Fiber - Broadband Properties
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Fiber - Broadband Properties
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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 />
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Andy Betscher, field operations specialist at Cincinnati<br />
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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 />
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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 />
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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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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 />
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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
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(Assemble, Wire, Test)<br />
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(“EDI”)<br />
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and Outside Sales Teams<br />
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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 />
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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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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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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 />
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Calix 30 www.calix.com<br />
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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 />
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703-518-6141<br />
www.naahq.org<br />
SePteMBer<br />
18 – 22<br />
BICSI Fall Conference & Exhibition<br />
MGM Grand Hotel & Convention Center<br />
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813-979-1991<br />
www.bicsi.org<br />
26 – 30<br />
FTTH Conference & Expo<br />
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613-226-9988<br />
www.ftthconference.com<br />
nOveMBer<br />
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NMHC Apartment Operations &<br />
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Hilton Anatole<br />
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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 />
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877-588-1649<br />
www.bbpmag.com
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