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 How do you compete with that when you are stuck with an out of date, co-axial, wired network?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 )

 

Community Search:
MacTech Search:

Software Updates via MacUpdate

OmniOutliner Pro 4.2 - Pro version of th...
OmniOutliner Pro is a flexible program for creating, collecting, and organizing information. Give your creativity a kick start by using an application that's actually designed to help you think. It's... Read more
VLC Media Player 2.2.1 - Popular multime...
VLC Media Player is a highly portable multimedia player for various audio and video formats (MPEG-1, MPEG-2, MPEG-4, DivX, MP3, OGG, ...) as well as DVDs, VCDs, and various streaming protocols. It... Read more
Nisus Writer Pro 2.1.1 - Multilingual wo...
Nisus Writer Pro is a powerful multilingual word processor, similar to its entry level products, but brings new features such as table of contents, indexing, bookmarks, widow and orphan control,... Read more
Tinderbox 6.2.0 - Store and organize you...
Tinderbox is a personal content management assistant. It stores your notes, ideas, and plans. It can help you organize and understand them. And Tinderbox helps you share ideas through Web journals... Read more
OmniOutliner 4.2 - Organize your ideas,...
OmniOutliner is a flexible program for creating, collecting, and organizing information. Give your creativity a kick start by using an application that's actually designed to help you think. It's... Read more
Things 2.5.4 - Elegant personal task man...
Things is a task management solution that helps to organize your tasks in an elegant and intuitive way. Things combines powerful features with simplicity through the use of tags and its intelligent... Read more
NeoOffice 2014.10 - Mac-tailored, OpenOf...
NeoOffice is a complete office suite for OS X. With NeoOffice, users can view, edit, and save OpenOffice documents, PDF files, and most Microsoft Word, Excel, and PowerPoint documents. NeoOffice 3.x... Read more
iPhoto Library Manager 4.2 - Manage mult...
iPhoto Library Manager allows you to organize your photos among multiple iPhoto libraries, rather than having to store all of your photos in one giant library. You can browse the photos in all your... Read more
Web Snapper 3.3.8 - Capture entire Web p...
Web Snapper lets you capture Web pages exactly as they appear in your browser. You can send them to a file as images or vector-based, multi-page PDFs. It captures the whole Web page - eliminating the... Read more
TeamViewer 10.0.41404 - 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

Chainsaw Warrior: Lords of the Night has...
It's time to put the Darkness back in its place now that Chainsaw Warrior: Lords of the Night has officially made it to iOS. | Read more »
A World of Ice and Fire Lets You Stalk 2...
George R. R. Martin’s A World of Ice and Fire, by Random House, is a mobile guide to the epic series. The new update gives you the Journeys map feture that will let you track the movements of 25 different characters. But don't worry, you can protect... | Read more »
Gameloft Announces Battle Odyssey, a New...
Battle Odyssey, Gameloft's newest puzzle RPG, is coming to the App Store next week. Set in the world of Pondera, you will need to control the power of the elements to defend the world from evil. You'll be able to entlist over 500 allies to aid you... | Read more »
Fusion - HDR Camera (Photography)
Fusion - HDR Camera 1.0.0 Device: iOS Universal Category: Photography Price: $1.99, Version: 1.0.0 (iTunes) Description: Fusion creates HDR (high dynamic range) photos by capturing different exposures and then combining them into one... | Read more »
Sago Mini Toolbox (Education)
Sago Mini Toolbox 1.1 Device: iOS Universal Category: Education Price: $2.99, Version: 1.1 (iTunes) Description: Come build with the Sago Mini friends! Use a wrench, try a saw, or hammer some nails. From sewing hand puppets to... | Read more »
You Should Probably Grab Hitman GO While...
Hitman GO is a surprisingly cool (yet also incredibly drastic) departure from the Hitman series. It's well worth playing for any puzzle game fans out there, and at the moment you can get your hands - or garrotte if you will - on it for a mere $0.99... | Read more »
IFTTT is Bringing Do Button and Do Note...
IFTTT has announced Do Button and Do Note for the Apple Watch. Do Button lets you make your own personalized button that can connect to things like your Google Drive, control the temperature in your home with Nest Thermostat, or turn the lights on... | Read more »
How Many Days, Hours, and Minutes Are Le...
Countdown, by Yves Tscherry, is now available on the App Store. The app keeps track of countdowns to your favorite things such as someones birthday or days till the New Year. You can display the time in seconds, minutes, hours, days, weeks, months,... | Read more »
The All-New Misfit 2.0 App is Available...
Misfit has just given their app a complete overhaul. Misfit 2.0 now has a brand new interface with a sleek design and is easier to navigate. You'll be able to sync your Misfit device and look up health and fitness information faster than ever before... | Read more »
Halo: Spartan Strike (Games)
Halo: Spartan Strike 1.0 Device: iOS Universal Category: Games Price: $5.99, Version: 1.0 (iTunes) Description: Delve into 30 challenging missions through cities and jungles using a devastating arsenal of weapons, abilities and... | Read more »

