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HomeMy WebLinkAbout5 Broadband Business Plan Agenda Item TRUCKEE DONNER Public Utility District Memorandum To: Board of Directors From: Peter Hoizmeister Date: May 11, 2001 Broadband business plan a) At the last meeting we discussed the status of the i3raodband business plan. We reported on the trip to Glasgow, Kentucky. We talked about visiting Ashland, Oregon and Alameda, California. Plans for those visits are progressing. We were asked to prepare a modified pro forma reflecting the postponement of telepony services. Attached is that revised pro forma. b) We would like to proceed to the next step. We need to secure the services of a design engineer and we need to begin to arrange financing. With hefin Bc ar s approval, we will bring to the next meeting proposals for engineering BROADBAND BUSINESS UNIT Assam Mons Launch Date of Broadband Business Unit-July 1,2002 COP Interest Rate-6 In-Llou-of-Franchise Fees to be paid to Town of Truckee,Nevada and Planer Counties @ 5%of Gross Cable television avenues Staffing Levels BBU to Provide- Cable Television,High Speed Internet,Business to Business Ethernet Connectivity BBU to be solo ISP for first year,with platform available to Local,Regional,National ISP's thereafter _ ---1 � YiB Yr10 5ta(M lu include;BBU Manager,2 Customer Service Re s,2 Technicians t2 iclans Yr.3 Yr4 YS Yr6 Yr7 L_-� ___--- 9 Yr.1 10,359 10,670 10,990 1 320 11,659 12,009 12 369 9,480 9,764 10,057 450% 50.0% 50.0 Homes passed 30.0% 38.0% 38.0% 40 0% 40.0% 45 0% 6pOq 6,185 35.0% 3,936 4,26B 4.396 5,094 5,247 Cable Penetration 659 2,929 3,822 698 153 758 180 Cable Subs 1 1,270 892 115 331 ` 12tl 3795 3195 37,95 3795 increase 70 70 Basic Rev/Monthly Cost 29.95 29.95 29.95 3655 3655 365 70 70 60 60 50.0°!° 55 0% 60.0% No.of Channels offered 60 2,623 3302 3.711 Digital Tier Penetration 100% 2586 2955 10181 1y494 10758 2 292 1i31 1160 1t.89 1218 Digital Tier Subs 166 10 25 10 51 10 77 11,04 25 0% 10.00 22,6% '2 2% 238% 24.4% i,545 Digital Tier Rov./MunIhlY Coat 10.00 20-5% 21.0% 215% 22.1% 1,181 1,247 1,463 Premium Penetration 20.0% 803 848 942 995 12.18 12.49 Premiwn Subs 332 601 11 04 11 3t 1t 6D 11 89 10.77 1,10 1,13 1.75 1.17 Premium V Buy Par Cost moo 11,00.25 11.02 1.04 1,06 108 3 42 351 3,59 PPV Buys Per Month 1.95 3A0 3.18 3,26 3.34 2 95 3.02 10 00 10 00 1000 PPV Rev./Cost Per Movie 2.95 1000 10.00 2495 24 95 2495 24.95 Cable TV Equipment Rental Charge 10 00 10.00 24 95 24,10.00 95 2495 24 95 24 95 059 062 0.49 051 0.54 0.56 Cable Installation Charge 24.95 20.42 0.44 0,46 350% 40 0% 400% Billing 0,40 30.0% 35.0% 3b.0% ISP Penetration 10.0% 20.0% 25.0% 300% 4081 4804 4948 ISP Subs;TDPUD 474 3108 3201 3846 3962 ISP Subs;Platform p 1953 2514 15.00 15 00 150p 15 00 15 00 000 ISP Rev. 2495 10.00 15.00 1000 1015.00 �00 10.00 1216 1221p W00 1 1000 1200 212 63 8,6 229 ISP Equipment Rental Charge 10.00 196 200 204 208 