Strickland for Governor “Tunaround Ohio” policy paper, released 3/13/06

BroadbandOhio: Powering Ohio's Economy and Connecting it to World Markets

    Turnaround Ohio is the Strickland/Fisher strategy to move our state in the right direction. The plan aims to keep and grow the jobs we have by investing in Ohio’s strengths, such as energy production, innovation and entrepreneurship, and the plan will bring the jobs of the future by making sure Ohio has the most-educated workforce possible – because, in the future, jobs will go where the workforce is best educated.

   The BroadbandOhio: Powering Ohio’s Economy and Connecting it to World Markets proposal aims to help meet one of Turnaround Ohio’s most important goals: developing the jobs of the future by leveraging the state’s investment in broadband infrastructure to create a competitive, well-connected economy in Ohio.

    Broadband is a fundamental building block of Ohio’s emerging new economy. Ohio has been blessed by a strong level of investment in broadband by its private sector telecommunications companies. Information and telecommunications technology is a critical component of Ohio’s economy, with more than 100,000 jobs. Telecommunications firms today are being called upon to react to lightning speed changes in the market, with new products at the intersection of cable, wireless and conventional telecommunications world. In those parts of the market in which the state continues to regulate, a Strickland administration will be as fair, technology-neutral, nimble and flexible as possible – with a clear understanding that in a hot market like this, “speed to market” is critical.

    Ohio is rated as one of the top states in the country in terms of its policies to support broadband deployment and usage. And, Ohio has some of the strongest community technology centers (CTCs) in the nation, which provide literacy, GED and computer training to disadvantaged Ohioans. Despite this, these challenges are before us:

    We need to bring the next generation internet to every one of Ohio’s 88 counties, connecting schools, colleges, and government while at the same time helping private enterprise or public-private partnerships in communities to offer competitively priced local services in areas that are currently underserved.

    Our regulatory structure must continue to accelerate, not impede, pervasive broadband deployment.

    The state’s significant investments in network assets need to be leveraged to begin realizing the returns that were promised to Ohio’s taxpayers with the passage of the Third Frontier Initiative last year.

    We need to take steps to close Ohio’s digital divide by supporting community efforts to bring the benefits of broadband and technology training to low and moderate income Ohioans.

    In order that we can make Ohio the most competitive, well-connected economy in the nation and the national leader in the deployment and effective use of broadband networking, as governor, Ted Strickland will:

Establish the Ohio NextGen Network, saving the state and local governments up to $100 million and establishing next generation broadband access across Ohio.

    Establish the Ohio NextGen Network Authority to manage the state’s broadband network.

    Building on Ohio’s strong tradition of collaboration, we will establish the Ohio NextGen Network to manage long-term oversight and planning of Ohio’s high performance network. This will ensure that the network remains true to its initial goals: to support higher education and research, spur job growth, and lower state connectivity and administrative computing costs. The state’s significant network costs and investments require a consolidated, consistent method by which to manage its network assets and coordinate core activities, such as maintenance of physical fiber, DWDM lighting gear, billing and revenues, and other shared functions. This authority will bring the private sector in early so that we may share plans for deployment, and better leverage each other’s investments. The Ohio NextGen Network Authority will rely upon the private sector to manage this enhanced state network and facilitate creative last-mile solutions.

   Reform the method by which the state procures connectivity for all state agencies, boards and commissions.

   Use the Ohio NextGen Network Authority to oversee the realignment of current state telecommunications projects.

   We will use the Ohio NextGen Network to carry state government data and voice traffic, while reserving a place for private telecommunications carriers to provide last-mile connectivity to agency locations. Based upon Pennsylvania’s experience in this area, we believe that we can renegotiate state and local government contracts to make them more flexible while assuring reasonable returns to private sector vendors. We project that by doing so we can save the state and local governments up to $100 million over the next 5 years.

    Use Ohio NextGen Network to connect state and local government to the benefits of next generation broadband.

    Ohio’s state and local governments can also benefit from using Ohio’s NextGen Network. Today, the state spends more than $31 million on network connectivity for state agencies, boards and commissions. This does not include the network costs taxpayers use for the 2300 local units of government, 738 public libraries, or the state’s court system, which is also making plans to invest in a separate state data network. The Ohio NextGen Network, at an initial capital cost of $1.6 million and operating costs of $600,000 annually, can carry the same traffic for a fraction of the costs.

Aggressively use the Ohio NextGen Network to extend affordable broadband to remote areas of the state and boost new and growing industry sectors in Ohio.

   Make the Ohio NextGen Network available for economic development and industry.

   Many Ohio communities have invested in economic development assets such as technology parks or downtown wireless districts, but don’t have competitive access to affordable broadband. A Strickland administration will work to accelerate, and never to compete with, the statewide availability of competitive, private, broadband networking services. The investment required is $1.6 million in capital costs and about $600,000 in operation costs annually. These amounts will be paid for from the Third Frontier bond proceeds and from savings gained by reforming state procurement of network connectivity.

