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John Mann Florida Public Service Commission Presented By: 706 Federal / State Joint Conference on Advanced Services: State Commissioners


JOINT CONFERENCE FIELD HEARINGS: WHAT WAS THE MISSION? Determine who is deploying advanced services? What are the barriers to deployment? Where is broadband available? How can we get better data? How can we present this data to policy makers?




FOLKS FOUND FREQUENT FLYER MILES! Map Courtesy of Emily “Rand McNally” Hoffnar


Washington D.C. x Cooperation and Communication Between The Federal Government and the States x Close Digital Divide and Eliminate Barriers of Time, Distance and Geography x Schools and Libraries as Anchor Internet Tenants x NTIA’s TOP Program x Joint Conference Information On-line


Federal-State Joint Conference on Advanced Services Web Site:


Western Regional Hearing Anchorage, Alaska Panel One - Satellites x Critical to Alaska - costly x Regulatory problems regarding bandwidth sharing x Inefficient transponder use x Pessimism regarding LEO systems x FCC requiring new providers to deliver services to Alaska


Western Regional Hearing Anchorage Alaska Panel Two - Health Care x Telehealth Advisory Group x Store and Forward Technology x Sustained Telemedicine Funding x Relationship between Schools and Health Care x Problems with Security and Privacy x 3% of Health Care Budget is Telecommunications


Alaska Telehealth Advisory Group




Panel Three - Distance Education x Aggregating Bandwidth Is Necessary x Digital Divide - Technology, Training, and Education Problem x E-Rate Benefits x Aleutians East Education/Health Consortium x Rural Alaska LECs and DSL Western Regional Hearing Anchorage Alaska


Panel Four - Economic Development x Mailing Floppy Disks Does Not Work x Internet Importance for Tourism x Training as Important as Infrastructure x Internet Critical to Transform Extractive Economy to Information Economy x Broadband Benefits of Reduced Isolation, Alternative to Drugs, Reduction of Suicide Rate Western Regional Hearing Anchorage Alaska


Western Regional Hearing Tacoma, Washington Panel Discussion: x Forks Project (CLEC, Hospital, Utility District and School District) Aggregate Demand x State Tax Credits x State as Anchor Internet Tenant x Bonneville Power Administration - Discounted Sale of Capacity on Dark Fiber x Teledesic - LEO 280 Satellites: Projected for 2004 x Satsop - Use of Unfinished Nuclear Plant $15 M of Seed Capital Paid by Electric Company to Avoid $100 M in Decommissioning Costs


Satsop - One Man’s Garbage Is Another Man’s Gold!


Midwestern Regional Hearing South Sioux City, Nebraska BROADBAND DEPLOYMENT Public-private Partnerships are essential – No sector can provide rural broadband deployment alone: Contrast Iowa’s state network and Nebraska’s shared network Rural development must increase telecomm utilization and demand: Aggregate public-sector demand Provide training for rural users Assure cost equality The digital divide exists only when we think of high-speed Internet access as a universal service item: In the case of smaller communities, financial investment incentives are needed

Midwestern Regional Hearing -- Wireless: 

Midwestern Regional Hearing -- Wireless Economic advantage needed to attract private companies to invest in advanced services in rural areas Spectrum and equipment are critical needs The secret of wireless: the bulk of the capital is not invested until customers are actually obtained. About 80% is equipment at the subscriber's premises – i.e. modest first costs to be ready to serve and modest investments at the customer location when the subscriber is acquired Wireless can overcome the low-density factor New and innovative services should get the same incentives as traditional carriers

Midwestern Regional Hearing -- Health Care: 

