Rural Internet Access Authority: Connecting North Carolina to a Better Future Executive Summary

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1 Connecting North Carolina to a Better Future Project Manager: Jane Smith Patterson, Executive Director Rural Internet Access Authority 4021 Carya Drive Raleigh, NC (919) fax: (919) jpatterson@e-nc.org Category for Judging: Communications Infrastructure Person Nominating: George Bakolia, Chief Information Officer, North Carolina Office of Information Technology Services PO Box Raleigh, NC (919) Executive Summary In 1999 and 2000, four influential groups issued reports pointing to North Carolina s need for advanced information technology. Reports by the U.S. Department of Commerce, the N.C. Board of Science and Technology, the N.C. Rural Economic Development Center, and the Rural Prosperity Task Force carried a common theme: to prosper as people and to strengthen the state s economy, North Carolinians must have access to Internet opportunities. Statistical information supported this conclusion and identified it as a need: North Carolina was found to be in the bottom ten percent of the nation in homes connected to the Internet. The people without access were most often rural and poor. In August 2000, the N.C. General Assembly established the Rural Internet Access Authority to address the need for Internet access. The authority was charged with meeting a series of goals, not the least of which was making high-speed Internet access available to all North Carolinians by December 2003, at prices comparable in rural areas to those in urban ones. Specific goals of the authority included: Ensure the availability of local, dial-up Internet access statewide by August 2001 Complete an inventory of the state s technology infrastructure and identify pockets of need by November 2001 Establish two model telecenters by January 2002 Make high-speed Internet access available statewide by December 2003 Promote the increased use of computer devices and the Internet throughout the three-yearlong initiative Then Governor Hunt and the N.C. General Assembly worked to create an authority with both public and private interests represented, especially in the areas of membership, administration and financials. The appointed members of the 21-person commission range from an economic developer to a Time Warner Cable vice president, and from a rural county commissioner to the head of an electric cooperative. The authority is housed within and staffed through a nonprofit organization, the N.C. Rural Economic Development Center, which also acts as the authority s fiscal agent. The authority receives its funding through a $30 million allocation by MCNC, formerly the Microelectronics Center of North Carolina and also a nonprofit, and through cash and in-kind donations from more than 52 private corporations. The authority has been carrying out its mission at no cost to state government or to tax payers. While it reports to both the legislative and fiscal bodies that helped create it, the authority is most accountable to the people of North Carolina. The overall goal of the authority is to improve the economic prospects and enhance the quality of life of citizens across the state through access to and education about Internet and computer technology. To involve citizens in this process, the authority created a grassroots effort, the e-nc Initiative, which uses a network of more than 2,800 volunteers statewide to help connect North Carolinians to the Internet and a better future.

2 Connecting North Carolina to a Better Future p. 2 of 6 Description of Project Overview The Rural Internet Access Authority was established by the N.C. General Assembly in August 2000 to ensure that all North Carolina citizens, businesses and communities, particularly those in rural areas, are aware of, know how to use, and have access to high-speed Internet services at prices comparable in rural areas to those in urban ones. The authority must complete this mission by December Specific goals of the authority include: Ensure the availability of local, dial-up Internet access statewide by August 2001 Inventory the state s technology infrastructure and identify areas of need by November 2001 Establish two model telecenters by January 2002 Make high-speed Internet access available statewide by December 2003 Promote the use of computer devices and the Internet throughout the three-year-long initiative The authority commenced work January Though not quite midway through its tenure, the authority already has completed three of its major goals and is well on its way to accomplishing the other two. Utilizing Community, Business and Political Leaders On the statewide level, the commission created seven standing committees to help undertake the work of the authority. Volunteers from both the public and private sectors joined each of the committees, helping to ensure that all viewpoints are assessed. More than 200 people worked on these committees in 2001 and On the local level, the authority initiated its e-champions program in November Appointed by county managers, e-champions act as local technology champions, and are responsible for assessing the technology needs of their counties. Of North Carolina s 100 counties, 94 counties and the Eastern Band of the Cherokee chose to join the program. All participants were responsible for establishing steering committees. These local committees range in size from six to 60 locals. Local, dial-up Internet access available statewide Before the August deadline, the authority conclusively announced local, dial-up Internet access was