HomeMy WebLinkAbout20173286.tiffOFFICE OF BOARD OF COMMISSIONERS
PHONE: 970-336-7204
FAX: 970-336-7233
1150 O STREET
P.O. BOX 758
GREELEY, COLORADO 80632
September 19, 2017
Broadband Fund
Department of Regulatory Agencies
1560 Broadway, Suite 1550
Denver, CO 80202
Dear Colorado State Broadband Grant Fund Board,
We are strongly recommending your approval of CenturyLink's application of September 12, 2017 seeking
Colorado State Broadband funds to provide eligible customers in Weld County with a minimum of 25x3
megabits per second speed to access the Internet.
In our community, increased demand for high-speed access to the Internet has grown dramatically in recent
years and it is essential that improvements be made to improve the broadband infrastructure in Colorado to
increase availability, capacity and bandwidth speed, at affordable pricing for our constituents.
We applaud the use of state funds to leverage the private investment by CenturyLink in order to maximize the
enablement for as many locations as possible given the finite financial resources available with the broadband
fund. These combined funds will help foster the economic vitality of the state with the creation of new jobs,
the improvement in education achievement and growth of health care opportunities.
Please give CenturyLink's application full consideration and approval of its application so that Weld County
residents can benefit from this needed investment and improved broadband service.
We are excited about the opportunities for our constituents with this approval and stand ready to be of any
further assistance to make this possible.
Thank you for your efforts and we look forward to the State Broadband Board's approval of broadband funds.
Sincerely,
BOARD OF COUNTY COMMISSIONERS
Julie A.
Steve Moreno, Pro Tern
Mike Freeman
c: Don Warden
0-40Mneluni co.-+;ons
9/x5/17
rbara Kirkmeyer
2017-3286
COLORADO
Department of
Regulatory Agencies
clot
$roadband Fund Application
NOTICE: This application, attachments and all other information provided to the Broadband
Deployment Board (Board) are available for public inspection and will be posted on the
Board's website. If any of the requested information or documentation is missing your
application will be rejected.
Please contact Board staff to discuss your proposed project before completing and
submitting this application.
General Information:
1. Name/Title of the project:
-CenturyLink Broadband Enablement Project
-CenturyLink is proposing 23 independent wire center sub -projects comprised of 115
remote terminal sites that would enable 11,540 customer locations at 25/3 Mbps or
greater. By way of background, a wire center is a large geographic area that contains
centralized switching and transport facilities which serve the area. The wire center
is larger than the main town for which is it named. As the Board will see in the maps,
none of the locations are actually within the municipal boundaries of the named town
(unless allowed per the statutory requirements). The 11,540 enabled locations are
broken down into the following speed tiers:
• 3,213 locations would be enabled at 100/10 Mbps;
• 3,624 locations would be enabled at 80/10 Mbps; and
• 4,703 at 25/3 (or greater) Mbps.
-Each wire center should be considered separately as a single sub -project within the
overall enablement project application and each can be funded independently. The
costs for all of the locations within each wire center are based upon utilizing the
synergies of some shared infrastructure and therefore awards should not be made
below the wire center level. However if the Board, upon reviewing the maps of the
areas that would be enabled within each wire center, wishes to consider funding sub -
wire center locations, CenturyLink could re -calculate those costs and present those
modifications.
-For the convenience of the Broadband Board, CenturyLink has broken down the
opportunities to improve broadband into three categories to allow the Board to make
decisions based upon a variety of criteria: 1) The number of locations per sub -project,
2) Total Broadband Grant Amount per sub -project, 3) Communities of Interest.
-Additionally, an issue that was raised with its prior application was that it was
unclear to the Board which sub -projects CenturyLink favored. CenturyLink believes it
is entirely the board's discretion which sub -projects to fund and that the board should
ensure that it is spending the consumer's money as prudently and as economically as
possible. CenturyLink supports striking a balance between reaching the most
locations and the lowest average cost to serve those locations.
