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Background
Fauquier County government
estimates that approximately 60% of county residents live in
un-served or under-served areas of the community as it
relates to broadband coverage. In the next eighteen months
significant new federal funding will be available through
the American Recovery and Reinvestment Act of 2009 (ARRA) to
assist localities with the expansion of broadband services.
Federal funding opportunities include but are not limited to
$4.7 billion in grants through the U.S. Commerce
Department’s National Telecommunications and Information
Administration to develop and expand broadband communication
services in rural and under-served areas and improve access
to broadband by public safety agencies and $2.5 billion in
loans, grants and loan guarantees through the U.S.
Department of Agriculture’s Rural Utility Services Program
to provide and improve access to broadband service in
un-served and under-served areas.
It is anticipated that the
first of three rounds of grant applications for these
programs will take place between April and June of 2009. As
of this date application materials and due dates have not
been released, however it is anticipated that each program
will be highly competitive and applicants will be required
to move very quickly to make application once the
application processes have been finalized. In order to
maximize the County’s competitive position and insure
strategic alignment with the Board of Supervisors
objective(s) for broadband deployment staff is requesting
guidance from the Board with regard to key outcome
identification as well as direction with regard to the role
the Board wishes the County government to take with regard
to broadband deployment. The staff will utilize the
direction provided by the Board to develop a detailed action
plan to achieve the Board’s articulated objective(s).
Alternatives Analysis
There are a number of
alternatives the Board may wish to consider to achieve its
objective(s) for rural broadband deployment. Staff has
identified four models that represent the continuum of the
County’s potential role in broadband deployment. Review of
and selection of an alternative should reflect the County’s
objectives, desired timeline for completion, risk tolerance,
anticipated financial support and desired short and long
term governmental role.
1.
Free Market Model.
Under this model the County government would have no direct
role in broadband deployment beyond the necessary regulatory
role for approving towers/antennae under the Zoning
Ordinance. Any application for stimulus funding would be by
the private sector and decisions regarding service areas and
timelines for deployment would be made by the private
sector. With this option the County would have no direct
role in implementation or operation, and no financial or
other risk.
2.
Existing Assets Model:
Under this model the County would make its existing
resources including vertical assets and land available
through a competitive lease arrangement to one or more
private vendors who would install equipment and operate
broadband service. Any stimulus funding application would
likely be made by the private sector. The lease of existing
County resources would provide a potential revenue stream
for the County while at the same time accelerate private
sector broadband deployment. This model is most similar to
the County’s existing approach, though the recent efforts
have focused on vertical assets rather than ground leases.
As with the Free Market Model decisions regarding areas of
deployment and timeline would be made primarily by the
private sector, however the County would have the ability to
influence these decisions through the competitive lease
process.
3.
Expanded Assets Model:
Under this model the County would use a propagation study,
as completed by a firm procured through a competitive
negotiation process, to determine where additional assets
such as towers would need to be constructed to achieve the
County’s coverage objectives and construct the improvements
utilizing ARRA funds. These new assets would be
competitively leased to one or more private sector providers
who would utilize their equipment to provide broadband
services in the coverage area. The County would be the
applicant for stimulus funding for the infrastructure it
would construct and would maintain ownership of the capital
assets. The County would use the lease revenue to offset all
or a portion of its grant match requirements and/or loan
obligations as well as ongoing maintenance requirements.
Under this model the County’s potential financial
obligations increase but so too does the County’s ability to
speed deployment in areas where exiting capital
infrastructure does not exist.
4.
Full System Ownership Model:
Under this model the County would establish a Wireless
Service Authority for the un-served and under-served areas
of the county. Utilizing the authority provided under The
Virginia Wireless Authority Act the County would have wide
discretion to own and operate a system including the ability
to partner with the private sector for deployment, operation
and maintenance. Attached please find a document entitled
“Wireless Service Authorities and the Virginia Wireless
Authority Act” prepared by Jeffrey Gore of Hefty and Wiley
which provides detailed information regarding the Act, as
well as a comparison of the powers of wireless service
authorities, economic developments authorities, local
governing bodies and water/waste authorities.
The establishment of an Authority, which can be comprised of
the members of the Board of Supervisors, is the most
flexible means available to Virginia localities for
broadband deployment. As this model might be applied in
Fauquier County, the County could team with a private sector
partner who would provide the propagation maps, engineering,
grant match and specify and install the network equipment in
exchange for a long term operating agreement with the
Authority. Under this model the Authority would be the
stimulus grant applicant and would continue to maintain the
ownership of the network. Should the Board chose option 3 or
4 the Authority would be in the best position to actively
pursue and implement the Board’s overall objective(s) for
community broadband deployment as the Act provides the
Authority with powers such as the ability to own and operate
a broadband network and use of state-controlled lands that
are not available to local governments generally. The
principle cautions include the assumption of a new proactive
government role in what had up to now been a private sector
service, impacts on current staff and the customer service
expectations of citizens served through the Authority-owned
network even if it is operated by a private provider.
Once the objective(s)
articulated by the Board is established and direction is
provided regarding the most appropriate model for County
government involvement in broadband deployment staff will
develop and present for the Board’s consideration and
approval an action plan to achieve the Board’s objective(s).
As part of this process staff also anticipates that a staff
level working group of Planning, Information Technology,
Economic Development staff and one or more private sector
broadband providers currently operating in the County be
established to review the County Zoning Ordinance pertaining
to infrastructure approval for broadband deployment.
Additional items of
consideration as the County moves forward to achieve the
Board of Supervisors objectives include:
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Any application the
County may make for stimulus funding will require at a
minimum a cost study by coverage area, engineering plan
and build out schedule. Unless provided by a vendor as
part of a procurement process, the County will need to
allocate time and resources to complete these
requirements.
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Generally speaking the
greater the level of County involvement the larger the
area of deployment and more aggressive the timeline for
completion; however with a greater level of involvement
the County also will have greater financial and staff
support requirements.
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The County may wish to
consider enhancing the competitiveness of future grant
applications through a regional partnership with one or
more of Fauquier’s incorporated towns.
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The County should
consider whether future procurement or leasing efforts
associated with options 2-4 should focus on a single
private sector partner or one or more sub-area partners.
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Long term success of any
public-private partnership, if options 3 or 4 are
chosen, depends upon the selection of private sector
partner(s) with the demonstrated ability to handle
customer service support, system installation and
maintenance.
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