Final Report
Commonwealth's Broadband Roundtable
Presented to:
Governor Timothy M. Kaine
September 9, 2008
Williamsburg, Virginia
COMMONWEALTH of VIRGINIA
Office of the Governor
September 9, 2008
The Honorable Timothy M. Kaine
Governor, Commonwealth of Virginia
1111 E. Broad Street, 3rd Floor
Richmond, VA 23219
Dear Governor Kaine:
On behalf of all the members of the Commonwealth Broadband Roundtable, we are pleased to present this final report and an online toolkit designed to spur local and regional action to address your goal of providing universal access to broadband services for Virginia businesses by 2010.
Since June, 2007, the Roundtable has been diligently working through subcommittees to research and gather information on a variety of topics, including Broadband Adoption Measurement, Broadband Technologies, Innovative Applications, Business Models, and Community Outreach.
In order to provide a readily accessible, easy-to-use product, we published an online “toolkit” that features information on broadband-dependent applications, the characteristics of current and emerging technologies worthy of investment, and case studies from localities across the Commonwealth that have successfully implemented broadband deployment in their communities.
With the help of the members of the Roundtable and others, we have also made great strides in mapping current broadband availability in the Commonwealth, and now have a more comprehensive map of availability for existing businesses, economic development prospects and homes across the state. We are hopeful that these materials will provide the assistance many localities need as they make decisions and work to deploy broadband in their communities. We will continue to market this free toolkit across the state to make local decision-makers aware of this important information.
As co-chairs of the Broadband Roundtable, we would like to thank you for your leadership on this very important topic, and we look forward to continuing to work with you as we strive to provide affordable access to broadband to all of the businesses and citizens of the Commonwealth.Sincerely,
 |
 |
| Mark R. Warner | Annesh P. Chopra |
In addition to all of the members who have given generously of their time and talents, Roundtable staff would like to extend their gratitude to the following individuals and organizations for their invaluable contributions:
Broadband Work Group Chairs and Legislative Advisors:
Broadband Adoption
Co-chairs, Michael Powell, Tekedra Jefferson
Legislative Advisors, Congressman Rob Wittman and State Senator Richard Stuart
Broadband Applications
Co-Chairs, Nancy Cooley, Jeff Reed
Legislative Advisor, Delegate Jim Scott
Broadband Business Models
Co-chairs, Ron Carlee, Robin Sullenberger
Legislative Advisor, Senator Phillip Puckett
Outreach
Co-chairs, Sandie Terry, Heather Gold, Bert Schmidt
Technology
Co-chairs, Bob Kahn, Raj Singh
Legislative Advisor, Joe May
Ted Rappaport, University of Texas – Austin; Lem Stewart, Steve Marzolf and Dan Widener, VITA; Virginia Telecommunications Industry Association; Virginia Cable Telecommunications Association; The Center for Rural Virginia; Southern Virginia Higher Education Center and the Southern Virginia Education Network; John Mehfoud, Virginia Economic Development Partnership; The staff of Virginia Interactive; Southwestern Virginia Technology Council; The Virginia Tobacco Commission; Virginia Resources Authority, Southwest Virginia Higher Education Center; John Spencer, Appomattox; Bryan David, Region 2000; Virginia Association of Counties and Virginia Municipal League; and the members and staff of the Joint Commission on Technology and Science.
