UC2B Expansion FAQ’s

RFP and Process Questions

Q.  Why are we talking about expansion now, when the first phases of UC2B are not yet complete?

A.  The timing of the competition we are entering is not under our control. The organization that issued the Request for Proposals (RFP) that we are responding to – Gigabit Squared (GB2) – would like to begin construction next spring, and in order to be able to do so, they need to select the six communities they will invest in this fall. They can then do the detailed engineering over the winter and be ready to start installing fiber in the spring.

Q.  Who has issued this Request for Proposals (RFP) that we are responding to?

A.  This RFP was issued by Gigabit Squared (GB2), which is an economic development corporation specializing in planning and implementation of IT-enable infrastructures http://www.GBPS2.com. Gigabit Squared (GB2) is comprised of telecommunications veterans who have banded together to create a new model for Broadband service delivery in this country.

Last year GB2 responded to a Request for Information (RFI) that was issued by a coalition of 37 research Universities called Gig.U, of which the University of Illinois was a founding member. This RFP is the product of their response to the Gig.U RFI. The principals in GB2 are familiar with UC2B and our community and have encouraged us to get organized and respond their RFP, which was released on May 23rd.  Our response is due by July 31st.

Q.  Who is eligible to compete?

A.  GB2 has limited participation in the RFP to the 37 members of Gig.U. GB2 believes that those communities are the most prepared to take advantage of this opportunity and successfully be their partners.

Q.  What are other Gig.U member communities doing?

A.  One Gig.U community has already negotiated a deal with GB2 outside of the RFP process. That deal may be announced later this month.  The University of Maine has announced a partnership with a local company to build a gigabit fiber network in their community.  The University of Florida has announced a partnership with a public utility in their community to build a concentrated gigabit fiber pilot project in the areas immediately surrounding their campus.

Q.  What is the role of Gig.U in all of this?

A.  Think of Gig.U as a matchmaker, that is getting its member communities engaged with private sector firms with the goal of building out gigabit networks in those communities. Gig.U’s philosophy is that communities like Champaign-Urbana are the ideal engines of innovation for the 21st century, and that having a gigabit infrastructure in place throughout those communities will enable the next wave of application development. Gig.U has successfully facilitated three partnerships thus far, and the winners of the GB2 RFP will add six more to the total.

Q.  How will this RFP process work for our community?

A.  We are seeking commitments now for households and businesses. The more commitments we have by July 30th, the better our chances are of winning this competition. If our community is truly interested in having an open-access fiber infrastructure available throughout our community, this is everyone’s opportunity to help make that happen.

Should we be one of the six communities selected, there will be a negotiation between Gigabit Squared (GB2) and UC2B over the terms and conditions of what that partnership might look like. The UC2B Policy Committee is considering a list of issues that it would like to have addressed in that negotiation, and both city councils will also have input into that list.

Assuming that an agreement can be reached, GB2 would begin engineering over the winter and start construction next spring. It could take as many as 4 years to build out fiber to every home and business within the corporate limits of Urbana, Champaign and Savoy.

Q.   What about homes and businesses not within the corporate limits of Urbana, Champaign or Savoy?

A.   As all of the fiber will be installed underground in the rights-of-way that belong to those three entities, construction will be limited to the areas in which those entities own right-of-way. In the unincorporated areas, typically individuals own the right-of way, and for GB2 to gain access to that right-of-way could be time consuming and possibly expensive. GB2 is interested in getting this fiber network built as fast as possible and have it generating revenue. Right-of-way negotiations with hundreds of private property owners work against those goals.

Q.   Is there any hope for residents or businesses in those unincorporated areas to get connected to GB2’s fiber network?

A.   Yes, but it will take time to sort through all of the right-of-way issues. It is unlikely that anything could be settled in terms of access to right-of way before July 31st when our RFP response is due.

Q.  What are our chances of being one of the six winners of this RFP?

A.  Our chances are good, but a lot will depend on how many households and businesses commit to having GB2 service by July 30th. Gigabit Squared (GB2) is interested in our community for several reasons.  The fact that we have been organized and concentrating on developing Big Broadband through UC2B for three years is a plus. The fact that we have UC2B fiber backbone rings built throughout the community is a plus. The fact that the University’s Engineering College and Computer Science Department are among the nation’s best is a plus. In addition to all of the above, GB2 is looking for some local matching funds for capital construction and a solid base of committed customers. Our pre-commitment plan provides our community a way to step up and provide both at very little risk.

