My name is Ed Allis.  I am the Executive Director – Governmental Affairs for AT&T in the state of Arkansas.  My biographical summary was previously submitted for the record.  AT&T extends a warm welcome to Commissioners Adelstein and Copps.  A field hearing such as this is a unique experience for those of us involved in the telecommunications industry and all of us are appreciative of this opportunity to provide a local perspective on “The State of Broadband in Arkansas.”

 

AT&T Arkansas traces its roots back to the state’s first switchboard in 1879, right here in Little Rock – almost 130 years ago, just three years after Alexander Graham Bell invented the telephone.  Today, AT&T is the state’s oldest and largest provider; serving 102 local exchanges across the state.  In addition to landline service, we offer high speed broadband internet access, wireless and satellite TV service to communities large and small.  AT&T’s commitment to rural Arkansas should be apparent.

 

This fact finding hearing comes not a moment too soon.  Along with most others from whom you will hear today, AT&T considers the timing critical for Arkansas’ future.  I believe we have come to recognize that we are in a race, not just with other states – but with other nations as well.  Simply stated, Arkansas must first catch up before it can surpass others.  By now you are aware of Connect Arkansas and the broadband data collection activities in which it has engaged.  According to Connect Arkansas, Arkansas ranks:

 

Despite those statistics, the Committee should note that Arkansas has made significant progress in bringing technology to rural parts of the state.  Some of the presenters today have outlined some of that progress in their areas of knowledge or will shortly.

 

 

For its part, AT&T has demonstrated a fundamental commitment to rural America and rural Arkansas in a number of ways.  While there may be some that believe AT&T is a company that provides telecommunications services only to urban areas of the country, that’s simply not the case.  In fact, AT&T is the single largest provider of telephone service to rural America -- we serve over 7 million rural customers.

 

In Arkansas, of AT&T’s 102 exchanges, 57 have fewer than 3,000 access lines; 40 have fewer than 1,000 access lines and 16 have fewer than 500.  One exchange, Arkansas City, has just 100 access lines.  Beyond doubt, AT&T is a rural provider in Arkansas and across America and has demonstrated a commitment to those areas.

 

For example, in the past two years AT&T has contributed grants of $4.6M to support the needs of various rural communities throughout the country.  It is expanding the availability of broadband over satellite (provided by WildBlue) across its 22 state wireline footprint.  At the same time, AT&T has deployed additional wireline broadband in Arkansas this year and plans additional deployment in 2008.  AT&T anticipates that every Arkansas exchange will have broadband capability by the end of 2008.

 

In Arkansas, AT&T is particularly proud of its involvement in distance learning.  AT&T provides and maintains network facilities used by the State of Arkansas for VNet, a fully interactive video conferencing network used for education, healthcare and state government.  There are approximately 520 interactive video sites on VNet, including:

Usage has grown to over 20,000 conference hours per month.  More than 400 courses are being taught using the technology, giving students access to an enriched curriculum and college preparatory courses and providing professional development opportunities and instructional resources for teachers and administrators.  Both AT&T and the state have garnered numerous awards for VNet.

 

AT&T was one of the first major providers to commercially launch fixed wireless broadband using wireless and other technologies.  Fixed wireless offers the potential to deliver broadband internet to areas where wireline high speed internet or cable modem services are not available today.

 

Setting aside the consumer segment for a moment it should be noted that regardless of location, most businesses in Arkansas generally have access to high speed internet access.  Through high capacity facilities, even remotely located businesses generally can obtain high speed internet access, but it’s at prices that only a business can reasonably be expected to pay.

 

Yet, despite the strides that have been made there is still much to be done.  If the provision of broadband in rural Arkansas was easy, it would be there today.  However, significant hurdles stand in the way in many areas.  That’s why AT&T is committed to helping to develop collaborative, innovative solutions at both the state and local level.

 

While AT&T intends to continue its pursuit of its own broadband initiatives, AT&T is convinced that Connect Arkansas holds the key for the most rapid acceleration of broadband deployment by all providers.

 

 

Connect Arkansas is an entity that is uniquely equipped to coordinate all of the various resources in the state for a common purpose.

 

It is common knowledge that Connect Arkansas has used Connect Kentucky as a model.  There are good reasons for this as statistics from Kentucky demonstrate.

 

Before Connect Kentucky, approximately 60% of that state had access to broadband service.  Today:

 

Connect Arkansas was established by Act 604 (sponsored by Senator Capps) passed by the 86^th General Assembly earlier this year.  Among other things it is designed to map broadband availability in Arkansas and stimulate demand through education of users regarding the benefits of broadband.  Much of this education will be coordinated through county officials and volunteers.  Since Connect Arkansas is a private non-profit entity, it will be able to enter into non-disclosure agreements with all providers so that proprietary competitive data can be collected and analyzed.  That will be a key component of the mapping process.

 

Connect Arkansas’ efforts will be technology neutral.   Recommendations and proposals for individual underserved areas of rural Arkansas may depend on an analysis of which technology appears to be most suitable.  While an approach like this will require extraordinary cooperation among all participants, it is a cornerstone of the Connect Arkansas program and inherent in Act 604.

 

If Connect Arkansas is successful, the state as a whole will reap substantial and tangible benefits.  Connect Arkansas has estimated that 8,200 jobs will be created and over $2.6B will be added to the Gross State Product annually.

 

For the time being Connect Arkansas is without the public funding that could be used for educating consumers, establishing e-committees and training county officials, providing grants, etc.  The initial source of funding must come from private sources and perhaps state government agencies and educational institutions that have the available resources.

 

Ideally, Connect Arkansas would be funded through a tri-partite partnership of federal funds, state funds and private funding.  While the Arkansas General Assembly will likely be asked to make state funding available in the future, it will be helpful if sources of federal funds could be found.  All of the involved parties in Connect Arkansas would be willing to work with Senator Pryor’s office and other members of the Committee in order to facilitate an investment of this type in Arkansas’ future.

 

The FCC as well has the capacity to influence the economic future of this state.  In July of this year, AT&T submitted an ex parte presentation to the FCC in which it suggested a pilot project designed to accelerate the deployment of broadband to rural America.  It would provide funding on a technology neutral basis while long term reform of the Federal Universal Service Fund is being debated.  Additional information regarding the pilot project is being submitted to the Committee for inclusion into the record.

 

If all of the collaborative efforts planned for the state come to fruition and broadband becomes a reality in all parts of rural Arkansas, what we will have is a beginning – an important beginning.  It will be a first step; but, the reason you take a first step is so you can take additional steps.  We must not lose sight of the long term needs of Arkansans.  More bandwidth and more availability is inextricably tied to Arkansas’ ability to compete for economic development, jobs, educational opportunities and a quality of life that Arkansans deserve.