Rural Broadband: The North
Florida Experience
Jeff Hendry, Executive Director
The Florida Institute of Government at
Florida State University
North Florida Economic Development
Partnership
April 30, 2012
Made Possible by the Broadband Technology Opportunities Program
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Funded by the American Recovery and Reinvestment Act of 2009
Purpose and Objectives
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Overview of IOG, NFEDP, Region and North Florida
Broadband Authority (NFBA)
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Key Factors Driving the Creation of the North
Florida Broadband Authority (NFBA)
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What Is the NFBA?
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The Grant
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The Questions/Comments
Made Possible by the Broadband Technology Opportunities Program
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Funded by the American Recovery and Reinvestment Act of 2009
IOG Mission and Values
 The Institute’s mission is to enhance the capacity of
Florida governments to effectively serve their
communities through education and training, technical
assistance and applied research, and public service.
 The Institute adheres to the core values of Commitment
to Excellence, Learning, Balance, and Integrity.
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Funded by the American Recovery and Reinvestment Act of 2009
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IOG Administrative Structure
The Florida Institute of Government currently
funds programs at six state universities:
Florida State University
University of Florida
University of Central Florida
University of South Florida
Florida Atlantic University
Florida Gulf Coast University
The Executive Office of the Institute is administratively housed at
Florida State University
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Funded by the American Recovery and Reinvestment Act of 2009
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Institute Components
 Education and Training
 Technical Assistance and Applied Research
 Public Service
Made Possible by the Broadband Technology Opportunities Program
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Funded by the American Recovery and Reinvestment Act of 2009
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NFEDP
NFEDP Mission and Purpose
1. Expand state, national and international marketing, promotion and
exposure of region’s economic development assets to secure new
business, industry and jobs.
2. Identify, marshal, and coordinate resources to enable the expansion
or diversification of existing businesses and industry in the region.
3. Identify issues that serve as impediments to increased economic
development opportunities, desired economic growth, and job
creation, and initiate and facilitate action to resolve those
impediments.
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Funded by the American Recovery and Reinvestment Act of 2009
Background and Overview of Region
•
One of three Rural Areas of Critical Economic Concern
(RACEC).
•
Fourteen Counties comprise North Central RACEC including
Baker, Bradford, Columbia, Dixie, Gilchrist, Hamilton,
Jefferson, Lafayette, Levy, Madison, Putnam, Suwannee,
Taylor, and Union.
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Approximately 9,100 Square Miles; 440,000 residents.
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Funded by the American Recovery and Reinvestment Act of 2009
Northwest RACEC:
8 Counties
North Central RACEC:
14 Counties
South Central RACEC:
6 Counties
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Funded by the American Recovery and Reinvestment Act of 2009
Significant Projects/Initiatives of NFEDP
1. Economic Development Academy (Pilot, June 2012)
2. Economic Development Asset Inventory and Mapping EDA
Grant from U.S Department of Commerce ($400,000)
3. Technical Assistance on Specific RACEC Partner Projects
4. North Florida Broadband Authority (NFBA)
Made Possible by the Broadband Technology Opportunities Program
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Funded by the American Recovery and Reinvestment Act of 2009
What is the NFBA?
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Independent Public Agency Utility Authority authorized
under Florida Statutes and Constitution
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Created and implemented via Interlocal Agreement
between two or more local governments.
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Governed by locally-appointed Board of Directors
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Ad Valorem Taxes NOT Authorized but independent
bonding capacity.
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Future system/capital improvements are financed on a taxexempt basis.
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Funded by the American Recovery and Reinvestment Act of 2009
Key Decision/Strategy: Why Create the NFBA?
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Needed Single Applicant for NTIA Grant Application (NFEDP did not
provide past experience)
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Provided a Regional, Formal Structure demonstrating unity and
commitment (e.g., signed Interlocal Agreement).
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Provided for transparency (i.e., same as Florida Local Governments)
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Provided best mechanisms for Stability and Sustainability.
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Florida model in place: Florida Governmental Utilities Authority (FGUA)
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Funded by the American Recovery and Reinvestment Act of 2009
The Grant
• $39.4 million total;
• $9.2 million in-kind contributions (initial Waiver);
• $30.1 million awarded February 17, 2010;
• Only Grant Awarded in Florida in Round One;
• Only Grant in the Country that did not require an Environmental Assessment
* Round 2 Florida Rural Broadband Alliance (FRBA)--$26.1 million
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Funded by the American Recovery and Reinvestment Act of 2009
Purpose of NFBA Project
 Build Middle Mile Network Infrastructure
 Extending high speed internet backbone to local last-mile
providers
 To serve Public and private sector customers
 154,000 Households
 26,893 Businesses
 1,573 Critical Facilities
 265 Health care entities
 Partner with Incumbents when possible
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Funded by the American Recovery and Reinvestment Act of 2009
Core Network Design & Capacity
 Open access middle-mile carrier class network consisting of fiber core
network and wireless backhaul and distribution.
