FTTH COUNCIL’SGIGABIT COMMUNITIESRACE-TO-THE-TOP PROGRAM

Presentation to the Minnesota Governor’s Task Force on Broadband -- August 13, 2013

Thomas Cohen, Kelley Drye & Warren LLP

tcohen@kelleydrye.com

FTTH Council Gigabit Communities Initiatives

Community Toolkit Becoming a Fiber-Friendly

Community Gigabit Communities Race-to-the-Top

Program Gimme Fiber Day – November 4th

FTTH COUNCIL COMMUNITY TOOLKIT

From Gigabit Envy

To Gigabit Deployed

FTTH COUNCIL COMMUNITY TOOLKIT• http://www.ftthcouncil.org/p/cm/ld/fid=79

• Purpose– Provide communities with a roadmap for the

deployment of gigabit, all fiber networks

• Value Proposition– Unlimited bandwidth transforms communities

• Building and Implementing the Business Plan– Creating a community asset inventory– Initial Financial Spreadsheet (courtesy of the

Blandin Foundation)– Federal and State Resources

FTTH COUNCIL COMMUNITY TOOLKIT• RFP Templates

• Six different models to fit different communities (courtesy of Gig.U)

• Building Community Support• Creating a community leadership team and

organizing support

• Managing the Project• Going to contract (Google KC Agreement)• Deploying the network

• Council Community Toolkit Conference May 2013• Contact the Council for Presentations

BUILDING A FIBER-FRIENDLY COMMUNITY• http://www.ftthcouncil.org/p/bl/et/blogaid=

214&source=1

• Community Leadership and Support– Develop a clear Broadband Plan– Ensure commitment of community

stakeholders

• Government Approval Requirements and Permitting– Define an expeditious process for on-going

permitting and inspections– Permit innovative construction techniques– Build out requirements have proven

counterproductive; instead provide incentives

BUILDING A FIBER-FRIENDLY COMMUNITY• Use of Existing Infrastructure

– Publish data about existing infrastructure

– Make all rights-of-way and poles available on clearly defined, reasonable terms through a rapid approval process

– Ensure make-ready work for poles is performed expeditiously

– Coordinate pole maintenance and make-ready work with the network provider

– Allow prospective attachers to perform/direct make-ready work

BUILDING A FIBER-FRIENDLY COMMUNITY• Proactive Measures to Improve

Infrastructure and Expedite Deployments– Provide space on poles for new

attachers– Install ubiquitous fiber conduit– Use building codes and community

development plans to drive fiber deployments

GIGABIT COMMUNITIESRACE-TO-THE-TOP PROGRAM• The Petition

– FTTH Council petitioned the FCC on July 23, 2012 to establish a Gigabit Communities Race-to-the-Top Program

• The Opportunity– Unlimited bandwidth can “transform the mindset

and capabilities of a community”

• The Challenge– While communities want gigabit networks, there

is a gap between the high up-front cost of the network and the lag in obtaining sufficient revenues

GIGABIT COMMUNITIESRACE-TO-THE-TOP PROGRAM• The Program Objective

– Bridge the market gap by seeding a critical mass of gigabit communities, lowering the cost of deployment and creating sufficient gigabit applications

–

• The Program– A competitive grant program to award

Catalyst (seed) Funds in Tier II and III communities for the deployment of symmetrical gigabit networks

– Modeled on the Department of Education’s Race-to-the-Top Program for states; Complements the FCC’s new E-Rate Proposal

GIGABIT COMMUNITIESRACE-TO-THE-TOP PROGRAM• Program Funding– $150M in annual Catalyst Funding

for 5 years– Approximately $20M per project

($10M in Catalyst Funds with 100% match)

– Funding Source – “Unused” support from the FCC’s Connect America Fund Phase I/Phase II programs (after support is rejected by price cap – larger – telcos)

GIGABIT COMMUNITIESRACE-TO-THE-TOP PROGRAM• The Projects

– Deploy within 2 years a gigabit network to community anchor institutions and their surrounding neighborhoods and, in doing so, seek to maximize the value of the gigabit network for the entire community

– Largely last mile deployments (with additional middle mile connectivity if required)

– No overbuilding of existing networks with same gigabit capabilities

– Examples – Health Care Center; Community College

GIGABIT COMMUNITIESRACE-TO-THE-TOP PROGRAM

• The Project Team– Facilities & Service Providers• Public or Private (Incumbent or

Competitive Provider)• Not necessary to be an Eligible

Telecom Carrier– Local governments– Community anchor institutions

GIGABIT COMMUNITIESRACE-TO-THE-TOP PROGRAM• Project Selection Criteria

– Involvement of and Connections among Community Anchor Institutions and Associated Neighborhoods

– Reasonableness of Business Case– Efficiency of Deployment– Efficiency of Network– Amount of Matching Support– Opportunities to Stimulate Deployments

and Advances in Applications Development– Service Provider/Vendor Experience and

Financial Soundness

GIMME FIBER DAY

• FTTH Councils’ Global Alliance initiating annual celebration – November 4th – Birthday of Dr. Charles

Kao, inventor of fiber optics

• In North America, we are featuring one of our FTTH communities– Will focus media outreach on

community’s leadership, economic and social applications due to FTTH

– We will announce the community at the FTTH Annual Conference and Expo next month in Tampa