Legislature(2017 - 2018)CAPITOL 106

03/24/2017 08:00 AM House EDUCATION

Note: the audio and video recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.

Download Mp3. <- Right click and save file as

Audio Topic
08:05:34 AM Start
08:06:50 AM Presentation: Broadband
10:11:25 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
Broadband Presentation
-- Testimony <Invitation Only> --
**Streamed live on AKL.tv**
                    ALASKA STATE LEGISLATURE                                                                                  
               HOUSE EDUCATION STANDING COMMITTEE                                                                             
                         March 24, 2017                                                                                         
                           8:05 a.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Harriet Drummond, Chair                                                                                          
Representative Justin Parish, Vice Chair                                                                                        
Representative Zach Fansler                                                                                                     
Representative Ivy Spohnholz                                                                                                    
Representative Jennifer Johnston                                                                                                
Representative Chuck Kopp                                                                                                       
Representative David Talerico                                                                                                   
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Lora Reinbold (alternate)                                                                                        
Representative Geran Tarr (alternate)                                                                                           
                                                                                                                                
OTHER LEGISLATORS PRESENT                                                                                                     
                                                                                                                                
Representative Mike Chenault                                                                                                    
Representative Dean Westlake                                                                                                    
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
PRESENTATION:  BROADBAND                                                                                                        
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
TINA PIDGEON, General Counsel                                                                                                   
General Communication Inc.                                                                                                      
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Responded to questions brought forward from                                                              
a previous presentation to the committee on broadband usage in                                                                  
Alaska schools held on 2/15/17.                                                                                                 
                                                                                                                                
WILL JOHNSON, Representative                                                                                                    
Alaska Satellite Internet                                                                                                       
Fairbanks, Alaska                                                                                                               
POSITION   STATEMENT:     Provided   a  PowerPoint   presentation                                                             
entitled, "Brief Summary of Satellite Internet," [undated].                                                                     
                                                                                                                                
KRISTINA WOOLSTON, Vice President for External Relations                                                                        
Quintillion                                                                                                                     
Anchorage, Alaska                                                                                                               
POSITION   STATEMENT:     Provided   a  PowerPoint   presentation                                                             
entitled, "Quintillion Subsea Cable System," dated 3/24/17.                                                                     
                                                                                                                                
PAUL BARTOS, Principal                                                                                                          
Star of the Northwest                                                                                                           
Northwest Arctic Borough School District                                                                                        
Kotzebue, Alaska                                                                                                                
POSITION   STATEMENT:     Provided   a  PowerPoint   presentation                                                             
entitled, "Star of the Northwest Magnet School," dated 3/24/17.                                                                 
                                                                                                                                
BRIAN ASHTON, HughesNet                                                                                                         
Wrangell, Alaska                                                                                                                
POSITION STATEMENT:  Testified and  answered questions during the                                                             
presentation on broadband.                                                                                                      
                                                                                                                                
MIKE COOK, Executive Vice President, Sales and Marketing                                                                        
Hughes Network Systems                                                                                                          
Germantown, Maryland                                                                                                            
POSITION STATEMENT:  Testified and  answered questions during the                                                           
presentation on broadband.                                                                                                      
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
8:05:34 AM                                                                                                                    
                                                                                                                                
CHAIR  HARRIET  DRUMMOND  called  the  House  Education  Standing                                                             
Committee  meeting  to  order  at   8:05  a.m.    Representatives                                                               
Drummond,  Parish,   Spohnholz,  Fansler,  Johnston,   Kopp,  and                                                               
Talerico were present at the call to order.                                                                                     
                                                                                                                                
^PRESENTATION:  BROADBAND                                                                                                       
                    PRESENTATION:  BROADBAND                                                                                
                                                                                                                              
8:06:50 AM                                                                                                                    
                                                                                                                                
CHAIR DRUMMOND  announced that the  only order of  business would                                                               
be  a series  of  presentations on  broadband  access in  Alaska,                                                               
beginning  with  further  discussion   related  to  the  previous                                                               
presentation [at the meeting on 2/15/17].                                                                                       
                                                                                                                                
8:07:47 AM                                                                                                                    
                                                                                                                                
TINA PIDGEON, General Counsel,  General Communication Inc. (GCI),                                                               
offered to answer questions.                                                                                                    
                                                                                                                                
8:09:00 AM                                                                                                                    
                                                                                                                                
The committee took a brief at-ease.                                                                                             
                                                                                                                                
8:09:06 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   KOPP   recalled   the   Federal   Communications                                                               
Commission (FCC)  [Connect America  Fund] Alaska Plan  included a                                                               
financial commitment  to GCI of  about $60 million per  year, and                                                               
asked  where in  rural  Alaska this  investment  in fiber  optics                                                               
would be directed.                                                                                                              
                                                                                                                                
