Mcnc Btop Booklet Web-1

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Making Connections in North CarolinBroadband Technology Opportunities Program


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AKINGC NNECTIONS INNORTHCAROLINA

MCNC and The North Carolina Research and Education Network

Broadband Technology Opportunities ProgramTwo Rounds. One Goal.

Connecting North Carolinas Future Today

MCNC.O. Box 12889

3021 Cornwallis Roadesearch Triangle Park, N.C.

919.248.1900919.248.1101 fax

www.mcnc.org


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The extension of NCREN will provide scalability of the network to meet the research and education needs of

public education through 2025. In addition, acquiring and building out an open interconnect, middle-mile fibe

network will serve as a wholesale-priced conduit for private broadband service providers to reach and serve

consumers and small businesses in underserved areas of rural North Carolina.

Excerpt from a letter of support of MCNCs application for broadband recovery funds signed by all 15

members of North Carolinas delegation to the United States Congress (13 House /2 Senate).

We are embarking on a public-private partnership that will literally change the way North Carolina

communicates with the rest of the world. From the mountains to the coast, broadband access is a difference-

maker for rural North Carolina. This is a great example of how our state is leading Americas recovery.

North Carolina Governor Bev Perdue

Our reliance on NCREN has continued to grow as economic conditions have restricted travel and challenged ou

ability to offer a desired breadth and depth of courses to nearly 220,000 students. An owned NCREN will enable

our institutions to accelerate the pace of innovation and research, educate greater numbers of students, and

address the health care, education, and economic needs of North Carolinas citizens in greater numbers. NCRENtruly is a digital pathway through which our public university can reach all citizens of the state.

Former UNC President Erskine Bowles / now Co-Chairman of the Presidential Deficit Commission

What Are People Saying?

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North Carolina has long supported affordable broadband networks to ensure a high quality of life and a

globally competitive future for its citizens, businesses, and communities. Securing this funding will enable us to

expand our efforts to train workers and ensure they have the skills necessary to compete in todays job market.

Mike Murphy, Chairman of the MCNC Board of Directors

These areas of the state are struggling to transition their economies. The Golden LEAF Foundation Board of

Directors views this initiative as an opportunity to provide essential infrastructure, take advantage of federal

matching dollars, and invest directly in efforts to grow stronger communities. Access to fiber in these areas will

help level the playing field by providing global connectivity for business and educational opportunities. Rural

North Carolina cannot be left behind.

Dan Gerlach, President of The Golden LEAF Foundation

Rutherford County has focused on the economic, educational, public safety, and other societal benefits of

broadband almost since the start of the Internet era. We believe the network that will result from the Golden LE

Rural Broadband Initiative is a significant step in making affordable broadband service available to our citizens

and businesses. We have already begun to mention the network in economic development discussions. While

not the total solution, we believe the GLRBI is a step in helping the county form the private/public partnershipsnecessary to reach every citizen and business in the county with affordable broadband service.

John Condrey, Rutherford County Manager

What Are People Saying?


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Created by the governor and the N.C. General Assembly in 1980, MCNC is an independent, non-profit

organization that employs advanced networking technologies and systems to continuously improve

learning and collaboration throughout North Carolinas K-20 education community and allows for the

implementation of telehealth and healthcare information exchange technologies in public health and nonprofit hospitals. MCNC accomplishes this mission by operating the North Carolina Research and Education

Network (NCREN).

NCREN is a robust, secure, exclusive communications network that connects the institutions of the

University of North Carolina System, most North Carolina Independent Colleges and Universities, all North

Carolina Community Colleges, all North Carolina K-12 Schools, select public health facilities, and most non

profit and university hospitals to each other and through advanced research networks such as Internet2 anNational Lambda Rail, to the world.

In 2010, MCNC applied for and received two federal Broadband Technology Opportunities Program (BTOP

awards. These awards totaled $104 million, and when combined with $41 million privately-raised matchingfunds, represent a $145 million investment in broadband infrastructure in rural North Carolina. This report

summarizes MCNCs operation, the plans for the BTOP awards and the impact the awards will have on Nort

Carolina and its citizens.

Who is MCNC and What is NCREN?

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MCNC provides statewide and national network leadership.

MCNC enhances North Carolinas competitive position.

MCNC, through NCREN, provides in-state communications and Internet access to all K-20 education

institutions and a significant portion of public health/non-profit hospitals.

