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14 Attachment 1 - Uptown TDPUD Report Final
Attachment 1 1�� UPTOWN SERVICES, LLC Community -Wide Broadband Initial Scoping Study for Truckee Donner PU D January 2023 Uptown Services, LLC Dave Stockton & Neil Shaw, Principals UPTOWN SERVICES,LLC STUDY OBJECTIVE & SCOPE OBJECTIVE: Identify and evaluate options for the District to enhance the availability, affordability, reliability, and capacity of broadband infrastructure for residents and businesses... STUDY SCOPE: 1. TASK 1: Market and Customer Demand Analysis 2. TASK 2: Potential Utilization of Current TDPUD Assets 3. TASK 3: Middle & Last Mile Routes/Service Areas and Capex Budget 4. TASK 4: Potential Funding Sources 5. TASK 5: Analysis of Business Model Options 6. TASK 6: Service Provider Partnership RFI 1/10/2023 Study conducted by Uptown Services, LLC 2 TASK 1: Market & Customer Demand Analysis Incumbent Broadband Offerings UPTOWN SERVICEs,LLC INCUMBENT RESIDENTIAL INTERNFT • Optimum (formerly Suddenlink) appears to have fully upgraded its HFC plant to DOCSIS3.1 and can offer gig service. • AT&T offers DSL plans depending upon the proximity of the service address to their Central Office. In conducting availability searches on their website, only a 1.51VI tier was returned. • Plumas Sierra has deployed some fiber within the TDPUD service area but plans are expensive Download Upload Price Data Cap? ACP? Technology Months 1-24/ Month 25+ 300M 10M Cable $40.00 / $50.00* Optimum (Altice) 500M 20M $60.00 / $70.00* No Yes Modem 940M 35M $80.00 / $90.00* (DOCSIS 3.1) AT&T 1.5M ? $55 ? Yes DSL 50M 50M $79 100M 100M $99 Modified Plumas Sierra 250M 250M $149 No discount Fiber 500M 500M $199 program 1G 1G $299 Optimum pricing per optimum.net, AT&T pricing per att.com, PST pricing per plumassierratelecommunications.com all as of Oct. 2022. *Optimum prices reflect AutoPay & Paperless Billing discount of $5/month. **Working with ISPs and reselling local loop access. 1/10/2023 Study conducted by Uptown Services, LLC 4 UPTOWN ALTERNATIVE RESIDENTIAL INTERNET SERVICEs,LLC • Oasis has deployed fiber to some locations, but primarily serves the TDPUD service area with fixed wireless. SkyFiber is another locally available fixed wireless option. Both services are expensive and offer limited capacity. • Starlink is available as a Low Earth Orbit satellite service but is expensive. Download Upload Price Data Cap? Contract? Technology 10M 1M $65 40OGB 20M 2M $75 80OGB 40M 10M $85 1.2TB Yes, from 1-3 40M 10M $95 2TB years with early Fixed 70M 25M $105 2T6 termination fees Wireless Oasis 150M 35M $130 1.5T6 of up to $350 150M 35M $155 Unlimited Oasis will construct fiber to neighborhood clusters with sufficient interest. Currently there is one active "Fiber Class Internet Hub at a residence on Alder Road available to serve neighbors within 2 miles with up to 1G. Pricing Fiber is custom quoted. 25M 15M $149 50M 25M $169 Fixed SkyFiber 100M 50M $179 7 7 Wireless 200M 50M $199 $110.00 LEO Starlink 250M — 350M ? (plus $649 for hardware + shipping) No Satellite Oasis pricing per oasisbroadband.net, SkyFiber pricing per skyfiberinternet.com, and Starlink pricing per starlink.com all as of Oct. 2022. Very limited availability and requires the host end use to bear all initial construction costs. 1/10/2023 Study conducted by Uptown Services, LLC UPTOWN INCUMBENT COMMERCIAL INTERNET SERVICES,LLC • Optimum has standard business Internet plans up to 940Mbps, but plans require term contracts. • AT&T has DSL plans available with speeds up to 1G but with minimal pricing information without a custom quote. • PST has some fiber availability but only advertises a single 75M tier. Download Upload Price Contract Data Cap? Technology 200M $69 (1 Year) Optimum 300M $69 (1 Year) Cable Modem (Altice) 500M 7 $89 (2 Years) 7 No (DOCSIS 3.1) 940M $149 (2 Years) 10M 20M DSL or Fiber AT&T 50M ? All custom quote ? ? (Dedicated 100M Internet) 1G Plumas 75M 15M $109 ? ? Fiber Sierra (Minimum install fee is $500) Optimum pricing per optimum.net, AT&T pricing per att.com, PST pricing per plumassierratelecommunications.com all as of Oct. 2022. Not available in all areas. 1/10/2023 Study conducted by Uptown Services, LLC TASK 1: Broadband Quantitative Survey Survey Design UPTOWN SERVICEs,LLC RESEARCH TEAM o The quantitative research process utilized both subject matter and functional expertise across multiple contractors by specialty: O Uptown Services: Subject expertise and study data needs O SDR Consulting (Rick Hunter): Research expert overseeing design and execution (23 years experience with 200k completed research projects) O American Directions Research Group: Survey fielding and data collection (7 US -based call centers with capacity to complete 85k person -hours of call interviews per month) O Prairie Research Group (James Wolken): Online survey programming, crosstab analysis and production of output banners (25 years experience) Survey Instrument Design Uptown, SDR & City Staff Sample File City Staff M Sure .0 Online Survey Client Report Programming, Data File Processing & 061 Crosstabs PRG Uptown 1/10/2023 Study conducted by Uptown Services, LLC UPTOWN SERVICEs,LLC 0 0 0 Phone and online surveys DESIGN FRAMEWORK ❖ Total sample (n) of 2,601 respondents of universe (N) of z15,000 households ❖ 400 via phone survey (list included wireline and wireless numbers) ❖ 2,201 via online email invitation ❖ 920 completed speed tests ❖ ± 1.7% sample error at 95% confidence interval ❖ Survey offered in English and Spanish, with 7 completes in Spanish Age quotas used to ensure robust sample across all age groups. Results weighted to reflect actual age distribution from 2020 American Community Survey (US Census Bureau) data Respondents screened to ensure Decision -maker for telecommunications and entertainment services in the home Reside within TDPUD service area Respondents with immediate family members employed by any company providing Internet service were excluded 1/10/2023 Study conducted by Uptown Services, LLC UPTOWN SERVICES,LLC o Survey results are weighted to reflect the actual age distribution (by age decile) per the 2020 census. o The income profile of the sample is not dissimilar to the universe of residents, but skews to higher income because older (and lower income) households are more likely to refuse to state income. 11%011% 8% 2°% Household Income Census Sample Up to $25k $25k - $50k - $50k $100k 1/10/2023 29% 16% 12 % 0% $100k - $150k - > $200k Refused $150k $200k SAMPLE DEMOGRAPHICS Percent of Sample Not Stating Income (By Age) 75+ 31% 65-74 55-64 45-54 35-44 � 11% 25-34 7% 20-24 8°% 18% 24% 22% Head of Household Age (Unweighted Sample) Census Raw Sample Weighted < 25 25 - 34 35 - 44 45 - 54 55 - 64 65 - 74 75+ Study conducted by Uptown Services, LLC 10 TASK 1: Broadband Quantitative Survey Current Broadband Services Usage UPTOWN SERVICES,LLC INTERNET SERVICE PURCHASING BEHAVIOR 0 98% of TDPUD households subscribe to Internet service at home, with 87% via a wired connection o Suddenlink (now Optimum) has 76% market share of the residential broadband market o Affordability is the primary reason for lack of an Internet subscription Verizon Internet Market Share Other 1%Starlink (Households �iasat Pr vi er PST 2�% HughesNet T- b o% 3�% Oasis 1% 1/0 5°% 1 AT&T 9% 1/10/2023 Incidence of Internet Households 6%_ ■ Wired Connection Fixed Wireless ■ Home Internet Satellite ■ No Subscription Reason for No Internet at Home o Suddenlink 76% 3% 0% ■ Too Expensive ■ No Computer Study conducted by Uptown Services, LLC 59% Don't Need Internet Other Reason UPTOWN SERVICES, LLC INTERNET ACCESS METHOD DEMOGRAPHICS o Lower income households are less likely to have a wired Internet connection o Internet access method is not significantly influenced by age Internet Access Method by Income 100 90% 80% 70% 60% 50% 40 30% 20% 10% Internet Access Method by Age —1 1 1 F 0% 9 Up to $25k $25k - $50k $50k - $100k - > $150k 20 - 24 25 - 34 35 - 44 45 - 54 55 - 64 65 - 74 75+ $100k $150k Do Not Use Cell Plan /Free WiFi Do Not Use Cell Plan / Free WiFi Home Internet Satellite i Home Internet Satellite Fixed Wireless Wired Connection ■ Fixed Wireless Wired Connection 1/10/2023 Study conducted by Uptown Services, LLC 30% 20% 10% 0% UPTOWN SERVICES, LLC STATED INTERNET SPENDING o Monthly spending averages $78 across all households o In general, average spending increases with greater household income Monthly Internet Spending 21% 1% 100% 90% 80% 70% 60% 50% 40 % 30% 20% 10% 0% Internet Spending by Income <$25k $25k - $50k $50k - ,Lc��z �p �ti oti -7� ��a\ ���` $100 k <$25 $25-50 $75-100 $100-150 Bundled Don't Know 1/10/2023 Study conducted by Uptown Services, LLC $100k- >$150k $150k $50-75 > $150 UPTOWN SERVICES,LLC STATED DOWNLOAD SPEED 0 24% of households do not know what speed they subscribe to 0 38% of households state they subscribe to > 100M o Lower income households are more likely to subscribe to lower capacity Internet tiers Stated Download Speed Internet Access Speed by Income 30% 25% 25% 20% 15% 10% 7% 5% 5% 0% 100 % 90% �� 17 26% 24% 30% 80% — o 4/° 46% 17% 70% 9% 3% 11% — 3% 60% 7 0 — g% 16% 50% — 26% 7% 40% 3% 13% 54% ° 30% 43% 13% 28% o 18 /o 20% — 14% 8% 1% 10% 13% — 7% 3% 0 % 9 8% � 0% —L4% 4% 5% Up to Up to Up to Up to Up to Up to > 1G Don't Up to $25k $25k - $50k $50k - $100k $100k - > $150k 25M 50M 100M 250M 400M 1G Know $150k ■ 25M 50M 100M 250M 400M 1G+ DK 1/10/2023 Study conducted by Uptown Services, LLC L�� UPTOWN PERCEPTION OF RECEIVED VS. SUBSCRIBED SPEED SERVICES,LLC o Only 1 in 2 households strongly agree or somewhat agree that they are receiving the advertised download speed they are subscribing to... Q6: "To what extent do you agree or disagree with the following statement: I am receiving the advertised download speed I am paying for on my home internet connection?" 14% 12% 21% 24% 30% 1/10/2023 Study conducted by Uptown Services, LLC 16 UPTOWN SERVICES,LLC OBSERVED INTERNET SPEED o Speed test results identify the median download speed as 108Mbps and the median upload speed as 18Mbps. 1000 700 600 500 400 300 200 100 0 Speed Test Results — Observed Median Download & Upload Speeds (n = 920) 870 <49 Down 50-99 100-199 200-399 400-599 ■ Down Up 9 0 13 1 600-799 >800 1/10/2023 Study conducted by Uptown Services, LLC UPTOWN STATED VERSUS OBSERVED DOWNLOAD SPEED SERVICEs,LLC o Among those households who were able to state their subscribed Internet speed, 80% of households subscribing to a download tier greater than 50M are not receiving their perceived download speed O Stated Above 50M: 85% of households O Observed Above 50M: 5% of households Stated versus Observed Download Speed Stated: n = 2,527 Observed: n = 920 80% 70% 60% 50% 40% 30% 20% 10% — 7% 0% 69% Up to 25M 1/10/2023 r"to 3/ 2% 0% Up to 50M Up to 100M Up to 250M Up to 400M Study conducted by Uptown Services, LLC Stated Observed � 0% Up to 1G 2% 0% >1G UPTOWN POST SPEED TEST OBSERVATIONS SERVICEs,LLC 0 46% of households that completed the speed test observed that the speed test outcome was lower than their subscribed speed... Q36: "How does the download speed test result compare with the download speed you are subscribing to from your Internet provider?" 