Southern Maryland Technology Infrastructure

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Southern Maryland Technology Infrastructure

• Tri-County Council
• for Southern Maryland
• Susan Ockert

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Topics

• Southern Maryland Explained
• Benefits of Broadband
• Technology Infrastructure
• Aggregate Demand Survey
• Current Use
• Demand
• Willingness to Pay

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Southern MarylandExplained
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Southern Maryland

• Largest employers tend to be government,
  non-profit, regulated
• Private sector businesses are very small
• 87 1 19 employees
• Unique Geography
• Military Presence
• Expectations

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Largest Employers
Calvert
Charles
St. Marys
Public sector or non-profit organization
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Public Sector
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Southern Maryland Private Sector
Construction, retail typically not
technology-driven
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Southern Maryland Private Sector
87 1-19 employees

• Other Services 94
• Construction 93
• Professional 88
• Health Care 86
• Retail 81

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Other Characteristics

• Geography
• Peninsula surrounded by water
• Natural conservation and heritage
• 123,000 acres protected out of over 664,000 acres
• (Southern MD Heritage Plan)
• Population distribution
• Population not at county seats
• Government/education/medical at county seats

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Defense Contractors

• Northrop Grumman
• Lockheed Martin
• BAE Systems
• DynCorp
• Boeing
• General Dynamics

Contractors can afford broadband since
headquarters pays for installation and operation
costs
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• Pax River
• 19,200 Employees
• 9,437 C M SMD
• 723,534,750 SMD
• 619 mil SMD contracts
• 7,105 SMD contractors

• Indian Head
• 3,569 Employees
• 2,738 C M SMD
• 99,452,591 SMD
• 10 mil SMD contracts
• 403 SMD Contractors

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Military Presence

• 1 in 3 jobs related to military bases
• Employees highly educated and technical
• 40 of Gross Regional Product
• 630 million in contracts in 2002, mostly
  engineering
• Joint Strike Fighter - 2005/2006
• 9 of 14 prototypes tested at Pax
• 400 new jobs
• Other countries will test own JSF
• UK
• Australia

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Job Growth

• From 1998 to 2001, over 1600 professional,
  scientific and technical services jobs were
  added, an increase of 23.
• Health care employment rose by more than 1500
  jobs, an increase of 20.
• As a percentage of total employment, health care
  rose from 12.1 to 13.2 while the professional
  services sector rose from 11 to 12.3.
• Southern Marylands economy becoming more reliant
  on high wage, high skilled jobs.

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Other Characteristics

• Expectations - want what other areas have
• Commuting
• 50 commute out of region
• Washington DC metro area
• In-migration
• Population explosion
• From Washington DC metro area

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Benefits of Broadband
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Benefits of Broadband

• ? Customers
• Market Share
• Revenue
• Morale
• ? Cost
• ? Productivity
• ? Profit
• ? Investments/Partners

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Transportation

• Increased traffic congestion
• Annual Average Daily Traffic
• Out region 14 increase from 1996-2002
• Intra region 35 increase from 1996 - 2002
• Clean Air Act Calvert and Charles in
  Metropolitan Washington Regions non-attainment
  area
• If region does not meet standards, federal
  funding can be frozen
• Southern Maryland transportation projects not
  funded
• Hughesville Bypass
• Widen 2/4
• 231 interchange
• 235 improvements
• Increase commute times means lost productivity
• Commute time increased 14 from 1990 - 2000

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Infrastructure Costs per Mile
Fiber optics 16x expensive
Wireless 37x expensive
Source Canadian Broadband Taskforce and
www.entrepreneur.com
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Opportunities
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Future of Health Care

• Extend the reach of specialty medicine to the
  patient
• Expand telecommuting opportunities
• Empower patients to manage their health data
• Provide distance learning opportunities
• Improved communications and medical
  decision-making.
• Lower cost of healthcare delivery