MCNC enables education and healthcare to leverage network technologies to make operations moreeffi cient.

MCNC levels access to educational content no matter where a student goes to school.

What We Do


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North Carolina Research and Education Network Communit

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Bandwidth needs in education continue to rise. Over the years, MCNC has been meeting rural institution

bandwidth needs through contracts with private-sector service providers. MCNCs spending with private

telephone and cable companies represents 63 percent of the service fees paid to MCNC by K-20 education

to operate NCREN.

MCNC Spend with Service Providers

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5

0

5.7 6.6

7.8

Millions

Includes local circuit spending for K-12 School Districts

2009

2008

2010


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The American Recovery and Reinvestment Act (ARRA) of 2009 appropriated $7.2 billion to broadband

investments. The ARRA directed the U.S. Department of Agricultures Rural Utilities Service (RUS) and

the U.S. Department of Commerces National Telecommunications Information Administration (NTIA) to

expand broadband access to unserved and underserved communities across the U.S., increase jobs, spurinvestments in technology and infrastructure, and provide long-term economic benefits. As a result of

this appropriation, RUS further funded the existing Broadband Initiatives Program (BIP) and the NTIA

created the Broadband Technology Opportunities Program (BTOP). BIP made loans and grants for last-milebroadband infrastructure projects in rural areas that directly serve consumers, small businesses and provid

last-mile service to CAIs. BTOP provided grants to fund comprehensive community infrastructure, public

computer centers, and sustainable broadband adoption projects. The BTOPs Comprehensive Community

Infrastructure grants served mainly the middle-mile portion of the network. The middle mile directly servelarge CAIs like universities, hospitals, and school districts and also wholesale access for the last mile.

As of September 2010, BTOP ($4.7 billion) and BIP ($2.5 billion) had obligated all their funding. While

MCNCs main focus is education, the $104 million in BTOP Grants and $41 million in private investment wiallow MCNC to build an NCREN that through private/public partnerships can serve healthcare, public safet

and other public sector customers. The network also can be utilized by private-sector service providers to

supply broadband service to underserved consumers and underserved small businesses. This significantlyexpanded network will help North Carolina realize its vision of high-speed broadband for all citizens.

What is ARRA/BIP/BTOP and Broadband Recovery?

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North Carolina Citizens

As the importance of broadband access became more of an economic development and connectivity

issue, the Rural Prosperity Task Force was formed in 1999. After its initial report to the N.C. General

Assembly, legislators then created the Rural Internet Access Authority (which was renamed e-NC Authorityin 2000). The e-NC Authority continues to work with citizens across the state and with private-sector

telecommunications and telephone cooperatives to change the access to citizens of broadband from 32

percent to about 80 percent. Today, there are still major areas of the state, particularly rural areas, wherecitizens do not have access to basic broadband.

North Carolina Community Anchor Institutions

Community Anchor Institutions (CAIs) are defined as public institutions that provide a service to the publicor are facilities where the public gather to be educated, gain information, or receive care. NCREN currently

serves the broadband needs of many education and healthcare CAIs in the state. The need for broadband

these institutions grows significantly every year (between 20 and 40 percent). In addition, the application

these institutions operate require a level and type of network connectivity that is not commercially availabto optimally perform. Finally, many CAIs in rural and underserved areas of North Carolina, such as libraries

lack the amount of bandwidth they require to serve their constituents.

The Broadband Needs of North Carolina


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Approximately $145 million of spending with the private sector to build the network.

Create and/or save thousands of jobs throughout the state.

Reduce middle-mile, wholesale access prices substantially for last-mile providers.

Allow operators to deploy last-mile broadband service to underserved areas.

Serve the bandwidth needs of CAIs statewide at stable costs for generations to come.

Create infrastructure that meets the advanced needs of research, education, and healthcare.

BTOP Impacts in North Carolina

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For more information, visit MCNCs BTOP Central Web Space online at www.mcnc.org/btop.


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Overall Private-Sector Stimulus for NCREN Expansion

136

1

8

Private Sector Companies

MCNC Project Management

In-Kind Donations

Amount in Millions


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1. The BTOP awards from 2010 represent ll capital funds - to be used only to construct the network.

MCNC needs a stable operating funding flow from the NCREN Community of connectors to properly

upkeep the community anchor institution portion of the network. It is expected that even as these

connectors increase their bandwidth demands on the network over the next two decades,operating funds paid to NCREN will remain relatively flat. The connectors will be getting more and

more bandwidth for the same operating investment.