A. MAIN LIST - NUMBERED/ALPHABETICAL:
Sub-
Project #
Requested
Site Enabled Grant
Wire Center Name Count Locations Amount Total Cost
1
Ault
4
214
2
Bailey
12
839
$1,068,693
$1,424,925
3
Basalt
4
855
4
; 2 ,463
4
5
Berthoud
Buena Vista
5
4
351
424
$331,352
$
$441,803
r1 7
6
Carbondale
8
312
$383,499
$511,332
7
CentralCity
2
274
. ,137
8
Coal Creek Canyon
7
606
$714,422
$952,563
9
Copper Mountain
2
567
$260„624
$ 132
10
Del Norte
3
300
$493,788
$658,384
11
Delta
5
364
0
,214
12
Elizabeth
10
495
$372,066
$496,089
13
Evergreen
6
X59
$3
.291
14
Fruita
3
115
$179,325
$239,100
15
Glenwood Springs
1
117
'
$1 3
16
Idaho Springs
1
33
$63,488
$84,651
17
Leadville
4
, . .735
18
Mead
7
856
$644,037
$858,716
19
Olathe '
3
21;32a13i317
20
Parachute
11
2,096
$1,047,294
$1,396,393
21
Silt
5
347
22
Snowmass
4
1,066
$417,656
$556,875
23
Woodland Park
4
221
X552
23
115
11,540
$9,335,141
$12,446,855
B. SORT BY LOCATIONS ENABLED
Sub-
Project
#
Requested
Site Enabled Grant
Wire Center Name Count Locations Amount Total Cost
20
Parachute
11
2,096
$1,047,294
$1,396,393
22
Snowmass
4
1,066
$417,656
$556,875
18
Mead
7
856
$644,037
$858,716
3
Basalt
4
855
$201,347
$268,463
2
Bailey
12
839
$1,068,693
$1,424,925
8
Coal Creek Canyon
7
606
$714,422
$952,563
9
Copper Mountain
2
567
$160,614
$214,152
12
Elizabeth
10
495
$372,066
$496,089
13
Evergreen
6
459
$375,968
$501,291
2
5
Buena Vista
4
424
$901,835
$1,202,447
17
Leadville
4
405
$641,051
$854,735
11
Delta
5
364
$216,910
$289,214
4
Berthoud
5
351
$331,352
$441,803
21
Silt
5
347
$318,002
$424,003
6
Carbondale
8
312
$383,499
$511,332
10
Del Norte
3
300
$493,788
$658,384
7
Central City
2
274
$156,852
$209,137
23
Woodland Park
4
227
$194,664
$259,552
19
Olathe
3
218
$127,265
$169,687
1
Ault
4
214
$245,580
$327,440
15
Glenwood Springs
1
117
$79,427
$105,903
14
Fruita
3
115
$179,325
$239,100
16
Idaho Springs
1
33
$63,488
$84,651
23
115
11,540
$9,335,141
$12,446,855
C. SORT BY REQUESTED GRANT AMOUNT
Sub-
Project
#
Wire Center Name
Site
Count
Enabled
Locations
Requested
Grant
Amount
Total Cost
2
Bailey
12
839
$1,068,693
$1,424,925
20
Parachute
11
2,096
$1,047,294
$1,396,393
5
Buena Vista
4
424
$901,835
$1,202,447
8
Coal Creek Canyon
7
606
$714,422
$952,563
18
Mead
7
856
$644,037
$858,716
17
Leadville
4
405
$641,051
$854,735
10
Del Norte
3
300
$493,788
$658,384
22
Snowmass
4
1,066
$417,656
$556,875
6
Carbondale
8
312
$383,499
$511,332
13
Evergreen
6
459
$375,968
$501,291
12
Elizabeth
10
495
$372,066
$496,089
4
Berthoud
5
351
$331,352
$441,803
21
Silt
5
347
$318,002
$424,003
1
Ault
4
214
$245,580
$327,440
11
Delta
5
364
$216,910
$289,214
3
Basalt
4
855
$201,347
$268,463
23
Woodland Park
4
227
$194,664
$259,552
14
Fruita
3
115
$179,325
$239,100
9
Copper Mountain
2
567
$160,614
$214,152
7
Central City
2
274
$156,852
$209,137
19
Olathe
3
218
$127,265
$169,687
3
15
Glenwood Springs
1
117
$79,427
$105,903
16
Idaho Springs
1
33
$63,488
$84,651
23
115
11,540
$9,335,141
$12,446,855
D. SORT BY GEOGRAPHIC COMMUNITY OF INTEREST (There is no expectation or
specific request that the wire centers be chosen as a group. This is merely an
idea for the board to consider the geographic relationship between the wire
centers).
Sub-
Project
#
Wire Center Name
Site
Count
Enabled
Locations
Requested
Grant
Amount
Total Cost
1
Auit
4
214
$245,580
$327,440
4
5
351
$331,352
$441,803
18
Mead
7
856
$644,037
$858,716
2
Bailey
12
839
$1,068,693
$1,424,925
7
Central City
2
274
$156,852
$209,137
8
Coal Creek Canyon
7
606
$714,422
$952,563
13
Evergreen
6
459
$375,968
$501,291
16
Idaho Springs
1
33
$63,488
$84,651
3
Basal
F "
4
855
$201,347
$268,463
6
rb
8
312
$383,499
$511,332
15
1
117
$79,427
$105,903
21
5
347
$318,002
$424,003
22
Srtovrna
4
1,066
$417,656
$556,875
5
Buena Vista
4
424
$901,835
$1,202,447
17
Leadville
4
405
$641,051
$854,735
9
Copper Mountain
2
567
$160,614
$214,152
10
Del Norte
3
300
$493,788
$658,384
11
Delta
5
364
$216,910
$289,214
14
Fruita
3
115
$179,325
$239,100
19
Olathe
3
218
$127,265
$169,687
20
Parachute
11
2,096
$1,047,294
$1,396,393
12
Elizabeth
10
495
$372,066
$496,089
23
Woodlan writ
4
227
$194,664
$259,552
23
115
11,540
$9,335,141
$12,446,855
2. Applicant's legal name:
-CenturyLink, Inc'
3. Designated contact authorized to apply on behalf of the Applicant (this person will receive all
communications related to the application):
' CenturyLink, Inc is the parent holding company. The locations in the proposed application would be
operated by the CenturyLink QC subsidiary.
