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07 wifi Hovis

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Published on October 29, 2007

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Community Broadband: the existing landscape and emerging models:  Community Broadband: the existing landscape and emerging models Joanne Hovis, Esq. President, Columbia Telecommunications Corp. Colorado Municipal League June 2007 All text and graphics ©2007 CTC Wireless, fiber, and beyond: strategic planning:  Wireless, fiber, and beyond: strategic planning Think about different models, different technologies Technology choices are not either/or Technology platforms are complementary Need should drive technology, not inverse Plan for technology migration ©2007 CTC Technology Comparison:  Technology Comparison ©2007 CTC The range of emerging projects:  The range of emerging projects Public Broadband: meeting the needs of residents, businesses, and visitors Government-provided service/infrastructure (Saint Louis Park) or government incentives to lure private companies (Minneapolis) Institutional Broadband: meeting internal government needs Public safety Alternative to leased circuits ©2007 CTC Muni broadband 1G:  Muni broadband 1G First generation (1G) of muni networks arose in 1980s and 1990s Primarily rural Morganton, NC; Coldwater, MI exceptions: TacomaClick! Addressing patent market failure Initially focused on cable television Led by municipal electric utilities Alameda Power & Telecom; Tacoma City Light ©2007 CTC Muni broadband 2G: wireless:  Muni broadband 2G: wireless Growing momentum in the late ’90s Corpus Christi; Chaska, MN The Post-Philadelphia explosion The San Francisco/Google effect Hundreds of cities ©2007 CTC Muni broadband 2G: fiber:  Muni broadband 2G: fiber Fiber-to-the-Premises/User/Home (FTTx) Implementations in rural/suburban Utah (UTOPIA) Implementations in rural areas (Reedsburg, WI; Bristol, VA; Pulaski, TN; Chelan Cty, WA) Generally electric utilities Planning underway in larger cities (San Francisco, Seattle, Portland, Palo Alto) ©2007 CTC Muni broadband 2G: the international context:  Muni broadband 2G: the international context Muni Wireless: our lead Paris, Johannesburg, Dublin Muni Fiber: their lead Sweden (200 communities), Amsterdam, Cologne, Seoul, Singapore, Toronto, Vienna, Catalonia, Iceland, Paris ©2007 CTC Muni broadband: the key driver—market failure:  Muni broadband: the key driver—market failure More bandwidth threatens cable/telco business models Historical monopoly--one-service, separate phone & cable networks Current duopoly (at best)--bundled voice, video and data (“triple play”) over closed networks Limited new construction: infrastructure is a natural monopoly Analogy: delivery services over roads ©2007 CTC Muni broadband: the key driver—market failure, cont’d.:  Muni broadband: the key driver—market failure, cont’d. The future technology enables: one big data pipe Access over real broadband—enables creativity and innovation Services provided by web-based third parties (Skype, Joost, Akimbo, YouTube) that compete with incumbents The future if the incumbents prevail Cash cow copper or cable systems Industry profits from bandwidth scarcity, not abundance Limited competition from 3rd parties because low bandwidth precludes ©2007 CTC Muni broadband: the drivers—competing in a global economy:  Muni broadband: the drivers—competing in a global economy OECD (Organization for Economic Cooperation and Development) report May 2007: US ranks 15 out of 30 member nations in per capita broadband use 2006: US ranked 12th 2001: US ranked 4th The FCC and incumbents will dispute ©2007 CTC Muni broadband: the drivers, cont’d:  Muni broadband: the drivers, cont’d Economic development Downtown/development areas Small business access Office and technology parks Education/workforce preparedness Telework Health-care Digital inclusion Hipness/image ©2007 CTC Muni broadband 3G? Emerging driver—the environment:  Muni broadband 3G? Emerging driver—the environment Focus on fiber, wireless apps emerging Satellite offices/ Telework/ Telepresence Mobile access to aggregated traffic information High speed remote government and public access Clinton Global Initiative/ Cisco Connected Communities San Francisco, Seoul, Amsterdam ©2007 CTC Business Models: wireless:  Business Models: wireless Public facilitation of private investment San Francisco, Philadelphia, Houston Generally, some public investment—anchor tenancy or otherwise Dominant model for now: the Google effect Public ownership Transition from public to private ownership Corpus Christi ©2007 CTC Business Models: fiber:  Business Models: fiber Public facilitation of private investment Applying the wireless RFP model to fiber: very preliminary Seattle Paris Limited to major markets with significant infrastructure? ©2007 CTC Business Models: fiber:  Business Models: fiber Public Ownership Retail Rural, utility-based Reedsburg, Pulaski, Jackson Wholesale/Open Access UTOPIA Emerging in San Francisco and Portland, OR Sweden and most European projects Business/Industrial Clients Only Los Angeles (fiber and wireless) ©2007 CTC Business Models: fiber:  Business Models: fiber PARTIAL Public Ownership: Amsterdam model 3-layers: Passive, Operator, Service providers City owns 33% of passive layer based on lower investment Private investment premised on City commitment City ensures public policy goals without full risk Too early to assess applicability--limited to major markets? ©2007 CTC A note of