april 14 – 16, 2015 - Broadband Communities Magazine
Transcription
april 14 – 16, 2015 - Broadband Communities Magazine
APRIL 14 – 16, 2015 Renaissance Hotel – Austin AUSTIN Early Bird Special Rate 350 $ (Save $545 off regular Summit price of $895) Offer to expire soon. Use VIP Code: BBCSUB Co-located with the 2015 Broadband Communities Summit twitter.com/bbcmag TO SPONSOR OR EXHIBIT: email: [email protected] www.bbcmag.com 505-867-3299 APRIL 14-16, 2015 • GIGAFYAMERICA.COM • AUSTIN SUMMIT VALUABLE INSIGHT EXPOSURE TO PEOPLE ACROSS THE INDUSTRY “Summit always provides valuable insight into market trends.” – Brian Pagnella, Senior Consultant Broadband Realty Advisors KEYNOTES WERE EXCELLENT “I appreciate the visionary forecasts of experts in the field of broadband. Keynotes were excellent. Lots of insights and great stories.” – David Moore, Director Louisiana Broadband Initiative “Good industry overview, exposure to people across the industry and industry information.” — E ric Friedman, President Housing and Community Solutions, Inc. PERTINENT TO COMMUNITIES KNOWLEDGEABLE AND INFORMATIVE “Very important, useful and impactful information pertinent to communities building and supporting networks.” –A llen Meyer, Business Development Manager BHC Rhodes “Good clarification of options and recommendations for future considerations when planning infrastructures. All [panels] were good – information valuable! Speakers were very knowledgeable and informative.” – Christine Taylor, Manager, Ancillary Services Forest City Residential Management SPEAKERS WERE AWESOME “All the speakers were awesome and the presentations were great.” —D onna Sullivan, Technical Assistant Director NC Department of Commerce – NC Broadband PERSONAL EXPERIENCE BASED EVENT “Very useful, hands on, anecdotal, personal experience based event.” –M ichael Anderson, CIO Spiral Internet SUBSTANTIAL INFORMATION TO HELP OUR STRATEGY “Well planned and good updated information … substantial contact and information to help our strategy.” – Rick Mervine, Vice President, Strategic Planning OnlIght Aurora Here’s what attendees are saying about the 2014 Summit! April 14–16, 2015 • Renaissance Hotel - Austin • www.bbcmag.com To sponsor or exhibit: email [email protected] or call 505-867-3299 Make plans to attend the 2015 Summit now. GIGAFY CO-HOST & SPONSORS OFFICIAL CORPORATE HOST: DIAMOND SPONSOR: PLATINUM SPONSOR: GOLD SPONSORS: FEATURED SPONSORS: SILVER SPONSORS: To exhibit or sponsor, contact: Irene G. Prescott at [email protected], or call 505-867-3299 AMERICA EXHIBITORS ® DESIGN NINE we build networks that perform D IGITA L TRENCH'N edge™ Micro Tre TRENCH'N edge™ Micro Trencher To exhibit or sponsor, contact: Irene G. Prescott at [email protected], or call 505-867-3299 A BIG YEAR FOR BROADBAND: New Economics, New Technology, Net Regulations WHY ATTEND THE SUMMIT: For broadband, the recession is over... but the landscape has been altered. Indeed, a perfect storm is brewing over the broadband industry: • Regulatory issues (net neutrality, fast lane... and more) • Massive data flows over myriad wireless devices in homes and businesses • The latest technological marvels such as DOCSIS 3.1, carrier-grade Wi-Fi, the “Internet of Things,” and software-defined networking • New housing economics – a boom in multiple-dwelling-unit construction but for rentals, not ownership • Renewed government interest in (and incentives Substantial contact for) broadband at and information to all levels for public help all strategies safety (FirstNet), global climate change issues (smart grid, energy conservation), and economic development It is no wonder that the availability of fiberborne connectivity continues to increase – a 10% growth in premises passed by fiber in 2014 alone! Sure, there are other events centered on broadband technology. But year after year, only the Broadband Summit focuses on what the technology means for your business. Only the Broadband Summit details the ever-changing business cases for all stakeholders, from MDU owners and managers to legal and technical specialists. Excellent content, plus the best opportunities to network That’s why Broadband Communities survived and thrived during the recession. That’s why attendance at the Summit never faltered. Good times and bad, there are always worries, changes, reasons to find shelter and reasons to do business. Earn and learn at the next Summit, Austin, April 14-16, 2015. WHO SHOULD ATTEND: MDU owners and managers. Have you figured out where and how to provide the symmetrical, versatile and reliable broadband your residents need for entertainment, working at home, health care, education? What about their mobile phones and tablets? Is a distributed antenna system best for your situation? Or installations by cellular carriers? Or managed Wi-Fi? Or a few other tricks you’ll explore at the Summit? How will all this change the legal contracts you sign? What’s the regulatory risk? Summit 2015 returning once more to the Renaissance Austin Hotel, within easy driving distance from the city’s main airport, The Austin-Bergstrom International Airport (AUS). AUSTIN Can you improve the business case with networks that meet other needs? The 2015 Summit welcomes CABA, the building technology folks, with a day of sessions on making that all work. And of course, there’s the totally updated MDU track. Last year’s news won’t help! State and local officials. Considering a network of your own? Enticing and incentivizing a private carrier? Your region’s economic growth and quality of life depends on it. Two robust tracks -- one on economic development, one specifically on rural issues run by the RTC -- will get the juices flowing. Carriers. Whether you represent a rural ISP or an urban CLEC or private cable operator, you’ll get the business case for new technologies and the emerging regulatory and funding landscape. DOCSIS or end-to-end PON? Firmware or software-defined networks? Public-private partnerships? MSO or PCO? WISP or ISP or campus IT partnership? Revenue strategies with staying power? Find it all at the Summit. The 2015 Summit welcomes the CABA Intelligent Buildings & Digital Home Forum, collocated with this year’s BBC Summit. Planners. Get the details your academic coursework never covered. Broadband infrastructure is perhaps the least expensive and fastest way to add to infrastructure, attract growth, and improve quality of life. Consultants, contractors, designers, network planners. You already know about the Summit’s business-creating opportunities. You know that most attendees are real customers looking for real solutions -- they are not other vendors! Learn from the masters, too. AT&T Connected Communities hosting the must-attend Welcome Reception! Hint: Bring your flip flops, shorts, Hawaiian shirts, and beachcomber hats. AMENTIES INCLUDE: • THREE Evening Cocktail Receptions • THREE Continental Breakfasts • MAJOR Keynote Awards Luncheon • TWO Working Lunches • MULTIPLE Refreshment Breaks 50+ SESSIONS WILL HIGHLIGHT: Don’t miss the new “Wireless Revolution” general sessions. Good wireless depends on good fiber backhaul and local area networking. Today’s fiber business cases depend on wireless revenue. See how, see the latest technologies and business cases. Developers and Builders. Sure broadband is good and more broadband is better. But where do you get the funding? How do you structure the business case? Who does the work? What are the risks? In Summit panels, world-class talks by top officials and experts, workshops and the many opportunities for casual discussion, the Summit delivers. • The Wireless Revolution • Financing Fiber Networks – day-long program • World-Class Keynotes • The latest rural strategies • New market research for MDUs and more • Latest economic development strategies REGISTER NOW AND GET MAJOR DISCOUNTS Don’t delay. Low early rates will expire soon. GIGAFY 2015 Broadband Summit Chairmen Lending Their Expertise to the Creation of a Timely, Dynamic Program CEO and Lead Consultant NEO Fiber Diane Kruse President The Baller Herbst Law Group, PC Bryan Rader CEO Bandwidth Consulting LLC The Hon. Hilda Legg Andrew Cohill Roland Cole Kyle Hollifield Jane Patterson President Design Nine Jim Baller Senior Fellow Sagamore Institute Magellan Advisors Vice Chairman Broadband Communities Magazine Former RUS Administrator and Vice Chair, Broadband Communities Secure your seat today by calling 877-588-1649, or visit our website at www.bbcmag.com President The View Forward AMERICA THE SUMMIT is the leading event for network builders and deployers The Broadband Communities Summit is the leading venue for information on digital and broadband technologies for buildings and communities. With a focus on residential properties, developments and municipalities, the Summit has become a must-attend event for network builders and large-scale and wholesale buyers and users of broadband technologies, equipment, and services. An Essential Venue For Industry Leaders Developers and property owners attending the Summit include representatives from such organizations as: Matthew Murphy, President, Grande Communications and Dahna Hull, Vice President and General Manager – Austin AT&T Services, Inc. present keynotes on Austin’s Gigabit rollout. Hillwood Communities – A Perot Company • Trammell Crow Residential • Buckingham Companies • Education Realty Trust • Fairfield Residential • Peak Campus Management • Special Full-Day Camden Property Trust • Forest City Residential • AIMCO • American Campus Communities Program on • AMLI Residential • Associa • Atticus Real Estate • Herman & Kittle Properties • KB Home Financing Fiber • Landmark Properties • Laramar Communities, Networks LLC • Midtown Alliance Development • Avalon Bay Communities • Baxter Southwest Corporate Realty Top Venue for Services • BH Management • BRE Properties • Campus Unveiling LeadingLiving Villages • Post Properties • Preiss Company • Pulte Group • Raymond James Real Estate • Related Companies • Capstone Real Estate Management • Carmel Partners Edge Research Developers • Casey Development Ltd • Choice Property Resources • Colonial Properties Trust • Edward Rose Companies • Equity Residential • Essex Property Trust • Flournoy Properties • H Properties LLC • Mills Properties • Picerne Development Known As The • Riverstone Residential Group • The Michelson Organization • The Roberts Top Event For Companies • Tonti Properties • Trimarchi Property Best Networking Management • Trump Organization • UDR Inc. • Verde Opportunities Apartment Communities • Village Green Apartment Communities • Waterton Residential • Westdale Asset Management. Broadband providers in attendance include the major incumbents – telco, cable and satellite – plus private cable operators, rural telcos, competitive overbuilders, municipalities, and more. Economic development professionals, state broadband officials and community broadband activists are also well represented. Rondella Hawkins, Telecommunications and Regulatory Affairs Officer, City of Austin, Texas To exhibit or sponsor, contact: Irene G. Prescott at [email protected], or call 505-867-3299 FIBER: It’s a New Ball Game NEW technology, NEW regulations, NEW revenue opportunities even for small operators... 2014 set the stage for making the gigabit nation a reality. 2.7 million homes were newly passed with fiber -- the best year since 2008 and double the low point of 2011. Take rates have continued to rise for FTTH builds, even as deployments have jumped ahead. Competitive overbuilds now are closing in on 50 percent of all available customers signing up. On the technology side, it’s all positive: But there’s regulatory uncertainty: • Wireless gateways. • Cellular backhaul through Wi-Fi. • DOCSIS 3.1. • New BSS/OSS software. • New ways to manage networks. • Growth of Data Centers. • Optical LANs for business. • Net Neutrality. • State restrictions. • Mega-mergers. And there are clear trends in content consumption: • Cord-cutting. • On-demand content. • Need for faster uploads. Learn the latest about the industry, and network with your peers at the speed of light. It’s all at the 2015 Broadband Summit! Introducing the NEW 2015 MDU Chairmen, Property Owner Advisory Panel and the Educational Advisory Group Expanded Multi-Housing Program An Agenda Developed by Industry Leaders THE NEW 2015 MDU CHAIRMEN Cheryl Barraco Director Of Telecommunications Avalon Bay Communities, Inc. Kathleen Austin Assistant Vice President Equity Residential THE 2015 ADVISORY PANEL OF PROPERTY OWNERS Scott Casey Sr. VP & Chief Technology Officer EdR Michael Hallbrook AVP of Business Development Mid-America Apartment Comm. Lori Reeves Vice President Forest City Management Karen Seeman Director, Ancillary Income Essex Property Trust Letitia Tucker Director, Ancillary Services UDR Inc. Barney Pullam Vice President, Business Process Waterton Residential THE 2015 EDUCATION ADVISORY PANEL Steve Merchant VP, Revenue Strategy Equity Residential Linda Willey Director, Ancillary Services Camden Property Trust NEW SYNERGY Between Wireless and Fiber Businesses, building owners and building managers need more wireless connectivity for tenants’ portable devices -- and only fiber can provide it. Deployers of fiber networks need easier, more economical ways to provide reliable, high-bandwidth connections to fixed as well as mobile devices in homes and businesses. New carrier-grade Wi-Fi gateways have emerged as an almost magical solution, Much of the cost of FTTH has been for in-home wiring. Homeowners’ objections to FTTH have often centered around in-home wiring. Now far-sighted industry leaders are asking: Chris Curtin, Director, Verizon Enhanced Communities and Mathew Beattie, Executive Director, Fiber-to-the-Building Program, AT&T talk about delivering fiber broadband to multi-tenant office buildings. “What if in-home wiring were no longer needed?” Yes, cellular operators are trying hard to get their customers making calls through their WiFi connections. But customers on DSL or cable often report that their phones have problems connecting to their in-unit Wi-Fi, and that if they leave the unit while talking, the call often is dropped. That’s a recipe for trouble, especially in MDUs. But A Place solutions are here, now Where Deals – building-wide wireless Get Done antenna systems and inthe-home “carrier-grade” gigabit wireless gateways that are about to make in-home network wiring obsolete – if you use the right wireless technology. Right now, that’s the Wi-Fi “802.11ac” standard with 4x4 MIMO antennas. How would that impact your business case for fiber? At the Summit, Three Evening Cocktail Receptions Planned the experts will tell you what it means to cash flow and to the bottom line, what it means to owners and renters, and what it means when you sign contracts with providers. 2015 Cornerstone Awards and Keynote Luncheon • Find out about the Wi-Fi revolution that promises to make high-bandwidth home networks invisible, inexpensive and easy to manage from the network operations center. • You’ll get the most timely, most understandable, and most in-depth look at this subject at Summit 2015, in a special threehour general session and in additional, specific panels covering the technical, regulatory and customersatisfaction issues. • You’ll get comprehensive answers to such Jonathan Chambers, Chief of questions as the Office of Strategic Planning, Federal Communications defining service Commission holds a level agreements, roundtable breakfast with a ownership of network captivated crowd. devices in a building, the handoffs between a unit-owner’s Wi-Fi and the building’s managed wireless network... and more. DON’T DELAY. LOW EARLY RATES WILL EXPIRE SOON. REGISTER TODAY. OUR MISSION Helping Communities Take Control Of Their Broadband Future Jim Baller, Chairman, Economic Development Program JIM BALLER is the chairman of the Economic Development program at the Summit and at regional events produced by Broadband Communities around the country. With the unique credentials of both economic development expert and the nation’s leading telecom lawyer for municipalities seeking next-generation networks, Jim Baller has a special appreciation for your community’s concerns. He knows these concerns involve creating jobs, attracting and retaining businesses, fostering economic development and contributing to America’s global competitiveness. As Chairman of the Economic Development Program at our next Broadband Communities Summit, he has described his mission as follows: “Our mission is to help you meet these goals – as rapidly and effectively as possible.” To that end, our Austin economic development track will explore the relationship broadband and economic development in every session, with every speaker, and from multiple angles. As a recent attendee observed, “There were town planners, activists, civil servants, elected officials, academics, consultants, economists, not-forprofits, educators, healthcare experts, regulators, lobbyists, lawyers, trade groups, analysts, design/build firms, hardware, software and outside plant vendors, among many others … The conversation revolved around ‘how?’ rather than ‘why?” Go here for the full review: http://goo.gl/pLh9T9. Attendees will get useful, practical information – including insights, examples and principles – that they will be able to take home and put to use at once. We’re bringing together leaders and individuals at the very center of America’s gigabit revolution – in a city that is taking advantage of the development of entirely new fiber infrastructure. As a result, Austin is an ideal place to explore the best ways of linking the communications infrastructure of the future to economic vitality and the quality of life. Attendees will also receive a wealth of economic research, case histories, how-to materials, and other practical information to take home and use effectively in their communities. In our workshops and sessions, we will address the latest, hottest topics – including Google Fiber, telemedicine, distance learning, overcoming legal challenges, and much more. Attendees will learn about Austin, of course, but also about many other state, regional, and community networks. We’ll address several ways to improve a community’s chances of getting a gigabit network, including approaches to attract privatesector network providers, develop public-private partnerships, and collaborate with vendors. We’ll also highlight a variety of successful efforts to fund advanced communications capabilities – including investments in education, healthcare institutions, and community anchors in underserved areas. Other topics include: • the social and economic opportunities that ultra-fast broadband provides citizens and businesses • the benefits of creating commercial and innovation corridors • the value of broadband in bolstering neighborhood safety, enhancing education and improving health care services • and much more We’ll also have ample time for networking and learning about relevant cutting-edge products and services. Corinne Hill, Executive Director, Chattanooga Public Library RURAL ISSUES at the SUMMIT Rural TeleCon: Co-Locating for the 6th Consecutive Summit For the USA to thrive, rural America must have access to world-class broadband. Nearly 60 million Americans live in rural counties. Since 2010, for the first time in American history, that number has been dropping! Nationwide, Broadband Communities has uncovered a clear link between inadequate broadband and rural distress. WHY ATTEND? Get the information rural America needs to achieve high speed broadband. Rural TeleCon Austin is aimed at developing policies, strategies and best practices to enable states and communities to expedite deployment of critical infrastructure and support the use of nextgeneration broadband for rural prosperity. WHAT YOU WILL LEARN • Accomplishments of the State Broadband Initiative that can drive rural America to move forward with high speed – even gigabit – broadband. • The Internet of Things is critical to rural users, who often lack electricity grid redundancy and will require stronger connections to emerging, variable, wind and solar alternatives. Join Mark Johnson and Jane Patterson. • Monitoring rural America’s health. An all-star panel including Galen Updike of Arizona and David Kirby of the North Carolina Telehealth Network will discuss three years of experience providing real data on such issues as privacy and security successfully dealt with. WHAT YOU WILL DO • INTERACT in sessions on the $7 billion FirstNet initiative. • EXPLORE best practices on the “how to’s” of rural collaboration. • CONNECT with leaders and stakeholders at networking sessions and receptions. • EXAMINE criteria and guidelines for using technology to have significant impact in rural communities. • Education and its impact on rural America at • HEAR from experts on successful projects that the community level. Frank Odasz leads a panel exemplify collaboration and partnerships. on digital literacy training, digital textbooks and • Panel on rural users. How much broadband WHO SHOULD ATTEND rural libraries, to provide information to take they use, what they need, user demographics • Representatives from all communities with back for Community Access Institutions. and more. current or planned broadband initiatives. • Plows to tractors to computers to prosperity. • Case studies of successful deployments from • Leaders in Economic Development, Education, Economist Michael Curri presents the latest Jason Whittet of IDC – Lessons to take home to Healthcare, Government, Public Safety. economic statistics that drive home the guide future deployments. need – and the opportunity – for high speed • Officials from the USDA, FCC, NTIA, USAC in • Farmers as data scientists. Keith Montgomery broadband. Panel includes Joel Mulder of G4S telecom and rural development. on tools (mechanical and informational) needed on how people deploy rural broadband now • State telecom and broadband mapping and by farmers. Innovative corporate responses to and how they will in the future. planning leaders. assist with broadband access, from John Deere, MacDonald’s and more. Collaborating for Rural Broadband at the Community, State and Federal Levels Eric Mills, General Counsel, Connected Nation, Inc. addresses a full crowd. p SIX FREE PRE-CONFERENCE WORKSHOPS Come Early For This Opportunity Each FREE two-hour workshop is a $1,500+ value Workshops on Monday, April 13th · All registered attendees are welcome at no extra charge · Each attendee can attend three workshops Workshop #3: Gigafying the MDU Workshop Leader: Richard Holtz – CEO, InfiniSys · Learn from leading experts teaching six valuable sessions Workshop #4: Telehealth: Its Impact on a Community’s Economic Well-Being Workshop Leader: TBA Workshop #1: Hands-on Financial Modeling for MDUs Workshop Leader: Steve Ross – Editor-at-Large, Broadband Communities Workshop #5: Legal Issues Affecting Broadband Projects Workshop Leaders: Sean Stokes and Casy Lide – Principals, The Baller Herbst Law Group, PC Workshop #2: FirstNet’s Promise and Benefits to Rural Broadband Workshop Leader: Lisa Leahy – Associate Executive Director, ConnectME Workshop #6: Introduction to Fiber-to-the-User Networks Workshop Leader: Larry Johnson – Founder and President, The Light Brigade · No limit on the number attending from any individual company SUMMIT 2015 Special One-Day Program April 13, 2015 FREE to all registered attendees Topics: · Government financing mechanisms · Private financing mechanisms – traditional · Private financing mechanisms – emerging and DIY · Financing for public/private partnerships For each financing mechanism, learn: · How it works · Who’s eligible · What kinds of projects are appropriate · What funders/investors are looking for · How to apply · Advantages and disadvantages · How to combine it with other types of financing Book your seat today. No additional charge to registered attendees. THE LIGHT BRIGADE TO HOST 2‐DAY FTTH CERTIFICATION COURSE AT SUMMIT Course Days: April 13 – 14, 2015 This two-day course will address FTTH design and planning, physical network architecture, video systems, Ethernet/IP networks, business and economic issues, and future migration considerations. Taught by The Light Brigade to certify FTTH professionals, the FTTH Council’s Certified Fiber-to-the-Home Professional (CFHP) program is the only curriculum and examination program specifically designed to determine and certify professional competence in FTTH design, architecture, deployment and administration technologies. Vital for engineers, consultants and contractors who need to be brought up to speed on FTTH. Useful for manageriallevel personnel and government officials involved with overseeing, contracting, financing or regulating fiber. Make plans to attend! Separate CFHP registration required: • CFHP Course: $1,000 • CFHP Course PLUS Summit Registration: $1,500 EDITOR’S NOTE Converting the Skeptics CEO & EDITORIAL DIRECTOR Scott DeGarmo / [email protected] PUBLISHER Nancy McCain / [email protected] EDITOR Masha Zager / [email protected] EDITOR-AT-L ARGE Steven S. Ross / [email protected] ADVERTISING SALES ACCOUNT EXECUTIVE Irene Prescott / [email protected] Go, tell it on the mountain: Broadband fuels economic growth. ONLINE NEWS EDITOR Marianne Cotter / [email protected] DESIGN & PRODUCTION Karry Thomas CONTRIBUTORS Joe Bousquin David Daugherty, Korcett Holdings Inc. Joan Engebretson Richard Holtz, InfiniSys W. James MacNaughton, Esq. Henry Pye, RealPage Bryan Rader, Bandwidth Consulting LLC Robert L. Vogelsang, Broadband Communities Magazine BROADBAND PROPERTIES LLC CEO Scott DeGarmo VICE PRESIDENT, BUSINESS & OPERATIONS Nancy McCain CHAIRMAN OF THE BOARD Robert L. Vogelsang VICE CHAIRMEN The Hon. Hilda Gay Legg Kyle Hollifield BUSINESS & EDITORIAL OFFICE BROADBAND PROPERTIES LLC 1909 Avenue G • Rosenberg, Tx 77471 281.342.9655 • Fax 281.342.1158 www.broadbandcommunities.com Broadband Communities (ISSN 0745-8711) (USPS 679-050) (Publication Mail Agreement #1271091) is published 7 times a year at a rate of $24 per year by Broadband Properties LLC, 1909 Avenue G, Rosenberg, TX 77471. Periodical postage paid at Rosenberg, TX, and additional mailing offices. POSTMASTER: Please send address changes to Broadband Communities, PO Box 303, Congers, NY 10920-9852. CANADA POST: Publications Mail Agreement #40612608. Canada Returns to be sent to Bleuchip International, PO Box 25542, London, ON N6C 6B2. Copyright © 2014 Broadband Properties LLC. All rights reserved. F or the 11th consecutive year, this magazine devotes its endof-year issue to broadband’s effect on economic health. You’d think there would be no one left to convince, but that doesn’t seem to be the case. For example, the author of a recent article in the Tennessee Watchdog was shocked – shocked! – to discover that people use broadband for entertainment. This undermines the claim that broadband is needed for economic development, he said. The point is not that broadband users watch football games and cat videos or read celebrity gossip. Drivers on public roads may be headed toward karaoke bars, but people still need roads to keep the economy moving. Electricity powers video game consoles, but it also powers factories. Rather, the point is that, without broadband, people have a hard time making a living, getting an education, updating their skills or staying healthy. And the bar is rising – in the article Bad Broadband Equals Low Population Growth (p. 92), Steve Ross notes that it now takes 25 Mbps broadband to keep economies ticking; counties without widespread access to 25 Mbps broadband are experiencing low population growth or even population loss. The population exodus might be even greater were it not for the fact that older residents have their life savings tied up in houses that have become essentially unsalable. The article The Killer App for Local Fiber Networks (p. 96) summarizes a vast body of statistical and anecdotal evidence showing that broadband is good for local economies, and more broadband is even better. Most of the research and case studies cited have appeared in the pages of this magazine over the last decade – but their cumulative effect is powerful. It’s hard to imagine that seeing them all in one place wouldn’t convince even the most hardened skeptic. SPREAD THE WORD Skeptics must be convinced, or the United States will continue to lag behind other developed nations in building, adopting and effectively using advanced broadband. City leaders need to understand that they are missing opportunities to improve their citizens’ lives and life chances. They can start by reading Stephen Goldsmith and Susan Crawford’s book “The Responsive City” and the Intelligent Community Forum book “Brain Gain,” both of which are excerpted in this issue. I urge readers to distribute the articles in this issue as widely as possible. They are all freely available online at www.bbcmag.com in several formats. Send them to the people in your community who need convincing. And talk to us about getting copies of the new edition of the FTTH primer, which is included within the pages of this magazine but will also be printed separately. The primer, written in nontechnical language, has helped build community support for many broadband projects. v [email protected] Did you 2014 like this article? Subscribe here! 14 | BROADBAND COMMUNITIES | www.broadbandcommunities.com | NOVEMBER/DECEMBER One gigabit per second. Now that’s a high-speed amenity. XFINITY’s Advanced Communities Network provides fiber solutions to gigabit speeds for your property. Every resident wants more Internet speed. As an XFINITY® Community on our exclusive Advanced Communities Network, your property will be gigabit capable, ready to support the latest integrated TV, Internet, Voice and Home Automation experience with the X1 Entertainment Operating System® from XFINITY. And since every property is unique, we customize our fiber solutions to fit your environment. Plus, we constantly monitor our network for consistent, reliable service and our customer support is available 24/7. Become an XFINITY Communities property and get a better network, better entertainment and better service. Visit comcast.com/xfinitycommunities today. 1–800–XFINITY The Voice available with XFINITY On Demand,™ at xfinity.com/tv and on XFINITY TV Go app Not available in all areas. Restrictions apply. Availability limited to qualifying properties. Features and programming vary depending on area and service level and are subject to change. Call for restrictions and details. © 2014 Comcast. All rights reserved. NBCU celebrity endorsement not implied. All networks are divisions of NBCUniversal. © NBCUniversal Media, LLC. All rights reserved. TABLE OF CONTENTS COVER STORY – ECONOMIC DEVELOPMENT 92 Bad Broadband Equals Low Population Growth / An original Broadband Communities study based on National Broadband Map and census data shows a 10-fold difference in population growth rates between broadband haves and have-nots. By Steven S. Ross, Broadband Communities 2014 FIBER-TO-THE-HOME PRIMER 39 What Fiber Broadband Can Do for Your Community/ By the Editors of Broadband Communities This nontechnical publication, newly updated by the editors of Broadband Communities, is a proven tool for building community support for broadband. FEATURES FTTH DEPLOYMENTS 22 Q&A With Stephen Lane, InteliPort An ISP in North Carolina is building out fiber to the home using backhaul from a BTOPfunded middle-mile network. 26 Bolt Lights a Spark in Oklahoma / By Masha Zager, Broadband Communities A rural electric co-op in Northeast Oklahoma gets ready to launch gigabit services. 2015 BUYERS GUIDE 30 Buying for Ultra-Broadband Builds and Services Where to buy equipment, software and services for delivering voice, video and data. ECONOMIC DEVELOPMENT 71 The Responsive City: Chicago / How broadband apps enable Chicago to improve city services. 72 Smart Cities and Broadband / By Kathleen McMahon, Applied Communications The smart-city movement can make cities more livable, sustainable and competitive. 76 The Stratford Story / 82 PROVIDER PERSPECTIVE 20 Are You Still Chasing Road Runner? / By Bryan J. Rader, Bandwidth Consulting LLC To win the race, private cable operators need more than higher speeds. THE GIGABIT HIGHWAY 108Future-Proof Communities / By Heather Burnett Gold, FTTH Council Americas A next-generation network is a prerequisite for a flourishing community. DEPARTMENTS 14 EDITOR’S NOTE 18 BANDWIDTH HAWK 106MARKETPLACE ADS 107ADVERTISER INDEX / CALENDAR By Stephen Goldsmith and Susan Crawford, Harvard University ABOUT THE COVER By Robert Bell, John Jung and Louis Zacharilla, Intelligent Community Forum Strategic use of broadband helps a small city in Ontario, Canada, punch above its weight in the national economy. The Challenge of Mass Innovation / By Frank Odasz, Lone Eagle Consulting Grass-roots economic development shouldn’t be ignored – and it may not require gigabit bandwidth. 86 Community Fiber Networks Boost Economic Development / Highlights of the Broadband Communities Northeast regional conference. 96 The Killer App for Local Fiber Networks / What’s the most important use for a fiber network? Most communities would say it’s economic development. Cover artist Irving Grunbaum imagines the intersection of supply, demand and bandwidth. A BBC Staff Report By Jim Baller, Joanne Hovis and Ashley Stelfox, Coalition for Local Internet Choice, and Masha Zager, Broadband Communities TECHNOLOGY 104 Nontraditional PON Architectures / By Tom Anderson, CommScope IN THIS ISSUE Visit www.bbcmag.com for up-to-the-minute news of broadband trends, technologies and deployments t witter.com/bbcmag Creative solutions for areas with limited fiber and spread-out neighborhoods. 