Oregon Broadband Advisory Council Meeting

October 21, 2020 Virtual Meeting

Attendance Members Present: Kurtis Danka, Miles Ellenby, Joseph Franell, Michael Heffner, Wade Holmes, Lonny Macy, Representative Pam Marsh, Galen McGill, Jeremy Pietzold, Cheri Rhinhart, Senator Arnie Roblan, Dave Sabala, Commissioner Mark Thompson, and Commissioner David Yamamoto.

Staff Present: Christopher Tamarin of Business Oregon

Guests: Cameron Camp of the American Leadership Forum–Broadband Workgroup, Barbara Cannady of Representative Mark Owens Office, Ayreanne Colombo of Columbia-Pacific Economic Development District, Steve Corbató of Link Oregon, Cynthia Gaffney – Digital Literacy and Broadband Access, Lori Gleichman of Jefferson County, Danielle Gonzales of Marion County, Scott France of SNG, Amanda Hoey of Oregon Wheat Commission, Jenna Jones of League of Oregon Cities, Ginny Lang of the Oregon Business Council, Kate Lasky of Josephine Community Library, Melissa Leoni of Legislative Policy and Research Office, Montana Lewellen of Oregon Cable Telecommunications Association, Mike McArthur of the American Leadership Forum–Broadband Workgroup, Paul Nolin of Calix, Commissioner Lianne Thompson of Clatsop County, Kelley Whitemore of the American Leadership Forum–Broadband Workgroup, and Paul Zolner of Business Oregon.

The meeting was called to order at 1:22 pm.

Welcome, Introductions Chair Joe Franell called the meeting to order and asked for guest introductions.

Minutes Jeremy Pietzold moved that the September 24, 2020 minutes be approved as distributed. Dave Sabala seconded the motion. The council approved the motion.

National Broadband Activity Updates Chris Tamarin reported on the following national broadband activity regarding infrastructure deployment, technology, market trends, public policy, and illustrations of the value of broadband adoption and utilization since the council’s last meeting.

Zoom Towns Many gateway communities are facing a new COVID dynanmic: a flood of remote workers fleeing big cities to ride out the pandemic, perhaps permanently. “Gateway communities,” are small towns near major public lands and ski resorts.

Like oil discovery led to western boomtowns, the pandemic has led to the rise of "Zoom Towns." Minutes "This trend called amenity migration, was already happening, but amenity migration into these communities has been accelerated and it can have destructive consequences if not planned for and managed. Many of these places are, as some people say, at risk of being loved to death," said Danya Rumore, in the Department of City & Metropolitan Planning at the University of Utah. The influx of remote workers could present economic development opportunities for gateway communities, but could also drive up housing prices and cost of living. Since the pandemic hit the U.S. Nearly 60% of employees are now working remotely full or part time, according to a recent Gallup poll. Nearly two-thirds of those employees who have been working remotely would like to continue to do so, according to that same poll. That would seemingly give workers a lot more flexibility going forward when it comes to where they call home. https://www.fastcompany.com/90564796/zoom-towns-are-exploding-in-the-west

AT&T DSL AT&T DSL service has come to an end. The company is no longer taking new orders for legacy DSL service, effective October 1. This move impacts legacy DSL service only, and not what AT&T labels IP DSL, or what used to be branded AT&T U-verse (now called AT&T Internet). AT&T alerted customers that effective October 1, 2020, AT&T will no longer accept new DSL orders and existing customers will no longer be able to make any speed changes to their service. AT&T DSL service is offered primarily in smaller, suburban and rural AT&T markets, although there are exceptions. AT&T has shifted its broadband focus to FTTP, and in AT&T’s rural markets, fixed wireless for last mile service delivery.

New AT&T customers living in those territories who want service from AT&T will have to choose fixed wireless if it is available. Otherwise, they will need to look elsewhere for internet service. The move is not surprising, as large carriers like AT&T and Verizon basically abandoned legacy DSL service years ago. They still offered it, but didn’t offer any innovation for it, offering slow speeds at high prices. Legacy DSL from large carriers has become the new dial-up.

That reality has led to significant growth in cable broadband, as DSL customers often turned to cable broadband for improved speeds and better performance. That cable broadband wave continues to today, with the cable industry seeing record net broadband growth recently. AT&T’s broadband future lies in FTTP, 4G and 5G. Much like Verizon did years ago, AT&T has shifted its wireline broadband strategy to growing its FTTP footprint. As of 2Q20, AT&T now counts 4.3 million FTTP connections. That compared with just 469K legacy DSL subscribers. AT&T has 9.1 million IP DSL subscribers, and 13.9 million total wireline broadband subscribers. https://www.telecompetitor.com/att-dsl-era-comes-to-an-end/

Wireless AT&T AT&T is giving its broadband subscribers a break on their data plans by waiving all overage charges until the end of the year, a three-month extension to a program started at the onset of the COVID-19 pandemic. The telecom also announced it will allow individual family members to select their own unlimited plans.