30% Test Result is Higher Test Result is Lower Result Matches Subscription Don't Know 1/10/2023 Study conducted by Uptown Services, LLC 19 TASK 1: Broadband Quantitative Survey Satisfaction & Attribute Importance UPTOWN SATISFACTION WITH SPECIFIC INTERNET ATTRIBUTES SERVICEs,LLC o Internet satisfaction levels are low compared to other markets, with customer service and price being the service attributes with lowest satisfaction levels. o Across all service attributes, the percentage of households that are `very satisfied' and rating the service a 9 or 10 is very low. 4.0 Percent Rating 2.0 '9' or '10' _ 10% 0.0 Service 1/10/2023 4.4 0 Percent Rating '9' or '10' _ 8% Satisfaction Rating by Internet Attribute (Mean Rating on a 1-10 Scale) .; Percent Rating '9' or '10' _ 11% 5.0 Percent Rating '9' or '10' _ 11% 5.7 Price Reliability Speed Consistency Available Speed Study conducted by Uptown Services, LLC 4.7 Overall 21 UPTOWN ACCESS TO SUFFICIENT BROADBAND CAPACITY SERVICES,LLC 0 42% of TDPUD households feel that at the present time they do not have the ability to get the Internet speed that they want... Q12: 'To what extent do you agree or disagree with the following statement: I am currently able to get the Internet speed I want for my home?" 19% 16% 26% 36% 1/10/2023 Study conducted by Uptown Services, LLC 22 5 0 K 2 1 N UPTOWN SERVICEs,LLC ATTRIBUTE IMPORTANCE o Reliability and speed are the most important attributes o Not having a data cap scored as more important than price Importance Rating of Select Broadband Service Attributes (Mean Rating on a 1-5 Scale) Brand No Contract Customer Price Not Having a Termination Service Data Cap Fee 4.7 4.8 Internet Reliability Speed 1/10/2023 Study conducted by Uptown Services, LLC UPTOWN BROADBAND AREAS FOR IMPROVEMENT SERVICES,LLC TDPUD residents see increased Internet speed and lower prices as the most important dimension for improving their broadband. Among likely subscribers, increased speed and improved reliability are seen as the most desired area for improvement... Q32: "What would you like to see most improved with your current broadband service ?" Lower Prices Increased Internet Speed Improved Reliability Getting Speed Paid For Customer Service More Provider Options Nothing 1% 21% 21% 21% 24% 20% 25% 12% 17% 7% 8% Total Sample 4% Definitely Subscribe @ $70 4% 11% 1/10/2023 Study conducted by Uptown Services, LLC UPTOWN SERVICES,LLC MOST DESIRED IMPROVEMENT BY AGE o Younger households place more value on Internet speed improvements o Older households (55+) place more value on lower pricing 50% 45% 40 % 35% 30% 25% 20% Q32: "What would you like to see most improved with your current broadband service?" 20-24 25-34 35-44 45-54 55-64 Internet Speed Lower Prices 65-74 75+ 1/10/2023 Study conducted by Uptown Services, LLC TASK 1: Broadband Quantitative Survey Digital Aptitude & Remote Working and Learning UPTOWN SERVICES,LLC 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% PERCEPTIONS OF INTERNET SPEED 0 38% of households state their ideal Internet speed would be 1G or higher. This increases to 56%/51% among those who would definitely subscribe at $70/$90 per month for 1G o One in two households perceive the upload speed as very important Q13: Ideal Download Speed 50M 100M 250M 400M 1G >1G ■ Total Sample Definitely Subscribe @ $70 Definitely Subscribe @ $90 Q14: "How important is the upload speed on your home Internet connection?" 9 4% 0 4% 51% 41% 1/10/2023 Study conducted by Uptown Services, LLC 27 UPTOWN SERVICEs,LLC IMPORTANCE OF DIGITAL APPLICATIONS Social connection and entertainment rate higher in importance than work -at-home and online learning applications despite the impacts of COVID-19... 5.0 4.0 3.0 2.0 1.0 0.0 Importance Rating of Select Broadband Applications/Uses in the Home (Mean Rating on a 1-5 Scale) \��� e el �a a �a� Pa J� 1/10/2023 Study conducted by Uptown Services, LLC TASK 1: Broadband Quantitative Survey Affordable Connectivity UPTOWN AFFORDABILITY & SUBSIDY AWARENESS SERVICEs,LLC 0 48% of households strongly agree or somewhat agree that they are subscribing to a lower Internet tier in order to save money. o Only 7% of households state that their Internet provider offers an income -based subsidy, although both Suddenlink and AT&T do so. Q8: "I subscribe to a lower speed Internet service than I would like to in order to save money?" 32% 6- 53% 21% �aO 42% *Mbw 19% 27% �r O� O� -A o� O 1/10/2023 5% Income $25-50k 15% Income < $25k Total Sample t 14% 7% b- 20% 5% 33% Q10: "Does your Internet provider offer a discounted Internet service for households who qualify due to lower income?" ■ Yes Study conducted by Uptown Services, LLC No 15% Don't Know 30 UPTOWN SERVICES,LLC SUBSIDIZED INTERNET PARTICIPATION o Only 1% of TDPUD households state that they are receiving a subsidized internet service based on their level of household income o Among households receiving a discount, the stated level of discount varies. Both Suddenlink and AT&T participate in the ACP program that reflects a $30/month discount Q9: "Is your household receiving an Internet discount based on your income?" Don't Know ..(11. VV IIQL IJ LIM QIIIVUnt of the discount?" 20% 22% 2% 32% 24% < $10 $11 - $20 ■ $21 - $30 > $30 Don't Know 1/10/2023 Study conducted by Uptown Services, LLC UPTOWN SERVICEs,LLC AFFORDABLE CONNECTIVITY PROGRAM The Affordable Connectivity Program (ACP) is a newly funded federal program to subsidize Internet service among low-income households to narrow the digital divide... • $14.213 in total funding • Qualifying households receive a $30 monthly benefit towards Internet service Program Overview • Connected device reimbursement of $100 if provider charges between $10-$50 for the device • No set end date • Participation qualifies the service provider to receive BEAD grant funding • Household income at or below 200% of federal poverty limit (e.g. Household Participation household size of 3 earning $44k or less) Requirements • Participation in national school lunch program • Participate in the FCC Lifeline program • Eligible Telecommunications Carriers (ETCs) offering residential Internet service Service Provider Participation • Requires FCC approval and USAC election notification Requirements • The $30 discount must be available on all Internet tiers offered by the provider • No credit check and no disconnects for non -pay until 90 days past due 1/10/2023 Study conducted by Uptown Services, LLC UPTOWN TESTED RESIDENTIAL INTERNET PRICE POINTS SERVICES,LLC Speed tier designs and pricing will depend upon the deployed technology(ies). The quantitative survey evaluated household purchase intent taking into consideration a range of strategy options: o Price elasticity of demand for 1G Internet tested at $70 and $90/month using a cell design so each participant was presented with one price point o ACP-eligible households were presented with 1G Internet including the $30 ACP discount (still using the Cell A and B design) o Multi -Gig tier options were presented to participants that stated they would 'definitely' or 'probably' subscribe to the 1G tier Monthly Monthly Internet Tier Download / Price: Price: ACP Upload Standard Eligible 1G / 1G Cell A: $70 Cell A: $40 Cell B: $90 Cell B: $60 2G / 2G Cell A: $110 NA Cell B: $120 4G / 4G $150 NA 1/10/2023 Study conducted by Uptown Services, LLC UPTOWN SERVICES,LLC ACP ELIGIBILITY o Based on federal income eligibility limits combined with survey responses regarding household size and income, we estimate that approximately 6-10% of TDPUD households qualify for ACP. The survey measurement of 6% eligibility is understated due to lower sample representation of low income households o Eligibility set at 200% of Federal Poverty Level: O HH of 1: Income up to $27,180 O HH of 2: Income up to $36,620 O HH of 3: Income up to $46,060 O HH of 4: Income up to $55,500 O HH of >4: Add $9,440 per person Household Size (Survey Data) 42% 1 2 3 4 5-6 7-8 9+ ACP Eligibility (Survey Data) 94% ■ Eligible 6% Not Eligible 1/10/2023 Study conducted by Uptown Services, LLC TASK 1: Broadband Quantitative Survey Broadband Market Share Potential UPTOWN PROVIDER PREFERENCE SERVICEs,LLC 0 25% of all respondents, when given the choice, would prefer to receive high speed Internet from 'a community -owned local agency.' o Among those who would definitely subscribe, the preference increases to 41%. Q33: 'Among the following list of potential providers, who would you prefer to receive broadband service from?"., Total Sample Definitely Subscribe @ $70 41% 37% 14 32 1 25% 7%4% 6%5% 5%3% 2%1% 3%1% %1% 3%1% 10%7 2a/4% -10e \A God 1/10/2023 Study conducted by Uptown Services, LLC UPTOWN PURCHASE INTENT: ENTIRE SAMPLE SERVICES,LLC At a $70 price for 1G, 68% of respondents indicated they would definitely or probably switch their Internet service to a fiber system installed by the City. This metric drops to 58% at the $90 price point... 100% 75% 50% 25% L 0% 1/10/2023 Q23/Q24: Stated purchase intent for: Internet at $70/mo. for 1Gbps - Internet at $90/mo. for 1Gbps 22% 15% 5% 9% 3% 1G @ $70 ■ 'Definitely Would' 'Probably Would' 'Might/Might Not' ■'Probably Would Not' 'Definitely Would Not' 11% Don't Know 3% 1G @ $90 Study conducted by Uptown Services, LLC 21% 8% Primary Reason to Switch (Definitely or Probably Response) Other, 3% Prefer Local Agency, 13% New Provider, 22% Lower Price, 23% More Capacity, 39% 37 UPTOWN PURCHASE INTENT: ACP ELIGIBLE SERVICES,LLC 0 63-68% of respondents likely eligible to participate in the Affordable Connectivity Program indicated they would definitely or probably subscribe at reduced pricing of $40 and $60 respectively. o With so few households ACP eligible, the small sample sizes (Cell A: n=72 and Cell B: n= 34) can impact results 100% 75% 50% 25% Q30/Q31: Stated purchase intent for: - ACP Eligible Internet at $40/mo. for 1Gbps - ACP Eligible Internet at $60/mo. for 1Gbps 33% 28% 'Definitely Would' 'Probably Would' 'Might/Might Not' 'Probably Would Not' 'Definitely Would Not' Don't Know 0% % — 1G @ $40 1G @ $60 1/10/2023 Study conducted by Uptown Services, LLC 38 UPTOWN SERVICES,LLC PENETRATION & ELASTICITY CALCULATIONS o Uptown uses a Tikert Scale' with Overstatement Adjustment ❖ Conservative research techniques from the Packaged Goods sector ❖ Clearly specify purchase intent vs. "interest" and removes overstatement bias o Example: "How likely would you be to subscribe?" ❖ Definitely Would 21.5% x 70% = 15.0% ❖ Probably Would 35.6% x 30% = 10.7% ❖ Might/Might Not 20.0% x 10% = 2.0% 27.7% = Penetration Estimate o The price elasticity of demand is elastic at the tested price range as the change in demand exceeds the change in price, resulting in greater forecasted annual revenue at the lower price point: ❖ ed = A in demand / A in price = 28.8%/22.2% = 1.3 Residential Subscribers Monthly ARPU Survey Forecasted Take (15,000 serviceable (average revenue Annual Cell Broadband Service Rate premises) per user) Revenue A 1G Internet @ $70 40.5% 6,075 $82/month $5.978M B 1G Internet @ $90 31.4% 4,710 $99/month $5.595M 1/10/2023 Study conducted by Uptown Services, LLC UPTOWN SERVICES,LLC INTERNET DISPERSION & ARPU Depending on the price of the 1Gbps tier, about 1 in 5 households that would definitely or probably subscribe would opt for a multi -gig tier at the tested price points. The resulting Average Revenue Per User (ARPU) is $82-$99 per month depending upon the pricing strategy deployed... Most likely Subscribed Tier at Stated Price Points (If 1G Tier Priced at $70/mo.) 1G @ $70 ARPU: $82/mo. 7% 16% 77% 2G @ $110 4G @ $150 Most likely Subscribed Tier at Stated Price Points (If 1G Tier Priced at $90/mo.) 16% ARPU: $99/mo. 9% 75% 1G @ $90 2G @ $120 4G @ $150 1/10/2023 Study conducted by Uptown Services, LLC 40 UPTOWN SERVICES, LLC PURCHASE INTENT BENCHMARKING Terminal Penetration by Service (quantitative survey outcomes) 60% 50% 40% 2005 ' 2010 2015 2020 Tested @ '$70 — - ♦ ! * ' • ♦ ♦ • ♦ • 30% ■ ♦ • ♦ • 20% ♦ ♦ ♦ , 10% Video Internet ♦ Phone 0% ' Q M U 0 w �� LL O a ��,��,� C W v► �� X>- N Q M +14-<<<<<<¢Q U 0 w LL C7 2 Q Q Y J as 0 Y Y L Y 4,4- Y 4J N �, �G �,�� Y Y Y L v �,� CDY N Y N Y Y Y W N Y Y V +J N Q: a-+ a.., N +J Q: a' N 4, 4 -� Qi v � a- 4_ Q � L CO L lccC L (CC6 CCO c L cc� G L L cc� iC0 fCB G C C iO CC G f6 L CC CCr CC� G G Y L � L L L CCO ICC CCM (CO L L CCC6 ICcO L CCCO � L L L (p ICC9 L CCCO I``6 `ra L �C �G �C ,G `e Y L L L N Y G G G G 2 2 1/10/2023 Study conducted by Uptown Services, LLC 41 1�� UPTOWN SERVICES,LLC SUMMARY OF RESIDENTIAL RESEARCH FINDINGS Current . 