Most Recent Item UTI-Tri-Cities Presentation

Most Recent Item UTI-Tri-Cities Presentation

Tri-Cities
Broadband Initiative
November 13, 2002
J. Allen Davis
United Telesystems, Inc.
1 Greatcoat Lane
Savannah, GA 31411
Phone: 912-598-7223
Fax: 912-598-9444
e-mail: [email protected]
11/13/02
United Telesystems, Inc.
1
United Telesystems, Inc.
• Broadband System Development
• Competitive Broadband Projects
– Hybrid Fiber/Coax (“HFC”)
– Fiber-to-the-Customer (“FTTC”)
• Current Client Base
–
–
–
–
11/13/02
LECS & CLECS
Municipals
Electric Utilities
Startups
United Telesystems, Inc.
2
UNITED TELESYSTEMS, INC.
MUNICIPAL CLIENTS
Service Provider
Bolivar Electric Department
Status
Service Provider
Project On Hold
Status
City of Acworth CableNet
System Launched February 2001
City of Vidalia, GA
Clay County, FL
Business Plan Completed
City of Andalusia, AL
City of Barnesville, GA
Business Plan Completed
Coldwater Board of Public Utilities
Operating System
Fiber Agreement Negotiated with Charter
Columbia Power & Water System
System Under Construction
City of Baxley, GA
Business Plan Completed
Covington Cable
Operating System
City of Cairo, GA
Under Construction
Covington Elecric System
System Launch March 2002
City of Camilla, GA
Under Construction
Covington Electric Cooperative
Business Plan Under Review
City of Commerce, GA
Business Plan Completed
Electric Power Board of Chattanooga
Business Plan Under Review
City of Elba, AL
Business Plan Completed
Fairburn Utilities
Bond Issue Closed May 2001
City of Elberton, GA
City of Fitzgerald, GA
System Under Construction
Fayetteville Electric System
System Launched March 2001
Business Plan Completed
City of Flagler Beach, FL
Strategic Plan Completed
Forsyth CableNet
Gainesville Regional Utilities
Business Plan Completed
Business Plan Completed
Operating System
City of Floresville, AL
Strategic Plan Completed
Hopkinsville Electric System
Business Plan in Progress
City of Hartford, AL
Franchise Assessment Completed
Jackson Energy Authority
Business Plan Completed
City of Healdton, OK
Business Plan Under Consideration
Business Plan Completed
City of Jacksonville, AR
Business Plan Completed
Lawrenceburg Power System
Murfreesboro Electric Department
Survey & Strategic Planning Completed
City of Little Rock, AR
Business Plan Completed
Nashville Electric Service
Strategic Planning Completed
City of Maumelle, AR
City of Monroe, GA
Business Plan Completed
Newnan Utilties
System Launch 1996
Business Plan Completed
Opp Cablevision
Operating System
City of Monticello, GA
Business Plan Completed
Poplar Bluff Municipal Utilities
System Launched 2001/Acquisition Pending
City of Moultrie, GA
System Launch 2001
City of North Little Rock, AR
Business Plan Completed
Princeton Electric Plant Board
Pulaski Electric System
Comptroller Filing in Progress
Ripley Power & Light
Business Plan Completed
Business Plan in Progress
City of Paragould Water & Light, AR Business Plan Completed
City of Slocomb, AL
Franchise Assessment Completed
Board Approval Pending
City of Sylvester, GA
City of Thomaston, GA
HE Arrangement Pending
Scottsboro Electric Power Board
Springfield Electric Department
Business Plan Completed
Stevenson Utilities
Business Plan Completed
City of Thomasville
System Launched 1999
Swainsboro Development Authority
Business Plan Completed
City of Tifton CityNet
System Launched 1999
Tullahoma Utilities Board
State & Local Approval Obtained
11/13/02
United Telesystems, Inc.
System Launched 1998
3
United Telesystems, Inc.
Municipal Broadband Project Financings
Franchise Area
Plant
Miles
Homes
Passed
Financing
Through 10/02
Acworth, Georgia
Cairo, Georgia
Camilla, Georgia
Columbia, Tennessee
Covington, Georgia
Covington, Tennessee
Fairburn, Georgia (Union City)
Fayetteville, Tennessee
Forsyth, Georgia
Hopkinsville, Kentucky
Jackson, Tennessee
Moultrie, Georgia
Poplar Bluff, Missouri
Scottsboro, Alabama
Tifton, Georgia
Total
130
113
58
253
379
91
102
237
94
291
678
160
177
179
201
3,143
6,036
4,260
2,407
16,268
15,900
4,518
5,749
6,794
2,530
14,664
31,239
7,358
10,065
6,172
10,061
144,021
$12,200,000
$6,600,000
$3,600,000
$15,000,000
$2,640,000
$5,720,000
$3,340,000
$11,560,000
$5,400,000
$26,850,000
$62,000,000
$9,250,000
$16,520,000
$9,500,000
$7,900,000
$198,080,000
11/13/02
United Telesystems, Inc.
Phases
Status
Phases I & II
Phase I
Phase I
Phase I
Phase I
Phase I
Phase I
Phase I & II
Phase I
Phase I
Phase I
Phase I
Phases I & II
Phases I & II
Phase I
February 2001 Launch
September 2001 Launch
December 2001 Launch
Bond Issue Closed 3/02
Operating System
February 2002 Launch
Operating System
March 2001 Launch
Operating System
City Council Vote Pending
Bond Issue to Close 8/02
November 2001 Launch
August 2001 Launch
Operating System
Operating System
4
Community Objectives
ƒ
ƒ
ƒ
ƒ
ƒ
ƒ
Improve Local Infrastructure
Enhance Educational Opportunities
Promote Industrial/Commercial Growth
Improve Utility Operating Efficiencies
Diversify Revenues
Local Reinvestment of Service Revenues
11/13/02
United Telesystems, Inc.
