HomeMy WebLinkAbout _ 9.1(b)--Accept Report regarding a City of Redding fiber optic broadband network � � �' � � �
� � � ' � �' � � ' � ` CITY OF REDDING
REPORT TO THE CITY COUNCIL
MEETING DATE: August 20, 2024 FROM: Jason Gibilisco, Management
ITEIVI NO. 9.1(b) Assistant to the City M�anager
***APPROVED BY***
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jgibilisco@cityofredding.org btippin@cityofredding.org
SUBJECT: 9.1(b)--Consider report regarding a City of Redding fiber optic broadband
network.
Recommendation
Accept the report regarding a City of Redding fiber optic broadband network and provide
direction on next steps.
Fiscal Impact
There could be no fiscal impact if the City Council (Council) accepts the report and provides no
further direction to staf£ If the Council directs staff to issue a request for proposals or request for
qualifications for a City of Redding (City) fiber optic network, the cost could greatly vary
depending on how the City wants to pursue it. A full build out of a City fiber optic network to all
buildings and City customers could exceed $180 million which could be financed by the City,
private developers, or a combination of both.
The City currently pays recurring payments to AT&T and Spectrum for all internal connectivity.
These costs increase over time and the City currently has no way to manage or administer
throughput without continual cost increases.
Alternative Action
The City Council could choose to not accept the report.
Background/Analysis
Internet has become an essential part of everyday life for people, businesses, and governments.
The need for fast and reliable internet allows for a broader range of internet use and are major
factors when selecting an internet service provider(ISP)by a customer.
Report to Redding City Council August 15,2024
Re: 9.1(b)--Accept Report regarding a City of Redding fiber optic broadband network Page 2
Broadband, which is the term used for high speed internet, can be utilized over Digital
Subscriber Line (DSL), Cab1e, Wireless, and Fiber Optic Cab1e. Speeds and reliability can
drastically vary across the various forms of broadband. The Federal Communications
Commission defines broadband as 100 Megabits per second (Mbps) downstream speed (amount
of data a person can receive) and 20 Mbps upstream speed (amount of data a person can send).
Fiber optic cable is capable of up to symmetrical speeds of up to 25 million Mbps. This is
exceptionally faster than all other broadband options and is the superior broadband option.
Fiber optic cable is considered a 100-year technology due to reliability and speeds, regardless of
weather, user traffic and distance, with no throughput. As a result of better speeds and reliability,
users have clearer streaming of high-resolution videos, smooth online meetings and
appointments, fast downloading and uploading, and better online security.
In 2017, Council Member McElvain presented two separate reports to the Council that outlined
options to pursue fiber broadband in the downtown core. The Council Members at the time were
concerned regarding the burden on the City's general fund. Council agreed for staff to proceed in
gathering more information about pursuing an internet utility for the City. A Master Broadband
Plan was submitted in April 2019 by Geographical Information Center at California State
University — Chico (GIC). The plan completed by GIC recommended potential upgrades and
expansion to existing infrastructure and assessment of services offered by TSPs.
On September 3, 2019, Council approved an agreement with EntryPoint Networks to develop a
City-wide Internet Utility Master Plan including a risk and cost analysis. EntryPoint's Broadband
Masterplan, took in all regions of the City which included the City's demographics and business
uses. EntryPoint's Broadband Master Plan takes Redding Electric Utility's (REU) efforts into
consideration and provides information that can be used in a strategy that would allow broadband
service to the entire community including cost structure, risk analysis, and potential phases of
construction.
At that time, REU had intentions to connect the City's Power Plant to fast trip relays at the
Oregon Street substation via fiber optic cable, REU's intent was to provide a �ber optic ring
around the City, utilizing existing right-of-way and pole connections via REI7's 115kV
transmission system. This would have connected critical electric infrastructure and City
buildings. Due to changes in technology and business processes, ultimately REU did not require
the fiber optic ring around the City and ceased the project.
On May 4, 2021, the Council accepted the City broadband project update and postponed further
development of fiber-to-the-home internet utility until the fiber ring is constructed or until
legislation directs otherwise. The key to implementing fiber-to-the-home during this time was
REU's buildout of the fiber optic ring. This would have been the backbone to build out the fiber
optic cable infrastructure to residents and businesses. As the REU project was discontinued, so to
was the City's pursuit of a city-wide fiber system.
In the past year, the City has been contacted by multiple fiber optic development companies on
what the City would require in deploying a �ber optic network in the City. Many cities
throughout California have implemented various options of their own fiber optic networks in
their respective cities. This includes city-owned and operated broadband service, and public
private partnerships in broadband service. Many cities cite economic benefits for implementing
fiber optic networks in their communities as a way to anchor and attract businesses.
Report to Redding City Council August 15,2024
Re: 9.1(b)--Accept Report regarding a City of Redding fiber optic broadband network Page 3
The recently approved 2045 General Plan includes supporting infrastructure to promote
economic activity. This includes implementing fiber optic technology, public WiFi in downtown,
parks and other key areas around the City. The 2045 General Plan also includes reducing barriers
to equitable technologies, and encourage economic drivers to anchor institutions for broadband
rollout.
There are various options the City can pursue if the Council chooses to pursue a City fiber optic
network:
Option 1.
The City could own and build a fiber optic network. This option was previously discussed in
2017 and the years following, and the Council was concerned with the additional burden to the
general fund. This would not be a viable option as the costs are likely to exceed $180 million.
Option 2
Fiber optic cable has slowly been rolled out in various parts of the City from incumbent ISPs.
The City is not aware of the extent of incumbent fiber optic installation that has occurred in the
City. The City has the option to allow fiber developers to pursue normal development and use of
the public right-of-way.
Option 3
If the City were to take an action with pursuing a City fiber optic network, City staff would
recoinmend forming a public private partnership or hybrid model with a fiber optic developer.
This can be done by either issuing a request for proposals or a request for qualifications. This
would allow the City to have an influence in how a fiber optic network is developed in the City.
The City can also seek other possible partners with other local agencies such as school districts,
colleges, Shasta County, and federal or state agencies.
The City has the option to exchange certain services that could assist in offsetting costs for the
City and its users. With rising broadband costs for the City, the City has the option to leverage
the use of City-owned power poles and can streamline the permitting process for a fiber optic
developer. The City could ask for dark fiber to all City buildings and/or reduced rates for
customers to help offset costs. Dark �ber would allow the City to operate its own broadband
service without needing to depend on an ISP for internal connectivity. The City could also
pursue implementing public WiFi downtown or at the City's parks in line with the 2045 General
Plan. The City may need to contribute some capital costs depending on how much influence the
City wants over network operations.
In the partnership model there is the option of a closed or open access network. The open access
model would allow multiple ISPs to operate on the fiber optic cable network managed by a
neutral host versus one ISP for closed access. Users being able to select from multiple ISPs of
their choice allows for competition from the ISPs in an effort to keep rates down.
In a closed access network there would be a set price for all users and only one ISP to operate on
the fiber optic Network. If another ISP wanted to enter the City market, they would need to
install their own fiber optic cable. For these reasons a closed access network may not be the best
option.
Report to Redding City Council August 15,2024
Re: 9.1(b)--Accept Report regarding a City of Redding fiber optic broadband network Page 4
With the Council's direction, staff can either cease discussions with fiber development
companies and monitor future fiber deployment in the City or pursue a partnership through a
request for proposals or a request for qualifications, to bring a fiber optic network to the City.
Environmental Review
This is not a project defined under the California Environmental Quality Act, and no further
action is required
Council PrioNity/City Manage� Goals
• This is a routine operational item.
Attachments
EntryPoint Network Broadband Master Plan 2020
Geographical Inforination Center Redding Master Broadband P1an 2019
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I. Executiue Summ'ary
II, StrategY
I I1. S1N�JT Analysis
I�l. Infrastru�ture
V, Assessm�r�t of Existing Broadbar�d Ir�frastructure
t/I, Market Analysis
VI1. Commur�i�� �ng�gement Timeline
V111. Com�unity Enga�ement Plan
Ix. Early �t�rnrmut���y Eng���r�ent
X. Redding Broadb�r�d Survey R�sults
XI. Municipal Bra�db��d Models Com}��risan
XIi. Network Design
XIII. Praject Partners
XIV. Cost Analysis & Phasing
a. Projected C�pital Expenditures and Fun�ing
b. Projected Income and Cash Flaw
XV. Financing Cc�nsiderations
XV1. Legal Considera�ic�r�s
XVI1. Risk Analysis
XVI I1. Summary and Conclusions
Broadband Master Plan—Report to Redding Gity Gouncil—Peepared k�y EntryPoint Netwo�-ks Page � 1
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The Redding,�alifornia City�ouncil has requested this Broadband Master Plan to assist with a
planning and decision=making process for broadband infrastructure for the city;The informatic�n
in this repart will be used ta help city leaders understand whether city owned infrastructure can
lower broadband costs and inccease the value for resider�ts,corrimercial entities,anchor
institutions and the city itself:Additiorrally,city leaders seek ta understand the c�perational
implicati€�ns,important risk factars,and a reaiistic cost framework for managing city owned fiber
l/7 c7Q��U`l�10/7 t0 9'UES'tJOt7S optic infr�astructur�:.
O�COStS c7/7G?�//77,1�i`CJl/�Q' The Broadband MasC�r Plan is a living document that shou(d evo(ve as Redding pursues some or
n�tWOr�C 5p�edS tfje C�ty all of the proposed brt�adband initiatives in this report and progresses fram plarrning to
implementatian to r��rerational activities.The enclosed plan is a companion document to the
S2�'lCS tC1 UI2G��l`Stal7Cl tl?� work done in 2018 by the�eographical tnformation�enter at California State University,Ghico.
poter�tial impact of
Err additican tc�questions c�f costs and improved network speeds,the eity seeks to understand the
;bYO�Q�.bal7C?�//7f/"a:StrUCtUt"E potential impact c�f braadb��ici infrastructure on ecor�omic development,livabifity, public safety,
Ol7 eG0/7017]!C ����ation, health�ar`e,emergency�ommunications,smart grid,efficient government services,
universal aeeess;enviranmental stewardship and smart city initiatives.
de�eldprnent, /i�ability,
. , By pursuing thisi6raadfaand M�ster Plan,R�dd"mg`s leaders are laying the groundwork fior
;(�U,6//C Sc�f�t�/, 2C?�UCat/C1/7; Strategies that cat�fae implet�ented to scal�e r�ear-term and lang-term ehallenges.
healthcare, emergency
Key planning decisians that may be aided by this r`�part include the follovving:
communications; smart
�'i`!Q; G'�J`IC/GIIt C�"OV�'YC)/�`IeCJt • Has broadband infrastruct�tre risen to the l�vel of importance that it'is essential?
SGl"l/IGeS, Ul"J1l/Gi"Sal aCCeSS, • Should the City owtn and cantrc�i k�rcradband inf��structure?
el'Jl1/l"Ol7/7`J�`l'ltal • 5hould the city be a service provider?
SteWarQ�S'�t�p ahQ'Sl7lart • Should the city have ane ISP ar many ISP's?
C/t�///7/t/c�tl�li�S. • Should participation in the networ'k be vc�lu►�t�ry or m�ndatory?
• Should subscribers share in the financial respansibiiityfar infrastructure deployment;i.e:
treat broadband infrastructure as an irr�provement ta the property to mitigate risk for the
city?
• Shouldthe architecture be designed for a Passive Qp#ical netwark(PC}N}or a 5witched
Ethernet network?
• Haw can network design be optimized for cost;functi�nality;risk mitigation,and
alignment with strategy?
• What are the variaus business madels that have been deployed by other cities and what is
the aptimal business model for Redding?
This report seeks to prouide the data needed for city leaders to thoughtfullyevaluate these
questions and implement a strategy that will benefit residec�ts,businesses and ancl�or
institutians for years to came:The key focus of the report is on three potential prc�jects the City
of Redding is considering.These include:
Broadband Master Plan—Report to Redding Gity Gouncil—Peepared k�y EntryPoint Netwo�-ks Page � 2
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1) Increase the Fiber Count for the REU Broadband Project for Gity af Redding iJse
REU plans ta connect its electrical grid for real-time sontrol and managerrrent of its
infrastructure. The Gity has an opportunity ta increase the fiber count of the REU fiber
deployrrrent for use by the City of Redding.
2j City INET—Buiid Fiber t3ptic IVetwc�rk to Connect City Asse#s
The Gity of Redding is currently paying incumbent operators to connect city buildings and assets;
including REU infrastructure:The city is analyzing the potential valae af replacing some ar all its
outsourced cc�nnections with fiber that is owned and operated by the City a�Redding.
�� �iedding Pilot�ollawed by Potential City-wide Fiber Optic Network to Resider�ts and
Businesses
(n 2017,the City of F�eclding start�d the proc�ss of considering a patential €3owntown Redding
Internet UtilitY(Pilot).A whitepaper was prepared which stated that"the Gity of Redding is
cansidering a proposal to research,develop,and irr�plement a new fiber Internet utility service.
This ir�itial service would be offered in the dov+rntown area of Redding and serve as a pilot phase
for k�t�th'r�sidential�nc�cc�mrner�ia!custamers."
This report adds tc�that initial whitepaper and the work done by the 6iC at�alifornia State
University,Chict�by providing prc�j�ctions far per premise costs and total costs.
A potential Pilot ar��has nt�t been selecteci but the gaal would be ta s�lect an area that allows
Gity leaders to properly;evatuate a pr�terttia�city-wide Redding Fiber rtetwork, including costs;
aptional business models,and risks involved in a ubiquitous city-wide fiber optic network..
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Deploying a city-wide fiber optic network is a signific�nt public works and informatian technalagY
project.
Key Strategic Ideas guiding this Pian include the foll�wing'
1. Democratize Access—The economy is naw an infarmation eeonomy and the importance of
digital infrastructure continues to grow in significance.The Gity of Redding has an interest in
ensuringthat the city has robust digita[infrastructure and adopts policies and projects that
make 1 Gig access avai}abfe and affardable throughout the city for residents,busir�esses,and
anchor institutions,including low income,socio-ecanomically disadvantaged,and all K-12
students'.
2. Foster Competition&Choice—The eity seeks ta evaluate options that will increase the
number af service providers and services available to Redding residents.
3. Foster Innovation&Economic Development=City leaders are interested in ways a network
may be used in innovative ways to increase entrepreneurship and business deve[opment
within the city.
Broadband Master Plan—Report to Redding Gity Gouncil—Peepared k�y EntryPoint Netwo�-ks Page � 3
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4. Alignment wi#h Subscribers—City leaders seek to understand the needs and interests c�f
netwark stakeholders ar�d then align policies;initiatives and projects with those'rnterests:
5. Mitigate Risk for#he City—Redding leaders are particularly interesfed in rnfrastructure
business models which mitigate financial and operationai risks to the Gity while at the same
time help the city achieve its ather objectives.
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Broadband Master Plan—Report to Redding Gity Gouncil—Peepared k�y EntryPoint Netwo�-ks Page �4
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The SWOT Analysis included here is not an analysis of current offerings within Redding. Ratl�er;
the analysis cansiders the 5trengths;Weakr�esses,{�pportunit'res and Threats related ta
advancing the prc�jects under consideration in this report:
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Redding has successfully operated and grown the Redding Electrica(Utility inta
a low cost and sophisticated utility operatioii: REU is evEdence of the poterrtial
������°��� value of a IacalCy cantralled utility that can be organized ta be responsive ta
fc�cal needs.The City eurrently successfuify operates and maintains City facility
�iber infrastructure and interconneetivity.
Current service offerings throughout much of the city provide 100+Nlbps
���������� speeds—which is adequate for many purpases.Regulations impose unique
costs fc,r�city-sponsored pra�ect.
Th�E��U projecC tc�connect its infrastructure with fiber optic cable enables
�����..����..���� cspportuniti�sfc�i'theC�tytc�lowercostsandimpravenetv�rc�rkflexibilityforcity
connectiar�s�nd anchor institutions wsthin City(imits.A(onger-terrri
opportu�zity is for city-wide savings and faster;symmetrica(speeds.
Tak�*-�at�risk,churn,varic�us financi�l,risks,changing political and regulatory
������� . en�ironments,camrnunity educatic�n�nd engagement,project execut�on and
" unanticipafiec�te�hnc�l�gieal innovatit�r�s are patential risks and are described in
the Risk Analysis section.
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Comparison of Availa6le Media
The primary media used for internet access today are DSL,£able,Wireless and Fiber Clptic cable.
DSL stands far Digital Subscriber�.ine and it is one ofthe technologies used to prc�vide fnternet
connectivityto homes and businesses: DSL uses existrng te[ephor�e(ines and a transceiver to
bring a cannection into a home or busihess and allows the h�useh�[d ta use the fnternet and
make telephone calls at the same time:;4T&T is the in�umbent telephone ccsmpany in the
Redding area using E7SL techno[ogy. DSL is asymmetrica[(the download speed is much faster
than the upload speed}and is capabCe af dawnload speeds up ta 10t}Mbps:
Goaxial Cabie'uses copper cabCe designed with one physical channel that carries the signal
surrot�nded by a layer af insulation and then another physical channel, both running along the
same axis—hence the coaxial name.Gaaxial cable is primari(y used by cable TV companies ta
Braadband Master Plan—Report to Redding City Gauncil—Prepared k�y EntryPoint Netwarks Page� 5
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connect transmissiort facilities to customer homes and businesses ta deliver cable T;V,and
internet access.CharterJSpectrum is the incumbent cable company in the Redding area. Gaaxial
Gable is asymmetrical and is capable of download speeds up to 94�Mbps.
Fiber Optic Gable sends infaemation down strands of g[ass known as optical fil�ers which are
aboutthe size af a human hair.Thesefiber optic strands are capable aftransmittirig 25 Tbps
taday and researchers have successfu(ly demonst�ated a transmissian ex�eriment aver 1(}45 km
with a data-rate of 159 Tl�ps(https:l{phvs.or�/news12018-fl4-fiber transmission.html�. Fiber-optic'
cabCes carry information between two places using optical(iight-based}technalcagies which
canvert electrical informatian from the computer into a series of iight pulses. Fiber�ptic Gable is
capabCe of symmetrica!speeds up to 25 Tbps.
Because the diff�rence in capacity between fiber optiics and alternative media'rs so significant,
fik��r aptics shauld ka�the foundational media for any new braadband infrastructure project
+�hen financially feasible.
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Wireless lnternet access is made possik�le via radia waves eommunicated to a person°s home
cornputer, faptop,smartphone ar similar mobile device.Wireless(nfernet can be accessed
directly through providers Iike AT&T Wire(ess,Verizon Wireless;T-Mobile�r by a wi�eBess
Internet Service provider(Wi5P).
5G is the 5th generation in cellular networks and refers to a standard for speed and connection.
Because of the extensive marketing around the emergence of 5G,many pe��rle wonder whether
5G will repl�ce fiber optic cabfes. Cn fact,SG depends on fiber optic ir�frastructure.Rll wireless
teehnologies work best the faster they get back ta fiber apfics. The graphic above is not to scale
(fiber has much greater capacity than the illustration represents}k�ut this illastrates the
magnitude of the difference between the different media ty�es.The emergence of 5G is very
early but there is a potentia) revenue opportunity for 5G carriers to ride on eity 3nfrastracture
and contribute to the ongaing cost of network operations:Cellular networks can be symmetrical
ar asymmetrical and capable of download speeds up to 2,t}04 Mbps
Broadband Master Plan—Report to Redding Gity Cauncil Prepared by EntryPoint Networks Page � 6
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Wi-Fi is common irt homes and commercial buildings and is a way to deliver a netwark
cannection from a network hub over a wired connection to wireless devices via a wireless access
paint.Most people access the internet over a wireless connectian, but it is impc�riant ta
remember that wireless connectivity ultimately depends on a wired connection and wireCess
access works best the faster it gets back ta a wire.
6�r����� af ��r��v�rjd��� �� ��pli��tic�r��
a^ s -� m � ! a� 0 �o �� �e id� �o
4-Minute Song 4 MB 3sec 1.5 sec 0,3 ses 0:03sec
5-Minute Song 30 MB 26 sec 13 sec 2.5 sec 0.2 sec
9-Hour Audio Book 11�MB 1.5 min 46 sec 9.2 see 0:9 sec
45-Minute TV Show ZQO MB 3 min 1.5 min 16 sec 1.7 sec
45-Minute HDTV Show 600 MB `8.5 min 4 min 5d sec 5 sec
2-Hour Movie 1.0-1.5 GB 21:5 min 10.5 min 1.5 min 8 sec
2-Hour HD Movie 3.0-4.5�B <6C}min 32 min 4_5 min 25 sec
LargeArchive File 1b GB 'Coo Lung , Slow Better 8d sec
Upload vs Downlo�c���eeds
In addition to the difference ir�k��ndwidth between DSL,cable and fiber aptics,an additional
important difference is that onCy�'iber opticcable csffers the abilityta deliver symmetrical speeds.
In an asymmetrical connec�ic�n,the download s�a�ecls are much faster than upload speeds.
Upload speed is the arn�unt of data a persc�n��r�send�nd download speed is the amount of
data a person can receive in one sec�nd.LI�1oad speeds can be very important for businesses;
including home-based businesses or people wha wor�C from home.Applicatians that depend on
good upload speeds include sending large fi(es,clouc�applicatir�ns like Goc�gl�Docs and Dropbaxt
VaIP,FaceTime,Skype, hard drive baekups and In-hc�use wet�}�osting.
' ������r��r�� �� �����ir�� ��������c� I��r���r�����r�
�
"The Ur�rted States
. A 2017 Deloitte Consulting analysis summarizes the current needs and realities for legacy
{'GCjU/i"GS bEtWE�I� broadband infrastructure in the United States this way:
.$130 and$150 bi/lion
"The United States requires betweer�$13C}and$150 billion�ver the r�ext 5=7 years ta
OI/Gt"1�hE /?�'Xt,�-7 adequately support broadband competition,rural cc�verage and wireless densification.
years to adequate y
SU�C?p0/`t,f?/"OaQ��c`317Q' �espite the demand and potential economic benefits af fiber deployrrrent,the United States
lacks the fiber density in access networks to make#he bandwidth advancements necessary ta
COI7I,n�'tltl0i"7, rU/"r�1 improve the pace of innovaticrn and economic growth
eoUerage �nd wire%ss
Some wireline carriers are reluctant ar unable to invest ir�fiber for the consumer segment
d�/?S/f/Cc�t/On• r� despite the patential benefits.Expected wireline capital expenditures range between 14-18
Broadband Master Plan—Report to Redding Gity Gauncil—Prepared by EntryPoint Netwarks Page � 7
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percent of revenue.Wirelirre operating expenditures can be 80 percent af revenue: Fiber
deployment in access networks is anly justified today if a shart payb�ck period can be
guaranteed,a new fontprint"rs being built,repairs from rebuilding after a storm or other event
justifies replacement,or in subsidized geographies whe�e Universai Service func�s can be used.
The largest US wireline carriers spend,on average,five to six times more on operating expenses
than capital expenditures. Exeessive operating expenditures caused;in part,by legacy network
technology restrict carriers'ability to leverage digital technology advarrcements:Worse,as legacy
networks confinue to descale,the percentage of fixed costs overwhelms the cc�st structure
leading to even greater margin pressure."
Citatian:https:I/www2:de/oitte.com/contentldamlDe7aitteluslDocumentsJtechnotorav-media-telecommunicatiansJus-
tmt-St�ReadV-the-need-for-deep-fib�r-pov.pdf
Th�C��loitte rep�t-#is not specifie to infrastructure in Redding,but the conclusions from tl�e
b�iaitte report are g�neraliy applicabfe.Telco and Ga6le operators in U.S.cities often have fiber
to an aggregatian point and then legacy infrastructure from the aggregation point to the
"Fl,�J�'l"G'�'plOyl7')E'l�t premise.
/�I aCC�'SS 17�'tW01"�lS The primary finding of the Deloitte report is that legacy infirastrueture needs to k�e replaced with
lS Ol?f)/�t.t5tlfl�Q� ���er Optic cable in th�near-term to meet bandwidth demands.There is no ir�dication that
inc�mbents intend to replac�legacy infrastructure with Fiber Optic infrastructure in the near
tO�c'?�/lf c'�S�IDYt term and even if th�y did,this�apgrade would solve the base infrastructure probleirw but it would
not salve for the i��k of competrticrn ar premium pricing for 6ig speeds.
payback perroa'
Legacy copper��d caaxial infrastrueture will need to be replaeed with state=of-the-art
Can 'be aChleVed �� infrastructure in arder ta meet the ever-greswing demands for greater bandwidth and faster
speeds. An importarst t�ues�ion for cities is uvl�ether unique value can be derived by the city
ovvning and controlling this infrastructure or whettrer a private company should continue under
the existingstructure.
Ideal infrastructure include�more than just the fiber aptic cables rur�ning thraughout the city:
Infrastructure consider�atic�ns include the el�ctronics at bc�th ends of the fiber as weN as systems
that manage and contral the netwark.As the Gity of R�dding evaluates whether it will ga fgrward
with any of the proposed infrastructure projects,the fc�llawing cansic�eratior�s should be part of
the decisian-making framewark:
• Capacity&Speed:Tne demand for bandwidth anci speed wi(I continue to graw:
• Emerging Services and,4pplications:5�,connected vehicles,edge computing,and virtua[
reality are all examples of emerging applications that have infrastructure dependencies.An
important consideratian is how flexible the business model and technology systems are t€�
enable whatever may come.
• Cocal Gontrol:An advantage c�f a network that is loealfy controlled is#he abiiityto manage
the responsiveness of the network to local needs and ta encourage innovatian,adapt to
opportunities which may make it possible fc�r new services to emerge;
• I.ocal Resilience:Gan residents and businesses continue tc�communicate over the
infrastructure locally if,for sc�me reason, middle mile car�nectitrns are severed:
• Privacy&Security:Subscribers are becoming increasingly sensitive to seeurity,privacy and
confidentiality controls.
• Risk Analysis:Consideration of the risks for al!potentiai network stakeho(cfers is an essential
part of the decisior�-making process:
Broadband Master Plan—Report to Redding Gity Gouncil—Peepared k�y EntryPoint Netwo�-ks Page � 8
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In the Gity of Redding most residents and businesses subscribe tc�wireiine internet seruices from
the cable operator{GharterjSpectrurr�)and felephone incumbent(AT&T)-
CharterlSpectrum
CharterjSpectrum advertises the foliotiving packages ic� Redding:
��i� �� '� z� Entrc��luc�c�ry Pricin� ���� Star�dard Pricing
���}��� ��}�n(i1p'����}��t;,Data C�p Not Published
� � ] [�a�a cap��t���rsn�a�
100 J 20 $49.99 $b4.99
400/20 $69.99 $89.99`
940 J20 $109.99 $1�9.99�
Research on Charterj5pectrurn's service afferings and pricing yielded promotional 12-month
introductory,pricing.Charter Spectrum does not publish theirstandard pricing an their
vu�bsite.��sed upon c�ur review c�fi CharterjSpectrum invaices we estimate a$15-$24 difference
between the introduct�iry price and the standard pricing.
�Standard Pricing fv�`400 Mbps and.�4t�Mbps have not been confirmed.
