0:05Good evening, everyone.
0:06Um, I'm Brad Wortell.
0:08If you don't know or I haven't met you before, I'm the chief operating for Velocy Network.
0:15Um appreciate everyone's time uh to to hear about our updates and then get some feedback and we can provide some um additional data and some of the roadblocks and things that we've been seeing that we can maybe work through here, and maybe council can help us out with and continue the growth that we have here.
0:33I know while I'm working with Chuck before we had uh you know just a little bit of areas that we were in in the city, and it's been a little bit of uh time here since the last meeting, but I wanted to provide a printout here, and we can get you a digital copy of this as well so you can zoom in.
0:47I know I tried to blow it up on uh a larger paper, but uh it didn't really blow up well.
0:52So um, but if you know the city uh and and the roads and everything in here, this will kind of uh break out where we've been.
1:00We've been really busy um the past year.
1:03Um we started with uh permitting or working through uh permits with uh First Energy.
1:10Um we had um set a number of poles in the in the city for some areas where we couldn't get on the telephone poles.
1:17Um, and as you're aware, majority of the city of Erie, um the utilities are um through the air or aerial.
1:24Um there are some areas that are underground.
1:27Um there were some sections we we put some uh underground conduit in, but we really expanded uh dramatically from the border of uh Pittsburgh Avenue.
1:39Um I would say from 26th, 26th Street to 38th Street, and then just recently we've moved all the way up to uh West Grandview Boulevard.
1:49So everything that's highlighted in uh in orange is areas that those houses can get service from VNet Fiber.
1:59Uh you need another one?
2:04The area um you'll see a couple that are in bluish purple.
2:09They would look blue on the computer, but it's more purple.
2:12Um is uh State Street.
2:15We've we've been working on um pole permitting and costing for State Street from about where um Collegiate Academy is up to 38th Street.
2:24There's been an area there in the middle that we were running into.
2:27There's issues with the telephone poles, and if you're familiar at all uh with the uh telephone uh and power line poles in some parts of the city, they're very old.
2:38Some of them are probably in the 60 to 70 years of age.
2:42Um, first energy is starting to do a lot of work on replacing those with more uh modern poles.
2:47Um you'll see that in different parts of the city.
2:50But that how that holds up some of our deployments because we bear the burden of paying for those replacements.
2:59Um there's some changes in the FCC uh laws that are coming down that are requiring the power companies to I'd say take the burden on of a majority of those poll replacements because they should have been replaced 25, 30 years ago.
3:16Um but what's happened historically is uh providers like us in other regions, other providers when they go to attach to a telephone pole if they're the next one on the power company or the telephone company of Verizon owns they own about probably 20%, 30% of the poles in the city would come and say, okay, velocity, you're the next one to attach.
3:39We wouldn't replace this poll if it wasn't for you needing to get on it, and it's $15,000 for that one pole.
3:46So we're still running into those things.
3:49We had had a crew come out and survey West Bayfront two years ago, East Bayfront, and put together a model for us to be able to go on telephone poles in those areas.
4:04That pricing two years ago is not the pricing of today.
4:07So there's been some changes in the uh requirements and height requirements, a whole bunch of technical stuff and where we can attach and where we can't.
4:16We are working very closely with First Energy and Verizon to see if there's some relief and some different ways we can go about getting on some of those poles.
4:26Um there are areas in West Bayfront and even on um East Bayfront that there's poles on both sides of the street.
4:34So the power company owns the poles, let's say on the north side, and Verizon owns it on the south side.
4:40But if power lines cross your your lines, your telephone lines, we have to maintain clearances.
4:46So now we get we would have to pay 800, 900, 1,000 to have first energy move the power lines up higher so that we can fit above spectrum.
4:56So there's a whole bunch of different things that go into attaching to telephone poles.
5:02We found a lot less of those problems south of 26th Street because there's not as much uh equipment and as many things attached to the polls.
5:12So that's what's allowed us to spread out pretty rapidly from Pittsburgh Avenue all the way.
5:20I mean, we just wrapped up McClelland and 38th Street.
5:23Um that's we were over there.
5:26So McClellan 38th to um what uh East Grandview Boulevard.
5:31I grew up on English Avenue, so uh you know my parents got fiber finally here, they've been asking for it for like 20 years, but uh over there on uh 40th in English, 44th in English.
5:43We've got um a section in um you're over near Mount Calvary and Ricardo's, they're on the north side of East Lake Road.
5:53Um that was a section we were able to get permitted and surveyed before Penelect changed the parameters, so we're able to get on a lot of those telephone poles at the rates that we had budgeted back two years ago, so that we were able to complete that successfully.
6:09But then um, as you will see, there is a lot of the the red lines here across the city, and those are where our trunk lines are.
6:18So that's where we have fiber now everywhere that is service servicing a business, a school, the wastewater treatment plant.
6:26If you see here on the north side, um a lot of small mid-sized businesses.
6:31So what we're doing right now is we're kind of in these areas is pivoting and looking to say, okay, what poles can we get on?