16 | BROADBAND COMMUNITIES | www.broadbandcommunities.com | NOVEMBER/DECEMBER 2014 BANDWIDTH HAWK Bandwidth: Good for Rural Residents, Good for the Country The broadband haves and have-nots share the same economy. By Steven S. Ross / Broadband Communities R ailroads. Canals. Harbors. Roads. Airports. Electricity. Schools. Water. And now, broadband. After more than a decade of producing annual issues that highlight economic development, this magazine has progressed from proving that bandwidth produces jobs to proving that more bandwidth produces more jobs. The evidence, detailed in this issue (p. 92), is overwhelming and disturbing. An exclusive Broadband Communities analysis of data for all 3,144 U.S. counties shows that counties in the bottom half of their state rankings for access to 25 Mbps download speeds had a population growth of only 0.27 percent from 2010 through the end of 2013. The top half enjoyed growth of 2.79 percent – more than 10 times greater. In actual numbers, counties in the bottom half of their state rankings added just 134,390 people, and those in the top half added more than 7.2 million. The counties ranked in the lowest 10 percent for broadband access lost 0.55 percent of their population on average. The top 10 percent gained 3.18 percent. The single top-ranked counties in each state grew even faster – 3.61 percent. Most, though not all, of the disadvantaged counties are rural. Their population densities are low, and the business case for good broadband there is worse than in urban areas. Indeed, for the first time in the nation’s history, from 2010 to 2012 the majority of rural counties lost population. Many would say that’s tough, but capitalism is a hard taskmaster. If it is more efficient for people to live in cities, why should anyone try to interfere? Here’s why: • First, the regulatory system is rigged against rural areas; the game isn’t fair. • Second, when rural residents have to move to cities, new infrastructure must be built in cities to accommodate them. • Third, any policy that fosters income disparities reduces countries’ potential for economic growth. • Fourth, if you eat food, you depend on people being able to live, work and communicate in rural areas. That’s where the farms are. The Organization for Economic Cooperation and Development says reducing income inequality would boost economic growth. Countries where income inequality is decreasing grow faster than those with rising inequality. The United States lost between 6 and 10 percent of its prerecession growth to inequality. The impact of inequality on growth stems from the gap between the bottom 40 percent and the rest of society, not just the poorest few. The best remedy is to increase access to public services, such as highquality education, training and health care – the very services broadband can help deliver most efficiently. The study, Trends in Income Inequality and Its Impact on Economic Growth, is available at www.oecd.org/social/ inequality-and-poverty.htm. In developed countries, population change is a good proxy for economic change. The population grows in regions where there are jobs, and each new job creates more jobs as the newly employed spend their earnings. The fact that 19 states restrict communities from building their own broadband networks not only hurts communities that lack broadband but also increases the need for public expenditure on schools, roads and other infrastructure in places that are advantaged. It also weakens the capital base of rural lenders because of the deflation of rural asset values. Lawmakers say the issue is fair competition. However, the very ability of municipalities to threaten construction of their own systems often rouses private enterprise to improve existing infrastructure. Some incentives exist for publicprivate partnerships as well. These should be improved and backed with access to needed new capital. Public entities “lose” money on schools, roads, police, and fire protection. A public entity merely has to break even on broadband, as it does for water and power. On average, fiber-to-the-home deployers can break even today with about eight paying households per road mile. The national average is almost 50 premises per road mile, of which about 25 would become paying customers. But large corporations cannot merely break even. They cannot merely do well. They have to do better than their industry peers. They can’t do that by building in depressed areas. That has to change. At the Broadband Communities Summit in Austin next April, get all the latest data and the latest thinking on all sides of the issue. Your success and the future prosperity of the United States may depend on it. v Contact the Bandwidth Hawk at [email protected]. Did you 2014 like this article? Subscribe here! 18 | BROADBAND COMMUNITIES | www.broadbandcommunities.com | NOVEMBER/DECEMBER PROVIDER PERSPECTIVE Are You Still Chasing Road Runner? Private cable operators have to keep up with changing expectations about speeds and products – but that’s not how they’re going to win the race. By Bryan Rader / Bandwidth Consulting LLC T he high-speed business has changed so much over the last 20 years. In the mid-1990s, cable operators such as Time Warner were looking for ways to convert their cable plant to offer broadband. It started a trend of rapid change in the cable industry. After Time Warner tested a DOCSIS cable modem with select customers, it officially launched a high-speed product on September 10, 1996, in Akron, Ohio. Time Warner called the service Road Runner, after the bird that the Warner Bros. cartoon character Wile E. Coyote chased for decades. After this product launch, the industry was off to the races. High-speed cable was a step up from the DSL service that telcos offered and was certainly a big improvement over the very popular AOL, which used a dial-up connection – twice as expensive but a hundred times faster. By the end of 1998, the cable industry had 550,000 high-speed Internet customers. As we all know, this was just the beginning. The initial 256 Kbps product was expanded to 500 Kbps and then to 1 Mbps. Speeds grew, bundles expanded and customers always wanted more, even while price points remained relatively constant. The cable industry has followed the Road Runner down the Internet superhighway to speeds of around 1 gigabit. Applications evolved to include streaming of every kind of video content using all types of devices. Usage skyrocketed from 30 minutes a month per household in 1998 to more than 500 hours a month per household. The industry has more than 60 million customers in the U.S., and it’s still growing. Time Warner’s selection of the Road Runner image was right on target, as speeds increased, features expanded and quality of service was redefined every year. Pretty scary cartoon depiction of the cable market, right? Each year, customers want more speed, and competitors are always willing to give it to them. KEEPING UP WITH CHANGE It’s hard to compete in a market that’s always going through radical change. How can an operator keep up? In many ways, though, the “market” hasn’t changed at all. Yes, the products continue to evolve. But customers, audiences and the business itself haven’t changed at all. Last month, I moderated a panel of longtime multipledwelling-unit (MDU) property owners who were nationally recognized as industry leaders. When asked about how things have changed, they rattled off new floor-plan concepts, different countertop qualities and unique common-area amenities, such as rock-climbing walls. Their message to private cable operators (PCOs) was, “You still have to satisfy my residents with better service than the local cable company, you need to develop a strong relationship with my on-site team and you should customize the right product offering to make my community special.” Wait a minute. Aren’t these the same messages we heard 18 years ago when Road Runner first launched? “Focus on the resident,” “Build your support model around the on-site staff” and “Customize for me.” Though products go through constant evolution – analog to digital, dial-up to gigabit – the market hasn’t changed at all. The message from the MDU leaders makes it clear. The apartment market still operates on the same principles it did in the mid-1990s: Location matters. Curb appeal is important. Amenities add value. Yes, technology has changed the way owners run their businesses, but success is still driven by strong leasing staff, talented maintenance folks, disciplined managers and relationships with key vendors. PCOs should recognize that although their world has changed, their ability to succeed in the MDU world has not. The same principles still apply: Take care of each user. Manage the manager. Customize the program. This is no evolution at all. Remember that in all those cartoon episodes, Wile E. Coyote never caught the Road Runner. It was a race he couldn’t win. PCOs should focus on a race they can win by staying true to the core principles of the MDU market, which continue to be the same as they were many years ago. v Bryan Rader is CEO of Bandwidth Consulting LLC, which assists providers in the multifamily market. You can reach Bryan at [email protected] or at 636-536-0011. Learn more at www.bandwidthconsultingllc.com. Did you 2014 like this article? Subscribe here! 20 | BROADBAND COMMUNITIES | www.broadbandcommunities.com | NOVEMBER/DECEMBER FTTH DEPLOYMENT Q&A With Stephen Lane, InteliPort Backhaul from a BTOP-funded middle-mile network and the clever use of FTTH technology make it possible to deliver ultra-high-speed broadband to small cities in North Carolina. I nteliPort is a North Carolina ISP that is now building out fiber to the home in several communities, thanks to a middlemile network funded by the BTOP program. Recently, Broadband Communities had the opportunity to talk with Stephen Lane, president of the company. Following are highlights of that conversation. Broadband Communities: How did you decide to deploy fiber to the home? Stephen Lane: We’ve been in business since 1997 and are one of the few local Internet service providers still functioning in the black. Customer service is very important for us, and we’ve learned from our mistakes. We first looked at FTTH in the mid-2000s, but we couldn’t wrap our budgets around it. However, we knew we had to start doing something besides wireless. We’re using unlicensed wireless spectrum, and it doesn’t scale very well. In North Carolina, it’s difficult to penetrate many locations. There’s less and less spectrum and more and more devices. It’s a very crowded space. So we looked at hybrid systems, we looked at everything and then finally we realized, “We can do this.” BBC: What changed the economics of fiber for you? SL: Originally, we didn’t have enough money to build to a location where we could get cheap enough backhaul. We started working with MCNC early on but never could put Stephen Lane runs a quality-control test on a Genexis ONT. anything together till their BTOP project. [MCNC builds and operates the North Carolina Research and Education Network, which was vastly expanded as a result of $144 million in grants from the BTOP program and the Golden LEAF Rural Broadband Initiative.] After that, we acquired 500 miles of fiber from them through indefeasible rights of use. MCNC has been very supportive to 22 | BROADBAND COMMUNITIES | www.broadbandcommunities.com | NOVEMBER/DECEMBER 2014 us and to other last-mile providers, trying to facilitate our builds. We picked areas along the route we started with, from Elizabeth City to Rocky Mount, and designated six cities, with a modest goal of 1,250 active subscribers by the end of the year. We started laying fiber in the ground in October 2013 and finished Rocky Mount in April and Elizabeth City in May. We’ve started marketing door to door – door hangers, block parties, social media – and we’re getting good press. We installed free Wi-Fi in Elizabeth City; the equipment was paid for by donations, and we donated the management and bandwidth for one year. People can get Wi-Fi for free, but they still want to pay for fiber! Our goal is to build gigabit towns and cities throughout North Carolina. We have to thank Google for that – they put the “gigabit” into the consciousness of the country. BBC: Are you following the same plan as Google? Are you using fiberhoods, for example? SL: Our business plans are similar in nature, but there are some differences. We want to serve businesses as well as residential users. We need 35 percent of premises (residential, business or multiple-dwelling-unit) to preregister in each area, or we will not build. We have to be very careful about growth and failure. We know that if you grow too fast and can’t handle it, you’ll fall down. So we took a number we could selffinance and do at a very reasonable pace, where we could design, build, install and turn up fiber in a meticulous manner and have enough cash coming in that would allow us to bring people in and rent or purchase equipment. Along the way, we found investors with deep pockets who were willing to finance the business going forward. We are asking for preregistration in the same way Google is. The money is refundable or applied to the first bill. That $10 is symbolic. People are saying, “We really do want it; here’s money.” In one area with an older population, a gated community, there were holdouts who didn’t want to risk putting their credit card numbers online. We worked something out for them. BBC: Google originally thought it would just offer Internet access but ended up offering video as well. Are you doing that, too? SL: No, we’re not. We looked at partnering with others for video and realized there’s not enough meat on the bone. Data services offer the best revenue stream with the most profit. I believe the industry is changing drastically – cable companies will start selling à la carte programming, and [content owners] will start selling directly to consumers. So if we ever do video, we’d do it from a local standpoint, offering local channels. For other programming, we’d teach people about over-the-top boxes and which ones to use and work out deals with entertainment companies. BBC: What kinds of data speeds are you offering? SL: We got started small – we’re offering gigabit connections only within the local network, so people can telecommute via VLAN at gigabit speed. For Internet access, we’re offering 60 Mbps upstream and downstream for residential service and 80 Mbps upstream and downstream for business service. There are no data caps or contracts. We’re planning to test gigabit access for $119 per month, but we have to be careful not to oversell it. I don’t know if we can provide gigabit access across the board at this point. The fact that we have to go directly to [the Internet gateway node in] Raleigh drives up the cost for us – we can’t get an Internet connection from MCNC because we aren’t a not-for-profit, even though we can lease their fiber. But if we can scale up further, more backhaul options will become available. NOVEMBER/DECEMBER 2014 | www.broadbandcommunities.com | BROADBAND COMMUNITIES | 23 FTTH DEPLOYMENT When you give customers what they want, they will stay with you. BBC: Why did you choose an active Ethernet architecture? SL: We didn’t want to be married to a manufacturer. If we had millions invested in PON and we wanted to retool, it would cost a lot. In addition, active Ethernet gives people true connectivity. We wanted to offer symmetrical speeds, to unleash speed to users. BBC: One unusual equipment choice was the Genexis modular optical network terminal for the customer premises. This device, which has separate, snap-on layers for fiber termination, network termination and residential gateway, is better known in Europe than in the United States. How did you find out about it? SL: We were being frugal and smart and looking for technology all over the world. That’s how we kept our equipment and installation costs down. We were following the progress of the B4RN project in the UK – it’s a very grass-roots project [in which customers do much of the fiber installation work], and we were wondering if the American public would hook onto this concept. We realized very quickly we were not going to be able to do that, but we got interested in the equipment they were using. We found a picture of their ONT, did a Google image search on it and found a video showing how the Titanium residential gateway product worked. We were intrigued by the modular approach, so we got samples from Bruce Hudson at Genexis and put them through our lab. We were doing things that surprised even the Genexis engineers, so they made some modifications for us, and we worked out a price point. For example, we customized the product by putting a bridging adapter with the routing unit so customers could add their own equipment to the home network, and Genexis made software changes that allowed us to do that. The device has multiple options – we’re looking at WDM-PON for the future, and we may be able to use Genexis for that. [Genexis currently does not support WDMPON but says it can easily add such support to accommodate future demand.] It supports shaping on the ONT so we could give customers a gigabit on the network and 60 Mbps on the Internet. As soon as a unit comes online, it can be automatically provisioned within seconds – we liked that part of it. We tested it against multiple user devices, and for traditional packet sizes, we got a standard 92 percent [of headline speeds]; when we changed to jumbo frames, we got 98 to 99 percent upstream and downstream. The support is superb. We ripped the product apart, and it came through with flying colors. And it’s a very sexy product. It looks nice, it does what it’s supposed to do and it looks as though it belongs. Overall, this was the best device at the lowest price point and the easiest to install. BBC: How easy is it to install? SL: The first time I tried it, it took two hours, not because of the equipment but because of me. So we built walls that duplicated what an install looks like at a house, and eventually we were able to install the product in less than 30 minutes. Now we have a two-step process. First, a drop crew connects a house to the splice point, and their job is to install a box on the outside of the house – just an enclosure. We didn’t want to spend money on enclosures, but having the demarcation point on the outside is the best way. It might cost more, but you don’t have to make an appointment to install it. The next scheduled date is the “blue shoes” visit – an installer goes into the house, drills through the wall and sets up the box on the inside, already provisioned. The fiber management piece goes into the wall, the network termination piece goes on top of that and the Wi-Fi piece goes on top of that. BBC: Who owns the equipment inside the house? SL: Our customers pay for that equipment as an up-front charge. If we had to purchase the customerpremises equipment, we would need a contract with the customer, and we didn’t want to do that, except for a few large businesses that need service-level agreements. This way, we don’t need to collect information about customers, and we don’t have to have a collections department. With a contract, if a customer doesn’t pay, we may not collect even if we win in court. Without a contract, we maintain a solid relationship and just turn the service on or off. We bill at midnight on the day it’s due, and if the payment doesn’t go through, the card tries to bill again, and if that doesn’t work, the systems are automatically cut off. Surprisingly, there’s been no pushback at all on paying for customer-premises equipment. Some customers are a little taken aback that there are no bundles and no promotional deals, but I’d rather create a customer loyalty program – on your first-year anniversary, I want to give you something of value, such as increased speed or antivirus monitoring. It’s actually a simple concept: Just reward customers for their loyalty. I don’t want to follow big companies’ business plans because they’re really one-sided. I’d rather think more like Google: When you give customers what they want, they will stay with you. v Did you 2014 like this article? Subscribe here! 24 | BROADBAND COMMUNITIES | www.broadbandcommunities.com | NOVEMBER/DECEMBER Pavlov Media’s fiber services... We’ll take you to Gigabit (1,000Mbps) speeds #1 Internet is the number one apartment amenity.* Provide the best and residents reward you with renewals. *March 2, 2012 J Turner survey Build your brand as a provider of high-end communications services. Maximize popular video streaming with great connectivity. Snappy Internet makes residents happy. We take care of you with dedicated technicians and customer service representatives assigned to your network. 24 7 24/7 customer service and network monitoring. People love our fiber services with Tesseractiv® content We have years of experience designing, building and operating fiber optic networks for apartment communities. If you own a fiber optic network and would like a partner to specialize in MDU services, come see us at the Summit. Call 800.677.6812 Email sales@ pavlovmedia.com Visit pavlovmedia.com TM Simply Exceptional Connections FTTH DEPLOYMENT Bolt Lights a Spark in Oklahoma A rural electric cooperative in Northeast Oklahoma gets ready to launch gigabit services. By Masha Zager / Broadband Communities I n many rural areas where incumbent operators have not built broadband networks, electric cooperatives are rising to the challenge. Co-ops, which are memberowned and whose mission is to support their communities, view the need for broadband with some urgency: Local businesses can’t thrive without broadband, and when businesses fail or relocate, the co-ops lose their biggest electric customers. Many co-ops began by building wireless networks – the simplest, lowest-cost alternative for a company without existing telecom plant – but in the last few years, more than a dozen have decided that fiber broadband is needed to keep their service areas economically competitive. One of these is the Northeast Oklahoma Electric Cooperative, which serves 30,000 members in rural communities, tribal areas and a lake resort area. The cooperative had some experience with fiber broadband already. Two decades ago, it launched a technology subsidiary, RECtec, which has connected school buildings, libraries and enterprise customers. So when members, fed up with satellite and slow wireless Internet, began pressing the co-op to provide broadband to homes and small businesses – annual member surveys consistently show broadband as the top need – the cooperative was ready to listen. Finding a way to deliver broadband took some time, however. The cooperative examined and rejected several possible solutions, among them WiMAX (unreliable because of the terrain and foliage) and fiber to the home (too expensive because of the low population density). However, as prices for FTTH equipment fell and members’ pleas for broadband grew more urgent, the cooperative decided to take another look at fiber and try to develop a business case for it. Eventually, when it had a business case that made sense, it formed a new subsidiary, Bolt Fiber Optic Services, and applied for a Rural Utilities Service loan. Forming a subsidiary was critical to the business case, says Alex Mercado, Bolt Fiber Optics’ operations supervisor. He explains, “Most boards want to make sure the co-op won’t have to suffer on the electric side.” Though there are synergies between the electricity and telecom divisions, their finances are kept separate to mitigate risk: Bolt attaches fiber to the co-op’s utility poles but pays pole attachment fees; the co-op will use Bolt’s fiber network (Bolt will put Internet points of presence at the substations) but will pay Bolt for transport. In addition, some cooperative employees are working on the network build, but Bolt reimburses the co-op for their time. A SHARED HEADEND Making the business case required several other strategic decisions. Perhaps most significant was the decision to build a video headend. “We went back and forth for about a year,” says Sheila Allgood, Bolt’s manager. “Over-the-top video is coming on the horizon, but we live in an area where people still like to have channels. … We felt that, [by offering] video, we would increase the take rate enough to pay for it.” A member survey clinched the deal; members indicated they were very interested in buying TV services from Bolt, and that convinced Bolt (and the 26 | BROADBAND COMMUNITIES | www.broadbandcommunities.com | NOVEMBER/DECEMBER 2014 Bolt Fiber Optic Service’s new data center will offer data backup and colocation to businesses. RUS) that a headend would be a good investment. However, video headends are expensive, and programming is even more expensive, even with help from the National Cable Television Cooperative, which negotiates programming contracts on behalf of its nearly 1,000 members. To reduce the risks inherent in video service, Bolt decided to lease headend services to other providers once the system was working smoothly. “There are probably four municipals and co-ops that are very interested in sharing the headend with us,” Allgood says. “We’re working on a business case for a client in Kansas right now.” Sharing the headend is possible because of the technology that Bolt selected – most importantly the IPTV middleware, Ericsson Mediaroom. Bolt chose Alcatel-Lucent as its integrator and FTTH equipment vendor in large part because the company had extensive experience deploying Mediaroom. Alcatel-Lucent is providing its GPON solution (7360 Intelligent Services Access Manager and 5520 Access Management System) as well as its Triple Play Express and Video Systems Integration solutions. As integrator, it is providing architecture, design, engineering and installation services and coordinating third-party solutions such as Mediaroom. Alcatel, in turn, recommended that Bolt use ETI Software Solutions’ Overture Software Suite as its B/OSS solution because ETI provides an advanced Mediaroom applications set that includes remote DVR management, on-screen caller ID, visual voicemail and more. In addition, ETI had experience setting up Mediaroom in a shared headend. Allgood explains, “All of our subscriber data will be kept separate and secure, but we will be able to share technology with our neighbors to quickly and easily provide services to residents of underserved communities.” Bolt also uses Overture for fiber design and management, GIS monitoring of alarms, customer care, provisioning and end-to-end billing for all services. According to Frank Gine, ETI’s president, the advantage of integrating fiber management and design modules with GIS and customer care is that information about outside plant becomes readily available to the network operations center (NOC) and customer care representatives. When the NOC receives an automated alarm or the customer contact center receives a call about an outage, the responder has full information about the outside plant that may be affected and knows whom, if anyone, to dispatch for the repair. Most operators silo their outside-plant information, Gine says, but when this information can be integrated with other systems, “it becomes a living, breathing entity.” All Overture modules update the database in real time, Gine adds. When a customer requests service, a customer service rep can provision the optical network terminal (ONT) instantly and start delivering the service – and billing for it – immediately. Provisioning the ONT automatically updates the GIS map, and the NOC will receive alarms if anything is wrong with the ONT. “The system stays on the pulse of what’s happening every second,” Gine says. PRIORITIZING BY DENSITY Another strategic decision was to prioritize the project by population density. The fiber build will take three years to complete, and the first phase, which is in the lake resort area, is nearly finished. The phase-one area has about NOVEMBER/DECEMBER 2014 | www.broadbandcommunities.com | BROADBAND COMMUNITIES | 27 FTTH DEPLOYMENT “The reason we’re doing the whole project is for the people in phase three, but the only way to get there is to do the first two phases.” 15 homes per mile, the phase-two area about eight homes per mile and the phase-three area two to four homes per mile. Staging them in this order allows the co-op to start collecting revenue as quickly as possible and thus minimize its debt. Says Allgood, “The reason we’re doing the whole project is for the people in phase three, but the only way to get there is to do the first two phases.” COMMUNITY SUPPORT Excitement is mounting as residents wait for Bolt’s triple-play services to be turned up. The base speed for Internet service, 20 Mbps, will be considerably higher than what most residents can currently access, and speeds up to a gigabit will be available to all residents. More than 1,200 households preregistered even before pricing was announced, and the phase-one area already has a 70 percent take rate. “Whole homeowners associations are coming in,” Allgood says. “Banks put up signs thanking us. We’ve had support from communities, chambers of commerce, colleges – it’s been pretty remarkable.” Residents are already getting organized to use the network for economic development. Communities are collaborating to draw new manufacturers into the area, and a committee made up of realtors, bankers and others is identifying other employers that the network might attract. Bolt will contribute to economic development by offering data backup and colocation in a new, secure data center that is rated to withstand an F5 tornado and has multiple redundant AC and DC power systems. “Seventy-five years ago, rural America didn’t have electricity, and the only way they got it was by communities bonding together,” says Allgood. “This is no different. We feel it is absolutely part of our responsibility as a rural cooperative to take care of our members’ needs, just as we did 75 years ago.” v Masha Zager is the editor of Broadband Communities. You can reach her at [email protected]. Planning Your Gigabit Network? Prove your business case with real-time customer demand Take the guesswork out of your fiber deployment Service Zones™ Delivering successful network deployments © 2014 COS Systems 617.274.8171 | www.cossystems.com/service-zones Did you 2014 like this article? Subscribe here! 28 | BROADBAND COMMUNITIES | www.broadbandcommunities.com | NOVEMBER/DECEMBER GIVE YOUR RESIDENTS THE RIGHT CONNECTIONS. Residents expect the latest entertainment and communication technology in their lives. Cox owns, maintains and monitors one of the nation’s largest hybrid fiber-optic networks, providing the bandwidth options needed to support advanced technology and connectivity. As a Cox Digital Community, you can provide innovative services like Contour,SM a personalized TV experience that adapts to individual viewers. And you always get local support whenever you need it. Make sure your residents are connected to the services they want, today and in the future. ©2014 Cox Communications, Inc. All rights reserved. Let’s Talk! Shawn Geagan Director MDU Sales [email protected] 404-269-3979 2015 BUYERS GUIDE Buying for Ultra-Broadband Builds and Services Where to buy equipment, software and services for delivering voice, video, data and more I f you are looking for help coordinating a complex network project, differentiating a multifamily property, delivering broadband to unserved or underserved communities, upgrading existing networks with state-of-theart equipment, meeting customers’ insatiable demand for bandwidth or attracting new businesses to your community, this is the place to start. The products and services described here make deploying networks and services faster, easier and less expensive than ever before. These vendors can help you plan and execute your project. The 2015 Buyers Guide is for • Property owners and developers • Telecommunications service providers of all kinds • Municipal officials and advisors • Contractors, consultants, integrators and installers • Banks and other capital sources. 3-GIS 390 Market Street, Suite C Decatur, AL 35601 P: 256-560-0744 F: 256-560-0746 W: www.3-gis.com Contact: Dustin Sutton E: [email protected] based suite, the 3-GIS Network Solutions. Allowing users to easily plan, design and manage their networks, these solutions are focused on empowering customers to construct fiber networks quickly by utilizing tools designed to increase efficiency from office to field. The 3-GIS documentation process also helps streamline network operations by providing the ability to view assigned fiber and fiber availability and to automate new service paths. 3-GIS Network Solutions offer innovations for FTTH, such as automated planning, QA/QC and work packet generation tools. Leveraging GIS allows this suite to manage complex connective networks and provide analytics allowing for signal path tracing, OTDR tracing and automated design. Customers: Telcos Products/Services: Software 3-GIS provides telecommunications companies with a smart, simple, fast and affordable GIS- In the index table, featured suppliers are in boldface. Staff members participating in the production of this section included Irene Prescott and Dennise Argil. 30 | BROADBAND COMMUNITIES | www.broadbandcommunities.com | NOVEMBER/DECEMBER 2014 Customer-Premises Equipment Training Video Headends Design/ Egineering/ Construction Optical Fiber and Cable Software Wireline Broadband Equipment Test Equipment In-Home Cabling and Networking Wireless Broadband Equipment Inside Plant Outside Plant PRODUCTS AND SERVICES Voice/Video/Internet Services Municipalities Hospitality Cable TV Telcos COMPANY MDU/PCO BUYERS GUIDE CUSTOMERS 3-GIS 3 3 Advanced Media Technologies (AMT) 3 3 3 3 3 3 3 3 3 3 3 3 AFL 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 ATX Networks 3 3 3 3 3 3 3 3 3 3 3 BEC Technologies 3 3 3 3 3 Calix 3 3 3 3 3 3 3 3 Clearfield 3 3 3 3 3 3 3 3 3 Comcast 3 3 Corning Optical Communications 3 3 3 3 3 3 3 3 3 3 3 COS Systems 3 3 3 3 3 Cox Communications 3 3 Crownduit 3 3 3 3 3 3 3 DASAN Networks USA 3 3 3 3 3 3 3 3 Display Systems International 3 3 3 3 3 3 DrayTek 3 3 3 3 3 Fujitsu Network Communications 3 3 3 3 3 3 3 3 3 GLDS 3 3 3 3 3 3 GMP MaxCell 3 3 3 3 3 National Information Solutions Cooperative (NISC) 3 3 3 OFS 3 3 3 3 3 3 Pace International 3 3 3 3 3 3 3 3 3 Pavlov Media 3 3 3 Power & Tel 3 3 3 3 3 3 3 3 3 3 3 Preformed Line Products 3 3 3 3 3 3 Spot On Networks 3 3 3 3 3 3 ViewTEQ 3 3 3 3 3 3 3 3 Built on the Esri ArcGIS Server platform, 3-GIS Network Solutions are designed and licensed with flexibility to meet the requirements of large to small customers and can be deployed via an on-premises or cloud offering. Advanced Media Technologies 3150 SW 15th Street Deerfield Beach, FL 33442 P: 954-427-5711 F: 954-427-9688 W: www.amt.com Contact: Rob Narzisi E: [email protected] Customers: MDU/PCO, Telcos, Cable TV, Hospitality, Municipalities Products/Services: Outside Plant, Inside Plant, Test Equipment, Wireless Broadband Equipment, Wireline Broadband Equipment, Video Headends, CustomerPremises Equipment Advanced Media Technologies (AMT) is a value-added reseller of high-performance broadband products specializing in data over DOCSIS solutions. AMT offers end-to-end data services, NOVEMBER/DECEMBER 2014 | www.broadbandcommunities.com | BROADBAND COMMUNITIES | 31 2015 BUYERS GUIDE including expert design and engineering of data systems; equipment purchase, installation and configuration of CMTS; RF network testing and validation for distribution systems; purchase and provisioning of cable modems and routers; and ongoing technical support for installation and subscribers. AMT also offers a complete line of FTTH, IPTV and CATV products from leading manufacturers such as Adtec, Amino, ARRIS, ATX Networks, Blonder Tongue, Casa, Drake, EGT, Emcore, Olson Technology, Pacific Broadband Networks, RGB Networks and ZeeVee. AMT has unmatched inventory of stocked items, including CMTS, digital and analog headend products, digital encoders, line gear, cable modems and gateways, and digital QAM and IP set-tops. Located in Deerfield Beach, Fla., AMT is a subsidiary of ITOCHU International, the North American subsidiary of ITOCHU Corporation of Japan. and houses up to 288 fibers while maintaining flexible form, thus optimizing space. AFL 170 Ridgeview Center Drive Duncan, SC 29334 P: 864-433-0333 F: 864-486-7310 W: www.aflglobal.com Contact: Corie Culp E: [email protected] ATX Networks designs, manufactures, markets and delivers a broad range of products to the global cable television industry. Other market verticals served include government, broadcast, hospitality, health care, education, enterprise, private cable and telcos. ATX Networks is a global manufacturer of digital video solutions, including transcoding, multichannel and PEG encoding, content streaming solutions, bulk video transition/ gateways, RF management, RF filters, transmitters/receivers, headend and MDU amplifiers, node segmentation, node/amp upgrades, monitor/control equipment, pads/EQs, drop amps, digital voice switches and connectors. Customers: MDU/PCO, Telcos, Cable TV, Hospitality, Municipalities Products/Services: Outside Plant, Inside Plant, Wireless Broadband Equipment, Test Equipment, Wireline Broadband Equipment, Software, Optical Fiber and Cable, Design/Engineering/Construction, Video Headends, Training, Customer-Premises Equipment AFL provides industry-leading products and services to the communications, broadband, enterprise and other markets. Our diverse product portfolio includes fiber optic cable, outside-plant equipment, connectors, fusion splicers, test equipment and training. AFL provides PON and point-topoint electronics through a systems integration approach for FTTx applications, offering a “last mile” strategy. AFL’s service portfolio includes leading positions with telecommunications companies supporting both inside and outside plant. We provide engineering/program management, material acquisition/manufacturing integration, installation services, test, turn-up and maintenance. AFL’s newest products include OSP MicroCore, a 432-fiber, air-jetted cable with a 12.6 mm outer diameter, one of the world’s smallest high-fiber-count fiber optic cables with a stranded core; and Sub-Unitized Premise MicroCore 3.0, a cable that is ideal for highperformance applications ATX Networks 1-501 Clements Rd. W Ajax/ ON/ L1S 7H4 Canada P: 814-502-5409 F: 905-427-1964 W: www.atxnetworks.com Contact: Tim Buck E: [email protected] Customers: MDU/PCO, Telcos, Cable TV, Hospitality, Municipalities Products/Services: Outside Plant, Inside Plant, Wireline Broadband Equipment, Software, Video Headends, Customer-Premises Equipment BEC Technologies 1500 Precision Dr., Suite 100 Plano, TX 75074 P: 972-422-0877 F: 972-422-0886 W: www.bectechnologies.net Contact: Janel Wilkiewitz E: [email protected] Customers: Telcos, Municipalities Products/Services: Wireless Broadband Equipment, Wireline Broadband Equipment, Customer-Premises Equipment BEC Technologies Inc., founded in 2004 as the North American subsidiary of the 40-year old industry pioneer Billion Electric Co., is a leading provider of advanced broadband customer-premises equipment (CPE) solutions focused on next-generation wired and wireless IP services. BEC develops and markets an extensive portfolio of broadband CPEs, integrating 3G, 4G/LTE, xDSL, VoIP, PON, active Ethernet, HomePlug AV, HPNA, Wi-Fi, centralized management systems, rugged industrial Ethernet and smart-grid technologies. BEC is committed to providing innovative solutions and continuously improving capabilities and quality and exceeding the expectations of customers and their subscribers. For more information, please visit our websites at www.bectechnologies.net and www.billion.com. 32 | BROADBAND COMMUNITIES | www.broadbandcommunities.com | NOVEMBER/DECEMBER 2014 Calix 1035 N. McDowell Blvd. Petaluma, CA 94954 P: 707-766-3000 F: 707-283-3100 W: www.calix.com Customers: Telcos, Cable TV, Municipalities Products/Services: Outside Plant, Inside Plant, Wired Broadband Equipment, Software, Customer-Premises Equipment Calix is a global leader in access innovation and North America’s leading provider of fiber access systems and software. Our customers leverage our fiber access expertise to become the broadband service providers of choice to subscribers. Visit www.calix.com for more information. Clearfield 7050 Winnetka Ave. N. Minneapolis, MN 55428 P: 800-422-2537 F: 763-475-8457 W: www.clearfieldconnection.com Contact: Johnny Hill E: [email protected] Customers: MDU/PCO, Telcos, Cable TV, Municipalities, Wireless Providers, DAS, Government Products/Services: Outside Plant, Inside Plant, Wireless Broadband Equipment, Optical Fiber and Cable, Customer-Premises Equipment When it comes to distribution, consolidation, management and protection of fiber, nothing comes close to Clearfield’s streamlined, practical approach. Designed for scalable deployment, craft-friendly operation and unsurpassed performance, Clearfield’s line of panels, frames and cabinets, optical components and full range of fiber optic assemblies and patch cords is designed with the simplicity that delivers lowest total cost of ownership. Ask us about FieldShield “pushable” fiber – a Clearfield technology that delivers a simple, fast fiber pathway through all points of the network with limited labor and optimal restorability. With the flexibility to deploy the product platform in the entire range of applications, Clearfield is your fiber connectivity specialist. Clearfield is the only fiber assembly provider to offer the FiberDeep guarantee – a performance threshold of .2dB insertion loss. NASDAQ: CLFD Comcast 1701 John F. Kennedy Blvd. Philadelphia, PA 19103 P: 215-866-8171 W: www.comcast.com/xfinitycommunities Contact: Mike Slovin, VP, XFINITY Communities E: [email protected] Customers: MDU/PCO Products/Services: Voice/Video/Internet Services XFINITY Communities works with building and property owners, developers, leasing agents and homeowners associations to provide residents an entertainment experience like no other. Every building houses a community. Becoming an XFINITY Community lets you give your residents access to an entertainment experience like no other with the best in TV, Internet, voice, home security – and the X1 Entertainment Operating System, the simplest, fastest, most complete way to access entertainment on any screen. Plus, as a leader in innovation and advanced technologies, we are proud to offer our new Advanced Communities Network – a fiber network solution that can help attract new residents while giving existing residents what they are looking for. Corning Optical Communications 800 17th Street NW Hickory, NC 28601 P: 828-901-5000 W: www.corning.com/opcomm REGISTER NOW The Leading Conference on Broadband Technologies and Services Register Early to Receive Major Discounts Special Reduced Rates Now in Effect To Exhibit or Sponsor contact: Irene G. Prescott [email protected] | 505-867-3299 877-588-1649 | www.bbcmag.com NOVEMBER/DECEMBER 2014 | www.broadbandcommunities.com | BROADBAND COMMUNITIES | 33 2015 BUYERS GUIDE Customers: MDU/PCO, Telcos, Cable TV, Municipalities Products/Services: Outside Plant, Wireless Broadband Equipment, Test Equipment, Design/Engineering/ Construction, Video Headends, Training, CustomerPremises Equipment Corning Optical Communications, part of the Corning Incorporated telecommunications segment, is a leading manufacturer of fiber optic communications system solutions for voice, data and video network applications worldwide. We offer the broadest range of end-to-end fiber optic and copper product solutions for telecommunications networks. We put companies at the forefront of network innovation, pioneering many of the global products and solutions commonly used in state-of-the-art cabling systems. Corning Optical Communications develops and manufactures fiber optic cable, fiber optic and copper cable hardware and equipment, including frames, cabinets, terminals, network interface devices, splice and test equipment, cable assemblies and fiber optic and copper connectors. In addition, it provides network services worldwide. Our commitment to total quality and superior customer satisfaction distinguishes us as a leader in the telecommunications industry. COS Systems 16 Coddington Wharf #2 Newport, RI 02840 P: 617-274-8171 W: w ww.cossystems.com, www.servicezones.net Contact: Ron Corriveau, General Manager E: [email protected] Customers: MDU/PCO, Telcos, Municipalities Products/Services: Software, Design/Engineering/ Construction COS Systems offers a powerful set of tools to plan, deliver and manage modern FTTH networks. COS Service Zones delivers current market insight critical to business decisions about when where to offer services, and which services to offer, for a successful FTTH deployment. It identifies and aggregates demand and cost-of-service information, making it easy to identify and rank the best business cases, zone by zone, in a planned service area. Backed by a powerful workflow engine and detailed reports to document the business case, service providers and network planners can confidently deliver up-to-date reports to key stakeholders in FTTH projects and make important deployment decisions based on customer commitments and deployment cost data. Obtaining customer commitments before making construction plans eliminates the risk of building costly underutilized networks and enables a cost-effective, incremental buildout strategy. The innovative COS Business Engine BSS solution delivers a proven management framework and an easy to use self-service marketplace that enables fiber network owners and operators to easily offer services in a variety of categories from multiple providers. It makes it easy to market promotional offerings to highly targeted customers and prospects while simplifying the process and reducing the cost of adding new services on networks that support lots of services from multiple providers. These products are easily and quickly deployed in customer networks using Microsoft’s Azure cloud platform, delivering rapid deployment options and a scalable platform to grow your network reliably. To find out more, please visit us at www.servicezones.net and www.cossystems.com. Cox Communications 1400 Lake Hearn Dr. Atlanta, GA 30319 P: 404-269-3979 W: www.cox.com Contact: Shawn Geagan, MDU Sales Director E: [email protected] Customers: MDU/PCO Products/Services: Voice/Video/Internet Services Cox is focused on helping customers discover and connect to the things they care about in ways that are easy to use and reliable. You told us what your residents wanted, and we listened! Fast, reliable Internet service and a unique TV experience are important to your residents, so we are increasing Internet speeds again in 2014. Cox’s Contour TV can deliver a personalized experience for all your residents, and with Cox High Speed Internet, residents can enjoy streaming TV on their wireless devices. Our team of multifamily specialists works with owners, developers and management companies to come up with solutions to bring the magic to your properties. Crownduit 214 William Street Red Bank, NJ 07701 P: 732-212-0220 W: www.crownduit.com Contact: Bob DePaul E: [email protected] ® Customers: MDU/PCO, Telcos, Cable TV, Hospitality, Municipalities Products/Services: Inside Plant, Design/Engineering/ Construction Crownduit is a patented, service access, removable real crown molding made from MDF that serves as an aesthetically pleasing way to route, protect and conceal fiber optic, home theater, audio, video and security hardwire cabling. 