2015

Governor’s Northern Wisconsin Economic Development Summit

Wisconsin Broadband Strategy

December 1, 2015

Session Agenda

● Dani Jones

● Wisconsin Economic Development Corporation

● David Cagigal

● Division of Enterprise Technology at Dept. of Administration

● Maria Alvarez-Stroud

● UWEX – Broadband & E-Commerce Education Center

● Angie Dickison

● State Broadband Office at Public Service Commission

● Q & A

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GIGABIT BUSINESS PARKS

WSTA and WEDC: Public-Private Partnership

ALIGNING RESOURCES WITH NEEDS

WEDC

Division of Economic and Community Development

Division of Entrepreneurship and

Innovation Division of Business and

Industry Development Division of International Business Development

Prospering Businesses and

Communities

Entrepreneurial Spirit

Specialized Industry Leadership

Global Outlook

> > > >

BID MISSION STATEMENT

Leveraging industry leadership to accelerate growth and high quality jobs by advancing public/private partnerships for targeted, high impact initiatives in Wisconsin.

FROM CONCEPT TO REALIZATION

Wisconsin State Telecommunications Association (WSTA) presented the concept to WEDC

WSTA and WEDC collaboration: • User-friendly

• Business parks, Industrial parks, TIF districts

• Clearly-defined area

• Fiber and Gig-capable infrastructure

• Ability to provide service within a reasonable amount of time

Business park list created WSTA members identified the locations where they provide Gigabit service

WSTA members provide Gigabit service to over 130 locations: Purple – 100Gbps

Yellow – 10Gbps

Green – 1Gbps

GIGABIT BUSINESS PARKS

DETAILS

130+ sites with 1Gbps / 10Gbps / 100Gbps

Each site: • Site details:

• Name / Speed Available / Location / Community / County

• Provider details:

• Company Name

• Contact Name

• Phone Number

• Email Address/Web-site

HOW TO GET THERE

LocateinWisconsin.com

OPENING PAGE

WHAT’S NEXT?

AT&T working to identify business parks they serve Continued expansion to other providers Additional mapping for economic developers

FOR MORE INFORMATION

Dani Jones WEDC Sector Development Manager 608-210-6842 Danielle.jones@wedc.org Bill Esbeck Executive Director 608-256-8866 Bill.esbeck@wsta.info

Major Programs

● STAR (State Transforming Agency Resources) - ERP

● INCREASE BROADBAND SERVICES & SPEED

● Secure The Enterprise

● Implement e-Government Services (Portal)

● Consolidate And Optimize Infrastructure

● Enable Business Continuity

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Broadband Strategy

Governor’s Top Priorities: Jobs, Jobs & More Jobs – attract more businesses Workforce Development – provide greater access to

online training in job centers and libraries Education Reform – access online e-books, e-

curriculum, Learning Mgt. Systems with BYOD 24X7 Infrastructure Investment – increase broadband

infrastructure investments and deployments Lean Government – increase self-service portal

offerings

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Broadband Strategy

Engage telecommunication partners Develop a Unified Communications strategy Accommodate and integrate FirstNet requirements Establish a vision between current BCN state facilities

(1,200+), schools (650+) and libraries (350+) Prioritize increases in bandwidth for STAR, EMR, EHR, etc.

and other critical systems at DOC, DHS and other state facilities

Recognize and identify related infrastructure investments required as a result of high speed broadband (i.e., customer premise equipment – CPE, etc.)

