James Andrusiw (jandrusiw@coquitlam.ca)

April, 2014

Our business is your future!

Coquitlam, British Columbia

Coquitlam Optical Network Corporation - QNet

• Local government corporation incorporated Nov. 12, 2008 as per a 30 year business plan approved by Council in March, 2008

• Wholly owned by the City of Coquitlam with independent board of six directors

• Startup financing: $5.1 million loan from City, long term investment (20 year payback) and future source of non-tax revenue

• Primary services – lease dark fibre optic cables and data centre space primarily to competitive telecom companies

Key Milestones

• 1980s – 2003: Approx. 45kms of underground ducts installed by Engineering for traffic signal network

• 2003 – 2004: 45kms of fibre deployed to support Voice-over-IP telephone system ($750k cost paid for with telecom savings of $302k/year)

• March 2008: Council approves QNet business plan, QNet incorporated in Nov/08

• 2009: City RFP for Internet and telephone services brings in Bell and Allstream (in addition to TELUS) as upstream service providers for QNet

• 2010: First ISP begins selling competitive Internet and telephone residential and business services

Coquitlam’s New Transportation Utility

Connection

Transport

Application/Service

Connection

QNet Business Model

Service

Providers

Co-location,

Upstream &

Local

Access

Malls /

Businesses

Schools / Offices

Wireless Services

Multi-dwelling

Units (MDU)

Core Network

Internal Collaboration

• 1.5 FTEs

• Rely on collaboration with other City

departments

– Council (QNet Shareholder)

– Senior Management (QNet Board)

– Engineering (Telecom Coordination)

– Corporate Communications (Marketing)

– Finance (AP, AR, Procurement)

– ICT (Telecom infrastructure)

QNet Benefits Through Collaboration

• Improve telecom services and costs for the City and community partners:

– Hard dollar operating savings of $357,000 per year (over $3 million in savings to date)

– Two state-of-the-art data centre / co-location facilities with green cooling technology (i.e. thermal energy source)

– Internet connection speed increased by over 1000% with redundant links

– SD43 in the process of connecting 70 schools

– Two other municipalities connect via QNet

QNet Benefits Through Collaboration

• TELUS

• Shaw

• Bell

• Allstream

• Urban

• Novus

• AEBC Internet

• Uniserve

• Wireless Space: Rogers Mobility, Terago

and Shaw WiFi (in progress)

• Eight telecom/Internet service providers

operating in Coquitlam:

QNet Benefits Through Collaboration

• 45 business and residential complexes

connected to the network

• Residential telecom packages:

– Internet 25 Mbps download and 10 Mbps

upload = $24.95 / month (residential gigabit

now avail.)

– Digital Phone (12 calling features) = $10.95 /

month

– Basic Digital TV 80+ channels = $25.95 / month

– Triple play bundle = $60 / month

– Over 60 HD channels

– Multicultural (e.g. Chinese/Japanese) channels

Regional Internet Exchange

VANIX

To Seattle

QNet

Metro Vancouver Intelligent Community

Network Task Force (MVICNTF)

• Formed in 2012 to collaborate on the

development of a regional fibre network

from Whistler to Hope connecting munis,

hospitals, school districts, etc.

• Members include all owners of fibre assets

including telecom companies, government

and crown corporations

• Currently building a GIS data base of

current and future state network (ICIS)

Rising Tide Raises All Boats

To inquire further about QNet:

Rick Adams

Manager, ICT & QNet GM

radams@coquitlam.ca

Our business is your future! www.qnetbc.net