MS. PIDGEON  said the funding  under the umbrella of  (High Cost)                                                               
Universal  Service  has  been supporting  wireline  services  and                                                               
wireless   services  for   many  years.     In   2011,  the   FCC                                                               
administration  process  changed  to  focus on  the  support  and                                                               
advancement of broadband  services.  Ms. Pidgeon  pointed out the                                                               
network is the  network whether voice or broadband,  and there is                                                               
overlap between the  services that has been  supported by funding                                                               
in the past; however, when  FCC focused the funding initiative on                                                               
broadband, it  created risk to  Alaska providers and  changed the                                                               
funding stream available  to GCI.  As a result,  the money in the                                                               
Alaska Plan  that was historically  being provided to  Alaska was                                                               
"frozen."  Currently, providers must  focus how funds are used in                                                               
rural  Alaska,  without  removing   other  service,  while  still                                                               
expanding into others.  She  said FCC has established obligations                                                               
providers must  meet to  keep their  funding and  avoid penalties                                                               
under the  Alaska Plan; for GCI,  most of the funding  is used to                                                               
support  the  wireless  services  in  rural  Alaska,  whether  by                                                               
microwave, fiber,  or satellite.  Further,  the initial five-year                                                               
commitment  requires GCI  to expand  present [2  generation (2G)]                                                               
services  to  either 3G  or  [Long-Term  Evolution (LTE)],  which                                                               
would improve service levels for 20  percent to 30 percent of the                                                               
population.     Ms.  Pigeon  stressed  the   commitment  requires                                                               
maintaining  the  present  level   of  service  while  increasing                                                               
capabilities  for a  percentage  of the  population.   Compliance                                                               
also  includes  five-year  planning  for  projects  in  the  most                                                               
economical way.                                                                                                                 
                                                                                                                                
8:15:51 AM                                                                                                                    
                                                                                                                                
CHAIR DRUMMOND  surmised the original network  was established to                                                               
provide telephonic services.                                                                                                    
                                                                                                                                
MS. PIDGEON  concurred, and added  the programs  were established                                                               
decades  ago  and formalized  by  the  Telecommunications Act  of                                                               
1996.   At  that time,  the intent  was to  support networks  and                                                               
voice telephony services, but since  the advancement of networks,                                                               
the Universal  Service program has  changed to ensure  the system                                                               
allows consumers to  benefit from new broadband  services.  Under                                                               
the current  plan formulations, there are  specific goals related                                                               
to broadband that are tied to the funding.                                                                                      
                                                                                                                                
CHAIR  DRUMMOND asked,  "How is  the network  the network?"  when                                                               
phonelines  have different  capabilities  than broadband,  cable,                                                               
and fiber.                                                                                                                      
                                                                                                                                
MS.  PIDGEON   explained  in  many  ways   the  same  fundamental                                                               
infrastructure  is used  to  carry a  broadband  service or  data                                                               
bits; in  fact, when transitioning  from voice to  broadband, the                                                               
capability of an existing network is not removed, but improved.                                                                 
                                                                                                                                
CHAIR  DRUMMOND  observed  once  the network  is  extended  to  a                                                               
community then it can be improved with new technology.                                                                          
                                                                                                                                
MS. PIDGEON agreed.                                                                                                             
                                                                                                                                
CHAIR DRUMMOND asked for further  information on the funding that                                                               
was frozen.                                                                                                                     
                                                                                                                                
MS. PIDGEON  said categories of  funding have been  [withheld] in                                                               
response to a  carrier's costs or level of  service; however, the                                                               
funding remains  dedicated to the  Alaska network.   For example,                                                               
funding may be subject to  nationwide competition, and in head to                                                               
head  competition  with  other states,  Alaska  might  have  lost                                                               
funding, thus  FCC "froze the  funding in place"  and established                                                               
commitments for  carriers to  reach, while  providing a  level of                                                               
support so  that carriers  can plan to  make advances  in service                                                               
over a certain period of time.                                                                                                  
                                                                                                                                
CHAIR  DRUMMOND  concluded instead  of  competing  with Lower  48                                                               
providers,  FCC  made an  effort  to  treat  Alaska as  a  unique                                                               
market.                                                                                                                         
                                                                                                                                
MS.  PIDGEON  said  correct.     In  further  response  to  Chair                                                               
Drummond, she  said she would provide  to the committee a  set of                                                               
firm  commitments  between  GCI  and FCC  about  improvements  in                                                               
service,  both in  network  and levels  of  performance, and  the                                                               
percentages of  populations benefitting from improvements  at the                                                               
five- and ten-year periods.  She  advised a map of which specific                                                               
communities would be affected is unavailable.                                                                                   
                                                                                                                                
8:23:55 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PARISH  noted the cost  of data varies  widely and                                                               
asked whether commitments have been  made as to the affordability                                                               
of communication services.                                                                                                      
                                                                                                                                
MS. PIDGEON acknowledged the affordability  issue is a continuous                                                               
challenge  and the  ultimate goal  is to  ensure that  users have                                                               
access to broadband.  For  mobile broadband, GCI offers statewide                                                               
plans; however, wireline  plans differ, and GCI  seeks to address                                                               
the affordability issue and to ensure reliable service.                                                                         
                                                                                                                                
REPRESENTATIVE JOHNSTON questioned how  this situation is similar                                                               
to the challenges  overcome by the [Rural  Electrification Act of                                                               
1936].                                                                                                                          
                                                                                                                                
