A County-wide Broadband Proposal | Technical Documents | About the author
Pre-engineering survey  (rtf format)
County-wide wireless broadband network
Audrain County
11/17/02
Overview
General theory points
Cooperatives are best finance base to deliver such a utility
Fixed wireless with fiber-optics is best solution.
Specific Install steps
ROI workout
Total Cost of Operation factors
Equipment Cost estimates
Overview
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The essence of this is to approach it from a public rural utility basis. This is a first as far as been researched. Most approaches to this have been on a for-profit basis. Our best business model is actually the co-op. By using a co-op model, particularly in aligning our efforts with the existing rural electric cooperatives, we can build on a county-wide or cooperative-wide basis and so develop a model that can be used to roll out broadband across the entire state.

While the telecommunications section is currently in a temporary slump, this won't last much beyond this year, by all predictions. If there is a profit to be made, businesses will find a way to get there. Right now we have the advantage, since the hardware selected shows a remarkably fast return on investment (ROI), which can be used to expand the network simply.

Our main competition are in different fields with different products. Satellite vendors are currently after the TV-cable crowd; although they have capability to offer Internet access, the initial cost is way too high (around $5 - $800 to start) to build this network out at any speed. The existing telephone companies and Internet providers are majorily using dial-up, which wasn’t actually designed for efficient Internet access. Larger towns and cities are getting DSL, which isn’t available in rural areas due to the need for repeaters to amplify the signals. What we offer is cheap, efficient connection with the capability for roaming access, useful to our farmers, sales personnel, government inspectors and law enforcement personnel.

This roll-out, done right, will bring more stability to our rural economy and a growing technical base of jobs that will generate revenue that will be returned to the county. Additional jobs will be created by this than just what we are building with this network. For instance, our ATC will need to expand its teaching force, since one-year certificates and two-year technical degrees will be in high-demand to train and retrain workers in related industries. Broadband will also enable businesses to form that we don';t even conceive of currently. 5.5 jobs will be created for every job we require to build and maintain this network.

