exponential growth wait. so we're just going to focus on general numbers hand thiis going to diminish the economic gains occurringo broadband. to drill deeper and show you how we've calculated the numbers, we have the two sides, one is suppliers, and from the revenue, well, they're losing about 50% to 60% of this in cannibalized sales of dialup and second phone lines. as users switched over from their dialup service to broadband, they were dropping a service they probably paid $20 for in terms of dialup. many people had a second phone line, there's another $20 drop. so a lot of times you'll be completely offsetting in terms of measuring g.d.p. and because of this, it's going to serve to pull down the actual number that we should put for broadband. and this number is going to vary with the assumed price for broadband. we had somewhere between $36 and $40 in our paper and obvious, it's going to shift the line around a little bit g.d.p.ing on

the assumptions. -- depending on the assumptions. we should be clear up front, this is not a measure of profitability for firms, this is simply a revenue number. we don't have any difference in the cost that applies broadband to the household and balls of this, this is all we can say is revenue, but put differently, we're also -- our estimates don't imply that the firms that are supplying broadband would be losing quite a bit of money. they're kind of within the reasonable ballpark. so we're in some ways very confident with the numbers that we shouldn't see these numbers in contrast to our numbers. :

>> this is going to serve increase that contribution of broadband because we are accounted for the consumer surplus. in doing so we are not able to look at different elasticity. you can think of a teenager who is alwayon facebook and twitter. we are not factoring that in anywhere so again we're probably at more conservative estimate. also the survey is on 2002, as our experience has shifted and

we now value broadband comparatively more. would probably expect a little bit higher to pay if we did a survey today which isn't qui so bad your we stop at 2006 but i think we want to extrapolate the figures through 2009. we want to be countable with the sult. but not to jump to the imprecations of what the numbers in our paper would mean for a policy discussion, as the whole bag across the country is $15 billion, this doesn't bode ll for a cost-benefit analysis in the last mile broadband out to rur areas. think of canada cash for clunkers team is. we have a broadband for boondocks a coven. were not very optimistic that if we are only getting $15 billion in the nation, 1 billion oort two to roll out to rural are will be very effective in terms of contributing to gross domestic product or especially in the sense that we have these alternatives such as dial-up, which many users are already had

experience with. and so we feel that the firms that provide broadband have already revealed that these are probably not the most cost-effective areas. evy details cost analysis. so any subsidies that are going directly to rural household are going to come at the expense of not being offset by drastically increased benefits for household. and again, this is an analysis of household, and not businesses. and this is just the u.s. especially as we think of new technology innovations coming on line, five or so years, we think that probably a better situation would be to wait and let them more cost effective technologies come and place your. finally i just want to point to future research. if you're that interested in u.s., shane and i are currently working on doing a similar analysis for other world nations, and you canook for that later this year, if you're

particularly interested. thank you. >> will the paper be done by the end of this panel? [laughter] thanks to our next speaker is chris forman who is associate professor in the robert and stevie schmidt term professor of it management of the college of management at georgia institute of technology. he is research interests include adoption and return to it investment among business, with particular interest in the role of geography and standards on the guy of it infrastructure investment. he also sees innovation at the it software industry. >> thanks. what i'm going to talk about today is this different study about the use of broadband, and specifically what i will talk out is the diffusion of the internet among businesses contribute to divergence in wages acrs locations in the united states. what we mean by convergen is that locations with high income have lower rates of growth and

by divergence we mean those with highway level already have higher rates of growth. there is a lot of antidote evidence to support all of you but not a lot of statistics. so basically what we are going to do is work going to combine a data set on it investment and enhance internet like the commerce among businesses, combined that with data on wage roads and basically compare how changes in internet between 1995 and 2000, how that is associated with changes in wage growth across counties in the u.s. so this is a location that we will study. basically we proceed into steps. we measure the average relationship between internet and wage growth acro all counties. we're going to establish some kind of lin will show that there is an effect, although it is economically quite small, we worried a lot about a lot of the causality things that james talked about earlier, and it would also examine whether

internet investment lead to faster wage growth and higher low income areas. so i'm not going to spend a lot of time talking about the specific progression model, only say this is basically what would you. we look at how changes in advanced internet among businesses, how that is associate with changes in wage growth controlling for local democratic characteristics into the same thing ain looking to see whether that wage growth is faster than highncome, high education, high population and highly intensive energy. basically internet use among businesses as grades among regions are already doing well on a number of different areas. the i.t. investment data we use is from a private survey, one of the best available. it has data on 87000 established on advanced internet use along with a number of other dimensions of i.t. is. would aggregate us to a little over 2700 counties, and drop

about 300 where internet investment, we don't have any data and because these are locations th are very, very low densitynd there is a lot of investment data. we combine dhat with local wage data from bls from the quarterly census of employment and wages, and then also control changes in demographic hairdressing also collect some data from sensors and a variety of other places within the government. so the basic story, can really be seen into pictures. so this is a graph of changes in internet use at the county level on wage growth. and this is the average relationship between internet use and wage growth. and you can see it is upward sloping but the slope is really quite small so there is a statistically significant effect, but economically it is really quite small in our data when y look across all counties.

however, if you separate out those counties between those basically if you take the subset that have high income, education, high population and have a high faction oi.t. intensive firms, you can see the relationship is quite different. among them subset of firms exactly a strong statistically and economically significant relationship between internet use and wage growth. again, these are among the locations that already doing well along in number of different, a number of different dimensions. so i can, and the outline is we're going to establish -- so the next thing we will do, that is kind of descriptive evidence. thane do so more carel statistics first to establish that average link between investment advanced internet and wages, and then to see how that relationship differs among counties that already doing well. so basically, if you look at the average relationship, again, the

effect is statistically strong but economically relatively small. so average levels of internet use are associated with pointed to 4% in wage growth among regions with no internet use. a one standard deviation increase in the use of internet associated with about a .33 increase in wage growth here to these attacks are statistically significant, but economically not large. over this time period, which is in 1995 to 2000, average wage growth is about 20%. so the internet use is explaining relatively little of that. we do a number of -- we go to a number of statistical exercises to worry about some of the causality issues that jim and bitching about. i do want to spend a lot of time on that now, perhaps we can take those in questions. one thing we do release is to show, is to examine whether internet use is associated with wage gai prior to 1995, prior to the diffusion of the internet

as sort of a falsification or sanity test and there's no evidence evidence that that ir the case. the next thing that we do is we examine what location internet use is associated with wage growth. and basically we find that advanced internet is associated with wage growth and high income counties, and higher education counties, and also those with both high income and higher education. of course, there is aretty strong correlation between those two groups. probably one of the main takeaways from the paper, however, is the association between internet advanced internet use among businesse and local wage growth is strongest and primarily concentrated in what we call these high off after counties. these are counties again with high income, higher education, high population and large concentration of i.t. producing

and i.t. using firms. how much can we explain along those metrics? so you take those 180 counties that are high all factor counties, their rage wage growth over a sample that is 29.2% versus 20.5% f the rest of the county in our sample. so this hide all factors group advanced internet associated with 2.4 percentage points total wage growth. to put it another way, advanced internet use among business explains one quarter of the 8.7 percentage point difference between the 180 high all factor counties and the rest of the counties in our sample. so just to conclude, i probably also won't use all of my time. so the use of advanced internet technology is associated with local wage growth.

again, looking at the county, at the county level, however, it looks like the relationship is isolated to particular locations, those that have high population in which high i.t. production and use are concentrated, and those were income and skills were also high. specifically, advanced internet use explains about a quarter of the difference in wage growth between those counties and the average county in the u.s. and we see little evidee of growth of internet use outside of urban areas. we also, one thing i didn't spend too much time talking about, is relative little evidence that advanced internet is associated with growth in either employment or establishment. so our results are isolated, or concentrated in t wage. so with that, thanks very much. >> thanks, chris. as a fellow economist i make this next comment with all due

respect, but we know on the economist to people who have real of walker. >> thank you very much, scott. a pleasure to be here and i would first like to thank the panel for competing in his important work to. i am robidoux. i'm president and ceo for the joint center for political and economic studies which is a public policy research institute that for the last four years has spent time focusing on issuesf concern to african-americans and people of color. now historic mission has been to develop research and policy

initiatives aimed at helping our fij. in fact, broadband deployment axis and uses all important to us at the joint center that we recently created a media and technology institute to focus on th and other relat issues. national, broadband has become a vital part of american life. it impacts how we live, how we learn and how we earned. so it's increasingly an important factor in determining ether or not someone will be successful in life at all. but yet only a third of american households no broadband. and they have dial-up or they have no internet connection at all.

on my first slide, gives one example of why that matters your kid is a well-known 2007 brookings institution report projected that for every 1% increase in broadband penetration industry, employment will rise by point you to .3 percent a year, it and increase of 300,000 jobs. another study says that a mere 7% increase in broadband access has tremendous economic impact. 2.4 million jobs per year. and as you can see on the sly, billions of dollars in iraq economic benefits. super, rock band means jobs. in communities new jobs. on the next line here, here are some results from a study performed in california two years ago by sacramento state university. it makes a direct link between broadband growth and the growth of economic indicators. new business ventures, new jobs and payroll growth. most notable is the funny thing

increased broadband use contributed about2000 of the 281 net new jobs created in california in 2005. that is about one fifth of those jobs. i look at these results like this and i can't help but think what broadband deployment could do for now what broadband deprived communities. and these communities tend to be communities of color, whose residents face tremendous barriers to employment. in some cases they do not have the basic skills to be competitive. in some cases theirhildren go to substandard schools. in these communities also tend to be socially isolated from the mainstream. you see the numbers before you. they are higher, the joblessness among african americans, bassett joblessness among black teens. let me focus on the fourth part on the slighter traffic and americans remain an all time low in broadband adoption. i really see aonnection here.

when you have a tenured in which access and a culture of broadband use is not supported, then you can see why there are some economic problems that persist. but i also see a way out of this. and it can begin with this national broadband plan on economic growth, on job creation, on privatenvestment. all solely lacking in many of our communies of color. in broadband i believe can provide a breakthrough in our communities. and educrat, the sec's plan, i want you to think what can you do to give these communities a fighting chance to survive and recover. and we at the joint center stand ready to help you and we actually are working now to gater and analyze needed data and other information that can be of help in determining exactly how broadband deployment can bring economic and social progress to areas in a country where the progress of any kind is just a dream. if we want to be able to help

you develop evidentiary record which are policy makers can craft that can help these communities move forward to a brighter day. so let me conclude with some specific recommendations that you see on the slide in front of you. first, we feel that the plans should call for innovative broadband infrastructure and revitalization plans of urban and rural communities. repurchasing empowerment and enterprise of initiatives require broadband infrastructure to be integrated into municipal and community plans. and providing incentives for broadband deployment through other community development programs such as tax increment financing and industrial revolution bond for nonprofit. secondly, yo should call for tax incentives to spur broadband deployment by ivate sector and to migrate new business venture to some of those low income communies. when you have broadband in

distress community, they can can become homes and other businesses that require a broad connection. phonelines, and workers. and on the final slide, you ought to focus as well on raisg awareness and access to broadband for de- skilled and underemployed. in other words, let's bring broadband to these communities and and help local residents get on line and begin to benefit from their access to the rest of the world. it begins with teaching how to us e-mail, how to get information from the web, and how to use important applications that can change their lives, on line job application for us is. and finally an important, as we seek to broadband to underserved committees, it is very important that we support minity owned businesses. minority businesses represent a tremendous opportunity for us to bring economic progress to communities, particularly to

their participation in broadband deployment and operations. these businesses tend to hire minority workers thus creating a positive effect for the local economy. and today more than ever we need to understand how to leverage broadband as an economic development also. broadband can be a key to whether communities live or die, and they can deliver hope to communities where opportunity is really fleeting. and to make this happen, we need a. we need ideas. we need a spirit of collaboration and a positive framework to achieve these goals. and we have the joint similar look forward to working with the sec and other to bring all of this tether. thank you very much. >> our final speaker is tom wheeler who is currently managing director of core capital partners. he has been working in telecommunications issues, policy for nearly 30 years. most recently he led the obama transmission technology science in the arctic. that an entrepreneur, and

pray much every aspect and communications industry that i know of. tom, please go ahead. >> thank you. it is a privilege to be here and to be with this augusta panel. in case scott had skipped in his introduction that i may venture capitalist, i am the guy without the tie. but i've been asked today to address the question of whether or not broadband has an impact on the decision-making, on the investment decision-making of venture capital. and the answer is most assuredly yes. it is particularly true for a firm like ours, core capital partners, because what we invest in our i.t.-based companies. internet protocol-based companies. and it is just simple that the better the distribution, the

greater the opportunity in ip for the development of new companies with new ideas. i think it is intuitive that this affects other areas of venture capital such as biotech and other such things as wl. but because the ability to move data is integral to innovation, broadband ip means growth and opportunity because it is forever creating new ideas, new opportunities because of its nature as an iterative and compounding technology. what do i mean by that? ip is iterative and thatt

spawns additional ideas, additional vision, additional companies that improve on refine what the status quo is. is compounding because every time something is built, it creates the opportunity for something else to be built on top of it. and so we invest in ip because we believe that ip is the growth engine for technology, for the technology economy. and we also believe that nothing that ip has ever touched has avoided being transformed by that event. i.t. is more than delivering zeros and ones.

