Legislature(2017 - 2018)BUTROVICH 205
01/27/2017 08:00 AM Senate EDUCATION
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| Audio | Topic |
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| Start | |
| Presentation: Increasing Broadband Access and Capacity for Rural Areas | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
ALASKA STATE LEGISLATURE
SENATE EDUCATION STANDING COMMITTEE
January 27, 2017
8:00 a.m.
MEMBERS PRESENT
Senator Shelley Hughes, Chair
Senator Gary Stevens
Senator Cathy Giessel
Senator John Coghill
Senator Tom Begich
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
PRESENTATION: INCREASING BROADBAND ACCESS AND CAPACITY FOR RURAL
AREAS
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
TINA PIDGEON, Senior Vice President/General Counsel
GCI
Anchorage, Alaska
POSITION STATEMENT: Presented information about network
capabilities in Alaska.
MICHAEL BURKE, CEO
Matanuska Telephone Association (MTA)
Anchorage, Alaska
POSITION STATEMENT: Provided information about broadband in
Alaska.
KRISTINA WOOLSTON, Vice President
External Relations
Quintillion
Anchorage, Alaska
POSITION STATEMENT: Presented information on the broadband
capabilities Quintillion provides.
HEATHER CAVANAUGH, Director of Communications
Alaska Communications (AC)
Anchorage, Alaska
POSITION STATEMENT: Presented information regarding broadband in
Alaska.
COLIN UNDERWOOD, Program Manager
Alaska Communications (AC)
Anchorage, Alaska
POSITION STATEMENT: Presented information regarding broadband in
Alaska.
CHRISTINE O'CONNOR, Director
Alaska Telephone Association (ATA)
Anchorage, Alaska
POSITION STATEMENT: Presented ATA's Alaska Plan.
ACTION NARRATIVE
8:00:07 AM
CHAIR SHELLEY HUGHES called the Senate Education Standing
Committee meeting to order at 8:00 a.m. Present at the call to
order were Senators Begich, Giessel, Coghill, and Chair Hughes.
Senator Stevens arrived shortly thereafter.
^PRESENTATION: INCREASING BROADBAND ACCESS AND CAPACITY FOR
RURAL AREAS
PRESENTATION: INCREASING BROADBAND ACCESS AND CAPACITY FOR RURAL
AREAS
8:00:44 AM
CHAIR HUGHES announced that the only order of business would be
a presentation on Increasing Broadband Access and Capacity for
Rural Areas. She said a number of organizations will be
addressing the current status and plans for future expansion and
costs of broadband in Alaska. She listed the presenters.
8:02:04 AM
CHAIR HUGHES stated that the committee will be having a series
of exploratory hearings on "What we can do to do a better job
for students." The committee will be addressing the question
whether the state can do a better job of improving the quality
of education. She suggested by levering technology the state may
be able to save money while improving education. She asked
whether the state could do something differently that would be
better, such as increasing opportunities for students, improving
the outcomes, and improving graduation rates. Today's hearing is
the first step toward that goal. She stressed that she would
like communities, parents, students, and schools to be involved
and be a part of the conversation.
8:04:04 AM
TINA PIDGEON, Senior Vice President/General Counsel, GCI,
presented information about network capabilities in Alaska. She
began by stating that for GCI, providing broadband network
statewide is a priority. She said GCI is continually looking for
ways to advance and improve broadband capability and capacity
across the state and deliver better services to all communities
and customers through innovation and progress.
8:05:58 AM
MS. PIDGEON showed a map of Alaska that depicts statewide
service capabilities of many providers, both existing and
planned through 2017. The map shows different types of
technology available. There are three technologies used to
deliver broadband from an internet point of presence
distribution; fiber, microwave, and satellite. In some cases,
there are several ways of delivering broadband to communities
and in other cases, only satellite is available. Everywhere
there is a community, satellites have the ability to deliver
broadband services. Video teleconferencing can be delivered
successfully over satellite to all communities.
