Ny-state Final Broadband Strategy June2009

New York State Universal Broadband Strategic Roadmap

New York State Council for Universal Broadband

June 2009

CONNECTING NEW YORK TO THE WORLD FOR SUSTAINABLE ADOPTION

SPECIAL ACKNOWLEDGEMENTS A special thank you to the Chairs, Vice-Chairs of the Action Teams and Contributors who are helping to implement the Universal Broadband Strategy for New York State. These leaders are serving to advance Governor David A. Paterson’s broadband vision that –

“Every New Yorker must have access to affordable universal broadband.” Broadband Infrastructure Action Team Chair: Dr. Timothy Lance, Chairman and CEO, NY State Education and Research Network Vice-Chair: Sharon Cates-Williams, Deputy CIO, CIO/OFT Vice-Chair: John Kolb, VP & CIO, Rensselaer Polytechnic Institute

Government Initiatives Action Team Chair: Edward Reinfurt, Executive Director, NY State Foundation for Science, Technology and Innovation Vice-Chair: Stephen Acquario, Executive Director, NY State Association of Counties Vice-Chair: Peter Baynes, NY Conference of Mayors

Digital Literacy and Community Outreach Action Team Chair: Michael Borges, Executive Director, NY Library Association Vice-Chair: Dr. Joseph Bowman, NY State Board of Regents Vice-Chair: Gail Brewer, NY City Councilmember Contributor: Thomas Herzog, CIO, NY State Department of Corrections

E-Government Initiatives Action Team Chair: Dr. Daniel Chan, CIO, NY State Office of Temporary & Disability Assistance Vice-Chair: Patrick Hooker, Commissioner, NY State Agriculture and Markets Vice-Chair: Ed Hemminger, CIO of Ontario County, and President of NY State Local Government Information Technology Directors Association

Economic and Workforce Development Action Team Chair: Robert McNary, Regional Director, Empire State Development Corporation Vice-Chair: Howard Lowe, Director of the Technical Assistance Center, SUNY Plattsburgh Vice-Chair: Mario Musolino, Executive Deputy Commissioner, NY State Department of Labor Contributor: Robert Vitello, CIO, NY State Department of Labor

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NYS COUNCIL FOR UNIVERSAL BROADBAND MEMBERS • Dr. Melodie Mayberry-Stewart, Chief Information Officer, NY State (Chair) • Stephen Acquario, Executive Director, NY State Association of Counties • Peter Baynes, Executive Director, NY State Conference of Mayors • Michael Borges, Executive Director, NY Library Association • Garry A. Brown, Chairman, NY State Department of Public Service • Gail Brewer, NY City Councilmember • Dr. Joseph Bowman, Member, NY State Board of Regents • Sharon Cates-Williams, Deputy Chief Information Officer, NY State Chief Information Officer/Office for Technology

• • • • • • • •

Dr. Daniel Chan, Chief Information Officer NY State Office of Temporary and Disability Assistance Robert Checca, Commissioner, Nassau County Department of Information Technology Paul Cosgrave, Commissioner, NY City Department of Information Technology and Telecommunications RoAnn Destito, Member, 116th Assembly District, NY State Assembly Brian Fischer, Commissioner, NY State Department of Correctional Services G. Jeffrey Haber, Executive Director, Association of Towns of the State of NY David Hansell, Commissioner, NY State Office of Temporary & Disability Assistance Edward Hemminger, President, NY State Local Government Information Technology Directors Association

• • • •

Thomas Herzog, Chief Information Officer, NY State Department of Corrections

• •

Susan Knapp, Chief Budget Examiner, NY State Division of the Budget

• • •

Dr. Timothy Lance, President and Chairman, NY State Education and Research Network

• • • • •

Patrick Hooker, Commissioner, NY State Department of Agriculture and Markets Dr. Donald Jacobs, Co-Chair, State University of NY Technology Policy and Practices Council Dr. Alain Kaloyeros, Vice President and Chief Administrative Officer, State University of NY, University at Albany – College of Nanoscale Science and Engineering John Kolb, Vice President for Information Services and Technology & Chief Information Officer, Rensselaer Polytechnic Institute – Computational Center for Nanotechnology Innovation Howard Lowe, Director of the Technical Assistance Center, State University of NY at Plattsburgh Steve Manning, Manager of Computer Services, Greater Southern Tier BOCES Regional Information Center Robert McNary, Regional Director, Empire State Development Corporation Richard Mills, Commissioner, NY State Education Department Shireen Mitchell, President & Executive Director, Community Technology Centers’ Network Mario Musolino, Executive Deputy Commissioner, NY State Department of Labor Edward Reinfurt, Acting Executive Director, NY State Foundation for Science, Technology and Innovation

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PURPOSE OF THE DOCUMENT The purpose of this document is to present the New York State Broadband Strategy to ensure every New Yorker has access to affordable universal broadband services. The broadband strategy document will: •

Present New York State’s case, vision, strategic goals and guiding principles for NYS Universal Broadband Strategy

•

Describe the major components of the New York State Universal Broadband Policy

•

Outline the State’s strategic governance structure to provide oversight for implementing the universal broadband policy

•

Describe the State’s broadband grant program to foster public/private partnerships to provide innovative solutions for achieving and sustaining universal broadband access

•

Present recommended next steps and an implementation timeline for development of the comprehensive universal broadband strategy

•

Present the strategic alignment between the Federal Broadband Stimulus Programs and Policies and the New York State Universal Broadband Strategy to optimize federal funding opportunities across the State

“We must … recognize that access to affordable, high speed broadband is just as important in today’s economy as access to a paved road, to a telephone line, or to reliable electricity. Broadband telecommunications is critical to improve the economic competitiveness of New York State. In these challenging fiscal times, we must continue to make careful investments that create jobs, drive down costs, and increase economic development. Extending high speed Internet access to the unserved and underserved, urban and rural communities will have a positive impact on the economy, education and families, while creating the foundation for economic progress for decades to come.”

--David A. Paterson Governor New York State

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TABLE OF CONTENTS SPECIAL ACKNOWLEDGEMENTS ......................................................................................................................... 2  NYS COUNCIL FOR UNIVERSAL BROADBAND MEMBERS ...................................................................................... 3  PURPOSE OF THE DOCUMENT ............................................................................................................................ 4  TABLE OF CONTENTS .......................................................................................................................................... 5  LIST OF TABLES ................................................................................................................................................... 6  LIST OF FIGURES ................................................................................................................................................. 6  EXECUTIVE SUMMARY ....................................................................................................................................... 7  BROADBAND IN NEW YORK STATE .................................................................................................................... 11  BROADBAND – THE NEED IN NYS ................................................................................................................................... 11  Accelerate Broadband Infrastructure Build Out ................................................................................................. 15  Increase Adoption Rates and Digital Literacy .................................................................................................... 15  Stimulate Demand for Broadband Services ........................................................................................................ 15  BROADBAND TODAY – THE REALITY ................................................................................................................................ 16  BROADBAND TOMORROW ‐‐ THE VALUE PROPOSITION ....................................................................................................... 17  NYS BROADBAND STRATEGY ............................................................................................................................. 19  MISSION, GOALS AND STRATEGIES .................................................................................................................................. 20  GUIDING PRINCIPLES .................................................................................................................................................... 25  GOVERNANCE STRUCTURE ............................................................................................................................................. 26  NEW YORK STATE GRANT ADMINISTRATION ..................................................................................................................... 28  PERFORMANCE IMPACT MEASUREMENT ........................................................................................................................ 29  Speed Goals ........................................................................................................................................................ 30  Performance Measurements .............................................................................................................................. 31  BROADBAND STIMULUS PRIORITIES – NYS TARGET OPPORTUNITIES ................................................................. 32  BROADBAND INFRASTRUCTURE BUILD OUT ....................................................................................................................... 32  Homeland Security and public Safety Interoperability ....................................................................................... 32  Mapping New York State Broadband Coverage ................................................................................................. 33  DIGITAL LITERACY AND SUSTAINABLE ADOPTION ................................................................................................................ 35  Digital Literacy and Re‐entry From Correctional Institutions ............................................................................. 35  Community Technology Centers ......................................................................................................................... 35  Health and Human Services Web Portals ........................................................................................................... 36  Digital Library Centers ........................................................................................................................................ 36  ECONOMIC AND WORKFORCE DEVELOPMENT ................................................................................................................... 37  Economic Development ...................................................................................................................................... 37  Workforce Development .................................................................................................................................... 37  Workforce Development Through Gaming ........................................................................................................ 38  Telework and Distance Learning ........................................................................................................................ 39  Social Networking .............................................................................................................................................. 39 

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Virtual Meeting Places ....................................................................................................................................... 40  Digital Court Hearings ........................................................................................................................................ 40  Telemedicine, Telepsychiatry at Family and Children’s Institutions ................................................................... 40  Broadband in the Arts ........................................................................................................................................ 41  FEDERAL STIMULUS PROGRAMS ....................................................................................................................... 42  GOALS OF THE BROADBAND STIMULUS PROVISIONS ........................................................................................................... 42  Federal Broadband Stimulus Programs .............................................................................................................. 43  Recommended Role of the States ...................................................................................................................... 44  Underserved and Unserved Communities .......................................................................................................... 44  OPITIMIZING FEDERAL BROADBAND STIMULUS FUNDING .................................................................................................... 49  Three‐Agency Partnership .................................................................................................................................. 49  Annual Funding of Broadband Programs ........................................................................................................... 50  Broadband Governance Timetable .................................................................................................................... 50  APPENDICES ...................................................................................................................................................... 52  NYS COUNCIL FOR UNIVERSAL BROADBAND ACTION TEAMS ................................................................................................ 52  Broadband Infrastructure Access Action Team .................................................................................................. 52  Digital Literacy and Community Outreach Action Team .................................................................................... 53  E‐Government Applications for Low‐Income Households Action Team ............................................................. 55  Economic Development and IT Workforce Development Action Team .............................................................. 56  Governmental Initiatives Action Team ............................................................................................................... 57  BROADBAND AROUND THE GLOBE .................................................................................................................................. 59  BROADBAND IN NEW YORK STATE .................................................................................................................................. 60  U.S. DEPARTMENT OF COMMERCE PROGRAM FACT SHEET (NTIA) ....................................................................................... 61  U. S. DEPARTMENT OF AGRICULTURE PROGRAM FACT SHEET (RUS) .................................................................................... 62  GLOSSARY .................................................................................................................................................................. 63 

LIST OF TABLES TABLE 1: REASONS PEOPLE DO NOT HAVE BROADBAND AT HOME .......................................................................................... 12  TABLE 2: SUMMARY OF REASONS DIAL‐UP AND NON‐INTERNET USERS CITE FOR NOT HAVING BROADBAND ................................. 13  TABLE 3: BROADBAND PERFORMANCE IMPACT MEASUREMENTS ............................................................................................. 31  TABLE 4: QUICK FACTS ABOUT THE BROADBAND STIMULUS PROGRAMS ................................................................................... 47 

LIST OF FIGURES FIGURE 1: NYS AND THE U.S. DIGITAL ECONOMY INDEX ........................................................................................................ 10  FIGURE 2: STRATEGIC THRUSTS OF THE NYS BROADBAND STRATEGY ........................................................................................ 14  FIGURE 3: US BROADBAND GLOBAL RANKING ...................................................................................................................... 16  FIGURE 4: COMPONENTS OF THE NYS UNIVERSAL BROADBAND STRATEGY ................................................................................ 20  FIGURE 5: NYS PREDICTED AVAILABILITY BROADBAND MAP .................................................................................................. 34  FIGURE 6: BROADBAND GOVERNANCE TIMETABLE ................................................................................................................ 51 

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EXECUTIVE SUMMARY Broadband, sometimes referred to as high-speed Internet, is a critical engine for communities to enhance social and economic well-being and a vital resource to educate our youth, create jobs, promote public safety, and deliver essential services such as healthcare. Universal broadband capabilities enable state and local governments to provide better and more cost efficient services. In addition, broadband access provides opportunities for citizens, businesses and visitors to enjoy the resources available through the Internet. While the promise of broadband is great, the reality has yet to meet the promise in New York State. Broadband has not fully arrived for all New Yorkers. In New York State, 48 percent of households are not high-speed broadband subscribers, even though 78 percent do have some type of Internet service using digital subscriber lines (DSL). This is one percent below the national average of 79 percent. (Source: Speed Matters, Communications Workers of America, August 2008) Overcoming the digital divide to become a national and global leader for broadband availability, capacity, and adoption will be challenging. New York State is diverse in its topography, population, and range of needs among its citizens. To help New York remain competitive on a national and global scale, proactive executive leadership, strong policy mandates, and clear broadband guidelines will ensure broadband networks are widely deployed, affordable and accessible to all New Yorkers. The New York State Council for Universal Broadband (Council) will advance Governor David A. Paterson’s vision to provide universal broadband access for all New Yorkers. The Council is responsible for developing strategies to ensure every New Yorker has access to affordable, high-speed internet service and to improve computer literacy throughout the state. The New York State Universal Broadband Strategy, developed by the Council, provides a strategic framework to realize the Governor’s vision. The strategy is a comprehensive and balanced mix of broadband infrastructure expansion and effective community outreach programs to stimulate demand, promote digital literacy, and educate disadvantaged, disenfranchised, and uninformed populations for sustainable adoption. This holistic approach emphasizes innovative solutions to increase broadband availability in unserved and underserved, urban and rural areas of the state, and focuses on increasing digital literacy and broadband adoption rates. The strategy envisions creating more "e-citizens" who are digitally literate and connected to affordable Internet service, so they are full participants in the Information Age and Digital Economy. Additionally, the strategy aligns with broadband grant provisions of the American Recovery and Reinvestment Act (ARRA) of 2009, (Broadband Stimulus Provisions) which provides national funding to expand broadband access to underserved and unserved, urban and rural areas.

