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The ultimate network<br />

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• Premium installation and marketing tools - Use the appeal<br />

of FiOS to fill your units<br />

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Fill your units with the ultimate network! Contact a sales representative today.<br />

VISIT verizon.com/communities CALL 1.888.376.5472<br />

* Service usage and content availability restrictions apply. Flex View not currently available in Buffalo, NY. FiOS available in select areas. Actual speeds may vary. Battery back up for standard fiber-based voice,<br />

FiOS Digital Voice and E911 (but not other voice services) for up to 8 hours. Call for details. ©2011 Verizon. D3375-1


Puzzle Solved!<br />

After 30 years and 900,000 access lines, Brian Schrand has a passion for<br />

building fiber networks.The challenge of building a high-performance network –<br />

on time and within budget was a complex puzzle that didn’t seem to have<br />

an answer. He knew when he saw the Clearview Cassette, that it was an<br />

industry-changing technology that could reduce the cost of fiber deployment in<br />

the central office, OSPand access network.<br />

Andy Betscher, field operations specialist at Cincinnati<br />

Bell concurs, “The simplicity of the Clearview Cassette<br />

and its ability to be installed into different enclosures<br />

gives our technicians the ease and efficiency we need to<br />

significantly minimize labor cost.”<br />

Join us the firstTuesday of every month at www.<strong>Fiber</strong>Puzzle.com for a live<br />

web-based discussion group on fiber challenges – and solutions.And to get our<br />

take on a fiber deployment puzzle you’re currently facing, drop Brian a note at<br />

brianschrand@clfd.net.<br />

Solving the fiber puzzle, 12-ports at a time.<br />

800.422.2537 www.ClearfieldConnection.com www.<strong>Fiber</strong>Puzzle.com


Coming Soon:<br />

<strong>Broadband</strong> <strong>Properties</strong> is changing its name.<br />

<strong>Broadband</strong>Communities


Why Is BroadBand ProPertIes<br />

ChangIng Its name?<br />

A conversation with Scott DeGarmo, CEO of <strong>Broadband</strong> <strong>Properties</strong>.<br />

Q. Why the name-change? Will the magazine’s mission and content change too?<br />

A. It’s always a big step when a well-established publication changes its name. We are changing because<br />

we’ve expanded our coverage from our original focus – private cable service in multifamily housing – to a<br />

much wider one, advanced broadband and its impacts on communities of many kinds. Many of the changes<br />

reflected in the new name, <strong>Broadband</strong> Communities, have been introduced over the past six or seven years.<br />

So, while the new name in some ways marks a beginning, it also confirms changes already made.<br />

Q. Why didn’t you change the name earlier?<br />

A. <strong>Broadband</strong> <strong>Properties</strong> has been a strong brand with a positive identity. We held onto it until we felt we’d<br />

truly expanded beyond the scope of the name.<br />

Q. Why is this a good time to change your name?<br />

A. It’s best to change from a position of strength, and that is where we are in terms of our outstanding<br />

editorial product, the ongoing success of the Summit, our audience growth and our continually expanding<br />

online offerings, including webinars.<br />

Q. The property owners you serve shouldn’t have a problem with your new name.<br />

A. Right. They view their properties as communities, and advanced broadband is one of their major tools for<br />

creating a sense of community. Connectivity not only brings residents closer to the outside world but also<br />

helps them interact with one another.<br />

Q. The magazine also serves towns and cities and the municipal officials who make decisions<br />

about broadband.<br />

A. The term “community” resonates with these leaders, who see advanced broadband as a way to strengthen<br />

their communities economically and improve their quality of life. Economic development professionals,<br />

educators and broadband champions share the same view. And, by the way, it’s not just towns and cities.<br />

<strong>Broadband</strong> is vital to all kinds of communities, ranging from student living to retirement villages, and from<br />

brand-new planned-unit developments to 200-year-old farming communities.<br />

Q. What about telcos, cable companies, utilities and other providers?<br />

A. They serve communities as well – in fact, many of the smaller providers have long traditions of involvement<br />

with the rural communities they serve. Our coverage of the challenges and successes of deploying<br />

advanced broadband in various kinds of communities has relevance to all types of network builders.<br />

Q. “Community” also suggests strong connections between people and emotional involvement.<br />

Is that what you are trying to convey in a magazine about telecommunications?<br />

A. An example: We just received an invitation to a street party in Florida to attend the launch of a fiber-tothe-home<br />

network. The invitation was charged with words like “excitement” and “celebration.” While you<br />

could view it as just a marketing event, citizens do indeed view such launches as important milestones for<br />

themselves, their families and their communities.<br />

Q. What about your website? Will that change?<br />

A. We have the URL broadbandcommunities.com, so we will make that the new destination for visitors. We<br />

will also have an abbreviated form of that name for ease of use.<br />

Q. Many magazines have made the switch entirely to digital. Is that coming?<br />

A. We will continue to increase our total circulation – with readers of our digital editions, including a planned<br />

iPad edition, gradually becoming a larger portion of the mix, based on their own choice.<br />

ExPAndEd AUdIEnCES • nEW EdITORIAL FEATURES • AddEd COnTRIBUTORS • dIgITAL & PRInT PUBLICATIOnS<br />

• MORE E-nEWSLETTERS • REFURBIShEd WEBSITE • WEBInARS • InTERACTIvE dATABASES • LEAd<br />

gEnERATIOn • BLOgS • CUSTOM RESEARCh • TARgETEd EMAIL BLASTS • vIdEO • ChARTER Ad RATES<br />

• InTEgRATEd MARkETIng • PROgRAMS • vIRTUAL EvEnTS • RESEARCh • CUSTOM PUBLIShIng • AUdITEd dATA


EDITORIAL DIRECTOR<br />

Scott DeGarmo<br />

PUBLISHER<br />

Nancy McCain<br />

nancym@broadbandproperties.com<br />

CORPORATE EDITOR, BBP LLC<br />

Steven S. Ross<br />

steve@broadbandproperties.com<br />

EDITOR<br />

Masha Zager<br />

masha@broadbandproperties.com<br />

ADVERTISING SALES<br />

Irene G. Prescott<br />

irene@broadbandproperties.com<br />

MARkETING SPECIALIST<br />

Meredith Terrall<br />

meredith@broadbandproperties.com<br />

DESIGN & PRODUCTION<br />

Karry Thomas<br />

CONTRIBUTORS<br />

Joe Bousquin<br />

David Daugherty, Korcett Holdings Inc.<br />

Richard Holtz, InfiniSys<br />

W. James MacNaughton, Esq.<br />

Henry Pye, RealPage<br />

Bryan Rader, Bandwidth Consulting LLC<br />

Robert L. Vogelsang, <strong>Broadband</strong> <strong>Properties</strong> Magazine<br />

<strong>Broadband</strong> <strong>Properties</strong> LLC<br />

PRESIDENT & CEO<br />

Scott DeGarmo<br />

SENIOR VICE PRESIDENT<br />

CHIEF FINANCIAL OFFICER<br />

Himi Kittner<br />

VICE PRESIDENT,<br />

BUSINESS & OPERATIONS<br />

Nancy McCain<br />

AUDIENCE DEVELOPMENT/DIGITAL STRATEGIES<br />

Norman E. Dolph<br />

CHAIRMAN OF THE BOARD<br />

Robert L. Vogelsang<br />

VICE CHAIRMAN<br />

The Hon. Hilda Gay Legg<br />

BUSINESS & EDITORIAL OFFICE<br />

<strong>Broadband</strong> <strong>Properties</strong> LLC<br />

1909 Avenue G<br />

Rosenberg, Tx 77471<br />

281.342.9655, Fax 281.342.1158<br />

WWW.BROADBANDPROPERTIES.COM<br />

<strong>Broadband</strong> <strong>Properties</strong> (ISSN 0745-8711) (USPS 679-050)<br />

(Publication Mail Agreement #1271091) is published 7 times<br />

a year at a rate of $24 per year by <strong>Broadband</strong> <strong>Properties</strong> LLC,<br />

1909 Avenue G, Rosenberg, TX 77471. Periodical postage<br />

paid at Rosenberg, TX, and additional mailing offices.<br />

POSTMASTER: Please send address changes to <strong>Broadband</strong><br />

<strong>Properties</strong>, PO Box 303, Congers, NY 10920-9852.<br />

CANADA POST: Publications Mail Agreement #40612608.<br />

Canada Returns to be sent to Bleuchip International, PO Box<br />

25542, London, ON N6C 6B2.<br />

Copyright © 2011 <strong>Broadband</strong> <strong>Properties</strong> LLC. All rights<br />

reserved.<br />

Editor’s Note<br />

Everything’s<br />

Up to Date In<br />

Kansas City<br />

The Google fiber project in Kansas City has<br />

captured the nation’s attention.<br />

As everyone with enough interest<br />

in broadband to read this magazine<br />

already knows, Google recently<br />

announced the location for its first<br />

gigabit fiber network: Kansas City, Kan.<br />

That’s great news for the citizens of<br />

Kansas City and maybe for other cities<br />

whose turn will be coming soon. Although<br />

the newspapers of the other 1,100<br />

communities that submitted proposals to<br />

Google all ran headlines with variations<br />

on “Google Snubs Us,” project leader<br />

Milo Medin made clear that, if all goes<br />

well, Google intends to build similar networks<br />

in multiple cities.<br />

Strong support from the governor,<br />

mayor and schools chief; enthusiastic<br />

participation by community organizations<br />

that included a university medical<br />

center, a tech industry alliance and a<br />

foundation supporting entrepreneurship;<br />

and access to physical infrastructure that<br />

will make the buildout cost-efficient were<br />

all reasons that Google gave for selecting<br />

Kansas City.<br />

Yet dozens of other applicants had<br />

similar assets, so commentators have been<br />

working overtime speculating about the<br />

real deciding factor. Does Google plan<br />

to buy Sprint, which is headquartered<br />

nearby? Does it intend to contract out the<br />

installation to SureWest, which also operates<br />

in the Kansas City area? Will Kansas<br />

City-Wyandotte County’s unified<br />

government allow Google to expand the<br />

network with a minimum of red tape? If<br />

you’re attending the <strong>Broadband</strong> <strong>Properties</strong><br />

Summit, you will have a chance to<br />

ask Megan Stull, telecom policy counsel<br />

4 | BROADBAND PROPERTIES | www.broadbandproperties.com | March/april 2011<br />

for Google, when she speaks at the Economic<br />

Development Program. (I can’t<br />

promise she will divulge the answer.)<br />

Our GOOGle MOMent<br />

More interesting than why Google selected<br />

Kansas City is what will happen as<br />

a result. From a technical standpoint, this<br />

project is not radically new, even for the<br />

U.S. The competitive provider Paxio has<br />

operated an open-access gigabit fiber network<br />

in the San Francisco Bay Area for<br />

several years. EPB <strong>Fiber</strong> Optics, the municipal<br />

provider in Chattanooga, Tenn.,<br />

offers 1 Gbps service throughout the city.<br />

Case Western Reserve University has a<br />

gigabit fiber pilot program in a low-income<br />

neighborhood of Cleveland. (EPB<br />

and Case are represented at the Summit,<br />

too.) A number of other FTTH operators<br />

offer gigabit service to businesses.<br />

Google is different because – well,<br />

because it’s Google. People all over the<br />

country pay attention to what Google<br />

says, and in this case, it should have<br />

much of interest to say. By sharing publicly<br />

what it learns about deploying fiber,<br />

about making the open-access model<br />

work and about new high-bandwidth applications,<br />

the company could, in effect,<br />

conduct a crash course on broadband for<br />

the entire country. We hope that the project<br />

will make FTTH a household word.<br />

So welcome Google, welcome Kansas<br />

City, and welcome the gigabit era!<br />

Masha@broadbandproperties.com


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DEPARTMENTS<br />

editor’s note . . . . . . . . . . . . . . . . . . . . . . . . . . 4<br />

Advertiser Index . . . . . . . . . . . . . . . . . . . . . . .132<br />

Calendar . . . . . . . . . . . . . . . . . . . . . . . . . . . .132<br />

IN THIS ISSUE<br />

Provider Perspective<br />

new Perspective From Old Headlines | 8<br />

By Bryan J. Rader ■ Bandwidth Consulting LLC<br />

Today’s ‘game changers’ may turn out to be next year’s also-rans.<br />

Owners Corner<br />

Bulk Services Make<br />

Sense for Student Housing | 10<br />

By Henry Pye and Chris Acker ■ RealPage Inc.<br />

Bulk service agreements may have lost favor in conventional housing,<br />

but they are still important in student housing communities.<br />

Metrics<br />

Performance Metrics:<br />

Beyond the noise Factor | 12<br />

By David Daugherty ■ Korcett Holdings Inc.<br />

Proactive steps that property owners can take.<br />

Property of the Month<br />

Horizon Bay at Hyde Park, tampa, Fla. | 16<br />

By Joe Bousquin ■ Contributing Editor, <strong>Broadband</strong> <strong>Properties</strong><br />

In the first new retirement community built in Tampa in 20 years,<br />

fiber services help residents stay active and engaged.<br />

<strong>Fiber</strong> Deployment Strategies<br />

Allied <strong>Fiber</strong> nationwide<br />

network uses Bold new Approach | 20<br />

By Joan Engebretson ■ Telecom Writer<br />

Allied <strong>Fiber</strong>’s unusual design promises to bring fiber access to hundreds<br />

of smaller, bypassed communities around the country.<br />

the law<br />

Cable Home Wiring<br />

rules and Cable Competition | 40<br />

By Carl E. Kandutsch ■ Attorney<br />

MDU owners trying to foster cable competition may be able to use<br />

FCC rules that were devised for consumer protection purposes.<br />

FCC to Impose new Disability<br />

Access rules on Service Providers | 44<br />

By Robert D. Primosch ■ Wilkinson Barker Knauer LLP<br />

The FCC is developing new rules for making video, VoIP, messaging<br />

and videoconferencing services more accessible.<br />

Industry Analysis<br />

Consolidation in the<br />

telecommunications Industry | 46<br />

By Jill Kasle ■ Th e George Washington University<br />

A generation ago, Judge Greene broke up the telecom industry.<br />

Now, the pieces are reassembling in new ways.<br />

Table of Contents<br />

HoT PRoDUCTS<br />

CovER SToRy<br />

6 | BROADBAND PROPERTIES | www.broadbandproperties.com | March/april 2011<br />

<strong>Broadband</strong> <strong>Properties</strong>’ 10th Annual<br />

list of leading <strong>Broadband</strong><br />

technologies and Services | 26<br />

Learn about this year’s latest and greatest broadband products …<br />

and then see them at the BBP Summit.<br />

FIBer-tO-tHe-HOMe PrIMer:<br />

Advantages of Optical Access | 51<br />

The fifth annual edition of the <strong>Fiber</strong>-to-the-Home Primer, produced<br />

in association with the <strong>Fiber</strong>-to-the-Home Council, is a<br />

comprehensive guide to FTTH for builders, developers, municipal<br />

officials and service providers.<br />

Independent telcos<br />

FttH and Independent telcos | 48<br />

By Masha Zager ■ <strong>Broadband</strong> <strong>Properties</strong><br />

More than 100 new telcos were added to the list since last year.<br />

Modeling the Cost Of<br />

rural <strong>Fiber</strong> Deployment | 106<br />

By Masha Zager ■ <strong>Broadband</strong> <strong>Properties</strong><br />

A new study provides the first reliable rural FTTH cost model.<br />

technology<br />

Making the Most of a <strong>Fiber</strong> network | 110<br />

By Irit Gillath ■ Telco Systems<br />

A small ILEC in Alaska offers sophisticated Carrier Ethernet services<br />

and mobile backhaul. Here’s how it’s done.<br />

Fundamental FttH<br />

Planning and Design: Part 2 | 114<br />

By David Stallworth ■ OFS<br />

Proper placement of fiber routes can have a great impact on cost.<br />

Municipal <strong>Fiber</strong> networks<br />

Community <strong>Fiber</strong> networks<br />

Succeed through Marketing | 118<br />

By Craig Settles ■ Communities United for <strong>Broadband</strong><br />

Marketing involves learning what customers expect – and meeting<br />

those expectations.<br />

Worst Practices in Community <strong>Broadband</strong> | 122<br />

By Andrew Michael Cohill, Ph.D. ■ Design Nine Inc.<br />

Ten mistakes community broadband networks make (and how to<br />

avoid them).<br />

Building a nationwide<br />

Open-Access network | 126<br />

By Ronald Corriveau ■ COS Systems<br />

By automating service management, a Swedish network operator costeffectively<br />

manages the networks of more than 40 municipalities.<br />

<strong>Broadband</strong> Apps<br />

the low-latency Service Opportunity | 128<br />

By Brian Quigley ■ ADVA Optical Networking<br />

How low can you go? Financial trading firms are willing to pay a<br />

premium for low-latency services. Other industries will follow them.


We’ll give your residents<br />

what they want —even before<br />

they know they want it.<br />

Technology is magical. The excitement it creates turns us all into kids again.<br />

If it also makes life easier, we put it to work. A good example is Time Warner<br />

Cable 4G Mobile Internet. Customers didn’t know they wanted the speed and<br />

freedom of Internet on the go. Now, they can’t live without it. You expect<br />

nothing less. Time Warner Cable delivers.<br />

To learn more about partnering with Time Warner Cable, simply contact<br />

Joanne C. Luger at 703.345.2749 or email joanne.luger@twcable.com<br />

© 2011 Time Warner Cable Inc. All rights reserved, Time Warner Cable and the eye/ear logo are trademarks of<br />

Time Warner Inc., used under license.


Provider Perspective<br />

New Perspective<br />

From Old Headlines<br />

Video streaming is heralded as the death knell for the cable industry. Now,<br />

where have we heard that before?<br />

By Bryan Rader ■ Bandwidth Consulting LLC<br />

Sometimes looking back at history<br />

helps us gain perspective on<br />

today’s trends. For example, consider<br />

January 10, 2000.<br />

The business headlines that day all<br />

concerned a merger that created a “digital<br />

media powerhouse.” The press was<br />

celebrating a new force in the media and<br />

cable industries. A new player was in<br />

town. The cable guys should be shaking<br />

in their boots. What had happened?<br />

America Online had bought Time<br />

Warner for $182 billion in stock and<br />

debt. The deal “combined the nation’s<br />

top Internet service provider with the<br />

world’s top media conglomerate” and<br />

“redefines what the next generation of<br />

digital-based leaders will look like,” the<br />

newspapers asserted.<br />

Many said the alliance was unbeatable.<br />

People called it a game changer<br />

and a winner and said the merged entity<br />

would be an all-star platform that would<br />

impact music, publishing, news, entertainment<br />

and cable.<br />

However, the AOL offering never<br />

justified these expectations. Yes, a cosmic<br />

shift seemed to be occurring. Suddenly,<br />

almost 30 million users were<br />

paying $19.95 each for dial-up AOL<br />

Internet connections. AOL was new. It<br />

was fresh. It was a great way to send and<br />

receive content. But a game changer?<br />

Not quite. Consumer behavior was<br />

changing and content consumption was<br />

moving online, but none of that radically<br />

impacted the cable business.<br />

So many smart people got it wrong.<br />

Ted Turner supported the merger. Dick<br />

Parsons approved it. Gerald Levin com-<br />

mitted to it. And Steve Case – well, he<br />

was too busy counting the beans he<br />

earned from the deal to worry about it.<br />

Within 10 years, AOL became a<br />

sleepy collection of websites, and its 30<br />

million subscribers signed up for broadband<br />

from Comcast, AT&T or FiOS.<br />

IS tHIS AnOtHer AOl MOMent?<br />

Which of today’s headlines will be interesting<br />

to revisit in a decade? How about<br />

“Netflix Tops 20 Million Subscribers”<br />

or “Why Netflix Will Beat Cable in the<br />

21st Century”?<br />

Yes, there is incredible enthusiasm<br />

for streaming movies to computers and<br />

iPads – enough to make Amazon, Red-<br />

Box, Roku, Apple and others jump into<br />

this business. But although these third<br />

parties may have created the category<br />

and have surely captured consumers’ interest,<br />

cable companies are still clearly in<br />

the driver’s seat.<br />

Cable operators own the pipe to the<br />

consumer. We can offer movie streaming<br />

as part of a cable subscription and<br />

provide real quality of service as well as<br />

content on demand. Netflix and Amazon<br />

just offer collections of content running<br />

on someone else’s network. In fact, the<br />

new entrants are slowly commoditizing<br />

their own movie-streaming businesses.<br />

8 | BROADBAND PROPERTIES | www.broadbandproperties.com | March/april 2011<br />

Ten years ago, people thought AOL<br />

would redefine the cable business. Experts<br />

said AOL would buy AT&T <strong>Broadband</strong><br />

and become the leading provider of<br />

cable services in the United States. Yes,<br />

AOL was first in the online world and developed<br />

a very attractive product, just as<br />

Netflix has. But it wasn’t sustainable, and<br />

it certainly wasn’t a game changer.<br />

The same is true today for Netflix.<br />

It’s a great concept, and it’s very cheap.<br />

However, it has not led to the cord-cutting<br />

that many predicted last year, and it<br />

has not even led to declining cable bills.<br />

In fact, Cablevision recently surpassed<br />

$150 a month average revenue per customer.<br />

Wow!<br />

Netflix, like AOL before it, is an incremental<br />

service. There is room on the<br />

shelf for this product and others like it.<br />

But as cable operators catch up by increasing<br />

their on-demand video libraries,<br />

headlines will change once again.<br />

Rereading old AOL headlines can<br />

help us put the Netflix effect into perspective<br />

and share this insight with our<br />

clients. Strong operators see the video-<br />

streaming trend as an opportunity<br />

rather than an event that shifts power to<br />

the new players.<br />

I can’t wait to read those headlines in<br />

10 years. BBP<br />

About the Author<br />

Bryan Rader is CEO of Bandwidth Consulting LLC, which he founded in 2007 to<br />

assist providers with their performance in the multifamily market. Prior to starting<br />

Bandwidth Consulting, he founded and ran private cable operator MediaWorks for<br />

10 years. You can reach Bryan at bryanjrader@yahoo.com or at 636-536-0011.<br />

Learn more at www.bandwidthconsultingllc.com.


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Owners Corner<br />

Bulk Services Make Sense<br />

For Student Housing<br />

Bulk services are often criticized, but there are good reasons to continue<br />

offering them in student living communities.<br />

By Henry Pye and Chris Acker ■ RealPage Inc.<br />

nearly every purpose-built student<br />

living development today<br />

provides bulk video and Internet<br />

services. Although bulk services may be<br />

debatable for conventional multifamily<br />

housing communities, including bulk<br />

video and Internet services in a student<br />

resident’s rent has been and continues to<br />

be a good idea.<br />

Every student housing community<br />

fills up with new residents over a one- to<br />

two-day period at the beginning of the<br />

fall term. Initiating service in such a short<br />

time for so many residents would be logistically<br />

difficult without using bulk services.<br />

Most retail services are designed to<br />

accommodate single-family homes and<br />

work well enough in conventional multifamily<br />

communities. In student housing,<br />

in the absence of bulk services, the sheer<br />

number of move-ins over a short period<br />

would cause residents to have to wait at<br />

least a week to get their services up and<br />

running. The fact that many residents<br />

never meet their suite mates until movein<br />

day would further delay coordination<br />

and ordering of services.<br />

Waiting a week or more for services<br />

would be disastrous in student housing.<br />

<strong>Broadband</strong> might as well be water<br />

for students. It’s not just about entertainment<br />

– students have real academic<br />

needs for broadband when classes, which<br />

now almost always have online components,<br />

begin shortly after move-in.<br />

Leasing teams in student communities<br />

face a bizarre incongruity: Even<br />

though their prospective lessees are<br />

the greatest users of video and Internet<br />

services, they have had no experience<br />

purchasing these services either at home<br />

or in on-campus housing. Moreover,<br />

competing leasing teams are teaching<br />

students the cost savings and efficacy of<br />

including video and HSIA in the rent.<br />

AvOIDInG equIPMent DePOSItS<br />

Because most students have slim credit<br />

histories, they often incur significant<br />

deposits for equipment. Digital cable<br />

TV, fiber to the premises, IPTV and<br />

other advances provide wonderful new<br />

services, but they exponentially increase<br />

the cost of the customer-premises equipment<br />

(CPE) required. Students without<br />

bulk services could once obtain video<br />

and Internet services with little effort,<br />

no equipment and very low deposits, if<br />

any; now, many face hundreds of dollars<br />

in deposits and highly involved installations.<br />

Although parents and others can<br />

cosign leases, cosigning service agreements<br />

is next to impossible. Creditworthiness<br />

and deposits have historically<br />

suppressed demand for upgraded video<br />

and Internet services. Notably, as student<br />

living communities began to include the<br />

requisite CPE in bulk services, upgrades<br />

increased significantly.<br />

Bulk services also offer value to student<br />

living communities. Well-negotiated<br />

bulk services can cost as little as 25 percent<br />

of equivalent retail services (though<br />

calculations are difficult because there<br />

are often no retail analogies for student<br />

10 | BROADBAND PROPERTIES | www.broadbandproperties.com | March/april 2011<br />

bulk Internet packages). Offering retail<br />

services also risks angering residents or<br />

their parents, many of whom already feel<br />

nickel-and-dimed by the time they complete<br />

move-in. Requiring a service contract<br />

for basic video and Internet services<br />

that other student housing communities<br />

include in the rent will ensure that some<br />

residents and parents feel cheated. In addition,<br />

parents prefer lumping as many<br />

costs as possible into one rent check.<br />

Finally, management can use bulk<br />

Internet services to communicate with<br />

residents and enforce timely rent payments.<br />

Most bulk multifamily solutions<br />

now include messaging systems. Some<br />

are simple captive portals that force<br />

residents to a community Web page<br />

at login; more advanced systems allow<br />

communities to send messages of differing<br />

levels of urgency to individuals<br />

or groups of residents and get acknowledgements<br />

of receipt.<br />

Many providers now allow management<br />

to slow down Internet speeds of<br />

residents who are late paying their rent.<br />

Finally, various community systems and<br />

services, ranging from access control<br />

cameras to iPads used for leasing, can<br />

piggyback onto bulk Internet services.<br />

Though the strategy is often misunderstood<br />

and criticized, offering bulk<br />

video and Internet services for student<br />

living communities still makes sense for<br />

many reasons. BBP<br />

About the Authors<br />

Henry Pye is vice president of Velocity Advisory Services for RealPage (www.realpage.<br />

com). He can be reached at henry.pye@realpage.com. Chris Acker is director, Velocity<br />

Advisory Services for RealPage and can be reached at chris.acker@realpage.com.


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Performance Metrics:<br />

Beyond the Noise Factor<br />

How a network is designed and provisioned affects an Internet provider’s<br />

ability to deliver satisfactory services.<br />

By David Daugherty ■ Korcett Holdings Inc.<br />

With the growing reliance on<br />

Internet access, good Internet<br />

service is far more than<br />

an amenity – it’s a necessity. Conversely,<br />

poor Internet service isn’t an annoyance;<br />

it’s a deal breaker. In the age of social<br />

networking, irritated residents don’t<br />

take long to make themselves heard. A<br />

single resident, using social sites such as<br />

Facebook and Twitter, can have a significant<br />

impact on occupancy rates.<br />

cussion provides some insight into these<br />

topics and their relationship to Internet<br />

performance. Ultimately, the industry<br />

needs a metrics-based vernacular that<br />

will facilitate the assessment of how well<br />

Internet service providers are performing<br />

in real time.<br />

Internet uPtIMe<br />

Internet uptime is the percentage of<br />

time that Internet services are available<br />

Waiting for residents to make noise is a dangerous<br />

method of measuring service quality; by the time an<br />

accurate measurement is available, residents may<br />

have moved out. Measuring uptime, bandwidth,<br />

oversubscription ratio and infrastructure quality<br />

allows owners to be more proactive.<br />

In the last Metrics column, we<br />

talked about resident noise as a first-<br />

order measure of Internet service quality.<br />

However, waiting for residents to<br />

make noise is a dangerous method of<br />

measuring service quality; by the time<br />

an accurate measurement is available,<br />

residents may have moved out.<br />

Measuring uptime, bandwidth,<br />

oversubscription ratio and infrastructure<br />

quality, which are typically specified<br />

in service agreements, offers a<br />

better chance of catching – and fixing –<br />

Internet service problems before they<br />

drive residents away. The following dis-<br />

to residents, excluding regularly scheduled<br />

maintenance outages. For example,<br />

a “four nines” service level means that<br />

services are available 99.99 percent of<br />

the time, or 525,895 of the 525,948<br />

minutes in a year.<br />

Internet uptime provisions in service<br />

agreements have their origins in com-<br />

About the Author<br />

David Daugherty is the founder and CEO of Korcett Holdings. He can be reached<br />

at david@korcett.com. Korcett Holdings is dedicated to the development and deployment<br />

of next-generation managed service solutions.<br />

12 | BROADBAND PROPERTIES | www.broadbandproperties.com | March/april 2011<br />

mercial services. For some larger corporations,<br />

minutes of downtime can equate to<br />

millions of dollars in lost revenue. In that<br />

case, a definitive value can be assigned to<br />

every minute of Internet downtime.<br />

For residential services, however, the<br />

costs of downtime are not as clear. At<br />

what point, for example, does a multipledwelling<br />

unit (MDU) asset manager<br />

begin to see degraded financial performance<br />

due to poor Internet services?<br />

Residential services do not typically exceed<br />

three nines (99.9 percent uptime),<br />

much less four nines, and are almost always<br />

provided on a best-effort basis.<br />

Best-effort basis is an alternative to the<br />

complex quality of service (QoS) control<br />

mechanisms typically provided in commercial<br />

networks. High-quality communications<br />

services can be provided over a<br />

best-effort network by overprovisioning<br />

bandwidth so that it is sufficient for the<br />

expected peak traffic load. The resulting<br />

absence of network congestion eliminates<br />

the need for QoS mechanisms.<br />

BAnDWIDtH PrOvISIOnInG<br />

To deliver 2 Mbps x 2 Mbps services to<br />

100 residents, a provider could simply<br />

multiply the number of residents by the<br />

size of the pipe (100 x 2 = 200 Mbps).<br />

Provisioning 200 Mbps of bandwidth<br />

would be a very expensive solution,<br />

however.


How is it possible to deliver 2 Mbps<br />

x 2 Mbps service to 100 residents with<br />

anything less than a 200 Mbps pipe? It’s<br />

simple: Oversubscribe a smaller pipe.<br />

Oversubscription is how ISPs have sold<br />

bandwidth since the Internet was born.<br />

It is possible because most Internet data<br />

traffic typically occurs in short bursts.<br />

Serving a large group of users with a<br />

small pipe works because the total cumulative<br />

bandwidth required at any<br />

time is a small fraction of the cumulative<br />

bandwidth that would be required if all<br />

users generated constant-bit-rate traffic.<br />

Figure 1 illustrates the bandwidth<br />

required to deliver bulk Internet services<br />

using oversubscription. For example, the<br />

bandwidth required to deliver 5 Mbps<br />

x 5 Mbps service to each resident is 16<br />

Mbps for every 100 residents. As the<br />

demand for constant-bit-rate services increases,<br />

so will the bandwidth required<br />

to provide bulk Internet services.<br />

In a bulk service arrangement (a<br />

wholesale purchase agreement in which<br />

the owner agrees to buy services for<br />

The Service Provider Challenge:<br />

PrOPerty BAnDWIDtH reCOMMenDAtIOnS Per 100 reSIDentS<br />

Property Cap With<br />

Upselling (Mbps)<br />

Deliver advanved Internet services to:<br />

23 000 subscribers,<br />

9 cities nation wide in a competitive network<br />

Riksnet delivers industry leading internet<br />

services with prices among the lowest on Earth*.<br />

Come and see what COS can do for your network!<br />

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Contractual Cap<br />

(Mbps)<br />

every unit, occupied or not), the contractual<br />

cap is the bandwidth needed<br />

to deliver services to each resident. The<br />

property cap is the bandwidth actually<br />

deployed to the property, which may be<br />

sufficient to allow residents to purchase<br />

Resident Base Rate (Mbps<br />

downstream and upstream)<br />

Residents/<br />

Beds<br />

10 5 1 x 1 100<br />

12 6.25 2 x 2 100<br />

14 7 3 x 3 100<br />

15 7.5 4 x 4 100<br />

16 8 5 x 5 100<br />

17 8.5 6 x 6 100<br />

18 9 7 x 7 100<br />

19 9.5 8 x 8 100<br />

20 10 9 x 9 100<br />

21 10.5 10 x 10 100<br />

Figure 1: Oversubscription allows providers to share bandwidth among customers.<br />

Success story NO.9<br />

* Study by: Point Topic / <strong>Broadband</strong> Tariff Benchmarks -Q3 2010<br />

bandwidth upgrades through Internetbased<br />

service management portals.<br />

OverSuBSCrIPtIOn rAtIO<br />

In an MDU environment where residents<br />

share bandwidth, oversubscrip-<br />

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automates the entire process for adding<br />

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too, because COS just takes care of it all “<br />

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March/april 2011 | www.broadbandproperties.com | BROADBAND PROPERTIES | 13


InFrAStruCture rAtInG<br />

Management Services Potential rating<br />

Design standards compliance with ring or star topology 1 1<br />

Management portals for residents with bandwidth on demand 1 1<br />

Real-time traffic management 1 1<br />

Captive portal messaging 1<br />

Network equipment management and monitoring 1<br />

Post-installation 24 x 7 help desk support 1 1<br />

Access to ongoing performance metrics 1 1<br />

Total 7 5<br />

Percentage of total rating 21.21%<br />

Site Connectivity<br />

<strong>Fiber</strong> connectivity to MAN installed and tested 1 1<br />

<strong>Fiber</strong> connectivity from MDF to IDFs installed and tested 1 1<br />

Spare fiber from MDF to IDFs installed and tested 1<br />

Bandwidth compliance testing to MDF and unit ports 1 1<br />

Cat 5e connectivity from IDFs to unit installed and tested 1<br />

Total 5 3<br />

Percentage of total rating 15.15%<br />

network equipment<br />

Standard compliant network equipment 1 1<br />

Centrally managed switch configs 1 1<br />

Installed spares 1 1<br />

Total 3 3<br />

Percentage of total rating 9.09%<br />

MDF<br />

Power properly grounded equipment and equipment rack 1 1<br />

Wire management and strain relief 1 1<br />

Optical and electrical termination into patch panel 1<br />

Room security 1 1<br />

Room air conditioning 1<br />

Uninterruptible power supply (UPS) 1 1<br />

Out of channel connectivity (terminal server) 1<br />

Total 7 4<br />

Percentage of total rating 21.21%<br />

IDF<br />

Power properly grounded equipment and equipment rack 1 1<br />

Electrical and optical termination into patch panel 1<br />

Wire management and strain relief 1 1<br />

Redundant optical connectivity to MDF 1<br />

Room security 1<br />

Room AC 1 1<br />

Conditioned power 1 1<br />

Total 7 4<br />

Percentage of total rating 21.21%<br />

uDF/unit<br />

Power properly grounded 1 1<br />

Redundant Cat 5e connectivity to IDF 1 1<br />

UDF security 1<br />

Marked Cat 5e wall plates 1 1<br />

Total 4 3<br />

Grand Total 33 22<br />

Percentage of total rating 12.12%<br />

Total Rating 100.00% 66.67%<br />

Infrastructure rating 66.67%<br />

Figure 2: A sample infrastructure scorecard<br />

14 | BROADBAND PROPERTIES | www.broadbandproperties.com | March/april 2011<br />

tion refers to the ratio of the allocated<br />

bandwidth per user to the advertised<br />

bandwidth per user. Underlying the<br />

oversubscription model is the fact that<br />

only a few users will attempt to use their<br />

allocated bandwidth simultaneously.<br />

In a DOCSIS cable network, for<br />

example, the full 38 Mbps download<br />

bandwidth is typically shared by 500<br />

subscribers, each of whom is allocated<br />

up to 7 Mbps. Dividing the maximum<br />

total bandwidth (property cap) of 38<br />

Mbps by the maximum number of simultaneous<br />

users (500) gives an average<br />

bandwidth per user (contractual cap)<br />

of 0.076 Mbps, roughly two orders of<br />

magnitude less than the advertised peak<br />

bandwidth per user of 7 Mbps. In this<br />

example, the download oversubscription<br />

ratio is 92 to 1.<br />

A similar calculation can be performed<br />

using upstream bandwidths.<br />

Advertised DOCSIS upload rates are<br />

typically 4 times less than download<br />

speeds. If 100 subscribers, each allocated<br />

1.75 Mbps of upload bandwidth,<br />

share a single upstream channel, the upload<br />

oversubscription is 17 to 1.<br />

InFrAStruCture<br />

The quality of network infrastructure<br />

has a direct impact on the quality of<br />

services a provider can offer. The infrastructure<br />

rating matrix shown in Figure<br />

2 highlights a number of the pitfalls that<br />

could cause service delivery problems<br />

down the road.<br />

The matrix in Figure 2 assumes an<br />

Ethernet network for several reasons:<br />

First, Ethernet is the newer and more<br />

flexible successor to coax-based data<br />

infrastructure. Second, there is a finite<br />

number of design, installation and support<br />

parameters required to build and<br />

support reliable Ethernet networks.<br />

Finally, the limited number of parameters<br />

makes for a fairly straightforward<br />

means of rating infrastructure.<br />

In this example, there is no messaging<br />

system, and the network equipment is<br />

not monitored. The result is a 5 out of 7<br />

score for management services.<br />

This rating system was designed<br />

for owners and property management<br />

companies who need to rate property<br />

infrastructure as part of acquisition due<br />

diligence. BBP


Bring It On! What does the future hold? When it comes to the broadband future, the possibilities are endless. Already, Over-The-Top<br />

(OTT) video is making its way into homes and is predicted to dominate the bandwidth supply for the next few years. Additionally,<br />

entire 3D video walls are being developed for the future that could allow for a near virtual experience — from becoming part of a<br />

sporting event to exploring the depths of the ocean.<br />

For service providers, the future means one thing…the demand for high-performance, bandwidth-intensive applications will<br />

continue to grow. At ADTRAN we say, Bring It On. We recently added Packet Optical Transport System (P-OTS) functionality<br />

to our industry leading Total Access® 5000 broadband MSAP that can provide 400 Gbps over a single fiber pair.<br />

As a service provider, it’s time to ask yourself…..Can my network handle the future? What will your customers expect?<br />

What will you be able to deliver?<br />

ADTRAN is ready to help you Access Your World.<br />

Visit us at booth #306 and see why we say, Bring it On!<br />

CN927A110810TELCODIR Copyright © 2011 ADTRAN Inc. All rights reserved. ADTRAN<br />

and Total Access are registered trademarks of ADTRAN, Inc. Total Access 5000<br />

adtran.com


HOrIzON Bay at HyDE ParK<br />

taMPa, Fla.<br />

By Joe Bousquin ■ Contributing Editor, <strong>Broadband</strong> <strong>Properties</strong><br />

In this issue, for the first time, we showcase a fiber-connected senior living community – Horizon Bay at Hyde Park. Our<br />

thanks go to Verizon’s Eric Cevis and Cliff Lee and to Horizon Bay’s Michael Shaw for assistance in preparing this feature.<br />

Just because retirees enjoy a slower<br />

pace of life doesn’t mean they want<br />

slow Internet connections. When<br />

Horizon Bay Communities, a senior<br />

living management company that operates<br />

94 communities in 19 states, started<br />

building its flagship properties in its<br />

hometown of Tampa, Fla., it knew it<br />

needed more than the Mediterranean-<br />

inspired design, granite counters and<br />

abundant lifestyle and activities programs<br />

that its other communities are<br />

known for. Horizon Bay wanted to use<br />

cutting-edge technology to enable its residents<br />

to lead meaningful lives enhanced<br />

by strong connections to family and the<br />

world at large. In fact, that’s the cornerstone<br />

of the company’s philosophy: helping<br />

residents feel at home while staying<br />

fully connected and full of life.<br />

Now, residents at Horizon Bay Hyde<br />

Park, a 136-unit mid-rise that is the first<br />

new senior living community built in<br />

South Tampa in 20 years, can stay connected<br />

with a 150 Mbps Verizon FiOS<br />

connection deployed over a GPON<br />

backbone. Bulk video programming<br />

“One of the biggest success stories has been<br />

watching our residents take advantage of the<br />

common-area amenities, watching TV together<br />

or getting online at the Internet café.”<br />

is included in the rent, and residents<br />

can take both fiber-based Internet and<br />

phone services on an à la carte basis.<br />

In addition to the services delivered<br />

to individual apartments, Horizon Bay<br />

at Hyde Park also offers 14 commonarea<br />

televisions as well as complimentary<br />

Wi-Fi in common areas.<br />

The common-area connections not<br />

only provide organic gathering places<br />

16 | BROADBAND PROPERTIES | www.broadbandproperties.com | March/april 2011<br />

to bring residents together but also allow<br />

them to experience the Internet<br />

communally. “Really, one of the biggest<br />

success stories of rolling out the Verizon<br />

FiOS network here has been watching<br />

our residents take advantage of the<br />

common-area amenities, watching TV<br />

together or getting online at the Internet<br />

café,” says Michael Shaw, executive<br />

director of Horizon Bay at Hyde Park.<br />

About the Author<br />

Joe Bousquin is a contributing editor to <strong>Broadband</strong> <strong>Properties</strong> and a journalist with<br />

more than 15 years’ experience writing about finance, real estate and technology. You<br />

can reach him at joe@ameredit.com.


The Starbucks Internet Café offers wireless access for Horizon Bay residents.<br />

Who knows – the residents may even<br />

be connecting with their grandkids on<br />

Facebook.<br />

vItAl StAtS<br />

Property Description: Horizon Bay<br />

at Hyde Park is the first independent-living<br />

and assisted-living<br />

retirement community built<br />

in South Tampa in more than<br />

20 years. The 136-apartment<br />

community is the flagship of the<br />

growing Horizon Bay portfolio. The<br />

state-of-the-art community features<br />

beautifully appointed apartment<br />

homes in a Mediterranean-style,<br />

six-story building. Each apartment<br />

boasts nine-foot ceilings, a full<br />

kitchen, granite countertops, walkin<br />

closets, ceramic tile and carpet<br />

flooring.<br />

Horizon Bay at Hyde Park is located<br />

in the historic Hyde Park area<br />

of South Tampa and features an Internet<br />

café, a library, a fitness center,<br />

a game room, a pool and a bar and<br />

lounge area, complete with views of<br />

Tampa Bay.<br />

Residents enjoy dining, housekeeping,<br />

scheduled transportation,<br />

wellness programs, and a full schedule<br />

of programs and events. Horizon<br />

Bay at Hyde Park embraces an approach<br />

to life that creates meaning,<br />

purpose, inspiration and fulfillment.<br />

It strives to shatter stereotypes and<br />

honor residents for the unique lives<br />

they have led and the interesting stories<br />

they have to tell.<br />

Greenfield or retrofit? Greenfield<br />

Number of residential/commercial units<br />

136 residential units and 15 commercial,<br />

business and office suites.<br />

High-rise/mid-rise/garden style? Mid-rise,<br />

6 stories<br />

Time to deploy? The fiber deployment<br />

was started at the beginning of<br />

May 2010 (in coordination with<br />

the builder’s construction schedule)<br />

and completed at the end of Octo-<br />

ber 2010. During this six-month period,<br />

the Verizon construction team<br />

worked in concert with the developer<br />

to meet key milestone dates.<br />

Date services started being delivered?<br />

FiOS services were made available<br />

to the property during the first week<br />

of November 2010, when Horizon<br />

Bay’s first residents moved in.<br />

teCHnOlOGy<br />

The following responses were provided by<br />

Eric Cevis, vice president of Verizon Enhanced<br />

Communities.<br />

How does fiber get to the property? <strong>Fiber</strong><br />

is delivered to the ground-floor<br />

communications room via a buried<br />

conduit system that exits at the right<br />

of way. The distribution splice point<br />

and fiber distribution hub are located<br />

nearby.<br />

How is fiber distributed inside the building?<br />

From the communications<br />

room and splice point, six fiber optic<br />

terminal tails are pulled through a<br />

4-inch riser to deliver one terminal<br />

to each floor. Corning ClearCurve<br />

fiber drop cables are routed through<br />

Older AmericAns And the internet<br />

Seniors, though at first slow to start going online, are now accessing the<br />

Internet in droves. According to the Pew Internet and American Life Project’s<br />

2010 survey, nearly 60 percent of adults between 65 and 73 go online,<br />

and Internet use among 70- to 75-year-olds has nearly doubled since 2005.<br />

Shopping online is particularly important for seniors who no longer drive,<br />

as is staying in touch with families and friends.<br />

The same Pew survey found that older Americans are also adopting social<br />

networking faster than any other demographic. The group found that the<br />

use of social networking has quadrupled since 2008 among Internet users 74<br />

and older and said that sites such as Facebook may be especially appealing<br />

to seniors who want to reconnect with people from their past, find support<br />

communities for chronic diseases or connect with younger generations.<br />

Other studies suggest that seniors with robust Internet access may live<br />

healthier lives. The Phoenix Center, a public policy organization in Washington,<br />

D.C., found that seniors who regularly go online are 20 percent less<br />

likely to suffer from depression. The Semel Institute for Neuroscience and<br />

Human Behavior at the University of California, Los Angeles, found that using<br />

the Internet helps keep older brains sharp.<br />

Then, there’s the fact that home automation and other robust applications<br />

such as telemedicine are gaining traction. In sum, a fat Internet pipe<br />

is becoming as important for seniors as it is for 14-year-old gaming fanatics.<br />

March/april 2011 | www.broadbandproperties.com | BROADBAND PROPERTIES | 17


Optical network terminals are mounted in closets,<br />

where they are out of sight, and inside wiring is<br />

hidden away behind drywall.<br />

the interior walls into the closet<br />

of each unit, where the drop is left<br />

coiled in a flush-mounted slack storage<br />

box until service is requested.<br />

What is the FTTH technology? GPON<br />

What type of gear is being used? Motorola<br />

optical network terminals, set-top<br />

boxes and routers; fiber distribution<br />

equipment from ADC (now TE<br />

Connectivity) .<br />

How did you deal with wiring and plug<br />

access within the units? We worked<br />

with the developer to pre-position<br />

the inside wiring inside the wall<br />

studs prior to the drywall installation.<br />

We also worked with the developer<br />

to have electrical outlets placed<br />

adjacent to the ONT/5x5 slack storage<br />

fiber drop locations.<br />

Have you provided wireless signals within<br />

units? Verizon deployed one dedicated<br />

fiber optic drop to each unit. Each<br />

resident who orders FiOS Internet<br />

services is provided with a wireless<br />

router when the service is installed.<br />

ServICeS<br />

Does the building have triple-play services?<br />

Yes, triple-play services are available.<br />

Are there amenities beyond triple play or<br />

IP systems for managing the property?<br />

Horizon Bay at Hyde Park provides<br />

<strong>Fiber</strong> cable is routed from the main communications<br />

room to a fiber distribution terminal<br />

on each floor. The flexible tubing on the left<br />

contains fiber from the main comm room, and<br />

the drop cables for the individual units exit on<br />

the right.<br />

wireless access in the Starbucks and<br />

café area, a fully wired surroundsound<br />

theater room and 14 commonarea<br />

televisions.<br />

Who is the wireless service provider?<br />

Verizon<br />

Do residents have a choice of service providers?<br />

No. Verizon has an agreement<br />

with Horizon Bay to provide<br />

bulk TV services through the FiOS<br />

network. Residents also have the op-<br />

PrOPerty OF tHe MOntH HIGHlIGHtS:<br />

HOrIzOn BAy At HyDe PArk, tAMPA, FlA.<br />

• Luxury mid-rise community offering independent-living and<br />

assisted-living services to retirees.<br />

• First new retirement community built in South Tampa in 20 years.<br />

• Triple-play Verizon FiOS services including bulk video and à la<br />

carte telephone and Internet.<br />

• Internet speeds up to 150 Mbps/35 Mbps.<br />

• Equipment from Motorola, Corning and TE Connectivity.<br />

18 | BROADBAND PROPERTIES | www.broadbandproperties.com | March/april 2011<br />

tion of adding FiOS Digital Voice<br />

and FiOS Internet services.<br />

All Verizon FiOS connection<br />

speeds are available to the residents<br />

of Horizon Bay, from our 15 Mbps<br />

downstream and 5 Mpbs upstream<br />

all the way to our newest speed of 150<br />

down and 35 up. Speeds of 25/25,<br />

35/35 and 50/20 are also available.<br />

Who provides support? If residents have<br />

an issue or technical challenge, whom<br />

do they call? Verizon has a dedicated<br />

center for Verizon Enhanced Communities<br />

Value Program subscribers<br />

for ordering, billing and other<br />

account-related questions. For technical<br />

assistance, it offers a 24/7 <strong>Fiber</strong><br />

Solutions Center.<br />

The property is also supported<br />

by a representative from Verizon<br />

Enhanced Communities’ Customer<br />

Advocacy Group, local operations<br />

and marketing services.<br />

BuSIneSS<br />

Who owns the network? Michael Shaw,<br />

Horizon Bay: We own the wiring in<br />

the units and have a separate homerun<br />

wire back to the communications<br />

closet for our future use.<br />

Verizon owns the backbone and<br />

the home-run wiring to the demarcation<br />

point at the terminus of the<br />

interior wiring, located inside the<br />

communications closets.<br />

Was there a door fee? Michael Shaw: Yes,<br />

$150 per door.<br />

Are services automatically included in the<br />

rent?<br />

Eric Cevis, Verizon: Yes, FiOS TV Prime<br />

HD package is included as part of<br />

the amenities package, including an<br />

HD set-top box. Incremental services,<br />

including FiOS Internet and<br />

phone service, may be ordered directly<br />

by the residents.<br />

Who handles billing and collection?<br />

Eric Cevis: The contracted bulk video<br />

service is billed directly to the developer.<br />

Any package upgrades, additional<br />

services or products ordered<br />

directly by a resident are billed directly<br />

to the resident by Verizon.<br />

How are the services marketed, and by<br />

whom?


