Centerville’s Goals for UTOPIA

• High Quality Infrastructure

• Competitive Marketplace / Consumer Choice

• Financially Self Sustaining

Macquarie’s Cost Comparison

What’s available on UTOPIA today? Competition.

Residential Pricing in Centerville (Data)

Monthly Service (Internet Only)

UTOPIA(assumes $25 lease or

CUE) No Data Caps

PPP Model(assumes utility fee of

$19)

Cable (introductory –

regular rate) 300GB Data Cap

DSL (introductory –

regular rate) 150GB Data Cap

Wireless(requires line-of-sight to a tower) 150GB Data Cap

1.5 Mbps $20 - $40

3.0 Mbps $19 (20GB cap)5.0 Mbps $406.0 Mbps $507.0 Mbps $20 - $4510 Mbps $4515 Mbps $5025 Mbps $55 $49 $30 - $6750 Mbps $60-$65 $54-$59 $35 - $77

100 Mbps $60-$80 $54-$74 $115

1.0 Gbps $90-$100 $84-$94

Current UTOPIA Model Macquarie Incumbents

For the true cost of providing internet service in Centerville, add an additional $8/month. This is the average amount each household pays into the General Fund for current UTOPIA obligations. With Macquarie, the $8/month most likely goes away due to revenue sharing after 3-5 years.

Residential Pricing in Centerville (D+V)

Monthly Service (Internet + Voice)

UTOPIA(assumes $25 lease or

CUE) No Data Caps

PPP Model(assumes utility fee of

$19)

Cable (introductory –

regular rate) 300GB Data Cap

DSL (introductory –

regular rate) 150GB Data Cap

Wireless(requires line-of-sight to a tower) 150GB Data Cap

1.5 Mbps $75 - $87

3.0 Mbps $29-$39 20GB Cap5.0 Mbps $606.0 Mbps $707.0 Mbps $75 - $9210 Mbps $6515 Mbps $7025 Mbps $75 $69 $50 - $8750 Mbps $82 -$90 $76-$84 $55 - $97

100 Mbps $75-$105 $69-$97 $135

1.0 Gbps $105-$120 $99-$114

Current UTOPIA Model Macquarie Incumbents

For the true cost of providing internet service in Centerville, add an additional $8/month. This is the average amount each household pays into the General Fund for current UTOPIA obligations. With Macquarie, the $8/month most likely goes away due to revenue sharing after 3-5 years.

Residential Pricing in Centerville -- TV

Monthly Service (Internet + TV – basic package)

UTOPIA(assumes $25 lease or CUE) No Data

Caps

PPP Model(assumes utility fee of $19) No

Data Caps

Cable (after introductory period)

300GB Data Cap

3.0 Mbps $656.0 Mbps $8525 Mbps $10050 Mbps $80 $74 $82

100 Mbps $100 $94

1.0 Gbps $110 $104

Monthly Service (Internet + Voice + TV – basic package)

25 Mbps $120

50 Mbps $105 $99 $190

100 Mbps $125 $119

1.0 Gbps $135 $129

Current UTOPIA Model Macquarie Incumbent

Google Fiber vs. Macquarie PPP

Monthly ServiceUTOPIACenterville

PPP ModelAll Areas

Google Fiber Provo

Free Internet n/a 3/3 Mbps (20GB cap) 5/1 Mbps Data

100 Mbps Data $35-$55 $35 or less n/a

1 Gbps Data $64.95-$84.95 $65 or less $70

+ Video $49.95 (~150 ch) TBD $50 (~200 ch)

Monthly UTILITY Fee None $9-10 Apt$18-20 SF

$36-40 Commercial

$5.35 SF$10 Commercial$2,000 Industrial

InstallationMonthly Lease Fee

$2,750 one timeor $20 for 20 years

or $30 lease

None $30

Competition (Residential & Business Service Providers)

9 Residential 10+ Business

9 Residential10+ Business

1 Residential0 Business

City General Fund: original UTOPIA Debt

$8 $8 today dropping to $0 over time

unknown

Current UTOPIA Model Macquarie Google Fiber

Incumbent's Reactions to Competition (taken from PPP Report)

Citizen Joan – Landline only, no internet

Current Situation:

Uses a landline phone at a cost of $35

month.

Savings:

Citizen Joan will save $10/month and will now have basic internet access.

Future Situation:

Adds a phone line to the basic “free” option offered through Macquarie and now pays the utility fee of $19/month for 3/3Mbps Internet + $6 for a phone line for a total of $25.

Citizen John - No landline, cell phone only, only needs the internet – light user

Current Situation:

Uses DSL and pays the introductory price of $20/month for a year and then will pay $40/month thereafter for 1.5Mbps/896K

service.

Savings:

Citizen John will pay about the same during the introductory period for better service. After one year, he’ll save $21/month.

Future Situation:

Decides to upgrade his speed to the basic “free” option offered through Macquarie and now pays the utility fee of $19/month for 3/3Mbps.

Citizen Joe - No landline, cell phone only, only needs the internet – medium user

Current Situation:

Uses cable for his internet and pays the introductory price of $30/month for a year and then will pay $67/month thereafter for

25/5Mbps service.

Savings:

Citizen Joe will pay $19/month more the first year for his internet service if he switches because of the promotional rate he is receiving from the cable provider. After one year, he’ll save $18/month.

Future Situation:

Decides to switch to an ISP on the fiber network. He pays the utility fee of $19/month and an additional $30/month for the 25/25Mbps service. He pays a total of $49/month.

Citizen Jack – Needs the internet and reliable phone service with unlimited calling

Current Situation:

Uses the local phone company for his DSL and phone. His plan that includes unlimited long distance has an introductory price of $75/month for a year and then goes up to

$92/month thereafter for 7/1Mbps service.

Savings:

Citizen Jack will save $6/month the first year if he switches and $23/month thereafter for much faster speeds.

Future Situation:

Decides to switch to an ISP on the fiber network. He pays the utility fee of $19/month and an additional $50/month for the 100/100Mbps service and unlimited long distance. He pays a total of $69/month.

Citizen Jane – Needs the internet for gaming sons, phone service and video

Current Situation:

Only service fast enough is the cable company. She gets the “triple play” which comes with unlimited phone, basic cable and 50/10Mbps service for an introductory price of $90/month. After the first year, the price will

go up to $147/month.

Savings:

Citizen Jane will pay $9/month more the first year if she switches and then save $48/month thereafter.

Future Situation:

Decides to switch to an ISP on the fiber network. She pays the utility fee of $19/month and an additional $80/month for the 50/50Mbps service, unlimited long distance and TV. She pays a total of $99/month.

Citizen Jamal – Serious gamer that needs unlimited phone service and a premium video package

Current Situation:

Only service fast enough is the cable company. He gets the “triple play” which comes with unlimited phone, basic cable and 105/20Mbps service for an introductory price of $200/month. After the first year, the price will go up to

$250/month.

Savings:

Citizen Jamal will pay $9/month more for the first year if he switches and gets the faster speed and then save $41/month thereafter.

Future Situation:

Decides to switch to an ISP on the fiber network. He pays the utility fee of $19/month and an additional $180/month for the 100/100Mbps service, unlimited long distance and premium channels. He pays a total of $199/month. He decides to upgrade to the 1/1Gbps service for $10/month more.