opticalcommunity sept00

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Information about opticalcommunity sept00

Published on November 15, 2007

Author: Megane

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CANARIE “Community Broadband Networks” Optical Networks for the Rest of Us The Customer Empowered Networking Revolution” :  CANARIE “Community Broadband Networks” Optical Networks for the Rest of Us The Customer Empowered Networking Revolution” http://www.canarie.ca http://www.canet3.net Background Papers on Gigabit to The Home and Optical Internet Architecture Design Available Optical Internet News list: Send e-mail to Bill@Canarie.ca Bill.St.Arnaud@canarie.ca http://www.canarie.ca/~bstarn Tel: +1.613.785.0426 “A proposed strategy to make Canada the most networked country in the world and the first to have low cost Gigabit Internet infrastructure available to virtually all schools, hospitals, libraries and businesses by 2005”:  “A proposed strategy to make Canada the most networked country in the world and the first to have low cost Gigabit Internet infrastructure available to virtually all schools, hospitals, libraries and businesses by 2005” CANARIE Inc:  Mission: To facilitate the development of Canada’s communications infrastructure and stimulate next generation products, applications and services Canadian equivalent to Internet 2 and NGI private-sector led, not-for-profit consortium consortium formed 1993 federal funding of $300m (1993-99) total project costs estimated over $600 M currently over 140 members; 21 Board members CANARIE Inc Canada & the Optical Age :  Canada & the Optical Age World leader in optical networking - JDS Fitel, Nortel, Cambrian, Positron Fiber Systems, CISCO Canada, PMC Sierra, QNX Over 75% of the world’s Internet traffic is carried on equipment made in Canada Nortel Optical Transport made in Montreal Newbridge ATM switches made in Ottawa JDS Fitel optical components made in Ottawa CISCO GSR12000 made in Ottawa, Toronto and Vancouver Many exciting new startups – Tropic, Edgeflow, Nudesign, NuWave, etc etc CA*net 3 - A network for basic research unparalleled anywhere in the world Canada could be poised to be a world leader in the “optical age” Silicon Valley was the capital of the “silicon age” Britain was the capital of the “industrial age” Canada has the critical industrial base for the optical age CA*net 3 National Optical Internet:  GigaPOP CA*net 3 National Optical Internet Vancouver Calgary Regina Winnipeg Ottawa Montreal Toronto Halifax St. John’s Fredericton Charlottetown ORAN BCnet Netera SRnet MRnet ONet RISQ ACORN Chicago STAR TAP CA*net 3 Primary Route Seattle New York Los Angeles CA*net 3 Diverse Route Deploying a 4 channel CWDM Gigabit Ethernet network – 700 km Deploying a 4 channel Gigabit Ethernet transparent optical DWDM– 1500 km Multiple Customer Owned Dark Fiber Networks connecting universities and schools 16 channel DWDM -8 wavelengths @OC-192 reserved for CANARIE -8 wavelengths for carrier and other customers Consortium Partners: Bell Nexxia Nortel Cisco JDS Uniphase Newbridge Condo Dark Fiber Networks connecting universities and schools Condo Fiber Network linking all universities and hospital Customer Empowered Networks:  Customer Empowered Networks School boards and municipalities throughout North America are deploying their own dark fiber networks in partnership with next generation carrier Individual institutions – the customers – own and control their own strands of fiber Fiber are configured in point to point private networks; or Connect to local ISP or carrier hotel Low cost LAN architectures and optics are used to light the fiber Control and management of the optics and wavelengths is under the domain of the LAN customer at the edge, as opposed to the traditional carrier in the center These new concepts in customer empowered networking are starting in the same place as the Internet started – the university and research community. Customers will start with dark fiber but will eventually extend further outwards with customer control and ownership of wavelengths Extending the Internet model of autonomous peering networks to the telecom world What is happening elsewhere?:  What is happening elsewhere? California CDP project plans to connect up all schools to research and education backbone – CALren-2 Cost $US 32 million per year next 10 years Holland plans to connect up 12,000 schools with dark fiber Schools will be connected to national research and education backbone – SURFnet 5 Alberta has a major RFP to connect up 3800 public institutions in the province Sweden plans $US 2-3 billion for connecting municipalities and rural areas Iceland is building fiber network to all their schools which private sector will take to the home Finland and Norway have similar plans Examples of CEN Customer Empowered Networks:  Examples of CEN Customer Empowered Networks Universities in Quebec are building their own 3500km “condominium” fiber