Broadband Is Like Oxygen to Rural America What Technology and Companies Will Provide It?

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KIT CARSON ELECTRIC COOPERATIVE, INC. Broadband Is Like Oxygen to Rural America What Technology and Companies Will Provide It? Luis A. Reyes Jr., Chief Executive Officer & General Manager Kit Carson Electric Cooperative, Inc.

2 Objectives This session will examine the broadband needs of rural America. 1. Will Gigabit Networks or wireless services best meet the needs of the nation s rural communities? 2. What options are rural communities missing without good-quality broadband? 3. And when commercial providers are in short supply, how will non-profits, cooperatives and municipal broadband providers help fill the void? Hear the perspectives of a range of rural Internet providers.

3 Kit Carson Electric Cooperative Inc. About KCEC Kit Carson Electric Cooperative (KCEC) is a member owned non-profit Electric Distribution Cooperative formed in 1937 and incorporated in 1944. KCEC is one of 17 cooperatives that serve rural New Mexico communities, and is currently the second largest cooperative in the state of New Mexico. KCEC serves over 29,485 members in Taos, Colfax and Rio Arriba Counties. Owned by those we serve

4 Kit Carson Electric Cooperative Inc. KCEC currently owns and operates 7 MW of DG solar energy or 10% of our load is solar powered and operates the most advanced smart green grid in New Mexico. KCEC has also created three additional divisions to offer to our cooperative members; Internet Service, Telecommunications Service, and Propane Service. KCEC s most current project is the Fiber-to-the-Home. This project will provide high speed broadband to our surrounding rural communities.

5 About Kit Carson and our project Revolutionize Northern New Mexico communities with affordable and accessible high-speed broadband service and create a model for Rural Communities Greater prosperity and quality of life for: 20,500 households 3,600 businesses 183 critical community institutions 2 Native American Pueblos

6 Kit Carson Electric Cooperative: The Case for Broadband Economic Development Job creation (Clean & Sustainable) Business opportunities Sustainable economies Broadband based companies Taos Pueblo Bridge the Digital Divide Online learning Telemedicine Affordable access to All Public Safety Deploy NG911 High-Speed Advanced Infrastructure Medical community Research & education Local businesses Member Choice Real Time Power Monitoring Kit Carson Electric Cooperative Reliable Electric Grid AMI applications Smart Grid Services Efficient energy usage DG Integration (Renewables) Transforming to become an integrated provider is critical to securing future economic & technical prosperity

7 Project Schedule and Milestones Secure Member Input and Acceptance Secure $64M RUS funds to build and operate network Identify reliable partner responsible for network planning and design, deployment, maintenance and support Begin Construction Deliver 1 Gbps broadband service to home and business Connect Anchor Institutions Establish Redundancy and Reliability Complete Deployment and Start Smart Grid Project Offer Member Based Value Added Energy Programs 2012 2013 2014 2015

8 Requirements for Northern New Mexico and Kit Carson Oxygen to Rural America- FTTH Connectivity to the house Economic Development Engine Virtual Job Creation Regional Approach Speed & Price options Affordability & Accessibility to all Back office operations: - Customer care and billing - NOC Unbundled Services Netflix, Apple TV, etc. Voice (Voip) What else can the Network do for us? Smart Meters Smart Thermostats Energy Efficiency programs Peak load management Electric Vehicle Substation Automation Distribution Automation Solar inclusion (DG Option) Grid Sensors Auto Reclosers Smart Outage Detection (Reliability)

9 Technology Considerations 1. Will Gigabit Networks or wireless services best meet the needs of the nation s rural communities? Selection Considerations Future Proofing Security Interoperability Market Trends Technology Roadmap Open Architecture Authentication Access Control Encryption NERC/CIP Operability Layer-2 VLANs Tagging IP-Based Solutions Element Mgmt. System-Level Mgmt. OSS Integration APIs Device Mgmt. Security and Network Monitoring Subscriber & Client Access Mgmt. APIs to other Systems Device SNMP Auto-discovery Traffic Monitoring Historical Reporting Client Access & Security Rights Client Roaming Client Activity LDAP Database Intrusion Detection Systems Customer APIs for Reporting XML-like Interfaces Higher Level OSS Mgmt.

10 Technology Considerations GPON is the industry leader

Technology Considerations VOICE DATA ENTERTAINMENT 11 GPON provides the Highest Performance access solution delivering Endless Bandwidth for today s demanding Applications Premise znid ONTs Customer Premise Indoor/Outdoor CORE Converged Multi-service Access MXK Service Provider GPON can operate at distances up to 20km or 12 miles GPON uses Passive Splitters not requiring Power or Air Conditioning Fiber is Highly Secure Single Mode Fiber can support speeds > 69 Tbps Future Proof

12 Integrated Solution Project (nproject) Project Planning Network Deployment (Zhone ZMS) Budget / Time Project Vendor Zhone (ZMS) Capacity Planning Connect/ Disconnect Usage Trouble Shooting Configuration Customer Care and Billing (nbilling) Customer Order Billing Payment Processing Collection New Website Automation (nsocial) Community Enablement Advertising & social media Review online Bills, Order status, etc. Pay bill online Event

KCEC Broadband Team 13

14 Q&A Luis A. Reyes Jr. CEO Kit Carson Electric Cooperative Phone: 575.758.2258 Email: lreyes@kitcarson.com