Mountain connect2013 presentations

COLLABORATION
The Wave of the Future !!!

PUBLIC SECTOR
• Service Oriented
• Tax Based Budgeting
PRIVATE SECTOR
• Service Oriented
• Return on Investment Budgeting
Partner Perspectives

Broadband

Infrastructures

Partnerships
Public - Public
Public - Private

Mountain Connect 2013
Tim Miles
Technology Director
Steamboat Springs School District (SSSD)
South Routt School District (Soroco)
325 7th St
Steamboat Springs, CO 80487
970-871-3184 (W)
970-819-4363 (C)
tmiles@sssd.k12.co.us

My Buildings
Approx: 2200 Kids
Buildings: 6 (2-Elemtary, 1-Middle, 1-High, 1-Admin, 1-Trans)

Why
are
we
here?

• What’s
the
problem
SSSD/Steamboat?

• 3.5
hours
from
Denver

• Top
Ranked
School
District
–
State/Na3on

• High
Cost
($100+
MB),
Recently
(50+MB)

• Redundancy?

• One
Provider
(CL)
…
Last
mile
(Comcast,
Resort,
Zirkel,
Satelite)

• Who
is
beWer
nego3ator?
(Me,
Them,
Neighbor)

• Rent
3mes
Many

• Slow
Learners

• Their
Business
Model!

• Sorry
you
are
not
Denver!

• My
needs
are
s3ll
growing-‐What
to
do?

– Wait

– Do
it
yourself,
Partner

Educate-They need our help?
 Who has rented a tuxedo?
 Shame on me! Shame on You! Solution!
 Who has upgraded/converted/purchased telco services?
 How did that go? Who is looking like Tuxedo company?
 Don’t want to but need to!

Solu3on:CNL

• The
simple
solu3on:
CNL

• You
are
not
alone

• Larger
Voice,
Larger
Demand,
Nego3a3on,
Aggregate,
Demand,
Partner

• Rent
3mes
One

• BeWer
Cost

• You
now
have
op3ons!

• How
much
does
it
cost?

• StartUp

• Time(Organize)

• Ongoing

• Is
it
feasible?

• I
believe
so

• What’s
the
RoI?

• Lower
Cost,
Added
Value,
Redundancy(?),
Growth,
Partners,
Nego3a3on

What
Is
A
Carrier
Neutral

Loca3on

BeWer
Internet
for
Everyone

SB
152

• hWp://www.leg.state.co.us/clics2005a/csl.nsf/billcontainers/
FA216226F45192FE87256F41007B483C/$FILE/152_01.pdf

Problem
=
Slow,
Expensive,
Unreliable

Internet

Fix
It
=
Compe33on
=
CNL

Item
Cost

Leasehold
improvements
$17,000

Capital
equipment
$35,000

ARIN,
BGP,
ISP
related
work
$27,000

Consultants,
RFP
etc
$12,000

Total
$91,000

Cost:

$91,000

RoI:
Savings
on
Network
Outages

RoI:
SSSD
Savings
on
Bandwidth

*Es3mate
of
1
Gbps
service
from
EagleNet

Sustainability/Growth

• Sustainable
at
NCB
member
only
level;

• More
sustainable
with
more
tenants

• Poten3al
for
Growth

– More
commercial
tenants

– More
service
providers

– Distributed
Antenna
System

• Consolida3on
of
Services

• Redundant

Distributed
Antenna
System:

-‐Deploy
high-‐speed
Wi-‐Fi
and
cellular
services

-‐More
bandwidth,
less
money

-‐More
produc3vity

-‐”The
Steamboat
Experience”

CNL
Supports
DAS

Conclusion

• CNL
is
aﬀordable
in
NCB
budget

• Strong
business
case
for
CNL

• Strong
poten3al
for
sustainability
AND
growth

• What’s
the
next
step?

Questions?
Tim Miles
Technology Director
Steamboat Springs School District (SSSD)
South Routt School District (Soroco)
325 7th St
Steamboat Springs, CO 80487
970-871-3184 (W)
970-819-4363 (C)
tmiles@sssd.k12.co.us

PR E PA R E D F O R
MOUNTAIN CONNECT 2013 RURAL BROADBAND
JUNE 17, 2013
BR E C K E N R I D G E , CO
B Y
A N T H O N Y D . E D W A R D S , E S Q
S A N J U A N L A W O F F I C E , L L C
CO-FOUNDER OF
CROWDFUNDING OFFERINGS, LTD. CREATOR OF THE MAIN STREET CROWD
PLATFORM
WWW.MAINSTREETCROWD.COM
Crowdfunding:
A New Avenue for Expanding
Broadband to Communities

Presentation Outline
Introduction
Crowdfunding Investing Coming to A Theatre Near You Soon
Broadband Crowdfunding
Platforms & Projects
Crowdfunding Options
The Concept of Investing via Crowdfunding
Review of Crowdfund Act of 2012
Group Discussion

What is Crowdfunding?
Debt
• The “crowd” commits funds in return for interest or “profit
sharing.” (Prosper.com)
Donation/Rewards Based
• The “crowd” donates funds in
return for rewards (Kickstarter & Indiegogo)
Equity Investing
• The “crowd” purchases shares in return for equity
• $20.5 million raised overseas in 2011 (Forbes)

Broadband Projects
 CROWFUNDING BROADBAND SUCCESS
 Blacksburg Virginia ($91,400)
 TechPad’s fundraising campaign to bring next-generation Internet
speeds and free public Wi-Fi to Blacksburg reached its goal with
less than seven hours remaining Wednesday evening. [Roanoke
Times, June 6, 2013]
 1 Gigabyte (200 Megabit Speed)
 $75.00 per month for Downtown
Direct Access

Broadband Projects
 OTHER BROADBAND PROJECTS
 ULTRA-FAST Crossroads Wi-Fi: Kansas City, MO
KANSAS CITY? BUT I THOUGHT THEY HAD GOOGLE FIBER!
Continued
Hosted on http://neighbor.ly/

Broadband Projects
 OTHER BROADBAND PROJECTS
 GOOGLE FIBER/KANSAS CITY
 Serving Residential
 Business Community Remains Underserved
 RESPONSE
 Ultra-Fast Crossroads Wi-Fi Project (100 Mb/s Wireless Mesh for
Crossroads in Kansas City (Project Pending Launch)
 Juniper Gardens Apartments located in one of the poorest sections
of Kansas City, Kan.(Project Success)
 Neighbor.ly Project raised $34,500 and equipment
manufacturer Ubiquiti made up the difference with an in-kind
contribution of product.

