Arizona cOMMERCE AUTHORITY grant application...Since Verizon Wireless launched 5G wireless service this year, the rapid expansion of the Internet of Things (IoT) over the past five

Global Communication Services KONNECT AZ NETWORK

Arizona Rural Broadband Development Grant (RBDG) – A

C. PROJECT NARRATIVE

Company Background

Incorporated in Arizona in 1999 GCS is an industry recognized Telecommunications Consulting and Project Management Company which has a 20 year track record of delivering SUCCESS in the Design, Management and Integration of High Speed Communication Networks and Facilities. Network Proficiencies: Copper, Fiber, Satellite, Cellular, Microwave, Wi-Fi, WiMAX, 2G, 3G, 4G, 5G, LTE, Broadband over Powerline (BPL). ATM, SONET, SDH, MPLS, WWAN, WAN, LAN, Metro Mesh, Municipal Networks. Technology Partners: ADC, Advent, Alcatel, Cisco, Ericsson, IDC, Intel, Juniper, Microsoft, Motorola, Liebert, Linksys, Lucent, Qualcomm. Most major Telco’s, ILEC’s and CLEC’s. Continuously learning and adapting over the past 20 years GCS and its executives have developed a very distinct understanding of project management as it applies to IT and telecommunications projects. Notably without proper project management stakeholders suffer from unrealistic expectations, high risk, and poor quality deliverables, often resulting in projects going over budget, delivered late or not at all With proper project management GCS creates and enables happy, motivated teams, contractors and workers who know their work matters, do their best work, and the right stuff is delivered; stuff that delivers real return on investment to the stakeholders. GCS Project Management consist of five (5) distinct Phases:

1. Initiation 2. Planning, 3. Executing / Implementation 4. Monitoring & Controlling 5. Adapting & Closure

The Rural Broadband project encompassing the Rim Country was first introduced by GCS back in 2012 when GCS unveiled its plans for constructing a new terrestrial high speed fiber optic network (KONNECT AZ) to the Arizona Strategic Enterprise Technology Office, the Digital Arizona Council (DAC) as well as the towns of Payson, Star Valley, Pine and Strawberry.



To ensure the project’s success GCS along with its attorney Michael Keeling did significant work to see State Bill 1402 (SB1402) passed. With the passing of SB1402 in 2012 the Arizona Department of Transportation can allow for conduit trenching along state highways and roads. This allowed private service providers will lay the conduit and pull the fiber. Unfortunately with the failure of State Bill 1403 (SB1403) which provided funding and administration to the State of Arizona Right of Way Bill the entire plan came to a standstill Over the past 7 years GCS has updated its plans from digging and trenching a terrestrial fiber optic path to purchasing a (20) year Indefeasible Right of Use (IRU) on the aerial (dark fiber) OPGW network being constructed by the Arizona Public Service (APS) Company to connect its energy substations in NE Arizona. An Optical Fiber Composite Overhead Ground Wire (OPGW) is a type of cable that is used in overhead power lines. Such cable combines the functions of grounding and communications.

An OPGW cable contains a tubular structure with one or more optical fibers in it, surrounded by layers of steel and aluminum wire. This new 65 mile aerial fiber optic cable being installed by APS between their Payson substation and their Pinnacle Peak substation is expected to be completed by APS by December 31st 2020. A significant amount of time and money was invested in 2011-

2014 by the project stakeholders in the planning stages of the project and in trying to obtain the lease from ADOT to construct a terrestrial network along Hwy 87 from Fountain Hills to Payson. Not to mention the endorsing, lobbying and the passing of SB1402 or the development of the Digital Arizona Tactical Model. Now with the new OPGW being installed by APS there is an opportunity to complete the KONNECT AZ Rural Broadband project realizing a significant installation cost savings which ultimately can be passed on to GCS clients.

Since the inception of the KONNECT AZ and the formation of the GCS subsidiary Konnect, LLC to fund the project the focus has always been to provide Rural Broadband solutions to NE Arizona. The scope of the project has not changed however the most important factor now at hand is providing network REDUNDANCY to our strategic network partners Centurylink, Suddenlink as well as Verizon which combined serves 95% of the communications and internet services to Payson, Star Valley, the local Tonto / Apache tribe and surrounding Rim Country communities Presently the majority of businesses as well as residential customers have access to or are connected to broadband services that are on par with those found in most tier one urban markets. In fact a 25mb / 3mb connection is a standard offering from Suddenlink (a division of Altice US)



