Virginia’s Broadband Future Broadband Best Practices Summit Technet: San Jose, California June 29, 2007 Tad Deriso, General Manager tad@mbc-va.com (804) 855-4057

MBC Overview Idea formed in 2000 by local business leaders, Old Dominion Electric Cooperative and Virginia Tech Lack of advanced/affordable telecom infrastructure Desire for Private Sector to be key players in the project Transform the regional economy by creating a unique technology advantage

Problem to Solve? T-1 Dial-up ISDN DSL Cable Wireless 54k 128k 768k 1.5MB 2.0MB T-1 T-3 OC-3 OC-12 OC-48 OC-192 1.5mb 45mb 155mb 622mb 2.5gb 10gb Ethernet Services: 10MB…..10GB Residential/Small Business Carriers / Enterprise / Large Users

MBC Business Model Focus on the “Dumb” Pipe Don’t select last-mile winner/losers Private Sector participation Flat-Rate Wholesale Pricing Model Level the playing field for broadband services Metro Ethernet, TDM, Wavelength Services Willing to provide Dark Fiber

MBC Industrial Park Access Airpark 460

MBC Today Over $40 million in grant funding Regional network operational 4th Qtr-’06 MBC offers wholesale services to Members (Telecom Service Providers) Efficient staffing & resources to operate carrier-class network FY07 revenues: $1M, FY08 proj: $1.4M

MBC Competitive Advantage Only rural region in the US with owned fiber and transport to Tier1 Data Locations 200Gbps System - Infinera Currently 36 Gigabits provisioned on MBC long-haul network Price Point Comparisons…

Solving the Backhaul Challenge Improving Contention Ratios for ISP’s Cost effective access for larger telecom service providers Transport & Internet Pricing Level Set TRANSPORT COST INTERNET PORT COST Circuit Type Before MBC After MBC DS1 $500 $250 $800 $300 DS3 $5,000 $1,500 $6,000 $3,000 10Mbps Ethernet N/A $400 $1,000 50Mbps Ethernet 100Mbps Ethernet and Above $2,000

50Mbps $2,420 100Mbps $3,380 200Mbps $5,820 1GigE $8,280 50Mbps $2,564 Equinix to SAIC Building 50Mbps $2,420 100Mbps $3,380 200Mbps $5,820 1GigE $8,280 Equinix to Northrup Grumman 50Mbps $2,564 100Mbps $3,264 200Mbps $5,560 1GigE $7,650

50Mbps n/a 100Mbps $3,477 200Mbps $5,905 1GigE $15,169 Richmond POP to Data Center 50Mbps n/a 100Mbps $3,477 200Mbps $5,905 1GigE $15,169

50Mbps $2,025 100Mbps $2,700 200Mbps $4,100 1GigE $6,300 Equinix to Danville - IALR 50Mbps $2,025 100Mbps $2,700 200Mbps $4,100 1GigE $6,300

Monthly Metro Pricing Northern Virginia 50Mbps 100Mbps 200Mbps 1GigE Equinix – SAIC (Herndon) $2,420 $3,380 $5,820 $8,280 Equinix – NGC (Reston) $2,564 $3,264 $5,560 $7,650 Richmond, Virginia 50Mbps 100Mbps 200Mbps 1GigE Level(3) POP to Innsbrook n/a $3,477 $5,905 $15,169 Southside Virginia 50Mbps 100Mbps 200Mbps 1GigE Equinix – IALR Danville $2,025 $2,700 $4,100 $6,300 (average price variance) (19%) (18%) (29%) (39%)

The Balanced Scorecard Financial OBJ MEASURE TARGETS INIT. Customer Internal Processes Vision and Strategy OBJ MEASURE TARGETS INIT. OBJ MEASURE TARGETS INIT. Jobs in Communities OBJ MEASURE TARGETS INIT.

The Most Important Sign that Rural Virginia is Open for Business and has Embraced the Technology Age…