MS.  PIDGEON  was  unsure.    Regarding  service  to  challenging                                                               
locations,  the situation  is similar  as  to how  to ensure  the                                                               
delivery  and  maintenance  of  services to  rural  areas.    She                                                               
suggested upcoming  technological advancements that could  make a                                                               
difference are on the horizon.                                                                                                  
                                                                                                                                
REPRESENTATIVE JOHNSTON commented  that rural electrification and                                                               
improvements to  broadband services both were  initiated to serve                                                               
communities that  [did not or]  do not have  significant economic                                                               
capacity.                                                                                                                       
                                                                                                                                
CHAIR  DRUMMOND  pointed  out   the  difficulties  of  a  network                                                               
connection to rural Alaska.                                                                                                     
                                                                                                                                
REPRESENTATIVE JOHNSTON suggested the use of satellites.                                                                        
                                                                                                                                
8:29:06 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KOPP  asked whether GCI is  exploring partnerships                                                               
with Quintillion.                                                                                                               
                                                                                                                                
MS.   PIDGEON  declined   to  respond   to  decisions   regarding                                                               
arrangements  with a  particular company,  but acknowledged  that                                                               
avenues for expansion and partnerships are routinely assessed.                                                                  
                                                                                                                                
REPRESENTATIVE  KOPP noted  GCI receives  public funding  and has                                                               
commitments  to  expand;  Quintillion  offers  huge  capacity  to                                                               
villages in the northwest Arctic, and GCI could benefit.                                                                        
                                                                                                                                
8:31:12 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FANSLER   recalled  previous  testimony   that  a                                                               
regulatory structure  within the state is  inhibiting the buildup                                                               
of the networks.                                                                                                                
                                                                                                                                
MS. PIDGEON was unsure of  the specific reference, and added that                                                               
there  are  varying levels  of  regulatory  oversight related  to                                                               
permitting,  siting, and  the ability  to  deploy networks,  thus                                                               
providers seek a timely and  reasonable [regulatory] process.  In                                                               
further response to Representative  Fansler, she said regulations                                                               
can at  any time be  improved to provide greater  certainty; from                                                               
GCI's perspective  there are no particular  regulations that have                                                               
prevented GCI's  progress.  She  cautioned although,  in general,                                                               
regulations  need   review  over  time,  changes   can  introduce                                                               
additional uncertainty.                                                                                                         
                                                                                                                                
8:34:58 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  PARISH asked  for  a further  description of  the                                                               
options available to GCI in a partnership with Quintillion.                                                                     
                                                                                                                                
MS.  PIDGEON   said  network  providers  can   arrange  to  "swap                                                               
capacity."                                                                                                                      
                                                                                                                                
REPRESENTATIVE PARISH observed  electrical utilities are required                                                               
to share capacity and asked whether broadband utilities do so.                                                                  
                                                                                                                                
MS. PIDGEON said  there are different practices  and standards of                                                               
law  that apply,  but they  may  differ from  that of  electrical                                                               
utilities.                                                                                                                      
                                                                                                                                
8:36:46 AM                                                                                                                    
                                                                                                                                
The committee took a brief at-ease.                                                                                             
                                                                                                                                
8:37:48 AM                                                                                                                    
                                                                                                                                
WILL JOHNSON, Representative, Alaska  Satellite Internet, said he                                                               
is a  30-year resident of Alaska.   Mr. Johnson said  the Jupiter                                                               
II  satellite  was launched  in  December,  [2016]  and is  in  a                                                               
successful  final  orbit.    He  provided  historical  background                                                               
information on  satellites, beginning  in 1957 with  the launches                                                               
of Sputnik  1 and  Sputnik 2  by Russia.   He observed  the first                                                               
rockets and satellites were small (slides 1-3).                                                                                 
                                                                                                                                
8:42:42 AM                                                                                                                    
                                                                                                                                
The committee took a brief at ease.                                                                                             
                                                                                                                                
8:43:43 AM                                                                                                                    
                                                                                                                                
MR. JOHNSON said the U.S.  unsuccessfully attempted to launch the                                                               
Vanguard TV3,  weighing only  three pounds.   On 3/17/58,  a U.S.                                                               
Vanguard satellite weighing 3.2  pounds was launched successfully                                                               
and  remains in  orbit  (slide  4).   He  provided the  following                                                               
definitions used to describe satellites (slide 5):                                                                              
                                                                                                                                
   · Low Earth Orbit (LEO); 100-1,240 miles up                                                                                  
   · Medium Earth Orbit (MEO); 1,240 miles up to below GEO                                                                      
   · Geosynchronous Orbit (GEO); 22,300 miles up                                                                                
   · Highly Elliptical Orbit (HON)                                                                                              
                                                                                                                                
MR. JOHNSON  directed attention to Iridium  satellite phones that                                                               
were first made  possible by a 64  satellite [constellation] from                                                               
Motorola.    One  satellite  has   been  destroyed  by  a  midair                                                               
collision.   The satellite  phones provide  text and  phone, have                                                               
international  numbers,   and  relay   signals  from   ground  to                                                               
satellite and then to the ground  station.  He described the cost                                                               
and availability (slide 6).                                                                                                     
                                                                                                                                
