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RURAL POLICY SYMPOSIUM
In 1995, a consortium of rural-oriented organizations at Kansas State
University initiated a Rural Policy Symposium. The process was led by the Kansas
Center for Rural Initiatives and included several key off-campus stakeholders. The
initial symposium was so successful that this has become an annual event.
Purpose:
The symposium is held annually to build on the knowledge base which exists for
policy issues, identify emerging policy concerns for Kansas, and understand the key policy
questions and issues which can then be supported by policy research.
The following is a policy paper based on the 1999 symposium. You are welcome to
download and print this document. If you would prefer a preprinted hard copy, send a
$5 fee for copying, postage and handling payable to the Huck Boyd Institute and mail to:
Huck Boyd Institute
216 Call Hall, KSU
Manhattan, KS 66506-1604
Growth Towns or Ghost
Towns?
The Future of Telecommunications
and
Rural Kansas
Ron Wilson
Huck Boyd National Institute for Rural Development
Joy Gieseke
Kansas Center for Rural Initiatives
Sylvia-Linda Kaktins
Kansas State University
Summer 2000
Table of
Contents
Foreword
Executive
Summary
Policy
Recommendations as of Summer 2000
Fifth Annual Rural Policy Symposium
1999
Welcome
Speaker: Jason Heinrich, Student Body President
Greetings
Speaker: Cy Moyer, Huck Boyd Foundation
Opening Comments
Speaker: Carol Peak, Kansas Center for Rural Initiatives
Session 1 - Information
Technology in Kansas: One Vision or Many?
Speaker: Dr. Beth Unger, K-State Vice Provost for Technology
Session 2 - Major
Initiatives in Kansas: How Do They Relate to the Visions?
Speaker: Rich Bendis, President of Kansas Technology Enterprise Corporation
Session 3 - Telecommunications.com:
How Do We Pay For It?
Speaker: Hank Buchanan, Rural Telephone Financing Cooperative (RTFC)
Session 4 - A State
Model
Speaker: Tony Crandell, Iowa Communications Network
Session 5 - The Y2K
Session - Funding and the Future
Speaker: Kent Glasscock, Majority Leader, Kansas House of Representatives
Session 6 - Partnership
Models
Speakers: Kent Sinclair, Garden City Information Technology Cooperative
Greg Smith, Pratt Telecommunity Center, Pratt, KS
Session 7 - Why is
Telecommunications Technology Crucial to Me? Who Should Pay / Who Should Take the
Risk?
Moderator: Ron Wilson, Director, Huck Boyd National Institute for Rural Development
Panelists: Ned Webb, Community Development, Kansas Dept. of Commerce and Housing; Charles
Ranson, President of Kansas, Inc., Topeka; Don Moler, League of Kansas Municipalities,
Topeka; Mark Bannister, Fort Hays State University; Ron Marnell, Multimedia Cablevision
(now Cox Communications), Wichita; Rich Porter, Rancher, Reading; Roger VonFeldt, Rural
Telephone Company, Lenora
Session 8 - Policy
Recommendation -- Wrapup and Adjourn
Speaker: John Allard
Foreword
On December 7, 1999, a consortium of groups
interested in rural development conducted the fifth annual rural policy symposium. Since
1995, these groups, under the leadership of the Kansas Center for Rural Initiatives, have
collaborated to put on symposia at Kansas State University which address emerging rural
issues of the day.
This year, for the first time, we are
producing a written report which summarizes issues, highlights, and recommendations from
the symposium. This is not a proceedings, but rather an executive summary followed by an
outline of key points made by the speakers. We apologize if our records or interpretation
of points made by the speakers were incomplete or incorrect. The authors of this report
have taken the additional step of proposing policy recommendations based on the symposium.
These recommendations are solely those of the authors and should not be construed as an
official position of the sponsors or of Kansas State University. In keeping with the
technology topic which was the focus of the 1999 symposium, this report is also available
via the world wide web. It may be accessed at http://www.ksu.edu/huckboyd/symprprt.
The purpose of the symposium was to build on
the knowledge base which exists for policy issues, identify emerging policy concerns for
Kansas, and understand the key policy questions and issues which can then be supported by
policy research. Invited participants in the symposium included legislators, city and
county leaders, agency representatives, higher education representatives, and public and
private sector leaders from across the state.
We would like to thank the following colleges
and organizations which provided support and contributions for the 1999 symposium:
Huck Boyd Foundation
Huck Boyd National Institute for Rural Development, K-State
Kansas Association of Counties
Kansas Center for Rural Initiatives, K-State
Kansas, Inc.
Kansas Rural Development Council
K-State Research and Extension
League of Kansas Municipalities
Office of the President, K-State
Southwestern Bell
K-State Co-Sponsors:
College of Architecture, Planning, and
Design
College of Arts & Sciences
College of Education
College of Engineering
College of Human Ecology
College of Technology and Aviation
College of Veterinary Medicine
Division of Continuing Education
KSU Libraries
Rural Activities Council
The symposium was transmitted in real-time
via videoconference to the Huck Boyd Community Center in Phillipsburg, Kansas. Thanks go
to the Huck Boyd Foundation Board and staff for providing this opportunity for rural
western Kansas citizens to participate electronically.
Special thanks to Jerry Marrow and Fred
Damkroger of KSU Telecommunications for technical production of the videoconference, to
KSU Interim Associate Vice Provost for Information Technology Mel Chastain for his
thoughts and insight, and to Dr. Beth Unger for her leadership and vision in
telecommunications for Kansas.
- the authors
Executive
Summary
Overview
Information technology is the wave of the
future. Rural Kansas can either ride the wave, or be swamped by it. Our vision is that
every citizen of Kansas should benefit from the global digital revolution in information
technology.
Rural communities in Kansas and the State
itself must take advantage of this technology. Without it, Kansas communities are at risk
of becoming ghost towns. As the pace of change accelerates, there is a "Digital
Darwinism" at work. Those using the new technology effectively are progressing in
relation to those who are not, or who do not have access to such technology.
Information technology has great promise for
rural America. It means that citizens are not place-bound, in the sense we have
historically known that term. Rural people can interact with people and businesses around
the world through the Internet. For citizens, schools, businesses, communities, and
families, this technology can offer improved quality of life. It also can be a means of
local economic development.
Information technology is both a challenge
and an opportunity. Some rural communities are falling into the category of technology
"have-nots," due to issues such as population densities which limit service,
lack of infrastructure, and costs of telecommunications access. Others point to the
opportunities which exist. They contend that community leaders should ignore the 'rural
whine' and concentrate on what can be done now. In this view, adequate infrastructure is
in place to begin. It is a matter of taking advantage of these opportunities and finding a
niche in e-commerce or e-business.
The 1999 Rural Policy Symposium produced a
call for a comprehensive strategy to move Kansas into the forefront of information
technology. Educational institutions, state agencies and other organizations appear to be
taking the lead. Groups such as the Kansas Information Technology Action Committee (KITAC)
and proposals such as KAN-ED are seeking to create an integrated state network to provide:
Higher quality education and careers,
Greater competitive position for Kansas,
Higher paying and high skilled knowledge jobs,
Equal access to electronic information and services, and
Life long learning.
These are vital needs. However, symposium
participants also identified several key barriers to effective planning and
implementation:
Time -- Is there time to
work out a long-term plan?
Funding -- Is there money to pay for it?
Accessibility/content -- Can such information be made user-friendly and
generally accessible?
Demand -- Will enough demand exist to pay for investments in technology
and infrastructure?
There are barriers to sharing resources and
working cooperatively. The industry is highly competitive and rapidly changing. Smaller
companies see the bigger companies as part of the problem. Information technology support
services for users are not adequate in the field. Citizens in some communities are
resistant to change.