The addition of the KONNECT mission critical REDUNDANT network will solve the existing problem which is centered on unforeseen network outages effecting the businesses and residents of Gisela, Payson, Pine, Rye, Strawberry, Star Valley, The Tonto Apache Tribe along with several other undeserved rural Arizona communities. GCS identified and presented the need for the new mission critical Rural Broadband network connecting Phoenix to Payson back in 2012 and was at that time ignored. Today as previously anticipated by the GCS executives the entire Rim Country has been experiencing serious service outages on the existing antiquated network over the past several years with the most recent being November 2nd 2019. While other companies will tell the ACA and Rim Country businesses and residents what they want to hear all the time using a bunch of smoke and mirrors to hide their hidden agenda’s GCS is providing 100% transparency. NO other proposal provide the REDUNDANCY to the Rim Country nor are their distributive networks in place. The KONNECT project defined by GCS in conjunction with its strategic partners is not deceptive nor disruptive and provides the necessary mission critical REDUNDANT network architecture to the region. Additionally, there is commercial development / new retail shopping center being planned in Payson that encompasses approximately 80 acres. The PM and Developer of that project has met with our team and will only proceed forward if the GCS / KONNECT high speed, REDUNDANT network is in place. The PM clearly stated that the retail anchor tenants cannot risk the loss in sales resulting from the internet network outages that currently plague the Town of Payson. The GCS / KONNECT high speed fiber optic network build will be the final piece in the puzzle that will provide the required REDUNDANCY to enable that project to succeed. Furthermore, it is not simply about REDUNDACY but also network CAPACITY. Since Verizon Wireless launched 5G wireless service this year, the rapid expansion of the Internet of Things (IoT) over the past five years as well as new subscriber and throughput considerations for both fixed and mobile wireless technology the underlying network CAPACITY planning takes on a whole new dimension. Taking into consideration the expansion of 6,000 students, workers or residents in any area then it’s not simply a cell phone or residential connection anymore it’s 10x the requirement for those new users as well as everything connected around them which places tremendous additional stress on any network. The new GCS network operating under a network Service Level Agreement (SLA) the ability to expand the network CAPACITY at any time based on demand. The network CAPACITY and throughput can be increased from 10GB to 100GB in seventy two (72) hours or less and would be able to expand in the future up to 9.6 TERABYTES.



The development of the proposed university site in Payson by the MHA coupled with the 80 acre retail outlet project as well as the stimulation of local businesses will result in an economic impact of more than annually for the Rim Country towns and communities. While other proposals and grant applicants are seeking funding NONE of them provide the REDUNDACY or CAPACITY required to provide “mission critical” solutions offered by GCS and the KONNECT AZ network Broadband in Rural Communities Over the past decade there have been multiple notable studies and reports which highlight the significant contribution high speed broadband plays in rural development. Governor Ducey and his team by creating a new Arizona Statewide Broadband Strategic Plan and empowering the ACA staff to offer funding in the form of grant monies clearly recognizes the critical role of Rural Broadband. D Project Description and Timeline – Infrastructure Matters Nature and Improvements GCS is moving past the planning stage and has begun work on the KONNECT high speed all fiber optic network to serve the Rim Country communities and Tonto-Apache Reservation. Moving forward with the KONNECT project GCS has entered into a Lease with Option to Purchase Agreement for the building located at 704 S. Meadow Street, Payson AZ. This newly acquired location shares the west boundary with its strategic partner and Incumbent Local Exchange Carrier (ILEC) Centurylink.



Improvements to the facility have begun and representatives from APS, Suddenlink, The Town of Payson and the Rim Country Broadband technical team have been by to see the project under way.

Once the improvements have been completed the Customer Support and Network Operations Center (NOC) will monitor the network

New network

Monitoring & Security

Workstations

Equipment Cabinets, Cooling and Uninterruptable Power Supply



Network Performance Initially the new fiber optic network serving Rim Country will consist of (2) pair of optical fibers. One pair will live while the second pair acts as a hot standby. Each pair will be capable of providing symmetrical speeds of 10 GB. The advantages of dedicated bandwidth (Constant Bit Rate) as opposed to burstable bandwidth is that it provides symmetrical upload and download speeds at all times.

Why the project is needed: It is well known that the availability of broadband in smaller communities is critical to their economic growth. The Rim Country communities have ample amenities for towns of their size, however the existing decaying network lacks REDUNDANCY. The current technology and bandwidth offered in Payson is provided using facilities that are decades old and currently unable to deliver adequate bandwidth, with deficiencies in upload speeds as well as mission critical reliability. Bringing the new high speed fiber optic network: Payson’s economic growth are capped by today’s limited broadband capability. Payson will benefit from the project in the following areas:

• Business • Educational • Medical • Municipal

How the proposed project addresses those needs: The proposed KONNECT architecture at the budgetary numbers contemplated will be able to provide the mission critical REDUNDANCY required to solve the existing decaying network and outage problems. In addition to REDUNDANCY the additional CAPACITY, throughput and speeds offered by our strategic partners will allow a new level of online productivity to the existing businesses and employees (present and future). GCS has listened to Payson’s leadership in creating a plan for long term growth and expansion. The new mission critical REDUNDANT network will provide service to both established and planned schools, business and residential clients, public and municipal facilities as well as to the Tonto /Apache Tribe.