34 | BROADBAND COMMUNITIES | www.broadbandcommunities.com | NOVEMBER/DECEMBER 2014 Crownduit was developed as a wire raceway that incorporates an architectural feature into spaces while providing a wire chase for future upgrades and additions for wired devices. Removable wire raceways are usually made from plastic. Building owners and condo associations often object to them for aesthetic reasons. A hard-wired connection is faster, safer, and more secure than wireless. It allows for streaming videos, photo sharing, videoconferencing and downloading large file transfers. Crownduit makes adding and relocating wired and wireless devices faster, cleaner and easier than gluing fiber or stapling cables along the baseboards, doors and crown moldings. Crownduit allows this to be done with one single drop to your desired locations. DASAN Networks USA 5000 Research Court, Suite 700 Suwanee, GA 30024 P: 770-674-0302 F: 888-253-7054 W: www.dasannetworksus.com Contact: Scott Kim E: [email protected] Customers: MDU/PCO, Telcos, Cable TV, Hospitality, Municipalities Products/Services: Video Headends Display Systems International is the third-largest provider of scrolling TV listings in North America. Every day our listings data and character generators help keep millions of viewers informed about cable programming and local events. DrayTek No. 26, Fushing Rd., Hukou Hsinchu Industrial Park Hsinchu, Taiwan 303 P: 886-3-5972727 Ext 622 F: 886-3-5972121 W: www.draytek.com Contact: Julia Su E: [email protected] Customers: Telcos, Cable TV, Hospitality, Small and Medium Businesses Products/Services: Wireless Broadband, Customer-Premises Equipment Customers: MDU/PCO, Telcos, Cable TV, Hospitality, Municipalities Products/Services: Wireless Broadband Equipment, InHome Cabling and Networking, Wireline Broadband Equipment DASAN Networks develops and markets access equipment, including FTTP (GPON, active Ethernet, 10G EPON), carrier and metro Ethernet, edge and aggregation Layer 2 and 3 switching, and triple-play solutions for residential and business applications, including MDUs. Based in Seoul, South Korea, with a local office in Suwanee, Ga., DASAN Networks offers technologies designed and built for carrier, enterprise, utilities, government, hospitality and mobile backhaul networks and applications. Dasan’s fiber-to-the-premises access infrastructure solutions have been deployed to more than 30 million subscribers. DASAN supplies to major service providers such as Korea Telecom, SK Telecom, SoftBank Broadband, BSNL and Chunghwa Telecom. U.S. customers include New Knoxville Telephone, Horry Telephone, Benton Ridge Telephone, US Sonet and Hometown Cable. Display Systems International 2214 Hanselman Avenue Saskatoon, Saskatchewan S7l6A4 , Canada P: 877-934-6884 F: 306-934-6447 Contact: Dale Lembe E: [email protected] W: displaysystemsintl.com VigorACS SI is a powerful, TR-069–based, centralized management system that lets system integrators manage DrayTek devices conveniently. With its user-friendly interface, it can help maintain the configuration of devices easily. As a value-added service provider, a system integrator can assist users in setting up VPN connections or VoIP services while keeping customer maintenance fees low by using real-time messaging from the VigorACS SI. The easy-to-understand logic management can help new IT staff get up to speed easily and start analyzing and serving customers. VigorACS SI simplifies management tasks – for example, by providing a VPN Wizard that requires less technical expertise than setting up the complex parameters of IPsec or PPTP. Through self-hosted or cloud-based subscriptions, DrayTek Vigor routers can be managed for firmware upgrades, VPN establishment, real-time monitoring and obtaining proper customer care. NOVEMBER/DECEMBER 2014 | www.broadbandcommunities.com | BROADBAND COMMUNITIES | 35 2015 BUYERS GUIDE Fujitsu Network Communications 2801 Telecom Parkway Richardson, TX 75082 P: 888-362-7763 F: 972-479-6941 W: http://us.fujitsu.com/telecom Contact: Aubree Lambright E: [email protected] field-based workforce management, as well as telephone and Web-based customer self-care. Customers: Telcos, Cable TV, Hospitality, Municipalities, Utilities, Federal and State Governments, Health Care, Research, Education, Transportation Products/Services: Wireless Broadband Equipment, Wireline Broadband Equipment, Design/Engineering/ Construction, Training, Customer-Premises Equipment Serving small and mid-sized operators, GLDS has implemented its solutions for more than 400 broadband operators in 49 states and 44 countries worldwide. For more information, contact GLDS Sales at 800.882.7950 or visit www.glds.com. Fujitsu Network Communications Inc. has built reliable, costeffective communications networks for more than 35 years. We bring the power of information and communications technology to state and local governments, utilities, enterprises and service providers. Our expertise touches the lives of millions and opens doors to economic growth and progress. Customers consider Fujitsu a trusted partner as they expand, modernize or build new fiber networks. We specialize in end-to-end, fully integrated solutions for core and fiber-tothe-home access networks. As an industry-leading network integrator, we’ll work in step with you or alongside the consultant you’ve engaged to develop, refine, implement and maintain the right multivendor broadband network for your community. We’re experts in sourcing best-of-breed equipment, managing complex deployments and providing a complete suite of professional services. As your broadband solution implementation partner, we can help you mitigate the challenges of complex deployments and minimize project risk. GMP 3111 Old Lincoln Hwy. Trevose, PA 19053 P: 215-357-5500 F: 215-357-6216 W: www.GMPtools.com Contact: Ted Clemens, Director of Sales E: [email protected] GLDS 5954 Priestly Dr. Carlsbad, CA 92008 P: 760-602-1900 F: 760-602-1928 W: www.glds.com Contact: Tina Aiello E: [email protected] Customers: MDU/PCO, Telcos, Cable TV, Hospitality, Municipalities Products/Services: Software A Broadband Communities Top 100 Company, GLDS sets a new standard for broadband billing, customer management and provisioning. Stand-alone or cloud-based solutions, attractive Windows-based interface, and robust SQL database provide tier-one features without the tier-one price. FTTH, IPTV, digital and analog set-top boxes, conditional access satellite receivers, cable modems, VoD and VoIP can all be managed directly from the WinCable and BroadHub billing systems. GLDS also offers a mobile app for • Designed for anyone offering broadband or services over broadband. • Billing and provisioning support for FTTH, digital, IPTV, interdiction, VoIP and more. • Landlord/tenant billing options. • Low-cost stand-alone or cloud-based solutions. Customers: Construction contractors General Machine Products (GMP) is a world leader in the manufacturing of tools used to deploy fiber cable both aerially and underground. Tools offered include fiber blowing and pulling machines, aerial cable lashers, duct rodders, manhole access tools, cable cutters, line blowing equipment, and duct and cable slitters. GMP also offers repair and refurbishment services for all the equipment we manufacture. MaxCell 600 Plum Creek Drive Wadsworth, Ohio 44281 P: 888-387-3828 W: www.maxcell.us Contact: Mike Miller E: mmiller @maxcell.us Customers: Telcos, Cable TV, Municipalities, Government/ Military Products/Services: Outside Plant, Inside Plant MaxCell is the only flexible fabric innerduct system designed specifically for the network construction industry. The unique fabric construction allows MaxCell to conform to the shape of cables placed within, greatly reducing the wasted space associated with rigid innerduct. Network operators who use MaxCell can increase their cable density by as much as 300 percent. 36 | BROADBAND COMMUNITIES | www.broadbandcommunities.com | NOVEMBER/DECEMBER 2014 MaxSpace is a new, patent-pending, no-dig technology and construction method that safely removes existing innerduct from around active fiber optic cables with virtually no load on the cables and no interruption of service. As the innerducts are removed, cables migrate to bottom of the outer conduit. Once all innerducts are removed, up to 90 percent of conduit space is recovered, allowing up to nine more cables to be placed in the reclaimed space of a conduit that was once considered full. Visit www.maxcell.us for more information. National Information Solutions Cooperative (NISC) 3201 Nygren Drive NW Mandan, ND 58554 P: 866-999-6472 F: 701-667-1936 W: www.nisc.coop Contact: Todd Henecke E: [email protected] Customers: Telcos, Municipalities, Utilities Products/Services: Software NISC, a leading provider of information technology products and services, offers integrated software and hardware solutions to telecommunications companies, utilities, municipals and other infrastructure industries and businesses in 48 states, American Samoa, Palau and Canada. NISC provides advanced, integrated IT solutions for subscriber billing, accounting and business solutions, engineering and operations, mapping, carrier access billing, E-bill, end user billing, wireless billing, self-service websites, switch and CATV provisioning, customer apps and many other leadingedge IT solutions. NISC has facilities in Mandan, N.D.; Lake Saint Louis, Mo.; Cedar Rapids, Iowa; and Shawano, Wis., and employs more than 1,000 professionals. Additional information can be found at www.nisc.coop. OFS 2000 NE Expressway Norcross, GA 30071 P: 888-342-3743 W: www.ofsoptics.com Contact: OFS Global E: [email protected] Headquartered in Norcross (near Atlanta), Ga., OFS is a global provider with facilities in China, Denmark, Germany, Russia and the United States. OFS is part of Furukawa Electric Company, a multibillion-dollar leader in optical communications. Please visit www.ofsoptics.com. Pace International 3582 Technology Drive NW Rochester, MN 55901 P: 507-424-4900 W: www.paceintl.com Contact: Matt Caplin E: [email protected] Customers: MDU/PCO, Telcos, Hospitality Products/Services: Video, Outside Plant, Inside Plant, Test Equipment, Optical Fiber and Cable, Design/ Engineering/Construction, Video Headends Pace International is an industry-leading distributor of equipment for DBS, SMATV, PCOs, REITs, system operators, installers, dealers and retailers. Pace offers products from the industry’s most recognized manufacturers as well as privately labeled Tradewind products. Pavlov Media 206 North Randolph Street Champaign, IL 61820 P: 800-677-6812 W: www.pavlovmedia.com Contact: Chris Hunt E: [email protected] Customers: MDU/PCO Products/Services: Voice/Video/Internet Services, Design/ Engineering/ Construction Pavlov Media is headquartered in Champaign, Ill., and offers broadband and television services nationally. The $)XUXNDZD&RPSDQ\ Customers: MDU/PCO, Telcos, Municipalities Products/Services: Outside Plant, Optical Fiber and Cable, Design/Engineering/Construction OFS is a world-leading designer, manufacturer and provider of optical fiber, fiber optic cable, connectivity, fiber-to-thesubscriber (FTTx) and specialty photonics products. We provide reliable, cost-effective solutions for a broad range of applications, including telecommunications, medicine, industrial automation, sensing, government, aerospace and defense. These products help our customers meet the needs of consumers and businesses today and into the future. Left to right: Pavlov Media Purple Puppy; Dorothy Kallmayer, Regional Vice President of Sales; Mark Scifres, CEO NOVEMBER/DECEMBER 2014 | www.broadbandcommunities.com | BROADBAND COMMUNITIES | 37 2015 BUYERS GUIDE company provides fiber services on its national backbone network, delivering speeds up to ten Gbps. We specialize in private Internet Protocol networks designed, constructed and operated by a team of dedicated professionals from the multifamily real estate industry. We add value to properties and businesses by delivering IP products that enhance customer satisfaction and protect assets. For more information, visit www.pavlovmedia.com. Power & Tel 2673 Yale Ave. Memphis, TN 38112 P: 901-866-3300 F: 901-320-3485 W: www.ptsupply.com Contact: Melissa Seibring E: [email protected] Customers: Telcos, Cable TV, Municipalities Products/Services: Data Centers, Export Business, Home Networking, Network Electronics, Outside Plant, Power, Test Equipment, TV & Video, Wire & Cable, Material Management For building or maintaining a network, having the right material at the right time is critical to success. Power & Tel is a reliable source for the various products and technologies needed to provide broadband services. As a partner to the communications industry for more than half a century, Power & Tel also understands commitment to customers and the business factors that allow for long-term success in an everchanging marketplace. By utilizing Power &Tel’s expertise in moving and managing products within the supply chain, you can place even greater focus on serving your customers and meeting your profit objectives. Preformed Line Products 660 Beta Drive Mayfield Village, OH 44143 P: 440-461-5200 F: 440-442-8816 W: www.preformed.com Contact: Bill Upton E: [email protected] Customers: MDU/PCO, Telcos, Cable TV, Municipalities Products/Services: Outside Plant, Inside Plant Founded in 1947, Preformed Line Products (PLP) is an international designer and manufacturer of high-quality cable anchoring and control hardware systems, fiber optic and copper splice closures, high-speed cross-connect devices, fiber connectivity components, structured cabling solutions and photovoltaic system components and enclosures. Headquartered in Cleveland, Ohio, the company operates three domestic manufacturing centers, located in Rogers, Ark.; Albuquerque, N.M.; and Albemarle, N.C. PLP serves worldwide markets through international operations in Argentina, Australia, Brazil, Canada, China, England, France, Indonesia, Malaysia, Mexico, New Zealand, Poland, Russia, South Africa, Spain and Thailand. Spot On Networks 55 Church Street, Suite 200 New Haven, CT 06510 P: 203-523-5231 W: http://www.spotonnetworks.com Contact: Jessica DaSilva E: [email protected] Customers: MDU/PCO, Hospitality, Municipalities, Commercial Real Estate Products/Services: Voice/Video/Internet Services, Wireless Broadband Equipment, Wireline Broadband Equipment Spot On Networks (SON) is a wireless Internet service providing managed UserSafe WiFi and WiFi Calling networks to multitenant properties, assisted living, hotels and commercial spaces. Spot On Networks wireless infrastructure supports multiple wireless add-ons, such as CellBoost indoor cellular coverage, security, energy management and patient tracking. ViewTEQ 1020 NW 6th St., Suite A Deerfield Beach, FL 33442 P: 954-351-1121 F: 954-351-6977 W: www.viewteq.com Contact: Charles Mildenberger E: [email protected] Customers: MDU/PCO, Telcos, Cable TV, Hospitality Products/Services: Test Equipment, Active Electronics, Headend Equipment, RF Signal Management, CustomerPremises Equipment The ViewTEQ headend product line offers operators a variety of solutions for signal management, including IPTV options. The test equipment line provides field personnel with tools needed for verification of optical and RF signals. The drop security product line and other drop products provide networks with protection from unwarranted intrusion, theft of services and introduction of signal interference. v Did you 2014 like this article? Subscribe here! 38 | BROADBAND COMMUNITIES | www.broadbandcommunities.com | NOVEMBER/DECEMBER Contents Reliability... Bandwidth... Affordability... Future-Proofing... Symmetry... 3 8 9 11 12 WHY FIBER? Optical fiber is the basis of the world’s communications systems. Its limitless capacity can easily support today’s broadband services and those of the future. FIBER AND BANDWIDTH Driven by video, the demand for bandwidth continues to grow. Unlike copper, optical fiber carries high bandwidth over long distances – in both directions. FIBER: THE LIGHT FANTASTIC Fiber is superior to copper in many ways. It’s strong, resilient and impervious to lightning strikes. IS IT REALLY FIBER TO THE HOME? Not all “fiber networks” are FTTH! WHY WE’LL ALWAYS NEED MORE BANDWIDTH Bandwidth growth and innovation go hand in hand. New devices and applications are appearing every day. 14 SERVICES: BEYOND THE TRIPLE PLAY Providers can deliver more than just the “triple play” over fiber – including many high-margin services. 15 TELEHEALTH 17 EDUCATION GOES BROADBAND Security... Economic Development... Sustainability... New Broadband Content & Services... Higher Revenue... 18 FTTH FOR COMMUNITIES: QUESTIONS MUNICIPAL OFFICIALS ASK ABOUT FTTH A fiber network can stimulate business activity and improve quality of life. Municipalities can build their own networks or work with providers to do so. 21 GIGABIT TO THE HOME 22 MORE INFORMATION FOR COMMUNITY LEADERS AND SMALL NETWORK PROVIDERS Some 100 communities now boast gigabit service – and new applications will leverage this bandwidth. Resources for learning more about fiber to the home. 24 FTTH SUCCESS STORIES 26 BUILDERS, REAL ESTATE DEVELOPERS AND FTTH Fiber communities experience economic revitalization of many kinds. They may retain growing businesses, attract new companies or play host to tech startups. Surveys show FTTH adds value to all kinds of properties. 28 PROPERTY DEVELOPERS WIN WITH FIBER Two recent case studies show how fiber can make multifamily buildings more competitive. Broadband-enabled health care allows the chronically ill to live more independently. Students in fiber-connected schools have access to more information and new ways of learning. This primer was originally written by Steven S. Ross and updated by him and by Masha Zager, both of the BroadBand Communities staff. It summarizes research commissioned by the FTTH Council as well as independent reporting by the authors. 2 | What Fiber Broadband Can Do For Your Community | BROADBAND COMMUNITIES | www.bbcmag.com | FALL 2014 Why Fiber? 52% of FTTH customers are very satisfied with their service. branches hundreds of millions of miles in length and extended deep into most of the inhabited world. The final step is to build fiber optic cables all the way to homes and businesses and replace the old copper networks entirely. Yes, many individual premises now send and receive so much 36% of non-FTTH broadband customers are very satisfied with their service. data that their copper connections, built originally for telephone and analog cable TV, are struggling under its weight. Worldwide, network operators agree that only fiber to the home, Photo courtesy of Adena Health System W elcome to the Information Age – also known as the Fiber Optic Age. The information and communications revolution was brought to you by glass – very long, thin, pure strands of glass called optical fibers. So much data zips around the world today in commerce, education, entertainment and personal communication that copper wires and radio waves could carry only a fraction of it. Because fiber optic cable has so much capacity, it now forms the backbone of the Internet, cable TV networks, telephone (including cellular) networks, private business networks and even data center networks. Without fiber optic cable, none of these systems would work. Fiber optics was developed for communications in the 1960s. (The inventor received a Nobel Prize in 2009.) By the late 1980s, fiber optic cables were being strung across ocean floors. Then these fiber trunks grew < 1% of any cellular phone call actually travels through the air. > 98% of cellular calls are carried at least partially on fiber. One of the new services enabled by fiber networks is telemedicine, which can improve the health care available in smaller communities. FALL 2014 | www.bbcmag.com | BROADBAND COMMUNITIES | What Fiber Broadband Can Do For Your Community | 3 Why Fiber? 35-PLUS MILES is the distance a gigabit signal can travel over fiber to a home. or FTTH, can meet the exploding demand for bandwidth and deliver nextgeneration services. Everyone agrees that fiber will meet the world’s needs for the foreseeable future. The only debates involve the speed of the transition. The reason for this striking degree of unanimity is simple: FTTH offers far more bandwidth, reliability, flexibility, security and longer economic life than alternative technologies, even 300 FEET is the distance a gigabit signal can travel over copper to a home. though its price is comparable. On average, it is slightly more expensive to build, but it is far less expensive to operate and maintain than copper. Consumers who subscribe to FTTH rate it as the fastest, most reliable broadband technology. They appreciate that fiber networks can deliver broadband services for medicine, education, home-based businesses, home automation, video and games. 1 OF 5 U.S. households have access to fiber-to-thehome services. 196 FIBER STRANDS each thinner than a human hair, in a bundle not much thicker than a pencil, could carry all the world’s Internet traffic. Businesses are making a massive shift to cloud services. For economic efficiency and for redundancy, critical business systems now operate at huge data centers rather than on local computers. The speed, reliability and security of fiber connections make cloud services viable for consumers as well. In the United States, about one-fifth of households have fiber connections available, less than the rest of the developed world. This year, American broadband providers have finally begun to catch up. The target is moving, however. China alone expects to have 70 million FTTH subscribers by the end of 2015, with gigabit speeds available in some larger cities. 46% 1 OF 11 U.S. households subscribe to fiber to the home. 4 | What Fiber Broadband Can Do For Your Community | BROADBAND of U.S. households with access to FTTH sign up for services. COMMUNITIES | www.bbcmag.com | FALL 2014 WHO IS BUILDING FTTH NETWORKS? Most of the FTTH connections in the United States come from large telephone companies. Verizon, which started offering services on its FiOS network in 2005, was the first major company to deploy fiber to the home and now accounts for about two-thirds of FTTH connections. AT&T and CenturyLink have built FTTH in new communities for nearly a decade, and recently they announced gigabit FTTH deployments in multiple U.S. cities. The large franchise cable companies have also experimented with fiber to the home, especially in new communities. As the demand for “gigabit services” grows, they seem likely to build FTTH on a larger scale in the next few years. However, that doesn’t tell the whole story, because more than 900 entities are providing FTTH services in the United States today, and most are small. Nearly all were in the telecommunications business to begin with – they are independent telephone companies, franchised and private cable companies, local Internet service providers, wireless ISPs and even satellite video companies. In addition, new companies have formed specifically to build fiber optic infrastructure in underserved areas. RST Fiber in North Carolina and ValuNet in Kansas are recent examples of this phenomenon. Local governments are attracted to FTTH because it positions their communities for tomorrow’s jobs and economic growth. In areas where no private cable or telecom companies have taken the initiative, many communities reach out to nontraditional providers or even build their own systems. In 2010, when Google announced that it planned to build one or more community fiber networks, more than 1,100 local governments proposed their communities as suitable locations. Several smaller software companies have been working with communities to build FTTH networks. Other nontraditional providers include cooperative electric utilities, property developers and even universities. It makes sense for these forwardlooking organizations to build FTTH networks. Most property developers can enhance the value of their real estate by putting fiber into new properties or upgrading existing properties. Some small electric companies built fiber 1 OF 7 households worldwide can be served by fiber to the home or fiber to the building. optic networks to manage their own facilities and can extend these networks to serve their customers as well. Some municipal governments build their own fiber networks or collaborate with neighboring communities to do so – there are now close to 150 FTTH projects of this kind, as well as about a dozen FTTH networks built by Native American tribal authorities. Some serve only businesses; most serve households as well. NO. 15 U.S. rank among 34 OECD nations in percent of broadband connections that are fiber 200 MILLION Chinese households can be served with fiber to the home or to the building. ESTONIA, SLOVENIA, SLOVAK REPUBLIC AND TURKEY are among the 14 countries that outrank the U.S. in percentage of FTTH connections. FALL 2014 | www.bbcmag.com | BROADBAND COMMUNITIES | What Fiber Broadband Can Do For Your Community | 5 Why Fiber? The copper and wireless last-mile connections to customer premises have inherently limited capacity, unlike fiber connections. The newest model for FTTH deployment involves collaborations in which both public and private entities take significant ownership stakes in a network. This model has the potential to combine the best aspects of public and private ownership. FTTH IS THE ONLY UNLIMITED BROADBAND TECHNOLOGY As mentioned, most networks are already largely fiber-rich. Cable providers use fiber to get close to homes and then employ copper coaxial cable for the last 100 to 1,000 feet. Many phone companies also bring fiber to within a few thousand feet of homes and use copper wire for the rest of the trip. Fourth-generation wireless broadband, which is widely deployed today, usually requires fiber connections at cell sites. But the copper and wireless “last miles” to customer premises still have inherently limited capacity. Tweaking more bandwidth from them becomes increasingly difficult and expensive as NO. 1 The amenity most desired in MDU buildings is fast Internet. time goes on. This isn’t true of optical fiber, whose capacity is effectively unlimited. The technologies for transmitting data over fiber are well understood, and the upgrade path for the electronic components that send and receive signals has been defined for years into the future. If anything, increasing fiber At the Noblis Center for Applied High Performance Computing, Danville, Va.’s fiber network enables always-on videoconferencing. 6 | What Fiber Broadband Can Do For Your Community | BROADBAND COMMUNITIES | www.bbcmag.com | FALL 2014 90% of seniors who own MDU homes demand fast Internet. bandwidth will become less expensive rather than more expensive. THE PAYOFF FTTH providers enjoy much greater revenue than traditional broadband providers. FTTH subscribers today often spend 30 to 40 percent more per month than DSL subscribers – not because basic services are more expensive (they aren’t) but because more and better premium services are available. For example, multiple simultaneous HD channels are difficult to implement well over any medium but fiber; the new 4K TV and high-definition 9X The new fiber lines that Verizon used to replace the copper that Hurricane Sandy destroyed in lower Manhattan are nine times as reliable as the average for all New York State, which includes both copper and fiber. video communications are even more challenging. Taking pay-TV services on the road (true TV Everywhere) requires high upstream bandwidth at home. On average, FTTH offers three times the upstream bandwidth of its closest competitor. Home energy management services, home security and medical monitoring services all benefit from fiber’s high reliability. In general, access to utilities makes private property more valuable, and FTTH is among the utilities that owners and renters especially value. Fiber connections make singlefamily homes easier to sell and multiple dwelling units easier to rent – in fact, according to a recent survey by RVA LLC, buyers of houses and condominiums are willing to pay a 3 percent premium for a fiber-connected home, and renters are willing to pay an 8 percent premium. Renters and buyers both know they can get the most attractive services available on the market today – and that if an exciting new service is introduced in a few years, they’ll be prepared for that as well. In addition, working from home – either as a telecommuting employee or a homebased entrepreneur – is far easier with FTTH than with other types of broadband connections. FTTH communities have an advantage in attracting everything from advanced manufacturing to contact centers to data centers. They can nurture the tech startups and home-based businesses that will provide tomorrow’s jobs. They can provide better education and health care for residents, deliver government services more efficiently and engage citizens in government. This publication explores these issues, and more, in detail. It’s written in nontechnical language so you can understand the value of next-generation infrastructure – and what it means to you – without a degree in optical engineering. In these pages you’ll see... the advantages of fiber to the home. v 900+ 100+ U.S. entities are deploying FTTH. 42% is the annual increase in Internet traffic – year after year, for decades. U.S. entities offer gigabit FTTH. 150+ U.S. localities offer FTTH to residents or businesses. FALL 2014 | www.bbcmag.com | BROADBAND COMMUNITIES | What Fiber Broadband Can Do For Your Community | 7 Fiber and Bandwidth Q: What is bandwidth? A: In a network, bandwidth (what engineers call bitrate) is the ability to carry information. The more bandwidth a network has, the more information it can carry in a given amount of time. Networks with high bandwidth also tend to be more reliable because fewer bottlenecks disturb the flow of information. have both entered the era of big-data applications that collect and analyze data on massive scales. Today’s big-data applications range from consumer pricing models to DNA sequencing to particle physics to control of electrical grids. Big data doesn’t work without big bandwidth. A DNA sequencer produces enough data to monopolize a 2.5 Gbps connection. Q: What about other kinds of data? A: Bandwidth requirements for many kinds of data are exploding. For example, think about uploading photos to a cloud storage facility such as iCloud. Digital cameras can create larger and larger images; 30 megabytes is not uncommon. And amateur HD video cameras use about 10 gigabytes per hour of video – the equivalent of 300 of those 30 MB still images. In health care, the medical images produced by equipment such as CT scanners are a hundred times larger than camera images, and more. Business and science Mbps Q: How much bandwidth – or information delivered by bandwidth – do we need? A: The amount of bandwidth we need grows every year. Worldwide Internet traffic roughly doubles every two years and has been increasing even faster lately because of smartphone use. The biggest growth has been for video – traditional pay TV, over-the-top or Internetbased video, and video communications. By the end of 2013, network equipment vendor Cisco noted that traffic had reached levels not expected until 2020 – seven years ahead of schedule. Video requires not only extra bandwidth but also extra reliability. The smallest delay in data transmission can result in distorted views. More video is available than ever before, and people are watching video on more screens at once. In addition, video formats are becoming more bandwidth-intensive. HDTV can require 8 megabits per second (Mbps) or even more for fast action such as in sporting events, with MPEG-4 compression technology. So-called 3D immersive HDTV – already used in some academic and industrial settings for telepresence – requires between 50 Mbps and 300 Mbps. 4K video, which has four times the pixels of today’s 600 best-quality HDTV broadcasts, requires 16 to 32 Mbps even with the new HEVC 500 compression, depending on how fast the 400 screen action is and how much of the screen is taken up by fast-moving objects. Q: Can’t copper carry high bandwidth? A: Copper’s capacity is far less than fiber’s. It can support high bandwidth for only a few hundred yards. The longer a signal travels on copper, the lower the bandwidth. Optical fiber is unique in that it can carry highbandwidth signals over enormous distances. Fiber uses laser light to carry signals. Under some circumstances, a signal can travel 60 kilometers (36 miles) without degrading enough to keep it from being received. The international minimum standard is 20 kilometers (12 miles). Fiber is also far better able to support upstream bandwidth – that is, from a user to the network. Q: What’s the difference between upstream and downstream bandwidth, and why is it important? A: In the debate about FTTH versus copper-based broadband, people tend to argue in terms of downstream bandwidth because most users have needed more DSL Bandwidth Declines with Distance from Fiber Node VDSL2 VDSL2, Vectoring G.fast, Vectoring 300 200 100 0 0 500 1000 1500 2000 2500 3000 Feet from Fiber Node The bandwidth of a DSL signal declines with distance from the fiber node. VDSL2+, the most advanced form of DSL in general use, can deliver about 30 Mbps download speed at 3,000 feet, depending on the quality of the copper. Vectoring and bonding (combining the VDSL signals among multiple copper wires) can increase the speed. G.fast, a new technology, can reach 500 Mbps for 100 feet when copper is high quality, dropping to 325 Mbps download speed and 325 Mbps upload at 150 feet. VDSL has very poor upload speeds (typically a fifth of download speed), but G.fast achieves symmetrical speeds by adding a sophisticated transmitter at the customer end. 8 | What Fiber Broadband Can Do For Your Community | BROADBAND COMMUNITIES | www.bbcmag.com | FALL 2014 The equipment used to send light signals over glass fiber keeps getting better. downstream bandwidth than upstream – especially for bringing video entertainment into their homes. But emerging consumer uses such as home video uploads, cloud storage, distance learning, video communication and telemedicine may require as much upstream bandwidth as downstream. Small businesses, often homebased, may need upstream bandwidth as well – consider a wedding photographer sending proofs by email to clients. Businesses now often copy all their working data files for safekeeping to a remote computer center. Q: What about wireless? I hear 4G wireless can provide 54 Mbps. In Singapore, there’s a wireless carrier boasting 300 Mbps! A: That’s the potential bandwidth shared by all users connected to a cellular antenna. A wireless user might get high speeds for a moment or two if no one else is around, but average wireless speeds, even for 4G, are similar to those for DSL. Wireless broadband depends on fiber to move information to and from cell towers. Even so, each antenna can support only a finite number of cellular signals. Cellular data traffic grew 300-fold from 2006 to 2013 and will grow another sixfold by 2017. Providers severely limit wireless data, encouraging or forcing customers to use Wi-Fi connections instead of cellular networks for data. Those Wi-Fi connections, in turn, work best when they can quickly offload data to a fiber network. A typical cellular data plan allows 3 or 4 gigabytes per month. Use your phone to view video, and you quickly run over the limit. Q: What exactly makes fiber “future proof”? A: The equipment used to send light signals over optical fiber keeps getting better. So Fiber: The Light Fantastic Fiber optic cable is made up of hair-thin (or thinner) strands of glass that carry information by transmitting pulses of light, which are usually created by lasers. (Copper cable, by contrast, carries lowvoltage electrical signals.) The pulses are turned on and off very, very quickly. A single fiber can carry multiple streams of information at the same time over different wavelengths, or colors, of light. Fiber has many advantages over copper wire or coaxial cable: 1 2 Great for rural areas. Signals travel long distances inside fiber cable without degradation – 35 miles or more in some real-world networks and 65 miles or more in the laboratory. Easy to deploy. Fiber cable is thin and flexible. An individual fiber can be thinner than a human hair. Thin fibers can be packaged in a narrow ribbon or inside a hollow plastic microduct less than 1/8 inch in diameter. Fiber cable can be hidden easily on the surfaces of walls in old buildings. There are even hairthin fiber products that can be attached with adhesive and painted over. 3 4 Future-proof. Once installed, fiber is upgraded by changing the electronics that create and receive the light pulses, not by replacing the cable itself. Rugged and weatherproof. Fiber cable has a longer life than copper because it does not corrode, is not easily affected by water and generates no heat. It isn’t damaged by lightning. Nothing hurts it except a physical cut or the destruction of the building it is in. 5 Low operating costs and high environmental benefits. Fiber networks cost less to operate than copper. The most common FTTH network technology, GPON, uses no electronics – and therefore no power – between the provider’s central office and the customer premises, which minimizes operating costs. Even optical networks that do require electronics in the field use far less power than copper networks do. 6 Reliable. Fiber is far more reliable than copper. Surveys by market researcher Michael Render of RVA LLC show that a typical DSL modem has to be reset by the user about once a week. For fiber, it is once a month or less. This is critical for telemedicine and for distance learning, but it is also important for businesses. We have all sought to pay for something by credit card only to find that the card reader is not working. This is usually because the DSL or cable modem connection has been lost. A few lost sales per month can cost a retailer more than the monthly fee for the connection! FALL 2014 | www.bbcmag.com | BROADBAND COMMUNITIES | What Fiber Broadband Can Do For Your Community | 9 Fiber and Bandwidth In a properly designed fiber network, users will always get the speeds that are advertised – or better. equipping an existing fiber network with new electronics and with lasers that pulse light faster, or lasers that use different wavelengths of light, can vastly increase available bandwidth without changing the fiber itself. New electronics are very cheap compared with the original cost of laying the fiber. At the customer end, the system can be designed so that customers themselves can simply pull an old unit out and plug a new one in. Therefore, once fiber has been deployed, network operators can keep increasing bandwidth as needed at very little cost. Q: How long has fiber optic technology been in use? A: Fiber optic cable is the foundation of the world’s telecommunications system. It has been used for more than 30 years to carry communications traffic from city to city and from country to country. Almost every country has some fiber optic cable, delivering services reliably and inexpensively. The first time fiber delivered a signal directly to a home (in Hunter’s Creek, Fla.) was more than 25 years ago. Q: All providers seem to claim they have fiber networks. What’s different about fiber to the home? A: Don’t be fooled! It is true that most cable and FTTN (DSL) networks use fiber. In these networks, the fiber carries the signal close enough to homes so that copper can carry it the rest of the way. However, this approach requires expensive, difficult-to-maintain electronics at the point where fiber meets copper. (These electronic devices use a great deal of power and are quite sensitive to lightning strikes. Even the cost of bringing electric power to them can be huge, depending on where they are located.) The available bandwidth is far less than in an all-fiber network. And most of these halfway approaches do not allow symmetrical bandwidth – cable and DSL systems generally can’t upload information as fast as they can download it. Q: Isn’t a network with some fiber good enough? A: It may be fine to send emails, download songs or share family photos. If you want to log on to the corporate LAN from home and work effectively, or run a homebased business, you’ll need more. And what about uploading a high-def video of your child’s football game, or sitting down to dinner virtually with family members a thousand miles away? Q: Why does it matter how close to the home fiber comes? A: With copper cable, bandwidth drops precipitously with distance. The most recent expedient, vectored DSL, allows 50 Mbps downstream for as far as 1,800 feet under ideal conditions. It won’t work on very old copper wiring, its upstream bandwidth is limited and it requires expensive electronics. However, it is touted as an interim solution for network builders that cannot afford FTTH. A new technology, G.fast, is being fieldtested now; under ideal conditions and with vectoring (crosstalk cancellation), G.fast is expected to provide 500 Mbps symmetrical bandwidth up to 300 feet from a fiber node. G.fast may prove to be an excellent solution for retrofitting apartment buildings with fiber to the basement (as long as those buildings already have good internal copper wiring), but it requires bringing fiber very close to customer premises and is still limited in comparison with true fiber to the home. Q: With cable and DSL, there’s often a gap between advertised and actual bandwidth. Is that true for fiber? A: No. Cable, DSL and even wireless networks are usually heavily oversubscribed – that is, providers promise users more than the total amount of available bandwidth because they know all users aren’t going full throttle most of the time. As a result, networks slow down during periods of heavy use, such as when teenagers come home from school. Copper networks are also more subject to speed degradation due to the condition of the wiring. Fiber has enough bandwidth and reliability that providers can guarantee high speeds with little or no oversubscription. If a fiber network is designed properly, users will always get the speeds that are advertised – or better. Data published by the FCC in June 2014 showed that, on average, fiber-to-the-home services delivered 113 percent of their advertised speeds. The FCC published data in June 2014 showing that, on average, fiber-to-the-home services delivered 113 percent of their advertised speeds. 10 | What Fiber Broadband Can Do For Your Community | BROADBAND COMMUNITIES | www.bbcmag.com | FALL 2014 Is It Really Fiber To the Home? W hen service providers advertise “fiber rich,” “fiber deep” and “fiber optic” networks, how do you know whether you’re really getting fiber to the home? In 2006, the FTTH Councils for Europe, Asia and North America standardized the definitions for fiber to the home and fiber to the building (also called fiber to the basement). They are as follows: FIBER TO THE HOME (FTTH) A fiber optic communications path that extends from an operator’s switching equipment to at least the boundary of a home living space or business office space. The definition excludes architectures in which the optical fiber terminates before reaching either a home living space or business office space, with the access path continuing over a physical medium other than optical fiber. Also called fiber to the premises (FTTP). FIBER TO THE BUILDING (FTTB) A fiber optic communications path that extends from an operator’s switching equipment to at least the boundary of a private property that encloses homes or businesses. The optical fiber terminates in the basement or, in larger buildings, in a closet on each floor, but not in home living spaces or business office spaces. The access path then continues over another access medium, such as copper or wireless, to subscribers. Only FTTH is truly unlimited, but FTTB can provide as much capacity as most households and small businesses can use today. Also called fiber to the basement. Often used in multiple-dwelling-unit buildings. SOME “FIBER” NETWORKS ARE NOT FIBER TO THE HOME Other network architectures, such as FTTN, FTTC, FTTdp and HFC, do not fit the FTTH Councils’ definitions. Their capacity depends on how far users are from nodes and on the number of users on each node. FIBER TO THE NODE OR FIBER TO THE NEIGHBORHOOD (FTTN) In an FTTN network, fiber is extended to a street cabinet or an on-pole cabinet an average of 1,000 to 5,000 feet from users. From there, copper, or occasionally wireless, serves users, typically through a variant of DSL. FIBER TO THE CURB OR FIBER TO THE CABINET (FTTC) FTTC is similar to FTTN except that the fiber is brought closer to user premises – typically closer than 1,000 feet and often closer than 300 feet. Service continues over copper (rarely wireless), using a DSL variant or Ethernet. FIBER TO THE DISTRIBUTION POINT (FTTdp) In this emerging Q: Is FTTH technology expensive? A: In new construction, fiber costs about the same as copper to build, and it costs much less to operate and maintain. Building fiber to the home is expensive only when compared with not building a new network – that is, with making minor tweaks to an existing copper network. The problem is that these less-expensive solutions don’t meet users’ needs. In the last few years, the flood of video content has outrun the ability of older architecture, fiber is brought very close to a building – sometimes right outside – and the fiber termination unit is placed along with a DSL modem in a small enclosure (the distribution point). Signals are carried using one of the newer variants of DSL – VDSL2 or G.fast – to anywhere from one to 16 subscribers. Distribution points may take their electric power from the customer premises. HYBRID FIBER-COAX (HFC) This architecture is used mainly by cable TV companies and is common in community broadband networks built before 2004. In a typical HFC system, fiber runs to a node in each neighborhood, and coaxial cable running from the node serves between 100 and 500 users. HFC networks typically use DOCSIS (Data Over Cable Service Interface Specification) technology for Internet access. A new version of this technology, DOCSIS 3.1, has an option for the first time to use fiber all the way to subscribers or to the basement of MDU buildings without resorting to RFoG (which just moves the DOCSIS node closer to users). Starting in late 2014, we expect to see a few large DOCSIS 3.1 deployments, mainly in new buildings, that use this option, with the signal carried by EPON over fiber (there is also an EPON over coax standard coming). More deployments will come in 2015 as the standard is fully adopted. copper technologies to handle bandwidth demands. In many parts of the world, providers shut off or slow down service or impose prohibitive fees for customers who exceed monthly bandwidth caps. Customers don’t like these restrictions, and they don’t appreciate being called “bandwidth hogs” for using services they have paid for. In addition, it’s not clear that providers save money by failing to meet users’ needs because limiting bandwidth means limiting revenue potential as well. v FALL 2014 | www.bbcmag.com | BROADBAND COMMUNITIES | What Fiber Broadband Can Do For Your Community | 11 Why We’ll Always Need More Bandwidth Hundreds of millions of consumers store their data files in the “cloud,” using services such as Apple iCloud, Microsoft OneDrive, Google Drive and Dropbox.. not your own PC. Users no longer know or care exactly where their files are located or their programs are running – that’s what makes it a cloud. All they need is fast, reliable Internet access. Families now stay in touch via social media and video calls – Facebook, Skype and Twitter have become household words. Businesses use video communication whose quality is good enough to bring the illusion of “being there” to teleconferencing. It’s called telepresence. High-definition video communication has even reached the home market; telecommuting workers can send telepresence robots in their offices to sit in for them at meetings while they participate via their home TVs. Today, people visit doctors from home or work, saving a trip to the doctor’s office or emergency room if they don’t need to be seen in person. (Home telehealth is a great way to reduce hospital readmissions.) They take classes from home – MOOCs, Photo courtesy of UC2B I n a century of telephone communications, the bandwidth on voice channels changed very little. Today, however, Internet bandwidth needs are growing exponentially. Cisco Systems estimates that global Internet traffic in 2018 will be equivalent to 64 times the volume of the entire global Internet in 2005. Globally, Internet traffic will reach 14 gigabytes per capita by 2018, up from 5 gigabytes per capita in 2013. To put that another way, global Internet traffic increased more than fivefold in the past five years and will increase at least threefold over the next five years, Cisco predicts. On the Internet, bandwidth drives innovation, and innovation drives bandwidth demand. Sure, increased bandwidth lets us send email faster, but bandwidth’s real value is that it lets us do entirely new things. In the past few years, we’ve seen Internet video evolve from a novelty to the standard way of accessing news, information and entertainment. We’ve seen a host of new Internet-connected devices – always-on smartphones and tablets that keep us connected with the world full time, smart TVs (and TV-connected devices such as Roku boxes and Chromecasts), home security devices that broadcast alerts and video images to our phones. Who had heard of the “cloud” a few years ago? Today, consumers and businesses store their data, run their programs and even access computing power “in the cloud.” More than 300 million people store files on Apple iCloud, 250 million on Microsoft OneDrive, 175 million on Dropbox and 120 million on Google Drive – to name just a few of the more popular cloud storage systems. The default storage location setting in the most recent version of Microsoft Office is OneDrive, Fiber ambassadors sign up their neighbors for a new FTTH network. 12 | What Fiber Broadband Can Do For Your Community | BROADBAND COMMUNITIES | www.bbcmag.com | FALL 2014 19 MILLION MILES of fiber were laid in the U.S. in 2011, a record year. 44 MILLION MILES of fiber were laid worldwide in the second quarter of 2014. 32% Growth of busy-hour Internet traffic from 2012 to 2013 1.0 PETABITS PER SECOND Busy-hour traffic forecast for 2018, the equivalent of 335 million people streaming HD video continuously Telecommuting and home-based businesses are on the rise, too. A quarter of all owners of home-based businesses say they could not operate without fiber to the home, and telecommuters say their employers would be less likely to let them work from home without fast, reliable fiber broadband. There appears to be a pent-up demand for working from home at least part-time – in a recent survey of federal employees, 93 percent said they valued the option to telecommute. There is every reason to believe that innovation will continue, that bandwidth needs will keep on growing – and that only fiber to the home, with its superior reliability and vastly superior upstream capacity, will be able to keep delivering the goods. Here are a few of the new applications emerging now: • • • • or massive open online courses, give anyone and everyone a taste of what the country’s leading universities have to offer. The most popular MOOC platform, Coursera, boasts more than 22 million enrollments in its courses. • • Ultra high-definition video with four times the pixels of conventional HD creating massive bandwidth requirements. (With the new home video cameras that can shoot in Ultra HD format, the demand will be as great for upstream bandwidth as for downstream.) E-jamming and rehearsal applications for musicians and music teachers requiring perfect synching of multiple remote audio streams. Remote operation of complex equipment, such as medical robots, electron microscopes, radio telescopes and even nuclear power plants. Interactive classes where students can not only watch their professors but also participate in real-time, video-based discussions. 3-D videoconferencing. Virtual-world environments. v FALL 2014 | www.bbcmag.com | BROADBAND COMMUNITIES | What Fiber Broadband Can Do For Your Community | 13 Services: Beyond the Triple Play M ore than a decade ago, cable companies introduced the triple play of voice, video and data. Fiber’s greater bandwidth and reliability allow FTTH providers to think beyond the triple play and offer services tailored to communities’ specific needs. Some of these services help differentiate fiber-to-the-home communities; some generate additional revenue streams (often with high margins) or help retain customers; still others are used by providers or property developers to manage their assets more efficiently. Many do all three. Telehealth allows instant access to medical specialists via videoconferencing from a home or community center. The videoconferencing may be integrated with Internet-enabled diagnostic devices (blood pressure cuffs, respiration measurement and so forth), sensor-based home monitoring, electronic medical records systems, online prescription services and online appointment scheduling. Telehealth helps keep older adults living independently for longer, offering The services that fiber to the home supports can make your community a more appealing place to live, enable efficient asset management and generate new revenues. tremendous savings for payers and families. It is a boon for members of the “sandwich generation,” who are responsible for caring for both their children and their elders. Social applications build a sense of community. They range from community-focused social networking sites to intranet sites that feature local news and events to video channels that broadcast local athletic contests, artistic productions and political meetings. Because these offerings can be interactive, they easily trump conventional cable public-access stations. Home-automation and concierge services make residents’ lives comfortable and convenient. Cameras that recognize cars when they Electric meter set up to transmit smart-grid information 14 | What Fiber Broadband Can Do For Your Community | BROADBAND enter a community can alert parking attendants and security personnel and then turn on lights and heating or air conditioning at home. Residents can view the laundry room, connect to community services or schedule a dry cleaning pickup, pizza delivery or home repair. These applications also help owners control energy use. Mobility is easier to accommodate with a robust fiber-to-the-home network. Using the backhaul afforded by fiber, providers can offer Wi-Fi connections to residents in indoor and outdoor public spaces without overloading the network. Residents can bring their laptops or tablets to a pool area, check email from a laundry room, check the laundry status from a community room or listen to Internet radio in a gym. ADD NEW REVENUE STREAMS Because fiber-to-the-home networks have virtually unlimited capacity, unparalleled reliability and remote service monitoring, fiber providers have a wide choice of applications for resale. The smart electric grid is expected to radically improve the business case for fiber to the home. Connecting electric meters to fiber enables automated meter reading at frequent intervals, providing massive data for analysis and planning. Automated meter reading is usually the first smart-grid application that utilities deploy because it is relatively straightforward to implement and has an immediate payback. Though most COMMUNITIES | www.bbcmag.com | FALL 2014 Telehealth FTTH deployers that have installed smart meters are public or cooperative electric utilities, a few telcos install and read smart meters for utilities. Beyond automated meter reading, such smart-grid applications as demand-response programs, SCADA and outage detection greatly reduce electric utilities’ operating costs. Smartgrid applications are major reasons that electric utilities across the country have long been connecting their own equipment with fiber networks. Mobile backhaul is another enormous revenue opportunity for fiber deployers. The exploding demands for mobile bandwidth are prompting wireless providers to upgrade the connections from their cell sites to the Internet (traditional connections are usually copper T1 lines with 1.5 Mbps bandwidth; the latest fiber connections are a gigabit per second, more than 600 times the bandwidth). Half of cell sites are now served by fiber, and more are added every day. In addition, the next generation of wireless architecture (LTE-Advanced, which is now in field trials around the world) will move all baseband processing from cell sites to the cloud; cell sites will have to be connected via fiber to the hubs where processing takes place. Broadband providers offer many other applications through Web portals or set-top boxes, often at lower prices than customers could obtain by purchasing these services directly. In addition to creating new revenue streams, these applications reduce customer churn, and they lower expenses by keeping more traffic in-network. Business services have become a major new revenue source for FTTH deployers because the cloud computing revolution has moved storage, applications and computing capacity from the desktop to the Web. Service providers now supply managed F iber is the technology of choice for in-hospital networks and for consultations between local clinics and off-site specialists, which help improve the standard of health care outside major metropolitan areas. Until recently, however, regulatory requirements limited the opportunities for home-based telehealth. That’s now changing. A new Apple initiative, in partnership with the Mayo Clinic and dozens of other health care providers, could be on the verge of helping to solve one of the biggest problems in the U.S. economy – one out of every six dollars spent in the U.S. is spent on health care. This is far more than any other country on Earth spends, yet results are meager: The U.S. ranks 26th in life expectancy, right behind Slovenia. To start, Apple is releasing programming interfaces that allow any interested parties to create a wide range of personal health and activity monitoring apps. The company has also improved upon inexpensive sensing chips that can be embedded into a wide range of products, from iPhones to watches to home exercise machines – thus potentially kickstarting a slowly growing field. While the Apple initiative is aimed at younger individuals, NewCourtland, a senior services provider in Philadelphia, has been operating its LIFE telehealth program, modeled on the Medicare/Medicaid Program of All-Inclusive Care for the Elderly (PACE) initiative, since 2007. In August 2014, it doubled its service area. PACE serves individuals age 55 or older who are certified to need nursing home care, are able to live safely in the community and reside in a PACE service area. In the LIFE program, remote monitoring helps substitute a $125 per month technology cost per person for $225+ per day in nursing home costs. By employing remote monitoring over broadband, NewCourtland enabled 33 residents to move safely from traditional nursing home care to less restrictive environments, realizing an annual savings of more than $1.8 million. Fiber providers, whose networks rarely suffer outages, have a huge advantage over DSL or cable providers in supporting programs like this one. Some 104 providers in 31 states had received Medicare and Medicaid waivers to operate PACE programs as of summer 2014. “Keeping even one person out of the hospital can pay for all systems for a PACE program for a year,” said Jim Reilly, then director of Courtland Health Technology. The NewCourtland program could be copied by many local network providers under current regulations. Some continuing-care providers are now using similar approaches, backed by fiber-to-the-unit networks, to keep residents from escalating to higher levels of care. Remote monitoring also promises to reduce the cost of treating patients who have chronic diseases. A U.S. Department of Veterans Affairs review of its home telehealth program found a 25 percent reduction in the average number of days hospitalized and a 19 percent reduction in hospitalizations for patients using home telehealth. For some patients, the cost of telehealth services in their homes averaged $1,600 a year – much lower than in-home clinician care costs. Several innovative telehealth applications are being developed and tested in gigabit communities today under the aegis of the US Ignite program. Some of these include video-based support for caregivers of dementia patients, a solution for home-based psychological counseling and 3D video interaction for physical therapy. FALL 2014 | www.bbcmag.com | BROADBAND COMMUNITIES | What Fiber Broadband Can Do For Your Community | 15 Services services to business customers that until recently were provided only by corporate IT departments. Hosted PBX services are rapidly replacing on-premises PBX equipment, and online backup, storage and disaster recovery services are replacing the tape libraries of earlier days. Unified communications, managed Wi-Fi, transparent LAN and email exchange services are also popular offerings. In addition, many fiber network deployers derive revenue from allowing business customers to colocate servers in their data centers or central offices. Home security, like many other technologies, is migrating from analog to digital. Digitally based home security allows residents to control settings, receive alerts and view their homes via PC or cellphone. Digital security systems also support a wider range of sensors – not only traditional motion detectors but also cameras, water detectors, carbon monoxide monitors, smoke detectors and many others. With FTTH’s high upstream bandwidth, home surveillance cameras can even upload video footage of home intrusions to owners’ cellphones, police departments or security monitoring companies. Because digital security uses wiring already installed for broadband, it is inexpensive to install and makes economic sense for renters as well as homeowners. Over-the-top video (delivered via the data service, not the video service) may be offered as either an adjunct to or a substitute for traditional pay TV, and it may be delivered through either a Web portal or a set-top box. The business models, technologies and legal status of provider-delivered OTT video are evolving rapidly – a fact that demonstrates the enormous amount of interest in this application. If OTT video eventually displaces traditional pay TV, fiber-to-the-home providers are well-positioned to benefit because they can guarantee the quality of user experience. Videoconferencing or video chat is universally available through free or low-cost Web-based services, but the quality of low-end services is often poor. Fiber to the home, with its high upstream bandwidth and its reliability, presents opportunities for providers to make high-quality videoconferencing available through TV screens. Targeted advertising represents an important potential revenue stream. In IP-based networks, ads can be sent to households or specific TVs or other devices based on demographic criteria or viewing patterns. Another potential source of advertising dollars is T-commerce, in which television viewers click on ads – or even product placements in television shows – to see more information about products or order them. MANAGE ASSETS MORE EFFICIENTLY Broadband enables property owners to manage their assets efficiently and allows them to avoid costly upgrades or replacements of proprietary asset management systems, such as fire protection systems. The addition of broadband – especially the highcapacity, high-reliability broadband that fiber enables – turns “smart” buildings into “genius” buildings. Internet-enabled sensors and applications automate work that was once done by maintenance crews – and get it done it more quickly and accurately. Broadband applications also help owners communicate with tenants and employees. • • • • • • • • Rural telco BEK brings local sports events to its video customers; this is the mobile studio. 16 | What Fiber Broadband Can Do For Your Community | BROADBAND Guarding buildings and construction sites can be managed inexpensively and intelligently through IP-based video surveillance. Videoconferencing allows construction managers to make virtual site inspections more frequently than they can make physical inspections. Online work order scheduling helps property managers be more responsive to their residents while reducing operating expenses. Residents can request repairs at any time – not just when the office is open or they can find the superintendent – and management personnel can deal with problems that require personal attention rather than routine requests. Residents can be automatically notified when work is completed. Proprietary building management networks, such as fire protection systems, can be replaced by standards-based systems that are less expensive. Energy management and water management can be broadbandenabled. Motion sensors, intelligent thermostats and automated ventilation equipment can keep public spaces and unoccupied units at appropriate temperatures; applications that monitor and analyze usage help property managers and residents find opportunities to shift loads to nonpeak times and reduce their overall usage. v COMMUNITIES | www.bbcmag.com | FALL 2014 Education Goes Broadband W “Every time you increase the speed of the network, you are enabling incredible educational opportunities.” – Bailey Mitchell, CTO and CIO, Forsyth County (Ga.) Schools The system takes into account learning interests and learning style to increase student engagement and boost academic performance. Students can learn at home on their own or at school, using high-speed Internet connections, and be rewarded by their teachers in collaborative settings. Forsyth County’s Bring Your Own Technology (BYOT) program lets students use their individual Internetcapable tablets, laptops, netbooks and cellphones to work in classrooms. Other schools around the country have substituted standard equipment – iPads, Chromebooks and so forth – vastly cutting their maintenance costs while creating new learning environments. In Forsyth schools, for instance, students participating in the NOBLE Photo courtesy of Belen Jesuit Preparatory School hen it comes to education, can communities afford not to assure highcapacity broadband for residents? Today’s fiber-connected schools demonstrate how broadband enhances students’ educational opportunities. Though most schools now have Internet access, adequate school broadband is still rare. But over the next few years, fiber-connected schools should become more common, thanks to the federal government’s new ConnectED initiative. One big issue that is taking longer to solve: ensuring that all students have access to broadband after they leave the school building for home. The Forsyth County school district in Georgia uses a business Ethernet connection from Comcast to support streaming video, interactive whiteboards, mobile devices and digital content for its 40,000 students. A next-generation learning system provides individualized learning plans based on students’ needs, preferences and performance, helping to keep this Atlanta suburb’s district among the state’s top 10. Students at Belen Jesuit Preparatory School in Miami began using iPads in the classroom during the 2011-12 school year. In this picture, sixth-grade students use iPads during a Spanish class taught by Alicia Fariñas. Virtual World project interact in a digitally created world where they can create anything they imagine. Students develop creativity, data analysis and problem-solving skills by working in teams and creating plans and solutions. Forsyth County Schools reduced its textbook costs by about 85 percent using interactive online content, including streaming video, simulations and other digital resources that, unlike physical textbooks, are kept always up to date. Administrative offices also benefit from fast, efficient data transmission as well as from file sharing and document storage via the district’s central server. “Bandwidth is the key. The only way to have access to all that digital content is to connect the technology and infrastructure in support of it,” said Bailey Mitchell, chief technology and information officer for Forsyth County Schools. “My view is that every time you increase the speed of the network, you are enabling incredible educational opportunities.” Connected schools offer students the opportunity to take interactive field trips to museums and historical sites, study specialized subjects with teachers at other schools, and watch activities ranging from neurosurgery to Himalayan expeditions in real time. School districts with superior broadband capabilities use “flipped classrooms,” in which teachers record lessons as videos on YouTube or similar sites and students study the lessons at home. In school, students solve problems based on the previous night’s lesson and get individual help from teachers. v FALL 2014 | www.bbcmag.com | BROADBAND COMMUNITIES | What Fiber Broadband Can Do For Your Community | 17 FTTH for Communities B y summer 2014, the number of public and public-private fiber networks in the U.S. reached about 145 – and many of these serve multiple communities. Many communities are expanding the networks they started building in earlier years, thanks in part to stimulus funding, and are upgrading them to offer gigabit-speed service. In 2012, Google launched gigabit Internet service in Kansas City, Kan., and Kansas City, Mo. – locations it chose in large part because the city governments were willing to collaborate with it. In 2013 it expanded to Austin, Texas, and acquired the municipal FTTH network in Provo, Utah. It also announced that it would negotiate with localities about expansion in nine other metropolitan areas with 34 communities. All this activity has made municipal officials keenly aware of the potential for using ultra-broadband to promote economic development and enhance the quality of life in their communities. They are looking for new ways to encourage private providers to build FTTH networks, new partnership arrangements with telecom providers and new ways to leverage such municipal assets as conduit, utility poles and existing fiber. And they are finding takers – there are more than 100 networks offering or soon to offer gigabit services. Many are operated by small telcos, some of which have partnered with municipalities. Questions Municipal Officials Ask About FTTH Q: Will a fiber network help bring new business into my community? A: There’s growing evidence that fiber connectivity encourages businesses to stay, helps businesses grow and become more productive, and attracts new businesses, particularly in high-tech industries. FTTH supports home-based startup businesses and helps workers telecommute. It makes a community a more attractive place to live – especially for young people – which can stem the population loss that many small communities experience. If inadequate health care resources hamper economic growth, fiber connections permit local health care providers to call upon specialists in regional health centers. And if an unprepared workforce is a hindrance to business expansion, fiber connectivity can enable costeffective distance learning. FTTH is only one component of an overall economic development strategy – but it’s a vitally important one. Q: How can I get fiber to my residents without building my own network? My town has too much debt now to borrow more, and we have no experience operating a municipal utility. A: Lobby the incumbents – the cable and telephone companies that serve your town now. Lobby competitive providers or even local businesses that need more bandwidth and have the capability to undertake such a project. Offer such incentives as reduced franchise fees, Fiber to the home is only one component of an overall economic development strategy, but it’s a