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Feasibility Study and Report from Montana State University

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Feasibility Study and Report from Montana State University PO Box 201800 1515 East 6th Avenue Helena, MT 59620 (406) 444-3115 Today, access to the Internet and a basic level of digital literacy are essential for education, employment, communication and partaking in everyday family and civic life. Printed tax forms are being replaced with web-based systems; written job applications are being replaced with online applications; mailed birthday cards are being replaced with smart phone applications and posts to Facebook. While print materials such as book and magazines will always be resources for life-long learning, entertainment, and formal research, digital content is becoming a primary source for many Montanans. As the public wants and needs exponentially greater access to online resources, and as the demand for more robust infrastructure to meet content needs at libraries grows, the State Library will continue to provide leadership and support to help Montana stay ahead of the curve. When Montana State Library applied for a federal Broadband Technologies Opportunities Program (BTOP) grant funded by the American Reinvestment and Recovery Act (ARRA) in 2010, we recognized the significant shift happening in the way Montanans were accessing information and the growing pains experienced by libraries and their communities across the state. Through this grant, libraries have received new computers, software, ADA-compliant furniture, network equipment, staff training and upgraded broadband connections. As we approach the conclusion of this program, the State Library is exploring ways to help local libraries not only sustain these efforts, but to meet future demands as digital content evolves. To that end, the Montana State Library solicited the following Montana State Library feasibility study and report from Montana State University. Mission This report provides an academic perspective on the economics of public Internet access at libraries, as well as The Montana State Library is opportunities to re-organize existing resources and potential formation of regional or statewide consortia. It also offers committed to strengthen libraries suggestions on the role the State Library could assume to assist and information services for all libraries. The study is one of many resources the State Library Montanans through leadership, will use in future dialogues with library directors, local advocacy, and service. governments, and state leadership to determine how we may better meet our communities’ information technology needs with limited financial resources. As you read through this valuable resource, consider how the suggestions within it would impact your community. What would your advice be to your public library? What role could the State Library play in its partnership with public libraries to ensure that Montanans have access to timely, quality information that will help them better achieve their life goals? Jennie Stapp State Librarian Understanding Cost-Effective Strategies for Increasing Technology & Internet Access in Montana Public Libraries AREPORT TO THE MONTANA STATE LIBRARY About the authors Dr. Gregory Gilpin and Dr. Anton Bekkerman are assistant professors in the Department of Agricultural Economics and Economics at Montana State University – Bozeman. Their research has included work on the economics of public libraries, cost-effective strategies in education, the effect of minimum dropout age laws on crime in school, and agricultural market and price analysis. Gregory Gilpin Anton Bekkerman 303 Linfield Hall 205 Linfield Hall Montana State University Montana State University P.O. Box 172920 P.O. Box 172920 Bozeman, MT 59717-2920 Bozeman, MT 59717-2920 P: 406-994-5628 P: 406-994-3032 F: 406-994-4838 F: 406-994-4838 E: [email protected]: [email protected] ii iii Report Contents List of Tables ................................................ vi List of Figures ............................................... vii Executive Summary ............................................ 1 1 Existing Statewide Strategies ..................................... 11 1.1 Maine School and Library Network ............................... 11 1.2 Ohio Public Library Information Network............................ 14 1.3 West Virginia Statewide Library Network ............................ 17 1.4 California Peninsula Libraries Automated Network....................... 19 1.5 Massachusetts Minuteman Library Network........................... 21 1.6 Wisconsin BadgerNet....................................... 24 2 Technology Services Standards .................................... 27 2.1 Lessons from Existing Strategies................................. 27 2.2 Recommendations from Other Institutions............................ 