After leaving the fiber distribution terminal,<br />

the drop cables are routed into microducts<br />

that provide pathways to each unit. The microducts<br />

have room for additional fiber that<br />

may be needed in the future.<br />

Eric Cevis: Verizon Enhanced Communities<br />

provides brochures and other<br />

marketing materials about FiOS<br />

services on-site for residents, and a<br />

dedicated account manager works<br />

with the property management staff<br />

to organize and host on-site informational<br />

events to explain the services<br />

to residents.<br />

On-SIte exPerIenCe/<br />

leSSOnS leArneD<br />

What was the biggest challenge?<br />

Subsurface precast concrete ground vaults<br />

provide technicians with access to underground<br />

facilities, typically at splice or distribution<br />

terminal locations.<br />

Michael Shaw: As with any deal, negotiations<br />

were the biggest challenge. It<br />

was challenging, at points, to get all<br />

the right decision makers in the loop,<br />

and we had to negotiate a marketrate<br />

deal with Verizon so we could<br />

make sure both we and our residents<br />

realized value from the bulk services.<br />

At the same time, Verizon needed<br />

to manage its own interests. For instance,<br />

the escalation clauses in the<br />

contract came very close to killing<br />

the deal, but we were able to come to<br />

a mutually acceptable solution.<br />

What was the biggest success?<br />

Michael Shaw: Watching our residents<br />

use the common-area space with Verizon<br />

TVs or the Internet café while<br />

enjoying the cornerstone of the Horizon<br />

Bay experience: feeling at home,<br />

full of life and fully connected.<br />

What would you say to owners who want<br />

to deploy a similar network?<br />

Two computers are set up for resident use near the Internet Café.<br />

In each master bedroom closet, the micro-<br />

duct and fiber drop cable were pre-positioned<br />

inside the wall during construction. An ONT<br />

will be placed here when service is requested.<br />

An electrical outlet is positioned close by to<br />

power the ONT.<br />

Michael Shaw: Make sure you deal with<br />

the decision makers in any organization<br />

right from the start. When you<br />

get into the details of something like<br />

this, a myriad of decisions needs to<br />

be made at each step, so communicating<br />

with the individuals who<br />

have the authority to proceed at each<br />

juncture is critical.<br />

How did the vendor interact with residents<br />

during installation? Were there<br />

any guidelines or requests from the<br />

owner over limiting residents’ pain<br />

points during installation?<br />

Eric Cevis: Because the fiber deployment<br />

took place during the construction<br />

phase, before any residents had<br />

moved in, the developer was able to<br />

eliminate any concerns regarding<br />

disruption to its residents. All the<br />

necessary hardware and other wiring<br />

equipment is in place and was carefully<br />

designed to require minimal<br />

disruption to activate services as new<br />

residents move into their units. BBP<br />

March/april 2011 | www.broadbandproperties.com | BROADBAND PROPERTIES | 19


<strong>Fiber</strong> Deployment StrategieS<br />

allied <strong>Fiber</strong><br />

Nationwide Network Uses<br />

Bold New approach<br />

With dark fiber to major interconnection points and colocation facilities<br />

every 60 miles, the company aims to provide unprecedented network<br />

access for community networks, data center operators and others.<br />

By Joan Engebretson<br />

By some measures, the Allied <strong>Fiber</strong><br />

network is the most ambitious<br />

fiber network build to have been<br />

planned for at least a decade. It uses a<br />

network architecture not quite like anything<br />

that’s ever been built before. And<br />

if CEO Hunter Newby’s vision is correct,<br />

the network’s mere existence should<br />

use the Allied <strong>Fiber</strong> network to easily<br />

reach those traffic exchange points.<br />

“We come from a world of solving<br />

interconnection problems,” says Newby,<br />

who previously was chief strategy officer<br />

for Telx, a pioneer in the neutral colocation<br />

market. Newby expects the Allied<br />

<strong>Fiber</strong> network to attract a diverse mix of<br />

The Allied <strong>Fiber</strong> network is expected to attract<br />

rural network operators and community<br />

networks seeking economical connectivity to<br />

Internet points of presence.<br />

vastly improve the economics of bringing<br />

first-mile fiber networks to communities<br />

that, to date, have struggled to<br />

support broadband business models.<br />

Ultimately, Allied <strong>Fiber</strong>’s own business<br />

model isn’t as much about the<br />

network as it is about interconnecting<br />

other carriers. Allied <strong>Fiber</strong> will not be<br />

installing its own transport equipment.<br />

It will sell long-term dark fiber leases to<br />

other carriers, which will light their own<br />

networks.<br />

Importantly, the company’s plan<br />

includes a network presence in major<br />

carrier traffic exchange points in critical<br />

markets such as New York, Miami and<br />

Seattle, enabling network operators that<br />

companies that range from small rural<br />

network operators and community networks<br />

seeking economical connectivity<br />

to Internet points of presence to international<br />

carriers seeking a low-latency way<br />

to cross the North American continent.<br />

exPlOItInG Pent-uP DeMAnD<br />

The Allied <strong>Fiber</strong> plan seems to be resonating<br />

with the right people. “There’s a<br />

known need in the industry for new in-<br />

About the Author<br />

Joan Engebretson is a Chicago-based freelancer who has been writing about the telecom<br />

industry since 1993. She can be reached at joanengebretson@cs.com.<br />

20 | BROADBAND PROPERTIES | www.broadbandproperties.com | March/april 2011<br />

frastructure between markets, given the<br />

lack of available dark fiber,” comments<br />

Ben Edmonds, executive vice president<br />

of sales and marketing for <strong>Fiber</strong>Light, a<br />

company that has built fiber networks in<br />

21 markets in the southern half of the<br />

United States. “You always want to exploit<br />

where there’s a limited supply and<br />

pent-up demand, and that’s what Allied<br />

<strong>Fiber</strong> has tried to do.”<br />

The Allied <strong>Fiber</strong> network, Edmonds<br />

says, could be complementary to the<br />

metro networks <strong>Fiber</strong>Light already has<br />

deployed.<br />

“A multitenant fiber build has a lot<br />

of value to our customers,” comments<br />

Jim Poole, general manager of global<br />

networks and mobility for Equinix, the<br />

company whose carrier-neutral colocation<br />

facility in Ashburn, Va., will be a<br />

tether point for Phase 1 of the Allied<br />

<strong>Fiber</strong> network. The connection to the<br />

Equinix exchange will give Allied <strong>Fiber</strong><br />

easy access to an existing base of 190<br />

network providers already connected to<br />

the exchange.<br />

Phase 1 of the Allied <strong>Fiber</strong> network –<br />

interconnecting New York, Chicago,<br />

Ashburn and points in between – is<br />

nearing completion, and with four more


phases still to go, Newby notes, “We<br />

have a line out the door of banks that<br />

want to finance Phase 2.”<br />

neW yOrk tO CHICAGO,<br />

AnD POIntS In BetWeen<br />

What makes the Allied <strong>Fiber</strong> network<br />

unique is its use of two separate highcount<br />

dark fiber bundles that run in<br />

parallel. The company refers to one fiber<br />

batch, consisting of 432 fibers, as its<br />

long-haul network and the other, with<br />

216 fibers, as its short-haul network.<br />

There is also an empty fiber duct for future<br />

expansion.<br />

Local and regional network operators<br />

will be able to tap into the shorthaul<br />

network almost anywhere along<br />

the fiber route. It won’t be necessary to<br />

run a connection all the way to a major<br />

metro market.<br />

Every 60 miles, the optical signal<br />

needs regeneration, and at each of those<br />

points, carriers will be able to interconnect<br />

with other carriers via a crossconnect,<br />

to shift traffic from the shorthaul<br />

to the long-haul network and to<br />

colocate transport equipment, such as<br />

dense wavelength-division multiplexing<br />

equipment, switches and routers, but<br />

not servers.<br />

Although Allied <strong>Fiber</strong> expects to<br />

generate much of its initial revenue from<br />

long-term leases (known as indefeasible<br />

rights of use, or IRUs) on dark fiber,<br />

the company’s ultimate prize is the re-<br />

<strong>Fiber</strong> Deployment StrategieS<br />

curring revenue it expects to earn from<br />

colocation in the Allied <strong>Fiber</strong>–owned<br />

colo-regen facilities along the route.<br />

This approach is a far cry from the<br />

way most fiber networks are designed.<br />

Traditionally, carriers could tap into fiber<br />

networks only in major metropolitan<br />

areas. <strong>Fiber</strong> might pass through smaller<br />

markets like Toledo and Altoona, but<br />

often there was no way to connect to it.<br />

Newby argues that this goes a long<br />

way toward explaining why smaller<br />

markets with populations between<br />

25,000 and 300,000 tend not to have<br />

high-speed broadband availability. “Nobody<br />

is building fiber to the anything in<br />

those towns,” says Newby, noting that<br />

some entire towns have only a DS-3<br />

connection to the public Internet.<br />

“The choke point you can’t get around<br />

is backhaul,” Newby argues. “You can<br />

build in town but not to New York.”<br />

One nationwide network operator<br />

that has architected its network with on-<br />

and off-ramps primarily in major metro<br />

markets is XO Communications, and<br />

that company is beginning to see the<br />

Phase 1 of Allied <strong>Fiber</strong>’s network is nearing completion, and four more phases are planned.<br />

Local and regional network operators will be<br />

able to tap into the short-haul network almost<br />

anywhere along the fiber route.<br />

logic of Allied <strong>Fiber</strong>’s approach.<br />

Don MacNeil, vice president of operations<br />

for XO Communications, notes<br />

that for years the company’s network<br />

passed through Charlotte, N.C., without<br />

picking up or dropping off traffic<br />

there. “Two years ago, we decided to<br />

create a stop there, and we were able<br />

to open the market very easily,” recalls<br />

MacNeil.<br />

XO now is looking at the possibility<br />

of using the Allied <strong>Fiber</strong> network as<br />

a means of serving some of the smaller<br />

markets along the Allied <strong>Fiber</strong> route.<br />

MacNeil cites the hypothetical example<br />

of a local Pennsylvania ISP that might<br />

obtain more economical Internet connectivity<br />

by using new XO facilities<br />

running over dark fiber from Allied <strong>Fiber</strong>.<br />

“I can take him to my big Internet<br />

router in New York and give him better<br />

economics,” MacNeil explains.<br />

DIy AttItuDe neeDeD<br />

Newby is quick to offer up some compelling<br />

data about Phase 1 of the Allied<br />

<strong>Fiber</strong> network. More than 130 towns<br />

within a mile of the Phase 1 network<br />

have populations between 25,000 and<br />

500,000, he says.<br />

With Allied <strong>Fiber</strong> paving the way<br />

for economical backhaul connectivity,<br />

Newby says, it shouldn’t be difficult for<br />

those markets to support local broadband<br />

builds. But communities shouldn’t<br />

count on carriers to step in, he cautions.<br />

“Some towns are stuck in the mindset<br />

that someone will bring them broadband,”<br />

observes Newby. “But you have<br />

to have a do-it-yourself attitude.”<br />

Increasingly, towns and municipalities<br />

are realizing that, Newby says. He<br />

points to the Axcess Ontario network in<br />

upstate New York as an example of what<br />

towns and municipalities can achieve<br />

on their own. (Axcess Ontario is run by<br />

a public-benefit corporation set up by<br />

March/april 2011 | www.broadbandproperties.com | BROADBAND PROPERTIES | 21


<strong>Fiber</strong> Deployment StrategieS<br />

More than 3,000 counties have populations of<br />

around 100,000. All could benefit from fiber<br />

networks constructed like Allied <strong>Fiber</strong>’s.<br />

Ontario County, N.Y.) “They [the<br />

county] have 100,000 people. They built<br />

a fiber ring that they lease to eight providers.<br />

They did it on their own. They<br />

put up the money. They spent $5 million<br />

to build a 200-mile ring.”<br />

The 130-plus communities along<br />

Allied <strong>Fiber</strong>’s Phase 1 route are wellpositioned<br />

to do the same thing, Newby<br />

argues. But he doesn’t stop there.<br />

“There are 3,140 counties in the U.S.<br />

with an average population of 100,000,”<br />

notes Newby. “That means there are<br />

that many opportunities to build the<br />

same kind of network and link them<br />

all. And the Allied <strong>Fiber</strong> approach is the<br />

bridge to link them all.”<br />

Unfortunately, Allied <strong>Fiber</strong> isn’t planning<br />

to reach every one of those counties.<br />

Nevertheless, Newby says, “You have to<br />

do this for all of America. I’ll share my<br />

model with anybody and encourage<br />

them to do this where I’m not.”<br />

AllIeD FIBer’S GeneSIS<br />

Newby honed much of his thinking<br />

about open access and carrier-neutral<br />

interconnection seven or eight years ago<br />

at Telx, which started out as an international<br />

provider of wholesale minutes.<br />

Many carriers had to interconnect with<br />

one another within the carrier exchange<br />

at 60 Hudson Street in New York City,<br />

and as Newby recalls, “Everyone was in<br />

60 Hudson, but they weren’t in the same<br />

place.”<br />

Telx established a platform that enabled<br />

carriers to easily interconnect with<br />

one another at the physical layer, then<br />

extended that approach to other key carrier<br />

meeting points, eventually making<br />

carrier interconnection the focus of its<br />

business. Key concepts underlying the<br />

business are standard physical layer connection<br />

and open access – which also<br />

drive the thinking at Allied <strong>Fiber</strong>.<br />

The genesis of Allied <strong>Fiber</strong> came<br />

from two pivotal encounters that Newby<br />

experienced while working for Telx. The<br />

first encounter was in 2004, when Telx<br />

bought the 56 Marietta Street building<br />

in Atlanta, which serves as a traffic exchange<br />

point, with the goal of setting up<br />

a neutral interconnection platform there.<br />

The building’s previous owners “had no<br />

idea what they had bought,” Newby recalls.<br />

“They bought the building to convert<br />

it to loft condos, and they were upset<br />

they couldn’t throw the carriers out.”<br />

Newby went to Atlanta to explain<br />

Telx’s interconnection philosophy to<br />

the carriers that were connected at the<br />

facility. One of his meetings was with a<br />

potential client, Norfolk Southern Corporation.<br />

The company, a railroad, had<br />

rights of way behind the building and<br />

had already installed clear innerduct<br />

spanning thousands of miles in the eastern<br />

United States. The ductwork had<br />

been installed during the digital boom<br />

period, and the railroad had tried, without<br />

success, to get the previous owners<br />

of 56 Marietta Street to allow it into the<br />

building. Telx had no objection.<br />

As soon as the ducts were brought<br />

in, two network operators used them to<br />

install fiber. “It really strengthened the<br />

building,” Newby says.<br />

Newby also recognized that at some<br />

future point, the Norfolk Southern ductwork<br />

could be a valuable platform for a<br />

new fiber network build. He was confident<br />

he would know when the time was<br />

right.<br />

The period between 2004 and 2007<br />

was one of consolidation in the longhaul<br />

market, with lots of fiber network<br />

bargains to be found. By 2007, Newby<br />

realized that conditions had changed<br />

when Telx got an inquiry from a major<br />

international carrier asking for assistance<br />

in finding dark fiber to connect<br />

subsea landing points. “Either the fiber<br />

didn’t exist, or the carriers wouldn’t sell<br />

it,” Newby says.<br />

22 | BROADBAND PROPERTIES | www.broadbandproperties.com | March/april 2011<br />

Also around this time, Telx was sold<br />

to a new investment group, and Telx<br />

CEO Rory Cutaia left to join private<br />

equity firm Corinthian Capital, urging<br />

Newby to look at deals with him.<br />

Newby told him, “Instead of looking for<br />

deals, I have a deal.”<br />

The upshot was that Newby cut a deal<br />

with the railroad to use its ductwork and<br />

rights of way nationwide and was able to<br />

obtain construction completion financing<br />

from principals of Corinthian and<br />

from other individuals who had been<br />

involved with Telx in its early days. In<br />

addition, Newby secured a commitment<br />

for senior debt from Falcon Investment<br />

Advisors and ABRY Partners.<br />

PHASInG In tHe netWOrk<br />

As of mid-March, Allied <strong>Fiber</strong> had 10<br />

carriers signed up to use Phase 1 dark<br />

fiber, with dozens more contracts still<br />

being finalized. Signing the deals were<br />

traditional interexchange carriers, competitive<br />

carriers and cable multiple systems<br />

operators, says Newby, who also<br />

expects to see companies using Allied<br />

<strong>Fiber</strong>’s dark fiber for mobile backhaul.<br />

The company already has customers<br />

lined up for Phase 2, which will extend<br />

the network to Miami, and for Phase 3,<br />

which will take it to Seattle, Newby says.<br />

The final two phases will extend the network<br />

from Seattle to southern California<br />

and then from southern California back<br />

to Miami. Phases 2 through 5 will be a<br />

bit more challenging than Phase 1 from<br />

a construction point of view, however,<br />

because ductwork has not been installed<br />

along those routes.<br />

DAtA Center OPPOrtunItIeS<br />

Ductwork and rights of way aren’t the<br />

only benefits that Allied <strong>Fiber</strong> gets from<br />

working with the railroad. There’s something<br />

else, too – and it relates to the<br />

railroad’s heritage of serving the heavy<br />

industrial and manufacturing locations<br />

that flourished during a different era.<br />

The network runs through areas that<br />

have great access to major sources of<br />

power at some of the best prices available<br />

anywhere – as low as 3 cents per<br />

kilowatt hour, according to Newby.<br />

That access to power captured the attention<br />

of Pod Global, a company that


is planning to install containerized data<br />

center parks at several locations along the<br />

Allied <strong>Fiber</strong> route, where it has not only<br />

found great pricing on power but also<br />

plenty of capacity. “Every location will<br />

support 100 megawatts, and we’ll have<br />

100 containers or more at each location,”<br />

says Pod Global CEO Lee Hansen. The<br />

container shell, he says, is the same type<br />

of ISO9001 shipping container used on<br />

railroad cars and tractor trailers.<br />

Pod Global has not yet revealed the<br />

specific markets where its containerized<br />

data centers will be located, but Hansen<br />

said an initial location is likely to be in<br />

Indiana.<br />

The company is seeing strong interest<br />

from major users of data centers that<br />

are running out of either space or power<br />

at existing facilities. The excellent connectivity<br />

via the Allied <strong>Fiber</strong> network to<br />

major traffic exchange points makes a<br />

containerized approach viable and economical<br />

in some of the markets along<br />

the route, Hansen says. He believes most<br />

customers will manage their equipment<br />

remotely, drawing on local Pod Global<br />

staff when needed.<br />

Because power accounts for such a<br />

large part of the cost of data center service,<br />

data center operators tend to charge<br />

clients for monthly service, including<br />

floor or rack space, based on peak power<br />

consumption, explains Hansen. Pod<br />

Global expects to charge about $150 per<br />

kilowatt per month, which is a far cry<br />

from the $700 per kilowatt per month<br />

commanded by some major data center<br />

operators.<br />

“When we tell people $150 a kilowatt<br />

and you can do your own dark fiber,<br />

almost everyone’s eyes widen,” says<br />

Hansen.<br />

Hansen expects to find local business<br />

clients for his centers as well. His<br />

enthusiasm for the potential long-term<br />

economic impact of the Allied <strong>Fiber</strong><br />

network matches Newby’s – as long as<br />

data centers are part of the equation.<br />

“<strong>Fiber</strong> is of epic importance, but if there<br />

is no data center space, there’s nothing,”<br />

comments Hansen.<br />

Many small communities have<br />

been “swept under the rug” because of<br />

technology changes, he says. But with<br />

high-speed connectivity and data cen-<br />

<strong>Fiber</strong> Deployment StrategieS<br />

Allied <strong>Fiber</strong>’s mix of long-haul and short-haul fiber lets carriers tap into the network every 60 miles.<br />

ters more widely available, he predicts,<br />

“there will be an uptake of utilization<br />

from localized regions, which will play<br />

a role in the economic development of<br />

the regions.”<br />

Hansen even goes as far as predicting<br />

“an increase in property values and<br />

an influx of population” to smaller markets<br />

reached by Allied <strong>Fiber</strong> or similar<br />

networks. Many people, he says, don’t<br />

want to live in metro regions, but they<br />

are forced to do so today.<br />

InveStOrS Are AttrACteD<br />

Not everyone is sold on the idea of using<br />

data centers so remote from traditional<br />

interconnection points. In certain circumstances,<br />

they say, latency could be<br />

an issue.<br />

For example, MacNeil doesn’t expect<br />

XO to be a heavy user of data centers<br />

along the Allied <strong>Fiber</strong> route. He<br />

says that although XO might put some<br />

equipment in those centers to serve tenants<br />

in the centers, it will continue to<br />

rely primarily on data centers in major<br />

metro markets.<br />

Nevertheless, even skeptics may have<br />

to admit that a containerized data center<br />

approach could be well-suited to markets<br />

along the Allied <strong>Fiber</strong> route because<br />

of the difficulty of predicting demand in<br />

some of these markets.<br />

“The chances of accurately predicting<br />

your IT requirements are very low<br />

and, considering the costs of data center<br />

construction, the risk is very high,”<br />

comments Waite Ave, managing partner<br />

for Universal Networking Services, a<br />

company that sells and installs containerized<br />

data centers and has had inquiries<br />

from financial firms that are considering<br />

establishing centers along the Allied <strong>Fiber</strong><br />

route. “If a customer needs to grow,<br />

we simply deploy another modular container,”<br />

says Ave, adding that containerized<br />

data centers are well-suited for disaster<br />

recovery use.<br />

According to Newby, neither demand<br />

uncertainty nor other concerns<br />

have deterred some traditional data<br />

center operators from making plans to<br />

locate along the Allied <strong>Fiber</strong> route. “I<br />

know of at least three data center projects<br />

on the Phase 1 route,” comments<br />

Newby. One of them, which he says is<br />

“the biggest data center I’ve ever seen,” is<br />

“on the east coast, directly on the route.”<br />

Clearly, Allied <strong>Fiber</strong> is attracting<br />

significant investment and interest at a<br />

time when any type of infrastructure<br />

spending seems to be scrutinized more<br />

closely than ever. Newby says he has also<br />

received inquiries from governments of<br />

other countries asking him to help them<br />

adopt a similar approach as a means of<br />

driving broadband deployment in their<br />

countries.<br />

Some of those who buy into the Allied<br />

<strong>Fiber</strong> vision, including Hansen, are<br />

just as evangelical as Newby is about<br />

it. “Hunter [Newby] will change the<br />

face of the United States and the global<br />

economy because we’ll be able to jump<br />

back in with both feet – all of us, not<br />

just some of us,” says Hansen. BBP<br />

March/april 2011 | www.broadbandproperties.com | BROADBAND PROPERTIES | 23


Whether it’s a heart-wrenching email from a Moroccan<br />

prince or signs at intersections promising thousands per<br />

month for selling items on eBay, get rich quick schemes<br />

usually send up red flags for most of us. We have been<br />

taught since an early age that if it seems too good to be<br />

true, it probably is. Ninety-nine percent of the time this is<br />

a helpful instinct that keeps us from losing our identities,<br />

savings and time from predators who seek to prey on the<br />

naive. However, what about the one percent of time that it<br />

could keep us from missing a viable opportunity to generate<br />

legitimate additional income? By attempting to avoid scams<br />

and wasted time, are we, as owners, occasionally missing out<br />

on ways to enhance our bottom line?<br />

One area where many owners miss out on potential<br />

opportunities is internet and television service. Just as soda<br />

companies pay arenas a fee to sell drinks and advertise<br />

to its patrons, so should telecommunications companies pay<br />

for the same access to sell and advertise to your residents.<br />

You are providing a huge set of potential customers, so you<br />

should be proportionally compensated for your part in their<br />

sales process.<br />

However, not all telecommunications companies and/or<br />

arrangements are created equally. Here are a few important<br />

steps to go through prior to making any binding decisions or<br />

signing any contracts.


Payment Structures<br />

The two most common types of ancillary income are door<br />

fees and revenue sharing agreements. While it can be<br />

tempting to sign the first good deal that comes along, take<br />

the time to negotiate and look at every provider in your<br />

area. While one company may initially offer a relatively<br />

low revenue share, they may be willing to go higher if they<br />

feel as though they may lose your business to a competitor.<br />

However, don’t settle for the first big figure that you hear.<br />

Revenue shares are based on the percentage of occupied<br />

units as well as the number of occupants who choose to<br />

subscribe to the service. While a good provider will<br />

attract new subscribers, it won’t make a drastic change. For<br />

example, if only 40 percent of your residents have Internet<br />

service, and the model you’re looking at is dependent<br />

on an 80 percent subscription rate, you’ll probably have<br />

to readjust your expectations. A great provider may<br />

moderately increase subscription rates, but don’t expect<br />

them to double.<br />

A factor that does profoundly affect subscription rates is the<br />

number of providers on the property. As Carl E. Kandutsch,<br />

a former FCC lawyer, recently explained in <strong>Broadband</strong><br />

<strong>Properties</strong> Magazine, “Say for instance, in exchange for<br />

the grant of exclusive marketing rights and/or the exclusive<br />

use of inside wiring, the cable company pays the owner a<br />

door fee of $150 per unit, as well as a share of its monthly<br />

revenue, in amounts based on those typically found in cable<br />

right-of-entry agreements. The up-front door fee payment<br />

of $52,500, amortized at 6 percent, amounts to about $767<br />

per month, or $9,200 per year, over the seven-year term.<br />

This looks pretty good until we consider how much potential<br />

rent is lost because prospective tenants are stuck with no<br />

choice among service providers. Remember our assumption<br />

that the average monthly rental income from one resident is<br />

$800, or $9,600 yearly.”<br />

Only allowing one provider usually increases revenue for<br />

the short term, it may cause people to leave your community<br />

at the end of their lease. It usually doesn’t take the loss<br />

of more than a couple of units to quickly outweigh the<br />

additional revenue.<br />

There are ways around this problem. Some companies act<br />

as service provider managers and can negotiate revenue<br />

sharing options with multiple service providers. They work<br />

with them to get the best deal for you, and you only have to<br />

work with one company, eliminating a lot of frustration and<br />

confusion. By working with these kinds of companies, you can<br />

have the best of both worlds of maximizing revenue and<br />

offering choice.<br />

Choice isn’t the only factor in keeping residents happy.<br />

Quality of service and support are key to ensuring residents<br />

don’t feel trapped by their providers. The best way to check<br />

on this is to talk to other owners about their experiences<br />

with customer support. If your doubts linger, ask for the<br />

customer service line, call, and see how fast and courteous<br />

the response is. If you wouldn’t want to talk to the person<br />

on the other end of the line, don’t ask your residents to do<br />

the same.<br />

Ultimately, the key to finding the right services that enhance<br />

your bottom line and the happiness of your residents is due<br />

diligence. Take the time to find out what your residents like,<br />

what they want in their services, listen and find a provider<br />

who can deliver. There are companies who offer both quality<br />

service and competitive ancillary income options, if you take<br />

the time to do your research.<br />

w w w . c n x n t e c h . c o m | 9 1 9 . 5 3 5 . 7 3 2 9<br />

c n x n t e c h | C o n n e x i o n T e c h n o l o g i e s | C o n n e x i o n T e c h n o l o g i e s


hot proDuctS<br />

<strong>Broadband</strong> <strong>Properties</strong><br />

10th Annual list<br />

Of leading <strong>Broadband</strong><br />

technologies and services<br />

COMPAny<br />

The latest offerings from top broadband hardware and<br />

software suppliers, distributors and service providers.<br />

MDu/PCO<br />

InDuStry<br />

SeGMentS<br />

telCOS<br />

CABle tv<br />

26 | BROADBAND PROPERTIES | www.broadbandproperties.com | March/april 2011<br />

HOSPItAlIty<br />

MunICIPAlItIeS<br />

ACtIve eleCtrOnICS - WIrelIne<br />

ACtIve eleCtrOnICS - WIreleSS<br />

vIDeO HeADenDS AnD<br />

relAteD equIPMent<br />

PASSIveS - OutSIDe PlAnt<br />

3M 3 3 3 3 3 3 3 3<br />

ADTRAN 3 3 3 3 3 3 3 3<br />

PASSIveS - InSIDe PlAnt<br />

PrODuCtS<br />

AnD ServICeS<br />

Advanced Media Technologies 3 3 3 3 3 3 3 3 3 3 3<br />

CuStOMer-PreMISeS equIPMent<br />

StruCtureD WIrInG<br />

teSt equIPMent<br />

Internet AnD vIDeO ServICeS /<br />

PrOGrAMMInG<br />

OtHer MAnAGeD ServICeS<br />

PlAnnInG, DeSIGn Or<br />

COnStruCtIOn<br />

trAInInG<br />

AFL 3 3 3 3 3 3 3 3 3 3 3 3 3<br />

AT&T Connected Communities 3 3<br />

ATX Networks 3 3 3 3 3 3 3 3 3 3 3<br />

Blonder Tongue Laboratories 3 3 3 3 3 3<br />

Calix 3 3 3 3 3 3 3<br />

Channell Corp 3 3 3 3 3<br />

Charles Industries 3 3 3 3 3 3<br />

Clearfield Inc. 3 3 3 3 3 3<br />

Comcast 3 3<br />

Connexion Technologies 3 3 3<br />

Corning Cable Systems 3 3 3 3 3 3 3 3 3<br />

BACk-OFFICe SOFtWAre<br />

CuStOMer-FACInG APPlICAtIOnS


MDu/PCO<br />

3M Communication Markets Division<br />

6801 Riverplace Blvd.<br />

Austin, TX 78726<br />

P: 512-984-4641<br />

Contact: Linnea Wilkes<br />

E: lmwilkes@mmm.com<br />

W: www.3m.com/onepass<br />

Segments of Industry Served: MDU/PCO; Telcos;<br />

Hospitality; Municipalities<br />

Products and Services: Passives – Outside Plant;<br />

Passives – Inside Plant; Customer-Premises Equipment;<br />

Structured Wiring<br />

hot proDuctS<br />

InDuStry<br />

SeGMentS<br />

telCOS<br />

CABle tv<br />

HOSPItAlIty<br />

MunICIPAlItIeS<br />

ACtIve eleCtrOnICS - WIrelIne<br />

ACtIve eleCtrOnICS - WIreleSS<br />

vIDeO HeADenDS AnD<br />

relAteD equIPMent<br />

PASSIveS - OutSIDe PlAnt<br />

PASSIveS - InSIDe PlAnt<br />

PrODuCtS<br />

AnD ServICeS<br />

In 2009, 3M unveiled the<br />

revolutionary 3M One<br />

Pass <strong>Fiber</strong> Pathway to enable<br />

fast, low-cost installation<br />

of FTTP networks<br />

in brownfield multipledwelling<br />

units. Now, 3M<br />

introduces the newest addition<br />

to its One Pass family<br />

of products, the 3M One Pass Mini <strong>Fiber</strong> Pathway. The One<br />

Pass Mini is a low-profile, single-fiber cable pathway solution<br />

designed to take fiber beyond the hallway, deep into a living unit<br />

discreetly and with minimal subscriber disruption. And like its<br />

March/april 2011 | www.broadbandproperties.com | BROADBAND PROPERTIES | 27<br />

CuStOMer-PreMISeS equIPMent<br />

StruCtureD WIrInG<br />

teSt equIPMent<br />

Internet AnD vIDeO ServICeS /<br />

PrOGrAMMInG<br />

OtHer MAnAGeD ServICeS<br />

PlAnnInG, DeSIGn Or<br />

COnStruCtIOn<br />

trAInInG<br />

COMPAny<br />

COS Systems 3 3 3 3 3 3 3<br />

DISH Network 3 3 3 3 3 3<br />

Display Systems International<br />

G4S Technology<br />

3 3 3 3 3 3<br />

(formerly Adesta) 3 3 3<br />

Mac Gray 3 3<br />

Multicom Inc. 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3<br />

OFS 3 3 3 3 3 3 3 3<br />

Radiant Communications 3 3 3 3 3<br />

Spot On Networks 3 3 3 3<br />

Sumitomo Electric Lightwave 3 3 3 3 3 3 3 3 3 3<br />

Suttle 3 3 3 3 3 3<br />

Televes USA LLC 3 3 3 3 3 3 3 3 3<br />

Time Warner Cable<br />

Verizon Enhanced<br />

3 3<br />

Communities 3 3 3<br />

ViewTEQ 3 3 3 3 3 3 3 3<br />

Walker and Associates 3 3 3 3 3 3 3 3 3<br />

BACk-OFFICe SOFtWAre<br />

CuStOMer-FACInG APPlICAtIOnS


older brother, the One Pass Mini <strong>Fiber</strong> Pathway utilizes exclusive<br />

3M adhesive technology, which ensures reliable installation<br />

on a wide variety of surfaces, even painted or sealed concrete.<br />

Together, the 3M One Pass <strong>Fiber</strong> Pathway and the new 3M<br />

One Pass Mini <strong>Fiber</strong> Pathway, both terminated with the highperformance<br />

3M No Polish Connector, provide a complete,<br />

cost-effective and aesthetically pleasing fiber solution for MDUs,<br />

both inside and outside the living unit ... the Total Package.<br />

ADtrAn<br />

901 Explorer Blvd.<br />

Huntsville, AL 35806<br />

P: 256-963-8000<br />

F: 256-963-7916<br />

Contact: Kim Brashears<br />

E: kim.brashears@adtran.com<br />

W: www.adtran.com<br />

Segments of Industry Served: MDU/PCO; Telcos; Cable<br />

TV; Hospitality; Municipalities<br />

Products and Services: Active Electronics – Wireline; Active<br />

Electronics – Wireless; Customer-Premises Equipment<br />

The ADTRAN Total<br />

Access 5000 MSAP is a<br />

carrier-class multiservice<br />

access and aggregation<br />

platform that bridges the<br />

gap between existing and<br />

next-generation networks.<br />

With a pure Ethernet core,<br />

the Total Access 5000<br />

supports both legacy and<br />

emerging service interfaces over both copper and fiber, easily<br />

scaling to support even the most bandwidth-intensive applications.<br />

The innovative product was recently cited for adding<br />

Packet Optical Transport Switching (P-OTS) to its list of applications<br />

for access networks.<br />

Total Access 5000 is built around a pure Ethernet core. All<br />

incoming services, regardless of protocol, are handled as Ethernet,<br />

creating a native service delivery model for advanced services<br />

without stranding existing legacy services. This allows the Total<br />

Access 5000 to economically address multiple network applications<br />

with traditional network interfaces. It also addresses advanced<br />

capabilities such as Ethernet Ring Protection Switching,<br />

VDSL2, 10 GigE, GPON, active Ethernet, WDM and OTN.<br />

Advanced Media technologies<br />

3150 SW 15 th Street<br />

Deerfield Beach, FL 33442<br />

P: 954-427-5711<br />

F: 954-427-9688<br />

Contact: Rob Narzisi<br />

E: rnarzisi@amt.com<br />

W: www.amt.com<br />

hot proDuctS<br />

28 | BROADBAND PROPERTIES | www.broadbandproperties.com | March/april 2011<br />

Segments of Industry Served: MDU/PCO; Telcos;<br />

Cable TV; Hospitality; Municipalities<br />

Products and Services: Active Electronics – Wireline;<br />

Video Headends and Related Equipment; Passives –<br />

Outside Plant; Passives – Inside Plant; Customer-Premises<br />

Equipment; Test Equipment<br />

Economically disruptive<br />

LAN solution that will<br />

revolutionize the way voice,<br />

video and data are distributed<br />

throughout enterprises.<br />

POL replaces existing LAN<br />

connections with a single<br />

high-capacity fiber optical<br />

cable designed to connect end users directly to the data center.<br />

Derived from carrier-grade passive optical networking (PON)<br />

technology, POL allows end users to realize substantial capex<br />

and opex savings while taking significant steps toward becoming<br />

more green.<br />

AFl<br />

PO Box 3127<br />

Spartanburg, SC 29304<br />

P: 864-433-0333<br />

F: 864-433-5363<br />

Contact: Tony Nieves<br />

E: tony.nieves@aflglobalc.om<br />

W: www.aflglobal.com<br />

Segments of Industry Served: MDU/PCO; Telcos; Cable<br />

TV; Hospitality; Municipalities<br />

Products and Services: Video Headends and Related<br />

Equipment; Passives – Outside Plant; Passives –<br />

Inside Plant; Customer-Premises Equipment; Structured<br />

Wiring; Test Equipment; Planning, Design or<br />

Construction; Training<br />

IDEAA – Integrated Distribution<br />

Enabling Access<br />

Apparatus: The IDEAA<br />

product family revolutionizes<br />

the way passive optical<br />

splitter modules are deployed<br />

in the outside-plant<br />

network. An alternative to<br />

traditional splitter-modulein-cabinet<br />

designs, IDEAA<br />

allows service providers to<br />

provision PON splitter module<br />

needs with less upfront cost by using a common footprint<br />

module. Additionally, the IDEAA product family allows quick<br />

and easy termination of distribution fibers using the latest AFL<br />

FuseConnect technology.<br />

Because it uses a small modular design, the IDEAA product<br />

can be installed in many different applications. This allows


service providers to manage a single type of splitter module to<br />

service and upgrade all their PON applications.<br />

Applications include direct wall mount, interior wall<br />

mount enclosure or pedestal, exterior wall mount enclosure,<br />

exterior distribution enclosure or pedestal, exterior distribution<br />

cabinet, sealed splice closure and rack mount bracket.<br />

At&t Connected Communities<br />

2180 Lake Blvd.<br />

Atlanta, GA 30319<br />

P: 404-829-8895<br />

F: 404-829-8818<br />

Contact: Thuy Woodall<br />

E: tw5598@att.com<br />

W: www.att.com/communities<br />

Segments of Industry Served: MDU/PCO<br />

Products and Services: Internet and Video Services/<br />

Programming<br />

AT&T Connected Communities is a specialized division of<br />

AT&T dedicated to creating alliances with apartment ownership<br />

and management groups, single-family builders, developers<br />

and real estate investment trusts within our 22-state service<br />

area. As a leading global provider of high-speed Internet, advanced<br />

TV, home phone service and wireless communication<br />

services, our mission is to develop reliable technology solutions<br />

that bring AT&T’s complete offering of the latest communications<br />

and entertainment services to your community and residents.<br />

Aligning with AT&T Connected Communities, which<br />

is backed by a single point of contact, ensures a rewarding marketing<br />

partnership and seamless technology deployment while<br />

increasing the value of your community. To learn more, visit<br />

www.att.com/communities.<br />

Atx networks<br />

1-501 Clements Rd. W.<br />

C<br />

Ajax, ON, L1S7H4 Canada<br />

P: 800-565-7488<br />

M<br />

F: 866-427-1964<br />

Y<br />

Contact: Tim Buck<br />

CM<br />

E: tbuck@atxnetworks.com<br />

MY<br />

W: www.atxnetworks.com<br />

CY<br />

Segments of Industry Served: MDU/PCO; Telcos; Cable CMY<br />

TV; Hospitality; Municipalities<br />

K<br />

Products and Services: Active Electronics – Wireline; Video<br />

Headends and Related Equipment; Passives – Outside<br />

Plant; Passives – Inside Plant; Customer-Premises Equipment;<br />

Test Equipment<br />

The DVIS line from<br />

ATX Networks is<br />

designed for MDU<br />

digital insertion or<br />

for applications that<br />

require content back-<br />

hot proDuctS<br />

haul from a remote location. The DVIS can MPEG-2 encode<br />

up to 10 programs, demodulate an incoming QAM, create a<br />

new multiplex of encoded content and demodulated content<br />

and then transmit it via QAM or IP (RJ45/SFP). The DVISm<br />

(Mini) is scalable from 1 to 4 programs. These MDU hardened<br />

designs include integrated RF management and an industryleading<br />

digital channel deletion filter. They can be configured<br />

for any digital insertion method, including add, add/drop or<br />

drop on an existing QAM, QAM deletion and reinsertion or<br />

QAM insertion at the band edge. An IP-based management<br />

port with onboard Web server and SNMP support allows users<br />

to configure and monitor the DVIS/DVISm remotely. The<br />

gldsad-qrtrpageFINAL.pdf 6/18/09 10:39:16 AM<br />

DVISn (Nano) is scalable from 1 to 2 programs and is geared<br />

WWW.GLDS.COM 800-882-7950 SALES@GLDS.COM<br />

March/april 2011 | www.broadbandproperties.com | BROADBAND PROPERTIES | 29


toward applications requiring a basic and cost-effective QAM<br />

insertion into an empty EIA channel or at the band edge.<br />

http://www.atxnetworks.com/digital-video-insertion<br />

ATX Networks has expanded its UCrypt product offering,<br />

which is designed to support operators with the delivery<br />

of content into hospitality and bulk MDU accounts, so that<br />

virtually any deployment architecture and distribution application<br />

can be addressed. The UCrypt QAM-to-QAM product<br />

was designed to transition content from HFC plant and retransmit<br />

into an MDU/hotel in Pro:Idiom/clear QAM format.<br />

Expanding upon the success of that product, ATX has now included<br />

both IP and analog output capabilities in the UCrypt so<br />

that operators can service IPTV-based hospitality accounts and<br />

address accounts where supplying every dwelling with a set-top<br />

box is not practical. ATX has also developed IP to Pro:Idiom<br />

QAM, IP to Pro:Idiom IP, QAM to IP and QAM to analog as<br />

a part of the UCrypt product suite to provide operators with<br />

the ability to deploy Pro:Idiom encrypted content in a more<br />

centralized manner. http://www.atxnetworks.com/bulk-qamto-qam-gige-analog-mdu<br />

Blonder tongue laboratories Inc.<br />

One Jake Brown Road<br />

Old Bridge, NJ 08857<br />

P: 800-523-6049<br />

F: 732-679-1886<br />

Contact: Lauren Yesler<br />

E: lyesler@blondertongue.com<br />

W: www.blondertongue.com<br />

Segments of Industry Served: MDU/PCO; Cable TV;<br />

Hospitality; Municipalities<br />

Products and Services: Video Headends and Related<br />

Equipment; Training<br />

MUX-12A-IP (Multiplexer; 12:1 ASI-to-IP) is designed to<br />

utilize a common hardware platform for two similar but separate<br />

applications. The IPTV mode is ideal for cherry-picking<br />

applications and to allow operators to create custom-made<br />

channel lineups by grooming SD and HD programs on an asneeded<br />

basis. The RF QAM mode is suitable for distribution<br />

over coaxial networks,<br />

and each<br />

input ASI stream<br />

can contain up to<br />

three programs –<br />

typical for digital<br />

off-air broadcasting<br />

applications.<br />

The multiplexer<br />

is Emergency Alert System (EAS) compliant in both modes –<br />

the operator can assign ASI port #12 as an EAS input which,<br />

when activated, will override the content of all other ASI inputs.<br />

Comprehensive remote monitoring and control is accomplished<br />

via a GUI-based interface using any standard Web<br />

browser. Please come to Booth #206 at the 2011 BBP Summit<br />

hot proDuctS<br />

30 | BROADBAND PROPERTIES | www.broadbandproperties.com | March/april 2011<br />

or visit www.blondertongue.com for more information on our<br />

Edge/IP Solutions.<br />

Calix<br />

1035 N. McDowell Blvd.<br />

Petaluma, CA 94954<br />

P: 707-766-3000<br />

F: 707-766-3100<br />

Contact: David Russell<br />

E: david.russell@calix.com<br />

W: www.calix.com<br />

Segments of Industry Served: MDU/PCO; Telcos;<br />

Cable TV; Hospitality; Municipalities<br />

Products and Services: Active Electronics – Wireline;<br />

Passives – Outside Plant<br />

The 716GE-I is the first<br />

indoor ONT in the<br />

industry that supports<br />

both GPON<br />

and active Ethernet in<br />

the same home unit. The<br />

716GE-I is designed to address a wider range of indoor settings.<br />

Its modern, consumer product–inspired design enables<br />

it to be located in public settings, such as desktops and visible<br />

wall locations, but its wider temperature specifications allow it<br />

to be used in garage and laundry-room settings. The 716GE-I<br />

offers two POTS and four GE ports and all the most valued<br />

features of Calix 700GE ONTs:<br />

• Support for both GPON and active Ethernet (AE) through<br />

the unique Calix auto-detect technology<br />

• Full symmetrical, line-rate GE<br />

• Every port separately provisioned<br />

• Support for multiple services (VLANs) over each GE port<br />

• Remote ONT activation (RONTA) via a voice response<br />

system<br />

• Voice services – both TDM and VoIP (SIP and H.248,<br />

MGCP in the near future)<br />

Channell Corp<br />

PO Box 2099<br />

Temecula, CA 92589<br />

P: 951-719-2600<br />

Contact: Jill Orr<br />

E: jorr@channell.com<br />

W: www.channell.com<br />

Segments of Industry Served: MDU/PCO; Telcos;<br />

Cable TV; Municipalities<br />

Products and Services: Passives – Outside Plant<br />

Channell is into FTTH fiber, pits and enclosures: Channell’s<br />

newest generation of FTTH fiber optic cable splicing, storage<br />

and management systems features field-upgradable splice tray<br />

enclosures and options. The superior strength of our Signature


Grade Level Boxes (SGLB) is combined<br />

with our Multiple Access Housing<br />

(MAH) pedestal for easy, 360-degree access<br />

to our splice tray enclosure products.<br />

The thermoplastic MAH pedestal provides<br />

protection from extreme<br />

elements, and its patented<br />

universal bracketry design just<br />

snaps in and out of the SGLB<br />

base for quick access and<br />

hassle-free maintenance challenges.<br />

Charles Industries<br />

5600 Apollo Drive<br />

Rolling Meadows, IL 60008<br />

P: 847-806-6300<br />

F: 847-806-6231<br />

Contact: Brad Wackerlin<br />

E: bwackerl@charlesindustries.com<br />

W: www.charlesindustries.com<br />

Segments of Industry Served: MCU/PCO, Telcos;<br />

Cable TV; Municipalities<br />

Products and Services: Passives – Outside Plant;<br />

Passives – Inside Plant<br />

Charles CUBE RL Series Cabinets: Compact and compartmentalized,<br />

Charles CUBE RL Series remote cabinets are ideal<br />

for backhaul and other remote electronics equipment deployments<br />

at cell<br />

sites, MDUs,<br />

business parks<br />

and other multiuserlocations.<br />

Separate<br />

locking compartments<br />

for<br />

service provider equipment, customer equipment and powering<br />

are available to allow service providers the ability to restrict<br />

customer and technician access to individual compartments.<br />

RL Series cabinets are designed to support traditional 19”<br />

or 23” rackmount equipment and may be mounted on walls,<br />

H-frame channels or poles. They are made in the United States,<br />

certified to Telcordia GR-487 specifications and available with<br />

several options, including heat exchangers, copper and fiber<br />

cable management, solar shields and AC or DC powering.<br />

AC panels that include circuit breakers, surge suppression and<br />

GFCI receptacles are also available.<br />

Clearfield Inc.<br />

5480 Nathan Ln.<br />

Plymouth, MN 55442<br />

P: 763-476-6866<br />

F: 763-475-8457<br />

Contact: Lindsay Golz<br />

hot proDuctS<br />

E: lgolz@clearfield.com<br />

W: www.clearfieldconnection.com<br />

Segments of Industry Served:<br />

MDU/PCO; Telcos;<br />

Cable TV; Municipalities<br />

Products and Services:<br />

Passives – Outside Plant;<br />

Passives – Inside Plant<br />

Delivering small fiber counts to<br />

the access network just got a whole lot easier!<br />

The FieldSmart Small Count Delivery (SCD) Case from<br />

Clearfield delivers any type of fiber construction or optical<br />

component to any point in the access network. It is optimized<br />

for above- or below-grade deployment in Clearfield’s<br />

new CraftSmart Optical Protection (OP) pedestal or vault and<br />

combines the low-cost fiber management features of Clearview<br />

xPAK with an innovative sealed enclosure.<br />

Leading the industry in modularity, the FieldSmart SCD<br />

Case can also be deployed directly out of the box with aerial or<br />

pole mounting hardware.<br />

Comcast Cable<br />

1701 JFK Blvd.<br />

Philadelphia, PA 19103<br />

P: 800-COMCAST<br />

Contact: Bill Revell<br />

E: multifamily_team@cable.comcast.com<br />

W: www.comcast.com<br />

Segments of Industry Served: MDU/PCO<br />

Products and Services: Internet and Video Services/<br />

Programming<br />

Comcast Corporation is one of the nation’s leading providers<br />

of entertainment, information and communications products<br />

and services. We value our partnerships with multifamily communities<br />

as we help them deliver the best in entertainment to<br />

their residents. All Comcast services bring valuable benefits to<br />

each customer’s home, including XFINITY TV, XFINITY Internet<br />

and XFINITY Voice. We hold our products, service and<br />

people to the highest standards because our goal is to provide<br />

a superior customer experience. Serving residents in 36 states<br />

and the District of Columbia, Comcast will partner with you<br />

to meet all your residents’ communications needs.<br />

Connexion technologies<br />

111 Corning Road, Ste. 250<br />

Cary, NC 27518<br />

P: 919-535-7342<br />

F: 919-882-9338<br />

Contact: Susan Knowles, Media Relations Coordinator<br />

E: susan.knowles@cnxntech.com<br />

W: www.cnxntech.com<br />

Segments of Industry Served: MDU/PCO<br />

March/april 2011 | www.broadbandproperties.com | BROADBAND PROPERTIES | 31


Products and Services: Other Managed Services;<br />

Planning, Design or Construction<br />

Connexion Technologies customizes and manages advanced<br />

communications networks in residential properties nationwide.<br />

Its networks optimize the communication experience<br />

and value of properties for residents and owners.<br />

Connexion Technologies is not a service provider; rather,<br />

it selects and manages providers that offer entertainment and<br />

communication applications, including enhanced television,<br />

telephone and Internet services over Connexion’s providerneutral<br />

networks. The company is based in Cary, N.C. It was<br />

established in 2002 and serves properties nationwide. For more<br />

information, visit us at www.connexiontechnologies.net<br />

Corning Cable Systems<br />

800 17th Street NW<br />

Hickory, NC 28603<br />

P: 828-901-5000<br />

F: 828-901-5488<br />

Contact: Dave Kiel<br />

E: dave.kiel@corning.com<br />

W: www.corning.com/cablesystems<br />

Segments of Industry Served: MDU/PCO; Telcos;<br />

Cable TV; Municipalities<br />

Products and Services: Passives – Outside Plant;<br />

Passives – Inside Plant; Test Equipment; Planning,<br />

Design or Construction; Training<br />

Corning Cable Systems, a<br />

global innovator and<br />

industry leader in<br />

optical networking,<br />

offers a complete<br />

solution optimized<br />

for FTTx networks.<br />

Through its Evolant Solutions,<br />

Corning Cable Systems<br />

provides a range of innovative products, including optical cable,<br />

hardware and equipment products designed to make FTTx<br />

deployments faster, easier, more reliable and less costly. The<br />

Corning Connected Community Program assists homebuilders<br />

and community developers with implementing fiber optic<br />

infrastructures into their building plans, while the Corning Total<br />

Access Program provides highly qualified design, engineer,<br />

furnish and install companies with the tools necessary to ensure<br />

successful fiber-to-the-home and wireless deployments. FTTx<br />

consultants and network designers have access to a diverse range<br />

of tools and resources through the Corning FTTxpert Program.<br />

COS Systems<br />

16 Coddington Wharf #2<br />

Newport, RI 02840<br />

P: 617-274-8171<br />

Contact: Ronald Corriveau, VP Business Development<br />

hot proDuctS<br />

32 | BROADBAND PROPERTIES | www.broadbandproperties.com | March/april 2011<br />

E: ron.corriveau@cossystems.com<br />

W: www.cossystems.com<br />

Segments of Industry Served: MDU/PCO; Telcos;<br />

Cable TV; Hospitality; Municipalities<br />

Products and Services: Back-Office Software;<br />

Customer-Facing Applications<br />

COS is an operations,administration<br />

and management<br />

solution that<br />

offers secure, automated<br />

provisioning<br />

and monitoring for<br />

broadband networks.<br />

It provides<br />

a comprehensive solution for automating the operational and<br />

business processes critical to selling, provisioning and managing<br />

broadband networks.<br />

COS offers a secure, highly customizable self-service portal<br />

that lets customers select offerings such as triple play from multiple<br />

service providers. COS automatically provisions services<br />

offered to subscribers from the COS portal, sends customer<br />

and billing information to the relevant service provider and<br />

enables the services, all in a matter of minutes.<br />

By automating all the activities needed to provision and<br />

manage subscribers, COS improves customer satisfaction, lowers<br />

service deployment costs and accelerates revenues. For more<br />

information, visit us at www.cossystems.com<br />

DISH network<br />

9601 S. Meridian Blvd.<br />

Englewood, CO 80112<br />

P: 720-514-5811<br />

Contact: Troy Barclay<br />

E: troy.barclay@dishnetwork.com<br />

W: www.commercial.dishnetwork.com<br />

Segments of Industry Served: MDU/PCO; Telcos;<br />

Hospitality<br />

Products and Services: Video Headends and Related<br />

Equipment; Internet and Video Services/Programming;<br />

Planning, Design or Construction<br />

DISH Network offers best-in-class programming at a competitive<br />

rate for multitenant buildings, student housing, singlefamily<br />

neighborhoods, hospitals and assisted-living properties.<br />

Services range from bulk programming delivered to an entire<br />

complex to customized digital, video and Internet solutions.<br />

DISH is the smart choice for business, providing the best in<br />

high-definition, international, movie and sports programming<br />

plus local channels in every market. Our technology is available<br />

across all 50 states, Puerto Rico and the USVI.<br />

No matter what the infrastructure, DISH has a solution to<br />

maximize a property’s appeal and help sell units faster. Scalable<br />

solutions combined with technical innovation go beyond<br />

the specific requirements of property owners and management


companies to provide unique, value-added product to service<br />

any property’s needs. www.Commercial.Dishnetwork.com<br />

Display Systems International<br />

2214 Hanselman Ave.<br />

Saskatoon, SK S7L6A4<br />

P: 306-934-6884<br />

F: 306-934-6447<br />

Contact: Whitney Lemke<br />

E: whitney.lemke@displaysystemsintl.com<br />

W: www.displaysystemsintl.com<br />

Segments of Industry Served: MDU/PCO; Telcos;<br />

Cable TV; Hospitality; Municipalities<br />

Products and Services: Video Headends and Related<br />

Equipment<br />

Display Systems International’s<br />

Video Information<br />

Player (VIP) is<br />

a powerful, easy-to-use<br />

video display administration<br />

system. The<br />

machine’s intuitive, Webbased<br />

control system gives you the ability<br />

to control multiple units in remote locations using a single<br />

login. The VIP can handle almost any video file format, and<br />

the machine’s online interface ensures cross-platform compatibility.<br />

The VIP is capable of meeting your needs regardless of<br />

the scale of your operation, and is useful for everything from<br />

controlling a single electronic bulletin board to running a fullfledged<br />

community information channel.<br />

DSI has more than 25 years of experience in the broadcast<br />

industry and specializes in providing a diverse array of services<br />

that include scrolling channel guides, TV listings data and digital<br />

signage solutions. The company has recently added “Best<br />

Customer Service” to the long list of awards received and has<br />

recently expanded its operations, not only in space but staff<br />

as well.<br />

G4S technology (formerly Adesta)<br />

1200 Handmark Center, Ste. #1300<br />

Omaha, NE 68102<br />

P: 402-233-7700<br />

F: 402-233-7650<br />

Contact: Laura Kocher<br />

E: laura.kocher@usa.g4s.com<br />

W: www.g4stechnology.com<br />

Segments of Industry Served: MDU/PCO; Telcos<br />

Products and Services: Planning, Design or Construction<br />

G4S Technology (formerly Adesta) specializes in the design<br />

and implementation of modern communications networks and<br />

infrastructure for public and private customers. A trusted provider<br />

of facilities, equipment and personnel for a wide variety<br />

of communications infrastructure, we offer custom-tailored,<br />

hot proDuctS<br />

results-oriented services in SONET, IP/Ethernet, DWDM/<br />

CWDM, wireless, last-mile and broadband networks.<br />

Since 1988, G4S Technology has deployed more than 2 million<br />

fiber miles. We can help develop a greenfield network or<br />

integrate into an existing infrastructure. We work with both<br />

inside- and outside-plant facilities and provide all types of networks<br />

for voice, data and video applications. Our wide range<br />

of services includes design, engineering, cable and equipment<br />

procurement, aerial and underground installation, construction,<br />

system testing and turn-up, fusion splicing and documentation.<br />

G4S Technology is a founding member of the <strong>Fiber</strong>-to-the-<br />

Home Council and specializes in last-mile and broadband solutions<br />

for ILECs, CLECs, utilities, municipalities, economic<br />

development projects and rural broadband cooperatives.<br />

Mac-Gray<br />

404 Wyman St., Ste. 400<br />

Waltham, MA 02451<br />

P: 888-MAC-GRAY<br />

F: 781-290-4890<br />

Contact: Don Baumann<br />

E: customercare@macgray.com<br />

W: www.macgray.com<br />

Segments of Industry Served: MDU/PCO<br />

TEAM FENEX announces an addition to the family! The proven line of<br />

<strong>Fiber</strong> Optic Splicing Labs now has a new addition – a Baby Brother!<br />

The CUB, expands the quality FOSL family to four sizes of trailers.<br />

Maintaining the features and construction of its bigger brothers, the<br />

CUB provides greater maneuverability in an eco-friendly manner.<br />

Shorter turning radius, lighter overall weight, and shorter overall<br />

length are just a sample of the features achieved by this single axle<br />

design. The new TEAM FENEX 6’ X 8’ CUB is ready for work!<br />

For information call<br />

TEAM FENEX SALES @ 1-800-88FENEX<br />

March/april 2011 | www.broadbandproperties.com | BROADBAND PROPERTIES | 33


Products and Services: Other Managed Services<br />

Mac-Gray is the premier<br />

multifamily provider of<br />

energy-efficient commercial<br />

laundry equipment,<br />

award-winning local support<br />

and cutting-edge<br />

services and technologies.<br />

Our specialized programs<br />

and superior equipment<br />

options are proven to increase<br />

revenues and resident<br />

satisfaction while reducing<br />

utility costs.<br />

Mac-Gray is proud to introduce Change Point – a revolutionary,<br />

Internet-based laundry payment and monitoring system,<br />

incorporating patented technology and proprietary features<br />

to ensure 100-percent revenue accountability, increased<br />

resident satisfaction and more.<br />

By connecting washers and dryers to the Internet, Change<br />

Point gives residents the ability to pay for each cycle with a<br />

debit card, credit card or coin, eliminating the chore of finding<br />

the correct number of quarters and the need to keep track of or<br />

replenish a laundry card. Change Point also utilizes Mac-Gray’s<br />

proprietary LaundryView monitoring system, offering robust<br />

service and revenue-tracking capabilities for property owners.<br />

To learn more about Change Point, please visit www.mac<br />

gray.com/changepoint.<br />

Multicom Inc.<br />

1076 Florida Central Parkway<br />

Longwood, FL 32750<br />

P: 407-337-7779<br />

F: 407-339-0204<br />

Contact: Scott Brietz<br />

E: Multicom@multicominc.com<br />

W: www.multicominc.com<br />

Segments of Industry Served: MDU/PCO; Telcos;<br />

Cable TV; Hospitality<br />

Products and Services: Active Electronics – Wireline;<br />

Video Headends and Related Equipment; Passives – Outside<br />

Plant; Passives – Inside Plant; Customer-Premises<br />

Equipment; Structured Wiring; Test Equipment; Internet<br />

and Video Services/Programming; Other Managed<br />

Services; Planning, Design or Construction; Training<br />

Multicom is proud to announce a complete FTTH RFoG solution<br />

that includes Multicom’s 1550 transmitter, high-power<br />

EDFA, optical splitters, nano node and high-sensitivity return<br />

path receiver. Designed to scale to a wide variety of applications<br />

from greenfield to HFC upgrades to GPON migration, this<br />

solution enables Multicom to provide all required active and<br />

passive components for complete, end-to-end FTTH solutions.<br />

Multicom’s RFoG products integrate with existing headends,<br />

CMTS and set-top boxes, resulting in a seamless, cost-<br />

hot proDuctS<br />

34 | BROADBAND PROPERTIES | www.broadbandproperties.com | March/april 2011<br />

R<br />

effective deployment.<br />

Multicom’s sales engineers<br />

have FTTH Professional<br />

Certification and<br />

proven track records for<br />

providing the product<br />

and service solutions you<br />

need. Stocking 13,000<br />

products from more than<br />

270 of the world’s major<br />

manufacturers, we provide<br />

answers to today’s<br />

most challenging issues and the products to implement even<br />

the most sophisticated projects.<br />

Headquartered in Orlando, Fla., since 1982, Multicom is<br />

a full-line stocking distributor and manufacturer of products<br />

used for end-to-end integration of voice, data, and video over<br />

fiber, coax and copper at cost-effective prices. Call Multicom<br />

at 800-423-2594, email multicom@multicominc.com or visit<br />

www.multicominc.com<br />

OFS<br />

2000 N.E. Expressway,<br />

Ste. B030<br />

Norcross, GA 30071<br />

P: 888-<strong>Fiber</strong>-Help<br />

������������������<br />

888-342-3743 from inside the U.S.A.<br />

770-798-5555 from outside the U.S.A.<br />

For questions about Specialty Photonics<br />

Division Products and Services: 860-678-0371<br />

F: 770-798-3872<br />

E: ofs@ofsoptics.com<br />

W: www.ofsoptics.com<br />

Segments of Industry Served: MDU/PCO; Telcos;<br />

Cable TV; Municipalities<br />

Products and Services: Passives – Outside Plant;<br />

Passives – Inside Plant; Test Equipment; Planning,<br />

Design or Construction<br />

OFS is a world-leading<br />

designer, manufacturer<br />

and provider<br />

of optical fiber, optical fiber cable, FTTx, optical connectivity<br />

and specialty photonics products. Our manufacturing and research<br />

divisions work together to provide innovative products<br />

and solutions that traverse many different applications as they<br />

link people and machines worldwide. Between continents, between<br />

cities, around neighborhoods and into homes and businesses<br />

of digital consumers we provide the right optical fiber,<br />

optical cable and components for efficient, cost-effective transmission.<br />

OFS’ corporate lineage dates back to 1876 and included<br />

technology powerhouses such as AT&T and Lucent Technologies.<br />

Today, OFS is owned by Furukawa Electric, a multibillion-dollar<br />

global leader in optical communications.


