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 How do you compete with that when you are stuck with an out of date, co-axial, wired network?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

Pocket Arcade Story (Games)
Pocket Arcade Story 1.00 Device: iOS Universal Category: Games Price: $4.99, Version: 1.00 (iTunes) Description: Here comes a new challenger: it's the arcade simulation game you've been waiting for! Build your very own gaming... | Read more »
How to get coins faster in Rodeo Stamped...
There comes a time in a cowboy or cowgirl's life when all the riding and lassoing skills in the world aren't enough. You're going to need some cold, hard cash to keep your sky zoo expanding in Rodeo Stampede. [Read more] | Read more »
How to out-do Cam Newton in Can You Dab?
The thing about dance crazes is that you're never really sure when they've run their course. Take the Dab, for instance. Propelled by its adoption as the touchdown celebration of choice for Carolina Panthers quarterback Cam Newton, the Dab seemed... | Read more »
Artik Games releases Splashy Cats for An...
Splashy Cats had us hooked from the title alone, and when we found out the game was literally just zig-zagging one of our favourite pop-culture references, guised as a playable cat character, down a river – our appetites were whetted to say the... | Read more »
Battle Cars (Games)
Battle Cars 1.1 Device: iOS Universal Category: Games Price: $1.99, Version: 1.1 (iTunes) Description: Welcome to the world of Battle Cars. Battle Cars is a classic arcade top-down racing game with fast mini cars and funny weapons to... | Read more »
How to get started with live.ly
One could be forgiven for thinking that there are already plenty of streaming video apps out there. It's just that the App Store charts would insist that you're mistaken. [Read more] | Read more »
Rodeo Stampede: Guide to all Savannah an...
A "gotta catch 'em all" joke seems appropriate here, even though we're talking animals in Rodeo Stampede and not pocket monsters. By now you've probably had plenty of rides, tamed some animals and built yourself a pretty nice zoo | Read more »
Is there cross-platform play in slither....
So you've sunken plenty of hours into crawling around in slither.io on your iPhone or iPad. You've got your stories of tragedy and triumph, the times you coiled four snakes at one time balanced out by the others when you had a length of more than... | Read more »
Rodeo Stampede guide to running a better...
In Rodeo Stampede, honing your skills so you can jump from animal to animal and outrun the herd as long as possible is only half the fun. Once you've tamed a few animals, you can bring them home with you. [Read more] | Read more »
VoxSyn (Music)
VoxSyn 1.0 Device: iOS Universal Category: Music Price: $6.99, Version: 1.0 (iTunes) Description: VoxSyn turns your voice into the most flexible vocal sound generator ever. Instantly following even subtle modulations of pitch and... | Read more »

Price Scanner via MacPrices.net

Why Use Indie Opera And Vivaldi Instead Of Sa...
For many years my web browser workhorses were various permutations and spinoffs of the Netscape/Mozilla/Firefox Open Source platform, and the Norwegian indie browser Opera, which I took a shine to... Read more
Western Digital Launches Worlds Fastest 256GB...
At the Mobile World Congress in Shanghai Western Digital Corporation this week introduced a new suite of 256 gigabyte (GB) microSD cards, which includes the new 256GB SanDisk Extreme microSDXC UHS-I... Read more
KeyCue 8.1 Integrates With Typinator To Displ...
Ergonis Software has released KeyCue 8.1, a new version of the company’s keyboard shortcut cheat sheet. KeyCue 8 introduced a new way to define a wide variety of triggers, which can be used to... Read more
Save up to $600 with Apple refurbished Mac Pr...
Apple has Certified Refurbished Mac Pros available for up to $600 off the cost of new models. An Apple one-year warranty is included with each Mac Pro, and shipping is free. The following... Read more
21-inch 2.8GHz iMac on sale for $1199, save $...
Amazon has the 21″ 2.8GHz iMac (model #MK442LL/A) on sale for $1199.99 including free shipping. Their price is $100 off MSRP, and it’s the lowest price available for this model. Read more
13-inch 2.5GHz MacBook Pro (Apple refurbished...
Apple has Certified Refurbished 13″ 2.5GHz MacBook Pros available for $829, or $270 off the cost of new models. Apple’s one-year warranty is standard, and shipping is free: - 13″ 2.5GHz MacBook Pros... Read more
MacBook Airs on sale for up to $50-$100 off M...
B&H Photo has 13″ and 11″ MacBook Airs on sale for up to $100 off MSRP. Shipping is free, and B&H charges NY sales tax only: - 11″ 1.6GHz/128GB MacBook Air: $849 $50 off list price - 11″ 1.... Read more
Brexit Vote Result Forecast To Slash UK 2016...
Uncertainty and economic volatility can be expected to increase over the next nine months, as the Brexit and concerns over the future of the EU hit IT investment, say Canalys market analysts, with... Read more
13-inch 256GB MacBook Air on sale for $1149,...
Amazon has the 2016 13″ 1.6GHz/256GB MacBook Air (model MMGG2LL/A) on sale for $1149.99 including free shipping. Their price is also $50 off MSRP. Read more
Haven App Launches New Age Of Wirless 911 Eme...
Haven from RapidSOS represents a transformation in access to emergency services from a phone call solely dependent on voice to a robust data connection for voice, text, medical/demographic data.... Read more

Jobs Board

*Apple* iPhone 6s and New Products Tester Ne...
…we therefore look forward to put out products to quality test for durability. Apple leads the digital music revolution with its iPods and iTunes online store, Read more
*Apple* iPhone 6s and New Products Tester Ne...
…we therefore look forward to put out products to quality test for durability. Apple leads the digital music revolution with its iPods and iTunes online store, Read more
*Apple* Retail - Multiple Positions, Willow...
Job Description: Sales Specialist - Retail Customer Service and Sales Transform Apple Store visitors into loyal Apple customers. When customers enter the store, Read more
*Apple* iPhone 6s and New Products Tester Ne...
…we therefore look forward to put out products to quality test for durability. Apple leads the digital music revolution with its iPods and iTunes online store, Read more
*Apple* iPhone 6s and New Products Tester Ne...
…we therefore look forward to put out products to quality test for durability. Apple leads the digital music revolution with its iPods and iTunes online store, Read more
All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.