5
Community Network Service Objectives
ƒ Enhanced Available Service Offerings
ƒ Video Services
ƒ Analog
ƒ Digital
ƒ Interactive Services
ƒ High-Speed Data and Internet Access
ƒ Telephone Services
ƒ Utility Automation
11/13/02
United Telesystems, Inc.
6
Market Environment
Players
•
•
•
•
•
•
•
•
•
Cable TV Companies
Telephone Companies
Interexchange Carriers
Wireless Providers
Competitive Access
Providers
PCS Operators
Value Added Resellers
Internet Access
Providers
High Speed Data
Providers
11/13/02
Content
Consumer
Transport
Phone
Movies
Business/
Professional
Wireline
Books
Cellular/PCS
Information
Services
Campus/
University
Home/Consumer
MultiTenant
Residential
Appliance
Health
Care
Broadcast
Set
Top
Cable
Music
Home
Shopping
United Telesystems, Inc.
MultiMedia
Game
Player
Wireless
7
FTTC Network Infrastructure
ƒ Fiber-to-the-Customer Network
ƒ Unlimited Capacity
ƒ Two-Way Capability
ƒ 1 Home Nodes
ƒ Wide Area/Local Area Telecom Network
ƒ Commercial Telecommunications Platform
ƒ Expanded Service Area Opportunities
11/13/02
United Telesystems, Inc.
8
FIBER-TO-THE-CUSTO M ER AR C HITECTURE
HE A DE N D
Fiber Drop
Fiber Feeder
FIBER OPTIC DISTRIBUTIO N
Fiber Feeder
Fiber Feeder
Fiber Drop
11/13/02
United Telesystems, Inc.
9
11/13/02
United Telesystems, Inc.
10
FTTC vs. HFC
• Initial Capital Investment
– Upgrade/Rebuilds
– Green Field
•
•
•
•
•
•
Future Rebuild/Upgrade Costs
Service Provisioning
Bandwidth and Provisioning New Services
Technical Support
System Operations
Marketing and Customer Perception
11/13/02
United Telesystems, Inc.
11
Earth Station
Antennas
System Manager
Tape Deck
ISP
TYPICAL HEADEND
OPERATION
DEMOD
VIDEO AND AUDIO PATCH SWITCH
MOD
MOD
MOD
STEREO
ENCODER
MOD
Return
Receiver
ATX
TRANS 1
TRANS 2
COMBINER
United Telesystems, Inc.
TRANS 3
W
11/13/02
RETURN FIBER
FROM NODES
12
FTTC Network Equipment
Operation
Support
HEADEND
Class 5
LDS
Telephony
Host
Server
Complex
Data
Gateway
Digital
Video
Fiber
System
Meter
Reading
PON/LMC
Telephony
NID/
HUDP
TV
Data/
Modem
Fiber
Analog
Video
Network Elements
All Fiber Broadband
Infrastructure
Subscriber Access
New services can be added incrementally given
suitable Network infrastructure.
11/13/02
United Telesystems, Inc.
13
FTTC High Speed Data Service
Operation/
Customer
Service Support
Fiber
Tap
HEADEND
FTTH
Network
Equipment
Fiber
System
Optical
Network
Unit
ON
RF
Amplifiers
Ethernet
Card
T-1s
Data Network Elements
All Fiber
Infrastructure
Subscriber Access
1. Broadband network provides connectivity from the customer premise to headend.
2. Telco provides T-1 lines from the headend to the Internet.
3. The data equipment is imbedded in the network architecture
4. City/Vendor provides customer service and network operations support.
5. Contractor provides service installation and on-site tech support.
11/13/02
United Telesystems, Inc.
14
The Tri-Cities Business Plans
• Service Area Assessment
– Residential
– Commercial
•
•
•
•
•
•
Market and Industry Analysis
Federal and State Legal Review
Incumbent Service Providers Assessment
Proposed Infrastructure & Deployment Plan
Partnering Assumptions
Capital and Operating Budget
11/13/02
United Telesystems, Inc.
15
Tri-Cities Consolidated Plan
Tri-Cities, Ilinois FTTH/FTTB Broadband Financial Projections - Base Case 2002
Project Summary
Service Area Summary
Aerial Plant Miles:
Underground Plant Miles:
Total Plant Miles:
Total Potential Residential Customers Passed:
Total Potential Commercial Customers Passed:
Total Potential Customers Passed:
Total Potential Customers Per Plant Mile:
Percentage
180
39.5%
276
60.5%
456
29,337
86.6%
4,541
13.4%
33,878
74.30
Projected Customers
Video Services - Residential
High Speed Data - Residential
Telepone Service - Resdidential
Video Services - FCC Equivalent Commercial Units
High Speed Data - Commercial
Telephone Service - Commercial
Total Customer Service Units:
10,561
3,639
2,369
47
795
550
17,960
Total Project Capital Budget:
Total Project Capital Per Plant Mile:
Total Project Capital Per Customer Service Unit:
Total Project Capital Per Potential Customer Passed:
11/13/02
United Telesystems, Inc.
