MountainConnect 2013 Presentations

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MountainConnect is the annual gathering of Colorado's rural broadband activists. Attendees share lessons learned in improving their broadband environments. This year's lessons included carrier neutral …

MountainConnect is the annual gathering of Colorado's rural broadband activists. Attendees share lessons learned in improving their broadband environments. This year's lessons included carrier neutral locations, crowdfunding rural broadband, distributed antenna systems (DAS) as last mile alternative, fiber-to-the-home as provided by rural electric co-ops, big phat (8 Gbps) microwave as a middle mile alternative, rural electric aerial fiber as middle mile alternative, Digital Economy index, legislative update, San Luis Valley Broadband Cooperative, fixed wireless as last mile alternative, community-funded, community owned and operated broadband networks, Internet3 Telecommunications Co-operative, i3, buyer's cooperative, aggregate demand, adopt existing resources and solutions, 90% social, 10% technical, local technology planning teams, E-Rate, PARCC, TCAP, ConnectED,

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  • 1. Internet3  Telecommunica0ons   Coopera0ve  Presents   MountainConnect  2013 Breckenridge,  CO June  16-­‐17,  2013 Main  Street  Sta;on Wednesday, July 3, 13
  • 2. Thank  You  Sponsors! MountainConnect2013/ $3,000/Sponsor/ $1,500/Sponsors/ $500/Sponsors/ Wednesday, July 3, 13
  • 3. Agenda 3 8:00  AM  Welcome  Liz  Mullen  &  Keynote  Dr.  Rick  Smith,  Mayor,  Bayfield,  CO 8:30  AM  The  Collabora;ve  Approach   -­‐  Aggrega;ng  Demand  =  Saving  Big  Money  on  Bandwidth Tim  Miles,  Steamboat  Springs  School  District  and  Northwest  Colorado  Broadband -­‐  Experience  Serving  2  Remote  Communi;es  Ralph  Abrams,  CEO,  Crestone  Telecom -­‐Crowdfunding  for  Community  Broadband  Anthony  Edwards,  Crowdfunding  Offerings 9:30  The  Technology  Hour -­‐  Distributed  Antenna  Systems  (DAS)  and  “The  Vail  Experience”Jim  Selby,  Aspen  Wireless -­‐  Big  Phat  Gigabit  Microwave  Jus;n  Davis,  Skywerx -­‐  SLV  Rural  Electric  Coopera;ve  Fiber  project    Loren  Howard,  San  Luis  Valley  Rural  Electric   Coopera;ve 10:30  AM  Delivering  Applica;ons  for  Educa;on -­‐  2015  Online  TCAP  Tes;ng:  Is  Your  School  District  Ready?  Tim  Miles,  Steamboat  Springs   School  District -­‐  E-­‐Rate  for  School  and  Library  Broadband  Infrastructure  Delilah  Collins,  Colorado   Department  of  Educa;on -­‐  A  Decade  of  Fiber  for  Rural  Schools  and  Community  Anchor  Ins;tu;ons     Rich  Wilson,  Southeast  Colorado  Power  Associa;on/Secom Wednesday, July 3, 13
  • 4. Agenda  (cont.) 4 12:30  PM  Statewide  Collabora;on  Opportunity:  Where  do  we  go  from  here? -­‐Regional  Middle  Mile  Providers  Unite!    Jus;n  Davis,  Skywerx,  Rich  Wilson,  Southeast   Colorado  Power  Associa;on,  Jonathan  Hager,  Tri-­‐States  Genera;on  and  Transmission   -­‐Internet3  Telecommunica;ons  Coopera;ve  Overview,  Frank  Ohrtman,  Internet3   Telecommunica;ons  Coopera;ve 1:30  PM  Collabora;ng  on  Broadband  Policy -­‐  High-­‐Cost  Fund  Reform    State  Senate  President  John  Morse/State  Senator  Gail  Schwartz -­‐Evolving  State/Na;onal  Policy  Picture  Erik  Cecil,  Esq.,  Source  Law  PC 2:30  PM  Economic  Development  and  Broadband:  The  Digital  Economy  index  (DEi),  Doug   Adams,  the  Think  Agency Wednesday, July 3, 13
  • 5. Keynote:  Dr.  Rick  Smith 5 Wednesday, July 3, 13
  • 6. COLLABORATION The Wave of the Future !!! Wednesday, July 3, 13
  • 7. BROADBAND CONNECTIVITY ?? Wednesday, July 3, 13
  • 8. BROADBAND CONNECTIVITY ?? Wednesday, July 3, 13
  • 9. BROADBAND CONNECTIVITY ?? Wednesday, July 3, 13
  • 10. The Great Divide Wednesday, July 3, 13
  • 11. The Great Divide Wednesday, July 3, 13
  • 12. The Great Divide Wednesday, July 3, 13
  • 13. The Great Divide Wednesday, July 3, 13
  • 14. The Great Divide Wednesday, July 3, 13
  • 15. BROADBAND COVERAGE Wednesday, July 3, 13
  • 16. PUBLIC SECTOR • Service Oriented Partner Perspectives Wednesday, July 3, 13
  • 17. PUBLIC SECTOR • Service Oriented • Tax Based Budgeting Partner Perspectives Wednesday, July 3, 13
  • 18. PUBLIC SECTOR • Service Oriented • Tax Based Budgeting PRIVATE SECTOR • Service Oriented Partner Perspectives Wednesday, July 3, 13
  • 19. PUBLIC SECTOR • Service Oriented • Tax Based Budgeting PRIVATE SECTOR • Service Oriented • Return on Investment Budgeting Partner Perspectives Wednesday, July 3, 13
  • 20. Road to Broadband Access Wednesday, July 3, 13
  • 21. Broadband    Infrastructures Wednesday, July 3, 13
  • 22. Broadband  Prescrip0on Wednesday, July 3, 13
  • 23. Partnerships Wednesday, July 3, 13
  • 24. Partnerships Public - Public Public - Private Wednesday, July 3, 13
  • 25. Tim  Miles:  Carrier  Neutral   Loca0ons Low  cost  means  of  gaining  a   redundant,  abundant  and  affordable   broadband  environment 15 Wednesday, July 3, 13
  • 26. 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 Wednesday, July 3, 13
