Revenue-Generating Revenue-Generating Best Practices Best Practices

and and Lessons Learned:Lessons Learned:

Toward a Sustainable Toward a Sustainable Broadband Model by Broadband Model by

U.S. StatesU.S. StatesDeborah Dupée, MBA, PresidentDeborah Dupée, MBA, PresidentAdvanced TechSystems, LLC Advanced TechSystems, LLC

ATIC Board of Directors ATIC Board of Directors ATIC Public Meeting June 19, ATIC Public Meeting June 19,

2008 _ Rev 12008 _ Rev 1

BP: Government Leverages Public BP: Government Leverages Public Funds for Infrastructure: Funds for Infrastructure:

Broadband/Service ProvidersBroadband/Service Providers Public funds used for Public funds used for Distribution Systems Distribution Systems

InfrastructureInfrastructure: Lease to Private Sector for : Lease to Private Sector for State Recurring RevenueState Recurring Revenue

Vermont: Vermont Telecom Authority Vermont: Vermont Telecom Authority propose Cell Towers Infrastructure, 2008:propose Cell Towers Infrastructure, 2008: $40M bonds to leverage $200M in private sector $40M bonds to leverage $200M in private sector

investment; investment; Infrastructure leased to Service Providers/wireless Infrastructure leased to Service Providers/wireless

collocation, collocation, Revenue from services over network for recurring Revenue from services over network for recurring

revenue, payback bond. Create a Sustainable revenue, payback bond. Create a Sustainable Model.Model.

Deborah Dupée, MBA, ATS ATIC Public Meeting Rev 1 June Deborah Dupée, MBA, ATS ATIC Public Meeting Rev 1 June 19, 200819, 2008

BP: Government Leverages Public BP: Government Leverages Public Funds for Funds for

Infrastructure/Broadband Service Infrastructure/Broadband Service ProvidersProviders

Public funds used for creating State Public funds used for creating State Distribution Systems Infrastructure Distribution Systems Infrastructure AssetsAssets: Lease to Private Sector for State Recurring Revenue: Lease to Private Sector for State Recurring Revenue

MA Broadband Initiative, 2007: created MA Broadband Institute to “…make MA Broadband Initiative, 2007: created MA Broadband Institute to “…make strategic public investments with objective of serving all unserved communities strategic public investments with objective of serving all unserved communities by 2010.”by 2010.” ““Investing in long-lived elements of broadband infrastructure, such as Investing in long-lived elements of broadband infrastructure, such as

conduits, fiber, andconduits, fiber, and towers, does not subject the Commonwealth to risk of towers, does not subject the Commonwealth to risk of technology obsolescence. Considered on a lifecycle cost basis, broadband technology obsolescence. Considered on a lifecycle cost basis, broadband assets are very inexpensive compared to more traditional publicly funded assets are very inexpensive compared to more traditional publicly funded infrastructures. Fiber costs much less than highways but provides similar infrastructures. Fiber costs much less than highways but provides similar economic benefits.” economic benefits.”

$25M Bond for State MA Broadband Incentive Fund, “… directed to leverage $25M Bond for State MA Broadband Incentive Fund, “… directed to leverage private sector and federal investment by financing the construction and private sector and federal investment by financing the construction and acquisition of broadband infrastructureacquisition of broadband infrastructure, such as fiber and towers, to , such as fiber and towers, to promote the development and deployment of broadband access.”promote the development and deployment of broadband access.”