available statewide. The authority came to this conclusion by surveying Internet service providers and determining for which exchanges they could provide service for the cost of a local telephone call. Instead of only surveying providers in North Carolina, the authority also surveyed providers in Virginia, Tennessee, Georgia and South Carolina, and found that citizens from a border area sometimes could be served by ISPs in other states just as cheaply, if not more so, than by ISPs within North Carolina. By visiting the authority s Web site, citizens can access the online database of Internet service providers. Citizens enter their phone number and access a list of all the ISPs from which they can obtain dial-up access for the cost of a local telephone call. Technology infrastructure inventory complete Completed in November 2001, a technology infrastructure inventory identified and documented the telephone, fiber optic and cable lines; transmission towers and satellites; and other telecommunications and technological devices that make Internet access possible. The assessment highlighted pockets of need across the state, helping the authority to define its next steps. According to the inventory, the last mile simply does not exist in some areas, particularly the Northeastern and Western parts of the state. The authority created a searchable Geographic Information System map of the state s technology infrastructure on its Web site, where individuals can find out what types of Internet service are available in their areas. The maps serve as a marketing tool for economic developers, who can show businesses looking to relocate what their communities have to offer in terms of technology. The study is the most comprehensive of its kind in the nation and has helped the authority, citizens and service providers to determine where the areas of critical need are located, allowing them to move forward with plans to provide improvements.

3 Connecting North Carolina to a Better Future p. 3 of 6 Four model telecenters established By working with local governments to maximize grant funds to communities, the authority exceeded the legislature s goal of creating two telecenters, or technology hubs within communities, by creating four. By January 2002, the authority had allocated nearly $2,300,000 and telecenters had opened to serve 13 of North Carolina s most economically depressed counties. The telecenters provide high-speed Internet access, training and other technological resources to individuals, businesses, local governments and nonprofit organizations, including video teleconferencing, Web site design and e-commerce capabilities. The telecenters provide training programs to prepare local people for higher-skilled jobs and are equipped to contract with private companies, allowing work to be done from the center, either by contracted or full-time local employees. They serve as models for the state and nation. Ensure high-speed Internet access statewide The authority is working toward this goal through a variety of methods, including: Supporting a fledgling professional organization for Internet service providers, the North Carolina Coalition of Internet Service Providers Providing a high-speed Internet service request for citizens to file Working with the telecommunications industry to bring service to underserved areas Working with e-champions to develop county-specific plans to extend high-speed Internet access and training to underserved areas of their counties and agreeing to set aside $2.5 million in grant funding for these programs Offering $8 million first-round and $2 million second-round funding for connectivity incentive grants to speed the rate at which private carriers are taking high-speed Internet service to rural areas With the submission of the e-champions plans to the authority in May 2002 and connectivity incentive grants in July 2002, a new phase in the effort was marked, and the authority is now well on its way to ensuring statewide connectivity by December Promote Internet and computer use Months in the making, the authority kicked off its statewide, public education and outreach effort, the e- NC Initiative, in September The initiative is responsible for all public communications, including spreading the word about the benefits of Internet use and available funding to bring the Internet to local areas through the media, constituent groups, speakers bureaus, targeted publications, public gatherings and the online community. The authority sees education and public access as keys to getting people to choose to go online. As a result it has invested $670,000 in Internet and computer literacy grants and $950,000 in public access sites grants. Significance to the Improvement of the Operations of Government The authority s efforts mean the improvement of government operations at the most fundamental level: the state s ability to effectively interact with and help its citizens. On a practical, local level, the authority has worked with county governments to improve services: County managers have acted as grant administrators and applicants for the e-communities program. Telecenters involved local governments early on. For example, the Town of Sparta and the County of Alleghany together purchased the building that will be the permanent site for the telecenter in Alleghany County. Web sites created by e-champions and their steering committees have listed both public and private services offered in their county. County governments have gotten involved in the process of identifying pockets of need in their area and approving plans to address those needs.