98% of households use Internet at home with 87% using a wired connection. Optimum (Suddenlink) is Demand & the dominant provider. Use Demographic • Lower income households are less likely to have a wired Internet connection . Internet access method is not significantly influenced by age Factors . Lower income households are more likely to subscribe to lower capacity Internet tiers Satisfaction • Overall Internet satisfaction score is 4.7 on a 1-10 scale. The percentage of very satisfied households (rating 9 or 10) is just 8% overall due to dissatisfaction with price and customer service. • 42% of TDPUD households feel that at the present time they do not have the ability to get the Internet speed that they want Market Gaps • 80% of households subscribing to a download tier greater than 50M are not receiving their perceived download speed • Immediately after completing a speed test, 46% of households observed that the speed test outcome was lower than their subscribed speed • 48% of households strongly agree or somewhat agree that they are subscribing to a lower Internet tier Affordability in order to save money • We estimate that approximately 6-10% of TDPUD households qualify for ACP • With price elasticity at 1.3, the $70 price point is expected to maximize revenue and contribution and Potential deliver a 40% take rate. This take rate benchmarks high compared to other studies. • 38% of households state their ideal Internet speed would be 1G or higher. This increases to 56%/51% Demand & among those who would definitely subscribe at $70/$90 per month for 1G Use . 25% of all respondents would prefer to receive high speed Internet from 'a community -owned local agency' January 23 Task 2 - Assessment of TDPUD Utility Assets UPTOWN TASK 2 - EVALUATION OF EXISTING UTILITY ASSETS SERVICES,LLC o Assessment of District fiber, communications and utility assets O Electric poles O Spare conduits O Tower sites O Existing fiber system O Planned fiber deployment o Assessment of last mile technologies O Broadband capacity requirements forecast O Broadband technology overview O Electric utility application analysis 1/10/2023 Study conducted by Uptown Services, LLC 44 UPTOWN SERVICES,LLC INVENTORY OF DISTRICT INFRASTRUCTURE o Electric poles O Primary Distribution — 4,647 O Secondary Distribution — 1,298 O Trees — 1,369 o Spare conduits O Broadband Pathways — 500,000 feet O Primary Electric Pathway— 100,000 feet O Secondary Electric Pathways — 20,000 feet O Abandoned Pipelines — 1,000s of feet in need of pros o Radio transmitters / sites O Water SCADA Comms - 54 O Water AMI - 27 O Point to Point Network Link - 8 O DMR Two -Way Radio - 2 O Analog Two -Way Radio - 1 o Fiber system O Existing network — 291,000 feet O Backbone — 250,000 feet O Lateral — 41,000 feet O Planned expansion — 151,000 feet O Backbone — 120,000 feet O Lateral — 31,000 feet 1/10/2023 Study conducted by Uptown Services, LLC 45 UPTOWN DISTRICT INFRASTRUCTURE ASSESSMENT SERVICES,LLC o Electric poles O 80% of all poles expected to require replacement to support a new FTTP attachment O Average cost of $20,000 per primary distribution pole O Average cost of $10,000 per secondary distribution pole O Pole replacements expected to exceed $84M O Pole replacement cost z $125 per foot o Spare conduits O 1,410 services fed from underground primary electric network O 1,092 services fed from primary lines with spare conduit O 318 services fed from primary lines with no spare conduit O Underground structures need to be installed throughout areas with spare conduits O Cost implications discussed in Task 3 o Radio transmitters / sites O Significant wireless site infrastructure in place throughout service area O Combination of water tanks, free standing towers and poles in use for utility applications O Sites should be able to accommodate a minimal antenna array and radio/fiber equipment O Most primary sites connected to TDPUD fiber system o Fiber system O Fiber network is comprised of high -count cables (96, 144 and 216) on main runs O System should have enough capacity to connect multiple FTTH and/or fixed wireless sites O Connecting FTTH neighborhoods may require additional feeder fiber capacity O Future backbone fiber deployment should be augmented if FTTH is pursued 1/10/2023 Study conducted by Uptown Services, LLC Task 2 - Last Mile Technologies and Utility Applications UPTOWN ASSESSMENT OF LAST MILE TECHNOLOGIES SERVICES,LLC o Broadband capacity requirements O Gigabit capability is the benchmark for any new wireline broadband system O Multi -Gig is also in demand from a growing segment of the market (residential and commercial) O 10Gig and multi-10Gig capability will be required within 10 years 0 100% fiber network offers only pathway to multi-10Gig capability O Passive Optical Network (PON) standards continue to evolve O GPON — 2.4Gig downstream / 1.2Gig upstream has been the primary option for FTTP until 2019 O XGS-PON — 10Gig symmetrical platform now being deployed by FTTP operators O NG-PON2 — multi-10Gig symmetrical capability compatible with GPON and XGS-PON o Macro -cell fixed wireless O Platforms based on licensed spectrum have higher power, but require provider provided CPE O Unlicensed platforms operate at lower power, but can be compatible with standard Wi-Fi devices O Most WISPS struggle to provide speeds greater than 50Mbps O Newly introduced platform boasts user radios capable of supporting 800Mbps o Micro -cell fixed wireless O "5G" technology uses licensed spectrum and fiber fed access points to offer 1Gig service O Up to 4Gig speeds possible under ideal conditions and optimal spectrum usage O Access points are limited to 1,000 foot radius or less to achieve building and foliage penetration O Feeding access points with fiber would virtually result in a "fiber to the curb" buildout 1/10/2023 Study conducted by Uptown Services, LLC UPTOWN ELECTRIC UTILITY APPLICATION ANALYSIS SERVICES,LLC o TDPUD has comprehensive plan for electric and water technology integration O Advanced SCADA systems for electric and water O Advanced metering infrastructure (AMI) for electric and water o Future fiber deployment planned O Current fiber plan calls for expansion of the existing fiber network O Expansion designed to support fiber -based connections for strategic assets O Any future commercial broadband network could be used to support electric and water applications o Future utility applications that could be supported by broadband deployment O General SCADA system expansion O Distribution / grid automation for active monitoring and control of key assets O Monitoring and controlling distributed generation assets (micro -grids) O Increased backhaul capacity for water and electric AMI collectors O Near real time monitoring of electric and water meters O Monitoring and control of demand side management devices 1/10/2023 Study conducted by Uptown Services, LLC 49 Task 3 —Targeted Technology Deployment TDPUD Communitywide Broadband Study Broadband Technology Deployment 4 N n w_ E e F " oo��af wx� _- Legend FCC 477 Broadband Capability Reporting Technology, Provider, TDPUD Service Locations DOCSIS 3A (Cable Modem), Optimum, 11,414 Fixed Wireless, Oasis, 97 Asymmetric xDSL, AT&T, 61 a ' ADSL2, ADSL2-r, AT&T, 18 None, No Provider, 125 i, HERE, Garmin, USGS, Intermap, INCREMENT P, NRCanEsri Ja , \` TDPUD Service Locations ang A��r�r Esri Korea, Esri(Thailand),NGCC,© OpenStreetMop contributors, Date: 11111/2022 UPTOWN SERVICES,LLC 0 0 0 0 CURRENT BROADBAND ENVIRONMENT Broadband technology deployment O Data sourced from California Interactive Broadband Map (broad band map.ca.gov) O Census block level reporting from service providers O Reporting the maximum advertised download speed and technology in use Providers O Optimum has deployed DOCSIS 3.1 cable modem technology capable of 1Gig download O AT&T is relying on copper -based DSL technology with most downloads less than 10Mbps O Oasis Broadband uses fixed wireless technology to deliver downloads 50Mbps or less Coverage O Optimum covers nearly all census blocks covering 11,414 TDPUD service locations O Oasis is the best service option for 97 service locations where Optimum did not report serving O AT&T is the best option for 79 service locations where neither Optimum nor Oasis reported serving O 125 service locations were in census blocks with no reported service provider Summary O 11,511 service locations are served according to the State of California Broadband Office O 204 service location are underserved according to the State of California Broadband Office O See market research report for test results from actual broadband subscribers O Actual test results demonstrate that advertised speeds are overstated 1/10/2023 Study conducted by Uptown Services, LLC UPTOWN OUTSIDE PLANT ASSESSMENT / RAMIFICATIONS SERVICEs,LLC o TDPUD aerial outside plant environment is untenable for FTTP construction O Make ready (pole replacement) costs drive the cost of aerial construction beyond feasible levels O Other Uptown projects are encountered make ready costs in the range of $500 - $1,000 per pole O TDPUD is projecting $14,253 per pole for pole replacements which translates to $124 per path foot O The cost of pole replacements alone will equate to $7,564 per service location passed o New underground construction is generally cost prohibitive for FTTP O Soil conditions are variable O Terrain is challenging in many areas O Broad -gauge estimates for conduit placement are very high ($100 per foot) o Underground drops O Underground drops are pervasive in aerial system O Burying drops to these homes will significantly increase installation costs compared to aerial o Spare conduit offers great value for FTTP construction O Most