Telecom Cost Analysis – Rev. 1 Pat Burns VP for IT 12/10/ Telecom Costs - IAC

FY 09 Monthly Cost for Basic Service CampusHousing Base monthly cost$11.13$12.90 Number of units7,5253,813 Annual Revenue$1,005,039$590,252 12/10/ Telecom Costs - IAC

12/10/ Telecom Costs - IAC

12/10/ Telecom Costs - IAC

12/10/ Telecom Costs - IAC

12/10/ Telecom Costs - IAC

12/10/ Telecom Costs - IAC

Project Categories Physical Infrastructure ▫Wide area networking – fiber and optical gear ▫Inter-campus fiber infrastructure - fiber ▫Inter-building infrastructure – fiber and copper ▫Building rewires Switch – SL-100 upgrades E911 – E911 phones, video surveillance cameras Futures – Unified Messaging, VoIP Equipment ▫Vehicles & cable trailer ▫Fiber splicers ▫Fiber OTDR ▫Copper testers, 6a ▫Operator consoles Other ▫Internet costs in FY02 ▫GSB shop remodel 12/10/2008Telecom Costs - IAC 8

12/10/ Telecom Costs - IAC

Project Details – Phys. Infra. FY ▫OIS Video $142,113 ▫AS-12 $47,000 ▫Clark $105,000 FY ▫Wagar $42,000 ▫Ayleswsorth $73,000 ▫Atmos Sci Sim Lab $6,313 ▫Weber $17,670 ▫UV Phase 5 $15,529 FY ▫OFCHS $25,507 ▫CIRA $13,273 ▫Chem Bio $5,188 ▫Industrial Science $1,162 ▫Weber AS.12 $3,000 FY (cont’d) - Fiber ▫Glover $3,019 ▫Green Hall $2,480 ▫ Foothills $6,615 ▫VTH $2,100 ▫Rampart/Overland $2,175 ▫Foothills $11,276 ▫NRRC $972 ▫NWRC $1,720 FY ▫ Tunnel Project $50,007 ▫Gugg/Chem-Bio/VTH $1,349 ▫Chem Bio $2,024 ▫VTH$5,000 ▫Foothills Generator $5,383 ▫AS.12 Projects $299,000 12/10/2008Telecom Costs - IAC 10

Project Details – Infrastructure (cont’d) FY ▫Housing $13,253 ▫Tunnel Project $44,288 ▫MRB CSUIITE $4,109 ▫ARBL to AIDL $11,890 ▫Aggie South $5,023 ▫AS.12 Projects $369,768 ▫CDOT $23,493 ▫Campus Fiber  Pitkin Ave $17,540  Centre Ave $15,917  Aggie North $5,209  Campus Ring $151,237 FY ▫CSU/UW fiber $185,000 ▫CSUIITE Projects $63,134 ▫ CDOT $31,027 ▫Tunnel Project $380 ▫Campus Fiber  Campus Ring $8,887  Misc.$27,199 FY ▫AS.12 Projects $15,680 ▫ Campus fiber  Hughes $2,007  Misc $116,273 12/10/2008Telecom Costs - IAC 11

Project Details – Infrastructure (cont’d) FY ▫CDOT $1,420 ▫ Campus fiber  Misc $59,921  555 S. Howes $8,119  Rampart Rd T$5,347  N. Lateral Loop $18,795  Pitkin Street $3,400  1500 UV$10,484 FY ▫CSUIITE $30,000 ▫CDOT $1,539 ▫Glover $16,828 ▫GSB $60,000 FY (cont’d) - fiber ▫Misc Fiber Projects $55,250 ▫ Overland Trail $47,309 ▫1500 UV$43,027 FY (budgeted) ▫CSUIITE $100,000 ▫Fiber Projects $150,000 ▫CDOT $30,000 ▫Adesta $215,000 12/10/2008Telecom Costs - IAC 12

FY 09 BS Cost Comparison with CSU Peers (All currently have revenue from Housing) Peer InstitutionBasic Serv. ($/mo.) Colorado State$11.13 Oklahoma State$17.50 Ohio State$17.65 Iowa State*$19.00 Michigan State*$20.50 Purdue$22.60 Univ. of Illinois, Urbana Cham.$22.60 Oregon State*$23.00 Univ. of Colo., Boulder*$23.89 Washington State*$25.00 Univ. of Calif., Davis$26.50 N. Carolina State*$ /10/ Telecom Costs - IAC * Includes Voice Mail