Headquartered in Norcross (near Atlanta), Ga., OFS is a<br />

global provider with facilities in Avon, Ct.; Carrollton, Ga.;<br />

Somerset, N.J.; and Sturbridge, Mass., as well as in Denmark,<br />

Germany and Russia.<br />

radiant Communications<br />

5001 Hadley Rd.<br />

South Plainfield, NJ 07080<br />

P: 908-757-7444<br />

F: 908-757-8666<br />

Contact: Tom Lewis<br />

E: tlewis@rccfiber.com<br />

W: www.rccfiber.com<br />

Segments of Industry Served: MDU/PCO; Hospitality; Municipalities<br />

Products and Services: Video Headends and Related<br />

Equipment; Customer-Premises Equipment<br />

Easily insert local content including security camera feeds, locally<br />

created video content, character generators and more with<br />

Radiant’s local digital insertion products. They come in rackmountable<br />

and wall-mountable versions or in compact cassette<br />

packages the size of cable modems. Easily configurable with a<br />

front panel or our simple-to-use GUI. Features drop/add capabilities<br />

that give property owners control of their channel<br />

lineups.<br />

Spot On networks<br />

55 Church Street<br />

New Haven, CT 06510<br />

P: 877-768-6687<br />

F: 203-773-1947<br />

Contact: Jessica DaSilva<br />

E: jdasilva@spotonnetworks.com<br />

W: http://www.spotonnetworks.com<br />

Segments of Industry Served: MDU/PCO; Hospitality<br />

Products and Services: Internet and Video Services/<br />

Programming; Other Managed Services<br />

Spot On Networks offers communitywide Wi-Fi networks<br />

for the multifamily industry. Residents can use their laptops,<br />

smartphones, tablets, gaming devices and more throughout<br />

the entire community – in their apartments, at the pool, in the<br />

clubhouse and more! Spot On’s networks are fully managed<br />

and CALEA-compliant and offer unlimited data for smartphones<br />

and tablets.<br />

Spot On has deployed networks at more than 400 properties<br />

covering more than 70,000 residential units in 26 states. Spot<br />

On deploys 802.11 b/g/n networks. In addition to providing<br />

hot proDuctS<br />

communitywide Internet<br />

access, a Spot On Wi-Fi network<br />

can act as a backbone<br />

for energy management, water<br />

management and utility<br />

cost-saving devices.<br />

High-speed Wi-Fi Internet<br />

has been ranked as the<br />

number one amenity for<br />

apartment residents. Call<br />

now to find out more about<br />

the benefits of deploying<br />

a managed Wi-Fi network<br />

throughout your community:<br />

877-768-6687 www.<br />

spotonnetworks.com<br />

Sumitomo electric<br />

lightwave<br />

PO Box 13445<br />

78 T.W. Alexander Dr.<br />

Research Triangle Park, NC 27709<br />

P: 800-358-7378<br />

Contact: Customer Service<br />

E: info@sumitomoelectric.com<br />

W: www.sumitomoelectric.com<br />

Segments of Industry Served: MDU/PCO; Telcos;<br />

Cable TV; Hospitality; Municipalities<br />

Products and Services: Passives – Outside Plant;<br />

Passives – Inside Plant; Customer-Premises Equipment;<br />

Structured Wiring; Planning, Design or Construction<br />

The Lynx2-MPO, offered for ribbon and round-cord, loosetube<br />

and patch-cord terminations (pictured top right), brings<br />

breakthrough technology to customized on-site connectivity<br />

for virtually any network termination project. Yielding better<br />

performance than other termination methods, the Lynx2-<br />

MPO allows technicians to terminate typically in less than<br />

three minutes for ribbon and less than five for loose tube. Build<br />

cable to the exact length on site and make quick repairs and<br />

restorations without pre-engineering, logistical delays, or the<br />

risk of shorts and slack that preterminated cables and pigtails<br />

entail. Also offered are SC, ST, LC, and FC connectors.<br />

Sumitomo Electric Lightwave offers solutions that include<br />

the industry’s highest-quality and most reliable optical fiber<br />

cable, fusion splicers and accessories, optical network products<br />

March/april 2011 | www.broadbandproperties.com | BROADBAND PROPERTIES | 35


and FutureFLEX air-blown network solutions. Visit www.<br />

sumitomoelectric.com, www.futureflex.com and http://www.<br />

youtube.com/user/SumitomoRTP. Call today and ask for<br />

customer service at 800-358-7378. Visit us at the <strong>Broadband</strong><br />

<strong>Properties</strong> Summit, Booth# 513.<br />

Suttle<br />

1001 E. Hwy 212<br />

Hector, MN 55342<br />

P: 800-852-8662<br />

F: 320-848-6218<br />

E: suttlesales@commsysinc.com<br />

W: www.suttleonline.com<br />

Segments of Industry Served: MCU/PCO; Telcos<br />

Products and Services: Passives – Outside Plant;<br />

Passives – Inside Plant; Customer-Service Equipment;<br />

Structured Wiring<br />

Suttle HomePNA Coax Gigabit<br />

Ethernet Adapter (CES-<br />

2CUA): Suttle’s HPNA Gigabit<br />

Coax Ethernet Adapter<br />

(CES-2CUA) enables<br />

setup of a home network<br />

using existing coaxial<br />

cable with no additional<br />

wiring or setup. Simply connect<br />

the home’s gateway device to an<br />

adapter and plug it into any coax connector<br />

to feed IP video and high-speed data to any coax<br />

port on the network. The adapter includes intelligence to<br />

support various services, including VLAN tagging, queuing<br />

schemes and bandwidth control.<br />

televes uSA llC<br />

9800 Mount Pyramid Ct., Ste. 400<br />

Englewood, CO 80112<br />

P: 303-256-6767<br />

F: 303-256-6769<br />

Contact: Javier Ruano<br />

E: jruano@televes.com<br />

W: www.televes.com<br />

Segments of Industry Served: MDU/PCO; Cable TV; Hospitality<br />

Products and Services: Active Electronics – Wireline; Video<br />

Headends and Related Equipment; Passives – Outside<br />

Plant; Passives – Inside Plant; Customer-Premises Equipment;<br />

Test Equipment<br />

H45 Advance Series – Advanced HDTV System Analyzers:<br />

The H45 Advance series are new-generation, real-time digital<br />

processing test solutions designed for digital and analog cable,<br />

satellite and off-air HDTV signal analysis.<br />

KEY FEATURES:<br />

• Real-time digital processing<br />

hot proDuctS<br />

36 | BROADBAND PROPERTIES | www.broadbandproperties.com | March/april 2011<br />

• MPEG-4, full-HD TV signal display and measurements<br />

• Optical interface with built-in optical receiver<br />

• Professional-grade spectrum analyzer (2 MHz to 3.3 GHz)<br />

• Workflow automation<br />

• Portability and ease of use<br />

HDTV TESTING MADE SIMPLE – One single tool<br />

covers every testing need:<br />

• CATV – QAM Annex A/B/C · NTSC<br />

• SATELLITE – DVB-S · 8PSK · DSS · DVB-S2<br />

• OFF-AIR – ATSC/8VSB · NTSC<br />

• DIGITAL PROCESSING:<br />

Traditional sweep architecture meters spend more time<br />

missing signal information than measuring it! The H45 has<br />

been designed from the ground up to instantaneously obtain<br />

all the information in a signal in real time. With 20MHz digitally<br />

captured every 10ms, no detail escapes H45’s eye. The<br />

H45 with real-time digital processing is a total revolution.<br />

time Warner Cable<br />

13820 Sunrise Valley Drive<br />

Herndon, VA 20171<br />

P: 703-345-2749<br />

Contact: Joanne C. Luger<br />

E: joanne.luger@twcable.com<br />

W: timewarnercable.com<br />

Segments of Industry Served: MDU/PCO<br />

Products and Services: Internet and Video Services/<br />

Programming<br />

Time Warner Cable Mobile Internet provides<br />

our customers with an<br />

online connection that’s<br />

there for them on their<br />

terms. It’s a totally portable<br />

Internet connection, so our<br />

customers never have to<br />

search for Wi-Fi hotspots.<br />

The IntelliGo Mobile Hotspot<br />

creates a personal<br />

hotspot to share a secure,<br />

superfast Internet connection<br />

with up to five users or


Wi-Fi enabled devices that include printers, cameras, laptops<br />

and game consoles. It’s perfect for business meetings, road<br />

trips, family outings and more. It’s portable enough to fit into<br />

a briefcase, backpack, purse or even a jacket pocket. It is user<br />

friendly with a simple interactive setup and has GPS capability,<br />

expandable storage and more. It is the safe and secure Time<br />

Warner Cable Internet our customers know, on the go.<br />

verizon enhanced Communities<br />

13100 Columbia Pike<br />

Silver Springs, MD 20904<br />

P: 866-638-6066<br />

Contact: Jessie Chesson<br />

E: Jessie.a.chesson@<br />

verizon.com<br />

W: www.verizon.com/communities<br />

Segments of Industry Served: MDU/PCO<br />

Products and Services: Internet and Video Services/<br />

Programming; Customer-Facing Applications<br />

Verizon Enhanced Communities is Verizon’s business unit<br />

dedicated to serving single- and multifamily residential,<br />

mixed-use, and commercial multitenant properties with Verizon<br />

FiOS Internet, TV and phone services delivered b over the<br />

award-winning Verizon FiOS all-fiber-optic network. Verizon’s<br />

hot proDuctS<br />

Motorola’s Passive<br />

Optical LAN Solution…<br />

<strong>Fiber</strong> to the ________.<br />

A. Desk<br />

B. Dorm<br />

C. Guestroom<br />

D. Hospital Bed<br />

E. Classroom<br />

F. All of the Above<br />

Motorola’s Passive Optical LAN (POL) Solution is a highly reliable and<br />

economically disruptive LAN solution that will revolutionize how voice,<br />

video and data are distributed throughout the enterprise. POL replaces<br />

existing LAN connections with a single high capacity fiber optical cable<br />

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the laW<br />

Cable Home Wiring rules<br />

and Cable Competition<br />

MDU owners who want to open their properties to multiple cable providers<br />

may be able to use the FCC’s cable home wiring rules for this purpose.<br />

By Carl E. Kandutsch ■ Attorney<br />

Are the FCC’s inside wiring rules,<br />

including the rules for homerun<br />

wiring and cable home wiring,<br />

still relevant in a competitive marketplace<br />

characterized by nonexclusive<br />

access to multidwelling unit (MDU)<br />

properties?<br />

In an article in the January/February<br />

issue of <strong>Broadband</strong> <strong>Properties</strong>, I<br />

identified three reasons property owners<br />

might be reluctant to use the Commission’s<br />

procedures for gaining control<br />

over home-run wiring: First, implementation<br />

of those procedures is complex,<br />

time-consuming and easily blocked or<br />

delayed by incumbent cable operators;<br />

second, whether and how the rules apply<br />

when the same wiring is used by<br />

the incumbent cable operator to deliver<br />

services other than video services is unclear;<br />

and third, the rules may be preempted<br />

by contractual language in the<br />

incumbent’s right-of-entry agreement.<br />

This article suggests ways for MDU<br />

owners to leverage other FCC regulations<br />

– the rules for cable home wiring<br />

(47 C.F.R. § 76.802) – to achieve results<br />

they might otherwise attain by means of<br />

the home-run wiring rules (47 C.F.R.<br />

§ 76.804) while avoiding some of the<br />

problems with those rules.<br />

Note: The legal analyses of FCC<br />

regulations presented in this article are<br />

for informational purposes only and<br />

should not be construed as legal advice.<br />

Interested parties are strongly advised to<br />

consult with legal counsel prior to undertaking<br />

any action based in whole or<br />

in part on the analyses included herein.<br />

To begin, let’s recall some defini-<br />

tions. The FCC defines home-run wiring<br />

as “the wiring from the demarcation<br />

point to the point at which the multichannel<br />

video programming distributor’s<br />

(MVPD’s) wiring becomes devoted<br />

to an individual subscriber or individual<br />

loop.” 1 By contrast, cable home wiring is<br />

“the internal wiring contained within<br />

the premises of a subscriber which begins<br />

at the demarcation point.” 2<br />

Stated without the jargon, home-run<br />

wiring is on the provider’s side of the demarcation<br />

point, and cable home wiring<br />

is on the subscriber’s side of the demarcation<br />

point. The location of the cable<br />

demarcation point therefore determines<br />

which wiring is home-run wiring and<br />

which wiring is cable home wiring.<br />

We will return to the concept of<br />

the demarcation point later. First, we<br />

provide a brief summary of the cable<br />

home wiring rules, with an eye toward<br />

answering the question: Can anything<br />

be achieved by use of the home-run<br />

wiring procedures that cannot be more<br />

easily achieved by use of the cable home<br />

wiring rules?<br />

CABle HOMe WIrInG ruleS<br />

The cable home wiring rules were first<br />

promulgated in 1993 to address the<br />

40 | BROADBAND PROPERTIES | www.broadbandproperties.com | March/april 2011<br />

disposition of in-building wiring when<br />

customers in single-family homes terminated<br />

cable services. The rule was<br />

intended as a consumer protection measure<br />

to prevent a cable operator from preempting<br />

a subscriber’s desire to switch to<br />

another cable provider by threatening to<br />

remove wiring from inside the subscriber’s<br />

home. The rule prohibited removing<br />

wiring on termination of service unless<br />

the cable company had offered to sell the<br />

wiring to the subscriber at a quoted purchase<br />

price.<br />

In its 1997 rule-making proceeding,<br />

the FCC expanded its regulatory regime<br />

to address wiring in MDU buildings.<br />

To accommodate wiring in the MDU<br />

environment, the Commission divided<br />

in-building wiring into two subcategories:<br />

cable home wiring runs inside an<br />

MDU resident’s living unit, ending at<br />

the demarcation point 12 inches outside<br />

the unit, and home-run wiring extends<br />

from the demarcation point through the<br />

building’s hallways to the cable operator’s<br />

junction box (where the wiring first<br />

becomes “devoted to an individual subscriber”).<br />

Cable home wiring in MDU<br />

units would be treated like wiring in a<br />

single-family residence under 47 C.F.R.<br />

About the Author<br />

Carl Kandutsch holds a Ph.D. from Yale University and a J.D. from the University<br />

of Washington. A former FCC lawyer, he currently has a private legal practice and<br />

is a principal at ComGroup Associates LLC, a consulting firm that represents professionals<br />

in the multifamily real estate industry with regard to telecommunications<br />

matters. You can reach Carl at ckandutsch@verizon.net or 207-659-6247. Find out<br />

more at www.kandutsch.com.


§ 76.802 (with minor adjustments), and<br />

home-run wiring would be subject to<br />

the procedures specified in 47 C.F.R. §<br />

76.804.<br />

Unlike the home-run wiring rules,<br />

which regulate the relationship between<br />

the cable operator and the owner of the<br />

MDU building, the cable home wiring<br />

rules address the relationship between<br />

the cable operator and the subscriber.<br />

The FCC’s rule for cable home wiring<br />

in MDU buildings provides that when<br />

an individual subscriber in an MDU<br />

building voluntarily terminates service,<br />

the cable operator may not remove the<br />

cable home wiring unless it offers to sell<br />

the wiring to the terminating subscriber<br />

at replacement cost, the subscriber declines,<br />

and neither the MDU owner nor<br />

the alternative provider notifies the cable<br />

operator that it wishes to purchase the<br />

wiring after the subscriber declines.<br />

“If the [incumbent cable operator] is<br />

entitled to remove the cable home wiring,<br />

it must then remove the wiring within<br />

seven days of the subscriber’s decision<br />

[not to purchase], under normal operating<br />

conditions, or make no subsequent<br />

attempt to remove it or restrict its use.” 3<br />

The effect of the cable home wiring<br />

rules is to transfer ownership of the home<br />

wiring – the cable wiring on the subscriber’s<br />

side of the demarcation point – from<br />

the incumbent cable company to the subscriber<br />

who terminates cable service. In<br />

other words, home wiring not removed<br />

by the incumbent within seven days after<br />

the subscriber’s voluntary termination<br />

of cable service is deemed abandoned to<br />

the subscriber. Presumably (depending<br />

on the state’s abandoned-property laws),<br />

when a former cable subscriber moves<br />

out of his or her unit without removing<br />

the home wiring, that wiring is abandoned<br />

and becomes the property of the<br />

building owner.<br />

As the legal owner of home wiring<br />

that is not removed after termination<br />

of services, the terminating subscriber<br />

or the property owner may authorize an<br />

alternative video provider to connect its<br />

signal distribution system to the wiring<br />

at the demarcation point. The incumbent<br />

provider has an affirmative obligation to<br />

facilitate the alternative provider’s access<br />

the laW<br />

Placing the demarcation point 12 inches outside<br />

a subscriber’s doorway did not help alternative<br />

providers gain access, because that point was<br />

usually behind drywall and inaccessible.<br />

to the wiring at that point. According<br />

to the rule, incumbent cable operators<br />

“must take reasonable steps within their<br />

control to ensure that an alternative service<br />

provider has access to the home wiring<br />

at the demarcation point.” 4<br />

tHe SHeetrOCk OrDer’S eFFeCt<br />

As mentioned above, the cable demarcation<br />

point is important because it marks<br />

the boundary between cable home wiring<br />

(on the subscriber’s side of the demarcation<br />

point) and home-run wiring<br />

(on the provider’s side). The FCC defines<br />

the cable demarcation point as “a<br />

point at (or about) 12 inches outside of<br />

where the cable wire enters the subscriber’s<br />

dwelling unit, or, where the wire is<br />

physically inaccessible at such point, the<br />

closest practicable point thereto that<br />

does not require access to the individual<br />

subscriber’s dwelling unit.” 5<br />

If one of the essential functions of<br />

the demarcation point was to facilitate<br />

competition by designating a location<br />

at which alternative providers could access<br />

existing inside wiring, 6 the FCC’s<br />

definition did not well serve that goal:<br />

Apartment owners were loath to allow<br />

alternative video providers to bore<br />

holes through drywall in the hallway 12<br />

inches outside residential units, and few<br />

alternative providers were eager to snake<br />

cable wiring from a junction box behind<br />

drywall through hallways to individual<br />

units.<br />

The Commission addressed this dilemma<br />

in 2007 by issuing the so-called<br />

Sheetrock Order. 7 In that Order, the<br />

FCC ruled that in any building where<br />

the inside wiring is located behind drywall<br />

at the presumptive demarcation<br />

point 12 inches outside a unit, the wiring<br />

is considered to be “physically inaccessible,”<br />

and the demarcation point is<br />

located at the point where the wiring<br />

first becomes physically accessible. In a<br />

typical MDU building, the wiring first<br />

becomes physically accessible at the incumbent’s<br />

junction box.<br />

The Sheetrock Order was first announced<br />

in the FCC’s 2003 amendment<br />

of the wiring rules. 8 Cable overbuilder<br />

RCN-BeCoCom LLC had filed a request<br />

for a letter ruling that described<br />

its difficulties accessing cable home wiring<br />

at demarcation points 12 inches outside<br />

subscribers’ units. Because property<br />

owners were reluctant to allow RCN<br />

to drill through drywall in hallways at<br />

demarcation points, RCN’s only options<br />

were to install additional sets of<br />

home-run wires or to access the wiring<br />

at incumbents’ junction boxes in utility<br />

closets.<br />

The first option was a nonstarter because<br />

building owners objected to the<br />

disruption associated with installing<br />

a second wire. As for the second possibility,<br />

“[n]or was connecting to the<br />

operator’s existing wire [at the junction<br />

box] an option … because the operator<br />

refused to cooperate in allowing such a<br />

connection.” Therefore, “RCN urges the<br />

Commission to find that cable wiring<br />

behind Sheetrock is ‘physically inaccessible,’<br />

such that the demarcation point<br />

should be located not at the 12-inch<br />

mark, but rather at the operator’s junction<br />

box.” 9 RCN’s request was granted.<br />

Although the FCC surely understood<br />

that, for all practical purposes,<br />

its Sheetrock Order would move the demarcation<br />

point to the junction box in<br />

a typical MDU building, the Commission<br />

chose not to make that understanding<br />

explicit. The Commission discreetly<br />

addressed the matter in a footnote: “We<br />

note that exactly where the wiring will<br />

become accessible (because it is no longer<br />

behind brick, cinderblock or sheetrock)<br />

will vary building by building.”<br />

March/april 2011 | www.broadbandproperties.com | BROADBAND PROPERTIES | 41


the laW<br />

Under the cable home wiring rules, an<br />

alternative provider can access home wiring at<br />

the demarc point seven days after the<br />

subscriber terminates cable service.<br />

The net effect of the Sheetrock Order<br />

is this:<br />

In any case where video cable wiring<br />

12 inches outside a residential unit<br />

is concealed behind drywall, the cable<br />

demarcation point is located at the junction<br />

box. Therefore, all video wiring on<br />

the subscriber’s side of the junction box,<br />

extending all the way inside the subscriber’s<br />

unit, is considered cable home<br />

wiring, and no home-run wiring exists.<br />

Recall that home-run wiring is defined<br />

as “the wiring from the demarcation<br />

point to the point at which the<br />

MVPD’s wiring becomes devoted to<br />

an individual subscriber or individual<br />

loop.” According to the Sheetrock Order<br />

in the circumstance described, the<br />

demarcation point is located at the junction<br />

box. However, the junction box is<br />

also “the point at which the MVPD’s<br />

wiring becomes devoted to an individual<br />

subscriber.” Because the demarcation<br />

point and the point at which the<br />

MVPD’s wiring becomes devoted to an<br />

individual subscriber are one and the<br />

same, there is no home-run wiring.<br />

On the other hand, cable home<br />

wiring is defined as “the internal wiring<br />

contained within the premises of a<br />

subscriber which begins at the demarcation<br />

point.” If the demarcation point<br />

is located at the junction box, then all<br />

the horizontal wiring – extending from<br />

within the premises of the subscriber to<br />

the junction box – falls within the definition<br />

of cable home wiring.<br />

If the purpose of the FCC’s homerun<br />

wiring procedures is to allow a<br />

property owner to gain control over in-<br />

building cable wiring so as to make the<br />

wiring available to an alternative provider<br />

at the incumbent provider’s junction<br />

box, it appears that following the<br />

Sheetrock Order, the same result can be<br />

more economically achieved by use of<br />

the FCC’s rules for cable home wiring.<br />

To what extent do the three problems<br />

associated with use of the homerun<br />

wiring rules affect application of the<br />

cable home wiring rules?<br />

tIMe AnD COMPlexIty<br />

An MDU owner may invoke the FCC’s<br />

home-run wiring procedures to facilitate<br />

a competing video provider’s access to<br />

inside wiring at the incumbent’s junction<br />

box. This process can require three to<br />

four months’ time to complete, following<br />

the building owner’s delivery of initial<br />

notice to the incumbent cable provider,<br />

assuming that the incumbent cooperates.<br />

However, if the previous analysis is<br />

correct, application of the cable home<br />

wiring rules should (in theory) produce<br />

the same result – permitting access by<br />

an alternative video provider to existing<br />

inside wiring at an incumbent’s junction<br />

box – without comparable complications<br />

or delays.<br />

Under the unit-by-unit home-run<br />

wiring rules, a property owner must<br />

provide 60 days’ notice to an MSO before<br />

requiring the MSO to sell, remove<br />

or abandon home run wiring that extends<br />

from the junction box to the subscriber<br />

unit. However, under the cable<br />

home wiring rules, an alternative video<br />

provider has a right to access home wiring<br />

at the demarcation point seven days<br />

after the subscriber terminates cable service<br />

(assuming that the building owner<br />

consents and the subscriber wishes to<br />

switch video service providers) – and,<br />

according to the FCC’s Sheetrock Order,<br />

the demarcation point is located at<br />

the junction box.<br />

In other words, the cable home wiring<br />

rules, as modified by the Sheetrock<br />

Order, provide a much more efficient<br />

route to the same destination.<br />

42 | BROADBAND PROPERTIES | www.broadbandproperties.com | March/april 2011<br />

MultIPle ServICeS<br />

As I discussed in the previous article, the<br />

application of home-run wiring rules to<br />

wiring used to deliver data or telephone<br />

services in addition to multichannel<br />

video programming is unclear. An incumbent<br />

may argue that its ongoing<br />

use of the wire to deliver data or VoIP<br />

signals to subscribers gives it a “legally<br />

enforceable right to maintain” that wire,<br />

thus creating uncertainty surrounding<br />

application of the FCC’s transitional<br />

procedure for home-run wiring.<br />

No such ambiguity exists in the language<br />

of the cable home wiring rule: An<br />

incumbent’s obligations – including the<br />

obligation to take affirmative steps to facilitate<br />

an alternative video provider’s access<br />

to wiring at the demarcation point –<br />

are triggered by the subscriber’s “voluntary<br />

termination of cable service.”<br />

Cable service is defined to mean the<br />

“one-way transmission to subscribers of<br />

video programming, or other programming<br />

service” 10 and does not include<br />

two-way transmissions such as Internet<br />

access service or telephone service. Because<br />

neither Internet access nor telephone<br />

service is a cable service, the application<br />

of 47 C.F.R. § 76.802 is not<br />

affected by the incumbent’s continued<br />

use of cable home wiring for the provision<br />

of either or both of those services.<br />

Therefore, an incumbent’s use of existing<br />

inside wiring for delivery of multiple<br />

services should not affect the application<br />

of the FCC’s cable home wiring<br />

rules.<br />

PreeMPtIOn OF WIrInG ruleS<br />

By COntrACt<br />

A final obstacle to use of the FCC’s<br />

home-run wiring procedures is the ease<br />

with which those procedures may be<br />

preempted by language contained in a<br />

contract between the incumbent provider<br />

and the property owner. It is not<br />

unusual for right-of-entry agreements<br />

written after 1997 to include provisions<br />

specifying that the disposition of inside<br />

wiring upon termination of the agreement<br />

is governed not by the FCC rules<br />

but by another procedure specified in<br />

the agreement. Because the home-run<br />

wiring rules are not intended to nullify<br />

contractual or other legal rights secured<br />

by state law, such provisions are enforce-


able. A property owner who signs such an agreement and later<br />

wishes to make the existing wiring available to an alternative<br />

provider may be unable to utilize the FCC procedures.<br />

In contrast with the home-run wiring rules, which regulate<br />

dealings between cable operators and MDU property owners,<br />

the FCC’s rules for cable home wiring are, in essence, consumer<br />

protection regulations intended to benefit cable subscribers. It<br />

is hard to see how a contract between a cable operator and an<br />

MDU property owner could impair rights guaranteed under<br />

federal law to a third party.<br />

For example, it is unlikely that a property owner and an<br />

incumbent cable operator could effectively contract to block<br />

application of the cable home wiring rules by designating a demarcation<br />

point inside the subscriber’s unit, by stipulating that<br />

the cable company need not offer to sell the home wiring to<br />

an MDU resident who voluntarily terminates the incumbent’s<br />

video programming service or by agreeing that the incumbent<br />

may maintain control over the wiring indefinitely after the termination<br />

of video service.<br />

On the other hand, a right-of-entry agreement can circumvent<br />

the cable home wiring rules by declaring that the wiring<br />

belongs to the property owner, who grants the incumbent the<br />

exclusive right to use the wiring. 47 C.F.R. § 76.801 specifies<br />

that the rules “do not apply where the cable home wiring … is<br />

considered to be a fixture by state or local law in the subscriber’s<br />

jurisdiction.” The FCC procedures, whether for home-run<br />

wiring or for cable home wiring, are not intended to affect the<br />

legal rights of property owners under existing state law.<br />

COnCluSIOn<br />

The difficulties surrounding use of the FCC’s procedures for<br />

gaining control over existing home-run wiring belonging to an<br />

incumbent cable operator may account for the apparent reluctance<br />

of MDU property owners to rely on those procedures.<br />

However, the FCC’s rules for cable home wiring as modified by<br />

the 2007 Sheetrock Order, as we interpret them, suggest that a<br />

property owner can use the cable home wiring rules to achieve<br />

the same result without most of the difficulties associated with<br />

the home-run wiring procedures.<br />

This is not to say that the FCC specifically intended its<br />

Sheetrock Order to produce the result outlined in this article<br />

or that a competitive strategy based on the analysis set forth<br />

in this article is without difficulties of its own. It suggests that<br />

such a strategy may be worth trying until the Commission<br />

undertakes the complicated task of unifying its inside-wiring<br />

rules or until those rules are rendered obsolete by further developments<br />

in wireless technology. BBP<br />

enDnOteS<br />

1 47 C.F.R. 76.800(d).<br />

2 47 C.F.R. 76.5(ll).<br />

3 47 C.F.R. § 76.802(a)(2).<br />

4 47 C.F.R. § 76.802(j).<br />

5 47 C.F.R. § 76.5(mm)(2).<br />

6 The Commission has described the cable demarcation point as “the point<br />

at which an alternative multichannel video programming distributor<br />

(MVPD) would attach its wiring to the subscriber’s wiring in order to<br />

provide service,” and as the location where “a competing provider may ac-<br />

the laW<br />

The FCC’s rules for cable home<br />

wiring are, in essence, consumer<br />

protection regulations intended to<br />

benefit cable subscribers. It is hard<br />

to see how a contract between a<br />

cable operator and an MDU owner<br />

could impair a third party’s rights.<br />

cess existing cable home wiring in an MDU building.” Report and Order<br />

and Declaratory Ruling (CS Docket No. 95-184, rel. June 8, 2007), 5.<br />

“Location of the demarcation point is significant because under our rules,<br />

the demarcation point is the place where competing providers may access<br />

existing home wiring in an MDU building.” First Order on Reconsideration<br />

and Second Report and Order (CS Docket No. 95-184, rel. Jan. 29,<br />

2003), 49.<br />

7 Report and Order and Declaratory Ruling (CS Docket No. 95-184, rel.<br />

June 8, 2007).<br />

8 First Order on Reconsideration and Second Report and Order (CS<br />

Docket No. 95-184, rel. Jan. 29, 2003).<br />

9 Id. at 51.<br />

10 47 C.F.R. § 76.5(ff).<br />

March/april 2011 | www.broadbandproperties.com | BROADBAND PROPERTIES | 43


the laW<br />

FCC to Impose New<br />

Disability access rules<br />

On Service Providers<br />

New rules for making video, VoIP, messaging and videoconferencing<br />

services more accessible are now in development. Some of them seem<br />

likely to impose costs on service providers and equipment vendors.<br />

By Robert D. Primosch ■ Wilkinson Barker Knauer LLP<br />

Providers of video, voice and data<br />

services and their vendors should<br />

familiarize themselves with the<br />

FCC’s implementation of the Twenty-<br />

First Century Communications and<br />

Video Accessibility Act of 2010. The<br />

purpose of the new law is to provide<br />

people with disabilities, including those<br />

who have visual or hearing impairments,<br />

with improved access to modern communications<br />

services and technologies.<br />

The FCC must promulgate many<br />

rules to implement the new law, including<br />

the ones discussed below, beginning<br />

October 8, 2011, or shortly thereafter.<br />

Following is an overview of some of<br />

the more significant issues on which the<br />

FCC is currently seeking comment from<br />

industry and the public. Further details<br />

are available in the FCC Notices of Proposed<br />

Rulemaking shown below.<br />

vIDeO DeSCrIPtIOn<br />

The Act directs the FCC to reinstate and<br />

modify rules that require television stations<br />

and multichannel video programming<br />

distributors (MVPDs) to provide<br />

or pass through a minimum amount of<br />

video programming that includes video<br />

description, defined as “the insertion of<br />

audio narrated descriptions of a television<br />

program’s key visual elements into natural<br />

pauses in the program’s dialogue.” In<br />

effect, video description does for visually<br />

impaired subscribers what closed captioning<br />

does for those who are hearing<br />

impaired. A copy of the FCC’s Notice of<br />

Under proposed rules, video providers must<br />

pass through video descriptions for the visually<br />

impaired if they are technically capable of doing<br />

so. Technical capability hasn’t yet been defined.<br />

Proposed Rulemaking for this matter is<br />

available at http://tinyurl.com/5tyueaj.<br />

Comments and reply comments are due<br />

April 28 and May 27, respectively<br />

Under the reinstated rules, beginning<br />

January 1, 2012, all MVPDs generally<br />

would be required to pass through<br />

any video description when a broadcast<br />

station or nonbroadcast network provides<br />

it, if the MVPD has the technical<br />

capability necessary to do so on the<br />

channel over which it distributes the<br />

station or network in question. MVPDs<br />

with 50,000 or more subscribers would<br />

be required to provide 50 hours per calendar<br />

quarter of video-described primetime<br />

or children’s programming on each<br />

of the top five nonbroadcast networks<br />

that they carry.<br />

About the Author<br />

Robert Primosch is a partner at Wilkinson Barker Knauer LLP, a law firm in Washington,<br />

D.C., that specializes in telecommunications law. You can reach him at<br />

rprimosch@wbklaw.com.<br />

44 | BROADBAND PROPERTIES | www.broadbandproperties.com | March/april 2011<br />

The FCC is examining, among<br />

other things, how it should determine<br />

whether an MVPD has the technical capability<br />

to pass through video description.<br />

For example, transmitting multiple<br />

audio tracks, even digitally, may<br />

require MVPDs to deploy equipment<br />

that they do not have in place today.<br />

At what point the costs of compliance<br />

should be considered high enough to<br />

render an MVPD technically incapable<br />

of complying with the rules has not yet<br />

been decided.<br />

In addition, the FCC has proposed<br />

to reinstate the process through which<br />

an otherwise technically capable MVPD<br />

may seek an exemption from the rules<br />

based on economic burden. Interested<br />

parties are asked to comment on the


economic costs of the pass-through requirement<br />

and on whether any considerations<br />

are unique to particular MVPD<br />

delivery technologies, such as IPTV.<br />

Finally, the Act requires the FCC to<br />

initiate a future inquiry into whether<br />

video description requirements are feasible<br />

for video programming distributed<br />

via the Internet.<br />

ADvAnCeD COMMunICAtIOnS<br />

ServICeS<br />

The Act also requires that advanced<br />

communications services (ACS) be accessible<br />

to persons with disabilities to the<br />

extent that accessibility is achievable. If<br />

accessibility is not achievable, then an<br />

entity covered by the Act must “ensure<br />

that its equipment or service is compatible<br />

with existing peripheral devices or<br />

specialized customer-premises equipment<br />

commonly used by individuals<br />

with disabilities to achieve access,” if that<br />

is achievable.<br />

In addition, each ACS provider “has<br />

the duty not to install network features,<br />

functions or capabilities that impede<br />

accessibility or usability.” The FCC’s<br />

Notice of Proposed Rulemaking on<br />

this matter is available at http://tinyurl.<br />

com/6dkfbrg. Comments and reply<br />

comments are due April 13 and May 13,<br />

respectively, and the FCC must finalize<br />

these rules by October 8, 2011.<br />

In this context, ACS is defined to<br />

include interconnected and noninterconnected<br />

VoIP service, electronic messaging<br />

service and interoperable videoconferencing<br />

service. The FCC proposes<br />

to define “disability” as a “physical or<br />

mental impairment that substantially<br />

limits one or more of the major life activities<br />

of an individual; a record of such<br />

an impairment; or being regarded as<br />

having such an impairment.”<br />

The FCC’s accessibility regulations<br />

for ACS will apply to any “manufacturer<br />

of equipment used for [ACS], including<br />

end user equipment, network equipment<br />

and software.” As to service providers,<br />

the FCC seeks comment on its<br />

proposal to apply the Act’s requirements<br />

to “all entities that make ACS available<br />

in interstate commerce, including resellers<br />

and aggregators.” The FCC also proposes<br />

to apply the Act to “entities that<br />

the laW<br />

Advanced communications services must now be<br />

accessible to persons with disabilities, if possible,<br />

but service providers have some flexibility<br />

in choosing how to do this.<br />

provide ACS over their own networks”<br />

and all entities that make ACS available<br />

in or affecting interstate commerce,<br />

including providers of applications or<br />

services that are accessed (that is, downloaded<br />

and run) by users over other service<br />

providers’ networks.<br />

The Act gives manufacturers and service<br />

providers some flexibility in choosing<br />

how they will make their products<br />

or services accessible. They may do so<br />

either by building accessibility features<br />

into the relevant equipment or service or<br />

“by relying on third-party applications,<br />

peripheral devices, software, hardware<br />

or customer-premises equipment that is<br />

available to consumers at nominal cost<br />

and that can be accessed by people with<br />

disabilities.”<br />

On the issue of achievability, the<br />

FCC proposes to consider only the factors<br />

set forth in the Act, which are<br />

• Nature and cost of steps needed to<br />

make a product or service accessible<br />

• Technical and economic impact<br />

• Type of operations (for example,<br />

the extent to which the FCC should<br />

consider an entity’s status as a new<br />

entrant in the ACS market and<br />

whether that entity has significant<br />

resources to devote to compliance<br />

with the Act’s requirements)<br />

• Industry flexibility (the FCC believes<br />

that it is “preclude[d] from preferring<br />

built-in accessibility over third-party<br />

accessibility solutions” but asks a variety<br />

of questions as to how it should<br />

determine whether a third-party solution<br />

complies with the Act, particularly<br />

as to cost, usability and documentation<br />

and support).<br />

The FCC’s rules also must provide<br />

that “[ACS], the equipment used for<br />

[ACS] and networks used to provide<br />

[such services] may not impair or impede<br />

the accessibility of information content<br />

when accessibility has been incorporated<br />

into that content for transmission<br />

through [such services, equipment or<br />

networks].” The FCC asks whether such<br />

rules should ensure that “the accessibility<br />

information (e.g., captions or descriptions)<br />

are not stripped off when information<br />

is transitioned from one medium<br />

to another”; “parallel and associated<br />

media channels are not disconnected or<br />

blocked”; and “consumers … have the<br />

ability to combine text, video and audio<br />

streaming from different origins.”<br />

The FCC asks how it should implement<br />

the Act’s record-keeping requirements,<br />

which are not insignificant. Beginning<br />

one year after the effective date<br />

of the FCC’s new rules, covered entities<br />

must maintain compliance records that<br />

include their efforts to consult with<br />

individuals who have disabilities, descriptions<br />

of the accessibility features of<br />

products and services, and information<br />

about whether products and services<br />

satisfy the Act’s compatibility requirements.<br />

Complaint-related records must<br />

be maintained as well. An officer must<br />

submit to the FCC an annual certification<br />

that records are being kept in accordance<br />

with the Act.<br />

Finally, the FCC seeks comment on<br />

what remedies and other sanctions it<br />

should consider when an entity violates<br />

the Act. The FCC states that it may issue<br />

an “order directing a manufacturer to<br />

bring its next generation or equipment<br />

or device, and a service provider to bring<br />

its service, into compliance within a reasonable<br />

period of time,” but that ordering<br />

any retrofitting of equipment would<br />

be an inappropriate remedy.<br />

Due to the upcoming statutory<br />

deadlines, both rule makings described<br />

above will be on a fast track. Interested<br />

parties therefore should be prepared<br />

to express their concerns to the FCC<br />

sooner rather than later. BBP<br />

March/april 2011 | www.broadbandproperties.com | BROADBAND PROPERTIES | 45


inDuStry analySiS<br />

Consolidation in the<br />

telecommunications<br />

Industry<br />

Citing economies of scale, telcos have entered a period of rapid consolidation.<br />

What will this trend mean for you?<br />

By Jill Kasle ■ The George Washington University<br />

this is the story of how a momand-pop<br />

telephone company in<br />

Louisiana, founded some 30 years<br />

after AT&T was incorporated, grew big<br />

enough to merge with a gigantic telephone<br />

company that didn’t even exist<br />

when the AT&T divestiture case was<br />

filed – and what this all means for you.<br />

Since the beginning of the telecommunications<br />

business, there has always<br />

been a very large number of very small<br />

companies – the so-called “independent”<br />

telephone companies. These companies<br />

were so small (hundreds of subscribers<br />

instead of the tens of millions that the big<br />

companies had) and so nonoffensive (no<br />

insider trading charges, no antitrust violations)<br />

that they flew largely under the<br />

radar. Though these companies had to<br />

meet obligations imposed by state public<br />

utility commissions and, often, answer to<br />

local governing bodies, for the most part<br />

they were left alone. Even the Modified<br />

Final Judgment, the 1982 court order<br />

that broke up AT&T, said nothing about<br />

independent telephone companies.<br />

But some of these independent companies<br />

are ambitious – and one of the<br />

most ambitious is CenturyLink, a company<br />

based in Monroe, La., that has just<br />

merged with Qwest.<br />

CenturyLink’s beginnings are so<br />

homespun that if a movie had been<br />

made about the origins of the company,<br />

the part of CenturyLink’s founder<br />

would surely have been played by Jimmy<br />

Stewart. In 1921, a man named William<br />

The breakup of the old AT&T created<br />

opportunities for new competitors, which are now<br />

reassembling what was broken apart in 1984.<br />

Clarke Williams, a former manager of<br />

the Ozon Telephone Company in western<br />

Texas, accepted a job in the payroll<br />

department of Southern Bell in Monroe,<br />

La. Shortly thereafter, Williams married<br />

a woman named Marie Hill, a former<br />

teacher and operator for the Mertzon<br />

Telephone Company in Mertzon, Texas.<br />

In 1930, Mr. and Mrs. Williams<br />

purchased the Oak Ridge Telephone<br />

Company, which was located near Monroe,<br />

La., and served all of 75 customers.<br />

The Williamses’ front parlor became the<br />

company headquarters. Marie Williams,<br />

assisted by two young girls, switched<br />

calls around the clock except between<br />

the hours of 10 a.m. and 3 p.m. on Sunday,<br />

when the customers were at church<br />

and Sunday supper. Each month, Marie<br />

Williams wrote out the customers’ bills<br />

by hand, and the Williamses’ eight-year-<br />

46 | BROADBAND PROPERTIES | www.broadbandproperties.com | March/april 2011<br />

old son, Clarke, delivered the bills on<br />

his bike.<br />

In 1946, Clarke Williams came home<br />

from serving in World War II and married<br />

Mary Kathryn Lee. His parents gave<br />

the Oak Ridge Telephone Company to<br />

the young couple as a wedding gift.<br />

For the next 50 years, Clarke Williams<br />

led the company on an acquisitions<br />

spree so extensive that by 2009 the<br />

company, now known as CenturyLink,<br />

had operations in 33 states and was the<br />

largest independent telephone company<br />

in the country and the fourth-largest (by<br />

access lines) telecommunications provider<br />

in the country. Then the economy<br />

tanked, credit dried up, and Century-<br />

Link’s executives retreated to their<br />

boardroom to ponder their next move.<br />

And what a move it turned out to be:<br />

the acquisition of Qwest, a multibillion-<br />

About the Author<br />

Jill Kasle is a law professor at The George Washington University. She was a member<br />

of the defendant’s trial team in United States v. AT&T and, with Professor Christopher<br />

H. Sterling, wrote “Decision to Divest,” a four-volume study of the divestiture<br />

case. You can reach her at kasle@gwu.edu.


dollar company that had acquired,<br />

among other things, U S West, a regional<br />

Bell operating company.<br />

As more and more customers turn to<br />

the Internet as their main form of communication,<br />

wireline companies such<br />

as CenturyLink and Qwest find themselves<br />

in an industry sector where the<br />

competition is heating up. By joining<br />

forces, wireline companies save money,<br />

gain clout and reduce their operating<br />

costs. The merger of CenturyLink and<br />

Qwest, a transaction valued at $25 billion,<br />

promises to be one of the biggest<br />

examples of the benefits of consolidation.<br />

The two companies have estimated<br />

that they will eventually save $625 million<br />

in yearly costs.<br />

CenturyLink and Qwest are by no<br />

means the only couple at this dance:<br />

AT&T just announced a deal, valued at<br />

$39 billion, to acquire T-Mobile, a transaction<br />

so enormous that it has the potential<br />

to reshape the telecommunications<br />

industry.<br />

Experience from the last century,<br />

Innovation for the next.<br />

We can Help! Suttle offers green-field<br />

solutions that give you a high quality,<br />

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Need brown-feild solutions? Suttle offers<br />

retrofit answers such as our HomePNA<br />

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inDuStry analySiS<br />

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So what does all this mean to you?<br />

The answer, of course, depends on who<br />

the “you” is:<br />

• If you’re a customer, you might benefit<br />

from the oft-touted economies<br />

of scale that result from a consolidation;<br />

in other words, you might actually<br />

see lower prices.<br />

• If you’re a broadband consultant,<br />

economic development professional,<br />

or telecommunications lawyer, the<br />

news is definitely good: If the number<br />

and pace of consolidations really<br />

does increase, as forecasts suggest,<br />

there will be plenty of fee-based<br />

work to go around.<br />

• If you’re a real estate developer or city<br />

government official (or a consumer)<br />

hoping for better broadband in your<br />

development or city, the news is<br />

mixed. A consolidated company, especially<br />

in an area where scant competition<br />

exists, has little incentive to<br />

negotiate.<br />

• If you’re a lawyer at the Antitrust<br />

Division of the Justice Department<br />

or on the staff of the communications<br />

subcommittee of the Senate<br />

Committee on Commerce, Science,<br />

and Transportation, you’re keeping<br />

a close eye on things and wondering<br />

whether the telecommunications<br />

industry is going to return to<br />

the “Wild West” days of the 1990s,<br />

when everyone seemed bent on acquiring<br />

everyone else.<br />

• If you are the late Harold Greene,<br />

the no-nonsense judge who presided<br />

over the AT&T divestiture case and<br />

all but insisted on the breakup of<br />

the company on the grounds that<br />

telecommunications is not a natural<br />

monopoly and that the best and<br />

most cost-efficient service could be<br />

provided by a disaggregated telephone<br />

business, you just might be<br />

watching, from your seat in Heaven,<br />

as the telecommunications industry<br />

reassembles itself and wondering if,<br />

in fact, you were wrong. BBP<br />

1-800-852-8662 • www.suttleonline.com<br />

March/april 2011 | www.broadbandproperties.com | BROADBAND PROPERTIES | 47


<strong>Broadband</strong> <strong>Properties</strong>’ list of independent<br />

telcos deploying or<br />

planning fiber to the premises<br />

has now grown to 576 – more than 12<br />

times the size of the first list the magazine<br />

compiled in 2005. That means<br />

about half the independent telcos in the<br />

United States now have at least some experience<br />

deploying fiber to the premises.<br />

inDepenDent telcoS<br />

FttH and Independent telcos<br />

Telcos are beginning to look beyond the triple play to new applications,<br />

such as meter reading and mobile backhaul.<br />

By Masha Zager ■ <strong>Broadband</strong> <strong>Properties</strong><br />

ABOut tHe lISt<br />

Since 2005, <strong>Broadband</strong> <strong>Properties</strong> has maintained a list of independent telephone companies that deploy fiber to the<br />

premises. We’ve published the list at least twice each year, and we also maintain it online at www.bbpmag.com/search.<br />

php to enable you to search, sort and download this information. The online list includes several other types of deployers<br />

in addition to independent telcos.<br />

Although we gather information from as many sources as we can, we know the list is not complete. To add to the<br />

list, fill in missing information or correct any errors, please contact masha@broadbandproperties.com.<br />

“I never want to dig up this town again,” said one<br />

independent telco general manager, explaining<br />

why he replaced deteriorated copper with fiber.<br />

FTTH has now become the default<br />

technology choice for telcos when they<br />

have to build new plant. Although not<br />

many have undertaken to replace their<br />

entire networks with fiber, telcos tend to<br />

choose future-proof fiber whenever they<br />

wire new subdivisions, replace deteriorated<br />

copper plant or overbuild other<br />

providers’ territories. “I never want to<br />

dig up this town again,” one general<br />

manager said, explaining that the fiber<br />

he was putting in the ground was likely<br />

to outlast his own career.<br />

Another reason for the growth of<br />

the list is the broadband stimulus pro-<br />

gram. The Rural Utilities Service (RUS)<br />

awarded $3.6 billion in broadband<br />

stimulus loans and grants, much of it<br />

for FTTH projects. Much of the RUS<br />

funding was awarded to independent<br />

telcos, largely because these companies<br />

are RUS’s traditional clients, and the<br />

agency was directed to give preference to<br />

companies it had worked with success-<br />

fully in the past. Many of these stimulus<br />

projects are now in progress.<br />

Additional drivers for independent<br />

telcos’ adoption of FTTH include<br />

• ongoing improvements in technology<br />

that have reduced the cost of<br />

deploying fiber<br />

• a tradition of commitment to local<br />

About the Author<br />

Masha Zager is the editor of <strong>Broadband</strong> <strong>Properties</strong>. You can reach her at masha@<br />

broadbandproperties.com.<br />

48 | BROADBAND PROPERTIES | www.broadbandproperties.com | March/april 2011<br />

economic development and quality<br />

of life<br />

• a desire to provide advanced services<br />

to both residential and business<br />

customers.<br />

Many, if not most, of the telcos on<br />

the list are in the midst of long-term fiber<br />

upgrades. After starting with trial<br />

deployments, they commit to building<br />

out fiber wherever they can make an economic<br />

case for it.<br />

In addition, early adopters of FTTH<br />

have continued to upgrade their fiber<br />

electronics. Though our list still shows<br />

some BPON technology, we suspect that<br />

most of it has been upgraded by now.<br />

By installing new electronics on existing<br />

networks, these telcos are demonstrating<br />

that FTTH is indeed future-proof.<br />

WHy BuIlD FIBer?<br />

Independents have told us they are<br />

building fiber networks because<br />

• their old copper plant was failing,<br />

and they didn’t want to replace it<br />

with more copper that would soon<br />

be obsolete


• they wanted to offer advanced services<br />

and decided that FTTH would<br />

allow them more options<br />

• their service areas were losing jobs<br />

and population, and they believed<br />

fiber would bring more economic<br />

opportunities<br />

• their service areas were growing rapidly,<br />

and new residents moving from<br />

metropolitan areas were attracted to<br />

fiber as an amenity<br />

• they determined that the capital cost<br />

of FTTH was comparable to that of<br />

copper, but fiber cost less to maintain<br />

and had a longer useful life<br />

• they saw opportunities to compete<br />

in areas where businesses and residents<br />

were seeking additional service<br />

choices, but incumbents were not<br />

upgrading their networks.<br />

Because independent telcos rarely<br />

compete with one another, they share<br />

experiences and pool information. As<br />

information spreads, one success gives<br />

rise to another – and over the last several<br />

years, with fiber deployment costs falling<br />

and the cost of copper rising, more<br />

and more independents have been encouraged<br />

to try out this technology.<br />

WHAt tHe nuMBerS SHOW<br />

1 Larger telcos are more likely to deploy<br />

FTTH only in greenfield developments;<br />

smaller telcos are more<br />

likely to overbuild their own or other<br />

telcos’ service areas with fiber.<br />

inDepenDent telcoS<br />

WhAt is An independent telcO?<br />

The companies that appear on this list are licensed providers of wireline voice services other than Verizon, AT&T and<br />

Qwest. They are regulated in the United States as ILECs (incumbent providers), CLECs (competitive providers) or both.<br />

The majority are rural providers, many of them cooperatives or small family-owned businesses that were set up 50<br />

or more years ago to offer telephone service in regions not covered by the Bell system. A smaller number came into<br />

existence after the Telecommunications Act of 1996, some specifically to build fiber-to-the-home networks in new<br />

housing developments and others to serve businesses or offer alternatives in underserved areas. Some cable operators<br />

also have CLEC certificates and are included on the list.<br />

Today, many non-telephone companies deliver voice services and are functionally equivalent to CLECs. Although<br />

the telco category is becoming less meaningful as a result, telcos still exist as a historical and legal category, and our<br />

definition is consistent with industry usage.<br />

As we went to press, the CenturyLink-Qwest merger had just been granted final approvals (see Consolidation in<br />

the Telecommunications Industry in this issue), so CenturyLink will not appear on this list in the future.<br />

To the extent possible, we have excluded from the list telcos whose only involvement with FTTH is to deliver services<br />

over fiber access networks that they do not own – for example, networks owned by municipalities or housing<br />

developers.<br />

Most of the largest telcos on our<br />

list – sometimes called Tier-2 telcos –<br />

including CenturyLink, Fairpoint,<br />

Frontier, TDS Telecom and Windstream,<br />

have greenfield-only fiber<br />

deployment policies. (There are occasional<br />

exceptions, such as TDS<br />

Telecom’s building of FTTH in<br />

response to municipal competition<br />

in Monticello, Minn. In addition,<br />

Frontier’s FTTH network, with<br />

500,000+ homes passed, was acquired<br />

from Verizon.) The large telcos<br />

that are overbuilding their own<br />

or others’ territories with fiber, such<br />

as SureWest and Cincinnati Bell,<br />

tend to be metropolitan rather than<br />

rural.<br />

In other words, most of the fiber-<br />

to-the-home upgrades outside metropolitan<br />

areas are being done by<br />

smaller, or Tier-3, telcos. Though<br />

some of these are pure CLECs, many<br />

are cooperatives and small family<br />

businesses that until recently never<br />

marketed their services proactively,<br />

let alone competed with other providers.<br />

When we speak with these<br />

companies, they consistently express<br />

surprise at the failure of their larger<br />

competitors to compete – and at how<br />

easy it is to cherry-pick profitable<br />

customers that larger companies are<br />

overlooking.<br />

2 Most independent telcos building fiber<br />

networks are incumbent providers<br />

or subsidiaries of incumbents.<br />

FTTH Network Builders by Type<br />

Pure CLECs<br />

14%<br />

ILECs and<br />

their CLEC<br />

subsidiaries<br />

86%<br />

About six out of seven independent telcos deploying FTTH are incumbents, though many are<br />

overbuilding nearby towns with fiber.<br />

March/april 2011 | www.broadbandproperties.com | BROADBAND PROPERTIES | 49


Six out of seven companies on<br />

the list are ILECs (incumbent carriers<br />

dating from before 1996) that<br />

are either replacing old copper plant<br />

with fiber, building fiber to new developments<br />

in their service areas or<br />

overbuilding towns near their service<br />

areas where they have name recognition<br />

– or some combination of the<br />

three. In most states, they must form<br />

CLEC subsidiaries in order to move<br />

outside their traditional service areas,<br />

but we still list them as ILECs<br />

even if their fiber-to-the-home networks<br />

are only in their CLEC areas.<br />

The remaining companies are<br />

pure CLECs (competitive carriers),<br />

many of which have no traditional<br />

geographic base. These companies<br />

seek out promising territories to overbuild<br />

with fiber. A few of them build<br />

hybrid fiber-coax networks in some<br />

areas and FTTH networks in others.<br />

The proportion of ILECs to<br />

CLECs has remained surprisingly<br />

constant over the years that we have<br />

tracked telco fiber builds, even as the<br />

number of companies on the list increased<br />

by a factor of 12.<br />

Many of the pure CLECs originally<br />

collaborated with housing<br />

developers to build networks in<br />

greenfield developments and masterplanned<br />

communities, but after the<br />

housing market peaked, some turned<br />

to overbuilding. A few, such as Com-<br />

Span USA and Hiawatha <strong>Broadband</strong>,<br />

adopted an overbuilding model from<br />

the start. Others focus on serving<br />

small and midsize businesses.<br />

The typical independent telco<br />

serves a few thousand customers in<br />

one or two rural counties; however,<br />

the companies on this list range<br />

from corporate giants to tiny cooperatives<br />

that serve a few hundred<br />

customers. Likewise, their fiber<br />

deployments (not counting Frontier’s<br />

FiOS acquisition) range from<br />

SureWest’s 150,000 homes passed to<br />

pilot projects with fewer than a hundred<br />

homes passed.<br />

3 Though the triple play of voice, data<br />

and video services is still standard,<br />

additional services are becoming<br />

more common.<br />

inDepenDent telcoS<br />

Services Delivered or Planned on FTTH Networks<br />

Voice, Data, Video<br />

57%<br />

Other<br />

1%<br />

Many independent telcos manage<br />

cable TV networks alongside<br />

their telephone networks. Deploying<br />

fiber to the home allows them to<br />

merge the two networks, reducing<br />

operating costs while adding highdefinition<br />

TV, DVR, video on demand<br />

and a wider selection of channels.<br />

Telcos that don’t own cable TV<br />

plant throughout their service areas<br />

are losing landlines to cable companies<br />

and must usually offer video to<br />

compete with cable. Though they<br />

have the option of reselling satellite<br />

TV, they often prefer to operate their<br />

own networks, and they consider<br />

FTTH when they cannot reach all<br />

their customers with DSL.<br />

Beyond the triple play, the most<br />

Unknown<br />

18%<br />

50 | BROADBAND PROPERTIES | www.broadbandproperties.com | March/april 2011<br />

Triple Play Plus<br />

Additional<br />

Services<br />

4%<br />

Voice, Data<br />

19%<br />

Voice, Data Plus<br />

Additional<br />

Services<br />

1%<br />

In residential areas, the triple play of voice, video and data continues to be the standard offering.<br />

GPON<br />

Active Ethernet<br />

Unknown/Undecided<br />

BPON<br />

EPON<br />

PON Unspecified<br />

RFoG<br />

7<br />

15<br />

FTTH Technology Used<br />

Note: Some telcos use multiple technologies.<br />

42<br />

36<br />

70<br />

144<br />

common residential services offered<br />

are security monitoring, gaming and<br />

home automation; business applications<br />

are also offered by telcos that<br />

have significant numbers of business<br />

customers.<br />

Two important new services for fiber<br />

networks are mobile backhaul and<br />

meter reading. In the last two years,<br />

as demand for mobile bandwidth has<br />

grown, fiber-based backhaul has become<br />

critical. FTTH equipment vendor<br />

Calix says hundreds of its telco<br />

customers now use FTTH technologies<br />

to serve wireless operators. A case<br />

study of an Alaskan telco is described<br />

in an article in this issue, Making the<br />

Most of a <strong>Fiber</strong> Network. Because<br />

deployments to cell towers rarely<br />

Passive optical networks are far more common than active networks, but active networks continue<br />

to gain in popularity. Many telcos deploy PON to residential customers and active Ethernet to<br />

business customers.<br />

Continued on Page 83<br />

392


Over the past decade, fiber optic cable, once used only for long-haul<br />

communications, has been extended all the way to end users’ premises.<br />

Today, fiber to the home (FTTH) is a mature, proven technology, and<br />

with costs that are comparable to and even below those of old copper<br />

technologies, it is certain to be the technology of choice for service<br />

providers moving forward.<br />

In the United States, FTTH is available to about one home in five. In<br />

countries such as Japan, Korea, Denmark and Sweden, the figure is closer<br />

to four out of five. Due to vast gains in available bandwidth, reliability and<br />

security – gains that spur economic growth and enable new services for<br />

telehealth, distance learning, cloud computing and more – these nations<br />

have committed to deploying fiber on a broad scale.<br />

In 2010 alone, fiber-fed home businesses sustained 700,000 jobs –<br />

mostly new jobs – in a poor U.S. economy. <strong>Fiber</strong> deployments stimulated<br />

investment and economic growth in communities across the country,<br />

and stimulus funding established the promise of further expansion in the<br />

coming years.<br />

The details are in this publication, which gives network builders, real<br />

estate developers and managers, and government officials an overview<br />

of the power of fiber optics and the benefits it delivers to communities. It<br />

makes the business and environmental case for fiber to the home, as well.<br />

For more information, please visit www.FTTHCouncil.org.<br />

We call fiber the Light Fantastic. When you’ve read this primer, you’ll<br />

see the light!<br />

Daniel O’Connell<br />

President<br />

FTTH Council North America<br />

2 | The Advantages of Optical Access | FTTH CounCil


Contents<br />

Reliability... Bandwidth... Affordability... Future-Proofing... Standards...<br />

Security... Economic Development... Sustainability... New <strong>Broadband</strong><br />

Content & Services... Higher Revenue...<br />

<strong>Fiber</strong> to the Home: Pathway to Ultra-<strong>Broadband</strong> . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4<br />

<strong>Fiber</strong> and Bandwidth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6<br />

Applications for FTTH Providers: Beyond The Triple Play . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9<br />

<strong>Fiber</strong>: The Light Fantastic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12<br />

Telehealth: The Time is Now . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14<br />

FTTH Aids Sustainability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15<br />

Builders, Real Estate Developers and FTTH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16<br />

Questions Real Estate Developers Ask About FTTH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18<br />

Beating the Recession with <strong>Fiber</strong>: Three Case Studies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21<br />

Focus on Municipal Priorities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24<br />

Key Questions Municipal Officials Ask . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24<br />

FTTH Success Stories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28<br />

Introducing 1 Gbps to the Home . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30<br />

