In 1984, the state began its first deployment of digital transmission, and in 1985, it began planning for
an integrated voice, data, and image network. In 1989, after the Office of the State Controller (OSC)
had completed integrating its voice and data networks into a single end-to-end statewide digital
network, an initiative was undertaken to develop a five-year plan for the state’s telecommunications
infrastructure. This new planning effort was driven by the projected need to support wide area
network (WAN) access for agency-based local area networks (i.e. WAN/LAN inter-networking);
high bandwidth for video, imaging, and graphic applications; and regional network consortiums (e.g.
city/county/educational initiatives).
Why Asynchronous Transfer Mode (ATM)?
After studying the major options and alternatives (T3 backbone, frame relay, switched services,
SONET, SONET/ATM) a State Government Network Planning Committee determined that the
state’s future network should be based on Synchronous Optical Network (SONET) and
Asynchronous Transfer Mode (ATM) technology. ATM is based on "cell-switching" technology. 
Cell-switching offers significant advantages across a broad range of applications.
In the last five years, ATM has experienced tremendous growth, both in available products and
services from LANs, WANs, and public networks. The advantages of ATM include:
- Scalability - A cell generated on a 10Mbs LAN can be carried over a 45 Mbs link to a central office and then into a 2.4Gbs SONET transport system with the message in the same format.
- Transparency - A mixture of data, voice, image, and video is possible within the same application without compatibility being an issue.
- Granularity - ATM allows the network to be tailored to the application rather than forcing the applications to fit the network. This will permit the ultra-high-speed networking necessary for multimedia applications.
- Networking Flexibility - ATM can act as a self-routing, digital cross-connect system providing cost savings for the network user. The network can be reconfigured to meet changing time-of-day requirements and billed for only the bandwidth used.
- Interconnectivity - The state’s current networks use a wide variety of LAN and WAN technologies. These technologies continue to require an increasing amount of bandwidth. ATM can prioritize traffic in order to deliver predetermined responses, which are essential to time-sensitive applications such as video, audio, or mission critical information.
- Cost Curve Advantages - ATM cells are switched via hardware. This method provides higher throughput than software-based systems and offers improved price/performance as microprocessor power increases and incremental costs decrease.
Figure 3. Advantages of Asynchronous Transfer Mode
With these advantages, it became clear that ATM was the only viable option for providing high
bandwidth from desktop to desktop across the entire state network. ATM technology has enormous
potential and offers low cost per-unit of bandwidth.
After affirming the feasibility of this approach, the OSC requested that the three major telephone
companies in North Carolina (Bell South, Carolina Telephone and GTE) submit proposals for the
construction of a statewide optical-fiber-based network using SONET/ATM technology. These
proposals were submitted in April 1992 and the final design and pricing structure was received in
October 1992.
Beginning with Governor Martin’s Executive Order 136 and under Governor James B. Hunt, the
planning and implementation of the NCIH was deemed a major initiative. It was envisioned that the
NCIH would provide greater equities, expanded opportunities, and increased efficiencies in the
provision of services. The NCIH as we know it today was officially announced in May 1993. The
first 33 sites were implemented in August 1994. As of May 1996, there were 125 sites operational,
with an additional 10 sites pending installation. Of the 125 operational sites, 80 are video-only, 4 are
data-only and 41 are using both video and data services.
Today the NCIH is evolving into the backbone for the statewide broadband communications network
(the North Carolina Integrated Information Network (NCIIN)) and is being built jointly by the major
telephone companies, inter-exchange carrier, and the independent telephone companies operating
within the state. The state is the principle customer of this network and pays a usage fee to the
providing telephone companies. The network employs advanced SONET/ATM fiber-optic
technology to provide a broadband pipeline for high-speed data, voice, and video.
This is a bold new technology with many potential benefits. SONET/ATM technology provides
broadband capacity simultaneously and efficiently for teleconferencing, high-speed data access,
distance learning, and multimedia applications. The NCIIN will allow state entities to document the
advantages of broadband technology, and discover ways to reorganize government operations to
reduce overall costs and improve services.
Over time, the NCIH will be absorbed into the communications background and lose much of its
visibility; but not its benefits. Independent studies have affirmed the state’s plans and direction for the
state’s telecommunications infrastructure. These studies are noted in Appendix B.
The state of North Carolina operates a web of interoperable, narrow and broadband networks known
as the NCIIN, of which the NCIH is one part. The NCIH is an all-fiber, all-digital, high-speed
network using ATM switching technology and SONET transport to deliver broadband
communications services. In migrating to the NCIH, the initial focus was on educational video. Data
applications that require high-bandwidth capability are beginning to increase.
The interoperable state networks which comprise the NCIIN can transmit data, text, graphics, voice,
and video to serve education, health care, criminal justice, economic development, and government
operations. Having interoperability among the data portion of these networks allows for
incremental growth without costly rework or reengineering.
In addition, the state offers a range of other network services that are not strictly a part of the state’s
interoperable network. These include:
- A statewide voice network
- A mainframe SNA computer network
- Data networks
- Mobile data services
These various networks exist for two reasons. First, they offer the speed and quality necessary for
agencies with diverse missions and technological needs to meet their programmatic requirements as
cost-effectively as possible. Second, they maintain the state’s investment in current technology while
it moves to newer, more advanced technology.
