Middlesex County Council Visioning Session Tuesday, January 13, 2015 London,

swiftnetwork.ca facebook.com/networkswift twitter.com/networkswift Who we are

• 14 Counties and Chatham- Kent in Caucus • 9 separated municipalities of Kitchener-Waterloo, Windsor, London, St. Thomas, St. Mary’s, , City of Stratford, and • Other partners are educational institutions, healthcare organizations, First Nations, private sector enterprises WOWC’s Mission: “enhance the prosperity and overall well being of our communities”

Southwest Ontario has over 3 Million people – ~10% of Canada’s population SWIFT Steering Committee

• Duncan McKinlay, Past Warden, (Chair) • Sonya Pritchard, CAO, • Geoff Hogan, Director of IT, Grey County • Serge Lavoie, President, South West Economic Alliance • Mike Morgan, IT Manager, Waterloo Region District School Board • Barbara Swartzentruber, Senior Advisor, Policy & Intergovernmental Affairs, City of • Helen Hambly, Associate Professor, School of Environmental Design and Rural Development, University of Guelph • Todd Sands, former Executive Director & CIO, Centre of Smart Community Innovation, WEDnet, University of Windsor • Brad Gray, Operations Manager LARG*net, London • Jim Wilson, CIO, Middlesex Hospital Alliance • Bill Hill, Warden, Dufferin County • Don McKay, Warden, Oxford County • Dan Mathieson, Mayor, City of Stratford

* Composition of committee changing after January 9th WOWC meeting CONTEXT FOR THE PROJECT Job Loss in Traditional Industry

(675 jobs)

(560 jobs)

(4,500 jobs)

(1200 jobs) The Internet of Everything Big Data is Everywhere

www.HarvestGeek.com Regional digital infrastructure enables apps

Connecting and monetization of city services.INTELLIGENT (Source: Cisco) HOME/FARM

“The digital foundation and plumbing for applications are needed to enable 21st century applications, economies and societies.” (Source: ITU)

• High speed connectivity • Smart devices, Applications • Sensors • Video • Cloud computing • Wireless access • Big data • Sharing (sensors, data) Fibre – Smaller Investment, Large Return

Cost per Km

$500,000

$450,000

$400,000

$350,000

$300,000

$250,000 Cost per Km

$200,000

$150,000

$100,000

$50,000

$- Paved Road Water Main Electricity Gas Main Wireless Fibre Optic Pole Line Network Network Copper/wireless vs. Fibre Optics?

The choice is clear….

Evaluation Criteria Wireless Copper Fibre Bandwidth (Information Carrying Capacity [Mbps]) 70* 100 8,000,000 Distance Sensitivity (km) 50 0.5** 80 - 200 Immunity to interference (atmospheric or EMI) Power consumption per user (Watts) 7 10 2 * Bandwidth is not typically made available to a single subscriber and is shared capacity ** Assumes POTS cabling and is the maximum distance of the cable plant from the Central Office to realize 100 Mbps Bandwidth Bottleneck or Big Road

Copper/wireless vs. Fibre

Asymmetrical vs. Symmetrical

QoS for Apps QoS for Apps

Service guarantee for customers Service guarantee for customers FINDINGS OF THE FEASIBILITY STUDY Feasibility Study

1. Data collected and mapped from providers and users (MUSH sector) 2. Problems identified • SWO has poor broadband in comparison to GTHA • Providers pick broadband winners and losers based on ROI • Very little competition to improve price and service quality 3. SWIFT network is feasible to build • One time NBCF funding, ongoing funding for last mile based on residuals from rates Guiding Principles

1.Standards based architecture 2.High availability and Scalability 3.Neutrality and Open Access 4.Ubiquity and Equitability 5.Competition and Affordability 6.Broad community participation 7.Sustainability SWIFT Organizational Structure • Not-for-profit, non-share capital corporation

• Governed by board of directors (majority public sector) • Providers build, own and run network – SWIFT oversees compliance with principles and subsidy • Existing fibre assets employed wherever available, new fibre assets built to fill gaps • SWIFT is funded ongoing by residuals from rates from providers Future Runs on a Fibre Platform

• Future job growth • Knowledge worker • Government Savings • Remote access to specialist ( e.g. OTN) • Patient monitoring (in home) • Distance Education • Shared Services • Advanced Manufacturing • Agri-business / Small Business • Disruptive Technologies like 3D Printing The SWIFT Network Design / Cost

Features • Up to 1 Gbps access for under $100/ month (target) for all business & residents • IXP’s like 151 Front St., , Windsor/Detroit, 350 Main St., Buffalo • 310 Communities fibre optic access to as low as 4 person / km2 Cost • Project ~ $500K spent to date plus staff time • Capital $234M • Last Mile fibre $60 - $70M or 25% - 30% of $ to connect public sector sites • Day One operating of $9.5M may be reduced or eliminated by outsourcing • Infrastructure Canada funding • Total $243.5M (SCF or PTIC) Funding • Funding for provincial/ regional projects over $100 million like EOWC’s EORN at • Federal $81M $170 million • Provincial $81M • Municipal $16M • Private $65M Point of Presence (POP) – “Blue Box” “I skate to where the puck is going to be, not where it has been” The Plan Key Messages

• SWO needs all the tools (infrastructure) to compete • New digital economy requires solid foundation (scalable fibre-optic network) • Long term public sector involvement means socio- economic priorities are considered not just bottom line • Initial Project - Drive fibre into 310 communities, Density as low as 4 people / sq. km - 20 year vison – everyone connected • Open access for all users and providers more competition, better services, and lower wholesale and retail prices for everyone • SWIFT enables steadily increasing service provider competition. Without SWIFT it won’t happen. Capital Contribution $75,000 annual contribution leverages over $14M for Middlesex County and $227M for region* Region Member Total Non refundable contribution $ 6,000,000 $ 375,000 Refundable contribution $ 10,000,000 $ 625,000

Total member contribution $ 16,000,000 $ 1,000,000

Federal & Provincial Share $ 162,000,000 $ 10,125,000 Private Sector Share $ 65,000,000 $ 4,062,500

Total $ leveraged $ 227,000,000 $ 14,187,500 Model ** - Middlesex contributes (non-refundable) $ 69,160 (refundable) $ 87,653 Total (annual) $156,813

* Based on model where each of 16 partners contributes equally (formula for contributions not yet approved) ** Based on draft formula not yet approved by Caucus Timetable (short term)

• SCF application submitted December 19 • Next WOWC meeting in January to pick new caucus chair and new SWIFT chair • Education of 16 Councils • Funding announcement (est Q1 2015) • Find program for balance of funding • RFI/RFP Q2-Q3 2015 Call to Action

• Sign up for information • Web www.swiftnetwork.ca • www.twitter.com/networkswift • www.facebook.com/networkswift

• Raise awareness with MP and MPP regarding balance of funding for larger communities Questions?

Geoff Hogan @geoffhogan [email protected]

Timetable

Next steps Start Finish

• Feasibility Study November 2012 October 2013 • Consultation with stakeholders August 2013 December 2014 • Organizational structure April 2014 August 2014 • Funding application September 2014 January 2015 • Business case review November 2014 March 2015 • Contribution agreements April 2015 June 2015 • Funding received July 2015 August 2015 • RFI/RFPs issued to providers September 2015 November 2015 • Providers MSA/SLAs signed December 2015 February 2016 • End state report completed August 2015 February 2016 • Detailed operating plan February 2016 March 2016 • Marketing plan completed March 2016 April 2016 • Deployment completed January 2016 December 2020