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FEDERAL BROADBAND ROUND 2 APPLICATION INFORMATIONAL

MEETING

Office of Administration2/5/10

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Kelvin L. Simmons, Commissioner Office of Administration

Welcome & Introduction

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Agenda

Welcome and Introduction Round #1 Review Round #2

Deadlines Changes Key Application Tips

Public/Private Partnerships- State Assistance and Process

Guest Speaker Q&A Session

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Doug Young, CIO Information Technology

Services Division (ITSD), OA

Round 1 Review

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ARRA Broadband Stimulus

7.2 billion to expand access to broadband services in the United States $4.7 billion; Broadband Technology Opportunities Program

(BTOP). Funding is available in three categories: Broadband Infrastructure Public Computer Center Capacity Sustainable Broadband Adoption 20% matching fund requirements for BTOP grant application

$2.5 billion: Broadband Initiatives Program (BIP) Department of Agriculture’s Rural Utilities Service (RUS) Distance Learning Telemedicine Rural Broadband

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Round #1 Review - Goals of the State Goals of Broadband in Missouri:

95% of Missourians should have affordable high speed broadband access within five years.

The network will be designed to connect every school district, university, courthouse, law enforcement center, correctional center, and state facility that does not currently have adequate bandwidth within five years.

The “last mile” will be carried by fiber wherever feasible, and a combination of suitable technologies including wireless and cable, everywhere else that it is needed statewide within five years.

The network will be open-access, meaning that it will be available for use by all service providers on an equal basis.

The state will not operate the network as a going concern except insofar as it provides services to state and government facilities, universities, schools and libraries, but will instead partner with others to operate and maintain the network and provide services to Missourians.

The network will bring choice to consumers and make it cost-effective to reach isolated or disadvantaged customers.

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Round #1 Review – Work in Missouri Called on Partners to respond to this call to support the

goals of the state 131 applications filed with NTIA/RUS to do work in state

of Missouri Within Missouri

59 were Missouri companies 44 for last mile 5 for middle mile 2 for last mile remote 4 computer centers 4 for sustainable adoption Total request: $1 billion

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Round #1 Review – Work in Missouri Out of state companies

72 companies with projects in Missouri 3 for last mile 7 for middle mile 15 for last mile remote 9 for computer centers 38 for sustainable adoptions Total request: $3.2 billion

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BIP& BTOP Programs

Broadband Technology Opportunities (BTOP): NTIA Projects funded in Round #1: $1.6 billion (64%)

Infrastructure: up to $1.2 B Underserved and unserved areas Public Computer Centers: up to $50 m Sustainable Broadband Adoption: up to $150m

20% matching funds required by entity applying for grant (investment funds or in-kind contribution)

Total Awarded as of Dec. 15 = $183 million awarded to 17 states, continuing to issue Round #1 awards through February

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Doug Young, CIO Renee Slusher, Deputy Commissioner Office of Administration

Round 2

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MOBroadbandNow – 2nd Round

State of Missouri is committed to being engaged

High priority of the Governor Have a team and process to provide

assistance Want your thoughts about the first

round outcome and second round prospects

Partnerships and community connections are important to both the USDA and NTIA

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Round 2

Feb. 2 Eureka Federal Workshop

Update on Missouri’s broadband map and the locations of underserved areas

New requirements issued by NTIA and RUS for Round 2 & notable differences

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What’s Next?

Second round NOFA’s have been issued for USDA and NTIA funding to award the remaining $2.6b in 2010.

Application deadline – March 15, 2010 Major changes to understand What is in a successful application Federal information on grants at

www.broadbandusa.gov State information on grants at

http://transform.mo.gov

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Round #2 – Major Changes

Separate BTOP and BIP – NOFA and application (due March 15, 2010)

BTOP will focus on Comprehensive Community Infrastructure (CCI) Middle mile capabilities offering new/upgraded services to community anchor institutions

Removed requirement that infrastructure projects must be in unserved or underserved areas but applications serving unserved and underserved areas will receive additional consideration

BIP will focus on rural last mile projects and applicants that are current RUS recipients

Additional consideration and prioritization if match exceeds 30%.

Modified the service area delineations from Census blocks to Census tracts and block groups

Clarified the process for requesting waivers, including restriction on sale or lease of project assets

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Major points for successful grants made by NTIA Comprehensive view of communities to be served and have engaged as

many key members of the communities as possible in developing the projects.

Ensure fully completed application.

Examine projects funded in round #1 for insight.

Substantial fact and data based information needed to justify problem, benefits, viability, and sustainability.

30% match or more gets quicker review and more consideration.

Scoring changed to higher weight for project viability and project budget and sustainability.

Need to show clear demonstration of financial need and eight years of financial information.

Suggest a third party review before submission.

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Round #2 - Best practices for BTOP Infrastructure Projects Convincing methodology for determination of unserved

and underserved problem. Provision of wholesale and retail service offerings. Directly connecting anchor institutions with BTOP funds. Service to small/medium businesses. Strong track record in deploying and managing networks. 30% or greater match funds. Reasonable cost per mile (middle mile) or household (last

mile). Credible subscriber forecast based on clear, detailed

methodology. Leverage existing network assets via leasing (if possible). Composite set of revenues for all project members. Financial need based on business case.

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Priority framework for BTOP

1. Middle mile infrastructure with commitment to community anchor institutions

2. Middle mile project backed by public/private partnership

3. Middle mile project with intent to bolster growth in economically depressed communities

4. Middle mile project with commitment to community colleges

5. Middle mile project with commitment to public safety entities

6. Last mile infrastructure component or commitment letters

7. Greater than 30% match

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BIP – Round 2 changes

NOFA #1 NOFA #2

1. Combined BTOP and RUS NOFA

1. Separate NOFAs

2. LMR, LMNR, MM 2. Last mile and MM (RUS) Satellite, TA, Rural libraries

3. Unserved and underserved 3. 5 Megabits service

4. 50% grant/50% loan 4. 75% grant/25% loan

5. Joint application process 5. Single application process

6. Two step process 6. One step process

7. Census block reporting 7. No census block reporting

8. Paper applications 8. All electronic applications

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BIP – Round 2 changes

A few new definitions Funding categories

Last mile - $1.7 billion – 75/25 Middle mile - $300 million – 75/25 Satellite projects - $100 million – 100%

grant Rural Library and Technical Assistance - $5

million – 100% grant Scoring criteria and points system

delineated

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BIP – Round #2 eligibility factors

Fully complete application Timely completion Technical feasibility Nondiscrimination and interconnection Fully funded Financial feasibility

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Key Application Tips

1. Read the NOFAs and prepare your applications strategically

2. Match all the scoring criteria denoted in the NOFAs

3. Access recent federal public workshops4. Seek out partners 5. Reach out to State of Missouri for

support

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Doug Young, CIO Information Technology

Services Division (ITSD), OA

Public / Private Partnerships

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State Assistance for Round #2 State wants to partner - those interested need to

fill out information questionnaire and return by 12 noon, Wednesday, February 10 (online @ http://transform.mo.gov)

State assistance – Possible match Staff and consultants to help with reading

applications Staff and consultants willing to provide information

and research as feasible for required supporting documentation

Other assistance as requested by partners as feasible

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Daniel Strode, Ralls County

Guest Speaker

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State of Missouri ContactMr. Mark Reading

Director, MoBroadbandNowITSD, Office of Administration

Tel: 573.751.7072Email: Mark.Reading@oa.mo.gov

Questions?