Revenue-Generating Best Practices & Lessons Learned Atic Public Meeting Rev1 21june08

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Best Practices and Lessons Learned from other States Broadband Policies: DDupée, MBA, Presentation for Arizona Telecom and Information Council (ATIC) Public Meeting, June 20, 2008, from my work with GIS Broadband Assessment Study with Arizona State Government and Data Site Consortium.

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Revenue-Generating Best Practices & Lessons Learned Atic Public Meeting Rev1 21june08

  1. 1. Revenue-Generating Best Practices and Lessons Learned: Toward a Sustainable Broadband Model by U.S. States Deborah Dupée, MBA, President Advanced TechSystems, LLC ATIC Board of Directors ATIC Public Meeting June 19, 2008 _ Rev 1
  2. 2. BP: Government Leverages Public Funds for Infrastructure: Broadband/Service Providers <ul><li>Public funds used for Distribution Systems Infrastructure : Lease to Private Sector for State Recurring Revenue </li></ul><ul><li>Vermont: Vermont Telecom Authority propose Cell Towers Infrastructure, 2008: </li></ul><ul><ul><li>$40M bonds to leverage $200M in private sector investment; </li></ul></ul><ul><ul><li>Infrastructure leased to Service Providers/wireless collocation, </li></ul></ul><ul><ul><li>Revenue from services over network for recurring revenue, payback bond. Create a Sustainable Model. </li></ul></ul>Deborah Dupée, MBA, ATS ATIC Public Meeting Rev 1 June 19, 2008
  3. 3. BP: Government Leverages Public Funds for Infrastructure/Broadband Service Providers <ul><li>Public funds used for creating State Distribution Systems Infrastructure Assets : Lease to Private Sector for State Recurring Revenue </li></ul><ul><li>MA Broadband Initiative, 2007: created MA Broadband Institute to “…make strategic public investments with objective of serving all unserved communities by 2010.” </li></ul><ul><ul><li>“ Investing in long-lived elements of broadband infrastructure, such as conduits, fiber, and towers, does not subject the Commonwealth to risk of technology obsolescence. Considered on a lifecycle cost basis, broadband assets are very inexpensive compared to more traditional publicly funded infrastructures. Fiber costs much less than highways but provides similar economic benefits.” </li></ul></ul><ul><ul><li>$25M Bond for State MA Broadband Incentive Fund, “… directed to leverage private sector and federal investment by financing the construction and acquisition of broadband infrastructure , such as fiber and towers, to promote the development and deployment of broadband access.” </li></ul></ul><ul><ul><li>MA Broadband Institution to award projects to private/public organizations, Lease Conduits, Towers to fiber, copper, cable providers to connect towers </li></ul></ul><ul><ul><li>Towers for wireless: Lease cell site collocations to private wireless providers </li></ul></ul><ul><li>Source: http://masstech.org/broadband/legislation/packet.html </li></ul>Deborah Dupée, MBA, ATS ATIC Public Meeting Rev 1 June 19, 2008
  4. 4. Infrastructure: Towers Examples <ul><li>Left: “Camouflaged” single cell site monopole as Palm, called MonoPalm, located in Tucson, AZ. (Wikipedia) </li></ul><ul><li>Right: Two cell sites on single mast. (Wikipedia) </li></ul><ul><li>Cell towers connected by fiber, copper, cable providers. </li></ul>Deborah Dupée, MBA, ATS ATIC Public Meeting Rev 1 June 19, 2008
