Revenue-Generating Best Practices and Lessons Learned: Toward a Sustainable Broadband Model by U.S. States

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Revenue-Generating Best Practices and Lessons
LearnedToward 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

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BP Government Leverages Public Funds
for Infrastructure Broadband/Service
Providers

• Public funds used for Distribution Systems
  Infrastructure Lease to Private Sector for State
  Recurring Revenue
• Vermont Vermont Telecom Authority propose Cell
  Towers Infrastructure, 2008
• 40M bonds to leverage 200M in private sector
  investment
• Infrastructure leased to Service
  Providers/wireless collocation,
• Revenue from services over network for recurring
  revenue, payback bond. Create a Sustainable
  Model.

Deborah Dupée, MBA, ATS ATIC Public Meeting
Rev 1 June 19, 2008
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BP Government Leverages Public Funds
for Infrastructure/Broadband Service Providers

• Public funds used for creating State Distribution
  Systems Infrastructure Assets Lease to Private
  Sector for State Recurring Revenue
• MA Broadband Initiative, 2007 created MA
  Broadband Institute to make strategic public
  investments with objective of serving all
  unserved communities by 2010.
• 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.
• 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.
• MA Broadband Institution to award projects to
  private/public organizations, Lease Conduits,
  Towers to fiber, copper, cable providers to
  connect towers
• Towers for wireless Lease cell site collocations
  to private wireless providers
• Source http//masstech.org/broadband
  /legislation/packet.html

Deborah Dupée, MBA, ATS ATIC Public Meeting
Rev 1 June 19, 2008
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Infrastructure Towers Examples

• Left Camouflaged single cell site monopole as
  Palm, called MonoPalm, located in Tucson, AZ.
  (Wikipedia)
• Right Two cell sites on single mast. (Wikipedia)
• Cell towers connected by fiber, copper, cable
  providers.

Deborah Dupée, MBA, ATS ATIC Public Meeting
Rev 1 June 19, 2008
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BP Government Leverages Public Funds
to Spur Economic Development/Broadband

• e-North Carolina Authority (e-NC)
• e-Communities, TeleCenters promoting Economic
  Development with demand for Broadband in Rural
  NC.
• e-NC Consulting Services with e-Communities,
  TeleCenters, 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 19, 2008
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BP Government Leverages Public Funds
to Spur Economic Development/Broadband

• State agencies provide services to other
  agencies, private groups as Resource
  Recovery/Profit Center
• Tennessee State GIS Dept provides GIS services
• State Agencies use to create base maps
• Maps for Broadband Connected Tennessee using
  base GIS maps for broadband Mapping.

Deborah Dupée, MBA, ATS ATIC Public Meeting
Rev 1 June 19, 2008
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BP State Broadband Task Force Diverse Community
Membership Promotes Cooperation

• CA Broadband Task Force Members Include
• Service Providers (Telcos, Cable)
• Government Officials
• Business Execs
• Legislators
• University Leaders
• K-12 Educators Organizations
• Cooperation of all members reinforced by group
  goals

Deborah Dupée, MBA, ATS ATIC Public Meeting
Rev 1 June 19, 2008
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BP State Broadband Task Force Diverse Community
Membership Promotes Cooperation
Deborah Dupée, MBA, ATS ATIC Public Meeting
Rev 1 June 19, 2008
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BP State Leverages Mergers for Broadband
Economic Development

• 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
  areasdeployment of broadband facilities to bring
  critical advanced services to high cost and rural
  areas, such as telemedicine and online
  education.
• Created by CPUC ...committed to 100 percent (CA)
  access in the next five years..., upon Mergers
  of Verizon/MCI and SBC/ATT in Nov. 2005
• 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 wont replace private sector
  investment it will supplement itit 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

Deborah Dupée, MBA, ATS ATIC Public Meeting
Rev 1 June 19, 2008
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BP State Leverages Mergers for Broadband
Economic Development
Deborah Dupée, MBA, ATS ATIC Public Meeting
Rev 1 June 19, 2008
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Some Broadband Economic Lessons Learned

• States need and Programs, Service Providers
  meet - Goals, measurable Objectives and
  Implementation methods, Reporting Methods,
  Metrics for best practices (Key Performance
  Indicators/KPIs)
• 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
• Source http//www.publicknowledge.org/pdf/200804
  14164528021.pdf

Deborah Dupée, MBA, ATS ATIC Public Meeting
Rev 1 June 19, 2008
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Some Broadband Economic Lessons Learned

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

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