Price Scanner via MacPrices.net

TigerText Introduces First Secure Enterprise...
TigerText, a provider of secure, real-time messaging for the enterprise, has announced the launch of TigerText for the Apple Watch. TigerText for the Apple Watch enables users to securely send and... Read more
The Conservation Fund Partners with Apple To...
The Conservation Fund has announced that it will partner with Apple to help protect working forests in the United States. The Apple initiative will conserve more than 36,000 acres of working... Read more
Clearance 13-inch 2.6GHz Retina MacBook Pro a...
B&H Photo has clearance 2014 13″ 2.6GHz/128GB Retina MacBook Pros now available for $1099, or $200 off original MSRP. Shipping is free, and B&H charges NY sales tax only. Read more
Apple refurbished 2014 13-inch Retina MacBook...
The Apple Store has Apple Certified Refurbished 2014 13″ Retina MacBook Pros available for up to $400 off original MSRP, starting at $979. An Apple one-year warranty is included with each model, and... Read more
iMacs on sale for up to $205 off MSRP, NY tax...
B&H Photo has 21″ and 27″ iMacs on sale for up to $205 off MSRP including free shipping plus NY sales tax only: - 21″ 1.4GHz iMac: $1019 $80 off - 21″ 2.7GHz iMac: $1189 $110 off - 21″ 2.9GHz... Read more
Sale! 16GB iPhone 5S for $1 with service
Best Buy is offering 16GB iPhone 5Ss for $1.00 with 2-year activation at a participating cellular provider. Choose free home shipping and activation, or buy online and activate during in-store pickup... Read more
Apple refurbished 2014 MacBook Airs available...
The Apple Store has Apple Certified Refurbished 2014 MacBook Airs available starting at $679. An Apple one-year warranty is included with each MacBook, and shipping is free. These are currently the... Read more
27-inch 3.5GHz 5K iMac on sale for $2349, sav...
 Adorama has the 27″ 3.5GHz 5K iMac in stock today and on sale for $2349 including free shipping plus NY & NJ sales tax only. Their price is $150 off MSRP. For a limited time, Adorama will... Read more
Save up to $380 on an iMac with Apple refurbi...
The Apple Store has Apple Certified Refurbished iMacs available for up to $380 off the cost of new models. Apple’s one-year warranty is standard, and shipping is free: - 27″ 3.5GHz 5K iMac – $2119 $... Read more
iFixIt Teardown Awards 12-IInch Retina MacBoo...
iFixIt has posted its illustrated teardown of the new 12-inch MacBook Retina. They note that this new MacBook is less than half the thickness of the last Apple notebook called just “MacBook” back in... Read more

Jobs Board

*Apple* Solutions Consultant - Retail Sales...
**Job Summary** As an Apple Solutions Consultant (ASC) you are the link between our customers and our products. Your role is to drive the Apple business in a retail Read more
*Apple* Retail - Multiple Positions (US) - A...
Sales Specialist - Retail Customer Service and Sales Transform Apple Store visitors into loyal Apple customers. When customers enter the store, you're also the Read more
Technical Project Manager - *Apple* Pay - A...
**Job Summary** Apple Pay is seeking an experienced technical PM to…manage the on boarding of new merchants for the Apple Pay platform in the US Within this role you Read more
Senior Identity Architect - *Apple* Pay - A...
**Job Summary** Apple , Inc. is looking for a highly motivated, innovative and hands-on senior identity architect to join the Apple Pay Engineering team. You will Read more
Program Manager, *Apple* Retail Global Tale...
…for the worldwide creation and implementation of the key talent development initiatives within Apple Retail. He or she will work closely with our Retail Corporate team, Read more
All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.