Fiber Update - Henry County

March 5, 2012
9:00 AM
 The
 The solution
 Why fiber is “future proof”
 What is needed, next steps
 Current
 Level
of Service
 Economic
Henry County BOC
HCBOC total:
Henry County BOE
HCBOE toal:
Henry County WSA
HCWSA total:
2011 2012 Estimates
Schools currently have .0015 Mbps per student
of Internet bandwidth or about 1/1000th what
home broadband delivers.
◦ Equates to about 11.3 Mbps per school
Henry County currently have .02 Mbps per
employee of Internet bandwidth or about 1/100th
what home broadband delivers.
◦ Equates to about 1.1 Mbps per building.
◦ Henry County government utilizes more bandwidth per
employee because we also service many E-Services
directly to Citizens, such as Video of Board Meetings,
Electronic access to Tax information and payments,
Many areas of the county are not serviceable at
all, including most parks.
Henry County has been eliminated for consideration
because of lack of redundant suppliers of Fiber Optics.
Cite Douglas County, Microsoft Datacenter most recently.
Targeted Industry Study – Cite Study
◦ Firms are beginning to near-shore customer-care and processing
centers for complex support and solutions management function
◦ Proposed new investment in fiber telecommunications infrastructure
would provide a transformative new asset
◦ Digitization of every form of information continually opening new
opportunities for entrepreneurs and innovators
Flexibility and ability to serve UN-Served
locations such as Mount Carmel Park Soccer
Complex, traffic signals, etc.
10 times the bandwidth for less cost than is
currently being paid for service.
Provides Private Sector opportunity for
Economic Development (Wholesale of Dark
Fiber Only – NO services).
Dark Fiber – Fiber that has not been attached to any
equipment, and provides no utility or benefit without
equipment. No services are provided over dark fiber.
Interconnect – Connections made from one building to
another. This is often called a LAN or Local Area Network,
sometimes called a MAN, or Metropolitan Area Network.
Allows transmission of data from one building to and from
another. Alone, this is NOT the Internet.
Internet – A global network of interconnected networks.
◦ It is a network of networks that consists of millions of private,
public, academic, business, and government networks, of local to
global scope, that are linked by a broad array of electronic,
wireless and optical networking technologies.
◦ It is over the Internet that computer users are able to access
email, web sites, and many other services.
◦ The HUB of the Internet for our area is located in Downtown
Atlanta, and on a map looks much like transportation network.
Build a Fiber Network, as specified in plan.
Government Only Service for HCBOC, HCBOE, HCWSA, Cities and
other government entities optional (their choice).
Operations of the network would be outsourced to a company
experienced in running such a network.
Any surplus capacity (i.e. Fiber strands) would be offered for
lease in a Non-Discriminatory fashion at market rates for
wholesale dark fiber access. (limit of 20% available to any single
company or subdivisions including parent/child of company)
◦ Any revenue to be used to pay down debt service and/or to expand
network for economic development and/or education.
◦ Note: Due to construction methods, petroleum costs, labor costs, etc. It
can actually be less expensive to buy MORE fiber than less.
 Example: A 4 strand Fiber Cable costs about $110 per strand for 1000 Feet.
A 144 strand Fiber Cable costs about $16 per strand for 1000 feet. When
bought in bulk these numbers go down even more.
 Most of the cost associated with a Fiber Optic network is the LABOR and
permitting costs, not the raw material.
Total Cost = $14,000,000 financed at 2.5% for 15 years.
Variable or Recurring costs –
◦ Principle and Interest = $1,143,590.50
◦ Annual Operating Expenses = $331,000
Total Annual Expenses = $1,474,590
15 Years, and we own the whole thing. Then the
Government, Schools, expenses go to the operating
costs only of $331,000 per year.
Savings Per Year after payout = $1,169,000
Level of Service increased 10 X current levels for
Internet Access and 50 X for backbone infrastructure.
◦ Each government facility and school would receive 100 Mbps
of Internet on a 1 Gigabit Dedicated Fiber Network
The laws of physics limits the capacity that
wireless can accommodate in a terrestrial setting.
There is a 2.2 second time delay for satellite
transmissions (due to the distance and the time it
takes signals to be routing to and from earth) –
this is called “latency”.
Speed of light – anything faster?
Wave-division multiplexing – means one strand
of fiber can simultaneously transmit signals at
different wave lengths.
Staff seeks approval to pursue Letters of
Commitment from HCBOE, HCWSA
◦ Other letters of commitment from other government
entities (Cities, GDOT, etc.)
Staff seeks approval to move forward with
financing options to bring back to the Board for
further discussion.
Staff seeks approval to engage Rural Broadband
to update the business plan – removing the
commercial component.
Thank You.
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