36.0%
12.4%
8.1%
1.0%
17.5%
12.1%
$56,944,394
$124,887
$3,171
$1,681
16
Tri-Cities Fiber Network
Batavia, Geneva & St. Charles, Illinois
Analog Channel Lineup
Channel
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
11/13/02
Service
WBBM (2) CBS Chicago
WFLD (32) FOX Chicago
The Weather Channel
WMAQ (5) NBC Chicago
WCIU (26) IND Chicago
WLS (7) ABC Chicago
WPWR (50) UPN Chicago
WGN (9) WB Chicago
Local Community Channel
WTTW (11) PBS Chicago
WCPX (38) PAX Chicago
WJYS (62) Christian Chicago
HBO
HBO 2
HBO Family
WGBO (66) UNIVISION Chicago
TBS
WSNS (44) TELEMUNDO Chicago
WYCC (20) PBS Chciago
Educational/Govt. Access Ch
TV Guide Channel
Headline News
QVC
HSN
Fox News
CNN
MSNBC
CNBC
The Disney Channel
USA Network
The National Network
fX
The History Channel
The Discovery Channel
Animal Planet
TV Land
Nickelodeon
Cartoon Network
American Movie Classics
A&E
TNT
Channel
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
Service
ABC Family Channel
Lifetime
Women's Entertainment
Oxygen
HGTV
The Learning Channel
DIY Network
ESPN
ESPN 2
ESPN Classic Sports
The Golf Channel
Outdoor Life Channel
Speed Channel
Fox Sports Midwest
Outdoor Channel
Inspirational Network
TBN
EWTN
CMTV
Great American Country
VH-1
BET
MTV
Comedy Channel
Court TV
C-Span
C-Span 2
Tech TV
Sci- Fi Channel
National Geographic
Discovery Health Network
Food Network
Travel Channel
Bravo
Fine Living
E! Television
Game Show Network
United Telesystems, Inc.
17
TRI-CITIES FIBER NETWORK
Digital Video Services
Service
11/13/02
Service
Service
Digital Basic Tier Services
Digital Premium Services
Digital Premium Services
Discovery Kids
Discovery Science
Discovery Home & Leisure
Discovery Wings
Discovery Civilizations
SoapNet
BBC America
Much Music
Toon Disney
Noggin
Nick Games & Sports
WAM!
Boomerang
Bloomberg Television
CNN/FN
CNN en Espanol
Inspirational Life TV
Style
Lifetime Movie Network
IFC
BET on Jazz
VH 1 Classic Rock
VH-1 Country
VH 1 Soul
MTV 2
MTV S
MTV X
Biography Channel
History International
Goodlife Television Network
Fox Sports World
Wisdom Network
BET Gospel
Shop NBC
FamilyNet
Encore Group
Encore
Encore Westerns
Encore Action
Encore True Stories
Encore Mystery
Encore Love Stories
HBO Group
HBO East
HBO Plus
HBO Signature
HBO Family East
HBO Comedy East
HBO Zone East
Starz!/Encore Group
Encore
Starz!
Starz! Theather
Starz! BET Movies
Starz! Family
Starz! Cinema
Cinemax Group
Cinemax
More Max East
Action Max East
Thriller Max East
Digital Audio
Music Choice (45 Channels)
Digital Pay-Per-View Channels
In Demand PPV Preview
In Demand (21 Channels)
ESPN Sports Packages
NBA/WNBA League Pass
NHL Center Ice Package
Video On Demand Channel(s)
United Telesystems, Inc.
The Movie Channel Group
The Movie Channel East
The Movie Channel 2
The Movie Channel West
Showtime Group
Showtime East
Showtime 2 East
Showtime 3 East
Showtime Beyond East
Showtime Extreme East
Showtime Digital Package
Showtime Group
The Movie Channel Group
Flix
Sundance Channel
18
TRI-CITIES FIBER NEWORK
Video Services Rates and Charges
Basic Services
Limited Basic (18 Channels)
Expanded Basic (57 Channels)
Standard Basic (75 Channels)
Line Maintenance Plan
Total Basic (75 Channels)
Digital Basic Tier (35 Video Chs. + 45 Audio Chs.)
Premiere Basic (110 Video Chs. + 45 Audio Chs.)
Rate
$10.95
$22.00
$32.95
$1.95
$34.90
$10.50
$45.40
Premium Services
HBO, HBO Plus, HBO Family (Analog Service)
HBO Digital Group (6 Channels)
Showtime Group (5 Channels)
Cinemax Group (4 Channels)
The Movie Channel Group (3 Channels)
Starz Group (6 Channels)
Encore Group (6 Channels)
Digital Basic Tier (35 Video Chs + 45 Audio Chs)
$11.95
$11.95
$10.95
$9.95
$8.95
$8.95
$5.95
$10.95
Packaging
Showtime Digital Combo (Show, TMC, Flix & Sundance
HBO Digital Group and Cinemax Digital Group
Starz Group (6 channels)
Encore Group (6 channels)
$12.95
$19.50
$8.95
$5.95
Digital Premium Discount: (Digital Basic Tier plus)
Two Premium A La Carte or Packaged Services
Three Premium A La Carte or Packaged Services
Four or More Premium A La Carte or Packaged Services
$2.00
$4.00
$6.00
Digital Pay-Per-View Services
IN Demand PPV Movies (21 Channels)
Video On Demand Movies
Sports Packages
Special Pay Per View Events
11/13/02
Equipment Rental
Standard Converter with Remote
Digital Converter (Additional Set)
Digital Converter with Music Choice & PPV
Rate
$1.00
$5.95
$6.95
Installation of Residental Service
Unwired Home
Prewired Home
Multi-Family Residence
Additional Outlet (same trip)
Additional Outlet (separate trip)
Relocate Outlet (same trip)
Relocate Outlet (separate trip)
Wiring Within Walls (per outlet)
Digital Converter (same trip)
Digital Converter (separate trip)
Reconnect Residential Service
$30.00
$20.00
$15.00
$10.00
$15.00
$10.00
$15.00
$40.00
$5.00
$10.00
$20.00
Other Charges
Returned Check Charge
Hourly Service Call
Late Fee
Franchise Fee (City)
FCC Fee (Monthly)
$25.00
$30.00
$2.95
5.00%
$0.00
$3.95
$4.50
(Varies)
(Varies)
United Telesystems, Inc.
