city of geneva, illinois broadband initiative

11/12/02 United Telesystems, Inc. 1

City of Geneva, IllinoisBroadband Initiative

November 12, 2002

J. Allen DavisUnited Telesystems, Inc.

1 Greatcoat LaneSavannah, GA 31411Phone: 912-598-7223Fax: 912-598-9444

e-mail: [email protected]


United Telesystems, Inc.

• Broadband System Development• Competitive Broadband Projects

– Hybrid Fiber/Coax (“HFC”)– Fiber-to-the-Curb (“FTTC”)– Fiber-to-the-Home (“FTTH”)

• Current Client Base– LECS & CLECS– Municipals– Electric Utilities– Startups


UNITED TELESYSTEMS, INC.MUNICIPAL CLIENTS

Service Provider Status Service Provider Status

Bolivar Electric Department Project On Hold City of Vidalia, GA Business Plan CompletedCity of Acworth CableNet System Launched February 2001 Clay County, FL Business Plan CompletedCity of Andalusia, AL Business Plan Completed Coldwater Board of Public Utilities Operating SystemCity of Barnesville, GA Fiber Agreement Negotiated with Charter Columbia Power & Water System System Under ConstructionCity of Baxley, GA Business Plan Completed Covington Cable Operating SystemCity of Cairo, GA Under Construction Covington Elecric System System Launch March 2002City of Camilla, GA Under Construction Covington Electric Cooperative Business Plan Under ReviewCity of Commerce, GA Business Plan Completed Electric Power Board of Chattanooga Business Plan Under ReviewCity of Elba, AL Business Plan Completed Fairburn Utilities Bond Issue Closed May 2001City of Elberton, GA System Under Construction Fayetteville Electric System System Launched March 2001City of Fitzgerald, GA Business Plan Completed Forsyth CableNet Operating SystemCity of Flagler Beach, FL Strategic Plan Completed Gainesville Regional Utilities Business Plan CompletedCity of Floresville, AL Strategic Plan Completed Hopkinsville Electric System Business Plan in ProgressCity of Hartford, AL Franchise Assessment Completed Jackson Energy Authority Business Plan CompletedCity of Healdton, OK Business Plan Under Consideration Lawrenceburg Power System Business Plan CompletedCity of Jacksonville, AR Business Plan Completed Murfreesboro Electric Department Survey & Strategic Planning CompletedCity of Little Rock, AR Business Plan Completed Nashville Electric Service Strategic Planning CompletedCity of Maumelle, AR Business Plan Completed Newnan Utilties System Launch 1996City of Monroe, GA Business Plan Completed Opp Cablevision Operating SystemCity of Monticello, GA Business Plan Completed Poplar Bluff Municipal Utilities System Launched 2001/Acquisition PendingCity of Moultrie, GA System Launch 2001 Princeton Electric Plant Board Board Approval PendingCity of North Little Rock, AR Business Plan Completed Pulaski Electric System Comptroller Filing in ProgressCity of Paragould Water & Light, AR Business Plan Completed Ripley Power & Light Business Plan CompletedCity of Slocomb, AL Franchise Assessment Completed Scottsboro Electric Power Board System Launched 1998City of Sylvester, GA HE Arrangement Pending Springfield Electric Department Business Plan in ProgressCity of Thomaston, GA Business Plan Completed Stevenson Utilities Business Plan CompletedCity of Thomasville System Launched 1999 Swainsboro Development Authority Business Plan CompletedCity of Tifton CityNet System Launched 1999 Tullahoma Utilities Board State & Local Approval Obtained


United Telesystems, Inc.Municipal Broadband Project Financings

Plant Homes FinancingFranchise Area Miles Passed Through 10/02 Phases Status

Acworth, Georgia 130 6,036 $12,200,000 Phases I & II February 2001 LaunchCairo, Georgia 113 4,260 $6,600,000 Phase I September 2001 LaunchCamilla, Georgia 58 2,407 $3,600,000 Phase I December 2001 LaunchColumbia, Tennessee 253 16,268 $15,000,000 Phase I Bond Issue Closed 3/02Covington, Georgia 379 15,900 $2,640,000 Phase I Operating SystemCovington, Tennessee 91 4,518 $5,720,000 Phase I February 2002 LaunchFairburn, Georgia (Union City) 102 5,749 $3,340,000 Phase I Operating SystemFayetteville, Tennessee 237 6,794 $11,560,000 Phase I & II March 2001 LaunchForsyth, Georgia 94 2,530 $5,400,000 Phase I Operating SystemHopkinsville, Kentucky 291 14,664 $26,850,000 Phase I City Council Vote PendingJackson, Tennessee 678 31,239 $62,000,000 Phase I Bond Issue to Close 8/02Moultrie, Georgia 160 7,358 $9,250,000 Phase I November 2001 LaunchPoplar Bluff, Missouri 177 10,065 $16,520,000 Phases I & II August 2001 LaunchScottsboro, Alabama 179 6,172 $9,500,000 Phases I & II Operating SystemTifton, Georgia 201 10,061 $7,900,000 Phase I Operating SystemTotal 3,143 144,021 $198,080,000


Community Objectives

Improve Local InfrastructureEnhance Educational OpportunitiesPromote Industrial/Commercial GrowthImprove Utility Operating EfficienciesDiversify RevenuesLocal Reinvestment of Service Revenues


Community Network Service Objectives

Enhanced Available Service OfferingsVideo Services

AnalogDigitalInteractive Services

High-Speed Data and Internet AccessTelephone ServicesUtility Automation


Market EnvironmentPlayers Content ApplianceTransportConsumer

Movies

Books

HealthCare

Music

InformationServices

HomeShopping

Wireline

Broadcast

Wireless

Cable

Phone

Cellular/PCS

GamePlayer

SetTop

Multi-Media

Business/Professional

Home/Consumer

Campus/University

Multi-TenantResidential

• Cable TV Companies• Telephone Companies• Interexchange Carriers• Wireless Providers• Competitive Access

Providers• PCS Operators• Value Added Resellers• Internet Access

Providers• High Speed Data

Providers


FTTC Network Infrastructure

Fiber-to-the-Customer NetworkUnlimited CapacityTwo-Way Capability1 Home Nodes

Wide Area/Local Area Telecom NetworkCommercial Telecommunications PlatformExpanded Service Area Opportunities