6:40What things can we attach to and work with first energy that isn't a whole blanket amount, but we can build off of the places we already have attachments.
6:49So wherever you see the lines, we permitted with Verizon or First Energy, maybe even 20 years ago, depending on where we built to.
6:57So we're now trying to go and pick just being able to build off of our existing um fiber to then expand into those areas and then hopefully you know, see where poles are being replaced by First Energy.
7:12Um we're gonna work on having some discussions with them on what their um timelines are for replacing poles and upgrading some of the facilities in some of these uh areas in West Bayfront and East Bayfront to allow us to come in and not have you know if we budgeted 100,000 on the West Bayfront for pole uh pole attachments, that's now 400,000, 500,000.
7:35It's it's jumped dramatically.
7:39So we don't also want to hold back some of our expansion.
7:42So what we're doing is hey, if we can go off of our network, how many homes can we feed off of that?
7:48How how many poles can we get to that um aren't problematic?
7:52Um in some of the areas around the city, we go underground to bypass problems on poles in the city.
8:01It's a lot more complicated.
8:02There's a lot of utilities, there's a lot of old infrastructure under the ground, and we're really trying to be good stewards of that because we ran into that in frontier.
8:10And I think it's happening right now with like the water line replacements, is like you're digging up things and it can lead to the trees being destroyed, the root system, and I've seen that in other areas where like if you start disturbing the ground ahead, it could create other problems.
8:26So we really want to stay on poles where the utilities are aerial and stay underground where the utilities are underground and not set poles necessarily where people didn't have them before because we have gotten you know calls from um citizens that we set a pole you know in you know on their street that wasn't there before because we're trying to get around a problem area with the the utilities, and they're not used to having a telephone pole on their other property.
8:53So we send our team out, we talk about the benefits of the fiber and everything coming to them, and they they're fine with it after we tell them what it's for.
9:00Um so you know that's worked out well, and I I don't I haven't received many complaints, you know, and I haven't heard from anyone on council that's gotten a phone call from someone.
9:09So, you know, we're we think we've gotten through that uh that part of the deployment.
9:14But you know, as you can see, um, if you compared it to where we were before, and Chuck, to your point, we had areas that we were in development, you know, especially along West Bayfront.
9:23Right now, you know, based on all the things that I've said, is we're kind of in limbo on some of that.
9:28We're we're going through block by block and seeing if there are areas that we can get some success on the the telephone poles.
9:37I think our biggest obstacle is you know, making sure that we are working alongside with First Energy to get on the poles that they are replacing, and or um find a longer-term plan with them as to what their you know upgrade path is for the existing infrastructure because there is a lot of lines criss-crossing, going back and forth.
10:01I mean, if you just drive down second street, you can just see lines or third street.
10:05It's just how it happens.
10:06You got cable going one way, you got Verizon going the other, you got Penelect coming across, and we're the new people coming in trying to get around that.
10:15So you know, I think we've had a very good relationship working with First Energy and Verizon here locally to help us keep this growth going.
10:24And you know, this is what our current status is right now.
10:27So I'll leave it open for for questions that you might have.
10:30And do you run into any problems with tree trimming?
10:35Or you are lower than the lowest branch.
10:39So we have had probably a half dozen fiber cuts recently because of the tree trimming that was going on where they're they're um you know trimming the trees to get them off the power lines, and we're the top attachments.
10:52So it happens, it's an accident.
10:54You know, we have you know where they're using the saws and they they nick the fiber, or um, you know, it's the branches fall down on our on our lines, and we have to repair them.
11:04Um, but it's not it, it's not too bad.
11:07Um, we have to trim trees as we're installing at times.
11:11Um, we've done uh we did a lot of builds over in the um let's say uh green garden, you know, north of uh south of 32nd Street.
11:20There's a lot of trees covering those lines, and in order for us to get our um fiber through, we had to trim them.
11:27Um so you know, there's a lot of you know, encroachments because it's in the backyard.
11:31A lot of the power lines are in the backyards in those areas.
11:35Do you get any complaints from the residents on you know tree trimming?
11:42I would expect more, but when they hear that we're coming and bringing fiber and bringing it an option to them, they're like um most people are like very understanding and say we understand like we have to that you have to do this to get to get a service and to get our neighbors service.
11:57I mean, the the rear easements are sometimes a problem because we talked to other people like Spectrum or you know, trying to get in backyards and they're fenced in, and you have to get permission.
12:09We can't just walk in on to fenced in backyards.
12:12But generally, when they hear, hey, we're trying to hook up your neighbor to fiber.
12:16Can we get into your backyard to get up to the pole?
12:18Most people are really accommodating, and it's been it's been great the um the response we've gotten from when we go into the areas.
12:26We have citizens coming out of their houses and handing the technicians water and and you know, offering them a drink for you know working out in the area.
12:34It's just been it's been really neat just seeing the response we got from the areas.
12:39That's good to hear.
12:41Would you say that you have more um business uh clientele or residential?