4
Name: Guy Gunther
Title: VP - Operations
Mailing Address: 700 W Mineral Ave
City/Zip: Littleton 80120
Email: guy.gunther@centurylink.com
Phone: 303-992-3049
4. Total project cost:
-As indicated in #1 above, Centurylink has provided the Board with a variety of choices
to be considered. Each Wire Center Sub -project contains the costs specific to that wire
center.
5. Amount of grant funds requested:
-As indicated in #1 above, CenturyLink has provided the Board with a variety of choices
to be considered. Each Wire Center Sub -project contains the specific grant amount to
fund a selected wire center.
6. Amount of matching funds (must be at least 25% of total project cost and please list the
sources of matching funds):
-CenturyLink would self fund the 25% for any awarded project.
7. Complete Attachment A.
a. What is the total number of street addresses that will receive Broadband service
resulting from this project? 19,280 addresses would receive higher speeds, with
11,540 receiving 25/3 or greater.
b. How many residential addresses will receive Broadband service resulting from this
project? CenturyLink does not know if a specific address is a residence or business
until that customer location places and order for service.
c. How many business addresses will receive Broadband service resulting from this
project? CenturyLink does not know if a specific address is a residence or business
until that customer location places and order for service. However, we were able
to identify Anchor Institutions through a separate database tied to the national
broadband maps.
-See Attachment A for specific address information and Anchor Institution locations.
8. What is the total population that will receive Broadband service resulting from this project?
-Please see #1 above. 11,540 locations will be enabled at speeds greater than 25/3Mbps.
A total of 19,280 living units will receive improved speeds. See Attachments A & B for
additional detail.
9. List the unserved community anchor institutions (schools, libraries, government offices,
hospitals, first responders) that will receive Broadband service resulting from your proposed
project?
-See Attachment A, Anchor Tab.
Project Requirements:
1. Describe in detail how your project meets each of the following requirements. Attach
supporting documentation as appropriate.
a. The area lies outside of municipal boundaries or is a city with a population of fewer
than 5,000 inhabitants; and consists of one or more contiguous census blocks in which a
majority of the households lack access to at least one provider of a broadband network
5
that uses satellite technology and at least one provider of a broadband network that
uses non -satellite technology.
-Please see the Attachment G's for each wire center sub -project. All projects
meet the requirements of being either outside of the municipal boundaries or have
fewer than 5,000 inhabitants. Additionally, utilizing data provided by the FCC,
each of these locations falls within a census block where a majority lack access to
at least one provider of a broadband network that uses satellite technology and
at least one provider of a broadband network that uses non -satellite technology.
b. The project for which funding is requested must be a new project, and not a project in
progress already. A "project in progress" means one in which construction of
infrastructure has started. Phased projects may be considered a new project if the
phase for which funding is being requested would not otherwise be completed without
funding from the Broadband Fund.
-None of the proposed sub -projects are in progress. Additionally, to clarify, none
of these locations are CAF 11 eligible.
c. Grant funds shall be used for infrastructure deployment only, and not for on -going
operating costs.
-Any funds awarded for these projects would be used for infrastructure
deployment only. Ongoing operations for any of these locations would become
part of our normal operations.
d. The project provides access to a broadband network.
-All locations eligible for a broadband grant would provide access to a broadband
network capable of at least 25/3 service.
e. The project shall provide last mile service, which is defined as the portion of
broadband service that delivers an internet connection to an end user that lacks access
to broadband service at measurable speeds greater than fifty-six kilobits per second.
Proposed projects may include middle mile or other infrastructure necessary to expand
broadband networks into unserved areas.
-Each location enabled would be through a last mile connection to the customer
location.
f. The applicant shall provide independent matching funds of at least 25% of the total
cost of the proposed project. The Board may only consider in -kind matches for the
purposes of infrastructure deployment. In -kind matching contributions shall not include
consulting, planning or operational fees or costs. The applicant shall provide an
appraisal of all in -kind matching contributions, sufficient to enable the Board to
determine the fair market value of the in -kind matching funds.
-As indicated in No. 6 above, CenturyLink will provide 25% of the total cost of the
proposed sub -project as capital dollars. No in -kind matches or contributions are
being incorporated.
g.
6
The project does not conflict with, or duplicate, federal or state sources of high cost
support or broadband grants and programs.
-The proposed projects are separate from any of CenturyLink's Connect America
Fund (CAF) locations being implemented in Colorado. Additionally, CenturyLink
has not used any state funding to provide broadband to any of the proposed
locations.
h. The applicant demonstrates to the satisfaction of the Board that the proposed network
meets industry reliability standards.
-CenturyLink meets industry reliability standards and can provide the board with
any specific information upon request.
i. The applicant demonstrates to the satisfaction of the Board an ability to deliver on the
proposed project within established timelines and within budget.
-CenturyLink has a track record of being able to deliver on time and within
budget. The Connect America Fund (CAF) program is a good current example of
that. The company has met the requirements and obligations for 2016 and is on
target to meet the 2017 requirements as well.
