ISLAND WIDE BROADBAND NETWORK JULY 1 ST TOWN COUNCIL MEETING PREPARATION FOR A VOTE ON JULY 27, 2020 AT FINANCIAL TOWN MEETING
ISLAND WIDE BROADBAND NETWORK Fiber to the Premise (FTTP/FTTH) broadband network Fiber connections to all residences and businesses that run with the other utility services (underground or aerial) Indoor network termination equipment with power protection for all subscribers Network electronics and software supporting network operations, performance monitoring and high-quality support and troubleshooting for subscriber issues Multiple data service options, from 25Mbps to 1Gbps symmetric (best efforts or guaranteed) Optional telephone services for residents and businesses, with E991 and provision for on-island phone service in the event of connectivity loss to the mainland More robust services such as static IP addresses or distributed services (e.g., hotels) also available FCC Lifeline Program support for low-income consumers WHAT WILL THE NETWORK PROVIDE? BI Broadband Vote July 27th
ISLAND WIDE BROADBAND NETWORK Shovel ready, with RFP responses in hand and a vendor team of Sertex and Crocker identified Sertex, formed in 1999, has in recent years focused on building broadband networks serving municipalities. They are on the leading edge of telecommunications technology and committed to positive customer outcomes; Sertex successfully constructed the Town’s CAI Broadband Network Crocker Communications, a family owned/operated telecommunications company founded in 1956, has been providing broadband (internet/telephone) services since 1994 and been part of several municipal network implementations; Crocker has a strong commitment to superior customer service and was the preferred vendor identified in the Town’s first RFQ process The network will be owned by the Town, operated and maintained by Sertex and Crocker Communications, overseen by the Town through the Town Council and Broadband Committee and accounted for as an enterprise fund of the Town (like water and sewer) Capital equipment replacement program built into the economics to ensure ongoing network support and infrastructure maintenance Awaiting the funding authorization to move forward WHERE ARE WE IN THE PROCESS? BI Broadband Vote July 27th
ISLAND WIDE BROADBAND NETWORK Monthly Costs for a Representative Taxpayer and/or Subscriber $200 $ 183 $180 Potential RDOF subsidy up to $9 monthly $160 DirecTV $140 $92 $120 $ 105 $100 Telephone $20 Telephone $80 $18 Broadband Paid to Crocker $30 $60 Network O&M DSL $40 Paid to $32 $73 TNS with $20 Tax $23 Tax $23 property tax bill $0 Verizon DSL & Local Phone, DirecTV Town Broadband Internet & Voice Subscriber & Taxpayer only, No Service Taxpayer Tax based on $1m property value, 50/50Mbps broadband internet with two year contract. WHAT WILL IT COST ME AS A TAXPAYER AND/OR CUSTOMER? BI Broadband Vote July 27th
ISLAND WIDE BROADBAND NETWORK 2021 Jul Sep Nov 2021 Mar May Jul Today Aug 3 Engineering & Pole Licensing Oct 26 Make Ready Aug 5 Fiber Optic Material Procurement Feb 4 Underground Backbone Oct 1 Nov 25 Aerial Backbone Construction Jan 4 May 21 Underground Drop Construction Sep 1 Dec 25 Customer Service Installation Apr 1 Jun 23 Electronics Procurement Dec 1 Jan 25 Mar 1 Headend Installation Jul 2 Rural Digital Opportunity Fund Auction 904 Jul 1 Jul 15 Oct 29 Short-Form Application Bidding Begins WHAT IS THE PROJECT TIMELINE? BI Broadband Vote July 27th
ISLAND WIDE BROADBAND NETWORK Authorize borrowing of up to $8.0m comprised of Up to $7.025m non-recurring costs for construction & implementation Fiber backbone and laterals, drops to each premise on Block Island Mainland connections, core equipment & transport electronics Construction administration, pole licensing & network deployment Up to $600k of installation costs for network equipment at each subscribed premise, recovered through subscribers Up to $375k of first year operating costs recovered through subscribers Initial installation, transport & administration These figures allow for 100% participation (1700 drops and 1700 customers); actual take rates will determine final costs There is no minimum take rate for the system to operate; subscription costs are fixed whether take rate is 60% or 90% The Town may decide that the time is right to pursue the project in its entirety, or authorize moving forward only if successful in the RDOF auction or subject to other outside assistance WHAT IS THE TOWN ASKING FOR AT FTM? BI Broadband Vote July 27th
ISLAND WIDE BROADBAND NETWORK Rural Digital Opportunity Fund (RDOF) is an FCC program providing up to $20.4b over 10 years for broadband and voice services The winning bidder in each census block group will receive support annually for a total of 10 years Based on prior FCC auction experience, the winning bid could be in the neighborhood of 70% of the reserve price or $273k annually for Block Island The Auction is scheduled for October 2020 The financial and performance commitments involved for Sertex and Crocker to bid on Block Island require that the Town commit to the project in advance of the Auction, hence the accelerated schedule Final reserve prices will be set just prior to the Auction; the Town is lobbying the FCC aggressively to ensure that all eligible sites are included in the final reserve price Success in the RDOF auction will necessitate a 10 year contract with Sertex and Crocker, a longer commitment than was initially preferred, but had been included in the RFP WHAT IS THE RDOF AUCTION? BI Broadband Vote July 27th
ISLAND WIDE BROADBAND NETWORK Public Information Sessions (dates tba) New Shoreham Broadband Committee – Thursdays via Zoom Email: broadband@new-shoreham.com Island Wide Broadband FAQs (to be released shortly) Facebook: Broadband Block Island http://new-shoreham.com/displayboards.cfm?id=41 Financial Town Meeting: Monday, July 27, 2020 7pm HOW CAN I FIND MORE INFORMATION? BI Broadband Vote July 27th
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