12:46Because for me, it looks like the areas that are prominently developed are the business areas of the city.
12:51Um right now we have more we have more residential customers than we do business customers right now in the city.
12:57I mean, our our um growth has been.
13:00I mean, we've got right now we are at 6,400 subs in the Erie area, and a large majority of these those are coming out of the city right now from from Frontier, South You know, Southwest Erie, South Erie.
13:15Um, we've got a very high take rate up near you know, mount like I said, Mount Calvary.
13:20Um Southeast Erie, we've got a lot of fiber there, especially around Brandis.
13:27Um that area, the take rate is actually uh you know pretty low.
13:32It's it we thought maybe there would be more um people signing up, but we're like 12-13 percent.
13:39We're hoping to get around 25.
13:41Our goal in an area is to be at 25 to 30 percent, but there are areas in Southwest Erie that are doing phenomenally well.
13:50Um Charlotte Allegheny, um anywhere up off of West Grandview Boulevard.
13:57Um that's all that's all gone really well.
14:00Um West Northwest Erie, um Coqua, um, all of those um side streets off of uh 6th Street have done really well.
14:12Um then along uh 29th Street, uh you know, West 29th.
14:19Um our one of our main offices that feeds the fiber is off of 21st and Bower, so areas just south of that have done have done um pretty well.
14:30Um our goal is to fill in, start filling in areas.
14:34So you'll see in purple one of the areas that we're gonna be uh working on, um, hopefully uh very soon as long as we clear our penalect permits uh right across from West Erie Plaza.
14:44It's at uh 8 and Shenley area there.
14:48Um there's uh a number of houses right there in the cluster there, right?
14:53Uh um, I think right up against I-79.
15:00And then hoping to be able to take that all the way out to Harding Elementary that's over there.
15:05So get that section.
15:07Did you say it was more of a challenge to get more closer to the inner inner city as because it looks like you're describing like the out maybe the outer outsides?
15:16Yeah, so is it more of a challenge?
15:18The challenge is the you the older utility poles and the access to those utility poles.
15:24Um I would say that is our number one challenge right now because a couple years ago when we were starting uh this project and and meeting about it with the different contractors and meeting with our you you have engineering firms that come in and survey the polls.
15:40Um our initial estimates came in where we needed to be to make that work.
15:46The rules have changed, the attachment heights have changed, things have changed.
15:51Whether it's a first energy policy or it's more of a safety policy that's been adopted across the industry, they've changed those heights and those clearances that we need to be at.
16:04And because of the high density of homes in a lot of these areas and the fact that there's lines on both sides of the street, it's creating I would say uh four times cost for us.
16:19So what we're hoping is in the conversations with First Energy and Verizon is okay, what are your plans to you know to upgrade the poles and facilities?
16:30You'll see polls all over the city that have X's on them, but they're they're slated for replacement.
16:35And I get it, you know, if we are the next one to attach a poll and we create a life safety issue because the pole is you know 50 years past when it needs to be replaced, and we put a bolt into it and the pole falls apart and power lines fall on the street.
16:49Yeah, we don't we do not want to be a part of that, and we understand why first energy has the rules that they do.
16:55So our plan here over the next 18 months is to you utilize, and that's why layered in our our backbone network because that's how we've built all of this is built off of our backbone, which a majority of those lines you'll see across the network were there before we started this fiber to the home project.
17:14So the only way these work is if you already have a backbone in place that you can build off of.
17:19So our goal is everywhere we've got backbone is to look at those strategic plans and look at the polls, look at the data, and go, okay, can we can we deploy here?
17:29And you know, we've really been edging, we've been edging up north as much as we can.
17:35Um we've got some plans along Bird Drive that we're gonna be right in the middle of developing right now, Bird Drive down the Fairmont Parkway on the west side.
17:46So you've got Wesleyville Hobby on the east side of Bird Drive and um Erie on the west side.
17:51So we're working on those plans right now.
17:53But um, this is what our current situation is.
17:59I live in the 43rd Street uh Rice Avenue area, and that whole area is basically late 50s, early 60s, some 70s uh houses.
18:13I really hope that First Energy is working with you as best as they can because pool upkeep.
18:23I know that they went through um last year or so summer, and we're checking all of our polls in the neighborhood.
18:32But um it drives me nuts that some poles still exist when new ones are right.
18:38Right next to it, yep.
18:40I would hope that someday that there'll just be one pole instead of two poles.
18:47Um but and that they should have maybe grandfathered you in from I mean they've done uh over the past couple of years, they've done a really good thing.
18:56They brought in um consultants and they brought in engineers to go and document everything they have, and we were a part of that documentation.
19:04So everything that we have in the city has now been redocumented into first energy system.
19:10They had a third party come out, and that's probably who you've seen.
19:12Yeah, is uh, you know, they were contractors, they went to every pole.
19:17Looked at every single one in all of Erie County.
19:20Uh First Energy's done it across their whole, I think they're doing across their whole um company in all the different regions.
