Chelan County PUD Networks Seattle Task Force on Broadband and Telecommunications

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Chelan County PUD NetworksSeattle Task Force on
Broadband and Telecommunications
December 8, 2004
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Overview of Chelan County PUD

• The County
• 2920 square miles
• Geographically diverse
• Chelan PUD
• Serves 38,000 electric customers
• Operates 3 Hydroelectric Dams
• 600-700 employees (some seasonal employees)
• Separate fiber/telecom department
• 27 Employees, Staff and Labor
• Responsible for internal and external telecom

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Getting Started

• PUD Internal Needs
• June 2000 The wholesale model
• 12 Service providers
• Public/Private partnership
• Developed Business Plan
• Examined technologies
• FTTP
• Wireless
• BPL
• Others
• The Pilot programs

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Status/Future Plans

• Pre-2003
• Constructed backbone
• Placed distribution nodes throughout the county
• Created I-NET
• 2003
• Added telephone service to network
• Extended fiber drops to over 3,000 premises
• 2004
• Added 5,000 new fiber optic premise drops
  bringing total to over 8,000
• Planning for video (CATV) on the network
• Test areas for alternative technologies
• By 2008
• Fiber drops to 30,000 homes and businesses (75
  of County)
• Remaining 25 by 2012

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Financial Model

• Key financial milestones
• Maximum debt projected to be 81 million in 2012
• Revenues of 1.6 million in 2004
• Revenues exceed OM expenses in 2005
• Revenues exceed OM and Interest expenses in 2008
• Cash flow positive in 2013

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Key Assumptions

• Take Rates

Low is 2003, high is 2008 and beyond

• Costs
• Cost per fiber drop - 1,000
• CPE cost per end-user sub 1,000

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End-User Services

• Affordable, high quality services
• Internet
• Faster than dialup, Cable or DSL Up to 1Gbs
  up/down for businesses, 10Mbs up/down for
  residential
• Telephone
• Number portability
• No new wiring required
• Television
• Standard TV (CATV), High Definition TV (HDTV)
• Video on Demand (future)
• Business
• Point-to-Point VLAN services
• DS-1 through OC-48 transport services
• Dark fiber leasing

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Pushing to the Edge

• Alternative technologies
• Broadband over Power Line
• Limited bandwidth
• Immature technology
• Interference issues
• Great for areas with no other options
• Wireless
• Combination of technologies
• Not the end game
• Reaching out to very rural areas

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Service Providers

• A key to our success
• Provide end-user services, support and billing
• Staff dedicated to fiber related customer
  service
• Provide end-user marketing services

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• Questions or Comments?

See http//www.chelanpud.org/fiber for more
information