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Regional Technology Plan Three Bridged Islands Arrowsic...
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Regional Technology Plan
Three Bridged Islands
Arrowsic, Georgetown, Southport
Submitted by:
Mark Ouellette & Susan Corbett
August 10, 2018
207.255.0679
3 Bridged Islands Technology Plan
Table of Contents
Study Background and Structure
Executive Summary
Benefits of Fiber Optics Proposed Fiber Technology
Community Plans Arrowsic
Georgetown
Southport
Backhaul
Cost Saving Measures
Final Thoughts
Grant Funding Resources
Attachment 1: Arrowsic Street-Road Segment Costs
Georgetown Street-Road Segment Costs
Southport Street-Road Segment Costs
Addendums: Digital Inclusion Plan
Broadband Opportunity Council Report
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Background
The three communities of Arrowsic, Georgetown and Southport have come together as a consortium
of the Three Bridged Islands (TBI). The Island Institute has been an indispensable partner to the TBI
Broadband Committee providing behind the scenes advice, resources and guidance with an RFI for
Broadband Planning Services that was responded to by a handful of potential providers. Axiom was
chosen and tasked with providing a plan for deployment of a Fiber-to-the-Home (FTTH) network in all
three communities. TBI Broadband Committee, while independently working in each of their
respective communities did come together on some common goals.
Goals:
Every home be hooked up to the fiber system (equal access for all)
Fiber was the best investment over other technologies that would not stand the test of time
While each community wanted a plan that could stand on its own, their was a recognition
that cost savings could be found by working together to implement fiber networks in each
community simultaneously
The committee was interested in exploring out of the box thinking that might reduce costs
Given these considerations, the report that Axiom has produced followed a Broadband Deployment
Kit methodology that we use to help communities not only plan, but get to implementation and
beyond.
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Executive Summary
This section will give the communities a brief overview of the fiber-mapping path in each of the three
towns and the estimated cost of the overall project. More detailed descriptions will follow in each of
the individual community sections.
The Three Bridged Islands Broadband Committee (TBI Broadband Committee) was concerned that
internet connectivity in each of the three communities was lagging and not keeping up with the
demand of its citizens for better speeds and reliability. At the same time, each community
recognized the digital divide and the real possibility that their internet connectivity was likely not
going to withstand future needs, jeopardizing or hindering the vibrancy in each of the three towns.
Current providers were frustratingly unresponsive, and the hope would be that a new system, would
address the needs of the TBIs for 20 years or more.
Working together
The Three Bridged Island communities by coordinating efforts around the planning, implementation
and operation of a new internet system will enjoy cost savings. While difficult to estimate, it’s
possible that construction costs could be reduced by 10% or more. Additional savings could be
realized through the operational economies of scale that could be achieved. It makes good financial
sense to work together. Axiom has added a Cost Saving Measures section later in this report that
goes into greater detail.
Technology
It has become clear through the process that fiber optics makes the most sense for the Three
Bridged Islands (3BIs) for a number of reasons. These benefits are further illuminated throughout
the report:
Futureproof- the system will be in place for well over twenty years
Growth- the system can accommodate ever increasing demand for more speed, without any
additional investment into the system
Reliability- Fiber is the most reliable technology to deliver consistent bandwidth with little to
no interference to the system- even at peak usage times
Objectives of Internet System
The system will serve every home in all three communities
The system will provide equal access at all locations- no matter where you live you will have
the same choices for service as everyone else
The system is capable of delivering a Gigabyte (1000Mbps) to each home
The system can deliver true symmetrical service- same speed up or down
The proposed system will not exasperate the current situation where parts of each of the 3BI
communities have different levels of service, depending on where your home is located or who your
provider is. This new internet system eliminates this issue.
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Fiber Maps
The maps of all three communities are color coded to help the community understand how Axiom
recommends that road be served.
The Yellow Line is the trunk fiber that will carry the bulk bandwidth throughout the community. This
fiber will have many strands of fiber that will then be offloaded to other fiber that will serve various
neighborhoods and homes.