J.
The applicant demonstrates to the satisfaction of the Board the ability to operate the
network as proposed for a minimum of 5 years following project completion.
-CenturyLink has the same type of obligation with the FCC's CAF program which
runs through 2020. CenturyLink has the capability, willingness and interest in
continuing to provide service beyond the 5 year minimum requirement and any
enabled location would be rolled into our normal ongoing operations.
k. The project shall be completed within two years from the date in which the grant
award contract is executed.
-All awarded projects will be completed within the two year requirement.
I. The applicant shall demonstrate to the satisfaction of the Board an ability to provide
broadband service at a reasonable cost per household and at reasonable service costs
to end users in the area to be served.
-See Attachment 8 for specific cost per location information. See Attachment K
for pricing options. Additional promotional pricing can be found at:
http://www.centurylink.com/home/intemet/
m. The applicant demonstrates to the satisfaction of the Board that the project is not in
an area with a population density large enough to require service under an existing
franchise agreement.
-Please see Attachment G or for each sub -project. All sub -projects meet the
requirements of being either outside of the municipal boundaries or have fewer
than 5,000 inhabitants. Additionally, utilizing data provided by the FCC, each of
these locations falls within a census block that lacks majority access to at least
one provider of a broadband network that uses satellite technology and at least
one provider of a broadband network that uses non -satellite technology.
n. The applicant has not been awarded a grant by the Board in the current calendar year.
-CenturyLink was not awarded a grant in 2017. CenturyLink was given two Right
of First Refusal awards and those awards do not disqualify CenturyLink from
pursuing a grant during this award cycle. Additionally, it is possible that the
awards from this grant cycle may not be realized until 2018.
7
o. The applicant shall agree to all award contract terms required by the Board and State
of Colorado including but not limited to reporting and accountability requirements.
-CenturyLink will agree to the terms as set forth in the award contract.
2. Provide a list of all parties that were given a copy of this application, including all
attachments, and the date which it was provided to them. (You are required to submit this
application including all attachments and exhibits to the Board of County Commissioners, City
Council, or other local entity with authority over the area to be served; and the incumbent
provider(s).)
-Please see Attachment L which contains the list of parties that are being provided a copy
of the CenturyLink application.
3. Include Attachment G (a)- A map demonstrating the insufficient availability of broadband
service (25/3Mbps) in the proposed service area. Provide additional documentation and support
as appropriate to prove the entire area to be served is outside of municipal boundaries or is a
city with fewer than 5,000 inhabitants.
-A map of each sub -project area has been incorporated into Attachment G. The source of
this data is the FCC Form 477 Data.
4. To your knowledge have state or federal sources of high cost support or broadband grants been
awarded or used in the proposed service area? If yes, please provide a brief description
including the name of the grant award/high cost support, who it was provided to, what it was
used for and the outcome.
-No. The proposed sub -projects are separate from any of CenturyLink's Connect America
Fund (CAF) eligible locations in Colorado. Additionally, CenturyLink has not used any
state funding to provide broadband to any of the proposed locations.
Demonstration of Need:
1. Why is this project needed at this time? Please include an explanation why you believe state
funds are needed more in your project area than in other unserved areas of the state.
-The proposed wire center locations are considered unserved by the Broadband Board
standards and are very good candidates to be funded through this program. Enabling
these locations would have a positive impact in each community and would further the
goal of ubiquitous broadband across Colorado. Without a grant, these locations are
difficult to economically reach due to the higher costs and lower density characteristics.
2. How does the proposed project address the needs of the community that will receive service?
-The (majority of the) proposed sub -project locations do not have speeds of at least 25/3
Mbps. Enabling a minimum of 25/3 to these locations will assist in furthering the goal of
bringing ubiquitous broadband across Colorado. Every community is different, but they
all share the desire of providing all of their residents improved connectivity at their
homes which allows them greater flexibility to work from home and generally being
connected to the digital world.
3. If you have considered implementation options other than what is proposed in this application,
describe all other options and why they were not chosen.
8
-CenturyLink is continually evaluating options to implement both upgrades to existing
service as well as provisioning new service to locations previously unserved. For the
sub -projects proposed in the application there have not been any additional options
considered to provide service to these locations outside of the technology currently
being presented.
4. Is completion of the project dependent on the award of the entire requested amount of grant
funds? If not, what is the minimum amount of grant funds you require to complete the
project?
-Yes, for each wire center sub -project. The sites within each wire center should not be
reduced or modified. The costs calculated for the locations within each wire center are
dependent upon the entire award for that specific wire center. Each of the 23 wire
center sub -projects can be selected independently. Choosing some wire centers and not
others does not affect the overall costs to enable a selected wire center.
5. If you are not awarded funds for this project, do you have plans to complete it using other
funding sources? If yes, please describe your plan and the source of the funds.
-There are no future plans at this time to complete any of the proposed sub -projects.
6. Does the project address a need(s) as identified in a local or regional broadband plan? If yes,
please explain and attach a copy of the plan.
