Steps to complete the capital allocations for EFM eligible circuits:

$/per foot table

IQ
1)
Check SLC to see if PSEUDO and capital is required
2)
Determine feet to manhole in QVO
3)
Enter in assumed capital to CCCS loop tab:
a.
Capital fiber (column W): $2,000+(Value from $/foot table)*#of feet to
manhole
b.
Capital Equipment table (column X): $4,000
4)
Repeat for all EFM eligible loops
5)
Pull all loops over to product sheet
6)
Go to IS-Time View tab
7)
Expand Depreciation Expense Rows (94-114), copy all the rows, then Paste
Special
Values
8)
Go back to CCCS loop tab and modify the formulas as follows:
a.
Capital fiber (column W): ( $2,000+(Value from $/foot table)*#of feet to
manhole)*10% for every year of the term (i.e. 10% for 12 months, 20% for 24 mo
nths, 30% for 36 months, etc.)
b.
Capital Equipment table (column X): $4,000*20% for every year of the te
rm (i.e. 20% for 12 months, 40% for 24 months, 60% for 36 months, etc)
9)
Price the deal as you normally would with market pricing in mind
MOE
1)
Check SLC to see if PSEUDO and capital is required
2)
Determine feet to manhole in QVO
3)
Enter in assumed capital to product capital tabs:
a.
Capital (Fiber) tab under Metro Ethernet product: $2,000+(Value from $/f
oot table)*#of feet to manhole
b.
Capital (Equipment) tab under Metro Ethernet product: $4,000
4)
Repeat for all EFM eligible MOE sites
5)
Change Waiver Standard OMC capital to Yes
6)
Go to IS-Time View tab
7)
Expand Depreciation Expense Rows (94-114), copy all the rows, then Paste
Special Values
8)
Go back to Capital tabs and modify the formulas as follows:
a.
Capital (Fiber) tab: ( $2,000+(Value from $/foot table)*#of feet to manh
ole)*10% for every year of the term (i.e. 10% for 12 months, 20% for 24 months,
30% for 36 months, etc.)
b.
Capital (Equipment) tab: $4,000*20% for every year of the term (i.e. 20
% for 12 months, 40% for 24 months, 60% for 36 months, etc)
9)
Price the deal as you normally would with market pricing in mind
Capital Guidelines:
Additional Capital Requirements
Additional capital/COGS will be incorporated to address conduit build requiremen
ts if applicable (i.e. additional $13k used for fiber
non-allocated)
Opportunity Qualification Requirements:
Average capital must be $50,000 or less per site inclusive of fiber and equipmen
t
The fiber capital table in the previous slide is only valid for fiber builds of
one mile or less
Fiber builds greater than one mile will use capital estimates provided by CNDC
CNDC provided capital will utilize the same allocation methodology proposed in t
his financial solution subject to the $50,000 or less average per site restricti
on
Opportunity escalations (i.e. EWG, Puckett Review and Complex Transactions) will
use the total (i.e. non allocated) capital to determine the appropriate escalat
ion requirement
$500K total capital for EWG
$1.0M total capital for Puckett Review
$10.0M total capital for Complex Transaction

Pricing Guidelines:
MOE
do not price below TSLRIC
ELA:
5 10 Meg Loop+Port - $700-$1,000 range
20-50 Meg Loop+Port - $1,100 - $1,600 range
60 100 Meg Loop+Port - $1,700 - $2,300 range
100 300 Meg Loop+Port - $2,200 - $2,800
400- 700 Meg Loop+Port - $3,100 - $4,500
800 1000 Meg Loop +Port - $3,500 +