1. Advanced Telecom and Broadband Deployment In Arizona Arizona Telecommunications and Information Council Communications Infrastructure Advisory Committee, Governor’s Council On Innovation and Technology

2. Arizona Telecommunications and Information Council Telecom in Arizona Status and Initiatives Michael Keeling, ATIC Chair

3. Arizona Telecommunications and Information Council Critical Infrastructure In our Networked World affordable broadband Internet and advanced telecommunications services are critical infrastructure to support: Community development Critical services such as police and fire Telemedicine and health care institutions eLearning for P-20 through life long learning eGovernment for improved citizen services Economic development including growing existing businesses and starting or attracting new businesses Estimated $8.5 Billion increase in GDP, $100 Million increase in State revenue for, 11,500 new (mostly hi-tech) jobs*

4. Arizona Telecommunications and Information Council What is Broadband  The FCC defines broadband as an Internet connection at a speed of 200 kilobits per second (kbps) in either direction (basic services).  In the Networked World this basic broadband service is no longer adequate to support services such as eCommerce, eHealth, eGovernment, and eLearning  ATIC and CIAC have recommended advanced broadband services providing a minimum of 1 Mbps

5. Arizona Telecommunications and Information Council Status of Broadband In Arizona  Greater metropolitan areas have an increasing number of affordable basic (200 Kb) and advanced (1 Mbps +) broadband options  Many smaller and rural communities are under-served or have no broadband access. The majority of rural communities now have access to basic broadband last-mile services such as cable modem, DSL, or wireless. Of Arizona’s 225 communities of 500 population or more, 40 have no Broadband availability.  Many rural communities still lack consistent coverage of basic broadband services and they do not have the infrastructure to support advanced (1mps+) broadband deployment.

6. Arizona Telecommunications and Information Council Status of Broadband In Arizona  As of 2006 20% of rural districts have schools with only Dial-up (56k) connection to the Internet  Of the rural communities that have services, many still face middle and last-mile deficits, experiencing much higher service costs, making it unaffordable to end users. In many where Broadband is available, the rates are 2 - 3 times more expensive than rates in Phoenix or Tucson.  An estimated 50% of Arizona citizens in rural communities and a half million in urban communities (totaling about 20% of the State’s population) do not have access to advanced broadband connections  Many rural communities also lack redundancy in order to maintain connectivity in the event of network failure

7. Arizona Telecommunications and Information Council Barriers, Strategies and Policies  ATIC and CIAC have identified barriers to deployment of advanced telecommunications services and broadband Internet access to rural and under-served communities  ATIC and CIAC adopted eleven strategy and policy recommendations to overcome these barriers Advanced Telecom and Broadband Deployment in Arizona - ATIC Recommendation to the Governor's Council on Innovation and Technology - May 2005

8. Arizona Telecommunications and Information Council Goals  Accelerate deployment of advanced telecommunications services and affordable broadband Internet access throughout the State.  Develop voice, video and data applications that ride over the infrastructure that will link the Arizona community and support education, economic and community development.  Develop strategies to Bridge the Digital Divide  Support tribes and local communities in development and implementation of technology infrastructure strategies and initiatives.

9. Arizona Telecommunications and Information Council Strategy  The strategy is to remove barriers and develop public policies and market-driven strategies that will encourage competition, private-sector investment in, and rapid deployment of telecom services  Where no market-driven solution can be found, we need to identify ways in which communities and the State can “fill-in” the gaps.

10. Arizona Telecommunications and Information Council  Middle Mile  Interoperability  Redundancy Infrastructure Development Deficits

11. Arizona Telecommunications and Information Council Middle Mile and Redundancy  ATIC and CIAC have been focusing on deployment of redundant middle mile services  Two primary telecom services Last Mile and Middle Mile Last Mile is the connection between the ISP and end user - businesses, homes, schools, etc. The Middle Mile is the connections between local communities and the Internet backbone in the metropolitan areas such as Phoenix and Tucson

12. Arizona Telecommunications and Information Council Middle Mile  If a common middle mile infrastructure is not available, at reasonable rates: Communities may not be served Communities or last mile providers must construct their own Last mile costs and end users rates will be higher

13. Arizona Telecommunications and Information Council Barriers to Broadband Deployment  Lack of Statewide Focus, Planning and Coordination  Provider Return on Investment Requirements  Access to Rights-of-Way  Funding

14. Arizona Telecommunications and Information Council  Return on Investment: Requires a balance between deployment costs, affordable end user rates, and the length of time for the provider’s ROI (18 - 24 months)  Access to Rights-of-Way: Federal, tribal, state and local Rights- of-Way issues such as multiple jurisdiction permitting, delayed application approvals, and unequal and prohibitive fees  Planning and Coordination: There is no coordinated statewide strategy We are not leveraging existing investments Losing out on millions of federal dollars Barriers To Middle Mile Deployment

15. Arizona Telecommunications and Information Council Recommendations  Establish a Telecommunications Infrastructure Advisory Committee under the Governor’s Council on Innovation and Technology  Develop a Broadband Development Authority Provide Focus, Planning and Coordination Develop dedicated funding mechanisms and strategies such as an Arizona Broadband Universal Service Fund  Provide support for the development of a Statewide Telecom Strategic Plan that will enable the vision, framework and strategies for the deployment of a statewide telecom infrastructure.

