Transcription
Preliminary Fiber Network Design andBusiness Plan FrameworkPrepared for the City of Culver City, CaliforniaSeptember 2013
Preliminary Fiber Network Design and Business Model FrameworkSeptember 2013Page iTable of Contents1.Executive Summary . 11.1Background .11.2Methodology.11.3Broadband to Businesses Can Create Economic Activity .21.4Goals and Objectives.31.5Fiber Deployment Plan .41.6Financial Analysis Framework .51.7Financial Summary.61.8Next Steps and Action Items .72.Connectivity Market in Culver City . 92.1Understanding Fiber Connectivity Performance .92.2 Competitive Service Providers .132.2.1Dark Fiber Services .152.2.2Ethernet Services .162.2.3SONET Services.182.2.4Video Services .192.2.5Wavelength Services .202.3Existing Culver City Fiber and Routes .222.4Service Gaps the City Plans to Address .232.5 Potential Leasing and Service Strategies for City Infrastructure .242.5.1Conduit Lease .252.5.2Dark Fiber Lease .252.5.3Wholesale or Open Access Services .282.5.4Retail Service .283.Proposed Fiber Strategy . 303.1Redundant Fiber Backbone (Phase 1) and Tract Laterals (Phase 2).303.2Tracts (Phase 2).333.3Connecting Customers in a Tract (Sample Fiber-to-the-Premises Design, Phase 2) .393.4Connecting Community Anchor Institutions (Phase 3) and Businesses (Phase 4) .414.Deployment Overview . 434.1Fiber .434.2 Network Electronics .444.2.1Passive Optical Networking (PON) Overview .444.2.2Ethernet Overview .454.2.3Culver City System-Level Network Design .45Hub Site .46Field Electronics.474.2.4Installation Scenarios .47
Preliminary Fiber Network Design and Business Model FrameworkSeptember 2013Page iiInstallation Scenario 1: PON to the Tenant .47Installation Scenario 2: PON to the Building .48Installation Scenario 3: Ethernet Transport .495.Financial Analysis Framework . 505.1Summary .505.2 Construction Cost Assumptions.515.2.1Fiber Costs .515.2.2Network Electronics Costs .525.2.3Customer Costs .535.3 Expense Assumptions .535.3.1Annual Multipliers .535.3.2Operating Expenses .535.3.3Internal Staffing Allocations .545.3.4Partner ISP Fees .545.3.5Allowance for Bad Debt and Collections .555.3.6Business Development and Engineering Support .555.3.7Customer Connection Expenses.555.3.8Depreciation Expenses .555.3.9Replacement Capital .555.4Revenue Assumptions .555.5 Sensitivity Analysis .565.5.1Take Rates .575.5.2ISP Fees .575.5.3Service Revenues .58AppendicesAppendix A: Benefit Framework for Government FiberAppendix B: Pro Forma Financial Statements
Preliminary Fiber Network Design and Business Model FrameworkSeptember 2013Page iiiTable of FiguresFigure 1: Illustration of Service Symmetry on Download Times . 10Figure 2: Capacity and Speed of Broadband Technologies . 13Figure 3: Culver City Fiber Map . 23Figure 4: Conduit Lease . 25Figure 5: Fiber Lease . 26Figure 6: Wholesale or Open Access Services . 28Figure 7: Retail Services. 29Figure 8: Backbone . 31Figure 9: Backbone with Tract Laterals . 32Figure 10: Fox Hills Tract . 34Figure 11: Hayden Tract . 35Figure 12: Jefferson Corridor Tract. 36Figure 13: Smiley Blackwelder Tract. 37Figure 14: Washington National Tract. 38Figure 15: Sample Fiber-to-the-Premises (FTTP) Diagram . 40Figure 16: Backbone with Connections to Community Anchor Institutions . 42Figure 17: Culver City System-Level Network Diagram . 46Table of TablesTable 1: Condensed Income and Cash Flow Statement (Base Assumptions) . 6Table 2: Condensed Income and Cash Flow Statement (Financed, with Increased Fees) . 7Table 3: Existing Culver City Service Providers . 14Table 4: Pricing Comparison Table . 14Table 5: Speed Comparison Table . 15Table 6: Number of Business by Tract . 33Table 7: Potential Phase 3 and Phase 4 Customers . 41Table 8: Condensed Income and Cash Flow Statement (Base Assumptions) . 51Table 9: Estimated Fiber Construction Costs. 52Table 10: Number of Businesses by Tract . 56Table 11: Take Rate Reduced to 45 Percent. 57Table 12: Take Rate Reduced to 35 Percent. 57Table 13: ISP Fees Increased by 10 Percent . 57Table 14: ISP Fees Decreased by 10 Percent . 58Table 15: Service Revenues Increased by 10 Percent . 58Table 16: Service Revenues Decreased by 10 Percent . 58
Preliminary Fiber Network Design and Business Model FrameworkSeptember 2013Page 11. Executive Summary1.1 BackgroundTh
Preliminary Fiber Network Design and Business Model Framework September 2013 Page 1 1. Executive Summary 1.1 Background This report presents a -level network strategy, design, and business model framework high to support Culver City’s (City) consideration and
