The State of Broadband in Mississippi · •Today digital globalization has opened the door to...

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The State of

Broadband in

MississippiDr. Roberto Gallardo

April 13th, 2017

MS Public Service Commission

• Telephone 75 years

• Mobile phone 16 years

• World Wide Web 7 years

• Facebook 4 years

• Instagram 2 years

• PokemonGo 1 month

Source: Twitter user @ValaAfshar; ITU; Statista; BCG Research

Reaching 100 million users worldwide

The Digital Economy

• In 2016, it employed 32 million + people than in 2010

• By 2020, will reach $6.6 trillion in G-20 economies

• Real threat to economic growth: digital divide

Source: Boston Consulting Group

1st Industrial Revolution

Source: Rifkin, J. (2015). The Zero Marginal Cost Society

Communication Energy Transportation

2nd Industrial Revolution

Source: Rifkin, J. (2015). The Zero Marginal Cost Society

Communication Energy Transportation

3rd Industrial Revolution

Source: Rifkin, J. (2015). The Zero Marginal Cost Society

Communication Energy Transportation

Digital Potential

• Dozens of indicators

• Building digital assets

• Expanding digital usage

• Creating digital workforce

Source: McKinsey Global Institute (2015)

18%

• Internet of Everything (IoE)

• “Physical world can now be digitized, monitored,

measured, and optimized.” – Project Syndicate

• At least 50 billion devices will be

connected by 2020 – Cisco (2014)

• “IoE is a $19 trillion global opportunity

over the next decade” – Cisco (2014)

• Up to $11 trillion annual economic impact

in 2025 – McKinsey (2015)

Digitization, huh?

21st Century Oil

“Big Data is the oil of the 21st century. Oil is useless

thick goop until it’s refined into fuel. Big data’s version

of refined fuel—proprietary algorithms that solve

specific problems that translate into actions.”

Source: Peter Sondergaard. Forbes

Hello algorithm economy!

• Access to talent

• Networking

opportunities

• Proximity to customers

and suppliers

How exactly does it work?

• With connectivity & know how

• Better air quality

• Natural amenities

• Less traffic

Innovators*

*Source: Washington Post

Rural areas offer

• Geographic proximity

• The bigger, the better

• Tied to office, factory

• Mass production

Economic landscape shifting

Industrial Economy Digital Economy

• Decentralization

• Economic gardening

• Work from anywhere

• Open innovation

Digital

Globalization

• Digital flows—nonexistent 15 years ago—have a

larger impact on GDP than centuries-old goods trade

• Trade was once confined to advanced economies

and large multinational companies

• Today digital globalization has opened the door to

developing countries, small companies and start-

ups, and billions of individuals

Source: McKinsey Global Institute. Digital Globalization: The New Era of Global Flows. March 2016

Digital Age makes possible …

Commerce

Education & Employment

Communication

Productivity

Banking/Funding

Healthcare

Entertainment

Information

Innovation/Collaboration

Email

Credit: Jordana Barton. Federal Reserve Bank of Dallas

Do I need faster Internet?

Do I need electricity when I already use candles?

… is like asking …

Change is not easy …

“Doubt is an

uncomfortable

condition, but

certainty is a

ridiculous one.”

Voltaire

That selfie generation …

Extension Resources

• Virtual Incubator Program (VIP)

• Master Technology Innovator (MTI)

• Digital Literacy

• Websites

• 4-H Robotics/Scratch Jr.

• E-Front Door

• Digital Works

• DR Certification

Digital Divide Index

• Census tract data

• Broadband Infrastructure

• Access (Availability)

• Speed (Download/Upload)

• Residential Connections

• Socioeconomic characteristics

• Percent Ages 65+

• Percent Age 25+ with less than high school

• Individual Poverty Rate

• Index Score: 0 to 100

• ici.msucares.com/ddi

DDI: Missisippi

• Infrastructure/Adoption

• 2014: 75.05 (49th)

• 2015: 77.48 (49th)

• Socioeconomic

• 2014: 52.14 (51st)

• 2015: 53.41 (51st)

• Digital Divide Index

• 2014: 63.80 (51st)

• 2015: 64.70 (51st)

10.1

3.8

39.5

36.1

10.7

61.5

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

Overall Urban Rural

Percent 2010 Population without Access to 25/3 Fixed Broadband

U.S. Mississippi

Source: FCC Form 477 December 2015 v2; Census-tract data

Source: FCC Form 477 December 2015 v2; Census-tract data

46.257

50.777

27.503

23.559

31.726

14.048

0.000

10.000

20.000

30.000

40.000

50.000

60.000

Overall Urban Rural

Avg. Max. Adv. Download Speeds (Mbps)

U.S. Mississippi

Source: FCC Form 477 December 2015 v2; Census-tract data

15.753

16.999

10.585

3.984

5.276

2.479

0.000

2.000

4.000

6.000

8.000

10.000

12.000

14.000

16.000

18.000

Overall Urban Rural

Avg. Max. Adv. Upload Speeds (Mbps)

U.S. Mississippi

DDI: Mississippi

142,287

389,918

666,076

1,789,800

4.8

13.0

22.3

59.9

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

2,000,000

Lowest 2nd Lowest 2nd Highest Highest

Pe

rce

nt

Po

pu

lati

on

Digital Divide Quartiles

2015 Population

Mississippi

DDI: Mississippi

19.3

5.4

10.0

20.2

46.6

50.7

14.5 15.0

27.8

69.0

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

Overall Lowest 2nd Lowest 2nd Highest Highest

Percent 2010 Rural Population

U.S. Mississippi

DDI: Mississippi

5.86.6

2.7

4.8

6.3

7.6

18.4

23.5

13.5

15.1

19.4

28.0

0.0

5.0

10.0

15.0

20.0

25.0

30.0

U.S. Mississippi Lowest 2nd Lowest 2nd Highest Highest

Percent 2015 Population Ages 25-54 (Prime Working Age)

Unemployed Not in Labor Force

DDI: Mississippi

17.7

5.18.2

13.5

22.3

30.3

15.3

24.7

28.5

33.4

31.4

30.6

35.7

34.0

29.5

20.7

49.0

31.4

24.0

14.8

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Mississippi Lowest 2nd Lowest 2nd Highest Highest

Digital Divide Quartile

Percent Population 25 and over by Ed. Attainment 2015 Mississippi

Less than High School High School Some College Bachelor's or more

DDI: Mississippi

$39,665

$79,284

$57,032

$44,407

$33,847

22.5

6.2

10.8

20.2

27.4

0.0

5.0

10.0

15.0

20.0

25.0

30.0

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

$90,000

Mississippi Lowest 2nd Lowest 2nd Highest Highest

Po

vert

y R

ate

Do

lla

rs

Digital Divide Quartile

Median Household Income & Poverty Rate

2015 Mississippi