it is abou delivering data in a format that can be used for other purposes. and companies leveraging the interactive and compounding ture of ip need to have the ability to move those apps around. period. sure, a lot of innovations take place and can be contained in a data center, but they will have a broader economic impact from the broader application of the ideas as distributed by a broadband network. but i think the is a bigger answer to the question that has been posed here today. and that is that connections have consequences. and that throughout history,

network links have defined economics, a becau they defined economics they define the way people live. in a broader scope, we are as we connec and broadband ip is reshaping the patterns and traditions of the last network revolution. and therefore changing the economics that we exist in today, and therefore changing the way we live. the first high speed network was the railroad. it was the original death of distance. since the beginning of time, up until the railroad, animal strength and smina determined the ability to communicate. the history shock parser has a

quot i love wriggles the radio road, the complete is changing human existence since the nematic tribes became too grosgrain and raise cattle. it created the scope and scale economies. this network created the scope and scale economies that defined the 19th and 20th century. and that are the basis of the things that broadband ip is taking us out of now. it destroyed the distributed self-sufficiency, self-sufficiency economy. and created a centralized economy, with masses amateurs being delivered for mass production and then shipped out to a mass market. and define our urban geography as a result. it also shaped telecom, because the telegraph all the railroads, the telephone call that ended even stole their terms or switches, trunks. told our railroad terms.

but why am i talking about history at a forum that is supposed to be talking about what the future is? let me tell you a story. chicago is called the second city, as you all know. why is it the second city? in the beginning of the 19th century, the second city in americ in the west, access to the west was saint louis. saint louis was located on the western side of the mississippi river. the rail lines to the east coast market were located on the eastern side of the mississippi river. the city fathers of saint louis refused to build a real road bridge across the mississippi, so that the network of the day could connect with the source

with the market. the city fathers of chicago, at exactly the same time, illegally built a railroad to connect with a new line coming out from the east. and beit 1861, there were a hundred 60 trains and out a day in chicago and saint lou was arguing about whether they should build a bridg distributed broadband ip is the greatest change to how we connect since steam on steel. you think is a economic growth? i say look at history. look at the history of in the last network revolution that we're talking about the network revolution that will build tomorrow. but i think one of the other lessons of history is that build it and they will come. exists only in iowa cornfield on the silver screen.

th in the chicago story, for instance, the reason why they could build that connection wa there was dand to wed the western range production with the east coast consumption. there was demand for the networkã delivering data at t-1 speeds in 1985. we recall the home computer netuork. and steve at the same point i've had a business down the straight called quantum computing where he was delivering at very slow speeds. and he said we used to really worry about you. and i said, we get to look down our noses at you.

bakersfield were doing at t-1 anyou are doing up there at a few thousand baud. and he said now look where we are. the point of the matter is that steve case was able to build to a demand. i was running a company that was trying to create a technology to drive the demand, and that i'v got the bloody ars to prove that demand is more important than supply. last suggestion. the poster child of the economic stimulus was the cash for clunkers program. it created demand. why not a box for broadband program that creates demand. and a pulse on something that talking about here here i don't think it is necessary to appropriate funds, t we can

use public policy to create demand for broadband electronic medical records. there is billions in his famous for that. let's stipulate that they have to be tied in to broadba. education and applications of federal funds need to stay plate theyeed to be tied into broadband. ralph had the idea that enterprise zones need to stipulate that they are tied in to broadband. intelligent transportation systems need to be tied into broadband and a mandatory way. public safety needs to be told that they must utilize private broadband networks. green and smart grid initiatives need to have broadband tie-ins before they get funding. the point of the matter is, we can create through ublic policy and additional take an existing funding mechanism that demand that will produce greater returns on a broadband future than just simply subsidizing the

building up of the new capacity. so let me close with one last one. broadband ip is taking america back to the dispersed economic activity that was destroyed by the centralizing force of the last network revolution, the railroad. broadband ip is remorselessly slinging activity to the edge of the network, and at that edge e individuals and entrepreneurs. the kind of people that we invest in. in the centralized economy, innovation happened in places like bell labs. massive places where you did and innovative activities. indeed decentralized broadband

ip interconnected economy, innovation takes place with two guys and a dog in a garage. those are the kind of people that venture capitalists like us invest in. those are the kind of people who take that money, who turned around and hire others who spend that money at the grocery store to pay their mortgage, and to send their kids to college. so if we go back to the topic i was asked to addss, does broadband availability influce investment decisions, the answer is you bet. but the story is even bigger than that. that history's greatest changes have been driven by network changes. and that we are now at another hinge moment in new network development, and that opportunity, venture capitalist

will invest in. >> if you have questions, write them down. and if you are watching on line, there is a way to submit questions or. please do. let me sort of work backwards a little bit. start with tom. and i really like you bringin history into this issue. i've also written on history but not as much as you have. and you can find sort of lots of similar debates that we have today historically with the telegraph, and even the optical legraph before that and with telephones, their interconnection and enter carrier debates back in 1900. with your studies of networks over history, do you see particular policy lessons, things that government did back then that either helped or hindered development of new networks and what we can learn from it? >> it is a very interesting question to this dreaded know

about chicago and saint louis is the reason that saint louis didn't build bridges at the local politics was controlled by the water men who were ferrying things back across the river, and they didn't want the competition of the bridge. i don't think anything has changed in the politics of networks since that time. what is interesting though is that this agency, the sec, which has had a very important history but a history that has been basically one of refereeing among various economic interest where the public benefit, as with this initiative the opportunity to become an economic growth agency. and to say that there are policies that we can initiate that will stimulate innovation

and investment. and the only point i am making is that, as we saw on one of the charts, there is billions of dollars for venture citalists out there that is ready to follow that kind of encouragement of innovation and investment from policy decisions. >> if anybody else on the panel wants to just jump in,nd especially jonathan, if you have questions, please jump in. ral@h, also building on what both you and tom said about demand, one thing that you didn't mention in your discussion was sort of direct subsidies to users of broadband, which often, when we look at these, you see that one of the main reasons of people who don't have broadband, who won it, they

say they can either afford or don't have a computer, which those are relevant to divide issues, is do you think sort of, does that direct subsidies is less effective than sort of enterprise zones that you talk about or do they address different issues rex. >> i think that is a good point that you raise. i dohink that the direct subsidies would be helpful in the process that a lot of times you hear people say they don't have this because of financial conditions associated with such. i think we have used an approach where we do all of the above, if we can, including direct. i'm glad youaise that issue and i should've raised it earlier. >> this sort of to the economist, it seems that kind of putting it all together to find that broadband has an important

but kind of indirect maybe economic effect because it is related to so many other things, innovative, and its innovative ecosystem. and given that, how do you then connect your comments to particular policies that the sec or any other part of the matter might consider as a way to not just affect broadband but what they can do that can help ensure that broadband has some positive economic effect, or maybe it is the case that policies at this point in the broadband aren't necessarily focusing on the economic outcome but just for some other goal. >> thanks, scott. the bottom line is because of the nature, the indirect nature of the benefit to broadband employment, which were

described, which i and tom described earlier, keeping -- if broadband is easy to get, if it is cheap and widely deployed, that is of course good. however, we also know that the lions share of the benefits are going to be concentrated in particular areas. so that's the first thing and in the second point i would like to make is that if we can make sure that broadband, the types of traffic are not regulated in some sort of systematic way so that we can have unfettered experimentation on how broadband is used, that would be good, with the eeption, perhaps, of peer-to-peer filesharing. which takes such a large chunk of broadband traffic, it might actually inhibit other sorts of experiences you. >> so you think most broadband use then is not particularly

related to productivity or economic effects? >> well, no. i would not say that. in the sense that if there are huge number of startups and other organizations, income and building out services for broadband is creating something. >> so that is the demand-side? >> gets. >> if i can mention one thing. i think one of the direct policy implications that i have learned looking to the literature in seeing what we know and wha don't get, is that the policy has to be very careful as to what it takes as its measure of success. for example, we don't want to pick on education anyway today, but if you look at wiring schools, progress has been made in that area. but the measure of success cannot be number of schools

wired. it has to be what are they doing with it, how is it impacting, what gets done in the classroom, is it being used? so it takes an extra step, i tink, beyond what many policies like to go in terms of measuring their success because it is easy to measure something like numbers of schools wired. is much harder, takes much more post-grant monitoring or whatever to fire out actually what the real effects are. i mean, that is one practical application that i leaed when you have something collocated like broadband where you can't just give it to someone and then it does its thing. you know, with the subsidies it might be more than subsidies. it might be giving the computer to the household, giving the broadband connection, giving the training, something that goes as far beyond an agency like the sec has done in the past. >> i will confine my remarks to business investment, kind of the area i spoke about earlier.

i think a lot of our findings are consistent with some of the things that james talked about earlier in terms of one potential explanation for the result that the impact of advanced internet use is greater in the use of higher education, high income, high population regions are some of the reasons that we heard about elier. so the importance of local skills, third party market, or outsourcing and technical and programming services, you know, education, organizational change. all of these things which are easier to do in some sense in some areas, in urban areas, than others. so in some sense at least on the business side, it makes it that much more difficult to, you know, dryly faced a connection between rabin and investment potential in wages or economic growth.

