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St. Joe Valley MetroNet Technology Symposium May 27, 2004

St. Joe Valley MetroNet Technology Symposium May 27, 2004. St. Joe Valley MetroNet Technology Symposium – page 1. Values of a Metropolitan Area Network Initiative Introduction

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St. Joe Valley MetroNet Technology Symposium May 27, 2004

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  1. St. Joe Valley MetroNet Technology SymposiumMay 27, 2004

  2. St. Joe Valley MetroNetTechnology Symposium – page 1 Values of a Metropolitan Area Network Initiative Introduction Bryan Baker, partner with CCI. A locally based tele-management company the provides telecommunication cost savings and management solutions for the business and service provider industry nationwide. Intangible Values Evaluation of the “soft” costs and benefits Tangible Values Correlation to real dollar figures

  3. Intangible Values 1) Network Accessibility Local Arena National Arena Transcontinental Fiber Facilities

  4. 2) Network Security 3)Network Integrity and Redundancy Loop architecture 4) Choice and Control of Service - Layer 1 Secure - Carrier Grade Facility

  5. Tangible Values Basic Broadband Services Model Telecommunication Transmission Mediums Fiber or Wireless Carrier Grade Lit Telecommunication Services Consumer Grade Lit Communication Services Cost comparison of metro dark fiber (Telecom Medium) @ $1,000 Chicago @ $2,500 in Indianapolis @ $3,500 in South Bend

  6. Cost comparison of current high end lit broadband services (Lit Carrier Grade specifically Gigabit Ethernet) @$2500 Chicago @$3750 Indianapolis @$5000 South Bend Economic Development & Retention Conclusions Q&A

  7. - Light travels at 186,000 miles per second

  8. Statistics Cost to build from scratch: $3,500,000 Successful reference communities -Cary North Carolina -Buffalo Minnesota -Evansville IN -Indianapolis IN -Shelbyville IN -Lafayette IN -Hammond IN -LaGrange Georgia -Columbus IN -Pasadena California -Milwaukee Wisconsin –Cleveland OH -South Dundas, Canada -Cincinnati Ohio - Chicago IL Economic Impact Case Study South Dundas Canada South Dundas Township is a community of approximately 11,000 located 70 kilometers south of Ottawa. The Township officially launched their fiber network in July 2001. As of August 2002, the South Dundas Economic Development Commission has documented the following impacts: -537 new jobs -Increased real estate development -Increased retail sales -Projections are $16.7 million increase in retail sales -145 person years of employment -$2.2 million in Federal Tax revenue -$1.6 million in Provincial tax revenue

  9. St. Joe Valley MetroNet Executive BriefingMay 24, 2004

  10. St. Joe Valley MetroNetExecutive Briefing – page 1 Introduction Project History Business Case Metro-morphisis Today’s Agenda Current Broadband Situation Broadband Defined: The ability to move electronic data in large quantity Components: 1) Customer Provided Equipment at Customer Site 2) Local Access (terrestrial and/or wireless) 3) Local Access Points 4) Available Public Network Service Providers

  11. St. Joe Valley MetroNetExecutive Briefing – Page 2 Current Market Conditions Local Access Loop Access Points Network Service Providers Broadband Users Proposed SJVM Solution

  12. St. Joe Valley MetroNetExecutive Briefing – Page 3 Compelling Circumstances If left to develop under current market conditions, the local broadband access market will most likely continue to be primarily under a single source provider’s service, cost, and regulatory agenda. Proactive Opportunity Create a platform that capitalizes on unique strategic assets by building a provider neutral broadband access system.

  13. St. Joe Valley MetroNetExecutive Briefing – page 4 Plan of Action Create St. Joe Valley MetroNet Inc.Installs and manages fiber in city conduits Contracts with businesses, institutions, municipalities, and service providers. Exclusive Invitation to Invest Financial investment as founding member Return on Investment Seat on Board – Control SJVM policy and strategy Substantial Cost Savings against market rates Community Impact Conclusions – Q&A

  14. St. Joe Valley MetroNetExecutive Briefing – Page 5 Initial Cost Estimates for Construction and Operation Construction Total Cost of Construction of Backbone Loop A: $1,926,272 City of South Bend Commitment to Loop A: $ 700,000 Net Cost of Loop A to SJVM: $1,126,272 Total Miles for Loop A: 16.3 Cost per Mile: $ 69,096 Total Fiber Count: 144 Total Cost per Fiber Mile: $ 479 Initial Number of Founding Members 5 Per Founding Member Initial Investment for Construction $ 225,254 Operation (Initial 3 year estimate) Total Operating Costs $ 487,225 Total Operating Costs per Mile $ 1,127 Total Operating Costs per Fiber Mile $ 69 Per Founding Member Initial Investment for Operation $ 97,445 Total Investment Per Founding Member: $ 322,699

  15. Scale: 1 inch = 1.7 miles Loop A Loop B Loop C Loop D Red/Orange= Fiber Pull Yellow= New Conduit/Fiber Brown= FutureConduit/Fiber Proposed SJVM Network

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