  • 27. My Buildings Approx: 2200 Kids Buildings: 6 (2-Elemtary, 1-Middle, 1-High, 1-Admin, 1-Trans) Wednesday, July 3, 13
  • 28. Why  are  we  here? • What’s  the  problem  SSSD/Steamboat? • 3.5  hours  from  Denver • Top  Ranked  School  District  –  State/Na0on • High  Cost  ($100+  MB),  Recently  (50+MB) • Redundancy?   • One  Provider  (CL)  …  Last  mile  (Comcast,  Resort,  Zirkel,  Satelite) • Who  is  be_er  nego0ator?  (Me,  Them,  Neighbor) • Rent  0mes  Many • Slow  Learners • Their  Business  Model! • Sorry  you  are  not  Denver! • My  needs  are  s0ll  growing-­‐What  to  do? – Wait – Do  it  yourself,  Partner Wednesday, July 3, 13
  • 29. 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! Wednesday, July 3, 13
  • 30. Solu0on:CNL • The  simple  solu0on:  CNL • You  are  not  alone • Larger  Voice,  Larger  Demand,  Nego0a0on,  Aggregate,  Demand,  Partner • Rent  0mes  One • Be_er  Cost • You  now  have  op0ons! • 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,  Nego0a0on Wednesday, July 3, 13
  • 31. What  Is  A  Carrier  Neutral   Loca0on Be#er  Internet  for  Everyone Wednesday, July 3, 13
  • 32. SB  152 • h_p://www.leg.state.co.us/clics2005a/csl.nsf/billcontainers/ Wednesday, July 3, 13
  • 33. Wednesday, July 3, 13
  • 34. Problem  =  Slow,  Expensive,  Unreliable     Wednesday, July 3, 13
  • 35. Fix  It  =  Compe00on  =  CNL Wednesday, July 3, 13
  • 36. Wednesday, July 3, 13
  • 37. Wednesday, July 3, 13
  • 38. 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 Wednesday, July 3, 13
  • 39. RoI:  Savings  on  Network  Outages Wednesday, July 3, 13
  • 40. RoI:  SSSD  Savings  on  Bandwidth *Es0mate  of  1  Gbps  service  from  EagleNet Wednesday, July 3, 13
  • 41. RoI:  Summary Wednesday, July 3, 13
  • 42. Sustainability/Growth • Sustainable  at  NCB  member  only  level;   • More  sustainable  with  more  tenants • Poten0al  for  Growth – More  commercial  tenants – More  service  providers – Distributed  Antenna  System • Consolida0on  of  Services • Redundant Wednesday, July 3, 13
  • 43. Redundant  Middle  Mile Wednesday, July 3, 13
  • 44. Distributed  Antenna  System: -­‐Deploy  high-­‐speed  Wi-­‐Fi  and  cellular  services -­‐More  bandwidth,  less  money -­‐More  produc0vity -­‐”The  Steamboat  Experience” CNL  Supports  DAS Wednesday, July 3, 13
  • 45. Conclusion • CNL  is  affordable  in  NCB  budget • Strong  business  case  for  CNL • Strong  poten0al  for  sustainability  AND  growth • What’s  the  next  step? Wednesday, July 3, 13
  • 46. 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 Wednesday, July 3, 13
  • 47. Ralph  Abrams Crestone  Telecom  and Colorado  Central  Telecom DIY  Community  Broadband 37 Wednesday, July 3, 13
  • 48. Wednesday, July 3, 13
  • 49. 39 Wednesday, July 3, 13
  • 50. 40 Wednesday, July 3, 13
  • 51. 41 Wednesday, July 3, 13
  • 52. 42 Wednesday, July 3, 13
  • 53. 43 Wednesday, July 3, 13
  • 54. 44 Wednesday, July 3, 13
  • 55. 45 Wednesday, July 3, 13
  • 56. 46 Wednesday, July 3, 13
  • 57. 47 Wednesday, July 3, 13
  • 58. 48 Wednesday, July 3, 13
  • 59. Anthony  Edwards Crowdfunding  for  Rural  Broadband Wednesday, July 3, 13
  • 60. 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 C O - F O U N D E R O F C R O W D F U N D I N G O F F E R I N G S , L T D . C R E A T O R O F T H E M A I N S T R E E T C R O W D P L A T F O R M W W W . M A I N S T R E E T C R O W D . C O M Crowdfunding: A New Avenue for Expanding Broadband to Communities Wednesday, July 3, 13
  • 61. 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 Wednesday, July 3, 13
  • 62. What is Crowdfunding? Wednesday, July 3, 13
  • 63. 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) Wednesday, July 3, 13
  • 64. The Rewards/Donation Trend Wednesday, July 3, 13
  • 65. 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 Wednesday, July 3, 13
  • 66. 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/ Wednesday, July 3, 13
  • 67. 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. Wednesday, July 3, 13
  • 68. 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  Wednesday, July 3, 13
  • 69. COMMUNITY FOCUSED CROWFUNDING  INITIATIVES NOT ORGANIZATIONAL SUPPORT CROWFUNDING BROADBAND (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. Wednesday, July 3, 13
  • 70. COMMUNITY FOCUSED CROWFUNDING  INITIATIVES NOT ORGANIZATIONAL SUPPORT CROWFUNDING BROADBAND (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) Wednesday, July 3, 13
  • 71. 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) Wednesday, July 3, 13
  • 72. 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 Wednesday, July 3, 13
  • 73. JOBS Act: CROWDFUND Act of 2012 Wednesday, July 3, 13
  • 74. 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 Wednesday, July 3, 13
  • 75. 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) Wednesday, July 3, 13
  • 76. 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 Wednesday, July 3, 13
  • 77. Investor Protections: Equity Crowdfunding Wednesday, July 3, 13
