1. Traverse City Light and Power Fiber to the Home (FTTP)

2. TCL&P Fiber

3. TCL&P Current Fiber Uses
TCL&P - Electric Substation Connectivity
TCL&P - Security Camera Network
TCL&P – Future Advanced Metering Infrastructure (AMI) Use
TCL&P/DDA - Downtown Wi-Fi Network
City of Traverse City – City Building Connectivity between sites
TCAPS – School Building Connectivity between sites
GTACS – School Building Connectivity between sites
GT County – Building Connectivity between sites
Munson – Building Connectivity between sites
NMC – Connectivity to TCAPS
MISC – Various Dark Fiber Leases being negotiated

4. Business models TCLP as the provider All within light and power
Possible partnerships with nearby cooperatives or other providers
Similar to Chattanooga EPB model
Separate operator
TCLP owns fiber
Cost recovered through payment of a lease or access fee
Similar to Huntsville/Google model
We recommend exclusive (not open access)

5. Common infrastructure assumptions
24 month project duration
2 phases of construction
Distributed split or tap architecture
All passive network from substation to premise
No calculated financial benefits to TCLP from smart grid or economic development
20 year bond, 2.75% interest
58% aerial, 42% underground

6. Proposed phases Phase Services passed Aerial miles UG miles
Total miles
Density
Capital investment 1
6,121 47 26 73
83.7
$8,263,762 2
4,675 59 52
111
42.3
$7,948,533
10,796
106 78
184
58.8
$16,212,295

7. Proposed phases

8. Competitive summary Competitor Technology Speed Internet Price Intro
Pricing TV
AT&T
DSL
1.5mbps
3.0mbps
$30.00 Y
Charter
Cable
60mbps
Intro $44.99
$59.99

9. Competitive comparison
Tennessee Municipal Utility
Approaching 50% take rate
Competitors: Comcast and AT&T
Source – published annual report
Electric Cooperative data
Over 45% of meters
40% against Charter
25% launch take rate against two major competitors with over 100mbps
Source – clients

10. Demographic comparison with take rate control markets
Traverse City Market
Municipal power FTTH market
Rural cooperative market 1
Rural cooperative market 2
Population growth ( )
15.8%
12.2%
10.8%
-2.2%
Median household income
$52,950
$40,177
$47,725
$44,449
Per capita income
$28,050
$24,643
$20,901
$21,559
% families below poverty
6.8%
16.9%
12.9%
12.5%
% families with retirement or SSI
56.6%
49.7%
70.6%
55.2%
% households with public assistance
19.3%
31.6%
21.4%
24.6%
Population without high school diploma
6.3%
14.8%
Population with college degree
31.5%
27.2%
17.5%
14.7%

11. Neighboring cooperatives

12. Recommendations Take advantage of low interest/bond rates
Demand on contractor work force and materials is increasing
First to market with FTTH is important
Be competitive
Defend valuable market areas
Possible partnerships with Michigan cooperatives