Presentation on theme: "Technology Workshop: Strategies to Help Take Your Business to the Next Level at the Illinois State Black Chamber of Commerces 2 nd Annual Statewide Convention."— Presentation transcript:
Technology Workshop: Strategies to Help Take Your Business to the Next Level at the Illinois State Black Chamber of Commerces 2 nd Annual Statewide Convention William L. Kovacs Vice President, Environment, Technology & Regulatory Affairs U.S. Chamber of Commerce Friday, August 24, 2007 Hyatt Regency, Chicago, IL 10:45 a.m. – 12:00 p.m.
4 5, 6 *Employer firms make up 25% of all businesses but account for 97% of business activity in terms of sales or receipts **Non-employer firms make up 75% of all businesses but only account for 3% of business activity in terms of sales or receipts * **
5 WhiteBlackHispanicAsianNative/Islander Percentage of Revenue by Race for Employer and Non-Employer Firms Asian 3.6% Black.08% Hispanic 2.2% White 93.1% Native/Islander 0.03% Asian 4.5% Black 2.9% Hispanic 5.4% White 86.4% Native/Islander 0.7% Employer Firm Revenue by Race (%) Non-Employer Firm Revenue by Race (%) 7
14 Purchasing Patterns of Web Savvy Shoppers 79% of U.S. online consumers researched products online during the past 3 months 57% of U.S. online consumers purchased products online during the same period 51% of U.S. online consumers are cross-channel shoppers (research online purchase offline last 3 months) Consumers who research products online before buying them offline will influence more than $500 billion of offline sales in 2007 Over half of online consumers research online but purchase in store Almost $400 billion of store sales – or 16% of total retail sales – are directly influenced by the Web as consumers research products online and purchase them offline Offline sales not influenced by the Web will decrease 24% by 2012 20, 21, 22, 23
17 What Steps Should be Taken to Increase Broadband Deployment and Usage Among Minority Populations? Access (supply) If broadband is not available, how do we get it out there? Rate of Subscribership (demand) If broadband is available, how do we increase the percentage of customers who sign up for broadband service?
18 Total of Relevant Federal Telecom and Broadband Spending for FY 2006 Major Federal Telecom & Broadband Programs $7.7 billion Other Federal Broadband Programs $920.2 million Total Spending$8.6 billion
19 Major Federal Telecom and Broadband Programs 26,27,28 ProgramAgencyDescriptionFY2006 (obligations) Universal Service High- Cost program Universal Service Administrative Company (USAC)/Federal Communications Commission (FCC) The goal of this program is to ensure that consumers in rural, insular, and other high cost areas have access to telecommunications and information services, including interexchange services and advanced telecommunications and information services that are reasonably comparable to those services provided in urban areas. $4.1 billion Universal Service Low- Income program USAC/FCCThis support, commonly known as Lifeline and Link Up, provides discounts that make basic, local telephone service affordable for more than seven million low-income consumers. $820.4 million Universal Service Rural Health Care program USAC/FCCThis support provides reduced rates to rural health care providers for telecommunications and Internet services so they pay no more than their urban counterparts for the same or similar telecommunications services. $40.1 million Universal Service Schools & Libraries program USAC/FCCThis support, commonly referred to as E-rate support, provides affordable telecommunications and Internet access services to connect schools and libraries to the Internet. $1.7 billion
20 Rural Broadband Access Loan and Loan Guarantee Program Rural Utilities Service (RUS), U.S. Department of Agriculture (USDA) This Program helps facilitate the construction, improvement, and acquisition of facilities and equipment for broadband service in eligible rural communities. The Programs goal is to ensure that rural consumers enjoy the same quality and range of telecommunications services that are available in urban and suburban communities. $329.2 million* Community Connect Broadband Grant Program RUS, USDAThis Program is designed to provide financial assistance to furnish broadband service in rural, economically-challenged communities where such service does not currently exist. $8.9 million Distance Learning and Telemedicine Program RUS, USDAThis Program provides funding for telecommunications, computer networks, and related technologies to facilities that target rural students, teachers, medical professionals, and residents. $39.5 million The Traditional Infrastructure Program and Rural Telephone Bank RUS, USDAThe Rural Telephone Bank is a traditional infrastructure loan program that provides financing of broadband and other advanced services. $689.8 million Subtotal$7.7 billion * Available funding for loans and loan guarantees was $1.085 billion but all available funds were not awarded.
21 Other Federal Broadband Programs ProgramAgencyDescriptionFY2006 (obligations) Public Telecommunications Facilities Planning and Construction National Telecommunications and Information Administration, Dept. of Commerce Assists in planning, acquisition, installation and modernization of public telecommunications facilities $19.7 million Grants for Public Works and Economic Development Facilities Economic Development Administration, Dept. of Commerce Provides grants to economically distressed areas for construction of public facilities and infrastructure, including broadband deployment and other types of telecommunications enabling projects. $158.1 million Education Technology State Grants Office of Elementary and Secondary Education, Dept. of Education Grants to State Education Agencies for development of information technology to improve teaching and learning in schools $272 million Star SchoolsOffice of Assistant Secretary for Educational Research and Improvement, Dept. of Education Grants to telecommunication partnerships for telecommunications facilities and equipment, educational and instructional programming $14.8 million Ready to TeachOffice of Assistant Secretary for Educational Research and Improvement, Dept. of Education Grants to carry out a national telecommunications-based program to improve the teaching in core curriculum areas. $10.9 million Special Education Technology and Media Services for Individuals with Disabilities Office of Special Education and Rehabilitative Services, Dept. of Education Supports development and application of technology and education media activities for disabled children and adults $3.4 million 29
22 Medical Library Assistance National Library of Medicine, National Institutes of Health, Department of Health and Human Services Provides funds to train professional personnel; strengthen library and information services; facilitate access to and delivery of health science information; plan and develop advanced information networks; support certain kinds of biomedical publications; and conduct research in medical informatics and related sciences $65.2 million State Library ProgramOffice of Library Services, Institute of Museum and Library Services, National Foundation on the Arts and the Humanities Grants to state library administrative agencies for promotion of library services that provide all users access to information through State, regional, and international electronic networks $163.7 Million Native American and Native Hawaiian Library Services Office of Library Services, Institute of Museum and Library Services, National Foundation on the Arts and the Humanities Supports library services including electronically linking libraries to networks $3.6 million Appalachian Area Development Appalachian Regional Commission Provides project grants for Appalachian communities to support the physical infrastructure necessary for economic development and improved quality of life. $62 million Delta Area Economic Development Delta Regional AuthorityGrants to support self-sustaining economic development of eight states in Mississippi Delta region. $7.8 million Denali Commission Program Denali CommissionProvides grants through a federal and state partnership designed to provide critical infrastructure and utilities throughout Alaska, particularly in distressed communities $139 million Subtotal$920.2 million
23 Recommendations Advocate for Executive Order creating a White House Office of Broadband Policy to coordinate the activities of the 9 federal agencies that are managing 20 programs aimed at ensuring that Americans have access to telecommunications and broadband. Work with U.S. Chamber members, local chambers of commerce, policymakers, and all other interested groups to support existing efforts to make broadband available all across the United States and to increase the demand for the technology through state and local grassroots awareness/adoption campaigns. Support reforming federal broadband programs to ensure that funds are directed to unserved and underserved areas and populations.