For most Americans, online pursuits of all kinds – from banking to shopping to socializing – set the backbeat of daily life. On a grander scale, the Internet is fast becoming the critical driver for economic growth, job creation, global competitiveness, and enhanced quality of life.
Get ready, then, to be surprised: The United States lags behind many advanced countries in the adoption and quality of broadband Internet service.
About a third of U.S. residents do not have high-speed Internet service at home, according to a 2010 survey by the Pew Internet & American Life Project. In Massachusetts, research by the John Adams Innovation Institute of the Massachusetts Technology Collaborative shows that 32 towns have no broadband networks at all; an additional 91 communities offer service to less than 10 percent of households. These holes in the digital fabric are particularly large in the western part of the Bay State, which comprises Berkshire, Franklin, Hampden and Hampshire counties.
Last September, 10 seniors in Bentley’s Honors Program rolled up their sleeves to help. Armed with majors in Accountancy, Economics–Finance, Marketing, and Computer Information Systems, the group had a three-pronged mission: to create a marketing plan designed to boost broadband adoption in western Massachusetts; to assess the technological and geographical challenges of deploying infrastructure and service; and to evaluate public policies aimed at making the Internet as ubiquitous as the telephone. The students formed three smaller teams to take up each part of the mission, and set to devising solutions for a real-life client.
Getting In On the Act
The client was the Massachusetts Broadband Institute. The MBI was created in 2008, when lawmakers passed the Broadband Act as a means for rolling out new infrastructure and expanding services statewide. Federal and state investment in the project totals $71.6 million.
The funds are being used to build a 1,100-mile fiber-optic network – the so-called middle mile – to begin bridging the digital divide in western Massachusetts. As construction proceeds, the MBI must also develop a business model for a telecommunications company to build the “last mile,” that is, affordable access to households and small businesses.
The seniors who worked on the Last Mile project were Wander Cedano, Ilya Fishman, Corey Goodermote, Stacie Henry, Mike Johnson, Lauren Lesniak, Jackie Mahoney, Stephanny Morales, Jenna Nakamura and Sean Smith. The team’s faculty adviser, Jeff Gulati, is an associate professor of political science in the Global Studies Department. In December 2010, after a semester of in-depth research, the students traveled to Westborough, Mass., to present their findings and recommendations to the MBI.
“It was exciting to work on a real-life project,” says Accountancy major Jackie Mahoney. “I felt motivated by the possibility that our suggestions may actually help to get broadband technology into homes in western Massachusetts.”
Out of the Red, Into the White
On the technology front, the students advised the MBI to reconsider fiber as the Last Mile solution.
“Fiber optics may be the gold standard for broadband Internet, but it is quite costly for service providers to run the fiber to isolated homes in sparsely populated areas,” explains Sean Smith, an Economics–Finance major. Indeed, the infrastructure’s high cost, coupled with few customers, sends the return on investment to zero or lower.
Instead, the students proposed an option known as white space: bandwidth that was freed up when the Federal Communications Commission (FCC) ordered television stations nationwide to change from analog to digital signals. The FCC auctioned off some of this wireless real estate in 2008, selling higher frequencies to Verizon and other private corporations. But white space frequencies below 700 MHz – commonly called “unlicensed wireless” – remain available.
This new frontier offers a tantalizing opportunity to bring broadband into western Massachusetts, according to research by the Bentley team. Among its virtues, white space requires less hardware than current wireless options, easing companies’ investment loads. Moreover, its low-frequency operation enables white space wireless to zip through buildings and other solid objects that stymie 3G and 4G signals.
Up for Adoption
Can we expect an “if we build it they will come” scenario for broadband? The students who tackled the marketing component of the Last Mile project say otherwise, calling for a concerted campaign to win hearts and minds.
Their review of national statistics for Internet adoption showed lower levels of use among certain groups, based on factors such as age, income, education level and native country. Many of the non-adopters consider the Internet to be irrelevant to their daily life, overly expensive, and open to dangers such as identity theft.
Overlaying national demographics with those of western Massachusetts enabled students to identify likely points of resistance. Next, they studied approaches that had worked to overcome the common objections to Internet adoption. Their report counsels the MBI to identify local individuals who are respected, visible members of their communities, and who are knowledgeable about broadband technology.
“We found that adoption programs that target the local community’s population and culture are often the most successful,” explains Mahoney, “especially when these programs aim toward a specific demographic, for example, the elderly or recent immigrants.”
Broadband for All
While the marketing and technology groups worked their ends of the Last Mile blueprint, the policy team scrutinized government initiatives with demonstrated merit for bringing broadband to underserved areas. They identified the FCC’s Universal Service Fund (USF) as a crucial tool for the MBI, should the fund become available to expand broadband service. Decades ago, the USF played a key role in bringing telephone service to households nationwide, by subsidizing phone companies’ costs in building out to sparsely populated and low-income areas.
The students’ advice was remarkably prescient. In February 2011, the FCC voted unanimously to refocus the USF from supporting voice networks to propagating broadband throughout the nation. The new Connect America Fund will take time to execute, but the vote was a welcome development for the MBI.
“We’re impressed at the students’ insight on this issue,” says MBI Deputy Director Jason Whittet. “They should be proud of having recognized such an important resource for broadband.”
The students-turned-consultants earn similar high marks from their professor.
“At the presentation to MBI, the seniors discussed key topics clearly and concisely, and confidently answered questions on the fly,” observes Gulati. “It was clear they had gained a lot of knowledge about broadband technology and the factors affecting adoption, as well as the economics facing service providers.”
Willet notes that the MBI is particularly interested in the recommendation to use unlicensed white space. “They acquired a great understanding of the challenges we face in bringing broadband to western Massachusetts,” he says. “This Bentley program is a tremendous resource for the community.”