She noted that fiber locations have typically been available to
communities on the road system. That is changing and in the
northern part of Alaska the fiber is being deployed by
Quintillion's subsea cable systems. Fiber has the greatest speed
and capacity available and opportunity for growth and expansion.
Microwave services can provide the same speed, but the capacity
is somewhat more limited. There must be a full hardware change
out in order to expand and it can be more expensive. The
technology selection has as much to do with geology as with cost
characteristics.
She related that satellite services are relevant for providing
continued services and there have been many advancements in
traffic management, however there are some limitations, such as
latency. As broadband applications advance, fewer communities
rely on satellite because some applications are not designed to
overcome latency. She explained the ways latency can be
resolved, such as by caching. She pointed out that there are a
number of satellite projects globally that are underway and have
promise in the future.
8:12:39 AM
MS. PIDGEON addressed how schools are able to use broadband as a
tool in the classroom, such as to report and amplify instruction
and to provide access to new information. Distant learning and
video teleconferencing are widely used. She gave an example of
the Lower Kuskokwim School District making good use of video
teleconferencing. She noted schools have invested in devices to
meet on-line testing mandates, duel enrollment for high school
and college courses, learning management systems, and video
conferencing. All of these broadband applications are available
using all technologies. Schools in a satellite area might have
to take extra steps in terms of prioritizing the traffic or how
they utilize the applications.
8:14:30 AM
MS. PIDGEON pointed out that broadband is facilitating school
business outside the classroom, such as for social media, for
training, sharing report card information, and holding
districtwide meetings. Districts are also investing in Wi-Fi
capabilities to replace hard wiring, which is more costly and
easier to upgrade.
8:15:53 AM
CHAIR HUGHES noted the arrival of Senator Stevens.
8:16:04 AM
MS. PIDGEON continued with how the "cloud" provides services by
storing and managing data off site. It provides greater security
options and additional IT support. It is another way of getting
out of having multiple hardware services in house. The Cloud
could affect and improve energy usage, also.
MS. PIDGEON concluded that there are many opportunities that
exist today and more on the horizon. She said GCI does have the
network capability to access and provision those opportunities.
She offered to answer questions.
8:18:05 AM
CHAIR HUGHES thanked Ms. Pidgeon.
8:18:17 AM
MICHAEL BURKE, CEO, Matanuska Telephone Association (MTA),
provided information about broadband in Alaska. He stated that
MTA has a high priority to provide service to schools in its
region. MTA is a consumer-owned co-op of about 29,000 members.
He listed the three school systems in their service area: Mat-Su
School District, Eagle-River/Chugiak School District, and Tyonek
School, a part of the Kenai Peninsula School District. He said
MTA is committed to providing fast broadband to all schools in
the area. They have constructed fiber optic cable to all but
Tyonek School, which is served by microwave. He added that MTA
is actively working on school curriculum assistance. He noted
the former Mat-Su superintendent emphasized the importance of
technology in schools. He gave examples of how MTA worked on a
middle school computer coding class.
He stressed the importance of the connectivity MTA provides, not
just in the classroom, but after school for internet access.
There are still some areas that have yet to get broadband
connectivity.
He spoke of federal regulations that hamper MTA, as well as
regulatory changes by the Federal Communications Commission
(FCC) that interfered with infrastructure investment and
delivery. He mentioned a future fiber optic cable project.
MR. BURKE related that schools need faster and better broadband
to function as modern schools. He concluded that MTA has a role
of assuring that schools move into the modern century with
technology access. He offered to answer questions.
8:25:35 AM
CHAIR HUGHES thanked Mr. Burke.
8:26:19 AM
At ease
8:26:43 AM
KRISTINA WOOLSTON, Vice President, External Relations,
Quintillion, presented information on the broadband capabilities
Quintillion provides. She said Quintillion is based in Anchorage
and is building a multi-phase fiber optic cable network along
the northern coast of Alaska and around the Prudhoe Bay area.
