National Broadband Network for Public Safety in Rural America. For Technical Support. How to Submit Your Questions Online

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1 National Broadband Network for Public Safety in Rural America September 20, :00 PM (Eastern) For Technical Support If you re listening over the phone, please press *0. If you re listening through your computer speakers, 2 How to Submit Your Questions Online Question: Where can I get more information? Response: Go to for more details. Step 1: Type in your question. Step 2: Click on the Send button. 3

2 To Download the Program Files 1. Click here in the Links box to open the presentation slides or handout. 2. Click on an icon to print or save the file. 4 Today s Experts Martha Duggan, Sr. Principal, Regulatory Affairs National Rural Electric Cooperative Association Martha.duggan@nreca.coop Marty Stern, Partner, K&L Gates marty.stern@klgates.com Kathy Nelson, Principal Telecommunications Engineer Great River Energy knelson@grenergy.com Brett Haan, Principle, Strategy & Operations Deloitte Consulting bhaan@deloitte.com FirstNet Overview: Opportunities for Rural Electric Co-Ops Marty Stern Partner, K&L Gates marty.stern@klgates.com

3 Middle Class Tax Relief Act and Job Creation Act of 2012 Signed into law 2/22/12 Beyond extension of payroll tax deduction, Title VI on public safety and broadcast spectrum (referred to as the Spectrum Act ), includes some of the most significant spectrum provisions in last 15 years Broadcast/Incentive Auction Provisions Repacks broadcast spectrum, reverse auction for broadcasters willing to take buyout, forward auction of what s freed up for mobile broadband Hugely complex, unclear what broadcasters will show, timing, amount of spectrum to be auctioned for wireless, and funding to be raised (Estimates $24B+, but uncertain and depends on willingness of broadcasters to take buyout) Portion of proceeds to fund new nationwide public safety broadband network. Principally: $7 Billion for public safety mobile broadband deployment $135 Million State & Local Implementation Grant Program Public Safety Provisions Establishes FirstNet, a new independent authority within NTIA, to deploy/operate/govern the new $7 Billion nationwide public safety broadband network Allocates 20 MHz of spectrum to FirstNet in 700 MHz Band for new broadband network Provides sweeping authorizations for public-private partnerships, spectrum leasing/network capacity leasing arrangements New network will be some combination of new build + leverage existing local facilities through various arrangements with third parties Opportunities to leverage existing facilities and piggyback on rollout of new broadband network through deals with FirstNet Particularly attractive for entities like electric co-ops that have history of working with public safety (e.g., disaster restoration) But significant implementation questions remain (FirstNet provisions begin at Sec of 2012 Tax Relief Act - p. 51 of pdf) FirstNet Overview FirstNet required to use interoperability standards adopted by FCC based on recommendations from an FCC Interoperability Board. Interoperability Board s Final Report was transmitted by FCC to FirstNet in June Includes minimum technical requirements in a number of areas to ensure a nationwide level of interoperability; FirstNet governed by 15-member Board appointed in August Secretary of DHS, Attorney General, OMB Director 12 members to be appointed by Secretary of Commerce (3 local/state/tribal, 3 public safety, 1 technical, 1 financial, 3 any of above. Board includes Tim Bryan, CEO, NRTC Develop deployment plans and RFPs for all aspects of network Submit to state governors, who can approve or opt-out Upon completion of process, FirstNet deployed

4 FirstNet Duties and Obligations Determine uses/access to network Develop RFPs for deployment and operation Promote competition in the equipment market (Open standards, Backward compatible) Leverage existing commercial or other infrastructure Receive payment for use of spectrum and network infrastructure owned/operated by FirstNet Consult with States on State & Local Planning Roaming agreements Network infrastructure and device criteria Retain advisors and consultants to assist FirstNet Overview Opportunities for Co-ops In deploying and operating nationwide network, FirstNet: Must require substantial rural coverage milestones at each phase of construction and deployment (Sec. 6206(b)(3)) Must leverage existing infrastructure by entering into agreements to maximum extent economically desirable to utilize existing communications infrastructure (Sec. 6206(c)(3)) In addition to public safety users, Spectrum Act allows FirstNet to enter into arrangements with secondary users : For access to or use of the network for a user or subscription fee Leasing arrangements to allow access to capacity on a secondary basis or for access to infrastructure Taken together, provides significant opportunities for co-ops to leverage existing relationships with public safety in connection with disaster relief and regional restoration activities: to develop arrangements for infrastructure sharing Use by co-ops of FirstNet wireless broadband capacity Utility/Public Safety Partnerships 700 MHz LTE PSBN Kathleen Nelson, P.E. Principal Telecommunications Engineer Great River Energy

