1. Bringing Broadband to

2. What is broadband? High-speed fiber optic cable (also called fiber)
25 Mbps
1-3 Mbps
Mbps = megabits per second

3. .

4. Impact on house saleability
20% Less
Shutesbury, MA
Franklin County
Population: ~1800
Number of households: ~911
Total Land Area: 27.2 sq. miles
Average house price: $243,000

5. Impact on house saleability
$200,000
- $40,000
- $80,000

6. What’s wrong with DSL? And satellite?
1-3 Mbps

7. Is a municipal cooperative run by volunteers appointed by the member towns (It is not some big corporation whose only goal is to make money for shareholders )
Has worked diligently since its formation in 2011 to bring affordable, high-quality broadband to everyone in our towns and our region to benefit citizen stakeholders
Shutesbury is a member town and holds a seat on the board of directors and on the executive committee
Is now working to leverage $40 million in state funding to finally make this fiber optic network to homes and businesses a reality

9. Mass. Broadband Institute (MBI)
The Massachusetts Broadband Institute was formed in 2008 by the Patrick administration with the mission to “connect the unconnected”
Built the “middle mile” to CAI’s (Community Anchor Institutions): Schools, Town Halls, Libraries, Fire Stations, Police Stations, etc.
Is now partnering with WiredWest to build a regional fiber network to connect the “last mile”

10. Costs $0 $0 Million $122,992 0.58 Total Cost to Build Total Costs
MBI contribution
Prof Serv (Engineering)
Allocation
Net Cost
$0 Million
Debt Service at Year 6
$122,992
Based on 4%; 15 yrs.
Impact on Tax Rate
0.58

11. Financial models show that with a 40% take rate, WiredWest will be able to reimburse towns for their share of debt.
-$$
+$$

12. $0 Tax Impact House Value Tax Impact/mo. $150,000 $0 $243, 000
$300,000
$400,000 $0

13. Average current DSL expenses Average current satellite expenses
Tax Impact vs. Savings
House Value
Tax Impact/mo.
$243, 000 $0
Average current DSL expenses
Average current satellite expenses
Average potential future expenses
Phone
$55
$25
DSL Internet
(1-3 Mbps)
$35
Satellite Internet
$80
High-speed Fiber Optic Internet
(25 Mbps)
$49
Television
$90
$85
Max. Added Real Estate Tax $
TOTAL
$180
$225 $0
Household would SAVE
SATELLITE
$0 per year
DSL
*PLEASE NOTE TV PRICES NOT YET FINALIZED

14. Only borrow as needed Net Cost to
Total Cost to Build $0
MBI Contribution
-$0
Net Cost to
Year 1 (2015) Design and make ready work
Year 2 (2016) Construction
Year 3 (2017) Network live
Year 4 (2018) Complete
Year 5 (2019) Complete
Year 6 (2020) Long Term Bond Starts
Paid by grant money and short term loans
Revenue from subscription fees
$$$

15. Year 6 Tax Impact House Value Tax Impact/mo. $150,000 $243, 000 $0
Net Cost to Shutesbury
$0 Million
House Value
Tax Impact/mo.
$150,000
$243, 000 $0
$300,000
$400,000

16. Why a cooperative? It’s less expensive.
Regional solution offers economy of scale and shared resources and personnel
We don’t have the skills, talent, experience or time to go it alone.
We still own part of the network and maintain partial control.

17. Warrant Article 1
To see if the Town will vote to appropriate a sum of money not to exceed $1,693, for the Town’s share of the costs of the construction, installation and start-up of a regional high-speed broadband network, including the payment of all costs incidental or related thereto, such project to be carried out by the Town’s Municipal Light Plant acting as a member of a cooperative of such Plants formed under Chapter 164, Section 47C of the General Laws; to determine whether this appropriation shall be raised by borrowing contingent on debt excluded override or otherwise; or to take any other action relative thereto.

18. How to support the project
1. SIGN UP by sending in your deposit. Minimum 40% of town’s premises must pre subscribe for WiredWest services and make a refundable $49 deposit (to be applied to first month of service)
2. VOTE AT TOWN MEETING
A 2/3 pass vote at town meeting is needed to authorizing borrowing to fund our town’s costs.

19. Questions