  • 78. Investor Protections: Equity Crowdfunding Investing limits • 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 Background checks on issuers • Officers and directors • Principals holding more than 20% of the equity Investor education/confirmation • Provide risk related disclosures • Investor education information • Investor affirmation Wednesday, July 3, 13
  • 79. 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? Wednesday, July 3, 13
  • 80. 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 Wednesday, July 3, 13
  • 81. Conclusion Wednesday, July 3, 13
  • 82. Conclusion  Crowdfunding is a legitimate option for communities to expand Broadband Services. Wednesday, July 3, 13
  • 83. Conclusion  Crowdfunding is a legitimate option for communities to expand Broadband Services.  Projects & Initiatives are what the public prefers to fund. Wednesday, July 3, 13
  • 84. 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. Wednesday, July 3, 13
  • 85. Thanks  Sponsors! Wednesday, July 3, 13
  • 86. TOWN OFVAIL HOW WE MADE COMMUNITY BROADBAND HAPPEN By Jim Selby AspenWirelessTechnologies,Inc. (970) 948-9998 jim@aspenwireless.net Wednesday, July 3, 13
  • 87. NEXT GENERATION CELL TOWERS •Better coverage and capacity • Brings in choice of providers •Better aesthetics and no blinking lights at night •Can be used for local Government too (i.e.Public Safety &Wi-Fi) Wednesday, July 3, 13
  • 88. TOWN INFRASTRUCTURE Orange Dots =Wi-Fi Green Dots = Cell Wednesday, July 3, 13
  • 89. “Small Cell”Outdoor DAS &Wi-Fi   The future ofWireless   RESULT: 22 Gbps of data Injection! Wednesday, July 3, 13
  • 90. • Want to share our experience of WHO WHAT WHEN,WHY • ToV will get Several Million Network Infrastructure at no charge to tax payer. • AspenWireless started in 1999 because of the need for good   Internet in Aspen.We have a good track record of delivering   broadband with available technology. • We want to share our experience and help facilitateTANGIBLE progress. • We are here to help you not reinvent the wheel. OVERVIEW Wednesday, July 3, 13
  • 91. • • Mission:   We will provide the citizens ofVail and our guests superior   services,outstanding environmental stewardship and an   abundance of recreational,cultural and educational opportunities.   WHY DOTHIS? CREATE AWORLD CLASS     EXPERIENCE Wednesday, July 3, 13
  • 92. • Public Safety MunicipalWorkers • Variable Message Signs (Parking) • Irrigation Systems/River Gauges • Public Notification Alerts • Departmental Applications • Street Melt Systems • Special • CDOT Events -Teva Games,concerts,VailValley Foundation  &ToVWeb Cameras BUT -THIS IS ALSO SERVED TOV, CDOT   AND EAGLE COUNTY AS WELL! Wednesday, July 3, 13
  • 93. • Town • Eagle • Eagle • VailValley • TowerCo Medical -ToVVertical Assets & Fiber that helped bring AnchorTenants - ATT,VZW,SPRINT,etc. • AspenWireless - Neutral Operator & Liaison to protectToV Interests and success and value engineering their assets.     STAKEHOLDERS  ofVail - Uses *ALL* of Network assets County Public Safety - Redundancy School District usesToVVertical Assets Wednesday, July 3, 13
  • 94. • Initially   • ToV • Business   • before case didn't keep CenturyTel's interest  smart phones,superiorWi-Fi,Mobile Data Demand • ToV locals were getting upset with service quality • Town ofVail decided to take matters in their own hands • THE GOOD OUT OF IT - IT LAID THE GROUNDWORK AND HELPED SHAPE A BROADBAND PLAN     EVOLUTION  built in 2006 by CenturyTel during "MuniWi-Fi" craze Leadership jumped on the opportunity Wednesday, July 3, 13
  • 95. • ToV had the components for success: • Data • Fiber Center (muni center) &VTC Hub Site and Conduits • Vertical assets -ToV owns lights and buildings • A Broadband Master Plan that addresses Zoning,Design and Review    CREATED ASSETS THAT WERE LEVERAGED AS IN-KIND   COMMUNITY BROADBAND       PLAN Wednesday, July 3, 13
  • 96. • Started with a simple need to improve theWi-Fi system and get cellular coverage inVTC • We know the trends with REIT and Cellular companies • Saw • Saw natural engineering prejudice by the carriers natural prejudice that REIT’s want more tenants • Small Cells support more capacity and have less visual impact • Neutral Host Infrastructure is the only way to get ROI in rural • Wi-Fi • oDAS supports multiple ISP's and carriers from one node  supports multiple carriers from one node TOWN OFVAIL REACHED   OUT TO ASPEN…. Wednesday, July 3, 13
  • 97. • In • CCI • ToV • ToV submits proposal toToV September 2010 meets with Council to get approval & CCI negotiate P&S agreement completed June 2012 • Aspen Deploys Hub Site andVTC iDAS (Phase I) Sept 2012 • CCI signs up first Carrier March 2013 for oDAS • Construction begins this summer forVillages   TOV CHOOSE     TOWER CO Consideration - ToV gets newWi-Fi system and iDAS forVTC Wednesday, July 3, 13
  • 98. • Aggregate existing resources and make it easily available • Choose assets that solve coverage issues and needs • Need to create Simplicity in the agreement • Working withToV simplifies permitting and zoning • One • ToV  Power and Space Agreement covers 100+ sites! will protect the carriers Investment HELP FACILITATE THE SERVICE   PROVIDER TO INVEST Wednesday, July 3, 13