vitally important one. access to public property or an accelerated permitting process. If you own an institutional fiber ring that connects municipal buildings, schools and libraries, or if your traffic lights are connected by fiber, you might be able to propose fiber swaps to a potential provider. Take a fiber inventory to find out whether there is abandoned or unused fiber in your town that might either revert to the locality or be donated in exchange for a tax exemption. Educate residents about the value of FTTH, and encourage them to commit to taking fiber services if and when a provider offers them. Start a community fiber campaign on CrowdFiber.com or a similar site so you can document the extent of subscriber interest in fiber broadband. Alternatively, enter into a partnership to build a fiber network jointly with a private partner. In Europe, such partnerships are common, and the approach has begun to gain traction in the United States. A variety 18 | What Fiber Broadband Can Do For Your Community | BROADBAND COMMUNITIES | www.bbcmag.com | FALL 2014 Pulaski Electric System, a municipal electric utility in Pulaski, Tenn., uses its FTTH network to operate a smart electric grid and deliver triple-play services to residents. of arrangements between the public and private parties are used, depending on legal requirements and on each party’s assets and capabilities. In 2011, a group of university communities banded together to invite both incumbent and competitive providers, as well as nontraditional providers, to build advanced networks. This project, called Gig.U, has given rise to several FTTH projects. Q: Wouldn’t it be better – and cheaper – to put in a community wireless network? A: Wireless services are important public amenities, but they are not substitutes or replacements for FTTH. Rather, they complement and extend fixed fiber networks. Many wireless access points and cell sites are already fiberconnected, and most of them will be soon. Wireless service can thus be considered an application on a fiber network rather than a separate type of network. Wireless access alone cannot attract new businesses to a community or enable businesses to grow. Wireless networks that cover wide areas are not reliable enough to deliver video and other emerging broadband services with high quality of service. Wi-Fi is highly desirable in targeted areas such as commercial shopping streets and common areas, but no one has developed a compelling business case for a municipalitywide Wi-Fi network. Q: Don’t all wired broadband networks use fiber? A: They use fiber, but not all the way to the home. Generally, the last 1,000 to 5,000 feet from the fiber’s endpoint to the home is copper – coaxial cable in cable networks, plain copper wire in telephone networks. That limits bandwidth, reliability and versatility. Q: How do I know whether my community is underserved? A: Without a fiber network, your community is underserved – or it will be very soon. Even with upgrades, your nonfiber network won’t be able to handle the ever-increasing bandwidth demands placed on it. Be sure to consider the needs of the business community in addition to those of residents – many economic development officials believe that affordable, symmetrical 1 Gbps access is needed to lure new businesses to a town. If you can’t get site selection committees to look at vacant commercial properties, or if your residents have trouble selling homes due to their poor Internet connections, your community is underserved. Q: The telephone company that operates here is installing FTTH in the new development just 10 miles up the road. Why not here? A: Installing fiber in new developments is usually easier than installing it in existing neighborhoods. The fiber goes into the same trenches that have to be dug anyway for water, electricity and sewer service. In fact, copper wiring usually can’t be run that way, so fiber is usually FALL 2014 | www.bbcmag.com | BROADBAND COMMUNITIES | What Fiber Broadband Can Do For Your Community | 19 FTTH for Communities Start preparing for fiber now by adding underground ducts whenever you or a utility repair a street or open it to excavation. cheaper. Also, the new residents have not yet subscribed to cable or phone service, so whoever installs an FTTH network in a new community has an easier time signing up customers. That’s why most new, large housing developments are being equipped with fiber. Q: Would installing fiber require that my streets be dug up? A: It depends. Many network builders in North America use aerial fiber installed on poles along with existing telephone, electric and cable wiring. Where trenching is impractical, contractors can often use horizontal drilling or pull fiber through existing ducts, water pipes, sewers and gas lines rather than digging up streets and sidewalks. When there is no good alternative to trenching, new microtrenching techniques may allow fiber to be laid with less disruption to traffic. In microtrenching, a deep groove is cut quickly into the pavement or road with a large circular saw on wheels, and fiber is laid into the groove. Finally, many cities already have usable fiber under their streets – fiber that is not being used to its limit or that has been abandoned altogether. networks or networks built by companies that specialize in bringing fiber to new buildings and subdivisions. Municipal utilities sometimes prefer to provide services directly, at least at the outset, for two reasons: First, being the service provider gives them more control over the quality of user experience; second, they may have difficulty attracting third-party providers to new networks. The downside of a closed network, however, is less variety in content and services. Many public broadband advocates believe that opening networks to innovative service providers is the best way to maximize the networks’ value for their communities. Networks built with broadband stimulus funds are required to allow open access. Q: There seem to be advantages to running closed and open-access networks. Why not both? A: Some network operators, especially smaller ones, are doing just that. Networks built with funds from the 2009 stimulus program must offer access to thirdparty providers. These have often taken the form of infrastructure-sharing arrangements. Some use local data centers as “managed service providers” that package outside content for local carriers. A network operator could also provide voice, video and data. Third parties – either content providers, or managed service providers handling multiple types of services – would add the variety of services customers expect. This is the same arrangement that all cellular phone providers use. The cell phone company provides voice, video and data. Users then customize their smartphones with third-party apps. v Q: What can I do to make installing FTTH less expensive? A: Start preparing for fiber now by adding underground ducts whenever you or a utility repair a street or open it to excavation. You can also adopt an “open trench” policy that gives telecom providers the opportunity to install ducts any time a street is opened. When it comes time for the city or a private provider to install fiber, the cost will be much lower if the fiber can simply be blown or pulled through ducts. Q: Is it better for the same company to run the network and provide services, or should we consider an open-access network with multiple providers? A: Both methods have been successful. Open-access networks, in which the public or private network builder “rents” bandwidth to a potentially unlimited number of service and content providers, are more common in Europe and Asia than in the United States. However, they have succeeded here as well. At present, most openaccess networks in the United States are either municipal Danville, Va .’s use of its own utility poles for the nDanville network saved the city time and money. 20 | What Fiber Broadband Can Do For Your Community | BROADBAND COMMUNITIES | www.bbcmag.com | FALL 2014 Gigabit to the Home A gigabit (1 Gbps, or 1,000 Mbps) will soon be the standard for both downstream and upstream bandwidth. Only fiber to the home can support symmetrical gigabit speeds. Google Fiber made “gigabit” a household word, but Google was hardly the first to offer these speeds. Many providers now offer gigabit – or even 10 gig – speeds to businesses. Among residential providers, EPB Fiber Optics (the municipally owned network in Chattanooga, Tenn.) was the first to offer 1 Gbps access throughout a large service area. It was followed by other network operators, both public and private. By mid-2014, residential gigabit speeds were available in more than 100 communities, a number that is expected to double and redouble by the end of 2015. Large companies such as AT&T, CenturyLink and Bright House Networks have now begun offering gigabit FTTH service in selected locations. More than three dozen American research universities are collaborating on Gig.U, a program to bring 1 Gbps fiber access to the communities surrounding their campuses. Multiple Gig.U projects are already underway, usually with both private and public participation. working closely with the private sector and local foundations to make sure the community derives maximum benefit from the new infrastructure. The scenario was repeated in Google’s second major deployment, Austin. In Chattanooga, Harold DePriest, CEO of EPB, called his city’s FTTH network “the basis for creating the products and services of the Internet of the future.” In 2012, 2013 and 2014 the city sponsored summer programs in which entrepreneurs and students competed to develop gigabit business ideas, tested them with customers on a live network, and won startup money and mentoring to help commercialize their ideas. US Ignite, a public-private project launched with leadership from the National Science Foundation, chose Chattanooga, Lafayette and other gigabit communities as test beds to develop the applications of the future. The project focuses on new applications in health care, education, workforce development, energy, advanced manufacturing and public safety. Mozilla Ignite, part of the US Ignite project, is an open innovation contest that awarded $500,000 to 22 developers of applications that range from remote process control to collaborative learning to public transit planning. The teams are busy fleshing out their applications. EARLY GIG ADOPTERS A survey by Telecom Thinktank and RVA LLC found (not surprisingly) that 1 Gbps subscribers are heavy Internet users – or even households with several heavy Internet users. They are online an average of eight hours per day, compared with the overall average of 2.5 hours, and they have many networked devices. Some may be streaming movies and chatting on Facebook while participating in multiple online games through multiple consoles. In addition, many are content creators. Traffic measurements by Hong Kong Broadband, which provides 1 Gbps service in Hong Kong, show its gigabit subscribers use three times more upload bandwidth than download bandwidth. Upload speed is critical for distributing HD photos and videos, efficient cloud computing and virtualpresence videoconferencing. Finally, superfast connectivity also appeals to work-at-home professionals who need low latency and rapid file transfers. v WHAT WILL YOU DO WITH A GIG? When it announced its Fiber initiative, Google offered several scenarios. “Imagine sitting in a rural health clinic, streaming three-dimensional medical imaging over the Web and discussing a unique condition with a specialist in New York,” its statement said. “Or downloading a highdefinition, full-length feature film in less than five minutes. Or collaborating with classmates around the world while watching live, 3D video of a university lecture.” Once Google began building the network, the two Kansas City governments began FALL 2014 | www.bbcmag.com | BROADBAND COMMUNITIES | What Fiber Broadband Can Do For Your Community | 21 More Information for Community Leaders and Small Network Providers I nterested in fiber to the home? Start with a visit to www.bbcmag.com. BroadBand Communities’ municipal portal, www.bbpmag.com/MuniPortal/ FTTHLand.php, can direct you to additional resources, and its FTTH deployment database at www. fiberville.com shows all FTTH deployments by municipalities and others, including small telephone companies. BroadBand Communities has also created investor feasibility models and monthly cash flow models, available free at www.bbcmag.com/FTTHAnalyzer/. The models are easy to adapt to your specific situation – whether you are in an urban or rural district, or you are a property owner looking to investigate the business case for FTTH. The FTTH Council (www.ftthcouncil.org) holds quarterly meetings and monthly webinars and offers other information for fiber deployers. See especially its Community Toolkit 22 | What Fiber Broadband Can Do For Your Community | BROADBAND COMMUNITIES | www.bbcmag.com | FALL 2014 (toolkit.ftthcouncil.org) for resources for municipalities. Note the council’s advice on organizing your community by identifying fiber champions, forging partnerships, and building consensus. Develop a business case by identifying your assets, estimating demand, building a financial model and finding the money to build. Once you are ready to build, the site offers advice on developing an RFP, finding a provider and managing the deployment. The Baller Herbst Law Group (www.baller.com) offers links to many groups working on broadband issues and to discussions of laws and regulations covering FTTH. The Blandin Foundation (www. blandinfoundation.org) is aimed at helping rural Minnesota communities thrive, but it has a national outlook when it comes to FTTH. The site includes multiple case studies. What makes a smart community? The Intelligent Community Forum (www.intelligentcommunity.org) has an annual “smart community” competition and publishes numerous reports and studies showing what communities worldwide can do with broadband. The ICF is associated with New York University. The Institute for Local SelfReliance is a nonprofit research and educational organization that provides technical assistance and information on environmentally sound economic development strategies. It is a great source of information about community broadband networks, and its broadband advice and newsletter (www.ilsr.org/initiatives/broadband, www.muninetworks.org) have helped many communities. The National Broadband Map – a continuing, nationwide collection of broadband availability and usage (www.broadbandmap.gov) – can help communities deploy FTTH networks where they are most needed and use them to best advantage. Though the data are still being refined, the map has already been used by: • • • • • Industry to site new facilities. Service providers to target new opportunities. Municipalities to monitor broadband adoption. Policymakers to target broadband grants. Native American tribal authorities to reveal broadband training needs. v Subscribe today. FREE to those who qualify. Original Research | Trusted Reports Latest Trends | Industry News www.bbcmag.com/subscribe | 877.588.1649 FALL 2014 | www.bbcmag.com | BROADBAND COMMUNITIES | What Fiber Broadband Can Do For Your Community | 23 FTTH Success Stories A lmost every new FTTH community offers a success story – young people or businesses that didn’t leave town or new businesses that arrived. However, economic development doesn’t occur inevitably as a result of investment in fiber infrastructure. Bankers have to be sold on investing in local businesses. Existing business operators have to learn how broadband can help them. Government agencies, local health care providers, educational institutions and builders all have to be brought up to “speed” on what broadband can do. The good news: Broadband offers more “bang for the buck” than any other major infrastructure category – and it can be built faster. Kansas City, Kan., and Kansas City, Mo., showed the way when they became the first Google gigabit cities. Yes, small tech companies streamed into town as soon as Google launched. But the homegrown Kansas City Startup Village, an entrepreneur-led, grassroots initiative encouraged by municipal officials, established several startup neighborhoods into which young software writers streamed. Local business groups and the mayors of both Kansas Cities offered startup help. Now the growth is expanding into underutilized office buildings downtown. San Leandro, a city of 85,000 residents across the bay from San Francisco, has long had good transportation, civic infrastructure and a history of manufacturing. Now its businesses have better-than-gigabit fiber, thanks to a private-public partnership that’s attracting a new generation of employers and keeping existing employers in town. Lit San Leandro is the brainchild of Dr. J. Patrick Kennedy, a San Leandro resident and president and founder of OSIsoft, one of the city’s largest employers. Mayor Stephen Cassidy met with Dr. Kennedy in 2011. Nine months later, the San Revitalization projects in downtown Danville have been undertaken along with the buildout of the nDanville network. 24 | What Fiber Broadband Can Do For Your Community | BROADBAND 1.1% is the increase in per capita GDP for U.S. cities with widely available gigabit services. Leandro City Council unanimously approved Lit San Leandro to install a fiber optic loop through the city’s existing conduit. Businesses get up to 10 gigabits per second. The city then won a $2.1 million U.S. Economic Development Administration grant to expand the system from 11 to over 18 miles, with connections to Oakland. More than 950 businesses are now within 200 meters of 10 gigabit fiber. One site, a future mixed-use development project, will help attract broadband-hungry office tenants. As for Dr. Kennedy? His business got the bandwidth it needed to stay in San Leandro. Danville, in south-central Virginia, suffered from the decline of tobacco and textiles. Unable to attract businesses without affordable fiber services, local leaders began a development program centered on advanced telecommunications infrastructure, technology education and workforce training, and targeted downtown revitalization projects. Today, companies that require sophisticated new technology are moving to Danville. The city became the second site globally for a nextgeneration Cray XMT supercomputer. IKEA chose Danville as the location for its first U.S. manufacturing facility in large part for its access to COMMUNITIES | www.bbcmag.com | FALL 2014 fiber. CBN, which produces all the driver’s licenses for Virginia, located in Danville in part because of the security of its fiber connections. Corrie Teague of Danville’s Office of Economic Development notes the network’s success in inducing technology companies to start up or move to the area, creating a positive spiral effect. “High-tech companies attract other technology companies,” says Teague. Chattanooga saw the same thing. It attracted as many as 2,400 jobs – at a new Volkswagen Passat factory and an Amazon distribution center, among others – because of its fiber-based broadband and the reliable power that its fiber-enabled smart electric grid guarantees. But perhaps even more important, its pioneering gigabit network is attracting a new generation of entrepreneurs and gaining a reputation as a place to start and grow businesses. Even companies based in Knoxville, 100 miles away, now look to Chattanooga when they want to expand. Powell, Wyo., is located 500 miles from the nearest metropolitan area and has more than 1,000 of its 5,500 residents below the poverty line. After it spent $4.9 million connecting each Auburn, Ind., retained key employers by providing fiber connectivity. home to a fiber optic network, Alpine Access, a contact-center outsourcer that uses home-based agents, opened a virtual call center there. Palm Coast, Fla., needed extra capacity for its communications network. In 2005, the city began connecting its 21 sites with a fiber network that would provide more bandwidth and reliability and cost less, too. By 2010, all but one site was connected. The city decided to offer its system to private businesses as well. It followed the model of Leesburg, Fla., which began installing fiber in 1987 and now serves county schools, Leesburg Regional Medical Center and area businesses. The business model is simple for Palm Coast – like San Leandro and many others, it rents access to providers of broadband service to businesses. By 2013, it had revenue of more than $500,000 a year, more than three times its expenses. Auburn, Ind., went with fiber in 2005 when Cooper Industries, a Fortune 200 company whose global data operations were located in Auburn, Ind., was at a crossroads – it had to either expand its Auburn facility or relocate. The company’s most critical requirement was for fast, resilient and reliable broadband. Auburn Essential Services, a municipal broadband provider, worked with Cooper to craft a businessclass broadband service and thereby preserve $7 million in annual payroll for the community. In addition, the city has retained a number of Internet-dependent, small but growing businesses. There are now hundreds of examples. When it comes to highways, the Information Highway is the one to be on, to attract and keep businesses. v FALL 2014 | www.bbcmag.com | BROADBAND COMMUNITIES | What Fiber Broadband Can Do For Your Community | 25 Builders, Real Estate Developers and FTTH M ost large developers of single-family homes and many developers of multiple-dwellingunit (MDU) communities add FTTH to new properties. Many are retrofitting older properties as well. By mid-2006, FTTH was economically viable in new developments with as few as 80 MDU living units or 100 single-family homes. That number has continued to fall based on improvements in deployment technology. FTTH adds value. Since the mid-2000s, the market research firm RVA LLC has surveyed home buyers and developers. Through boom, recession and recovery, surveys have noted that FTTH adds more than $5,000 to the price of a single-family home. The most recent survey indicates that fiber access adds between $5,000 and $6,000 to the value of a $300,000 home. RVA’s 2014 survey of MDU residents found that condo buyers were willing to pay a 3 percent premium for an FTTH connection, and renters would pay an 8 to 15 percent premium for FTTH. The reason fiber adds value is that subscribers are more likely to be very satisfied with their broadband and video services and much less likely to consider moving from their current homes. According to RVA’s most recent survey of MDU residents, good broadband is now the No. 1 amenity, beating out even in-unit washers and dryers. Q: How can I justify increasing my construction cost by adding fiber? A: First, don’t assume that fiber is more expensive to install than copper – that’s not necessarily the case. Second, homes sell for higher prices when they are wired for high bandwidth and provide access to fiber. And because demand 91% offaststudents Internet or broadband in their housing. 44% of students want cable TV. FTTH homes sell faster than non- FTTH homes in the same market, this may translate into a greater profit. This is even more important in bad times. When few homes are sold or rented, you can bet that homes with highbandwidth amenities sell faster. This is equally true for rental properties. Developers of MDU communities say their new buildings lease up faster if they can advertise them as fiber-connected. Q: Do buyers and renters really care about fiber to the home? How many of them have heard of it? A: They really care about fast, reliable broadband. Survey after survey shows that FTTH customers are more satisfied with their broadband and TV service than cable, DSL and wireless customers. Q: Do I need to hire an engineering firm to design the installation? A: Fiber does need to be engineered in large apartment complexes – that’s true for coax, too. But smaller installations do not need that kind of sophistication to work well. Greater standardization, clever new systems from equipment vendors, fiber that can be stapled and bent tightly around corners, distributors’ growing design expertise and an expanding corps of qualified technicians have made less formal design regimes feasible. Q: Will other labor on my construction site damage the fiber cable? A: Optical fiber is very, very thin – thinner than a human hair. But vendors have developed many techniques to protect fibers from harm. Cable can be armored to ward off cuts. Contractors can route inexpensive microduct – hollow plastic tubes typically 1/8 inch in diameter – through walls before the walls are closed in with drywall or other materials. The microducts are easily repairable. After everything else is completed, thin fiber can be “blown” through the microduct for hundreds of feet. New fiber can be bent almost like copper. Some vendors offer fiber in thin adhesive tape that can be rolled onto walls. Q: Do any building codes pertain to fiber? A: Yes, all the usual fire and life-safety issues apply. For instance, just as copper with PVC sheathing would be considered a life-safety hazard because of the combustion products released when it burns, so would various plastics used in fiber that is meant for outside installation. Indoors, look for Low Smoke Zero Halogen (LSZH) cables. If you are using thin plastic microduct, it should 26 | What Fiber Broadband Can Do For Your Community | BROADBAND COMMUNITIES | www.bbcmag.com | FALL 2014 $5,000-$6,000 Value that FTTH adds to a typical house or condo. Extra ROI (compared with cable) for adding FTTH to a rental property. 20% be labeled Halogen-Free Flame Retardant. You use a simple junction box to change from “outside” to “inside” wiring, just as you might with electrical cables. Of course, you should check with your local building code inspector. Aside from fire issues, codes may govern where fiber optical network terminals (ONTs – the boxes that convert pulses of light from the fiber into electrical signals for the computer or TV) may be placed on the outside walls or in common areas. A few municipalities specify where network connections should be placed in homes. Q: Where should we put users’ network connections, assuming no specific building code or guidance document covers that subject? A: Expect users to desire broadband connections in virtually any room in the house – bedrooms, office-dens, the kitchen. That’s because Internet connections these days accommodate telephones, televisions, set-top boxes, digital picture frames, security sensors, fire and smoke monitors and, of course, computers. As the “Internet of things” develops, more appliances will be Internet-enabled. Many manufacturers already provide such connectivity. To minimize wireless interference inside multifamily buildings, experts often advise using wired Ethernet connections for all stationary IP-connected devices. Portable consumer electronics devices, such as smartphones and tablets, usually communicate with the Internet via Wi-Fi – as do appliances (manufacturers have adopted a standard for building Wi-Fi into major appliances), so you also need a wireless gateway. Such gateways are offered by all network equipment vendors as standard-issue to be used on the home side of fiber network deployments. Q: In single-family homes, I often see ONT boxes – the fiber terminals – hung on the outside walls. Can they also be placed indoors? A: Yes. In harsh climates, where heat or heavy snow could affect the outside installation, you will probably want to $81 Monthly rental premium that FTTH adds to a $1,000 apartment. put ONTs indoors. Outdoor ONT models are sometimes placed in garages or utility rooms; you can also buy small, portable indoor models that look more like cable or DSL modems and connect them with tough, flexible fiber that can be laid anywhere. Indoor ONTs, which are popular with apartment dwellers, are sometimes designed to be user-installed. Most are not much bigger than a cellphone. Q: Why do ONTs sometimes require backup batteries? A: Optical fiber cannot conduct electricity. Thus, to keep a network connection running during a power outage, you need a battery at the user premises or a fiber cable that includes a thin copper conductor connected to an off-site battery. This requirement is changing as cellular phones replace landlines – a change that has already taken place in most of Europe. In North America, where about three of five households still have landlines, many standard designs are available for in-wall, between-stud boxes that hold the battery, ONT and fiber connections. Q: Does every dwelling unit or office need its own ONT located at the unit? A: No. Separate ONTs for each unit in an MDU building can be located centrally, often in a basement or an equipment cabinet. There are also ONTs designed to serve multiple units, typically four or eight. This flexibility is made possible by small, low-power circuitry and by the fact that some ONTs can deliver 1 Gbps or more – often enough bandwidth to share among multiple customers. Q: Is lightning a problem with fiber? A: No. Because fiber does not conduct electricity, lightning strikes do not directly affect fiber at all. Q: Is FTTH a sustainable technology? A: FTTH generally consumes less power than other broadband technologies. Passive optical networks (GPON and EPON) are especially energy-efficient because they require little or no active electronics in the field. FTTH enables more sustainable lifestyles, too. A 2008 study by PricewaterhouseCoopers showed that the greenhouse gas emissions associated with deploying an FTTH network are outweighed within five years by the savings from increased telecommuting. Other fiberenabled applications, such as telehealth, telepresence, distance learning and cloud computing – and, of course, smart-grid applications and home energy management – reduce travel, minimize heating and cooling loads or help shift energy consumption to renewable sources. v FALL 2014 | www.bbcmag.com | BROADBAND COMMUNITIES | What Fiber Broadband Can Do For Your Community | 27 Property Developers Win With Fiber F or a collection of articles on properties that have deployed fiber to the building or fiber to the unit, , see www.bbpmag.com/property/Property_Land.php. There you will find details of the precise technologies used at three dozen properties in all property sectors and in all regions of the U.S. Here are two recent examples. ATLANTA CONDO TAKES DO-IT-YOURSELF APPROACH The Brookwood, a 219-unit high-rise condominium in Atlanta’s ultra-chic Buckhead neighborhood, now has an attractive, low-cost amenity for condo owners as well as cost savings for the management office. When homeowners took over management of the community from the developer, one of their top priorities was to improve broadband services and provide the fastest Internet speeds in Atlanta to all residents. They succeeded: Today, every resident of The Brookwood can get 50 Mbps symmetrical Internet access for only $22 a month. Atlanta’s Brookwood condo installed its own fiber backbone. Fiber-based broadband adds cachet – and value – to multipledwelling-unit properties. Communities with fast Internet speeds are appealing to buyers. After reviewing proposals from several traditional providers, the association decided to take matters into its own hands. At the recommendation of Clara Sorrells of FirstService Residential, the property’s management company, it hired Broadband Planning, an Atlanta-based consulting firm that represents both owners and condominium associations in negotiating broadband services. Richard Price, owner of Broadband Planning, explains, “Technology is rapidly changing, and property managers and community boards of directors need to know all the options available for their communities before getting locked into long contracts with cable providers. Communities with fast Internet speeds and the ability to have choice for cable providers are going to be more appealing to potential buyers.” The Brookwood Residential Condominium Association created a committee, led by a resident and telecommunications professional, Karen Angellatta-Wheeler, to work with Broadband Planning and search out high-quality companies that could help the condo association accomplish its goal. After a yearlong search, the association made a bold move: It decided to build an Ethernet data network in the building, using the telephone wires that already served each unit along with commercial-grade Ethernet electronics and a 10 Gbps network backbone. The system is powered by a whopping 500 Mbps data circuit, which can be upgraded to 1 Gbps or more with only a week’s notice to keep the building on the cutting edge. The Brookwood’s bandwidth pipe is even larger than that of nearby Georgia Tech, and it serves a much smaller constituency. Because it was a modification of the existing infrastructure, the new system was implemented without major cost. This solution gave all residents 50 Mbps upstream and downstream – a service that was not previously available to residential users in this area – at a cost of only $22 per month. There’s access to a dedicated customer service line that dispatches technicians 24 hours a day. 28 | What Fiber Broadband Can Do For Your Community | BROADBAND COMMUNITIES | www.bbcmag.com | FALL 2014 The Ritecom Group, a wellestablished local commercial broadband and fiber optic contractor, provided the design, network equipment and commercial-grade customer service for an all-inclusive monthly fee. The Ritecom equipment and services and the separately contracted commercialgrade circuit are the association’s only two expenses. The association uses the excess bandwidth for management office telephones and other low-voltage monitoring, cutting its management office monthly expense from more than $1,500 to $250. GIGABIT TO STUDENTS IN AUSTIN Callaway House, a new student housing community, offers 1 Gbps Internet service. Austin, home to the University Callaway House was the first student housing in Austin to offer gigabit Internet access. of Texas and a thriving high-tech industry, is a lucky city. Google Fiber is building a gigabit network there. AT&T launched its GigaPower service innovation – and second, entry costs were relatively low there. But several hundred exceptionally lucky University of because Austin’s fiber infrastructure is abundant. (This is one Texas freshmen didn’t have to wait for the completion of these reason Google chose Austin for a citywide gigabit network, de large-scale projects: Their off-campus residence hall opened in Cardenas points out.) August 2013 with unrestricted 1 Gbps connectivity to both the ACC turned to CampusConnect, an Austin ISP that had Internet and the university network. both student-housing expertise and available fiber, to design American Campus Communities (ACC), the property and build the network. “We wanted to try it out to see what owner, is well aware of broadband’s importance to student kind of impact it would have,” de Cardenas says. housing. When ACC conducts surveys in the 191 studentACC is already looking for additional markets where housing properties it owns or manages, residents always rank gigabit networks might be feasible. At the same time, it is Internet access high on the list of amenities. After all, students tracking the experience of Callaway House residents to find tend to own multiple connected devices and to be heavy users out how students use the bandwidth available to them and of bandwidth for both schoolwork and entertainment. In whether an outstanding technology amenity will become a addition to taking online courses, they carry iPads to class, buy driving factor in the selection of an apartment. e-textbooks, participate in Skype study groups and post their ACC wasn’t sure what students would do with their homework to online services such as Blackboard. “Broadband gigabit access, other than taking online classes (yes, more is not a reason for them to pick a property, but it’s a reason for than one of 10 courses taken by students on U.S. campuses them to leave if it’s poor,” explains Jorge de Cardenas, ACC’s are online, despite the proximity of classrooms) and relaxing senior vice president and chief technology officer. with Netflix movies on the weekend. But that was not a When ACC planned The Callaway House, it saw a good problem. De Cardenas says, “We’re removing the barriers to opportunity to take a “significant step up” in bandwidth students’ doing things we don’t even know about yet. We’re creating an environment that’s conducive to academics, to delivery, according to de Cardenas. First, the market was right innovation, to all kinds of new things.” v – the University of Texas has a strong focus on technology FALL 2014 | www.bbcmag.com | BROADBAND COMMUNITIES | What Fiber Broadband Can Do For Your Community | 29 THE FIBER-TO-THE-HOME PRIMER helps the whole world understand the benefits of fiber networks “The Primer is an excellent way to not only educate people about the basics of FTTH but also inform them of its many benefits.” —Mark Erickson City Administrator and Economic Development Director - Winthrop, Minn. Printed FTTH primers are helping thousands in communities get on the same page about the benefits of fiber networks. Community leaders and fiber champions are launching mailing campaigns to send FTTH primers to every household and business. Get more information or place your request for a bulk shipment of printed primers for your community at: www.FTTHPrimer.com 877-588-1649 Build Community Support Besides the primer, mailing packets include brochures, questionnaires and schedules of public meetings about fiber networks. FTTH marketing campaigns use volunteers, both adults and children, to reach every household and business in a project area. A R E G I S T R AT I O N NOW OPEN BROADBAND COMMUNITIES • 2015 SUMMIT AUSTIN APRIL 14 – 16, 2015 Renaissance Hotel – Austin www.bbcmag.com | 877-588-1649 The FTTH Council is here to serve you. Grow your Business Become a Fiber Community Know the Latest Technology Network and Access Customers fibernfire Join our 300+ membership of network operators, manufacturers, consultants, municipalities and others interested in promoting the benefits of all-fiber networks. For more information and to join, visit www.ftthcouncil.org ECONOMIC DEVELOPMENT The Responsive City: Chicago One of Chicago’s first digital-organizing successes was a system that maps and reports