16. Arizona Telecommunications and Information Council Recommendations  Convene a series of regional and statewide Telecom Roundtables  Provide state support to identify potential funding sources and provide grant writing assistance to help fund state and local telecom infrastructure projects  Implement a strategy to facilitate increased use of the federal E-rate subsidies in the state  Provide ongoing funding for Community Telecommunications Assessments and Plans to identify community telecom assets, assess their needs, and develop and implement telecom infrastructure strategies and initiatives

17. Arizona Telecommunications and Information Council Recommendations  Adopt an Arizona definition of Broadband to be a minimum of 1Mbps  Encourage access to local, state, federal and tribal rights-of- way  Monitor legislative actions to ensure that explicit or de facto barriers to municipal participation in Broadband deployment are eliminated.

18. Arizona Telecommunications and Information Council Implementation Strategies Ron Schott, Chair, CIAC Strategic Plan Committee

19. Arizona Telecommunications and Information Council Key Reports Provide Framework  Connecting Arizona: Ensuring Broadband Access for All ATIC Strategic Plan Committee - Fall 2002  Advanced Telecom and Broadband Deployment in Arizona ATIC Recommendations to the Governor's Council on Innovation and Technology - May 2005  2005 Statewide Network Request For Information (RFI) Communications Infrastructure Advisory Committee 2005  Arizona Broadband Initiative Framework Report Center for Digital Government – Arizona Department Of Commerce & CIAC

20. Arizona Telecommunications and Information Council ATIC/CIAC Priorities  State Strategic Telecom Plan  Arizona Broadband Development Authority Leadership, Planning and Coordination Funding mechanisms and strategies  Rights-of-Way access  Local/Regional/Community/Tribal planning and policies  Telecom Summit

21. Arizona Telecommunications and Information Council Arizona Broadband Initiative Framework Report Center for Digital Government Funded by:  Arizona Government Information Technology Agency  Commerce and Economic Development Commission (CEDC - Arizona department Of Commerce)

22. Arizona Telecommunications and Information Council Arizona Broadband Initiative Framework Report  Premises Broadband is a fundamental utility Other states are establishing broadband capability in rural areas  Objective Identify programmatic components with high potential for benefit to Arizona

23. Arizona Telecommunications and Information Council Tasks  Review public sector legal, policy and economic programs and incentives Utilized in other states designed to promote broadband deployment  Focus on program components that support extension of broadband to rural Arizona (Rural BB)  Make recommendations

24. Arizona Telecommunications and Information Council Assessment Scope  14 State Programs: NC, ME, MI, IL, UT, WA, CO, VT, SC, MN, MO, KS, CA, NE, and OK  6 Community Deployments Tempe AZ Moorhead MN Chelan County WA, Nelson County VA Philadelphia PA Tribal Digital Village Consortium San Diego County, CA

25. Arizona Telecommunications and Information Council Recommendations  Engage government as a catalyst  Identify, encourage and promote local initiatives and preserve local government’s authority to deploy broadband networks  Hire a professional grant writer to create and coordinate broadband telecommunications grant applications  Inventory broadband infrastructure and identify priority deployment areas

26. Arizona Telecommunications and Information Council Recommendations  Actively seek public-private partnership proposals to maximize existing public infrastructure and public assets  Streamline regulation and fee structures for access to public rights-of-way, either through executive order or legislation  Create a broadband deployment coordinating authority or nonprofit corporation with the ability to fund and manage specific projects  Create a statewide broadband “Champion”

27. Arizona Telecommunications and Information Council Four Models  The state encourages private sector investment (Washington and Colorado) creates a statewide public service network connecting all levels of government, education and healthcare aggregates public sector demand and becomes the anchor tenant creating the demand for private sector investment  Creation of a public-private partnership coordinating organization (Kentucky, North Carolina, Utah) a state-chartered nonprofit corporation to coordinate infrastructure expansion efforts draws on both public and private resources

28. Arizona Telecommunications and Information Council Four Models  Strong executive leadership and the creation of a Broadband Authority by executive order from the Governor or by legislation (Michigan, California, Vermont and Maine) provides planning, coordination and leadership creates a dedicated funding mechanism such as a state Broadband Universal Service Fund makes grants or loans to commercial providers or communities reforms the processes governing access to public rights-of-way  Hybrid Model Based on elements from each of the above models