Community Planning: Cable TV, Telecom, Wireless & the Future of Local Broadband

Community Planning: Cable TV, Telecom, Wireless & the Future of Local Broadband Developing Confluence through Pre-deployment Assessments & Best Practices. Prepared for: Prepared by: © Municipal Solutions, llc 2007. All Rights Reserved. ARIZONA TELECOMMUNICATIONS AND INFORMATION COUNCIL

Community Planning: CATV, Telecom & the Future of Local Broadband What is Broadband? Data to Voice Before 1876, technology sent single ‘bits’ point to point via the one directional telegraph (Morse Code). In 1875, AGB develops simultaneous telegraph. In 1876, AGB develops the first simultaneous speech device (telephone). © Municipal Solutions, llc 2007. All Rights Reserved.

Community Planning: CATV, Telecom & the Future of Local Broadband What is Broadband? Voice 1888: Friedrich Hertz discovers the first electromagnetic wave. 1895: Guglielmo Marconi invents the wireless telegraph; messages across English Channel. 1901: Transatlantic telegraph transmissions between North America & Europe. 1906: US Weather Service experiments w/ radiotelegraph to speed weather reporting. 1909: Robert Peary announces he’s reached the North Pole. 1941: First use by platoon ships and aircraft occurred during WWI. 1921: First public radio entertainment broadcast in the USA. Wireless Telephones 1973: First portable handset invented by Dr. Martin Cooper, former General Manager of Motorola’s Systems Division. 1977: Cell phones were offered to the US public. 1988: Cell phone electronics standards are established by the Telecommunications Industry, increasing cell phone demand substantially. © Municipal Solutions, llc 2007. All Rights Reserved.

Community Planning: CATV, Telecom & the Future of Local Broadband What is Broadband? • Cable TV • 1948: Technology born in Mahanoy City, PA. • Problem: John Walson. a small appliance store owner had difficulty selling television sets to local residents. Obscured by mountains, clear reception locally was virtually impossible. • Solution: Walson attached an antenna to a large utility pole on top of nearby mountain. Television signals received and transported over twin lead wire to his store. • Outcome: Picture reception , improved with coaxial cable and self-manufactured amplifiers. Television sales soared. • Late 50s: CATV System methodology born in Lansford, PA. • Problem: Multi-family=TV antenna forests. • Solution: • 1. Milton Shapp, (later PA Governor) consolidated multiple antennas for apartment buildings & department stores with master antenna to amplified coax cable. • 2. Robert (Bob) Tarlton, (appliance salesman) took Shapp's system and wired the entire Town of Lansford with coaxial cable and commercially manufactured amplifiers. • Outcome: Innovation. Cable TV quickly spreads the country to remote & rural areas to improve reception of TV network broadcasts. © Municipal Solutions, llc 2007. All Rights Reserved.

Community Planning: CATV, Telecom & the Future of Local Broadband What is Broadband? • 1876: single ‘bits’ point to point. • 2007: billions of bits instantaneously. • Example: shipping a truck full of pencils overnight rather than one pencil at a time. • Broadband = Physics: • Copper, Coax, Wireless & Fiber. • Broadband = use: • - 200Kbps (FCC). • 400Kbps (Video) • 1.5Mbps to 1Gbps (Voice, Video & Data). “Broadband is either a communications technology limitation of which we are most pestered by…either because it is not affordable or is not yet available to us…or it is the best alternative available to us.” ~David Evertsen © Municipal Solutions, llc 2007. All Rights Reserved.

Community Planning: CATV, Telecom & the Future of Local Broadband Positive Affects of Broadband? • Education Electronic banking • Public Safety • Distance learning & research • Entertainment • Employment • E-Commerce • Purchasing / Supplying • Telemedicine • Video-conferencing • Weather & Travel • Premises security • E-Government • News • Premises Security What communications technology limitation is your organization most pestered by not having, is not affordable or is not yet available? © Municipal Solutions, llc 2007. All Rights Reserved.

