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Preliminary Feasibility Study World-Class Communications in Westminster: Preliminary Feasibility Study Prepared for the City of Westminster, Maryland May 2013 World-Class Communications Infrastructure in Westminster May 2013 Page i Table of Contents 1. Executive Summary ....................................................................................................................................... 1 1.1 Project Background and Goals .......................................................................................................... 1 1.2 The Current State of Broadband Competition in Westminster .......................................... 2 1.3 Fiber Promises Benefits for Westminster Residents, Businesses, Schools, and Healthcare ............................................................................................................................................................... 6 1.3.1 Business Use: Large and Small ................................................................................................. 6 1.3.2 Residential Use: Carroll Lutheran Village ........................................................................... 7 1.3.3 Healthcare ......................................................................................................................................... 7 1.3.4 Education .......................................................................................................................................... 8 1.4 Responses to the City’s Request for Information Present Valuable Data ...................... 9 1.5 Recommendation: The City Should Move Forward with FTTP Pilot Projects ............. 9 2. An Increasing Focus on Fiber Optics in America: Where We Are Now and Potential Future Directions ................................................................................................................................................... 11 3. Why Fiber Matters in Westminster ...................................................................................................... 20 3.1 Fiber Is The Platform of Our Economy and Our Broadband Future ............................. 20 3.2 The Economic Development Impact of High-Capacity Broadband Is Growing ........ 24 3.2.1 Kansas City .................................................................................................................................... 26 3.2.2 Chattanooga .................................................................................................................................. 27 3.2.3 Data from Asia and Europe Demonstrate Strong Correlation Between Ultra- Fast Broadband and Economic Development ................................................................................. 28 3.3 High Capacity Over Fiber Is Crucial for Community Anchor Institutions Such as Westminster’s Health Care Facilities ....................................................................................................... 31 3.3.1 The Current State of Telemedicine ..................................................................................... 33 3.3.2 Benefits of Telemedicine ......................................................................................................... 34 i World-Class Communications Infrastructure in Westminster May 2013 Page ii 3.3.2.1 Ameliorating Staffing Shortages ................................................................................. 34 3.3.2.2 Reducing Costs and Other Economic Benefits ...................................................... 36 3.3.2.3 Monitoring Chronic Conditions ................................................................................... 38 3.3.2.4 Enabling Electronic Medical Records ....................................................................... 40 3.3.3 Bandwidth Requirements of Telemedicine ..................................................................... 42 3.4 The Residential Market Increasingly Requires High Capacity ......................................... 47 4. Advantages of Fiber over Other Broadband Technologies......................................................... 53 4.1 Wireline Architectures ...................................................................................................................... 53 4.1.1 Fiber-to-the-Premises .............................................................................................................. 53 4.1.1.1 International FTTP ............................................................................................................ 55 4.1.1.2 FTTP in the United States ............................................................................................... 56 4.1.2 Hybrid Fiber–Coaxial Cable .................................................................................................... 57 4.1.3 Digital Subscriber Line ............................................................................................................. 60 4.2 Wireless Architectures ...................................................................................................................... 61 4.2.1 “3G” and “4G” Technologies ................................................................................................... 61 4.2.2 Limitations of Existing Wireless Technologies .............................................................. 63 4.3 Other Technologies Are Not Capable of Speeds Enabled by Fiber ................................. 64 4.3.1 Fiber Holds Advantage over Copper/Coaxial Technologies .................................... 65 4.3.2 Fiber Holds Advantage over Wireless Technologies ................................................... 67 5. The Current State of Broadband Services in Westminster ......................................................... 69 6. Residential Survey Results from Prior Market Research ............................................................ 76 6.1 Survey Process ...................................................................................................................................... 78 6.2 Survey Results ....................................................................................................................................... 79 6.2.1 Internet Service ........................................................................................................................... 79 World-Class Communications Infrastructure in Westminster May 2013 Page iii Computers and Internet Access ........................................................................................................ 79 Internet Connection ............................................................................................................................... 81 Connection Speed ................................................................................................................................... 83 Type of Internet User ............................................................................................................................ 83 Uses of Internet ........................................................................................................................................ 85 Main Internet Provider ......................................................................................................................... 87 Monthly Internet Cost ........................................................................................................................... 88 Importance and Satisfaction with Internet Service Aspects ................................................ 89 Likelihood of Switching to Very Fast Internet Service ........................................................... 92 6.2.2 Television Service ....................................................................................................................... 94 Television Programming ..................................................................................................................... 94 Television Service Cost ......................................................................................................................... 95 Importance and Satisfaction with Television Service Aspects ............................................ 96 6.2.3 Telephone Service ...................................................................................................................... 97 Type of Telephone Service .................................................................................................................. 98 6.2.4 Enhanced Communications Services ................................................................................. 98 Importance of Enhanced Service Features .................................................................................. 98 Home-Based Business Internet Service Needs .......................................................................... 99 6.2.5 Telecommuting .......................................................................................................................... 100 Employment Status .............................................................................................................................. 101 Method of Commuting ........................................................................................................................ 101 Telecommuting ...................................................................................................................................... 102 Commuting .............................................................................................................................................
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