Broadband Boot Camp 2016 AM Sessions
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Transcript of Broadband Boot Camp 2016 AM Sessions
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BROADBAND BOOT CAMP: TUESDAY, DECEMBER 6, 2016
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BROADBAND STRATEGIES FOR WISCONSIN COMMUNITIES
DECEMBER, 2016UNIVERSITY OF WISCONSIN EXTENSION
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THEMES
1. Where we are in the development of broadband (high-speed) Internet.2. Strategies and business models for enabling broadband development.3. Best practices for maximizing the potential for private sector investment in your
community.
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INTERNET TECHNOLOGY SPEED DEVELOPMENT
Dial-up
Wireline Technology
50 kbps
100 kbps
500 kbps
1 Mbps
5 Mbps
10 Mbps
50 Mbps
100 Mbps
200 Mbps
500 Mbps
700 MHzBroadband
EDGE
3G
4G
TV “White Spaces”Unlicensed TV Frequencies
1 Gbps
DSL
Cable Modem (through DOCSIS 3.0)
Fiber-to-the-Premises
Wireless Technology
Technology not widely deployed or standardized
Technology at a mature state of deployment
Technology at conceptual or developmental stage
Max Bitrate
Data Speed Capacity B-PON, G-PON, 10G-PON
NG-PON2, WDM-PON
DOCSIS 3.1
10+ Gbps
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DOWNLOAD TIMES FOR TECHNOLOGIES
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FRAMEWORK FOR OPTIONS
Balance risk, benefit, controlMunicipal broadbandIncumbent upgradePartnerships
Model 1: Private risk & investment Model 2: Public risk & private execution Model 3: Shared risk, investment
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FRAMEWORK FOR OPTIONS
Balance risk, benefit, controlMunicipal broadbandIncumbent upgradePartnerships
Model 1: Private risk & investment Model 2: Public risk & private execution Model 3: Shared risk, investment
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MUNICIPAL MODEL
Maximum risk, reward, control Established strategies Electric utility confers huge benefits Key case studies
Wilson, NC Lafayette, LA Chattanooga, TN Longmont, CO
High risk, limited replicability
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FRAMEWORK FOR OPTIONS
Balance risk, benefit, controlMunicipal broadbandIncumbent upgradePartnerships
Model 1: Private risk & investment Model 2: Public risk & private execution Model 3: Shared risk, investment
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INCUMBENT UPGRADE
Largely catalyzed by prospect of competition (100% overlap with Google Fiber builds) This dynamic on the wane?
Easy upgrade path for cable companies—can deliver solid speed and good competition for FTTP
Telco upgrade path more challenging, requires significant investment
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FRAMEWORK FOR OPTIONS
Balance risk, benefit, controlMunicipal broadbandIncumbent upgradePartnerships
Model 1: Private risk & investment Model 2: Public risk & private execution Model 3: Shared risk, investment
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MODEL 1: PRIVATE RISK, PUBLIC FACILITATION
City facilitates private investment Leading private entity is Google Fiber Strong interest by smaller companies
Reduced risk, no control, potential benefit Facilitation can expand to tax benefits, other economic development incentives
Metronet in Indiana
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MODEL 1 STRATEGY: GROW YOUR ASSETS• Lease public assets such as fiber,
conduit, and real estate• Lease middle-mile fiber• Lease fiber in hard-to-reach areas• Increase existing fiber capacity if
insufficient fiber exists• Facilitate underground
construction• Develop a “dig-once” policy• Maintain future-proof conduit
specifications• Enable all parties to take advantage of
“dig-once”• Place conduit banks in congested areas
• Facilitate aerial construction through access to utility poles• Facilitate make-ready
process to streamline pole access
• Eliminate the need for make-ready
• Facilitate in-building access for wireline infrastructure• Ensure availability of
conduit from street to building
• Ensure installation of in-building pathways and cabling
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MODEL 1 STRATEGY: MAKE DATA AVAILABLE
• Make data available wherever possible• Make GIS data sets available
• Document and publish data regarding available conduit, fiber, and other assets
• Document your fiber assets• Document your conduit assets
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MODEL 1 STRATEGY: MAXIMIZE PROCESS
Process Efficiency• Build broadband into planning and staffing of all relevant
agencies• Streamline and publicize procedures and timeframes for
permitting and inspections• Allow network operators to contract pre-approved third-party
inspectors to speed processes and reduce local burdens
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MODEL 1 CASE STUDY: NCNGN RALEIGH/DURHAM REGION
Offer of existing city fiber Attention to processes Regional collaboration RFP led to agreements with AT&T Google also building in some of these communities
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MODEL 1 CASE STUDY: MESA, AZ
Concern about impact of fiber construction on ROW, city costs Long-term strategy to build assets Focus on four target economic development areas Apple silicon manufacturing lab
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MODEL 1 CASE STUDY: HOLLY SPRINGS, NC Town built robust rings for
internal services Engineered to enable FTTP in
future Highly efficient processes,
alignment Fiber lease agreement with Ting
internet Ting will lease public fiber for
backbone Ting will build to homes &
businesses
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MODEL 1 CASE STUDY: HOWARD COUNTY, MD; ARLINGTON COUNTY, VA; PLEASANT PRAIRIE, WI
Deploy fiber strategically, with focus on key economic development targets Connect to Internet peering point (could be local meet point) Locality to build & own, lease to private partners on open access basis Pricing designed to attract ISPs and non-traditional users such as building owners.
