Entering the Entering the Broadband Broadband Business Business

OwensboroOwensboro

Is located Is located in Western in Western Kentucky.Kentucky.

54,000 54,000 Citizens.Citizens.

Is on the Is on the Ohio River.Ohio River.

OMUOMU Was established in 1900.Was established in 1900. Is fueled by 235 employees.Is fueled by 235 employees. Operates its own water Operates its own water

treatment and power treatment and power production facilities.production facilities.

Serves 54,000 citizens.Serves 54,000 citizens. Is the largest municipal utility Is the largest municipal utility

in the state with power in the state with power production capabilities.production capabilities.

OMU CustomersOMU Customers

WaterWater 23,96323,963 ElectricElectric 25,42325,423 TelecomTelecom 2,9062,906

WirelessWireless 2,7372,737 FiberFiber 169169

OMU TimelineOMU Timeline 1895: The residents of Owensboro vote to build their own electric utility.

1900: Owensboro residents vote 1,942 to 444 to build their own deep well system. That same year, on December 31 at 4:25 p.m., electricity flowed for the first time from the new city-owned electric system.

1940: City owned electric and water systems are combined to form present-day OMU.

1997: OMU installs a fiber optic network around the city.

1999: OMU begins to provide high-speed fiber services to commercial customers.

2001: OMU launches a residential wireless pilot program.

2002: In November of 2002, the commission votes to offer wireless Internet access to customers throughout the community.

2005: OMU is approaching providing service to 3,000 wireless and 200 fiber customers.

Quality of ServiceQuality of Service

4352

41

45 50

6

58

38

40%

10%

20%

30%

40%

50%

60%

1996 1998 2004

Excellent Good Only fair Poor

(Survey conducted 2004 using random sample telephone survey)(Survey conducted 2004 using random sample telephone survey)

OverviewOverview

Does it support the overall Does it support the overall mission of the business?mission of the business?

What is the business case for What is the business case for installing the infrastructure?installing the infrastructure? Support for other business unitsSupport for other business units Primary businessPrimary business

What business model type?What business model type? Community ServiceCommunity Service BusinessBusiness