Verizon Verizon announced an expansion of its 4G LTE fixed wireless service, which targets rural markets. The service is now available in 189 markets across 48 states including Oregon.

Oregon Broadband Advisory Council Meeting, October 21, 2020, virtual on-line web-conference Page 2 of 9 Minutes The service offers 25 Mbps downstream service, but can peak up to 50 Mbps, according to Verizon. The service is offered as a self-install, using an all-in-one LTE-based home router and Wi-Fi gateway. Customers place the router wherever they have the best reception in the home. Pricing starts at $40/month for existing Verizon mobile wireless customers and rises to $60 for non- customers. There are no monthly data caps.

T-Mobile T-Mobile is seizing on AT&”T’s recent DSL move and has announced an expansion of its fixed wireless markets, bringing the service to 450 additional cities and towns. T-Mobile claims many of those markets are experiencing AT&T’s recent stoppage of new DSL orders, giving impacted subscribers a new option for home broadband. T-Mobile says this fixed wireless markets expansion will reach 20 million people.

T-Mobile Home Internet uses 4G LTE-based fixed wireless service to deliver average speeds of 50 Mbps for $50 per month. There are no data caps for the service and T-Mobile says there are no equipment fees for the self-installed service either. https://www.telecompetitor.com/t-mobile-seizes-on-att-dsl-stoppage-with-fixed-wireless- markets-expansion/

Charter , Inc. announced the launch of Wireless Internet service as a Backup for Spectrum Business customers throughout the company’s 41-state footprint. Designed to enhance and protect internet service for small- and medium-sized businesses, Wireless Internet Backup helps businesses stay connected in the event of failures in the wireline network. Available as an add-on service for all standard Spectrum Business Internet speeds, Wireless Internet Backup provides a redundant 4G LTE connection. In the event of a wireline network disruption, the system automatically activates to deliver a wireless connection with unlimited data, allowing businesses to maintain use of critical devices, such as point-of-sale systems and other necessary applications. https://www.telecompetitor.com/charter-launches-wireless-internet-backup-for-spectrum- business-customers/

Telemedicine The number of in-office visits to primary care physicians in the United States were 50% lower in the spring compared with the same periods in 2018 and 2019, a study published Friday by JAMA Network Open found.

At the same time, more than 35 million telemedicine consultations -- in which patients communicate with their doctors by phone or online -- were held in April, May and June, 2020, a 3,000 percent increase over previous years, the data showed. In the second quarter of this year -- April, May and June -- telemedicine consultations, which accounted for approximately 1% -- or about 1.4 million per quarter -- of all primary care appointments in 2018 and 2019, increased to just over 4 million visits. https://www.upi.com/Health_News/2020/10/02/Rates-of-key-tests-drop-with-fewer-doctor-visits- more-telemedicine-amid-COVID-19/9521601645019/

Oregon Broadband Advisory Council Meeting, October 21, 2020, virtual on-line web-conference Page 3 of 9 Minutes is Moving Toward 10 Gig Comcast says that it has achieved symmetrical 1.25 Gbps transmission on a live production network in Florida and that the test is a milestone in the journey to 10 Gig speeds. In the coming weeks it will expand the project to test performance in different home and network environments. Being able to reach such speeds without extensive physical changes to the existing network offers significant savings and quicker time to market with new services. https://www.telecompetitor.com/comcast-tests-symmetrical-1-25-gbps-in-move-toward-10g/

Farm of the Future Trial Trilogy Networks and the Rural Cloud Initiative (RCI) have completed Phase 1 of its first Farm of the Future deployment in Westboro, Missouri. This first phase consists of the Trilogy nationwide LinX Network and the ConEx regional edge cloud platform hosting real-time Internet of Things (IoT) services delivered over a private LTE network to the Hurst Greenery. This pilot is to prove out the Trilogy architecture and, as it moves into production later this year, will power a variety of advanced precision agriculture applications, that use network connected sensors, monitoring devices, satellite mapping solutions, drones and robots.