Understanding <strong>Fiber</strong> Network Architectures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31<br />

FTTH Council Certification Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32<br />

This primer was originally written by Steven S. Ross and updated by him and by Masha Zager, both of the <strong>Broadband</strong> <strong>Properties</strong> staff. It summarizes research commissioned<br />

by the FTTH Council as well as independent reporting by the authors and by BBP contributing editor Joe Bousquin.<br />

Local Economic Impact of FTTH Noted by<br />

FTTH Providers<br />

Large business development<br />

Work from home/SOHO expansion<br />

Business efficiency<br />

Rural growth/agricultural efficiency<br />

Quality of life (services, home education…)<br />

Construction stimulus<br />

Residential growth<br />

8%<br />

6%<br />

5%<br />

3%<br />

3%<br />

FTTH providers notice significant economic impacts borne by fiber; 42 percent specifically cited expansions or establishment of large businesses.<br />

Source: RVA LLC.<br />

22%<br />

42%<br />

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%<br />

FTTH CounCil | The Advantages of Optical Access | 3


<strong>Fiber</strong> to the home:<br />

Pathway to Ultra-broadband<br />

<strong>Fiber</strong> to the home (FTTH) has become<br />

the leading technology for<br />

next-generation communications<br />

networks worldwide. On every<br />

continent, telecom providers are building<br />

FTTH networks to replace legacy<br />

copper networks that are running out<br />

of headroom to support the demand<br />

for communications services. Because<br />

governments view fiber as critical national<br />

infrastructure, many have developed<br />

national broadband plans to<br />

encourage the buildout of fiber.<br />

Already, fiber reaches at least 200<br />

million homes globally – a tenth of<br />

all the households in the world – and<br />

an estimated 62 million households<br />

subscribe to fiber-based services, including<br />

voice, video, data and more.<br />

In the United States, fiber reaches 20<br />

million homes; half of those now have<br />

direct fiber optic connections, as do<br />

17 million homes in Japan, more than<br />

12 million in Korea and 8 million more<br />

in Europe. These numbers continue<br />

to grow exponentially. China alone<br />

expects to have 100 million fiber subscribers<br />

by 2015.<br />

Providers and governments<br />

around the world all agree fiber to the<br />

home is the endgame for communications<br />

infrastructure. No alternative<br />

infrastructure is even a contender (al-<br />

4 | The Advantages of Optical Access | FTTH CounCil<br />

The number of Internet-connected devices in the home will grow from 2 billion today to 10 billion in<br />

2015, says Pyramid Research. Only FTTH can meet this demand for in-home bandwidth.<br />

though wireless networks are being<br />

integrated with FTTH – more on that<br />

later), and everyone agrees that fiber<br />

will meet the world’s needs for the<br />

foreseeable future. The only debates<br />

involve the speed of the transition.<br />

why <strong>Fiber</strong>?<br />

The reason for this striking degree of<br />

unanimity is simple: FTTH offers far<br />

more bandwidth, reliability, flexibility,<br />

security and longer economic life than<br />

alternative technologies, even though<br />

its price is comparable. It is also less expensive<br />

to operate and maintain than<br />

copper.<br />

Because of these advantages, FTTH<br />

can support many more communications<br />

services than legacy infrastructures,<br />

including newly emerging services<br />

such as health care and cloud<br />

computing. <strong>Fiber</strong>’s reliability and security<br />

are particularly critical for such<br />

new services as telehealth and tele-<br />

presence.<br />

FTTH also allows network operators<br />

to derive more revenues from today’s<br />

communications services. FTTH<br />

subscribers today often spend 30 to<br />

40 percent more per month than DSL<br />

subscribers – not because basic services<br />

are more expensive (they aren’t),<br />

but because more and better premium<br />

services are available.<br />

For example, multiple simultaneous<br />

HD channels are difficult to implement<br />

well over any medium but fiber;<br />

3D TV and high-definition video communications<br />

are even more challenging.<br />

At the end of 2010, Verizon, thanks<br />

to its all-fiber FiOS network, was within


<strong>Fiber</strong> duct being laid in Chennai, India.<br />

a few cents per month of the highest<br />

average monthly customer revenue of<br />

any large network provider on Earth.<br />

Because other media have inherently<br />

limited capacity, tweaking more<br />

bandwidth from them becomes increasingly<br />

difficult and expensive as<br />

time goes on. This isn’t true of optical<br />

fiber, whose capacity is effectively<br />

unlimited.<br />

<strong>Fiber</strong> can handle any bandwidth<br />

demand with ease. In fact, one bundle<br />

of fiber cable not much thicker than<br />

a pencil can carry all of the world’s<br />

current communications traffic. The<br />

technologies for transmitting data<br />

over fiber are well understood, and<br />

the upgrade path for the electronic<br />

components that send and receive<br />

signals has been defined for years into<br />

the future. If anything, increasing fiber<br />

bandwidth will become less expensive<br />

rather than more expensive.<br />

who’s bUilding Ftth?<br />

By our count, well over 700 network<br />

operators have already deployed FTTH<br />

in the United States. Even in a down<br />

economy, most developers put fiber<br />

into new properties and many are up-<br />

grading existing<br />

properties. Larger<br />

telcos are deploying<br />

fiber in cities<br />

and suburbs, and<br />

smaller telcos in<br />

rural areas. Cable<br />

providers use fiber<br />

to compete<br />

for lucrative commercial-services business.<br />

Even some small electric companies<br />

have extended the fiber networks<br />

they use to manage their own facilities<br />

to serve their customers as well.<br />

and municipal buildings. In 2010, when<br />

Google announced that it planned to<br />

build one or more community fiber<br />

networks, more than 1,100 local governments<br />

proposed their communities<br />

as suitable locations. (In March 2011,<br />

Google selected Kansas City, Kan., for<br />

its initial fiber deployment.)<br />

adding ValUe to<br />

ProPerties<br />

Access to utilities makes private property<br />

more valuable. A house is worth<br />

much more if it has access to a public<br />

Telepresence is one of the advanced applications that depends on a high-bandwidth, high-reliability<br />

network. In this photo, the people on the far side of the table are actually sitting in a remote office,<br />

but can interact with the local group as if they were physically present.<br />

Municipalities are attracted to<br />

FTTH because it positions their communities<br />

for tomorrow’s jobs and economic<br />

growth. Nearly 100 localities<br />

have built or are building fiber networks<br />

to serve residents or businesses;<br />

hundreds more have fiber to schools<br />

street, water and sewer services, public<br />

schools and other utilities than if it<br />

does not. In the same way, FTTH adds<br />

value to properties. <strong>Fiber</strong> connections<br />

make single-family homes easier to<br />

sell and multiple dwelling units easier<br />

to rent. Renters and buyers know they<br />

can get the most attractive services<br />

available on the market today – and<br />

that if an exciting new service is introduced<br />

in a few years, they’ll be prepared<br />

for that as well.<br />

This publication explores these issues,<br />

and more, in detail. It’s written in<br />

nontechnical language so you can understand<br />

the value of next-generation<br />

infrastructure – and what it means<br />

to you – without a degree in optical<br />

engineering.<br />

We want to communicate ...<br />

The Advantages of <strong>Fiber</strong> to the Home.<br />

FTTH CounCil | The Advantages of Optical Access | 5


<strong>Fiber</strong> and bandwidth<br />

Q: What is bandwidth?<br />

A: In a network, bandwidth (what<br />

engineers call bitrate) is the ability<br />

to carry information. The more<br />

bandwidth a network has, the<br />

more information it can carry in a<br />

given amount of time. Networks<br />

with high bandwidth also tend to<br />

be more reliable because fewer<br />

bottlenecks disturb the flow of<br />

information.<br />

Q: How much bandwidth –<br />

or information delivered by<br />

bandwidth – do we need?<br />

A: A standard-definition television<br />

signal requires a bandwidth of<br />

about 2 Mbps – two million bits (zeros<br />

and ones) per second. HDTV requires<br />

as little as 2.5 Mbps if the image<br />

is rather static – a person being<br />

interviewed, for instance. But fast<br />

action, such as in some sporting<br />

events, requires more – as much as<br />

8 Mbps, even with new compression<br />

technology such as MPEG-4.<br />

Now, full-frame 3D is hot. While it<br />

can be delivered at 2.5 to 3 Mbps,<br />

a high-quality experience requires<br />

closer to 5 Mbps. 3D immersive<br />

HDTV – a technology already being<br />

used in some academic and industrial<br />

settings – will require between<br />

50 and 300 Mbps.<br />

Q: What about data?<br />

A: Bandwidth requirements for many<br />

kinds of data are exploding. For<br />

example, the digital cameras that<br />

consumers buy can create larger<br />

and larger images. In health care,<br />

the medical images produced by<br />

equipment such as CT scanners are<br />

orders of magnitude larger than<br />

camera images – a hundred times<br />

larger, and more.<br />

The biggest growth in data transmission<br />

has been for video, and<br />

this trend is expected to continue<br />

at least for the rest of this decade.<br />

Video requires not only extra bandwidth<br />

but also extra reliability. The<br />

smallest delay in data transmission<br />

can result in distorted views.<br />

6 | The Advantages of Optical Access | FTTH CounCil<br />

Q: Can’t copper carry high<br />

bandwidth?<br />

A: Yes, copper can support high<br />

bandwidth, but only for a few hundred<br />

yards. The longer the signal<br />

travels on copper, the lower the<br />

bandwidth. Optical fiber is unique<br />

in that it can carry high-bandwidth<br />

signals over enormous distances.<br />

<strong>Fiber</strong> uses laser light to carry signals.<br />

Under some circumstances,<br />

a signal can travel 40 miles (60<br />

kilometers) without degrading<br />

enough to keep it from being received.<br />

Another difference is that<br />

fiber is better able to support upstream<br />

bandwidth – that is, from<br />

the user out to the network. High<br />

upstream bandwidth is important<br />

for video communication and for<br />

many business applications.<br />

Q: What exactly makes fiber<br />

“future proof”?<br />

A: The equipment necessary to send<br />

light signals keeps getting better.<br />

So equipping an existing fiber network<br />

with newer electronics and<br />

with lasers that pulse light faster, or<br />

lasers using different wavelengths<br />

of light, can vastly increase available<br />

bandwidth without changing<br />

the fiber itself. The new electronics<br />

are very cheap compared with<br />

the original cost of laying the fiber.<br />

Therefore, once fiber has been<br />

deployed, network operators can<br />

keep increasing bandwidth at very<br />

little cost.<br />

Q: How long has fiber optic<br />

technology been in use?<br />

A: <strong>Fiber</strong> optic cable has actually been<br />

used in communications networks<br />

for more than 30 years. <strong>Fiber</strong> first<br />

delivered a signal directly to an<br />

American home (in Hunter’s Creek,<br />

Fla.) more than 20 years ago. Before<br />

that, fiber was – and still is – relied<br />

upon to carry communications<br />

traffic from city to city or country<br />

to country. The first trans-Atlantic<br />

fiber cable was laid in 1988. Almost<br />

every country on earth has some fi-<br />

ber, delivering services reliably and<br />

inexpensively.<br />

Q: All providers seem to claim they<br />

have fiber networks. What’s<br />

different about fiber to the home?<br />

A: Don’t be fooled! It is true that most<br />

cable and DSL networks use fiber.<br />

In these networks, the fiber carries<br />

the signal close enough to a home<br />

so that copper can carry it the rest<br />

of the way. However, this approach<br />

requires expensive, difficult-tomaintain<br />

electronics at the point<br />

where the fiber meets the copper.<br />

The available bandwidth is far<br />

less than an all-fiber network. And<br />

these halfway approaches do not<br />

allow symmetrical bandwidth – existing<br />

cable and DSL systems can<br />

download much faster than they<br />

can upload information.<br />

Q: Isn’t that good enough?<br />

A: That depends on what you want to<br />

use your bandwidth for. If all you<br />

want is to send emails, download<br />

songs or share family photos, the<br />

bandwidth provided by today’s<br />

cable modems and DSL lines may<br />

be good enough. If you want to log<br />

on to the corporate LAN from home<br />

and work effectively, you’ll need<br />

more. And what about uploading a<br />

high-def video of the school play, or<br />

sitting down to dinner with family<br />

members a thousand miles away?<br />

Q: Why does it matter how close<br />

to the home fiber comes in DSL<br />

and cable systems?<br />

A: With copper cable, there is a<br />

marked relationship between distance<br />

and available bandwidth.<br />

For example, the latest commercial<br />

versions of DSL can carry a signal of<br />

more than 200 Mbps for about 750<br />

feet. Over a distance of a mile, DSL<br />

can deliver only about 30 Mbps.<br />

That’s the theoretical limit. In practice,<br />

the real bandwidth is less.<br />

Q: With cable and DSL, there’s often<br />

a difference between advertised


and actual bandwidth. Is that<br />

true for fiber?<br />

A: Cable, DSL and even wireless networks<br />

are usually more heavily<br />

oversubscribed than fiber – that is,<br />

providers promise users more than<br />

the total amount of available band-<br />

(2011)<br />

1+ GbPS FIber Per<br />

USer, AND GroWING<br />

Today, fiber’s bandwidth<br />

is orders of magnitude<br />

bigger than other<br />

technologies. As the new<br />

generation of 10 Gbps<br />

equipment is deployed,<br />

the fiber circle will move<br />

off the page.<br />

USer, AND GroWING<br />

1+ GbPS FIber Per<br />

(2011)<br />

Source: BBP LLC<br />

width because they know all users<br />

aren’t going full throttle most of<br />

the time. As a result, copper-based<br />

networks slow down during periods<br />

of heavy use – such as when<br />

teenagers come home from school.<br />

<strong>Fiber</strong> has enough bandwidth that<br />

VisUalizing <strong>Fiber</strong>-borne bandwidth<br />

Bandwidth<br />

Comparisons<br />

64 Kbps: Phone Line<br />

128 Kbps: ISDN<br />

1.5 Mbps for a T1 Line<br />

100 Mbps: DSL maximum per user<br />

with latest technology<br />

20 Mbps: Wireless maximum per<br />

user with latest technology<br />

160 Mbps: Cable maximum per user<br />

with latest technology<br />

providers can guarantee high<br />

speeds with little or no oversubscription.<br />

If a fiber network is designed<br />

properly, users will always<br />

get the speeds that are advertised.<br />

The Federal Communications Commission<br />

now insists that carriers deliver<br />

the bandwidth they advertise.<br />

Q: Is FTTH technology expensive?<br />

A: In new construction, fiber costs<br />

about the same as copper to build,<br />

and it costs much less to operate<br />

and maintain. Building fiber to<br />

the home is expensive only when<br />

compared with not building anything<br />

– that is, with adding new<br />

electronics to an existing copper<br />

network or building fiber only part<br />

of the way to the home. The problem<br />

is that these less-expensive<br />

1+ GbPS FIber Per<br />

USer, AND GroWING<br />

(2011)<br />

Only the<br />

Beginning<br />

In a few years, even<br />

1 Gbps will look small.<br />

Soon, most content will be 3D<br />

and ultra-high-definition.<br />

FTTH CounCil | The Advantages of Optical Access | 7<br />

USer, AND GroWING<br />

1+ GbPS FIber Per<br />

(2011)


solutions don’t always meet users’<br />

needs. In the last few years, the<br />

flood of video content has outrun<br />

the ability of older technologies to<br />

handle bandwidth demands. Providers<br />

are shutting off or slowing<br />

Increased bandwidth lets us do familiar things faster.<br />

Send an email. View a website. But its real value is that it<br />

lets us do entirely new things with our computers, cameras,<br />

televisions – with our network. Today, the network is<br />

often called the “cloud,” which is a way of saying, “I don’t<br />

even have to think about where data is stored or where<br />

processing is happening.”<br />

Things we talk about in everyday conversation today<br />

would have been bewildering a decade ago. In the past<br />

few years, we have seen such dazzling innovations as<br />

• Tablet computers for easy access to games, ebooks,<br />

TV programs, email, shopping, banking and an everexpanding<br />

suite of new “apps.”<br />

• Smartphones that aren’t just for mobility anymore<br />

but are increasingly used for personal media consumption<br />

in the home.<br />

• Internet-connected televisions, radios, set-top<br />

boxes, Blu-ray Disc players, cameras and picture<br />

frames that receive or deliver movies, TV and photos<br />

via the Web.<br />

• Voice over Internet Protocol telephones that direct<br />

incoming callers to any line and take messages in text<br />

and video as well as voice.<br />

• Social media that keeps people continuously in touch<br />

and up to date – who needs phone calls anymore?<br />

• Two-way video communication whose quality is<br />

good enough to bring the illusion of “being there”<br />

to teleconferencing. It’s called “telepresence.” Highdefinition<br />

video communication has even reached<br />

the home market; telecommuting workers can send<br />

telepresence robots in their offices to sit in for them<br />

at meetings while they watch from their home TVs.<br />

• Easy distribution of user-created video that lets<br />

grandparents see children, musicians develop audiences<br />

and manufacturers demonstrate new products.<br />

• Digital media lockers that let consumers store music,<br />

TV, videos and services in the cloud and access<br />

them from many devices.<br />

• Telehealth devices and applications that bring<br />

medical services to remote areas and to the homebound<br />

elderly.<br />

8 | The Advantages of Optical Access | FTTH CounCil<br />

down service or imposing prohibitive<br />

fees for customers who exceed<br />

monthly bandwidth caps. Customers<br />

don’t like these restrictions,<br />

and they don’t appreciate being<br />

called “bandwidth hogs” for using<br />

services they have paid for. In addition,<br />

it’s not clear that providers<br />

save money by failing to meet users’<br />

needs, because limiting bandwidth<br />

means limiting revenue potential<br />

as well.<br />

the ineVitability oF bandwidth growth<br />

YouTube appeared in February 2005 and quickly became<br />

one of the five largest users of bandwidth on earth<br />

and the largest single user of Internet bandwidth. The<br />

social networking platform Facebook, the world’s most<br />

visited site, has more than 600 million active users who<br />

share photos and videos, play games and use half a million<br />

other embedded applications.<br />

The least expensive netbooks today come with 160 GB<br />

hard drives, because users need the file space. And if they<br />

need the file space, they also need to transmit large files<br />

and back them up online. Users become annoyed when<br />

network speeds lag behind local connection speeds –<br />

and USB transfer rates have now reached 5 Gbps.<br />

Internet-connected TV sets and set-top boxes let<br />

viewers watch high-definition online video on the big<br />

screen as easily as they can watch video from the local<br />

cable or phone company. Users don’t have to “think Internet”<br />

to put Internet video on the TV. They just check out<br />

what’s available, using their TV remotes. Internet-capable<br />

TV models are today’s standard offering.<br />

New services let people access health care and take<br />

classes from their homes. With home automation, residents<br />

can take care of their homes while they’re away,<br />

using Internet- connected security cameras and remote<br />

energy monitoring devices.<br />

Telecommuting and home-based businesses are<br />

on the rise, too. In October 2010, market researcher Michael<br />

Render reported that new businesses created by<br />

fiber-connected residential users had pumped more<br />

than $40 billion into the economy in just the previous 12<br />

months, the largest source of new jobs in 2010. Owners<br />

and managers of multifamily communities are turning<br />

social rooms into fiber-connected business centers and<br />

concierge offices.<br />

We have every reason to believe that innovation will<br />

continue, that bandwidth needs will keep on growing –<br />

and that only fiber to the home, with its superior reliability<br />

and plentiful upstream capacity, will be able to keep<br />

delivering the bandwidth we need.


aPPliCations For Ftth<br />

ProViders: beyond the triple Play<br />

a<br />

decade ago, cable companies<br />

introduced the triple play of<br />

voice, video and data that has<br />

now become the standard telecom offering<br />

worldwide. But fiber’s greater<br />

bandwidth and reliability gives FTTH<br />

providers the option to think beyond<br />

the triple play and offer multiplay services<br />

tailored to the needs of particular<br />

communities.<br />

Fortunately, new broadband applications<br />

become available every day,<br />

and many of them create opportunities<br />

for use or resale by fiber providers.<br />

These new applications fall into several<br />

categories. Some help differentiate<br />

fiber-to-the-home communities;<br />

some generate additional revenue<br />

streams for providers or help retain<br />

customers; still others can be used by<br />

providers or property developers to<br />

manage their assets more efficiently.<br />

Many do all three.<br />

diFFerentiating<br />

a CommUnity<br />

<strong>Fiber</strong> has become the norm in new developments,<br />

especially in new masterplanned<br />

communities, according to<br />

market researcher Mike Render. In order<br />

to further differentiate their communities,<br />

developers are now seeking<br />

applications to leverage their fiber<br />

infrastructure.<br />

Telehealth gives residents instant<br />

access to medical specialists via<br />

videoconferencing from the home,<br />

the fitness center or the community<br />

room. The videoconferencing may<br />

be integrated with Internet-enabled<br />

diagnostic devices (blood pressure<br />

cuffs, respiration measurement, etc.),<br />

electronic medical records systems,<br />

online prescription services and online<br />

appointment scheduling. Telehealth<br />

helps keep older adults living<br />

independently longer, and it is a boon<br />

for members of the “sandwich generation,”<br />

who are responsible for caring<br />

for both their children and their elders.<br />

Social applications use the fiber<br />

infrastructure to build a sense of<br />

community. They range from social<br />

networking sites focused on the community,<br />

to intranet sites featuring local<br />

news and events, to Web-based<br />

or IPTV video channels broadcasting<br />

local athletic contests, artistic productions<br />

and political discussions.<br />

Because these offerings can be interactive,<br />

they easily trump conventional<br />

“public access” stations on cable.<br />

Home-automation and concierge<br />

services, such as Verizon<br />

Concierge, take advantage of the fiber<br />

network within a community to<br />

make residents’ lives comfortable and<br />

convenient. Cameras that recognize<br />

residents’ cars entering the community<br />

can alert parking attendants and<br />

security personnel and then turn on<br />

lights and heating or air conditioning<br />

at home. Residents can connect with<br />

Online face-to-face healthcare<br />

Very large HDD with super resolution<br />

One device for TV, Internet, & phone<br />

Advanced online shopping<br />

Two-way video calling<br />

Remote home and pet monitoring<br />

Advanced websites/full video<br />

Business video conferencing<br />

3D TV<br />

Advanced online college<br />

one click to community services or<br />

schedule a dry-cleaning pickup, pizza<br />

delivery or home repair. These applications<br />

can also help owners control<br />

energy use.<br />

Mobility is easier to accommodate<br />

with a robust fiber-to-the-home network.<br />

Using the backhaul afforded by<br />

FTTH, providers can offer Wi-Fi connections<br />

to residents in indoor and<br />

outdoor public spaces throughout a<br />

community. Residents can bring their<br />

laptops or tablets to the pool, check<br />

email from the laundry room or listen<br />

to Internet radios in the gym.<br />

generating new<br />

reVenUe streams<br />

Customers have become used to purchasing<br />

such over-the-top Internet<br />

Interest in Futuristic Services<br />

Current FTTH Users Over Age 55<br />

17%<br />

16%<br />

31%<br />

30%<br />

27%<br />

26%<br />

25%<br />

23%<br />

36%<br />

35%<br />

0% 5% 10% 15% 20% 25% 30% 35% 40%<br />

Older FTTH customers put online face-to-face health care above other video services, but one in six<br />

say they’d also use FTTH for online courses. Source: RVA LLC.<br />

Very large HDD with super resolution<br />

Business video conferencing<br />

Advanced websites/full video<br />

Remote home and pet monitoring<br />

Advanced online shopping<br />

Online face-to-face healthcare<br />

One device for TV, Internet, & phone<br />

Two-way video calling<br />

Advanced online college<br />

3D TV<br />

Interest in Futuristic Services<br />

Current FTTH Users Under Age 40<br />

33%<br />

52%<br />

52%<br />

50%<br />

49%<br />

47%<br />

47%<br />

46%<br />

42%<br />

41%<br />

0% 10% 20% 30% 40% 50% 60%<br />

Video applications are pacing broadband use by FTTH customers under age 40. Source: RVA LLC.<br />

FTTH CounCil | The Advantages of Optical Access | 9


services as Skype or Netflix, but often<br />

they’re happier to deal directly with<br />

network providers they know and trust.<br />

<strong>Broadband</strong> providers of all kinds now<br />

offer a variety of applications to their<br />

customers through Web portals or<br />

through set-top boxes, often at lower<br />

prices than the customers could obtain<br />

by purchasing these services directly.<br />

These applications reduce customer<br />

churn; they lower expenses by<br />

keeping more traffic in-network; and<br />

they create new revenue streams. Because<br />

fiber-to-the-home networks<br />

have virtually unlimited capacity and<br />

unparalleled reliability and remote<br />

service monitoring, fiber providers<br />

have a far wider choice of applications<br />

for resale.<br />

online storage allows users to<br />

store their data files on the Internet,<br />

access them from anywhere and share<br />

them with others. Indeed, the cloud<br />

computing revolution has moved applications<br />

from the desktop to the<br />

Web. Service providers are now supplying<br />

the types of services to business<br />

customers that until recently were provided<br />

by corporate IT departments.<br />

Home security, like many other<br />

technologies, is migrating from analog<br />

to digital. Digitally based home<br />

security allows residents to control<br />

settings, receive alerts and view their<br />

homes via the Internet or cell phone.<br />

Digital security systems also support a<br />

wider range of sensors – not only traditional<br />

motion detectors but cameras,<br />

10 | The Advantages of Optical Access | FTTH CounCil<br />

<strong>Fiber</strong>-connected cameras can be used for community<br />

security applications.<br />

water detectors, smoke detectors and<br />

many others. Because digital security<br />

uses wiring that is already installed for<br />

broadband, it is inexpensive to install<br />

and makes economic sense for renters<br />

as well as homeowners.<br />

over-the-Top Video may be offered<br />

as either an adjunct to or a substitute<br />

for a pay-TV offering, and it may be<br />

delivered either through a provider’s<br />

Web portal or via a specialized set-top<br />

box or a hybrid set-top box. The business<br />

models, technologies and even<br />

legal status of provider-delivered OTT<br />

video are evolving rapidly – a fact that<br />

demonstrates the enormous amount of<br />

interest in this application. If OTT video<br />

eventually displaces the traditional pay-<br />

TV model, fiber-to-the-home providers<br />

are well-positioned to benefit from this<br />

change because they can guarantee<br />

the quality of user experience.<br />

Videoconferencing or video chat<br />

is universally available through free or<br />

low-cost Web-based services, but it is<br />

cumbersome and the quality is often<br />

poor. <strong>Fiber</strong> to the home, with its high<br />

upstream bandwidth, presents opportunities<br />

for providers to make highquality<br />

videoconferencing avail able,<br />

Rural telco BEK brings local sports events to its video customers; this is the mobile studio.<br />

and several such services have been<br />

introduced in the past year.<br />

FTTH providers are generating<br />

new revenue streams not only from<br />

residential and business customers<br />

but also from advertisers, utilities and<br />

wireless providers.<br />

Targeted advertising sold to<br />

advertisers represents an important<br />

potential revenue stream. One mechanism<br />

is through IPTV, which lets providers<br />

insert ads based on nearly any<br />

criteria. IPTV ads can be sent to households<br />

with certain demographic criteria,<br />

or to households (or even individual<br />

TV sets) with certain viewing patterns.<br />

Another potential source of advertising<br />

dollars is t-commerce, in which<br />

television viewers click the remote on<br />

an ad – or even a product placement<br />

in a television show – to either see<br />

more information about the product<br />

or actually to order it.<br />

Automated meter reading is usually<br />

the first smart-grid application that<br />

utilities deploy because it is relatively<br />

straightforward to implement and has<br />

an immediate payback. Though most<br />

fiber deployers that have installed<br />

smart meters on FTTH networks are either<br />

public or cooperative electric utilities,<br />

a few telcos are installing and reading<br />

smart meters and charging utilities<br />

on a per-reading basis.<br />

Beyond automated meter reading,<br />

such smart-grid applications as demand-response<br />

programs, SCADA and<br />

outage investigation greatly reduce<br />

electric utilities’ operating costs. Smartgrid<br />

applications are major reasons<br />

that electric utilities across the country<br />

are now building fiber infrastructures.<br />

The federal government’s stimulus<br />

programs have subsidized smart-grid<br />

upgrades and coordinated FTTH with<br />

smart-grid initiatives.<br />

Mobile backhaul has become an<br />

enormous revenue opportunity for<br />

fiber deployers. The exploding demands<br />

for mobile bandwidth have<br />

made clear to wireless providers that<br />

they must upgrade the connections<br />

from their cell sites to the Internet


(traditional connections are copper<br />

T1 lines with 1.5 Mbps bandwidth).<br />

FTTH deployers are already beginning<br />

to run fiber to the busiest cell sites –<br />

about one cell site in five is now served<br />

by fiber. In addition, the next generation<br />

of wireless architecture will move<br />

all baseband processing from cell sites<br />

to the cloud; cell sites will have to be<br />

connected via fiber to hubs where<br />

processing takes place.<br />

ProPerty management<br />

<strong>Broadband</strong> enables property owners<br />

to control their properties and assets<br />

more efficiently than ever before. The<br />

addition of broadband – especially the<br />

high-capacity, high-reliability broadband<br />

that fiber enables – turns “smart”<br />

buildings into “genius” buildings,<br />

according to one expert. Internet-<br />

enabled sensors and applications automate<br />

work that was once done by<br />

maintenance crews – and get it done<br />

it more quickly and accurately. <strong>Broadband</strong><br />

applications also help own-<br />

Remote music lessons.<br />

Electric meter set up to transmit smart-grid information.<br />

ers communicate with tenants and<br />

employees.<br />

Guarding construction sites can<br />

be managed through IP-based video<br />

surveillance. Asset tagging, typically<br />

with inexpensive RFID, helps prevent<br />

theft or misplacement of equipment,<br />

and tags worn by employees help make<br />

sure people are where they’re authorized<br />

to be. Videoconferencing allows<br />

construction managers to make virtual<br />

site inspections more frequently than<br />

they can make physical inspections.<br />

online work order scheduling<br />

helps property managers be more responsive<br />

to their residents while reducing<br />

operating expenses. Residents can<br />

request repairs at any time – not just<br />

when the office is open or they can find<br />

the super – and management personnel<br />

can deal with problems that require<br />

personal attention rather than routine<br />

requests. Residents can be automatically<br />

notified when work is completed.<br />

energy management and water<br />

management can be broadband-enabled.<br />

Motion sensors,<br />

intelligent thermostats<br />

and automated ventilation<br />

equipment can<br />

keep public spaces and<br />

unoccupied units at appropriate<br />

temperatures;<br />

applications that monitor<br />

and analyze usage<br />

help property managers<br />

and residents find opportunities<br />

to shift loads<br />

to nonpeak times and reduce<br />

their overall usage.<br />

Join the FTTH Council<br />

Isn’t it time you enjoyed the benefits of<br />

FTTH Council membership? The Council offers<br />

several membership categories, with dues starting<br />

at only $395/year for organizations and as<br />

little as $50/year for individuals.<br />

We are:<br />

n Independent telecom providers from across<br />

North America that are future-proofing their<br />

networks by upgrading to FTTH.<br />

n Competitive broadband providers that are differentiating<br />

their offerings with all-fiber connectivity.<br />

n A wide variety of FTTH equipment manufacturers<br />

and other broadband solutions providers<br />

showcasing their latest products.<br />

n Engineering, outside-plant, consulting and<br />

construction firms that work with telecom service<br />

providers to design and deploy North America’s<br />

next-generation networks.<br />

n Municipalities and electric utilities that operate<br />

all-fiber networks as a way of enhancing<br />

prospects for local economic development.<br />

n Educational institutions, students and individuals<br />

interested in learning more about all-fiber<br />

networks and their role in communities’ economic<br />

growth and competitiveness.<br />

n Industry and professional groups whose<br />

missions are enhanced by the availability of<br />

ultra-broadband networks.<br />

Our areas of focus include:<br />

n Building a legislative and regulatory framework<br />

for advancing FTTH deployments.<br />

n Educating policymakers and the public about the<br />

benefits of FTTH.<br />

n Sharing information and best practices concerning:<br />

‑ Emerging optical access technologies and<br />

FTTH industry trends.<br />

‑ All-fiber network design, operations and<br />

optimization.<br />

‑ <strong>Fiber</strong>-to-the-home business planning and<br />

marketing strategies.<br />

‑ Smart-grid and green technology evolution.<br />

‑ High-bandwidth consumer applications,<br />

content and in-home networking.<br />

For more information, please consult the<br />

membership section of the FTTH Council website,<br />

www.ftthcouncil.org, or email<br />

secretariat@ftthcouncil.org.<br />

FTTH CounCil | The Advantages of Optical Access | 11


<strong>Fiber</strong>:<br />

the light FantastiC<br />

Unlike copper cable, which carries<br />

low-voltage electrical signals,<br />

fiber optic cable carries<br />

information by transmitting pulses of<br />

light. The pulses are turned on and off<br />

very, very quickly. Multiple streams of<br />

information are carried on the same fiber<br />

at the same time by using multiple<br />

wavelengths – colors – of light.<br />

The pulses of light are usually created<br />

by lasers. (Some short-range fiber<br />

systems use LEDs.) The equipment<br />

that transmits signals keeps getting<br />

faster and cheaper, so the same old<br />

fiber can be used to carry ever more<br />

information. New equipment is just<br />

slipped in.<br />

<strong>Fiber</strong> has many advantages over<br />

copper wire or coaxial cable, as it is<br />

easier to maintain and delivers far<br />

more bandwidth. Three of the biggest<br />

advantages are these:<br />

1Signals travel long distances<br />

inside fiber cable without<br />

degradation – 50 miles or<br />

more in some real-world<br />

networks and 65 miles or more in the<br />

laboratory. By contrast, bandwidth<br />

decreases in copper wire or coax as<br />

the distance traveled increases. Short<br />

lengths of coax, for instance – the<br />

lengths typically found in a small<br />

building – can carry 1 Gbps if the coax<br />

network is well designed. That’s 500<br />

times more bandwidth than typical<br />

broadband services using DSL over<br />

copper wire, and 200 times more than<br />

typical broadband over cable TV coax.<br />

But those speeds are impossible over<br />

longer distances.<br />

The closer fiber gets to a building,<br />

the shorter the copper loop and therefore<br />

the faster the service that can be<br />

made available to the building’s residents<br />

and businesses. <strong>Fiber</strong> all the way<br />

to the living unit can deliver virtually<br />

unlimited speeds.<br />

2<strong>Fiber</strong> cable is thin. Individual<br />

fibers can, in fact, be made<br />

thinner than a human hair.<br />

Thin fibers can be carried on<br />

a narrow ribbon or inside a microduct<br />

12 | The Advantages of Optical Access | FTTH CounCil<br />

of hollow plastic typically less than 1/8<br />

inch in diameter. One typical fiber cable<br />

configuration with about 200 super-<br />

thin strands is about the thickness of a<br />

standard coax cable.<br />

That fiber cable could theoretically<br />

carry enough bandwidth to handle all<br />

18<br />

16<br />

14<br />

12<br />

10<br />

8<br />

6<br />

4<br />

2<br />

0<br />

5<br />

4.5<br />

4<br />

3.5<br />

3<br />

2.5<br />

2<br />

1.5<br />

1<br />

0.5<br />

0<br />

FTTH<br />

Cable Modem<br />

DSL<br />

the information being sent on earth at<br />

any one time today. The bottom line:<br />

<strong>Fiber</strong> can be hidden easily on the surfaces<br />

of walls in old construction. It is<br />

also flexible and rugged. In 2007, many<br />

vendors introduced inexpensive fiber<br />

that is tough enough to be stapled to<br />

Comparative Bitrate in Mbps,<br />

Downloads<br />

2007 2008 2009 2010<br />

Comparative Bitrate in Mbps,<br />

Uploads<br />

2007 2008 2009 2010<br />

Even in today’s deployments, which often do not exploit the full potential of fiber, FTTH has a sizable,<br />

and growing, downstream bitrate advantage over cable and DSL. The advantage of fiber is<br />

even more apparent on the upstream side – on average, FTTH connections have more than three<br />

times the upstream speed of cable or DSL connections. Source: RVA LLC.<br />

(DSL and cable data for 2007–8 not available.)


Average Number of Times Modem<br />

Rebooting Necessary Per Month<br />

Wireless<br />

Cable Modem<br />

FTTN<br />

DSL<br />

FTTH<br />

walls by installers and flexible enough<br />

to be bent around sharp corners.<br />

Though such fiber had been available<br />

for years, in the past it had been difficult<br />

and expensive to manufacture.<br />

Optical fibers made of polymers (plastics)<br />

rather than glass are now starting<br />

to be deployed for indoor networks.<br />

These cables are easy to install and<br />

close to invisible.<br />

3Once installed, fiber is upgraded<br />

by changing the<br />

electronics that create and<br />

receive the light pulses, not<br />

by replacing the cable itself. <strong>Fiber</strong> cable<br />

deployed in the access network is<br />

considerably longer lived than copper.<br />

It has a recommended depreciation life<br />

of 20 to 25 years, according to consulting<br />

company Technology<br />

Futures Inc. in a study<br />

commissioned by several<br />

Tier 1 telephone companies.<br />

The actual physical<br />

life expectancy of fiber is<br />

even longer; its economic<br />

life is limited by the prospect<br />

of competition.<br />

4<strong>Fiber</strong> networks<br />

are far less<br />

expensive to<br />

maintain and<br />

operate than copper networks.<br />

The fiber is amazingly<br />

reliable. Nothing<br />

hurts it except a physical<br />

cut or the destruction of<br />

the building it is in. Passive<br />

optical networks,<br />

or PONs, are the most<br />

1.5<br />

2.5<br />

2.4<br />

0 1 2 3 4 5 6<br />

Another measure of FTTH reliability: Customers report only about 1.5 reboots necessary per month<br />

– better than twice the reliability of cable. Source: RVA LLC.<br />

3.4<br />

4.9<br />

common type of fiber network. They<br />

use a minimum of electronics. In fact,<br />

there are no electronics at all between<br />

the provider’s central office and users.<br />

This improves network reliability and<br />

cuts deployment costs. But optical<br />

networks that do require electronics<br />

in the field have some advantages as<br />

well, especially when a network is built<br />

to carry content from multiple providers<br />

on the same fiber. Either way, the<br />

amount of power needed to run a fiber<br />

network is far less than that needed to<br />

run a coax or other copper network.<br />

This aids reliability and contributes to<br />

sustainability as well.<br />

Very Satisfied with Specific Internet<br />

Aspects, FTTH Versus Cable Modem<br />

Provider’s customer service<br />

Consistency of speed<br />

Installation process<br />

<strong>Broadband</strong> speed<br />

Reliability – service uptime<br />

43%<br />

58%<br />

42%<br />

61%<br />

52%<br />

63%<br />

46%<br />

64%<br />

49%<br />

69%<br />

0% 10% 20% 30% 40% 50% 60% 70% 80%<br />

Telcos generally outperform cable operators on service, but telcos offering FTTH widen the gap even<br />

further. Source: RVA LLC.<br />

Most Important Advantages of FTTH<br />

As Reported by Customers<br />

Speed/ faster/ better Internet/ bandwidth<br />

Picture clarity/ video clarity<br />

Reliability/consistency/ no hassles<br />

Bundle of several services on one bill<br />

Cost<br />

Quality<br />

Fewer weather disruptions<br />

Number of channels/ entertainment choice<br />

Better customer service<br />

General positives - pleased to have it<br />

DVR<br />

Convenience<br />

Other<br />

Better than previous cable company<br />

Video-on-demand/ movie downloads<br />

No satellite dish<br />

Better technology/ up to date<br />

Lines are buried/ not overhead<br />

Easy installation<br />

Can run two computers at once<br />

20.2%<br />

15.8%<br />

10.7%<br />

9.8%<br />

5.8%<br />

5.8%<br />

5.4%<br />

5.2%<br />

3.0%<br />

2.7%<br />

2.5%<br />

2.3%<br />

1.4%<br />

1.1%<br />

1.0%<br />

0.8%<br />

0.6%<br />

0.5%<br />

0.5%<br />

44.8%<br />

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%<br />

Bandwidth and reliability were cited most often by customers as FTTH advantages. Source: RVA LLC<br />

FTTH CounCil | The Advantages of Optical Access | 13


telehealth:<br />

the time is now<br />

<strong>Fiber</strong>’s bandwidth, reliability,<br />

safety and security have made<br />

it the technology of choice for<br />

in-hospital networks, and health care<br />

providers increasingly depend on fiber<br />

for exchanging huge image files<br />

and even for remote consultations<br />

and surgery. Until recently, regulatory<br />

requirements have limited the opportunities<br />

for using broadband to substitute<br />

live-at-home options for costly<br />

nursing home care. A recent study in<br />

Philadelphia, however, suggests that<br />

these savings are too large to ignore.<br />

Moreover, the situation studied could<br />

be copied by many local network providers<br />

under current regulations.<br />

NewCourtland, a senior services<br />

provider in Philadelphia, operates the<br />

LIFE program, modeled on the Medicare/Medicaid<br />

Program of All-Inclusive<br />

Care for the Elderly (PACE) initiative.<br />

PACE serves individuals who are<br />

14 | The Advantages of Optical Access | FTTH CounCil<br />

hoUsing with teChnology<br />

saVes mediCal Costs<br />

Number of patients 33 in 26 housing units or rooms<br />

Annual technology cost $39,000<br />

Annual home care cost $249,600<br />

Total nursing home cost avoided $2,135,250<br />

Annual savings $1,846,650<br />

age 55 or older, certified by their state<br />

to need nursing home care, able to live<br />

safely in the community at the time of<br />

enrollment and in a PACE service area.<br />

A total of 75 providers in 29 states have<br />

received Medicare and Medicaid waivers<br />

to operate PACE programs.<br />

Although all PACE participants are<br />

certified to need nursing home care,<br />

the program keeps 93 percent of participants<br />

living safely in the community.<br />

PACE providers deliver all needed<br />

medical and supportive services, including<br />

adult day care, medical care,<br />

drugs, social services, medical specialists,<br />

and hospital and nursing home<br />

care when they become necessary.<br />

By employing remote monitoring<br />

technology, NewCourtland enabled<br />

33 residents to move from traditional<br />

nursing home care, realizing an annual<br />

savings of more than $1.8 million. Essentially,<br />

the technology helped substitute<br />

a $125 per month technology<br />

Become a CFHP!<br />

Certified <strong>Fiber</strong> to the Home Professional Program<br />

The rapid growth in FTTH is creating significant demand for technical staff<br />

trained in FTTH technology and installation techniques. Many service providers<br />

are struggling to find enough trained staff. In response to this need, the FTTH<br />

Council has embarked on a training and certification program in cooperation<br />

with professional training organizations, educational institutions and other<br />

third-party training programs offered by major vendors and service providers.<br />

This program benefits the fiber industry and develops in-demand job skills<br />

for people dislocated during the current recession.<br />

Certification as a CFHP indicates a professional level of technical competence<br />

in fiber-to-the-home technologies. Certification requires demonstrating<br />

knowledge of and familiarity with FTTH architecture, network design,<br />

deployment technology and operational skills, not a specific vendor’s products.<br />

Candidates for CFHP certification include management and supervisory<br />

staff, technical support managers and administrators, design specialists,<br />

telephony and network engineers and administrators, and advanced network<br />

engineers and administrators. Individuals participating in or graduating from<br />

community and technical college programs in telecommunications can also be<br />

candidates even if they have little or no experience in telecommunications.<br />

The Council recommends participating in a training course before taking the<br />

certification exam. The current CFHP course consists of two days of classroom<br />

instruction and is structured to provide competence in overall FTTH theory,<br />

terminology, topology, equipment and system cost estimation.<br />

CFHP COURSE DATES for 2011<br />

Dallas, TX (at the <strong>Broadband</strong> Summit) • April 28 - 29, 2011<br />

Spartanburg, SC • June 1 - 2, 2011<br />

St. Louis, MO • June 9 - 10, 2011<br />

Seattle, WA • July 6 - 7, 2011<br />

Minneapolis, MN • September 7 - 8, 2011<br />

Orlando, FL (at the FTTH Conference) • September 26 - 27, 2011<br />

Austin, TX • December 8 - 9, 2011<br />

The first two-day CFHP training course has been developed by<br />

The Light Brigade with assistance from FTTH Council member companies<br />

and organizations. For more information, go to www.lightbrigade.com.<br />

After completing the course, candidates can take the online examination<br />

to confirm certification on the FTTH Council’s website. Those who successfully<br />

demonstrate knowledge of the course matter through this online examination<br />

by achieving a passing percentage of 80 percent or higher will receive the CFHP<br />

designation and a certification diploma valid for three years. The CFHP exam<br />

and certification fee is $150 for the three-year period. After that time, another<br />

exam will be required to maintain certification. For further information, please<br />

contact cfhpinfo@ftthcouncil.org.


cost per person for $225 per day in<br />

nursing home costs, starting in 2008.<br />

Seven of the patients were in a group<br />

home, and 26 lived separately.<br />

Instead of staffing the patients’<br />

homes with live-in help, NewCourtland<br />

installed a Healthsense eNeighbor<br />

system that includes sensors<br />

placed around the home, biometric<br />

devices as appropriate, medication<br />

dispensing, and a check-in button in<br />

each person’s home. A problem or unwarranted<br />

change brings a call from<br />

the monitoring center and, if necessary,<br />

a response from nearby staff. In<br />

a group home, there is one caregiver,<br />

supplemented with regular extra support<br />

mornings and evenings.<br />

“Keeping even one person out of<br />

Ftth aids<br />

sUstainability<br />

For service providers concerned<br />

about the impact of<br />

their networks on the environment,<br />

there’s good news about<br />

fiber. The environmental impact<br />

of FTTH is more positive than that<br />

of traditional copper networks,<br />

according to a Pricewaterhouse-<br />

Coopers study commissioned by the<br />

FTTH Council and released in October<br />

2008.<br />

Even with conservative assumptions<br />

about take rates, the greenhouse<br />

gases produced in manufacturing<br />

equipment and deploying networks<br />

are far lower for fiber than for copper<br />

networks and are outweighed in<br />

about five years by the savings from<br />

increased telecommuting alone. Telecommuting<br />

saves more than triple the<br />

amount of greenhouse gases released<br />

by powering the network.<br />

That’s an annual carbon-reduction<br />

dividend of close to 20 percent. Other<br />

environmental impacts are recouped<br />

with fiber in time periods ranging<br />

“Keeping even one person out of the hospital can<br />

pay for all systems for a PACE program for a year.<br />

The individuals we helped were motivated to leave<br />

a nursing home and move into the community,<br />

making an extra effort to participate in rehab.”<br />

the hospital can pay for all systems for<br />

a PACE program for a year,” said Jim<br />

Reilly, Director of Courtland Health<br />

Technology. “And more important, the<br />

individuals we helped were motivated<br />

to leave a nursing home and move<br />

into the community, making the extra<br />

effort to participate in rehab.”<br />

from one to six years, according to the<br />

report, which examined an “average”<br />

American FTTH deployment. The impact<br />

of any actual network would be<br />

slightly different from the typical case<br />

that was studied.<br />

Earlier studies have shown smaller<br />

annual savings, but almost all studies<br />

show a positive impact. Savings on<br />

gasoline (both for commutes avoided<br />

and for commuters who now enjoy<br />

less congestion on the highways) are<br />

partially offset by extra electricity use<br />

at home and by the power used to run<br />

the networks.<br />

Savings are likely to increase in<br />

the future as the uses of broadband<br />

networks expand. For example, PricewaterhouseCoopers<br />

did not consider<br />

other energy-saving applications,<br />

such as:<br />

• Telepresence, which is beginning<br />

to replace a significant amount of<br />

business travel;<br />

• Cloud computing, which enables<br />

Inside the patient’s living unit, all<br />

the equipment is connected by Wi-Fi<br />

to a network gateway. <strong>Fiber</strong> providers,<br />

whose networks rarely suffer outages<br />

that require on-premises gateway resets,<br />

have a huge advantage over DSL<br />

or cable providers in supporting programs<br />

like this one.<br />

data centers to be located near<br />

sources of renewable energy;<br />

• Smart-grid applications, which<br />

make electricity generation and<br />

distribution far more efficient; or<br />

• Distance learning, which reduces<br />

travel for educational purposes.<br />

About three-quarters of greenhouse<br />

gas emissions in the network life<br />

cycle come from the manufacture of<br />

active network equipment, Pricewaterhouse<br />

Coopers found. The researchers<br />

also examined how FTTH deployment<br />

affected such environmental issues as<br />

resource depletion, air acidification,<br />

algae growth in the oceans and the<br />

release of toxins into the environment.<br />

By every measure, FTTH had a beneficial<br />

environmental impact. A more<br />

complete presentation of the report’s<br />

results can be found at http://www.<br />

ftthcouncil.org/en/knowledge-center/<br />

documents-of-interest-to/ftth-equipment-vendor/environmental-benefits-of-ftth-deplo.<br />

FTTH CounCil | The Advantages of Optical Access | 15


Uilders, real estate<br />

deVeloPers and Ftth<br />

Virtually all large developers<br />

of single-family homes and<br />

many developers of multifamily<br />

communities add FTTH to new<br />

properties. Many are working on retrofitting<br />

older properties as well. Retrofit<br />

work has expanded as new-home<br />

sales have fallen in the recession.<br />

Before the housing boom ended,<br />

Michael Render of RVA LLC estimated,<br />

on the basis of surveying home buyers<br />

and developers, that FTTH added about<br />

$5,000 to the price of a home. The size<br />

of the increase is less certain now, but it<br />

is clear that FTTH homes sell faster.<br />

By mid-2006, FTTH was economically<br />

viable in new developments with<br />

as few as 80 MDU living units or 100<br />

single-family homes. That number has<br />

21,000,000<br />

16,000,000<br />

11,000,000<br />

6,000,000<br />

1,000,000<br />

-4,000,000<br />

19,400<br />

Developer With<br />

Competitive Overbuilder<br />

Incumbent Rural<br />

Telephone Company<br />

Competitive Overbuilder<br />

(Rural or Suburban)<br />

Municipality or Public Utility<br />

District Acting as Retail Provider<br />

Competitive<br />

Overbuilder (Urban)<br />

Regional Bell Operating<br />

Company (within MSA)<br />

Municipality or Public Utility<br />

District Acting as Wholesaler<br />

35,700 110,000<br />

72,100 180,300 189,000<br />

16 | The Advantages of Optical Access | FTTH CounCil<br />

continued to fall due to improvements<br />

in deployment technology. As fiber<br />

and fiber deployment costs have fallen<br />

FTTH Homes Passed, March 2011<br />

(Cumulative, North America)<br />

970,000 1,619,500<br />

6,099,000<br />

3,625,000 4,089,000<br />

2,696,846<br />

Major Categories of <strong>Fiber</strong>-to-the-Home Deployers<br />

And Take Rates, Winter 2010<br />

25.0%<br />

32.0%<br />

30.0%<br />

44.0%<br />

42.0%<br />

8,003,000<br />

11,763,000<br />

58.0%<br />

9,552,300<br />

85.5%<br />

Source: RVA LLC<br />

18,249,900<br />

17,227,000<br />

15,170,900<br />

13,825,000<br />

and copper costs have increased, fiber<br />

has achieved cost parity with copper<br />

in most new construction.<br />

20,914,476<br />

19,966,200<br />

Sep-01 Mar-02 Sep-02 Mar-03 Sep-03 Mar-04 Sep-04 Mar-05 Sep-05 Mar-06 Sep-06 Mar-07 Sep-07 Mar-08 Sep-08 Mar-09 Sep-09 Mar-10 Sep-10 Mar-11<br />

Source: RVA LLC<br />

For single-family homes,<br />

customer-premises equipment<br />

is typically located outdoors.<br />

Source: RVA LLC<br />

FTTH is now available<br />

to almost one out of<br />

five American homes.<br />

In the six months between<br />

September<br />

2010 and March 2011,<br />

an additional 948,000<br />

homes were passed<br />

by fiber despite the<br />

recession and the<br />

worst winter weather<br />

in a decade. That’s<br />

below the previous<br />

6 months but in line<br />

with the same period<br />

a year earlier.


There is a wide range<br />

of devices for placing<br />

fiber underground.<br />

7,500,000<br />

7,000,000<br />

6,500,000<br />

6,000,000<br />

5,500,000<br />

5,000,000<br />

4,500,000<br />

4,000,000<br />

3,500,000<br />

3,000,000<br />

2,500,000<br />

2,000,000<br />

1,500,000<br />

1,000,000<br />

500,000<br />

-<br />

5,500<br />

10,350<br />

22,500<br />

38,000<br />

20,000,000<br />

18,000,000<br />

19,400<br />

35,700<br />

72,100<br />

110,000<br />

FTTH Homes Marketed, March 2011<br />

(Cumulative, North America)<br />

180,300<br />

189,000<br />

413,221<br />

16,992,600<br />

18,167,300<br />

19,344,791<br />

16,000,000<br />

14,000,000<br />

13,875,600<br />

16,048,500<br />

12,000,000<br />

12,369,000<br />

10,000,000<br />

10,082,065<br />

8,000,000<br />

7,996,400<br />

6,643,000<br />

6,000,000<br />

5,079,999<br />

4,000,000<br />

3,218,600<br />

2,000,000<br />

1,754,300<br />

0<br />

829,700<br />

Sep-01 Mar-02Sep-02 Mar-03Sep-03 Mar-04Sep-04 Mar-05Sep-05 Mar-06Sep-06 Mar-07Sep-07 Mar-08Sep-08 Mar-09Sep-09 Mar-10Sep-10 Mar-11<br />

Source: RVA LLC<br />

The number of homes marketed for FTTH rose by almost 1.2 million from September 2010 to March 2011, a gain slightly<br />

above the previous six months and well above the year-earlier period. The latest six-month increase was far below the<br />

2.2 million record logged for March 2009 to September 2009, but it shows a clear turnaround.<br />

FTTH Homes Connected, March 2011<br />

(Cumulative, North America)<br />

64,700<br />

78,000<br />

146,500<br />

213,000<br />

312,700<br />

548,000<br />

1,478,597<br />

1,011,000<br />

671,000<br />

3,760,000<br />

2,142,000<br />

2,912,500<br />

6,452,300<br />

5,804,800<br />

5,275,000<br />

4,422,000<br />

7,094,800<br />

Sep-01 Mar-02 Sep-02 Mar-03 Sep-03 Mar-04 Sep-04 Mar-05 Sep-05 Mar-06 Sep-06 Mar-07 Sep-07 Mar-08 Sep-08 Mar-09 Sep-09 Mar-10 Sep-10 Mar-11<br />

Source: RVA LLC<br />

FTTH connections are rising. The number of homes connected rose by 647,500 from September 2010 to March 2011, faster than in<br />

the same period a year ago, while the ratio of homes connected to homes passed remained steady at a record 32 percent, up from<br />

29 percent two years ago. The number of new connections, 647,500, is higher than the total of 529,800 a year earlier but well below<br />

the record 853,000 of March 2009 to September 2009.<br />

Percent of US Households Passed and Connected to FTTH,<br />

2006 - 2011 (RVA LLC data)<br />

20%<br />

18%<br />

16%<br />

Passed<br />

14%<br />

12%<br />

Connected<br />

10%<br />

8.1%<br />

8%<br />

6.8%<br />

6%<br />

3.5%<br />

4%<br />

5.3%<br />

2%<br />

0%<br />

0.6% 0.9% 1.3%<br />

1.8%<br />

9.9%<br />

2.5%<br />

11.9%<br />

Mar-06 Sep-06 Mar-07 Sep-07 Mar-08 Sep-08 Mar-09 Sep-09 Mar-10 Aug-10 Feb-11<br />

More than 18 percent of all homes in the U.S. were passed by fiber by March 2011, making FTTH technology a major player in<br />

broadband and video services. More than 6 percent of all U.S. households were actually connected to FTTH.<br />

3.2%<br />

13.0%<br />

3.8%<br />

15.1%<br />

4.6%<br />

15.7%<br />

17.3%<br />

18.2%<br />

FTTH CounCil | The Advantages of Optical Access | 17<br />

5.0%<br />

5.6%<br />

6.2%


QUestions real estate<br />

deVeloPers ask aboUt Ftth<br />

Q: How can I justify adding to the<br />

price of a home in a weak market?<br />

A: The data are clear: Homes sell for<br />

higher prices when they are wired<br />

for high bandwidth and provide<br />

access to fiber. What’s more, FTTH<br />

homes sell faster than non-FTTH<br />

homes in the same market. In good<br />

times, this may translate into a<br />

greater profit, but it’s even more<br />

important in bad times. If few<br />

homes are being sold, you can bet<br />

that homes with high-bandwidth<br />

amenities will sell faster. This is<br />

equally true for rental properties:<br />

Developers of multiple-dwelling<br />

unit communities say their new<br />

buildings lease up faster if they can<br />

advertise them as fiber-connected.<br />

Q: Do I need to hire an engineering<br />

firm to design the installation?<br />

A: <strong>Fiber</strong> does need to be engineered<br />

in large apartment complexes –<br />

that’s true for coax, too. But smaller<br />

installations, as with smaller corporate<br />

LANs, do not need that kind of<br />

sophistication to work well. Greater<br />

standardization, clever new systems<br />

from equipment vendors,<br />

fiber that can be stapled and bent<br />

tightly around corners, the growth<br />

of distributor-supplied design help<br />

<strong>Fiber</strong> can now be bent tightly around corners.<br />

All customers have FTTH<br />

Very likely<br />

Somewhat likely<br />

Somewhat unlikely<br />

Very unlikely<br />

18 | The Advantages of Optical Access | FTTH CounCil<br />

Likelihood of Adding FTTH Lines,<br />

Current Non-RBOC FTTH Providers<br />

2%<br />

4%<br />

9%<br />

15%<br />

and an expanding corps of qualified<br />

technicians have made lessformal<br />

design regimes feasible in<br />

the last few years.<br />

Q: Do I have to worry about other<br />

labor on my construction site<br />

damaging the fiber cable?<br />

A: Optical fiber is very, very thin –<br />

thinner than a human hair. But<br />

fiber vendors have developed<br />

many techniques to protect the<br />

fibers from harm. Cable can be armored<br />

to ward off cuts. Contractors<br />

can route inexpensive microduct<br />

– hollow<br />

plastic tubes<br />

typically threeeighths<br />

of an<br />

inch in diam-<br />

70%<br />

0% 10% 20% 30% 40% 50% 60% 70% 80%<br />

Source: RVA LLC<br />

eter – through walls before the<br />

walls are closed in with drywall or<br />

other materials. The microducts<br />

are easily repairable. After everything<br />

else is done, thin fiber can<br />

be “blown” through the microduct<br />

for hundreds of feet. New fiber can<br />

be bent almost like copper. Some<br />

vendors offer fiber in thin adhesive<br />

tape that can be rolled onto walls.<br />

Q: Do any building codes pertain to<br />

fiber? The stuff seems inert.<br />

A: Yes, all the regular fire and lifesafety<br />

issues apply. For instance,<br />

just as copper with PVC sheathing<br />

Thinner, more bend-tolerant fiber also allows more compact fittings,<br />

like this box. That makes installation easier in older structures.