>> i have a general question to pose to the panel. and that is that as professor krieger pointed out there have been a number of different ways that's, the sort of effects of broadband been attempted to be measured and he identified some of t potential limitations. could i ask sort of an open-ended question about what you do as some of the benefit that may not have been captured by the studies today, what might be done, and how important these overlooked benefits are? because part of the purpose of these workshops is to try to get as much information as possible about the sort of potential benefits of deploying broadband,

and if we concluded@@@@ capture more fully the social benefits of broadband. >> well, i will take a first stab at this very difficult question. we can't measure what we can't measure. and that is one of the reasons why it took so long for the impact of icp to show up in the activities is that first researchers in the area had to learn what it means to measure something that can be as i.t. and ict actually is. so strides have been made in that area, but when you have taste let me give onexample. you asked the first order qution about what y we be in

missing. so for example, productivity would impact of ict first showed up as in the knowledge producing ict producing sector itself. but that is where it is hard to measure the output of a knowledge producing term that might be less tangible. where the output of the firm is intellectual property, something like that, is much harder to measure themhen they produce a widget that you can see, feel, touch. and put a price on it. so yes, i think we probably are still missing a lot how we measure it. i don't have any great suggestions there, but i mean, the good point of what you can take from that whatever the impact are that we can measure we can certainly scale that up by some unknown factor because impact has to be greater than just what we can measure. >> i guess as i said in my remarks that broadband impact is a way that we learn, live and

earn. and i believe it also determines whether or not some is going to be successful in life. so i could not sit here and imagine, you know, a neighborhood or a state without broadband. i would not want to be in that state when i compare myself to others who have the benefit of broadband. sof you just sit back and imagine what your life would be like if you were in an area that did not have broadband. i think that he had to to your question would become fairly obvious, that broadband is extremelymportant to whether or not one igoing to be successful in life. >> as the other qualitative as opposed to quantitative guy, first of all i think we've got some issues with data lags. okay? we talk about latency of data

and zeros and ones. there is latency of data that we can measure as wl. secondly is -- i hope that this process doesn't lose sight of being a pro active encouragement of growth, not just a retrospective measurement of growth. and when you stop and think that what i at? it's 60% of all new american jobs, or some number like this, come from small business. the kind of folks that, again, we invest in. none of the companies we invest in could make it on dial-up. period. full stop. and we need to be providing the platform, but we also need to be encouraging the demand that

calls for that platform. >> in preparing for the stock, i looked around and try to find what people are actually doing on the web. and just some sort of standardized data of how people are using this technology, it is delivered via broadband or dial-up, and itas very difficult to find anything. the best you can find it you can see which websi there was traffic. but we do not know -- you can take up a lot of samaras. i now beg i now beg on my so therefore i don't have to go to the bank. and thatrees up times for other activities such as watching youtube videos which is of course highly productive. but there is certainly a trade off between maybe the internet provides us more leisure time.

but we have no idea as far as i can tell wt those things are. and i think that really follows up on james' comment. we want to know if we're going to prode -- if broadband is to the house o if broadband gets to school, how is it being used, because without that we are really not going to be able to answer these questions. >> just two points. and this is going to follow-up with some of the other speaker have said as well. so certainly one challenge has certainly been that of data. so if you look at where we will often see the impact of broadband, the the impact is going to come from business. and the data that we have on i.t. investment and business right now is pretty scarce actually. we end up using a private survey which we believe in some of the best data on i.t. investment available, simply because firm

level or regional investment in i.t. and in particular internet investment simply is not out there. so it makes it very difficult to quantify the impact of broadband because there just aren't the data out there. and i think that is hindering a lot of, you, a lot of issues in trying to understand the policy here. the second thing is, i mean, most of, and this will follow-up on some of what james said as well, a lot of t, this is a big question about what other ares could we look at to understand. i'm just going to pick on one. the majority of what's been looked at in terms of business investment of i.t. or any kind of i.t. capital, predominately these kind of labor productivity studies that look at, you know, outlook depleted by labor inputs, or some similar measure. and we know very, very little about the impact on innovation or other measures of economic

activity rather than just the one that, you, the one that everyone looks at which tends to be productivity which is what we have data on. so that would be the other thing that i would mention. >> okay. jonathan, do you want to do a question? >> one question, if i mai. the range studies reported on here or referred to here spanned some that look, residential broadband penetration and some that looked at business broadband penetration. and i guess my question is, a plea for some help about how we should go about combining those indicators as we conduct our policy analysis and try and figure out the overall impact, and sort of the one specifics of question of that is there any intuition to suggest or what is

the intuition that might suggest that an increase in residential broadband penetration might have some affect on labor productivity or on gdp, beyond just sort of the end user experience. >> i will make a couple of remarks on a. so actually, in our work we actually combined one of the controls that we had was for our aggressions of the impact of advance internet uswe took the data on current population survey data on residential internet use, and use at him in particular some ofhe data on use at work. and you know, although that seemed to have some effect, it wasn't, you know, the effects weren't as strong as that on kind of direct broadband or

direct advance internet investment. there was one other -- and if you sort of look at correlations between the cbs sort of individual measures of investment and the measures that we use at the firm level, you know, there is a correlation, but it is in perfect in some sense. unfortunately, you know, i think that survey is not being refreshed every year so our data, even at the residential level, the individual level, on internet use is somewhat imperfect so again we have kind of an issue associated with findin you, another issue associated with not having data. >> could i ask a follow-up question based on your comment, and jim's earlier?

which is that several of you pointed to the lack of data that would be necessary to do a more precise quantification of the impact and benefits of broadband. and so the question i pose to you is, can you identify and sort of give specific suggtions about the kind of data that would be useful? because it could be something that we could include as part of our broadband plan. so i will give you an opportunity here to make some suggestions. i also give you an opportunity to think about it, and then provide those suggestions to us at a later time. if anyone has an answer now. >> i think as an economist i think what we are interested in is the identification strategy to help uncover where the gates are coming for. and we usually don't get that because we had to rely on natural experiments to help tease out correlation and

causation. and so i think what i would do just is that part of these policies really try to minimize the trials and sort of systematically and randomly pick winners and losers. we talked about earlier today. and say let's roll out gradually, and that weight we can invite who is gaining and what are the causes of tse games. >> the two things that i would mention, one is just to reiterate one of the points i try to make during my talk is that certainly more could be done at the federal agency senses and data collection effort. so for example, again, the comparis to europe, they are doing much more productivity. is a bit of a shame that anyone needs to go and probably a thousands of dollars for some proprietary data where the quality is unknown. and why can't we provide funding to the senses so they can do for mobile surveys to find out what firms are doing with their ict and t broadband, how they're using it and so forth.

so it is needed eight an easy place to start or a hard place to start with you and get interest in funding it. the other thing i would mention is just going back to, you know, as the studies are done, you know, we don't -- we can already lost the btle with getting a top to randomize to getting money to places in way that apprimate a lab experiment there are still stated they are metrics that we can use. for example, one quick example, you can look at firms that just barely missed the cut off, whatever the cutoff is going to be to getting a grant. those firms that just missed getting the money should be very similar a priori to firms that were just over the line. so in a sense they are silar in other ways, but that one got the funny and one didn't. so there's your control roup and treasure expended for. you can do analyses of these and we have techniques for dealing with the sort of data problems.

what is going to take realistically is probably a lot partnering with people outside of federal agencies to tap on that. that expertise for academia. >> so to part, we cld even build onome of the surveys are out there. census did a 2000 survey on business i.t. use athe micro level data, at the michael. so at the firm lev that hasn't in general been refreshed over time. so information on that kind of data would be very useful. the current population surveys, computer and internet survey hasn't been refreshed every year. and that has been a very useful source of data for folks that were studying early on, kind of the uses of the internet and impact of the internet at the individual level. and that suvey hac not been unfortunately hasn't been refreshed over time. so those things are two things that have already been done out there that they would be very

useful to continue. actually, it's interesting that researchers that are looking out for level or regional investment in i.t. almost ways have to turn to private surveys at this point because the only official government statistics that are publicly, or even privately available are at the industry level, for the most part. so these are things that have already been done in the past that if they could be done again in the future would shed a lot more light on some of these issues. >> okay. so we will start with questions from the audience. this first one actually built into some of these data issues because it's about enterprise customers. so the question is, the increased availability of broadband is a huge impact on the so-called enterprise customers and non-ict industries which is banking, airline reservations, ticketing, business process outsourcing et the competition has failed to develop for broadband services resulting in supercompetitive

prices which ran customers from apturing the potential of@@rrrt >> what do with know about broadband services available and those prices? >> so in terms of broadband services, i mean, that's not -- yeah, i mean, james, you would know --o push the ball back at least as to how the concentration of broadband providers are differingcross regions. that's not something i know as much. in terms of broadband services available beyond, you know, sort of prices, i haven't see the

most recent data other than, you know, the sort of traditional statistics that people have shown that obviously it's more concentrated in highly urban areas. i haven't seen the most -- the most recent data. >> i'm not even sure if there is -- to what extent there are systemic data on enterprise prices for broadband. i mean, we all know that e fcc hasn't collected such data in theast so it's not at the federal data collection level. again, there probably are private sources out there. to be honest i don't think i've ever seen them used in a study. most pricing stues have dealt with mass market services, dsl, mode, and prices are collected by researchers by, you know, having their graduate students hit websites in different locations. so it hasn't been rocket

science. i would say there's more that we don't know than what we do know about price there is. >> do you think that's an issue that business enterprise prices are something that should be looked at as well as all the other data issues? >> it's hard that the margin is federal intervention is most need. if i can thinkf the competitive market or markets where the private provision is probably working pretty well, you would expect it would be those high enterprise prices. >> in so many of those situations, you're actually talking about vpns that are then turning around and being sold as a broadband service track your credit cards or when you swipe a credit card at a store and something like that and how in the world do you get to that data? that pricing data? >> yeah, i mean, just to make one other point to follow up on.

to the extent in our study a lot of the action has been in urban areas and in urban areas competition has been quite robust. i don't know what the pricing data exactly are. but in general if you look at sort of metropolitan areas, competition among broadband provers -- we don't know the pricing data but we at least know the number of providers across regions and that seems to be quite robust and i would agree with some of the things that james had mentioned, that that's probably not the margin that matters within urban areas. i think some of these other things in terms of skills, third-party resources available, ouourcing providers, these things are probably going to matter more in the margin than pricing, at least within urban areas. >> let me put two questions together here that i think are related. and the first is whether anybody has studied the effects of telework. jobs will not itially be created in unserved and

underserved areas. they'll be brought in from other areas. we call this telework. and then the second question is, what mechanisms exist or could be developed to track and address the relationship between economic growth, employment, and technical skills in education -- technical skills, education, and training to the social and economic stability of historically neglected communities? so what do we know about the effects of telework and how would we go about sort of measuring those effects? what would people need as a prerequisite to mak that work especially in the communities? >> well, i did run across a few studies when i was doing some earlier research on ebusiness and how it's used. there's actually -- there are very few formal studies done on telework itself. mainly because the -- well, again, if you don't have data,

you can't study it. the data are hard to come by. even with survey data it's hard to tease out the impact on a particular worker of allowing that work to work at home because, of course, again companies d't randomly assign the option to do telework and so forth so there's compounding factors. so i think i only ran across, you know, two studies that i say made a serious attempt at this and one found it had no effect and one found it had a positive effect. so i'd say we know very little about that. but i mean, you can certainly imagine that it could have impacts in many what's probably many of them nonquantifiable and probably many of them not necessarily a benefit to the firm but to the worker as well. >> let's break that second question out a little bit more and ask how it could in general aside fro telework -- how we should track and address the relationship between economic growth, employment and technical skills, education and training

to the social and economic stability of historically neghected communities as the questioner said. ralph, do you want to address that the question. >> how do you have the technical skills, training to the soccer economical capabilities? >> so i think one -- so i agree that i don't think there have been a -- a large number of studies on telework. my understanding is that the information that's out there suggests that most of the telework that's going on is not people telecommuting in from some distance away from a city and doing all of their work -- it's not a substitute -- a complete substitute for work in a place of business, at least right now. most of the telework, at least the studies that i've seen that have been going on, seem to

suggest that it's a complement to working at a place of business. people are two two days of week at work and three days at home. it's important to be clear that, you know, how telework is being used right now. in terms of the second question, wow, that's a -- there's a lot of meat there. you know, i think -- you know, i think i agree that the questions on causality are pretty daunting but even beyond that, i don't think there's been simply a lot of surveys about where -- you know, where people are doing -- you know, who's doing telework, how much are they spending? time at work versus at home? i think most of the information that we have is out there.