COMMUNITY FOCUSED CROWFUNDING
 INITIATIVES NOT ORGANIZATIONAL SUPPORT
 ADDRESS THE COMMUNITY’S NEED
 (BUSINESS DEVELOPMENT/EXPANDED EDUCATIONAL
OPPORTUNITIES/GOVERNMENT EFFICIENCY)
CROWFUNDING BROADBAND
(PUBLIC vs PRIVATE or PUBLIC/PRIVATE)
 PUBLIC CENTRALIZED CROWFUNDING BROADBAND
EFFORTS


(PUBLIC/PRIVATE)
 PRIVATE ENTITY MANAGEMENT/PUBLIC ENTITY OWNERSHIP
or SUPPORT
 GOVERNMENT/NGO FUNDING
 Crowfunding for Broadband Expansion
• Cheaper/Lower Service Fees is a Reward
• Partner with Private Sector for Professional Network Management
WHY?
 The Private Sector is much more receptive and experienced in
Managing Multi-User (Residential/Business/Other) Networks.
 Aggregating Private Sector Demand is what motivates Private Sector
Participants.

(PRIVATE ONLY)
 CURRENT OPTIONS
 BROADBAND EXPANSION BY CROWDFUNDING DIRECTLY
TO THE PUBLIC IN RETURN FOR REWARD (e.g. LOWER
FEES)
 PRIVATE START-UP
 Equity Offering via Regulation D (Accredited Investor Focused)
 FUTURE OPTIONS
 Equity Crowfunding via the Public (Network/Company owned by
some community members) (LLC/S Corp/C Corp/Public Benefit
Corp)

Crowdfunding Investing: A Brief Synopsis
A NEW AVENUE FOR RAISING CAPTIAL
• The ‘Crowd’ receives a small stake in a business in return for
investing capital towards an online funding goal
• Network of support for the business (Ambassadors/
Customers/Advisors)

General Process for Crowdfunding Investing
Entrepreneur
FUNDING PORTAL
1. Entrepreneur Posts Project in Portal
2. Crowd Evaluates the Offering
3. Crowd Pledges to Invest via Escrow or Transfer Agent
4. If Successful, Business is Funded
5. If Successful,Transfer Agent Forwards Shares to
Crowd
6. Entrepreneur Reports to Shareholders and Performs
Other Duties as Required

JOBS Act: CROWDFUND Act of 2012
 Allows existing businesses and start-ups to raise
up to $1,000,000 of capital, online, every 12 months
 Allows the general public to invest in these security
offerings (no accredited investor restriction)
 Provides investor protections and platform
restrictions

Investor Protections: Equity Crowdfunding
• In general, the greater of $2,000 or 5% of annual income and no
more than $2,000 per offering in any 12 month period
Investing limits
• Officers and directors
• Principals holding more than 20% of the equity
Background checks on issuers
• Provide risk related disclosures
• Investor education information
• Investor affirmation
Investor education/confirmation

Outstanding Questions: Equity Crowdfunding
 When can I sell my interest?
 How do I sell my interest?
 How is valuation determined?
 Can My Community Create a Micro Stock Exchange?

What Now? Equity Crowdfunding
 The SEC had 270 days from April 5, 2012 to receive
public input and formulate the Rules.
 Washington Insiders anticipate the Rules to be
Released by Fall 2013

Conclusion
 Crowdfunding is a legitimate option for communities
to expand Broadband Services.
 Projects & Initiatives are what the public prefers to
fund.
 Public/Private/Collaborative Crowdfunding
Solutions are filling the gap and will continue to do
so.

About SkyWerx
 Launched in 2003
 Residential and business broadband
provider to Pagosa Springs, Bayfield,
Durango.
 Network backend is built upon redundant,
licensed, long-haul microwave links (50+
miles) fed via fiber with East and West
Routes
 One of the largest WISPs and Middle Mile
Providers in SW Colorado and the only
Gbps+ licensed microwave network
spanning 200+ miles

Infrastructure and Network
Expansion Update
 Completed 1 Gbps backbone into Chaffee
County
 Network is indirectly servicing Monarch Ski
Area, Mt. Princeton Hot Springs, and the
towns of Salida and Buena Vista
 Future Network Expansion planned for
Gunnison and Montrose which would
complete our planned ring for Southwest
Colorado

• North Monarch Ridge will act as the
Central Hub between Gunnison and
Chaffee County

Community Collaboration
 Financed and supported by anchor
institutions, key employers within the
community, and individuals
 Examples are Crestone Telecom, Colorado
Central Telecom, Adams State College,
SCAN Project, Fasttrack Communications
 Colorado Central Telecom collaboration
partners consists of SkyWerx Industries,
Monarch Ski Area, Mt. Princeton Hot
Springs, Ralph Abrams, and other key
individuals