The Pink Line represents drop cables that will be strung along utility poles that penetrate areas not
served by the trunk line.
The Blue Line represents areas where we believe you can lay the fiber on the ground to serve
residential homes.
Arrowsic Fiber Map
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Georgetown Fiber Map
Southport Fiber Map
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Total Cost of Project
Fiber Materials
$1,227,102
Fiber Labor
$1,255,249
Licensing & Make Ready
$428,980
Replacement Poles (10%)
$507,000
Regen hardware
$637,675
Customer Premise
Hardware & Installation
$2,325,000
Total Estimated Cost
$6,381,006
This estimate relies on a number of assumptions.
Utility pole licensing and Make Ready is an estimated cost per pole. Through the application
process, the licensing agent and all of the current users of the utility poles come together on site (in
each of your communities) and assess each pole and the cost associated with each of the providers
moving their lines to accommodate another provider. We have an average cost per pole estimate,
but until the actual evaluation is undertaken in the licensing process, the actual costs cannot be
determined.
One of the variables in the pole licensing process is the number of poles that may need to be
replaced. There are several reasons for pole replacements, and without individual pole inspections
by the utility, this cost is variable, until the licensing process proceeds.
The other category costs can vary depending on who you choose as a vendor. RFP processes have
brought wildly different estimates to construct a system, but this gives the 3BI Broadband Committee
a touchstone of what costs of building a system in all three communities should generally cost.
Costs of such a system can seem expensive, but when you factor in the benefits and longevity of the
system, it actually will be an investment that will last well beyond traditional community expenditures
of road repair or replacement and large equipment purchases such as a fire truck. The next section
will expand on the benefits of fiber and the attributes that make it a smart, cost effective investment
for the 3BI’s future.
Monthly Operating Revenue and Expenses
For any potential provider to respond to an RFP, the provider must be able to understand their roles
and responsibilities in a public-private relationship with the 3BIs. Below are estimated the number of
homes expected to take service and the gross revenue derived from those customers. The operating
expenses include a reasonable maintenance/break-fix budget that would be set aside for significant
internet system damage that could occur over the life of the system. Creating a rainy-day fund will
help defray significant damage or replacement costs due to utility pole damage or replacement
needed from natural disasters that are weather related, human error such as car crashes that could
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take out equipment or utility poles, or many unforeseen issues that the provider of service would
need to be ready for. Revenue projections, overhead and cost considerations vary from provider to
provider. These are estimates that Axiom has put together to give the 3BI Broadband Committee an
understanding of how revenue might compare to expenses.
Revenue
Axiom believes that a 50% subscription rate is achievable, meaning that every other home that could
get served will take service. This is the national average for FTTH projects. In addition, Axiom
created three rate groups of service and estimated revenue from each rate group.
It is broken down this way:
Speeds Customers and cost Revenue per subscriber rate
25/25Mbps
775 customers @$59.99 $557,907/year
50/50Mbps
335 customers @$69.99 $281,360/year
100/100Mbps
51 customers @ $109.99 $87,510/year
Total Estimated Yearly
Revenue
$926,776.80/year
Revenue estimates of over $900,000 based on 1161 subscribers (50% of homes take service)
Operating Expenses
Operating expenses are the expenses that are incurred by the provider to operate and maintain the
internet system. These expenses include:
Overhead (billing, yearly cost of utility pole licensing, bandwidth, collections, etc.)
System Maintenance (break/fix and operation of equipment)
Onsite support (on-site equipment inspection and replacement at the home)
Technical support (phone support for issues at the subscriber home, includes trouble shooting
and remote equipment diagnostics)
Total estimated yearly cost of maintaining system and subscriber home equipment, and creating
rainy-day fund: $480,000/per year
Yearly revenue and operating expenses seem to indicate the possibility of the system supporting
some portion of a municipal bond that would be needed to build the system.
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Benefits of Fiber Optics
Fiber optic internet systems are the future and Broadband Committees often get questions about the
technology choice or the need for such systems. This section will help community members
understand the benefits of fiber optics and its superiority over other technologies, including DSL and
co-ax cable. Both DSL and cable are serving the majority of your communities now.
