1. VACO ANNUAL CONFERENCE Wired Road Broadband Authority
OCTOBER 9, 2009
Mike Maynard, Chairman
Wired Road Broadband Authority

2. PROJECT PROFILE
Virginia's first community owned, open access, fully integrated fiber and wireless regional broadband network.
Established in January 2008; operational since July 2008 for government customers. Residential and business customers began using the network in April 2009.
A true public/private partnership, with 100% private service providers; local government and the Authority do NOT sell any services and do not compete with the private sector providers.
The Wired Road is incumbent friendly. All incumbent providers have been invited to use the network to sell fiber-delivered services to new and existing customers using Wired Road infrastructure.
The Wired Road service area is unserved and underserved with only 25% broadband access in region.
The Wired Road infrastructure is a critical enabler of a regional economic development strategy focused on small businesses and entrepreneurs.

3. BUSINESS MODEL
Community owned network, supported by private service providers.
Revenue share with service providers supports network build out, operation, and maintenance.
Cash flow positive after Yr 1.
Revenue share to regional econ dev and local governments total $6.4MM Yr 5-10

4. FUNDING Total project cost will be approximately $40MM
Funding committed to date is approximately $5.1MM- local governments, state and federal agencies. Deployed to date- $1.1MM
Submitted stimulus application for $16MM
Revenue share from service providers (assumes stimulus grant) is $7.7MM ending 2011, growing to $43MM after ten years. Excluding stimulus, revenue is $2.7MM ending 2011, and grows to $12.7MM at ten years.

5. LEADERSHIP/POLITICAL ISSUES
Has to be supportive of economic development strategy.
Requires different skill sets for Broadband Authority members- not your average appointment.
Absolutely must have a champion.
Regional approach is critical to developing sufficient market.
Several constituent groups requires robust communication effort- local government, citizens, early adopters, state/federal partners.

6. LESSONS LEARNED/ RESULTS TO DATE
Takes much longer than planned.
Service providers need hand holding.
Minimize operating excpenses.
Manage expectations.
Results To Date
Multiple service providers- 2 operating, and 2 in final negotiations.
Connectivity provided to local schools, hospitals, and government offices.
Backlog of residential and business customers.
Prices have dropped by as much as 70%