Greg's bite: indirect economics, 1 Gig for KCK
TweetFollow Us on Twitter

Greg's bite: indirect economics, 1 Gig for KCK

By Greg Mills

The ballyhoo that went up when Kansas City, Kansas, won the Google 1 Gig lottery was based upon the anticipated economic effects we hope to see here. Kansas City, Kansas has suffered from the recession, much like the rest of the country.  

Unemployment is a major issue for 9% of us. Real estate values have also suffered dramatically.  The effect of the Google network coming to town is a complicated parameter with possible side effects no one can fully foresee, most of them good. 

To our established local cable TV company, the Google 1 Gig network is an economic disaster. I have a TimeWarner Cable modem Internet bill on my desk as I write this for US$50 that will soon go to Google instead. No one is going to put up with the intermittent 6 Megs a second cable modem when they can have 1000 Megs a second on a more stable fiber optic network. Google promises to sell 1 Gig symmetrical Internet for current broadband prices to everyone. How do you compete with that when you are stuck with an out of date, co-axial, wired network?

In Chattanooga, the fiber optic internet speeds are prices in tiers. You pay $57.99 for 30 Mbps (Megabytes per second), $69.99 for 50 Mbps and $139.99 for 100 Mbps. For a full Gig you pay $350 a month.  Cable modem providers there can compete with $39. a month for cable broadband in Chattanooga. In Kansas City, Google is undercutting them at the ankles, offering a full Gig for a cable modem price point to everyone.  

Commercial real estate brokers here are excited, anticipating new companies moving into town to hook up to the super fast Internet we will soon have. One broker mentioned at a Google town meeting the other night that her phone was ringing off the hook from business people from out of the area who were interested in commercial vacant land. That is way cool. We have abundant vacant land, relatively low land prices, an eager-to-accommodate new business city administration and now super fast Internet at bargain prices. Sounds like a winning combination to me.  

As part of my research for this article, I contacted commercial real estate brokers in Chattanooga, Tennessee, to find out what happened there when the Department of Energy provided $111 million dollars for them to put in 1 Gig fiber optic Internet. Their system was turned on a bit over a year ago. The first broker I spoke with discounted the fast Internet and said that he hadn't seen any effect at all. His firm hadn't even hooked up to the new fiber optic Internet since cable modem was cheaper.

The second Chattanooga broker I spoke with said that her firm had sold vacant land to Amazon.com for a new data center and to Volkswagen auto for a new plant.  Amazon needed to hook up to the Internet backbone at a point where they could manage serious data traffic for data streaming businesses they are developing. Volkswagen wanted to be able to view virtual auto parts with Germany in real time. The broker knows for a fact that the thing that "sold" the deal in both cases was the fast Internet. They had vacant land and priced it competitively, but super fast Internet is very attractive to companies that can use it.

The local job situation in KCK will certainly be helped long term. A collective sigh of disappointment came up from the town meeting crowd (estimated to be from 500 to 1,000 depending on whom you ask) when the Google rep stated that they were not going to hire more than perhaps two locals to run the new system. They will be doing  the customer service on-line remotely and will contract nationally for the best deal for the fiber cable construction work.  Surprising little economic effect from direct hires is anticipated from Google.

If, in fact, high tech companies are coming to town due to the new fast Internet, we will see long term employment increases rather than just short term jobs. Educated people are most likely to get the good jobs, but even low paying jobs such as janitorial will see more demand with more businesses in town.  Our motels and stores may see more business generally, over time. Food service companies will serve more meals, gas stations pump more gas, etc.  Tax rolls will be helped as well.

Kansas City can certainly roll out the red carpet by being helpful to new companies coming to town by exercising restraint in adding tax loads to business and commercial property.  KCK has actually given sales tax wavers to tempt new businesses to come into town.  Such inducements go a long way in developing the long term favorable business situation for our town.

The local universities and colleges will certainly be likely to enhance or add majors related to high speed Internet applications. Once the system is built out, the interesting creative environment Google is providing will have been established. Then, we will see what new innovation pops up.  

I am of the opinion that along with the generous 1 Gig at broadband prices being offered by Google, a free Wi-Fi network in the poorer areas of town will serve our community well. Kids get free loaner MacBooks from the school district, but have to go to McDonalds for access to the Internet, since their families can't afford cable modem service. The promise of fast Internet for the entire city is very hollow for those at the bottom of the economic heap. Knowing there is 1 Gig fiber optic cable going down the street won't matter if the families on welfare can't afford to hook up.

Google put a city wide Wi-Fi system in for a wealthy suburb of San Francisco called Mountain View. City street lights and phone poles had Google owned Wi-Fi devices mounted on them.  Google spent about a million dollars putting the system in for an area of about 12 square miles.  They even pay the city of Mountain View $36 a year to rent space on each of the phone poles they use.  

