REQUEST FOR PROPOSAL

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ALBERTA TELECOMMUNICATIONS NETWORK
INFRASTRUCTURE STRATEGIC ALLIANCE ------------ REQ
UEST FOR PROPOSALS (RFP)
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AGENDA

• Need
• Process
• Results
• Next Steps

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NEED
ASRA ICT STRATEGY - OCT 1998

• Future economic advantage will come from a
  vigorous ICT infrastructure. Our goal is to
  connect 90 percent of Albertans within three
  years -- providing high-speed access to 100
  percent of schools, 95 percent of businesses, and
  80 percent of residences

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NEED
Province-wide, reasonably priced, high-speed
access to network services Internet

• Required in a global economy
• Generally available in major centres
• NOT AVAILABLE IN RURAL LOCATIONS

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NEED
RFP OBJECTIVES

• To make high-speed network Internet access
  available, province-wide, at a reasonable price
• Reasonal price Competitive urban rates
• High-speed 10Mbps access 100Mbps for
  interconnection
• To form a strategic alliance with a Vendor
  (consortium or an individual organization) for
  network development and implementation

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NEED
RFP OBJECTIVES (contd)

• Encouraged
• Innovative proposals on both the alliance and on
  approaches for achieving the targets
• Leveraging existing vendor infrastructure GOA
  network services

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PROCESS

• Multi-phases
• Initial supplier input Dec 1999 - Jan 2000
• RFP released Feb 29, 2000 through MERX - Closed
  April 4, 2000
• 10 proposals - 9 met mandatories
• Shortlist Process
• Axia, Bell Intrigna, Group GT, Telus
• Two Phase Best and Final Offer Process
• Axia (Phase 1), Bell Intrigna, Telus
• Cabinet Approval - Bell Intrigna October 31, 2000

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PROCESS

• Involved key stakeholders for each phase
• Project Office/Core Team formed
• Cross INNSCI resources
• Cross GOA/stakeholder input
• Deputy Minister ICT Committee feedback
• Private sector expertise
• Private sector facilitator, SVS, used throughout
• Financial, technical, regulatory, contractual,
  etc

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RESULTS - WHAT WE GOT

• 10 Year Agreement with Bell Intrigna Inc.
• One time GOA investment of 193 million
• Consortium Partners/Affiliates/Suppliers
• Axia IP Services Ltd., BCE Emergis, Bell
  ActiMedia, Bell Nexxia, Cisco, Microsoft,
  Netricom, NORTEL Networks, Telesat Canada, Total
  Telecom, Wi-LAN, 360 Networks
• Bell and Axia deliver and run the network
• Not a typical supplier arrangement

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• Network a mix of fibre builds and existing
  supplier infrastructure (swap/buy/lease)
• Condominium approach All suppliers can
• Buy (or swap) a share of the fibre (during build
  or after)
• Lease bandwidth at competitive rates
• GOA has perpetual right to use (IRU)
• Ownership will be held at arms length
• GOA/stakeholder rates are costs to run divided
  over users
• Because of fibre capacity, bandwidth can be made
  available to businesses at urban competitive rates

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RESULTS - NETWORK

• Extended Area
• 372 communities
• GOA/stakeholder needs
• Proceeds from businesses (urban benchmarked
  rates) to GOA to further network

• - 143 Million GOA
• - 100 GOA IRU

• Base Area
• 48 communities
• GOA/stakeholder needs
• Business proceeds to Bell (urban benchmarked
  rates)

• - 50 Million
• GOA
• - 33GOA IRU

- 102 Million Bell - 67 Bell IRU
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RESULTS -NETWORK
BUFFALO TRAILS SCHOOL DIVISION

• Combination
• Fibre build
• Use of Existing Infrastructure

Communities with one or more school
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RESULTS - IMPACT
RURAL COMMUNITIES

• Future (Everywhere)
• Residences
• High speed DSL residential Internet at urban
  rates (40/month)
• Businesses
• High speed business services available at
  competitive urban rates (eg 820/month - T1)
• Higher speeds at comparable rates

• Current (Typical)
• Residences
• 56 Kbps dial Internet (85/Month)
• No high speed Internet
• Businesses
• Some T1 Facilities (2000/Month average - rates
  distance sensitive)
• Some high speed business service on special
  setup arrangement

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RESULTS - IMPACT
GOA STAKEHOLDERS (Schools/Hospitals/Libraries,
etc)

• Future - Everywhere
• 256 KBPS 246/month
• 10 Mbps at 504/month
• 100 Mbps at 697/month

• Current - Typical Rural
• For the most part high speed services not
  available
• Sometimes available at distance sensitive
  business rates

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RESULTS -IMPACT
GOA (Future)

• High speed services to all GOA buildings at
  stakeholder rates (as part of 3 year rollout)
  e.g.
• 256 KBPS 246/month
• 10 Mbps at 504/month
• 100 Mbps at 697/month

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NEXT STEPS

• Contracting and Transition Phase
• Develop contract for Strategic Alliance
• Complete province wide implementation plan
• Considerable interaction between INNSCI,
  ministries, stakeholders Bell
• Complete conversion plans for GOA network
  services.
• Considerable interaction between INNSCI,
  ministries Bell.
• Establish governance model
• Steering committees, advisory groups,
  benchmarking models, planning processes, etc

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NEXT STEPS

• Ongoing
• Initial organization being put in place to
  complete Contracting and Transition phase
• All current network groups consolidated
• Will evolve to ensure long term needs for
  bandwidth and next generation services are met
• Extensive interaction with GOA stakeholders and
  communities e.g.
• rollout priorities, establish community culture
  of use
• Extensive interaction with GOA ministries to
  ensure successful conversion of GOA network
  services e.g.
• scheduling, short long term planning, policy
  issues