19
AT&T Broadband
Tri-Cities
Cable Television Programming Services
Service Rates - 2002
Basic Services
Rate
Equipment Rental (per month)
Basic Service (22 Channels)
Expanded Basic Service (34)
Full Basic Service Service (56 Channels)
Plus applicable franchise fees and taxes
$15.79
$19.69
$35.48
Basic Only Converter
Non-Basic Only Converter(Non-Rebuild)
Non-Basic Only Converter (Rebuild)
Digital Converter
Remote Control
Rate
$2.00
$3.99
$4.85
$4.85
$0.30
Premium Services
Installation & Service
HBO
Cinemax
Showtime
The Movie Channel
Starz! & Encore (Digital Subscription)
$12.99
$12.99
$12.99
$12.99
$10.99
Digital Services
Digital Basic
Digital Programming Access Fee
Digital Packages:
Digital Platinum
Digital Gold
Digital Silver
Digital Bronze
Digital Starter (Requires Subscription to Expanded
Basic Service)
Broadband Monthly Magazine
11/13/02
$12.00
$4.99
$76.99
$62.99
$52.99
$44.99
$6.99
$2.99
Install Unwired Home (Aerial within 125 ft.)
$43.99
Install Prewired Home (Aerial within 125 ft.)
$27.99
Install Additional Outlet--Initial Install
$13.99
Install Additional Outlet-- Separate Trip
$21.99
Relocate Outlet
$18.99
Up/Downgrade of Addressable Services
$1.99
Upgrade Optional Services--Separate Trip
$15.99
Downgrade Optional Services--Separate Trip
$10.99
VCR Connection --Initial Install
$5.99
VCR Connection --Separate Trip
.$12.99
Administrative Fee for Late Payment (Day 30)
$2.95
Administrative Fee for Late Payment (Day 45)
$2.00
Non-Sufficient Funds Charge
$20.00
Field Collection Fee
$20.00
Unreturned Non-Addressable Converter
$90.00
Unreturned Addressable Converter
$158.00
Unreturned Digital Converter
$318.00
Unreturned Analog Remote Control
$4.00
Unreturned Digital Remote Control
$7.19
Hourly Service Charge
$28.49
Trouble Call
$16.99
United Telesystems, Inc.
20
TRI-CITIES FIBER NETWORK
High Speed Data Service
Residential Rates and Charges
2002
Services
Residental:
Rate
w/CATV
Platinum Service - Downstream to 3.0 Mbps
Gold Service -Downstream to 2.0 Mbps
Silver Service - Downstream to 1.0 Mbps
Standard Service - Downstream to 512 Kbps
Other Charges:
Platinum Service - Downstream to 3.0 Mbps
Gold Service -Downstream to 2.0 Mbps
Silver Service - Downstream to 1.0 Mbps
Standard Service - Downstream to 512 Kbps
Rate
No CATV
$68.95
$48.95
$38.95
$30.95
Other Charges:
Additional Email Address (Monthly Fee)
Charge for Data Transfer Over Cap per 50 MB
Installation Services:
$5.00 Additional Email Address (Monthly Fee)
$1.00 Charge for Data Transfer Over Cap per 50 MB
$7.50
$1.50
Installation Services:
Installation (Includes NIC Card & Software)
Installation (No NIC Card & Software)
Dedicated High Speed Cable Outlet
Residental Service Packages
11/13/02
$63.95
$43.95
$33.95
$25.95
Services
Residental:
$99.00 Installation (Includes NIC Card & Software)
$75.00 Installation (No NIC Card & Software)
$50.00 Dedicated High Speed Cable Outlet
$125.00
$100.00
$75.00
Residental Service Packages
Platinum Service
includes: Speeds Up to 3.0 Mbps Downstream and
512 Kbps Up, Dynamic IP Address,
Up to 4 Email Addresses, 7.5 MB Personal Web
Space, Data Transfer Cap of 10 GB
$63.95 Platinum Service
includes: Speeds Up to 3.0 Mbps Downstream and
512 Kbps Up, Dynamic IP Address,
Up to 4 Email Addresses, 7.5 MB Personal Web
Space, Data Transfer Cap of 10 GB
$68.95
Gold Service
includes: Speeds Up to 2.0 Mbps Downstream and
256 Kbps Up, Dynamic IP Address,
Up to 3 Email Addresses, 5 MB Personal Web
Space, Data Transfer Cap of 7.5 GB
$43.95 Gold Service
includes: Speeds Up to 2.0 Mbps Downstream an
256 Kbps Up, Dynamic IP Address,
Up to 3 Email Addresses, 5 MB Personal Web
Space, Data Transfer Cap of 7.5 GB
$48.95
Silver Service
includes: Speed Up to 1.0 Mbps Downstream
and 128 Kbps Upstream, Dynamic IP Address
Up to 3 Email Addresses, 3 MB Personal Web
Space, Data Transfer Cap of 5 GB
$33.95 Silver Service
includes: Speed Up to 1.0 Mbps Downstream
and 128 Kbps Upstream, Dynamic IP Address
Up to 3 Email Addresses, 3 MB Personal Web
Space, Data Transfer Cap of 5 GB
$38.95
Standard Service
includes: Speed Up 512 Kbps Downstream and
128 Kbps Upstream, Dynamic IP Address
2 Email Address, Data Transfer Cap of 3 GB
$25.95 Standard Service
includes: Speed Up 512 Kbps Downstream and
128 Kbps Upstream, Dynamic IP Address
2 Email Address, Data Transfer Cap of 3 GB
$30.95
United Telesystems, Inc.