  • 99. A LIAISON WILL SIMPLIFY THE   PROCESS • ToV busy running their government - while for us this is all we do. • These technology decisions are very complicated and a lot of government decision makers will never understand it • Aspen is a subject matter expert -We have helped over 20 communities form Public Private Partnerships,Authorities and DDATIF districts - we see what works and what doesn’t • CustomTurnkey Solution - based on the laws and needs Wednesday, July 3, 13
  • 100. DISCUSSION       Jim Selby AspenWirelessTechnologies,Inc.   (408) 412-WiFi (9434)    jim@aspenwireless.net Wednesday, July 3, 13
  • 101. Thank  You  Sponsors! MountainConnect2013/ $3,000/Sponsor/ $1,500/Sponsors/ $500/Sponsors/ Wednesday, July 3, 13
  • 102. Mountain Connect Wednesday, July 3, 13
  • 103. 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 Wednesday, July 3, 13
  • 104.  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 Wednesday, July 3, 13
  • 105. • North Monarch Ridge will act as the Central Hub between Gunnison and Chaffee County Wednesday, July 3, 13
  • 106. 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 Wednesday, July 3, 13
  • 107. 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 Wednesday, July 3, 13
  • 108. 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 Wednesday, July 3, 13
  • 109. Game Changing Technologies Wednesday, July 3, 13
  • 110. 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 Wednesday, July 3, 13
  • 111. 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 Wednesday, July 3, 13
  • 112. Questions??? Wednesday, July 3, 13
  • 113. Wednesday, July 3, 13
  • 114. Feasibility Study for a Fiber To The Premises System Wednesday, July 3, 13
  • 115. SERVICE AVAILABILITY The SLVREC service area can be characterized as: • Very limited availability of wireline cable TV • Limited availability of wireline Internet access 97 24% 23% 53% Both  Available Cable  TV  only   Broadband  Only 81% 19% Residency  Status Year  Round Seasonal Wednesday, July 3, 13
  • 116. VIDEO SERVICES PURCHASING BEHAVIOR  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) 98 3% 72% 10% 4% 11% Cable Satellite Off  Air Online   Other/None 0 0.175 0.350 0.525 0.700 $20   $40   $60   $80   $100  +Don't  Know Monthly  Pay  TV  Spend 0% 13% 25% 38% 50% One Two Three Four Five  or  More Number  of  TV  Sets  in  the  Home All  Pay  TV Wednesday, July 3, 13
  • 117. TRADITIONAL VIDEO SERVICES  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% 99 20% 80% Basic  Cable Digital  Cable 63% 30% 7% Incidence  of  High  Defini;on  TV  (among  all  pay  TV  users) High  Def Standard  Def Don't  Know Wednesday, July 3, 13
  • 118. WIRELINE PHONE MARKET SHARE  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 100 24% 66% 9% 2% None 1 2 3  or  More Number  of  Phone  Lines  in  the  Home 65% 32% 17% 21% 12% 9% Households  Without  Wireline  Phone  Service  by  Age Wednesday, July 3, 13
  • 119. INTERNET SERVICE PURCHASING BEHAVIOR  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% 101 14.5% 7.5% 2.7% 75.2% Incidence  of  Internet  Households No  PC PC  without  Internet Dial  Up Broadband 4% 43% 5% 34% 15% Internet  Market  Share  (Households) Dial  Up DSL Cable  Modem Satellite Fixed  Wireless Other Wednesday, July 3, 13
  • 120. INTERNET  SERVICE  PURCHASING  BEHAVIOR  Market  share  reflects  the  lack  of  viable   terrestrial  access  technology  for  many   homes  Stated  average  monthly  Internet  spend:  ResidenDal:  $46 102 5% 41% 33% 14% 4% 3% 9% 58% 19% 1% 9% 4% Fiber  Op0c Cable  Modem DSL Satellite Fixed  Wireless Dial  Up Don't  Know Internet  Access  Technology  Centris  Research:  April  2011  Home  Media  Magazine  (sample  40k  US  HHs) SLV NaDonal 0% 10% 20% 30% 40% $20   $30   $40   $50   >  $50 Monthly  Internet  Spend Wednesday, July 3, 13
  • 121. ATTRIBUTE IMPORTANCE 103 0 1.3 2.5 3.8 5.0 2.4 3.6 4.2 4.4 4.5 4.7 Brand Number  of  TV  ChannelsInternet  Speed Price Customer  Service Reliability Importance  Ra;ng  of  Select  Broadband  Service  Amributes  (Mean  Ra;ng  on  a  1-­‐5  Scale) Wednesday, July 3, 13
  • 122. IMPORTANCE OF DOWNLOAD VS. UPLOAD 104 18% 3% 73% Download  Most  Important Upload  Most  Important Both  Important Wednesday, July 3, 13
  • 123. CUSTOMER NEEDS 105 34% 32% 20% 20% 6% 5% Lower  Prices Increased  Internet  Speed Nothing Reliability Channel  Selec0on Customer  Service Q40:  “What  would  you  like  to  see  most  improved  from  your  current  broadband  services?” Wednesday, July 3, 13
  • 124. BENCHMARKED CUSTOMER NEEDS 106 47% 22% 16% 13% 13% 8% 43% 5% 17% 10% 11% 13% 34% 32% 20% 6% 20% 5% Lower  Prices Increased  Internet  Speed Nothing Channel  Selec0on Reliability Customer  Service Siloam  Springs Opelika,  AL San  Luis  Valley Wednesday, July 3, 13
  • 125. Technology Strategy Base Electric Operations Wednesday, July 3, 13
  • 126. ELECTRIC SYSTEM COMMUNICATION REQUIREMENTS  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 108 Wednesday, July 3, 13
