Broadband Study Released

Earlier this year, Russ Kashian, director of the Fiscal & Economic Research Center (FERC) and a professor of economics at UW-Whitewater, conducted a study of the economic impacts of broadband connection to vacation homes in in the five-county vacation region of Forest, Langlade, Lincoln, Oneida and Vilas counties.

The study found that providing the sort of broadband services that second-homeowners have at their primary residences would generate $91 million annually in economic activity and create 1,750 new jobs.

At the behest of Liberty Grove Information Technology Committee Chair David Studebaker, Kashian and his FERC team turned their attention to Liberty Grove and what would happen economically with expanded broadband services. The specific goal was “to determine the extra amount of money spent in the local economy, as a consequence of second-home owners staying additional days if they had faster and more reliable Internet.”

Kashian attended the Oct. 15 meeting of the Liberty Grove Town Board to give the results of the free survey.

“When I was called by David, I was excited because it’s a contiguous area and it’s very homogenous in its geography,” Kashian said.

Kashian said there is no doubt that lack of Internet access is hampering economic growth in Door County.

“It makes it very difficult to conduct business and to exist in a modern society, and so people object,” he said. “If people have access to faster, more reliable Internet, as they perceive it, they would spend more time here.”

With help from the town, FERC sent surveys to part-time residents at their permanent homes. There are about 600 permanent residents in Liberty Grove and 1,000 part-time residents.

“We got a little more than 20 percent response, which is pretty darn good for an unsolicited survey,” Kashian said.

The main question was:  How much longer would you stay in Liberty Grove if you had access to broadband Internet?

Fifty-eight percent of respondents said they wouldn’t stay any longer. Fourteen percent they would stay up to two weeks longer. Eleven percent said they would stay up to one month longer, another 11 percent said they would stay up to three months longer, and five percent said they would move permanently to Liberty Grove if they had access to broadband Internet.

Almost 20 percent of respondents “declared that Internet issues is a major barrier that prevents them from staying additional days in their vacation homes.”

The FERC survey determined that part-time residents spend $117.83 per day while in their vacation homes. Multiplying that average daily expenditure times the average number of extra days residents would spend in their vacation homes (12.1 days), a total of $1,425.74 more would be spent per seasonal home annually in the local economy, resulting in job creation, higher tax revenues and better infrastructure throughout the county.

Kashian also reported that respondents said they would be willing to pay $167 per year on improved Internet service.

“I think $167 is a little high, but they are willing to pay something,” he said.

Asked what the solution is, Kashian said, “I believe the private sector is the answer to all problems.”

Kevin Voss, owner of DC Broadband, certainly wants to be the solution. Voss was at the Liberty Grove meeting and explained that the company’s goal is to find holes in broadband service and fill those holes with broadband towers. He said his company is hoping to put in five new towers this year and three more next year.

“We’re called Door County Broadband for a reason,” Voss said. “Our geeks here identify holes where there’s population, and what is it we have to do to get these holes filled.”

One of the towers going up now will serve the Town of Nasewaupee.

“They literally reached out. Steve [Sullivan, Nasewaupee town chairman] called and said, ‘Can you guys give us a hand down here?’” Voss said.

A second tower is going up on Zirbel Road, also in Nasewaupee.

“So two massively underserved areas,” Voss said.

He added that the company has also been working with the Town of Liberty Grove.

“There is a proposal that we put together at their request to get a tower there,” Voss said. “They’ve asked us to help them in a number of areas. They’re trying to help the residents. So what we’re trying to do is addressing holes that should have been addressed.”

Voss, who purchased the company last April, said he is tying up a lot of money in building these towers.

“We are putting at risk a lot of long-term dollars that this will pay off,” he said. “These towers aren’t cheap. We know what our break even is on every tower. Every tower we put up, we suck eggs up until a certain point. I truly believe that Internet should never be a barrier to where you want to live, work or play. Up here it is a barrier. Our goal is to change that. We’re going to do it as fast as we can do it.”