Collaboration Continued
 SkyWerx and Adams State College have
teamed up to provide an alternative and
redundant backbone solution into the San
Louis Valley
 SCAN Network (SW CO Access Network)
along with SkyWerx Industries and Fasttrack
Communications have come together to
provide fiber and microwave solutions for
the SCAN project
 SkyWerx utilizes some of Fasttrack’s fiber
assets to better provide primary and
redundant solutions across Southwest
Colorado

Collaboration Continued
 Partnering with smaller ISP’s with a Dealer
Program to provide advanced and diversified
services to their portfolio
 Example is Align Technologies out of
Durango to resale and re-brand SkyWerx
residential services
 Key benefits are low cost of product
offering. No infrastructure investment or
maintenance. Can offer same quality of
service that SkyWerx offers with own
branded product. Revenue sharing for
Dealer

Middle Mile
 8 Gbps Full Duplex
 Distances up to 50 Miles per/hop
 Consists of an all indoor system utilizing
6-11 Ghz
 Low cost in comparison to running fiber long
distances
 Equal reliability compared to fiber
over short hall and long hall
applications

Last Mile
 Over the Air Rates up to 1.3 Gbps
 Extremely Low Latency for Voice and Video
Applications
 Low cost of deployment in comparison to wire
line services
 WISP’s will be capable of providing point to
multipoint service plans greater than 40 Mbps

Feasibility Study
for a
Fiber To The Premises System

The SLVREC service area can be
characterized as:
• Very limited availability of
wireline cable TV
• Limited availability of wireline
Internet access
67

24%

23%

53%

Both
Available
Cable
TV
only

Broadband
Only

82%

19%

Residency
Status

Year
Round
Seasonal

 75% of households use pay TV
 Stated average monthly spend:
 Cable: $78
 Satellite: $65
 There are an average of 2.2 TV
sets per pay TV household (HH)
68

3%

72%

11%

4%
11%

Cable
Satellite
Oﬀ
Air

Online

Other/None

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

$20

$40

$60

$80

$100
+
Don't

Know

Monthly
Pay
TV
Spend

0%

10%

20%

30%

40%

50%

One
Two
Three
Four
Five
or

More

Number
of
TV
Sets
in
the
Home

All
Pay
TV

 SLV is higher than the national average at
80% digital penetration to basic
 High definition service is prevalent at 63%
of pay TV users
 11% of pay TV users will upgrade to HD in
the next 12 months (Q5):
 Definitely Will: 9%
 Probably Will: 12%
 Might/Might Not: 11%
69

20%

80%

Basic
Cable
Digital
Cable

63%

30%

7%

Incidence
of
High
DeﬁniAon
TV

(among
all
pay
TV
users)

High
Def
Standard
Def
Don't
Know

 The average number of lines is:
 Residential: 0.9
 Small Business: 2.5 (other
market data)
 Wireless has become a substitute
service for wireline, especially
among younger HHs
 A further 9% of wireline phone users
will drop for wireless in the next 12
months
70

None
1
2
3
or
More

24%

66%

9%

2%

Number
of
Phone
Lines
in
the
Home

25
-‐
34
35
-‐
44
45
-‐
54
55
-‐
64
65
-‐
74
75
-‐
84

65%

32%

17%

21%

12%
9%

Households
Without
Wireline
Phone
Service

by
Age

 78% of study area households use
the Internet at home (65% is US
average as of April 2011)
 DSL and Satellite have the vast
majority of market share at 77%
71

14.5%

7.5%

2.8%

75.3%

Incidence
of
Internet
Households

No
PC
PC
without
Internet

Dial
Up
Broadband

4%

43%

5%

34%

14%

0%

Internet
Market
Share

(Households)

Dial
Up
DSL
Cable
Modem
Satellite
Fixed
Wireless

 Market
share
reﬂects
the
lack
of
viable

terrestrial
access
technology
for
many

homes

 Stated
average
monthly
Internet
spend:

 Residen3al:
$46

72

Fiber
Op3c
Cable

Modem

DSL
Satellite
Fixed

Wireless

Dial
Up
Don't
Know

5%

41%

33%

14%

4%
3%

9%

58%

19%

1%

9%

4%

Internet
Access
Technology

Centris
Research:
April
2011
Home
Media
Magazine
(sample
40k
US
HHs)

SLV

Na3onal

0%

10%

20%

30%

40%

$20

$30

$40

$50

>
$50

Monthly
Internet
Spend

73

0.0

1.0

2.0

3.0

4.0

5.0

Brand
Number
of
TV

Channels

Internet
Speed
Price
Customer

Service

Reliability

2.4

3.6

4.2
4.4
4.5
4.7

Importance
RaAng
of
Select
Broadband
Service
AQributes

(Mean
Ra7ng
on
a
1-‐5
Scale)

74

Download
Most
Important
Upload
Most
Important
Both
Important

18%

3%

73%

75

Customer
Service

Channel
Selec3on

Reliability

Nothing

Increased
Internet
Speed

Lower
Prices

5%

6%

20%

20%

32%

34%

Q40:
“What
would
you
like
to
see
most
improved
from
your
current
broadband
services?”

76

Customer
Service

Reliability

Channel
Selec3on

Nothing

Increased
Internet
Speed

Lower
Prices

5%

20%

6%

20%

32%

34%

13%

11%

10%

17%

5%

43%

8%

13%

13%

16%

22%

47%

San
Luis
Valley

Technology Strategy
Base Electric Operations

 Substation SCADA
 SCADA system is hamstrung by lack of high capacity communications
 Currently uses wireless systems for communications backhaul
 Greater bandwidth would greatly improve effectiveness of SCADA
 Advanced Meter Infrastructure
 Current powerline carrier system does not offer real time feedback /
control
 Future metering and billing requirements will likely require new AMI
approach
 Latest AMI systems work best with access to high speed backhaul at
the neighborhood level
 Other Smart Grid Applications
 Automated control of capacitor banks
 Monitoring telemetry from transformers
 Monitoring regulator banks
78

Technology Strategy
Broadband Services

 Why
FTTP?