5 Great River Energy Overview Great River Energy and its 28 members 2 nd largest utility in MN 28 member cooperatives 1.7 million people 890 employees (MN and ND) 3,000+ MW of owned generation 10 power plants 2 under construction Long-term contracts wind-313 MW and Genoa MW 4,500 miles of transmission lines Great River Energy Communications Systems GRE Supervisory Control and Data Acquisition (SCADA) Private Land Mobile Radio System for GRE and 14 of our member distribution cooperatives Demand Side Management/Load Control Backhaul of Advanced Metering Infrastructure (AMI) and Automated Meter Reading (AMR) for distribution cooperatives Remote network access for field technicians Synchrophasers for wide area situational awareness Distribution cooperatives Private Land Mobile Radio Systems AMI/AMR to commercial/industrial and residential customers Distribution Automation 2.4 GHz Trunked Mobile Radio 450 MHz Pole top AMI Collector AMI Meter Fiber 700 MHz A band PLC AMI Meter Substation Microwave Communication Site 700 MHz A band Recloser/Cap Bank/Switch 900 MHz unlicensed 700 Fiber MHz A band Communication Site Substation Control Center Substation

6 Public Safety and Utility Shared Systems Utilities have similar communications needs as public safety users Highly reliable networks Generator backup Ruggedized Radios Coverage in rural environments and off major roads/highways Public safety and utilities share voice radio systems in several areas: State of Nebraska State of Nevada City of Nashville Why Share? Why would utilities want to partner with public safety? Public Safety has spectrum. Utilities will not be given dedicated spectrum May be utilities only access to broadband spectrum Why would public safety want to partner with utilities? Utilities have telecommunications infrastructure-towers, generators, buildings, fiber, utility poles, and right of way Public safety needs more users to make the network cost effective Utilities have rural coverage needs that public safety also needs to cover. Commercial providers typically do not cover rural areas well Utilities have highly trained technical personnel typically dispersed throughout areas and on call 24x7 Issues Political Governance Access and access models Contacts Utilities being allowed a seat at the table What does secondary user mean to utilities? Commercial providers do not want utilities to be included Technical Utility requirements being included Utility infrastructure being taken into account in design Bandwidth allocation vs. QoS Technical Sharing criteria/capabilities planning Review/assist with site recommendations Backhaul development assistance Interoperability requirement

7 Issues (cont'd) Business Tracking of deployment metrics - (who, what, where) Identify and publish possible partnership opportunities, (utility collocation friendly s, broadband providers, tower owners) Compilation of infrastructure contract templates and case studies for the UTC website Working with NTIA on infrastructure database Utilities assets being able to offset user fees State of Minnesota GRE and State of Minnesota have similar LMR systems and an established relationship although no current partnership State of MN recently completed a Broadband Requirements Study. Working on a phase 2 study State of MN created a Interoperable Data Committee that I am on Summary Utilities and public safety can share networks for the benefit of both industries Utilities within states or regions need to work together as it will require many users to make the network affordable. Not all utilities are following this issue closely Conversations between public safety, utilities, and other critical infrastructure need to start now

8 What can you do? Get involved now Requirements are being written. If we want to have our requirements included, have to be talking now. Time is of the essence. Find public safety contact for your area or state and call them Challenging to find out who to talk with. Start local and move up if needed. Talk with other utilities and critical infrastructure It will take many entities working together to make the network affordable Public Safety Broadband Network Implications and Opportunities Brett Haan Principal, Strategy & Operations Deloitte Consulting LLP September 2012 Agenda State Perspective Partnership Potential Motivation for Utility Engagement Q & A

