Expanding Abroad Waiting out the Downturn Here
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WaitingWaiting OutOut thethe DownturnDownturn Here;Here; ExpandingExpanding AbroadAbroad While many providers in the US seem to be in “wait-and-see” mode, countries as diverse as Nigeria, Saudi Arabia and China plan major fiber deployments. By Masha Zager ■ Broadband Properties he economic downturn is taking its toll on FTTH de- piled by the US Conference of Mayors includes a number ployments, if the number of new announcements com- of fiber builds. Most are for specialized municipal uses like Ting our way is any indicator. Until recently, the slow- public safety, but such networks can serve as the backbones down in new housing was counterbalanced by the increase for later FTTP deployments. in MDU and municipal overbuilds. While our monthly fiber We’re also encouraged to see major commitments to roundup is a decidedly unscientific sample – many projects FTTH taking place in countries as different as Nigeria, are never formally announced and don’t come to our atten- Saudi Arabia and China. Nations that were late adopters tion until they’re no longer “news” – it does seem that even of telecommunications technology often went straight to for non-greenfield projects, many would-be fiber deployers mobile communications, bypassing the fixed-network stage (and their sources of capital) are in wait-and-see mode. entirely. Now some of them are reconsidering that decision, The good news is that planning continues to go forward, recognizing that fiber will be required to deliver the services and the availability of economic recovery funds will un- of the 21st century. doubtedly spur many new projects, both public and private. As we report below, the list of “shovel-ready” projects com- – MZ INDEPENDENT TELCOS Horizon Chillicothe Uses USDA Grant to Deploy Fiber orizon Chillicothe Telephone space for educational purposes. Rural nesota-based ILEC that is upgrading has joined the Corning Con- Development hosted an open house at its network to FTTH (see our Decem- Hnected Community Program the new center in November. ber report), announced that it is work- to support the deployment of Corning Corning Cable Systems developed ing with a professional services team optical fiber in Darbyville, Ohio, a vil- the program to assist developers in im- from solution provider ADC to imple- lage of fewer than 300 residents. HCT plementing fiber optic infrastructures ment this project. Albany Tel uses ADC is using a USDA Rural Development into their building plans. Bill McKell, equipment both in the central office grant to build an FTTH network; the Horizon CEO, says, “Working with (ADC’s FiberGuide fiber-management project includes the Darbyville Com- Corning through the Corning Con- system and OMX splice bays), and in munity Technology Center, which will nected Community Program, we can its outside plant (ADC’s 24-fiber Next house multiple computer terminals and educate our customers on the benefits of Generation Frame and RiserGuide ca- videoconferencing equipment, serve as a FTTH and further increase the technol- ble-management system). Albany Tel is wireless Internet access point for the sur- ogy’s visibility.” one of ADC’s first customers to place the rounding park, and include dedicated Albany Mutual Telephone, a Min- multifiber assemblies and RiserGuide JANUARY/FEBRUARY 2009 | www.broadbandproperties.com | BROADBAND PROPERTIES | 15 solution alongside the active equipment Ethernet architecture, Albany Tel is de- Xfone; as integration activities began, it in an Ethernet deployment. “The ADC ploying greenfield fiber networks – pri- became clear that the companies’ legacy equipment takes less space in the cen- marily in new-home developments – and cost management solutions could not ac- tral office, but leaves enough room for also building over existing copper lines. curately manage their combined assets. growth – particularly important as we Network speeds up to 100 Mbps will be The Web-based AIM solution allows move toward more fiber and less cop- available, ten times faster than Albany NTS to achieve the balance of internal per,” says Tom Eveslage, network opera- Tel’s current broadband offerings. staff, systems and third-party providers tions manager for Albany Tel. Texas-based FTTH provider NTS Today Albany Tel’s network consists Communications selected Razorsight’s that will minimize its network costs. of 85 percent copper lines and 15 per- AIM solution to automate its network NTS chief operating officer Brad Wor- cent fiber lines. Eveslage said those pro- cost management functions and provide thington says the software is a scalable portions should be reversed by the end related analytic capabilities. In 2008 solution that will help the company ac- of this five-year project. Using an active NTS Communications was acquired by commodate the growth it expects. BBP RBOC UPDATE FiOS to Inaugurate Service in Washington, DC erizon came a step closer to launching FiOS services in the