Q: What if C-U does not win the competition?

A: UC2B will seek other private partners to meet the same terms and timeline. If not, commitment payments will be fully refunded.

The Pre-Commitment Plan

Q.   What are the mechanics of how the commitment plans work?

A.   A household that is willing to commit to a year of purchasing services from GB2 over their fiber network should go on-line and fill out the commitment form and either pay $100 through PayPal or send in a check for $100 – to arrive by July 30th. That gets your home location on the list. If you are a business owner or manager, the commitment fee is $200, but the process is the same.

Q: Who is eligible to participate in this expansion commitment?

A: Any residence, business or organization located within the city limits of Champaign, Urbana or Savoy is eligible.

Q.   What happens after a home or business is signed up?

A.   All of the incorporated areas of Urbana, Champaign and Savoy have been divided into 120 fiber service areas of roughly 450 possible customers each. These service areas will be defined by using logical boundaries, such as Interstate highways, railroad tracks, waterways, and major streets. Additionally the service area boundaries will factor in homeowner’s association and neighborhood association boundaries where practical.

The 30 service areas that have the highest density of commitments will be built in 2013, so encourage your neighbors to also sign up. The next 30 service areas (when ranking them by commitment density) will be built in 2014, the next 30 in 2015 and the last 30 in 2016.

You will be notified in January of the year when your service area will be constructed that your installation payment will be due by March 31st of that year.

Q.  Can I still commit to the expansion after July 30th of this year?

A.   Absolutely, you can commit right up until March 31st of the year that your service area will be constructed. There are no guarantees that the same discount deal will be available after July 30th however.

Your commitment at a later time will not help our community win this competition. There is no guarantee that we will win this competition in the first place, so if you are interested in having open-access gigabit fiber installed to your home or business, please make your commitment by July 30th.

Q.   What if I do not want to take any chances on getting fiber installed in 2013? Is there a way to expedite my installation?

A.   Yes, you can choose an expedited option for your home and/or your business. The expedited options cost more up front, but they guarantee that those locations will be installed in 2013. As with the standard options, you get your commitment and installation fees back as service discounts over the first 60 months of service.

Q.  How do the service discounts work?

A.   If you commit by July 30th to the Standard Consumer installation, you will eventually pay a total of $500 in commitment and installation fees. For the first 60 months that you subscribe to a GB2 service of any kind, you will receive an $8.50 per month discount. That adds up to a total of $510 in discounts.

If you commit by July 30th to the Expedited Consumer installation, you will eventually pay a total of $2,500 in commitment and installation fees. For the first 60 months that you subscribe to a GB2 service of any kind, you will receive a $42.50 per month discount. That adds up to a total of $2,550 in discounts.

If you commit by July 30th to the Standard Commercial installation, you will eventually pay a total of $1,000 in commitment and installation fees. For the first 60 months that you subscribe to a GB2 service of any kind, you will receive a $17.00 per month discount. That adds up to a total of $1,020 in discounts.

If you commit by July 30th to the Expedited Commercial installation, you will eventually pay a total of $7,500 in commitment and installation fees. For the first 60 months that you subscribe to a GB2 service of any kind, you will receive a $127.50 per month discount. That adds up to a total of $7,650 in discounts.

Q. I’m wondering why the monthly service fees in the expansion areas are higher than in the original grant-funded areas? The 8.50/month discount still means I would be paying $1.50 more per month than your original customers for the 20/20 Mbps Consumer service , in addition to my $500 outlay for installation. Why is that?

A. The original UC2B fiber construction is funded by two grants that do not have to be paid back. This opportunity for expansion is through a private firm – Gigabit Squared – that does need to recapture its investment and make a return on it. Further, in the grant-funded areas, the University is supplying operational support during the start-up phase. The Consumer and Commercial service pricing that Gigabit Squared has proposed is actually less than what some consultants have suggested that UC2B would need to charge for services if we were to self-finance the $50 million expansion to build fiber to the rest of the community.