network in partnership with 6 next gen carriers- $US 2million Will deploy and manage their own optics and long haul transmission gear Universities in Alberta are deploying their own 400 km 4xGbe dark fiber network - $US 200K Deploy and manage their own optics and long haul transmission gear Chicago is building a fiber networking linking all public sector institutions - $US 250m City of Montreal is second most fibered city in the world because of municipal owned open access conduit In Ottawa is deploying a 85km- 144 strand “condominium” network connecting 26 institutions – cost $1m US Peel County – Missassuaga & Brampton has built a 200km public sector fiber network - $US 5m Many other cities including Ashland OR, Halifax, Toronto are looking at similar initiatives Market Drivers:  Market Drivers First - low cost Up to 1000% reduction over current telecom prices. 6-12 month payback Second - LAN invades the WAN – no complex SONET or ATM required in network Network Restoral & Protection can be done by customer using a variety of techniques such as wireless backup, or relocating servers to a multi-homed site, etc Third - Enables new applications and services not possible with traditional telecom service providers Relocation of servers and extending LAN to central site Out sourcing LAN and web servers to a 3rd party because no performance impact IP telephony in the wide area (Spokane) HDTV video Fourth – Allows access to new competitive low cost telecom and IT companies at carrier neutral meet me points Much easier to out source servers, e-commerce etc to a 3rd party at a carrier neutral collocation facility What is condominium fiber?:  What is condominium fiber? A number of organizations such as schools, hospitals, businesses and universities get together to fund and build a fiber network Carrier partners are also invited to be part of condominium project Several next generation carriers and fiber brokers are now arranging condominium fiber builds IMS, QuebecTel, Videotron, Cogeco, Dixon Cable, GT Telecom, etc etc Fiber is installed, owned and maintained by 3rd party professional fiber contractors – usually the same contractors used by the carriers for their fiber builds Each institution gets its own set of fibers, at cost, on a 20 year IRU (Indefeasible Right of Use) One time up front cost, plus annual maintenance and right of way cost approx 5% of the capital cost Institution lights up their own strands with whatever technology they want – Gigabit Ethernet, ATM, PBX, etc New long range laser will reach 120 km Ideal solution for point to point links for large fixed institutions Payback is usually less than 18 months Slide11:  Observatoire Mont-Mégantic Val d’Or/Rouyn Quebec University Condo Network Slide12:  St-Laurent/Vanier Lanaudière Maisonneuve Marie-Victorin Champlain Rosemont Sorel-Tracy Montmorency Édouard-Montpetit Vieux-Montréal Bois-de-Boulogne Ahuntsic Lionel-Groulx Vers Québec Gérald-Godin John-Abbott André-Laurendeau Dawson Montreal Public Sector Condominium Networks Slide13:  Schoolboard Condominium Builds Slide14:  List of Schoolboard Fiber Builds Typical Capital Costs:  Typical Capital Costs Fixed One Time Capital Costs Include Management, engineering and construction costs Negotiating support structure agreements Fiber optic cables Fusing of fibers OTDR sweeps, Premise termination, etc. Average total cost between $7 and $15 per meter as follows: Engineering and Design: $1 - $3 per meter for engineering, design, supervision, splicing Plus Installation: $7 to $10 per meter for install in existing conduit; or $3 to $6 per meter for install on existing poles Plus Premise termination: Average $5k each Plus cost of fiber: 15¢ per strand per meter for 36 strands or less 12¢ per strand per meter for 96 strands or less 10¢ per strand per meter 192 strands or less 5¢ per strand per meter over 192 strands Examples of Dark Fiber costs:  Examples of Dark Fiber costs University network Urban Fiber Builds Varennes: 50 km - $406K (maintenance $26K/year) Montreal East: 14 km - $120K (maintenance $9K/year) Laval: 33km - $213K (maintenance $15K/year) University network Rural Fiber Builds Sorel: 54km - $266K (maintenance $19K/year) Megantic: 40km -$273K (maintenance $14K/year) Schoolboards Victoriaville school board -Average price for fiber(s) $2 - $7 per meter Spokane School District - $US 800/mo for first 5 years then $US 400/mo Over 50 schools Stockholm - $1200/mo – over 100 schools Las Vegas School district – 240 schools – Telcordia (Bellcore) prime contractor Many, many others in the works Companies like Telcordia (Bellcore), IBM, etc are now leading development of dark fiber networks for schools Condo Fiber Build Examples:  Condo Fiber Build Examples Des affluents: Total cost $1,500,00 ($750,00 for schools) 70 schools 12 municipal buildings 204 km fiber $1,500,000 total cost average cost per building - $18,000 per building Mille-Isles: Total cost $2,100,000 ($1,500,000 for schools) 80 schools 18 municipal