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Internet3	
  Telecommunica0ons	
  
Coopera0ve	
  Presents	
  
MountainConnect	
  2013
Breckenridge,	
  CO
June	
  16-­‐17,	
  2013
Main	
  Street	
  Sta;on
Wednesday, July 3, 13
Thank	
  You	
  Sponsors!
MountainConnect2013/
$3,000/Sponsor/
$1,500/Sponsors/
$500/Sponsors/
Wednesday, July 3, 13
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
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
Keynote:	
  Dr.	
  Rick	
  Smith
5
Wednesday, July 3, 13
COLLABORATION
The Wave of the Future !!!
Wednesday, July 3, 13
BROADBAND
CONNECTIVITY ??
Wednesday, July 3, 13
BROADBAND
CONNECTIVITY ??
Wednesday, July 3, 13
BROADBAND
CONNECTIVITY ??
Wednesday, July 3, 13
The Great Divide
Wednesday, July 3, 13
The Great Divide
Wednesday, July 3, 13
The Great Divide
Wednesday, July 3, 13
The Great Divide
Wednesday, July 3, 13
The Great Divide
Wednesday, July 3, 13
BROADBAND COVERAGE
Wednesday, July 3, 13
PUBLIC SECTOR
• Service Oriented
Partner Perspectives
Wednesday, July 3, 13
PUBLIC SECTOR
• Service Oriented
• Tax Based Budgeting
Partner Perspectives
Wednesday, July 3, 13
PUBLIC SECTOR
• Service Oriented
• Tax Based Budgeting
PRIVATE SECTOR
• Service Oriented
Partner Perspectives
Wednesday, July 3, 13
PUBLIC SECTOR
• Service Oriented
• Tax Based Budgeting
PRIVATE SECTOR
• Service Oriented
• Return on Investment Budgeting
Partner Perspectives
Wednesday, July 3, 13
Road to
Broadband Access
Wednesday, July 3, 13
Broadband	
  	
  Infrastructures
Wednesday, July 3, 13
Broadband	
  Prescrip0on
Wednesday, July 3, 13
Partnerships
Wednesday, July 3, 13
Partnerships
Public - Public
Public - Private
Wednesday, July 3, 13
Tim	
  Miles:	
  Carrier	
  Neutral	
  
Loca0ons
Low	
  cost	
  means	
  of	
  gaining	
  a	
  
redundant,	
  abundant	
  and	
  affordable	
  
broadband	
  environment
15
Wednesday, July 3, 13
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
My Buildings
Approx: 2200 Kids
Buildings: 6 (2-Elemtary, 1-Middle, 1-High, 1-Admin, 1-Trans)
Wednesday, July 3, 13
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
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
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
What	
  Is	
  A	
  Carrier	
  Neutral	
  
Loca0on
Be#er	
  Internet	
  for	
  Everyone
Wednesday, July 3, 13
SB	
  152
• h_p://www.leg.state.co.us/clics2005a/csl.nsf/billcontainers/
Wednesday, July 3, 13
Wednesday, July 3, 13
Problem	
  =	
  Slow,	
  Expensive,	
  Unreliable	
  	
