Commonwealth of the Northern Mariana Islands. Wireless Broadband & Economic Recovery Project

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1 Commonwealth of the Northern Mariana Islands Wireless Broadband & Economic Recovery Project

2 Project with a Purpose The purpose of Docomo Pacific s project is to provide the CNMI with 3G high-speed wireless broadband services that will create jobs, provide benefits to education, healthcare, public safety and other community support organizations, and help stimulate the depressed economies of Saipan, Tinian and Rota.

3 A Supportive Government Strong support from the CNMI government; Office of the Governor House of Representatives Committee on Commerce and Tourism Department of Commerce Department of Public Health Commonwealth Development Authority State Board of Education Northern Marianas College

4 Dire Economic Picture The CNMI is in the grip of a severe economic depression, far more damaging than the recession affecting the fifty U. S. states - Gov. Benigno Fitial Projected revenues for fiscal year 2010 will represent a 35% decline over the last four years. CNMI risks losing up to 44% of its GDP, 60% of its jobs and 44% of real personal income by 2015.

5 The CNMI Community DPAC s project consists of three separate service areas Saipan, Tinian & Rota These areas qualify as rural and underserved A total of 14,054 households Saipan 12,507, Tinian 790, Rota 757 Estimated number of businesses 2,790 All will be passed by DPAC s proposed network.

6 Why a 3G Network? The Right Technology HSDPA HSDPA is the major route for future improvement GSM/WCDMA is the dominant technology worldwide 89.4% share of the worlds users User devices are more attractive, diversified and affordable LTE (4G) is the legitimate successor of GSM/WCDMA NTT Docomo, ATT, Verizon Wireless, China Mobile and Vodafone are developing this technology CDMA is a dying technology WiMax technology holds less than 1% of world users and is limited to certain regions in the world with limited or no interworking with deployed 2G and 3G networks.

7 The Wireless Evolution

8 Positive Impact on Telecom Industry DPAC s project will enhance the wireless playing field because it will; Introduce superior wireless broadband services with higher speeds at lower costs to the residents and businesses of the CNMI Increase return of investment for businesses as a result of lower cost efficiencies Eliminate the payment of HIGH rates for SLOW speeds

9 Lower the Cost of Doing Business A wireless broadband network on the islands of Saipan, Tinian, and Rota is needed as a key component in the efforts to revive the economy. Installation of a new switch in Saipan will result in significant cost efficiencies because it will eliminate large backhaul costs for traffic between Guam and the CNMI. Without the grant, it would not make good business sense for DPAC to invest so much capital in such a depressed economy. This is the CNMI s best opportunity to allow DPAC to build a world class network NOW when the economy needs it the most.

10 Job Creation DPAC estimates that its project will create or save hundreds of jobs in our community based on studies that have estimated job creation based upon the amount associated with the deployment of a broadband system. According to these studies, approximately 250,000 jobs are created in the general economy for every $5 billion invested in broadband deployment. See Broadband Investment Spurs Business Growth and Job Creation Douglas Streeks, BroadbandCensus.com July 23, 2009

11 Opportunities at Hand DPAC s project will provide wireless broadband access to public safety organizations, a number of educational institutions, the hospital on Saipan and community clinics on Tinian and Rota, the public library on Saipan and Tinian, and other community support organizations.

12 Affordability

13 Speed Test of 3G System on Guam

14 3G and the Private Sector The proposed network will give businesses the ability to send and receive large data files more quickly and efficiently Small businesses will able to capitalize on the availability of affordable high-speed broadband in order to establish and expand new products and services for online sales and other e-commerce opportunities Business owners will have the type of high-speed wireless broadband access that will allow for efficient day-to-day business functions. This new technology will greatly assist our ailing economy by generating additional tax revenue that will benefit the CNMI community as a whole as a result of smarter business practices.

15 3G and Public Health DPAC s high-speed wireless network will serve as a platform for delivering advanced medical and healthcare applications, thus helping to meet the medical needs of our CNMI residents. DPAC s high-speed system will enable applications such as telemedicine, high-speed Internet medical facilities and multimedia applications useful to our medical and public health communities. DPAC s wireless broadband service will allow our healthcare communities to operate at a level that not only meets the needs of our communities, but raises the standard of healthcare available to our residents.

16 3G and Education DPAC s network will enhance educational services by providing students with improved access to broadband services. DPAC s network will assist the NMC in establishing a distance learning program for students at the Tinian and Rota campuses. In addition, it will serve as the backbone of the NMC s and the Public School System s proposed computer labs. Mobile computing made possible by DPAC s 3G network will help take the learning experience outside the classroom and provide students with a broader learning environment.

17 3G and the Military Build-Up The proposed network will help prepare the CNMI to potentially benefit from the Department of Defense s plan to substantially build up the military presence in Guam. As Guam s close neighbor, the CNMI will potentially see ancillary economic benefits through the proposed build-up in Tinian, increased military ship visits and leisure travel from Guam from friends and family of the military community. DPAC s proposed network will upgrade the critical mobile broadband infrastructure in the CNMI and thereby help the CNMI prepare for this potential increase in economic demand.