Fiber is a long-term investment in a community’s future
Fiber supports 21st century economic opportunities
Fiber leapfrogs communities that are left behind to the front of the pack
Fiber, over the long run, is a less expensive technology
One of the major concerns with fiber systems is the up-front cost. However, over time, other
technologies would need to be replaced, upgraded or will be deemed obsolete. On the other hand,
fiber will allow you to scale the bandwidth delivered as needed, all while using the same fiber
distribution network over a period of decades.
Just one visual example will
underscore the capabilities of a
fiber connection verses a legacy
copper network connection. With
today’s technology, one fiber the
thickness of a human hair can carry
more data that 4,000 top-speed
DSL lines.
Homes that are being served by copper, either through DSL from the phone company, or with co-ax
from the cable company have significant limitations in service because of how each technology
works. In the case of DSL, not only is the driving technology outdated, but the old copper lines are
susceptible to corrosion that can severely impact the reliability of a subscriber connection.
Furthermore, DSL is severely limited in the distance it can push a signal (3-mile maximum), meaning
those homes furthest from the telco equipment are faced with connections that often cannot reach
even a paltry 3Mbps download speed.
In the case of coaxial cable (co-ax), used by TV cable providers, capacity is still an issue, but for
different reasons than with DSL. Compared to a fiber-optic system, cable is not nearly so scalable –
for every step up in speeds, equipment needs to be upgraded both at the home and at the cable
plant. Furthermore, cable systems were designed primarily to push data down to the customer, a
significantly different model than the emerging needs for telecommuting and interactive video, which
require high bandwidth in both directions. Finally, there is a major concern with the fact that cable is
a shared system, meaning that the signal strength you receive is dependent on how much bandwidth
is being drawn by other users that are also connected to that line of cable. Cable companies
commonly oversaturate their subscriber networks by a ratio of up to 100:1, leading to inconsistent
speeds for the end user.
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How it works is the secret to higher speeds
“Broadband” describes the fastest method of delivering high-speed internet to subscribers. While
DSL and cable utilize existing phone and TV infrastructure to transmit data as frequency “vibrations”
over copper wires, fiber networks transmit data using light over specialized cables that contain glass
fiber strands. Light moves at 186,000 miles per second, and this is what enables speeds of 1 Gig
(1000Mpbs) or much more per connection- 100 times faster than a 10Mbps DSL connection and 10
times faster than a 100Mbps cable connection. In addition, both DSL and cable suffer from the
limits of their own technology, making them less than ideal choices into the future.
Wireless is an interesting choice and is certainly being considered in major urban markets where the
density of buildings makes fiber optic cabling expensive and complicated. Wireless service, while
reliable, is not as reliable as fiber optics and can be susceptible to weather conditions and
movement of outdoor equipment due to wind. Wireless also requires a direct line of sight;
obstructions are not a friend of a wireless signal. While it has the capability to be as fast as fiber,
reliability concerns and reliance on line of sight make wireless installations best suited to very dense
urban, or certain rural situations where the physical environment allows for reliable, high speed
wireless systems, where costs make wireless a serious consideration.
Will Fiber Become Obsolete Like other Technologies?
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While we cannot predict the future, all indications are that fiber optics is here to stay for a very long
time. Frankly, this technology has already been used for many, many years, which means that there
are trillions of dollars of fiber installed globally. A whole industry has grown up around how to utilize
fiber to its fullest capacity to make all of our lives better. This industry has proven very good at
developing new electronics to push more and more data through existing fiber lines.
Most people think of fiber as a new technology, but in reality, it has been used for “backbone”
connectivity as far back as the 80s, with hundreds of fiber optic cables running across the sea floor
all around the world.
What is new, is that fiber is starting to be used to serve homes in places like Austin and Chattanooga
and right here in Maine on the islands of Islesboro and Cranberry Isles, where FTTH (Fiber-to-the
Home) networks are being deployed. Because of the extensive network of fiber already deployed
and continuing to be deployed, it is very unlikely that we would see any major shift in market forces
that would make fiber optics obsolete. Most telecom observers believe that 5G cellular technology is
many, many years away from possibly replacing even a traditional DSL or cable connection.