She pointed out that Quintillion is a private operator selling
wholesale capacity to telecom service providers and whose
capacity is available to all service providers. They are
privately funded and deploying fiber that deliver 50 percent to
90 percent reductions for wholesale, dedicated capacity compared
to current backhaul operations, such as satellite and microwave.
MS. WOOLSTON focused on Alaska projects in their planned
network. She said they are deploying a terrestrial fiber from
Fairbanks to Prudhoe Bay and communities along the way. At
Prudhoe Bay the fiber goes subsea along the coast of Alaska
delivering services to communities along the way. Those
communities will come online in 2017. She noted they have worked
with construction contractors to provide cable to the Arctic,
which will be online later this year. She noted the design of
the system is logical and feasible. She described how the
Arctic-resilient system was built and described its capacity.
8:32:06 AM
She spoke of the challenges of being the first Arctic provider.
The permitting process has been substantial. It is the second
year of marine installation. She concluded that the company
keeps in mind what will benefit communities and schools and is
helping to prepare students for positions locally and in other
places.
She spoke of the cost benefits of operating and maintaining
fiber optic cable, which are lower over time than microwave or
satellite. She listed the benefits of having unlimited capacity
with 10 million Mbps per fiber pair.
MS. WOOLSTON concluded with the benefits of fiber to rural
communities: education, health care, government, economic
development, emergency response, public safety, and for national
strategy areas identified in the President's National Strategy
for the Arctic Region.
8:35:29 AM
CHAIR HUGHES thanked Ms. Woolston. She noted the timeline was
faster than most expected.
8:36:05 AM
HEATHER CAVANAUGH, Director of Communications, Alaska
Communications (AC), presented information regarding broadband
in Alaska. She shared her background as an Alaskan and listed
the areas AC serves. She spoke of the need to connect broadband
to schools and noted the role it plays in the economy. She spoke
of the company's work on improving the broadband structure in
Alaska. She said AC's purpose is to be a partner for Alaska
organizations and AC needs to earn the trust of all its
customers. She related AC's responsibilities and investments it
has made.
She provided examples of partnerships AC has been involved in to
deliver broadband. She reported that last year AC became the
first Microsoft partner to offer Cloud services in Alaska and
the only Microsoft-certified Gold Education Partner in the
state.
8:40:20 AM
MS. CAVANAUGH discussed AC's core network and listed its service
areas and partnerships. She noted AC offers internet solutions
and gave examples. She said they are partners with Quintillion
and she described their relationship.
8:42:28 AM
COLIN UNDERWOOD, Program Manager, Alaska Communications (AC),
presented information regarding broadband in Alaska. He
described his personal information and then addressed AC's
Education Rate (E-rate) Program, which makes telecommunications
and information services more affordable for schools and
libraries in America. He said the E-rate program began in 1996
and provides discounts from 20 percent to 90 percent, depending
on an area's poverty level and location. As of June 30, 2016,
Alaska has received over $500 million in E-rate support since
1998.
He described AC's projects in the Kenai Peninsula School
District. The E-rate Program now supports one-time payment of
broadband infrastructure construction for rural communities.
8:44:52 AM
CHAIR HUGHES thanked the presenters.
8:45:04 AM
CHRISTINE O'CONNOR, Director, Alaska Telephone Association
(ATA), presented ATA's Alaska Plan, the foundational funding
mechanism for rural networks in Alaska. The Alaska Plan
operates, upgrades, and extends broadband development in remote
Alaska. It supports improved and new, both fixed or landline and
mobile or wireless broadband, as well as voice service. It
increases broadband access, but also sustains existing broadband
networks.
8:46:36 AM
She described the Universal Service Fund (USF), a federal
program to fund broadband networks in high cost areas of the
country. She noted the USF has been crucial to Alaska's
networks. In many rural communities there is not an economic
business case for broadband, but with USF funding, providers
have been able to build and operate broadband networks and will
be expanding and upgrading them over the ten-year period of the
Alaska plan.
