State and Regional Models for Increasing Broadband Access and Usage

1. State and Regional Models for Increasing Broadband Access and Usage TECH NET & California BTH Agency Broadband Best Practices Summit June 29th 2007 Presentation by Galen Updike State of Arizona Government Information Technology Agency (GITA) gupdike@azgita.gov

2. Living In The Networked World “Wired or wireless, with the proliferation of: • the Internet, • mobile phones, • communication devices, • and wireless networks; “We are rapidly moving from a world of simple voice communication and isolated desktop computing to an interconnected world of: • networked communities and • anytime/anywhere connectedness, ” “Where everyone and everything is connected. ” “The Network will operate everywhere, connecting people and devices seamlessly.” Living in a Networked World-Computer Systems Policy Project

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

4. Currently in Arizona • It’s estimated that up to 1 Million citizens in Arizona do not have access to even FCC definitions of Broadband (Download and upload at 200Kbps) Of Arizona’s 225 communities of 500 population or more, an estimated 40- 50 have no Broadband availability. In many areas where Broadband is available, the rates for a T-1 line are 2 - 3 times more expensive than rates in Urban Arizona (Phoenix or Tucson). Though Providers indicate that over 80% of Arizona’s rural communities have access to DSL, such reported coverage is mainly in the more dense centers of those communities, leaving as many as 50% outside of DSL areas. Reporting that connectivity exists where so many cannot connect is also harmful to future deployment. 20% of Arizona’s School Districts have schools within the district with only Dial-up (56k) connection to the Internet. • There are huge gaps in Arizona’s “Middle-Mile” infrastructure (Backhaul between a community and Tier One site in Phoenix or Tucson). • Telecom infrastructure in rural Arizona is incapable of supporting long-term economic development goals, with huge negative impacts.

5. Barriers to Broadband - Broadband not treated as Critical Infrastructure in law - Lack of Middle Mile Infrastructure and local off-ramps - Ownership of Broadband is in the Private Sector Providers are concerned about their ROI from the infrastructure, and are typically NOT financially involved with Applications running on the infrastructure, creating a disconnect of purpose. Connecting Applications to ROI – Difficult without aggregation - Right of Way is a major barrier and cost element of Deployment - Citizens pay for the same Right of Way over and over again (unlike other Critical Infrastructure). - Arizona’s GIFT Clause – Prohibits Public dollars invested or used in the Private Sector - Diffused Leadership – No collective voice or plan

6. Infrastructure Barriers in Arizona Note the Stranded single runs and lack of loops. Lack of redundant paths can devastate whole regions when outages occur. Note lack of Interconnection between areas of Telco owned Fiber Law of Supply and Demand evident in End user Costs for Broadband Tariff (2004) for T-1 line in Arizona >$600 + Distance charge

7. Breaking News America Trails Other Countries in High-Speed Internet Access ABC News - Jun 26, 2007By LESLIE CAULEY The USA trails other industrialized nations in high-speed Internet access and may never catch up unless quick action is taken by public-policymakers, a report commissioned by the Communications Workers of America warns. AVG Connection speed in Japan 61Mbps, in USA 1.5Mbps

8. Arizona Sources of Telecom Policy • Arizona Telecommunication and Information Council - (ATIC) - Arizona’s recognized and authoritative organization guiding telecom and other technology policy development, serving as a leading source of information and expertise on telecommunications and information technology matters.  • Communications Infrastructure Advisory Committee (CIAC) - A 21 member Public/Private Committee of the Governor’s Council on Innovation & Technology (GCIT). It Advises GCIT on policies and strategies to close the Digital Divide in Arizona CIAC, in cooperation with ATIC, is charting a long-range roadmap and strategic plan to overcome barriers to statewide broadband deployment.

9. CIAC - Four Priorities • State Strategic Telecom Process • Arizona Broadband Development Authority (ABDA) • Leadership, Planning and Coordination • Funding mechanisms and strategies, including a Broadband Universal Service Fund (BUSF) • Rights-of-Way access as part of Authority • Local community/Tribal planning and policies

10. The Broadband Standard – an Issue • 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 to be at a minimum of 1 Mbps

11. Sources of Policy – Previous Activities Milestones Leading to Current Conclusions • Initial TISC Reports 2004 (see GITA Website) • RFI Activities Maps, and Report – 2005 • 11 GCIT Recommendations -2005 • CIAC 2006 Year in Review – Report on Task Group activities • Arizona Broadband Initiative Framework Report - 2007 - written by Center for Digital Government & Funded by GITA and CEDC

12. Arizona Legislation - 2007 • eSATS Legislation HB2742 - Directed at funding for Arizona to utilize and robustly embrace e-Learning best practices within K-12 Education - Passed and Signed into Law. • ATIC’s SB1060 - Legislation to create a Broadband Authority and Arizona Broadband Universal Service Fund (ABUSF) - Withdrawn - Now “Strawman” legislation and targeted for 2008. • CEDC and GADA Legislation – Withdrawn and targeted for 2008

13. Sources of Policy - Arizona Broadband Initiative Framework - Report Key Conclusions: • Inventory the State’s broadband infrastructure • Establish formal Leadership such as an Arizona Broadband Development Authority • Explore potential for Commerce Dept existing funding sources - GADA and CEDC - to aid this effort • Establish a system to: • Encourage access to and • Streamline regulation of rights-of-way • Actively seek public-private partnership proposals to maximize • Existing infrastructure and • Public assets including right-of-way

14. Arizona Broadband Development Authority • Arizona Broadband Development Authority (ABDA) • Legislative Action to establish • Recommended that GITA manage ABDA • Focus on Buildout of “Middle Mile” by 2012, then sunset • Funding authority within ABDA including Broadband Universal Service Fund by Internet users (estimated $.50/mo/user) • Survey Arizona geography via school districts

15. Sources of Policy – Leadership Summit

16. Emerging LastMile Technology - WIFI • WiFi technology provides an inexpensive and commonly available method of broadband transport for all communities (public and private), and is especially suited as the initial network in a broadband deficit area. • Experience shows that WiFi resources can be installed successfully in rural settings, thereby connecting cities and communities into one large grid, instead of islands of separate connectivity

17. U.S. WIFI Growth

18. Barriers to WiFi Deployment • Overcoming Inertia and Fitting into the Broadband Landscape • Technology Nay-sayers • Vertical Right-of-Way for Access Points • Changing Technology (18 month half life) • Competitive Timing (Sustainability Issue) • Competitive Government Plans or Visions • Bureaucratic Snafus • Intergovernmental Priorities & Relations

19. A NEW chance for an old Arizona MiningTown

20. A Challenging Locale Superior was a boomtown in the 1890’s and in the 1940’s Can it prosper Again ? Until a WiFi Network was available, A broadband connection was out of reach for most residences

21. Collaboration by Government Committees and partnerships included financial and/or technical support, leadership and expertise from several agencies: • US Dept of Agriculture (USDA) • Az Dept of Commerce (ADOC) • Governor’s Information Technology Agency (GITA) • Pinal County Government • Central Arizona College Small Business Development Center • Arizona Small Business Association (ASBA) • Central Arizona Association of Governments (CAAG)