Mainstream Fiber Networks partnership Proposal Harrison County Mainstream Fiber Networks partnership Proposal

Current Route Mainstream Fiber Funded

Current Project potential Statistics Addresses served 6,518 62% anticipated buy rate = 4,041 Total addresses in Harrison County: 17,991 Potential addresses served is 36% of total addresses in County

Current Project public Interest

Timelines Fiber to the home (FTTH) – no copper Installations begin 45-90 days after zone is ready Clients may sign up on COS zones system – msfiber.servicezones.net/Harrison Notice will be sent when zone is ready to all clients in service area who have signed up Once contract signed, client entered into queue for installation We would install 30-45 days after an agreement for service would be signed. Customers may sign up for service under the Zones system. Once we are ready to start installations In an area, notice would be sent for the customer that we are entering the contract phase. Once, the contract is signed, then they would be placed into the queue for the installation phase. We have 608 customers in the que for service. Approximately 15% of these customers are receiving service.

Service costs Residential Fiber - 25/10 Monthly Cost: $59.95 Minimum Installation Cost: $450.00 Residential Fiber Optic Internet service directly to the home/business with speeds of 25Mbps download and 10Mbps upload Residential Fiber - 50/20 Monthly Cost: $79.95 Minimum Installation Cost: $450.00 Residential Fiber Optic Internet service directly to the home/business with speeds of 50Mbps download and 20Mbps upload Residential Fiber - 100/30 Monthly Cost: $99.95 Minimum Installation Cost: $450.00 Residential Fiber Optic Internet service directly to the home/business with speeds of 100Mbps download and 30Mbps upload

Small Business Fiber - 10/5 Monthly Cost: $59.95 Minimum Installation Cost: $450.00 Fiber Optic Internet service directly to the small business with speeds of 10Mbps download and 5Mbps upload. Includes expedited customer service Small Business Fiber - 25/10 Monthly Cost: $79.95 Fiber Optic Internet service directly to the small business with speeds of 25Mbps download and 10Mbps upload. Small Business Fiber - 50/25 Monthly Cost: $99.95 Fiber Optic Internet service directly to the small business with speeds of 50Mbps download and 25Mbps upload. + 2 Phone Lines Terms and Conditions SB Letter of Intent.pdf MSFN SB ISA SAMPLE.pdf Small Business Fiber - 50/25/2 Monthly Cost: $165.95 Fiber Optic Internet service directly to the small business with speeds of 25Mbps download and 10Mbps upload

Small Business Fiber - 25/10/2 Monthly Cost: $145.95 Minimum Installation Cost: $450.00 Fiber Optic Internet service directly to the small business with speeds of 25Mbps download and 10Mbps upload. + 2 Phone Lines Small Business Fiber - 50/25/2 Monthly Cost: $165.95 Fiber Optic Internet service directly to the small business with speeds of 25Mbps download and 10Mbps upload

Background Questions regarding timeliness of construction Ability to install customers at an acceptable rate using one of two methods: Install main line, then add additional lines to more customers Market to defined areas to determine level of interest – when there is sufficient interest, fiber would be built Second is more time consuming and will not meet anticipated timeline or expectations

Proposal Provide up to 1GB speed to proposed service area Construction to begin within 90 days of contract signing (Engineering will be completed and submitted for permit and pole use/easement agreements) Phase II Initial build out – main line 115 miles of fiber optic backbone Secondary build – adjoining roads (up to one mile in either direction) MSFN Installation of customers will commence when initial build out is 25% complete Complete construction/installation approximately 1 year (main backbone)

Phase II Proposed Project

Phase ii Project potential Statistics Addresses served 8,853 62% anticipated buy rate = 5,488 Total addresses in Harrison County17,991 Potential addresses served is 49% of total addresses in County

Potential Addresses Served Costs of each phase Project Costs Requested Funding Potential Addresses Served Phase I Private Investment $0 6,518 Phase II $15m $5m 8,853 Potential to serve 85% of all addresses in Harrison County with just two phases and a $5million investment from funding partners

Structure of Funding We are requesting partnership funding to cover a portion of the cost to install the main line (initial route). Additional expansion (secondary route and last mile) would be assumed by MSFN. Services would be provided by MSFN to clients and community that would help offset County investment portion of the project.

Contract Notes 25% of $5million up front for cost of supplies (progress billings to follow) 10% withheld until full completion of Phase II main route project Not to exceed $5million

Price freeze for all clients a. No price increase for term of contract Introductory promotion for clients Choose term 3-7 years Free month of service for each year of contract Affordable pricing for poverty level clients Pricing based on income level Reductions up to 80% Will accept all participants

4. Public Safety Wireless (Private Wi-Fi) Building Wi-Fi locations specifically designed for eligible public safety groups only Connection to county public safety resources Will provide installation of sites Maintenance of site for five years

Why invest in Broadband internet infrastructure While the nation continues to make progress in broadband deployment, many Americans still lack access to advanced, high-quality voice, data, graphics and video offerings, especially in rural areas and on Tribal lands, according to the 2016 Broadband Progress Report adopted by the Federal Communications Commission. -January 29, 2016, Federal Communications Commission Broadband Progress Report

Key findings include the following: 10 percent of all Americans (34 million people) lack access to 25 Mbps/3 Mbps service.  39 percent of rural Americans (23 million people) lack access to 25 Mbps/3 Mbps. By contrast, only 4 percent of urban Americans lack access to 25 Mbps/3 Mbps broadband. The availability of fixed terrestrial services in rural America continues to lag behind urban America at all speeds:  20 percent lack access even to service at 4 Mbps/1 Mbps, down only 1 percent from 2011, and 31 percent lack access to 10 Mbps/1 Mbps, down only 4 percent from 2011.

Americans living in rural and urban areas adopt broadband at similar rates where 25 Mbps/ 3 Mbps service is available, 28 percent in rural areas and 30 percent in urban areas. While an increasing number of schools have high-speed connections, approximately 41 percent of schools, representing 47 percent of the nation’s students, lack the connectivity to meet the Commission’s short- term goal of 100 Mbps per 1,000 students/staff. This Report concludes that more work needs to be done by the private and public sectors to expand robust broadband to all Americans in a timely way.  The FCC will continue working to accelerate broadband deployment and to remove barriers to infrastructure investment, in part by direct subsidies, and in part by identifying and helping to reduce potential obstacles to deployment, competition, and adoption.

“People Show their support with their feet.” - Milton Freidman 40,000 new jobs coming into River Ridge School capacity to grow at all Harrison County school corporations Great opportunities for Harrison County and a greater opportunity cost to not supporting this project

Next steps Approval of concept Funding of project-$5million Identify project lead Negotiate contract with MSFN Construct Phase II