Launching Local Fiber-to-the-Premise Networks Using JULIET*

Launching Local Fiber-to-the-Premise Networks Using JULIET* * Joint Underground Location of Infrastructure for Electric and Telecommunications www.teledimensionspublicsector.com

LEVERAGING INFRASTRUCTURE CONSTRUCTION Launch the Joint Underground Location of Infrastructure for Electric and Telecommunications (JULIET) Initiative as part of the Obama Infrastructure Stimulus Program Conduit through dam wall Conduit in Street Trench Conduits in Public Right-of-Way 2

OPPORTUNITY FOR CHANGE Launch local government owned Fiber-to-the-Premise (FTTP) Networks in conduits in public right-of-way, and reduce deployment costs by 70%. 3

WHY FIBER TO THE PREMISE NETWORKS? (FTTP) 1 G/bps High speed Internet requires (FTTP) networks Only FTTP, (not copper, coax, wireless) can be upgraded to 1 G/bps Private phone, cable and wireless need fiber back-bone can buy public FTTP to upgrade to 100 Mbps-1 G/bps Internet FTTP required to connect rural and urban areas and provide equal access to the international fiber highway Fiber represents the holy grail of communications networking: unlimited capacity, long life, and global reach. * * Fiber Optics for Government and Public Broadband: A Feasibility Study Prepared for City and County of San Francisco, January, 2007 by Columbia Telecommunications Corporation. Accessed 2/07 http://www.sfgov.org/site/uploadedfiles/dtis/tech_connect/sffiberfeasibility.pdf, Bruce Kushnick, Chairman TeleTruth, Executive Director New Networks Institute 4

BENEFITS OF JULIET FTTP networks in conduit become new local business asset Telecom companies purchase publicly owned FTTP at wholesale rates Phone, cable and wireless companies lease instead of build FTTP Publicly owned FTTP availability eliminates current Internet barriers of net neutrality, lack of competition, insufficient bandwidth, and broadband voids in rural and poor urban areas Local government uses JULIET fees to pay back deployment loans 5

UTILITY POLE BARRIERS TO DEPLOYING FTTP Pole height restrictions limit the number carriers per 35 pole Limit to number of wires attached to poles Lowest wire 25 from ground Electric wire on top 3 from telecom lines Telecom lines 1 apart, phone and cable already on poles How many new entrants can access utility poles? Utility poles vulnerable to damage from storms Electric and telecom outages negatively impact local economy especially small businesses and hourly wage workers 6

LEVERAGING CONSTRUCTION COSTS Install Joint Underground Location of Infrastructure for Electric and Telecommunications (JULIET) conduits during construction in public-right-of-way Move utilities into underground conduits during all rightof-way construction projects such as roads, bridges, water, sewer, gas, steam, railroads, and airports During construction, install local government owned FTTP networks in JULIET 7

COSTS FOR FTTP NETWORKS AND JULIET FTTP Network stand-alone project per/mile cost $30,000 rural areas / $100,000 urban areas Fiber Cost - $5,000-$15,000 per mile Conduit Cost - $5,000-$15,000 per mile Installing conduit + fiber in open trenches during construction adds $10,000 to $30,000 cost per project mile Installing FTTP in JULIET reduces deployment costs by 60-70% 8

JULIET FEE STRUCTURE JULIET Conduit Tenant Fees Calculated per linear foot occupied Fees designed to recover costs plus upgrades Repay conduit deployment loans Maintenance Operation Management Extending conduit to new build areas 9

FTTP NETWORK FEE STRUCTURE Telecommunications Business License Required for telecom carriers offering Internet services Required of phone, cable, satellite and wireless companies Business License Fees 4 % gross revenues for local government 1 % gross revenues for state government 3% for local PEG Access channels, facilities and equipment Fee Structure based on precedent paid for local cable franchises 5% of gross revenues in franchise fees for use of public right of way, acquiring a franchise and regulation, plus 3% of gross revenues for Institutional Networks, Public Education and Government (PEG) access, channels, facilities, equipment and training 10

BUSINESS LICENSE FEE USE Business license fees cover state and local programs Repay FTTP network deployment loans Fund PEG access and Institutional Networks (I-Nets) and localism media programming Fund economic development and innovation grants E-applications for government, education, libraries, hospitals Match/leverage public safety and energy management grants Entrepreneurial and innovation grants for new business development, incubators, innovation labs, job creation, work force training, telemedicine, energy, environment, telecommuting initiatives and public sector e-initiatives 11