Private sector representatives at the
symposium seemed not so concerned with the need for a comprehensive strategy. This view
could be summarized by one of their comments: "Time is of the essence -- just do
it." Furthermore, some are concerned by proposals that would favor educational or
governmental institutions at the expense of the private sector.
Some believe the demand for greater access
and local capacity will force telecommunications suppliers to supply the infrastructure.
However, there are significant questions as to how this will be accomplished. Is it
necessary to have "dark fiber" (unused bandwidth capacity) built into costly,
low density rural areas, or can wireless/cellular/satellite alternatives meet the need?
There are also questions on how and through whom the telecommunications infrastructure
will be financed and paid for.
The KAN-ED legislation was a specific
proposal to provide additional Internet connectivity to schools and libraries. The authors
note that even this modest proposal was unable to be enacted during the 2000 legislative
session.
There is need for creative leadership,
vision, comprehensive planning, cooperation, and accessibility to information. Two
perspectives were articulated at this symposium on the best approach to meet this need: a
governmental/institutional versus private business approach. The challenge is not just to
recognize that these dichotomous views exist, but to build bridges between different
viewpoints and identify ways to work together.
A number of policy options were discussed at
the symposium. Now it is time to advance these policy options to action.
Based on many of the comments at the
symposium as well as subsequent months of consideration, the authors propose the
recommendations outlined in the following section.
Policy
Recommendations as of Summer 2000
Visionary leadership is needed to lead the
effort to create a new generation of telecommunications technology that will serve in the
entire state. Kansas is falling behind our neighboring states. We should build on the
experience of others to close the "digital divide" for rural Kansas.
In 2000, the KAN-ED legislation did not pass
the state legislature. A more effective, more circumspect version of such legislation
should be enacted in 2001.
Experts indicate that Kansas cannot address
the telecommunications infrastructure needs on $12 to $17 million, which was the estimated
cost of KAN-ED. These experts believe it may take $120 million to provide the SAME
bandwidth (access) to every Kansas school, town, and county seat ... and refurbish
community college and 4-year institution bandwidth at the same time. Iowa chose to build
its own system and avoid large annual line charges from the common carriers. Other states,
like North Carolina, just told the common carriers to build the system and send government
the bill. And there are lots of combinations in between. None are cheap. But neither is a
comprehensive highway system, which Kansas has been willing to fund. If we think we're
killing rural Kansas by not maintaining and upgrading our highways and bridges, then the
same is true with the "information" highway and bridges.
We believe there is not a "one size fits
all" approach to telecommunications or other rural development issues. Several tracks
should be pursued to address telecommunications needs.
Kansas should pursue a long term,
comprehensive plan for telecommunications, while recognizing the contributions of
entrepreneurs in the private sector. Private sector investment is vital. There is no
substitute for the long-term investment and maintenance of private sector
telecommunications companies. Interconnectivity must come about, but there is a need to
assure that interconnectivity is accessible by the private citizen. The plan should be
based on an inclusive vision of the future, with a goal to assure that every Kansan has
access to modern telecommunications technology. Not only is universal service an issue,
but there should be a policy commitment to assure that such access is affordable to the
citizenry at large.
The State should consider the big picture of
information technology. Alternatives to dark fiber, such as wireless/cellular/satellite
communications should be considered in rural areas. There should be an investment in
advanced infrastructure, but waiting for such an investment should not be an excuse for
individuals or policymakers to delay. There are already many opportunities to use existing
technology.
Websites that are simply electronic versions
of a brochure are just the beginning. Similarly, e-commerce is only one component of the
equation. The full scale of business-to-business electronic relationships (e-business)
should be explored.
One example of a private sector approach to
bandwidth delivery to small and rural towns is utilizing cable television. For example,
WebTV is a cable television-version of Internet access. The bandwidth made available by
that approach would leapfrog the information have-not's past those who have access. Cox
Communications, which serves 57 communities in Kansas, is connecting its individual
community-based receiving and distribution systems with fiber-optic cable. Thus, the
potential for a "wired" Kansas could be realized through various approaches.
The Internet represents both a tremendous
challenge and a tremendous opportunity for our rural communities. A major initiative
should be pursued to enhance technology, education, and electronic commerce in our State.
This might include public-private partnerships to provide adequate bandwidth to every
community in the state, funding to enhance distance learning capacity, and additional
training and development relating to electronic commerce. Subsidies should go to users
rather than telecommunications companies, just as the GI Bill provided funding to
prospective students rather than to schools.
Simply building a bigger pipe is not enough.
There should be outreach to citizens to assist them in utilizing this electronic
technology. An educational effort is needed to help the public better understand the
opportunities, benefits, and costs of this technology. The state could hire
entrepreneurial experts to go from community to community, helping citizens and businesses
to utilize the Internet effectively.
The state and federal government should
invest in additional research and development. Results of this research should then be
extended to the people, just as the Extension Service conveys research-based information
to the people regarding agriculture, family and consumer sciences, youth and community
development. The State should provide funding for K-State Research and Extension to
utilize and expand its extension network to bring information on the Internet and other
information technologies to citizens across Kansas.
The pace of change will continue to
accelerate. The State cannot realistically expect to control these changes, but should
instead be an agent of change with the needs of rural Kansas in mind. Several insights
were offered in the 1999 Rural Policy Symposium on how state agencies, private businesses,
individual citizens and other entities can be agents of change for this purpose. The
following is a summary of the sessions in the symposium.
Fifth Annual Rural Policy Symposium 1999
The Future of Technology and Rural Kansas:
Growth Towns or Ghost Towns?
WelcomeWelcome: Jason
Heinrich
Student Body President, Senior in
Industrial Engineering from Great Bend. Will be attending graduate school in London.
On a recent summer, he worked on grandpa's
farm. Grandfather saw no need for a computer. Jason's brother showed his grandfather how
the computer could be used for financial, advertising, Internet purposes. By the next
summer, grandfather had one.
Jason worked with Ernst & Young in St.
Louis during the summer of 1999 regarding the telecommunication industry
(telecommunications, computers and high-band technology).
Information technology is critical for
economic and social needs of Kansas -- for business and students to keep up with the
global economy, be competitive and retain high standard of living
Greetings:
Greetings: Greetings: Cy
Moyer
Representing the Huck Boyd
Foundation - making comments via videoconference from the Huck Boyd Community Center in
Phillipsburg, Kansas
Advanced telecommunications is needed in
rural KS so people can communicate within the state without traveling
Communities need to upgrade, understand and
use technology to strengthen themselves so as not to become ghost towns. This symposium is
a good example.
Opening CommentsOpening Comments:
Carol Peak
Director, Kansas Center for Rural Initiatives, KSU
The symposium planning committee's
intent was not to restate the issues nor to provide a cheerleading session that rural
communities need to be wired, BUT is driven by a concern over how they are to be wired.
The State must plan in a cohesive manner.
Wide bandwidth is needed. Rural connections
should serve not only lone eagles, but all citizens should have access for communications
and business.
Session 1 -- Information
Technology in Kansas: One Vision or Many?
Speaker: Dr. Beth Unger
Dr. Beth Unger's presentation can be obtained at http://www.ksu.edu/vpast/huckboyd/index.htm
Small rural communities are some of Kansas's
greatest treasures and they need the assets to compete in the information age with
appropriate infrastructure and information technology.
A vision of Information Technology (IT) is
needed similar to Rural Electrification - provide and support infrastructure and support
services
The Internet is a challenge and an
opportunity (For distance learning, accessing resources such as a virtual digital library;
electronic commerce) and requires additional investment.
All sectors of Kansas need access.
Public/private partnerships will be required.
There is concern over the fact that, despite
many efforts, no comprehensive plan is in place.