8:47:10 AM
MS. O'CONNOR explained that federal Universal Service Fund (USF)
reform orders in 2011 were bad for Alaska. Reform had a
disproportionate impact on Alaska. By the end of 2015, wireline
support was reduced by 21 percent, whereas nationally the
average reduction was 2 percent. She described how the Alaska
Plan was developed. The FCC finally adopted it in August of
2016.
8:48:18 AM
MS. O'CONNOR related that the Alaska Plan freezes $150 million
in existing USF annual funds for broadband service to areas
outside of major urban centers. She stressed how essential the
funding is to Alaska. She said many of the rural networks depend
on this funding. The predictability of the Alaska Plan is
essential.
8:49:49 AM
She turned to public interest obligations. She described how the
Alaska Plan funds services in remote Alaska, requires both voice
and broadband service, supports both landline and wireless
service, and requires mandatory speeds.
She said the Alaska Plan introduces a new level of
accountability to USF in Alaska, with new monitoring, reporting,
and potential penalties. The FCC is particularly focused on
mapping locations with broadband service and monitoring the
availability of "middle mile" - [the network infrastructure that
connects local networks to other network service providers,
major telecommunications carriers, and the greater internet.]
Each company must report progress annually and there are
penalties for non-performance.
8:51:18 AM
MS. O'CONNOR concluded that the Alaska Plan is an essential
funding mechanism which will both operate and deploy broadband
service to Alaska's communities in rural areas over the next ten
years. It brings stability that is essential when investing in
broadband structure.
CHAIR HUGHES thanked Ms. O'Connor and opened the meeting to
questions.
8:51:59 AM
SENATOR GIESSEL requested clarification from Ms. O'Connor about
the cost to schools by various service providers.
MS. O'CONNOR explained that the cost would be set by the
providers. The Alaska Plan is the underlying funding that
companies use to operate and deploy the networks. The companies
would use the E-rate Program requirements to determine the cost
for schools.
SENATOR GIESSEL asked about FCC overseeing penalties for goals
not met. She asked if there is a state agency that also has
oversight.
MS. O'CONNOR replied that there is dual oversight; the FCC has
an Educational Tax Credit (ETC) designation which involves
oversite also by the Regulator Commission of Alaska (RCA). Each
company submits reports to the FCC, as well as to the RCA who
reviews the reports and certifies them, sending them back to the
FCC. RCA and FCC have a partnership review.
8:54:05 AM
SENATOR GIESSEL asked about installing undersea cable and
whether an Environmental Impact Statement (EIS) is needed first.
8:54:30 AM
KRISTINA WOOLSTON explained the permit process which does not
include an EIS. She listed the FCC and DOT permits Quintillion
had to go through.
8:55:17 AM
SENATOR STEVENS inquired how funding predictability from the
federal government for 30 to 40 years can be assured.
MR. UNDERWOOD said there are no guaranteed funding sources. He
opined the state should make use of what is available now.
SENATOR STEVENS thought the more important question is what
Alaska's needs are. The majority of expenses are picked up by
the federal government and he looked to a future time when
Alaska would not need federal funds.
MR. UNDERWOOD had no comment.
8:57:09 AM
CHAIR HUGHES asked what would be a realistic window for
completing an E-rate project.
MR. UNDERWOOD said two to five years.
8:57:40 AM
MS. PIDGEON added that there is a multi-dimensional answer to
the question. It is difficult to expect the same level of
funding, and combinations of funding sources will always be
available. Also, the demand continues to grow, and the pace of
growth is underestimated. The state must find ways to meet the
demand for broadband the best it can. The providers use a
combination of the funding streams that are available, but also
look at improved technology to improve the efficiencies in
service for cost savings. As the demand grows it makes sense to
invest in terrestrial capacity, both fiber and microwave.