8:48:35 AM                                                                                                                    
                                                                                                                                
MR. JOHNSON said  the next satellite for phone use  in Alaska was                                                               
provided by  the Globalstar  [constellation], which  is currently                                                               
available and provides text, voicemail,  and Internet, and relays                                                               
from ground to  satellite and to a ground station.   He described                                                               
the  cost  and   availability  (slide  7).     Both  Iridium  and                                                               
Globalstar  phones  utilize LEO  satellites.    The GEO  Inmarsat                                                               
satellite phones provide clear audio,  do not work near the North                                                               
Pole  or South  Pole, are  very expensive,  and are  not commonly                                                               
used in Alaska (slide 8).   He explained Globalstar then produced                                                               
the Spot  locating device  for application in  Alaska.   The Spot                                                               
devices  can be  used  to  locate someone  in  an emergency,  can                                                               
establish one-way  communication, and are inexpensive  (slide 9).                                                               
Globalstar  also has  an asset  tracking device  available called                                                               
Trace.                                                                                                                          
                                                                                                                                
8:52:33 AM                                                                                                                    
                                                                                                                                
CHAIR DRUMMOND asked for the range of the devices.                                                                              
                                                                                                                                
MR.  JOHNSON explained  the satellites  are high  enough to  work                                                               
very  well in  Anchorage.   Spidertracks were  developed for  the                                                               
aviation industry,  provide text,  global coverage, and  are more                                                               
expensive   (slide  11).     A   portable   device  for   two-way                                                               
communication  is   inReach,  which  provides  text   and  email,                                                               
emergency locating, and is relatively inexpensive (slide 12).                                                                   
                                                                                                                                
MR.  JOHNSON informed  the committee  it is  very challenging  to                                                               
provide satellite  services in Alaska.   Challenges  to providing                                                               
service  include:    logistics for  shipping;  large  land  mass;                                                               
economics;  FCC  requirement  for  certified  installers;  ground                                                               
movement, wind, and  cold temperatures; environmental conditions;                                                               
off  grid power  situations that  are unstable;  low look  angles                                                               
from satellites that are located  at the equator; the O3B network                                                               
is  only available  in the  middle latitudes;  TV dealers  bundle                                                               
with satellite Internet (slide 13).                                                                                             
                                                                                                                                
8:58:40 AM                                                                                                                    
                                                                                                                                
MR.  JOHNSON reported  Starband was  one of  the first  satellite                                                               
networks  for consumers  in Alaska  but is  no longer  available,                                                               
however, several of  its antennas have been  repurposed for other                                                               
satellite  services  (slide  14).   With  the  exception  of  the                                                               
Aleutian  Islands and  the Pribilof  Islands, available  today in                                                               
Alaska is the  HughesNet Gen2.  The HughesNet Gen2  was the first                                                               
"two-way," and the satellite returns  the signal to the Internet.                                                               
He said the  satellite is a Horizons 1 GEO  satellite that uses a                                                               
reflector  and   provided  more   information  as  to   cost  and                                                               
availability  (slide 15).   Mr.  Johnson  advised consumers  seek                                                               
unlimited access  over speed.  Slide  16 was a map  depicting the                                                               
coverage of the Horizons 1 satellite,  and he advised for a large                                                               
part  of Alaska,  the  Horizons  1 is  "all  we  have."   Another                                                               
consumer satellite  for Internet access  in Alaska is  Exede, and                                                               
the characteristics  include:   high and in  a good  location for                                                               
Alaska; band of  coverage from Prince William  Sound to Kotzebue;                                                               
good  performance,  relatively;  price range  from  $60-$150  per                                                               
month; speed increase expected; easy  to install and service, but                                                               
a  certified installer  is  required due  to  the possibility  of                                                               
damage to the satellite; .74 meter  antennas work in the beam and                                                               
larger antennas work  outside the beam (slide 17).   Slide 18 was                                                               
a map that depicted the Exede spot beam.                                                                                        
                                                                                                                                
9:07:00 AM                                                                                                                    
                                                                                                                                
MR. JOHNSON  continued to the  HughesNet Gen5 satellite  which is                                                               
the most  powerful broadband satellite  launched to date,  and he                                                               
provided  further  information   on  pricing  and  specifications                                                               
(slide 19).   Slides 20-22 depicted Hughes Jupiter  1 and Jupiter                                                               
2  spot beams.   For  schools and  libraries, Ku  band Enterprise                                                               
Services  are intended  for larger  entities where  cable is  not                                                               
available;  specialized options  that are  not available  through                                                               
consumer  services  are also  possible  (slide  23).   Enterprise                                                               
Service providers  include:  Hughes HX,  Switch, Galaxy, iDirect,                                                               
Exede  Business, Starband,  and Network  Innovations (slide  24).                                                               
Innovations coming in  the future to Alaska include  new types of                                                               
antennas,  and  LEO  and  GEO   satellites  working  together  to                                                               
facilitate low latency applications,  so every customer will have                                                               
the benefits of two satellites (slide 25).                                                                                      
                                                                                                                                
9:11:16 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SPOHNHOLZ  asked  Mr.   Johnson  to  clarify  low                                                               
latency.                                                                                                                        
                                                                                                                                
