Broadband for Louisa County Building the Future

How Rural is Louisa? Louisa County  34,000 residents  14,000 households  511 square miles  Density outside of population centers: < 60 residents per square mile Fairfax County  1.1 million residents  400,000 households  406 square miles  Population density:  2,750 residents per square mile

Broadband Research and Planning  Possible business models:  Possible broadband distribution technologies:  Fiber optic cable (in-ground or aerial)  Wireless distribution options  Existing telephone and cable TV cabling  New coaxial cabling  Power lines  Fiber optic cable (in-ground or aerial)  Wireless distribution options  Existing telephone and cable TV cabling  New coaxial cabling  Power lines  Passive investor  Infrastructure provider  Direct service provider  Passive investor  Infrastructure provider  Direct service provider

Broadband Research and Planning  Possible broadband distribution technologies:  Fiber optic cable (in-ground or aerial)  Wireless distribution options  Possible business models:  Infrastructure provider  Possible broadband distribution technologies:  Fiber optic cable (in-ground or aerial)  Wireless distribution options  Possible business models:  Infrastructure provider

Fiber and Wireless Fiber  Technological lifetime: 30 years  Data capacity: very large (>10,000 Mbps)  Middle-mile cost: $15,000 - $65,000/mile  Last-mile cost: very high (linear) Wireless  Technological lifetime: 5 years  Data capacity: large (300-1,000 Mbps)  Middle-mile cost: $1,000/mile  Last-mile cost: low (non-linear)

Potential Partners  Federal Grants (FCC, Senator Warner, etc.)  State Grants (VHDA, DHCD, etc.)  Private Grants  Commercial Firms  Federal Grants (FCC, Senator Warner, etc.)  State Grants (VHDA, DHCD, etc.)  Private Grants  Commercial Firms

Louisa Must Build Phase One Universal feedback from Federal, State, and Private entities

What is Phase One?  Ten distribution towers:  180’ height  Power  Network equipment  Up to 10 vertical locations  Downlink capability for wireline  3-mile local service radius  Distribution service to local towers beyond 3 miles  180’ height  Power  Network equipment  Up to 10 vertical locations  Downlink capability for wireline  3-mile local service radius  Distribution service to local towers beyond 3 miles  Middle-mile transport service:  300 Mbps initial capacity  Expandable to 1,000 Mbps  300 Mbps initial capacity  Expandable to 1,000 Mbps

Direct Return on Investment  Direct revenues  Minimal returns for co-location on towers  Small returns for transport service  Adequate to offset continued maintenance and operation  Does not provide a direct investment return to Louisa County  Direct revenues  Minimal returns for co-location on towers  Small returns for transport service  Adequate to offset continued maintenance and operation  Does not provide a direct investment return to Louisa County

Indirect Return on Investment  Rural Louisa does not have Internet service  Reduced desirability for prospective residents and businesses  Loss of educational, commercial, and job opportunities for citizens  Internet analogous to roads - 21 st century distribution  Electronic textbooks  B2B and B2C transactions  Telecommuting  Citizen engagement  Rural Louisa does not have Internet service  Reduced desirability for prospective residents and businesses  Loss of educational, commercial, and job opportunities for citizens  Internet analogous to roads - 21 st century distribution  Electronic textbooks  B2B and B2C transactions  Telecommuting  Citizen engagement

Phase One Costs $1.1 million Capital Expense for construction

Phase One Projections  Projected Annual Operational Expenses: $53,000  Projected Annual Revenues: $45,000 - $60,000  Projected Annual Operational Expenses: $53,000  Projected Annual Revenues: $45,000 - $60,000

Phase One Bottom Line  Wireless backhaul and lease revenues will not return the initial infrastructure investment to Louisa County

What about LCPS fiber?  Louisa County Public Schools have requested federal funding for fiber construction between schools.  If approved, LCBA could include fiber in their construction at a greatly-reduced cost.  However, all construction costs associated with Phase One remain for last-mile distribution to consumers.  Therefore, we do not consider fiber backhaul deployment a critical- path Phase One step.  Louisa County Public Schools have requested federal funding for fiber construction between schools.  If approved, LCBA could include fiber in their construction at a greatly-reduced cost.  However, all construction costs associated with Phase One remain for last-mile distribution to consumers.  Therefore, we do not consider fiber backhaul deployment a critical- path Phase One step.

What is Phase Two?  Option I:  Wireless Provider Adoption: high  Wired Provider Adoption: some  Phase Two: Grant funding for fiber  Option II:  Wireless Provider Adoption: high  Wired Provider Adoption: none  Phase Two: Grant funding for fiber backhauls; use revenues to build local towers  Option I:  Wireless Provider Adoption: high  Wired Provider Adoption: some  Phase Two: Grant funding for fiber  Option II:  Wireless Provider Adoption: high  Wired Provider Adoption: none  Phase Two: Grant funding for fiber backhauls; use revenues to build local towers  Option III:  Wireless Provider Adoption: low  Wired Provider Adoption: none  Phase Two: Seek grants and public- private partnerships to increase wireless rollouts  Option IV:  Wireless Provider Adoption: minimal  Wired Provider Adoption: none  Phase Two: Seek grants and funding to provide service directly to residents and businesses in Louisa

What is Phase One?  Proof-of-Commitment for federal, state, and private grants  Middle-mile transport (backhaul) service from ten locations capable of blanketing Louisa County so that all residents can have access  Flexible technological solution that incorporates potential service expansion from LCPS efforts and private entities  Minimum Viable Investment Louisa County can make to reach Phase Two  Proof-of-Commitment for federal, state, and private grants  Middle-mile transport (backhaul) service from ten locations capable of blanketing Louisa County so that all residents can have access  Flexible technological solution that incorporates potential service expansion from LCPS efforts and private entities  Minimum Viable Investment Louisa County can make to reach Phase Two

Louisa County Broadband Authority  We plan to request Phase One funding of $1.1 million from the Louisa County Board of Supervisors.  Our charter is to increase access to broadband Internet for citizens of Louisa County.  Our goal today is to ensure that the Board of Supervisors has the information it needs to make a funding decision.  We plan to request Phase One funding of $1.1 million from the Louisa County Board of Supervisors.  Our charter is to increase access to broadband Internet for citizens of Louisa County.  Our goal today is to ensure that the Board of Supervisors has the information it needs to make a funding decision.