A MUNICIPAL TELECOMMUNICATIONS DEPLOYMENT

1. A MUNICIPAL TELECOMMUNICATIONS DEPLOYMENT APPA Community Broadband Conference San Francisco, CA October 2004

2. OptiNet Backbone Network • Voice/Data Backbone is built on multiple 2.5 Gbps self-healing resilient packet rings (RPR) • Rings are physically diverse between the six (6) primary PoPs in Bristol and Abingdon, Virginia • Rings boast a recovery time of 50 milliseconds for fiber breaks or other optical signal loss. • Necessary in the voice business

3. OptiNet Access Network • OptiNet access networks consist of two (2) architectures: • Passive Optical Network (PON) • Point-to-Point Ethernet • PON enables very efficient and relatively low cost deployment of Fiber-to-the-User (FTTU) • PON allows for a single fiber to be split passively up to 32 times and uses wave division multiplexing (WDM) to carry three wavelengths for data transmit/receive and video broadcast. • PONs are ideal for serving general voice, data, and CATV access requirements to business and residential customers.

4. Operational Considerations! • OSP • Customer Service Representatives • Orders are taken into the billing system • Activation scheduling • Moves/Adds/Changes • Engineering • Residential • Commercial • Pre-engineering information sheets • Fiber Install & Splicing • In-house or contract • Equipment purchases or leases • Crew size

5. Operational Considerations! • OSP • ONT Installation • Overhead/UG • Splicing • 3 Installs/day/man • Provisioning • ONT • Number porting issues • New number • Data services • Service Activations • Inside wiring issues • Battery installations • Settop box installs • 3 Activations/day/man

6. How To Make It Work and Pay? • Let’s Follow the Flow • Customer Contacts a CSR • Credit check is processed immediately • Service order is created in the billing system • Service order is sent to Engineering for assignment • Network Technician identifies physical plant facilities • Aerial/UG • NAP Information

7. How To Make It Work and Pay? • Operations Manager schedules ONT installation • Fiber management is documented • OSP crew installs ONT and splicer completes work assignment at the NAP and at the ONT • Drop is patched at the Convergence Cabinet (LCC) • Power output is recorded • All documentation returns to NOC for provisioning • After provisioning, service order is returned to CSR for activation scheduling. • Activation is scheduled through a work force management system

8. How To Make It Work and Pay? • Voice provisioning has been initiated, if necessary, and ports are in the system for scheduling by the incumbent • Activation crew arrives at customer site on scheduled date and installs battery, any necessary inside wiring, and turns up all ordered services • Activation crew verifies all services on and leaves another happy customer • Service order returns to Order Manager for review and service order goes to billing • Customer is billed and OptiNet is very happy!

9. Maintenance Considerations • OSP • Unscheduled • Fiber breaks • ONT damage • Tree trimming • Scheduled • Software upgrades • Maintenance window • 2 A.M. to 6 A.M.

10. Maintenance Considerations • Customer Premise Trouble • NOC generates/clears all trouble tickets • No dial tone • Feature problems • CATV problems • Data problems • Install issues • 65-70% problem resolution

11. Marketing • Marketing Manager • Responsible for all marketing and advertising • Brochures • Price Lists • Advertising • Print, radio and televison • Ad insertions • Cross channel advertising • 4 channels • Focus groups

12. Marketing • Billing system gathers marketing statistics • Weekly updates of customer activity • Reports are crucial

13. Product Enhancements • LD Packages • Telephone features • Internet download/upload speeds • HDTV • DVRs for Analog/Digital customers • Home networking • HPNA • Wireless

14. New Products • Premise Security • Commercial/Residential • Content Applications • Games • Music • VOD • FVOD • SVOD • Disaster Recovery • Hot and cold sites

15. Success Indicators • Market Penetration • Revenues • Product take-rates • Churn • Customer Response • Requests for service extensions

16. FCC Requirements • Voice • Federal Registration Number • CORES Registration Form • Designation of Agent for Service Process • 214 Application for International Authority • Interstate switched access tariff • USF Forms 498 and 499Q • Telecommunications Slamming Complaint Report

17. FCC Requirements • CATV • Registration to operate CATV system • Incorporated towns • Signal leakage reporting

18. Would We Do It Again? • YES • A positive for the community • Customers have been the winners • Keeps competitors on their toes • A strong economic development tool • Opened doors for other communities

19. How Is OptiNet Doing? • OptiNet passes approximately 10,000 commercial and residential customers • We have over 5,000 FTTH & FTTB customers and over 5,900 total customers including dial-up • OptiNet met and surpassed year-end revenue and customer goals

20. How Is OptiNet Doing? • 4543 Telephone customers • 6557 access lines • 175 pending • 4264 CATV customers • 29% digital penetration • 150 pending • 2699 Data customers • Better than 50% of customers take Internet • 81 pending

21. How Is OptiNet Doing? • 854 Dial-up customers • 73% Feature package penetration • 71% Penetration on long distance • $565,000 Annual Revenue