21
TRI-CITIES FIBER NETWORK
High Speed Data Service
Business Rates and Charges
2002
High Speed Data Services
Business
Monthly
Rate
Standard Business Service - Level 1
Standard Business Service - Level 2
Business Plus Service - Level 1
Business Plus Service - Level 2
Business Elite Service - Level 1
Business Elite Service - Level 2
Direct Business Service - Customized
$49.95
$69.95
$89.95
$99.95
$129.95
$169.95
Quote
Other Charges
Installation
Charges
Rate
Standard Business Service - Level 1
Standard Business Service - Level 2
Business Plus Service - Level 1
Business Plus Service - Level 2
Business Elite Service - Level 1
Business Elite Service - Level 2
Direct Business Service - Customized
$150.00
$200.00
$300.00
$350.00
$500.00
$550.00
Quote
Charge
Additional Static Email Address (Monthly Fee)
Charge for Data Transfer Over Cap per 50 MB
$15.00
$1.50
Monthly
Rate
Business Service Packages
Business Service Packages
Standard Service Level 1
includes: Speeds Up to 512 Kbps Downstream and
128 Kbps Upstream, One Static IP Address
Up to 4 Email Addresses, 5 MB Web Space
Space, Data Transfer Cap of 10 GB
Installation Charge
$49.95 Standard Service Level 2
includes: Speeds Up to 2.0 Mbps Downstream and
256 Kbps Upstream, One Static IP Address
Up to 5 Email Addresses, 7.5 MB Web Space
Space, Data Transfer Cap of 10 GB
$150.00
Business Plus Service Level 1
includes: Speed Up to 512 Kbps Downstream
and 128 Kbps Upstream, Three Static IP Addresses
Up to 10 Email Addresses, 10 MB Web Space
Space, Data Transfer Cap of 15 GB
Installation Charge
$89.95 Business Plus Service Level 2
includes: Speeds Up to 2.0 Mbps Downstream
and 256 Kbps Upstream, Three Static IP Addresses
Up to 10 Email Addresses, 10 MB Web Space
Space, Data Transfer Cap of 15 GB
$300.00
Business Elite Service Level 1
includes: Speed Up to 2.0 Mbps Downstream
and 128 Kbps Upstream, Five Static IP Addresses
Up to 15 Email Addresses, 15 MB Web Space
Space, Data Transfer Cap of 20 GB
Installation Charge
$129.95 Business Elite Service Level 2
includes: Speeds Up to 3.0 Mbps Downstream
and 512 Kbps Upstream, Five Static IP Addresses
Up to 15 Email Addresses, 15 MB Web Space
Space, Data Transfer Cap of 20 GB
$500.00 Installation Charge
Monthly
Rate
$69.95
$200.00
$99.95
$350.00
$169.95
$550.00
Business Direct Service
The Tri-Cities can provide customized service tailored to the high speed data needs of growing organizations
including fiber connnectivity directly to the business within the designated service area.
11/13/02
United Telesystems, Inc.
22
Tri-Cities Residential Telephony Packaging and Pricing
Features
Basic Touch Tone Service-Primary Line
Basic Additional Line
911
Call Waiting
Caller ID (name and number)
3 Way Calling
Call Forwarding
Preferred Call Forwarding
Prioirity Ring
Distinctive Ring
Selective Call Blocking
900/976 Call Blocking
Last Call Return
Speed Dial 8
Speed Dial 30
Non-published number
Listing Omitted from Phone Directory
Standard Directory Listings
Additional Directory Listings
Inside Wire Maintenance
Continuous Redial *66
Anonymous Call Rejection
Customer Code Restriction
Voice Mail
Voice Mail with Extensions
Voice Mail with Pager Notifications
Voice Mail with Pager Notifications & Ext.
11/13/02
A La Carte
Basic
Standard
Family
Family Plus
A La Carte
A La Carte
Rates
Service
Service
Service
Service
Percentages
Avg. Rate
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
15%
$1.94
10%
7%
3%
3%
1%
1%
1%
1%
1%
2%
3%
2%
$0.40
$0.28
$0.12
$0.12
$0.04
$0.04
$0.04
$0.04
5%
15%
2%
$0.08
$0.30
$0.04
$0.00
$0.00
$0.60
$0.09
$0.14
$0.08
$16.95
$12.95
Free
$4.00
$4.00
$4.00
$4.00
$4.00
$4.00
$4.00
$4.00
Free
$4.00
$3.00
$4.00
$2.75
Free
Free
$1.55
$2.00
$2.00
$0.00
$0.00
$4.00
$4.50
$6.95
$7.95
x
x
x
x
x
x
x
x
x
x
x
x
x
United Telesystems, Inc.