General theory points
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1. As covered in accompanying papers, readily available broadband is vital to expanding rural economies in this Information Age.
2. Once built as a utility,
Other services can be leased on top of the network
a.Internet access is a primary one
b.Virtual Private Networks, and broadband on demand for businesses
c.Homeland Security – enabling large files to be transmitted and shared from any remote point in the county, as well as enabling fast reports from any resident direct to the sheriff’s department, making their job more efficient and effective.
d.Entertainment such as movie rental is possible
e.Improved telephone services
3.Key point is to make this available to all residents, not just a few who can afford it.
a.Survey price continues to be about $20
b.While initial offering might need to be as high as $40 - $50, once the customer premises equipment (CPE) and antennas are paid off, there is no reason it couldn’t be dropped to that level. This would bring customers who currently would stick to their inefficient dial-up, which most electric cooperative customers already have, but use little.
c.The trick will be in working out how to make this readily available to all residences at low cost. It will work best where we have maximal involvement of the community. (Eventually, this will become as common as any other utility. We may as well start now.)
Cooperatives are best finance base to deliver such a utility
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§ Electric cooperatives have existing roll-out of fiber-optics which needs faster ROI for its expense
§ These also have existing customer base of member-owners
§  They also are already in coordination state-wide.
§  Local ownership ensures monies are reinvested locally
§  Businesses have worked to grab the populated areas for faster ROI, while neglecting true rural areas.
§  Frequently, power poles are nearly the tallest point in residential locations; extending these up with a light mast for the antenna would clear most tree obstructions.
Fixed wireless with fiber-optics is best solution.
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1.Antennas must be robust, yet upgradeable
Chosen: Alvarion, Western Multiplex/Proxim currently the industry leaders as very robust and history of providing firmware upgrades.
2. Must have fast ROI as equipment (particularly CPE’s ) is always competitively upgrading.
§  Fast ROI would defray costs of existing fiber roll-outs and enable expansion of current fiber network
§  Wireless network would assist in redundancy data transfer issues for current substations.
§  Current proposal has leasing CPE’s for rural residents, with the CPE’s as collateral. Service Provider lease agreements is sufficient to pay for CPE lease costs.
§  ROI for ISP with a single tower can be achieved in one to two years with 50 subscribers.
3.Chief service is Homeland Security, which requires the interaction of various municipalities and residential input as well.
Specific Install steps
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Step 1: Link current sub-stations starting with existing JJ station which has fiber
§  Direct point-to-point from JJ to NN tower, out from both of these to nearby substations as point to point.
§  Point to multi-point to capture subscribers in Mexico and Thompson, plus parts of 15, FF and JJ. Also reached are some rural industries along 22 and 15 can become subscribers.
§  ROI requires an ISP come on board from the outset
§  Internet Service Provider(s) could set T-1's at each antenna site to get their Point of Presence (POP).
Step 2: Two more antenna sites which link to substation on Scott’s Corner
§  Enables Rush Hill to have broadband access. May require an actual tower built - requires site survey for existing structure
§  Point to point via Rush Hill site to Scott’s Corner sub-station
§  Connection between Mexico schools systems and Community R-6
§  Testing possible of mobile units (Homeland Security) along I-54. (MODOT included, since they have office at top of JJ.)
Step 3: Two more antennas which reach Farber, Vandalia and Laddonia.
§  These towns brought broadband access, so more ROI for antenna sites via residential subscribers.
§  Allows further testing of mobile wireless on virtually all of I-54 and nearby county roads
§  Enables these towns to link via broadband to Mexico and start sharing resources with schools, libraries, other municipal services.
Step 4: Four more antennas which cover the rest of key residential areas along 15, 22 and JJ
§  More ROI from subscribers
§  Further testing of mobile wireless through the bulk of the major interstate, state and county blacktop roads.
Step 5: Rest of county is covered, since by this time ROI on a monthly basis should be sufficient to invest in the remainder of the network
§  Benton City and Martinsburg are covered (as well as Centralia and businesses remote from city and town boundaries.).
§  All rural roads are covered and all rural residents.
§  Expansion of Homeland security to enable County Fire Department Volunteers and expand building, health inspector capabilities as well as sheriff and cross-coordination between municipality police units.
§  Testing of mobile wireless is extended to major agricultural areas north and west of town, and remote businesses.
ROI workout
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The key point on ROI is to see how others have failed to roll out wireless in these areas. Where businesses have consistently failed is to put up a bunch of towers without the subscribers. The whole key to this scene, barring some massive funding being made available, will be to make it pay as it goes. Internet Service Providers must be brought on early, under the auspice that they are being provided true broadband for the current cost they are paying for dial-up. It is through their leases, plus any other service providers that are brought on board, that this system is paid for. (If it is possible to fund the entire county installation on a grant or extremely low rate guaranteed loan, we would then still proceed carefully to make this system pay as it is installed. More than likely, the same install pattern would proceed as outlined.)
1. Return on investment in one to two years is proven with a single ISP, a single antenna and a single T-1 with 50 subscribers.
2. We provide the broadband as a utility and so lease access to service providers, such as the ISP’s and others (Snell Tel-Com,HunTel)
This keeps CPE native to residential install, so it wouldn't need to go up or down with subscribing to ISP. Cost is overall higher, since without ISP, there are no lease payments per subscriber for use. So this gives us a flat fee for the CPE to the co-op, another fee to the ISP, plus a lease payment from the ISP. CPE would cost $30/mo until paid for. Another $10 to ISP, who also pays a monthly lease payment based on their own use. Or a 25/15 split. Additional services, additional fee from subscriber and additional lease payment from service provider.
3. Network is built by attracting subscribers – residents and businesses – in the areas we are building out to, selling them services which pay for the systems we are building
Ideal is to have at least 50 subscribers lined up for every tower before we start – or a base that will support large purchases of bulk-discount antennas.
4. Various grants and loans are available. With adequate subscribers, we can ensure any loans are paid back promptly.
5. Under a co-op system, once the antennas and CPE are paid off, the individual monthly payments will be able to be dropped, returning value to the member-owners without having to return dividends directly. Two to Three years would enable a ½ drop in cost of base service, so that every income level can be reached.
6. Ideal is to settle down at about $20/month, but initially the start-up fee will need to be about $40, which is what many people are already paying for dial-up (with a second phone or waiver of “long distance” fees.)
Total Cost of Operation factors
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1. Strong Liaison with service providers for ROI
§ Their advertising will need to be beefed up to ensure subscribers in any new area.
§ This will enable various ISP’s to compete over our network for clients, which gives these ISP’s greater quality of service and greater reach
§ Installers will have to be worked out. Ideally, this would be done by co-op for each resident, their choice of ISP wouldn't then affect their CPE (ie. Install/uninstall)
2. More network technicians
§ Homeland Security will require a central RADIUS server for mobile access.
§ More installers and maintenance.
§ These will need to be trained and training updated.
§ Pay and benefits will need to be sufficient to assist retention.
3.  R&D constant for cheaper andmore efficient CPE's, antenna systems
4.  Expansion of current customer support in liaison with service providers.
Advantage is that these units can be administered remotely to see if they are operating and at what bandwidth, as well as maintained remotely with firmware uploads, etc. Enabling ISPs to check the CPE should take care of most help desk scenarios.
5. Networked / Alliance with Axtelltech to get the advantages of their know-how, experience and established network of Alvarion operators.
6. Strong liaison with ATC (MACC, Linn Tech) will need to be established so that training is simple, direct and inexpensive.
(Retraining of displaced / laid-off workers is then possible, as well as recruiting A+ and vocational-technical students.)
Equipment Cost estimates
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Install Stage 1:
2 Alvarion antennas – point to multi-point @ $1200ea.
2,400.
6 Proxim Tsunami's - @ $3500ea
21,000.
Probable 40/50 foot mast at JJ site.
?
Possible outbuilding for fiber to radio connection.
100 CPE's (can be leased over 3 years)(@ ~$750 ea. = 75000.)
Est. cost
23,400.
Revenue flow at this point: $4,000 per month (100 subscribers).
(W/CPE's - $108400.)
Install Stage 2:
2 Alvarion antennas: point to multi-point
2400.
4 Proxim Tsunami's
14,000.
Probable 40/50 foot mast atRush Hill.?
100 CPE's
Est. Cost
$16,400.
 