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President Barack Obama recognizes technology, in particular broadband, can be a means to stimulate the economy, put Americans back to work, and help the United States reclaim a position of world leadership through the development of broadband networks that enable high-speed communications throughout our nation. By aligning the New York State Universal Broadband Strategy with the broadband provisions of the ARRA of 2009, New York State plans to leverage some portion of the $7.2 billion appropriation for broadband deployment in the federal stimulus package. The federal funding is aimed at states, local governments, schools, and businesses to improve broadband infrastructure, increase digital literacy, and augment state government programs. These goals are consistent with the stated goals in the New York State Universal Broadband Strategy. The goals set forth in the strategy will be attained by executing sound fiscal management practices, leveraging existing state-owned and privately held assets, exploiting state procurement models for cost-efficiency, engaging in state agency program collaboration, championing public/private partnerships whenever feasible, and insisting on supplier diversity and inclusion. The goals are to: • •

• • •

•

•

Provide all New Yorkers access to high speed, affordable broadband services from anywhere, at anytime, by anyone; Close the digital divide and increase digital literacy levels by providing training and educational opportunities, in unserved and underserved, urban and rural communities; Foster economic development and build stronger public/private partnerships; Accelerate the use of state e-government services offered over the Internet to citizens, businesses, and visitors; Create jobs through innovative community-based digital literacy and technology training programs to increase household technology adoption rates; Achieve and maintain speed and coverage goals aligned with state and federal policies to achieve and sustain competitive advantages; and Align state strategies with the principles and program goals of the American Reinvestment and Recovery Act (ARRA) of 2009 to optimize funding that stimulates the New York State economy.

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"As we renew our schools and highways, we’ll also renew our information superhighway. It is unacceptable that the United States ranks 15th in the world in broadband adoption. Here, in the country that invented the Internet, every child should have the chance to get online, and they’ll get that chance when I’m President because that’s how we’ll strengthen America’s competitiveness in the world."

-- Barack Obama President United States of America Presidential Radio Address (12/6/08)

Recognizing a comprehensive, multi-faceted approach is necessary to successfully implement the goals, the Council created five Action Teams to develop and implement the strategies of each goal. Each team has their own objectives, deliverables and performance impact measures. The Action Teams include: Broadband Network Infrastructure Access; Digital Literacy and Community Outreach; E-government Applications for Low-income Households; Economic Development and IT workforce Development; and Government Policy Initiatives. In 2008, the Council achieved the following accomplishments: • • • •

•

Granted $5 million in awards for projects across the state by leveraging community based public/private partnerships; Launched the statewide broadband mapping initiative with county-wide validation efforts currently underway using public and private partners; Developed and approved statewide digital literacy standards; Launched a health and human services web portal (mybenefits.gov), starting with eFood and eHEAP applications to increase digital literacy and household adoption rates for low income households; and Conducted an Economic Development Survey to ascertain broadband impact.

Also, the Council released its first annual Universal Broadband Report in May 2009 highlighting 2008 accomplishments and priorities for 2009. To download a copy of the first annual report, visit the CIO/OFT website at www.cio.ny.gov. In this era of technology innovation, broadband is the highway of the 21st century, and a vital connection to the entire nation and the global economy. To provide essential benefits to New Yorkers, it is imperative New York deploy robust and affordable broadband to every corner of our state. By adopting the right policy framework, the growth of broadband technologies will significantly strengthen New York’s economic empowerment.

Figure 1 shows New York State, on a national level, is ranked in the third quartile according to the 2008 State New Economy Index “Benchmarking Economic Transformation in the States.” As shown in Figure 1, 25% of the states are ranked higher than New York State for Digital Economic competitiveness. Page 9 of 64

Figure 1: NYS and the U.S. Digital Economy Index

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“Technology and the Internet drive economic development efforts across the globe. For our counties and communities to be competitive in retaining and attracting jobs, we need to provide access to the latest technological innovations. NYSAC is happy to partner with New York State on this critical economic development and social issue. It is imperative to provide high speed Internet access to every corner of the state.”

-- Stephen J. Acquario Executive Director NYS Association of Counties and Council Member

“Universal broadband is a very important factor in the quality of life of our citizens as well as a significant economic development issue. Public/private partnerships will ensure infrastructure is available to assist businesses overcome the current difficulties in competing in both the national and global marketplace. This is an exciting time for our state.”

BROADBAND IN NEW YORK STATE While New York State gained momentum for increasing broadband accessibility and creating standards for digital literacy in 2008, New York still faces some significant challenges. It is clear other states and countries are improving broadband infrastructure at a rapid pace. New York must accelerate its efforts to remain competitive and retain its national and global leadership standing.

BROADBAND – THE NEED IN NYS Paramount to successful implementation of Governor David A. Paterson’s vision of ensuring affordable universal broadband access for all New Yorkers is a solid strategy to guide decision making. New York State’s broadband strategy is not just about infrastructure, but rather, what infrastructure can do for the state, its citizens, its businesses, and its visitors. In the 21st century, access to broadband service is a necessity for economic competitiveness, homeland security, healthcare, education, social opportunity and equity. While building infrastructure to increase broadband availability is important, ensuring citizens using technology can improve their quality of life is equally important. If broadband is available, but not affordable, its full value to New Yorkers cannot be achieved. Similarly, if broadband is available and affordable, but citizens have not been exposed or educated to its capabilities and benefits, the state’s vision cannot be realized. Technology adoption and cultural barriers must be overcome. Computer ownership and network connection adoption rates of 100 percent are relatively easy in affluent communities. The challenge is to bring the benefits of this technology infrastructure, and the increasingly rich educational, health, government, training/retraining and entertainment capabilities to all New Yorkers.

-- Ed Hemminger President of NYSLGITDA and Chief Information Officer of Ontario County, Council Member

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In December 2007, the Pew Research Center conducted a survey and asked non-internet users about the reasons they do not use the Internet. In May 2008, they conducted another survey to determine why dial-up users do not have a broadband connection at home. Table 1 below summarizes the results.1 Table 1: Reasons People Do Not Have Broadband At Home Reasons People Do Not Have Broadband At Home Dial-Up Users = 9% of All Adults % Of Dial-Up Users

% Of All Adults

Price must fall

35%

3.2%

Nothing would get me to switch

19%

1.7%

Don't know

16%

1.4%

It would have to become available where I live

14%

1.3%

Other

11%

1.0%

What is the MAIN Reason You Don’t Use the Internet or Email? (Asked of Non-Users) Non-Internet Users = 25% of All Adults % Of Non-Users

% Of All Adults

Not interested in getting online

33%

8.3%

Can't get access

13%

3.3%

Difficult

9%

2.3%

Other reason

9%

2.3%

7%

1.8%

7%

1.8%

7%

1.8%

4%

1.0%

3%

0.8%

3%

0.8%

Too expensive Too busy/no time Waste of time Don't have computer Too old to learn Physically unable

Source: Horrigan, John B., Associate Director for Research, “Stimulating Broadband: If Obama Builds It, Will They Log on?, Pew Internet & American Life Project, (January 21, 2009)

1

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“Providing incentives to build broadband infrastructure directly addresses the availability problem and could be of particular help to Americans living in rural areas, where 24% of dial-up users say they cannot get broadband because high-speed infrastructure doesn't reach their home.” 2 Table 2 consolidates the data into four categories: usability, price, availability and relevance. As shown, the largest barrier to home broadband use is relevance at 51%, which includes a range of adoption hurdles, i.e., interest, access, price, computer availability, and others. Table 2: Summary of Reasons Dial-Up and Non-Internet Users Cite For Not Having Broadband Summary Of Reasons Dial-Up And Non-Internet Users Cite For Not Having Broadband At Home % Of Dial-Up Users + Non-Online Users

% Of All Adults

17%

5.5%

Price

18%

5.9%

Availability

14%

4.5%

51%

16.4%

Usability (Difficult + Waste Of Time + Too Old + Physically Unable)

Relevance (Not Interested In Getting Online +Nothing Could Get Me To Switch +Too Busy + Other Unspecified Reasons)

To be a full participant in both the Information Age and the Innovation Economy, access to affordable high speed broadband Internet service is critical for individuals and businesses. Although broadband infrastructure has been deployed throughout New York State, there are still communities where access to broadband is neither affordable nor available to citizens and businesses. The case for investing in broadband as an economic development strategy for encouraging commerce and revitalizing areas across the state is increasingly clear.

2

Horrigan, J. B., Pew Research Center.

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The New York State Universal Broadband Strategy takes a comprehensive and holistic approach to making broadband access available for all New Yorkers. The strategy has three major areas of emphasis which are to: • • •

Accelerate Broadband Infrastructure Build Out for Residential, Commercial and Governmental Institutions; Increase Adoption Rates and Digital Literacy Programs to Increase Computer Proficiency Levels at Home and at Work; and Stimulate Demand for Broadband Services to Attract and Retain a Strong Digital Economy for the Future.

This approach involves building a high tech workforce with academic partners, and recruiting and retaining high tech companies in New York State. The three areas are interconnected. A successful broadband strategy cannot exist unless all three areas are addressed equally as shown in Figure 2 below. Each component has a synergistic effect on the other. Increased education stimulates demand, which spurs infrastructure build out and sustainable adoption. Figure 2: Strategic Thrusts of the NYS Broadband Strategy

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A CCELERATE B ROADBAND I NFRASTRUCTURE B UILD O UT

Providing incentives to build broadband infrastructure addresses the availability problem and can help Americans living in unserved or underserved rural areas, where 24% of dial-up users say they cannot get broadband because high speed infrastructure does not reach their home.3 Public/private partnerships must work with communities to identify areas with the most critical needs to increase the pace of development. State and federal grant programs will provide capital, financial incentives, and seed money to advance infrastructure development. Also the strategy insists on underserved and unserved urban areas as equally important.

I NCREASE A DOPTION R ATES AND D IGITAL L ITERACY

New York State’s technology adoption rates remain below the national average. According to a recent study, New York’s adoption rate is averaging 53%, or 2% below the national average of 55 percent.4 One reason for this sub-average result is due to the affordability issue; another reason is availability. These are the main issues for a third of the adult population currently without broadband service. Another issue is lack of digital literacy and capacity. Non-adopters may involve the elderly who are uncomfortable learning a technical skill, immigrants with language barriers, low-income less-educated people who cannot understand the benefit of technical skill, or others who are simply resistant. Digital literacy programs will help people overcome those fears by developing basic technical skills useful at work and home.