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
15%
2%
2%
1%
$0.08
$0.09
$0.08
$0.00
23
Tri-Cities Small Business Telephony Packaging and Pricing
Basic
A La Carte
Features
Basic Touch Tone Service-Primary Line
Basic Touch Tone Service-Secondary Line
Basic Additional Line -Roll Over
911
Call Waiting
Caller ID Deluxe
Caller ID Enchanced
3 Way Calling
Call Forwarding - Busy Line
Call Forwarding - No Answer
Prioirity Ring
Distinctive Ring
Selective Call Blocking
900/976 Call Blocking
Call Return
Call Trace
Speed Dial 8
Speed Dial 30
Non-published number
Listing Omitted from Phone Directory
Standard Directory Listings
Additional Directory Listings
Foreign Directory Listings
Inside Wire Maintenance
Continuous Redial *66
Anonymous Call Rejection
Customer Code Restriction
Voice Mail
Voice Mail with Extensions
Voice Mail with Pager Notifications
Voice Mail with Pager Notifications & Ext.
Information at 411
Courtesy Complete for 411
11/13/02
Rates
$24.95
$24.95
$9.95
Free
$6.50
$10.00
$15.00
$5.00
$4.25
$4.25
$9.00
$9.00
$5.00
Free
$5.00
$6.50
$4.00
$5.00
$2.75
Free
Free
$2.00
$2.00
$4.00
$2.00
$2.00
$2.00
$15.00
$17.50
$20.00
$22.50
$0.75
$7.50
Standard Business
Business Business
Business
Deluxe
Plus
Advantage
Business
A La Carte
A La Carte
Service
Service
Service
Service
Service
Percentages
Avg. Rate
x
x
x
x
x
$1.00
x
x
x
x
x
x
x
x
x
x
x
$3.00
x
x
x
x
x
x
x
x
x
x
x
x
$0.75
$1.00
x
$2.00
x
x
x
x
x
x
x
x
x
x
x
x
3%
10%
x
$0.00
x
x
5%
5%
1%
2%
2%
1%
1%
1%
1%
$0.33
$0.50
$0.15
$0.10
$0.09
$0.04
$0.09
$0.09
$0.05
x
x
2%
1%
3%
2%
1%
$0.10
$0.07
$0.12
$0.10
$0.03
x
x
x
x
x
x
x
x
x
x
x
5%
2%
25%
2%
$0.10
$0.04
$1.00
$0.04
$0.00
$0.00
$1.50
$0.35
$0.40
$0.23
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
United Telesystems, Inc.
x
x
10%
2%
2%
1%
24
Tri-Cities Service Type Distribution
Residential Category Type
Homes Passed
Projected Residential Subscribers
Service Penetration
Video, Telecom and Data Subscribers
Video and Data Subscribers
Video and Telecom Subscribers
Telecom and Data Subscribers
Video Subscribers - Analog Only Customer
Video Subscribers - Analog & Digital Video Only Customer
Telecom Only Customer
Data Only Customer
Commerical Category Type
Commercial Units Passed
Projected Commercial Subscribers
Service Penetration
Video, Telecom and Data Subscribers
Video and Data Subscribers
Video and Telecom Subscribers
Telecom and Data Subscribers
Video Subscribers - Analog Only Customer
Video Subscribers - Analog & Digital Video Only Customer
Telecom Only Customer
Data Only Customer
11/13/02
United Telesystems, Inc.
Video Telecom
29,337
10,561
36%
1,056
2,323
400
2,968
3,814
-
29,337
2,369
8%
1,056
696
189
426
-
Video Telecom
4,541
47
1%
5
12
5
15
10
-
4,541
550
12%
5
5
50
490
-
Data
29,337
3,639
12%
1,056
2,323
189
70
Data
4,541
795
18%
5
50
740
25
Tri-Cities Consolidated Plan
Tri-Cities, Ilinois FTTH/FTTB Broadband Financial Projections - Base Case 2002
Broadband Service Staffing
Year 1
Telecommunications Service Employees
Switch Techs
Overtime eligible
Field Techs
Overtime eligible
Provisioning Reps
Overtime eligible
Total Telecommunications Employees
Year 2
Page:
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
38
Year 10
1
1
1
1
1
2
4
1
1
4
4
2
2
8
2
2
4
4
2
2
10
2
2
4
4
2
2
10
2
2
4
4
2
2
10
2
2
5
5
2
2
11
2
2
5
5
2
2
11
2
2
5
5
3
2
12
2
2
5
5
3
2
12
2
2
6
6
3
2
13
Cable Service Employees
General Managers
Office Manager
MIS Director
Customer Service Representatives
Support Staff
Technical Manager (s)
Headend Technicians
Construction Manager/Plant Manager
Broadband Service Technicians
Installer/Service Technician
Contract Installers
Marketing and Sales Manager
Contract Field Representatives
Total
1
1
1
5
2
1
2
2
3
4
7
1
8
41
1
1
1
7
2
1
2
2
5
4
4
1
8
43
1
1
1
7
2
1
2
1
5
4
4
1
3
37
1
1
1
7
2
1
2
1
5
4
4
1
3
37
1
1
1
7
2
1
2
1
5
4
4
1
3
37
1
1
1
7
2
1
2
1
5
4
4
1
3
37
1
1
1
7
2
1
2
1
5
4
4
1
3
37
1
1
1
7
2
1
2
1
5
4
4
1
3
37
1
1
1
7
2
1
2
1
5
4
4
1
3
37
1
1
1
7
2
1
2
1
5
4
4
1
3
37
Total Telecommunications and Cable Service Employees
45
51
47
47
47
48
48
49
49
50
11/13/02
United Telesystems, Inc.
