Entering the Broadband Business

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Entering the Broadband Business
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Owensboro

• Is located in Western Kentucky.
• 54,000 Citizens.
• Is on the Ohio River.

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OMU

• Was established in 1900.
• Is fueled by 235 employees.
• Operates its own water treatment and power
  production facilities.
• Serves 54,000 citizens.
• Is the largest municipal utility in the state
  with power production capabilities.

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OMU Customers

• Water 23,963
• Electric 25,423
• Telecom 2,906
• Wireless 2,737
• Fiber 169

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OMU Timeline

• 1895 The residents of Owensboro vote to build
  their own electric utility.
• 1900 Owensboro residents vote 1,942 to 444 to
  build their own deep well system. That same year,
  on December 31 at 425 p.m., electricity flowed
  for the first time from the new city-owned
  electric system.
• 1940 City owned electric and water systems are
  combined to form present-day OMU.
• 1997 OMU installs a fiber optic network around
  the city.
• 1999 OMU begins to provide high-speed fiber
  services to commercial customers.
• 2001 OMU launches a residential wireless pilot
  program.
• 2002 In November of 2002, the commission votes
  to offer wireless Internet access to customers
  throughout the community.
• 2005 OMU is approaching providing service to
  3,000 wireless and 200 fiber customers.

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Quality of Service
(Survey conducted 2004 using random sample
telephone survey)
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Overview

• Does it support the overall mission of the
  business?
• What is the business case for installing the
  infrastructure?
• Support for other business units
• Primary business
• What business model type?
• Community Service
• Business