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Copyright Atlantic Engineering Group, All Rights Reserved © AEG Proposal Discussion May 21, 2020
Copyright Atlantic Engineering Group, All Rights Reserved©
AEG Proposal Discussion
May 21, 2020
Copyright Atlantic Engineering Group, All Rights Reserved©
Who is AEG?• Atlantic Engineering Group (AEG) was founded in 1996 from a Municipal
utility background. We are muni advocates.
• Over past 20 years, exclusively focused on designing and building Fiber-To-The-Home (FTTH) networks. All fiber, all the time.
• Provide full turn-key services - engineering/design, construction, project management, customer installations, and operations
• Completed more FTTH projects than all other contractors combined• 130 completed fiber projects • 60 of which were city-wide FTTH – 2.5M Homes passed, 50,000 miles of fiber.
• Fiber Advocate• Former Chairman of the Fiber Broadband Association• Broadband Properties, Top 100 FTTH Companies, Last 13 Years
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Who is AEG?
▪ Corporate Office – Atlanta, GA▪ Other Offices
• Permanent Engineering Offices in Kansas City, MO & Austin, TX
• Current Project Construction Offices in Colorado, Iowa, Tennessee, New York, and Maryland
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Select AEG FTTH Projects
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What do we want you to know about AEG?
▪ Family-owned, self-funded, nimble. Our clients have access to the highest levels of our leadership. We can make decisions quickly.
▪ Never been in a courtroom in 24 years of building fiber networks.
▪ We are fierce advocates for our municipal clients. We take sides. We don’t work for incumbents against muni’s. We have a history of telling it straight to our clients even when we believe it’s tough to hear.
▪ Vendor Agnostic Company – not on any materials vendors team. We believe the engineering decision points in a municipal FTTH build should be about the city’s network efficiency, not a vendors material list.
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What do we want you to know about the AEG Network Construction Proposal to Kaysville?
1. We are confident, when you compare apples to apples, that AEG will be the lowest cost, least headache, fastest rollout, partner for designing and building Kaysville’s fiber network.
• Base Price of Network = $16,716,554❑ 9,500 customers passed❑ 160 miles of fiber optic plant❑ 88% underground, 12% aerial, 10% rock, 25% missile bore, 75%
directional bore❑ Includes aerial make-ready construction cost of $15,000/mile❑ 20 Active Ethernet Hubs/Cabinets with ringed fiber routing and full
redundancy with 8 hour backup power• Incremental cost for new customers is $816.51/customer
❑ Blended cost for residential and commercial❑ Total price at 4,500 customers = $20,390,849 (Guaranteed Maximum
Price ”GMP” – no Change Orders)❑ While we would have a GMP, we also would pass along CAPEX savings
to Kaysville if final units are lower than our pre-design estimates.
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What do we want you to know about the AEG O&M Proposal to Kaysville?
2. A few comments on Operating the Kaysville network: AEG has operated networks for several of our municipal clients in the past –
typically in a retail service provider model. This isn’t new to us. The owners of AEG owned a sister company ISP called Atlantic Fiber Networks
(AFN) until it’s sell in 2018, so we are versed in what it takes to be an effective and efficient service provider ourselves.
AEG’s proposal assumed we started an O&M effort for Kaysville from scratch. We are open to partnering with a local option if it makes sense. The general pricing in our proposal was: $1,415,000/year at full customer maturity (6,000 active customers). This
breaks down incrementally as: $770,000 annually ($64,166/month or $16.04/customer/month @ 4,000
customers) for an office, marketing support, technical support, administrative support, 24/7 network monitoring, network security, and network performance guarantees for the first 4,000 customers.
An additional $645,000 annually for 4,001 to 6,000 customers. AEG is willing to discuss becoming a financial risk partner with Kaysville for
market share at mutually agreeable subscriber-based fees.
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QUESTIONS?