2. No state funds were utilized as matching funds for the MCNC awards. The entire cash match for both

rounds was privately raised, mainly from the Golden LEAF Foundation ($24 million), MCNC Endowme

($8 million), and other donations. Other states - Illinois, Pennsylvania, and West Virginia - appropriated

multi-million dollar matching investments with tax dollars.

3. The contribution from the Golden LEAF Foundation was significant in sheer amount but also because

allowed MCNC to meet/exceed the 30 percent required match for Round 2. n Round 1, the required

match for federal dollars was 20 percent.

Facts about BTOP Funding

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Two Rounds. One Goal.

Connecting North Carolinas Future Today

Rural Broadband InitiativeRound 1

BROADBAND TECHNOLOGYOPPORTUNITIES PROGRAM

Round 1 Round 2

MCNC BTOP A d


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MCNC received $28.2 million through BTOPs Round 1 phase in January 2010 to fund the engineering

and construction of approximately 400 miles of new fiber to expand the optical footprint of NCREN in

southeastern and western North Carolina. MCNC raised $11.7 million in matching funds for its successful

application through private sources, ncluding $7.75 million from the MCNC Endowment ($4 million in casand $3.75 million in equipment purchases), making the total project a $40 million investment in broadban

infrastructure. The second round BTOP application is a $106 million project that in August 2010 received

$75.75 million through BTOP and a $24 million matching grant from the Golden LEAF Foundation. Anadditional $6.55 million in match was raised from the MCNC Endowment, donations of land from individua

community colleges, universities and others, and a donation of already-installed conduit in northeastern

North Carolina from the Albemarle Pamlico Economic Development Corporation. No state tax dollars wer

used to fund these projects. Because of the Golden LEAF Foundations investmentthe entire project hasbeen named the Golden LEAF Rural Broadband Initiative (GLRBI).

Both MCNC awards are a part of a coordinated strategy developed by the Offi ce of the Governor, the N.C.

Offi ce of Economic Recovery & Investment, and e-NC Authority to improve broadband access for businessand residents in underserved areas. Once all work is complete, the two rounds of BTOP infrastructure have

the potential to serve directly, or through MCNC partnerships with private-sector service providers, more

than 1,500 anchor institutions, 180,000 businesses, and reach more than 300,000 underserved families.

MCNC BTOP Awards

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C ti I t d b GLRBI


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The GLRBI includes more than 2,000 miles of new fiber throughout 69 counties that will ensure communit

anchor institutions throughout the state will have access to unlimited amounts of bandwidth now and

into the future. Consumers and small businesses along the fiber build also will be reached with enhanced

broadband service through wholesale and last-mile commercial telecommunications and cable providerswith whom MCNC has and is forming partnerships.

The GLRBI bridges the prosperity gap by delivering critical middle-mile broadband infrastructure anddirect connections throughout the state. Sixty-Seven of the 69 counties impacted are either completely or

partially underserved, according to the BTOP/BIP definition of underserved.

Breakdown and Impact: 32,597 square miles

5.9 million residents / 2.32 million households

709,500 households without broadband access

160,000 businesses

1,718 K-12 schools

61 community college main and satellite campuses

33 baccalaureate degree granting four-year colleges and universities 254 public libraries

1,887 public safety facilities

Counties Impacted by GLRBI

Mil C d B R d


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Total Aggregate

1,645.93 new miles of construction, 2,598.53 miles of new operated infrastructure.

Round 1

The routes as engineered represent 434 miles of new construction and 904 new operated miles.

(Note: the new miles make up part of the total operated miles)

Round 2The proposed routes (and as reported on our baseline) are 1,694.53 new miles operated as part of GLRBI

with 1,211.93 representing new construction, 354.3 representing new miles obtained/leased via IRU,

and 128.30 miles of existing miles being upgraded.

(Note: These totals are pending formal route design and engineering)

Miles Covered By Round

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C ti I t d b GLRBI


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The GLRBI includes more than 1,000 miles of new fiber throughout 69 counties that will ensure communit

anchor institutions throughout the state will have access to unlimited amounts of bandwidth now and

into the future. Consumers and small businesses along the fiber build also will be reached with enhanced

broadband service through wholesale and last-mile commercial telecommunications and cable providerswith whom MCNC has and is forming partnerships.

