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MBDA Pipeline Review

MBDA Pipeline Review. MBDA will help Michigan become the leading broadband state. MBDA Strategy. Purpose. MBDA Vision. Outcome. Service Provider Initiative: Use low cost capital and development expertise to accelerate broadband service deployment.

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MBDA Pipeline Review

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  1. MBDA Pipeline Review

  2. MBDA will help Michigan become the leading broadband state MBDA Strategy Purpose MBDA Vision Outcome Service Provider Initiative: Use low cost capital and development expertise to accelerate broadband service deployment “The purpose of the Broadband Development Act is to assure broadband service for the benefit of all the people of this state” – Michigan Legislature To make Michigan the leading broadband state in the nation Close digital divide Public Sector Initiative: Make public sector a broadband leader through low cost capital and coordination/facilitation Business Usage Initiative: Increase usage in the business community through low cost capital and development expertise MBDA

  3. Each initiative will help Michigan be #1 Public good Deployment Usage MBDA Strategy Expands broadband to underserved areas Fills in gaps and increases competition Lowers price to end-user Service Provider Initiative: Use low cost capital and development expertise to accelerate broadband service deployment Reduces costs for gov’t and other non-for-profits Increased usage enhances business case for service providers Government, schools and health care serve as model for rest of state Public Sector Initiative: Make the public sector a broadband leader through low cost capital and coordination/facilitation Increases organizational efficiency Increased usage enhances business case for service providers Increases effectiveness and competitiveness of Michigan businesses Business Usage Initiative: Increase usage in the business community through low cost capital and development expertise MBDA

  4. Service Provider Initiative Service Provider Initiative: Use low cost capital and development expertise to accelerate broadband service deployment Current Pipeline Project Description Geography Deal size ($M) Fixed wireless trial SE Mich $20-40M Channels Targeted outreach to major service providers (e.g. Sprint, Comcast, SBC, Charter) Targeted outreach to critical new players (e.g. Cometa) Open Invitation to Apply through Web DSL last-mile SE Mich $12M Fiber Backbone UP/N. LP $4 ($8) M DSL last-mile Mid-Mich $1.5M DSL last-mile statewide >$1M IP last-mile Detroit $0.8M Wireless last mile Mid-Mich $0.4M Learning to date Development assistance and deal structuring are critical to reduce risk Many service providers have weak credit and therefore access to capital is currently constrained Creditworthy players have strong interest in refinancing to free-up capital Wireless last-mile Thumb $0.3M Wireless last-mile SC Mich $0.3M Wireless last-mile SW Mich N/A wireless last-mile Bay City / Saginaw N/A Total $40-60M MBDA

  5. Public Sector Initiative Public Sector Initiative: Make the public sector a broadband leader through low cost capital and coordination/facilitation Current Pipeline Targets Project Description Geography Deal size ($M) State Enterprise IT Equipment Statewide $30M Channels Leverage relationships throughout State Government (e.g. Judiciary, Secretary of State, MEDC) Lead/Coordinate Michigan government efforts to close digital divide County/ISD Public safety network West Michigan $4M Dept of Natural Resources Licensing kiosks Statewide $3-30M Library of Michigan Electronic card catalog Statewide $5-25M Court of Appeals E-filing Statewide $2-10M Learning to date IT budgets are insufficient to fund critical new projects Some agencies lack expertise and manpower to develop projects Appropriations risk is not unacceptable City Gov’t E-gov’t S.E. Michigan >$1M County Gov’t Econ. Dev’t JV S.E. Michigan >$20M OneEconomy Connect schools and low-income housing Statewide TBD Total $65-120M MBDA

  6. Business Usage Initiative Business Usage Initiative: Increase usage in the business community through low cost capital and development expertise Current Pipeline Targets Project Description Geography Deal size ($M) Health System IT systems SE Mich $40-50M • Channels • JV program with major system integrators (e.g. IBM, Accenture, EDS) targeting key sectors: • Auto, life sciences/healthcare, finance, local government Health System IT systems Statewide $20-40M Developer Data Center Lansing $20-30M Developer Data center Ann Arbor $18M Detroit Chamber of Commerce Wireless pilot S.E. Michigan $1M+ Learning to date Ability of major system integrators (Accenture, IBM, EDS) to develop and sell upgrade projects is impacted by internal budget cuts Customers are looking for alternative approaches to financing Internet technology upgrades Total $88-139M MBDA

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