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Delivering on the promise of FTTP Editor’s Note The Fiber-to-the-Home Juggernaut EDITORIAL DIRECTOR Scott DeGarmo The recession hasn’t stopped FTTH. PUBLISHER Nancy McCain It’s growing fast, especially in MDUs. [email protected]

Corporate Editor, BBP LLC knowledgeable observer of multi- closely with many of its vendors to drive Steven S. Ross family housing told me recently, other technology advances for MDUs; [email protected] “There can’t be much fiber-to- among those detailed in this issue are Editor A the-home activity these days. It’s so de- ADC’s Rapid Fiber vertical distribution Masha Zager [email protected] pendent on the new-housing market.” system and 3M’s new One Pass system for ADVERTISING SALES Knowledgeable, but wrong. distributing fiber along apartment corri- Irene G. Prescott The last six months were the best yet [email protected] dors. We also describe innovations from for fiber-to-the-home growth in North vendors such as Clearfield and Miniflex DESIGN & PRODUCTION Karry Thomas America. The latest FTTH surveys, pre- that have worked with independent telcos Contributors sented at last month’s FTTH Confer- on their MDU fiber deployments. Going Joe Bousquin ence by Michael Render of the market David Daugherty, Korcett Holdings Inc. forward, home-networking technologies Richard Holtz, InfiniSys research firm RVA, revealed that more such as G.hn will help distribute fiber- W. James MacNaughton, Esq. than 900,000 additional homes were based bandwidth inside the unit. Henry Pye, RealPage Bryan Rader, Bandwidth Consulting LLC connected with fiber between March and Of course, technology is not the only Robert L. Vogelsang, Broadband Properties Magazine September, bringing the total to more driver for fiber to the MDU. Bryan Rader than 5 million. Deployments are strong Broadband Properties LLC of Bandwidth Consulting, in an interview and take rates continue to rise, reflecting about the private cable operator industry, PRESIDENT & CEO Scott DeGarmo customer satisfaction with fiber-based advises operators to upgrade their infra-

SENIOR VICE PRESIDENT services. structures to adapt to a world that is in- CHIEF FINANCIAL OFFICER This record-setting growth occurred Himi Kittner creasingly broadband-focused rather than during the steepest economic downturn of VICE PRESIDENT, video-focused. With a better infrastruc- BUSINESS & OPERATIONS the last 80 years, with jobless rates rising, ture, Rader says, operators will be able to Nancy McCain housing prices collapsing and new housing offer many new premium services. Audience Development/Digital Strategies Norman E. Dolph construction slowing to a crawl. What’s Similarly, this issue’s “Property of the

CHAIRMAN OF THE BOARD more, broadband stimulus funds, though Month” feature details a fiber-to-the-unit Robert L. Vogelsang promised, had not yet begun to flow. deployment by Hotwire Communica- VICE CHAIRMAN tions at the new Trump Towers in Sunny The Hon. Hilda Gay Legg Fiber to the MDU Isles Beach, Fla. In this upscale deploy- BUSINESS & EDITORIAL OFFICE Much of this deployment is occurring Broadband Properties LLC ment, the average buyer owns four video 1909 Avenue G in multifamily housing, once regarded Rosenberg, Tx 77471 screens and demands the best of every- 281.342.9655, Fax 281.342.1158 as a challenging business case for fiber. thing, including broadband. Only fiber WWW.BROADBANDPROPERTIES.COM Verizon, having won video franchises in could meet that demand. several large cities, is rolling out FiOS Technology providers need more than services to millions of multifamily units. next-generation technology and service AT&T is also bringing its U-verse ser- offerings to survive in today’s MDU mar- vices to MDUs; though most of U-verse ketplace; they also need next-generation is based on fiber to the node, Rick Hub- service management. This issue intro- bard of AT&T’s Connected Communi- duces a new column, “Metrics,” by David Broadband Properties (ISSN 0745-8711) (USPS 679- ties program describes in this issue how Daugherty of Korcett Holdings, which 050) (Publication Mail Agreement #1271091) is published the company deploys fiber both to the 9 times a year at a rate of $24 per year by Broadband will address measurement-based best building and to the unit. Many other ser- Properties LLC, 1909 Avenue G, Rosenberg, TX 77471. practices for MDU broadband operators Periodical postage paid at Rosenberg, TX, and additional vice providers, large and small, are also mailing offices. addressing the MDU market. aiming to provide consistent, stable Inter- POSTMASTER: Please send address changes to Broadband net service. In the end, as Daugherty says, Properties, PO Box 303, Congers, NY 10920-9852. Although bendable fiber is an impor- CANADA POST: Publications Mail Agreement #40612608. tant reason for this change – read about it’s all about the customer experience. Canada Returns to be sent to Bleuchip International, PO Box 25542, London, ON N6C 6B2. Copyright ©2005 Broadband innovative uses of ultra-bend-insensitive Properties LLC. All rights reserved. fiber in an article in this issue by Guy Swindell of OFS – it isn’t the beginning or the end of the story. Verizon has worked [email protected]

