George BoersmaCenter for Shared Solutions and Technology Partnerships

September 18, 2009

Broadband in Michigan

Make the Connection!

Michigan’s MomentConnect Michigan!Our vision is to provide broadband coverage to every corner of the state

The Recovery Act funds for broadband can make that happen

Governor Granhom’s call for “shovel ready” broadband projects draws a response that surpasses $2 Billion.

January 2009A Key Moment for Michigan

An Organized Approach is LaunchedMichigan’s Broadband Consortium

In late January 2009, the State of Michigan formed a broadband consortium composed of strategic partners

• Information Technology

• Education• Transportation• History Arts &

Libraries• Community Health• Energy Labor &

Economic Growth

• Michigan Public Health Institute

• Executive on Loan (Cisco)

• Michigan State University

• Convergent Technology Partners

• Many broadband providers

• Local governments

Michigan’s Vision for Broadband

Goal OneExpand and upgrade broadband service to unserved/underserved populations across the state.

Goal TwoTransform Michigan’s economic competitiveness by making affordable broadband accessible to any business throughout the state.

Michigan’s Vision

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Goal ThreeEnsure a better, more efficient government for the 21st century

Michigan’s Vision

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Goal FourStrengthen Michigan’s ability to provide public safety and homeland security

Michigan’s Vision

This is Michigan’s moment…

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$7.2 billionThe Recovery Act will make $7.2 billion available nationally for competitive grants and loans to improve broadband services to unserved and underserved areas.

Three Opportunities

Funding is expected to be dispersed over three application rounds. Round One closed in August and results are pending.

Rounds Two & Three have yet to be announced but are expected to occur in 2010.

Anyone can apply.

Two Federal Agencies Two Coordinated Programs

Department of Agriculture• Agency: Rural Utilities Service (RUS)

• Broadband Initiatives Program (BIP)

Department of Commerce• Agency: National Telecommunications and

Information Administration (NTIA)• Broadband Technologies Opportunity Program (BTOP)

…these agencies have defined the framework for the two broadband funding programs

Last MileInfrastructure projects with the predominant purpose of providing broadband service to end users like homes and businesses

Middle MileOther broadband infrastructure projects that do NOT predominantly serve end users directly

UnservedAn area, composed of one or more census blocks, where at least 90% of

the households lack access to facilities-based terrestrial broadband service

UnderservedA proposed funded service area, composed of one or more contiguous census blocks meeting certain criteria that measure the availability of

broadband service and the level of advertised broadband speeds.

Anchor InstitutionsCommunity anchor institutions (e.g., schools, libraries, medical facilities), organizations, agencies serving vulnerable populations (e.g., low-income, unemployed, aged), and public safety agencies.K

ey D

efin

ition

s

Rural Utilities Service (RUS)Broadband Initiatives Program • 75% of funded area is unserved/underserved

rural locations

• These awards can be a combination of grants and loans• In Round One, applicants were required

to apply for this first

Funding ProgramsWhat’s the difference?

Funding ProgramsWhat’s the difference?

National Telecommunications andInformation Administration (NTIA)Broadband Technologies Opportunity Program • Three categories of eligible projects

– Broadband infrastructure – last mile and middle mile– Public computing center– Sustainable broadband adoption

• All competitive grant monies

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Award Funding Per RoundRound One Closed August 24th:

– Rural Utilities Service (RUS)• $2.4 billion*

– National Telecommunications and Information Administration (NTIA)

• $1.6 billion

Rounds Two & Three:– Approximately 2/3 of funding left

*Amount appears inflated due to the use of loans and loan/grant combinations

Update:Michigan Milestones

January • Governor’s “Call for Projects”• Planning Consortium Established

February • Broadband Framework Developed

March to June • Non-stop Outreach Campaign (providers and stakeholders)

July • Statewide Provider Meeting

July to August • Provider to Provider and Provider to Stakeholder Pairing

August • 80 Applications Submitted in Round One (totaling over $575 Million)

September to December

• State Launches a “Call to Action” for Round 2

December • Anticipated Announcement of Round 1 Awards

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Update: Round One Infrastructure ApplicationsNational SceneRural Utilities Service• 400+ applications • Nearly $5 billion in grants and

loans requested

National Telecommunications and Information Admin.

• 260+ applications • $5.4+ billion in grants requested

RUS and NTIA • 830+ applications• Nearly $12.8 billion requested

State SceneRural Utilities Service• 45 applications • Over $189 million in grants and loans

requested

National Telecommunications and Information Admin.

• 1 Application• Over $19 million requested

RUS and NTIA • 19 applications• Nearly $330 million requested

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National SceneSustainable Broadband AdoptionNational Telecommunications and

Information Admin. only• 320+ applications • Nearly $2.5 billion in grants

requested

Public Computing CentersNational Telecommunications and

Information Admin. only• 360+ applications • Over $1.9 billion requested

State SceneSustainable Broadband AdoptionNational Telecommunications and

Information Admin. only• 9 applications • Over $38 million in grants

requested

Public Computing CentersNational Telecommunications and

Information Admin. only• 6 applications • Nearly $9 million requested

Update: More Round One Applications

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Total Summary of Round One Applications

Nationally…• Over $28 billion

in funding requests• 2,200+ applications

Michigan…• Over $575 million

in funding requests• 80 applications

*NOTE: Not all applications

will be approved

First Round Funds Actually Available: $4 Billion

To view Round 1 applications, visit

www.broadbandusa.gov

Prop

osed

Pro

ject

s ARRA Middle and Last Mile Round 1 Projects

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Key Issue:Permit CoordinationThe State of Michigan is… Working with State agencies and

other Statewide entities DNR, DEQ, MDOT MRRA, Utilities

Identifying local associations to work with on local permitting concerns CRAM, Equalization directors, economic

development, etc.

Next steps for local governments…

Local Governments

Your Call to Action for Round One!Review Round One Applications Key Issue: Know if your community is covered by any of the proposals.

If yes, partner with that provider now Bring stakeholders to the table Look at current, future needs Build plan for extending coverage (Round 2) Work collaboratively on permitting issues

If no application covers your area, reach out to providers from neighboring communities Put the wheels in motion for Round 2

View Round 1 applications at

www.broadbandusa.gov

Local Governments

Your Call to Action for Round Two!The Time to Mobilize for Round Two is NowKey Issue: Round Two may be your last opportunity.

Review Round One proposals Seek out providers willing to service your area Mobilize stakeholders in your community Identify coverage needs Identify available assets for providers (water towers, antennas, etc.) Streamline local, state and utility licenses and permits Solicit endorsements early Build a “shovel ready” plan with your provider

Note: Round Two requirements may change to include more urban coverage. Be ready!

Michigan…This is your moment!

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Available Resources• Online Resources:

– Michigan.gov/broadband– Broadbandusa.gov

• RUS Contact:– Ron Mellon, USDA RD

Telecom– Phone: (989) 567 – 2400– Email:

ronald.mellon@wdc.usda.gov • NTIA Contact:

– Office of Telecommunications and Information Administration, NTIA

– Phone: (202) 482-2048– Email: btop@ntia.doc.gov