Google's deal with KCK is for free access to all city owned utility property including utility poles and light poles. The system in Mountain View used a total of about 380 Wi-Fi "nodes." Newer transmitters have wider coverage and since KCK gives Google free access to city owned poles, the cost would be much lower to help our poor folks with free Wi-Fi. With the Internet fiber already planned for the neighborhood, hooking up local Wi-Fi routers would be a natural step. If Google won't do it, perhaps the city should. 

That's Greg's Bite for today, coming to you from KCK.

(Greg Mills is currently a graphic and Faux Wall Artist in Kansas City. Formerly a new product R&D man for the paint sundry market, he holds 11 US patents. Greg is an Extra Class Ham Radio Operator, AB6SF, iOS developer and web site designer. He's also working on a solar energy startup using a patent pending process for turning waste dual pane glass window units into thermal solar panels used to heat water see: www.CottageIndustySolar.com Married, with one daughter, Greg writes for intellectual property web sites and on Mac/Tech related issues. See Greg's art web site at http://www.gregmills.info He can be emailed at gregmills@mac.com )

 
AAPL
$567.34
Apple Inc.
+42.59
MSFT
$39.37
Microsoft Corpora
-0.32
GOOG
$527.22
Google Inc.
+0.28

MacTech Search:
Community Search:

Software Updates via MacUpdate

Cyberduck 4.4.4 - FTP and SFTP browser....
Cyberduck is a robust FTP/FTP-TLS/SFTP browser for the Mac whose lack of visual clutter and cleverly intuitive features make it easy to use. Support for external editors and system technologies such... Read more
TechTool Pro 7.0.3 - Hard drive and syst...
TechTool Pro is now 7, and this is the most advanced version of the acclaimed Macintosh troubleshooting utility created in its 20-year history. Micromat has redeveloped TechTool Pro 7 to be fully 64... Read more
MacFamilyTree 7.1.6 - Create and explore...
MacFamilyTree gives genealogy a facelift: it's modern, interactive, incredibly fast, and easy to use. We're convinced that generations of chroniclers would have loved to trade in their genealogy... Read more
EtreCheck 1.9.9 - For troubleshooting yo...
EtreCheck is a simple little app to display the important details of your system configuration and allow you to copy that information to the Clipboard. It is meant to be used with Apple Support... Read more
TeamViewer 9.0.28116 - Establish remote...
TeamViewer gives you remote control of any computer or Mac over the Internet within seconds, or can be used for online meetings. Find out why more than 200 million users trust TeamViewer! Free for... Read more
Viber 4.1.0 - Send messages and make cal...
Viber lets you send free messages and make free calls to other Viber users, on any device and network, in any country! Viber syncs your contacts, messages and call history with your mobile device,... Read more
Apple iOS 7.1.1 - The latest version of...
The latest version of iOS can be downloaded through iTunes. Apple iOS 7 brings an all-new design and all-new features. Simplicity Simplicity is often equated with minimalism. Yet true simplicity is... Read more
1Password 4.3 - Powerful password manage...
1Password is a password manager that uniquely brings you both security and convenience. It is the only program that provides anti-phishing protection and goes beyond password management by adding Web... Read more
Lens Blur 1.3.0 - True out-of-focus boke...
Let Lens Blur transform your existing photo into true SLR-quality out-of-focus bokeh effect! Everyone needs a gorgeous personalized background for a social profile, blog, Web/UI design, presentation... Read more
VMware Fusion 6.0.3 - Run Windows apps a...
VMware Fusion allows you to create a Virtual Machine on your Mac and run Windows (including Windows 8.1) and Windows software on your Mac. Run your favorite Windows applications alongside Mac... Read more

