{"id":229582,"date":"2019-05-07T05:33:59","date_gmt":"2019-05-07T12:33:59","guid":{"rendered":"https:\/\/www.esri.com\/about\/newsroom\/?post_type=wherenext&#038;p=229582"},"modified":"2024-05-10T06:39:48","modified_gmt":"2024-05-10T13:39:48","slug":"bridging-digital-divide","status":"publish","type":"wherenext","link":"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/bridging-digital-divide","title":{"rendered":"Seeing across the Digital Divide"},"author":501,"featured_media":0,"parent":0,"menu_order":0,"template":"","format":"standard","meta":{"_acf_changed":false,"sync_status":"","episode_type":"","audio_file":"","podmotor_file_id":"","podmotor_episode_id":"","castos_file_data":"","cover_image":"","cover_image_id":"","duration":"","filesize":"","filesize_raw":"","date_recorded":"","explicit":"","block":"","itunes_episode_number":"","itunes_title":"","itunes_season_number":"","itunes_episode_type":"","_links_to":"","_links_to_target":""},"categories":[1561,691,121242],"tags":[342892,342912,342902,6811],"department":[488822],"wherenext-category":[],"industry":[],"class_list":["post-229582","wherenext","type-wherenext","status-publish","format-standard","hentry","category-economic-development","category-smart-communities","category-telecommunications","tag-digital-divide","tag-internet-provider","tag-internet-service","tag-market-planning","department-sustainability-risk"],"acf":{"short_description":"In a world where billions of people remain offline, one company is using smart maps to see the business and social opportunities others can\u2019t.","pdf":{"host_remotely":false,"file":"","file_url":""},"flexible_content":[{"acf_fc_layout":"content","content":"Ask urbanites to describe who lives on the wrong side of the digital divide, and you\u2019ll likely hear an answer that involves some combination of people who are poor, live in rural areas, and lack education.\r\n\r\nThat assessment isn\u2019t wrong, but it isn\u2019t complete, either. Across eight major economies\u2014among them the US, India, China, and Japan\u201424 percent of city dwellers <a href=\"https:\/\/www.recode.net\/2017\/6\/20\/15839626\/disparity-between-urban-rural-internet-access-major-economies\">are not connected to the Internet<\/a>."},{"acf_fc_layout":"sidebar","layout":"standard","image_reference":null,"image_reference_figure":"","spotlight_image":null,"section_title":"","spotlight_name":"","position":"Right","content":"<strong>Article Snapshot:<\/strong> Many Internet service providers have overlooked potential customers in locations worldwide, contributing to a digital divide with substantial economic consequences. One innovative provider in Italy is using technology to bridge the divide.","snippet":""},{"acf_fc_layout":"content","content":"The digital divide runs through big cities and small towns, keeping billions of people from a vital source of information, knowledge, and economic opportunity.\r\n\r\nThe cost is substantial. People without reliable Internet access have a more difficult time finding jobs, developing new skills, and improving their economic status, according to a report from the <a href=\"https:\/\/www.stlouisfed.org\/open-vault\/2018\/november\/impact-of-digital-divide\">Federal Reserve Bank of St. Louis<\/a>.\r\n\r\nA look at one European economy exposes the roots of the problem and shows what can be done to address it.\r\n\r\n<strong>Examining Italy\u2019s Digital Divide <\/strong>\r\n\r\nIn some ways, Italy is a paradigm of the world economy\u2014a country undergoing a long-term shift from agrarian society to knowledge economy. That shift has driven much of the population to cities, creating an urbanization phenomenon common in developed nations. Today, just 30 percent of Italy\u2019s residents <a href=\"https:\/\/data.worldbank.org\/indicator\/sp.rur.totl.zs?end=2017&amp;start=1960\">live in rural areas<\/a>. As recently as 1960, 66 percent did.\r\n\r\nAcross the country, 6 in 10 Italians are connected to the Internet\u2014a fairly low rate for a developed economy. (By <a href=\"https:\/\/data.worldbank.org\/indicator\/it.net.user.zs\">comparison<\/a>, America\u2019s rate is 76 percent; Japan\u2019s is 91 percent, and the UK\u2019s is 95 percent.)"},{"acf_fc_layout":"sidebar","layout":"standard","image_reference":null,"image_reference_figure":"","spotlight_image":null,"section_title":"","spotlight_name":"","position":"Right","content":"<h2><strong>Urban Contrarians<\/strong><\/h2>\r\nPlenty of pundits say human populations are moving ineluctably to cities. But a vocal minority believes in the human instinct to buck a trend. Case in point: As some companies invest millions in downtown office buildings, others are leasing <a href=\"https:\/\/www.fastcompany.com\/90336284\/theres-a-new-use-for-americas-dying-malls-co-working\">coworking space in suburban malls<\/a>.\r\n\r\nIn the book <em>Our Towns<\/em>, James and Deborah Fallows document young professionals drawn to <a href=\"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/growth-insights-getting-ahead-of-the-countrys-changes\/\">life outside the big city<\/a>. Meanwhile, a recent <a href=\"https:\/\/www.cbre.com\/configuration\/global%20shared\/content\/articles\/agile-real-estate\/what-millennials-really-want-in-the-workplace\">survey of millennials<\/a> found that 55 percent consider small or midsize towns \u201cfairly\u201d or \u201cvery\u201d appealing.