Commonwealth of PennsylvaniaBroadband Stimulus Initiative

National Telecommunications & InformationAdministration (NTIA)

Washington, DCMay 6, 2009

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Attendees

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Commonwealth of Pennsylvania

Naomi Wyatt, Secretary of Administration; Governor’s Office of Administration

Brenda Orth, Chief Information Officer; Governor’s Office of Administration

Rebecca Bagley, Deputy Secretary for Technology; Department of Community & Economic Development

Luc Miron, ARRA Broadband Project Manager; Governor’s Office of Administration

Commonwealth Broadband InitiativesChapter 30 Amended by Act 183

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Pennsylvania Background

Pennsylvania Background

Most aggressive rural broadband deployment program in Nation according to United States Internet Association

$193 million in total cumulative local rate increases from 2005-2008 to fund broadband deployment

Projected rate increases in place of $98 million for 2009. Rate increases are continuing into the future

“Shovel ready” unmet aggregate demand stemming from state broadband initiatives

US Census: 3rd largest rural population behind TX and NC; 3rd largest elderly over age 65 behind FL and W Va

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Pennsylvania Chapter 30

Chapter 30 originally enacted in 1993 to achieve early deployment of universally available state-of-the-art broadband network in Pennsylvania, re-enacted in new form in November 2004 (Act 183)

Authorized several ambitious initiatives that will substantially increase the investment in Commonwealth telecommunications infrastructure

Act 183 mandate for Department of Community and Economic Development (DCED) to create an Inventory of Services database

Collection, compilation, and maintenance of a comprehensive listing of broadband services available from all broadband providers operating in the Commonwealth, regardless of technology used

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E-Fund

Education Technology Fund (E-Fund) of November 30, 2004 (Act 183)

Purchase or lease of telecommunications services, infrastructure, or facilities to establish and support broadband networks between, among, and within school entities (Intermediate Units and School Districts)

Purchase or lease of premises telecommunications network equipment and end-user equipment

Distance learning initiatives using the foregoing broadband networks

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Pennsylvania ProposalsFor Consideration by NITA

Update on Activities

Responses to FCC solicitations and joint NTIA/RUS RFI

Intra-agency coordination – Governor’s Office, Office of Administration, DCED, PUC, DGS, Health, Education, others

Coordination with telecommunications carriers and interested stakeholders

Public meetings in rural PA

Development of plan / prospective NTIA application

Identification of potential ‘shovel ready’ projects

Updates to state mapping inventory

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Discussion Items

PA is poised to execute on BTOP project

State strategy in place

Availability of preexisting and documented demand for broadband services – shovel ready

Mapping inventory points to “unserved” and “underserved” priority areas

Statewide public safety tower network could help extend reach into last-mile areas

Statewide telecommunications procurement being finalized; could help direct deployment of long-haul and middle mile trunks

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Discussion Items

Prior positive action by states should be further leveraged by ARRA:

Landmark state legislation with statutorily mandated (accelerated) broadband deployment by regulated incumbent local telephone companies

Establishment of outreach & aggregation mechanism (with funding) for pre-existing unserved broadband demand

Aggregation program with statutorily mandated “business case” upon reaching threshold of committed customers

Financial assistance to schools for connectivity, equipment, content, technical assistance ($10M per year)

Statewide mapping and public inventory of services10

Discussion Items

Prior positive action by states should be considered

Pennsylvania is net contributor to the federal USF at a level of $125 - $135 million annually

Implementation of extensive intrastate carrier access charge reforms at corresponding high cost

As a net contributor to the federal USF, PA already supports deployment of broadband facilities in other states

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Discussion Items

NTIA Programmatic considerations

Requirement for state plan and mapping as condition precedent to receipt of deployment funds

Importance of State’s Role in project awards:

Endorsement or recommendation by States

Alignment with state plan

NTIA approves State plan and States approve/recommend projects that are aligned with State plan

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Discussion Items

Funding Determinations; Equitable Distributions to States

ARRA stipulates at least one project award per state

Recommend “per capita” formula for BTOP in event of “per state” distribution

Particular circumstances of states should be taken into consideration

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Discussion Items

BTOP Program Administration

Consider enlisting assistance of states to administer portions of BTOP program

NTIA approves State plan and States approve/recommend projects that are aligned with State plan

Mutually beneficial arrangement to ensure fulfillment of goals and timelines

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Discussion Items

Project match considerations

Prior financial investments by States should be given consideration, such as:

Allow statutorily approved rate increases to secure broadband deployment commitments as 20% match required under ARRA

State investment made through state towers or other related infrastructure

Award of state funds which yield aggregated demand and ‘shovel-ready’ projects (BOAF)

Award of state funds under state E-Fund for deployment of broadband networks linking school entities

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Discussion Items

Wireless broadband deployment

Discussions mostly focused on residential and commercial availability

Recognize emergence of hand-held devices and mobile applications

Important for economic development, public safety, tourism, quality of life

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Discussion Items

Project Sustainability

ARRA provides initial capital expense allowing deployment of infrastructure

Sustainability of ARRA projects is an essential component of project approvals

Identification of anchor tenants & community partnerships

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Discussion Items

Competition & Choice

Business case may not always allow for multiple providers and/or multiple broadband access technologies and services, e.g., landline telecommunications, CATV, wireless, broadband over power lines, etc.

Shared or neutral collocation facilities, common infrastructure, and potentially common carriage requirements under pre-existing and applicable federal (e.g., Telecommunications Act of 1996) and state law.

Usage of state infrastructure (towers) as a means of accelerating deployment and extending reach of network

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Discussion Items

Administrative Considerations

State Procurement & Contracting Mechanisms

Reimbursement of State planning funds

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Open Discussion or Questions

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