MR. JOHNSON  explained there  is a time  delay when  data travels                                                               
through space  and returns to  earth; the time delay  is latency,                                                               
which is affected  by the speed of the connection:   high latency                                                               
and low speed  creates a poor connection, and  the roundtrip time                                                               
is approximately  one-half second.  Mr.  Johnson turned attention                                                               
to  concerns  about  whether low  altitude  satellites  work  and                                                               
pointed out they already service  satellite phones that currently                                                               
carry data and  voice.  Many more satellites will  be needed, and                                                               
there are big companies with  "big money" interested in providing                                                               
satellite coverage.   He  expressed confidence  that as  early as                                                               
2018, satellites  will be  in place.   Future satellites  will be                                                               
mass-produced  and inexpensive;  polar orbiting  satellites could                                                               
possibly launch  from Alaska (slide 25).   Slides 26 and  27 were                                                               
images  of antennas.    Slide  28 was  a  list  of LEO  satellite                                                               
providers.                                                                                                                      
                                                                                                                                
9:15:44 AM                                                                                                                    
                                                                                                                                
KRISTINA   WOOLSTON,   Vice    President,   External   Relations,                                                               
Quintillion, provided  brief personal  background.   She informed                                                               
the  committee Quintillion  is headquartered  in Anchorage,  is a                                                               
privately funded company, and its  project is privately funded by                                                               
investors  including  Alaska  investors   such  as  Arctic  Slope                                                               
Regional Corporation.   Quintillion is building  and will operate                                                               
a  multi-phase  fiber optic  cable  network  that will  begin  in                                                               
Alaska and subsequently connect  Alaska with Asia, Arctic Canada,                                                               
and  Europe.   Quintillion will  sell wholesale  capacity on  its                                                               
system  that  will  encourage competition  and  participation  by                                                               
multiple telecom  service providers.  Capacity  will be delivered                                                               
at 50-90  percent price reductions  - when compared  to microwave                                                               
and satellite  - and service will  begin in and around  Alaska in                                                               
2017 (slide 2).  Slide 3 was  a map which showed the three phases                                                               
of expansion:   Phase 1 is  almost complete; Phase 2  will expand                                                               
the network from  Nome to Asia; Phase 3 will  expand from Prudhoe                                                               
Bay through  the Northwest  Passage to Europe.   She  pointed out                                                               
each phase is financially independent  and viable, and the system                                                               
is  designed  as a  trunk  and  branch  configuration.   Slide  4                                                               
provided a view  of the Alaska system, and she  explained a trunk                                                               
and  branch   configuration  means  each  branch   moves  into  a                                                               
community;  for  example,  routes  into  Nome  and  Kotzebue  are                                                               
completely independent of other  branches, unlike a "daisy chain"                                                               
configuration.   Phase 1 is  anchored by a system  from Fairbanks                                                               
to Prudhoe Bay, and in 2016 most  of the work was completed.  Ms.                                                               
Woolston stated this  is the beginning of  the Quintillion system                                                               
in Alaska and there are plans for expansion.                                                                                    
                                                                                                                                
9:20:38 AM                                                                                                                    
                                                                                                                                
MS.  WOOLSTON   turned  attention   to  pricing  and   noted  the                                                               
challenges  of  bringing fiber  optic  cable  (fiber) to  certain                                                               
areas; however, fiber is the  best backhaul [transporting data to                                                               
a distribution  point] option because it  has unlimited capacity.                                                               
The Quintillion  system is designed  for 10,000,000  megabits per                                                               
second  (Mbps)  per  fiber  pair,  with  the  ability  to  triple                                                               
capacity.   The cost of  construction is higher,  particularly in                                                               
Arctic  regions, but  due  to  the design  and  longevity of  the                                                               
system,  the  cost of  operation  and  maintenance is  lower  and                                                               
drives down the total cost of  fiber.  In addition, the system is                                                               
complementary  with  existing  communications  infrastructure  in                                                               
rural  Alaska (slide  6).   Ms.  Woolston said  the benefits  and                                                               
applications  for   fiber  include:    education;   health  care;                                                               
government;  economic  development;  emergency  response;  public                                                               
safety; national strategy (slide 7).                                                                                            
                                                                                                                                
9:23:27 AM                                                                                                                    
                                                                                                                                
MS. WOOLSTON informed the committee  the investors in the project                                                               
directed  Quintillion  to  build   and  operate  the  system,  so                                                               
Quintillion  acquired   the  assets  of  Arctic   Fibre  for  the                                                               
construction  phases;  design  and installation  take  about  4.5                                                               
years.     Construction   and   installation  into   [Utqiagvik],                                                               
Wainwright, Point  Hope, Kotzebue,  and Nome is  complete, except                                                               
for a  small segment, and the  system will be monitored  over the                                                               
winter for risk  factors (slide 9).  As  part of risk-mitigation,                                                               
she  described   how  cable  landings  are   bored  and  drilled,                                                               
beginning at  the shore, and  the fiber  is buried in  conduit to                                                               
minimize shoreline disruption  to the communities.   The cable is                                                               
made  of high  quality  glass  and is  protected  by coating  and                                                               
armoring.  Many  local companies have been  contracted to install                                                               
the  system  such as  New  Horizons  Telecom, Inc.,  and  others.                                                               
Alcatel-Lucent  Submarine  was  chosen   to  design,  build,  and                                                               
construct the  subsea system  due to  its success  with repeaters                                                               
that mitigate latency (slide 10).   Slide 11 was a diagram of the                                                               
fiber to illustrate how it is constructed.                                                                                      
                                                                                                                                
