Broadband Benefits

The focus of the Broadband Toolkit is a guide to assist communities to attain the most appropriate level of broadband that will achieve positive and successful outcomes for the municipality. Before setting out on a path forward it is important to develop a clear set of goals for and outcomes you want and expect from broadband. In addition, there are a number of options and possible paths forward that depend on a number of factors that can vary from municipality to municipality.

While this guide cannot be prescriptive about what goals should be or which options are most appropriate for every municipality, this section provides insights and considerations to assist in this process. The process of selecting the right path forward may continue through subsequent steps to review community readiness. At a certain point it will be appropriate to engage a broader range of community stakeholders and proponents in the process so that the best option is both selected and supported.


Broadband Basics

In preparing strategies and plans for improving broadband availability for your municipality it is important to understand what level of service is needed and what different technologies can deliver. The most well understood definition of service level is the speed, sometimes also referred to as bandwidth, of the connection. Typically, download speeds are higher than upload speeds.

Different technologies can support different speeds and service providers usually offer service packages with different speeds at various price points.

Broadband Speeds

Whether you are a household or business, individual user needs can vary. In general, however, both current research and evolving standards indicate that communities should aim for speeds of at least 25 Mbps download and 3 Mbps upload. For some more urbanized areas, with access to new technology, such as fiber optics, even higher download and upload speeds may be required. It is also important to recognize that speed demand will continue to grow over time, so using broadband technology that is scalable to higher speeds is important for meeting future needs.

While connection speed is the most obvious definition of service level, the reliability of the connection is also important and can vary for different reasons based on the type of technology used. Reliability is primarily about having continuous access to your Internet connection at the expected speeds.

The reality for rural communities is that many residents and businesses continue to lack access to sufficient broadband, or face high costs for acquiring broadband with sufficient speed even when that is possible.

For a more detailed explanation of broadband speeds and considerations, please refer to the Technology Overview.

Planning for the Future

Technology continues to evolve – for example the increasing use, and availability, of cloud-based applications – creating a growing need for more and more speed. As anyone who has owned personal computers for a number of years will know, software applications evolve in lock-step with computing power (CPU speeds and memory) and operating systems. Similarly, as Internet speeds and bandwidth increase broadly the services and applications offered and marketed to people largely assume that such bandwidth is available. The current emergence of ultra-HD televisions and content broadcast, including over the Internet, is just one example of this trend.

User needs will continue to evolve just as the Internet and its content will continue to evolve, with demand for speed increasing over time. Networks, especially new builds, should be designed to accommodate increasing speed demands over time.

Broadband Technologies

Having a basic understanding of the different technologies available, as well as their benefits and limitations, is important when considering the current status of broadband in your municipality and the options and the implications for addressing them. It is possible that a mix of technologies may be needed to ensure that all residents have access to at least a minimum level of broadband service.

The most prevalent broadband technologies currently available are: Digital Subscriber Line (DSL), Cable Modem service, fixed wireless, and fiber optic technologies, with some use of mobile wireless service as well as satellite wireless.

DSL connections use the telephone wire connections that are dedicated to each user, but signals that are carried over copper wire attenuate (lose strength) with distance. Cable Internet has good distance range but the facility bandwidth is shared by users within a neighbourhood. Fixed wireless has good range and speed, but requires radio line of sight that can limit availability. Each technology also uses very different network infrastructure and costs.

For new network builds fiber technologies are the first choice because of their virtually unlimited speed capacity and reliability, and “future-proof” upgradability. New networks may also include other technologies to augment fiber networks to access difficult to reach areas, e.g. with fixed wireless systems.

A summary of the basic broadband technologies and their relative advantages and a more complete description are provided in the Technology Overview.


The Case for Broadband – Social and Economic Benefits

To assist communities in setting some clear goals this guide offers a research-based “case for broadband” – why do you need it and why is it important? This provides a framework for evaluating the impacts and the opportunities relevant to each individual municipality’s situation.

Each municipality must evaluate its own situation with respect to broadband, and align their broadband goals and outcomes with the specific issues, needs, and opportunities for their municipality. Municipalities should also align their decision to any broader goals for ongoing economic and social development for the municipality.

The notion that “no broadband is bad” is generally accepted even though personal opinions can vary. What is less well understood is how and why broadband is “good” in a practical and an actionable sense. Extensive user-based research[1] from 2012 to the present shows some clear trends and relationships between the availability and the effective use of broadband, as well as its economic and social benefits for communities.

From a broad perspective, broadband enables users – households, businesses, and other organizations – the opportunity to more fully participate in the growing digital economy.

  • For households this can mean better employment and more employment options or flexibility, more varied and cost-effective education opportunities, access to more and better health services through telehealth applications, and the opportunity to increase household income.
  • For businesses this can mean being more productive and competitive in a global marketplace, cost savings, revenue growth, and improved profitability.
  • For other organizations and community anchor institutions, including municipalities, schools, libraries, etc., this can mean improved and more accessible services for citizens, new service offerings, and improved efficiencies.
  • For communities this all translates into a more competitive business environment, more productive workforce, and overall community vitality by better retaining and attracting population and businesses.

These are not simply nice concepts – they are measurable. The following sections provide key insights on the impacts of broadband from direct research of broadband users. These insights can be used to reinforce the need for communities to take action and to formulate clear goals and expectations from proposed broadband initiatives.

Please refer to Broadband Economics for additional information and research-based statistics related to the broadband benefits listed below.