FIBER-TO-THE-CUSTOMER ARCHITECTURE

HEADEND

Fiber Drop

FIBER OPTIC DISTRIBUTION

Fiber Feeder

Fiber Feeder

Fiber Drop

Fiber Feeder


FTTC vs. HFC

• Initial Capital Investment– Upgrade/Rebuilds– Green Field

• Future Rebuild/Upgrade Costs• Service Provisioning• Bandwidth and Provisioning New Services• Technical Support• System Operations• Marketing and Customer Perception


DEMOD

Earth StationAntennasTape Deck

System Manager TYPICAL HEADENDOPERATION

I S P

VIDEO AND AUDIO PATCH SWITCH

MOD MOD MODSTEREO

ENCODERMOD

COMBINER

ATX TRANS 1

TRANS 2

TRANS 3

W

ReturnReceiver

RETURN FIBERFROM NODES


TelephonyOperationSupport

Class 5LDS

ServerComplex

TelephonyHost

Data Gateway

DigitalVideo

FiberSystem

Analog Video

NID/HUDP

TV

Data/Modem

FTTC Network Equipment

Fiber

HEADENDMeter

Reading

PON/LMC

All Fiber BroadbandInfrastructureNetwork Elements Subscriber Access

New services can be added incrementally given suitable Network infrastructure.


T-1s

FTTH Network

Equipment

FiberSystem

Optical Network

UnitEthernet

Card

FTTC High Speed Data Service

FiberTap

RFAmplifiers

HEADEND

Operation/CustomerService Support

ON

All FiberInfrastructure

Data Network Elements Subscriber Access

1. Broadband network provides connectivity from the customer premise to headend.2. Telco provides T-1 lines from the headend to the Internet.3. The data equipment is imbedded in the network architecture4. City/Vendor provides customer service and network operations support.5. Contractor provides service installation and on-site tech support.


The Geneva Business Plan• Service Area Assessment

– Residential– Commercial

• Market and Industry Analysis• Federal and State Legal Review• Incumbent Service Providers Assessment• Proposed Infrastructure & Deployment Plan• Partnering Assumptions• Capital and Operating Budget


City of GenevaGeneva, Ilinois FTTH/FTTB Broadband Financial Projections - Base Case 2002Project Summary

Service Area Summary PercentageAerial Plant Miles: 53 47.1%Underground Plant Miles: 60 52.9%Total Plant Miles: 113 Total Potential Residential Customers Passed: 8,052 80.5%Total Potential Commercial Customers Passed: 1,947 19.5%Total Potential Customers Passed: 9,999 Total Potential Customers Per Plant Mile: 88.30

Projected CustomersVideo Services - Residential 2,738 34.0%High Speed Data - Residential 1,062 13.2%Telepone Service - Resdidential 604 7.5%Video Services - FCC Equivalent Commercial Units 20 1.0%High Speed Data - Commercial 341 17.5%Telephone Service - Commercial 219 11.3%Total Customer Service Units: 4,983

Total Project Capital Budget: $18,205,728Total Project Capital Per Plant Mile: $160,774Total Project Capital Per Customer Service Unit: $3,654Total Project Capital Per Potential Customer Passed: $1,821


G eneva F iber N etw orkG eneva, Illinois

A nalog C hannel L ineup

C hannel Service C hannel Service2 W B B M (2) C B S C hicago 43 A BC Fam ily C h an n el3 W FLD (32) FO X C hicago 44 Lifetim e4 The W eather C hannel 45 W om en 's E n ter ta in m en t5 W M A Q (5) N B C C hicago 46 O xygen6 W C IU (26) IN D C hicago 47 HG T V7 W LS (7) A B C C hicago 48 T h e Learn in g C h an n el8 W PW R (50) U PN C hicago 49 D IY N etwork9 W G N (9) W B C hicago 50 E SPN

10 Local C om m unity C hannel 51 E SPN 211 W TTW (11) PB S C hicago 52 E SPN C lassic Sports12 W C PX (38) PA X C hicago 53 T h e G olf C h an n el13 W JYS (62) C hristian C hicago 54 O utdoor L ife C h an n el14 H B O 55 Speed C h an n el15 H B O 2 56 Fox Sports M idwest16 H B O Fam ily 57 O utdoor C h an n el17 W G B O (66) U N IVISIO N C hicago 58 In spira tion al N etwork18 TB S 59 T BN19 W SN S (44) TE LE M U N D O C hicago 60 E W T N20 W YC C (20) PB S C hciago 61 C M T V21 E ducational/G ovt. A ccess C h 62 G reat A m erican C oun try22 TV G uide C hannel 63 V H-123 Headlin e N ews 64 BE T24 Q V C 65 M T V25 HSN 66 C om edy C h an n el26 Fox N ews 67 C ourt T V27 C N N 68 C -Span28 M SN BC 69 C -Span 229 C N BC 70 T ech T V30 T h e D isn ey C h an n el 71 Sci- F i C h an n el31 USA N etwork 72 N ation al G eograph ic32 T h e N ation al N etwork 73 D iscovery Health N etwork33 fX 74 Food N etwork34 T h e History C h an n el 75 T ravel C h an n el35 T h e D iscovery C h an n el 76 Bravo36 A n im al P lan et 77 Fin e L ivin g37 T V Lan d 78 E ! T elevision38 N ickelodeon 79 G am e Sh ow N etwork39 C artoon N etwork 40 A m erican M ovie C lassics 41 A & E 42 T N T