so again there's a lot of, you know, coming back to the data issues, there's a lot more that we could -- we could know before we even go forward. >> can i try an off the wall thing? i'm sittingere and i'm saying to myself, you know, if somebody came to me with an idea that married telework with crowd-sourcing as a variation on outsourcing of my work, of work, i would think that would be a really interesting business idea. but i would stipulate that it requires broadband connectivity. and so -- again, back -- i think what we're playing with here is we're playing with how do we establish demand that drives into the market this kind of

connectivity so that there will be residual activities like telework meets crowd-sourcing. that nobody even dreams of today? but would have -- i mean, i know of examples in the developing world where there is telework being -- there's an outfit called tx text, i believe, where they use owd-sourcing concepts on mobile phones in the bush in africa to do work for back in a central city. but it requires this kind of connectivity. and i think you can take connectivity to the kind of enterprise areas that ralph was talking about and those kinds of things result. >> so just kind of related to that, i guess, i would be surprised given the information

that we had that simply providing broadband to underserved communities would do anything of high value. if it was not coupled with a whole bunch of other programs that have made broadband high value in other comunities such as improved education, impved training for social skills, a wide variety of things -- so if all we did would provide broadband to underserved communities, it would probably not provide many benefits at all. >> but i think the broadband would open up additional opportunities, whether that is education and other things that you get through broadband by not having broadband, you wouldn't have access to those types of things. >> but the evidence does not support that. >> we have to do a study. >> the studies that we've heard from today -- not mine, i will

point how the >> right. >> but the benefits in terms of wages have come to communities that are highly educated. >> so there is a variation on this theme? the point that i was trying to make is that you can't force demand is supply. first you got to have demand. and a national broadband policy needs to worry about how am i going to create demand? and when i put demand into that impacted area for this purpose, lo and behold, guess what happens? people start hanging things and other things that you never anticipate happen but it has to start with that demand. >> but point is, where there is broadband in rural communities there seems to be little effect. that's the statistical comparon in these studs. it is insufficient to simply provide broadband. we must also provide education and otherctivities which may be beyond what the fcc does,

right? but without that, we will provide broadband which will not really be used. >> if i can jump in here as well, i think the reason for this is that most of the low hanging fruit comes with something dial-up access to email and the very basic services on the internet. the huge gains from are already available. if there's going to be this huge effect, we probably would have seen it already with dial-up which i think goes especially for consumer surveys. their time online or in e middle of this last decade, they didn't increase their use of the internet drastically once they got broadband which sort of goes to evidence that it's not a transformative technology over and above what dial-up has already provided. it's a better experience at the same time at the same price. and everybody would like broadband but is there going to be diminishing gains as we contin to roll out broadba service? >> more broadly, there's a lot of -- so -- i mean, at least in our study one of the take-aways there's a lot of complementary other stuff that you need to see

wa gains. so certainly some of those are associated with lower costs, associated with cities, labor markets, education, things of that natur also so those -- all that collection of things and predominantly the things we've been talking about sort of lower the cost of not just broadband investment but the things that businesses need to do to use broadband effectively. so, obviously, it's not just building a broadband connection. it's, you know, creating ecommerce and doing all the logistics and all those other things that are needed to create a business model out of broadband. and all of those things are easier to do than some of the areas that are already doing well. the other side, one neglected thought is that oftentimes -- we usually think of broadband or networks as being complements to face-to-face communication but

there's a lot of evidence to suggest and things -- a lot of things people need to at least meet once or a number of times in addition to kind of the -- you know, the telecom or the ict-enabled communication and those things again are easier to do in locations that are highly conglomerated and have all these other things. so at least from our work we see that one of the challenges of getting benefits out of, you know, in our case advanced internet investment you need some of these complementary things that are available in particular locations. >> how do we -- how do we think about these -- the incremental returns. ryan pointed out that we always wanted to measure the economic effect. you want to know -- you want to measure the improvement over what it replaced. but broadband isn't an either/or. there are lots of flavors of

broadband. and some peopleare will faster speeds and some people care about lower latency and less jitter. yoknow, what are the various increments that matter? and, you know, how people value different types of broadband? >> i think that's a good point. we sort of have been talking about broadband here. and there's varying types of broadband of speeds and prices. we can look back to the survey conducted in a 2004 paper. they put a price on it. consumers were willing to pay $26 per month on broadband and dial-up. it's always on and more reliable and faster speeds i think the willingness to pay is how as economists we really kind of measure the gains that are going to accrue for something and they're revealing by their choices of what they're having as their service. this is how they prefer broadband over dial-up. but we still haven't seen a

mass -- there's been a mass migration but dial-up is still pervasive for many communities. so i think -- if it were drastically greater, the numbers would jump off the charts and everybody would drop dial-up straight-away and we didn't see that in the data. they're willing to pay more for broadband but not so much more that it's transformative, a completely more technology. >> i'll push back a little bit on what you just said. since 2004, there have been a number of new applications that have been made available over broadband that would not be made available over dial-up. there's file-sharing. there's streaming video. there's online banking, online government. one might think that this may have increased the -- a, the

value of broadband so the people who would not take dial-up would find a useful to take broadband and, two, a 2004 survey that considered what applications were available to broadband then but weren't available for a dial-up probably might not be -- might underestimate the value in 2009 where there's so much more available. well, your response or any of the other panels? >> well, i think you're absolutely right. it's hard to imagine youtube being a compelling technology over dial-up. it's not going to be very useful for consumers. at the samtime, the beauty of theethodology we laid out which builds on the nobel prize-winning work we're not properly attributing these gains you're going to youtube more and block about ussi less and

watching tv less and they are maybe decreasing, overall, gdp because a television studio is not going to invest as much to their programming. so we don't take a stab at trying to measure those but i think it's important to consider what we're giving up as technology progresses. so it's not just simply saying we like youtube a lot so there's a huge economic value. it's what's the value above and beyond what would have occurred without broadband. >> what i was suggesting was that the data you used based in 2004, how do consumers value broadband over dial-up may be no longer relevant. and i'm not sort of disputing -- >> you're absolutely right. you need to get a survey to continue this methodology. my point is for overall economic gains they will be upsetting because the consumers value more while they're revealing they're

not going to buy a movie from blockbuster so it's upsetting at this point. >> so i think the big ben at least to conmers right now is video. that's what you're getting with broadband. i would argue banking you can do over dial-up without much trouble. i can research my medical concerns over dial-up. i can do my email over dial-up. so the inferior technology works on the web with the exception of video. what is the value of internet video, we don't know. >> i think we fall into a trap if we say -- if we assume that economic growth and consumer use are synonymous. i really don't think that we're talking about universal youtube.

we need to enable the productivity in the engines that will hire people and allow them to go to the grocery store. we have multiple companies that are virtual companies. ctos out here on the west coast, the ceos on the west coast, you know, the marketing guy on the east coast. we've got to have broadband technology. >> they do, don't they? >> they do. they make their life decisions around that and have to make corporate decisions around that and there is a limitation. i think that there is -- there is -- i'm not disputing -- and i stipulated at the outset, first you create demand, okay, and

that -- that will cause the investment to go out there. for new broadband. but we need to look at it as a lot more than consumer applications. >> i am in complete agreement with that statement. my question would be then, what evidence do we have that business -- businesses are not being served sufficiently well by broadband? >> i'm telling you that the kind of iterative and compounding ip that i invest in has to have broadband and that we are de facto-making decisions as to where economic investment is going to be made because you can only place them in certain areas. >> and you're leaving off certain people in certain neighborhoods and certain talent because they don't have broadband technology. >> but again, i'm not -- we're

looking at the wrong thing, okay? w're looking at the pipe. we got to be looking at the reason for the pipe. and we need to be saying what are we doing as federal policy to incentivize people like us and others to want it off invest in building that pipe to the demand? and we don't - we don't look at it that way. >> jonathan, you wanted to -- >> i jus wanted to sort partially re-ask the question i asked before. you know, mbe to tom. if we wanted to measure what you're talking about, is this business or residential or both or neither? >> well, what i'm talking about is business. i think that the -- we've seen the spurt in economic growth

from consumer applications of broadband. i don't mean they're going to disappear. but i think that the great compounding activities are in the enterprise space. and that we have to enable those compounding space. we want have the data that's happening in the space other than the data that i point to. >> just to follow up on that. i agree completely that if you're going to see an impact on measurable economic turns from internet investment, you know, that's going to come predominantly from the business sector and to follow up on the original question about measuring different dimensions of broadband, well, to come at that at a different way, we need to know more about measuring the different applications of broadband. i mean, there's -- i mean, we're not talking about plugging in a pipe to a business. there's a lot of adaptation that

is businesses need to do to me these -- to make these broadband effective and that's likely to be quite different depending on whether this is a collaborative technology for new innovation or enabling supply chain or logistics and all those things and the sort of questions that we're asking about the impacts on the local economy and how that varies across locations are likely to vary quite significantly across these applications. >> let me ask more questions from the audience which will actually further this discussion so people are itching for a fight so we can continue this. could chris and ralph talk about the impact of a broadband deployment on employment? also, there we studi that broadband availability has not had a substantial effect on wages and productivity for low-incomed or education populations. everett suggests that broadband availability would benefit all

populations. are these used in conflict? if so can they be reconciled. does the answer depend on the long versus the short and the third question asks whether ryan's study or how they take into account innovation. so why do you all disagree? [laughter] >> well, i was citing some existing studies that we looked at sacramento state university where it showed that there was of a direct link between economic growth and the indicators in terms of new jobs and payroll growth. so those were studies that i'm citing. i'm sure there's studies all over. one thing that's been clear from this discussion, there's a lot more data that we need to collect and understand in this area so there will be studies that differ but that's what i was citing when i said that. >> yeah, i don't want to start any fights here. >> particularly, you're sitting

right next to me. >> that's right. that's right. that's right. [laughter] >> he's a big guy. >> that's right. that's right. maybe i should inch over here. yeah, i mean, it's an extraordinarily difficult question. i think james alluded to this in the very first talk that kind of disentangling the -- you know, supply versus demand in some sense -- there's been a lot of studies where there have been differencesn local supplier is associated with, you know, broadband providers are associated wh local -- you know, local employment or wage gains, and i think we -- you know, we need to be -- you know, we need to be a bit -- a bit careful because there are very tricky issues about, well, you know, there could be -- you know, what's different about locations that have lots of broadband providers? and in our study, too, you know,

we tried to, you know, address -- address this in a careful way and i think that's -- that's something that we need to think about. we need to lk at very carefully. you know, in terms of short versus long run effects, i'll say one thing. in our work, you know, so we were looking at a period to be clear now a different sample period between '95 and '00. i think more work needs to be done on most recent data, at least in our own -- in our own study we tried to see whether internet investment in 2000 was correlated with future wage gains. so this gets at the short versus long runs and i didn't talk about it in my remarks. what we seem to find was that there was -- the short run

increase in wages associated with internet and the difference between what we called the high factors versus others but there were not additional benefits at least associated with 2000 investment as you go between 2000 and 2005. so -- i mean, i want to be very careful in saying this that this is looking at the long run effects of the 2000 investment on future data. i think there's a lot of work to be done here that everyone on the panel has mentioned about looking at either different margins of investment or future - you know, future data than, you know, what we have and what other folks have dmne to try to this out, this picture out a little bit more. so i think there's a lot of additional work that needs to be done here. >> and for the pern who was looking for the fight, i think listening to chris we probably can get together on this and get some new data because he's talking about data between 1995 and 2000, just think how fast things have changed over the

last nine years so people -- people are using it differently and everhing else. so we can get together on this. >> that's right. >> this is the third time i'm saying the same thing. it appears just from the slide that the studies that ralph were referring to was referring to actually looke at residential internet penetration and the data that chris was using is based on business. so it's at least possible that they are reflecting different mechanisms or different phenomenon, but we don't know. >> we do have to wrap up and a very quick clarifying question for ryan. you talked a lot about these offset that people when they do one thing and they're not spending money on another. do you have -- is there any data on what sorts of things have been crowded out by broadband activity or by internet? y broadband activity? >> we have the numbers on dial up. that is immediately in there. we have to do a more systematic

consumer survey and see how they're spending their time on line. a chip to amazon is different from a trip to an offline retailer. we don't have systematic numbers on that. there will be studies like that, we just haven't incorporated them into our analyses. it is something to consider. any comment before we finish? if not, i want to thank all the panelists for joining us, those who came out of town on their own expense, very grateful that you did. it was an interesting discussion. i learned a lot from it. thank yo very much. will turn it over jane

to moderate and get your insights. we are grateful for your participation and for those of you on line, there are folks throughout this institution watching us. we have had pple participating from the far corners of the globe as well in a number of these workshops. primarily the goal is to benefit from your insights and establish a public record about the ways in which broadband can address challenges that we face in job-training and access to job placement as well. so thank you. this session is part of something that in the strategic plan we are calling national

purposes, congress specifically asked us to address 15 policy priorities and think about the ways in which broadband could improve those priorities, and job-training and work-force development is a very critical one of tm. we are looking at issues related to education more broadly, healthcare, public safety, economic opportunity, generally speaking, government operation, things related to improve the efficiency and civic participation a several other areas. this is extremely important as a first step, we're looking forward to all your insights, it is pleasure to introduce release:at the end the table, director of adoption on the broadband team. thank you for being here.