Community Planning: CATV, Telecom & the Future of Local Broadband Convergence of Platforms & Providers • Telecommunications Act of 1996. • Four (4) Play: Voice, Video, Data & Mobility. • Multiple platforms & Multiple Service Providers © Municipal Solutions, llc 2007. All Rights Reserved.

Community Planning: CATV, Telecom & the Future of Local Broadband BWA WiMAX Wi-Fi Broadband Mobility Cable/DSL Typical User Data Rate Satellite Broadband 3G Proprietary Bluetooth 2.5G Narrowband Dial Up 1G Local Area Fixed Metro Area Mobile Wide Area Convergence of “Wireless” © Municipal Solutions, llc 2007. All Rights Reserved.

Community Planning: CATV, Telecom & the Future of Local Broadband Should the Public Sector get Involved? • Senator John Kyl (AZ) “What is your opinion about Philadelphia?” (The Role of Municipal Government) • Sen. John Ensign (NV) vs Sen. John McCain (AZ) (Private Sector vs Public Sector) • Municipal Services: Solid Waste? Water? Who’s right? “IT DEPENDS”. © Municipal Solutions, llc 2007. All Rights Reserved.

Community Planning: CATV, Telecom & the Future of Local Broadband Why do public agencies get involved? Some justifications include: Improving access to City services, E-Government. Addressing unique local conditionssuch as geography, economics, fiscal issues. Improving poor service deliveryadversely affecting local business retention, attraction & Quality of Life. Addressing a variety of market creep or market failure. The Mission of the Public Sector: Education. Health. Safety. Welfare. © Municipal Solutions, llc 2007. All Rights Reserved.

Community Planning: CATV, Telecom & the Future of Local Broadband The Solution for Local Broadband Development: Confluence & Concourse. • Confluence: • a place where things merge or flow together (especially rivers). • Concourse: • a coming together of people © Municipal Solutions, llc 2007. All Rights Reserved.

Community Planning: CATV, Telecom & the Future of Local Broadband Yes Yes No No Yes No No Yes Yes Finding a balance between stakeholders & alternatives. Is a broadband service essential? Stop. Focus on other priorities. Are current commercial offerings and capabilities sufficient to address local needs? (Phase I-IV) Stop. Focus on other priorities. Will the market respond? Stop. Focus on other priorities. Check legal limits, seek alternatives. Is municipal entry allowed? DETERMINE YOUR AGENCYS ROLE Catalyst Enabler Facilitator Service Retailer Source: ICMA IQ Service Report Vol 32, No 5, May, 2000 Develop Action Plan & Enabling Policy? (Phase V) Sources: Municipal Solutions, 2006. Modified from UTOPIA, 2005. © Municipal Solutions, llc 2007. All Rights Reserved.

Community Planning: CATV, Telecom & the Future of Local Broadband Communications Master Planning Steps I:Infrastructure & Service Assessment. II:Business & Residential Survey. III: Public-Agency Summit. IV: Documents & Existing Plans Review. V:Strategic Policy & Action Plan. © Municipal Solutions, llc 2007. All Rights Reserved.

Community Planning: CATV, Telecom & the Future of Local Broadband Statewide Fiber Service Areas I:Infrastructure & Service Assessment. Source: GITA, 2005. Source: GITA, 2005. © Municipal Solutions, llc 2007. All Rights Reserved.

Community Planning: CATV, Telecom & the Future of Local Broadband Regional Fiber Private Infrastructure & Service Areas Qwest (+DSL) Cox & APS I:Infrastructure & Service Assessment. (Employment Corridor highlighted in Red) Source: Qwest Communications Inc / Municipal Solutions, 2006. Source: GeoTel / Municipal Solutions, 2006. © Municipal Solutions, llc 2007. All Rights Reserved.

Community Planning: CATV, Telecom & the Future of Local Broadband Cable TV & Telecom Transmission & Distribution Lines (Areas lacking broadband infrastructure are in red) I:Infrastructure & Service Assessment. Source: Qwest Communications Inc / Municipal Solutions, 2006. © Municipal Solutions, llc 2007. All Rights Reserved.