The growth in information technology is
unprecedented. There is an opportunity to leap over older technology and move to the
forefront, but it needs to be done quickly or we shall be left behind.
Various visions of IT's future have been
formulated. For example:
Political/governmental/administrative
perspectives.
In the late 1980's, the State's Division of
Information Systems and Communications proposed changes that were
Far-reaching, comprehensive, and used latest
available technology. This was controversial in some quarters because it was so
comprehensive, forward-looking and (to some) expensive.
KANREN, Kansas Research and Education Network
Services state education system
Internet 2 links 137 research
units/institutions
INK - Information Network of Kansas
In the 1990's, a proposal was made (but not
funded) called "Kansas - A Learning Community." This proposal included K-12
schools, higher education, state government, the private sector, and local communities.
Although it was not funded, this effort and others combined to create several
"spin-offs" activities, including: Creation of a state-wide administrative
approach to IT infrastructure issues, design, operation, policies and procedures,
including: the State Chief Information Architect (CIA); the Kansas Information Resource
Council (KIRC); and the Information Technology Advisory Board (ITAB).
Mid-to-late 90's - After consultant studies,
the current system of three information architects is established. The initial thrust was
policy, procedures and compliance. State architecture standards were established, which
were important in terms of inter-operational versus protocols for communities and
parameters for operation.
Vision: Technical/Engineering
1989 - The High Southwest Plains Network
(HSPN) was formed. Private phone companies and clusters of local Internet service
providers enabled specifically-interconnected public schools.
Late 80's - The Star Schools project placed
135 Ku-band analog satellite dishes in public schools, community colleges and regents
institutions.
1990 - The Greenbush Educational Service
Center followed with an analog network serving SE Kansas.
Spring '91 - Universities cooperated to get
five units of CODEC equipment. Over the next 3 years, 40 additional CODEC's are purchased,
and an operational video network realized. CODEC video became the connective tissue
between the analog and digital fiber networks and the satellite systems.
Mid-90's - The Governor and Southwestern Bell
agree on the "TeleKansas", and "TeleKansas II" initiatives, in
exchange for non-state intervention in telecom rates. The effort to provide higher
bandwidth to K-12 schools is less than successful. Still, there is no encompassing
State-wide Plan to date.
Change is occurring at an unprecedented rate
What is needed now is a Comprehensive,
Collaborative Plan, and Commitment from all to put it in place.
The change in Information Technology Is
Occurring Exponentially ...
To reach 50 million users, it took:
Radio...50 years
Television...14 years
The Internet (w/ the Browser)...only 4 years
E-commerce is growing 1,000% per year
There are about 8 Billion Internet Addresses (URL's)
Ever-Increasing Demand for Data Transfer over
the Internet...
Demand growing at a rate of 1,000% per year
Internet Demand:
by Y 2002, will consume 94% of worldwide telecom capacity
by Y 2005, will reach 99%
Point-to-point, dial-up conversation will be an incidental component of demand...not
including data compression technology.
Internet Growth is the Result of Explosion of
E5 Uses...
E-mail and other forms of communications -
chat rooms, live chat.
E-commerce - holiday season shopping is
showing a shift from traditional to e-com.
Education and training -
For example, K-State is involved in a Plant
Pathology course where three professors at different universities came together and offer
a course without a text book. Students used current research papers, video streams and
watched professors debate issues. This represents a way to bring expertise together that
not currently available
Entertainment - delivery of movies in the
future?
Edification - defined as "Intellectual,
moral, or spiritual improvement; enlightenment." The Internet can make it possible to
visit the Louvre in Paris without ever leaving home.
Sectors needing service:
Business and Industry
Education, Libraries, Museums
State and Local Government
Communities-especially rural / rural residents may need more assistance to begin
Citizens
Components of Comprehensive Plan
Delivery system
Providers of services - ISP, etc.
Access devices, computers,...
Assistance for Users - to learn
Content
Kansas has a Great Divide -- There are many
computers in high school but they do not have Internet access nor are they interconnected.
By one measure, Kansas is first in the nation in terms of numbers of computers but 34th
in terms of interconnectivity.
Collaboration will be the key...
34 states have comprehensive state-wide IT
structures in place or on the drawing board.
43 states are members of multi-state telecommunications consortia.
If Kansas is to compete successfully, we must collaborate.
We must each adopt a circumspect viewpoint
...
Leaders from telecommunications and
government should collaborate on a delivery system that favors Internet access at a fair
price over competition and short-term profits ...
Educators at all levels should extend
intellectual discourse by democratizing access by all to the global body of
knowledge...regardless of location or station in life...
Business leaders who brought industry to
Kansas for its intrinsic values can remain here and prosper...for the same reasons.
A current vision of merit: KAN-ED
Proposed by KITAC: Kansas Information
Technology Action Committee
KETAB: Kansas Education Technology Advisory Board
Current participants
State and Regents Library System
State Board of Education
Organizational entities
KANREN/KANS-A-N/DISC/Dept of Education
KAN-ED: The Vision
"As we enter the 21st century, every
citizen of Kansas should benefit from the global digital revolution in information
technology. To achieve this vision, all Kansans should be provided with the opportunity,
training and resources to use and exploit electronic information and technologies for
their betterment now and in the future."
The Consequences:
Without uniform access to Internet services, Kansas businesses are unable to:
uniformly attract customers and clients
worldwide on the Internet
work cooperatively to market their goods and
services to the world on the Internet
conduct efficient e-commerce
interactions with the global market place on the Internet
The Consequences:
Without uniform access to Internet services, Kansas citizens may be:
disenfranchised
deprived of information essential to
bettering themselves or maintaining their professional prowess
unable to maintain or enhance their
communities economic and population base
Potentially the greatest consequence:
Under served rural communities may miss
the chance to compete in the growing IT service industry!!
What is needed now is a Comprehensive,
Collaborative Plan, and Commitment from all to put it in place to capitalize on a great
treasure and asset: rural Kansas communities.
Session 2 - Major
Initiatives in Kansas: How Do They Relate to the Visions?
Speaker: Rich Bendis, President of
Kansas Technology Enterprise Corporation
The slogan for some companies could be
"E-com or bust."
"Digital Darwinism" is being
experienced as rapid adaptors are seizing the advantage over others.
Rural towns may have more control over their
destiny than think they do. For example, Linda Kats of Garden City, Kansas set up a
website for her family advertising tumbleweeds for sale as a joke. The website generated
orders, and is a small example of value-added agriculture. It suggests that there are
opportunities for using the Internet for innovative marketing of products from rural
areas.
The pace of change is accelerating:
A human being can travel to any place on
earth in less than 24 hours. You can move information anywhere at the speed-of-light-- the
fastest speed known to mankind.
Distance doesn't matter like it used to. The
accelerating pace of change causes tremendous compression of time.
This means we must do more than change -- we
must change the way we change.
Laws of Infinite and Zero
The technologies of chips and fiber are
racing toward infinite capabilities at zero costs:
20 years ago a MIPS* cost a quarter of a
million dollars
10 years ago a MIPS cost $500
This year, the retail price of a MIPS will
drop below a dollar
The price of bandwidth is going down and may
soon sell for a slow as a penny an hour
*Million Instructions Per Second - a measure
of computer processor speed
There is a Communications Revolution going
on:
Today 50,000 people will sign up for Cellular
phone service,
148 Million people will hop on the Internet,
900 million voicemail messages will be left
(not necessarily returned),
In the time it takes to read this, 5 million
e-mails will be sent.
Information Dynamics
"There has been more information
produced in the last 30 years than during the previous 5,000."
"The information supply available to us
doubles every 5 years." -- Richard Saul Wurman
Did this process reduce the use of paper? No,
it increased it.