buildings 223km $21,428 per building Laval: Total cost $1,800,000 ($1,000,000 for schools) 111 schools 45 municipal buildings 165 km $11,500 per building Peel county: Total cost $5m – 100 buildings Cost per building $50,000 Peel County Municipal Fiber Network:  Peel County Municipal Fiber Network Mississauga, Brampton, Pell 200 km of Fibre 96 strand backbone “Enough for small country” 12-60 strands elsewhere 12,000 strand-kilometers Laid end-to-end = Victoria to St. John’s …...and back again Ottawa Fiber Condominium:  Ottawa Fiber Condominium Consortium consists of 16 members from various sectors including businesses, hospitals, schools, universities, research institutes 26 sites Point-to-point topology 144 fibre pairs Route diversity requirement for one member 85 km run $11k - $50K per site Total project cost $CDN 1.25 million Cost per strand less than $.50 per strand per meter 80% aerial Due to overwhelming response to first build – planning for second build under way Ottawa Original Estimates:  Ottawa Original Estimates Original Engineering Estimates Original estimates turned out to be 10% higher than RFP responses Estimated cost to connect 22 institutions with 6 fibers to each institution in a star configuration Total cost $615,000 or approximately $30,000 per institution “on average” Actual costs range from $5K to $60K depending on how far institution is from center of star in downtown Ottawa If condo fiber contractor were to double capacity of network (i.e.12 strands to each customer) cost of project would only increase by 10% Or doubling number of participants would increase cost by only 10% (plus cost of laterals for additional institutions) By doubling number of participants average cost would be less than $20,000 per institution Ultimately fiber costs could get as low as $1000 per institution if every building in the city was connected with fiber Slide22:  Newbridge CRC CISCO OCRI Nortel O-C School Board Algonquin O-C Catholic Carleton O Heart Civic Oconnor CO 55 Metcalfe Ottawa U Ottawa Carleton Region Conseil Des Ecoles NRC Telesat Ottawa General March Carling Baseline Greenbank Merivale Merivale Bronson Laurier Rideau St. Laurent Smythe Blair Rd 20 19 18b 18a 17 16 15 14 13 12 11a 11b 9b 10 9a 6 5a 5b 3 8 7a 4 2 1b 1c 1a 1d 7b Section 1a – 96 strands Section 1b – 12 strands Secion 1c – 12 strands Section 1d – 96 strands Section 1e – 12 strands Section 2 – 36 strands Section 3 – 12 starnds Section 4 – 24 strands Section 5a – 24 strands Section 5b – 12 strands Section 6 – 12 strands Section 7a- 12 strands Section 7b – 12 strands Section 8 – 12 strands Section 9a – 96 strands Section 9b – 72 strands Section 10 – 12 strands Section 11a – 12 strands Section 11b – 60 strands Section 12 – 12 strands Section 13 – 48 strands Section 14 – 12 strands Section 15 – 48 strands Section 16 – 12 strands Section 17 – 36 strands Section 18a – 36 strands Section 18b – 24 strands Section 19- 12 strands Section 20- 12 strands 1e Main Splice Box for Cross Connection Of Fibers Between Participating Institutions Splice Box Note: This a reference installation. Final Configuration will vary depending on number of participants and additional point to point fiber requirements. Section Cost Detail:  Section Cost Detail Logical Layout of Topology:  Logical Layout of Topology Newbridge CRC OCRI CISCO Nortel Carleton Ottawa U NRC Telsat In reference model each institution has been assigned 6 strands to terminate on, or about 55 Metcalfe St Example: Carleton U has 6 strands 2 would cross connect to NRC/ONet 2 strands would connect directly to OttawaU 2 strands would connect directly to CRC (At NRC Carleton could interconnect at layer 3 with other organizations Typical Payback for school (Real example – des affluents – north of Montreal):  Typical Payback for school (Real example – des affluents – north of Montreal) DSL to 100 schools - $400 per month per school Over 3 years total expenditure of $1,440,000 for DSL service Total cost of dark fiber network for 100 schools $1,350,000 Additional condominium participants were brought in to lower cost to school board to $750,000 School board can now centralize routers and network servers at each school Estimated savings in travel and software upgrades $800,000 Payback typically 8 –16 months Independent Study by Group Secor available upon request Slide26:  Reduction in the number of servers Advantage of CEN for Business:  Advantage of CEN for Business Significant reduction in price for local loop costs No increase in local loop costs as bandwidth demands increase Ability to outsource LAN and web servers to distant location as LAN speeds and performance can be maintained over dark fiber Access to lower cost competitive service providers at carrier neutral hotels New entrants cannot afford high cost of building out their own fiber networks Even small businesses with less than 20 employees can realize significant savings and benefits Advantage of CEN to business:  Advantage of