19:26But that's helped us too to identify where things are, you know, what it tells you the age of the pole, you know, how tall it is, and all those things.
19:34So I think our big thing is the price, and you know, even with inflation and all the the pressures on the the inputs, the products that we put on the on the polls, the strand, the fiber.
19:48None of that pro none of those products to us, at least right now, have gone up in price.
19:53Like, if anything, a lot of this has come down a bit to make it um a little bit easier to get um the equipment on the polls.
20:02The thing that has skyrocketed are the permitting fees, are the what they call make ready fees to make the pole ready for you to attach.
20:10Um, and then the post fees.
20:13There's now post inspection fees on top of the pre-inspection fees.
20:18So our issue isn't unique to other providers that are doing this right now.
20:24Um the FCC has done uh a really good job over the past uh you know, I'd say dozen years in trying to make a level playing field as to how these processes work, the timelines, the expectations of the providers, such as velocity and first energy, Verizon, ATT, whoever those providers are in that region.
20:47Um but it's not moving fast enough, it's still moving slowly as to how you know companies are adopting those rules, and um I can say first energy has done a much better job the past couple years bringing in uh different third parties to help them with the backlog because what we're doing in Erie is happening in areas all over, and companies like First Energy are being pressured to get all of this done this work done for providers, and they're being hit by in in multiple ways.
21:19So what we can do is you know work as closely as we can with them to make sure that we can get as much deployed as possible.
21:27Um there are other companies that are looking at the region right now that are doing some things.
21:32Um there's another company that's been doing a little bit of fiber here in the the Erie area, but we've been you know there right alongside the same time.
21:41So we've been uh happy to say most of the business is staying local.
21:45You know, we're still 100% locally owned, and we're you know, we're here for the long term.
21:50We're not looking to get gobbled up by some bigger company doing something.
21:54Um, even if we're not in these areas right now, we have pushed a price decrease to people in the city of Erie with Spectrum.
22:05If you've not called Spectrum, you know, they're calling you, they're trying to save their you know, save um some of their business.
22:13Uh we've done a really good job of coming in and positioning of what we offer, and we've got an overwhelming response.
22:20We were just set up at uh celebrate Erie with our tent, and we had an overwhelming response of people coming and saying, Look, you're helping me out here, like I'm getting better service and better rates from you.
22:31I would never go back.
22:32Um, even if they came and gave me a cheaper price, which is what they're doing, and we're we're we're preparing ourselves for the for that.
22:39But we have found that price is not the only thing that is you know keeping people from you know not switching to VNet.
22:48So you know, we're proud to give everyone those options, and you're seeing it now.
22:53I mean, they are throwing once they know that there's competition, because we're really the only one here doing this right now.
23:00I mean, Verizon is really cellular, is the competition, they're not doing any fiber, and I haven't heard any plans of that yet.
23:07But um, we're just gonna keep chugging along and getting into these areas that we can and provide a an opp opportunity for their citizens of Erie to have a another connection to the internet.
23:19With the backboning on the map, is do residents is that dark fiber or is that areas that that residents are able to tap?
23:29So a lot of these, a lot of these areas are it's it's fiber that is connecting to a business in the area.
23:36Those businesses, because of the way the network is built, can now the technology has changed that we can now utilize that same connection and and feed that to residential units.
23:48That's how we've built the whole network out.
23:50Is all of these lines you see in the shaded areas are ways that how now we fed those blocks and streets and and neighborhoods from there.
24:00So those lines that are there can be used, you know, depending on what the equipment is on those telephone poles.
24:08So if there's a problem, outage problem with the business.
24:14All the residents will suffer as well.
24:19Yeah, if the if the fiber, if the fiber is cut, you know, let's say on you know, one of these streets here that's feeding those businesses, and there's residential units that are there, they're all gonna be affected.
24:29So we try to build the network out to have connections coming in from multiple locations so that a whole area doesn't get isolated because of a fiber cut because it happens.
24:39You got someone you know hits a telephone pole, you get the like you see the tree trimmers, um, squirrel chew.
24:46I mean, that's happens with the rodents, they they find they get into the low conduits and they start chewing away at the fiber.
24:53We have we have that happen.
25:00But majority of the fiber cuts is because a telephone pole got taken out, you know, someone you know, a car crashed into it, or utility vehicle did something, and that's what usually causes our damage.
25:05That would be the same.
25:06So if fiber's going out, then spectrum's gone out, and then the I mean, every so it's not just generally, yes, we're all on the same poll.
25:15So generally if a poll gets taken out, spectrum's out, Verizon's out, the power's out, we're out.
25:21Um usually that's what ends up happening.
25:26But uh the one thing we do pride ourselves on is we our crews are all here locally, local employees.
25:32We don't outsource our our repair team, so they're all here on call to go fix problems, you know, when there's something that gets cut.
25:40So I'm trying to remember.
25:42I I think when we first talked to you or when I first talked to you before getting into office in 21, you were uh you were able to reach, I think it was 3700 residential, you know, residences.