  • 127. SLVREC COVERAGE OVERVIEW 109 Wednesday, July 3, 13
  • 128. Technology Strategy Broadband Services Wednesday, July 3, 13
  • 129. FIBER TO THE PREMISES (FTTP)  Why  FTTP?  Gold  standard  for  local  broadband  services  distribu0on  Technology  is  far  superior  to  any  other  op0on  now  and  in  the  future  Gigabit  Passive  Op0cal  Network  assumed  for  new  network  GPON  commercially  available  from  mul0ple  suppliers  Mature  technology  with  millions  of  units  shipped  Standard  GPON  architecture  1:32  spli_ers  deployed  in  centralized  split  network  One  spli_er  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)  loca0on Wednesday, July 3, 13
  • 130. RETAIL BROADBAND SERVICES  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 Wednesday, July 3, 13
  • 131. SERVICES  INFRASTRUCTURE  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  facili0es Wednesday, July 3, 13
  • 132. LOCAL  DISTRIBUTION  NETWORK  Spli_er  cabinets  Placed  in  serving  areas  between  32  and  260  homes  and  businesses  Provides  point  of  cross  connec0on  from  NOC  to  the  home  via  spli_er  Distribu0on  fiber  Distribu0on  fiber  connects  subscribers  to  their  spli_er  cabinet  Up  to  six  cables  connect  to  each  spli_er  cabinet  Cables  sized  to  serve  the  homes  and  businesses  passed  Network  access  points  (NAPs)  NAPs  a_ach  to  the  distribu0on  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 Wednesday, July 3, 13
  • 133. Thank  You  Sponsors! MountainConnect2013/ $3,000/Sponsor/ $1,500/Sponsors/ $500/Sponsors/ Wednesday, July 3, 13
  • 134. 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 Wednesday, July 3, 13
  • 135. Mountain Connect 2013 www.parcconline.org Wednesday, July 3, 13
  • 136. Testing Timetable  Window (20 Days) --- All kids tested Wednesday, July 3, 13
  • 137. Broadband  Minimum Specs 2014-2015, Maybe 2015-2016  Recommended 2018-2019 Broadband  Byte or Bit? Wednesday, July 3, 13
  • 138. Desktop Requirements Wednesday, July 3, 13
  • 139. Tablet Requirement Wednesday, July 3, 13
  • 140. 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 Wednesday, July 3, 13
  • 141. 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 Wednesday, July 3, 13
  • 142. E-rate for Infrastructure Colorado  Department  of  Education DeLilah  Collins State  E-­‐rate  Coordinator Wednesday, July 3, 13
  • 143.  Overview  What’s  eligible  for  discounts  Roles  Priority  2  –  Internal  Connec0ons/Basic  Maintenance  of  Internal   Connec0ons  Health  of  the  program Discussion Topics Wednesday, July 3, 13
  • 144.  What  is  E-­‐rate? Program  that  helps  ensure  that  schools  and  libraries  can  obtain   telecommunica0ons  and  Internet  access  at  affordable  rates FCC Universal  Service  Fund  Who  can  apply? Public/Private  Schools,  Public  Libraries,  Head  Start,  Juvenile  Jus0ce,   Consor0um  How  much  money  can  an  applicant  receive? Discounts  range  from  20%  -­‐  90%  of  the  total  cost  of  services Overview Wednesday, July 3, 13
  • 145. • Priority  1  (P1):  funded  first –Internet  Access   –Telecommunica0ons • Priority  2  (P2):  funding  starts  with  neediest  applicants –Internal  Connec0ons   –Basic  Maintenance  of  Internal  Connec0ons   What is funded? Wednesday, July 3, 13
  • 146. • Priority  1  (P1):  funded  first –Internet  Access   –Telecommunica0ons • Priority  2  (P2):  funding  starts  with  neediest  applicants –Internal  Connec0ons   –Basic  Maintenance  of  Internal  Connec0ons   What is funded? Wednesday, July 3, 13
  • 147.  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  compe00ve  bidding  process  File  FCC  Form  471  and  Item  21  a_achment  Get  technology  plan  approved  File  FCC  Form  486  Select  invoice  method  (BEAR  or  SPI)  /  File  BEARs  Retain  documenta0on Applicant Role Wednesday, July 3, 13
  • 148.  Respond  to  FCC  Forms  470  and  RFPs  Nego0ate  and  sign  contracts  for  contracted  services  Assist  with  preparing  Item  21  a_achments  Provide  technical  answers  during  applica0on  review  on   ques0ons  regarding  specific  goods  and  services  requested,  but   NOT  on  compe00ve  bidding  File  FCC  Form  473  (SPAC  Form)  File  SPIs  and/or  approve  BEARs  Retain  documenta0on Service Provider Role Wednesday, July 3, 13
  • 149.  Service  Providers  Can:  Refer  applicants  to  exisDng   sources  (e.g.,  state  DOE  or   state  library,  public  website)   for  help  Offer  NEUTRAL  advice  Can  offer  product   demonstraDons  Can  provide  informaDon   about  product  offerings  Can  refer  applicants  with   quesDons  to  exisDng  sources   of  informaDon  Service  Providers  CANNOT:    Write  the  applicant’s   technology  plan  Assist  in  the  wriDng  or   preparaDon  of  the  applicant’s   technology  plan  Cannot  provide  sample  RFPs   or  RFP  templates  to   applicants  Cannot  offer  giWs  outside  of   the  excepDons  provided  in   the  program’s  giW  rules Do’s and Don'ts Wednesday, July 3, 13