2 | BROADBAND PROPERTIES | www.broadbandproperties.com | October 2009 T:7.875”

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DIRECTV is proud to be one of Broadband Properties Top 100 Companies to do business with for 2009.^

For more information on why your building should have DIRECTV, call 888-342-7288. *Among the largest national cable & satellite TV providers. 2009 American Customer Satisfaction Index, University of Michigan Business School. †To access DIRECTV HD programming, customer must reside in a MFH2™ or MFH3™ capable property. Plus, an HD Access fee ($10/mo.), HD Receiver (H20, HR20 or greater), HD television equipment, and a qualifying programming package are required. Number of HD channels varies by package. ††“Dolby” and the double-D symbol are trademarks of Dolby Laboratories. ^Based on Broadband Properties Top 100 Companies list 2009. INSTALLATION: Standard professional installation only. Custom installation extra. SYSTEM LEASE: Purchase of 12 consecutive months (for standard and advanced receivers) of any DIRECTV programming package ($29.99/mo. or above) or qualifying international service bundle required. FAILURE TO ACTIVATE ALL OF THE DIRECTV SYSTEM EQUIPMENT IN ACCORDANCE WITH THE MULTI-DWELLING UNIT PROGRAMMING AGREEMENT AND EQUIPMENT LEASE ADDENDUM MAY RESULT IN A CHARGE OF $150 PER RECEIVER NOT ACTIVATED. IF YOU FAIL TO MAINTAIN YOUR PROGRAMMING, DIRECTV MAY CHARGE A PRORATED FEE OF UP TO $240. RECEIVERS ARE AT ALL TIMES PROPERTY OF DIRECTV AND MUST BE RETURNED UPON CANCELLATION OF SERVICE, OR ADDITIONAL FEES APPLY. CALL 1-800-DIRECTV FOR DETAILS OR YOUR AUTHORIZED MDU DEALER. Programming, pricing, terms and conditions subject to change at any time. Pricing residential. Taxes not included. Receipt of DIRECTV programming subject to DIRECTV Customer Agreement; copy provided at directv.com/legal and in ﬁrst bill. ©2009 DIRECTV, Inc. DIRECTV and the Cyclone Design logo are registered trademarks of DIRECTV, Inc. All other trademarks and service marks are the property of their respective owners.

DITV5757R_M11_Dealer_MDU_BurstTreatment_FILM.indd 1 9/29/09 4:53:47 PM Table of Contents

DEPARTMENTS COVER STORY Editor’s Note . 2 908,000 New FTTH Customers! The Bandwidth Hawk...... 6 A Record Summer for Fiber | 20 BBP Marketplace...... 97 By Steven S. Ross ■ Broadband Properties Advertiser Index...... 100 The latest surveys by Michael Render of RVA LLC show that fiber Calendar ...... 100 deployment in North America has picked up steam. More homes were connected with fiber in the last six months than ever before.

IN THIS ISSUE MDU Report Provider Perspective Q&A With Rick Hubbard, Is There an App for Us? | 8 AT&T Connected Communities | 26 By Bryan J. Rader ■ Bandwidth Consulting LLC The executive responsible for bringing U-verse to MDUs discusses Private cable operators can enhance the value of their infrastruc- how the company works with property owners and managers. ture by encouraging third-party application providers to develop MDU-specific applications. New Technologies for Owners Corner Deploying Fiber in the MDU | 30 Be Careful What You Wish For | 10 A BBP Staff Report By Henry Pye ■ RealPage Advances in technology have made installing fiber in MDUs faster, Now that owners often own the wiring inside their buildings, they easier and less expensive. Many MDU-specific products were on must assume responsibility for maintaining and upgrading it – or display at the FTTH Conference in Houston last month. make sure someone else does. Q&A With Bryan Rader: The Changing Introducing a new column: Landscape for Private Cable Operators | 34 Metrics Consultant Bryan Rader talks about the impact of the current Measuring and Managing recession and long-term shifts in consumer behavior, and how they affect PCOs. Next-Generation Internet Service | 12 By David Daugherty ■ Korcett Holdings G.hn: A New Standard for Home Connectivity | 36 Delivering stable Internet service in MDUs requires providers to By Linda Schoener ■ Technology Writer measure what they want to manage. By the end of next year, products embedded with G.hn technology Property of the Month will begin to appear on the market. The new standard will solve problems for both property owners and service providers. Trump Towers, Sunny Isles Beach, Florida | 16 – Digital edition bonus section: Additional graphics – By Joe Bousquin ■ Contributing Editor, Broadband Properties Managing Radio Frequency Condo buyers in these new Trump-branded buildings have four Interference in MDUs | 65 video screens apiece and demand the best of everything, including By Richard Sherwin ■ Spot On Networks broadband. Wi-Fi access is a must-have amenity for MDUs, but owners must NMHC Conference & Expo prevent interference to keep Internet service from being degraded. Featured Exhibitors and Companies to Meet | 72 Another Case of the Bends | 68 Independent Telcos By Guy Swindell ■ OFS Fiber Deployments by Independent Telcos | 76 Ultra-bend-insensitive fiber has many uses and applications in MDUs, offering deployers a variety of opportunities to reduce By Masha Zager ■ Broadband Properties installation and maintenance costs. More than 400 independent telcos are deploying fiber to offer advanced services to their customers. Broadband Apps Access Planning and Implementation Guide | 39 Sponsored by AFL Telecommunications What’s on TV? New Applications for Video | 92 In this special section, find out why FTTH is the fastest-growing By Masha Zager ■ Broadband Properties access technology in the U.S., how it is being deployed in master- Though traditional video programming is becoming a commodity, planned communities and MDUs, and how fiber optic networks service providers can take advantage of new video applications can support new services. and technologies.