Electronics offer unlimited data storage
capacity.
Kansas Facts:
population - 2,629,067 (32nd)
Average Annual Income $25,896 -- which is
about $2,500 less than the national average
Technology Support: Kansas ranks 5th
in per capita investment in science and technology.
Gross State Product = $68 Billion
Economic Overview:
Kansas is a small business state.
73,716 businesses in state.
64,888 have 19 or fewer employees.
only 161 companies have more than 500
employees.
It is important to Kansas, and especially to
rural communities, to make sure small business continues and diversifies.
Kansas Economic Development Organizations
Why was KTEC Created?
In the mid-1980's the 3 primary Kansas
industries - aviation, agriculture & petroleum - were depressed, resulting in
recession in Kansas.
An economic development study resulted in a
private/public task force which made 50 recommendations relating to policy and
organizational structure to diversify & strengthen the economy.
In 1986 the legislature enacted legislation
based upon these recommendations, thereby creating KTEC.
It has been13 years since the last integrated
economic plan. It is time for a new one, with the legislature as a partner.
What is KTEC?
A quasi-private entity created by legislation
in the State of Kansas in 1986.
A holding company which manages a portfolio
of programs, investments, subsidiaries & affiliates which operate as for-profit and
not-for-profit entities.
An equity or royalty investor in emerging
Kansas technology businesses.
How is KTEC funded?
Receives most of its funding from the
Economic Development Initiatives Fund which comes from the lottery & racing proceeds.
Also receives federal funding for specific
partnership technology programs.
Most of KTEC's programs require matching
funds & some form of private sector involvement.
Returns on KTEC's investments from equity,
royalty, license & service fees are utilized to subsidize KTEC's operation.
What is Unique About KTEC?
KTEC is a single entity responsible for all
science & technology programs in Kansas.
The private sector plays a major leadership
role.
Although created by government, KTEC has the
powers & functions of a private corporation with the ability to own equity and make
investments.
KTEC is bi-partisan, remaining strong thru
both Republican & Democratic administrations.
KTEC Mission:
To create, grow and expand Kansas enterprises
through technological innovation.
KTEC Goals:
Stimulate creation & commercialization of
innovative technologies.
Build a comprehensive financial network
willing to invest in technology-based businesses at each stage of development.
Improve the competitive research &
development capacity of Kansas universities & industry.
Create new and improved high-wage,
high-skilled job opportunities.
Make small-to-medium manufacturers
competitive in the global economy.
KTEC has generated a successful return on
investment:
$890 Million in increased sales
224 company start-ups
11,184 jobs created or retained
383 technologies developed
140 patents issued
2,240 inventors assisted
$986,927 royalty received
$815,410 equity returns
KTEC Program Structure:
Board of Directors
KTEC Staff - Federal Initiatives and
Partnerships
Three AreasThree Areas:
RESEARCH RESEARCH For Inventors, Entrepreneurs and
University & Industry Scientists
Advanced Manufacturing Institute (AMI)
Center for Design, Development &
Production (CDDP)
Information Technology &
Telecommunications Center (ITTC)
Higuchi Biosciences Center (HBC)
National Institute for Aviation Research
(NIAR)
EPSCoR
INVESTMENTS INVESTMENTS - For Inventors,
Entrepreneurs and New & Existing Companies
Small Business Innovation Research (SBIR)
Awards
SBIR Bridge Funding
State-Sponsored SBIR
Applied Research Matching Fund (ARMF)
ACE-Net
Ad Astra Funds I & II
KAW Holdings (KIC)
Wichita Ventures (WTC)
Manhattan Holdings (MACC)
Prairie Investments
Quest Ventures
KU Medical Center Research Institute Fund
Alliance for Technology Commercialization
BUSINESS ASSISTANCE BUSINESS ASSISTANCE -For Inventors,
Entrepreneurs, Scientists and New & Existing Companies
Kansas Innovation Corporation (KIC)
Mid-America Commercialization Corporation
(MACC)
Wichita Technology Corporation (WTC)
Mid-America Manufacturing Technology Center
(MAMTC)
Capital for Manufacturers (CFM)
Information Research Corp. (IRC)
Intern Program
Business Residency Program
Inventor Development Assistance Program
(IDAP)
High-Tech industries are important because
they usually offer high-wage jobs and could become the key industry clusters of tomorrow.
Kansas is a High-Tech State:
High-tech industries generate almost 20
percent of Kansas wages and almost 12 percent of Kansas employment.
High-Tech industries comprise a larger share
of the Kansas economy than do those of the nation as a whole.
Technology Infrastructure:
Connectivity will increasingly be the
difference between the 'haves' and the 'have-nots.'
Connectivity to Kansas businesses, schools
and homes seriously lags our neighboring states and the nation.
The existing basic infrastructure in Kansas
needs to be leveraged to connect our citizens.
Kansas Information Technology Action
Committee (KITAC)
It was recognized that there is no integrated
plan for the State, so KITAC was created to develop long-term strategies.
Mission:
To develop a long-term state strategic plan
which provides a virtual state infrastructure for business, government, and academia to
have full and equal access to operate efficiently, cost effectively, and competitively in
the global economy.
Initial Focus:
The organizing members of this committee have
determined that the Internet and Electronic Commerce should be the initial focus of the
Kansas Information Technology Action Committee. The areas of concentration will address
infrastructure, access, e-commerce, taxation, privacy, security, education and training.
Committee Leadership: collaborative not
competitive
Government
Don Heiman, Kansas Department of Administration
Dan Stanley, Kansas Department of Administration
Rich Bendis, Kansas Technology Enterprise Corporation
Academia
Jerry Niebaum, Board of Regents
Andy Tompkins, Kansas Board of Education
Duane Johnson, Kansas State Library
Business
Jo Hunt, Western Resources
John Voeller, Black & Veatch
Kansas Small Rural Business
Others to be invited
For more information see
http://www.ktec.com/kitac
Suggested List of Members - inclusiveness is
intended:
Governor's Office
Kansas Department of Administration
State of Kansas Information Technology
Executive Council (ITEC)
Rural Communities
Kansas Small Business
Business and Industry (Boeing, Black &
Veatch, Western Resources, Koch Industries, Hallmark, Western KS business, Southwestern
Bell, Sprint, Cable providers, ISPs, CISCO, etc.)
Kansas Inc.
Kansas Technology Enterprise Corporation
(KTEC)
Kansas Department of Commerce and Housing
(KDOCH)
Kansas Department of Transportation (KDOT)
Kansas Research and Education Network
(KANREN)
Information Network of Kansas (INK)
State Chief Information Technology Architect
(CITA)
Kansas State Library
Kansas State Board of Education
Kansas Board of Regents
Information and Telecommunications Technology
Center (ITTC)
Kansas Corporation Commission (KCC)
Legislative Joint Committee on Information
Technology (JCIT)
Legislative Research
State Independent Telephone Association of
Kansas
Governor Bill Graves -- pledged support
"The information and telecommunication
infrastructure is a priority for our state, but it will take business, academia, and
government working together to create a world class competitive environment".
Initial Priority:
KITAC recognizes that a major opportunity for
Kansas to become a leading knowledge economy is hampered by the lack of connectivity
between our schools, libraries, government agencies and industry.
Recommendation:
KITAC will work with the Kansas Department of
Education, Board of Regents, State Library, Division of Information Services and
Communications, and the Kansas Research and Education Network to implement the KAN-ED
network.
KAN-ED -- The Vision
As we enter the 21st century,
every citizen of Kansas should benefit from the global digital revolution in information
technology.
To achieve this vision, all Kansans should be
provided with the opportunity, training and resources to use and exploit electronic
information and technologies for their betterment now and in the future.