>> thank you for being here. >> we actually have a lot of participants who are logging in. people who are watching us on broadcast, if people want to submit questions and participate in the workshop, you can go to twitter.com/s p c dot and you can also use bb w k shp. during our workshop today, we are going to focus on the potential impact of increased broadband access to job training and job placement. how can broadband bring about innovation and technology and new ways to approach job placement? what role should the government play in shaping broadband where we can have on line

job-training. these are the questns that frame this workshop. the purpose of this workshop is to develop this open dialogue with the public and establish public record on broadband's potential impact on job training and job placement. we are actively seeking comments from everyone. this is the initial phase of our research of the national broadband plan. i am so pleased to introduce our panelists today who have traveled here and rescheduled vacations who have come from the airport to participate. thank you so much. we have representatives from the department of labor, communications workers, the work force alliance, precede the learning, monster and blackboard, they're all leaders in their respective industries, we are happy to be here with you. each of our panelis will present their presentation, about ten minutes long and after

everyone has had a chance to present, we will open it up to questions for the audience on twitter. and webx as well. heather is director of innovative training and work force development at rutgers university center for women at work as well as director of the center on innovative training and work force development. we are grateful to have heather he travels to d c to speak at this panel. >> thank you for having me here, i am pleased to talk about this. i am the director of the sloan center and innovative training and work force development which is at the state of new jsey. at the center for women at work, we really have been dedicated to assisting state, county and city government departments and workforce investment board's

institutionalized online learning alternatives for non college-educated workers. our work has shown a research has shown a viable solution to the barriers that exist for adult learners in accessing traditional classroom based education training. we believe it is a cost-effective method to train the millions of low-skilled americans who need training in order to ride the ladder on the socio-economic scale and tilt self-sufficient jobs. delivering training by computer and internet has been successfully utilized throughout the united states and incorporating high speed broadband programs as improve the flow of learning and enhance the variety and breadth of learning that is available on-line. it is also affordable and flexible and helps to democratize access to training and education for those who otherwise might not be able to get it. to day i will talk about three

topics. i will detail the barriers that low skilled individuals face. y traditional venue and i can establish address those barriers. i'm going to provide innovative training programs for low skilled adults in the united states and the access in the united states to successful delivery of this online training. there's a lot of agreement. training. it's clear that education and skills training has a positive fect on people's earnings and ability to reach self-sufficiency and have an income to support their families.

>> elderly and children and family members stand in their way of getting this training and try into traditional classroom is limited because it's not flexible. you have to be in a classroom at a certain time and if you a child care may not be available and things like that. and still work and maybe waitressing hours which may fluctuate. they may have hours in the morning or the evening. if they have online course work they could do on any time or day and not interrupt their course work and training. so really many of these individuals who need education and language -- ladder for available educational oppounities that cod really

help to improve their economic status. online learning offers a solution to these barriers. it successfully alleviates the problems that exist as i talked about such as family demands, geographic demands, racial and ethnic differences. financing and transportation and inequities. the utilization of online learning is most effective when it allows for flexibility and it recognizes the various roles that adult learners play in their lives. it really needs to fit within the lives of adult learners. many adult learners may be students, workers, caregivers and we need to work training around them instead of asking training to fit training around their busy lives. delivering online course work is not a new concept. universities across the country have successfully employed online learning for decades. sloan c has done a great jobn promoting online learning for universities and it has really become pervasive across the united states. more recently this concept has been adopted in the work force system and believe it has a

place in the work force system. this initiative to put online learning on the work force system begins with a grant of the department of labor women' bureau to the state of new jersey to pilot a program in 2001 to deliver online skills training to single working poor mothers in the state. participants in this pilot received a laptop, a printer and internet access for a year and rutgers university under the direction of eileen applebaum studied this pilot 92 women completed the program, 15 women went on to college programs and a year out of the program the women experienced an annual average wage increase of 14%. the success of this pilot program demonstrated that distance learning works for low wage workers. and also that for this population online learning provides significant advantages

that aren't available in traditional classroom-based education. in addition to providing benefits to the single mothers themselves, there were also familial benefits that were shown from this study. children got skills in computers and the digital divide was really being bridged in these famili. since then, online learning has really been used as a work force development tool in a lot of you states. there are about 21 states currently who are using this in some way. and it's continued with different populations besides the working poor including native americans, rural americans, those who have been incarcerated, displaced homemakers, domestic abuse victims. ma people may question online learning may be as effective as classroom learning and you may have read the "new york times" report that talks about the international study that showed online learning on average students on online programs

performed better than students in classroom-based learning. there's other innovations ithe program. the center for women of work write work have developed building skills for work. this is a website that will be available in the fall. and it utilizes the internet and contextual-based learning to provide a very interesting literacy -- work force literacy programming. it will be available at no cast to learners and is out there for the work force development and the general literacy community. its purpose is really to equip out of school adults and youth with work readiness skills they need to prepare them to be successful in today's high skilled economy. it demonstrates a high production value, a really deep understanding of how adults learn and it's designed to engage adult learners without a teacher or a tutor. this can be used for anyone at any time. and the skills that are taught are based on the national work force readiness credential and the equip for the future standards and they include academic and interpersonal

skills. so programs like this demonstrate how online learning can be shaped to really serve the needs of a variety of adult learners and can be utilized in creative ways to promote effective learning. broadband is really essential to online education. without broadband, online education certainly suffers. research shows and a lot of my research shows that one of the major challenges to delivering successful technology-based education is the speed of internet access. high speed broadband access is really essential to the effective delivery of online skills, training and education. yet, many americans still do not have high speed acss. and it's not available to them in their communities. studies have shown learners who have access to high speed internet can more easily navigate their course work, can finish course work faster and are more likely to finish. they don't to have connect the internet. they don't have dial-up problems. their courses don't fall down and they can also get a wider breadth of course work. there's nor available to them if

they have high speed internet. high speed internet cannot only offer bter course work but it can also offer more interactive course work through voice, data and video-sharing. it can facilitate a really successful online learning experience and can train people -- can really improve the competitiveness of the united states economy by training the people who are working in the united states. as you know right now, the united states currently ranks 15th among 30 nations in the information technology and innovation foundation broadband rankings. other countries including china, the netherlands, japan and singapore all outpace the united states in broadband access and speed. and really broadband policies are needed to ensure that broadband access is universal, high quality, and importantly affordable. this agenda will benefit low-incomed individuals and improve the availability and quality of training and education available to tm. in conclusion, i'd le to say that using online learning to deliver education and skills training is a viable option

within our nation's work force development and education systems. utilization of the internet and personal computer and the delivery of such programs is interesting to the work force development systems specifically because of the ways the technology can promote flexibility and access to education and job training programs for low-incomed individuals. this is especially important for the many low skilled americans who need to improve their literacy skills to start to support themselves and get to self-sufficiency. the internet is convenient, flexible, and high quality. and if it's offered with broadband, it can deliver really wonderful training that can be available to all americans at a low cost. as educational programs continue to be developed and technology continues to be enhanced, the flexibility offered by online training will help to democratize access to training and edation for adult learners and helpo raise low skilled workers out of entry level jobs and career pathways for sustainable self-sufficiency earnings. thanks.

>> thank you so much, heather, for sharing your experience and pilot work force development programs for low skilled labor. our next panelist is from the u.s. department of labor sir richard horn. he serves as the senior policy analyst for the -- i'm sorry, he serves as the supervisory search analyst for the office of disability employment policy. and he is here after having to rearrange his vacation so thank you, richard. >> thank you. it's a pleasure to be here. yes, i am with the u.s. department of labor's offe on disability employment policy, which was -- it's a new office within the department of labor. we'd only been around for about six years and so i can actually tell you -- i created a federal agency within a large department and it's quite a chore. i apprecie everything that you said but i think that when we're thinking about this particular topic, accessibility matters.

itatters tremendously. individual learning styles matter. they matter tremendously. and for people with disabilities, the internet is a blessing and a curse. i have two blind employees who i supervise. we do not have one piece of software at the department of like that that is accessible this they can use. they can't even complete their own time sheets or their own travel forms because the software is not useable by screen readers. online course work does a lotf video. and if the video isn't captioned, then people who are deaf or hard of hearing may not be able to take advantage of it. if the flow of the content doesn't adjust for people's cognitive disabilities from mental retardation on, to learning disabilities, to dyslexia, we're going to miss a whole population of folks who cannot take advantage of it. and it's usually the last thing thought about.

so when you mentioned universal design, i have a concept of use -- universial and everybody needs to take advantage of that. i find vendors think about this last and within the federal government we do a lot of procurement and we don't pay attention to the law that says that procurement must be accessible according to the 508 standards of the rehabilitation act. everything from our -- including our online course work. it's easier to create it up front andt's cheaper to create it up front than it is to retrofit it on the back end. particularly, again, for course work that uses a lot of video links may link to inaccessible websites that are not 508 compliant and translate materials from a lot of other virtual kind of networks.

we have created a few online training mechanisms through research and grants that we've done at the office of disability and employment policy and one of the ones that we took on very earl thinking aut broadband, was telework. and at the designed a program and we targeted folks who were on either federal or state workers' comp programs or interestingly, returning service members. we found that one of the advantag for this particular subgroup of people with disabilities is that the broadband and the telework provided a bridge for return to work. and that's another brilliance i think of some of this online training, it not only improve work skills but it can also be the bridge in coming back into the work force and for many people with disabilities who are -- who have either been inred on the job or returning from service overseas, this is a very critical and important strategy. but again, what we found with

our initiatives was that part of the trouble again was the accessibility of the internet and the internet providers don't -- don't really -- don't really think about it. i think some of the other challenges that we face -- and i'm sure everybody faces it. what has with a lot of the down time? you know, the comcast connection goes out or -- something happens and the course gets interrupted. i think the social networking and the group learning that needs to be addressed thoroughly with online courses. many people with learning disabilities tend to learn better in groups because there are people here who complement whether it's a visual perception or dyslexi and it should be

universal -- universally designed. it should be done up front and not retrofitted but we are really challenged in not only getting is out to the work force development system, which we bug a lot. it's something i enjoy doi is saying ye but. but then working with the colleges and the universities to understand this and to make that connection between the content that they're delivering through online training and who they're audiences are. so with that, i will put my plug in and thank you all and i'll turn it back over to you. >> thank you so much, richard, for telling us about the challenges that disability citizens face especially in the line learning world. hopefully, we'll be able to find some solutions in the future. our next panelist is from the work force alliance. it's a national coalition of community-based organizatis. community colleges, unions,

business leaders and local officials advocating for public policies that invest in the skills of american workers. mr. kermit is the senior policy analyst for the work force alliance. kermit? >> okay. great. thank you very much for inviting us. we're very excited about this opportunity to come speak here today about how broadband creates opportunities i believe it for low and middle-skilled workers but also some of the limitations we see with online learning and i just kind of want to flag those in advance. so as jane mentioned we are national coalition of businesses, community-based organizations, community colleges and other education training providers advocating for federal policies and state policies that advance the skills of the american work force. i think there's a broad agreement that, you know, as has been mentioned that education and training is a key to economic compitiveness. it's key to expanding equity in this country. and it's something that we focus very carefully on. what we particularly focus on

