2010 Buyers Guide - Broadband Properties
2010 Buyers Guide - Broadband Properties
2010 Buyers Guide - Broadband Properties
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Get<br />
Check Out<br />
Foldout Section<br />
In Center Spread<br />
For Latest Summit Info<br />
Connected<br />
at the Summ it<br />
April 26 - 28<br />
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Toward a Fiber-Connected World
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©2009 Verizon. All rights reserved.<br />
Official Corporate Host of the<br />
<strong>2010</strong> <strong>Broadband</strong> <strong>Properties</strong> Summit
3 big U.S. fiber opportunities<br />
250,000 cell sites<br />
5,000,000 MDUs<br />
5,000,000 SMBs<br />
Claim your share with<br />
3 new Calix ONT solutions<br />
766GX<br />
763GX<br />
765G-R<br />
Enabling 4G evolution<br />
(8 T1, 4 GE, 8 POTS, rack- & wallmounted<br />
options, -48V & 24V)<br />
Advanced video for MDUs<br />
(8 RF video ports with integrated<br />
RFOG, 8 GE, 8 POTS)<br />
Rack-mounted for easy<br />
SMB deployment<br />
(4 T1, 4 GE, 8 POTS)<br />
Delivering on the<br />
promise of fiber access
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-<br />
050) (Publication Mail Agreement #1271091) is published<br />
9 times a year at a rate of $24 per year by <strong>Broadband</strong><br />
<strong>Properties</strong> LLC, 1909 Avenue G, Rosenberg, TX 77471.<br />
Periodical postage paid at Rosenberg, TX, and additional<br />
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. Copyright ©2005 <strong>Broadband</strong><br />
<strong>Properties</strong> LLC. All rights reserved.<br />
Editor’s Note<br />
What Will A<br />
Next-Generation<br />
Network Cost?<br />
Could a nationwide fiber buildout really cost<br />
$350 billion, as the FCC said? Not likely.<br />
In September, Federal Communications<br />
Commission staff presented an<br />
interim report on the National <strong>Broadband</strong><br />
Plan, which is due out in February.<br />
Of the 168 slides in the report, a single<br />
number was widely publicized: $350 billion<br />
to provide 100 Mbps connections for<br />
everyone in the United States.<br />
The steep price, many people said,<br />
eliminated fiber to the home as a national<br />
broadband strategy and 100 Mbps connectivity<br />
as a national goal. One publication<br />
called the number “jaw-dropping.”<br />
Our jaws dropped, too, but not because<br />
we thought fiber was unaffordable.<br />
A year ago, in an open letter to the<br />
incoming administration, <strong>Broadband</strong><br />
<strong>Properties</strong> estimated the cost of a nationwide<br />
fiber buildout at $150 billion. We<br />
see no reason to revise that estimate.<br />
David Russell, solutions marketing<br />
director at Calix (www.calix.com) and<br />
incoming chairman of the Fiber-tothe-Home<br />
Council, recently traveled to<br />
Washington to give the FCC more realistic<br />
numbers on which to base policy.<br />
Essentially, the FCC had assumed that<br />
everyone in the United States lives in a<br />
rural area. In fact, Russell pointed out,<br />
more than three-quarters of unfibered<br />
households are in densely populated areas<br />
where they can be reached by fiber at<br />
relatively low cost.<br />
To construct a better estimate, Russell<br />
used an FTTH cost model developed by<br />
the consulting firm CSMG (www.csmgglobal.com),<br />
which he extended to lowerdensity<br />
areas. He eliminated 2.6 million<br />
households in areas with five or fewer<br />
housing units per square mile as being<br />
unsuitable for FTTH. For the remaining<br />
108.4 million unfibered households,<br />
he estimated a total of $206 billion, or<br />
a little less than $2,000 per household.<br />
This averages $1,350 per urban and suburban<br />
household (Verizon’s costs) with<br />
rural per-household costs of $3,840.<br />
Russell’s numbers are far more realistic<br />
than the FCC’s. However, in trying to err<br />
on the side of caution, Russell made several<br />
assumptions that may have boosted<br />
his cost estimate. First, he assumed Verizon’s<br />
costs would be applicable to other<br />
urban and suburban areas. But Verizon is<br />
replacing long copper loops; millions of<br />
homes are now very close to fiber and can<br />
be connected at lower cost.<br />
Second, some households will not<br />
subscribe to fiber-based services even if<br />
they are available, so we can subtract the<br />
cost of connecting these nonsubscribing<br />
homes (even if we include the cost<br />
of passing all homes). Finally, $3,840 per<br />
household in rural areas assumes an average<br />
density of six homes per mile – but<br />
six hpm is actually the minimum density,<br />
once we exclude areas unsuited to fiber.<br />
That’s why BBP is sticking to its $150 billion<br />
estimate.<br />
Even more important, the $150 billion<br />
(or $200 billion or $350 billion) isn’t<br />
all public investment. The vast majority<br />
can be private. Although public subsidies<br />
and other incentives are needed in<br />
some areas, the drain on the public purse<br />
shouldn’t be large.<br />
By publicizing the $350 billion estimate,<br />
the FCC has made universal fiber<br />
broadband appear out of reach, potentially<br />
setting back the goal of building<br />
a next-generation infrastructure in the<br />
United States.<br />
Masha@broadbandproperties.com<br />
2 | BROADBAND PROPERTIES | www.broadbandproperties.com | November/December 2009
Everyone benefits when you’re wired for DIRECTV.<br />
Whether you’re a property owner or a tenant, find out why<br />
over 50 million Americans enjoy DIRECTV every day!<br />
Why OWNERS want DIRECTV<br />
>> Single Dish Solution: All tenants<br />
can access DIRECTV programming via<br />
a centralized dish system<br />
>> Customizable Programming Options:<br />
Select programming that meets the<br />
needs of your property, including<br />
bulk options<br />
>> Local Service Network: Tenants<br />
get fast and free installation and quick<br />
customer service from our knowledgeable<br />
local dealer network<br />
>> The Highest Customer Satisfaction<br />
Ratings: DIRECTV has had higher<br />
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Why TENANTS want DIRECTV<br />
>> No Contract Required: Switching<br />
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>> Nobody offers more HD than DIRECTV:<br />
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>> No Dish Required:<br />
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>> Exclusive Programming: Exclusive<br />
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DIRECTV is proud to be one of <strong>Broadband</strong> <strong>Properties</strong> Top 100 Companies to do business with for 2009.^<br />
For more information on why your building should have DIRECTV, call 888-342-7288.<br />
*Among the largest national cable & satellite TV providers. 2009 American Customer Satisfaction Index, University of Michigan Business School. † To access DIRECTV HD programming, customer must reside in a<br />
MFH2 or MFH3 capable property. Plus, an HD Access fee ($10/mo.), HD Receiver (H20, HR20 or greater), HD television equipment, and a qualifying programming package are required. Number of HD channels<br />
varies by package. †† “Dolby” and the double-D symbol are trademarks of Dolby Laboratories. ^Based on <strong>Broadband</strong> <strong>Properties</strong> Top 100 Companies list 2009. INSTALLATION: Standard professional installation only. Custom<br />
installation extra. SYSTEM LEASE: Purchase of 24 consecutive months (for standard and advanced receivers) of any DIRECTV programming package ($29.99/mo. or above) or qualifying international service bundle<br />
required. FAILURE TO ACTIVATE ALL OF THE DIRECTV SYSTEM EQUIPMENT IN ACCORDANCE WITH THE MULTI-DWELLING UNIT PROGRAMMING AGREEMENT AND EQUIPMENT LEASE ADDENDUM MAY RESULT IN A<br />
CHARGE OF $150 PER RECEIVER NOT ACTIVATED. IF YOU FAIL TO MAINTAIN YOUR PROGRAMMING, DIRECTV MAY CHARGE A PRORATED FEE OF UP TO $480. RECEIVERS ARE AT ALL TIMES PROPERTY OF DIRECTV AND<br />
MUST BE RETURNED UPON CANCELLATION OF SERVICE, OR ADDITIONAL FEES APPLY. CALL 1-800-DIRECTV FOR DETAILS OR YOUR AUTHORIZED MDU DEALER. Programming, pricing, terms and conditions subject<br />
to change at any time. Pricing residential. Taxes not included. Receipt of DIRECTV programming subject to DIRECTV Customer Agreement; copy provided at directv.com/legal and in first bill. ©2009 DIRECTV, Inc.<br />
DIRECTV and the Cyclone Design logo are registered trademarks of DIRECTV, Inc. All other trademarks and service marks are the property of their respective owners.
Table of Contents<br />
DEPARTMENTS<br />
Editor’s Note . . . . . . . . . . . . . . . . . . . . . . . . . . . 2<br />
The Bandwidth Hawk . . . . . . . . . . . . . . . . . . . . . 6<br />
BBP Marketplace . . . . . . . . . . . . . . . . . . . . . . . .80<br />
Advertiser Index . . . . . . . . . . . . . . . . . . . . . . . .84<br />
Calendar . . . . . . . . . . . . . . . . . . . . . . . . . . . . .84<br />
Technology<br />
<strong>2010</strong> <strong>Buyers</strong> <strong>Guide</strong> to <strong>Broadband</strong> Technology | 32<br />
Companies supplying the products and services needed to build<br />
ultra-broadband networks and deliver advanced services.<br />
Special Report: <strong>Broadband</strong><br />
and Economic Development<br />
<strong>Broadband</strong> Is Good …<br />
But International Mileage May Vary | 54<br />
By Steven S. Ross ■ <strong>Broadband</strong> <strong>Properties</strong><br />
Professors, regulators and telecom executives discuss broadband<br />
policy at Columbia University. Applying the lessons of one country<br />
to others is difficult, they agree.<br />
In a Remote County,<br />
FTTH Is a Lifeline to the World | 62<br />
By Masha Zager ■ <strong>Broadband</strong> <strong>Properties</strong><br />
Cook County, Minn., is becoming increasingly isolated. A proposed<br />
countywide fiber-to-the-home network promises to make<br />
the county again a good place to live and work.<br />
The Impact of Genuine<br />
<strong>Broadband</strong> on Australia | 64<br />
By Centre for International Economics<br />
The ambitious nationwide fiber network project in Australia could<br />
give that country’s economy a significant boost, says a new study.<br />
<strong>Broadband</strong> and the Economy:<br />
The Big Picture – In Short | 67<br />
A roundup of recent findings about broadband and economic conditions<br />
worldwide.<br />
Texas Cooperative Spurs Economic Growth | 71<br />
By Steven S. Ross ■ <strong>Broadband</strong> <strong>Properties</strong><br />
GVTC, Texas’ largest cooperative, helps foster growth in the San<br />
Antonio area with true business-quality broadband.<br />
Opinion<br />
To Make Business-Class <strong>Broadband</strong><br />
More Affordable, Open the Networks | 76<br />
By Anthony Hansel ■ Covad Communications Company<br />
What the nation’s largest competitive carrier told the FCC about<br />
promoting business growth through broadband.<br />
<strong>Broadband</strong> Apps<br />
New Sources of Revenue For Service Providers | 78<br />
By Masha Zager ■ <strong>Broadband</strong> <strong>Properties</strong><br />
What’s beyond the triple play? Here are two new directions: selling<br />
tech support to customers and and selling IPTV “in the cloud” to<br />
other providers.<br />
IN THIS ISSUE<br />
Provider Perspective<br />
Do You Use Market Segmentation? Bravo! | 8<br />
By Bryan J. Rader ■ Bandwidth Consulting LLC<br />
Knowing what the Speedsters, Sports Fans, Slowskys and other<br />
market segments are looking for will help you devise the right service<br />
bundle for each group.<br />
Owners Corner<br />
Assessing the Value of a<br />
Marketing Agreement | 10<br />
By Henry Pye ■ RealPage and Mark Bershenyi ■ Archstone<br />
Marketing agreements incur costs as well as revenues for property<br />
owners. To evaluate an agreement, examine both sides of the ledger<br />
with equal care.<br />
Metrics<br />
Standardizing Infrastructure Design | 12<br />
By David Daugherty ■ Korcett Holdings<br />
To deliver consistent Internet service across multiple properties,<br />
owners must standardize their infrastructure. The process starts<br />
with procurement.<br />
Why We Need More Fiber<br />
Telework Day Generates Savings in Virginia | 14<br />
Thousands of employees stayed home to work for a day. They saved<br />
time, money and gasoline – and got more work done. The number<br />
one requirement for teleworkers is great connectivity.<br />
Fiber Deployment Roundup<br />
One Size Doesn’t Fit All | 16<br />
By Masha Zager ■ <strong>Broadband</strong> <strong>Properties</strong><br />
Fiber-to-the-home deployers have many new options for configuring<br />
networks – and that means more and better business cases for fiber.<br />
– Digital edition bonus section: International Deployments –<br />
Municipal FTTH Deployment Snapshot<br />
LENOWISCO Planning District Commission<br />
and Sunset Digital Communications | 26<br />
Not long ago, Southwest Virginia was tobacco country. Today, it’s<br />
home to a growing knowledge industry. What made the difference:<br />
municipal fiber.<br />
Property of the Month<br />
The Residences at Oella Mill, Md. | 28<br />
By Joe Bousquin ■ Contributing Editor,<br />
<strong>Broadband</strong> <strong>Properties</strong><br />
A 200-year-old textile mill gets a new life as an upscale, fiber-wired<br />
condo – and helps to revive an economically depressed town.<br />
FTTH Conference Coverage<br />
Highlights of the Houston FTTH Conference | 48<br />
A BBP Staff Report<br />
The broadband stimulus program and fiber to the home; telemedicine’s<br />
vast potential; how providers successfully deploy fiber.<br />
BUT WAIT…THERE’S MORE!<br />
The Digital Edition of <strong>Broadband</strong> <strong>Properties</strong> now includes free onlineonly<br />
bonus material. International news, extra photographs and<br />
other features are now available to supplement the print edition. Visit<br />
www.bbpmag.com/bbponline.php to see this month’s Digital Issue.<br />
4 | BROADBAND PROPERTIES | www.broadbandproperties.com | November/December 2009
Choosing the right<br />
teChnology Can be the<br />
hardest part of your job.<br />
thankfully, it Can be<br />
the least of your worries.<br />
The service provider industry is always changing.<br />
At any given time there are countless applications<br />
emerging, all claiming to revolutionize the way<br />
you do business. But do you really have the time<br />
to investigate each one? How do you upgrade<br />
your copper or fiber network to Triple Play,<br />
without starting over? Shouldn’t you be able to<br />
focus on managing your own business instead?<br />
That’s why we’re here. We research all promising<br />
technologies and offer objective advice based<br />
on actual experience. We work with the best<br />
suppliers to stay on top of the latest applications.<br />
We provide scalable solutions because<br />
you need options to satisfy your customers’<br />
diverse needs. For decades, our nationwide<br />
distribution network has been here to help service<br />
providers build their businesses. Now, we’re ready<br />
to help you build yours.<br />
for triple play osp solutions and to request adC’s new publication, The Book on FTTX, visit graybar.com/adC
1101010010_THE_BANDWIDTH_HAWK_0101101011<br />
Yes, Ultra-Bandwidth<br />
Helps the Economy!<br />
No economic model can prove (yet) that more bandwidth provides more<br />
economic benefit. But common sense can.<br />
By Steven S. Ross ■ <strong>Broadband</strong> <strong>Properties</strong><br />
This year’s annual economic development<br />
issue coincides with the<br />
Federal Communications Commission’s<br />
effort to justify a greater government<br />
role in bringing broadband to<br />
more Americans – and teaching Americans<br />
to use it. The National <strong>Broadband</strong><br />
Plan, required by last February’s stimulus<br />
law, is due in February <strong>2010</strong>.<br />
Government must weigh costs<br />
against benefits as best it can and measure<br />
those costs and benefits against<br />
other pressing uses for scarce resources.<br />
Would you prefer broadband or better<br />
health care?<br />
Ultra-bandwidth advocates, including<br />
me, assume there is little need for<br />
detail about costs, benefits and competing<br />
uses for bandwidth because the economic<br />
payback for broadband in productivity,<br />
new jobs and creation of entirely<br />
new industries is immediate. That is, the<br />
pie gets bigger no matter how you slice<br />
it. Money makes money.<br />
Besides, other countries are already<br />
investing in broadband (as documented<br />
in my report in this issue on a recent<br />
conference at Columbia University).<br />
Said FCC chief Julius Genachowski at<br />
the FCC’s monthly meeting in November:<br />
“This focus on broadband is a reflection<br />
of a recognition that the U.S. is<br />
lagging behind.”<br />
By saying great detail is not needed,<br />
I do not call for abandoning common<br />
sense. At the Columbia conference,<br />
policymakers worried that although<br />
we know bandwidth is good, we do not<br />
know for sure that a lot of bandwidth is<br />
better. That’s because fiber to the home<br />
About the Author<br />
Write to the Hawk at steve@broadbandproperties.com.<br />
has not been around long enough to<br />
show a clear effect at the national level,<br />
even though plenty of examples suggest<br />
that FTTH attracts businesses locally.<br />
But there’s better proof. Look what<br />
happened in the last month alone:<br />
• Cloud computing for the masses.<br />
Google released the source code for<br />
its Chrome OS. Instead of the operating<br />
system’s having a browser, the<br />
browser in Chrome OS is the operating<br />
system. Most user data and<br />
applications are encrypted and accessed<br />
online. User devices depend<br />
on networks for maximum utility,<br />
even though they can operate off the<br />
network – the small Linux-based OS<br />
reinstalls on the user device at the<br />
first hint of malware, too.<br />
• More smart phones. Android, another<br />
Linux-derived, open-source<br />
Google product, has migrated from<br />
a few phones available on the T-Mobile<br />
network to Verizon and other<br />
carriers. Smart phones put enormous<br />
bandwidth demands on wireless<br />
systems; thanks to the iPhone,<br />
AT&T reports its data transmission<br />
volume has increased 50-fold in just<br />
two years.<br />
• Comcast’s video acquisitions. The<br />
cable provider moved to acquire content<br />
from what were once broadcastoriented<br />
networks, signaling a new<br />
business model: Comcast is preparing<br />
to move much of its content to<br />
the Web, for a price.<br />
Technical barriers still exist. Developers<br />
for Android, for instance, complain<br />
that the smart phones to which<br />
they must tailor their apps vary in processor<br />
speed, network speed, screen size<br />
and color depth. Lightweight, cheap<br />
(they’re talking $50) “smartbook” laptops<br />
will add to the confusion. But I<br />
usually travel with a pre-netbook Fujitsu<br />
U810 laptop/tablet with a 1024 x 600,<br />
6-inch screen and full (but tiny) keyboard.<br />
I use it to take notes (it reads my<br />
handwriting better than I can) and as a<br />
phone (Skype, Vonage Softphone and<br />
Google Talk).<br />
Because its Vista OS takes seven<br />
minutes to boot and four minutes to<br />
shut down, and spends an enormous<br />
amount of time updating itself, even a<br />
limited Chrome OS would be a blessing.<br />
I get the Wall Street Journal on paper,<br />
but because I travel so much, I find myself<br />
doing fully half my WSJ reading on<br />
my year-old Android phone.<br />
All this certainly improves my productivity.<br />
I can edit images, and even video,<br />
on the U810, and I can edit Microsoft<br />
Office files on my phone. Yes, I have an<br />
8.9-inch machine as well, and I crave an<br />
even bigger screen in a lighter package.<br />
In short, I want what only a ubiquitous,<br />
speedy network can give – and the more,<br />
the better. Don’t we all? BBP<br />
6 | BROADBAND PROPERTIES | www.broadbandproperties.com | November/December 2009
Provider Perspective<br />
Do You Use Market<br />
Segmentation? Bravo!<br />
Bravo became an overnight success by catering to several highly specific<br />
market segments. Private cable operators can follow the same approach.<br />
By Bryan Rader ■ Bandwidth Consulting LLC<br />
Not long ago, Bravo was a sleepy<br />
channel at the bottom of the<br />
cable lineup. Today, it is a “gotta<br />
have” network across the United States.<br />
How did it leap ahead of competitors<br />
to go from a back-burner channel to a<br />
front-runner? Its success is due to its new<br />
president, Lauren Zalaznick, who took<br />
over the channel in 2004.<br />
Zalaznick divided her core audience<br />
into five segments. As she explained to<br />
SUCCESS magazine, “We put behavioral<br />
modeling around these segments;<br />
we thought about what they’d like to<br />
see, what they like to watch, what they<br />
do every day.”<br />
By segmenting the audience, Bravo<br />
created such hits as “Real Housewives,”<br />
“Top Chef,” “Millionaire Matchmaker”<br />
and “Flipping Out.” I know I’m not in<br />
any of Zalaznick’s market segments, as I<br />
haven’t seen these shows! But you have<br />
to love her ratings success. Segmenting<br />
helped create hit shows to attract each<br />
audience. The same concept that worked<br />
for Bravo will certainly work for us.<br />
Market segmentation is not a new<br />
concept, but it may be important for private<br />
cable operators (PCOs) as we plan<br />
for next year. Lately I hear a lot of talk<br />
about one market segment. People are<br />
frantic about customers who have cut<br />
the cable cord, joined Netflix, bought<br />
iPhones and do everything online. Their<br />
entertainment is no longer centered on<br />
the TV. It’s all about the Internet, and<br />
that makes some people nervous.<br />
But wait. This techno-savvy customer<br />
does not represent every apartment<br />
resident we serve. Not everyone has<br />
dumped his or her TV for the Internet.<br />
This group is only one market segment,<br />
and operators should be aware of that.<br />
What about everyone else? I’ll try<br />
to identify our customer types, and I<br />
encourage you to do this exercise with<br />
your management team. It will help<br />
your <strong>2010</strong> planning.<br />
Speedsters are the market segment<br />
transitioning to broadband only.<br />
They are younger residents – twentysomethings,<br />
college students, singles<br />
with roommates, gamers and others.<br />
They may no longer sign up for cable,<br />
partly to save money, but they will pay<br />
for top-shelf speed and quality of service<br />
(QoS). We can customize a plan for<br />
them around speed (maybe including<br />
burstable speeds) and reliability.<br />
The next group is Costco users, who<br />
buy products in large quantities to capture<br />
big discounts. They will buy video,<br />
voice and data, but they expect big savings<br />
for being good customers.<br />
These folks load up on paper towels<br />
and bottled water and take coupons<br />
with them to restaurants. They offer a<br />
great opportunity to sell a lot of services<br />
in a “volume discount” way. Marketing<br />
to Costco users should focus on convenience,<br />
promotional savings and highquality<br />
technical support. They can be<br />
extremely loyal.<br />
Sports Fans make up another segment.<br />
This market segment is huge in<br />
MDUs. These guys own the biggest<br />
HDTV sets and are generally unavailable<br />
on Sunday afternoons during football<br />
season. Their buying decisions are<br />
driven by sports programming and HD<br />
quality. Do we carry the NFL Network?<br />
Do we offer all the hockey games<br />
on Versus? What about pay-per-view<br />
events? These guys want it all and will<br />
pay for it.<br />
A key segment is International.<br />
Lumping all nationalities into one category<br />
may be problematic, but they do<br />
share common demands and needs: international<br />
calling plans; international<br />
channels such Fox Soccer, TV Asia<br />
and Univision; and patient, bilingual<br />
customer reps for sign-up and support.<br />
They provide great word-of-mouth, too.<br />
Finally, there are Slowskys – the<br />
people who say, “I just want it to work.”<br />
Simple, straightforward, not too many<br />
remote controls. Many of these folks prefer<br />
a good analog lineup with a reasonable<br />
broadband speed. In some MDUs,<br />
this can be a very large segment. We<br />
should package services just for them.<br />
Segment your market and build packages<br />
that suit each segment. It worked<br />
for Bravo; it will work for us. 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.<br />
8 | BROADBAND PROPERTIES | www.broadbandproperties.com | November/December 2009
Owners Corner<br />
Assessing the Value of<br />
Marketing Agreements<br />
When you evaluate a new marketing agreement for telecom services,<br />
remember to consider costs and liabilities as well as revenues.<br />
By Henry Pye ■ RealPage and Mark Bershenyi ■ Archstone<br />
When owners enter into marketing<br />
agreements for voice, video<br />
or high-speed Internet, they<br />
tend to focus on the upfront payments<br />
and ongoing revenue shares or commissions<br />
that providers offer. Until recently,<br />
the costs related to owner responsibilities<br />
were minor.<br />
Today, however, failing to consider<br />
these costs is a serious oversight. Owners<br />
must not overlook the costs associated<br />
with contractual obligations, particularly<br />
wiring responsibilities and the<br />
value of complimentary and discounted<br />
services in the office and amenity areas.<br />
In the last issue, we discussed the<br />
quality of coaxial cabling in multifamily<br />
communities and quoted an estimate by<br />
Mike Kolb of Connexion Technologies<br />
that the cost of rewiring coax ranged<br />
from $225 per unit when all units are<br />
rewired at once to more than $350 for<br />
an individual unit.<br />
The cost of rewiring twisted copper<br />
is similar. Historically, service providers<br />
didn’t expect twisted copper infrastructure<br />
to do much more than carry<br />
voice traffic. However, AT&T’s U-verse<br />
and other DSL-based services, as well as<br />
FiOS and certain direct broadcast satellite<br />
systems, demand more than most<br />
multifamily twisted copper wiring can<br />
support without significant effort.<br />
To cap their expenses, many providers<br />
now place owner wiring specifications<br />
in new marketing agreements. In most<br />
cases, they specify Category 5e twisted<br />
copper and Series 6 coaxial cables, which<br />
existing communities are unlikely to<br />
have. The cost of meeting these wiring<br />
specifications may exceed the revenues<br />
from any new marketing agreement.<br />
Providers may shift wiring responsibility<br />
to owners by inserting language<br />
into agreements that limits or relieves<br />
the provider’s ongoing responsibility.<br />
More often, agreements require owners<br />
to provide wiring suitable not only for<br />
current services but also for undefined<br />
future products and services. Unless<br />
owners catch and challenge these provisions,<br />
they may be contractually obliged<br />
to rewire entire communities.<br />
Given these potential liabilities,<br />
an owner negotiating a new marketing<br />
agreement must determine how the<br />
community is wired, who will be responsible<br />
for maintaining and upgrading the<br />
wiring and how much maintenance and<br />
upgrades will cost.<br />
Free Service Has a Cost<br />
The number, scale and cost of complimentary<br />
and discounted amenityarea<br />
and office services have also risen<br />
steadily. Many new communities have<br />
more than a dozen high-definition televisions<br />
in their amenity areas, along with<br />
complimentary wired and wireless highspeed<br />
Internet access. Good broadband<br />
connections are standard for any leasing<br />
office and the average community uses<br />
more than a dozen phone lines. As these<br />
services increase, so does cost.<br />
Although expanded-basic or other<br />
analog tiers were once sufficient for most<br />
amenity areas, cable companies’ transition<br />
from analog to digital, as well as<br />
new digital-only telco and satellite services,<br />
are making set-top boxes essential<br />
for amenity-area TV. The monthly cost<br />
of these services can easily exceed $100.<br />
Providing wired and wireless highspeed<br />
Internet access in a community’s<br />
amenity areas can cost more than $300<br />
a month. Office broadband connections<br />
may cost anywhere from $150 a month<br />
for a commercial cable modem with<br />
static IP to nearly $1,000 a month for a<br />
T1 circuit. In addition, the average community<br />
spends $700 or more per month<br />
on office and other phone lines.<br />
Thus, total monthly costs for voice,<br />
video and high-speed Internet access<br />
in amenity areas and offices typically<br />
exceed $1,000 per month – which owners<br />
should take into consideration when<br />
they negotiate marketing agreements.<br />
In summary, in order to ascertain<br />
the value of any new marketing and services<br />
agreement, owners must comprehensively<br />
evaluate all revenues, costs and<br />
liabilities. BBP<br />
About the Authors<br />
Owners Corner is written by Henry Pye and industry peers. Henry is vice president<br />
of Resident Technology Solutions for RealPage (www.realpage.com). He can be<br />
reached at Henry.Pye@RealPage.com. Mark Bershenyi is director of contracts for<br />
Archstone (www.archstoneapartments.com). Mark can be reached at MBershenyi@<br />
archstonemail.com.<br />
10 | BROADBAND PROPERTIES | www.broadbandproperties.com | November/December 2009
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Quanta Services is keeping pace. We literally laid the groundwork of the fiber optic network that we’re expanding today<br />
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Standardizing Infrastructure<br />
To provide successful next-generation Internet service in their properties,<br />
owners must start in the procurement phase.<br />
By David Daugherty ■ Korcett Holdings<br />
This month, we discuss the need<br />
for standardizing the logical and<br />
physical design of premises infrastructure.<br />
Remember that standardization<br />
allows you to apply the basic problem-resolution<br />
technique you learned in<br />
high school: to make problem resolution<br />
less complex, hold steady as many<br />
variables as possible. Once you establish<br />
standards, the installation, configuration<br />
and cutover of new services becomes a<br />
predictably reliable process. Standardization<br />
also facilitates design maturity. As<br />
you identify and eliminate problems, the<br />
overall stability of the design improves.<br />
Developing a Request<br />
for Quote<br />
As a property owner or manager, your<br />
first and perhaps most important step in<br />
deploying next-generation solutions is<br />
the request for quote, or RFQ. The RFQ<br />
is where you begin to educate would-be<br />
service providers about the services you<br />
want and how you want them to be deployed<br />
and supported. Take as much<br />
ambiguity out of the RFQ as possible,<br />
and certainly don’t ask service providers<br />
for proposals. If you ask any five network<br />
engineers how to build a network,<br />
you’ll be lucky to get only five different<br />
designs. Requests for proposals (RFPs)<br />
and RFQs are not the same.<br />
If you are unfamiliar with the process<br />
of assembling an RFQ, find a reputable<br />
engineering firm to help you develop<br />
your in-house design, deployment<br />
and support standards. Byproducts of<br />
these standards include the RFQ, network<br />
design, service-level agreement<br />
(SLA terms and conditions) and requirements<br />
for ongoing support. Once you<br />
have developed standards, you can issue<br />
new RFQs quickly, and service providers<br />
will eventually learn what to expect<br />
from you. Each time you issue an RFQ,<br />
your template will mature, vendors will<br />
understand better how to respond, and<br />
you will become better at judging how<br />
realistic vendor responses are.<br />
The advantages of a well-executed<br />
RFQ include<br />
• Less time required to assemble the<br />
next RFQ<br />
• Less time required for service providers<br />
to respond<br />
• Apples-to-apples comparisons of<br />
competing service providers<br />
• Clear, predictable responses from<br />
service providers<br />
• Much better chances of getting acceptable<br />
service<br />
• A repeatable business case from one<br />
property to the next<br />
• Economies of scale in purchasing<br />
equipment<br />
• Better chances of differentiating your<br />
properties from your competitors’<br />
• Establishment of maintenance and<br />
support standards.<br />
Of course, standards take you only so<br />
far. Network physical attributes change<br />
from one installation to the next: how fiber<br />
is routed to the property, the location<br />
of the main and intermediate distribution<br />
frames, the condition of the existing<br />
infrastructure, the local wiring codes and<br />
labor laws.<br />
Most competent construction companies<br />
can easily manage these common<br />
construction issues. However, because<br />
builders are comfortable with these issues,<br />
they tend to treat low-voltage infrastructure<br />
just like any electrical wiring<br />
job – which is how they run into problems.<br />
Because low-voltage infrastructure<br />
is a specialized field of expertise, be sure<br />
to get referrals from people you trust before<br />
hiring a low-voltage contractor.<br />
Management and Support<br />
Most RFQs emphasize products rather<br />
than services. Builders or their consultants<br />
focus on a project’s physical aspects<br />
with little or no attention to long-term<br />
management and support.<br />
That’s a mistake. Your design, and<br />
therefore your RFQ, must address questions<br />
such as these: How is the network<br />
monitored? What happens when a problem<br />
occurs? How is the problem escalated<br />
if not resolved? What information<br />
is collected, and how is it used to manage<br />
operations and support? What are<br />
the metrics for success? Specifying these<br />
requirements is how you and your vendors<br />
establish and manage expectations,<br />
and how the RFQ will become the foundation<br />
for your managed-service agreement<br />
with your service provider.<br />
In the next issue, we will discuss the<br />
site survey. From a metrics perspective,<br />
this is where you set the baseline for<br />
performance measurement. We will also<br />
begin to explore various performance<br />
measurements and how they relate to<br />
resident satisfaction and ultimately to<br />
the property’s ROI. BBP<br />
See a sample RFQ at www.bbpmag.com<br />
About the Author<br />
David Daugherty is the CEO and founder 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 service solutions.<br />
12 | BROADBAND PROPERTIES | www.broadbandproperties.com | November/December 2009
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Telework Day Generates<br />
Savings in Virginia<br />
A statewide experiment shows that telework is a triple win –<br />
good for employees, employers and the environment.<br />
On August 3, 2009, about 4,000<br />
public- and private-sector employees<br />
in Virginia stayed home<br />
from work – or, more precisely, stayed<br />
home to work. Compared with their<br />
normal commuting days, they were happier<br />
and more productive and, of course,<br />
they generated much less pollution. The<br />
public-private partnership Telework Exchange<br />
(www.teleworkexchange.com)<br />
compiled the findings from the day.<br />
Telework Day was a statewide effort<br />
led by Governor Timothy Kaine, who<br />
issued the executive order encouraging<br />
organizations and individuals to telework<br />
from home or a remote location.<br />
On August 3, teleworkers in Virginia –<br />
2,286 federal and private employees and<br />
1,765 state employees – saved $113,000,<br />
avoided driving 140,000 miles and<br />
avoided discharging 75.89 tons of pollutants<br />
into the air. (About 200 workers<br />
from other states participated as well.)<br />
The participants who were Virginia state<br />
employees represented nearly a third of<br />
all state workers; most of the other twothirds<br />
said they had work that could not<br />
be completed out of the office that day.<br />
Though about a fifth of the participants<br />
had never teleworked before,<br />
almost all participants had positive experiences<br />
on Telework Day. A survey<br />
showed that 78 percent of the teleworkers<br />
encountered no difficulties, 96 percent<br />
felt they had accomplished at least<br />
as much as in a typical day at the office<br />
and 69 percent felt they had actually accomplished<br />
more.<br />
Ninety-one percent of those surveyed<br />
said they would be more likely<br />
to telework again as a result of their experience.<br />
They had a variety of reasons<br />
for wanting to do more telework: Aside<br />
from avoiding commute time and costs,<br />
they felt working from home would allow<br />
them to meet deadlines that require<br />
uninterrupted work and would also help<br />
them balance work and family responsibilities.<br />
In addition, about half said their<br />
employers were encouraging telework<br />
and that telework was part of their organization’s<br />
business continuity plan.<br />
Employers, too, were pleased with the<br />
day’s results. They said telework would<br />
help their employees with work-life balance;<br />
that it would help with recruitment,<br />
retention and productivity; and that it<br />
had a positive environmental impact.<br />
The Potential of Telework<br />
If all eligible employees in Virginia teleworked<br />
one day per week for a year, the<br />
Telework Exchange found, they would<br />
collectively avoid driving 602 million<br />
miles, avoid emitting 360,800 tons of<br />
pollutants and save $807 million in<br />
commuting costs. Over the course of a<br />
year, this would equal a $1,822 annual<br />
raise for every teleworker in Virginia<br />
and save each person 46 hours of commuting<br />
time per year.<br />
What is needed to realize the potential<br />
of telework, besides more executive<br />
orders? Participants emphasized that<br />
good connectivity was an important<br />
element of successful teleworking. (See<br />
box.) Other research bears this out: Michael<br />
Render of RVA LLC has found in<br />
his annual surveys that employees with<br />
fiber-to-the-home connections telework<br />
more often and more successfully than<br />
those with other types of broadband<br />
connections (or those who did not have<br />
broadband connections).<br />
Employers are more confident that<br />
the speed and reliability of FTTH connections<br />
will enable their employees to<br />
be as productive at home as they are in<br />
the office. BBP<br />
Best Practices for Telework<br />
Telework Day participants’ comments on what makes telework successful:<br />
• Ability to connect to everything that is normally available at an office<br />
desk.<br />
• Connectivity to coworkers and clients.<br />
• Full support and encouragement from agency or business leadership.<br />
• Opportunity to plan telework and cover tasks that must be carried out<br />
at the work site, such as direct consumer services.<br />
• An environment conducive to working – quiet surroundings, ability to<br />
connect to the network, etc.<br />
14 | BROADBAND PROPERTIES | www.broadbandproperties.com | November/December 2009
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One Size Doesn’t Fit All<br />
Creative fiber deployers and vendors work together to find the best tools and<br />
methods for every fiber deployment – making more business cases possible.<br />
By Masha Zager ■ <strong>Broadband</strong> <strong>Properties</strong><br />
When you’re a giant telephone company rolling out<br />
fiber to 18 million premises (see “FiOS at Five,”<br />
below), you have an easy time commanding vendors’<br />
attention. The telco in question worked closely with<br />
many vendors to develop or fine-tune the FTTH solutions<br />
it needed – bend-insensitive fiber, indoor optical network<br />
terminals (ONTs), one-pass drop cable solutions and vertical<br />
distribution systems, to name just a few.<br />
If you’re a rural telco or a municipality, vendors are<br />
less likely to design fiber solutions specifically for you. The<br />
good news is that off-the-shelf products are becoming more<br />
varied and more configurable. Modular fiber-management<br />
products allow deployers to tailor solutions (often with some<br />
hand-holding from vendors) to suit their geographies and<br />
markets. ONTs are designed for many applications – even<br />
some applications, such as mobile backhaul, that few people<br />
thought about until recently. Fiber is as compatible now<br />
with cable back-office systems as with telco systems. New<br />
products are being developed just to make other products<br />
– such as IPTV middleware and billing software – work<br />
together.<br />
This month’s roundup of deployment stories includes<br />
many examples of providers whose FTTH business cases<br />
were made possible by new products and methods. This illustrates<br />
the maturing of the industry as much as the march<br />
of technology. After designing the first generations of products<br />
for the simplest business cases (such as new single-family<br />
home developments), vendors are finding that relatively simple<br />
tweaks to their product lines will make fiber deployments<br />
feasible where they weren’t before. As we look forward to a<br />
fiber-connected world, that’s good news indeed.<br />
– MZ<br />
