Infrastructure, Applications & Awareness

As Canadians bridge the gap between the traditional industrial economy and the expanding information economy, few would dispute the increasing importance of establishing universal broadband access in Canada. Broadband is a disruptive technology that is changing the way services can be delivered in rural areas: telemedicine, distance education, and government-online applications have the potential to stem out-migration, reduce costs, and improve access to services for rural Canadians.

Universality advocates face two major barriers. First, broadband access requires expensive equipment and infrastructure that is unavailable in many rural areas. Second, population distribution in Canada roughly follows Paretoâ€™s Principle â€“20% of our people live in 80% of the landmass. Market forces in urban areas have created an environment where telecommunications companies can earn a reasonable rate of return on technology investments, but population densities in rural Canada make it difficult to develop a sustainable business case.

To overcome these obstacles, many rural and remote communities are working together under the banner of a regional community champion who aggregates demand, facilitates partnerships and coordinates development projects. These advocacy groups are often called community based networks (CBNs), and their definition has evolved significantly since they emerged en masse in the late nineties. Where they once focused on the development â€“and sometimes, ownershipâ€“ of infrastructure and network services, many are finding that the traditional â€œbuild it and they will comeâ€ paradigm has not met initial community development expectations.

An infrastructure-focus ignores the implications of Mooreâ€™s technology adoption curve, which illustrates how quickly and to what extent new technologies are adopted. To increase penetration rates for a relatively new technology like broadband, CBNs need to educate the target market, provide compelling reasons for them to subscribe, and reassure them that the technology is reliable. In other words, good marketing and communications programs are critical.

The challenge that CBNs face is further complicated by digital divide issues in rural Canada. Demographic segments with lower income and education levels (which are more likely to be represented in rural areas) have lower technology adoption rates. In addition, less exposure to technology is a consequence of reduced access in rural areas lowers demand, which in turn makes it difficult to sustain a business model even if capital investments are subsidized. According to a 2004 report by Pew/Internet, rural internet penetration consistently lags 10 points behind the national average. The implication is that in rural, low-density areas, itâ€™s essential for CBNs to


MacIntyre headframe stands on the edge of Timmins.

help build a solid subscriber base, so that once infrastructure is in place, market forces can sustain it.

NEOnet is a CBN that represents 60 communities in an area of 200,000 km2, with a population density averaging one person/km2. In 1999, NEOnet's Board decided to base its mandate on the three ICT pillars : infrastructure, applications and awareness.They also chose the Lotz community development organization model, which includes positions for a visionary/strategic planner, a project manager, a marketer and an administrator. These two decisions have addressed many of the digital divide problems typically encountered in remote areas. For example, when NEOnet began its $9M cellular coverage project, staff first developed a comprehensive Cellular Strategy. The plan called for developing community partnerships, and incorporated infrastructure project management, marketing programs on cellphone benefits, and business-oriented workshops on wireless applications. â€œAdoption rates rise when we help stakeholders learn how to use the technology, and why they should use it, says Christy Marinig, NEOnet's Chairperson. "That makes a much more sustainable business case."
Is NEOnet's integrated model successful? Consider this selection of achievements since 1999:

Although it owns no infrastructure, NEOnet initiatives have resulted in more than $80M of public and private sector ICT investment

NEOnet projects have created more than 20 jobs in the regional technology sector
It partnered on the development of a world-class regional teleradiology network that reduced waiting and diagnosis times, supports specialist retention, and generates interest from around the world
NEOnet and its community partners won an international award for "Most Innovative GIS Day" event in 2001. The event attracted over 1000 high school students to a Technology Career fair, and catalyzed a growing interest in GIS applications among municipalities and businesses
NEOnet was a successful BRAND applicant. By the end of 2005, 41 of its 60 communities, or 68%, will be served. That's well above the national average of 28%.
The high-speed penetration rate among internet users (where available in the region) is 65%, the same as the national average.

We evaluated several different technology development models when we founded NEOnet, says Marinig. It was pretty clear that all three pillars: infrastructure, applications and awareness had to be part of an integrated strategy if we wanted true community capacity building. And its working out even better than we had anticipated.

Given the complexity of the ICT sector, and the unique challenges associated with disseminating technology in rural areas, NEOnet's model is a sensible choice for community based networks

Maggie Matear
NEOnet Director of Operations

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