Telecom & Digital Media
Industry Overview
The economic boom of the 1990's created an array of opportunities for both consumers and the telecommunications industry in the State of Colorado. Telecommunications which includes the wireline and wireless telephone communications, cable and other pay television services, internet service providers, and other companies that provide the means to deliver voice, data and video to end users blossomed in Colorado during this time.
Despite a significant downturn that followed the bursting of the tech bubble, which hobbled the industry throughout the country, telecommunications companies continue to be a substantial driver of Colorados economy. Colorado remains a leader in telecommunications, and industry leaders such as Qwest Communications and Level 3 maintain their company headquarters in Colorado.
Colorado companies are rising to industry challenges, developing new processes and technologies to provide increased bandwith and secure, high quality IP networks over both wireline and wireless platforms. Already a national center for businesses in broadcasting and telecommunications, Colorados telecommunications industry is poised for impressive and sustained growth as Internet Protocol revolutionizes modern life through groundbreaking innovations in communicating voice, data and information, listening to music, and watching digital content, for example.
Qwest is the major provider of local telephone service in Colorado, but at least fourteen other providers, such as CenturyTel and Plains Cooperative, serve many rural areas of the state. In addition, there are fifteen single exchange providers operating in Colorado. Long distance and wireless options are many, and competitively priced.
Telecommunications Quick Facts
- Telecommunications equipment is one of Colorados largest exports, which is a testament to the strength of the industry.
- There were nearly 50,000 telecommunications professionals employed in Colorado in 2005.
- The Federal Institute for Telecommunication Sciences is located in Boulder.
- Metro Denver has the highest concentration of broadcasting and telecommunications employment in the country in 2006.
- Colorado ranks 3rd in the nation for investment in wireless technologies, according to a 2006 CDW Government study.
- Metro Denver ranked 7th among the 100 largest metro areas for public wireless internet access in 2005, according to Intel.
- With some of the highest population and business growth rates in the nation, Colorado telecom companies have access to a consistently growing customer base.
| Qwest | Level 3 | EchoStar | AT&T Corporation |
| Avaya | Time Warner Telecom | Comcast | DirecTV |
| Liberty Media Group | Lucent Technologies | Verizon Wireless | T-Mobile and Sprint Nextel |
Statewide Multi-Use Network (MNT)
The MNT is a public-private partnership between the State of Colorado and Qwest to build a high-speed fiber-optic network for the state. The goal has been to bridge the digital divide and enable the same digital applications and services in rural counties as well as the metropolitan areas. The State has consolidated government agency functions and acted as an anchor tenant to help leverage development of telecommunications infrastructure in all regions of the state.
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Why Colorado
Colorado is a telecommunications leader for a variety of reasons, including a robust and highly qualified technology workforce, extensive telecom infrastructure, a growing customer base, and a low cost of doing business. Please see below for some reasons why Colorado is the ideal location for the telecommunications industry.
1. Location, Location, Location
- Due to its unique geographic location on the 105th meridian, Denver is the only major city in the United States offering single-relay, one-bounce uplinks to world satellite networks and real-time connections to six out of seven continents in a single business day. (Development Research Partners)
- Denver International Airport (DIA) is the sixth busiest airport in the nation and home to more than 30 commercial carriers which serve over 135 domestic and international destinations with nonstop service. (U.S. Bureau of Transportation Statistics, 2006)
- Colorado's central U.S. location allows convenient access as air travelers can easily reach two-thirds of the nation within two hours. Further, Metro Denver is within four hours flying time of every major city with a population of one million or more on the continent.
- International passengers at Denver International Airport increased 32.4 percent in 2005.
- Denver, the state capital, is located at the exact midpoint between Tokyo and Frankfurt, offering opportunities to easily serve growing world markets.
- The entire state is located in the Mountain Time Zone, allowing communications with both coasts, and with Europe, South America, and the Far East in the same business day.
- The risk of natural disasters (hurricanes, tornados, and earthquakes) in Metro Denver is minimal compared to locations on the east, west, and southern coasts. (National Disaster Coalition)
2. A large concentration of high-quality technology workers.
- Colorado's strength in mature high tech industries such as telecommunications, software development, and high tech manufacturing has resulted in the highest concentration among all 50 states of high tech workers. For the seventh year in a row, Colorado has the most tech workers per capita in the nation with 89 of every 1,000 private sector workers employed in technology firms. (AEA, Cyberstates 2006)
- Colorado's tech community ranks fifth in the nation when it comes to raising research money from the nation's $2 billion Small Business Innovation Research (SBIR) program. Colorado's tech startups won approximately $81 million in SBIR funds in 2003, more than comparable tech hubs in New York, New Jersey, Texas, or Washington. (The Denver Post, 2005)
- With 35.5% of the adult population having completed a bachelor's degree or higher, Colorado ranks as the second most educated state in the country. (American Community Survey, 2005)
3. Low to moderate costs of doing business.
- Metro Denver average office occupancy costs of $19.03 per square foot are lower than most worldwide cities, and other metro areas such as Colorado Springs, Pueblo and Grand Junction are even lower. (CB Richard Ellis, May 2006)
- Colorado is the 22nd least expensive state in the nation in which to do business, according to an index based on wage costs, taxes, electricity costs, and real estate costs for industrial and office space. (Milken Institute, Cost of Doing Business Index, 2005)
- Colorado ranks fifth in the nation for economic competitiveness based on government and fiscal policy, security, infrastructure, human resources, technology, business incubation, openness, and environmental policy factors. (Beacon Hill Institute, 2005)
- Colorado has the 12th most business-friendly tax climate in the nation according to the State Business Tax Climate Index. Colorado ranks sixth in the corporate tax index, a sub-index of the overall tax climate index. Colorado has one of the lowest corporate income tax rates in the nation with a rate of 4.63%. (The Tax Foundation, 2006)
- Colorado allows accelerated depreciation schedules for telecommunications equipment for calculating personal property tax liability.
4. A better quality of life.
- Colorado residents enjoy an active, outdoor lifestyle contributing to our Mountain West quality of life. Metro Denver has ranked as one of the thinnest, fittest metro areas in the nation in a variety of health and fitness publications.
- Metro Denver was named as one of the nine most livable large cities in the United States. The 2004 livability list was based on creativity and the ability to prepare for the new economy. (Partners for Livable Communities, 2004) Fort Collins, Colorado Springs, Westminster and Longmont were selected by Money Magazine as four of the best places to live in the nation.
- Metro Denver's cost of living is lower than nearly all of its competitor metropolitan areas, much lower than many coastal cities. Other Colorado cities have even lower costs of living. (ACCRA, 2006)
For more information, visit: http://www.colotelecom.com/