1. Massachusetts Telecommunications Symposium Massachusetts Telecommunications Symposium Small Cable System Thrives Shrewsbury Electric and Cable Operations Thomas Josie July 26, 2004

2. 07/26/04 Page - 2 Conclusion n Municipal entities can successfully build/own/operate “State of the Art Broadband System” n Rates and services are competitive with industry n Financial return to Town, ancillary benefits, and Municipal Fiber Network surpasses alternatives. * (SELCO is an incumbent operator without competition)

3. 07/26/04 Page - 3 What We Offer n Traditional Analog & Digital Cable Services n HD TV n Personal Video Remote (PVR) Services n Video On Demand n Broadband Internet - Residential/Business Services n Municipal Fiber Network

4. 07/26/04 Page - 4 n Phones, Voice Mail – For Town Government, Schools, SELCO n Internet Service – Town Government, Schools n Data Network – All Municipal Buildings n Video Between Buildings n PEG use for Remote Shoots n Public Safety - Radio Repeaters Municipal Fiber Network

5. 07/26/04 Page - 5 Value Added to Community n Lower Rates for Video Services  Customers Save $2M Annually n Local Control  Excellent Relationship with Issuing Authority n Financial Benefits to Town  5% of all Revenue (Including Internet)  3% for Public, Education, Government Access

6. 07/26/04 Page - 6 Value Added to Community n Superior Customer Service  One-Stop Shopping - Offices in the Town Hall n Municipal Fiber Network  Joint Operating Committee Town, School, SELCO n Town Website  www.Shrewsbury-MA.gov

7. 07/26/04 Page - 7 Keys to Success n Apply business/investment principles n Know Your Market – Keep it Local n Offer Competitive Services – Technology & Price n Integrate with Community – Schools, PEG Access, Local Businesses, Town Government n Customer Service – Keep Control! n Use Proven Technology

8. 07/26/04 Page - 8 Vitals Homes Passed13,900 Basic Subs11,870 (85% Penetration) Internet Customers5,735 (41% Penetration) Miles of Plant190 mi System ArchitectureHFC 860 MHZ 250 Homes/Node Annual Revenue (2003)$7.6 M

9. 07/26/04 Page - 9 Vitals - Rates Expanded Basic (72 ch.)$30.55* Digital, Expanded Basic Converter, VOD, Music, PPV (153+ ch.) $42.50* Premium (HBO)$10.95* *No extra Taxes or Fees

10. 07/26/04 Page - 10 Policy to Ponder Who Should Control Essential Municipal Infrastructure? -Thanks for Listening