Community Planning: CATV, Telecom & the Future of Local Broadband Remote Terminals with VDSL Service Capabilities and Service Areas (Areas lacking broadband infrastructure are in red) I:Infrastructure & Service Assessment. Source: Qwest Communications Inc / Municipal Solutions, 2006. © Municipal Solutions, llc 2007. All Rights Reserved.

Community Planning: CATV, Telecom & the Future of Local Broadband II: Business & Residential Surveys. Methodology: • Approved empirical and statistical sampling methods. • Random & telephone. • Minimum of 400 completed. • Average 65% completion rate. • 95% confidence level. • Results can be geo-referenced. • Sample of Results: • - 34.7% of residents currently telecommute / work from home. • - 10% indicated they would consider telecommuting if broadband services were available at home. • 37% of residents said they would probably subscribe to a high-speed data service if pricing and terms were acceptable; 8% would subscribe right away, and 6% would within 6 to 12 months. • - 93% of residents have a computer in their home, 97% of which have internet access. • - 29% of residents have their computers networked, 55% using Wi-Fi. © Municipal Solutions, llc 2007. All Rights Reserved.

Community Planning: CATV, Telecom & the Future of Local Broadband Internet Usage by Type Satisfaction with Local Services by Type II:Business & Residential Surveys. • Would City Involvement be Supported? • 89% of all residents surveyed support a formal commitment from the City of Goodyear to improve local high-speed communications capabilities. © Municipal Solutions, llc 2007. All Rights Reserved.

Community Planning: CATV, Telecom & the Future of Local Broadband ATTENDEES & PARTICIPANTS: Arizona Department of Commerce / GADA Arizona State University – East City of Chandler City of Coolidge City of Mesa City of Tempe Town of Florence Town of Gilbert Town of Queen Creek Graham County Maricopa Association of Governments (MAG) Maricopa County Engineering Department Maricopa County Dept of Transportation Pinal County Queen Creek Unified School District Salt River Project State of Arizona Williams Gateway Airport III: Public-Agency Summit. © Municipal Solutions, llc 2007. All Rights Reserved.

Community Planning: CATV, Telecom & the Future of Local Broadband III: Public-Agency Summit Outcomes. “High speed communications capacity is not adequately available to each agency at the level it is needed, and given the growing demand by telemedicine, e-government, education, and health, welfare and public safety, agency representatives saw this disparity getting worse rather than better.” ”Many municipalities and other public agencies are not adequately planning for telecommunications capacity.” “Coordination and communication of agency telecommunications capacity is lacking at every level of government. It is crucial that ongoing interagency communication occurs to prevent duplication of effort and ensure intelligent planning.” “Massive outages are too frequent…the best thing that could happen is for the Qwest C.O. to burn down.” “Wi-Fi is not a ‘solve-all’ solution that many companies claim, but it is an effective tool in specific applications and uses.” “Public agencies are not adequately planning for telecommunications capacity. Poor interdepartmental and intra-agency planning of telecommunications can have tremendous economic consequences locally & regionally.” © Municipal Solutions, llc 2007. All Rights Reserved.

Community Planning: CATV, Telecom & the Future of Local Broadband Studies MAG Regional Community Network (RCN) Study (2003) Wireless Antenna Siting Study (August 1998) Community Survey (2006) 2005 Impact Fee Study Codes, Licenses & Ordinances Zoning Ordinance: Article 4 Engineering Standards & Standard Details Construction Permit Fees Dimension / Cox Cable License Agreement Development / Engineering / Planning Guides 2003 – 2013 General Plan (November 2003) Employment Corridor Plan Information Technology Strategic Plan (January 2006) FY2006/2007 Budget 5-year Capital Improvements Program (Utility & non-Utility) Technology Assessment & Strategic Plan (2002) IV: Documents & Existing Plans Review. © Municipal Solutions, llc 2007. All Rights Reserved.