Acknowledgements
Table of Contents
Roundtable Membership
Roundtable Activities
Report in Brief
Introduction and Accomplishments
Working Group Reports
Broadband Measurement - Availability and Adoption
Technology
Applications
Business Models - The Role of Leadership
Business Models - Community Took Kit
Outreach
Appendix One: Technology Attribute Matrix
Mark Warner, Former Governor of Virginia, Co-Chair
Aneesh Chopra, Virginia Secretary of Technology, Co-Chair
Gary Allen, Virginia Department of Transportation
Jeff Anderson, Virginia Economic Development Partnership
Sheryl Bailey, Virginia Resources Authority
Scott Bashore, Loudoun County
Robert Brammer, Northrop Grumman
Erv Blythe, Virginia Tech
Ron Carlee, Arlington County
Elaine Carver, Roanoke County
Cindy Cave, Prince George County
William Cleveland, Goochland County
Hap Connors, Spotsylvania County
Nancy Cooley, Old Dominion University
Michael Cooper, Cumberland County
Ben Davenport, Mid-Atlantic Broadband Board of Directors
Amir Dehdashty, Hughes Network Systems
Tad Deriso, Mid-Atlantic Broadband Cooperative
Kelley Dunne, Digital Bridge Communications
Constance McGeorge, Governor’s Office of Commonwealth Preparedness
Luis Fiallo, China Telecom-USA
Ron Flanary, LENOWISCO Planning District Commission
Gerald Gallimore, Citizens Telephone Cooperative
John Goggin, CISCO
Heather Gold, XO Communications
Debbie Goldman, Communications Workers of America
Marc Gonzalez, Diversified Information Technology
Victor Gosnell, Bedford County Public Schools
Dave House, Tiamet Communications, LLC
David Hudgins, Old Dominion Electric Cooperative
Tekedra Jefferson, AOL
Robert Kahn, CNRI
Jim Kelley, Bristol Virginia Utilities-OptiNet
Joe King, City of Danville
Rayson Lim, Intel
Warren Manuel, Virginia Broadband, LLC
Delegate Joe May, Leesburg (33rd District)
Gary McCollum, Cox Communications
Mary McDermott, Ntelos
Mike Moon, City of Manassas
Subodh Nayar, PLT
John Nicol, Microsoft
Curt Pendleton, Comcast Communications
Bill Pennell, Lancaster County
Michael Powell, Providence Equity Partners (Former FCC Chairman)
Senator Phillip Puckett, Tazewell (38th District)
Lee Queen, Conterra
Ted Rappaport, University of Texas-Austin
Mark Rawlyk, Nortel
Jeff Reed, Virginia Tech
Harry Schickling, Harnan Consulting
Bert Schmidt, WHRO
Rich Schollmann, Embarq
Jim Scott, Delegate, Merrifield (53rd District)
Kelly Shaw, Pure Internet
Bill Shelton, Virginia Department of Housing and Community Development
Raj Singh, Telcom Ventures
Glen Sink, Center for Rural Virginia
Sam Simon, Issue Dynamics
Nelson Stevens, Southern Virginia Higher Education Center
Lem Stewart, Virginia Information Technologies Agency
Robin Sullenberger, Shenandoah Valley Partnership
Eugene Sullivan, UVA Health System - Office of Telemedicine
Joe Syslo, Mathews County Chamber
Ali Tabassi, Sprint
Sandie Terry, Franklin County
Tom Trobridge, City of Alexandria
Richard Stuart, Senator, Montross (28th District)
Robert Woltz, Verizon-Virginia
Since its inception in September 2007, the Broadband Roundtable members have traversed the Commonwealth meeting with local and regional leaders and collecting information about ongoing and emerging broadband activities and documenting community needs and barriers to the deployment process.
Roundtable meetings were held across the Commonwealth – Chantilly, Eastern Shore, Richmond, Abingdon, South Boston, and Appomattox. At each meeting, members were briefed on broadband activities in the area and received input from local leaders and private citizens on the deployment challenges and opportunities that remain.
During these sessions it became abundantly clear that community leaders (local and regional) continue to search for assistance with making informed decisions regarding broadband technologies, funding and legal options, and sustainability. To answer this need, members of the Broadband Roundtable determined that the Commonwealth would be best served by the creation of an online “toolkit” for community-led broadband initiatives to de-mystify the broadband decision making and deployment process. Drawing upon the strength of its members, the group has produced an online, interactive toolkit and resources that address not only technology and legal issues, but also assist in the identification of broadband funding sources and often overlooked pockets of “government influenced’ funding that can be leveraged to reduce the community capital outlay. The toolkit is available at www.otpba.vi.virginia.gov.
In addition, the Roundtable formed work groups to focus on specific elements of the broadband equation – measurement (adoption and availability), technology, applications, business models, and outreach. The charge to each work group was to examine the challenges and opportunities associated with the broadband planning and deployment process as it related to their individual focus area and to develop creative resources, strategies, projects, and/or policy initiatives that, if brought to fruition, would ease the economic and/or human capital requirements of a broadband deployment.
During the course of the year, the workgroups collaborated to publish an impressive compendium of topic-specific resources, initiatives, and recommendations that will provide the basis for future broadband initiatives in the Commonwealth.