District of Columbia when Mayor Adrian M. Fenty Verizon Reports Record Growth Vapproved the company’s cable franchise. One more step still remains – a Congressional review. As part of the 15-year in FiOS Customers for 4Q08 agreement, Verizon will make FiOS TV available throughout Verizon reported surprisingly strong earnings for the District over the next nine years. The first residents will be the fourth quarter – actually bettering 4Q07 by some able to order FiOS TV within a year. measures – driven by customer and revenue growth. In New York City, Verizon has expanded FiOS to additional “Verizon has shown that it is able to compete effec- areas in Manhattan, Brooklyn and Queens, making good on its tively in this economic environment,” Chairman and CEO Ivan Seidenberg said in announcing the financial Even in a down economy, results. “The Verizon story in 2008 was one of cus- tomer growth and product innovation, based on the Verizon’s added more FiOS strategic technology and broadband infrastructure customers than ever before, investments we have made year after year.” One of those strategic infrastructure investments boosting the company’s is the company’s fiber-to-the-premises network. Veri- earnings per share. zon Wireline reported record growth in the number of new customers for FiOS TV and FiOS Internet. pledge to build out the network to half a million homes by the end of 2008 (and eventually to make FiOS available to the entire FiOS TV FiOS city). Door-to-door marketing and other presales activities have Internet been taking place in all of these neighborhoods in preparation Net adds 4Q08 303,000 282,000 for the introduction of FiOS TV. Verizon also opened a retail Net adds 4Q07 226,000 244,000 store in Staten Island, another borough of New York City. Year-end data: Despite its recent focus on big cities, Verizon isn’t neglect- Total customers 2008 1.9 million 2.5 million ing the suburbs and smaller cities where it first started its FiOS Total customers 2007 0.9 million 1.5 million project. In the last month it gained franchise approvals in com- Penetration rate 2008 20.8% 24.9% munities in New York, Pennsylvania and Massachusetts and Penetration rate 2007 16.0% 20.7% began rolling out video services in new communities in those Premises marketed 2008 9.2 million 10 million three states as well as in California. Verizon also announced that FiOS TV now provides 100 Premises passed at year-end 2008: 12.7 million, or or more channels of high-definition (HD) television in every 40% of total Verizon landline footprint. market where the TV service is offered, and that FiOS TV ARPU for FiOS customers at year-end 2008: $133 customers can now control their Home Media DVRs remotely, per month. either online or via certain Verizon Wireless handsets. BBP 16 | BROADBAND PROPERTIES | www.broadbandproperties.com | JANUARY/FEBRUARY 2009 Municipalities Shovel-Ready Broadband Projects Set to Go he US Conference of Mayors released a report on urban The city of North St. Paul, Minnesota, is planning a ref- infrastructure projects that are “ready to go” as part of erendum in February to approve the construction of a fiber-to- Tan economic recovery package – more than 15,000 proj- the-home network, which it is calling PolarNet, and which it ects that meet local needs, can be funded through existing fed- hopes will “provide an answer to the question of what distin- eral channels, can start quickly when funding is received, and guishes North St. Paul from other communities in Minnesota can generate significant numbers of jobs. These 15,000 proj- as a place to live, work or play.” The project has been more than ects include a number of special-purpose fiber optic networks, five years in the making, and will require issuing $18.5 mil- mostly for public safety and traffic control, along with several lion in general-obligation bonds. A majority vote is required community WiFi projects. (Some of the municipal fiber proj- in order to issue the bonds, extend the existing fiber backbone ects will be able to serve as the backbones for FTTH rollouts in future years.) FTTH subscribers in Lafayette, LA, In addition, there were three requests to build broadband networks: will be able to communicate at 100 • The city of Bridgeport, Connecticut, requested $10 million Mbps within the network, whatever to install a citywide broadband network for both commu- nity and municipal use, creating 40 jobs. their Internet access speeds. • The city of Miami, Florida, requested $28 million to build a municipal broadband network that would create 560 jobs. to homes and offer Internet and video services; a 65 percent • The Austin Independent School District in Austin, Texas, supermajority is needed in order to provide telephone services. requested $15 million to provide access for low-income stu- If the referendum passes, the city plans to begin building in dents to broadband communications from their homes, a the spring and start offering services to customers in late fall project that would create 40 jobs.