Link Michigan Contract Update November 2005

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Link Michigan Contract UpdateNovember 2005
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AGENDA

• Link Michigan contract review
• Changes in the Link Michigan contract
• New opportunities

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Quick review of services and suppliers

• I. VOICE
• Long Distance (InterLATA) SBC and QWEST
• Local Toll (IntraLATA) long distance SBC and
  QWEST
• CENTREX/Centranet SBC and Verizon
• Measured Business Lines SBC and Verizon
• Directory Assistance SBC, QWEST and Verizon
• Audio and Web conferencing - SBC
• Toll-free Calling SBC and Qwest
• II. DATA
• CBDS III SBC
• Internet Services Merit and Qwest
• III. VIDEOCONFERENCING
• Service and Equipment - SBC

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Savings and Optimization

• Commitment by the agencies to participate in this
  contract has paid off ongoing detailed bill
  reviews continue to reveal greater savings
  opportunities
• More work is required review your services
  bills!

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Change is the Only Constant!

• State agency requirements are changing, so the
  telecommunications services and pricing available
  on this contract must also change
• This contract contains a clause that requires a
  review of technology and pricing every 18 months.
  The first contracted review started in April and
  ended in September.
• The most critical requirement change was in the
  Wide Area Network services and pricing.

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Wide Area Network (CBDS)

• New requirements
• Additional bandwidth to remote sites for growing
  application load
• Reduced pricing
• Additional low priced, limited-services, offering
  for non-critical sites.
• Future need for very high bandwidth sites

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Wide Area Network (CBDS)

• Contract changes to meet the challenge
• Base level bandwidth raised from 56k frame relay
  to 512k frame relay
• Prices for all bandwidth offerings lowered
• Aggregate change in State spend for CBDS is ZERO
  while still increasing the bandwidth to almost
  400 sites!
• Managed IP-VPN service added to the contract
• NO additional Minimum Revenue Guarantee

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Wide Area Network (CBDS)

• Pricing (base service)
• 512kbps (basic) 700/mo
• 511/mo reduction
• 768kbps (medium) 1408/mo
• 103/mo reduction
• T1 (high) 1607/mo
• 18/mo reduction
• Managed IP-VPN 299/mo
• New service
• FY06 pricing now includes backbone
  allocation
• Cost of commercial broadband connection is
  not included in the IP-VPN managed service rate

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Next Steps for CBDS

• Upgrade all 56k sites to 512k by March 06
• No additional cost to the agencies in FY06
• Migrate non-critical, low service level, sites to
  IP-VPN if alternative commercial broadband
  carriers are available
• Continue to consolidate circuits in shared
  buildings or campuses
• Increase bandwidth of CBDS backbone to LMAN
  interfaces
• Explore options for Metro-Ethernet services for
  bandwidths greater than 10Mb

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New Telecommunications Opportunities

• Refresh of branch/remote office voice systems
  with new technology and central management,
  interoperability capabilities
• Consolidate all wireless voice and data contracts
  into several strategic, high-volume contracts and
  cost-saving programs (cell phones, pagers,
  wireless WAN data cards, Blackberry, wireless
  PDA, etc.)
• Additional conferencing and real-time
  collaboration tools and services

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Opportunities for Involvement

• Participate in voice technology requirements
  gathering focus groups and task forces
• Offer ideas for enterprise-wide optimization and
  cost-cutting
• Participate in RFP evaluation committees

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Questions ???
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Thank you