4 Connecting North Carolina to a Better Future p. 4 of 6 To measure the electronic readiness of local governments and government entities, and to assess their use of computer networks and applications, the authority commissioned an E-government Survey, which is being used to promote the development of government Internet applications to make citizen interactions with government services easier and more convenient, and to facilitate the delivery of more comprehensive programs, including training, education and healthcare. The proliferation of fiber optic assets and network connectivity in rural counties offers local governments the opportunity to conduct more of their activities online. Access to the information highway and the ability to use it means more citizens will have fast, immediate access to state programs and processes, including economic incentive programs, education and academic curricula from the elementary to postgraduate levels, legal and administrative processes and other communication. The operation of government improves with every individual that crosses the digital divide. Benefits realized by service recipients, taxpayers, agency or state The benefits of the work of the authority include improved access to high-speed Internet service for citizens, improved economic development opportunities, enhanced quality of life for citizens, and a bettereducated, more technologically skilled work force in North Carolina. The entire state - both citizens and government - will reap substantial rewards from these efforts. Each of the items described below are examples of the many benefits the authority has generated in the pursuit of its mission to cultivate the demand, supply, access and training necessary to maximize the Internet s presence in and impact on rural North Carolina. Research: The e-health survey will assess the online readiness of hospitals, and public and private health care groups, to help determine what steps need to be taken to improve patient services. The e- government survey also documents which counties have Web sites. The authority will then determine how to help those counties with better citizen service. An e-agriculture survey is defining the online readiness of farmers in the state of North Carolina. The citizen survey comes in two waves, one begun in 2001 and nearing completion, and another to be completed in E-NC s citizen surveys build on questions asked in a 1999 citizen survey conducted by the Governor s Office of Science & Technology and East Carolina University. As a result, the authority not only will be able to establish benchmarks, but also to show five years worth of differentials and data. E-business workshops: Through six workshops held in Western North Carolina, the authority and partner organizations helped to train small business owners on the business-growing potential of the Internet and the many resources it makes available. The authority also created and distributed e- business manuals to attendees, and by request. Workshops will be held in Eastern North Carolina this fall. Geographic Information System (GIS) Maps: Using the results of the technology infrastructure inventory, e-nc created searchable, GIS maps on its Web site showing the availability of various types of technology infrastructure statewide. This information has helped citizens, as well as interested public and private concerns, to look at the distribution of technology infrastructure and network assets across the state, indicating areas of need, demand and opportunity. Telecenters: Grants awarded to four North Carolina counties helped establish model telecenters that serve as technology hubs, bringing a range of high-speed Internet services to these rural communities. Public Access: In June 2002, the authority made available $950,000 for Public Access Site Grants. Counties that have successfully completed the authority s e-communities program are eligible to receive a portion of these funds to develop or expand public access sites as the first step in the implementation phase of the e-communities program. Low-cost, Digital Literacy Training: High-speed Internet access and computer training, particularly for workers displaced from jobs in the manufacturing, industrial and agricultural sectors, is helping citizens obtain higher-paying, skilled jobs in a variety of industries. This retraining is critical to the economic development of distressed regions that have suffered high unemployment as a result of layoffs and the

5 Connecting North Carolina to a Better Future p. 5 of 6 closing of many plants and factories across North Carolina. As part of its Digital Literacy Training Program, the authority has made $670,000 in grants available to assist public and private organizations in establishing or sustaining free or low-cost Internet training programs in rural communities across North Carolina. Connectivity: The authority has earmarked $8 million of its $30 million operating budget for Connectivity Incentive Grants, which will help support projects designed to stimulate both the supply and use of highspeed Internet services in rural areas. The authority expects to announce grant awards in late August Telecommuting: Working from home or from a telecenter allows many citizens to remain in their home community instead of relocating to the crowded urban centers. NC TechForce: Made up of student volunteers from communities across North Carolina with an interest in the Internet and computers, NC TechForce offers technical assistance that might