Midwestern Regional Hearing -- Health Care Applications developed and tested in Iowa: virtual libraries, advanced radiology, emergency room support, pediatric cardiac imaging, consultation for patients with mental illness or disabilities, multi-prison consultation service, home nursing to isolated elderly patients, care of disabled children who are difficult to move “Actually doing telemedicine is difficult. The least of these difficulties is technology. Education, support, and training of providers are critical. The need to recognize and mitigate political and social factors is often ignored at considerable peril.” "The incentives needed for full participation and evaluation of telemedicine are not yet present, particularly in the area of payment for service.” Changing from traditional life-long learning model of coming to a place to obtain continuing education -- to one in which the product is delivered at the site of work or in the hospital environment or in the school environment. Rural poverty affects rural health Rigorous scientific data supporting cost-effectiveness, safety, and efficacy of telemedicine needs to be developed

Site Visit Hawarden & Orange City, Iowa: 

Site Visit Hawarden & Orange City, Iowa Hawarden: hybrid fiber and coaxial cable system built to ensure the city's economical, technological, educational viability Orange City: public-private partnerships Local initiative is critical


Federal-State Joint Conference on Advanced Services Field Hearings:


Northeastern Regional Hearing: Lowell, MA Panel One ‑ Data Gathering Initiatives * Availability: density and income. * 2.4 ‑million cable modems * 500,000 with DSL service, 57% of central offices have DSLAMs. * 45% percent of rural America within 13,000 feet of a central office or remote switch. * 46% of the lines that are between 13,000 feet and 34,000 feet (about 5 miles) from a switching point could be provisioned with SDSL service (786 kilobits per second). * Rural company DSL prices may actually be lower than those of the RBOCs, in part because the rural companies are deploying less costly, standard (non‑proprietary) protocols.


Panel One ‑ Data Gathering Initiatives - continued * Rural company DSL prices may actually be lower than those of the RBOCs, in part because the rural companies are deploying less costly, standard (non-proprietary) protocols. * At the low end, it costs about 140 dollars to upgrade cable line; at the high end, it's a thousand dollars a line. That is one of the reasons why rural America will not see cable upgrading in the absence of strong incentives. * MMDS has a variable cost structure, so they only spend money when they win customers. * Pennsylvania compiling a technology database. Northeastern Regional Hearing: Lowell, MA


Access Pennsylvania


Panel Two ‑ Public/Private Partnerships * Leverage investment in broadband systems enjoyed by some communities into extension of service to all. * The power of education. * The power of good data. The power of aggregation. The power of local competition. Preserving technology neutrality. Leveraging local and regional assets. * Berkshire Connect Project * Cape Cod Connect’s collaborative efforts. * Massachusetts Community Network Northeastern Regional Hearing: Lowell, MA


Berkshire Connect


* Maine’s public/private partnerships in the field of education went from 9‑percent penetration in schools in 1995 to 100‑percent broadband by 1997. * Maine also has a distance learning (ATM) project, $15 million, to purchase capital equipment to facilitate broadband services in high schools; a state E‑rate to supplement the federal E‑rate, and the learning technology endowment dedicated to more education technology. * Maine kiosk model: Verizon to deploy services to magnet towns. * Maine legislature reduced telecommunications property tax rates by 40 percent as incentive for the construction of infrastructure. Northeastern Regional Hearing: Lowell, MA


Panel Three ‑ Rural Success Stories & Challenges * Citizens Telecommunications of New York, which serves predominately rural areas, provides advanced telecommunications services to facilitate customized distance learning arrangements with 27 schools in New York State. * Cable operators in New York are also upgrading their infrastructure - 94 percent by March 2001 * Frontier Telephone of Rochester no charge DSL to non-profits * Adirondack Area Network formed a 501(c)(3) with leveraging power of demand aggregation. Northeastern Regional Hearing: Lowell, MA


Northeastern Regional Hearing: Lowell, MA * Problems: expensive LATA crossings, dealing with different carriers and technologies, and the learning curve at the end-user sites. * Oxford Telecom MMDS Trial in Portland, Maine, awaiting FCC approval for their license. * Vermont “prairie fire of demand.” Problem of lack of toll-free internet access.