9:00:00 AM
CHAIR HUGHES asked off-net presenters to respond.
9:00:15 AM
MS. O'CONNOR said ATA is looking forward to working with the
larger world industry to see what happens after ten years in
order to make changes to the universal service fund. They are
also exploring technology changes, such as improved satellite
technology. She noted there is incremental progress being made
in state on on-going projects to connect more rural communities.
She predicted that would continue over the next few years to
advance broadband.
CHAIR HUGHES asked if the new federal administration is
interested in improved telecommunication infrastructure.
9:02:16 AM
MR. BURKE said he has heard there may be funding proposed by
Congress for broadband expansion, but it is in the early stages.
He suggested that the state should advocate for funding and
investment in the "Last File" - the distribution of broadband
services to consumers. There is still a big need to fund the
"middle mile" which has extremely high costs ranging from $1.5
billion to $2 billion. Additional federal funding would greatly
help.
He stressed the need for continuous education, partnerships, and
dialogue with the FCC on Alaska's policy issues, so the state
can make good decisions.
9:05:05 AM
CHAIR HUGHES focused on rural areas with only satellite. She
asked if there are any villages that do not have fiber,
microwave, or satellite.
9:05:45 AM
MS. PIDGEON stated that every community has the ability to
access satellite, which has become more economical.
CHAIR HUGHES asked if there are still some villages that do not
have satellite.
MS. CAVANAUGH offered to provide a list of those that do not
have broadband capability.
9:07:24 AM
CHAIR HUGHES wished to understand about data caching and whether
only one classroom at a time can be served.
9:08:12 AM
MS. PIDGEON explained that to have a non-HDVTC (High Definition
Video Conferencing) quality connection requires about 1.2
Mbit/s. To enable an HD-quality connection is about 2 Mbit/s. It
is not a function of whether the service is capable of being
provided, but rather the cost and how much capacity is being
purchased and provided in a particular location. The question is
whether the capacity is available in a particular community size
to accommodate both VTC capability and any other additional
broadband applications running alongside. If it is one session,
it is 1.2 to 2 Mbit/s; multiple education sessions running side-
by-side are additive on a point-to-point basis.
CHAIR HUGHES asked how many communities have enough capacity to
enable multiple sessions and how it effects their cost.
MS. PIDGEON stated it is costly. The legislature has provided
funding over the last couple of years to ensure that every
school district is able to purchase at least 10 Mbit/s of
capacity which would enable a match from FCC's E-rate program.
She did not know what each school district is doing. Each
district determines how they allocate bandwidth.
9:11:02 AM
MR. BURKE understood that the carrier of last resort - AT&T - is
obligated to provide a Microgravity Experiment Recoverable
Satellite (MERS) station to every community of 25 or more
residents. Broadband capacity can be ordered through that
connection.
CHAIR HUGHES asked about new technology regarding improved
satellite and whether the state can expect it within a year or
two.
MS. PIDGEON said she could only guess at the answer. She
estimated it would be a five-year period of time. There are no
fewer than five global projects under discussion now. The volume
of discussion in this area and the ability of those projects to
meet the demands and economics for services globally makes it
much more possible for this type of improved satellite delivery.
She noted an on-going proceeding at the FCC regarding licensing
of a number of the projects. She referred to a map that shows
the connectivity statewide in 2010 and noted the phenomenal
change in available infrastructure since then.
9:14:19 AM
SENATOR BEGICH referred to the broadband grants. He pointed out
that having access does not necessarily mean the school
districts access the services. He inquired if there is data
about how many school districts take advantage of broadband
services.
9:15:07 AM
MS. PIDGEON said that information is publically available
through the Universal Service Administrative Company which
administers the E-rate program, but it does not show how much
bandwidth is used, only the amount of requested capacity and
what is awarded and funded.
9:15:53 AM
SENATOR BEGICH asked about the universal service charge on
utility bills and whether there is an effort to retain some of
that money for upgrades in the future.