AT&T
AT&T advertises the following pack�ge�in Reddir�g:
Speed((Ulkrps) Intr`> , y Stan �, Prtc�,g SU�B � tJr�fir»ited
�C7vwn/Up� ���� � �; ��� ' � ��ata Ca � �� Ad�lition�l C3ata Clata Plan
t���� ,�1 t � �z����,� ��� �
'����f C#�'�� s St') ����������� ��� z������ ���
�..5-Zs!� S�o.ao $so.�a ' +��o.�o �/a
Zoo/so $�o.00 ��o.a� �-��,o.00 +�3�,0�
300/12 S�o.00 Sst�.��i +��.�.00 +���.00
l000/Zo $Zo9.g9 Sz��.�s +��o.00 +��a,o�
AT&T offers fiber cannecfivity to some busir�esses and residential neighborhoods in Reddi�g.The
majarity of AT&T cannections in Redding are[7SL based. Of those residents who responded to
our survey for current pricing,there were no AT&7 subscribers:
The GIG m Ghico provided a thorough review af served and unserved areas in Redding as urell as
a description of the service praviders operating in Redcling. The Chico data suggests that 95,41
of Redding residents subscribeto the internet through wireiine providers and the majority of
those are cannected via the incumbent cable aperator.
Broadband Master Plan—Report to Redding Gity Gouncil—Peepared k�y EntryPoint Netwo�-ks Page � 9
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Broadband Media 8�: IVlaximum �peeds Avail�ble ir� Reddir�g Tod�y
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�;aoo�bp� ,r000��p� ',�o��bP� ,,�����p� �,������� �,�����R�
�
9Jp�to 20 Mtrps�dawn9oads� L3�r.to 9A6 fN4ps downloads�� Up to�1 66ps downl�atls
.�Up Yo A Mhps uploads Sr lJpto 2[3.Mbps uplo�ds �&U�to SO.Mbps uplaads
The illustration above shows t�re maximum speeds avaiiable in the City of Redding today, However, it is important ta note that
although D5L is available in over 9(l%of the city,the maximum DSL speeds are not available to all premises. Gable connectivity is
also available to most residential ar�d business addresses.. However,aecess to#iber aptics is available to a limited nurr�ber c�f
business customers. It is also important tca nt�te that aIl speed�ilfustrated abave are"up-to"speeds and are never guaranteed fay
the service providers.
The Graph below illustrates the amount of money;�edding resid�ntial customers will spend on internet access going forward at
the current average of$65 per month for 35,000 Recicfing;hcaus�halds with��l%subscribing fio wireline internet.
Estimated Redding Exp�nditc�res f�r Internet
7,4�G0 ����s�r���c�r�����rc�r�ssav-r��r
¢rst�trs�t:��a��;�!��'�`,'
$Cb0 �� , Additit�nal amciunt assuming
19'o annual p�t�aulation gri�wth
{ .
� 't u£'7'f�{� p/��A -
���1 �. t�'}ff}jt$�sl{}t{f'3 y# ��'°ll.l�X1 fkC'�Cpl$I4Ct���#"t'i�G11��IS�SUCYlI��.
#JS��'s�t1 SU�t� t��r� ��{o�PYt'EU��ttl�8'CIS3P'�
tl t
t�st{l��i{4s�s�tr,�t t�ts ���rt
� { 4Ss {� sii fl��i31}�t3t l�.
, #i4���r���r�sit`�Z�i�fS�t}��}t����ititxittl��s���S1t�S�.
}ZsStu rt,ta- 44f 4 1��)r4as„
� �SI�,��t��{��}�{s4t�t�f�iliJti��r}'',<�t�'4�)�.{���
4[}Q „ s jt r�i4�,�7s�s�4ttit�k}t�t,{t�a�31 a, .
tk�4����s�{t��dr��t�ti�r�u
J tft7 1{�{t f�4h�k.#„�,rv,
��}�>��ta�;{� ' �►+�F�� ���� ,4mr�untpaid kxyReddang
F
���� �,r,r;���rtitt�,� �o€�se�ic�(c3s ove�2(7 y�ars
t�4..:��{S
� yy C� y/y C� ryy�
�W il 1 V'� �J� G41
Broadband Master Plan—Report to Redding Gity Gouncil—Peepared k�y EntryPoint Netwo�-ks Page � 10
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Evaluation& Marketing 5 Grassroots Clnor-t�-Door
T���� Educatian Promation Engagement Safes Effort
�Y� ____MMMMM___M�MM�. ___�
. ___..,��
-�- °�°�. ______ ��.��.��..�� �� ����
MonthS; 7. 2 3 4 5 6 7 8 9 10 'i 1 12
C�c��ir��r�it� ;E.���g�r��r�� �'����
�he sample Camtnunity Engagement Ptan that fa//aws is;burlt on an assumptrori that
Reddirl�'t�ilf go fc�r�ard t�vitt��city-wide project, Changes in project scope wrll change the
Gommunity En,qa��ment appraa�h:
Goa]s &Objectives
The objective af a h'�d�'ir�g Cc�rrimunity�r�gcrg�errzent P/an is ta achieve a minimum of a 40l take=
rate for hames and busin�sses within F�edding City iimits.Additionally,a scale caf 1Q,000
subscribers is an important target f�r the project tc�be operationally sustainak�le. In the financial
section later in the report,the fin�ncial models are built to a target af a 6Cll take-rate.The
madeling can easily be adj�st�d fic�match actu�l take-rates.:
Evaluatior� & Education
Document the current state af broadband and deterrnine the l�cre�r�f interest among residential
asers and business awners.
�t�rnr�unity��rv�y
Greate a survey for residents and business ovvners to deterrnine fhe level of interest in a
municipal fibernetwork. Based upon the level of interest,deveiop an educetion and pramotion
progra m.
Publ��li E���catic�s�a( Ir�fc�r ��o���
Create a website specific to the municipal fiber program. (3utline the cc�re message of broadband
as a tatility that will supportan environment of ehaice and subscriber control. Use customized
videos ta�ducate oniine visitars an the folCowing:
a. Functionality of the community fiber netwark
b. Options for services
c, Frequent(y Asked Questions(FAQ's)
d. Inquiry Form where community members can submit questions to the municipality
Broadband Master Plan—Report to Redding Gity Gouncil—Peepared k�y EntryPoint Netwo�-ks Page � 11
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�Vl�ppin��sa��irnursi�y I«��r°���
Distribute an"1 am interested"sign-up farm with associated heat map where residential and
business praperty ov;rners can register as someone irsterested in municipal fiber.
Evaluation&Education Budget=$3,000-$1�,00t�
Marl<etin� &Promotior�
Redding issues a series af Press Releases and sends out inserts in mr�nthlyutifity bills promc�ting
the municipal fiber pragram,dciving traffic to fiber website with the goal of educatfng
community members and generatir�g interest and encouraging comrvtunity participation in the
sur�t��. ;
llse all available saci�l rnedia platfarms(Facebook,Twitter,etc.}to promote the fiber network.
�i�igl�bc�rnc��cid �r��t'��ce aracl��rd �igris
As construction (fiber build}k�egins in a neighbarhood, Redding will past signs at neighlaorhood
�:ntrances announcing the construction and ietting residents know tf�ey can still sign-up to get
cc�nn�cted�rt�ile crews ar�irr the neighborhood.
As homes are cc�nr�ected in the nei�hborhaad,yard signs ace placed in the yards of subscribers
ind'rcating that th�hot�e now enjc�ys a fibec broadband ccrnneetion.
Marketing&Promc�tic�n Bucl�et=$10,t�{�(3-$15,0(70
Grassroots Enq�emer�t
�bpert F9c�u�� Ev�r��ts
Redding halds a series o�flpen Houses wh�re residents�r�d busirtess awners can hear an
educational presentation about the fiber project,ask qt�estions about the fiber project,become
educated about the Redding fiber plan, business moc��l,ete.
Open Houses are promoted using utility bill inserts,press r�leases,pubiic service
announcements,lacal news reports,city�r�bsi��s,social media platfarms,etc:
Open House events are intended to educate residents,promote the network,and identify�iber
Ghampions irrthe various neighbarhoods(fiber zones}. FGber Charrrpions are individuals that are
committed to p�omoting the network within their neighborhaad. Fiber Champians are alsa
incentivized to be the first neighbc�rhood tt�get connected(inifial fiber zones ar�connected in
order af take-rates—highest to Cowest).
Fibca��h�mpi�in�
Fiber Champions assist sales efforts within the`rr designated neighborhood�fiber zone). They
organize and lead Cottage Meetings where neighbacs come together to discuss the Redding fiber
program. Redding leaders and empl�yees provide suppart to the Fiber Champians in their
efforts: Fiber Ghampions drive conversatians and contractual cgmmitmet�ts af neighbors via the
Daar-to-Door Sales and Education campaign:
Grassroots Engagement Budget=$2,Q90-$5,(?00
Broadband Master Plan—Report to Redding Gity Gouncil—Peepared k�y EntryPoint Netwo�-ks Page � 12
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Daor-ta-Door Sa1es Effiort
Netw�rk sal�s agents(typic�lly an independent group representing the network)contact
res'rdents and business operators witfiin the planned netwark fc�otprint t�r answer questions
about the network and ascertain the patential subscribers'intentions regarding their
participation in the network, [Yes(t�pt=in)or No(Opt-out)�•
This direct persort-to-person contact gives everyane in the comoriunity an opportunity tc�ask
questions,clarify their understanding and express their ieve!c�f interest in participating.
To rnaximize the effectiveness af this process,prior ta canuassing a neighborhood,door hangers
are distributed ta every home and business infarming property owners that a representative will
be stt�ppin�by tt�c�xplain the value proposition,answer questions and get their(�pt-in/{7pt-ouf
de�ision.
It is important that R�cicling support this effort thrc�ugh public natifications,press releases;mass
emails,websites,social'media sites,mobile applications,and ather community outreach ver�ues
available to Redding.�his may include outside professional marketing andJor PR firms.
Qacrr-to-l?c�c+r Sales Effort Butlget=$100 per Premise that Subscribes
[Sign-up Fee or Wrapped iato the lnfrastructure instailat�on Costs]
Total Redding Crt�mmunity Engag�rr�ent Plan Budget=$15;00(�to$30,Q0�3+Door to Door Sales
Comm'rssions.
Please Ntte Th�v�rork csutlin�d in the uari�Eks 3teps of tlzis C�r��r�ri�i�ity Fr��a���r�cnt P(�n,�n wFii�I:c�s part,c,sn k�e
mar�aged kay ir�iernal R�dr�ing p�rsonnel or c�r�be t�utsour�ed tc���rofies�icrt�I rnar`keiFn�anc��t�mc�tic�E�s�rg�r�i�at€�ri:
��r�� �c�r�m�r���� �r�c��������
As part of the Broadband Plar�ning Proeess�the City l��nager's offic�'organized meetings with
incumbent operatars including r�presentatives of CharterfSp�ctrum,AT&T and I�acal provider,
Shasta Beam.Charter expressed its'interest in pre�ervir�g the status quc�via a letter to the City
Manager, Mayor and other city leaders.��E�e"C senC a representative to the meeting but has not
taken a strang positian apposing or supparting a municipal network in Redding, I.ocal VtlISP,
Shasta Beam has asserted its strong support,encauraging the city to deploy a city-wide fiber
optic network.
The Gity Manager's office held meetings with individual city leaders and muftiple w�rkshaps for
key community stakeholders inc(uding Shasta Union High Schoc�l C3istrict,Shast�Gounty�7ffice of
Educati�n,Simpson University;Shasta College,local hospitals,ather healthcare providers�the
Chamber af Commerce,representatives from the business community and lacal religious leadecs.
Fram these meetings;there was support far the City of Redding to continue explc�ring the
feasibility of implementing locally controlled broadband infrastructure.Additionally;certain
stakeholders made specific requests far access to infirastructurethat wauld be beneficial to their
operations if the City goes forward and builds out a rr�unicipa!fiber network.These requests
were documented by the City Manager's affice.
Broadband Master Plan—Report to Redding Gity Gouncil—Peepared k�y EntryPoint Netwo�-ks Page � 13
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in November 2019,the�ity deployed website elements to k�egin the'pracess of educating the
public regarding its evaluatic�n of the feasibility of a city sponsared fiber optic network�The City
Manager's office distributed an initiaC survey to Redding residents assessing current sentiment
regarding existing services and the level af interest in a municipal network. The survey was not
developed by professionaisurvey administirators and these findings are likely influenced by
selection biases. Key findings from the survey include the following:
Total Respc�rr��s 288
��a�pc�rt Networf�- .°
13 N o 4.51°la
52 Possibly 1$.C}6%
223 Yes 77.43°l
Internet Speed frnportanee
And the Survey Says:,. o �ot rm�arta�,t a.�oro
69 Impartant 23:961a
z19 Very Impartant 76:041
288 ImportantJVery Important 1QQ.00°fo
Internet�ost;�tr�portance
9 Not Important 3.13°l0
38 Empartant 34.(73°l0
181 Very lmportant 62:85°la
279 Ir�'�pcirtant/Very Impartant 96.8&%
'Choice in ISP and Plans-ir��crr��rtee
�8 Not Impctrt�nt g:7Z°lo
105 (mport�nt 36:81°l�
154 Very Irriportar�t 53:471
260 Impt�r'tant/il�ry Important �C7.28fa
Rate Current lSP
26 Goad service at good price 9:(73°la
142 �apPY with service but wish it 49;311
cost less
1�� ISP is slawer than I want most 41:67°l0
of the time
Average Speetl Experierrced
56 1.9 24 Mbps 29.441
29 �S.Q=46.0 Mbps 2a:07°l4
36 5Q.0-74.0 Mbps 12:50°l
25 75.0-96.9 Mbps 8.68%a
110 10t7.0=240.0 Mbps 38:19f
15 25Q:Q-46Q.0 Mbps 5:21°l�
5 500:0-980.0Mbps 2.741
1 1000 Mbps 0:35°l0
11 Na Response 3:82°I
Broadband Master Plan—Report to Redding Gity Gouncil—Prepared k�y EntryPoint Netwo�-ks Page � 14
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���r���i��l ��������� ����I� ������i�c��
The Institute for Local Self Reliance has mapped municipai networks throughc�ut the United 5#ates
using an interactive map that can be found at the follQwing link:
https://muninetwarks,or�lcom munitvmap
To compare the various models that exist in the United States today;a mix of prominent
municipai fiber optic projects wereselected ta illustrate the types of models that have been
deplayed.The foilowing comparisan summarizes different approaches ta funding and operating
munici��l brc�adband infrastruct�re and services followed by a description of the advantages�
disadva�itages df e�ch:
�a � � � ��. �.
� �
; Chattanooga;TN 179,139 Electrical Utility ISP Yes 60°l0 $68,t7CJ '
I�Lafayette,LA 126,OClQ Electrical Utility ISP Yes 4Q°1a $95,95 '
i Westrrrinster,MD � 19,000 , € City F�ber,Private ISP No 2d°fo $89.99
,__,.�..w_ ._ ��....__
� �
Huntsville,AL � 194,585 # Dark Fiber Open Access Yes Not Publisl�ed $70.00 ;
Sandy,OR 10,000 Municipal ISP No 60°l0 $59.95
_ 4.,,w,t __„�� x,.., _ _ _ - - �-
�ongmont,CO � 86,t}C�t� '• Elecfirical l�tility ISP Yes 55°l0 $69.95 !
; Ammon;ID 17;d00 e Atatomated O�r�n Access No 65% $46.50 '
_ �._.� _ _ �. _ _, _. _ _
Monmauth,OR 25,083 Municipal iSP No 80°l0 $129.65 '
_ _ _ , __ _ . - — - — -
Lexington,KY 321�959 � Private Part�er t7wn�ed ; � fVo NoC Publts�ed $59.J5 =
_, _ �.,„�..W..,_ __ � n,.,,,_. wu�.,r,�,_ _ ,�u._„y ,_
i Santa Monica,CA 110,000 C�arl�Fiber Business Qnly , No NJA NJA !
'. Fart Gollins,G0 165,000 Electrical Utility 1SP Yes % Ear(y Stage $54.95 !
UTOPIA 150,C7�0+ ManuaC t7pen Access � , No 15°la $70.0� !
Municipal Broadband Model� Defined = Summary I Pras I Cons
�i�y C� r��d &op�r���d; �ir��l� €SP
Summary;The city owns and operates the network and is also the sole service provider on the
network':
Pros:This model can be successful when incumbent aperatQrs have some combination af the
following: monopaly or near mc�napaly status;high prices, poor infrastructure,slow speeds,a
poor reputafiion and widespread customer resentment.
Cons:A single JSP daes not significantly expand choice or competitign.7here have E�een very f�w
City Owned&Operated,Single!SP deployments that have been suecessfuf and those that have
been successful are much smaller than Redding,The city is essentially replicating the incumbent
madel and competing againstthe irtcurrtbent head-to-head.This modei leaves the city vulnerable
6roadband Master Plan-Report to Redding Gity Gouncil-Peepared k�y EntryPoint Netwarks Page � 15
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to the incumbent dropping their price to influence the municipa!take-rate and destabilize the
municipal network.
Examples of this model include Sandy;OR and Monmouth;OR:
��rr��cip�� �I���tri��l lJ�il�ty�l nec� � t�p�ra���ld ��r�c�le ��P
Summary;The Municipal Electrical Utility owns and operates the netwark and is alsa the sole
service provider on the netwaek.
Pros: Most successful 5ingle ISP municipa(networ►cs for cities the size of Redding have adopted
the Elec�rfcal�Jtitity madel.The ECectrical Ut€lity has fhe advantage of having an established
reputafian in th�cc�mmunity.Electrical Utilities often have financial,customer service,and
�rrgineering experti��that may be beneficial to the network.The skill set for Outside Piant
personnel for a municipal network is sirnilar in kind to the existing range of skillsin an Electricai
'Utility.l`he likelihood c�f success increases in instanees whece the incumlaent operator has
monopaly or near mc�rtopaly status;higherthan average prices; poar infrastructure;slaw speeds,
a poor reputation and/or widespread customer resentment,
Ccsns:A sin�C�1SP does i�c5t significantly expand chaice. Expertise in network operations will need
to�e enhanced or cleveloped.`This model is essentiaily repl'rcating the incumbent model and
involves competing against the incumbent head-to-head.This modeC feaves the city/Electrieal
Ut'rlity vulnerabl�to the incumbent dropping their price to impact the#ake-rate and destabilize
the network.
Examples of this mc�del include Chattanc��g�,T�1 and longmant,C4.Fort Collins,C4:is in the
early stages of deplayment and is re�licating this rnodeL
Cl�rl<��b�r, �per�1�cce��
Summary: Dark Fiber Op€�n Access i�a rnc�cfel where ti�e�ity builds infrastructure ta the curb and
the subscriber then seCects an ISP as its provider and t��ISP finishes the connecti�n to the home
with its awn infrastructure and eiectronics.
Pros:Open Access increases choice for c�nsumers.C3�ierating a dark fiber netwark is less
camplicated than operating a lit network.�`�te[?�rk Fiber m�del enables Pubiic owr�ership of
infrastructure,
Cons:The Dark Fiber model gives up control over last mile infrastructure,i.e.,the drop from the
curb to the premise.The Dark Fiber model there#ore limits the usability of eac�r strand of fiber.
With an isolated dark fiber connecti€�n;it is impossible to connect to other s�rvices that may nt�t
be available thraugh the ISP that controls the drop to the customer pre�nise.The Dark Fiber
Model may not scale easily due to difficulty in anticipating the required fiber count to meet the
demand.This can create significant complications for the network;operator,
An example of this model is Huntsville,AL;
Broadband Master Plan—Report to Redding Gity Gouncil—Peepared k�y EntryPoint Netwo�-ks Page � 16
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Summary; Man`ual Open Access is a mod�l v�rhere the netwack is lit end to end,This means that
the network operator places and controls the electronics at both ends of the netwc�rk. ln this
model,switching service praviders can be requested fr�rm a web portal and may appear to be
autamated butthe network provisioning is not autamated.
Fros:;A manual Open Access network increases chaice for consumers:
Gons:Operating a Manual C}pen Access network is more complex than operating a Single ISP
network because of tFse requirement for humart manag�ment of network tasks.Ariy increase in
the number of service pravide�s operating on the network adcls to network complexity.
Art example of this model is the UTOPIA Network. UTUPIA is the largest manual open acce�s
rtetwork in the Unite�5tates with just over 2tt,0�0 premises connected. UTOPIA struggled under
heavy debt obligatiorrs for 15 years but is now operating on a sustainable traj�ctory. In addition
to UTOPIA,there are a number of Manuai Open Access netwarks in Europe:
��tc�r��t�c� C3p�€��cc���
�ummary.Rutomated C3�r�n Access is a mode(where the netwc�rk operator places electrr�nics at
both ends of the n�t�vork and s�abscribers can dynamically select service providers in real-time.
Software Definecl�Ietworking is us�d to autamate variaus netwark management tasks.
Pros: Multiple s�rvice providers c�n de(iver services s�multaneously and independently across a
single wire.Wh�n a subscriber sc�lects a n�w service provider,the provisioning is done using;
automation and th�refc�re t�appens on-dem�rrd. The automated provisioning creates a
marketplace for services which`rnclud�s i5P's ar�cl private networks fc�r other services,The ability
to switch service providers on dernand increases che�ice and competition.This network mode[
also includes the abi(ity#a pre�vide local network resilier�ce via(oeal communicaticrns if
cannecti�ns over the middle mil�are down. ,
Gons:The model was first implemertt�c!i�s]�te 2016.Ammon, ID is the only city tha#has a fiull
implementation operating:5calabi(ity has been demanstrated in a lab envir�nment but not in a
city the size ofRedding.
Examples af this madel include Ammon,lk�, McC�EI,l[��r�d Mountain Harrte,ID:
Disclosure:E�7tryPoint�letwcrrks avvns and c�per���s,a SaaS made�A�itc�mated t�per�Access s�luticsn ar�d��
the t�ch�oEo�y solutiern�rc�vider ir�these rietworks:
F�riv�t� a�ctcir� r��r� CJ�er�tc�c, ��r�g�� I�P
Summary:A private builder designs, builds and operates a network:The private entity is also the
sole ISP on the network—replicating the incumbent model:
Rros:A private buiCder and ape�-ator assumes al(the risk and does the work of overseeing design;
project management,canstruction,customer acqu'rsition and operations.This model increases
the choices available to consumers with minima[ob(igation or burderr far the city.
Cons:The new operato�is replicating the incucnbent madel.There is no iocal control aver
infrasfructure and ISP choices increase by just one new provider.There is no guarantee that the
operator will address the digital div`rde.The network can besold to another operator.
There are many examples of over-bui(ders but Lexington, Kentucky is a recent exarriple:
An example of this model is Lexingtc�n, KY:
Broadband Master Plan—Report ta Redding;Gity Council—Prepared by EntryPoint Netwacks Page � 17
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5ummary:A private builder designs, buiCds and operates a rretwork.The private entity uses an
Open Access model rather than the incumbent model for service delivery:
Pras:A private builder and opecator assumes ali of the risk and does the work of overseeing
design,praject managerrient;sonstruction;customer acquisition and operations.This model
provides an increase in the choices available;to consumers at almost no cost to the city, Risk
exposure ta the city is very low.The private I�uilderf operator builds and stabilizes the netw€�rk
and may give the city the option to acqu[re the network after an agreed upon number ofi years
fnr a pr�rr�iurn price above the actual cost to develap.
Gcsns:There is no 1��a1 cantrol over infrastructure>There is no guarantee that fihe oper�tor will
address digital divid�€ssues.A private ownerwill be free ta seil the network to a new operator
that may or may not kte aligned with cammunity objectives for the network.
An example of this model is Fullerton,GA(SiFi).
Fundir►� Can�ider�tic�r�s
Tax Rlon-Parti�ipants—Should a General Obligation Band be used far broadband
infrastructure?7c�day,mast cities do not f�ave the political will to build broadband infrastructure
thraugh a fundin�mechanisrn that taxes a11 residents,essentially mandating participation,
regardless of whether the resident cho�ses tc�'participate as a consumer�rf network services;
Voluntary Participation—The alternative to taxing all residents is to deploy a business model
that allocates netwark costs tc�:w�csluntary particip�rtts.Aliowing sabscribersta voluntarily apt-in
to netwark participation ernpt�wers individual residents,�liminates Political Risk and can increase
public suppart far the n�twork; AISc�wing subs�ribers to vt�luntarily opt-in or apt-out of network
participation is less efficient and m�re ex�ensive than a made(that mandates universal
participation.Voluntary Participatian may exaeerbate't�e digital divide.
Broadband Master Plan—Report to Redding Gity Gouncil—Peepared k�y EntryPoint Netwo�-ks Page � 18
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Network design cansiderations shr�ufd be driven by the city's strategy.Irnpartant considerations
include the decision to have one ISP or many 1SP`s.Rnother design question has to do with
whether the city will deploy a Passive f3ptical Network(Pt?N�or a Suritched Ethernet
architectuee;
Passive Optical Networl< (PCIN)
Summar�r:P�ssive{3ptical Networks(Pt7lV}and Caaxial(Cable} networks folfow a Bus
architecture.
IPros:Most incumbertt network deployments foilow a Bus Architecture via either P{�N or Coaxial
infrastructure and the uvidespread deployment af this architecture has led to a reduction in the
compfexity of deplayment through integr�ated systems.
�Cons;A Bus architecture is a shared architecture.A spiitter is pCaced in the field and a connectian
i�c�f�en shared between�2 ar 64 premises:The 8us Architecture leads to rrtore packet collisi�ns
on th�rtetwark;wFsi�h c�r� result in high amounts of packet loss during cc�ngestia�.It is m�ce
difificult to isc�late�r�d troubleshcac�t fauEts in the network with a bus topology.
Switched E�hierne� Netwc�rl<
Summary:Ethernet f�ll�vus�switchec!�rchit�:cture.
Pros:The architecture provides�dedicated connection for eaeh customer rather than a shared
connection and the customer experience'rs s'rgnificantly better in a shared acchitecture.This is
due to the fact that the thresughput of switch-krasec!ar�hite�ture is superior to a bus-based
architecture during time�cr#networl�cortgesti�an.
Cons:Fiber count in the field is increa'sed.
Passive Clptical Networl< (P0�1) Design ��tvit�hed Ethernet Networl< Design
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Broadband Master Plan—Report to Redding Gity Gouncil—Peepared k�y EntryPoint Netwo�-ks Page � 19
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Proponents caf PON Architecture will argue that PC}N is less expensive than an ethernet design,That was true historically,T�re
illustration below shows that the variable costs of a switched ethernet deployment is now equal to PC7N.This change in pricing
differences was driven by the fact that all Data Center deployments use Switched Ethernet architectures and the enormous
growth af Data �enters over the past 20 years has driven down the cost of Ethernet electranics.