caution:  A note of caution A gold rush for vendors and consultants Ask every consultant, vendor, operator, construction company: What are you getting out of this? Who is taking the risk? ©2007 CTC Why is fiber important to your wireless initiative?:  Why is fiber important to your wireless initiative? Limitations of the “free” wireless model Worked for early, large communities (San Francisco, Philadelphia) Not free--generally, some public investment—anchor tenancy or otherwise Not universal—will not happen for everyone: the Google effect Lack of control (pricing, service levels, upgrades) ©2007 CTC Why is fiber important to your wireless initiative?, cont’d:  Why is fiber important to your wireless initiative?, cont’d Limitations of wireless 3 to 5 year lifespan Speed and capacity Fiber boosts your wireless capabilities Fiber scales Theoretically unlimited capacity Enables migration to new technologies as they emerge 10Mbps to 100Mbps today; 1Gbps migration Fiber is a long-term investment 30 or more years (7 for electronics) ©2007 CTC A Range of Technologies:  A Range of Technologies Fiber as core of network and key investment (Build when you can…..sewer, water, ROW, housing development, sidewalk replacement) Wireless as extension and for mobility Emerging wireless technologies and BPL for hard-to-reach areas Fiber makes it possible to take advantage of new technologies as they emerge ©2007 CTC Building a 21st Century Municipal Infrastructure:  Building a 21st Century Municipal Infrastructure A hypothetical, phased approach ©2007 CTC Slide23:  FTTP Utility Assets Schools and Infrastructure Institutional, Public Safety, and Power Users Phase 1 ©2007 CTC Slide24:  FTTP Utility Assets Schools and Infrastructure Institutional, Public Safety, and Power Users Business Parks Select Businesses Phase 2 ©2007 CTC Slide25:  FTTP Utility Assets Schools and Infrastructure Institutional, Public Safety, and Power Users Business Parks Wireless Remote Power Users Government Mobile Users, Including Public Service Population Center Businesses and Business Districts Population Center Residences Phase 3 Select Businesses ©2007 CTC Slide26:  FTTP Utility Assets Schools and Infrastructure Institutional, Public Safety, and Power Users Business Parks Wireless Remote Power Users Government Mobile Users, Including Public Safety Population Center Businesses and Business Districts Population Center Residences Emerging Wireless or BPL Multi-Dwelling Units Hard-to-Reach Residences Hard-to-Reach Businesses Phase 4 Select Businesses ©2007 CTC Slide27:  FTTP Utility Assets Schools and Infrastructure Institutional, Public Safety, and Power Users Business Parks Wireless Remote Power Users Government Mobile Users, including Public Safety Population Center Businesses and Business Districts Populations Center Residences Multi-Dwelling Units Small Businesses Residences Phase 5 Select Businesses Hard-to-Reach Residences ? Hard-to-Reach Businesses ? Emerging Wireless or BPL ©2007 CTC Case study: St. Louis Park, MN:  Case study: St. Louis Park, MN 12 sq miles; inner suburb of Minneapolis Had 14 mi fiber serving City and institutional users; adding 10 mi fiber Citywide coverage – total outlay of $2.7m ($.5m for UG fiber); annual opex excl. of financing $300,000; annual financing costs $470,000; positive cash flow from day 1 assuming take rates of 30 percent Two tier model (could be three as in Boston, Amsterdam) Potential migration path to FTTP? ©2007 CTC Hierarchy of User Needs and Technology:  Hierarchy of User Needs and Technology ©2007 CTC Hierarchy of Services and Technologies:  Hierarchy of Services and Technologies RF (Analog & Digital) Cable, Switched Telephone and Data IP Video, VoIP and Data VoIP and Data Data Fiber Wireless Required Bandwidth ©2007 CTC Hierarchy of Population Densities and Technologies:  Hierarchy of Population Densities and Technologies Urban, Suburban and Cities Towns Townships Rural Fiber Wireless1 BPL? 1Terrain, foliage, and other objects impact the viability of wireless. ©2007 CTC Using what you already have:  Using what you already have Existing assets can significantly decrease the cost of building, maintaining, and operating a municipal broadband network Existing assets can also entice third party providers to work with you to build a municipal broadband network ©2007 CTC Building a 21st Century Municipal Infrastructure:  Building a 21st Century Municipal Infrastructure Install conduit during road improvements and other CIPs Conduit is key for future proofing your infrastructure Low incremental cost to install conduit during roadwork or utility installation (sewers, electrical) Conduit can be leveraged to entice commercial carriers to offer services in your municipality or to build municipal networks Cost of pulling fiber through existing conduit: $6,000 to $12,000 per mile Cost of new underground fiber construction: $50,000 to $100,000 per mile ©2007 CTC Building a 21st Century Municipal Infrastructure:  Building a 21st Century Municipal Infrastructure Use commercial carrier construction in your municipality to your advantage Negotiate conduit or dark fiber during permitting or franchise negotiations Look for construction partnerships during upcoming infrastructure projects Leverage your existing infrastructure to barter for additional infrastructure ©2007 CTC Feel free to contact me with questions or comments:  Feel free to contact me with questions or comments Joanne Hovis 410.980.8378 jhovis@internetCTC.com

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