A MUNICIPAL TELECOMMUNICATIONS DEPLOYMENT APPA Community Broadband Conference San Francisco, CA October 2004

OptiNet Backbone Network Voice/Data Backbone is built on multiple 2.5 Gbps self-healing resilient packet rings (RPR) Rings are physically diverse between the six (6) primary PoPs in Bristol and Abingdon, Virginia Rings boast a recovery time of 50 milliseconds for fiber breaks or other optical signal loss. –Necessary in the voice business

OptiNet Access Network OptiNet access networks consist of two (2) architectures: –Passive Optical Network (PON) –Point-to-Point Ethernet PON enables very efficient and relatively low cost deployment of Fiber-to-the-User (FTTU) PON allows for a single fiber to be split passively up to 32 times and uses wave division multiplexing (WDM) to carry three wavelengths for data transmit/receive and video broadcast. PONs are ideal for serving general voice, data, and CATV access requirements to business and residential customers.

Operational Considerations! OSP –Customer Service Representatives Orders are taken into the billing system Activation scheduling Moves/Adds/Changes –Engineering Residential Commercial –Pre-engineering information sheets –Fiber Install & Splicing In-house or contract Equipment purchases or leases Crew size

Operational Considerations! OSP –ONT Installation Overhead/UG Splicing 3 Installs/day/man –Provisioning ONT Number porting issues New number Data services –Service Activations Inside wiring issues Battery installations Settop box installs 3 Activations/day/man

How To Make It Work and Pay? Let’s Follow the Flow –Customer Contacts a CSR Credit check is processed immediately Service order is created in the billing system –Service order is sent to Engineering for assignment Network Technician identifies physical plant facilities –Aerial/UG –NAP Information

How To Make It Work and Pay? Operations Manager schedules ONT installation –Fiber management is documented OSP crew installs ONT and splicer completes work assignment at the NAP and at the ONT –Drop is patched at the Convergence Cabinet (LCC) –Power output is recorded All documentation returns to NOC for provisioning After provisioning, service order is returned to CSR for activation scheduling. Activation is scheduled through a work force management system

How To Make It Work and Pay? Voice provisioning has been initiated, if necessary, and ports are in the system for scheduling by the incumbent Activation crew arrives at customer site on scheduled date and installs battery, any necessary inside wiring, and turns up all ordered services Activation crew verifies all services on and leaves another happy customer Service order returns to Order Manager for review and service order goes to billing Customer is billed and OptiNet is very happy!

Maintenance Considerations OSP –Unscheduled Fiber breaks ONT damage Tree trimming –Scheduled Software upgrades –Maintenance window »2 A.M. to 6 A.M.

Maintenance Considerations Customer Premise Trouble –NOC generates/clears all trouble tickets No dial tone Feature problems CATV problems Data problems Install issues 65-70% problem resolution

Marketing Marketing Manager –Responsible for all marketing and advertising Brochures Price Lists Advertising –Print, radio and televison Ad insertions –Cross channel advertising –4 channels Focus groups

Marketing Billing system gathers marketing statistics Weekly updates of customer activity Reports are crucial

Product Enhancements LD Packages Telephone features Internet download/upload speeds HDTV DVRs for Analog/Digital customers Home networking –HPNA –Wireless

New Products Premise Security –Commercial/Residential Content Applications –Games –Music VOD –FVOD –SVOD Disaster Recovery –Hot and cold sites

Success Indicators Market Penetration Revenues Product take-rates Churn Customer Response Requests for service extensions

FCC Requirements Voice –Federal Registration Number CORES Registration Form –Designation of Agent for Service Process –214 Application for International Authority –Interstate switched access tariff –USF Forms 498 and 499Q –Telecommunications Slamming Complaint Report

FCC Requirements CATV –Registration to operate CATV system Incorporated towns –Signal leakage reporting

Would We Do It Again? YES A positive for the community –Customers have been the winners Keeps competitors on their toes A strong economic development tool Opened doors for other communities

How Is OptiNet Doing? OptiNet passes approximately 10,000 commercial and residential customers We have over 5,000 FTTH & FTTB customers and over 5,900 total customers including dial-up OptiNet met and surpassed year-end revenue and customer goals

How Is OptiNet Doing? 4543 Telephone customers –6557 access lines –175 pending 4264 CATV customers –29% digital penetration –150 pending 2699 Data customers –Better than 50% of customers take Internet –81 pending

How Is OptiNet Doing? 854 Dial-up customers 73% Feature package penetration 71% Penetration on long distance $565,000 Annual Revenue