are the needs of folks that are often excluded from the policy conversations around education and training, so low and middle-skilled working adults that tend to be beyond the reach of the k-12 system. they don't necessarily connect with the traditional post-secondary education system in a way that policy is described so we really try to advocate for policies that help those folks get access to education and training. an so it's exciting to be talking about online education. it's exciting to be talking about, you know, technologies and learning technogies that can help these individuals because i do think that they face unique barriers and that there are some advantages to online learning. so i just want -- just a couple of quick facts about -- or just a couple of little things that i know about online learning or things that are o interest. i think it's clear that online learning is here to stay. i think 10, 15 years ago there was some question about -- you know, you had one camp that said this is going to replace classroom-based training and there's a camp who says there's no use for this and it's a bunch

of junk. it's a lot of correspondence classes on computers. we know there's been adoption in the private sector and the american society for training and development and the state of industry report for 2008 indicated that about a third of -- a third of prite sector learning is taking place as elearning nowadays. there's a report from the sloan consortium that found3.9 million college students are taking one online course which is up from 2002. so more than double and i think you're starting to see federal policies moving to accept online learning a little bit more. back in 2006, the higher education reconciliation act had a repeal of what was called the 50% rule which placed lot of restrictions on online learning for institutions of higher education and their ability to access title 4 financial assistance. and you're also seeing the president back in july announced

his community college initiative, a major new initiative to expand -- to improve how community colleges serve americans. part of that is $500 million investment and it's also in the house. there's now legislation called the student aid and fiscal responsibility act that include $500 million over 10 years for the development of online education i high school and post-secondary courses free online education. we think that's fantastic. that's wonderful. it's a wonderful initiative and i think it shows how far online learning has come in the last 10 to 15 years. the advantages of online learning, i'm sure other people are going to talk abo this as well. i mean, obviously, we know that it works; otherwise, the private sector and the higher education sector -- we know that it works at some things very well; otherwise, the private sector or the higher education sector wouldn't be adopting to the degree that they are. it's, obviously, a very effective method of information transfer and as we get more sophisticated technology, more sophisticated models like

simulations and instructional lessons and handheld devices where you can fix something right there, you know, there's a lot of things about online learning that we know are effective. particularly, for low and middle-skilled workers, i think what's of -- what's of great value is this increased access to education and training. three-quarters of today's college students are classified -- have at least one -- what we would call nontraditional factor. so they're working adults, they have dependents. they're financially independent. they are only going to school part time, for those individuals online learning, i think, is a real boon because if you have to deal, as heather was talking about, if you're dealing with kids, if you have to work full time and you can only go at night, the flexibility that comes from online learning, the lower costs, the ability to self-pace, the removal of geographic limitations, the fact that you don't have to be sitting in a classroom with teacher in order to get education, i think that's very

positive and so we would supportees investments that would be made to expand access of training and learning for working adults particularl low and middle-skilled working adults. that having been said i think there are some limitations with online learning. just as a model. we know, for example, it's not necessarily good at replacing some hands-on training in education that has to happen. you know, a lot of the jobs we were talking about if creating federal investments, in infrastructure, and green jobs, a lot of those are jobs that really do have a lot of hands-on experience. while on him learning is certainly gog to be a component -- it can and suld be a component how you prepare people for those jobs, you can't necessarily do everything through online learning. we need to be sensitive to the fact that online learning is going to have to be combined with on-the-job training and probably with some traditional classroom training just to make sure that people are learning and that they're -- and that they're able to do the job.

obviously, online learning is like any other kind of learning. if it's contextualized to actual work experience, it's a lot more effective. if people can connect with what they're learning in the classroom or learning in a laptop to the job that they're going to do, that's always going to be more effective. and i think there's also -- just in general i think there's still a little bit -- still not much clarity on what kind of credentials come out of online learning and whether or not those are being adopted by the -- by the business community. any kind of training in order to be really effective, it needs to be leaning toward a credential or a degree or a certificate that has value in the labor market or has academic value. it's not clear yet how well the business community is adopting -- certainly they're adopting it when they do -- when they provide it internally but it's not clear how well it's being valued externally by institutions of higher institution and bit business community. so that's my first half of my spiel. kind of my main thrust of my

presentation -- i'll go this as quickly as i can, i want to kind of stress that access is only a part of the problem. that we're going to be facing. i want to highlight two quick statistics. the national commission on adult literacy released a report last year called the reach higher america. and one of the very terrifying atistics that was included in that report was that 93 million americans lack the literacy skills to enter post-secondary education and job training. when you consider how many of the jobs i today's economy and in tomorrow's economy are going to require post-secondary education, thas terrifying statistic. that's the equivalent of 60% of today's work force. michigan did a report just back in december and they found one-third of the state's working age adults, 1.7 million people lacked the basic skills to attain afamily-sustaining job and to contribute to the economy. so what's the point of this? you can provide access to everyone but if peopl don't have the supportive services in literacy that they need to take advantage of online learning

it's really not going to be of great deal of value. so as we're moving forward, we need to be thinking about how we link online learning and traditional learning to the kinds of supportive services and remedial services that are so critical to the success of low and middle-skilled workers. and so there's a range of services that we know are necessary that need to go with this and, you know, obviously, this is not something you can guys canecessarily address with the broadband policy but it is something to kind of keep in mind. we know that -- for people with very significant detachment from the labor market and the significant barriers to employment -- one service that we need is recruitment and outreach. it's great to have online training available but you need to have -- you need to have the ability to reach out into these underserved communities, rural communities and high poverty communities and actually bring people to the training if they aren't aware of it and if they don't know how to use it, it's not going to be as effective as you want it to be. assessment programs. we need to be able to address people's skill levels to

determine what kind of training they need so they can move into the jobs and careers that they want. .. i know for example that a lot of states have adopted the work key system that acp has. that's one examp of where i think jan on line program that is working within the public workforce system to help people sort of assess their skill levels and help decide what training is necessary. but you need to have those services alongside on my drink and we also need services to promote persistence and completion and support of systems. as heather mentioned run childcare and transportation to kind of a point on that, you know, on line training does reduce a lot of geographic barriers and it does reduce some does reduce a lot of barriers. but it doesn't reduce them all. in order to do online training you still need a computer and you need a chair to sit in. or you need a laptop. that means the online training has to take place somewhere.

that is something you need to be thinking about. it you build it, the question is whether or not they will come, where are they going to go? a lot of the folks we're talking about, low and middle skilled workers don't have laptops or personal computer at home. we need to be thinking about where online training will take place. a couple of areas are obvious suspects, there's a plic work force investment system, community colleges are another area where you could be doing online training. a couple points on that, i hate to sound negative but the work force investment system and community college system are substantially overwhelmed at this point. work force investment system, work force investment act, you need total month period ending in march 2009, served 39,000 people up from the year before by twelve million people, a substantial increase. this comes at a time when we had

eight to ten years of budget cuts and staff cuts. there's not as much capacity in the system as there was two or three years ago. same with community colleges, they're facing state budget crises, substantially increased enrollments. you are seeing community colleges thinking about limiting admission. something to keep in mind, people need to be able to access online training. need to think about where their access and online training, coupling expansion to expanded access to computers and facilities, also need to be thinking about career counseling. tell someone to look at a set of job listings or take an assessment test, you need to be able to help them to connect that to what training they need, what skills they need, what jobs are out there, if there aren't people who can show you how to use a computer, lot of folks who lack basic literacy don't like

digital, they will need help accessing online learning. i want to talk about connectivity. we have a very disconnected work force system in this country. we have federal job training, administered by the department -- adult basic agitation under title 2, different funding streams, different local agencies so that when you look at adult education and job-training in this country, the enrollment rate between adult education, when you think of the number of people who lack basic literacy is pretty daunting. you need to think about how we expand access to online training and supportive services, how can broadband bridge the gaps between these systems and

services to access these services. i as a lower middl school worker. we need to be thinking about whether on-line training is connected to business needs within the community. is wonderful to get online training, not as effective as lower middle school workers. one innovation being carried out on the state level to carry out business involvement, industry or sector partnerships when connected to an industry, multiple employers, labor groups, community based organizations, i suggest that is one innovation in terms of work force development that might help to determi where the best on-line models available, the best ways to integrate online

learning into local and regional industry development. i think that is it. >> thank you so much. our next panelist is mr. christopher etesse, vice president of receive the unlearning, a technology company that designed and implemented education management systems for higher educationnstitutis. >> thank you for having me today. if we can go to slide iii, my background is interesting, i was one of the early employees of black fla. spent some time that monster government solutions, another panelist. in the on-line education worl pretty much since netscape's early browsers, saw the growth of black board and other learning provider's, the phenomenal adoption by colleges and universities and for profits over the last 10 to 15 years.

proceed diem is a service delivery platform for education. we got our start about six years ago supporting on-line learners around the i.t. side, we support 87 i.t. applications. we have 800 employees in southeastern kentucky, that is up from 60 employees three years ago. we are the fourth largest employer in pulaski county and continue to bring jobs to that region that was hard hit by the current economic environment. we answer questions related to i.t. enrollment, financial aid, we have a number of clients that will call into our personal and ask about their financial aid package, asked for transcripts,

find out where they mail a check in. we have 800 clients we are supporting across the united states, everything from high irritation, a community college, profit, k-12, continuing education programs. we have a conlting organization that helps deploy our services across the organization's, really help maximize customer service f these learners as heather and credit -- kermit kaleba mentioned, they have child care responsibilities and they want to get on-line and learn as quickly as possible. we offer a number of technology solutions that assist us in doing that. one of the challenges we see across the edution, next slide, is the seasonality and arrival patterns, when our folks answer the phone, chat or e-mail to help these on-line learners. 50% of our volume is in january, august and september each year

as folks are going back to school. during the week, 50% of our volume is on mondays, tuesday, and sundays, especially sundays continues to increase but during the day, 50% of our volume occurs between 2:00 p.m. and midnight. what we are seeing as we're talking to folks that are continuing their education that may be putting their kids to bed and logging on at 10:00 or 11:00 at night, we provide a service that if they're having trouble logging on or understanding, they can call us and get a live operator 24/7, 365 days a year. what is most important about that and some of u may have seen the front page of usa today's money section yesterday, looking at the broadband speeds across the united states, if you look at the western states, they maxed out around 2 megabits per second which is 1 tenth of the

average speed in korea, for example. the learner's we are dealing with need to be able to get on, complete their activity, get off and continue with their lives. not just access to broadband is important but high-speed broadband consistently throughout all of the communities in the uned states. i would like to go through some examples. next slide, please. some clients, some potential clients, western governor's university was formed by the 19 state governors, it is all on line, they offer, as one of their programs, teacher accreditation in 49 states. if you are a public school teacher and you need to be accredited, you need to do so every two to five years, one of the department of education mandate is. you can atteld the program, $6,000 a year for the program versus $20,000 for some

traditional programs and it is competency based learning. if you learned something in the classroom they don't force you to retake that credit, you just have to prove through testing online that you have learned that. teachers are non-traditional students, they have different hours, different responsibilities, many of you are parents as well. world, high speed broadband at home is keyor maintaining their jobs and educating tomorrow's leaders as well. another example of large for profit k-12 institution runs charter schools. next large. route the 50 states. the student stays at home, they are logging on online to take their course work, they received district credit for that diploma, there are expansion capabilities for that business and force students who have that need, whether it is that type of

learning, or there may be a disability involved and they can't attend school. i don't think we want to limit today's learners and future leaders to what i would classify as 1980s style because of the location. we have another for profit institution that is actually -- does tutoring to low-income, and need students in the key metropolitan areas throughout the country for the lt three to five years, they have all been dial up, they parted with a large provider and are rolling out wireless cards which is allowing their students to complete these tutoring sessions sometimes three fought times faster, getting the educational content they're looking for, getting on line, doing what you need and continuing with your life. next slide please. as a number of you have mentioned, as it relates to you,

continuing education, community colleges, we are seeing that seasonality, that peak usage, monthly, daily and hourly. as kermit kaleba said, campus mission for on campus community colleges seem to be flat to slightly declining but community colleg, there online programs are increasing quite rapidly. those are the students that need the broadband, doesn't matter where they live, they need to be educated and we need to be able to provide that to them. we have another client who offers transcribing, encoding for the medical profession. 90% of their students's mothers stay at home, they're doing that program at night on line and the need access to high-speed bandwidth. next slide? emergency preparedness, swine flu, natural disasters, these students be able to access