  • 150.  Support  for  equipment  and  cabling  onsite  that  transport  info  to   classrooms  or  public  rooms  of  a  library  Subject  to  the  Two-­‐in-­‐Five  Rule  En00es  can  only  receive  funding  every  two  out  of  five  years Internal Connections Wednesday, July 3, 13
  • 151. Internal Connections Wednesday, July 3, 13
  • 152. Internal Connections Wednesday, July 3, 13
  • 153. 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  func0on.   This  equipment  is  eligible  ONLY  as  Internal  Connec0ons  (Priority  2).   Wednesday, July 3, 13
  • 154. VoIP A  gateway  may  be  leased  with  eligible  Priority  1  VoIP  service.   A  gateway  is  considered  a  single  basic  termina0ng  device.   Wednesday, July 3, 13
  • 155.  Priority  2  –  VoIP  components  are  eligible. Includes:    VoIP  phone  system,    VoIP  router  and/or  switches,  and    Soyware  licenses  for  the  func0oning  of  the  IP  telephone  devices.   Excludes:    End-­‐user  devices  e.g.  IP  phones  and  Soyphones.   VoIP Wednesday, July 3, 13
  • 156.  Allows  for  support  for  lit  or  dark  fiber,  as  a  priority  one  service,   from  any  en0ty    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 Wednesday, July 3, 13
  • 157.  Maintenance  costs  of  dark  fiber  and  installa0on  costs  to  hook  up   the  dark  fiber  are  eligible   This  includes  charges  for  installa0on  within  the  property  line  (see   eligibility  matrix)    Modula0ng  electronics  for  leased  dark  fiber  are  not  eligible   Eligible  only  as  applicant  owned  priority  2  if  it  meets  the  defini0on   of  an  internal  connec0on.  If  being  used  for  LAN  traffic  it  is  eligible;  if   WAN,  not  eligible.   Leased Dark Fiber Wednesday, July 3, 13
  • 158.  Special  Construc0on  charges  to  build  out  connec0ons  from   applicants’  facili0es  to  an  off-­‐premise  fiber  network  are  NOT   eligible.   Leased Dark Fiber Wednesday, July 3, 13
  • 159. Dark Fiber Install and Maintenance Matrix Wednesday, July 3, 13
  • 160.  Some  examples  of  not  eligible  special  construc0on  charges   include:   Design  and  engineering  costs,   Project  management  costs,   Digging  trenches,  and   Laying  fiber   Leased Dark Fiber Wednesday, July 3, 13
  • 161.  Allows  for  support  for  basic  maintenance  of  eligible  internal   connec0ons.   Examples:    Repair  and  upkeep  of  eligible  hardware    Wire  and  cable  maintenance    Basic  technical  support    Configura0on  changes   Basic Maintenance of Internal Connections Wednesday, July 3, 13
  • 162.  Agreements  or  contracts  must  state  the  eligible  components   covered  by  make,  model  and  loca0on.    Service  must  be  delivered  within  the  July  1st  to  June  30th   0meframe.    Two-­‐in-­‐Five  Rule  does  not  apply  to  BMIC.   Basic Maintenance of Internal Connections Wednesday, July 3, 13
  • 163.  Unbundled  warran0es  are  NOT  eligible.    Unbundled  warran0es  allow  for  broken  equipment  to  be  fixed  or   if  it  is  beyond  repair,  replaced.    Unbundled  warran0es  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  0ed  to  actual  service  performed   Basic Maintenance of Internal Connections Wednesday, July 3, 13
  • 164.  BMIC  costs  must  be  a  bona  fide  request.   It  is  not  reasonable  to  es0mate  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   Basic Maintenance of Internal Connections Wednesday, July 3, 13
  • 165.  Priority  1  Priority  2  Priority  2  –  Basic  Maintenance  of  Internal  Connec0ons  Miscellaneous    Special  Eligibility  Condi0ons  Glossary Eligible Services List Wednesday, July 3, 13
  • 166.  Cabling/Connectors  Circuit  Cards  Data  Distribu3on  Access  Points,  hubs,  network  switches,   routers  Data  Protec3on  Firewall,  Proxy  Server,  Tape  Backup,  VPN,    Interfaces,  Gateways,  Antennas  Servers  DHCP  DNS  E-­‐mail  Firewall  Proxy  Server    SoKware    Network  Opera3ng  System  SoKware  E-­‐mail  Client  Access  Licenses  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  Documenta3on  System  Improvements  and  upgrades Eligible Services List – Priority 2 Wednesday, July 3, 13
  • 167.  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 Wednesday, July 3, 13
  • 168.  Fund  will  be  indexed  for  infla0on  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 Wednesday, July 3, 13
  • 169. Questions? DeLilah  Collins State  E-­‐rate  Coordinator collins_d@cde.state.co.us 303.866.6850 Wednesday, July 3, 13
  • 170. Thank  You  Sponsors! MountainConnect2013/ $3,000/Sponsor/ $1,500/Sponsors/ $500/Sponsors/ Wednesday, July 3, 13
  • 171. The  SECOM  Story Wednesday, July 3, 13
  • 172. Who  are  ya  and  whadia  doin  here? • Richard  Wilson,  Chief  Execu0ve  Officer,   Southeast  Colorado  Power  Associa0on • 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 Wednesday, July 3, 13
  • 173. Overview • Southeast  Colorado  Power  AssociaDon  (SECPA)  –  Formed  in  1937  as  a  not-­‐ for-­‐profit,  member  owned  electric  uDlity • REA’s  were  formed  because  large  electric  uDliDes  at  that  Dme  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 Wednesday, July 3, 13