 Gold
standard
for
local
broadband
services
distribu3on

 Technology
is
far
superior
to
any
other
op3on
now
and
in
the
future

 Gigabit
Passive
Op3cal
Network
assumed
for
new
network

 GPON
commercially
available
from
mul3ple
suppliers

 Mature
technology
with
millions
of
units
shipped

 Standard
GPON
architecture

 1:32
spliWers
deployed
in
centralized
split
network

 One
spliWer
cabinet
typically
serves
250-‐260
homes
/
businesses

 Cabinets
can
be
pad
or
pole
mounted
–
very
low
proﬁle

 System
reach
is
20
km
from
GPON
equipment
(OLT)
loca3on

 SLVREC “electric” installs proposed backbone and feeder system
 Add services specific systems at network operations center (NOC)
 Video
 Internet
 VOIP
 Back office
 Deploy FTTP systems at the neighborhood level
 FTTP networks deployed in those neighborhoods with a minimum
commitment to subscribe to FTTP services
 FTTP systems connected to the NOC by the feeder and backbone
networks
 All homes and business passed within given neighborhood
 Connect broadband subscribers to FTTP system
 Pre-subscribed households connected at time of neighborhood
construction
 Subscribers connected via fiber drop, optical network terminal, inside
wiring and customer premises equipment

 Video
Services

 SLVREC
offers
retail
video
services
(no
VOD)

 Satellite
dish,
off
air
antennas,
video
processing
equipment

 System
is
modeled
as
IP
Video
delivery

 Internet
Services

 SLVREC
offers
high
speed
retail
Internet
services

 Internet
services
back
office
systems

 Phone
Services

 SLVREC
offers
full
featured
local
and
long
distance
phone
service

 Phone
traffic
delivered
over
Internet
backbone
facili3es

 SpliWer
cabinets

 Placed
in
serving
areas
between
32
and
260
homes
and
businesses

 Provides
point
of
cross
connec3on
from
NOC
to
the
home
via
spliWer

 Distribu3on
ﬁber

 Distribu3on
ﬁber
connects
subscribers
to
their
spliWer
cabinet

 Up
to
six
cables
connect
to
each
spliWer
cabinet

 Cables
sized
to
serve
the
homes
and
businesses
passed

 Network
access
points
(NAPs)

 NAPs
aWach
to
the
distribu3on
cables

 Subscriber
drops
are
spliced
in
the
NAP

 One
NAP
can
serve
up
to
12
homes
or
businesses

 NAPs
located
on
the
pole,
in
the
ground
or
in
a
pedestal

Mountain Connect 2013
www.parcconline.org

Testing Timetable
 Window (20 Days) --- All kids tested

Broadband
 Minimum Specs 2014-2015, Maybe 2015-2016
 Recommended 2018-2019
Broadband
 Byte or Bit?

SSSD Current
 Elementary
 1000+ Kids
 60+ lab computers
 300+ Classroom computers (Can’t be used)
 150+ iPads(Don’t want to be used)
 50+ Laptops
 Middle
 500+ Kids
 90+ lab computers
 100+ iPads (Don’t want to be used)
 20+ Classroom Computers (Can’t be used)
 40+ Laptop Computers
 High
 700+ Kids
 150+ Lab Computers
 15+ Ipads (Don’t want to be used)
 300+ BYOD

SSSD Needs
 Elementary
 250+ computers
 No Room (Hotel, What)?
 ISP can you turn up temp service?
 Middle
 60+ Computers
 No Room
 High
 50 + Computers
 Bandwidth
 100K * 600 Computers
 .48 Gig if byte or 60GB if Bit

E-rate for Infrastructure
Colorado
Department
of
EducaAon

DeLilah
Collins

State
E-‐rate
Coordinator

 Overview

 What’s
eligible
for
discounts

 Roles

 Priority
2
–
Internal
ConnecAons/Basic
Maintenance
of

Internal
ConnecAons

 Health
of
the
program

Discussion Topics

 What
is
E-‐rate?

 Program
that
helps
ensure
that
schools
and
libraries
can
obtain

telecommunica3ons
and
Internet
access
at
aﬀordable
rates

 FCC

 Universal
Service
Fund

 Who
can
apply?

 Public/Private
Schools,
Public
Libraries,
Head
Start,
Juvenile
Jus3ce,

Consor3um

 How
much
money
can
an
applicant
receive?

 Discounts
range
from
20%
-‐
90%
of
the
total
cost
of
services

Overview

• Priority
1
(P1):
funded
ﬁrst

– Internet
Access

– Telecommunica3ons

• Priority
2
(P2):
funding
starts
with
neediest
applicants

– Internal
Connec3ons

– Basic
Maintenance
of
Internal
Connec3ons

What is funded?