18 3G and the Tourism Industry CNMI s ability to strengthen its position in tourism is a critical factor for the economic recovery. DPAC s proposed network will provide a solid foundation for the revival and growth of the important tourism industry in CNMI. The proposed network is based on the predominant global standard for 3G networks that will enable roaming with key economies worldwide. The proposed network will allow tourists from Japan, Korea, China, the Philippines and most of the EU markets to have seamless roaming coverage when visiting the CNMI, thereby enhancing our attractiveness not only as a tourist destination, but as a destination for the MICE market (Meetings, Incentives, Conventions and Exhibits)

19 Concrete Benefits DPAC s project will greatly improve the communications infrastructure and will aid efforts to diversify the economy. - Manuel Sablan, CDA Executive Director The availability of high-speed wireless network in the CNMI will save and create jobs in both the public and private sectors of our economy. A high-speed wireless network, when combined with other governmental and private sector initiatives will help rebuild the CNMI s economy.

20 Concrete Benefits Businesses, large and small will capitalize on opportunities, such as establishing and expanding online sales and promotions. The tourism industry will be able to engage in online promotions to reach a broader base of customers and market segments interested in traveling to the CNMI for conferences or just to relax on the beach. The network will provide a maximum speed of up to 7.2 Mbps and will enable access to applications that will benefit the CNMI economy and enhance the services of the island s healthcare, educational and public safety organizations.

21 A Quick Start The project is Shovel Ready. The project starts the day after the grant is awarded. Equipment, license, staff are in place.

22 3G Network Build-Out Timeline YEAR - 1 MILESTONE 1 ST QTR SCOPE OF WORK FOR THE PROJECT, RFP, CONTRACT AGREEMENT, NETWORK DESIGN, FCC.FAA APPLICATION FOR TOWER & MICROWAVE, NOC & SITE INPSECTION, PURCHASE ORDERS, SITE LEASE 2 ND QTR PROCUREMENT, SHIPMENT, INSIDE PLANT DEPLOYMENT, SITE PREPARATION, HW/SW UPGRADE FOR EXISTING NETWORK 3 RD QTR START INSIDE NEW SYSTEM DEPLOYMENT, START OUTSIDE EQUIPMENT DEPLOYMENT, NETWORK COMPLETION AND ACCEPTANCE TESTS 4 TH QTR NETWORK OPERATIONAL FOR FIRST 15 SITES PHASE 1, NETWORK OPTIMIZATION FOR THE PHASE 1 SITES, )-NETWORK OPERATIONAL FOR THE NEXT 5 SITES PHASE 2, NETWORK OPTIMIZATION FOR THE PHASE 2 SITES

23 The Path to the Future DPAC will be able to deploy the proposed network in the CNMI quickly and cost effectively. In addition, DPAC will be able to upgrade the HSDPA network to High Speed Packet Access (HSPA) and Evolved HSPA (also referred to as HSPA+), which will provide peak downlink speeds of 14 Mbps and 42 Mbps, respectively.

24 The 3G Network Infrastructure DPAC s project will expand an existing GSM/WCDMA network in order to make a 3G HSDPA 7.2 Mbps network available on Saipan and Tinian, and 3.6 Mbps network available on Rota. The system will operate using a 850 MHz band frequency. The project includes upgraded microwave backhaul facilities, and upgrades of several other facilities.

25 Saipan

26 Tinian

27 Rota

28 CNMI Investment Total investment $ 9,209, % DPAC investment $ 1,841, Stimulus Grant Funds $ 7,367,200.00

29 DPAC Commitment Adhere to the principles in the FCC s Internet Policy Statement Not favor or disfavor any lawful internet applications or content Display its network management policies on its website Ensure that the project connects to the public internet Offer interconnection to project facilities, where technically feasible Offer a much higher speed broadband infrastructure alternative to the CNMI residents at an affordable price.

30 DPAC s Proven Track Record DPAC has a proven track record as an innovative and successful wireless service provider, and the experience and accomplishments of its management team demonstrate that DPAC will continue to operate as a sustainable broadband service provider. The management team s stewardship has ensured that DPAC is financially sound, with strong revenue growth, and is committed to expanding the availability of advanced wireless technologies throughout the CNMI.

31 Professional Experience Team DPAC worked on the deployment of GSM in 2007 and 3G HSDPA network in 2008 Chief Technology Officer 21 years Director of Engineering 14 years Sr. Network Ops Manager 29 years Infrastructure Manager 10 years Network Ops Manager 20 years

32 Experience & Benefits The project is backed by NTT Docomo, one of the world's largest mobile communications operators and a premier provider of leading-edge mobile voice, data and multimedia services. DPAC successfully launched Guam s first island-wide WCDMA 3G network in WCDMA-HSDPA 3G network has wider worldwide adaptation. 4-times higher speeds at 75% cost savings than ADSL landline 25% discount to critical community & government facilities DPAC estimates the this project will create or save hundreds of jobs in the CNMI.

33 Sen Dangkulu na Si Yu os Ma ase Thank You Very Much

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