-While CenturyLink does not have a specific regional plan to refer to, CenturyLink has
held meetings with communities across the state for the past several years in which
we've discussed the plans of each community. Each plan has called for enabling every
location within their community. Centurylink's Broadband Enablement Project moves
each community closer to achieving this shared goal.
7. Include Attachment H - letters of support from local governments, businesses, and
organizations that support your grant application.
-Letters of Support will be submitted separately.
Project Information:
1. Project Budget:
a. Complete Attachment B and provide supporting documentation for line item expenditures.
b. If any portion of the project funding is coming from a third party, describe the
requirements and limitations of that funding (e.g. third party grants requirements, loan
conditions, etc.)
-N/A
2. Design:
a. List and describe in detail the infrastructure and technologies that will be deployed.
Include, at a minimum, the following applicable items in your list and description:
i. Last mile infrastructure and technology
1. Plant (locations, technology, equipment, owner, etc.)
2. Towers/Antennae sites (locations, height, technology, equipment, owner,
etc.)
3. Wireless equipment (locations, technology, equipment, spectrum utilized,
etc.)
4. Trenching (locations, type of cable, etc.)
9
5. Wireline and fiber installation and utilization (locations, type of cable,
owner, etc.)
6. Customer drop to serviceable address (locations, type of cable, etc.)
7. Customer premise equipment (type of equipment, installation
requirements, etc.)
-CenturyLink will be using bonding capable VDSL2 Remote DSLAM terminals to deliver
up to 100Mbps bonded pair service over existing copper access lines. Ultimate speed
capability is determined by proximity to the serving terminal. See Attachment A and
Attachment B for estimated speed breakdowns. Primary DSLAM equipment vendors
utilized are Adtran & Calix. Existing HSI customers may require a new VDSL2 capable
modem. This cost was built into the modeling. Fiber fed VDSL2 FTTN DSLAMs will be
placed at the remote crossbox location and will replace the existing ATM (copper) fed
RT DSLAMs where applicable or direct central office feed. Each new RT DSLAM will
have a 1GigE fiber trunk back to the central office where it will terminate on a MOE
or Data Aggregation Switch. This "Edge" switch connects to another "Core" switch
with a 10Gig uplink via our fiber network. The Core Switch connects to a BRAS
(Broadband Remote Access Server). The BRAS switch provides layer 3 connectivity
and routes IP traffic through an ISP's backbone network to the internet. This
infrastructure and technology is consistent with CenturyLink broadband deployments
used throughout the country.
-As none of these locations are fiber fed today, new placement of feeder and lateral
fiber will be required which will involve a mix of placement methods including:
directional boring, trenching and plowing.
-The underlying network architecture for the projects contained in this application
are: CO direct fed and Copper T 11MA fed RT ATM (limited to 1.5Mbps) upgraded to
FTTN VDSL2 supporting pair bonded service of up to 100Mbps.
-Remote DSLAM equipment will utilize 48 port sealed units with (4) of these units able
to be placed in a typical pedestal (192 ports) and multiple pedestals can be installed
as required.
-See Attachment C.
ii. Middle and backhaul infrastructure and technologies
1. Plant (locations, technology, equipment, owner, etc.)
2. Towers/Antennae sites (locations, height, technology, equipment, owner,
etc.)
3. Wireless equipment (locations, technology, equipment, spectrum utilized,
owner, etc.)
4. Trenching (locations, type of cable, etc.)
5. Wireline and fiber installation and utilization (locations, type of cable,
owner, etc.)
-Middle mile infrastructure will be gigabit Ethernet over fiber back to the existing
central office/wire center. New placement of feeder and lateral fiber to the DSLAM
node will be required which will involve a mixture of placement methods including:
directional boring, trenching and plowing where applicable. Each new RT DSLAM will
have a 1GigE fiber trunk back to the central office where it will terminate on a MOE
or Data Aggregation Switch. This "Edge" switch connects to another "Core" switch
with a 10Gig uplink via existing interoffice fiber network. The Core Switch connects
to a BRAS (Broadband Remote Access Server). The BRAS switch provides layer 3
connectivity and routes IP traffic through an ISP's backbone network to the internet.
10
Backhaul connectivity from the edge/aggregator switch to the core is provided over
existing ROADM fiber transport.
b. Include Attachment C - network or system map, such as a system block diagram or flow
chart, that includes each infrastructure element and technology listed in the above
question (2. a.).
c. Describe the scalability of the network and system elements to meet demand in excess of
forecasts (e.g. how will you handle a larger than anticipated number of subscribers).
-The proposed service will be available to every location listed. The configuration
will handle the demand if every location subscribes to the service.
d. List identified risks to a successful project and describe how you will mitigate those risks.
-CenturyLink does not see any risks above normal course of business, i.e. permitting,
ROW, etc. Each of these risks could slow a sub -project, but none will impede the
ability to be completed within the mandated deadlines.
e. If you are using wireless technology, list the spectrum used, where in the network it is used
(e.g. last mile, middle mile), whether it is licensed or unlicensed spectrum and if it is
licensed whether or not you have a current or pending license to utilize that spectrum.
