Private Provider RFP UPDATE February 27, 2017 1
Executive Summary Providers submitting proposals: 6 Charter – met financial threshold requirements • Proposal for six towns • Requests additional funding for 3 towns • Requires all selected towns to participate Comcast – met financial threshold requirements • Proposal for 4 towns; 3 towns non-severable; Princeton bid separately; 2 towns overlap with Charter; • Requests significant additional funding for all 4 towns • Choosing Charter over Comcast could mean two towns could be excluded Mid-Hudson – did not meet minimum financial requirements • MBI needs to understand Mid- Hudson’s strategy for selecting the one town they picked Crocker – did not meet minimum financial requirements • Proposal is for 38 towns: requires 50% take rate / cover 70% of town at $2000 per subscriber requires 75% take rate / cover 96% of town at $3000 per subscriber Fiber Connect – did not meet minimum financial requirements • Proposal to serve 8 towns; backed by private equity investor Westfield Gas & Electric • Offered to be involved as a Network Operator 2
Charter • Meets minimum threshold criteria. Reduced long-term operational risk for towns. • Tech: Hybrid Fiber-Coaxial Cable • All six towns non-severable • ~2.5 years to complete • 60m/4m for $59.99 to 100m/4m for $124.99, Triple Play available Requested Grant Funding Proposed Coverage Additional Funding Municipality MBI Construction Requested % of Total Premises Allocation Egremont $660,000 $303,276 96% of 920 Monterey $680,000 $613,150 96% of 874 New Salem $400,000 $547,239 96% of 464 Hancock $480,000 $0 96% of 682 Princeton $910,000 $0 100% of 1,325 Shutesbury $510,000 $0 96% of 845 Total $3,640,000 $1,463,665 3
Comcast • Meets minimum threshold criteria. Reduced long-term operational risk for towns. • Tech: Hybrid Fiber-Coaxial Cable • 3 towns non-severable. Princeton bid separately. • Construction schedule not specified • 10m/2m for $49.95* to 200m/20m for $87.95, Triple Play available Requested Grant Proposed Coverage Funding Additional Funding Municipality Requested % of Total Premises MBI Construction Allocation Goshen $450,000 $1,010,000 96% of 585 Montgomery $300,000 $725,000 96% of 360 Princeton $910,000 $640,000 100% of 1,344 ** Shutesbury $510,000 $1,145,000 96% of 845 Total $2,170,000 $3,520,000 *Also provides an offering of 10 Mbps/1 Mbps service for $9.95/month to families with a child eligible for National School Lunch Program. **Based on Comcast’s own data collected from a physical walk -out within the Town. 4
Mid-Hudson Data Corp. • Below minimum threshold criteria • One town – Tyringham • Tech: Fiber (91%), Fixed Wireless (6%) • 10 – 12 months to complete • 25m/5m for $89.95 to 100m/20m for $199.90*, no video Requested Grant Funding Proposed Coverage Additional Funding Municipality MBI Construction Requested % of Total Premises Allocation Tyringham $260,000 $71,500 ** 97% of 308 Total $260,000 $71,500 ** *Will offer three separate speed packages available to wireless subscribers ranging from 10mb to 24mb download. Prices for wireless packages not specified. **Estimated cost to town for building of 1.4 miles of infrastructure to link Main St. to Goose Pond via fiber optic cabling. Estimate includes installation of 30 -35 ft. utility poles, installation of anchors with downguys, and placement of 1.4 miles of strand. 5
Crocker • Below minimum threshold criteria • Tech: Fiber • Request MBI grant funding of $18.33M • 70% coverage: w/ 50% presubscription & $2K contribution per subscriber • 96% coverage: w/ 75% presubscription & $3K contribution per subscriber • Single tier internet $85/ month, no video Requested Grant Funding Proposed Coverage Additional Funding Municipalities MBI Construction Requested % of Total Premises Allocation 38 Towns 70% of 21,201 $18,330,000 $22,869,000 * 38 Towns 96% of 21,201 $18,330,000 $51,455,250 ** *Shows projected total additional funding for 38 towns if 50% presubscription threshold is reached with $2K contribution from each subscriber. **Shows projected total additional funding for 38 towns if 75% presubscription threshold is reached with $3K contribution from each subscriber. 6
Fiber Connect • Below minimum threshold criteria. New purpose LLC – Established in 2015. No financial information shared. • Backed by private equity investor in software, communications, and storage sectors. Partner at Bessemer’s Venture. • Two proposals: 2 towns (Monterey and Egremont); 6 towns (Alford, Becket, New Marlborough, Otis, Tolland, Tyringham) Requested Grant Funding Proposed Coverage Additional Funding Municipality MBI Construction Requested % of Total Premises Allocation Monterey * $680,000 $585,000 98% of 798 Egremont * $660,000 $100,000 98% of 922 Alfrod $270,000 $468,000 96% of 342 Becket $1,290,000 $3,132,000 96% of 1,823 New Marlborough $920,000 $2,384,000 96% of 1,086 Otis $1,080,000 $1,680,000 96% of 1,687 *Fiber Connect has begun Tolland $430,000 $964,000 96% of 537 Make-Ready work in Monterey Tyringham $260,000 $536,000 96% of 308 and Egremont. Total $5,590,000 $9,849,000 7
Westfield Gas & Electric • Willing to work with any unserved town under municipal ownership model • Proposed Services: - Design and engineering - Procurement - Project management - Network operation • Did not request specific funding under this procurement 8
Communications Plan Brief Governor's Office 1/19/2017 Brief Western MA Legislative Delegation 1/20/2017 Post Private Provider Submissions 1/23/2017 MBI Community Liaison and PM’s Engage Towns w/ Viable 1/23/2017 – 3/21/2017 Path to Discuss Options w/ Selectboard Member Public Open Meeting In Western MA 2/16/2017 Brief MBI Board of Directors – Town Preference & PP RFP 2/27/2017 Towns Selectboards Must Notify MBI to Opt out or Opt in to the MBI Private Providers Offering – Recommend a Friday 3/24/2017 Select board vote following a public meeting or Town meeting vote Issue Final Recommendations to MBI Board 3/28/2017 9
Map of Towns by Provider 10
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