“This first phase of the Farm of the Future project will result in a 10 percent increase in efficiency and profit, allowing for increases in yields and cost savings,” said Blake Hurst, owner of Hurst Greenery, and president of the Missouri Farm Bureau. These applications deployed at the edge of the network are to give Hurst Greenery – as well as potentially another 2,300 farms in a two-state area – the ability to increase their operational efficiency, reduce operating costs, and use increased automation to monitor and control crops and environmental systems.

Electric Cooperatives This month, Calix announced a formal partnership with full-service broadband consulting firm focused on Electric Cooperatives, Conexon, which it has named an Elite Consulting Engineering Partner. The terms of the relationship provide Conexon customers access to the entire Calix product portfolio—both Revenue EDGE and Intelligent Access EDGE solutions, along with the full set of Calix Services—which means electric cooperatives that work with Conexon can also leverage Calix solutions to build future-proof networks that will help their communities thrive for decades to come. Currently more than a quarter of the 800-plus electric cooperatives serving rural areas are deploying broadband services, and the federal government has made billions of dollars available to fund rural deployment projects. However, the process to secure funding is lengthy and complicated; and the actual deployment requires the technology and expertise to build fiber networks and deliver subscriber experiences that can succeed in rural environments. https://www.telecompetitor.com/calix-and-conexon-partner-on-electric-cooperatives/ Press Release: https://www.businesswire.com/news/home/20201009005073/en

Changing Patterns of Use Cable, satellite and telecom video providers can expect to see total industry revenues drop off significantly over the next five years. According to a new report from Digital TV Research, global pay TV revenues will fall by $56 billion by 2025, down from a peak $202 billion in 2016 as users migrate to streaming services.

Oregon Broadband Advisory Council Meeting, October 21, 2020, virtual on-line web-conference Page 4 of 9 Minutes However, Digital TV Research said all hope is not lost for global pay TV. “Despite poor results, there is still plenty of life left in pay TV. Digital TV Research forecasts 34 million additional pay TV subscribers between 2019 and 2025,” to a total of 1.06 billion by 2025.

The firm said China will account for one third of the world’s pay TV subscribers, with 328 million expected by end-2025. India will account for another 183 million, meaning that China and India will together account for half the world’s pay TV subscribers by 2025.

Department of Defense Proposes a new 5G network According to a report published by the Wall Street Journal on Friday, the DOD is considering the possibility of building and leasing service on a government 5G network to carriers and enterprises. The DOD is considering using a bid process to select a company to build the government 5G network – a process that the government used previously when it selected AT&T to build the FirstNet nationwide mobile broadband network to support public safety users.

Seven associations representing communications service providers have written a letter to President Trump urging him not to pursue the idea of a U.S. government 5G network using DoD spectrum. The letter came in response to a request for information about such a network issued by the Department of Defense.

Signing the letter were representatives from CTIA—The Wireless Association, the Competitive Carriers Association, NCTA—The Internet & Television Association, the National Rural Electric Cooperative Association (NRECA), NTCA—The Rural Broadband Association, USTelecom—The Broadband Association and The Wireless Infrastructure Association (WIA).

A nationalized 5G network “would be at odds with more than a century of private sector led innovation and investment in communications networks, have a chilling effect on the entire broadband sector, and jeopardize American leadership in the global digital economy,” the letter said.

This isn’t the first time a U.S. government 5G network has been proposed. In 2018, a national security council official reportedly circulated a proposal for such a network to other government agencies. https://www.telecompetitor.com/service-provider-groups-ask-trump-to-scrap-u-s- government-5g-network-idea/

Cyber Security State Agencies are battling a Large Phishing Campaign that has infiltrated multiple state government agencies. A hacker group apparently deployed various forms of malware via phishing messages disguised as "legitimate email from state agencies, financial institutions and other people and organizations." phishing campaign tries to trick state employees into downloading malware or provide account credentials.

Governor Inslee has activated the state's Emergency Operations Center, responsible for coordinating with state, local, federal and private stakeholders to effectively respond to public emergencies to help deal with the problem.

Oregon Broadband Advisory Council Meeting, October 21, 2020, virtual on-line web-conference Page 5 of 9 Minutes With the attack occurring so close to the upcoming U.S. presidential election, it seems a natural concern that the campaign may have been aimed at disabling electoral processes, but officials say election systems are unaffected. https://www.govtech.com/security/Washington-State-Agencies- Battle-Large-Phishing- Campaign.html?utm_term=READ%20MORE&utm_campaign=Washington%20State%20Agencies%2 0Battle%20Large%20Phishing%20Campaign&utm_content=email&utm_source=Act- On+Software&utm_medium=email

US Ignite Call for Proposals US Ignite has issued a call for proposals to participate in its OVERCOME Project to connect the unconnected. Responding communities are asked to propose their team members, identify unserved and/or underserved area(s) they will connect, and recommend specific technologies to be used for broadband delivery. US Ignite will select and fund five proposals, oversee broadband deployment efforts, provide national publicity for the effort, and charter leading faculty to measure the project’s technical and social effects.