KAN-ED -- Overview
Between 1995 and 1998, information technology
producers accounted for about 8% of the nation's GDP, but contributed on average 35% of
the nation's real economic growth.
By 2006, almost half of the U.S. workforce
will be employed by major producers or intensive users of information technology products
and services.
In 1997, information and communications
technologies accounted for nearly 30,000 jobs in Kansas, making it the fourth largest and
fastest growing employment sector in the state's economy.
In 1997, Kansas ranked first in the nation in
the number of computers per 100 K-12 students, but Kansas currently ranks 36th among the
50 states in providing Internet access to the classroom.
KAN-ED -- Opportunity
The state of Kansas already has existing
government, academia, and private sector information technology resources.
These resources should be leveraged to build
an integrated and comprehensive information and communication technology network for all
Kansans.
Financial leverage of these resources will
require smaller investments by all stakeholders and quicker implementation
KAN-ED - Goals
The goal is to create an integrated state
network that provides:
Higher quality education and careers for all
Kansans.
Greater competitive position for Kansas.
More Kansans qualified for higher paying,
high skilled knowledge jobs.
Equal access to electronic information and
services.
Life long learning
KAN-ED - Benefits
KAN-ED will enable:
Statewide access to electronic databases
Aggregated subscriptions to on-line
periodicals and journals
Development of curricular materials for local
as well as statewide use
Shared instructors, especially in subject
areas where there is a shortage of certified personnel
Access to the wide variety of enrichment
materials available through government agencies such as NASA, EPS, and the Library of
Congress
Access to the informal sciences, arts, and
humanities education materials through museums
Provisions for customized training and
education to students of all ages
Increased opportunities for teacher
in-service training
Makes the infrastructure more affordable and
easier to maintain
KAN-ED - The Investment Recommendation
The state of Kansas should invest in a
comprehensive KAN-ED plan for providing Internet connectivity and technology integration
for all of its schools, libraries, and state agencies.
The major components of this investment
proposal are:
the network
network services, training, and content
KAN-ED management
the implementation plan and proposed budget
Note that the bill as it stands offers no
training for teachers. Therefore, benefits to students will be limited if teachers are not
trained.
The State will not be able to fund all of the
requests in the bill.
KAN-ED history:
The KAN-ED proposal will be submitted to the
2000 Kansas Legislature.
KAN-ED - Summary
Time is of the essence because:
Kansas is behind Missouri, Oklahoma,
Nebraska, and many other states.
The knowledge and technology gap for Kansas
is widening.
All stakeholders are willing to work together
now!
An investment in KAN-ED is critical to the
educational and economic future of all Kansans.
"It is the not the strongest of the
species that survive, nor the most intelligent, but the ones most responsive to
change." Darwin
QuestionQuestion: $17 Million for KAN-ED seems to
be a small amount compared to the monies required for highways, etc. Why not ask for
larger monies such as $100 Million to provide more meaningful access?
BendisBendis:
Indeed, the information highway is as
important as the transportation highway.
KAN-ED will make a strategic investment in
education.
As technology costs fall, this networking for
KAN-ED can be used to leverage more efficiencies in systems.
Asking for $100 Million would not be well
received in legislature
Question: Question: We are concerned about
interconnectivity among the networks in the state.
Bendis:
One does not need to be a leader of
innovation to be successful.
Be a 'fast follower' and compete and succeed
by leapfrogging existing technology.
Follow success and link and integrate.
If you are quick now you may trail later as
others leapfrog.
Session 3 - Telecommunications.com:
How Do We Pay For It?
Speaker: Hank Buchanan, Rural Telephone Financing Cooperative (RTFC)
Kansas has always provided leaders to nation
and to the telecom industry, such as Bob Dole, Bob Boaldin (Elkhart Tel), Larry Sevier
(Rural Service Tel. Coop) - Lenora, and Dick Veach (Pioneer Telephone) - Ulysses.
RTFC is a not-for-profit private financing
cooperative, a niche lender that serves Rural Utilities Service (RUS)-eligible telcos and
their subsidiaries, affiliates and partnerships.
$3.2 billion in loans outstanding -- focuses
on areas RUS doesn't finance.
Where is national policy on broadband
deployment??
FCC says competition is the solution and is
moving to make that happen.
The federal telecommunications act directs
that access to advanced services be available to all Americans at reasonably comparable
rates. It establishes a Universal Service Fund (USF) to support such access.
Rural Local Exchange Carrier (LEC) industry
wants to use the USF for broadband.
Is competition going to make this happen??
What are the odds that any Administration or
Congress will find the money?
Can technology make the act's goal a reality?
Rural America has a "last mile"
problem primarily -- how do we extend the existing telecommunications capacity the last
mile to reach more people? The issue is configuration of telecommunications architecture
to support advanced services.
In his opinion, the FCC has decided that more
USF is not going to happen.
The USF is considered to be high cost, but it
is still less than $1 Billion. In contrast, the schools & libraries fund hit $2.25
Billion by the second year.
Pending changes will reduce USF funds to
support the Public Switched Telephone Networks (PSTN) in rural America.
This bodes ill for getting advanced services
to rural Americans at reasonably comparable rates.
The FCC has thus far said that companies
purchasing Bell Operating Company (BOC) properties will get only the USF that the BOC got,
regardless of the fact that the BOCs had more densely populated areas to balance against
the higher cost rural properties but have lost them.
If FCC or Congress will not significantly
increase funding for advanced technology deployment in high-cost areas, what's left?
Rural states, with a less favorable mix of
high- and low-cost areas, cannot achieve rural/urban comparability without imposing
significant burdens on their lower cost subscribers -- that's when willingness to
subsidize others disappears.
"Only federal support for PSTN can
achieve the Telecom Act goal -- if PSTN is to be the vehicle."
What are the implications of competition?
Large cities and urban areas are being
overbuilt by competitive carriers with new fiber networks.
This is not happening in residential
suburbia, much less rural areas.
Price capped LECs are losing their best
customers in cities (to new, more lightly regulated competitors) and are dumping their
high-cost rural markets.
Where is the incentive for them to invest?
What about Public Sector Networks?
Require a large capital investment.
Need more traffic to be feasible.
Siphons business off the Public Switched
Telephone Network, which is then forced to increase its rates to cover increased costs,
which drives away more business, and so on -- It becomes a Death Spiral.
"I am all for schools and government
offices having access to advanced telecommunications services. But when it reduces the
likelihood of everyone else getting that same access, we have to pause."
The country seems committed to Public
Switched Telephone Networks, and don't see the public sector as an appropriate competitor.
The amount that a single state can do is quite limited.
There are really two questions about any
capital expenditure such as that for deployment of infrastructure to support advanced
services:
Is there Demand? According to the U.S.
Telecom Association, 25% of Kansans have Internet. Clearly people want access, and
increasingly access faster than a dial-up connection.
Will the market support the investment? For
example, Digital Subscriber Line (DSL) services will penetrate a market at various price
levels. Generally, the price for DSL in rural areas will not be competitive.
Is it all gloom and doom?
What are the other options?:
Cable: I live in Northern Virginia and my
cable operator just this year began offering cable modems and ISP service. Most rural
areas are not wired for cable TV.
Wireless: may be the savior of advanced
services to rural America.
Satellite -- now offering high-speed
connectivity -- one dish does it all. There has been significant aggregation of Direct
Broadcast Satelllite (DBS) licenses. "I believe Golden Sky and Pegasus see
opportunities in Internet access."
Local Multipoint Distribution Services - LMDS
(and other fixed terrestrial wireless):
Huge bandwidth
Cheap licenses
Personal Communications Systems (PCS)
Qualcomm announced it will produce advanced
wireless chipsets and software in 2001.
HDR (High Data Rate) technology provides
faster speeds.