Number of households served: Based on the most recent census bureau report the number of households with a broadband internet subscription in the area is 78%. The new KONNECT network is expected to provide REDUNDANCY to 80% of this population. 10% have satellite or with a 12% poverty rate no connection at all Number of businesses served: Currently there are approximately 3,000 businesses registered in Payson alone. This number does not take into account Home Occupation Businesses, self-employed or sole proprietorships. The majority of these businesses have an internet connection with one or more of our strategic network partner’s. We anticipate that 90% (2,700) of these will realize the benefits of the new KONNECT mission critical REDUNDANT high speed broadband service

Number of community anchor institutions served: GCS along with its strategic network partners Centurylink and Suddenlink will be able to serve all of the large Educational, Financial, Governmental, and Medical institutions in the Rim Country area. In providing the REDUNDANCY solution the new KONNECT network is expected to cover 95% of these institutions in the Rim Country area Total population served: The estimated Rim Country population including the surrounding area exceeds 25,000. This takes into consideration the population of Payson and Star Valley which is approximately 18,000 residents along with the members of the Tonto Apache Tribe residing on the reservation currently estimated at 145 individuals. The new KONNECT mission critical, high speed, fiber optic network in conjunction with its strategic network partners is projected to provide REDUNDANCY to more than 60% of the total population or approximately 15,000 residents Total miles of fiber to be installed According to design specifications there will 65 miles of aerial fiber mounted on high voltage utility poles provided by Arizona Public Service (APS) Company. That is to be considered the “Middle Mile” portion of the network In addition to the Middle Mile aerial segment there will be two (2) local loops installed:

1. The first fiber loop on the Payson side of the network will be approximately (1.3) miles to the facility located at 704 S Meadow and which shares the west border with one of our strategic partners

2. The second local loop on the Phoenix end will be approximately 6.8 mile connecting the APS Pinnacle Peak substation to the GCS Tier 4 Data Center in Scottsdale



This combination of middle mile and last mile connections result in approximately (73) miles of fiber optic network being installed to meet the needs for REDUNDANCY. In addition to REDUNDANCY and CAPACITY the LATENCY for the new network will be approximately 10ms which is a 3x improvement over existing legacy systems Location of new fiber Approximately 73 miles from Scottsdale AZ to Payson AZ Stated commitment to operate and maintain the network: GCS (or its assigns) is committed to operate and maintain this network beyond five (5) years as demonstrated by entering into a twenty (20) year IRU with APS.

Reference Appendix E for a letter of commitment from GCS, which intends to demonstrate GCS’s long-term commitment to the small or rural communities in Arizona.

The party or parties that will perform the infrastructure construction: At this time APS has not disclosed the construction company or contractors that are completing the . GCS’s standard operating procedure is to distribute a request for proposal (RFP) to at least three (3) approved vendors in order to get the best bid possible. Bid requirements are not only price, but also an assurance of quality, construction timeline requirements, and financial wherewithal to complete a project of this size. The construction will be monitored and supervised by our experienced internal construction management team to ensure continued adherence. The intended uses of the RBDG A funds: Reference Appendix A for a breakdown of both eligible and ineligible costs for the planned network. Overall, there are several broad eligible funding categories. These include construction labor, construction materials, a precast building to house network electronics, and network electronics.



Specific information required under Section 1.4: The new HYBRID fiber optic network architecture will provide a minimum service of 10 GB symmetrical and up to 1 GB to underserved businesses in the community. This is competitive to most major urban markets in in Arizona In addition GCS along with its strategic partners will be able to provide dedicated network services to enterprise customers up to 10 Gig based on their requirements. The construction of the network will be completed well within the (24) month time frame allotted under the grant Fiber optics uses light signals to transmit data. As this data moves across a fiber, there needs to be a way to separate it so that it arrives to the proper destination. There are two (2) important widely recognized types of systems that make fiber optic connections possible. These are Active Optical Networks (AON) and Passive Optical Networks (PON). Each offers ways to separate data and route it to the proper place, and each has advantages and disadvantages as compared to the other systems:

1. An Active Optical Network (AON) system uses electrically powered switching equipment, such as a router or a switch aggregator, to manage signal distribution and direct signals to specific customers. This switch opens and closes in various ways to direct the incoming and outgoing signals to the proper place. In such a system, a customer may have a dedicated fiber running any specific location

