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What is GRUCom?

GRUCom is the Gainesville area's only all-fiber-optic network, with more than 600 miles of fiber in Alachua County

Business to business provider for small businesses, up to large multi-location corporations
Own and operate 13 cell towers
Licensed CLEC in State of Florida
Local Network Operations center assures customer connections are always supported and protected
Our network is trusted by some of the most respected organizations in the area and is the backbone of all public safety communications in the county

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How & Where are Services Delivered?

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How & Where are Services Delivered?

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Traffic Management Fiber

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GRUCom’s �Standard Service Portfolio

Data & Telecommunications Services

Carrier Access Services (Interexchange, Local Access & Cell Site Backhaul)
Commercial Data Transport Services (Private Line & Special Access Service)
Commercial Internet Access Services (Enterprise and Business Class)
Residential Internet Access Services (GatorNet Wholesale and GatorNet Retail)
Dial-Up Internet Access Service (GRUNet Internet)
Central Office Data Center Co-Location Services

Communications Tower Leasing
Trunked Radio Services (Public Safety Radio System)

GRUCom (www.grucom.com) is the Gainesville area's only all-fiber-optic communications service provider. With more than 500 miles of fiber network deployed, GRUCom provides data and Internet services to business customers located throughout Alachua County. A recent expansion through a contract with Alachua County School board, enabling 10 Gigabit (10,000Mb) service at each school, has extended the fiber network service to be available to businesses in Alachua, Archer, Newberry, Hawthorne and High Springs. GRUCom has been offering 1 Gigabit (1,000Mb) business service over our system since 2005; GRUCom currently offers businesses speed options up to 10 Gigabit. GRUCom also owns and manages the public safety radio system used by law enforcement and fire rescue personnel throughout the county and owns and operates thirteen cellular communications towers around Gainesville and leases space to all national cellular carriers allowing them to provide wireless personal communications services in the area.

GRUCom also provides residential Internet access, with speed options available up to 1 Gigabit, to select communities throughout Gainesville and Alachua County under the brand name of GATOR NET (www.gator.net). The homeowner’s association, property owner/developer or property manager of each of our forty-four GATOR NET Exclusive Communities has made arrangements to make fiber optic services available on behalf of their residents by entering into a bulk service contract with GRUCom. We are always happy to speak with HOA, developer and property management representatives about the possibility of expanding our services into their community.

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What Makes GRUCom’s Network Unique?

All fiber network
Design focus is on moving data
Network design insures capacity and reliability through route diversity
Route diverse Internet connectivity to Atlanta and Miami with multiple Internet providers
Established peering arrangements with major content services (Netflix, Google, YouTube, Apple, Amazon)
Strategic partnerships with National, regional and local transport providers expands service capability beyond the physical network

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How is GRUCom Different from the rest of GRU?

GRUCom service is discretionary; no one is obligated to purchase GRUCom services

There are ~10 viable alternative competitors operating in Gainesville

GRUCom operates within an open and competitive market

Direct competitors are Cox Communications and AT&T (f.k.a. Bellsouth)

GRUCom rates are market-based and are negotiable

Pricing is quoted from a “standard” rate sheet but we will move based on competitive pressure

GRUCom is a contract service with fixed pricing and term requirements

It is not a pay-as-you-go, consumption based service

All sales and most customer service matters are handled directly by GRUCom staff

Two dedicated GRUCom Account Managers provide majority of customer account support

Most billing and A/R matters are handled directly by GRUCom staff

Separate dunning process in SAP for all GRUCom accounts

GRUCom maintains three unique marketing brand logos and web page domains

www.grucom.com
www.gator.net
www.gru.net

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GRUCom Customers

ALACHUA COUNTY

VERIZON WIRELESS

GRU OPERATIONS

AT&T MOBILITY

SPRINT

EARTHLINK

CITY OF GAINESVILLE (G.G.

ALACHUA COUNTY PUBLIC SCHOOLS

T-MOBILE

CABANA BEACH

VA MEDICAL CENTER

GRU INFORMATION TECHNOLOGY

METROPCS

FLORIDA PHONE SYSTEMS

SHANDS TEACHING HOSPITAL AND CLINICS INC

UNIVERSITY OF FLORIDA

NORTH CENTRAL FL HOSPICE INC

ACCELERATIONNET

TRIMARK

WEST 20 Student Housing

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GRUCom Revenues

Revenue Item

Telecommunications

Public Safety Radio

Tower Lease Rental

Other Income

Total

FY18 Actuals

$7,734,382

$1,759,037

$1,820,064

$49,506

$11,362,989

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Revenue Trends

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Strategic Goals

Revenue

Target new customers in expansion areas (SBAC)
Evaluate residential service options
Increase revenue from existing customers
Invest in proactive buildout of commercial zones

Expenses

Identify/eliminate/reduce unnecessary direct/indirect expenses
Reduce capital budget and expenses
Restructure debt

Business Development

Identify product bundling opportunities
Articulate value proposition (local, reliable, accessible, technologically superior, high-capacity)
Identify standards and process for on-net, near-net, and off net quoting

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GRUCom Major Initiatives

Voice switch
Billing software implementation
C/O Electric/AC upgrade
Trunking Radio System upgrade
AMI

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Questions from Commission…

Expand Connectivity

2009 study found that 99% have access to Broadband
Residential provider states speeds up to 150 mbps in service area
In many cases LTE service in the area exceeds 25 mbps

Lower Prices

CONNECT2Compete:

for families participating in SNAP, TANF and the National School Lunch Program ($9.95 for 5 mbps, no deposit required, contracts to sign, installation or modem rental fees )
for families living in HUD-assisted housing with school-age children ($9.95 up to 10 Mbps, free WiFi, free installation)

FCC Lifeline:

discount on phone service for qualifying low-income consumers
2016 Lifeline Modernization Order included broadband as a support service in the program

Increase Speeds

GRUCom offers speeds up to 1 Gbps (since 2005), and can offer up to 10 Gbps

End the Digital Divide

SBAC: GRUCom provides 10 Gbps enabled service to each school, scalable 20 Gbps
Alachua County Library District: GRUCom provides broadband service to every library branch throughout the county
GRUCom capability and sales drove 4G/LTE service implementation in Alachua county a year or more before similar sized markets

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Broadband Connectivity Subcommittee

Primary Goals

- Lower prices and increased speeds for residents

- Lower prices and increased speeds for businesses

- Everyone has access to municipal network in designated areas

Secondary Goals

- Lowest priced gigabit internet for residential service in the United

States

- Lowest priced internet for businesses in the United States

- Universal free service to all residents served

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