What is in a fiber-optic cable?
An individual optical fiber (the size of a human hair) is surrounded by several layers of material that
strengthen and protect the fiber. A fiber-optic cable can have any number of “fibers” ranging from 1
to several 100s.
Benefits of Fiber Technology
Speed and Capacity. Many experts say that FTTH connections are the only technology with enough
bandwidth to support the projected consumer demands over the next decade.
Future proof. Because of fiber’s capabilities, new technological innovations are being invented every
day to utilize fiber’s superior ability to transport tremendous amounts of data at blazingly fast
speeds. Technologies such as 3D holographic high definition television and gaming will someday be
everyday items in households around the world. FTTH will be able handle the estimated 30 gigabit-
per-second needs of such equipment… and this is just one technology. Think about the new ways
that you use the internet that seem commonplace now that were not even conceived of 10 years
ago.
One delivery system. Right now, a consumer can receive telephone, video, audio, television and
almost any type of data transmission using a single seamless FTTH connection. That trend will
continue as consumers are given increasing array of a la carte choices for how they receive their
various communication and data and streaming choices. Subscribers are also realizing that
receiving bundled services through a fiber connection can save money.
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Reliability. Fiber is the most reliable connection you can have. In surveys across the state of Maine,
the #1 complaint is reliability. An internet connection is becoming a necessity, not a luxury. When
connectivity is interrupted or slowed down unexpectedly or inexplicably consumers are furious that
they cannot accomplish the on-line task, leading to a significant loss of productivity or time.
Community Benefits
Job Creation- There are many examples of fiber networks creating jobs by either supporting existing
businesses or attracting new ones
Business Attraction- When we say business attraction, we really mean businesses that are looking
for the kinds of connections that can move large amounts of data, quickly- architects, designers,
banks and other heavy users
Entrepreneurship- Fiber helps induce young people to locate and work from anywhere
Telemedicine- The medical field and how patients and providers interact is undergoing seismic
changes. One of those changes is the way patients are able to be seen, treated, monitored and are
increasingly being given tools to manage their own health care, right from their home. A fiber
connection has the capacity to manage these data transmission uses, which in turn facilitates our
elders aging in place
Education- Creating equal access for all eliminates “the homework gap” for those students that are
increasingly required to complete assignments on-line but are unable to do so from their home
because of a lack of an adequate internet connection. Adult learners also benefit from on-line
learning options that utilize interactive video or other tools that those with better connections can
access.
Increased Home Values- A Broadband Communities study indicated that FTTH networks increase the
value of a $300,000 home by an average of $5,000-$6,000. Another study by the FTTH Council in
conjunction with the University of Colorado showed that homes with a FTTH connection are worth, on
average, 3.1% more than homes that do not have a fiber connection
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Arrowsic
Fiber Map of North Arrowsic
Fiber Map of Middle Arrowsic
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Fiber Map of South Arrowsic
Red Dots are 911 reported homes, businesses and structures
Yellow line is trunk fiber
Pink line is Drop Fiber on utility poles (less fiber strand count)
Blue/Gray Fiber is same drop fiber, (possibly even less strand count) AND placed directly on
the ground
The type of fiber dictates the cost per foot of that fiber, with the yellow trunk fiber being the most
expensive per foot, the pink, less expensive and the blue/gray being the least expensive.
This plan was built to serve every home in the community and would allow for future growth as
homes were built. Homes that are not directly served by our initial assessment would be served with
additional engineering on a case-by case basis.
Components of Cost of Project
Fiber Materials
Fiber Materials refers to the cost of the trunk cable and associated equipment to hang the cable and
the equipment needed to power the internet system.
Fiber Labor
Fiber Labor refers to the cost of manpower needed to string the fiber along the utility poles.