\r\n\r\nWith the help of location intelligence, companies such as EOLO are seeing behind the headlines and delivering services to those who don\u2019t conform to pundits\u2019 predictions.","snippet":""},{"acf_fc_layout":"content","content":"In part, Italy\u2019s digital divide is the byproduct of geographic and economic barriers that few Internet service providers are willing or able to overcome. In the country\u2019s mountains, hills, and valleys, it is not economical to install the fiber wiring that could deliver a broadband digital connection to each house.\r\n\r\nYet, where other companies saw small clusters of residents and a bevy of technical challenges, one Internet service provider saw a business opportunity mixed with a social good. The company used location intelligence to peer through the barriers that kept other providers out of the market.\r\n\r\n<strong>Seeing Unseen Opportunities <\/strong>\r\n\r\n\u201cIt\u2019s easy to cover a big city with fiber,\u201d says Daniela Daverio, CFO of Italian Internet service provider EOLO. \u201cIt's very difficult to cover the municipalities in Italy. But we know that the people are in little cities. So for a social goal, it's important to have a solution.\u201d\r\n\r\nEOLO\u2019s solution is to provide Internet access via a wireless connection. Beginning in 1996 in the north of the country, the company began placing base stations\u2014often in mountainous regions\u2014that beamed broadband access to homes within the station\u2019s line of sight. This over-the-air service doesn\u2019t match the fastest wired Internet speeds (it maxes out around 100 MB per second), but it enables video streaming and other services expected of a modern connection.\r\n\r\nEOLO\u2019s customers number 400,000. A quarter of them signed up last year and 150,000 more are expected to this year. Collectively, they are a testament to the equalizing force and economic power of the Internet. They include:\r\n<ul>\r\n \t<li>Husband-and-wife vintners who <a href=\"https:\/\/www.youtube.com\/watch?v=dMeIMCbYi1k&amp;t=6s\">sell their wine on the Internet<\/a><\/li>\r\n \t<li>The 32 inhabitants of Italy\u2019s smallest town, who are now <a href=\"https:\/\/www.youtube.com\/watch?v=v1zpSTsBKWo\">connected to public Wi-Fi<\/a> and electric vehicle charging stations<\/li>\r\n \t<li>The operator of a <a href=\"https:\/\/www.youtube.com\/watch?v=poxd9jtnQsQ\">chalet in the Alps<\/a>\u2014five days by foot from the nearest supermarket\u2014that takes online reservations for lunch and dinner<\/li>\r\n \t<li>A <a href=\"https:\/\/www.youtube.com\/watch?v=2c1Cut3u6IM\">rural flight instructor<\/a> who stores important customer data in the cloud<\/li>\r\n<\/ul>\r\nBut as Daverio suggests, bridging the digital divide to reach these customers was no small feat. EOLO executives did it by using technology that helped them see what others couldn\u2019t."},{"acf_fc_layout":"form","form_type":"aside","form_position":"Right","form_title":"THE ESRI BRIEF","form_desc":"A biweekly email connecting senior executives and business leaders with thought-provoking articles on location intelligence and critical technology trends.","form_button_label":"Sign up now","form_content":"https:\/\/go.pardot.com\/l\/82202\/2017-10-12\/jw1bmb","form_tag":"low-commitment-form\/sign-up-form"},{"acf_fc_layout":"content","content":"<strong>KPIs Illuminate Smart Maps<\/strong>\r\n\r\nEOLO\u2019s highest concentration of customers live in northern Italy, but over the last decade the company has expanded its service to the country\u2019s midsection. Just this spring, it activated base stations in southern Italy, bringing service to Campania, Sardinia, and Sicily.\r\n\r\nEach town EOLO adds to its territory represents a major capital investment, and executives make those decisions with the help of smart maps. Powering each map is a modern geographic information system (GIS) that helps executives clearly see the technical and business challenges before them.\r\n\r\n\u201cIn strategic planning, it's very important to know how to invest in a territory to have a return on investment,\u201d Daverio told <em>WhereNext<\/em>. \u201cWe use GIS to know the promising territory, to know the growth of the possible customers in this territory, and so I can do a profit and loss for each area. It is very easy to make strategic decisions with the KPIs that I have.\u201d\r\n\r\nThose KPIs on investments and network performance appear as layers on the smart map created by Riccardo Armellini and his colleagues\u2014members of EOLO\u2019s strategic planning team. GIS, he says, has given decision-makers clearer vision.\r\n\r\n\u201cI think they can see things that they didn't see before,\u201d Armellini says. \u201cIt's another point of view to drive better decisions.