underground service locations (1,092 out of 1,410) are passed by some form of spare conduit O Vaults, pedestals and handholes will need to be installed in areas with spare conduit O Conduit systems will then need to be rodded and roped prior to pulling fiber O Some limited path creation may be required depending on the final network designs o Uptown will complete sample designs to quantify construction costs 1/10/2023 Study conducted by Uptown Services, LLC Task 3 - Fiber to the Home Reference Architecture UPTOWN SE RV ICES.LLC Internet Connection Terminal FTTP REFERENCE ARCHITECTURE a 0 1/10/2023 Study conducted by Uptown Services, LLC UPTOWN SERVICES,LLC o Outside World — Content NETWORK BACKBONE AND CORE O Two physically diverse Internet backbone connections desired O Video content would come in over one or both Internet connections O Phone would also route over one or both Internet connections o Network operations center(s) O Uptown assumes that TDPUD would deploy at least two FTTP equipment sites O Sites ideally be at least 12'x20' stand alone shelters with standby power and redundant HVAC O Sites would house system routers (one each) and the FTTP optical line terminals for the areas served O Sites would be located on the primary fiber backbone to enable connections outside of Truckee o Core Network — Layer 3 O Core network safely routes traffic to and from the outside world O Border Gateway Protocol (BGP) routers connect to the Internet O BGP routers deployed in pairs O Typically installed on backbone network in physically diverse locations O Each router connects to at least two Internet backbone providers o Optical Line Terminals (OLTs) O An OLT combines all digital content onto PON ports O Typically requires environmentally controlled space O One Chassis can serve up to 1,024 connected ONTs (subscribers) O OLTs typically connect upstream via multiple 10G uplinks 1/10/2023 Study conducted by Uptown Services, LLC 56 UPTOWN FEEDER AND DISTRIBUTION NETWORKS SERVICEs,LLC o Feeder network O Feeder connects distribution network to serving OLTs O Typically one feeder fiber per 32 passings (PON port) O z 400 feeder fibers would be required to service 12,000 passings O All feeder will route in and out of the serving site o Splitter cabinet O Splitter cabinets deployed at the neighborhood level O Cabinets serve as the transition point from the feeder network to the distribution network O Splitters are housed in the cabinet O One fiber per home / business passed (passing) terminated on the field side of the cabinet o Distribution network O Distribution cables sized to accommodate 100% adoption with spares O Drop terminals are connected to distribution fibers to serve four to 12 subscribers O Drop terminals are connectorized to reduce splicing during the install process o Service drops O Service drops are installed after a subscriber signs up for service O Service drops are installed in the same manner as other communications drops (underground or aerial) O Drops transition to inside wiring on the side of the dwelling O Optical network terminals (ONTs) are installed inside 1/10/2023 Study conducted by Uptown Services, LLC UPTOWN SERVICES,LLC Z!3 Drop �- Terminal Splitter Cabinet Four cell micro -duct conduit Mainline distribution fiber Terminal tail fiber DISTRIBUTION SYSTEM BUILDING BLOCKS Splice o Splitter Cabinet ■ Small cabinet mounted on vault lid ■ Approximately one cabinet for every 250 homes ■ Connects backbone and distribution systems o Mainline Distribution Fiber ■ High count micro -fiber installed throughout neighborhood ■ Cable sized to serve 100% of homes 0 o Underground Distribution System ■ Four cell micro -duct installed vault to vault ■ Use of micro -duct minimizes vault and handhole sizing • Distribution and drop fibers installed in micro -ducts Terminal Tails ■ Terminal have built-in fiber cable tail, cut to length ■ Terminal tails connect to mainline distribution cable Splice Points ■ Tails fusion spliced to distribution cable using splice points ■ Splice points installed in 24x36x24 vaults in right of way 1/10/2023 58 UPTOWN SERVICEs,LLC Right of Way Drop Fiber Drop Terminal Test Access Point o Drop Terminal ■ Drop terminals connect service drops to the distribution network ■ One terminal serves between two and eight homes ■ Mounted in grade level handhole in public right of way o Drop Fiber ■ Drops only installed after subscriber orders service ■ Drop conduit installed from terminal handhole to premises ■ Fiber drop pushed or pulled in shallow drop conduit SERVICE DROP BUILDING BLOCKS Private Property Indoor Fiber Living Unit Optical Network Terminal Wl-Fl Smart Phones • Smart TVs • PCs Ethernet Home Routers Phone Landline phon o Test Access Point (TAP) r4 ■ TAP mounted on dwelling ■ TAP provides demarcation between outside and inside fiber (bulkhead) o Optical Network Terminal (ONT) ■ ONT installed indoors ■ ONT converts optical signal to standard formats ■ Internet, phone and video streaming supported 1/10/2023 f Task 3 - Fiber to the Home Sample Designs UPTOWN SERVICES,LLC OUTSIDE PLANT COST ASSUMPTIONS o Aerial construction O $4.00 per foot for strand placement in communications zone O $2.50 per foot for lashing each cable to the strand o Make ready O 80% of all poles will be replaced O $20,000 replacement cost per primary pole O $10,000 replacement cost per secondary pole o New underground path creation O $100.00 per foot composite for conduit placement (100% boring) O $0.75 per foot for tin HDPE conduits O Per structure adder for all vaults and handholes O Structure sizing minimized with no use of pedestals o Fiber placement O $2.50 per foot labor to install fiber cable in conduit system O Fiber material costs based on recent quote o Technical services O $35 per fusion splice O $350 - $450 closure prep for terminals, splice points and feeder taps o Material pricing assumptions O Fiber, terminal and structure pricing based on recent vendor bids O Labor estimates based on prior Pacific Northwest projects / bids 1/10/2023 Study conducted by Uptown Services, LLC 61 TDPUD Communitywide Broadband Study an9 F a - -1 1� j Sk.L. r Cslp br e� �°pr pti Tahoe Donner Z5 � Ci.niei � p�q f 1. 'o `i Rd an7 anrQv S%a a € 0epelt FV n v oovps pr pr Abler C-1, Rd N W F, %L.k.vim 2 v, v- S O a f � Prosser,Lakeview 1 0 0 1 Grays Crossing, Q ado- HiuRa pacx p` v` 'h+a11 y S 6 p COPe Mh wpr Davosp Tetan WxY 401 Herringbone Way Siri slpa'© ,c Blvd SMislePa WaY e v: a Tv - \. E oncer C .. tl...-� spa f',lenunrr`p Donner Lake uc ae R er ' hl�adow f'�rr R�i-MI Park s�crra ur Trutkea Donna, Par.ead Bpe to - re Y�babonner Y Srmll�, V it la ge�,G reen iple Design Areas v er Creek � � c q` er Lake r••,, u r� a o' i�. yv llri , ,.i.; Qe• - Donner Creek -----io,. :Crossing - - --- - - ---o 1 �,,e� Pry e W, H Jc X i, HERE, Garmin, USGS, Intermap, INCREMENT P, IN Can, Esri Ja I. O Earl Korea, Esri (Thailand), NGCC,io Ope;'Sl'09 Map contributors, D erin ate:11l1112022 TDPUD Communitywide Broadband Study Leg Encl `J SpIICe c� T - nal Fiber Cable - - - - Drop 12 Fiber Cable 24 Fiber Cable — 46 Fiber Cable — 96 Fiber Cable 144 Fiber Cable TDPUD Service Location * Tree Pathways - - - - strand Structures CDrop Struoture H❑ Handhale n Splice Vault ---- 21N Conduit Donner Lake Sample Area - Aerial Front Lot N ti esign Metric Value Aerial Plant Miles 7.2 [New ew Underground Plant Miles 0.0 Aerial 100% % UG 0% Passings 280 Passings per Mile of Plant 39 Materials Cost per Passing $334 Labor Cost per Passing $1,080 Total Cost per Passing $1,415 Total Materials (no drops) $93,595 Total Labor (no drops) $302,533 Total Cost $396,128 i. HERE. G—in. 11SGS, InW—p. INCREMENT R NRCan. Esri Ja Esri Korea Esri (Thailand), NGCC, ® Cpen6treetMap contributors Date- 11111l2022 TDPUD Communitywide Broadband Study Tahoe Donner Sample Area - Aerial Front Lot N ti Design Metric Value New Aerial Plant Miles 8.1 New Underground Plant Miles 0.0 % Aerial 100% % UG 0% Passings 268 Passings per Mile of Plant 33 Materials Cost per Passing $359 Labor Cost per Passing $1,057 Total Cost per Passing $1,417 Total Materials (no drops) $96,345 Total Labor (no drops) $283,393 Total Cost $379,738 U Na"W. — 48 Fiber Cable n Splice Vault — 96 Fiber Cable ---- 21N Conduit c — 144 Fiber Cable .HERE, Garmin. 11SGS, InW—.p, INCREMENT P, "RC- Esri J. TDPUD S.,— tnaaeon t e �P�Q�n Esri Norea. Esri (Thailand), NGCO © Cpen6treetm p contributors DBtE' 11111I2022 TDPUD Communitywide Broadband Study Legend Enclosures Spill Cal Splice c� Terminal Fiber Cable ---- Drop 12 Fee, G 24 Fiber C+ — 46 Fiber Ci — 96 Fiber C: 144 Fiber Cable Ti Service Location Prosser Lakeview Sample Areas - Aerial Rear Lot N lV ti i. HERE. G—in. 11SGS, Inlari INCREMENT R NRC- Esri J. Earl Norea. Esri (Thailand), Nccc, ® OpenStr Vdi, contributors Date' 11111I2022 Design Metric New Aerial Plant Miles New Underground Plant Miles % Aerial % UG Passings per Mile of Plant Materials Cost per Passim Labor Cost per Passing Total Cost per Passing Total Materials (no drops) Total Labor (no drops) Total Cost Value 15.5 0.0 100% 0% 485 31 $312 $986 $1,298 $151,363 $478,093 $629,456 TDPUD Communitywide Broadband Study p rT p T — 9L�, fZ 0 ro tT r , 0 T LT; u� S, v Legend Enclosures Poles Spill Cabinet + Primary Secondary Splice Tree C� r retinal Pathways Fiber Cable ____ strand ____ Drop Structures k 12 Ei — ber Cable Structure — 24 Fiber Cable HeDrop to H❑ i le — 48 Cable n Splice Vault — 96 Fiber Cable ---- 21N Conduit — 144 Fiber Cable TDPIJD Service Location Grays Crossing Sample Area - Underground N f o r4�T'l• i. HERE, Eari Kb, of JSGS, 1,W—ap, INCREMENT P i. Eari J. (Thailand), NGCC, s operStreetMap cpntriburors Date; 11111l2022 Design Metric Value New Aerial Plant Miles 0.0 New Underground Plant Miles 5.8 % Aerial 0 % UG 100% Passings 278 Passings per Mile of Plant 48 Materials Cost per Passing $278 Labor Cost per Passing $746 Total Cost per Passing $1,024 Total Materials (no drops) $77,310 Total Labor (no drops) $207,488 Total Cost $284,797 TDPUD Communitywide Broadband Study Grays Crossing Sample Area - Underground y p N p"r, nIT Design Metric Value to Ty New Aerial Plant Miles T,. - New Underground Plant Miles 5.8 r � I a �I % Aerial 0% "T< ' T % UG 100 % o� Passings 278 T Passings per Mile of Plant 48 �. 7 Materials Cost per Passing $1,039 T r Labor Cost per Passing $12,944 s Total Cost per Passing $13,983 Legend _ Total Materials (no drops) $288,716 Enclosures Poles Total Labor (no drops) $3,598,444 ;r- 1 Spill Cabinet � Primary Secondary Total Cost $3,887,160 Splice T— Fiber Terminal < Fiber Cable Pathways T. ---- Strand ---- Drop 12 Fiber Cable Structures _ 4Drop Structure —24 Fiber Cable P - T - Hei le r" —8 Fiber Cable '¢ ' — 96 Fiber Cable n Splice Vault t ---- 21N Conduit 144 Fiber Cable J r� rrrr•+++ . HERE. Ganfiiili' 11SGS, Imermap, INCREMENT P NR�- Eeri Ja 7DPU❑ Service Location r - Esri Kore1�(Eri (Thailand), NGCC, s OpenStreetMap contributors uPT��r Date; 11111l2022 TDPUD Communitywide Broadband Study Village Green Sample Area - Underground o s . B % N eeA� Porrle ioaa lV y Ra a II 'sure+ � y 'W yr, IT Legend Enclosures Poles Spill Cabinet 4- Primary Secondary C spree Tree C� r retinal Fiber Cable Pathways . Piu. -4 if ---- Strand ---- Drop Pine is Structures 12 Fiber Cable 24 Fiber Cable pfOl' Structure - 48 Fiber Cable H❑ Hei le - 96 Fib., Cable n Splice Vault - ---- 21N Conduit - 144 Fiber Cable ` �/ . HERE, Garmin, 11SGS, In�rmap, INCREMENT P, NRCan. Esri Ja TDPUD So-- L ..bun uPTov+'n Earl Korea. Esri (Thailand), NGCC, a CpenStreetMap contributors pate• 1111112022 Design Metric Value New Aerial Plant Miles 0.0 XT—n T Tv,rl—„ h-4 PI-1- A/Ti1oc 1 'I % Aerial 0% % UG 100% Passings 106 Passings per Mile of Plant 96 'k X— `-- , — I — r' — —, -- --- 'n— --=-- — m c n-t Labor Cost per Passing $6,639 Total Cost per Passing $7,210 Total Materials (no drops) $60,514 Total Labor (no drops) $703,769 Total Cost $764,283 TDPUD Communitywide Broadband Study Legend Enclosures Spill Cabinet Splice c� T.