Alameda Power & Telecom An Enterprise of the City of Alameda ENTERING THE BROADBAND BUSINESS

Who We Are Municipal Enterprise - City Department –Serving citizens since 1887 Telecom utility established in 1998 –City Charter revision Nov 1998 –Granted Franchise November 1999 Construction Jan 2001 First customer June 2001 –Currently 9,711 customers Public Utilities Board oversight

Where is Alameda?

Why? Base Closure –General economic downturn –Find and develop other revenue sources Approaching Electric Deregulation in CA –Build command & control system Needed fiber for Distribution Automation (DA) and Automated Meter Reading (AMR) to be cost effective Citizen Dissatisfaction –Four providers over 10 years; limited local customer service –Task Force recommendation to prepare feasibility study with goal of local service, latest technology

Vision National Information Infrastructure National Information Infrastructure Telecommunications Transport System Utility Network -Monitoring & Control -Energy Services -System Automation -Auto. Meter Reading Residential Network -Residential Services -CATV/HSD Services -Information Services -Security Systems Community Network -Government Offices -Libraries -Schools and College -Hospital Enterprise Network -Industrial -Financial -Commercial -Information Providers A Municipally Owned Broadband Network...Reliable Telecommunications... Lowest Cost... Universal Access... Variety of Services... Source: Businness Plan Figures 1.1 and 1.2

Business Plan Summary Own and Operate Hybrid Fiber-Coaxial Network Provide TV and Data (Internet) Services Built to provide alarm monitoring and telephony Priced below competition administrative efficiencies with electric utility marketing advantage – local ownership; no stockholders newer plant means lower maintenance costs

CATV Internet Service Plant Characteristics 860 MHz –Comcast is at 450MHz with upgrade to 750 MHz in process –Higher capacity, speed and clarity of signal Fiber to the node –Reduced maintenance costs Coaxial cable to the user 500 users per node –Ability to “split” to 250 with higher penetrations –Comcast usually at 750 users per node Wi-Fi or Broadband over Power Line options –Under review for commercial areas

Construction of CATV/ Internet Service Plant Plant completed:24 miles underground 77 miles aerial Node Status: –52 nodes certified (26,000 users) –3 nodes in progress (1,000 users) –37 nodes to be built (incl partially complete nodes) 25 Main Island (12,500 users) 12 Bay Farm Island (6,000 users)

Preparing for the Publicity Battle How to thwart the incumbent providers Tell your story…be proactive and do it early. Don’t let the competition tell your story Champion local connection to the community constantly Capitalize on relationships with the local media Respond to all claims from the competition that municipal broadband does not work Ballot measures: have a campaign plan; take it to the streets Develop FAQS and scripts for staff, commissioners, city council members and other municipal departments Ensure that staff has information and review continuously Remember…public power wears the “white hat” in your community

Development of New Utility Policies Revise “Rules and Regulations” to accommodate telecom operations Examples: service agreements, service rules, billing policies, credit and collection policies, discontinuance of service policies, etc. Citizen programming committee