1. City of Idaho Falls Fiber Optic Network Jackie Flowers General Manager Mark Reed Fiber Optic Project Manager Monday, July 30, 2007  Community & ED Conference  Portland, Oregon

2. Idaho Falls – At a Glance Southeastern Idaho boasts a concentration of environmental and technology based companies. Located in Idaho Technology Corridor. Rich scientific climate - four universities, Department of Energy/Idaho National Laboratory. Regional medical community. Large commercial businesses with multiple buildings. Population: 52,000+ 2% growth rate 23,467 Electric Customers.

3. Cities Traditionally Provide Infrastructure & Services Traditional Infrastructure Needed for Growth Roads, Airports, Railroads, Water, Sewer, Electric, Gas New Essential Infrastructure for Global Competitiveness Fiber Optic Broadband Infrastructure Services Benefiting from Advanced Communication Infrastructure Police, Fire, Water Supply, Wastewater Treatment, Electric Generation & Delivery, Schools, Traffic, Hospitals, General Government

4. Current data indicates more than 300 cities in the U.S. are pursuing some form of municipal Broadband program. 665 public power systems offer community broadband services 175 public power systems lease fiber

5. Broadband Needs Expected bandwidth need per average household is projected at 10-40 Mb

6. Contrasting Options Fiber No up or down limitations Virtually unlimited bandwidth: 1.5 Mb up to 10.0 Gb available Capable of carrying high bandwidth signal long distances Copper for DSL/dial up/ cable modem Bandwidth limited 1.5 Mb (standard in our area - 20.0 Mb (DSL/cable) 56K (dial up) Up/down limitations Distance limited Wireless via WiFi Bandwidth limited 10.0 Mb Reliability challenges Security challenges

7. History of Circa Network FY 2002FY 2003FY 2004FY 2005 - 2006 Business Planning Network Design Phase I Construction Fiber lease offered to business & service providers Phase II Construction Distribution Plan Phase III Construction Fiber Ordinance 11/05 construction complete Full operation FY 1999 Joint City/County Project 4 miles to connect Jail Courthouse Water Dept FY 2007 Branding Marketing Expansion

8. Deciding to Proceed Preserve ROW Reduce demand for pole space Cost savings to the City Value added “service” Economic Development tool More/better broadband service potential in an emerging global economy Foster competition among providers

9. Network Development Service Providers & Businesses o Stated a need for dark fiber to create their own business network. o Indicated this service was not currently available from established telecommunication companies. Assessed 3 scenarios: point-to-point network for City purposes, ring point-to-point with dark fiber, fully lit MCCN.

10. Why “Dark Fiber”? More than one successfully operating IP provider in existence during planning phase; IP providers were not interested in competing with municipality; More expensive/larger program if City provides services; Desire to preserve ROW defeated point in becoming a “service” provider.

12. Backbone Description Idaho Falls City limits ~ 17 square miles ~ 50 miles of backbone fiber ~ 50 miles of distribution fiber Redundant rings 96 strand backbone 96 percent overhead

13. Costs Total construction of three ring backbone $2.7 million. Circa repaying electric utility for cost. Circa is exceeding initial business plan estimates for revenue. Price based on operating costs – not for profit. Distribution drops to businesses paid by customer.

14. Benefits to City Government Develop IP based phone system for all City buildings o Cost savings o Increased efficiency & reliability Video arraignment WiFi network for emergency services Hydroelectric plants and substations o Redundant and more reliable SCADA o Web camera monitoring Remote training capability

15. Circa “Service” City provides infrastructure not service Broadband of 1 gigabit and beyond! City retains 18 backbone pairs for internal operation Currently leasing 15 backbone pairs, (out of possible 30) Five commercial service providers More than 150 distribution drops Seven direct business customers

16. Value to “leasing a pair” Virtually unlimited bandwidth capability Secure data Dedicated line Multiple building connectivity To serve customers More direct lease customers than originally anticipated

17. Annexing for Service Circa service is restricted to City limits Nitrocision – high tech company o International web based presentations o Need for reliable, high speed service o Building outside City limits – annexed Woodland Furniture o Custom furniture design over internet o Need for high speed/bandwidth o Building outside City limits - annexed

18. Enhancing Business Capability – Mountain View Hospital Lease pair to interconnect medical facilities in various locations throughout town: o Hospital Facility o Women’s Care Center o Urgent Care (West Side Emergency Room) o Orthopedic Center

19. High Tech Application – INL/DOE Had a mini-fiber system on campus Post 9/11 – reliability/security concerns Needed redundancy 8 facilities in City-limits Lease 4 pairs Implemented IP phone system Enhancing further expansions (CAES) and grant/program opportunities Interconnect with colleges