I�C��-�8�=t;rvc�r���c����qu�pr�r�nt Ft4��r�a�t����'vucss���,�c������,�prr��r�t
Lesc��ptidn ��aatCmst L(ty �rte��ded��st C3escraption �&raftCs�st QtV Exte���dCost
i�,5t�ii p������ 5���:scr �: �s�c.s� sw�W�tc�, ��,a�c�.�a z 5�,��a.��
(�LT $4,1�6.5� Z 58�393.�J�' SFP $1�.6tJ �� $1,�52.t]t}
ia��s��+ ���a.s� z ��;�as.�cr
2x Z GE 8t68 CSFP $��Z7a5{3 24 $3;78Ct.C1C7
14ccess Line-iwp $�9;5�45.3� Aceess Line-aa�a �a4,552.t}(3
Nurrrber c�#5a��is�rltaers Senred �6 �lum�e�c�f Su�s��it�ers 5erved �6
Avera�e Ccsst per su�ascriber ��51.�I Rverage Cost per s�,bsc�ib�r 547.42
�'t��i-�r�rrr�s����r�;s���� Et��r��t-�'r�rr�����qiis`g�c°�ent
C�escrBptiora �f�it C�ist qty �xtend�d�ast bescripticin ifra€t Ce�sT QtY' fxteaa�ed�c�st
i�,aao�o�w� ��zs.1� � �zzs.�.s v��,t��ea�v�� �3�a,�� �. �3�a.oa
R€sc�ver supply fic��7L1�GE G�!t a��-�tl � �I2.C�� . 1�7�C18as�13S�3tarr�-Tx/155t1nm fLX i�km �9.4�7 1 $9,t}(}
Rrerr�ise Line-up $�37.15 ' �'�'emise Line-u� $339.Ctt�
Numh�r�f Suhscri6ers 5arved T hi�tn����caf Su3ascriba�s Se�vec� 1
Aver�ge Cr�st p�rsu�sc�ib�r $237.i� �t�rer�ge Ccast pe�su�scri�ser $334.Ofl
��C�P"�ET`�[S�N�C��19��,,GJl�7tYt�?�t��C�S�S ��S"P➢"�6'Y"kN�i�E��i�'€"�3��EC�UE�SkY��C�i�CSS�S
Tatal�ast pee 5u�serit�er �3�B,f� � Tcatal c�zs��ae��uka�rib�r �38E�.42
The aboue camparison between i�ON and Ethern�fi also serves as a comparison betvveen a tUan-
Upen Access system and ar�Automated C3pert Access syst�m,Nearly all traditional single ISP
municipal networks that have been deplr�yet�rn the U:St have foll�wed a PON architecture;with
much of that dep(oyment from the vendor specified�k�+ave.We are r�ot aware of any A�tarr�ated
Open Access systems that have been deployed on a P�N architec'ture, Manual C7pen Access wi1(
work across a PON architecture.
������� ��������
Middl� Mife
"Middle-mile"is an industry terr�r that describes the network infrastructure that conneets local
networks to service providers at an Cnternet Exchange Point:Far example;Redding wou(d
connect ta an exehange point in either Portland or Sacramento.The"last mcle"is the local part of
a communication network which conr�ects a service provider to a custc�mer:
For modeling purposes,propasals were solicited ficar connections from Redding to Sacramento
and the responses belaw were received. ff Redd'rng's(eadership decides to�nove forward with a
project,these proposals can be formalized through ar� RFP or MOU process end city leaders ean
specifya longer term if desired.
Broadband Master Plan—Report to Redding Gity Gouncil—Peepared k�y EntryPoint Netwo�-ks Page � 20
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Middle Mile Pricing from Sacramento to Redding
C?ption 1: 10�bps
A�ocation.QTS Data Genter, 1�.00 Ri Market Blvd, Sacramentc�,CA 55834
Z Location:777 Cypress Ave;Redding,CA 96001
3-year term MRC:$2175, NRG.$1�t�0
Option 2: 106bps
A Location: Integra Data Center,650 J Street;5acramento,GA 9583A�
Z Location:777 Gypress Ave,Redding;CA 96001
3-yearterm MRC:$2250, NRC;$10Q0
Rec#cfin�would lae respansible for any cross-cannects at the A and Z Locations
Appraximately 4,00(I customers carr be served by a 14�bps circuit,Peak usage is an important
data paint for monitt�rir�g and is used tc�infarm capacity planning.As the customer base in
Redding grows,capac`r�y will need to be adjusted. The cast of this middfe mile eonnectian can be
allocated on a per subscriber basis and will be paid by sul�scribersto the ISP,The ISP will then
reimburse the City of Redding for this cosf based an its proportionate market share.
Mit�dl� MiCe Ris�Cs
The primary mi�ldfe mile risks are 1)lack af redundant aptions on divergent paths,2}prieing risk
and 3)the risk c�f being strandeci c�r isofated vvithout a viable path south ta 5acramento or north
to Portland.Th�r�*are no kn�uusrn middfe r�ile carriers currently going narth tg P4rtland from
Redding.Thece is��rczup irt Medford,Ure�c�r�that is interested ir�establishing a north-bound
route from Redding and they are eualuat'rng the feasi6ility afi establishing a data center and
internet po'rnt af presence in RedcCing.A north-bound route woufd mitigate the Iack of diverse
middfe mile options out of Re�}clin�:Pricing risk�nc!the risk of getting isalated or cut ofF from
internet access are both pas�ible but have a Ic�w Iikelihoc�cl c�f occurring.A nor#h-baanc[mic{dle-
mile route would mitigate a(I three risks frar the City of f�edding:The fiber-optic line corr�ing in off
a trans-Pacific Ocean cable will land in Redding in 202t3 or 2fl21:This may pravide a divergent
path for Redding.
Internet Service Providers (ISP} Partn�rs
An Internet Service Provider gives subscribers access to the internet. If cityleaders choose to go
with a single-ISP model,the Gity af Reddi�g has the aption of becom'rng an(nternet 5ervice
Provider to deliver internet access to Redding residents.Additionally,the eity could sir�nply be an
infrastructure operator and partner with a local l5P Iike 5hasta Beam t�deliver inte�net access. If
City Council decides to pursue an Open Access Madel;the Internet Service Praviders{I5P}listed
belaw have expressed a verbal interest in participating in a Redding Municipal Netwcrrk,The
participatian af these!SP's on a Redding network can be formalized through an R�1 ar Mt?U
process. By creating a middCe cnile link to a data center in 5acramento,any servi�e provider with
a presence in that da#a center could deliver services into Redding.
Internet Service Providers—
• Shasta Beam—https://shastabeam.com/
• OMSoft—https;jlomsoft.com
• Fybercc�m—https:/1www.fybercom.net/
+ qwiknet—htt�:j/qwk.netl
• Race G�mmunications—https.//www.race.comJ
Broadband Master Plan—Report to Redding Gity Gauncil—Prepared k�y EntryPoint Netwo�ks Page � 21
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Construction � Engineering Partners
it is important to get competent partners for engineering and canstruetion and to contair�costs
through a competitive bidding process.There is a sufficient number of skilled construction firms
that service Northern Galifornia to get competitive bids fc�r work in Redcling. Prevailing Wa�e
t{�����?+t�zi3('Sr i€3h������i����j`�is{�{' �'�����r1it �#t��{�(r�r��s:: . . . . . . .
f$,��r� g�G{ �����������tt�{�t4,�'�,�?����}���,}f�f£�k: �egufations in Gahfarnia will increase labor costs for this pro�ect in compar�son to cEties in states
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����}�����t������� �;���n��}(} r}u�, ,r`�t��`� �t�������` Profes�sional En ineerir� is an�im o�-tant cc�m� oner�t�ofi ood� ro'ect�desi n�:� There��are several�
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F1s1��t}�I}��t� r#{tr?t����>iltf„�3�i!{�t7ftt�ts�1� �t4t��kr�i . . . �. � . .
�3 , ��g�y� � r���tt � ��s���,���'��5���`t}��'{������%���n �the Redd�n CEt Council decides to o�forward an�d��m lem�ent one or more ctf the� r�a ects urtder�
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r' t } ����t'���„��;�j���' ��������,'������,�����,j,�# cc�ns�derat�on,t�ur recommen�dation is�that p�o�ect leaders�carefully consider a mix of new�
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''��`���,��s� � or the ft�llawin projects�re�evaluated belaw:�
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������� � ` � � �� ����� REU ha�s#undin #o connect i#s
�t�t � � ������ ' �� g ' electric�l grid for r�al�-time control and management�af its�
�`� ' . .
��„� � 1 � infra�tt-ucCure.T�te ciky�as a�oppc�r`�unity�o�lever�g��Fre w�rf�al��ac�y baing dor�e 6y€�f�l�and
`� �'4,��i��`����� increase the fiber coun�of th�I�EU deployment and�tF�en alkocate fhe surp�as fEl�r�f�r use��by�h��
�
, 4 �r`'{�r�}`ss �,r if}}rsr Gity of Redding.
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3��t�rt 4 � � �� �'������j �tEtJ lans to lace a fiber o ti��cabt�an th� ower o[�s alon a 9_�-mite le tror��}�e Rec�cti�
����� �#��r{�t �- �, �
����� � `���r � ������>�� Powec��Plantto tl�e Oregon Substation. By increasing tFte fiber�count from 96-Count�to 288-Gount;
� �;�t �s, � � a � �
,4a� ��j�� �`�, r' r� ��}��} �the city�can establish the beginnEng leg of a fiber bacicEaone that car�be used�for a city I-NET
��� ��'� ����°; ��, �� �'� deptoyment in�� Che dt�wnto�nrt�area�or eon�ectior�s to re�id�e�tial rreigt�i��or�oods.��everagirtg
���� ° � � � ,����=d�� �,�'� �the REl!project by sirrrply increasing the fiber�cour�t wc�ulcC ereate significant valu�at a fra�tion of�
the cost af doing this independent(y.
The fallawing is a breakdown af projected materials casts for REU Phase 1:
REU Baci<bone Phase 'I (Pc�wer Plant tc�Oregon Substati�r�)
Estimated Totai Miles=9.5 Miles
Estimated Total Feet=5Q,160 feet
Cost per F�ot
Fiber Count Mileage Feet REU Ctast
of Mat�rials:
96 Count Fiber $6.6& 9.5 Miles 50,160 feet $335,068;84
144 Gount Fiber $7,79 9,5 Miles 50,160 feet $390,746.40
288 Gount Fiber $8.59 9.5 Miles 5t1,16t7 feet $430,874,40
City of'Reddir�g Cnst ' $1.�1 9.5 Miles 50,160<fieet $95,8�5.6(l
Broadband Master Plan—Report to Redding Gity Gouncil—Peepared k�y EntryPoint Netwo�-ks Page � 22
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The cast difference(�etween REU's needs and exeess fiber capacity far the first leg of the REU
Deployment is$95,805.60.This cost difference would be borne by the City af Redding. L�bor is
nat included in this calculation because the labor cost for 96 Count is essentially the same as the
labor cost far a 288 Gaunt bundle.
REU is considering doing a partial ring ta connect its most ccitical assets. Best practice woulcl be
for REU to create a full ring to provide the resiliency a divergent path provides. If REU does;a
partiai ring,a fiber cut would take down the network,
Cc�st per Fc�ot
Fibec Count Mileage �eet REll�c�st'
' raf Materfafs'
96 Cc�t�r�t�iber $5.68 25 Miles 136,QUO feet $908,480
�8�Count��b�r $8.59 26 Miles 136,aU0 feet $1,168,240
"�ity of Redding Cas� $1.91 26 Miles 136,0(�0 feet $259,760
The map below illustr�tes a fu(I ring connecting REU assets at a distance just under 26 Miles.
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Broadband Master Plan—Report to Redding Gity Gouncil—Peepared k�y EntryPoint Netwo�-ks Page � 23
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��1��!$�9�9C)tl r
The City of Redding is currently paying incumbent c�perators to connect city buildings and assets;
including REU infrastructure.One consideration is whether the city wauld benefit by replaci�g
some or all of its autsourced internet connections with fiber that is owned ar�d oper�ted by the
�ity of Redding.
Redding I-Net
The City of Redding pravided the following current monthly and annual casts far braadband
con nectivity:
VEt�1t}C?R SERVICE MONTHLY COST
CharterfSpectrum ISP $1,139:0�
CharterjSpectrum Cannecticins �7,160
AT8cT ASE $5,613:28
AT&T CSP $1,587.12
Monthiy Spend Total $15,499.0(�
Rnntaal Spend Total $185,991.0(7
10 Year Spend Total $1,859;916:U0
The Table below summarizes p�c��ections c�f the cost ta build�ut the different cornponents of the
existing GOR leasetl�tanrt�cticans with C{31�c�w�ed€iber c�ptic<cab[e.The cost prajecti�ns in this
table are laased an an assumpfiion that REU bullds a fu[1 ring and these c�annect€ons are coming
off of that ring.
The total cost projectian t�r�pl�c�the 1NET,AT�T`SwitcF�ed Ethernet and ftEU connectians is
$1,973,332.This gives CC?R the a�ility to re�rl��e existing c�annectians that are asymmetrica!and
range from 2 Mbps—25t1 Mbps with c€inn�ctions that ar�symmetrical at 1,000 Mbps over a 1�—
12-year period without increas'rng the annual cost ta�he city. C�nce the capital investrr�ent is paicl
off,the only cost going forward would be a nominal rtetwork o�t�ratiar�s cost. It is not
recommended that GOR replace the wireless conne�t�orrs afi this time.
In additic�n to the value in lawer`rng costs icang-ter�arad increasing speed a�c[ccantr�l cauer the
infrastructure,a city I-Net would further allow the Gity of Redding to l�uild out ifs network a�d
establish access or network aggregation pc�ints throughaut the City;if the Gity decides ta pursue
a full city-wide network deployment.Tl�e follovying table illustrates the expected cost tc�replace
each of the componerits of existing leased�nf�astructure:
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Overhead 70°l� 70°la 70°l� 70°la
Underground 30°l 30°l0 3C�1� 30°la
Overhead cast per faot $12.00 $12.00 $12.00 $12.OQ
und���rou�,d cost perfoot $40.0� $�a.00 �40.00 ��o.aa
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Jnner Ring-Underground $517,152 $217,740 $425;892 �2,160;784
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Broadband Master Plan—Report to Redding Gity Cauncil—Prepared by EntryPaint Netwacks Page �24
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Other Anchor Institutions
As part of this analysis; under the directian af City staff, meetings were�reld wit�r I.T: leaders
#rom the Schoot[3istrict, Hospitals,5hasta Courtty,Chamber�f Commerce,local business leaders
and representatives fram ather anchnr institutions to learn rrr4re about their existing broadband
needs,satisfactian with existing solutians and ta gauge their ievel of support for a possible
Redding Fiber Network;The support frorrr these groups far a Redding Fibee network was positive:
Each group explained their needs and participated ir�a presentation af�rc�ject gcrals arsd t�e
madels that are being considered. Fo1Cow-ap meetings were he}d with hospitals,SGt�E and Shasta
Union High Schoo(District.
P���� � -f�r��°��r�� �. �:��y-V�id� Fib�r��a��� P�� ���
irt 2017,the�ity ofi Ret�cling started the process of considering a potential dawnt�wn Redding
Internet Utility{Pilat}.A whitepaper was prepared which stated that"the City of Redding is
considering a propos�l�o research,develap,and patentially impiement a new fiber Internet
utility service:This initial service would be offered in the downtown area af Redding and serve as
a pilot phase for laoth residential and commercial customers:"
This re�errt adds to th�t initi�l whitepaper and€he work dane by the GlC at California State
University,ChicQ k�y providing a prt�jection for totaE casts and per premise casts,a high-level
network desig�,'a fir�ancial pro=ft�rrna and details about equipment options that ar�available to
the city for a Dt�v�rntawn piiot prc�ject.
R high-level netwc�rk desigr�w�s done fs�r th�dc�wnt�wn area and the Garden Tr�ct
neighborhoad in ord�r tc�build a cost madei for tf�at praject.The Biarri Net4vorksFiberQptic
Network Design Toals were used tc�create the de�i�n and calculate materials costs for these
designs.
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The netwarkdesign extended beyond the downtown area.However,the focus was on 644
premises in the downtown area.This design is not intended to specify the location of a pilot
project, Rather,the design simpiy provides information n�eded for cost mc�deling: Given the
exist`rng infrastructure downtown;any work dc�ne in the Downtown area wc�ufd likely be 10�/0
aerial with the exceptian of the area that is currently under construction in the Redding
Dc�wntawn Specific Praject where conduit is being instalEed to service buildings in the Market
Broadband Master Plan—Report to Redding City Gouncil—Prepared by EntryPoint Netwacks Page ( 25
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Street area.The assumptians for this cast modeling include a 25-year finar�ce term at a�l
interest rate. This modeC also assumes that construction is financed using 81 interest for an
average period of 6 manths. This pricing'rn this mode!also assumes a fuN city-wide
implementation and the projected cost in each scenario is an average based on the variables in
that scenario(percentage of aeria(vs undergraund and take-ratie).There is a Cine item below for
Hut'sJ�abinets out in the field.This line item includes the cost of instailation for HVAG and
electricity.The[ine item for Electronics includes the electrc�nics in the cer�tral of#ice;aggregation
locatians in thefield,and at the prerrrise. Market conditions may have a rt-�eaningful difference
on these projections for both materials and iabar,
Monthly Ir�frastruct�re Cast Modeled From 64� Prerr�ises
The first'illustration of Infrastructure�apital Costs;per premise assumes a 60°la take-rate and
a prz�ject that is 1t7�%w aerial,We can adjust"these variables on a r�eighborhood by neighborhood
Eaasis as needed.
Costs +�t 60°lo T,�ke R�te
100�a Aerial
Description Common Drop Total
Labor-Hours 5:28 2:11 7s39
Labor- E�b�lar5 $625.OQ $150.Od $775.00
Equipr�tenC $1$5.36 $28.63 $213.98
Ma�erials $282.91 $93>64 $376:55
Sup��ies $93.27 $5;63 $98:90
Rest�ration $4$.10 $1:76 $49;86
Hut/Cabinet �1(i$.07 $5:90 $113;97
Feeder Fib�r' $��.C?2, $C}.99 $37:02
Engineering $37.?t� $1:03 $38.13
Professional Services . $148.42 $25.16 $163.58
Electronics $166.67 $350.d0 $516:67
Subscriber Acquisitivn $0.0(� $1a�3.QQ $100,�d
Total $1,736':28 $7�.85 $2,483.64
Monthly Infrastructur���e $13.78
The secand i(lustration af Infrastructure Capital Costs per prernise�ssumes a 6(7°lo take-rate and
a project that is 100°lo underground.We can adjast t�es�uariabies an a neighbarhood by
neighborhood basis as needed,
Co�ts at 60%Talce Rate
1oo�O undecground
Description Gommon Drop Total
Labor- Hours 12.5 5.00 17:50
Labor- Dollars $2,250,00 $300.QQ $1;55Q.n0
Equipment $37Q,72 $57,25 $427.97
Materials $565:82 $287.28 $753.10
Supplies $93.27 $5.63 �98,90
Restoration $48.10 $2.76 $49.8F
HuttGabinet $108.07 $5.90 $113.97
Feeder Fiber $36.02 $0.99 $37.01
Engineering $37.10 $1.�3 $38.13
Professional Services $148,42 $15.16 $263.58
ECectronics $166:67 $350:00 $516.67
Subscriber Acquisition $0:00 $1dC7.00 $10d.f}0
Total $2;636.67 $1,030A0 $3,$49.17
Monthly Infrastructure Fes $21:35
6roadband Master Plan-Report to Redding Gity Cauncil-Prepared by EntryPaint Netwarks Page � 26
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The third illustration of Infrastructure"�apita(Costs per premise assumes a 6Ul take-rate and
a project that is a mix of 40%a aeria!and 6Ul underground.We can adjust these variabl�s on a
neighborhood by neighborhood basis as needed.
Lo5t5 �t 60°lo Talce R�te
40°�Aeriai!60�o Underground
Description Common Drop Total
Labor-Hours 10.d0 4.00 24.d0
Labor-Dollars $1,Od0:OQ $240:t76 $1,24t1:{�0
Equipment $296:57 $45:8d $342;37
Materials $45265 $149:&2 $602:48
Supplies $9327 $5.63 $98:90
Restora��or� $48:14 $1.76 �49:8�
Hut/Cabinet' $108:07 $5:90 $113.97
Feeder Fiber'" $36:02 $Q:99 $37.d1
Engir�eering $37:20 $2:d3 $38.13
Prafessional Services $148.42 $15.16 $263,5&
Electronics $166:67 $350:OQ $516.67
Subscriber Aequisition $O.QO $100.Q0 $10Q.00
7ota1 $2;3$6.8� $916.09 $3;8fl2:95
Nionthly In#rastr�u�iure Fee $1$:32
The analysis belc�w pravides details to assist city leaders in prt�periy evaluating a potential Gity-
wide Redding Fiber network,including the ec�sts, requirements,aptianal business models;and
risks invalved.
High Level Networl<Desigrr
A high=level network desigrt fc�r the Garden Traet neighborhoad was deve{oped in order fo
produce a cast model#c�r that nei�hborhocad and a mode(that can be used to extrapolate to
other areas ofthe city.The focus was e�n 155 premises i�fhe Gardec�Tract neigh�arhoad.The
Biarri Networks Fiber t�ptic Network Design Tool was used to create�he desjgn and caleulate
materials costs for this design.
Garden Tract— High Level Network�esi[�t�
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Broadband Master Plan—Report to Redding Gity Gouncil—Peepared k�y EntryPoint Netwo�-ks Page � 27
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To model the cost structure of a full Gity-Wide Deploymentr it is irnportant to separate the mair�
cost c�tegories far deploying and aperating broadband netwarks to c�ptimize the costs in e�ch of
the categories:
� lnfrastructure Gapital Gosts (Financed over 2(}-25 years}
� Network Maintenance&Operations
� Services
Infrastructure Capital Crasts- City-Wide Deployment
The cost modeling that fal►ows assumes the city has established a fiber optic backbone by adding
fiber�c�unt tc��Fi�planned REU Fiber-ta-the-Substation prgject and repiaced leased corrnections
ft�r fF��city i-Net wit�a City controlled fiber aptic network.
Labor Costs
After analyzing Prevarling wage requirements,the ex�ected (�abor Gc�sts were increased by 33l
for both the Common(Neighborhood Gonneetion}and Drop(Fiber ta the Home}.
M�rr�tl�ly lnfrastructure �ost
The fiest Nfustratit�n of Infrastruct�are Capital Gosts per premise assumes a 60°la take-�ate and a
project that is�.t3t71 underground.The data ir�the line items in this model came feom a
combination of the Biarri Netinriark Design tool;actua[bids for materials,and network buildout
experience.
Take-rate is a variable that is critic�f�o'project success because tl�e operational sustainability af a
project depends on crossing a c�rta�n take-rate thre�ho[d and take-rate has a meaningful impact
an the cost per premise.
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The following table illustrates the impact of take-rate on total cost per premise with a rate of
60°lo as ne�trai an impact:
Broadband Master Plan—Report to Redding Gity Gouncil—Peepared k�y EntryPoint Netwo�-ks Page � 28
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Why Tal�e-Rate is Impcartant
Take-Rate CastJSub 5ubscribers Differenee vs. 60°�Take-Rate
5;(�t7�fo $34,915.�0 2»250 - ����.,€��a`�.�3�)
10:00°fo $17,970.00 4,300 $16,945:00 (���,1.?�.c���
15:00°fa $12,321.67 6,450 $5,648:33 ('��3,�t7�%.°C);
20:OO�a $9,497.50 8»600 $2,824.17 ��5,�r�a�.�;3�
25,00°/a $7;803.00 1d,75Q $1,694.5Q (��,��a�.43�
30;00°la $6,673:33 12,900 $1,129.67 ���,��'�.�.�}
35:OO�la $5;86�:43 15,(}50 $8d6:90 ;��",�}�,�.?�j
4Q�0°fu $5;261.25 17,2t70 $6Q5.18 (�1,��2.�J&�
4�.(}��a ' $4,790.56 19,35d $470:69 ���4�,3�)
50.00°fa $4,414.00 21,500 $376:56 ��;�t34.�3�
55.00°!0 $4,105.91 23,650 $3d8.09 (�i2:�f�,x�-)
60.00°/a $3,849.17 25,80(7 $256.74 $0.00
65.00�0 $3,631.92 27,950 $217.24 i '
70.Q0°lo $3,445.71 30,100 $186.21 '� .t �':';
75:OO�o $3,284.33 32;250 $161:38 £,{ ��>'�.
8Q.�0°l0 $3,143i13 34,40� $141.21 r?��?�
�3�.b0°la,: $�,�18.�3 36,550 $124.60 q;;..z
90.OQ°!o . �$2,907.�$ �. 38,70D �110.76 ���.,.���
95.00°/a � $2,8fl8,6� 40,850 $99�.09 '�.;.,,�r w:��
100.00�a '��� �� $2,71.9.5(� '� 43,Q00 $89.18� ��1 1. .:.��r
GeQgraphical Information Cerster Repor�
Estimates and projectians were nc�t correlated wi�h the work done by the Geographical
Information Genter at the Ur�iuer�ity of Californi�,Chico State because current projections
foeused an a per premise�csst.The GIG did nc�t�Srovide a per premise ec�st but provided an
estimated range for tot�l common depl�yment cost far�}�e fiber-optic r�etwork in the Downtown
Redding Pilot Project Area.An important finding frorr�th�GIG report emphasized the likelihoad
that project synergies and efficiencies could occur by leveragir�g e�isti�g city resourses and as a
result af the city doing the backbane project and the Pilc�t pr�a}��t in conjunctian.There would be
cumulative or compoanding positive effects from doir��al1 of the projects.
Full City-Wide Depl�yment Infrastructure Netwark Qperations
The fallowing Table summarizes the anticipated cost structure fcsr Netw4rk Maintenance&
Operatians.This schedule produces a monthly M&O fee for the Broadband Utility at$24,25 per
manth,The city would need to subsidize network operations until enough seale is established to
achieve sustainabifity.
Broadband Master Plan—Report to Redding Gity Gouncil—Peepared k�y EntryPoint Netwo�-ks Page � 29
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Networi<Management S�Dperatians Co�t Structure
The nurrtbers and categories in this model are derived from'many years of experience with actua[
casts for Braadband projects.Lab�r costs are madeled to reflect Galifarnia wages.
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costs/a�cruais/��s�r�es Sz�.�s ��z�,�so �7,so�,soo zoo,00�o
Power $1:41 $36;288 $435,452 5:80°fo
Go-Lo Fees $0:35 $9,072 $1t�8;863 1.45°l0
�abar $8.00 $206,465 $2;477,574 33.00°la
Office $0,58 $15,016 $180,187 2,4fl°lo
Vehicles $0,73 $18;77d $225,234 3.00°l0
Tt>C��S ' $0.21 $5,443 $65,318 0.87°l0
�quipment $1.18 $3(1,344 $364,128 4.85°l0
;Supplies $Q.12 $3,128 $37,539 0.50°la
Dig-line $0.19 $S;QOS $6�,Q62 Q.80°l0
Maintenance $1_18 $30;344 $364;128 4:85°l�
Call Center $0.36 $9,385 $112;617 1.50°l0
Network Operations Center(ManitoringJ $0:36 $9,385 $112;617 1.50°t'a
Equipment Refresh costs(Reserves) $4.00 $103,232 $1,238,787 16.5Q°lo
't�ic�nses Fe�s(SaaS,Etc.} $2.00 $51,600 $619,2d0 8.25°l0
ReYlt�ls''' $1.18 $30,3�#4 $364,1Z8 4.85°fo
Business Insurance $0.12 $3,128 $37,539 Q.50°la
Bad Debt $0:45 $11,887 $142,648 1,9Q°la
Equipment Replacement $0:02 $526 $7,508 Q.1Q°l�
Taxes and Fees�Property} $0:00 $0 $d 4.00°l�
Interest $0:24 $6,257 $75;t178 1.0(�°l0
Reserves �1.55 $39;916 $478,998 6.38%
Total $24.�5 $525,634 $7,507,6t}7 100.Q0°lo
Based upon 25,800 Network Subsc�'ik��rs
Staffing Modeling f�r Intern�l N�twc�r�C dperatic�ns
The following Table models the cast structure for th�j�ositions rt��t���l for the City of Redd'€ng to
aperate the network with city emp(oyees:The model prouic��s suffiicient resources for netvrrc,rk
managernent and operations.The model does nat include resources for construction,The cost
structure improves with ecanomies of s�aie{stsbscriber growth},The city wi(I need to subsidize
this department through the first 2 years af operatior�s and that invest�ent will be paid back by
operational suepluses as subscribers grow from 12,0070-25,�CI0,The work that will be done by
the Network Operations Department includes netw�rk monitaring; netwark management,
outside plant repairs,&new customer installations: Losses in Years 1-2 can be mitigated by
lev�raging existing Cityresources.
