Broadband Best Practices Summit Technet: San Jose, California June 29, 2007 Tad Deriso, General Manager (804) 855-4057 Virginia’s Broadband.

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Presentation transcript:

Broadband Best Practices Summit Technet: San Jose, California June 29, 2007 Tad Deriso, General Manager (804) Virginia’s Broadband Future

MBC Overview Idea formed in 2000 by local business leaders, Old Dominion Electric Cooperative and Virginia Tech Lack of advanced/affordable telecom infrastructure Desire for Private Sector to be key players in the project Transform the regional economy by creating a unique technology advantage

Problem to Solve? T-1 Dial-up ISDN DSL Cable Wireless 54k 128k 768k 1.5MB 2.0MB T-1 T-3 OC-3 OC-12 OC-48 OC mb 45mb 155mb 622mb 2.5gb 10gb Ethernet Services: 10MB…..10GB Residential/Small Business Carriers / Enterprise / Large Users

MBC Business Model Focus on the “Dumb” Pipe Don’t select last-mile winner/losers Private Sector participation Flat-Rate Wholesale Pricing Model Level the playing field for broadband services Metro Ethernet, TDM, Wavelength Services Willing to provide Dark Fiber

MBC Industrial Park Access Airpark 460

MBC Today Over $40 million in grant funding Regional network operational 4 th Qtr-’06 MBC offers wholesale services to Members (Telecom Service Providers) Efficient staffing & resources to operate carrier-class network FY07 revenues: $1M, FY08 proj: $1.4M

MBC Competitive Advantage Only rural region in the US with owned fiber and transport to Tier1 Data Locations 200Gbps System - Infinera Currently 36 Gigabits provisioned on MBC long- haul network Price Point Comparisons…

Solving the Backhaul Challenge Improving Contention Ratios for ISP’s Cost effective access for larger telecom service providers Transport & Internet Pricing Level Set TRANSPORT COSTINTERNET PORT COST Circuit TypeBefore MBC After MBC Before MBC After MBC DS1$500$250$800$300 DS3$5,000$1,500$6,000$3,000 10Mbps Ethernet N/A$400N/A$1,000 50Mbps Ethernet N/A$1,000N/A$1, Mbps Ethernet and Above N/A$1,500N/A$2,000

Equinix to SAIC Building Equinix to Northrup Grumman 50Mbps $2, Mbps $3, Mbps $5,820 1GigE $8,280 50Mbps $2, Mbps $3, Mbps $5,820 1GigE $8,280 50Mbps $2, Mbps $3, Mbps $5,560 1GigE $7,650 50Mbps $2, Mbps $3, Mbps $5,560 1GigE $7,650

Richmond POP to Data Center 50Mbps n/a 100Mbps $3, Mbps $5,905 1GigE $15,169 50Mbps n/a 100Mbps $3, Mbps $5,905 1GigE $15,169

Equinix to Danville - IALR 50Mbps $2, Mbps $2, Mbps $4,100 1GigE $6,300 50Mbps $2, Mbps $2, Mbps $4,100 1GigE $6,300

Monthly Metro Pricing Northern Virginia50Mbps100Mbps200Mbps1GigE Equinix – SAIC (Herndon)$2,420$3,380$5,820$8,280 Equinix – NGC (Reston)$2,564$3,264$5,560$7,650 Richmond, Virginia50Mbps100Mbps200Mbps1GigE Level(3) POP to Innsbrookn/a$3,477$5,905$15,169 Southside Virginia50Mbps100Mbps200Mbps1GigE Equinix – IALR Danville$2,025$2,700$4,100$6,300 (average price variance)(19%)(18%)(29%)(39%)

The Balanced Scorecard Financial Customer Internal Processes Jobs in Communities Vision and Strategy OBJMEASURETARGETSINIT. OBJMEASURETARGETSINIT. OBJMEASURETARGETSINIT. OBJMEASURETARGETSINIT.

The Most Important Sign that Rural Virginia is Open for Business and has Embraced the Technology Age…