MA Broadband Institution to award projects to private/public organizations, MA Broadband Institution to award projects to private/public organizations, Lease Conduits, Towers to fiber, copper, cable providers to connect towersLease Conduits, Towers to fiber, copper, cable providers to connect towers

Towers for wireless: Lease cell site collocations to private wireless providersTowers for wireless: Lease cell site collocations to private wireless providers Source: Source: http://masstech.org/broadband/legislation/packet.htmlhttp://masstech.org/broadband/legislation/packet.html

Deborah Dupée, MBA, ATS ATIC Public Meeting Rev 1 June Deborah Dupée, MBA, ATS ATIC Public Meeting Rev 1 June 19, 200819, 2008

Infrastructure: Towers ExamplesInfrastructure: Towers Examples

Left: “Camouflaged” single cell site monopole as Left: “Camouflaged” single cell site monopole as Palm, called MonoPalm, located in Tucson, AZ. Palm, called MonoPalm, located in Tucson, AZ. (Wikipedia)(Wikipedia)

Right: Two cell sites on single mast. (Wikipedia)Right: Two cell sites on single mast. (Wikipedia) Cell towers connected by fiber, copper, cable Cell towers connected by fiber, copper, cable

providers.providers.Deborah Dupée, MBA, ATS ATIC Public Meeting Rev 1 June Deborah Dupée, MBA, ATS ATIC Public Meeting Rev 1 June

19, 200819, 2008

BP: Government Leverages Public BP: Government Leverages Public Funds to Spur Economic Funds to Spur Economic

Development/BroadbandDevelopment/Broadband e-North Carolina Authority (e-NC) e-North Carolina Authority (e-NC)

e-Communities, TeleCenters promoting e-Communities, TeleCenters promoting Economic Development with demand for Economic Development with demand for Broadband in Rural NC.Broadband in Rural NC.

e-NC: Consulting Services with e-Communities, e-NC: Consulting Services with e-Communities, TeleCenters, Other StatesTeleCenters, Other States

2001- 2006: Valuable Results $9,966,760 leveraged by the e-NC Authority 1,190 new jobs created 20,533 technical/business clients Source: http://www.calink.ca.gov/pdf/e-nc.pdf

Deborah Dupée, MBA, ATS ATIC Public Meeting Rev 1 June Deborah Dupée, MBA, ATS ATIC Public Meeting Rev 1 June 19, 200819, 2008

BP: Government Leverages Public BP: Government Leverages Public Funds to Spur Economic Funds to Spur Economic

Development/BroadbandDevelopment/Broadband State agencies provide services to other State agencies provide services to other

agencies, private groups as “Resource agencies, private groups as “Resource Recovery”/”Profit Center”Recovery”/”Profit Center”

Tennessee State GIS Dept provides GIS services: Tennessee State GIS Dept provides GIS services: State Agencies use to create base mapsState Agencies use to create base maps Maps for Broadband: Connected Tennessee Maps for Broadband: Connected Tennessee

using base GIS maps for broadband Mapping.using base GIS maps for broadband Mapping.

Deborah Dupée, MBA, ATS ATIC Public Meeting Rev 1 June Deborah Dupée, MBA, ATS ATIC Public Meeting Rev 1 June 19, 200819, 2008

BP: State Broadband Task Force: BP: State Broadband Task Force: Diverse Community Membership Diverse Community Membership

Promotes CooperationPromotes Cooperation CA Broadband Task ForceCA Broadband Task Force Members Members

Include: Include: Service Providers (Telcos, Cable)Service Providers (Telcos, Cable) Government OfficialsGovernment Officials Business Execs Business Execs Legislators Legislators University Leaders University Leaders K-12 Educators OrganizationsK-12 Educators Organizations

Cooperation of all members reinforced Cooperation of all members reinforced by group goalsby group goals

Deborah Dupée, MBA, ATS ATIC Public Meeting Rev 1 June Deborah Dupée, MBA, ATS ATIC Public Meeting Rev 1 June 19, 200819, 2008

BP: State Broadband Task Force: BP: State Broadband Task Force: Diverse Community Membership Diverse Community Membership

Promotes CooperationPromotes Cooperation

Deborah Deborah Dupée, MBA, ATS ATIC Public Meeting Rev 1 June Dupée, MBA, ATS ATIC Public Meeting Rev 1 June 1919, 2008, 2008

BP: State Leverages Mergers for BP: State Leverages Mergers for Broadband & Economic DevelopmentBroadband & Economic Development

California Emerging Technology FundCalifornia Emerging Technology Fund for Broadband for Broadband Deployment in “underserved”/unserved areas, Education and Health. Deployment in “underserved”/unserved areas, Education and Health. “…“…fund is aimed at building those last mile connections that are the hardest to reach, and tend to be uneconomical for the private sector to serve... Communities with below average adoption rates primarily include low-income households, ethnic minority communities, disabled citizens, seniors, small businesses, and rural or high-cost geographic areas…deployment of broadband facilities to bring critical advanced services to high cost and rural areas, such as telemedicine and online education.”