INDEPENDENT<br />
TELCOS<br />
Configuring Fiber Management for Rural Needs<br />
Garden Valley Telephone Company<br />
(GVTEL), one of Minnesota’s largest cooperatives,<br />
is bringing broadband services<br />
over fiber to a large, sparsely populated<br />
area covering almost 500 route miles in<br />
the northwest of Minnesota. Facilities<br />
manager Randy Versdahl says, “The vast<br />
terrain and rural locale pose a special<br />
challenge because we’ll be running hundreds<br />
of miles of fiber. But it’s necessary<br />
because our customers deserve access to<br />
the same kind of telecommunications<br />
services available in large urban areas,<br />
like IPTV and higher Internet speeds.”<br />
GVTEL chose Clearfield’s modular<br />
FieldSmart platform for fiber management<br />
because it allows the company to<br />
configure its fiber management to the<br />
Vast, rural territories may pose special challenges<br />
for the fiber-to-the-home deployer.<br />
unique needs of its rural environment.<br />
“One of the main concerns with any largescale<br />
project is cost. Clearfield’s products<br />
are simply less expensive to deploy and<br />
operate than the competition’s,” says<br />
Versdahl. “Additionally, it was important<br />
to have a flexible and reliable long-term<br />
solution that would protect future FTTP<br />
deployments. Clearfield’s outside plant<br />
cabinets allow us to make efficient use of<br />
our existing fiber optic cable network as<br />
well as plan for future growth.<br />
“Plus, we just liked the way Clearfield’s<br />
products looked,” he adds.<br />
Even as cold temperatures settle over<br />
the North Star State, Versdahl says the<br />
installation is going well. “Our only real<br />
concern now is making sure this stage of<br />
the project gets done before the ground<br />
freezes.”<br />
Clearfield fiber management products<br />
are also being used in several new<br />
FTTH deployments by Arvig Communications<br />
Systems (ACS) in Perham,<br />
Minn. ACS, which owns several small<br />
telcos and cable television systems,<br />
serves more than 40,000 access lines<br />
in northwestern Minnesota. ACS is<br />
16 | BROADBAND PROPERTIES | www.broadbandproperties.com | November/December 2009
currently rolling out FTTH for approximately<br />
2,000 homes, businesses and cellular<br />
backhaul points, laying hundreds<br />
of miles of fiber through the towns of<br />
Perham, New York Mills, Osage, Osakis<br />
and White Earth.<br />
Director of network operations Andy<br />
Klinnert calls Clearfield systems “clean<br />
and simple.” He says, “Because distances<br />
are always an issue in rural builds, we<br />
want to eliminate electronics and the<br />
need for power in the distribution network.”<br />
Mentioning ACS’ earlier successful<br />
experiences with Clearfield solutions,<br />
Klinnert adds, “We’ve been particularly<br />
satisfied with the Clearfield Fiber Cross-<br />
Connect Cabinets. They’re environmentally<br />
tight, so they’re dust free and rodent<br />
proof. They’re also simple enough that<br />
if someone opens the door, the product<br />
is very intuitive when it comes to how<br />
it works. … Of course, cost is always a<br />
consideration. Clearfield products are efficient.<br />
We think we’re saving money.”<br />
Spring Valley Telephone (SVTEL)<br />
also selected Clearfield products and<br />
services for its new FTTH deployment,<br />
citing lower costs and greater efficiency.<br />
SVTEL, which provides telecommunications<br />
services in west central Wisconsin,<br />
launched the first phase of its project in<br />
spring 2009.<br />
SVTEL plant manager Steve Marek<br />
says, “We want to address any and all<br />
bandwidth requirements our customers<br />
currently have and will have in the future.<br />
It’s important that we have a competitive<br />
advantage with our triple-play offering<br />
of Internet, video and telephone.” Marek<br />
says a benefit to the company is increased<br />
landline business: “Our intention is to regain<br />
customers that have given up their<br />
landlines and opted for cell phones. The<br />
triple-play option will bring them back.”<br />
Being able to custom configure<br />
Clearfield’s FieldSmart Fiber Management<br />
Platform to SVTEL’s specifications<br />
was critical to the company. It based its<br />
decision to use Clearfield on the ability<br />
to lower the costs of deployment – and<br />
of ongoing network management. “We<br />
were drawn to Clearfield’s Clearview<br />
Cassette and its patch-and-splice design.<br />
Because splicing is an integrated function<br />
within the Clearview Cassette, we were<br />
able to eliminate the use of fiber entrance<br />
cabinets in the central office. This saved<br />
us money – and space, which is huge,”<br />
Marek says.<br />
McDonald County Telephone<br />
Company (MCTC) in Pineville, Mo.,<br />
selected the Enablence MAGNM platform<br />
for its network migration. MCTC,<br />
which serves 4,000 subscribers in rural<br />
Missouri, chose the MAGNM for its all-<br />
IP/Ethernet access network with FTTH<br />
capability, its cost and its ability to meet<br />
subscriber bandwidth requirements.<br />
The company’s goal is to move from<br />
its broadband copper access model to<br />
FTTH; this project should help service<br />
up to 1,000 subscribers.<br />
“McDonald County has an established<br />
relationship with Enablence as a<br />
user of its MAGNM-FX, and we found<br />
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November/December 2009 | www.broadbandproperties.com | BROADBAND PROPERTIES | 17
Enablence’s new solution the best fit for<br />
our evolving needs,” says Ross Babbitt,<br />
general manager of McDonald County.<br />
“The MAGNM-20’s flexibility to scale<br />
offers the most efficient service to our<br />
customers and Enablence was able to<br />
provide the services within hours of the<br />
first installation, with no problems.”<br />
Enablence announced two other customer<br />
wins with independent telephone<br />
companies, one in the Southeast and the<br />
other in the North. Both companies,<br />
which Enablence did not name, will use<br />
the MAGNM platform for FTTH overbuilds.<br />
One of them will use the indoor<br />
version of Enablence’s E-1320 ONT.<br />
Polar Communications, an independent<br />
local exchange carrier (ILEC)<br />
serving 12,000 subscribers in North<br />
Dakota and Minnesota, is deploying<br />
FTTH using the Occam Networks<br />
platform. Polar had been pursuing a<br />
fiber-to-the-node strategy, but as service<br />
and operational requirements increased,<br />
the company realized FTTN would not<br />
keep up with future demand.<br />
The solution, which began two years<br />
ago and will continue with the current<br />
Occam deployment, was a shift to<br />
FTTP. To accommodate the expected<br />
growth in last-mile traffic, Polar is also<br />
deploying Occam’s 10 Gigabit Ethernet<br />
aggregation solution. DSL continues to<br />
play an important role in Polar’s broadband<br />
network.<br />
“Our long-term strategy is to continue<br />
a steady FTTH build, and when<br />
we are finished, go back and replace our<br />
original FTTN infrastructure by extending<br />
fiber to the home,” says David<br />
Dunning, general manager and CEO<br />
of Polar Communications. “Furthermore,<br />
we have already purchased Occam<br />
equipment to upgrade two larger<br />
exchanges to GPON next year. We plan<br />
to offer triple-play services to our subscribers,<br />
and Occam access equipment is<br />
a critical part of that strategy.”<br />
Telcos Split Between<br />
RF Video and IPTV<br />
Cincinnati Bell, a large telco based in<br />
Cincinnati, Ohio, selected Motorola’s<br />
GPON, edge modulation, encryptor<br />
and encoding solutions for deployment<br />
in its fiber network, which will deliver<br />
advanced triple-play services across<br />
southern Ohio and northern Kentucky.<br />
A new health care network in Ohio will facilitate<br />
telemedicine, electronic medical record keeping<br />
and regional health information.<br />
Cincinnati Bell, which already uses<br />
Motorola set-top boxes, serves subscribers<br />
in both single-family and MDU<br />
environments. “In selecting a nextgeneration<br />
video network solution, we<br />
looked for a partner with extensive fiber<br />
experience, including the proven ability<br />
to serve the MDU market,” says Darrick<br />
Zucco, general manager, Fioptic Services<br />
of Cincinnati Bell.<br />
Cincinnati Bell’s fiber network will<br />
run on Motorola’s AXS2200 OLT and<br />
its 1 GHz-capable single-family and<br />
MDU ONTs. These solutions inherently<br />
support SCTE-55-1, or RF return path<br />
functionality, for easy integration with<br />
Motorola RF set-top boxes and headend<br />
equipment.<br />
Atlantic Telephone Membership<br />
Cooperative (ATMC) also selected Motorola’s<br />
GPON solution for deployment<br />
in its fiber-to-the-home network across<br />
greater Brunswick County, a resort area<br />
of North Carolina. ATMC deployed<br />
Motorola’s BPON equipment in earlier<br />
FTTH projects and will continue using<br />
that equipment; the GPON will be used<br />
in new fiber deployments. The choice of<br />
GPON allows ATMC to offer more-advanced<br />
services while continuing to use<br />
its RF video network and set-top boxes.<br />
Allen Russ, chief executive officer<br />
and general manager of ATMC, says,<br />
“We support a mix of RF video delivery<br />
over cable TV, BPON and now GPON<br />
networks. Motorola has made the deployment<br />
of residential and business<br />
services over these different networks as<br />
simple and as economical as possible –<br />
all while protecting existing investments<br />
in our RF video infrastructure and backoffice<br />
operations.”<br />
Middleburgh Telephone Company<br />
(MIDTEL), which serves an area west<br />
of Albany, N.Y., also selected Motorola’s<br />
GPON solution to deploy throughout<br />
its service area as it updates its current<br />
hybrid fiber/coax (HFC) network. “We<br />
see this as a great opportunity to deliver<br />
the highest-quality video and broadband<br />
services available today to our subscribers,”<br />
says Jason Becker, Middleburgh’s<br />
general manager. Middleburgh’s FTTP<br />
network will run on Motorola’s OLT<br />
and 1 GHz-capable single-family ONT.<br />
Internet Protocol TV, or IPTV, is<br />
gaining acceptance as an alternative to<br />
RF video, and Microsoft Mediaroom<br />
is increasingly gaining acceptance as<br />
IPTV middleware. Two FTTH providers,<br />
SureWest Communications and<br />
Reservation Telephone Cooperative<br />
(RTC), have selected the v.Allegro solution<br />
set from 180SQUARED to implement<br />
Microsoft Mediaroom middleware<br />
for IPTV. The solution set includes a<br />
variety of products and services to help<br />
integrate Mediaroom with billing and<br />
operating support systems and other<br />
third-party applications, as well as utilities<br />
such as Caller ID on TV and remote<br />
PVR scheduler.<br />
Brooks Goodall, RTC’s assistant operations<br />
manager, says, “The ease of integration,<br />
advanced management capabilities<br />
and expert professional services<br />
enabled us to go from initial planning to<br />
full launch in a very short time frame.”<br />
“Downtime Is Not an Option”<br />
for Business<br />
CityLink Telecommunications, which<br />
provides FTTP services to residential<br />
and commercial customers throughout<br />
the western United States, announced<br />
the successful launch of its point-ofpresence<br />
site (POP) in Los Angeles. The<br />
L.A. POP site, which is located in the<br />
1 Wilshire carrier hotel and collocation<br />
facility, enables connections to more<br />
than 180 other providers. CityLink says<br />
it is the first locally owned provider to<br />
establish a 10 Gbps Ethernet pipe between<br />
Los Angeles and its Albuquerque<br />
data center.<br />
The connection to the L.A. POP<br />
is improving the speed and quality of<br />
services for CityLink’s business clients.<br />
David West, manager of the IT network<br />
for the Verge Fund’s incubator building<br />
in downtown Albuquerque, says, “With<br />
the new link, I was able to immediately<br />
see a 300 percent increase in my average<br />
transfer rates.”<br />
18 | BROADBAND PROPERTIES | www.broadbandproperties.com | November/December 2009
CityLink operates an open-access,<br />
neutral fiber optic network and establishes<br />
peering and transit connections<br />
with major networks. Over the next few<br />
months, it plans to expand its 10GigE<br />
network with connections to Phoenix,<br />
El Paso, Sunnyvale, Portland, Seattle,<br />
Boise, Salt Lake, Denver, Chicago and<br />
New York.<br />
AboveNet, a competitive business<br />
provider delivering fiber-based services in<br />
15 top U.S. metro markets and London,<br />
recently announced that it had deployed<br />
network connectivity to enable CSS Studios<br />
to collaborate among multiple locations<br />
in Los Angeles and New York City.<br />
AboveNet’s local area network<br />
(eLAN) was configured for CSS Studios,<br />
a subsidiary of Discovery Communications,<br />
to help ensure the secure<br />
sharing of high-definition audio and<br />
video production elements. The eLAN<br />
also speeds the transmission of large<br />
post-production files at high data rates<br />
between facilities and to the Internet for<br />
delivery to clients. In addition to creative<br />
production support, the connectivity<br />
supports basic office applications, e-mail<br />
and non-production Internet access.<br />
Optimum Lightpath, a competitive<br />
carrier in the New York metropolitan<br />
area, announced that it is now serving<br />
Nu-Age Managed Services. Optimum<br />
Lightpath’s all-fiber Ethernet-based<br />
voice and Internet solutions help Nu-<br />
Age Managed Services deliver advanced<br />
IT solutions to customers’ offices, maintain<br />
always-on operations across its corporate<br />
campus, and power its on-site<br />
business continuity and disaster recovery<br />
services, while saving tens of thousands<br />
of dollars per year.<br />
By deploying the Optimum Lightpath<br />
network across the 100-acre corporate<br />
campus known as the IBM Palisades<br />
Conference Center, Nu-Age Industries<br />
significantly increased its communications<br />
bandwidth, added reliability and<br />
reduced risk. It plans to add more bandwidth<br />
within the next year.<br />
Anthony Chillino, president of Nu-<br />
Age Industries, says, “Our customers<br />
rely on us as a one-stop shop for IT<br />
hardware, software, managed services<br />
and data center excellence. Our customers’<br />
businesses are highly dependent on<br />
constant communications, so downtime<br />
is not an option.”<br />
Horizon Telcom, a fiber-to-thehome<br />
deployer in Ohio, is planning to<br />
connect more than 120 local health care<br />
facilities with fiber. The Southern Ohio<br />
Health Care Network (SOHCN) will<br />
use Enhanced ALTOS gel-free optical<br />
fiber cables from Corning Cable Systems,<br />
distributed by KGP Logistics. These are<br />
lightweight cables designed for duct and<br />
aerial installation, providing optical and<br />
mechanical performance over a wide<br />
temperature range.<br />
The new fiber network will allow<br />
area health care providers to participate<br />
in telemedicine initiatives, community<br />
health-record projects and the regional<br />
health information organization. Use of<br />
the network will also encourage sustainable<br />
rural medical practices, collaboration<br />
among health care providers and<br />
emergency communications.<br />
Between 60 and 75 percent of SOH-<br />
CN’s 34-county area has no access to<br />
broadband, making the already difficult<br />
task of rural economic development even<br />
more challenging. Small-business innovation,<br />
telemedicine, and distance learning<br />
opportunities remain out of reach for<br />
a region that includes the state’s 10 poorest<br />
counties and all of Appalachia Ohio’s<br />
at-risk and distressed counties.<br />
CenturyLink, now the largest of the<br />
independent telephone companies, has<br />
begun deploying fiber to wireless towers<br />
for mobile backhaul throughout its<br />
33-state footprint, using the new Calix<br />
766GX, 766GX-R, and 765G-R GPON<br />
ONTs. The ONTs can be installed in<br />
existing huts at the cell towers or hung<br />
directly on the tower; they can be used<br />
Vendor Spotlight<br />
180SQUARED . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.180squared.com<br />
Alloptic ..................................................www.alloptic.com<br />
Calix ........................................................www.calix.com<br />
Clearfield . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.clearfieldconnection.com<br />
Corning Cable Systems ......................www.corningcablesystems.com<br />
Enablence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.enablence.com<br />
KGP Logistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.kgptel.com<br />
Microsoft . .............................................www.microsoft.com<br />
Motorola . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.motorola.com<br />
Occam Networks ................................www.occamnetworks.com<br />
OFS .................................................... www.ofsoptics.com<br />
Tantalus Systems .........................................www.tantalus.com<br />
U-reka <strong>Broadband</strong> Ventures . . . . . . . . . . . . . . . . . . . . www.u-rekabroadband.com<br />
WBS Connect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.wbsconnect.com<br />
with the Calix C7 platforms that CenturyLink<br />
has already deployed for other<br />
applications.<br />
Mobile subscribers’ demands for multimedia<br />
and data services are overloading<br />
today’s 3G networks, and the imminent<br />
transition to 4G will require backhaul<br />
rates of at least 100 Mbps. GPON-based<br />
mobile backhaul solutions, which support<br />
multiple T1 and gigabit Ethernet ports<br />
and require no active equipment in the<br />
field, give mobile operators a cost-effective<br />
way to address demands for reliability<br />
and service quality, while providing a<br />
transition path for increasing bandwidth<br />
requirements. According to Calix marketing<br />
director Geoff Burke, ONTs can<br />
be dedicated to individual mobile operators<br />
or shared among carriers.<br />
IDC analyst David Emberley says,<br />
“As the future services of mobile operators<br />
expand to include rich, interactive<br />
applications like streaming video, telepresence,<br />
gaming and other videocentric<br />
applications, service providers like<br />
CenturyLink will increasingly look to<br />
GPON, with its high-bandwidth capacity,<br />
as being best aligned to meet this<br />
demand. With hundreds of thousands<br />
of cell towers spread across North America,<br />
and tens of thousands added every<br />
year, this is a significant market.” A recent<br />
New Paradigm Resources Group<br />
(NPRG) report found that there were<br />
more than 250,000 cell towers in North<br />
America, less than 16 percent of them<br />
fiber-fed. Major wireless players now<br />
routinely offer exclusive long-term contracts<br />
to service providers who invest in<br />
pulling fiber to the cell tower. BBP<br />
November/December 2009 | www.broadbandproperties.com | BROADBAND PROPERTIES | 19
Medical Arts Radiology Uses Fiber Connection for Teleradiology<br />
Medical Arts Radiology, one of the largest medical imaging<br />
groups in Long Island, is improving its business processes,<br />
going green and saving lives – all due to the fiber connection<br />
from its telecom provider, Cablevision subsidiary Optimum<br />
Lightpath.<br />
Until recently, radiologists at Medical Arts had to wait for<br />
faxes or film to arrive in the mail and for data to be sent over a<br />
T1 line. Now the radiologists rarely print images and the facility<br />
saves money on personnel time, paper, printing chemicals<br />
and storage space for all the film. Less printing translates into<br />
environmental benefits, too.<br />
With a 1 Gbps fiber optic circuit and 20 Mbps Internet connection,<br />
Medical Arts Radiology specialists can view scans<br />
anytime, from any office, at home or on vacation. The doctors<br />
can also market their expertise nationally and globally by offering<br />
consultations and second opinions to other facilities<br />
and hospitals.<br />
“In our experience, you cannot perform modern radiology<br />
with a T1 line. You have to have fiber,” says Dr. Pradeep<br />
Albert, chief information officer of Medical Arts Radiology. “We<br />
can view an image taken from any of our six offices and read it<br />
anywhere we can access a PC or laptop. Our doctors can even<br />
access the secure clinical records system and view patient information<br />
on their mobile devices, such as iPhones and Black-<br />
Berrys. Our business depends on Optimum Lightpath. We love<br />
the product – it’s changed the way we do things.”<br />
According to Dr. Albert, radiology has become such a specialized<br />
profession that doctors specialize in reading images of<br />
specific body parts. “We have superspecialists in every field,”<br />
he says. “If a patient is imaged in the Patchogue office and the<br />
expert for his problem is in the Huntington office, we want the<br />
expert to look at the images and decide what to do with the patient.<br />
If a radiologist wants a second opinion from an office 30<br />
miles away, he can get it immediately and they can discuss the<br />
diagnosis together. … we can say, ‘Give him some IV contrast’<br />
or ‘Get him to the emergency room’ or ‘Get him into surgery<br />
right away.’ The patient doesn’t know how far away the radiologist<br />
is – it’s all seamless and just part of our regular work.<br />
“Patients sometimes come from far away, so the doctor<br />
who ordered the test might be in Connecticut, Florida, New<br />
York City or Long Island, but he still wants to look at the images.<br />
When the doctor picks up the phone and says, ‘I want to<br />
know whether to operate,’ he can log on to the Web site and<br />
we’ll look at the images together at the same time. The Optimum<br />
Lightpath product makes it easy for us to do this. … To<br />
reduce radiation, we’ll try to get the images faster to the referring<br />
doctor so tests won’t be needlessly repeated.”<br />
Technology That Saves Lives<br />
Dr. Albert adds, “Last week someone came in for a pulmonary<br />
embolism, which is a blood clot in the lungs that can be potentially<br />
fatal. The patient seemed fine but we were able to<br />
determine in minutes that the patient did in fact have PE. We<br />
immediately printed out the films and sent him to the hospital.<br />
Faster technology helps us make quicker decisions. In this<br />
case, it meant the difference between sending someone home<br />
to wait for a report, sending [him] to the ER to wait for hours as<br />
[his] condition worsens or diagnosing [him] immediately and<br />
getting [him] urgent care. It can mean saving lives.”<br />
Dr. Albert says the practice has gone “totally paperless,”<br />
changing its workflow for insurance verifications and medical<br />
record keeping, and eliminating the physical mailing of images.<br />
As a result of these efficiencies, the practice has been able to<br />
grow organically from four to six offices without increasing its<br />
administrative staff. In addition, he says, “We actually get to<br />
spend more time with patients, and they spend less time in<br />
the waiting room.”<br />
Now that he can review images from anywhere, Dr. Albert<br />
doesn’t have to spend so much time driving between offices.<br />
“People don’t think of fiber and new technology as green, but<br />
you’re really saving energy on multiple levels – all that driving<br />
back and forth, and less transportation of material goods,”<br />
he says.<br />
Municipal<br />
Fiber<br />
Chattanooga Goes Live With FTTH<br />
And Gets a Smart-Grid Grant<br />
The Electric Power Board (EPB) in<br />
Chattanooga, Tenn., launched its fiber<br />
optic services to an initial 17,000 homes,<br />
then quickly expanded into new areas<br />
with an additional 10,000 homes. “With<br />
the overwhelming response we’ve received,<br />
we know that customers are anxious<br />
for the opportunity to experience<br />
our 100 Percent Fiber Optics network,”<br />
says Katie Espeseth, vice president of<br />
EPB Fiber Optics. “That excitement<br />
in our community is the reason we are<br />
working hard to make services available<br />
to as many homes as possible, as quickly<br />
as we can.” The network is scheduled for<br />
completion by July <strong>2010</strong>.<br />
EPB was also awarded $111.6 million<br />
in federal stimulus funding by<br />
the Department of Energy toward the<br />
buildout of its $226.7 million electric<br />
utility smart grid.<br />
The grant will not only speed up the<br />
smart-grid buildout but also help EPB<br />
provide smart meters throughout its<br />
service area. The smart meters will be<br />
integrated into the FTTH network. Advanced<br />
metering technology, developed<br />
20 | BROADBAND PROPERTIES | www.broadbandproperties.com | November/December 2009
in cooperation with Tantalus Systems Corp., will communicate<br />
as many as 80 billion customer consumption data points<br />
per year, giving consumers real-time information about their<br />
electricity use and pricing options.<br />
BVU OptiNet, the municipal fiber provider for Bristol, Va.,<br />
announced that it had reached the 10,000-customer milestone.<br />
BVU has been recognized for its service with the <strong>Broadband</strong><br />
<strong>Properties</strong> Cornerstone Award, the ICF Top Seven Most Intelligent<br />
Communities and the National Association of Telecommunications<br />
Officers and Advisors’ Community <strong>Broadband</strong><br />
Fiber Network of the Year award. BVU, now part of the Bristol<br />
city government, is proposing to become an independent public<br />
authority.<br />
Sunset Digital Communications, which operates the fiber<br />
optic network for the LENOWISCO Rural Area Network,<br />
says it has entered into an agreement to acquire wholesale<br />
bandwidth from WBS Connect. WBS Connect can purchase<br />
Internet service in large quantities and resell it to service pro-<br />
Deployer Spotlight<br />
States with deployments<br />
referenced in this article<br />
Alaska<br />
North American Telcos<br />
AboveNet Communications<br />
www.abovenet.com<br />
Arvig Communications Systems<br />
www.arvig.com<br />
Atlantic Telephone Membership Cooperative www.atmc.net<br />
CenturyLink<br />
www.centurylink.com<br />
Cincinnati Bell<br />
www.cincinnatibell.com<br />
CityLink Telecommunications www.citylinkfiber.com<br />
Garden Valley Telephone Company<br />
www.gvtel.com<br />
Horizon Telcom<br />
www.horizontel.com<br />
Margaretville Telephone Company www.mtctelcom.com<br />
McDonald County Telephone Company www.olemac.net<br />
Middleburgh Telephone Company<br />
www.midtel.net<br />
Optimum Lightpath<br />
www.optimumlightpath.com<br />
Polar Communications<br />
www.polarcomm.com<br />
Reservation Telephone<br />
Cooperative<br />
www.reservationtelephone.com<br />
Spring Valley Telephone<br />
SureWest Communications<br />
Verizon Communications<br />
www.svtel.net<br />
www.surewest.com<br />
www.verizon.com<br />
Other North American Deployers<br />
BVU OptiNet<br />
www.bvu-optinet.com<br />
City of Staples, Minn.<br />
www.staples.govoffice.com<br />
DubLink<br />
www.dublin.oh.us/econdev/dublink.php<br />
Electric Power Board (Chattanooga)<br />
www.epb.net<br />
Lac qui Parle County Economic<br />
Development Authority<br />
www.lqpeda.com<br />
LENOWISCO Rural Area Network www.lenowisco.org<br />
MetroCast<br />
www.metrocast.com<br />
Rutland Redevelopment<br />
Authority<br />
www.rutlandvtbusiness.com<br />
November/December 2009 | www.broadbandproperties.com | BROADBAND PROPERTIES | 21
viders at lower rates than they could acquire the service, generating<br />
savings that will be passed on to Sunset’s customers.<br />
Sunset’s purchase of bandwidth from WBS adds a data<br />
path to Atlanta that will complement its current connection to<br />
Ashburn, Va. The redundant path also reduces the chances of<br />
service outages – an important consideration for large companies<br />
scouting for data center locations, as well as for local businesses<br />
that rely on the Internet. Paul Elswick, president of Sunset<br />
Digital Communications, says, “The ability to obtain this<br />
kind of high-capacity connectivity is a huge leap forward for<br />
the area. We actually had a vehicle accident the other day that<br />
took down our Ashburn connection temporarily, and none of<br />
our customers noticed. When problems are transparent to our<br />
customers and their businesses, everyone wins. That’s the level<br />
of service we want to provide.”<br />
(For more information about Sunset Digital Communications<br />
and LENOWISCO, see this month’s Municipal FTTH<br />
Snapshot.)<br />
The city of Dublin, Ohio, entered into an agreement with<br />
DataCenter.BZ, a carrier-neutral data center, to bring dark fiber<br />
from its DubLink system to the DataCenter.BZ facility in<br />
Worthington, Ohio.<br />
DubLink, a 120-mile system of underground fiber optic<br />
conduits in the city’s business district, enables interconnectivity<br />
between facilities on the fiber route. The network<br />
GM6037AD4C.QXD 6/10/08 4:11 PM Page 1<br />
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corporations time and money by providing a telecommunications<br />
pathway on which businesses can lease space rather than<br />
construct their own lines. The Dublin City Council authorized<br />
the sublease of the city’s optical fiber, which will increase the<br />
amount of available bandwidth in the region.<br />
Businesses can now connect to carriers or use other services<br />
at the DataCenter.BZ data center, including collocation, physical<br />
security for IT equipment, Tier IV power, 24/7 managed<br />
services, virtualization and cloud computing.<br />
“Not only is this an economical way for companies to<br />
privately connect to IT and telecommunication solutions; it<br />
eliminates the restriction of bandwidth that is often created by<br />
telecom carriers,” says Gordon Scherer, president of DataCenter.BZ.<br />
“Utilizing dark fiber, businesses have complete control<br />
over their bandwidth and can increase or decrease their speeds<br />
based solely on the equipment they choose to operate.”<br />
Connectivity at DataCenter.BZ also provides DubLink<br />
with direct fiber-ring access to competing cell phone carriers;<br />
cable TV companies; local, national and global telecommunication<br />
carriers; Internet2; and IPTV providers.<br />
In Vermont, the Rutland Redevelopment Authority –<br />
a branch of the Rutland city government – plans to launch<br />
a company to provide fiber-based telecom services to greater<br />
Rutland County. After considerable debate, the city’s Board of<br />
Aldermen took a significant step toward realizing the project:<br />
approving, by an 8-to-1 margin, a motion to sign a letter of<br />
intent to participate in Rutland Telecom. Several nearby towns<br />
have already signed such letters of intent.<br />
The community of Staples, Minn., won a Minnesota<br />
Community Pride award for its fiber broadband initiative. In<br />
this community of 3,100, the educational leaders, businesses,<br />
nonprofits and city government all see broadband capacity as<br />
key to economic growth and development and a means to ensuring<br />
long-term survival of the community. The judges said,<br />
“This is truly an opportunity to reinvent a low-income, rural<br />
area by establishing the groundwork necessary to bring in new<br />
people, new ideas, and new economic opportunities.”<br />
Staples’ initiative involves installing fiber optic lines to bring<br />
high-speed Internet to all homes and businesses in Greater Staples.<br />
In February 2009, the first phase – installation of a direct<br />
wireless system for those just outside city limits – went live. The<br />
second phase will involve installation of the broadband backbone<br />
linking the collaborating entities. Planners believe that the<br />
community collaborative team approach in Staples is unique.<br />
The Lac qui Parle County Economic Development Authority<br />
(EDA) received a $25,000.00 grant from the Blandin<br />
Foundation to prepare a Robust <strong>Broadband</strong> Network Feasibility<br />
Study for an ultra-high-speed fiber optic network across Lac<br />
qui Parle County in partnership with Farmer’s Mutual Telephone<br />
Company. Lac qui Parle County EDA has retained the<br />
services of U-reka <strong>Broadband</strong> Ventures to prepare the study.<br />
“The Lac qui Parle EDA is very excited to explore the possibility<br />
of bringing fiber-to-the-premises technology to all of Lac qui<br />
Parle County. This network will be an economic development<br />
driver and make us competitive locally, regionally and worldwide,”<br />
says Pam Lehmann of the Lac qui Parle EDA. BBP<br />
22 | BROADBAND PROPERTIES | www.broadbandproperties.com | November/December 2009
RBOC<br />
UPDATE<br />
FiOS at Five<br />
Verizon Communications is celebrating the fifth anniversary of<br />
FiOS, the largest fiber-to-the-home network in the United States.<br />
After proving the concept in a pilot project in Texas, Verizon began<br />
deploying FiOS on a large scale in fall 2004. Since that time,<br />
the economies of scale enabled by the FiOS build, together with<br />
Verizon’s pursuit of technical innovation, have been instrumental<br />
in making FTTH deployment faster and more economical<br />
for all providers. Verizon estimates that its deployment costs in<br />
<strong>2010</strong> will be only about half of what they were in 2004.<br />
One of the technologies Verizon has pioneered during the<br />
last three years is the use of bend-insensitive fiber in MDU<br />
applications, and it continues adding new fiber products to its<br />
tool kit. Fiber cable vendor OFS recently announced that Verizon<br />
will use its EZ-Bend MDU drop cable, which promises up<br />
to a 500-fold improvement in bending loss performance over<br />
conventional single-mode fiber cables under the tight bends<br />
found in MDU installations.<br />
By the end of September 2009, Verizon served 3.3 million<br />
FiOS Internet customers and 2.7 million FiOS TV customers<br />
in 16 states (about 110,000 of these customers are in the territories<br />
that are being sold to Frontier). FiOS Internet services<br />
were available to 11.5 million premises, and TV services were<br />
available to 10.9 million premises.<br />
Over the past year, the number of customers grew by 49.2<br />
percent for Internet and 67.7 percent for TV – a growth rate<br />
faster than the number of homes marketed. As a result, take rates<br />
have continued to rise; penetration is now at 28.5 percent for<br />
Internet service, compared with 24.2 percent a year earlier, and<br />
24.9 percent for TV, compared with 19.7 percent a year earlier.<br />
Despite the rapid year-over-year growth, the third quarter<br />
was somewhat slower than the second in terms of new customers<br />
added; 198,000 FiOS Internet customers and 191,000 new<br />
FiOS TV customers were added, compared with about 300,000<br />
each in the second quarter. However, construction continued at<br />
a rapid pace, with about 700,000 new premises passed by fiber<br />
(compared with 650,000 in the second quarter), for a total of<br />
14.5 million. The year-end target is 15 million premises passed.<br />
From Suburbs to Cities<br />
Verizon tested FiOS in Keller, Texas, a wealthy suburb of Fort<br />
Worth, and its first commercial rollouts focused on similar<br />
communities. After improving the technology for deploying<br />
fiber in MDUs, Verizon began deploying fiber in large cities.<br />
Winning a video franchise in New York City was a major step<br />
in this transition from suburban to urban deployments; the<br />
company is now building out in several major cities.<br />
Recently, Verizon held a ribbon-cutting ceremony to launch<br />
the FiOS build in Washington, D.C.; it expects to make services<br />
available in some parts of the city by year-end. It also<br />
debuted FiOS TV in Pittsburgh with more than 600 digital<br />
channels, 122 of them in high definition.<br />
The Evolution of FiOS Services<br />
Since 2004, Verizon has transitioned FiOS from BPON to<br />
GPON technology, introduced faster tiers of Internet service,<br />
launched a video service, added new features such as wholehome<br />
DVR, started its own local television channels, and<br />
made the TV experience interactive with a variety of widgets,<br />
or utility programs accessed from the TV.<br />
This fall, the company introduced the KODAK widget,<br />
which allows users to view photos and slideshows from<br />
Kodak’s online digital photo service on their TV screens. In<br />
the New York metropolitan region, subscribers have access to a<br />
webcam widget showing road conditions. Viewers can zoom in<br />
on specific roads or set favorites to display their regular commutes.<br />
Future New York widget enhancements may include<br />
cultural-event calendars, a taxicab “lost and found” listing,<br />
public transportation schedules, alternate-side parking information<br />
and school closures.<br />
In the future, Verizon plans to make FiOS a control hub for<br />
home systems controlling security, heating and air conditioning<br />
and consumer electronics.<br />
By the end of next year, Verizon should achieve its goal of<br />
passing 18 million homes; it projects that it will achieve Internet<br />
penetration of between 35 and 40 percent and TV penetration<br />
of close to 30 percent. Considering falling deployment costs,<br />
higher-than-expected take rates and rising revenues (average<br />
monthly revenue per residential user for FiOS is more than $137,<br />
about double the revenue for non-FiOS users), many observers<br />
expect the buildout to continue beyond that point. BBP<br />
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November/December 2009 | www.broadbandproperties.com | BROADBAND PROPERTIES | 23
Cable<br />
Providers<br />
MetroCast Deploys RFoG in Virginia<br />
In its first major deployment of the<br />
Motorola RFoG solution, regional cable<br />
operator MetroCast Communications<br />
will upgrade coaxial networks to FTTH<br />
at select Virginia properties. MetroCast<br />
is aiming to increase bandwidth capacity<br />
for new digital and HDTV channels<br />
and to provide video-on-demand, voice<br />
and tiered broadband services.<br />
Motorola says its all-fiber RFoG solutions<br />
have proven cost effective and<br />
easy to deploy, helping cable operators<br />
expand their service offerings while<br />
maintaining existing back-office operations,<br />
video infrastructure and customer-premises<br />
equipment.<br />
Bill Lee, vice president of engineering<br />
at MetroCast, says, “Evolving our network<br />
simply and economically is important<br />
to us. Deploying Motorola’s RFoG<br />
solution helps us meet customer demand<br />
for new and improved entertainment<br />
and broadband services while laying the<br />
groundwork for the future.” BBP<br />
MTC Connects Rural Customers With RFoG<br />
In the fiber-to-the-home world, telephone companies have<br />
embraced telco-friendly GPON and active Ethernet technologies,<br />
while cable companies experiment with the emerging<br />
cable-friendly RFoG standard. Sometimes, though, the telephone<br />
company is the cable company – especially in rural<br />
areas exempted from telephone/cable cross-ownership restrictions.<br />
When telcos upgrade their cable plant to fiber, they<br />
face the same issues as traditional cable companies.<br />
Margaretville Telephone Company (MTC) is a case in<br />
point. As an incumbent local exchange carrier (ILEC) in New<br />
York’s Catskill Mountain region, Margaretville offers DSL service<br />
in 99 percent of its service area. In 1996, it bought a cable<br />
TV company within its telco footprint and later expanded the<br />
cable plant outside that footprint.<br />
Nearby rural residents have been eager for MTC to expand<br />
its cable plant still further. In most cases, cable is their<br />
only broadband option – even wireless is not a viable solution<br />
in mountainous areas where cell-phone reception is spotty.<br />
About half of the homes belong to New York City residents<br />
who spend weekends and vacations in the mountains; many<br />
of these second-homers want to be able to to work from home<br />
so they can spend more time in the country. “The real estate<br />
folks and the local community depend on broadband in particular,”<br />
says Glen Faulkner, MTC’s general manager.<br />
Fiber in Low-Density Areas<br />
Most of MTC’s cable footprint has about 22 homes per mile. But<br />
the outlying areas whose residents were clamoring for broadband<br />
service had only 10 to 15 homes per mile – and, due to<br />
zoning restrictions, the density was unlikely ever to increase.<br />
Faulkner says, “For a telephone company, there are mechanisms<br />
to offset the costs of operating in high-cost areas. But in<br />
cable, it’s pretty much a straight business model, so you can’t<br />
always provide service to every customer.” For MTC to serve<br />
customers in low-density areas, a different technology was<br />
needed.<br />
Fiber seemed to offer a possible solution because it allows<br />
longer drop-cable lengths. “With coax, you have to build within<br />
150 feet of each home because of the loss of signal,” Faulkner<br />
explains. “But with fiber, you can run drops of 400 to 600 feet,<br />
or more if you want to. … You just have to run [the fiber] up the<br />
MTC completed its first FTTH trial in Bragg Hollow Valley.<br />
valley and you don’t have to worry about the homes that are<br />
400 or 600 feet up the road.”<br />
Combining FTTH With Cable<br />
