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2. Advanced Telecom and Broadband Deployment In Arizona Arizona Telecommunications and Information Council Communications Infrastructure Advisory Committee, Governor’s Council On Innovation and Technology

3. Thanks To iLinc Communications Provider of Audio and Web Conferencing for the Arizona Telecom Summit 2007

4. Agenda • Welcome – John Kelly, Moderator • Thanks and Introduction Of iLinc Communications • Purpose of the Summit • Participants, Hosts, Sponsors • Welcome and ATIC Introduction – Mike Keeling, ATIC Chair • Welcome and CIAC Introduction – Galen Updike representing Chris Cummiskey, Chair, CIAC • The Summit Overview – Steve Peters, Summit Coordinator • Telecom in Arizona: Status and Initiatives - Mike Keeling, ATIC Chair, and Ron Schott, Arizona Technology Council • Arizona Telecom Legislation – Mike Keeling

5. 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 Report-Computer Systems Policy Project)

6. Purpose Of The Summit • Like water and roads, advanced telecommunications and broadband Internet services are critical infrastructure for Arizona communities • Many rural and other underserved communities lack the infrastructure to support deployment of these services • The purpose of the Summit is to accelerate deployment of these services to all Arizona communities • The plan is to explore options and leave the Summit with consensus on policies and  implementation plans to remove barriers to the deployment of this critical infrastructure.

7. Participants Invited • Federal, state, local, and tribal elected officials and policy advisors • Chief Information Officers • Telecom service provider executives • Key stakeholder representatives (economic development, education, government, health services, public safety, libraries, homeland security, CIOs, etc)

8. Presented By • Arizona Telecommunications and Information Council • Communications Infrastructure Advisory Committee to GCIT, the  Governor’s Council on Innovation & Technology • In Cooperation With • Arizona Consumers Council • Arizona Association for Economic Development • Arizona Department of Commerce • Arizona Government Information Technology Agency • Arizona Small Business Association

9. Presented By • County Supervisor’s Association of Arizona • Arizona Technology Council • Arizona Telemedicine Program • eLearning System For Arizona Teachers and Students • Greater Arizona eLearning Association • League of Arizona Cities and Towns • Navajo Nation Telecommunications Regulatory Commission • Community Information and Telecommunications Alliance

10. Thanks to Our Sponsors • iLinc Communications • Salt River Project Telecom • Wi-Vod WIreless VOice and Data • Conterra Broadband • Others Pending

11. Summit EventsSteve Peters, Summit Coordinator

12. Summit Events • Pre and Post Briefing Documents on the Summit Web Site • Four Online Pre-Summit Briefing Sessions – Background information, technology overviews, updates on Arizona issues and initiatives, best practices, etc. • One day May 17 Summit event – Mesa Convention Center • Keynote Presentations • Planning and Policy Development Workshops (State Strategic Telecom Plan, Funding mechanisms and strategies, Rights-of-Way access, Local community/Tribal planning and policies, Telecom provider requirements   • Telecom/Technology Expo • Arizona Technology Council After5 Reception, Showcase and Networking Event

13. Arizona Telecommunications And Information Council Michael Keeling, ATIC Chair

14. Arizona Telecommunications and Information Council • Non Profit 501(c)(6) organization engages in initiatives and guides adoption of public policies that enable access to advanced telecommunications services and information technologies • Public and private partners include: • Large and small businesses • Health care, economic development, consumer organizations • Libraries, educational institutions, • Arizona Corporation Commission and legislature, local and state government agencies • Information technology and telecommunications companies

15. ATIC Initiatives • Telecom Planning with CIAC • Strategy Committee • Cyber Security • Arizona Corporation Commission Debates • Arizona Telecommunications Directory • Homeland Security (DHS) I-19 First Responder Wi-Fi Grant • Arizona Telecom Roundtable (2005) and Arizona Telecom Summit 2007 • Town Of Superior Initiative

16. Communications InfrastructureAdvisory Committee Galen Updike, Telecommunications Manager, Government Information Technology Agency

17. Communications Infrastructure Advisory Committee • CIAC is a 21 member Public/Private Committee of the Governor’s Council on Innovation & Technology (GCIT) • 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

18. Governor’ Council On Innovation and Technology • Governor's principal advisory group for innovation and technology charged with developing strategies to: • Enable Arizona to become a global leader in innovation and technology research, development and product creation • Strengthen the Arizona innovation and technology infrastructure (including telecom and capital formation) • Promote technology transfer and business/university partnerships • Create and retain quality jobs in Arizona

19. Telecom in ArizonaStatus and Initiatives Michael Keeling, ATIC Chair

20. Critical Infrastructure In our Networked World affordable broadband Internet and advanced telecommunications services are critical infrastructure to support: • Community development • Critical services such as police and fire • Telemedicine and health care institutions • eLearning for P-20 through life long learning • eGovernment for improved citizen services • 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*

21. What is Broadband • 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 providing a minimum of 1 Mbps

22. Status of Broadband In Arizona • Greater metropolitan areas have an increasing number of affordable basic (200 Kb) and advanced (1 Mbps +) broadband options • Many smaller and rural communities are under-served or have no broadband access. The majority of rural communities now have access to basic broadband last-mile services such as cable modem, DSL, or wireless. Of Arizona’s 225 communities of 500 population or more, 40 have no Broadband availability. • Many rural communities still lack consistent coverage of basic broadband services and they do not have the infrastructure to support advanced (1mps+) broadband deployment.