not be available otherwise in local communities. These volunteers help citizens, nonprofits, government units and businesses primarily those in rural areas to learn about the Internet and use it more effectively. In return, students receive up to $1,000 per year in scholarship funds. Business development: The cultivation of high-speed Internet access and use is expected to help stem the flow of citizens, particularly young people, away from rural areas, and to prepare these communities for the economic opportunities of the future, which will require basic technological skills and readiness. Public awareness: Media advisories, press releases, print and online press kits, bylined articles, a private media call-in line, op-ed pieces, video b-roll, together with numerous printed collateral pieces targeting various audiences and a branding campaign promoting the e-nc Initiative and its goals, were key in generating awareness and interest in the work of the authority and the ways that citizens and private interests can take advantage of its services. Aggressive, sustained media relations efforts have resulted in more than 32.5 million impressions in the media marketplace, more than four times as many impressions as there are people living in the state of North Carolina. Keeping the authority s efforts and the benefits and uses of the Internet in front of North Carolinians through the media and targeted marketing materials has helped to educate citizens and generate support for the effort statewide. Return on Investment As the Rural Internet Access Authority s $30 million in funding was committed by a nonprofit organization, MCNC, its benefits comes at no cost to the state or taxpayers. Tangible returns on the investment of funds include: Short term 2,800 volunteers statewide Active e-communities efforts and e-champions in 94 of North Carolina s 100 counties, and in the Eastern Band of the Cherokee 29 chapters of NC TechForce Four telecenters operating in regions with the most critical need Cash or in-kind contributions received from 52 supporting organizations in a variety of sectors, including education, telecommunications, medicine, media broadcasting, banking, retail, pharmaceuticals, engineering, law, government, agriculture, economic development and utilities ISP database on the e-nc Web site has received 8,076 hits Survey data being used by private companies to evaluate the demand for high-speed Internet network infrastructure in specific areas 116 responses from groups across the state when asked to submit information on Internet connectivity projects 624 requests for high-speed Internet service registered on Web site 39 proposals received for public engagement grants 64 proposals received for public access site grants 65 proposals received for digital literacy training grants

6 Connecting North Carolina to a Better Future p. 6 of 6 Public awareness efforts through the media have produced more than 32.5 media impressions to date. These impressions translate to more than $860,000 in value, representing a 6:1 return on investment Nearly 2 million hits to e-nc Web site since launched in late September 2001 More than 200 public forums held across state with attendance ranging from 10 to 160 people 155,178 hits to Geographic Information System (GIS) maps, which display technology infrastructure statewide, on e-nc Web site in eight-month period 10,375 responses to survey regarding citizens uses and perceptions of the Internet More than 700 attendees at the 2001 Rural Partners Forum, at which Internet access was the headlining topic About 500 attendees came to the kick off of the e-nc Initiative in September small business owners, representing more than 14 industries, educated during five e-business workshops 1,800 posters indicating why to go online have been hung at JobLink centers, unemployment offices, community centers and libraries across state PSA program rolled out in May 2002 has started generating calls Nearly 20,000 e-nc brochures distributed to potential volunteers and supporters 6,000 letters and leaflets distributed to the faith community through partnership with faith leaders About 5,000 annual reports distributed to state legislators and government leaders as well as other supporters Electronic newsletter distributed to nearly 100 North Carolina Coalition of Internet Service Providers members and potential members The four telecenters have registered more than 5,996 public access site users and trained more than 1,124 people 52 ISPs in attendance at last meeting of the North Carolina Coalition of Internet Service Providers, an organization fostered by the authority; the purpose of the trade association is to enhance the quality of service to and from ISPs, and to move ISPs and users from dial-up to high-speed Internet access Long term A 10% increase in companies looking to establish new operations in rural areas as a result of the availability of broadband network access and a trained work force At least 85 of 100 counties with affordable, high-speed Internet access At least 40% increase in citizens accessing high-speed Internet services Conclusion The authority is doing the critical advance work necessary to expedite the changes needed for government to provide its services equitably - giving all citizens equal access to high-speed Internetbased education, training, employment and commercial opportunities, and increasing their participation in the democratic process by erasing the digital divide between rural and urban areas in North Carolina.