1 Merit Network Last Mile Fiber By many means necessary… Jim Moran Outreach Coordinator

2 Slide 2 Merit Network Overview...  Founded 1966 The Michigan Education Research Information Triad (MERIT) formed in 1966 because “significant benefits might be gained from sharing computing resources via an electronic linkage…”  A non-profit, 501(c)3 corporation governed by Michigan’s state universities  NSFNET backbone; joint project with IBM, and MCI,  Expanded beyond governing members, 1990’s  MichNet Statewide Dial-in Network,  Among the first GigaPOPs, 1999  Facilities-based network, 2000+

3 Slide 3 Merit Network Overview...  A non-profit, 501(c)3 corporation governed by Michigan’s state universities

4 Slide 4 Merit Network Overview...  A non-profit, 501(c)3 corporation governed by Michigan’s state universities; among the 53%

5 Slide 5 Merit Network Overview...  A non-profit, 501(c)3 corporation governed by Michigan’s state universities; among the 53%  No state subsidies

6 Slide 6 Merit Network Overview...  A non-profit, 501(c)3 corporation governed by Michigan’s state universities; among the 53%  No state subsidies  No mandate for state educational organizations to connect through Merit

7 Slide 7 Merit Network Overview...  A non-profit, 501(c)3 corporation governed by Michigan’s state universities; among the 53%  No state subsidies  No mandate for state educational organizations to connect through Merit  Operate on a for-fee basis; compete with commercial ISPs

8 Slide 8 Merit Network Overview...  A non-profit, 501(c)3 corporation governed by Michigan’s state universities; among the 53%  No state subsidies  No mandate for state educational organizations to connect through Merit  Operate on a for-fee basis; compete with commercial ISPs; eligible E-Rate provider

9 Slide 9 Merit Network Overview...  A non-profit, 501(c)3 corporation governed by Michigan’s state universities; among the 53%  No state subsidies  No mandate for state educational organizations to connect through Merit  Operate on a for-fee basis; compete with commercial ISPs; eligible E-Rate provider Market share  12 0f 13 state universities  75% other highered orgs  ~50% K12s  Libraries, government, health care

10 Slide 10 Relevant Michigan Telecom Law... Sec (1) Educational institutions shall have the authority to own, construct, and operate a telecommunication system or to purchase telecommunication services or facilities from an entity capable of providing the service or facility. (6) Except for a state institution of higher education, if an educational institution has excess capacity, it may sell the excess capacity subject to subsection (3) and to all of the following: (a) The amount of capacity sold shall not exceed 25% of the institution’s total capacity. (b) The capacity shall not be sold below the total service long run incremental cost of the provider of basic local exchange service in the service area of the educational institution. If there is more than 1 provider in the service area, the educational institution shall use the lowest total service long run incremental cost.

11 Slide 11 Relevant Michigan Telecom Law... Sec (1) Educational institutions shall have the authority to own, construct, and operate a telecommunication system or to purchase telecommunication services or facilities from an entity capable of providing the service or facility. (6) Except for a state institution of higher education, if an educational institution has excess capacity, it may sell the excess capacity subject to subsection (3) and to all of the following: (a) The amount of capacity sold shall not exceed 25% of the institution’s total capacity. (b) The capacity shall not be sold below the total service long run incremental cost of the provider of basic local exchange service in the service area of the educational institution. If there is more than 1 provider in the service area, the educational institution shall use the lowest total service long run incremental cost.

12 Slide 12 Facilities- based Backbone Network Initiative

13 Slide 13 Facilities-based Backbone Network Initiative

14 Slide 14 Facilities-based Backbone Network Initiative GOVERNING MEMBERS ONLY

15 Slide 15 Extending the Facilities-based Network…

16 Slide 16 Extending the Facilities-based Network…  Leverage K12 Fiber  Leverage governing member infrastructure  Leverage the backbone infrastructure  “Finance” required lateral construction

17 Slide 17 Leveraging K12 Fiber…

18 Slide 18 Leveraging K12 Fiber... K12s too found cost control & extensibility in facilities-based, self- provisioned networks within county intermediate units and large districts; physical plants contained within districts  Merit IRU’d/leased “excess capacity” and integrated into backbone  Collaboration/partnership with these K12s strengthened relationships  Provided opportunity to lease capacity within districts to reach other members

19 Slide 19 Leveraging K12 Fiber... Muskegon ISD  Baker College Muskegon  Muskegon Community College  WAN site for GVSU Jackson ISD  Jackson Community College  Foote Hospital  Spring Arbor University Calhoun ISD  Kellogg Community College  Albion College  Olivet College  Willard Public Library Battle Creek Genesee ISD  Mott Community College  Baker College Flint  Kettering University  University of Michigan Flint

20 Slide 20 Leveraging K12 Fiber... Ottawa ISD  Davenport University Holland  Hope College Washtenaw ISD  Washtenaw Community College  Eastern Michigan University Gratiot-Isabella ISD (MMNET)  Alma College  Montcalm Community College  Montcalm ISD  Mid-Michigan Medical Shiawassee ISD  Baker College Owosso Southfield Public Schools  Lawrence Technological University Saginaw Public Schools  Davenport University Saginaw

21 Slide 21 Leveraging governing member infrastructure... Wayne State University (fiber)  University Prep Charter School Northern Michigan University (wireless)  Gwinn Community Schools Wayne State University (wireless)  Baker College Allen Park  University of Detroit Mercy, Internet and WAN  Marygrove College

22 Slide 22 Leveraging the backbone... Metro Detroit Ring  College for Creative Studies  Detroit Community High School  ORION link Southfield-Oakland University- Flint  Baker College Auburn Hills  MSU Management Troy Metro Grand Rapids Ring  Grand Rapids Public Schols  Aquinas College Metro Lansing Ring  Grand Rapids Public Schols  Aquinas College O A D M Metro Ring member site

23 Slide 23 Financing lateral construction...  One-time capital expense (i.e., Baker)  Merit “financing” from strategic loan fund  Framing cost in terms of annual access fees (comparable to lease- line fees)  USF eligibility and cost reduction after contract term

24 Slide 24 Facilities-based connections Enable….  higher-bandwidth, lower-cost WAN connections for multiple, geographically distant campuses

25 Slide 25 Facilities-based connections Enable….  higher-bandwidth, lower-cost WAN connections for multiple, geographically distant campuses

26 Slide 26 Facilities-based connections Enable….  higher-bandwidth, lower-cost WAN connections for multiple, geographically distant campuses  distance education among Merit members

27 Slide 27 Facilities-based connections Enable….  higher-bandwidth, lower-cost WAN connections for multiple, geographically distant campuses  distance education among Merit members  shared administrative systems among Merit members, particularly K12s & Libs

28 Slide 28 Facilities-based connections Enable….  higher-bandwidth, lower-cost WAN connections for multiple, geographically distant campuses  distance education among Merit members  shared administrative systems among Merit members, particularly K12s & Libs  joint research among Merit members

29 Slide 29 Facilities-based connections Enable….  higher-bandwidth, lower-cost WAN connections for multiple, geographically distant campuses  distance education among Merit members  shared administrative systems among Merit members, particularly K12s & Libs  joint research among Merit members  opportunities for Merit members to be content providers to other members

30 Slide 30 Questions...