Community Planning: CATV, Telecom & the Future of Local Broadband ACTION ITEMS 1. Integrate Telecommunications Plan items into the City Manager’s Work Plan, Budget and Capital. Improvements Planning. 2. Design and execute a Multi-Agency Intergovernmental Agreement (IGA). 3. Construct a City-wide Internet Network (Fiber & Wi-Fi) to network public facilities for public agency use; design for limited commercial use Wi-Fi (immediate). Fiber (0-5 years). 4. Review and revise Right-of-Way Engineering & Construction Standards, Building Code & Zoning. 5. Further Evaluation of Existing Economic Development Strategies, General Plans and related Documents. 6. Technology Fair or Seminars on the benefits of enhanced electronic or E-government services. POLICY RECOMMENDATIONS 1. Adopt a Telecommunications Policy. 2. Determine a formal role for City efforts to advance telecommunications. 3. Create a "Competitive Local Climate" using the City’s unique regulatory authority. 4. Continue a presence / influence on Federal and State Policy involving Cable TV, Telecommunications and municipal authority. 5. Integrate and coordinate all departments in areas where Advanced Telecommunications issues cross departmental boundaries and functions. 6. Integrate and coordinate City efforts with all other public agencies in areas where Advanced Telecommunications services cross agency jurisdictional boundaries. (Requires IGA / MOU). V. Strategic Telecommunications Plans © Municipal Solutions, llc 2007. All Rights Reserved.

Community Planning: CATV, Telecom & the Future of Local Broadband Yes Yes No No Yes No No Yes Yes Is a broadband service essential? Stop. Focus on other priorities. Reaching Confluence… Are current commercial offerings and capabilities sufficient to address local needs? (Phase I-IV) Stop. Focus on other priorities. Will the market respond? Stop. Focus on other priorities. Check legal limits, seek alternatives. Is municipal entry allowed? ALTERNATIVE ROLES: Catalyst Enabler Facilitator Service Retailer Source: ICMA IQ Service Report Vol 32, No 5, May, 2000. Develop Action Plan & Enabling Policy? (Phase V) Sources: Municipal Solutions, 2006. Modified from UTOPIA, 2005. © Municipal Solutions, llc 2007. All Rights Reserved.

Community Planning: CATV, Telecom & the Future of Local Broadband Municipal Leadership Alternatives • Catalyst: • City prods private-sector entities to increase public awareness of their services and to provide greater geographic access. City uses its airport, business park or industrial park to encourage private companies to provide high-speed access. • Enabler / Facilitator: • City is more ambitious using its government resources to help the private sector expand / Improve services. City avoids getting “into the business”. Common examples include: • Co-location, less-constraining Plans Review Process, pre-approved zoning, streamlined permitting for trenching for fiber and cable emplacement & aggregation of multiple government-agency needs (public I-Net). • Infrastructure Provider: • City modifies building code & construction / engineering standards. • City requires fiber-to-the-home and smart building construction. • City require new developments to place conduit in the public right of way for lease, open access and level playing field. • Service Retailer: • City constructs its own fiber / Wi-Fi network and offers a competitive service. Source: Broadband Access: Local Government Roles, IQ Service Report Vol 32, No 5, International City / County Management Association, May, 2000. © Municipal Solutions, llc 2007. All Rights Reserved.

Community Planning: CATV, Telecom & the Future of Local Broadband Examples Buckeye, Az Maricopa, Az Palm Bay, Fl Boise, Id Flagstaff, Az Queen Creek, Az Loma Linda, Ca San Francisco, Ca Philadelphia, Pa Fort Wayne, In Who dictates broadband in your community? © Municipal Solutions, llc 2007. All Rights Reserved.

Community Planning: CATV, Telecom & the Future of Local Broadband 4 Cases in Arizona • Flagstaff, AZ (fs) – Pop. 55,000. 65 sq/mi. University town. Elevation, Topography, Tree Canopy, Two pre-existing Wi-Fi networks (NAU, CoF), service disparity, new compelling demand via public agency aggregation. • Queen Creek, AZ (nfs) – Pop. 26,000. 26sq/mi. Urban-Rural fringe, low-density residential (1 du/acre), growth 16%, 40% access to broadband, market unable to meet local demand (ROI), high telecommuting & quality of life, $60 million new road construction & fiber / conduit masterplan. • Superior, AZ (nfs) – Pop. 2,000. 1.9sq/mi. Old west mining economy, demographic & political challenges, lack of backhaul alternative, $450,000 multi-agency grants and in-kind support. • Goodyear, AZ (fs) – Pop. 46,000. 16% growth, 107 sq/mi. Lack of service options, employment corridor devoid, Lack of public office space = high lease of private offices & high mobility of operations… © Municipal Solutions, llc 2007. All Rights Reserved.