Anticipated Funding Amount: Up to $300,000 in cash per award from the National Science Foundation targeting a 12-month performance period between March 1, 2021, and February 28, 2022. Eligible Applicant include nonprofit organizations, state, local and municipal governments, community-owned utilities, research labs, foundations, economic development organizations, community-serving organizations, tribal organizations, research and startup incubators, professional societies, school districts, anchor institutions, healthcare organizations, two and four- year Institutions of Higher Education. Proposals are due on January 8, 2021.

State Broadband Activity Updates Chris Tamarin reported the following state broadband activity regarding infrastructure deployment, technology, market trends, public policy, and illustrations of the value of broadband adoption and utilization since the council’s last meeting.

Douglas Services Inc. (D/b/a Douglas Fast Net) Acquires Comspan Communications, Inc. The acquisition of Comspan’s assets by DFN results in a locally owned, high capacity and fully integrated fiber-optic cable network throughout Douglas and Coos Counties. All local jobs will be preserved. Mark Scully, president and representative of Comspan’s shareholder, Telco Investment Group, Inc., stated, “This transaction is the next logical chapter for both companies since it maintains local control, local investment and local employment of important communications infrastructure in these more rural areas of Oregon. We are also very fortunate that this transaction resists the trend where local utilities are merged into national carriers that have limited interactions or strategic involvement with our communities.”

Comspan commenced business in Roseburg in 1997 after the passage of the Telecom Act of 1996 that created competition in local communications markets. Comspan built its first network in the city of Roseburg, then expanded by constructing over seventy miles of fiber-optic cable infrastructure in the then underserved cities of Bandon, Coquille, Myrtle Point and Reedsport.

DFN was launched in 2001 by its sole shareholder and local electric utility, Douglas Electric Cooperative, as a competitive local exchange carrier providing voice and data services in Douglas, Coos and Lane Counties. Douglas Electric Cooperative is a 501(c)(12) non-profit member-owned

Oregon Broadband Advisory Council Meeting, October 21, 2020, virtual on-line web-conference Page 6 of 9 Minutes cooperative providing electrical power distribution with extensive coverage in rural areas of Douglas County. https://southernoregonbusiness.com/douglas-services-inc-d-b-a-douglas-fast- net-to-acquire-comspan-communications-inc/

InstarAGF Asset Management Inc.acquires LS Networks This month, InstarAGF Asset Management Inc. (“InstarAGF”), announced it has entered into an agreement to acquire 100% of LS Networks, a fiber-optic bandwidth infrastructure services provider in the Pacific Northwest, from a collective of Oregon rural electric cooperatives. The Company’s current management team will continue to lead the business, which will remain headquartered in Portland. The transaction is expected to close in early 2021.

Multnomah County A Multnomah County study found that a publicly financed fiber network spanning Multnomah County would cost $1 billion. The county-sponsored study sought to quantify gaps in broadband service across the county and identify possible ways to close those divides.

The study concluded a countywide network could pay for itself if enough customers sign up, but warned of considerable financial risk if subscriber numbers don’t meet targets. The study also found that smaller, more targeted networks would be far less expensive but would be less efficient – and likely would require significant government subsidies.

Multnomah County commissioned its study last year, splitting the cost with Gresham, Portland, Wood Village, Troutdale and Fairview. Its findings were no surprise: Portland once contemplated a citywide fiber network but abandoned the notion when its own 2007 study pegged the total cost at $500 million. The new study issued this month, from consultant CTC Technology & Energy, found Internet service is nearly universal throughout Multnomah County. Ninety-six percent of homes have some form of home Internet access. https://www.governing.com/finance/Oregon-County-Estimates-Public-Internet-Would-Cost-1- Billion.html

ReConnect Grant This month, the U. S. Department of Agriculture (USDA) announced $43.2 million in grants and loans to provide broadband service in unserved and underserved rural areas in Idaho, Oregon and Nevada. Oregon-Idaho Utilities Inc. will use a $12.8 million ReConnect grant to deploy a fiber-to- the-premises network to connect 612 people, 75 farms and three businesses to high-speed broadband internet in Owyhee County, Idaho; Malheur County, Oregon; and Humboldt and Elko counties in Nevada.