Fully fully Fu11y
Position Compensated Gc�mpensated �c�mpensated
FIou�1y Rate Monthly Gost Annual Cvst
Manager $&7 $15,480 $180;96{3
I.T.Nianager $44 $7,6Z7 $91,520
I.T.Technician $33 $5,720 $68,6�0
Outside Manager $38 $6,587 $79,Q40
Uutside Plant Tech $27 $4,680 $56;160
Broadband Master Plan-Report to Redding Gity Gouncil-Peepared k�y EntryPoint Netwo�-ks Page � 30
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Subscriptians & 5taffing Projectcons
Subscribers Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
NewSubscribers 1,2QQ 8,200 8,2t30 8,200 - -
Subscriber at Ye�r End 1�2Q0 9,400 17,600 25;$00 Z5;80(7 25,8t30
Labor Allocation $8.q0 $8.00 $8:00 $8.€}Q $8:00 $8:C10
Cash Flaw from �abor $57,618.00 $508,953:00 $1,296,405.OU $2,083;851.04 $2,477;574.00 $2,477,574.tJ0
Staffing Projections Year�. Year� ltear 3 Year 4 Year 5 Year 6
Sr Director 0 0 1 1 1 2
IT Manager 1 1 2 2 2 2
IT Technician Q.5 2 4 8 8 8
Outside Plant Manager 1 1 2 2 2 2
Outside Plant Laborer Q:S 4 8 12 12 12
Position Year 1 Ye�r 2 Ye�r 3 Year 4 Year 5 Year 6
5r Director $OAO , $0.00 $18(},96Q.00 �180,960.00 $180;96(1.Ut7 $180,96(}.�t3
IT Manager $91,520.Oa $��.,520:00 $1,83,C740.00 $183;040.00 $183,a4(}.0(} $183,O�O,aO
ITTechnician $34,320.00 $137,2$0.00 $�74,560.00 $549,120:(�0 $549;120:(lt3 $549;120:t}0
Outside Plant Manager $79,040A0 $7g,{7�C7.�Q $158,08C}.t�0 �158,080.00 $158;U8€}:€l0 $158,C?�0.00
Outside Plant Laborer $28,080.00 $224,640.0(} $449,2��3,t}� $67��92{}.00 $673,92Q.Q0 $673,920,Ot}
-ro�at Sz3z,9�o.0o 55��,�.so.00 $s,z��,��o.ao 5z,�as,�zo.00 5�;,7as,�2o,�0 ��.,�a�,�z�.�o
Net �$s�s,3�z.aa} c$z�,s2�..o0} �st�,ass.00 ����.�ss.o� 5���,���.00 �a��,���.�o
Projec� Pro-Forma
�inancial Pro-F�rma �f Full Project Cr��ts - 4 Year Build- Ethernet Arcl�itect�re
Projected Inner Ring Casts to Redding* $259,87(}.71
Prajected Costs ta get ta City Assets $1,973,332.a(}
Prajected Cost Per Premise (Common and Drop) ** $3,435.07
Estimated Subscribers 25,8(3t3
Total Cost(Comman& Drop} (Incfudes Short Ter�m Interest} $88,624,861.73
Prafiessional Services $300,OOQ.00
Total Projected Project Costs (4-year k�uild) $91,158,06�,44
*Assumes Redding only pays additiona/cast ta increase fiber count to 288:
**Assumes a1140%aeria/,60%underground,60/take rate&short-term interest rate af 81
and long-term bond rate of 4%far 25 yea�s.
Broadband Master Plan—Report to Redding Gity Gouncil—Peepared k�y EntryPoint Netwo�-ks Page � 31
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Projec�ed Subscrip�ian Costs
Projected Resid�ntial Services Monthiy Costs 100°Ia Under rp ound 6(�f40 Split 100°l�A�ria�
Infrastructure $21.35 $18:32 $13:78
Maintenance and Operations $24.25 $24.25 $24.25
ISP Service(Dedicated 1 GB SymmetricalJ 9.99 9;99 9.99
Monthly Total $55.59 $52,56 $48:(12
Projected Business Ser�ri�es Monthly�c�sts 100%� Und�rt�round 60140 Sp[it 100°lo Aerial
Infrastructure $21.35 $18.32 $13.78
Maintenance and t7p�tatiar►s $24,25 $24,25 �24.25
ISP Service (Dedicated,l GB Symmetrical} 49:99 49:�9 49.99
Monthly Total $95.59 $92.56 $88.�2
The Residential$9.99 monthly 1SP fee listed���ve is based upc�n currenf pricing from the/ist of lSPs interested in
praviding services in Redding.
The differences between Residential and 8crsiness pricing are based or�the need for many businesses to have 24x7
custamer support.
Prajected C�pital ��cpe�di�ures �, Funding
Timeline Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Total
Capital[asts
Inner-Ring(Backbone) $86,623.57 $86,623:5? $85,623:57 $259;870:?2
CityAssets $657,777:33 $657,?77:33 $657,777,33 $1,973;332.40
Subscriber Drops $1;099,312:80 $7,511,970:80 $7,511,970:80 �7,511,97t1.St1 $23,635,225c20
Subscriber Cammon $2;864,232.00 $19,572;252:00 $19,572,252.00 $i�,572,252.Dfl $61,580,988:flfl
Interest Reserve(Drops} $158,541:79 $1;400,452;54 $1;b$3,368:91 $1,083,368:91 $3,725,732:11
Interest Reserve(Backbone) $29,776.04 $36,705.92 $29,776.04 $0:00 96 257:99
Total $4,896,263.53 $29,265,782.12 $28,941,76&.65 $2&,167,591.71 $91;271,406;fl2
Shorf Term Financi�q{Bui(d Out)
New Backbone $744,400:90 $744,400:90 $744,400:90 $O:OQ $2,233,2Q2.71
Retired -$1,Sd2,338:00 -$1,415,714:00
Total $744,400:9� $1,488,SOS:$1 $744,400:90 $0:00
New Drops $3,963,544.80 $27,084,222:80 $27,084,222:SQ $27,084,222.80 $85,216,213,2tt
Total $3;463,544:8Q $31,047,767.60 $27,084,222.Sd $27,084,222.&0
LongTerm Funding
New Backbone $1,555,283.77 $774,136.94 $2,329,46t3.70
New Build $32;606,7fi1:89 $28,167,591.71 $28,167,591.71 $8$,941,945,31
Total Backbone $1,555,283.77 $2,329,460.70 $2,329,460.7� $2,329,#64,7fl
Total Build $3Z,6d6,761.89 $5�,774,353.60 $88,941,945:31 $88,941,945.31
Broadband Master Plan—Report to Redding Gity Gouncil—Peepared k�y EntryPoint Netwo�-ks Page � 32
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- Proje��ed Incame & Cash Flow
Timeline Year 1 Year 2 Year3 Year 4 Year 5 Year 6
Subscribers
New Subscribers 1;200 8;2dd 8,20D 8,200 - -
#vf Subscriber at year end 1,200 9;400 17,6Q0 25,800 25;80(7 25r8(7f�
Income 5tatement(Revenue)
Gity Services $31,dOQ.CI� $1�0,165.67 $131,166.57 $185,000.00 $186.UOQ.�O $186,0OO.OtI
Infrastructure Fees $133.,9�3.43 $1,165;394.27 $2,968,457.10 $4;771,519.93 $5;673,051:35 $5,673,051:35
Maintenance and Operations $574,600.QQ $2,542�300.00 $3,9Z8,500:00 $6;31R,700:OQ $7,St17,800;0(7 $7;Sfl7,$00�0€7
Total Revenue $337,531:43 $2,$07,860.94 $7�028;123.77 $11,272,219.93 $13,366,$51:35 $13,36b,851,35
Operatmq Costs(Expenses)
Maintenance and Operations =5134;653.52 -$92{�,118.72 -$3;029;659.20 -$4;869,896;64 $5;794,01536 -$5,79D;OT5:36
M&O Labor Difference ; -$175;342:00 -$2�3�a21,00 $50;485.�0 $338,731,00 $732,454:Q0 $732,454,dd
Professional Services -$75;dD0:d0 -$75,000.00 -$75;OOd.00 -$75,000.00
(Consulting;Legal,-EngineeringJ
Interest Reserve -$188,317.83 -$1,437;158:42 -$1,113;144:95 -$1,083,358:91 $O.dO $0.00
Debt Service Reserve -$131,931'.43 ; -$1,165,33d.27 -$901,531:42 -$9C}1,532:42 $0:0� $0:4Q
M&0 Reserve $39,���.4$ $272,9�1.28 -$898,840.80 -$1,444,��3:3b -$1;717,784:64 -$1,717,784:64
Total Expenses -$745,191.25 ,$�,�34,173.69 -$5,967,691.36 -$8;a�5,&59.33 -$6,775,346.Q0 -$6,775,346.OQ
Net(Revenue vs Expenses) $407;659.83 -$1,086r312.75 �1,�760;43Z.40 $3,236,350.61 $5,591,5(}5:35 $6,591,SQ5,35
Loan Payment
Backbone $94,S�f,77 $149,113:35 $149,113:35 $144,113:35
Build Out $2,0&7,�22.83 '', $3;890,285:65 $5,693,348:49 $5,693,348;49
Total Loan Payments $2,��6,779.60 �4,039,399.01 $5,842,461.85 $5,842,461.&5
Net -$407;659.83 -$1,086,312.75 -$�,126,347.19 -�803,048.41 $749,ti'�3:51 $749,Q'�3;51
Cash Flow
Capital Expenditures =$4,707,945.70 =$27,828,623.'1b -$�7,828;523.7t� , $�7;084,222�80 $0:0� $0:£�t7
Money Borrowed $4,707,945.70 $27,&28,623.70 $29,454,09�.95 $2$;197,�67.75 $1;083,368:51 $0:04
Net $0.00 $�:00 $1,525,47�.25 $1,21�,1#4.95 $1>083,368:91 $0:40
Revenue $337;531.43 $2,807;$6Q.94 $7;02$;123:77 $11,272,219:93 $13,366,851:35 $13,366;$51,35
Cash Expenses -$384;99352 -$1,018;639.72 -$3;054,174.20 -$4,�t36,165.6A -$5,(157,561:36 -$5,057;561.36
LoarrPayments -$2,186,779:60 $4,t3��,33�.C31" -$5;842,�61:85 -$5,842,451:85
Net Cash -$47;462.09 $1,789,221.22 $1,787,169.97 $�,fs26,�i55.28 $2,455,828.15 $2,466,828.15
Accrued InteresY -$188,317:83 -$1,�37;158.42 -$5,113;144.95 -$1,083,368;91 $O:OQ $Q:QQ
Unrestricted Cash -$219,342:00 $350,845.67 $1,612,274.00 $1;393,455:45 $1;832,412:42 $749,043.51
Reserve
Debt Service $131,931.43 $1,165,394.27 $901;531.42 $901,531.42 $�:OQ $t�l��
Maintenance and Operations $39;948.48 $272;981.28 $89$,840.8t} $1,444,8Q3.36 $1;717,784:64 $1,717,784.64
Total Reserve $171,879.91 $1,438,375.55 $1,800,372.22 $2,345,334.75 $2,717,784.64 $1,717,784.64
Tata)Gasfi -$47,462.09 $1,?89.221.22 �3.412;645.22 $3,739,8(ft1.23 $3,550,19?.U6 $2.466,828.15
Broadband Master Plan—Report to Redding Gity Gouncil—Peepared k�y EntryPoint Netwo�-ks Page � 33
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Because project feasibility is uCtimately a#unctic�n of getting people to s€gn up ar�d remain loyal�c�
the netwcark,there needs to be a value proposition that mc�bilizes custcamers tc�subscribe. F�ar
that to happen,subsccibers rieed a compelling solution and the netwe�rk needs tcr create cash
flow predictability and bankable contracts to attract financing for the project. NetEquity in San
Francisco visualizes these dependencies in this way:
�letEquity Stack
�.�_�� �.� - - -
Pec�pE� ... are hungry far Services
_ � . .
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f Services are hungry for Infrastructure
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'``` � � �nfra�tructure is hur�gry far Ca�ital
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Capital is�t�r�gry for Cash Flow Predictability
��
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Cash Flow Predictability is hune�ry for Bankable Contraets
- ��_ �_ _w_� �._ ..
Bankable Contacts result from Align�c� Incentives
__w__ _.
Aligned Incentives requires �`rust
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Trust �omes from Navir�g the Same Vision
lsfandiyar(Asfi)Shaheen develapec(the NetEqufty:Stack abave.Ntr�Shaheen is a G(obal 8roadbani�
/nfrastructure Thoughtleader based in San Francisco. He is working to pravide fiber optic connectivity ta
unconnected countries around the world:
����I �:�r�s������ic�r��
The Redding�ity Attorney is preparing a separate anaCysis describing the Gty's legal authority to
build,awn,and operate broadband infrastructure as we(f as other legal and risk-related
considerations for organizing a braadband utility.
Broadband Master Plan-Report to Redding Gity Gouncil-Peepared k�y EntryPoint Netwo�-ks Page � 34
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The following is an analysis of the main risk factors facing the City of Reddirsg shc�u[d eity leaders
decide to pursue a fiber-to-the-premise deployment:A portion ofithese risks exist for tFre REU
and I-NET projects,but a city-wide project wc�uld be much more compiex�n design,errgineering
and canstruction and have the added complexity of education and carnmunicatior�with patential
subscribers. Hawever,successfully executing on the first 2 prc�posed prc�jects would greatly
reduce the risk of subsequent fiber-to-the-premise projects. Eight�otenta) Risk�actars are
analyzed:
1.Sub�criber Churrt Risk
�.Take-Rate Risk
/�; /� 3. Project Execution#�isk
Pd tel�tc�� 1�l,�K 4. Equipment and Techr�ology Risk
�C 5.Community Engag�ment Risk
I �G't(,�r�'� 6,Cost Modeling Risk
7..Business Model Risk
Likelihood �������������15�
�i�7,C�aCt Subscri�er Chu�'n
���fga���� Subscriber Churn isthe risk that customers sign up and then don't remain subscribers ta the
network.
Likelihoad:Today customers are prirrtari(y driven t�y cost,speed and c�stomer service.Churn is
possible and is a consequence�sf the custamers pursuing an optian to get better value from an
alternative solution.The likel'r�ac�cl of churn is hi�h if a new markef solution simply eeplicates the
incumbent madel.The Iikelil�t�ocl crf churn goes dc�wn under a Business Made1 where 1)tl�e
cus#omer is financially responsi�le ft�r the drea�i to their property and 2j where the value
proposition is strong enaugh to make t'he customer vc�iurttarily committed ta the network:
Impact:The impact af churn on the network is pot�ntiaily catastr'c�phie if it reaches a level wt�ere
the capital and aperational cost of the abandoned ir�frastr�rct€rre cannat reasonalaly be shared by
remaining suhascribers.
Mitigation:Ghurn can be mitigated by implementing a busir�ess model that makes customers
voluntarily committed to the network and by assigning financial responsibility to customers for
their lateral connectian.
Tal<e-Rate Risk
Take-rate risk is the risk that the City builds out the netwc�rk ant!ends up with a take-rate that is
lower than expected:
Likelihaod;Take-rate risk is possible and is a function crf the value prapositian of t�re network
and how well that value proposition gets cc�mmunicated and managed before cor�structian
starts.Nigh take-rates lead to lower network costs foc subseribers.This creates a virtuous cycle
where lower costs lead to higher take rates.The reverse is also true.
Impact:The warst-case scenaria is one where lower take rates lead to highee costs and churn
which create a death spira(that negatively c4mp€aunds until the network'rs nat sustair�able:
Broadband Master Plan—Report to Redding Gity Cauneil—Prepared by EntryPaint Netwarks Page � 35
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Mitigation. Manage demand aggregat'ran before construction I�egins and give cortsumers a value
praposition that makes them voluntarily committed tc�the network infrastructure,
Proiect Execution
Project Executiort includes strategY, planningx project management and fulfiNment of the project
plan and c�perational executian,
I.ikelihood: Project executic�n failure is possible and is a function af the effectiveness c�f project
planning, management,controls and execution.
Impact:l'he severity of impact is in proportion ta the effectiveness of project management and
executicin.A war�t-case scenario is ane where project executian affects thevalue propasition;
�irhich in turn affects take-rate and churn;
Mitigation: Hire or p�rtner with skilled praject managers and key strategic partners.Create
alignment arriong key team members an the project�(an and operatior�al pCan. C�evelop project
controls that are monitored and reparted to senior leadership an a monthly basis.
Equiprner�t�Technolo��y Risl<
Equipment&TecF��tt�(agy Risk includes both saftware and hardware so(utions and is the risk that
equ`rpment fiailui`�rates are higherthan expected, major softwa�-e bugs are unresolved,
operatianal reliak�ility is lawer th�r�expected, and/or that the technoCogy lifecycle leads to faster
obsolescence t�an is expectec�.;Fc�r a network the size of Redding,an additianal risk:is scalability
risk. Middle Mile risk cc��erecl in the Middle fttlile pricing sectian.
Likelihood:Safutions-with shc�rt d�ployment histc�r�i�s,unreliable references;unclear quality
control and test pracedures,weak professional te�rns;and poorly architected scaiability
abstractions present insreas�ci;ec�uipment and tec�nology risk.
Impact:The impact of this risk categc�ry is r�c�derate because it is possible to vet both software
and hardware systems to assess this risk,The base tec�tr�ology ofi the network will be fiber optic
cable and that has sufficien#history to present a mintsr risk to t�te�art�ject. Remaining risks
inelude electronics and software systems.
Mitigation: Implementthocough due di1�g��ce prc�cesses with trained professionals to scrutinize
references,arcfiitecture,software abstractions,quaCity control systems and the prof�ssianal
histories af vendors being considered.
Community Engagement
�ammunity Engagement is the marketing,educatian and corrrmunicatian processes and
strategies used to inform residents and businesses about the valae propositiorr offered bythe
network.
�ikelihaod:GommunityEngagement risk is possible but nonetheless a risk that car�be managed
and monitored. Poor planning,managemenf and executic�n increases the level af risk.
Community engagement can be handl�d by i�ternal city staff, but risk increases ifstaff inember
resnurces are inadequate far a project of this size.There is an abundant supply of marketing
professiona(s avai(able ta assist with comrriunity engagement processes:
Impact:Cammunity engagerrtent is a'key driver of projeet success due to the relat'ronship
between com'munity engagement and take-rate.
Braadband Master Plan—Report ta Redding Gity Gauncil—Peepared k�y EntryPoint Netwo�-ks Page � 36
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Mitigation. Leverage tC�e skills of competerit marlceting professionals and pri�vide sufficient
resources to make it easy for every resident to learn the k�asic v�lue prc�position for the network
in comparisan to alternatives through a variety af marketing;educatian and communication
strategies.
Cost Modelin Risl<
Cost Modeling Risk is the risk that cost madeling significantly'underestimates actuai tlesign;
ccrnstruction and/or operatianal cc�sts;
Likelihood.There is enough'rndustry data to reasonabfy validate cost estimates.
Imp�c€.Gost c�uerruns can have a moderate to disastrous impact an network sustainability.
1111itigation�Validate financial assumptians against industry assumptions;market conditiar�s,and
account for local ecanamic variables.
B�asiness Model Risl<
TF�e Business Model deplayed has a significant influence on praject success and inckudes financiai
anc�pc�{itic�l risks to the y�rcrj�ef.An impartant companent af Business Model planning is to
define the optim�l rc�fe for the Gity,of Redding in building and operating a fiber aptic network:
Likelihoad:Risks related to the business model increase when the made[forces participation,
simply repiicat�s the incumbent madel or establishes a role for the Gity of Reddir�g that is not
supparted by resid�nt�,Th�raie of the City prirt�arily has to do with whether the City prouides
ISP services and whe��ter the Gity is the network operatar.
Impact:The impact of poor B�5ine5s Model planr�ing ar strategy ranges from maderate to
catastrophic,depending uptan�he impact on key success s�easures like churn or tak�-rate,
Mitigation:The city can mitigate Bu�irtess�iode[risk v�rith a model that does not corr�pel
participation but fosters uoluntary commitment to th��etwork via the val�ae�rrapositian:The
risk of making participation mandatary is that this rer��tirement car�€�ister an organized politica)
movement opposing the network that would nnt e�tisY if the c�ption to part�cipate was volur�tary:
Rer�ulatory Rcsl<
Regulatory Risk is the cisk that State ar Federal regulations change during or after a project and
become a barrier to the city`s ability to o�erate its network.
Likelihoad: Regulatory risk negatively affecting a city in California fcom going forward with an
existing network implementation or pcecluding a city from operating an existing network is very
unlikely because trends at the state and federal level aver the past 3�mont�rs are toward
enabling and supporting municipal netwarks, lf current trends were to reverse, it is-likely thaf
existing networks would be grandfathered into prior regu{atory frameworks.
Impact:A state or federal prohibition for a municipal network,althaugh highly unlikely,would be
an existential problem. Hflwever,the underlying fib�r optic infrastructure w�uld stil{have
significantvalue to private operators—including wireless carriers.
Mitigation:The Redding City Attorney should prepare a separate analysis explaining the City's
Legal Authocity to build;own,and aperate broadbar�d'rnfcast�-ucture. Building and operating a
Broadband Master Plan—Report to Redding Gity Gouncil—Peepared k�y EntryPoint Netwo�-ks Page � 37
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successfuC network that is widely supported by subscribers is a strong defense against future
regulatory constraints:
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Media
Fiber Optic Cable is a far superior media in comparison to DSL and Goaxia)Gable,lt is superiar in
current�apacity,future capacity and in the ability to deliver symmetrical speeds:
E3�tsiness Madel
if COR decides ta pursue a Pilot projeci and j ar�city-widefiber to the premise project,the City
could be successful r�plicating the Ghattanoaga,TN model or an Open Access modeL City leaders
will need ta decide on the business model that pravides the best#it for the strategic objectives�f
the Gity.Open access will produce a 20%+month(y savings for residentia(and smaEl ta medium
sized busin�sses because trf increased competition between Internet Service Prov'rders.
Projects
1} Increase the Fiber Count for the REU Broadband Project#ar City of Redding ilse
The REU project tt�ccsnnect s�tbstatians with€iber optiics is an opportunity ta establ`rsh a rabust
fiber ring around the Ci#y c�f Redding�t a consi�lerably lower cast than a stand-alone pr�ject by
simply increasing the fiber count to�88. If Gity leaders plan to d4 any of the subsequent prajects,
this is a necessary first step.
2) Gity INET—Buiid Fiber Ctptic l��twork tc�Ct�nnect C[��t Asse#s
The City af Redding is currently paying incumbent oper�tors for leased cannecttons for city
buildings and assets,induding REU inf�astructure.Th�city can re���c�these Ceased connections
with fiber optic infrastructure which provides much great�r bandwidth,the abilityto pay off the
asset over a 12-year period by putting in the same$18f,U{3�it is eurrentCy paying annually;zhe
long-term value of this is significant-ev�r�if t�i��ity daes not do a Pilot ar City-wide project,
3j Pilot Area&City-wide Fiber Optic Network to Residents and Busir�esses
A Filot Area project would provide the city an oppc�rtunity to measure the level of interest and
support#or municipal infrastructure;learn from an actual deployment,and provide a live
demonstration af the so(ution the city decides is the best fit for its objectives,
To canfirm the feasibility of this project,the city shauld pursue available grant apportunities and
then begin aggregating demand through cammunify engagement.
For a city-wide project ta be feasible,a City aperated utility is sustainable around 10,04�
subscribers and as participafing neighborhaods achieve a 40l take-rate or higher to yield a cost
structure where subscribers both save maney and get significantly faster network speeds;8c�th
take-rate and total number of subscribers shau(d be cansideced for city-wide feasibility,
Broadband Master Plan—Report to Redding Gity Gouncil—Peepared k�y EntryPoint Netwo�-ks Page � 38
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Rlext Steps inclucfe tf�e foll�wing:
1. City Leaders should deliberate and decide whether or not to go forwtard wifh prt�jects
18c 2(REU Fiber Gount Expansion and the 1NET praject},
2. Begin project plannirsg far projects 1&2 if the City is going forward with these prajects,
3. Cr�ate RFP for Engineering a'nd Construction for Projec#s 18c 2 if the City is going
'forwa rd.
4. Apply for grants thaf may benefit a City of Redding netwark.
5. Collect better data on current internet pricing for small/medium size businesses city-
wide.
6; Decide whether to pursue the Pilat area project foliowing results fram grant application;
7W If gcsing forward�decide whether the Gty will go forward with a single ISP madel under
't�te Electric��1Jtil�ty c�r,�n(7pen Access model
8. Create art RFP for Engineering and Construction for Pilot Project if the City is going
forwari�. `
9. Begin Ccc��nmunity Engagement fc�r Pi{at and Gity-wide projects if going farward:
10. Decide on�ity�wicte project per�dir�g successful execution of Pilot area project:
11: Create an RFP for Engine�rwng and Gonstruetion far a City-wide project if the City is
gaing forward.