S TIMULATE D EMAND FOR B ROADBAND S ERVICES

Another consideration to advance broadband strategies is to address the increasing demand for more speed among existing high speed users. In a May 2008 survey conducted by the Pew Research Center for the People and the Press, 29% of broadband users pay more for home broadband speeds that are higher than the standard ones advertised by carriers. The remaining 71% either have the standard package or do not know whether a premium is paid. Assuming newer and faster broadband costs more than existing offerings, at least one-third of 3

Horrigan, J. B.; Pew Research Center for the People and the Press (http://people-press.org) Source: New York City Broadband Landscape and Recommendations Study (July 2008), available at www.nyc.gov/html/doitt/downloads/pdf/bac_presentation_7_30_2008.pdf

4

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home high speed users are good candidates to take that step. More e-government programs are coming on to the Internet for cost efficient and convenient service delivery; expansion of egovernment lowers operating costs. This push from government alone will create greater demand by the public seeking services, even from the technically disenfranchised.

BROADBAND TODAY – THE REALITY New York State is the third most populous state in the country with an estimated population of 19.4 million. It is the 27th largest state in terms of geographic size, with 54,555 square miles of territory. The topography of the state is diverse, traversing the Adirondack and Catskill Mountains to large metropolitan areas like New York City. Through the Internet, distance is no longer an obstacle to connectivity, and citizens living in the Adirondacks are no longer isolated from the larger economy of New York or the global economy of the world. United States global competitiveness has been losing ground since 2001. This continuous downward slide in global broadband rankings is largely due to the lack of a national policy to accelerate the build out of broadband services to underserved and unserved, rural and urban communities. The United States has gone from being ranked #4 in 2001 to being ranked #15 in 2007. Figure 3: US Broadband Global Ranking

Source: Assessing Broadband in America OECD and ITIF Broadband Rankings, April 2007

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“New York's cities and villages will not be able to reach their full economic development potential without a concerted public/private effort to close the digital divide. We look forward to working collaboratively with the other members of the Council to achieve universal access to affordable broadband technology.”

-- Peter Baynes Executive Director New York Conference of Mayors and Council Member

In New York State, the broadband provider community report 95% of the state is served by some form of broadband. If true, approximately 5%, or nearly one million people in New York remain unserved by broadband services. This is still a significant number of the population without broadband service. (Source: New York State Telecommunications Association) Much work still needs to be done to achieve our goal of universal access at speeds which improve overall global competitiveness. Even though New York may have 95% area coverage, the state still needs to discover if and where those speeds are too slow, particularly in the rural areas, to support needed applications and service levels.

BROADBAND TOMORROW -- THE VALUE PROPOSITION Describing the value of broadband is similar to describing the value of constructing a bridge, or paving roads. Often dubbed the “information superhighway,” it is a pathway comprised of intersecting roads and bridges, connecting neighbors, businesses, schools, and hospitals. But the road is only valuable to those who access it; and what can be accomplished via the information superhighway is limited by one’s own imagination. Broadband has revolutionized how the world does business, interacts with government, learns, and is entertained.

“Lack of broadband access has been an impediment to economic and community development in small, remote communities like Newton Falls. We are pleased that the Broadband Council has supported the long term needs of the Newton Falls Fine Paper Company, as well as to create access to broadband for the community residents.”

-- Thomas Sauter Deputy Executive Director Development Authority of the NorthCountry NYS Broadband Grant Recipient

With affordable broadband technology as the equalizer, students across New York have access to the same high quality education regardless of geography; entrepreneurs in St. Lawrence County can develop global businesses that compete with companies in Europe; and farming families living 200 miles from downtown Albany can access medical services from a major medical facility in New York City, Buffalo or any high quality health facility in the world through telemedicine. Whether at the office, in an airport, or even on vacation, consumers expect to be connected. Businesses rely on employees who can work from virtually anywhere. With broadband service, workers attend meetings via video conference, exchange files, and work collaboratively online to accelerate the completion of projects. As essential as electricity, water and sewer, access to broadband services for businesses is essential to their survival and growth.

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The value of broadband as a constant connection to the Internet (always on, from anywhere, at anytime), is immeasurable by common economic measurement methods, and has a greater return on investment than many other infrastructure investments. While other infrastructure investments have a limited number of uses, broadband has unforeseen uses. The history of technology is characterized by the evolution and emergence of a constant stream of new applications and uses.

“In an era of global competition, we need to be able to help remote villages and communities access information, easily and swiftly. The Universal Broadband Council will help increase digital literacy within those rural populations and will help farmers, agri-businesses and other local small businesses get on the same page as their urban counterparts, allowing them to take advantage of the opportunities technology offers to better serve New Yorkers.”

-- Patrick Hooker Commissioner NYS Department of Agriculture and Markets and Council Member

“The availability of intellectual skills and educational capabilities from New York’s top flight research universities is critical to accelerating broadband penetration, bridging the digital divide, and increasing digital literacy, particularly among remote upstate communities -- a necessary ingredient for an innovation economy blueprint.”

-- Dr. Alain Kaloyeros Vice President and Chief Administrative Officer University at Albany College of Nanoscale Science and Engineering, Council Member

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“Our New York State broadband strategy requires creating more ecitizens who are digitally literate and connected to affordable Internet access so they can become full participants in the information age.”

-- Sharon Cates-Williams Deputy CIO NYS CIO/OFT and Council Member

NYS BROADBAND STRATEGY Prior to 2007, New York State lacked a universal broadband policy that ensured New Yorkers have affordable access to the Internet and can participate fully in the Information Age. 5 In addition, universal broadband coverage for economic, educational, and health related benefits was not generally understood. Broadband provides public safety communications capabilities in times of emergencies. Universal broadband service improves capacity of organizations to deliver public services more cost efficiently and effectively. Accelerating availability, affordability, and usability efforts are high public priorities and form the basis of the New York State Universal Broadband Strategy. The highest levels of state government have made it a priority to develop and implement a comprehensive statewide policy for broadband development and sustainability. Governor Paterson has made universal broadband a top priority to ensure New York is at the forefront of technological transformation in our communities. Also, partners in the Senate and Assembly have also embraced the importance of broadband service and champion this initiative.

“New York has a proud history of seminal contributions to research-focused and commercial networking dating back to the birth of the public Internet in the eighties. With the broadband initiative the State has committed to bringing the benefits of this everenriching resource to every citizen.”

-- Dr. Timothy Lance President and Chairman New York State Education and Research Network, Council Member

The New York State Universal Broadband Strategy consists of five main components: • • • • •

Mission, Goals and Strategies; Guiding Principles; Governance Structure; Grant Administration; and Performance Impact Measurements.

5 The FCC defines a broadband connection as one that exceeds data transmission speeds of 200 kbps in one or both directions. However, speeds three times faster are becoming common in most cities.

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Figure 4: Components of the NYS Universal Broadband Strategy

MISSION, GOALS AND STRATEGIES The mission of the New York State Council for Universal Broadband is to ensure every New Yorker has access to affordable, high-speed broadband services. This mission is fulfilled by a strategy that includes a comprehensive and holistic broadband approach focused on infrastructure build out, digital literacy expansion, economic and workforce development growth, and expanded use of online government services (e-government) over the Internet. The New York State Universal Broadband Strategy provides the strategic framework so the state’s vision can be realized. The strategy creates more "e-citizens" who are digitally literate and connected to affordable Internet access, so they can be full participants in the Information Age. The New York State Universal Broadband Strategy consists of six goals. Each goal has a set of strategies designed to meet speed, coverage, and adoption rates which are:

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Goal #1: Provide all New Yorkers Access to High Speed, Affordable Broadband Services from Anywhere, at Anytime, by Anyone. Strategies • • • • •

Advocate for national and state policies that require minimum speed thresholds for households, businesses and institutions; Develop policies that incentivize providers to offer lower rates for households at 150% or lower of the poverty level to increase household adoption rates; Achieve universal broadband access for all communities throughout the state with at least 1 Mbps up/down; Use national benchmarks and studies to empirically confirm accessibility, availability and adoption rates; and Establish and maintain a statewide broadband map to ensure there are no gaps in coverage or services.

Goal #2: Close the Digital Divide and Increase Digital Literacy Levels in Unserved and Underserved, Urban and Rural Communities. Strategies • • • •

Develop programs that focus on increasing digital literacy levels for homes at or below the poverty level; Adopt statewide digital literacy standards to ensure educational programs incorporate minimum computer proficiency standards; Develop and deploy a consumer education and marketing program to increase household adoption rates; and Partner with public and private community-based computer training organizations to provide access to training for people without computers in the home or business.

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Goal #3: Foster Economic Development and Build Stronger Public/Private Partnerships. Strategies •

•

•

Require alignment with the state’s economic development strategic priorities for state funding by: o Supporting a region’s industry concentration or growth industry; o Building on a region’s competitive advantages, such as educational institutions, high-tech commercial corridor, arts community or creative/theatrical districts or academic research entities; o Accelerating progress of other state or local initiatives, especially technology-focused or innovation-based centers; o Building capacity of business incubators, university-based commercialization projects, and existing industrial parks in highdensity areas. Support economic development efforts aligned with state priorities by: o Offering multiple benefits – such as economic, public safety, educational – to multiple beneficiaries (such as the development of mixed-use buildings offering community space, commercial space, and affordable housing); o Developing programs which focus on increasing digital literacy levels for homes at or below the poverty level; o Supporting expansion of service options in manufacturing/industrial areas; o Tracking and measuring environmental dividends such as higher telecommuting or reduced emissions. Promote projects for stimulus prioritization that: o Require cost-benefit analyses and will rank projects generating the greatest economic value in the shortest timeframe; o Require projects be sustainable, as evidenced by a business plan that extends beyond the terms of the stimulus grant; o Forecast realistic and direct job growth; o Give preference to projects that combine education and outreach for sustainable adoption.

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“As we continue to make government more customer-focused by increasing the number of services available online, the role of broadband cannot be understated. The Universal Broadband Access Strategic Council will explore ways to enhance public access to this vital service—ideas that will be instructive to New York City as we complete our own broadband feasibility study.”

-- Paul Cosgrave; NYC Commissioner New York City DoITT And Council Member

“The work taking place at the state level parallels efforts to close the digital divide in New York City. In March 2009, the joint Mayoral – City Council Broadband Advisory Committee completed a public hearing process that revealed how the Internet is used by New Yorkers. Often, digital resources are economically out of reach for some. New York State’s initiative to develop a broadband strategy is precisely what is needed to ensure that New Yorkers have full access to internet resources and that the State remains digitally competitive.”

-- Gail A. Brewer NYC Councilwoman New York City and Council Member

Goal #4: Accelerate Use of State e-Government Services Offered Online to Citizens, Businesses and Visitors. Strategies • •

•

Expand the use of e-government services provided through the Internet by state and local agencies; Develop a set of best practices to identify and assist other e-government applications for successful outreach through web portals by clustering state agencies with common needs and service constituents (e.g., health and human services, public safety and criminal justice, etc.); and Integrate early adopter e-government applications into community-based digital literacy training programs in local communities through local agencies, community technology centers or other local hubs of operation to increase access and usage of government services.

Goal #5: Create Jobs through Innovative Community-Based Digital Literacy and Technology Training Programs to Increase Household Technology Adoption Rates.

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Strategies •

•

•

Recommend and adopt statewide digital literacy proficiency standards for state schools and other digital literacy entities, and work with local entities to foster the implementation of digital literacy programs to increase home penetration rates; Develop strategies for state and local programs to increase consumer education regarding use of the Internet to improve quality of life issues and increase household adoption “take rates;” and Address technology affordability issues to increase technology adoption at the household level in underserved and unserved communities by implementing strategies that address to socioeconomic cultural barriers in urban and rural communities.

"This report takes into consideration the complex and varying needs of the different regions of the state and helps New York chart its path forward in order to make strategic decisions regarding broadband deployment and adoption."