CEN to business Central Office Central Office Today: Customer pays 2 telcos for SONET connections Carrier managed SONET ring Customer Owned Dark Fiber Long reach lasers SONET Mux and ADM ISP ISP ISP ISP Tomorrow: Multiple Customer owned dark fiber links to ISPs $50K one time Unlimited Bandwidth $50K one time Unlimited bandwidth Monthly cost Fixed Bandwidth CEN versus SONET:  CEN versus SONET Customer Owned Dark Fiber Low equipment costs – mostly fused fiber, rarely any active devices Low labour costs – only fiber maintenance Fiber technology does not change Costs can be amortized over 20 years Most costs are capital vs operational The only true future proof technology Reliability obtained through purchase of 2 separate dark fiber route or wireless link, etc Can take advantage of economies of scale with large fiber builds Simple extension of LAN network Unlimited bandwidth “Good enough” is adequate for single entity Carrier SONET network High equipment cost – SONET muxes, etc High labour costs for SONET muxes, CPE equipment etc Equipment changes every 5 years Costs must be amortized in 5 years SONET soon may be replaced by GbE, DPT Requires SONET ring to deliver 99.999 reliability Limited economies of scale with larger SONET OC-192 Customer can not “capitalize” carrier service CPE equipment required from LAN to WAN Common carrier needs “perfect” network Advantage of CEN for high rise office buildings:  Advantage of CEN for high rise office buildings Building risers increasingly becoming congested because so many new entrant carriers want access to building Building owners are now insisting they will install fiber in risers from basement to tenants Some building owners are extending fiber all the way to 2 or more collocation facilities Tenants get to lease 2 or more strands in the fiber bundle to the collocation facilities Tenants can then make independent deals to connect to the service provider of their choice Tenants can then out source their web, network servers to 3rd party Advantage for CEN for cities:  Advantage for CEN for cities In downtown core minimizes digging up streets If N carriers are trying to deploy service then number of times roads has to be torn up is N squared However with condominium fiber road only has to be torn up once Produces a competitive market place and level playing field New competitive carrier can meet customers at carrier neutral collocation facilities Eliminates market advantage of incumbents In suburban areas eliminates duopoly of cable and TV companies The first company to install fiber into suburban neighborhoods will likely have a natural monopoly In Stockholm home owners have a choice of 4 cable companies Makes cities a much more attractive place for new high tech businesses and service Opportunity for new revenue stream for city New entrant fiber companies are willing to pay city percentage of revenue for access to right of way Critical role for governments:  Critical role for governments Customer Empowered Networks increases facilities based competition, levels the playing field and provides greater choice to the consumer One of government’s key mandates Governments might be able to encourage by CEN by giving preferential access to ROW to those fiber installers who will sell condominium fiber at an agreed upon price E.g Dublin OH Stockholm Governments can also encourage building carrier neutral collocation facilities In downtown cores will likely be done by private sector In suburbs will probably have to be municipal facility like school board office, etc The issue of ROW:  The issue of ROW Is ROW a unlimited public resource or a limited scarce resource? When there were only one monopoly ROW was seen as unlimited public resource that was needed to provide a universal service But with many new carriers wanting to install facilities it is becoming a scarce resource Cities are mandating moratorium on tearing up roads 5 years on major roadwork 3 years on re-surfacing Private railway and road bridges are charging enormous fees for ROW The Federal Government is auctioning off wireless spectrum to the highest bidder Cannot cities auction off spectrum in the ground? The spectrum in the ground is scarcer than air Should preference be given to bidders who provide CODF? 2 Different Views:  2 Different Views Traditional Telco Network “Ring of Rings” 99.999% reliability only in the SONET Ideal for carriage of legacy traffic “Highest” common denominator technology and pricing Driver is bandwidth efficiency ISP A ISP B ISP C CO Customer Empowered Network “Warp and Woof” Separate dark fiber networks built by different competing organizations Customer responsible for building rings and establishing reliability Ideal for LAN and Internet traffic Driver is congestion avoidance SONET ring 3 separate dark fiber builds ACME Dark Fiber Inc Fiber R Us Inc Non Profit Fiber Inc ISP B ISP C The biggest challenge of all… To foster and accelerate broadband Internet to the home:  The biggest