St. Joe Valley Metronet, Inc.

Executive Briefing2004

Our Telecommunications Study Revealed

Current Market:

The local broadband environment was restricted with respect to access and services, and was often non-competitive with respect to pricing.

Competition:

St. Joseph County was not a competitive location option to any existing or new business expansion, when the new or expanded activities of that business rely significantly upon the effective movement of large quantities of information via electronic means.

Typical Businesses for which we could not compete:

Engineering & Design Centers National/Regional Data CentersDisaster Recovery Operations Medical Records CentersBanking & Insurance Processing Telcom Support CentersLife Science Research & Design Centers

Issues Investigated

Availability of national and regional carriers

Local communication infrastructure

Local communication service providers

Various community models

Potential benefits

Broadband Primer - Transportation Media

Digital Signals

Copper Wire - Glass Fiber - WirelessDark vs. Lit

Size and speed of signal is important

Bandwidth Comparisons

56KDialup

256K/1.5M DSL

T11.5Mbps

DS-3 45Mbps

10Mbps LAN

100 Mbps

1Gbps (Gig-E)

OC-48 (2.45Gbps)

OC-19210Gig-E

.

Broadband Primer - Transportation Systems

Local Exchange Carriers

Last Mile Connection

Central Office #1

Central Office #4

Central Office #3

Central Office #2

Central Office #5

Local Exchange Carrier Structures

Broadband Primer - Transportation Systems

Local Exchange Carriers

Last Mile Connection

Long Haul Carriers

Direct ConnectionVs

Connection through Local Exchange Carrier

Broadband Primer - Typical StatusNearly all US communities will fit into one of these categories

Large Communities• Have many major broadband users• Have many Long Haul Carriers, and many have carrier-

grade (conduit & fiber) facilities in place• Have multiple direct connection options to Long Haul

Carriers

Midsized Communities• Have only a few major broadband users• Have few or no Long Haul Carriers w/ carrier-grade

(conduit & fiber) facilities in place • The only connection opportunity to other carriers is

through the Local Exchange Carrier

Small Communities• No existing major users exist• No Long Haul Carriers present• Local Exchange Carrier may have no broadband

facilities, either.

North American Fiberoptic Long-Haul RoutesNorth American Fiberoptic Long-Haul Routes

Midwest Fiberoptic Long-Haul RoutesMidwest Fiberoptic Long-Haul Routes

KMI CorporationOctober 2000

MCI WorldwideMcLeodUSA360Networks

SprintFrontier

TouchAmericaElectronicLightwave

AEPWilliamsQwestAllTel

Pathnet

Broadband Users

Local Access Loop

Access Points

Network ServiceProviders

If left to develop under current market conditions, the local broadband access market will most likely continue to be primarily under a single

source provider’s service, cost and regulatory environment.

Current Market Conditions

Our Objectives

• Expand broadband telecommunication systems and infrastructure so as to:• Increase the number of connection alternatives available to major

users.• Create a cost/pricing environment that is the most affordable

environment in the United States.

• Establish a carrier-neutral broadband infrastructure that might:• Be accessed by all major users. • Be extended into all development areas which anticipate investment

by major users.

• Tactics:• Establish a community-wide plans and systems.• Utilize our existing municipal and private sector infrastructure where

ever possible.

Pertinent PhysicalTelecommunication Structures

Carrier Hotel

Central Office #1

Carrier Hotel

Central Office #4

Central Office #3

Central Office #2

Data Center

Competitive Central OfficeCable Company NOC

Multiple Network ServiceProvider POPs

Central Office #5

Major Local Communication Structures

CARRIERS AVAILABLE via GLOBAL ACCESS POINT

Integrated Technology Solutions

• SBC• MCI/WorldComm• US Signal• Wiltel• Broadwing• Indiana Fiber Networks• Indiana Fiber Works• Cavalier Telephone• Kentucky Data Link• LightCore• Qwest• Yipes• SJV MetroNet

• VIA GAP Network• AT&T• Cable & Wireless• Cogent• Level 3• Looking Glass• Time Warner• ChoiceOne• NorLight• McLeod• 360 Networks• Others