Observation #1: Growing sentiment in the Commonwealth that universal access to affordable broadband is a prerequisite for economic growth, educational excellence, healthcare reform, and job creation; crux of concern is the growing geographically imposed digital divide as many rural communities continue to lack access to affordable broadband infrastructure
Observation #2: Despite $BNs of private sector broadband infrastructure investment in the Commonwealth over the past decade, myriad communities rely on public investment to address coverage gaps; Virginia’s Tobacco Commission leads the way in taking responsibility for $85+M invested to deploy 1,600+ miles of fiber-optic backbone across communities in the Southside and Southwest regions of the Commonwealth
Observation #3: Public sector initiatives deliver results as nearly every major industrial park in the Commonwealth is now broadband accessible (all but 15); that said, local administrators continue to cite concerns by small and/or home-based businesses lacking affordable, reliable access
Observation #4: Governor Kaine seeks to address remaining (un-served) business sites by calling for universal business access to broadband services by 2010 in his Economic Development Strategic Plan; biggest challenge remaining the “last-mile” problem connecting small and home-based businesses to broadband
Observation #5: At the heart of the matter is the assumption that capital investment required to serve geographically dispersed communities exceeds the likely private market returns on the sale of broadband access; by any account, strategies to improve private sector return on capital investment can stimulate market solutions to close coverage gaps
Observation #6: Contending with coverage gaps largely a matter of balancing public policy with private sector investment; though federal and state policy makers can contribute to a solution, local and often regional leaders sit at the center of decisions capable of enticing broadband service providers
Observation #7: A baseline requirement is to have a clear picture of coverage gaps based on address-level data reported at the county level; right approach is to develop market-friendly reporting mechanisms to accurately identify underserved communities that deserve public sector investment priority
Observation #8: Virginia’s public policy framework (largely) sufficient to facilitate broadband coverage in underserved communities; key challenge for local and regional leaders is access to implementation support that can assist in structuring a “deal” to attract available public sector capital, stimulate application investments and expedite decision-making
Observation #9: Broadband Roundtable convened to develop a “toolkit” capable of assisting communities with broadband planning and deployment decisions; key deliverables include mapping of broadband service in excess of 768 kbps, an inventory of public-related applications capable of stimulating demand, a user-friendly technology matrix to simplify platform decisions, and an online work-sheet that inventories public and private investment options to expedite last-mile service delivery
Observation #10: While Roundtable’s formal work is ending, key priority remains to empower local and regional leaders through the use of the toolkit; Kaine Administration to sustain public policy attention on broadband coverage through codified Office of Telework Promotion and Broadband Assistance
On June 13, 2007, Governor Kaine tasked former Governor Mark Warner and Technology Secretary Aneesh Chopra to lead a broad group of stakeholders, a Broadband Roundtable, to advance his goal of providing universal access to broadband services for all Virginia businesses by 2010. This initiative is a key component of the Governor’s Economic Development Strategic Plan released in September, 2006 and furthered by the signing of Executive Order 35 to create the office of Telework Promotion and Broadband Assistance, also in September, 2006.
Why is broadband such a priority? High speed telecommunications services are essential to economic growth and can dramatically increase civic participation, health care access, education, job training, public safety and other needed services. Despite a $300+ million investment in Virginia’s infrastructure for broadband services since 1998 (primarily through the FCC’s “E-Rate” program and the Virginia Tobacco Indemnification and Community Revitalization Commission), too many Virginians lack access to low-cost broadband services. An analysis of Federal Communications Commission 2006 survey data revealed that less than half of Virginia’s households utilize broadband services. More troubling, America continues to slip in global rankings measuring broadband penetration falling to 15th in the December 2006 report issued by the Organization for Economic Co-operation and Development.
A variety of factors – geography, population, laws and regulation – contribute to an environment where the private sector struggles with the business case for additional investment to close these coverage gaps. In general, sparsely populated areas have not attracted the same level of investment and innovation as more dense urban areas.
To address these challenges, Governor Kaine challenged the Broadband Roundtable with the following goal: to provide localities interested in providing (or facilitating the delivery of) broadband access to constituents with a resource to accelerate implementation heretofore referenced as the “blueprint”. In addition, the Roundtable was instructed to remain focused on three principles - long-term sustainability, public-private partnership, and community-driven strategy.
