Reducing the Cost of A Gigabit Network In Your Community

1. Reducing the Cost of A Gigabit Network In Your Community FCC Workshop on the Gigabit City Challenge Heather Burnett Gold President, FTTH Council Americas March 27, 2012

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3. Major Components of Network Costs Many of these costs are directly impacted by the Community itself • Capital Costs • Construction • Network Equipment • Fees and other (i.e. land and buildings, legal costs) • Funding • Operating costs • Operating and Maintenance • Acquisition of Video Content • Backhaul • Franchise Fees

4. Community Inventory of Assets • Communities should leverage assets that are readily available, obtainable and valuable, whichwill reduce the overall costs • The first step is to create an inventory of such assets, which can include those that belong to the community or that the community can influence • Count both physical assets and “soft” assets which can reduce development costs and build awareness • Civic groups • Educational institutions • IT/GIS professionals

5. Examples of Community Assets Franchise Agreements/Rights of Way – offer favorable terms and expedite/reduce cost of conduit placement Permitting/Construction Rules - provide expedited treatment Municipally owned utilities – assets, customer base, back office operations can be leveraged for partnerships Land/Buildings Existing mapping (GIS) resources Ongoing or pending local and or state capital projects – can tie in fiber builds to water, road construction etc Existing vendor relationships – leveraged to provide enhanced or expanded services Ongoing/planned first responder communications upgrades – for economies of scale IT professionals Educational institutions – sources of student labor and expertise Civic groups/volunteers – source of support and labor for community oriented activities

6. Examples of How the Federal Government Can Reduce Costs • Federal Communications Commission • Pole Attachments • Access to Video Programming/Retransmission • Funding in certain situations (USF: CAF, eRate, Rural Health) • Establish Best Practices • Other Current/Potential Federal Activities • Access to Rights of Way on Federal lands • Funding in certain situations (RUS, EDA) • Access to Federal buildings (GSA) • Collaboration with communities when Federal bandwidth upgrades are considered (GSA)

7. Examples of State Broadband Leadership: Models for Federal Coordination? • Minnesota • Implement the state’s infrastructure development program • Provide consultation to (local) governments in connection with broadband projects • Encourage public-private partnerships • Monitor the broadband development efforts of other states and at the federal level • Serve as the “information clearinghouse” for federal programs • DoT to maintain a “fiber collaboration” database on its website to provide broadband providers with advance notice of upcoming DoT construction projects.

8. Examples of State Broadband Leadership: Models for Federal Coordination? • Wisconsin – Playbook for Broadband Progress • Purpose is to establish "specific replicable initiatives and actions that: • (1) are realistic and possible within available resources; • (2) have enough consensus to be successfully implemented; and • (3) are consistent with the needs of Wisconsin.” • Identify barriers preventing the leasing of available space on government-owned towers and other government-owned facilities to private broadband providers. • Streamline leasing through agency coordination, rule changes, or possibly through legislation • Creation of a information database to facilitate access to appropriate government-owned towers and facilities • Suggests that the state "explore" targeted tax incentives to encourage broadband expansion.

9. Want/Need More Information? Join Us In KC! (http://www.ftthcouncil.org/p/cm/ld/fid=71