9 Recent legislation partially funds construction of a nationwide mobile Public Safety Broadband Network (PSBN) Nationwide and interoperable Uses advanced Long Term Evolution (LTE) technology The Network Offers public safety grade reliability and security Is expected to cover a significant portion of the U.S. population Can support a wide range of mobile broadband applications Has the capacity to support other eligible user groups beyond public safety States should adopt new applications to improve response and coordination during emergency situations PSBN presents a major new technology asset for States to manage and utilize The States States should represent varying constituencies at the State, local, and tribal levels PSBN development relies on understanding existing technology assets and resources, including those owned and operated by utilities States should understand technical and budgetary issues associated with the network Source: Deloitte analysis of Title VI Public Safety Communications and Electromagnetic Spectrum Auctions of The Middle Class Tax Relief and Job Creation Act of 2012 PSBN will impact States through network development and operation Fiscal Legislation will present States with an unfunded mandate, creating a number of funding and revenue opportunities/challenges Procedural Legislative action at the State-level will be required to address use of State assets, procurement issues, and private sector partnerships Philosophical States may feel they are better served by running their own mobile broadband network rather than subscribing to a Federal system Availability and use of Federal funds Cost / benefit of new mobile broadband services compared with commercial wireless carrier services Potential for private sector funding for portions of network buildout Private sector participation in network operations, lowering ongoing costs Overall budget impact (net + or -) Sustaining business model State regulations may prohibit the use of State assets (e.g., tower sites) for new purposes FirstNet needs to coordinate with the States to create a legal framework that supports various State regulations Private investment in building public networks and creating services may involve legislative additions and changes Private sector usage and operation of public networks and services may also require legislative additions and changes States may prefer to design and procure their own PSBN equipment to better meet unique State and local requirements States may also prefer to maintain operational control of their portion of the network States may want to deploy services through private partnerships that are unavailable through a national platform Source: Based on Chris McIntosh (Virginia SWIC) commentary delivered during PSBN Panel Discussion 6/29/12 NGA Conference, Leesburg, VA The legislation identifies responsibilities for States, and also presents opportunities State Responsibilities Organize requirements for a diverse set of public safety and non-public safety entities Create a governance structure to interact with FirstNet, as well as Local and Tribal Jurisdictions (identify single point of contact) Submit grant application to receive Federal planning funds Conduct State-wide assessment (requirements and inventory) and develop State PSBN Plan Identify State assets (e.g. tower sites, backhaul) which could be incorporated into PSBN Determine participation in nationwide PSBN as proposed by FirstNet State Opportunities Define State-specific requirements of an interoperable mobile broadband network designed to meet public safety requirements Provides Federal funding for planning and construction activities Consider additional funding sources and tax planning including private investment Expand access and coverage to mobile broadband through newly constructed PSBN Enable States to leverage nationwide interoperability through newly constructed PSBN Offer services and applications that can take advantage of broadband speeds on a wireless network Source: Deloitte analysis of Title VI Public Safety Communications and Electromagnetic Spectrum Auctions of The Middle Class Tax Relief and Job Creation Act of 2012

10 However, it also creates a number of tactical challenges for States tes Selected Challenges Planning What about related in-flight projects and services? How easy/difficult will it be to gather the requirements? How easy/difficult will it be to gather the inventory? Governance Which group should lead PSBN planning efforts across State, local, county, and tribal entities? Who are the stakeholders(e.g., public safety, public service, higher education, etc.), and are their interests and priorities aligned? What sources of funding will likely be available to think this through? Funding What Federal resources are available to help think this through? What opportunities exist for States to alleviate costs? Are there viable private investment opportunities (e.g., utilities, private equity)? What services are being consumed today? Services What future services should be offered? What is the expected usage penetration? PSBN effectiveness in each State will require close collaboration across State stakeholders State Stakeholders Seeks Federal grant for planning State s portion of PSBN Will review Federal plans for build out and determine State participation Governor s Office Budget Director State Legislative Branch Public Safety / 1 st Responders/ Emergency Management State Based National Security Services (e.g., National Guard, DHS) State CIO Local, Municipal and Tribal Entities Public Service and Utilities Entities Private Companies States will have opportunities to partner with local, regional and national entities Key Players Legislative Provisions Impacts Wireless Providers PSBN will have the capability to roam onto commercial networks and gain priority access with commercial agreement FirstNet should attempt to partner with commercial carriers to extend rural coverage PSBN will be compatible with existing commercial broadband networks Networks may require hardening to ensure maximum reliability to allow PS roaming Wireless priority service will need to be defined for PS Partnerships with carriers to leverage the expertise in network construction and operations (B/OSS) LTE Hardware and Software Manufacturers PSBN will be built on technical requirements based on commercially available open standards for LTE Interoperability and equipment compatibility are key requirements US carriers have chosen not to make LTE not interoperable may create issues for PS Backward compatibility with 3G will be important Device Manufacturers FirstNet will develop a list of certified devices and components that meet public safety requirements PSBN will leverage existing commercially available devices for economies of scale and cost savings Development of new devices that can be used by both commercial and PS will require collaboration amongst device manufacturers, application vendors and carriers Telco Infrastructure Companies (e.g., public utilities, tower companies) PSBN will utilize existing towers, backhaul and transport infrastructure Backhaul could be shared between PS, commercial; need to define partnering agreements Use of FirstNet funds to supplement existing infrastructure Source: Deloitte analysis of Title VI Public Safety Communications and Electromagnetic Spectrum Auctions of The Middle Class Tax Relief and Job Creation Act of 2012