Co-Chairs Warner and Chopra established five working groups to address this challenge and are pleased to report considerable progress toward the fulfillment of the mission:
Documenting broadband availability is a daunting challenge at best. In the post-9/11 security environment, access to data relating to broadband infrastructure (now deemed to be “critical” infrastructure) has become so difficult that many states have conceded the process – citing that it is just too difficult to accomplish without significant investment.
In recent days, the exercise has become even more complicated by a rising debate about exactly “what speed” represents the minimum threshold for a service to be considered “broadband”.
Repeatedly, members of the Roundtable were reminded of the critical role mapping data plays in the ability to make strategic broadband planning and investment decisions…a process now driven by anecdotal information and locally collected survey data.
As a result of these conversations, the Roundtable launched a Commonwealth-wide mapping initiative that, if successful, will allow leaders at the state and local levels to readily identify and focus on un-served areas and allow policy makers to prioritize and direct resources and investment. The map (as intended) will illustrate broadband service availability from currently deployed technologies—wireless and wireline and, to the fullest extent possible, next-generation (3G/4G) solutions.
At the time of publication, data collection efforts are underway in the Commonwealth under the direction of the Secretary of Technology and leadership of CIT. The exercise is voluntary but is receiving full cooperation and support from private sector providers. CIT has taken great care 2 to safeguard and protect competitive information through non-disclosure agreements and the display of only aggregate (county level) data.
Maps produced through this process will be posted on the CIT-Broadband (http://www.cit.org/programs/broadband.html) and Broadband Roundtable (www.otpba.vi.virginia.gov) websites anticipated for publication before the end of 2008.
For community broadband deployments, the overriding objective should be to provide individuals, businesses, and governments with affordable access to whatever technology allows the execution of desired online activities in a timely and cost-effective manner. In most cases, the technology options requested by consumers are not driven by the technology name, but rather by its ability to accommodate the type of applications to be used.
There is no single technology solution that will solve all of the Commonwealth’s broadband connectivity concerns. While fiber currently offers the best long term, fastest, and most reliable solution, there are other technologies that can provide reasonably good alternative solutions.
Leaders in un-served communities in Virginia are faced with a long list of questions to answer and options to consider as they navigate the broadband decision making process. One of the most critical (and often most challenging) decisions is “which” technology is most appropriate for the proposed area of coverage. Unfortunately, many communities lack strong technical “in house” expertise capable of balancing the need for a suitable near-term solution, with the requirements of long term sustainability and reasonable return on investment. In some instances, the lack of technical knowledge and a perceived inability to be able to make the “right” choice is sufficient to delay or de-rail the entire deployment process.
In the absence of providing each locality with an experienced broadband deployment consultant to assist with the selection and implementation process, the Roundtable’s esteemed technology committee created a technology attribute “matrix” (Appendix One) to provide technology specific information including: bandwidth, capabilities and limitations, appropriate scenarios for use, and general cost estimates to level the playing field and expedite the decision making process.
Applications (programs, services) are the life-blood of any broadband network. Historically part of the great “chicken and egg” debate about broadband networks (which should come first), applications are now so plentiful, it is no longer a matter of “whether” a consumer (organization/individual) wants to use a broadband application, but rather “which” application(s) are desired. The value proposition for someone to acquire a broadband connection is generally rooted in the type of application they desire to use. For planners, understanding the role of applications and selecting a technology (or technologies) capable of accommodating the bandwidth needs of both industrial and individual users is paramount – without adequate bandwidth (current and future), the network will stagnate and once again fall on the wrong side of the broadband “availability and speed” digital divide.
In addition to serving as an “anchor tenant” in the technology investment planning process, large scale applications (first responder interoperability, school connectivity, rural healthcare) can also provide grant funding that can be leveraged for network build-out and sustainability. Often, organizations employing (or desiring to employ) these applications are capable of providing much needed capital and sustainable revenue streams for newly emerging networks.
Recognizing the important role that applications play in the technology selection and business case of community-led broadband deployments, Roundtable members have identified and documented the uses and characteristics of some of the most desirable and frequently leveraged applications that should be considered and courted during the broadband planning process. The list, including applications such as telehealth, digital government, e-commerce, and distance learning is now available on the Roundtable website at www.otpba.vi.virginia.gov.
There is no single policy change or initiative that will solve these broadband deployment problems overnight. Therefore, governments and regulatory agencies at all levels must act as enablers, not impediments, to community-led deployments and private investment. In fact, broadband deployments in un-served areas must become a top public policy priority with government acting in a leadership role to make ubiquitous affordable broadband a reality.
