1. Virginia’s Broadband Future
Broadband Best Practices Summit
Technet: San Jose, California
June 29, 2007
Tad Deriso, General Manager
(804)

3. 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

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

5. 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

7. MBC Industrial Park Access
Airpark 460

8. 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

9. 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…

10. 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

11. 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

12. 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

13. 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

14. 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%)

15. 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.

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