GENEVA FIBER NETWORKDigital Video Services

Service Service Service

Digital Basic Tier Services Digital Premium Services Digital Premium ServicesDiscovery Kids Encore Group HBO GroupDiscovery Science Encore HBO EastDiscovery Home & Leisure Encore Westerns HBO PlusDiscovery Wings Encore Action HBO SignatureDiscovery Civilizations Encore True Stories HBO Family EastSoapNet Encore Mystery HBO Comedy EastBBC America Encore Love Stories HBO Zone EastMuch Music Toon Disney Starz!/Encore Group Cinemax GroupNoggin Encore Cinemax Nick Games & Sports Starz! More Max EastWAM! Starz! Theather Action Max EastBoomerang Starz! BET Movies Thriller Max EastBloomberg Television Starz! Family CNN/FN Starz! Cinema The Movie Channel GroupCNN en Espanol The Movie Channel EastInspirational Life TV Digital Audio The Movie Channel 2Style Music Choice (45 Channels) The Movie Channel WestLifetime Movie Network IFC Digital Pay-Per-View Channels Showtime GroupBET on Jazz In Demand PPV Preview Showtime EastVH 1 Classic Rock In Demand (21 Channels) Showtime 2 EastVH-1 Country ESPN Sports Packages Showtime 3 EastVH 1 Soul NBA/WNBA League Pass Showtime Beyond EastMTV 2 NHL Center Ice Package Showtime Extreme EastMTV S Video On Demand Channel(s)MTV X Showtime Digital PackageBiography Channel Showtime GroupHistory International The Movie Channel GroupGoodlife Television Network FlixFox Sports World Sundance ChannelWisdom NetworkBET GospelShop NBCFamilyNet


Basic Services Rate Equipment Rental RateLimited Basic (18 Channels) $10.95 Standard Converter with Remote $1.00Expanded Basic (57 Channels) $23.55 Digital Converter (Additional Set) $5.95Standard Basic (75 Channels) $34.50 Digital Converter with Music Choice & PPV $6.95Line Maintenance Plan $1.95 Total Basic (75 Channels) $36.45 Installation of Residental Service Digital Basic Tier (35 Video Chs. + 45 Audio Chs.) $10.95 Unwired Home $30.00Premiere Basic (110 Video Chs. + 45 Audio Chs.) $47.40 Prewired Home $20.00 Multi-Family Residence $15.00Premium Services Additional Outlet (same trip) $10.00HBO, HBO Plus, HBO Family (Analog Service) $11.95 Additional Outlet (separate trip) $15.00HBO Digital Group (6 Channels) $11.95 Relocate Outlet (same trip) $10.00Showtime Group (5 Channels) $10.95 Relocate Outlet (separate trip) $15.00Cinemax Group (4 Channels) $9.95 Wiring Within Walls (per outlet) $40.00The Movie Channel Group (3 Channels) $8.95 Digital Converter (same trip) $5.00Starz Group (6 Channels) $8.95 Digital Converter (separate trip) $10.00Encore Group (6 Channels) $5.95 Reconnect Residential Service $20.00Digital Basic Tier (35 Video Chs + 45 Audio Chs) $10.95 Other ChargesPackaging Returned Check Charge $25.00Showtime Digital Combo (Show, TMC, Flix & Sundance $12.95 Hourly Service Call $30.00HBO Digital Group and Cinemax Digital Group $19.50 Late Fee $2.95Starz Group (6 channels) $8.95 Franchise Fee (City) 5.00%Encore Group (6 channels) $5.95 FCC Fee (Monthly) $0.00 Digital Premium Discount: (Digital Basic Tier plus) Two Premium A La Carte or Packaged Services $2.00Three Premium A La Carte or Packaged Services $4.00Four or More Premium A La Carte or Packaged Services $6.00

Digital Pay-Per-View Services IN Demand PPV Movies (21 Channels) $3.95Video On Demand Movies $4.50Sports Packages (Varies)Special Pay Per View Events (Varies)

GENEVA FIBER NEWORKVideo Services Rates and Charges


Cable Television Programming ServicesService Rates - 2002

Basic Services Rate Equipment Rental (per month) Rate

Basic Service (31 Channels) $15.79 Basic Only Converter $2.00Expanded Basic Service (25 Channels) $19.69 Non-Basic Only Converter(Non-Rebuild) $3.99Full Basic Service (86 Channels) $35.48 Non-Basic Only Converter (Rebuild) $4.85Plus applicable franchise fees and taxes Digital Converter $4.85

Remote Control $0.30Premium Services

Installation & ServiceHBO $12.99Cinemax $12.99 Install Unwired Home (Aerial within 125 ft.) $43.99Showtime $12.99 Install Prewired Home (Aerial within 125 ft.) $27.99The Movie Channel $12.99 Install Additional Outlet--Initial Install $13.99Starz! & Encore (Digital Subscription) $10.99 Install Additional Outlet-- Separate Trip $21.99

Relocate Outlet $18.99Digital Services Up/Downgrade of Addressable Services $1.99

Upgrade Optional Services--Separate Trip $15.99Digital Basic $12.00 Downgrade Optional Services--Separate Trip $10.99Digital Programming Access Fee $4.99 VCR Connection --Initial Install $5.99Digital Packages: VCR Connection --Separate Trip .$12.99Digital Platinum $76.99 Administrative Fee for Late Payment (Day 30) $2.95Digital Gold $62.99 Administrative Fee for Late Payment (Day 45) $2.00Digital Silver $52.99 Non-Sufficient Funds Charge $20.00Digital Bronze $44.99 Field Collection Fee $20.00Digital Starter (Requires Subscription to Expanded $6.99 Unreturned Non-Addressable Converter $90.00Basic Service) Unreturned Addressable Converter $158.00

Unreturned Digital Converter $318.00Broadband Monthly Magazine $2.99 Unreturned Analog Remote Control $4.00

Unreturned Digital Remote Control $7.19Hourly Service Charge $28.49Trouble Call $16.99

AT&T BroadbandGeneva, Illinois


High Speed Data ServiceResidential Rates and Charges

2002

Services Rate Services RateResidental: w/CATV Residental: No CATV

Platinum Service - Downstream to 3.0 Mbps $64.95 Platinum Service - Downstream to 3.0 Mbps $69.95Gold Service -Downstream to 2.0 Mbps $44.95 Gold Service -Downstream to 2.0 Mbps $49.95Silver Service - Downstream to 1.0 Mbps $34.95 Silver Service - Downstream to 1.0 Mbps $39.95Standard Service - Downstream to 512 Kbps $26.95 Standard Service - Downstream to 512 Kbps $31.95