challenge of all… To foster and accelerate broadband Internet to the home Historical Reference Points:  There is a clear trend in all formerly monopoly services to move to unbundled competitive services Roads and highway systems vs railways: infrastructure was largely “public”, but the services (e.g. trucking) were private and competitive Electrical distribution systems: regulated monopolies (unbundling is on horizon) Gas distribution systems: regulated monopolies (unbundling is well underway) Legacy telecommunications systems: moving to unbundled fiber and facilities based competition Historical Reference Points Facilities based competition in the residential neighborhood?:  Facilities based competition in the residential neighborhood? Facilities based competition is alive and well in downtown core The biggest challenge for governments is manage and coordinate the digging up of streets Outside of downtown in big cities Usually only a monopoly telecom provider At best a duopoly How do we introduce facilities based competition into this market (or at least come as close as possible to true facilities based competition)? As well how can we assure scalable high speed Internet services to the home that eventually will support Gigabit speeds or higher? Gigabit to the home :  Gigabit to the home The need for Gigabit Internet to the home is coming much sooner than people realize The Internet forecasts have a history of significantly underestimating demand Universities and schools are being overwhelmed by Napster and iMesh Thousands of uploads and downloads of 1- 10 Mbyte MP3 Thousands of uploads and downloads of 1 – 10 Gbps MPEG1 movies Students are coming home from universities and schools used to high speed Internet access I.e. > 10 Mbps Napster – iMesh expected to shortly overwhelm cable modems and DSL In the very near future will be able to download 10-30 MP3 files into a SONY memory stick and plug in the car or your Walkman Consumer will want to download those MP3 files almost instantaneously The solution – Gigabit Internet to the Home Slide39:  Example: A music CD contains 660 Mbytes of data. How long would it take to send this from Palo Alto to San Francisco? Method 56 Kilobits/second PC Modem 1.5 Mb/s Commercial T1 Service 500 Kb/s Cable Modem 10 Mb/s Fiber To The Home 100 Mb/s Fiber Optic Service Transfer Time 26.2 Hours 2.93 Hours 59 Minutes 8.8 Minutes 53 Seconds 50 Minutes 55 MPH Automobile What that bandwidth? Gigabit to the Home applications:  Gigabit to the Home applications The same applications that necessitate high bandwidth for businesses and schools NOT average bandwidth, but peak bandwidth for LAN performance and speeds to quickly download and upload data, video and audio files The Internet is like the sewer system A sewer system capacity has to be designed for peak load and not average load E-mail or FTP movies and videos PCs will soon have 30 Gbyte drives No need to stream video and require QoS DVD or HDTV video - requires 100- 400 Mbytes compressed Home Cache on Home LAN network Pre-cache or predictive cache TV shows, movies, shopping catalogs A possible framework for the last mile:  A possible framework for the last mile The R&E community leadership in customer empowered networks is pointing to a possible solution for the last mile to the home An architecture concept also based on open access customer owned dark fiber using well known LAN architectures Many competitive service providers share in the cost of condominium fiber Ensures facilities based competition Telcos are unlikely to build FTTH in existing neighborhoods because of the huge capital investment and ROI needed on that investment Solutions for high speed Internet to the home may not come from the carriers but from the R&E community The basic assumptions:  The basic assumptions The good, the bad and the ugly.. Monopolies are bad Duopolies are ugly Facilities based competition is good The private sector, in an open competitive market, is far more effective at responding to consumer’s needs and introducing new services at lower prices than any kind of government regulation But government has a responsibility to foster competition and ensure a level playing field Where a natural monopoly exists government has a responsibility to regulate that monopoly, but only as a last resort First it should make every attempt to develop mechanisms for introducing private sector competition rather than depending on legislative fiat Regulation should be seen as a last resort Preliminary Analysis:  Preliminary Analysis Early Fiber to the Home (FTTH) was too expensive because it assumed all services would be converged – date, voice and video expensive terminal equipment required to segregate voice, data and video services at the home but voice traffic is going wireless and broadcast is going by satellite Lifeline voice can significantly increase costs DC battery power, 911 services The big driver for residential broadband is not voice or