8 minute read
Accelerate the transition to a clever countryside
A central theme for economic development at the beginning of the 20th century was the creation of farm roads, connecting rural farms with urban markets. Today, we face a similar challenge, where smart cities need to interface with digital rural communities, for all of America to prosper.
Smart cities cannot carry the economic growth burden alone, and many businesses belong in the countryside. The creation of a clever countryside, connected to smart cities, is a survival question for rural communities.
The U.S. has 1,976 counties classified as micropolitan or rural, with the population growing faster than the national average in 133 counties, 1 and growing, but at a slower rate, in 477 counties. 76% of citizens in rural areas use broadband daily, but only 63% have access to fixed broadband, and 71% have a smartphone. 24% of rural consumers see broadband as a concern. 2 These statistics give us a reason to focus on underserved, rather than just unserved markets. Four areas stand out as lowhanging fruit for the next three years: • Rural communities with a growing population/economy • Underserved rural broadband consumers who want a better broadband service • Rural communities that rely on businesses that fit well in rural areas, both short and long term • All households that are above the poverty line in rural areas
Momentum for the clever countryside is growing. Broadband in rural communities is a central theme for the 2020 elections. The FCC has suggested a $20.4 billion “rural digital opportunity fund” to increase broadband penetration in rural areas. 3 A 5G-based rural broadband buildout is a condition for the merger between Sprint and T-Mobile. A dedicated $1 billion fund is in the works for modernizing rural mobile infrastructure. 4
1 “Rural Economy.” USDA ERS - Rural Economy, www.ers.usda.gov/data-products/ag-and-food-statistics-chartingthe-essentials/rural-economy/.
2 Perrin, Andrew. “Digital Gap between Rural and Nonrural America Persists.” Pew Research Center, 31 May 2019, www.pewresearch.org/fact-tank/2019/05/31/digital-gap-between-rural-and-nonrural-america-persists/.
3 “FCC Proposes $20.4 Billion Rural Digital Opportunity Fund.” Federal Communications Commission, 2 Aug. 2019, www.fcc.gov/document/fcc-proposes-204-billion-rural-digital-opportunity-fund.
Where a clever countryside can make a difference
A clever countryside relies on the potential of network digitalization, in the same ways a smart city does. The most significant difference is in the challenges to address –the specific needs of micropolitan and rural businesses as well as local and state government functions.
Primary and college education
Access to broadband is a prerequisite for primary education. In some school districts, digital education assets have replaced books for teachers and students. Even if schools are connected, broadband is needed at home for preparation and homework. The most extreme form of digital divide is between students who can and cannot do their homework at home. 15% of American households with schoolaged children do not have high-speed access at home. This figure grows to 35% for families with a yearly income below $30,000. 5 In a clever countryside, all teachers can prepare for their classes, and all K-12 students can study in school and at home.
Access to a college education defines life choices by young citizens in their late teens. For previous generations, a college education meant a move to a town or city with a college. But in a digital world, anyone can access college education remotely, as long as they have broadband access. For example, study-motivated citizens can continue to live in the rural community where they grew up while pursuing a higher education. In a clever countryside, you develop the local talent before you lose it to a bigger town or a city.
Remote access to specialist healthcare
Access to healthcare is a crucial decision criterion for where live. The urbanization trend caused the older generation to stay in rural areas and the younger generations to move to more urban areas. Fast forward a decade or two, and this has created a growing healthcare burden carried by a shrinking population.
A clever countryside secures primary healthcare locally – with remote access to specialist care. Broadband-connected patients and doctors create a new landscape for how to provide preventive and emergency care.
Connected green energy grids
Green energy production from wind turbines and solar panels thrives in rural communities where wind is in steady supply and the sun frequently shines. These energy forces are attractive. But with a weather-dependent supply-side and a demand-side that is becoming more complex, energy provisioning is becoming more sophisticated.
Today, 6.5% of U.S. electricity comes from wind turbines and 1.5% from solar panels, with growth projected over the next decade. 6 A clever countryside has all green energy sources integrated into a smart-grid structure.
Precision agriculture
Existing agriculture land is projected to feed a growing global population. To maximize productivity, precision agriculture is replacing traditional agriculture methods, with data-driven approaches and remotely operated machinery. Still, 25% of U.S. farms lack any form of internet access – not just broadband access. 7 The FCC has recently suggested an initiative to cover 95% of U.S. farmland with broadband by 2025. 8
A clever countryside embraces the precision agriculture movement and leverages mobile broadband for farms and farmland.
