Go4objectives

May 20th 2016

Our File: Bowen Island Open Access Fibre Network Business case

Bowen Island Municipality

Attn. Michael Kaile, Councillor
981 Artisan Lane
Bowen Island, BC V0N 1G2

Dear Michael,

RE: Business case development

Go4objectives is pleased to assist Bowen Island Municipality in the development of a business

case for an Open Access Network through the community.

Such a network, connecting homes with fibre optic cables, has a projected life time of 30 years
and will be able to handle today’s and any future bandwidth requirements.

An open access network allows residents to choose any service provider operating the network,
resulting in competition, and therefore better pricing and performance.

The projected revenues, investments and operating cost in the business case will be based on
similar deployments in British Columbia.

Competitive service providers (Urban Networks, AEBC) have shown a interest to operate a
Fibre to the Home network (FttH). If available a letter of intent of these companies will be
included in the business case.

The municipality would finance and (have) build the FttH network and lease the fibre cable to
the Internet Service Providers (ISP).

The proposed business case could be financed by grants and loans. The aim of the business
case is to pay back the loan within the lifespan of the fibre optic cables (30years).
 Fibre to the Home Business case Proposal

Below are the topics I would suggest we cover in the business case:

Subject Brief Description

Goals What will be achieved short and long term
Benefits and beneficiaries Who will benefit from the initiative
Business Models options Discussion about the options
Typical telecom network architecture High level network design
Business Options and Analysis Pro and con’s business options
Market Analysis:
Market Size Network users and service providers
Market Trends Telecommunication usage trends
High level cost comparisons Comparing incumbent and private telecom cost
Competitive Analysis Current competition in the city
Product positioning Differencing of the product
Target Market Market segments for the product

Projected minimum sales over 30 Required sales

years
The FttH product description Fibre to the Home
Financial analysis:
Financial assumptions Unknown’s of the business case
Revenues Revenues break downs
Cost of sale FttH Cost of implementing the product
Investments FttH Required investments
Break even analysis FttH Conditions for break even
Sensitivity analysis What if Scenario’s
Risk Management Strategy Mitigation strategies
High level project plan: How to implement the business case
Task break down Work break down structures
Operations Management Plan Operating and business processes
Deployment locations Where to start selling
Governance Model How to integrate the business in the municipal
structure

To ensure the support of the business case by key city staff several iterations are planned to
produce a document format and content that meets the requirements for council.

Go4objectives Ltd, 1880 Peters Road BC V7J1Y9, Canada

E: rcoert@go4objectives.com T: 604 767 7498 Page 2
 Fibre to the Home Business case Proposal

Project cost:

Project: Business case development, Bowen Island Muncipality

Estimated Fee's
Deliverable Allocation of fees Hours $150
1 Gathering information for the business case 10 $1,500
2 High level design and network costing 40 $6,000
3 Preparing business case document draft 10 $1,500
4 Preparing financial drafts 20 $3,000
5 Review documents with city staff 4 $600
6 Customising business case 10 $1,500
7 Presentations and meetings 5 $750
Sub Total 99 $14,850

Disbursements
Reproduction, Printing & Graphics $0
Deliveries & Communications $0
Travel, Mileage and Miscellaneous $0

Price (excluding taxes) $ 14,850.00

Go4objectives Ltd has as well the experience to set up the business operations for an open
access network.

Please let me know if this proposal is agreeable to you.

Yours truly,

Roel Coert
Principal
Go4objectives Ltd

Enc: Background Go4objectives and Roel Coert

Go4objectives Ltd, 1880 Peters Road BC V7J1Y9, Canada

E: rcoert@go4objectives.com T: 604 767 7498 Page 3
 Fibre to the Home Business case Proposal

Go4objectives ltd projects summary:

Requirements, design, budgeting, RFP, project management of fibre to the home networks
Requirements, design, budgeting, RFP, project management of fibre to the premises networks
Requirements, design, budgeting, RFP, project management of data centre and co-location
spaces.
Improved the quality of fibre inlay methodology to meet municipality engineering department
requirements with micro duct vendors, civil designers and contractors.

Go4 Objectives back ground:

Go4Objectives has been instrumental in the start-up of competitive telecommunications
companies in both Europe and Canada. Since 2004 Go4objectives has been working with
municipalities to implement City wide fibre optic networks. Starting in Europe in 2003 and 2004,
Go4objectives Ltd. has designed, build and operated with success a new municipal business
line: Open access Fibre optic networks. Go4objectives Ltd. identifies and analyses the risks and
benefits with the associated business models and will provide a broad and hands on expertise
ranging from business models, fibre architectures, co-location design and operational
implementation, all focused on municipal core competencies.

Roel Coert Back ground:

Roel Coert is a seasoned project manager helping teams deliver large, state of the art,
information and telecommunication technology services.

Roel worked for major Information Communications Technology firms throughout Europe, such
as cable and Telco companies similar to Shaw and TELUS, always at the cutting edge of new
technology and mass consumers.

He led the engineering team of one of the first commercial Internet dial up network in Europe,
directed a team connecting the first customers on broadband Internet over the cable, and with a
team, designed and build the first ever open access Fibre to the Home network, offering VoIP,
TVoIP, remote storage and internet access from multiple service providers.

After working with the city of Kamloops (Fibre to the Premises business case), TELUS (on the
Fibre to the Home trials), he has lead a team, in engineering, building and operating the first
Canadian open access optical fibre network for the city of Coquitlam in British Columbia. He has
designed and implemented a 100 m2 green datacentre which is now populated with 22 water
cooled cabinets rejecting the heat in a municipal pool.

Roel has been asked by the cities of Kelowna and Grand Forks to do Strength, Weakness,
Opportunities and Threat analyses for the deployment of a municipal open access fibre network.
He has been working as well on full business FttP cases for the District of Maple Ridge, the city
of Campbell River and a FTTP and FTTH business case for the city of New Westminster both in
British Columbia, Canada.

He is currently implementing the FttP business case for the city of New Westminster.

Roel holds an engineering degree in telecommunications and a master’s degree in business

telecommunications.

Go4objectives Ltd, 1880 Peters Road BC V7J1Y9, Canada

E: rcoert@go4objectives.com T: 604 767 7498 Page 4