Alameda Power & TelecomAn Enterprise of the City of Alameda

DESIGNING

THE LAST MILE

2

Who We Are• Municipal Enterprise - City Department

– Serving citizens since 1887

• Telecom utility established in 1998– City Charter revision Nov 1998 – Granted Franchise November 1999

• Construction Jan 2001• First customer June 2001

– Currently 12,500 customers

• Public Utilities Board oversight

3

Business Plan Summary

• Turnkey partner (void)• Own and operate network • Provide TV and data (Internet) services• Built to provide system flexibility• Hybrid fiber-coaxial system• Priced below competition

– Administrative efficiencies with electric utility– Marketing advantage – local ownership; No stockholders– Newer plant means lower maintenance costs

Satellite 22,500 Miles

Satellite dishComm. Tower

Node

Off Air

Headend

Cable

Cable

Drop

Customer

DCT

computer

Modem

Choosing aProficient Consultant

• “Experience, experience, experience”• “Early, early, early”• Black & Veatch• Retain legal counsel with telecom expertise to

negotiate contracts• Incorporate flexible terms in contracts to

respond to changing competitive environment• Use contractors with prior telecom experience• Include performance incentives and penalties

6

Cable Access TVInternet Service

Plant Characteristics• 860 MHz

– Competitor’s is 750 MHz– Two-way plant

• Fiber to the node

– Redundancy– Reduced maintenance costs– Fiber to the curb

• Coaxial cable to the user• 500 users per node

– Ability to “split” to 250 with higher penetrations– Competitor’s usually at 750 or more users per node

• Wi-Fi or Broadband over Power Line options – Under review for commercial areas

7

Construction of CATV/Internet Service Plant

• System completed – 85%– 38 miles underground– 84 miles aerial

• Node Status:– 64 nodes certified– 11 nodes to be built (including partially complete

nodes)

8

Construction of Plant (cont)

• Plant Under Construction - Team Fishel– Team Fishel – 68 yrs as telephone and pipeline

builder; 25 years in cable/telecommunications construction

– Subcontractor Baillie Communications – 15 yrs in cable telecommunications construction

• October 20, 2003 start date – Construction Completion scheduled for June 2005

9

System Independence

• Post-construction network sweep and balance, and node certification

• Compliance with FCC rules, regulations, and reporting requirements

• New customer installations, traffic coordination, and equipment control

• Maintenance of and upgrades to the entire plant including the headend and network

• Interface with Internet Service Provider• Coordination with Marketing for customer acquisition• Coordination with Customer Service