Agmt 2011 San Leandro Dark Fiber LLC (2)

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correspond to the EDAC vision elements of A Sustainable Community and A Diversified Economy. The "Lit San Leandro" project is a game changer. It is truly an infrastructure project — it is not being put in for a particular job or upgrade, it is being installed for the use of next generation manufacturers and commercial (e.g. hospitals) operations. Fibers carry extremely large amounts of information very rapidly — it is hard to imagine but in a recent experiment referenced below, the Karlsure institute in Germany managed to send 26 terabits per second. http: / /www.eizmodo.com.au /2011 /05/ record - breaking -laser -beam- transfers -26- terabits -per- second/ This is hard to quantify but this data transfer speed would transfer the entire Library of Congress across the fiber in 10 seconds. In the case of Internet usage, good Internet today is I Mbit and the T -1 —the staple of the telecom industry — is 1.4 Mbit. A typical building for both telecom and Internet usage might have a single T -1 or if really data intensive with 100's of workers it might use a T -3 (essentially 3 T -1 lines). At the speeds above, a single fiber the diameter of a human could accommodate nearly 2,000,000 T -1 lines. In the fiber industry you need a fiber to send and one to receive and generally you have two pair of fibers that are sent different routes so to `light" a complex it takes 4 fibers. The speed is then a function of the electronic /laser interface at the building and fast equipment today supports 120 channels of 100 GB communication. Although many might say that this is more than the world will need, it is instructive to look at the telecommunications needs over the last decade. In my company we have grown from a single T- 1 to more than the equivalent of 32 T -1 lines and we project orders of magnitude increase in the requirements to accommodate "The Cloud." In the US many areas are out or close to out of bandwidth because we underestimated or did not envision companies like Netflix, HTTP (the Web), YouTube or Bit Torrent whose users consume over 50% of the download bandwidth of the Internet. We must expect nothing except explosive growth of these kinds of companies with "The Cloud" and we can already see that critical service (e.g. Hospitals, Military) are demanding dedicated networks. The bottom line is that to create a business that depends upon fiber optic requires: 1. A Loop Structure (for redundancy) 2. Dark Fiber (Dedicated) for High Security Communication 3. Availability 4. Fiber ( commonly called "All Glass") connection to data centers, services providers, and other facilities for distributed companie 5. All of these (1 -4) at a reasonable cost. The Lit San Leandro Project has all of this. It completes an 11 mile loop around San Leandro and connects into the Route Diverse gateway to the rest of the world via BART Telecommunications. The Economic Benefit to San Leandro would be via property taxes and, if applicable, sales taxes for the manufacturing jobs and supporting commercial operations to support the new employees. 1677047v4 26 Lit San Leandro Fiber Optic License