 Write
technology
plan
(Priority
2
services
only)

 File
FCC
Form
470
and
write
RFP(if
necessary)

 Evaluate
bids

 Select
the
service
provider(s)

 Document
the
compeAAve
bidding
process

 File
FCC
Form
471
and
Item
21
aQachment

 Get
technology
plan
approved

 File
FCC
Form
486

 Select
invoice
method
(BEAR
or
SPI)
/
File
BEARs

 Retain
documentaAon

Applicant Role

 Respond
to
FCC
Forms
470
and
RFPs

 NegoAate
and
sign
contracts
for
contracted
services

 Assist
with
preparing
Item
21
aQachments

 Provide
technical
answers
during
applicaAon
review
on

quesAons
regarding
speciﬁc
goods
and
services
requested,
but

NOT
on
compeAAve
bidding

 File
FCC
Form
473
(SPAC
Form)

 File
SPIs
and/or
approve
BEARs

 Retain
documentaAon

Service Provider Role

 Service
Providers
Can:

 Refer
applicants
to
exisAng

sources
(e.g.,
state
DOE
or

state
library,
public
website)

for
help

 Offer
NEUTRAL
advice

 Can
offer
product

demonstraAons

 Can
provide
informaAon

about
product
offerings

 Can
refer
applicants
with

quesAons
to
exisAng
sources

of
informaAon

 Service
Providers
CANNOT:

 Write
the
applicant’s

technology
plan

 Assist
in
the
wriAng
or

preparaAon
of
the

applicant’s
technology
plan

 Cannot
provide
sample
RFPs

or
RFP
templates
to

applicants

 Cannot
offer
gifs
outside
of

the
excepAons
provided
in

the
program’s
gif
rules

Do’s and Don'ts

 Support
for
equipment
and
cabling
onsite
that
transport
info

to
classrooms
or
public
rooms
of
a
library

 Subject
to
the
Two-‐in-‐Five
Rule

 En33es
can
only
receive
funding
every
two
out
of
ﬁve
years

Internal Connections

VoIP
A
leased
VoIP
phone
system
is
NOT
eligible
for
Priority
1
funding

By
removing
the
VoIP
equipment,
the
local
voice
network
will
cease
to
func3on.

This
equipment
is
eligible
ONLY
as
Internal
Connec3ons
(Priority
2).

VoIP
A
gateway
may
be
leased
with
eligible
Priority
1
VoIP
service.

A
gateway
is
considered
a
single
basic
termina3ng
device.

 Priority
2
–
VoIP
components
are
eligible.

 Includes:

 VoIP
phone
system,

 VoIP
router
and/or
switches,
and

 Soyware
licenses
for
the
func3oning
of
the
IP
telephone
devices.

 Excludes:

 End-‐user
devices
e.g.
IP
phones
and
Soyphones.

VoIP

 Allows
for
support
for
lit
or
dark
fiber,
as
a
priority
one

service,
from
any
enAty

 Dark
fiber
must
be
lit
immediately

 Lit
during
the
funding
year

 Does
NOT
allow
for
unneeded
capacity
or
warehouse
dark

fiber
for
future
use

Leased Dark Fiber

 Maintenance
costs
of
dark
fiber
and
installaAon
costs
to
hook

up
the
dark
fiber
are
eligible

 This
includes
charges
for
installa3on
within
the
property
line
(see

eligibility
matrix)

 ModulaAng
electronics
for
leased
dark
fiber
are
not
eligible

 Eligible
only
as
applicant
owned
priority
2
if
it
meets
the
defini3on

of
an
internal
connec3on.
If
being
used
for
LAN
traffic
it
is
eligible;

if
WAN,
not
eligible.

Leased Dark Fiber

 Special
ConstrucAon
charges
to
build
out
connecAons
from

applicants’
faciliAes
to
an
oﬀ-‐premise
ﬁber
network
are
NOT

eligible.

Leased Dark Fiber

Dark Fiber Install and Maintenance
Matrix

 Some
examples
of
not
eligible
special
construcAon
charges

include:

 Design
and
engineering
costs,

 Project
management
costs,

 Digging
trenches,
and

 Laying
ﬁber

Leased Dark Fiber

 Allows
for
support
for
basic
maintenance
of
eligible
internal

connecAons.

 Examples:

 Repair
and
upkeep
of
eligible
hardware

 Wire
and
cable
maintenance

 Basic
technical
support

 Conﬁgura3on
changes

Basic Maintenance of Internal
Connections

 Agreements
or
contracts
must
state
the
eligible
components

covered
by
make,
model
and
locaAon.

 Service
must
be
delivered
within
the
July
1st
to
June
30th

Ameframe.

 Two-‐in-‐Five
Rule
does
not
apply
to
BMIC.

Connections

 Unbundled
warranAes
are
NOT
eligible.

 Unbundled
warranAes
allow
for
broken
equipment
to
be
ﬁxed

or
if
it
is
beyond
repair,
replaced.

 Unbundled
warranAes
are
considered
a
type
of
retainer
and

not
as
an
actual
maintenance
service.

 This
does
not
apply
to
a
manufacturer’s
warranty
of
no
more

than
three
years
that
is
included
in
the
price
of
the

equipment
,
OR

 If
the
retainer
is
Aed
to
actual
service
performed

Connections

 BMIC
costs
must
be
a
bona
ﬁde
request.

 It
is
not
reasonable
to
es3mate
an
amount
that
would
cover
the

cost
of
every
piece
of
eligible
equipment.

 While
replacement
of
hardware
may
be
eligible
as
BMIC,
it
is

not
meant
to
circumvent
the
2-‐in-‐5
rule

Connections

 Priority
1

 Priority
2

 Priority
2
–
Basic
Maintenance
of
Internal
ConnecAons

 Miscellaneous

 Special
Eligibility
CondiAons

 Glossary

Eligible Services List

 Cabling/Connectors

 Circuit
Cards

 Data
DistribuAon

 Access
Points,
hubs,
network
switches,

routers

 Data
ProtecAon

 Firewall,
Proxy
Server,
Tape
Backup,
VPN,

 Interfaces,
Gateways,
Antennas

 Servers

 DHCP

 DNS

 E-‐mail

 Firewall

 Proxy
Server

 Sofware

 Network
Opera3ng
System
Soyware

 E-‐mail

 Client
Access
Licenses

 Virtualiza3on
Soyware

 Storage
Devices

 See
ESL

 Telephone
Components

 PBX

 Key
System

 Voice
Mail

 Wireless

 VoIP
Telephony
Equipment

 Video
Components

 CODEC

 Master
Control
Unit

 Mul3point
Control
Unit

 PVBX

 Racks

 DocumentaAon

 System
Improvements
and
upgrades

Eligible Services List – Priority 2

 Priority
1

 Demand
exceeds
amount
available

 Available
funds
$2.38
billion

 Amount
requested
$3.6
billion

 450
million
roll
over

 Priority
2

 No
money
for
P2
requests

 Amount
requested
$2.77
billion

2013-2014 Funding

 Fund
will
be
indexed
for
inﬂaAon

 Demand
up
10.8%
from
2012-‐2013

 Not
enough
for
both
P1
&
P2

 May
not
be
enough
for
P1

 Need
your
help!