Presentations American Leadership Forum - Broadband Workgroup Mike McArthur briefed the Council on the work of the American Leadership Forum (ALF) of Oregon, a non-profit, non-partisan organization that brings a diverse range of corporate, public and non-profit leaders together to build effective networks of collaboration, service and community throughout the state http://www.alforegon.org/. One of the complex community and statewide issues ALF has taken on is Broadband as it relates to changing demographics demonstrated through growing urban centers and declining rural populations.

Oregon Broadband Advisory Council Meeting, October 21, 2020, virtual on-line web-conference Page 7 of 9 Minutes Lack of access to broadband impacts economic growth, educational opportunities, healthcare access, communities' ability to connect with one another as well as to connect with opportunities outside of their region. ALF believes that a priority is the need to help broadband expansion where needed. Whether across the state or in a specific region and speed the process in some way as part of a larger Urban Rural Connection Project.

Mike shared a digital inclusion outreach video as a work in progress produced to address the issue and asked for the Council’s feedback https://youtu.be/F5wdOLuJIRg. Council members provided comments and suggestions.

Oregon Business Council – Pandemic Response Ginny Lang provided the Council with a briefing on the work of the Oregon Business Council to increase student broadband access through public-private partnerships. The work has been supported by TDS telecom, Ziply Fiber, Oregon Business & Industry, , CenturyLink, Comcast, Oregon Cable Telecommunications Association and the Oregon Telecommunications Association.

The Oregon Business Council has been working to connect and coordinate private sector and public sector resources to help connect Oregon’s students during the pandemic public health emergency. Public and private sector broadband service providers have worked together to connect students who lacked the access needed for distance learning through  Early implementation of programs to aid low-income families deal with distance learning challenges.  Sponsoring service agreements with schools to identify student with unmet connection needs and finding solutions and financial support  Expanding state and federal programs like Oregon Technology Access Program and Lifeline to directly pay for broadband services for low-income students  CARES Act relief funding for the Oregon Department of Education’s Comprehensive Distance Learning Grant Program providing funding to all Oregon school districts.

Despite the work, there are still many students unable to access distance learning due to lack of broadband internet access.  Broadband service is unavailable.  Lack of knowledge about available and free services.  Not all school districts have the capacity to connect students  Time is a challenge for the emergency response. Broadband infrastructure projects take time and supply chain problems exist during the pandemic.  The devastation caused by Oregon’s wildfires have further complicated the challenge.

Oregon has again demonstrated its collaborative nature in the face of adversity and community need.

Work Session Broadband in Oregon 2020 report The report of the Oregon Broadband Advisory Council (OBAC) to the Legislative Assembly on the affordability and accessibility of broadband technology in all areas of the state, and on broadband technology use in healthcare, energy management, education and government, and on the role of

Oregon Broadband Advisory Council Meeting, October 21, 2020, virtual on-line web-conference Page 8 of 9 Minutes broadband in local, regional and state economies, economic development, public policy issues, and key broadband related challenges and opportunities and facing the state.

The working draft of the 2020 report was discussed. Chris Tamarin noted that yet another dynamic in this pandemic year, is that Broadband has become its own advocate. The Digital Divide has gained almost universal recognition as all sectors of the economy rely implement distancing measures. You know that your message has been received when that message starts coming back at you from others. The acknowledgement that broadband is essential infrastructure and service, and that the need to address the digital divide including digital literacy, equity and inclusion is coming from all directions.

The report is due on November 1, 2020.

Public Questions / Comments Danielle Gonzales of Marion County provided an update on the Ziply Fiber infrastructure in the Santiam Canyon with fiber builds in Detroit and Idanha. The area suffered catastrophic damage from the wildfires including the loss of the Ziply Fiber Detroit Central Office. Broadband infrastructure will be essential for the recovery of these communities.

Steve Corbató provided an update on Link Oregon’s expansion project extending middle mile network rings, extending higher capacity Internet transit and Ethernet transport services to public and non-profit entities in Eastern and Southern Oregon to build public and non-profit sector networks

Meeting Schedule The October 21, 2020 meeting of the Oregon Broadband Advisory Council was held as a virtual on- line web-conference. The next meeting of the council will be held on November 19, 2020 as a virtual on-line web-conference. Meeting information will be posted on the council website.

The meeting adjourned at 3:35 pm.

Approved by:

___Signature on file______November 19, 2020 Joseph Franell, Chair Date Oregon Broadband Advisory Council

__ Signature on file ______November 19, 2020 Christopher Tamarin Date Business Oregon

Oregon Broadband Advisory Council Meeting, October 21, 2020, virtual on-line web-conference Page 9 of 9