12: if the Gity�f Reddirtg en�s up daing a;C`r�y-wide�Sr�ject,there aresignificant adventages
for both momentum and��a��r trar�saction costs for moving at a rapid pace thraugh
construction:
Broadband Master Plan—Report to Redding Gity Gouncil—Peepared k�y EntryPoint Netwo�-ks Page � 39
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City of Re+dt��r�g
Master �rc��►�band Plan
Te��e�t�m��u���atiar�s Infrastructure
Draft Version March 2019
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City of Redding—Master Broadband Plan
Telecommunications Infrastructure
California State University, Chico %
Geographical Information Center
Elaborated by
Jason Schwenkler,Geographical Information Center(GIC�FJirectt�r
David Espinoza, GIC Broadband Special'ist{I.e�d author)
Courtney Farrell, GIC Project Manager
Susan Strachan, GIC Project�llanager
Tyler Boyle,Senior GI�Ar�alyst
Alice Patterson, Project A��l�rst
Cynthia Barit�ui�;�ilSAssistan��� '
Dan L�c+�r�,Assistant 111
Luke Scho��,�C�chnical Editor
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1. Contents................................................................................................................................................3
2. Executive Summary...............................................................................................................................5
3. Introduction..........................................................................................................................................6
3.1 Broadband Importance and Applications in Rural Northern California........................................8
3.2 Broadband Definition (Federal and State) and California Coverage Goal..................................10
3.3 Broadband Demand Drivers............................................... .......................................................12
4. Current Broadband Landscape ....................................... .......a: ,......................................................14
4.1 Broadband Services Availability(Served, Unserved a�tt1 Na S�rvice Areas)...............................14
4.1.1 Wireline and Fixed Wireless Service Availak�ility....... ........: ............................................15
4.1.2 Advertised Download Speed Availability by ISP.................... ..y........................................18
4.1.3 Measured Broadband Service and Dc��rnload Speed Availability..:. .................................31
4.2 Broadband Services Adoption .................... ......t... ..�.,..... .................. ......... . .....................32
4.3 Middle-Mile Service Availabilit�w;.:t::... . ..... . . ......:........ ....................... ......... ......................33
5. Broadband infrastructure Upgrade R�c�mrn�ridations. ......... .......................................................35
5.1 Middle-and Last-Mile Network Up�rade Opt��r�s.. ......... ..�.... ............................................35
5.1.1 Fiber-to-t�r�-Hot�'t�;(��TH) Netwc�r�Desi�rt"..:. ........ . .......: ............................................35
5.1.2 High-�ev�l Fiber-Optic�t�twork Co��A�sessment..... ....'...................................................41
6. Policy Recommendations to Suppc+rt Broadband E�cpansion .............................................................46
6.1 A�li�y I:ssu�����nd Con�i����tions......, .�..... .. ...........................................................................46
6.�,:�: Assess and t,r�iplemen�Smart City Ca��k�ilities...................................................................46
6.1.2 Ease for Broad�a�d Infrastr�cture Deployments...............................................................46
6.1.3 I�r�c�rity Areas for Br��i�dband 1r�frastructure Deployments ................................................46
6.1.4 Partrierships for Br�,�dband Infrastructure Projects ..........................................................47
6.1.5 Promote Brc�adbar�c��ervices Adoption to Foster Economic Development.......................47
6.2 Policies for Promot�ng�nd Improving Telecommunications Infrastructure ..............................47
6.2.1 Dig-Once Policy...................................................................................................................48
6.2.2 Develop Conduit Specifications ..........................................................................................48
6.2.3 Master Lease Agreement....................................................................................................48
6.2.4 Streamline Application Process and Permit Fees ...............................................................49
6.3 Sample Telecommunications Element for the City of Redding General Plan.............................49
7. Recommendations to Improve Broadband Service Adoption............................................................52
��
8. Conclusion...........................................................................................................................................53
9. Appendices..........................................................................................................................................54
9.1 Appendix A- Broadband Service Benchmarks............................................................................54
9.1.1 Downstream/Upstream Broadband Speeds (Mbps} ..........................................................54
9.1.1 Supplementa) Benchmark Metrics......................................................................................54
9.2 Appendix B: Middle-,Second-and Last-Mile Broadband Technologies.....................................55
9.2.1 Wireline Broadband............................................................................................................56
9.2.2 Fixed Wireless Broadband .............................. ........... f..:.................................................57
9.2.3 Mobile Broadband .......................................... ....,y.,., .......................................................58
9.2.4 New Technologies for Middle-and Last-Mile. .:...... ,<:::<................................................59
10. Glossary................................................. . . . ............. . ..... .....................................61
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2e E������i�r� ��ar�r�°��ry
The following Master Broadband Plan for the City of Redding aims to provide a comprehensive
assessment of the current landscape of fixed broadband services for residential, business and industrial
customers, recommendations for expanding and upgrading broadband infrastructure and services, and
recommendations for developing and implementing local government policies which can support
broadband infrastructure deployments, and improving broadband service adoption. The broadband
assessment includes both fixed wireless and wireline services offered by Internet service providers (ISPs)
and uses publicly available data from the California Public Utilities Commission (CPUC)and its Broadband
Interactive Map. The recommendations for expanding broadband infrastructure and upgrading services
focus on deploying a high-capacity and high-speed fiber-optic backb��te to reach areas of interest(i.e.,for
economic development)in the city.The recommendations ford�u�(oping and implementing local policies
focus on reducing technical and economic barriers for new`brt�ad�aand infrastructure deployments and
streamline permit and authorization process in public rigf��s-of-wa�r.,�`he proposed policies also guide
incorporating smart city capabilities in the City c�f Ft�dding. The r��t�rnmendations for improving
broadband adoption include forming partnerships u�iittt existing organizatic�ns,and programs to establish
credibility and identifying best practices for outre�+�h; implementation,follov�-t�rc�ugh and success.
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�e I�1��"C�t���,��C�l�
The City of Redding, founded in 1887, the county seat of Shasta County, is located along the
Sacramento River, 162 miles north of Sacramento at the northern end of the Sacramento Valley. Figure 1
shows the location of Redding in California,"The Golden State".The city has a population of 91,236(2017)1
and 38,679 housing units (2017)1 in over 33 square miles.
Relevant demographic statistics of Redding include the following:
• Average household size {2017): 2.431
• Median age (2017): 38.21
• Income per capita (2017): $26,9961
• Average household income (2015): $65,3921
• Median household income (2017): $46,3891
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�ie�crr�10 �`����f f��dda'���o�cr�icsr�ira C'ali��rrricr cr�rd Sfa�s�ez C`c�tar�ty
The City t�f Redding is th�.�enter of'trade and commerce for the upstate region of Northern
California.Z Redding h�s received a rtumber of state grants over the last three years that are meant to
assist in revitalizing dc��rntown R��ding. Among the numerous projects supported by these grants is a
new Shasta County Courthc�cr�e�tar�i�ently under construction.
Redding has a wide variety of industries, including Sierra Pacific Industries, one of the largest
lumber producers in the U.S.Other prominent business in Redding include Seco Manufacturing,and Knauf
Fiberglass. Redding is home to Mercy Medical Center,one of the largest employers in all of Shasta County.
Redding also has its own municipal electrical utility, the Redding Electric Utility (REU), which provides
electric utility services for residential and commercial customers. Shasta County as a whole has a civilian
labor force of 75,400 individuals as of 2015. Shasta County's three largest industries by number of
employees were the service industry, government, and retail trade. Redding is also home to Mercy
Medical Center, a 267-bed hospital that offers some of the most comprehensive health care in Northern
1 U.S.Census Bureau,2013-2017 American Community Survey 5-Year Estimates
2 City of Redding. https://www.cityofredding.org
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California. Shasta County is also home to 41 public elementary schools, 8 middle schools, and 15 high
schools, as well as Shasta College and Simpson University. Lastly, Redding has a number of parks, an
extensive system of trails through natural spaces, as well as the Redding Aquatic Center, which is the
largest authorized provider of American Red Cross �earn-to-Swim Program in Shasta County.
Redding Electrical Utility(REU)
Redding is home to the Redding Electric Utility (REU), which provides electric utility services for
residential and commercial customers.The REU was founded in 1921 after the utility was purchased from
PG&E. In recent years, the REU has made great strides toward including various renewable sources of
power including wind generation. The REU serves approximatefjr 44,000 residential and commercial
customers within the City of Redding.As of 2017,the REU's mix t�f pc�wer resources consisted of 47%large
hydro, 25% natural gas, 23% wind, and 5% small hydro poa�er:Th� REU also boasts an impressively low
number and short duration of outages, less than half that ci�I�G&E.�'��REU has 726 miles of 12,000 volt
power lines,ll substations,and 2 switchyards that prc��rii�e power to a seru'rce territory of 61 square miles.
The presence of the publidy owned REU and its ext�rtsiue infrastructure,as sht��run in Figure 2,is a valuable
asset that may potentially be leveraged in order`t� accelerate and reduce ccasts of future broadband
deployments.
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The City of Redding is the largest city in the Shasta Cascade region and is the sixth-largest city in
the Sacramento Valley and continues growing local businesses as well as attracting new ones.This report
aims to provide recommendations for upgrading broadband infrastructure and services in an optimal and
cost-efficient manner to continue fostering a modern competitive environment with access to fast and
affordable internet services, needed for both residential and business customers.
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3.� �r��d�a�r��� lr��c�r��r��� ����� ��plic:aii�ras a� F��r�€ �l��r�h�rr� �`al��c�r��ai�
Education
High-speed access is integral in connecting teachers to stud�nts, to parents and to educational
resources. The rural digital divide diminishes access to education��,t��portunities, resources and sources
of academic and professional support3. Without adequate k�i�ii-���eed connectivity, rural schools and
students are challenged to obtain skills and information needed fo�`st�ccess.Teachers and administrators
also benefit from the capabilities associated with access to h'tgh-speet�l�iternet service. Many rural school
teachers and administrators cite connectivity limitati�ir�s as the primaC'j� flbstade to effectively using
technology in the classroom4. Additionally, studer��t� r��y lack broadband (�i��ny) connectivity at home,
putting them at a disadvantage when completing�s�ignments that require onlirie access and interaction.
As more bandwidth intensive material moves onlir�e�such as educational vid"e�s; interactive learning
tools, and video conferencing tools for teachers—connecti�r� sp��d��quickly becomitig a major issue for
rural educators5. By eliminating these t��rrfiers through exp�nde�l access, schools can prt�vide curriculums
that are currently unavailable due to limitet�r����rces or lack c�#subject-matter experts.
Health Care
The health care se��Ccir is t�merging as �.�eavy u�er cif telecorr��rtunications services. Improved
imaging techniques prc�c�ctce larg� t���a files. Mc��ring t��is� files }��tween providers requires substantial
capacity.Telecommun�ca�i�ns may be aJimiting fac�c�r�or the locativn of health care services.A location
that does not have the te��communic�tions capaci�y for efficiently uploading and downloading large
imaging files may fand provid�r�t�ec�t����s��y�her not te�1tt�ccate there or limit the services provided theres.
Telehealth �is a, ���`�. d�livery r'�cide that c�r�����rouide ���cess to specialists fior treatment of multiple
conditian�: It can provitl�more effe�t�tre and effi�i�t�fi health care delivery by connecting physicians with
physicians and patients witf�p�ysician��:The evidence for technologies that lower costs, connect remote
population�, �nd expand the re�ch of t�rban-centered medical expertise is strong. Access to reliable,
sufficient and a�f�rdable broadba�d is incre��ingly important to providing high-quality health care, and it
has become an e5sential infrastruct�re need for all hospitals and health systems8.
Agriculture
Rural broadband pla�rt�ri��tas historically excluded tne importance of fast, reliable Internet access
for agricultural areas. The rise t�f"precision agriculture" combined witn increasing interest in the use of
"telematics" and "big data" for agriculture, raises the question of how available broadband connectivity
3 Howley,C., Kim, K.,&Kane,S. (2012,June). Broadband and Rural Education:An Examination of the Challenges,
Opportunities,and Support Structures that Impact Broadband and Rural Education.
4 Ibid.
5 Ibid.
6 Kuttner, H. (2012). Broadband for Rural America: Economic Impacts and Economic Opportunities. Broadband for
Rural America: Economic Summit on the Future of Rura)Telecommunications.Washington, DC.
'Kvedar,l.C. (2014, February).Connected Health:A Review of Technologies and Strategies to Improve Patient
Care with Telemedicine and Telehealth. Health Affairs,33(2), 194-199.
8 Rural Health information Hub. (2017). Retrieved from https://www.ruraihealthinfo.org/topics/health-
information-technology. Retrieved from https://www.ruralhealthinfo.org/.
��
��
is for U.S. Farms9. Simply defined, precision agriculture is the application of information technology to
farm-level production operations and management decision making. Precision agriculture also offers
opportunities for improved farming efficiency, food safety and enhanced environmental sustainabilitylo
Broadband is increasingly becoming the backbone for innovative t�c(�r�ological tools farms and ranchers
us to maintain greater control over plan and animal productiar�, processing, distribution, and storage
resulting in greater efficiencies and lower prices, safer grai�rir�� conditions, safer foods and reduced
environmental and ecological impact.
Manufacturing
According to the National Association of M�r�ufacturers, manufactur�rs:deverage the Internet to
compete in global markets, deploy new technolbgi��,, connect their workfor�e,and their customers,
reduce costs, cut waste, enhance the environmen�t and cr��t� safer, mor�� r�eliable productsl1
Manufacturing establishments in rural �reas are involved i�r � =t�ariety of sectors: at�lue-added food
production,natural resource processing,ir�fr��tructure mana��rnent and clean-energy facilities. Forthese
industries, adequate broadband servic� ;has b��n documented as necessary for food supply chain
management, mining safety and transporta�itan and��gistics12.
Economic Development
Broadband ava���k�i�ity is posit��r�ly related'kt���rnp�oyment�r�rwth. This relationship is stronger in
areas with lower populatitin density ��nsistent with the theory that smaller or more isolated areas may
benefit more from high-spe�t� conne�ti�ans� giving b�asinesses in these areas access to larger markets13
The overall rel�tic���hip betwe�*�t#���t�t�b�ri�4��pansion a�td employment growth is positive. Moving from
no broadb�t�d "provir���`��tt� 1-3 prc��riders (th� �CG grot��s 1-3 providers together in its reporting) is
associat�c�:with employm�r�t�rowth �hat is higher kiy 6.4 percentage points over the seven-year period
from 199�.t�i 200614.Availab��karoadbar����?eed is also a factor in economic growth. Research shows that
offering the rninimum broadba�it�;service tta a!I businesses and residents is not enough to close the rural
digital divide. l�c���rty levels are abi�ut 2-6 p�rcentage points lower in rural counties with high download
speeds compared tt� otherwise si��lar counties15. There is a causal relationship between broadband
adoption in rural areas (defined �s'county-level adoption rates >60%) and higher levels of inedian
household income growth��d r�t�i�Ced unemployment when compared with similar counties that did not
meet the threshold)16.
9 Whitacre, B.,Gallardo, R.,&Strover,S.(2014,June). Broadband's contribution to economic growth in rural areas
-Moving towards a causal relationship.
10 Aubert, B.,Schroeder,A.,&Grimaudo,J. (2012). IT as enabler of sustainable farming:An empirical analysis of
farmers'adoption decision of precision agriculture technology.
11 National Association of Manufacturers.(2017). Retrieved from www.man.org.
1Z Xu, L.,Wu, H., &Shancang, L.(2014, November). Internet of Things in Industries:A Survey. IEEE Transactions on
Industria) Informatics, 10(4).
13 Kolko,J. (2010).Does Broadband Boost Local Economic Development. Public Policy Institute of California,San
Francisco. Retrieved from http://www.ppic.org/content/pubs/report/r_110jkr.PDF
14 Ibid.
15 Whitacre, B., Mark,T.,&Griffin,T. (2014). How COnnected are Our Farms.Choices:The Magazine of Food,
Farm,and Resources issues.
16 Ibid.
��
Workforce Development
Broadband increases learning opportunities in rural communities through online education.
Distance, online, and hybrid instruction provide access to learning for individuals who cannot always be
physically present in a traditional classroom setting or who may not be available at the specific times
classes are being offered.According to the Pew Research Centerl', 54%of Americans go online to look for
job-related information and 45% have applied for a job online. Employers need broadband to access
online training and classes to improve their employees' skills. Many�rusinesses do not have the budgets
to send employees to professional development or are too srri�il�"to send an employee away from
operations. Bringing professional development in-house elimiri����those challenges.
Tribal Communities
American Community Survey data shows that r.��it��nts of tribal lands t�ften lack basic infrastructure
and telecommunications services. Tribal lands ��`� among the most uni�erserved areas in terms of
broadband service, often due to remote and cha�le�ging terrain, low incorrres# lack of expertise with
telecommunications and barriers associated with bur���t�cratic gou�rnment progr�rnrs (U.S. Government
Accountability Office, 2016)18(Morran, 2�16).As a resu��,t�ie eec�C��rnic, educational�ir�d.communication
benefits associated with broadband ar"e:l��'�el,y absent for rrt�st people living on tribal lands (Broadband
for Tribal, n.d.).
Emergency Services
Scarcity of broadk�rtt���p���tX in rural�ar�as limit�;�rn�r��:ncy se�ui�es' communication capacities
and response capabiCi�i�s: Cutting-e�ge technc�lc�gi�� �re crit�cal for public safety communications
allowing first responders�c�send and.�-�ceive criti��l rr�ice, video and data to save lives, reduce injuries,
prevent crime and terror a�td noti�€y;, community rn�mbers about emergencies and disasters. Rural
geographies are 'rn need of �nt�gr�'ted �►�d interop�r�k�le systems to increase capacity, security and
accessibili�y arni�ng e��rgency ri�pt�nders.
:�.1 �r������d ���init��r�`����er�� �r�d ������ �s�c� �:��i��a��r�u� �:��r�r��;� ����
The terrr�'"broadband"coti�tr�only refers to high-speed Internet access that is always on and faster
than traditional di�t�up access ('�61�bps). This subsection presents federal and state definitions of
broadband and statist�c��af served�underserved and unserved areas based on these definitions.
The Federal Commu�ica�icsns Commission (FCC)defines advanced telecommunications capability
(broadband) primarily in terms of downstream and upstream speeds, as this is a particularly useful metric
for analyzing the deployment of these services. In the 2015 Broadband Progress Report19,the FCC updated
the definition of broadband to 25 Mbps downstream and 3 Mbps upstream (previously defined as 4 Mbps
downstream and 1 Mbps upstream). In 2017,the California legislature changed the definition of unserved
areas to areas where broadband is offered at slower speeds than 6 Mbps downstream and 1 Mbps
17 Pew Research Center Internet&Technology. (2015).Retrieved from www.pewinternet.org/2015/11/19/2-the-
in tern e t-a n d-jo b-see kin g/
18 https://www.gao.gov/
19 Federal Communications Commission (FCC).(2015,January).2015 Broadband Progress Report. Retrieved June
2017,from https://apps.fcc.gov/edocs_publicJattachmatch/FCC-15-10A1.pdf
���
upstream20. For more details on broadband service benchmarks see Appendix A - Broadband Service
Benchmarks.
According to the FCC's 2016 Broadband Progress Report21, nationwide there is a population of
33,981,660 (10% of the total population) without access to fixed broadband at current FCC broadband
speed rates (25 Mbps downstream/3 Mbps upstream). Based or� residence area, 10,551,623 residents
without access are located in urban areas, and 23,430,037 are l��a��d in rura) areas, accounting for 4%
and 39%of the urban and rural population,respectively.At t�te st�t��evel,there is a population of around
2 million people {5% of the state population} without access to fix�d;broadband services at FCC speed
rates. Breaking down this population by residence are����:0,182 of these��sidents are in urban areas(2%
of urban population) and 1,096,984 are in rural ar��s��i�% of rural populat�ora). Regarding tribal lands in
California, 29,052 people (51% of the population) h�ve no access to fixed brc��dband. This report also
shows that only 37%of the United States', and 43%o€C�lifornia's j��pulations haue�dopted broadband.
The California Public Utilities Cprr�rnission's (CPUC)la`C�sfi broadband service av�ilability data22, as
of December 2017 and released on Dec�rrab�e�'.2.018, provide� statistics regarding recent availability for
wireline (DS�, cable modem and fiber-to-tf��-harrte}�and fixed wir�less broadband services. Table 1 and
Table 2 show the broadband availability by��:chnola�y.�rt Californi� k�ased on the CPUCs definitions of
served (at least 6 Mbps dc�vxiristr+eam and 1 M�ip� upstrea�t�,i�r�served(1€ss than 6 Mbps downstream or
1 Mbps upstream), and t���service��►� availabi(i'�y or�t���i��vai�abl�� data)��areas. The goal of the State of
California is to provide��cess to 98%�`�California ���tseholds23.
Tc�bl�Z, C'crli��rni���i�ase6���a�������d by brc��d6c�rad�y tc�h��lcx��r��1�(�'�'C1C'.�C?1$�
�'crfi�1; lJr�served Households Unserved Households
Ser�u�cl Household�
' HousehotC(5 with Slow Service with No Service
Wireline 13,113,84d �,2.,505,5��: 95.4% 115,598 0.9% 492,645 3.8%
Fixed 13,113,840 '�k50,718 �.4% 32,519 0.2% 12,630,604 96.3%
Wireless
Combined ��,`��,3,840 12,F4�,624 96.5% 92,128 OJ% 372,088 2.8%
7�c�b0�.2, Ccalifrarra�i��'�r°��t�t�cf c�rb�rra heacasef�cal�s��r�rea�by i���hrrcalcagy.2�12 7�C'�'C9C'2t?.Z��
Statewide Urban Households Rural Households
Households Served Served Served
Wireline 95.4% 97.7% 53.6%
Fixed Wireless 3.4% 1.9% 30.8%
Combined 96.5% 97.8% 72.5%
20 California Legislative Information(CALEG).(2017,October).AB-1665 Telecommunications:California Advanced
Services Fund. Retrieved Dec 2017,from
https://leginfo.legislatu re.ca.gov/faces/bil I NavCl ient.xhtm I?bi I I_id=201720180AB1665.
21 Federal Communications Commission (FCC). (2016,January).2016 Broadband Progress Report. Retrieved lune
2017,from https://apps.fcc.gov/edocs_public/attachmatch/FCC-16-6A1.pdf
Zz California Public Utilities Commission (CPUC). California Broadband Validation Methods:Round 2017. Data as of
Dec.315t, 2016.
z3 Pub. Util.Code section 281(bj(1)states; "The goal of the program is, no later than December 31,2015,to
approve funding for infrastructure projects that will provide broadband access to no less than 98 percent of
California households."
�:�
�.:� �rca�d��r�d ��-�r��r�c� �ri�r��rvs
This subsection presents applications that,in recent years, have driven up broadband demand both
in terms of customer and speed demands. There is an increasing reliance on broadband to perform
multiple functions, and instances of consumers within a single _household routinely using multiple
applications simultaneously. According to the FFC's 2015 Broadk��t�t� Progress Report24, the following
applications are the main drivers for broadband demand:
• Video services: Video services provide a wide rang�c�f optit�i'� including video streaming, video
on demand (VoD), IP TV, video games and vid�cr conferencing.�ccording to the 2014 Sandvine
Report, real-time entertainment such as ;�ieleo streaming is' r�sponsible for over 67% of
downstream bytes during peak periodsz���"able 3 shows downstream�peeds for video services
recommended by three technology compani�s.Based on 2Q14 consumerst�tistics,approximately
77% of households in the United States have �'C least an�.�igh-definition t�leuision (HDTV) set,
and about 46% of all househc►lds have multiple .H[�"T�ls.�6 Video conferer��ir�g is also facing
increasing levels of usage, such��f`e�r�t�lemedicine ar�c!�istance education.
7�a6d�3. 6�ectarr�r�e�rc��d d�a�ri���°��t�m s#�c��t�s�`t���id�ca s�rvic��s
Service ` �ownstr�arn ; Recomt�endation
NL���c�eo ����� ��Mbps. ; ����l��tf�ix
U�t�a;ND quality�i�deo 25 M#��s Ne�flix
720p�t��eo 6 IVf���, Apple
,, 1080p H[�uideci �� �� ��. 8 Mbp� :� Apple
4�[�video �Mbps . DISH
• �at� services: Accord�ng to tki� 2014 Sandvine report, web-browsing is responsible for
appr�s�irmately 10% of d��srnstream data traffic during peak period Internet use. Data transfer is
another� ��plication that is growing in demand and is commonly used in telecommuting.
Downstre�rr�;speeds impa��t�e time websites take to fully load,and the time files take to transfer
from servers to i��er's de�ices.
• Voice services:Vt�%��,s�rui��s have been replacing traditional telephone service by allowing users
to make phone calls�t�ing broadband connections; also called VoIP technology.According to the
2014 FCC Loca) Competition Report, residential VoIP subscribers increased from 19.7 million in
24 Federal Communications Commission (FCC).(2015, February 4).2015 Broadband Progress Report and Notice of
tnquiry on Immediate Action to Accelerate Deployment. Federa)Communications Commission Hearing,
Washington, D.C.,FCC15-10, 21-25.
25 Sandvine Intelligent Broadband Networks,Global Internet Phenomena Report,2H 2O14 at 5(2014),
https://www.sandvine.com/downloads/general/global-internet-phenomena/2014/2h-2014-global-
internetphenomena-report.pdf(2014 Sandvine Report).
z6 See Press Release, Leichtman Research Group,The Majority ofTV Sets Used in U.S. Households are Now HDTVs,
4K Ultra HDTV in Early Stages of Development(Mar. 7,2014),
http://www.leichtma n research.com/press/030714release.html.
��'
December 2008 to 37.7 million in December 2013.27 VoIP applications require a minimum of 100
kbps downstream and upstream speeds to enable real-time voice communications.
• Social networking and cloud applications: Social networking applications have increased in
demand and,as of 2015,approximately 73%of adults online use a social networking site of some
kind28. Cloud computing has also risen in demand due to its capability to allow users to store and
access data and information {photos, music, emails, documents, etc.) over the Internet.
• Machine-to-machine applications:Machine-to-machine applications include smart meters,video
surveillance, health care monitoring, transportation and �i��l�age/asset tracking. In 2013, Cisco
Systems reported that 33%of IP traffic originated with nc�t�-P�devices, but predicted that by 2018
the non-PC share of total IP traffic would grow to 571;
This introduction section was intended to p��i�it�� important broadk�a,r�d definitions and current
context, both nation and statewide,to assist with understanding the importan���f expanding broadband
infrastructure deployments and adoption programs in,�he City of R�dding.The fol�tsuuing section presents
the current broadband landscape in Redding based on C�?L�C's k�r�i�t�band service av�ii�ability data.
27 Industry Analysis and Technology Division,Wireline Competition Bureau, �ocal Telephone Competition:Status as
of December 31, 2013 at 14(Oct.2014),
http://transition.fcc.gov/Da ily_Releases/Da ily_Busi nessJ2014/d b1016/DOC-329975A1.pdf.
28 Maeve Duggan&Aaron Smith,Social Media Update 2013, Pew Res. internet Project(Dec.30,2013),
http://www.pewinternet.org/2013/12J30/socia l-med ia-u pdate-2013/.
,
�.TM�
�e ��arr�n� �rc��d�a�n� ���c��c�p�
4-.2 �3���c���r�� S���o,fic�s ���m����li��° ���r��d, �rss���;°�� �r�c� [�� S�r�rdc�� �ar���s�
This subsection presents the advertised broadband service availability in the City of Redding,
based on the CPUC's broadband availability data as of December 2017(released on December 2018).The
advertised service availability data are collected by the CPUC frc�i� a majority of broadband service
providers in the State. Most of the broadband availability is pr�iuicl�d by last-mile broadband service
providers29.Coverage data for wireline and fixed wireless prouid��'s are reported at the census block level.
The data are mapped and validated for accuracy using CPt��'�broad��nd validation methods30. For this
report, broadband availability data plots are generated frt�m the Calif�ir��� Interactive Broadband Map31
Table 4 shows the major residential and b�i5iness Internet service �ir�viders in Redding and the
technology used to provide services,from DSL, cakile and fiber optics,to terrestr�al fixed wireless.
7"�61��. 7"�chr�ca9cag�e caf��rir����y It�ferr�e�.��°�°�ic��rc�vrd��
internet Service Provider �eruice Type Technologies�f��red
� Asymmetric xDSL
AT&T California Residential t�3nly � ����� ADSL2+
Allstream Business US, Inc. Business C�t�M� • Other'Ct�pper Wireline
I ' � Cable Mi�dem DOCSIS 3.0
Charter f��sidential &�usiness � �j������Carrier/Fiber to the end user
Com-Pair Services Res�c�ential Only ,. • Terrestrial Fixed Wireless
Digital Path R�s►��ntial Only • Terrestrial Fixed Wireless
• Asymmetric xDSL
• Other Copper Wireline
Eart�i.�r�k Business, Lt,� :; �u��r�ess Only • Cable Modem other than DOCSIS 1,
1.1, 2.0 or 3.0
Geolinks ' E��sidential : • Fixed Wireless
Level 3 Comr»L►r�ications ��I�iness Only • Other Copper Wireline
XO Communicatii�l�� Cic�siness Only • Other Copper Wireline
• Optical Carrier/Fiber to the end user
U.S.TelePacific Business Only • Other Copper Wireline
• ADSL2,ADSL2+
PAETEC Communications Business Only . Optica)Carrier/Fiber to the end user
NetFortris Acquisition Business Only • Other Copper Wireline
• Optical Carrier/Fiber to the end user
MCI Business Only • Other Copper Wireline
29 For a detailed description of last-mile broadband technologies see Appendix B:Middle-,Second-and Last-Mile
Broadband Techno/ogies.
