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State Efforts (Appendix from LinkMichigan)

Colorado
Colorado's Multiuse Network (MNT) initiative is designed to pool the purchasing power of the state's telecommunications contracts for the betterment of statewide infrastructure. As part of this effort, US West has been awarded a $37 million contract that will create a high-speed, fiber-optic network connecting all state offices. The Colorado legislature also passed a "Beanpole Bill" to extend the geographical reach of the MNT initiative to the local level to include all public facilities (schools, colleges, libraries, and health care, municipal and county facilities), not just state agency offices. The bill provides $4.6 million for matching funds to communities as an incentive to pool their demand. Each self-defined community will issue its own RFP to private providers to connect these facilities to the nearest point of presence of the MNT. Communities then will apply to the state for funding to cover part of the overall cost. Local match will vary depending on need.

AT&T COMPLETES CABLE MODEM "OPEN-ACCESS" TRIAL

AT&T Broadband said it had completed a six-month trial in Boulder, Colo., that allowed multiple Internet service providers (ISPs) to offer high-speed access over AT&T's cable modem platform. The company said it was "on schedule" to offer consumers their choice of cable modem ISPs by mid-2002.

AT&T Broadband said more than 300 end-users and four ISPs participated in the trial, which cost about $20 million. The Boulder trial will be extended for two months in a limited area to continue evaluating the "service agent" software. Customers use that software to register for and connect to an ISP.

AT&T also plans to continue testing billing and customer-care features before launching a limited commercial program in Massachusetts that will let customers choose their cable modem ISP. That launch is slated for later this year.

Iowa
Several years ago, the State of Iowa created the Iowa Communications Network (ICN). ICN is a statewide, state administered, fiber optics network. The capacity of the Network enables hospitals, state and federal governments, public defense armories, libraries, schools, and higher education authorized users to communicate via high quality, fullmotion video, high-speed Internet connections, and telephones. The ICN is a statewide network with more than 3,000 miles of fiber optic cable reaching into all 99 counties, putting every citizen within 15 miles of a video site.

In order to construct the network, Iowa allowed vendors to submit proposals to either construct the fiber optic cable lines or lease capacity on existing fiber. Only two bids were received and both were for construction of the fiber optic cable, which meant the state had to become the owner and administrator of the network. In recent years, the state has unsuccessfully tried to sell the network.

Minnesota
Connecting Minnesota is a statewide fiber optic network project. The network will consist of 2,000 miles of fiber optic cable that will be laid in the interstate highway right of-ways (land adjacent to the highway). The network will reach within ten miles of about 80% of the state's population, including rural areas and small towns throughout Greater Minnesota. Connecting Minnesota's fiber optic network will consist of a fiber optic "backbone" that consists of northern and southern Minnesota loops connected to a central network in the Minneapolis/St. Paul metro area.

The network project is being completely financed by ICS/UCN, a Denver-based utility developer. ICS/UCN, with support from Boston-based LMAC Construction, will finance, build, maintain, and manage the network for both public and private sector use. ICS/UCN was selected in a competitive process from respondents to a Minnesota Department of Transportation "Request for Proposal." The estimated cost of the project is $195 million.

In exchange for access to the right-of-way, ICS/UCN will provide telecommunications capacity to meet the Minnesota Department of Transportation's need to connect district offices and wayside rest areas, to support new technologies used to manage road surfaces, and protect the public. ICS/UCN also will provide 20% of the network capacity for public use, which includes K-12 schools, universities, libraries, and state and local governments. The remaining 80% will be leased to the private sector, such as longdistance, Internet, and other telecommunications providers. Note: This past month ICS/UCN announced its withdrawal from this project, citing financial difficulties resulting from ongoing legal battles with U.S. West. Even though ICS/UCN had been winning the court challenges posed by U.S. West, the company fell victim to retracting capital markets. The state has indicated they will seek another contractor to takeover this initiative.

Montana
In 2000, the State of Montana instituted a tax credit program to accelerate the growth of a high-speed telecommunications infrastructure throughout the state. Administered by the Department of Commerce, one or more providers may receive the credit. In any one year, the maximum amount of the credit available to all providers is $2,000,000. Eligible companies may claim no more than 20% of their investments as credits. The credit is applied against the telecommunications excise tax of 3.75% on the sales price of retail telecommunications services.

North Dakota
North Dakota will build a statewide, broadband telecommunications network connecting 552 locations in 194 cities throughout the state. The state's broadband infrastructure project has three primary goals: 1) to deploy an integrated network to meet current and future needs for government and education; 2) to reduce telecommunications rates by aggregating public demand and negotiating a lower price for bulk service; and 3) to promote economic development by making broadband services available in every county and in communities throughout the state.

