Inauguration Press Kit Critical Hub Networks PO Box San Juan, PR 00910

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1 Inauguration Press Kit Critical Hub Networks PO Box San Juan, PR 00910

2 1 Puerto Rico Bridge Initiative Broadband is one of the most transformative communications technologies in history. In just over a decade, broadband has completely changed commerce, public discourse, and how we interact with each other and the rest of the world. Broadband is no longer a luxury. Broadband is a necessity! All material in this document is, unless otherwise stated, property of Critical Hub Networks. Copyright and other intellectual property laws protect these materials, in whole or in part, in any manner, without the prior written consent of the copyright holder, are a violation of copyright law.

3 2 Table of Contents BACKGROUND/ SUMMARY OF THE PROJECT... 3 PROJECT CHALLENGES... 4 PROJECT GOALS... 6 PROJECT FACT SHEET... 7 PRBI SERVICES... 8 GOVERNANCE OF THE PROJECT PRESS MATERIALS Carlo Marazzi Corporate Biography PRBI Frequently Asked Questions PRBI System Design PRBI Inauguration Event Press Release Spanish version PRBI Inauguration Event Press Release English version The PRBI Story Why Should BTOP Funds be invested in the Puerto Rico Bridge Initiative

4 3 BACKGROUND/ SUMMARY OF THE PROJECT The Puerto Rico Bridge Initiative plans to provide fast, affordable broadband connectivity for last-mile Internet service providers and underserved areas of Puerto Rico, including the islands of Culebra and Vieques, by establishing a broadband bridge to the United States mainland and deploying a high-capacity middle-mile network on the islands. The project plans to purchase a 10 Gbps undersea fiber-optic cable directly connecting to Miami and deploy more than 180 miles of terrestrial middle-mile microwave network using 11 towers. The network will offer speeds from 100 Mbps to 1 Gbps to anchor institutions and last-mile providers. More than 1,700 community anchor institutions are expected to be directly connected, including more than 1,500 K-12 schools. PROJECT SCOPE The American Recovery & Reinvestment Act of 2009 (ARRA) was created to provide a direct fiscal boost to help lift our Nation from the greatest economic crisis in our lifetimes, and to lay the foundation for future growth. High-speed broadband access and connectivity are vital for economic growth, global competitiveness, education, innovation, and creativity. Recognizing the importance of broadband in the homes, $7.2 billion dollars was assigned to expand access and availability of broadband services throughout the nation. The Puerto Rico Bridge Initiative is a project conceived to help Puerto Rico meet this challenge. The Puerto Rico Bridge Initiative is a project being submitted for a federal grant award under the August 2009 US Department of Commerce NTIA Broadband Technology Opportunity Program (BTOP).

5 4 PROJECT CHALLENGES The nation's economy is facing an extraordinary crisis, unlike any since the Great Depression. The ARRA represents a strategic - and significant - investment in the future of the United States, including Puerto Rico. ARRA was designed to spur increased economic activity that will save and create more than one million jobs. Broadband networks are an increasingly integral part of the economy. As the technology evolves and bandwidth increases, the scope for broadband to act as an enabler of structural change in the economy expands as it affects an increasing number of sectors and activities. Direct effects result from investments in the technology and from rolling out the infrastructure. Indirect effects come from the impact of broadband on growth-driving factors, such as innovation, competition and globalization. Broadband facilitates the development of new inventions, new and improved goods and services, new processes, new business models, and it increases competitiveness and flexibility in the economy. The Puerto Rico Bridge Initiative is an unprecedented initiative aimed at harnessing the power of the Internet, to help solve our island's economic crisis. PRBI brings together Internet Service Providers, government and users in an innovative solution focused on solving the problems behind Puerto Rico's lagging broadband network. Speed Matters There is no doubt about it - speed matters. Speed defines what is possible on the Internet. It will define the economy and our way of life in the 21st century. The Communication Workers of America (CWA) has been inviting Internet users in the US& Puerto Rico to test their bandwidth speeds at This year the CWA published a report ranking the 50 states, Puerto Rico and the District of Columbia.