-- Maureen Harris Esq. Commissioner NYS Public Service Commission

Goal #6: Achieve and Maintain Speed and Coverage Goals Aligned with State and Federal Policies to Achieve and Sustain Competitive Advantage Strategies •

• • • • •

•

Develop and maintain current map of coverage and household penetration rates using independent benchmarks and validation by local and private partners; Recommend and advocate for policies that address affordability and socioeconomic barriers to increase adoption rates; Develop incentives for providers to accelerate build out and encourage continuous upgrades to remain competitive; Support strategies for increasing representation on state, federal, or international policy-making and advocacy organizations; and Encourage use and build out of existing broadband assets wherever possible; Encourage use of systems that are based on industry standards established by the Federal Communications Commission (FCC) and the National Telecommunications Information Administration (NTIA) for interoperability; and Encourage development of systems that are scalable, reliable and allow easy deployment of next generation technologies.

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“Working with the NYS CSCIC and members of the Broadband Council, a team began to map broadband coverage density down to a city block. This provides an incredible tool to ensure resources are directed to regions and communities that are most in need … We must know where the underserved and unserved areas are located. Mapping will help us better position New York to receive federal stimulus dollars aimed at improving broadband coverage.”

-- Edward Reinfurt Executive Director NYSTAR Chair, NYS Council on Universal Broadband Government Initiatives Action Team Chair, Council Member

“I have a particular interest in improving wired and wireless broadband access in the State’s rural areas, and in exploring how ‘open access’ models can spur competition and serve as a platform for innovation and job growth. Expanded broadband infrastructure and enhanced digital literacy will enable our communities to be competitive in the global economy and help us retain and attract the young professionals so crucial to community vitality.”

-- Howard Lowe Director of the Technical Assistance Center SUNY Plattsburgh and Council Member “Universal high bandwidth Internet access is essential for New York to maintain its leadership position in the innovation economy. We live in a networked world, where Internet access to information is critical for enhancing education, expanding research and developing technologies of tomorrow.”

-- John Kolb Vice President for Information Services and CIO, Rensselaer Polytechnic Institute, Council Member

GUIDING PRINCIPLES The following Guiding Principles were adopted by the NYS Council for Universal Broadband to guide decision making and planning, which are to: •

Engage Collaborative Broadband Program Development to sustain an integrated approach to advance broadband access and use in rural and metropolitan New York through initiatives proposed by the New York Council for Universal Broadband.

•

Establish a Broadband Program Management Office to serve as an operational base for the centralized management of broadband projects across the state.

•

Accelerate Infrastructure Build Out Using Existing Public and Private Assets and Streamlined Policies to facilitate the deployment of infrastructure necessary to achieve broadband accessibility across New York State by advocating for streamlined processes, government policies and sharing existing broadband assets when feasible to increase speed to market.

•

Leverage Government Enterprise Purchasing Power for Procurements to maximize procurement opportunities throughout the state to stimulate investment in broadband infrastructure and adoption rates. This includes taking an inventory of specific state assets to obtain optimal positioning when negotiating new telecommunication provider agreements with the goal of driving down costs of acquisition and ongoing support.

•

Stimulate and Aggregate Demand for Sustainability to assist community leaders and broadband customer groups, such as local councils and business development organizations, to aggregate broadband project plans to seek appropriate funding at the state and federal level, and to successfully complete funded projects.

•

Foster Public/Private Partnerships to develop and maintain parity in price and availability of broadband between urban and metropolitan New York.

•

Advocate for a Broadband National Policy to ensure New York’s broadband needs and priorities are represented accurately in the National Broadband Plan, by providing a leading effort to define National Page 25 of 64

Broadband Policy, and ensure that the State receives its fair share from national funding programs. •

Implement Innovative and Cost-Efficient Technology Solutions to develop and encourage innovative ways to leverage broadband infrastructure to stimulate demand and encourage higher levels of usage. Examples include: o o o o o o

Public Internet Kiosks; Multimedia and Film Production; E-Government Applications; E-Commerce; High-Performance Computing; and Online Learning.

•

Measure Broadband Performance and Impact to continue to measure and monitor all key performance indicators, and make refinements to the broadband strategy and implementation plan to measure both the availability and the use of broadband technology across the state.

•

Practice Inclusiveness and Require Supplier Diversity to Engage Key Stakeholders to build on a principle of inclusiveness by engaging public, private, and institutional stakeholders who share a common vision and strategic goals with Governor Paterson. Include minority and women owned business enterprises (MWBE), and small businesses across the state to achieve the goals of the Universal Broadband Strategy.

GOVERNANCE STRUCTURE

Strategic oversight for the New York State Universal Broadband Program is the responsibility of the New York State Council for Universal Broadband, consisting of state agency executives, public and private community partners, higher education leaders, municipal associations, and broadband subject matter experts. The Council is chaired by the New York State Chief Information Officer.

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Work of the Council is performed through five Action Teams. The Council meets quarterly and the Action Teams meet at least once per month. Although not formal members of the Council, the private sector provider community participates on Action Teams to ensure a comprehensive view and approach to broadband development and programming is recognized. The five Action Teams and their strategic focus are: Broadband Network Infrastructure Access Action Team This Action Team focuses on mapping the state to baseline areas with and without broadband access infrastructures. This mapping effort focuses on unserved and underserved rural and urban communities. The mapping includes existing and planned state-owned networks. Also, this Action Team mobilizes private, public and academic expertise to implement innovative technologies for delivering cost-effective and reliable broadband Internet services. Finally, this team develops recommendations and a plan to leverage current networks and infrastructures to accelerate statewide coverage. Digital Literacy and Community Outreach Action Team This Action Team focuses on programs to address affordability, computer ownership, and adoption, digital literacy, and consumer education. It focuses on proficiency training and exploring computer procurement incentives for those trapped in the digital divide. Also, the Action Team focuses on raising awareness and educating citizens about the benefits of universal broadband to improve their quality of life. e-Government Applications for Low-Income Households Action Team This Action Team focuses on improving and increasing access to government services offered online. The Action Team promotes the development of open, simple and secure online applications with measurable outcomes. An initial group of “early adopters” of government services have been identified to integrate into digital learning programs. Economic Development and IT Workforce Development Action Team This Action Team focuses on building stronger economies, promote the economic growth of New York State by increasing business activity, identifying and implementing public/private partnerships, and determining strategies to create and maintain a skilled and professional workforce by leveraging broadband to accelerate job creation in unserved and underserved communities. Governmental Initiatives Action Team This Action Team focuses on optimizing existing public assets and locally-based initiatives to increase broadband penetration and use through current or planned assets and infrastructures. Additionally, this Action Team monitors federal, state and local government initiatives and makes policy recommendations relevant to advancing the Page 27 of 64

broadband strategy and goals. This Action Team develops recommendations for future policy, legislation, or other regulatory advocacy objectives which enable the New York State Universal Broadband Strategy priorities to be achieved.

NEW YORK STATE GRANT ADMINISTRATION The New York State Universal Broadband Grant Program is designed to encourage local communities to deploy “last mile” broadband infrastructures and develop digital literacy programs to ensure households on the wrong side of the digital divide have skills needed to participate fully on the Internet and increase adoption. NYS CIO/OFT administers the NYS Universal Broadband Grant Program, with guidance and recommendations from the Council. Grants are awarded through a competitive grant application process from eligible entities, as defined in the state’s legislative appropriation (e.g. communities and organizations that bring together parties committed to collaborative public/private partnerships). New York State’s first Broadband Grant Program was initiated in late 2007. The State Legislature appropriated $5 million in the FY 20072008, and $7.5 million in FY 2008-2009 for broadband grants in underserved and unserved, urban and rural communities. The grants required a matched funding ratio of at least 1:1, where eligible applicants guarantee $1will be provided for each $1 awarded by the state. Applicant commitments were in the form of cash, in-kind goods and services, or a combination. The state encouraged public/private partnerships and community based collaborations to ensure sustainability beyond the state’s funding. The result was a 3:1 matching level. The broadband grant criteria favored proposals that were comprehensive, reaching the highest percentage of neighborhoods, and engaging partners to increase the number of households that own computers and connect to this ever more powerful broadband infrastructure. In March 2008, Governor Paterson announced the first round of grant awards for the following types of broadband initiatives. •

Services and expenses related to local, regional, and state activities to facilitate increased physical access to broadband Internet services statewide. Such services may include research, design, implementation, operations,

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management and administration of programs related to infrastructure initiatives to facilitate physical access to communities and entities that lack access. •

Services and expenses related to local, regional and state activities to provide equal and universal access to broadband Internet services for underserved rural and urban areas, including schools and libraries. Such activities may include research, design, implementation, cooperative service delivery initiatives among public, private, and/or not-for-profit organizations, and shared use of infrastructure or other resources.

PERFORMANCE IMPACT MEASUREMENT The New York State Universal Broadband Strategy will be measured for community impact using a pre-defined set of evaluation criteria based on objective national standards for consistency of reporting, accountability, and transparency. These national standards enable the state to compare its progress against other states and other countries using accepted broadband benchmark measurements. The criteria will be developed and approved by the NYS Council for Universal Broadband and will measure progress in the following four areas which will be tracked and posted on the Council and the New York State Broadband Stimulus Websites: • • • • •

Change in Average Statewide Broadband Speeds; Change in Average Statewide Broadband Coverage Rates; Change in Average Computer Ownership and Adoption Rates of Communities; Change in Average Broadband Penetration Rates; and Change in New Digital Economy Index Measures.

The commitment to a connected broadband infrastructure in New York is a continuum with aggressive strategic goals for speed, coverage, adoption, and penetration by 2010, with the expectation this is just the beginning of placing New York State on a path to be at the forefront of this initiative.

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For acceleration of broadband penetration and increased network speeds, New York State divides roughly into two regions: the “Digital Corridor” and the “rest of the state”. The “Digital Corridor” includes the greater New York City region and areas near the Thruway. The “rest of the state” is defined as the area more sparsely populated and, distant from the main fiber right of way.

S PEED G OALS

"High speed internet connectivity has become a prerequisite for doing business in today’s global economy. Increasing its availability and affordability will help small businesses compete on a broader scale, assisting their growth and attracting dollars to New York, This major initiative will make it easier for individuals and businesses to achieve their potential."

-- Robert McNary Regional Director Empire State Development Corporation and Council Member

By the year 2010, the goal is to achieve an average network connectivity speed of at least 1 megabit per second in each direction. In the Digital Corridor, the goal by 2010 is to be at least 20 megabits per second in each direction. Looking farther out, by 2015 the goal is to achieve an average network connectivity speed of at least 20 megabits per second in each direction, and 100 megabits per second in each direction within the Digital Corridor. For some parts of New York, (e.g. the Adirondack Park), environmental considerations will likely make wireless a necessary component of achieving 20 megabits per second speeds. The FCC’s auction of spectrum in the 700 MHz range, with portions set aside for such use, gives the state a rich new resource. Progress will be closely tracked throughout the broadband grant process. The expectation is that with increased penetration and adoption, will come increased Page 30 of 64

benefit to the household and community; increased penetration drives further adoption and strengthens business for the providers. Everyone wins! The NYS Council for Universal Broadband will look at these goals and prepare an annual report on the progress of achieving the strategic goals using the four measures described in this section. The actual measures will be benchmarked against other states and counties using the FCC data and other agreed to authoritative sources.

P ERFORMANCE M EASUREMENTS

The success of the NYS Universal Broadband Strategy will be measured against specific key performance indicators and benchmarks in compliance with federal guidelines. The broadband performance impact measures adopted by the Council are designed to ascertain effectiveness of deployed initiatives to achieve the strategic goals outlined in this document. Table 3 outlines the performance measures used by the Council to ensure investments and projects are making progress toward closing the digital divide and achieving strategy goals.