To be practical, fiber equipment had to be compatible with existing<br />
cable systems; MTC couldn’t run a second set of systems<br />
just for a few outlying customers. In 2007, fiber equipment<br />
compatible with cable back-office systems and set-top boxes<br />
became available, and MTC made its first foray into fiber, trialing<br />
Alloptic’s RFoG technology in a valley with about 10 homes<br />
per mile.<br />
By avoiding the lateral cable runs needed to get within<br />
150 feet of each house, MTC could build out fiber for about 80<br />
percent of the cost of coax. Connecting customers was more<br />
expensive than with coax, because of the $300 micronode at<br />
each house and the longer drop cable – “but you’re only deploying<br />
that to customers, not to homes passed,” Faulkner<br />
points out.<br />
After testing different fiber-connection approaches, and<br />
based on feedback from technicians in the field, MTC decided<br />
to use connectorized drops at the poles – many of the poles<br />
are inaccessible via bucket truck, making fusion splicing at<br />
the pole difficult – and to fusion-splice fiber at the home so<br />
24 | BROADBAND PROPERTIES | www.broadbandproperties.com | November/December 2009
Aerial splice case where the connectorized drop is terminated.<br />
Enclosure and Alloptic NID at the side of the home.<br />
as to reduce the amount of slack on<br />
the poles.<br />
Based on the trial, MTC concluded<br />
that fiber was economically<br />
feasible in areas with fewer than 15<br />
homes per mile; at densities above<br />
15 hpm, coax is more cost effective.<br />
This finding is based on the “homerun”<br />
fiber topology that MTC chose.<br />
Faulkner says dedicated fiber is more<br />
future proof, because it will make upgrading<br />
to “true fiber to the home”<br />
easier. Although MTC expects RFoG<br />
to provide sufficient bandwidth for<br />
several years, dedicated fiber gives<br />
the company the option of eventually<br />
installing an OLT in the central<br />
office to upgrade specific users who<br />
need higher-bandwidth services<br />
than RFoG equipment will support.<br />
Feedback from the trial RFoG<br />
customers has been positive; although<br />
these customers receive the same services as neighbors<br />
with traditional cable systems, they are pleased to have up-todate<br />
infrastructure. They also appreciate the reliability of fiber.<br />
Faulkner says, “We have not had a single failure of a fiber or of<br />
the electronics to any of the customers.”<br />
New Fiber Projects<br />
MTC’s second fiber deployment will be in a nearby community,<br />
Downsville, which had asked the company to extend service<br />
OFS distribution cabinet where the dedicated fibers from<br />
each home are terminated.<br />
there when its own cable system became<br />
obsolete. Faulkner says, “It was<br />
never financially feasible to run a fiber<br />
facility down there to help them,<br />
but a few years ago we … facilitated<br />
building fiber into the community<br />
for a BOCES [educational cooperative]<br />
network. Once you have that<br />
down there, it becomes more financially<br />
attractive.”<br />
MTC obtained a video franchise<br />
from Downsville this year and expects<br />
to rebuild the town’s cable<br />
facilities in the next few months,<br />
using 1 GHz HFC in the village and<br />
deploying fiber to the home in outlying<br />
areas. The entire deployment will<br />
be designed for eventual conversion<br />
to FTTH.<br />
Additional RFoG projects are in<br />
planning stages; MTC has applied<br />
for broadband stimulus funding<br />
to extend cable services via fiber into several areas similar to<br />
the trial deployment area. Now that the company has some<br />
familiarity with deploying fiber, it is also considering upgrading<br />
its telephone network to FTTH (either RFoG or PON) so it<br />
can deliver video services to the less-populated areas outside<br />
the cable network. “We’re different from a lot of the telcos in<br />
the state who are trying to get into video service and have to<br />
do population centers first,” Faulkner comments. “We will be<br />
starting from the outside in.”<br />
INTERNATIONAL<br />
DEPLOYMENTS<br />
New Zealand to build out 100 Mbps fiber to schools … First open GPON network in the<br />
Netherlands … Fiber to the resort in St. Kitts … Green network initiative in Italy …<br />
Read all of these stories and more in the digital edition at<br />
www.bbpmag.com/bbponline.php<br />
November/December 2009 | www.broadbandproperties.com | BROADBAND PROPERTIES | 25
Municipal FTTH Deployment Snapshot<br />
LENOWISCO Planning District<br />
Commission and Sunset<br />
Digital Communications<br />
This month’s featured municipal FTTH deployer is LENOWISCO Planning District Commission, which partners with<br />
Sunset Digital Communications to bring fiber connectivity to southwest Virginia. The commission assists local governments in the<br />
district with community development activities. Nearly a decade ago, it realized that broadband would be instrumental in transitioning<br />
the area from a tobacco economy to a knowledge economy, and it has pioneered the use of FTTP for economic development.<br />
Our thanks to Paul and Ryan Elswick of Sunset Digital Communications for providing the information for this profile.<br />
– BBP Editors<br />
Background<br />
Network operator: Sunset Digital Communications Inc.<br />
Public entity owning the network: LENOWISCO Planning<br />
District Commission<br />
Current/planned FTTP service area: Lee and Wise Counties<br />
in Virginia and parts of northeastern Tennessee<br />
Number of households and businesses in FTTP service<br />
area: 28,000<br />
Number of FTTP subscribers: 900<br />
Competitive landscape: Comcast provides cable broadband<br />
and Verizon provides DSL in some areas, but the<br />
majority of the area is limited to dial-up or satellite.<br />
Network Profile<br />
Miles of fiber backbone: 350 built, 350 leased, with connections<br />
to Ashburn, Va., and Atlanta.<br />
Number of POPs: Sunset Digital offers “corridors of presence”<br />
rather than points of presence. Because it runs<br />
large bundles of extra fibers parallel to its backbone fibers,<br />
Sunset has the capacity to break into the cable at<br />
nearly any point along the backbone and splice a fiber<br />
directly to a customer, minimizing the need to lay fiber.<br />
This unique architecture is what allows Sunset Digital to<br />
economically serve rural households and businesses.<br />
Network architecture: Active Ethernet<br />
Business model: The LENOWISCO Planning District Commission<br />
owns the network. Sunset Digital builds, designs<br />
and manages the LENOWISCO network, which it<br />
leases from LENOWISCO and operates for the benefit<br />
of the community. Sunset Digital sells connectivity (including<br />
virtual private LAN services) directly to customers<br />
seeking private connections; retail Internet access<br />
is provided by a third-party provider, Clariti Media LLC,<br />
which plans to begin offering television and telephone<br />
services soon as part of a triple-play package.<br />
Highest-tier Internet access speeds/cost: 100 Mbps<br />
downstream/2 Mbps upstream for $99 per month. Businesses<br />
have requested up to 10 Gbps service.<br />
Year deployment started: 2001<br />
Year services began: 2001<br />
Years to complete buildout: The buildout has been in<br />
progress for eight years due to ever-expanding plans.<br />
Economic Development Impact<br />
Several business were able to stay or expand within the region<br />
because of broadband, including some home-based<br />
businesses as well as larger ones, such as Crutchfield Electronics.<br />
Other businesses located in the area because of the<br />
broadband network, including OnePartner, an advanced<br />
technology and application center and the only commercial<br />
Tier-III data center in the United States, and Holston Medical<br />
Group (HMG), whose electronic medical records are stored<br />
at OnePartner’s data center. HMG takes advantage of the<br />
data center’s capacity and connectivity to run virtual clinical<br />
trials. In total, the network has attracted an estimated<br />
26 | BROADBAND PROPERTIES | www.broadbandproperties.com | November/December 2009
Municipal FTTH Deployment Snapshot<br />
$50 million in corporate investments in the region<br />
and 1,200 jobs.<br />
Deployment Details<br />
Aerial, underground, or both: Both, mostly<br />
aerial.<br />
Method for underground installation:<br />
Plowed cable and conduit. Conduit uses<br />
Emtelle blown fiber.<br />
Method for connecting fiber: Field fusion<br />
splicing<br />
Splicing equipment: Fitel S175, S177, S122<br />
Operating equipment<br />
Central office electronics: Ciena (previously<br />
World Wide Packets)<br />
Fiber cables: OFS AllWave and EZ-Bend.<br />
Fiber distribution cabinets/other OSP: DDB cabinets<br />
with Clearfield fiber management equipment<br />
Testing equipment: Fitel<br />
Residential gateway: Ciena<br />
Softswitch: MetaSwitch, through telephone partnerships<br />
Network operation<br />
Number of central office personnel: 11<br />
Number of OSP personnel: 32<br />
Number of CSRs: One<br />
Trucks, trailers, other equipment: Eight large bucket<br />
trucks, four bucket vans, one van, two splice trailers and<br />
three reel trailers<br />
Biggest challenge<br />
Most of our competitors were started by large, better-funded<br />
organizations. Sunset was started from scratch with no cash<br />
flow of its own and no investment. Today, it is a self-sustaining<br />
business with no significant debt. This has been our greatest<br />
challenge and perhaps our greatest accomplishment.<br />
Biggest Success<br />
We are still here! We’ve surmounted the difficulties of providing<br />
rural broadband connectivity, including securing funding,<br />
navigating the challenging terrain and winning customers<br />
in an economically depressed area, and we are able to<br />
return more than $150,000 per year to the network owner.<br />
Through a partnership with the LENOWISCO Planning<br />
District Commission, Sunset obtained funding<br />
from the Tobacco Indemnification and Community<br />
Revitalization Program. The purpose of the<br />
program was to redistribute tobacco settlement money<br />
for economic development in areas whose major industry<br />
had once been growing tobacco. LENOWISCO<br />
leaders and Paul Elswick wrote grant applications and<br />
secured money to lay the initial<br />
fiber lines in their district. Sunset<br />
was charged with making it<br />
happen by laying the fiber and<br />
providing Internet service.<br />
After the funding was in<br />
place, Sunset had to lay the fiber.<br />
Using aerial and underground<br />
installation, the technicians at<br />
Sunset have been creative in using<br />
new techniques to bring fiber<br />
to the rural setting of Southwest<br />
Virginia. Obtaining rights<br />
of way was also challenging, but<br />
after we entered into a partnership<br />
with the power company,<br />
trading fiber for its SCADA system<br />
in return for rights of way,<br />
we were able to realize dramatic<br />
cost savings. We are now partnering<br />
with this same company on a smart-grid project.<br />
Some observers have been surprised at how enthusiastically<br />
Appalachian residents have embraced the technology<br />
Sunset has provided. Customers aren’t using broadband<br />
just to surf the Internet; they are using it to better their lives<br />
in this economically depressed area. In a survey of Sunset’s<br />
most recent 271 customers, 29 percent said they used their<br />
new broadband service either for distance learning – to<br />
earn degrees that would make them eligible for better-paying<br />
jobs – or in home-based businesses. These work-fromhome<br />
employees and owners of cottage industries include<br />
an interior designer using broadband to search for design<br />
inspirations, people managing health insurance programs<br />
for a national health insurance company, a person managing<br />
orders for a national floral service over the Internet and<br />
a toolmaker selling wedges for leveling mobile homes. Local<br />
successes, along with large companies and government<br />
entities that have shown interest in the network, have truly<br />
changed the capability of Southwest Virginia to compete<br />
in the world arena. BBP<br />
Contact Masha Zager at masha@broadbandproperties.<br />
com if you would like <strong>Broadband</strong> <strong>Properties</strong> to feature<br />
your municipal fiber deployment.<br />
November/December 2009 | www.broadbandproperties.com | BROADBAND PROPERTIES | 27
The Residences at<br />
Oella Mill, Md.<br />
By Joe Bousquin ■ Contributing Editor,<br />
<strong>Broadband</strong> <strong>Properties</strong><br />
This month, the spotlight is on Oella Mill, a historic rehab on the site of what once was America’s largest textile<br />
mill. Renovated by Southern Management and wired with fiber by Verizon, the deployment represents cutting-edge<br />
technology implemented in a centuries-old setting. Our thanks to Southern’s John Cohan and Verizon’s Glenn Hilley<br />
for their assistance in preparing this article.<br />
Time has never moved quickly in Oella, Md. A tiny hamlet<br />
perched above the Patapsco River, just across the river<br />
from historic Ellicott City and west of Baltimore, the<br />
town has been tied to the textile industry since Colonial times<br />
and didn’t have a modern sewage system until 1984. After<br />
Oella’s historic mill, first built in 1808, shut down for good in<br />
1972, the town languished for nearly three decades.<br />
Recently, the pace of life has picked up considerably. The<br />
village’s quaintness, along with encouragement from community<br />
leaders, sparked new interest in redevelopment. One of<br />
the largest projects has been the Residences at Oella Mill, a<br />
147-unit luxury apartment community in the town’s old mill<br />
building. Undertaken by Southern Management, a Vienna,<br />
Va.–based firm with more than 25,000 units throughout the<br />
mid-Atlantic, the project included a complete overhaul of the<br />
mill, which was last rebuilt in 1918 after a fire destroyed the<br />
original structure.<br />
Amenities include designer kitchens with stainless-steel<br />
appliances, concierge service, a two-level fitness center and<br />
weight room, a billiards room and even a library with Wi-Fi,<br />
printer and fax machine. The building’s exterior was left intact<br />
to put its history on display, but the interior is a model of modern<br />
luxury living, all the way down to the technology inside<br />
the walls. Residents living on a site named for the first woman<br />
to spin cotton in America now enjoy fiber-enabled triple-play<br />
services from Verizon with data speeds up to 50 Mbps, ondemand<br />
video choices and in-unit telephony options. On top<br />
of all that, to ensure that residents get crystal-clear cellular reception<br />
in their units, Verizon Wireless set up a 3G cellular<br />
distributed antenna system within the building.<br />
We talked to Glenn Hilley, Verizon’s manager of network<br />
engineering in the Maryland and Washington, D.C., region,<br />
28 | BROADBAND PROPERTIES | www.broadbandproperties.com | November/December 2009
and John Cohan, Southern Management’s director of marketing,<br />
to find out more about bringing the latest in fiber optic<br />
technology to a building whose foundation was built more<br />
than two centuries ago.<br />
Vital Stats<br />
Greenfield or retrofit? The property underwent a complete renovation.<br />
Verizon approached the property as a greenfield.<br />
Number of residential units: 147<br />
High-rise/mid-rise/garden style? Four-floor mid-rise<br />
Time to deploy? About six weeks<br />
Date service delivery started: December 2007. The building<br />
opened to residents in June 2008.<br />
Technology<br />
Glenn Hilley provided the answers for this section.<br />
How does fiber get to the property? Primarily via aerial poles,<br />
which feed an underground main point of entry into the<br />
building. Getting the fiber down the pole line through oldtown<br />
Ellicott City was a big part of the job for Verizon. A<br />
few of the poles had to be replaced, and additional poles<br />
had to be moved at the property itself to route the fiber to<br />
the building.<br />
How is fiber distributed inside the building? The fiber enters the<br />
building in the basement and then rises through metal conduit<br />
to a series of utility closets on each floor. In each closet,<br />
the fiber terminates at a Tellabs 621 MDU optical network<br />
terminals (ONT), with each unit supplying 16 voice lines,<br />
eight data lines and a video feed.<br />
The ONTs, which are Ethernet enabled, interface with<br />
coaxial and Cat 5 wire drops routed into each apartment<br />
unit. When residents order service, a Verizon technician<br />
energizes the coax and Cat 5 by running a series of crossconnects<br />
from the ports on the ONT to the appropriate<br />
telco and coax cables.<br />
The configuration provides a 100 Mbps Ethernet data,<br />
voice and video connection to each unit.<br />
What is the FTTH technology? BPON<br />
Whose equipment is used? We used electronics from Tellabs and<br />
single-mode fiber optic cable from Corning.<br />
What were the challenges of wiring this property? The property<br />
was completely renovated; Southern Management gutted<br />
the original structure and then built the new apartments<br />
inside the old shell. By the time Verizon partnered on the<br />
project, Southern Management had already completed the<br />
wiring within the units, as well as the home-run wiring to<br />
the utility closets. For that reason, Verizon opted to use the<br />
Tellabs MDU ONTs, which is a little unusual for us. Typi-<br />
Michels leads the industry in turn key construction of<br />
broadband fiber optic communication networks across<br />
the United States.<br />
<br />
<br />
<br />
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<br />
<br />
<br />
<br />
<br />
<br />
<br />
Directional Drilling<br />
Trenching<br />
Plowing<br />
Cable Pulling and Blowing<br />
Manhole and Conduit Construction<br />
Aerial, Buried and Underground Construction<br />
Splicing, Testing and Cutover of Copper, Coax and Fiber Optics<br />
ISP Project Management, Design and Implementation<br />
OSP Design and Project Management<br />
Conduit Design<br />
Surveying, Right-of-Way and Easement Acquisition<br />
Drafting and GIS<br />
Trust Michels.<br />
We won’t leave you hanging.<br />
www.michels.us 920.583.3132 Brownsville, WI<br />
An Equal Opportunity Employer<br />
November/December 2009 | www.broadbandproperties.com | BROADBAND PROPERTIES | 29
cally, when we deploy FiOS, we use a single-family ONT to<br />
get the fiber as close to the end user as possible. But in this<br />
case, that would have meant tearing out some of the drywall<br />
and pulling new fiber drops – we basically would have<br />
had to renovate the renovation. That’s why we went with<br />
the MDU solution here, which works well and provides the<br />
same services that our single-family ONT would.<br />
Have you provided wireless signals within the building? Yes. Residents<br />
who choose FiOS receive a wireless router when service<br />
is enabled, and free Wi-Fi is available in common areas.<br />
In addition, a cellular distributed antenna system provides<br />
3G service to the residents.<br />
How much square footage did you have to dedicate to the network<br />
inside the building? We used a combination of shared and<br />
dedicated closets. In some cases, power and other utilities<br />
took up much of the wall space Verizon needed to install<br />
its gear. When that happened, Southern Management was<br />
very accommodating in providing additional closet space<br />
adjacent to the main utility closets so we could set up our<br />
network. The closets are approximately 6 by 8 feet.<br />
Services<br />
Does the building have triple-play services? Yes<br />
Can residents subscribe to IPTV? FiOS TV service is not IPTV,<br />
though there are IPTV applications with the service –<br />
video on demand, for example. The TV signal is a more<br />
traditional cable application; however, the all-fiber network<br />
is well positioned for IPTV as it becomes a more reliable<br />
source of transmission in the future.<br />
Does the network support IP systems for managing the property?<br />
John Cohan: Southern oversees its internal processes through a<br />
dedicated management system that runs over the fiber network,<br />
and the on-site business office uses the fiber network<br />
for WAN connectivity back to the corporate offices.<br />
Do residents have a choice of service providers? Yes. Comcast is<br />
the incumbent service provider in the area. However, according<br />
to the on-site management team at Oella Mill, the<br />
majority of residents have chosen FiOS service so far.<br />
If residents have an issue or a technical challenge, whom do they<br />
call? Verizon<br />
Business<br />
Who owns the network? Verizon owns the fiber-to-the-premises<br />
network.<br />
Was there a door fee? Door fees/marketing fees are negotiated<br />
between Verizon and the owner based on many factors<br />
associated with the agreement. The fees are proprietary<br />
information.<br />
Are services automatically included in the rent? No.<br />
Who handles billing and collection? Verizon.<br />
How are the services marketed, and by whom? Oella Mill has a<br />
marketing agreement with Verizon, and Verizon works very<br />
closely with Oella’s leasing agents. Verizon FiOS materials<br />
are in the leasing office and a letter from Verizon in Oella’s<br />
welcome kit introduces FiOS services to new residents. The<br />
letter encourages residents to reach out to Julianne Winters,<br />
Verizon’s local marketing account manager. The most<br />
popular Verizon bundle at Oella has been the 25 Mbps<br />
downstream/15 Mbps upstream data service, which comes<br />
with Verizon’s high-definition video offering. A majority of<br />
residents at Oella have HDTVs.<br />
What has the return been on this implementation?<br />
John Cohan: The return has been difficult to quantify, but<br />
Southern’s goal has been to provide luxury apartment<br />
homes in a unique, historic setting without skimping on<br />
modern amenities. Giving residents a choice of fiber optic<br />
data services ensures the community has the technology<br />
30 | BROADBAND PROPERTIES | www.broadbandproperties.com | November/December 2009
amenities residents expect today and into the future. When<br />
we talk to prospective residents, light bulbs go on when we<br />
mention that we have the Verizon FiOS product.<br />
Onsite Experience/Lessons Learned<br />
What was the biggest challenge?<br />
Glenn Hilley: Managing space allocations within the utility<br />
closets between the power company, cable TV company<br />
and Verizon.<br />
Aside from that, the biggest challenge<br />
was getting fiber down the pole<br />
line to the community. The property<br />
is a little way away from old-town Ellicott<br />
City, and we had to do some<br />
pole replacements and relocations to<br />
get the fiber there. The main feeder<br />
cables were on the other side of town,<br />
so we had to string some pretty<br />
lengthy distribution runs to get fiber<br />
to the property.<br />
What was the biggest success?<br />
Glenn Hilley: Despite the short time<br />
frame we had for getting the job done,<br />
we were able to give the property<br />
owner service when it was needed.<br />
When the first customers moved in,<br />
they were able to get FiOS, which is<br />
always a good thing for us.<br />
What would you say to owners who want<br />
to deploy a similar network? What<br />
issues should they consider before they<br />
get started?<br />
Glenn Hilley: Start partnering with your<br />
chosen service provider as early in<br />
the planning phase as possible. This<br />
allows for the greatest flexibility of<br />
designs and maximizes the number<br />
of available options.<br />
Come to us in the planning<br />
stages before construction starts. We<br />
have a lot more options if we can be<br />
involved when owners are still laying<br />
out their raceways and partitions. In<br />
some cases, we can help with how<br />
they’re going to do their wiring in<br />
the building, and maybe save them a<br />
couple of bucks by making sure we’re<br />
all on the same page. Get the process<br />
going as early as possible.<br />
What is the property manager’s perspective<br />
on this installation? Has it been a<br />
success? What has been the response<br />
from residents?<br />
John Cohan: Installation was completed<br />
prior to lease-up and prior to the<br />
property manager’s arrival on site. Since the opening, almost<br />
all residents have chosen Verizon as their provider,<br />
and we’ve received very positive feedback.<br />
Being able to offer these kinds of technology amenities<br />
is critical. Our resident profile at Oella Mill is a fairly young<br />
demographic that is just going to expect that the right amenities<br />
be there. We really sweated the details to make sure<br />
that we provided all the modern amenities residents would<br />
expect, including the technology amenities. BBP<br />
Think Forward. we do.<br />
www.blondertongue.com<br />
(800) 523-6049 ext. 555<br />
November/December 2009 | www.broadbandproperties.com | BROADBAND PROPERTIES | 31
<strong>2010</strong> <strong>Buyers</strong> <strong>Guide</strong><br />
Buying for Ultra-<strong>Broadband</strong><br />
Builds and Services<br />
The best places to buy equipment, software and services for delivering voice,<br />
video, data and more.<br />
Whether you are trying to differentiate a multifamily<br />
property, deliver the benefits of broadband to<br />
unserved or underserved communities, upgrade<br />
obsolete networks with state-of-the-art equipment, increase<br />
revenues by providing advanced services, meet customers’ insatiable<br />
demand for bandwidth or attract new businesses to your<br />
community, you’ll find the products and services you are looking<br />
for in these pages. These vendors can help you plan and<br />
execute your project and introduce you to new products that<br />
make deploying networks and services faster, easier and less<br />
expensive than ever before.<br />
The <strong>2010</strong> <strong>Buyers</strong> <strong>Guide</strong> is for<br />
• property owners and developers<br />
• telecommunications service providers of all kinds<br />
• municipal officials and advisors<br />
• contractors, consultants, integrators and installers<br />
• banks and other capital sources.<br />
To increase bandwidth, broadband providers everywhere are<br />
bringing fiber closer and closer to customers. Fiber-borne Ethernet<br />
technology is making it easier for vendors to mix and match<br />
copper technologies with fiber as well, especially on the side of<br />
the network closest to customers – the first mile.<br />
In the index table, featured suppliers are in boldface. This<br />
guide is also online at www.bbpmag.com. Visit us there. BBP<br />
About the Authors<br />
Staff members participating in the production of this section<br />
included Irene Prescott and Meredith Terrall.<br />
Rural <strong>Broadband</strong><br />
Sessions Announced<br />
Brought to you by the<br />
Rural Telecommunications Congress<br />
The RTC will host a one-day forum at the Summit to develop actionable solutions and<br />
share practical knowledge about how to develop and use broadband for rural prosperity.<br />
“<strong>Broadband</strong> for Rural Prosperity”<br />
• Connecting Rural Leaders<br />
• Organizing for <strong>Broadband</strong><br />
• Sustaining Rural <strong>Broadband</strong><br />
• Rural <strong>Broadband</strong> Policy<br />
For complete details on the RTC one-day form, visit www.bbpmag.com.<br />
April 26 – 28, <strong>2010</strong><br />
InterContinental Hotel –<br />
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The Leading Conference on <strong>Broadband</strong><br />
Technologies and Services<br />
To Exhibit or Sponsor, contact: Irene Prescott at irene@broadbandproperties.com, or call 316-733-9122.<br />
For other inquiries, call 877-588-1649, or visit www.bbpmag.com.<br />
32 | BROADBAND PROPERTIES | www.broadbandproperties.com | November/December 2009
<strong>Buyers</strong><br />
<strong>Guide</strong><br />
Company<br />
<strong>2010</strong> <strong>Buyers</strong> <strong>Guide</strong><br />
Industry Segments<br />
PCO/MDU<br />
FTTx<br />
Wireless<br />
Telcos<br />
Cable TV<br />
Hospitality<br />
Municipality<br />
Products<br />
Outside Plant<br />
Inside Plant<br />
Wireless<br />
Structured Wiring<br />
Opto-Electronics<br />
Network Service/Programming<br />
Software<br />
Design/Construction<br />
Test Equipment<br />
Headends<br />
A ‘n D Cable Products Inc. 3 3 3 3 3 3 3 3 3 3<br />
ADC Telecommunications 3 3 3 3 3 3 3 3 3 3 3 3 3 3<br />
Advanced Media Technologies 3 3 3 3 3 3 3 3 3 3<br />
Aeroflex 3 3<br />
AFL Telecommunications 3 3 3 3 3 3 3 3 3 3 3 3 3 3<br />
Aidi USA 3 3 3 3 3 3 3<br />
Alcatel-Lucent 3 3 3 3 3 3 3 3 3<br />
Alliance Fiber Optics 3 3 3 3 3 3 3 3<br />
Alpha Technologies 3 3 3 3 3 3 3 3 3<br />
Anritsu 3 3 3 3 3 3 3 3 3 3 3<br />
Antronix 3 3 3 3 3 3 3 3 3 3<br />
Artel Video Systems 3 3 3 3 3 3<br />
AT&T Connected Communities 3 3 3 3 3<br />
ATX Networks 3 3 3 3 3 3 3 3 3<br />
BH Communications 3 3 3 3 3 3 3 3 3 3<br />
Blonder Tongue 3 3 3 3 3 3 3 3 3 3 3<br />
C9 Networks Inc. 3 3 3 3 3 3 3 3<br />
Calix 3 3 3 3 3 3 3<br />
Charles Industries, Ltd. 3 3 3 3 3 3 3<br />
Clearfield 3 3 3 3 3 3<br />
Connexion Technologies 3 3<br />
Corning Cable Systems 3 3 3 3 3 3 3 3 3 3<br />
CSI Digital 3 3 3 3 3 3<br />
DIRECTV 3 3<br />
Display Systems International 3 3 3 3 3 3<br />
Fiberdyne Labs 3 3 3 3 3 3 3 3 3 3 3 3<br />
Fiopt Communication Services Ltd. 3 3 3 3 3 3 3<br />
Four Points <strong>Broadband</strong> 3 3 3 3 3 3 3 3 3 3<br />
General Machine Products 3 3 3 3 3 3 3 3 3<br />
Great Lakes Data Systems 3 3 3 3 3 3 3<br />
JDSU 3 3 3 3 3 3<br />
Michels Corporation 3 3 3 3 3<br />
Multicom 3 3 3 3 3 3 3 3 3 3 3 3<br />
Multilink 3 3 3 3 3 3 3 3 3<br />
OFS 3 3 3 3 3 3 3 3 3 3 3<br />
Optelian 3 3 3 3 3 3 3 3 3 3<br />
Pace International 3 3 3 3 3 3 3 3 3 3 3<br />
Power & Tel 3 3 3 3 3 3 3 3 3 3 3 3 3<br />
Quanta Services 3 3 3 3 3 3 3 3 3 3 3<br />
Seikoh Giken USA 3 3 3 3 3 3<br />
Spot On Networks 3 3 3 3 3 3<br />
Sumitomo Electric Lightwave 3 3 3 3 3 3 3 3 3 3<br />
Telco Systems 3 3 3 3 3 3 3 3<br />
Telkonet 3 3 3 3<br />
TESSCO Technologies 3 3 3 3 3 3 3 3<br />
The Light Brigade 3 3 3 3 3 3 3 3 3 3 3 3<br />
Toner Cable Equipment 3 3 3 3 3 3 3 3 3 3 3<br />
Verizon Enhanced Communities 3 3<br />
November/December 2009 | www.broadbandproperties.com | BROADBAND PROPERTIES | 33
<strong>2010</strong> <strong>Buyers</strong> <strong>Guide</strong><br />
A ‘n D Cable Products<br />
1460 Washington Blvd., Ste. A-102<br />
Concord, CA 94521<br />
P: 800-394-3008<br />
F: 925-672-0317<br />
Contact: Conrad Chompff<br />
Email: sales@andcable.com<br />
www.andcable.com<br />
Industry segments: PCO/MDU, FTTx, Wireless, Telcos,<br />
Cable TV, Hospitality, Municipality<br />
Products: Outside Plant, Inside Plant, Structured Wiring<br />
Established in 1989, A ’n D offers cable management products;<br />
copper Cat 5E, Cat 6 and Cat 6A cables; shielded cables; coaxial<br />
cables; preterminated fiber cables; and fiber trunk cables. We<br />
have developed a quick and easy cable-labeling system called<br />
Unitag, a space-saving equipment rack bracket called RackOrganizer<br />
and labor-saving custom Velcro Brand straps.<br />
ADC Telecommunications<br />
13625 Technology Drive<br />
Eden Prairie, MN 55344<br />
P: 800-366-3889<br />
F: 952-917-1717<br />
Contact: Chad Engel<br />
Email: chad.engel@adc.com<br />
www.adc.com<br />
Industry segments:<br />
PCO/MDU, FTTx,<br />
Wireless, Telcos,<br />
Cable TV, Hospitality,<br />
Municipality<br />
Products: Outside<br />
Plant, Inside Plant, Wireless, Structured Wiring, Network<br />
Services/Programming, Design/Construction, Headends<br />
ADC provides the connections for wireline, wireless, cable,<br />
broadcast and enterprise networks around the world. ADC’s<br />
innovative network infrastructure equipment and professional<br />
services enable high-speed Internet, data, video and voice services<br />
to residential, business and mobile subscribers. ADC has<br />
sales into more than 130 countries. Learn more about ADC at<br />
www.adc.com.<br />
Advanced Media Technologies, Inc.<br />
3150 SW 15 th St.<br />
Deerfield Beach, FL 33442<br />
P: 954-427-5711<br />
F: 954-427-9688<br />
Contact: Rob Narzisi<br />
Email: rnarzisi@amt.com<br />
www.amt.com<br />
Industry segments: PCO/MDU, FTTx, Telcos, Cable TV,<br />
Hospitality, Municipality<br />
Products: Outside Plant, Test Equipment,<br />
Opto-Electronics, Headends<br />
Advanced Media Technologies<br />
(AMT) is the performance<br />
leader among CATV<br />
and broadband electronic<br />
equipment providers. As a<br />
value-added reseller of highperformance<br />
products from many well-known manufacturers,<br />
AMT targets emerging technology applications in broadband<br />
with a complete line of products for CATV, IPTV, and FTTH.<br />
In addition to providing expert in-house technical support for<br />
RF and IP video distribution systems to cable TV companies<br />
nationwide, AMT systems integration provides turnkey solutions<br />
for digital TV headends, CMTS and VoIP deployment,<br />
as well as design and on-site technical support.<br />
AMT’s complete portfolio of broadband equipment includes<br />
products from Motorola, Amino, Blonder Tongue,<br />
Pacific <strong>Broadband</strong> Networks, EGT, RGB Networks, Adtec,<br />
Drake, Olson Technology, Hitachi and Emcore.<br />
AMT specializes in prebuilt headends ranging from small<br />
DSS systems to fully digital high-definition headends.<br />
Aeroflex<br />
35 South Service Rd.<br />
Plainview, NY 11803-0622<br />
P: 800-835-2352<br />
F: 516-694-2562<br />
Email: info-test@aeroflex.com<br />
www.aeroflex.com<br />
Industry segments: Wireless<br />
Products: Test Equipment<br />
Aeroflex Incorporated is a multifaceted high-technology company<br />
that designs, develops, manufactures and markets microelectronic<br />
and test and measurement products. Our products<br />
are in worldwide use supporting communication systems, networks<br />
and automatic test systems. We have products that support<br />
avionics, broadband, radio test sets, spectrum analyzers,<br />
PXI, LTE and frequency synthesizers.<br />
AFL Telecommunications<br />
170 Ridgeview Center Drive<br />
Duncan, SC 29334<br />
P: 800-235-3423<br />
Email: info@afltele.com<br />
www.afltele.com<br />
Industry segments: PCO/MDU, FTTx, Wireless, Telcos,<br />
Cable TV, Hospitality, Municipality<br />
Products: Outside Plant, Inside Plant, Wireless, Structured<br />
Wiring, Test Equipment, Network Services/Programming,<br />
Design/Construction<br />
AFL Telecommunications, headquartered in Spartanburg, S.C.,<br />
offers fiber optic products, engineering expertise, integrated services<br />
and content solutions for voice, video and data networks.<br />
34 | BROADBAND PROPERTIES | www.broadbandproperties.com | November/December 2009
<strong>2010</strong> <strong>Buyers</strong> <strong>Guide</strong><br />
For the FTTH market, AFL offers an “FTTH Made Easy”<br />
program that consists of end-to-end system integration including<br />
best-in-class FTTH and wireless platforms. Our product<br />
portfolio includes PON and point-to-point electronics, RF and<br />
IP video solutions, bandwidth management and FTTx business<br />
modeling capabilities. AFL offers products that include<br />
fiber management systems, optical splitters and wave-division<br />
multiplexers, closures, NIDs, demarcation devices and fiber<br />
optic cable as well as fiber fusion splicers, test equipment and<br />
related accessories.<br />
As a DIRECTV master system operator, AFL is authorized<br />
to establish system operators and provide access to DIRECTV’s<br />
programming and services. AFL’s expertise includes system<br />
integration of both MFH-2 and MFH-3 solutions. For more<br />
information, visit www.afltele.com or contact Kent Brown at<br />
kent.brown@afltele.com or 864-433-8072.<br />
AiDi USA<br />
1250 45 th St., Ste. 355<br />
Emeryville, CA 94608<br />
P: 510-653-2500<br />
F: 415-869-5377<br />
Contact: Pat Chou, VP Sales & Marketing<br />
Email: pat.chou@aidicorp.com<br />
www.aidicorp.com<br />
Industry segments: FTTx, Telcos, Cable TV<br />
Products: Outside Plant, Inside Plant, Opto-Electronics,<br />
Headends<br />
AiDi Corporation is a global company that offers innovative,<br />
high-value fiber optic products and services for FTTH,<br />
metro and long-haul telecommunications. AiDi offers volumemanufactured<br />
products and packaging services that require exceptional<br />
durability and lifetime in the field. The company is<br />
privately held, founded by industry pioneers with several U.S.<br />
and international patents pending. AiDi is headquartered in<br />
Japan with independent operating subsidiaries in China and<br />
the United States.<br />
Alcatel-Lucent<br />
2301 Sugar Bush Road<br />
Raleigh, NC 27612<br />
P: 919-850-6191<br />
Contact: Bhavani Rao<br />
Email: Bhavani.rao@alcatel-lucent.com<br />
www.alcatel-lucent.com/ftth<br />
Industry segments: PCO/MDU, FTTx, Wireless, Telcos,<br />
Cable TV, Hospitality, Municipality<br />
Products: Opto-Electronics, Software<br />
Alcatel-Lucent is a global leader in broadband access, with cutting-edge<br />
GPON and DSL solutions. The company is engaged<br />
in more than 95 FTTx projects around the world, more than<br />
80 of which involve GPON. Alcatel-Lucent has extended this<br />
leadership by developing and driving the adoption of standards<br />
through the Full Service Access Network and is one of the few<br />
vendors to offer a comprehensive end-to-end triple-play solution<br />
consisting of core routers, gateways and softswitches, integrated<br />
and rigorously tested in a multimillion-dollar center.<br />
Alliance Fiber Optic Products<br />
275 Gibraltar Drive<br />
Sunnyvale, CA 94089<br />
P: 408-736-6900<br />
F: 408-736-4882<br />
Contact: Helen Chan<br />
Email: hchan@afop.com<br />
www.afop.com<br />
Industry segments: FTTx, Telcos, Cable TV<br />
Products: Outside Plant, Wireless, Test Equipment, Opto-<br />
Electronics, Network Services/Programming<br />
Alliance Fiber Optic Products (AFOP) designs, manufactures<br />
and markets high-performance fiber optic components and<br />
integrated modules. These include passive optical components<br />
such as interconnect systems, couplers and splitters; thin-film<br />
CWDM and DWDM components and modules; fixed and<br />
variable optical attenuators; and integrated subsystems.<br />
Based in Sunnyvale, Calif., the company serves communications<br />
equipment manufacturers that deliver optical networking<br />
systems to all three segments of the communications network:<br />
long-haul, metropolitan and first-mile access. AFOP was<br />
founded in 1995, has 800 employees and maintains manufacturing<br />
and product development facilities in the United States,<br />
Taiwan, and China.<br />
Alpha Technologies<br />
3767 Alpha Way<br />
Bellingham, WA 98226<br />
P: 360-647-2360<br />
F: 360-671-4936<br />
Contact: Nadia Boulos<br />
Email: nboulos@alpha.com<br />
www.alpha.com<br />
Industry segments: PCO/MDU, FTTx, Wireless,<br />
Cable TV, Municipality<br />
Products: Outside Plant, Wireless, Test Equipment, Headends<br />
Alpha Technologies Inc. develops<br />
power conversion, protection<br />
and standby products<br />
for telecommunications and<br />
broadband cable industries,<br />
including custom, application-specific<br />
power solutions.<br />
Alpha Technologies offers<br />
a complete portfolio of fiber-to-the-home powering options<br />
with the FlexPoint line of 12Vdc single-family (SFU) solutions<br />
and the FlexNet line of 48Vdc multiple-dwelling (MDU)<br />
and small-office, home-office (SOHO) power supplies. Alpha<br />
also offers solutions to simplify RFoG deployment, such as the<br />
Integrated Fiber Enclosure (IFE). All Alpha’s powering solutions<br />
are engineered to ensure reliability in the most demanding<br />
environmental conditions while optimizing battery life<br />
November/December 2009 | www.broadbandproperties.com | BROADBAND PROPERTIES | 35
<strong>2010</strong> <strong>Buyers</strong> <strong>Guide</strong><br />
and performance. In addition to product development, Alpha<br />
Technologies provides installation and maintenance services to<br />
support its global customer base. For additional information,<br />
call 800-322-5742 or go to www.alpha.com.<br />
passives, amplifiers, grounding hardware and more. Most are<br />
available with patented CamPort auto-seizing F-connector<br />
technology with over 2,000 grams of pull force. Taps include<br />
E-Option, plug-in modules for integral signal conditioning.<br />
Anritsu<br />
1155 E. Collins Blvd., Ste. #100<br />
Richardson, TX 75081<br />
P: 972-644-1777<br />
F: 972-671-1877<br />
Contact: Laura Edwards<br />
Email: laura.edwards@anritsu.com<br />
www.us.anritsu.com<br />
Industry segments: PCO/MDU, FTTx, Wireless, Telcos,<br />
Cable TV, Municipality<br />
Products: Outside Plant, Inside Plant, Wireless, Test<br />
Equipment, Design/Construction<br />
Anritsu Co. is the<br />
American subsidiary of<br />
Anritsu Corporation, a<br />
global provider of innovative<br />
communications<br />
test and measurement<br />
solutions for more than<br />
110 years. Anritsu provides<br />
solutions for existing<br />
and next-generation wired and wireless communication<br />
systems and operators. Anritsu products include wireless, optical,<br />
microwave/RF and digital instruments as well as operations<br />
support systems for R&D, manufacturing, installation<br />
and maintenance. Anritsu also provides precision microwave/<br />
RF components, optical devices and high-speed electrical devices<br />