25:54Uh uh do you know what your numbers now for households that are have access?
25:59Across the entire uh I don't have the number for Erie specifically, but across the entire plant, it's 20,000 right now.
26:10So these areas that we added over the past 12 months are about nine to ten thousand of that.
26:17So we've got a lot of density here, like I said, southeast, southwest Erie, Northeast Erie, and Northwest Erie are the big pockets, and if you go and look, like I said, the utility polls and everything in some of those areas are for some reason they've been replaced and not you know aged out for as for some reason as if I'm looking down you know Fifth Street right now.
26:42You I mean you're you can look at those poles and trying to get on those, it could cost us $20,000 to get on one pole right now.
26:48So that's we are working feverishly to figure out how do we better work with First Energy to get on those poles because at 20,000 a pole, you could go down a whole city block and there's 20 poles, 400,000.
27:04I even put I haven't put fiber on the pole yet, and you're at you know half a million dollars.
27:10So that's the and like I said, we're not unique in in having this problem, especially in you know, cities that have older infrastructure.
27:20Um, if everything was underground, then we would be just doing everything underground.
27:25It would be much more expensive.
27:26Underground is way more expensive than aerial.
27:29But what's very interesting now is we're running into situations where putting the fiber on the poles in some of these areas is more expensive than underground.
27:38But we can't go underground in some of these areas in the city because we will disturb everything.
27:43We will be disturbing trees, we will be breaking up roads, and we don't want to do that as well either.
27:49Because what will happen is the the opposite is where someone will say, Well, my utilities come in over the air, I've got a line to my house.
27:57Why are you digging up my driveway?
27:59Why are you digging up my my sidewalk to put something into my house?
28:03And we don't want to have that happen as well.
28:05So we're we're working a bunch of different angles to try to get as much of this, you know, the orange shading, so the next time we talk, you get more of the shade uh in some of these areas.
28:16Um the two, like I said, in purple are the ones that are imminent right now.
28:19There are other areas where now we're just working back and forth to figure out um what the pole costs are gonna be, and then try to edge out from these different backbones that we have right now.
28:30How eminent are we talking with these two blue sections?
28:33Um, if the weather holds out, if we don't have a well, I don't want to predict what snow's gonna look like this year.
28:40That really slowed us down last year.
28:42But um if the weather isn't a problem, then it would be late this year.
28:49Um most of these are aerial, so we can work during um the bad weather unless you've unless you've got three feet of snow in the street, you can't get that.
28:59Was one of our problems last year and completing all of these uh on time was the the contractors just couldn't get their trucks down the streets and and couldn't get uh you know from a safety standpoint, we can't block the roads off.
29:11So as long as you know we had two good seasons a couple years ago where we could get work done.
29:17Um I'm hoping cautiously optimistic that we can keep just working away.
29:22Um but I would say late this year, early next year.
29:27Are any residents um putting the bill to have the hardware installed themselves?
29:32To have the fiber wiring and everything installed are we don't charge an install fee.
29:39But if they wanted to get connected, are you guys like offering to if so if someone wanted to pay for us to build infrastructure to them, it's no different than Spectrum.
29:50If you're they're not there and they wanted to pay and we did a survey to say it's gonna cost this much, absolutely.
30:00I wonder if our state legislators could contribute like with through a grant or something to help you out.
30:04We've been we've been looking at a bunch of different avenues.
30:19They've been focused on areas that don't have it.
30:21So one of the disadvantages for Erie is we have, I mean, we have what's considered broadband with spectrum that they meet the standards, spectrum is down every street.
30:32So to me, I'm clarifying it from competitive broadband because really they're in the areas that we're not, you know, they're a monopoly.
30:39So they can control it.
30:42Let's put some numbers on there to like what the state defines as high-speed internet.
30:46Is it three megabytes per second upload speed and a 25 download?
30:50I think is the Yeah, I think right now it's still it's the FCC standard.
30:55So I want to say it's 25 by 3, and maybe fit I've heard 50 by 10 coming as a as a 25 by 3.
31:03I I I could be off on that, but I but I'm I I know that that was the standard recently.
31:07And what are you throwing?
31:08Like a thousand up and down at the same time.
31:10Or uh in some areas right now, it's two thousand.
31:13So it's a big difference.
31:14Yeah, we're talking and the upload speed, especially, like we're talking something, it's not even comparable.
31:18But because we have three upload speed available everywhere in the city, they're not helping us, uh, which is why the city has stepped in and especially through revolving loans.
31:28Uh we're at about twenty two point eight million dollars in revolving loans between six of them, one of them is about to be paid off.
31:33We're gonna be down to five with you.
31:35So um, you know, that is that is part of it.
31:38Where where are you guys at to make this move faster?
31:41Is there is there pressing capital needs right now for you guys?
31:45I I know I don't think it's pressing capital, it's getting the the cost uh you would say cost per home passed to a point that no matter what the capital number is, it it works.
31:58You know, the capital numbers, you know.
