Capital and Operating Costs for a Full-Time National Video Channel:
Report by ADEC Digital Infrastructure Task Force
All ADEC Meeting:
Tuesday, March 7, 2000
ADEC plans to implement a twenty-four hour a day, seven day a week (24/7) video channel that can be broadcast by EchoStar, DirecTV and cable operators and be received in the home, workplace and in ADEC member learning centers.
Cost estimates are provided for three operational categories:
-
Head-End Carriage
- Technical Support and Engineering at the Channel Aggregation Location
- Program Management
HEAD-END CARRIAGE:
Capital Costs:
None.
Operating Costs:
EchoStar and DirecTV are charging a monthly fee to most programmers (FCC
98-307). Fees are subject to change pending the outcome of FCC evaluation
of ADEC Informal Complaint regarding EchoStar charges. ADEC expects
that cable headends will carry the ADEC Channel on public access space
without charge.
| Monthly Fee-DirecTV-currently @ $6,350/mo for most applicants: | $76,2000 |
| Monthly EchoStar @ $10,372/MO: | Alt.$124,464 |
|
Total:
|
$76,200 Alt.$124,464 |
TECHNICAL SUPPORT AND ENGINEERING AT THE CHANNEL AGGREGATION LOCATION:
The ADEC Channel Aggregation Location will:
- Receive programming from ADEC members. The Internet will be the recommended
first choice for program delivery. Programming may also be delivered
on videotape or DVD. Live programming will be received on a scheduled
basis by Internet or by analog or digital satellite.
- Programming will be aggregated into a seamless 24/7 ADEC Channel Program
Schedule.
- Aggregated programming will be encoded into MPEG II for transmission
to the DBS and cable headends over broadband Internet. Channel mapping
data will also be maintained and transmitted to the headends from this
location.
- The Channel will be monitored and customer support will be provided.
The Channel Aggregation Location cost estimates are represented in two stages.
Stage I:
This period will cover the startup phase of operation for the ADEC Channel.
Stage I will have an estimated duration of one to two years. Costs are
based on the assumption that the vast majority of programming will be
provided to the Channel Aggregation Center via broadband Internet or on
video tape or DVD. Live programming may be delivered on a tightly managed
schedule via Internet or schedule for reception on the host site's existing
satellite downlink facilities. This stage would also provide for the delivery
of programming from members during off-peak (late night) periods via IP
multicasting and broadband Internet for delayed retransmission on the
ADEC Channel. The aggregated ADEC Channel programming schedule will be
transmitted to DBS and cable headends over the broadband Internet backbone.
Only the quality control and testing necessary to meeting minimum requirements of the DBS or cable providers will be installed during this stage.
Stage II:
This stage may simply be a continuation and improvement of the facilities
and services provided in Stage I. It is anticipated, however, that increased
demand for live programming will require the addition of dedicated satellite
backhaul facilities and the addition of improved monitoring and testing
equipment and procedures. ADEC will continue to encourage members to transmit
most live and delayed programming to the Channel Aggregation Center on
the broadband Internet. It is possible that more sophisticated digital
editing and production equipment may be required as well as some additions
to studio facilities. ADEC anticipates that increasing numbers of cable
providers, some of which can only receive programming from satellite feeds,
will be candidates for carriage of the ADEC Channel.
Capital Costs:
The business plan assumes that some existing equipment located at the NCC host site will be used during Stage I and that charges for use of this equipment will be budgeted under operating expenses. The business plan assumes that this condition will continue into Stage II, and that additions to the equipment inventory will be added incrementally out of annual capital budgets to either supplement or replace host site equipment.
| CAPITAL COST SUMMARY |
Stage I
|
Stage II
|
|---|---|---|
|
|
||
| Digital IRDs; Magnitude, Wegener: | $ 3,000 | |
| Digital IRDs; PowerVU, NDS: | $ 3,000 | |
| Backhaul Receive Antenna w/4-port feed, 2Ku & 2 C LNBs Steerable with de-icing: | $15,000 | |
| Analog Receiver, Antenna control Unit and additional DigiCipher II IRD: | $ 4,000 | |
| Digital Encoding for Ku-Band Satellite Uplink, Single Channel MCPC: | $125,000 | |
| Amplifiers, monitors and test equipment: | $10,000 | $25,000 |
| S-VHS Tape Deck | $ 4,600 | |
| Beta-SP Tape Deck-Play only: | $13,640 | $13,640 |
| Beta-SP Tape Deck-Record/Play: | $20,500 | |
| Digital Editing Suite: | $25,000 | $40,000 |
|
Total:
|
$56,240 |
$246,140 |
Operating Costs:
Estimates for Personnel costs at the NCC include benefits:
| Sr. Management @ 0.5 FTE. The expense represents an assessment to support the Sr. management services provided by the Host Site: | $47,200 |
| Engineering @ 1.5 FTE. This expense will support engineering contributions by the Host Site for the 24/7 operation of the ADEC Channel: | $79,080 |
| Technical & Support @ 4.5 FTE. Represents Para-professional responsibilities for operating the 24/7 ADEC Channel: | $118,000 |
| Clerical @ 0.5 FTE: | $15,150 |
|
Total Personnel:
|
$259,430 |
Estimates for Non-Personnel Direct Operation Costs:
|
Transit Charges for delivery of Aggregated ADEC Channel to DBS and Cable headends:
|
$60,000 |
| Terrestrial Telecommunication Charges @ 400/month: | $ 4,800 |
| Utilities and Expendable Supplies: | $15,200 |
| Amortization for Host Site Equipment: | $20,000 |
|
Total Direct:
|
$100,000 Alt. $370,000 |
PROGRAM MANAGEMENT:
Capital Costs:
| Computer Hard/software -- 2 @ $25,000: | $ 5,000 |
|
Total:
|
$ 5,000 |
Operating Costs:
Estimates for Program Management Personnel Costs Including Benefits:
| Program Manager @ 1.0 FTE. This is a Senior Management Position in charge of management, oversight and marketing for the ADEC Channel: | $90,000 |
| Administrative Assistant @ 1.0 FTE. This is a mid-level management position: | $40,000 |
|
Total:
|
$130,000 |
Non-personnel direct operating cots are incorporated into the annual ADEC operating budget.
SUMMARY:
| Capitol Costs (one-time expenditure) | Stage I | Stage II |
|---|---|---|
|
|
||
| Head-End Carriage: | $0 | $0 |
| Tech/Engineering: | $56,240 | $246,140 |
| Program Management: | $5,000 | $0 |
|
Total:
|
$61,240 |
$246,140 |
Operating Costs (annual):
The differences between the Standard and Alternate estimates provide a
low and high estimate of operation costs for the system based on the assumption
outlined above.
| Stage I | Stage II | |
|---|---|---|
|
|
||
| Head-End Carriage: | $76,200 | $124,464 |
| Tech/Engineering: | $359,430 | $629,430 |
| Program Management: | $130,000 | $130,000 |
|
Total:
|
$565,630 |
$883,894 |