6 5 Puerto Rico's rank? 52 out of 52 Based on CWA's report, the national median download speed was 2.3 megabits per second. Puerto Rico's median download speed was 499 kilobits per second, or about 78% slower than the national median. The FCC defines basic broadband as "download speeds between 768Kbps and 1.5Mbps". Hence, Puerto Rico's median download speed means that residents of Puerto Rico do not even enjoy basic broadband speed. Can We Keep Up in the Broadband Race? In 2008, 60% of United States households had broadband Internet access, according to a report just released by Strategy Analytics. Puerto Rico is not included on this list, but a 2007 report from P. Budde Communications stated that only 10% of households in Puerto Rico had broadband Internet access. Closing The Digital Divide: To catch up, we need to close the Digital Divide - the gap between those who benefit from digital technology, and those who do not. Economic Divide: As Internet access becomes more expensive, those households with lower income levels are falling behind. In the United States, only 37% of households with annual income levels less than $30,000 have broadband. With Puerto Rico's median household income less than $18,000, most households cannot afford broadband. As a result, broadband penetration on the island is at extremely low levels. Geographic Divide: Universal access is a cornerstone of U.S. communications law. Yet, we're a long way from ensuring that all residents of Puerto Rico have access to telephone, television and cable tv services. Similarly, access to broadband services is not universal in Puerto Rico. Racial/Ethnic Divide: In the United States, less than 35% of Hispanic/Latino households subscribe to broadband Internet access, while 55% of non-hispanic white households are connected. Broadband can help to address many inequities that continue to pervade our nation - in our schools, our communities, our homes and our workplaces.

7 6 PROJECT GOALS Fast, Affordable Broadband Internet for All THE PUERTO RICO BRIDGE INITIATIVE (PRBI) WILL: Make broadband affordable for all Make broadband universally available Increase broadband speeds Reduce per megabit prices Mandate all PRBI ISP's to offer a 25% discount to schools, libraries, health care and public safety providers Provide peering to government agency public computer facilities, including the web sites of government agencies such as Hacienda, Department of Health and the Department of Education Help eliminate the digital divide, by encouraging the development of Public Computer Access & Training Centers in unserved and underserved communities Encourage competition and provide Puerto Ricans with a choice of broadband providers

8 7 PROJECT FACT SHEET

9 8 PRBI SERVICES The Puerto Rico Bridge Initiative (PRBI) is an unprecedented initiative aimed at harnessing the power of the Internet to help solve our island s economic crisis. PRBI brings together Broadband Service Providers, government, Community Anchor Institutions and users in an innovative solution focused on addressing the problems behind Puerto Rico s lagging broadband network. The service offering are as follow: Local Peering Local Peering was designed to improve on-island access to Puerto Rico s local Internet content and ensure the ongoing operations of intra-island Internet services in the event of an interruption in connectivity off-island. PRBI s Local Peering offers settlement-free interexchange of IP traffic between all PRBI-connected networks. International Peering International Peering offers settlement-free interexchange of IP traffic with Internet trafficgenerators and backbone carrier networks with connectivity at the NAP of the Americas in Miami, Florida. International Peering reduces the costs associated with IP transit for broadband providers while lowering traffic latency. Transport PRBI Transport provides Level 2 Ethernet connectivity from Puerto Rico to the NAP of the Americas in Miami, Florida.

10 9 GOVERNANCE OF THE PROJECT Governance of the project comes from the PRBI Steering Committee composed of local government, community anchor institution and non-profit representatives, and Broadband service provider representatives. All profits which are generated through the PRBI will be used to further the goals of the project, at the determination of the Steering Committee. Steering Committee: The Puerto Rico Bridge Initiative ( PRBI ) Steering Committee ( Steering Committee ) is established to provide governance and direction to Critical Hub Networks Board of Directors related to the Federally-Funded Puerto Rico Bridge Initiative Project, as set forth in this Steering Committee Charter ( Charter ). The Steering Committee is also established to provide a forum for facilitation of dispute resolution, to the extent agreed to by PRBI connected broadband service providers. The Steering Committee membership shall be composed of (2) representatives of government agencies and/or institutions; (2) representatives of community anchor institutions and/or nonprofit institutions which serve Puerto Rico, (3) broadband Internet Service Provider representatives, and (1) representative of Critical Hub Networks, Inc.

11 10 Press Materials Carlo Marazzi Corporate Biography PRBI Frequently Asked Questions PRBI System Design PRBI Inauguration Event Press Release Spanish version PRBI Inauguration Event Press Release English version

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