Wireless phones or computer cards may have
2.4 megabytes of memory.
It is projected that there will be 30 MB and
200 CPZ products.
"We've done a lot of PCS lending, which
will help make PCS feasible in rural areas."
In summary:
There may not be one vehicle, but several
ways of addressing the issue.
Rural areas will probably lag urban areas in
such technology.
Bonding may make rural service more feasible
in cost. Perhaps service providers can piggy back on other advanced services such as
Entertainment TV.
In the end, it is always the consuming public
that must pay -- such as through greater taxes -- and it will be difficult to achieve
equity. Technology may also result in new and more appropriate options.
Session 4 - A
State Model: The Iowa Communications Network
Speaker: Tony Crandell, Iowa Communications Network
IOWA COMMUNICATIONS NETWORK (ICN): A STATE MODEL
What is the ICN?
A State Enterprise that receives no
appropriated funds except video subsidy and debt service.
Salaries etc. are raised by ICN -- there is
no funding from State for those overhead costs.
Type of Technology?
Star upon a Star Topology
SONET OC48 Backbone - Part 1
SONET OC12 Backbone - Part II
Asynchronous, 3 DS3 Platforms - Part III
39Mb Digital End to End - Full Motion Video
Added Value Limited Access Carrier Network
Who can use the ICN?
Educational Institutions
State Agencies
Libraries
Hospitals And Physicians Clinics
Federal Government
Post Office
City of Des Moines
Limited access service only i.e. not open to
general public
Video Capabilities and Features
680 Full Motion Video Classrooms.
Saturated access - no one is more than ten
miles from a Video Classroom anywhere in the State.
Network Provides Statewide Primary Rate
Interface (PRI) ISDN
MCU with 44 Ports.
Meshed Network - 4 Back to Back Codecs
BRIs At Selected Locations
Data Capabilities and Features
Statewide Frame Relay Network (56K,T1,&
DS3)
Statewide Internet Service Provider (3DS3's)
56K, T1, DS3 Internet Subscriptions
Voice Capabilities and Features
Full Service Bellcore Toll Carrier
Inter-Intra-800 Resporg-Meet Me
Bridge-Calling Cards
Statewide Line Side and Trunk Side Svcs
Enterprise Iowa Hub-IVR-Desk Top Faxing
What do ICN Services Cost?
Video - $5.50/6.50/10.50 per Hour
Telemedicine Not Subsidized - $45.00 per Hour
T1 Video PRI ISDN $164 per Month
Usage $.05 pcpm On Net
Usage $.25 pcpm Off Net
Frame Relay - 56K $115, T1 $364, DS3 $1400
Not Mileage Sensitive
Attached To USW Frame Relay Cloud
InterNet Subscriptions - 56K $225, T1 $575
DS3 $14,000, 10Mbs $30,000 per Month
Voice - Direct Connect - No Access Chg.
$.045 Interstate - $.05 Intrastate
800 Service $.085 per Minute
Switched Voice (PIC) $.10
Switched 800 $.105
IVR $50 Trunk Setup $38 per Trunk per Month.
Pass Through Scripting Costs
Iowa Hub $10 Setup $1.25 per Month
Advantages of the Network
Equitable Technology Deployment Statewide.
Gave Rural Iowa The Same Opportunities as
Metro Iowa.
Drove LEC Technology Deployment - The state
helped market opportunity by creating system.
Encouraged Public Private Partnerships.
Magnet for high-tech Federal Participation,
such as a recent $10 Million grant -- Feds are looking for user/applications that tie
applications to existing federal networks.
Lessons Learned
Bipartisan Support is required for success.
K-12 Opportunity Vs Higher Ed. Demand. The
lag time for utilization by K-12 schools was 5 years before the demand was there.
Technical Solutions Looking For Operational
Requirements -- The technology may exist but it requires necessary hardware to be in
place, such as desktop videos.
Dark Fiber is the Most Valuable Resource.
It is difficult to stay on the leading edge,
and difficult to raise prices.
Where do we go from here?
Asynchronous Transfer Mode (ATM) Deployment -
increase efficiency
MPEG2 Video.
Real Time Scheduling.
Statewide 10Mbs and 100 Mbs Data Networks.
Right of Way (ROW) is The Most Valuable
Asset.
ICN is facilitating City/State/School
District ROW Agreements and Planning Processes.
Create A Public Utility?
Add LECs To The List Of Authorized Users?
Outsource (not use state employees) for
network management?
Iowa is a unique state
Topology is consistent.
Population and government are equally
distributed.
It all started right here...
Kansas telecommunications proposal was
presented at a national telecommunications conference in 1980. It focused on using
interstate right of way for fiber optic networks. Iowa picked up the idea and applied it
there.
Session 5 - The
Y2K Session - Funding and the Future
Speaker: Kent Glasscock, Majority Leader, Kansas House of
Representatives
New Economy
Times of tremendous economic change
Blessed with outstanding prosperity over last
6 years.
Time to sow, not just reap.
Kansas economy is now driven by information,
science, math, tech, knowledge, and ideas. Therefore, we must recognize a need for
different governance than 10 years ago.
The current challenge is to shift the focus
away from job creation to widening the circle of prosperity.
The capacity to broaden technology access
requires bridging the digital divide between people, communities, states and the country.
Kansas is not well prepared for the new
economy, ranking in the lower half of states in terms of capability to take advantage.
It is a shared responsibility among public +
private => partners to ensure access for everyone.
Rural and urban must have equal chance and
opportunity to prosper in the new world economy.
Globalization is the current reality. It is
also true that the days are gone where you had to leave to get rich. If we have technology
with universal accessibility, citizens can prosper without migrating elsewhere.
Caution -- When the nation deregulated bus
services, we ended up with those who have bus service and those without. As we broaden
technology, we need to make sure that does not happen here.
Education
The basic skills of our young people are
critically important to technology and Kansas' future.
4th/5th grade
assessment > 50% do not measure up to basic requirements - the 3 Rs.
3rd to 4th grade makes
a transition from learning to read to reading to learn.
The challenge is to build in young people 4-9
basic skills to prosper in the new economy.
We need to create environment where the
teacher as important as anyone else in society -- if they fail, we fail.
KAN-ED proposal has many benefits, but it
will be difficult to fund it.
The issue of a technological backbone for
K-State is a difficult one.
The telephone, cable companies, and others
compete in the private sector for their economic future. We need to foster and build upon
it, yet also recognize a public component to it.
The state needs to help create a shared
vision through a process that brings the private and public sector players together and
recognizes the roles that each can play in creating the technology backbone.
Rural citizens need to speak clearly to
politicians that this issue is important and matters to your community and your children's
future.
Session 6 - Partnership
Models: Garden City Information Technology Cooperative; Pratt Telecommunity Center -
Pratt, KS
Speakers : Kent Sinclair, Garden City Information Technology Cooperative
(http://www.gcitc.org) and Greg Smith, Pratt Telecommunity Center, Pratt, KS.
Kent Sinclair - GCITC
Telecommunications, technology, health,
education and economic development are and will be, in the immediate future, intertwined
in rural southwest Kansas. Consequently, Garden City Information Technologies Cooperative,
Inc. (GCITC), a non-profit Kansas corporation, was formed to actively pursue the
deployment of telecommunications and technology in Garden City, Kansas (population 30,000)
and throughout southwest Kansas (population 140,000) to ensure the health, education and
economic future of our citizens.
The focus of the GCITC is threefold. First,
to create, deploy and collaborate with a wide range of service entities so that a high
bandwidth telecommunications network exists and is commonly available within Garden City
and southwest Kansas. Second, to invest and provide technologies that can be shared as a
result of telecommunications so that each user of a particular technology becomes more
effective through a greater technology orientation. Third, to maximize efforts and dollars
towards education, health and economic development issues that dictate the need for
technology and telecommunications.