video It is the Internet Very soon Internet will carry video and second line voice So instead of building a converged network such as FSAN, HFC, etc build an Internet network only Divergence rather than Convergence may be the key to low cost FTTH Gigabit Internet to the Home:  Gigabit Internet to the Home With condominium fiber builds multiple carriers share in the cost of fiber build out to network nodes serving approximately 250 homes Governments can help accelerate the process by funding public institutions like schools and libraries to acquire customer owned fiber Build an architecture that guarantees competitive equal access to every neighborhood node It is impractical to have multiple carriers own individual strands to each and every home: Therefore let the customer have title to individual fiber from the residence to the neighborhood node The customer connects to the service provider of their choice at the neighborhood node The result is third commercial network running in parallel to telephone and cable for high speed Internet only Avoids regulatory and technical issues of 911, number portability, etc Encourages SMEs and entrepreneurs to build the infrastructure Customer premise device is very simple and cheap Typical Pole to Home Wiring:  Typical Pole to Home Wiring Home installation is similar to cable modem but uses fiber. Gigabit to the Home:  Gigabit to the Home R&E network ISP B ISP C University School Splice Box Municipal or Private Sector Open Access Fiber Trunk Up to 15 km Customer owns fiber strand all the way to ISP X X X 864 strands ISP D ISP E Colo Colo Facility The Architecture -1 :  The Architecture -1 A community consortia would put together a plan to fiber up all public sector buildings in their community A community can be a province, a municipality, village, etc A fiber splice box that terminates the fiber at the street side beside each public sector building such as school, hospital, library is called a “Node” The fiber build consortia must insure that potential facilities exist near the for private sector equipment to connect up future home owners – colo facility Small colo facility in basement of school or separate jiffy boxes for each vendor, etc Private sector responsible for costs of such a facility Public sector buildings will have dedicated fiber strands that connect to a “Supernode” which is a fiber splice box on the street beside outside of major public sector central facility such as school board office, city hall, university, etc The fiber build consortia must insure that facilities exist near the Supernode for the private sector to install equipment to service home owners and businesses – colo facility At least one carrier neutral collocation facility plus central offices and head end Private sector responsible for costs of such facilities The Architecture - 2:  The Architecture - 2 Additional fibers are made available from the Supernode to all Nodes such that competitive service providers can purchase such fiber to the node Service provider can extend fiber to individual home owners or businesses at a later date if title and ownership of the fiber belongs to the customer; or Service provider can offer wireless connectivity from node Service provider can offer traditional “open access” HFC, PON or VDSL connectivity A satellite network or provincial research and education network would connect the Supernodes to the closest CA*net 4 GigaPOP. The CA*net 4 network would be provide national and international connectivity for all public sector traffic Application grids of “e-commerce” , forestry, high performance computing The additional strands that would be used by private sector to provide services to home would be technology “neutral” service provider could deploy any technology they want – FSAN, HFC, GbE, wireless, etc Networked Nation:  Networked Nation CA*net 4 Provincial research and education network Usually one GigaPOP per province Usually one access facility in every major town and city School board office City Hall University School Hospital Library School School Colo Colo Option B: Home owners are aggregated at node by service provider of their choice Option A: Home owners and businesses have fused connections all the way to service provider at supernode SuperNodes Nodes Colo Colo Splice Box Homes Splice Box Commercial Internet Commercial Internet The architecture:  The architecture School School board office School Central Office Central Office For Wireless Company Customer Owned Fiber Schoolboard Owned Fiber Carrier Owned Fiber Cable head end Average Fiber Penetration to 250 homes Colo Facility Benefits to Industry:  Benefits to Industry For cablecos and telcos it help them accelerate the deployment of high speed internet services into the community Currently deployment of DSL and cable modem deployment is hampered by high cost of deploying fiber into the neighbourhoods Cable companies need fiber to every 250 homes for cable modem service, but currently