Latest Forum Discussions

See All

Yomi Review
Yomi Review By Rob Thomas on April 24th, 2014 Our Rating: :: C-C-C-COMBO BREAKERiPad Only App - Designed for the iPad Round One – Fight! No quarters required for this iOS adaptation of a tabletop adaptation of the arcade fighting... | Read more »
Injustice: Gods Among Us Updated with Ne...
Injustice: Gods Among Us Updated with New Characters, Leaderboards, Gear, and Online Multiplayer Posted by Rob Rich on April 24th, 2014 [ | Read more »
Spin It Review
Spin It Review By Jordan Minor on April 24th, 2014 Our Rating: :: SPIN ME RIGHT ROUNDUniversal App - Designed for iPhone and iPad Spin It has a fine puzzle game model, but its execution lacks energy.   | Read more »
Productivity App NoteSuite is Having its...
Productivity App NoteSuite is Having its Biggest Sale Ever, Just for One Week Posted by Rob Rich on April 24th, 2014 [ permalink ] | Read more »
Wayward Souls Review
Wayward Souls Review By Carter Dotson on April 24th, 2014 Our Rating: :: CARRY ON, WAYWARD SONUniversal App - Designed for iPhone and iPad Wayward Souls is a roguelike-inspired action-RPG that sets a high bar for other games to... | Read more »
The Sandbox Gets Update, Receives New Ca...
The Sandbox Gets Update, Receives New Campaign and New Elements Posted by Tre Lawrence on April 24th, 2014 [ permalink ] Universal App - Designed for iPhone and iPad | Read more »
Football Management Simulator One For El...
Football Management Simulator One For Eleven Released Worldwide Today for iOS Posted by Simon Reed on April 24th, 2014 [ permalink ] Free-To-Play football management title One For E | Read more »
Leo’s Fortune Review
Leo’s Fortune Review By Jordan Minor on April 24th, 2014 Our Rating: :: FORTUNATE SONUniversal App - Designed for iPhone and iPad Leo’s Fortune delivers a platforming experience as creative and refined as any console game.   | Read more »
Suited Up (Games)
Suited Up 1.0 Device: iOS Universal Category: Games Price: $1.99, Version: 1.0 (iTunes) Description: Suited Up is a difficult, one-touch platformer that requires players to visualize each jump. The controls in Suited Up are simple,... | Read more »
MyTP One Mountain - Ski, Freeski and Sno...
MyTP One Mountain - Ski, Freeski and Snowboard 1.0.0 Device: iOS Universal Category: Games Price: $.99, Version: 1.0.0 (iTunes) Description: As real snow is melting away in the snow parks around the northern hemisphere, it's now time... | Read more »

Price Scanner via MacPrices.net

16GB 1st generation iPad mini available for $...
Radio Shack has a select number of refurbished 1st generation 16GB WiFi iPad minis available for $199.99 on their online store. Choose free shipping or free ship-to-store. We expect these to sell out... Read more
13-inch 2.5GHz MacBook Pro on sale for $100 o...
B&H Photo has the 13″ 2.5GHz MacBook Pro on sale for $1099 including free shipping plus NY sales tax only. Their price is $100 off MSRP. Read more
iPad Sales “Lull” A Reality Correction Of Unm...
I have lots of time for Jean-Louis Gassée, the former Apple Computer executive (1981 to 1990) who succeeded Steve Jobs as head of Macintosh development when the latter was dismissed in 1985. Mr.... Read more
Apple Makes OS X Betas Available To All – Wit...
Apple’s OS X Beta Seed Program, which lets you install the latest pre-release builds, try it out, and submit your feedback, is now open to anyone who wants to sign on rather than to developers and... Read more
Apple Releases iOS 7.1.1 Update
The latest iOS 7.1.1 update contains improvements, bug fixes and security updates, including: • Further improvements to Touch ID fingerprint recognition • Fixes a bug that could impact keyboard... Read more
Logitech Announces Thinner, Lighter, More Fle...
Logitech has announced an update to its Ultrathin for iPad Air, iPad mini and iPad mini with Retina display, improving the flexibility and design of its award-winning predecessor with an even thinner... Read more
Logitech Introduces Hinge, Big Bang and Turna...
Logitech has announced expansion of its tablet product line with three new cases – the Logitech Hinge, the Logitech Big Bang and the Logitech Turnaround – each for the iPad Air, iPad mini and iPad... Read more
WaterField’s Rough Rider Leather Messenger Ba...
WaterField Designs have announced the new 15-inch size of their popular Rough Rider leather messenger bag, a vintage-looking bag that combines Old West charm and ruggedness with distinctly modern... Read more
New Mac Pro on sale, save $100 on the 4-Core...
J&R has the new 4-Core Mac Pro in stock today and on sale for $2899 including free shipping plus NY sales tax only. Their price is $100 off MSRP, and it’s the lowest price available for this... Read more
Apple refurbished iMacs available for up to $...
The Apple Store has Apple Certified Refurbished 2013 iMacs available for up to $300 off the cost of new models. Apple’s one-year warranty is standard, and shipping is free. - 27″ 3.4GHz iMac – $1699... Read more

Jobs Board

*Apple* Solutions Consultant (ASC) - Apple (...
**Job Summary** The ASC is an Apple employee who serves as an Apple brand ambassador and influencer in a Reseller's store. The ASC's role is to grow Apple Read more
*Apple* Solutions Consultant (ASC) - Apple (...
**Job Summary** The ASC is an Apple employee who serves as an Apple brand ambassador and influencer in a Reseller's store. The ASC's role is to grow Apple Read more
Position Opening at *Apple* - Apple (United...
…customers purchase our products, you're the one who helps them get more out of their new Apple technology. Your day in the Apple Store is filled with a range of Read more
*Apple* Solutions Consultant (ASC) - Apple (...
**Job Summary** The ASC is an Apple employee who serves as an Apple brand ambassador and influencer in a Reseller's store. The ASC's role is to grow Apple Read more
*Apple* Inc. Research Data Specialist - Appl...
…of Worldwide Market Research & Intelligence. The team is responsible for conducting Apple branded consumer market research. It is also responsible for analyzing data Read more
All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.