for communication products and systems. With offices<br />
throughout the world and approximately 4,000 employees,<br />
Anritsu sells in more than 90 countries.<br />
Antronix<br />
440 Forsgate Drive<br />
Cranbury, NJ 08512<br />
P: 609-860-0160<br />
F: 609-860-1687<br />
Contact: Mike Horowitz<br />
Email: mikehorowitz@antronix.net<br />
www.antronix.net<br />
Industry segments: PCO/MDU, FTTx, Wireless, Telcos,<br />
Cable TV, Hospitality, Municipality<br />
Products: Outside Plant, Inside Plant, Opto-Electronics<br />
Antronix is the market leader in providing active and passive<br />
devices to the broadband industry. Recent introductions include<br />
a line of integrated VoIP amplifiers and a family of devices<br />
aimed at enabling MoCA in the home. Featured are fiber<br />
nodes, retrofit taps that enable upgrades without resplicing and<br />
a selection of splitters for use in NID boxes. Also available is an<br />
extensive product lineup that includes line passives, subscriber<br />
Artel Video Systems<br />
330 Codman Hill Road<br />
Boxborough, MA 01719<br />
P: 978-263-5775<br />
F: 978-263-9755<br />
Contact: Lois Wisman<br />
Email: lwisman@artel.com<br />
www.artel.com<br />
Industry segments: Telcos, Cable TV, Municipality<br />
Products: Test Equipment, Opto-Electronics, Headends<br />
Artel Video Systems develops, manufactures and markets highperformance,<br />
broadcast-quality video transport hardware. For<br />
more than 25 years, video service providers, telecommunication<br />
companies, cable TV operators and broadcasters have<br />
deployed Artel products in their most critical video transport<br />
applications.<br />
Artel’s product lines include the DV6000 digital video network<br />
platform, DigiLink single-channel fiber transport and<br />
the DL4000 multi-channel video transport platform. Artel<br />
platforms provide reliable, error-free transport of all standard<br />
video formats, including 3G-SDI, HD-SDI, SD-SDI, DVB-<br />
ASI, ATSC and NTSC or PAL analog formats.<br />
AT&T Connected Communities<br />
2180 Lake Blvd., 11A57<br />
Atlanta, GA 30319<br />
P: 404-829-8895<br />
Contact: Thuy Woodall<br />
Email: tw5598@att.com<br />
www.att.com/communities<br />
Industry segments: Wireless,<br />
Telcos, Cable TV,<br />
Products: Wireless,<br />
Structured Wiring<br />
Delivering the Latest in Telecommunications and Entertainment<br />
Solutions. As a leading global provider of advanced communications<br />
services, AT&T, through its dedicated AT&T Connected<br />
Communities organization, works closely with apartment<br />
management and ownership groups, single-family builders<br />
and developers to serve customer needs with the latest services<br />
available. To learn more, visit www.att.com/communities.<br />
ATX Networks<br />
1-501 Clements Road West<br />
Ajax, ON, Canada LIS 7H4<br />
P: 905-428-6068<br />
F: 905-427-1964<br />
36 | BROADBAND PROPERTIES | www.broadbandproperties.com | November/December 2009
<strong>2010</strong> <strong>Buyers</strong> <strong>Guide</strong><br />
Contact: Ben Newell, Director of Sales<br />
Email: support@atxnetworks.com<br />
www.atxnetworks.com<br />
Industry segments: PCO/MDU, Telcos, Cable TV,<br />
Hospitality, Municipality<br />
Products: Outside Plant, Inside Plant, Opto-Electronics,<br />
Headends<br />
ATX Networks is a global manufacturer of cable television<br />
products from the headend to the home, including RF filters,<br />
signal-management equipment (RF, L-Band, optical), headend<br />
and MDU amplifiers, transmitters and receivers, fiber nodes<br />
and upgrades, amplifier upgrades, pads/EQs, drop amps,<br />
digital voice switches, audio and video deletion and insertion,<br />
monitor and control equipment and test-signal generators.<br />
Products: Outside Plant, Structured Wiring,<br />
Test Equipment, Opto-Electronics, Software, Headends<br />
BH Communications specializes in low-cost pay-TV control<br />
systems for MDUs, hotels, hospitals, universities and prisons.<br />
We have more than 20 years of experience in off-premises addressability<br />
for the CATV industry. CableSoft, our addressable<br />
control software, provides remote monitoring and control of all<br />
CATV projects from any location, using TCP/IP or telephone<br />
modems. We offer connect-disconnect and multi-tier remote<br />
control of CATV services at unbeatable prices. We carry both<br />
new and refurbished addressable gear from Electroline. BH<br />
Communications also provides new and refurbished headend<br />
equipment, line extenders, amplifiers, distribution passives and<br />
test equipment.<br />
BH Communications<br />
29 Greenfield St.<br />
Montreal, QC, Canada H9G2J9<br />
P: 514-696-6820<br />
F: 514-696-6820<br />
Contact: Mitch Goldberg<br />
Email: mitch@bh-communications.com<br />
www.bh-communications.com<br />
Industry segments: PCO/MDU, FTTx, Cable TV,<br />
Hospitality, Hospital, Health Care<br />
AMT 26966 <strong>Broadband</strong>_Ad_MECH:AMT 26966 10/30/09 2:58 PM Page 1<br />
Blonder Tongue<br />
One Jake Brown Road<br />
Old Bridge, NJ 08857<br />
P: 732-679-4000<br />
F: 732-679-1886<br />
Email: information@blondertongue.com<br />
www.blondertongue.com<br />
Industry segments: PCO/MDU, FTTx, Telcos, Cable TV,<br />
Hospitality, Municipality<br />
Stocking<br />
Distributor for:<br />
Fiber Equipment<br />
at the speed of light.<br />
AMT is your source for:<br />
1310 Transmitters<br />
1550 Transmitters<br />
EDFA’s<br />
RFoG Micronodes<br />
1310/1550 Receivers<br />
Couplers & Jumpers<br />
System Types:<br />
RFoG<br />
PON<br />
HFC<br />
L-Band<br />
Digital Video<br />
Ethernet<br />
Multiple Solutions. One Source.<br />
®<br />
3150 SW 15th Street | Deerfield Beach, FL 33442 | 888.293.5856 | 954.427.5711 | sales@amt.com www.amt.com<br />
November/December 2009 | www.broadbandproperties.com | BROADBAND PROPERTIES | 37
<strong>2010</strong> <strong>Buyers</strong> <strong>Guide</strong><br />
Products: Structured<br />
Wiring, Test Equipment,<br />
Opto-Electronics, Design/<br />
Construction, Headends<br />
Blonder Tongue Laboratories<br />
is a highly recognized technology-development<br />
company<br />
delivering solutions for digital<br />
encoding (HD, SD, IP), digital<br />
transport and broadband.<br />
Founded nearly 60 years ago and rooted in the television distribution<br />
industry, the company serves markets and businesses<br />
that include government, hospitality, sports and entertainment,<br />
airports, broadcasting/movie studios and education.<br />
C9 Networks<br />
341 Cobalt Way, Ste. 205<br />
Sunnyvale, CA 94085<br />
P: 408-746-0400<br />
F: 408-730-9441<br />
Contact: Letitia Huang<br />
Email: letitia@c9networks.com<br />
www.c9networks.com<br />
Industry segments: PCO/MDU, Wireless, Cable TV,<br />
Hospitality, Municipality<br />
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Products: Network Services/Programming, Software,<br />
Headends<br />
C9 Networks provides low-cost, user-friendly CMTS for data,<br />
voice and video over IP for cable, MDU and hospitality operators<br />
with DOCSIS 1.0, 2.0 and 3.0 CMTS solutions. In addition<br />
to the standard mini-CMTS with one downstream, C9<br />
also offers CMTS with two or four downstreams; the model<br />
C4000 series provides bandwidth up to 160 Mbps using standard<br />
1.1 and 2.0 modems for video over IP. This solution is<br />
more cost-effective for IP video and IPTV than DOCSIS 3.0.<br />
The CMTS servers (DHCP/TFTP/TOD), subscriber-provisioning<br />
software and RF plant-monitoring tools are all integrated<br />
into the CMTS to provide a single-box solution.<br />
Calix<br />
1035 North McDowell Rd.<br />
Petaluma, CA 94954<br />
P: 707-766-3000<br />
F: 707-283-3100<br />
Contact: David Russell<br />
Email: dave.russell@calix.com<br />
www.calix.com<br />
Industry segments:<br />
PCO/MDU, FTTx,<br />
Telcos, Cable TV,<br />
Hospitality,<br />
Municipality<br />
Products: Opto-Electronics<br />
Calix is the world’s largest equipment supplier focused solely<br />
on access and is North America’s most widely deployed fiberto-the-premises<br />
solutions provider. The Calix Unified Access<br />
Infrastructure allows providers to deploy any service over any<br />
media type and protocol via form factors that fit their deployment<br />
needs. The company has equipped many rural systems<br />
and pioneered long-range OLTs.<br />
The Calix C7 multiservice access platform enables the<br />
deployment of legacy and advanced broadband services, including<br />
GPON. Its E-Series includes Ethernet platforms for<br />
delivering copper- and fiber-based services, including the new<br />
revolutionary E7 Ethernet platform supporting both GPON<br />
and active Ethernet, and its P-Series offers a broad portfolio of<br />
optical network terminals for residential, business and MDU<br />
deployments. All Calix products are managed by the Calix<br />
Management System, which provides a single network view<br />
and advanced management capabilities across an entire unified<br />
access infrastructure.<br />
Founded in 1999, Calix is headquartered in Petaluma,<br />
Calif., with offices in Boston and Minneapolis.<br />
Charles Industries Ltd.<br />
5600 Apollo Drive<br />
Rolling Meadows, IL 60008<br />
P: 847-806-6300<br />
F: 847-806-6231<br />
38 | BROADBAND PROPERTIES | www.broadbandproperties.com | November/December 2009
<strong>2010</strong> <strong>Buyers</strong> <strong>Guide</strong><br />
Contact: J. T. Charles<br />
Email: mktserv@charlesindustries.com<br />
www.charlesindustries.com<br />
Industry segments: PCO/MDU, FTTx, Wireless, Telcos,<br />
Cable TV, Municipality<br />
Products: Outside Plant<br />
Charles Industries<br />
supplies telecommunications,<br />
ATV<br />
and utilities markets<br />
with a line<br />
of outside-plant<br />
environmenta l-<br />
protection solutions<br />
for fiber,<br />
copper and wireless<br />
applications. Charles Fiber Distribution Points (CFDP),<br />
Pedlock Pedestals, Fiber Flexibility Pedestals (CFFP), Fiber<br />
Cross-Connects (CFXC), CATV/<strong>Broadband</strong> Pedestals and<br />
Multi-Purpose Housings (CMPH) lead the industry in performance<br />
and value for nonmetallic buried distribution enclosures.<br />
Charles Universal <strong>Broadband</strong> Enclosures (CUBE)<br />
are customizable metallic cabinets for housing optical and<br />
electronic equipment at cell sites, strip malls, business parks,<br />
MDUs and other remote outdoor applications. Founded in<br />
1968, Charles is an ISO 9000- and TL 9000-registered company,<br />
with U.S.-based manufacturing facilities.<br />
Clearfield<br />
5480 Nathan Lane<br />
Plymouth, MN 55442<br />
P: 763-476-6866<br />
F: 763-475-8457<br />
Contact: Nikki Moen<br />
Email: nmoen@clfd.net<br />
www.clearfieldconnection.com<br />
Industry segments: FTTx, Telcos, Cable TV<br />
Products: Outside Plant, Inside Plant, Headends<br />
Clearfield designs and manufactures the WaveSmart Platform<br />
of powered optical signal products, including the WaveSmart<br />
PowerNode 1550 EDFA and the FieldSmart Fiber Management<br />
Platform, which includes its latest-generation FieldSmart<br />
Fiber Distribution System (FxDS), FieldSmart Fiber Scalability<br />
Center (FSC) and FieldSmart Fiber Delivery Point (FDP)<br />
series. The FxDS, FSC and FDP product lines support multiple<br />
panel configurations, densities, connectors and adapter<br />
options, and are offered alongside an assortment of passive optical<br />
components. Clearfield provides a complete line of fiber<br />
and copper assemblies for inside plant, outside plant and access<br />
networks. Clearfield is a public company.<br />
November/December 2009 | www.broadbandproperties.com | BROADBAND PROPERTIES | 39
<strong>2010</strong> <strong>Buyers</strong> <strong>Guide</strong><br />
Connexion Technologies<br />
111 Corning Rd., Ste. 250<br />
Cary, NC 27518<br />
P: 919-535-7342<br />
F: 919-882-9338<br />
Contact: Susan Knowles<br />
Email: susan.knowles@cnxntech.com<br />
www.cnxn.com<br />
Industry segments: PCO/MDU, FTTx<br />
Connexion Technologies customizes and manages state-ofthe-art<br />
communications networks in single-family, multifamily,<br />
high-rise, resort and hospitality properties nationwide. Its<br />
award-winning networks optimize the communication experience<br />
and value of properties for residents and property owners,<br />
creating A Better Connection. Connexion Technologies is<br />
not a service provider; rather, it selects and manages a portfolio<br />
of providers that offer entertainment and communication<br />
applications, including the best in enhanced television, telephone,<br />
Internet and other services over Connexion’s providerneutral<br />
networks. The company is based in Cary, N.C. It was<br />
established in 2002 and serves properties in 28 states. Visit<br />
www.connexiontechnologies.net.<br />
Corning Cable Systems<br />
800 17 th Street NW<br />
Hickory, NC 28601<br />
P: 800-743-2671<br />
F: 828-901-5488<br />
Contact: Stephanie Kosty<br />
Email: stephanie.kosty@corning.com<br />
www.corning.com/cablesystems<br />
Industry segments: PCO/MDU, FTTx, Wireless, Telcos,<br />
Cable TV<br />
Products: Outisde Plant, Inside Plant, Wireless,<br />
Test Equipment, Design/Construction<br />
Corning Incorporated developed the first optical fiber for communications<br />
in 1970 and remains a world leader in specialty<br />
glass and ceramics, creating and manufacturing keystone components<br />
that enable high-technology systems. Corning Cable<br />
Systems develops and manufactures optical cable, hardware and<br />
equipment designed to make fiber-to-the-x (FTTx) deployments<br />
faster, easier, more reliable and more efficient. In 2007, Corning<br />
introduced its innovative ClearCurve product suite, based<br />
on bend-insensitive optical fiber. ClearCurve solved historical<br />
technical challenges for telecommunications carriers installing<br />
fiber-to-the-home networks in multidwelling units and other<br />
complicated deployments, and Corning continues to expand the<br />
product suite with technological innovations.<br />
Corning Cable Systems Evolant Solutions for Carrier Networks<br />
deliver tip-to-tip product and service offerings for FTTx,<br />
CATV and wireless applications, with preconnectorized solutions<br />
revolutionizing the way FTTx networks are deployed.<br />
Whatever your network needs, Corning has the solution.<br />
CSI Digital<br />
921 SW Washington Street, Suite 470<br />
Portland, OR 97205<br />
P: 503-715-2525<br />
F: 503-274-7719<br />
Contact: Lloyd de Bruin<br />
Email: info@csidigital.net<br />
www.csidigital.net<br />
Industry segments: PCO/MDU, Telcos, Cable TV,<br />
Hospitality, Municipality<br />
Products: Headends<br />
CSI Digital offers turnkey IPTV solutions to telecommunications<br />
and cable providers. Its unique solutions enable telecommunications<br />
companies to enter the video market or expand<br />
their existing video service offerings. CSI Digital’s cable solution<br />
enables cable operators to free up bandwidth and expand their<br />
program offerings while offering all the features and functionality<br />
of IPTV. Currently CSI Digital’s solutions are deployed in<br />
locations from New York to Guam, either via satellite or terrestrially<br />
over fiber from our headend. For more information, call 503-<br />
715-2525, visit www.csidigital.net or e-mail info@csidigital.net.<br />
DIRECTV<br />
2230 East Imperial Hwy<br />
El Segundo, CA 90245<br />
P: 310-964-0530<br />
Contact: Tony Schaffer<br />
Email: atshaffer@directv.com<br />
www.directv.com/MDU<br />
Industry segments: PCO/MDU<br />
Products: Headends<br />
DIRECTV, the nation’s number one satellite television service,<br />
presents the finest television experience available to more than<br />
18.4 million customers in the United States and is leading the<br />
high-definition revolution with more than 130 HD channels –<br />
more quality HD channels than any other television provider.<br />
Each day, DIRECTV subscribers enjoy access to more than 265<br />
channels of 100-percent digital picture and sound, exclusive programming,<br />
industry-leading customer satisfaction (which has<br />
surpassed all national cable companies for nine years running)<br />
and superior technologies that include advanced DVR and HD-<br />
DVR services and the most state-of-the-art interactive sports<br />
packages available anywhere. For the most up-to-date information<br />
on DIRECTV, please visit www.directv.com.<br />
Display Systems International<br />
2214 Hanselman Ave.<br />
Saskatoon, SK, Canada S7L 6A4<br />
P: 877-934-6884<br />
F: 306-934-6447<br />
Contact: Whitney Lemke<br />
Email: Whitney@displaysystemsintl.com<br />
www.displaysystemsintl.com<br />
40 | BROADBAND PROPERTIES | www.broadbandproperties.com | November/December 2009
<strong>2010</strong> <strong>Buyers</strong> <strong>Guide</strong><br />
Industry segments: PCO/MDU, Telcos, Cable TV,<br />
Hospitality, Municipality<br />
Products: Headends<br />
Especially popular with gated communities, multiple-dwelling<br />
units and private cable, DSI offers an inexpensive and professional<br />
way to display advertising, real estate, community bulletin<br />
boards and tenant information on a local cable channel.<br />
Our software can also be used in schools, restaurants, shopping<br />
units, timeshares, museums, hotels and hospitals to display announcements,<br />
menus, retail specials and guest information.<br />
Also offered by DSI is LineUp, an inexpensive electronic<br />
programming guide that allows the display of an on-screen<br />
scrolling guide of current TV listings. LineUp gives customers<br />
complete control of the look, logos, fonts, colors and information<br />
displayed. Web listings have recently become available to<br />
LineUp customers, giving subscribers access to an interactive<br />
Web site where they can view channels for hours ahead. DSI<br />
now provides programming data to set-top boxes and passive<br />
guides. The data can be delivered with or without notes, ratings<br />
and other custom features in a format selected by the customer.<br />
Fiberdyne Labs<br />
127 Business Park Drive<br />
Frankfort, NY 13340<br />
P: 800-894-9694<br />
F: 315-895-8436<br />
Contact: Peter Polus<br />
Email: sales@fiberdyne.com<br />
www.fiberdyne.com<br />
Industry segments: PCO/MDU, FTTx, Wireless, Cable TV,<br />
Municipality<br />
Products: Outside Plant, Inside Plant, Wireless, Structured<br />
Wiring, Test Equipment, Opto-Electronics, Network<br />
Services/Programming<br />
Fiberdyne Labs is a worldwide supplier of high-quality fiber<br />
optic products, including termination boxes, preterminated<br />
backbone cable, bulk cable, jumper cables and patch cords,<br />
FTTH drop cables, CATV node entrance cables with bendinsensitive<br />
fiber, WDM, CWDM and DWDM passive modules,<br />
fiber splitters, attenuators, Ethernet media converters,<br />
switches, Gigabit multiplex systems, SFPs, GBICs, CAT 5e,<br />
Cat 6 patch cords and more. Fiberdyne Labs also offers nationwide<br />
fiber characterization services.<br />
Fiopt Communication Services Ltd.<br />
708 24 Ave NW<br />
Calgary, AB, Canada T2M 1X7<br />
P: 403-452-9372<br />
F: 403-206-7605<br />
Contact: Bryan McIver<br />
Email: bryan@fiopt.com<br />
www.fiopt.com<br />
Industry segments: FTTx, Telcos, Cable TV, Municipality<br />
Products: Outside Plant, Inside Plant, Design/Construction<br />
Based in Calgary, Alberta, Fiopt Communication Services is a<br />
network planning, design and consulting firm specializing in<br />
fiber-to-the-x (FTTx) networks. With services that enable clients<br />
to move their projects from the drawing board to the field,<br />
Fiopt helps owners realize their plans for deploying the next<br />
generation of local access telecom networks. From feasibility<br />
studies and network strategy to design and construction management,<br />
Fiopt simplifies the process of deploying FTTx.<br />
Four Points <strong>Broadband</strong><br />
11880 Pigeon Ave.<br />
Montreal, Canada H1G5W6<br />
P: 514-543-3017<br />
F: 514-696-6820<br />
Contact: John Ortu<br />
Email: john@fourpointsbroadband.com<br />
www.fourpointsbroadband.com<br />
Industry segments: PCO/MDU, FTTx, Cable TV,<br />
Hospitality, Hospital, Health Care<br />
Products: Outside Plant, Inside Plant, Structured Wiring,<br />
Test Equipment, Opto-Electronics, Headends<br />
Four Points <strong>Broadband</strong> provides products and solutions for<br />
HFC networks that include:<br />
• Pacific <strong>Broadband</strong> Networks advanced optical transmission<br />
products for Ethernet, GEPON, HFC, FTTx and RFoG<br />
applications<br />
• Viewteq Corp. solutions for digital and analog headends<br />
and combining, amplifying or splitting networks<br />
• Radiant Communications products for transport of data,<br />
video and audio<br />
• Tech Products’ Everlast for signs, tags and markers that are<br />
UL-tested and will not fade for more than 40 years<br />
• Myers Power for outside-plant cable network powering and<br />
UPS<br />
• Addressable tap systems for MDUs and hospitals as well as<br />
refurbished CATV gear at drastically reduced prices.<br />
General Machine Products<br />
3111 Old Lincoln Hwy.<br />
Trevose, PA 19053<br />
P: 215-357-5500<br />
F: 215-357-6216<br />
Contact: Ted Clemens, Director of Sales<br />
Email: info@gmptools.com<br />
www.gmptools.com<br />
Industry segments: PCO/MDU, FTTx, Telcos, Cable TV,<br />
Municipality<br />
Products: Outside Plant, Inside Plant, Structured Wiring,<br />
Design/Construction<br />
For more than 75 years, General Machine Products Company<br />
(GMP) has been a global provider of products for the telecommunications,<br />
power utility and cable television industries and<br />
November/December 2009 | www.broadbandproperties.com | BROADBAND PROPERTIES | 41
<strong>2010</strong> <strong>Buyers</strong> <strong>Guide</strong><br />
the contractors that serve them. Product applications include<br />
the placement of fiber optic, copper conductor and coaxial<br />
cable both aerially and underground.<br />
GMP aerial cable-lashing machines, Adams continuousduty<br />
winches and fiber optic cable pullers are accepted as the<br />
industry standard. GMP’s 1,100+ products also include cable<br />
reels and aerial blocks, cable cutters, unique RJ plug-pressing<br />
tools, fiber optic cable-blowing equipment and other specially<br />
designed tools for the data, telecommunications and power<br />
utility markets.<br />
The company’s facilities include a 100,000-square-foot<br />
manufacturing plant in Trevose, Pa., in suburban Philadelphia,<br />
and a plant in Rutland, U.K. (its CBS Products Ltd. unit). Both<br />
facilities are equipped with technologically advanced machine<br />
tools and staffed by well-trained teams of craftspeople.<br />
Great Lakes Data Systems<br />
5954 Priestly Drive<br />
Carlsbad, CA 92008<br />
P: 800-882-7950<br />
F: 760-602-1928<br />
Contact: Sandi Kruger<br />
Email: sandi@glds.com<br />
www.gldscom<br />
Industry segments: PCO/MDU, FTTx, Wireless, Telcos,<br />
Cable TV, Municipality<br />
Products: Software<br />
WinCable sets a new standard for cable billing and subscriber<br />
management software. Digital and analog set-top boxes, conditional<br />
access, satellite, cable modems, VoD and VoIP are all<br />
managed directly from the WinCable system. GLDS also offers<br />
Web-enabled customer self-care (including bill view, subscriber<br />
self-upgrades, pay per view and credit-card payments).<br />
• Designed for the requirements of private and municipal<br />
cable<br />
• Support for interdiction, FTTH, digital, VoIP and more<br />
• Landlord/tenant billing options<br />
Serving small and midsized operators, GLDS has implemented<br />
its solutions for more than 300 cable systems in 49<br />
U.S. states and 40 countries worldwide. Contact GLDS Sales<br />
at 800-882-7950.<br />
JDSU<br />
One Milestone Center Court<br />
Germantown, MD 20876<br />
P: 381-353-1550<br />
F: 240-404-1199<br />
Contact: Bernie Tylor<br />
Email: Bernie.tylor@jdsu.com<br />
www.jdsu.com<br />
Industry segments: FTTx, Wireless, Telcos, Cable TV,<br />
Municipality<br />
Products: Test Equipment<br />
JDSU enables broadband and optical innovation in the communications,<br />
commercial and consumer markets. JDSU is the<br />
leading provider of communications test and measurement<br />
solutions and optical products for telecommunications service<br />
providers, cable operators and network equipment manufacturers.<br />
JDSU is also a leading provider of innovative optical<br />
solutions for medical/environmental instrumentation, semiconductor<br />
processing, display, brand authentication, aerospace<br />
and defense and decorative applications. More information is<br />
available at www.jdsu.com.<br />
Michels Corporation<br />
817 West Main St.<br />
Brownsville, WI 53006<br />
P: 920-583-3132<br />
F: 920-583-3429<br />
Contact: Jerrod Henschel<br />
Email: jhensch@michels.us<br />
www.michels.us<br />
Industry segments: FTTx,<br />
Telcos, Municipality<br />
Products: Outside Plant,<br />
Design/Construction<br />
A pioneer in fiber optic network<br />
construction, Michels<br />
continues to lead the way as<br />
a premier national communications<br />
contractor. Michels<br />
serves all sectors of the communications<br />
industry, from local telephone companies, broadband<br />
and cable TV providers to the education and enterprise<br />
sectors. Michels delivers seamless telecommunications design<br />
and turnkey construction and implementation.<br />
Multicom<br />
1076 Florida Central Parkway<br />
Longway, FL 32750<br />
P: 800-423-2594<br />
F: 407-339-0204<br />
Contact: Todd Schaffer, Marketing; Scott Brietz, Sales<br />
Email: todd@multicominc.com; scott@multicominc.com<br />
www.multicominc.com<br />
Industry segments: PCO/MDU, FTTx, Telcos, Cable TV,<br />
Municipality<br />
Products: Outside Plant, Inside Plant, Structured Wiring,<br />
Test Equipment, Opto-<br />
Electronics, Design/<br />
Construction, Headends, VoIP<br />
Services<br />
QAM, 8VSB, ITU J.83 Annex<br />
A and B – have you looked at a<br />
spec sheet for a new modulator<br />
lately? Our industry is experi-<br />
®<br />
42 | BROADBAND PROPERTIES | www.broadbandproperties.com | November/December 2009
Connected<br />
at the Summit<br />
Get<br />
Biggest and Best…<br />
Expanded Multi-Housing Program<br />
An Agenda Developed by Industry Leaders<br />
MDU Co-Chairmen:<br />
Summit Ever<br />
April 26 - 28<br />
Official Corporate Host<br />
Dallas<br />
Chris Acker<br />
Director, Building Technology Services Group,<br />
Forest City Enterprises, Inc.<br />
Henry Pye<br />
Vice President, Resident Technology Solutions,<br />
RealPage, Inc.<br />
Steve Sadler<br />
Vice President, Ancillary Services,<br />
Post Apartment Homes, L.P.<br />
Event Co-Sponsors<br />
Toward a Fiber-Connected World<br />
The <strong>2010</strong> Advisory Panel of Property Owners Includes:<br />
Brian McIntire<br />
Director of Information Technology – Buckingham Companies<br />
Cheryl Barraco<br />
Director of Telecommunications – Avalon Bay Communities, Inc<br />
Michael Halbrook<br />
Ancillary Business Manager – Mid-America Apartment Communities<br />
Jeffrey Bond<br />
Vice President, Ancillary Services – Related<br />
Jorge de Cardenas<br />
Sr. Vice President Information Technology – American Campus Communities<br />
Karen Seemann<br />
Director Ancillary Income – Essex Property Trust<br />
Kent McDonald<br />
Director of Communications Services – AIMCO<br />
Mark Bershenyi<br />
Director of Contracts – Archstone Smith<br />
Michael Burnette<br />
Vice President, IT – Place <strong>Properties</strong><br />
Robert Bishop<br />
Vice President – Riverstone Residential Group<br />
Steve Merchant<br />
Vice President of Revenue Strategy – Equity Residential<br />
Terry Fulbright<br />
Vice President, Director of Ancillary Services – UDR, Inc.<br />
Woodrow Stone<br />
Sr. Director, PMO – Pinnacle<br />
Secure your seat today by calling 877-588-1649,<br />
or visit our website at www.bbpmag.com
Get Connected…<br />
At The Summit<br />
Biggest and Best…<br />
Summit Ever<br />
Identifying the Value:<br />
Multifamily Emerges from Recession<br />
Future of Multifamily Design:<br />
What Building Styles, Systems and<br />
Applications will Dominate Tomorrow’s<br />
Multifamily Community?<br />
While it is still not clear when development will begin<br />
anew, it is obvious that multifamily development will be<br />
far different from the pre-recession status quo. The expert<br />
panel will present views regarding the new post-recession<br />
world of multifamily development.<br />
• Henry Pye – Vice President, Resident Technology<br />
Solutions, RealPage, Inc.<br />
• Ron Nickson – Vice President of Building Codes,<br />
National Multi Housing Council<br />
• Maureen Mahle – SWA<br />
• Chris Wood – Hanley Wood<br />
Due Diligence: Evaluating an Existing<br />
Multifamily Community<br />
Better, faster, cheaper: How do providers and owners give<br />
residents what they want for a price they want?<br />
• Henry Pye – Vice President, Resident Technology<br />
Solutions, RealPage Inc.<br />
• Kent McDonald – Director of Resident Technology,<br />
AIMCO<br />
• Mike Kolb – Overbuild Specialist, Connexion<br />
Technologies<br />
Regulatory Update<br />
Panelists will discuss changes in the regulatory landscape<br />
and the impacts of these changes (or proposed changes)<br />
on the multifamily industry.<br />
• Cheryl Barraco – Director of Telecommunications,<br />
Avalon Bay Communities Inc.<br />
• Matthew Ames – Telecommunications Law,<br />
Miller & Van Eaton<br />
• James W. MacNaughton, Esq. – Telecommunications<br />
Specialist, Law office of W.J. MacNaughton<br />
(Confirmed and Invited Speakers as of 11-16-09)<br />
Two Triple-Play Providers Serving<br />
One Community<br />
Residents demand choice. Providers are focusing on triple<br />
-play services and actually appear to want to compete<br />
with each other. On the surface, it sounds like paradise for<br />
owners and residents, but what lies beneath the surface<br />
(or behind the walls) may not be so pleasant. Although<br />
providers are keenly aware of the cost of delivering their<br />
product, owners may not be aware of their own costs<br />
and obligations in providing their residents with digital<br />
choices. This panel will dive below the pristine surface to<br />
explain why some may find deeply buried costs.<br />
• Steve Sadler – Vice President, Ancillary Services,<br />
Post Apartment Homes, L.P.<br />
• Mark Bershenyi – Director of Contracts,<br />
Archstone Smith<br />
• Lin Atkinson – General Manager,<br />
National Accounts, AT&T Connected Communities<br />
• William (Bill) Revell – Vice President, National<br />
MDU Sales and Services Operations,<br />
Comcast Cable<br />
• Joseph Geroux – Director of Business<br />
Development, Charter Communications<br />
• Eric Fichtner – Executive Vice President,<br />
Products and Services,<br />
Connexion Technologies<br />
4th Annual Legal Leaders Panel<br />
Listen to the legal leaders for multifamily and service<br />
providers discuss today’s hot issues. Gain valuable insight<br />
into the terms and conditions in service and marketing<br />
agreements that are relevant to today’s market.<br />
• Mary Kane – Senior Counsel, Comcast<br />
• Ian Davis – Lawyer, Munsch Hardt Kopf & Harr<br />
• Art Hubacher – Lawyer, Costlow & Hubacher<br />
• Matthew Ames – Telecommunications Law,<br />
Miller & Van Eaton<br />
Case Study: The Real Value of an Owner’s<br />
Marketing Efforts for Providers<br />
What is the value of on-site marketing rights and owner<br />
assistance? Verizon will answer this question by reviewing<br />
a number of FiOS-deployed communities with differing<br />
degrees of on-site marketing and owner assistance.<br />
• Daniel O’Connell – National Sales Director, Verizon<br />
Enhanced Communities<br />
Points of Demarcation: Have the Lines<br />
Become too Blurry to See?<br />
What does the “point of demarcation,” or “demarc,” really<br />
mean? When is it appropriately applied? Has the demarc<br />
reached the end of its illustrious life, to be replaced by another<br />
all-defining term? Or are owners and providers gearing up<br />
for yet another battle that is likely to leave them both weary?<br />
• Daniel O’Connell – National Sales Director,<br />
Verizon Enhanced Communities<br />
• Mike Olson – DIRECTV<br />
• Richard Holtz – CEO, InfiniSys<br />
• Shannon Boyle – Director of MDUs and Single<br />
Family Development, Cox Communications<br />
What Is the Value in Bulk Services?<br />
Critical to many multifamily verticals, bulk services are<br />
constantly evolving. Providers and owners will discuss<br />
current, near-term and future bulk services for multifamily<br />
communities.<br />
• Karla Martin – Senior Manager, Resident<br />
Technology Solutions, RealPage Inc.<br />
• Gregory McDonald – Director of<br />
Telecommunications, Camden Property Trust<br />
• Jerry Grasmick – Vice President, Dish Network<br />
• Nathan Geick – MDU Division Director,<br />
Suddenlink Communications<br />
• Robert Grosz – Executive Vice President and<br />
General Manager, Pavlov Media<br />
• Ian Davis – Lawyer, Munsch Hardt Kopf & Harr<br />
Case Study: Switched Digital Video<br />
The what, why, when and how of Time Warner Cable’s<br />
deployment of Switched Digital Video (SDV). What does it<br />
mean to property owners, and how will it affect your common<br />
areas, such as fitness centers and community rooms?<br />
• Dave Schwehm – Senior Director, National Sales, Time<br />
Warner Cable<br />
Owner Discussion: Marketing Agreements<br />
and Industry Trends<br />
If you are dazed and confused by the latest version of a marketing<br />
agreement or by the whiz-bang technology a provider<br />
says you can’t live without, this is the session for you. We will<br />
explore industry trends in the comfortable and protected confines<br />
of an “owner only” setting. No glossy marketing material<br />
or legalese will add to the confusion; we’ll have only honest<br />
and frank discussion about the impacts on our industry and<br />
our residents. This is an excellent forum for smaller owners<br />
who may not have the in-house expertise to sort through a<br />
confusing and often costly decision-making process.<br />
• Steve Sadler – Vice President, Ancillary Services,<br />
Post Apartment Homes, L.P.<br />
The Value Proposition for the Consumer<br />
Owners and providers get together to discuss current and<br />
near-term service offerings that will provide value to the<br />
owner’s residents and the provider’s subscribers. How can<br />
provider offerings complement those of the owner?<br />
• Steve Merchant – Vice President of Revenue Strategy,<br />
Equity Residential<br />
• Lin Atkinson – General Manager, National Accounts,<br />
AT&T Connected Communities<br />
• Michael Baer – Regional Sales Manager, Insight<br />
• Tammy Gonzales –General Manager Commercial<br />
Markets, Bright House<br />
• Vin Lipinski – Vice President Business Development,<br />
DirecPath<br />
Providers Panel: What Do Providers Want From<br />
Multifamily Owners, Managers and Builders?<br />
Owners have often discussed the issues, both contractual<br />
and operational, that affect their properties; now providers<br />
will have a chance to discuss the multifamily market from<br />
their perspective.<br />
• Chris Acker – Director, Building Technology Services<br />
Group, Forest City Enterprises Inc.<br />
• Dave Schwehm – Senior Director, National Sales,<br />
Time Warner Cable<br />
• William (Bill) Revell – Vice President, National MDU<br />
Sales and Services Operations, Comcast Cable<br />
• Daniel O’Connell – National Sales Director, Verizon<br />
Enhanced Communities<br />
• Lin Atkinson – General Manager, National Accounts,<br />
AT&T Connected Communities<br />
• Mike Olson – Vice President of Sales, DIRECTV<br />
• Eric Fichtner – Executive Vice President,<br />
Products and Services, Connexion Technologies<br />
Secure your seat today by calling 877-588-1649,<br />
or visit our website at www.bbpmag.com<br />
To Exhibit or Sponsor, contact: Irene Prescott at<br />
irene@broadbandproperties.com, or call 316-733-9122
Get Connected…<br />
At The Summit<br />
Biggest and Best…<br />
Summit Ever<br />
Sponsors<br />
Official Corporate Host<br />
Exhibitors<br />
Diamond SPONSOR<br />
Platinum SPONSOR<br />
Enhanced Gold SPONSOR<br />
Gold SPONSOR<br />
Special SPONSOR<br />
Silver SPONSOR<br />
DESIGN NINE<br />
broadband architecture + engineering<br />
SOLUTIONS. COMMUNICATIONS. TRANSFORMATION.<br />
FEATURED SPONSORS<br />
Media Sponsor<br />
Research Sponsors<br />
SOLUTIONS. COMMUNICATIONS. TRANSFORMATION.<br />
Secure your seat today by calling 877-588-1649,<br />
or visit our website at www.bbpmag.com<br />
To Exhibit or Sponsor, contact: Irene Prescott at<br />
irene@broadbandproperties.com, or call 316-733-9122
Get Connected…<br />
At The Summit<br />
Biggest and Best…<br />
Summit Ever<br />
Community<br />
Special Summit Guest:<br />
RURAL TELECOMMUNICATIONS CONGRESS<br />
Sponsors of Rural TeleCon<br />
<strong>Broadband</strong> for Rural Prosperity<br />
Research<br />
<strong>Broadband</strong> <strong>Properties</strong> welcomes the Rural Telecommunications Congress to<br />
Summit <strong>2010</strong>. RTC has been invited to hold its own event adjacent to the Summit.<br />
RTC Mission Statement:<br />
To advance the position of rural America with respect to telecommunications access.<br />
RTC Background:<br />
• 1997 — A group of concerned citizens, local and state government officials, consultants and<br />
others begin meeting in Aspen, Colorado each fall to discuss how the Western states can<br />
benefit from high speed broadband services. Concerns include the need for knowledge at<br />
the grass roots level about applications for education, health, government, and the private<br />
sector. The conferences attract 150 – 200 attendees.<br />
• 2001 — Organizers reach out nationally, attracting attendees from the Eastern states.<br />
The Rural Telecommunications Congress is formed, officers elected, by-laws written.<br />
The RTC, with its exclusive focus on rural issues, immediately becomes “the national rural<br />
telecommunications conference” to attend.<br />
• 2002 — Conference in Des Moines draws well over 350 attendees, with<br />
every state represented. Event features a Federal Resource Center and<br />
nationally recognized speakers from industry and government. The<br />
conference includes a large vendor convention hall and numerous breakout sessions.<br />
• 2003 — Annual RTC conference is held in Washington, D.C., attracting nearly 400 attendees<br />
from around the country and the world.<br />
• Annual events continue to attract up to 400 — a worldwide network of practitioners,<br />
advocates and technologists dedicated to the quality of life in rural communities.<br />
Technology<br />
Applications<br />
— 2004 in Spokane, Washington<br />
— 2005 Lexington, Kentucky<br />
— 2006 Little Rock, Arkansas<br />
— 2007 Springfield, Illinois<br />
— 2008 Smugglers Notch, Vermont<br />
To become an RTC member or learn more about RTC, visit: www.rtcconference.org/rtc<br />
To register for the Summit or the RTC special event, visit: www.bbpmag.com<br />
Secure your seat today by calling 877-588-1649,<br />
or visit our website at www.bbpmag.com<br />
Economic<br />
Development<br />
Healthcare<br />
Honorary Summit Chairman<br />
Tim Nulty<br />
East Central Vermont<br />
Community Fiber Network<br />
Special Summit Chairman<br />
The Hon. Hilda Legg<br />
Vice Chair<br />
<strong>Broadband</strong> <strong>Properties</strong> Magazine<br />
START PLANNING NOW FOR SUMMIT <strong>2010</strong>.<br />
This year’s event will be at a new location – an excellent hotel in a vibrant<br />
neighborhood full of superb dining and other attractions.<br />
The InterContinental is convenient to the two main airports in Dallas –<br />
DFW and Love Field – and adjacent to Addison Airport, ideal for private aircraft.<br />
It’s the leading event for network builders and deployers.<br />
The Summit is widely recognized as the number one venue for information<br />
on digital and broadband technologies for buildings and communities.<br />
Activities and Sessions Include:<br />
• Newest Case Studies on How <strong>Broadband</strong> Spurs Economic Development • Applications to<br />
Generate Profits for Network Operators • Awards for Today’s Leading <strong>Broadband</strong> Communities<br />
• World-Class Keynoters • Evening Receptions and Networking Events<br />
Programs now being planned involve:<br />
• The latest broadband strategies of cities and communities • Lessons learned from others –<br />
what to emulate and what to avoid • Sessions on getting your customers and<br />
constituents on board with your plans. • Panels on increasing the ROI of your buildings.<br />
• Roundtables on improving the appeal of your properties.<br />
Who Should Attend:<br />
Attendees include all those involved in the design and<br />
development of communities, including:<br />
• Real Estate Developers • Property Owners • Independent Telcos<br />
• Municipal Officials • Private Cable Operators • Town Planners<br />
• Economic Development Professionals • Architects and Builders<br />
• System Operators • Investors • Utility Organizations • System Integrators<br />
Register Early to Receive Major Discounts<br />
Special Reduced Rates Now in Effect<br />
Honorary Summit Chairman<br />
The Hon. Graham Richard<br />
Former Mayor and State Senator<br />
National <strong>Broadband</strong> Champion<br />
April 26 – 28, <strong>2010</strong> - Dallas<br />
Online registration starts Nov. 1 * Prior to Nov. 1 call 877-588-1649<br />
To Exhibit or Sponsor, contact: Irene Prescott at<br />
irene@broadbandproperties.com, or call 316-733-9122
<strong>2010</strong> <strong>Buyers</strong> <strong>Guide</strong><br />
encing an upheaval of new terminology, applications and technology.<br />
How do you keep pace? Here’s the good news: You don’t<br />
have to! Multicom’s experienced sales engineers have proven<br />
track records for providing the product and service solutions<br />
you need, when you need them. With 13,000 products from<br />
more than 270 of the world’s major manufacturers in stock, we<br />