Other Charges: Other Charges: Additional Email Address (Monthly Fee) $5.00 Additional Email Address (Monthly Fee) $7.50Charge for Data Transfer Over Cap per 50 MB $1.00 Charge for Data Transfer Over Cap per 50 MB $1.50

Installation Services: Installation Services:

Installation (Includes NIC Card & Software) $99.00 Installation (Includes NIC Card & Software) $125.00Installation (No NIC Card & Software) $75.00 Installation (No NIC Card & Software) $100.00Dedicated High Speed Cable Outlet $50.00 Dedicated High Speed Cable Outlet $75.00

Residental Service Packages Residental Service Packages

Platinum Service $64.95 Platinum Service $69.95includes: Speeds Up to 3.0 Mbps Downstream and includes: Speeds Up to 3.0 Mbps Downstream and 512 Kbps Up, Dynamic IP Address, 512 Kbps Up, Dynamic IP Address,Up to 4 Email Addresses, 7.5 MB Personal Web Up to 4 Email Addresses, 7.5 MB Personal WebSpace, Data Transfer Cap of 10 GB Space, Data Transfer Cap of 10 GB

Gold Service $44.95 Gold Service $49.95includes: Speeds Up to 2.0 Mbps Downstream and includes: Speeds Up to 2.0 Mbps Downstream an 256 Kbps Up, Dynamic IP Address, 256 Kbps Up, Dynamic IP Address,Up to 3 Email Addresses, 5 MB Personal Web Up to 3 Email Addresses, 5 MB Personal WebSpace, Data Transfer Cap of 7.5 GB Space, Data Transfer Cap of 7.5 GB

Silver Service $34.95 Silver Service $39.95includes: Speed Up to 1.0 Mbps Downstream includes: Speed Up to 1.0 Mbps Downstreamand 128 Kbps Upstream, Dynamic IP Address and 128 Kbps Upstream, Dynamic IP AddressUp to 3 Email Addresses, 3 MB Personal Web Up to 3 Email Addresses, 3 MB Personal WebSpace, Data Transfer Cap of 5 GB Space, Data Transfer Cap of 5 GB

Standard Service $26.95 Standard Service $31.95includes: Speed Up 512 Kbps Downstream and includes: Speed Up 512 Kbps Downstream and 128 Kbps Upstream, Dynamic IP Address 128 Kbps Upstream, Dynamic IP Address2 Email Address, Data Transfer Cap of 3 GB 2 Email Address, Data Transfer Cap of 3 GB

GENEVA FIBER NETW ORK


High Speed Data ServiceBusiness Rates and Charges

2002

High Speed Data Services Monthly Installation Business Rate Charges Rate Standard Business Service - Level 1 $49.95 Standard Business Service - Level 1 $150.00Standard Business Service - Level 2 $69.95 Standard Business Service - Level 2 $200.00Business Plus Service - Level 1 $89.95 Business Plus Service - Level 1 $300.00Business Plus Service - Level 2 $99.95 Business Plus Service - Level 2 $350.00Business Elite Service - Level 1 $129.95 Business Elite Service - Level 1 $500.00Business Elite Service - Level 2 $169.95 Business Elite Service - Level 2 $550.00Direct Business Service - Customized Quote Direct Business Service - Customized Quote

Other Charges Charge Additional Static Email Address (Monthly Fee) $15.00 Charge for Data Transfer Over Cap per 50 MB $1.50

Monthly Monthly

Business Service Packages Rate Business Service Packages Rate

Standard Service Level 1 $49.95 Standard Service Level 2 $69.95includes: Speeds Up to 512 Kbps Downstream and includes: Speeds Up to 2.0 Mbps Downstream and 128 Kbps Upstream, One Static IP Address 256 Kbps Upstream, One Static IP AddressUp to 4 Email Addresses, 5 MB Web Space Up to 5 Email Addresses, 7.5 MB Web SpaceSpace, Data Transfer Cap of 10 GB Space, Data Transfer Cap of 10 GBInstallation Charge $150.00 $200.00

Business Plus Service Level 1 $89.95 Business Plus Service Level 2 $99.95includes: Speed Up to 512 Kbps Downstream includes: Speeds Up to 2.0 Mbps Downstream and 128 Kbps Upstream, Three Static IP Addresses and 256 Kbps Upstream, Three Static IP AddressesUp to 10 Email Addresses, 10 MB Web Space Up to 10 Email Addresses, 10 MB Web SpaceSpace, Data Transfer Cap of 15 GB Space, Data Transfer Cap of 15 GBInstallation Charge $300.00 $350.00

Business Elite Service Level 1 $129.95 Business Elite Service Level 2 $169.95includes: Speed Up to 2.0 Mbps Downstream includes: Speeds Up to 3.0 Mbps Downstream and 128 Kbps Upstream, Five Static IP Addresses and 512 Kbps Upstream, Five Static IP AddressesUp to 15 Email Addresses, 15 MB Web Space Up to 15 Email Addresses, 15 MB Web SpaceSpace, Data Transfer Cap of 20 GB Space, Data Transfer Cap of 20 GBInstallation Charge $500.00 Installation Charge $550.00

Business Direct ServiceThe City of Geneva can provide customized service tailored to the high speed data needs of growing organizations including fiber connnectivity directly to the business within the designated service area.

GENEVA FIBER NETWORK


Geneva Residential Telephony Packaging and Pricing

A La Carte Basic Standard Family Family Plus A La Carte A La CarteFeatures Rates Service Service Service Service Percentages Avg. Rate

