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Page 1 Jim Martin CEO & President, Citynet, LLC Mike Friloux SVP Business Development, Citynet, LLC One Goal, One Mission, One Cause To Support and Advocate for Proactive Broadband PolicyTo Support and Advocate for Proactive Broadband Policy Critical for West Virginia’s Economic FutureCritical for West Virginia’s Economic Future Critical for Job Creation & Competing in the 21 st CenturyCritical for Job Creation & Competing in the 21 st Century Critical for Public Safety, Education and Social WelfareCritical for Public Safety, Education and Social Welfare We can turn a disadvantage into an advantage, the digital economy isn’t going to wait on West Virginia. We must embrace proactive policies that work! West Virginia BROADBAND INFRASTRUCTURE
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Page 2 West Virginia BROADBAND INFRASTRUCTURE West Virginia’s Broadband Challenge 1.West Virginia Ranks 48 th in Broadband 2.We know what does not work (see item 1) 3.Transport Capacity Cost 20 to 30x vs. Enabled Markets 4.High costs prohibit expansion to rural markets. 5.High costs prohibit performance for enabled markets. 6.Why? And How do we fix it. How do we solve the problem? West Virginia must adopt progressive policies that work, the status quo is not the answer.
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Page 3 West Virginia BROADBAND INFRASTRUCTURE Middle Mile State Broadband System Unlocks Hundreds of Rural Communities Provides High-Capacity Fiber Systems Provides Affordable Solutions Extends Internet Backbone into WV Data Super Highway System 100% Open Access Grows Denser with Time Virginia Ohio Pennsylvania Are doing just this! And they rank higher then WV! Why?
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Page 4 West Virginia BROADBAND INFRASTRUCTURE Core System Future Vision Sustainable Anchor: Provides Reinvestment Provides Growth Long-term Enablement Benefits Everyone We must establish the sustainable anchor and visualize the future with a proven model of enablement.
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Page 5 Middle Mile Solutions Work SUCCESS FACTORS Core Middle Mile System(achieves economies of scale) Core Middle Mile System(achieves economies of scale) Federal or State Funding(removes economic cost barriers) Federal or State Funding(removes economic cost barriers) Affordable Pricing(enabled by Federal or State Funding) Affordable Pricing(enabled by Federal or State Funding) Sustainable Economic Plan (system self funds its own growth) Sustainable Economic Plan (system self funds its own growth) Complete Service Suite(diverse services for diverse needs) Complete Service Suite(diverse services for diverse needs) Equal & Open Access to All(equal terms and pricing for all users) Equal & Open Access to All(equal terms and pricing for all users) KEY BENEFITS Reduces Transport Costs by 90% Unlocks Affordable Access for hundreds of Rural Communities Stimulates Competition, Choice, Advanced Service Offerings Delivers 100% Open Access – A Shared Data Superhighway All Benefits Flow to End-Users – More Options, Lower Costs, Better Services West Virginia BROADBAND INFRASTRUCTURE
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Page 6 West Virginia BROADBAND INFRASTRUCTURE State Plan Bottom Line - Projected / Estimated Impact Average State Agency Service Fee – Monthly$ 2,000 (estimated) Number of State Agencies 1,064 Total New Monthly Revenue$ 2,128,000 Total New Annual Revenue$ 25,536,000 Taxpayer New Annual Bill$ 25,536,000 Taxpayer Return on Investment - 37% Annually Taxpayer Benefits Received Zero* Households Enabled Zero* Businesses Enabled Zero* How is this good for the citizens or businesses of West Virginia? Why wouldn’t Frontier invest their own money to earn 37% annual return? Is this a “Model Plan”? * Verified by the NTIA and State Grant - Estimates based on best available information.
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Page 7 West Virginia BROADBAND INFRASTRUCTURE Broadband is Critical to the Economic and Social Future of WV Broadband expansion cannot occur without a Competitive Middle Mile Solution West Virginia’s Broadband Future is a Choice Middle Mile Proven Solution That Works Durable Long-term Infrastructure Resolves Transport Cost Issue Maximizes Broadband Enablement Last Mile Isolated & Limited Fiber Builds Minimal Benefits Avoids root issue Only benefits State Agencies
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Page 8 West Virginia BROADBAND INFRASTRUCTURE Jim Martin President & CEO Citynet, LLC 304.848.5412 jim.martin@citynet.net www.westvirginia.com
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