 NFBA network is design with redundancy that provide highly available
transport services consisting of subtended rings among 92 Cell sites.
 NFBA network was designed and constructed to provide services to
unserved & underserved communities within a 19 county area.
 NFBA network includes in-kind assets as part of the local matching
funds which will be used to reach outer areas of each county
 Current focus is on getting last mile providers on the network early and
providing enhanced services as the system is able to support them.
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Funded by the American Recovery and Reinvestment Act of 2009
Project Team
 NFBA
– Richelle Sucara – General Manager
– Donny Lort – Sr. Project Manager
 Jacobs – Project management services
– Inspired Technologies – Network design
 Purvis, Gray & Company – Financial and accounting services
 Patton Boggs– Grant compliance and telecommunications consulting
services
 NFEDP – Marketing and Outreach
 Magellan Advisors – Business Development Support
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Funded by the American Recovery and Reinvestment Act of 2009
Equipment
 Ceragon 6Ghz & 11Ghz Radios
 Occam Switches
 KGP Cabinets
 Cisco ASR9000 Routers at Datacenters
 Cisco ASA5500 Firewalls
 HP DNS Servers
 CISCO UCS for configured Software (Solarwinds, SugarCRM, etc…)
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Funded by the American Recovery and Reinvestment Act of 2009
Network Overview Map
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Funded by the American Recovery and Reinvestment Act of 2009
Service Demand Map
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Funded by the American Recovery and Reinvestment Act of 2009
Project Status Update
 Permitting – 2 sites remaining
 Deployment construction
– Site civil work (80 of 92 sites complete)
– Lines & antennas ( sites complete)
 Network design (ongoing to enhance based on demand needs)
 Network Operator will be onboard in June
 NFBA connected first Customer in Branford on March 22, 2012
 Network general availability starting June 1, 2012
Made Possible by the Broadband Technology Opportunities Program
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Funded by the American Recovery and Reinvestment Act of 2009
Market Rate Study
 The Rate Study integrates:
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–
–
–
–
–
–
–
–
–
Services
Pricing
Customer growth
Revenue growth
Operational requirements
Capital expansion programs
Rate change scenarios
Key assumptions
Funding needs and options
Timing of funding
last-mile
services
middle-mile
services
value-added
services*
*Low incremental cost,
high incremental margin
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Funded by the American Recovery and Reinvestment Act of 2009
Made Possible by the Broadband Technology Opportunities Program
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Funded by the American Recovery and Reinvestment Act of 2009
Middle Mile Pricing to LMP
Internet (Per Mbp)
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20
50
100
200
300
400
500
1000
Transport (Per Mbp)
10
20
50
100
200
300
400
500
1000
Price Per Mbp
$40.00
$37.00
$35.00
$32.00
$31.00
$30.00
$29.00
$28.00
$27.00
Total
$400.00
$740.00
$1,750.00
$3,200.00
$6,200.00
$9,000.00
$11,600.00
$14,000.00
$27,000.00
$30.00
$27.00
$25.00
$22.00
$21.00
$20.00
$19.00
$18.00
$17.00
$300.00
$540.00
$1,250.00
$2,200.00
$4,200.00
$6,000.00
$7,600.00
$9,000.00
$17,000.00
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Funded by the American Recovery and Reinvestment Act of 2009
Estimated Pricing Structure to Customers
Service in MB
Dedicated Extended Price
Best Effort Price
10
$ 560.00
$ 60.00 - $ 70.00
20
$1,036.00
$115.00 - $125.00
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$1,813.00
N/A
50
$2,450.00
N/A
100
$4,480.00
N/A
** The above pricing structure is based on estimates and uplifted based on market
research. Final pricing will be set by last mile providers providing the customer
connections.
Made Possible by the Broadband Technology Opportunities Program
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Funded by the American Recovery and Reinvestment Act of 2009
Summary
 NFBA Network is connecting inaugural customers
 NFBA Network will be generally available June 1, 2012.
 NFBA’s business model provides long-term sustainability
 The NFBA is able to meet market rates under its future cost structure
 Significant capacity requirements in early years
 Significant pent-up demand will require near-term capital enhancement program
 Rate structure supports NFBA’s not-for-profit status – lowest rates that are sustainable
Made Possible by the Broadband Technology Opportunities Program
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Funded by the American Recovery and Reinvestment Act of 2009
KGP Cabinets
Made Possible by the Broadband Technology Opportunities Program
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Funded by the American Recovery and Reinvestment Act of 2009
Electrical
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Funded by the American Recovery and Reinvestment Act of 2009
Concrete Pad
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Funded by the American Recovery and Reinvestment Act of 2009
Cables and Antennas
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Funded by the American Recovery and Reinvestment Act of 2009
NFBA Antennas
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Funded by the American Recovery and Reinvestment Act of 2009