The GLRBI bridges the prosperity gap by delivering critical middle-mile broadband infrastructure anddirect connections throughout the state. Sixty-Seven of the 69 counties impacted are either completely or

partially underserved, according to the BTOP/BIP definition of underserved.

Breakdown and Impact: 32,597 square miles

5.9 million residents / 2.32 million households

709,500 households without broadband access

160,000 businesses

1,718 K-12 schools

61 community college main and satellite campuses

33 baccalaureate degree granting four-year colleges and universities 254 public libraries

1,887 public safety facilities

Counties Impacted by GLRBI

Round 1: Job Creation and Stimulus


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To date, MCNC has awarded contracts for Round 1 to the following firms:

Fiber Technologies: Construction/installation of fiber in western N.C.

Globe Communications: Construction/installation of fiber in southeastern N.C.

Comtech: All fiber splicing related to this portion of the project

Cisco Systems: Cisco ONS 15454 Optical Design Network Solution

CommScope: iber-optic cable and materials

ONUG Communications: ngineering design, project planning, and related services

Through these contractors and their subs, the Round 1 portion of the project is projected to create and/or

save 230 jobs. MCNC will add a few jobs to administer and oversee the build of the fiber, but most will becontracted positions with vendors handling various aspects of the project.


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To date, MCNC has awarded contracts for Round 2 to the following firms:

Kimley-Horn & Associates: Engineering design, project planning, and related services

MCNC will issue several Requests for Proposal (RFP) for the design, construction, and operation of the

GLRBI network - just as in Round 1 - n 2011. These RFPs have the potential to create and/or save more tha

1,000 engineering and construction jobs in the state. MCNC will add a few jobs to administer and oversee

the build of the fiber, but most will be contracted positions with vendors handling various aspects of the

project. MCNCs experience with the Round 1 award likely will lead to RFPs being issued in a rapid pace.

Vendors should register at www.mcnc.org/btop regarding these business opportunities.


At Work: Broadband for N C Telehealth Network


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The partners in the N.C. Telehealth Network (NCTN) are moving forward in assuring non-profit health care

providers have the broadband services needed to improve the health and care of North Carolina citizens.

The Cabarrus Health Alliance (CHA), the NCTN project coordinator, signed a contract valued at up to $7.2

million with MCNC and the N.C. Offi ce of Information Technology Services (ITS) as a major sub-contractor iOctober 2010.

MCNC and ITS will supply reliable high-speed broadband services for the Public Health Phase of the NCTN.This phase supports public health agencies and several of the larger free clinics and community health

centers throughout the state. MCNC and ITS will work with private-sector service telecommunications firm

including AT&T, TimeWarner Cable and CenturyLink to connect these facilities to NCREN.

These two NCTN phases are subsidized by a 2007 pilot program award of $12.1 million from the Federal

Communications Commission (FCC) as part the Rural Healthcare Pilot Program. The next phase will focus

on improving broadband facilities at low cost for North Carolina hospitals using part of the FCC award. Thi

second phase is expected to be operational in 2011.

The project website is http://nctelehealthnetwork.com.

At Work: Broadband for N.C. Telehealth Network

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North Carolina Has a Plan


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North Carolina remains proactive to the special and leading-edge needs of education institutions,

consumers, and small businesses while adapting to broader demands.

High-speed Internet is no longer a luxury, but a necessity. MCNCs sustainable and scalable plan fortechnology-enabled education and broadband connectivity is of the utmost importance for all North

Carolinians. What it takes now is creative public-private partnerships leveraging this new middle-mile to

reach those still unserved and underserved.

This new network, called the Golden LEAF Rural Broadband Initiative, will be a great enhancement to the

capabilities NCREN. It has the potential to reduce the costs of delivering broadband services to consumersand small businesses in regions of the state where affordable broadband currently isnt available. MCNC w

not compete with private-sector telephone and cable companies to serve these consumers and businesse

These carriers have built businesses specializing in serving the communications needs of consumers

and businesses; just as MCNC has built NCREN to serve the unique, high-bandwidth needs of research,

education, public health, and other public institutions.

MCNC will help create public/private partnerships to enable private-sector broadband providers to reach

underserved citizens and businesses. This approach benefits every citizen in the state.

North Carolina Has a Plan


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MCNC

P.O. Box 12889

3021 Cornwallis Road

Research Triangle Park, N.C.

www.mcnc.org

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