FY 09 BS+VM Cost Comparison with Peers (All currently have revenue from Housing) Peer InstitutionBasic Serv. + VM ($/mo.) Colorado State$17.13 Iowa State*$19.00 Michigan State*$20.50 Oklahoma State$22.50 Oregon State*$23.00 Univ. of Colo., Boulder*$23.89 Ohio State$24.15 Washington State*$25.00 Univ. of Illinois, Urbana Cham.$26.60 Purdue$27.10 Univ. of Calif., Davis$29.50 N. Carolina State*$ /10/ Telecom Costs - IAC

Perspective – Most Successful Activities AS.12 building rewires On-campus fiber: buildings, backbone Off-campus fiber: inter-campus, WAN Optical networking ▫BiSON ring at multi Gbps In a nearly cost neutral manner, the campus has been provided ▫Excellent physical infrastructure ▫Excellent Internet access While maintaining the lowest basic service costs among all of our peers, with no additional funding! 12/10/ Telecom Costs - IAC

FY 10 Scenarios Scenario A: Housing eliminates room phones ▫Loss in revenue = $590,252 Scenario B: Housing retains ‘emergency’ phones in rooms ▫At $6 per month for 9 months = $205,902/yr. ▫Loss in revenue = $384,350 The following scenarios assume we eliminate the aforementioned telecom projects progressively 12/10/ Telecom Costs - IAC

Scenario A: No Phones in Housing (Cumulative Cost Reductions) MonthlyNet Base (revenue neutral)$ Phys. Infra.$3.17$ Switch$1.31$ E911$0.35$ Futures$0.33$ Equip.$0.21$ Other$0.20$ /10/ Telecom Costs - IAC

Scenario B: ‘Emergency’ Phones in Housing MonthlyNet Base (revenue neutral)$ Phys. Infra.$3.17$ Switch$1.31$ E911$0.35$ Futures$0.33$ Equip.$0.21$ Other$0.20$ /10/ Telecom Costs - IAC

Discussion of Scenarios A and B Scenario A – range for monthly cost increase ▫Max = $ $11.13 = $7.64 ▫Min = $ $11.13 = $2.07 Scenario B – range for monthly cost increase ▫Max = $ $11.13 = $5.36 ▫Min = $ $11.13 = $0.79 Question – what do we value, and what do we agree to fund? 12/10/2008Telecom Costs - IAC 19

Upcoming Transition Costs Telephone switch end of life in 2011 In 1993, costs for current telecom infrastructure ▫Switch cost = $3.0 million  Enhanced to keep $2.5 million ▫Octel VM system cost = $1.5 million ▫Underground copper cost = $3.5 million (Qwest) 1-time costs for VoIP may be ~$3-5 million ▫‘Hardening’ the network ▫Backbone switch upgrade ▫Adding UPSs and POE in the closets ▫May be otherwise funded – consider separately? ▫TBD in FY /10/ Telecom Costs - IAC

Discussion How do we fund ▫Wide area fiber and equipment ▫Physical IT infrastructure upgrades ▫Hardening the existing network Transition to integrated VoIP system or maintain analog phones? ▫Adding VoIP infrastructure  Power over Ethernet  UPS  End user devices  Aggregate VoIP infrastructure 12/10/2008Telecom Costs - IAC 21

Consequences Item to be EliminatedConsequence Phys. Infra. - $3.17/mo.Reduced ability to maintain IT physical infrastructure, both on and off campus Switch - $1.31/mo.Transitional funding E911 - $0.35/m.Liability and safety Futures - $0.33/mo.How do we effect a transition to VoIP? Equipment - $0.21/mo.Reduced ability to maintain infrastructure Other - $0.20/mo.Reduced capacity to respond to immediate events 12/10/ Telecom Costs - IAC

Recommendations Maintain $0.89/mo. Maintain at full amounts: Redirect into VoIP portions of $4.77/mo.? ▫‘Phys. $3.11/mo. $0.33/mo. $1.31/mo. Eliminate ‘ $0.20/mo. Reduce VM/UM costs by ~$1/mo. 12/10/ Telecom Costs - IAC