1. Connecting Arizona to the Future Presentation to The Governor’s Rural Development Conference August 19, 2005 GOVERNMENT INFORMATION TECHNOLOGY AGENCY (GITA) & ARIZONA TELECOMMUNICATIONS INFORMATION COUNCIL (ATIC)

2. WHAT RURAL BROADBAND CAN DELIVER E-COMMERCE - including connection to world markets, Tele-commuting, and all the benefits of the Information age. E-LEARNING - including vast improvements in student learning, lower costs to deliver education material and teaching, workforce development and lifetime learning. E-Government - including lower cost to deliver government services, a more responsive government, a more accountable government. CONNECTING ARIZONA TO THE FUTURE

3. WHAT THE NUMBERS SAY Arizona is ranked 12 th in Broadband Deployment (2003 TechNet Report) among the States. With full Broadband deployment in rural Arizona, we can expect: An estimated $8.5 Billion increase in GDP (based on studies of the economic impact of Broadband deployment; in 2003 by Gartner Group; in 2003 by CEBR Ltd. - a British company; and in 2001 by Brookings Institute). $100 Million annual increase in revenue for State government 11,500 new jobs, mostly hi-tech (Center for a Sound Economy Report – Broadband deployment impact on Arizona - by Wayne T. Brough, Dec 2003). Increased Access to a Global Economy. CONNECTING ARIZONA TO THE FUTURE

4. Barriers to Broadband Deployment in Rural Arizona Leadership, Planning and Coordination is consistently identified as the single most important factor to successfully deploy broadband. A Lack of cooperation among the telecom providers, and indifference or a lack of public and private cooperation The Return on Investment for Telco’s in Rural Areas is insufficient to support Broadband infrastructure build-out without a Technology breakthrough or subsidy support. Rights-of-Way Access is a significant barrier - including a morass of Federal, tribal, state and local Rights of Way regulations, multiple jurisdictional permitting, lengthy application approvals, unequal and prohibitive fees. We must find a balance between the value of Rights of Way and the value of Broadband based Economic Development. A Lack of Funding subsidies. Arizona lacks sufficient access to E-Rate dollars and to federal grant mechanisms. In addition, Arizona needs to establish additional funding sources, such as its own Broadband Universal Service Fund. when rates alone cannot carry the load of deployment CONNECTING ARIZONA TO THE FUTURE

5. Other Barriers in Arizona : Middle-Mile Fiber Connections Map at right reflects how little fiber reaches anywhere but key cities –Much of the state is surviving on aging copper and microwave plant. Each population center should have 2 paths in & out for reliable telecom –Lack of redundant paths devastates whole regions when outages occur –Limited shared use of existing infrastructure keep costs high Fiber Map - AZ CONNECTING ARIZONA TO THE FUTURE

6. Comparative Examples of other States COLORADO: Fiber as a result of the ongoing MNT Project GEORGIA: Fiber as a result of the 5-year Broadband fiber push CONNECTING ARIZONA TO THE FUTURE

7. Arizona’s Economic Regions

8. CONNECTING ARIZONA TO THE FUTURE Regional Telecom Assets - A Useful Metric

9. Flagstaff, Page, and Williams in Coconino County The Hopi Tribe in Coconino County The Navajo Nation in Coconino County Parker in La Paz County Safford, Pima, and Thatcher in Graham County Show Low, Pinetop-Lakeside, Snowflake, & Taylor in Navajo County Sierra Vista in Cochise County Yuma_CTA Report,FINAL.pdf (235 pages) This report covers muchYuma_CTA Report,FINAL.pdf of Yuma County. Gila Pinal County CTA Report FINAL.pdf (295 pages) This report coversila Pinal County CTA Report FINAL.pdf Gila and Pinal counties. Northern Arizona 2004 Telecom Plan.pdf (181 pages) This GFEC reportorthern Arizona 2004 Telecom Plan.pdf incorporates a needs analysis and plan for Northern Arizona Final Telecom Assessment Report.pdfFinal Telecom Assessment Report.pdf (110 Pages) This report is the final of four reports by Acres-Parcomm commissioned by Dept of Commerce. It is statewide in scope and provides details for the following areas: Community Assessments