3o California Public Utilities Commission (CPUC). California Broadband Validation Methods:Round 2017. Data as of
Dec.31S`, 2016.
31 CPUCs California lnteractive Broadband Map available in htt : w�ruu�vobrr��dba�d�a .e�, c�v .
���
4,1.1 Wireline artd Fixed V�tireless Service Auailability
Wireline Service Availability
Figure 3 shows the wireline served status and downstream speeds in Redding as of December
2016,and Figure 4 shows a closer look at the served status and downstream speeds available in downtown
Redding. Most of Redding has wireline service with downstream speeds between 100Mbps and 500Mbps.
Small pockets throughout the city are currently without wireline service. Downtown Redding is partially
served with wireline downstream speeds between 100Mbps and, 500 Mbps. Several blocks within
downtown Redding are currently have no wireline service. It is im��irt��t to note that for both cable-and
DS�-based broadband service, coverage depends on the foat���r�t of cable television and traditional
telephone networks deployed in the city3Z.
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32 For more details on the technical capabilities and limitations of wired technologies,see Appendix e:Middle-,
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�i�u�-e 5 and Figure f s�ow the wireless served status and downstream speeds in Redding as of
December 2�117;, as well as a clt�ser loaf� at the served status and downstream speeds available in
downtown Reddirtg,The majority cif Redding is`without wireless service; however,there are a number of
isolated areas wi�Ehirt�he city with`tiuireless service. Most of the scattered wireless service in Redding has
downstream speeds between 10 a�i�25 Mbps; however, two small areas feature speeds between 1 and
2 Gbps.Downtown Reddin�is curi`e�tly without any wireless service.Depending on the location of towers,
access points or base stati�ir�����rd line-of-sight (no visible obstructions) to customer premises, fixed
wireless service can cover wide areas, however, environmental factors such as trees, buildings and
topography can affect availability of the fixed wireless service33
33 For mare details on the technical capabilities and limitations of fixed wireless technolagies,see
Appendix 8:Middle-,Second-and Last-Mile Broadband Technologies.
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4,1.2 Advertised Downlaad Spe�d Availability by ISP
AT&T California
AT&T offers a mix of Asymmetric xDSL, ADSL2 and ADLS2+ technologies within Redding for
residential customers. Figure 7 shows broadband speeds offered by AT&T in Redding (December 2016).
Asymmetric xDSL,speed offerings in the 768 Kbps-1 Mbps download range,are available on the outskirts
of Redding(yellow areas}.ADSL2 and ADS�2+are offered in several scattered neighborhoods(brown and
light-brown areas) with speeds 1 Mbps-10 Mbps, and more widespread (light-green areas) are speed
offerings of 10-25 Mbps.
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Allstream Business
Allstream Business is a business-class-only broadband service provider that offers broadband to
Redding businesses using technology categorized as other copper wireline technology. Figure 8 shows
broadband speeds offered by Allstream Business in Redding (December 2016). Allstream Business offers
download speeds between 1 and 3 Mbps in a small area near Cypress Avenue in Central Redding.
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Charter
�I��r�er offer��+���31e Interr��t service t��r��identia�l customers using cable technology. Figure 9
shows s�e�ds offered by Cl��rter in F��d�ing (December 2017). Charter advertised between 100 and 500
Mbps dovu���ad speeds in mc��t areas o�t��city(blue areas).
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C�im�pair o�f�rs i� a wirel�ss service prt�uic�er �F�at concentrates on supplying rural parts of
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L�igit�l Path is a�itireless serui�e provid�r����serves both business and residential customers in
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Redding�Fi��re 12)with adverti��d spe�l��f 10-25 Mbps (light-green areas).
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EarthLink Busin�ss
Ear't�iLink Bus�ri�ss:is a bu���c�ss-class-on7�r brc�adband service provider that uses a combination of
asymmetr'ie xDSL and othere�pper wir�line.EarthLin�C�erves only a small area in the southeast of Redding
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��€��I�r�ks is��a k��`u��lband�s�rvice provid�r�that [�ses a terrestrial fixed wireless �echnology to
provide b�`c�adband service t�i its custt�.rners. Geolinks serves only two small areas central Redding (Figure
14)with at�v�rtised speeds ran�ir�g from �.-2 Gbps(purple areas).
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NetFortris
N�'t�ot`tris is � bi�siness-class�only broac�t��rtd ser�vice provider that uses toher coppwer wireline
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PAETEC Commun,ications � ��� � ��� �
PA���C is s bu�i�iess-clas�-�nly broadbant�:service provider. PAETEC serves only a small area in
southea�t{�igure 18) Redtf�ng with adu�rtised speeds ranging from SO-100 Mbps (dark green areas).
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U.S.TelePacific
1���,.Telepacifi�i�� busines���roadbarrt��e�r�iee�rrovider and optical carrier that offers fiber-to-
the-end-�user and copper wir�line cor�r�ectivity. U.S.Te�epacific primarily serves businesses in the central
Redding wi'th�a few other pa�k�ts in no�t�ern and eastern Redding. U.S. Telepacific's advertised speeds
include those.ranging from 1.� I�Ibps-10 M�ips (brown and light-brown areas) to 10 Mbps-100 Mbps
(green to light-gi�e�n areas. Figure 1�shows b�rsiness-class broadband service provided by U.S.Telepacific.
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XO Communicatia�ns
�C�,��titnmunY��iar�s is a�kict�Nness broad���i�servi�e provider and optical carrier that offers fiber-
to-the-end-user and copp�r wirelin� �c�nnectivity. �C� Communications primarily serves businesses in
central Ret���ng with advertis�d speeds c�f 1.5 Mbps-3 Mbps(light brown areas) and 100 Mbps-S00 Mbps
(blue areas). �i�t�re 20 shows bu�ir�ess-clas�k�rpadband service provided by XO Communications.
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�igure�t�. ��-c�c�dbcz�d s���rr��s����e�ff�r��by�C��c�rr�a�rrt�rar`c�tf€ar��fr�f�edc�r'ra�(L?�c�rraber��?.2�).
4.1.3 M��s���c� ��t��dbar�d ����iee and C�t���lc?ad �peed Availabi(ity
T�i� Ca1SPEED appCrcat�c�n is a �ar�fessional-level broadband testing tool that allows conducting
performanc� ��sting of both f��ed and rnctbile broadband services. This application was developed at
California Stat�CJr�iversity,Monte�-�y Bay and is used by the CPUC for measuring and validating broadband
coverage from any broadband subs��iber location.CaISPEED can be downloaded from www.calspeed.org.
The broadband testi�i� results ar� displayed in the user device and tnen sent to a CPUC server for
displaying on the Califorr�ia Broadk��nd Interactive Map34. CaISPEED measures broadband performance
parameters, such as down�Cre�r� �nd upstream speeds, latency, and jitter (see detailed definitions in
Section 10: Glossary). Resul�� cif CaISPEED can be used to validate broadband service availability in a
specific geographic region and update the served or unserved (slow service or no service)status.
Figure 21 shows current CaISPEED results for fixed broadband services in the City of Redding.The
current number of ineasurements (less than 20 points) does not allow to proper validation yet of
broadband availability in the city. More measurement points would be required to assess levels of
broadband availability for wireline and fixed wireless broadband providers.
34 Califarnia Public Utility Commission (CPUC). Broadband Interactive Map. http://www.braadbandmap.ca.gov/.
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Fte�idential broadbar�c3 adoptic�r�;is defined as the number of consumer broadband subscriptions
divided by the total number ;cif househc�lr�s within a defined geographic unit. Data about broadband
subscriptions i��onfidential but t�i� CPUC d�i�es;publish a limited set of broadband adoption statistics by
census tract. Figure 22 shows adap�ion rates in Redding.
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Broadb�nc� adoption r�t�s r�ng�'Fri�t�'� 60 to �tt�r 80 percent throughout most of Redding, with
the high�st at��ptici�i";rat�s in the"�astern edg� ciftl�e ci�y; as well as two areas in the west. Downtown
Reddin���s the lowest brt��t�band ad�ption rates iri��te city, with rates between 20 and 40 percent.
�.� �llic�d����,il� �er�✓�c� ������k�ili�y�
This subsectit�r� presents m�t�dle-mile infrastructure available in the City of Redding area. The
middle-mile segment �r�vides �►��h-speed and hign-capacity transport and transmission of data
communications from an �ag�r�g�tion point (i.e., central office, cable headend or wireless switching
station) to an Internet point i�f presence (POP). For a detailed description on middle-mile broadband
technologies see Appendix e:Middle-,Second-and Last-Mile Broadband Technologies. Figure 23 shows
the middle-mile infrastructure (fiber-optic-based backbones) in or near Redding offered by AT&T,
Frontier, and Charter. AT&T, Charter, and Frontier also offer last-mile broadband services to residential
subscribers in California; however, in the City of Redding, only AT&T and Charter are both a fiber-optic-
backbone carriers and residential ISPs; Frontier does not have a residential service in the city.
It is important to note that fiber-optic carriers usually do not provide or report information of
their fiber-optic routes.The route information presented in this subsection was collected over the past
few years from unofficial discussions with ISP's personnel and local government staff with knowledge of
:�:�
fiber-optic deployments in the county.The Geographical Information Center(GIC) is currently working
with ISPs and the CPUC to update and validate fiber-optic routes in rural Northern California.
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5.2.1 Fibe�-to-the-Norr�e {F�TN) �etwork D�sigr� .
The Downtown Redding Internet Utility (�i�t��) Whitepaper35 states ��i�t the City of Redding is
considering a proposal to research,develop,and poteritially implement a new fi�er�r�ternet utility service.
This initial service would be offered in the downtown ar�a of Rec��iri�and serve as a pilot phase for both
residential and commercial customers�:;"��i��oal of the new:c�t�IJtjr is to spur economic clevelopment, help
revitalize the downtown area, and ma1��-t#�e �ity more cornp�titive and marketable. This whitepaper
highlights the uniquely advantage of Reddi��to p�iuide this serv�c�by owning the existing infrastructure
through the city-owned Redding Electric Utili�j�(REU):
Based on the curret�� �rii�tiband service:cove���� and r�taximum service speeds in the City of
Redding, from 100 Mk��s to less tl�an 500 Mbps �Ch�rt�r), this re�acirt supports that the next step for
upgrading broadband servic� is deplo�ti�g a fiber-o�t�c network to provide gigabit services for residential,
business, and industrial custc�rr�ers a�td cc�mmunity ain�hor institutions. This subsection presents a high-
level technic��c��sigr�assessmen�fc�r t�re pr�pc�sed fiber�ervice in the Downtown Redding pilot area.
Fc�r�he design �f��i�fiber-e��t(�network�r�s�nted in this subsection,the analysis uses technical
guidelin�� and recommencia�ic�ns frorr� �ndustry and academic papers,36,3',3s standard telecom industry
infrastruct�re ; and deployrr�e�� metl�crds,39,4o and manufacturer equipment descriptions and
configurations,�����among other scictrces.Th��'rain elements of the network are the following:
• Access Nod� {�ore site c�r �entral exchange): The access node houses all active fiber-optic
transmission �t�taipment, m�nages all fiber terminations, and facilitates the interconnection
between the inc�mirtg�ptical fibers and active equipment. For equipment installation, it indudes
optical distribution fi��tr��s, cable guiding system, uninterrupted power supply, dimate control,
3s City of Redding Council(2017). Regular Meeting December 19,2017,Agenda Packet(pp739-744).
http://reddingcityca.iqm2.com/Citizens/FileOpen.aspx?Type=1&ID=2466&Inline=True.
36 Federal Communications Commission(FCC). (2010,April).Tne Broadband Availability Gap-OBI Technical Paper
N0.1. Retrieved from https://transition.fcc.gov/national-broadband-plan/broadband-availability-gap-paper.pdf
37 Chatzi,S., Lazaro,J., Prat,J.,&Tomkos, I.(2013).A Techno-Economic Study on the Outside Plant Cost of Current
and Next-Generation Fiber-to-the-X Deployments.Fiber and lntegrated Optics,32(1), 12--27.
d o i:10.1080/0146803 0.2012.754070
38 Rokkas,T.(2015).Techno-economic analysis of PON architectures for FTTH deployments:Comparison between
GPON,XGPON and NG-PON2 for a Greenfield operator.2015 Conference of Tetecommunication, Media and
tnternet Techno-Economics(CTTE). Munich:Germany.
39 Fibre to the Home Council Europe-Network Infrastructure Committee. (2007). FTTH Infrastructure Components
and Deployment Methods. FTTH Council Europe.
4o Fibre to the Home Council Europe-D&O Committee. (2016).FTTH Handbook-Edition 7. Retrieved from Fibre to
the Home Council Europe-Resources:
http://www.ftthcouncil.eu/documents/Publications/FTTH_Handbook_V7.pdf
41 Corning.Communication Networks. Retrieved from Corning:
http://www.corni ng.com/worldwide/en/prod ucts/commu n ication-networks/prod ucts.html
42 Huber+Suhner. Fiber To The Home. Retrieved from Huber+Suhner Fiber To The Home:
http://fibertothehome.hubersuhner.com/en/
�
:��
and access node security. In the case of in passive optical networks (PON), each access node can
serve up to a maximum of 100,000 users.
• Primary Fiber Concentration Point(PFCP)(distribution site or local exchange): PFCPs are located
closer to the subscribers and aggregate traffic from SFCP.They can be located in underground or
pole-mounted cable-joint closures or street cabinets. In the case of PON, handholes or manholes
may house splitters(passive elements)and branching boxes,and in the case of Ethernet,cabinets
may house switches and active electronics (active elements).
• Secondary Fiber Concentration Point (SFCP) (fiber distribu#ion cabinets or outdoor cabinets):
Each cabinet serves a single service area with 600 to 1,00(}p�ssings per service area. SFCPs are
optimal or strategic points that enable drop cabling tc�'=k�e split out as close as possible to
subscribers. They can be located in underground or�tc���r�c�unted cable joint closures, or small
street pedestal structures. SFCPs house splitters ar�t��'-bran�h�s that help to disjoin drop cables
(in the case of PONs)or active electronics(in tl���ase of Etherr���}.
• Fiber Optic Feeder Cabling: This cabling r�tras,from access nodes �� PFCPs and uses 10/40/100
Gbps core links (432 or 288 strands) over t�i�r�rse paths (for PON or E�h�rnet) using underground
or aerial deployment. For underground deplt�yrnent, digging and laying et��tduit are required; for
aerial deployment, pole make-ready is requireti.�;��
• Fiber Optic Distribution Cabling;:This cabling runs fir��rr P�CPs further into the rietwork including
redundant links, and consists o�mec�iu,m-sized fiber ct�ta�ts (48-192) using underground or aerial
deployments. For underground d��aloyr�i�r►t,,digging ari�l laying conduit are required; for aerial
deployment, pole make-ready is reqc��red.
• Subscriber Tap: Fiber�t�pt,ic housing Iti�ated in t��.r'ight-of-w�j�,near to the customer premises.
The subscriber t�p��rt ki�irt�talled on a pole orit�tcl�r��'�r�nd.
• Drop Cabling:T�i�cabling rur��,from tap`s�'tra res�ii�ences or�iaildings (maximum of 0.3 miles) and
consist of 1 or 2 fiber cables tasing under�round or aerial deployment. In the case of aerial
deployment, drop�ak��ing mu�t;`withstand en�irQnmental conditions using armored cables.
• Optic�l i�l��uuc�rk Unit���CI�:A�tiv��c�uipmen�it�stalled on tne premises of subscribers.
F�g�re 24 shows a Fiber-to�tFte-Home (F1`7'H}"configuration diagram and a subset of the main
network�I�ments describet��k�c�ve.
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43 Fibre to the Home Council Europe-D&O Committee. (2016).FTTH Handbook-Edition 7. Retrieved from Fibre to
the Home Council Europe-Resources:
http://www.ftthcouncil.eu/documents/Publications/FTTH_Handbook_V7.pdf
���
For carrying out the fiber network design assessment, the City of Redding Public Works
Department provided geographic information systems(GIS)data of the downtown pilot project area such
as land use by category (i.e., residential, office, retail, industrial, public, etc.), building footprint, census
blocks, roads, poles, electric overhead, hydrants, pipes, manholes, among others. A subset of these GIS
data is shown in Figure 23.
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:�;�
Other important GIS data used for the technical analysis was REU electrical usage of customers44.
This approach was proposed by Steve BIum45 based on the assumption that electrical usage patterns are
good rough indicators of broadband service potential. The same approach was implemented in Blum's
assessments for Healdsburg46 and Palo AIto47.Table 5 shows electrical consumption ranges and customer
classes used for this technical assessment and Figure 25 shows location of customer classes in the
downtown pilot area.
Estimated Annual ��lor
Class
KW H C�d�
1,000,000+ ����A Red�°:����.�
500,000-999,999 B Orange
200,000-499,999 C Yellow
50,000- 199,999 D :�reen
15,000-49,�99 ���� � �� �lue
-2,000- �A�,��� ,. F� . �� -�� Grey
Less than -�,€l�� G Black
7"c�#�le �. �lectr�c c��astcrt���-��y ec�rascrrr���i�ar� c�1�s.s
44 These data did not include any information that identified customers or any other private customer information.
The data only included electrical usage patterns of residential and business locations.
4s Tellus Venture Associates—Management, planning and business development consulting for community
broadband. https://www.tellusventure.com/
46 glum,S. (2015). Healdsburg Fiber Optic Network Assessment,201anuary 2015.
47 Blum,S. (2011). Market Research Report-Citywide Ultra High-Speed Broadband System Project,City of Palo
Alto, May 19,2011. https://www.tellusventure.com/downloads/Palo-Alto-Fiber-Market-Research-Report-
19May11.pdf
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Figure 26 shows the design of a proposed fiber-optic network48 for the Downtown Redding pilot
project area.The design includes only the backbone or feeder fiber route that passes through the entire
project area. The design does not include lateral fiber lines or customer drops, as these lines will be
deployed later on based on specific customer locations.The network and feeder fiber route design criteria
include:
• The interconnection point is located in a middle-mile aggregation facility to the south of Redding
• Optimized backbone or feeder fiber route to reach potential large business and industrial
customers
48 The network design underwent a few iterations in order to optimize the route and maximize customers reach.
The design also incorporated a first round of feedback provided by the REU staff.
���
• Feeder fiber route uses wooden poles as recommended by REU staff
• Feeder fiber route follows electric primary overhead lines, and distribution fiber and drops (not
included in the design and not shown in the diagram)will also follow secondary overhead lines
• PFCP(cabinets) are located in shared facilities with REU's substations
• SFCP (aerial cabinets) are located near to potential high demand areas
• Subscriber taps are located near to potential customers
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��;
It is important to highlight that this is a high-level fiber network design assessment and not a fully
detailed technical fiber network design. Table 6 shows a summary of the main fiber-optic network
elements for providing service to the Downtown Redding pilot area.
T"czb9�6. .Sca�aaaczr�r r�f�r�ir�r�et�nrcark e1��n�rrts f�ar����T7��f a�et�nrcar-k f�rr fih�C'ity�f 6��dc�fr��
Item Clnits Total
Access Node Units 1
Primary Fiber Concentration Point(PFCP) Units 2
Secondary Fiber Concentration Point(SFCP) L�raits 4
Subscriber Taps(Cable Splice Closure/Handh�l�s) Units 57
Fiber Aeria) Deployment Miles 4.41
Fiber Underground Deployment Miles 0.55
The following subsection pres�nts a high level e�st �����sment to estimat� the cost of this
FTTH/FTTB network.
5,2.2 NigF�-�evel Fiber-t�ptic i�etwark ��st�s����r�ent
The high-level cast�s��ssirnent for the fik�er-optic t��Cwctrk in the E�tiwntown Redding Pilot Project
Area is based on a corn��n�tion ofcc�stdata inputf'r+arrr���e IVation��T�lecommunications and Information
Administration (NTIA�u�i�c�adband U��, publicly :��r�ilable fiber network deployment reports, and
communications with experts in the r�t�tter49.Table 7�hows the estimated and selected cost ranges and
average costs o€,�h� main fiber netwc�rl��l�ments.
7��bB�,7����r�r���d�ia�����ts(�cte���s_�rrc�cr��r���,��;�c�r t°he rracafrr flb�r-��atic r������k�}err��r�t�fc�r tda�
�t���tc��rr� ����i�tg F�iBr�t F'r�pe�t
Estimated Estimated Estimated '
Item Description I.ow Cos# Average High Cost
;�USD) Cast(USD) (ll5D)
Access Node{Pt�P) $958,775 $1,095,713 $1,232,650
Primary Fiber�c�rte'entratic�n Ptiint(PFCP) $650,000 $675,000 $700,000
Secondary Fiber Ci�n��nt�`at'tt�n Point(SFCP) $50,000 $75,000 $100,000
Subscriber Taps(Cable Splice Closure/Handholes} $100 $250 $400
Aerial Fiber Deployment $21,614 $44,037 $66,460
Underground Fiber Deployment $98,760 $245,380 $392,000
49 These costs are based on the follawing sources:
• CTC technology&energy(2015),Cost Estimates for FTTP Network Construction—Prepared for City of
Santa Cruz,California, May 2015
• BroadbandUSA-NTIA(2017),Cost at-a-Glance: Fiber and Wireless Networks, May 2017
• Nationa)Telecommunications and Information Administration(NTIA)(2009-2015), Broadband Technology
Opportunity Program (BTOP)—Projects Cost Summary,2009-2015
• City of Chico Public Works Department, Underground Conduit Installation Cost Data
• Redding Electric Utility(REU),Cost Estimates to Install Fiber in Poles
• Steve Blum (2017), Recommendations for fiber cost estimation ranges for the CTC 2015 Report
�:�
Table 8 and Figure 27 show the estimated total deployment cost for the fiber-optic network in
the Downtown Redding Pilot Project Area.The initial total cost estimate ranges from$2.6Million to$3.5M,
and an average of$3Million.
�"�bd�$e �s�irr�at�d tc�t�1 c���r��g�rra�r�fi��,sts
Item Description—Initiat Scenario Quantity ; Tota) Aver�ge ' Total
Low Cost Total Cost Wigh Cost '
Access Node(POP) 1 $958,775 $1,095,713 $1,232,650
Primary Fiber Concentration Point(PFCP) 2 $1,300,000 $1,350,000 $1,400,000
Secondary Fiber Concentration Point(SFCP) 4 $200,000 $300,000 $400,000
Subscriber Taps 57 $S,ZQO $14,250 $22,800
Aerial Fiber Deployment 4.41 $95;3.��.74 $194,203.17 $293,088.60
Underground Fiber Deployment 0.55 ��4,318 $134,959 $215,600
Total Costs` �2,�14��111 $3,089,125 $3,564,139
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Figure 28 shows netvutr,rk element cost percentages of tne average total deployment costs which
help to identify the main cost drivers.The main cost driver is the PFCP,44%,followed by tne access node,
36%.The least cost driver is the subscriber taps.
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Network Design and Cost Optimization
After identifying the main cost drivers, th�;r�etwork design was optir�ri��d. The initial design
included network elements (PFCP and SFCP) which �i�uld handl�,future growth t�� the network to a
citywide scale. However,this potential network expansia�ma,y.��txie after a few year�,therefore,from a
financial stand point, it would be bett�r tci c�ptimize (red�c�j��ie initial upfront cost to only necessary
equipment to serve the pilot project areas,Furtf��rmore, new g�n�ration of fiber network equipment and
electronics comes after few years, then it �ak�s ser�se to purcF���e latest equipment with enhanced
capacity when the time for network expar�sitan come��:�he desigrt t�f the network was optimized to
network elements and teat�l���ts shown in 1`a�ale 9 and Figi�re 29. Th�;�iptimized network cost ranges
firom $1.9Million to$2:�1�?"lillion, ar�d��n average q�$2.3IVI3�lion.��. ':;;�
7`��l��, �stir��t�r�c��ti�ral��a�fr�tczl c����cay�rr��rr��a�st.s
' Item Description—Optimized Scenaria Quarrtity' �otal Average Total
I.avu Cost Total Cost ' High Cost
Acce�s(�t�de(POP) ; 1 $958,775 $1,095,713 $1,232,650
Primary��ber Concentration f�t�int(PFCP� 1 $650,000 $675,000 $700,000
Secondary�itser Concentration Pcsint(SFCP) 3 $150,000 $225,000 $300,000
Subscriber Tap� 57 $5,700 $14,250 $22,800
Aerial Fiber Depla�rt��:nt 4.41 $95,317.74 $194,203.17 $293,088.60
Underground Fiber b2�loyment 0.55 $54,318 $134,959 $215,600
Total Costs $1,914,111 $2,339,125 $2,764,139
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Further Network Des�gt��nd Cost Op�irnization ��
Further cost optimiz�tic�n can b�achieved by'ii�entifying the main cost drivers and then optimizing
the costs findirig syri�rgies with th�city and��lJ infrastcu�ture and operations. Figure 30 shows the main
cost dri�r�rsia�the opt�r��z�d fiber ri�twork.The r�i-���r�cost driver is the access node,47%,followed by the
PFCP, ���: Table 10 show� the estirti��ed costs of t�e access node elements. If there is a REU or city-
owned fa�il�ty with appropriate infrastru�t�re that can house the access node elements,then that would
mean around ��33,000 cost rei�uction in the access node cost. It is recommended further discussions
among the poten�Na.l project stal��*�olders in order to discuss synergies that could lead to more cost
optimization. Cost �i�timization c�ri come also from working together with the city public works
department for under��ciund fiber i��ployment in certain segments of the fiber network route.
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7"c����1f1. E�strra��t�d c���5t���ee��s rrad�c�le�en�.� ~ ,
Access Node{POP) Low A�erage High
Cost +Cast I Cast
Communication Huts $��6,�{70 $334,000 ���2,000
Generators $7�;t�QO $126,000 $182,000
Network Router $15,Ot�Q $20,000 $25,000
Network Switch $2,500 '$5,000 $7,500
Patch Panel ���0 �300 $500
TransponderG�rd��� �� �$S,t��J�I� $7,500 $10,000
Network Trans��iVer $100 $300 $500
Mounting Hardwar���ables, ��ttery&Cabine� $300,000 $315,000 $330,000
Circuit Breaker Kit $75 $113 $150
Batt�ry�r�+����tifier System $20,000 $27,500 $35,000
1���uvork Node $220,000 $260,000 $300,000
$958,775 $1,095,713 $1,232,650
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6.1� P��mcy ]s��.��� a�� c:���ic�������a�s
6.1.2 Assess ar�d Implerner�t Smart City Capa�ilities
Cities may increase operational efficiency by incrementally adopting cutting-edge broadband-
based municipal services such as smart parking meters, smart traffic systems, digital information kiosks,
smart energy-efficient lights, smart security and monitoring systems, among other services. Smart city
services will allow Redding to provide services optimizing human;res�urces and offering more detailed
data on the provision and use of these automated services. Th��ity may assess the feasibility (including
both technical and financial aspects} of implementing and at��t�fiirr�smart city services and establishing
partnerships with Internet service providers and technologj%ct�mpanie��o launch pilot projects in the city.