The state awarded three separate contracts to complete its new network. Dakota Carrier Network (DCN) was selected to provide the transport services, which essentially involves building and managing the network. Sprint was awarded the contract to provide Internet services to all government and education entities. Corporate Technologies of Fargo won the bid for customer premises equipment, which involves routers and other equipment to connect endpoints to the broadband network. The State of North Dakota believes once the network is complete, it will provide North Dakota residents the greatest universal access to high-speed telecommunications services of any rural state in the nation.

Virginia
Advanced Communications Assistance Fund- Virginia has created a program called the Advanced Communications Assistance Fund, which provides up to $50,000 per award to communities working to improve local telecommunications infrastructure. This is a relatively new program to boost connectivity in smaller communities.

VirginiaLink- Through VirginiaLink, contracted service providers will offer businesses throughout Virginia "one-stop-shopping" access to unbundled, high-capacity telecommunications services. Businesses access the communications services by joining the VirginiaLink Consortium buyers' group. The VirginiaLink Consortium is administered by the Virginia's Center for Innovative Technology (CIT), a state-charted, nonprofit organization dedicated to the growth of technology and business in Virginia. In order to acquire the discount services obtained by VirginiaLink, a consumer must purchase a one-year membership, which will cost end users $100 per business location, with a maximum fee per firm of $1,000. Service resellers and Internet service providers (ISPs) also will be able to join for a $500 fee per location, with a maximum cost of $2,500.

Washington
"Washington Light Lanes" is a public-private partnership, which will install a new $100 million fiber optic backbone network across the State of Washington. The project is a joint effort of the Washington State Department of Transportation (WSDOT) and UCN of Denver, Colorado. Light Lanes will connect the intelligent transportation systems (ITS) on state highways from cities across the state.

The project starts with construction of a "backbone" system that will have more than 600 fibers in some locations. That backbone will consist of a series of small conduits placed along the highway with fiber bundles inside the conduits. In addition to that core backbone, WSDOT is to receive 48 fibers dedicated for highway uses. The remaining capacity will be leased to private sector telecommunications service providers.

This project will be constructed by ICS/UCN, the Denver-based utility developer that also is constructing the Connecting Minnesota Network building and managing the network. Sprint was awarded the contract to provide Internet services to all government and education entities. Corporate Technologies of Fargo won the bid for customer premises equipment, which involves routers and other equipment to connect endpoints to the broadband network. The State of North Dakota believes once the network is complete, it will provide North Dakota residents the greatest universal access to high-speed telecommunications services of any rural state in the nation.

Ashland, Oregon
The City of Ashland, Oregon, population 19,000, has invested $5 million to build its own fiber optic telecommunications network. The Ashland Fiber Network was conceived as a method for the city's electric utility to begin planning for and dealing with upcoming electric deregulation. The Ashland Fiber Network (AFN) will provide Ashland businesses and residents with large-bandwidth data service, high-speed Internet service, and cable television service.

AFN Data, the large bandwidth data service, has been available to Ashland businesses since early 1999. Within the first year, 20 businesses had signed up as customers, twice number the city had projected. AFN also is available for residential use. Residents can have access to cable television and high-speed cable modem Internet use.The estimated $5 million for implementing the Ashland Fiber Network is from an interdepartment loan from electric utility revenues. This covered the initial costs for the project. Additional costs are being financed through revenue bonds and paid for by theusers of AFN.

Marietta, Ohio
Marietta is home to a non-profit corporation, Sequelle Inc., formed to develop low-cost wireless Internet broadband service for its residents as well as those other towns along the Ohio River and residents in West Virginia. The Washington County Community Improvement Corp., a 37-year-old nonprofit economic development corporation, sponsors Sequelle.

Sequelle will offer broadband fixed wireless "last mile" access to the Internet and other high-speed applications. While other telecommunications offerings can provide highspeed connections or broadband capacity, Sequelle can deploy its access solutions in areas that are inaccessible to conventional wire line connections. Patented technology also will enable Sequelle to achieve more efficient use of the radio spectrum employed. The funding for Sequelle, estimated at $3 million, comes from a combination of state and federal funds, with the majority from the Ohio Department of Development.

Norfolk, Nebraska
In 1998, through the use of grants and revenue bonds, Norfolk pushed to make affordable high-speed services accessible to all businesses and residents. Working with the local hospital, banks, and other telecommunications users to combine, or aggregate, local demand, the city convinced US West to upgrade the switch for high-speed ADSL technology at a reasonable price. (ADSL is an acronym for Asymmetric Digital Subscriber Line). ADSL converts existing copper phone lines to three information channels, including a high-speed data channel. Depending upon the particular hardware configuration, ADSL can offer speeds of up to 7 megabits per second.

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