We

1
Were TalkingFiber Optics, Baby!Things, they
are a changing
2
Tularosa Basin Telephone replacing copper with
FTTP and FTTN Press Release July 12, 2006

• we can build a network that provides our
  subscribers with a full range of advanced
  communications services today and feel
  comfortable that this same network will enable us
  to meet future subscriber demands."

3
Tularosa Basin Telephone replacing copper with
FTTP and FTTN Press Release July 12, 2006

• "TBTC is dedicated to bringing the same advanced
  services typically found in large metropolitan
  areas to the people of New Mexico's smaller,
  rural communities."

4
Tularosa Basin Telephone replacing copper with
FTTP and FTTN Press Release July 12, 2006

• "This newnetwork provides us with the
  opportunity to offer our subscribers bundled
  service packages that include high-speed data,
  voice, and video at very affordable rates."

5
Investment in the Community
TBTC is making a substantial investment (16
million) to totally rebuild our existing network.
We are investing for the future of our customers
and our community. We are working to Keep
Our Customers Connected!
6
Keeping Customers Connected!

• We're upgrading with
• Fiber to the Node (FTTN)
• Fiber to the Premise (FTTP)

7
Why Now?

• Single Source Provider Triple Play... Grand
  Slam
• Response to competition
• Financial health of TBTC
• Aging copper cable
• Undersized copper cable

8
Responding to Competition

• Cable TV providers
• High speed internet, LD POTS
• Satellite Providers
• High speed internet
• Wireless Providers
• High speed internet, LD POTS
• Voice over Internet Protocol (VoIP)
• LD

9
Responding to Competition

• New sources of revenue
• Bundled services
• Gains in efficiency mean bigger profit margins
• Maintain customer base
• New subscribers
• Win back customers

10
TBTC is committed to providing our customers with
new products and services so we can all keep
connected as technology changes!
11
Customer Service Issues

• Expect to field a lot of questions from our
  customers
• We want to make this upgrade as painless as
  possible
• TBTC will start notifying customers in early
  August
• Bill insert
• Frequently Asked Questions mailer

12
Questions Anyone?

• Who's paying for this?
• TBTC will make equipment upgrades to the
  customer's property at the company's expense
• TBTC will cover all construction costs associated
  with upgrades to the customer's property
• Subscription to upgraded services is optional
• TBTC will release a new price list/tariff for
  upgraded services closer to the completion of
  construction and service roll-out

13
Rates will NOT increase

• Enhanced services are OPTIONAL

14
The Details

• Services
• Network Upgrades
• Engineering and Construction
• Customer Impact
• Timeline

15
New Services!

• Higher speed data (internet)
• Video
• Broadcast
• Video on Demand (VOD)
• Local content
• Service Convergence

16
Network Upgrades

• Fiber to the Premise (FTTP)
• ADSL2 (Copper)

17
What's the difference?

• Fiber
• Standard ethernet based network, just like what
  all computers use today
• Gigabit speeds
• Copper
• Faster version of familiar DSL technology
• 20 megabits

18
What's the same?

• Quality of service
• We are committed to maintaining the same quality
  and reliability we are known for today
• Availability of service
• We are striving to making all services available
  to all customers, regardless of the access
  technology

19
Construction

• New cable placement
• Local streets
• Highways
• Aerial and buried
• Some customer premises will require on-site
  construction

20
Construction Crews

• TBTC Crews
• Contract Crews
• Licensed
• Bonded
• Insured

21
Engineering Fiber vs. Copper

• 60 of customer base will require fiber optlic
  loop connections
• 40 of customer base will remain on short copper
  loops
• Copper loops already capable of handling all that
  big data

22
Fiber Factors

• There are a few factors that determine new fiber
  placement
• Age and condition of existing copper distribution
  cable
• Distance from customer to TBTC switching
  equipment
• Other engineering and construction specifications

23
Engineering Challenges Fiber

• New service entrance cable
• Aerial or buried
• In some cases, new entrance cable may disturb
  customer's landscaping... TBTC will take pains to
  minimize any construction effects on customer
  property
• New wiring to computer for data connections

24
Customer Impact

• Construction
• Service Disruptions
• Cool New Services!!!

25
Customer Premise Construction

• Tailored to the unique requirements of each
  customer's property
• TBTC will schedule meetings with individual
  customers to discuss required construction on
  their property
• Comprehensive on-site assessment
• Minimize impact to landscaping
• Aesthetics are important too NID, UPS, Cabling

26
Customer Premise Copper

• No construction on customer property
• No new wiring
• Possibly new DSL modem

27
Customer Premise Fiber

• Access to the customer's property required
• New UPS unit to be mounted on wall inside the
  building
• New house wiring for current DSL customers may be
  required

28
UPS

• Uninterruptible Power Supply
• Locations with 100 fiber optic cables require a
  UPS because there will no longer be copper wires
  to carry low-voltage power from TBTC's equipment
  to the customer's equipment
• Low-voltage power is necessary to power
  electronics in the new Optical Networking
  Terminal (NID) and enable continued service
  operation during power outages

29
UPS

• Enables continued service for 8 to 10 hours in
  the event of an electrical power outage
• Manufacturer estimates power consumption for 30
  days at 24 hours per day of continuous heavy load
  to cost about 61 cents
• Monthly power consumption for a typical household
  is expected to be less than this estimate
• Actual power consumption will vary based on
  actual usage

30
UPS

• Needs to be plugged into an outlet inside the
  building with a wire ultimately connecting to the
  new NID on the outside of the building
• Replacement NID will ideally be located in the
  same location as the existing NID

31
Timeline

• Cloudcroft Exchange
• Starts within the next 30 days
• Phase I should be finished by the end of 2006
• Phase II should be finished during 3Q 2007
• Tularosa Exchange
• Starts by the beginning of 2007
• Should be finished by 4Q 2007
• Carrizozo Exchange
• Early 2007
• Early 2008

32
Have we missed anything...

• Contacts
• Nathan - Project Manager
• Jerimiah - Access Platform
• Lance - External Communications
• Eddie - Turn-up
• Mary Beth - Customer Service
• Richard Suggs - NID installation
• Voicemail at 585-FTTP (3887)