2. A Passive Optical Network (PON) by comparison does not include electrically powered

switching equipment but rather refers to a telecommunications technology that instead uses unpowered optical splitters to separate and collect optical signals as they move through the network. A passive optical network shares fiber optic strands for portions of the network but can make a single optical fiber serve multiple end points or customers. The system can be described as Fiber-To-The-Curb (FTTC), Fiber-To-The-Building (FTTB), or Fiber-To-The-Home (FTTH). Powered equipment is required only at the source and receiving ends of the signal.

a. Passive Optical Networks, or PONs, have some distinct advantages: They're efficient, have a low building cost as well as lower maintenance costs. Because there are few moving or electrical parts, there's simply less that can go wrong in a PON.

b. Passive optical networks also have some disadvantages: They have less range than

an Active Optical Network, meaning subscribers must be geographically closer to the central source of the data. PONs also make it difficult to isolate a failure when they occur. Also, because the bandwidth in a PON is not dedicated to individual subscribers, data transmission speed may slow down during peak usage times in an effect known as latency. Latency quickly degrades services such as audio and video, which need a smooth rate to maintain quality.



In this case and for the use of the grant monies GCS is deploying systems that combine elements of both PON and AON to form a HYBRID network solution. When addressing the 65 mile Point to Point “backbone” of the new network an AON system design will be deployed utilizing state of the art Cisco fiber optic equipment Due to the reach and range limitations of a PON system for the Point to Multi-Point portion or and last mile solution of the local distributive network a PON system design and equipment will be implemented Timeline for completion of the infrastructure improvements: The new KONNECT mission critical network to solve the REDUNDANCY problem that plagues the Rim Country will be completed in less than twenty four (24) months.

Type of construction to be undertaken The GCS network will be composed of both aerial and underground portions. Qualification of the vendor/contractors The HYBRID network architecture being deployed in the Rim Country is a technology that GCS has been designing and implementing since 2001 in many other markets, with a great deal of success. The vendors that have been selected for the network electronics, fiber optic cabling, as well as other materials are well known have been trusted suppliers for many years. While the contractor for construction has not yet been selected, the RFP will be distributed to approved vendors which GCS has



used in the past and who meet or exceed GCS’s rigorous standards on quality and meeting deadlines. Engineering analysis RBDG B – NA Project approach RBDG B – NA Background of the project With the latest revised approach to the project GCS sees an opportunity to provide the businesses and residents in the Rim Country with a much needed solution to network REDUNDANCY as well as increased CAPACITY. There is no question that the delivery of a terrestrial Rural Broadband network presents a significant challenge which is driven by the distances, routing, and trenching requirements. Even with the passing of SB1402 and ADOT right of way allowances cost becomes the deciding factor. In fact, if it were not for the efforts of APS and their aerial fiber option a terrestrial network build is simply not economically viable. Moreover, due to the previous lack of interest or investment in rural broadband in the Rim Country area a situation where network outages have become at minimum an annual occurrence. Completion of the new GCS fiber network will provide the much needed mission critical REDUNDANCY for:

• First Responders and Emergency Services, • Hospital, Medical Centers and Telemedicine Services, • Local agencies including Federal, State, County and Town • Schools and Libraries • Businesses • Residential

In addition, the increased CAPACITY will allow the Rim Country communities to realize planned expansion, attract new business, and better serve emerging technologies such as 5G and IoT. Maps Aerial 65 miles on the APS high power lines from Pinnacle Peak to Payson AZ F. Other Project Outcomes: This project has two primary drivers, public safety and economic development. Emergency services have failed and will fail again. With completion of this project, GCS’s infrastructure will secure the hospital, and emergency services. Payson’s economy is primarily tourism based but even so key decision makers and project managers now realize the importance of mission critical REDUNDANT internet services to the community. Just like the necessity for electricity or water, high speed data and internet services are a portion of an infrastructure that can’t be overlooked or ignored. Other potential benefits include:



• Attraction and development of fixed wireless and upcoming 5G small cell technologies in the area • Increased capacity at exiting Wi-Fi hotspots resulting in increased customer satisfaction and loyalty • New and expanding Telehealth services for the aging and retired population • Telecommuting opportunities • Ecommerce, Online and Virtual Reality services • Attraction of new businesses, employers where high speed services are required (Engineering,

CAD, CAM, Aviation flight simulators, etc.) • Development and expansion at the Payson air park • Expansion of fairgrounds and community centers to allow for a larger number of visitors (Rodeo,

concerts and special events) • Expansion and upgrades at the local schools and colleges resulting in an improved learning

environment, grades and school ratings

Documents

Arizona cOMMERCE AUTHORITY grant application...Since Verizon Wireless launched 5G wireless service this year, the rapid expansion of the Internet of Things (IoT) over the past five