<strong>Fiber</strong> networks are easy to test; the testing<br />

device often pinpoints the exact location of a problem.<br />

would be considered a life-safety hazard because of the<br />

combustion products released when it burns, so would<br />

various plastics used in fiber that is meant for outside<br />

installation. Indoors, look for Low Smoke Zero Halogen<br />

(LSZH) cables. If you are using thin plastic microduct that<br />

fiber can later be blown through, it should be labeled<br />

Halogen-Free Flame Retardant. You use a simple junction<br />

box to change from “outside” to “inside” wiring, just<br />

as you might with electrical cables.<br />

Of course, you should check with your local building<br />

code inspector. Aside from fire issues, codes may govern<br />

where fiber optical network terminals (ONTs – the boxes<br />

that convert pulses of light from the fiber into electrical<br />

signals for the computer or TV) may be placed on the outside<br />

walls or in common areas. A few municipalities specify<br />

where in the home the network connections should<br />

be placed.<br />

Q: Where should we put users’ network connections,<br />

assuming there is no specific building code or<br />

guidance document covering that subject?<br />

A: You should expect users to desire broadband connections<br />

in virtually any room in the house – bedrooms,<br />

office-dens, the kitchen. That’s because Internet connections<br />

these days accommodate telephones, televisions,<br />

set-top boxes, digital picture frames, security sensors, fire<br />

and smoke monitors and, of course, computers. As the<br />

“Internet of things” develops, more and more appliances<br />

will be Internet-enabled.<br />

Because portable consumer electronics devices, such<br />

as smartphones and tablets, in addition to appliances, increasingly<br />

communicate with the Internet via Wi-Fi (appliance<br />

manufacturers have now adopted a standard for<br />

building Wi-Fi into major appliances), you will also need<br />

a wireless gateway. Such gateways are offered by all vendors<br />

as standard-issue, to be used on the home side of<br />

fiber network deployments.<br />

ComPonents oF a<br />

<strong>Fiber</strong>-to-the-home network<br />

Most of the devices in FTTH networks convert electrical<br />

signals that travel along wires to pulses of light that<br />

travel on fiber, and back again. Let’s start at the beginning<br />

of a fiber network.<br />

olt stands For<br />

oPtiCal line terminal.<br />

The OLT puts the pulses on the fiber in the first place.<br />

Because most of them are located in telephone exchanges<br />

and other network central offices, residents<br />

and property owners rarely see them.<br />

onts are oPtiCal<br />

network terminals.<br />

These are the devices at the consumer end that turn<br />

light pulses back into electrical signals. They are sometimes<br />

called ONUs, for optical network units. In networks<br />

built by cable companies they may be called<br />

micronodes. Customer devices, such as computers,<br />

usually expect Ethernet – a standard networking technology.<br />

Your computers and home wireless system use<br />

Ethernet and probably have Ethernet connectors built<br />

in. A typical ONT turns the light pulses into Ethernet<br />

signals.<br />

In the United States, ONTs are typically placed in<br />

cigar-box sized enclosures on the outside walls of<br />

houses or apartments. But they can be made smaller<br />

than a deck of cards and can be placed inside customer<br />

premises as well.<br />

<strong>Fiber</strong> ConneCtiVity<br />

You’ll also hear about the point of presence, or POP.<br />

That’s the point at which the signals from multiple customers<br />

join the rest of the extended network.<br />

Pedestals and larger fiber distribution hubs are enclosures.<br />

They can hold beam splitters that take the<br />

signal from a single fiber and divide it (typically between<br />

8:1 and 32:1 but as much as 128:1) among fibers<br />

that go to individual dwelling units.<br />

Pedestals and hubs can be below ground, above<br />

ground (they often look like short posts or squat, airconditioner-size<br />

boxes) or attached to buildings. Connections<br />

and splits can also be made in boxes that are<br />

hung under roof eaves, in attics or basements, on telephone<br />

poles, or on what look like power lines or phone<br />

lines. For best reliability, many contractors bring two<br />

fibers into each dwelling unit from the pedestal. The fiber<br />

leading from a hub or pedestal to a user’s premises<br />

is called the drop cable.<br />

FTTH CounCil | The Advantages of Optical Access | 19


Q: In single-family homes, I often<br />

see ONT boxes hung on the<br />

outside walls. Can they also be<br />

placed indoors?<br />

A: Yes. In harsh climates, where heat<br />

or heavy snow could affect the outside<br />

installation, you will probably<br />

want to put ONTs indoors. Outdoor<br />

ONT models are sometimes placed<br />

in garages or utility rooms; you can<br />

also buy small, portable indoor<br />

models that are more like cable or<br />

DSL modems, and connect them<br />

20 | The Advantages of Optical Access | FTTH CounCil<br />

with tough, flexible fiber that can<br />

be laid anywhere. Indoor ONTs,<br />

Pathways for structured wiring can<br />

be created before walls are finished.<br />

Modular ONT can be customer-installed.<br />

which are popular with apartment<br />

dwellers, can be designed to be<br />

user-installed.<br />

Q: Why do ONTs require backup batteries?<br />

A: Optical fiber cannot conduct electricity.<br />

Thus, to keep a network connection<br />

running during a power<br />

outage, you need a battery at the<br />

user premises or a fiber cable that<br />

includes a thin copper conductor<br />

connected to an off-site battery.<br />

This requirement may change as<br />

cellular phones replace landlines<br />

– a change that has already taken<br />

place in most of Europe. In North<br />

America, where most customers<br />

still have landlines, many standard<br />

designs are available for in-wall,<br />

between-stud boxes that hold the<br />

battery, ONT and fiber connections.<br />

Q: Does every dwelling unit or<br />

office need its own ONT located<br />

at the unit?<br />

A: No. Separate ONTs for each unit in<br />

a multiple-dwelling-unit building<br />

can be located centrally, often in<br />

a basement or an equipment cabinet.<br />

There are also ONTs designed<br />

to serve multiple units, typically 4<br />

or 8. This flexibility is made possible<br />

by new, smaller, low-power<br />

circuitry and by the fact that some<br />

ONTs can deliver 1 Gbps or more<br />

– enough bandwidth to share<br />

among multiple customers.<br />

Q: Is lightning a problem with fiber?<br />

A: No. In fact, because fiber does<br />

not conduct electricity, lightning<br />

strikes do not affect fiber at all.


eating the reCession<br />

with <strong>Fiber</strong>: three Case stUdies<br />

mdU in lexington, ky<br />

When Ball Homes of Lexington, Ky.,<br />

started building Forty 57, a 360-unit<br />

luxury apartment community just<br />

southeast of downtown Lexington<br />

and the University of Kentucky, it<br />

needed an edge for today and the future.<br />

With the first units coming online<br />

in May 2009, the developer was not<br />

only leasing a greenfield development<br />

in the midst of the Great Recession but<br />

also offering a higher-end product for<br />

a sophisticated demographic at a time<br />

when doubling and tripling up had<br />

suddenly come back into vogue.<br />

To add value to its offering and<br />

ensure that the community stayed<br />

on the cutting edge of technology<br />

for the foreseeable future, Ball Homes<br />

partnered with Little Rock, Ark.-based<br />

Windstream Communications. After<br />

negotiating a bulk subscription deal<br />

for residents, Windstream deployed a<br />

GPON fiber-to-the-unit network at the<br />

community to light up a triple-play offering<br />

of voice, video and data, including<br />

dedicated 911 connectivity. Now,<br />

for $89 a month, residents can enjoy<br />

a take-if-you-want base programming<br />

package that includes 12 Mbps data<br />

speeds; 60 channels of DISH Network<br />

programming, including HBO; and in-<br />

coming terrestrial phone service plus<br />

911 over traditional phone lines. It is<br />

the first fiber-to-the-unit MDU in the<br />

Lexington market.<br />

Although Ball Homes thought<br />

an optional amenity would be more<br />

palatable during tight times, Windstream<br />

saw nearly a 100 percent take<br />

rate from residents who moved into<br />

the first phase of the project, and occupancy<br />

was 75 percent after nine<br />

months. Why? Forty 57 has amenities<br />

that go beyond the pool, gym and<br />

community lounge.<br />

“By going with fiber, we’re at the<br />

top of the game here locally while<br />

future-proofing the property for the<br />

foreseeable future,” says Brandon Buffin,<br />

Ball Homes’ IT director. “It’s been<br />

quite a positive.”<br />

mgm CityCenter<br />

las Vegas<br />

Imagine that you’ve just arrived at a hotel.<br />

As you walk into your room, a bellhop<br />

greets you by name, switches on<br />

the lights, puts some music on the stereo<br />

and draws the curtains to reveal a<br />

spectacular view. The bellhop asks you<br />

for precise instructions about how you<br />

would like the room to be lit, heated<br />

FTTH CounCil | The Advantages of Optical Access | 21


and shaded; what your tastes are in<br />

music and video; what time you would<br />

like to wake up – and, by the way, can<br />

we send up anything for dinner?<br />

Now imagine that all these things<br />

happen as if by magic, with no hotel<br />

employee in sight. Guests at the ARIA<br />

Resort and Casino and the Mandarin<br />

Oriental, the two hotels in Las Vegas’<br />

new CityCenter, are treated to this kind<br />

of personalized automation based on<br />

technology from Control4.<br />

CityCenter, a joint venture between<br />

MGM Resorts International and<br />

Dubai’s Infinity World Development<br />

Corp. is a 67-acre complex on the Las<br />

Vegas Strip that is still under development.<br />

CityCenter is billed as the<br />

world’s largest private green development,<br />

with all its buildings receiving<br />

LEED Gold certification.<br />

Guests can use remote controls<br />

and bedside panels to control their environments<br />

and save their chosen settings.<br />

They can select scenes such as<br />

“good night,” which turns off the lights<br />

and TV, shuts the curtains and turns on<br />

privacy notification. Wake-up scenes<br />

awaken guests in a “subtle and more<br />

soothing way” by gradually changing<br />

temperature, lighting, curtain opening<br />

and music volume.<br />

Televisions in guest rooms also<br />

serve as giant computer monitors; as<br />

screens for game consoles, cameras<br />

and MP3 players; and as communications<br />

centers that display everything<br />

from voice mails to package deliveries.<br />

Because all the devices in the room<br />

communicate automatically with the<br />

hotel system, guests don’t have to<br />

complain about the remote’s needing<br />

new batteries or the mini bar’s needing<br />

replenishment. The system does<br />

the complaining for them before the<br />

guests become aware that anything is<br />

lacking.<br />

Of course, it goes without saying<br />

that CityCenter guests have access to<br />

plenty of wireless Internet bandwidth<br />

and to many HD TV channels. The resulting<br />

solution not only provides a<br />

“Wow!” experience for guests but also<br />

22 | The Advantages of Optical Access | FTTH CounCil<br />

helps the hotels reduce energy costs<br />

and improve their operations (and, of<br />

course, call attention to their green<br />

status). Probably the biggest saving<br />

comes from being able to easily<br />

change climate-control settings, close<br />

the shades and turn off the lights in<br />

unoccupied rooms.<br />

CityCenter’s room automation is<br />

supported by an extremely robust IP<br />

infrastructure. MGM Resorts ran fiber<br />

to every guest room with 1 Gbps bandwidth.<br />

The network was designed to<br />

minimize the number of communications<br />

closets on guest floors, leaving<br />

more space for guest rooms. City-<br />

Center distributes voice, video and<br />

data over the IP network, and its internal<br />

building systems use the same<br />

network for communications. MGM<br />

Resorts expects the infrastructure to<br />

have plenty of capacity for additional<br />

applications for many years to come.<br />

In the CityCenter room-automation<br />

system, as in Control4’ s residential<br />

solutions, ZigBee sensors attached<br />

to devices such as light switches, dimmers<br />

and keypads communicate wire-<br />

lessly with a Control4 control unit in<br />

each guest room. The control units, in<br />

turn, communicate over the fiber network<br />

with a centralized server, which<br />

enables building staff to manage the<br />

entire system remotely.<br />

Control4 now has more than 10,000<br />

guest rooms deployed. It estimates<br />

that, depending on a hotel’s location,<br />

its energy efficiency and how it implements<br />

the Control4 solution, the payback<br />

period is between two and five<br />

years. Focusing on energy management<br />

alone, the payback is less than<br />

two years.<br />

Control4 has generalized the hospitality<br />

solution for use in other types<br />

of multifamily communities, such as<br />

condominiums and traditional neighborhood<br />

developments, where developers<br />

want to use technology for both<br />

lifestyle enhancement and sustainability.<br />

saCramento rental<br />

For Trammell Crow’s Steve Hester, just<br />

getting the Alexan Midtown project<br />

up and running was a Herculean task.<br />

In 2007, while his team was planning


the 275-unit mid-rise on the edge of Sacramento’s hip Midtown<br />

area, the wheels started coming off capital market<br />

financing. Originally, Trammell Crow had envisioned the<br />

project as a condominium whose units would be marketed<br />

to young professionals working in Sacramento’s health and<br />

government sectors, but it had to modify that plan quickly<br />

as lenders began to balk.<br />

The company thought the project still made sense as a<br />

rental. The site is located in Sacramento’s “medical triangle,”<br />

within easy biking distance of three major hospitals, including<br />

the UC Davis Medical Center, and just a few minutes<br />

from the California State Capitol and myriad state government<br />

offices and agencies.<br />

There was only one catch: Given Sacramento’s starring<br />

role in the housing debacle, with the area routinely ranking<br />

near the top of foreclosure statistics nationally, the rental<br />

market was flooded with houses that otherwise would have<br />

been for sale. That, in turn, put pressure on apartment rents.<br />

For the Alexan Midtown to compete, it would need to offer<br />

residents more for their money, including state-of-the-art<br />

technology that would appeal to the young medical and government<br />

professionals that were still its target market. That<br />

was especially true because of the Midtown price point –<br />

studios were advertised for just under $1,400 a month, more<br />

than double the rent of other entry-level digs in the area.<br />

One differentiator materialized by chance. Because the<br />

aesthetics of the project called for existing overhead cables<br />

to be buried underground, Hester got to work contacting<br />

the owners of those cables. One happened to be Roseville,<br />

Calif.-based SureWest, an independent ILEC that has been<br />

aggressively rolling out IP-based services in Northern California.<br />

SureWest started offering IP-based HDTV as early as<br />

2006 in the greater Sacramento area and already had a fiber<br />

ring running right past the Alexan site.<br />

“I’ve been doing this for 30 years, and that almost never<br />

happens, where there’s actually existing fiber fronting the<br />

property,” Hester says. “If it does happen, you usually can’t<br />

tap into it because it’s for 911 or a hospital or someone else’s<br />

dedicated use. But in this case, we had SureWest right there,<br />

and they were only too happy to serve the property.”<br />

Because the property already had fiber running literally<br />

to its door, the developer decided to make an investment<br />

for the future and take the fiber path all the way to all units.<br />

Now, residents can choose data speeds up to 50 Mbps. “Oftentimes,<br />

people talk about having a fiber network. But<br />

I think … that term has gotten watered down, just as the<br />

term ‘organic’ has been overused in the food industry. Nobody<br />

knows what it means anymore,” Hester says. “But at<br />

the Alexan, we have the real deal. This is a pure fiber system.<br />

As far as we can tell, no one else in the market can say that.”<br />

The project has been a success for SureWest, which has<br />

signed up 55 percent of the project’s tenants. And it has<br />

been a success for Trammel-Crow as well.<br />

Ftth Versus other<br />

types of <strong>Fiber</strong> networks<br />

In 2006, the FTTH Councils for Europe, Asia and North<br />

America standardized the definitions for fiber to the<br />

home and fiber to the building (also called fiber to the<br />

basement). They are:<br />

<strong>Fiber</strong> to the home (Ftth)<br />

A fiber optic communications path that extends from<br />

an operator’s switching equipment to at least the<br />

boundary of a home living space or business office<br />

space. The definition excludes architectures in which<br />

the optical fiber terminates before reaching either a<br />

home living space or business office space and the access<br />

path continues over a physical medium other than<br />

optical fiber.<br />

<strong>Fiber</strong> to the bUilding (Fttb)<br />

A fiber optic communications path that extends from<br />

an operator’s switching equipment to at least the<br />

boundary of a private property enclosing homes or<br />

businesses. The optical fiber terminates before reaching<br />

home living spaces or business office spaces. The<br />

access path then continues over another access medium<br />

– such as copper or wireless – to subscribers.<br />

Other definitions are not standardized but are commonly<br />

used by people in the industry:<br />

<strong>Fiber</strong> to the node or <strong>Fiber</strong> to<br />

the neighborhood (Fttn)<br />

FTTN is not defined by the FTTH Councils. In general, it<br />

refers to a system in which fiber is extended to a streetside<br />

or on-pole cabinet within 1,000 to 5,000 feet of<br />

the average user. From there, copper or wireless serves<br />

users, typically through a variant of DSL (Digital Subscriber<br />

Line).<br />

FTTN should not be confused with hybrid fibercoax<br />

(HFC), an architecture used mainly by cable companies<br />

to implement DOCSIS, the standard that allows<br />

data to be transmitted over cable TV systems. In a typical<br />

HFC system, fiber runs to each DOCSIS node and<br />

coaxial cable running from the node serves between<br />

100 and 500 users. Nor should FTTN be confused with<br />

RFoG, an FTTH technology that uses the signal protocols<br />

developed for DOCSIS. With RFoG, each user gets<br />

its own DOCSIS micronode.<br />

<strong>Fiber</strong> to the CUrb (FttC)<br />

Similar to FTTN, except that the fiber is brought much<br />

closer to user premises – typically closer than 1,000<br />

feet and often closer than 300 feet. FTTC installations<br />

may use either VDSL or Ethernet (over copper cable or<br />

wireless) to bring the signal from the fiber termination<br />

point to the user. Point-to-point wireless is sometimes<br />

(and rarely) used in rural areas simply to bring a signal<br />

from the roadway to a home that could be a mile or<br />

more away.<br />

FTTH CounCil | The Advantages of Optical Access | 23


FoCUs on mUniCiPal<br />

Priorities<br />

by the end of 2011, the economic<br />

stimulus program will<br />

have increased the number<br />

of municipal fiber networks to nearly<br />

100 and expanded several existing<br />

networks. The business case for others<br />

has improved thanks to “middle mile”<br />

Q: How can I determine whether<br />

my community is underserved?<br />

Residents complain about lack<br />

of bandwidth, and real estate<br />

agents say property values are<br />

suffering, but most residents<br />

have some broadband access and<br />

the incumbent operators plan to<br />

upgrade in a few years to DOCSIS<br />

3.0 and fiber to the node.<br />

A: It sounds as though these upgrades<br />

will be installed just as broadband<br />

needs will increase beyond what<br />

DOCSIS can easily deliver and what<br />

FTTN can deliver at all. Be sure to<br />

take the needs of the business<br />

community into consideration<br />

in addition to those of residents.<br />

Many economic development officials<br />

believe 1 Gbps access is<br />

needed to lure new businesses to a<br />

town. Also, the Commerce Department’s<br />

national map of broadband<br />

accessibility says DOCSIS 3.0 upgrades<br />

are possible for only 82 percent<br />

of the nation’s homes, at most.<br />

The shortfalls tend to be in smaller<br />

communities.<br />

Q: Can a fiber network help bring<br />

new business into my community?<br />

A: There’s quite a bit of evidence<br />

that fiber connectivity encourages<br />

businesses to stay, allows them to<br />

grow and attracts new businesses,<br />

particularly in high-tech industries.<br />

FTTH also facilitates home-based<br />

start-up businesses. Of course, it’s<br />

24 | The Advantages of Optical Access | FTTH CounCil<br />

fiber also funded by the stimulus. And<br />

then there is Google’s plan for partnering<br />

with municipalities on 1 Gbps<br />

fiber, starting in Kansas City, Kan.<br />

All this activity has made municipal<br />

officials keenly aware of the potential<br />

for using ultra-broadband to promote<br />

key QUestions mUniCiPal<br />

oFFiCials ask<br />

only one component of an overall<br />

economic development strategy.<br />

Q: Don’t DOCSIS 3.0 and FTTN both<br />

use fiber?<br />

A: They use fiber, but usually not all the<br />

way to the home. The last 1,000 to<br />

5,000 feet from the fiber’s endpoint<br />

to the home is copper – coaxial cable<br />

in the case of DOCSIS, plain copper<br />

wire for FTTN. That limits bandwidth,<br />

reliability and versatility.<br />

However, you should check<br />

with the cable company to find out<br />

whether its DOCSIS 3.0 upgrade<br />

will make use of one of the new<br />

FTTH transitional technologies –<br />

RFoG (for Radio Frequency, or RF,<br />

over Glass) or DPoE (for DOCSIS<br />

Provisioning of EPON). These standards<br />

are more compatible with<br />

existing cable networks than “conventional”<br />

FTTH but can bring fiber<br />

directly to the premises, so they are<br />

gaining interest from cable companies.<br />

They can eventually be converted<br />

to conventional FTTH, too.<br />

Q: My town’s residents are just like<br />

others in the region, and maybe<br />

have even slightly higher incomes.<br />

Why don’t the phone and<br />

cable companies consider them<br />

attractive customers for FTTH?<br />

A: Many cable companies, telephone<br />

companies and independent broadband<br />

providers are now installing<br />

FTTH. But the companies operating<br />

economic development and enhance<br />

the quality of life in their communities.<br />

But they still need answers to<br />

many questions, for example about<br />

technology choices and private-sector<br />

partnerships.<br />

in your town may have prioritized<br />

other service areas that offer them<br />

more geographical or demographic<br />

advantages. Or, they may not have<br />

access to the capital needed upfront<br />

to expand their services.<br />

Q: The telephone company that<br />

operates here is installing FTTH<br />

in the new development just 10<br />

miles up the road. Why not here?<br />

A: It is usually easier to install fiber in<br />

new developments than in existing<br />

ones. The fiber goes into the same<br />

trenches that have to be dug anyway<br />

for water, electricity and sewer<br />

service. In fact, copper wiring usually<br />

can’t be run that way, so fiber<br />

is usually cheaper. Also, the new<br />

residents are not already tied to a<br />

cable or phone provider, so whoever<br />

installs a FTTH network in a<br />

new community has an easier time<br />

signing up customers.<br />

That’s why most new, large<br />

housing developments are being<br />

equipped with fiber.<br />

Q: Would installing fiber require<br />

that my streets be dug up?<br />

A: It depends. Many network builders<br />

in North America use aerial fiber<br />

installed on poles along with existing<br />

telephone, electric and cable<br />

wiring. Where trenching is impractical,<br />

contractors can often use horizontal<br />

drilling or pull fiber through<br />

existing ducts, water pipes, sewers


and gas lines rather than digging<br />

up streets and sidewalks. In addition,<br />

many cities already have usable<br />

fiber under their streets – fiber<br />

that is not being used to its limit.<br />

Finally, when there is no good alternative<br />

to trenching, new microtrenching<br />

techniques may allow it<br />

to be done with less disruption to<br />

traffic. A deep groove is cut quickly<br />

into the pavement with a large circular<br />

saw on wheels, and fiber is<br />

laid into the groove.<br />

Q: What might I do to get fiber to<br />

my residents without building my<br />

own network? My town has too<br />

much debt now to borrow more,<br />

and we have no experience<br />

operating a municipal utility.<br />

A: You might try lobbying the incumbents<br />

– the cable and telephone<br />

companies serving your town now.<br />

You could offer such incentives as<br />

a reduced franchise fee, access to<br />

public property or an accelerated<br />

permitting process. If you own an<br />

institutional fiber ring connecting<br />

municipal buildings, schools<br />

Distribution box for fiber lashed to existing aerial<br />

cable; this method is quick and inexpensive.<br />

and libraries, you might be able to<br />

propose “fiber swaps.” In addition,<br />

some communities launch educational<br />

campaigns about the value<br />

of FTTH and encourage residents<br />

to commit to taking fiber services if<br />

and when a provider offers them.<br />

You might also invite outside<br />

companies to consider bringing<br />

FTTH to your residents and offer<br />

the same kinds of incentives described<br />

above. Or you could enter<br />

into a public-private partnership<br />

to build a fiber network jointly<br />

with a private partner. In Europe,<br />

such partnerships are common,<br />

especially for large projects such as<br />

those bringing fiber to all homes in<br />

Amsterdam and Vienna.<br />

In the last few years, this approach<br />

has begun to gain traction<br />

in the United States, with a<br />

variety of different arrangements<br />

between the public and private<br />

parties being used. In fact, when<br />

Google proposed in 2010 to build<br />

an FTTH network in one or more<br />

American communities, more than<br />

1,100 communities responded with<br />

proposals for how they could work<br />

together with the company.<br />

Q: Is it better for the same company<br />

to run the network and provide<br />

services, or should we consider<br />

an open-access network with<br />

multiple providers?<br />

A: There is no clear answer. Openaccess<br />

networks, where the network<br />

builder (either a municipal<br />

or a private entity) “rents” bandwidth<br />

to a potentially unlimited<br />

number of content providers, are<br />

more common in Europe and Asia<br />

than in the United States. But they<br />

have worked here as well. At present,<br />

open-access networks in the<br />

United States tend to be either<br />

Pulaski Electric System, a municipal electric utility in Pulaski, Tenn., uses its FTTH network to operate a smart electric grid and deliver triple-play<br />

services to residents.<br />

FTTH CounCil | The Advantages of Optical Access | 25


municipal networks or networks<br />

built by companies that specialize<br />

in bringing fiber to new buildings<br />

and subdivisions.<br />

Municipal utilities sometimes<br />

prefer to provide services directly,<br />

at least at the outset, for two reasons:<br />

First, it gives them more<br />

control over the quality of user<br />

experience on their networks, and<br />

second, they may have difficulty<br />

attracting third-party service providers<br />

to start-up networks. The<br />

downside of a closed network,<br />

however, is that there is less variety<br />

in content and services. Many public<br />

broadband advocates believe<br />

that opening networks to innovative<br />

service providers is the best<br />

way to maximize the networks’<br />

value for their communities. Networks<br />

built with broadband stimulus<br />

funds must allow open access.<br />

Q: What about Wi-Fi or WiMAX?<br />

The FCC’s National <strong>Broadband</strong><br />

Plan calls for wireless in remote<br />

Prefabricated pedestals a few feet high are unobtrusive<br />

and hold fiber distribution points.<br />

Some models can be entirely buried.<br />

26 | The Advantages of Optical Access | FTTH CounCil<br />

OECD data for 1996-2007 analyzed by Raul L. Katz and Javier Avila, Columbia Institute for Tele-Information,<br />

for a 2010 paper<br />

areas. Isn’t that a good substitute<br />

for fiber?<br />

A: Wi-Fi, WiMAX and cellular service<br />

are important public amenities,<br />

but they are not substitutes or replacements<br />

for FTTH. Rather, they<br />

complement and extend fixed fiber<br />

networks. In fact, given that many<br />

wireless access points and cell sites<br />

are now fiber-connected – and that<br />

most of them will be soon – wireless<br />

service can be considered an ap-<br />

Though new wireless technologies have made<br />

possible all kinds of exciting services, wireless<br />

access alone cannot attract new businesses.<br />

plication on a fiber network rather<br />

than a separate type of network.<br />

Though new, high-bandwidth<br />

wireless technologies have made<br />

possible all kinds of exciting consumer<br />

and business services, wireless<br />

access alone cannot attract<br />

new businesses to a community or<br />

enable businesses to grow. Wireless<br />

networks that cover wide areas are<br />

not reliable enough to deliver video<br />

and other emerging broadband<br />

services with high quality of service.<br />

In general, no one has been able<br />

to develop a compelling business<br />

case for a municipalitywide Wi-Fi<br />

network. However, Wi-Fi in targeted<br />

areas such as commercial shopping<br />

streets may be worth considering.<br />

In addition, many multifamily<br />

community owners find that community<br />

wireless, as an adjunct to<br />

wireline broadband, is a valuable<br />

amenity.<br />

Q: Where can I go to find out more?<br />

A: The FTTH Council, www.ftth<br />

council.org, has quarterly meetings<br />

and monthly webinars. <strong>Broadband</strong><br />

<strong>Properties</strong>’ municipal portal, www.<br />

munibroadband.com, can direct<br />

you to a number of additional resources.<br />

The magazine also maintains<br />

a database on its website,<br />

www.bbpmag.com, that shows<br />

all FTTH deployments by municipalities<br />

and others, including small<br />

telephone companies.


seven hundred thousand FTTH subscribers operated<br />

home-based businesses in 2010, and they added<br />

$41.6 billion to the U.S. economy in the 12 months<br />

ending August 2010. That number, calculated by market<br />

researcher Michael Render of RVA, is a conservative estimate.<br />

To place this figure in context, 700,000 jobs is more<br />

than the entire U.S. economy created in 2010!<br />

FTTH access is correlated strongly with establishment<br />

of a home business, according to Render’s data. Doubling<br />

the download bitrate of broadband services adds 0.5 per-<br />

50%<br />

45%<br />

40%<br />

35%<br />

30%<br />

25%<br />

20%<br />

Ftth generates Jobs<br />

Correlation of % who have done telework with<br />

Download/Upload speed (Mbps)<br />

DSL<br />

Cable<br />

Modem<br />

0 1 2 3 4 5 6 7<br />

FTTH access is correlated strongly with<br />

establishment of a home business, in the<br />

RVA LLC data. Doubling the bitrate<br />

adds a half percent to the number of<br />

customers with a home business.<br />

cent to the number of broadband customers with a home<br />

business. Small businesses also depend on broadband<br />

reliability and on upload speed – both areas where fiber<br />

vastly outpaces other broadband technologies.<br />

Some of this business revenue, of course, would have<br />

existed even if the business owners had no fiber access.<br />

But Render attributes nearly $10 billion of the $41 billion<br />

directly to fiber, because some of his survey respondents<br />

said their businesses would not even be possible<br />

without fiber and others said fiber made their businesses<br />

more efficient.<br />

FTTH<br />

FTTH access is strongly correlated<br />

with working at home, in RVA LLC<br />

customer survey data from spring 2010.<br />

Correlation of % who have a home-based business with<br />

Download/Upload speed (Mbps)<br />

17.2%<br />

17.0%<br />

16.8%<br />

16.6%<br />

16.4%<br />

16.2%<br />

16.0%<br />

15.8%<br />

15.6%<br />

2010 Research Shows 9% of FTTH Homes<br />

Report Home-Based Business Only Possible<br />

or More Efficient Due to FTTH<br />

2008<br />

2009<br />

2010<br />

7%<br />

DSL<br />

Cable<br />

Modem<br />

0 1 2 3 4 5 6 7<br />

9%<br />

13%<br />

0% 2% 4% 6% 8% 10% 12% 14%<br />

FTTH<br />

Home-based businesses are clearly<br />

facilitated by fiber; 9 percent of FTTH<br />

customers in spring 2010 claimed that<br />

fiber made their home business possible<br />

or more efficient.<br />

Source: RVA LLC.<br />

FTTH CounCil | The Advantages of Optical Access | 27


Ftth sUCCess stories<br />

the reliability, bandwidth and<br />

future-proofing of fiber to the<br />

premises creates new jobs and<br />

preserves old ones. Some examples:<br />

aUbUrn, ind.<br />

In 2005, Cooper Industries, a Fortune<br />

200 company whose global data operations<br />

were located in Auburn, was at a<br />

crossroads – it had to either expand its<br />

Auburn facility or relocate. The company’s<br />

most critical requirement was for<br />

fast, resilient and reliable broadband.<br />

Auburn Essential Services, a municipal<br />

broadband provider, worked with<br />

Cooper to craft a business-class broadband<br />

service and thereby preserve<br />

$7 million in annual payroll for the<br />

community. In addition, the city has<br />

retained a number of Internet-dependent,<br />

small but growing businesses.<br />

bristol, tenn.<br />

The Bristol Herald Courier’s new printing<br />

production facility features a stateof-the-art<br />

printing press – the first of its<br />

kind in the country. Owned by Media<br />

General and built by BurWil Construction<br />

Company, the $21 million facility<br />

has 50,000 square feet that is dedicated<br />

to producing and distributing seven<br />

Southwest Virginia newspapers. Jim<br />

Hyatt, Media General’s regional vice<br />

president and publisher, said the highspeed<br />

data transfer and reliable fiber<br />

optics were the main reasons for locating<br />

the facility in Bristol. More examples<br />

from Bristol, Tenn., are available at<br />

www.btes.net/btestestimonials.html.<br />

bristol, Va.<br />

BVU OptiNet has fundamentally<br />

changed the economic face of Southwest<br />

Virginia. Thanks to grants from<br />

the U.S. Department of Commerce<br />

and the Virginia Tobacco Indemnification<br />

and Community Revitalization<br />

Commission, businesses in seven rural<br />

counties in Southwest Virginia now<br />

have access to broadband speeds of<br />

up to 1 Gbps and transparent LAN service,<br />

which vastly improves their communications<br />

and networking capabilities.<br />

High-tech companies Northrop<br />

28 | The Advantages of Optical Access | FTTH CounCil<br />

Grumman and CGI have both built<br />

major facilities in Russell County, and<br />

two new industrial parks are currently<br />

under construction in Buchanan<br />

and Tazewell counties. By 2008, the<br />

high-tech infrastructure had already<br />

brought 1,220 new jobs to Southwest<br />

Virginia, with more than $50 million in<br />

new private investment and $37 million<br />

in annual payrolls. Growth has<br />

continued through the recession.<br />

Another significant benefit is that<br />

small health clinics in isolated locations<br />

of Southwest Virginia can now<br />

be digitally linked to larger comprehensive<br />

hospitals. The University of<br />

Virginia at Wise launched the state’s<br />

first undergraduate software engineering<br />

program due to partnerships<br />

with Northrop Grumman and CGI. In<br />

addition, the town of Lebanon turned<br />

a former shopping center into the Virginia<br />

Technology Development Center,<br />

a new high-tech training facility to<br />

be managed by the University of Virginia<br />

at Wise.<br />

lenowisCo Planning<br />

distriCt Commission,<br />

Va. and ky.<br />

More from Southwest Virginia: Several<br />

business were able to stay or expand<br />

in the region because of broadband,<br />

including both home-based businesses<br />

and larger ones such as Crutchfield<br />

Electronics. New businesses<br />

that located in the area because<br />

of the broadband network include<br />

OnePartner, an advanced technology<br />

and application center and the only<br />

It is easy to find ducts for fiber.<br />

commercial Tier 3 data center in the<br />

United States. Holston Medical Group<br />

stores its electronic medical records<br />

at OnePartner’s data center, taking<br />

advantage of the data center’s capacity<br />

and connectivity to run virtual<br />

clinical trials. Altogether, the network<br />

attracted an estimated $50 million in<br />

corporate investments in the region<br />

and created 1,200 jobs even as the recession<br />

deepened.<br />

Residential customers are using<br />

broadband to better their lives in this<br />

economically depressed area as well. In<br />

a survey of its most recent 271 customers,<br />

29 percent said they used their new<br />

broadband service either for distance<br />

learning – to earn degrees that would<br />

make them eligible for better-paying<br />

jobs – or in home-based businesses.<br />

These work-from-home employees<br />

and owners of cottage industries represent<br />

a wide range of businesses, such<br />

as an interior designer using broadband<br />

to search for design inspirations,<br />

agents managing health insurance<br />

programs for a national health insurance<br />

company, a person managing<br />

orders for a national floral service over<br />

the Internet and a toolmaker selling<br />

wedges for leveling mobile homes.<br />

maCon and lebanon, mo.<br />

Shane Mayes, CEO, describes his Onshore<br />

Technology Services as a rural<br />

outsourcing company. It provides<br />

software development and integration<br />

and other technology services in<br />

an outsourced fashion in competition<br />

with vendors in India, China, Mexico,<br />

Russia and Brazil. His company opened<br />

in 2005 and has employees around the<br />

state. Mayes said he chose Macon and<br />

Lebanon for his offices because those<br />

cities had already run fiber to every<br />

business and household in their area<br />

His company would only open offices<br />

in communities with access to highspeed<br />

Internet, Mayes said.<br />

Chelan CoUnty, wa.<br />

Yahoo picked Wenatchee for a data<br />

center site. Said Kevin Timmons, Yahoo’s<br />

vice president of operations, “We


Recent advances in deployment technology have made installing<br />

fiber in multiple-dwelling-unit properties quick and inexpensive.<br />

chose North Central Washington for<br />

this important facility because of the<br />

great quality of life here, the immediate<br />

availability of suitable space, the<br />

‘can-do’ spirit of port and other community<br />

leaders we’ve met, the cost<br />

and reliability of electricity, and the<br />

access to a world-class fiber optic network.<br />

They’ve taken all the right steps<br />

to create a terrific environment for us.”<br />

Cody, Powell and<br />

ten sleeP, wyo.<br />

Eleutian partners with CDI Holdings<br />

of South Korea, a market leader in<br />

English education, to teach conversational<br />

English to South Korean students<br />

via high-speed videoconferencing.<br />

Headquartered in rural Ten Sleep,<br />

Wyo., Eleutian Technology operates<br />

nine teaching centers throughout the<br />

Western United States, including in<br />

FTTH communities Cody and Powell.<br />

They are open for business 24 hours<br />

a day, seven days a week. It’s the largest<br />

new job creator in the region. Said<br />

President Barack Obama in January, “In<br />

Ten Sleep, Wyo., a town of about 300<br />

people, a fiber-optic network allowed<br />

a company to employ several hundred<br />

teachers who teach English to students<br />

in Asia over the Internet, 24 hours a<br />

day. You’ve all heard about outsourcing.<br />

Well, this is what we call ‘insourcing,’<br />

where overseas work is done right<br />

here in America.”<br />

Rob Duncan, COO of Alpine Access,<br />

a provider of contact center services<br />

that uses home-based agents, opened<br />

a virtual call center in Powell as well.<br />

He said, “Consider the 5,500 residents<br />

of Powell, Wyo. With 20 percent of the<br />

population below the poverty line<br />

and the town located 500 miles from<br />

the largest metropolitan area, the citizens<br />

knew something drastic needed<br />

to be done to save the idyllic quality<br />

of life they cherished in a small town.<br />

Together they decided to spend $4.9<br />

million on connecting each home to a<br />

private-public fiber optic network. This<br />

high-speed access helped connect<br />

them with distant relatives, provided<br />

online shopping and opened up new<br />

markets for local businesses. It also<br />

made the entire population attractive<br />

to virtual call center recruiters.”<br />

doUglas CoUnty, wa.<br />

Sabey’s new data center campus, Intergate.Columbia,<br />

sits on 30 acres and<br />

accommodates two data center buildings,<br />

including one 205,000-squarefoot<br />

structure and one of 188,000<br />

square feet. The buildings are served<br />

by a new, redundant substation on<br />

site. Douglas County PUD, along with<br />

its grid of hydroelectric power, supplies<br />

the site with abundant, inexpensive<br />

electricity, thereby reducing electric<br />

costs by 40 to 70 percent. Multiple<br />

fiber carriers are available to provide<br />

redundant service.<br />

gainesVille, Fla.<br />

Gainesville’s municipal network has<br />

attracted businesses to the area and<br />

allowed them to expand. The Prog-<br />

ress Corporate Park, located outside<br />

Alachua, has been served with broadband<br />

since 1998 and now hosts many<br />

biotech organizations as well as the<br />

University of Florida’s Sid Martin Biotechnology<br />

Incubator. GRUCom is<br />

also providing fiber services to Santa<br />

Fe College’s new Alachua Corporate<br />

Training Center, which will be located<br />

next to the research park. The center<br />

will provide workforce training for the<br />

biotech industry.<br />

The City of Gainesville partnered<br />

with the Council on Economic Development<br />

to provide high-speed connectivity<br />

to the Gainesville Technology<br />

Enterprise Center, which also fosters<br />

early-stage technology start-up companies.<br />

Several businesses that received<br />

connectivity at the enterprise<br />

center have matured and moved to locations<br />

where GRUCom’s services are<br />

available and continue to use them today.<br />

The fiber network has also allowed<br />

several existing companies to receive<br />

superior service at much lower prices.<br />

JaCkson, tenn.<br />

The Jackson Energy Authority, a publicly<br />

owned utility, built a fiber-to-thepremises<br />

system in its home town<br />

and surrounding areas and opened<br />

the system to service providers that<br />

sell telephone, Internet access and<br />

cable television to local residents and<br />

businesses. Among the companies<br />

in Jackson taking advantage of this<br />

state-of-the-art network: Trinity Solutions,<br />

Xpert Systems Integration and<br />

Interworks. All three, which position<br />

themselves as providers of IT support<br />

services for small businesses, locate<br />

their servers in Jackson Energy’s operations<br />

center.<br />

laFayette, la.<br />

The municipal FTTH system has attracted<br />

call centers and a myriad of<br />

video production operations – firms<br />

that depend on reliable broadband to<br />

move huge files back and forth among<br />

video editing and special effects firms<br />

worldwide. The result: thousands of<br />

new jobs.<br />

FTTH CounCil | The Advantages of Optical Access | 29


introdUCing 1 gbPs<br />

to the home<br />

Few individuals need 1 Gbps<br />

broadband to their homes today,<br />

but many people are betting<br />

that a gigabit will be the standard<br />

soon enough. Google chose Kansas<br />

City, Kan., over 1,100 other applicants<br />

for its first 1 Gbps FTTH build, and EPB<br />

<strong>Fiber</strong> Optics (the municipally owned<br />

network in Chattanooga, Tenn.) is now<br />

offering 1 Gbps access to residential<br />

and business customers throughout<br />

its service area.<br />

Announcing its program last year,<br />

Google offered several scenarios.<br />

“Imagine sitting in a rural health clinic,<br />

streaming three-dimensional medical<br />

imaging over the Web and discussing<br />

a unique condition with a specialist<br />

in New York,” its statement said. “Or<br />

downloading a high-definition, fulllength<br />

feature film in less than five minutes.<br />

Or collaborating with classmates<br />

around the world, while watching live,<br />

3D video of a university lecture.”<br />

google and kansas City<br />

“In selecting a city,” said Milo Medin,<br />

Google’s vice president for access services,<br />

“our goal was to find a location<br />

where we could build efficiently, make<br />

an impact on the community and develop<br />

relationships with local government<br />

and community organizations.<br />

30 | The Advantages of Optical Access | FTTH CounCil<br />

... We’ll be working closely with local<br />

organizations including the Kauffman<br />

Foundation, KCNext and the University<br />

of Kansas Medical Center to help<br />

develop the gigabit applications of<br />

the future.”<br />

Pending approval from the city’s<br />

Board of Commissioners, Google expects<br />

to offer 1 Gbps service as early<br />

as 2012. Medin says Google will “also<br />

be looking closely at ways to bring<br />

ultra-high-speed Internet to other cities<br />

across the country. ... We can’t wait<br />

to see what new products and services<br />

will emerge as Kansas City moves from<br />

traditional broadband to ultra-highspeed<br />

fiber optic connections.”<br />

Medin described Kansas City as<br />

only “the start, not the end of the<br />

project.” He added, “Over the coming<br />

months, we’ll be talking to other interested<br />

cities about the possibility of us<br />

bringing ultra-high-speed broadband<br />

to their communities.”<br />

Chattanooga<br />

EPB’s 1 Gbps service is available to every<br />

home and business within EPB’s<br />

600-square-mile, nine-county service<br />

area. The Internet service rides on EPB’s<br />

all-fiber, smart-grid network, which<br />

EPB built with the help of a $111 million<br />

grant from the Energy Department<br />

before the economic stimulus added<br />

more smart-grid funding nationwide<br />

in 2009.<br />

The city says its 30 Mbps entrylevel<br />

service lets users download and<br />

record four channels at once for viewing<br />

later. And the electric utility saves<br />

at least $40 million a year on power by,<br />

among other things, reducing theft<br />

of electricity and shaving peak loads.<br />

But as Harold DePriest, CEO of EPB,<br />

said, “The overriding consideration<br />

is that this is a real tool for economic<br />

development for our community. It is<br />

the basis for creating the products and<br />

services of the Internet of the future.<br />

And it’s in Chattanooga today.”


Understanding <strong>Fiber</strong><br />

network arChiteCtUres<br />

For historical reasons, optical networks<br />

developed along several<br />

parallel evolutionary paths. Unlike<br />

the Betamax/VHS wars, no one<br />

won the FTTH wars, so network builders<br />

can now choose among several<br />

options or even mix and match them<br />

as needed. The “family” of passive<br />

optical networks now has two major<br />

branches – PON and AON (also called<br />

P2P) – and many technical variants<br />

within those branches.<br />

PON stands for “passive optical<br />

network.” Networks are passive when<br />

they have no powered electrical devices<br />

between a central office and an<br />

end user. All the handling of the light<br />

beams that carry the signal is done<br />

with mirrors, prisms and fiber.<br />

AON stands for “active optical network.”<br />

As the name implies, these networks<br />

have electrical devices – generally<br />

Ethernet routers and switches<br />

– along the fiber path. These days, the<br />

“active electronics” are usually in central<br />

offices rather than in remote cabinets<br />

or local points of presence.<br />

For this reason, the industry has<br />

begun to call active networks pointto-point<br />

or P2P networks. This refers<br />

to the fact that each end user gets a<br />

dedicated fiber (or several dedicated<br />

fibers) extending from the central office<br />

to the user premises. By contrast,<br />

in a PON, which is sometimes called a<br />

point-to-multipoint network, each fiber<br />

in the central office carries signals<br />

to as many as 128 customers (16- and<br />

32-way splits are normal with today’s<br />

most widely used PON standards).<br />

Because each fiber requires its<br />

own laser, P2P networks require more<br />

power and space in the central office.<br />

But because they do not require fiber<br />

distribution hubs (containing optical<br />

splitters) in the field, they tend to be<br />

simpler to operate.<br />

eVolUtion oF Pon<br />

standards<br />

Within the general category of passive<br />

optical networks, there are two<br />

branches. One is based on Ethernet,<br />

the same standard that is used in home<br />

and corporate local-area networks. The<br />

Ethernet branch has been standardized<br />

by IEEE – the Institute of Electrical and<br />

Electronics Engineers. The other branch<br />

is based on carrier standards from the<br />

ITU – International Telecommunication<br />

Union – and is more “telephone-like.”<br />

the itU Family<br />

BPON (for “<strong>Broadband</strong> PON”) was<br />

the first PON standard widely used in<br />

North America. It is based on the ATM<br />

protocol and has a top speed to users<br />

of 622 Mbps and upstream speed<br />

of 155 Mbps, but it allows the use of a<br />

separate wavelength of light to support<br />

video services.<br />

BPON has largely been replaced by<br />

GPON, which allows 2.48 Gbps downstream<br />

to the user and 1.24 Gbps upstream<br />

and also has a separate video<br />

wavelength. GPON supports ATM, Ethernet<br />

and TDM (the protocol phone<br />

companies use for ordinary telephone<br />

service) by wrapping or “encapsulating”<br />

the data packets with extra bits.<br />

GPON became commercially available<br />

in 2006 and is the most widely<br />

used standard in North America today.<br />

A new upgrade, 10G GPON, is now<br />

becoming commercially available.<br />

As the name implies, downstream<br />

bandwidth is about 10 Gbps – four<br />

times the current standard. Upstream<br />

bandwidth has also been increased<br />

fourfold. However, 10G GPON is not<br />

expected to displace GPON in the near<br />

future; it is more likely to be adopted<br />

for enterprise use, mobile backhaul<br />

and fiber to the building applications.<br />

the ethernet Family<br />

The second branch of the PON family<br />

tree is the Ethernet branch. Ethernet is<br />

also used for active networks.<br />

The first Ethernet PON (EPON) standard<br />

was released by the IEEE a few<br />

months after the GPON standard in<br />

2004. The standard was quickly upgraded<br />

to 1.25 Gbps, twice the original<br />

bandwidth, as new electronic parts<br />

became available.<br />

Networks using that speed are<br />

sometimes called EPON and sometimes<br />

called GEPON (for Gigabit Ethernet<br />

PON). 2.5 GigE equipment started<br />

to be deployed in 2009 and equipment<br />

using 10 GigE in 2010. Like 10G<br />

GPON, 10G EPON is not yet used for<br />

individual residential deployments.<br />

new tyPes oF Ftth<br />

networks<br />

New fiber optic technologies are being<br />

developed to meet new needs. For<br />

example, the RFoG (Radio Frequency<br />

over Glass) and DPoE (DOCSIS Provisioning<br />

over EPON) standards allow<br />

cable providers to use their existing<br />

DOCSIS protocols with all-fiber networks.<br />

RFoG also permits the use of<br />

existing cable devices at the headend<br />

and user premises.<br />

WDM-PON adapts wavelength-division-multiplexing<br />

electronic equipment<br />

developed for the transport portion<br />

of the network for use in the access<br />

network. WDM-PON can provide the<br />

kinds of speeds seen in intercity networks<br />

(currently up to 100 Gbps). Deployment<br />

in homes and businesses,<br />

especially in MDUs, is now occurring.<br />

FTTH CounCil | The Advantages of Optical Access | 31


the Ftth CoUnCil<br />

CertiFiCation Program<br />

The FTTH Council will certify any home installation that<br />

meets its standard – fiber optic cable that extends all the<br />

way to the boundary of the home premises. Certified projects<br />

may display the program’s badge in their advertising.<br />

Certification is important because companies like to<br />

claim they have fiber networks, even when the fiber does<br />

not go all the way to the home. This can lead to consumer<br />

confusion. Consumers sometimes think they are getting<br />

the full benefit of 100-percent fiber broadband when in<br />

fact they are not. Once constituents understand the benefits<br />

of fiber, they will embrace it:<br />

• Consumers will understand the difference between<br />

FTTH and other “fiber networks” that aren’t as good<br />

and will embrace the superior experience of FTTH.<br />

• Communities will understand the benefits that broadband<br />

brings in terms of jobs, wages and direct benefits<br />

such as medical and education ser vices – especially<br />

when delivered in the best possible form – FTTH.<br />

• Investors will understand the benefits to companies<br />

that make the effort to build fiber to the home<br />

networks – in terms of increased customer loyalty,<br />

competitive advantage, return on invested capital<br />

and revenue.<br />

Details and an application form can be found on the Web at<br />

www.FTTHCouncil.org.<br />

1. FTTH, or fiber to the home, identifies a telecommunications<br />

architecture in which a communications path<br />

is provided over optical fiber cables extending from<br />

the telecommunications operator’s switching equipment<br />

to (at least) the boundary of the home living<br />

space or business office space (the side of the building<br />

or unit). This communications path is provided for the<br />

purpose of carrying telecommunications traffic to one<br />

or more subscribers and for delivering one or more<br />

services (for example Internet access, telephony and/<br />

or video-television).<br />

2. For the FTTH Council to certify any service provider’s network<br />

as operating over fiber-to-the-home access and to<br />

grant that service provider use of the <strong>Fiber</strong>-Connected<br />

Home badge, that service provider[, and their network,]<br />

must identify the location, size, and equipment being<br />

used in sufficient detail for the Council to effectively certify<br />

those deployments. The service provider must also<br />

confirm that commercial services are currently being<br />

delivered to revenue-paying subscribers.<br />

3. The service provider must exhibit a high level of commitment<br />

to network-wide FTTH deployment as indicated<br />

by its “Strategic Commitment” to FTTH in its network.<br />

“Strategic Commitment” is defined as the ratio of:<br />

Total number of residential households in service provider’s<br />

serving areas to which services can be marketed<br />

over an FTTH access network (homes passed), divided by<br />

total residential households subscribed to voice, data or<br />

video services, served by service provider’s entire wireline<br />

network (total residential communication subscribers).<br />

This ratio must be 10 percent or higher.<br />

Join the FTTH Council – see page 11<br />

Become a CFHP! Certified <strong>Fiber</strong> to the Home Professional Program – see page 14<br />

To learn more about fiber to the home:<br />

FTTH Council<br />

www.FTTHCouncil.org<br />

1-866-320-6444<br />

info@ftthcouncil.org


Continued from Page 50<br />

generate publicity, the great majority<br />

do not appear on this list. However,<br />

for the first time, the list shows several<br />

telcos that have adopted FTTH<br />

technologies for wireless backhaul<br />

before actually extending fiber to any<br />

homes.<br />

Deploying fiber to cell towers<br />

could prove to be an excellent strategy<br />

for financing buildouts of fiber to<br />

the home. Because many cell towers<br />

are in residential areas, serving cell<br />

towers entails placing a great deal of<br />

fiber very close to residences – which<br />

can radically change the business<br />

case for extending fiber to the home.<br />

Automated meter reading and<br />

other smart-grid applications over<br />

fiber are not yet widespread, but<br />

they, too, could prove important to<br />

the business case for FTTH. Electric<br />

utilities are all exploring a variety of<br />

smart-grid applications, of which the<br />

simplest and most straightforward is<br />

meter reading. Rather than building<br />

their own high-capacity networks<br />

for smart grids, some utilities are<br />

discussing collaboration with telcos<br />

that have suitable networks.<br />

One independent telco, Hancock<br />

Telecom in Indiana, went so far as<br />

to merge with a local electric utility,<br />

Central Indiana Power, in large<br />

part to use its FTTH network as the<br />

smart-grid network. (The merged<br />

entity is now called NineStar Connect.)<br />

Other telcos transmit meter<br />

data to utilities or simply make<br />

meter data available to customers to<br />

help them monitor their own energy<br />

use.<br />

4 Most telcos use GPON technology,<br />

but active Ethernet is also important.<br />

The list BBP published in 2005<br />

included mainly BPON systems,<br />

with a few EPON and one active<br />

Ethernet system. All passive optical<br />

networks deployed today are at the<br />

gigabit standard; GPON deployments<br />

outnumber Gigabit EPON by<br />

about 10 to 1. (BBP is not aware of<br />

any deployments of 10G technology<br />

among independent telcos.)<br />

In addition, most of the older,<br />

pre-gigabit networks have been up-<br />

inDepenDent telcoS<br />

graded. The migration to GPON<br />

was speeded by the availability of<br />

Calix’s auto-sensing optical network<br />

terminals, which allow telcos to upgrade<br />

central-office equipment without<br />

having to replace equipment at<br />

customer premises.<br />

Although passive optical networking<br />

remains the most popular<br />

choice, at least 144 independent<br />

telcos now use active, or point-topoint,<br />

Ethernet. About half of those<br />

have made a companywide commitment<br />

to active Ethernet – in at least<br />

one case (Paxio) to support an openaccess<br />

model, in most other cases<br />

because they believe active Ethernet<br />

has more bandwidth headroom. The<br />

other half use GPON for residential<br />

services in towns and active Ethernet<br />

for sparsely populated areas where<br />

active Ethernet’s longer reach is an<br />

advantage, for business services or<br />

for other special purposes.<br />

A few telcos have deployed RFoG<br />

technology to upgrade HFC plant.<br />

Use of multiple FTTH technologies<br />

has become common – the list<br />

now shows 23 percent of telcos with<br />

multiple technologies, unchanged<br />

from fall 2010. This choice has become<br />

more practical now that more<br />

electronics vendors support multiple<br />

technologies, often from the same<br />

chassis.<br />

5 Several FTTH electronics vendors<br />

compete successfully in the independent<br />

telco market.<br />

Independent telcos differ substantially<br />

from the RBOCs in their dealings<br />

with vendors. RBOCs typically<br />

deal with large, global equipment<br />

vendors that design and manufacture<br />

equipment to their specifica-<br />

FTTH Electronics Vendors Used<br />

Note: Some telcos purchase equipment from multiple vendors.<br />

Calix<br />

Unknown/Undecided<br />

ADTRAN<br />

Enablence<br />

Motorola<br />

CTDI<br />

Alcatel-Lucent<br />

Allied Telesis<br />

Zhone<br />

Tellabs<br />

Hitachi<br />

Ericsson<br />

Cisco<br />

Telco Systems<br />

PacketFront<br />

Ciena<br />

4<br />

3<br />

3<br />

2<br />

1<br />

1<br />

7<br />

16<br />

15<br />

11<br />

11<br />

11<br />

47<br />

57<br />

82<br />

March/april 2011 | www.broadbandproperties.com | BROADBAND PROPERTIES | 83<br />

379<br />

0 50 100 150 200 250 300 350 400<br />

Calix remains the leading electronics vendor in this market, with its market share increasing after the<br />

acquisition of Occam.


