MBI Municipal Workshop

April 2015

Becket

Ashfield

New Salem

Workshop Agenda

Workshop Goal: Engage in productive dialogue over Last Mile initiative

and town objectives, questions, concerns.

Program Overview

Roles & Responsibilities

MBI

Municipalities/MLPs

Private Sector

Anticipated Project Types

Regional FTTP Network through a municipal cooperative (e.g. WiredWest)

Regional FTTP Network with municipal RFP for operator/enterprise partner

Independent municipal build with enterprise partner

Design, Construction & Program Management

Grant Application Process & Planning Grants

Open Conversation & Next Steps2

Last Mile Program Overview

Last Mile Program Goal:

Partner with towns to extend broadband service in every unserved

community.

Build a sustainable, state-of-the-art network cost-efficiently and

professionally.

Extend broadband service in high-cost towns with existing cable providers.

3

Last Mile Program Overview

Progress To-Date:

$50 million secured from Legislature and Governor Baker.

Cable/Broadband Workshop held 3/5/15.

Construction model of 44 town pure fiber network.

Premise counts/mapping of all unserved and cable towns.

Municipal assistance program with FRCOG on borrowing, warrants.

MBI ready to launch grant process & next steps.

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Roles & Responsibilities: MBI

MBI’s role is to provide state support (financial and otherwise) for

municipal projects extending broadband service to town residents.

Grant administration and management of state funds.

MBI expertise to assist towns selecting broadband options.

Transparency to the public and municipalities.

No MBI ownership of Last Mile network.

MBI Services & Support to Towns can Include:

Technical assistance, legal advice & consultation.

Project management, design & construction for regional network.

RFQ/RFPs for design & engineering, construction, operators & ISPs.

State grants to reduce town costs for Last Mile construction.

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Roles & Responsibilities: Towns & MLPs

Decide what, if any, Last Mile solution is right for its residents.

Make decisions regarding network build, and issues of costs, ownership,

and operations.

Commit to town share of project costs.

Towns have through June 2016 to vote – MBI will maintain each town’s

share of state funding for qualifying projects.

Towns May Choose To:

Partner through a municipal cooperative (e.g WiredWest) to develop &

operate a regional network.

Seek private sector partners for its network build or for an operator or

ISP.

Seek alternative technologies (to fiber) for service in its town.

Request assistance from MBI.6

Roles & Responsibilities: Private Sector

Private vendors and contractors can be involved in the Last Mile, from design,

construction and project management, to potentially including the network

operator and ISP.

Towns need to:

Following legal and prudential requirements for procurement (RFPs).

Review legal agreements for enterprise partners.

Protect themselves on issues of network solvency, ownership, operational

costs and other issues.

MBI can help.

7

Program Assumptions

8

Estimated cost $112-119M.

Desktop modeling performed for all cost estimates.

Modeled costs are based on a GPON-FTTP build across 44 towns.

Residential services can include Data-Internet, Voice & Video-TV.

Alternatives to fiber-only based on town request.

Project complexity requires strong program management.

9

GPON-FTTP Model: Network Architecture

For our network model we applied an architecture consistent with Fiber-To-

The-Premise best practice deployments.

POI: • Connect Cost• Backhaul and

redundancyFiber: • 12F Cable• Core Network

Labor

Distribution Network

Hut

OLT

Local Network Drop

VaultUnderground

Cable (Armored)

Core Network

Optical Line Termination

POI

Aerial Cable (Unarmored) NAP

Multiport

Manhole

Optical Network Terminal

12F-144F Fiber

Net

wo

rk C

om

po

nen

ts

Optical Network Terminal

Fiber: • 2F Drop Cable • Drop Installation Labor

Broadband ModemVideo CPEDriveway Length

Cabinet:• 144F (w/ components)

Fiber: • 12F-144F Armored Cable• 12F-144F Unarmored Cable

NAP: • 4-port Multiport• 8-port Multiport• 16-port MultiportOverLashing to MBI123 Network

Hut: • Construction (w/

components)• Environmental • Permitting

Fiber: • 12F Armored Cable• 12F Unarmored Cable

OverLashing to MBI123 Network

Distribution Network Local Network DropCore Network

144FCabinet

Work Breakdown: “Pure Fiber”

Executing the Project:

Utilize Design-Bid-Build Process

Stakeholders: State, Towns, WW, Private Sector, & Utilities

Functional areas and procurements; OPM, Design-Engineer, Construction

Firm(s) & Systems Integrator

Tight controls on the Pole Application & Make Ready process

Create logical & geographic areas : “Zones & Clusters”

Sc

op

eItems/Tasks Last Mile

Pole Count 62,000

Fiber Miles 2000

POI / Network Hut 44

Customer Premises 26000

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Alford

Ashfield

Becket

Blandford

Charlemont

Chesterfield

Colrain

Cummington

Egremont

Florida

Goshen

Hancock

Hawley

Heath

Hinsdale

Lanesborough

Leyden

Middlefield

Monroe

MontereyMontgomery

Mount Washington

New Ashford

New Braintree

New Marlborough

New Salem

Otis

Peru

Petersham

Plainfield

Princeton

RoweRoyalston

Sandisfield

Savoy

Shutesbury

Tolland

Tyringham

Warwick

Washington

Wendell

West Stockbridg

e

Windsor

Worthington

Springfield

Worcester

Leverett*

Construction Zones & Clusters

Benefits:

Drives down cost of mobilization.

