Broadband Deployment in Canada
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- Adele Lyons
- 6 years ago
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1 Broadband Deployment in Canada Tel:
2 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 ( ) > total project costs estimated over $600 M > currently over 140 members; 21 Board members
3 What drives demand for broadband > Applications or competition > Once a technology is perceived as having broad utilitarian value, price, as opposed to features or applications drive penetration > Every year the PC has new applications > But the biggest driver for widespread PC in the home is low cost > And what is the driver for low cost.competition!!
4 A growing trend > There is a clear trend in all formerly monopoly services to move to competitive services > Electrical distribution systems: Separation of transmission costs versus power costs from competitive suppliers > Gas distribution systems: former regulated monopolies (unbundling is well underway) > Telecom is the last bastion of monopoly operation where services and infrastructure are provided by same company
5 How to introduce competition > To date telecom regulators have focused on facilities based competition and open access and unbundling > Facilities based competition is ultimately the best solution Has been very successful in the long haul > Open access has been the alternative solution for the last mile But has had poor track record with incumbents > Mistaken belief by regulators that wireless can compete effectively with fiber as facilities based competition > If fiber is a natural monopoly, particularly in last mile suburban areas, then structural separation maybe more important than facilities based competition
6 An alternate solution > Municipal Condominium Fiber Network using fiber ROW and fiber facilities facilitated by municipal government > Governments partner with private sector to build condominium fiber networks to all public sector buildings Government achieves social goal of affordable bandwidth to all public sector buildings Condominium fiber allows many competitors to own strands of fiber into the neighbourhood Cost of construction is shared amongst all participants > Structural separation between ownership of fiber cable and ownership of individual strands But facilities based competition between owners of individual strands
7 Municipal Condo Architecture Fiber Splice Box Central Office For Wireless Company School board or City Hall Carrier Owned Fiber Telco Central Office Cable head end Condominium Fiber with separate strands owned by school and by service providers School Colo School Facility b VDSL, HFC or FTTH Average Fiber Penetration to homes Business
8 What is condominium fiber? > Several next generation carriers and fiber brokers are now arranging condominium fiber builds > Organizations such as schools, hospitals, businesses, municipalities and universities become anchor tenants in the fiber build > Each institution gets its own set of fibers on a point to point architecture, at cost, on a 20 year IRU > Fiber is installed and maintained by 3 rd party professional fiber contractors > Institution lights up their own strands with whatever technology they want Gigabit Ethernet, ATM, PBX, etc > Cost on average $25K US plus $1500 per year for maintenance
9 Condo fiber for Business > Significant reduction in price for local loop costs > 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 > Examples: Colgate-Palmolive build in Cincinnati CGI (Bell Canada subsidary) Lehman Brothers in NY Ford in Detroit Bank of America US Weather Service
10 Halifax Condo Fiber Build Private fibre optic network km $350,000 build $150,000 engineering Links all major universities, hospitals, research centers and some schools Connects to CA*net4 at Nova Scotia GigaPOP
11 Montreal Condominium Networks Lionel-Groulx Lanaudière Marie-Victorin Sorel-Tracy Montmorency Bois-de-Boulogne Ahuntsic Rosemont Maisonneuve Édouard-Montpetit Vers Québec St-Laurent/Vanier Gérald-Godin Vieux-Montréal Champlain John-Abbott Dawson André-Laurendeau Construit Projet démarré À venir Bande passante louée
12 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
13 Benefits to Carriers > For CLECs it help them accelerate the deployment of facilities based high speed internet services into the community 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
14 Condo Fiber Costs - Examples > Des Affluents: Total cost $1,500,00 ($750,000 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
15 BOEING BUILDS PRIVATE NATIONWIDE OPTICAL NETWORK Boeing awarded an estimated US$20 million contract to Nortel Networks to build a private nationwide optical network based on DWDM and next generation SONET. Plans call for the deployment of OPTera Long Haul 1600 Optical Line Systems and OPTera Metro 3500 Multiservice Platform in multiple cities across the country. sreleases/2002c/07_23_02_boeing.html
16 Why Gigabit to the home? > Why 2.1 Gigahertz machine and 40 Gigabyte drive? > Bandwidth, like memory or CPU power should be consumer choice > Government should not be the arbitrator of what s constitutes broadband > BUT, government should insure that consumer s have a choice of broadband from 56 kbps to Gigabits and beyond
17 Gigabit to the home > With municipal condominium fiber builds multiple carriers share in the cost of fiber build out to neighbourhood nodes serving approximately homes > It is impractical to have multiple carriers own individual strands from the neighbourhood node 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 Customer decides if they wish to connect to an aggregator, convergence provider, or single service Internet provider > Two approaches: RPON which allows easy moves, adds and changes Micro conduit and fiber is blown in upon customer request from designated service provider
18 Gigabit to the Home ISP E ISP C ISP D Colo Facility with RPON Customer owns fiber strand all the way to Neighborhood Node Splice Box ISP B Colo Facility Up to 15 km 864 strands X X School with dual connections Municipal Condominium Fiber Trunk
19 Self Organizing Networks Switch Aggregator ISP Passive Optical Splitter Active laser at customer premises Customer Controlled or Owned Fiber Neighborhood Node
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