  • 174. 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  acDve  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  faciliDes  and  2  community  colleges • In  1998,  SECPA  was  approached  by  the  Colorado  community  college  system  to  seek   parDcipaDon  in  a  pilot  project,  “Connect  Colorado”,    with  a  goal  and  vision  to  provide   high  speed  internet  and  distance  learning  services  via  broadband   telecommunicaDons  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  acDve  partner  in  this  vision • Several  scenarios  were  discussed  and  it  was  finally  decided  that  a  fiber  opDc   backbone  was  the  best,  albeit  not  the  cheapest,  soluDon Wednesday, July 3, 13
  • 175. 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  aforemenDoned  schools  etc.  and  more • In  late  1999,  SECOM,  a  Colorado  CompeDDve  Local  Exchange   Carrier  (CLEC),  was  born  as  an  operaDng  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  opDc  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  naDonwide   carriers Wednesday, July 3, 13
  • 176. SECOM  Service  Area:  Rural  and  Remote   Wednesday, July 3, 13
  • 177. Need  10  Gbps+  in  KIM  (pop.  68)? Wednesday, July 3, 13
  • 178. Industry  and  Area  Significance • DisrupDve  Pricing:  IniDal  Schools  Standard  offering  Point  to  Point   (building  to  building)  fiber  connecDons  for  $125/month  or  $1.25/ Mbps/month  (be#er  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  communicaDons   service  provider • Uses  primarily  aerial  and  buried  fiber,  plus  microwave  in  some   cases,  as  middle  mile  alternaDve  to  the  telephone  company Wednesday, July 3, 13
  • 179. Industry  and  Area  Significance  –  Con’t • Offers  opDcal  wavelengths  to  large  bandwidth  users  as   alternaDve  to  telephone  company • Fiber  to  the  premise  (FTTX)    Both  business  and   residenDal  customers  with  FTTX  are  Gigabit  ready. • Fixed  wireless  as  last  mile  alternaDve  to  telephone   company • Offers  Analog  and  VoIP  and  hosted  PBX  services  as     alternaDve  voice  services  to  telephone  company   Wednesday, July 3, 13
  • 180. Significance  to  Our  Communi0es • Currently  serves,  with  E-­‐RATE,  26  school   districts  (nearly  15%  of  ALL  Colorado  school   districts) • 2  Board  of  Coopera0ve  Educa0on  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 Wednesday, July 3, 13
  • 181. Significance  to  our  CommuniDes–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  insDtuDons   • Our  schools  are  capable  of  the  bandwidth   recommendaDons  for  the  2015  online  TCAP   tesDng.  Are  yours? Wednesday, July 3, 13
  • 182. Economic  Benefits • Provided  needed  ILEC  CompeDDon   • Provides  affordable  middle  mile  transport  for  other   area  ISP’s,  increasing  compeDDon • Employees  22  inside  and  outside  personnel  and  sDll   growing • Generate  important  payroll  and  property  tax  revenue   for  rural  counDes • 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. Wednesday, July 3, 13
  • 183. Significance  to  Colorado • Provided  a  strong  example  for  other  rural  electric  co-­‐ops  and  like-­‐ minded  enDDes  to  provide  enhanced  services  to  their  communiDes • Leverages  exisDng  infrastructure  (power  lines,  rights-­‐of  way  and   outside  operaDons  experDse)  to  improve  the  broadband   environment  of  rural  Colorado • Leverages  leading  edge  technology  to  improve  broadband   environment  of  Southeast  Colorado.    Also,  electric  uDliDes  are   increasingly  using  such  technology.    Technology  such  as: – Aerial/buried  fiber  –  Gigabit+  Speeds – Fixed  wireless  –  CompeDDve  wireless  internet  products – VoIP  –  Analog  with  Advanced  Features • Sustainable Wednesday, July 3, 13
  • 184. Conclusion • SECOM  offers  a  successful  model  for  rural   communi0es  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   educa0on,  medical  and  community  anchor   ins0tu0ons  for  nearly  15  years – Visit  us  at  www.secom.net  and  www.secpa.com Wednesday, July 3, 13
  • 185. QuesDons? Wednesday, July 3, 13
  • 186. ©StrategicNetworksGroup,Inc.2013 No  Field  of  Dreams:   We’re  Building,  But  Who’s  Coming… And  what  are  they  doing?   Wednesday, July 3, 13
  • 187. ©StrategicNetworksGroup,Inc.2013 www.sngroup.com Who  Is  This  Guy? • CMO/Founding Partner of The Think Agency • We support tech firms by serving as their virtual marketing team, including: 168 Wednesday, July 3, 13
  • 188. ©StrategicNetworksGroup,Inc.2013 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 169 Wednesday, July 3, 13
  • 189. ©StrategicNetworksGroup,Inc.2013 Economic  ROI  from  Public  Investments  in  BroadbandEconomic  ROI  from  Public  Investments  in  Broadband Contribu0on  to  GDP 10    x    the  ini;al  public  investment Fiscal  revenues  increase 3    to    4    x  the  ini;al  public  investment 170 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. Wednesday, July 3, 13