Licensing and Make Ready
Licensing and Make Ready refers to the cost of applying for utility pole rights and the associated cost
of making the poles ready to accept a new fiber cable. In order to install new fiber optics cable on
utility poles, a licensing process is in place that also evaluates each pole for readiness to accept a
new cable. Each provider (other than the electrical) would move the current lines to accommodate a
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space for a new cable. The cost of this process is estimated in our calculations and can change
depending on the application process costs associated with each pole.
Replacement Poles (10%)
We estimate that 10% of the poles, through the licensing process might need replacement. There
are two major reasons for pole replacements. First, the amount of equipment or utility lines on a pole
deem it necessary to increase the height of the current pole to allow for an additional line to be
placed on it (pole too short). Or the current pole is aged to the point where it would be unsafe to
place the additional line strain on the pole without a replacement pole. (Aged poles). We make an
estimate, but these issues get addressed through the application and Make Ready process.
Regen Hardware
Regen hardware is the equipment that would be used to power the internet system and control each
individual connection through this central system. These costs also include a heated and cooled
utility shack that would house the equipment.
Customer Premise Hardware and Installation
These costs are associated with the equipment needed at each home, the drop cable and the labor
cost associated with each customer installation.
Cost Breakdown by Street or Road segment
Because of the large number of street/road segments, we have included those in an appendix, for
those looking for those costs.
Plan for Arrowsic includes:
Internet system will be built to serve all homes
We assume that 50% of homes will take service- estimated at 122
Potential annual revenue estimated at $112,425
Axiom has not developed a seasonal rate; revenue assumptions are based on all homes
paying the same rate
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Georgetown
Georgetown North Map
Georgetown Middle Map
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Georgetown Middle Lower Map
Georgetown South Map
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Blue Dots are 911 reported homes, businesses and structures
Yellow line is trunk fiber
Pink line is Drop Fiber on utility poles (less fiber strand count)
Blue/Gray Fiber is same drop fiber, (possibly even less strand count) AND placed directly on
the ground
The type of fiber dictates the cost per foot of that fiber, with the yellow trunk fiber being the most
expensive per foot, the pink, less expensive and the blue/gray being the least expensive.
This plan was built to serve every home in the community and would allow for future growth as
homes were built. Homes that are not directly served by our initial assessment would be served with
additional engineering on a case-by case basis.
Components of Cost of Project
Fiber Materials
Fiber Materials refers to the cost of the trunk cable and associated equipment to hang the cable and
the equipment needed to power the internet system.
Fiber Labor
Fiber Labor refers to the cost of manpower needed to string the fiber along the utility poles.
Licensing and Make Ready
Licensing and Make Ready refers to the cost of applying for utility pole rights and the associated cost
of making the poles ready to accept a new fiber cable. In order to install new fiber optics cable on
utility poles, a licensing process is in place that also evaluates each pole for readiness to accept a
new cable. Each provider (other than the electrical) would move the current lines to accommodate a
space for a new cable. The cost of this process is estimated in our calculations and can change
depending on the application process costs associated with each pole.
Replacement Poles (10%)
We estimate that 10% of the poles, through the licensing process might need replacement. There
are two major reasons for pole replacements. First, the amount of equipment or utility lines on a pole
deem it necessary to increase the height of the current pole to allow for an additional line to be
placed on it (pole too short). Or the current pole is aged to the point where it would be unsafe to
place the additional line strain on the pole without a replacement pole. (Aged poles). We make an
estimate, but these issues get addressed through the application and Make Ready process.
Regen Hardware
Regen hardware is the equipment that would be used to power the internet system and control each
individual connection through this central system. These costs also include a heated and cooled
utility shack that would house the equipment.
Cost Breakdown by Street or Road segment
Because of the large number of street/road segments, we have included those in an appendix, for
those looking for those costs.
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Plan for Georgetown includes:
Internet system will be built to serve all homes
We assume that 50% of homes will take service- estimated at 517
Potential annual revenue estimated at $460,378
Axiom has not included a seasonal rate; revenue assumptions are based on all homes paying
the same rate
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Southport
Southport Map-North
Southport Map-Middle
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Southport Map- South
Green Dots are 911 reported homes, businesses and structures
Yellow line is trunk fiber
Pink line is Drop Fiber on utility poles (less fiber strand count)
The type of fiber dictates the cost per foot of that fiber, with the yellow trunk fiber being the most
expensive per foot, the pink, less expensive and the blue/gray being the least expensive.