Table 3: Broadband Performance Impact Measurements Measurement

Description

Metric Used

Broadband Availability

Coverage to unserved and underserved, urban and rural communities

Geographic Data from GIS Mapping Initiative

Broadband Adoption

Household and commercial take rates where broadband is available

Household Adoption Rates

Broadband Competition

Competition for better service offerings and more competition

Providers Servicing Target Unserved and Unserved Areas

Broadband Affordability

Universal access to all demographics levels

National Comparisons and Industry Benchmark Rankings

Broadband Usage

Encouraging Internet users across various sectors (Public, Private, and Institutional)

Digital Economy Index Survey, Digital Government Survey, and E-Government Surveys on State and national Rankings

Broadband Speed

Supporting the highest speed possible

Industry Surveys with Public Validation

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BROADBAND STIMULUS PRIORITIES – NYS TARGET OPPORTUNITIES Improved broadband capacity and capability across the state will positively impact many areas of our economy and society. Business applications for reaching new customers and broadening markets come to mind quickly. But public safety applications are widespread and help protect citizens. Broadband is extremely important in education and job skills training. Many forms of entertainment that people and families enjoy and relax with come to us as a result of high speed Internet. If the need for affordable broadband is ubiquitous today, what will it be tomorrow? The following section illustrates examples of how broadband is used in a variety of forms today and the targeted applications planned for New York State in the future. These applied applications are the focus of stimulus funding requests for New York State and are grouped in three broad categories: Broadband Infrastructure Build Out; Digital Literacy and Sustainable Adoption; and Economic and Workforce Development.

BROADBAND INFRASTRUCTURE BUILD OUT H OMELAND S ECURITY AND PUBLIC S AFETY I NTEROPERABILITY

Wired and wireless broadband technologies have the potential to provide first responders across New York State with anywhere, anytime access to a wide array of information and data not previously available. Access to this information will enhance crime fighting, increase community protection, and improve scene of incident response by first responders. As counties upgrade and expand deteriorating emergency radio networks, systems can be designed using accepted industry standards for interoperability. Through gateways counties can connect disparate technologies across a region to achieve mission critical, high priority public safety services. A robust broadband network operating in the background will interconnect systems and help first responders achieve effective interoperability – a life saving tool. Keeping the public informed of emergency situations can

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save lives and property. New alert systems can transmit valuable, real-time information to citizen’s mobile devices. A robust wireless broadband service will support innovative information sharing applications. More and more public safety applications are delivered wirelessly and straight to a first responder’s mobile device -- laptop, PDA, cell phone. Information such as maps, building diagrams, mug shots, finger prints, and criminal records, medical records, and real-time video can be transmitted wirelessly. This on-demand service is vital for first responders to respond quickly to incidents and is possible with a high speed broadband network. M APPING N EW Y ORK S TATE B ROADBAND C OVERAGE

In 2008, the New York State Broadband Council began an initiative to map broadband coverage across the entire state. The statewide mapping initiative is designed to determine where broadband coverage exists and where gaps in urban and rural communities remain so state and federal broadband funds are focused on unserved and underserved, urban and rural communities. New York State must enable every citizen and business in every community to have Internet services for economic development and social well being purposes. Even though New York may have satisfactory coverage in most urban areas, we have gaps in some urban and many rural areas. The state still needs to find out if the speeds are too slow in certain parts of the state, particularly the rural areas to support needed applications and service levels. Developing and maintaining an accurate broadband map is a critical component of the New York State Broadband Strategy to ensure broadband is also delivered to the most underserved and unserved areas across the state. To develop the map, members from the public and private sectors who serve on the Infrastructure and Government Initiatives Action Teams of the Council, joined forces to engage in a process to develop and validate the mapping methodology. The map will be updated annually, in collaboration with broadband providers, local government entities and the public, to the street level, so the State can accurately measure broadband access, availability and adoption rates. Increasing availability, closing all remaining gaps and ensuring competitive speeds, coupled with high adoption rates, will enable New York State to recapture and sustain a competitive advantage domestically and globally. Page 33 of 64

The predictive model is shown in Figure 5 below. The map shows the availability rates in shaded colors to show progressive areas of concentration. White areas have no broadband service at all. Until the map is one dark color, many communities will remain underserved and unserved.

Figure 5: NYS Predicted Availability Broadband Map

NYS Predicted Availability Broadband Map

95-100% 75-95% 50-75% 1-50% 0% Excluded Areas

Source: NYS Office of Cyber Security & Critical Infrastructure Coordination

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“Many of our correctional facilities are located in and many of our staff lives in - remote areas not currently served by high speed universal broadband Internet. This initiative should help not only our employees, but also the communities that are home to state prisons and ultimately all of New York through technological improvements for prison programs essential to the rehabilitation of inmates.”

-- Brian Fischer Commissioner NYS Department of Correctional Services and Council Member

DIGITAL LITERACY AND SUSTAINABLE ADOPTION D IGITAL L ITERACY AND R E - ENTRY F ROM C ORRECTIONAL I NSTITUTIONS

The State Department of Corrections proposes to implement an innovative program designed to promote digital literacy standards for all inmates participating in re-entry initiatives. The purpose is to ensure inmates released from the New York State prison system are trained to use computer and broadband services to improve their lives and increase their chances for success after being released back to the community. The agency estimates up to 1,800 inmates will be trained and certified as digitally literate once the program is fully operational. The program includes higher-level thinking and analytical skills critical to an inmate’s understanding of digital literacy, critical thinking, creativity and innovation, communication and collaboration, technology usage for personal development, digital citizenship, and ethics. Specific computer skills such as basic computer knowledge; basic software skills; basic internet communication and security skills; and wow to effectively use information will be taught.

“Digital literacy impacts our everyday lives from obtaining the latest news to banking to searching and applying for jobs. Digital literacy training is critical in preparing users to fully engage the capabilities of the 21st century Internet."

-- Dr. Joseph Bowman Jr. Regent, 3rd Judicial District Associate Professor University at Albany Director Center for Urban Youth and Technology, Council Member

Once support structures within the correctional facility are no longer available, inmates often leave without continuing access to training tools needed to build successful work skills. An inmate working toward a graduate equivalency degree may never obtain the credential if prison release comes before the courses are completed. Through technology, training experiences can be provided over digital media, where there is no physical barrier to continuing educational development. This approach strengthens re-entry programs. " C OMMUNITY T ECHNOLOGY C ENTERS

Increasing digital literacy and training programs is critical to achieving success. Private or public digital literacy training centers are viewed as important components to increase broadband demand and technology adoption in the households. The proliferation of centers, which can be a library, a school, a church, a senior citizen home, a prison, or recreation centers should be encouraged, funded, supported and sustained.

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H EALTH AND H UMAN S ERVICES W EB P ORTALS

Expansion of the state’s web portals to deliver cost-efficient services is an integral part of the broadband strategy to increase digital literacy. On the heels of the successful launch of MyBenefits.gov, by the Office of Temporary and Disability Assistance (OTDA), the state will migrate other health and human service agencies to engage constituents who are least likely to have Internet services. This portal will be available in Community Technology Centers. Broadband services that increase demand and digital literacy levels, coupled with job creation goals should receive priority in grant funding. Interagency and intergovernmental broadband solutions leverage these assets to expand use of the Internet for delivering government services should be considered for future funding.

D IGITAL L IBRARY C ENTERS

Public libraries are among the most ubiquitous community centers in the state, reaching far into rural areas and deep into urban neighborhoods. Libraries are an ideal end point for distribution of workforce development and other governmental services. With trained librarians to guide customers, and sufficient bandwidth, libraries can be important delivery vehicles. Library usage across the nation and the state is up by double digits. A recent poll by the New York Library Association showed 80 percent of public libraries have helped a customer look for a job, and 75 percent of public libraries have helped a customer access public assistance over the past three months. Historically, library usage tends to increase during tough economic times as families seek to save money by using the free resources. People without Internet or computers at home use free Internet access and assistance of library staff to search for jobs and new careers, access public assistance Page 36 of 64

“The vision of MyBenefits.gov is to provide a single site for New York State’s families and community partners to connect with benefits, services and work supports – an egovernment hub for human services … Ultimately, MyBenefits.gov will allow individuals and families to learn about and apply for an array of work supports, customized to fit their unique circumstances, by answering one set of simple questions online.”

-- David Hansell Commissioner NYS Office of Temporary and Disability Assistance, Council Member

“Libraries are an essential resource in their communities for people seeking jobs, accessing public assistance programs or looking to improve their computer and literacy skills. The economic downturn has highlighted the need to improve broadband capacity – both speed and availability at libraries.”

-- Michael Borges Executive Director New York Library Association, Chair of NYS Broadband Council Digital Literacy Action Team, Council Member

“We need to use stimulus dollars in a strategic way to maximize their impact on job creation and economic growth. I believe fostering broadband development and making it accessible to more New Yorkers will allow businesses to expand into new markets and communities to grow.”

-- Anthony Giardina Assistant Secretary for Economic Development and Upstate Recovery NYS Executive Chamber

programs, or enroll in computer and digital literacy classes to improve their employability. Since public libraries have a presence in almost all communities across the state, and in recognition of their expertise in providing information and capacity to serve diverse populations, state agencies can officially engage or “deputize” public libraries to supplement the state’s efforts to serve the unemployed and disadvantaged population.

ECONOMIC AND WORKFORCE DEVELOPMENT E CONOMIC D EVELOPMENT

Nations, states, and communities are rapidly coming to the understanding that broadband deployment is critical for success in the “new economy,” and those who do not have access to adequate broadband service will lag behind. Because many communities, businesses and residents are burdened from being unserved or underserved, and because broadband deployment ends up being a regional and local infrastructure issue, a survey was conducted to provide an understanding of how economic developers think broadband is serving (or not serving) communities, and how broadband impacts economic development opportunities. The survey was implemented with the support of Empire State Development Corp. (ESD) and the New York State Economic Development Council. “The Department of Labor is proud to be a partner in this initiative. By bridging the digital divide and providing more technology training, we will develop a highly skilled workforce that is better able to meet the needs of employers competing in today's global economy.”

--Mario Musolino Executive Deputy Commissioner NYS Department of Labor and Council Member

States and the federal government realize broadband is critical to achieve and sustain a competitive position in the new economy. The new economy is not in technology industries, and research and development sectors alone, but consists of a much broader array of businesses. The academic and research prowess in New York must embrace deployment of the most advanced broadband systems if New York State hopes to retain existing companies and recruit new ones. Many companies indicate broadband service is as important as conventional infrastructure such as water and sewer when deciding to locate or relocate a business. W ORKFORCE D EVELOPMENT

One-Stop Centers, operated by the New York State Department of Labor, are the community focal points for access to career services for the Page 37 of 64

underemployed and unemployed. There are currently 600,000 customers registered with the One-Stop system in the state. The recent downturn in the economy has resulted in a doubling of the number of Unemployment Insurance (UI) customers coming into One-Stop Centers. In December 2008, more than 45,000 customers attended scheduled appointments at One-Stop Centers. In many local areas, the One-Stop Center Resource Room is the only Internet access available for customers to apply for unemployment insurance benefits, perform job searches, write resumes, apply for jobs using the Internet; access customized online training, and access supportive services from a wide range of public and private resources. The implementation of broadband service delivery approaches in the centers across the state is crucial in preparing the workforce for jobs in advanced manufacturing, nanotechnology and other technology-based industries. These industries represent the foundation for New York to regain a competitive advantage in global markets. High speed broadband will increase efficiency in searching for and applying for jobs online at the centers. Search engines and job applications will load and run faster resulting in more customers able to use the resource rooms. Through videoconferencing, career development services can be delivered to multiple centers simultaneously and interactively at a lower cost of operation. Fewer state staff can reach a greater number of customers, delivering career counseling services and skills workshops. The implementation of videoconferencing combined with improved broadband capability will greatly increase the availability of services to much larger numbers of customers without increasing staff. This approach will turn One-Stop Centers into technological hubs where community members can access the latest technology to receive high quality workforce development services. Exposure to advanced technologies would further reinforce the need for customers to begin training now for the jobs of the future. W ORKFORCE D EVELOPMENT T HROUGH G AMING

Though many people feel playing computer games is an activity of young people, the generation of gamers has now reached middle age adults who first used computer games fifteen and twenty years ago. Gaming is widely known to be an effective online learning tool if the entertainment content is as high as the knowledge content. It is estimated 90% of students at all ability levels can rapidly acquire knowledge through gaming. Computer games oriented to workforce development job readiness and job skills have immense potential for both effectiveness and reach.