It is envisioned that the state’s network will be consolidated as various services continue the
transition to the SONET/ATM backbone. The NCIIN is being enhanced continually to meet customer
needs with seamless migration for both today and tomorrow.
The NCIIN is founded upon four key principles:
- Universal Service - Network access to all parts of North Carolina.
- Equalized Rates - Same usage rates regardless of geographic location.
- Shared Resources - Elimination of duplication and assurance of interoperability.
- Public/Private Partnership - Capital outlay is made by the private sector and the usage base is provided by the state.
NCIIN Services
The OSC is working with the various network user organizations (educational entities, state agencies
and departments, etc.) to develop a statewide interconnectivity plan that will ultimately provide
NCIIN access to every school system, community college, university, state agency, local agency,
county, city, town, medical facility, and library across North Carolina.
In addition to the high-speed broadband information highway, there are other major network services
available through the NCIIN. These are described in the following paragraphs.
- Low-cost dial-access service
- This service enables government entities with a personal computer (PC) and regular telephone
service to access a vast array of locations. These locations can be connected to the Internet or to
an NCIH location. With this service, a location can transmit records, electronic mail, or access
databases. This service is provided through contracts with commercial providers at a low
monthly rate (plus long distance charges in certain areas). Local governments, libraries, schools,
and remote state agencies are projected to be the primary users of this service.
- ANCHOR NET
- ANCHOR NET (A North Carolina Highway On-Ramp) service enables the state's large computer
systems and groups of PCs to communicate locally, nationally, and internationally--including
across the Internet. This service is available at any state location. State agencies are now using
this service as the delivery mechanism for major initiatives such as the Integrated Tax Accounting
System (ITAS) and the Automated Collection and Tracking System (ACTS). County
governments are beginning to use it as the primary vehicle for accessing state databases. It is a
lower cost, lower capacity data-only alternative to full Information Highway capability. This
network is designed so that any subscriber on this network can migrate to full NCIH capabilities
when those capabilities are required. This service is also referred to as the WAN.
- Access Net
- This service is being developed and is currently in a pilot mode. It will provide data
communications for a segment of the state government locations not adequately served by either
dial access, ANCHOR NET, or the NCIH. Typical clients will be offices with up to 20 users who
lack the traffic volume to warrant a full ANCHOR NET connection, but whose needs are more
sophisticated than dial access service. This system will provide access to the state's databases,
electronic mail service, and the Internet.
The General Assembly has expressed concern about the cost effectiveness and long-term funding
impact of the NCIH. The 1994 General Assembly instructed the State Auditor’s Office to conduct a
performance audit of the NCIH. The primary focus of the audit was to “define what the costs of the
NCIH have been and to give the Legislature a projection of the future cost impact to the state.”
Based on the findings of this audit, the State Auditor projected an estimated cumulative total cost for
the NCIH by all agencies through the year 2003 to be $1,016,504,198. This figure was based on
3424 sites and included all capital and operational costs of each site including local staffing, training,
equipment, maintenance, and network charges.
The State Auditor concluded that "The NCIH has promoted the development of advanced
telecommunications capability within our state and can serve as the platform for any number of
exciting and innovative applications. North Carolina’s future is intimately linked to technology
development and use, but it will require a concerted effort by all to take advantage of this
opportunity. The task now is to define all potential users of the network. The legislative and
executive branches of state government should accomplish this task together."
The 1995 General Assembly engaged Telecommunications Consulting Group to do a study of the
NCIH. In their report, Mr. William B. Garrison Jr. and Mr. John G. Williams acknowledged that the
NCIH holds out great promise, but has also generated great controversy.
In their opinion, two basic mistakes had been made regarding the NCIH. "The first is not
understanding the implications of the truly advanced technology that is being used in the project. The
second is assuming that studies and models can be used to ‘prove’ assertions about the future of the
NCIH, instead of relying upon evolving data from real-world experience to guide the project’s future
direction."
They concluded that both mistakes can be addressed by managing the NCIH in a more controlled and
measured way, with an emphasis on actual results and experience to guide further development.
During its 1995 Session, the North Carolina General Assembly enacted limitations on funding and
expenditures for the NCIH (1995 Sess. L., c. 507, s. 27 (House Bill 230) Section 27). These
limitations include:
- Restricting the $2.5 million appropriated funds to costs incurred by the OSC related to the operations and support of the NCIH.
- Excluding uses of appropriated funds for payment of minimum monthly usage charges for NCIH services until the Controller certifies to the General Assembly that the network is capable of performing all services for which the state has contracted and that the network equipment and service providers are capable of providing full and adequate support for the network’s functions.
- Restricting any state funds from use or encumbrance to expand the sites for the NCIH beyond the 74 approved by the General Assembly.
- Prohibiting expansion of NCIH sites that would obligate the General Assembly for additional state appropriations.
Using the 74 approved sites, the OSC initiated a project to assess and evaluate the benefits and effectiveness of the NCIH in FY 1995-96. This information will help determine the focus and future direction of the state’s information highway. Four data sites are included in the 74 approved sites to allow assessment of the benefits of high-speed data transmission via the NCIH.