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FRAMEWORK FOR OPTIONS
Balance risk, benefit, controlMunicipal broadbandIncumbent upgradePartnerships
Model 1: Private risk & investmentModel 2: Public risk & private execution Model 3: Shared risk, investment
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MODEL 2: PUBLIC RISK WITH PRIVATE EXECUTION Variation on traditional municipal ownership
High risk Emerging innovation makes use of the traditional P3 structure used in
Europe and increasingly in US Leverages private sector strengths
First time applied to broadband in US—untested in US Guaranteed revenue stream to private partner
Financial risk Political risk
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MODEL 2 CASE STUDY: UTOPIA
Macquarie Capital team Midst of complex process with range of Utopia member communities Turn-key private financing, deployment, operations, and revenue-sharing Guaranteed public funding in the form of a utility fee to all residents
In some communities, will not be a politically viable model (this has been true with some in Utah) In others, can be strong model for buildout
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MODEL 2 CASE STUDY: LAKE OSWEGO, OR
Symmetrical Networks team City Council recently approved negotiation of contract for P3 Private financing and deployment Public service provision (in this case) through potential partnership with local ISP Key to financing is effective public guarantee of the debt
Financial projections suggest low risk, but the risk falls nonetheless to the City
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MODEL 2 CASE STUDY: FRONTIER IN CT
Frontier has made preliminary proposals to a range of CT localities Very promising development
Private financing and deployment 15 year financial commitment by Town
Minimum level of service to all addresses, with opportunity to buy advanced services
Key will be detail regarding enforceable commitments Build out of fiber
Note: upfront risk is minimized but no potential financial upside
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FRAMEWORK FOR OPTIONS
Balance risk, benefit, controlMunicipal broadbandIncumbent upgradePartnerships
Model 1: Private risk & investment Model 2: Public risk & private executionModel 3: Shared risk, investment
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MODEL 3: SHARED RISK
Opportunity for innovationPlays to strengths of both partiesFrom the standpoint of a locality, risk shared but
100% of network benefit realizedPublic benefit does not show up on financial statementsPrivate partner gets financial benefit
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MODEL 3 CASE STUDY: GARRETT COUNTY, MD Underserved rural
areas Fiber construction
strategy for key anchors
Public/private wireless to key target areas
Public risk contained
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MODEL 3 CASE STUDY: URBANA/CHAMPAIGN, IL Private access to cities’ fiber in return for binding commitments, meeting community goals:1. Fiber at gigabit speeds2. Open access – ongoing commitment to wholesale service3. No cherry-picking
• Right of first refusal in event of sale recently exercised to secure successor partner of communities’ choice
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MODEL 3 CASE STUDY: WESTMINSTER, MD
City will own fiber only; lease to partner to operate on open-access basis
Ting Internet selected as partner
Ting shares financing risk; city shares market risk
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MODEL 3 CASE STUDY: HUNTSVILLE, AL
City developed plan for gigabit networking and partnership Announcement February 22 that Google Fiber will lease fiber to be deployed by Huntsville
Utilities We believe that Google Fiber is open to new partnerships of this sort But--the economics for a public utility may not be replicable for a city without an electric
utility
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A FEW CAUTIONS
Be skeptical of rosy projections Be sure that risk as well as opportunity are shared Be aware of dependencies and control Avoid silicon snake oil:
Technology snake oil: technologies whose capabilities are overstated Business snake oil: unrealistic business plans that ask for no risk (or
pretends there is no risk) Unrealistic revenue assumptions
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BROADBAND BOOT CAMP: TUESDAY, DECEMBER 6, 2016
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FACTORS AFFECTING BROADBAND DEVELOPMENT
Internet service provider activity
Availability of
infrastructure
Consumer demand / adoption
Regulations
Return on investme
nt
Existing infrastructu
rePublic
financing
Consumer confidence
Affordability
Consumer savvy
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FRAMEWORK FOR CHANGE
1. Increase urgency
2. Build guiding teams
3. Get the vision right
4. Communicate the vision
5. Enable action
6. Create short-term wins
7. Don’t let up
8. Make it stick
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SESSION CONTEXT
Review a 7 Element Framework for Negotiation
Apply it to a real life storyGive you a chance to interact with others and
test your ideas
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FIRST REFLECTION
With whom am I negotiating?
