Reducing the Cost of A Gigabit Network In Your Community FCC Workshop on the Gigabit City Challenge Heather Burnett Gold President, FTTH Council Americas March 27,

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Major Components of Network Costs Capital Costs – Construction – Network Equipment – Fees and other (i.e. land and buildings, legal costs) – Funding Operating costs – Operating and Maintenance – Acquisition of Video Content – Backhaul – Franchise Fees 3

Community Inventory of Assets Communities should leverage assets that are readily available, obtainable and valuable, which will reduce the overall costs The first step is to create an inventory of such assets, which can include those that belong to the community or that the community can influence Count both physical assets and “soft” assets which can reduce development costs and build awareness – Civic groups – Educational institutions – IT/GIS professionals 4

Examples of Community Assets Franchise Agreements/Rights of Way – offer favorable terms and expedite/reduce cost of conduit placement Permitting/Construction Rules - provide expedited treatment Municipally owned utilities – assets, customer base, back office operations can be leveraged for partnerships Land/Buildings Existing mapping (GIS) resources Ongoing or pending local and or state capital projects – can tie in fiber builds to water, road construction etc Existing vendor relationships – leveraged to provide enhanced or expanded services Ongoing/planned first responder communications upgrades – for economies of scale IT professionals Educational institutions – sources of student labor and expertise Civic groups/volunteers – source of support and labor for community oriented activities 5

Examples of How the Federal Government Can Reduce Costs Federal Communications Commission – Pole Attachments – Access to Video Programming/Retransmission – Funding in certain situations (USF: CAF, eRate, Rural Health) – Establish Best Practices Other Current/Potential Federal Activities – Access to Rights of Way on Federal lands – Funding in certain situations (RUS, EDA) – Access to Federal buildings (GSA) – Collaboration with communities when Federal bandwidth upgrades are considered (GSA) 6

Examples of State Broadband Leadership: Models for Federal Coordination? Minnesota – Implement the state’s infrastructure development program – Provide consultation to (local) governments in connection with broadband projects – Encourage public-private partnerships – Monitor the broadband development efforts of other states and at the federal level – Serve as the “information clearinghouse” for federal programs – DoT to maintain a “fiber collaboration” database on its website to provide broadband providers with advance notice of upcoming DoT construction projects. 7

Examples of State Broadband Leadership: Models for Federal Coordination? Wisconsin – Playbook for Broadband Progress – Purpose is to establish "specific replicable initiatives and actions that: (1) are realistic and possible within available resources; (2) have enough consensus to be successfully implemented; and (3) are consistent with the needs of Wisconsin.” – Identify barriers preventing the leasing of available space on government- owned towers and other government-owned facilities to private broadband providers. Streamline leasing through agency coordination, rule changes, or possibly through legislation – Creation of a information database to facilitate access to appropriate government-owned towers and facilities – Suggests that the state "explore" targeted tax incentives to encourage broadband expansion. 8

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