32:00If if I'm talking about $20,000 to replace a pole in front of one house and it's you know $200,000 to get a half a block, it just doesn't it just doesn't work.
32:10The the cooperation, if we can get cooperation and maybe come up with some creative um creative ways to get down some of these blocks, then I think that that's gonna be the the the bigger thing.
32:24Um you know, yeah, capital is you know if if we had tar if we were targeting a specific area, I mean capital's always you know something that we could we could use.
32:33I'm not gonna say that that's not uh it's it's not holding us back from doing those areas if if that's the question you're asking.
32:41So I think the last two years has been very eye-opening as to how the regulations have changed and how the power companies and the phone companies and all the regulatory things have changed over the past two years too to make it a little tougher to get on some of these poles.
32:55We'd been approached before about um you know burying fiber and some of our standards for what um for the cuts were gonna have to be were um stringent from their views.
33:08Yes, so the is there anything that we're that we could do to make it easier for you in that way?
33:12Well, the you know the providers they were looking at underground in the city, they would be looking at like micro trenching.
33:18I just don't know how you deal with that in the winter when you have four inches of ice on the road.
33:23Yeah, we're not even looking at that.
33:25That's something like it would be a disaster if someone had to dig up a water line in the middle of the winter and hit a fiber light and we couldn't fix it.
33:33Yeah, so we're just not looking at that.
33:36I I would strongly suggest to any fiber provider that's looking to do that up here.
33:40I've talked to I was just in Salt Lake City at a conference, and they're like, we're not even doing that up here.
33:45We're not we're not touching that because of the repair side of it.
33:49It's great to put in, you can put it in the ground, but when you have that that fiber cut and you're dealing with three feet of snow, good luck.
33:58So at least with a telephone pole, we can fix it, you know, get up there on the poles.
34:03Is there benefit so I guess this it might be an obsolete question?
34:07When we are doing new infrastructure and new buildings are going up, if that part is buried underneath around, would that make sense?
34:14That helps that helps immensely, yes.
34:18So they just it's like a dig once thing.
34:20And there's there's been some ordinances, some some municipalities are looking at like Barry once dig once the everything that's going on, they're putting conduit in the ground at the same time so that it gives you access to get there.
34:31Because thinking about parade street, like there is so much infrastructure and development that's about to happen down parade.
34:36So if we could coordinate where there's just and parade is parade, is not gonna be a problem for uh but we've been working really we worked really closely with the city.
34:43There was a um uh camera, I think a camera project that happened up and down Parade Street that we made sure we put extra facilities in there to be able to service areas from there.
34:54So um six and parade, I think it was six to tenth in parade, and then that got us down.
35:00Um I think it gave me it's down even further.
35:02So um we have some micro cell um towers that are down that way too that we we cover, so we're gonna be looking at that area as well.
35:10I think if you look down um East Sixth Street, you know, there's there's lots of lines out there.
35:16A lot of those are Verizon micro towers that we have.
35:19And how does it just play well with or not play well with the power grid in and of itself in Erie?
35:25Because as we're looking like hybrid cars things that are charging, that is it's it's tapping it out pretty pretty quick.
35:31Like I'm just curious about it.
35:33I think they're just gonna be putting you're gonna see uh I've been seeing a lot more high voltage lines and and and facilities being put in to handle that because it's definitely a big need.
35:42I mean, I'm sure there are areas now that with a lot more electric vehicles that the power grid's being taxed though in ways it hasn't been before, which is a which is a good thing because of the electric vehicles, but also a bad thing if the if the infrastructure can't keep up.
36:00So this will take you through the end of this year.
36:04Do you have uh blue areas in mind for next year yet?
36:08Uh like I said, we're working on um design and network design to fill in.
36:12I mean, if you're looking at these gaps in here, is how do we fill those in on top of our existing infrastructure backbone and spread out without first energy prices being too high.
36:24And you know, like I said, we've had some really good conversations.
36:27We're gonna be working very closely with them and their engineering teams and their um they've got a new company that's working on the engineering side as well that we're gonna be working with and really try to squeeze out as many of these areas as we as we can in terms of um building off of our existing infrastructure.
36:46And if we can get through some of those hurdles, you know, um, and leverage, you know, talking with the the different there's there's uh a lot of different grants and funding sources, but like I said before, a lot of those are really focused right now on the underserved, and to your point, Chuck, it's not considered that in here, even though it's really low.
37:06It's low standards for that.
37:07The stand, I mean if we could set the standards to if you're trying to stream video from your security camera at your house or use your blink yeah, your cameras, yes, it's really low.
37:19Um that's one of the benefits on the fiber size our upload is a lot higher.
37:23So your cameras and all the things you're trying to do from a security standpoint are way better than on a cable modem.
37:32I forget how many cameras I have to upload from my house right now with this fiber.
37:37And and you take and you take it for granted when it's just working and you're like, well, okay, I can so you know that's one of the benefits.
