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Internet pricing survey (v6)

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Internet pricing survey (v6)

  1. 1. Centerville’s Goals for UTOPIA • High Quality Infrastructure • Competitive Marketplace / Consumer Choice • Financially Self Sustaining
  2. 2. Macquarie’s Cost Comparison
  3. 3. What’s available on UTOPIA today? Competition.
  4. 4. Residential Pricing in Centerville (Data) Monthly Service (Internet Only) UTOPIA (assumes $25 lease or CUE) No Data Caps PPP Model (assumes utility fee of $19) Cable (introductory – regular rate) 300GB Data Cap DSL (introductory – regular rate) 150GB Data Cap Wireless (requires line-of- sight to a tower) 150GB Data Cap 1.5 Mbps $20 - $40 3.0 Mbps $19 (20GB cap) 5.0 Mbps $40 6.0 Mbps $50 7.0 Mbps $20 - $45 10 Mbps $45 15 Mbps $50 25 Mbps $55 $49 $30 - $67 50 Mbps $60-$65 $54-$59 $35 - $77 100 Mbps $60-$80 $54-$74 $115 1.0 Gbps $90-$100 $84-$94 Current UTOPIA Model Macquarie Incumbents For the true cost of providing internet service in Centerville, add an additional $8/month. This is the average amount each household pays into the General Fund for current UTOPIA obligations. With Macquarie, the $8/month most likely goes away due to revenue sharing after 3-5 years.
  5. 5. Residential Pricing in Centerville (D+V) Monthly Service (Internet + Voice) UTOPIA (assumes $25 lease or CUE) No Data Caps PPP Model (assumes utility fee of $19) Cable (introductory – regular rate) 300GB Data Cap DSL (introductory – regular rate) 150GB Data Cap Wireless (requires line-of- sight to a tower) 150GB Data Cap 1.5 Mbps $75 - $87 3.0 Mbps $29-$39 20GB Cap 5.0 Mbps $60 6.0 Mbps $70 7.0 Mbps $75 - $92 10 Mbps $65 15 Mbps $70 25 Mbps $75 $69 $50 - $87 50 Mbps $82 -$90 $76-$84 $55 - $97 100 Mbps $75-$105 $69-$97 $135 1.0 Gbps $105-$120 $99-$114 Current UTOPIA Model Macquarie Incumbents For the true cost of providing internet service in Centerville, add an additional $8/month. This is the average amount each household pays into the General Fund for current UTOPIA obligations. With Macquarie, the $8/month most likely goes away due to revenue sharing after 3-5 years.
  6. 6. Residential Pricing in Centerville -- TV Monthly Service (Internet + TV – basic package) UTOPIA (assumes $25 lease or CUE) No Data Caps PPP Model (assumes utility fee of $19) No Data Caps Cable (after introductory period) 300GB Data Cap 3.0 Mbps $65 6.0 Mbps $85 25 Mbps $100 50 Mbps $80 $74 $82 100 Mbps $100 $94 1.0 Gbps $110 $104 Monthly Service (Internet + Voice + TV – basic package) 25 Mbps $120 50 Mbps $105 $99 $190 100 Mbps $125 $119 1.0 Gbps $135 $129 Current UTOPIA Model Macquarie Incumbent
  7. 7. Google Fiber vs. Macquarie PPP Monthly Service UTOPIA Centerville PPP Model All Areas Google Fiber Provo Free Internet n/a 3/3 Mbps (20GB cap) 5/1 Mbps Data 100 Mbps Data $35-$55 $35 or less n/a 1 Gbps Data $64.95-$84.95 $65 or less $70 + Video $49.95 (~150 ch) TBD $50 (~200 ch) Monthly UTILITY Fee None $9-10 Apt $18-20 SF $36-40 Commercial $5.35 SF $10 Commercial $2,000 Industrial Installation Monthly Lease Fee $2,750 one time or $20 for 20 years or $30 lease None $30 Competition (Residential & Business Service Providers) 9 Residential 10+ Business 9 Residential 10+ Business 1 Residential 0 Business City General Fund: original UTOPIA Debt $8 $8 today dropping to $0 over time unknown Current UTOPIA Model Macquarie Google Fiber
  8. 8. Incumbent's Reactions to Competition (taken from PPP Report)
  9. 9. Citizen Joan – Landline only, no internet Current Situation: Uses a landline phone at a cost of $35 month. Savings: Citizen Joan will save $10/month and will now have basic internet access. Future Situation: Adds a phone line to the basic “free” option offered through Macquarie and now pays the utility fee of $19/month for 3/3Mbps Internet + $6 for a phone line for a total of $25.
  10. 10. Citizen John - No landline, cell phone only, only needs the internet – light user Current Situation: Uses DSL and pays the introductory price of $20/month for a year and then will pay $40/month thereafter for 1.5Mbps/896K service. Savings: Citizen John will pay about the same during the introductory period for better service. After one year, he’ll save $21/month. Future Situation: Decides to upgrade his speed to the basic “free” option offered through Macquarie and now pays the utility fee of $19/month for 3/3Mbps.
  11. 11. Citizen Joe - No landline, cell phone only, only needs the internet – medium user Current Situation: Uses cable for his internet and pays the introductory price of $30/month for a year and then will pay $67/month thereafter for 25/5Mbps service. Savings: Citizen Joe will pay $19/month more the first year for his internet service if he switches because of the promotional rate he is receiving from the cable provider. After one year, he’ll save $18/month. Future Situation: Decides to switch to an ISP on the fiber network. He pays the utility fee of $19/month and an additional $30/month for the 25/25Mbps service. He pays a total of $49/month.
  12. 12. Citizen Jack – Needs the internet and reliable phone service with unlimited calling Current Situation: Uses the local phone company for his DSL and phone. His plan that includes unlimited long distance has an introductory price of $75/month for a year and then goes up to $92/month thereafter for 7/1Mbps service. Savings: Citizen Jack will save $6/month the first year if he switches and $23/month thereafter for much faster speeds. Future Situation: Decides to switch to an ISP on the fiber network. He pays the utility fee of $19/month and an additional $50/month for the 100/100Mbps service and unlimited long distance. He pays a total of $69/month.
  13. 13. Citizen Jane – Needs the internet for gaming sons, phone service and video Current Situation: Only service fast enough is the cable company. She gets the “triple play” which comes with unlimited phone, basic cable and 50/10Mbps service for an introductory price of $90/month. After the first year, the price will go up to $147/month. Savings: Citizen Jane will pay $9/month more the first year if she switches and then save $48/month thereafter. Future Situation: Decides to switch to an ISP on the fiber network. She pays the utility fee of $19/month and an additional $80/month for the 50/50Mbps service, unlimited long distance and TV. She pays a total of $99/month.
  14. 14. Citizen Jamal – Serious gamer that needs unlimited phone service and a premium video package Current Situation: Only service fast enough is the cable company. He gets the “triple play” which comes with unlimited phone, basic cable and 105/20Mbps service for an introductory price of $200/month. After the first year, the price will go up to $250/month. Savings: Citizen Jamal will pay $9/month more for the first year if he switches and gets the faster speed and then save $41/month thereafter. Future Situation: Decides to switch to an ISP on the fiber network. He pays the utility fee of $19/month and an additional $180/month for the 100/100Mbps service, unlimited long distance and premium channels. He pays a total of $199/month. He decides to upgrade to the 1/1Gbps service for $10/month more.

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