9:16:51 AM
MS. O'CONNOR explained that money from the charge does not have
a banking mechanism, but companies structure their businesses to
assume responsibility for future upgrades beyond ten years.
SENATOR BEGICH asked if there is less opportunity for
interaction between a student and a teacher at satellite cache
sites.
MS. PIDGEON said cache sites are not good for interactive
education, such as video-teleconferencing. They are useful for
running multiple applications at the same time.
9:19:16 AM
SENATOR BEGICH asked if every provider participates in the
Alaska Plan.
MS. CAVANAUGH said AC does not participate in the Alaska Plan
because it falls under a different regulatory structure. She
said AC will receive $19.2 million from Connect America over the
next ten years to build broadband structure, primarily along the
road and out to communities from there.
SENATOR BEGICH suggested that the Lower Kuskokwim School
District present on how they use broadband and Yukon Flats or
Aleutians East present satellite use.
He also suggested considering a $.50 universal service fee to
protect long-term broadband investment.
9:21:03 AM
CHAIR HUGHES responded that they are working on having
presentations from school districts. She summarized that the
committee wants to know what the barriers to improving
technology access are. She wants to see schools have live
interaction and multiple sessions. She requested that each
presenter respond.
9:22:34 AM
MR. BURKE related that he would direct the committee to the
Alaska Broadband Task Force for an analysis of how to provide
high speed broadband access to all Alaskan communities. That
would include replacing satellite with microwave and/or fiber.
He said the cost would be substantial, around $1.2 billion or
more, and it would take years to get there. There are design and
planning issues, permitting issues, and a short construction
season.
9:24:00 AM
MS. WOOLSTON said the FCC defined broadband as having a speed of
25 Mbit/s or higher. Having 100 Mbit/s per second is a terrific
goal. She shared Quintillion's excitement as a company bringing
fiber into communities for the first time. She opined that
encouraging and enabling competition in communities will bring
the cost of services down.
9:25:08 AM
MS. O'CONNOR concurred with Mr. Burke's comments regarding the
Task Force. She added that providers are working on new projects
that push the edges. She agreed that it will take years and is
incremental, but they are working hard on it.
9:25:42 AM
MS. CAVANAUGH said it is a great challenge to connect all of
Alaska's rural and remote communities with high speed broadband.
She concurred with Mr. Burke and Ms. Woolston regarding the Task
Force. A big piece is to build fiber infrastructure to the
"middle mile" network and is a serious challenge.
9:26:30 AM
MR. UNDERWOOD noted in 2010 the FCC released a broadband report
which recommended about one megabit per student, so some
communities are looking at more than 100 Mbit/s. Affordability
is a barrier for some schools and some are not able to afford
that amount of broadband.
9:27:22 AM
MS. PIDGEON noted a common thread across the testimony - a deep
desire to meet the needs and demands in education. The challenge
is that it is very costly. There is a lot of competition
nationally for limited resources. She suggested that looking
ahead at the best way to position the state is to have a
unified, pragmatic, and realistic approach. Advancing
experiences of success and sharing stories about how today's
funding is being put to good use is important.
9:29:32 AM
CHAIR HUGHES thanked all the presenters. She maintained that
there is much the state can do with the present structure, such
as using virtual classrooms. Kids in classrooms now need greater
opportunities. She noted several school districts already have
pockets of exciting activities.
9:30:57 AM
There being no further business to come before the committee,
Chair Hughes adjourned the Senate Education Standing Committee
at 9:30 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| GCI_Senate Education_1_27-2017 Presentation Map 1.pdf |
SEDC 1/27/2017 8:00:00 AM |
|
| GCI_Senate_Education_1_27_2017_Presentation_Map 2.pdf |
SEDC 1/27/2017 8:00:00 AM |
|
| 2017-01-27 Alaska Plan for Senate Education Cmte.pptx |
SEDC 1/27/2017 8:00:00 AM |