realistic means of bringing broadband service to our members and our
community, including those in the City of Grand Marais.
In conjunction with Pulse Broadband, (www.pulsebroadband.net) Arrowhead
Electric has been researching a new means of providing broadband service
to each of our members than what was applied for in Cook Counties round
one grant application.. A new technology patented by Pulse Broadband
utilizes fiber optic cable but enables the fiber infrastructure to be
constructed at a cost which is significantly less than what was proposed
in the first grant application. Pulse Broadband's technology is able
transmit over one strand of fiber vs. the traditional 32 strands of
fiber per cable. In doing so, less fiber is required, fewer existing
poles need to be replaced and repair times are significantly faster.
Even more significant however, Pulse brings a guaranteed service
provider of the, "triple play" (Phone, TV & Internet) service along with
it. As discovered with other similar fiber projects, the building of a
network in a rural community can be devastating if no service provider
is under contract before any construction occurs. Pulse Broadband's
ability to aggregate its customers and re-sell to a major service
provider is a significant advantage for these projects. The Pulse
Broadband model brings with it a guaranteed service provider.
Pulse Broadband's business model for Rural Electric Cooperatives is
straightforward. Pulse Broadband engineers and designs the fiber build
out at no cost to Arrowhead Electric up until the time of the initial
grant application. If a successful grant application is achieved
Arrowhead Electric will work with Pulse Broadband's team to begin the
construction of the fiber network. By working with Pulse Broadband
Arrowhead Electric is able to focus on the operation and maintenance of
utility infrastructure. The cooperative receives a portion of each
subscriber's monthly fees to cover the cost of operation and
maintenance. Pulse Broadband receives a portion of the monthly fee for
providing the customer service and administration while the balance of
each is returned to the corporation providing the service such as
Charter, Media Comm, Comcast or whomever else can competitively provide
service to Arrowhead Electric subscribers and/or the aggregate of all of
Pulses subscribers. If Arrowhead Electric were to receive a grant and
reject it or work with someone other than Pulse Broadband the
Cooperative will be required to reimburse Pulse Broadband a fee of
$20,000 for engineering and design.
The model developed by Pulse Broadband was successful for Ralls County
Electric Membership Cooperative in Missouri. Ralls County is
anticipating that since the contracts are in place for service via Pulse
Broadband their first members will be able to begin enjoying the
benefits of broadband service within 120 days of the date they received
notice of their grant award.
Should Arrowhead Electric choose to apply for the grant it will most
likely seek a 50% grant and a 50% loan from the Rural Utilities Service.
Similar to the round one grant application those choosing to receive
broadband service will have their choice of receiving TV, Phone and
Internet or any combination thereof. The triple play as it's more
commonly known in the industry has been initially proposed to be priced
at $125 per month based upon the initial business case developed by
Pulse Broadband. The final business case will be reviewed by Arrowhead
Electric staff and its Board of Directors.
Pulse Broadband is currently working diligently to create a business
case, network design and incorporate any partnerships which may be
available with the Northeast Service Cooperative.
Pulse Broadband is managed by a team of proven telecommunication experts
whom collaboratively have licensed their technology to over 30 networks
in service today. To learn more about their management team and the
service they provide please visit www.pulsebroadband.net
Joe Buttweiler
Director of Member Services
Arrowhead Electric Cooperative
1-800-864-3744
<email obscured>