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California State University, SacramentoWideband Broadcasting

Internet Technology Service(WBITS)

Spencer A. FreundAVP, Telecommunications

CSUS

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The Plan

• To convert 3 of the 4 ITFS channels at CSUS to Two-way digital data

• Initially to provide data service to on and near campus penetration (within 3-5 miles)

• Eventually extending service to 15 miles from the campus

• Provide this service to the CSUS “family” faculty, staff & students.

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Purpose

Driving force – to provide academic and

administrative programs to enhance teaching, learning, personal productivity, and

access to resources in a cost effective and efficient

manner.

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Outcomes of a University Owned System

• Penetrates almost every corner of the campus in ways that cannot presently be supported.

• Allows for roaming from one zone to another

• Supports full transparency from the classroom, to the campus, to the workplace, to the home

• Provide a higher level of service at a lower cost.

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Outcomes of a University Owned System (continues)

• Caters to the needs of the educational community.

• Extends the campus wired high speed network

• Offers “brand” recognition• Supports portability &

mobility

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Deployment Plan

• Initially Three antennas located on the CSUS campus• Would provide coverage on

campus and to within 2-5 miles

• This would provide coverage to approximately 7,000 students, faculty and staff

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Deployment Plan (continues)

• As client demand increases – to place additional sites in the community- Eventually (2-3 years) reaching out 15 miles.• This would cover 90% of the

30,000 CSUS “community” population (see chart next slide)

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Market Area

WBITS Service Area

Roseville

Davis

Woodland

Elk Grove

CSUS Population within < 18 miles

Students: 6,335Faculty & Staff: 803

CSUS Population within 4 – 7 miles

CSUS Population within 3-4 miles

Students :7,197Faculty & Staff: 929

CSU, SacramentoOn Campus daily populationStudents: 30,000Faculty & Staff: 2500

Faculty, Staff & Students: 7,500

All numbers are estimates based on 2002 information

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Management Plan

Assoc iate Vice-President for Academic Affairs/Telecommunications

Assoc iate Vice-President for Academic Affairs/Telecommunications

Director of University Computing and Communications Services (UCCS)

Director of University Computing and Communications Services (UCCS)

UCCS Manager of the Operations Systems and

Network Support

UCCS Manager of the Operations Systems and

Network Support

Wireless Project Operations AnalystWireless Project Operations Analyst

Wireless Project Program Manager

Wireless Project Program Manager Campus CommunityCampus Community

Future Positions to be added•Marketing and Sales Promotion Manager

•Student Assistants

•Administrative Analyst

•Data/Radio Communication Network Analysts (2)

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Marketing & Sales • To provide a service that is

superior in speed, convenience, and price to other available wireless operations,• Greater and easier access to

campus IT Resources• Increased bandwidth• Better functionality

• Support for voice• Support for data• Support for video

• Fully integrated into the campus high speed backbone

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Revenue Generation• Initial startup and deployment to a

core of 100 subscribers @ $20 per month (then assumed faculty/staff $34K yr/1, $85k yr/2 & $134K yr/3)

• Rollout to local population of approximately 1000 subscribers

• Over a 2 -3 year period marketing to all constituents within a 13 – 15 miles radius.

• The plan assumes a 25% take rate of constituents.

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Revenue Generation - Projected

WBITS Revenue ProjectionsBased on Subscriber Base (Estimated)

Students Faculty & Staff

Period Subscribers

Gross Revenue per month Subscribers

Gross Revenue per month

Total Subscribers

Total Gross Revenue per month

Oct-Dec 2004 0 $0 100 $2,000 100 $2,000Jan-05 500 $10,000 250 $5,000 750 $15,000Feb-05 750 $15,000 300 $6,000 1050 $21,000

Mar-May 2005 1000 $20,000 300 $6,000 1300 $26,000Jun-Aug 2005 500 $10,000 200 $4,000 700 $14,000

Sep - Dec 2005 3000 $60,000 330 $6,600 3330 $66,600Jan-06 3000 $60,000 330 $6,600 3330 $66,600Feb-06 3630 $72,600 400 $8,000 4030 $80,600

Mar-May 2006 3630 $72,600 400 $8,000 4030 $80,600Jun-Aug 2006 750 $15,000 400 $8,000 1150 $23,000

Sep - Dec 2006 4500 $90,000 500 $10,000 5000 $100,000Jan-07 750 $15,000 500 $10,000 1250 $25,000Feb-07 5000 $100,000 800 $16,000 5800 $116,000

Mar-May 2007 5000 $100,000 800 $16,000 5800 $116,000Jun-Aug 2007 1000 $20,000 800 $16,000 1800 $36,000

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Revenue Projections

• Estimated Revenue projections• Year 1 = $ 142,000• Year 2 = 708,000• Year 3 = 1,014,000

• Total Revenue projections – First three years• $ 1,864,000.00

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Equipment Costs

• Initial Start-up equipment and installation = $ 350,000.00

• Subsequent additional site costs of $225,000 each

• Over three years equipment cost approximately $1,025,000.00

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Operational & Startup costs• Projected operational costs

• Year 1 = $154,140• Year 2 = $243,934• Year 3 = $302,530

• Capitol Investment - first 3 years• $1,025,000.00

• Total Expense Outlay – First three years.• $1,725,604

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Looking good – RIGHT?

• Expenses• $ 1,725,604

• Revenues• $ 1,864,000

•Profit•$ 138,396.00

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Wrong!• This plan assumes no changes in technology.• There is no equipment refresh in the plan.

• Technologies changing very rapidly.• Equipment becomes obsolete very quickly• Hardware is very expensive. Client

procured cards are also expensive. • Assumes no competitive thrust from larger

better financed providers.• Does not provide for costs to provide ITFS

video services through another means.• Business is not a “core competency” of the

university.• Cell site development wasn’t included.

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California State California State University, SacramentoUniversity, SacramentoWideband Broadcasting Wideband Broadcasting

Internet Technology Internet Technology ServiceService(WBITS)(WBITS)

Spencer A. FreundSpencer A. FreundAVP, TelecommunicationsAVP, Telecommunications

CSUSCSUS