23. Status of Broadband In Arizona • As of 2006 20% of rural districts have schools with only Dial-up (56k) connection to the Internet • Of the rural communities that have services, many still face middle and last-mile deficits, experiencing much higher service costs, making it unaffordable to end users. In many where Broadband is available, the rates are 2 - 3 times more expensive than rates in Phoenix or Tucson. • An estimated 50% of Arizona citizens in rural communities and a half million in urban communities (totaling about 20% of the State’s population) do not have access to advanced broadband connections • Many rural communities also lack redundancy in order to maintain connectivity in the event of network failure

24. Barriers and Strategies • ATIC and CIAC have identified barriers to deployment of advanced telecommunications services and broadband Internet access to rural and under-served communities • ATIC and CIAC adopted ten strategy and policy recommendations to overcome these barriers.

25. Goals • Accelerate deployment of advanced telecommunications services and affordable broadband Internet access throughout the State. • Develop voice, video and data applications that ride over the infrastructure that will link the Arizona community and support education, economic and community development. • Develop strategies to Bridge the Digital Divide • Support tribes and local communities in development and implementation of technology infrastructure strategies and initiatives.

26. Strategy • The strategy is to remove barriers and develop public policies and market-driven strategies that willencouragecompetition, private-sector investment in, and rapid deploymentof telecom services • Where no market-driven solution can be found, we need to identify ways in which communities and the State can “fill-in” the gaps.

27. Infrastructure Development Deficits • Middle Mile • Interoperability • Redundancy

28. Middle Mile • ATIC and CIAC have been focusing on deployment ofredundantmiddle mile services • Two primary telecom services Last Mile and Middle Mile • Last Mile is the connection between the ISP and end user - businesses, homes, schools, etc. • The Middle Mile is the connections between local communities and the Internet backbone in the metropolitan areas such as Phoenix and Tucson.

29. Middle Mile • If a common middle mile infrastructure is not available, at reasonable rates: • Communities may not be served • Communities or last mile providers must construct their own • Last mile costs and end users rates will be higher

30. Barriers to Broadband Deployment • Lack of Focus, Planning and Coordination • Return on Investment • Access to Rights-of-Way • Funding

31. Barriers To Middle Mile Deployment • Return on Investment: Requires a balance between deployment costs, affordable end user rates, and the length of time for the provider’s ROI (18 - 24 months) • Access to Rights-of-Way: Federal, tribal, state and local Rights-of-Way issues such as multiple jurisdiction permitting, delayed application approvals, and unequal and prohibitive fees • Planning and Coordination: There is no coordinated statewide strategy • We are not leveraging existing investments • Losing out on millions of federal dollars

32. Recommendations • Establish a Telecommunications Infrastructure Advisory Committee under the Governor’s Council on Innovation and Technology • Develop a Broadband Development Authority • Provide Focus, Planning and Coordination • Develop dedicated funding mechanisms and strategies such as an Arizona Broadband Universal Service Fund • Provide support for the development of a Statewide Telecom Strategic Plan that will enable the vision, framework and strategies for the deployment of a statewide telecom infrastructure.  

33. Recommendations • Convene a series of regional and statewide Telecom Roundtables • Provide state support to identify potential funding sources and provide grant writing assistance to help fund state and local telecom infrastructure projects • Implement a strategy to facilitate increased use of the federal E-rate subsidies in the state  • Provide ongoing funding for Community Telecommunications Assessments and Plans to identify community telecom assets, assess their needs, and develop and implement telecom infrastructure strategies and initiatives

34. Recommendations • Adopt an Arizona definition of Broadband to be a minimum of 1Mbps • Encourage access to local, state, federal and tribal rights-of-way   • Monitor legislative actions to ensure that explicit or de facto barriers to municipal participation in Broadband deployment are eliminated. 

35. Communications Infrastructure Advisory Committee Ron Schott, Chair, CIAC Strategic Plan Committee

36. CIAC Four Priorities • State Strategic Telecom Plan • Arizona Broadband Development Authority • Leadership, Planning and Coordination • Funding mechanisms and strategies • Rights-of-Way access • Local community/Tribal planning and policies

37. Major CIAC Accomplishments • Coordinated the 2005 Statewide Network Request For Information (RFI) to better understand the requirements of telecom providers. Responses included barriers, issues, costs, relations between telecom providers, and community solutions • Adopted, and facilitated GCIT approval of, 11 strategy and policy recommendations that provide a framework for CIAC initiatives • Provided an ongoing nexus and forum for discussion of Arizona Broadband initiatives and policy (working closely with ATIC) • Created 3 CIAC Task Forces (State Strategic Plan, Rights-of-Way, Broadband Authority) • Supported Arizona Broadband Initiative Framework Report 2007 by Center for Digital Government - Funded by GITA and CEDC

38. Reports • Background Reports prepared by the GCIT Telecom Infrastructure Subcommittee (now CIAC) • 2005 Statewide Network Request For Information (RFI) • CIAC 2006 Year in Review • Arizona Broadband Initiative Framework Report- Digital Government Funded by the Government Information Technology Agency and the Commerce and Economic Development Commission (CEDC)

39. Arizona Telecom Legislation Michael Keeling, ATIC Chair

40. Arizona Legislation • eLearning System For Arizona Teachers and Students (eSATS) Legislation (Funding for Arizona to utilize and robustly embrace e-Learning best practices within K-12 Education) • ATIC’s SB1060 - Legislation to create an Arizona Broadband Authority and Broadband Universal Service Fund (ABUSF) • Public Financing for Telecom Infrastructure – Submitted by the Commerce and Economic Development Commission(CEDC) and Greater Arizona Development Authority (GADA) Legislation (supported by Commerce Department)

41. * Data Sources • Economic impact of Broadband deployment; in 2003 by Gartner Group; in 2003 by CEBR Ltd. - a British company; and in 2001 by Brookings Institute). • Center for a Sound Economy Report – Broadband deployment impact on Arizona - by Wayne T. Brough, Dec 2003)