9:27:00 AM                                                                                                                    
                                                                                                                                
MS. WOOLSTON  addressed the  time and  planning required  for the                                                               
project.   Two  years  of marine  surveys  with geotechnical  and                                                               
geophysical studies  have revealed  risk factors along  the cable                                                               
route  such as  gold dredges  in Nome  and ice  scouring off  the                                                               
Arctic  coastline.    Also,  a significant  amount  of  time  was                                                               
invested  in permitting  and easements,  and Quintillion  was the                                                               
first  to complete  this process  (slide  12).   Slide 13  listed                                                               
typical risks  and mitigation plans.   Although human interaction                                                               
is  the  biggest risk  to  subsea  cables elsewhere,  subsea  ice                                                               
gouging is  the greatest risk  in Alaska.   For example,  off the                                                               
North  Slope ice  breaks  and gouges  the  seabed; after  mapping                                                               
historical gouging, Quintillion designed  its system with a cable                                                               
buried deeper than any historical  ice gouging.  Also, the system                                                               
has  dual redundant  network equipment  that can  be repaired  if                                                               
necessary.   Ms. Woolston provided  slides of ships  laying cable                                                               
and digging a cable trench (slides 14  and 15).  Slides 16 and 17                                                               
showed tug  boats moving ice  during cable installation.   Slides                                                               
18 and 19 showed cable-laying ships.                                                                                            
                                                                                                                                
9:31:20 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   FANSLER   surmised  Quintillion   will   provide                                                               
infrastructure, and then sell or lease capacity to providers.                                                                   
                                                                                                                                
MS.  WOOLSTON  said  correct.     Quintillion  does  not  provide                                                               
telecommunication services to consumers.                                                                                        
                                                                                                                                
REPRESENTATIVE  FANSLER  asked at  what  point  the cable  system                                                               
would reach maximum capacity.                                                                                                   
                                                                                                                                
MS.  WOOLSTON  said  Quintillion   believes  there  is  unlimited                                                               
capacity for the Alaska market.                                                                                                 
                                                                                                                                
REPRESENTATIVE  FANSLER commented  that there  is enthusiasm  for                                                               
the project with hope that  further expansion into Western Alaska                                                               
is planned.                                                                                                                     
                                                                                                                                
REPRESENTATIVE SPOHNHOLZ  asked in what  quarter of 2017  Phase 1                                                               
will come online.                                                                                                               
                                                                                                                                
MS. WOOLSTON  said Phase 1 is  expected to be operational  in the                                                               
4th  quarter  [of 2017].    Construction  will begin  in  August,                                                               
followed  by confidence  testing, and  finally service  providers                                                               
would have access.                                                                                                              
                                                                                                                                
9:35:33 AM                                                                                                                    
                                                                                                                                
PAUL  BARTOS, Principal,  Star of  the  Northwest Magnet  School,                                                               
Northwest Arctic  Borough School District, provided  a PowerPoint                                                               
presentation entitled, "Star of the Northwest Magnet School."                                                                   
                                                                                                                                
The committee took an at-ease from 9:35 a.m. to 9:36 a.m.                                                                       
                                                                                                                                
9:36:55 AM                                                                                                                    
                                                                                                                                
MR.  BARTOS informed  the  committee the  Star  of the  Northwest                                                               
school (Star)  is located  above the  Arctic Circle  in Kotzebue,                                                               
which  is  the hub  community  for  the Northwest  Alaska  region                                                               
(slide 2).   In its second year of operation,  Star is a fulltime                                                               
boarding  school for  Alaska high  school  students primarily  in                                                               
eleventh and twelfth grades (slide 3).   The students at Star are                                                               
supported by the  University of Alaska (UA) and -  through the UA                                                               
system -  are provided dual  enrollment.  Star students  can also                                                               
take  courses through  the Alaska  Technical Center  and Kotzebue                                                               
High School.   He said one  of the ways Star  utilizes technology                                                               
is by streaming important basketball  games through its home page                                                               
to all  villages and  communities in the  region.   Further, Star                                                               
school  is  supported  by the  Northwest  Arctic  Borough  School                                                               
District, which  provides video teleconferenced  instruction from                                                               
teachers throughout the district.                                                                                               
                                                                                                                                