This plan was built to serve every home in the community and would allow for future growth as
homes were built. Homes that are not directly served by our initial assessment would be served with
additional engineering on a case-by case basis.
Components of Cost of Project
Fiber Materials
Fiber Materials refers to the cost of the trunk cable and associated equipment to hang the cable and
the equipment needed to power the internet system.
Fiber Labor
Fiber Labor refers to the cost of manpower needed to string the fiber along the utility poles.
Licensing and Make Ready
Licensing and Make Ready refers to the cost of applying for utility pole rights and the associated cost
of making the poles ready to accept a new fiber cable. In order to install new fiber optics cable on
utility poles, a licensing process is in place that also evaluates each pole for readiness to accept a
new cable. Each provider (other than the electrical) would move the current lines to accommodate a
space for a new cable. The cost of this process is estimated in our calculations and can change
depending on the application process costs associated with each pole.
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Replacement Poles (10%)
We estimate that 10% of the poles, through the licensing process might need replacement. There
are two major reasons for pole replacements. First, the amount of equipment or utility lines on a pole
deem it necessary to increase the height of the current pole to allow for an additional line to be
placed on it (pole too short). Or the current pole is aged to the point where it would be unsafe to
place the additional line strain on the pole without a replacement pole. (Aged poles). We make an
estimate, but these issues get addressed through the application and Make Ready process.
Regen Hardware
Regen hardware is the equipment that would be used to power the internet system and control each
individual connection through this central system. These costs also include a heated and cooled
utility shack that would house the equipment.
Customer Premise Hardware and Installation
These costs are associated with the equipment needed at each home, the drop cable and the labor
cost associated with each customer installation.
Cost Breakdown by Street or Road segment
Because of the large number of street/road segments, we have included those in an appendix, for
those looking for those costs.
Plan for Southport includes:
Internet system will be built to all homes
We assume that 50% of homes will take service- estimated at 522
Potential Annual Revenue estimated at $404,337
Axiom has not developed a seasonal rate; revenue assumptions are based on all homes
paying the same rate
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Backhaul
Backhaul refers to the bulk bandwidth that would be distributed to each internet subscriber.
Because of the layout of the three communities, Arrowsic and Georgetown could use a different
backhaul provider than Southport.
While we have not yet determined which backhaul provider will be engaged by the ultimate operator
of the system, this part of the system typically comes down to the lowest price, therefore keeping the
Operational Expenses as low as possible, as backhaul is often the largest expense to the provider of
service.
Another consideration with backhaul would be being able to buy several Gigabytes (1 Gig=
1000Mbps) of service that could serve the three communities of the 3BIs. This amount of bandwidth
limits the number of companies able to deliver this amount of wholesale bandwidth.
On the Arrowsic and Georgetown side, FairPoint (now Consolidated Communications) can deliver up
to a 10G circuit to almost any place in either community. Because Consolidated has fiber and
established service in both communities, this is likely the least expensive option. In addition to this
option, the Three Ring Binder runs right by the entrance road to Arrowsic, and its technically possible
to extend a fiber line from the 3 Ring Binder down into Arrowsic where it would connect with the fiber
system we are proposing.
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This is a more expensive option and we would argue that the added benefits of possibly being
attached to the 3 Ring Binder would not outweigh the additional costs associated with bringing fiber
across the bridge to Arrowsic.
For Southport, the options are different. For one, you have existing Spectrum service throughout the
community. Spectrum does offer bulk bandwidth wholesale pricing, but we are not sure if they would
entertain such a purchase, given that the bandwidth would be used to compete against them. This
would have to be explored more fully.
Again, Consolidated Communications has extensive fiber networks across the state and they may be
the least expensive option, if they currently have fiber on the island.
