1. Telecom Cost Analysis – Rev. 1 Pat Burns VP for IT 12/10/2008 1 Telecom Costs - IAC

2. FY 09 Monthly Cost for Basic Service CampusHousing Base monthly cost$11.13$12.90 Number of units7,5253,813 Annual Revenue$1,005,039$590,252 12/10/2008 2 Telecom Costs - IAC

3. 12/10/2008 3 Telecom Costs - IAC

4. 12/10/2008 4 Telecom Costs - IAC

5. 12/10/2008 5 Telecom Costs - IAC

6. 12/10/2008 6 Telecom Costs - IAC

7. 12/10/2008 7 Telecom Costs - IAC

8. Project Categories Physical Infrastructure ▫Wide area networking – fiber and optical gear ▫Inter-campus fiber infrastructure - fiber ▫Inter-building infrastructure – fiber and copper ▫Building rewires Switch – SL-100 upgrades E911 – E911 phones, video surveillance cameras Futures – Unified Messaging, VoIP Equipment ▫Vehicles & cable trailer ▫Fiber splicers ▫Fiber OTDR ▫Copper testers, 6a ▫Operator consoles Other ▫Internet costs in FY02 ▫GSB shop remodel 12/10/2008Telecom Costs - IAC 8

9. 12/10/2008 9 Telecom Costs - IAC

10. Project Details – Phys. Infra. FY 99-00 ▫OIS Video $142,113 ▫AS-12 $47,000 ▫Clark $105,000 FY 00-01 ▫Wagar $42,000 ▫Ayleswsorth $73,000 ▫Atmos Sci Sim Lab $6,313 ▫Weber $17,670 ▫UV Phase 5 $15,529 FY 01-02 ▫OFCHS $25,507 ▫CIRA $13,273 ▫Chem Bio $5,188 ▫Industrial Science $1,162 ▫Weber AS.12 $3,000 FY 01-02 (cont’d) - Fiber ▫Glover $3,019 ▫Green Hall $2,480 ▫ Foothills $6,615 ▫VTH $2,100 ▫Rampart/Overland $2,175 ▫Foothills $11,276 ▫NRRC $972 ▫NWRC $1,720 FY 02-03 ▫ Tunnel Project $50,007 ▫Gugg/Chem-Bio/VTH $1,349 ▫Chem Bio $2,024 ▫VTH$5,000 ▫Foothills Generator $5,383 ▫AS.12 Projects $299,000 12/10/2008Telecom Costs - IAC 10

11. Project Details – Infrastructure (cont’d) FY 03-04 ▫Housing $13,253 ▫Tunnel Project $44,288 ▫MRB CSUIITE $4,109 ▫ARBL to AIDL $11,890 ▫Aggie South $5,023 ▫AS.12 Projects $369,768 ▫CDOT $23,493 ▫Campus Fiber  Pitkin Ave $17,540  Centre Ave $15,917  Aggie North $5,209  Campus Ring $151,237 FY 04-05 ▫CSU/UW fiber $185,000 ▫CSUIITE Projects $63,134 ▫ CDOT $31,027 ▫Tunnel Project $380 ▫Campus Fiber  Campus Ring $8,887  Misc.$27,199 FY 05-06 ▫AS.12 Projects $15,680 ▫ Campus fiber  Hughes $2,007  Misc $116,273 12/10/2008Telecom Costs - IAC 11

12. Project Details – Infrastructure (cont’d) FY 06-07 ▫CDOT $1,420 ▫ Campus fiber  Misc $59,921  555 S. Howes $8,119  Rampart Rd T$5,347  N. Lateral Loop $18,795  Pitkin Street $3,400  1500 UV$10,484 FY 07-08 ▫CSUIITE $30,000 ▫CDOT $1,539 ▫Glover $16,828 ▫GSB $60,000 FY 07-08 (cont’d) - fiber ▫Misc Fiber Projects $55,250 ▫ Overland Trail $47,309 ▫1500 UV$43,027 FY 08-09 (budgeted) ▫CSUIITE $100,000 ▫Fiber Projects $150,000 ▫CDOT $30,000 ▫Adesta $215,000 12/10/2008Telecom Costs - IAC 12

13. FY 09 BS Cost Comparison with CSU Peers (All currently have revenue from Housing) Peer InstitutionBasic Serv. ($/mo.) Colorado State$11.13 Oklahoma State$17.50 Ohio State$17.65 Iowa State*$19.00 Michigan State*$20.50 Purdue$22.60 Univ. of Illinois, Urbana Cham.$22.60 Oregon State*$23.00 Univ. of Colo., Boulder*$23.89 Washington State*$25.00 Univ. of Calif., Davis$26.50 N. Carolina State*$34.00 12/10/2008 13 Telecom Costs - IAC * Includes Voice Mail