   Use Ohio NextGen Network for health care research and development.

   The Ohio NextGen Network will be used to create a dedicated virtual space for research and development that will put Ohio healthcare institutions at the forefront of new healthcare information technologies and delivery systems. This approach will boost the ability of Ohio’s healthcare information firms to use and deploy new technologies, such as electronic patient records, that have the potential to help to stabilize costs. The images and data in these records are massive files that require immense bandwidth assets to move. The Ohio NextGen Network can function as a place to test new healthcare information and patient record technologies and images. And the presence of such a dedicated network will position Ohio companies well to compete for new Federal programs devoted to developing new healthcare information technologies. The investment required is $1.6 million in capital costs and about $600,000 in operation costs annually. These amounts will be paid for from the Third Frontier bond proceeds and from savings gained by reforming state procurement of network connectivity.

Take steps to close Ohio’s digital divide and directly link Ohio’s distance learning assets to communities and people actively seeking new opportunities. 

    Use the Ohio NextGen Network to help private sector telecommunications providers complete the extension of affordable broadband connectivity to all citizens in every one of Ohio’s 88 counties.

   By using the state’s network to bring broadband connectivity to every county seat, we can move traffic from a vast array of state and local government agencies quickly, cheaply and efficiently. By allowing private sector carriers to “piggy back” on the state’s network – to bring local traffic to their core networks at no charge – we can help them to extend their vital services to rural markets that are not economical for them to serve today. In doing so, we will help to improve the business case for broadband investment in remote areas, thus providing competitively-priced broadband pervasively statewide. This will help entrepreneurs in remote areas link to new markets, lowering network costs for local government units with limited funds, and allowing thousands of home-schooled children to participate effectively in learning online. Extending the Ohio NextGen network to all 88 counties will be an investment of up to $50 million in capital costs which we will allocate from the Third Frontier Initiative bond proceeds over the next 4 years.

   Create the “Last-Mile” Investment Program to improve local connectivity in all Ohio counties.

   Once the Ohio NextGen Network is extended to every county, local communities will need help to extend that network to key business locations throughout the county, if they are not served by a competitive broadband service provider. This $50 million competitive program will make investments in non-profits or private sector firms in each community to help them build out the “last mile” connectivity in remote communities. Existing Third Frontier Initiative bond proceeds will be used to finance this program over the next 4 years.

   Enlist the private sector to give communities straight answers on broadband availability in local markets.

   Many communities are actively seeking ways to bring broadband wireless and mesh networks to their cities and towns statewide. Often, they are not aware of the resources or capabilities of private sector telecom providers to meet their needs. A Strickland administration will call upon the private sector to establish an “Ohio Broadband Clearinghouse”, a website and referral center for communities and assure that they get an accurate reading on the investment and deployment plans of private telecom providers for broadband deployment. This clearinghouse will assure that providers understand what plans a community is making, and communities understand what investments a private sector carrier is contemplating. Requests for assistance in the “Last Mile” grant program will be vetted through this “Ohio Broadband Clearinghouse” to assure an efficient, coordinated response from both the public and private sectors.

   Establish the Ohio Community Learning Centers Initiative, to boost the use of online and distance education services through Ohio’s network of community technology centers.

   Modeled on successful programs such as the Cuyahoga Community College’s project at Rainbow Terrace, and over 300 community technology centers (CTCs) statewide, this program will mobilize CTCs with hands-on staff support and join them with the online learning resources of the Ohio Learning Network and the Ohio College Access Network. Using the base program E4ME, a free online course, this program will in its pilot phase serve 10,000 learners statewide with life skills coaching, basic computer and GED classes, while channeling successful learners into pathways for further advancement through community and technical colleges and other career training enterprises. It will provide individuals with hands-on counseling to take them from the informal learning environment of a CTC to open doors to higher education and formal certification. Implementing this program is estimated to be an annual investment of at least $5 mllion. The program will be paid for with savings gained by reforming state procurement of network connectivity.

SOURCES OF FUNDING:

    These initiatives will be funded entirely out of current state and federal funding sources, and require no new GRF revenues. Overall, the proposal will cost $154.8 million in capital costs, primarily from the Third Frontier Bond proceeds, and $6.8 million in operating costs. The operating costs will be recouped from estimated state savings of $20-40 million over the next 4 years, and up to $100 million in local government and other state agencies. In particular, a Strickland administration will:

   Modernize the method by which the state procures network connectivity, streamlining, simplifying and consolidating network purchases and directing agencies to use the Ohio NextGen network, potentially saving $100 million over the next five years in state and local expenditures.

   Use Third Frontier bond funds to extend the Third Frontier Network to all 88 county seats. Investment will be $50 million to create local loops to connect every county seat; will require rewriting rules to put broadband into the priority investment list for TFI funding.

   Achieve administrative cost efficiencies by eliminating waste and duplication in antiquated information systems, and improving productivity. A portion of those savings will be used to expand Ohio’s efforts to close the digital divide.