LCI is the local provider and is interested in running fiber to the community or being a bulk
bandwidth provider. This would still require the bridge crossing and is likely more expensive than
provisioning a circuit already on island from Spectrum or Consolidated. However, LCI is quite flexible
and is a known entity in the community and might consider supporting a project with some of the
capital cost of constructing the connection, if there was a long-term benefit to them that would allow
them to recuperate cost over time.
To get a better understanding of cost, a Gigabyte (1000Mbps) of wholesale service would cost in the
range of $2000-$2500 a month.
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Cost Saving Measures
One of the reasons Axiom was hired by the Three Bridged Islands was because of potential cost
savings and innovative ideas through our experience as a constructor and operator of internet
systems. As you are well aware, Axiom prides itself on outside the box thinking that can bring cost
down by saving money in a variety of ways with a focus on three areas:
Combined savings by moving the project forward together
Time Savings realized with some innovative ideas
Cost savings realized by variations to traditional utility pole infrastructure
Through our experience in our current last mile network in Washington County, the fiber construction
we are undertaking on Cranberry Isles and our extensive planning work throughout the state, Axiom
has a reputation for creative ideas, while not compromising on quality or operability. Clients and
customers looking to keep costs down especially appreciate this approach.
As always, you can count on Axiom to be transparent and allow the communities to understand the
tradeoffs, compromises and costs of each and every decision to help them gain a better appreciation
of their unique situation. Axiom believes that every connection counts and that remote, difficult to
serve locations deserve connects that can propel them economically and socially.
Combined Savings by all three communities funding project together
It is hard to estimate the cost savings that could come if the construction contractor would be able to
buy the equipment, the cabling and other parts of the construction in bulk for all three communities.
Perhaps up to 10% of equipment cost. There could also be some savings on the cost of installation,
if the RFP was for all three communities. Even if all three communities build at the same time, the
size of the project remains small, by industry standards. That said, we are confident that some
savings could be derived through bulk purchase.
Of course, these savings would only be realized if all three communities were working with one
construction company. Here’s how these savings might play out.
Let us assume 10,000 feet of fiber optic cabling cost .50/foot, but if you buy 25,000 feet for all
three islands, the cost is .30/foot, producing a savings of $5,000 to the overall project.
Another example; if we were to purchase all of the CWDM equipment at once we might be able to
realize a 10% savings, possibly recovering $10,000-$12,000 in cost than if the equipment was
purchased separately for each town.
Time Savings
We all know the old saying “Time equals money” and that is certainly the case in which we are trying
to limit the trunk fiber, which is the most expensive and difficult to work with, and expand the use of
drop fiber, which is lighter and easier to handle. In addition, in both Arrowsic and Georgetown, we do
believe that time savings are derived by placing fiber on the ground in certain areas, as identified in
our mapping.
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Cost Savings
By using as much drop fiber and on the ground installation as possible, this leads to significant cost
savings also. Every pole you can avoid placing fiber on saves an estimated $450 in make ready cost,
avoid 10 poles= $4500 in savings. In addition, every pole that is avoided that would otherwise need
to be replaced saves $3000/pole, avoiding $30,000 in cost per 10 poles that would not need to be
replaced. These cost savings can really add up.
PLUS, it is more likely that storm issues that affect utility poles will not affect those fiber lines that
are on the ground.
Pros and Cons on placing cable on the ground
There are technical and aesthetic concerns with placement of cable on the ground. And certainly
high-traffic, paved areas where the cable would be more vulnerable to being cut are not ideal
locations to consider this type of installation. In addition, once the fiber is on the ground, we would
then bring the fiber to each home on the ground. People’s yards are more likely areas for fiber to be
cut or damaged by yard equipment.
However, on balance, we would argue that the cost savings associated with fiber on the ground
versus using licensed utility poles to bring the cable aerially is substantial and fiber on poles is just
as likely to be damaged by falling trees or damage to the utility pole by an automobile than by issues
that may affect it on the ground.
