Kevin R' MacRitchie

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Public and Private Partnerships Creating a
Shared Network Strategy for Education,
Government, and the Community
Building and Financing Shared Services
Changing the Future
Rigor, Relevance, Relationships
Kevin R. MacRitchie VP - Cisco Systems, Inc. CTO
Chief Strategist - Global Defense National
Security Fellow - Educational Collaboration
Technologies CCIE 1079 cowboy_at_cisco.com
Bruce Umpstead State Director, Ed
Technology Michigan Dept. of Education State of
Michigan umpsteadb_at_michigan.gov
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BB Stimulus UpdatesPublic Sector Cross-Agency
Collaboration Opportunities
The scope of eligible programs includes
construction of wireline and wireless broadband
networks in areas of the country with limited or
no broadband access.

• Key Focus Areas
• Job Creation
• Number of areas where service will be available
  or improved, including the homes or businesses
• How projects stimulate private investment
• Whether projects provide service to strategic
  institutions
• Encouraging broadband demand
• Increase capacity to un-served and under-served
• 24/36 month completion clause

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BTOP RUS Application Process
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• New website will play a central role in the
  NTIA/BTOP and RUS/BIP application process
• http//broadbandusa.sc.egov.usda.gov/index.htm,
• Application materials for BTOP (4.7b) and BIP
  (2.5b) funds will be available for review on
  July 7th
• 4b available in first wave of funding
• Remainder must be awarded by September 30, 2010
• Applications will start being accepted as of July
  31st Applications must be on file by 500 pm on
  August 14th
• Awards will be announced beginning Nov 7, 2009

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Programs - overview
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• RUS Broadband Infrastructure Program - at least
  75 of funded area is rural area that lacks
  sufficient access to high speed BBD to facilitate
  economic development
• Unlike NTIAs grants-only program, RUS/BIP can be
  grants, loans, and grant/loan combinations
• Statute give end users a choice serve greatest
  numbers of rural residents who are unserved
  projects with current/former RUS borrowers fully
  funded and ready
• NTIA Broadband Technology Opportunities Program
  -directed to unserved and underserved areas
• Broadband infrastructure
• Public Computer Centers
• Sustainable Broadband Adoption education,
  awareness, training, equipment, support to anchor
  institutions (schools, libraries, healthcare) or
  job-creating facilities stimulate demand,
  economic growth and jobs

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Funding
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• RUS/BIP
• Up to 1.2b for Last Mile
• Up to 400m for Remote Areas
• Up to 800m for loans or loan/grant combos for
  Non-Remote
• Up to 800m for loans or loan/grant combos Middle
  Mile
• Up to 325m for national reserve to be awarded
  by 9/30/10
• NTIA/BTOP
• Up to 1.6b total for this NoFA
• Up to 1.2b for Broadband Infrastructure projects
• Up to 50m for Public Computer Center projects
• Up to 150m for Sustainable Broadband Adoption
  projects
• Up to 200m for national reserve to be awarded
  by 9/30/10

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Nondiscrimination and Interconnection
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• Adhere to FCC Internet Policy Statement
• Not favor any lawful Internet applications and
  content over others
• Display any network management policies in a
  prominent location on service providers web page
  and provide notice to customers of changes to
  these policies
• Describe business practices or technical
  mechanisms employed to allocate capacity,
  differentiate among applications, providers or
  sources, limit usage, manage illegal/harmful
  content
• Connect to the public Internet (no closed,
  private networks)
• Offer interconnection where technically feasible
  and without exceeding current or reasonably
  anticipated capacity limitations, on reasonable
  terms and conditions to be negotiated with
  parties
• Must disclose practices with the application
• All subject to the needs of law enforcement AND
  reasonable network management
• Awardees may use generally accepted technical
  measures to provide acceptable service levels to
  all customers (e.g., caching and
  application-neutral bandwidth allocation,
  anti-spam, security, etc.)
• Managed services offerings are allowed
• Applies only to facilities built under program
  (not pre-existing)

