What is a True Open Access Network?

What if every freight company had to build their own roads? What would the price to get a package delivered be? And who would build roads to remote locations?

Comparison between a municipality and a private company What are their goals and skills? Municipalities’ goals with broadband Job creation Innovation New and staying businesses Quality of life - residents staying/moving in = Secured or higher tax revenue Municipalities’ skills Maintaining municipality owned facilities and infrastructure Private companies’ goals with broadband Maximizing profits Dividend to Shareholders Maximizing ROI on investments Reach quarterly targets Private companies’ skills Service innovation Contact with end customers End customer billing Sales & Marketing Who would build to the farmer?

One open fiber to every home and Business! Broadband Networks are the Roads of the Future - Communities Should Build Them! One open fiber to every home and Business! Internet, TV, VOIP, tele health, security, smart city services, etc. + everyone else! This way a community can ensure the farmer is connected!

The Open Access Model is Like a Toll Road The Network Owner and Operator build and maintain the road. Everyone who wants to use it pay a toll fee More services sold on the network means higher revenue and faster payback (and happier subscribers!)

The Open Access Business Model Multiple ISPs on the same network compete for the end customers with quality and price of service Network Owner (community) Network Operator Subscribers Service Providers Network Operator (Owner) Fast Fiber Inc © 2011-2015, COS Systems, All Rights Reserved No 1 Fiber Inc The Toll Station!

Why is a Dark Fiber Lease Model NOT True Open Access? With a dark fiber lease model you don’t control the entire path to the end user, which means your future is in the hands of others

Comparison Between Dark Fiber Lease and Open Access One kind of Dark Fiber Lease model is where you lease the entire fiber to one service provider as a ”bit-pipe” Per-line pricing model Per-service pricing model Accessline E - Health VOD VOIP IPTV www Accessline bit-pipe bit-pipe Competitor Service bundle $10 + $15 + $20 + $5 + $15 = $65 / m VS. $40 / m + Easy No competition No control No additional revenue Smart city services? + Bigger assortment + Happier customers + Control + Higher ARPU! More complicated (?)

A Dark Open Fiber Ring Creates Local Monopolies With infrastructure investments needed there will not likely be any competition Who will build here, where there are few houses and far from backbone? = ISP C’s Middle Mile & Last Mile Network = ISP A’s Middle Mile & Last Mile Network = City Owned Fiber ring = ISP B’s Middle Mile & Last Mile Network

Open Access is the Foundation for Smart City Applications If you don’t control the infrastructure, how will the community or other entities deliver critical smart city applications of the future?

Who will invest in the infrastructure to reach these houses? Let’s Say You Want to Install Smart Electricity Meters, Streetlights or Other Smart City Services the Future Holds If you don’t control the middle and last mile you need agreements with multiple private companies - who might not consider the community benefit = ISP C’s Middle Mile & Last Mile Networks Who will invest in the infrastructure to reach these houses? = ISP A’s Middle Mile & Last Mile Networks = City Owned Backbone = ISP B’s Middle Mile & Last Mile Networks