Q. What if I pledge now at one address, but then I move to another address across town before my original address is built to? Does my pledge move with me and apply to my new address?

A. Yes it can, but you will need to tell us about the move so we can update our records. If you move into an area that is already built out with Fiber-to-the-Curb, this could speed up your install.

Q.   What happens if I move out of the area or stay in town but decide I no longer want to participate and have my commitment fee returned?

A.   A new occupant of your home or business location will be able to use the remainder of the discount you earned through your construction commitment. You can withdraw from this program at any time and you will receive a 100% refund of your commitment fee should you ask for it or should no deal be struck within 18 months.

Q: What if I pay the Expedited commitment fee but then my neighborhood is chosen in the 2013 construction wave based on having a high density of pre-commitments?

A: Any difference will be credited to you, reducing your installation fee. For residents who paid the $500 expedited commitment fee, this reduces the installation fee to $0.

Q.   What happens to the commitment money if Gigabit Squared does not select our community or they do, but we cannot work out a mutually satisfactory deal?

A. While you can rescind your commitment and get your money back at any time, UC2B will pursue other options to get an open access fiber network built throughout the entire community if the deal with Gigabit Squared does not work out. We would prefer that you leave your commitment funds in the account for 18 months, in order that they can be used as part of a package to help attract a different provider that would offer a similar set of services and discounts. If there is no deal struck within 18 months, all commitment fees will be returned.

Q.   What if my homeowners’ association or condo association wants to sign up?

A.   There is a plan specifically for that. If your association will commit $500 for every unit in the association, you can then just sign up for the Standard $500 Consumer installation, but you will be installed in 2013 – as if you had paid the Expedited fees. You will get the Standard Consumer discount. The association will not receive any discount or rebate.

Q.   I am potentially interested in the Expedited commitment option, but I am confused about one particular aspect of the pricing. The Expansion page states that signing up for the Expedited commitment results in a $42.50/month service discount for 60 months. However, the 20 Mbps service option is only $30/month. How are these numbers reconciled?

A. We are thinking that if you are interested in the Expedited option that you are probably interested in more services than just the $30-a-month 20 Mbps Internet service. We do not yet have details about what we will see in terms of services from Gigabit Squared for telephone, television, remote backup, home security and a host of other areas.  If at the end of the day, all you really want is the $30 Consumer Internet service and you paid for Expedited Consumer installation, then your period of the $30 monthly discount would be extended to 85 months. The dollars work out exactly the same. Gigabit Squared plans to have a compelling array of other services available, so spending the extra $12.50 each month might not be too hard, but that will be your decision. You will not get a $12.50 check each month for being a customer if you opt for the Expedited installation and only the 20 Mbps Consumer Internet service.

Q. Suppose fiber service has begun, and I receive several months of discounted service, but have not reached the total $2550 discount.  Can I cancel the service and have my commitment fee returned immediately, less any amount already paid in discounts?  Does it matter whether I paid by check or another method?

A. When you enroll, you commit to take one year of service. If you cancel the service after the first year, you will forego the remainder of your discount. However if you move at any time, the person you sell your home to can benefit from the remainder of your discount. The installed fiber will be an asset in selling your home and the remaining discount period will add to that value. Since there will not be any “refunds”, your manner of payment does not matter.

Q.  According to the solicitation for the fundraising for the UC2B expansion, there will be $510 in savings on monthly Consumer service – an $8.50/month discount for 60 months for the standard Consumer commitment.  Will this savings be attached to the home of the person paying for the expansion or to them personally?  Over a five year period people sometimes move, and would the benefit remain with the home and be part of the home’s value or would the benefit follow the investor to another location, and thus be unavailable if they move to an unwired neighborhood?

A. If you commit funds and move somewhere else in Urbana, Champaign or Savoy before construction, your commitment can move with you to your new neighborhood. Before construction, you also always have the option of a refund of your commitment fee. If you move after fiber has been constructed to your home but before you have received 60 months of discounted service, the discount remains with your home and can be used as a factor in determining your sales price.  If you have 30 months of the $8.50 service discount left, that should be worth $255 to the person buying your home, (if they care about having access to an open-access fiber network.)

