Fiber to the Home

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www.diamondnetok.com
Fiber to the Home Sallisaw Municipal
Authority Sallisaw, Oklahoma Needs Assessment
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SALLISAW THE COMMUNITY

• Located in Eastern Oklahoma
• Located at intersection of I-40 and U.S. Hwy 59 S
• First major city entering Oklahoma from the East

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• SALLISAW THE COMMUNITY
• Population 8,000 (2000 Census)
• Median family income 24,821 (2000 Census)
• 3,600 residential homes 600 businesses
• Several commercial businesses different sizes
• Council/Manager form of government
• City Commissioners serve as Trustees of SMA
• Public power community
• City provides traditional utility services
  including a municipal solid waste facility

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• SALLISAW THE COMMUNITY
• Sallisaw is home to one major industry and three
  small industries.
• Satellite site for Carl Albert State College
• Four public school locations
• Indian Capital Technology Center
• Four banks
• Sequoyah Memorial Hospital
• Cherokee Nation Indian Clinic
• Blue Ribbon Downs (horse racing)
• Soon to be home to two Indian casinos

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• OBJECTIVES OF CITY LEADERSHIP
• Ensure robust availability of broadband services
• Significantly improve existing services
• Diversify revenues beyond electric and sales tax
• Keep revenues in community
• Excess goes to other government services
• Economic development
• Enhance education and information availability

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• A NEED FOR IMPROVED VIDEO SERVICES
• Archaic 450 MHz coax system, 20 years in age
• Unreliable in foul weather
• Limited on number of channels provided
• 48 with expanded basic at time of assessment
• No high-definition programming
• Limited digital programming
• No ownership foundation (several owners over 10
  years)
• Bleak outlook on improving system
• No upgrades to system for several years

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• A NEED FOR BROADBAND INTERNET (2003 NEEDS)
• 52 of Sallisaw households use the Internet at
  home
• Most limited to dial-up
• Most of these used additional phone lines for
  access
• Business use of T1 lines very expensive
• Cable modems not available
• No DSL available
• After cable modems and DSL were launched
• Cable modems limited to 512Kbps
• 128K / 128K at 39.99 per month
• 512K / 128K at 49.99 per month
• Limited DSL availability

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• A NEED FOR IMPROVED TELEPHONE SERVICES
• Local calling area limited to Sallisaw exchange
  only.
• Additional services came with a cost
• Call waiting, caller ID, 3-way calling etc
• Customer service typical of incumbents
• Customer satisfaction for telephone was high.
• DiamondNet offering of phone services became more
  strategic
• compared to being market driven. (Triple Play
  Services)

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Methodology Used During Feasibility Study

• Total mass market sample size of 350 respondents
  to achieve a 95 confidence interval
• 300 residential homeowners or renters
• 50 small businesses
• Sample tested at different price points compared
  to incumbents( Same cost, 10 Less, 20 Less )

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What the feasibility study uncovered

• Lack of competition among providers serving
  commercial and government accounts
• No competition for commercial ISP services
• Commercial accounts lacked funding to acquire
  additional bandwidth needed (existing services
  costly)
• Reliability and cost most important to respondents

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Sector Future Needs/Expectations
Banking Video-conferencing
Health Care Expand phone lines and Internet connections. Interested in VoIP. Video applications to present health topics to consumers
Education/Non Profit VoIP and want to set up a WAN to connect 4 campuses. Setting up redundant links between campuses. PBX for phone services.
Future Needs
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What would you like to see most improved?
(Residential)
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What level of download speed would your business
require?
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Desired Internet Speed If Available
(2003-2005) (Percent of Respondents. Without
Price Reference)
Sallisaw is the June 2003 point
Respondents now aware of faster speeds
available More respondents want faster Internet
today
Source Uptown Services
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• Summary of Needs and Desires of Sallisaw
• More channels
• More community access channels
• Lower video prices and reliability
• More access to broadband Internet
• Alternative to T1 lines
• Lower phone prices
• Ability to video conference
• More competition
• DiamondNet services have exceeded these needs

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