dangerous building conditions in the southwestern part of the city. By Stephen Goldsmith and Susan Crawford / Harvard University D aniel O’Neil wants to use digital tools to give a voice to people who aren’t on traditional city government’s map. “If you’re not in the network, you’re invisible,” he says. “You don’t matter. And everybody matters. Which means they have to be in the network. And not just on the Internet. But meaningfully. And not just meaningfully, but looking at meaningful things.” Spiky-haired and fearless, O’Neil, who cannot resist cracking wise about any and all things, runs the Smart Chicago Collaborative. It’s a civic organization founded jointly by the city of Chicago, the MacArthur Foundation, and the Chicago Community Trust and devoted to improving lives in Chicago through technology. The collaborative’s work revolves around three goals: increasing Internet access, improving technology skills and expanding the innovative use of data to improve lives. Smart Chicago works toward these goals through administering programs and funds sponsored by its public and philanthropic parent organizations. One standout initiative is Connect Chicago, a program that unified and expanded a network of more than 250 places that offer free computer use. Through administering federal Broadband Technology Opportunities Program funds, Smart Chicago upgraded computers and facilities and managed rollouts of computer training courses citywide. With more than 250 locations – 195 of which offer training – the program has made progress in bridging the digital divide. Another program, #CivicSummer, teaches teens how to use digital tools and become proficient in technology, media and civic innovation. As executive director, O’Neil isn’t shy about sharing Smart Chicago’s mission and philosophy. “More than anything, we’re about being open and inclusive to everyone in Chicago and beyond,” he says. “While we support organizations that help people through technology, we’re not primarily funders. We’re workers. We’re practitioners. We’re conveners.” Smart Chicago was the driving force behind one of Chicago’s first digital-organizing successes. With its partners – a community group, the Southwest Organizing Project (SWOP), and a new startup, LocalData – Smart Chicago devised a digital system that maps and reports dangerous conditions in buildings in Southwest Chicago in order to increase the city’s attention to their need to be renovated. That creates new housing in the revitalizing neighborhood, replacing dilapidated buildings with homes suitable for families. SWOP had been doing something similar, the oldfashioned way, since it was started in 1996 to “enable families to exercise common values, determine their own future and connect with each other to improve life in their neighborhoods.” SWOP members would walk around Southwest Chicago with pen and paper, making notes about vacant and abandoned buildings. Later, they would enter the data into an Excel spreadsheet, and then they’d use Microsoft Planner to put the information on maps to show it to other members. All in all, it was a pretty clunky system. What brought the project into the digital age was the work of LocalData, a civic startup supported by the Knight Foundation and Code for America. LocalData created a mobile app to allow community organizers to gather and organize neighborhood data and display them visually, using Chicago’s already existing geodata. SWOP, O’Neil’s team realized, could use this app to digitize its processes for tracking neglected properties. LocalData gave Smart Chicago a license to provide its software to SWOP – and made sure that SWOP would have technical support, unlimited hosted data and the ability to allow an unlimited number of app users. Gone was the era of paper notes and sitting later at a desk, navigating multiple pieces of software. Now, SWOP members simply use their phones to take pictures of problem buildings, automatically associate those pictures with their geocoded locations and export the data in a form that can be forwarded to Chicago’s 311 system. When they see a dangerous building where dumping has occurred or windows have been broken, they can flag the place, answer all the questions that 311 needs to route the service request and know that this information is going in real time to the city. v Stephen Goldsmith is the Daniel Paul Professor of Government and director of the Innovations in American Government Program at Harvard University’s Kennedy School of Government. Susan Crawford is the John A. Reilly Visiting Professor in Intellectual Property at the Harvard Law School and a co-director of the Berkman Center. This article is excerpted from their 2014 book, “The Responsive City: Engaging Communities Through Data-Smart Governance.” Did you like this article? Subscribe here! NOVEMBER/DECEMBER 2014 | www.broadbandcommunities.com | BROADBAND COMMUNITIES | 71 ECONOMIC DEVELOPMENT Smart Cities and Broadband The smart-city movement is a new approach to making cities more livable, sustainable and competitive. Smart-city applications depend on broadband infrastructure, so broadband advocates need to get involved in the planning process. By Kathleen McMahon / Applied Communications U rban areas are undergoing a transformation from industrial centers to smart cities. Although various definitions of smart cities exist – some focus on futuristic applications, others on integrated systems that lead to a smarter use of resources – common elements include the use of information technology and broadband to promote innovations that result in more sustainable, economically competitive and livable cities. In addition to the technology components, human and social concerns are important elements of the dialogue. In the long history of human settlements, the smart city is a relatively new phenomenon. It raises a novel set of issues that city planners, engineers and public officials must address. Municipal leaders are just beginning to engage in policy discussions regarding the implications of these new technologies. The American Planning Association (APA), a professional organization for city planners that has more than 30,000 members nationwide, is at the forefront of this dialogue. APA recognizes that professional planners are uniquely qualified to provide leadership in defining, analyzing and debating the issues of sustainability, inclusion and integration of place-based strategies in the broader discussion of smart cities. To facilitate this discussion, the APA created a Smart Cities and Sustainability Task Force whose mission is to “address advances in technology and innovation to Don’t miss Kathleen McMahon’s workshop on planning and broadband at the Broadband Communities Summit in Austin, April 14–16. cultivate cities which are smarter, more resilient and sustainable.” SMART-CITY COMPONENTS The first generation of smart-city technologies, just recently adopted, represents a wide range of applications. Innovations are being introduced at a dizzying pace. A sampling of these applications includes • smart devices and sensors embedded in roadways, power grids, buildings and other assets to provide data that can be used to design more efficient and integrated urban systems • smart communications systems that use wired and wireless technologies for realtime monitoring of utilities, buildings and infrastructure systems and for remote operations that automatically adjust systems to environmental factors 72 | BROADBAND COMMUNITIES | www.broadbandcommunities.com | NOVEMBER/DECEMBER 2014 • smart software to create valuable information for researchers and provide digitally enhanced services to empower and engage communities. As a framework for discussion and research about the multifaceted concept of the smart city, the APA Task Force identified five components of the smartcity movement. Infrastructure Implementing smartcity technologies requires a robust, reliable, affordable broadband network. Broadband infrastructure components include fiber optic cables, wireless networks, sensors, data centers, gigapops (network access points that support data transfer rates of at least 1 Gbps) and other facilities. Cities need to assess the capacity of their networks and work with private and public partners to proactively ensure that their broadband infrastructures are adequate to meet current and future needs. Big Data applications Data collected by governments, private companies and others is a key component of planning. Big Data refers to extremely large data sets collected in real time by public agencies or private corporations. City planning applications of Big Data include • visualizing citizen reports of issues and city services requests • modeling transportation and water systems • analyzing urban impacts on ecosystems • predicting commuter behavior and crime patterns • engaging citizens in public decisions through social media, crowdsourcing and other technologies. Although these applications have great potential to improve city services, cities must grapple with such issues as privacy, cybersecurity, model reliability, government accountability and priorities for technology investments as they adopt these new technologies. Wired and wireless communications systems, smart sensors and analytical software are all necessary for smart-city applications. Together, these components can support systems that adjust to environmental factors. Sustainability, resiliency and energy A sustainable planet requires urban systems that are compatible with natural systems. This demands innovative solutions to designing infrastructure, managing waste and monitoring natural resources. Cities are already starting to adopt new approaches, such as smart grids, telemetry and intelligent transportation systems, that often rely on broadband networks. Increasingly, broadband technology will underlie city plans that are designed to mitigate urban impacts on the environment. As broadband technology becomes more integrated into the fabric of urban areas, planners must unlock its potential for sustainable applications. Equity and the digital divide As communities increase their reliance on new technologies, municipal officials must make certain that groups with different incomes, different ages and different cultural backgrounds have the same opportunities to access these technologies. Broadband must be available and affordable for all households, and people must have the skills to adopt and use smart-city applications. Broadband access across neighboring states, jurisdictions and school districts must also be equitable. Planners’ roles Planners are in a position to advocate for broadband as a critical infrastructure. They have the skills to conduct visioning processes, communicate with public officials and identify collaborative strategies. The APA recommends, “Planners will need to become aware of the importance of planning for broadband infrastructure. In order to incorporate broadband strategies into local plans, they need familiarity with how various technologies operate. Understanding broadband applications is essential to working with telecommunications experts that are designing wireless, fiber and cable networks.” BROADBAND COMMUNITIES AND SMART CITIES On September 16, 2014, at the Broadband Communities economic development conference, the APA Smart City Task Force sponsored a breakfast forum to gather input from the broadband community about the potential for smart-city technologies and the obstacles to adopting them. This interactive forum asked three questions: 1 Which additional topics related to smart cities should the task force consider? 2 What are the most significant challenges to adopting smart-city technologies? 3 Which smart-city innovations and methods are you aware of in your community, and which of them could other communities adopt? The discussion centered on the challenge of getting city departments and public agencies to work outside their normal silos and develop a cooperative approach to instituting smart-city technologies. Participants noted that more benefits will accrue NOVEMBER/DECEMBER 2014 | www.broadbandcommunities.com | BROADBAND COMMUNITIES | 73 ECONOMIC DEVELOPMENT “You can’t have smart cities with dumb infrastructure. “ – Participant at the Smart City Task Force forum, Broadband Communities economic development conference, September 2014 when smart-city technologies are instituted through partnerships and collaborations that increase the ability to pool resources and avoid duplication of effort. Finding cost efficiencies through joint initiatives can be an important strategy to address the concerns raised about funding investments in smart-city technologies. Other attendees at the breakfast forum remarked on the need to overcome public mistrust of government use of smart technologies and on the lack of technical skills to deploy and operate smart systems. Not surprisingly, several people brought up the lack of adequate broadband infrastructure to support technologies. As one individual commented, “You can’t have smart cities with dumb infrastructure.” NEXT STEPS The APA Task Force is conducting a survey of its members to collect more information about smart-city practices and will present the findings at the APA national conference in the spring and at the Broadband Communities Summit in April. This will be a start of an ongoing dialogue to share best practices, research and innovations. This dialogue should include the broadband community. The APA Smart City Task Force is compiling a list of interested parties who would like updates on the smart-city initiatives, including opportunities to participate in webinars and other forums. If you are interested in being added to this list, please send an email to me at [email protected]. v Kathleen McMahon is a founding partner of Applied Communications, a Montana-based consulting firm that provides land-use planning, broadband planning and strategic planning for towns and community organizations. You can contact her at [email protected]. Did you 2014 like this article? Subscribe here! 74 | BROADBAND COMMUNITIES | www.broadbandcommunities.com | NOVEMBER/DECEMBER chnology Provid U Te ers MD ® – ISSUE – COMPANIES TO WATCH Style Meets Function • Removable Wire Chase Solution Conceals… fiber-optic, home theater, audio, video and security hardwire cabling. NO mitering... nails... glue... putty. Snap-on, Snap-off Access An Aesthetically Pleasing Wire Management System proudly made in the u.s.a. www.crownduit.com ECONOMIC DEVELOPMENT The Stratford Story A small city in Ontario, Canada, punches above its weight in the national economy. Much of its success comes from intelligent use of world-class broadband. By Robert Bell, John Jung and Louis Zacharilla / Intelligent Community Forum “T ake an extra $25. New York is an expensive place.” Those words of wisdom came from the city council of Stratford, Ontario, Canada, in 1952. A prominent citizen, journalist Tom Patterson, had come before the council with a proposal. Patterson wanted to travel, at the council’s expense, to New York City to convince legendary British director Tyrone Guthrie to come to his city and found a summer Shakespeare Festival in the park. Who could resist attending Shakespeare in the park on the banks of the Avon River in a town called Stratford? Those were hard times in Stratford. Its prosperity had been built on agriculture and on serving as a repair depot for the steam engines of the Canadian National (CN) railway. Agriculture was still going strong – though employing fewer people every year – but a decision by CN management had centralized repair services somewhere else on the line. No idea promoting the community’s survival was too crazy to consider. So, on January 22, the council signed off on Patterson’s brainstorm, giving him $25 more than he had originally requested for the trip. Patterson did meet with Guthrie – more than once, as a matter of fact, which required more $125 disbursements. By July of the following year, the Stratford Shakespeare Festival, under artistic director Guthrie, presented its inaugural production of “Richard III,” starring Alec Guinness, under a massive tent in the park. Cultural tourism became a new industry in Stratford. It was a homegrown economic development solution and the first sign of a new innovation ecosystem in the making. But six decades would pass before the next sign appeared. During that time, the festival thrived. By 2010, it was the largest employer in the city and generated C$135 million in local economic activity and C$70 million in tax revenue for all levels of government. Stratford grew with it, reaching a population of 32,000. However, the festival, restaurants and lodging were seasonal businesses that brought prosperity only four months of the year. 76 | BROADBAND COMMUNITIES | www.broadbandcommunities.com | NOVEMBER/DECEMBER 2014 Stratford is a scenic community of 32,000 located in Ontario, Canada. A BROADBAND ECONOMY In 2003, the people of Stratford elected Dan Mathieson mayor. He was a young, entrepreneurial businessman with deep roots in the city, and he set out to change the way Stratford did business. His first priority was to embrace high-speed broadband connectivity and take it to new heights. He believed that broadband needed to be treated as basic infrastructure, not a luxury amenity. As he told The Globe and Mail in August 2013, “In the future economy, the data that flows across those networks is going to become part of everyday life, if it hasn’t already. If you can’t entice commercial entities to do it, then government should look at how they can play a role in advancing public broadband.” His vision led to a series of strategic choices. Like many rural cities, Stratford owned its own municipal electric utility. In the 1990s, the utility laid optical fiber along its rights-of-way to provide communications capacity for lease to large industrial customers. Early in his tenure, Mayor Mathieson faced pressure from Ontario province to privatize the utility in the name of efficiency. His council chose a different path. It spun the utility off into a pair of private companies with the city as sole shareholder: a hydro company to own and operate the electrical system NOVEMBER/DECEMBER 2014 | www.broadbandcommunities.com | BROADBAND COMMUNITIES | 77 ECONOMIC DEVELOPMENT The fiber network that Stratford’s municipal utility built has attracted external business investment and helped the local tourist industry market itself across North America. and a services company to become a data utility that operated the dark fiber. By 2012, the services company had grown its network to 37 miles and introduced 1 Gbps connections to 125 locations, including city facilities and schools. The network also served as the backbone of a 300-node Wi-Fi network, which the hydro company used to roll out a smart-meter program to 18,000 customers. Mayor Mathieson and his team were creating a new innovation ecosystem that was built on homegrown talent but proved equally attractive to external investment. Today, Stratford is leveraging that ecosystem to transform its economy. The fiber network proved pivotal in attracting external investment from the Royal Bank of Canada, which built a national data center in the area. The city-owned utility signed an agreement with a private carrier to provide retail triple-play services over its network and extend fiber to premises throughout the city. The network has already enabled the Stratford Shakespeare Festival to significantly improve its Web-based services and expand online marketing across North America. The city council and the local business community created the Stratford Tourism Alliance, which launched online and traditional advertising campaigns to make Stratford a destination for foodies and cultural tourists. In its first year, the Web traffic grew 200 percent while Ontario Tourism’s traffic fell 18 percent in response to recession. More than half of all leisure travelers carry smartphones, and the Alliance introduced a mobile site in 2010 and mobile versions of its “Savor Stratford” foodies and festival campaigns. Apps for the iPhone, iPad, Android and BlackBerry that followed in 2011 provided everything from reservations for hotels and restaurants to schedules of events and augmented reality. A set of walking tours of Stratford’s many heritage buildings uses signs with QR codes to play two- to three-minute audio clips describing the history of each location. Online, the many individual private businesses of Stratford’s tourism industry were now acting as one, with all the advantages of scale usually enjoyed by much bigger companies. With each addition to Stratford’s ecosystem, the city’s attractiveness to innovators has increased. The mayor’s team has successfully sold Stratford as a test bed for technology projects – a city large enough to give new technologies a meaningful test but easy to operate in because of its small size. Toshiba, Cisco, BlackBerry, Inter-Op Canada and Clemson University all have pilots running in Stratford. These international brand names lend validation to a strategy that has proven its value to the city. During the financial crisis, the near crash of the North American auto industry pushed unemployment in Stratford to record highs as the city lost 1,600 mostly low-skilled jobs in manufacturing. During the same period, the city gained 700 high-paying jobs requiring ICT skills and within three years found itself managing a new problem: a labor shortage. THE STRATFORD TRIANGLE Stratford has a reputation for two other attributes that distinguish intelligent communities: vision and a pronounced talent for making a deal. Deciding that little Stratford needed the same kind of government-business-education innovation triangle as much bigger places, Mathieson and the city council set out to build one nearly from scratch. The biggest gap in the Stratford triangle was education: It is tough to have a university-business-government alliance without a university. However, less than an hour down the road was a place called Waterloo, ICF’s 2007 Intelligent Community of the Year and home to the University of Waterloo (UW). Today, it has Canada’s largest engineering faculty and the world’s largest postsecondary cooperative education program; its graduates have founded companies that include BlackBerry and OpenText. Stratford wanted some of that entrepreneurial energy, and, as it turned out, the university wanted something that Stratford had. UW was interested in expanding its digital media offerings with a focus on how these fastchanging technologies would transform business and industry. Stratford had its Shakespeare Festival – an enterprise that generated large volumes of high-quality content, considered itself to be in the education as well as the entertainment business and welcomed the idea of involving students in extending its reach into the digital realm. Several years went into assembling the components of a deal. The city committed to investing C$10 million to revitalize part of an abandoned industrial site in its downtown core. The province of Ontario matched that investment, as did OpenText, and the federal government added C$5 million. The new building opened in October 2012 to 98 undergraduate and 19 graduate students working in state-ofthe-art digital media labs for graphic design, animation, Web development and audio and video editing. Two-thirds of the students were Canadian, and the remainder came from around the world. The Bachelor of Global Business and Digital Arts is a four-year undergraduate program that emphasizes project-oriented learning in partnership with private companies and outside institutions. Students work in project teams that mix artists, business majors and engineers. Every student graduating from the program leaves UW Stratford 78 | BROADBAND COMMUNITIES | www.broadbandcommunities.com | NOVEMBER/DECEMBER 2014 as a certified project manager. The city lost no time pursuing economic benefit from the new campus. By January 2013, UW Stratford and the local school district announced the School Within a University program, which will bring universitybound secondary school students to campus for technology training and participation in projects. Just before UW Stratford ended its first school year, the Stratford Accelerator opened in a nearby building to provide a local home for digital media startups. The digital media focus spread downward as well as outward. At Stratford Central High School, enrollment in the digital media and information technology majors is growing fast. In 2011, a digital media instructor organized the DIGIs, Canada’s first national digital media awards for secondary school students. Dylan Woodley, one of Central High’s students, saw his animation “Pancake Island” go viral on the Web and receive national and U.S. media attention. Another of Woodley’s videos was featured on the website of the band Coldplay. Stratford is also the center of a fourhospital regional partnership called the Huron-Perth Healthcare Alliance. Its fiber network connects 85 percent of the physician groups and family doctors in the Stratford area. The network allows centralized laboratories and specialized care units to serve a widely dispersed set of hospitals, clinics and medical practices, which saves time and money while delivering the highest possible quality of care to a largely rural area. Stratford General Hospital currently conducts 70,000 tests per year for patients in surrounding counties. Lab results are turned around in hours and delivered by twice-daily courier or, for connected facilities, via broadband. The interpretation of medical images is likewise centralized, so four radiologists at the hospital can serve the entire region – with another radiologist in Austria available for off-hours service. Telemedicine projects include service for mental and emotional conditions that would otherwise need hospitalization. Staff visit clients through a high-quality videoconference to check on their states of mind, ensure they are taking medications and consult on their issues. Client response is overwhelmingly positive: Clients see the videoconference terminal not as Big Brother invading their homes but as a tangible sign they are being cared for. Caregivers are equally enthusiastic because eliminating travel time means they can spend more time with clients. Stratford attacked all three disadvantages of its rural location. A strong online and traditional marketing campaign reaches across distance to attract cultural tourists from eastern Canada and the U.S. and deploys the interactivity of social media to foster relationships and keep potential tourists connected to Stratford’s cultural calendar. Within the community, social media apps effectively turn many disparate small businesses into a unified whole in terms of customer marketing. A cultural brand that spans theater, food, history and art projects the charisma that Stratford needs to be a destination not only for tourists but for both companies and employees. And health care networking within the greater Stratford region creates the kind of social infrastructure that only dense urban areas are supposed to be able to afford. All have played their part in making Stratford a rural success story. v This article, published with permission from the Intelligent Community Forum, is an excerpt from the 2014 book “Brain Gain: How Innovative Cities Create Job Growth in an Age of Disruption.” Robert Bell, John Jung and Louis Zacharilla are the three co-founders of the Intelligent Community Forum of New York. For more information, see www.BrainGainBook.com and www. intelligentcommunity.org. The Leading Conference on Broadband Technologies and Services Broadband Communities Magazine s e t a l u t a r g n Co For becoming the sponsor of the Wednesday Exhibit Hall Reception at the 2015 Broadband Communities Summit. For more information on Comcast, visit www.comcast.com/xfinitycommunities. You are cordially invited to come see Comcast at the upcoming To Exhibit or Sponsor contact: Irene G. Prescott [email protected] | 505-867-3299 877-588-1649 | www.bbcmag.com Did you like this article? Subscribe here! NOVEMBER/DECEMBER 2014 | www.broadbandcommunities.com | BROADBAND COMMUNITIES | 79 Announcing A new organization . . . Mission stateMent The Coalition for Local Internet Choice – CLIC – represents a wide range of public and private interests who support the authority of local communities to make the broadband Internet choices that are essential for economic competitiveness, democratic discourse, and quality of life in the 21st century. board of advisors Charles Benton Chairman Benton Foundation Blair Levin Executive Director, Gig.U Edyael Casaperalta Programs and Research Associate, Center for Rural Strategies Vint Cerf Chief Internet Evangelist, Google Inc. Sharon Gillett Principal Strategist, Technology Policy, Microsoft Christopher Libertelli Vice President, Global Public Policy, Netflix Matthew Rantanen Director of Technology, Southern California Tribal Chairmen’s Association (SCTCA) Gail Roper CIO & Community Relations Officer, City Of Raleigh, NC Lev Gonick CEO, OneCommunity Maria Alvarez Stroud Director, Broadband & E-Commerce Education Center, University Of Wisconsin Brett Kilbourne Vice President, Government and Industry Affairs and Deputy General Counsel, UTC Desmarie Waterhouse Director of Government Relations & Counsel, American Public Power Association www.localnetchoice.org principles ThE InTERnET IS ESSEnTIAL 21ST CEnTuRy InfRASTRuCTuRE: Modern broadband Internet networks are essential infrastructure in the 21st century economy. Access to modern broadband infrastructure is vital in ensuring that all communities – rural, tribal, and urban – can access opportunity and participate fully in community life. LoCAL CoMMunITIES ARE ThE LIfEBLooD of AMERICA: America is built on its great communities. Towns, counties, and cities are where economic activity and civic engagement live — and communities recognize modern broadband Internet infrastructure as essential to enable such economic and democratic activity. CoMMunITIES MuST BE ABLE To MAKE ThEIR oWn ChoICES: Local choice enables local self-reliance and accountability. Local choice enables local innovation, investment, and competition. Local communities, through their elected officials, must have the right and opportunity to choose for themselves the best broadband Internet infrastructure for their businesses, institutions, and residents. Federal broadband policies must prioritize local choice and provide local communities full, unhindered authority to choose their own broadband future. . . . To Advocate for Local Internet Choice leadership Jim Baller, President | [email protected] Joanne hovis, CEo | [email protected] Chris Mitchell, Senior Advisor | [email protected] Catharine Rice, Project Director | [email protected] please join us Coalition for Local Internet Choice 2014 P Street, NW | Washington, DC 20036 | www.localnetchoice.org www.localnetchoice.org ECONOMIC DEVELOPMENT The Challenge of Mass Innovation For the majority of people, broadband’s economic benefits may depend more on usability and usefulness than on bandwidth. By Frank Odasz / Lone Eagle Consulting T ime is the most finite resource of all. People are willing to pay for services that save time instead of wasting it. But for low-income populations, a super-fast broadband network may not save as much time as a slower but smarter “public benefits network.” Gigacities have not yet had much economic impact on low-income populations, and few digital inclusion programs offer scalable solutions to help average folks learn to earn online. Stimulating high-tech startups hasn’t proven to create large numbers of jobs, and the jobs created will likely be only for those with high-level technical skills. Connecting the unemployed online to the local job service isn’t much of an innovation when it means ignoring or missing booming opportunities for entrylevel digital entrepreneurship. Can broadband be a solution for low-income Americans? Maybe low-tech, high-imagination jobs that proliferate in large numbers from the bottom up can outperform the top-down, hightech efforts. MOBILE LEARNING The most scalable educational solution is distance learning, especially if it is delivered on mobile devices. As of 2014, more online purchasing is done via mobile devices than via PCs. Mobile devices outsell PCs four to one. Pundits are predicting the death of the PC. Mobile devices are quickly becoming smaller, faster, increasingly integrated, interconnected, more powerful and essential to daily functionality. Apple has more than a million apps, and in 2012, it paid $12 billion in commissions to Don’t miss Frank Odasz’s session in the rural broadband track Broadband Communities Summit in Austin, April 14–16. third-party app developers. New forms of entrylevel digital entrepreneurship are popping up all over. Anyone can become a developer and create apps without learning to code, publish e-books without a publisher and much more. Creating and maintaining free websites via iPhones and iPads is now possible, enabling ever-easier “create and share” community capacity-building opportunities. For several years, 2 billion people have had Internet access – so that many of those with a bent toward self-directed learning and innovative entrepreneurship have already created a global boom in innovations, learning continually from one another globally and giving the rest of us the opportunity to use, copy, modify, mash up or morph their innovations into something new. New microsatellites and other technologies will help get the remaining 5 billion online within five to 10 years. The smartphone applications booming in Africa already provide insights into what kinds 82 | BROADBAND COMMUNITIES | www.broadbandcommunities.com | NOVEMBER/DECEMBER 2014 of solutions are most scalable globally. For example, a low-cost mobile money transfer application is providing the first banking service available to most Kenyans. According to The Economist, the application has increased Kenya’s GDP by as much as 25 percent. However, best practices for keeping everyone up to the same level of progress are missing, and elected leaders often make decisions about how economic development is likely to occur without knowledge of what have already proven to be inevitable major trends. Topdown policy makers have to learn to partner meaningfully with bottom-up innovators and pay close attention to what citizens are proving as the best solutions for utilization. Social media marketing outperforms other forms of e-marketing, and scalable entrepreneurship innovations demonstrate that the “sharing economy” – now up to $100 billion per year – is something to take seriously. Airbnb. com allows anyone with a spare couch to instantly open a bed and breakfast in any of 190 countries. Uber.com and Lyft.com allow anyone with a vehicle to become a taxi driver, all mediated with secure transactions from smartphones. And then there is the emerging “Caring Economy” cited by Google’s CEO. Twenty-eight percent of new jobs are expected to be in the health care industry, and new health monitoring apps for the booming senior population offer opportunities to reduce the trillions of dollars in overspending on health care. The Alaska Native tradition of creative adaptation is alive and well in the village of Metlakatla, on Annette Island, Alaska, as Tsimshian youth, even in elementary grades, are learning to innovate with robotics, drones, 2D/3D printers, e-publishing and digital entrepreneurship. Although their community is growing, most of the 65 southwestern Alaska villages with ARRA-funded microwave broadband (GCI’s TERRA Project) continue to suffer from youth out-migration because no one has yet stepped up to provide the vision and solutions for their creative adaptation. However, in Metlakatla, the NTIA/ Connect Alaska/SBI Innovation Incubator project is preparing the youth to launch a global MOOC (massive open online course). They are learning to teach the world how Alaska Native values of generosity and trusted mutual support have come full circle, aided by powerful new tools for sharing, and are now being continually reinvented by digital Natives of all ages. The Annette Island School District has quietly become a model for all Native and rural school districts. In another project, the Cook Inlet Tribal Council partnered with RESOURCE GUIDE Annette Island School District Innovation Incubator (work in progress): http://aisdk12.org/innovationincubator/open-invitation/ List of entry-level digital entrepreneurship innovations: http://lone-eagles.com/opportunities.htm Three-minute video walk-through: www.screencast.com/t/pOjDQvSt04v Service for creating apps without coding: http://workapphome.com/ Upper One Games (Cook Inlet Tribal Council): http://neveralonegame.com/ The first Alaska Native global video gaming business Resources for e-publishing and entrepreneurship: http://lone-eagles.com/digitizing-alaska.htm Six-minute video walk-through: www.screencast.com/t/4mLxDmzysM Personal assessment guide – readiness for self-directed learning: http://lone-eagles.com/academy-info-diet.htm NOVEMBER/DECEMBER 2014 | www.broadbandcommunities.com | BROADBAND COMMUNITIES | 83 ECONOMIC DEVELOPMENT Creating and running a global business is possible with only a few Mbps of bandwidth and minimal or no capital. E-Line Media, an entertainment and educational publisher based in New York City, to create an Alaska Native video gaming company that will sell educational games to a global market. Using imagery inspired by Alaska Native cultures, the games bring the world of traditional stories alive. Even if the gaming company does not create much youth employment, it will create interest in broader, more scalable, digital entrepreneurship opportunities. Citizens without a predilection toward education are unlikely to make the choice to self-educate and seek out entrepreneurial innovations without an opportunity literacy effort, peer encouragement and social recognition for their participation in a trusted, mutual support, local network – but, with such support, they can do it. These efforts show that creating and running a global business is possible with only a few Mbps of bandwidth and minimal or no capital. Thousands have already proven this. GETTING READY FOR THE GIGABIT FUTURE Will we all need far faster speeds sooner than we think? Most likely, but the The Leading Conference on Broadband Technologies and