Broadband improves business growth and competitiveness

Businesses are the main drivers for local economies and in an increasingly digital world it is ever more important for businesses to be competitive globally. The Internet opens tremendous opportunities for business growth while at the same time placing increasing pressures on businesses to compete outside the local community. Access to, and the effective use of, broadband enables businesses (especially small businesses) to compete effectively while also enhancing their productivity and bottom line.

Broadband means jobs

Small and medium enterprises (SMEs) are the engine of employment growth in most communities. While large employee firms often get the most attention, by some estimates SMEs generate over 50% of job growth. Effective utilization of broadband leads to financial gains for businesses, stimulating and accelerating business growth. This naturally leads to positive employment impacts for the municipality.

Broadband leads to household benefits and increased income

In addition to the daily lifestyle benefits that the Internet offers individuals (e.g. communication, entertainment, social media, etc.), broadband offers tangible and meaningful benefits to households through opportunities for education, health services, employment, and household income. This is especially important for smaller and more rural communities that may not have the same level of services locally that are available in more urban areas. High-speed broadband is essential for effectively delivering many services and for households to benefit from the opportunities offered.

The needs and opportunities for benefiting from broadband will vary with the composition of each household. Not everyone needs to telework, and not every person is interested in or willing to start a home business. Access to high-speed broadband, however, provides these opportunities that otherwise would not be available. It is clear that many households do make use of these opportunities and benefit in a material way, whether it is through additional household income, education and skill development, health services, or better paying jobs.

Broadband improves attraction and retention

Given how widely used the Internet is and how much it impacts our daily lives, virtually everyone is aware of broadband to some degree. Therefore, the availability of high-speed broadband has become an important factor in decisions on where we live and work.

  • Businesses want to be able to access high-speed broadband for it materially affects their ability to be competitive in an increasingly digital economy.
  • Homeowners want to be able to access high-speed broadband for a broad range of quality of life benefits, and to not feel at a disadvantage based on their choice of living location.

For households in smaller and more rural communities this becomes even more important where the availability of services and opportunities, such as education, health, and employment, locally can be more limited. Access to a wider range of service online becomes a great equalizer for quality of life.

The availability of broadband is cited as very important for choosing and for remaining in their location by two out of five households, and three out of five businesses. This information demonstrates that both businesses and homeowners are well aware of the importance of broadband and factor this into their decisions on where to locate and whether or not to remain in their location. Communities without adequate broadband fall behind competitively in terms of attraction and retention, and risk losing businesses and population to better served communities.


Broadband and Innovation

Innovation is typically defined in terms of creating something new – simply put, creating new value and/or capturing value in new ways[2]. How does broadband help or enable innovation?

The power of knowledge sharing and collaboration

Innovation comes from the creative minds of people and is enabled by their skills, knowledge and experience. The ability for people to share their skills, knowledge and experience and to collaborate enhances the creative innovation process. The Internet with its vast trove of knowledge and as a mechanism to communicate and to share information – with anyone anywhere – further enhances the opportunity to innovate.

This sharing can range from informal social media and discussion groups to more formally organized collaborations among businesses, academic institutions, governments, and other organizations with the intent of facilitating innovation. Many communities and regions have established innovation centres, labs, or business incubators to assist entrepreneurs and new business start-ups. Access to quality broadband enables effective communication, collaboration, and innovation.

Broadband enables innovation through technology

As a communication and data transfer mechanism broadband enables the innovative creation of new services with new value, not only by connecting people but also by connecting devices and by developing new applications. This applies to both business innovation (commercial products) and to public services, such as telemedicine, distance learning, and civic engagement.

Smart Manufacturing

Smart manufacturing is defined[3] as the sophisticated practice of generating and orchestrating the use of data-driven manufacturing intelligence using multiple real-time smart systems pervasively deployed throughout all operating layers (i.e. control, automation, maintenance/reliability, trade-off decisions, operations, logistics, risk, business management, etc.) across the entire factory and supply chain. Smart manufacturing integrates network-based data and information that comprises the real-time understanding, reasoning, design, planning and management of all aspects of the manufacturing and supply chain enterprise (i.e. manufacturing intelligence).

Smart Cities – Not just for large cities

The Smart City concept has been around for many years and there are many examples of innovation-utilizing technology and broadband connectivity in large cities around the world. These concepts are just as applicable to smaller communities where the infrastructure is available and the economies of scale make sense in relation to the opportunities and the needs of the municipality.

Perhaps just as importantly, the benefits to the municipality and its citizens can become an additional driver and justification for investment in improving their broadband infrastructure. Good broadband connectivity is a key underpinning for other technologies that need to communicate to deliver smart city capabilities and services. Smart cities utilize a range of applications that leverage what is commonly called the “Internet of Things” (IoT). An increasing number of devices, from home appliances to medical equipment to vehicles, contain intelligence and the ability to communicate and exchange data over the Internet, to each other, and to other systems and applications.

A more complete overview of broadband innovation and Smart City concepts is available in Broadband Innovation.

[1] Research by Strategic Networks Group, Inc., includes data from over 23,000 businesses and 27,000 households since 2012 on the utilization of the Internet and benefits derived from utilization, user preferences, barriers, and impacts.
[2] InnovationManagement.se – http://www.innovationmanagement.se/imtool-articles/how-do-you-define-innovation-and-make-it-practical-and-saleable-to-senior-management/
[3] Smart Manufacturing Leadership Council – https://smartmanufacturingcoalition.org/sites/default/files/smlc_sm-real-time_networked_enterprise_1.pdf