GAP Midwest Network Map

Integrated Technology Solutions

Features of Union Station

• 94,000 sq ft. Carrier Grade Space

• 15,000 sq. ft. Data Center Space (GAP Building)

• Dual Commercial Power Feeds

• Multiple Redundant Air Conditioners

• Smoke/Heat/Water Detection• Located on Primary Fiber Path

w/multiple Carriers present

• Heavy Floor Load Capacity• Roof/Tower Space for Antennas• Machine & Office/Tech Support

Space• DEC Services

GramTel Data Center – South Bend

[ GramTel Corporate Overview ]

• Company of Jordan Industries Inc. (JII)• Diversified Private Holding Company in Chicago

• JII has ~ 40 companies in portfolio• Mission: To partner with entrepreneurs to develop

and grow businesses

• GramTel founded in 2000, opened in 2001

• Over 300 business customers• Mission: To prevent and respond to disasters or

emergency events that cause your critical computer systems and information to become unavailable

• www.gramtel.net

[ GramTel Corporate Philosophy]

GramTel was founded on a unique philosophy:

Develop world-class data centers and technical staff in secondary low-risk markets, located within a reasonable driving distance from large metropolitan cities and more importantly, your primary systems.

Businesses in major cities use our data centers as a back-up to their primary data center, while businesses within 50 miles of the data center use them as a primary co-location site.

[ GramTel Consulting Services ]

Business Continuity Planning-Recovery Strategy

-Business Impact Analysis (BIA)-Risk Assessment (RA)

-IT Business Continuity Plan Development (IT-BCP)-Risk Management and Monitoring-Disaster Recovery Plan Development and Documentation-Disaster Recovery Plan Maintenance and Testing-Disaster Recovery Plan Training

-BCP/DRP Review and Assessment

Security -Security Policy Development-Security Standards and Procedures

Network Consulting-Network Design-Network Configuration-Network Vulnerability Studies

[1.][ GramTel Data Center Features ]

• Emergency Generator (750 KW)• A+B UPS systems (85 KVA)• Redundant HVACs (30 ton)• Air Sampling – Fenwal Analaser• Gas Fire Suppression (FM-200)• Redundant Internet Connections • SONET with diverse route to local CO• Metronet Fiber with diverse path• Raised floor• CCTV cameras• Biometrics• Fenced area• Roof Top Access

[ Typical Clients ]

                  

Pertinent PhysicalTelecommunication Structures

Carrier Hotel

Central Office #1

Carrier Hotel

Central Office #4

Central Office #3

Central Office #2

Data Center

Competitive Central OfficeCable Company NOC

Multiple Network ServiceProvider POPs

Central Office #5

Major Local Communication Structures

Broadband Users

Local Access Loop

Access Points

Network ServiceProviders

P.O.P - Carrier Hotel

Steps TakenPlanning

• Identified framework for private/public partnership

• Identified area’s current major users

• Compiled cost estimates for the system

Validation (via InfoComm Systems, Inc.)

• Principal: Jim Goldman - Purdue Technology Center

• Primary Tasks

• Review all previous work by local committee

• Created a comprehensive strategy

• Identified appropriate governance structures

Creating a Local Metronet

Incorporated

• St. Joe Valley Metronet, Inc.• March 10, 2004• An Indiana Non-Profit Domestic Corporation• Bylaws Filed

Corporate Activity

• Provide physical infrastructure enabling cost effective high-speed data communications, serving:• Government• Education• Healthcare• Cultural Institutions• Economic & Workforce Entities

• Dark Fiber only• Service Provider Neutral

Creating a Local Metronet continued

Physical Network

• Reciprocal License of Municipal Facilities • Contributed Capital (Primarily for fiber optic cable)• Contributed private infrastructure (Conduit, fiber

exchanges…)

Operations

• Network Installation will be phased• Initial Loops – South Bend

Arch Wireless (1)AT&T (1)Broadwing (1)Cellco (Verizion) (2)

