June 25, Ms. Marlene Dortch Secretary Federal Communications Commission th Street, SW Room TW-A325 Washington, D.C.

Transcription

1 June 25, 2013 Ms. Marlene Dortch Secretary Federal Communications Commission th Street, SW Room TW-A325 Washington, D.C RE: Ex parte filing in WC Docket Nos Dear Ms. Dortch: On June 24, 2013, the undersigned met with Joseph Sorresso, Alexander Minard, AmyBender, Christopher Cook and Jamie Susskind of the Wireline Competition Bureau. The balance of our discussion was spent providing information on a privately financed undersea fiber that is being constructed between Asia and Europe by Arctic Fibre, with a completion date of It will pass offshore along the Seward Peninsula and the Northwest Arctic and North Slope Boroughs of Alaska and Quintillion Networks has exclusive rights to build fiber spurs into Alaska. Each landing will provide a 100 Gbps capacity on day 1 of service. This fiber provides the opportunity to finally bring true broadband at much more affordable backhaul rates than are currently available to much of un-served and underserved Alaska. With a new middle mile alternative open to all service providers, competition is created at the last mile. The lower cost on the middle mile and open access will create competition that will lower the amount of support needed, not only for the High Cost Fund, but also Schools and Libraries and Rural Healthcare and puts support for rural Alaska on a sustainable, lower cost path. As required by the Commission s rules, this ex parte record is now filed in the above referenced dockets. If there are any questions, please call me at Respectfully submitted, /s/ Elizabeth Pierce, CEO Quintillion Networks, LLC Copy to: Joseph Sorresso, Alexander Minard, AmyBender, Christopher Cook Jamie Susskind Attachment: Fueling Sustainable Broadband Solutions Middle Mile Development Can Reduce USF Subsidies & Drive Competition in Alaska 201 East 56 th Avenue, Suite 300 Anchorage, Alaska 99518

2 FUELING SUSTAINABLE BROADBAND SOLUTIONS Middle Mile Development Can Reduce USF Subsidies & Drive Competition in Alaska June 2013

3 Introduction Quintillion Networks global communications, fast, reliable and secure Owner-Builder-Operator investing in middle mile infrastructure to connect Alaska, national and global customers New middle-mile submarine and terrestrial fiber optic cable Carriers Carrier, open access Alaska-based company Committed to providing high capacity, reliable connectivity at much lower cost Proprietary Information June 2013, Slide 2

4 Introduction Quintillion Networks Executive Team Elizabeth Pierce, Chief Executive Officer 12+ year in Alaska telecommunications 25+ year experience with infrastructure projects in the far North Former executive with Alaska Communications Hans Roeterink, Chief Operating Officer 30+ year history in International telecommunications and energy Former executive with TDX Power & Deutsche Telekom US Sarah Barton, Chief Strategy Officer Program Management of large Alaska infrastructure projects Former executive with Arcadis/RISE Proprietary Information June 2013, Slide 3

5 Improving Broadband Alaska Spurs and Interconnect Arctic Fibre + Quintillion Networks Quintillion is the exclusive Alaska partner for all spurs and interconnect rights to the Arctic Fibre network in the US Arctic Fibre network is a subsea fiber optic cable extending from London to Tokyo via the Bering Strait, Beaufort Sea and Canadian Arctic Scheduled in-service date Proprietary Information June 2013, Slide 4

6 Arctic Fibre & Quintillion Networks Proprietary Information June 2013, Slide 5

7 Alaska Middle Mile : Today Challenges Unique to Alaska Alaska and Broadband Challenges Alaska has 255 remote, non-road-connected communities spread over 600,000 square miles; roughly an area twice the size of Texas Broadband is limited in both availability and capacity The high cost of broadband impedes adoption of high-value services supporting education, health care and efficient delivery of government services Access and affordability challenges impede economic development Environmental protection and emergency response impeded by lack of broadband capacity in developing markets Proprietary Information June 2013, Slide 6

8 Alaska Fiber Optic Cable in 2013 Wainwright Barrow Prudhoe Bay Kotzebue Nome Fairbanks Bethel Anchorage Dillingham Kodiak 4 Cables run to landings in Oregon and Washington Public Information June 2013, Slide 7

9 Quintillion Networks 100G Network Quintillion Networks will add new broadband capacity with subsea fiber optic cable builds to 5 Alaska Landing Sites Nome, Kotzebue, Wainwright, Barrow, & Prudhoe Bay Day 1 Deployment will deliver up to 100 Gbps bandwidth at each landing The Alaska Middle Mile Network will change Significant price reduction to last mile providers in affected markets Middle mile open to all service providers encourages competition on product, price and service at the last mile Provides real broadband to currently under and un-served areas Proprietary Information June 2013, Slide 8

10 Quintillion Networks 100G Network Proprietary Information June 2013, Slide 9

11 Alaska Fiber Optic Cable in 2015 Wainwright Barrow Prudhoe Bay Arctic Fibre Nome Kotzebue Fairbanks A second fiber optic cable is under construction from Fairbanks to Prudhoe Bay Bethel Anchorage Dillingham Kodiak 4 4 Cables run run to to landings in in Oregon and and Washington Proprietary Information June 2013, Slide 10

12 Lower Costs Improve Affordability Lower capital investment because of joint build with Arctic Fibre Additional revenue stream from traffic moving from Western US to international locations through Alaska Industry cooperation reduces overhead and avoids duplicate costs: colocation, outsourcing O&M, Lower cost of operation than microwave or satellite Competition on product, price and service at the user interface instead of on the backhaul Provides for more affordable base for connecting neighboring communities Proprietary Information June 2013, Slide 11

13 Extending the Middle Mile Example of Opportunity Connecting Teller and Brevig Mission from the Quintillion Spur at Nome Estimated cost for fiber build up to $14M, delivering gigabit capacity and low operating and maintenance costs Compared to $18.5M build for microwave, with limited bandwidth and high maintenance costs Utilizes existing road system : 72 miles of seasonal gravel roadway Provides communications infrastructure for future mine and deep water port projects Proprietary Information June 2013, Slide 12

14 Reducing Long Term Federal Subsidies High Capacity, Affordable Middle Mile for Alaska Quintillion Networks middle mile service rate will reduce backhaul costs by at least 50% from current satellite wholesale prices. Smart development of middle mile infrastructure will reduce cost of service and increase use of business, education, health-care and quality of life applications that will improve the social-economic conditions in rural Alaska Our next challenge is planning for and funding the extension of the fiber optic middle mile to deliver high capacity bandwidth at much lower costs to more rural Alaska communities Proprietary Information June 2013, Slide 13

15 Contact for More Information Elizabeth Pierce, CEO Hans Roeterink, COO Office: Quintillion Networks, LLC 201 East 56 th Avenue Anchorage, Alaska Proprietary Information June 2013, Slide 14

16 FUELING SUSTAINABLE BROADBAND SOLUTIONS Middle Mile Development Can Reduce USF Subsidies & Drive Competition in Alaska June 2013