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The New York State Department of Labor plans to develop a career exploration game. Gamers can bring knowledge already acquired in their real lives to participate in online microcourses. Gamers will acquire real knowledge needed to solve puzzles embedded in the game. For instance, to learn to simulate construction of an online bridge to cross a digital river, a gamer can take a micro-course in structural geometry. The gaming experience would be directly connected to real world acquisition of credentials leading to good jobs with career ladders. Broadband access makes it possible to develop these skills anywhere at any time.

T ELEWORK AND D ISTANCE L EARNING

Geography can be as much a barrier to finding quality jobs or learning as anything else. Technology that is easily available can enable telework, or the completion of computer-supported jobs from a location apart from a business’s primary physical location. Once enabled, telework does not discriminate on the location of business and employee. Many small to mid-sized businesses have begun experimenting with telework to expand their labor pools and attract a different breed of worker. From remote parts of the state, telework can provide an ideal way for students to participate in internships at another part of the state. For instance, a college student in Potsdam, New York could participate in an internship in New York City without ever traveling to Manhattan. There is a wide assortment of online collaboration tools to build a virtual workplace where interns and employers can interact. Through low-risk intern situations, employers can become comfortable with telework as a means to grow their businesses and improve general labor market fluidity.

S OCIAL N ETWORKING

Social networking has become very popular for its personal and professional interaction. The technology is focused on building, verifying and sustaining online social networks for communities of people who share interests and activities, or who are interested in exploring the interests and activities of others. Web 2.0 tools to enable social networking, require broadband services to connect individuals and entire communities.

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V IRTUAL M EETING P LACES

A keystone of geographically collocated workers is their ability to interact on demand to discuss work issues, collaboratively solve problems, exchange general information, and simultaneously receive instruction. Certainly virtual environments are not to the point where they are equal to the live presence of individuals. However, tools available in cyber locales can go far to simulate the traditional workplace. Among these tools are: • • • • • •

Textual Discussion Forums; Video Conferencing (Including One-To-One Video Chat); Audio Conferencing (Including One-To-One Audio Chat); Collaborative Editing; Document Exchange Platforms and Shared File Space; and Archival Document Repositories.

D IGITAL C OURT H EARINGS

One of the fundamental characteristics of American jurisprudence is to have courts located in communities so citizens are not disadvantaged in their effort to obtain due process simply because they must travel to a court center in a capital city. The cost of distributing courts to communities is costly. Through videoconferencing technologies, and the high speed broadband that supports it, any citizen can find access to legal procedures and resources established to conduct fair hearings and administer justice. T ELEMEDICINE , T ELEPSYCHIATRY AT F AMILY AND C HILDREN ’ S I NSTITUTIONS

Advanced broadband networks offer extraordinary opportunities to extend medical and social services expertise in primary health care facilities to secondary and tertiary facilities linked to other primary centers by advanced networks. Broadband provides the opportunity to extend healthcare delivery (e.g. monitoring and digital “house calls”) to homes with sufficient broadband. The ability to bring world class medical expertise to all areas of the State begins to balance the medical care and social services disparity in rural and urban regions. Broadband breaks down these significant barriers by allowing patients and families located in rural communities throughout the state to receive the same quality of care as those in larger more affluent communities. In addition to health care services, the business side of heath care can allow specialists to practice from anywhere at any time and reside where they see fit while still being able to participate with world-class institutions Page 40 of 64

“The use of broadband can dramatically change the way New York State agencies communicate information to the people. Technologies like Web 2.0 have provided an opportunity to increase visibility in health education allowing us to deliver a compelling and engaging message to a broad audience using video.”

-- Dr. Richard F. Daines Commissioner NYS Department of Health Council Member

located in urban areas of the state. Concurrently, giving the ability to telecommute can give specialists and social workers a better quality of life in New York’s efforts to retain top talent. Higher Education Research, Development, and Commercialization New York State enjoys extraordinary higher education institutions engaged in research and development initiatives. Consortia of academic institutions working with public and private partners are engaged in the latest technological research and development initiatives. This idea engine of enormous power is a crucial tool for revitalizing New York and the U.S. economy, an impact that we can enhance by accelerating the commercialization of research and development projects. New York’s major academic institutions benefit from high capacity, high speed broadband network resources with capacities up to a million times that of domestic broadband. Extending that kind of robust networking capacity to all the state’s institutions of innovation will increase the “speed-to-market of the ideas and innovations they generate, and will foster collaborative research across the country and across the globe.

“The use of broadband has a profound impact on colleges and universities across New York State and plays an integral role in enriching today's college environment. Broadband keeps education and project funding information within easy reach of students and faculty, provides for speedier access to educational research, and allows for the faster exchange of ideas and information campus wide.”

-- James Ross President NYS Higher Education Services Corporation

For New York to remain a leader attracting federal research dollars it must be closely aligned with the federal government’s goal and objectives for its programs. By making necessary improvements to our current research network infrastructure and staying ahead of the curve on strategic mandates of federal research agencies, New York research universities will have a considerable advantage in leveraging federal research dollars. In keeping with this premise, New York State is home to major supercomputing centers, e.g., Rensselaer Polytechnic Institute’s Computational Center for Nanotechnology Innovations, Stony Brook/ Brookhaven National Lab, and the University at Buffalo. Leveraging existing infrastructure and connecting “last mile” systems with high speed broadband will enable New York to create jobs as a result of accelerated research and commercialization initiatives. B ROADBAND IN THE A RTS

New York State has a long history of supporting arts and cultural endeavors. The tradition would be further enhanced, and New York’s cultural economy stimulated, with a greater understanding that the arts economy is also a place where global competition is serious business. Whether it is animation in movies, high Page 41 of 64

definition television or new audio resonance systems, consumers constantly seek greater entertainment experiences. Technology applications in the visual and audio arts are numerous. Broadband technologies will create a limitless canvass for the creative minds.

FEDERAL STIMULUS PROGRAMS The American Reinvestment and Recovery Act (ARRA) of 2009, referred to the as the Stimulus Act, provides unprecedented opportunities to accelerate the build out of broadband infrastructure; to stimulate demand for online services; and to encourage development of digital literacy programs to increase adoption. Unlike some countries, there is no formal national broadband policy for the United States. The Federal Communication Commission (FCC) is addressing this void and plans to develop a national plan by 2010. Currently, the country lags behind many other nations who do have a policy for broadband availability, affordability, and speed. The Stimulus Act has been described by President Barack Obama and Congress, as a ‘down payment’ in several key areas of infrastructure build out. As such, the established criteria and goals stated as eligibility and considerations for grant funding can be described as the initial framework for a National Broadband Policy to be defined as stipulated in the legislation.

GOALS OF THE BROADBAND STIMULUS PROVISIONS The five stated goals for the stimulus broadband grant provisions in the American Recovery and Reinvestment Act include: • • • • •

Closing the broadband gap across the United States, extending access to users in rural and urban, underserved, and remote areas; Stimulating investment in broadband infrastructure and training programs; Creating jobs to deploy and support broadband services; Ensuring schools, universities, libraries, community centers, job training centers, hospitals and other institutions have high-speed Internet access; and Encouraging the rapid deployment of applications which increase demand for broadband capabilities.

The five strategic goals are aligned with the New York State Universal Broadband Strategy as outlined in Table 3 below. As shown, there is close alignment between federal and state goals.

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Table 3: NYS Goal Alignment With FCC/NTIA/USDA Goals NYS Goal Alignment with FCC/NTIA/USDA Goals FCC/NTIA/USDA Broadband Goal

NYS Broadband Goal

Broaden the deployment of high-speed broadband access to schools, universities, libraries, community centers, job-training centers, hospitals, and public safety personnel to close broadband gaps Encourage demand for broadband

Ensure all New Yorkers have universal broadband access anytime, from anywhere, by anyone

Ensure harmonized regulatory treatment of competing broadband services

Adopt net neutrality position to provide for maximum competition for providers to create a level-playing field and encourage investments in underserved and unserved areas

Encourage and facilitate an environment that stimulates investment and innovation in broadband technologies and services.

Implement policies and strategies that incent public and private providers to accelerate broadband build out and seek to increase digital literacy to increase household and business “take rates.”

Create jobs

Build the workforce of tomorrow

Adopt platform-neutral position and ensure maximum technologies to accelerate broadband build out and adoption

F EDERAL B ROADBAND S TIMULUS P ROGRAMS

The National Telecommunications Information Association (NTIA), within the U.S. Department of Commerce, manages the Broadband Technology Opportunities Program (BTOP), of which $4.2 billion is available to state and political subdivisions, municipalities, and private entities, if they meet the requirements of being in the public interest. The United States Department of Agriculture (USDA) is the administrator of a Rural Broadband Grant Program (RUS) of which $2.8 billion is available for projects providing service to underserved and unserved, rural areas. (Please see the NTIA and RUS Fact Sheets in the Appendix.) New York State CIO/OFT, in partnership with the NYS Public Service Commission (PSC), and the NYS Foundation for Research Technology and Innovation (NYSTAR), are leading New York State’s efforts to ensure stimulus funds align with federal guidelines and the state’s broadband strategy to meet the goals of the stimulus bill. Page 43 of 64

The New York State broadband stimulus website is available at: http://www.nysbroadband.ny.gov/ to educate citizens on broadband provisions contained in the federal legislation. Information about both broadband programs is available and updated as provided by the federal government and the state. Since the passage of the Stimulus Act, Governor David A. Paterson’s Recovery Cabinet has captured and recorded hundreds of broadband requests from across the state. A majority of requests are to extend broadband for “last and middle mile” deployments. These are areas needing broadband connections from a street, a household, a business or an organization. Based on the NTIA and USDA broadband eligibility criteria, public and private entities can apply directly for funds to build out broadband infrastructure. Eligible entities can also apply for training programs to increase adoption rates and demand.

R ECOMMENDED R OLE OF THE S TATES

The New York State Universal Broadband Strategy is based on the principle of optimizing community-based public/private partnerships for sustained broadband capabilities and programs. The NYS Broadband Strategy also requires matching funds at the local level, by public and private partners, to ensure local ownership of deploying and maintaining infrastructures for projects granted state or federal funds. This approach is consistent with the federal guidelines. The Council believes the state is best positioned to coordinate and provide technical program oversight for the projects, as directed and awarded by NTIA and USDA. Because the state, working through the Broadband Council, is aware of initiatives across the state, the risk of redundant and inefficient funding is minimized. The state can ensure accountability and providing transparency, key tenets of the Stimulus Act. This approach affords uniformity and standardization of project implementation and reporting requirements, as required by state and federal priorities. This position is consistent with the National Governors Association (NGA) and the National Association of State Chief Information Officers (NASCIO). U NDERSERVED AND U NSERVED C OMMUNITIES

While the mere availability of broadband Internet services remains the obvious impediment to the sustainable adoption of broadband to citizens across the state, availability to the unserved is not the only obstacle. There remains an element of the population who has access to broadband services, but does not choose to use the services. Thus, the low adoption rates in New York State. Page 44 of 64

This underserved population is more difficult to measure, and more complex to analyze. Many independent organizations have conducted surveys on broadband Internet “take rates” to measure the adoption of broadband services, where it is available. Through these surveys we can identify some of the impediments to the adoption of broadband Internet services. While not ignoring the issue of access to the network infrastructure, issues such as affordability, perceived lack of compelling value, lack of access to devices, and security are high on the list of impediments to adoption. (Pew Internet & American Life Project, 2008) These underserved populations are a priority for funding.

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Table 4: Quick Facts About the Broadband Stimulus Programs

American Reinvestment and Recovery Act (ARRA) Broadband Provisions Comparison Quick Facts About the Broadband Stimulus Programs Rural Utilities Services (RUS) Broadband Program

Funding

$2.5 Billion –Broadband Loans and Grants for Rural Areas

No specific breakdowns. Funding will be provided with a mix of loans and grants.