-N/A
f. List all land, easements, right-of-way and buildings that are to be acquired or leased as
part of the project and the status of any acquisitions or leases.
-Some of the proposed sub -projects may be completed by reinforcement and upgrades
to facilities in existing easements and rights -of -way. Others may require an
additional easement or right of way approval. Upon award, the company would work
directly with the administrative entity jurisdictionally responsible for the area to
move quickly on obtaining any additional requirements, where necessary.
g.
11
Answer the following questions for the backhaul - the portion of the network comprises the
intermediate links between the core network, or backbone network and the small
subnetworks at the "edge" of the entire hierarchical network:
i. Is there redundancy? If yes, please explain.
-Yes Card level redundancy is provided at the core and transport layer
networks.
ii. Is there physical diversity? If yes, please explain.
-Yes fiber diversity is provided at the core switch.
iii. What is the capacity of each link?
- Edge switches and aggregators have 10GigE trunks, Core switches typically
have (2) diversely routed 10 or 100GigE trunks.
iv. Do you have the ability to increase capacity? If yes, please describe how you would
accomplish the increased capacity and the timeframe to complete.
-Yes. Capacity augments can be accomplished through a variety of methods,
either by increasing the overall capacity of each link 10GigE -> 100GigE,
lagging multiple links together (10+10GigE) or by adding additional switch
equipment and load balancing DSLAMS/ customers across the new hardware.
h. Answer the following questions for the middle mile - the segment of a telecommunications
network linking a network operator's core network to the local network plant:
i. Is there redundancy? If yes, please explain.
-No
ii. Is there physical diversity? If yes, please explain.
-No
iii. What is the capacity of each link?
- Each DSLAM will have 1GigE capacity.
iv. Do you have the ability to increase capacity? If yes, please explain how you would
accomplish the increased capacity and the timeframe to complete.
-Yes. Capacity augments can be accomplished through a variety of methods,
either by increasing the overall capacity of each link 1 ->2.4 -> 10GigE or by
adding additional links or DSLAM equipment and load balancing customers
across the new hardware.
3. Service
a. List the network availability and reliability standards used in the design of the proposed
project.
-The actual throughput experience may vary. During most periods, based on
CenturyLink's evaluation, most customers can generally expect average speeds at
or above 95% of the advertised "up to" speed - and many can generally expect
speeds above that level. Less than twenty percent of customers can expect
average speeds below 80% of the advertised "up to" speed. In rare cases, average
speed may be less than this level.
-The service speed is provisioned between the network device and on premises
modem and may vary due to physical condition of the line and other factors. The
percentage of throughput achieved will vary depending on the amount of
bandwidth our network uses in delivering service to each customer location, as
well as other factors outside of CenturyLink's facilities control such as customer
location, the quality of the inside wiring within the home, the websites accessed
by the customer, usage of the network during peak periods of the day and the
customer's equipment within the home or premises.
-Latency is highly variable depending on the network path, other providers in the
path, as well as the actual distance to the destination and performance of the end
destination servers. CenturyLink High -Speed Internet customers should expect
roundtrip latency to most general Internet sites in the range from 50-150
milliseconds.
-The Federal Communications Commission (FCC) has conducted a broadband
testing program which provides measurements of ISP performance, including peak
time upload and download speed and latency performance. The FCC's report on
the results of this program, which includes data regarding the performance of
CenturyLink High -Speed Internet services, is available at:
12
https: //www. f cc. qov/reports-research/reports/measuring-broadband-
america/measuring-broadband-america-2015.
b. List all monitoring tools and methods that will be deployed to ensure proper network
performance.
-Please See 3a above.
c. Is the network capable of providing real-time communications?
-Yes
d. List all standard service package tiers to be offered. The list must include, at a minimum,
the following for each:
i. Bitrate
ii. Usage limits (if any),
iii. Total upfront cost
iv. Itemized list of all upfront costs (e.g. onetime - fees, installation costs, fiber drop
to the premise, customer premise equipment costs, etc.)
v. Total monthly cost
vi. Itemized list of all monthly costs (e.g. recurring - service cost, fees, customer
premise equipment leases or installments, etc.)
-See Attachment K
e. Provide all proposed terms of service, including any required minimum contract term,
customer service hours, additional fees and any early termination fees.
-See Attachment K
f. What is the anticipated take rate, for each service package tier offered, for each of the
first five years of operation?
i. What is the basis for your take rate estimations? Provide the data used in
determining your estimations.
ii. What is the total number of anticipated subscribers within the project service area
for each of the first five years of operation?
iii. Describe how you will handle variations in take rates. Include at a minimum the
following:
1. What is your plan to cover operating costs if take rates are lower than
expected?
2. How will service be affected if take rates are higher than anticipated?
-Historical experience suggests that existing consumers do not take increased speeds
as readily as those customers receiving service for the first time. Generally speaking,
these sub -projects involve customers that already have some level of service.
However, the CO Fed customer's speeds are fairly low. The expectation is that with
the significant increase in speed for the majority of the customers related to each
wire center sub -project, it would not unreasonable to see take rates in the 20-40%
range over the next 5 years.