The origin of GCITC is that Garden City
believed it did not have the telecommunications capacity it needed for the future. An
administrator at St. Catherine's Hospital plus community leaders such as the city manager,
county leader, community college president, school administrator, etc. agreed to work
together to relieve costs and burdens associated with telecommunications.
Examples
GIS project - GIS Coordinator
Geographic Information System is shared by
the city and county. Each member has access and it is shared with the community.
The goal is to reduce telecommunication costs
but also to provide better quality of life -- what does it bring to businesses and the
community?
A shift is occurring toward a knowledge-based
economy. Telecommunications capacity is needed to help compete locally (e.g. tumbleweed
sales over e-com network) and globally. High speed connections may not be available in the
near future, so GCITC is working towards cooperation to aggregate demand so as to attract
better service. This is a self-help measure on the part of the community.
GCITC is considering using a certification
program with Microsoft to train citizens at the community college.
Greg Smith -- Pratt Telecommunity Center
His perspective is not that of a policy
maker, but rather an entrepreneur.
"My intent is to offend you. I am tired
of the "rural whine." (The 'woe is me, I'm out here in a rural area and can't do
anything' attitude.) Don't feel sorry for us in Pratt. We are beginning to go into urban
environments and taking business from cities and doing it every day."
Pratt suffers from a problem of youth leaving
and never coming back.
The question is how to promote youth and
create an environment so they come back.
What is happening in the telecommunications
world is significant. There has been no change like this before and the rate of change is
incredible. Reactions coincide with this rapid change.
Youth Go Global is a Kansas initiative with
roots in Pratt, Kansas. The goals are:
Promote the youth
Cause change to occur
Pratt, as of two years ago, was a typical
rural community in terms of telecommunications. It had:
One Internet service provider (ISP),
66 people on the Internet,
A single choice in telecommunications
(Southwestern Bell),
One computer store and one that went out of
business,
One college with basic offerings except full
motion ITV, and
Zero schools with networks or Internet
access.
What was done about it?
The Pratt Telecommunity Center was formed.
The Center is a publicly accessible,
technology center that provides access to
advanced technologies and telecommunications. It is housed in a downtown building that has
been remodeled. The local economic development corporation invested $8,000 in the project,
most of which went for repair of an elevator.
The center uses the technology that youth
understand -- The Internet.
The center builds web pages but is using that
technology interactively like never before. For example: The center now does live
highlights of baseball and football games over the Internet.
The youth are doing this and are now going
statewide, such as Internet coverage of the state wrestling championship.
The center will do whatever it takes to
produce an event, even those with no connection to Pratt. For example, the center is doing
events in Manhattan and Topeka.
The goal is to promote use and create change.
For example:
The center is providing broadband choices in
telecommunications.
The youth are producing radio feeds of sports
broadcasts that are similar to those of ESPN.
Retailers now can sell on-line. For example,
a bookstore in Dodge City has joined Pratt's Chamber of Commerce so that they can sell
their books on-line.
The center was the first and only place to
sell online in Kansas.
The potential is great.
This project could make Pratt, Kansas the
media capital of the state. The center could produce any event which they chose.
The project created so much telephonic demand
created that it disabled the 911 service. Southwestern Bell had to come in and upgrade
capacity as a result.
As a result, Pratt currently has:
Four Internet service providers (ISPs),
60% of households on the Internet,
2000 paying customers,
Three choices in telecommunications (SW Bell,
S. Central Telecommunications and Multimedia),
Three computer stores, which have done more
than $1 Million in sales during the first 12 months,
One college with basic offerings except full
motion ITV, that is "finally joining the effort,"
Two schools with networks and Internet
access,
Six technology businesses on Main Street,
A call center,
The most accessed web sites in Kansas (http://www.futurekansas.com)
A virtual on-line mall,
Two Web hosting services, and
A high level of expertise now living in the
community.
Why the emphasis on strategic planning?
Comprehensive planning, like what is being discussed, means thrashing things around --
i.e., standing still. If the government is doing this, it simply means to the entrepreneur
that the government is easier to compete against.
Broad-band technology access is already
available, but communities must be prepared for them to use this potential.
Issues facing individual citizens include:
Why is my city/town/community not on the
Internet?
Why is there no public access to records
on-line?
"We should talk less about new
infrastructure and more how we can utilize what we have."
Communities should identify those who have
created positive change and then follow or leapfrog the leaders.
The priority of the Pratt community was based
on drawing young people back to the community.
In terms of use of the Internet for 'Main
Street,' there are challenges. For example:
There are 70 to 80 businesses that have web
sites, but these are being used primarily as brochures. They are not used for active
selling.
It is important to have technological
expertise available.
E-commerce is available in Pratt through the
telecommunity center, but adoption has been slow. Local businesses are still not into
promoting on-line shopping. These businesses are missing a major opportunity. They could
be using electronic commerce to sell their products world-wide. After all, the world is a
big place, with an estimated 8 billion URLs.
In Pratt, promoting fun events over the
Internet led to increased traffic, which led to creation of an a-mall. An estimated 70,000
people watched the state wrestling tournament being covered over the Internet by Pratt
youth, and this was used to promote Pratt businesses.
There has been local opposition to such rapid
change from some community leaders. "But, we need a wake-up call. If we don't take
advantage of these opportunities now, they will be stolen away."
Why is there resistance to change?
Some desire the 'golden years' of the past.
Some people are uncomfortable with change,
and feel threatened.
"It is not the young nor the old, it is
the middle-aged group. These people have not experienced change like the young and the old
are now."
Some businesses may perceive they are in
jeopardy because competitors can come in via the Internet and take them. It is a case of
"eat or be eaten."
The decisions will be made about who will be
"eaten" by the time State gets around to finishing its strategic plan, i.e. it
will be too late.
Session 7 - Why Is
Telecommunications Technology Crucial to Me? Who Should Pay? Who Should Take the Risk?
Moderator: Ron Wilson, Director, Huck Boyd National Institute for Rural
Development
Panelists:
Neb Webb, Community Development, Kansas Department of Commerce and Housing, Topeka
Charles Ranson, president of Kansas Inc., Topeka
Don Moler, League of Kansas Municipalities, Topeka
Mark Bannister, Fort Hays State University, Hays
Ron Marnell, Multimedia Cablevision (now Cox Communications), Wichita
Rich Porter, Rancher, Reading
Roger VonFeldt, Rural Telephone Company, Lenora
Question: Why is telecommunications important
to you?
Neb Webb
The role of the community development
division of the Kansas Department of Commerce and Housing is to build capacity in
communities in rural Kansas. What we are talking about here is capacity, in a new,
electronic sense.
We need to develop capacity in this area
and also recognize if there are 'winners and losers' in the process.
We need to identify leaders in this field,
and then build on their work or leapfrog it.
The Internet has amazing capacity, but the
important thing is to doing something with it that is meaningful to Kansas communities and
Kansas businesses.
According to experts, it is e-business
(electronic transactions between companies) not e-commerce that will drive the market.
There is a risk that if we cannot offer
companies broad-band access, they may choose to leave the State.
Charles Ranson
The mission of Kansas Inc. is long
range analysis and development of economic development strategies.
Information technology is the future.
Telecommunications capacity is "essential, but not sufficient" for future
success.
Regardless of size, if a community does not
have it, its future is limited.
This is a fundamental, not a cyclical,
change -- things will never the same.
Just as the highway system was essential
for rural Kansas to grow, the technology highway is the equivalent. High speed access will
be important.
