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06-09-14-R
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06-09-14-R
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9/9/2014 3:55:06 PM
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CBG Communications, Inc. <br /> <br /> 4 <br /> <br /> <br />Interconnection – PRISMA <br /> <br />Another technology based need that is supported in the Buske Report and CBG’s <br />Technical Report is that of interconnection with entities outside of the NSCC service <br />area. Such interconnectivity exists today via a network labeled as the PRISMA network. <br />This network provides interconnection of video services for entities outside of the NSCC <br />service area to receive video programs from CTV and it allows CTV to use video from <br />outside the NSCC service area. It also provides interconnection with other I-Nets for <br />voice and data communications purposes and sharing between government and <br />educational entities. Comcast, in its Proposal, has agreed with CBG that the current <br />PRISMA Interconnect is in need of an upgrade. Comcast proposes to use its <br />Converged Regional Area Network (“CRAN”) to replace the PRISMA equipment. <br /> <br />However, Comcast only says it will replace the existing equipment at its headend and <br />hubs and does not specify that CTV, the NSCC or member Cities can use it at no cost <br />for all purposes. The Proposal states that <br />“But additional add/drop locations in the future will be billed (or credited) at <br />$1,675.80/month/location”2. <br />There is no mention of an initial connection to the Interconnect and it is unclear as to <br />whether the Interconnect can be used for data or only PEG Access video sharing with <br />other entities. <br /> <br />QSI Report – I-Net Valuation <br /> <br />Comcast, in an effort to value the I-Net and to create a basis for charging the NSCC and <br />its Member Cities for I-Net utilization, obtained a report from QSI Consulting, Inc. (“QSI”) <br />that places a value on the I-Net as it exists today. The QSI Report makes several <br />incorrect assumptions as its basis for valuing the I-Net. First, QSI’s Report uses <br />examples from the Twin Cities and other locations throughout the Country to compare <br />this I-Net to other largely commercial networks. Comparisons to commercial networks <br />are inapplicable to the NSCC I-Net. The use of the NSCC I-Net is noncommercial and <br />was built and maintained as a public benefit. <br /> <br />The second flaw in the QSI Report is that they include the cost to build other networks <br />as a basis for what this network is worth. They assume that a monthly recurring cost to <br />the users of the I-Net would need to include the recovery of construction costs. <br /> <br />2 Comcast Renewal Proposal, page 83
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