Stockholm Tutorial June 2001

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Information about Stockholm Tutorial June 2001

Published on March 12, 2008

Author: WoodRock


CANARIE “Building Condominium Fiber Networks For High Speed Internet Access” :  CANARIE “Building Condominium Fiber Networks For High Speed Internet Access” Tel: +1.613.785.0426 Outline:  Outline Overview and introductions Canada’s community fiber programs – Bill St Arnaud Stockholm’s Stokab – Anders Comstedt Sweden’s ICT programs - Anne-Marie Eklund-Lowinder Tutorial Objectives :  Tutorial Objectives To provide real world case studies on community and municipal fiber networks To provide information sources and pointers to organizations that will provide assistance and/or funding Issues facing municipalities:  Issues facing municipalities Many carriers want to deploy fiber networks Each carrier will deploy many conduits and or fiber and yet only use a small percentage Municipalities need to coordinate fiber builds so as to minimize tearing up of road and/or obstruction of traffic Once a fiber build is done many municipalities insist on a 5 year freeze on any future digging up of road Gives unfair market advantage to carriers who got in under the wire or have existing infrastructure In fact this is strategic part of many carrier’s business plan Carriers want to go for low hanging fruit in downtown cores Little interest in serving low profit residential neighbourhoods Outside of the downtown core unlikely to have many competitive fiber builds Historical Reference Points:  There is a clear trend in all formerly monopoly services to move to unbundled competitive services Roads and highway systems vs railways: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is well underway) Legacy telecommunications systems: moving to unbundled fiber and facilities based competition Historical Reference Points Government intervention? :  Government intervention? As much as possible governments should have minimum intrusion into the marketplace. However, sometimes government intrusion in the marketplace will produce significantly greater benefits to the economy and society otherwise "to do nothing would be to do harm“ E.g. bridges displace competitive ferry service operations Free trade disrupted business plans of many private sector companies Opening up of long distance disrupted business plans of incumbent telcos Private sector competition in a genuine competitive open market is generally viewed as a good thing. Monopolies are bad Duopolies are ugly Therefore should governments intrude into the marketplace to actively promote facilities based competition? There is no question such a disruption will impact existing business models and investment plans. But will the overall benefit be significantly better for the municipality? 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 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 Municipal Fiber Architecture:  Municipal Fiber Architecture Two key components – Carrier Neutral IX and condominium fiber A municipal issues a RFP to fiber up all public sector buildings in their community with condominium fiber A fiber splice box that terminates the fiber at the street side nearby each public sector building such as school, hospital, library is called a “Node” Public sector buildings will have dedicated fiber strands that connect to a “Carrier Neutral IX” which is a fiber splice distribution central facility near existing school board office, city hall, university, central office, etc From the Carrier Neutral IX dedicated private fibers go to participating carriers Additional fibers are made available from the Carrier Neutral IX to all Nodes such that competitive service providers can purchase fiber to the node at some future date Competitive service providers can extend fiber or wireless connections to homes and businesses around the school Competitive service providers can locate equipment at carrier neutral IX Municipal Architecture:  Municipal Architecture School School board office School Telco Central Office Central Office For Wireless Company VDSL, HFC or Fiber Provisioned by service provider Condominium Fiber with separate strands owned by school and by service providers Carrier Owned Fiber Cable head end Average Fiber Penetration to 250-500 homes Colo Facility 802.11b Business Carrier Neutral IX Node Advantages:  Advantages Municipality saves significantly on current telecom costs Chicago sees immediate 20% reduction Other cities seen 50%- 75% Makes the municipality “21st century” ready Attracts new businesses in multimedia, services, etc Reduces cost for deploying fiber into neighbourhoods for carriers Lowers barriers of entry for new carriers and creates competitive open environment 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 RFP models:  RFP models In normal RFP for telecom services municipality encourages responses from condominium fiber suppliers Municipality issues RFP to private sector for a municipal wide condominium fiber network where contractor commits to selling strands of fiber at an agreed upon price before and after the build. In turn the municipality will direct all municipal telcom business to the winner bidder and provide access to all municipal owned ducts – Chicago CivicNet model Municipality issues RFP to private sector for a municipal condominium fiber network, but municipality owns all strands of fiber and sells them to end users or competitive carriers as required – Alberta SuperNet model Municipality uses MAA to force fiber installers to build condominium fiber networks Negotiating issues:  Negotiating issues Offering commodity Internet bandwidth business as a carrot. Trading municipal right-of-way for condominium fiber Leverage the tax benefits for fiber builder of selling dark fiber vs leasing. Capitalize the telecom budget by moving monthly telecom budget into capital Deal with fiber builders rather than carriers. Most fiber builders are construction companies who make their money on the construction contract. Offer upfront financing deals. Some fiber builders are willing to do deals where community may pay 50%- 95% of the fiber build costs. The fiber builder does an