Services

Q.   What does “open access” mean and how does that affect the services that could be available over this new fiber network.

A.   “Open Access” means that the operator of the network must make the fiber and electronics infrastructure available to other service providers at consistent and fair wholesale prices. There are several ways this can be achieved, but the goal is that you as a consumer should have choices of whom you want to purchase your Internet connectivity from, choices of whom you want to purchase telephone services from, choices of whom you want to purchase television services from.  That list goes on and on to include security services, data back-up and off-site data storage, energy monitoring, remote health care services and other services that are waiting to have a gigabit infrastructure available to be invented.

Every service provider will share the same fiber infrastructure and must compete for your business on service quality, price and customer service. The owner of the cables coming into your home will no longer have you locked in as a customer, just because it owns the cable.

We do not know today who those additional service providers will be or the details of their services, but we do know that they will be competing for your business and you will have real choices of service providers.

Q.   What Internet services does Gigabit Squared (GB2) intend to offer?

A.   Those Internet services are listed on the UC2B expansion web site. There are services designed for consumers and services designed for commercial customers.

Q.   If I run a small business from my home, do I need to sign up for the commercial services?

A.   Customers may choose either Consumer or Commercial grade Internet services. Commercial Internet services will allow for more than one public IP address and will also include Service Level Agreements (SLAs) and Quality of Service (QoS) on the network connections.

Except where noted otherwise, Consumer services are “best effort”.

Q.   Will Gigabit Squared (GB2) offer a landline telephone service?

A.   Yes they will. It will use Voice over Internet Protocol (VoIP) technology, which is also used by Comcast and AT&T on their Xfinity and U-Verse services. If you are a GB2 Internet customer, you will also be able to use national low-cost services such as Skype and Magic Jack. Those services both require good upstream bandwidth to work well and you will have good upstream bandwidth.

Q.   What television services will Gigabit Squared (GB2) offer?

A.   The broadcast and cable television industries are in a state of transition today. The Internet forever changed the music and publishing industries, and many believe that traditional television programming and distribution will be the next industry to evolve to meet the demands of an increasingly connected society. Whatever Gigabit Squared could put in writing in July of 2012 about their plans for television services in July of 2013 will be outdated long before then. The industry is changing that quickly.

Between now and next July, the home video market is expected to further transition in the direction of Over-the-Top (OTT) services, where consumers have a more direct relationship with content providers, have more ability to pay for only what they want to watch and can watch “television” on a variety of devices, including smart phones, tablets, computers and of course televisions. If you purchase programming from the NCAA, Netflix, Hulu, Vudu or the Apple iTunes store, you are already part of the OTT movement.

How fast OTT will evolve over the next 12 months is not known, but Gigabit Squared plans to offer video services on the leading edge of that OTT transition. At the same time they also intend to offer a “traditional” cable TV-like service.  If you have Comcast, U-Verse, Dish Network or Direct TV today, you and your remote control will feel very comfortable with Gigabit Squared’s “traditional” video service, and you can expect Gigabit Squared’s television services to be “competitively priced.”

Q.   What other services can we expect to be available?

A.   On the consumer side, without looking too deeply into a crystal ball, it’s easy to predict that energy monitoring and conservation services will be available. It is also likely that there will be remote health care applications that allow you to have interactive consultations with your doctor or nurse practitioner from the comfort of your home.

There are security companies that will help you monitor your home or set your thermostat while you are away. Local churches have started to discuss webcasting their weekly services, and perhaps using web video-conferencing tools for bible study groups. With symmetric bandwidth, you could have high-quality video discussions with your children’s teachers, or your children could have interactive video help with their homework.

For businesses, having off-site back-ups of critical business data is increasingly important. Having symmetric bandwidth allows that to happen much faster than current alternatives. Business use of video conferencing is currently limited by the quality of the video and audio, which is impaired by low-bandwidth connections. When customers and business partners all have access to symmetric Big Broadband, even low-cost video conferencing systems can produce high quality images and sound. Businesses also have security concerns that fiber-based services can help alleviate.

