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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 />

Dallas<br />

Toward a Fiber-Connected World


April 26-28<br />

Do you have the bandwidth<br />

to attract and keep residents?<br />

<strong>Broadband</strong> at the speed of fiber-optic light. Streaming video and interactive gaming that defy description. The coolest<br />

programming, and more of it, on the purity of HDTV. Pure joy. This is what today’s residents demand. And this is what you<br />

can give them with Verizon FiOS®, the most advanced TV, Internet and phone service available. Set up by our own experts,<br />

who will create a custom installation plan just for you. Verizon FiOS. It’s a clear signal to today’s residents that you get it.<br />

Call 888.376.3608 or go to verizon.com/communities to learn more.<br />

Verizon FiOS tv | internet | phone<br />

verizon.com/communities 888.376.3608<br />

Get Co n n e c t e d at th e S u m m i t<br />

FiOS available in select areas only. Battery backup for standard<br />

fiber-based voice service and E911 (but not VoIP) for up to 8 hours.<br />

©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 />

customer satisfaction ratings than<br />

cable for nine years running*<br />

Why TENANTS want DIRECTV<br />

>> No Contract Required: Switching<br />

is quick and easy – Ask how!<br />

>> Fast & Free Standard Professional<br />

Installation<br />

>> Nobody offers more HD than DIRECTV:<br />

Plus, tenants can enjoy the latest in 1080p<br />

programming and Dolby ® Digital 5.1 surround<br />

sound †† – same as Blu-ray discs<br />

>> No Dish Required:<br />

And no equipment to buy<br />

>> Exclusive Programming: Exclusive<br />

sports packages not available on cable<br />

like NFL SUNDAY TICKET, and MEGA ®<br />

MARCH MADNESS ® plus premium<br />

content on The 101 ® Network<br />

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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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 />

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www.GMPtools.com<br />

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 />

<br />

<br />

<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 />

Dallas, Addison, Texas<br />

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 />

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When ordinary raceway won’t do<br />

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Sales@GoMultilink.com<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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November/December 2009 | www.broadbandproperties.com | BROADBAND PROPERTIES | 79


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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

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