Federal-State Joint Conference on Advanced Services Web Site: Links


Gulf States and Southeast Regional Hearing: Miami, Florida Panel One - Fixed Wireless


Panel Two - Deployment to Rural and Urban Multicultural Communities x BellSouth, IT Task Force, Community Access Centers, Glasgow Kentucky, Spanish search engines x BellSouth efforts at creating multi-lingual customer support center x Multi-lingual search engines x Integrated fiber in the loop (IFITL) x Community Access Centers x Glasgow Kentucky - $12 Cable Modem Internet access Gulf States and Southeast Regional Hearing: Miami, Florida


Panel Three - Public - Private Partnerships x Aggregation of demand in North Carolina at State level and tax credits to speed deployment to rural areas x North Carolina - local dial tone access to all within one year and 3 year plan all citizens 250k or better both rural and urban x Florida NAP - ISPs, ASPs, ILECs, CLECs x Media One - training of teachers, 3 mobile Internet training labs, connected 6,000 schools in U.S. x Schools need computers - possible future E-Rate funding Gulf States and Southeast Regional Hearing: Miami, Florida


Federal-State Joint Conference and NRRI Survey:


Mountain West Regional Montana Satellite Panel One - Government x Montana Information Services Division - Demand Aggregation; Voice, Data, Video to State agencies and Universities x Problems with Mileage - Sensitive Pricing x Montana “Hole” to Pops and Backbone x Benefits of E-Rate x Pricing Issues: $3,500 T-1 Line Efforts and Challenges in Advanced Services Deployment


Panel Two - Small Rural Companies Challenges – Distance, Density, Demand; Cost recovery Small Telco’s Pool Resources to reach communities MAIN (MT Advanced Info Network) VisionNet (ATM provides voice, video, data to 77 sites) x Peering Among Small Providers - Fiber Hotel x Universal Service High Cost Support x Basic Services = Advanced Services Foundation Mountain West Regional Montana Satellite Efforts and Challenges in Advanced Services Deployment


Panel Three - Communities Partnering to connect medical facilities --Partners in Health Telemedicine Network (Hospital and Indian Health Services) --Montana Health Telecommunications Alliance (Aggregation of Telemedicine Networks) Partners in communities - Dillon Net; KooteNet Grassroots efforts for Internet Training & Access; RUS & TOP (formerly TIIAP) grant funding Advanced service on tribal lands Cultural considerations; economic realities on Indian lands; education; expanded scope for calling areas Mountain West Regional Montana Satellite Efforts and Challenges in Advanced Services Deployment


Mountain West - Cheyenne, Wyoming * ILECs Working with Coops * Wyoming Governor’s Telemedicine Committee. * Multi-state Telemedicine Demo-WA, WY, AK, MT, ID * Wyoming Data Network. * Eastern Montana Telemedicine Network – Funded in part by grants from RUS and Office of Advancement of Telehealth * South Dakota - Black Hills Corporation NYSE Public Company Bringing Fiber to Rural Areas. * Sprint Claim of Lack of Interest $13 Million in Upgrades for ISDN is not Being Subscribed. Panel I: Importance of Demand Aggregation


* Grand River Mutual (Princeton Missouri) Converts 21% of Their Customers to DSL in First Weeks. * San Angelo, Texas - Early Deployment of LMDS, Local Multipoint Distribution Services. * Nemont Telephone (Scobey, Montana) Deploys ADSL in Service Area With 1.36 Subscribers/Sq. Mile, 13,768 Square Mile Service Area. 47% of Customers Will Have Access to ADSL by End of 2000. * More Expensive Network Equipment/Technology Required to Bridge “Rural” Divide. * “Last Mile” in South Dakota, Montana and Wyoming Equals 50 Miles! * NECA Study $10.9 Billion Nationwide to Upgrade Local Loop. Mountain West - Cheyenne, Wyoming Panel II: Contrasts in Advanced Services Deployment


Bill Kennard Nan Thompson Susan Ness Irma Dixon Harold Furchtgott-Roth JoAnne Sanford Gloria Tristani Steve Furtney Mike Powell Brett Perlman Bob Rowe Meet the Experts

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