-n.1 Fiber Cable ---- Drop 12 Eiber Cable 24 Fiber Cable — 46 Fiber Cable — 96 Fiber Cable — 144 Fiber Cable TDPUD Service Location Po 4 4 Pa Sill l� `. n Splice Vault ---- 21N Conduit Donner Creek Sample Area - Underground N W+I S i. HERE. G—in11SGS, ktann.p, INCREMENT P NRC- Esri Ja ' Earl Kohn. Esri (Thailand), NGCC, C CperStreetMap contributors Date' 11111,2022 Design Metric New Aerial Plant Miles New Underground Plant Miles % Aerial % UG Mile of Plant Materials Cost Labor Cost per Total Cost per Total Materials Total Labor (nc Total Cost Value 0.7 0% 100% 79 110 $672.07 $6,333.55 $7,005.62 $53,093.70 3500,350.1� UPTOWN SERVICES,LLC FTTP OSP CAPITAL BUDGET ESTIMATE New New Passings per Materials Labor OH UG New Mile of per per Sample Design Area Miles Miles Passings Plant Weight Passing Passing Total per Passing -- 1- - - -- V - -- - V - V- ----- - ----- ----------11 Last mile OSP capital budget required to pass 13,397 service points = $26.4M Does not include capital budget for backbone and feeder systems Does not include make ready, engineering and subscriber installation costs 1/10/2023 Study conducted by Uptown Services, LLC 70 UPTOWN SERVICES, LLC Capital Bu Item FTTP OSP CAPITAL BUDGET ESTIMATE Total Capital Notes Full system design and OSP engineering required to generate final capital budget Does not include subscriber drops or equipment Does not include retail service provider equipment and systems 1/10/2023 Study conducted by Uptown Services, LLC Task 3 - Fixed Wireless Technology UPTOWN FIXED WIRELESS PLATFORM CAPABILITIES SERVICES,LLC o Traditional fixed wireless deployment approach O Macro -cellular system that serves hundreds of subscribers from a single tower site O Line of site requirements to achieve best throughput O Susceptible to obstructions between tower and service location (trees, buildings, terrain, etc.) O Predominantly license -free spectrum O Service levels typically in the range of 50Mbps 0 5G micro -cellular platform O New technology enabling 1Gig speeds under ideal conditions O Requires system access points to be within 1,000 feet of service location for maximum throughput O System access points must be fed with fiber optic connection to achieve maximum throughput O Licensed 5G frequency range makes building and tree penetration challenging o Hybrid fixed wireless approaches are emerging - Tarana O License -free and lightly licensed systems being offered O One base station can deliver 9.6Gbps aggregate throughput to 1,024 subscribers within a one -mile radius O Current subscriber radios have 800Mbps downstream capability O 3GHz option offers higher power and better penetration of obstructions than license -free alternative o Implications for TDPUD O 5G would require virtually the same amount of last mile fiber as a FTTP deployment O Traditional macro -cellular is already in use by Oasis with limited effect O Tarana system is ground -breaking new technology that is worth a closer look o Tarana G1 strategy for TDPUD O Deploy four sector base nodes at nine TDPUD wireless sites to achieve broad coverage O Complete signal propagation studies from a minimal number of sites O Evaluate received signal strength at all service locations from nine primary wireless sites O Add additional base nodes at TDPUD wireless sites to optimize coverage and signal throughput 1/10/2023 Study conducted by Uptown Services, LLC UPTOWN SERVICES, LLC TARANA G1 SERVICE LEVEL SUPPORT 1/10/2023 Study conducted by Uptown Services, LLC 74 UPTOWN SERVICEs,LLC o Tarana reference architecture TARANA DEPLOYMENT ASSESSMENT O One base station sector supports up to 256 subscribers with 2.4Gbps O Up to four base station sectors at each site connected to 10Gbps switch O New fiber switch deployed at each site O Total cost per existing wireless site to add Tarana estimated to be $100K - $150K O Approximate cost per passing of $120 O Typical subscriber install estimated to be $1,000 materials and labor o Frequency use O 3GHz range is optimal for trees and non -line of site connections O 3GHz range is administered by Google via the Spectrum Access Service (SAS) O Operators request bands in the 3GHz from SAS and pay per connected subscriber for use O Monthly per subscriber fees range from $2.25 to $3.00 o Nine base nodes provides strong coverage O 641 / 143 - 30% coverage across all TDPUD service locations O 520 / 116 - 47% coverage across all TDPUD service locations O 254 / 57 - 86% coverage across all TDPUD service locations O 77 / 17 - 98% coverage across all TDPUD service locations O < 77 / 17 - 2% coverage across all TDPUD service locations 1/10/2023 Study conducted by Uptown Services, LLC 7S UPTOWN SERVICEs,LLC o FTTP will be very expensive TECHNOLOGY SUMMARY O Aerial make ready costs exceed anything Uptown has seen in the past 25 years O Underground construction costs are extremely high as well O Neighborhoods with spare conduit have high potential for further analysis o Wireless has promise comparatively speaking O 5G deployment will face the same cost hurdles as FTTP O Traditional macro -cellular will not have the capability to support service levels over 100Mbps O Tarana platform offers a fresh approach that could complement a limited FTTP deployment o Next steps as part of detailed feasibility study O Fine tune aerial make ready costs O Fine tune underground construction costs O Define throughput objectives for wireless service offering(s) — speeds and % coverage O Add base node sites to Tarana plan to achieve throughput objectives O Complete outside plant designs for areas with spare conduit O Complete wireless system design O Complete revised fiber backbone required to support FTTP and wireless designs O Develop detailed capital budgets 1/10/2023 Study conducted by Uptown Services, LLC 76 TASK 4: Potential Funding Sources UPTOWN SERVICES,LLC ARPA: STATE AND LOCAL FISCAL RECOVERY FUNDS The American Rescue Plan Act of 2021 (ARPA) is a federal grant program available to public sector entities that includes funds for the construction of broadband infrastructure, along with numerous other programs... • Total program funds of $35013 were allocated to various governmental jurisdictions: • States: $19513 • Counties: $6513 Program • Cities: $4513 Overview • Tribal Governments/Territories/Other Local Government: $4413 • Funds investment in broadband infrastructure (build or upgrade) • Funding starts March 3, 2021. Funds must be "obligated" by December 31, 2024 • Program rules issued by Department of the Treasury with Final Rule effective April 1, 2022 • Necessary investment: Service area is eligible if there is an identified need for additional broadband infrastructure investment (e.g. lack of reliable 100M symmetrical speed) using data Eligible Use methods from speed tests, federal or state maps, interviews and surveys. of Funds • Minimum level of service: Minimum speed of 100Mbps symmetrical • Labor standards: Local hiring, prevailing wages, and safety and training standards • Affordability: Service provider participation in qualifying affordability plan • Priority given to projects that provide last mile connections using wireline technology Project • Construction contracts should reflect prevailing wages and robust labor standards Prioritization • Project ownership, operation, or affiliation with local governments or cooperatives • Avoid service areas under existing funding commitments via federal or state grants 1/10/2023 Study conducted by Uptown Services, LLC UPTOWN SERVICEs,LLC BROADBAND EQUITY, ACCESS & DEPLOYMENT PROGRAM The Broadband Equity, Access, and Deployment Program (BEAD) is a federal grant program that includes funds broadband deployment, mapping, and adoption projects... Program Overview • $42.513 in total funding to be allocated at the state level • Planning and project prioritization through state broadband offices which are tasked with developing 5 year action plans . program oversight at the state level with federal implementation and support via the National Telecommunication and Information Administration (NTIA) • The 50 US states and territories are eligible grantees that can award BEAD grant funds to 'subgrantees' including coops, 3P partnerships, PUDs, and private firms, local governments, etc. Eligible • Last mile infrastructure projects must target un- or underserved areas where 80% or more of Use of households do not have access to a minimum of 100Mbps/20Mbps. Funds • State broadband offices are expected to begin accepting applications during the first half of 2023 • While up to each state, we expect alignment with ARPA rules for determining eligible service areas • Funding recipients will be required to collect and maintain data to help the NTIA assess the programs' impact, evaluate targets, promote accountability and coordinate with other federal and Likely state programs Guidelines • Criteria to assess grant recipients' plans to ensure that service providers maintain or exceed thresholds for reliability,quality of service sustainabilit u radabilit and other required service q Y � Y, pg Y q characteristics • Criteria to ensure that funding is deployed in a way that maximizes the creation of "good paying jobs. 1/10/2023 Study conducted by Uptown Services, LLC i5 UPTOWN SERVICES,LLC RECONNECT PROGRAM The ReConnect Program provides loans, grants, and loan/grant combinations to bring high speed Internet to rural areas, including infrastructure projects... • The program is funded through funding rounds with Round 4 closing on November 2, 2022 • Program oversight at the U.S. Department of Agriculture (USDA). Round 4 funds up to: Program • $150M in loans Overview • $300M in loan/grant combinations • $700M in grants • Eligible grantees include both public and private sector entities • Eligible service areas must be both a) Rural*, and b) 50% or more of households must lack sufficient access to broadband, defined as "fixed terrestrial broadband service at 100 Mbps downstream and Eligible 20 Mbps upstream Use of • For a 100% grant (with no loan), the applicant must demonstrate that at least 90 percent of homes Funds in the proposed service area do not have sufficient access to broadband • Program funds can be used for the construction or improvement of facilities capable of delivering 100 Mbps symmetrical service to every premises in the proposed service area at the same time Other • Awardees will be required to participate in the federal ACP program Guidelines • Projects funded by a 100% grant require a 25% match *Service areas cannot be located in a city, town, or incorporated area with a population greater than 20,000, or an urbanized area adjacent to a city or town with a population greater than 50,000. 