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A 7 ELEMENT FRAMEWORK FOR NEGOTIATION
ACTION
Commitment Best Alternative
ISSUE CONTENTInterests Options Criteria
PEOPLERelationship Communication
or
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A 7 ELEMENT FRAMEWORK FOR NEGOTIATION
ACTION
Commitment Best Alternative
ISSUE CONTENTInterests Options Criteria
PEOPLERelationship Communication
or
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A 7 ELEMENT FRAMEWORK FOR NEGOTIATION
ACTION
Commitment Best Alternative
ISSUE CONTENTInterests Options Criteria
PEOPLERelationship Communication
or
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NEGOTIATION: WE DO IT ALL THE TIME
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A 7 ELEMENT FRAMEWORK FOR NEGOTIATION
ACTION
Commitment Best Alternative
ISSUE CONTENTInterests Options Criteria
PEOPLERelationship Communication
or
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A 7 ELEMENT FRAMEWORK FOR NEGOTIATION
ACTION
Commitment Best Alternative
ISSUE CONTENTInterests Options Criteria
PEOPLERelationship Communication
or
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A 7 ELEMENT FRAMEWORK FOR NEGOTIATION
ACTION
Commitment Best Alternative
ISSUE CONTENTInterests Options Criteria
PEOPLERelationship Communication
or
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SECOND REFLECTION : ON ADOPTION
I/we would like (specific audience) to be able to (do what) .
I/we would like (group of people) to contribute (action) to this effort.
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A 7 ELEMENT FRAMEWORK FOR NEGOTIATION
ACTION
Commitment Best Alternative
ISSUE CONTENTInterests Options Criteria
PEOPLERelationship Communication
or
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THIRD REFLECTION : ON INTERESTS
I/we want (action) because (hopes / fears / potentials) .
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THIRD REFLECTION : ON INTERESTS
I/we want (action) because (hopes / fears / potentials) .
Therefore: I think I want to negotiate with (another party) .
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THIRD REFLECTION : ON INTERESTS
I/we want (action) because (hopes / fears / potentials) .
Therefore: I think I want to negotiate with (another party) .
The other party wants (action) because (their hopes / fears / potentials) .
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FULL GROUP REFLECTION
What will you take away from this activity?
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BROADBAND BOOT CAMP: TUESDAY, DECEMBER 6, 2016
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BROADBAND BOOT CAMP
Larry Quamme - Village of FerryvilleJerod Hoel - CenturyLink
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PROJECT SCOPE
Project provided the following: Placed six(6) miles of fiber cable from the Seneca Central office to the Ferryville Remote. Purchase of equipment to replace manufactured discontinued equipment in the Ferryville Remote. Removed the Permanent Exhaust status and can provide speeds up to 50mg.
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THE START
Meeting of the Minds January 2014 met with Ferryville residents to discuss slow speeds. After meeting discussed issues with our executive leadership. Decided to move forward with
request for WI Broadband grant. Proposal was submitted for 2014 construction cycle.
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THE DISAPPOINTMENT
July of 2014 original proposal was rejected Proposal was reviewed and it was felt that we (CenturyLink) should resubmit with some
corrections.
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THE HAPPY ENDING
Second proposal was submitted August of 2014 with corrections: Increased CenturyLink match. Created a stronger partnership with Village of Ferryville. Received funds from Grant County Economic Development Board.
Proposal received approval in September of 2014.
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PROJECT CONSTRUCTION
Project was started in late August of 2015 Issues Encountered
Right-of-way issues Completed end of November 2015
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WIN/WIN FOR EVERYONEQ&A
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GRANTS AWARDED TO CHOICETEL
2014 – ChoiceTEL and City of Eagle River Highway 17 project
2014 – ChoiceTEL and City of Eagle River Highway G project
2016 – ChoiceTEL and the Town of Land O’ Lakes – Phase I
2017 – ChoiceTEL and the Town of Land O’ Lake – Phase II
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CHOICETEL AND THE TOWN OF LAND O’ LAKES – PHASE I
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CONNECTING UP
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IRON COUNTY BROADBAND EXPANSIONBroadband Committee Representatives from Iron County Wisconsin and Gogebic County Michigan Representation from Economic Development, Elected Officials, Gogebic Community
College, UW Extension, Interested Citizens Project Partnerships: Iron County Board Iron County Resource Development Association, Inc. Gogebicrange.net Towns of Oma, Mercer and Sherman Public Service Commission Department of Natural Resources Projects: Fixed wireless on three towers in northern Iron County completed in 2016. Fixed wireless on four towers including two DNR fire towers to be completed in 2017 More information: www.ironcountywi.com select the broadband expansion icon [email protected] www.gogebicrange.net
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