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.

Transcript

1. Local. Reliable. Efficient. Essential. Broadband Services Discussion January 24, 2024
2. Agenda • Review of Progress • Planning and Design • Construction • Operations • Marketing • Service Delivery • Proposed Rates
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
4. Planning and Design
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
7. Detailed Design
8. Construction
9. January 9 Groundbreaking
10. Boring Rig
11. 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.
12. Operations
13. 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
14. 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
15. 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
16. Service Delivery From the constructed passing network to the Home
17. • 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.
19. 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
20. 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
21. 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
22. Proforma Analysis 55% take rate after year 3
23. Proforma Analysis 31% take rate after year 3
24. Questions?