14. FY 09 BS+VM Cost Comparison with Peers (All currently have revenue from Housing) Peer InstitutionBasic Serv. + VM ($/mo.) Colorado State$17.13 Iowa State*$19.00 Michigan State*$20.50 Oklahoma State$22.50 Oregon State*$23.00 Univ. of Colo., Boulder*$23.89 Ohio State$24.15 Washington State*$25.00 Univ. of Illinois, Urbana Cham.$26.60 Purdue$27.10 Univ. of Calif., Davis$29.50 N. Carolina State*$34.00 12/10/2008 14 Telecom Costs - IAC

15. Perspective – Most Successful Activities AS.12 building rewires On-campus fiber: buildings, backbone Off-campus fiber: inter-campus, WAN Optical networking ▫BiSON ring at multi Gbps In a nearly cost neutral manner, the campus has been provided ▫Excellent physical infrastructure ▫Excellent Internet access While maintaining the lowest basic service costs among all of our peers, with no additional funding! 12/10/2008 15 Telecom Costs - IAC

16. FY 10 Scenarios Scenario A: Housing eliminates room phones ▫Loss in revenue = $590,252 Scenario B: Housing retains ‘emergency’ phones in rooms ▫At $6 per month for 9 months = $205,902/yr. ▫Loss in revenue = $384,350 The following scenarios assume we eliminate the aforementioned telecom projects progressively 12/10/2008 16 Telecom Costs - IAC

17. Scenario A: No Phones in Housing (Cumulative Cost Reductions) MonthlyNet Base (revenue neutral)$18.77 - Phys. Infra.$3.17$15.60 - Switch$1.31$14.29 - E911$0.35$13.94 - Futures$0.33$13.61 - Equip.$0.21$13.40 - Other$0.20$13.20 12/10/2008 17 Telecom Costs - IAC

18. Scenario B: ‘Emergency’ Phones in Housing MonthlyNet Base (revenue neutral)$16.49 - Phys. Infra.$3.17$13.32 - Switch$1.31$12.01 - E911$0.35$11.66 - Futures$0.33$11.33 - Equip.$0.21$11.12 - Other$0.20$10.92 12/10/2008 18 Telecom Costs - IAC

19. Discussion of Scenarios A and B Scenario A – range for monthly cost increase ▫Max = $18.77 - $11.13 = $7.64 ▫Min = $13.20 - $11.13 = $2.07 Scenario B – range for monthly cost increase ▫Max = $16.49 - $11.13 = $5.36 ▫Min = $11.92 - $11.13 = $0.79 Question – what do we value, and what do we agree to fund? 12/10/2008Telecom Costs - IAC 19

20. Upcoming Transition Costs Telephone switch end of life in 2011 In 1993, costs for current telecom infrastructure ▫Switch cost = $3.0 million  Enhanced to keep current @ $2.5 million ▫Octel VM system cost = $1.5 million ▫Underground copper cost = $3.5 million (Qwest) 1-time costs for VoIP may be ~$3-5 million ▫‘Hardening’ the network ▫Backbone switch upgrade ▫Adding UPSs and POE in the closets ▫May be otherwise funded – consider separately? ▫TBD in FY 2010 12/10/2008 20 Telecom Costs - IAC

21. Discussion How do we fund ▫Wide area fiber and equipment ▫Physical IT infrastructure upgrades ▫Hardening the existing network Transition to integrated VoIP system or maintain analog phones? ▫Adding VoIP infrastructure  Power over Ethernet  UPS  End user devices  Aggregate VoIP infrastructure 12/10/2008Telecom Costs - IAC 21

22. Consequences Item to be EliminatedConsequence Phys. Infra. - $3.17/mo.Reduced ability to maintain IT physical infrastructure, both on and off campus Switch - $1.31/mo.Transitional funding E911 - $0.35/m.Liability and safety Futures - $0.33/mo.How do we effect a transition to VoIP? Equipment - $0.21/mo.Reduced ability to maintain infrastructure Other - $0.20/mo.Reduced capacity to respond to immediate events 12/10/2008 22 Telecom Costs - IAC

23. Recommendations Maintain operators @ $0.89/mo. Maintain at full amounts: ▫‘E911’ @$0.35/mo. ▫‘Equipment’ @$0.21/mo. Redirect into VoIP portions of $4.77/mo.? ▫‘Phys. Infra.’ @ $3.11/mo. ▫‘Futures’ @ $0.33/mo. ▫‘Switch’ @ $1.31/mo. Eliminate ‘ Other’ @ $0.20/mo. Reduce VM/UM costs by ~$1/mo. 12/10/2008 23 Telecom Costs - IAC