Basic Touch Tone Service-Primary Line $16.95 x x x xBasic Additional Line $12.95 x 15% $1.94911 Free x x x x Call Waiting $4.00 x x x 10% $0.40Caller ID (name and number) $4.00 x x x 7% $0.283 Way Calling $4.00 x x x 3% $0.12Call Forwarding $4.00 x x 3% $0.12Preferred Call Forwarding $4.00 x x 1% $0.04Prioirity Ring $4.00 x x 1% $0.04Distinctive Ring $4.00 x x 1% $0.04Selective Call Blocking $4.00 x x 1% $0.04900/976 Call Blocking Free x x x x 1% Last Call Return $4.00 x x 2% $0.08Speed Dial 8 $3.00 x x 3% $0.09Speed Dial 30 $4.00 x 2% $0.08Non-published number $2.75 $0.00Listing Omitted from Phone Directory Free x x x x Standard Directory Listings Free x x x x Additional Directory Listings $1.55 x 5% $0.08Inside Wire Maintenance $2.00 x 15% $0.30Continuous Redial *66 $2.00 x x x 2% $0.04Anonymous Call Rejection $0.00 x x $0.00Customer Code Restriction $0.00 x x x $0.00Voice Mail $4.00 15% $0.60Voice Mail with Extensions $4.50 x 2% $0.09Voice Mail with Pager Notifications $6.95 2% $0.14Voice Mail with Pager Notifications & Ext. $7.95 x 1% $0.08


Geneva Small Business Telephony Packaging and PricingBasic Standard Business Business Deluxe

A La Carte Business Business Plus Advantage Business A La Carte A La CarteFeatures Rates Service Service Service Service Service Percentages Avg. Rate

Basic Touch Tone Service-Primary Line $24.95 x x x x xBasic Touch Tone Service-Secondary Line $24.95 3% $0.75Basic Additional Line -Roll Over $9.95 $0.00 $1.00 $2.00 $3.00 10% $1.00911 Free x x x x x Call Waiting $6.50 x x x x 5% $0.33Caller ID Deluxe $10.00 x x x 5% $0.50Caller ID Enchanced $15.00 x x 1% $0.153 Way Calling $5.00 x x x x 2% $0.10Call Forwarding - Busy Line $4.25 x x x 2% $0.09Call Forwarding - No Answer $4.25 x x x 1% $0.04Prioirity Ring $9.00 x x x 1% $0.09Distinctive Ring $9.00 x x x 1% $0.09Selective Call Blocking $5.00 x x x 1% $0.05900/976 Call Blocking Free x x x x x Call Return $5.00 x x x 2% $0.10Call Trace $6.50 1% $0.07Speed Dial 8 $4.00 x 3% $0.12Speed Dial 30 $5.00 x x 2% $0.10Non-published number $2.75 1% $0.03Listing Omitted from Phone Directory Free x x x x x Standard Directory Listings Free x x x x x Additional Directory Listings $2.00 x x 5% $0.10Foreign Directory Listings $2.00 x 2% $0.04Inside Wire Maintenance $4.00 x x 25% $1.00Continuous Redial *66 $2.00 x x x x 2% $0.04Anonymous Call Rejection $2.00 x x x $0.00Customer Code Restriction $2.00 x x x x $0.00Voice Mail $15.00 x 10% $1.50Voice Mail with Extensions $17.50 x 2% $0.35Voice Mail with Pager Notifications $20.00 2% $0.40Voice Mail with Pager Notifications & Ext. $22.50 x x 1% $0.23Information at 411 $0.75Courtesy Complete for 411 $7.50


Geneva Service Type Distribution

Residential Category Type Video Telecom Data

Homes Passed 8,052 8,052 8,052 Projected Residential Subscribers 2,738 604 1,062 Service Penetration 34% 8% 13%Video, Telecom and Data Subscribers 145 145 145 Video and Data Subscribers 320 - 320 Video and Telecom Subscribers 280 280 - Telecom and Data Subscribers - 20 20 Video Subscribers - Analog Only Customer 518 - - Video Subscribers - Analog & Digital Video Only Customer 1,475 - - Telecom Only Customer - 159 - Data Only Customer - - 577

Commerical Category Type Video Telecom Data

Commercial Units Passed 1,772 1,772 1,772 Projected Commercial Subscribers 18 220 310 Service Penetration 1% 12% 18%Video, Telecom and Data Subscribers 2 10 10 Video and Data Subscribers 5 - 5 Video and Telecom Subscribers 2 2 - Telecom and Data Subscribers - 50 50 Video Subscribers - Analog Only Customer 5 - - Video Subscribers - Analog & Digital Video Only Customer 4 - - Telecom Only Customer - 158 - Data Only Customer - - 245


City of Geneva Page: 38Geneva, Ilinois FTTH/FTTB Broadband Financial Projections - Base Case 2002Broadband Service Staffing

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10Telecommunications Service EmployeesSwitch Techs 1 1 1 1 1 1 1 1 1 1Overtime eligible 1 1 1 1 1 1 1 1 1 1Field Techs 1 2 2 2 2 2 2 2 2 2Overtime eligible 1 2 2 2 2 2 2 2 2 2Provisioning Reps 1 1 1 1 1 1 1 1 1 1Overtime eligible 2 2 2 2 2 2 2 2 2 2Total Telecommunications Employees 4 5 5 5 5 5 5 5 5 5

Cable Service EmployeesGeneral Managers 0 0 0 0 0 0 0 0 0 0Office Manager 0 0 0 0 0 0 0 0 0 0MIS Director 0 0 0 0 0 0 0 0 0 0Customer Service Representatives 2 2 2 2 2 2 2 2 2 2Support Staff 1 1 1 1 1 1 1 1 1 1Technical Manager (s) 1 1 1 1 1 1 1 1 1 1Headend Technicians 1 1 1 1 1 1 1 1 1 1Construction Manager/Plant Manager 1 1 1 1 1 1 1 1 1 1Broadband Service Technicians 2 2 2 2 2 2 2 2 2 2Installer/Service Technician 2 2 2 2 2 2 2 2 2 2Contract Installers 4 1 1 1 1 1 1 1 1 1Marketing and Sales Manager 1 1 1 1 1 1 1 1 1 1Contract Field Representatives 3 0 1 1 1 1 1 1 1 1Total 18 12 14 14 14 14 14 14 14 14

Total Telecommunications and Cable Service Employees 22 17 19 19 19 19 19 19 19 19


C i t y o f G e n e v a P a g e : 2 0

G e n e v a , I l i n o i s F T T H / F T T B B r o a d b a n d F i n a n c i a l P r o j e c t io n s - B a s e C a s e 2 0 0 2

C a s h F lo w S t a t e m e n t

Y e a r 1 Y e a r 2 Y e a r 3 Y e a r 4 Y e a r 5 Y e a r 6 Y e a r 7 Y e a r 8 Y e a r 9 Y e a r 1 0

