SWIFT/ITPA update Roger Watt Deputy Reeve, Ashfield-Colborne-Wawanosh Township Councillor, Huron County August, 2016

Huron County 76% well-served, 24% under-served … provided mainly by local ITPA members (data 2-5 yrs old)

SCF funding APPROVED 2016-07 … $89.7M federal (33¢) $89.7M provincial (33¢) $18M municipalities (7¢) + $71.7M providers (27¢)

Highlights of SWIFT/ITPA meeting 2016-07-15 ... SWIFT's answers to ITPA's 22 questions centred around the intent of the SWIFT project ... to create a forward-looking and future-proof network by connecting the region via ultra-high- speed fibre, through a transparent, competitive procurement process that subsidizes providers to build open-access network infrastructure where all qualified providers may compete to provide services. Priorities will be determined by SWIFT members in consultation with qualified service providers.

Details of the project will depend on Highlights, contd ... Details of the project will depend on contribution agreements with federal and provincial governments, input from the SWIFT Board of Directors and members, and the outcome of the procurement process with providers.

Highlights, contd ... SWIFT will develop a policy on overbuilds in consultation with service providers and SWIFT members/users. Overbuilding will only occur where access to incumbent infrastructure is not openly accessible. The priority is to leverage existing infrastructure, not replicate it.

highlights, contd … The goal is to work collaboratively with service providers, who will build, own and operate the network. After the first seven years of operation, ownership of contributed network assets will revert to the contributors. The SWIFT board will retain enough control to hold the providers to their commitments.

Highlights, contd ... SWIFT will be issuing an RFQ to all providers to request the data required to complete a gap analysis as part of a pre-qualification process in advance of issuing the RFPs. Only those providers who pre-qualify will be permitted to respond to the RFPs. Through consultations and data received during the Request for Qualification process, providers will have an opportunity to shape the project to improve broadband access across the region.

Highlights, contd ... The assets and services involved in the RFP process will be determined through consultation with qualified providers and members of SWIFT. Public-sector organizations that participate in SWIFT will select providers based on their ability to fulfill the requirements set out in the RFPs. SWIFT’s goals is to select proponents who offer the largest infrastructure expansions and deliver the best services, at the lowest prices, within a given coverage area. If the incumbent provider is the successful proponent in an RFP for a public-sector site, then no additional capacity will be built (unless the site has specific need for path redundancy and/or diversity).

Highlights, contd ... Only fibre optic connectivity will be subsidized … ie, FTTP, and perhaps the fibre part of FTTN/VDSL, but not wireless/etc. However, providers of other access media would be encouraged to interconnect with SWIFT, to reduce their backhaul costs and improve their backhaul performance.

outcome … ITPA members seemed to be encouraged by the answers and the importance of participating in the RFQ; discussion led to more precise re-statements of objectives. EG: Blackburn News item, 2916-08-01 ... TCC General Manager Rob Van Aiken says the agreement seems to recognize the work that the independent providers have already done and will also provide them with an opportunity to be involved in the project going forward. Van Aiken says he also hopes local providers and county officials will have a say in how money is spent in Huron County. Warden Paul Gowing says now that the Federal and Provincial governments are contributing to the program it makes sense for Huron County to be in.

summary … The SWIFT core/aggregation/access network will be an enormous asset for local prosperity, enabling future end-to-end applications in telemedicine, stay- at-home health care, education, economic and community development, municipal services, etc. SWIFT/ITPA discussion has moved things in directions with which the local providers seem more comforable, and I expect they will be participants in the RFQ process. This, in my opinion, is the win/win outcome for which Huron County Council has been waiting. The time has come to commit to participating in SWIFT.

best gue$timates … Well-served connectivity to the last 24% of Huron: $20M; further study required. Huron’s probable share of the $18M municipal portion (7%) of the SWIFT network costs: $680K, over five years. Does that mean that SWIFT will spend$9.7M on network development in Huron? Too soon to say; depends on the outcome of the RFQ and the RFPs.

Next steps … SWIFT Inc must consult with govt, members, broader- community stakeholders, and potential providers to … negotiate contribution agreements with the federal and provincial governments, defining the T&Cs under which SWIFT Inc will be accountable, prepare and issue a Request For Qualifications to all providers for the data needed to identify the gaps in service quality, determine what can be contributed and what must be built, clarify municipal priorities, identify the best-qualified providers, prepare and issue Requests For Proposals, analyze responses, select providers to construct and operate the network. Each of the three is many months of work.