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Pennsylvania Broadband Stimulus Initiative

Learn about Pennsylvania's aggressive rural broadband deployment program, funded by local rate increases and state initiatives. Discover the state's plans for expanding broadband access and supporting education technology.

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Pennsylvania Broadband Stimulus Initiative

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  1. Commonwealth of Pennsylvania Broadband Stimulus Initiative National Telecommunications & Information Administration (NTIA) Washington, DC May 6, 2009

  2. Attendees Commonwealth of Pennsylvania • Naomi Wyatt, Secretary of Administration; Governor’s Office of Administration • Brenda Orth, Chief Information Officer; Governor’s Office of Administration • Rebecca Bagley, Deputy Secretary for Technology; Department of Community & Economic Development • Luc Miron, ARRA Broadband Project Manager; Governor’s Office of Administration

  3. Commonwealth Broadband Initiatives Chapter 30 Amended by Act 183

  4. Pennsylvania Background Pennsylvania Background • Most aggressive rural broadband deployment program in Nation according to United States Internet Association • $193 million in total cumulative local rate increases from 2005-2008 to fund broadband deployment • Projected rate increases in place of $98 million for 2009. • Rate increases are continuing into the future • “Shovel ready” unmet aggregate demand stemming from state broadband initiatives • US Census: 3rd largest rural population behind TX and NC; 3rd largest elderly over age 65 behind FL and W Va

  5. Pennsylvania Chapter 30 • Chapter 30 originally enacted in 1993 to achieve early deployment of universally available state-of-the-art broadband network in Pennsylvania, re-enacted in new form in November 2004 (Act 183) • Authorized several ambitious initiatives that will substantially increase the investment in Commonwealth telecommunications infrastructure • Act 183 mandate for Department of Community and Economic Development (DCED) to create an Inventory of Services database • Collection, compilation, and maintenance of a comprehensive listing of broadband services available from all broadband providers operating in the Commonwealth, regardless of technology used

  6. E-Fund Education Technology Fund (E-Fund) of November 30, 2004 (Act 183) • Purchase or lease of telecommunications services, infrastructure, or facilities to establish and support broadband networks between, among, and within school entities (Intermediate Units and School Districts) • Purchase or lease of premises telecommunications network equipment and end-user equipment • Distance learning initiatives using the foregoing broadband networks

  7. Pennsylvania Proposals For Consideration by NITA

  8. Update on Activities • Responses to FCC solicitations and joint NTIA/RUS RFI • Intra-agency coordination – Governor’s Office, Office of Administration, DCED, PUC, DGS, Health, Education, others • Coordination with telecommunications carriers and interested stakeholders • Public meetings in rural PA • Development of plan / prospective NTIA application • Identification of potential ‘shovel ready’ projects • Updates to state mapping inventory

  9. Discussion Items PA is poised to execute on BTOP project • State strategy in place • Availability of preexisting and documented demand for broadband services – shovel ready • Mapping inventory points to “unserved” and “underserved” priority areas • Statewide public safety tower network could help extend reach into last-mile areas • Statewide telecommunications procurement being finalized; could help direct deployment of long-haul and middle mile trunks

  10. Discussion Items Prior positive action by states should be further leveraged by ARRA: • Landmark state legislation with statutorily mandated (accelerated) broadband deployment by regulated incumbent local telephone companies • Establishment of outreach & aggregation mechanism (with funding) for pre-existing unserved broadband demand • Aggregation program with statutorily mandated “business case” upon reaching threshold of committed customers • Financial assistance to schools for connectivity, equipment, content, technical assistance ($10M per year) • Statewide mapping and public inventory of services

  11. Discussion Items Prior positive action by states should be considered • Pennsylvania is net contributor to the federal USF at a level of $125 - $135 million annually • Implementation of extensive intrastate carrier access charge reforms at corresponding high cost • As a net contributor to the federal USF, PA already supports deployment of broadband facilities in other states

  12. Discussion Items NTIA Programmatic considerations • Requirement for state plan and mapping as condition precedent to receipt of deployment funds • Importance of State’s Role in project awards: • Endorsement or recommendation by States • Alignment with state plan • NTIA approves State plan and States approve/recommend projects that are aligned with State plan

  13. Discussion Items Funding Determinations; Equitable Distributions to States • ARRA stipulates at least one project award per state • Recommend “per capita” formula for BTOP in event of “per state” distribution • Particular circumstances of states should be taken into consideration

  14. Discussion Items BTOP Program Administration • Consider enlisting assistance of states to administer portions of BTOP program • NTIA approves State plan and States approve/recommend projects that are aligned with State plan • Mutually beneficial arrangement to ensure fulfillment of goals and timelines

  15. Discussion Items Project match considerations • Prior financial investments by States should be given consideration, such as: • Allow statutorily approved rate increases to secure broadband deployment commitments as 20% match required under ARRA • State investment made through state towers or other related infrastructure • Award of state funds which yield aggregated demand and ‘shovel-ready’ projects (BOAF) • Award of state funds under state E-Fund for deployment of broadband networks linking school entities

  16. Discussion Items Wireless broadband deployment • Discussions mostly focused on residential and commercial availability • Recognize emergence of hand-held devices and mobile applications • Important for economic development, public safety, tourism, quality of life

  17. Discussion Items Project Sustainability • ARRA provides initial capital expense allowing deployment of infrastructure • Sustainability of ARRA projects is an essential component of project approvals • Identification of anchor tenants & community partnerships

  18. Discussion Items Competition & Choice • Business case may not always allow for multiple providers and/or multiple broadband access technologies and services, e.g., landline telecommunications, CATV, wireless, broadband over power lines, etc. • Shared or neutral collocation facilities, common infrastructure, and potentially common carriage requirements under pre-existing and applicable federal (e.g., Telecommunications Act of 1996) and state law. • Usage of state infrastructure (towers) as a means of accelerating deployment and extending reach of network

  19. Discussion Items Administrative Considerations • State Procurement & Contracting Mechanisms • Reimbursement of State planning funds

  20. Open Discussion or Questions

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