26
Tri-Cities Consolidated Plan
Tri-Cities, Ilinois FTTH/FTTB Broadband Financial Projections - Base Case 2002
Cash Flow Statement
Year 1
Video Services Revenue
Video Services Operating Expenses
Video Services Customer Cash Flow
Year 2
$934,798 $6,210,252
$1,858,679 $5,163,281
($923,881) $1,046,971
Page:
20
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
$7,168,074
$5,634,973
$1,533,101
$7,471,713
$5,833,710
$1,638,003
$7,714,741
$6,034,353
$1,680,388
$7,967,182
$6,202,741
$1,764,441
$8,304,672
$6,425,251
$1,879,421
$8,578,022
$6,620,871
$1,957,151
$8,862,010
$6,852,074
$2,009,937
$9,237,405
$7,055,848
$2,181,557
Residential High Speed Data Revenue
Residential High Speed Data Expense
Residential High Speed Data Cash Flow
$164,484
$124,954
$39,530
$1,405,262
$548,306
$856,957
$1,903,237
$746,417
$1,156,820
$1,993,411
$766,114
$1,227,298
$2,028,156
$780,476
$1,247,680
$2,064,116
$795,705
$1,268,411
$2,163,840
$817,624
$1,346,216
$2,203,325
$833,950
$1,369,375
$2,244,019
$850,780
$1,393,239
$2,353,980
$874,864
$1,479,116
Commercial Video and High Speed Data Revenue
Commercial Video and High Speed Data Operating Exp.
Commercial Cash Flow
$764,684
$69,872
$694,812
$2,463,847
$413,999
$2,049,848
$2,313,173
$447,171
$1,866,002
$2,410,835
$457,982
$1,952,853
$2,439,764
$470,157
$1,969,607
$2,469,040
$474,200
$1,994,841
$2,573,293
$485,691
$2,087,602
$2,604,172
$489,932
$2,114,239
$2,635,421
$494,234
$2,141,186
$2,746,709
$514,546
$2,232,164
Telecommunications Revenue
Telecommunications Expenses
Telecommunications Cash Flow
$769,565
$584,217
$185,348
$5,354,355
$1,961,760
$3,392,596
$6,171,367
$2,126,961
$4,044,406
$6,480,207
$2,208,885
$4,271,322
$6,803,544
$2,292,915
$4,510,629
$7,143,877
$2,511,742
$4,632,135
$7,500,004
$2,607,963
$4,892,041
$7,875,568
$2,799,958
$5,075,610
$8,269,169
$2,910,450
$5,358,719
$8,682,572
$3,168,176
$5,514,396
Total Revenue
Total Operating Expense
EBITDA
Interest Earned
Municipal Bond - Interest
Municipal Bond - Principal
Municipal Bond - Total
Net Operating Cash Flow
Cummulative Cash Flow
$2,633,530 $15,433,716 $17,555,850 $18,356,166 $18,986,205 $19,644,216 $20,541,809 $21,261,087 $22,010,619 $23,020,666
$2,637,722 $8,087,346 $8,955,522 $9,266,690 $9,577,902 $9,984,388 $10,336,529 $10,744,712 $11,107,538 $11,613,434
($4,192) $7,346,371 $8,600,328 $9,089,476 $9,408,304 $9,659,828 $10,205,280 $10,516,376 $10,903,082 $11,407,233
$685,325
$189,780
$145,673
$218,898
$279,394
$321,358
$367,483
$422,356
$482,552
$549,280
$1,492,688
$0
$1,492,688
$2,985,375
$0
$2,985,375
$2,985,375
$0
$2,985,375
$2,985,375
$1,460,314
$4,445,689
$2,880,504
$3,025,499
$5,906,003
$2,735,086
$3,170,917
$5,906,003
$2,582,679
$3,323,324
$5,906,003
$2,422,947
$3,483,056
$5,906,003
$2,255,537
$3,650,466
$5,906,003
$2,080,081
$3,825,922
$5,906,003
($811,554) $4,550,775
($811,554) $3,739,221
$5,760,626 $4,862,685 $3,781,695 $4,075,184 $4,666,760 $5,032,729 $5,479,631 $6,050,510
$9,499,847 $14,362,532 $18,144,227 $22,219,410 $26,886,171 $31,918,900 $37,398,531 $43,449,041
Operating Expense Ratio
Operating Income Ratio
100%
0%
52%
48%
51%
49%
50%
50%
50%
50%
51%
49%
50%
50%
51%
49%
50%
50%
50%
50%
Debt Service Coverage Ratio
Rate of Return on Depreciated Assets
Outstanding Debt Ratio to Assets
0.00
2.15%
0.95
0.00
14.78%
0.97
2.93
18.17%
1.00
2.09
20.61%
1.04
1.64
22.91%
1.09
1.69
25.37%
1.16
1.79
29.08%
1.24
1.85
32.83%
1.35
1.93
37.68%
1.49
2.02
44.19%
1.68
71%
29%
65%
35%
65%
35%
65%
35%
64%
36%
64%
36%
63%
37%
63%
37%
62%
38%
62%
38%
Cable Services Percentage of Total Revenue
Telecom Services Percentage of Total Revenue
Cash on Hand
11/13/02
$27,925,259
$9,711,552 $14,593,185 $18,626,245 $21,423,883 $24,498,888 $28,157,074 $32,170,155 $36,618,637 $41,625,740
United Telesystems, Inc.