provide not only the answers to today’s most challenging questions<br />
but also the products to implement the most sophisticated<br />
projects. Look to Multicom when you need reliable information<br />
– and the products and experience to back it all up.<br />
Multicom will also design your distribution system, provide<br />
a complete priced bill of materials and then rack, balance and<br />
crate your headend for a complete plug-and-play solution. For<br />
cable operators planning triple-play services, Multicom’s affiliate<br />
company Mconnect offers a quick and easy solution to enhance<br />
existing video and data offerings with a high-quality voice service.<br />
In business since 1982, Multicom is a full-line stocking distributor<br />
and manufacturer of products used for the end-to-end<br />
integration of television, data, voice and security over fiber, coax<br />
and copper. For competitively priced products and services, call<br />
us at 1-800-423-2594, e-mail us at multicom@multicominc.<br />
com or visit our Web site at www.multicominc.com.<br />
Multilink<br />
80 Ternes Ave.<br />
Elyria, OH 44035<br />
P: 440-366-6966<br />
F: 440-366-6802<br />
Contact: Matt Ternes<br />
Email: mternes@multilinkone.com<br />
www.multilinkone.com<br />
Industry segments: PCO/<br />
MDU, FTTx, Wireless, Telcos,<br />
Cable TV, Municipality<br />
Products: Outside Plant, Inside<br />
Plant, Structured Wiring<br />
Multilink is a designer, developer<br />
and manufacturer of<br />
products for voice, data, video<br />
and CATV applications. Multilink<br />
manufactures fiber optic products, including preconnectorized<br />
housings and cable assemblies, splice closures, slack<br />
storage devices, cable markers and tags, fiber-node cabinets<br />
and environmentally controlled enclosures. Additional products<br />
include MDU steel security enclosures, plastic demarcation<br />
boxes, plastic and steel moldings designed for copper and<br />
fiber distribution in buildings and FTTx products.<br />
OFS<br />
2000 Northeast Expressway<br />
Norcross, GA 30071<br />
P: 1-888-FIBERHELP<br />
Contact: Fernando Constantino<br />
Email: ofs@ofsoptics.com<br />
www.ofsoptics.com<br />
<br />
Industry segments: PCO/MDU, FTTx, Wireless, Telcos,<br />
Cable TV, Hospitality, Municipality<br />
Products: Outside Plant, Inside Plant, Wireless,<br />
Design Construction<br />
OFS, a designer, manufacturer<br />
and supplier of optical<br />
fiber products and solutions,<br />
can help “Fiber-connect your<br />
community” with a highperformance<br />
FTTH portfolio<br />
that includes well-known<br />
brands such as the comprehensive, end-to-end FOX Solution<br />
(Fiber Optics to the X), ultra-bend-insensitive EZ-Bend Optical<br />
Cables, V-Linx Spool & Play Solution for MDU deployments<br />
and all-dry optical cables.<br />
OFS’ innovative FTTH solutions help deliver fiber directly<br />
to homes, businesses and MDUs and support high-quality<br />
revenue-generating services such as HDTV, online gaming and<br />
video on demand that can increase ROI and property values.<br />
OFS’ ultra-bend-insensitive EZ-Bend Cables are the ideal solution<br />
for MDU and in-home wiring applications, and can be<br />
routed around sharp corners and stapled using the same simple<br />
practices and installation tools used for copper service cables.<br />
Available in riser, plenum, LS0H and indoor/outdoor versions,<br />
EZ-Bend Cables are free of heavy metals and RoHS compliant.<br />
Other OFS solutions include state-of-the-art FITEL fusion<br />
splicers and tools; bend-optimized AllWave FLEX ZWP fiber;<br />
AllWave FLEX jumpers and fanouts; and all-dry Fortex and<br />
AccuRibbon cables. OFS can also help optimize your network<br />
design with its OptiCost FTTH Modeling services.<br />
Optelian<br />
2121 New Market Parkway SE<br />
Marietta, GA 30067<br />
P: 770-690-9575<br />
F: 770-690-9506<br />
Contact: Tom Dell<br />
Email: info@optelian.com<br />
www.optelian.com<br />
Industry segments: FTTx, Wireless, Telcos, Cable TV,<br />
Municipality<br />
Products: Outside Plant, Inside Plant, Wireless, Test<br />
Equipment, Headends<br />
Optelian, a trusted designer and manufacturer of optical transport<br />
systems, serves some of the world’s largest network operators.<br />
With more than 200 customers and 85,000 wavelengths<br />
installed, the company is known industrywide for its exceptional<br />
product quality, speed of delivery, superior customer<br />
support and custom design capabilities. Since 2002, Optelian’s<br />
portfolio of optical solutions has enabled telecom, multiservice<br />
operator (MSO), utility and enterprise customers to expand<br />
their fiber capacity so they can increase capabilities, costeffectiveness<br />
and efficiency. Optelian’s sales and marketing<br />
organization is located in Marietta, Ga., with in-house<br />
November/December 2009 | www.broadbandproperties.com | BROADBAND PROPERTIES | 43
<strong>2010</strong> <strong>Buyers</strong> <strong>Guide</strong><br />
development and manufacturing based in Ottawa, Ont. For<br />
more information, visit www.optelian.com.<br />
Pace International<br />
3582 Technology Drive NW<br />
Rochester, MC 55901<br />
P: 1-800-444-PACE<br />
F: 507-424-4979<br />
Contact: Sam Schell<br />
Email: sams@paceintl.com<br />
www.paceintl.com<br />
Industry segments: PCO/MDU, Telcos, Cable TV,<br />
Hospitality, Municipality<br />
Products: Outside Plant, Inside Plant, Structured Wiring,<br />
Test Equipment, Design/Construction, Headends<br />
Pace is an automation and procurement specialist with expertise<br />
in supporting communication systems in commercial environments<br />
worldwide. As an authorized hardware and content<br />
distributor for DISH Network, the company offers complete<br />
solutions for MDU and commercial operators. Pace carries<br />
the industry’s most recognized products, along with its own<br />
lineup of DISH Network–approved installation materials, sold<br />
under its own brand name, MVP. Complete solutions from<br />
Pace include system design, technical support, SBCA certification,<br />
“Built, Balanced, and Burned” analog and QAM headends,<br />
tool kitting, billing and 24/7 customer support. Founded<br />
in 1972, Pace International operates from its headquarters in<br />
Rochester, Minn., and through facilities in Denver, Colo., and<br />
Ningbo, China. For more information, visit www.paceintl.<br />
com or call 1-800-444-PACE (7223).<br />
Power & Tel<br />
2673 Yale Ave.<br />
Memphis, TN 38112<br />
P: 800-238-7514<br />
F: 901-320-3082<br />
Contact: Keith Cress<br />
Email: marketing@ptsupply.com<br />
www.ptsupply.com<br />
Industry segments: FTTx, Wireless, Telcos, Cable TV,<br />
Hospitality, Municipality<br />
Products: Outside Plant, Inside Plant, Wireless, Structured<br />
Wiring, Test Equipment, Opto-Electronics, Headends<br />
Power & Tel offers the complete product solution to today’s<br />
communication service provider. As your need list grows –<br />
FTTH, IPTV, VoIP, central office/headend, OSP, wireless,<br />
customer premises, home networking, testing – we have the<br />
product and solution portfolio to build your entire network.<br />
Remember that Power & Tel works where you work. So whether<br />
it is our wide-ranging inventory or our people and service<br />
capabilities, we are focused on meeting your everyday needs.<br />
Allow our extensive distribution network to be your inventory.<br />
Allow our team to be a contributing partner in your success.<br />
Quanta Services<br />
1360 Post Oak Blvd., Ste. 2100<br />
Houston, TX 77056<br />
P: 713-629-7600<br />
F: 713-629-7676<br />
Contact: Walt Donovan<br />
Email: wdonovan@quantaservices.com<br />
www.quantaservices.com<br />
Industry segments: PCO/MDU, FTTx, Wireless, Telcos,<br />
Cable TV, Municipality<br />
Products: Outside Plant, Inside Plant, Wireless,<br />
Design/Construction, Headends<br />
Quanta Services provides<br />
services to the telecommunications<br />
industry from inception<br />
to implementation<br />
to ongoing enhancements.<br />
Quanta’s experience in<br />
broadband, telephony and<br />
data technologies, coupled<br />
with its inside- and outsideplant<br />
capabilities, enables the company to seamlessly handle all<br />
phases of a network’s life span.<br />
Quanta takes telecom systems across the nation to businesses,<br />
campuses and homes, through fields, mountains, forests<br />
and towns large and small. From engineering, route selection<br />
and right-of-way procurement to trenching, installation,<br />
testing, product positioning and marketing, Quanta’s scope<br />
of telecommunications network services covers projects from<br />
start to finish.<br />
Seikoh Giken USA<br />
4405 International Blvd., Ste. B109<br />
Norcross, GA 30093<br />
P: 770-279-6602<br />
F: 770-279-8839<br />
Contact: Sarah Poe<br />
Email: sales@stg-usa.com<br />
www.SeikohGiken.com<br />
Industry segments: FTTx, Telcos<br />
Products: Outside Plant, Inside Plant, Design/Construction,<br />
Headends<br />
Seikoh Giken Company: Global Solutions in Optical Precision.<br />
Established in 1972, the Seikoh Giken Company continues<br />
to expand and build upon the core technologies of precision<br />
micromachining and optical processing, with the goal of providing<br />
products that meet and exceed market needs.<br />
Today, Seikoh Giken – Fiber Optics Product Division provides<br />
precision interconnectivity solutions for optical networks<br />
and manufacturing environments. For FTTx installations, we<br />
supply the Splice-On-Connector, premium patch cords, adaptors,<br />
attenuators, FerruleMate/HandiMate connector cleaners<br />
and the RepairMate restoration polisher. For OEM production,<br />
we offer ferrules, connectors, high-volume polishers, metalized/AR<br />
coated fibers and isolators.<br />
44 | BROADBAND PROPERTIES | www.broadbandproperties.com | November/December 2009
<strong>2010</strong> <strong>Buyers</strong> <strong>Guide</strong><br />
Spot On Networks<br />
55 Church St., Suite 200<br />
New Haven, CT 06510<br />
P: 203-523-5207<br />
F: 203-773-1947<br />
Contact: Oliver Oetterer<br />
Email: ooetterer@spotonnetworks.com<br />
www.spotonnetworks.com<br />
Industry segments: Wireless<br />
Products: Wireless, Structured<br />
Wiring, Network Services/<br />
Programming, Software,<br />
Design/Construction<br />
Spot On Networks provides aggressively<br />
priced high-speed wireless<br />
Internet services to multifamily<br />
residents throughout their apartments and community areas.<br />
Wi-Fi technologies and state-of-the-art equipment increase the<br />
community’s value to residents. A secured and monitored network<br />
provides the property an advantage by differentiating it<br />
from others. Spot On partners with the country’s leading property<br />
owners, developers and managers, offering pricing choices<br />
to meet their needs: increasing and maintaining occupancy<br />
and raising renewal and sales rates. Spot On’s superb customer<br />
service allows management a worry-free environment. Reap<br />
the benefits of the amenity that your residents will use daily.<br />
Sumitomo Electric<br />
Lightwave<br />
78 Alexander Dr.<br />
Research Triangle Park, NC 27709<br />
P: 800-358-7378<br />
Contact: Customer Service<br />
Email: info@sumitomoelectric.com<br />
www.sumitomoelectric.com<br />
Industry segments: PCO/MDU, FTTx, Telcos, Cable TV,<br />
Hospitality, Municipality<br />
Products: Outside Plant, Inside Plant, Structured Wiring,<br />
Test Equipment<br />
Sumitomo Electric Lightwave<br />
(www.sumitomoelectric.com)<br />
manufactures and tailors fiber<br />
optic products specifically<br />
designed to lower the cost of<br />
deployment for FTTX, Premises,<br />
MDU, and Access and<br />
Enterprise networks including<br />
fiber optic cable, termination<br />
solutions, fusion splicers<br />
and accessories, splitters, and<br />
passive products. As the leader in optical ribbon fiber technology<br />
and first-to-market innovations, Sumitomo introduced the<br />
industry’s first ribbon drop cable and the first and most popular<br />
handheld splicers. Featured also are the Lynx Splice-On<br />
Connector and the industry’s only dual-heater fusion splicers<br />
that improve splicing efficiency by over 80 percent. Sumitomo<br />
also manufactures the environmentally green FutureFlex Air-<br />
Blown Fiber LAN infrastructure, adopted by the Pentagon,<br />
DFW Airport, Maricopa County, Arizona Cardinals Stadium,<br />
Johns Hopkins University, ESPN, CNN, the Mayo Clinic and<br />
others. Visit www.futureflex.com.<br />
Telco Systems<br />
2 Hampshire St., Ste. 3A<br />
Foxboro, MA 02035<br />
P: 781-551-0300<br />
F: 781-255-2344<br />
Contact: Gail Pierce, Inside Sales Director<br />
Email: sales@telco.com<br />
www.telco.com<br />
Industry segments: PCO/MDU, FTTx, Wireless, Telcos,<br />
Cable TV, Hospitality, Municipality, Business Services<br />
Products: Opto-Electronics<br />
Telco Systems’ multiservice<br />
Carrier Ethernet access and<br />
demarcation solutions enable<br />
service providers to deploy<br />
highly reliable and manageable<br />
Ethernet services to both<br />
business and residential subscribers.<br />
The company’s active<br />
Ethernet FTTH solution<br />
allows service providers to offer fully integrated triple play including<br />
IPTV, VoIP and ultra-fast broadband up to 100 Mbps<br />
or even 1 Gbps per customer. These cost-effective solutions enable<br />
providers to improve their competitiveness, achieve operating<br />
efficiencies, address the demand for faster Internet service<br />
and pursue new revenue-generating opportunities.<br />
Telkonet<br />
20374 Seneca Meadows Parkway<br />
Germantown, MD 20876-7004<br />
P: 240-912-1800<br />
F: 240-912-1839<br />
Contact: Jeremy Griesbach<br />
Email: sales@telkonet.com<br />
www.telkonet.com<br />
Industry segments: Wireless, Hospitality<br />
Products: Wireless, Structured WIring<br />
Telkonet and EthoStream provide clean technology solutions<br />
for high-speed Internet access (HSIA), customer support and<br />
in-room energy management, all from one integrated, Webbased<br />
management platform. The Telkonet iWire System delivers<br />
reliable HSIA using powerline communications (PLC) that<br />
leverage existing internal electrical wiring, providing Internet<br />
access at electrical outlets without new wiring. EthoStream<br />
Gateway Servers (EGS) deliver standards-compliant, wireless<br />
November/December 2009 | www.broadbandproperties.com | BROADBAND PROPERTIES | 45
<strong>2010</strong> <strong>Buyers</strong> <strong>Guide</strong><br />
HSIA and enable real-time remote monitoring and management<br />
of a property’s HSIA and ISP. Telkonet’s stand-alone and<br />
networked in-room energy-management systems eliminate the<br />
wasteful heating and cooling of unoccupied rooms, reducing<br />
HVAC usage while ensuring occupant comfort.<br />
TESSCO Technologies<br />
11126 McCormick Road<br />
Hunt Valley, MD 21031<br />
P: 800-472-7373<br />
F: 410-527-0005<br />
Contact: Suzanne Borneman<br />
Email: borneman@tessco.com<br />
www.tessco.com<br />
Industry segments: Wireless, Telcos, Cable TV, Municipality<br />
Products: Outside Plant, Inside Plant, Wireless,<br />
Test Equipment<br />
TESSCO Technologies is a value-added provider of the product<br />
solutions needed to design, build, run, maintain and use<br />
wireless systems. TESSCO is committed to delivering, fast<br />
and complete, the product needs of wireless system operators,<br />
program managers, contractors, resellers and self-maintained<br />
utility, transportation, enterprise and government organizations.<br />
As Your Total Source provider of mobile and fixedwireless<br />
network infrastructure products, mobile devices and<br />
accessories, and installation, test and maintenance equipment<br />
and supplies, TESSCO assures customers of on-time availability<br />
while streamlining their supply-chain processes and lowering<br />
inventories and total costs. To learn more, please visit<br />
TESSCO.com.<br />
The Light Brigade<br />
837 Industry Dr.<br />
Tukwila, WA 98188<br />
P: 206-575-0404<br />
F: 206-575-0405<br />
Contact: Gina Lynd<br />
Email: gina@lightbrigade.com<br />
www.lightbrigade.com<br />
Industry segments: PCO/MDU, FTTx, Wireless, Telcos,<br />
Cable TV, Hospitality, Municipality<br />
Products: Outside Plant, Inside Plant, Test Equipment,<br />
Opto-Electronics, Design/Construction<br />
The Light Brigade offers multiple training options for fiberto-the-user<br />
(FTTx) installations. In addition to courses customized<br />
to clients’ specific needs, the four-day FTTx/PON<br />
for Installers and Planners course provides the knowledge and<br />
skills required to meet the unique testing, documentation, and<br />
troubleshooting requirements of FTTx networks, and offers<br />
the new Fiber Optic Technician–Outside Plant (FOT-OSP)<br />
certification. The FTTx/PON computer-based training module<br />
is a self-paced CD with 300 pages of content, video clips,<br />
animations, interactive design studies and quizzes. In <strong>2010</strong>,<br />
The Light Brigade will expand its FTTx training options with<br />
new courses and certifications.<br />
The Leading Conference on<br />
<strong>Broadband</strong> Technologies and Services<br />
April 26 – 28, <strong>2010</strong><br />
InterContinental Hotel – Dallas<br />
Addison, Texas<br />
“Business gets done here!<br />
From the moment I arrived, that’s what<br />
it was all about.”<br />
– Matt Springer, Executive Vice President of<br />
Mergers and Acquisitions, Connexion Technologies<br />
To Exhibit or Sponsor, contact: Irene Prescott at<br />
irene@broadbandproperties.com, or call 316-733-9122.<br />
For other inquiries, call 877-588-1649,<br />
or visit www.bbpmag.com.<br />
Toner Cable Equipment<br />
969 Horsham Road<br />
Horsham, PA 19044<br />
P: 800-523-5947<br />
F: 215-675-7543<br />
Contact: Sales Department<br />
Email: info@tonercable.com<br />
www.tonercable.com<br />
Industry segments: FTTx, Telcos, Cable TV, Hospitality,<br />
Municipality<br />
Products: Outside Plant, Inside Plant, Test Equipment,<br />
Opto-Electronics, Design/Construction, Headends<br />
Toner Cable Equipment is a manufacturer and full-line stocking<br />
distributor of cable television equipment since 1971. Our<br />
services include custom-built headends, FTTx, technical sales<br />
staff, same-day shipping and television system design assistance.<br />
Our products include modulators, processors, satellite<br />
receivers, HD encoders, Edge QAM modulators, multiplexors,<br />
46 | BROADBAND PROPERTIES | www.broadbandproperties.com | November/December 2009
<strong>2010</strong> <strong>Buyers</strong> <strong>Guide</strong><br />
character generators, fiber optic equipment, equipment cabinets,<br />
RF amplifiers, coax cable, taps, splitters and connectors.<br />
Our extensive in-stock inventory of more than 100 manufacturers<br />
includes companies such as Blonder Tongue, Adtec,<br />
Contemporary Research, Drake, Olson Technology, Pico Macom,<br />
Force, Ortel, CommScope, Pacific <strong>Broadband</strong> Networks,<br />
Times Fiber, Blankom, Sadelco and Middle Atlantic Products.<br />
Call for free catalog.<br />
Verizon Enhanced<br />
Communities<br />
One Verizon Way<br />
Basking Ridge, NJ 07920<br />
P: 866-638-6066<br />
Contact: Daniel O’Connell<br />
Email: Daniel.p.oconnell@verizon.com<br />
www.verizon.com/communities<br />
Industry segments: FTTx<br />
Products: Network Services/Programming<br />
Verizon Enhanced Communities is Verizon’s business unit dedicated<br />
to serving single- and multifamily residential, mixed-use,<br />
and commercial multitenant properties with broadband, video<br />
and advanced communications. Verizon’s fiber-to-the-premises<br />
infrastructure delivers Verizon FiOS Internet, TV and phone<br />
services over the most advanced all-fiber-optic network obtainable.<br />
FiOS can help increase your property’s profitability and<br />
add to its long-term viability. Verizon makes it easy, providing<br />
custom installation with dedicated management and engineering<br />
teams and ongoing customer service. Learn how to<br />
enhance the value of your community at www.verizon.com/<br />
communities.<br />
This guide can also be found online<br />
at www.bbpmag.com<br />
800.882.7950<br />
www.glds.com<br />
Digital • VOD • VoIP<br />
Data • Hotel PPV<br />
Cable Billing<br />
Billing & Provisioning<br />
Over 300 Satisfied Operators<br />
Lowest Total Cost Solutions<br />
FTTH, Voice, Video & Data<br />
Friendly, Expert Support<br />
®<br />
November/December 2009 | www.broadbandproperties.com | BROADBAND PROPERTIES | 47
FTTH CONFERENCE COVERAGE<br />
Highlights of the Houston<br />
Fiber-to-the-Home Conference<br />
Speakers at the September 2009 FTTH Conference shared<br />
their experiences building and operating fiber-to-the-home<br />
systems and explained why FTTH is critical to the future of<br />
the United States.<br />
A BBP Staff Report<br />
RUS Official: United States Needs<br />
A Next-Gen Network<br />
The United States cannot maintain<br />
world leadership without a<br />
next-generation broadband infrastructure,<br />
a Department of Agriculture<br />
official told the FTTH Conference. Jessica<br />
Zufolo, deputy administrator of the<br />
USDA’s Rural Utilities Service (RUS),<br />
said in a keynote address that there were<br />
many challenges and cost barriers to providing<br />
universal access to high-speed facilities<br />
as envisioned in the American Recovery<br />
and Reinvestment Act (ARRA),<br />
that the high costs of rural investment<br />
had deterred some carriers, but that the<br />
investment was critical for the country.<br />
Zufolo cited a report from the USDA’s<br />
Economic Research Service (discussed in<br />
the December 2008 issue of this magazine)<br />
showing that employment growth<br />
and earnings were higher in areas that<br />
obtained earlier access to broadband.<br />
Though RUS programs are technology<br />
neutral, Zufolo said, more than<br />
90 percent of the broadband loans the<br />
agency has made in the last two years<br />
have been for fiber to the home. More<br />
than $500 million will be available<br />
for rural broadband in this year’s farm<br />
bill, in addition to the funds available<br />
through the broadband stimulus<br />
program. In fact, RUS has become the<br />
seventh-largest bank in the United<br />
States, she said, and is an extremely costeffective<br />
loan administrator.<br />
Zufolo said she saw the agency’s mission<br />
as similar to that of its predecessor,<br />
the Rural Electrification Administration<br />
(REA), in the 1930s. The REA was able<br />
to stimulate economic activity in areas<br />
badly hit by the Depression.<br />
Despite these historical parallels, the<br />
broadband stimulus program currently<br />
under way is an “unprecedented project,”<br />
Zufolo said, due to its scale and timetable.<br />
She said the agency had learned a great<br />
deal from the first funding round (which<br />
was oversubscribed by a factor of seven<br />
and for which awards have not yet been<br />
made) and planned to make changes in<br />
the second funding round. Definitions of<br />
such statutory terms as “remote,” “rural,”<br />
“unserved” and “underserved” were controversial<br />
and may be reviewed. “Everything<br />
is on the table,” Zufolo said.<br />
Zufolo encouraged all audience<br />
members to work with RUS in making<br />
Although the RUS is technology neutral, most<br />
of its recent broadband loans have financed<br />
fiber-to-the-home projects.<br />
broadband universally affordable and accessible<br />
throughout the United States.<br />
Large Carriers and<br />
the <strong>Broadband</strong> Stimulus<br />
Program<br />
In a separate panel discussion, Eric<br />
Reed of Verizon and Kathleen Franco<br />
of AT&T discussed the extensive broadband<br />
infrastructure investments made by<br />
their companies, neither of which has applied<br />
for broadband stimulus funding.<br />
Both speakers said they supported<br />
the objectives of the stimulus program,<br />
as long as public funds were directed to<br />
unserved and underserved areas, rather<br />
than adding competition in areas already<br />
well served by broadband.<br />
Reed discussed the need to encourage<br />
broadband adoption, another goal<br />
of the broadband stimulus program. He<br />
said a large percentage of U.S. residents<br />
had access to broadband but did not use<br />
it, either because they could not afford<br />
it, because they were intimidated by the<br />
technology or because they required<br />
more education.<br />
To promote broadband adoption,<br />
Franco suggested extending the Universal<br />
Service Fund’s Lifeline program to<br />
cover broadband for low-income people,<br />
and extending the USF high-cost program<br />
to cover broadband. BBP<br />
48 | BROADBAND PROPERTIES | www.broadbandproperties.com | November/December 2009
FTTH CONFERENCE COVERAGE<br />
Telemedicine Essential to<br />
Expanding Health Care<br />
Health care providers and corporations<br />
are counting on telemedicine<br />
to improve health care<br />
access while controlling costs, Phillip<br />
Robinson, CEO of St. Joseph Medical<br />
Center in Houston, said in a keynote address<br />
to the FTTH Conference.<br />
St. Joseph Medical Center was a<br />
troubled, inner-city nonprofit hospital<br />
when a group of about 100 physicians<br />
purchased it in 2006 and turned it into<br />
a for-profit organization. Since then, the<br />
hospital has added many new programs<br />
and services; in the past year it has seen<br />
double-digit growth in nearly all service<br />
lines.<br />
Robinson said the hospital’s new<br />
owners have reinvented the organization<br />
Lafayette, La. – a city of 125,000<br />
halfway between New Orleans<br />
and the Texas border – endured<br />
one of the longest and bitterest fights<br />
of any municipality seeking to build its<br />
own fiber-to-the-home network. The results<br />
seem to have been worth the effort.<br />
In February 2009, five years and several<br />
lawsuits after the FTTH project was proposed,<br />
Lafayette Utilities System (LUS)<br />
began serving its first customers with<br />
voice, video and data. Its prices are 20<br />
percent below the competition’s, and the<br />
services it offers are superior.<br />
LUS director Terry Huval told the<br />
FTTH Conference that 70 percent of<br />
Lafayette households and 80 percent<br />
of businesses have expressed interest in<br />
signing up for LUS’ services. However,<br />
the utility’s business case is based on a<br />
conservative 50 percent take rate, and<br />
the actual break-even point is 23 percent,<br />
even if the system’s electronics are<br />
upgraded every seven years.<br />
through the use of technology, especially<br />
in their corporate health programs.<br />
Bringing Medical Care to<br />
Offshore Workers<br />
Telemedicine, including video consultations<br />
with doctors and the use of<br />
broadband-enabled diagnostic equipment,<br />
allows corporations in the shipping<br />
and offshore drilling industries to<br />
cost-effectively deliver medical care to<br />
workers who have infrequent access to<br />
doctors. Telemedicine is also useful for<br />
screening psychiatric patients for hospital<br />
admission – on-screen interviews are<br />
less threatening to agitated patients –<br />
and for diagnosing stroke patients, who<br />
must be evaluated very quickly if they<br />
Municipal Fiber in Lafayette<br />
100 Mbps for All –<br />
No Computer Needed<br />
Because LUS is a municipal electric utility,<br />
it is laying fiber along its own power<br />
line routes, 40 percent of which are underground<br />
and 60 percent are aerial.<br />
Construction is still in progress, and the<br />
system is expected to be complete by the<br />
middle of 2011.<br />
The LUS system is based on a GPON<br />
architecture. A headend delivers signals<br />
to 13 optical line terminals (OLTs) at<br />
electrical substations. Each OLT is connected<br />
to eight local conversion points<br />
and 288 customers, with a 1 x 32 bandwidth<br />
split. The optical network terminals<br />
(ONTs) at the customer premises<br />
connect to electric meters and battery<br />
backup devices.<br />
Residential customers can purchase<br />
up to 50 Mbps symmetrical Internet<br />
service and business customers up to<br />
100 Mbps; all customers receive 100<br />
Mbps symmetrical bandwidth for communication<br />
within the network. The<br />
company offers several standard service<br />
bundles and encourages customers to<br />
build their own bundles as long as the<br />
monthly subscription is at least $44, the<br />
amount required to cover the expense of<br />
building out fiber to the customer. Customers<br />
can mix and match video offerings<br />
to meet their needs – for example,<br />
using a digital set-top box and DVR<br />
are to be treated successfully with clotbusting<br />
drugs.<br />
The hospital recently launched a<br />
partnership with telemedicine provider<br />
MedConcierge to deliver services to the<br />
overseas employees of its corporate clients.<br />
This program will allow employees<br />
to see their regular doctors via videoconferencing.<br />
“We’ve had a great response<br />
from our corporate clients,”<br />
Robinson said. “I think there will be<br />
great demand for these services, and I’m<br />
proud to be the first to provide them.”<br />
Robinson said that, whatever approach<br />
is taken in health care reform,<br />
telemedicine will be essential in expanding<br />
health care services to people whose<br />
needs are currently unmet. BBP<br />
with one television and getting analogonly<br />
services on the others. A TV Web<br />
portal allows residents to obtain basic<br />
Internet access without a personal computer<br />
by plugging a keyboard into the<br />
set-top box.<br />
Challenges for a<br />
New Service Provider<br />
Huval said getting multiple vendors’<br />
equipment to interoperate has been a<br />
challenge due to finger-pointing and the<br />
“blame game.” Saying that the lack of<br />
support by some vendors had shocked<br />
him, he warned the audience, “Demand<br />
unambiguous performance requirements<br />
in your contract.”<br />
Another challenge has been obtaining<br />
video programming – a difficult,<br />
costly and time-consuming process.<br />
Huval suggested that municipal broadband<br />
providers form a video buying<br />
cooperative, much as small telcos and<br />
cablecos have done, to leverage their<br />
buying power.<br />
Finally, LUS’ struggles with the incumbents<br />
are not yet over. Even though<br />
the city prevailed in its lawsuits, Huval<br />
said that “attack ads, bad faith and subterfuge<br />
are too often the norm.” Despite<br />
November/December 2009 | www.broadbandproperties.com | BROADBAND PROPERTIES | 49
past and current challenges, Huval said<br />
the utility’s customers have responded<br />
with enthusiasm.<br />
Benefits for the City<br />
Voice, data and video service quality are<br />
uniformly excellent, and customers say<br />
they are saving up to $60 per month.<br />
One customer wrote, “I am excited to be<br />
able to support my community-owned<br />
system in this way. This system will help<br />
bring economic development and keep<br />
more of our dollars in Lafayette’s economy.”<br />
The local press has been equally<br />
supportive, saying, “We believe LUS<br />
Fiber will mean more good-paying jobs<br />
FTTH CONFERENCE COVERAGE<br />
and a better quality of life for the people<br />
of Lafayette.”<br />
Even before the FTTH project, LUS<br />
provided fiber connectivity to major<br />
businesses, health care providers, university<br />
facilities and government agencies.<br />
This institutional fiber network<br />
was instrumental in attracting a call<br />
center that employs 600 residents. Now,<br />
the economic development authority is<br />
preparing to track the FTTH system’s<br />
success in bringing additional jobs to<br />
the city.<br />
The city also benefits from highspeed<br />
connectivity in terms of education<br />
Louisiana Telco Markets FTTH<br />
To Businesses and Residents<br />
About 60 miles east of Lafayette,<br />
in Gonzales, La., the rural<br />
telco EATEL found itself in the<br />
middle of a building boom early in this<br />
decade. To accommodate rapid population<br />
growth fueled by exurban spillover<br />
from Baton Rouge, EATEL began<br />
building out fiber to the home in 2004.<br />
Displaced Gulf-Coast residents fleeing<br />
the twin hurricanes of 2005 accelerated<br />
the area’s growth. Today EATEL<br />
has 18,000 FTTP customers – one of<br />
the largest fiber deployments by a Tier 3<br />
company – and by next year it will have<br />
fiber available to 42,000 homes, about<br />
94 percent of its service area.<br />
Trae Russell, EATEL’s communications<br />
manager, told the FTTH Conference<br />
that EATEL has worked closely<br />
with the Ascension Parish Economic<br />
Development Corporation to leverage<br />
its network as a business advantage and<br />
said there were “definite signs” that the<br />
network was attracting new business.<br />
On its Web site, the economic development<br />
authority lists “an advanced digital<br />
and fiber optic network to support dataintensive<br />
activities” as a major advantage<br />
of moving to the parish.<br />
Fiber connections also help existing<br />
businesses compete more effectively. Because<br />
small and medium-sized businesses<br />
make up a critical customer segment for<br />
EATEL, the company has taken a leadership<br />
role in the business community,<br />
organizing seminars to help its business<br />
customers become more competitive.<br />
“These customers are competing with<br />
the big-box stores,” Russell explained.<br />
For its business customers with high<br />
bandwidth requirements, EATEL offers<br />
high-speed, symmetrical-bandwidth<br />
Internet packages. For businesses that<br />
have lower bandwidth demands but still<br />
require reliable, value-priced broadband,<br />
EATEL emphasizes discount pricing.<br />
Branding Fiber<br />
In the residential sector, Russell said, the<br />
company’s marketing strategy is to use<br />
the fiber network as its competitive advantage.<br />
“Make it sexy,” he said. “Tie cool<br />
apps to fiber (video on demand, caller ID<br />
on TV, unified messaging, interactive<br />
gaming). And keep branding fiber.”<br />
EATEL advertises its network as<br />
“100 percent fiber, 100 percent awesome,”<br />
emphasizing that its Internet<br />
service is dependably fast, unlike cable,<br />
and has far higher upstream speeds than<br />
cable. Local TV content, especially<br />
hunting, fishing and high-school sports,<br />
is another selling point for residential<br />
customers and a good way to differentiate<br />
the company from its national competitors.<br />
As a local company, EATEL<br />
and energy conservation. All the public<br />
schools are connected to the system, and<br />
students receive educational video programs<br />
from Louisiana Public Broadcasting<br />
and participate in real-time videoconferences<br />
with students in California.<br />
Connecting fiber to electric meters<br />
gives LUS the opportunity to install a<br />
smart-grid system, which is scheduled to<br />
be funded this year. The system will provide<br />
real-time usage information to customers,<br />
as well as outage management<br />
and electrical demand management capability<br />
for the utility itself. BBP<br />
EATEL keeps a waiting list of households that<br />
want to subscribe to FTTH services.<br />
also engages the attention of local media<br />
more effectively.<br />
Pre-marketing fiber is a useful strategy,<br />
Russell said. Before building fiber<br />
into a new portion of its territory,<br />
EATEL adds customers to a waiting<br />
list by offering discounts and assuring<br />
customers they will be connected<br />
sooner than their neighbors who haven’t<br />
preregistered. The waiting list helps the<br />
company decide where to build next and<br />
where to proactively place drop cables.<br />
After passing a neighborhood with fiber,<br />
the company shifts its marketing efforts<br />
to personalized letters, door hangers,<br />
yard signs and other traditional methods<br />
of signing up customers. To maintain<br />
relationships with existing customers,<br />
EATEL keeps them informed about<br />
community events by using social media<br />
such as Facebook and Twitter.<br />
Responding to the Downturn<br />
In the last two years, EATEL has encountered<br />
a series of challenges: The real<br />
estate market slowed down, cable competitors<br />
slashed prices and Hurricane<br />
Gustav wreaked $2 million worth of<br />
damage on the company’s plant. During<br />
the economic downturn, EATEL has<br />
increasingly focused its marketing mes-<br />
50 | BROADBAND PROPERTIES | www.broadbandproperties.com | November/December 2009
FTTH CONFERENCE COVERAGE<br />
sage on value. For example, to discourage<br />
customers from dropping their landlines,<br />
EATEL emphasizes that land lines<br />
provide more reliable 911 service – even<br />
getting an endorsement of this statement<br />
from the local sheriff.<br />
In response to the construction slowdown,<br />
EATEL launched a realtor incentive<br />
plan to help capture a higher percentage<br />
of whatever new development was<br />
occurring. “We didn’t get much traction<br />
with that in 2006, but now realtors are<br />
more interested,” Russell said.<br />
Realtors can earn commissions for<br />
helping sign up new FTTH customers<br />
and, especially, for upselling them to<br />
higher service tiers.<br />
Another strategy for the company is<br />
adding new revenue streams based on<br />
FTTH connections, including wireless<br />
in-home networking, home security and<br />
VoIP. EATEL is currently researching<br />
other potential new services.<br />
EATEL even turned Hurricane<br />
Gustav into a competitive advantage –<br />
and not only because the underground<br />
Marketing Fiber Services for Success<br />
As a traditional rural telco in central Tennessee, Twin<br />
Lakes Telephone Cooperative once had a traditional<br />
approach to marketing: “If they want something,<br />
they’ll call us.”<br />
That approach doesn’t work today, Jonathan West, the company’s<br />
assistant general manager, told the FTTH Conference.<br />
Because captive audiences aren’t captive anymore, telcos must<br />
proactively sell their services, especially if they want to recoup<br />
the costs of investment in next-generation services.<br />
Twin Lakes built out fiber in its service area because its copper<br />
plant was aging and in need of an upgrade, and the company<br />
thought fiber would be less costly to maintain than new<br />
copper. In addition, customers were demanding more bandwidth<br />
for Internet access, high-definition video and other new<br />
services, and a fiber network would position the community<br />
better for future needs and for economic development.<br />
“We couldn’t deliver all of this over copper,” West said.<br />
“Everyone wanted more than we could deliver.”<br />
Today, Twin Lakes offers telephone, high-speed Internet<br />
access and business services over its FTTH network, and it is<br />
actively planning for IPTV, wireless and security services. It is<br />
also launching a competitive subsidiary that will build fiber-tothe-home<br />
networks outside its traditional service area. Through<br />
a new program, the company is seeking alliances with valueadded<br />
resellers so it can enlarge the scope of its offerings.<br />
Internal and External Marketing<br />
To realize the potential of its new FTTH network, Twin Lakes<br />
decided to market the network to both employees and customers.<br />
The company hired two new marketing specialists, who<br />
have worked to get everyone on board with the new technology.<br />
Internally, the company publishes a newsletter to keep employees<br />
informed, and has invested in staff training.<br />
To get the word out to customers, Twin Lakes began sending<br />
customer service reps into the field along with the FTTH<br />
construction crews to presell the new network and new services.<br />
The company also works with builders and developers,<br />
explaining to them how fiber connections help sell houses. It<br />
makes presentations to the Chamber of Commerce highlighting<br />
its investment in the community, offers tours of its central<br />
office and maintains presences on Facebook and Twitter.<br />
lines in the newer parts of its service<br />
area were unaffected by the storm. It<br />
responded quickly to repair damaged<br />
plant and offered credits to customers<br />
who were without service.<br />
Following the hurricane, EATEL<br />
launched a well-received campaign to<br />
educate customers about attaching their<br />
battery backups to emergency generators.<br />
With automatic failover to a generator,<br />
customers will no longer lose<br />
telephone service even during extended<br />
power outages. BBP<br />
In contrast to EATEL’s Russell, who advocates “branding<br />
fiber,” West focuses on selling the services rather than the medium.<br />
He said upselling is critical; staff are trained not simply<br />
to take orders but to make sure customers buy all the services<br />
they need. Twin Lakes uses mystery shoppers to find out<br />
whether its sales reps upsell appropriately. It also markets proactively<br />
to cell sites and other high-bandwidth users. As a result<br />
of all these efforts, West said, Twin Lakes’ sales of broadband<br />
services have greatly exceeded expectations. BBP<br />
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November/December 2009 | www.broadbandproperties.com | BROADBAND PROPERTIES | 51
FTTH CONFERENCE COVERAGE<br />
Cable Operator Deploys Fiber to the Home<br />
When Sunflower <strong>Broadband</strong>, a rural cable provider<br />
serving northeastern Kansas, was ready to deploy<br />
fiber to the home in 2006, it examined all the available<br />
FTTH strategies. In the end, the company selected several<br />
different strategies for different applications.<br />
For its first deployment, which targeted business customers,<br />