585% 59g°� Total Buildings Passed-Ethernet 192 51.0% 52.0% 53.1% 54.1% 55 2% 512% 5127 132 137 112 H7 122 127 Building Penetration-Ethernet 500% too 104 108 84.4% Stl6% 931 28 No.of Buildings Entered-Ethernet 96 630% 66.2% 69.5% 729% 76 6% tl 987 107 11'7 0 Demand Per Building-Ethernet 60.0% 69 75 82 90 29 63 55000 55000 550 00 550 00 Ethernet Subs 550,00 550,00 36 00 3600 3600 3600 550.00 550 W 550.00 36 00 0 Ethernet g Revenue Cost 55.00 36.00 36.00 36 00 36,00 0 0 0 p Advertising Revenue!Sub 36.00 0 0 0 0 0 p _-, 0 „- Telephony Subs 0 0 p 0 0 0 Tale hon Rev. 0 0 e ears of Operation During 1st four years of operation facility rent and OM$alary%waivd. polo Wake Ready oosfls�o be distrlbu ed be all Finacing ConnectionBroadband anld Elelctr ct1Busiei Business Unit,11a130%-70%splilmg 6rsi two y ($1 miiliorQ estimated l0 6e$ it,7o0p0 Cost Of prefect, Connection lo'"NWW'to begin as"T-1",to"T-3" to fiber to POP 000 annually. SCADA Services saving to Electric and Water Business, Unlls=$t22, Draft Profonna 4-May 2001 As Program Year 20021 20031 20041 20051 2006 2007 ___jLa_____2009L 20101 2011 Revenue SCADA(savings to Electric&Water Units) 122,000.00 122,000.00 122,000.00 122,000.00 122,000.00 122,00it 00 122 000.00 I22,000.00 122 000.00 122,00000 ISP;TDPUD Operated 141,915,60 ISP;Platform(open access) 0.00 351,518.40 452,579,94 559,388 81 576,170.47 692,364,85 713,135,79 734,529,87 864,646.59 890,585.98 Cable Television;Basic 596,244,60 1,052,797,61 1,373,549.95 1,603,705,55 1,738,754,44 1.790,917,07 2,319,728,86 2,389,320,73 2,734444.83 2816 478.18 Cable Television;Digital 19,90800 7030388 117,519,92 148,88699 193,035.91 232.911.62 311,212,68 365,069.77 471071,83 542,54627 Cable Television;Premium 39,816.00 73,862.80 101,244.88 109,561.52 124,801 38 135,053,03 164,415.15 177,920,82 213,928.79 231,501,70 Cable Television;PPV 5,872.86 20,739.59 35,361.75 45,695.79 60,431.12 74,372,75 101,363.16 121,282.72 159,628 47 187,525,43 Business Ethernet 190,080.00 415,294.39 453,675.89 495,604.62 541,408.40 591,445,36 646,10634 705819.93 771051.81 842,312.42 Telephony 0 0 0 0 0 0 0 0 0 0 Equipment Rental;Cable Television 19,908.00 70,303.68 114,653.58 141,711.83 179,253,04 211,006,43 27506688 314,798,51 396296.35 445,292,99 Equipment Rental;ISP 56,880,00 0.00 0.00 0,00 000 0.00 dud 0,00 0,00 000 Cable Installation 41,392.05 31694.48 22,26703 2,860.81 8,270.67 3,194,55 17411,60 3,812,73 18,90831 4,494.36 Advedisin 59,724.00 105,455.52 137,584.30 141,711,83 153,645.46 158.254,82 183377.78 186879.11 216.16165 222,646.50 In-Lieu-of-Franchise Fees 33092.07 60,885.18 81,383.82 95392A4 105.851.14 111,662.72 144,835.99 152,679.70 178,953.70 188,90256 Gross Revenue 1,293,741.11 2,313,970.15 2,930,437,25 3,371,126,55 3,697,770,89 4,011,520.49 4,853,818.43 5,123,434,18 5,968,138.62 6,305,383.83 Less,Bad Debt and Collections 12,93Z41 23,139,70 29,304.37 33,711.27 36,977.71 40,115.20 48 538.18 51,234,34 59 