Community Planning: CATV, Telecom & the Future of Local Broadband Status • Flagstaff, AZ (fs) Priority: Multi-agency Public I-Net to be constructed by local cable provider. Wi-Fi umbrella, multi-agency, integration & interoperability. Status: Competitive Wi-Fi RFP Scope underway. • Queen Creek, AZ (nfs) Priority:Facilitator ofcommercial services via FTTH & Wi-Fi Mesh. Status: Competitive Fiber & Wi-Fi Design RFQs issued. Consultants selected. Ownership: Town. Operator: Vendor. Service: Commercial. • Superior, AZ (nfs)Priority:Wi-Fi Service Provider. Non-mesh design. Status:RFCQ issued to State Contractors only. Construction Phase. Ownership: Town-owned, Operated by contractor (undetermined). • Goodyear, AZ (fs)Priority: Undetermined. Status: RFP issued for design of government / private network masterplan. fs= Full-service community nfs=Not Full-service © Municipal Solutions, llc 2007. All Rights Reserved.

Community Planning: CATV, Telecom & the Future of Local Broadband Successful Municipal Networks depend on… Assessments. • SWOT Analysis. • Current Infrastructure & Services. • Public & Private Broadband Limitations & Needs. • Potential for Multi-agency Aggregation. Articulation. • Define Priorities, Mission, Vision, Services, Objectives, Resources & Participants. • Defining the network. Function, Design, Cost, Ownership & Operation. (Example: WISP vs. Mesh…co-existence & impact on business models). • Writing Accurate & Effective RFPs. Administration. • Vendor Selection & Background Pro Forma • Project Management & Operations. © Municipal Solutions, llc 2007. All Rights Reserved.

Community Planning: CATV, Telecom & the Future of Local Broadband What you can do. • Take a leadership role in your community by creating confluenceand concourse. • Execute a Communications Master Planning process. • Develop and adopt a Communications Policy. • Facilitate an open dialogue where information is not single-source driven. • Evolve all initiatives effectively. • Actively support legislation that preserves local authority and regulatory control over rights-of-way. • Educate yourselves and your constituents on the products, services and alternatives and what outcomes are to be expected (example: Wi-Fi). © Municipal Solutions, llc 2007. All Rights Reserved.

Community Planning: CATV, Telecom & the Future of Local Broadband Become a sponsor and active member of the Arizona Telecommunications & Information Council (501-c-6) http://www.arizonatele.com/atic/ © Municipal Solutions, llc 2007. All Rights Reserved. ARIZONA TELECOMMUNICATIONS AND INFORMATION COUNCIL

Community Planning: CATV, Telecom & the Future of Local Broadband Additional Info… • FTC Sept 2006 Staff Report on Municipal Wi-Fi & Broadband: http://www.ftc.gov/os/2006/10/V060021municipalprovwirelessinternet.pdf • Measuring Broadband’s Economic Impact, Lehr, Osorio, Gillett & Sirbu, Massachusetts Institute of Technology, Revised October 4, 2005, 36 pp. • Telecommunications: Local Options, Local Action, ICMA Special Report, Herbst, Ladd, Mendoza, Buck, Moore, and Fredrickson & Byron, 1998. • ICMA IQ Report, Technology-based Economic Development, Vol. 34, No. 5, May 2002. • The Broadband Paper: The Importance of Swift and Better Use, Ministry of Economic Affairs, Directorate – General Telecommunications & Post, The Hague, Netherlands. © Municipal Solutions, llc 2007. All Rights Reserved.

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Community Planning: Cable TV, Telecom, Wireless & the Future of Local Broadband