Sunflower <strong>Broadband</strong> chose BPON technology. GPON would<br />
have been preferable, according to engineering manager Timothy<br />
Templeton, but Verizon, which was beginning its GPON<br />
deployment at the same time, had placed such large orders that<br />
GPON chips weren’t always available for smaller companies.<br />
By 2007, Sunflower was able to upgrade its business network<br />
from BPON to GPON.<br />
RFoG for Residential Areas<br />
For residential customers, Sunflower’s strategy was to deploy<br />
fiber only in new developments, except for two neighborhoods<br />
it overbuilt with fiber to compare with similar hybrid fiber/<br />
cable (HFC) neighborhoods. Sunflower chose RFoG for its<br />
residential build, a new technology that was compatible with<br />
its existing infrastructure. At rural densities of 10 to 30 homes<br />
per mile, fiber was actually 10 percent less expensive to install<br />
than copper, and operating expenses were also lower. Because<br />
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Sunflower had a large inventory of set-top boxes and modems,<br />
RFoG’s support for this equipment was a plus.<br />
Fiber has other advantages, too, Templeton said. Longer<br />
drop-cable lengths add flexibility to network planning. The<br />
absence of active equipment in the field means fewer points of<br />
failure, making the overall system more reliable. Finally, the<br />
relatively clean RF return path makes deploying DOCSIS 3.0’s<br />
advanced features easier – which means the company can offer<br />
higher data speeds and transition to IPTV in the future, once<br />
the content providers it deals with allow IP transmission.<br />
Fiber also had its downside, especially with the first generation<br />
of RFoG: Network interface units at the customer premises<br />
could not be remotely monitored, and there was no reliable<br />
method for powering the network.<br />
Lessons From the Deployment<br />
Although the company began by using unconnectorized drop<br />
cables, it soon found that crews had difficulty splicing cables in<br />
cold and wet weather and were incurring expenses for protecting<br />
splices from bad weather. To simplify the installation process,<br />
Sunflower has increasingly used preconnectorized drops.<br />
Because cable company headends are often farther away<br />
from customer premises than PON standards allow, Sunflower<br />
<strong>Broadband</strong>, like some other cablecos, typically deploys<br />
RFoG using remote OLTs in aboveground, environmentally<br />
hardened hubs in the field. A single fiber serves 256 customers;<br />
to split the fiber, the company employs cascading couplers, or<br />
taps, which use the 1550 nm wavelength more efficiently than<br />
other methods.<br />
For residences within 10 to 15 km of the headend, Sunflower<br />
decided to eliminate the remote OLT altogether and<br />
deploy a direct-feed architecture instead, using off-the-shelf receivers,<br />
transmitters and lasers. “We had to define the distances<br />
very carefully, or we’d lose light, especially on the return path,”<br />
Templeton said. The resulting system, however, is low cost and<br />
highly reliable.<br />
GPON for Student Housing<br />
Once GPON equipment was readily available and working<br />
well for business customers, Sunflower began to consider<br />
whether GPON would also make sense in residential applications.<br />
It concluded that GPON, even though more expensive<br />
than RFoG, could cost-effectively provide services in student<br />
housing (Lawrence is home to the University of Kansas). The<br />
company now supplies some student housing communities<br />
with GPON-based data and voice services, though for now it<br />
continues to deliver video over coax.<br />
Sunflower <strong>Broadband</strong> has plans to build out still more fiber<br />
to the home, and it applied to both RUS and the National Telecommunications<br />
and Information Administration (NTIA) for<br />
a fiber-to-the-home project under the broadband stimulus program.<br />
This “Fiber to the Prairie” program, if funded, will bring<br />
broadband services to underserved rural areas in two Kansas<br />
counties. BBP<br />
52 | BROADBAND PROPERTIES | www.broadbandproperties.com | November/December 2009
FTTH CONFERENCE COVERAGE<br />
Four Stimulus-Funding Applications<br />
RUS and NTIA rules “throw providers a bone,”<br />
giving them opportunities to serve rural towns if<br />
they also connect the outlying areas.<br />
The complex rules and definitions<br />
in the NTIA-RUS broadband<br />
Notice of Funding Availability<br />
(NOFA) left service providers scratching<br />
their heads in puzzlement. Were their<br />
service areas remote? Rural? Unserved?<br />
Underserved? Should they apply for<br />
loans or grants? RUS, NTIA, or both?<br />
To apply in the first funding window,<br />
providers had to answer these questions<br />
quickly and choose strategies that would<br />
give them a competitive leg up.<br />
Geoff Burke, marketing director at<br />
Calix, explained at the FTTH Conference<br />
how four Calix customers crafted<br />
their funding applications to meet these<br />
complex requirements, yielding insight<br />
into what the funding agencies were trying<br />
to achieve.<br />
Service Provider 1, a Midwestern<br />
CLEC, originally planned to build out<br />
fiber to two towns of 7,500 and 2,500<br />
households respectively. Although SP1<br />
considered these communities unserved,<br />
they were mostly served according to the<br />
NOFA’s low broadband threshold (768<br />
Kbps/256 Kbps). To become eligible for<br />
stimulus funding, SP1 proposed to cover<br />
only about 1,800 homes in the original<br />
target communities, adding about 550<br />
more homes in six small outlying areas.<br />
It constructed the service area somewhat<br />
artificially, stringing census blocks<br />
together so the overall area would have<br />
less than 40 percent broadband penetration<br />
and thus qualify as “underserved.”<br />
To get additional points for over-20<br />
Mbps service, it selected a GPON architecture.<br />
Burke commented that SP1’s<br />
apparent gerrymandering was precisely<br />
the result the agencies were hoping for:<br />
The NOFA, he said, “threw [SP1] the<br />
bone” of the town, a viable territory, so<br />
as to bring broadband to the unprofitable<br />
outlying areas.<br />
Service Provider 2, a Midwestern<br />
cooperative with both incumbent and<br />
competitive territories, saw an overbuild<br />
opportunity in a town of about 900<br />
homes. As in the first case, part of the<br />
town was served with broadband (by the<br />
NOFA standards) and part was not. SP2,<br />
however, included the entire town in its<br />
proposal by extending the borders of<br />
the proposed service area far outside the<br />
town – far enough for the unserved/underserved<br />
area to make up 75 percent of<br />
the total square mileage; it also selected<br />
GPON to provide over-20 Mbps service.<br />
Meeting the 75-percent standard qualified<br />
SP2 for a 50/50 loan/grant combination.<br />
Again, this achieves the agencies’<br />
goal of bringing broadband to outlying<br />
areas that would not have been viable<br />
without the anchor of the small town.<br />
Service Provider 3, a Midwestern<br />
cable television company serving an urban<br />
area, originally planned to expand<br />
its service area out into the suburbs with<br />
fiber-to-the-home infrastructure. Based<br />
on the NOFA, it skipped over the closein<br />
suburbs to select exurban, fringe areas<br />
containing about 5,000 households that<br />
could qualify as rural and underserved.<br />
Although this territory had no anchor<br />
town, its relative proximity to SP3’s urban<br />
territory made it a feasible choice.<br />
SP3 chose GPON because it could support<br />
RF video.<br />
Service Provider 4, an Eastern<br />
CLEC serving an urban area, was looking<br />
to expand its service to nearby urban<br />
areas. When the NOFA was issued,<br />
this provider changed its plans entirely.<br />
Instead, SP4 proposed a middle-mile<br />
project to bring fiber backbone from<br />
its original service area to two adjacent<br />
counties. It then proposed leveraging<br />
the middle-mile project to pick up 1,000<br />
rural, underserved households along the<br />
way and deliver GPON-based services<br />
to them. BBP<br />
November/December 2009 | www.broadbandproperties.com | BROADBAND PROPERTIES | 53
<strong>Broadband</strong> Is Good…<br />
But International Mileage<br />
May Vary<br />
The Federal Communications Commission (FCC) is looking for a bright<br />
economic line to justify broadband investments. The line is there, but<br />
guidance on the details is lacking.<br />
By Steven S. Ross ■ <strong>Broadband</strong> <strong>Properties</strong><br />
Many nations in widely varying<br />
situations have decided<br />
that broadband is good for the<br />
economy, but predicting the precise benefits<br />
of advanced broadband services is<br />
difficult, said conferees at the Columbia<br />
Institute for Tele-Information (CITI)<br />
Annual State of Telecom Conference in<br />
October.<br />
• Although studies confirm broadband’s<br />
value, the relationship between<br />
enhanced bandwidth and enhanced<br />
benefits is hazy. Raul Katz,<br />
director of business strategy research<br />
at CITI, said, “We do know there is<br />
an [economic] effect that is positive.<br />
We don’t know if there are diminishing<br />
returns for large amounts of<br />
broadband. Economic models tend<br />
to give you an early bump that then<br />
tails off. … We know that when we<br />
move from dial-up to DSL, etc., we<br />
get a bump.”<br />
• Simply passing a household with<br />
available bandwidth does not guarantee<br />
its adoption by individuals and<br />
families.<br />
• Different countries’ approaches to<br />
network regulation and subsidies are<br />
complex and often imperfectly understood<br />
beyond their borders.<br />
• Even when policies are well understood,<br />
other countries cannot replicate<br />
them. Jonathan Liebenau of the<br />
London School of Economics said,<br />
High-powered opening panel. Left to right: Scott Wallsten, FCC; Matthias Kurth, German Federal<br />
Network Agency; Derek Wyatt, Member of Parliament, U.K.; Bernard Benhamou, French Ministerial<br />
Delegate on Internet Usage; Andrew J. Haire, Singapore IDA; Patrik Sandgren, Sweden’s Post and<br />
Telecom Agency; Cezar Alvarez, Brazil’s Head of Cabinet.<br />
“We tried to replicate the U.S. findings<br />
in the U.K. It doesn’t work and<br />
it was naive to think it would work.<br />
Important details differ on [economic]<br />
multipliers. Also, the traderelated<br />
leakage [funds that end up in<br />
other countries to buy equipment,<br />
for instance] is quite different. Thus<br />
the U.K. gets less effect than does the<br />
U.S. Good productivity can replace<br />
work and create unemployment [for<br />
example, in the tourism industry and<br />
in IT]. The positive effect is greatest<br />
in operating but less-than-mature<br />
networks.”<br />
• Residential broadband does not<br />
increase productivity very much,<br />
Leonard Waverman, dean of the<br />
About the Author<br />
Steve Ross is corporate editor of BBP LLC. You can reach him at steve@broad<br />
bandproperties.com.<br />
54 | BROADBAND PROPERTIES | www.broadbandproperties.com | November/December 2009
Country<br />
Stimulus<br />
Investment<br />
(USD Million)<br />
Jobs Expected<br />
From Stimulus Investment in Telecom Networks<br />
Network Deployment Jobs Estimate<br />
Direct Jobs Indirect Jobs Induced Jobs Total (Direct +<br />
Indirect) /<br />
Direct<br />
Multipliers<br />
(Direct + Indirect<br />
+ Induced) /<br />
Direct<br />
$6,390 37,000 31,000 60000 128,000 1.83 3.42<br />
Switzerland ~$10,000 ~80,000 ~30,000 NA ~110,000 1.38 NA<br />
Germany $47,660 281,000 126,000 135,000 542,000 1.45 1.94<br />
United Kingdom $7,468 76,500 134500 211,000 NA 2.76<br />
Australia $31,340 NA NA NA ~200,000 NA NA<br />
Source: Raul Katz, CITI<br />
Haskayne School of Business in Calgary,<br />
said. “Maybe it helps B-to-C<br />
commerce,” he added. He used firstdifferences<br />
regression to try to tease<br />
out causation from his 15-country<br />
data set, and didn’t see much effect.<br />
• Heather Hudson, professor of telecommunication<br />
at the University of<br />
San Francisco, looked at telecom’s<br />
role in rural and less-developed<br />
countries’ development. She showed<br />
a fiber trench being dug in Tanzania,<br />
where 37 of the 130 administrative<br />
centers are now connected by fiber,<br />
thanks to a Chinese-funded project.<br />
“But what is the quality of service?”<br />
she asked. “And what is the sustainability<br />
after the one-time funding<br />
goes away?”<br />
• Wireless is an important component<br />
of any national bandwidth enhancement<br />
plan, but alone it cannot handle<br />
the bandwidth, reliability and<br />
security that business demands. In<br />
the United States, AT&T Wireless<br />
has had trouble keeping up with the<br />
50-fold growth in wireless data traffic<br />
brought about by the iPhone. The<br />
inadequacy of the spectrum assigned<br />
to mobile communications also imposes<br />
physical limits on bandwidth<br />
growth.<br />
• Wireless can be a useful wedge to entice<br />
those on the far side of the digital<br />
divide to make their first leaps<br />
onto the Internet.<br />
What is not hard to predict is bandwidth<br />
demand. Said Robert Pepper, vice<br />
president for global technology policy<br />
at Cisco, “By 2014, just 50 U.K. homes<br />
will generate as much traffic as the entire<br />
U.S. Internet backbone in 1995.”<br />
Hurdles for<br />
<strong>Broadband</strong> Policy<br />
CITI founder Eli Noam noted that as<br />
part of its economic stimulus program,<br />
“Australia wants to create a state [network<br />
company] and then privatize it,”<br />
at a total cost of $23 billion, or about<br />
$5,000 per home. But, Noam asked,<br />
“How does the monopoly set its wholesale<br />
prices, stay technologically advanced<br />
and privatize while keeping prices low?<br />
This is a very ambitious plan with no<br />
clear end points.”<br />
Korea, Noam noted, has a stated goal<br />
of 100 Mbps per household, but dominant<br />
telco KT “is guaranteeing only 1<br />
Mbps and [providing] … closer to 2–3<br />
Mbps.” The Korean government wants<br />
a 30 Mbps guarantee, but to do that<br />
requires a peak capacity of 1 Gbps, he<br />
said. “So when you hear 1 Gbps there,<br />
it is not real.”<br />
Japan has the highest broadband<br />
penetration and lowest economic<br />
growth among OECD nations. Korea<br />
also has low productivity growth and<br />
high broadband penetration, one questioner<br />
noted. But what if Japan and Korea<br />
didn’t have broadband? Would their<br />
economic growth have been even lower?<br />
Said one Japanese scholar, “Japan is an<br />
information society but [the Japanese]<br />
do not have a [historical] context to<br />
make software. Now Japan is exporting<br />
$5 billion worth of software a year; expect<br />
it to be $20 billion in 2020.”<br />
Confusion was not limited to other<br />
nations. “In this administration, there<br />
are so many czars it is like a Romanov<br />
family picnic,” Noam quipped. Scott<br />
<strong>Broadband</strong> Impact as a Percentage of GDP<br />
In Europe, 2006-2007<br />
Source: MICUS<br />
Advanced-knowledge sociees<br />
EU 27<br />
Large industrial economies<br />
Quickly developing economies<br />
Less developed broadband<br />
0.47%<br />
0.63%<br />
0.71%<br />
0.70%<br />
0.89%<br />
0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 0.60% 0.70% 0.80% 0.90% 1.00%<br />
The impact of broadband is greatest in the most advanced countries; 70 percent of net job creation<br />
related to broadband is due directly to innovation.<br />
November/December 2009 | www.broadbandproperties.com | BROADBAND PROPERTIES | 55
Wallsten, economics director of the<br />
adoption group for the FCC’s Omnibus<br />
<strong>Broadband</strong> Initiative, said that to<br />
achieve gains in productivity and in<br />
adoption of information technology by<br />
various business sectors, “you need a<br />
mix of infrastructure and organizational<br />
investments.” That is, one cannot simply<br />
budget for fiber and hope for the best.<br />
Hudson noted that, even in the<br />
United States, telemedicine has not always<br />
been sustainable because insurance<br />
companies would not pay for remote<br />
consultations; Medicare does reimburse<br />
such consultations now.<br />
“The government has tradeoffs [in<br />
spending limited funds] and thus cannot<br />
[afford to] make mistakes,” Wallsten<br />
said. He added that the government<br />
would try to increase wireless spectrum<br />
either by allocating more or by making<br />
secondary markets work better. (There<br />
are opportunities for increasing the<br />
amount of spectrum that changes hands<br />
in third-party transactions.) Wallsten<br />
also admitted that the Universal Service<br />
Fund, which is intended to make<br />
telecommunications affordable for lowincome<br />
and rural residents, “is not sustainable<br />
at all – it is voice-only and is<br />
a high tax, [yet there is] a large digital<br />
divide and the biggest gap is by income.”<br />
This tax is counterproductive, he said.<br />
The FCC is scheduled to issue a new<br />
universal service funding plan in February,<br />
but despite prodding from Noam,<br />
Wallsten would not offer details. He said<br />
only that separate groups are working on<br />
the smart grid, telemedicine, broadband<br />
adoption rates and so forth.<br />
Matthias Kurth, president of Germany’s<br />
Federal Network Agency<br />
(roughly equivalent to the chairman of<br />
the FCC in the United States), said that,<br />
in his country, “the goal is 1 Mbps universal<br />
service” with a “second step [to]<br />
50 Mbps by 2014.” But, he noted, the<br />
economic pathway to that goal, even at<br />
this late date, is not well marked.<br />
Said Kurth, “Norway has great<br />
[broadband] penetration but the usage<br />
is poor. We believe we should not kill<br />
the private sector; there is necessity for<br />
public investment, but only in [rural]<br />
areas that cannot have competitive private<br />
investment.” Kurth also notes that<br />
in Germany, as in much of Europe, governments<br />
strive to be neutral between<br />
fixed and wireless options. “We cannot<br />
predict where [fixed/mobile convergence]<br />
is going,” he said, adding that the<br />
economic impact of different broadband<br />
technologies was also hard to predict,<br />
except in broad generalities.<br />
UK REACHES ACROSS DIVIDE<br />
Derek Wyatt, a member of the British<br />
Parliament and co-chair of its All Party<br />
Communications Group, asked, “What<br />
are we going to do about the 30 percent<br />
[in the U.K.] who have not taken<br />
up broadband?” Wyatt said he expected<br />
Parliament to enact a commitment to<br />
achieving universal 2 Mbps broadband<br />
by 2012. He called that “rather low<br />
and rather late,” citing a new PricewaterhouseCoopers<br />
(PwC) study for a<br />
government-funded nonprofit organization,<br />
Digital Inclusion, whose mission is<br />
reducing the digital divide in the U.K.<br />
(The full report is online at www.raceonline2012.org.).<br />
PwC estimated the<br />
economic benefit of getting everyone in<br />
the U.K. online at as much as £22 billion<br />
(close to $40 billion).<br />
PwC estimated that more than 10<br />
million adults in the U.K. have never<br />
used the Internet – and that 4 million<br />
of that group are “socially excluded,”<br />
that is, not working. Of these 4 million<br />
adults, 39 percent are over 65 years old,<br />
38 percent are able to be in the workforce<br />
but are unemployed and 19 percent<br />
are in families with children. PwC<br />
NTIA Administrator Says<br />
Government Has <strong>Broadband</strong> Role<br />
National Telecommunications and Information Administration (NTIA) Administrator<br />
Lawrence Strickling reported on the status of broadband planning efforts in<br />
the United States, citing “the importance of broadband to our economic development;<br />
the commitment of the [Obama] administration to Internet assurance [access<br />
to the Internet]; and the role of telecommunications in creating a transparent<br />
and connected government.”<br />
The current economic crisis, he said, “has led to cutbacks in innovation, counteracted<br />
by the stimulus package.”<br />
The situation requires more than funds for deployment, he said. NTIA also seeks<br />
to “promote building blocks of innovation [with the] largest increase in R&D, new<br />
infrastructure, education [and an] advanced technology ecosystem that includes<br />
providing all Americans with access to broadband.” He added that the broadband<br />
access mapping effort had not attracted a lot of interest, although four grants (for<br />
mapping in California, Indiana, North Carolina and Vermont) had been awarded.<br />
Strickling noted the “last mile/middle mile tension” among grant applications<br />
for the first round of stimulus funds. “If we focus public dollars on the middle mile,<br />
how certain are we that last-mile providers will materialize? What about connecting<br />
anchor institutions like schools and libraries?<br />
“We’re trying to avoid funding bad projects. ... [We’re looking for a] comprehensive<br />
community approach to fund public/private partnerships, anchors, commitments<br />
to engage end-user services, [and ways to] provide lessons for other<br />
projects down the road.<br />
“On the adoption side we have $250 million at least. These are one-time deals,<br />
not a subsidy program. Can we spend a dollar once and get people to adopt?” He<br />
cited the latest Pew Research Center surveys suggesting that this strategy can work;<br />
Pew found that half the people not adopting are unfamiliar with the technology.<br />
Strickling admitted that the need to get money out quickly has somewhat<br />
trumped the desire to coordinate funding to address various national needs. “We<br />
joined the USDA [rural] and NTIA [urban, underserved] programs, and are also<br />
working with others like health [programs] – but the programs are different,” he<br />
said. “The health folks have not picked their communities and seem to be on a later<br />
schedule than us.” The Department of Energy, on the other hand, handed out its<br />
smart-grid grants before the broadband funding started.<br />
56 | BROADBAND PROPERTIES | www.broadbandproperties.com | November/December 2009
assigned little of the positive predicted<br />
impact to direct economic growth, however.<br />
It calculated that<br />
• The 1.6 million children in digitally<br />
excluded families could increase<br />
their lifetime earnings by £10.8 billion<br />
(about $20 billion – by far the<br />
largest impact).<br />
• Digitally excluded households are<br />
missing out on average savings of<br />
£560 million (close to $1 billion) per<br />
year from shopping and paying bills<br />
online.<br />
• The most economically disadvantaged<br />
families are missing out on savings of<br />
over £1 billion (roughly $2 billion) in<br />
the prices of items they buy.<br />
• Unemployed adults who get online<br />
for training or job search – or almost<br />
anything else – could increase their<br />
lifetime earnings by over £12,000<br />
each (about $20,000, a surprisingly<br />
small amount).<br />
• If 3.5 percent of the digitally excluded<br />
unemployed could find work by using<br />
employment Web sites, the U.K.<br />
economy would grow by an estimated<br />
£560 million (close to $1 billion).<br />
• Internet-savvy workers can increase<br />
their lifetime earnings by an average<br />
of over £8,000 ($13,500).<br />
• Government could save at least £900<br />
million ($1.5 billion) a year in customer<br />
contact costs if all digitally excluded<br />
adults got online and made just<br />
one electronic contact per month.<br />
Wyatt said, “We don’t have enough<br />
trained volunteers to reach the 4 million<br />
families who are not online. We are<br />
thinking of giving them a netbook and<br />
a free connection [to the Internet] for a<br />
year.” But even that might not work. The<br />
educational outreach centers in the U.K.<br />
are often in pubs and village halls, Wyatt<br />
said, and “many of the 4 million not online<br />
cannot read and write.”<br />
Framework for assessing economic benefits of greater digital inclusion in the U.K.<br />
FRANCE SEES GOVERNMENT<br />
FUNDS NECESSARY<br />
Bernard Benhamou, ministerial delegate<br />
on Internet usage for France’s Ministry<br />
of Higher Education and Research and<br />
the State Secretariat for Digital Economy,<br />
said that inclusion is a European<br />
priority. In France, he said, 96 percent<br />
of connected people use broadband. Although<br />
mobile phones are changing the<br />
way users – especially new users – use<br />
the Internet, the potential for economic<br />
growth justifies government involvement<br />
in FTTH. “Fiber optics in France is supposed<br />
to cost 40 billion euros [about $60<br />
billion, or about $3,000 per household],<br />
so the market cannot do all of this.”<br />
Benhamou said the government is<br />
“working on the next evolution of the<br />
Internet to be used by objects – not<br />
just phones, computers and televisions.”<br />
Little of that effort, if any, is reflected<br />
in estimates of future economic benefits,<br />
he said.<br />
Benhamou also noted that in Europe,<br />
there is “more planning for smart metering,<br />
more work with smaller enterprises<br />
to conserve energy.” That, in turn, leads<br />
to higher calculations of economic benefit<br />
for broadband network connections.<br />
Singapore and Beyond<br />
Andrew J. Haire, deputy director general<br />
(for telecoms and post) for Singapore’s<br />
Infocomm Development Authority, said<br />
that when he arrived in Singapore about<br />
10 years ago, interest in network infrastructure<br />
development was huge. As late<br />
as 2004, however, broadband in Singapore<br />
meant mainly DOCSIS – “and we<br />
knew it would be outstripped,” he said.<br />
“But about five years ago, [interest<br />
shifted] to services … and we are now a<br />
service-oriented market.” Singapore has<br />
November/December 2009 | www.broadbandproperties.com | BROADBAND PROPERTIES | 57
Impact of digital inclusion on education for children in the U.K.<br />
about 2 million households and is the<br />
second most densely populated nation<br />
in the world, after tiny Monaco. It is<br />
also a worldwide Internet hub. “We had<br />
200,000 Gbps of international bandwidth<br />
connectivity by 2007; it has doubled<br />
in the past two years,” Haire said.<br />
The government of Singapore felt<br />
that bringing more bandwidth to end users<br />
would be economically justified and<br />
launched a next-generation broadband<br />
project. It is ahead of schedule with the<br />
project, which will bring 1 Gbps to 100<br />
percent of Singapore households by the<br />
end of 2012. Each home gets two dark<br />
fibers.<br />
The idea was to jump-start the private<br />
sector with public funds. “We put<br />
$650 million USD on the table. If you<br />
Lawrence Strickling, NTIA Administrator.<br />
are the incumbent and the government<br />
puts money on the table, you have to<br />
take it or the money funds a competitor.<br />
We asked for universal coverage by<br />
2015, with no control on an existing<br />
licensee. Singtel offered to break themselves<br />
up to qualify for the bid,” Haire<br />
said. The government money is at most a<br />
20 percent capital subsidy for the build,<br />
but that was enough (in a project that<br />
kicked off before the global economic<br />
downturn) to make the idea attractive<br />
to private investors.<br />
Singapore decided to apply different<br />
regulation to four network layers:<br />
• wholesale passive layer<br />
• active electronic layer<br />
• retail broadband services<br />
• end user services.<br />
“The rationale is<br />
that the active and passive<br />
layers have different<br />
risk factors,” said<br />
Haire. “We see more<br />
competition at the active<br />
layer.”<br />
Patrik Sandgren, of<br />
Sweden’s Post and Telecom<br />
Agency’s Strategy<br />
and Communication<br />
Department, reiterated<br />
his country’s preference<br />
for public/private partnerships.<br />
The government<br />
has documented<br />
more growth in cities<br />
with FTTH than<br />
elsewhere, perhaps due<br />
to the wide variety of services available<br />
on open-access FTTH networks rather<br />
than to raw bandwidth per se. In fact,<br />
Sweden’s central government pushes<br />
communities to adopt broadband so<br />
that the government can deliver services<br />
to them more easily.<br />
A new Swedish broadband strategy is<br />
due by year-end (Sweden has been waiting<br />
for the European Union to issue its<br />
new IT agenda, which was still due at<br />
press time). The whole country has mobile<br />
broadband, and FTTH passes about<br />
35 percent of households. Only 4,400<br />
Swedish households have no broadband<br />
access, and 117,000 households have<br />
broadband with speeds below 2 Mbps.<br />
Cezar Alvarez, who as head of President<br />
Lula da Silva’s cabinet is responsible<br />
for Brazil’s broadband plan, said<br />
that in Brazil, too, bandwidth follows<br />
money. The impoverished Northeast is<br />
not as well served as the more prosperous<br />
South and Southeast, which have<br />
57 percent of Brazil’s population but 81<br />
percent of the connections.<br />
Nevertheless, Brazilian incumbent<br />
carriers provide broadband service free<br />
to almost all the nation’s 55,000 public<br />
schools, as a condition of their licenses.<br />
The government expects this schoolbased<br />
broadband to help address the<br />
digital divide by increasing all children’s<br />
familiarity with the Internet.<br />
Models for Public-Private<br />
Partnership<br />
Dan Reingold of CITI asked, “Everyone<br />
assumes that public funding is a<br />
stimulus to private funding, but are you<br />
crowding out private money or disincentivizing<br />
it by putting too much supply on<br />
the market, or competition, or too much<br />
regulation?”<br />
A. Reza Jafari, chairman of the International<br />
Telecommunication Union<br />
Telecommunication Standardization<br />
Sector (ITU-T) and CEO of E-Development<br />
International, said that the developing<br />
world can teach the developed<br />
world about public-private partnership.<br />
“Private companies do not get money<br />
without restrictions,” he said. “They<br />
share the risk and the reward.”<br />
Jafari also noted that thinking<br />
changes. “We kept saying that if you<br />
58 | BROADBAND PROPERTIES | www.broadbandproperties.com | November/December 2009
don’t own it, you can’t control it. In the<br />
United States, everyone had their own<br />
messaging system. But you can create an<br />
incentive to encourage interoperation<br />
and sharing and thus save money and<br />
create a new economic model.”<br />
Carlos Lopez Blanco, director of<br />
Telefónica’s International Office, noted<br />
that there is a 1 billion euro ($1.5 billion)<br />
stimulus package in the European Union<br />
for next-generation networks. “We may<br />
not need a revolution in regulation, but<br />
certainly [we need] a big change,” he said.<br />
“We see a critical role for mobile broadband.<br />
We need to make investments in<br />
cost-effective ways. It is difficult for us [in<br />
Spain] to understand why public funds<br />
should be used for FTTx in Paris!”<br />
Lorenzo Pupillo, executive director<br />
for public and economic affairs at Telecom<br />
Italia, said he saw a “significant economic<br />
growth impact” for broadband<br />
deployment, citing a World Bank report<br />
(see “<strong>Broadband</strong> and the Economy: The<br />
Big Picture in Short” in this issue). In<br />
June, Italy issued a plan calling for 1.47<br />
billion euros ($2.2 billion) in broadband<br />
spending, including 800 million euros<br />
in public funds. The bill passed, but no<br />
money has been appropriated yet.<br />
Lisa Rosenblum, senior vice president<br />
for regulatory and legal affairs at Cablevision’s<br />
telephony and data services division,<br />
said, “We are in a competitive market [in<br />
New York, New Jersey and Connecticut],<br />
and it has all been private money. We<br />
spent $5 billion, and Verizon and AT&T<br />
are overbuilding us. So is there really any<br />
need for public resources to be invested<br />
here? Early on we said maybe a 20 percent<br />
tax credit is a good idea, but can it be<br />
justified in a market like ours?<br />
“Targeting aid is OK. We serve the<br />
Bronx and Brooklyn, which are economically<br />
challenged, and we see high adoption<br />
rates because the value and triple<br />
play has improved so much.” But Cablevision,<br />
she admitted, is “partnering with<br />
the city on its stimulus proposal, going<br />
into schools to push adoption.”<br />
BROADBAND’S IMPACT IN EUROPE<br />
Martin Fornefeld of MICUS Management<br />
Consulting, a German consulting<br />
firm, discussed a study on broadband<br />
impacts in Europe that he co-authored<br />
Impact of digital inclusion on employment and education for adults in the U.K.<br />
for the EU Commission in 2006–7. He<br />
suggested that previous studies often<br />
looked in the wrong place, at the impacts<br />
on telecom itself. But, according<br />
to the MICUS report, the broader economy<br />
gains more than three euros for every<br />
euro earned by telecom companies’<br />
broadband operations.<br />
The report also says that the impact<br />
has been greater in Europe’s advanced<br />
knowledge societies (0.89 percent extra<br />
GDP growth since 2006 in Scandinavia,<br />
Austria, the Netherlands and Belgium)<br />
than in central Europe (0.47 percent)<br />
or even in quickly developing countries<br />
such as Portugal, Ireland and the Czech<br />
Republic (0.63 percent).<br />
To arrive at that conclusion, MICUS<br />
used mainly data collected by the European<br />
Commission and by Eurostat on<br />
development of broadband infrastructure,<br />
readiness of the population to use<br />
broadband-based technologies, IT skills,<br />
affinity toward new technologies in general,<br />
and even awareness of broadband’s<br />
benefits. MICUS also looked at the integration<br />
of broadband-based services<br />
into companies’ processes. Two regions,<br />
Cornwall (U.K.) and Piedmont (Italy)<br />
were also examined in close detail.<br />
Just four years after Cornwall started<br />
its Actnow program, it has experienced<br />
10 percent more annual growth and 7<br />
percent more productivity growth per<br />
year in business services than in the rest<br />
of the U.K. Two years after the start of<br />
the WI-PIE program in the Piedmont,<br />
Italy reported 9 percent progress per<br />
year, on average, in regional broadbandrelated<br />
economic indicators.<br />
Unfortunately, the study cannot distinguish<br />
between FTTH and other, less<br />
capable, broadband technologies such as<br />
ADSL, VDSL, cable modem, wireless,<br />
satellite and broadband over powerline.<br />
But the data from Europe clearly show<br />
positive impacts on productivity, growth<br />
and employment levels.<br />
There are so many variables – the<br />
report covers 27 national governments –<br />
and so short a baseline (FTTH has been<br />
commonly deployed in Europe for only<br />
three years and ADSL for five) that teasing<br />
out an answer to the key question, “If<br />
broadband is good, is a lot of broadband<br />
better?” is not possible. Europe loses 1.3<br />
million jobs a year in traditional sectors<br />
of its economy while gaining 1.4 million<br />
in dynamic sectors. The difference,<br />
more than 100,000 jobs a year, increases<br />
European GDP by about 82 billion euros<br />
($150 billion) a year, or 0.71 percent.<br />
That’s certainly a lot of cash, but small<br />
compared with the overall economy.<br />
The results do suggest that money<br />
devoted to improving businesses’ broadband<br />
adoption rates is well spent.<br />
Where does this leave us? Wishing<br />
for more subnational, fine-grained studies<br />
of the kind performed in the United<br />
States, suggested Nico Grove of the Munich<br />
School of Management, and placing<br />
educated bets on broadband funding<br />
generally and FTTH in particular.<br />
Bets are bets – not a sure thing. But<br />
the downside seems minimal and the<br />
upside almost unlimited. BBP<br />
November/December 2009 | www.broadbandproperties.com | BROADBAND PROPERTIES | 59
Brazil and the Digital Divide<br />
CITI chair Eli Noam.<br />
%<br />
Households<br />
TV<br />
Mobile<br />
Phone<br />
PC<br />
Internet<br />
More than $32,500<br />
10.7% 99.8% 95.7% 82.2% 74.5%<br />
(10X minimum)<br />
More than $16,250 (5 to 10X) 17.2% 99.2% 89.0% 55.6% 43.5%<br />
More than $6500 (2 to 5X) 37.6% 96.0% 75.1% 23.1% 14.9%<br />
More than $3250 (1 to 2X) 19.6% 95.0% 57.9% 7.1% 3.6%<br />
Less thn $3250 (Less than 1X) 14.5% 88.7% 41.9% 4.7% 2.7%<br />
Full sample<br />
96.7% 72.3% 29.9% 22.7%<br />
(47,983 households)<br />
Source: Mario Ripper<br />
Household annual income correlates strongly with Internet connectivity. Note the particularly sharp<br />
falloff below 5X minimum household income.<br />
Telecom Investment Per Capita<br />
(Not Including Internal Corporate WANs)<br />
Source: OECD 2009<br />
300<br />
250<br />
200<br />
USA<br />
Japan/Korea<br />
EU-15<br />
Germany<br />
US$<br />
150<br />
100<br />
50<br />
2003 2004 2005 2006 2007<br />
Per capita telecom investment in the United States is high compared with<br />
other OECD countries.<br />
Left to right: Dan Reingold, CITI (standing); A. Reza Jafari, ITU-T chairman<br />
and CEO of E-Development International; Carlos Lopez Blanco, Telefónica;<br />
Lorenzo Pupillo, Telecom Italia; Lisa Rosenblum, Cablevision; Ellen Blacker,<br />
AT&T; Reinhard Wieck, Deutsche Telekom.<br />
Bob Atkinson, CITI, standing; Raul Katz,<br />
CITI; Jonathan Liebenau, London school<br />
of Economics; Martin Fornefeld, MICUS;<br />
Leonard Waverman, University of Calgary;<br />
Chris Boam, Verizon; Heather Hudson,<br />
University of San Francisco.<br />
Estimated economic benefits of improved<br />
educational attainment through greater<br />
digital inclusion of children.<br />
Source: PwC analysis<br />
60 | BROADBAND PROPERTIES | www.broadbandproperties.com | November/December 2009
Impact of digital inclusion on<br />
health and well-being.<br />
Potential service transformation benefits of<br />
digital inclusion for the public sector.<br />
Potential service transformation benefits of<br />
digital inclusion for the citizen.<br />
November/December 2009 | www.broadbandproperties.com | BROADBAND PROPERTIES | 61
In a Remote County, FTTH Is<br />
A Lifeline to the World<br />
For Cook County, Minn., fiber to the home represents the best hope for<br />
keeping isolated communities viable.<br />
By Masha Zager ■ <strong>Broadband</strong> <strong>Properties</strong><br />
If there were a prize for the most remote<br />
area in the United States, Cook<br />
County would be in the running.<br />
About 5,000 people, or four per square<br />
mile, live in this northeastern corner of<br />
Minnesota, with Ontario to the north<br />
and Lake Superior to the east. There is<br />
only one town – the county seat, Grand<br />
Marais – and only one industry, tourism.<br />
Half the county is under water, ninetenths<br />
of the dry land is owned by the<br />
federal or state government and winter<br />
temperatures routinely drop to 30 below<br />
zero. The closest city of any size, Duluth,<br />
is more than 100 miles away.<br />
The Internet was slow to reach Cook<br />
County. Until 1995, when community<br />
members founded a cooperative ISP, not<br />
even dial-up service was available. Today,<br />
except for small pockets of wireless<br />
and DSL access, most of the county still<br />
has no broadband, and the condition of<br />
the telephone network is so poor that<br />
dial-up speeds are often limited to 10 to<br />
20 Kbps. The Minnesota Ultra High-<br />
Speed <strong>Broadband</strong> Task Force called<br />
Cook County the most underserved<br />
county in the state.<br />
No <strong>Broadband</strong>, No Visitors<br />
Despite the cold and the remote location,<br />
Cook County residents were able<br />
to eke out good livings, because the<br />
county’s spectacular scenery and its<br />
recreational opportunities – kayaking,<br />
climbing, hiking and more – drew summer<br />
visitors. But as the world became<br />
more connected, the costs of isolation<br />
grew steeper and the county’s economic<br />
future began to look bleak.<br />
According to county IT director<br />
Danna MacKenzie, hotels, inns and<br />
Without broadband, the residents of Cook<br />
County are becoming increasingly isolated.<br />
lodges report that guests are no longer<br />
willing to stay in places without broadband,<br />
and that college students will not<br />
take summer jobs if it means losing touch<br />
with the world. The owners of these accommodations<br />
cannot participate in online<br />
booking systems, offer video tours,<br />
order goods online or do their banking<br />
online. As commerce moves to the Web,<br />
they are increasingly shut out.<br />
Second-home buyers, too, hesitate to<br />
buy in the area. Local realtors say many<br />
sales have fallen through when potential<br />
buyers learned they could not obtain<br />
broadband. For example, a pair of Mayo<br />
Clinic doctors looking for a summer<br />
home showed interest in a Cook County<br />
house until they realized they could<br />
never work remotely.<br />
Cook County natives who have<br />
moved to the Twin Cities often inquire<br />
about returning to the place where they<br />
grew up, now that their employers – insurance<br />
companies or other large corporations<br />