6.1.2 �ase fo� �ra�c�band lr�f�astr�cturc Deplca���r��s
Local governments should promote and si��i�c�rt expansion of high-cap�eity middle-mile (fiber-
optic backbone) and high-speed last-mile (wireline ant�wireless)-r��tworks to rea���`esidential, business
and industrial broadband customers in bc�th urban and rur��f are�s.The city can reach t��tto public utilities
and/or ISPs to provide ubiquitous relia�l�:�nd high-speed ��`��di�and Internet access. For that purpose,
permit and authorization processes shou�d pr't�v�t�e detailed guic��nce and timely responses for requests
of broadband infrastructure deploym�tt'C� and ;i�stallation o€ ,telecommunications equipment.
Additionally,the city can implement policies�imed to r�t��i�e barrier��rtd streamline the permit process
for broadband infrastructui'� d��lc�yments ant��acility up��ai���. It is ��so important to find a balance
between proper land�as�c�esignati���,based on tl��su���inable��erm�nt of the general plan,and growing
needs of broadband services in the ci�y:
6.1,3 Priari���l��e�s for Br����b��t��;l��r`����uct�r���ployrr�ents
TF�� city may it�et�t�fy priority areas for br��d�iand deployments based on local needs (i.e., for
residenti��,business and ind�istrial serui�es) and/or least attention from ISPs.The city can work together
with public �ntities, non-govet��rnent or�ar�izations, and business associations, among other interested
parties, to identify priority areas ar��! develop:�trategies for addressing broadband needs. In the case of
residential broac�b�nd services, n�eds may include broadband services to enable work-related
applications for telecz�rnmuting and telehealth applications, to high-quality entertainment applications
and Internet-of-things a�r��icatior��,ln the case of business and industrial broadband services, high-speed
and high-quality services�r�e pa�r�mount for local businesses to thrive in the growing digital economy; as
they allow incorporating bro��b�nd Internet-based services and applications into daily processes. These
may include services that provide access to a variety of competitive suppliers regardless of geographical
location, automated logistics and coordination systems across companies' production and distribution
processes, advertising to nationwide and global markets, and providing direct communication from
company to customers,and vice versa,among other areas.The identified priority areas and needs should
include future growth over the next decade.
f��;
6,1.4 Par�rters�ips fc�r �raadband lr�frastruct�are Projects
The City of Redding should encourage the Redding Electric Utility to explore the option to provide
fiber internet service and ISPs to expand broadband infrastructure and services to address the identified
priority areas and needs. The city may develop a comprehensive data set of available broadband-related
city-owned assets (called a broadband asset inventory), and make this information available to the public
through an online map viewer.The city may lease some of these ass�t�to support expansion of broadband
services. The city may also evaluate options for establishing p�r"�r��rships with the REU and ISPs for the
deployment of municipal smart city services and, at th� sai�i� ;time, support the deployment of
infrastructure to provide cutting-edge residential, busine"s�;�nd indt��trial broadband services. The city
may also support deployment of the last-mile elern�r�t (to reach fin�l customers) using high-speed
broadband technologies which may include but are'nc�t limited to fiber rrptics, cable, fixed wireless, 4G
and 5G (small cells) mobile wireless, millimeter-w��r�and television white spa�+��(TVWS), among others,
using terrestrial facilities or unmanned aerial system (UAS) platfc�rms. New de�lc�yments should also
accommodate future expansion of infrastructure bas"�d on grc��±tw�ng broadband �ustomer and speed
demands, changes in technology and f�iti�re utility provid��s: �?"�artnerships may also b� established with
other public utilities and state organit�itic�r�� (i,e., Caltrans). �tc� find efficiencies and synergies when
deploying infrastructure in public rights-o�-vuay{Pi��3W).
6.1.5 Prar�ote �raadb�r����rvices Adop��t�n ta Fost����or�omic��veloprr�en�
The City of Redd�rtg may pra�tc�te and su�pttrt �a�rtnershi��k�etween ISPs and public and private
entities for broadband inF�astructure t��ployments anc� broadband adoption programs in fields including,
but not limited to, educa�ic�n, he��t� care, agri�u�ture, manufacturing, economic and workforce
development� trib�! commurtiti�s� �r�d'�rrierge.ncy setuices. Adoption programs may include digital
literacy tr�ir�i�ig,bro�db�nd servi���=implementati�n as�fool for strategic and everyday work processes,
implerr`�er�t�tion of online:s�ruice c��iabilities accessi#�1e to all residents, and training of a new digital
wo rkforce,;
�a� Pral�c;��s ��r �r��r����i��� ��� Cr��rc��a��T�I��;�����r��ar�i���A��s �r�f��s�r�a�:����
This subsection presents a summary of recommended policies that may guide use of resources and
promote expansion of m�c��rn:k�r`t��dband Internet services. The policies established herein may guide
incorporating smart city cap�bilities in Redding and defining strategies for achieving modern policies and
efficient permit processes for promoting expansion and upgrading of broadband infrastructure and
services in accordance with the city's sustainability and land use policies and regulations, among others.
These policies also promote cooperation between the city's public works, public utilities and ISP's
broadband infrastructure projects to find synergies and achieve efficiencies. These policies are based on
best practices from cities and counties in California (i.e.,City of Morgan Hill50 and County of Santa Cruzs1)
so Tellus Venture Associates, Blum,S., City of Morgan Hi112035 Generat Plan—Telecommunications lnfrastructure
Final Report. 12 September 2016.
http://www.tell usventu re.com/down loads/morga n_hi I I/morgan_h il I_telecommu n ications_i nfrastructu re_fi na I_re
port_12sep2016.pdf
s1 California Broadband Council. (2014,January 15). California Sroadband Council-Overcome local barriers to
deployment and adoption. Retrieved from County of Santa Cruz-Recommended Actions to Expand Broadband:
http://broad bandcou nci I.ca.gov/uploaded Fi(es/Content/News/Sa nta%20Cruz%20Cou nty%206road ba nd%20Updat
e.1-28-2014.pdf
,%�.�
Additionally,some of these recommendations are based on policies and ordinances of other counties and
cities such as the City of San Jose and County and City of San Francisco.
6,2,1 D�g-C�r�ce Policy
Depending on the approach taken regarding dig-once policies, they can help local governments
and utility companies to work together to identify project synergies and to optimize resources for
installation of conduit as part of county or city projects. A white paper by the Columbia
Telecommunications Corporation (CTC) summarizes the followi�g general approaches for dig-once
policiesSZ:
• Requiring an excavator who applies for a permit ir��h� pu��i�,right-of-way to notify utilities and
other relevant entities (e.g., telecom companies �nd ISPs} �k�c�ut the excavation project and
coordinate their participation.
• Requiring an excavator to install empty ct��rz�uit for future use ��l�c� called "shadow conduit"
installation policy). Depending on the poli��t,�he excavator or the jurise�'r�tion may then lease that
excess conduit capacity.
• Undertaking a longer-term process, coordinatin�i�ulti-y���plans with excava�t�rs.
During meetings with local governm�r�'t;afficials in the�r��rthern California region,a common point
of discussion was deciding when laying canduit u+�r�s technically�rtd�inancially feasible without interfering
with timelines and operations on the main ��tcavatit��i�roject. Addt'��sing this topic requires evaluating
several factors and conducting a:feasibility ari�l�€sis cover�n�the follou�i�tg points:
• Technical feas-�bility; maxirnii�n�availabl��r`e�t�t�r�s and"�r���i�ing high-priority areas;
• Developing a te��t�ical speci����tion for th�t�i��once conduit; and
• Developing an eng�r���ring cc�st model to est�r�tate the incremental costs of the dig-once conduit.
6.2,2 D�ri��ci�i�r�nc�iait Speci�����ior�s
Ct�.n�luit specifications allow Icica� governments, utility companies and ISPs to estimate costs of
adding cond+uit in an excavat€t�n projec� in public rights-of-way, and carry out efficient planning and
deployment o��it�er optics on sta�d�rd con�l�i�t deployments.Tnese specifications can be developed and
implemented in }2e�ding and wou��t"achieve even higher efficiencies if adopted in a county or across an
entire region. Conduit specificatior��include requirements and recommendations such as size, type and
material of the conduit;��snduit ir��t�llation and placement in the trench parameters, depth and distance
from utility infrastructure, ua�i�t installation parameters, and minimum distance between vaults or
manholes, among other items.These specifications must be reviewed by public works departments to
assess feasibility and practicality of such installations in a specific geographic area.
6,2,3 Mas��r �ease Agre�mer�t
The purpose of this lease agreement is to reduce processing time and complexity for leasing a
local government's broadband-related assets.A lease agreement allows for the installation,operation and
maintenance of ISPs'telecommunications equipment on city-owned assets.To maximize effectiveness of
Sz Columbia Telecommunications Corporation. (2017,April). ctc technotogy&energy. Retrieved from Technical
Guide to Dig Once Policies: http://www.ctcnet.us/wp-content/uploads/2017/04/CTGWhite-Paper-Dig-Once-
20170414.pdf
�!�.�a
using a master lease agreement, the local government needs an up-to-date inventory of assets, which
may include land, public rights-of-way, conduit, buildings, utility poles, light standards, towers, and any
other property.This inventory must be publicly available for ISPs to review so they can assess the assets
that they might want to lease, based on their broadband deployment planning. The agreement must
include fee structures,agreement duration, renewal terms,access and responsibilities of the parties, and
co-location rights, among other legal requirements.
�.�,�- ��C��1`Yi�3Il� 1��}�}IIC��IOI� �1"OC�SS c�IIC� ��f"tTl{� �E'2S
Streamlining the processes involved in deploying broadband infrastructure allows for faster
expansion of broadband infrastructure and services in the city. Addi�i��ally, charging at-cost permit fees
might contribute to a competitive broadband service pricing in tki�region. In the context of rural northern
California,with its lower population densities,geographically s�ir��d households and,in some cases,harsh
geography, broadband deployment and operation are mare��pensiu�than in urban areas of California.
This results in higher broadband prices and lower speed'�f`fers.Some ISP�in the Northern California region
identified county or city asset leases and permit e���nditures as signifiear��k operating expense drivers.
Some options to address these issues include char�i�r�discretionary planning�i�rmits at cost,or removing
requirements for broadband infrastructure within t�ie�aublic right-of-way to okit�in a discretionary land
use permit.Other identified issues to address indude I��ic�use regut�tions and land us�permits for certain
broadband facilities (i.e. cabinets, racks,in�ireless facilitiesj�iith�r�.��re public right-of-w�y:
�.� ���r�p��=�����.��rr�r��r������c�rr�s �l�r��r���������.h� Cifiy�a���������r�� ��r��r�� Pl�r�
LS, LI�IES� ��� S
Goal T-1: Promcrte implement��ion of muni�ip�� smart city �apabilities and broadband-based
services tt�increase opw€rational e���iency
Goal T-2: Promote e�FFicient ��t�w�nsion of b�t�a�dband infrastructure to provide high-speed
bro��kaand Int�rne,t�er�r'rc�
� ���I �`-1; �r�rr��t"��r�pl�m����tc�n �f €�����p�l Srr��rt �it���p�bi�iti���rrd �r��db��d-��s�d
5����s t�t��r��s��p�rati�ri��: fi�iers�y
a P�li�y 1`d1o1 (���r�c��� ��pl�ym�r�t �f ��icip�l S��rt �it� S�r�ic�s) — Promote
d�ployment of brc��dband irtfrastructure and services to provide broadband-based
mu�ti�ipal smart ci���ervices.
■ �����n �f-���,���Assess potential priority areas for providing smart city services
(�.�#, p�rf�i�� meters, traffic systems, information digital kiosks, lights, security
and i'��snitoring systems).
■ Rc���� 1`m1>142 � Promote including broadband facilities in all public buildings,
major transportation and all public works projects.
o P�li�y�w1a2 (����I�p St�r�d�rds)—Develop standards for preparing future construction
and developments for broadband facilities and services.
■ �ct��r� T`�182a1 — Develop broadband building and wiring standards to support
broadband in new construction and buildings.
■ ��ti�n �"-1m2e2 � Develop smart building requirements for new public,
commercial, residential and industrial projects.
��.��
o P�li�y`T-1a3 {Ass�ss Est�bl�shir��F�rfir��rships f�r��r��ir�g��t Pil��s)—Assess potential
partnerships with ISPs and technology companies for carrying out smart city pilots in
municipal priority areas.
■ A�tio� T'�1.3,1 � Conduct a request for information (RFI) process on smart city
projects addressed to ISPs and technology companies.
■ ��t��n T�1s3o2—Conduct a feasibility study to carry out smart city pilot projects
including potential partners, project cost, business models, among others.
o P�li�� �'�1a� { ��i�� �ani�i��l S�r�ic�s) — Promote and make all municipal services
available online.
■ A�ti���"�1,4a1—Enable all municipal services in the City of Redding portal.
� ���I T°�2A Pr����� Efifici��t E�p�rrsi�r� �f �r��db�rrd ��'Fr�str��t�r� t� Pr��id� Fl��hwSp��d
�r��db��d I�t�rr��t 5�ruic�
o P�li�� T`�2o1 (����1�� � Str�t��i� r���b�r�d �C��� - Develop a strategic plan for
supporting expansion of high-speed brciai�band infrastrc��t�re and services for residential,
anchor institutions, business and ir�c�i�s�rial customers.
■ Acticsn T'�2o1s1 �Work w�t�t {�ublic entities, non-govcri�ment organizations, and
business associations,amor��t�ther interested parties,t�asses priority areas and
needs of residential, business �tid indu��ri�1 customers a�c� community anchor
institutions(educ�tion, public servi��s,.�ublic safety, and healtt�care).
■ Acti�� T'n2a1a2 �- �ased �n the prior�ty areas and needs assessment, develop a
master plan to add�-esst��r� including abje�tives,strategies, partners, resources,
and timelines, among other iri�pc�rtant plar�r��r��elements.
o P�Ei�y T`-2.2� � -�s�c�Pol��y�--�Promote ct�l�aboratioi���t'tong public works departments,
utility cctirrtpani�s ��d Interne�,service .p►`t��id�r� to find project planning synergies to
optim(ze`resources�i�r installati���f�t�r�duit andJ��f�ber optics as part of city projects.
■ �����r�`��2a2a��Develop ar�d implement a local dig-once ordinance by assessing
the�t�tential rple af the city a�td different dig-once policy approaches (i.e., open
trench�s�tadc��nr cr�r�clu�t,excess c�pacity utilization, etc.).
■ ��ti�r�7°�����2—Develc�p sta�dart�s"for deploying conduit and lateral connections.
1"his will al(c�w for cost estirra�'�ions of the addition of conduit in an excavation
project in publ�c�"t�hts-of-way,and efficient planning and deployment of fiber on
standard conduit c��ployments.
o ��#��y 1`-2a3 �Ac���s t� Pi�bl`s��ss��s�r�d ����{��� �st�r l���s�)�Assess feasibility of
all�i�ving ISPs to le�se public assets (pubic rights-of-way, land, buildings, ducts, conduit,
poles,�owers, etc.j f�r deployment, upgrade or expansion of broadband networks.
■ ������ �'��:��3 � Develop an up-to-date inventory of broadband related city-
owr����ssets and community anchor institutions which might include land,public
rights-of-way, conduit, buildings, utility poles, light standards, towers, and any
other property.
■ �cti�� `Tffi243,2 — Make the asset inventory available in geographic information
system (GIS)format and make it publicly available through an online map viewer
and data tables.
■ ��ti�r� 1`-2e3o3 � Develop and implement a master lease aimed to reduce
processing time and complexity for leasing the city's broadband-related assets.
The agreement must include standard terms such as fee structures, agreement
duration, renewal terms, access and responsibilities of the parties, and co-
location rignts, among other legal requirements.
��;
■ Act��� �-2ff3��— Develop specific procedures for granting access and/or leasing
assets in a fair and transparent manner to all interested ISPs.
o P�li��1`-2m� {Str��rni�r�� P�rrr�it��d A�th�ri�afiiar� Pr���ss�s)� Ensure transparent and
fair permit and authorization processes for all ISPs. Streamline the process of deploying
broadband infrastructure to allow faster and timely expansion of broadband
infrastructure and services in the city.
■ Act��� `F�2o�a1 � Review and assess current municipal permit and authorization
application processes for deployment of broadband infrastructure, including
requirements, steps,timelines, and costs associated with the applications.
■ A�ti�n T�2a�o2—Update permit and authorization processes when, based on the
assessment,efficiencies and faster process�s can be achieved.
■ A�#��n T�2,Ao3—Require digital plan files i�+�IS format for all upcoming works in
PROWs and new developments (i:�:, u��lities, developers, contractors and
others).
o P�li�y°T-2,5 (Ass��� P�rfir��rships�t�d i��ir��ss �d�1���r I�#r�str��tc�r� ��pl��rr��r�ts)
�Assess establishing active partner5�ips with ISPs and ot#��r technology companies for
deploying and providing broadbar�d�ervices.
■ A�tw�r� l�m2e5a1 � Assess the;putential role Af the city as ��artner to provide or
expand broadband services.
■ Act��rt `�w2.5a� �- Assess potenti�� bi�si�i�ss models for pr�i�it�ing broadband
services to pri�r��y�r��s under a pu�il�c-private-partnership model.
■ A�t��n 1"�2,Sa3 ��ssess`�c�tential privat�'partners for carrying out broadband
infrastructure deplt�ymentsa Fs�ue requ��ts: for proposals (RFPs) for private
partr�ers and explore rt�gotiating;�car example��he use of public assets or permit
fe�s�i�r shadow condu'tt cleployri��nts{tj�ater or inner ducts).
■ "�t��n �`-24��� — Explor� p�rtr�erships vwri�h state agencies (i.e., Caltrans) to
��h�i�ve inter���ncy coordir�ation.
o P�li�y 7`m2>�,�����l��� ���b�s��f kJ�����r��P�abl���r�fr�str��ta�r��r�j�cfis)�Generate
a database of irpcctrmiiig �ti�k�lic infrastru�ture projects (i.e., water, sewer, roads, paving,
et�:�iri j�ublic righks=c�f-way, irrcli��l�n� lo�a#ion, routes and estimated timelines.
■ ��ti�� T-2e����- Identify anc�,�rack upcoming public infrastructure projects and
�� gener��te a data�i��e.
■ A�ti�r� '���e5,2 — �il�ke the upcoming public infrastructure project database
available ir�geograph�� information system (GIS) format and through an online
map viewer:;
o P�li�� i"��,7 {Pr��s�t� V�lid�fii�rr �f �r��dbar�d S���i�e A��il�bility �r�d Sp��d} �-
Promot� crc�wc# �r�lidation of broadband service availability and speed for residential,
anchor instittatiC�r�s, business and industrial broadband services.
■ A�ti�rt 1°a1�3e1� Promote downloading and using the CalSpeed (or similar state-
sponsored applications)for validating broadband service coverage and speed for
broadband services in the city.
�:�
7e R���r���c�d�t���s t� ��prc��� �rc������� ��r�i�� �d�p���r�
While broadband access is critical, adoption of broadband services is equally as important. Many
community residents in the City of Redding need assistance finding low-cost Internet service, obtaining a
computer and learning pertinent skills to navigate the online world successfully. Efforts to meet these
needs will help the region to combat the inequitable distribution of broadband to rural areas, referred to
as the "digital divide." The digital divide is often more broadly defined as the discrepancy between the
availability of technology among socioeconomic or racial/ethnic groups.The divide limits rural residents'
access to education,workforce training, healthcare and civic engagement.
Providing equipment and training opportunities will all�i�rr users to effectively understand and
learn how broadband can improve their ability to conduct busir���s,excel in school,manage their finances,
participate in telehealth, apply for jobs, receive vocational tr`��nin��nd function effectively in a digital
worid. These skills are critical to educational and care��`success and�re �ccessible to more advantaged
families but can be out of reach for disadvantaged �t��'imunities due to sci��oeconomic challenges (e.g.,
educational background,time impacts of multipl�jc�bs and long commutes). `
Communities and organizations seeking to c�nnect u��rs with equi"pt�ent and access to
curriculums should establish partnerships with existing or��i�iza��t�ns�and programs t����'tablish credibility
and identify best practices for outreach, �rrnplementation, ft��lc��r-through and success.The following are
suggested partners: ������, �
• Affordable housing communities
• Community action��e�i�`t�s
• Center for Healthy�ommt��7ties at CSU,��ric�.��
• Youth developrn��rt agencies
• Workforce and on��s�op job tr�a�ning agenci��
• Multi��er�tice agencies
• R�it�ry�lub a�tt�:c�ther seevi�e organiz��iti�s by ct�mmunity
• �eriior citizen ancl�r��eran's resc�urce and seru#ce centers
• Butt�-Tehama Comr�ur�ity Coll��e, ,
• Local�i�traries
• K-12 schc�c�Js.
Broadband a(s�transformsthe way small businesses operate,communicate with employees,and
interact with customers: �ro�d;�2ind is an important tool for achieving strategic goals, improving
competitiveness and efficien�y, reaching customers, and interacting with vendors. Businesses use
broadband connections to improve efficiency and productivity, both in their internal processes and their
interactions with customers.The capability of and opportunities provide by broadband can translate into
profits and producer surplus to businesses with a portion of the gains being passed to consumers.
Many businesses throughout the region do not have access to the speeds necessary to conduct
day-to-day business. Because of this limited capacity, many smaller businesses are unaware of the growth
potential that is attainable if they had better broadband.Economic development organizations,workforce
agencies and chambers of commerce are examples of groups that can provide training and information
to business owners to increase adoption and plan for growth and sustainability.
���
�e �c�������c�r�
This Master Broadband Plan for the City of Redding aimed to provide the following:
• A comprehensive assessment of the current landscape of fixed broadband services for
residential, business and industrial customers
• Recommendations for expanding and upgrading broadband infrastructure and services
• Recommendations for developing and implementing local government policies to support
broadband infrastructure deployments
• Recommendations for improving broadband adoption through establishing partnerships with
existing organizations and programs.
The recommendations for expanding broadband infra�tr�tcture and upgrading services focus on
the Redding Electric Utility(REU)deploying a high-capacity�t��!f�igh-5j�eed fiber optic network.This report
presents a high level cost assessment of a fiber optic network�n the Redding Downtown Pilot Project Area.
The high level cost assessment for the downtown net�nt���design, after the design and cost optimization,
provided a total cost range from $1.9M to $2.7M �rtc� an average of $2.3M. The cost assessment also
describes further cost optimization (reduction) t�i�� can be achieved by ass�s�ing additional existing
infrastructure that can be used in this fiber networlc deploymenty lt's recomme�►t�ed to have further
discussions with the REU and Redding Public Works staff,�rt�ong.€��her potential praj�ctstakeholders.
The recommendations for deve��rpir��and implemerttrr�g local policies focus on reducing barriers
for new broadband infrastructure deployrments �nd streamlin�n� permit and authorization process in
public rights-of-way.The policies included a clig-onc�`�rt�licy,the dev��t�pment of conduit specifications, a
master lease agreement, a�c� ,the streamlirt'rng of the �pplicatiori.p�^c�cess and permit fees. Other
recommended policies incictt�e��ri�t�rporating srrt�rk city c�.�a�i�l"tti�s in the�Cty of Redding. Finally,a sample
of a General Plan-Tele�c�t�'imunication�Element i�alscr p�esented�s a reference.
The recommendaCi�sns for imprp�ing broadb�r�d adoption included establishing partnerships with
existing organizations and �Irt�grarn� �� ��tablish cr�dibility and identify best practices for outreach,
implementa'�i��n, ft�llcrw-throug� �r�� surce�s, Addific��ally, economic development organizations,
workforce�g�ncies ar�cf�hambers c�f commerc� uue�e examples of groups that can provide training and
informafiit�n to business ovttritrs to incr��ase adoption �nd to plan for growth and sustainability.
Fin�l��,this study also r��cammenc�+�d launching a CaISPEED campaign for residential and business
customers to dci�+,�nload and use t�ris applicat"rc�n"to validate actual broadband service coverage and speeds
provided by ISPs. °
�:�
�e �pp�r�c����s
�.� ,���a�r�c�ix � - F3rca��k��r�c� ��r��c:� ��������u�rN<�
9.1.2 DovvnstreamJUpstream �roadband Sp�eds (�tlbps�
The FCC defines broadband (advanced telecommunicati�rt� capability) primarily in terms of
downstream and upstream speeds as 25 Mbps and 3 Mbps53, r�*�p��tively.The CPUC also uses speed as a
metric to evaluate broadband service coverage, defining urii��rserrr�d areas to areas were broadband is
offered at slower speeds than 6 Mbps downstream and �Mh�ps upstre�r�as4
9.2.1 �upplerr�er�tal Benchmark 11�etrics
The FCC currently does not adopt non-speed performanc�metrics in the�ir broadband progress
reports (although it recognizes the importance of low la#ciicy ar�i��iigh consistency�t�provide advanced
telecomm capability) due to currently 1a��Cing comprehertisiu� data on factors other than speed. The
following are supplemental broadbanc�=bencF��arks, describ�d ;in the FCCs 2016 Broadband Progress
Report, which in the future will help evalua�ing q�t�l��y-of-service�i�,a more comprehensive manner.
L.�:at�=r�r�-Y����
Latency,i�d�f�net��s a measur�rnent of t�e time 'tt takes a data packet to travel through
the network. lt �ignificantly impacts the ��rfc�rmance of interactive, real-time applications,
including Vo1P, anline gaming,uideoconfere�icing, and VPN platforms.
Cc�nsi���°r�c�
�� �c�nsi�t�ncy ha's� fhe potenti�l tt� si�n��icantly impact whether a service delivers
krrc��dband to pr�iuide corts�mers with r����ingful access to interactive advanced services
ir►�luding VoIP, telem�dicine, ��td online education applications using high-quality voice, data,
graphi�s, and video tel�ct�mmunic��ic�ns.
Pc�ck�t Cr���
The Measuring Btciadband America program denotes a packet is lost if the latency
exceeds 3 secr��ds or if tt�� �acket is never received. Packet losses might affect the perceived
quality of phone ca��s ar�rideo conferencing.
s3 Federal Communications Commission (FCC).(2016,1anuary).2016 Broadband Progress Report. Retrieved lune
2017,from https://apps.fcc.gov/edocs_public/attachmatch/FCC-16-6A1.pdf
s4 California Public Utility Commission (CPUC).(2012, May).Forth Annuat DIVCA Report. Retrieved June 2017,from
http://www.cpuc.ca.gov/uploadedFiles/CPUC_Public_Website/Content/Utilities_and_Industries/Communications
_Telecommunications_and_Broadband/Service_Provider_Information/Video_Franchising/4thDIVCAReportforYear
EndingDec2010.pdf
��;�.
$�.2 1�����r�r�lix �3: 8���#cll�-, ���:�r��{- �r�d ����-�tlil� �r����s�r�d ��������a��ic��
This subsection describes current and new broadband technologies used by ISPs for middle-,
second- and last-mile broadband networks. For this report, the definitions of middle-, second- and last-
mile network segments follow the basic network structure from the FCC's Broadband Availability Gap
Paperss,shown in Figure 31. Based on an initial assessment of last-mile broadband networks and providers
in the City of Redding and regional Internet fiber-optic backbones and providers, it is assumed that most
broadband networks in the City of Redding consists only of middle- and last-mile network segments;
therefore not including the second-mile network segment.The seccirt�-rnile segment is mostly used in the
case of fixed wireless broadband services, which aggregate t#A�f�ic from several towers deployed in
cascade configuration and sparsely located.
