Small Cable System Thrives Massachusetts Telecommunications Symposium Shrewsbury Electric and Cable Operations Thomas Josie July 26, 2004 Conclusion Municipal entities can successfully build/own/operate “State of the Art Broadband System” Rates and services are competitive with industry Financial return to Town, ancillary benefits, and Municipal Fiber Network surpasses alternatives. * (SELCO is an incumbent operator without competition) 07/26/04 Page - 2 What We Offer 07/26/04 Page - 3 Traditional Analog & Digital Cable Services HD TV Personal Video Remote (PVR) Services Video On Demand Broadband Internet - Residential/Business Services Municipal Fiber Network Municipal Fiber Network 07/26/04 Page - 4 Phones, Voice Mail – For Town Government, Schools, SELCO Internet Service – Town Government, Schools Data Network – All Municipal Buildings Video Between Buildings PEG use for Remote Shoots Public Safety - Radio Repeaters Value Added to Community Lower Rates for Video Services Local Control 07/26/04 Page - 5 Customers Save $2M Annually Excellent Relationship with Issuing Authority Financial Benefits to Town 5% of all Revenue (Including Internet) 3% for Public, Education, Government Access Value Added to Community Superior Customer Service Municipal Fiber Network Page - 6 Joint Operating Committee Town, School, SELCO Town Website 07/26/04 One-Stop Shopping - Offices in the Town Hall www.Shrewsbury-MA.gov Keys to Success 07/26/04 Page - 7 Apply business/investment principles Know Your Market – Keep it Local Offer Competitive Services – Technology & Price Integrate with Community – Schools, PEG Access, Local Businesses, Town Government Customer Service – Keep Control! Use Proven Technology Vitals Homes Passed Basic Subs Internet Customers Miles of Plant System Architecture Annual Revenue (2003) 07/26/04 Page - 8 13,900 11,870 (85% Penetration) 5,735 (41% Penetration) 190 mi HFC 860 MHZ 250 Homes/Node $7.6 M Vitals - Rates Expanded Basic (72 ch.) $30.55* Digital, Expanded Basic Converter, VOD, Music, PPV (153+ ch.) $42.50* Premium (HBO) $10.95* *No extra Taxes or Fees 07/26/04 Page - 9 Policy to Ponder Who Should Control Essential Municipal Infrastructure? -Thanks for Listening 07/26/04 Page - 10