1/10/2023 Study conducted by Uptown Services, LLC 80 UPTOWN SERVICES,LLC CALIFORNIA LOCAL AGENCY TECHNICAL ASS ISTANIr The Local Agency Technical Assistance program provides a total of $50M in grants for planning work that will support high speed Internet infrastructure projects within California... • The Local Agency Technical Assistance grants support tribes and local agencies in their efforts to expand broadband service to unserved and underserved Californians Program . Program created via Senate Bill 156 with oversight by the California Public Utilities Commission Overview • Eligible grantees include either local government agencies, counties, public utility districts, and tribes within California • Technical assistance grants will reimburse pre -construction expenses for projects that support Eligible developing broadband service Use of o Application scoring will be most favorable to projects targeting unserved and underserved Funds households or businesse , which means one or more households or businesses that are not currently served by a wireline connection that reliably delivers at least 25 Mbps download and 3 Mbps upload speed. • Examples of expenses that may be reimbursed: Other • Consultant or staff time for environmental studies, network design, engineering studies, Guidelines needs assessments, and broadband strategic plans • Costs incurred in forming a joint powers authority for bringing broadband to communities in need. 1/10/2023 Study conducted by Uptown Services, LLC UPTOWN SERVICES,LLC BROADBAND IMPLEMENTATION FOR CALIFORNIA In July 2021, Senate Bill 15B provided $BB in state funding for equitable access to high-speed broadband to unserved and underserved populations in California... • The funding allocation provides $3.2513 for middle mile open access projects and $213 (via Federal Program Funding Account) for last mile infrastructure projects (California Advanced Services Fund) Overview • Program oversight at the California Public Utilities Commission • Program funds source is ARPA federal dollars • Eligible Areas are those unserved by a wireline provider that can reliably provide 25/3 Mbps service Eligible CPUC must allocate at least half of the $2 billion for last -mile projects in rural counties. Each county, Use of whether rural or urban, will receive an initial allocation of $5 million in funding. Remaining funds Funds will be allocated based on the county's proportionate share of households without access to at least 100Mbps Internet. Other Funds must be encumbered by 2025 and expended by 2027 Guidelines CPUC plans to publish priority project areas composed of unserved locations. 1/10/2023 Study conducted by Uptown Services, LLC UPTOWN SERVICES,LLC CALIFORNIA ADVANCED SERVICES FUND The CASF program was created in 2007 and modified by Senate Bill 15B to allow the CPUC to receive funds of up to $150M annually for the program. The fund covers 5 different uses — one of which is broadband infrastructure • Priority and 100% grant funding available for areas with no Internet connectivity. Areas with Program Internet connectivity eligible for 60% grant funding, with potential for increased funding in low Overview income areas or inaccessible locations • Program oversight at the California Public Utilities Commission Eligible • Funds may be used for middle -mile and last -mile projects. Middle -mile projects must be Open Use of Access for the lifetime of the infrastructure to qualify. Funds • Grant eligibility includes requirements regarding pricing (fixed for 5 years), speeds (minimum of 100M/20M), affordability (ACP participation), and avoidance of data caps. Other • Eligible entities include public utility districts Guidelines • As of the end of 2021, there have been 108 infrastructure projects funded with a total of $348M and averaging $4,112 per household. 1/10/2023 Study conducted by Uptown Services, LLC UPTOWN SERVICES,LLC TYPICAL NON -GRANT FUNDING SOURCES 1. Long Term Bond O Single round of financing via 20-year tax exempt revenue or GO bond O 3 years interest of capitalized interest O 1.5% issuance cost 2. Working Capital Loan O 10 year term O Interest accumulates over first 5 years with Year 6 balloon payment O Level payments begin in Year 6 and complete in Year 10 3. Wholesale fees paid by the ISP under wholesale partnership models O Monthly fee per connected end user, or O Monthly fee per connection and per serviceable premises 4. Equity O Either upfront or ongoing annual general fund contributions O Equity can fund construction capex requirement and/or working capital requirement 5. Local Improvement District O Monthly fee assessed to all residential premises as they become serviceable O Assessed for full 20 years 6. Private Philanthropy 7. Customer -funded installation (either upfront or amortized into monthly recurring fee) 1/10/2023 Study conducted by Uptown Services, LLC TASK 5: Potential Business Structures Overview UPTOWN SERVICES,LLC BROADBAND INVESTMENT GOALS Ultimately, the value of a broadband infrastructure project to the community depends upon balancing the tradeoffs between the project costs/risks versus the specific improvements to broadband that can be realized... Investment Goal: Maximize impact of the infrastructure investment while minimizing financial and operational risk o Value to the community becomes a function of O Last -mile capacity deployed and available to each end user O End user prices and savings compared to incumbents O Services terms compared to incumbents (e.g. data caps, contract termination fees, etc.) O Support of future uses/applications to serve the community o Minimizing risk becomes a function of the characteristics/differences between business models O Total investment required and associated debt service levels over time O Predictability and robustness of the anticipated revenue stream O Differences in revenue versus operating expenses (operating cash flow) O Avoiding any need for secondary financing (sufficient minimum cumulative cash over the life of the project) 1/10/2023 Study conducted by Uptown Services, LLC UPTOWN TDPUD IDENTIFIED BUSINESS MODEL OPTIONS SERVICEs,LLC TDPUD staff identified four potential business models for ownership and operation of the broadband system within the RFP. These models differ regarding the allocation of ownership, funding, and system operation between the District and the partner entity. Options 2 and 3 are the same model but with different funding sources... 1. Open Access Partnership - TDPUD Owned but Not Operated O TDPUD would finance and contract to build the network and invite other service providers to contract to deliver services over the network 2. Public/Private Partnership — Private Operator Ownership and Operated O TDPUD would typically share some funding of the project or provide other contributions and rely on a private sector partner for operation 3. Co-Op/ISP — Member Ownership and Private Partner Operated O TDPUD would assist with securing financing via grant funding and/or Local Improvement District long-term financing 4. Ownership Model - TDPUD Owned and Operated Network O TDPUD would build and operate the network. This model has two subset options whereby TDPUD performs all operating functions, or an option where an 'operating partner' performs some functions (essentially long-term outsourcing) 1/10/2023 Study conducted by Uptown Services, LLC UPTOWN SERVICES,LLC "SUMMARY OF BUSINESS MODEL OPTIONS WHOLESALE RETAIL � Public -Private Open Access Partner Operates TDPUD Operates Partnership* Ownership TDPUD TDPUD & ISP Partner TDPUD District funds capex for District funds capex for Funding District funds capex for broadband infrastructure (e.g. fiber broadband infrastructure, broadband infrastructure, Responsible backbone for wireless backhaul or last -mile connectivity) working capital, and some working capital, and all operating expenses operating expenses Equity: TDPUD equity, ISP partner equity Equity: TDPUD equity Potential Debt Financing: GO bond, revenue bond Debt Financing: GO bond, Funding Federal/State Grants: BEAD, ARPA revenue bond Sources Other: Local Improvement District Other: Local Improvement District District is service provider. Operating Partner provides customer care, Role of Partner is the service provider. The District only co -brands & help desk, outside plant District is service provider and maintains backbone/backhaul infrastructure maintenance/outage response, performs all operating functions District and network management/administration. All revenue retained by the District All revenue retained by the Partner. The District compensated with District. Partner compensated All revenue retained by the Revenue monthly fee per passing and/or connected end -user. with monthly fee per connected District Source end -user. 1/10/2023 *Commonlyobbrevioted os PPP or3P. Study conducted by Uptown Services, LLC UPTOWN SERVICES,LLC BUSINESS MODEL OPERATING ROLLS Under the wholesale models, the Retail Service Provider (RSP) performs all operating functions downstream from the network backbone demarcation point. Under the Operating Partner model, those functions that can leverage operating partner staffing and expertise are outsourced... Function Operational Responsibility Wholesale 3P Retail (Partner Operates) Retail (TDPUD Operates) Network Assets Backbone and Backhaul Assets District District District Network Electronics RSP Fiber Drop (FTTP only) RSP Modem/Receiver and Inside Wiring RSP Network Admin & Maintenance Network Administration ISP Backbone and Backhaul Assets District District Electronics RSP Outage Response District ISP Bandwidth Backbone Interconnection RSP Software OSS/BSS District OSP Management District & RSP Marketing & Promotion Advertising, Sales, Branding RSP or 3rd Party Community Engagement District & RSP End User Pricing RSP Customer Operations Help Desk, Service Calls, Billing RSP or 3rd Party ISP Customer Installs and Disconnects RSP District 1/10/2023 Study conducted by Uptown Services, LLC 89 UPTOWN SERVICES,LLC TYPICAL FINANCIAL TERMS STRUCTUF While financial terms vary, typical remuneration structures implemented for municipal broadband system partnerships reflect the following... Business Model Open Access 0 � Public -Private partnership* Partner Operates TDPUD Operates Two Models: A) Premise passed fee (e.g. $6/month) & connected premise Wholesale fee (e.g. $17/month) Fees - or - Not Applicable Paid by Service Provider B) Connected premises fee only (e.g. $35-40/month) Fees apply whether business or residential connection Outsourcing Monthly fee per Fees connected premises (e.g. Not Applicable $10-$25 depending on Not Applicable Paid by Network term and operating Owner scope) 1/10/2023 Study conducted by Uptown Services, LLC UPTOWN SERVICES,LLC BUSINESS STRUCTURE TRADECIFFc While the advantages of the Wholesale Model