Services Broadband Communities Magazine s e t a l u t a r g n Co For becoming a Gold Sponsor as well as the Wi-Fi Café Sponsor at the 2015 Broadband Communities Summit. For more information on Spot On Networks, visit www.spotonnetworks.com. You are cordially invited to come see Spot On Networks at the upcoming To Exhibit or Sponsor contact: Irene G. Prescott [email protected] | 505-867-3299 877-588-1649 | www.bbcmag.com few who have a gigabit when most others don’t won’t have many others to connect to at that speed. One killer app would be life-size telepresence for meeting with loved ones – but, at present, it would make more sense to locate telepresence facilities in community anchor institutions (CAIs) than in homes. CAIs could begin to raise awareness for what inevitably is coming, and they could dramatically accelerate the arrival of these new applications by providing experiential opportunity literacy innovations. Innovation leadership in the U.S. is happening at the grass roots, and billions whose dire needs should morally be a priority to address are coming online. The emerging impacts of crowdsourcing, crowdfunding and peer mentoring, which offer the potential for everyone to be both learner and teacher, consumer and producer, all the time, are both subtle and blatant. Yet this is still very much a culture of silos that resists the politics of transparency in which truth is honored as fundamental to American values. If the U.S. is to be globally competitive, it will have to lead with a demonstration of honest values that can inspire all the world’s people and be adopted as their own. As William Gibson once said, the future has already arrived – it’s just not evenly distributed yet. v Frank Odasz is the president of Lone Eagle Consulting, which has specialized in rural, remote and indigenous Internet learning since 1997. He has offered workshops on rural e-commerce and telework strategies funded by USDA, USDOL, Alaska Department of Labor, NTIA/SBI and Connect Alaska. Lone Eagle’s grass-roots adventures range from delivering Internet workshops to 11 Alaska Native villages in 1998 to presenting rural broadband training best practices for Asia-Pacific Economic Cooperation (APEC International conferences). Recent online courses include teaching digital entrepreneurship as 21st-century workforce readiness. Contact Frank at [email protected]. Did you 2014 like this article? Subscribe here! 84 | BROADBAND COMMUNITIES | www.broadbandcommunities.com | NOVEMBER/DECEMBER MAKE THE LEAP ECONOMIC DEVELOPMENT Community Fiber Networks Boost Economic Development Broadband Communities held its third conference on broadband and economic development in Springfield, Mass., in September 2014. Following are highlights of some of the conference presentations. A BBC Staff Report Connecting Massachusetts C entral and Western Massachusetts have lagged behind the rest of the state in access to broadband, and dozens of rural towns still have little or no broadband access. This situation, which adversely affects those towns’ property tax bases, is now changing. In 2008, Governor Deval Patrick established and funded the Massachusetts Broadband Institute (MBI), whose goals are to improve broadband access, adoption and use throughout the state. MBI, in turn, won a federal BTOP grant and constructed a middle-mile network, MassBroadband 123, to provide transport in underserved areas. MassBroadband 123 now connects some 1,200 community anchor institutions, and the state legislature recently approved an additional $50 million to help provide last-mile access for homes and businesses. The central and western regions of Massachusetts, which have long been underserved, are beginning to see the benefits of fiber broadband. The unserved communities have been preparing for the last-mile build. Most of them joined forces to establish WiredWest, which will become the last-mile FTTH operator in the area. According to David Epstein, WiredWest’s executive director, about 13,000 households, or nearly half the households in the unserved area, have signed pledge cards showing their intention to subscribe to WiredWest services. MassBroadband 123, which was completed in February 2014, is already helping Massachusetts communities as well as state government agencies. BUILDING FIBER, SAVING MONEY Seven years ago, Kevin Warenda took the job of director of technology in the town of Longmeadow. He inherited a 10 Mbps cable broadband ring that the franchised service provider made available for free to the local government. The problem was that it didn’t work very well. Squirrels and rainstorms frequently brought the system to a grinding halt; even when it was running, it wasn’t fast enough. “How could we replace free bad technology with expensive good technology?” Warenda asked. Both the cable provider and the local telephone provider offered to build a better network and lease it to the city, but Warenda thought the city would be better off building its 86 | BROADBAND COMMUNITIES | www.broadbandcommunities.com | NOVEMBER/DECEMBER 2014 own network. Because the town was fiscally strapped, “it was a tough sell for the budget people,” Warenda said. MassBroadband 123 came to Longmeadow’s rescue when it connected the town hall, high school and police station to its regional network. That left only 11 more municipal buildings to connect, which the town borrowed $440,000 to do. Now, because Longmeadow can avail itself of the state’s low bandwidth prices, it has a 10 Gbps ring with a 200 Mbps connection for each building. All its systems are now cloud-based, including online permitting, bill paying and citizen reporting of potholes and similar problems. The town live streams municipal meetings and shares data with other towns. The network construction will pay for itself for in three years and the entire project in seven years. Warenda has plans for the future – he would like to provide Wi-Fi downtown and in the schools and offer fiber connections to local businesses. Only two of the 96 fiber strands are in use today, so huge amounts of capacity are still untapped. What made municipal officials decide to take the risk? In addition to MassBroadband 123, the October 2010 snowstorm was a deciding factor. That early snowstorm, which caught most of the Northeast by surprise, caused power outages that brought down all the town’s computer systems. Warenda explained to town officials that with cloud-based software, the town could have resumed operations from anywhere. “That helped the town leadership and school leadership understand the value of the system,” he said. FIBER NETWORKS FOR HEALTH CARE MassBroadband 123 connects many of the facilities of the Berkshire Health System (BHS), a group of hospitals, medical practices, long-term care facilities and other health care providers in Western Massachusetts. When BHS began using electronic health records and sharing data among providers serving the same patient, it suddenly had to transmit large quantities of data. A NONPROFIT MODEL Lev Gonick, OneCommunity: OneCommunity has a singular structure for a fiber network: We’re a notfor-profit rather than being community owned. We have a dual obligation – to benefit the community and to be economically sustainable. This model offers a chance for well-organized communities to do things differently. But to get it started, Case Western Reserve University had to cede away control of its network. “We needed a high-speed network,” said Bill Young, the organization’s chief information officer. “We’re becoming reliant on health care systems that have to be fully available and redundant and that save money.” (Recently, the benefits of redundant connectivity were dramatically demonstrated when a hospital’s primary connection failed and the facility was able to remain open by using its backup connection.) In addition to sharing electronic health records, BHS uses the network for telemedicine. Western Massachusetts is too sparsely populated to have specialists in every facility, but now, with a high-speed network, neurologists can diagnose and treat stroke patients remotely, saving valuable time. “The network is helping us change health care,” Young said, “and that will change the economy.” SUPPORTING SMALL BUSINESSES Even if fiber connections are not yet available to small businesses in Western KEEPING THE BTOP SPIRIT ALIVE Douglas Kinkoph, NTIA: Now that the huge BTOP effort is completed, how can NTIA continue to move the needle on broadband without grant money? One way is through technical assistance, including online resources, convenings, workshops and hands-on assistance at the request of communities. In addition, we are educating other federal agencies that do have money to spend – Department of Veterans Affairs, Housing and Urban Development, Department of Labor, Department of Education, Economic Development Administration and others – about using some of their funding for broadband. For example, HUD money can be used to connect public housing to broadband, and the EDA is about to announce a broadband project in Cleveland. [This project, a 100 Gbps metro ring funded by the EDA, the city of Cleveland and OneCommunity, was announced in November.] Communities are becoming more aware of their ability to build broadband networks, but they often underestimate the costs, particularly for pole attachments and marketing, and overestimate the penetration rates they will achieve. In addition, communities must be aware that they have to take the lead in using their networks for economic development. NOVEMBER/DECEMBER 2014 | www.broadbandcommunities.com | BROADBAND COMMUNITIES | 87 ECONOMIC DEVELOPMENT MARKETING A BUSINESS PARK Chris Merdon, Howard County, Md.: BTOP funded the Inter-County Broadband Network, which connected nine central Maryland counties and cities. Each jurisdiction took ownership of its own fiber; Howard County has 250 miles of fiber and has been pretty aggressive about using it. We plan to provide open-access lit services, and we have also become an Internet service provider for the businesses and community anchor institutions connected to the fiber. We’re very excited about the new partnership contract with the Columbia Gateway Business Park. That space wasn’t leasing well, but now that the owners will be able to market it as a gigabit facility, they can attract a different type of tenant. Note: Since the Springfield conference, Howard County has announced a telemedicine project in the public schools, a new corporate headquarters for systems integrator nTech Solutions, and enhanced connectivity for a nonprofit cultural and recreational association, all based on connections to the InterCounty Broadband Network. Massachusetts, they are available to anchor institutions that support those businesses. One is the Quaboag Valley Community Development Corporation, which works with small businesses and nonprofits in rural towns over a 400-square-mile area. The organization trains workers and business owners and operates a loan program. It also distributes grant funds to help businesses get broadband connections and acquire other technology. Grants have ranged from less than $500 to about $5,000, but for many recipients, “even a small dollar amount made a big difference,” said Sheila Cuddy, the organization’s executive director. Businesses and nonprofits that received technology grants include • a pet shelter that added technology to its mobile van • a social-service organization that accessed Internet-based training for its staff • a home-based craft business that sells via the Internet and accepts credit cards at craft fairs • a wholesaler that added an eBay presence • a furniture company that uses computer-assisted design and emails drawings to clients. • an auto body shop that sells parts worldwide. A survey of QVCDC’s clients showed that grant recipients increased their revenue, expanded their markets, reduced costs, and retained and added employees. None of the grants displaced employees. THE GATEWAY CITIES INITIATIVE Even outside the MassBroadband 123 area, underserved areas remain. One of these is north-central Massachusetts, where local mayors have taken matters into their own hands. The mayors formed a coalition – the Gateway Cities Initiative – to work on ideas that would benefit the region as a whole. The area still has a strong manufacturing base that employs 28 percent of the workforce, said Mayor Lisa Wong of Fitchburg, Mass. Most manufacturers are technologically advanced and operate in international markets. “But they need broadband,” Wong said. “That’s what they need to be competitive. And looking to the future, we’re hoping to attract companies in the life sciences and financial services.” Fitchburg took a step forward recently when it accepted a grant that funded free or reduced-cost lunch for all schoolchildren. This had the unintended effect of making all students’ families eligible for Comcast Internet Essentials, a low-cost, basic Internet service. “Now we can make sure every child and family has access to these technologies,” Wong said. The Fitchburg schools plan to make language-translation and educational resources available to children at home, especially in non-English-speaking homes. “Broadband is a big hope for equalizing literacy,” Wong said. “STATE GOVERNMENT IS A DIGITAL BUSINESS” Governor Patrick’s vision for Central and Western Massachusetts included more than just infrastructure, said William Oates, chief information officer for the Comonwealth of Massachusetts. Oates’s agency, MassIT, bridges the gap SMART RURAL COMMUNITIES Ashlea Kenalty, GVNW Consulting: When rural telcos build fiber-to-the-home networks, their communities can become “smart rural communities” and expand opportunities for residents. For example, in areas that have no pharmacies or clinics, metropolitan hospitals operate e-pharmacies and remote health monitoring so residents can access health care without traveling. Colleges offer virtual online degree programs. Residents with high-tech jobs can telecommute. Communities need to promote the use of the infrastructure they already have. 88 | BROADBAND COMMUNITIES | www.broadbandcommunities.com | NOVEMBER/DECEMBER 2014 FIBER TO THE PEERING POINT Tad Deriso, Mid-Atlantic Broadband: Our not-for-profit economic development agency owns and operates a middle-mile fiber network in rural Virginia. We connected our industrial parks to peering points in Atlanta and northern Virginia so tenants could have access to hundreds of carriers. That was the biggest driver of economic development I could imagine – way more successful than we expected. Of the last two dozen companies that visited us to discuss relocating or expanding, 100 percent asked how they could connect with AT&T, CenturyLink, Verizon, or whatever carrier was hosting their corporate cloud. None asked about gigabit service. So we market the region by telling companies that if they select one of these business parks, we can extend fiber to their facility at no cost and provide 100 Mbps to the peering point. That has a major impact. Since 2006, we’ve had 1,012 new jobs and $1.5 billion in private-sector investment. Microsoft put a big data center into a tiny town with no broadband – but Microsoft has a connection. That industrial park had been sitting fallow for years. The data center employs 150 people at an average salary above $40,000, and Microsoft pays taxes and gives money to the local schools. Now we’re working on attracting prospects that would like to locate near Microsoft. Favorable power costs are also a plus. Next, we’ll be working on connecting cell towers. The toughest problem is trying to connect residential users, which we don’t do directly. But wherever we put an Internet point of presence, a carrier comes in and uses it. We now have 45 carriers using our network. We’ve done fiber swaps with some of them. between technologists and operating managers in state agencies and tries to maximize the public benefit from the new infrastructure. Thanks to MassBroadband 123, the state has been able to locate a highperformance computing center and a central disaster recovery site in Central Massachusetts and make them available to all state agencies. It is developing strategies for making public data more useful to the public – for example, there is now a real-time application that tells travelers whether their trains TELEMEDICINE FOR ECONOMIC DEVELOPMENT Duke Horan, Henkels & McCoy: The Rural Nebraska Healthcare Network has increased residents’ access to health care, improved physicians’ efficiency and helped small towns recruit physicians. In addition, the network has indirect economic development benefits. A healthier workforce is more productive, and retirees can age in place because they can receive care without having to travel. Access to health care can even help persuade college-educated residents to remain in or return to the towns where they grew up. MEASURE TWICE, CUT ONCE Chris Lynch, Matrix Design Group: A good design for an FTTH network must include enough capacity to accommodate the growth in homes and businesses that the network will stimulate. All buildable plots should be included in the design. Take into account that some farms may be converted to housing developments. Just adding 10 percent to the number of premises won’t cut it. Make sure to include businesses in the design. We generally design active Ethernet for business versus GPON for residential areas. You might even need to provide T1 service for legacy business lines. Not just industrial parks but even day-care centers and machine shops need broadband today. Remember that many new jobs will be in home offices. If there are houses that can’t access broadband, people won’t move there, and children can’t do their homework. The builds we’re working on are getting extremely high take rates. In terms of speed, the important thing is not so much to offer gigabit speeds but to offer speeds comparable to what nearby areas are getting. People want to do whatever their neighbors are doing on the Internet, and they want to be able to sell their homes when they need to. NOVEMBER/DECEMBER 2014 | www.broadbandcommunities.com | BROADBAND COMMUNITIES | 89 ECONOMIC DEVELOPMENT are on time. “Clearly, this is just the beginning,” Oates said. “It would be tragic if we don’t build on these assets.” MassIT is already reducing costs by consolidating data centers and systems and coordinating such major IT initiatives as the health insurance exchange, public-safety broadband, next-generation 911 and mobile technology for child-safety workers. It is developing a culture of innovation by encouraging state agencies and startup businesses to launch pilot projects that use public data for public benefit. “State government is a digital business,” Oates said. Oates now hopes to work with local officials to extend MassBroadband 123 to more municipal facilities, including schools. “We want to provide better connectivity at lower cost,” he said. He also wants to help cities and towns use that connectivity for public benefit in the form of Wi-Fi hot spots, open-data applications and transparent government. “We want to eliminate the obstacles and limitations so that no one is BAR HARBOR RETAINS A RESEARCH LAB Josh Broder, Tilson: Jackson Labs in Bar Harbor, Maine, supports research institutions by breeding mice with specific genetic mutations. The lab was originally located in Bar Harbor because, being close to a big body of cold water, it’s a good place to breed mice. But there was no easy way to get fiber there – so the location was no longer so good once broadband became a necessity. With help from a new commercial carrier in Bar Harbor and from the state research and education network, the lab was able to get a fiber connection to Boston, where it can connect to Internet2 at low cost. It’s now linked to a new facility for computational science in Farmington, Conn. The 1,300 employees at the lab can continue working there. The issue now is getting connectivity to the off-island community where the lab’s employees actually live – but that community recently won a federal grant that will provide capital to build a lateral off the fiber line. The fact that a fiber line runs through the community from the lab to the research network made the grant application more competitive; it would have been a really hard case to make otherwise. The fiber is available to the community because it was part of a BTOP project, which makes it open access. To help smaller communities gain access to broadband, community anchor institutions where middle-mile fiber terminates should agree to serve as wire centers for distributing last-mile service. Small carriers or municipalities could colocate their headends in these institutions and share their connections to the Internet. In addition, we need to define anchor institutions more broadly. A cell tower could be an anchor institution – it provides 911 services, and it probably has fiber to the base. If some carrier spent a lot of money to build fiber there, we could start thinking about the cost of deployment beginning there. From the cell tower, fiber could be deployed to the schools and then to the rest of the community. Electric utilities’ smartgrid facilities could also serve as anchor institutions. There are substantial unmet opportunities for collaboration. digitally excluded,” he said. “We’re building a community to do great things on a bigger, broader scale.” v AFFINITY MARKETING FOR FIBER NETWORKS Craig Settles, Gigabit Nation: A network’s marketing dollars go further when the operator collaborates with organizations that can drive successful marketing campaigns. A partner may become an anchor subscriber, recruit other subscribers, donate funds or help obtain grants from others. For example, a school system may be an anchor tenant; market the network to teachers, students and parents; and may be eligible for grants that would help finance the network. Health care providers can fill similar roles. In Ottumwa, Iowa, a health care provider will provide new telehealth applications for patients, making that facility a conduit to new subscribers. Similarly, a county government that wants to provide e-government services might have an incentive to get residents to subscribe. A large employer might want its employees to telecommute. A local chamber of commerce can be a conduit to small businesses. One network uses its relationship with a data center company as a way to recruit business customers. Did you 2014 like this article? Subscribe here! 90 | BROADBAND COMMUNITIES | www.broadbandcommunities.com | NOVEMBER/DECEMBER Subscribe today. FREE to those who qualify. Broadband Communities continues to be the leading source of information on digital and broadband technologies for buildings and communities. In every issue, we offer in-depth news, expert insights, and practical know-how on all aspects of outfitting properties and communities with broadband solutions. Our editorial aims to accelerate the deployment to Fiber-To-The-Home and Fiber-To-The-Premises while keeping readers up to date on the available solutions capable of serving their practical needs. Original Research • Trusted Reports Latest Trends • Industry News Every issue is filled with valuable articles on Technology • Finance • Law • Marketing www.bbcmag.com/subscribe • 877.588.1649 ECONOMIC DEVELOPMENT Bad Broadband Equals Low Population Growth An original Broadband Communities study shows a startling, 10-fold difference in population growth between broadband haves and have-nots. By Steven S. Ross / Broadband Communities G ood broadband is even more closely related to economic opportunity than has been realized. An exclusive Broadband Communities analysis of census data and National Broadband Map (NBM) data for all 3,144 counties in the 50 states and District of Columbia reveals that counties in the bottom half of their state rankings for access to 25 Mbps download speeds had a population growth of only 0.27 percent from 2010 through the end of 2013. The top half enjoyed growth of 2.79 percent – more than 10 times greater. In actual numbers, counties in the bottom half of their state rankings added just 134,390 people, and those in the top half added more than 7.2 million. The differences are even more stark when the top 10 percent of counties in each state is compared with the bottom 10 percent. The counties ranked in the lowest 10 percent for Counties that lag other counties in their states in access to good broadband are actually losing population; counties with the best broadband in their states are growing quickly. Get more details about this population study at the Broadband Communities Summit in Austin, April 14–16. broadband access lost 0.55 percent of their population on average. The top 10 percent gained 3.18 percent. The single top-ranked counties in each state grew even faster – 3.61 percent. Again, in actual numbers, the top county in each of the 50 states added more than 1.1 million to their populations in the aggregate – a quarter of the total population gain experienced by the top 10 percent. A recent Commerce Department study highlights the relative lack of broadband in rural areas compared with urban areas, and new census data shows that, between 2010 and 2012, for the first time in U.S. history, most rural counties lost population. The Broadband Communities study confirms a strong association between these two phenomena. The methodology used in this study overcomes many of the shortcomings of studies released by the Commerce Department. 92 | BROADBAND COMMUNITIES | www.broadbandcommunities.com | NOVEMBER/DECEMBER 2014 COUNTY RANK WITHIN STATE FOR 25 MBPS COVERAGE 2010 POPULATION 2013 POPULATION POPULATION CHANGE PERCENT CHANGE Bottom 10% 5,420,347 5,390,628 -29,776 -0.55% Bottom half 49,586,078 49,720,525 134,390 0.27% Bottom county 1,318,114 1,322,720 4,549 0.35% Top half 258,559,871 265,761,865 7,201,994 2.79% Top 10% 131,229,210 135,396,793 4,167,583 3.18% Top county 31,225,768 32,351,828 1,126,060 3.61% The 1,500-plus counties in the top half of their states in terms of access to at least 25 Mbps broadband enjoyed 10 times the percentage population growth of the bottom half. The bottom 10 percent in each state, in aggregate, actually lost population. • This study defines broadband as 25 Mbps, which FCC Chairman Tom Wheeler recently said was “fast becoming ‘table stakes’ in 21stcentury communications,” rather than as the 3 Mbps speed that the NBM rural-urban comparison uses. Access to 25 Mbps service is a realistic indicator that a household or business can use most available broadband applications. • Using countywide data sidesteps the issue of “if it is available anywhere in a ZIP code or census block, everyone in the area is assumed to have access” because each county contains multiple census blocks and ZIPs. The percentage of households with access is rated across multiple ZIPs, which allows a meaningful ranking system within each state. • Aggregating by county is preferable to aggregating by state, as many NBM studies do, because almost all states have wide variations among counties. • This study does not require identification of counties as “urban” or “rural,” categories that are notoriously difficult to define at the county level. Exurban counties often include some areas that are functionally urban and others that are functionally rural. • By using population change as the key economic metric, this study can access more current and more accurate base data than studies that rely on employment change. Population change both drives and reflects changes in employment and income. • This study extends the population data beyond 2012 and lays the groundwork for more refined analyses that include the number of premises and road miles for each county; the number and size of multiple-dwelling-unit buildings, business premises and households (to determine the percentage of premises actually occupied); and population age profiles. • The study uses percentile rather than absolute ranking of counties because states range in number of counties from three in Delaware to 254 in Texas. The District of Columbia has just one “county” by census rules. Obviously, the eighthranked county in Texas would differ competitively from the eighthranked county in Connecticut (which has only eight counties). Rural counties suffered population decline in every region. This is the first time in U.S. history that population declined in a majority of rural counties. NOVEMBER/DECEMBER 2014 | www.broadbandcommunities.com | BROADBAND COMMUNITIES | 93 ECONOMIC DEVELOPMENT There is a clear relationship between percentage population gain or loss and the percentage of the population in a given county with access to at least 25 Mbps download speed. Nevertheless, the availability of broadband at that speed accounts for only about 10 percent of the variance in population change. In these charts, each of the 3,144 counties in the United States is represented by a dot, no matter what the county’s population actually is. Counties on the left side of the chart (low broadband availability) tend to be much, much smaller than counties on the right. Regression error is very small; there is almost no Working-Hotelling effect, and n is very large. Source: Broadband Communities, from census data April 2010– December 2013, and National Broadband Map, data mainly from December 2013. 94 | BROADBAND COMMUNITIES | www.broadbandcommunities.com | NOVEMBER/DECEMBER 2014 WHY DO GROWTH RATES DIFFER? The reasons for county growth disparities go far beyond access to broadband, of course. In fact, many of the most sparsely populated counties added population after 2010 even though the majority of counties that the census defines as “rural” lost population. When population is very low, construction of a single new business premises or small subdivision can add several percent to population in a single year. The scatterplots (which, in the interest of clarity, omit a few counties with post-2010 population growth greater than 15 percent or less than -10 percent) show the wide variations in percentage growth at any level of 25 Mbps (and higher) access speeds. Still, counties with little or no broadband access at this level tend to have much lower populations, and those with nearzero broadband access tend to have the lowest populations of all. Two possible relationships between broadband access and population loss or gain were tested – a linear (straightline) relationship and a second-order polynomial (curved-line) relationship. A polynomial relationship suggests that broadband’s effect on population change is stronger when broadband is more available. The polynomial relationship turned out to be a slightly better fit (R 2= 0.09 versus 0.07) and does not cross into positive population growth before 60 percent access to at least 25 Mbps. The linear regression goes positive before 40 percent. This suggests that access to good broadband could account for nearly 10 percent of the population changes seen – quite a lot for a single variable. But is it lack of broadband that causes the population loss? Or does This National Broadband Map graphic shows the difference in access between rural and urban areas in each state for low access speeds (at least 3 Mbps down, 768 Kbps up). The deep blue states have a disparity of greater than 12 percent, and the very lightest blue states have a disparity of only 2 to 4 percent at these low “broadband” speeds. Source: National Broadband Map. population loss, with its bad prospects for turning a profit on broadband, limit broadband availability? Last year, for example, CenturyLink listed metropolitan population growth as a criterion in its choice of locations for gigabit deployments. The data are not adequate to definitively answer this question, and conversations with county and state officials suggest that, in some cases, population loss was already ongoing, and in other cases, lack of broadband seems to have caused population loss. The shape of the “scatter” in the scatterplots suggests that for at least half the counties, population loss was an effect of poor broadband, not the cause. However, answering the causeand-effect question is not a purely statistical exercise. To arrive at a strong Which comes first, population loss or inadequate broadband? It seems likely that population loss comes first in some instances and poor broadband in others. conclusion in any one county requires considering many variables – the age and education profile of the population, incomes from government transfer payments and pensions as well as from current economic activity, job creation and so forth. The stimulus program (which reduced deployment and operating costs by cutting backhaul prices), emerging technologies for cutting deployment costs, and increasing revenue potential also put their thumbs on the scale. By using the state rankings, this study essentially compared counties with nearby counties that have better or worse access. This is an especially good technique when population migrations are considered. The easiest migrations are short – to the next county rather than to the next state or the opposite coast. Often, of course, the nearest county with good prospects is in a nearby state. The next iteration of this study will check that effect as well. See us at the Broadband Communities Summit in Austin next April for an update! v Editor-at-large Steve Ross can be reached at [email protected]. Did you like this article? Subscribe here! NOVEMBER/DECEMBER 2014 | www.broadbandcommunities.com | BROADBAND COMMUNITIES | 95 ECONOMIC DEVELOPMENT The Killer App for Local Fiber Networks For a community fiber network, economic development may be the killer app – the application that validates the use of the platform. By Jim Baller, Joanne Hovis and Ashley Stelfox / Coalition for Local Internet Choice and Masha Zager / Broadband Communities N early every U.S. community that has developed a fiber optic broadband network or partnered with the private sector to acquire one has put economic development at the top of its list of reasons for doing so. Communities increasingly recognize that fiber networks also provide critical benefits for education, public safety, health care, transportation, energy, environmental protection, urban revitalization, government service and much more. But only in revitalizing and modernizing local economies and creating meaningful, well-paying jobs do community leaders, businesses, institutions and residents consistently find common ground. In short, economic development and job creation can fairly be called the “killer app” for local fiber networks. Despite the central role of economic development and job creation in any discussion of fiber networks, there is still much to learn about the relationship between them. WHAT IS ECONOMIC DEVELOPMENT? Let’s begin with definitions. According to the U.S. Economic Development Administration, Economic Development creates the conditions for economic growth and improved quality of life by expanding the capacity of individuals, firms, and communities to maximize the use of their The Summit economic development track will present more FTTH success stories. Austin, April 14–16. talents and skills to support innovation, lower transaction costs, and responsibly produce and trade valuable goods and services. Economic Development requires effective, collaborative institutions focused on advancing mutual gain for the public and the private sector. Economic Development is essential to ensuring our economic future.1 Similarly, the World Bank defines economic development as follows: The purpose of local economic development is to build up the economic capacity of a local area to improve its economic future and the quality of life for all. It is a process by which public, business and nongovernmental sector partners work collectively to create better 96 | BROADBAND COMMUNITIES | www.broadbandcommunities.com | NOVEMBER/DECEMBER 2014 conditions for economic growth and employment generation.2 Many economic development strategies and options are available to communities. They can focus on increasing the profitability of local businesses, increasing the number of local jobs, increasing the quality of local jobs or striking a balance among these goals.3 They can seek to attract or retain a relatively small number of large companies, a larger number of small to medium-sized businesses or a combination of both. Communities can concentrate on their local economies, cooperate with neighboring communities or involve themselves in larger regional initiatives. They can attempt to support the growth of all local industries or target particular industries – high-tech, health care, data centers and so forth – with the best prospects. Once communities decide what they want to do, they typically have a wide choice of development tools available. They can offer tax incentives or loans and other financial enticements. They can establish improvement districts, enterprise zones, and other kinds of development areas. They can improve roads, sewers, water facilities and other infrastructure. They can offer favorable terms and accelerate approval of franchises, permits and other necessary authorizations.4 They can support workforce development and training. They can use local government purchasing power to increase a targeted company’s sales, thereby reducing its risks. They can help aggregate demand within the community. They can also seek grants, loans, and other support from federal and state agencies, foundations, and other organizations. One development tool is to improve broadband infrastructure, and even here, communities usually have multiple options. They can work with willing incumbents, enter into public-private partnerships with new entrants, establish advanced communications networks of their own or develop other innovative approaches that work for them. Making advanced broadband available is only one of many economic development tools, but studies show that broadband appears to have a positive effect on a range of economic indicators. THE LINK BETWEEN BROADBAND AND ECONOMIC DEVELOPMENT Although the availability of advanced broadband networks is only one among many tools for economic development and only one of several factors an entity takes into account in deciding whether to move to or remain in a particular community,5 several formal studies have been done on the relationship between broadband and economic development.6 The first wave of these studies, which focused on firstgeneration, low-capacity