FINANCIAL ADVANTAGE Launching JULIET Saves Billions of Dollars JULIET installed in open trenches during all right-of-way construction Electric, phone, cable and FTTP lines relocated in JULIET Eliminates utility poles and on-going maintenance costs Pulling wire and fiber through conduit reduces street maintenance costs Eliminating cuts extends street life, reduces highway maintenance costs Eliminates need for Federal Emergency Management (FEMA) funds to restore outages caused by fallen utility poles during storms 12

U.S. NEEDS FTTP TO COMPETE IN GLOBAL ECONOMY U.S. ranks 15th globally in deploying high-speed Internet FTTP next generation telecom upgradeable to 1 G/bps Internet FTTP the most secure, reliable, technology with unlimited capacity In 2008, Japan upgrading 100 Mbps bidirectional FTTP Networks to 1 G/bps Internet U.S. has FTTN, must upgrade to FTTP 100 Mbps-1 G/bps Internet 13

HIGH SPEED INTERNET COST COMPARISON U.S. high-speed Internet Home service: 1.5-5 Mbps/750 kbps on copper phone or coax cable $40 per month U.S. Business dedicated phone T1 line: bidirectional 1.5 Mbps Internet $550+ per month Overseas high-speed FTTP bidirectional Internet @ 100 Mbps for home, business $40 per month Japan Upgrading FTTP to bidirectional Internet @1 G/bps for home, business $51.40 per month 14

U.S. SUBSIDY OF PRIVATE TELECOM INDUSTRY From Harvard s Nieman Watchdog Project: By 2006, according to telecommunication companies own documents, 86 million [U.S.] customers should have received 45 Mbps [bidirectional] Internet fiber optic service, replacing the [phone company s] copper wiring... [From 1996-2006,] America paid over $200 billion in... fees as well as tax and other financial incentives to improve subscriber lines, and there is nothing to show for it. * "Where's that broadband fiber-optic access?" Bruce Kushnick, Harvard's Nieman Watchdog Project, 3-14-06. http://www.niemanwatchdog.org/index.cfm?fuseaction=ask_this.view&askthisid=186 15

MAKING THE CASE FOR LOCAL OWNERSHIP BACKGROUND FIBER AND I-NETS FTTP network is a natural monopoly FTTP trumps phone and cable infrastructure enhancements FTTP upgrades local Institutional Networks (I-Nets), which are in-kind infrastructure payments required in local cable franchises I-Nets interconnect government, education and public sector agencies Local governments manage I-Nets and now require FTTP to upgrade public safety, emergency management services and E-Applications 16

LOCAL OWNERSHIP (cont) ESCALATING COMMUNCATIONS NETWORK COSTS Public sector agencies largest broadband users Cities of 40,000 pay $1.1 million annually for telecom Public sector needs FTTP to implement e-applications Private sector cannot profitably deploy universal FTTP 17

LOCAL OWNERSHIP (cont) Under Local Government Ownership Local governments repay FTTP and deployment loans FTTP available to all telecom incumbents and new entrants FTTP sold to competing businesses at wholesale rates Local private businesses bid, build, operate, maintain FTTP FTTP upgrades I-Nets developed under cable franchising model FTTP affordably connects public sector with 100 Mbps Internet Public sector affordably implements E-applications 18

FAIR REGULATIONS Local governments Provide first line services public safety, emergency response, health, water, sewer, waste collection, etc. Regulate cable franchises for 30 years Manage cable I-Nets interconnecting public sector agencies Assess fees to operate FTTP in public-right-of-way conduit Create public private partnerships Create local boards GAIN to identify emerging telecom requirements 19

GOVERNMENT ACCESS INFORMATION NETWORK (GAIN) ADVISORY COMMITTEES AND BOARD

VALUING FTTP AS PUBLIC ASSET FTTP Network Valuable public asset Needed to carry 100 Mbps 1 G/bps Internet Uses public right-of-way, Requires local ownership... business case for FTTP... not limited to such easily-quantified matters as cash flow and capital investment rather,,,, it includes the less quantifiable financial factors,... economic development, small business empowerment, job creation, livability, environment protection, education, increased sales and real estate tax revenues, increased property values and other factors that measure the overall benefit of a next generation communications infrastructure such as FTTP. * * Fiber Optics for Government and Public Broadband: A Feasibility Study, prepared for City & and County of San Francisco, January 2007, Columbia Telecommunications Corporation, http://www.internetctc.com 21

OBAMA STIMULUS PROGJECTS REQUIRE FTTP Telemedicine Modern Electric Grid Initiative Energy and the Environment Tele-presence HD video, interactive teleconferencing Tele-government Energy Management Job Creation Public/Private Business Incubators Skilled Clean Technology Workforce Build Livable Sustainable Communities Education Work Force Training Health Care Rural Services Urban Policy Technology Stimulate economy Regional Innovation Clusters Access to Underserved Businesses Strengthen Core Transportation Infrastructure Improve Building Efficiency 22