center around lower investment and organizational load, the Retail Model can provide greater value to the community through more control of the service offering and customer service experience... (D (2) Q. Wholesale Model Advantages Retail Model Advantages Total Capex Capex requirement varies but is typically no greater then Required 80% of the Retail Model. Some 3P partnerships have been 100% funded by the private sector operator. Operating Opex requirement varies but is typically no greater than 10- Expense 20% of the Retail Model. Revenue Revenue drops under the Wholesale Model to typically 25-35% of the annual revenue under the Retail Model. Penetration Due to higher end user price levels compared to Retail models and Rate typically lower brand preference, penetration is lower. Staffing Minimal staffing of 1-2 FTEs compared to typically 10+ Required dedicated FTE under the Retail Model. End User Value Typical price range for 1G is $60-$70 which is typically $10-20 less than monthly Wholesale Model end user rates. End User Terms Typically no data cap and no contracts with termination fees (residential segment) under the Retail Model. Other Risks The Retail Model avoids risk of RSP default or bankruptcy, or RSP failure to complete build -out. ■ 1/10/2023 Study conducted by Uptown Services, LLC TASK 5: Potential Business Structures 3P Wholesale Partnership Examples UPTOWN AMMON, IDAHO OPEN ACCESS EXAMPLE SERVICEs,LLC o Background o City of 5,500 households in eastern Idaho. The city is not the electric provider. o Started fiber infrastructure investment in 2011 after failed ARRA grant application. o Began installing middle -mile fiber to connect city facilities o Launched residential service in 2017 o Business Model is Open Access o City Role: Fund and construct Fiber -to -the -Curb (FTTC) o ISP Role: Provides Internet service and customer support o Customer Role: Customer self -funds installation (fiber drop and equipment) and pays monthly 'maintenance' fee to the City o Current Retail Service Providers (RSPB) and 1G price levels are: o Sumo Fiber— 1G is $25.00/month o Advanced Stream — 1G is $14.59/month o QWK. net — 1G is $49.88/month o FyberCom — 1G is $9.99/month o DirectCom — 1G is $109.95/month o RSP Internet terms are user-friendly with no data caps, contracts, or short-term promotional pricing 1/10/2023 Study conducted by Uptown Services, LLC UPTOWN AMII ON, IDAHO FINANCIAL STRUCTURE SERVICEs,LLC o Phased build -out targeting areas with highest neighborhood -level demand o Residents can register for fiber service via a sign-up page on the city's website (see next slide) o Upon reaching sufficient registered demand, a Local Improvement District (LID) is created to provide funding for FTTC construction of the neighborhood o Residents and businesses can opt into the LID during and up to 30 days after construction (see slide) o The LID structure allows for amortization of the install costs, but post -construction connections are still possible with full payment up front. o This approach is inherently slow. Ammon is still constructing and has opened LIDS #5 and #6. o Sources of Funding o City: Initial investment of $1M that was set aside for the grant match and savings of $69k annually by eliminating lease fees paid to incumbents. No debt. o Customer: o Installation: Average cost is $3,200-$3,600. The LID payment averages $23/month paid for 20 years o Operations/Maintenance Fee: Monthly payment to the City of $16.50 o Internet Service: Monthly fee paid to ISP varies by provider and service tier o Typical total monthly fee per household (participating in the LID): $50-$65 for 1Gbps 1/10/2023 Study conducted by Uptown Services, LLC 0 �J _ ILACKrANYOK Lv - ) �- � ���j"._.•` � �' - � ��� • ' . , _,���s A - - �� Y :/ • f� _�' .10 F . -Ln �- ,- � ORE WALLE . . ._ r ; .|' 4 �, � 0 . i �� dp6 _ . ® � .' '� ■- j_ olLwld.L WEFE_ Sorrr. F J, / CITY OF AMMON 201Z!,1 =CDDVTY, maim Thu Fiber Optic Local Impmtmmkm31 Distinct ti D. 5 Opt -In C r ficate (this "Certificmte'7) s made Ls d e un&miced pmpem, owma(3) ("DRner") for the benefit oft* of Ara 13 n is CauEly Idaho (the "Calf,) and prompem%m Fiber Optic Local Impinumejul DLAwt 13a 5 for Atmnoe6 1ftho i'Finer LID Ilia F). Thu CatGcale a efferbmi a as of the date 9w»a emKutN. qh-m Certificate. WIJEMU, the City antidWs adopfmg within we (1) y,ew. m mrFq a Qeatmg Fiber LID No. 5 fw the purpose of fmaoring the costs and e .pus --es of dead acgi i mm6 com, ctioo and mtal]atwu of outlin fiber optic .;gem impm-eumut and related agmpmmeaamc�- -.r-ft n : iher LID ti D. 5 (collecm-ely, the -3mprorements'): and WABRKkS, once creamd, Frbe LID No. 5 2haU conzdu& a local impmv2mew di mEt Drgimmil and operative pnrsuaw to chapter 17, Title 5A Idaho Code (the "LID Code` }and %W RE S, the City has determmed tt= property owaers desiring in racm a =tanam.. of a Sher optic live to dm r pmpwm, and d—An be benefited by de liap-Eni , -t aff mztnmb- opts to 1-mg the reed mw-mt - to pa for the same, and NFIERE-A&. in wda for the Impf emauL to be omA-ef6e:tv-, a xmT2cierrtraII bu DfCkvre!jdmfi desiring comerr;m to the City hoer Dptic mtmt mnu-t =t Lm a parriv[a ZeDEmphical area 1 fbm the FegMS;re ecaoamies of scale can be lmeraead to mppart the ezpmumt, and %=kS, the City hs not 5m determimed the bom lwies for Fiber LIDNo. 5 and the mmpleticm of thi Certificate w l] scant the City m de[enrizuug the geographic area to be imrluded in File LID No. 5; amd LVHF.RIikS, Oamer scla ledDn thffi Own ;3[Reran ofthm Cwtif ste is iLhmtm- and Vff-EERRkS, smbjed to the provi- o of the LID Code and C&:L completion of all feces -mart paaeeduraL and other aebms the emader, Oahe= Inmambo, Of this Certffbmte m thomes the (a) imaallatiom Df a fiber optic line tD Oaner's pmtpens and (h) die acre —t of Dormers pp-t, p..-uam to the LID Code. N DW TFWJREFDRF, Dower hereby certifies m fnllosys: 1. Thw Omer is the Dsna of that cermin real prapertyidentified belonand has the paa�er avd amhoritt-m exc��roe thi Certificate. 2. That Dona deares tD be benefided by the Imp wmie= aid hereby uuau the City p� to in. -all a ffker optic &Dp cable atthe 2ddre331LAed belay aid to access Onnei sp¢ipertt fa;w2i9r,M and future maiatenance of Dana's fiha optic line. r. That Oawer, Subject m the pmciduas of the LID Code and Cits'S ampleum of all oecem- n procedural and other actin"" tbmeander, acb aledees and agreesthatthe Ci[, mayasaem Csner's pmpert pur-want tothe LM Code to peg Owner s share ofthe cam Dfthe Inrp ,orient. 4. Thar Omner admled�s and uvdersthni that there are a number of legal and pfactical AEW that the City mist cmplete beinre Onmer'3 prvpent' ran rerei4Te a fiber optir lime, and therefte rham On=:3 EMK Trion Of this Cu ficste dae3 not ,var>antm that the City Corral of the Cm- nit be able to create Fiber LID Vo_ 5: that the houndan; DFFiber LID No. 5 will include Owaer' S property, OF the the IuTmn vments m-& be cone mmited and m3oalled. DDT M OR:IELt (iftcw owners both mmmamreS are desired -but enh one owner's meaatmu is requited b•-lawl Sigenm¢e: Sigoamre: Pri.t11T— PrintNanme: Phone: Ihaarl: UPTOWN TING 3P EXAMPLE SERVICEs,LLC o Background o Virtual Wireless Network Operator launched in 2012. Sprint and T-Mobile are their host networks. o Owned by parent Tucows o FTTP Services o Residential: 1G/1G: $89/month + Modem ($200 purchase or $9/mo. lease) + Up to $200 install fee o Commercial: Custom pricing for 1G/1G service depending on SLA, static IPs, etc. o Retail Service Provider for 9 municipal FTTP systems since 2015. Note that while Ting is serving smaller markets, they are not rural: o Charlottesville, VA (18k households) o Westminster, MD (7k households) o Holly Springs, NC (8k households) o Sandpoint, ID (4k households) o Centennial, CO (36k households) o Solana Beach, CA (6k households) o Fuquay-Varina, NC (12k households) o Wake Forest, NC (16k households) O Fullerton, CA (45k households) 1/10/2023 Study conducted by Uptown Services, LLC 97 UPTOWN TING 3P PARTNERSHIP CONTRACT TERMS SERVICEs,LLC o City Role o Design, construction, and maintenance of the fiber network. City retains title to the network. 0 24/7 availability for unscheduled maintenance with 4 hour on -site response timeframe o Network Point of Demarcation o Residential: Exterior wall closest to public ROW o Commercial: Patch panel in telecom closet o Services o Triple Play with Ting providing data service (up to 1Gbps) and 'arranging' for voice and video o Retail rates are at the sole discretion of Ting o Financial Terms o Premise Passed Fee: $6/month o Connected Premise Fee: $17/month o Fees apply whether business or residential connection o ARPU Adjustment: The Connected Premise Fee will increase by $1 for every 10% increase in Ting's realized ARPU (compared to baselined ARPU at 1,500 subscribers) 1/10/2023 Study conducted by Uptown Services, LLC UPTOWN TING 3P PARTNERSHIP OPEN ACCESS TERMS SERVICEs,LLC o Ting is exclusive provider for Phase 1 o `Open Access', but with initial period of exclusivity for Ting for data service. Exclusivity protection lasts until either: o Two years after the launch of each deployment phase service area, or o Penetration reaches 20% and/or Ting achieves 3,000 end user customers (of 7,200 HHs) o Ting operates under 2 roles: Network Operator and Services Provider o As Network operator it is the active wholesaler to unaffiliated Service providers that it will be competing with. The City has no active role with RSPB other than Ting. o Ting will individually negotiate wholesale agreements with each additional RSP. Agreements must be non-discriminatory but terms can vary across these agreements. o As Network Operator Ting will install and maintain all premise inside wiring and CPE, including the ONT. The ONT will be outdoor vs. indoor. o Other Terms 0 10 Year Term with 2 ten year renewal periods o City must renew if actual wholesale revenues exceed debt service by 10% or more o Termination for Convenience: City can terminate with 6 months notice 1/10/2023 Study conducted by Uptown Services, LLC UPTOWN SERVICEs,LLC H U NTSVI LLE ALABAMA o City Role o Provide access to "excess fibers" beyond what Huntsville Utilities requires o FTTP system design, subject to review and approval by Google Fiber o Obtain all required permits o Construction, and maintenance of the fiber network. City retains title to the network. o Network Point of Demarcation o Dark fiber ports originating at a colocation structure o Dark fiber ports terminating at a Multiport Service Terminal or Network Access Point o Services o Not specified in Fiber Network Agreement o Financial Terms o Premise Passed Fee: $5/month per MST port o Premise Passed Fee: $100/month per NAP port o Backbone Fiber Strands: $3,500/month each o Fees apply whether business or residential connection 1/10/2023 Study conducted by Uptown Services, LLC 100 UPTOWN SERVICES,LLC HUNTSVILLE ALABAMA (CONY.) o Construction Timeframes & Milestone Targets o Completion of Phase 1 is due 6 months after design acceptance o All construction completed 3 years from Phase 1 design acceptance o Targeted total premises passed of 105,000 premises upon network completion o Missed milestone penalties o