10. RECENT INITIATIVES - TISC The Telecommunication Infrastructure Sub-Committee (TISC) was created in October 2004. GITA Director is the Chairman of the Committee Members were appointed from Government, Education and the Public Sectors, including ATIC *. TISC will provide a framework for the strategic planning process and for the development of telecom infrastructure in Arizona, both on a Statewide and Regional basis. TISC will work with regional planning councils (per Commerce Dept. model), and other Statewide councils or committees. CONNECTING ARIZONA TO THE FUTURE * Arizona Telecommunication and Information Council

11. RECENT INITIATIVES - ATIC Managed a DHS Mobile WIFI Grant project in Southern AZ Sponsored Corporation Commission Election Debates Formulated Telecom Recommendations for GCIT Engaged the FCC (October Event) in Discussions specific to Arizona Provided many Informational Events for all of Arizona regarding Cybersecurity, Telecom based Economic Development initiatives, and Best Practices CONNECTING ARIZONA TO THE FUTURE

12. Processing a Request for Information (RFI) February through May 2005 1. In partnership with ATIC, the League of Cities & Towns and the Arizona County Supervisors Association (CSA), an RFI was issued. 2. It Utilized the Regional Community Telecom Assessments as a basis of identifying regional needs. Those assessments are now published at the GITA Website. 3. The RFI provided empirical support for the subsequent policy recommendations for ubiquitous Broadband deployment in Rural Arizona and specific strategies for leveraging government purchases for that purpose. CONNECTING ARIZONA TO THE FUTURE

13. STRATEGIES & INITIATIVES TO ACCOMPLISH THE MISSION Identify Telecommunications as a critical infrastructure. Provide Statewide Telecom Planning and Coordination. Facilitate alternatives for Telecom infrastructure Funding and Financing. Aggregate Demand and Procurement of Telecom Services (TOPAZ). Seek sources of Federal Funding (E-Rate, RUS, DHS, US Commerce Dept. Grants). Provide a Forum to discuss Rights-of-Way Issues. Coordinate Community and Regional Assessments. Educate Policy Makers CONNECTING ARIZONA TO THE FUTURE

14. Policy Recommendations from TISC and ATIC CONNECTING ARIZONA TO THE FUTURE 1.Adopt an Arizona definition of Broadband to be 1MB. 2. Establish a Broadband Authority or Commission as has been done in other states 3. Develop a Statewide Telecom Strategic Plan 4.Convene a series of regional and statewide Telecom Roundtable discussions. Develop a database of current telecom plans and initiatives 5.Expedite access to local, state, federal and tribal rights-of-way. 6. Provide ongoing funding for Community Telecommunications Assessments

15. Policy Recommendations from TISC and ATIC (continued) CONNECTING ARIZONA TO THE FUTURE 7. Provide state support to research funding sources and write grant proposals 8. Implement a strategy to facilitate increased use of the federal E-rate subsidies 9. Elevate the Telecommunications Infrastructure Subcommittee to a stand alone and funded entity 10. Expand the role of the Arizona Corporation Commission in broadband deployment by modifying the current Arizona Universal Service Fund or creating a new fund to support broadband deployment. 11. Oppose legislative actions that erect explicit or de facto barriers to municipal participation in Broadband deployment.

16. From GITA - Other Activities related to Broadband Deployment CONNECTING ARIZONA TO THE FUTURE 1.CANAMEX CORRIDOR AS A SMART CORRIDOR 2.OVERSIGHT OF DHS WIFI GRANT IN SOUTHERN ARIZONA 3.TRIBAL INTERFACE 4.SUPPORT OF E-RATE PROCESSES IN ARIZONA 5.OVERSIGHT OF AGENCY TELECOM PROJECT INVESTMENT JUSTIFICATION (PIJ)

17. DHS Grant Area Geographic area of OHS Grant. Approximately 30 miles of Canamex Corridor along Interstate 19, basically from Green Valley on the North to Rio Rico on the South. DHS WIFI GRANT HIGHLIGHTS

18. Anticipated Results of WIFI Project CONNECTING ARIZONA TO THE FUTURE A 30-mile stretch of the CANAMEX Corridor near Mexico will be “secured” as a First Responder WIFI “hot spot” enabling “WIFI ready” vehicles or devices moving through or in the area, to have mobile access to the Internet at broadband speeds (> 1Mbps). First responders will be equipped to take advantage of this mobile “hot spot.” Public and private enterprises and especially schools will also have similar access. Post Grant “sustainability” Replication in many other locations in Arizona