Running more bandwidth for less dollars State of Arkansas Network Upgrades

Next Generation State Network Replace current State Network technology (Frame Relay and ATM) used since the early 1990’s Bid opened on October 11, 2010 Previously delayed bidding a Multi Protocol Label Switching (MPLS) network because of cost. Quotes were 10 – 12% higher than current costs. Wide Area Network (WAN) Ethernet is now more cost effective than other technologies DIS bid a vendor a MPLS backbone with WAN Ethernet and Point to Point Protocol (PPP) connectivity to end sites 10/22/10DIS ARE-ON Update1

More cost effective bandwidth with many more bandwidth options More Quality of Service (QoS) options (min 4) More robust and redundant backbone Scheduled to award November 2010 Will require buildout of vendor networks to meet state needs DIS will work with vendors to schedule conversions as vendor networks are ready 10/22/10DIS ARE-ON Update2

Convert an area at a time to reduce travel time to agency sites and disconnect existing leased backbone circuits as soon as clear Should take months to complete move after start date Site growth can be managed outside of conversion schedule if vendor is ready Replace rented site routers with next generation devices as each site is converted 10/22/10DIS ARE-ON Update3

Consumer Class Internet Provides high bandwidth solutions with lower service level options for non-business critical Internet applications Bid issued and will open on November 1, 2010 Can be used to aggregate Internet traffic between business critical (State Network) and non-critical (Consumer Class Internet) based on destination IP Aggregation achieved in the site router or in a device that provides for ease of user administration, failover, and dashboard features 10/22/10DIS ARE-ON Update4

A BEE (Bandwidth for Educational Enhancement) Initiative project started with six (6) K-12 schools to test concept 10/22/10DIS ARE-ON Update5

Will test ECESSA and FatPipe aggregation devices and an appliance from M86 (Internet content filter provider) for content filtering Some agencies may use service as only Internet service or for public use Internet access (example - Parks and Tourism) 10/22/10DIS ARE-ON Update6

State Video Network State video network in place since early 1990’s The bridging and scheduling has been outsourced to AT&T since inception and is now in the third generation Currently providing approximately 26,000 site hours/month with 550 end point systems Current contract has one 12 month extension remaining as of February 2011 Concern about high cost of current bridging and scheduling with our vendor Today our vendor has bridges in four (4) Central Offices managing both IP and 85 non-IP (H.320) video systems 10/22/10DIS ARE-ON Update7

With one large bridge and no H.320 systems the costs could be significantly reduced Most H.320 systems are relatively new and can handle IP video. Providing for H.320 bridging will increase the bridging hardware cost by 40% Should DIS rebid soon (E-rate available) or purchase (no E-rate) with a proposed cutover in June 2011 (after spring school term) DIS applied for $500K RUS grant Awarded grant could be used to reduce purchase price 10/22/10DIS ARE-ON Update8

Owning would allow for more rate flexibility to accommodate new video services If purchased, DIS would need to plan a revenue stream for four-five (4-5) years to cover investment A video sub-committee of the State Network Working Group will address future needs and direction of the State Video Network The group represents current video users and is chaired by Solomon Graves from the Arkansas Parole Board 10/22/10DIS ARE-ON Update9