Project Grant 0640MM438

PURPOSE: THE NETWORK IS DESIGNED TO ENABLE ISPS TO COST-EFFECTIVELY BUILD AND OPERATE LAST-MILE NETWORKS IN REMOTE PARTS OF THE STATE AND SIGNIFICANTLY REDUCE THE OVERALL COST OF CONNECTING UNSERVED OR UNDERSERVED AREAS. IMPLEMENTATION OF THAT NETWORK DESIGN WILL CREATE WIDESPREAD ECONOMIC DEVELOPMENT OPPORTUNITIES AND ENSURE DIGITAL EQUITY. ACTIVITIES TO BE PERFORMED: CONSTRUCTION OF 680 MILES OF MIDDLE-MILE FIBER ACROSS 37 SPURS THAT ARE PART OF THE LARGER STATEWIDE MIDDLE-MILE NETWORK, BRINGING IT WITHIN 5 MILES OF 288,000 UNSERVED ADDRESSES AND 14 TRIBAL ENTITIES, AND WITHIN 1,000 FEET OF 1,124 ANCHOR INSTITUTIONS. THE NETWORK SPURS COVERED WILL HELP COMPREHENSIVELY MEET THE BROADBAND NEEDS OF COMMUNITIES WITHIN THE PROJECT AREA BY MAKING AVAILABLE TO LAST-MILE SERVICE PROVIDERS THE DARK FIBER, LIT FIBER, AND OTHER SERVICES THAT ARE PRESENTLY LACKING OR NOT AVAILABLE ON COST-EFFECTIVE TERMS AND CONDITIONS. SUBSTANTIAL BENEFITS FROM THE FUNDED MIDDLE-MILE INFRASTRUCTURE WILL ACCRUE TO HIGH-POVERTY AREAS, TRIBAL LANDS, AND ANCHOR INSTITUTIONS. BENEFICIARIES: THE STATE OF CALIFORNIA'S MMBI AND THE 37 SPURS FOCUS ON CLOSING THE DIGITAL DIVIDE. SUBSTANDARD BROADBAND PREVENTS MILLIONS OF CALIFORNIANS FROM FULLY PARTICIPATING IN ESSENTIAL LIFE ACTIVITIES AND LIMITS BUSINESS DEVELOPMENT IN PARTS OF THE STATE. THE NETWORK SPURS WILL ALLOW THE STATEWIDE MIDDLE-MILE NETWORK TO EXTEND FARTHER INTO AREAS THAT ARE PARTICULARLY CHALLENGING TO LAST-MILE PROVIDERS DUE TO FACTORS SUCH AS GEOGRAPHY AND POPULATION DENSITY. CURRENT PROVIDERS DO NOT OFFER MIDDLE-MILE SERVICES COMPARABLE TO THE SERVICES PLANNED FOR THE STATEWIDE NON-DISCRIMINATORY OPEN-ACCESS NETWORK. SOME OF THE LAST-MILE ENTITIES HAVE ISSUES WITH MIDDLE-MILE PROVIDERS INCLUDING AN UNWILLINGNESS TO LEASE DARK FIBER TO COMPETITORS, AND IN CASES OF LIT FIBER, PROHIBITIVE COSTS. BUILDING ROUTES THAT HAVE PREVIOUSLY BEEN OMITTED FROM COMMERCIAL PLANS DUE TO BUSINESS CASE FEASIBILITY WILL INCENTIVIZE LAST-MILE CARRIERS TO SERVE THESE COMMUNITIES AND WILL IMPROVE THE BUSINESS CASE FOR NEW OR EXPANDED INVESTMENTS IN LAST-MILE NETWORKS IN UNSERVED AND UNDERSERVED AREAS. BUILDING THE ROUTES WILL ALSO ADDRESS INTERESTS EXPRESSED BY ISPS AND ENTERPRISE CUSTOMERS IN HAVING ACCESS TO DARK FIBER AND LIT FIBER TO REDUCE THEIR COSTS. BRINGING THE COST OF NETWORK SERVICES, INTERNET, AND COLOCATION SERVICES IN RURAL AREAS INTO PARITY WITH WHAT A PROVIDER WOULD PAY FOR SUCH SERVICES IN A MAJOR METROPOLITAN AREA WILL LOWER RURAL PROVIDERS' OPERATING COSTS. IF THESE ROUTES ARE NOT BUILT BY THE STATE OF CALIFORNIA, THE UNSERVED AND UNDERSERVED SITUATIONS WILL CONTINUE BECAUSE THE EXISTING MIDDLE-MILE INFRASTRUCTURE IS INSUFFICIENT TO MEET THE NEEDS OF THE COMMUNITIES IN THOSE AREAS. EXPECTED OUTCOME: THE PROPOSED PROJECT HAS THE FOLLOWING GOALS AND DELIVERABLES: 1. OVER THE COURSE OF 3 YEARS, CONSTRUCT 680 MILES OF MIDDLE-MILE FIBER ACROSS 37 SPURS THAT ARE PART OF THE LARGER STATEWIDE MIDDLE-MILE NETWORK, BRINGING THE NETWORK WITHIN 5 MILES OF 288,000 UNSERVED ADDRESSES AND 14 TRIBAL ENTITIES, AND WITHIN 1,000 FEET OF 1,124 ANCHOR INSTITUTIONS. 2. LEVERAGE DARK FIBER INDEFEASIBLE RIGHTS OF USE AND EXISTING OPEN-ACCESS INTERNET BACKBONE LINKS AND SERVICES, TO ACCELERATE THE BUILDOUT OF THE NETWORK, ADD RESILIENCY, AND OBTAIN CONNECTIONS TO THE INTERNET AT THE MOST AFFORDABLE COST. SUBRECIPIENT ACTIVITIES: THE APPLICANT DOES NOT INTEND TO SUBAWARD FUNDS.