At the end of the day, we do not know what applications will be invented over the next 20 years in a garage or basement somewhere in our community or elsewhere. Twenty years ago we would have never predicted the applications that we have access to today, but the fiber infrastructure we are seeking to build in our community will facilitate the development and deployment of new applications that we cannot begin to imagine today.

Q.   Could AT&T or Comcast deliver their services over this new fiber infrastructure?

A.   Yes they could and they would be welcome to do so. However, typically their business models are tied to owning and operating the infrastructure that delivers their services. However, that model is more common in this country than the rest of the world.

In other countries it is not uncommon for one company to manage the telecommunications infrastructure that multiple companies then use to deliver services. That transition has already happened in the electrical power industry in Illinois. Some power companies own and operate the electrical power distribution system, while other companies generate the electrical power. Our community will be ready for that evolution in telecommunications when it happens.

Q. Can I run a server on a Gigabit Squared Internet connection?

A. Yes you can run a server or servers on either the Consumer or the Commercial services (as long as you are serving “legal” content – no child pornography and such.) There are no data caps. The Consumer services come with a single public IP address. With the Commercial services, you can access additional public IP addresses. Depending on the load on your servers and how you utilize IP addresses, one or more of the services should meet your needs.

Q. Does the 20 Mbps Consumer Internet for $30/month option include unlimited data? Can customers watch Netflix and/or do other streaming without data charges?

A. There are no data transfer caps or extra charges with these services. You can watch Netflix until you have viewed their entire library and your monthly rate will not change because of it.

Q. Will Consumer IP addresses be static?

A.  Yes. You will get one static IP address with the Consumer services. It will be assigned to you via a sticky DHCP server.

Q. I’m assuming this is all being built on IPv4. Does GB2 have plans for IPv6 and does that change the way IP addresses will be allocated to residential customers?

A. We are sure they have IPv6 plans but we will not get into that level of detail until after we are selected as one of their six communities.

Q. Will the router/”modem” that connects gigE to fiber allow my server complete Internet access? I’m accustomed to ISP-provided gear forcing itself into a NAT role and limiting how the network can be used.

A. The CPE we are using today is actually two boxes. The first is an Optical Network Terminal (ONT), which take a single strand of fiber and gives you four gig Ethernet ports you can connect to. Each port could have two separate VLANS for a total of  8 possible VLANS. The second box is an inexpensive Wi-Fi gateway that also gives you 4 Gig ethernet ports. Your one pubic IP address will be assigned by “sticky” DHCP to port one of the ONT and typically grabbed by the gateway, which will then do NAT for your wired and wireless devices. With our current hardware, you could substitute your own gateway that you configure and control or simply plug your server directly into the ONT.  We do not know for sure what CPE hardware Gigabit Squared intends to deploy.

Q.  Say I sign up and my house gets a fiber connection in 2013. The network subsequently grows and competition flourishes. If I want to switch ISPs in 2015, should I expect to lose the remaining three years’ monthly rebates that would otherwise pay back my initial investment? I’m not clear on whether this is tied to use of UC2B or maintaining a relationship with a specific ISP.

A. The service discounts are tied to just GB2 services. They expect to have wide variety of services however, and the service credit could be applied against any of them, not just Internet access.

Q. Will there be bandwidth usage monitoring and caps?

A. There are no data transfer caps on any of the proposed services. A few of the services have a guaranteed minimum speed or a peak average speed, and some measuring and monitoring is done as part of the administration of those rates, but no monthly data transfer caps are part of any of the plans.

Q. Can customers run web servers or other internet-connected services for personal use?

A. Absolutely. That is one of the benefits of having symmetric connections, you can be a producer and provider of information as well as a consumer. Most standard terms of service require that you do not serve “illegal” content – such as child pornography – but otherwise knock yourself out. We are also not interested in being a party to copyright lawsuits, so be smart about what you do with copyrighted materials. We will comply with all lawful requests for information in copyright disputes.