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Future of Education

• Teacher Shortage
• Increasing Population
• More schools
• Courses from other classrooms, schools, and
  college
• Courses 24 hours a day, 7 days a week
• Access to any lessons, software, or video for
  teachers, students, and parents
• With technology, need fewer teachers and not as
  much square footage

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E-Government

• Streamline citizen-to-government communications
• Improve quality of customer service
• Available to everyone
• Reduce digital divide
• Save taxpayers money

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• Service brought to customer
• instead of customer going to
• service

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Infrastructure
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Infrastructure

• Satellite
• T-1
• DSL
• Cable
• Wireless

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Satellite

• A broadband connection using airwaves, dish, and
  receivers with limited availability due to
  distance, capacity and technology.
• Bandwidth 500 kb/s
• Usage Multiple users, medium Internet traffic
• Hardware 600 - 1000
• Price 100 per month

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Satellite

• Drawbacks
• Susceptible to weather conditions (Rain, Snow,
  Wind, etc)
• Must have a clear view of the southwestern sky
• Expensive up front investment
• Lag times could be excessive

• Advantages
• Available in Rural areas
• Not limited to distance and infrastructure
  limitations
• Perfect solution for replacing Dialup
  connections
• High-Speed connection that is always on.
• approx. 10 times faster than dial-up

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Earthlink Satellite Service through Direcway
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Starband
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T 1 Line

• Broadband connectivity up to 1.5 Mbps with wide
  availability and support, although its greater
  complexity and expense limits its use in smaller
  organizations.
• Bandwidth 1.5 Mb/s
• Usage Dedicated access, virtual private network,
  static IP, 20 or more users
• Hardware Router - 600
• Price 450 - 1000 per month mileage

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T -1 - Verizon

• 99.9 uptime guarantee
• Statistics-view usage reporting
• Start-to-finish service and support
• Dependable network
• State-of-the-art Data Centers
• Primary and secondary DNS for up to 10 domain
  names

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DSL

• A broadband connection using telephone
  infrastructure with limited availability due to
  distance, capacity and technology.
• Bandwidth 144 kb/s 1.1 Mb/s
• Usage Dynamic IP addresses, multiple users,
  heavy Internet traffic
• Hardware Modem - 100
• Price 60 - 150 per month

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DSL - Verizon

• Technology that transforms ordinary phone lines
  into dedicated high speed digital lines for data
  transmission.
• Multi channel service that allows for
  simultaneous voice and data transmission.
• Two most common types of DSL service is ADSL
  SDSL
• Main competitors of DSL include Cable, Wireless,
  Satellite and Tier 2 and 3 dedicated access
  providers.

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Cable Modem

• A broadband connection using cable television
  infrastructure with limited availability due to
  distance, capacity and technology
• Bandwidth 10 Mb/s
• Usage Dynamic IP addresses, multiple users,
  heavy Internet traffic, Music, video
• Hardware Modem - 100
• Price 50 - 200 per month

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Cable - Comcast

• Download speeds at up to 3.5Mbps - twice as fast
  as DSL
• Uploads as fast as 384Kbps - 3 times the speed
  of DSL.
• Online storage, seven e-mail addresses, and the
  versatile home base of Comcast.net.
• Price for 1.5Mbps/256Kbps Comcast High-Speed
  Internet service is 42.95 per month for Comcast
  cable customers.
• Many factors impact download speeds

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GANS COMMUNICATION

• 5 - 15 times faster than standard dial-up, ISDN
• Maximum download speeds of 512k to 1meg
• Maximum upload speeds of 256k to 512k
• Commercial 1 89.95/mo
• Residential 39.95/mo

• Residential 512k/256k
• Commercial 1 512k/256k
• Commercial 2 1meg/512k
• Email accounts
• Unlimited Internet Access
• Static IP
• Data Packet Prioritization
• Basic Expanded TV