37:48So different from back in the day when you're sitting in front of your computer for 10 minutes while something's loading, yeah.
37:56Heaven forbid someone call you.
38:03Any other questions or I guess we're just looking forward to it expanding throughout the whole city.
38:08I know there's residents who continue to ask when you guys are coming to their neighborhood, and you know, we don't have those answers.
38:14Yeah, and uh I encourage everyone to keep coming to the website or keep reaching out to us via phone.
38:18We take all those notes, we put it all into our system, we're crunching the data.
38:23Some of these backbone areas look like you almost have like a solid and that's why I wanted to share that with you in this map, because that's where we're really focusing on is how do we expand from that?
38:35Um because we're already on those poles.
38:38Yeah, and when we're on those poles, you know, that that's not holding us back from those areas.
38:42So um that's where the um people signing up and showing us their interest is really helpful.
38:48Yeah, like cherry cherry to parade looks like you have a cord out there that the whole thing's almost full already.
38:53It's just that it's all backbone.
38:55And a lot of these the backbones are uh you know original from when we um the schools were all connected, so they're all near schools.
39:04I mean, Fairmont Parkway is white, but deals on the deal.
39:08Um yep, so um Fairmont Parkway, McClelland, um down to Buffalo Road, uh up to 38th Street.
39:15So we're looking at that McClellan corridor as well.
39:24So essentially the biggest barrier right now is if there were new poles, like so these aging infrastructure, if the new poles were in place, that would expedite the process for you all.
39:35Yeah, the the new poles that would allow us to attach to them without having to replace them.
39:42And like I said, there's been a lot of progress from from Penn Lek on that.
39:47Um probably it should have you know, probably should have been years ago that that was going on, but you know, it you know it's it's moving.
39:54You're seeing a lot of them get replaced.
39:56Are you having any specific issues with uh northwest 26 streaks?
40:01I see how there's like most of that's connected in that one street looks like right there in the corner.
40:09So like right there near 79.
40:21That's yeah, that's all that's on the mill creek side, right?
40:26Yeah, like I'm just asking different.
40:35I see how like you guys have been going along most of the middle.
40:40Uh 20 the the backbone, there's no telephone poles on 26th Street from 79 till gosh.
40:48I mean, there's we don't have any backbone on 70 uh 26 from Peninsula Drive to 79.
40:54It's just there was never any reason to do that because it's all commercial.
40:58Well, anytime you're thinking about putting any zones on this side of that blue line or on this side of the blue line or this side, and you're like, we're not sure if we're gonna do it here or here, let us know.
41:09We'll find a way to make it here.
41:11That's what that revolver loan front's for.
41:13I was just talking to the guy that works at Cam uh yesterday, the day before, and he lives in Westonville.
41:18He's really looking forward to fiber, and I said I was into everything in my power to make him move to Erie for it.
41:22No, he's on the other side of that blue line, right?
41:25So I told me you'd have to be a little bit more.
41:29Yeah, so um, we are you know, because we've got trunk lines on what is that uh Buffalo Road and McClellan and getting over to Bird Drive and wrapping up that where McClellan Park is and around there, that's that's something we're looking at as well.
41:45Now there's a couple areas uh I know is underground.
41:49I think uh north of McClellan Park, that's an underground area, I think, of homes.
41:56So that's you know, that's one where there's no telephone poles, but you know, it's gonna be a little bit it's it's more expensive to bury it.
42:02But if the infrastructure's there, we can we can get that done a little bit easier.
42:07The other thing too is um you'd be surprised like the the amount of interest where there's a lot of interest, and then you you get built to it and it's it's that change, you know, changing providers, you know.
42:22So we're doing a lot of um outreach and explaining the process because it changes, you know, it's not easy.
42:29I mean, changing providers that I mean the install for your I mean um we try to make it as seamless as possible.
42:34I mean it was like it's two hours from the it's yeah, it's a two yeah, it's a process, it's yeah, it's a two-hour process.
42:41But it was what I'm saying is like if there was a disruption from going from one provider to another, I was connected within two hours.
42:47So I didn't miss a football game and it was quick once it was there.
42:50That's part of the education that we're really trying to get across.
42:53Is he it's okay, it's not it's not gonna be a big deal.
42:56What is the the communication like with like our permitting department, for example?
43:00So if if is there connection with so if we know that there's gonna be a new build, we know that the ground is gonna be torn up.
43:06Or is there like just communication with our departments?
43:09We we communicate a lot with the permitting department for our needs.
43:13Yeah, and I think you're on to something is that hey, we're building this here, let's just let us know.
43:19We can put something in the ground or work with the team to make sure we have infrastructure built out.
43:24Um but um I can tell you from the city side, everything we've needed from the permitting and setting poles and vaults and all that has been phenomenal, phenomenal response from the team here.
43:34And that may be I mean, because I know we get a lot of like when the permits are coming through, we're approving them on council.
43:38So I mean it might just be a coordination of making sure that the minutes are certain, you can see what's coming up.