27
Tri-Cities Consolidated Plan
Tri-Cities, Ilinois FTTH/FTTB Broadband Financial Projections - Base Case 2002
Sources and Uses
Year 1
Year 2
Page:
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
22
Year 10
Sources
Begin Cash on Hand
Paid In Capital - Broadband Service Provider
Revenue Bond Issue Proceeds - Capital Budget
Revenue Bond Issue Proceeds - Capitalized Interest
Cost of Revenue Bond Financing
Original Issue and Underwriters Discount
Revenue Bond Financing Insurance
Excess Revenue Bond Proceeds
Interest Earned
Utility Plant Improvement Fund
EBITDA
Total Sources
$0 $27,925,259 $9,711,552 $14,593,185 $18,626,245 $21,423,883 $24,498,888 $28,157,074 $32,170,155 $36,618,637
$100,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$55,235,776
$0
$0
$0
$0
$0
$0
$0
$0
$0
$5,970,750
$0
$0
$0
$0
$0
$0
$0
$0
$0
$526,997
$0
$0
$0
$0
$0
$0
$0
$0
$0
$781,791
$0
$0
$0
$0
$0
$0
$0
$0
$0
$333,105
$0
$0
$0
$0
$0
$0
$0
$0
$0
$1,581
$0
$0
$0
$0
$0
$0
$0
$0
$0
$685,325
$189,780
$145,673
$218,898
$279,394
$321,358
$367,483
$422,356
$482,552
$549,280
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0 $7,346,371 $8,600,328 $9,089,476 $9,408,304 $9,659,828 $10,205,280 $10,516,376 $10,903,082 $11,407,233
$63,635,325 $35,461,409 $18,457,553 $23,901,559 $28,313,942 $31,405,069 $35,071,651 $39,095,806 $43,555,789 $48,575,149
Uses
Capital Expenditures
Operating Loss
Revenue Bond Issue Interest
Revenue Bond Principal Reduction
Cost of Revenue Bond Financing
Original Issue and Underwriters Discount
Revenue Bond Financing Insurance
Reimbursement - Broadband Service Provider
Utility Plant Improvement Fund
Property Tax Expense
Fund Transfer
Total Uses
$32,471,293 $22,764,482
$4,192
$0
$1,492,688 $2,985,375
$0
$0
$526,997
$0
$781,791
$0
$333,105
$0
$100,000
$0
$0
$0
$0
$0
$0
$0
$35,710,066 $25,749,857
End Cash on Hand
$27,925,259
Total Amount of Revenue Bond Financing:
$62,850,000
11/13/02
$878,993
$0
$2,985,375
$0
$0
$0
$0
$0
$0
$0
$0
$3,864,368
$829,625
$0
$2,985,375
$1,460,314
$0
$0
$0
$0
$0
$0
$0
$5,275,314
$984,056
$0
$2,880,504
$3,025,499
$0
$0
$0
$0
$0
$0
$0
$6,890,059
$1,000,178
$0
$2,735,086
$3,170,917
$0
$0
$0
$0
$0
$0
$0
$6,906,181
$1,008,575
$0
$2,582,679
$3,323,324
$0
$0
$0
$0
$0
$0
$0
$6,914,577
$1,019,648
$0
$2,422,947
$3,483,056
$0
$0
$0
$0
$0
$0
$0
$6,925,651
$1,031,149
$0
$2,255,537
$3,650,466
$0
$0
$0
$0
$0
$0
$0
$6,937,152
$1,043,406
$0
$2,080,081
$3,825,922
$0
$0
$0
$0
$0
$0
$0
$6,949,409
$9,711,552 $14,593,185 $18,626,245 $21,423,883 $24,498,888 $28,157,074 $32,170,155 $36,618,637 $41,625,740
United Telesystems, Inc.
28
Project Financing Assumptions
ƒ Revenue Bonds Issued by the Tri-Cities
with General Obligation Pledges
ƒ 4.75% Net Interest Cost
ƒ Interest Only for 3 Years
ƒ Interest Capitalized for 2 Years
ƒ Amortized for Additional 15 Years
11/13/02
United Telesystems, Inc.
29
Project Capitalization Assumptions
•
•
•
•
•
•
•
Capital Budget
Capitalized Interest
Underwriter’s Discount
Bond Issuance Cost
Bond Insurance
Excess Proceeds
Total Bond Issue
11/13/02
United Telesystems, Inc.
$55,235,776
$5,970,750
$781,791
$526,997
$333,105
$1,581
$62,850,000
30
Strategic Next Step Options
¾ If City Council elects to proceed:
1. Research and define financing options.
2. Pursue partnering arrangement with
neighboring municipal entities or service
providers.
3. Hold public referendum.
4. If majority vote, proceed to develop
system.
11/13/02
United Telesystems, Inc.
31
Broadband Network Development
Phase I – Prior to Bond Issue Closing
• Initiate Revenue Bond Financing
• Vendor Selection
• Mapping, Engineering and Design
Phase II – After Bond Issue Closing
• Technical and Customer Service Staffing
• System Construction
• Finalize Service Offerings and Rates
• Sales and Marketing Strategic Planning
11/13/02
United Telesystems, Inc.
32