Increased bandwidth to all BCN libraries in 2014 Create new statewide communications RFP

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Broadband Strategy

2014 BCN Spend - 2,100+ Locations: Schools & Libraries (900+) TEACH program (Federal e-Rate & State USF) - $18M

Technology for Educational Achievement

State Offices (1,200+) Balance of BCN charges - $7M

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Broadband Strategy

Badger Converged Network (BCN) Contracts 2006 to 2011 2011 to 10/31/2016 – Extended in 2011 with Minimum Revenue

Guarantee (MRG) MRG will be met 7/2015 Individual Case Basis (ICB) pricing interim successes

Next Steps RFI complete RFP draft complete RFP final (Plan Release in April, 2015) Evaluate and select Contract negotiations

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Broadband Strategy

Guiding Principles Greater service/speeds

Reduced costs

Reliability

Secure

Future proof

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Broadband Strategy

New Contract Expectations: Monthly Recurring Charges (MRC) Lower rates with greater speeds

CAPEX Minimal CAPEX required Significant fiber infrastructure installed over the years 93% of schools have fiber All BCN Libraries (350+) have fiber Eliminate State dedicated Core and aggregator network and

use commercially available network

Open Partnership

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Broadband Strategy

TEACH Statute Changes: Remove restriction of one school per district

Remove funding by category

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Broadband Strategy

Demand Transparency for Providers Collaboration among UWEX, WEDC and PSC on business

surveys Share one stop business applications (20,000/Yr.) Share existing fiber infrastructure for state facilities,

schools and libraries Share school readiness Prioritize and leverage commercial, residential, state

facilities, schools and libraries needs

Reduce Speculative CAPEX Spend (Trenching) Through Better Planning

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Broadband Strategy

Wired for Success – Through Public Private Partnerships:

o Achieve Guiding Principles • Greater service/speeds • Reduced costs • Better Reliability • More Secure • Future proof

o Contribute to the Governor’s Priorities • Jobs, Jobs & More Jobs • Workforce Development • Education Reform • Infrastructure Investment • Lean Government

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Catalyzing Community Change through Broadband

UWEX Broadband & E-Commerce Education Center

A Fluid and Critical 21st Century Issue

Broadband What We Know…

Utilization

Availability

Adoption

Utilization

People make it happen!

UWEX County Economic Development Agents & Community Partners

Partnerships to figure it out

Public and Private

Coordination, Education & Resources

• PSC/UWEX Broadband Resource Guide

• Broadband Policies & Regulations: A Beginning Roadmap

• Regional Broadband Boot Camps with Providers

• UWEX Broadband Adoption Advisory Board

• DNR/UWEX Collaboration

Rural E-Commerce Pilots

Lessons Learned: Wide range of

knowledge Topics are relevant Pitch is accurate Trainers are good Hands-on is key Basic barriers to

entry Group training +

Consultation Training is Needed!

2: Pilots 6: Counties 15+: Industries 106: Trainees

E-Commerce Training Results

Utilization vs. AR/KS/NC/NE rural SME

• 74% have a website (vs. 77%)

• 45% sell online (vs. 56%)

• 56% do eMarketing (vs. 62%)

• 55% do online customer service (vs. 66%)

• 35% use online collaboration (vs. 59%)

Very Important Barriers vs. AR/KS/NC/NE SME

• 40% lack expertise (vs. 19%)

• 30% security concerns (vs. 41%)

• 22% privacy concerns (vs. 30%)

• 20% cost of development (vs. 18%)

• 18% products not suited (vs. 15%)

Average DEi Score is 5.3

77 businesses competed assessments - Ashland, Bayfield, Clark, Oneida, Vilas, Wood

• 84% under 10 employees - 21% in Retail Trade

• Average DEi of 5.3 – typical rural average is 6.4 (AR/KS/NC/NE; under 50 employees)

• Expertise issues are critical barriers for 30% and challenging for another 30-40%

“This is a very valuable topic and is just what we need in rural Wisconsin.”

State Broadband Office

Broadband Expansion Grant Program

o Create an incentive to foster private broadband investment and expansion

o Support local-based initiatives o Leverage the use of funds from federal

broadband programs 35

State Broadband Office

o 2016 Broadband Expansion Grant Program o Annual appropriation to fund is $1.5 million o 28 Applications requesting over $4.4 million o Overview of Grants awarded

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State Broadband Office

Questions ?

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