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05/03/2022
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05/03/2022
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5/27/2022 3:33:29 PM
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5/27/2022 12:44:44 PM
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Meetings
Meeting Type
BCC Regular Meeting
Document Type
Agenda Packet
Meeting Date
05/03/2022
Meeting Body
Board of County Commissioners
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"dark" fiber services. And the County also must decide what type of financial model <br />or monetization model it prefers. <br />The options are: <br />1. Dark fiber monthly or annual leasing based on a per fiber mile basis <br />2. Lit circuits <br />3. Fiber capital leases also known as IRUs (Indefeasible Right of Use) <br />4. Revenue share <br />Option 1 is a very common revenue mcdel and requires less O&M from the County <br />but also may produce less revenue. <br />Option 2 is more often a model used by network operators who look to maximize <br />revenue potential and are willing to take more responsibility for O&M support to <br />and for ISPs. <br />Option 3 is the model preferred by much larger ISPs because they can carry it as an <br />asset on their books and also has less cost for ISPs over time, this also requires less <br />O&M services for the County but produces the least revenue for the County. <br />Option 4, revenue share has become more common in the last several years and is <br />based on a success and a win-win type basis and more of a partnership type <br />structure. An example of this is Huntsville, AL and West Des Moines, IA where <br />Google is paying five dollars per month per "customer passed" for use of the <br />community owned fiber network. This option can provide enhanced revenue and <br />less O&M cost for the County if structured properly. <br />Estimated Financials - Option 3 <br />The Indian River network has an opportunity to increase broadband availability, <br />bridge the digital divide and lower cost for consumers. Being that the network is to <br />be paid for by grant funding enables Indian River to provide facilities that will spur <br />competition by lowering the cost of entry into the market for ISPs wishing to serve <br />the Indian River market. The network is a hybrid fiber/wireless network providing <br />high capacity. The network will consist of 288 count dark fiber, almost all <br />underground and spanning a total of about 150 miles of fiber network. The <br />backbone fiber is capable of 1 gigabit to 40 gigabit and beyond depending on the <br />electronics deployed on the network. The fiber network is designed to connect all <br />County facilities, is a foundation for expanding broadband services and provides <br />backhaul for the wireless towers. <br />46 <br />WWW.MAGELLAN-ADVISORS.CoM 221 <br />
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