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Progress Report: CapeNet LLCPresented to the Barnstable County Commissioners

April 8, 2015

Alan S. Davis, President & CEO, CapeNet LLC

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Network Overview

• OpenCape Network: Only 100% end-to-end 100 Gigabit fiber-optic network in the region– On a par with the best voice and data networks in the world– Designed for superior reliability: redundancy and diversity

throughout

• Locally-run, carrier-grade community asset– Operated by CapeNet under 25 year IRU with three 5 year

extensions– Not another huge corporate monopoly

• 400-mile fiber optic backbone extends throughout southeastern Massachusetts and Cape Cod, with on-net connections to Providence, Brockton and Boston.

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Network Map

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What we sell

Carrier-grade services:

• Internet Access from 10 Mbps to 10 Gbps

• Point-to-Point circuits

• Voice over IP (VoIP)

• Wavelengths

• Dark Fiber

• Cell tower Backhaul

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Current Situation

• Financially solid; cash flow break even achieved in 2014

• Retail and wholesale customer base growing rapidly

• Many customers have already come back to order more services and an increase in bandwidth

• More than 100 end users including:− Numerous reference customers such as WHOI, Otis, AT&T, CCRTA,

TMLP, Cape Cod Commission, Hyline Cruises and Hydroid− 10 High Schools and 2 colleges− CLAMS (27 libraries)− iNets in Falmouth, Mashpee, Bourne, Truro and Eastham

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Why customers are choosing fiber

• Most Cape area enterprises, municipalities and schools were forced to get their Internet access from last-century technology – coaxial cable or DSL – which can be slow and unreliable

• For the first time on Cape Cod, there is a new, truly viable choice:– Symmetrical up/down speeds– Dedicated (not shared) circuits that don’t slow down during peak

usage periods– Superior SLAs guaranteeing best performance and uptime– Competitive pricing for a superior service

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Recent CapeNet milestones

• Struck 20-year dark fiber IRU deal with AT&T, including build out of 51 laterals to cell towers on Cape Cod and 8 west of the Canal

• Reached colocation agreement to extend the OpenCape Network into Boston

• Bought out 20% minority stockholder Opticore EMA

• Added 2 full time staff and five part time time staff members engaged in technology, accounting, sales and marketing activities.

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Future Plans

• Further engage 25 solid sales prospects in the pipeline

• Pursue additional cell tower backhaul relationships with other national carriers

• Explore cell site backhaul partnerships with other BTOPs in New England, including:– Rhode Island (OSHEAN), Maine (Maine Fiber), NH (186

Communications) and Western MA (Axia NetMedia)

• Improve mobile coverage and capacity on Cape Cod through deployment of small cells

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Other Future Plans

• Debt finance new laterals when appropriate

• Build other municipal iNets

• Finalize sales in healthcare and hospitality industries

• Expand education presence, including access to more educational content

• Explore fiber-to-the-home market in selected areas

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Thank YouAlan S. Davis, CEO & President

CapeNet LLCadavis@capenet.com

508-380-0601