BROADBAND EXPANSIONPLANNING FOR

JEFFERSON COUNTY

Kevin Streett,General Manager February 25, 2020

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INCREASING DEMAND, UNCERTAIN PROVIDERS2

Residents, community groups demanding increased access to

broadband

EDC plans and County Comp plans list increasing access to broadband as a key element of sustaining and growing our economy

Large ISPs not expanding infrastructure, small ISPs few in number, growing

slowly

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PUD BROADBAND HISTORY

2000 NoaNET Member

2010 BTOP grant funds installed initial fiber

20+ miles installed to anchor institutions

20+ miles added since 2013 for SCADA system

Approx 45 fiber connections today

NoaNet manages PUD network

CURRENT CHALLENGESFOR JEFFERSON PUD BROADBANDEXPANSION

No Retail Authority

Low Revenues

High Debt from Power

System Purchase

Spread out rural

population

Limited Staffing

Few ISPs

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OPPORTUNITIESFOR JEFFERSON PUD BROADBAND EXPANSION

Improve, Modernize our Grid

Increase Customer

Base

Grow Local Economy

Strengthen Community Relations

Prep for New

Technologies

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RECENT ACHIEVEMENTS

IMPROVED PARTNERSHIPS

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CenturyLink fiber swap on Marrowstone• Improved Internet to existing customers• Boosted Cellular on Indian Island

Colocation with Wave• Rack Space in CO• Increased fiber capacity, improved service

County PIF Grant Award• 1 mile of Fiber along Water street• Nearly 2 miles installed in last 6 months

New NoaNet Contract (March 1)• Improved Revenue Share• Clearer roles/responsibilities

STRATEGIC PLANNING PROCESS PHASE 1FUNDED BY WA STATE COMMERCE CERB GRANT

MAGELLAN ADVISORS CONSULTING CONTRACTOR

CO-SPONSORED BROADBAND SYMPOSIUM

JBAT FORMED

SURVEY DISTRIBUTED

STAKEHOLDERS INTERVIEWED

FULL PLAN RECEIVED LATE FALL

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2019 SURVEY RESULTS

10mbps or less

More than 25mbps

10 – 25mbps

70%Respondents do not have Broadband Speeds

1208 respondents

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MAGELLAN RECOMMENDATIONSIndustry Partnership Model Fiber, fixed wireless and potentially cellular Shared resources, expenses and profits with partner

LUD/Fiberhood Projects Follow Mason 3 and Kitsap PUD based models Neighborhood Approach

Expand Business Services: Rack Space, Pole Attachments, Fiber swaps/lease Dark Fiber, DIA (direct internet access)

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Partner provides capital and network management

Partner should be nationally recognized agency

Partner needs to have spectrum available for fixed wireless service

Partner to share revenue based on contributions

Expect deployment of fiber and fixed wireless

Must be agreeable to Open Access Network

Partner will capitalize on the assets of the PUD for reducing the network costs

Cellular communications will also improve for the whole community

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INDUSTRY PARTNERSHIPDETAILS

STAFF FINDINGSFTTP (Fiber to the Premises) not Feasible

• Cost too much, takes too long, risk of obsolescence before complete

LUD approach is Achievable but Limited

• Slow process, will provide low number of connections to customers

Industry Partnership Model High Risk/Reward

• High up front costs, less control, potential backlash, but best chance for highest number and hardest to reach connections over shortest time frame.

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BROADBAND QUESTIONS

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Strategic Priority Key service, or nice to have?

Engagement Level Lead or support agency? Alone or partner?

Service Level Broadband for All or All who want it? Backbone or Last Mile provider?

Investment level Tax Dollars? Debt/limited low interest

loans? Funded in part by Electric, SCADA?

Timeline Realistic timeframe based on options and monies available? 5, 10, or 20?

PHASE 2 BUSINESS PLANNING SCOPE OF WORK

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Last Mile Policy and Program Development

Broadband Products and

Wholesale Rates

Identification of Funding Sources

Detailed Five & Ten year Cash

flow projectionsStaffing Plans Marketing Plan

and Strategy

NEXT STEPSCOMMISSIONER FEEDBACKISSUE RFP/SELECT CONSULTANTBEGIN WORK ON BUSINESS PLAN

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