Geography Speed Provisions Funding Dates Oversight and Reporting

Grant Goals and Provisions

75% of area to be served must be rural without sufficient access to broadband. Technology Neutral. No minimum speed requirements. None specified. A joint application process and alignment with the Broadband Technology Opportunities Program (BTOP) grant program is planned. Agriculture Secretary will submit report detailing planned spending obligations no later than 90 days after enactment.

Priority will be given to applications for broadband systems delivering end users a choice of more than one service provider.

National Telecommunications and Information Administration (NTIA) Broadband Program $4.7 Billion – NTIA Broadband Technology Opportunities Program. (The Federal share of all projects shall not exceed 80%, a local match of 20% is required unless financial need is demonstrated and the Assistant Secretary of the U.S. Department of Commerce grants a waiver.) $3.89B For Competitive Broadband Grants $350M For the Data Improvement Act, and Development of a National Broadband Map $250M For Adoption of Broadband Service Grants $200M For Expanding Public Computer Capacity Grants $ 10M For Audits and Oversight Administration Unserved: Underserved:

Not Defined Not Defined. Indicates considerations such as more than one provider, stimulating demand, increasing adoption rates, and increased affordability. Technology Neutral. More consideration will be given to grant applications that provide the greatest broadband speeds possible to the greatest population of users. All NTIA awards must be made by the end of fiscal year 2010. Projects must be completed within 2 years of receiving the grant award. Grant recipients must submit quarterly reports which will be made public regarding the use of the grant funds, and progress. Projects not meeting objectives can have funding revoked and committed to new grant applicants. Searchable public database of grant awardees and projects will be established. The purpose of the program is to provide broadband education, awareness, training, access, equipment, and support to: • Schools, Libraries, Healthcare Providers, and Universities • Organizations and Agencies that provide support to Low-income, Unemployed, Aged, or Otherwise Vulnerable Populations

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• Priority will be given to projects that provide service to the highest proportion of rural residents who do not have broadband services.

Job-Creating Facilities located within a State-designated Economic Zone

The purpose of the program is to improve use of broadband services by public safety agencies. The purpose of the program is to stimulate the demand for broadband, economic growth, and job creation.

Eligible Entities

Priority will be given to borrowers or former borrowers under Title II of the Rural Electrification Act of 1936 and for applications that include such borrowers or former borrowers.

Eligible applicants include the following: • State or Political Subdivisions • Non-profit Foundations, Corporations, Institutions, or Associations • Any Other Entities, including Broadband Service or Infrastructure Providers in which the Assistant Secretary of Commerce rules to be in the public interest. If the applicant is a state entity, the application must provide the source of the appropriate 20% match of the total project cost. Grants may be made for equipment acquisition, instrumentation, networking capability, hardware and software, digital network technology, and infrastructure for broadband services. Grants may be made to construct and deploy broadband service related infrastructure. Grants may be made to ensure access to broadband services by community anchor institutions.

Other Factors

Not less than one grant shall be awarded to each state. Consideration for grant approval should be made with regard to whether completion of the project would increase affordability of and subscribership to the greatest number of people. Applications supporting projects which provide the greatest broadband speed possible will be given more consideration. Applications supporting projects which enhance service for health care delivery, education, or children will be given more consideration. Applications from entities that are a socially and economically disadvantaged small business concerns will be given more consideration.

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OPITIMIZING FEDERAL BROADBAND STIMULUS FUNDING T HREE -A GENCY P ARTNERSHIP

CIO/OFT is the lead agency for implementing the New York State Broadband Stimulus Program. Partnering with CIO/OFT is the New York State Public Service Commissioner (PSC) and the New York State Foundation for Research, Technology and Innovation (NYSTAR) to ensure all aspects are well evaluated and integrated into the State’s approach. This interagency approach is necessary to ensure the most appropriate agencies are working collaboratively to oversee the many aspects of the State’s broadband strategy. This three-agency partnership is jointly performing the following responsibilities: • • • •

• •

• •

Preparing joint responses to the FCC/NTIA and USDA Request for Information (RFI) Comments; Conducting joint information sessions with the key stakeholders; Authoring and distributing online newsletters and websites; Holding individual broadband provider meetings to solicit comments and suggestions for enhancing the NYS Broadband Strategy and for advocating state and national policy; Capturing broadband project requests to ensure strategic alignment and compliance with federal guidelines; Preparing joint progress reports to the Governor’s Recovery Cabinet to ensure progress, accountability and transparency, as required by state and federal requirements; Mapping broadband coverage across the state; and Administering and monitoring grant programs as required by federal guidelines.

CIO/OFT, PSC, and NYSTAR are working with NYS Council for Universal Broadband and other state institutions and businesses to ensure maximization of federal stimulus funding to achieve the goals of the federal broadband provisions. The Council ensures alignment with the NYS Broadband Strategy. The State is best equipped to ensure funds are leveraged across the State to foster sustainable public/private partnerships which are community based with local support and matched funding. Page 49 of 64

A NNUAL F UNDING OF B ROADBAND P ROGRAMS

While federal funding and other grant opportunities can provide money for the foundations of a state broadband program, maintaining a stable broadband infrastructure requires sustainable annual funding. Securing funding can only be accomplished through universal fund legislation, or other recurrent and sustained funding sources. This funding is used for continuing digital literacy programs, sustaining high adoption rates, and stimulating the demand for Internet applications. Also, consumer education programs to increase demand and increase household adoption rates must be continuously funded until New York State recaptures a global competitiveness position. This will continue to be an ongoing challenge as governmental entities face budget deficits. Supplemental funding strategies will be pursued.

B ROADBAND G OVERNANCE T IMETABLE

The NYS Broadband Stimulus Program Office, a subgroup of the Governor’s Recovery Cabinet, is the support and planning group for the Broadband Stimulus program of New York State. The Broadband Stimulus Group is accountable to the Governor’s Recovery Cabinet for results and progress monitoring. The major activities which must be implemented to effectively govern broadband stimulus projects are shown in the Figure 6 below. As shown, the major activities at the onset of the Stimulus Act focused on organizing resources; establishing the Broadband Program Office; capturing broadband project requests across the state; and conducting information sessions around the state to increase awareness. Current focus centers on preparation for the RFP to be issued by NTIA and RUS Programs. New York State's Broadband Stimulus Strategy is a comprehensive plan involving a set of infrastructure projects, complemented by digital literacy educational program development, and comprehensive oversight by the NYS Council for Universal Broadband supported by the Broadband Stimulus Program Office.

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Figure 6: Broadband Governance Timetable

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APPENDICES

NYS COUNCIL FOR UNIVERSAL BROADBAND ACTION TEAMS B ROADBAND I NFRASTRUCTURE A CCESS A CTION T EAM

Purpose: The Broadband Infrastructure Action focuses on identifying and mapping the state’s baseline areas with and without broadband access infrastructures. This mapping effort focused on unserved and underserved rural and urban communities and includes existing and planned stateowned networks. The team mobilizes private, public and academic expertise to implement innovative technologies for delivering cost-effective and reliable broadband Internet services. Action Team Leadership Chair: Vice Chairs:

Dr. Timothy Lance, President and Chairman, NYSERNET Sharon Cates-Williams, NYS Deputy CIO John Kolb, VP and CIO, Rensselaer Polytechnic Institute, Computational Center for Nanotechnology and Innovation

Goals: • Collaborate with providers to map New York State to identify gaps in broadband coverage; • Foster public and private partnerships to build out broadband infrastructure by leveraging and sharing existing and new assets in underserved urban and rural communities; and • Develop strategies and recommendations to effectively incent the provider community to invest and accelerate broadband infrastructure build out. Page 52 of 64

2008 Achievements • Launched broadband mapping initiative for New York State to indentify unserved and underserved rural and urban broadband coverage. Broadband Impact Objectives • The Network Infrastructure Action team set a graduated list of broadband speed goals in 2008. These goals focus on achieving average network connectivity speed of at least 1 Mbps in each direction, and in the Digital Corridor, achieve average speed of at least 20 Mbps in each direction by 2010. By 2015, achieve network connectivity speed of at least 20 Mbps in each direction. • By 2015 in the Digital Corridor, the State will achieve an average speed of at least 100 Mbps in each direction. Finally, by 2010, New York State will achieve #1 ranking in median broadband Internet access speed, up from the current #4 ranking. Change in Statewide Broadband Coverage Rates • By 2010, New York State will achieve an average statewide coverage rate of 80% in populated areas. • By 2015, New York State will achieve an average statewide coverage rate of 90% in populated areas. 2009 Priorities • Formalize NYS broadband availability map to leverage federal stimulus funding; and • Implement a strategy to build out NYS broadband network.

D IGITAL L ITERACY AND C OMMUNITY O UTREACH A CTION T EAM

Purpose: The Digital Literacy and Community Outreach Action Team focuses on programs to address affordability, computer ownership and adoption, digital literacy, and consumer education. The team focuses on proficiency training, explores computer procurement incentives and programs to raise awareness and educate citizens about the benefits and use of broadband to improve quality of life.

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Action Team Leadership Chair: Vice Chairs:

Michael Borges, Executive Director, NY Library Association Dr. Joseph Bowman, Member, New York State Board of Regents Gail Brewer, Councilwoman, New York City

Goals: • Recommend a statewide digital literacy proficiency standard for state adoption by schools and other digital literacy entities; and • Develop strategies for state and local programs to increase consumer education to increase technology adoption in underserved communities. 2008 Achievements • Developed digital literacy standards to encourage Internet use by underserved populations and communities. The plan encouraged the use of the Internet and training on proper use; and • Developed consumer education proposal. Broadband Impact Objectives • The availability of online applications and services on the Internet is necessary to sustain demand for broadband access. A citizenry that is trained to leverage technology and Internet applications not only increases individual health and well-being, but spurs economic development, job creation, and a healthy environment. • To meet the goals of sustainable adoption of broadband and increased demand for online services, the Digital Literacy Action Team aspires to achieve the following goals. Change in Community Internet Use • By 2010, New York State will be ranked in the top 25, compared to the current 35th. • By 2012, New York State will be ranked in the top 20, compared to the current 35th. Change in Technology Usage in School • By 2010, New York State will be ranked in the top 25, compared to the current 36th. • By 2012, New York State will be ranked in the top 20, compared to the current 36th. 2009 Priorities • Ensure digital literacy and educational programs remain a priority to leverage available federal stimulus funding; and • Forge partnerships between state educational institutions, provider communities and local school districts for workforce training and educating our students. Page 54 of 64

E-G OVERNMENT A PPLICATIONS FOR L OW -I NCOME H OUSEHOLDS A CTION T EAM

Purpose: The E-Government Initiatives Action Team focuses on low-income and rural households. This action team focuses on improving and increasing access to egovernment services. The team promotes the development of open, simple, and secure online applications with measurable outcomes. “Early adopter” government services focusing on low-income and rural households have been identified as priorities and are being integrated into digital learning programs. Action Team Leadership Chair: Dr. Daniel Chan, CIO, NYS Office of Temporary and Disability Assistance Vice Chairs: Ed Hemminger, CIO Ontario County and President, NYSLGITDA Patrick Hooker, Commissioner, NYS Department of Agriculture and Markets Goals • Launch myBenefits.gov health and human services web portal; • Develop a set of best practices to identify and assist e-government applications for successful community outreach; and • Integrate early adopter e-government applications into digital literacy training programs in local communities. 2008 Achievements • Developed early adopter e-government applications into training curriculum for local technology centers; • Developed self-paced training for select e-government applications; and • Identified state government services to include in digital literacy training. Broadband Impact Objectives • By 2010, increase overall eFood Stamps and eHEAP enrollment by 15% over the 2007 baseline level, with at least 20% of the applications submitted via Internet. • By 2012, increase overall eFood Stamps and eHEAP enrollment by 30% over the 2007 baseline level, with at least 30% of the applications submitted via Internet. • By 2015, 60% of eFood Stamps and eHEAP applications should be submitted online. 2009 Priorities • Expand myBenefits.gov health and human services web portal; and • Leverage existing e-government applications to enlist the next wave of state government agencies and services and integrate into digital literacy training programs. Page 55 of 64

E CONOMIC D EVELOPMENT AND IT W ORKFORCE D EVELOPMENT A CTION T EAM

Purpose: The Economic Development and IT Workforce Development Action Team focuses on building stronger economies and promoting the economic growth of New York State. This will be accomplished by increasing business activity, identifying and implementing public/private partnerships, and developing strategies to create and maintain a skilled and professional workforce by leveraging broadband to accelerate job creation in unserved and underserved communities. Action Team Leadership Chair: Robert McNary, Regional Director of the Finger Lakes Office, Empire State Development Corporation Vice Chairs: Mario Musolino, Executive Deputy Commissioner, NYS Department of Labor Howard Lowe, Director of Technical Assistance Center, SUNY Plattsburgh Goals • Work with communities to develop and implement a consumer education plan; • Define and implement workforce development system to produce a skilled IT workforce with broadband technology as its chief delivery mechanism; and • Facilitate coordination between trained broadband workers and economic development opportunities. 2008 Achievements • Conducted a statewide survey of economic development organizations, regarding broadband deployment in communities across the state to assess the perceived impact on economic development opportunities; and • Evaluated preliminary funding sources for broadband system deployment and identified specific economic development opportunities. Broadband Impact Objectives • The action team aims to deliver a blueprint or model for how broadband system deployment can benefit economic development sectors in targeted areas such as advanced manufacturing, home-based businesses, downtown revitalization, and retention of young professionals. • The action team will recommend programs and policies to accelerate broadband infrastructure build out and digital literacy programs to attract and retain technology companies and a skilled workforce. Page 56 of 64

2009 Priorities • Implement a statewide consumer education program; • Champion private-public partnership to stimulate the economy; and • Optimize stimulus funding for workforce training programs under the ARRA Act of 2009.

