Case Study: Rural Broadband
GOAL:
The south-central tier of Virginia, known locally as “Southside,” is a region whose history centered on agriculture – primarily tobacco growing, textile manufacturing, and furniture-making. With the decline of these industries, regional leaders came to understand that access to high speed broadband infrastructure was a pre-requisite for many hightech, high-growth 21st century companies.
CHALLENGE:
The challenge the region faced was the lack of market incentive for commercial broadband providers to install fiber in the region, since few existing businesses needed high-speed broadband capability. Information technology experts at Virginia Tech suggested that the region deploy open access dark fiber, using funds from the tobacco
settlement. With dark fiber in place they argued, the region would be much more attractive to high-tech businesses who could then “light” the fiber they needed. Unfortunately, the mainstream telecommunication providers were uncomfortable with this dark fiber business model, claiming that they needed to install and own the fiber themselves in order to guarantee signal fidelity.
OUTCOMES AND IMPACTS:
Now 150 miles in scope, the renamed “nDanville: network is a key tool for attracting businesses to the area. “There are numerous reasons why investing in broadband is so important to the City of Danville. By implementing a strong network for technology and communications, we create opportunities and possibilities in Danville that before simply did not exist…The results of this broadband investment are considerable. It allows us to create local markets for new services and a more competitive marketplace in which businesses can thrive and create jobs. It also attracts private investment in our community from providers of telecom services that wish to serve residents and businesses.”
Perhaps of even greater note is the fiber broadband buildout throughout the southern tier of Virginia, based on the eDan model. This buildout has been led by Mid-Atlantic Broadband Communities Cooperative (MBC), which now boasts 1900 miles of open-access fiber in Southern Virginia. “The broadband capacity MBC has brought to Southern Virginia has attracted numerous companies to the region and has helped to bring more than 1,100 jobs and $2.1 billion of private sector investment to the region. Most notably, MBC was a critical component in securing the Microsoft data center project for Southern Virginia, which has already announced more than $1.7 billion in private sector investment and 222 high-paying jobs.”
By 2007 45 faculty members, graduate students, and engineers were employed at the IALR. Presently, IALR applied research efforts have established Danville as a leader in the fast-growing hemp industry, hosting an annual Industrial Hemp Summit attended by hundreds from across the globe, as well as providing important testing and research services. The IALR continues to leverage its strengths in biotechnology to assist numerous facets of
the agricultural industry. A high speed tire testing facility continues to draw industrial partners associated with the racing industry to Danville and an advanced manufacturing center at the IALR has been established to support industry in integrating and optimizing new capabilities.
Commercialization and entrepreneurship programs continue to produce returns. Business growth has extended beyond the original IALR 90,000 square foot building to encompass four additional buildings, the colocation of businesses to adjacent properties in the Danville CyberPark, and the redevelopment of Danville’s historic tobacco warehouse district.