Fibre Optic in HearstB Y J E S S Y R ICHA R D1 0 / 02/ 20 17

What is Fiber Optic

An optical fiber is a flexible, transparent fiber made by drawing glass (silica) and plastic. Optical fibers are used most often as light conductors and serve as a data transfer medium through the transmission of light. It offers a much higher data than coaxial cables and can be used to support a "broadband" of networks through which television, telephone, videoconferencing and computer data can be transmitted.

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Internet Mobile data

Internet speed?Since 2016, the Internet offers several possibilities but its usage is limited by its speed of information transfer. In recent years, several families have subscribed to Netflix, Roger GameCenter Live or other internet sites that broadcast Internet TV. In Hearst, most residences are limited to 3Mb / sec, which is the minimum speed required to watch movies on Netflix:

3.0 Megabits per second - Recommended for SD quality5.0 Megabits per second - Recommended for HD quality

25 Megabits per second - Recommended for Ultra HD quality

At a speed of 3 mb / sec, you can watch Netflix but it will be difficult for any other member in your home to use the internet.

Internet speed? (cont.)

Today, internet at super high speed:• storage of external data ("cloud storage")• Video conferencing• reducing wait time for businesses (especially businesses that have

more than one service point)

• playing online video games• teaching technology to Net Generation students

in institutions. • businesses (also in Hearst) that offer only online

shopping and services

Regional suppliers comparisonSpeed Suppliers Price

5 Mb/sec Northern Tel (Hearst) 56.95$ + 10.00$ (modem rental) per month

8 Mb/sec* Northern Tel (Hearst) 70.95$ + 10.00$ (modem rental) per month

12 Mb/sec* Northern Tel (Hearst) 78.95$ + 10.00$ (modem rental) per month

50 Mb/sec* Northern Tel (Hearst)+1,300$ par mois (the customer must pay for the

installation of the optical fiber to his company)

10 Mb/sec Cochrane Tel 35.95$ per month

25 Mb/sec Cochrane Tel 65.95$ per month

50 Mb/sec Eastlink (Kap) 82.90$ per month

400 Mb/sec Eastlink (Kap) 259.90$ per month

20 Mb/secNortherntel FiberOp(Timmins)

81.95$ per month

250 Mb/secNortherntel FiberOp(Timmins)

231.90$ per month

* Only available in selected areas

How to establish a telecommunications company in Hearst?

(major steps)

• Find an Internet supply source

• Conduct a feasibility study and a cost-benefit analysis

• Obtain stakeholder approval

Step 1

• Create a separate legal subsidary

• Obtain a sales licence with CRTC

• Apply for grants

• Project financing

• Create a separate Board of Directors

• Prepare a design concept as well as the engineering of the fiber optic system and solicit tenders for installation

• Develop marketing strategies

• Hire labor

• Prepare billing system

Step 2

• Install the infrastructure

• Offer customer service

• Manage the business

• Assess performance and opportunities for improvement

Step 3

Telecommunications station

The main station known as the “Point of presence" will be located on the Hearst Power Distribution premises located at 603 Kitchener Street.

Local Network and Fiber Optic

A Fibre optic network, installed on the Hearst Power Distribution electrical poles, will provide state-of-the-art networking.• Internet +1 GB/sec• Digital telephone• Digital televison

Local Network and Fiber Optic

Fiber Optic:• A fiber optic connection from the station to the premises.• Unlimited speed• Expensive router box at the customer’s premises

(+ $ 500 each)• Will be installed by the company technicians and possibly

local resources will be retained (ex: Hearst Power Distribution, and / or other interested company)

Wireless internet:• 10 mb to 100 mb per sec., up to 10 times higher than what is

currently available.• Small towers will be installed to amplify the signal and/or

reach other areas.

The telecommunications system

Hearst – all sectors:commercial and residential

Mattice

Hearst - fiber areas at the door:10 MB/sec to 1,000 MB/sec

10 MB/sec to 100 MB/sec

10 MB/sec to 100 MB/sec

Why is the Hearst Power Distribution proposing this project?

1. Existing infrastructure.

2.I am by nature a builder and I am ready to devote and commit myself to this project. I am aware of the required work.

3. Our good team: Experience, intelligence, organization, cohesion, communication, team spirit, willingness and motivation are just a few our team’s qualities that will make this project a success.

4.Our good relations: Northern Ontario Wires, Greater Sudbury Hydro, Hearst Economic Development Corporation, etc.

Like the Town of Cochrane with Northern Ontario Wires and Cochrane Telecom Services, both utilities work together as a team, exchange fees and employees - but are both independent. Each of these companies has its own Board of Directors and runs its own operations because they are the experts.

Affiliate Relationship Code + Ont. Reg.22-04: Provincial regulation that prevents all electricity distribution corporations in Ontario from offering "favors" or "passes" to its municipal shareholder.

Important notes

Costs

Based on initial estimates, the costs the for business and infrastructure establishment is estimated at 2.75 - 3.5 million.These costs include:• The subsidiary creation and registration• Engineering costs• Infrastructure• Billing system• Marketing

Funding sources

1. Provincial and Federal Funding: According to consulted individuals, government support could subsidize 50% -80% of the project costs

2. Long-term loan from the Corporation of the Town of Hearst3. Long-term loan from the Hearst Power Distribution Corporation4. Long-term loan from a financial institution

Human ressources

Administration: Initially, employees of Hearst Power Distribution Corporation will

be responsible for setting up the business. A manager and an administrative assistant will be hired.Operations: Two technicians including a team leader will be hired. Hearst Power Distribution Corporation employees will receive

training on infrastructure maintenance. Julien Plourde , professional engineer, will manage the concept

and design of the telecommunications system as well as employee training.

Possibility of hiring local companies for the installation of the telecommunications system, including the connection of the fiber to the premises as well as the installation of broadcasting towers.

Project benefitsBusinesses:• Permit unrestricted technological development and

encourage new online businesses.• Personalized service• Eliminate employee waiting time• Decrease subscription costs for telecommunications services

in the region

Residences:• Decrease subscription costs for telecommunications services in the

region• Will offer the possibility of high definition internet TV• Will open the door to the virtual world for online video game enthusiasts• Will allow teleconference communication• A much more reliable telecommunication service in the region

The benefits of the major players involved in this intercommunity project

Hearst Power Distribution Corporation:• Create lower spending • Allow exchange of services and human resources

Town of Hearst Corporation:• Additional income (rentals, human resources, etc.)• Add useful human resources within reach • Potential for a stable long-term dividend source

Another potential benefit for the Town?

Transform an expense................ into a source of income?

Example of succes– Cochrane Telecom

Several years ago, our south-eastern neighbors, Northern Ontario Wires, seized the opportunity to get into telecommunications by creating Cochrane Telecom Services.Today:• Their business includes 29 employees, 9 of whom are shared with their

electrical distribution company, Northern Ontario Wires.• They offer internet services at 10 mb / sec for 35.95 $ per month and

only 24 $ more for the telephone service. (NorthernTel offers 8 mb / sec for $ 70.95 a month in Hearst).

• They offer tailor-made services to their clients.• They offer ongoing dividends to the City of Cochrane (the shareholder).

Fiber Optic in Hearst… we wait? Or embark on a journey?