G OVERNMENTAL I NITIATIVES A CTION T EAM

Purpose: In partnership with the Broadband Infrastructure Action Team, the Government Initiatives Action Team focuses on optimizing existing public assets and locally-based initiatives to increase broadband penetration and use. Additionally, this team is charged with monitoring federal, state and local government initiatives, and making recommendations for future state or federal policy, legislation, or other regulatory advocacy objectives which are aligned with the NYS broadband strategy. Action Team Leadership Chair: Edward Reinfurt, Executive Director, NYS Foundation for Science, Technology and Innovation Vice Chairs: Stephen Acquario, Executive Director, NYS Association of Counties Peter Baynes, Executive Director, NY Conference of Mayors Goals • Foster interagency, intergovernmental partnerships to share public and locally-based assets to increase broadband penetration; • Engage local and regional communities to create strategies to impact policy development at the local, state and federal levels; • Provide advocacy functions with legislative leadership to adopt policies and legislation to accelerate achieving broadband goals of speed, coverage, affordability, and accessibility; • Explore national and global strategies to benchmark policies for obtaining and achieving global competitiveness through policy development and adoption; and • Develop future funding recommendations to ensure broadband strategic goals and targets can be achieved and sustained. 2008 Achievements • Identified and reported on major state and federal policies which impact broadband; and Page 57 of 64

•

Fostered communication between regional communities, municipalities and state and federal government to collaborate for mapping strategy.

Broadband Impact Objectives • The Government Initiatives Team presented major policy issues to the Council in 2008. By 2010, the team plans to have recommendations enacted with a 2015 goal to achieve a global broadband leadership position. 2009 Priorities • Collaborate with local, state and federal leaders to adopt state and federal legislation to achieve NYS broadband strategy goals; • Establish state broadband strategies to benchmark policies to achieve global competiveness; and • Advocate maximizing stimulus funding.

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BROADBAND AROUND THE GLOBE •

Internet speeds are slower and prices are higher when compared to other industrialized nations in the world – the U.S. broadband service is twice as expensive as China, eight times more expensive than South Korea, and 30 times more expensive than Japan.

•

The median U.S. download speed now is 1.97 megabits per second (Mbps) – a fraction of Japan (61 Mbps), South Korea (45 Mbps), France (17 Mbps) or Canada (7 Mbps).

•

For $30 per month, Japanese consumers can get 50 Mbps per month, a speed which is not available to residential consumers in the U.S. For the same amount of money, U.S. consumers can only get up to 4 Mbps per month.

•

Widespread adoption of broadband in the U.S. could add $500 billion to the nation’s economy and create 1 million jobs.

•

The cost of not establishing universal broadband could be $1 trillion over the next decade.

•

The U.S. remains the only major industrialized nation without an explicit national policy for promoting broadband access.

•

Canada, which has mostly rural communities, has a broadband penetration above 50%, which is twice the rate in upstate New York. Page 59 of 64

BROADBAND IN NEW YORK STATE •

Two-thirds of those living in New York City do not have affordable high-speed Internet access.6

•

Only 4.1million of the 7 million residential households (58.3%) in New York State currently subscribe to high speed Internet service. Broadband is currently available to another 40% of households or 98.3% total. However, 40% have not yet chosen to subscribe.7

•

High speed Internet use in New York State grew 55% between December 2005 and December 2006.

•

Within New York State, digital subscriber line (DSL) service is available to 78% of the state’s residential households, just below the national average of 79%.

•

DSL technology serves 1.1 million of the 5.6 million total residential and commercial broadband customers in New York State.

•

High speed cable modem broadband Internet is available to about 96% of residential households in New York State. Cable modem broadband service accounts for 2.9 million of 5.6 million or 52% of the total residential and commercial broadband customers in the state.8

•

New York is ranked 4th in median broadband Internet access speed, preceded by Rhode Island (1st), Kansas (2nd), and New Jersey (3rd).9

6

Areas like Hunts Point, Sunset Park and Red Hook do not even have affordable access beyond a dial-up connection and the State has not had a comprehensive plan to address this gap. “Universal Broadband Access” Speech by Eliot Spitzer May 15, 2006 at the Personal Democracy Forum Conference, New York, NY. 7 Source: NYS PSC and High-Speed Services for Internet Access: Status as of December 30, 2006, FCC Industry Analysis and Technology Division – Wireline Competition Bureau, October 31, 2007. Also note that FCC figures show a total of 1.5 million commercial broadband users within NYS in addition to the 4.1 million residential customers for a total of 5.6 million. Number of occupied residential New York State households (7.088 million) from U.S. Census Bureau – 2006 American Survey Data. 8 Source: NYS PSC and High-Speed Services for Internet Access: Status as of June 30, 2006, FCC Industry Analysis and Technology Division – Wireline Competition Bureau, January 2007. Also note that FCC totals for every state include other technologies such as traditional wire line, fiber, fixed wireless as well as satellite and wireless services that they do not enumerate separately on a state by state basis. However in the case of New York State satellite and mobile are significant and do account for approximately 900,000 of the state’s broadband users according to the FCC. 9 Source: Communications of America (CWA) Communications Broadband Group, “Speed Matters” (June, 2007). A report of 80,000 broadband users which ranks United State on median download speeds, U.S.A Today. NYS download median speed is 3.436 Mbps.

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U.S. DEPARTMENT OF COMMERCE PROGRAM FACT SHEET (NTIA) Federal Agency Description Funding Available Funding Ratio Key Dates/Time Limit

Information

Who Is Eligible to Apply?

Program Goals

Evaluation Criteria

Restrictions

U.S. Department of Commerce; National Telecommunications and Information Administration (NTIA) Broadband grant program to expand high-speed Internet access in unserved and underserved communities. $4.7 Billion 80% - Federal; 20% - State/Local/Private (non-Federal Funds)* • First round grant availability will be out in the April to June of 2009 • Second round will be October to December of 2009; Third round will be April to June of 2010 • All grant awards must be made by the end of fiscal year 2010 • Projects must be substantially completed within 2 years of receiving award For further information, visit NTIA’s website www.ntia.doc.gov/broadbandgrants or the USDA website www.rurdev.usda.gov/index.html • State or Political Subdivision • Non-profit Foundations, Corporations, Institutions, or Associations • Any other entity, including a broadband service or infrastructure provider the Assistant Secretary finds by rule to be in the public interest • To provide broadband service to unserved and underserved areas of the United States • To provide broadband education, awareness, training, access, equipment, and support to: schools, libraries, healthcare providers, and universities; organizations and agencies that provide support to low income; unemployed, aged, or otherwise vulnerable populations; facilities located within a state-designated economic zone • To improve the use of broadband service by public safety agencies; and • To stimulate the demand for broadband, economic growth, and job creation • • • •

Increases affordability and broadband subscribership and adoption Provides the greatest broadband speed possible Enhances service for health care delivery, education, or children If approved, will not result in unjust enrichment as a result of support for nonrecurring costs through another Federal program; and • Application comes from an economically disadvantaged small business concern Projects funded under the National Telecommunications and Information Administration (NTIA) Broadband Technology Opportunities Program may not receive funding from the Rural Broadband Grant program of USDA.

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U. S. DEPARTMENT OF AGRICULTURE PROGRAM FACT SHEET (RUS) Federal Agency

United States Department of Agriculture (USDA) Rural Utilities Services (RUS)

Funding

$2.5 Billion

Key Dates/ Time Limit

Not specified

Information

For further information, visit NTIA’s website, www.ntia.doc.gov/broadbandgrants or the USDA website www.rurdev.usda.gov/index.html

Who Is Eligible to Apply?

Public and private entities (for-profit, not-for-profit, or institutions) that provide telephone or broadband services in rural areas.

Program Goals

To provide broadband service to areas classified as being located in a rural area.

What is a Rural Area?

Evaluation Criteria

Restrictions

A rural area is defined by the USDA, as being an area of the United States that is not contained in an incorporated city or town with a population in excess of 20,000 inhabitants. • At least 75% of the area to be served is in a rural area without sufficient access to high speed broadband service to facilitate rural economic development • Project applications for broadband systems must deliver end users a choice of more than one service provider • Projects with highest proportion of rural residents that do not have access to broadband service • Projects from borrowers or former borrowers under Title II of the Rural Electrification Act of 1936. • Projects that demonstrate, if approved all proposed project elements will be fully funded • Project applications for activities that can be 100% completed if requested funds are provided • Projects that can commence promptly upon approval • Projects funded under the Rural Broadband Grant Program may not receive funding from the National Telecommunications and Information Administration (NTIA), who will administer the program. • Projects funded under the National Telecommunications and Information Administration (NTIA) Broadband Technology Opportunities Program may not receive funding from the Rural Broadband Grant program of USDA.

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GLOSSARY Access will mean the last mile of infrastructure, being the final leg of delivering connectivity from a service provider to a customer. Broadband will mean Internet access of at least one megabit per second (1 Mbps) for upload and download, as well as the infrastructure or means necessary to provide such Internet access for residential users; and at least 2 Mbps for community anchor institutions. Community Anchor Institutions will mean institutions such as libraries, schools, and churches, community centers and others that serve as public access points to the Internet. These organizations should be given priority funding to ensure that the public has guaranteed access and programs that teach digital literacy. This will help to keep the cost to residential users at affordable levels. Community Technology Centers will mean centers that provide community access to information and communications technologies, and the education necessary to meet the social, economic, educational and cultural needs of community residents. Institutionalized Constituents will mean broadband users in large populations or groups in public or privately-owned and managed living or research facilities, e.g., colleges, prisons, homes for the disabled and others. Low-Income will mean an individual family's taxable income for the preceding year that does not exceed 150 percent of the poverty level. Network will mean wired or wireless infrastructure used to connect or interconnect computer, telephony, electronic, or telecommunications systems. Rural Areas will mean counties within the state having less than 200,000 population, and the municipalities, individuals, institutions, communities, programs and such other entities or resources as are found therein. In counties of 200,000 or greater population, rural areas means towns with population densities of 150 people or less per square mile, and the villages, individuals, institutions, communities, programs and such other entities or resources as are found therein. [See NYS Executive Law §481(7).] Sustainable Adoption will mean stimulating the demand for broadband services and applications to increase the use of internet services. Online services such as e-government applications, digital literacy programs, and educational programs would fall into this category. Unserved will mean areas of the state without any broadband infrastructure in place regardless of the technology-type (wireless/DSL/Cable). Underserved will mean any area with less than 768 kbps and where less than 25 percent of areas served in particular zip codes or census tracts are not connected to the Internet.

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