2014-2015 Funding

Questions?
DeLilah
Collins

State
E-‐rate
Coordinator

collins_d@cde.state.co.us

303.866.6850

Who
are
ya
and
whadia
doin
here?

• Richard
Wilson,
Chief
Execu3ve
Oﬃcer,

Southeast
Colorado
Power
Associa3on

• How
did
Southeast
get
in
the
broadband
biz

– Who
was
involved
and
What
were
the
reasons

– When
did
it
happen
and
What
did
it
take
to
get
it

done

– What
was
the
outcome

– What
lessons
were
learned

Overview

• Southeast
Colorado
Power
Associa3on
(SECPA)
–
Formed
in
1937
as
a
not-‐
for-‐proﬁt,
member
owned
electric
u3lity

• REA’s
were
formed
because
large
electric
u3li3es
at
that
3me
refused
to

provide
electricity
in
rural
areas
because
proﬁts
could
not
be
made
due
to

the
low
density
of
electric
customers

• Realizing
that
rural
America
could
not
prosper
without
the
availability
of

electric
power,
local
ranchers
and
farmers
grouped
together,
made
a
plan,

communicated
the
need
and
enlisted
the
help
of
the
local
community,
and

then
either
personally
built
or
caused
to
be
built,
most
of
what
became

the
rural
electric
power
backbone
in
place
today.

Sound
familiar?

• Today,
SECPA
serves
over
10,000
services
covering
nearly
12,000
square

miles
of
rural
southeast
Colorado,
nearly
20%
of
the
land
area
of
the
state

Overview
–
Con’t

• SECPA
MISSION
STATEMENT:
Our
Primary
Mission
is
to
provide
high
quality,

reliable,
electric
service
at
a
reasonable
cost
to
our
members,
improve
their

quality
of
life
through
new
technologies
and
services,
be
a
visible
and
ac3ve

member
of
the
community,
and
serve
our
members
with
respect,
courtesy
and

responsiveness

• Within
SECPA’s
service
area,
there
are
22
rural
school
districts,
4
rural
libraries,
8

CSU
extension
agencies,
8
rural
medical
facili3es
and
2
community
colleges

• In
1998,
SECPA
was
approached
by
the
Colorado
community
college
system
to
seek

par3cipa3on
in
a
pilot
project,
“Connect
Colorado”,

with
a
goal
and
vision
to

provide
high
speed
internet
and
distance
learning
services
via
broadband

telecommunica3ons
technology
to
these
agencies

• The
SECPA
Board
of
Directors,
mindful
of
the
Mission
Statement,
especially
the

part
that
says
to
enhance
the
quality
of
life
through
new
technologies,
decided
to

become
an
ac3ve
partner
in
this
vision

• Several
scenarios
were
discussed
and
it
was
ﬁnally
decided
that
a
ﬁber
op3c

backbone
was
the
best,
albeit
not
the
cheapest,
solu3on

Overview
–
Con’t

• A
deal
was
struck
and
the
result
was
a
public/private
partnership

that
constructed
a
500+
mile
backbone
fiber
system
touching
all

of
the
aforemen3oned
schools
etc.
and
more

• In
late
1999,
SECOM,
a
Colorado
Compe33ve
Local
Exchange

Carrier
(CLEC),
was
born
as
an
opera3ng
division
of
SECPA.
Due

to
it’s
growth,
it
has
become
a
wholly
owned
subsidiary
of

SECPA.

• Today,
SECOM
has
grown
to
over
1500
miles
of
diverse
and

redundant
fiber
op3c
backbone
and
over
$5M
in
annual
revenue

• Product
offerings
have
grown
from
simple
internet
to
complex

commercial
data
networks,
advanced
voice
services,
wireless
ISP

service
in
remote
rural
areas
and
partnerships
with
na3onwide

carriers

SECOM
Service
Area:
Rural
and

Remote
but
NOT
Un/Underserved!

Need
10
Gbps+
in
KIM
(pop.
68)?

Call
us!

Industry
and
Area
Significance

• Disrup3ve
Pricing:
Ini3al
Schools
Standard
offering
Point
to
Point

(building
to
building)
fiber
connec3ons
for
$125/month
or
$1.25/
Mbps/month
(beWer
than
Denver
area
pricing)
providing

for
100

Mbps
service.

Rural
hospitals
can
get
assistance
from
a
federal

program
similar
to
E-‐RATE.

The
government
pays
the
difference

between
the
rural
pricing
as
compared
to
an
average
price
in
the

metro
area.

Example:

If
Denver
was
$500,
and
the
rural
area
was

$700,
the
government
would
pick
up
$200.

When
the
local

hospitals
applied
for
assistance
on
the
circuits
they
purchased
from

SECOM,
they
couldn’t
get
any
because
SECOM’s
pricing
was
LESS

than
the
pricing
in
the
Denver
metro
area.

The
people
in
DC
were

shocked.

