Opportunity & Choice for Broadband Networks

Open Access Broadband Infrastructure for 21st Century Vitality

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WHY?

Why should we care about municipal open-access broadband networks?

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OECD Broadband Subscriptions Per Capita

0

5

10

15

20

25

30

35

40Fixed wireless and SatelliteOther Fibre/LAN CableDSL

Source: OECD

OECD Fixed (incl. fixed wireless and satellite) broadband subscriptions per 100 inhabitants, by technology,June 2010

OECD average

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Broadband Quality Score

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It’s About Being Local

Broadband services create economic vitality

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Broadband Services Create Economic Vitality

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Additional Local Benefits

• Education• Health Care• Energy Conservation• Public Safety• Government Services

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What Does It Mean to Me?

• Price• Choice

Competition

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Broadband Availability in U.S.• Percentage of households that meet

goals of National Broadband Plan• Over 14 million people do not have

access to at least one provider that meets National Broadband Plan

• Number of households that are considered underserved

Credit: FCC @ broadband.gov

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Why Don’t People Have Broadband? Cost – 36% cite a reason pertaining to this:

15% specifically point to monthly fee for service10% say they cannot afford a computer9% activation fee/reluctance to enter into long-term contract

Digital literacy – 22% of non-adopters:12% say lack of comfort with computers10% cite hazards of online life (e.g., worries of “bad things that can

happen” online) Relevance – 19% of non-adopters:

Content with current dial-up service/don’t need more speed (5%)Believe internet is a waste of time (5%)Nothing they want to see online (4%)Don’t use internet much (4%)

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Topics

• Why Municipal Broadband?• What Is Municipal Broadband?• Who Is It For?• How Is It Delivered?• Why Isn’t It Taking Off?

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What Is Municipal Open-Access Broadband?• Municipal=Last Mile Network• Open-Access=Equal Access for Any

Service Provider• Broadband100 Mbit/s

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Network Anatomy

TransportNetwork

PartnerCarrier

Metro /Access

Metro /Access

Voice &Video Ops

or MSC/BSC

CO

Adva

nced

Cor

rela

tion

&An

alys

is

L7…

L1L2L3L4

Layer Coverage

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Let The Carriers Build It!• Last-mile networks are the most expensive portion of the network to

deploy• Single purpose last-mile networks are not as economical as multi-tenant

networks• Incumbent service providers are not driving broadband penetration in

underserved and un-served markets– Lack of competition– Lack of choice– Growth stagnates

• Service providers understand the concept of divorcing the network from the service

– Network Service

• Profitability is not achieved in time-frame suitable for public companies• There is not a one size fits all approach

– National Broadband Plan is guideline only– Building infrastructure is a local issue

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Cost of Last Mile Access

• $850 per home passed• $2,125 cost-to-pass per subscriber• $3,225 total investment per subscriber

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Network vs. ServicesManagementLevel

Service/Application Level

Transport Level

Business & Operation Support Systems Billing Provisioning Maintenance Operations

Services Voice (VoIP) Data (Internet, LAN, MAN, & LAN) Video (IP-TV, RFoG) Mobility

Infrastructure & Transport Fiber & Ducts Optical (WDM, PON, Optical Ethernet) Wireless (LTE, GSM, CDMA, Pt-Pt Microwave) Redundant Paths for High Availability

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Who Is The Network For?• Stakeholders

– Government– Education– Health Care– Business– Community

• Service Providers– Business Providers– Residential

Providers– Mobility Providers– Incumbent

Providers

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Business Service Providers• AT&T Business• Cogent Communications• Covad Communications• Cox Communications• Front Range Internet

(FRII)• Global Crossing• Integra Telecom• IP5280• Level 3 Communications

• PAETEC• Qwest Business• Reliance Globalcomm• TDS Telecom• tw Telecom• Verizon Business• Virtela• XO Communications• Zayo Enterprise Services

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Residential Service Providers

• AT&T• AT&T Wireless• Front Range Internet

(FRII)• Fuzecore• IDT• Liberty Media• Mstar

• Prime Time Communications

• Sage Telecom• Sprint• TDS Telecom• T-Mobile• Verizon Wireless• Virtela• Vonage

These are non-incumbent service providers that offer a combination of voice, video, data, and wireless services in other communities.

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Personal Applications• Voice communications/telephony• Teleconferencing• Video Calling• Instant Messaging/Status• Geolocation• Social Networking• Gaming• Blogging• Personal Web Sites• Shopping• Reading• Music: Listening & Purchasing• Music Composition & Recording• Mobility in Applications

• Broadcast Video• Time-Shifted Video• Video on Demand/Movies• Live Events• Photo & Video Sharing• E-Mail• Podcasting/Video Casting• Banking, Investing & Personal

Finances• Hobbies• Travel Planning• Healthcare• Energy Management• Security• Education

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High Bandwidth Personal Applications

• Massively multiplayer online role-playing game (MMORPG)