Revenue flow at this point: $8,000 per month (200 subscribers).
Install Stage 3:
2 Alvarion antennas – point to multi-point
2400.
4 Proxim Tsunami's
14,000.
100 CPE's
Est. Cost
$16,400.
Revenue flow at this point: $12,000 per month (300 subscribers).
Install Stage 4:
4 Alvarion antennas – point to multi-point
4,800.
8 Proxim Tsunami's
28,000.
200 CPE's
Est. Cost
$32,800.
Revenue flow at this point: $20,000 per month (500 subscribers).
Install Stage 5:
13 Alvarion antennas – point to multi-point
15,600.
26 Proxim Tsunami's
91,000.
Probable 2 or 3 40/50 foot masts at necessary sites.
?
650 CPE's
Est. Cost
$106,600.
Revenue flow at this point: $46,000 per month (1150 subscribers).

 

Totals:

Total minimal investment in CPE's
$862500.
Estimated Total Cost of antenna hardware
$1,034,700.
This gives direct capability to service 1150 customers, out of 26,000+ residents in Audrain County.
When 15% of county population has broadband Internet access, revenue will be $144,000 per month.
At this point, some of the original 6-8 antennas will need to be replaced with sectional antenna's – probably the Alvarion's around Mexico and perhaps Vandalia, Laddonia.
Above costs are estimates only and do not include labor and on-site cabling or any necessary antennas masts needed for rare cases where building isn't near by, or tall enough.
Bulk purchases would lower above costs significantly. Research is continuing for less expensive antennas that match or improve performance.
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Robert C. Worstell
updated 11/20/02