Doug - we are looking at alternatives so that ILN can continue. 
 
I'd need to have contracts on at least 45 circuits to get the level of wholesale pricing that would let us operate in the black. It may be better in the long run for us to see what can be done about maintaining ILN for a year and redesigning the collaborative around a 10/100 meg Ethernet strategy that includes multiple vendor partners.
 
Phil
 
Philip Hyjek
Director, Technology Initiatives
The Vermont Institutes
45 College Street
Montpelier, VT 05602
802.828.0063
http://www.vermontinstitutes.org 

________________________________

From: School Information Technology Discussion on behalf of Doug Reaves
Sent: Wed 1/12/2005 12:32 PM
To: [log in to unmask]
Subject: Re: VI Broadband Collaborative



Phil,

How much bandwidth would you need to sell, in order to cover your
costs? Is there any chance of polling schools to find out which of us
might be willing to sign a sales agreement with VI? If the commitment
turned out to be sufficient to cover your costs, you would be back in
business.

I'm guessing that without the Broadband Collaborative, the VILN can not
be sustained.

Doug Reaves
Bellows Free Academy
Fairfax, Vermont

>>> [log in to unmask] 1/11/2005 11:18:53 AM >>>
We finally received special contract pricing for ATM services, which
as
you are aware, is the transmission protocol that supports the ILN and
the Broadband Collaborative.

Unfortunately, the price at which the collaborative can buy ATM
services
is 22% higher than anticipated. Verizon has indicated that it MAY be
possible to obtain the anticipated pricing if the Collaborative
guarantees a significant number of contracts; however, without
guaranteed pricing from Verizon VI would be placed in a position of
providing services to collaborative members and risking a potential
deficit of $70,000/year if we did not meet Verizon's contract target.

After many hours of financial analysis, strategy meetings, gnashing of
teeth and pulling of hair, we came to the conclusion that we could not
assume this type of financial liability, and we had simply run out of
time for continued negotiations and exploration of alternative
scenarios. We felt that to continue to make the VIBBC viable with such
limited time would be irresponsible and we did not want to jeopardize
erate funding.

Yesterday, Doug Harris and I presented a formal recommendation to the
VI
Board to discontinue the VIBBC. That recommendation was unanimously
supported.

I remain convinced that this type of collaborative is the best
solution
for bringing true broadband services to our schools; and, although the
project will not be proceeding at this time I believe that it will be
resurrected in the not too distant future.

I appreciate the encouragement and enthusiasm that many of you have
expressed over the past year.

Phil

Philip Hyjek
Director Technology Initiatives
The Vermont Institutes
Dillingham Hall
7 West Street
Montpelier, VT 05601
802.828.0063 (voice)
802.828.0076 (fax)
[log in to unmask]
http://www.vermontinstitutes.org