developer, municipal & utility technology planning
TRANSCRIPT
Developer, Municipal & Utility Technology Planning
THE BROADBAND GROUPNathan Vineyard-Director of
EngineeringPresented | Spring 2009 Dallas,
Texas
THE BROADBAND GROUP THE BROADBAND GROUP
Focused on creating and managing Connected Communities
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BROADBAND AFFILIATIONS & ASSOCIATIONSBROADBAND AFFILIATIONS & ASSOCIATIONS
URBAN LAND INSTITUTEUS BROADBAND COALITION U.S. CONFERENCE
OF MAYORS
THE BROADBAND COMPANIESTHE BROADBAND COMPANIES
BROADBAND VENTURES, LLC BROADBAND VENTURES, LLC
THE BROADBAND GROUP
BROAVADA COMMUNICATIONS, LLC
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OVERVIEWOVERVIEW
A COMPREHENSIVE APPROACH TO A TECHNOLOGY MASTER PLAN
TM
Broadband Infrastructure Community Options Network Specifications Hybrid Fiber Coax vs. Fiber to
the Premise (FTTP) Cost vs. Bandwidth vs. Capacity Regulatory Review & Planning
Additional Services Utility
Management/AMI Community
Network/Portal Wireless Capability IP Enabled Security Irrigation Controls
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Integrated Financial Modeling to Support Clients’ Needs:
FINANCIAL MODELINGFINANCIAL MODELING
• Industry Due Diligence • Service Provider Co-Marketing Deal Analysis• Negotiation Support• Investment Grade Financials• Broadband Entity Types:
o New Services/Applications o Full Service Providero Transporto Cooperative (Coop)
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Detailed StatementsAbsorptions SchedulesOperations (Revenues & Expenses)General and Administrative CostsFinancingCapital ExpendituresDepreciation
Detailed Statements
feed into Summary
Statements
Summary StatementsIncome StatementCash Flow StatementsBalance SheetValuations
Income Statement 2008 2009 2010 2011 2012 2013Revenues $30,590 $334,624 $1,302,211 $3,044,859 $5,410,375 $8,170,490Cost of Sales $9,119 $182,725 $633,827 $1,424,246 $2,479,291 $3,667,260G&A $346,115 $700,200 $760,580 $842,623 $938,729 $1,170,289EBITDA $324,644 $548,301 $92,197 $777,990 $1,992,355 $3,332,941Depreciation $176,132 $384,478 $472,085 $607,627 $774,878 $935,297EBIT $500,776 $932,778 $564,281 $170,363 $1,217,477 $2,397,645Interest Not ApplicableTaxes (@40%) $0 $0 $0 $68,145 $486,991 $959,058Net Income $500,776 $932,778 $564,281 $102,218 $730,486 $1,438,587
Cash Flow StatementNet Income $500,776 $932,778 $564,281 $102,218 $730,486 $1,438,587Add: Depreciation & Amortization $176,132 $384,478 $472,085 $607,627 $774,878 $935,297Operating Cash Flows $324,644 $548,301 $92,197 $709,845 $1,505,364 $2,373,884
Less: Total Capital Expenditures $3,515,229 $517,636 $726,012 $964,672 $1,122,935 $1,298,474
Total Cash From Investing $3,515,229 $517,636 $726,012 $964,672 $1,122,935 $1,298,474
Debt (Not Considered)
SummaryTotal Increase/Decrease of Cash $3,839,874 $1,065,936 $818,208 $254,827 $382,429 $1,075,410Cash at Beginning of Year $0 $160,126 $1,094,190 $275,982 $21,155 $403,584
Cash Contributed as Equity Investment [1] $4,000,000 $2,000,000
Cash at End of the Year $160,126 $1,094,190 $275,982 $21,155 $403,584 $1,478,993[1] Suggested Yearly Cash Calls to sustain positive cash flows. Input Suggested cash call amount per year.