V i d e o S e r v i c e s R e v e n u e $ 5 3 7 , 2 0 2 $ 1 ,8 7 9 , 9 2 6 $ 1 ,9 4 1 , 6 2 4 $ 2 ,0 2 3 , 8 7 1 $ 2 ,0 9 0 , 6 7 6 $ 2 ,1 6 0 , 0 8 4 $ 2 ,2 5 1 , 5 8 5 $ 2 ,3 2 6 , 7 5 8 $ 2 ,4 0 4 , 8 7 4 $ 2 ,5 0 6 , 7 4 4

V i d e o S e r v i c e s O p e r a t in g E x p e n s e s $ 9 3 3 , 3 8 3 $ 1 ,7 2 0 , 9 9 8 $ 1 ,7 9 8 , 8 2 2 $ 1 ,8 6 0 , 2 4 0 $ 1 ,9 2 3 , 4 6 1 $ 1 ,9 8 9 , 0 0 0 $ 2 ,0 5 8 , 4 6 5 $ 2 ,1 2 8 , 9 1 6 $ 2 ,2 0 1 , 9 4 0 $ 2 ,2 7 9 , 2 9 9

V i d e o S e r v i c e s C u s t o m e r C a s h F l o w ( $ 3 9 6 , 1 8 1 ) $ 1 5 8 , 9 2 8 $ 1 4 2 , 8 0 2 $ 1 6 3 , 6 3 1 $ 1 6 7 , 2 1 5 $ 1 7 1 , 0 8 4 $ 1 9 3 , 1 2 1 $ 1 9 7 , 8 4 3 $ 2 0 2 , 9 3 3 $ 2 2 7 , 4 4 5

R e s i d e n t i a l H i g h S p e e d D a t a R e v e n u e $ 9 6 , 4 5 0 $ 4 5 4 , 2 1 9 $ 5 7 8 , 0 8 4 $ 6 0 2 , 0 6 3 $ 6 0 9 , 3 2 8 $ 6 1 7 , 0 8 4 $ 6 4 3 , 9 4 5 $ 6 5 2 , 9 0 4 $ 6 6 2 , 3 3 1 $ 6 9 2 , 2 3 9

R e s i d e n t i a l H i g h S p e e d D a t a E x p e n s e $ 9 2 , 1 4 4 $ 2 0 4 , 3 6 9 $ 2 4 5 , 5 8 7 $ 2 5 1 , 5 9 3 $ 2 5 6 , 0 0 5 $ 2 6 0 , 7 4 8 $ 2 6 7 , 5 2 6 $ 2 7 2 , 6 7 4 $ 2 7 8 , 0 1 3 $ 2 8 5 , 5 3 0

R e s i d e n t i a l H i g h S p e e d D a t a C a s h F l o w $ 4 ,3 0 6 $ 2 4 9 , 8 5 0 $ 3 3 2 , 4 9 7 $ 3 5 0 , 4 7 0 $ 3 5 3 , 3 2 3 $ 3 5 6 , 3 3 6 $ 3 7 6 , 4 1 9 $ 3 8 0 , 2 3 0 $ 3 8 4 , 3 1 8 $ 4 0 6 , 7 0 9

C o m m e r c i a l V i d e o a n d H i g h S p e e d D a ta R e v e n u e $ 6 1 0 , 5 5 8 $ 9 1 3 , 1 5 4 $ 9 2 4 , 4 4 6 $ 9 6 3 , 4 7 6 $ 9 7 5 , 0 3 8 $ 9 8 6 , 7 3 8 $ 1 ,0 2 8 , 4 0 2 $ 1 ,0 4 0 , 7 4 2 $ 1 ,0 5 3 , 2 3 1 $ 1 ,0 9 7 , 7 0 7

C o m m e r c i a l V i d e o a n d H i g h S p e e d D a ta O p e r a t i n g E x $ 6 2 , 0 5 2 $ 1 9 6 , 0 5 7 $ 1 9 0 , 4 3 9 $ 1 9 4 , 8 8 6 $ 1 9 6 , 6 0 6 $ 1 9 8 , 3 3 7 $ 2 0 3 , 0 3 6 $ 2 0 4 , 8 2 9 $ 2 0 6 , 6 3 8 $ 2 1 1 , 6 2 1

C o m m e r c i a l C a s h F lo w $ 5 4 8 , 5 0 6 $ 7 1 7 , 0 9 7 $ 7 3 4 , 0 0 7 $ 7 6 8 , 5 9 0 $ 7 7 8 , 4 3 1 $ 7 8 8 , 4 0 1 $ 8 2 5 , 3 6 6 $ 8 3 5 , 9 1 4 $ 8 4 6 , 5 9 3 $ 8 8 6 , 0 8 6

T e l e c o m m u n i c a t i o n s R e v e n u e $ 6 1 8 , 7 2 6 $ 2 ,2 6 3 , 1 0 5 $ 2 ,3 3 4 , 7 9 8 $ 2 ,4 5 1 , 5 5 1 $ 2 ,5 7 3 , 6 6 2 $ 2 ,7 0 2 , 1 4 2 $ 2 ,8 3 6 , 9 6 3 $ 2 ,9 7 8 , 9 5 9 $ 3 ,1 2 7 , 0 1 5 $ 3 ,2 8 4 , 2 0 0

T e l e c o m m u n i c a t i o n s E x p e n s e s $ 5 1 4 , 3 2 3 $ 1 ,0 2 6 , 2 4 3 $ 1 ,0 0 9 , 1 3 8 $ 1 ,0 4 5 , 1 9 0 $ 1 ,0 8 1 , 7 8 5 $ 1 ,1 2 0 , 0 7 7 $ 1 ,1 6 0 , 6 5 9 $ 1 ,2 0 2 , 1 8 2 $ 1 ,2 4 5 , 2 2 1 $ 1 ,2 9 1 , 1 7 4