-The expected take rates are in line with the company's existing availability across
the state and would not impact our ability to operate in these markets if the take
rates are lower than expected. As with any area, if the take rates are higher than
expected, it creates an opportunity for future upgrades and investment. Community
support can be a key driver for future customer opportunities.
13
-The locations are engineered with the assumption that every location could take the
service and not experience any negative service impacts.
4. Project Implementation Plan
a. Provide the name and contact information for the employee who is the primary contact for
this project.
Name: Linda Blackstone
Title: Director - Engineering & Construction
Mailing Address: 700 W Mineral Ave
City/Zip: Littleton 80120
Email: linda.blackstone@centurylink.com
Phone: 303-992-5625
b. Complete Attachment E - Project Plan
-CenturyLink has not yet prepared a detailed construction plan. CenturyLink could
provide additional details for each wire center sub -project. In addition to the
significant number of company -funded deployments performed over the past several
years, the company is currently implementing the CAF II program across Colorado (and
the United States) and the implementation of that program entails the same type of
planning and technology as the sub -projects being proposed in this application.
-As indicated above, the company currently operates in the areas where each of the
proposed wire center sub -projects is located. The proposed sub -projects have
accounted for operational and maintenance costs associated with the provisioning of
service to these locations. Additionally, because the company has already been
accounting for the operational costs of the existing service in these areas and by
eliminating the majority of the capital costs through a Broadband Fund grant, the
contribution margin is dramatically improved which allows for the company to sustain
the operation of each sub -project.
Provider Information:
1. When was your business established?
-The formal date of incorporation for CenturyLink, Inc. (under a different name) was April
30, 1968. CenturyLink and its corporate affiliates and predecessors have been providing
telecommunications services to Colorado citizens for over one hundred years.
2. Are you in good standing with the Colorado Secretary of State?
- Yes.
3. Describe the types of goods and services offered by your business.
-CenturyLink offers many different products and services to all types and sizes of
customers. The company offers business and residential voice, broadband, and video
products. The company provides cyber security and web hosting solutions to both small
and large businesses, as well as to Local, State, and Federal governments. Additionally,
the company provides emergency services, including E911 and NG911 solutions.
4. Provide the names and titles of all officers and executives.
-See Attachment M
14
5. Have you completed an infrastructure project of similar type, size, and scope using the
technology proposed in this application?
-Most recently, Centurylink completed the S30M CAF I, Phase I project across 14 states.
Additionally, Centurylink is in the middle of the CAF II implementation which began in
2015. The company has achieved the 2016 milestones and filed those results with both
the FCC and the Colorado Public Utilities Commission earlier this year, 2017.
a. If yes, please describe at least one example.
i. Was the project completed on time?
- Yes
ii. Was the project completed within budget?
-Yes
6. Do you currently provide similar service to that proposed for this application (same technology,
speeds, etc.)? If yes, how long have you been providing that service and where is it provided? If
not, please describe how you will ensure the service is provided as stated in this application
-Yes, the company currently provides these (and other) services that are being proposed
within each wire center sub -project. The company continues to be a national and
international leader in broadband service.
7. Have you operated in or near the geographic area to be served? If yes, please describe the
area.
-Yes, the company has been operating in each of these wire centers for a significant
amount of time.
8. If you have filed for bankruptcy in the past 5 years, please provide a description of the reasons
for the filing and the plan to exit bankruptcy. After reviewing your summary, the Board may
require additional information and documentation.
-No.
9. If you have any outstanding judgments or lawsuits, provide a description of each. After
reviewing your summary, the Board may require additional information and documentation.
-The company does not have any outstanding judgments or lawsuits that would impact
our ability to implement and enable the proposed locations within this application. As a
publicly traded company we disclose material litigation and other contingencies in our
SEC filings which are available to review at http://ir.centurylink.com/sec-filings.
Required Attachments:
A. List of all addresses served by your proposed project. The list must be in an unlocked MS Excel
file and be on the form provided by the Board.
B. Project budget. The budget must be in an unlocked MS Excel file and be on the form provided
by the Board. You must provide supporting documentation for each line item (e.g. cost sheets
and estimates) electronically in MS Office or PDF formats.
C. A network or system map, such as a system block diagram or flow chart that includes each
infrastructure and technologies listed in question 2. a. of the Project Information section.
Provide all documents electronically in MS Office or PDF formats.
D. Design Plan and Documentation. Provide all documents electronically in MS Office or PDF
formats.
15
a. All engineering and consulting reports used to design the proposed broadband network.
b. FCC licenses or license application if the license is pending
c. Local permits or permit application if the permit is pending
-See Attachment B. No permits are currently pending. All engineering was done in house
and utilized the same criteria for implementing the CAF II program. Additional specific
information can be provided upon request.
E. Project Plan - List and describe all project milestones, anticipated completion dates and the
party responsible for completing the work. The Project Plan must be in an unlocked MS Word
file and be on the form provided by the Board.
-CenturyLink has not prepared a detailed construction plan. CenturyLink could provide
additional details for each wire center sub -project awarded. In addition to the
significant number of company -funded deployments over the last several years, the
company is currently implementing the CAF I1 program across Colorado (and the United
States) and the implementation of that program entails the same type of planning and
technology being proposed in this application. Upon award all sub -project locations
would be incorporated into the company's project and operational plans.