broadband networks, suggests that there is at least an association and probably even a causal relationship between broadband and economic development. Other studies indicate that “the Internet plays an integral role in helping small businesses achieve their strategic goals, improve competitiveness and efficiency, and interact with customers and vendors.”7 Studies also confirm that broadband expansion can dramatically increase state GDP and tax receipts.8 Site selectors report that locations are now routinely eliminated because of inadequate telecommunications infrastructure.9 For example, in a 2005 study, George S. Ford and Thomas M. Koutsky concluded that “broadband infrastructure can be a significant contributor to economic growth ... [and] efforts to restrict municipal broadband investment could deny communities an important tool in promoting economic development.” The study “quantif[ied] the effect on economic development resulting from a community’s investment in a broadband network” by looking at Lake County, Fla., which developed a municipal broadband network in 2001 and provided access to the network to private businesses. In comparing Lake County with similar communities in Florida that did not have municipal broadband networks, Ford and Koutsky found that Lake County had “experienced 100 percent – a doubling – in economic growth relative to its Florida peer counties” since the deployment of the municipal network. The study points out that this doubling occurred despite the fact that these other counties “no doubt” had private broadband networks during the evaluation period. In another 2005 study, analyzing data from 1998–2002, Sharon Gillett, William Lehr, Carlos Osorio, and Marvin Sirbu found that communities in which mass-market broadband became available by December 1999 “experienced more rapid growth in employment, number of businesses overall and businesses in IT-intensive sectors.10 Likewise, in a 2007 study, Robert Crandall, William Lehr and Robert Litan concluded that broadband not only increased nongovernmental employment by 0.2 to 0.3 percent but also had a positive impact on GDP.11 In 2010, Jed Kolko found a “positive relationship” – one that “leans in the direction of a causal relationship, though not definitively” – between broadband expansion and local economic growth. Kolko’s study revealed that almost all industries showed a positive relationship between broadband expansion and local economic growth, particularly in industries that rely on information technology, such as utilities, information, finance and insurance, NOVEMBER/DECEMBER 2014 | www.broadbandcommunities.com | BROADBAND COMMUNITIES | 97 ECONOMIC DEVELOPMENT technical services, management of companies and enterprises, and administrative and business support services.12 In their 2013 study, Brian Whitacre, Roberto Gallardo and Sharon Strover focused on the impact of broadband on the economic health of rural areas. They found that “high levels of broadband adoption in rural areas do causally (and positively) impact income growth ... as well as (negatively) influence poverty and unemployment growth. Similarly, low levels of broadband adoption in rural areas lead to declines in the number of firms and total employment numbers in the county.”13 FIBER NETWORKS AND THE ECONOMY Given the relatively recent emergence of fiber networks, there is not yet a large enough database to support statistically rigorous statements about the relationship between high-bandwidth broadband connectivity and economic development. It is clear, however, that fiber networks enable hundreds of thousands of individuals to work from home, adding tens of billions of dollars annually to the U.S. economy.14 In addition, fiber connectivity adds between $5,000 and $6,000 to the value of a $300,000 home in the United States.15 A series of studies conducted at the Chalmers University of Technology in Gothenburg, Sweden, specifically addressed the effects of broadband speed. In their first report, published in 2011, the researchers concluded that increases in broadband speeds contributed significantly to economic growth.16 In a report published in 2013, the same researchers concluded that, in developed countries, the threshold level for broadband to have any impact on household income was 2 Mbps; gaining 4 Mbps of broadband increased household income by $2,100 per year.17 Given that fiber networks are capable of nearly unlimited speed, it appears that their potential economic impact is higher than that for lowercapacity broadband. A recent study commissioned by the Fiber to the Home Council Americas compared economic activity in 14 metropolitan statistical areas (MSAs) in which gigabit-speed connectivity was widely available (to more to than 50 percent of the households) with economic activity in 41 similarly sized MSAs in the same states in which gigabit speeds were not available. According to the study’s investigators, “our model suggests that for the MSAs with widely available gigabit services, the per capita GDP is approximately 1.1 percent higher than in MSAs with little or no availability of gigabit services. These results suggest that the 14 gigabit broadband communities in our study enjoyed approximately $1.4 billion in additional GDP when gigabit broadband became widely available.”18 Although this study focuses on “early evidence” and is far from conclusive, it is consistent with the field experience of many communities. What formal studies do not yet reveal is how many units of economic development a community can expect from a specific dollar investment in a fiber network under the unique conditions present in that community. Neither the data nor the analytical tools to do this will be available in the foreseeable future. As Graham Richard, former mayor of Fort Wayne, Ind., observed, “From the point of view of retaining and gaining jobs, I can give you example after example [of the impact of broadband]. … What I don’t have is a long term, double-blind study that says it was just broadband.” But, “as a leader, sometimes you go with your gut.”19 THE VIEW FROM THE TRENCHES A huge and rapidly growing body of evidence confirms that, at least in some localities, advanced broadband networks can indeed spur economic development and create jobs. The communities cited here have taken differing approaches based on their individual resources and economic development needs. Some make fiber available to businesses; others serve households as well. Some are more concerned with increasing the availability of broadband, and others focus on reducing its price. Some try to retain existing large employers, and others aim to attract new startups. The common thread is that economic development officials are working closely with existing and potential employers to identify, understand and meet their needs for advanced communications capabilities. • Cedar Falls, Iowa: In the 1990s, Cedar Falls Utilities built a citywide municipal hybrid fibercoaxial network and provided fiber connections to commercial and industrial customers in both the city and the industrial park.20 Over the years, Cedar Falls watched businesses from neighboring towns relocate to the area, in part because of the need for more bandwidth and greater Internet capabilities.21 Cedar Falls has now made the transition to all fiber and became the state’s first gigabit city in 2014. Jim Krieg, general manager of Cedar Falls Utilities, noted the growth fiber optics had generated: “Twenty years ago, [Cedar Falls] had 27 businesses and $5 million in taxable valuation; today, there are 160 businesses and $270 million in valuation.”22 • Chattanooga, Tenn.: With its fiber-to-the-home network offering gigabit speeds throughout the city, Chattanooga has attracted several major companies, including Volkswagen, which has already spent more than $1 billion building factories in the area and created 12,000 new jobs, as well as Homeserve USA and Amazon.23 Chattanooga’s innovative, highspeed fiber network has also created an entrepreneurial boom in the city.24 • Cumberland, Md.: Cumberland, Alleghany County and the county board of education have partnered for 15 years on an innovative wireless infrastructure program that delivers high-quality services to government users and makes available both middle-mile and 98 | BROADBAND COMMUNITIES | www.broadbandcommunities.com | NOVEMBER/DECEMBER 2014 last-mile wireless capabilities for private ISPs that serve residential, business and health care customers. The availability of these services, particularly in the most rural parts of the county, distinguish the county from other rural areas. It has enabled the development of homebased businesses and attracted second-home buyers who otherwise would not have chosen to locate in the county. • The Dalles, Ore.: The Dalles, a city of 11,873 residents in the picturesque Columbia River Gorge, operates a 17-mile municipal fiber optic network. In 2005, as a direct result of The Dalles’s municipal networking capabilities, Google decided to purchase an industrial site there for $1.87 million to house high-tech equipment that would be connected to the rest of the company’s network. According to the man who coordinated the deal with Google, “It was visionary – this little town with no tax revenues had figured out that if you want to transform an economy from manufacturing to information, you’ve got to pull fiber.”25 The project was expected to create “between 50 and 100 jobs over a matter of time, earning an estimated average of $60,000 annually in wages and benefits.”26 The Dalles succeeded so well that it recently paid off its network debt well ahead of schedule.27 • Danville, Va.: In contrast to The Dalles, Danville did not have a fiber network when AOL came looking for a site. As a result, AOL struck Danville off its list of potential sites for a new data center and located the center in Prince William County, Va.28 After this setback, Danville developed a fiber network of its own. Now known as the “Comeback City,” Danville used its fiber network to revitalize its economy, once the worst in the state with a 19 percent unemployment rate, and made the city a site of robust economic development, attracting Microsoft, IKEA and many other new, high-tech businesses.29 • Kendall County, Texas: A cooperative telephone company, GVTC, began building out FTTH in the Texas Hill Country in 2004. It works closely with the Kendall County Economic Development Corporation to promote the network to businesses. As a result, the region’s growth has outpaced the rest of Texas by 4 percentage points. Corporate site selection committees no longer reject sites in the county. An economic development official said, “If I don’t have fiber, I’m eliminated – not just Get Connected! Get connected to the Private Cable industry’s fastest growing source of revenue, broadband data. Call AMT, the experts in the latest DOCSIS technology to guide you every step of the way. • • • • • Best in Class CMTS Modems, Wireless Routers & Telephony Gateways Local & Hosted Provisioning Systems Technical Services IPTV over DOCSIS For more information, call 888.293.5856 or visit amt.com 3150 SW 15th Street | Deerfield Beach, FL 33442 | 954.427.5711 | [email protected] Multiple Solutions. One Source. NOVEMBER/DECEMBER 2014 | www.broadbandcommunities.com | BROADBAND COMMUNITIES | 99 ECONOMIC DEVELOPMENT Lafayette, La., is becoming a technology hub, with many companies relocating to the area because of its excellent, affordable Internet connectivity. • fiber to the business, because the executives are commuting to San Antonio and want to work from home because of gas prices. Fiber allows throughput and security.” Software companies, medical companies and aerospace companies have relocated to or stayed in the area because of the fiber network. Even Hill Country wineries, which constitute a small but tenacious local industry dating back to early German settlers, are now putting towns such as Fredericksburg and Boerne on vintners’ maps. • Lafayette, La.: “When NuComm International needed to locate a new call center – one that would add 1,000 jobs ... to the local economy – it chose Lafayette, La., because the city is building a massive fiber network to connect everyone.”30 Lafayette has garnered attention in the tech sector, with many companies relocating to the area because of Internet connectivity. In one example, “Scott Eric Olivier moved his tech startup firm, Skyscraper Holding, from Los Angeles to Lafayette when he heard of the speeds and service offered by LUS Fiber.”31 Olivier says the same 100 Mbps connectivity that costs him $200 per month in Lafayette, enabling him to move large files across the Web, would cost him several thousand dollars a month anywhere else. In the past few months, Lafayette attracted three new employers that will bring 1,300 jobs into the city.32 • Martinsville, Va.: Martinsville’s fiber network enabled it to attract major businesses, such as defense contractor SPARTA Inc.’s research center, Mehler Texnologies, American Distribution and Warehousing and ICF International (500+ jobs).33 • Mesa, Ariz.: In the early 2000s, Mesa started placing conduit in its rights-of-way during capital construction projects and any other time a road was open. The city built a critical mass of conduit and fiber over a decade and a half, and it partners actively with private entities seeking access to conduit and fiber. Apple located a silicon research lab in Mesa, and the city credits the direct fiber connection to that facility as a significant part of the inducement for Apple and other entities to locate in Mesa. • Montgomery County, Md.: In the mid-1990s, Montgomery County developed a sophisticated revitalization plan for downtown Silver Spring, which had seen steady economic deterioration and high retail and office vacancy rates. Important to the revitalization was attracting Discovery Communications and the American Film Institute (AFI) to locate as anchors; a key to attracting those anchors was that the county provided dark fiber resources to the locations where they committed to build. This revitalization has been enormously successful, and Discovery and the AFI Silver Theatre and Cultural Center have proved essential to the redevelopment of Silver Spring. • Powell, Wyo.: In anticipation of the construction of a fiber-tothe-home system in rural Powell, a South Korean venture capital firm agreed to pay up to $5.5 • • • million to engage 150 certified teachers, working from their homes, to teach English to students in South Korea using high-speed videoconferencing.34 The FTTH system has been so successful that the city was able to buy out its investors 18 years ahead of schedule.35 Princeton, Ill.: Princeton built a fiber network to retain IngersollRand as a major local employer; it now has more than 75 commercial customers, and most banks in town are connected with fiber. The broadband utility is regarded as attractive for potential employers.36 Pulaski, Tenn.: Local economic development leadership has begun marketing Pulaski Electric System’s services to nearby Huntsville, Ala., home to a large number of defense and space industries. Before PES built its network, the community had never attempted to approach the defense or aerospace companies because it had little to offer that met their special needs. The FTTH network has allowed several existing industries to receive superior service at much lower prices than they paid previously. The system has become a focus of community pride and an example of the community’s willingness to invest in the future.37 Reedsburg, Wis.: Reedsburg’s FTTH system “has allowed Lands’ End to develop a kind of virtual call center, with many of its customer service representatives working out of their homes.”38 San Leandro, Calif.: San Leandro, located in the San Francisco Bay area, competes with such tech giants as Silicon Valley for local businesses. In 2012, with the goal of attracting modern, technology-based industries to San Leandro, the city established a partnership with a local business owner to create an ultra-highspeed fiber broadband network. The network, Lit San Leandro, is largely privately funded but utilizes the city’s conduits to run the underground fiber network. After only two years, Lit San Leandro is 100 | BROADBAND COMMUNITIES | www.broadbandcommunities.com | NOVEMBER/DECEMBER 2014 already attracting businesses to the area. For example, a 3D printing firm moved from San Francisco to a factory in San Leandro after considering more than 50 other locations. Similarly, a Kaiser hospital was built on the site of a former grocery distribution center, and the Westlake/OSIsoft Technology Complex, which includes three six-story, 300,000-square-foot tech offices, located in a former Del Monte cannery.39 • Santa Monica, Calif.: Santa Monica’s Information Systems Department mapped out a plan for the creation and expansion of its broadband network in 1998. Since then, the city has been slowly and methodically implementing its plan, saving city government $700,000 a year in communications costs as well as making advanced communications capabilities available to private entities. In 2014, the city upgraded its fiber optic network speed to 100 Gbps.40 According to the city’s chief information officer, Jory Wolf, the network has already contributed significantly to the city’s economic growth, and he expects the business sector to leverage the upgraded network for service models, content distribution and telemedicine initiatives.41 • South Bend, Ind.: In the early 2000s, South Bend began researching how to improve its telecommunications networks.42 South Bend had fiber networks in place, but it was not in a position to develop and operate the networks itself. Because no existing providers were interested in establishing vendor-neutral fiber services through the city’s infrastructure, South Bend worked with local partners to establish Metronet, a nonprofit dark fiber network that serves government, educational and other nonprofit entities. Its for-profit subsidiary, St. Joe Valley Metronet (SJVM), provides fiber access to banks, manufacturers and other businesses. The profits from SJVM are paid to Metronet through dividends and help subsidize Metronet’s continued operations and expansion. SJVM has helped draw technology businesses to South Bend, from the GramTel data center in 2009 to the 2013 launch of a new coworking and meeting/conference space in the downtown area. These are a small handful of the many projects across the country that use advanced communications capabilities to support economic development and at the same time use the benefits of economic development to fund their networks and make them sustainable. NEXT STEPS More information about the economic benefits of advanced broadband will continue to come to light. For one thing, the federal broadband stimulus programs invested billions of dollars in hundreds of middle-mile and last-mile projects across the United States. Most of these projects were completed only recently, and once they have a few years of operating experience under their belts, they will produce a wealth of information about what worked well and what did not in stimulating economic development. The growing interest in gigabit networks is also likely to increase the understanding of how widespread availability of gigabit speeds affects economic development. Google Fiber’s entry into the market, the gigabit projects of numerous community networks, and recent gigabit announcements by such private players as AT&T, C Spire Fiber, CenturyLink, Cox Communications and others have made “gigabit” a household word. In many communities, organizations such as the Mayors’ Bistate Innovation Team (formed by the mayors of Kansas City, Kan., and Kansas City, Mo.) are emerging to analyze and stimulate economic development and other uses for the new gigabit connectivity. Useful analytical approaches and devices are emerging to help communities reap the economic benefits of advanced broadband. For example, Strategic Networks Group has developed tools to measure and analyze broadband utilization and benefits to businesses, organizations and households.43 These tools, backed by a growing database that currently covers more than 16,000 businesses and 12,000 households, can provide detailed analyses of the economic impacts of broadband utilization and enable businesses and organizations to compare themselves with other entities of comparable size and other characteristics. As the databases grow, they will become increasingly valuable. In addition, communities that have advanced communications capabilities are increasingly talking to one another, sharing resources and lessons learned, and collaborating when possible. Broadband Communities has sought to facilitate such exchanges by hosting a series of national and regional economic development conferences. Over time, the path from broadband investments to economic development should be faster, more efficient and less costly to navigate. In short, as Graham Richard suggests, we should have ample information to let our instincts lead us to sound decisions. v Jim Baller is president of the Baller Herbst Law Firm, Ashley Stelfox is an associate at the Baller Herbst Law Firm, and Joanne Hovis is president of CTC Technology and Energy, a consulting firm. They are among the founders of the Coalition for Local Internet Choice, which supports the authority of local communities to make the broadband Internet choices essential for economic competitiveness, democratic discourse and quality of life in the 21st century. See www.localnetchoice.org for more information. Masha Zager (masha@ bbcmag.com) is the editor of Broadband Communities. The endnotes to this article will appear in the digital edition, online at www.bbcmag.com. Did you like this article? Subscribe here! NOVEMBER/DECEMBER 2014 | www.broadbandcommunities.com | BROADBAND COMMUNITIES | 101 2014 SUPPORTERS 2014 Supporters: Champions of Fiber Networks For Community Broadband AFL 800-235-3423 www.AFLglobal.com Clearfield 763-476-6866 www.clearfieldconnection.com Comcast 1-800-xfinity www.comcast.com/multifamily Calix 707-766-3000 www.calix.com/gigabit Broadband Communities Magazine 877-588-1649 www.bbcmag.com NiSC 866-999-6472 www.nisc.coop BEC 972-422-0877 www.bectechnologies.net OFS 888-342-3743 www.ofsoptics.com $)XUXNDZD&RPSDQ\ Corning 800-743-2671 www.corning.com/opcomm FTTH Council 202-524-9550, ext. 3 www.ftthcouncil.org Crownduit 718-619-6965 www.crownduit.com ® Power & Tel 901-866-3300 www.ptsupply.com Pavlov Media 800-677-6812 www.pavlovmedia.com Finley Engineering 417-682-5531 www.fecinc.com Cox 404-269-3979 www.cox.com RVA, LLC 918-592-3100 www.rvallc.com CLIC www.localnetchoice.org 102 | BROADBAND COMMUNITIES | www.broadbandcommunities.com | NOVEMBER/DECEMBER 2014 TECHNOLOGY Nontraditional PON Architectures Fiber-to-the-home network designers need creative solutions for areas with limited fiber and those that have long distances between neighborhoods. By Tom Anderson / CommScope A s the deployment of FTTH solutions increases, real-world network topologies are challenging the abilities of traditional passive optical network (PON) architectures. PON technology was conceived, and standards were developed, by the Institute of Electrical and Electronics Engineers and International Telecommunication Union around a centrally located optical line terminal (OLT) that delivered services over a singlefiber architecture to 32, 64 or 128 optical network units (ONUs, also called optical network terminals, or ONTs) at a 20-kilometer range. Standards-based optics have been developed to extend that range to 30 and 40 kilometers, providing good solutions for simple range extensions while keeping the optical distribution network (ODN) truly passive. Those traditional PON architectures are quite suitable for delivering the benefits of PON to the majority of network operators’ subscriber bases; however, there are situations for which those solutions are not a perfect fit. For example, areas with limited fiber availability and deployments that need to provide service beyond the range of traditional PON are driving the need for alternative answers. This challenge demands a solution; here are three ways CommScope is actively engaged in solving these problems. PUT THE OLT IN A NODE For brevity, let’s call this approach a node-based OLT or an N-OLT. The OLT can be placed practically anywhere in the outside plant (OSP), with traditional PON distribution from that point on. By using available Ethernet-over-fiber technologies, an N-OLT uses its fiber feeds efficiently, requiring as few as one fiber to serve the OLT. Those same technologies also allow the N-OLT to be located at long distances from the headend and close to subscribers, where short drops and high split counts can optimize the network. Trade-offs include the challenges posed by active elements in the OSP, such as powering, back-up power and increased maintenance logistics. TEMPERATURE-HARDEN A SMALLER, REMOTE OLT Let’s call this approach a remote OLT (R-OLT). This can be deployed outside an environmentally controlled headend environment in a rack-mounting form factor. Hardening enables R-OLTs to be installed in equipment rooms, OSP cabinets and similar locations in which temperatures are not controlled as they are in a headend but that are protected from rain and snow. This accomplishes several things. Like an N-OLT, an R-OLT is closer to end users, allowing for shorter drops and less fiber from the splitter to ONUs. And, as with an N-OLT, feeds from the network are fiber-efficient and have a great deal of range flexibility. Deployment locations are more limited than with N-OLTs and require external enclosures, but power is typically available where R-OLTs can be deployed, accessibility can be limited (for example, when R-OLTs are in customer premises) and the expense and complexity of a weather-sealed housing is avoided. 104 | BROADBAND COMMUNITIES | www.broadbandcommunities.com | NOVEMBER/DECEMBER 2014 How a PON extender works THE PON EXTENDER This design leaves the OLT in the headend; however, instead of standard PON optics with fixed wavelengths, multiple wavelengths are used to multiplex a number of PON streams onto a single fiber. That single fiber connects to the PON extender where the PON streams are recovered and retransmitted from the extender to ONUs using standard PON optics. This approach could easily be termed a “PON concentrator” because of its ability to carry multiple PONs on a single fiber between the OLT and the PON extender. The benefits of this approach are CommScope’s broadband optical solutions product strategy and portfolio. For more information, see www.commscope.com. • Good fiber utilization between the OLT and the PON extender because only a single fiber is needed for every eight PONs • Less complexity than an OLT, with reduced maintenance and increased reliability in the OSP • Ability to place the device virtually anywhere in the OSP (just like an N-OLT) because its OSP-friendly node enclosure allows it to be placed close to power and/or subscribers. There are trade-offs with this architecture as well, such as distance limitations due to timing requirements for the OLTto-ONU PON circuit. A PON extender doubles the number of optical transceivers in the PON ODN. In addition, like the N-OLT, it is an active device with powering and maintenance logistics challenges. All these solutions have a place in FTTH and FTTB networks and expand the ability of PON to be a universal service platform. Do they have a place in your network? v Tom Anderson, who has more than 25 years’ leadership experience in the telecommunications industry, is responsible for Did you like this article? Subscribe here! NOVEMBER/DECEMBER 2014 | www.broadbandcommunities.com | BROADBAND COMMUNITIES | 105 BROADBAND COMMUNITIES MARKETPLACE To reserve space in this section and LEVERAGE the power of your advertising via print, digital, and multimedia exposure in the global market, contact Irene G. Prescott at 505-867-3299 or email [email protected]. Registration Now Open The Leading Conference on Broadband Technologies and Services To Exhibit or Sponsor contact: Irene G. Prescott [email protected] | 505-867-3299 877-588-1649 | www.bbcmag.com FieldShield Multiport SmarTerminal Vision. Clarity. Clearfield. Industry’s most cost-effective and easy to deploy environmentally sealed fiber delivery system FieldShield Hardened Connector Verizon FiOS: Replacing the bulkiness of flat drop cables with the ease of use & cost reductions associated with pushable fiber Top-rated broadband service in America. Period. Find out if FiOS is available for your multifamily community. Contact Verizon Enhanced Communities 866.638.6066 www.verizon.com/communities www.ClearfieldConnection.com 800-422-2537 Verizon FiOS services not available in all areas. ©2009 Verizon. ® 106 | BROADBAND COMMUNITIES | www.broadbandcommunities.com | NOVEMBER/DECEMBER 2014 ADVERTISER INDEX / CALENDAR ADVERTISER 3-GIS PAGEWEBSITE 30www.3-gis.com AFL Telecommunications 32, 102 www.aflglobal.com Advanced Media Technologies 31, 99 www.amt.com AT&T 106www.att.com/communities BEC Technologies Broadband Communities Magazine Broadband Communities Summit Calix 21, 32, 102 www.bectechnologies.net 61, 68, 91, 102, 103 www.bbcmag.com Inside Cover Flap – 13, 33, 69, 79, 84, 106 www.bbcmag.com 33, 85, 102 www.calix.com/gigabit Clearfield 19, 33, 102, 106 www.Clearfield Connection.com CLIC 80 – 81, 102 www.localnetchoice.org Comcast 15, 33, 102 www.comcast.com/ xfinityccommunities Corning 33, 102, Back Cover http://cablesystems. corning.com/CentrixBuzz COS Systems 28, 34 www.cossystems.com/ service-zone Cox Communication 29, 34, 102 Crownduit www.cox.com 34, 75, 102 www.crownduit.com DASAN Networks 35, 74 www.dasannetworks.com DrayTek 23, 35 www.draytek.com Finley Engineering 102 www.fecinc.com FTTH Council, NA 70, 102 www.ftthcouncil.org Fujitsu 36www.fujitsu.com/telecom Great Lakes Data 36, 105 www.glds.com Maxcell 36www.maxcell.us Multicom, Inc 106 www.multicominc.com NiSC 17, 37, 102 www.NiSC.com OFS 37, 102 www.ofsoptics.com Pavlov Media Power & Tel Supply 25, 37, 102 www.pavlovmedia.com 38, 102, 106, Inside Back Cover www.ptsupply.com Preformed Line Products 38 www.preformed.com RVA, LLC 102 www.rvallc.com Spot On Networks 38 www.spotonnetworks.com ViewTEQ 38www.viewteq.com Verizon Enhanced Communities 106 www.verizon.com/ communities Broadband Communities (ISSN 0745-8711) (USPS 679-050) (Publication Mail Agreement #1271091) is published 7 times a year at a rate of $24 per year by Broadband Properties LLC, 1909 Avenue G, Rosenberg, TX 77471. Periodical postage paid at Rosenberg, TX, and additional mailing offices. POSTMASTER: Please send address changes to Broadband Communities, PO Box 303, Congers, NY 10920-9852. CANADA POST: Publications Mail Agreement #40612608. Canada Returns to be sent to Bleuchip International, PO Box 25542, London, ON N6C 6B2. Copyright © 2014 Broadband Properties LLC. All rights reserved. JANUARY 2015 13 – 15 Gigabit City Summit Henry W. Bloch School of Management Kansas City, MO www.gigagbitcitysummit.com 913-475-9885 FEBRUARY 2015 10 – 12 FTTH Conference 2015 – Europe EXPO XXI Warsaw, Poland +33 6 2590 2860 www.ftthconference.eu 22 – 26 2015 BICSI Winter Conference & Exposition Orlando World Center Marriott Resort & Convention Center Orlando, FL 813-979-1991 www.bicsi.org MARCH 22 – 26 OFC 2015 Los Angeles Convention Center Los Angeles, CA 202-416-1907 www.ofcconference.org APRIL 14 – 16 Broadband Communities Summit Renaissance Hotel Austin, TX 877-588-1649 www.bbcmag.com JUNE 29 – July 1 FTTH Conference Anaheim Convention Center Anaheim, CA 202-367-1173 www.ftthconference.com SEPTEMBER 29 – Oct 1 ECOC 2015 European Conference on Optical Communication Valencia, Spain + 33 (0) 169 81 6574 www.ecoc2015.org NOVEMBER/DECEMBER 2014 | www.broadbandcommunities.com | BROADBAND COMMUNITIES | 107 THE GIGABIT HIGHWAY Future-Proof Communities A next-generation network is a prerequisite for a flourishing community. By Heather Burnett Gold / FTTH Council Americas R ecently, in Chattanooga, Tenn., elected officials and local leaders from around the United States gathered to discuss a topic familiar to all of them: how to build a flourishing, sustainable community. This group is confronting the fact that the global economy has fundamentally changed in recent decades and the unit of production has shifted from atoms to bytes. So when they talked about the future of their communities, they focused on infrastructure – in particular, access to next-generation broadband networks. Chattanooga has begun to reorganize and thrive in part because of its gigabit-to-the-home fiber network. Community leaders, investors and entrepreneurs have seized on the infrastructure and used it to support a thriving local startup scene and the relocation of businesses. For instance, IT service firm Claris Networks moved its data center operations from Knoxville to Chattanooga to take advantage of its fiber network. City leaders nationally and internationally look to Chattanooga for guidance to build a Big Bandwidth community. Though Chattanooga is one of a kind, the benefits of the deployment and use of its next-generation fiber network are not. The FTTH Council’s recently released research found a 1.1 percent boost in GDP in communities where gigabit services were widely available. In dollar terms, the 14 communities where gigabit Internet services were available enjoyed approximately $1.4 billion in additional GDP more than other, similarly situated communities. That’s about the same amount eBay paid to acquire PayPal in 2002. In 2013, the ratings agency Fitch upgraded the bond ratings for Kansas City, Mo., from “negative” to “stable,” contending that the city’s growing gigabit offering was “already attracting a number of smaller Internet and data companies to the city and has the potential to make a significant economic impact.” Next-generation networks can be crucial in rural areas. Communities can compete on a level playing field to attract new businesses, schools can create distance-learning opportunities, medical professionals can provide cost-efficient remote diagnoses and care, and business owners can expand the market for their products beyond their neighborhoods to better compete in the global economy. However, building in rural areas can be cost prohibitive and may require pooling of resources and in-kind assets. Last summer, the FTTH Council made this case to the FCC, which agreed, launching its Rural Broadband Experiments program. Community and private interest has been high, as expected, and provisional awards were just announced. Broadband is not a panacea – even a gigabit, though it’s pretty great. It should be part of the toolbox that communities have available to build livable, sustainable, attractive communities. However, in too many places, for many reasons, lack of bandwidth is a barrier to innovation. The FTTH Council applauds the communities around the United States that are taking charge of their bandwidth destinies and finding ways to attract private providers, establish new models and in some cases build their own next-generation fiber networks. Over the past few years, it’s become evident that there is no one-size-fits-all solution. There are as many models for bringing bandwidth home as there are U.S. communities. The FTTH Council has long supported local choice – the ability of communities to take charge of their futures. Who knows better what they need to grow than the elected leaders, business interests and community members in a given place? Unfortunately, some states have outdated laws that prohibit certain models of building these networks and providing service. They don’t let communities explore creative partnerships with private companies, make use of underutilized assets or take advantage of models that have been incredibly successful in such places as Chattanooga, Kansas City and Wilson, N.C. The FCC is currently considering how, under existing laws, to foster efforts by municipal FTTH providers to bring the same benefits to surrounding communities. The FTTH Council supports this FCC initiative. The United States needs a critical mass of communities with world-leading bandwidth for economic development, job creation and global competitiveness in the 21st century. We at the FTTH Council want to assist the creation of empowered, FTTH communities in whatever way we can and look forward to more such communities sprouting up across the nation. Like Chattanooga, they will be communities with competent support systems that make life better for all. v Heather Burnett Gold is president of the Fiber to the Home Council Americas, a nonprofit association whose mission is to accelerate deployment of all-fiber access networks. You can contact her at [email protected]. Did you like this article? Subscribe here! 2014 108 | BROADBAND COMMUNITIES | www.broadbandcommunities.com | NOVEMBER/DECEMBER • AUSTIN SUMMIT EXPOSURE TO PEOPLE ACROSS THE INDUSTRY “Good industry overview, exposure to people across the industry and industry information.” — Eric Friedman, President Housing and Community Solutions, Inc. SPEAKERS WERE AWESOME “All the speakers were awesome and the presentations were great.” — Donna Sullivan, Technical Assistant Director NC Department of Commerce – NC Broadband TE ENABLES MORE FIBER SERVICES Installed in outside plant cabinets, TE’s plug-and-play CWDM modules give service providers the ability to combine (or multiplex) two or more signals with different wavelengths in one common fiber. The same module can be used to separate the wavelengths (de-multiplex) at the remote location. Surrounded by superior cable management, CWDM modules require less time to route fiber in the cabinet, saving operators time and cost. Contact Power & Tel for more information on TE solutions at 1-800-238-7514 or [email protected] Make plans to attend the 2015 Summit now. 319163AE ©2014 TE Connectivity Ltd. family of companies. All Rights Reserved. CENTRIX™ PLATFORM The Centrix™ Platform, Corning’s next-generation switch center solution, combines extreme flexibility and simplicity with the ultimate in density. With superior jumper management and an innovative fiber routing system, the Centrix Platform is a cross-functional solution that meets the requirements of multiple application spaces. For more information visit http://opcomm.corning.com/centrixbuzz.html © 2014 Corning Optical Communications. CRR-222-AEN / November 2014