Economic Development Council Broadband Report Commissioner Andy Tobin Arizona Corporation Commission

Four out of 10 Schools Lacks Adequate Internet Access There is a clean noticeable digital divide between urban and rural Arizona This problem negatively impacts schools, hospitals, public safety, commerce and rural Arizonan students which spurred Governor Ducey to announce a broadband initiative “Too many students, specifically in our rural areas are missing out. Let’s fix this, by connecting these rural schools to high-speed internet. And let’s couple it with a statewide computer science and coding initiative. This session, let’s get break the firewall and get these kids connected.” – Governor Doug Ducey, 2017 State of the State

How big is the Gap that needs to be closed? Only one out of ten schools have affordable access in rural Arizona In 2015, only 63% of school in Arizona met the internet access standard Of the 37% not meeting the standard, 63% are located in rural communities Only 6% of schools met the national affordability benchmarks, ranging between $3.00 per megabit per second (Mbps) and $14.00 Mbps Many pay over $500.00 per megabit per second The gap is best described as the “Last Mile” in the fiber which is installed in difficult to reach communities and geographical challenges that are not common obstacles in urban areas

The Commission Answered the Governor’s Call and helped create the Arizona for Broadband Education Initiative Over $100 Million in resources available for broadband construction to remote schools and libraries This program will, and has, generated an estimated $8- $13 million which will provide enough state matching funds to receive any where from $100-$150 million in federal E-Rate funds To accomplish this state match, the Arizona Universal Service Fund (AUSF) was modified to generate one-time funding of $8 million needed to create the federal matching dollars The matching funds will cover special construction costs of new or enhanced broadband infrastructure for schools and libraries at little to no cost to them The program is limited to one year to take advantage of the one-time federal funding opportunities given by the Federal Communication Commission E-Rate is a federal program that providers discounts to schools and libraries for affordable telecommunications and internet access.

Nearly 100,000 Arizona Students Will Benefit from the Arizona Broadband for Education Initiative As of right now, there have been over 67,000 students served so far and the goal is to serve 29,000 more students in the next year of the initiative Out of the 15 counties in Arizona, 13 counties have benefited from this program and had funds designated to their communities Over 106 schools and libraries have received funds in the 2017-2018 E- Rate approvals

Schools and Libraries Should Start Planning Now Work with Milan Eaton at the Department of Education to help your district or county begin a E-Rate Finance Application This is the first step to drawing down state and federal funding Once the broadband project is defined, the school or library will issue an RFP this fall and select the vendor/provider that meets their internet needs while reducing their overall costs. The state will appropriate state matching funds for the project upon project approval Creating a county wide school and library consortium is an easy way to leverage state and federal broadband construction funding (Milan Eaton can get you started)

Updating the Statewide Broadband Map is Key to Building Infrastructure The next step of this initiative is to work with telecommunication carriers to gather data on where existing fiber and infrastructure is, internet speed, and how far is that infrastructure from where it is needed most On June 29, 2017, the ACC, and several state agencies held a meeting with all telecommunication carriers asking for this data Based on this information, a statewide map will show which schools and libraries are critical in building out digital infrastructure

Work is Getting Done Across the State as We Speak At the moment, there are five providers that have sent us their data on their network ADOA is holding stakeholder meetings across the state to receive valuable input and engage communities on the initiative Commission staff and agency staffers are working with telecomm providers to receive the best possible data for the state wide map

Extensive Stakeholder Engagement is Needed to Move the Statewide Broadband Initiative Forward This month, the state will follow up with broadband providers that have not submitted their data for the map Milan Eaton with ADE will be working with state and county officials to identify and assist schools and libraries that will benefit the most from the Arizona Broadband for Education Initiative Schools and Libraries need to identity broadband projects by December 2017

There is Limited Time to Get Millions for Your Community, It is Time to Act! The federal funds will only be available until 2019 and then will be discontinued The state has stepped up with $3 million to allow our most remote areas to leverage available dollars from the program Chances are your schools and libraries are overpaying for slower internet access This program will not address those unnecessary costs but will enable competition in those areas which will drive prices back into the market

For More Information on the Arizona Broadband for Education Initiative: Milan Eaton – Arizona Department of Education, State E-Rate Director Application Questions Milan.Eaton@azed.gov Nick Loper – Arizona Corporation Commission, Deputy Policy Advisor to Commissioner Tobin AUSF and state funding questions nloper@azcc.gov