The real question is, what do we do with
it? Creative leadership is in place in many communities, such as Pratt. But rather than
trying to duplicate the model in Pratt, each community should adapt its own
telecommunications initiatives to maximize their own strengths.
Don Moler
There are 638 cities in Kansas. Some
believe that any city, business or service without Internet use will not exist in 5-10
years.
Business is moving away from main street
toward the electronic highway.
For example, in Lindsborg, three businesses
sell more products on-line than off.
In Topeka, Don wanted to buy a digital
camera. He priced it on-line and then went to purchase it from a local business in Topeka.
The business would not meet the on-line price so it lost a customer-- and he bought it
$100 cheaper from New York.
The mindset has been that Internet
technology is a fad that is going away, but that is not the case. Any commodity that can
be described with a picture can be sold over the Internet -- it is not going away
The issue is one of attitude. We need to
educate, to change, and be on the first wave hitting the shore.
Mark Bannister
Computers today are integrated into
everyday life, they are not just a machine that sits on some desks. Before long, computer
chips will be imbedded in every device in every room.
Access to high quality telecommunications
capacity is a crucial issue for business. Rural communities need such access to compete or
they will be run over.
As the joke goes, why does a dog like the
Internet? Because when you're on the Internet, no one knows you are a dog.
The key is access. Information needs to be
available to citizens from governments electronically, such as legislative minutes or
other offerings from the Information Network of Kansas (INK).
Health care is seeing remarkable changes
due to information technology. It can bolster services and increase choices for
physicians.
Ron Marnell
The cable television industry has
changed. Not everything was developed in the city first. Cable TV went from rural areas to
the city.
The technology is already available to get
the job done, in terms of the delivery of Internet, entertainment, and rural business
services.
Communities such as Tyro, Yates, Pratt ,
and Wichita are all served by Multimedia and all will have high speed, broadband service.
The best strategy for the state is not to
subsidize individual companies, but rather the USERS and CONSUMERS of the product. By
subsidizing the companies, the state picks the losers and winners.
Rich Porter
Rich lives by Reading, Kansas, a town
of about 250 people. He participated in the K-State Masters of Agribusiness program via
distance learning.
Most technology conferences talk about
supply -- the type of technology that is available. The real issue is the demand by
prospective users. There is a need to strengthen the demand. Examples of use of such
technology include distance education, communication, and delivery of extension services.
The real limitation is not infrastructure
but INFORMATION TECHNOLOGY.
There is a need to make such technology
easier to use. For example, it would be useful to provide e-mail notification when
extension reports are issued.
Roger VonFeldt
Rural Telephone Company of Lenora,
Kansas, is a cooperative.
No one wanted to come out and provide
service in their area of northwest Kansas -- they were the first ones to do so.
Now, the cooperative provides services to
1700 customers in 95 exchanges, at comparable rates between rural and urban areas. One of
its goals is to create jobs in rural areas to retain population. The company has
diversified and expanded with time.
"Cooperatives focus on customers and
communities, large telecommunications businesses focus on shareholders."
Suggested strategies for the future:
Expand and support such rural co-ops.
Utilize voice, video, and data transmission
for information, entertainment, and communication.
Work with the Education community.
Schools are interested in tools but meet
roadblocks.
There is a need to increase the level of
education and develop people who utilize technology.
Build jobs, maintain technology, work with
business and customers.
Question: What is the difference between
E-business and E-commerce?
Ned Webb
E-commerce is the traditional retail
business definition -- buying something over the web.
The many business processes which make it
possible for that transaction to occur might be termed e-business. For example, e-business
would be the many steps which follow after an order is placed, or the steps which make it
possible to offer a product, such as requisite hard drive, parts, software, and
just-in-time inventory to make sure the product can be delivered in two days. All of that
is e-business.
It is estimated that the Christmas season
of 1999 will incur $9 Billion in e-commerce. In 1998, e-business was estimated at $143
billion. For 2003, it is estimated at $1.3 trillion and could be higher.
Question: What should the State of Kansas do?
Charles Ranson
The first step is to pass the KAN-ED
legislation. It is a well thought out proposal and is a step in the direction of linking
up schools and libraries. Perhaps its aims are too low, but it is a beginning.
It is best to subsidize technology USERS
rather than companies. This is analagous to college education and the GI Bill. After World
War II, the U.S. supported soldiers by giving them funds to go to college. Schools
competed for those students, and the result is the best university system in the world.
If the subsidy is given only to companies,
there are no incentives to make investments in new technology or take risks to leapfrog
ahead.
Salina is an example of a community which
has created an environment of active competition to meet demand.
Don Moler
The train is leaving the station and
the state needs to get on.
The state does have a bright and well
educated populace and should find opportunities for them through technology.
"For the first time in history, the
ability to latch onto business is not dependent on where you live, that is, it is not
dependent on population density."
The most important step is simply to act.
Opportunities for the greatest success in e-commerce will not exist forever.
The Information Age has reached the open
society. Citizens are plugged in and want to get information out, and governments need to
do so. The technology exists to get information out instantly on any event. Government can
become irrelevant if it is unwilling to change.
Mark Bannister
Government can be an agent of change.
For example, public project bids could be put on the web and businesses could come on-line
to bid.
The fundamental need is to develop demand.
The state should encourage broad-band
infrastructure. A 28.8 modem is now considered slow. Greater band-width is needed.
Ron Marnell
Reselling telephone service is not a
solution, for this discourages investment. A key question at the federal level is how
bandwidth is allocated for wireless use? There is need to regulate the way the resource is
allocated, in a way other an density of population.
Education is needed for the new technology.
Textbooks are out of date in schools. Technology is the new world map.
Rich Porter
Technology is changing at a rapid rate,
but it needs to be made more user friendly. Additional college courses should be offered
over the Internet besides degree programs.
Conference calls could be used to build
more linkages.
Mentor support is important, so that an
individual has someone to ask.
Roger VanFeldt
The 1996 Telecommunications Act
required modem capabilities of 28.8. As technology has increased, so did the size of data.
The act was later amended to lower the
capability to 19.2 bandwidth. Given the needs, shouldn't it have been increased?
Rural Telephone Company's Internet service
serves 55 communities with 56 K modem capabilities. With DSL, it can move up to 128 K and
to 786K.
Mark Bannister
When discussion turns to the
intricacies and complexities of telecommunications regulation, the eyes of citizens begin
to glaze over.
Infrastructure is available now. What is
needed is to disseminate knowledge. Business schools and colleges should train students
but also the current generation of people in the field.
The state should launch an initiative to
help the press educate small business of the opportunities and how to take advantage of
information technology. Extension can use this technology also.
Charles Ranson
Whether or not the technical infrastructure
insufficient, the great need is for leadership in communities on how to use the
technology, survive and innovate. The state should enable leaders and communities to
survive and flourish.
Session 8 - Policy
Recommendations -- Wrapup and Adjourn
Speaker: Carol Peak, Kansas Center for Rural Initiatives
This year, for the first time, the symposium
planners intend to produce a white paper which records the major comments of the speakers.
Policy recommendations will be drawn from the symposium and included in the report.
John Allard -- Here is
an example of one specific new opportunity for Kansas communities to use
telecommunications technology for distance education. The Kansas Regents Network, known as
TELENET 2, has received a $350,000 grant from the U.S. Department of Agriculture's Rural
Utilities Service to expand the network. It will be expanded up to 80 additional
communities.
The new project is called T-RAK --
Telenet-Reach Across Kansas. The grant provides partial funding for communities to
purchase desktop videoconferencing equipment which will be used for 30 to 50 hours per
month of T-RAK programming on various topics important to communities. For more
information, contact the Kansas Regents Network at 141 Bob Dole Hall, KSU, Manhattan, KS
66506, phone 785-532-5995, or e-mail at t2net@ksu.edu.
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