tions. The resulting equipment is not<br />

always well-suited to smaller, more<br />

rural markets. The three FTTH<br />

electronics vendors from which Verizon<br />

purchased most of its FTTH<br />

equipment – Alcatel-Lucent, Motorola<br />

and Tellabs – are relatively minor<br />

players in the Tier-2 and Tier-3 telco<br />

market, even though all three have<br />

had significant customer wins (notably<br />

Cincinnati Bell and Optimum<br />

Lightpath, which serve metropolitan<br />

markets).<br />

The great majority of independent<br />

telcos purchase their FTTH<br />

electronics, and often their fiber<br />

management equipment, from vendors<br />

that specialize in serving Tier-2<br />

and Tier-3 telcos. These vendors are<br />

less likely to design equipment for<br />

particular customers; rather, they<br />

supply equipment for a variety of use<br />

cases and help customers configure it<br />

to meet specific needs.<br />

When independent telcos first<br />

began deploying fiber in 2001, nearly<br />

all of them used FTTH electronics<br />

from Optical Solutions Inc. (OSI).<br />

Since Calix acquired OSI in 2005,<br />

it has continued to maintain OSI’s<br />

lead in this market. Calix’s recent<br />

acquisition of Occam Networks, its<br />

strongest rival in the Tier-3 market,<br />

increased its share from three-fifths<br />

to nearly two-thirds of the companies<br />

on the list. Some companies<br />

that supplied FTTH electronics to<br />

independent telcos in the past have<br />

withdrawn from this market.<br />

inDepenDent telcoS<br />

RUS funding became more important for<br />

independent telcos as the stimulus program<br />

replaced private sources that had dried up.<br />

Still, several other vendors are actively<br />

competing in this space, and<br />

more than half the telcos on the list<br />

have bought FTTH electronics from<br />

vendors other than Calix. At least<br />

15 percent have bought FTTH electronics<br />

from multiple vendors (even<br />

if Calix and Occam are counted as a<br />

single entity).<br />

Although press coverage often<br />

refers to independent telcos as if<br />

they were captive customers, this is<br />

far from true. Over the last several<br />

years, an increasing number of telcos<br />

have been willing to mix FTTH<br />

equipment from different vendors.<br />

6 The Rural Utilities Service is playing<br />

a larger role in funding independent<br />

telco FTTH builds.<br />

The RUS <strong>Broadband</strong> Loan program<br />

has been an important source<br />

of FTTH funding since its inception<br />

in 2004. However, many telcos<br />

saw RUS as a last resort, preferring<br />

to use internal funds or deal with local<br />

lenders if possible. In earlier iterations<br />

of this list, around 15 percent<br />

of telcos building fiber to the home<br />

used RUS loan funding.<br />

In the last two years, however,<br />

other funding sources have dried up;<br />

at the same time, the RUS has had<br />

$3.6 billion in broadband stimulus<br />

loans and grants to disburse in addition<br />

to its original loan programs.<br />

The total number of telcos that have<br />

used RUS funding for FTTH projects<br />

doubled over two years to 29<br />

percent last fall before falling to 28<br />

percent in 2011. BBP<br />

The following table shows independent telcos that have constructed FTTH networks or are actively planning them. A<br />

few companies identified as CLECs are non-telco amenity providers in some of the states where they operate. Many<br />

of the companies identified as ILECs are installing FTTH through their CLEC subsidiaries. We’ve made every effort to<br />

update the names of vendors and deployers to reflect mergers and rebrandings. If your company is missing, or if the<br />

information is incomplete, send corrections to masha@broadbandproperties.com. We update this list continually on<br />

www.broadbandproperties.com/search.php<br />

84 | BROADBAND PROPERTIES | www.broadbandproperties.com | March/april 2011<br />

telCOS BuIlDInG<br />

FttH netWOrkS,<br />

By StAte<br />

Our count of independent telco<br />

FTTH networks by state still shows<br />

Iowa in the lead – not surprising,<br />

as Iowa has close to 250 rural telcos,<br />

far more than any other state.<br />

But Minnesota and Texas are close<br />

behind, and BBP has documented<br />

current or pending builds by independent<br />

telcos in 47 states, the District<br />

of Columbia and Puerto Rico.<br />

Only Massachusetts, Delaware and<br />

Rhode Island are missing from the<br />

list – and they are at the epicenter<br />

of Verizon’s FiOS build.<br />

StAte nO.<br />

IA. . . . . . . . . . . 53<br />

MN . . . . . . . . . 41<br />

TX . . . . . . . . . . 39<br />

KS . . . . . . . . . . 30<br />

WI . . . . . . . . . . 28<br />

OH . . . . . . . . . 23<br />

IL . . . . . . . . . . . 22<br />

OR . . . . . . . . . . 21<br />

NE . . . . . . . . . . 21<br />

GA. . . . . . . . . . 20<br />

NY . . . . . . . . . . 20<br />

IN . . . . . . . . . . 17<br />

NC . . . . . . . . . . 16<br />

ND . . . . . . . . . 16<br />

MO . . . . . . . . . 15<br />

SC . . . . . . . . . . 15<br />

ID . . . . . . . . . . 14<br />

AL . . . . . . . . . . 13<br />

CA . . . . . . . . . . 13<br />

CO . . . . . . . . . . 13<br />

MI . . . . . . . . . . 13<br />

SD . . . . . . . . . . 13<br />

KY . . . . . . . . . . 12<br />

OK . . . . . . . . . . 12<br />

AZ . . . . . . . . . . 11<br />

StAte nO.<br />

MT . . . . . . . . . 11<br />

TN . . . . . . . . . . 11<br />

PA . . . . . . . . . . 10<br />

UT . . . . . . . . . . 10<br />

FL . . . . . . . . . . . 9<br />

VA . . . . . . . . . . . 9<br />

AR . . . . . . . . . . . 8<br />

WA . . . . . . . . . . 8<br />

MS . . . . . . . . . . 7<br />

NM . . . . . . . . . . 7<br />

LA . . . . . . . . . . . 6<br />

WV . . . . . . . . . . 6<br />

NV . . . . . . . . . . . 5<br />

AK . . . . . . . . . . . 4<br />

VT . . . . . . . . . . . 4<br />

WY . . . . . . . . . . 4<br />

NH . . . . . . . . . . 4<br />

ME . . . . . . . . . . 3<br />

HI . . . . . . . . . . . 2<br />

MD . . . . . . . . . . 2<br />

CT . . . . . . . . . . . 1<br />

DC . . . . . . . . . . . 1<br />

NJ . . . . . . . . . . . 1<br />

PR . . . . . . . . . . . 1


Provider States vendor –<br />

FttH<br />

electronics<br />

inDepenDent telcoS<br />

Start<br />

Date<br />

Greenfield/replace/<br />

Competitive<br />

Overbuild<br />

3 Rivers Communications MT Calix, Enablence 2006 Replace GPON,<br />

Active Ethernet<br />

technology Services Provider<br />

type<br />

Triple Play ILEC<br />

702 Communications ND, MN Calix Overbuild Active Ethernet Voice, Data,<br />

Business Services<br />

Access2Go IL ADTRAN 2010 Overbuild GPON,<br />

Active Ethernet<br />

Ace Communications Group MN Calix 2010 Active Ethernet ILEC<br />

Adak Telephone AK Calix 2006 Replace GPON Triple Play ILEC<br />

Adams Telephone Cooperative IL Calix 2006 Replace GPON Triple Play ILEC<br />

Albany Mutual Telephone Association MN Enablence 2006 Replace Active Ethernet Triple Play ILEC<br />

Alenco Communications<br />

(Pathway Com-Tel)<br />

TX Calix 2002 Overbuild, Greenfield PON Triple Play ILEC<br />

All West Communications UT Calix 2004 Overbuild GPON Triple Play ILEC<br />

Allband Communications Cooperative MI Calix 2005 Greenfield GPON Triple Play,<br />

Security<br />

Allendale Communications MI Enablence 2005 Greenfield Active Ethernet Triple Play ILEC<br />

Alliance Communications SD Calix 2006 Replace GPON Voice, Data ILEC<br />

Allo Communications NE Calix 2005 Overbuild GPON,<br />

Active Ethernet<br />

Triple Play,<br />

Business Services<br />

Alma Communications MO Enablence, Calix 2006 Replace GPON Triple Play ILEC<br />

Alpine Communications IA Calix 2007 Replace Active Ethernet Voice, Data ILEC<br />

Amherst Telephone Company WI 2009 Replace Active Ethernet Triple Play ILEC<br />

Arcadia Telephone Cooperative IA Calix 2010 GPON,<br />

Active Ethernet<br />

Armstrong Telephone PA GPON,<br />

Active Ethernet<br />

March/april 2011 | www.broadbandproperties.com | BROADBAND PROPERTIES | 85<br />

CLEC<br />

CLEC<br />

ILEC<br />

CLEC<br />

ILEC<br />

Voice, Data ILEC<br />

Arthur Mutual Telephone OH ADTRAN 2010 Overbuild Active Ethernet ILEC<br />

Arvig Communications (East Otter Tail) MN Calix 1995 Replace, Greenfield GPON Triple Play ILEC<br />

Astound <strong>Broadband</strong> CA CTDI 2004 Replace EPON Voice, Data CLEC<br />

ATC Communications ID Calix 2008 GPON Triple Play ILEC<br />

ATMC NC Motorola, Calix 2005 Greenfield BPON, GPON Triple Play ILEC<br />

Aztech Cable AZ Calix Overbuild GPON Triple Play CLEC<br />

Baldwin Telecom WI Calix 2002 Greenfield GPON Triple Play ILEC<br />

Ballard Telephone KY Calix 2008 Replace GPON Triple Play ILEC<br />

Baraga Telephone MI Calix GPON Triple Play ILEC<br />

Barry County Telephone MI Calix GPON ILEC<br />

Bascom Mutual Telephone Company OH Calix 2003 Overbuild BPON Triple Play ILEC<br />

BayRing Communications NH ADTRAN 2010 Overbuild GPON Voice, Data CLEC<br />

Beaver Creek Cooperative<br />

Telephone Company<br />

OR Replace ILEC<br />

Beehive Telephone UT Replace ILEC<br />

BEK Communications ND Calix, Cisco 2004 Replace GPON,<br />

Active Ethernet<br />

Triple Play ILEC<br />

Ben Lomand Telephone Co-op TN Calix, 2006 Replace Active Ethernet Triple Play ILEC<br />

Benkelman Telephone Company<br />

(Wauneta Telephone, BW Telcom)<br />

Benton Cooperative Telephone<br />

Company (Milaca Local Link)<br />

NE Calix 2009 GPON ILEC<br />

MN Calix, CTDI 2005 Greenfield GPON, EPON Triple Play ILEC<br />

Benton Ridge Telephone Company OH Calix 2010 Replace Active Ethernet Triple Play ILEC


Provider States vendor –<br />

FttH<br />

electronics<br />

inDepenDent telcoS<br />

Start<br />

Date<br />

Greenfield/replace/<br />

Competitive<br />

Overbuild<br />

86 | BROADBAND PROPERTIES | www.broadbandproperties.com | March/april 2011<br />

technology Services Provider<br />

type<br />

Bernard Telephone Company IA 2010 Replace Voice, Data ILEC<br />

BEVCOMM<br />

(Eckles Telephone Company)<br />

MN Calix 2007 Greenfield Active Ethernet Triple Play ILEC<br />

Big Bend Telephone TX Calix, Enablence 2005 Replace GPON,<br />

Active Ethernet<br />

Voice, Data ILEC<br />

Big River Telephone MO ADTRAN GPON CLEC<br />

Blair Telephone (HunTel) NE Calix GPON ILEC<br />

Blanca Telephone Company<br />

(Jade Communications)<br />

CO Tellabs 2006 Replace PON ILEC<br />

Bloomer Telephone WI Calix 2007 Replace GPON,<br />

Active Ethernet<br />

Triple Play ILEC<br />

Blossom Telephone Company TX Calix 2010 Replace ILEC<br />

Blue Valley Tele-Communications KS Tellabs 2006 Replace GPON Triple Play ILEC<br />

Border to Border Communications TX Calix, CTDI 2004 Replace BPON, EPON Triple Play ILEC<br />

Brantley Telephone GA Calix 2007 Replace GPON Triple Play ILEC<br />

Brazoria Telephone Company TX Alcatel-Lucent 2008 Greenfield GPON Triple Play ILEC<br />

Bretton Woods Telephone Company NH 2009 Replace Voice, Data ILEC<br />

<strong>Broadband</strong> Associates CA Overbuild CLEC<br />

BroadStar NC 2005 Greenfield Triple Play,<br />

Security<br />

Bruce Telephone Company MS 2009 Replace ILEC<br />

BTC (Breda Telephone Corp.,<br />

Western Iowa Networks)<br />

BTC <strong>Broadband</strong><br />

(Bixby Telephone Company)<br />

IA 2008 Overbuild Triple Play ILEC<br />

OK Calix 2005 Greenfield, Replace GPON Triple Play ILEC<br />

Buckeye Telesystem OH Calix, CTDI 2006 Overbuild, Replace,<br />

Greenfield<br />

CLEC<br />

GPON, RFoG Voice, Data CLEC<br />

Buckland Telephone Company OH Calix 2005 Replace GPON Triple Play ILEC<br />

Buggs Island Telephone Cooperative VA Calix 2009 GPON ILEC<br />

Bulloch Telephone Cooperative GA Motorola, Calix 2005 Replace PON Triple Play ILEC<br />

Butler-Bremer Communications IA 2008 Replace Active Ethernet Triple Play ILEC<br />

Calaveras Telephone CA Calix 2006 Greenfield GPON Triple Play ILEC<br />

Cal-Ore Communications OR Calix 2005 Greenfield GPON Triple Play ILEC<br />

Cambridge Telephone ID Calix 2005 Replace GPON Triple Play ILEC<br />

Cambridge Telephone Company NE Enablence 2009 Replace Active Ethernet Triple Play ILEC<br />

Cameron Communications (LBH LLC) LA Calix 2004 Replace, Overbuild GPON Triple Play ILEC<br />

Canby Telcom OR Calix 2006 Greenfield, Replace GPON Triple Play ILEC<br />

Cap Rock Telephone Cooperative TX Calix 2005 Greenfield GPON Triple Play ILEC<br />

Cascade Communications<br />

(formerly Cascade Telephone)<br />

IA Calix 2010 GPON ILEC<br />

Cass Communications IL 2010 Replace Triple Play ILEC<br />

Centennial de Puerto Rico PR Calix 2007 Replace Active Ethernet Voice, Data CLEC<br />

Central Scott Telephone IA Calix 2007 Overbuild GPON,<br />

Active Ethernet<br />

Central Texas Technologies TX CTDI 2002 Greenfield EPON Triple Play CLEC<br />

CenturyLink AL, CO, MI,<br />

MO, WI,<br />

Others<br />

Calix, ADTRAN Greenfield GPON Triple Play,<br />

Mobile Backhaul<br />

ILEC<br />

ILEC


» Distribution and Logistics<br />

» Extensive Integration Services<br />

(Assemble, Wire, Test)<br />

» Engineering Services<br />

» Nationwide Installation Services<br />

» <strong>Fiber</strong> Deployment Strategies<br />

» IP Appliance Confi guration<br />

Services<br />

» RUS Approved Products<br />

» Electronic Data Interchange<br />

(“EDI”)<br />

» Personal Attention from Inside<br />

and Outside Sales Teams<br />

» Small Women Owned Business<br />

Qualifi cation<br />

» Customer Asset Management<br />

Program (CAMP)<br />

Walker has the products, solutions, experience and expertise to provide you maximum<br />

opportunities in all your broadband initiatives.<br />

Contact us today to learn about our <strong>Broadband</strong> Stimulus Readiness Programs!


Provider States vendor –<br />

FttH<br />

electronics<br />

Champaign Telephone<br />

(CT Communications)<br />

inDepenDent telcoS<br />

OH Calix, Allied<br />

Telesis<br />

Start<br />

Date<br />

Greenfield/replace/<br />

Competitive<br />

Overbuild<br />

Replace GPON,<br />

Active Ethernet<br />

Chariton Valley Telecom Corporation MO Enablence, Calix 2003 Replace, Overbuild GPON,<br />

Active Ethernet<br />

Chazy Westport Communications<br />

(Westelcom)<br />

Chequamegon Communications<br />

Cooperative<br />

88 | BROADBAND PROPERTIES | www.broadbandproperties.com | March/april 2011<br />

technology Services Provider<br />

type<br />

Triple Play ILEC<br />

Triple Play ILEC<br />

NY Calix 2009 Replace, Overbuild Active Ethernet Triple Play ILEC<br />

WI 2010 Triple Play ILEC<br />

Chesnee Telephone SC Calix Greenfield GPON Triple Play ILEC<br />

Cheyenne River Sioux Tribe<br />

Telephone Authority<br />

SD Calix GPON ILEC<br />

Chickamauga Telephone GA Calix 2008 GPON ILEC<br />

Chickasaw Telecom Services OK Calix 2010 GPON Voice, Data,<br />

Business Services<br />

ChoiceTEL Communications WI ADTRAN 2008 Overbuild GPON Triple Play CLEC<br />

Christensen Communications MN Calix 2008 Replace BPON, GPON Triple Play ILEC<br />

Cimarron Telephone OK Calix 2008 GPON ILEC<br />

Cincinnati Bell OH, KY Alcatel-Lucent,<br />

Motorola<br />

ILEC<br />

2009 Replace GPON Triple Play ILEC<br />

Cinergy MetroNet IN Alcatel-Lucent 2005 Overbuild BPON Triple Play CLEC<br />

Citizens Mutual IA Calix 2006 Replace GPON Triple Play ILEC<br />

Citizens Telephone Company GA CTDI, Cisco 2008 Replace EPON, GPON Triple Play ILEC<br />

Citizens Telephone Company of<br />

Kecksburg<br />

PA Calix 2005 Replace PON Triple Play ILEC<br />

Citizens Telephone Coop WI Calix GPON ILEC<br />

Citizens Telephone Cooperative VA Calix 2004 Replace GPON Triple Play ILEC<br />

CityNet WV, OH ADTRAN 2010 Replace GPON CLEC<br />

Clarence Telephone IA Calix BPON, GPON ILEC<br />

Clarks Telecommunications (Northeast<br />

Nebraska Telephone Company)<br />

NE Calix 2009 Replace Active Ethernet Triple Play ILEC<br />

Clear Creek Telephone & TeleVision OR Calix 2009 GPON Triple Play ILEC<br />

Clear Lake Telephone IA Calix 2008 Replace GPON Triple Play ILEC<br />

Clearwave Communications IL Calix GPON CLEC<br />

C-M-L Telephone Cooperative<br />

Association<br />

Cochrane Cooperative<br />

Telephone Company<br />

IA Calix 2010 Replace Triple Play ILEC<br />

WI Calix 2010 Replace GPON Triple Play ILEC<br />

Colo Telephone Company IA Calix 2005 Replace GPON Triple Play ILEC<br />

Columbus Telephone Company KS Enablence 2004 Replace EPON Triple Play ILEC<br />

Communications 1 Network IA Calix 2008 Replace GPON Triple Play ILEC<br />

Comporium Communications<br />

(Lancaster Telephone)<br />

SC Enablence 2004 Greenfield EPON, GPON Triple Play ILEC<br />

ComSouth Telecommunications GA Calix, Motorola 2005 Greenfield, Replace GPON Triple Play ILEC<br />

ComSpan USA OR Hitachi 2005 Overbuild GPON Triple Play CLEC<br />

Connections Etc. (Sherburne County<br />

Rural Telephone Co./Iowa Telecom)<br />

Consolidated Communications Inc. IL, TX Zhone<br />

Technologies<br />

Consolidated Telcom<br />

(Consolidated Enterprises)<br />

MN Calix 2008 GPON ILEC<br />

2007 GPON Triple Play ILEC<br />

ND Calix 2006 Replace GPON,<br />

Active Ethernet<br />

Triple Play ILEC


Provider States vendor –<br />

FttH<br />

electronics<br />

Consolidated Telecommunications<br />

Company<br />

inDepenDent telcoS<br />

Start<br />

Date<br />

Greenfield/replace/<br />

Competitive<br />

Overbuild<br />

MN Calix 2005 Overbuild GPON,<br />

Active Ethernet<br />

technology Services Provider<br />

type<br />

Triple Play, Mobile<br />

Backhaul<br />

Consolidated Telephone Co. NE ADTRAN 2010 Replace GPON Triple Play ILEC<br />

Conxxus (Illicom Telecommunications) IL Enablence 2001 Overbuild EPON Triple Play CLEC<br />

Cooperative Telephone Exchange IA Calix 2006 Replace Active Ethernet Triple Play ILEC<br />

Cordova Telephone Cooperative AK 2010 Replace Voice, Data ILEC<br />

Corn Belt Telephone IA 2008 Replace Triple Play ILEC<br />

CP-Tel LA Calix 2004 Greenfield BPON, GPON Triple Play ILEC<br />

Craigville Telephone Company IN Calix 2006 Overbuild GPON Triple Play ILEC<br />

Craw-Kan Telephone Cooperative KS ADTRAN GPON ILEC<br />

Cross Communications OK Calix GPON Triple Play ILEC<br />

CSS Communications WA CTDI 2003 Replace EPON Triple Play CLEC<br />

CT Communications NC Enablence 2005 Greenfield EPON Voice, Data ILEC<br />

CTS Telecom<br />

(Climax Telephone Company)<br />

MI ADTRAN 2010 GPON Voice, Data ILEC<br />

Cunningham Telephone and Cable KS 2009 Replace Voice, Data ILEC<br />

Custer Telephone Cooperative ID Calix 2006 Replace GPON,<br />

Active Ethernet<br />

March/april 2011 | www.broadbandproperties.com | BROADBAND PROPERTIES | 89<br />

ILEC<br />

Triple Play ILEC<br />

D&E Communications PA Calix 2008 GPON ILEC<br />

D&P Communications (Deerfield<br />

Farmers’ Telephone Company)<br />

MI Motorola 2008 GPON Triple Play ILEC<br />

Dakota Central Telecom ND Calix, 2002 Replace, Overbuild GPON Triple Play ILEC<br />

Darien Telephone GA Calix GPON Voice, Data ILEC<br />

Daystarr Communications MI Calix 2008 Overbuild GPON CLEC<br />

Delhi Communications NY Enablence 2009 Replace Active Ethernet Triple Play ILEC<br />

DFT Communications (Dunkirk &<br />

Fredonia Telephone Co.)<br />

NY Calix, ADTRAN Overbuild GPON Voice, Data ILEC<br />

Dickey Rural Networks ND, SD Calix 2004 Replace GPON Triple Play ILEC<br />

Diller Telephone Company NE ADTRAN 2009 Replace GPON Voice, Data ILEC<br />

Direct Communications OR, WA,<br />

ID, UT<br />

Calix Greenfield BPON, GPON Voice, Data ILEC<br />

Dobson Telephone OK Calix GPON ILEC<br />

Doylestown Telephone Company OH Overbuild Triple Play ILEC<br />

DTC Communications (DeKalb<br />

Telephone Cooperative)<br />

TN 2008 Active Ethernet Voice, Data ILEC<br />

Dumont Telephone Company IA Hitachi 2006 Replace GPON Triple Play ILEC<br />

Duo County Telephone Cooperative KY 2010 Replace Triple Play ILEC<br />

EasyTel Communications OK Calix 2005 Overbuild PON Triple Play CLEC<br />

EATEL LA Alcatel-Lucent,<br />

Calix<br />

Egyptian Telephone<br />

Cooperative Association<br />

Ellsworth Cooperative<br />

Telephone Association<br />

Emily Cooperative<br />

Telephone Company<br />

2004 Greenfield, Replace BPON, GPON Triple Play ILEC<br />

IL Calix 2010 GPON,<br />

Active Ethernet<br />

Voice, Data ILEC<br />

IA 2010 Replace Voice, Data ILEC<br />

MN 2007 Triple Play ILEC<br />

Endeavor Communications IN Calix 2006 Replace GPON Triple Play ILEC<br />

Enhanced Telecommunications<br />

Corporation<br />

IN Calix 2004 Replace GPON Triple Play ILEC


Provider States vendor –<br />

FttH<br />

electronics<br />

inDepenDent telcoS<br />

Start<br />

Date<br />

Greenfield/replace/<br />

Competitive<br />

Overbuild<br />

90 | BROADBAND PROPERTIES | www.broadbandproperties.com | March/april 2011<br />

technology Services Provider<br />

type<br />

ENMR-Plateau Telecommunications NM Calix 2003 Replace GPON Voice, Data ILEC<br />

En-Touch Systems TX Enablence 2006 Greenfield EPON Triple Play,<br />

Security,<br />

Home Automation,<br />

Meter Reading<br />

Epic Touch<br />

(Elkhart Telephone Company)<br />

KS Enablence, Calix 2005 Replace EPON, GPON Triple Play ILEC<br />

Etex Telephone Cooperative TX Calix, Enablence 2002 Overbuild GPON,<br />

Active Ethernet<br />

Evertek (<strong>Fiber</strong>Comm) IA GPON,<br />

Active Ethernet<br />

CLEC<br />

Triple Play ILEC<br />

Voice, Data ILEC<br />

F&B Communications IA Calix Overbuild BPON, GPON Triple Play ILEC<br />

FairPoint Communications WA, MANY Calix Greenfield GPON ILEC<br />

Falcon <strong>Broadband</strong> CO Hitachi 2005 Greenfield, Overbuild GPON Triple Play CLEC<br />

Farber Telephone Company MO 2008 Replace Voice, Data ILEC<br />

Farmers and Merchants Mutual<br />

Telephone Company<br />

Farmers Independent<br />

Telephone Company<br />

IA Calix 2007 BPON, GPON Triple Play ILEC<br />

WI Calix 2010 GPON Triple Play ILEC<br />

Farmers Mutual ID Calix Replace BPON, GPON Triple Play ILEC<br />

Farmers Mutual MN Calix Replace GPON Triple Play ILEC<br />

Farmers Mutual Cooperative<br />

Telephone Company<br />

Farmers Mutual Telephone Company<br />

(OmniTel Communications)<br />

Farmers Telecommunications<br />

Cooperative<br />

IA 2007 Replace Triple Play ILEC<br />

IA ADTRAN 2010 Replace Active Ethernet Triple Play ILEC<br />

AL Calix 2007 Greenfield, Replace Active Ethernet Voice, Data ILEC<br />

Farmers Telephone Cooperative SC Calix 2006 Greenfield, Replace GPON,<br />

Active Ethernet<br />

FEC Communications<br />

(Connextions Telecom)<br />

TX Calix 2006 Greenfield GPON,<br />

Active Ethernet<br />

Triple Play ILEC<br />

Triple Play CLEC<br />

Federated Telephone MN Calix 1996 Replace, Overbuild GPON Triple Play ILEC<br />

Fenton Cooperative<br />

Telephone Company<br />

IA Calix 2009 GPON Voice, Data ILEC<br />

<strong>Fiber</strong>Net WV, OH Calix 2007 Overbuild BPON, GPON Voice, Data, Videoconferencing<br />

Fidelity Telephone MO Calix BPON, GPON,<br />

Active Ethernet<br />

Filer Mutual ID ADTRAN, Calix Replace GPON ILEC<br />

Foothills Rural Telephone Coop KY Alcatel-Lucent 2004 Greenfield, Replace BPON,<br />

Active Ethernet<br />

CLEC<br />

ILEC<br />

Triple Play ILEC<br />

Fort Jennings Telephone Company OH Calix 2004 Replace, Overbuild GPON Triple Play ILEC<br />

Fort Mojave Telecommunications AZ Calix 2008 Greenfield, Replace GPON Voice, Data ILEC<br />

Frontier Communications Many Calix Greenfield BPON, GPON Voice, Data ILEC<br />

FTTH Communications MN Calix 2002 Greenfield GPON Triple Play CLEC<br />

Fulton Telephone Company MS Calix 2010 GPON Mobile Backhaul ILEC<br />

Ganado Telephone TX Calix 2008 Replace Active Ethernet Voice, Data ILEC<br />

Garden Valley Telephone MN Calix 2005 Replace BPON, GPON Triple Play ILEC<br />

Gardonville Cooperative<br />

Telephone Association<br />

MN 2006 Replace ILEC<br />

General Communications AK Calix Replace GPON Voice, Data CLEC


Provider States vendor –<br />

FttH<br />

electronics<br />

inDepenDent telcoS<br />

Start<br />

Date<br />

Greenfield/replace/<br />

Competitive<br />

Overbuild<br />

92 | BROADBAND PROPERTIES | www.broadbandproperties.com | March/april 2011<br />

technology Services Provider<br />

type<br />

Geneseo Telephone Calix 2010 GPON Voice, Data ILEC<br />

Geneva <strong>Broadband</strong> NE Calix 2009 Overbuild GPON Voice, Data CLEC<br />

Gervais Telephone OR Calix 2001 Replace, Overbuild GPON Triple Play ILEC<br />

Gila River Telecommunications AZ Calix BPON, GPON ILEC<br />

Glasford Telephone Company IL ADTRAN Greenfield GPON Voice, Data ILEC<br />

Glenwood Telephone NE Calix 2007 Replace BPON, GPON Triple Play ILEC<br />

Global Valley Networks CA 2005 Greenfield PON Voice, Data ILEC<br />

Golden Belt Telephone Association KS Calix 2008 Replace Active Ethernet Triple Play ILEC<br />

Golden West Telephone Company SD Calix 2004 Replace GPON Voice, Data ILEC<br />

Goldfield Telephone Company IA 2007 Replace, Overbuild Triple Play ILEC<br />

Gorham Telephone KS Calix 2007 Replace GPON Triple Play ILEC<br />

Granby Telephone Company<br />

(GTC <strong>Broadband</strong>)<br />

Grand Mound Cooperative<br />

Telephone Association<br />

MO Calix 2009 Replace Active Ethernet Triple Play ILEC<br />

IA Calix 2005 Replace, Overbuild PON Triple Play ILEC<br />

Grand River Mutual Telephone Corp. MO, IA 2009 Replace ILEC<br />

Grande Communications TX Ericsson, Calix 2005 Overbuild PON, GPON Triple Play CLEC<br />

Granite State Telephone (GSInet) NH 2007 Greenfield, Replace Voice, Data ILEC<br />

Great Plains Communications NE Enablence,<br />

ADTRAN<br />

2007 Greenfield, Replace GPON Voice, Data ILEC<br />

Greenfield Communications AZ, CA Calix, CTDI 2005 Greenfield GPON, EPON Triple Play CLEC<br />

Gridley Telephone IL Calix 2006 BPON, GPON Triple Play ILEC<br />

GTel Teleconnections<br />

(Germantown Telephone)<br />

NY Calix 2008 Replace GPON Triple Play, Videoconferencing<br />

Gulfpines Communications MS Calix GPON ILEC<br />

GVTC Communications TX Calix 2004 Greenfield, Replace,<br />

Overbuild<br />

GPON Triple Play,<br />

Security<br />

H&B Communications KS Calix GPON ILEC<br />

Halstad Telephone Company ND, MN Calix 2010 Replace GPON,<br />

Active Ethernet<br />

ILEC<br />

ILEC<br />

Triple Play ILEC<br />

Hamilton County Communications IL 2010 Replace Triple Play ILEC<br />

Harbor Communications AL ADTRAN Overbuild GPON Voice, Data CLEC<br />

Hardy Telecommunications WV Zhone<br />

Technologies<br />

2011 Replace GPON Triple Play ILEC<br />

Hargray Communications SC CTDI, Calix 2004 Greenfield EPON, GPON Triple Play ILEC<br />

Harrisonville Telephone IL Calix 2007 Greenfield BPON, GPON Triple Play ILEC<br />

Hartelco NE 2009 Replace GPON,<br />

Active Ethernet<br />

Voice, Data ILEC<br />

Hartington Telephone Company NE 2009 Replace Triple Play ILEC<br />

Hawaiian Telecom HI Alcatel-Lucent 2006 Greenfield, Replace GPON Triple Play ILEC<br />

Hayneville Telephone AL Enablence 2008 Overbuild GPON Triple Play ILEC<br />

Heart of Iowa<br />

Communications Cooperative<br />

Hershey Cooperative<br />

Telephone Company<br />

IA Calix 2005 Replace BPON, GPON Triple Play ILEC<br />

NE ADTRAN 2010 GPON ILEC<br />

Hiawatha <strong>Broadband</strong> MN Calix 2005 Overbuild GPON, RFoG Triple Play CLEC<br />

Hiawatha Telephone Company MI 2010 Replace Voice, Data ILEC<br />

Hickory Tech (Enventis) MN, WI Calix, Motorola 2002 BPON, GPON,<br />

Active Ethernet<br />

Triple Play ILEC


Provider States vendor –<br />

FttH<br />

electronics<br />

Hickory Telephone PA Zhone<br />

Technologies<br />

inDepenDent telcoS<br />

Start<br />

Date<br />

Greenfield/replace/<br />

Competitive<br />

Overbuild<br />

technology Services Provider<br />

type<br />

2009 Replace GPON Triple Play ILEC<br />

Highland Telephone Cooperative TN, KY Calix 2008 GPON Triple Play ILEC<br />

Highland Telephone Cooperative VA Enablence 2007 GPON Triple Play ILEC<br />

Hill Country Telephone Cooperative TX Calix 2007 Greenfield, Replace GPON,<br />

Active Ethernet<br />

Triple Play,<br />

Security<br />

Hinton Telephone OK Calix 2002 BPON ILEC<br />

Home Communications<br />

(Home Telephone Company)<br />

KS Replace Triple Play ILEC<br />

Home Telephone SC Calix 2001 Greenfield GPON Triple Play ILEC<br />

Home Telephone IL Calix, ADTRAN 2006 Greenfield GPON, RFOG Voice, Data ILEC<br />

Home Town Telephone<br />

(Home Town Cable Plus)<br />

FL Calix 2004 Greenfield GPON Triple Play,<br />

Security<br />

Hood Canal Telephone Company WA Motorola 2004 Replace PON Triple Play ILEC<br />

Horizon Chillicothe Telephone<br />

(Horizon Telcom)<br />

OH Calix, 2007 GPON,<br />

Active Ethernet<br />

Horry Telephone Coop SC Motorola, Calix 2004 Greenfield, Replace PON, GPON,<br />

Active Ethernet<br />

Hospers Telephone Exchange<br />

(HTC Communications)<br />

Hotwire Communications FL, VA, NJ,<br />

NY, PA, GA,<br />

SC, NC, MD<br />

March/april 2011 | www.broadbandproperties.com | BROADBAND PROPERTIES | 93<br />

ILEC<br />

CLEC<br />

Triple Play ILEC<br />

Triple Play ILEC<br />

IA Calix 2010 Replace Triple Play ILEC<br />

Calix, Motorola Greenfield, Overbuild GPON Triple Play, Home<br />

Automation<br />

Hunter Communications OR Calix 2010 GPON,<br />

Active Ethernet<br />

CLEC<br />

Voice, Data CLEC<br />

Huxley Telephone IA Calix 2001 Replace, Overbuild PON Triple Play ILEC<br />

IAMO Telephone IA, MO ADTRAN 2010 Replace Active Ethernet Voice, Data ILEC<br />

iCornerstone GA CTDI 2004 Greenfield EPON Triple Play CLEC<br />

IdeaOne Telecom Group ND Calix 2002 Overbuild GPON,<br />

Active Ethernet<br />

Indiantown Telephone System<br />

(ITS Telecom)<br />

Triple Play,<br />

Business Services<br />

FL Calix 2006 Greenfield GPON Triple Play, Mobile<br />

Backhaul<br />

Industry Telephone Company TX Calix 2010 GPON Mobile Backhaul ILEC<br />

InterBel Telephone Cooperative MT Triple Play ILEC<br />

Interstate Communications<br />

(Southwest Telephone Exchange,<br />

Interstate 35 Telephone Company)<br />

IA Calix 2010 Replace GPON Triple Play ILEC<br />

Interstate Telecommunications<br />

SD Calix 2006 Replace, Overbuild BPON, GPON, Triple Play ILEC<br />

Cooperative (SS Telecom)<br />

Active Ethernet<br />

Jaguar Communications MN Calix 2006 Overbuild GPON Triple Play CLEC<br />

James Valley Cooperative<br />

Telephone Company<br />

SD Replace, Overbuild Triple Play ILEC<br />

JBN Telephone Company KS 2010 Replace Voice, Data ILEC<br />

Johnson Telephone Company MN Calix 2008 GPON Triple Play ILEC<br />

Kalida Telephone OH Calix GPON ILEC<br />

Kalona Cooperative<br />

IA 2009 Replace GPON, Triple Play ILEC<br />

Telephone Compan<br />

Active Ethernet<br />

Kanokla Telephone KS Calix, Zhone<br />

GPON, Voice, Data ILEC<br />

Technologies<br />

Active Ethernet<br />

Kaplan Telephone LA Calix 2005 Replace GPON Triple Play ILEC<br />

Kerman Telephone Company CA Active Ethernet Voice, Data ILEC<br />

CLEC<br />

ILEC


Provider States vendor –<br />

FttH<br />

electronics<br />

inDepenDent telcoS<br />

Start<br />

Date<br />

Greenfield/replace/<br />

Competitive<br />

Overbuild<br />

94 | BROADBAND PROPERTIES | www.broadbandproperties.com | March/april 2011<br />

technology Services Provider<br />

type<br />

KMTelecom MN 2008 Replace ILEC<br />

Knology<br />

(acquired Sunflower <strong>Broadband</strong>)<br />

La Jicarita Rural Telephone<br />

Cooperative<br />

AL, GA, TN,<br />

FL, SC, KS<br />

Ericsson, 2005 (K),<br />

Enablence, Calix, 2003 (S)<br />

Motorola<br />

Greenfield, Replace,<br />

Overbuild<br />

EPON, GPON, RFoG Triple Play,<br />

Business Services<br />

NM 2010 Replace Voice, Data ILEC<br />

Lackawaxen Telephone PA Calix 2010 GPON Voice, Data ILEC<br />

LaHarpe Telephone KS Calix 2006 Replace GPON Triple Play ILEC<br />

Lakeland Communications WI Calix 2010 GPON,<br />

Active Ethernet<br />

CLEC<br />

Triple Play ILEC<br />

Laurel Highland Total Communications<br />

(Laurel Highland Telephone,<br />

Yukon Waltz)<br />

PA ADTRAN, Calix 2003 Replace GPON Triple Play ILEC<br />

Lavalle Telephone Cooperative WI Calix 2006 Greenfield Active Ethernet Triple Play ILEC<br />

LaWard Telephone Exchange TX ADTRAN 2010 Replace GPON Voice, Data ILEC<br />

Leaco Rural Telephone Cooperative NM Calix 2010 GPON Voice, Data ILEC<br />

Lehigh Valley Cooperative<br />

Telephone Association<br />

IA Calix GPON ILEC<br />

Lemonweir Valley Telephone WI Calix 2008 Replace GPON Triple Play ILEC<br />

Lexcom NC CTDI, Enablence 2007 Replace RFoG, EPON Triple Play ILEC<br />

Liberty Communications IA Calix, 2008 Replace GPON Triple Play ILEC<br />

Ligonier Telephone IN Calix 2008 Replace GPON Triple Play ILEC<br />

Lincoln County Telephone System NV Alcatel-Lucent 2008 Greenfield, Replace GPON Triple Play,<br />

Security<br />

ILEC<br />

Lincoln Telephone MT Calix GPON ILEC<br />

LISCO IA Calix 2005 Overbuild Active Ethernet Triple Play CLEC<br />

Lismore Cooperative<br />

Telephone Company<br />

MN 2010 Replace Active Ethernet Voice, Data ILEC<br />

Litestream Technologies FL Calix 2002 Greenfield PON Triple Play,<br />

Security<br />

CLEC<br />

Long Island <strong>Fiber</strong> Exchange NY 2007 Overbuild Active Ethernet Voice, Data,<br />

Business Services<br />

CLEC<br />

Long Lines NE Enablence 2007 Overbuild EPON Triple Play ILEC<br />

Lonsdale Telephone MN Calix GPON ILEC<br />

Loretel Systems MN Calix 2009 GPON Triple Play ILEC<br />

Loretto Telephone TN Calix 2010 GPON,<br />

Active Ethernet<br />

Voice, Data ILEC<br />

Lost Nation-Elwood Telephone IA Calix GPON ILEC<br />

Mabel Telephone Cooperative MN Enablence 2006 Replace PON Triple Play ILEC<br />

Madison Telephone KS Calix 2009 Replace GPON,<br />

Active Ethernet<br />

Voice, Data ILEC<br />

Mahaska Communications Group IA Calix 2004 Overbuild GPON,<br />

Active Ethernet<br />

Triple Play CLEC<br />

Mainstay Communications (Henderson<br />

Cooperative Telephone Company)<br />

NE 2009 Replace Triple Play ILEC<br />

Manawa Telephone WI Calix 2010 GPON Voice, Data ILEC<br />

Manti Tele Communication Company UT Enablence 2008 Replace Active Ethernet Triple Play ILEC<br />

Margaretville Telephone Company NY CTDI 2007 Overbuild RFoG Triple Play ILEC<br />

Marquette-Adams<br />

Telephone Cooperative<br />

WI Calix 2008 Replace, Overbuild GPON,<br />

Active Ethernet<br />

Triple Play ILEC


Provider States vendor –<br />

FttH<br />

electronics<br />

Matanuska Telephone Association AK Calix, ADTRAN,<br />

Telco Systems<br />

inDepenDent telcoS<br />

Start<br />

Date<br />

Greenfield/replace/<br />

Competitive<br />

Overbuild<br />

96 | BROADBAND PROPERTIES | www.broadbandproperties.com | March/april 2011<br />

technology Services Provider<br />

type<br />

2007 Greenfield, Replace BPON, GPON Triple Play,<br />

Mobile Backhaul,<br />

Business Services<br />

McClure Telephone Company OH Enablence 2006 Replace GPON Triple Play ILEC<br />

McDonald County<br />

Telephone Company<br />

MO Enablence, Calix 2009 Replace Triple Play ILEC<br />

McDonough Telephone Cooperative IL Calix 2007 Replace GPON Triple Play ILEC<br />

Medicine Park Telephone Company OK, TX Motorola 2008 Greenfield, Replace GPON Triple Play ILEC<br />

Melrose Telephone Company<br />

(diversiCOM)<br />

MN 2009 Replace Triple Play ILEC<br />

Metrostat Communications NC CTDI 2006 Overbuild EPON Voice, Data CLEC<br />

Mid Century Telephone Cooperative IL ADTRAN 2007 Replace GPON Triple Play ILEC<br />

Middleburgh Telephone Company NY Calix, Motorola 2008 Replace GPON Triple Play ILEC<br />

Mid-Plains Rural<br />

Telephone Cooperative<br />

TX Calix 2008 Replace GPON Voice, Data ILEC<br />

Mid-Rivers Communications MT Calix 2010 Replace Active Ethernet Triple Play ILEC<br />

Midstate Communications SD Calix 2008 Replace Active Ethernet Triple Play ILEC<br />

Midstate Telephone ND Calix GPON ILEC<br />

Midvale Telephone AZ, ID Calix 2006 Greenfield, Overbuild BPON, GPON Voice, Data ILEC<br />

Minburn Telephone IA Calix Replace BPON, GPON Triple Play ILEC<br />

Minford Telephone Company OH Calix 2009 GPON ILEC<br />

Minnesota Valley Telephone MN Calix GPON ILEC<br />

Missouri Telephone MO Allied Telesis 2006 Greenfield Active Ethernet Triple Play ILEC<br />

Moapa Valley Telephone Company NV ADTRAN 2010 GPON ILEC<br />

MoKan Dial KS, MO Calix BPON ILEC<br />

Molalla Communications Company OR Calix, ADTRAN 2004 Greenfield GPON,<br />

Active Ethernet<br />

Momentum AL Alcatel-Lucent 2007 Greenfield GPON Triple Play,<br />

Security<br />

Monitor Cooperative<br />

Telephone Company<br />

ILEC<br />

Voice, Data ILEC<br />

OR 2009 Replace Voice, Data ILEC<br />

Monon Telephone Company IN Calix 2009 GPON ILEC<br />

Monroe Telephone Company OR ADTRAN, Calix 2010 GPON Triple Play ILEC<br />

Montana Opticom<br />

(Lightnex Communications, Vivid)<br />

Moore and Liberty, Griggs<br />

County Telephone/Internet<br />

Communications<br />

Mosaic Telecom<br />

(Chibardun Telephone Cooperative)<br />

MT Calix, ADTRAN 2002 Greenfield, Overbuild GPON Triple Play CLEC<br />

ND Calix 2010 Replace GPON,<br />

Active Ethernet<br />

CLEC<br />

Triple Play ILEC<br />

WI Calix 2007 Replace GPON Triple Play ILEC<br />

Mosinee Telephone WI Calix GPON ILEC<br />

Moundville Telephone Company AL ADTRAN 2008 Greenfield Voice, Data ILEC<br />

Mountain Rural Telephone<br />

Cooperative<br />

KY Calix 2010 Replace Triple Play ILEC<br />

Mountain View Telephone<br />

(Yelcot Telephone)<br />

AR Calix GPON Triple Play ILEC<br />

MTCO Communications<br />

(Metamora Telephone)<br />

IL Calix 2008 Overbuild GPON Voice, Data ILEC<br />

Mud Lake Telephone<br />

Cooperative Association<br />

ID Calix 2010 Active Ethernet ILEC


Provider States vendor –<br />

FttH<br />

electronics<br />

inDepenDent telcoS<br />

Start<br />

Date<br />

Greenfield/replace/<br />

Competitive<br />

Overbuild<br />

technology Services Provider<br />

type<br />

Mulberry Cooperative Telephone IN Calix 2009 Replace GPON Triple Play ILEC<br />

Mutual Telephone Company KS Calix 2008 Replace GPON ILEC<br />

Nebraska Central Telephone Company NE ADTRAN 2010 GPON ILEC<br />

Nehalem Telecommunications OR Calix BPON, GPON ILEC<br />

Nelson Telephone Cooperative WI 2010 Replace ILEC<br />

Nemont Telephone Cooperative<br />

(Project Telephone)<br />

MT Calix 2006 Replace GPON Voice, Data ILEC<br />

Network Communications TX ADTRAN 2010 Overbuild GPON Voice, Data CLEC<br />

Nevada Comstock Communications NV 2008 Greenfield, Overbuild Active Ethernet Voice, Data CLEC<br />

New Hope Telephone Cooperative AL Calix 2006 Replace Active Ethernet Triple Play ILEC<br />

New Knoxville Telephone Company OH Enablence,<br />

ADTRAN<br />

2004 Replace EPON, GPON Triple Play ILEC<br />

New Windsor Telephone IL Calix 2009 Replace, Overbuild Active Ethernet Triple Play ILEC<br />

Niagara Telephone Company WI Calix 2008 GPON ILEC<br />

NineStar Connect<br />

(formerly Hancock Telecom)<br />

Nortex Communications<br />

(Muenster Telephone)<br />

IN Enablence, Calix 2002 Greenfield EPON, GPON Triple Play, Meter<br />

Reading<br />

TX Calix 2007 Replace GPON,<br />

Active Ethernet<br />

March/april 2011 | www.broadbandproperties.com | BROADBAND PROPERTIES | 97<br />

ILEC<br />

Triple Play ILEC<br />

North Central Telephone Cooperative TN, KY Calix 2007 Replace Active Ethernet Triple Play ILEC<br />

North Dakota Telephone Company ND Allied Telesis 2005 Replace Active Ethernet Triple Play ILEC<br />

North Penn Telephone Company PA Calix 2008 GPON Triple Play ILEC<br />

North State Communications NC Calix 2005 Greenfield BPON, GPON Voice, Data ILEC<br />

Northeast Florida Telephone Company FL Calix 2005 Greenfield GPON Voice, Data ILEC<br />

Northeast Louisiana<br />

Telephone Company<br />

LA Calix 2010 Replace Active Ethernet Triple Play ILEC<br />

Northeast Missouri Rural Telephone MO Calix 2009 Replace Active Ethernet Triple Play ILEC<br />

Northern Arkansas Telephone<br />

Company (NATCO)<br />

AR Calix 2009 Replace Active Ethernet Triple Play ILEC<br />

Northern Telephone Cooperative MT Calix 2008 Replace GPON ILEC<br />

North-State Telephone Company OR Calix Replace GPON Voice, Data ILEC<br />

Northwest Communications<br />

Cooperative<br />

ND Calix 2008 Replace GPON Triple Play ILEC<br />

Northwestern Indiana Telephone IN Calix 2010 GPON Voice, Data ILEC<br />

Nsight WI Enablence 2003 Greenfield Active Ethernet Triple Play ILEC<br />

NTELOS VA Alcatel-Lucent,<br />

Tellabs, Ciena,<br />

ADTRAN, Zhone<br />

Technologies<br />

2006 Replace GPON Triple Play ILEC<br />

Nunn Telephone CO Calix 2010 GPON ILEC<br />

Omnilec IL Calix BPON CLEC<br />

One Source Communications TX ADTRAN 2010 Overbuild GPON Triple Play CLEC<br />

Oneida County Rural<br />

Telephone Company<br />

NY Calix 2010 GPON ILEC<br />

Ontario and Trumansburg Telephone NY Calix 2010 GPON,<br />

Active Ethernet<br />

Openband VA, MD, DC Calix 2005 Overbuild GPON Triple Play,<br />

Security<br />

Voice, Data ILEC<br />

Optimum Lightpath CT, NY Cisco, Tellabs Overbuild Active Ethernet Triple Play,<br />

Business Services<br />

CLEC<br />

CLEC


Provider States vendor –<br />

FttH<br />

electronics<br />

inDepenDent telcoS<br />

Start<br />

Date<br />

Greenfield/replace/<br />

Competitive<br />

Overbuild<br />

98 | BROADBAND PROPERTIES | www.broadbandproperties.com | March/april 2011<br />

technology Services Provider<br />

type<br />

Oregon Telephone OR Calix 2006 Replace GPON ILEC<br />

Orlando Telephone Company FL Enablence 2007 Overbuild EPON Triple Play CLEC<br />

Ottoville Mutual Telephone OH Calix 2010 GPON Triple Play ILEC<br />

Oxford Networks ME Calix, ADTRAN 2001 Replace, Overbuild GPON,<br />

Active Ethernet<br />

Triple Play ILEC<br />

Palmetto Rural Telephone Cooperative SC Calix 2010 Replace GPON Triple Play ILEC<br />

Panhandle Telephone Cooperative OK 2010 Replace Active Ethernet Triple Play ILEC<br />

Panora Cooperative<br />

Telephone Association<br />

(Guthrie Telecommunications)<br />

IA Calix 2002 Replace, Overbuild GPON Triple Play ILEC<br />

Park Region Mutual<br />

Telephone Company<br />

MN Calix Overbuild GPON ILEC<br />

Parker <strong>Fiber</strong>Net GA Calix 2006 Replace GPON Voice, Data CLEC<br />

Paul Bunyan Rural<br />

MN Calix, Allied 2004 Replace, Overbuild GPON, EPON, Triple Play ILEC<br />

Telephone Cooperative<br />

Telesis<br />

Active Ethernet<br />

PAXIO CA PacketFront 2004 Greenfield, Overbuild Active Ethernet Voice, Data CLEC<br />

PBT Telecom SC Motorola 2005 Greenfield GPON, BPON Triple Play ILEC<br />

Pembroke Telephone Company GA Calix, ADTRAN 2004 Greenfield, Replace GPON Triple Play ILEC<br />

Pembroke Telephone Cooperative VA Calix 2008 GPON ILEC<br />

Penasco Valley Telecommunications NM Calix 2008 GPON Triple Play ILEC<br />

Peoples Rural Telephone Cooperative KY Calix 2008 Replace GPON,<br />

Active Ethernet<br />

Triple Play ILEC<br />

Peoples Telecommunications KS 2010 Voice, Data ILEC<br />

Peoples Telephone Cooperative TX ADTRAN 2009 Replace GPON Voice, Data ILEC<br />

Perry-Spencer Rural Telephone<br />

IN Enablence, Calix 2009 Replace GPON, Triple Play ILEC<br />

Cooperative (PSC)<br />

Active Ethernet<br />

Phillips County Telephone Company<br />

(PC Telcom)<br />

CO ILEC<br />

Piedmont Rural Telephone Company SC Calix, ADTRAN 2010 GPON ILEC<br />

Pine Drive Telephone Company CO Calix 2008 GPON Triple Play ILEC<br />

Pine Telephone Company OK 2010 Voice, Data ILEC<br />

Pine Telephone System OR Calix 2010 GPON Voice, Data ILEC<br />

Pine Tree Networks ME Calix BPON ILEC<br />

Pineland Telephone Cooperative GA Calix 2006 Greenfield, Replace,<br />

Overbuild,<br />

Active Ethernet Triple Play ILEC<br />

Pinnacle Communications AR Calix 2005 Replace GPON Triple Play ILEC<br />

Pioneer Communications KS Calix 2009 GPON Triple Play ILEC<br />

Pioneer Telephone Cooperative OK, KS Calix 2008 Replace GPON Triple Play ILEC<br />

Pioneer Telephone Cooperative OR Calix GPON ILEC<br />

Plains Cooperative<br />

Telephone Association<br />

CO 2010 Voice, Data ILEC<br />

Plainview Telephone Company<br />

(Nyecom)<br />

NE Calix 2009 Replace GPON Voice, Data ILEC<br />

Plant Telephone GA Calix BPON ILEC<br />

Planters Telephone Company GA Calix 2006 Greenfield GPON,<br />

Active Ethernet<br />

Triple Play ILEC<br />

Poka Lambro Telephone Company TX Calix 2005 Overbuild GPON Voice, Data ILEC<br />

Polar Communications ND, MN Calix 2007 Replace GPON,<br />

Active Ethernet<br />

Triple Play ILEC


Provider States vendor –<br />

FttH<br />

electronics<br />

inDepenDent telcoS<br />

Start<br />

Date<br />

Greenfield/replace/<br />

Competitive<br />

Overbuild<br />

technology Services Provider<br />

type<br />

Pottawatomie Telephone Company OK Calix 2009 GPON Triple Play ILEC<br />

Prairie Grove Telephone Company AR Calix 2007 Greenfield Active Ethernet Voice, Data ILEC<br />

Premier Communications IA Calix GPON ILEC<br />

Prime Time Communications CO, UT,<br />

NV, MS<br />

PrimeLink<br />

(Champlain Telephone Company)<br />

Calix, Alcatel-<br />

Lucent,<br />

Enablence<br />

2004 Greenfield GPON, EPON Triple Play CLEC<br />

NY Calix, CTDI 2002 Overbuild EPON, GPON,<br />

Active Ethernet<br />

Triple Play ILEC<br />

Progressive Rural Telephone Co-op GA ADTRAN 2010 GPON Triple Play ILEC<br />

Project Mutual Telephone Co-op ID Calix, ADTRAN 2005 Overbuild, Greenfield GPON,<br />

Active Ethernet<br />

Triple Play ILEC<br />

Public Service Telephone Company GA Calix 2005 Greenfield GPON Triple Play ILEC<br />

Pulaski/White Rural<br />

Telephone Cooperative<br />

IN 2010 Overbuild ILEC<br />

Radcliffe Telephone Company IA Calix 2009 GPON Triple Play ILEC<br />

Rainbow Telephone<br />

Cooperative Association<br />

KS Calix 2008 GPON Triple Play ILEC<br />

Rainier Connect WA Calix 2010 GPON ILEC<br />

Randolph Telephone NC Calix 2005 Greenfield GPON Triple Play ILEC<br />

Range Telephone Cooperative<br />

(Advanced Communications<br />

Technology, Dubois Telephone<br />

Exchange)<br />

MT, WY Calix 2008 Overbuild GPON,<br />

Active Ethernet<br />

Triple Play ILEC<br />

Readlyn Telephone Company IA Calix 2008 Replace GPON Triple Play ILEC<br />

Red River Telephone ND, MN Calix 2005 Replace GPON Voice, Data ILEC<br />

Reliance Connects<br />

(Rio Virgin Telephone/Cascade<br />

Utilities/Trans-Cascade Telephone)<br />

NV, OR Calix, ADTRAN 2008 Replace GPON Triple Play ILEC<br />

Reservation Telephone Cooperative ND Calix 2007 Replace GPON Triple Play, Meter<br />

Reading, Security<br />

Reynolds Telephone IL Calix 2009 Replace GPON Triple Play ILEC<br />

Rice Belt Telephone AR ADTRAN 2009 GPON Triple Play ILEC<br />

Richland-Grant Telephone Cooperative WI Calix 2006 Greenfield GPON,<br />

Active Ethernet<br />

March/april 2011 | www.broadbandproperties.com | BROADBAND PROPERTIES | 99<br />

ILEC<br />

Triple Play ILEC<br />

Ridgeville Telephone Company OH Enablence 2006 Overbuild EPON Triple Play ILEC<br />

Ringgold Telephone GA Enablence, Calix 2004 Greenfield EPON, GPON,<br />

Active Ethernet<br />

Triple Play ILEC<br />

Ritter Communications AR Enablence 2006 Greenfield, Overbuild Active Ethernet Voice, Data ILEC<br />

