Palo Alto Telecommunications History 1900 Municipal utility formed CPAU 1964 Lucrative hydroelectric contract CPAU Conservative re untried tech e g Nuclear power Mid 1990s Energy deregulation threat of competitive providers Constructs 30 mile fiber ring around city 2m Commercial Dark Fiber services as revenue Profitable 100 projects Utilities use ring Attractive city feature Late 1990s Fiber To The Home Activists The fiber ring runs by my house hook me up Nov 2000 FTTH trial budget OK d Trial participant location and equipment selection Trial period 9 2001 2002 FTTH Vision Revenue to fight new threat Hydroelectric contract expires 2004 Private sector has limited offerings AT T Bband Pacbell Municipalities have a competitive edge rights of way 30 year financing etc Good DIY track record in utilities Connected communities Silicon Valley leadership role FTTH Reality Fiber rules Reliability is the killer app Serious speed is a bonus Maytag repairmen Marconi 4 1 split PON using PPPoE 7Mbps dn 4 Mbps up Bundled CATV DBS POTS Marconi accommodates legacy standards POTS and analog video Feasibility trial only Not for price elasticity data Awareness initiative Unforeseen evils FTTH Future Business case to Council Fall 2002 Consultant is key vendor for APPA Hometown Connections International trends data Survey trial data Architecture equipment selection etc Economic modeling pricing Financing options And customer service It s a service first a wizbang technology second