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Henry County Fiber Optic Initiative - PowerPoint PPT Presentation

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Henry County Fiber Optic Initiative. March 5, 2012 9:00 AM. Overview. The problem The solution Why fiber is “future proof” What is needed, next steps. The Problem. Current Expenses Level of Service Economic Development. Expenses – Leasing Service Today. Current Level of Service.

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Henry County Fiber Optic Initiative

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Presentation Transcript
  • The problem
  • The solution
  • Why fiber is “future proof”
  • What is needed, next steps
the problem
The Problem
  • Current Expenses
  • Level of Service
  • Economic Development
current level of service
Current Level of Service
  • Schools currently have .0015 Mbps per student of Internet bandwidth or about 1/1000th what home broadband delivers.
    • Equates to about 11.3 Mbps per school
  • Henry County currently have .02 Mbps per employee of Internet bandwidth or about 1/100th what home broadband delivers.
    • Equates to about 1.1 Mbps per building.
    • Henry County government utilizes more bandwidth per employee because we also service many E-Services directly to Citizens, such as Video of Board Meetings, Electronic access to Tax information and payments,
  • Many areas of the county are not serviceable at all, including most parks.
economic development
Economic Development
  • Henry County has been eliminated for consideration because of lack of redundant suppliers of Fiber Optics. Cite Douglas County, Microsoft Datacenter most recently.
  • http://www.11alive.com/video/default.aspx?bctid=993700419001
  • Targeted Industry Study – Cite Study
    • Firms are beginning to near-shore customer-care and processing centers for complex support and solutions management function
    • Proposed new investment in fiber telecommunications infrastructure would provide a transformative new asset
    • Digitization of every form of information continually opening new opportunities for entrepreneurs and innovators
end results
  • Flexibility and ability to serve UN-Served locations such as Mount Carmel Park Soccer Complex, traffic signals, etc.
  • 10 times the bandwidth for less cost than is currently being paid for service.
  • Provides Private Sector opportunity for Economic Development (Wholesale of Dark Fiber Only – NO services).
definition of terms used
Definition of Terms used
  • Dark Fiber – Fiber that has not been attached to any equipment, and provides no utility or benefit without equipment. No services are provided over dark fiber.
  • Interconnect – Connections made from one building to another. This is often called a LAN or Local Area Network, sometimes called a MAN, or Metropolitan Area Network. Allows transmission of data from one building to and from another. Alone, this is NOT the Internet.
  • Internet – A global network of interconnected networks.
    • It is a network of networks that consists of millions of private, public, academic, business, and government networks, of local to global scope, that are linked by a broad array of electronic, wireless and optical networking technologies.
    • It is over the Internet that computer users are able to access email, web sites, and many other services.
    • The HUB of the Internet for our area is located in Downtown Atlanta, and on a map looks much like transportation network.
the how continued
The “HOW”, (continued)
  • Build a Fiber Network, as specified in plan.
  • Government Only Service for HCBOC, HCBOE, HCWSA, Cities and other government entities optional (their choice).
  • Operations of the network would be outsourced to a company experienced in running such a network.
  • Any surplus capacity (i.e. Fiber strands) would be offered for lease in a Non-Discriminatory fashion at market rates for wholesale dark fiber access. (limit of 20% available to any single company or subdivisions including parent/child of company)
    • Any revenue to be used to pay down debt service and/or to expand network for economic development and/or education.
    • Note: Due to construction methods, petroleum costs, labor costs, etc. It can actually be less expensive to buy MORE fiber than less.
      • Example: A 4 strand Fiber Cable costs about $110 per strand for 1000 Feet. A 144 strand Fiber Cable costs about $16 per strand for 1000 feet. When bought in bulk these numbers go down even more. http://store.cablesplususa.com/aq1444h1f-dwb.html
      • Most of the cost associated with a Fiber Optic network is the LABOR and permitting costs, not the raw material.
the how continued1
The “HOW”: continued
  • Total Cost = $14,000,000 financed at 2.5% for 15 years.
  • Variable or Recurring costs –
    • Principle and Interest = $1,143,590.50
    • Annual Operating Expenses = $331,000 (46)
  • Total Annual Expenses = $1,474,590
  • 15 Years, and we own the whole thing. Then the Government, Schools, expenses go to the operating costs only of $331,000 per year.
  • Savings Per Year after payout = $1,169,000
  • Level of Service increased 10 X current levels for Internet Access and 50 X for backbone infrastructure.
    • Each government facility and school would receive 100 Mbps of Internet on a 1 Gigabit Dedicated Fiber Network
why fiber is future proof
Why Fiber is “future proof”
  • The laws of physics limits the capacity that wireless can accommodate in a terrestrial setting.
  • There is a 2.2 second time delay for satellite transmissions (due to the distance and the time it takes signals to be routing to and from earth) – this is called “latency”.
  • Speed of light – anything faster?
  • Wave-division multiplexing – means one strand of fiber can simultaneously transmit signals at different wave lengths.
next steps
Next Steps
  • Staff seeks approval to pursue Letters of Commitment from HCBOE, HCWSA
    • Other letters of commitment from other government entities (Cities, GDOT, etc.)
  • Staff seeks approval to move forward with financing options to bring back to the Board for further discussion.
  • Staff seeks approval to engage Rural Broadband to update the business plan – removing the commercial component.