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Early 2024 Holland City Fiber Update

Daniel Morrison
February 09, 2024
260

Early 2024 Holland City Fiber Update

Presented at a Holland City Council Study Session on January 24, 2024.

An abbreviated version was shared at a City Council Regular Meeting on February 7, 2024.

Daniel Morrison

February 09, 2024
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Transcript

  1. Local. Reliable. Efficient. Essential.
    Broadband Services
    Discussion
    January 24, 2024

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  2. Agenda
    • Review of Progress
    • Planning and Design
    • Construction
    • Operations
    • Marketing
    • Service Delivery
    • Proposed Rates

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  3. • CTC engaged for Owner’s Engineering services
    • EX2 engaged for Design and Build services
    • Summer/Fall 2023 – High Level and Detailed Level design work
    • January 2024 – Groundbreaking
    • Spring/Summer 2024 –Fulfillment construction/service by ITG
    Communications and Service Activation for first Fiberhoods
    Review

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  4. Planning and Design

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  5. Progress from eX²
    • High Level Design Complete for all Fiberhoods.
    • First 50% of Materials received
    • Detail Level Design for Fiberhoods 2&3 completed
    • Detail Level Design for FH 4-15 currently in review by CTC
    • Project Timeline: Passings Project slated to finish in Spring 2026

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  6. Detailed Design

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  7. Construction

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  8. January 9 Groundbreaking

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  9. Marketing & Communications
    • Door tags-48hrs before construction​
    • Postcards-mailed out.
    • Fiber Internet Landing Page
    Launched
    • With minimal Marketing until project is
    fully kicked off, we are seeing
    interests averaging 125 per month.

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  10. FY24 Operational Initiatives
    • Staffing
    • 3 new permanent positions
    • 2 temporary positions
    • Software systems
    • Dispatch for Installations and Support
    • Branded BPWFiber app
    • Customer self-service
    • GIS Fiber Management System Upgrade
    • Holland City Fiber Customer Experience TA
    • Edge Upgrade from 2 Gbps to 10 Gbps

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  11. Marketing Plan
    Tactics
    • Website – collecting interest and
    starting applications
    • Email campaign 1 – project
    updates to people who express
    interest.
    • Email campaign 2 – all City of
    Holland that says when a fiberhood
    needs first wave sign ups
    • Direct mail campaign – post cards
    to all addresses in a fiberhood for
    first wave sign up

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  12. Marketing Plan
    Tactics
    • Social media posts – project
    updates, milestones
    • Billboards – Chicago Drive
    and 8th Street, westbound
    • PR – Project updates focused
    to local media (Holland
    Sentinel and WHTC)
    Events
    • Public Meeting at library
    • Table at local festivals
    • Fiesta
    • Pride
    • Juneteenth
    • International Festival

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  13. Service Delivery
    From the constructed passing network
    to the Home

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  14. • Fiber Internet Fulfillment Services (Fiber to the Home)
    • Drop construction materials identification - now
    • Fulfillment Service to begin late Spring early Summer of 2024
    ITG expansive footprint and experience enable action at any scale or velocity.
    Expert work-class operations. Extensive coverage in the U.S.
    250k​
    miles of fiber​
    installed​
    20+​
    years of blue chip​
    relationships
    100+​
    locations​
    throughout the US​
    6,000+​
    employees and​
    contractors
    HCF: Estimate 220 new customers/month
    Aerial & Underground Fiber to the Home: 3-4/day/crew
    In-home installation and activation: 5-6 /day/crew
    HBPW Technicians also participate in In-Home activities
    Optional Service: Customer Onboarding and Support and
    the capacity to add more field crew on demand.

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  15. Proposed Pricing Plan
    • Fiber Internet 2 Gig
    • 2 Gigabit internet service
    • $45.00/Month
    • Fiber Internet 10 Gig
    • 10 Gigabit internet service
    • $125.00/Month
    • All Services include –
    • Symmetrical Upload and Download speeds
    • Free Router
    • No Data Cap
    • No Contract

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  16. Proposed Pricing Plan – Options
    • Enhanced Service
    • 24x7 Support
    • Static IP Address
    • Service Level Agreement
    • +$150.00/Month
    • WiFi Mesh Range Extender
    • Additional Wifi Coverage
    • +$5.00/Month/Access Point
    • Additional IP Addresse
    • +$3.00/Month/IP Address

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  17. Proforma Analysis Assumptions
    • Blended per month service cost = $72.00
    • 85% 2G service
    • 15% 10G service
    • 10% Enhanced service
    • 5% Additional IP address
    • 3% Mesh extender
    • Capitalized labor ends in 2027 (dip in 2028 operating income)
    • Fiber passing depreciation starts in FY2028
    • Electric loan repayment continues until 2036
    • 10% Contingency added to total expense

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  18. Proforma Analysis
    55% take rate after year 3

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  19. Proforma Analysis
    31% take rate after year 3

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