• SECOM
is
a
21st
century,
all
Internet
Protocol
communica3ons

service
provider

• Uses
primarily
aerial
and
buried
fiber,
plus
microwave
in
some

cases,
as
middle
mile
alterna3ve
to
the
telephone
company

Industry
and
Area
Significance
–
Con’t

• Offers
op3cal
wavelengths
to
large
bandwidth
users
as

alterna3ve
to
telephone
company

• Fiber
to
the
premise
(FTTX)

Both
business
and

residen3al
customers
with
FTTX
are
Gigabit
ready.

• Fixed
wireless
as
last
mile
alterna3ve
to
telephone

company

• Offers
Analog
and
VoIP
and
hosted
PBX
services
as

alterna3ve
voice
services
to
telephone
company

Significance
to
Our
Communi3es

• Currently
serves,
with
E-‐RATE,
26
school

districts
(nearly
15%
of
ALL
Colorado
school

districts)

• 2
Board
of
Coopera3ve
Educa3on
Services

(BOCES)
-‐
Southeast
BOCES
operates
one
of

Colorado’s
largest
rural
area
distance
learning

networks

• 29
public
safety
offices
(fire/law
enforcement)

• 4
(or
25%)
of
Colorado
Community
Colleges

Signiﬁcance
to
our
Communi3es–Con’t

• 8
rural
libraries

• 7
rural
hospitals/medical
clinics

• 8
rural
mental
health
clinics

• 4
State
and
Private
Prisons

• 11
municipal/9
county
governments
and
over

230
community
anchor
ins3tu3ons

• Our
schools
are
capable
of
the
bandwidth

recommenda3ons
for
the
2015
online
TCAP

tes3ng.
Are
yours?

Economic
Beneﬁts

• Provided
needed
ILEC
Compe33on

• Provides
aﬀordable
middle
mile
transport
for
other

area
ISP’s,
increasing
compe33on

• Employees
22
inside
and
outside
personnel
and
s3ll

growing

• Generate
important
payroll
and
property
tax
revenue

for
rural
coun3es

• Creates
very
important
Primary
revenue
from
sources

outside
the
lower
Arkansas
Valley

• Keeps
local
dollars
local
rather
than
sending
them
to

the
front-‐range
or
to
another
state.

Signiﬁcance
to
Colorado

• Provided
a
strong
example
for
other
rural
electric
co-‐ops
and
like-‐
minded
en33es
to
provide
enhanced
services
to
their
communi3es

• Leverages
exis3ng
infrastructure
(power
lines,
rights-‐of
way
and

outside
opera3ons
exper3se)
to
improve
the
broadband

environment
of
rural
Colorado

• Leverages
leading
edge
technology
to
improve
broadband

environment
of
Southeast
Colorado.

Also,
electric
u3li3es
are

increasingly
using
such
technology.

Technology
such
as:

– Aerial/buried
ﬁber
–
Gigabit+
Speeds

– Fixed
wireless
–
Compe33ve
wireless
internet
products

– VoIP
–
Analog
with
Advanced
Features

• Sustainable

– Low
CAPEX,
highly
compe33ve
in
this
market

Conclusion

• SECOM
oﬀers
a
successful
model
for
rural

communi3es
in
establishing
a
SUSTAINABLE

broadband
environment
and
opportunity

– Community-‐owned
and
operated

– An
Engaged
Partner
in
the
community

– Primary
service
provider
to
Southeast
Colorado’s

educa3on,
medical
and
community
anchor

ins3tu3ons
for
nearly
15
years

– Visit
us
at
www.secom.net
and
www.secpa.com

Ques3ons?

SECPA
1-‐800-‐332-‐8634

SECOM
1-‐888-‐925-‐7695

Who
Is
This
Guy?

• CMO/Founding Partner of The Think
Agency
• We support tech firms by serving as their
virtual marketing team, including:
139
www.sngroup.com

Let’s
Start
With
What
We
Know…

• There is a relationship between broadband and
economic development.
• Research shows…
– 55% of businesses and organizations said
broadband is essential for remaining in current
location
– 38% of households said they would definitely/likely
relocate if broadband was not available
– 32% of households work from home or have a
home-based business, with 14% planning to start in
the coming year
140
www.sngroup.com

Economic
ROI
from
Public
Investments
in
Broadband

Contribu3on
to
GDP
10

x

the
iniAal
public
investment

Fiscal
revenues
increase
3

to

4

x
the
iniAal
public
investment

141
ROI
from
Broadband
Networks

SNG projects have revealed common return on
investment (ROI) multipliers from broadband
investments*
*Average multipliers identified from economic impact studies conducted by SNG.

142
And
Broadband
Means
Jobs

Percent of New Jobs
Related to Internet
By Size of Employer
Group
Broadband is responsible for 22.4% of all new jobs
Source: SNG Digital Economy Database n = 3,574 from NC, VA and KY collected in
2010-12
0%
5%
10%
15%
20%
25%
30%
35% 31.5%

21.4%

23.1%

19.2%

22.4%

Employees

Small
businesses
create 12x more
Internet jobs
relative to large
firms

So
What
Now?

143
www.sngroup.com
You
have
an
awesome

infrastructure…
but

insuﬃcient
adopAon
and

uAlizaAon…
so
what
do

you
do?

Have
a
catch!

144

Laissez-‐faire

(A)
Driving
UAlizaAon

(B)

Year
One
10%
uptake
12%
uptake

Year
Three
18%
uptake
35%
uptake

WaiAng…
versus
teaching

* Financial profile of typical fiber network build. Source: Ventura Team LLP,
www.venturateam.com

Impact of Driving Utilization

145
“Crossing
the
Chasm”
*

* Geoffrey A.
Moore, 1991

Why “build-it and they will come” does not work?
→ Because people buy benefits, not features
… so driving awareness and utilization is the next
challengeFor further information, see “No Field of Dreams: Eliminating the Waiting Game and
Driving Uptake”

146

For an individual business or organization, increasing
utilization by 10% means:
Increasing revenues by 24%
Decreasing costs by 7%
Why Drive Utilization?
For a Region, it means :
Allowing businesses to be more competitive
Creating a demand for high-skilled workers
Adding fiscal revenues
Average multipliers identified by SNG from over 12,000 data records collected in
2009-10.

