Expand our telecomm infrastructure
New Mexico Business Weekly - April 19, 2002by Randy Burge. Guest Columnist
I have seen articles recently in the New Mexico Business Weekly and several other New Mexico news publications about the state of New Mexico's MAGnet initiative. The articles did a good job describing MAGnet, but I wanted to take a moment to impress upon everyone the enormous importance of MAGnet to New Mexico's citizens and business community.
As stated in the articles, MAGnet is an initiative of the state of New Mexico to create a statewide high-speed data network, consolidating more than 30 disparate state agency networks into one much more powerful and integrated network. By serving as the anchor tenant of this new network, the state leverages its massive purchasing power to support the business case for the private sector to introduce advanced telecommunication services to all parts of the state. This approach has the potential to remedy the long-standing absence of adequate telecommunication infrastructure in New Mexico that has held back our economy. During my nine years as the lead business recruiter at the Economic Development Department, I witnessed, first-hand, how New Mexico's poor telecommunications infrastructure hampers our economy and discourages business investment in the state.
As the founder and president of the New Mexico Information Technology and Software Association (NMITSA), this limiting reality has been made even more stark to me from the view of the IT industry. Many millions of dollars are put into the pockets of rural and urban New Mexicans working in the IT industry, but with a broadly deployed and enhanced telecommunications infrastructure, many more millions of dollars in wages and thousands of higher paying, internationally competitive jobs are possible.
More than 80 percent of New Mexico's technology companies are in the Information Technology industry (over 850 companies). These companies have substantial requirements for high speed Internet and other advanced telecommunications services. In a NMITSA member survey, members advocated that telecommunications infrastructure is one of the most limiting factors for growing IT businesses in either urban or rural New Mexico.
There are approximately 240 computer/software/IT related businesses in rural New Mexico. These rural companies contribute more than $47 million in wages, with rural IT industry wages paying at 143 percent of the state's average wage (Rural IT industry wage, $33,500, compared to state average wage, $23,500) (urban IT industry average wage is $37,000, 158 percent of state average wage). In the overall economy, 45 percent of New Mexico businesses, more than 19,000, are in rural New Mexico and most of these businesses will benefit from an enhanced rural telecommunications infrastructure. MAGnet provides a dynamic and brilliant way to expand these top-paying and company growth opportunities more fully into all regions of the state, especially in light of the Rural Software Development tax credit bill that NMITSA and others championed successfully through this past legislative session.
Organizations like ConnectNM, Rural Pay Day, TRADE, TAG, NMITSA, NMIDEA, and others have worked tirelessly for years to promote rural connectivity, telecommunications competition and rural economic development. The legislative and executive branches of state government have attempted to address these tough issues as well, led in part by the visionary efforts of Representative Lucky Varela and others. MAGnet has the potential to finally offer these advanced data services these groups have sought for years.
The MAGnet initiative must be viewed as more than a way to get cheap data network rates for state agencies. As Governor Johnson stated in his commentary in the April 8 issue of NMBW, it is a way for the state to use its purchasing power to build out an advanced telecommunications network that will benefit local governments, schools and private business as well.
We need to encourage the state to choose a solution that supports all of the goals of the project, including favorable pricing, advanced rural connectivity, competition and stimulating economic development
The state's capable CIO, Bob Stafford, is leading the procurement committee that will decide whether this initiative simply gets the state agencies cheaper network services, or whether this initiative also leverages the state's purchasing power to aid our rural schools and community centers, businesses and economies.
Please contact Bob Stafford at 476-0400. Tell him that the MAGnet initiative should leverage more than just cheaper rates for state agencies by considering the major economic development implications of the MAGnet procurement decision.
Randy Burge is president of the New Mexico Information Technology and Software Association (NMITSA) in Santa Fe.
