Item em 3.4 T-Mobile obile Fund unding ing and nd Rei eimbu - - PowerPoint PPT Presentation

Item em 3.4 T-Mobile

• bile Fund

unding ing and nd Rei eimbu mbursement sement Agr greem eemen ent

Dolan an Beck ckel, el, Direct ector

• r,

, Office ce of Civic c Inno novati tion

• n and Digital

l Strat ategy egy Kip Harkn rkness ess, Deputy uty City y Manager ger

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Sourc urce: Akamai and speedtest.net

San Jose’s broadband significantly lags our peers

Broa Broadb dban and d Str Strat ateg egy

20 40 60 80 100 120 140 Boston, US Denver, US San Jose, US Los Angeles, US New York, US Austin, US Seattle, US Paris, France Bucharest, Romania Kansas City, US Kowloon, Hong Kong Central District, Hong Kong Singapore

Average residential wireline download speeds (mbps)

5 10 15 20 Washington DC Houston San Jose Philadelphia Boston Dallas San Francisco New York Los Angeles Atlanta Chicago Miami

Average mobile download speeds (mbps)

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Source: 2015 American Communities Survey Percentages are compared to category – overlap occurs

50,000 ,000 Unc Unconnect

• nnected

ed Ho Hous usehol eholds ds

4% 12% 15% 19% 23% 23% 40% 45%

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Di Digita ital l Inc nclusion lusion

Hy Hybri brid d Appr proach

• ach – 80%

% re resu sult lts s for r 20% % ef effor

• rt

Government-led Hybrid model (Recommended) Market-led Summa mary

Cities building full fiber networks is expensive, complex, and risky Cities that welcome private investment with appropriate guidance are most successful Cities with laissez faire broadband stagnate as cable-telecom duopolies

Key Takeaways

• Seattle, Palo Alto and others have

determined that city-led full fiber build-

• uts are not practical, after detailed

assessments

• Chattanooga’s unique buildout included

control by the utility and federal funds

• Enter into value exchange agreements

leveraging City Assets to incent investment, fund speed and predictability, and close the digital divide

• Centralize broadband governance
• Adopt balanced broadband friendly

policies.

• Broadband speed and price cluster to

the bottom of the peer set

• No substantial competition in any

market-led city Seattl ttle

San Franci ncisco (just t shelved ed plans ns)

New York k City ty Los s Angel geles es Charl rlotte

• tte

Kansas s City ty San Diego iego San Jos

• se

e (his istorica toricall lly) Chatta ttanooga

• ga



Too Risky ky Too Ineffect ectiv ive Just t Right ht

Broad Broadba band nd Stra Strategy egy

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• Deploy T-Mobile next generation 5G macro cell based network
• 109 improvements to existing macro sites on public and private property
• 36 new macro sites (1 tower, 35 rooftops/similar, 5-9 on City property)
• Achieve Speed and Predictability
• City makes good faith effort to meet / exceed targets for increased speed

and volume

• City investigates regulatory improvements along with other process

improvements

• T-Mobile funds $800,000 drawdown account for additional City resourcing
• T-Mobile funds $500,000 City process improvements
• Enable $21 Million private sector infrastructure investment
• Accelerate Metro brand targeting under served communities
• Generate approximately $900,000 in macro usage fee revenue
• Investigate large facility competitive access

T- Mob

• bile

ile Agree reement ent

5

Equitable Deployment

6 15 15 19 19 14 14 24 24 19 19 12 12 7 7 22 22

Legend nd Counci ncil District trict #

Mods s & New Sites es

Exam ample: le:

24 24 Tot

• tal Sites

District trict 3

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Ena nable bles s Ne Next t Gener nerati ation

• n 5G

5G+ D + Deplo ployme yments nts

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• Increased speed and capacity
• Reduced latency
• Massive input/output processing
• Enables new technologies