147
0%
5%
10%
15%
20%
25%
30%
35%
40%
14.8%

20.0%

15.7%

25.5%

29.4%
30.7%

36.8%

%
of
Revenues
aQributed
from
Internet
usage

Level
of
Broadband
UAlizaAon
(DEi
score)

Contribution of Internet to Revenues / Level of utilization
Increased
U3liza3on
Directly

Correlates
to
Revenue
Growth

Businesses
underuAlizing
the
Internet
miss
signiﬁcant
revenue
opportuniAes

Source:
SNG
Digital
Economy
Database
n
=
1,202
from
NC,
VA
and
KY
collected
in
2010-‐12

148
What’s
so
hard
about
it?

Quick to Adopt
Laissez faire “Okay”
Slow to Adopt
Need Lead Horse to Water
Household Applications
Email Entertainment
Banking Investments and Trading
News and Sports VoIP
Information gathering Home Based Business
Business Applications
Buying Online Selling Online
Basic Website Online media (video)
Research and accessing
information
Teleworking
Email, document transfer Delivering Content and
Services
Social Networking
BIGGEST
BENEFITS

How
Can
You
Achieve
UAlizaAon?

Lead
with
the
BENENIFITS
of
Applica3ons

We uncover Internet use at a micro-level
and benchmark against peers
17 e-solutions1 by businesses / organizations
30 e-solutions1 by households
Utilization data collected2 by SNG directly
from 23,000 businesses / organizations
And 11,000 households.
SNG has normative database with deep insights on
Internet usage and impacts – over 110 metrics for each record.
Results shown use SNG’s Digital Economy index (DEi), a composite
score
between 1 and 10 to reflect level of Internet utilization.
How
SNG
Measures
U3liza3on

1. Internet-enabled applications and processes; 2. Between 2008-2011 150

Personalize Results: DEi
Scorecard
A DEi Scorecard is delivered to
each business and organization
Individualized ‘broadband health check’
that:
‒ benchmarks competitiveness against
peers
‒ estimates ROI from increased utilization
‒ provides links to local advisors and
support
Data based on the individual’s current
broadband utilization against industry
average
Shared with local economic development
agencies so they can raise awareness,
increase adoption, and drive utilization
Cost-effective because automatically
15
1

DEi
Impact
Calculator

-‐
choose
e-‐strategy
based
on
ROI
-‐

152
Source: SNG Digital Economy Database n =
27,200
1. Select your organization characteristics
2. Select your actual and needed e-Solutions

DEi
Impact
Calculator

-‐
choose
e-‐strategy
based
on
ROI
-‐

15
3
4. Details of potential revenues and cost
savings
3. See your potential benefits from increased
utilization
Source: SNG Digital Economy Database n =
27,200

154
Reliable, affordable BB
Responsive Customer Service
Meaningful utilization
Local ownership to drive economic
development
Economic Growth and quality of life from
broadband
The
Elements
of
Success

TO
ENSURE

YOU
NEED

155
155

Thank-‐you

Let’s connect !
www.sngroup.com
Doug
Adams,
VP
CommunicaAons

Strategic
Networks
Group,
Inc.

720.412.7876

dadams@sngroup.com
www.thethinkagency.com

156
www.sngroup.com

 Crowdfunding: alternative to conventional
means of financing broadband
infrastructure
 Carrier Neutral Location (CNL) =
redundant, abundant, affordable MIDDLE
mile/IP networks
 Distributed Antenna System (DAS) =
redundant, abundant, affordable LAST mile
 Multi-Gbps Microwave = very low cost
middle mile alternative to fiber optic cable
 Rural Electric Cooperatives = aerial fiber as
alternative to telephone company
infrastructure

 Internet3 Telecommunications
Cooperative: A cooperative under
Colorado Revised Statutes (formal filings
coming very soon)
 2 classes of membership: vendors and
subscribers or better yet – “supply and
demand”
 Sustained through membership fees and
other revenue streams

 Subscriber members
• Facilitation + planning + aggregation
• Redundant, abundant, affordable telecom
services via the “5 A’s”
 Vendor members
• Aggregated demand
• Open access markets
• Redundant, abundant, affordable wholesale
services
• 21st century sales channels

 Telecom Co-ops in CO: over 100 years
old (Peetz, 1908);Thank you CTA!
 Lessons learned from:
• Crestone Telecom: community-funded, owned
and operated; cash flow positive after one year
• Northwest CO Broadband CNL points to
sustainable business models for all involved
• Rural electric cooperatives with telecom
infrastructure
• Extensive social network of Regional Planning
Teams

 All the pieces for better broadband
environment are present in one form or
another, just need to be implemented
 Implementation is:
• “90% social, 10% technical”
(Milo Medin, Google)
 Logical next step for Regional Planning
Teams

 Communities/Regional Planning Teams:
• How can we help you “stop talkin’‘n start doin’”?
• What is your aggregate demand and how can
we market that to improve your broadband
environment?
 Vendors/Emerging Value Network:
• How can we help you build your business case?
• How do we work together to “change the math”
to achieve “redundant, abundant and affordable”
broadband environment?

 Frank Ohrtman 720-839-4063
 Audrey Danner 970-321-2021
 Jeff Gavlinski 970-382-1799
 More info + FREE ebook:
 “I’ll Vote forYou IfYou Make My Netflix
Work” at http://www.i3coop.org

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