Balance SheetCash & Equivalents $160,126 $1,094,190 $275,982 $21,155 $403,584 $1,478,993PP&E Net of Depreciation $3,339,098 $3,472,256 $3,726,183 $4,083,228 $4,431,285 $4,794,462
Total Assets $3,499,224 $4,566,446 $4,002,164 $4,104,382 $4,834,868 $6,273,455
Current Portion of Long-Term Debt Not ApplicableLong Term Debt
Total Liabilities
Comprehensive (Accumulated) LossEquity[1] $4,000,000 $6,000,000 $6,000,000 $6,000,000 $6,000,000 $6,000,000Retained Earnings $500,776 $1,433,554 $1,997,836 $1,895,618 $1,165,132 $273,455
Total Equity $3,499,224 $4,566,446 $4,002,164 $4,104,382 $4,834,868 $6,273,455[1] Based on estimated cash investment; "cash contributed as equity investment," contained in Cash Flow Stmt.Total Liabilities + Equity $3,499,224 $4,566,446 $4,002,164 $4,104,382 $4,834,868 $6,273,455
Note: All Statements presented are for conceptual purposes, not actual numbers.
Operations 2008 2009 2010 2011 2012 2013
Revenues
VideoLimited BasicPrice to Customer $14.49 $14.49 $14.49 $14.49 $14.49 $14.49Time Value Percentage (Growth) 0.0% 4.0% 4.0% 4.0% 4.0% 4.0%Time Value Multiplier 1.00 1.04 1.08 1.12 1.17 1.22Penetration 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%Total Revenue to Limited Basic $1,391 $29,295 $118,201 $278,131 $490,942 $739,267
Expanded BasicAdded Price to Customer $49.95 $49.95 $49.95 $49.95 $49.95 $49.95Time Value Percentage (Growth) 0.0% 4.0% 4.0% 4.0% 4.0% 4.0%Time Value Multiplier 1.00 1.04 1.08 1.12 1.17 1.22Penetration 90.0% 90.0% 90.0% 90.0% 90.0% 90.0%Total Revenue to Expanded Basic $4,316 $90,888 $366,717 $862,897 $1,523,140 $2,293,565
General & Administrative Costs 2008 2009 2010 2011 2012 2013
One Time ExpensesFranchise Fee $26,000Business License Checklist to Cable TV Application Fee $3,445
Internet Service Provider App. Fee $145
Telecom Service Provider App. Fee $45
Recurring ExpensesSystem ManagementCost $216,000 $216,000 $216,000 $216,000 $216,000 $216,000Time Value Percentage (Growth) 0.0% 8.0% 8.0% 8.0% 8.0% 8.0%Time Value Multiplier 1.00 1.08 1.17 1.26 1.36 1.47System Management Total $216,000 $233,280 $251,942 $272,098 $293,866 $317,375Travel Expense Reimbursement $30,000 $30,000 $30,000 $30,000 $30,000 $30,000Coyote Broadband Management Board Fee $36,000 $36,000 $36,000 $36,000 $36,000General Management Reimbursement (from LCTS) ($12,000) ($12,000) ($12,000) ($12,000) ($12,000)Technical Consulting $24,000 $24,000 $24,000 $24,000 $24,000 $24,000
CAPEX 2008 2009 2010 2011 2012 2013
HeadendVideo Headend $2,500,000 $200,000 $200,000 $200,000 $200,000 $200,000
Building Tenant Improvement/Dishes (Simulsat) $110,000 $30,000
Middleware CostOption 1: Middleware NDS License Cost $0 $33,000 $0 $0 $0 $0
Cost per Subscriber $25 $25 $25 $25 $25 $25Number of Subs 8 162 629 1,422 2,414 3,495Total Cost per Subscriber $200 $4,050 $15,713 $35,550 $60,338 $87,363
Annual Software Maintenance ($ per sub) $3 $3 $3 $3 $3 $3Number of Subs 8 162 629 1,422 2,414 3,495Annual Software Maintenance Fees $24 $486 $1,886 $4,266 $7,241 $10,484Total Middleware Cost $224 $37,536 $17,598 $39,816 $67,578 $97,846
Option 2: Middleware Myrio License Cost $0 $27,625 $0 $0 $0 $0
DETAILED & SUMMARY DETAILED & SUMMARY FINANCIAL STATEMENTSFINANCIAL STATEMENTS
LEVERAGING THE BENEFITS OF A LEVERAGING THE BENEFITS OF A BROADBAND NETWORKBROADBAND NETWORK
Efficiently providing bundled services.
Network & services provide foundation for regional economic development.
Network is deployed with a plan for future growth, advancements, and future services.