681.39 53,05384 Total Revenue 1,280,803.70 2,290,830.45 2 901,132.88 3,337,415.28 3,660,793.18 3.971,405,28 4 805,280.25 5,072,199.84 5 908,457.24 6242,329.9, Expenditures Pro rammin ;Basic 238,49Z84 421,119.04 549,419.98 641,482.22 695,501.78 716366.83 927891,54 955,728.29 1093,777.93 1,126591.27 Programming;Premium 21,898.80 40,624.54 55,684.69 60,258.84 68,640.76 74,279,17 90,428,33 97856A5 117,660,83 127,325.93 Programming;PPV 3,876,09 13,688.13 23,338.75 30,159.22 39,884,54 49,08602 66899,69 80,046.59 105,354.79 123,766.78 in-Lieu-of-Franchise Fees 33,092 07 60,885.18 81,383.82 95,392.44 105,851.14 111,662,72 144 83599 152 679.70 178,953.70 188902.58 Sales and Mmketin 100.000,00 35,000.00 35,000.00 35,000.00 35,000,00 35,000 00 35,000.00 35 000.00 35,00000 35,000 00 Access to W W W 30,000.00 120,000,00 120,000.00 120,000.00 120,000.00 120,000,00 120 000,00 120,000,00 120,000.00 120,00000 Operations Facility Real 0.00 0.00 0.00 000 382,500.00 382,50000 382,50000 382500.00 382,50000 382$00.00 Transportation Overread 42054.27 86,631.80 89,230.75 91,907.68 94,664,91 97,504.85 100,430,00 103442,90 106,546.19 109,742.57 Administrative Overhead 2,913.01 6,000.80 6,180.82 6,366.25 7080.68 7,816,55 8,574A9 9,355,17 10,159.27 10987,50 Plant Maintenance 20,000.00 20,000.00 20,00000 20,00000 20,000.00 20,00000 20000.00 2000000 2000000 20,00000 Plant Maintenance Personnel 132,080.00 272084.80 280,247,34 288.654.76 297,314,41 306.233,84 315,420 85 324883.48 334,629.98 344 668.88 Utilities(electric,water,telco) 9 000.00 18,000 00 18,000.00 18,000 00 18,000,00 18,000.00 18,000 00 18.00000 18000.00 18000 00 Expensed Installation Costs 124,425.00 95,274.00 66,934.96 8,599.02 24,861,72 9,602.84 52 339,49 11,461,11 56 838.62 13,510 10 General&Administration Management and Stall 57,076.50 117,577.59 121,104.92 124,73807 162,470.21 201,33431 241,36434 282595.27 325,063.13 368,80503 Employee Benefits(All) 127,831.96 263 333.84 271,233,86 279,370.87 310,722,44 343,014,56 376,275,44 410 534,14 445 820,61 482,165 67 Subscriber Billing 7.963,20 14,763.77 20,22489 21,873,22 24,900,94 26.930,36 32,76583 35,436.25 42,58256 46,05304 Other Operating Expenses 950,708.75 1,584,983.50 1,757,984.80 1,841802.59 2,407,393.53 2$19,33206 2,932,72600 303951937 3392887.62 3,518019.36 O erating Income 330,09495 705846.94 1,143,148.08 1,495,612.69 1,253399.65 1,452,073.23 1,872,554.25 2,032680.47 2515,56262 2,7243W.63 Principle&Interest 1,020,000.00 1,020,000.00 1,020,000.00 1,020 000,00 1,020,00000 1,020,000,00 1,020000.00 1,020,000 00 1,020 000 00 1020 000.00 '.. Technology Reserve Fund 500,000.00 500 000 00 500 000 00 500,000.00 Total Expenses 1 970,708.75 2 604,983.50 2,777,984.80 2 861,802.59 3,427,39353 3,539,332 O6 3,952 726 00 4,059,519.37 4,412 887 62 4538019.36 Net Income -689,one nq -314,153,06 123,14808 4 5,612.69 233,399 65 432,073.23 352 554.25 512,680.47 995569.62 1,204310.63 Drag Pmfonna 4-May 2001 xls