Fiber Business Model Development for Riverside Public Utilities

Riverside Public Utilities ("RPU") owns and operates an extensive fiber-optic network used to control its electric substation communications. The network has also been a valuable resource to several community organizations that use it for direct fiber connectivity. RPU and the City have been searching for ways to expand the availability and affordability of broadband services in its community, primarily to:

• Support the City's economic development goals to attract new business and retain existing industries
• Drive new electric demand by growing industries that need high-quality broadband services
• Enhance broadband connectivity for community organizations
• Differentiate the City as a highly connected community

Magellan was retained by RPU to develop a long-range roadmap for the development of RPU's fiber network. To ensure the roadmap was designed to meet the unique needs of Riverside's community, Magellan conducted a comprehensive needs assessment that included key community stakeholders. Magellan incorporated this needs assessment into a step-by-step plan for RPU to follow comprised of distinct phases, tailored specifically to RPU's risk tolerance, access to funding and desire to improve local broadband. These phases included:

• Formalize their current network and operations
• Begin to expand the network by finding near term opportunities that would yield success and build momentum
• Implement new business models that would create widespread opportunities for fiber to the premise through strategic partnerships

In early 2016, the RPU board approved the first phase of the deployment and has engaged Magellan's implementation team to carry out the project. Magellan's deep business and operational expertise will give RPU a broadband partner that has deployed hundreds of fiber-based networks nationwide. Magellan will assist RPU craft the right organizational structure, policies and processes to expand its network, as well as set rates, implement management systems and support sales and marketing of RPU's services.