Q. Can customers run web servers for commercial (home business) use?

A. Yes. We want your home business to be successful and we encourage such use (again for lawful purposes.) With the Consumer services you only get 1 public IP address, which may be enough for your home business and other activities. If you need more than 1 public IP address, hopefully your home business is profitable, because then you end up in the Commercial pricing tier, which is more expensive. There are also other advantages to the Commercial services, such as Service Level Agreements (SLAs), Quality of Service (QoS) and lower over-subscription ratios.

Q. Would we be able to change our service tier without penalty (increasing from 20 Mbps to 50 Mbps, or vice versa)?

A. Yes you can change your service levels without penalty – hopefully no more often than once a quarter. We want you to purchase the right amount of bandwidth for your needs. Unless you know for sure that you need 50 Mbps, it makes sense to start lower and increase your bandwidth only if experience suggests that you should. We want you to be a customer because you want to be a customer, not because we have a gun to your head.  There might be a nominal one-time charge to cover the time it takes to reconfigure your connection and change your billing, but it would not be large enough to qualify as a “penalty”.

Q. What would it take for our HomeOwners Association (HOA) to pledge a commitment rather than each resident of the neighborhood?

A. The plan for HOA’s is designed to have the HOA to partially fund the fiber to the curb and get your installations scheduled in 2013, but then it would still be up to each individual household to commit $500 (total) if they wanted service.

The HOA pays $500 for each unit in the HOA If you has 300 units that would be $150,000. That puts the entire HOA on the 2013 construction schedule. Then each household that wants the service goes through the regular commitment process and send in $100 before July 30, and then $400 by March 31, 2013. The homeowner gets the regular service discounts. The HOA does not get any sort of discount or rebate for its investment.

Q.  Are the service discounts for Consumer services included in the prices? For example, if I commit for $100, then would my service price be $21.50 per month for the 20 Mbps Consumer service?

A.  All pricing shown is before any service discount. You calculated the net rate correctly for the 20 Mbps Consumer service with a $100 Commit fee and $400 Installation fee. The $8.50 service discount would apply for 60 months – yielding a net serve rate of $21.50 a month.

Q.  As a Condominium Association with 42 units (in duplex configuration) is there some method that we can use to contract for the service as an association, or will each individual property owner need to decide on a commitment and proceed?

A. We are putting the final touches on a duplex/apartment pricing package. It is looking like if each duplex owner will commit to 1 year of service for both halves of the duplex, that we will install into both halves for a commitment fee of $80 per unit and an installation fee of $320 per unit. That $400 total would be a 20% discount from the regular individual Consumer fees.  The monthly service discount is then $6.80 per month for 60 months.

If you wanted to be sure that your installations all happened in 2013, there is a program in which your condo association would pay $500 per unit – $21,000 – and then fiber would be brought to the curb of each duplex. Each duplex owner would still need to spend the $400 per unit $800 per duplex) total and would get the $6.80 monthly service discount on each of the two bills. The condo association would not get any credit for the $21,000 that was spent to move to “the front of the line.” Not all duplex owners would need to subscribe in this model. It would be available to all in 2013, but each could make an independent decision on subscribing.

Competition Partners

UC2B is a consortium of the cities of Champaign and Urbana and the University of Illinois. UC2B is facilitating C-U’s entry in this competition.

Busey Bank is holding the commitment funds in escrow during the competition.

Gig.U is a coalition of 37 universities working to bring world-class Internet to their communities. Gig.U facilitated this competition to create public-private partnerships.

Gigabit Squared is a private company that partnered with Gig.U to conduct the competition and oversee fiber construction and operations in the 6 winning communities. Gigabit Squared is using an open access model to deliver competitive Internet, TV, phone and other services from a choice of other private providers.

Apartment & Commercial Property Owners

Property owners or managers can submit pledges for a rental property or for an entire apartment or commercial building. It increases your property value to be able to offer fast, fiber optic Internet to every tenant. Contact us at expansion@uc2b.net for details.

Homeowners’ Associations & Condo Associations

When possible, all of a homeowners’ association, a condominium association or a business park will be grouped into a single service area. Service area maps will be released on the UC2B web site at www.uc2b.net on July 16, 2012. Group pledges can be made by commercial property managers, as well as homeowners’ and condo associations. Contact us at expansion@uc2b.net for details.

Questions? (217) 366-UC2B or expansion@uc2b.net