River Valley Telephone Cooperative IA Calix 2008 GPON Triple Play ILEC<br />

Roberts County Telephone<br />

Cooperative Association<br />

(RC Communications)<br />

Rochester Telephone Company IN Enablence, Zhone<br />

Technologies<br />

Rockwell Cooperative<br />

Telephone Association<br />

SD Calix 2004 Triple Play ILEC<br />

2002 Replace EPON, GPON Triple Play ILEC<br />

IA Enablence 2007 Replace GPON Triple Play ILEC<br />

Ronan Telephone MT Calix BPON,<br />

Active Ethernet<br />

Royal Telephone Company IA Calix 2005 Replace GPON Triple Play ILEC<br />

RST Communications SC, NC Motorola 2010 Overbuild GPON Triple Play,<br />

Meter Reading,<br />

Home Automation,<br />

Security<br />

ILEC<br />

CLEC


Provider States vendor –<br />

FttH<br />

electronics<br />

inDepenDent telcoS<br />

Start<br />

Date<br />

Greenfield/replace/<br />

Competitive<br />

Overbuild<br />

100 | BROADBAND PROPERTIES | www.broadbandproperties.com | March/april 2011<br />

technology Services Provider<br />

type<br />

RT Communications WY Enablence, Calix 2006 Replace GPON Voice, Data ILEC<br />

RTC Communications IN Calix 2005 Replace GPON Triple Play ILEC<br />

Runestone Telephone Association MN Calix 2007 Replace GPON Triple Play ILEC<br />

Rural Telephone (Nex-Tech) KS Calix 2001 Replace, Overbuild GPON,<br />

Active Ethernet<br />

Triple Play ILEC<br />

Rye Telephone Company CO Calix 2002 Replace GPON Triple Play ILEC<br />

S&T Telephone Cooperative KS Calix 2008 Replace GPON Triple Play ILEC<br />

Saddleback Communications AZ Calix 2008 GPON ILEC<br />

San Carlos Apache Telecom AZ Calix GPON ILEC<br />

San Isabel Telecom CO Calix 2002 Greenfield GPON Triple Play CLEC<br />

Sandwich Isles Telecom HI Calix GPON ILEC<br />

Santa Rosa Telephone Cooperative TX Calix 2005 Overbuild GPON Triple Play ILEC<br />

Santel Communications SD Enablence 2005 Overbuild EPON Triple Play ILEC<br />

SC Telcom (South Central Telephone,<br />

South Central Wireless)<br />

KS Calix 2002 Replace, Overbuild GPON,<br />

Active Ethernet<br />

Voice, Data ILEC<br />

Scio Mutual Telephone Association OR Calix 2004 Replace GPON Triple Play ILEC<br />

Scott County Telephone Coop VA, TN Enablence, Calix 2004 Replace EPON, GPON,<br />

Active Ethernet<br />

Triple Play ILEC<br />

Sebastian (Audeamus) CA Calix 2009 Greenfield Triple Play ILEC<br />

Shawnee Telephone Company IL Zhone<br />

Technologies<br />

Shenandoah Telecommunications VA, WV Enablence,<br />

Motorola<br />

Sherwood Mutual<br />

Telephone Association<br />

2010 Replace GPON Voice, Data ILEC<br />

2006 Greenfield EPON Triple Play,<br />

Security<br />

OH Calix Replace GPON Triple Play ILEC<br />

Sierra Telephone CA Calix 2010 GPON ILEC<br />

Silver Star Communications WY Calix 2005 Greenfield GPON Triple Play ILEC<br />

Siren Telephone WI Allied Telesis 2008 Replace Active Ethernet Triple Play ILEC<br />

Siskiyou Telephone CA Replace ILEC<br />

Skyline Membership Corporation NC Allied Telesis,<br />

Calix<br />

ILEC<br />

2004 Replace PON Triple Play ILEC<br />

Sledge Telephone Company MS Calix 2009 Replace Active Ethernet Voice, Data ILEC<br />

Slic Network Solutions<br />

(Nicholville Telephone Company)<br />

NY Calix 2009 Overbuild GPON Triple Play ILEC<br />

Smart City FL Calix Greenfield BPON, GPON,<br />

Active Ethernet<br />

Triple Play ILEC<br />

Smartcom Telephone TX ADTRAN 2010 Overbuild GPON Voice, Data CLEC<br />

Smithville IN Calix 2008 Replace GPON,<br />

Active Ethernet<br />

Triple Play ILEC<br />

Socket Telecom MO 2010 Triple Play CLEC<br />

Solarus WI Calix GPON Triple Play ILEC<br />

Sonic.net CA 2010 Overbuild <strong>Fiber</strong> to Building Voice, Data CLEC<br />

South Central Communications UT Calix 2002 Greenfield GPON Triple Play ILEC<br />

South Central Rural<br />

Telephone Cooperative<br />

KY ADTRAN 2009 Replace GPON Triple Play ILEC<br />

South Plains Telephone Cooperative TX Calix Greenfield GPON ILEC<br />

South Slope Cooperative<br />

Communications<br />

IA Calix 2004 Replace GPON,<br />

Active Ethernet<br />

Triple Play ILEC


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Provider States vendor –<br />

FttH<br />

electronics<br />

Southeast Nebraska<br />

Telephone Company<br />

inDepenDent telcoS<br />

Start<br />

Date<br />

Greenfield/replace/<br />

Competitive<br />

Overbuild<br />

102 | BROADBAND PROPERTIES | www.broadbandproperties.com | March/april 2011<br />

technology Services Provider<br />

type<br />

NE 2009 Replace Voice, Data ILEC<br />

Southeastern Indiana Telephone IN 2010 GPON Voice, Data ILEC<br />

Southern Kansas Telephone KS Calix 2008 Replace GPON,<br />

Active Ethernet<br />

Voice, Data ILEC<br />

Southern Light <strong>Fiber</strong> AL ADTRAN 2010 GPON CLEC<br />

Southern Montana<br />

Telephone Company<br />

Southwest Arkansas<br />

Telephone Cooperative<br />

Southwest Michigan Communications<br />

(Bloomingdale Telephone)<br />

MT Calix 2009 Replace GPON Voice, Data ILEC<br />

AR 2010 Triple Play ILEC<br />

MI Calix Overbuild GPON Triple Play ILEC<br />

Southwest Texas Telephone TX ADTRAN 2010 GPON ILEC<br />

Spring Grove Communications MN Calix 2007 Replace GPON Triple Play ILEC<br />

Spring Valley Telephone WI 2009 Replace Triple Play ILEC<br />

Spruce Knob Seneca Rocks Telephone WV Calix 2008 Replace GPON Triple Play ILEC<br />

SRT Communications ND Zhone<br />

Technologies,<br />

Calix<br />

2008 Greenfield, Replace GPON,<br />

Active Ethernet<br />

St. John Telephone Company WA 2007 Replace ILEC<br />

St. Paul Cooperative<br />

Telephone Association<br />

OR Calix 2008 GPON ILEC<br />

Stanton Telecom NE Calix 2010 Replace GPON Triple Play ILEC<br />

Star Telephone Membership<br />

Corporation<br />

NC 2009 ILEC<br />

State Telephone Company NY Calix 2009 Replace GPON Triple Play ILEC<br />

Stayton Cooperative Telephone OR Calix 2009 Replace GPON,<br />

Active Ethernet<br />

Stoneham Cooperative<br />

Telephone Corporation<br />

Strata Networks (formerly UBTA-UBET<br />

Communications)<br />

Stratford Mutual Telephone Company IA Zhone<br />

Technologies<br />

SureWest Communications CA, KS, MO Calix, Allied<br />

Telesis, ADTRAN<br />

Surry Telephone Membership<br />

Corporation<br />

ILEC<br />

Triple Play ILEC<br />

CO 2010 Replace Voice, Data ILEC<br />

UT Calix 2007 Greenfield GPON,<br />

Active Ethernet<br />

Triple Play ILEC<br />

2005 Replace GPON Triple Play ILEC<br />

2001 Greenfield, Replace,<br />

Overbuild<br />

PON, GPON,<br />

Active Ethernet<br />

NC Allied Telesis 2008 Replace EPON, Active<br />

Ethernet<br />

Triple Play ILEC<br />

Triple Play ILEC<br />

Swisher Telephone Company IA Calix 2009 Replace GPON Triple Play ILEC<br />

Sycamore Telephone Company OH 2010 Voice, Data ILEC<br />

Syringa Networks UT, ID 2010 Overbuild Active Ethernet CLEC<br />

T2 Communications MI Calix 2005 Greenfield, Overbuild GPON Triple Play CLEC<br />

Table Top Telephone AZ Calix 2010 GPON,<br />

Active Ethernet<br />

Tamarack Video & Telecom ID Calix 2008 Greenfield GPON Triple Play CLEC<br />

Tatum Telephone TX ADTRAN 2010 GPON ILEC<br />

Taylor Telephone Cooperative TX Zhone<br />

Technologies<br />

ILEC<br />

2007 Replace GPON Voice, Data ILEC<br />

TDS Telecom WI, MN Calix, Ericsson 2005 Greenfield GPON Triple Play ILEC<br />

Tech Valley Communications NY Calix 2006 Overbuild GPON Voice, Data CLEC<br />

Tel West Network Services Corporation TX ADTRAN 2010 Overbuild GPON Voice, Data CLEC


Provider States vendor –<br />

FttH<br />

electronics<br />

inDepenDent telcoS<br />

Start<br />

Date<br />

Greenfield/replace/<br />

Competitive<br />

Overbuild<br />

technology Services Provider<br />

type<br />

TelAtlantic WV Tellabs 2006 Greenfield BPON Triple Play ILEC<br />

Tele-Media Solutions IN ADTRAN 2010 Greenfield GPON ILEC<br />

Telepak Networks MS Calix 2005 Overbuild GPON Triple Play ILEC<br />

Telephone Electronics Corporation<br />

(TEC, Bay Springs)<br />

Telephone Service Company<br />

(Hanson Communications)<br />

MS, AL, TN ADTRAN, 2008 Replace GPON Triple Play ILEC<br />

OH Triple Play ILEC<br />

Teljet Longhaul VT Overbuild Active Ethernet Voice, Data CLEC<br />

Teton Telecom ID Calix 2004 Greenfield GPON Triple Play ILEC<br />

Thacker-Grigsby Telephone KY Calix GPON ILEC<br />

Three River Telco NE 2008 Replace ILEC<br />

Titonka Burt Communications IA ADTRAN Active Ethernet ILEC<br />

Tohono O’odham Utility Authority AZ 2010 Replace ILEC<br />

Toledo Telephone WA Calix 2006 Overbuild GPON Triple Play ILEC<br />

Topsham Telephone VT Calix 2006 GPON Triple Play ILEC<br />

Transtelco TX Calix 2010 Overbuild GPON,<br />

Active Ethernet<br />

Voice, Data CLEC<br />

Tri County Telephone (TCT West) WY Calix 2004 Replace GPON Triple Play ILEC<br />

Triangle Communications (Triangle<br />

Telephone Cooperative, Central<br />

Montana Communications)<br />

MT 2007 Replace GPON,<br />

Active Ethernet<br />

Triple Play ILEC<br />

TriCounty Telecom NC 2009 Greenfield, Replace GPON Triple Play ILEC<br />

Tri-County Telephone Association KS Calix 2009 Replace GPON,<br />

Active Ethernet<br />

TrioTel Communications<br />

(McCook Cooperative)<br />

Triple Play ILEC<br />

SD Calix 2009 Replace GPON Triple Play ILEC<br />

Troy Cable AL Hitachi 2008 Overbuild RFoG Triple Play CLEC<br />

Trumansburg Telephone NY Tellabs, Calix 2009 Replace GPON,<br />

Active Ethernet<br />

Triple Play ILEC<br />

Truvista Communications SC Calix GPON Triple Play ILEC<br />

TSC OH Calix 2003 Overbuild GPON Triple Play ILEC<br />

Tularosa Basin Telephone Company NM Calix 2006 Replace Active Ethernet Triple Play ILEC<br />

Twin Lakes Telephone Cooperative TN ADTRAN 2008 Replace, Overbuild GPON Triple Play,<br />

Security<br />

Twin Valley Telephone KS Allied Telesis 2006 Replace, Overbuild Active Ethernet,<br />

EPON<br />

March/april 2011 | www.broadbandproperties.com | BROADBAND PROPERTIES | 103<br />

ILEC<br />

Triple Play ILEC<br />

Union River Telephone Company ME Calix 2008 Replace GPON Voice, Data ILEC<br />

Union Springs Telephone AL Calix 2001 Replace GPON,<br />

Active Ethernet<br />

Triple Play ILEC<br />

Union Telephone NH Enablence 2007 Replace Active Ethernet Triple Play ILEC<br />

United Telephone Association KS Calix 2010 GPON Triple Play ILEC<br />

United Telephone Company TN Calix 2004 Greenfield GPON Triple Play ILEC<br />

United Telephone<br />

Mutual Aid Corporation<br />

ND Allied Telesis,<br />

Calix<br />

2008 Replace Active Ethernet Triple Play ILEC<br />

United Telesystems GA Alcatel-Lucent 2003 Overbuild BPON Triple Play CLEC<br />

Upper Sioux Community MN Calix 2009 GPON ILEC<br />

Upsala Cooperative Telephone MN Calix 2010 GPON Voice, Data ILEC<br />

US SONET IL Enablence 2003 Overbuild PON Triple Play CLEC<br />

Valley Telecom Group AZ Enablence 2005 Replace EPON, GPON,<br />

Active Ethernet<br />

Triple Play ILEC


Provider States vendor –<br />

FttH<br />

electronics<br />

Valley Telecommunications<br />

Cooperative<br />

Valley Telephone Cooperative<br />

(VTCI, VTX Telecom)<br />

inDepenDent telcoS<br />

Start<br />

Date<br />

Greenfield/replace/<br />

Competitive<br />

Overbuild<br />

104 | BROADBAND PROPERTIES | www.broadbandproperties.com | March/april 2011<br />

technology Services Provider<br />

type<br />

SD Calix 2008 Replace GPON Triple Play ILEC<br />

TX Enablence 2005 Greenfield, Replace,<br />

Overbuild<br />

GPON,<br />

Active Ethernet<br />

Triple Play ILEC<br />

Velocity Telephone MN 2010 Overbuild Active Ethernet Triple Play CLEC<br />

Venture Communications Cooperative SD Calix 2006 Replace GPON Triple Play ILEC<br />

Venus Telephone Company PA 2010 Replace Triple Play ILEC<br />

Veracity Networks UT Telco Systems 2005 Greenfield Active Ethernet Triple Play, Gaming CLEC<br />

Vermont Telephone VT Calix 2007 Replace BPON, GPON,<br />

Active Ethernet<br />

Voice, Data ILEC<br />

Vernon Telephone Cooperative WI Triple Play ILEC<br />

Volcano Telephone CA Calix 2010 GPON ILEC<br />

Wabash Mutual Telephone OH Enablence, Calix 2005 Replace, Overbuild EPON, GPON,<br />

Active Ethernet<br />

Triple Play ILEC<br />

Wabash Telephone Cooperative IL Calix 2010 Replace GPON Triple Play ILEC<br />

Wahkiakum West Telephone WA Replace ILEC<br />

Waitsfield and Champlain Valley<br />

Telecom (Waitsfield-Fayston<br />

Telephone Company)<br />

VT Enablence 2007 Greenfield Active Ethernet Voice, Data ILEC<br />

Walnut Communications IA 2009 Overbuild ILEC<br />

Wamego Telecommunications KS Calix 2002 Replace GPON Triple Play ILEC<br />

Warwick Valley Telephone<br />

NY Enablence, Calix 2006 Overbuild GPON, Triple Play ILEC<br />

Communications<br />

Active Ethernet<br />

Webster-Calhoun Cooperative<br />

Telephone Association<br />

IA Calix 2005 Replace GPON Triple Play ILEC<br />

West Carolina Tel SC Calix 2008 Replace GPON,<br />

Active Ethernet<br />

Triple Play ILEC<br />

West Central Telephone MN Calix 2005 Replace PON Triple Play ILEC<br />

West Kentucky Rural<br />

Telephone Cooperative<br />

TN, KY 2010 Replace Triple Play ILEC<br />

West Plains Telecommunications<br />

(Five Area Telephone Cooperative)<br />

TX CTDI 2006 Replace EPON Triple Play ILEC<br />

West River Cooperative<br />

Telephone Company<br />

SD Calix 2007 Replace GPON ILEC<br />

West Texas Rural Telephone<br />

Cooperative (WT Services)<br />

TX Calix 2007 Overbuild GPON Triple Play ILEC<br />

West Wisconsin Telcom Cooperative WI Calix 2007 Replace GPON ILEC<br />

Westel <strong>Fiber</strong> ID Greenfield Triple Play CLEC<br />

WesTel Systems IA Calix 2009 GPON ILEC<br />

WesTex Telephone Cooperative &<br />

Telecommunications<br />

TX ADTRAN 2010 Active Ethernet ILEC<br />

Westphalia Telephone (Clinton County MI Calix 2006 Overbuild GPON,<br />

ILEC<br />

Telephone Company)<br />

Active Ethernet<br />

Wide Open West (Sigecom) IN Motorola, Calix 2001 Overbuild GPON Triple Play CLEC<br />

Wiggins Telephone CO Calix 2008 Replace GPON Voice, Data ILEC<br />

Wikstrom Telephone Company MN Calix 2010 Replace GPON,<br />

Active Ethernet<br />

Triple Play ILEC<br />

Wilkes Telecommunications NC Allied Telesis 2009 Replace Active Ethernet Triple Play ILEC<br />

Wilkes Telephone & Electric GA Calix 2006 Replace GPON Triple Play ILEC<br />

Willard Telephone CO 2010 Replace Voice, Data ILEC


Provider States vendor –<br />

FttH<br />

electronics<br />

inDepenDent telcoS<br />

Start<br />

Date<br />

Greenfield/replace/<br />

Competitive<br />

Overbuild<br />

technology Services Provider<br />

type<br />

Wilson Communications KS ADTRAN 2010 Replace GPON Triple Play ILEC<br />

Windstream Communications AL, AR, FL,<br />

GA, KY, NE,<br />

NC, SC, TX<br />

Calix 2006 Greenfield GPON Voice, Data ILEC<br />

Windwave Communications OR Calix 2004 Overbuild PON Triple Play CLEC<br />

Winn Telephone MI Calix Overbuild BPON ILEC<br />

Winnebago Cooperative<br />

Telecom Association<br />

IA, MN Calix GPON Triple Play ILEC<br />

Wittenberg Telephone WI Calix BPON ILEC<br />

WNM Communications NM ADTRAN 2010 Active Ethernet Voice, Data,<br />

Business Services<br />

Woodhull Telephone Company IL Calix 2010 Replace Triple Play ILEC<br />

Woodstock Telephone Company MN Tellabs 2008 Replace GPON Triple Play ILEC<br />

XFONE (NTS, Pride Network) TX, LA Calix, ADTRAN 2003 Greenfield, Overbuild GPON Triple Play CLEC<br />

XIT Rural Telephone Cooperative TX Calix 2008 Replace GPON Triple Play ILEC<br />

Yadkin Valley Telecom NC Zhone<br />

Technologies<br />

Yucca Telecom (Roosevelt County<br />

Rural Telephone Cooperative)<br />

March/april 2011 | www.broadbandproperties.com | BROADBAND PROPERTIES | 105<br />

ILEC<br />

2007 GPON Triple Play ILEC<br />

NM Calix 2005 Replace GPON Voice, Data ILEC<br />

Zial Networks ID, UT 2003 Greenfield, Overbuild Active Ethernet Triple Play CLEC<br />

Zito Media PA 2008 Overbuild Voice, Data CLEC<br />

Zona Communications AZ Calix T:8.125”<br />

2005 Greenfield GPON Voice, Data ILEC<br />

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inDepenDent telcoS<br />

Modeling the Cost<br />

Of rural <strong>Fiber</strong> Deployment<br />

An important new study of independent telco FTTH deployments provides a<br />

cost model that both providers and policymakers can use.<br />

By Masha Zager ■ <strong>Broadband</strong> <strong>Properties</strong><br />

In 2009 and early 2010, the Omnibus<br />

<strong>Broadband</strong> Initiative team that<br />

developed the National <strong>Broadband</strong><br />

Plan for the Federal Communications<br />

Commission released estimates of the<br />

cost of deploying fiber to all American<br />

homes. These estimates, which seemed<br />

surprisingly high to people who had<br />

experience with FTTH buildouts, convinced<br />

policymakers – and the news-<br />

Mining its extensive database of rural<br />

fiber-to-the-home deployments, the<br />

engineering firm Vantage Point Solutions<br />

developed a cost model that is generally<br />

applicable to rural areas of the United States.<br />

paper-reading public – that fiber to the<br />

home should not be an important part<br />

of the plan.<br />

Of course, there was dissent. For<br />

example, Calix, the FTTH electronics<br />

vendor that has worked with more<br />

than half the rural telcos deploying fiber<br />

in the U.S., presented evidence to the<br />

FCC that its estimates were too high.<br />

<strong>Broadband</strong> <strong>Properties</strong> discussed the unreasonableness<br />

of the FCC’s numbers in<br />

these pages and in Take It to the Bank,<br />

the editor’s blog on www.bbpmag.com.<br />

However, no solid basis existed for estimating<br />

actual costs – or for deciding,<br />

from a policy standpoint, in which areas<br />

fiber deployment made sense.<br />

vAntAGe POInt rISeS tO<br />

tHe CHAllenGe<br />

Vantage Point Solutions, an engineering<br />

firm based in Mitchell, S.D., has extensive<br />

experience designing FTTH networks.<br />

When Larry Thompson, Vantage<br />

Point’s CEO, studied the FCC numbers,<br />

he concluded that they did not reflect his<br />

experience of rural construction costs.<br />

Vantage Point was then working<br />

with the Nebraska Rural Independent<br />

Companies, a group of 19 telcos, to prepare<br />

comments on FCC notices of proposed<br />

rulemaking. Thompson recalls,<br />

“When we sat down with the Nebraska<br />

group, rather than complaining, we<br />

asked what we could do that was better.”<br />

The group decided to sponsor an<br />

analysis of FTTH deployments by 63<br />

independent telcos for which Vantage<br />

Point already had detailed data and then<br />

About the Author<br />

Masha Zager is the editor of <strong>Broadband</strong> <strong>Properties</strong>. You can reach her at masha@<br />

broadbandproperties.com.<br />

106 | BROADBAND PROPERTIES | www.broadbandproperties.com | March/april 2011<br />

develop a model that could help predict<br />

costs of future rural fiber deployments.<br />

The available data was for network<br />

builds in 227 rural areas and 209 town<br />

areas. (The towns are typically small<br />

towns outside metropolitan areas.)<br />

In addition to Vantage Point, several<br />

other firms participated in the study:<br />

Consortia Consulting of Lincoln, Neb.;<br />

Rolka, Loube, Saltzer Associates of Harrisburg,<br />

Pa.; and Stone Environmental<br />

of Montpelier, Vt.<br />

DePlOyMent COStS –<br />

WHAt WAS InCluDeD<br />

For the analysis, Vantage Point considered<br />

the cost in each area of engineering<br />

the network, purchasing and installing<br />

electronics for central offices and<br />

customer premises, purchasing spare<br />

parts and miscellaneous materials, and<br />

purchasing and installing mainline and<br />

drop fiber optic cables and fiber management<br />

equipment. Mainline fiber<br />

cables were generally sized to accommodate<br />

anticipated growth.<br />

Vantage Point did not consider the<br />

costs of upgrading middle-mile networks,<br />

even though such upgrades are<br />

needed in many areas to enable FTTH<br />

networks to deliver high-speed Internet<br />

connections at a reasonable cost.<br />

Thompson explains that because the<br />

policy debate centered on the local loop,<br />

his primary concern was to estimate the<br />

costs involved in upgrading local loops.


Nearly all the deployers in the Vantage<br />

Point study had used direct-buried<br />

fiber, though they had placed some fiber<br />

in existing conduit in town areas and<br />

strung a small amount on utility poles.<br />

In addition, nearly all deployers dedicated<br />

a fiber from the central office to<br />

each customer, either because they had<br />

placed their PON splitters in central offices<br />

or, in a few cases, had used pointto-point<br />

technology.<br />

AnAlySIS OF vAntAGe<br />

POInt reCOrDS<br />

In addition to cost records, Vantage<br />

Point had access to other critical data –<br />

physical measurements of the lengths of<br />

fiber deployed as well as the number of<br />

locations (homes, businesses or multiple<br />

dwelling units) that were connected to<br />

fiber. In most cases, there was one subscriber<br />

per location.<br />

To begin the analysis, Vantage Point<br />

compared overall, inflation-adjusted<br />

costs for each of the 436 areas with the<br />

number of locations per square mile and<br />

per route mile. As the graph shows, the<br />

cost per location was strongly related to<br />

density. Linear density (locations per<br />

route mile) proved to be a much better<br />

predictor of costs than area density<br />

(locations per square mile) – a finding<br />

that accords with common sense, even<br />

though area density is the measurement<br />

more commonly used in telecommunications<br />

planning.<br />

A regression analysis yielded the following<br />

cost equation:<br />

Cost per location = $4,430 +<br />

$12,911 * (route miles/locations)<br />

In other words, for each subscriber<br />

location there is a large fixed cost for<br />

equipment, installation and so forth,<br />

plus a share of the cost of the outside<br />

plant, which takes the fiber from the<br />

central office to the subscriber location.<br />

In this study, the outside plant for all<br />

436 deployments accounted for about<br />

58 percent of the total construction<br />

cost, but in any particular area, the cost<br />

per location of outside plant depended<br />

on how many locations shared the cost.<br />

In a town, the second component<br />

may be very small, and therefore the<br />

cost per location is relatively low – even<br />

though outside-plant costs per mile are<br />

inDepenDent telcoS<br />

actually much higher in towns because<br />

town projects require more conduit,<br />

more frequent road crossings and more<br />

coordination with other utilities. Out in<br />

the country, the cost per mile is lower,<br />

but with few locations on each route,<br />

the cost per location may be very high.<br />

Because the population density varied<br />

so much, overall costs per location were<br />

double in the rural areas – $9,286 compared<br />

with $4,438 in towns.<br />

The explanatory power of this equation<br />

was very high: R-squared is 0.87,<br />

meaning that linear density alone explains<br />

87 percent of the variation in cost<br />

per location.<br />

uSInG PuBlIC DAtA<br />

Performing this initial analysis demonstrated<br />

that the costs of FTTH deployment<br />

were highly predictable. However,<br />

the model does not actually help telcos<br />

or government agencies predict fiber deployment<br />

costs unless they first count<br />

the locations to be connected and then<br />

Cost per Location by Route Density<br />

design and measure fiber routes to all<br />

those locations.<br />

For a model to be generally applicable,<br />

it would have to make use of readily<br />

available data rather than requiring<br />

an engineering study of each potential<br />

deployment area. Thus, Vantage Point’s<br />

next step was to identify public variables<br />

that correlated closely with the variables<br />

in its model.<br />

For the number of locations, the<br />

company tried substituting the number<br />

of households as measured by the U.S.<br />

Census Bureau. This approach would<br />

not have worked in metropolitan areas,<br />

where households typically can choose<br />

among two or three broadband providers<br />

and many do not take fiber services.<br />

However, in the rural regions covered<br />

in this study, the number of subscriber<br />

locations is closely related to the number<br />

of households. Thompson explains,<br />

“Most of these deployments were by incumbents<br />

whose cables were 40 years old<br />

and needed to be replaced, so they put a<br />

For a model to be generally applicable, it has to<br />

make use of readily available data rather than<br />

requiring an engineering study of each<br />

potential deployment area.<br />

March/april 2011 | www.broadbandproperties.com | BROADBAND PROPERTIES | 107


drop in every location. We were assuming<br />

there would be 100 percent service.”<br />

That assumption proved to be valid.<br />

Changing the “locations” variable to<br />

“households” caused very little change<br />

in the cost model.<br />

To replace the number of mainline<br />

fiber route miles with a public variable,<br />

Vantage Point first substituted road<br />

miles, based on GIS data and a national<br />

database of streets. This substitution assumed<br />

that houses or businesses were<br />

located along every road in the area and<br />

that fiber could be deployed along all<br />

roads. As it turned out, these assumptions<br />

were not entirely accurate. Vantage<br />

Point then adjusted the road mileage to<br />

eliminate unpopulated areas and road<br />

types that were unlikely to support utility<br />

rights-of-way.<br />

With census households and adjusted<br />

road miles replacing locations and<br />

mainline fiber route miles, the equation<br />

changed slightly:<br />

Cost per household = $5,042 +<br />

$13,134 * (adjusted road miles/<br />

households)<br />

reFInInG tHe MODel<br />

Using the new equation, any rural telco<br />

could now estimate fiber deployment<br />

costs from readily available data without<br />

doing an engineering study – a great benefit.<br />

However, the explanatory power of<br />

inDepenDent telcoS<br />

Thompson hopes to augment the model with<br />

data from additional deployments. Rural FTTH<br />

deployers that would like to contribute data<br />

are invited to participate.<br />

resOurces And cAll<br />

fOr pArticipAnts<br />

the new equation was not quite as good as<br />

that of the original equation; it accounted<br />

for only 82.5 percent of the variation in<br />

FTTH construction costs, compared<br />

with 87 percent for the first equation.<br />

So Vantage Point looked for additional<br />

variables beyond road miles per<br />

household that might help it estimate<br />

deployment costs more precisely. After<br />

testing a number of possibilities, the<br />

company identified the total number of<br />

households, the frost index, the percentage<br />

of wetlands, the soil texture and the<br />

number of intersections as statistically<br />

significant variables. All had small effects<br />

on total cost, compared with the effect of<br />

route density. Still, adding them into the<br />

equation raised the model’s explanatory<br />

power back to nearly 87 percent.<br />

The final cost modeling equation<br />

looks like this:<br />

Cost per household = $3,072 +<br />

$13,365 * (adjusted road miles/<br />

households) - 0.8867 * households<br />

+ $25.04 * frost index +<br />

$17,700 * wetlands percentage +<br />

$1,376 * soils texture + $165.40<br />

* road intersection frequency<br />

The absolute number of households<br />

has a small negative effect on cost per<br />

household because there is an economyof-scale<br />

effect – managing a larger project<br />

is slightly more cost-efficient than<br />

managing a smaller project.<br />

Detailed reports from Vantage Point about this cost-modeling project are<br />

available on the Rural tab of the <strong>Broadband</strong> <strong>Properties</strong> website at www.<br />

bbpmag.com/mt12.php.<br />

To participate in the project by contributing data about additional FTTH<br />

deployments, contact Larry Thompson at larry.thompson@vantagepnt.com.<br />

108 | BROADBAND PROPERTIES | www.broadbandproperties.com | March/april 2011<br />

The remaining four variables reflect<br />

physical conditions that make construction<br />

more difficult: Frost days shorten<br />

the construction season. <strong>Fiber</strong> construction<br />

in wetlands requires additional<br />

approvals and specialized techniques.<br />

Rocky soils and certain kinds of dense<br />

soils are harder to dig. Finally, road intersections<br />

slow fiber construction and<br />

impose other costs.<br />

uSInG tHe MODel<br />

In January, Thompson, along with another<br />

consultant who participated in the<br />

study and two representatives of the Nebraska<br />

Rural Independent Companies,<br />

presented the model to staff members of<br />

the FCC Wireline Competition Bureau.<br />

They explained that the model could help<br />

rural providers predict capital expenditures<br />

and could help policymakers evaluate<br />

the national cost of deploying a highcapacity<br />

terrestrial broadband network.<br />

In addition, they said, the model<br />

could be used to develop an upper limit<br />

on “reasonable” capital expenditures for<br />

telcos subject to rate-of-return regulation<br />

and to help choose among competing recipients<br />

in light of funding limitations.<br />

“We were very warmly received by<br />

the FCC,” Thompson says. “The FCC<br />

was extremely positive. They were very<br />

excited – they’d never seen any sort of<br />

analysis with the level of accuracy that<br />

we appear to have.”<br />

Thompson hopes to continue the<br />

study to make the model still more useful.<br />

“There are rough edges we’re working<br />

to refine,” he explains. For example,<br />

the “soils texture” variable does not<br />

seem to reflect actual costs in rocky and<br />

clay soil areas, and an enhanced measure<br />

of soil difficulty might improve the<br />

model’s accuracy.<br />

Most important, however, is augmenting<br />

the data set with results from<br />

additional deployments. One limitation<br />

of the current data is that the 63 telcos<br />

whose data was used are located in 15<br />

upper central and southeastern states.<br />

The West Coast, Southwest and Northeast<br />

are not well represented, and the<br />

model may be less applicable to those<br />

regions. Vantage Point has invited other<br />

engineering companies and telcos to<br />

contribute their data and help build a<br />

truly national cost model. BBP


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technology<br />

Making the Most<br />

Of a <strong>Fiber</strong> Network<br />

An all-fiber network isn’t just a high-powered version of a traditional<br />

copper network. It offers entirely new opportunities – and poses entirely<br />

new challenges as well.<br />

By Irit Gillath ■ Telco Systems<br />

Created in 1953 to provide telephone<br />

service to residents in<br />

remote areas of Alaska, Matanuska<br />

Telephone Association (MTA)<br />

was challenged to meet the bandwidth<br />

needs of its customers, who span a<br />

10,000-square-mile area from just north<br />

of Anchorage to just south of Fairbanks.<br />

It found a solution by replacing copperbased<br />

services with optical fiber.<br />

Just five years ago, MTA began offering<br />

transparent LAN and Metro Ethernet<br />

services to schools and businesses,<br />

and it has now started to connect cell<br />

nue or aiming to improve services to the<br />

community may find it can leverage its<br />

investment in fiber to create a multiservice<br />

Ethernet network that can support<br />

customers for many years to come.<br />

ServInG BuSIneSS CuStOMerS<br />

Even though residential services continue<br />

to grow and new customers sign<br />

up for services every day, return per residential<br />

customer is not high. However,<br />

business customers are also looking for<br />

new broadband services and are willing<br />

to pay for them accordingly.<br />

Companies want higher data speeds,<br />

Business customers are looking for new<br />

broadband services, such as off-site storage and<br />

cloud computing, and are willing to pay for them.<br />

sites with fiber. Today, MTA supports a<br />

true multiservice offering that provides<br />

residents, corporations, government entities<br />

and mobile operators a secure and<br />

reliable Carrier Ethernet network.<br />

Matanuska leveraged its investment<br />

in fiber to offer a diversified portfolio<br />

of services that extends well beyond fiber<br />

to the home, fulfilling its mission<br />

to provide state-of-the-art, reliable and<br />

competitively priced communications<br />

that contribute to community economic<br />

development.<br />

As Matanuska’s example shows, any<br />

company seeking new sources of reve-<br />

both upstream and downstream. They<br />

also want higher quality of service to<br />

enable applications such as off-site or<br />

online storage, cloud computing, Webbased<br />

training and support services,<br />

customer portals and high-definition<br />

videoconferencing.<br />

110 | BROADBAND PROPERTIES | www.broadbandproperties.com | March/april 2011<br />

According to research firm Vertical<br />

Systems Group in its August 2010<br />

Global Provider Ethernet Leaderboard,<br />

“Demand for global business Ethernet<br />

services was solid in the first six months<br />

of 2010. … Projected double-digit port<br />

growth rates remain on target for 2010<br />

across all regional Ethernet services<br />

markets.” There’s a good reason for that<br />

growth: Ethernet is no longer just an<br />

enterprise best-effort technology but has<br />

moved into the carrier networks, where<br />

it is displacing legacy time-division multiplexing<br />

(TDM) technology.<br />

The Carrier Ethernet services market<br />

is in the growth phase of its product life<br />

cycle because of the standardization of<br />

switched Ethernet products such as Ethernet<br />

virtual private line (EVPL) and<br />

virtual private LAN service (VPLS).<br />

CArrIer etHernet CHAllenGeS<br />

AnD SOlutIOnS<br />

Corporations may require their service<br />

providers to commit to the level of the<br />

service promised, demanding assured<br />

service rather than best-effort service. In<br />

some cases, they require a service-level<br />

agreement (SLA) for each service they<br />

purchase based on the criticality of the<br />

service to business operations, application<br />

About the Author<br />

Irit Gillath is vice president for IP product line management and business development<br />

at Telco Systems, which specializes in Carrier Ethernet solutions. You can reach<br />

her at 785-843-0695 or by email at igillath@telco.com. Find out more at www.<br />

telco.com.


latency and packet-loss requirements,<br />

and other considerations.<br />

In the last 10 years, many standards<br />

organizations, including the Institute<br />

of Electrical and Electronic Engineers<br />

(IEEE) and International Telecommunication<br />

Union Telecommunication<br />

Standardization Sector (ITU-T), as well<br />

as industry groups such as the Metro<br />

Ethernet Forum (MEF), have finalized<br />

technologies to support the demanding<br />

requirements of the carrier market.<br />

These include link, transport and service<br />

operations, administration and<br />

maintenance (OAM) schemes.<br />

By ensuring that the solutions they<br />

deploy adhere to approved standards for<br />

OAM test and measurement applications,<br />

providers can guarantee that their<br />

networks will support the levels of service<br />

promised and will do so even when<br />

network equipment is supplied by multiple<br />

vendors.<br />

Providers in the United States also<br />

continue to maintain legacy T1 services<br />

to businesses and cannot risk cannibalizing<br />

this service offering while<br />

they migrate to IP networks. Carrier<br />

Ethernet offers service providers an opportunity<br />

to migrate TDM traffic onto<br />

a fiber-based IP network through the<br />

use of pseudowire or circuit-emulation<br />

services. Voice can be transformed<br />

into VoIP, and a provider can consolidate<br />

voice, video and data over a single,<br />

highly resilient network capable of scaling<br />

well beyond 10GE.<br />

MOBIle BACkHAul ServICeS<br />

As more and more customers adopt<br />

smartphones and use them for a growing<br />

number of services, the mobile telecommunications<br />

market is experiencing<br />

unprecedented growth. The smartphone<br />

applications market is booming, and<br />

hundreds of new apps are introduced<br />

every day. This growing number of services<br />

and devices is creating an explosive<br />

demand for bandwidth.<br />

In fact, according to a recent report<br />

by industry analyst Chetan Sharma of<br />

Chetan Sharma Consulting, total U.S.<br />

mobile data traffic was projected to<br />

exceed 1 exabyte (1 billion gigabytes)<br />

for the first time by the end of 2010.<br />

Sharma also predicted that the average<br />

technology<br />

<strong>Fiber</strong> is the optimal architecture for mobile<br />

backhaul in most areas. It overcomes the distance<br />

limitations of copper and the load sharing and<br />

aggregation challenges of microwave.<br />

U.S. consumption of mobile data would<br />

reach about 325 MB per month, reflecting<br />

a 112 percent increase from 2009. In<br />

the third quarter of 2010, the U.S. mobile<br />

data market grew 25 percent to total<br />

about $14 billion, thanks to continued<br />

heavy demand for smartphones.<br />

But while mobile traffic is going up,<br />

revenue is going down. Data now accounts<br />

for about 33 percent of the average<br />

revenue per user (ARPU) for U.S. operators.<br />

To minimize the cost of delivering<br />

these services and improve ARPU while<br />

providing the bandwidth scalability to<br />

meet future needs, mobile providers must<br />

switch to Ethernet-based backhaul.<br />

To provide sufficient bandwidth<br />

to smartphone users, mobile providers<br />

have to increase the bandwidth they deliver<br />

to every cell tower. Many backhaul<br />

technologies are in use today. Which<br />

one is used in any area depends on its<br />

geography, topology, datacom history,<br />

climate and population density, as well<br />

as the mobile operators serving the area<br />

and other market conditions. The technologies<br />

most commonly deployed are<br />

copper, microwave and fiber.<br />

Copper can provide capacity of up to<br />

100 Mbps but may actually deliver lower<br />

bandwidth and has significant distance<br />

limitations. The quality and reliability<br />

of service is dependent on how well the<br />

infrastructure is maintained. Scalability<br />

is limited, as is availability of additional<br />

copper. On the other hand, copper does<br />

support native TDM and Ethernet.<br />

Microwave offers very high reliability<br />

at a moderate cost. It can provide the<br />

higher bandwidth that mobile providers<br />

need, but its capacity is dependent<br />

on the distance between the antennas<br />

and on the topology and climate of the<br />

service area.<br />

<strong>Fiber</strong> provides the highest capacity –<br />

it can easily offer more than 10 Gbps per<br />

link over practically unlimited distance.<br />

The distance that the signal will carry<br />

without degrading is determined by the<br />

electronics used for the link rather than<br />

the medium itself, which in turn makes<br />

this medium future proof. It offers very<br />

high reliability and the ability to combine<br />

TDM and Ethernet.<br />

The optimal backhaul architecture<br />

solution will probably be fiber, combined<br />

with microwave for remote areas.<br />

In fact, because some fiber solutions<br />

actually overcome the load sharing and<br />

aggregation challenges experienced with<br />

microwave, fiber is even more effective<br />

for this application.<br />

MOBIle BACkHAul CHAllenGeS<br />

AnD SOlutIOnS<br />

Mobile backhaul involves quite a few<br />

challenges. Any radio access network<br />

generally contains multiple generations<br />

of cellular technologies from different<br />

vendors, each based on a different standard.<br />

Although some newer sites may<br />

have only the latest cellular standard,<br />

most existing sites maintain some remnants<br />

of older technology and off-load<br />

only data onto the new generation of<br />

technology. As a result, one of the most<br />

important requirements for backhaul solutions<br />

is to be able to interconnect with<br />

multiple generations of mobile technology<br />

within a site and across multiple cell<br />

sites, supporting multiple protocols over<br />

the same transport infrastructure.<br />

Unlike residential FTTH, in which<br />

each link serves only small number of<br />

end users, a single cell site can serve a<br />

very large number of end users. Network<br />

failure is not acceptable, and even<br />

small errors in backhaul provoke service<br />

calls. Therefore, resiliency and network<br />

redundancy are critical requirements.<br />

Newer standards, such as G.8031<br />

and G.8032, which allow for sub-50<br />

March/april 2011 | www.broadbandproperties.com | BROADBAND PROPERTIES | 111


millisecond switching of a service or<br />

path to an alternative route once the<br />

quality falls below a specific threshold,<br />

is becoming extremely attractive to mobile<br />

operators.<br />

Cell sites, like many commercial applications,<br />

must support legacy T1 circuits<br />

for the older mobile technologies<br />

in many sites. Once again, providers can<br />

support T1 without maintaining costly<br />

copper connections by using pseudowire,<br />

circuit emulation or TDM over IP<br />

on fiber infrastructures.<br />

Finally, clock synchronization poses<br />

a major challenge for backhauling multiple<br />

cell site technologies. Although<br />

2G and 3G technologies typically use<br />

frequency-division duplex (FDD) multiplexing,<br />

which requires frequency<br />

synchronization, 4G technologies such<br />

as LTE and WiMAX are time-division<br />

multiplexed and require both frequency<br />

and phase synchronization.<br />

There are several ways to maintain<br />

base station timing and synchronization.<br />

Among the schemes commonly<br />

found in this market are the following:<br />

• IEEE 1588v2 is a packet-based protocol<br />

and is carried in-band with<br />

user traffic. It can support highly<br />

accurate frequency and phase synchronization<br />

required by 4G technologies.<br />

In addition, devices in the<br />

path that do not support 1588v2<br />

will transparently pass the protocol,<br />

eliminating the need to replace these<br />

devices while allowing sync requirements<br />

to be met. However, 1588v2<br />

can be affected by network congestion<br />

if it is not properly prioritized<br />

across the path.<br />

• Sync-E (based on ITU-T G.8261)<br />

is a physical layer technology and is<br />

not affected by network congestion.<br />

However it requires that every node<br />

in the path have hardware support<br />

for Sync-E. Unfortunately, Sync-E<br />

does not support phase synchroniza-<br />

technology<br />

Operators can support legacy T1 circuits by using<br />

pseudowire, circuit emulation or TDM over IP<br />

on their fiber infrastructures.<br />

tion, so in order to support 4G technologies,<br />

Sync-E needs to be supplemented<br />

by 1588v2 or some other<br />

mechanism to provide the phase<br />

synchronization requirement.<br />

• GPS-based synchronization uses<br />

timing received from satellites,<br />

which presents installation, reception<br />

and security concerns.<br />

Additional requirements and challenges<br />

include the ability to easily configure<br />

end-to-end services, remotely<br />

manage and maintain the equipment<br />

and monitor and report on service assurance<br />

using a simplified management<br />

solution.<br />

enABlInG AnD SCAlInG<br />

MultIPle ServICeS<br />

As providers deploy a wider range of<br />

services to mobile devices, businesses<br />

and homes, they need unified networks<br />

that support the requirements of these<br />

services at a cost that enables them to<br />

maintain, or even increase, their ARPU.<br />

One way to unify a multiservice<br />

network is through multiprotocol label<br />

switching (MPLS), a mechanism for<br />

forwarding packets based on their labels<br />

without having to examine the packets<br />

themselves. This enables multiple protocols<br />

and services to coexist easily – service<br />

providers can carry many different<br />

types of traffic, such as L2 Ethernet,<br />

supervisory control and data acquisition<br />

(SCADA), TDM and Asynchronous<br />

Transfer Mode (ATM), using the same<br />

112 | BROADBAND PROPERTIES | www.broadbandproperties.com | March/april 2011<br />

transport protocol while guaranteeing<br />

a different service level for each service<br />

and each customer or endpoint.<br />

MPLS also offers options for carriers<br />

to optimize their infrastructures by<br />

using sophisticated management techniques<br />

such as VPLS and hierarchical<br />

VPLS (HVPLS) in the access network.<br />

In a LAN data network, virtual local<br />

area networks (VLANs) are used to<br />

separate different services and customers.<br />

However, VLANs are limited to 4K<br />

(4,096) per trunk and thus are not very<br />

scalable in a metro network in which a<br />

service provider may have tens of thousands<br />

of services and customers. To address<br />

this limitation, many providers are<br />

looking to distribute network intelligence<br />

outward from the core MPLS network<br />

and move it closer to customers.<br />

Placing more intelligent devices in<br />

the access network saves core network<br />

resources (CPU cycles, expensive ports<br />

and bandwidth), allows the network to<br />

scale to provide significantly more services<br />

to more customers, and makes the<br />

network more deterministic. By incorporating<br />

MPLS and related technologies<br />

such as VPLS and hierarchical quality<br />

of service (HQoS) into the access network,<br />

the network can scale to support<br />

up to 1 million individual services and<br />

customers and provide more granular<br />

classes of service.<br />

OPerAtIOnAl CHAllenGeS FOr<br />

MultIServICe netWOrkS<br />

Providers must continue to serve customers<br />

who are satisfied with the status<br />

quo as well as those who demand new<br />

services. Thus, they need to design networks<br />

that can offer both legacy-based,<br />

TDM services and next-generation,<br />

packet-based services.<br />

However, next-generation services<br />

can be difficult to manage. Even though<br />

Moving intelligence from the core network to the<br />

access network allows the network to scale to<br />

support up to 1 million services and customers<br />

and provide more granular classes of service.


Metro Ethernet standards have evolved<br />

to help service providers configure multivendor,<br />

high-bandwidth networks that<br />

are equipment-agnostic, they also make<br />

Ethernet networks more complicated<br />

to configure and provision. Supporting<br />

packet-based network services can represent<br />

a significant challenge for existing<br />

staff who may be more familiar with<br />

TDM or LAN networks.<br />

Therefore, a significant challenge is<br />

to simplify installation, service turn-up,<br />

service validation, service monitoring,<br />

and fault isolation and minimize the<br />

number of devices that must be programmed<br />

to turn up a new customer<br />

service. Sophisticated network management<br />

tools make this an easier task and<br />

create a better user experience for subscribers<br />

and operators alike.<br />

Equipment energy requirements can<br />

also be a large part of the overall operational<br />

costs of the network. The solution<br />

must support the features required for<br />

the service and do so as efficiently as<br />

®<br />

technology<br />

Commercial services and mobile backhaul offer<br />

new revenue streams from fiber infrastructure.<br />

The tools, products and solutions are available to<br />

take advantage of this opportunity.<br />

possible to minimize electricity usage.<br />

Deploying a multiservice metro<br />

Ethernet network requires a delicate<br />

balancing act between product cost and<br />

operational cost. Making efficient use of<br />

both network and personnel resources<br />

can minimize costs, maximize customer<br />

benefits and increase potential revenues.<br />

SuMMAry<br />

Commercial services and mobile backhaul<br />

offer a huge opportunity to use existing<br />

fiber infrastructure to realize new<br />

revenue streams. Solutions are available<br />

to overcome the challenges presented<br />

in this article, and many providers are<br />

already deploying them. Implementing<br />

MPLS at Layer 2 reduces opex and capex<br />

and enhances Ethernet service scalability,<br />

traffic engineering and robust<br />

network resilience by using redundant<br />

ring topologies with path protection.<br />

Other standards, such as MEF-certified<br />

and standards-based OAM, allow providers<br />

to manage, monitor and report<br />

adherence to customer SLAs and optimize<br />

network transport performance.<br />

The opportunity is out there, and the<br />

tools, products and solutions are available.<br />

Is your company going to take advantage<br />

of it? BBP<br />

March/april 2011 | www.broadbandproperties.com | BROADBAND PROPERTIES | 113


technology<br />

Fundamental FttH<br />

Planning and Design: Part 2<br />

Configuration of fiber feeder routes has a great impact on deployment cost –<br />

and the principles aren’t at all intuitive.<br />

By David Stallworth ■ OFS<br />

Part 1 of Fundamental<br />

FTTH Planning and<br />

Design (in the January/February<br />

issue of <strong>Broadband</strong><br />

<strong>Properties</strong>) discussed<br />

the positioning of central<br />

offices (COs), nodes, splitter<br />

cabinets, splitters and drop<br />

closures. This article focuses<br />

on configuring the fiber<br />

routes out of these facilities.<br />

The same study technique<br />

we used for positioning network<br />

elements can be used to<br />

determine the ideal configurations<br />

for fiber feeder routes.<br />

Figure 1 shows the two kinds<br />

of feeder cables – a main feeder, which<br />

originates in a CO, node or cabinet, and<br />

branch feeders, which terminate in a<br />

main feeder cable.<br />

Suppose a CO, node or cabinet has<br />

been placed in the middle of its service<br />

area. How many cables should come out<br />

of it, and how should they be routed?<br />

This is a very serious question, as the answer<br />

can significantly affect total cost.<br />

Figure 2 shows some possible variations<br />

in feeder route design. We studied<br />

these and other variations to determine<br />

the most economical configuration for<br />

the main and branch feeder routes.<br />

Figure 3 shows the ideal configuration<br />

we developed six years ago after extensive<br />

study and verified with 150,000<br />

homes passed. With four main feeder<br />

routes from the CO or node, this design<br />

serves an equal number of facilities on<br />

each route and minimizes the sum of<br />

the distances to customer locations.<br />

Figure 1: Main and Branch Feeders<br />

Figure 2: Possible Feeder Route Configurations<br />

114 | BROADBAND PROPERTIES | www.broadbandproperties.com | March/april 2011<br />

The figure also shows<br />

how branch feeder routes<br />

should be deployed. Notice<br />

that they are perpendicular<br />

to the main feeder routes,<br />

not parallel to them. Paralleling<br />

a main route may require<br />

building more infrastructure<br />

to reach the same<br />

number of customers.<br />

SettInG BOunDArIeS<br />

The last item to discuss is the<br />

designation of boundaries between<br />

the feeder routes. Note<br />

the boundary lines exiting<br />

the CO at 45-degree angles<br />

About the Author<br />

David Stallworth is the design and product manager at OFS, a manufacturer of optical<br />

fiber and connectivity solutions. You can reach him at 770-798-2423 or by e-mail<br />

at dstallworth@ofsoptics.com.


technology<br />

The ideal configuration for fiber routes involves four main feeder<br />

routes placed at 90-degree angles to one another, with branch routes<br />

perpendicular to them. Of course, the real world is a little more complicated.<br />

to the end of the study area.<br />

These separate the routes<br />

and define which route will<br />

serve each customer. Placing<br />

boundaries allows a designer<br />

to identify the area served<br />

by each main feeder and<br />

makes planning for future<br />

demand easier. The bound-<br />

aries also serve to minimize<br />

the distance from the CO to<br />

each customer.<br />

There is no ideal number<br />

of branch feeder routes.<br />

The number used depends<br />

on the density and size of<br />

the area and sometimes<br />

also on whether splitters<br />

are centralized in cabinets<br />

or distributed in each PON<br />

area. Branch feeder routes are also determined<br />

by road configuration and the<br />

number of units served in each area.<br />

Generally, a single branch feeder<br />

should serve an area that is consistent<br />

in nature. For example, serving a business<br />

area and a residential area with two<br />

separate branch feeders may be a good<br />

idea. This requires establishing a branch<br />

feeder route boundary between residential<br />

and business areas and placing two<br />

branch routes with different paths from<br />

the main feeder into these two areas.<br />

However, the goal of creating uniform<br />

service areas must be balanced<br />

against the competing goal of keeping<br />

the total number of branch feeders low<br />

to minimize infrastructure and cable<br />

cost. Street layout further limits the<br />

choices for feeder routes. Good engineering<br />

judgment is vital in establishing<br />

the branch feeder routes properly.<br />

Locating the main feeder route relative<br />

to the main feeder boundaries is<br />

very important. Generally, the most<br />

economical place for a main feeder route<br />

is in the middle of the area it is going to<br />

Figure 3: Ideal Feeder Route Design<br />

serve. This keeps the branch feeders relatively<br />

short and helps reduce total length<br />

to the CO in the long run.<br />

In the same way, a branch feeder route<br />

should bisect the area this feeder will<br />

serve. Nature follows the same principle<br />

– a river or creek generally runs through<br />

the middle of the valley it drains.<br />

SuBDIvIDInG tHe AreAS<br />

Once the main feeder and branch feeder<br />

routes have been established along with<br />

the associated boundaries, the areas defined<br />

by the branch feeder route boundaries<br />

can be further divided up into<br />

small serving areas. These serving areas<br />

are defined by the size of the facilities<br />

that will serve them. For instance, if a<br />

PON technology is used and the optical<br />

splitters will be deployed in field cabinets,<br />

each branch feeder area can be divided<br />

into cabinet serving areas (CSA).<br />

Creating the CSAs may require some<br />

boundary adjustment so that the number<br />

of homes served by each cabinet is<br />

roughly equal.<br />

The size of each CSA is determined<br />

by the size of the cabinets to be deployed.<br />

(The optimum cabinet size<br />

for most urban areas is between<br />

256 and 288 homes).<br />

Therefore, it is important to<br />

determine cabinet size before<br />

designing CSAs. If an optical<br />

splitter is to be deployed<br />

in each 32-customer PON<br />

area, the area should be subdivided<br />

into 32-customer<br />

PON areas. If a switched<br />

Ethernet solution is to be<br />

deployed, the cabinets will<br />

not hold splitters but rather<br />

will act like cross boxes in<br />

the copper world, distributing<br />

and adding feeder as<br />

needed. In either case, once<br />

the cabinet size is known,<br />

feeder areas can be divided<br />

into appropriate sizes and each cabinet<br />

can be located in the middle of the area<br />

it serves.<br />

A tyPICAl APPlICAtIOn<br />

Applying the ideal configuration to an<br />

actual area is, of course, somewhat more<br />

complicated.<br />

The map in Figure 4 depicts the major<br />

portion of a town we’ll call <strong>Fiber</strong><br />

City. Several items of interest show up in<br />

the map. First, the railroad tracks (green<br />

east-west lines) split the city into two<br />

different demographic areas. The area<br />

north of the tracks has a lower-income<br />

population in smaller living units. The<br />

area south of the tracks consists of the<br />

downtown, with commercial buildings<br />

and higher-end residential areas.<br />

The CO that serves <strong>Fiber</strong> City is located<br />

downtown. This location, the central<br />

point for terminating all the fiber,<br />

has ample floor space for fiber termination<br />

bays and associated equipment. It is<br />

located near the geographical center of<br />

the town, although the town is growing<br />

mainly in the south. The malls are<br />

located to the east of the central town<br />

March/april 2011 | www.broadbandproperties.com | BROADBAND PROPERTIES | 115


area and are surrounded by a large commercial<br />

area.<br />

<strong>Fiber</strong> City has two other telephone<br />

office locations south of the downtown<br />

area and CO. These two office locations<br />

will be interconnected with the CO in a<br />

ring configuration.<br />

tHe FIBer CIty DeSIGn<br />

Natural and manmade structures often<br />

make very good boundaries for feeder<br />

routes. The difficulty of crossing these<br />

structures limits options for serving locations<br />

on the far side – which is true of<br />

the railroad tracks in <strong>Fiber</strong> City. Also,<br />

keeping different types of areas separate<br />

is useful when deployment time approaches.<br />

Establishing the railroad tracks as<br />

boundaries helped minimize the numbers<br />

of crossings needed except for possible<br />

ring configurations between feeder<br />

routes. The east-west routes of the railroad<br />

tracks in <strong>Fiber</strong> City were selected as<br />

route boundaries for the these reasons.<br />

Four feeder routes were extended<br />

from the downtown CO, with the<br />

northern route slightly bent to the right<br />

to take advantage of the large number of<br />

apartments north of a university.<br />

Density pulled the route in that direction,<br />

as the area directly north of the<br />

CO does not extend very far and is not<br />

densely populated.<br />

Figure 4: <strong>Fiber</strong> City Before <strong>Fiber</strong><br />

technology<br />

The feeder route to the east extends<br />

into the industrial park occupied by<br />

several large industries. This route also<br />

feeds a large portion of the commercial<br />

area around the two malls.<br />

The southerly feeder route was initially<br />

developed in a direction directly<br />

Figure 5: <strong>Fiber</strong> City – The Final Design<br />

116 | BROADBAND PROPERTIES | www.broadbandproperties.com | March/april 2011<br />

south of downtown but was later adjusted<br />

to include existing fiber routes<br />

and the two <strong>Fiber</strong> City telephone offices<br />

located in the south serving area.<br />

The westerly route was selected to be<br />

approximately in the middle of the western<br />

area. It extends into the rural area to<br />

connect to a trunk route to another city.<br />

Boundaries between the eastern and<br />

southern routes were selected to provide<br />

a middle break between the routes, as<br />

was the boundary between the southern<br />

and western feeder routes. The map<br />

in Figure 5 shows the final plan for<br />

<strong>Fiber</strong> City’s fiber network, which can<br />

ultimately serve every living unit in<br />

the town.<br />

The plan also shows the number of<br />

fibers needed for each main and branch<br />

feeder, based on the number of units<br />

served divided by 32. To arrive at an<br />

estimate of the total fiber needed, this<br />

base number was multiplied by 1.5 and<br />

added to the number of trunk fibers<br />

needed for connections to other towns.<br />

This 1.5 multiplier was requested by<br />

<strong>Fiber</strong> City; the appropriate multiplier<br />

may vary for each route, depending on<br />

growth assumptions. It’s a good idea to<br />

leGenD:<br />

Blue = Main feeder Light blue = Branch feeder<br />

Yellow = Feeder boundaries


study growth patterns for each route<br />

and decide how many fibers will be<br />

needed for new developments. The local<br />

governing authority may have developed<br />

land usage plans that can help forecast<br />

growth patterns for each area.<br />

Not all these fibers need to be placed<br />

at the outset – the procedure simply<br />

provides a way to calculate how many<br />

fiber cables will be needed eventually so<br />

the supporting infrastructure (conduit,<br />

handholes, aerial strand, innerduct and<br />

so forth) can be determined. For example,<br />

a company may decide to size its<br />

main feeder cables to last 10 to 15 years<br />

while sizing branch feeder cables to accommodate<br />

long-term growth. Budget<br />

limitations and engineering judgment<br />

can be combined to arrive at the<br />

best solution.<br />

Finally, fundamental fiber planning<br />

should include provisions for all types<br />

of future services. For example, planners<br />

should consider the possibility that<br />

high-end data users may require diverse<br />

You have a lot on the line with this broadband project.<br />

Give your project team and stakeholders the advice<br />

and knowledge they need to ensure success.<br />

<strong>Broadband</strong> business strategy expert Craig Settles delivers<br />

customized on-site training that puts your team on top of its<br />

game. He presents the inside scoop on how to:<br />

• identify potential subscribers you otherwise might miss<br />

• tackle key business tasks - from developing business<br />

models and partnerships to launching your network<br />

• generate sales and also fend off<br />

competitors who want to steal your sales<br />

• use broadband to improve local<br />

economic development<br />

technology<br />

Today’s FTTH platforms support both active<br />

Ethernet and PON from the same chassis.<br />

Planners should take advantage of this<br />

capability and use the right technology<br />

in the right place for the right customers.<br />

routes to ensure 24/7 connectivity. To<br />

accommodate these potential users in a<br />

plan developed primarily for PON service,<br />

including a buffer tube of 12 fibers<br />

or more for active Ethernet service may<br />

be advisable.<br />

A fiber ring for users that require<br />

redundant routes can be developed by<br />

connecting two branch feeders from<br />

two different feeder routes and sizing<br />

the cables properly in both routes back<br />

to the CO. In fact, all four main feeder<br />

routes can be tied together in this fashion<br />

to create a ring around the entire city<br />

fed by legs from the CO. This “multiple<br />

design” can take advantage of both active<br />

Ethernet and PON technologies.<br />

Today’s FTTH platforms support both<br />

active Ethernet and PON from the same<br />

chassis; planners should take advantage<br />

of this capability and use the right<br />

technology in the right place for the<br />

right customers.<br />

Fundamental planning is an important<br />

first step in deploying fiber in any<br />

area. I hope this discussion will act as a<br />

guide to developing a plan that will be<br />

viable and economical. BBP<br />

Give Your <strong>Broadband</strong> Project Team Wings!<br />

“Our expectations were clearly met, not only<br />

because of the high quality of the content, but also<br />

Mr. Settles’ presentation skills. We recommend<br />

Mr. Settles’ presentation services to anyone who<br />

is interested in broadband.”<br />

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Technology Specialist; Inter-American Development Bank<br />