In Virginia, the Kaine Administration, General Assembly, State Agencies and organizations in concert with local leaders are banding together, aligning existing resources (attempting to create new ones where holes exist) and cooperating with the private sector to facilitate the deployment of last mile broadband services. As the “Mother of Presidents,” Virginia is known for creating strong, tenacious and dedicated leaders who understand the imperative and are willing to commit time, energy and scarce resources to insure that all Virginians share in the Commonwealth – in this case, ubiquitous, affordable broadband services.
The most notable example of government commitment to broadband is the investment that the Virginia Tobacco Commission has made in broadband infrastructure for Southside and Southwest Virginia. As of this publication date, the Virginia Tobacco Commission has contributed $85.8M to the construction of more than 1,666 miles of operational "open access" fiber in Southside and Southwest Virginia. The funds also leveraged $12.17M from the U.S. Department of Commerce - Economic Development Agency.
Many broadband initiatives in the Commonwealth are structured as public-private partnerships fueled by Virginia’s “broadband friendly” legislative and business environment. While use of these hybrid, public-private models are on the rise, much of the focus and funding remains directed toward building infrastructure instead of cultivating relationships and deploying programs that can ultimately provide a similar outcome, but in a more cost efficient and expedient manner.
What has become apparent through the work of the Roundtable is that despite our best efforts to align resources and policies into a cohesive “package” for communities to leverage, holes remain, leaving leaders in the Commonwealth without a complete “slate” of policies and resources to build upon when crafting a broadband initiative.
Suggested activities to complete the “slate” of broadband resources and eliminate remaining deployment barriers the Commonwealth include:
In the Commonwealth, many un-served communities have opted to initiate broadband deployments in an attempt to secure their place in the knowledge economy. Some have opted to leverage their municipal electric utilities and become municipal local exchange carriers (MLECs), while others have chosen to form wireless authorities or public-private partnerships. While the technologies utilized vary greatly, the underlying decision making process, (while not always carried out sequentially) generally follows a decision path from beginning with “what” are we trying to do to, deciding “how” to do it, and finally to establishing a plan for “how to pay for it”.
Fortunately, communities that have been through the process have been forthcoming with their experiences – good and bad, and have availed that information to the Roundtable for analysis and documentation as case studies. The analysis of these experiences coupled with an examination of the available legal and funding mechanisms has resulted in the creation of a free online Community Broadband Toolkit.
The toolkit (shown below), now available at www.otpba.vi.virginia.gov centers on walking communities through a step-by-step, strategic approach to the broadband planning and deployment process, including a “buy-down” worksheet to help planners calculate the amount of “government influenced” funding and assets that exist in the community.
Thanks to the hard work and dedication of Roundtable members, un-served communities in the Commonwealth now have a toolkit of resources and information to leverage when developing a community-led broadband initiative and leaders at all level of Virginia government have a better understanding of the challenges and opportunities that remain.
One of the key elements to overcoming the remaining barriers is consistency of purpose and messaging. It is incumbent on the leadership of the Commonwealth to communicate a solid commitment to ubiquitous affordable broadband access by:
In order to provide continuity of messaging and activities going forward, Roundtable staff will continue to work in close coordination with the Office of Telework Promotion and Broadband Assistance, the Center for Innovative Technology, Virginia Resources Authority, Virginia Association of Counties, the Virginia Municipal League, the Center for Rural Virginia, Virginia Tech eCorridors, the Kaine Administration, General Assembly and members of the private sector so that the integrity and value of the work done by the Commonwealth’s Broadband Roundtable is perpetuated.
1 For the purpose of the initial baseline mapping initiative, wireless services providing 200Kbps download speeds were also included.
2 Providers sign a Non-Disclosure Agreement with the Center for Innovative Technology (FOIA exempt, non-profit organization) that to provide geo-coded, address level broadband data that will be layered onto geo-spatial and demographic maps produced by the Virginia Information Technology Agency (VITA)
Copyright © 2008
Office of Telework Promotion and Broadband Assistance
1111 East Broad Street, 4th Floor
Patrick Henry Building
Richmond, VA 23219
804-786-9579 (p)
804-786-9584 (f)
Web Policy
WAI Level A Compliant
Home