only have fiber on average to every 5000 homes Telephone companies need to get fiber to every 250 homes to support VDSL or FSAN technologies Wireless companies need to get fiber to every 250 homes for new high bandwidth wireless services and mobile Internet It will provide opportunities for small innovative service providers to offer service to public institutions as well as homes For e-commerce and web hosting companies it will generate new business in out sourcing and web hosting For Canadian optical manufacturing companies it will provide new opportunities for sales of optical technology and components PEI Fiber Network Possible Topology:  PEI Fiber Network Possible Topology Supernode Node PEI model:  PEI model Assume all supernodes (school board offices, city halls, etc) are along arterial highway (500 km) and interconnected with 48 strands @ $13/m Cost of provincial research and education backbone - $6.5m This cost would be provincial responsibility Assume all nodes (schools, libraries, hospitals) are along collector highways (850 km) and interconnected with 24 strand @ $10/m Cost of connecting nodes - $8.5m (half the fibers reserved for future connection to home owners) so only $4.25m is charged to public sector Based on Alberta density of 3800 public sector buildings on population of 2m, then PEI there would 250 public sector buildings Average cost to bring fiber to every node - $34,000 But half of fibers are to be used for connectivity to home, so average cost per public sector building then $17,000 which would be paid out of cost savings Assume all other roads (3600 km) go by all homes and farms with 12 strand fiber @ $8/m Cost of going by all homes and farms $28.8m There are 47,000 dwellings in PEI, so cost to go by each home $612. Cost to connect up home would be less than $20/mo with 4 year amortization Examples:  Examples Canberra Tansact was to be city wide VDSL – now looking at GbE with fiber $500 to go by each home New housing developments are going with fiber and FastE or GigE Brossard, FutureWay, Houston, Palo Alto etc Many new startups in the GITH and GITB market Worldwidepackets – www.worldwidepackets.com - $50/mo for Gbe Homefiber – www.homefiber.com Grant County, WA Carriers are not the only decision maker in the last mile:  Carriers are not the only decision maker in the last mile Governments and consumers are becoming more active voice in determining the future of broadband to home Do not assume that carrier best technical solution is the only approach Open access is becoming a critical political issue Consumers want more than duopoly of cable and telco Facilities based competition the best Municipalities object to their streets being torn up Dig once – bury lots of fiber Residents object to street furniture and antennae An important Role for Government:  Governments promote the framework for GITH networks by funding schools, universities, libraries, hospitals and municipal buildings as first customers and early adopters of dark fiber and optical networks Private sector leverages that investment by government to promote high speed Internet access to schools and universities to extend the fiber to the home Electric utility companies, municipal governments, CLECs, SMEs, entrepreneurs, as well as traditional telcos and cablecos can participate as providers, provided they subscribe to the architecture of open access, facilities based competition through dark fiber (or wavelengths) Emphasize the development and use of technology that specifically addresses the new architecture and the last mile, which must therefore be open, cheap and Internet-only An important Role for Government CANARIE's 6th Advanced Networks Workshop "The Networked Nation" November 28 and 29, 2000 Palais des Congrès Montreal, Quebec - Canada :  CANARIE's 6th Advanced Networks Workshop "The Networked Nation" November 28 and 29, 2000 Palais des Congrès Montreal, Quebec - Canada "The Networked Nation", will focus on application architectures ("grids") made up of customer owned dark fiber and next generation Internet networks like CA*net 3 that will ultimately lead to the development of the networked nation where eventually every school, home and business will have high bandwidth connection to the Internet. Three tracks: Customer owned dark fiber for schools, hospitals, businesses and homes. Next generation optical Internet architectures that will be a natural and seamless extension of the customer owned dark fiber networks being built for schools, homes and businesses. "application grids", which are a seamless integration of dark fiber and optical networks to support specific collaborative research and education applications. Conclusion:  Conclusion Many governments have recognized the importance of access to low cost dark fiber as fundamental economic enabler It will be the 21st century equivalent to the roads and railways that were built in the 20th century

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