Created by CPUC “...Created by CPUC “...committed to 100 percent (CA) access in the next five years...”, upon Mergers of Verizon/MCI and SBC/AT&T in Mergers of Verizon/MCI and SBC/AT&T in Nov. 2005Nov. 2005

$60M Seed Fund from SBC ($9M/yr/5yrs) & Verizon/MCI funding $60M Seed Fund from SBC ($9M/yr/5yrs) & Verizon/MCI funding ($3M/yr/5yr) To be matched by other funds (private/public) for total ($3M/yr/5yr) To be matched by other funds (private/public) for total $100M over 5 years. “…$100M over 5 years. “…It won’t replace private sector investment – it will supplement it…it is the intent of the PUC that broadband facilities funded by the CETF would be owned and operated by private corporations, non-governmental organizations (such as universities or health facilities), or local governments. Source: Source: http://www.caltelassn.com/Reports06/CETF/puc111805.pdfhttp://www.caltelassn.com/Reports06/CETF/puc111805.pdf

Deborah Dupée, MBA, ATS ATIC Public Meeting Rev 1 June Deborah Dupée, MBA, ATS ATIC Public Meeting Rev 1 June 19, 200819, 2008

Deborah Deborah Dupée, MBA, ATS ATIC Public Meeting Rev 1 JuneDupée, MBA, ATS ATIC Public Meeting Rev 1 June

19, 200819, 2008

BP: State Leverages Mergers for BP: State Leverages Mergers for Broadband & Economic DevelopmentBroadband & Economic Development

Some Broadband & Economic Lessons Some Broadband & Economic Lessons LearnedLearned

States need – and Programs, Service Providers meet - States need – and Programs, Service Providers meet - Goals, measurable Objectives and Implementation Goals, measurable Objectives and Implementation methods, Reporting Methods, Metrics for best methods, Reporting Methods, Metrics for best practices (Key Performance Indicators/KPIs)practices (Key Performance Indicators/KPIs)

KY Gov. declared in April 2008 for Connect Kentucky KY Gov. declared in April 2008 for Connect Kentucky funding: “…specifically identifying any services to be funding: “…specifically identifying any services to be rendered to the state (and) providing for any rendered to the state (and) providing for any oversight, control or performance measures relative to oversight, control or performance measures relative to the services being rendered…, consider the program the services being rendered…, consider the program needs related to … the Broadband initiative…” needs related to … the Broadband initiative…” Source: Source:

http://www.publicknowledge.org/pdf/20080414164528021.pdfhttp://www.publicknowledge.org/pdf/20080414164528021.pdf

Deborah Dupée, MBA, ATS ATIC Public Meeting Rev 1 June Deborah Dupée, MBA, ATS ATIC Public Meeting Rev 1 June 19, 200819, 2008

Some Broadband & Economic Lessons Some Broadband & Economic Lessons LearnedLearned

Using Geographic Information Systems (GIS) Using Geographic Information Systems (GIS) mapping is important for Broadband mapping is important for Broadband tracking/Availability/Adoption tracking/Availability/Adoption

Massachusetts Broadband Initiative used manual Massachusetts Broadband Initiative used manual methods for initial maps, which will be converted methods for initial maps, which will be converted to GIS for future mapping to replicate, to GIS for future mapping to replicate, substantiate data and create base maps for substantiate data and create base maps for future Broadband projects.future Broadband projects.

Deborah Dupée, MBA, ATS ATIC Public Meeting Rev 1 June Deborah Dupée, MBA, ATS ATIC Public Meeting Rev 1 June 19, 200819, 2008