-As indicated above, the company currently operates in the areas where each of the
proposed wire center sub -projects is located. The proposed sub -projects have accounted
for operational and maintenance costs associated with the provisioning of service to
these locations. Additionally, because the company has already been accounting for the
operational costs of the existing service in these areas and by eliminating the majority of
the capital costs through a Broadband Fund grant, the contribution margin is
dramatically improved which allows for the company to sustain the operation of each
location.
F. Operational Plan for the first 5 years after project completion. Describe anticipated
operational costs in the project area during construction and for each of the first 5 years of
operation. You must clearly demonstrate in the plan your ability to maintain the infrastructure
in working order and the fiscal sustainability of the project (e.g. project operational costs are
not greater than revenue) for at least 5 years post completion. In the operational plan, provide
a detailed list all anticipated operational costs for the project area, contingency funds and
operating revenue. Provide all documents electronically in MS Office or PDF formats.
-See Attachment B. CenturyLink has the same type of obligation with the FCC's CAF
program which runs through 2020. CenturyLink has the capability, willingness and
interest in continuing to provide service beyond the 5 year minimum requirement. These
locations will be folded into our normal business operations and plans.
-As indicated above, the company currently operates in the areas where each of the
proposed wire center sub -projects are located. The proposed sub -projects have
accounted for operational and maintenance costs associated with the provisioning of
service to these locations. Additionally, because the company has already been
accounting for the operational costs of the existing service in these areas and by
eliminating the majority of the capital costs through a Broadband Fund grant, the
contribution margin is dramatically improved which improves the ability of the company
to sustain the operation of each location.
G. Maps. Each map must clearly cite the source data and assumptions used. Provide all maps
electronically in PDF and GIS [shape] file formats.
16
-See Attachment G for each wire center sub -project. Two maps were provided for each
wire center showing before and after speeds at the impacted locations.
a. A map demonstrating the insufficient availability of broadband service (25/3Mbps) in
the proposed service area.
b. A map showing the highest service speeds you currently provide in the project area
(prior to project implementation).
c. A map showing the highest service speeds you plan to provide in the project area (post
project completion). If service availability or service level (e.g. speed, latency) is not
uniform across the entire service area, you must show which areas will receive what
service (e.g. speed, latency). If the technology used results in varied or degraded signal
strength, you must show the assumptions made on the map and provide an explanation
why the assumptions are appropriate.
d. A map showing the wireless propagation, if using a wireless last mite solution. The map
must list data sources and all assumptions made (e.g. type and location of equipment
installed, signal strength, terrain limitations, building interference, etc.) If completed,
attach the wireless propagation study.
e. A map showing the speed availability of each location to be served. The equipment
utilized to enable the locations depicted on the map shall be provided in the
description of the work that will be done. The description shall include: data sources,
all assumptions made, including type and location of equipment installed, distance
limitations etc.
H. Letters of support
-Letters of Support will be submitted separately.
I. Commitments from community anchor institutions or public safety networks to utilize your
service if the project is funded. (If applicable)
-This application will be shared with the Anchor institutions identified in Attachment A.
J. All additional documentation and information you want the Board to consider when reviewing
this application.
-Attachment J contains the 2016 FCC/PUC CAF 11 Compliance filing (filed in 2017).
K. Pricing Exhibit
-Pricing and additional information is in Attachment K
L. List of Elected officials and other entities that were provided a copy of this application.
-See Attachment L
M. List of Officers and Executives
-See Attachment M
Send Applications To:
Mail a USB drive containing electronic copies of all application materials to:
Broadband Fund
Department of Regulatory Agencies
1560 Broadway, Suite 1550
Denver, CO 80202
or
Contact staff for alternative submission options.
17
Disclosures:
To the extent not prohibited by state and federal law, this application and all attachments are subject
to release under the Colorado Open Records Act, CRS §24-72-101, et seq and will be posted on the
Board's website.
Information provided in this application must be sufficient to establish all requirements and criteria for
fund distribution.
The Board may require additional information as part of the application and grant process.
The burden of proof is on the applicant to demonstrate that the proposed project meets the minimum
program requirements as established by the Broadband Deployment Board and in law.
Limited funds -are -available -for -distribution. Meeting -the -minimum -program requirements does -not
guarantee the Board will fund the project.
In making a funding determination, the Board may consider information other than that provided by
the applicant.
State law, Office of the State Controller policies, Department of Regulatory Agencies policy and Board
policy governs the awarding of funds. Applicants shall read and understand all applicable laws and
policies.
Grants agreements are for incremental cost reimbursement during project implementation and upon
successful completion. A grantee may not be reimbursed for any expenses made prior the execution of
a grant agreement with the State.
Applicant Signature:
I declare, to the best of my knowledge, that the information submitted in this application and all
attachments is true, correct and complete and that I have read and understand all grant requirements
and disclosures.
Zot
TitteY e v 1 t vCv h Date: ` 0 v iri—
18
Hello