MR.  BARTOS  continued  to  explain   Star  offers  its  students                                                               
fulltime enrollment  and noted nine  of its twelve  graduates are                                                               
continuing to higher education at  UA Fairbanks and UA Anchorage.                                                               
Also offered  to students  are ReadySTAR  programs that  are two-                                                               
week intensive courses  which provide exposure and  focus on four                                                               
topics, and he gave an example  of the school's use of technology                                                               
in support  of a  hearing-impaired student.   Mr.  Bartos advised                                                               
the  dorm at  the  school  is utilized  year  around; during  the                                                               
summer the Alaska Native Science  and Engineering Program (ANCEP)                                                               
will have  a program  in Kotzebue  for sixth-grade  students, and                                                               
also  teachers new  to the  region will  attend camp  there.   He                                                               
further explained  the structure  of Star school  offers students                                                               
four  pillars  [of  high-paying   career  choices]:    education,                                                               
process technology, culinary  arts, and healthcare (slide  4).  A                                                               
partnership   with  the   U.S.   Coast   Guard  (USCG)   provides                                                               
opportunities  for students  to  explore  unique job  placements.                                                               
Star also offers certifications, such  as safe food handler, that                                                               
can be  used to  obtain summer employment.   Mr.  Bartos stressed                                                               
the component  of relevancy:   motivation for students  to attend                                                               
school and  reap the  rewards of  their work  (slides 5-6).   For                                                               
example, the education  pillar is offered to address  the lack of                                                               
teachers  in the  state.   He related  fifteen Star  students are                                                               
participating  in a  competition in  Anchorage using  technology.                                                               
The  Northwest Arctic  Borough School  District (NWABSD)  will be                                                               
offering three  video conferencing  classes statewide  this fall,                                                               
and  Mr. Bartos  advised Star  seeks  to expose  students to  the                                                               
latest  curriculum  and  the latest  technology  with  customized                                                               
schedules; in fact,  two students from Kivalina  have completed a                                                               
millwright  program and  will be  employed  at the  Red Dog  mine                                                               
(slide 6).                                                                                                                      
                                                                                                                                
9:44:08 AM                                                                                                                    
                                                                                                                                
MR. BARTOS  advised Star is fortunate  to have industry-qualified                                                               
certificated   instructors  working   with  and   supporting  its                                                               
students.     He  turned  to  Internet   technology  and  related                                                               
PowerSchool is  Star's interface  for day-to-day  operations such                                                               
as  attendance  and academics,  and  the  system would  not  work                                                               
efficiently if  there were latency  in the connection.   Students                                                               
use the  Canvas learning  systems, which can  be accessed  in the                                                               
dorm, thus learning  continues even when students are  not in the                                                               
classroom  (slide 7).    Further, the  school  provides the  same                                                               
Internet  services  as  urban  districts  with  .015  percent  of                                                               
Internet  strength   by  filtering   firewalls.     Students  are                                                               
currently provided 69  kilobits per second (Kbps)  and the school                                                               
seeks  to provide  100  Kbps;  to reach  this  goal NWABSD  would                                                               
accrue  additional costs  of $164,000  per month  (slide 7).   He                                                               
noted the  school has grown  from zero students  and applications                                                               
in fiscal year  2015 (FY 15), to twenty  applications and twenty-                                                               
five fulltime students  in FY 17; Mr. Bartos stated  his pride in                                                               
Star school and its programs (slide 8).                                                                                         
                                                                                                                                
REPRESENTATIVE PARISH pointed out Kotzebue  will be served by the                                                               
Quintillion  fiber  network, and  asked  how  the new  connection                                                               
would affect the schools Internet speed and cost.                                                                               
                                                                                                                                
MR. BARTOS advised the Kotzebue  Internet connection is currently                                                               
slower because Kotzebue has more  students than other areas.  The                                                               
new  connection  will  provide  equal  Internet  usage  for  Star                                                               
students.                                                                                                                       
                                                                                                                                
REPRESENTATIVE KOPP  asked if there  could be  additional federal                                                               
communications partnership  opportunities should USCG  expand its                                                               
operations in Kotzebue.                                                                                                         
                                                                                                                                
MR. BARTOS said Star school seeks  to grow and add a fifth pillar                                                               
for  career opportunities  in transportation,  both maritime  and                                                               
aviation that would utilize a partnership with USCG.                                                                            
                                                                                                                                
REPRESENTATIVE JOHNSTON inquired as  to the possibility that Star                                                               
school may consolidate with Chukchi College.                                                                                    
                                                                                                                                
MR. BARTOS deferred the question to his supervisor.                                                                             
                                                                                                                                
CHAIR  DRUMMOND returned  attention  to slide  7 which  indicated                                                               
$164,000 per month  is needed to bring NWABSD up  to the FCC 2014                                                               
short term  goal.  She asked  for the school's present  cost [for                                                               
Internet access].                                                                                                               
                                                                                                                                
MR. BARTOS offered to provide the requested information.                                                                        
                                                                                                                                
9:51:30 AM                                                                                                                    
                                                                                                                                
BRIAN  ASHTON,  HughesNet,  informed   the  committee  he  helped                                                               
introduce the HughesNet  company into Alaska about  10 years ago.                                                               
He advised  a new  Internet satellite just  coming online  is the                                                               
most  powerful in  the world,  although there  are many  areas in                                                               
rural  Alaska  the  satellite  will  not  reach  because  of  its                                                               
position.    However,  HughesNet plans  on  launching  additional                                                               
satellites  about every  three years  and for  20 percent  of the                                                               
funding  FCC  has  for  Alaska,  HughesNet  could  launch  a  new                                                               
satellite  as powerful  as Jupiter  II to  cover all  Alaska, and                                                               
exceed FCC's  goal.   He stressed legislators  should ask  FCC to                                                               
update its  Alaska Plan, look  at all the options  available, and                                                               
find  the  best infrastructure  design  for  Alaska at  the  best                                                               
price.                                                                                                                          
                                                                                                                                
