ISLAND WIDE BROADBAND NETWORK JULY 1 ST TOWN COUNCIL MEETING - - PowerPoint PPT Presentation

ISLAND WIDE BROADBAND NETWORK

JULY 1ST TOWN COUNCIL MEETING PREPARATION FOR A VOTE ON JULY 27, 2020 AT FINANCIAL TOWN MEETING

ISLAND WIDE BROADBAND NETWORK

WHAT WILL THE NETWORK PROVIDE?

 Fiber to the Premise (FTTP/FTTH) broadband network  Fiber connections to all residences and businesses that run with the other utility services

(underground or aerial)

 Indoor network termination equipment with power protection for all subscribers  Network electronics and software supporting network operations, performance monitoring and

high-quality support and troubleshooting for subscriber issues

 Multiple data service options, from 25Mbps to 1Gbps symmetric (best efforts or guaranteed)  Optional telephone services for residents and businesses, with E991 and provision for on-island

phone service in the event of connectivity loss to the mainland

 More robust services such as static IP addresses or distributed services (e.g., hotels) also available  FCC Lifeline Program support for low-income consumers

BI Broadband Vote July 27th

ISLAND WIDE BROADBAND NETWORK

WHERE ARE WE IN THE PROCESS?

 Shovel ready, with RFP responses in hand and a vendor team of Sertex and Crocker identified

 Sertex, formed in 1999, has in recent years focused on building broadband networks serving municipalities.

They are on the leading edge of telecommunications technology and committed to positive customer

• utcomes; Sertex successfully constructed the Town’s CAI Broadband Network

 Crocker Communications, a family owned/operated telecommunications company founded in 1956, has

been providing broadband (internet/telephone) services since 1994 and been part of several municipal network implementations; Crocker has a strong commitment to superior customer service and was the preferred vendor identified in the Town’s first RFQ process

 The network will be owned by the Town, operated and maintained by Sertex and Crocker

Communications, overseen by the Town through the Town Council and Broadband Committee and accounted for as an enterprise fund of the Town (like water and sewer)

 Capital equipment replacement program built into the economics to ensure ongoing network support and

infrastructure maintenance

 Awaiting the funding authorization to move forward

BI Broadband Vote July 27th

ISLAND WIDE BROADBAND NETWORK

BI Broadband Vote July 27th

Tax $23 Tax $23 Network O&M $32 DSL $73 Broadband $30 Telephone $18 Telephone $20 DirecTV $92 $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 Verizon DSL & Local Phone, DirecTV Town Broadband Internet & Voice Subscriber & Taxpayer Taxpayer only, No Service

Monthly Costs for a Representative Taxpayer and/or Subscriber

$105 $183

Paid to Crocker Paid to TNS with property tax bill Potential RDOF subsidy up to $9 monthly Tax based on $1m property value, 50/50Mbps broadband internet with two year contract.

WHAT WILL IT COST ME AS A TAXPAYER AND/OR CUSTOMER?

ISLAND WIDE BROADBAND NETWORK

WHAT IS THE PROJECT TIMELINE?

BI Broadband Vote July 27th

2021

Today Jul Sep Nov 2021 Mar May Jul

Make Ready

Aug 5 Feb 4

Fiber Optic Material Procurement

Oct 1

Underground Backbone

Nov 25 Jan 4 May 21

Aerial Backbone Construction

Sep 1 Dec 25

Underground Drop Construction

Apr 1

Customer Service Installation

Jun 23 Dec 1

Electronics Procurement

Jan 25 Mar 1 Jul 2

Headend Installation

Aug 3 Oct 26

Engineering & Pole Licensing

Jul 1 Jul 15

Short-Form Application

Oct 29

Rural Digital Opportunity Fund Auction 904

Bidding Begins

ISLAND WIDE BROADBAND NETWORK

WHAT IS THE TOWN ASKING FOR AT FTM?



Authorize borrowing of up to $8.0m comprised of



Up to $7.025m non-recurring costs for construction & implementation



Fiber backbone and laterals, drops to each premise on Block Island



Mainland connections, core equipment & transport electronics



Construction administration, pole licensing & network deployment



Up to $600k of installation costs for network equipment at each subscribed premise, recovered through subscribers



Up to $375k of first year operating costs recovered through subscribers



Initial installation, transport & administration



These figures allow for 100% participation (1700 drops and 1700 customers); actual take rates will determine final costs



There is no minimum take rate for the system to operate; subscription costs are fixed whether take rate is 60% or 90%



The Town may decide that the time is right to pursue the project in its entirety, or authorize moving forward only if successful in the RDOF auction or subject to other outside assistance

BI Broadband Vote July 27th

ISLAND WIDE BROADBAND NETWORK

WHAT IS THE RDOF AUCTION?

 Rural Digital Opportunity Fund (RDOF) is an FCC program providing up to $20.4b over 10 years for

broadband and voice services

 The winning bidder in each census block group will receive support annually for a total of 10 years  Based on prior FCC auction experience, the winning bid could be in the neighborhood of 70% of

the reserve price or $273k annually for Block Island

 The Auction is scheduled for October 2020  The financial and performance commitments involved for Sertex and Crocker to bid on Block

Island require that the Town commit to the project in advance of the Auction, hence the accelerated schedule

 Final reserve prices will be set just prior to the Auction; the Town is lobbying the FCC aggressively to

ensure that all eligible sites are included in the final reserve price

 Success in the RDOF auction will necessitate a 10 year contract with Sertex and Crocker, a longer

commitment than was initially preferred, but had been included in the RFP

BI Broadband Vote July 27th

ISLAND WIDE BROADBAND NETWORK

HOW CAN I FIND MORE INFORMATION?

 Public Information Sessions (dates tba)  New Shoreham Broadband Committee – Thursdays via Zoom  Email: broadband@new-shoreham.com  Island Wide Broadband FAQs (to be released shortly)  Facebook: Broadband Block Island  http://new-shoreham.com/displayboards.cfm?id=41  Financial Town Meeting: Monday, July 27, 2020 7pm BI Broadband Vote July 27th