Broadband Forum

Highlights from Broadband Forum
Presented by: IDC and JOBS 2020
December 4, 2003
Sawmill Inn, Grand Rapids

Panelists: Dennis Moon, Chief Scientist at WindLogics, Bob Erdman, Vice President of Quality Assurance at Amcom Software, Inc. and Nate Rajala, General Manager of Rajala Lumber Company

Keynote speaker: Gary Fields, President of Development Strategies, Inc.

The December 4th forum on broadband and its value as an economic development tool was the eleventh in a series of JOBS 2020 forums designed to help the community form a common vision for the future of the Itasca region. The panelists were asked to describe the pressing issues facing their business and how access (or lack of access) to broadband affected their business or the decision to locate their business where it is today.

The most basic definition of broadband is high speed telecommunications. There are many technologies available with different benefits and drawbacks. (DSL, Cable, Wireless, fiber) Broadband access is a core economic development element for most of today’s businesses. Rural communities are often at an economic disadvantage and broadband services are critical in order to compete globally and participate in a knowledge-based economy.

A little about the companies represented at the forum:

• WindLogics (formerly SSESCO): WindLogics is a wind resource analysis and forecasting company founded in 1989. A satellite office is located at the Itasca Technology Exchange (ITE) at Central Square Mall. ITE provides access to T1 speed and satellite dish. WindLogics core technology is meteorology and forecasting sciences. Core business is wind energy, government & military weather systems, and environmental visualization & Web delivery. WindLogics calculates 3D windfields based on historic weather data archives.
• Rajala Companies: Rajala Companies is a traditional manufacturing company in the forest products industry. The company is more than 60 years old and has facilities in Deer River and Bigfork. Increased strain on fiber availability, foreign competition, downward price pressure on products, building better relationships between company and customer, and value-added product and marketing are issues facing the company.
• Amcom Software, Inc.: Amcom has grown to become the 13th largest software development firm in Minnesota and now employs 85 people. Amcom’s mission is to help their customers streamline communications between their employees while automating their call center, thus improving service levels and saving money. Because of the technology and broadband availability, Bob Erdman, Vice President of Quality Control, was able to leave Edina and move to Cohasset.

What is the role of broadband for WindLogics?

• Broadband is the primary connection between WindLogics and their data sources and their customers.
  
• The company downloads more than a gigabyte (GB)/day of weather data from the net, along with another GB from satellite feed
  
• Web-based customer interactions;
  
• Sales and marketing presentations (webinars)
  
• Project requirements
  
• Customer furnished datasets (onsite data)
  
• Distribution of results and forecasts through custom password-protected websites
  
• Infrastructure requirements:
  
  • Broadband T1 for main office, preferable with redundant routing to the Internet backbone
    
  • Affordable broadband for employee homes …cable, Digital Subscriber Line (DSL)
    
  • Digital phone service allowing for voice over Internet Protocol (IP) to other company facilities (long distance savings)
    
  • Computer hosting facility with racks, cooling, and reliable battery/generator Uninterrupted Power Supply (UPS) system

What is the role of broadband for Rajala Companies?

• With several company locations, broadband connectivity is essential to view inventory and scheduling data
  Staffing decisions have relied on available information systems

What is the role of broadband for Amcom?

• Access to quality broadband Internet and telephony services is essential to Amcom’s day to day operations.
• Their employee base is remote and they must support the client base around the clock.
  
• Clients are all across the country, but staff is based only in Cohasset and Minneapolis.
• About 10 to 15% of Amcom employees telecommute from home. In order to do this, employees need access to high speed connectivity.

What can the community do to help these companies?

• Maintain quality schools
  
• Provide access to quality medical facilities
  
• Support library and cultural amenities
  
• Support availability of reasonable new, reasonably affordable “mid-range” housing
  
• Become more educated on forestry issues (Rajala Companies)
  
• Ensure that students graduate with good computer and math skills
  
• Provide access to quality, affordable childcare for women who want and need to work
  
• Quality workforce is needed -constantly changing technologies require learning new skills to stay current.
  
• Provide access to high speed connectivity: satellite offices need reliable and speedy access to main office
  
• Full featured telephony capabilities: Access to more than just POTS, ISDN, T1 and other services are needed

Keynote Address: The keynote speaker was Gary Fields, President of Development Strategies and Resources, Inc., a consulting organization that assists development organizations in designing and implementing new programs and projects. Gary is the Project Consultant to the Blandin Foundation, where he designed and implemented the Foundation’s Rural Broadband Initiative.

• Businesses need broadband access to compete in the global marketplace
  
• Employees need broadband to be competitive
  
• Communities need broadband to compete

Gary told the audience that market development is a higher priority than infrastructure development. At least 80% of Minnesota residents have access to broadband, but only 15% of residents subscribe to it. (The average residential cost is $40 per month.)

What can the Itasca region do about increasing broadband access and utilization?

• Assess local demand and existing services
  
• Determine market and service objectives
  
• Discuss service and infrastructure needs with local and potential providers
  
• Develop a community broadband plan
  
• Increase the size of the market
  
• Make appropriate investments if needed

Gary stressed that a community vision is more important than money. If a community has the vision, the money will come, but community providers, businesses, and local governments must work together. Broad based private and public sector leadership support is critical and service providers should be engaged early on as partners. Broadband is a core economic development issue and needs to be embraced.

"Keeping Communities Competitive", which will be held on January 13th, 2004 at the Radisson Suite Hotel in St. Cloud, MN. (There is a $50 registration fee.)
 
For more information, or to register, please email: broadband@blandinfoundation.org or call: 327-8705.