Develops logical work groups for Make Ready work activities.

Run parallel projects with multiple construction companies.

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Scope of Work for Major Procurements

Design and

Engineering

Construction Firm(s) Systems Integrator

Preliminary Design of

Network Architecture Installation of all Fiber Huts

Commissions Network

into Service

Conduct Detailed

Engineering Study to

confirm project costs

Integration of Fiber into

Middle Mile and Backhaul

connectivity

QA/QC all Construction

work

Equipment Manufacturer

Selection (via RFP) and

Product Compliance

Installation of all Strand and

Fiber and Equipment (OSP)

Commission End User

Services

Project Management

Vendor management and third party rights

License applications

PermittingCost

accounting

Construction management

Acceptance process

Construction

Bid packages

Field supervision

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Design Considerations

13

Town Participation & Premise Count

Network Architecture

GPON, XPON Versus Active Ethernet

100% Premise Coverage Versus Pre-Subscription

IPVideo - TV Versus Other-the-Top (OTT)-Streaming

Designing by Adjacent Town Population Centers

Pole Licensing & Asset Ownership

Agent Relationship with Multiple Attachment Agreements

Overlashing & Leasing Rights

Transferring Ownership

Construction Timeline: “Cluster Example”

Initial Town

Approval

Make Ready

Final Design &

Procurement

Construction

Systems Integration

and Commissioning

Month 1

Month 28

Month 16

Month 30

Month 29

Ready for Service

Month 14

Construction Timeline Factors:

•A 30-month duration to complete

each 10,000~ pole construction

cluster.

•6 – 9 towns per construction cluster.

•The initial town approval date, which

determines cluster assignment.

Timeline Assumptions:

• Clusters will be staggered to

minimize gridlock (90 days).

• Cluster scheduling takes into

account: geography, population,

utility capacity, and preliminary

design completion.

• Avg. pole span is 180’.14

Last Mile Construction Timeline

State Allocates $50M

20192018201720162015

OPM RFP

Community Outreach:Establishing Priorities

OPM Selected

Design Firm Selected

Pole Survey Apps &Make Ready for Clusters 1 & 2 (10-18 towns)

Construction Cluster 1

Construction Cluster 2

Pole Survey Apps &Make Ready for Clusters 2 -3-4 (10-25 towns)

Pole Survey Apps &Make Ready for Clusters 4 & 5 (20-44 towns)

Construction Cluster 3

Construction Cluster 4

Construction Cluster 5

2014

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Major Milestones

Milestones Dates

Select Board Resolution By December 31, 2014

Town Meeting Approves Bond Debt Rolling basis: Spring 2015 through Summer 2016

Owners Project Manager Selection Summer 2015

Engineer Firm Selection Summer 2015

Preliminary Design and Pole Survey Rolling basis: Fall 2015 through Winter 2016

Make Ready Process Rolling basis: Winter 2015 through Winter 2017

Construction Period Rolling basis: Fall 2016 - on

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Grant Process: Why & Who

Process Transparency

Consistency & Equity Across Towns

Fiduciary Responsibility

Eligible Applicant(s)

Town(s)

MLP(s)

MLP Cooperative

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Grant Process: Allocation

Allocation Model – $40 Million

18M Professional Services, Engineering & Legal

22M Make Ready & Construction Costs

Initiative Types

Scenario 1: Regional Network Project

Scenario 2 : Independent Town Project

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Grant Process: Eligibility Criteria

Be one or more of the “unserved” towns.

Propose a Last Mile deployment project to provide

affordable, high-speed broadband access.

Demonstrate capacity to operate, maintain and provide

services or describe plan to obtain services.

Demonstrate a commitment to fund town costs of the

project (beyond state grant amounts or enterprise

investments).

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Last Mile Broadband Services Grant Solicitation

Solicitation Description

Application

Introduction

Approach to Project Implementation

Approach to Operations and Service Provider

Legal Compliance and Authority

Agreement(s)

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Broadband Planning Assistance Grant Solicitation

Eligible Applicant(s)

Town(s)

MLP(s)

MLP Cooperative

Amount - $5,000 per Town

Uses

Planning

Preliminary Marketing

Feasibility

Legal & Financial 21

Grant Timing

Last Mile Broadband Services Grant Solicitation:

Release of final Grant Solicitation mid-May 2015

See released Grant Solicitation for final dates (rolling basis)

Last Mile Broadband Planning Assistance Grant

Solicitation:

Release of final Grant Solicitation mid-May 2015

See released Grant Solicitation for final dates (rolling basis)

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Questions &

Discussion