“Craig Settles has been instrumental in helping<br />

our organization develop a strategy to move<br />

our wireless network initiative forward. He is<br />

very knowledgeable and his presentations have<br />

substance.”<br />

Imelda Bickham, former CIO; City of Glendale, CA<br />

You want a great training session?<br />

Call Craig Settles today at 510-536-4522!<br />

Get more details on his workshop topics at<br />

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Craig Settles’ presentations always get rave reviews!<br />

March/april 2011 | www.broadbandproperties.com | BROADBAND PROPERTIES | 117


marKeting<br />

Community <strong>Fiber</strong> Networks<br />

Succeed through Marketing<br />

Marketing is about more than ads and billboards, say managers of<br />

community broadband networks. It involves learning what customers<br />

expect – and meeting those expectations.<br />

By Craig Settles ■ Communities United for <strong>Broadband</strong><br />

Marketing often means the difference<br />

between success and<br />

failure. Community broadband<br />

operators, including municipalities,<br />

nonprofits and co-ops, must understand<br />

early that, although serving the<br />

public good is a common and worthwhile<br />

reason for building a network, the<br />

network’s future is uncertain at best if<br />

it doesn’t generate enough revenue. Effective<br />

marketing is the way to generate<br />

that revenue.<br />

a student at the University of Wisconsin,<br />

Platteville, Rice worked as an intern<br />

at Genuine Telecom, a company with<br />

which RUC had a relationship. When<br />

RUC launched its network in 2003, it recruited<br />

Rice to take the marketing helm.<br />

RUC and the local government began<br />

exploring the option of building a<br />

network for this town of 9,000 while<br />

the utility was planning to upgrade its<br />

electricity service infrastructure, a project<br />

that began in 2000. “RUC hired a<br />

The controversy generated by Reedsburg’s<br />

decision to offer community broadband created<br />

public awareness of the network and forced the<br />

municipality to make its case to the public.<br />

Reedsburg, Wisc., and Jackson,<br />

Tenn., have done tremendous jobs marketing<br />

their public utility–run networks<br />

in the face of stiff competition and opposition<br />

from incumbent providers.<br />

Both entered the community broadband<br />

game quite early – 2003 and 2004,<br />

respectively – and definitely have earned<br />

the moniker “pioneers.”<br />

MArketInG BeGInS On DAy One<br />

Catherine Rice, marketing and sales<br />

director for Reedsburg Utility Commission<br />

(RUC), can honestly say her<br />

marketing career has grown along with<br />

RUC’s marketing program. In 2002, as<br />

marketing firm to come in and do surveys<br />

to see if consumers wanted another<br />

provider,” says Rice.<br />

The two main incumbent providers<br />

were Verizon, whose wireline assets were<br />

later bought by Frontier, and Charter<br />

Communications. “Customer feedback<br />

strongly supported the desire for an addi-<br />

118 | BROADBAND PROPERTIES | www.broadbandproperties.com | March/april 2011<br />

tional Internet and cable provider,” Rice<br />

says. “RUC was building an extension<br />

to its electricity infrastructure, so the<br />

company decided to lay fiber in test beds<br />

simultaneously since it would be less expensive<br />

than building out from scratch.<br />

Once that buildout was completed, the<br />

formal marketing campaign started.”<br />

In many respects, however, the marketing<br />

began with the initial surveys.<br />

Rice continues, “All the discussions<br />

about whether to proceed were open to<br />

the public, and this helped a lot. The<br />

city council and the mayor frequently<br />

talked about the network, so the community<br />

was aware of what was coming.<br />

There was a lot of resistance, and RUC<br />

had to jump through hurdles to become<br />

a competitive local exchange carrier<br />

(CLEC). There were often questions<br />

about ‘should a government entity be<br />

providing telecom services.’ A couple of<br />

bills were written that tried to prevent<br />

the network [from being built], but the<br />

council decided to let this go through.”<br />

tHe uPSIDe OF COntrOverSy<br />

The controversy that exploring community<br />

broadband generated had two<br />

positive outcomes: First, it created much<br />

awareness through the resulting publicity,<br />

About the Author<br />

Craig Settles, the cofounder of Communities United for <strong>Broadband</strong>, is an industry<br />

analyst and broadband strategy consultant who delivers on-site training to private-<br />

and public-sector organizations. Follow him on Twitter (@cjsettles) and on his blog,<br />

Fighting the Next Good Fight (http://roisforyou.wordpress.com).


and second, the municipality and utility<br />

had to prove their case to the public. By<br />

winning support from key stakeholders<br />

and elected officials early on, RUC built<br />

a stronger position from which to market<br />

its broadband services. The community<br />

understood and supported the network<br />

before it was a reality.<br />

As the network went live in 2003,<br />

Rice and RUC used the pride of community<br />

ownership generated through<br />

those public discussions to fuel their<br />

marketing campaign. Rice says, “We<br />

heavily promoted the fact that we’re the<br />

local provider, RUC’s been here since<br />

1894, and we’re up front. The incumbents<br />

are very contract-focused. We<br />

avoided adding fine print and openly<br />

address all aspects of our services. We<br />

showed how our bill, when compared to<br />

competitors’ terms and conditions buried<br />

in fine print, turns out to be lower.<br />

Some consumers, particularly the elderly,<br />

had been burned by competitors’<br />

contracts, so they turned to RUC.”<br />

eMPHASIzInG ServICe<br />

AnD vAlue<br />

Of course, a marketing campaign cannot<br />

rely just on the theme “We’re the<br />

hometown team.” It also cannot subsist<br />

solely on flashy ads and promotional<br />

materials. RUC understands that offering<br />

a better service is crucial. Says Rice,<br />

“We emphasized service and value. We<br />

structured our service packages to be<br />

similar to what the existing providers<br />

were offering but tweaked ours with a<br />

couple of new services on the cable side,<br />

plus more bandwidth and offerings on<br />

the Internet access side.”<br />

Regarding telephone service, RUC<br />

advertised great value for the price, such<br />

as special promotional rates and free<br />

installation when customers signed up.<br />

The broadband service that RUC offered<br />

while it was building out the infrastructure<br />

generated word-of-mouth support.<br />

The utility didn’t lock customers into<br />

three-year contracts. Rice concludes,<br />

“We provide a lot of education about<br />

what to do with our services, particularly<br />

for business customers. Our theory<br />

is that if our service isn’t good enough to<br />

meet your needs, you probably shouldn’t<br />

be a customer.”<br />

marKeting<br />

“Customers remain loyal to us because they<br />

believe, rightly, that RUC has customers’<br />

best interests at heart.”<br />

As its network and marketing efforts<br />

mature, RUC studiously avoids getting<br />

drawn into price wars. “Our competitors<br />

tend to do a lot of price promotions<br />

that are unbeatable, and we can’t match<br />

those,” remarks Rice. “We’ve kept prices<br />

competitive but consistent. Our marketing<br />

strength comes from RUC’s credibility.<br />

I get on the phone sometimes with<br />

people who call in for customer service<br />

or who have a complaint. As I resolve<br />

their issues, I ask them, ‘Who would<br />

you be talking to right now if you had<br />

this problem with another company?’<br />

Customers remain loyal to us because<br />

they believe, rightly, that RUC has customers’<br />

best interests at heart and they<br />

can’t get that level of caring from companies<br />

whose customer service people<br />

are based in another country.”<br />

RUC used relationships with its vendors,<br />

including Calix, to strengthen its<br />

customer-centric marketing hand. “Calix<br />

helped us to choose the correct electronics<br />

to deploy that were appropriate<br />

for our area and our customers’ specific<br />

needs, and this increases our quality of<br />

service,” says Rice. “We were invited to<br />

form quite a few relationships with other<br />

Calix customers to generate and share<br />

ideas. We obtained information and<br />

resources regarding successful FTTH<br />

projects and best practices.”<br />

Marketing based on company credibility<br />

is clearly paying dividends. RUC<br />

is experiencing a 60 percent customer<br />

take rate, which is extraordinary, particularly<br />

given that it faces such fierce competition<br />

from companies many times its<br />

size. The utility has 2,600 customers in<br />

total, including 220 of the 450 businesses<br />

in the community.<br />

nO MOre Mr. nICe AnD FluFFy<br />

When it comes to marketing, “You<br />

can’t be a nice, fluffy businessperson,”<br />

says Michael Johnston, vice president of<br />

IT and broadband for Jackson Energy<br />

Authority (JEA) in Tennessee. As he<br />

learned through rough experience, “You<br />

need to do a gut check. Are you ready to<br />

do the things to take a community network<br />

operation where it needs to be?”<br />

Like Reedsburg, Jackson (population<br />

76,000) began its drive for community<br />

broadband amid controversy that<br />

arose when incumbents objected to the<br />

network and sued JEA. Publicity during<br />

this controversy helped the public utility<br />

build local political support as well<br />

as word-of-mouth stakeholder support<br />

for the network, so it was able to begin<br />

selling services in 2004, the same year it<br />

starting building the network.<br />

JEA launched its network with all<br />

marketing guns blazing. Johnston recalls,<br />

“We were doing everything: paper,<br />

radio, novelties, billboards. We retained<br />

a local marketing firm to help. In the<br />

beginning, our message and the strategy<br />

was all about ‘Come here, come here!’<br />

Our marketing message was focused on<br />

customer acquisition, hitting heavily on<br />

the theme of price, the convenience of<br />

one bill and the fact we had an unbelievable<br />

fiber-to-the-home network.”<br />

Although JEA enjoys the benefit of<br />

being the hometown broadband team,<br />

Jackson is a fairly large market that eventually<br />

required JEA to add more depth<br />

to its marketing strategy. Johnston continues,<br />

“When people in local government<br />

say ‘marketing,’ they often think<br />

only of the pretty stuff – ads, billboards,<br />

flyers. Most Chambers of Commerce<br />

are all about marketing the community,<br />

but this isn’t the kind of marketing that<br />

makes a triple-play [voice, video, Internet<br />

data] service successful.”<br />

The kind of marketing that drives a<br />

telecom company to success entails not<br />

only marketing communications but also<br />

the creation of a product mix that appeals<br />

to prospects while generating a profit.<br />

JEA has reworked its entire service lineup<br />

over the past few years. It continues to<br />

change the marketing mix frequently,<br />

March/april 2011 | www.broadbandproperties.com | BROADBAND PROPERTIES | 119


offering more speeds, more HD channels<br />

and even some channels for free.<br />

Customer service, as always, is a major<br />

component of the marketing effort.<br />

Leveraging the fact that it is not a forprofit<br />

entity trying to return as much as<br />

possible to the investors, JEA can give<br />

customers a greater level of support and<br />

much higher quality of service than its<br />

competitors do. For example, JEA offers<br />

same-day repair service with a four-hour<br />

window for arrival and next-day service<br />

with a two-hour window.<br />

Marketing also entails business development<br />

through building partnerships<br />

with various private, public and<br />

nonprofit organizations. When it explored<br />

the possibility of pursuing broadband<br />

stimulus money to expand its<br />

network, JEA decided that partnerships<br />

with several communities would be vital<br />

not only for winning a grant but also<br />

for successfully marketing the expanded<br />

network if it won the grant. Closing<br />

such deals requires crafting a consistent<br />

marketing message about the value of<br />

the partnerships themselves.<br />

“To make something like this work<br />

across a region, you may have to deal<br />

with nine or 10 different utility companies<br />

and several town councils one at a<br />

time,” says Johnston. “Your pitch to get<br />

them on board is going to come down<br />

to presenting quite a few intangible benefits,<br />

such as better quality of life and<br />

more efficient government services. But<br />

when we met with potential partners, we<br />

emphasized the part of our plan with the<br />

greatest tangible benefit – using broadband<br />

in health care and education.”<br />

tHe COSt OF SuCCeSS<br />

As JEA’s broadband business grew, it had<br />

to face the fact that its marketing was<br />

too successful. This seems so counterintuitive<br />

that few organizations may even<br />

marKeting<br />

Marketing can be too successful. If too many<br />

new customers sign up too quickly, network<br />

operations can implode under the weight of<br />

unbudgeted customer care requirements,<br />

including installation and support.<br />

consider the possibility. However, if marketing<br />

generates too many new customers<br />

too quickly, network operations can<br />

implode under the weight of unbudgeted<br />

customer care requirements.<br />

Success literally has a cost in terms<br />

of the installation, customer service and<br />

technical support that must take place<br />

before customers begin paying monthly<br />

fees. JEA discovered quickly that, in<br />

Johnston’s words, “We screwed this up.”<br />

The number of incoming subscribers<br />

was so far above sales projections that<br />

JEA had to cut back drastically on future<br />

growth. The company has recovered<br />

from this setback and continues to<br />

do well in the face of a constant marketing<br />

barrage from competitors.<br />

Johnston believes there are so many<br />

marketing tasks to master, and competition<br />

is so intense, that community<br />

broadband networks must be tough,<br />

creative and agile in their marketing<br />

execution. Because community broadband<br />

is still such a young movement,<br />

there are only two practical ways to accomplish<br />

this, Johnson believes. “You<br />

need to either ‘buy’ telecom marketing<br />

expertise by hiring someone who used<br />

to work for a Comcast or a Verizon, or<br />

acquire it through brute force learning,<br />

trial and error.”<br />

tIPS FOr MArketInG<br />

BrOADBAnD ServICeS<br />

Reedsburg, Jackson and other communities<br />

offer several good lessons to<br />

broadband marketing teams.<br />

• Execute a good survey during the<br />

needs assessment. That will generate<br />

the market knowledge needed to<br />

create an effective marketing strategy.<br />

In fact, if you ask all stakeholder<br />

groups (businesses, schools, medi-<br />

120 | BROADBAND PROPERTIES | www.broadbandproperties.com | March/april 2011<br />

cal facilities, and so forth) the right<br />

questions, they will tell you just how<br />

to market to them.<br />

• Begin building market awareness<br />

from the moment you decide to explore<br />

a broadband network. Even<br />

if your network project is delayed,<br />

you’ll have a good feel for the potential<br />

depth of support when you eventually<br />

move forward.<br />

• Do not let critics define your broadband<br />

marketing messages. Know how<br />

broadband’s capabilities can impact<br />

various stakeholder groups before<br />

you start, and craft your central message<br />

around these outcomes. You can<br />

change how you say it, but keep the<br />

core message the same so you maximize<br />

every marketing dollar spent.<br />

• As much as possible, segment marketing<br />

messages, promotions and<br />

offers to motivate specific audiences<br />

effectively. “We market a general<br />

package to consumers, businesses<br />

get specialized offers such as for Web<br />

hosting and static IP addresses, and<br />

our large population of elderly who<br />

are snowbirds are billed only for their<br />

time here at home,” states Rice.<br />

• Be prepared to continuously repel<br />

marketing assaults from competitors<br />

without fighting a price war. Use<br />

your organization’s smaller size to<br />

your marketing advantage. Be creative<br />

and nimble, know your marketing<br />

strength (it isn’t always what you<br />

think it is) and play to that strength.<br />

• When partnering for marketing<br />

advantage, fully understand your<br />

partners’ marketing and other business<br />

needs. Without sacrificing your<br />

primary objectives for your network,<br />

continually try to contribute to their<br />

marketing success.<br />

• Remember that political support is<br />

crucial to generating subscribers. It<br />

gives you the marketing strength to<br />

launch the project effectively and<br />

marketing momentum that increases<br />

sales. Involve elected officials early<br />

in developing your marketing messages,<br />

and continuously update them<br />

on your successes. Their comments<br />

reinforce the messages and amplify<br />

the positive word-of-mouth that happens<br />

within the community. BBP


Burlington Telecom, the community-owned<br />

network in Burlington,<br />

Vt., has been in the news recently<br />

because of its financial problems.<br />

As more information emerges about the<br />

causes of Burlington Telecom’s problems,<br />

other community broadband networks<br />

should seize the opportunity to<br />

learn from those mistakes.<br />

Although some critics argue that<br />

high-profile problem projects “prove”<br />

community broadband is a failure, in<br />

reality the private-sector telecom industry<br />

has been littered with failures,<br />

collapses and mergers – does Adelphia<br />

ring a bell? Still, despite decades of private-sector<br />

problems, no one argues that<br />

those problems “prove” the incumbents<br />

should be shut down.<br />

The good news is that community<br />

broadband projects starting up now<br />

should have a much higher probability<br />

of success than the pioneer efforts of the<br />

last 20 years. In this article, I identify<br />

some of the “worst practices” that have<br />

emerged from a wide variety of community<br />

broadband efforts. These problems<br />

fall into three major categories:<br />

• Management deficiencies show up<br />

frequently in both large and small<br />

projects.<br />

• Poor financial decisions can be<br />

linked to inexperience with manag-<br />

community broaDbanD<br />

Worst Practices<br />

In Community <strong>Broadband</strong><br />

Mistakes community broadband networks make – and how to avoid them.<br />

By Andrew Michael Cohill, Ph.D. ■ Design Nine Inc.<br />

ing complex business enterprises.<br />

• If there is a weak point of the openaccess<br />

business model, it is inadequate<br />

marketing based on the assumption<br />

that service providers will<br />

handle that function.<br />

MAnAGeMent PrOBleMS<br />

Letting the network run itself<br />

Some project organizers do initial planning<br />

and fundraising very well but fail<br />

to follow through with strategic and<br />

tactical planning. This problem is most<br />

common when boards of directors have<br />

limited experience managing large enterprises.<br />

It also occurs in projects that were<br />

started primarily with grant funds. One<br />

benefit of the ARRA broadband stimulus<br />

effort was an emphasis on developing<br />

an eight-year financial pro forma.<br />

Setting financial targets and then<br />

measuring progress against those targets<br />

is critically important, as is adjusting the<br />

pro forma at least once a year to match<br />

actual revenue, expenses and income.<br />

Overstaffing<br />

Community broadband start-ups have<br />

to control costs carefully until enough<br />

subscribers are buying services to get the<br />

effort into the black operationally. Overstaffing<br />

is often a byproduct of putting<br />

former telco managers in charge. Their<br />

experience in big companies with large<br />

middle-management staffing plans does<br />

About the Author<br />

Andrew Michael Cohill, Ph.D., is the president of Design Nine (www.designnine.<br />

com), which provides broadband network design and network buildout services.<br />

Specializing in open-access network design, Design Nine has been involved in such<br />

“best practice” projects as nDanville, The Wired Road and Palm Coast <strong>Fiber</strong>NET.<br />

122 | BROADBAND PROPERTIES | www.broadbandproperties.com | March/april 2011<br />

not translate well to community broadband<br />

networks.<br />

Another reason community networks<br />

need fewer staff than equivalent<br />

incumbent operations is that their<br />

brand-new networks do not have the<br />

overhead or complexity of legacy copperbased<br />

coaxial and twisted-pair systems.<br />

Staffing too soon<br />

Staffing is a difficult challenge for startup<br />

networks. Even a small network<br />

needs a certain base level of skills and<br />

expertise, and identifying one or even<br />

two people who can wear all the necessary<br />

hats – management, marketing,<br />

network operations, outside-plant<br />

maintenance, financial oversight and<br />

customer support – can be difficult. As a<br />

result, some projects hire too many people<br />

before the revenue can justify the associated<br />

salaries, benefits and overhead.<br />

Boards of directors of community<br />

broadband projects have to be prepared<br />

to lend some hands-on assistance in the<br />

first year or two to help ameliorate having<br />

too many or too few staff members.<br />

Board members should be selected carefully<br />

based on specific expertise they can<br />

bring the enterprise, such as marketing<br />

experience, financial management or<br />

construction expertise. A well-crafted<br />

board of directors can help fill the gaps<br />

until revenue justifies hiring more workers<br />

with specialized skills.<br />

Another approach is to outsource<br />

some activities temporarily instead of<br />

hiring full-time staff. For example, outsourcing<br />

network operations for a year<br />

or two until the subscriber base grows<br />

may be less expensive than hiring a network<br />

operations specialist.


A private-sector firm that manages<br />

business, institutional or other private<br />

networks can allocate a portion of one<br />

person’s time to the community network<br />

so the network does not have to<br />

pay a full-time staffer.<br />

Maintenance of outside plant (fiber<br />

cable, wireless equipment, splicing) can<br />

also be outsourced to a qualified firm<br />

with equipment, trucks and trained<br />

staff. When a network grows to several<br />

thousand customers, bringing operations<br />

and maintenance in-house becomes<br />

less expensive.<br />

Hiring the wrong manager<br />

One of the “worst practices” I see is<br />

filling senior management positions<br />

without making sure candidates have a<br />

solid understanding of the fundamentals<br />

of community broadband networks.<br />

The business model and the approach<br />

to designing network infrastructure<br />

in community-owned networks differ<br />

from those in telcos. The open-access<br />

approach, coupled with a need to run<br />

a very lean operation for two or three<br />

years, requires an entrepreneurial,<br />

hands-on management approach.<br />

A common hiring error is to look for<br />

managers with telco or cable company<br />

experience on the theory that “they know<br />

telecom.” However, experience with a<br />

large incumbent telco or cable company<br />

does not always translate into the right<br />

work skills for a start-up.<br />

Telephone and cable companies tend<br />

to be big, high-dollar operations with<br />

high staff counts, high overhead and big<br />

expense budgets. Too often, the highbudget<br />

mindset may linger, and taking<br />

someone with a big company background<br />

and putting him or her in charge<br />

of an essentially entrepreneurial start-up<br />

is a recipe for – well, cost overruns.<br />

The first hire for a community network<br />

should be selected with great care.<br />

Getting help writing the job description<br />

and developing the list of roles and responsibilities<br />

may be useful.<br />

Getting assistance with interviewing<br />

candidates may also be wise, as their<br />

technical and business abilities may vary<br />

widely. Interviewers who can ask the<br />

right questions can help boards select<br />

the best-qualified candidates.<br />

community broaDbanD<br />

The financial records of a community network<br />

should be maintained completely separate from<br />

the rest of the parent organization.<br />

POOr FInAnCIAl DeCISIOnS<br />

Spending in advance of revenue<br />

Although overstaffing is the easiest way<br />

to spend too much, start-up projects<br />

can easily bust their budgets with unnecessary<br />

operational expenses. Startups<br />

should look for donated or low-cost<br />

office space, borrowed or budget office<br />

furnishings and even borrowed phone<br />

and Internet services.<br />

I suspect that some ARRA-funded<br />

stimulus projects will make this mistake.<br />

The broadband stimulus grants<br />

can be used only for capital expenditures,<br />

so the first year of operations must<br />

be planned carefully to ensure that overall<br />

operational expenses don’t outrun<br />

projected (and actual) revenue.<br />

Spending capex funds on opex<br />

Managers of some bond-funded projects<br />

have learned, painfully, that spending<br />

money budgeted for capital expenditures<br />

on operational expenses is not a<br />

good idea. Do so long enough, and a<br />

death spiral occurs in which the network<br />

no longer has enough funds to<br />

construct connections to new customers.<br />

Without enough customers, there is<br />

no way to generate enough revenue to<br />

cover operational costs and the interest<br />

and principal payments on debt.<br />

Overreliance on grants<br />

This lesson was one of the first to emerge<br />

from the early round of community<br />

networking efforts in the 1990s. Many<br />

good projects eventually failed because<br />

project leaders incorrectly assumed that<br />

grants could be used to fund their efforts<br />

indefinitely. In project after project,<br />

grant funds eventually became scarce,<br />

and the lack of long-term, sustainable<br />

financial strategies led to the demise of<br />

many efforts.<br />

Grant funds play important roles in<br />

helping get projects off the ground and<br />

helping existing networks expand, but<br />

a solid business plan based on realistic<br />

assumptions about revenue, operational<br />

costs, the cost of debt and the cost of<br />

expansion is critical.<br />

Financial transparency and<br />

poor accounting<br />

Some community projects have run into<br />

difficulty because of poor accounting<br />

practices. Community networks are not<br />

like most other community-focused nonprofits.<br />

A community-owned broadband<br />

network is a business first, and a tight focus<br />

on financial management is essential.<br />

Even if the aim is not to make a<br />

profit, a wide-area network is a complex<br />

undertaking that requires all the typical<br />

bookkeeping activities of any privatesector<br />

business, including accounts payable,<br />

accounts receivable, cash management<br />

and budgeting. Some municipal<br />

broadband project funds have been commingled<br />

with local government general<br />

funds – which can make determining<br />

the financial state of a network difficult.<br />

The financial records of a community<br />

network should be maintained<br />

completely separate from the rest of<br />

the parent organization. For a municipally<br />

owned project, this means using a<br />

mechanism such as an enterprise fund.<br />

For a regional project, it may mean creating<br />

a regional authority, a co-op or<br />

some other independent entity.<br />

Any broadband project established to<br />

serve a region’s broader community and<br />

economic development goals must be<br />

completely transparent about its financial<br />

records. The public should be provided<br />

with regular financial reports that<br />

show the sources of all funds and how<br />

those funds are being spent.<br />

POOr MArketInG DeCISIOnS<br />

Failing to use take-rate commitments<br />

to guide construction and buildout<br />

I can say with some certainty that the<br />

“if we build it, they will come” business<br />

model does not work. Several projects<br />

have gotten into difficult financial<br />

straits by starting at one end of the service<br />

territory and building fiber to the<br />

March/april 2011 | www.broadbandproperties.com | BROADBAND PROPERTIES | 123


other end without doing the market<br />

research to determine whether they can<br />

meet their take-rate targets. They usually<br />

don’t, and if a project gets only a 10<br />

percent or 15 percent take rate, it is almost<br />

certainly because it did not match<br />

demand with its buildout plans.<br />

An essential step is to organize the<br />

proposed service area into buildout<br />

footprints and assign a take-rate target<br />

for each footprint. Once this is done, a<br />

marketing effort is needed to obtain purchase<br />

commitments of some kind, such<br />

as take or pay, local tax bond guarantees,<br />

binding preservice purchase commitments<br />

or connection-fee commitments.<br />

No construction should be started<br />

in a footprint until the take-rate target<br />

commitments are reached. This approach<br />

ensures that, on day one of network<br />

operations, enough customers will<br />

buy services to cover capital costs and<br />

operational costs.<br />

Not enough marketing<br />

Overreliance on service providers to<br />

handle marketing is one of the most<br />

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community broaDbanD<br />

common mistakes in open-access networks.<br />

Community broadband efforts<br />

need well-run, ongoing marketing and<br />

public awareness campaigns. Projects<br />

that have trouble meeting financial targets<br />

almost all lack good marketing.<br />

The great advantage of open-access<br />

networks for service providers is that<br />

they need to make only small capital<br />

investments to offer services to customers<br />

on the network. However, this advantage<br />

can become a weakness; some<br />

providers, because they have invested<br />

little, spend little to attract customers.<br />

Instead, they are happy to pick up a few<br />

easy sales and then sit back and do little<br />

or nothing in the way of marketing.<br />

The network operator must ensure<br />

that residents and businesses are aware<br />

that the network exists, that they know<br />

what providers and services are available<br />

and that they know how to contact providers<br />

and order services. It may sound<br />

like Marketing 101, but some open-access<br />

networks are failing that class.<br />

124 | BROADBAND PROPERTIES | www.broadbandproperties.com | March/april 2011<br />

SuMMAry<br />

Community-owned broadband is not<br />

going to replace large telcos and cable<br />

companies; on the contrary, most openaccess<br />

networks want their local incumbent<br />

providers to use community infrastructure<br />

to market and deliver services<br />

such as telephone, TV and Internet.<br />

Arguing that communities should stay<br />

out of telecom amounts to saying, “Stick<br />

with 20th-century business models that<br />

have not always met broadband needs of<br />

communities in the United States.”<br />

True, some pioneer community<br />

broadband projects have had problems.<br />

However, the opponents of community<br />

broadband have nothing to offer except,<br />

“Stick with what we know has failed.” A<br />

better approach is “Let’s try some new<br />

models and learn what works.”<br />

Projects such as Burlington Telecom,<br />

even if they disappoint their own communities,<br />

are useful in the long run.<br />

They provide valuable best-practice information<br />

for all the community projects<br />

that come after them. BBP<br />

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The most recent RVA report<br />

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Most importantly, it offers<br />

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Service management SyStemS<br />

Building a Nationwide<br />

Open-access Network<br />

A Swedish network operator grows revenues and reduces operating<br />

expenses with an automated service management system.<br />

By Ronald Corriveau ■ COS Systems<br />

network operators need to design<br />

operations and management<br />

systems that are tailored<br />

to their particular networks and that<br />

meet the needs of their service providers<br />

and subscribers. This is the story of how<br />

Quadracom, a Swedish network operator,<br />

scaled its regional network to provide<br />

coverage in more than 40 cities and<br />

rural areas and added dozens of services<br />

and providers while reducing head count<br />

and improving customer satisfaction.<br />

The key to such cost-efficient growth is<br />

to develop a service-driven network.<br />

As an open-access network operator,<br />

Quadracom deploys next-generation<br />

services to its subscribers and its network<br />

of competitive service providers.<br />

It manages dozens of municipal FTTH<br />

networks all over Sweden, delivering<br />

secure access for service providers and<br />

subscribers.<br />

Although Quadracom is not a household<br />

brand in the communities it serves,<br />

many local, regional and national service<br />

providers offer branded services, such as<br />

Internet access, VoIP and IPTV, over the<br />

networks it manages.<br />

Quadracom’s network serves more<br />

than 40 municipalities, 110,000 residential<br />

customers and 1,000 business customers.<br />

Almost half its 22 service providers<br />

offer Internet access with speeds<br />

that range from 1 Mbps to 1 Gbps, with<br />

various support options and pricing<br />

plans. Several providers offer multiplay<br />

services with bundled discounts.<br />

As Quadracom grew, it faced the<br />

challenge of scaling its network without<br />

proportionally increasing its manage-<br />

ment costs. Staffing reductions became<br />

necessary to maintain profitability. To<br />

meet the needs of its ever-growing network,<br />

Quadracom invested in software<br />

to manage subscribers and providers.<br />

However, its early investments in management<br />

software did not achieve the<br />

cost reductions or operational efficiencies<br />

it required.<br />

126 | BROADBAND PROPERTIES | www.broadbandproperties.com | March/april 2011<br />

securely manage the network infrastructure,<br />

their services and their subscribers.<br />

In addition, the company wanted to offer<br />

a service marketplace where network<br />

subscribers could shop for and select the<br />

services they wanted and have them activated<br />

immediately. A subscriber using<br />

such a marketplace would not have to<br />

call a salesperson during business hours<br />

Service providers’ time to market is reduced<br />

from days to just minutes. They no longer have<br />

to request the network operator’s assistance to<br />

activate customers or manage services.<br />

Although Quadracom dramatically<br />

reduced its staffing requirements, it was<br />

still faced with high personnel costs and<br />

too many manual processes. Adding<br />

new services and service providers took<br />

way too much time and effort. To effectively<br />

grow its services, subscriber base<br />

and average revenue per user (ARPU),<br />

Quadracom undertook a more intensive<br />

automation initiative to enable its service<br />

providers to manage as much of the<br />

process as possible.<br />

Quadracom decided to implement a<br />

solution that would let service providers<br />

or wait for a technician for routine service<br />

activation, moves and changes.<br />

Jan Söderholm, the chief technical<br />

officer of Quadracom, realized he needed<br />

to implement more automation and selfservice<br />

capabilities in his operations. As<br />

Söderholm sums up the situation, “Our<br />

management software was a real mess<br />

and was just not able support our service<br />

providers and support our staff or customers<br />

the way we wanted it to.”<br />

Despite having already invested in<br />

management solutions, Söderholm realized<br />

that if the network he wanted to<br />

About the Author<br />

Ronald Corriveau is the vice president of business development at COS Systems. You<br />

can reach him at 617-274-8171 or by email at ron.corriveau@cossystems.com.


Service management SyStemS<br />

build was going to succeed, he needed<br />

a solution far more powerful than what<br />

he had. The solution would have to be<br />

Web-based, secure and capable of supporting<br />

greater automation in all key<br />

aspects of managing services, service<br />

providers and subscribers. The most important<br />

requirement was to be able to<br />

manage the software in Quadracom’s<br />

data centers throughout Sweden from a<br />

single location.<br />

With these needs in mind, Quadracom<br />

began to search for a solution that<br />

would meet all its needs today and provide<br />

a foundation that would support its<br />

future growth plans. It identified several<br />

important features. The solution would<br />

have to<br />

• allow service providers to manage<br />

and support their service activations,<br />

services and customers without assistance<br />

from Quadracom except for<br />

network outages<br />

• enable network subscribers to browse<br />

and order available services from any<br />

service provider on the network by<br />

using a simple Web portal tailored<br />

for each network being managed<br />

• provide an easy-to-use billing feature<br />

that would enable customers to enter<br />

billing information once and share<br />

it with service providers and billing<br />

parties on the network and that<br />

could support the many different<br />

billing models in place across all the<br />

networks under management<br />

• deliver 24/7 availability with faulttolerant<br />

and redundant capabilities<br />

to ensure that the service marketplace<br />

and management portals were<br />

continuously available for network<br />

subscribers, service providers and<br />

operations staff.<br />

After looking for proven products<br />

that could meet all its needs, Quadracom<br />

determined that COS System’s<br />

product, COS, offered all the capabilities<br />

it desired. Quadracom awarded<br />

COS Systems a contract to conduct a pilot<br />

deployment on its network to verify<br />

that the COS solution would in fact deliver<br />

all the capabilities it needed.<br />

The pilot project proved to Quadracom<br />

and its service providers that COS<br />

enabled them to manage everything<br />

they needed between their data centers<br />

and their subscribers. Quadracom’s<br />

service providers saw the benefits from<br />

COS immediately.<br />

Söderholm says, “Once our service<br />

providers saw we could totally automate<br />

the sale and instantly activate the<br />

services their subscribers ordered, they<br />

were hooked! It is the perfect solution<br />

for our needs and exactly what they<br />

had been asking for. We experienced an<br />

immediate reduction in the number of<br />

calls needed between the service provider,<br />

subscriber and our staff and cut<br />

the service delivery time from days to<br />

just a few minutes in most cases. Our<br />

service providers were happy because<br />

this accelerated their time to revenue.”<br />

Using the COS best practices deployment<br />

methodology implemented in the<br />

pilot project, COS Systems and Quadracom<br />

deployed COS management to<br />

the entire network in less than 90 days.<br />

Once the deployment was complete,<br />

service providers and subscribers had a<br />

secure and easy-to-use model to order<br />

and deliver network services. Accessing<br />

services using COS is as easy as 1, 2, 3:<br />

1 Go to an easy-to-use Web portal to<br />

shop for services, learn about service<br />

and provider options and make<br />

selections.<br />

2 Enter address and billing information<br />

once and have it securely delivered<br />

to service providers.<br />

3 Sit back, wait a few minutes and enjoy<br />

the new services.<br />

leSSOnS leArneD At<br />

quADrACOM<br />

Söderholm comments, “The only way we<br />

could profitably manage the Quadracom<br />

network was to slash our cost of operating<br />

our 22 municipal networks. By centralizing<br />

and consolidating all the operations<br />

into a single network operating center, we<br />

were able to cut staffing costs and implement<br />

a high degree of automation in our<br />

network. Our service providers could<br />

easily and securely manage their customers<br />

while we managed the network and<br />

service providers. COS enabled us to dramatically<br />

improve the economics of our<br />

network by lowering operational costs<br />

and increasing ARPU by offering more<br />

services at competitive prices.”<br />

He adds, “Implementing COS on<br />

our network gave us the ability to leverage<br />

automation, self-service provisioning<br />

of services from multiple providers<br />

and simplify billing to network subscribers.<br />

By lowering our management<br />

costs and improving ARPU, we were<br />

able to build a powerful, secure and easily<br />

managed network with competitive<br />

services and prices.”<br />

ServICe PrOvIDerS BeneFIt<br />

Service providers also realize benefits<br />

from doing business with larger networks<br />

where they have a larger customer base<br />

and where they can focus their marketing<br />

resources. Providing services on a regional<br />

or national network can dramatically<br />

reduce the marginal cost of service<br />

delivery, billing integration, customer<br />

acquisition and new service creation.<br />

One provider on the Quadracom<br />

network says, “COS makes it easy for<br />

us to offer our services by simplifying<br />

the integration of our service ordering,<br />

billing and operations systems onto the<br />

networks where we offer services. On<br />

networks that use COS, we can offer a<br />

new service in hours instead of weeks<br />

and achieve higher ARPU with lower<br />

management costs.”<br />

The provider adds, “New service orders<br />

arrive electronically and contain everything<br />

we need to enable services for<br />

customers. Their addresses and network<br />

services are added to the network outlets<br />

in their homes or businesses, along with<br />

the information we need to bill them,<br />

making it easy to integrate them into<br />

our order management, service management<br />

and billing systems. The level of<br />

effort required to offer services on networks<br />

managed by COS is helping us<br />

drive our growth strategy. We are eager<br />

to offer our services on COS-managed<br />

networks because they are easier to<br />

manage and more profitable.”<br />

Since deploying COS, Quadracom<br />

has accelerated its efforts to expand its<br />

customer base. Now that it can manage<br />

additional networks, it can benefit from<br />

the wider choice of services and providers<br />

that COS enables without increasing<br />

its operational staff. BBP<br />

March/april 2011 | www.broadbandproperties.com | BROADBAND PROPERTIES | 127


F i n a n c i a l a p p l i c at i o n s<br />

The Low-Latency<br />

Service Opportunity<br />

Financial trading firms, whose profits depend on entering trades<br />

ahead of competitors, lead the demand for low-latency network service.<br />

Other industries will follow them soon. Service providers need to<br />

prepare their networks to meet this demand.<br />

By Brian Quigley ■ ADVA Optical Networking<br />

In certain key markets, service<br />

providers are finding that latency<br />

– the length of time a<br />

packet of information takes to<br />

get from one point to another –<br />

is an increasingly important competitive<br />

differentiator. Even better, the differentiation<br />

is measurable, and customers<br />

in the relevant markets tend to be both<br />

sensitive to the value of the difference<br />

and willing to pay for it.<br />

Capitalizing on the low-latency<br />

opportunity, however, requires an approach<br />

to building optical infrastructure<br />

that is different from what service<br />

providers use to support traditional corporate<br />

networks. How can service providers<br />

segment the low-latency market<br />

and differentiate their offerings?<br />

How Low Can You Go?<br />

Deploying state-of-the-art network interface<br />

cards, high-capacity core network<br />

switches and multicore servers is<br />

not sufficient to satisfy certain industries’<br />

need for networking speed. The<br />

most delay-sensitive of applications,<br />

such as gaming, video, business continuity<br />

and, especially, electronic financial<br />

trading, need low latency as well.<br />

For innovative algorithmic-trading<br />

strategies, such as high-frequency trading,<br />

that have grown prevalent in segments<br />

of the financial industry, latency<br />

is absolutely critical. In algorithmic trading,<br />

automated buy and sell orders are<br />

driven by a computer model’s predefined<br />

set of rules for interpreting information<br />

feeds from around the world – share<br />

price and volume data from multiple exchanges,<br />

labor statistics from many markets,<br />

news reports and so forth.<br />

Since algorithmic and other forms<br />

of electronic trading took off in the late<br />

1990s, the competitive jockeying among<br />

firms has evolved. First, these firms<br />

tasked mathematicians with adjusting<br />

the computer models to better predict<br />

how markets might respond to various<br />

About the Author<br />

Brian Quigley is the senior director for strategic global account development at ADVA<br />

Optical Networking, a global provider of telecommunications equipment that specializes<br />

in carrier and enterprise Ethernet optical transport. He can be reached at<br />

bquigley@advaoptical.com.<br />

Winners and losers in electronic-trading<br />

races are separated by mere nanoseconds.<br />

This has made them hypersensitive to network<br />

latency and focused industry attention on<br />

connectivity between exchanges.<br />

128 | BROADBAND PROPERTIES | www.broadbandproperties.com | March/april 2011<br />

events. Next, they deployed more powerful<br />

servers and more powerful switches<br />

to connect the servers. The more quickly<br />

a firm can receive and parse incoming<br />

data and churn out orders, the better,<br />

because the first trade to market gets the<br />

best price.<br />

Today, after making these improvements,<br />

winners and losers in electronictrading<br />

races are separated by mere<br />

nanoseconds. This has made them hypersensitive<br />

to network latency and has,<br />

in turn, focused industry attention on<br />

connectivity between exchanges. The<br />

most meaningful competitive advantages<br />

in the ability to receive information<br />

and get orders to market now come<br />

from fiber optic transport links.<br />

For service providers, this trend has<br />

translated into an influx of requests for ultra-low-latency<br />

connections to and from<br />

trading venues, information sources, colocation<br />

facilities and international landing<br />

points for submarine cable. Proper<br />

segmenting, targeting and positioning<br />

are critical to standing out against the<br />

competition and winning business in the<br />

valuable electronic-trading space.


THe MarkeT for<br />

eLeCTroniC TradinG<br />

Two industry segments that are most enthusiastic<br />

about low-latency connection<br />

services are investment banks and proprietary<br />

trading firms. They are different<br />

types of businesses, but their needs for<br />

low-latency service offerings are similar.<br />

Investment banks primarily help<br />

corporations and governments raise capital.<br />

However, many of them provide additional<br />

services, such as market making<br />

and trading for various asset classes. Latency<br />

matters most to the departments<br />

in charge of these additional services.<br />

Proprietary trading firms tend<br />

to be much smaller than investment<br />

banks, and they trade with their own<br />

money rather than with their customers’<br />

money. They use a variety of trading<br />

strategies, such as statistical arbitrage,<br />

index arbitrage and volatility arbitrage<br />

and, in some cases, they make markets.<br />

These firms are very quick to make connectivity<br />

decisions and often change<br />

connectivity methods quickly as new<br />

latency innovations come to the market.<br />

A key trend impacting electronic<br />

trading is exchange fragmentation, particularly<br />

in Europe and Asia. As recently<br />

as 15 years ago, investment banks and<br />

trading firms might have focused on as<br />

few as two exchanges, the New York<br />

Stock Exchange and NASDAQ. Today,<br />

financial markets are fragmented among<br />

hundreds of trading venues globally, and<br />

a stock may be listed in many venues.<br />

This fragmentation is part of the reason<br />

investment banks and trading firms<br />

have invested so heavily in electronic<br />

trading and in their capabilities for exploiting<br />

arbitrage opportunities. The<br />

companies must optimize their connections<br />

and gain local strategic intelligence<br />

to enter their targeted markets fast and<br />

smart. To do this, they must first differentiate<br />

between the traffic to carry<br />

on their traditional, corporate networks<br />

and the traffic to carry on their trading<br />

networks.<br />

For carriers, the methods and best<br />

practices appropriate for designing<br />

general-purpose networks cannot simply<br />

be applied to trading networks or they<br />

will not achieve latencies low enough to<br />

succeed in electronic trading.<br />

F i n a n c i a l a p p l i c at i o n s<br />

Investment banks and trading firms are typically<br />

willing to pay large premiums for low-latency<br />

services because they have experienced the<br />

negative impact on their take rate of trades when<br />

networks are not optimized to deliver low latency.<br />

Financial firms grasp the necessity<br />

of this distinction very quickly because<br />

they have experienced the negative impact<br />

on their take rate of trades when<br />

the optical network infrastructures that<br />

underlie their electronic-trading processes<br />

are not optimized to deliver low<br />

latency. The good news for service providers<br />

that can convey the value of and<br />

deliver specialized low-latency services is<br />

that investment banks and trading firms<br />

are typically willing to pay large premiums<br />

for services that can meet their exacting<br />

needs.<br />

differenTiaTinG an offerinG<br />

Though dozens of microseconds (millionths<br />

of a second) in latency can be<br />

eliminated by properly optimizing any<br />

network, low latency is not a commodity<br />

service. Some manufacturers’ systems<br />

deliver a differentiating competitive<br />

advantage, and some do not – and innovation<br />

in the underlying technologies<br />

is ongoing and rapidly paced. The state<br />

of the art for low-latency connectivity<br />

along the Chicago-to-New York trading<br />

route, for example, has been shaved by<br />

multiple milliseconds (thousandths of a<br />

second) over the last year alone.<br />

The winning service providers in the<br />

electronic-trading market, whether they<br />

offer fully managed, dim/fractional<br />

wavelength or dark-fiber services, will be<br />

those that prepare their networks explicitly<br />

for the low-latency opportunity. The<br />

first step is to reduce the path from point<br />

A to point B, as shortening an exchangeto-exchange<br />

route by one physical mile<br />

of fiber equates to a five-microsecond<br />

improvement in round-trip latency.<br />

Going still further to achieve the<br />

game-changing, ultra-low latencies that<br />

investment banks and trading firms will<br />

pay most for requires revisiting preconceptions<br />

about optical networks and<br />

taking a deep dive into their key functions.<br />

<strong>Broadband</strong> providers might use<br />

the same fiber paths as their competitors,<br />

but, if they use time-division multiplexing<br />

(TDM) on the links, for example,<br />

they lose the low-latency customer.<br />

Relying on forward error correction to<br />

transmit optical signals across long distances<br />

is valuable for some applications,<br />

but it also feeds latency, as does deploying<br />

spools and spools of dispersioncompensating<br />

fiber (DCF).<br />

Many difference-making pockets of<br />

delay can be eliminated by reexamining<br />

the functions and techniques commonly<br />

used to transport customer traffic across<br />

glass networks.<br />

• Multiplexing – Combining lowerspeed<br />

traffic signals to a higherspeed<br />

network port using TDM entails<br />

processing that produces several<br />

microseconds of latency – enough<br />

to lose the low-latency game. The<br />

better approach is to carry signals<br />

on separate channels of light via<br />

wavelength-division multiplexing<br />

(WDM), creating dedicated paths<br />

for multiple types of traffic across the<br />

same fiber and yielding much lower<br />

latencies. Within the array of available<br />

WDM solutions, though, there<br />

are still major differences among<br />

manufacturers, and strategic choices<br />

need to be made. Systems that use<br />

thin-film filters, for example, inject<br />

unnecessary delay in varying increments,<br />

depending on the color of the<br />

wavelength carrying the traffic. As a<br />

result, carriers that use these systems<br />

not only have slower transmission<br />

but also must specify a different latency<br />

for each wavelength.<br />

• Color conversion – In a WDM<br />

system, the traffic for each customer<br />

is converted, or transponded, to a<br />

March/april 2011 | www.broadbandproperties.com | BROADBAND PROPERTIES | 129


F i n a n c i a l a p p l i c at i o n s<br />

Electronic trading is likely to bring heightened<br />

latency sensitivity to such mainstream applications<br />

as Internet gaming, video, and business<br />

continuity. Service providers should make sure<br />

they are well-positioned for these opportunities.<br />

particular color of light. Significant<br />

latency may be associated with this<br />

conversion. Emergent low-latency<br />

transponders carry out the process<br />

in single-digit nanoseconds. Again,<br />

there are major differences among<br />

technologies, and carriers must pay<br />

attention to transponder latency.<br />

• Amplification – Erbium-doped fiber<br />

amplifiers (EDFAs), which are<br />

frequently used to boost weakening<br />

optical signals along fiber routes, can<br />

be sources of delay. Some common<br />

architectures – high-gain, dual-stage<br />

EDFAs, for example – can inject<br />

microseconds of delay. On a longdistance<br />

route that links exchanges<br />

in two different cities, the performance<br />

impact is intolerable for electronic<br />

trading. Latency-optimized<br />

EDFAs perform amplification in<br />

half as much time, and counter and<br />

copropagating RAMAN amplifiers<br />

(used instead of EDFAs) have shown<br />

their ability to shrink amplification<br />

latency by a factor of 16.<br />

• Dispersion compensation – DCF is<br />

a commonly used tool for offsetting<br />

signal degradation that results from<br />

chromatic dispersion (the broadening<br />

of an input signal as it travels<br />

down a length of fiber). High-speed<br />

signals, such as 10 Gbps, tend especially<br />

to smear across the spectrum<br />

of wavelengths as they travel over<br />

long distances in a strand of optical<br />

fiber. Augmenting networks with kilometers<br />

of DCF counters the effect,<br />

but it also produces latency that electronic<br />

traders cannot afford. <strong>Fiber</strong><br />

Bragg gratings can be used to offset<br />

chromatic dispersion without introducing<br />

the delays DCF causes.<br />

• Regeneration – Optical signals require<br />

regeneration in addition to<br />

amplification if they are to maintain<br />

130 | BROADBAND PROPERTIES | www.broadbandproperties.com | March/april 2011<br />

their performance over longer connections.<br />

As with the other functions,<br />

traditional techniques are not suitable<br />

for low-latency applications. Optimized<br />

technology, however, slashes<br />

regeneration delay from hundreds of<br />

microseconds to mere nanoseconds.<br />

ConCLusion<br />

Financial firms will continue to tweak<br />

their algorithms and back-office systems<br />

to more quickly detect and act on anomalies<br />

across markets, and these tweaks<br />

will continue to deliver gains. However,<br />

their systems have been optimized to<br />

such a level that such adjustments might<br />

yield latency gains of only fractions of<br />

a microsecond. By paying attention to<br />

exchange-to-exchange connectivity, service<br />

providers can not only help their<br />

trading-firm customers become winners<br />

in the low-latency financial markets but<br />

also remove themselves from the commodity-based<br />

transport game.<br />

Financial customers are seeking partners<br />

with the global presence and experience<br />

(understanding of local integration<br />

and fiber-route information, for example)<br />

to allow them to start trading anywhere<br />

business takes them. Having already<br />

invested in making improvements<br />

everywhere else across the ecosystems<br />

of equipment and processes underlying<br />

electronic trading, these companies are<br />

seeking providers whose networks have<br />

been optimized for the task.<br />

What’s more, electronic trading is<br />

likely to be the catalyst for bringing<br />

heightened latency sensitivity to more<br />

mainstream applications, such as Internet<br />

gaming, video, and business continuity.<br />

It’s important that service providers<br />

learn the low-latency market terrain<br />

today if they are to find themselves well-<br />

positioned for tomorrow’s additional opportunities.


Ad Index Calendar<br />

ADvertISer PAGe WeBSIte June<br />

3M 27, 105 www.3M<br />

Telecommunications.com<br />

Adtran 15, 28 www.adtran.com<br />

Advanced MediaTechnologies 28, 37 www.amt.com<br />

AFLTelecommunications 28, 101 www.afltele.com<br />

AT&T Connected Communities 29, C-4 www.att.com/communities<br />

ATX Networks 29 www.atxnetworks.com<br />

<strong>Broadband</strong> <strong>Properties</strong> 2-3, 38, 109 www.bbpmag.com<br />

BlonderTongue 30 www.blondertongue.com<br />

Calix 30 www.calix.com<br />

Channell Corp. 9, 30 www.channell.com<br />

Charles Industries 31, 130 www.charlesindustries.com<br />

Clearfield, Inc. 1, 31 www.clearfieldconnection.com<br />

Comcast 31, 91 www.comcast.com<br />

ConnexionTechnologies 24, 25, 31 www.cnxtech.com<br />

Corning Cable Systems 32, C-3 www.corning.com/cablesystems<br />

COS Systems 13, 32 www.cossystems.com<br />

Dish Network 32, 39 www.dishnetwork.com<br />

Display Systems, Int’l 33 www.displaysystemsintl.com<br />

G4STechnology (formerly Adesta) 5, 33 www.G4STechnology.com<br />

Great Lakes Data Systems 29 www.glds.com<br />

Human Productivity Lab 131 www.humanproductivitylab.com<br />

Information Data Products / Data Connect Ent. 43 www.idpc.com<br />

Mac Gray 33, 124 www.macgray.com<br />

Multicom, Inc. 34, 113 www.multicominc.com<br />

OFS 34, 121 www.ofsoptics.com<br />

Radiant Communications 11, 35 www.rccfiber.com<br />

RVA, LLC 125 www.RLALLC.com<br />

Spot On Networks 35 www.spotonnetworks.com<br />

Successful.com 117 www.successful.com<br />

Sumitomo Electric Lightwave 35 www.sumitomoelectric.com<br />

Suttle 36, 47 www.suttleonline.com<br />

Team Fenex 33 www.teamfenex.com<br />

Televes USA 36 www.televes.com<br />

TimeWarner Cable 7, 36 www.timewarnercable.com<br />

Verizon Enhanced Communities 37, C-2 www.verizon.com/communities<br />

ViewTEQ 37, 95 www.viewteq.com<br />

Walker & Associates 38, 87 www.walkerfirst.com<br />

132 | BROADBAND PROPERTIES | www.broadbandproperties.com | March/april 2011<br />

1 – 3<br />

Intelligent Community Forum<br />

Building the <strong>Broadband</strong> Economy<br />

Polytechnic Institute of NewYork University<br />

NewYork, NY<br />

646-291-6166<br />

www.intelligentcommunity.org<br />

23 – 25<br />

NAA Education Conference & Expo<br />

Mandalay Bay Resort & Casino<br />

LasVegas, NV<br />

703-518-6141<br />

www.naahq.org<br />

SePteMBer<br />

18 – 22<br />

BICSI Fall Conference & Exhibition<br />

MGM Grand Hotel & Convention Center<br />

LasVegas, NV<br />

813-979-1991<br />

www.bicsi.org<br />

26 – 30<br />

FTTH Conference & Expo<br />

Walt DisneyWorld Swan & Dolphin Hotel<br />

Orlando, FL<br />

613-226-9988<br />

www.ftthconference.com<br />

nOveMBer<br />

7 – 9<br />

NMHC Apartment Operations &<br />

Technology Conference & Exposition<br />

Hilton Anatole<br />

Dallas,TX<br />

202-974-2300<br />

www.nmhc.org<br />

APrIl 2012<br />

24 – 26<br />

<strong>Broadband</strong> <strong>Properties</strong> Summit<br />

InterContinental Hotel – Dallas<br />

Addison,Texas<br />

877-588-1649<br />

www.bbpmag.com


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AT&T logo are trademarks of AT&T Intellectual Property.

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