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Other common elements of programs
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• Broadband at least 768 kbps down/200 kbps up OR
  sufficient capacity in the middle mile project to
  support provision of broadband to end users
• Applicants can file under last mile or middle
  mile for infrastructure money
• Last mile presumed to serve entirety of Census
  block unless file for waiver to serve less
• Income from project during grant period shall be
  further committed to the project
• Substantial completion within 2 years completion
  within 3 years
• No material revisions in applications once
  submitted

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Programs - interaction
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• Applicants for RUS/BIP may complete additional
  elements of application in order to be considered
  for NTIA/BTOP
• If denied by RUS, NTIA will consider the
  application
• If proposing project in an area at least 75
  rural, must file at RUS (can complete additional
  elements of BTOP to allow NTIA consideration if
  rejected by RUS)
• All other applications (less than 75 rural) must
  file at NTIA
• For NTIA, may submit projects that fit within one
  or more categories

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Agency review
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• Create a pool of viable and potentially fundable
  applications
• Public Notice of all applications allow
  existing service providers to challenge factual
  assertions about coverage
• Is application complete and is applicant
  eligible?
• Rank ordering of qualified applications
• In NTIAs case, by 3 experts independently
• Highest ranking will be invited to next phase
• Fully validate the submissions as grantable and
  identify the most highly qualified
• Additional documentation will be requested
  higher broadband speeds are awarded more points
• NTIA
• Applications rated 1 (lowest) to 5
• Invite state prioritization of qualified
  applications in each state (20 days)
• NTIA may request changes to proposal

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RUS/BIP detail
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• Grants available if serving exclusively remote,
  unserved rural areas if seeking more than 75-80
  total cost, must justify
• No overlapping awards geographically
  application with highest score wins (de minimis
  exceptions)
• Loans grant/loan combos to serve non-remote
  and underserved rural
• Combos Grant cannot be greater than loan amount
  RUS will favor applications with higher loan
  amounts up to 100
• Middle mile projects total geo served must be
  at least 75 unserved/underserved
• Projects must be fully funded (after approval of
  grant, loan or grant/loan combo)
• Financial feasibility for loans, revs gt
  expenses including debt service using RUS formula
  and for grants, per RUS formula, demonstration of
  positive cash flow

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NTIA/BTOP detail
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• Broadband infrastructure category access to
  unserved and underserved
• Underserved no more than 50 households have
  facilities-based terrestrial BBD at speeds no
  greater than 768 kbps down/200 up no fixed or
  mobile advertising speeds of more than 3 mpbs
  down OR rate of subscribership is 40 HH or less
• Unserved 90 HH lack BBD (as defined above)
• Public Computer Center entities that permit
  public use
• Sustainable Broadband Adoption broadband
  education, awareness, training, access,
  equipment, or support, especially to vulnerable
  populations
• Technology neutral review
• Small business
• 20 match of total eligible project cost in-kind
  contributions may count, if allowable
• Project would not have occurred but for BTOP
  funding
• Reasonableness of cost funding is sufficient to
  complete project

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NTIA/BTOP award criteria
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• Score of peer/expert reviewers in first step
• Ratings of federal reviewers in second step
• Satisfaction of programs purpose and priorities
• Geographical distribution at least one
  grant/state
• Range of technologies and uses of technologies
• Avoidance of redundancy, conflicts, unjust
  enrichment
• Availability of funds
• Recommendations of states

Awards will be made on a rolling basis, subject
to fund availability
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Broadband mapping
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• Separate NoFA on this later
• Can spend up to 350m

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BB Stimulus UpdatesPublic Sector Cross-Agency
Collaboration Opportunities
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Round 1
NTIA 4.7B
NTIA (RUS) BBS Rules to be Published
All Awards ()
Initial Proposal Review Process
First Set of Grant Awards (4B)
Round 3
3rd Solicitation
Round 2
2nd Solicitation
Nov 2009
June 30th 2009
Aug 14 2009
Oct. 2009
April 2010
June 2010
Sept. 30 2010
Additional Awards
Initial Awards
RUS 2.5B
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Michigans Statewide Vision4-3-2-1 Plan