• High Definition Video on Demand• Energy Management• Security

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Business Applications• Voice Communications/telephony• Voice Conferencing• Video Conferencing/Telepresence• Webinars• E-Mail• IM/Status• Financial Transactions• Business-to-Business Transactions• Marketing• Social Media• Investor Relations• Surveys• Data Storage & Retention• Government Compliance• Customer Relationship Management• Manufacturing Resource Planning

• 2D & 3D Modeling/Supercomputing• Security• Telemedicine• Product Development/Design• Multi-location Communications• Design Transfer to Manufacturing• B2B & B2C Sales• Customer Support/Call Center• Literature Distribution• Claims Adjustment• 2D & 3D Modeling• Animation• Video Distribution• Travel Planning• Expense Reporting• Public Relations

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High Bandwidth Business Applications

• Video Conferencing/Telepresence• Climate & Geo-modeling• Telemedicine• Video Production & Animation• Design Transfer to Manufacturing• Equities & Commodities Trading

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Fit the Network to the Community’s Needs

• Fiber, Wavelength, Bandwidth, or all

• Wireline vs. Wireless

• Partitioning• PON or Active

Ethernet

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Fiber

Ethernet Access•Offer a standard interface•Reduce complexity•Reduce cost•Easier service adaptation•Allow multiple vendors

QoS at Layer 3•Once access pipe size is determined, QoS can be controlled at each end•Eliminate QoS complexity in the access

Copper

OLTDirect Fiber

ADSL, G.shdsl, EFM Long reach

ADSL2+, VDSL, EFM Short reach

GPON

HDSL

Wireless /SatelliteWireless

QoSQoS

IP / PPPoE / Ethernet

ACCESSEthernet Non-Blocking (Engineered)

Ethernet Ethernet CPE /Home

Gateway

BRAS / PE

Ethernet/ MPLS

IPAppli-

cations

EdgeCore UserAccess

“Plug and Play” Ethernet Network

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OLT

FiberBPO

N

Max 32 way split (may be cascaded)

•Typically: 622 Mbps/155 Mbps (down/up)•ATM-based transport

LU #1

LU #N, N ≤32

20 km Maximum Reach20 km ONU differential range

B-PONSplitterITU-T G.983.x

TXR

ONT

Network optical transceiver (TXR) shared by “N” subscribers

TDM PON Architecture and Technologies

EPO

N

Fiber

• 1250 Mbps/1250 Mbps (~850 Mbps effective payload rate)

• Ethernet-based transportLU #1

LU #N, N ≤32E-PON

Max 32 way split (16-way specified in standard)

Splitter1000BASE-PX20 per IEEE 802.3ah

TXRLU #N, N ≤32

ONT

*OLT implementations may not necessarily support all PON technologies indicated

GPO

N

TXRFiber

Max 64 way split (constrained by PMD attenuation

limits)• Typically: 2488/1244 Mbps• GFP-like transports (Ethernet, and/or TDM)

LU #1

LU #N, N ≤64G-PONSplitterITU-T G.984.x

ONT

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Example of WDM-PON

Colorless ONTs: Transmitter and receiver front-end filter characteristics are wavelength adaptable

* “Fixed” optics might be a cost reduced version of convention DWDM long-haul optics NOTE: Most believe adaptable optics will be required for a practical WDM-PON system

Access Node

SNI

Wavelength Splitter

1 to N ls on Single Fiber

Wavelength selection here

Dedicated 1 l pair

Dedicated 2 l pair

ONTBitrate 1

ONTBitrate 2

Feeder Fiber Fixed* or adaptable optics

Power Splitter

TDMA ONT(Fixed Optics)

TDMA ONT(Fixed Optics)Power

Splitter

Hybrid WDM-PON example

OLT

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Intelligent Network Build-Out• Sophisticated planning tool to model network expansion based on existing facilities,

anchor tenants, and interested customers• Model new facilities in minutes with fiber and wireless transport• Quote tail circuits in hours instead of days

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Business Model—Public/Private PartnershipMunicipality• Finances the project• Owns title to infrastructure• Access to right-of-ways• Sets codes and ordinances based

on best practices• Sets pricing for non-discriminatory

access to infrastructure• Interconnection at point-of-

presence (POP) for service providers

• All franchise agreements still valid

Network Operator• Local entity contracts to Network

Operator to intelligently build-out and manage last-mile infrastructure

– Planning and construction– Best practices– Pricing & billing for city– Order management– Service activation– Monitoring & maintenance

• Operator acts as agent for entity to lease/sell last-mile access to residential and business service providers

Assist local entity to plan, build, operate, and sell capacity on open-access, last-mile, fiber-based broadband networks owned by municipality

• Most small cities do not have the expertise to complete such a project• A single community does not offer economies of scale to attract business and residential service providers

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Impediments

• Financial• Legal• Incumbents• Taxpayers

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Competition• Incumbent service providers: telephone and cable

companies (PMO)• Wireless service providers: Verizon Wireless, AT&T

Wireless, Sprint, T-Mobile USA• Satellite service providers: DISH/EchoStar,

DirectTV, HughesNet, WildBlue

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The Future of Open-Access Muni Networks

• Choice• Economical• Societal Benefits• Economic Vitality

A proven business model that will increase broadband penetration in un-

served and underserved areas.

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