RD408 - Feasibility Assessment of a Broadband Network in the Hampton Roads Region (Planning District II) - November 17, 2008


Executive Summary:
Item 106 C of the 2008 Appropriations Act requested the Secretary of Commerce and Trade to report to the Chairmen of the House Appropriations and Senate Finance Committees on work undertaken to support high speed broadband deployment in the Hampton Roads Region. The primary focus of this report comprises a feasibility assessment of the implementation of a broadband infrastructure meeting certain technical and service specifications. The assessment included an estimate of the full cost of such a project and the availability of funding from various sources to implement the project.

Recent Broadband Development Efforts

Within the Commerce and Trade Secretariat, the Department of Housing and Community Development (DHCD) has played a lead role in helping the leaders of rural communities recognize the importance of high-speed, affordable telecommunications to the economic vitality and sustainability of their communities. DHCD has also developed solutions bringing increased access to underserved areas, partnering with local governments to expand the availability of broadband in rural Virginia through the investment of Community Development Block Grant, Appalachian Regional Commission and state General Funds.

Community telecommunications planning efforts have been at the heart of the expansion of broadband availability. These have initiated approximately 24 projects covering more than 36 localities (some localities have partnered to develop regional plans) since 2006. These planning initiatives are necessary first steps for communities seeking to fill a gap not addressed by the private market. Since 2006, DHCD has coupled $1 million in state funds with just over $300,000 in Virginia Community Development Block Grants and nearly $150,000 in local funds to sustain this initiative delivering robust, quality, reliable, and affordable high-speed broadband service.

The results of this effort can be seen in the transformation occurring on the Eastern Shore. The community telecommunications planning experience led Accomack and Northampton Counties to join in forming a wireless broadband authority that will be the owner and management agent for the backbone and last mile networks on the Shore. Starting with $3 million in state funds, the Shore has been able to leverage a tremendous amount of assistance in the form of $2.3 million from the U.S. Economic Development Administration, $1.8 million through a Congressional earmark, over $1 million in Virginia Community Development Block Grant funding, and nearly $300,000 in local funds from both counties. The 60+ mile backbone will tie-in to nodes in the Virginia Beach area and the northern part of Accomack County (Wallops Island). Community networks (Last Mile) will be rolled out to deliver high-speed broadband as called for by the telecom planning efforts. At present, spurs for the Towns of Cape Charles and Parksley are under design, while other distribution networks are being planned.

The installation of high-speed telecommunications is also expected to leverage a significant amount of private investment as industries with significant telecommunications needs are currently expanding or locating on the Shore. The availability of broadband is critical to their continued operations and will also help recruit future investment around Wallops and throughout the Shore.

The Hampton Roads Broadband Feasibility Assessment

Icon Broadband Technologies and Consulting Gateway Corporation prepared the feasibility assessment in conjunction with DHCD. The consultants noted that the envisioned network was intended to fulfill regional development goals by creating a cohesive, redundant and secure open access network within the region. The report estimated the cost for a strategically located, first-phase, 86-mile fiber network as ranging from $6-$11 million depending on decisions about underground or aerial placement, co-location, and other factors. Backbone electronics could add between $1-2 million to the project depending on the architecture selected.

The report noted the overwhelming importance of the availability of adequate telecommunications and broadband service to the successful pursuit of economic development in rural areas of the Commonwealth. While the authors acknowledge the distinctions between rural areas and the more urban setting of the Hampton Roads region, they observed that a feasibility assessment must consider the intended purpose of the network. In this instance, they concluded that if the purpose of the network is to provide economic development tools to the more rural portions of the region as well as redundancy for the Eastern Shore network and the planned Middle Peninsula and Northern Neck networks, then interconnection makes sense. The authors recommended a number of steps that interested parties could undertake to advance development of the proposed fiber optic backbone main network.