The RuralBroadband EconomyFrom Local to Global

Welcome & Introduction

Suvi LindenUN Broadband Commissioner,

former CommunicationsMinister and ICF Visionary of

the Year

Building thecommunity of

the 21st Century

Think tank studyinghow communitiesuse ICT to buildeconomicprosperity, solvesocial challengesand enrich theircultures.

Global network of134 cities andregions, identifiedas IntelligentCommunities,sharing knowledgeand pursuing jointdevelopment.

Global network of134 cities andregions, identifiedas IntelligentCommunities,sharing knowledgeand pursuing jointdevelopment.

Global network of134 cities andregions, identifiedas IntelligentCommunities,sharing knowledgeand pursuing jointdevelopment.

Global network of134 cities andregions, identifiedas IntelligentCommunities,sharing knowledgeand pursuing jointdevelopment.

Think tank studyinghow communitiesuse ICT to buildeconomicprosperity, solvesocial challengesand enrich theircultures.

CommunityAcceleratorCommunityAcceleratorCommunityAccelerator

Think tank studyinghow communitiesuse ICT to buildeconomicprosperity, solvesocial challengesand enrich theircultures.

SUMMIT 15

We all think thatbroadbandbut what is it reallyis important

worth?

€1.4 bn

€19.4 bn

€5.5 bn

640m fixed,1.1 bn mobile

broadbandconnections

640m fixed,1.1 bn mobile

broadbandconnections

This Internet thing is kind of big

1994

2014

of economic growth in developed economies likeFinland came from the Internet over past 15 years21%

For every job the Internet makesobsolete, it has created 2.6 more

the productivity gain – doing more with the sameresources –the Internet provides the average small-to-midsize business

10%

Small-to-midsize businesses that areheavy users of the Internet grow 2x faster

Internet Matters, McKinsey & Co.

This Internet thing is kind of big

It’s not what you expect.Why?

Right?

Right?

Twitch

55 million users watched12 billion minutes in 2013The best “live streamers”

earn up to $100,000

Amazon acquired for US$970m

Interactivitychanges

everything

It can

take the stairsmake suburban shoppers

It cansave a business

It can

save moneyhelp a business

“Energy Efficiency: How the Internet Can Lower Your Electric Bill,” by DavidUnger, The Christian Science Monitor, Oct 7, 2013

For 177,000-s/f warehouse, annual electricitycost dropped from $50,000 to $5,000

It can

smartermake a community

WhittleseaVictoria, Australia

ICT Scorecard

It can

a better futuregive a community

Bristol, Virginiap. 17,000

use information andcommunications technology(ICT) as a foundation for…• Building inclusive local

prosperity• Solving social problems• Preserving and enriching

quality of life

IntelligentCommunities

Broadband KnowledgeWorkforce

Innovation

DigitalInclusion

Marketing& Advocacy

IntelligentCommunityIndicators

GrowthCycle

We’re talking about

Not so much.

Smart Cities,

Right?

Intelligent Communities find

technology-smart solutionsto their most urgent problems– for today’s citizens andtomorrow’s

vision-driven…community-based…

And theyare not just cities.

Preserving the terroir

Rural retail

Higher productivity

Milkingtime!

Milkingtime!

Leveraging your strengths

Stratford, Ontariop. 32,000

Leveraging your strengths

Stratford, Ontariop. 32,000

Leveraging your strengths

Stratford, Ontariop. 32,000

Leveraging your strengths

Muskokap. 60,000

Leveraging your strengths

Stratford, Ontariop. 32,000

Leveraging your strengths

Stratford, Ontariop. 32,000

Stratford, Ontariop. 32,000

Leveraging your strengths

Stratford, Ontariop. 32,000

Leveraging your strengths

Stratford, Ontariop. 32,000

Leveraging your strengths

Stratford, Ontariop. 32,000

Leveraging your strengths

RuralChallenge

195020102010 (Industrial nations)

Rural

Urban

n Product of greater efficiency§ Australian coal miners produced 3x more coal in

1997 than 1980 – while employment shrank 17%§ From 1980 to 2002, number of US hog farmers

declined 6x while hogs per farm grew 7x§ What does it take to run a modern textile mill?

Density

Charisma

“Wisely or not, Homo sapiens hasbecome Homo urbanus," says the UN,forecasting that 2/3 of world'spopulation will live in big cities by 2030.

RuralChallenge

RuralChallenge

RuralChallenge

Scale

Making itbetter to behere…

…than here

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“Location remains central to competition.Today’s economic map of the world ischaracterized by clusters: critical masses inone place of linked industries and institu-tions that enjoy unusual competitivesuccess in a particular field.”

“The history of [clustering] seems tosuggest that…returns peaked before WorldWar II...Many of the traditional localizationsof industry have declined and those thathave arisen, such as Silicon Valley, don’tseem comparable in scale.”

Porter

Krugman

Stavenger Centre for Innovation Research analysisof 1,600 companies with +10 employees inNorway’s five largest metro areas:

“The main drivers of innovation are notnational clusters but global pipelines ofinternational cooperation.”

London

World Financial Centers

New York

Tokyo

Lenexa

18 m2 5 m2

State-of-the-art infrastructure once foundonly in major cities

n Counties with +60% broadband adoption…§ Had higher growth in median household income§ Much slower growth in unemployment during

recessions

n Counties with -40% broadband adoption…§ Had lower growth in total employment and number

of employers

In rural countries served by broadband, from2001 to 2010, across North America:

“Broadband’s Economic Impact,” The Daily Yonder

n Promotes employment growth in ruralregions, but not urban regions, ineducational services, public admini-stration, information, culture andrecreation, and finance, insurance andreal estate sectors

n Promotes employment growth at theexpense of urban regions in professional,scientific and technical services, and inbusiness, building and other supportservices

14-year study of broadband deployment andeconomic impact in Canadian communitiesshowed that broadband deployment…

No measurableimpact on

goods-producingindustries

The RuralImperative

To make rural regions asdynamic a place to live, work,

grow a business andwelcome the next generation

as any city anywhere.

RuralOpportunities

To think big whilepreserving the smalltown quality of life

To give talented youngpeople a chance tostay in the communitythey love

To give your citizensworld-class educationand 21st Century skills

To build thriving newsectors to diversifyyour economy

Keynote Interview

Sini WirénMinisterial Adviser,

Ministry of Transport andCommunications

Insights into theBroadband Economy

Jay GilletteProfessor, Ball State

University; Fulbright-NokiaDistinguished Chair

Unlocking the Potentialof the Rural Economy

Jarmo HeiskanenRegional Council of North Karelia

Mikko VaisanenCouncil of Oulu Region

Merja LouetSiikaverkko

Ari Alatossavalin Micropolis Oy; Mayor-Elect, Ii

RuralOpportunities

To think big whilepreserving the smalltown quality of life

To give talented youngpeople a chance tostay in the communitythey love

To give your citizensworld-class educationand 21st Century skills

To build thriving newsectors to diversifyyour economy

Building thecommunity of

the 21st Century