Here are some common questions about placing fiber cable on the ground:
It is not electrified in any way and unlike electrical wiring, safe to touch, play with and even
break, with no effect on whoever or however than occurs
It’s stronger than you might think. The cabling we are suggestion is rated to be outdoors,
hung aerially, put on the ground or buried underground
Breaks in the fiber are relatively easy to fix
We have managed on the ground fiber distribution systems (Squirrel Island) and installed
fiber on the ground (Cranberry Isles). In addition, Georgetown has a small section of fiber
that is serving customers that was put on top of the ground
Labor and Equipment
Any local municipal labor or equipment that could help with the installation would potentially save on
equipment rental, and local labor that could be absorbed by each of the communities. Having a
good inventory of local resources and labor can help defray costs to the project.
Operational Expenses
While not directly related to the cost of the construction, having a single operator should reduce
operational expenses, by unifying billing, technical support and other functions, and create better
profits that should help the operator stay viable for many years and make the ongoing investments
necessary to improve service levels and equipment functionality over the life of the system. It is hard
to quantify cost savings, but this is an important part of keeping the system up to date and
functioning at its optimal level.
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Grant Funding Resources
State Grant Funding Resources The ConnectME Authority offers two types of grants - Infrastructure and Community Broadband
Planning Grants. For the purposes of this report, the planning grant is not a consideration. We
would recommend looking toward Infrastructure grants, details can be found here:
http://maine.gov/connectme/grants/
Axiom has extensive knowledge of these grants, and has received over $1Million in funding.
Grant proposals must meet the state standard of 10/10Mbps
Grant limits are suggested, but typically $100,000, which must be matched 1 to 1 with a
combination of cash and in-kind services
Area targeted must be unserved or severely underserved (service that is less than 1.5Mbps
download
Typically, ConnectME grants open for applications annually in the spring.
The Maine Community Foundation has regional grants that can support initiatives up to $10,000.
http://www.mainecf.org/GrantsNonprofits/AvailableGrantsDeadlines/CommunityBuildingGrantProgr
am.aspx
Grants available up to $10,000
Local decision makers by county
Various criteria that needs review
Deadline February 15th of each new year
Northern Boarder Regional Commission Grants, http://www.nbrc.gov. The Commission accepts
grant applications from across the northern border regions of Maine, New Hampshire, Vermont and
New York.
Requires at least a 1 to 1 cash match
Must be tied to quantifiable job creation
Very competitive
Contact: Andrea Smith at (207) 624-9813 or [email protected] for information on
deadlines and program parameters.
Federal Grant Funding Resources
U.S. Department of Commerce- Economic Development Administration (EDA) provides funding for
economic development projects across the state of Maine. Maine projects are reviewed and
administered by EDA’s local representative, Alan Brigham at (215) 316-2965 or [email protected].
Programs and eligibility can be found at www.eda.gov
Various funding programs
Guidelines encourage regions to incorporate BB investments in their regional strategies
(CEDS)
Funding requires match
U.S. Department of Commerce- Broadband USA is helping communities nationwide ensure they
have the broadband infrastructure, digitally literate workforce and engaged citizens to thrive in
the Digital Economy. Details can be found here: https://www2.ntia.doc.gov/
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Provides direct (one-to-one) assistance to communities
Resource rich website- no direct grants
Building a self-assessment tool for communities
U.S Department of Agriculture- Rural Development has a number of grant programs worth
investigating. Local office in Bangor, contact Tommy Higgins, Acting State Director, (207) 990-
9160. More information on programs in Maine can be found here: www.rd.usda/me
Rural Broadband Access Loans and Loan Guarantees Program
Several other competitive grant programs to explore eligibility and criteria
U.S. Department of Treasury- New Markets Tax Credits (NMTC) has recently clarified the eligibility
of broadband infrastructure and related activities are eligible for NMTC provided they meet
certain criteria located here:
https://www.cdfifund.gov/Documents/2015%20NMTC%20Application%20QA%20FINAL.pdf
Axiom is exploring the potential of NMTC funding
Eligible census tracks are being reviewed
It’s unclear without investigation if the towns of Arrowsic, Georgetown and Southport may be
eligible
Broadband Opportunity Council Funding Report- U.S. Dept. of Commerce and USDA released a report
in January 2017 listing all federal broadband funding resources - See attached Addendums.