Reso 2018-116 - Laserfiche WebLink

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uuriur��ivaaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiaiair APPENDIX F. COST ASSUMPTIONS QQ The following financial models are based on conservative estimates to reflect a "worst case scenario" in which user take rates and revenue opportunities are low. It also does not consider potential grant and assistance programs that may supplement the cost of the project nor lease savings made possible by using City assets instead of leasing from outside providers. The model assumes that Phase 1 will continue as is, but with a change in business model. Currently, Lit San Leandro is only offering dark fiber services and is missing a large part of the market. Dark fiber is not for all businesses as it requires a large capital expense in terms of equipment, and resources that have knowledge and expertise in managing the appropriate electronics to make the dark fiber useful. Dark fiber dedicates a strand of fiber for each end user, that will in turn do what they want with that fiber. Eventually, many dark fiber suppliers run out of strands to lease. An alternative approach is to offer "lit" services on a wholesale basis to an ISP, that in turn offers services to the end user. Lit services, for purposes of this model, will offer the following solutions: • 1Gbps Dedicated (not oversubscribed, higher priced) $1,250 monthly ($720 wholesale) • 100Mbps Dedicated $500 monthly ($360 wholesale) • 1Gbps Best Effort (oversubscribed, less expensive) $130 monthly ($90 wholesale) • 100Mbps Best Effort $100 monthly ($70 wholesale) Offering these lit services opens the market from just large enterprise customers, to all small medium and enterprise customers. As of this writing, 1Gbps (1,000 Mbps) and 100 Mbps are products and speeds end users are asking for today. However, it should be noted that the proposed network can deliver much higher speeds than those advertised above, and consideration should be given to higher offerings if it encourages a better take rate. Once the fiber is in the ground, the incremental cost to provide 1Gbps service vs 100Mbps service is negligible. If offering a 500Mbps service instead of a 100Mbps service will help in the marketing efforts, than it should be considered. Dedicated vs Best Effort Dedicated bandwidth essentially guarantees a certain level of performance between the customer site and the internet connection point. Generally, no other users "share" the fiber, but it is dedicated to that customer. 175