overbuild and as the additional strands are sold to businesses or other carriers, a percentage of the profits are returned to the school. Negotiate umbrella agreements for a large number of public sector institutions across a region. The institutions contract directly with the carrier or fiber builder, but the terms and conditions are set in contract negotiations with the umbrella organization that represents the collective interests of the institutions. Slide15:  Province wide network of condominium fiber to 420 communities in Alberta Guaranteed cost of bandwidth to all public sector institutions $500/mo for 10 Mbps, $700/mo for 100 Mbps Network a mix of fibre builds and existing supplier infrastructure (swap/buy/lease) Condominium approach: All suppliers can Buy (or swap) a share of the fibre (during build or after) Lease bandwidth at competitive rates GOA has perpetual right to use (IRU) Ownership will be held at arms length GOA/stakeholder rates are costs to run divided over users Because of fibre capacity, bandwidth can be made available to businesses at urban competitive rate Total cost $193m Bell Intrigna prime contractor Alberta SUPERnet Slide16:  Extended Area 372 communities GOA/stakeholder needs Proceeds from businesses (urban benchmarked rates) to GOA to further network Base Area 48 communities GOA/stakeholder needs Business proceeds to Bell (urban benchmarked rates) - $143 Million GOA - 100% GOA IRU - $50 Million GOA - 33%GOA IRU - $102 Million Bell - 67% Bell IRU Alberta SUPERnet IRUs Slide17:  Current (Typical) Residences 56 Kbps dial Internet ($85/Month) No high speed Internet Businesses Some T1 Facilities ($2000/Month average - rates distance sensitive) Some high speed business service on special setup arrangement Future (Everywhere) Residences High speed DSL residential Internet at urban rates ($40/month) Businesses High speed business services available at competitive urban rates (eg $820/month - T1) Higher speeds at comparable rates RURAL COMMUNITIES Alberta SUPERnet Impact National Broadband Task Force:  National Broadband Task Force Mandate: To map out a strategy and advise the Government on best approaches to make high-speed broadband Internet services available to businesses and residents in all Canadian communities by the year 2004. To ensure Canada’s competitiveness in a global economy To address the Digital Divide To create opportunities for all Canadians 35 members including carriers, educators, librarians, communities, equipment manufacturers, etc Chair – David Johnston Slide19:  CivicNet - A City-Wide Condominium Fiber Project connecting up 1600 public sector institutions Oriented to Development of Backbone Infrastructure With Gateways to Tributary Systems More Fiber in More Places Faster Ubiquitous, Pervasive: 1,600 Locations E-Z High-Performance Low-Cost Internet Connectivity Foundation = Existing City Fiber Builds Chicago CivicNet Slide20:  Observatoire Mont-Mégantic Val d’Or/Rouyn Quebec University Condo Network Slide21:  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 Slide22:  List of Schoolboard Fiber Builds South Dundas :  South Dundas IROQUOIS MORRISBURG South Dundas Results:  South Dundas Results Morrisburg , Iroquios Have Fibre Hung Electronics In and Fibre Lit ISP’s , ASP’s all Want In he Fibre Major Employers Inquiring Very Positive Attitude in Community Digital Desert to Digital Oasis 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 Fredericton Fiber Build:  Fredericton Fiber Build Started as Economic Development tool MUSH, Govt., Research - ISP, carriers invited to participate Build partners emerged quickly, $50,000 “donated” by three firms Contracting now for 8 km phase 1, $110,000, complete Sept 2001 48 fiber min. 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 Slide31:  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 Fiber Capital Costs:  Typical Fiber Capital Costs 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 $25 to $100 per meter if new trenching required $10 tp $20 per meter for sewer installation 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 Condo Fiber Costs - Examples:  Condo Fiber Costs - 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 Typical Payback for school (Real example – des affluents – north of Montreal):  Typical Payback for school (Real example – des affluents – north of Montreal) Over 3 years total expenditure of $1,440,000 for DSL service Total cost of dark fiber network for 75 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 Slide37:  Reduction in the number of servers Big Cost Saving in VoIP for schools:  Big Cost Saving in VoIP for schools Many schools are using dark fiber to enable VoIP telephones to each teacher’s desk Also free phones in hallways for kids to all kids in other scholl With dark fiber only cost is the one VoIP phone itself VoIP gateway to PSTN is located at school board office Most teachers have never had a telephone in their classroom Has a bigger impact than multimedia, tele-learning etc Schools are ripping out old copper telephone systems and leaving one copper telephone for emergency purpose For more details Condo fiber for Business:  Condo fiber 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 Examples: Colgate-Palmolive build in Cincinnati Nortel, Cisco, Gov’t depts in Ottawa Advantage of Condo Fiber:  Advantage of Condo Fiber 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 Condo fiber for office buildings:  Condo fiber for 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 Marriage of wireless and fiber:  Marriage of wireless and fiber Many companies building longer range and higher speed versions of 802.11b (11 Mbps) Devices are low power and can be attached to fiber cable to provide inexpensive high bandwidth service for approx 1 km No licensing requirements so can be installed easily and quickly Allows easy extension of school or university LAN into the community Student can access university LAN from just about anywhere in the community Ideal for low cost – high bandwidth Internet service to the community No complex traditional wireless systems to manage 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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