  5. 5. BP: Government Leverages Public Funds to Spur Economic Development/Broadband <ul><li>e-North Carolina Authority (e-NC) </li></ul><ul><ul><li>e-Communities, TeleCenters promoting Economic Development with demand for Broadband in Rural NC. </li></ul></ul><ul><ul><li>e-NC: Consulting Services with e-Communities, TeleCenters, Other States </li></ul></ul><ul><ul><li>2001- 2006: Valuable Results </li></ul></ul><ul><ul><ul><li>$9,966,760 leveraged by the e-NC Authority </li></ul></ul></ul><ul><ul><ul><li>1,190 new jobs created </li></ul></ul></ul><ul><ul><ul><li>20,533 technical/business clients </li></ul></ul></ul><ul><ul><ul><li>Source: http://www.calink.ca.gov/pdf/e-nc.pdf </li></ul></ul></ul>Deborah Dupée, MBA, ATS ATIC Public Meeting Rev 1 June 19, 2008
  6. 6. BP: Government Leverages Public Funds to Spur Economic Development/Broadband <ul><li>State agencies provide services to other agencies, private groups as “Resource Recovery”/”Profit Center” </li></ul><ul><li>Tennessee State GIS Dept provides GIS services: </li></ul><ul><ul><li>State Agencies use to create base maps </li></ul></ul><ul><ul><li>Maps for Broadband: Connected Tennessee using base GIS maps for broadband Mapping. </li></ul></ul>Deborah Dupée, MBA, ATS ATIC Public Meeting Rev 1 June 19, 2008
  7. 7. BP: State Broadband Task Force: Diverse Community Membership Promotes Cooperation <ul><li>CA Broadband Task Force Members Include: </li></ul><ul><ul><li>Service Providers (Telcos, Cable) </li></ul></ul><ul><ul><li>Government Officials </li></ul></ul><ul><ul><li>Business Execs </li></ul></ul><ul><ul><li>Legislators </li></ul></ul><ul><ul><li>University Leaders </li></ul></ul><ul><ul><li>K-12 Educators Organizations </li></ul></ul><ul><li>Cooperation of all members reinforced by group goals </li></ul>Deborah Dupée, MBA, ATS ATIC Public Meeting Rev 1 June 19, 2008
  8. 8. BP: State Broadband Task Force: Diverse Community Membership Promotes Cooperation Deborah Dupée, MBA, ATS ATIC Public Meeting Rev 1 June 19 , 2008
  9. 9. BP: State Leverages Mergers for Broadband & Economic Development <ul><li>California Emerging Technology Fund for Broadband 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.” </li></ul><ul><li>Created by CPUC “... committed to 100 percent (CA) access in the next five years...”, upon Mergers of Verizon/MCI and SBC/AT&T in Nov. 2005 </li></ul><ul><li>$60M Seed Fund from SBC ($9M/yr/5yrs) & Verizon/MCI funding ($3M/yr/5yr) To be matched by other funds (private/public) for total $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: http://www.caltelassn.com/Reports06/CETF/puc111805.pdf </li></ul>Deborah Dupée, MBA, ATS ATIC Public Meeting Rev 1 June 19, 2008
  10. 10. BP: State Leverages Mergers for Broadband & Economic Development Deborah Dupée, MBA, ATS ATIC Public Meeting Rev 1 June 19, 2008
  11. 11. Some Broadband & Economic Lessons Learned <ul><li>States need – and Programs, Service Providers meet - Goals, measurable Objectives and Implementation methods, Reporting Methods, Metrics for best practices (Key Performance Indicators/KPIs) </li></ul><ul><li>KY Gov. declared in April 2008 for Connect Kentucky funding: “…specifically identifying any services to be rendered to the state (and) providing for any oversight, control or performance measures relative to the services being rendered…, consider the program needs related to … the Broadband initiative…” </li></ul><ul><ul><li>Source: http://www.publicknowledge.org/pdf/20080414164528021.pdf </li></ul></ul>Deborah Dupée, MBA, ATS ATIC Public Meeting Rev 1 June 19, 2008
  12. 12. Some Broadband & Economic Lessons Learned <ul><li>Using Geographic Information Systems (GIS) mapping is important for Broadband tracking/Availability/Adoption </li></ul><ul><li>Massachusetts Broadband Initiative used manual methods for initial maps, which will be converted to GIS for future mapping to replicate, substantiate data and create base maps for future Broadband projects. </li></ul>Deborah Dupée, MBA, ATS ATIC Public Meeting Rev 1 June 19, 2008

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