• 4 Goals
• 3 Legs
• 2 Underlying Principles
• 1 Unified Network for Michigan

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Michigans Statewide Vision4 Goals

• Goal 1 Expand and upgrade broadband service to
  unserved/underserved populations across the
  State
• Goal 2 Transform Michigans economic
  competitiveness by making affordable broadband
  accessible to any business throughout the state
• Goal 3 Ensure a better, more efficient
  government for the 21st century
• Goal 4 Strengthen Michigans ability to monitor
  borders and critical infrastructure

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Michigans Statewide Vision 3 Legs

• Leg 1 Superhighway On-/Off-Ramps Makes up
  the Central Core of the Shared Infrastructure
  for the State of Michigan
• Leg 2 Local Networks The foundation for
  regional cooperation and access to the statewide
  core
• Leg 3 Un-served and Under-served Assists in
  providing lower cost access to the individual
  citizen and business owner, in addition to
  public entities

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Michigans Statewide Vision 2 Principles

• Principle 1 Reduce Ongoing Operating Expense
  (OPEX) while significantly increasing capacity,
  through Shared infrastructure and services
• Principle 2 Enable carriers/ISPs to increase
  reach, enhancing service and public/private
  partnerships for Michigan businesses and
  citizens
• This effort would NOT disable or replace
  existing services, but enhance carriers/ISPs
  access to lower cost infrastructure in every
  corner of the state. This network will include
  Vendor Managed Services for infrastructure and
  operation.

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Michigans Statewide Vision 1 Unified Broadband
Vision for Michigan

• A single unified broadband vision for Michigan
  will
• Lower costs, increase capacity for state/local
  government
• Lower costs, increase access for businesses and
  citizens
• Enable STEM advancements through collaboration
  and research across the K-12 community
• Globalize our people and resources
• Strengthen critical infrastructure and public
  safety

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Michigans Broadband Planning GroupA Closer Look

• Statewide Broadband Planning Group developed
  the plan
• State Departments Information Technology,
  Education, Transportation, History Arts
  Libraries, Community Health, Energy Labor
  Economic Growth and thePublic Service
  Commission, Legislative
• Others KPMG, Michigan Public Health Institute,
  Executive on Loan (Cisco), Michigan State
  University and Convergent Technologies
• Consulted with many vendors and local governments

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Leg 1 Statewide Superhighway

• Build a fiber optic superhighway
• - Routes
• I-75, I-96, U.S.131, U.S.127, and U.S.41
• Require a large fiber infrastructure broken into
  three segments
• 25 Governmental Use 25 Private Vendor 50
  Open Access
• Build On/Off Ramps to each County Seat
• RFI to vendors interested to sell/lease existing
  fiber along superhighway and on ramps
• Will enable Intelligent Transportation System
  along Michigans major thoroughfares
• Improved access to backhaul will lower the cost
  of entry for ISPs to reach unserved/underserved
  populations

Leg 1
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Leg 2 Local Networks

• Throughout each county construct or upgrade
  networks to allow for flow of information and
  application sharing between courts, schools,
  libraries, and other local and state government
  facilities
• Exact distribution amounts will be determined by
  criteria developed to highlight need and
  collaboration
• Libraries, community centers schools become
  virtual hubs for the unserved/underserved
  population
• These funds will come through the statewide
  application for NTIA funds. This award will not
  affect applications for funding Telecom Providers
  under RUS for rural service expansion and will
  not affect educational funds marked directly for
  school educational use.

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Leg 3 Broadband to the Unserved and Underserved

• Goal Expand coverage to all unserved and
  underserved areas of Michigan
• ISPs will have ability to use open access
  portion of backbone for low cost backhaul
• Use 173 MPSCS Towers as anchor WiMAX
  infrastructure
• Use cellular towers where available for
  additional build-out
• Build new towers to complete statewide coverage
• Use RFI to identify existing private tower
  locations and availability
• Other technologies will be under consideration

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Questions
and Thank You for your Time today!