\u201d\r\n\r\nThe first data layer Daverio and her colleagues review shows how many potential customers a town or small city holds. That data comes directly from the company\u2019s website, where residents enter their addresses to see whether EOLO provides service to their area. Those requests show up as clusters of dots on the smart map.\r\n\r\nArmellini and the GIS team deepen the analysis by layering in additional levels of <a href=\"https:\/\/www.esri.com\/en-us\/location-intelligence\">location intelligence<\/a>, including demographic data on how many families live in the area and how many businesses operate there. That insight helps round out the demand picture, revealing whether there is enough interest to make EOLO\u2019s investment profitable.\r\n\r\nBut the market assessment isn\u2019t complete until the engineers weigh in."},{"acf_fc_layout":"quote","image":229562,"text":"With GIS, we can see all the KPIs that are important to knowing the business and to knowing the trend of [customer] orders. It's important to do this analysis.\u201d","author_name":"Daniela Daverio, EOLO","author_profession_organization":""},{"acf_fc_layout":"content","content":"<strong>Taking the Measure of the Land <\/strong>\r\n\r\nThe critical next step for EOLO is a suitability analysis that determines whether the company\u2019s wireless service will work in the prospective location.\r\n\r\nConsider an Italian town of a thousand people. The GIS-powered smart map shows a healthy percentage of inhabitants interested in broadband service. Now, EOLO engineers must decide where to place a base station to ensure line of sight to as many homes as possible.\r\n\r\nThey use GIS to analyze the town\u2019s morphological data\u2014the exact slope, undulation, and elevation of the land relative to the position of houses. In that way, GIS helps technical planners design a coverage map that pinpoints which buildings can receive Internet service.\r\n\r\nBut it\u2019s not purely a technical undertaking\u2014it\u2019s also a business exercise that affects ROI.\r\n\r\n\u201cWe are showing the technical division some commercial bits of information,\u201d Armellini says. \u201cIf [the engineers] know exactly where the potential is, they can design the base stations and the coverage for exactly the right area.\u201d"},{"acf_fc_layout":"quote","image":229572,"text":"Location intelligence helps us to be more efficient in our development, to develop our network in the right places, and to cover the right areas and expand our market.","author_name":"Riccardo Armellini, EOLO","author_profession_organization":""},{"acf_fc_layout":"content","content":"<strong>Seeing KPIs to Propel the Business <\/strong>\r\n\r\nAs towns and small cities come online, EOLO executives monitor their status through the smart map, assessing KPIs such as service activations, customer churn rates, and market share, as well as network quality and congestion.\r\n\r\n\u201cIt's very easy to use [the map] because you can turn on a single KPI or turn off different KPIs at the same time,\u201d Daverio says. That form of location intelligence helps decisions-makers see the status of EOLO\u2019s networks, as well as the company\u2019s market opportunities.\r\n\r\n\u201cWithout GIS, it would be like throwing dice,\u201d Armellini says. \u201cYou don\u2019t know where to go, and why to go there.\u201d\r\n\r\nSpeaking of location intelligence technology, Daverio says, \u201cI think that the most important thing is to use this tool to go directly to the correct area, the correct investments. For example, in the south of Italy, I see all these logs. I know that is a territory where we can do very good with our solutions.\u201d\r\n\r\nFor EOLO customers Simone and Miriam, winemakers in the north of Italy, the fruits of crossing the digital divide are clear. The Internet, they say, has opened new markets for them. They now sell 10,000 bottles of wine online, and live-broadcast the grape harvest on Facebook.\r\n\r\nIt\u2019s a story that mirror\u2019s EOLO\u2019s own. With the guidance of smart maps, EOLO has found new markets in overlooked places, bringing more citizens across the digital divide.\r\n\r\n&nbsp;\r\n\r\n(For an inside look at how India's largest mobile network operator built the infrastructure to serve 350 million customers, <a href=\"https:\/\/www.esri.com\/about\/newsroom\/blog\/location-intelligence-helps-jio-grow-quickly\/\">read this Esri Blog<\/a>.)"}],"references":null},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.9 (Yoast SEO v25.9) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Wireless Internet Service Provider Helps Bridge the Digital Divide \u2502 Digital Equity<\/title>\n<meta name=\"description\" content=\"Some Internet service providers are working to bridge the digital divide by delivering Internet connections to people off the beaten path.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link 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Through his writing, he explores the intersection of business strategy and location intelligence\u2014and strategic challenges like sustainability, growth, and risk. Prior to joining Esri, Chris managed internal content for PTC, a pioneer in IoT technology, smart products, and augmented reality. 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