Broadband Best Practices SummitTechnet: San Jose, California

June 29, 2007

Tad Deriso, General Managertad@mbc-va.com (804) 855-4057

Virginia’s Broadband Future

Virginia’s Broadband Future

MBC Overview

Idea formed in 2000 by local business leaders, Old Dominion Electric Cooperative and Virginia Tech Lack of advanced/affordable telecom

infrastructure Desire for Private Sector to be key players in the

project Transform the regional economy by creating a

unique technology advantage

Problem to Solve?

T-1T-1

Dial-up ISDN DSL Cable Wireless 54k 128k 768k 1.5MB 2.0MB

T-1 T-3 OC-3 OC-12 OC-48 OC-1921.5mb 45mb 155mb 622mb 2.5gb 10gb

Ethernet Services: 10MB…..10GB

Residential/Small Business Carriers / Enterprise / Large Users

MBC Business Model

Focus on the “Dumb” Pipe Don’t select last-mile winner/losers Private Sector participation Flat-Rate Wholesale Pricing Model Level the playing field for broadband services Metro Ethernet, TDM, Wavelength Services Willing to provide Dark Fiber

MBC Industrial Park AccessAirpark 460Airpark 460

MBC Today

Over $40 million in grant funding Regional network operational 4th Qtr-’06 MBC offers wholesale services to

Members (Telecom Service Providers) Efficient staffing & resources to operate

carrier-class network FY07 revenues: $1M, FY08 proj: $1.4M

MBC Competitive Advantage

Only rural region in the US with owned fiber and transport to Tier1 Data Locations

200Gbps System - Infinera Currently 36 Gigabits

provisioned on MBC long-haul network

Price Point Comparisons…

Solving the Backhaul Challenge

Improving Contention Ratios for ISP’s

Cost effective access for larger telecom service providers

Transport & Internet Pricing Level Set

TRANSPORT COST INTERNET PORT COST

Circuit Type Before MBC

After MBC

Before MBC

After MBC

DS1 $500 $250 $800 $300

DS3 $5,000 $1,500 $6,000 $3,000

10Mbps Ethernet

N/A $400 N/A $1,000

50Mbps Ethernet

N/A $1,000 N/A $1,500

100Mbps Ethernet and Above

N/A $1,500 N/A $2,000

Equinix to SAIC Building

Equinix to Northrup Grumman

50Mbps $2,420100Mbps $3,380200Mbps $5,8201GigE $8,280

50Mbps $2,564100Mbps $3,264200Mbps $5,5601GigE $7,650

Richmond POP to Data Center

50Mbps n/a100Mbps $3,477200Mbps $5,9051GigE $15,169

Equinix to Danville - IALR

50Mbps $2,025100Mbps $2,700200Mbps $4,1001GigE $6,300

Monthly Metro Pricing

Northern Virginia 50Mbps 100Mbps 200Mbps 1GigE

Equinix – SAIC (Herndon) $2,420 $3,380 $5,820 $8,280

Equinix – NGC (Reston) $2,564 $3,264 $5,560 $7,650

Richmond, Virginia 50Mbps 100Mbps 200Mbps 1GigE

Level(3) POP to Innsbrook n/a $3,477 $5,905 $15,169

Southside Virginia 50Mbps 100Mbps 200Mbps 1GigE

Equinix – IALR Danville $2,025 $2,700 $4,100 $6,300

(average price variance) (19%) (18%) (29%) (39%)

The Balanced Scorecard

FinancialFinancial

CustomerCustomer Internal ProcessesInternal Processes

Jobs in CommunitiesJobs in Communities

Vision and

Strategy

OBJ MEASURE TARGETS INIT.

OBJ MEASURE TARGETS INIT. OBJ MEASURE TARGETS INIT.

OBJ MEASURE TARGETS INIT.

The Most Important Sign that The Most Important Sign that Rural Virginia is Open for Rural Virginia is Open for

Business and has Embraced the Business and has Embraced the Technology Age…Technology Age…