If fewer than 95k premises passed at network completion, 1% of the total lease fee will be credited for each dda ii of delay o If fewer than 75k premises passed at network completion, Google may terminate agreement o Google Fiber (GF) can terminate the Fiber Lease Agreement under multiple conditions o If the City cannot correct design deficiencies within 30 days of GF submitting revisions o If the City cannot provide a video franchise agreement within 3 months of the Lease Agreement, or the video franchise is revoked during the Lease Agreement term o If the City fails to construct and deliver Phase 1 of the network on time o If the City fails to construct the complete network on time 1/10/2023 Study conducted by Uptown Services, LLC TASK 5: Potential Business Structures Personnel Plan UPTOWN SERVICES,LLC STAFFING POSITION DETAILS Staffing Compen- Position Role Location Entity sation Lead manager responsible for all System GM broadband operations and enterprise results Develop and implement direct marketing Marketing Coordinator and fulfillment materials, and manage advertising campaigns. Varies by Exempt FTE Onsite - desk Direct sales to business accounts and Commercial Account Rep installation coordination and MDU ROE Business space needed agreements. Model Network Engineer Secondary responsible for all broadband electronics and systems Phone and email support for work order Customer Service Reps creation, trouble tickets, billing (Tier 1) Non -Exempt Hourly Technical Service Reps Help desk support (Tier 2) Install Techs Complete pre and premise installs Install per Job Contractor leased Contractor garage Maintenance Techs Resolve outage and maintain outside plant Varies by assets Business Model Non -Exempt Hourly City garage operations center Service Techs Complete service calls requiring a truck roll 1/10/2023 UPTOWN ORGANIZATION CHART: TDPUD OPERATES SERVICES,LLC Contractor services should be utilized in the early years to complete some start-up tasks and avoid short term hiring: • Legal: Bond counsel and legal start-up tasks • Consulting: Implementation support (12-18 months) • Installs: Outsourced for 3 years and then internally staffed after install volume normalizes LEGEND Full -Time Employee Install Contractor Professional Services TDPUD Board System GM --i -- I I I I - - J �- - - AV Installl lIff Network MDU/Conn 0 Techs Admi Account Rep Maint TSRs ■ Tech (2) Servic Tech Consulting & Legal Services Outsourcel Customer InstalM CSRs Ar PR/ 1 (3) Marketing Coordinate UPTOWN ORGANIZATION CHART: 3P WHOLESALE Q Q SERVICES,LLC All three variations of wholesale models eliminate the need for TDPUD to staff functions involving the day-to-day operation of the broadband investment. Instead, a single, dedicated FTE to oversee technical, financial, and administrative aspects of the network investment and partnership would be required. Non -dedicated FTE support would also be required for GIS-related infrastructure management and cooperative marketing efforts with the partner... LEGEND Full -Time Employee Install Contractor Professional Service id 'q Staffed TDPUD Board r — —r -- I I I I I Infrastructure Manager �— — — Consulting & Legal Services Outsourcec Customer Installs erI 1 _ Install Network MDU/Com PR / I Techs Admi Accoun CSRs Marketing Rep ( oordinator � I _ Maint TSRs 6 Tech (2) _ Service Tech UPTOWN ORGANIZATION CHART: PARTNER OPERATES SERVICES,LLC By moving from a fully insourced TDPUD retail model to a partner model where some staff functions are long-term outsourced to an operating partner without ownership interest, initial dedicated headcount levels can be reduced by about 7 FTEs... LEGEND Full -Time Employee Install Contractor Professional Service id 'q Staffed TDPUD Board System GM AV Instal Network 0 Techs Admill Ar I Maint TSRs 6 Tech (2) OF Servic 411 Tech 9 --i -- I I I I - - J �- - - MDU/C Accou . Rep Consulting & Legal Services Outsourcel Customer InstalM CS PR/ arketing ardinato TASK 5: Potential Business Structures Operating Partnership Model Benefits UPTOWN SERVICES,LLC L• • \ i , s \ , \ ■ • \ 11 , .T90 Uptown has clients in Utah and Colorado that have negotiated with an existing municipal broadband operator to support the operation of the new system... Ownership Role • District funds capex for the network build, working capital, and all operating of the District expenses • District is 100% owner of the FTTP system. Operating Role of District is the service provider and performs some administrative functions (e.g. the District billing), general management, and on -site account support. • Customer Operations: Partner ISP provides customer care, customer installs and Operating Role of provisioning, service truck rolls, and network maintenance. the Partner 0 Data Network Services: Partner ISP provides network configuration/administration, hardware/software platform, bandwidth , system monitoring. Services Revenue • All revenue retained by the District partner compensated with monthly fee per connected end -user. Partnership Terms • Initial term commitment of 5 years with renewal options • Monthly fee per connected premises (household or business) of $X per month 1/10/2023 Study conducted by Uptown Services, LLC UPTOWN SERVICES,LLC EXAMPLE BENEFITS OF OPERATING PARTNERSHIP In exchange for the ongoing monthly fee to be paid to the Operating Partner, the following reductions in TDPUD's capital and operating expenses can significantly reduce the initial financing required... • Staffing requirement reduced to 2 full-time employees Operating Expense • Bandwidth aggregation to realize scale savings via higher capacity circuit Delay of broadband specific operations support and billing (OSS/BSS) software initial and annual maintenance fees • Generator/UPS is not required • Core switch/router of $200k is not required • Internet service back -office platform of $100k is not required Capital Expense • Testing equipment of $50k is not required • Splicing trailer of $25k is not required • Field technician tools of $23k is not required • Service van ($45k) and bucket truck ($90k) is not required 1/10/2023 Study conducted by Uptown Services, LLC TASK 6: Service Provider Partnership RFI UPTOWN ISP PARTNERSHIP RFI SERVICEs,LLC o Issued to 20 ISPs including national incumbents, fiber backbone operators, regional wireline providers, and regional wireless providers o Services Sought o Internet service of at least 1Gbps symmetrical o Complete community build -out (no 'redlining') o Affordable, value -oriented pricing o Participation in the federal ACP program o Favorable end user terms (e.g. data caps are discouraged) o Local operations center presence within or proximate to the community o Requested Information o Provider background information including similar reference projects and organizational, technical, operational and financial capabilities. o General, non -binding proposed technical architecture, end user service(s), operational plan, and funding options o Preliminary in nature without specific business model, funding, or financial terms included. Any future RFQ should include these and any potential funding or asset contribution(s) by TDPUD to the project. 1/10/2023 Study conducted by Uptown Services, LLC UPTOWN SERVICES,LLC RESPONSE SUMMARY: ALTERNATIVE PROVIDERS We received responses from two alternative providers. both with fiber experience. However 1 1 . 1 . only one proposal was responsive due to a submission error... Oasis Omsoft Overview • Privately -held ISP serving Lake Tahoe areas since 2002 • Privately -held ISP in Davis, CA since 1996 . Primarily fixed wireless but some FTTP deployed • Supports Open Access Financial Strength • 2021 revenues of $1.8M and net income of $130K 2022 revenues of $1.2M and net income of $200K . Assets of $300K Similar Projects • Have been supporting 10 fiber deployments for up to 6 years • Two fiber projects in Yolo County • Management team of 10 FTE Operational • Operations in Truckee and Colfax, CA • Outsourced call center in Central America • End user pricing from $39 (200M) to $89 (1G) • Upgrading wireless technology to 750M symmetrical (next 18 Technical months) • Open to fiber technology options depending upon budget, Not provided (proposal submission cut off after page 2) including fiber and wireless • Rough estimation of $27M for Truckee fiber build Funding • Experience with grant funding and SBA loans • Should consider CASF as funding source 1/10/2023 Study conducted by Uptown Services, LLC UPTOWN RESPONSE SUMMARY: INCUMBENT PROVIDERS SERVICES,LLC We received responses from both incumbent providers. Neither response provided significant detail at this time... Optimum (Altice USA) AT&T • FirstNet: National wireless system supporting public safety in Similar Projects • No similar projects referenced in their response partnership with the federal government • CALNET: AT&T is providing fiber and wireless connectivity services to California local and state agencies • Will provide residential and commercial services via fiber up to • Currently participating in the ACP program with a free (after $30 multi -Gig speeds. No proposed pricing in their response. discount) 300M offering . For low-income households, participating in ACP with a free (after Operational . Altice is willing to collaborate with TDPUD regarding the ACP $30 discount) 100M offering program and broadband affordability initiatives • AT&T would provide all operational functions • AT&T and TDPUD would cooperate to enable expedited, batched permitting Technical • Altice states that currently deployed DOCSIS3.1 architecture is . Proposing 100% FTTP network architecture sufficient and provides up to 940M/35M capacity Funding • No funding details provided • No funding details provided • Altice recommends that any TDPUD broadband project should target only the "very limited" number of unserved/underserved Other households. Using BEAD or ARPA grant funding is discouraged. • Altice recommends that the project avoid unfair regulatory terms (e.g. subsidies) and that TDPUD broadband investment be separated from the electric revenue streams 1/10/2023 Study conducted by Uptown Services, LLC Recommendations / Next Steps UPTOWN SERVICES,LLC RECOMMENDATIONS /NEXT STEPS Uptown would recommend one or more of the following as next steps to the Initial Scoping Study... • There is strong demand within the District for improved broadband. A $70 price point for 1G should be targeted. • Construction will be costly with total capital of =$120M • Both fiber and wireless technology should remain under consideration, with Study Key Findings both potentially deployable under open access • The District is ineligible for many grant programs, but both LATA and CASF may provide some grant funding support • Given cost to build, alternative funding sources should be considered (e.g. LID, private philanthropy, grant funds) • Middle/Last mile system design (field -based including make ready analysis) Next Steps • Financial analysis including 20 years pro forma • Grant eligibility discussions with CPUC regarding LATA and CASF • ISP engagement as follow-up to RFI responders 1/10/2023 Study conducted by Uptown Services, LLC 115