Broadband Best Practices SummitTechnet: San Jose, California
June 29, 2007
Tad Deriso, General [email protected] (804) 855-4057
Virginia’s Broadband Future
Virginia’s Broadband Future
MBC Overview
Idea formed in 2000 by local business leaders, Old Dominion Electric Cooperative and Virginia Tech Lack of advanced/affordable telecom
infrastructure Desire for Private Sector to be key players in the
project Transform the regional economy by creating a
unique technology advantage
Problem to Solve?
T-1T-1
Dial-up ISDN DSL Cable Wireless 54k 128k 768k 1.5MB 2.0MB
T-1 T-3 OC-3 OC-12 OC-48 OC-1921.5mb 45mb 155mb 622mb 2.5gb 10gb
Ethernet Services: 10MB…..10GB
Residential/Small Business Carriers / Enterprise / Large Users
MBC Business Model
Focus on the “Dumb” Pipe Don’t select last-mile winner/losers Private Sector participation Flat-Rate Wholesale Pricing Model Level the playing field for broadband services Metro Ethernet, TDM, Wavelength Services Willing to provide Dark Fiber
MBC Industrial Park AccessAirpark 460Airpark 460
MBC Today
Over $40 million in grant funding Regional network operational 4th Qtr-’06 MBC offers wholesale services to
Members (Telecom Service Providers) Efficient staffing & resources to operate
carrier-class network FY07 revenues: $1M, FY08 proj: $1.4M
MBC Competitive Advantage
Only rural region in the US with owned fiber and transport to Tier1 Data Locations
200Gbps System - Infinera Currently 36 Gigabits
provisioned on MBC long-haul network
Price Point Comparisons…
Solving the Backhaul Challenge
Improving Contention Ratios for ISP’s
Cost effective access for larger telecom service providers
Transport & Internet Pricing Level Set
TRANSPORT COST INTERNET PORT COST
Circuit Type Before MBC
After MBC
Before MBC
After MBC
DS1 $500 $250 $800 $300
DS3 $5,000 $1,500 $6,000 $3,000
10Mbps Ethernet
N/A $400 N/A $1,000
50Mbps Ethernet
N/A $1,000 N/A $1,500
100Mbps Ethernet and Above
N/A $1,500 N/A $2,000
Equinix to SAIC Building
Equinix to Northrup Grumman
50Mbps $2,420100Mbps $3,380200Mbps $5,8201GigE $8,280
50Mbps $2,564100Mbps $3,264200Mbps $5,5601GigE $7,650
Richmond POP to Data Center
50Mbps n/a100Mbps $3,477200Mbps $5,9051GigE $15,169
Equinix to Danville - IALR
50Mbps $2,025100Mbps $2,700200Mbps $4,1001GigE $6,300
Monthly Metro Pricing
Northern Virginia 50Mbps 100Mbps 200Mbps 1GigE
Equinix – SAIC (Herndon) $2,420 $3,380 $5,820 $8,280
Equinix – NGC (Reston) $2,564 $3,264 $5,560 $7,650
Richmond, Virginia 50Mbps 100Mbps 200Mbps 1GigE
Level(3) POP to Innsbrook n/a $3,477 $5,905 $15,169
Southside Virginia 50Mbps 100Mbps 200Mbps 1GigE
Equinix – IALR Danville $2,025 $2,700 $4,100 $6,300
(average price variance) (19%) (18%) (29%) (39%)
The Balanced Scorecard
FinancialFinancial
CustomerCustomer Internal ProcessesInternal Processes
Jobs in CommunitiesJobs in Communities
Vision and
Strategy
OBJ MEASURE TARGETS INIT.
OBJ MEASURE TARGETS INIT. OBJ MEASURE TARGETS INIT.
OBJ MEASURE TARGETS INIT.
The Most Important Sign that The Most Important Sign that Rural Virginia is Open for Rural Virginia is Open for
Business and has Embraced the Business and has Embraced the Technology Age…Technology Age…