  
Wednesday, July 3, 13
Fix	
  It	
  =	
  Compe00on	
  =	
  CNL
Wednesday, July 3, 13
Wednesday, July 3, 13
Wednesday, July 3, 13
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
RoI:	
  Savings	
  on	
  Network	
  Outages
Wednesday, July 3, 13
RoI:	
  SSSD	
  Savings	
  on	
  Bandwidth
*Es0mate	
  of	
  1	
  Gbps	
  service	
  from	
  EagleNet
Wednesday, July 3, 13
RoI:	
  Summary
Wednesday, July 3, 13
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
Redundant	
  Middle	
  Mile
Wednesday, July 3, 13
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
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
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
Ralph	
  Abrams
Crestone	
  Telecom	
  and
Colorado	
  Central	
  Telecom
DIY	
  Community	
  Broadband
37
Wednesday, July 3, 13
Wednesday, July 3, 13
39
Wednesday, July 3, 13
40
Wednesday, July 3, 13
41
Wednesday, July 3, 13
42
Wednesday, July 3, 13
43
Wednesday, July 3, 13
44
Wednesday, July 3, 13
45
Wednesday, July 3, 13
46
Wednesday, July 3, 13
47
Wednesday, July 3, 13
48
Wednesday, July 3, 13
Anthony	
  Edwards
Crowdfunding	
  for	
  Rural	
  Broadband
Wednesday, July 3, 13
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
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
What is Crowdfunding?
Wednesday, July 3, 13
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
The Rewards/Donation Trend
Wednesday, July 3, 13
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
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
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
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
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
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
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
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
JOBS Act: CROWDFUND Act of 2012
Wednesday, July 3, 13
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
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
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
Investor Protections: Equity Crowdfunding
Wednesday, July 3, 13
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
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
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
Conclusion
Wednesday, July 3, 13
Conclusion
 Crowdfunding is a legitimate option for communities
to expand Broadband Services.
Wednesday, July 3, 13
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
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
Thanks	
  Sponsors!
Wednesday, July 3, 13
TOWN OFVAIL
HOW WE MADE COMMUNITY
BROADBAND HAPPEN
By Jim Selby
AspenWirelessTechnologies,Inc.
(970) 948-9998
jim@aspenwireless.net
Wednesday, July 3, 13
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
TOWN INFRASTRUCTURE
Orange Dots =Wi-Fi
Green Dots = Cell
Wednesday, July 3, 13
“Small Cell”Outdoor DAS &Wi-Fi
	
   The future ofWireless
	
   RESULT:
22 Gbps of data Injection!
Wednesday, July 3, 13
• 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
•
• 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
• 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
• 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
• 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
• 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
• 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
• 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
• 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
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
DISCUSSION
	
   	
  	
   Jim Selby
AspenWirelessTechnologies,Inc.
	
   (408) 412-WiFi (9434)
	
   	
  jim@aspenwireless.net
Wednesday, July 3, 13
Thank	
  You	
  Sponsors!
MountainConnect2013/
$3,000/Sponsor/
$1,500/Sponsors/
$500/Sponsors/
Wednesday, July 3, 13
Mountain Connect
Wednesday, July 3, 13
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
 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
• North Monarch Ridge will act as the
Central Hub between Gunnison and
Chaffee County
Wednesday, July 3, 13
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
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
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
Game Changing
Technologies
Wednesday, July 3, 13
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
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
Questions???
Wednesday, July 3, 13
Wednesday, July 3, 13
Feasibility Study
for a
Fiber To The Premises System
Wednesday, July 3, 13
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
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
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
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
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
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
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
IMPORTANCE OF
DOWNLOAD VS. UPLOAD
104
18%
3%
73%
Download	
  Most	
  Important Upload	
  Most	
  Important Both	
  Important
Wednesday, July 3, 13
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
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
Technology Strategy
Base Electric Operations
Wednesday, July 3, 13
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
SLVREC COVERAGE OVERVIEW
109
Wednesday, July 3, 13
Technology Strategy
Broadband Services
Wednesday, July 3, 13
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
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
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
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
Thank	
  You	
  Sponsors!
MountainConnect2013/
$3,000/Sponsor/
$1,500/Sponsors/
$500/Sponsors/
Wednesday, July 3, 13
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
Mountain Connect 2013
www.parcconline.org
Wednesday, July 3, 13
Testing Timetable
 Window (20 Days) --- All kids tested
Wednesday, July 3, 13
Broadband
 Minimum Specs 2014-2015, Maybe 2015-2016
 Recommended 2018-2019
Broadband
 Byte or Bit?
Wednesday, July 3, 13
Desktop Requirements
Wednesday, July 3, 13
Tablet Requirement
Wednesday, July 3, 13
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
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
E-rate for Infrastructure
Colorado	
  Department	
  of	
  Education
DeLilah	
  Collins
State	
  E-­‐rate	
  Coordinator
Wednesday, July 3, 13
 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
 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
• 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
• 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
 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
 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
 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
 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
Internal Connections
Wednesday, July 3, 13
Internal Connections
Wednesday, July 3, 13
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
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
 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
 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
 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
 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
Dark Fiber Install and Maintenance
Matrix
Wednesday, July 3, 13
 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
 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
 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
 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
 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
 Priority	
  1
 Priority	
  2
 Priority	
  2	
  –	
  Basic	
  Maintenance	
  of	
  Internal	
  Connec0ons
 Miscellaneous	
  