REPRESENTATIVE JOHNSTON asked whether Mr.  Ashton is aware of low                                                               
orbital satellite technology usage related to social media.                                                                     
                                                                                                                                
MR. ASHTON said yes.                                                                                                            
                                                                                                                                
[Mr.  Aston  repeated  comments   for  the  benefit  of  upcoming                                                               
speakers.]                                                                                                                      
                                                                                                                                
9:55:53 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHNSTON restated  her question,  suggesting that                                                               
Alaska could participate in pilot  projects since there are fewer                                                               
satellites in place in the Northern Hemisphere.                                                                                 
                                                                                                                                
9:56:19 AM                                                                                                                    
                                                                                                                                
MIKE COOK, Executive Vice President,  Sales and Marketing, Hughes                                                               
Network Systems,  informed the  committee Hughes  Network Systems                                                               
(Hughes)  is the  operator of  the  HughesNet satellite  Internet                                                               
service which is  available across the U.S. and  elsewhere in the                                                               
world.  HughesNet has about  one million subscribers and provides                                                               
direct  Internet   access  to  homes.     Currently,   Hughes  is                                                               
activating HughesNet Gen5 service  using an Echostar 19 satellite                                                               
launched  December, 2016.    The satellite  is  the biggest  data                                                               
communications  satellite  in the  world,  and  he described  the                                                               
satellite's capabilities  that will  result in service  plans for                                                               
Alaska that will meet FCC broadband specifications.                                                                             
                                                                                                                                
MR.  COOK, in  response to  Representative Johnston,  referred to                                                               
lower   orbiting  systems,   and  advised   Hughes  is   building                                                               
infrastructure  for  the  OneWeb  system which  is  a  system  of                                                               
hundreds  to thousands  of  constantly  orbiting satellites  that                                                               
work together  to always keep subscribers'  devices within range.                                                               
He further explained lower orbiting  systems provide coverage for                                                               
the entire  globe, and an  additional benefit to Alaska  from the                                                               
OneWeb  system  is  that  the satellites  are  in  polar  orbits.                                                               
Additional  benefits  of  lower   orbiting  systems  are  greater                                                               
coverage  and less  latency, however,  the capacity  of each  LEO                                                               
satellite is  not as great  as that of  a larger satellite.   Mr.                                                               
Cook said the  OneWeb system has funding and will  use the newest                                                               
technology  in  its  system, which  is  expected  be  operational                                                               
before 2021.                                                                                                                    
                                                                                                                                
10:02:15 AM                                                                                                                   
                                                                                                                                
MR.  COOK continued,  noting the  current state  of communication                                                               
satellite technology also provides  for large satellites with 300                                                               
gigabits per  second capacity.   Future technology will  make the                                                               
system much  more capable  than the  service plans  are offering,                                                               
and the  capabilities are expected  to increase further  within 5                                                               
years.  Service can be  delivered directly to consumers' homes or                                                               
can provide backhaul links to  local areas that are not connected                                                               
by cable.                                                                                                                       
                                                                                                                                
REPRESENTATIVE SPOHNHOLZ  asked how the  cost of launching  a new                                                               
satellite  compares with  other broadband  services, and  how the                                                               
speed of the data compares.                                                                                                     
                                                                                                                                
MR.  COOK  responded satellites  come  in  various sizes;  a  LEO                                                               
satellite  is  relatively inexpensive,  but  many  are needed  to                                                               
provide service.   In  terms of order  of magnitude,  a satellite                                                               
that cost $500 million is expected  to operate for about 15 years                                                               
and will deliver  about 220 gigabits per second,  or roughly $200                                                               
million per  gigabit.  However,  a satellite for Alaska  could be                                                               
built  to concentrate  the available  capacity and  be the  right                                                               
size, capacity,  and cost,  or an Alaska  entity could  acquire a                                                               
"hosted payload" on  another company's satellite.   Mr. Cook said                                                               
there are  several options to  deliver the desired service  at an                                                               
acceptable cost.                                                                                                                
                                                                                                                                
10:08:55 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE PARISH asked whether the  typical life span of the                                                               
Echostar 19 is about 15 years.                                                                                                  
                                                                                                                                
MR. COOK  said yes, for  a geostationary satellite;  however, the                                                               
orbit decays more quickly for  lower orbit satellite systems.  In                                                               
further  response  to  Representative   Parish,  he  clarified  a                                                               
satellite should be launched as  close to the equator as possible                                                               
for optimal  launch characteristics, although, a  satellite could                                                               
be designed to best meet the needs of the market in Alaska.                                                                     
                                                                                                                                
10:11:25 AM                                                                                                                   
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Education Standing Committee meeting was adjourned at 10:11 a.m.                                                                

Document Name Date/Time Subjects
Quintillion.pdf HEDC 3/24/2017 8:00:00 AM
Quintillion AK Leg House Education Committee Presentation.pdf HEDC 3/24/2017 8:00:00 AM
AK Satelitte Internet.pdf HEDC 3/24/2017 8:00:00 AM
ADN Article.pdf HEDC 3/24/2017 8:00:00 AM
NWABSD Education Commitee Presentation.pdf HEDC 3/24/2017 8:00:00 AM