29 2.3 Edge Benchmarks......................................... 29 3 Summary of Telecommunication Service Providers ......................... 37 3.1 Aggregate Statistics........................................ 37 3.2 Available Telcos in Library Service Areas............................ 38 4 FCC Rulings .............................................. 41 4.1 Universal Service Program for Schools and Libraries (E-rate).................. 41 4.2 National Broadband Plan..................................... 42 4.3 Broadband Data Improvement Act................................ 42 4.4 USDA Rural Development.................................... 44 4.5 Connect America Fund...................................... 45 4.6 Net Neutrality........................................... 46 4.7 Office of Native Affairs and Policy................................ 47 5 Internet Access Costs ......................................... 52 5.1 Hardware Costs.......................................... 52 5.2 Software Costs .......................................... 56 5.3 Technology Support Personnel Costs............................... 56 5.4 Internet Access Costs....................................... 58 6 Funding Opportunities ........................................ 60 6.1 Internet Access Funding Opportunities.............................. 60 6.2 Nontraditional Opportunities................................... 64 7 Cost-Effective Strategies to Increase Accessibility ......................... 74 7.1 Centralized Information and Service Resources ......................... 75 7.2 E-rate Consortium......................................... 80 7.3 Regional IT Service Structure .................................. 86 iv 7.4 Fully Centralized Network.................................... 90 Referenced Materials ........................................... 98 Appendix I: List of Available Telcos by Library System ........................ 102 Appendix II: Directory of Telecommunication Service Providers in Montana ............ 132 Appendix III: Foundations Providing Financial Support to Montana Organizations ........ 142 Appendix IV: Proposed Library IT Districts .............................. 163 Appendix V: Proposed Library IT Districts In Initial Centralized Network ............. 169 Appendix VI: Library Urbanicity Categories .............................. 171 v List of Tables 1 OPLIN FY 2011 Balance Sheet.................................. 16 2 Monthly Circuit Use Costs by Speed............................... 21 3 State Library of Kansas Internet Connectivity Matrix...................... 28 4 Summary of Benchmark Indicators from Existing Strategies and Public Library Survey Data . 31 5 Summary of Missouri State Government Hardware Procurement Strategies .......... 32 6 Summary of University of Florida Hardware Procurement Strategies.............. 33 7 Summary of Virginia Commonwealth University Hardware Standards............. 33 8 Summary of Edge Initiative Benchmarks and Assessment Indicators.............. 34 9 Summary Statistics Describing the Supply of Telecommunication Service Providers . 38 10 State Broadband Initiative Grant Awardees in Montana..................... 43 11 Summary of FCC Rulings Pertinent to Montana Libraries.................... 49 12 Number of Computers and Computers Requiring Replacement in Montana Libraries . 53 13 MSL BTOP Hardware Purchase Specifications ......................... 54 14 Summary of WSCA/NASPO Premium Savings Packages.................... 55 15 Software Use and Costs in Montana Public Libraries ...................... 57 16 Annual Software Costs in Montana Library Systems....................... 57 17 Percentage of Montana Library Systems with Technology Support Personnel Costs . 59 18 Annual Broadband Internet Access Costs per Mbps for Montana Public Libraries . 59 19 Savings Associated with the E-rate Program for Montana Public Libraries........... 61 20 Equipment Purchased for Montana Public Libraries Using BTOP Grant Funding . 63 21 Summary of Internet Access Funding Opportunities....................... 65 22 Grant Funding Originating from Montana-based Foundations.................. 71 23 Summary of Nontraditional Funding Opportunities ....................... 72 24 Hardware and Software Costs for Standardized Equipment in Montana............. 78 25 Montana Public Library Directors’ Reactions to Hardware and Software Standardization . 80 26 E-rate Participation and Discount Rates in Montana Libraries.................. 81 27 Example of Allocation of E-rate Discounts in a Consortium................... 82 28 Montana E-rate Consortium Proposed Budgets ......................... 85 29 Montana IT Personnel Consolidation Budget........................... 89 30 Montana Pilot Centralized Network Internet Access Budget for 28 Libraries.......... 93 31 Montana Pilot Centralized Network IT
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