MCI (1)Nextel Com. (1)Omnipoint Com. (2)Qwest (2) SBC (5)SPRINT (1) US Signal (1)Union Station (1)US Cellular (1)United Tel (3)USX (Choice One)(1)Weblink Wireless (1)Williams (1)

Centennial Mich. (1)Century Tel (1) Dominion (1)EGIX Network (1)GramTel (1)KMC Telcom111 (2)Level 3 (1)

Outer Loop A: 144ct

CBD Loop A: 288ct

Creating a Local Metronet continued

Physical Network

• Reciprocal License of Municipal Facilities • Contributed Capital (Primarily for fiber optic cable)• Contributed private infrastructure (Conduit, fiber

exchanges…)

Operations

• Network Installation will be phased• Initial Loops – South Bend• Secondary Loops – Linking to Mishawaka

Creating a Local Metronet continued

Physical Network

• Reciprocal License of Municipal Facilities • Contributed Capital (Primarily for fiber optic cable)• Contributed private infrastructure (Conduit, fiber

exchanges…)

Operations

• Network Installation will be phased• Initial Loops – South Bend• Secondary Loops – Linking to Mishawaka• Additional Loops – Expanding to Adjacent Counties

In Summary:

What motivates us?• Jobs - Investment - Seamless Delivery of Government Services

What motivates those whose investments we seek?• Multiple Vendors• Competitive Prices• Redundant Connections

What types of investments are we pursuing?• Collaborative R&D - Tech Transfer - Advanced Manufacturing

Demands - Life Sciences Growth - Information Technology Programs & Businesses

• educational, • cultural,• research• healthcare institutions• government related

agencies and• other organizations

Mission StatementMission Statement

The objective of St. Joe Valley Metronet, Inc. is to encourage

• community development

• economic development

• public health and safety

In order to enhance

By providing

• high-speed data communication capabilities

• at the most cost-effective prices available.

The ongoing development of

Project Overview

• The Metronet is a Dark Fiber Network – SJVM pushes no signal

• South Bend network construction cost ~$1.6M

• Initial Plan Covers 5 Initial Loops, ~39 miles (see schematic)

• Initial construction was funded through private donor underwriting

• Construction began Spring 2005

• Construction to be complete of South Bend loops 10/30/06

Target Service ProvidersTarget Service Providers

Tier 1 Tier 2 Tier 3

• Comcast

•SBC/AT&T

• MCI/Verizon

• Sprint

• Qwest #1 & #2

• Norlight

• IN Fiber Works

• US Signal

• Level 3

• Hayes

• Wilte/Williams

•Dominion

• Shearer

•Global Access Point

•Gramtel

• Cyberlink

• MapleNet

• Data Cruz

• KC Online

• Quantum

• IN Fiber Network

Tier 1 – Those who “make” service

Tier 2 – Those who connect to those who “make” service

Tier 3 – Those who connect, bundle and resell services of others under a private label

7 Qualifying Capital Donors

Robert Bosch Corporation

Madison Center

Memorial Hospital

Saint Joseph Regional Medical Center

South Bend Medical Foundation

Teacher’s Credit Union

University of Notre Dame

Project Time LineProject Time Line

Aug 2004

Mar 2004

Mar 7, 2005

2001 • Task Force Deployed to Assess Economic Opportunity of Metronet

• Articles of Incorporation Filed

• Application Filed for Section (c)(3) Status (Pending)

• MOU’s signed by Seven (7) Qualifying Capital Donors

• Business Plan Complete

• 1st Board Meeting – Organization of Metronet

• Approval of Business Plan

• Reciprocal Agreement Ratified

• Construction Bids Received

• Approval of Financial Plan/Pricing Strategies

• Initiate Construction

• Execution of Maintenance, Engineering & Operations Contracts

• CBD and Outer Loop Complete

• Initiated Operations for Founding Partners

Dec 2004

Oct 1, 2005

Mar 7, 2005

Mar 14, 2005

Mar 28, 2005

Apr 4, 2005

Apr 14, 2005

Mar 7, 2005

Nov 1, 2005

Apr 30, 2005