Revenue opportunities through video transport, data transport, community private networks, and telemetry partnerships.
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Fiber-to-the-Premise(FTTP)
NETWORK ACCESS CHOICESNETWORK ACCESS CHOICES
Satellite
3G/4G Mobile
CO-Based DSLAM or
Multiservice DLC
Multiservice DLC with
Integrated xDSL
Fixed Wireless
Fiber-to-the-Node (FTTN)
Hybrid Fiber Coax
Satellite with telco
return
Direct CO Lines
CO
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Facilitates community interaction and connectivity.
Provides the “single point of contact” for the consumer.
Manages the complete delivery cycle of community information to improve utilization results and communication with the residents.
Provides revenue through local content advertising.
IMPLEMENTING A IMPLEMENTING A COMMUNITY NETWORKCOMMUNITY NETWORK
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WIRELESS INFRASTRUCTURE TRANSPORTWIRELESS INFRASTRUCTURE TRANSPORT
Wireless Networks interplay with hard-line networks to increase productivity,
and convenience is an important component of the Technology Master Plan™ as a secondary access
strategy, not the primary. Additional coverage where hard-line service is not available or cost prohibitive to construct.
Satisfies expectations of residents and commercial tenants.
Operationally difficult to maintain and support client services.
Single network architecture for multiple services is challenging to create and support.
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ADDITIONAL PRODUCTS & SERVICESADDITIONAL PRODUCTS & SERVICES
THIRD-PARTY APPLICATION PARTNERSHIPS
Home control and management Security services designed to take
advantage of connectivity Appliance control & energy
management
Real-Time Telemetry, Meter Reading and Services Control
Telemedicine Applications and Wellness Programs
Remote Energy and Water Management/Control
Interoperability of Commercial & Home Systems
BRAMBLETON
UNION PARK COYOTE SPRINGS
Innovative Community Planning, Thinking, and Development
AMERICA’S LEADING AMERICA’S LEADING CONNECTED COMMUNITIESCONNECTED COMMUNITIES
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Cleveland ClinicIntegrates clinical and hospital care with
research and education to provide a broad array of health care
Community Features, Health and Wellness Focus
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UNION PARK THE HEART OF LAS VEGAS
“This exciting project will redefine Las Vegas as a world-class city with culture, cutting-edge medical treatment and research, and true urban living in an environment that respects the city’s precious resources. – Las Vegas Mayor Oscar B. Goodman
Las Vegas Urban Redevelopment 61 acres of mixed use development, public and private facilities All facilities anchored with fiber and ubiquitous connectivity Full IP services
Lou Ruvo Brain Institute
Dedicated to the conquest of Alzheimer’s, Huntington’s,
Parkinson’s, ALS, and all forms of brain disease.
Institute is a worldwide cooperative research network seeking new treatments and
prevention methods.
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“Technology isn’t the reason I moved here, but it’s the reason I stayed.”“The whole reason we moved in was because it was a connected community.”
“I don’t think there’s any place quite like Brambleton in Northern Virginia, and I’m very proud.”
“Brambleton’s intranet is great; it’s wonderful for building connections.”
Loudon, VA6,240 homes, Town Center, Educational Center Verizon’s 1st FiOS Community Universal Services to all Residents Community Intranet Broadband Properties Award Winner 2006
FiOS Residential and fiber Town CenterAgreement with Medconcierge; remote medical servicesAgreement with Carina Technologies; energy information servicesVerizon Retail Center Plan for Partnership with Verizon Communications to create a Technology Center
Introducing Brambleton 2.0
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COYOTE SPRINGSCOYOTE SPRINGSA Unique Carrier-Content PartnershipA Unique Carrier-Content Partnership
Outside of Las Vegas, NVOutside of Las Vegas, NV
Home to the Western United States PGA Village
Entitled for 140,000 homes – 50+ million sq. ft. commercial
A “New Town” development
America’s Largest Master Planned Community
Fiber to the Premise (FTTP) Rural Location Exchange Carrier
Network Investment Developer Invested Video and
Data Content Retail Service Provider
Distance Shrinking Technology Energy Information Services and
IP Security 15
THE BROADBAND GROUP
900 South Pavilion Center Drive
Suite 180
Las Vegas, Nevada 89144
(702) 405.7000 | office
www.broadbandgroup.com
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