– have seen the benefits of telecommuting<br />
and are willing to let them<br />
work from anywhere. “I get calls about<br />
that frequently,” MacKenzie says. “It’s increasingly<br />
common in the last two years.”<br />
She has to tell them they can’t do it.<br />
No <strong>Broadband</strong>, No Services<br />
The residents of Cook County are becoming<br />
more isolated while the rest of<br />
the country becomes more connected.<br />
In-person services that they once took<br />
for granted are disappearing. The state<br />
government is consolidating health care<br />
services to save costs, which means that<br />
residents (and visitors) will have to drive<br />
more than 100 miles each way for anything<br />
more than a routine medical appointment.<br />
The state is also centralizing<br />
the courts, making access to the legal<br />
system more difficult for residents.<br />
The antiquated telephone network is<br />
cutting people off from the world and<br />
making life more difficult and dangerous.<br />
Local businesses lost 21 days of<br />
telephone service last spring, MacKenzie<br />
says – three weeks when they couldn’t accept<br />
reservations, issue permits, or even<br />
call 911. During a recent forest fire, the<br />
Forest Service could not secure enough<br />
bandwidth for emergency cell phone<br />
coverage for first responders. The local<br />
clinic has trouble communicating medical<br />
records to its satellite offices and had<br />
to locate its H1N1 flu vaccination clinic<br />
in one of the few broadband-enabled<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 />
62 | BROADBAND PROPERTIES | www.broadbandproperties.com | November/December 2009
areas because the CDC requires that records be kept online.<br />
“Just a couple of years ago they came around with paper folders,”<br />
MacKenzie says.<br />
The media, too, are abandoning Cook County. The regional<br />
newspaper terminated home delivery last year. Broadcasters<br />
failed to rebuild in the area after the conversion to<br />
digital signals. Without over-the-air television news, residents<br />
have no access to emergency information or information about<br />
weather-related closings.<br />
Even the few high-speed links with which Cook County<br />
compensated for its isolation are becoming obsolete.<br />
MacKenzie reports that an acquaintance with a medical emergency<br />
waited over an hour to get advice from the Duluth hospital<br />
about stabilizing treatment, because of the time needed to<br />
transmit medical images.<br />
Innovative education and health programs also require upgraded<br />
connections. For 10 years, Cook County Higher Ed<br />
(a private agency, despite the name) has partnered with community<br />
colleges and universities to provide distance education<br />
for nurses and hospitality managers, but today, as MacKenzie<br />
puts it, “Our one T1 line doesn’t quite cut it.” Similarly, a pilot<br />
program for remote psychotherapy succeeded as a proof of concept,<br />
but the quality of the video was so poor that the program<br />
cannot be expanded without more bandwidth.<br />
Fiber to the Rescue<br />
When Cook County officials realized a countywide fiber-tothe-premises<br />
network would enable residents to continue living<br />
and doing business in the county, they began planning to<br />
build one. Earlier this year, they completed a feasibility study<br />
(as reported in the April issue of this magazine) and conducted<br />
a survey in which 90 percent of residents said they would subscribe<br />
to a local telecom provider and another 8 percent said<br />
they would consider subscribing. Business owners also strongly<br />
support the FTTP initiative. In a November referendum, voters<br />
approved a sales tax to help pay for the network and authorized<br />
the county to construct a telephone exchange.<br />
In August, the county applied for an RUS grant under the<br />
ARRA broadband-stimulus program to finance those portions<br />
of the network that are in completely unserved areas; as of this<br />
writing, RUS had not ruled on the application.<br />
The project will be carried out through a public-private<br />
partnership. The county will own the infrastructure; Arrowhead<br />
Electric, a local electric cooperative, will build and operate<br />
the network; and Boreal Access, the local ISP cooperative,<br />
will provide the video, voice and data services.<br />
More Bang for the Buck<br />
“I really believe we will see a bigger bang for the buck than the<br />
average,” MacKenzie says. “It will make all these services accessible.”<br />
Cook County Higher Ed will finally be able to upgrade<br />
its distance-learning programs. Other educational services will<br />
benefit, too, including the program that helps keep alive Anishinabe,<br />
the language of the local Grand Portage Indian tribe.<br />
The school district will be able to train high-school students in<br />
videography, giving them a salable skill and allowing them to<br />
produce local content for the network’s video service.<br />
The local public radio station will use the network to alert<br />
residents about evacuating the area during forest fires. The<br />
clinic will expand its electronic medical records system to remote<br />
locations, including the Grand Portage Reservation. And<br />
residents with medical emergencies will be able to get real-time<br />
help from the hospital in Duluth without waiting in anguish<br />
for medical records to download.<br />
With high-speed broadband available throughout the county,<br />
the tourist industry should rebound. MacKenzie expects to see a<br />
rise in telecommuting, and she hopes the area will attract young<br />
entrepreneurs who want to start home-based tech businesses and<br />
also go rock climbing and kayaking on the weekends.<br />
Unlike many municipalities, Cook County isn’t looking for<br />
a lot of economic development – residents don’t want to spoil<br />
the character of the place. It needs just enough to keep the<br />
region alive.<br />
MacKenzie says, “People sometimes make the argument<br />
that you have to make choices” – meaning that those who<br />
want to live in a remote and beautiful place should expect to<br />
give up certain perks of civilization. “That’s true to a certain<br />
extent,” she says. “But this community is a treasure for all of<br />
Minnesota. Some people need to be living here to provide services.<br />
The people who visit here want medical and hospitality<br />
services. We just need to maintain a balance so it can remain<br />
stable.” BBP<br />
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November/December 2009 | www.broadbandproperties.com | BROADBAND PROPERTIES | 63
The Impact of Genuine<br />
<strong>Broadband</strong> on Australia<br />
Australia’s next-generation network could add 1.4 percent to the country’s<br />
gross domestic product, according to a forecast by a private consulting firm.<br />
<strong>Broadband</strong> competition would improve the cost-benefit ratio for the public.<br />
This article is excerpted from a report by<br />
The Centre for International Economics<br />
(CIE, www.thecie.com.au), an<br />
economic consulting firm in Australia. A<br />
longer version was presented at the <strong>Broadband</strong><br />
World Australia 2008 conference.<br />
Since this report was first published, the<br />
Australian government has revised its National<br />
<strong>Broadband</strong> Network proposal to include<br />
100 Mbps fiber-to-the-home access<br />
in most parts of the country.<br />
Widespread access to and use of<br />
genuine broadband – that is,<br />
fast and accessible broadband<br />
– is touted to provide substantive benefits<br />
to the economy. The OECD expects<br />
broadband to replicate, or even exceed,<br />
the economic gains from the use of such<br />
previous general-purpose technologies<br />
as steam, rail, electricity and information<br />
and communication technologies<br />
(ICT). These gains are derived from increases<br />
in labor productivity and, more<br />
important, multifactor productivity.<br />
There are also costs associated with<br />
broadband. While the investment cost<br />
of broadband technologies is more apparent<br />
to and more easily understood by<br />
the public, a bigger and hidden cost that<br />
could hamper the benefits of genuine<br />
broadband is the cost of an imperfect<br />
market structure and insufficient competition<br />
in the provision of broadband<br />
services.<br />
Over a period of 20 years, the economic<br />
cost of less competition and<br />
higher prices that reflect some degree of<br />
monopoly power could be three to four<br />
times more than the initial cost of providing<br />
the broadband facility.<br />
This article summarizes findings<br />
of research conducted by the CIE on<br />
the impact of genuine broadband for<br />
Australia and some recent preliminary<br />
analysis.<br />
Genuine <strong>Broadband</strong> Access<br />
What differences to Australia’s economy<br />
can be expected from widespread access<br />
to and use of “genuine” broadband?<br />
What distinguishes genuine broadband?<br />
For the CIE, genuine broadband<br />
means Internet access and use that is<br />
fast (at least 12 Mbps with an upgrade<br />
path to go faster over time), accessible,<br />
always on, affordable and in widespread<br />
use. Given existing technologies, it is<br />
likely that genuine broadband is the<br />
stuff that is provided by a network with<br />
near-universal coverage drawing on an<br />
optic fiber backbone.<br />
First, it is central to note that the<br />
gains from genuine broadband arise not<br />
only from making it, but from using it.<br />
Although investment in ICT and broadband<br />
generates an economic stimulus,<br />
much of this is felt in the phase where<br />
equipment is purchased and facilities are<br />
constructed.<br />
<strong>Broadband</strong> facilities, of course, are<br />
only a proportion of the overall ICT<br />
spend, and it is notable that ICT itself<br />
accounts for only a few percentage<br />
points of total economic output (there<br />
are few hard estimates, but somewhere<br />
between 3 and 5 percent of gross domestic<br />
product, or GDP, would probably be<br />
a reasonable estimate).<br />
The large and lasting impact of<br />
genuine broadband arises from its use.<br />
Genuine broadband is a general-purpose<br />
technology (GPT) that enables transformation<br />
of economic processes. Many<br />
households are already experiencing<br />
broadband use and are learning how it<br />
makes communication, entertainment<br />
and other activities easier and cheaper.<br />
Many, if not most, businesses are already<br />
64 | BROADBAND PROPERTIES | www.broadbandproperties.com | November/December 2009
using broadband. What is more interesting<br />
is how businesses are changing the<br />
way they conduct business. <strong>Broadband</strong><br />
enables deeper engagement in e-commerce,<br />
reshaping business and industry<br />
supply chains and products. The OECD<br />
views that broadband will replicate and<br />
possibly even exceed the economic gains<br />
from the use of previous GPTs including<br />
ICT at large.<br />
Substantive economic impacts will be<br />
reflected in productivity changes – that<br />
is, improvements in labor productivity<br />
where genuine broadband services make<br />
work easier, and, more important, multifactor-productivity<br />
(MFP) gains where<br />
broadband reduces friction in many supply<br />
chains in the economy. MFP is more<br />
valuable than labor productivity because<br />
it makes the whole system work better.<br />
There is already some empirical evidence<br />
about these gains from ICT in general<br />
and genuine broadband in particular.<br />
The CIE has recently been using its<br />
detailed economywide models to evaluate<br />
the impacts of broadband and other<br />
technological changes and how differences<br />
in commercial structures may<br />
alter the outcomes. The model used is<br />
the Monash Multi-Regional Forecasting<br />
(MMRF) model, also used by key<br />
economic agencies including, most<br />
recently, the Australian Government<br />
Treasury when estimating the impact<br />
of combating greenhouse-gas emissions.<br />
These models look at the long-term impacts<br />
after all the direct shocks, changes<br />
in prices, exchange rates, employment,<br />
investment, multipliers and other flow<br />
effects are taken into account.<br />
A key input to the analysis is the<br />
extent of productivity gains. After conducting<br />
an exhaustive study over several<br />
years, the Productivity Commission<br />
recently reported evidence that ICT<br />
investment generated a multifactor productivity<br />
gain of between 0.15 to 0.2 per<br />
cent per annum over the 1990s. If the<br />
OECD is correct, genuine broadband<br />
alone could stimulate a similar gain in<br />
coming years; it would be reasonable to<br />
expect an MFP gain of around 1 percent<br />
over the medium term (say five to<br />
six years). If adoption is slower than expected,<br />
then these gains would take longer<br />
to be realized. The MMRF model<br />
A general-purpose technology, broadband<br />
changes the way businesses conduct<br />
their business. It deepens engagement in<br />
e-commerce and reshapes supply chains.<br />
has been used to see what the economywide<br />
implications would be from this<br />
productivity improvement in the medium<br />
to longer term.<br />
<strong>Broadband</strong> to Lift Australia’s<br />
Output by 1.4%<br />
The MMRF simulation results show<br />
that genuine broadband offers gains<br />
over most economic indicators. GDP<br />
would rise. An increase of around 1.4<br />
per cent is projected after about five<br />
to six years. This is equivalent to $15<br />
billion [all amounts are in Australian<br />
dollars] in terms of GDP in 2007–08.<br />
Prices would fall – by around half a percent.<br />
The Australian economy would be<br />
more competitive and export more, and<br />
investment would grow.<br />
The industry results point to a structural<br />
change in the economy. Retail and<br />
wholesale activities will be smaller than<br />
otherwise, reflecting direct sales and supply<br />
chain consolidation. Other activities<br />
grow as they offer greater value to customers<br />
(such as health, education and<br />
recreation). Residential building grows<br />
by a lot, reflecting Australia’s penchant<br />
for real estate and the family home.<br />
BIGGER COSTS ARISING FROM<br />
IMPERFECT COMPETITION AND<br />
HIGHER PRICES<br />
The second main thread of this article is<br />
about the investment cost. This is not a<br />
discussion about the cost of broadband<br />
technologies or difficulties in estimating<br />
what it might be. These possible costs<br />
November/December 2009 | www.broadbandproperties.com | BROADBAND PROPERTIES | 65
would most likely be dwarfed by other<br />
factors, especially market structure and<br />
competition, or the lack of it.<br />
A key market structure factor is<br />
the extent and nature of competition<br />
between wholesale and retail levels in<br />
the supply chain. Alternative market<br />
structures include vertical integration;<br />
the opposite, where there is separation<br />
between wholesale (network) and retail<br />
ends of the market; and some hybrids in<br />
between. These different market structures<br />
also imply differing approaches to<br />
regulation.<br />
In general, competition makes a difference.<br />
Although the introduction and<br />
maintenance of competition through<br />
regulatory arrangements, including<br />
third-party access to infrastructure,<br />
particularly network infrastructure, in<br />
industries such as electricity, water and<br />
gas, aviation and others has not been<br />
perfect, there is compelling evidence<br />
that it has brought significant economic<br />
gains to Australia. This is reflected in<br />
lower prices for services, sustained investment<br />
in provision of services and<br />
sustained growth and employment.<br />
Without competition in the access network,<br />
the monopoly telecom provider would charge<br />
higher prices, increasing the cost of the nextgeneration<br />
network. In effect, the community<br />
would pay for the network many times over.<br />
Less competition in the provision<br />
of genuine broadband services can also<br />
be expected to make a difference. The<br />
CIE recently undertook an analysis of<br />
the economic cost of differing market<br />
structure, competition and regulatory<br />
arrangements for the proposed National<br />
<strong>Broadband</strong> Network (NBN). The analysis<br />
showed that a market and regulatory<br />
structure that permitted the exercise of<br />
market power through vertical integration<br />
and allowed the operator to obtain<br />
a relatively high rate of return on equity<br />
(“north of 18 percent,” in terms of the<br />
debate currently in Australia) would<br />
lead to a loss of GDP of around 0.36 per<br />
cent given a network cost for the NBN<br />
of say, $15 billion.<br />
Relative to the size of GDP this year,<br />
this has a value of around $4 billion and<br />
is about a quarter of the benefit expected<br />
to be gained from use of genuine broadband.<br />
The losses would be larger in proportion<br />
to the actual cost of the NBN.<br />
The real cost of failing to obtain substantive<br />
competition where it could exist<br />
in provision of genuine broadband is<br />
that the economic activity foregone due<br />
to having a higher-cost economy would<br />
equal the cost of the initial network in<br />
five to six years or so. When considering<br />
that the NBN would be in use for 20<br />
years or more, this suggests that the real<br />
cost would be three to four times higher<br />
than the initial network cost. With less<br />
competition, the community would pay<br />
for the network many times over.<br />
Summary<br />
• Widespread access to and use of<br />
genuine broadband would expand<br />
economic activity – an increase of<br />
around 1.4 per cent of GDP could<br />
be expected after about five years.<br />
• Structural changes will also be required.<br />
Some industries will be bypassed<br />
while others will expand, reflecting<br />
income effects.<br />
• The benefits will be lower with less<br />
competition and there would be<br />
higher prices for genuine broadband.<br />
• With less competition and with<br />
prices that reflect a degree of monopoly<br />
power that provides high returns<br />
to shareholders, the economywide<br />
loss of value would equal the initial<br />
network cost every five years or so.<br />
This means that over a 20-year operational<br />
life the economy would pay<br />
a cost roughly equal to three to four<br />
times the original cost. BBP<br />
66 | BROADBAND PROPERTIES | www.broadbandproperties.com | November/December 2009
<strong>Broadband</strong> and the Economy:<br />
The Big Picture – In Short<br />
A roundup of recent findings about the relationship between broadband<br />
and economic conditions worldwide.<br />
<strong>Broadband</strong>’s Benefits Rise With Use<br />
Two new studies show that broadband’s<br />
economic effect isn’t a<br />
straight-line function. Rather,<br />
the more widespread and heavily used<br />
broadband is, the more important it becomes<br />
to the economy.<br />
Pantelis Koutroumpis, a Ph.D.<br />
student at the Imperial College Business<br />
School in London, compared the<br />
growth rates of European Union countries<br />
over the middle years of this decade.<br />
Koutroumpis won an award for his<br />
work at last year’s Biennial International<br />
Telecommunications Society Conference<br />
in Montreal.<br />
Koutroumpis tried to capture what he<br />
calls the “two-way relationship between<br />
growth and broadband infrastructure” –<br />
that is, to find out both how economic<br />
growth creates demand for broadband<br />
and how broadband infrastructure creates<br />
growth. He found, of course, that<br />
wealthier, better educated and more urbanized<br />
countries have more demand for<br />
broadband services. But independent of<br />
this, he found that adopting broadband<br />
boosted a country’s overall economic<br />
growth: Every 1 percent increase in the<br />
broadband penetration rate increases<br />
economic growth by an average of 0.038<br />
percent.<br />
Given that broadband penetration<br />
in Europe increased by 27.5 percent over<br />
the three-year period studied (therefore<br />
increasing growth by 1.05 percent) and<br />
the overall economy grew by about 12<br />
percent, broadband adoption accounted<br />
for close to 10 percent of Europe’s economic<br />
growth over the period.<br />
<strong>Broadband</strong>’s Critical Mass<br />
When he looked more closely at countries<br />
that have different levels of broadband<br />
penetration, Koutroumpis found<br />
that broadband adoption had the most<br />
impact in the countries that already<br />
had the highest broadband penetration.<br />
Once broadband penetration reached<br />
about 50 percent of households, a “critical<br />
mass” effect made broadband even<br />
more valuable. In high-broadband<br />
countries such as the Netherlands and<br />
the Scandinavian countries, broadband<br />
adoption boosted the economy by about<br />
1 percent per year; in countries with<br />
low broadband penetration, broadband<br />
adoption boosted the economy by only<br />
about half a percent per year.<br />
Koutroumpis says, “Put simply, once<br />
more than half the population has access<br />
to broadband, returns to the economy at<br />
least double, when compared to countries<br />
with lower broadband access. This<br />
has important implications for regulators<br />
and policymakers in the developed<br />
and developing world.”<br />
<strong>Broadband</strong> Needs<br />
an Ecosystem<br />
Another study to examine this relationship<br />
is “Economic Impact of <strong>Broadband</strong>:<br />
An Empirical Study,” published<br />
by economic consulting group LECG<br />
and commissioned by Nokia Siemens<br />
Networks (available at www.connec<br />
tivityscorecard.org/images/uploads/me<br />
dia/Report_<strong>Broadband</strong>Study_LECG_<br />
March6.pdf).<br />
Like Koutroumpis, the LECG authors<br />
found that broadband’s impact<br />
varies among countries. In their view,<br />
impact varies according to how well<br />
societies use their broadband capacity.<br />
Businesses more dependent on IT benefit<br />
more from their broadband connections.<br />
In countries using a lot of technology,<br />
every percentage point increase<br />
in broadband penetration increases productivity<br />
by about 0.1 percent. In the<br />
United States specifically, the growth in<br />
broadband penetration between 1999<br />
and 2007 appeared to account for about<br />
one-eighth of productivity growth over<br />
that period.<br />
Impact on GDP of Future Increases in <strong>Broadband</strong> Penetration<br />
In Countries With High Technology Use<br />
(Millions of 2000 US Dollars)<br />
Country<br />
1 Percentage<br />
Point Increase<br />
5 Percentage<br />
Point Increase<br />
10 Percentage<br />
Point Increase<br />
France 1,769 8,846 17,692<br />
Finland 157 783 1,567<br />
Germany 2,023 10,115 20,229<br />
Sweden 274 1,368 2,736<br />
UK 1,845 9,225 18,451<br />
US 11,528 57,640 115,280<br />
Source: LECG<br />
November/December 2009 | www.broadbandproperties.com | BROADBAND PROPERTIES | 67
<strong>Broadband</strong> is the new essential infrastructure. Access to broadband does not guarantee<br />
[success, but] lack of access to broadband will guarantee economic decline.<br />
This means that if broadband penetration<br />
increases by just one more<br />
broadband line per 100 individuals,<br />
the impact on gross domestic product<br />
(GDP) could range from $32 per person<br />
in Finland to nearly $40 per person in<br />
the United States. If the United States<br />
can improve its broadband penetration<br />
rate by 10 broadband lines per 100 individuals<br />
– matching the rates already<br />
achieved in some parts of Northern<br />
Europe – the spillover into the wider<br />
– Susan Crawford, Special Assistant to the President<br />
for Science, Technology, and Innovation Policy<br />
economy could generate $120 billion of<br />
additional GDP, or $400 per person.<br />
However, countries such as Spain,<br />
Greece and Portugal, with low levels of<br />
information technology use, appear to<br />
derive no productivity benefit at all from<br />
broadband. The LECG results suggest<br />
that in order to be an effective enabler of<br />
productivity, broadband requires a welldeveloped<br />
information and communication<br />
technologies (ICT) ecosystem.<br />
The authors argue that policymakers<br />
should focus more on users of broadband<br />
infrastructure. For broadband to<br />
become more effective, countries must<br />
invest in improving overall ICT skills<br />
and in lowering the costs of adopting<br />
technology and restructuring business<br />
models around technology.<br />
The study supports the findings of<br />
LECG’s earlier index of overall connectivity,<br />
the 2009 Connectivity Scorecard:<br />
Useful connectivity, according to the<br />
authors of the Scorecard, depends not<br />
just on the number of people connected<br />
to a network or infrastructure but also<br />
on how well those connected people use<br />
the network or infrastructure.<br />
In other words, broadband productivity<br />
is about more than simple broadband<br />
connectivity. BBP<br />
Measured by the Burger Standard,<br />
Latin America’s <strong>Broadband</strong> Gap Costs Jobs<br />
In “Estimating <strong>Broadband</strong> Demand and Its Economic Impact<br />
in Latin America,” Raul L. Katz of Columbia Business School compares<br />
the prices of broadband with McDonald’s hamburger prices<br />
and finds that broadband costs too much in Latin America. Lack<br />
of competition, Katz says, has raised broadband prices and suppressed<br />
demand for broadband. Most Latin American countries<br />
don’t have the number of broadband lines appropriate for their<br />
per-capita income. His conclusion:<br />
Despite the enormous progress in the past two years,<br />
the region seriously lags in penetration when considering<br />
the needs emerging from the economy. … According to our<br />
analysis, Latin America currently exhibits a broadband gap<br />
equivalent to 11 million lines – an increase of 41 percent over<br />
the current 26 million lines.<br />
If the gap were to be addressed, 378,000 additional jobs<br />
could be created. This allows us to conclude emphasizing<br />
the countercyclical potential that broadband has to fight the<br />
current economic crisis.<br />
Americans Turn to the Internet<br />
For Help Coping With Recession<br />
Some 69 percent of American<br />
adults – fully 88 percent of Internet<br />
users – have gone online to get<br />
help with recession-related personal economic<br />
issues and to gather information<br />
about national economic problems, according<br />
to the Pew Internet & American<br />
Life Project. About a third of that group<br />
have posted comments about the recession<br />
online in blogs, on social networks<br />
or on Twitter.<br />
“Internet users are on a dual quest in<br />
this recession,” says Lee Rainie, director<br />
of the Pew Internet & American Life<br />
Project and co-author of a recent report<br />
based on a nationwide phone survey.<br />
“They are seeking highly practical advice<br />
about how to survive. And they are going<br />
online to gain understanding of what<br />
went wrong, and what policies might fix<br />
the economy. In many cases, the Internet<br />
is also a pathway to contributing<br />
ideas – and rants – about hard times and<br />
a source of expert commentary.”<br />
Here is what this group of Internet<br />
users, whom Pew Internet calls “online<br />
economic users,” have been doing online<br />
in the past year:<br />
• Comparison shopping – 67 percent<br />
of online economic users<br />
• Understanding the recession – 52<br />
percent<br />
• Seeking a new job – 41 percent<br />
• Searching for cost-saving coupons –<br />
40 percent<br />
• Researching the costs of everyday<br />
items – 27 percent<br />
• Looking for ways to supplement<br />
their earnings – 27 percent<br />
• Seeking advice about protecting<br />
their personal finances – 25 percent<br />
• Improving their skills to qualify for<br />
68 | BROADBAND PROPERTIES | www.broadbandproperties.com | November/December 2009
etter jobs – 25 percent<br />
• Selling personal items on auction sites<br />
or classified-ad sites – 23 percent<br />
• Researching unemployment benefits<br />
– 22 percent<br />
• Researching the value of their houses<br />
– 18 percent<br />
• Checking reviews of financial companies<br />
and professionals – 17 percent<br />
• Finding information about getting<br />
loans – 13 percent<br />
• Finding information about filing for<br />
bankruptcy – 3 percent<br />
Researchers at LSE Enterprise Ltd.<br />
and the Information Technology<br />
and Innovation Foundation estimated<br />
that a £5 billion ($8.3 billion)<br />
investment in broadband would create<br />
or retain these jobs for one year:<br />
Although the Internet’s role is very<br />
important – for broadband users, the<br />
Internet is the top source of information<br />
on personal coping strategies during<br />
the recession – these users tend to<br />
rely on a variety of sources. For example,<br />
broadcast media outpace the Internet<br />
as sources of news about national economic<br />
affairs.<br />
And the most Internet-savvy individuals<br />
rely on their own personal networks<br />
of friends and family to help navigate<br />
the recession and contextualize the<br />
material they find online.<br />
“The best way to understand these<br />
online Americans is that they are networked<br />
individuals using networked<br />
information,” argues Aaron Smith, research<br />
specialist at Pew Internet and<br />
co-author of the report. “Theirs is not<br />
an ‘either-or’ world of single information<br />
sources. Many aggressively forage<br />
among a variety of sources and communicate<br />
with a range of people as they try<br />
to navigate some rough seas.” BBP<br />
Jobs Created by <strong>Broadband</strong> Investment in the UK<br />
Job Type Total Jobs Small Business Jobs<br />
Direct 76,500 22,500<br />
Indirect/Induced 134,500 37,000<br />
Network Effect 69,500 34,500<br />
Total Jobs 280,500 94,500<br />
Source: The UK’s Digital Road to Recovery, by Jonathan Liebenau,<br />
Robert Atkinson, Patrik Kärrberg, Daniel Castro and Stephen Ezell, April 2009<br />
Municipal Fiber Systems<br />
Boost Economic Development<br />
Excerpted from “Municipal Fiber to the Home Deployments:<br />
Next Generation <strong>Broadband</strong> as a Municipal Utility,” Fiber-to-the-<br />
Home Council North America, October 2009, based on research<br />
by Michael Render of RVA LLC (www.rvallc.com).<br />
There is evidence that municipal FTTH systems positively<br />
impact local economic growth. Many FTTH cities attribute the<br />
success of efforts to retain and/or facilitate the expansion of<br />
businesses at least in part to the lure of their local FTTH communication<br />
infrastructure. Examples include informationintensive<br />
companies such as Google, MSN and Yahoo. Specific<br />
examples of large employers moving to communities in part<br />
because of the local FTTH system have been noted by many<br />
FTTH cities. The chart lists new business relocations that were<br />
attributed in part or in full to availability of FTTH as the community<br />
communication infrastructure.<br />
According to community leaders interviewed, the attracted<br />
companies believe that local fiber-to-the-premises systems allow<br />
them to do business more efficiently online with less cost.<br />
The availability of redundant fiber services from local providers<br />
is often also mentioned as a plus, as is the prospect of being<br />
able to expand quickly to nonadjacent buildings while still<br />
being tied together via a virtual private network. The ease of<br />
employees working from home is often mentioned by relocation<br />
decision makers as a positive factor.<br />
RVA consumer research has shown that FTTH subscribers<br />
work from home significantly more often than those with DSL,<br />
wireless or cable modem connections, because of the speed<br />
and reliability of their connections. (There are even documented<br />
cases of important employees having dedicated fiber<br />
lines between home and office in municipal FTTH cities.) Finally,<br />
interviewees noted the importance of improved quality of life<br />
for employees thanks to the availability of high-bandwidth<br />
video and Internet services to nearby homes and schools.<br />
Many municipalities also report an increase in home-based<br />
businesses because of FTTH – with many of these businesses<br />
bringing in revenue from outside the region. Specifically mentioned<br />
were examples of businesses requiring very high bandwidths<br />
for tasks such as scientific consulting and video editing.<br />
Municipalities Reporting Plants<br />
Locating In Part Because of FTTH<br />
Auburn, Ind.<br />
Cooper Tire expansion<br />
Bristol, Tenn.<br />
Media General<br />
Bristol, Va.<br />
Northrup Grumman, CGI<br />
Chelan County, Wash.<br />
Yahoo<br />
Douglas County, Wash.<br />
Sabey Corporation<br />
Grant County, Wash. MSN (Microsoft), Ask Jeeves, Intuit<br />
Independence, Ore.<br />
Metal fabrication companies<br />
Kutztown, Pa.<br />
Film production companies<br />
LENOWISCO, Va.<br />
Data centers<br />
Mason County, Wash.<br />
Louisville Slugger, Sims,<br />
technology and engineering firms<br />
Morristown, Tenn.<br />
Colgate Palmolive<br />
Powell, Wyo.<br />
Alpine Access Virtual Call Center<br />
Windom, Minn.<br />
Trucking companies<br />
November/December 2009 | www.broadbandproperties.com | BROADBAND PROPERTIES | 69
World Bank: <strong>Broadband</strong>’s Effect<br />
On Worldwide Economic Growth<br />
Excerpted from “Information and Communications for Development<br />
2009,” by Mohsen Khalil, Philippe Dongier and Christine<br />
Zhen-Wei Qiang, The World Bank Group, available at http://www.<br />
worldbank.org/ic4d.<br />
<strong>Broadband</strong> has considerable economic impact at all levels<br />
of individuals, firms and communities. Individuals increasingly<br />
use broadband to acquire knowledge and skills to increase<br />
their employment opportunities. Where broadband has been<br />
introduced in rural areas of developing countries, villagers<br />
and farmers have gained better access to crop market prices,<br />
training and job opportunities. In developed countries and<br />
urban areas in developing countries, an increasing number<br />
of individuals build up social networks through broadbandenabled,<br />
peer-to-peer Web-based groups that facilitate economic<br />
integration and drive development. Blogs (Web logs,<br />
or online diaries), wikis (Web sites where users can contribute<br />
and edit content), video sharing sites and the like allow new,<br />
decentralized and dynamic approaches to capturing and disseminating<br />
information that allows individuals to become<br />
better prepared for the knowledge economy.<br />
Access to broadband supports the growth of firms by<br />
lowering costs and raising productivity. Realizing these performance<br />
improvements, however, depends on firms’ ability<br />
to integrate their technological, business and organizational<br />
strategies. When fully absorbed, broadband drives intense,<br />
productive uses of online applications and services, making it<br />
possible to improve processes, introduce new business models,<br />
drive innovation and extend business links.<br />
A study involving business and technology decision makers<br />
in 1,200 companies in six Latin American countries<br />
– Argentina, Brazil, Chile, Colombia, Costa<br />
Rica and Mexico – showed that broadband deployment<br />
was associated with considerable improvements<br />
in business organization, including<br />
speed and timing of business and process reengineering,<br />
process automation, data processing<br />
and diffusion of information within organizations.<br />
Firms in the media, export and other<br />
information-intensive sectors have benefited<br />
most from integrating broadband into their<br />
business processes. Clarke and Wallsten (2006),<br />
in a study of 27 developed and 66 developing<br />
countries, found that a 1-percentage-point increase<br />
in the number of Internet users is correlated<br />
with a boost in exports of 4.3 percentage<br />
points. Increases of 25 percent or more in<br />
the efficiency of claims processed per day have<br />
been documented by U.S. insurance companies<br />
that have adopted wireless broadband (Sprint<br />
2006). Other industries that have benefited significantly<br />
include consulting, accounting, marketing,<br />
real estate, tourism and advertising.<br />
Local communities around the world have<br />
realized considerable economic gains and<br />
new opportunities from broadband services. Studies from<br />
Canada, the United Kingdom and the United States find that<br />
broadband connectivity has a positive economic impact on<br />
job creation, community retention, retail sales and tax revenues.<br />
In rural areas of developing countries, communities<br />
have recently begun to launch broadband services and applications<br />
that give local populations access to new markets and<br />
services. Facilitating information exchange and value creation<br />
between buyers and sellers of agricultural products, which<br />
has improved income and livelihoods in rural areas, is a prime<br />
example of this. Previously, such opportunities were available<br />
only in the largest or wealthiest localities.<br />
According to a recent World Bank econometric analysis of<br />
120 countries, for every 10-percentage-point increase in the<br />
penetration of broadband services, there is an increase in economic<br />
growth of 1.3 percentage points. This growth effect of<br />
broadband is significant and stronger in developing countries<br />
than in developed economies, and it is higher than that of<br />
telephony and Internet. The impact can be even more robust<br />
once the penetration reaches a critical mass.<br />
Because broadband networks have the potential to contribute<br />
so much to economic development, they should be<br />
widely available at affordable prices and should become an<br />
integral part of national development strategies. Currently,<br />
though, few people in developing economies have access to<br />
broadband networks. In 2007, an average of less than 5 percent<br />
of the population of low-income economies was connected<br />
to broadband networks, and that was mostly in urban<br />
centers. In this light, developing countries are missing a great<br />
development opportunity.<br />
Growth Effects of Information<br />
and Communications Technologies<br />
The y-axis represents the percentage-point increase in economic growth per 10-percentage-point<br />
increase in telecommunications penetration.<br />
70 | BROADBAND PROPERTIES | www.broadbandproperties.com | November/December 2009
Texas Cooperative<br />
Spurs Economic Growth<br />
New fiber and old-fashioned ideas about being a fearless first mover in a<br />
competitive marketplace have given GVTC – and its home counties – a big<br />
edge in tough times.<br />
By Steven S. Ross ■ <strong>Broadband</strong> <strong>Properties</strong><br />
Who knows more about the<br />
economics of telecommunications<br />
and the value of fiberto-the-home<br />
deployments – Wall Streetbankers<br />
or the ranchers and other local<br />
businesspeople who serve on the board<br />
of GVTC, the largest telephone cooperative<br />
in Texas? Judging by GVTC’s<br />
performance, one would have to go with<br />
the ranchers.<br />
Using mainly its own current cash<br />
flow, GVTC has built fiber out to about<br />
two-thirds of its 32,000 customer/members<br />
in a 2,000-square-mile service area<br />
that sprawls across 11 counties north<br />
of San Antonio. The build, which uses<br />
mainly Calix equipment, started in<br />
2004, just six months after Ritchie Sorrells<br />
was hired as president and CEO.<br />
The area, fed by Texas oil wealth,<br />
San Antonio’s high-tech companies and<br />
a large military presence, has been somewhat<br />
insulated from (although hardly<br />
immune to) the nationwide economic<br />
downturn. But GVTC’s presence clearly<br />
has also helped. Telcos, especially local<br />
telcos, tend to work hand in glove with<br />
local economic development authorities.<br />
GVTC takes cooperation a step further,<br />
providing much of the funding for the<br />
Kendall County Economic Development<br />
Corporation (whose CEO, Dan<br />
Rogers, spoke at the 2008 <strong>Broadband</strong><br />
<strong>Properties</strong> Summit; see the report on his<br />
speech in the sidebar).<br />
“Dan Rogers came two years ago to<br />
run the Economic Development Corporation<br />
[EDC],” says Jeff Mnick, vice<br />
president for sales and marketing for<br />
Jeff Mnick (left), GVTC vice president of sales and marketing and Ritchie Sorrells, CEO.<br />
GVTC. “We are not only a leader in<br />
Kendall County economic development,<br />
we’re a leader in every chamber [of commerce]<br />
there is. One of our managers is<br />
starting up an economic development<br />
operation in Bulverde. That’s his job,<br />
and because we have that exposure to<br />
economic development in a leadership<br />
position, people are looking to us to take<br />
the ball downfield.”<br />
Benefiting From Economic<br />
Development<br />
What’s the benefit to GVTC? “We look<br />
at the metrics, the internal rate of return,<br />
but we expect the business,” says<br />
Sorrells. “We’re not going to hold anyone<br />
hostage, but we’re going to ask for<br />
the business, and we’re going to ask for<br />
it in a focused way.<br />
“To illustrate, we saw an opportunity<br />
in Boerne, where as a CLEC we<br />