  • 190. ©StrategicNetworksGroup,Inc.2013 171 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 ©StrategicNetworksGroup,Inc.2012 Small businesses create 12x more Internet jobs relative to large firms Wednesday, July 3, 13
  • 191. ©StrategicNetworksGroup,Inc.2013 So  What  Now?   172 Wednesday, July 3, 13
  • 192. ©StrategicNetworksGroup,Inc.2013 So  What  Now?   172 Wednesday, July 3, 13
  • 193. ©StrategicNetworksGroup,Inc.2013 So  What  Now?   172 You  have  an  awesome   infrastructure…  but   insufficient  adopFon  and   uFlizaFon…  so  what  do  you   do?   Wednesday, July 3, 13
  • 194. ©StrategicNetworksGroup,Inc.2013 So  What  Now?   172 You  have  an  awesome   infrastructure…  but   insufficient  adopFon  and   uFlizaFon…  so  what  do  you   do?   Wednesday, July 3, 13
  • 195. ©StrategicNetworksGroup,Inc.2013 So  What  Now?   172 You  have  an  awesome   infrastructure…  but   insufficient  adopFon  and   uFlizaFon…  so  what  do  you   do?   Have  a  catch!   Wednesday, July 3, 13
  • 196. ©StrategicNetworksGroup,Inc.2013 173   Laissez-­‐faire    (A) Driving  U;liza;on    (B) Year  One Year  Three 10%  uptake 12%  uptake 18%  uptake 35%  uptake Wai;ng…  versus  teaching * Financial profile of typical fiber network build. Source: Ventura Team LLP, www.venturateam.com Impact of Driving Utilization Wednesday, July 3, 13
  • 197. ©StrategicNetworksGroup,Inc.2013 174 “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” Wednesday, July 3, 13
  • 198. ©StrategicNetworksGroup,Inc.2013 175 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. Wednesday, July 3, 13
  • 199. ©StrategicNetworksGroup,Inc.2013 176 Increased  UDlizaDon  Directly   Correlates  to  Revenue  Growth Businesses  underu;lizing  the  Internet  miss  significant  revenue  opportuni;es Source:  SNG  Digital  Economy  Database  n  =  1,202  from  NC,  VA  and  KY  collected  in  2010-­‐12 Wednesday, July 3, 13
  • 200. ©StrategicNetworksGroup,Inc.2013 177 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 Wednesday, July 3, 13
  • 201. ©StrategicNetworksGroup,Inc.2013 177 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 BIGGES T BENEFIT S Wednesday, July 3, 13
  • 202. ©StrategicNetworksGroup,Inc.2013 How  Can  You  Achieve  U;liza;on? Lead  with  the  BENENIFITS  of  ApplicaDons Wednesday, July 3, 13
  • 203. ©StrategicNetworksGroup,Inc.2013 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  U0liza0on 1. Internet-enabled applications and processes; 2. Between 2008-2011 179 Wednesday, July 3, 13
  • 204. ©StrategicNetworksGroup,Inc.2013 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 created and distributed by SNG online tools 180 Wednesday, July 3, 13
  • 205. ©StrategicNetworksGroup,Inc.2013 www.sngroup.com DEi  Impact  Calculator -­‐  choose  e-­‐strategy  based  on  ROI  -­‐   181 ©StrategicNetworksGroup,Inc.2012 Source: SNG Digital Economy Database n = 27,200 1. Select your organization characteristics 2. Select your actual and needed e-Solutions Wednesday, July 3, 13
  • 206. ©StrategicNetworksGroup,Inc.2013 www.sngroup.com DEi  Impact  Calculator -­‐  choose  e-­‐strategy  based  on  ROI  -­‐   182 ©StrategicNetworksGroup,Inc.2012 4. Details of potential revenues and cost savings 3. See your potential benefits from increased utilization Source: SNG Digital Economy Database n = 27,200 Wednesday, July 3, 13
  • 207. ©StrategicNetworksGroup,Inc.2013 183 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 Wednesday, July 3, 13
  • 208. ©StrategicNetworksGroup,Inc.2013 184 155 Thank-­‐you Let’s connect ! www.sngroup.com Doug  Adams,  VP  Communica;ons Strategic  Networks  Group,  Inc. 720.412.7876 dadams@sngroup.com www.thethinkagency.com Wednesday, July 3, 13
  • 209. Thank  You  Sponsors! MountainConnect2013/ $3,000/Sponsor/ $1,500/Sponsors/ $500/Sponsors/ Wednesday, July 3, 13
  • 210. Internet3 Telecommunications Cooperative 90% social, 10% technical Wednesday, July 3, 13
  • 211.  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 Wednesday, July 3, 13
  • 212. Lets Put It Together! Wednesday, July 3, 13
  • 213. i3: Assemble The Parts 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 Wednesday, July 3, 13
  • 214. i3 Membership Has Privileges 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 Wednesday, July 3, 13
  • 215. i3 Is Nothing New 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 Wednesday, July 3, 13
  • 216. Moving Communities Forward 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 Wednesday, July 3, 13
  • 217. The Next Step 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? Wednesday, July 3, 13
  • 218. Thank you ! Frank Ohrtman 720-839-4063 franklinohrtman@gmail.com Audrey Danner 970-321-2021 audreydanner@gmail.com Jeff Gavlinski 970-382-1799 jeffgavlin@gmail.com More info + FREE ebook: “I’ll Vote forYou IfYou Make My Netflix Work” at http://www.i3coop.org Wednesday, July 3, 13
  • 219. MountainConnect 2014 June 8-10, 2014 (tentative) Sponsorships available! 195 Wednesday, July 3, 13
  • 220. Thank You Sponsors! MountainConnect2013/ $3,000/Sponsor/ $1,500/Sponsors/ $500/Sponsors/ Wednesday, July 3, 13