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Wireless

• A broadband connection using airwaves, antennas,
  towers, and receivers with limited availability
  due to distance, capacity and technology.
• Bandwidth 1.2 Mb/s 11 Mb/s
• Usage Dynamic IP addresses, multiple users,
  heavy Internet traffic
• Hardware Base station 175 antenna -50
  receiver 200 -250
• Price 40 - 400 per month

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Southern Maryland Wireless
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Southern Maryland Wireless

• 69.95 per month
• Available only in Dunkirk
• Not available to residential

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Oneder

• Currently available in White Plains
• Starting at 49.95 per month
• T-1 speeds and up
• Reliability and security for business
• Coming to La Plata and Waldorf

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Current Infrastructure

• DSL coverage limited
• 18 COs for 1,038 square miles
• Cable modem service to businesses limited
• Wireless coverage insufficient
• Rental rates on towers high
• Towers locations limited
• T-1 lines too expensive for majority of small
  businesses
• Satellite equipment/installation charges expensive

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Aggregate Demand Survey
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Survey Questions

• Name/location
• Number of employees
• Industry Sector
• New technology development
• In-house vs outsourced
• Current usage
• Demand
• Willing to Pay

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AGGREGATE DEMAND
BUSINESS FUNCTION
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Service to Bandwidth
Service Bandwidth Dial Up 56
kb/s Satellite 500 kb/s DSL 1.1
MB T1 1.5 MB Frame Relay 1.5
MB Wireless 1 to 11 MB Cable 10 MB
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Cost of Service
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Preliminary Results

• 165 Responses -14 Public
• Sector 151 Private
• 0 19 116 77
• 20 49 17 11
• 50 99 4 3
• 100 249 9 6
• 250 499 3 2
• gt 500 2 1

• Southern Maryland 5,684
• ( of private sector establishments)
• 0-19 4,946 87.0
• 20-49 483 8.5
• 50-99 173 3.0
• 100-250 63 1.1
• 250-499 13 0.2
• gt500 6 0.1

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Public Sector

• Higher Education
• Hospital
• Libraries
• Local Government

• 0 19 3 21
• 20 49 2 14
• 100 249 1 7
• 250 499 1 7
• gt 500 7 50

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Industry Type
Survey
Southern Maryland
Professional 17 Other Services
16 Information Tech 11 Construction
9 Manufacturing 8
Construction 18 Retail 17 Other
Services 10 Health Care 9 Professional 8
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Current Usage
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1 19 Employees
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Public Sector Usage

• 57 of public sector uses more than one method
  for accessing the access
• 79 use T-1 lines either alone or in combination
  with other methods
• None rely on Dialup alone
• 1 DSL and 1 Cable

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Industry Use
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Industry Use
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DEMAND
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Demand

• 56 kb/s
• gt500 kb/s - lt 1 Mb/s
• 1 5 Mb/s
• 6 12 Mb/s
• gt 12 Mb/s
• Unknown

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Demand
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Map
Waldorf 27 White Plains/ La Plata
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Prince Frederick 27 Huntingtown
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Solomons 8
Lexington Park 10 California/Hollywood
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Demand for 1 - 19
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Demand by Industry
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Demand by Industry
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Summary

• Majority demand 1 5 mg
• DSL
• T1
• Wireless
• Cable
• Demand concentrated
• Waldorf
• Prince Frederick
• Lexington Park

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Willingness to Pay
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Willingness to Pay

• Hardware lt 100 and Monthly lt 100
• Hardware lt 250 and Monthly lt 250
• Hardware gt250 and Monthly gt 250

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Willing to Pay
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Map
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1 19 employees
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By Industry
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By Industry
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By Industry
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Summary

• Majority want to pay less than 100/month for
  broadband service
• DSL
• Cable
• Wireless
• Satellite

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Conclusions

• Uniqueness of region has hindered build out of
  technology infrastructure
• Large public sector
• Very small businesses
• Demand is high for broadband at affordable prices
• Military presence
• Expectations
• Job growth
• No one provider can service the whole area
• Need a consortium

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Susan Ockert [phone] sockert_at_tccsmd.org