T e l e c o m m u n i c a t i o n s C a s h F l o w $ 1 0 4 , 4 0 3 $ 1 ,2 3 6 , 8 6 2 $ 1 ,3 2 5 , 6 6 0 $ 1 ,4 0 6 , 3 6 1 $ 1 ,4 9 1 , 8 7 7 $ 1 ,5 8 2 , 0 6 5 $ 1 ,6 7 6 , 3 0 4 $ 1 ,7 7 6 , 7 7 7 $ 1 ,8 8 1 , 7 9 4 $ 1 ,9 9 3 , 0 2 6

T o t a l R e v e n u e $ 1 ,8 6 2 , 9 3 6 $ 5 ,5 1 0 , 4 0 5 $ 5 ,7 7 8 , 9 5 2 $ 6 ,0 4 0 , 9 6 1 $ 6 ,2 4 8 , 7 0 3 $ 6 ,4 6 6 , 0 4 8 $ 6 ,7 6 0 , 8 9 5 $ 6 ,9 9 9 , 3 6 3 $ 7 ,2 4 7 , 4 5 0 $ 7 ,5 8 0 , 8 8 9

T o t a l O p e r a t i n g E x p e n s e $ 1 ,6 0 1 , 9 0 3 $ 3 ,1 4 7 , 6 6 7 $ 3 ,2 4 3 , 9 8 6 $ 3 ,3 5 1 , 9 0 9 $ 3 ,4 5 7 , 8 5 7 $ 3 ,5 6 8 , 1 6 2 $ 3 ,6 8 9 , 6 8 5 $ 3 ,8 0 8 , 6 0 0 $ 3 ,9 3 1 , 8 1 2 $ 4 ,0 6 7 , 6 2 4

E B I T D A $ 2 6 1 , 0 3 3 $ 2 ,3 6 2 , 7 3 8 $ 2 ,5 3 4 , 9 6 5 $ 2 ,6 8 9 , 0 5 2 $ 2 ,7 9 0 , 8 4 6 $ 2 ,8 9 7 , 8 8 6 $ 3 ,0 7 1 , 2 1 0 $ 3 ,1 9 0 , 7 6 3 $ 3 ,3 1 5 , 6 3 8 $ 3 ,5 1 3 , 2 6 6

I n t e r e s t E a r n e d $ 1 8 2 , 2 3 3 $ 3 9 , 9 3 0 $ 5 1 , 8 5 0 $ 7 0 , 7 8 2 $ 8 5 , 3 7 0 $ 9 3 , 2 0 4 $ 1 0 2 , 9 9 3 $ 1 1 5 , 4 4 4 $ 1 2 9 , 8 4 5 $ 1 4 6 , 2 8 5

M u n i c i p a l B o n d - I n t e r e s t $ 4 9 2 , 1 0 0 $ 9 8 4 , 2 0 0 $ 9 8 4 , 2 0 0 $ 9 8 4 , 2 0 0 $ 9 4 9 , 6 2 7 $ 9 0 1 , 6 8 6 $ 8 5 1 , 4 4 2 $ 7 9 8 , 7 8 2 $ 7 4 3 , 5 9 1 $ 6 8 5 , 7 4 8

M u n i c i p a l B o n d - P r i n c i p a l $ 0 $ 0 $ 0 $ 4 8 1 , 4 2 7 $ 9 9 7 , 4 2 8 $ 1 ,0 4 5 , 3 6 8 $ 1 ,0 9 5 , 6 1 3 $ 1 ,1 4 8 , 2 7 2 $ 1 ,2 0 3 , 4 6 3 $ 1 ,2 6 1 , 3 0 6

M u n i c i p a l B o n d - T o t a l $ 4 9 2 , 1 0 0 $ 9 8 4 , 2 0 0 $ 9 8 4 , 2 0 0 $ 1 ,4 6 5 , 6 2 7 $ 1 ,9 4 7 , 0 5 5 $ 1 ,9 4 7 , 0 5 5 $ 1 ,9 4 7 , 0 5 5 $ 1 ,9 4 7 , 0 5 5 $ 1 ,9 4 7 , 0 5 5 $ 1 ,9 4 7 , 0 5 5

N e t O p e r a t i n g C a s h F l o w ( $ 4 8 , 8 3 4 ) $ 1 ,4 1 8 , 4 6 7 $ 1 ,6 0 2 , 6 1 6 $ 1 ,2 9 4 , 2 0 7 $ 9 2 9 , 1 6 2 $ 1 ,0 4 4 , 0 3 5 $ 1 ,2 2 7 , 1 4 8 $ 1 ,3 5 9 , 1 5 3 $ 1 ,4 9 8 , 4 2 8 $ 1 ,7 1 2 , 4 9 7

C u m m u l a t iv e C a s h F l o w ( $ 4 8 , 8 3 4 ) $ 1 ,3 6 9 , 6 3 3 $ 2 ,9 7 2 , 2 4 9 $ 4 ,2 6 6 , 4 5 6 $ 5 ,1 9 5 , 6 1 8 $ 6 ,2 3 9 , 6 5 3 $ 7 ,4 6 6 , 8 0 1 $ 8 ,8 2 5 , 9 5 3 $ 1 0 , 3 2 4 , 3 8 1 $ 1 2 , 0 3 6 , 8 7 8

O p e r a t i n g E x p e n s e R a t i o 8 6 % 5 7 % 5 6 % 5 5 % 5 5 % 5 5 % 5 5 % 5 4 % 5 4 % 5 4 %

O p e r a t i n g I n c o m e R a t i o 1 4 % 4 3 % 4 4 % 4 5 % 4 5 % 4 5 % 4 5 % 4 6 % 4 6 % 4 6 %

D e b t S e r v i c e C o v e r a g e R a t i o 0 .0 0 0 .0 0 2 .6 3 1 .8 8 1 .4 8 1 .5 4 1 .6 3 1 .7 0 1 .7 7 1 .8 8

R a t e o f R e t u r n o n D e p r e c i a t e d A s s e t s 2 .5 8 % 1 4 .6 7 % 1 6 .7 0 % 1 8 .9 5 % 2 1 .0 0 % 2 3 .4 0 % 2 6 .7 9 % 3 0 .3 6 % 3 4 .7 7 % 4 1 .0 9 %

O u ts t a n d in g D e b t R a t i o t o A s s e t s 0 .9 5 0 .9 6 0 .9 8 1 .0 0 1 .0 3 1 .0 8 1 .1 4 1 .2 3 1 .3 3 1 .4 8