The middle-mile segment provides transport ant�transmission c��data communications from an
aggregation point (i.e., central office, cable headend ar�nrireless switching���tion)to an Internet point of
presence. Last-mile segment provides transport and transmission of dat� communications from a
broadband modem provided by a local ISP to the fi��t aggregation point in t�te'n�twork (i.e., remote
terminal,wireless tower, or HFC node}.
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er��ati�s in�z� 9r�phically�l�v� {wcar�dwide}mar�rr�r
;� Se�t �#g�te�«��.�Icase�t p�eir�a� int b�:�een brea�dt�a�ad gsrzsv'sd�r arid�ubl'sc Ir�ters�et��ir a givere c�ca�um�r cann�ctresra
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ma€aag�d n�i+nrarrk(e.g.L�SL mod�rn;c��s9�mac�ern,s�t�l�ete ra�eral�rra,tag��i�t n��wvricia�g t� irral({�P3T�,e�c.�
� �ca�ssu�ner si�v'sc�,�ere�ss�m�e d�vi���rsnecE�:d tea mcs�lerr�tlarc�ssgh ia�t�et��!�rire t�r�i-F�{fi�m��s�twsaikine��,inc�aar�ir�z�
har�iv�ar�and fi�war�us�d��a access Che I€�terese�and pr����s c€rratent�c�a�terrts�r-ri�a�rr�c��d�
�ir�cr��.�2. �crs�c rr�tusa�rk s��crctaare frc�rr� FC`C"��"h��rr��c�b�r�c�Avc�Pl�bility�cr��'�a,���
Commonly deployed middle-mile transport technologies include fiber optics, microwaves and
satellite links. In 2010, the majority of central offices (approximately 95%) and nearly all cable nodes
connected to the Internet through fiber-optic links. Once the transport requirement reaches 155 Mbps
ss Federal Communications Commission (FCC).(2010,April). The Broadband Availability Gap-OBI Technica!Paper
N0.2. Retrieved from https://transition.fcc.gov/national-broadband-plan/broadband-availability-gap-paper.pdf
��,
and above, the only effective transport mode is using a fiber-optic-based transmission backbone.
Microwave and other terrestrial wireless technologies are well suited only when aggregated data is of a
few hundred Mbps and relatively short middle-mile runs of S to 25 miles. However, microwave backhaul
may be a critical transport component in the second-mile segment in the case of fixed wireless networks.
The following subsections describe most current technologies used for last-mile networks
including wireline, wireless, and mobile technologies. It also describes new and innovative technologies,
induding some that are still in testing stage and are not commercia[1y�vailable yet.
9.2a1 l�ttirel�ne Broadband
Wireline broadband includes digital subscriber I�ne (bSL), cab��.modem and fiber-to-the-home.
These technologies are primarily deployed in dense t�rk��n areas. Deployrrt�rit and coverage limitations of
these technologies indude access to right-of-way�r�t�high costs of rolling under�round lines.
Digita)Subscriber Line(DSL)
DS� is defined as broadband seruice provided ov�r tr��J��t��nal copper telephc�rte lines (without
disrupting regular telephone calis)already i�st�lled to homes a�id businesses.According to the FCC's 2016
Broadband Progress Report56,this technc�lcsgy��;'��e second most common service type with roughly 29%
of the fixed broadband market. DSL offers tih�follov�in�speedss':
a) DSL over loops of�:2,E1C�C},feet: Uses A[�5L2/ADSL�+ti%provide �ates of 6 Mbps downstream and
1 Mbps upstre�rn, �"o pri�irit�e faster s�e�ds, t7��: opera�t�r� can bond loops (over 30 Mbps if
sufficient number�of copper lci�ps are avai�ablc)and continu�to shorten loop lengths (see loops
of 5,000 feet or 3,t3t3(l feet).
b) DSL over loops of 5;t�t�t�or 3,t�C��f�et.Typicall�r uses VDSL2 to provide 35 Mbps downstream and
6 Mb��u�st��am over���t�t�'foot li�c�ps, and 2£�1�/lbps downstream and 4 Mbps upstream over
5;�t(�Cl foot looj�. � �
Lr���tions of this ��c�nology ��r�`clude speed sensitivity to distance to central offices, not
expanding of tr�ditional telepho:r��lines so t�r�DS�footprint is not growing,and not providing higher date
rates for growing speed demands t��fSOMbps, 100Mbps and higher.
Cable Modem
Uses coaxial cab(�� alre�i�y installed by cable television operators to deliver video and sound.
Cable modem can provide at l��st 1.5 Mbps and up to tens of Mbps and a few Gbps (cable networks
upgraded to DOCSIS 3.1) downstream58, and a few Mbps to 1 Gbps upstream. This technology provides
the most common fixed broadband service in the United States accounting for around 59% of all fixed
broadband customers. Benefits of this technology include large coverage areas for consistent fast speeds
with low packet loss and latency. Limitations include low numbers of or single cable broadband providers
in most areas.
s6 Federal Communications Commission (FCC).(2016,1anuary).2016 Broadband Progress Report. Retrieved lune
2017,from https://apps.fcc.gov/edocs_public/attachmatch/FCC-16-6A1.pdf
57 Federal Communications Commission (FCC).(2010,April). The Broadband Availability Gap-OBI Technical Paper
N0.1. Retrieved from https://transition.fcc.gov/national-broadband-plan/broadband-availability-gap-paper.pdf
58 Federal Communications Commission (FCC).(2010). National Broadband Plan. Retrieved from FCC-National
Broadband Plan: https://www.fcc.gov/general/national-broadband-plan
�a��
Fiber Optics
Fiber-optic technology converts electrical signals carrying data to light and sends the light through
transparent glass fibers of a few microns. Fiber-based service can provide downstream speeds of around
20 Mbps to speeds around a few Gbps and upstream speed of around 5 Mbps to a few hundred Mbps.
There are three basic types of FTTP deployments: point-to-point(P2P)networks,active Ethernet networks
and passive optical networks (PON). PON makes up more than 94%c�f the residentia) FTTP (fiber-to-the-
premises) deployments in the United States59. Benefits of fiber inclut�� proving consistently high speeds
and transmitting at large distances without signal degradationx"Lirnitations include requirement of new
infrastructure, in comparison to DSL and cable modem t��Crig alt�e�dy deployed telephone and cable
television infrastructure.
9.2.2 Fixed Wireless �roadband
Fixed wireless broadband indudes Wi-Fi, tNi1�11AX and �TE. These te��it�talogies are primarily
deployed in areas were wireline technologies do n�t �tave c�rmplete coverage sucn as rural areas.
Deployment and coverage limitations ti��hese technologic��cc�rn�from obstructions {�,e. terrain and/or
vegetation) between the antenna at the�us�t�rner premises��td:the access point or base station located
at a pole or tower.These obstructions car�prev�nt t�r disrupt cornr�unications in fixed wireless radio links
by causing attenuation, scattering, diffractitsn and abs�irj�tion of el�ctrt�magnetic waves.
Wi-Fi
Wi-Fi (IEEE 8C��w9:1 Standard�,operates in �r►�icensed bar�ds'(2.4 GHz and 5.8 GHz) and was
originally designed for wirele�s local ar��networks(�tV�.ANs)to enable communication among devices and
stations in a range from te�� to � f�w„hundred f��t, however, in the last few years, equipment
manufactur��.d�velc�ped Wi-Fi #��se� iong ���tge solu�i�ns reaching several miles coverage. Wi-Fi can
provide ��gr�gated da����tes of up to 600 M6ps�'�llovving it to provide downstream speeds of a fiew
Mbps tc�:�ens of Mbps. Ben�*fits of V\/i-�i indude lovu eost of access points (APs) and customer premise
equipment {�PEs) due to la���;�econorr���s of scale achieved by this technology. �imitations include
potential int�r`f�rence leading t�a signal degradation due to operating in a widely used unlicensed
spectrum.
WiMAX
WiMAX (IEEE 802.�.6�fi��rclard} emerged as a high-capacity and long-range technology (up to 30
miles) for the provision of fixed'and mobile broadband services for wireless metropolitan area networks
(WMAN) and operates using licensed and the unlicensed bands. WiMAX was one of the technologies
chosen by the ITU for providing IMT-Advanced services or 4G mobile services61. It achieves aggregated
data rates up to 350 Mbps allowing it to provide speeds up to tens of Mbps downstream to customers.
Limitations include low varieties of base stations (BSs) and CPEs due to most mobile operators and
59 Federal Communications Commission(FCC). (2010,April). The Broadband Availability Gap-OBI Technical Paper
N0.1. Retrieved from https://transition.fcc.gov/national-broadband-plan/broadband-availability-gap-paper.pdf
6o Institute of Electrical and Electronics Engineers(IEEE).(n.d.). IEEE Standards Association. (IEEE) Retrieved from
http://standards.ieee.org/
61 Institute of Electrical and Electronic Engineers(IEEE).(n.d.). IEEE 802.16"":Broadband Wireless Metropolitan
Area Networks(MANs). (IEEE Standards Association) Retrieved from
http://sta nda rds.ieee.org/about/get/802/802.16.htm I
��
equipment manufactures shifting to LTE due to larger worldwide adoption of this technology for 4G
mobile services.
LTE
Long-Term Evolution (LTE)was designed by the 3rd Generation Partnership Project(3GPP)group
for mobile communications in densely populated areas (see mobile broadband). �TE has also been used
to provide fixed broadband services in rural areas. LTE can achieve aggregated data rates up to 300 Mbps
allowing it to provide speeds up to tens of Mbps downstream to customers. For benefits and limitations
see LTE in the Mobile subsection.
9.�03 Mobile Broadbar�d
Mobile broadband indudes packet-based data t�chnologi�s such as 2G (GPRS, EDGE and
CDMA2000), 3G (WCDMA, HSDPA, HSPA and CDMPc��(I�3 EV-DO), and 4G ��TE and WiMAX). Although
evolution of these technologies has made mobile bi'�i�dband services much mc�re versatile and useful to
consumers by providing mobility and portability,'t�ere are important differ�r��es between mobile and
fixed broadband. Mobile transmissions, due to using vdireless spe�trum, operat� under environmental
factors that can impact the consistency of coverage ��id s��ec�s. These technolt���es are primarily
deployed in densely populated urban at'e�s.and in a smalC�r sca�� in rural areas. Coverage limitations of
mobile broadband come from obstructi�n,5(i.�a terrain andjorv�getation) between base stations located
at towers and mobile devices, and availabi{i��r and�cc�ss to licen��d spectrum.
Legacy Technologies(2G and�G)
These mobile fe��nologies,include pacl�ct�,ba�ed data s�r�ri��s that evolved from the GSM and
CDMA mobile technol�i�i�s. For GSIVi, these tech�ic�lc�gies include: �PRS and EDGE (100-130kbps data
rates), UMTS or WDCMA ��2Q-320kb�s), HSPA (seve�al Mbps). For CDMA these technologies include:
CDMA2000 (3Q71G8PS), CDMA�f�QQ ��/�C}C�:�3.1 Mbps}: Limitations of these legacy technologies include
low speeds in �cart��r�rison to' n�w generatitari mobi�e broadband and wireline and fixed wireless
broadb�t�i�;� �
4G Long-Ter`r�Evolution(LTE)
Long-Terrn Evolution (LTE��rras desigr��tl by the 3rd Generation Partnership Project(3GPP)group
for mobile commur���ations in dens�ly populated areas and can achieve aggregated data rates up to 300
Mbps allowing to prc��ri�le speeds u�itn tens of Mbps downstream and a few Mbps upstream to customers.
The 3GPP group has rele�sed se��ra1 versions of the LTE standard, from the first release (Rel-8 in 2008)
to LTE-Advanced (Rel-11)�'�. .�.T� was one of tne tecnnologies chosen by the ITU for providing IMT-
Advanced services or 4G mobiie services, and operates in the same bands as its predecessor GSM, in
addition to other bands. Most common LTE bands range from 700 MHz to 3.8 GHz. Benefits of this
technology include data rates in some cases comparable to wireline and fixed wireless broadband services
and providing flexible network design allowing combination of macro- and micro- cell sites to cover
demand needs of specific geographical areas. Limitations include purchasing new devices that support
LTE service and plans that might include data caps.
4G WiMAX
62 3rd Generation Partnership Project(3GPP).3GPP A G(obal Initiative. (3rd Generation Partnership Project(3GPP))
Retrieved from http://www.3gpp.org/technologies/keywords-acronyms/98-Ite
���}
WiMAX was one of the technologies chosen by the ITU for providing IMT-Advanced services or
4G mobile services63. It achieves aggregated data rates up to 350 Mbps allowing to provide speeds up to
tens of Mbps downstream to customers. �imitations include low varieties of base stations(BSs) and
CPEs due to most mobile operators and equipment manufactures shifting to LTE due to larger
worldwide adoption of this technology for 4G mobile services.
�,2.4 I�ew Techr�ologies for Middle- and �ast-Mile
Millimeter-wave
Technology operating in millimeter waves i��urrently used for Fiig}�-speed backhauling(point
to point) to connect cell sites or access points �tr provide high-speed Ir���rnet64. There is assigned
unlicensed and licensed spectrum for millimeter-vtiw��re technology. The unlic�nsed millimeter-wave
spectrum operates in the 60 GHz band (57-66 GHz), ci�'ferin�:7`CHz of bandwid��; and the licensed
millimeter-wave operates in the 71-7fi �iHz and 81-86 �I�z,:c�ffering bandwidth frt�m 10 to 80 MHz,
although for shorter distances. Equiprn�rit inrt�rking on the���ands is affected by heavy atmospheric
absorption, which limits range of oper�t'tt�ns bu# also unwant�t� interference. Millimeter-wave can
achieve up to 2.5 Gbps for a mile point to�ic�int radii�lir�k.
Unmanned Aircrafts
The initiative o�i��ing solar-�c��vered unmt��tr��d aerial vel�icles(UAVs),also known as drones,
flying at 12 miles above th�ground �ti� provide Internet service in unserved areas is currently led by
Google and F�acebook. In April 2�3�4, C�ogle acqc�i"r�d Titan Aerospace and started the Project
SkyBendeir; urr�iic�i �s'ctarrently te�`tiing dror��� ia�ing millimeter wave technology to transmit at data
rates �iig�ter than 4G L7E65. In March 201�, �acebook acquired Ascenta, UK-based drone
manufac�urer, and is alsa currently t�sting solar-powered drones using free space optics (high-
powered la��r,beams) to ach"t��re high t��ta rate transmissions66. It is likely that both Google and
Facebook will us�these narrow ki��m and high-frequency technologies (millimeter-wave and lasers)
as high-capacity {��cl�hauls and c��lier mobile and fixed wireless technologies (mentioned above) to
connect final custorn�rs. The id�� �f using unmanned aerial vehicles (UAVs) or drones to deploy a
backhaul network is inrtt�uativ��r�d promising, but it is still in a design and testing stage with no
current commercial deployr�i�ri�s.
Unmanned Super-Pressure Balloons
Delivering broadband services using super-pressure balloans travelling in the stratosphere is
a Google X initiative known as the Project Loon.This project will allow customers in rural and remote
63 Institute of Electrical and Electronic Engineers(IEEE).IEEE 802.16T"':Broadband Wireless Metropolitan Area
Networks(MANsJ. (IEEE Standards Association) Retrieved from
http://sta nda rds.ieee.org/about/get/802/802.16.htm(
64 Dehos,C.,Gonzalez,l., De Domenico,A., Ktenas, D.,& Dussopt, L (2014). Millimeter-Wave Access and
Backhauling:The Solution to the Exponential Data Traffic increase in 5G Mobile Communications Systems?IEEE
Communications Magazine,88--95.
6s Heilman, D. (2016, February 1). Google's SkyBender Drones Could DeliverSG lnternet. (Sci-Tech Today) Retrieved
June 2017,from http://www.sci-tech-today.com/story.xhtml?story_id=13100C11NE20
66 Miners,Z.(2015,1u1y 30). Meet Aquila, Facebook's unmanned Internet drone. (PCWorld) Retrieved June 2017,
from http://www.pcworld.com/article/2955212/software-social/facebook-aims-to-launch-unmanned-drone-by-
yearend.html
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areas to connect to the balloons network (in the stratosphere 12 miles above the ground) and then
to the Internet67. In the stratosphere, twice as high as airplanes and the weather, there are many
layers of steady winds which vary in direction and speed. The balloons will travel to the needed
location or route by rising or descending into a layer of wind blowing in the desired direction. To
provide the broadband service, the signal from customer's devices connect to a balloon network in
the stratosphere, and then down to the global Internet on Earth, just as satellite service works at
much higher latitudes, using free space optical (lasers) for the backhaul and radio frequency
equipment for the access radio links. For the access radio links,��t�Loon project has conducted tests
in rural areas in New Zealand, California and Brazil using both�i�iticensed ISM and licensed LTE bands.
In 2014,the Loon project expressed their interest in usin�L�E k���ds and working in partnership with
operators and telecommunications companies due to ��e poterttial to achieve universal access
targets mandated by countries in a cost-effectiu� rnanner in th� s�ort-term, while fiber-optic
backbone and terrestrial networks are being depl�y�d in the long-term.
Gigabit Satellite
This type of broadband technQlogy is current�y c�'�fe�-�d k�y the company U�k�68 which stands
for "Other 3 Billion°. This company ��r��tides satellite corn�t�i�ication backhaul service offering low
latency (less than 150ms) and data �`ate� cc�mparable �c� fiber-optic technology. 036 has a
constellation of 12 satellites with a gro�it��l perii�c� c�f 360 m'r�iitt�s using the Ka-band providing a
coverage of 45 degrees northfsouth latitucf�s.The sat�llites provit�e �:fl beams per region (7 regions)
totaling 70 remote beam��ii�th�entire cons��llation. It�����n�y is les�than 150 milliseconds due to
the use of Medium E�rth�rbit (IVIE�� satellites.�he..rrtaximur�r��i�ilable aggregated throughput per
beam (over a single trart��c�nder) is�.:�Gbps(80t3 I�ltbps x 2) and each beam provides coverage of 400
miles.
Television t�hit+�Sp�ces�TV WF��t��Spaces)
Wh't�e spaces can bc� defined �s part of the spectrum, available for a radio communication
applicatian�t a given time in��iven ge�igraphical area on a non-interfering/non-protected basis with
regard to prir��ry and other sertiri�es.The�White Spaces technology(IEEE 802.11af and IEEE 802.22
Standards) opera�es in wnite spa�es of the broadcast television spectrum (from 54 MHz to 862
MHz)69. It was desi�r��d for wirel�s�local area networks (WLANs) with a range up to a few miles and
wireless regional area�ietworks�WRANs)with a range up to several tens of miles.TVWS can achieve
aggregated data rates of�1`��+}r t��ts of Mbps allowing it to provide downstream speeds of a few Mbps.
The TVWS technology has fih� advantage of enhanced propagation features due to the use of
frequencies bellow 1 GHz allowing for the penetration of walls, vegetation, moderate hills and other
obstacles.
67 X(Google X)-Project Loon.Project Loon. (X(Google X)) Retrieved from https://x.companyJloon/
68 03b Networks.03b Networks-Our Technology. Retrieved June 2017,from
https://www.o3bnetworks.com/announcement.php
69 Pietrosemoli, E.,&Zennaro, M. (2013).TV White Spaces-A pragmatic Approach. ICTP-The Abdus Salam
International Centre forTheoretical Physics.
��4:�
�t�. �I�s.��ry
25/3 Mbps: An Internet connection with a download speed of 25 megabits per second and an upload
speed of 3 megabit per second.Also,the speed at which the FCC considers an Internet connection to be
broadband.
6/1 Mbps: An Internet connection with a download speed of 6 megabits per second and an upload
speed of 1 megabit per second.Also,the speed at which the State of California considers an Internet
connection to be broadband.
ADSL2+: The next step up from standard ADSL that generally prouides a faster Internet speeds.
Providers of ADSL2+in Redding indude AT&T and PAETEC CoCrtrTtU`r�ications.
Asymmetric DSL: A DSL line where the upload speed is different from the download speed. Usually the
download speed is much greater. Providers of asymm�tri�DS�include AT�T and Earthlink.
Backbone: A high-speed line or series of connections that forms a major pathway within a network.
Bandwidth: The capacity for data transfer of an electronic communications system.
bps: A measurement of how fast data is moved from one place to another via a network or Internet
connection.
Broadband: High-speed Internet access that is always on and faster than the traditional dial-up access.
Broadband Assets: Gc��c��'r►ment c�t�uned assets that rn�y�ss���t`r��he deployment of broadband
infrastructure. Exampi�s�nclude tow�rs or tall buildi�gs'that may be�rsed to deploy wireless
infrastructure and rights-c��-�ray to ruin i►ndergrount���anduit and fiber-optic cables.
Cable Modem t�t�CSIS (Data:l�u�r C�#�Ie 5�rvice Int�rface Specification): An international
telecommunications standard that permits the addition of hign-bandwidth data transfer to an
existing���le TV system.�� �
Cloud computing: The use of a network of remote servers hosted on the Internet to store, manage,
and process data. An alternative to tne established practice of storing and processing data on a
dedicated server or computing machine.
Coverage: The geograp�ti��l areas in which an ISP provides Internet connections.
CPUC: The California Public Utilrties Commission.The CPUC regulates services and utilities, protects
consumers, safeguards the environment, and assures Californians' access to safe and reliable utility
infrastructure and services.The essential services regulated include electric, natural gas,
telecommunications,water, railroad, rail transit, and passenger transportation companies.
Digital Divide: A measurement of technological equality in access to and adoption of broadband that
provides metrics by census tract and county.
�x�..
Download: An act or instance of transferring something(such as data or files)from a usually large
computer to the memory of another device (such as a smaller computer) over a network or Internet
connection.
Downstream: Data sent from a network service provider to a customer via the Internet.
DS�(Digital Subscriber �ine): A category of technologies that transmit digital data over telephone
(ines. Providers of DSL include AT&T, PAETEC Communications, and Earthlink.
FCC: The Federal Communications Commission.The Federal Communications Commission regulates
interstate and international communications by radio,television,wir�,satellite, and cable in all 50
states,the District of Columbia and U.S.territories. An independ�r�t=�T.S.government agency overseen
by Congress,the Commission is the federal agency responsib#�fc��implementing and enforcing
America's communications law and regulations.
Fiber-optic cable: A type of cable used for very high speed data transmission.
Fiber-to-the-premises/fiber-to-the-home (Fl"i`P,�FTTH):The installation and use of optical fiber
from a central point directly to individual buildings such as residences, apartment buildings and
businesses to provide high-speed Internet access.
Fixed broadband: High-speed data tran�nnis�it�n to homes and�usinesses using technologies such as
T1,cable, DS�and FiOS.The term exdudes thQ ceit�alar data marke�.
Fixed wireless: The operation of wireless communication devices or systems used to connect two fixed
locations with a radio or other wireless link.
Gbps (gigabits per second): A measi�t`ement, in t�rms of gigabits, of how fast data is moved from one
place to another via a netwc�r�t�r Int�t'r���connection:�1 gigabit equals 1,000 megabits.
ILEC(Incc►�kl+e�t'���oc��l��xchang�+�arrier): A��ca���telep�one company which held the regional
monop�il}r:on landline ser�ic�befor�th�market wa�t��ened to competitive local exchange carriers, or
the corpara��successor of su��a firm.
Internet-of-thit�gs; The intercor�r��ction via the Internet of computing devices embedded in everyday
objects, enabling tli��rrm to send ancl r`eceive data.
IPTV:The delivery of television ct��i�ent over Internet networks.
ISP(Internet Service Provid�r`): An institution/business that provides access to the Internet. Examples
of ISPs include AT&T,Comcast, Earthlink, etc.
Kbps (kilobits per second): A measurement, in terms of kilobits, of how fast data is moved from one
place to another via a network or Internet connection.
�ast-mile: The last segment of the connection between a communication provider(e.g.,telephone
company central office, ISP) and the customer(usually residential, but sometimes commercial).
<:��
�atency: A measurement of the time it takes a data packet to travel through the network. It
significantly impacts the performance of interactive, real-time applications, including VoIP, online
gaming,videoconferencing, and VPN platforms.
�ong-Term Evolution (�TE): A fourth generation (4G) mobile communications standard for the high-
speed wireless Internet connection of mobile devices(smartphones,tablets, etc.)
Machine to machine: Direct communication between devices through network or Internet
connections.
Mbps (megabits per second):A measurement, in terms of inegabits, of how fast data is moved from
one place to another via a network or Internet connection.A megabit equals 1,000 kilobits.
Middle-mile: The network infrastructure that connects las�rn�ile r�etu+rorks to other network service
providers, major telecommunications carriers,and the gt-eat�r lnterne�:
No service: According to the CPUC standard, areas�rhere broadband is o�F�r�d at slower speeds than 6
Mbps downstream and 1 Mbps upstream.
OFDM (Orthogonal Frequency Division Multiplex):A:'fc�rm v��r�nsmission tha�t�ses a large number
of close spaced carriers that are modulat�d with low rate d�ta:
P2P:A network allowing two or more computers to communicate directly without having to use a
router or other centralized server.
Packet I.oss: The Measu�i�i�B�rt�at�band Ameri��program�let����s a packet as lost if the latency
exceeds 3 seconds or i�th�e packet i�rt�ver receivee(:Pacicet losses rriight affect the perceived quality of
phone calls or video con�et'�ncing.
Point of pr�s�rt�e:An access point to the Internet and a physical location that houses servers, routers,
etc. Also, an interconnection point within fiber-optic networks.
Public �ig�tt of Way(PRO�N�.The right to cross property to go to and from another parcel.The right
of way may be a specific grant of land or an "easement,°which is a right to pass across another's land.
The mere right to cross without a specific description is a "floating" easement. Some rights of way are
for limited use such as repair of electric lines or for deliveries to the back door of a store.
Served: According to the;�PUC stant�ard, areas where broadband is offered at speeds of at least 6 Mbps
downstream and 1 Mbps up��r��rr�:According to the FCC standard, areas where broadband is offered at
speeds of at least 25 Mbps dovtwt�stream and 3 Mbps upstream.
Telecommuting: Working from home through the use of the Internet, email, and by telephone.
Telemedicine:The use of telecommunication and information technology to provide clinical health
care from a distance.
Throughput: How much stuff you can send through a connection.Throughput is what people usually
mean when they use the term "bandwidth" and it is usually measured in bits-per-second (bps)A full
� �
page of English text is about 16,000 bits.A common configuration of DS�allows downloads at speeds of
up to 1.544 megabits(not megabytes) per second, and uploads at speeds of 128 kilobits per second.
TVWS (TV White Space): A form of wireless technology that takes advantage of unused TV channels
between the active ones in the VHF and UHF spectrum to transmit data.
Unserved: According to the FCC standard, areas where broadband is offered at slower speeds than 25
Mbps downstream and 3 Mbps upstream.
Upload:To transfer(something, such as data or files)from a computer or other digital device to the
memory of another device (such as a larger or remote computerj over a network or Internet connection.
Upstream: Data transferred from a customer to a server via t��ltiternet.
USDA: The United States Department of Agriculture.
VDSL(Very-high-bit-rate digital subscriber line}:A digital subscriber lir��technology that provides
faster data transmission than asymmetric digital s�b�criber line. AT&T is the c�nly VDSL provider in
Redding.
Video on demand (VoD): A system in which viewers choose their own filmed entertainment, by
means of a PC or interactive N system,from a wide selection.
VoIP technology: A technology that allow��ou t�tri�l�e voice cal��using a broadband Internet
connection instead of a regular(or analog) phc�ne line. ':
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