Innovation, Trade and Rural Development
December 13, 2007

Province Announces Next Phase of Government's Broadband Initiative

As part of Government�s Broadband Initiative (GBI), the province today released a Request for Proposals (RFP) seeking a telecommunications carrier to build and manage an advanced broadband network for its operations across the province. The new network will encourage investment and enable the delivery of high speed Internet access in all regions.

"Bringing advanced communications to all of the province�s regions has considerable socio-economic implications and is central to stimulating prosperous communities," said the Honourable Trevor Taylor, Minister of Innovation, Trade and Rural Development. "The world-class network will improve the communications capacity of the province�s rural and urban communities. We will have the necessary infrastructure to position the province in a competitive global environment."

The RFP marks a key phase in the development of the province�s long-term broadband strategy. This phase will invite telecommunications carriers to submit proposals for the development of a network that provides enhanced broadband access for publicly-owned facilities. During this process, carriers will also be encouraged to offer similar services to local residential and business customers.

"The Provincial Government has a presence in more than 200 communities. In those communities, GBI will allow us to take ownership of our telecommunications needs," said Minister Taylor. "Greater access to new technologies will provide rural residents with employment and academic opportunities, along with better access to government services."

The release of the RFP was precipitated by the Provincial Government�s $15 million investment in the province�s second trans-gulf fibre optic connection to mainland Canada. This connection enabled, for the first time, competition in the telecommunications sector. It additionally enables greater access for telecommunications carriers to deliver service to communities in all regions.

"The new trans-gulf network allowed the province to address its telecommunications deficit. With it, the benefits of increased competition are already being realized," said Minister Taylor. "Residential users are already experiencing the benefits of increased competition and commercial enterprises are able to access modern technologies."

To help foster an innovative climate and position the province as a leader on the global stage, the Provincial Government developed an innovation strategy, Innovation Newfoundland and Labrador: A Blueprint for Prosperity. A key component of this strategy is to improve broadband access in all regions of the province.

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Media contact:
Scott Barfoot
Director of Communications
Department of Innovation, Trade and Rural Development
709-729-4570, 690-6290
ScottBarfoot@gov.nl.ca

BACKGROUNDER

Government�s Broadband Initiative

In 2003, the Provincial Government established specific commitments for broadband and advanced networking in its Blueprint for the Future.

The Provincial Government assessed its communications requirements and formulated an approach to enhance broadband services. In 2005, it subsequently completed Setting the Context for a Federal-Provincial Broadband Strategy and a comprehensive survey of the province�s existing telecommunications infrastructure and data networks. These studies led to the development of Government�s Broadband Initiative (GBI), an action plan to consolidate the telecommunications requirements of publicly-owned facilities.

All Provincial Government departments, agencies, Crown corporations, boards, health care facilities, and post-secondary institutions were combined under the term Government Legislated Agencies (GLA). Each GLA entity was invited to provide input in the development of the new network.

Next steps included measures that could be employed immediately to increase the province�s telecommunications capacity.

Provincial funds were utilized to leverage more than $14 million in funding from the Federal Government�s Broadband for Rural and Northern Development (BRAND) program. Through this initiative 161 communities received commercial high-speed Internet access. The Provincial Government contributed $5 million towards a $30 million Centre for Distance Learning and Innovation (CDLI) initiative to connect 68 schools and 103 communities.

In November 2006, the Provincial Government announced a $15 million investment in the $52 million trans-gulf fibre optic network. This investment provided the province with its second network connection to mainland Canada. The second connection is an essential component in the implementation of GBI. It precipitated the RFP inviting telecommunications carriers to build and manage an advanced network for publicly-owned facilities.

GBI RFP

The RFP is open to telecommunications carriers with the capability of building and managing an advanced network for the Provincial Government. It is composed of three-sections � build-out, equipment acquisition/installation, and development and management of a new service management centre.

In the build-out stage, the successful proponent will build the network connecting all communities that a GLA presence. In making this connection, the proponent will be encouraged to provide additional capacity that will bring commercial services in each of the communities served.

The RFP requests proponents to provide equipment and management solutions to activate new and existing fibre strands. Any new component will have to meet operational requirements. It will have to be expandable, resilient and meet industry standards for telecommunications carriers.

The development of a service management centre that monitors the network in real time is central to ensuring that the network is performing at capacity. The successful proponent will be responsible for the management centre for a term expected to be 10 years, with a right to renew for an additional five years.

Once the successful proponent is identified, a detailed contract will be developed confirming network specifics.

Vision, Creativity and Innovation

The Provincial Government requires a contractor who has a vision, a strategy to fulfill that vision, and a team ensuring operational needs can be met while enhancing the province�s economic and investment potential.

Proponents will have to demonstrate the anticipated economic impacts in their proposal. All potential industrial offsets or economic benefits will be rated.

2007 12 13                                                    2:25 p.m.


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