43:44But if the ground is gonna be tore up and there's gonna be things built, it would just be it would just be cost effective.
43:51Oh, that's a great point.
43:54I mean, since for anyone that's actually watching this, if people are watching, everyone's watching it.
43:59You know, I think this is one of the things that I continue to point out.
44:03Um, you know, studies have this at being worth about four to five percent appreciation in home value.
44:08Uh assessed value of our houses in the city is you know, about three and a half billion.
44:13Uh it's probably actually like from an appraisal value, probably closer to about five billion now.
44:18So like when you look at like the investment that happens, like this can create a quarter billion dollars in home equity if we add a citywide fiber network.
44:27Right now we're at about looks like about a 30% coverage.
44:30Uh we were at 10% coverage a couple years ago.
44:33Um 30 to 40 percent.
44:35You're gonna be able to do that.
44:35Yeah, I think you're uh we're in the 40s.
44:38So I mean this is we're talking about homes past, yeah.
44:40So I mean this is really yeah, with the backbone and stuff like prior, probably.
44:44So as we get up to close to half the city lit, I mean, this is you know, nine figures wealth creation for a community, and that's that's where it really becomes important that I think the city continues to you know invest in this with the revolving loan fund and to to see that because it's an investment in the community as much as it's an investment in your company.
45:03And what I um commit to here is the the data that we're gathering on these zones that we originally thought were going to be X to build and now they're Y is you know pushing that to the point where we can confidently know we can build for this and talk with you know this the city and talk about the the different funding options and things that are available to help even push that across the finish line.
45:26But um, I think there's a lot of work to be done with first energy on that.
45:30But like I said, there's been a lot of communication and it's it's uh way better process than we've had year for years.
45:37So we're we're optimistic.
45:39Um but you know, I I agree with you, like I'd like to have it yesterday, and you know, we see how when we're getting into areas, how we're being received and how we're changing you know the technology for a lot of these homes that we're going into.
45:54Um, and we just want to continue to do that for the city.
45:59I'm just speaking from like personal experience.
46:01This this was a game changer for my kids who are online school, but also for our private business where we do a lot of sessions.
46:09And so when when we're investing, we're investing in the entrepreneurs.
46:12We're I mean, there's just it's there's a lot, there's a lot of people that work from home.
46:15Yep, there's a lot of students who are going to school from home.
46:18I mean, so this is incredibly beneficial, not just from like the the business side of it, but it creates a pathway for a lot of people.
46:25And I don't know that that the human side of of the benefits of this getting to as many places as we can.
46:31I think can't be over overemphasized.
46:33Yeah, it's just not the tech speak and that you're getting the fastest.
46:37It's actually changing lives and changing what you're doing from your home.
46:41The work from home is big.
46:43The security aspect of it, um, the reliability.
46:46I mean, your doctor's appointments here.
46:48I mean, just there's so many things now that people are doing from home, and this is this would be a game changer for so many families.
46:55Um, so whatever we can do, we gotta do.
46:59Well, and yeah, and you know, um, you know, our mission's been that way, Joel's um, to continue to keep expanding this.
47:06Um, we're gonna work on getting rid of all the roadblocks we can, and I think you know, the the cooperation and all the help from from the from council and from mayor's office and and everyone here to keep doing this.
47:18We're we're gonna keep pushing ahead and we'll get around um these roadblocks and you know you make sure we get it deployed as much as possible.
47:29I appreciate I appreciate the updates.
47:31This is helpful for me too, to also for us to understand what is what is stopping some of the expansion.
47:36So, where can we help and where can we push on this side as well?
47:46Does anybody else have any other questions?
47:51We we block an hour, but I mean I don't think we have we're not obligated to take the hour, should we?
47:56No, I just um I look forward to it reaching more residential neighborhoods, especially the east side residents and you know residents who have been asking for fiber um for quite some time.
48:07So I'll be reaching out to VNet to see what we have to do to get the uh Chestnut Street connected from West 18th down to whatever the other orange line is because I know a lot of you know feel free to reach out to me directly and give I give you my email address, and if you want to send me those areas, I can definitely look into that.
48:32Right now we have Mo over here in this dead zone, and then you have me over here in this dead zone, and I'm more concerned with all of these dead zones of actual residential neighborhoods, so yeah, okay.
48:51Questions for another day?
48:53Well, I just want to know how come you uh took care of Kathy first.
49:01I telephone polls are looking good.
49:05Yeah, uh that process where you where you're at over on Rice Avenue, that was about a year and a half of planning and uh designing and then finally getting it implemented.
49:15I think we we just wrapped that up uh early this year.
49:19Um the the winter really we were we were chugging along looking at the previous two winters and knowing that we thought we could make some progress, but I should know better, being in Erie that like our luck was gonna our luck was gonna run out.
49:32So that that held us up, but we appreciate it to be able to serve everyone over there.
49:40So there's nothing else.
49:42Uh we thank you very much for your time and expertise and uh let's keep it going.
49:49Okay, thank you everyone.
49:51Have a good evening.