Fiber to the Premise (FTTP) Strategic Initiative

Market Opportunity

Rural communities across North America can benefit from FTTP. LTS has determined through market analysis studies that there are 8000 rural communities who meet LTS’s criteria for FTTP development and who do not have widespread access to broadband services. Rural communities have been traditionally under-served by large communications companies; therefore, there is a great market opportunity to upgrade their existing infrastructure to a modern system that will provide not only internet services but also voice and entertainment. Most rural businesses and residents use low speed dial-up or DSL for their phone and internet needs, and advanced entertainment services were extremely limited or non-existent. Now, through the implementation of FTTP in rural communities, residents will have the ability to use IP phone systems and high speed internet, and to receive state-of-the-art television and entertainment programming, including IPTV and HDTV.
 

Bandon Oregon Launch Property

Initiative Number One

Bandon, a rural coastal community located in Southwestern Oregon, was selected as the launch property for our FTTP strategic initiative. The concept of developing a launch property was established in order to allow LTS to validate our market, technology, deployment, and system integration assumptions along with CAPEX and OPEX parameters needed to support the required investment returns. Bandon was designed to allow us to leverage our significant investment in technology, equipment and process learning to a planned regional network that will include up to 15 additional rural systems in Oregon. This approach will allow for significantly higher financial return as each new system is added to the regional network.
 

Coquille Oregon Leveraged Property 

Initiative Number Two

The LTS strategic model includes a number of properties to be developed in the Pacific Coast area creating a cluster of fiber-enabled communities that leverage already completed infrastructure. The city of Coquille, Oregon is located 26 miles north east of Bandon in Coos County between the I-5 corridor and the Pacific Coast. This property leverages the completed infrastructure developed for our initial FTTP property in Bandon, Oregon. It is the first expansion property that will make up our Oregon cluster of fiber communities, which will leverage Bandon’s technology and investment. By using Bandon as a base and leveraging services, the cost and risks of implementing FTTP is reduced as more properties join the cluster.