MN Broadband COnference 2018

1. Broadband Plan
Planning Charrette Findings

2. Our Broadband Vision
• What we want:
• More access for clusters of people outside of the major cities
• Equitable Access (Ubiquitous Access)
• Create opportunities to connect to broadband when providers install new
utility infrastructure
• Broadband services that stay current with technology
• What we have done/are doing:
• Expanding countywide broadband is a goal of the Waseca Economic
Development Authority (EDA)
• The Waseca EDA and the Waseca County Commissioners have engaged
speakers to educate the public on the importance of high speed internet.
• Charrette/gauging interest from the public

3. 2016 2018

4. Existing Broadband Providers
• Telephone Companies
• Bevcomm
• CenturyLink
• Consolidated Communications
• Frontier
• Jaguar Communications
• Manchester-Hartland
• Cable Companies
• Mediacom Communications
• Midco
• Viasat
• Wireless Companies (Fixed)
• XtraTyme
• Ltd Broadband
• Northfield WiFi
• Radio Link
• Cellular
• ATT
• Verizon
• Sprint
• T-Mobile

5. Existing Fiber Assets:
Dark Blue: Consolidated
Light Blue: Arvig
Also: Jaquar, MediaCom,
CenturyLink and Frontier
Plus “Longhaul” Fiber from Level 3,
Zayo, Sprint

6. Technology Decisions
• Fiber to the Home
• Capital Costs provided for GPON (distributed and centralized), and
Active Ethernet
• Provided Capital Costs for (4) major towns/cities: Waseca, Janesville,
New Richland, Waldorf and Unserved Areas

7. Partnerships (in Addition to Service Providers)
Medical
• Mayo Clinic (close proximity to Rochester MN)
• Veterans Administration (7% of population are veterans)
• Boston Research (major medical device manufacturing company)
• MedConnect (Regional COG project)
Energy
 Xcel
 ITRON (radio devices to remotely read water and natural gas resources)
 Innovative Power Solutions (permits for solar farms)
 Ethanol Plant (Cenex)
Agricultural, Public Safety, etc.
 Ag Research, University of MN, Birdseye, American Foods, Similar Food Processors
 Self Driving Tractors, Precision Farming (Department of Transportation, Regional COG)
 FirstNet

8. Finance, Major Assumptions
Major Assumptions Waseca New Richland Janesville Waldorf
Unserved
Rural Areas
Totals
# Parcels/Passings 4040 570 990 120 2200 7920
# Poles 99 20 28 7 607 761
Est. Aerial Miles 3.00 0.60 0.85 0.20 18.40 23
Est. UG Miles 57.00 11.40 16.15 3.80 349.60 438
Aerial % 5% 5% 5% 5% 5%
UG % 95% 95% 95% 95% 95%
Density HH/Mile 67.33 47.50 58.24 30.00 5.98
Take Rate 40% 40% 40% 40% 40%
Make Ready Cost per mile
(all in labor only)
$19,074.00 $19,074.00 $19,074.00 $19,074.00 $19,074.00
ADSS or Strand/Lash Strand/Lash Strand/Lash Strand/Lash Strand/Lash Strand/Lash
Missile Bore/Open Trench % 6% 6% 6% 6% 6%
Directional Bore % 83% 83% 83% 83% 8%
Plow % 6% 6% 6% 6% 85%
LD Downtown % 5% 5% 5% 5% 1%
HD Downtown % 0% 0% 0% 0% 0%
Rock Adder % 5% 5% 5% 5% 5%
Cut/Restore % 2% 2% 2% 2% 2%

9. Finance, Capital Cost Estimates
Pricing Summary - Distributed Split Architecture
Item Description Unit Waseca New Richland Janesville Waldorf
Unserved
Rural Areas
Totals
1 Project Cost 10,893,401.96$ 2,081,383.46$ 3,053,020.08$ 730,481.41$ 26,698,883.81$ 43,457,170.74$
2 Cost per HHP 2,696.39$ 3,651.55$ 3,083.86$ 6,087.35$ 12,135.86$ 5,487.02$
3 Cost per HHS 6,740.97$ 9,128.87$ 7,709.65$ 15,218.36$ 30,339.64$ 13,717.54$
4 Cost per MI 181,556.70$ 173,448.62$ 179,589.42$ 182,620.35$ 72,551.31$ 94,267.18$
5 Engr. & Const Mgmt Labor Project Cost 610,217.70$ 88,085.70$ 150,827.18$ 19,374.30$ 757,106.64$ 1,625,611.52$
6 Aerial Labor Project Cost 93,572.00$ 18,714.40$ 26,547.02$ 6,308.04$ 573,838.36$ 718,979.81$
7 UG Labor Project Cost 6,074,880.38$ 1,204,905.24$ 1,715,129.49$ 398,897.30$ 16,468,042.48$ 25,861,854.89$
8 Tech Services Labor Project Cost 340,179.92$ 99,591.20$ 128,878.69$ 68,518.63$ 153,830.53$ 790,998.98$
9 CPE Installation Labor Project Cost 827,738.73$ 117,565.35$ 203,118.30$ 25,067.85$ 450,614.00$ 1,624,104.23$
10
CPE Materials including
splitters
Project Cost
1,055,671.87$ 149,955.46$ 258,992.16$ 31,910.52$ 574,818.34$ 2,071,348.34$
11 OSP Materials Project Cost 1,697,235.20$ 312,347.43$ 464,871.07$ 98,061.09$ 7,585,167.05$ 10,157,681.85$
12 Electronics Project Cost 193,906.18$ 90,218.68$ 104,656.18$ 82,343.68$ 135,466.41$ 606,591.13$
Overall
$26.7 Million to Build to Unserved Rural Areas
$16.7 Million to Build to Cities, that are Essentially “Served”

10. Financial Model Results
• Ran several financial models:
• All Homes/Businesses: PPP for the entire area with a Revenue
Share, is not sustainable without Supplemental Funding (grants) or
Supplemental Revenue (property taxes)
• Unserved Only Homes/Businesses – again, not sustainable without
Grant monies or Supplemental Revenue
• Unserved Homes/Businesses, With a 50% grant, (Service Providers
pay 20%) and an annual property tax assessment of $150 - $200 for
8-10 years
• Debt can be paid off completely within 8-10 years
• Retain Asset for Other Potential Applications, Control

11. Deliverables
Dig Once/Shadow Conduit Policies
 White Paper, Sample Policies (Reduce cost to build from $30/ft to $5/foot
during work in the right of way)
Positioning and Talking Points, Importance of Broadband
 White Papers
 Key Stakeholders Identified
 Presentations
Existing Services and Pricing
Capital Cost Estimates
Financial Modeling and Framework for Service Provider Discussions