OF USE IRU EXCHANGE AGREEMENT WITH CONTACT NETWORK LLC dba INLINE Information Technology Department Guest Introduction Martin Costa President CPA AGENDA Project Opportunity Fiber Optics 101 ID: 595784
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DARK FIBER INDEFEASIBLE RIGHT
OF USE (IRU) EXCHANGE AGREEMENT WITH CONTACT NETWORK, LLC,d/b/a INLINE
Information Technology DepartmentSlide2
Guest Introduction
Martin Costa, President, CPASlide3
AGENDA
Project Opportunity
Fiber Optics 101
Proposed IRU Agreement
Options
QuestionsSlide4
PROJECT OPPORTUNITY
InLine
constructing 1300+ mile regional fiber project for national carrier
InLine
approached the City and proposed a public/private partnership for fiber expansion
50+ miles of a larger project
Negotiations ongoing, but short timeframe
(60-90 days from construction)Slide5
FIBER OPTICS 101
Types of Fiber Optic Cable
Multi Mode
Typically used for shorter internal connections
Powered by LEDs
Single Mode
Typically used for longer connections (1 km+)
Powered by Lasers
Dark Fiber
– refers to unused or ‘dark’ fiber optic cable. No electronics or light sources are attached to either end of the cable.Slide6
FIBER OPTICS 101 cont.
Anatomy of a Fiber Optic Cable
Each Buffer Tube Contains 12 Individual Fibers
A 288 Fiber Cable Contains 24 Buffer Tubes
36 Fibers = 3 Buffer TubesSlide7
FIBER OPTICS 101 cont.
Installation
Typically installed underground in conduit but can be direct buried.
Can also be installed above ground attached to utility poles.
Buried fiber is installed with copper wire for locating purposes.
Marker poles installed along fiber route indicate buried cable. Slide8
FIBER OPTICS 101 cont.
Connectivity (as it relates to capacity)
Typical connection uses 2 fibers (1 transmit, 1 receive).
Multi-Tenant buildings may use one fiber connection to a multi-port switch.
Electronics allow for Wavelength Division Multiplexing (WDM)
Light is split into individual wavelengths
Each wavelength = separate connectionSlide9
PROPOSED IRU AGREEMENTSlide10
InLine Lease of City Fiber
Inline to ‘lease’ approximately 34 miles of existing City owned fiberInline leasing 36 fibers of City owned 144/288 fibers (depending on segment)Slide11
City Lease of InLine Fiber
City to ‘lease’ approximately 15 miles of proposed InLine fiber to be constructedCity leasing 36 fibers from InLineSlide12
InLine Construction and Transfer of Fiber
InLine to install an additional 1.3 miles of fiber to Water Treatment Plant #2 and turnover to CitySlide13
Proposed Key Agreement Terms
Agreement will effectively ‘swap’ 15 miles of fiberInLine will pay the City to ‘lease’ the remaining 19 miles of fiber34 miles total – 15 miles leased by CityLease amount is currently being negotiatedCity will pay the cost of fiber install to Water Treatment Plant #2
Proposed installation cost of $40,000Previous City installation cost estimate of $107,000 City will save $12,600 per year for connection costs
Term of 20 years, with the option for 2, 10 year renewals
InLine
to sign non-compete for existing direct customersSlide14
Options
City does not swap fiber and leases entire 34 miles to InLineNo expansion benefits (connectivity)Additional revenue from leased miles InLine does not build and transfer WWTP#2 fiber to the City City does not realize cost savings for construction and ongoing connection costs Slide15
Benefits
Expand FiberNet15 Mile ExpansionHigh Speed Connection to City Facilities at Minimal CostMore Revenue and Lower Expenses to CityAdditional Revenues from Long-term LeaseLower Expenses for High Speed Connection to City FacilitiesAdditional High-Speed Connections to Community and BeyondPaving the Way for 5GSlide16
Questions?