 Special	
  Eligibility	
  Condi0ons
 Glossary
Eligible Services List
Wednesday, July 3, 13
 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
 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
 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
Questions?
DeLilah	
  Collins
State	
  E-­‐rate	
  Coordinator
collins_d@cde.state.co.us
303.866.6850
Wednesday, July 3, 13
Thank	
  You	
  Sponsors!
MountainConnect2013/
$3,000/Sponsor/
$1,500/Sponsors/
$500/Sponsors/
Wednesday, July 3, 13
The	
  SECOM	
  Story
Wednesday, July 3, 13
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
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
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
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
SECOM	
  Service	
  Area:	
  Rural	
  and	
  Remote	
  
Wednesday, July 3, 13
Need	
  10	
  Gbps+	
  in	
  KIM	
  (pop.	
  68)?
Wednesday, July 3, 13
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
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
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
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
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
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
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
QuesDons?
Wednesday, July 3, 13
©StrategicNetworksGroup,Inc.2013
No	
  Field	
  of	
  Dreams:	
  
We’re	
  Building,	
  But	
  Who’s	
  Coming…
And	
  what	
  are	
  they	
  doing?	
  
Wednesday, July 3, 13
©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
©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
©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
©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
©StrategicNetworksGroup,Inc.2013
So	
  What	
  Now?	
  
172
Wednesday, July 3, 13
©StrategicNetworksGroup,Inc.2013
So	
  What	
  Now?	
  
172
Wednesday, July 3, 13
©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
©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
©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
©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
©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
©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
©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
©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
©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
©StrategicNetworksGroup,Inc.2013
How	
  Can	
  You	
  Achieve	
  U;liza;on?
Lead	
  with	
  the	
  BENENIFITS	
  of	
  ApplicaDons
Wednesday, July 3, 13
©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
©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
©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
©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
©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
©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
Thank	
  You	
  Sponsors!
MountainConnect2013/
$3,000/Sponsor/
$1,500/Sponsors/
$500/Sponsors/
Wednesday, July 3, 13
Internet3 Telecommunications
Cooperative
90% social, 10% technical
Wednesday, July 3, 13
 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
Lets Put It Together!
Wednesday, July 3, 13
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
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
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
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
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
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
MountainConnect 2014
June 8-10, 2014 (tentative)
Sponsorships available!
195
Wednesday, July 3, 13
Thank You Sponsors!
MountainConnect2013/
$3,000/Sponsor/
$1,500/Sponsors/
$500/Sponsors/
Wednesday, July 3, 13

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MountainConnect 2013 Presentations

  • 1. Internet3  Telecommunica0ons   Coopera0ve  Presents   MountainConnect  2013 Breckenridge,  CO June  16-­‐17,  2013 Main  Street  Sta;on 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
  • 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
  • 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
  • 34. Problem  =  Slow,  Expensive,  Unreliable     Wednesday, July 3, 13
  • 35. Fix  It  =  Compe00on  =  CNL 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
  • 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
  • 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
  • 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
  • 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
  • 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
  • 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
  • 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
  • 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
  • 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
  • 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
  • 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
  • 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
  • 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
  • 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
  • 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
  • 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
  • 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
  • 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