already had an HFC [hybrid fiber/coax]<br />
network, to overbuild to the business<br />
community with fiber optics and focus<br />
on the business community.<br />
“We recognized that this would provide<br />
a differentiator for Boerne. As a<br />
About the Author<br />
Steve is corporate editor of <strong>Broadband</strong> <strong>Properties</strong>. See his blog, “Take it to the Bank,”<br />
at www.bbpmag.com. He can be reached at steve@broadbandproperties.com.<br />
November/December 2009 | www.broadbandproperties.com | BROADBAND PROPERTIES | 71
Left to right: Sanford Nowlin, communications specialist; Bryan Geiger, manager, network operations<br />
center; Tom Zanoli, product manager, Internet; Kris Whitman, manager, network engineering.<br />
prospective company [choosing a location],<br />
you are looking for differentiation,<br />
and we felt that a fiber network provided<br />
by one of the best companies in the industry,<br />
GVTC, could provide the impetus<br />
for companies to select Boerne.<br />
After two years, I am proud to say, after<br />
competing against Time Warner, Windstream<br />
and Verizon in one of the most<br />
competitive areas in the country … we<br />
have a 70 percent market share.”<br />
As part of the partnership with the<br />
economic development group, GVTC<br />
provides a large conference room – it can<br />
hold 30 people – next to its own storefront<br />
in Boerne. Says Sorrells: “I was told<br />
that last month the leadership in Boerne<br />
used that conference room an average<br />
of two times a day. So think about this.<br />
They come to a GVTC facility – not just<br />
managers from prospective businesses;<br />
this is the leadership of Boerne – and<br />
they come to our building, our conference<br />
room, branded GVTC, and it has<br />
all the amenities and services including<br />
videoconferencing, provided by GVTC.<br />
We’re helping the leadership of Boerne<br />
to succeed.”<br />
Time Warner Cable is actually the<br />
big competitor in the area, says Mnick.<br />
Verizon is not serving much broadband<br />
there, because it uses old voice lines originally<br />
installed by GTE. Nevertheless,<br />
GVTC’s actions are an example of the<br />
national “Verizon Effect” documented<br />
by researcher Michael Render of RVA.<br />
Some 90 percent of small telco FTTH<br />
deployments are close to the Verizon<br />
footprint or close to other large competitors’<br />
ultra-broadband networks.<br />
FINANCIAL STRENGTH<br />
GVTC’s annual revenue is about $60<br />
million, and the balance sheet showed<br />
close to that much in cash and marketable<br />
securities at the end of 2008. Thus,<br />
it has a strong story to tell when it competes<br />
for business against the likes of<br />
Time Warner Cable (which will have<br />
about $18 billion in debt as it completes<br />
GVTC network operations center.<br />
its split from Time Warner). Sorrells<br />
notes that GVTC does not “have to go<br />
out and attract capital,” and this positions<br />
the company to play long-term.<br />
“We’re really no different from anyone<br />
else,” Sorrells says. “At the end of<br />
the day, we have to make money, and<br />
at the end of the day, we have to meet<br />
an expectation that to some degree was<br />
created under a totally different set of<br />
circumstances. … We used to be a monopolistic<br />
company; if you wanted to do<br />
business with us, you had to do it under<br />
our terms because the [state utilities]<br />
commission set the rates.”<br />
For GVTC, the new fiber-borne business<br />
is critical. Like other telcos, GVTC<br />
continues to see an erosion in access<br />
lines – from about 43,000 at the end of<br />
2007 to about 42,000 by mid-2009. But<br />
all the loss is within its ILEC footprint<br />
(41,500 to 39,500). The CLEC business<br />
is growing, almost doubling in the same<br />
period to more than 2,500 lines.<br />
About half of all access-line customers<br />
take a 1.5 Mbps DSL offering, and<br />
fewer than 1,500 customers were using<br />
dial-up Internet services by mid-year. But<br />
both tiers are quickly losing ground to<br />
GVTC’s higher-speed offerings. Enrollment<br />
in the 5 Mbps tier went from just<br />
over 4,000 premises to nearly 7,000 in<br />
the first six months of 2009; in the same<br />
period, enrollment in the 8 Mbps tier<br />
nearly doubled, reaching about 2,500.<br />
72 | BROADBAND PROPERTIES | www.broadbandproperties.com | November/December 2009
The total number of Internet customers<br />
grew from more than 24,500 in<br />
January 2008 to nearly 27,000 in June<br />
2009. Bandwidth traffic per customer<br />
doubled in the same 18 months, growing<br />
from an average of about 0.015<br />
megabytes per second to nearly 0.03.<br />
To handle the flow and provide greater<br />
reliability, GVTC turned its 1 Gbps fiber<br />
backbone into two self-healing 10<br />
Gbps rings (the route, roughly, is between<br />
Interstate 10 and state Highway<br />
281, radiating out of San Antonio). No<br />
new fiber was laid; the extra bandwidth<br />
comes from upgraded electronics and<br />
wave-division multiplexing. In fact, the<br />
1 Gbps ring remained in place.<br />
The technical staff says that there was<br />
no field work involved at all, even as customers<br />
were gradually cut over to the 10<br />
Gbps service. Everything was handled<br />
inside the central offices. The work took<br />
months, however, as customers received<br />
new IP addresses for their VLANs and<br />
other activities.<br />
A strategy for the long term<br />
Sorrells came to GVTC from the Houston<br />
area after spending 26 years with<br />
Alltel. “The board recognized that things<br />
were changing and the board committed<br />
itself to sustaining the co-op longterm,”<br />
says Mnick. “They made a commitment<br />
to compete, to do what it takes<br />
to change the culture to create value and<br />
really sustain ourselves long-term. They<br />
wanted to be in control of their communication<br />
provider and, to their credit,<br />
they recognized a fundamental shift in<br />
leadership was necessary.”<br />
Today GVTC derives little revenue<br />
from mobile operations, and gets more<br />
than half its revenues from federal and<br />
state subsidies and intercarrier payments.<br />
Says Sorrells: “Six years ago, you did not<br />
have to be real smart to realize things<br />
weren’t going to be the same in the future<br />
… what with wireless substitution and<br />
the fact that you know the subsidy is not<br />
going to grow. We have to create value<br />
and replace lost revenue long-term. This<br />
is where the board got it.”<br />
“This board cherishes the value,<br />
senses the value, of being local, of being<br />
in control. One thing I like, at the<br />
end of the day, is that our customers feel<br />
fortunate that they are served by a company<br />
like GVTC,” says Sorrells. “We<br />
separate ourselves with great customer<br />
service. That’s our differentiating value.<br />
But we also have price and reliability of<br />
the network, which complements that<br />
spirit of customer service.<br />
“Customers want options, choices.<br />
Also, from a value proposition we have<br />
to be connected to our community. We<br />
have to be the leader that we are. We<br />
have to demonstrate that.”<br />
BRAND RECOGNITION<br />
Sorrells admits that many of the residents<br />
and businesses in the GVTC footprint<br />
are new to the area and have never heard<br />
of GVTC. “We have to be better marketers<br />
than Time Warner,” he says. “Think<br />
about this. You move here from Houston<br />
or Provo. Everybody has heard of Time<br />
Warner. You are going to be asked to go<br />
November/December 2009 | www.broadbandproperties.com | BROADBAND PROPERTIES | 73
with a provider that you never heard of.<br />
A provider that is a co-op.<br />
“Co-ops have a perception of being<br />
not progressive. So we need to get to the<br />
customer first. We have nine sales channels.<br />
If you interface with a customer,<br />
you have a quota. It is an expectation<br />
here at GVTC. If you are a technician<br />
or CSR or service center rep, you are expected<br />
to ask for the business.”<br />
How did Sorrells rally the troops?<br />
“His coming here was my confidence<br />
in him and what he wanted to do,” says<br />
Mnick. “We were not just going to sit<br />
here as a me-too company and just try to<br />
hold off a Time Warner onslaught or try<br />
to compete with Verizon [on copper].<br />
He put us in a position to win … not<br />
just to stop the bleeding but to reverse<br />
the effect of what we were losing prior to<br />
his coming on board.<br />
“We were one of the first co-ops to<br />
put an outside sales force together. We<br />
were doing it before BellSouth. We were<br />
not going to just put out direct mailers<br />
and sit back. My background was<br />
in the CLEC end of the business. We<br />
had to scratch and fight against the incumbents.<br />
As a CLEC manager, I was<br />
battle-worn. And many of our managers<br />
are from CLECs.”<br />
“Fear is a great motivator,” says Sorrells.<br />
“We compete against Verizon in<br />
Boerne. They are the incumbent. We<br />
GVTC customer service center.<br />
had to seize the opportunity, or the window<br />
would close. We saw that in 2004.<br />
So we had to change the culture and<br />
seize the opportunity. We had to do the<br />
overbuild and do it right then.”<br />
NEXT MOVES<br />
GVTC is also quickly overbuilding its<br />
older network. “We have an overbuild<br />
strategy in our brownfields where we had<br />
copper and have a 60 to 70 percent penetration<br />
of homes that have computers,”<br />
said Sorrells. “Some 23 percent of the<br />
homes in our service area do not have a<br />
computer. We got out there quickly with<br />
broadband and now we are adding speed<br />
and TV. Lots of people in the area have<br />
satellite TV, so the urgency of the customer<br />
for change is not there. We have<br />
to come up with better services.<br />
“The fact that we are active in the<br />
community makes people in our area<br />
want to buy from GVTC, but sometimes<br />
they have to work through [long-term]<br />
contracts with other providers. They are<br />
not just going to wait in line for us until<br />
the contract expires unless we promote<br />
to them. We do mailers, telemarketing,<br />
we have two stores, door-to-door sales<br />
staff and telephone sales.”<br />
Sorrells noted that marketing to<br />
greenfields was easy, “but now we are<br />
seeing second-generation home ownership<br />
in what was a greenfield two years<br />
ago. We no longer have a relationship<br />
with the builder, but we have an investment<br />
in the equipment at the side of the<br />
house. How do we get a relationship with<br />
that second homeowner when we had a<br />
single-source partnership with a builder<br />
before? And we’re competing at a disadvantage.<br />
The electric company, CPS, has<br />
a relationship with a third-party vendor<br />
for broadband, and we’re so small compared<br />
to their footprint that we don’t get<br />
to represent ourselves in this area.”<br />
Early on, GVTC had to explain the<br />
advantages of fiber to developers. “Today<br />
they are asking for it to a greater degree<br />
as they see the value long-term and<br />
that it helps sales,” says Mnick.<br />
Mnick notes, however, that MDUs<br />
aren’t GVTC’s niche. “The Time Warners<br />
of the world will cable it for free,<br />
pay the builders, pay door fees, and we<br />
can’t afford that. We need a return on<br />
investment, and they want the market<br />
share at any cost. The problem is that<br />
the customer loses because the customer<br />
is not getting a discount. The guy in the<br />
MDU pays double the price of the guy<br />
in a subdivision.”<br />
It all comes back to the economic development<br />
effort. “The fact that we are<br />
involved in the EDC gets us in front of<br />
the owners and developers, and we are<br />
winning some of the MDU business –<br />
we just won two of them,” says Sorrells.<br />
Mnick adds, “We have not approached<br />
any of these MDUs with price.<br />
We talk about value and future-proofing,<br />
but we are not interested in ‘free<br />
this, free that.’”<br />
The future? “So many public companies<br />
are driven by quarterly results and<br />
what the Street has to say about those<br />
results. I find concentration on those<br />
results is very short-sighted and a detriment<br />
to the services we try to provide,”<br />
says Sorrells. “Obviously at GVTC we’re<br />
all about the long term … our strategic<br />
purpose is to stay in business … we’re<br />
planning today to be in business 20<br />
years from now.”<br />
“We’re looking at CLEC opportunities,”<br />
says Mnick. “We have three subdivisions<br />
in the planning stage that were<br />
ready go when the economic downturn<br />
hit. They total nearly 9,000 lots.”<br />
What will you bet that GVTC gets<br />
there first? BBP<br />
74 | BROADBAND PROPERTIES | www.broadbandproperties.com | November/December 2009
Rural Success<br />
This excerpt is from the <strong>Broadband</strong> <strong>Properties</strong> Summit 08 Coverage in Dallas, Texas that ran in our June 2008 issue on pages<br />
27-28. The entire article can be found at the following link: http://www.bbpmag.com/2008issues/june08/BBP_June08_Summit<br />
Overview.pdf.<br />
Dan Rogers, CEO of the Kendall County Economic Development Corporation, lauded the local telephone company, GVTC<br />
– the largest telephone cooperative in Texas and an early fiber deployer. Its service area spans 2,000 square miles and 11<br />
counties, and includes more than 32,000 members with approximately 42,000 access lines. GVTC is willing to work with<br />
him to promise fiber to relocating or growing businesses. “If you don’t have a provider that will work with you, either find<br />
one or change your outlook,” he said.<br />
Rogers said the county, just outside San Antonio, is growing fast. “What’s critical for us is not being eliminated by corporate<br />
site selection committees,” he said. “Quality of life is necessary to attract businesses, and the business community is looking<br />
to all the utility providers to help. If I don’t have fiber, I’m eliminated – not just fiber to the business, because the executives<br />
are commuting to San Antonio and want to work from home because of gas prices. Fiber allows throughput and security.”<br />
“To us in small-town America, fiber is becoming the most important thing,” Rogers noted. “Advanced technology compan<br />
ies and medical companies are look ing for fiber.” He cited three examples:<br />
• A small software company relocating from Houston – “we were able to get them because we had fiber. Otherwise they<br />
would have gone to San Antonio.”<br />
• A software company in Boerne [in Kendall County] would have had to move to San Antonio, but they stayed because of<br />
fiber. Their big client is FedEx.<br />
• An aerospace company in Boerne asked for a package to compete with four states. It was the largest project in the history<br />
of Kendall County, and they won it. The company is moving into a new facility with fiber.<br />
Downspout Raceway<br />
Hide your cabling in plain sight<br />
Crown & Cove Molding Systems<br />
When ordinary raceway won’t do<br />
www.GoMultilink.com<br />
Sales@GoMultilink.com<br />
440.366.6966<br />
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November/December 2009 | www.broadbandproperties.com | BROADBAND PROPERTIES | 75
OPINION<br />
To Make Business-Class<br />
<strong>Broadband</strong> More<br />
Affordable, Open the Networks<br />
The nation’s largest competitive carrier argued before the FCC for a 100 Mbps<br />
national broadband network – and for competitive cost-based access to<br />
copper, HFC and fiber local loops. These steps, it says, will make American<br />
businesses more competitive in the global economy.<br />
By Anthony Hansel ■ Covad Communications Company<br />
Small businesses are the engine of<br />
innovation and job creation in the<br />
United States, creating between<br />
60 and 80 percent of net new jobs this<br />
past decade. They employ half of all private-sector<br />
employees and create almost<br />
half of nonfarm gross domestic product.<br />
They produce more than 13 times more<br />
patents per employee than large firms<br />
and employ approximately 40 percent of<br />
tech workers in the United States. Many<br />
of the great success stories of the last<br />
decade were recently small businesses,<br />
including such notable companies as<br />
Google, Yahoo, Amazon and eBay.<br />
Unfortunately, most small businesses<br />
in the United States lack reasonably<br />
priced access to business-class broadband<br />
services. According to a 2004 survey conducted<br />
by the Small Business Administration,<br />
only 4 percent of small businesses<br />
purchased T1 broadband services, the<br />
primary entry-level business-class broadband<br />
service. It is safe to assume that percentage<br />
has increased since then, but even<br />
so, nearly all small businesses continue to<br />
rely on best-effort, consumer-class broadband<br />
services, which use shared networks<br />
and do not provide the quality of service<br />
(QoS) that businesses need to compete in<br />
the global economy.<br />
Cost continues to be the key factor.<br />
The average price for a T1 connection<br />
in the United States remains very<br />
high, at around $500 per month. That<br />
makes business-class broadband services<br />
unavailable for most small businesses.<br />
American companies need robust datatransmission<br />
services to compete in an<br />
interconnected marketplace – and the<br />
speeds that support many applications<br />
today probably will not support the most<br />
transformational applications tomorrow.<br />
Covad recently filed comments with<br />
the Federal Communications Commission<br />
arguing that the agency could<br />
dramatically increase small businesses’<br />
access to reasonably priced businessclass<br />
broadband through a two-pronged<br />
approach: (1) Leverage existing assets,<br />
including copper; and (2) encourage innovation<br />
and competition.<br />
The Continuing Need<br />
for Copper<br />
Nearly all small businesses are already<br />
connected to copper last-mile facilities.<br />
These existing copper connections are<br />
currently the primary broadband medium<br />
for small business customers, and<br />
will continue to be so for the next several<br />
years.<br />
Fiber serves only about 12 percent<br />
of United States businesses, generally in<br />
the cores of large cities. With a focused<br />
national buildout plan, fiber will not be<br />
broadly available to most small businesses<br />
for at least three to five years. Without a<br />
national buildout plan, that time frame<br />
could instead be measured in decades.<br />
Cable providers have historically focused<br />
their network deployment in residential<br />
areas, leaving many businesses<br />
without access to cable-based broadband<br />
services. For businesses that do have access<br />
to the cable plant, the cable companies’<br />
best-effort services do not provide<br />
business-class QoS. It is therefore vitally<br />
important to preserve the legacy copper<br />
plant and to give a wide range of companies<br />
the option of providing innovative<br />
services to small businesses over the legacy<br />
copper on the basis of total element<br />
long-run incremental cost.<br />
Copper is a proven medium for providing<br />
business-class broadband services<br />
About the Author<br />
Anthony Hansel is assistant general counsel of Covad Communications Company,<br />
a national facilities-based provider of data, voice and wireless telecommunications<br />
solutions for small and medium-sized businesses. For more information, see www.<br />
covad.com.<br />
76 | BROADBAND PROPERTIES | www.broadbandproperties.com | November/December 2009
to small businesses. T1s and bonded T1s<br />
provide broadband service at speeds ranging<br />
from 1.5 to 12 Mbps, with guaranteed<br />
QoS, for less than $200 per megabit<br />
in markets that have competitive alternatives.<br />
Moreover, Ethernet over copper is<br />
an emerging technology that provides<br />
business-class broadband at speeds ranging<br />
from 1 to 20 Mbps. With these technologies,<br />
existing copper can be used<br />
to dramatically expand business-class<br />
broadband to small businesses, without<br />
the need to wait several years for nextgeneration<br />
networks to be deployed.<br />
OPINION<br />
To enable transformative applications, nextgeneration<br />
broadband should offer speeds of at<br />
least 100 Mbps and high quality of service.<br />
Promoting Competition<br />
and Innovation<br />
The FCC should expand competitive<br />
access to business-class broadband for<br />
small businesses and oversee the buildout,<br />
on an open-access basis, of a nextgeneration<br />
broadband network by 2015.<br />
The agency can foster innovation and<br />
competition by providing reasonable<br />
wholesale open access over the ILEC<br />
next-generation fiber and hybrid fibercopper<br />
networks using an actual-cost,<br />
rate-of-return pricing methodology.<br />
Competition is a key prerequisite for<br />
universal broadband.<br />
Wholesale open access is essential to<br />
the widespread deployment and adoption<br />
of broadband. As one of the first companies<br />
to deploy retail DSL services in the<br />
United States, Covad can attest firsthand<br />
to the importance of competition. The<br />
incumbent carriers did not deploy retail<br />
DSL until after competitive carriers such<br />
as Covad entered the market.<br />
Competition ensures innovation,<br />
which in turn accelerates the availability<br />
of next-generation broadband for<br />
American consumers and businesses.<br />
One need only examine the broadband<br />
world before the advent of competition.<br />
In short, there was no broadband. The<br />
incumbents possessed DSL technology,<br />
but chose instead to deploy higher-priced<br />
services to businesses and to ignore the<br />
residential market.<br />
Other countries are moving ahead aggressively<br />
with unbundling and buildout<br />
programs for broadband that rely heavily<br />
on partial public funding and wholesale<br />
open access. Those countries are leaders<br />
in broadband deployment, including<br />
next-generation deployment. Their experiences<br />
provide useful lessons for the<br />
United States – and, equally important,<br />
provide a benchmark for the standard to<br />
which the United States will be held in a<br />
competitive global marketplace.<br />
Japan ranks first in the world in the<br />
percentage of broadband lines served<br />
by fiber, with 48 percent. By contrast,<br />
the figure for the United States is 4 percent.<br />
Japan has achieved this high level<br />
of next-generation broadband with aggressive<br />
unbundling requirements, including<br />
copper loops, collocation and<br />
fiber loops. Even with fiber unbundling<br />
requirements, the Japanese incumbent<br />
NTT has invested $200 billion in its<br />
next-generation network and plans on<br />
offering fiber-based services to 50 percent<br />
of its footprint by <strong>2010</strong>. Japan also<br />
supplements private capital with public<br />
funding in the form of subsidies, tax incentives<br />
and low- or zero-interest loans.<br />
South Korea ranks second in the<br />
percentage of broadband lines served<br />
by fiber, with 43 percent. The country<br />
achieved this high level of fiber penetration<br />
with copper-loop unbundling<br />
requirements as well as government<br />
grants, loans and tax incentives. As with<br />
Japan, South Korea is rapidly deploying<br />
broadband, including next-generation<br />
broadband, using a combination of unbundling<br />
and public funding.<br />
Australia recently announced plans<br />
to publicly fund a next-generation<br />
broadband network, offering 100 Mbps<br />
connections to 90 percent of its locations<br />
and wireless broadband to the remaining<br />
10 percent. The network is expected<br />
to cost $30 billion. Although the Australian<br />
government will be the majority<br />
shareholder, the government will partner<br />
with private capital and – significantly<br />
– will offer wholesale services over the<br />
network on an open-access basis.<br />
Finally, Sweden has been active in<br />
deploying next-generation broadband,<br />
particularly at the municipal level.<br />
For example, the City of Stockholm<br />
and Stockholm County Council built<br />
a dark-fiber system, which they lease<br />
on a wholesale open-access basis. Sweden<br />
ranks third in the percentage of<br />
broadband lines served by fiber, with<br />
20 percent. This is another example of<br />
the effectiveness of open-access models,<br />
combined with partial public funding,<br />
in encouraging the construction and<br />
adoption of next-generation broadband.<br />
The Long View<br />
Next-generation broadband has the<br />
potential to be transformative. To enable<br />
the transformative applications, the<br />
buildout should offer broadband speeds<br />
and QoS that are an order of magnitude<br />
higher than those currently available to<br />
most Americans. The next-generation<br />
network should offer speeds of at least<br />
100 Mbps by 2015. In addition to the<br />
100 Mbps, the next-generation network<br />
should guarantee each location at least 20<br />
Mbps with video-level QoS. Many of the<br />
transformative applications – including<br />
high-definition videoconferencing, distance<br />
learning and telemedicine – involve<br />
two-way video, which requires a guaranteed<br />
data stream. Even with significant<br />
compression, which can lead to ghosting<br />
and other quality issues, a two-way highdefinition<br />
video stream currently requires<br />
between 1 and 10 Mbps. A business or<br />
family will undoubtedly want more than<br />
one video stream, so 20 Mbps is a reasonable<br />
minimum target for guaranteed<br />
video-quality bandwidth.<br />
As a result of the deployment of this<br />
21st-century network, consumers will<br />
benefit immensely from the innovative<br />
products and services developed in a<br />
competitive broadband market. American<br />
small businesses will benefit from<br />
higher-speed and lower-cost businessclass<br />
broadband, enabling them to utilize<br />
these technologies for innovation<br />
and to cycle savings back into the economy<br />
through job creation and consumer<br />
spending. This innovation and economic<br />
growth will in turn allow the United<br />
States to maintain its competitive position<br />
in the global economy. BBP<br />
November/December 2009 | www.broadbandproperties.com | BROADBAND PROPERTIES | 77
R E V E N U E - G E N E R A T I N G A P P L I C A T I O N S<br />
New Sources of Revenue<br />
For Service Providers<br />
Customer tech support and hosted IPTV services are two promising new<br />
directions for network operators looking to expand their service offerings.<br />
By Masha Zager ■ <strong>Broadband</strong> <strong>Properties</strong><br />
Service providers adding new<br />
services to their portfolio can<br />
approach the subject in one<br />
of two ways. They can ask either<br />
“What do our customers<br />
want to purchase from us?” or “How can<br />
we leverage our existing network plant<br />
and equipment?” The two questions may<br />
lead to very different answers.<br />
Focusing on demand for services,<br />
providers see customers looking for<br />
help with their networked devices. The<br />
technology that has become critical to<br />
households and businesses is formidably<br />
complex. Customers who had no trouble<br />
getting computers to work with printers<br />
may be baffled once their computers<br />
have to talk to Wi-Fi routers, game controllers,<br />
TVs, iPods and cameras.<br />
“Telephone companies and MSOs<br />
find that they’re being blamed for problems<br />
far more often than is their fault,”<br />
says Ted Werth, founder of tech support<br />
firm PlumChoice (www.plumchoice.<br />
com). Werth estimates that in about 40<br />
percent of customer calls about slow Internet<br />
service, the true problem is unrelated<br />
to the Internet connection. He says,<br />
“Companies are faced with a choice: Do<br />
you send them somewhere else and let<br />
them continue to be upset, or do you try<br />
to solve their problems for them?”<br />
Many providers, tired of dealing with<br />
frustrated and angry customers, now offer<br />
to solve their customers’ problems –<br />
for a fee. They find that the benefits of<br />
offering support services include not just<br />
revenues but also customer loyalty.<br />
Nearly all of them, even large telcos<br />
and MSOs, outsource the job to companies,<br />
such as PlumChoice, that keep<br />
Many customers need help getting their<br />
digital devices to work together. Solving their<br />
connectivity problems is an opportunity<br />
to win customer loyalty.<br />
trained technicians on call around the<br />
clock, 365 days a year. Outsourcing<br />
makes sense in this situation, Werth says,<br />
because it lets providers bring support<br />
services to market faster and at lower cost<br />
than building an in-house solution.<br />
A Trusted Source<br />
Although customers may not be delighted<br />
about paying for support, Werth<br />
says, they are very happy about getting<br />
their problems resolved rather than being<br />
“thrown to the wolves.” As far as<br />
the customers are concerned, they are<br />
receiving help from their service providers<br />
– in most cases, they don’t know the<br />
support technician is from a different<br />
company. They may be charged for the<br />
support calls on their regular monthly<br />
bills or pay by credit card. (Generally,<br />
subscription-based support shows up on<br />
phone or cable bills, and one-time calls<br />
are paid by credit card.)<br />
PlumChoice’s U.S.-based workforce<br />
is equipped with secure, encrypted connections<br />
and records every conversation<br />
and every keystroke. Using weekly<br />
reporting and feedback, the company<br />
continually evaluates and trains its technicians,<br />
keeping customer satisfaction<br />
levels high. Because technicians can<br />
remotely resolve the vast majority of<br />
problems – software and interoperability<br />
issues, viruses, incorrect configurations<br />
– service costs are reasonably low.<br />
In the rare cases where customers need<br />
on-site service, PlumChoice can send<br />
technicians – either its own employees<br />
or those of its partners – to any home<br />
or small business in the United States,<br />
while maintaining the continuity of the<br />
service experience.<br />
Small and midsized businesses are as<br />
likely as households to buy remote technical<br />
support services from their Internet<br />
providers. Even companies with dedicated<br />
IT staff find on-call support useful.<br />
Werth says, “Eventually, even a company<br />
with someone capable [at IT] runs into a<br />
situation where they need more resources<br />
or special skills, and they look elsewhere<br />
for help. They want to use remote services<br />
where they can be effective, and use onsite<br />
staff if there’s wiring involved.”<br />
Werth says, “We’ve learned a lot over<br />
nine years about how to do this in a<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 />
78 | BROADBAND PROPERTIES | www.broadbandproperties.com | November/December 2009
R E V E N U E - G E N E R A T I N G A P P L I C A T I O N S<br />
secure, effective way. A technician can damage someone’s computer,<br />
lose the connection or do other big disservices to the<br />
customer, so customers really do want to make sure they buy<br />
service from a trusted brand. … People don’t trust offshore service<br />
providers. They’re more likely to trust a service if it’s coming<br />
from their telephone company or cable company – those<br />
companies are committed to customer satisfaction.”<br />
IPTV Service in the Cloud<br />
When providers focus on leveraging the bandwidth or equipment<br />
they already have, they may discover a different set of<br />
opportunities, such as retailing new, bandwidth-intensive services<br />
or wholesaling services to other providers.<br />
Application vendor 180SQUARED (www.180squared.com)<br />
recently created a new wholesale opportunity: an IPTV managed<br />
cloud service. 180SQUARED announced Cirrus Managed<br />
Cloud Solutions at the Telco TV show in November; at the same<br />
time, it announced its first customer win for the solution – MBO<br />
Video, a regional network operator based in Oklahoma.<br />
Amir Littman, 180SQUARED’s vice president of business<br />
development, explains that IPTV middleware programs, such<br />
as Microsoft Mediaroom, are not designed for sharing. “The<br />
middleware doesn’t know which telco you [the subscriber] belong<br />
to,” Littman says. If a small telco shares its headend facilities<br />
and middleware with other nearby telcos, all the subscribers<br />
will appear to belong to the same system.<br />
Because 180SQUARED’s Quantum Site Technology can<br />
keep the data from different providers separate, multiple telcos<br />
can share an IPTV middleware installation while each of them<br />
integrates the middleware to its own back-end billing and operational<br />
systems and offers customers its own branded and<br />
customized experiences. After the host company has installed<br />
the IPTV middleware for the first time, it can turn up an additional<br />
provider on the system in less than a month for about<br />
one-tenth the cost of installing it on a new platform.<br />
Reselling IPTV Is Icing on the Cake<br />
Littman calls the arrangement a win-win situation: “From<br />
MBO’s perspective, they’re growing their business – it’s icing on<br />
the cake. From the renter’s perspective, they get access to IPTV,<br />
which, if they only have 500 or 600 subscribers, they couldn’t<br />
have afforded. They can be up and running for less than half a<br />
million dollars, and they don’t have to manage the operation.<br />
They still get to interface with the system and manage their own<br />
subscribers and devices – but the servers are managed in someone<br />
else’s facility. For a provider with less than 1,000 subscribers,<br />
it’s a very attractive offering.”<br />
Providers can sell managed cloud services in one of two<br />
ways: for transport only or for transport and content. Littman<br />
foresees more demand for transport-only offerings. Many small<br />
providers that have already negotiated content deals and begun<br />
offering IPTV would transition to up-to-date middleware if<br />
they could afford it; managed cloud services will make such an<br />
upgrade affordable.<br />
Hybrid models are also possible – for example, a telco could<br />
buy most of its content from the IPTV host provider while<br />
adding a local sports channel (with local ads) of its own.<br />
Entering the Hospitality Market<br />
The Cirrus solution also enables telcos with IPTV to enter the<br />
hospitality market for the first time. “Hotels have always been<br />
out of reach for telcos,” Littman says. “They have a different<br />
model, with real-time billing events” – that is, a pay-per-view<br />
transaction must appear on the hotel bill the next morning,<br />
rather than a month later.<br />
But if a telco partitions an IPTV site for a hotel, the hotel<br />
can integrate its own storefront and billing system to the IPTV<br />
middleware. With the “big two-way pipe in IPTV,” a hotel can<br />
even add credit-card or PayPal processing facilities to the storefront,<br />
allowing guests to pay for video transactions privately instead<br />
of having them appear on the hotel bill. “This will change<br />
the dynamics [of hotel video sales],” Littman says, explaining<br />
that today, many business travelers are deterred from buying<br />
content that they wouldn’t want to appear on their company’s<br />
hotel bill. “From the hotel or motel’s perspective, they’ll be<br />
printing money,” he says.<br />
Littman envisions small regional IPTV service areas developing<br />
across the country. A telco implementing IPTV in its<br />
own territory can easily expand to serve five or six smaller independent<br />
providers nearby, as well as the hotels and motels<br />
within its own market. However, there is no distance limitation<br />
on cloud services. “Theoretically, it could be anywhere in the<br />
world,” Littman says. “The model could evolve over time.”<br />
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80 | BROADBAND PROPERTIES | www.broadbandproperties.com | November/December 2009
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82 | BROADBAND PROPERTIES | www.broadbandproperties.com | November/December 2009
Ad Index<br />
Calendar<br />
Advertiser Page Website December<br />
ADC 5, 81 www.graybar.com/adc<br />
Advanced Media Technologies 37, 80 www.amt.com<br />
AFL Telecommunications 13, 80 www.afltele.com<br />
Alpha Technologies 35 www.alpha.com<br />
Atlantic Engineering 80 www.atlanticengineering.com<br />
Anritsu 36 www.us.anritsu.com<br />
AT&T Inside Back Cover , 80 www.att.com/communities<br />
Blonder Tongue 31, 82 www.blondertongue.com<br />
<strong>Broadband</strong> <strong>Properties</strong> 23, 32, 38, 42A–H, 46, 51, www.broadbandproperties.com<br />
Summit <strong>2010</strong> 52, 63, 79, 84<br />
Calix 1, 80 www.calix.com<br />
Charles Industries 38 www.charlesindustries.com<br />
Connexion Technologies 17, 82 www.connexiontechnologies.net<br />
Corning Cable Systems Back Cover, 81 www.corning.com/cablesystems/<br />
ftthprograms<br />
Design Nine 82 www.designnine.com<br />
DirecTV 3, 81 www.directv.com<br />
Display Systems, Int’l 39 www.displaysystemsintl.com<br />
General Machine Products 22 www.GMPtools.com<br />
Great Lakes Data 47, 82 www.cablebilling.com<br />
Greenfield Communications 82 www.egreenfield.com<br />
Hiawatha <strong>Broadband</strong> 81 www.hbci.com<br />
Michels 29 www.michels.us<br />
Montclair Fiber Optics 82 www.montclairfiber.com<br />
Multicom, Inc. 47, 81 www.multicominc.com<br />
Multilink 75 www.gomultilink.com<br />
OFS 9 www.ofsoptics.com<br />
Quanta Services 11 www.quantaservices.com<br />
RVA, LLC 80 www.RVALLC.com<br />
Spot On Networks 73 www.spotonnetworks.com<br />
Sumitomo Electric Lightwave 15 www.sumitomoelectric.com<br />
Telco Systems 7 www.telcosystems.com<br />
Toner Cable Equipment, Inc. 83 www.tonercable.com<br />
Verizon Enhanced Communities Inside Front Cover, 81 www.verizon.com/communities<br />
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InterContinental Hotel – Dallas<br />
Addison, Texas<br />
“… our experience at the show this year was tremendous! You and your team did a great job recruiting<br />
top notch attendees during a tumultuous market. My sales team set meetings with key retrofit targets and<br />
managed to engage potential future developer partners of which we were previously unaware.”<br />
– Carter Steg, Executive Vice President,<br />
Corporate Sales and Marketing, Connexion Technologies<br />
To Exhibit or Sponsor, contact: Irene Prescott at<br />
irene@broadbandproperties.com, or call 316-733-9122<br />
For other inquiries, call 877-588-1649, or visit www.bbpmag.com<br />
9<br />
FTTH Council Telecom Service Providers Workshop<br />
Hilton Atlanta Downtown<br />
Atlanta, GA<br />
www.ftthcouncil.org<br />
866-320-6444<br />
January <strong>2010</strong><br />
19 – 22<br />
International Builders Show<br />
Las Vegas Convention Center<br />
Las Vegas, NV<br />
202-266-8409<br />
www.buildersshow.com<br />
26 – 29<br />
NATPE Market & Conference<br />
Mandalay Bay Resort<br />
Las Vegas, NV<br />
310-453-4440<br />
www.natpe.org<br />
february<br />
22 – 23<br />
NAA Student Housing Conference & Expo<br />
Mandalay Bay Resort & Casino<br />
Las Vegas, NV<br />
703-518-6141<br />
www.naahq.org<br />
march<br />
23 – 25<br />
OFCNFOEC<br />
San Diego Convention Center<br />
San Diego, CA<br />
202-416-1975<br />
www.ofcnfoec.org<br />
April<br />
10 – 15<br />
NAB Show<br />
Las Vegas Convention Center<br />
Las Vegas, NV<br />
202-429-5300<br />
www.nabshow.com<br />
26 – 29<br />
<strong>Broadband</strong> <strong>Properties</strong> Summit<br />
InterContinental Hotel – Dallas<br />
Addison, Texas<br />
877-588-1649 • www.bbpmag.com<br />
June<br />
24 – 26<br />
NAA Education Conference & Expo<br />
Ernest N. Morial Convention Center<br />
New Orleans, LA<br />
703-518-6141<br />
www.naahq.org<br />
84 | BROADBAND PROPERTIES | www.broadbandproperties.com | November/December 2009
Connected Communities<br />
How they use it is up to them. How you profit is up to you.<br />
OFFER AT&T CONNECTED COMMUNITIES,2 and your tenants get to customize their ideal<br />
mix of voice and Internet connectivity, with superior options that include U-verse TV<br />
solutions and complimentary access at thousands of Wi-Fi locations. And you’ll profit from<br />
our competitive commissions program. Visit att.com/communities to find out how offering<br />
greater flexibility can also flex your income. Stretch.<br />
att.com/communities<br />
Watches sports. Blogs about sports.<br />
All at the same time.<br />
Out for coffee now, recording shows for later.<br />
Runs her business from her PDA.<br />
© 2009 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks<br />
contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies.<br />
Subsidiaries and affiliates of AT&T Inc. provide products and services under the AT&T brand.
From concept to completion ...<br />
Corning is with you every step of the way.<br />
Through its Total Access Program sm (TAP), Corning Connected Community (CCC) and FTTxpert Program,<br />
Corning Cable Systems offers seminars, extended warranties, online technical assistance and hands-on<br />
training to support your FTTH deployments. Whether you are a contractor, service provider or consultant,<br />
Corning has a program for you. www.corning.com/cablesystems/ftthprograms<br />
FTTxpert <br />
Program<br />
© 2009 Corning Cable Systems LLC