11 Utilities should engage States to build State and local services through PSBN Relevant Utility Focal Points Leverage Existing Infrastructure PSBN will likely rely on existing infrastructure, including utilities and rights of way, creating a revenue opportunity for utilities Utilities can work with States to develop Public Private Partnerships (PPP) and sustaining business models Utilities may be able to use State infrastructure to reduce service delivery costs Extend Broadband Services PSBN has the potential to serve as the backbone for extending broadband services to rural areas in: Education Health care Mobility Underserved Utilities can work with States to develop local and statewide broadband based services faster than a federal entity Drive Economic Development This legislation can provide utilities with a critical IT resource and information platform By working cooperatively with States, utilities can generate meaningful job creation Broadband based service expansion will drive economic development and utilities should share in the growth Source: Deloitte analysis of Title VI Public Safety Communications and Electromagnetic Spectrum Auctions of The Middle Class Tax Relief and Job Creation Act of 2012 PSBN can generate many value-added services / apps for impacted stakeholders Wireless Meter Reading Sample Services and Applications that can result from PSBN Emergency Call Boxes License Plate Recognition Handheld Biometrics Mobile Data Traffic Signal Connectivity Remote Offices Mobile Medical Services Video Auto Vehicle Location Sensor Monitoring Smart Grid Services and applications will be created based on user personas and needs Utilities should work with State leaders as they engage in the process State Engagement Framework Establish governance - Appoint a committee to convey ideas from impacted stakeholders to the governor s office Prepare for grant application - Create an information collection strategy and analyze stakeholder requirements Incorporate stakeholder requirements - Design a desired network to accomplish the State s goals and also meet the needs for public safety users and other State and local entities Evaluate PSBN strategy - Determine whether the State will join a regional network or build for State-only use 4 5 Influence FirstNet plans - Use an NTIA planning grant to develop a blueprint for its portion of the PSBN and present it to FirstNet with the goal of influencing FirstNet s network plans 6 Assess build-out options - Consider fiscal, procedural, and philosophical factors for the opt-in / opt-out decision

12 Questions? Resources Brett Haan Principal Strategy & Operations Deloitte Consulting LLP Title VI Legislation Title VI NTIA Request for Information Technical Advisory Board Report Kristen Miller Principal Technology Deloitte Consulting LLP NASCIO Website Bryan Cloar Senior Manager Strategy & Operations Deloitte Consulting LLP This presentation contains general information only and Deloitte is not, by means of this presentation, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This presentation is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte shall not be responsible for any loss sustained by any person who relies on this presentation As used in this document, "Deloitte" means Deloitte Consulting LLP, a subsidiary of Deloitte LLP. Please see for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.. Copyright 2012 Deloitte Development LLC, All rights reserved.

13 How to Submit Your Questions Online Question: Where can I get more information? Response: Go to for more details. Step 1: Type in your question. Step 2: Click on the Send button. 37 Your Feedback is Important! Click here in the Links box to open the online evaluation. Thank You! 38 Thank you!