TECHNOLOGY ENHANCED PUBLIC ASSETS NEED FTTP Emergency Management & Notification Public Information Programs Local News, Culture, Building Community Free Speech Program Creation & Generation Media Literacy & Competency Training Programs Stay-at-Home Business Development / Employment Opportunities Teleconferencing / Telecommuting Tele-Medicine Tele-Courses New Applications Development from your garage or home office Global Business Operation from Home 23

TELEMEDICINE REQUIRES FTTP EXAMPLES OF TELEMEDICINE SERVICES OVER FTTP INTERNET Consulting Diagnostics & Monitoring Home Monitoring & Home Care Services Video Conferencing Vital Signs Monitoring Distance Education Routine Medical Practice Enhancement Chronic Disease Management Telemedicine for Diabetic Care Tele-cardiology Tele-pediatrics & Child Health Tele-nursing Tele-psychiatry / Mental Health Maximizing health service delivery in rural areas Early Warning for Infectious Diseases E-Learning 24

PACS NEED FTTP TO SUPPORT TELEMEDICINE PACS for Picture Archiving and Communication Systems PACS Electronic network Connects imaging modalities such as MRI, CT, Ultrasound etc. to physicians computers Connects image storage, archiving components, Radiology Information Systems (RIS) that contain medical record information. PACS require FTTP Networks 25

TELEMEDICINE NEEDS INTERNET ON FTTP Telesurgery Emergency Transport 26

SMART ELECTRIC GRIDS NEED FTTP FOR ENERGY AND ENVIRONMENT INITIATIVES On-line Energy Management Upgrades Aging Electric Grid 27

EMERGENCY MANAGEMENT SERVICES REQUIRE FTTP 28

TELE-EDUCATION / DISTANCE LEARNING NEEDS FTTP Tele-course Images Reach the World Kinds of Distance Learning Learn from Home Global Learning 29

E-SCIENCE & UNIVERSITIES 30

TELEPRESENCE / TELECONFERENCES REQUIRE FTTP 31

ROAD / INTERNET COMPARISON Road systems upgraded from 2 lanes to expressways to handle increased volume and speed U.S. phone and cable Internet at 1.5-5 Mbps must be upgraded to FTTP Internet at 100 Mbps-G/bps Good News: unlike interstates, FTTP has unlimited Internet capacity, no traffic jams, no limits to future growth. 32

SUMMARY The Interstate highway system transformed the 20th Century economy Eisenhower built the interstate system with a capacity 10 times greater than was needed in the fifties. The Internet highway, transformed the 21st Century economy, and requires FTTP networks upgradeable to 1 G/bps capacity, the new global standard The good news is that FTTP networks can be deployed in JULIET conduits for one third the construction cost if government-owned and implemented in concert with the Obama Infrastructure Stimulus Program. 33

MOVING TO FTTP INTERNET In thirty years, the nation transitioned from the Industrial to the Information Age. Now Daniel Pink describes a seismic... shift... moving from an economy and a society built on the logical, linear, computer-like capabilities of the Information Age to [one] built on the inventive, empathetic, big-picture capabilities of what s rising in its place, the Conceptual Age. * A graphics and innovation-based Conceptual Age requires transporting more video intensive digital information than the U.S. Internet can handle. Don t we need local fiber-to-the-premise networks carrying G/bps Internet in the 21st Century? * A Whole New Mind, by Daniel Pink, Penquin Group, New York, March 2005. Mr. Pink is contributing editor to Wired. 34

ABOUT US A specialist in designing telecom plans for local governments and public sector agencies, Ms. Stull s twenty-seven years of public sector experience includes enforcing cable franchises, conducting needs assessments, implementing public, educational and government access systems and institutional networks, integrating telecom within municipal operating and economic development departments, training staff and restructuring delivery of public service. In the eighties, Ms. Stull acquired a telecom planning grant from the John and Mary Markle Foundation to develop the first Local Area Network Plan for a major city. As a result of her work in the regulatory arena, Ms. Stull testified on behalf of National Association of Telecommunications Officers and Advisors (NATOA) at the U.S. Senate Public Hearings opposing legislation leading up to passage of the 1984 Cable Act. Ms. Stull presents seminars and helps communities identify initiatives designed to compete in a 21st Century, Internet dependent, global economy. Rita R. Stull, President TeleDimensions, Inc. ritastull@fuse.net www.teledimensionspublicsector.com 35