support personnel, to be able to continue to learn on line in the event of an emergency when the library is not accessible, it is broadband for the students, adequate broadband for them. next slide, please, as an educational provider we need to have dual redundant role broadband. we are in a very rural area in southeastern kentucky. we have police lines that come in on one carrier, internet that comes in on a second carrier and a redundant third carrier for internet. as we go through thi it is important to think about that dual redundancy, we can bring world broadband, get it out to all of these locations across the country but when they become dependent on it and there learning is dependent on it and it goes down, what do they do? let's not offer something that could go away or may not be

stable. my final thoughts, next slide, please, it is a math problem, it comes down to doesn't have adequate broadband, 2 megabit or above, how we achieve the 90% penetration with existing technology such as 4 gee, etc.. and avoid the misconception that we have to dig up the entire country to achieve the basic broadband infrastructure that our students of today and tomorrow are dependent on. thank you very much. >> after t panelists presentation, we want to ask you about redundancy and have you elaborate on that. our next panelists is monster

worldwide, mr. eric winegardner, vice president of client adoption. we all know that monster is an on-line employment solution for job-seekers and employers. >> it is exciting to join this dialogue. it ia passion point. i look forward to the question and answer. i applaud you for doing a conversation, facilitating the conversation about broadband over the internet. i will address this to most of you who are watching us at this point. the context of our conversation today is really a around job-training, how people find jobs today and how they find jobs tomorrow. the idea that i'm going to do something meaningful with this job training which is get a job, how is that going to happen, what i am going to talk about today is hopefully with ubiquitous access to broadband, you will be of the c tools and the private sector that will help you figure out where you

should be doing job training, what you can do with your skills to day and what would you really like to do and dare we say, love doing. those other kinds of things that i think access to affordable, reliable access to broadband, the possibilities are limitless. our business, it is easy to take for granted that everyone has in home high speed access like i would imagine the panelists here. in this exercise, in this dialogue, it is alarming how many people doot have internet access, let alone broadband access. because companies like mine buil intricate applications that require fast processing of data, billions of data points to provide meaningful experience that you, that you do something with. this individual empowerment is not happening if you don't have

something as simple as broadband access. so i think to frame this, there is an assumption that we should be able to make reliably, that knowledge is powerful. we heard reference several times here, information is free and at our fingertips. education takes many forms, nontraditional, in classroom, on line, the digital divide his real. one of the assumptions i would like to look at is that broadband access = opportunity and growth. for for the context in my presentation, to make sure people don't see this as a monster commercial, we are not the only player in this space. that is what is exciting about ubiquitous access, there will be more competition, and competition leads to improvement. but i also want to make sure people understand there are many players in the online career space. i'm representing reference tools

and technology that we employ, things that we believe to our core and innovate around but it is also important to know the we were the 454 commercial internet site so we have been around for a long time. when you think of the access, in the last 15 years, we have a meaningful presence in 60 countries around the sole purpose of online career management. this is our singular focus, it is what we are passionate about, we believe that a great job = a great life. when we are in tough economic times, you see unemployment rate like they are. if i don't have a meaningful job, that has a trickle-down effect, that is important for us to leave on the table to discuss here. there are twenty-four million american adults that use the largest job boards in 2008, that shows that these are unique. this is only counting them once.

they used one of us, seventeen million, eleven.eight% of adults use monster to search for jobs at least once per month. there are over 5.2 million job openings advertise across all major on-line job boards, they may be duplicates, 2.2 billion of those postings are in august. th concept that there are no jobs out there is false. there are jobs. is finding them, being able to compete for them and stand out, if you have broadband access you know you can get those jobs. if you don't, you are further added disadvantage because you don't even know where to look. monster obviously knows where the jobs are, we track the report monthly by theonster employment inde it comes out every thursday, the first thursday of every month. i didn't want to kill us with statistics in this early conversation. the data is deep and broad and

we can go into it with many conversations. i think the most effective use of the time today is to open a dialogue around how widespread access to broadband internet allows for innovation around career exploration and management tools which are available today, the beauty of these tools e they are effective and they are free to job-seekers, they're free to anyone who is looking to better themselves. i want people to understand, their own sites, there's competition around those. i want to make sure that is what we are talking about. if we go to the first slide. for me, what i will talk more about is from an individual's perspective, effective access to broadband access, allowing an

individual, learn and compare, navigate, who am i, what skills to i have, what do i want to be when i grow up. i might ask myself that today, by retiring nevada may ask that when he grows up. what opportunities are out there and how do they stack up side by side. once i know all of that and completed my job training, how i find the opportunities that are available and compete to get them. what i have seen already around social me and the other cool technologies, those of us who take broadband for granted are looking at community and the sense of how broad and connected we are andow we help each other. this is pretty powerful when people who are looking for self improvement can help other people who are doing the same thing. i don't want to lose sight of the fact that where there is individual improvement at the alexis round jobs, this drives down the cost of candidate acquisition and employment costs for employers. when we look at small,

medium-sized business, the way they can hire a lower-cost, this is the icing on the cake. next slide, please. the first thing around this, exploring and navigating, focus on three tool that exist on my site that are free to job-seekers, that are built around this tremendous da that we have as an organization, eighty million resumes in our database, each of those resumes represent a career path of an individual. when you throw those things together it is quite compelling to figure out, these are real career paths of real people. how do we leverage that? we have tools that are available today that allow person to map their own career. where am i today? where do i want to be, how do i get here, how to lie get there? if you go to the next slide, this is looking through the real resumes of real people. a lot of this, there are 2600

occupational profile retract at monster. i could name the mall. i don't know that you could. all of these things match up together. for me to lk at what opportunities are there, it could be simpler as the interface where people quick and explore. this is one treatment where you could figure out where do i desire to be or where am i? how do i get there, how do i go from here? it can be as simple as someone who says i'm a forklift operator today. what did other people who were forklift operators do? this person went into this area, this person went over here? the was the interesting group that went and did something else. that give you, in my opinion, the hope that you can too. along the way, you are discovering jobs and careers and fields you know nothing about. it is not just about mapping and discovery. if you go to the next slide, it

is about understanding how to learn about new jobs and compare them to something not want to do. if i am in a fieldnd don't know what else is next, career snapshots helps people understand what do those 2600 operational profiles mean? the piece that is most valid is what to do to get there. when you look at the snapshots, go to the next slide, this helps you understand, what is the textbook definition of this job, but there are hundreds of thousands or millions of people who would do that job today, let's see what they say. it brings the social media components of let me share my experience with you. it can be other people who are forklift operators or auditors who are trying to convince you to do it or not to. the idea that that exchange of information can be very meaningful for you. it helps understand what is the projection of this career over the next decade, how many jobs are there now? what do those jobs pay?

what training do you need in order to get their? going back to that concept that information should be at my fingertips and it should be free. knowing what i need to do is something that is pretty powerful with these tools. from a learning and comparing the concept of the reality eck, this is something we really want to be able to say from a career benchmark standpoint, the population that has the skill sets that you need or the desires you have, where does this career stack up with your expiration's? and understanding ui high income personnel and this is a dream for you to do these things, the average sala takes stock, or the cost of my education, i am going to be in a loss situation. however we look at these things, what is the quality of life, the different areas that are here, these tools are simply not

possible without high speed internet access. i would imagine as has been referenced, over dial up, it would be a very short exploration. this is something that is incredibly important for people. if you look at these tools and put this on the front end of job-training, this is someone who has done that, self guided diligence of what they're interested in so they can say these other training programs i am interested in. that is something that all of us are receptive to. give me the tools to help myself, help me tell me, is what i think high-speed accessn my house is going to be able to do, less reliance on the career coach concept. you want that, but where is the scale that every single person that doesn't have internet access would need some sort of career coach? let me empower me to be my own?

at this point, outside of learning about what is there and comparing, in today's environment i have to compete so it is not just a matter of i have all the skills, so do other people. how do i stand out from the crowd? we have been doing this for years, helping you get the job of your dreams by not making mistakes others made or preparing yourself. one thing i want to walk through, in the future, how all this should work, job-seekers, where do i want to do it? if there is access to employers and job-seekers to be able to populate this information, that exercise should be very simple. if i do a job search, in any major metropolitan area i'm going to have more jobs than i know what to do with, or figure out how that happens. the concept is i don't see where this one is, probably boston,

there will be hundreds if not thousands of jobs in every category, administrative assistant, sales rep, analysts, all these things that are happening. when you look at the percentage of job-seekers in oral verses urban areas that have monster profiles, billings, montana, 11% of the workforce have a monster.com job profile. contrast that with boston, where 29.7%, not only is it a much larger area, from a number standpoint, the percentage is overt three times, times that of a rural area. you have to ask yourself why. from a quick job search standpoint, there are also jobs in those rural areas. i put a map on a wall, we wanted

to say test ourselves, where do we go, we came up with kentucky. it is a little to the east but it is definitely a rural are if you go to the next slide, when you do a job search, you are going to find four or 500 jobs, many of them in pikesville. what you see year is you don't have the choices or the saturation of jobs in that ariane and you have to say why is that? do employers even have access to do this on line? what i find interesting is that you will find in these aas companies that have large locations in metropolitan areas, reuiting in more rural areas, the same way they are recruiting in metropolitan areas.

i am recruiting out of d.c. a centralized operationq center, putting a job on a job board or my own corporate career site and i say pikesville and i expect you to find it. those who do, or there wouldn't be the widespread adoption we talk about of these organizations, those who do are at a very clear advantage over those who don't have something so simple as the ability to do a search for what they want to do. if there is no broadband access, there'no opportunity. the opportunity is there. if there is no broadband access for me, i don't have opportunity. it is something that merits further exploration. one of the pieces we are most proud of as an organization, there are hundreds of thousands of pages of content a round career advice. in the career advice areas, you

can learn not about how to build your resume, how to tailor that and respond, how to interview, how to connect with people, how to network better, all of those happen together in one online destination that people can spend hos in. they dig in at the same interface where they ask other people. all of these things happen in a way that we talk about the power of our offline networks but how many of us ask those questions to our offline networks? is not appropriate all the time. that are lots of other people in the same situation, it is a very meaningful, and powering exchange of information. i hope, i was in my 10 minutes, i tried really hard. when you look at the people helping people component of that, when you build this infrastructure, it is impossible

to predict all of the value that comes out of this investment. but this alone, job-training, job creation, in my mind, far exceeds the $7 billion investment if you want the sense of a taxpayer. when you look at the employer benefits i mentioned at the end, the audience i am looking for, this is where we talk about the openarketplace, if i am on-line to acquire candidates or build my business, to work remotely or however i am doing that, there's all sorts of benefit. the most expensive opening is the one the goes unfilled. when you look at the cost verses putting an ad on the internet or in your newspaper or putting your help wanted sign or everything else we have, driving down the cost of lost productivity and making it more efficient for employers, is

absolutely there with much more ubiquitous broadband access. in closing, our focus is to provide our users and anyone who is looking for career exploration and destination to manage their careers, not just tactically try to find their next job. in these tough economic times we are in, being able to easily find a job is incredibly important. however, it is important that we take a long-term view on this and understand if i subscribe to great job = great life, these times will pass. we want to make sure we are giving people that opportunity, to explore and find their true calling. th is why the future of the approach we have taken is all

about the job seeker, it is all about the long-term view of your career and by ubiquitous access to broadband is so important for us. that is it. >> thank you so much. it would be so interesting to continue a dialogue followin up on what kermit kaleba was taing about before, career mapping the careers that are available. the technologies that are available to help workers and job seekers analyze the skills they have and map them to the career they are seeking or displaced workers who are outside of the job force who are a seeking retraining and getting back into the workforce. it would be interesting to make that connection, to see if there

