St. Joe Valley MetroNet Technology Symposium

May 27, 2004

Values of a Metropolitan Area Network Initiative

Introduction

Bryan Baker, partner with CCI. A locally based tele-management company the provides telecommunication cost savings and management solutions for the business and service provider industry nationwide.

Intangible ValuesEvaluation of the “soft” costs and benefits

Tangible Values

Correlation to real dollar figures

St. Joe Valley MetroNet Technology Symposium – page 1

Intangible Values1) Network Accessibility

Local Arena

National Arena

Transcontinental Fiber Facilities

2) Network Security

3) Network Integrity and Redundancy

Loop architecture

4) Choice and Control of Service

- Layer 1 Secure- Carrier Grade Facility

Tangible Values

Basic Broadband Services ModelTelecommunication Transmission Mediums Fiber or Wireless

Carrier Grade Lit Telecommunication Services

Consumer Grade Lit Communication Services

Cost comparison of metro dark fiber (Telecom Medium)

@ $1,000 Chicago@ $2,500 in Indianapolis@ $3,500 in South Bend

Cost comparison of current high end lit broadband services (Lit Carrier Grade specifically Gigabit Ethernet)

@$2500 Chicago@$3750 Indianapolis@$5000 South Bend

Economic Development & Retention

Conclusions Q&A

- Light travels at 186,000 miles per second

StatisticsCost to build from scratch: $3,500,000Successful reference communities

-Cary North Carolina -Buffalo Minnesota -Evansville IN-Indianapolis IN -Shelbyville IN -Lafayette IN-Hammond IN -LaGrange Georgia -Columbus IN-Pasadena California -Milwaukee Wisconsin –Cleveland OH-South Dundas, Canada -Cincinnati Ohio - Chicago IL

Economic Impact Case Study South Dundas CanadaSouth Dundas Township is a community of approximately 11,000 located 70 kilometers south of Ottawa. The Township officially launched their fiber network in July 2001. As of August 2002,

the South Dundas Economic Development Commission has documented the following impacts:

-537 new jobs -Increased real estate development-Increased retail sales-Projections are $16.7 million increase in retail sales-145 person years of employment-$2.2 million in Federal Tax revenue-$1.6 million in Provincial tax revenue

St. Joe Valley MetroNet Executive Briefing

May 24, 2004

Introduction Project History

Business CaseMetro-morphisis

Today’s Agenda

Current Broadband SituationBroadband Defined: The ability to move electronic data in large quantity

Components: 1) Customer Provided Equipment at Customer Site 2) Local Access (terrestrial and/or wireless)

3) Local Access Points 4) Available Public Network Service Providers

St. Joe Valley MetroNet Executive Briefing – page 1

St. Joe Valley MetroNet Executive Briefing – Page 2

Broadband Users

Local Access Loop

Access Points

Network ServiceProviders

Compelling CircumstancesIf left to develop under current market conditions, the local broadband

access market will most likely continue to be primarily under a single source provider’s service, cost, and regulatory agenda.

Proactive Opportunity Create a platform that capitalizes on unique strategic assets by building a provider neutral broadband access system.

St. Joe Valley MetroNet Executive Briefing – Page 3

Plan of Action Create St. Joe Valley MetroNet Inc. Installs and manages fiber in city conduits

Contracts with businesses, institutions, municipalities, and service

providers.

Exclusive Invitation to InvestFinancial investment as founding member

Return on InvestmentSeat on Board – Control SJVM policy and strategy

Substantial Cost Savings against market rates

Community Impact

Conclusions – Q&A

St. Joe Valley MetroNet Executive Briefing – page 4

St. Joe Valley MetroNet Executive Briefing – Page 5

Initial Cost Estimates for Construction and Operation

ConstructionTotal Cost of Construction of Backbone Loop A: $1,926,272City of South Bend Commitment to Loop A: $ 700,000Net Cost of Loop A to SJVM: $1,126,272Total Miles for Loop A: 16.3Cost per Mile: $ 69,096Total Fiber Count: 144Total Cost per Fiber Mile: $ 479

Initial Number of Founding Members 5Per Founding Member Initial Investment for Construction $ 225,254

Operation (Initial 3 year estimate)Total Operating Costs $ 487,225Total Operating Costs per Mile $ 1,127Total Operating Costs per Fiber Mile $ 69Per Founding Member Initial Investment for Operation $ 97,445

Total Investment Per Founding Member: $ 322,699

Scale: 1 inch = 1.7 miles

Proposed SJVM Network

Red/Orange = Fiber PullYellow = New Conduit/FiberBrown = Future Conduit/Fiber

Loop C

Loop B

Loop D

Loop A