C a b l e S e r v i c e s P e r c e n ta g e o f T o t a l R e v e n u e 6 7 % 5 9 % 6 0 % 5 9 % 5 9 % 5 8 % 5 8 % 5 7 % 5 7 % 5 7 %

T e l e c o m S e r v i c e s P e r c e n t a g e o f T o t a l R e v e n u e 3 3 % 4 1 % 4 0 % 4 1 % 4 1 % 4 2 % 4 2 % 4 3 % 4 3 % 4 3 %

C a s h o n H a n d $ 2 ,4 0 0 , 1 3 4 $ 3 ,4 5 6 , 6 8 6 $ 4 ,7 1 8 , 8 1 8 $ 5 ,6 9 1 , 3 3 9 $ 6 ,2 1 3 , 6 2 2 $ 6 ,8 6 6 , 1 6 8 $ 7 ,6 9 6 , 2 6 0 $ 8 ,6 5 6 , 3 1 4 $ 9 ,7 5 2 , 3 5 2 $ 1 1 , 0 5 8 , 9 6 7


C ity of G eneva Page: 22

G eneva, Ilinois FT T H /FT T B B roadband Financial Projections - B ase C ase 2002

Sources and U ses

Y ear 1 Y ear 2 Y ear 3 Y ear 4 Y ear 5 Y ear 6 Y ear 7 Y ear 8 Y ear 9 Y ear 10

Sources

Begin C ash on Han d $0 $2,400,134 $3,456,686 $4,718,818 $5,691,339 $6,213,622 $6,866,168 $7,696,260 $8,656,314 $9,752,352

Paid In C apita l - Broadban d Service Provider $100,000 $0 $0 $0 $0 $0 $0 $0 $0 $0

Reven ue Bond Issue Proceeds - C apita l Budget $18,091,348 $0 $0 $0 $0 $0 $0 $0 $0 $0

Reven ue Bond Issue Proceeds - C apita lized In terest $1,968,400 $0 $0 $0 $0 $0 $0 $0 $0 $0

Reven ue Bond Issue Proceeds - D ebt Service Reserve $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

C ost of Reven ue Bon d Fin ancin g $174,048 $0 $0 $0 $0 $0 $0 $0 $0 $0

O rigin al Issue an d Un derwriters D iscoun t $257,736 $0 $0 $0 $0 $0 $0 $0 $0 $0

Reven ue Bond Finan cin g In surance $109,816 $0 $0 $0 $0 $0 $0 $0 $0 $0

E xcess Revenue Bon d Proceeds $118,652 $0 $0 $0 $0 $0 $0 $0 $0 $0

Subordinated D ebt - Broadban d Service Provider $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

In terest E arned $182,233 $39,930 $51,850 $70,782 $85,370 $93,204 $102,993 $115,444 $129,845 $146,285

Utility Plan t Im provem en t Fun d $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

E BIT D A $261,033 $2,362,738 $2,534,965 $2,689,052 $2,790,846 $2,897,886 $3,071,210 $3,190,763 $3,315,638 $3,513,266

T otal Sources $21,263,266 $4,802,802 $6,043,501 $7,478,652 $8,567,555 $9,204,712 $10,040,370 $11,002,468 $12,101,797 $13,411,903

U ses

C apital E xpen ditures $17,729,431 $361,916 $340,483 $321,686 $406,879 $391,490 $397,055 $399,099 $402,390 $405,882

O perating Loss $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Reven ue Bond Issue In terest $492,100 $984,200 $984,200 $984,200 $949,627 $901,686 $851,442 $798,782 $743,591 $685,748

Reven ue Bond Prin cipal Reduction $0 $0 $0 $481,427 $997,428 $1,045,368 $1,095,613 $1,148,272 $1,203,463 $1,261,306

C ost of Reven ue Bon d Fin ancin g $174,048 $0 $0 $0 $0 $0 $0 $0 $0 $0

O rigin al Issue an d Un derwriters D iscoun t $257,736 $0 $0 $0 $0 $0 $0 $0 $0 $0

Reven ue Bond Finan cin g In surance $109,816 $0 $0 $0 $0 $0 $0 $0 $0 $0

Subordinated D ebt - Broadban d Service Provider In tere $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Subordinated D ebt - Broadban d Service Provider Prin c $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Reim bursem en t - Broadban d Service Provider $100,000 $0 $0 $0 $0 $0 $0 $0 $0 $0

Utility Plan t Im provem en t Fun d $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Property T ax E xpen se $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

G G Fun d T ransfer $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

T otal Uses $18,863,131 $1,346,116 $1,324,683 $1,787,313 $2,353,933 $2,338,544 $2,344,110 $2,346,153 $2,349,444 $2,352,936

E nd C ash on Han d $2,400,134 $3,456,686 $4,718,818 $5,691,339 $6,213,622 $6,866,168 $7,696,260 $8,656,314 $9,752,352 $11,058,967

T otal A m ount of R evenue B ond Financing: $20,720,000


Project Financing Assumptions

Revenue Bonds Issued by the City of Geneva with a General Obligation Pledge4.75% Net Interest CostInterest Only for 3 YearsInterest Capitalized for 2 YearsAmortized for Additional 15 Years


Project Capitalization Assumptions

• Capital Budget $18,091,348• Capitalized Interest $1,968,400• Underwriter’s Discount $257,736• Bond Issuance Cost $174,048• Bond Insurance $109,816• Excess Proceeds $118,652• Total Bond Issue $20,720,000


Strategic Next Step Options

If City Council elects to proceed:1. Research and define financing options.2. Pursue partnering arrangement with

neighboring municipal entities or service providers.

3. Hold public referendum.4. If majority vote, proceed to develop

system.


Broadband Network Development

Phase I – Prior to Bond Issue Closing• Initiate Revenue Bond Financing• Vendor Selection• Mapping, Engineering and DesignPhase II – After Bond Issue Closing• Technical and Customer Service Staffing• System Construction• Finalize Service Offerings and Rates• Sales and Marketing Strategic Planning

city of geneva, illinois broadband initiative

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