are technologies that can bring job training candidates together with career mapping and job placement opportunities. our next panelist is from blackboard, the learning software company, mr. tim hill is the president of professional learning at blackboard. >> there is nothing wrong with a short commercial venture company. the viewers and people in the audience need to know what we do and why we are experts. most of the people on wet backs have logged off and are looking for jobs on your web site. i didn't know there were that many jobs. we get back to our office, jump on monster and check what is open in our field. >> someone else doesour commercial. >> that is true. please jump to the next slide. i will do a quick background on blackboard so you understand our

company and our values and the clients that we have worldwide in education. if you want to learn more, go to blackboard.com, there's plenty of content so i don't have to share it. don't want off and checked the web site until we are done. every day, 5200 instutions, twenty million people use blackboard as an online learning platform. leading universities, community colleges, career colleges, k-12 school systems and adult learners learning on the job, in government, as well as around department of defense, the reason is because our platform is easy to use. we have competitors. what our industry done is revolutionize education so it can be accessible and affordable. the parts that are missing are what we are here to talk about which is how can we get broadband, make it affordable and excess of book, how can we

get content that goes on and on line platform to be constructed so it impacts people, where they work and where they live their lives. jump ahead to slide 5. i am jumping ahead on slides. this gives you an example, people from all walks of life in 65 countries use blackboard as there online content delivery platform. it was billed for teachers, proven by students and proven by millions each and every day. from the war fighter to the admiral or the general to k-12 student to college professor, people using black board each and every day. what those people have in common is accessed through their university, through their organization. they have access to broadband, they have a computer. what i want to talk about in this presentation is what about the rest of us? most of the people on the web backs are either at home using

broadband on their computer or in the library, perhaps at school, but there are others, whether in the 508 c camp, but whether the are unemployed, underskilled, who are just looking for the opportunity to learn more, to be more skilled if they're out of work, to get new skills to get back in the work force. that is where broadband can dramatically impact access to education, access to training, access to certification that can change people's lives on a daily basis. so jump ahead to slide 7. by group is about adult learners. most people in the audience probably use blackboard or one of our competitors. in your undergrad, in your graduate school. a lot of people would love if they have access. that is where broadband can make a difference. without high speed access, the

access to education, training, whether it is a vocational o professional, is very limited. we all know that that is the biggest challenge, the cost of deliveng content on a platform like a blackboard, the cost of building the content for most universities and community colleges is not the bolden's grew. that is not the part that is inaccessible. there are held grants, other government grants, financial aid, to get people the education they need. what is missing is if they don't have the tools to do it online, if it is not convenient for them because of a child issue, or a working mom or somebody who is actively employed and the only to education in the evening, how do you get it to them? that is where on-line can make a big difference. so skill is a big word today because of our unemployment issue. there are jobs available. many of them need some level of pressional experience,

ceification, diploma or degree. a lot of people who need that are those who are out of work from manual labor jobs, factory jobs. there are jobs but if they don't have the skills and the education or certification to get them they are attitudes disadvantage. what comes first, the chicken or the egg? they both have to be there at the same time, have to be affordable and accessible. i will give y some real-life examples, members of the career college association which is headquartered in d.c. as well as the imagine america foundation which is a non-profit arm of the foundation. you will get the scale of what i am talking about, these have been presented by the ceo at different conferences. in the u.s. if you are a heating or air conditioning worker, you are skilled but only on the job, your average salary is $28,000 a

year, probably paid hourly. if you get a certification from a degree or organization, your average income can jump to $54,000, that is pretty dramatic. how do you make that accessible to somebody, whether it is on the job, online or through a school? you have got to give him the opportunity to do it and the lot of these schools are half online, have in person, where it is a blended learning environment. there's a lot of out of work auto technicians, dealers are closed down, factories have closed. there is one company that trained mechanics and auto body workers on line and in person on premium cars and nascar and formula one racing. in downturn in economics those are high end things, luxury

cars, racing cars, their graduates average $100,000 a year. so they get the investment, they understand it and if it is made accessible to them it can dramatical change their life, go to the next slide, please. if we talk about the demographics in the u.s. and what is becoming ubiquitous, hand-held devices, televisions, computers are becoming ubiquitous but not for everyone. those who have access to them usually pick or choose one device over another because of the economics. if there were grants that helped high speed internet going from a $39 to $59 a month down to half of that because you are pursuing a degree, that can make a huge difference in the affordability. lot of people think high-speed internet or cable are only entertainment, we are proving them wrong, talking about educational opportunities and access to education.

i don't think the technology is a barrier to entry, it is available. the content is there, education, certification, it is access because of affordability. that is the key challenge for the fcc as well as providers of the technology of the broadband in the u.s.. if you look at the trend toward the dollar learners, this is an older slide but todayhere's a huge influx of adult learners into the education market place. community colleges might not be able to handle the infx but there are other alternatives. not everybody can go to college, maybe community colleges are heard by budgets so they limit enrollment. you can do an online, there are vo-tech and career colleges that offer excellent educatiol and degree options that you can do it online or a blended learning environment where you have hands on and go to school but this is

growing dramatically because of displaced workers, because of people have to have two incomes to survive. they're looking for those educational outlets and many times they can get the opportunities through government grants to pay for the tuition, they can get to the campus or they can take on-line around their schedule but what they can't afford many times are the equipment and high-speed access to the content which is critical. next slide. two good quotes, one from education dynamics. people are turning to online agitation in record numbers because of the flexibility. those who are working are looking to improve their lot in life, those who have family are taking care of extended families, those who volunteer on the side need to be delivered education in convenient modes based on their lifestyle each and every day. earlier this year, to make

themselves more marketable, 26% of workers planned to go back to school to obtain a degree, certification or other training which is pretty impressive. that is from careerbuilder which has a major office here. let's go to the next slide and ok at the stats from the actionamerica foundation and care college association. this is an alternative. blackboard accounts for 86% of colleges and universities we are also working with a career vo-tech universities and collegess because of their massive growth and the fact they offer access to people who can't go to the traditional four your college. 2700 institutions are growing dramatically. there are a lot who are starting a because ther is demand in non-traditional forms of work like biotech, power, they are starting schools to build workers for the next industry.

2.4 million students attended credited career colleges in 2000, 10% of the market of higher education students in the u.s.. this is a great staff here and one that is important for all of us. six of the ten fastest-growing occupational categories between 2004, and 2014, will require less than four year degree. additional mileage, son, daughter, you have to get that degree and go to graduate school. the truth of the matter is there are jobs out there. it takeskills and some level of education to get there. a lot of jobs that manufacturers are throwing overseas may be jobs that our workers don't want to do, they are manual labor. a lot of the jobs they do have are the skilled labour part, so if you can make an education and that certification available to workers it can dramatically change their lives.

20% enrollment growth, 100% online schools. those schools are providing high-quality education, high quality instruction because most of them, the instruction is given by adjunct professors who teach at colleges, years these and community colleges. the final slide, heatherook my thunder but i put the quote in here because i think it is important for people to see from the new york times, august 20th edition. on average, students in online learning conditions perform better than those receiving face-to-face construction. blackboard is a facilitated platform so we depend on blended learn even though we have a lot of clients doing 100% on line, there are things you have to learn with hands-on and there are alternative learners, hands-on experience, the way they learn this disability. the final quote from the same article, experiences the more

tailored to individual students than possible in the platform, you get a lot of personalization with on-line programming of classroom, we have to serve peop of different backgrounds. >> your presentation, not to pick on kermit kaleba, your statistic that you mentioned in your presentation really highlighted thimportance of digital literacy in this country. ninety-two million americans lack the skills to pursue post secondary education. people who have post secondary. actually enjoy job growth over

the next few years. communication workers of america. >> you offer your own invitation to day. i would agrewith tim that affordability is an issue for workers in online training but we want to remember there are still people in this country that don't even have access to high-speed, which also is a big issue. communication workers of america is a labor union, we represent 700,000 workers in this country. what i am going to talk to you about is on-line programs that our union have embrac and we have worked with for the past ten or so years. cwa, our union has always considered ourselveq and education driven union and we

take great pride in thpath breaking education and training benefits that we have negotiated mostly with larger employers, specifically at&t, verizon and q qwe qwest. our long standing commitment to education and ongoing learning for workers has been strategic, in an effort to help our members maintain job security as well as being able to moved up into higher-paying jobs. in the telecommunications industry which is an industry where most of our members are, there is constant change and constant technological change in order to have any degree of employment security. you really do have to be a lifelong learner at this point and you do have to maintain your

skills. but despite these past breaking education and benefits that we have negotiated with our larger employers, we are still finding large segments of our members are not taking advantage of th. for any number of reasons. also, our smaller employers were not able to negotiate these benefits. members were not able to do ongoing training. ten years ago we decided to embrace online training as another vehicle to reach more of our members and to provide education and training to more of our members and we were particularly interested in -- some people talk about this, in making training available to our members who had difficulty, whether it be because they were women and caring for children, or older parents at home or

whether it was workers who were working late shifts, or whether it was workers we had in rural settings where it would take some 2 hours to drive to the nearest community college. we thought online might provide us with a vehicle to expand the number of our members who were taking advantage of maintaining their skills. i want to talk briefly about the two programs we started ten years ago. they are both a little different. that we give you an overview. the rst is called mactel, a union management industry partnership, designed and delivered on line. members include two unions, cwa and ibew, and at&t, verizon, quest and frontier citizen. the courses are developed with extensive industry and union input.

what is important about that is the courses are relevant and up-to-date which in the telecom industry is a little bit of a challenge. our education partner for this program is pace university, and they have been exceptional, providing outstanding, top-quality curriculum instructors, and students services. i can talk more about this later, i would say for online training to be successf, there are additional contacts that are required if you are going to have the completion re is that you want, many more contracts than the traditional classroom requires. nact nacteloffers a bachelor's degree in applied information technology. quick statistics, since 2007, 2500 students have participated. we had 2 handed graduate degrees, students from all 50

states, we have a 95% course completion rate, which if you know about online course completion rates, is really off the charts, we are very proud of that. 40% of our students are women. the average age is 38. we have on average 300 students enrolled curse semester. so that is nactel. the other online learning program is cwa and that the academ the union sponsored and run -- does offer an associate's degree to recognize industry certification. the majority of our members who come to cwa net come for three reasons, to get the industry recognize the edification which

will either lead to advancement for them or just provide job security for them to stay in the jobs they have now. a second reason they come is to acquire a necessary skill set, some urgent need that has arisen because of new technology or because of trends where they need skills that they don't have. that might be one or two courses. the third motivator that we find among our members for coming is a need to obtain an understanding, a knowledge of the technology, which will make uncomfortable in the work they're doing and will help them, the kinds of courses include fiber-optic, a plus, net plus and this is the curriculum and the series of that curriculum. statistics for this program, 50%

are women, 40% are minorities. these are our members. we were particularly interesed in targeting members who were not as represented in the other programs. our students come from all across the country, the avera age very similar, 38. we have 600 enrollment's the year. our course completion rate is 80%, very high for online, and our certification rate, students who actually get the certification pass the test because the certification tests are third parties. we don't do that ourselves or completion rate would be higher. certification rate is 30%. curriculum contact and delivery has evolved in both of these programs over the last ten years. what has been interesting and what i thought about as i was preparing for this panel

discuson, is how broadband deployment and the fact put more people have higher speed internet, has >> reporter: the way we deliver some of these courses. although it is ssible to do most of these courses with dialogue, most of them start in dial up and realize they can't do it. so they either purchase higher speed internet a a n drop out, very frustrating, or manage to do it in libraries or at work if they get permission for that. ponte when we first started ten years ago it was not unusual at all to have on line workers have dial up services.

we had to adjust for that. one example was, i had forgotten this before i came to talk about this, when we first started ten years ago, we would do video for these courses so instructors would be demonstrating how to use a tool or perform the task and he would see the instructor doing it, walking through it. we would male video cassettes to students with the books and cassettes. i had forgotten about that. we have to send a dvd for a student, they do not have the video for streaming video but we