Manufacturing and logistics
Small and medium manufacturing plants thrive in rural communities, where production previously offshored to low-cost countries is returning. U.S. manufacturing provided 12.85 million jobs in 2018, representing 8.5% of the workforce. 9 Manufacturing is an essential part of the
5 Anderson, Monica, and Andrew Perrin. “Nearly One-in-Five Teens Can’t Always Finish Their Homework Because of the Digital Divide.” Pew Research Center, 26 Oct. 2018, www.pewresearch.org/fact-tank/2018/10/26/nearly-one-in-five-teens-cant-always-finish-their-homework-because-of-the-digital-divide/.
6 U.S. Energy Information Administration - EIA - Independent Statistics and Analysis. ”What Is U.S. Electricity Generation by Energy Source? - FAQ - U.S. Energy Information Administration (EIA),” www.eia.gov/tools/faqs/faq.php?id=427&t=3.
7 “Farm Computer Usage and Ownership” United States Department of Agriculture, 19 August 2019, https://downloads.usda.library.cornell.edu/usda-esmis/files/ h128nd689/8910k592p/qz20t442b/fmpc0819.pdf
local economy in 348 micropolitan and rural counties. 10
A clever countryside supports the manufacturing sector with a high degree of automation in factories and fully connected logistics routes.
Outdoor recreation
Outdoor recreation is a growing sector of the rural economy. The high quality of life makes local citizens stay and draws people from urban areas. 224 rural and 85 micropolitan counties in the U.S. are considered recreation counties. The population growth in these counties was 0.1% the past decade (2010-2019), while non-recreation counties fell 2%. 11
A clever countryside offers tourists and visitors access to broadband as if they were at home, so they can share and promote their experiences and stay connected.
Digital jobs and businesses
Digital firms and employment represent a category of jobs that can grow in rural and micropolitan counties. When compared to a metropolitan area, work commutes get shorter, access to outdoor recreation is around the corner and the cost of living is lower. These benefits are attractive for a portion of the workforce at various stages of their lives.
A clever countryside unlocks the potential for digital jobs, businesses and sales channels, with a focus on one-person companies and small businesses. This sector is easy to develop, once the necessary mobile broadband infrastructure exists.
Network infrastructure priorities
The future network infrastructure in rural and micropolitan communities leverages the same technologies developed for metropolitan areas. Investments are focused on fiber- and radio-based broadband networks to consumers, businesses and local government functions.
Multiple providers are candidates to supply these networks: • Large national communication services providers with rural agenda • Regional and local communication services providers with micropolitan and rural markets as the only markets they serve • Wireless internet service providers, established with fixed wireless networks in unlicensed spectrum, now migrating their networks to LTE and 5G network technologies using
EBS and CBRS spectrum • New entrants leveraging licensed or unlicensed CBRS spectrum for service delivery
Providers have four main primary broadband opportunities in rural and micropolitan communities.
First, fiber already connects the central parts of larger towns, and fiber is widely available along primary highways. Cellular network infrastructure complements fiber access for mobile services, and fixed wireless access offers a last-mile alternative to connect homes and businesses using high-gain customerpremises equipment (CPE).
Second, the fiber along primary highways serves as backhaul for mobile and fixed wireless services in villages and towns along the highways. In some cases, fiber as backhaul is extended via point-to-point microwave links. There is an opportunity to create synergies with one infrastructure for both mobile and fixed wireless services.
Third, for the portion of towns not yet covered by fiber access, fixed wireless access is a new tool in the toolbox. It offers similar advantages in the outskirts of towns as in villages along highways. The challenge is to define how far to take fiber access, and which portion to serve with fixed wireless access.
Fourth, wireless with cellular or satellite solutions is the only option for tiny villages or remote households. The most difficult and most costly houses to reach are addressed as the last priority once the previous three opportunities are penetrated.
Cities adopt smart city initiatives to stay relevant. Rural communities face a choice of an increasing digital divide or an accelerated agenda to become a clever countryside. The latter being a prerequisite for rural communities to stay connected and relevant in the digital age. As we’ve proven, there are a number of areas where regional communication service providers can focus initial efforts – and help create prosperity in the communities they serve.
Peter Linder,
Head of 5G Marketing, Ericsson North America