BUT WAIT…THERE’S MORE! The Digital Edition of Broadband Properties now includes free online-only bonus material. International news, extra photographs and other features are now available to supplement the print edition. Visit www.bbpmag.com/bbponline.php to see this month’s Digital Issue.

4 | BROADBAND PROPERTIES | www.broadbandproperties.com | October 2009

1101010010_THE_BANDWIDTH_HAWK_0101101011 HomeGrid and HomePlug Will the incompatibility between HomePlug and G.hn cause problems for property owners trying to deliver high-bandwidth services to residents?

By Steven S. Ross ■ Broadband Properties

his issue carries a comprehensive HomePlug Not Ready press release that called the delay in con- explanation of the new G.hn Fortunately, such conflicts should be sent for G.9972 “a significant setback Tstandard for home networking. rare, despite the 35 million HomePlug for G.hn and another clear indication Because G.hn operates seamlessly on adapters already sold (good for about 17 that the powerline networking industry multiple kinds of wire at the same time million two-node home networks). Un- is not aligning around G.hn.” – including coax, Ethernet Cat 5 and fortunately, the HomePlug folks have Part of the delay has to do with likely Cat 6 (even Cat 3) cable and HDMI – been rather slow off the mark. That may requirements for the smart-grid initia- and even connects to Ethernet wireless create problems well into the future. To tive included in the U.S. stimulus pack- networks, G.hn will make it easier to understand why, one has to look more age in February but not finalized until deliver services to dwelling units with- closely at exactly what the ITU did in late spring. Only in June did AT&T (a out expensive rewiring. October. Though G.hn was not final- supporter of both G.hn and HomePNA) Eventually, G.hn and HomePNA ized, its key components were – the and others begin to submit ideas to ITU (IEEE 1901) will probably become the general G.hn architecture and the PHY, to align G.hn with smart-grid require- worldwide choices for dwelling units or physical network layer. Thus, G.hn is without structured wiring. But for the ments. But in October the G.hn work- now stable enough to allow chip vendors ing group could not agree on many cri- near future, G.hn is just another way to to bring products to market. make flexible, high-performance home teria for a smart-grid device profile, or Another important aspect, proposed even on an informational appendix de- networks possible at a reasonable price. Recommendation G.9972, allowing co- Other standards will work about as well if scribing how a G.hn smart-grid device existence between G.hn products and the existing wiring is suitable for them. might be configured. In fact, the group other wireline networking standards, G.hn coexists easily with MoCA could not even agree on what a smart achieved ITU consent, the final step (coax-based Ethernet networks) and grid might include. before a recommendation becomes a HomePNA. For instance, networks The HomePlug folks say this will de- standard. The G.hn Data Link Layer running on G.hn and MoCA can be lay final design of G.hn chips until 2011, portion of G.hn was also deemed stable installed and active at the same time, but consent is not expected until the keeping fully certified G.hn products although they cannot exchange data di- from shipping until mid-2011. Next- rectly. (Failure to exchange data is not a January 2010 ITU-T meeting. “G.hn will empower service pro- generation HomePlug AV2 chips and major problem because appliances such smart-grid GP chips should be avail- as PCs and newer TVs can interact with viders to deploy new offerings, including IPTV, more cost effectively; allow able by next spring. HomePlug promises multiple networks at the same time.) compatibility and full interoperability Unfortunately, G.hn is not yet as- consumer electronics manufacturers with HomePNA. sured of coexisting with HomePlug, to network all types of entertainment, However, this is not a competitive the protocol for moving Ethernet over home automation, and security prod- electrical wiring. The emerging version ucts throughout the house; and greatly race, although HomePlug is treating it of HomePlug should be compatible with simplify consumers’ purchasing and that way. All the technologies have their G.hn, but there is no approved final installation processes,” says Matthew place in bringing broadband to the last mechanism for ensuring that. Theall, president of HomeGrid Forum, few feet. And if the folks at HomePlug MDU owners and managers who the trade association promoting G.hn. think that all MDU networking prob- adopt G.hn and expect to use electri- The HomePlug folks, who exploded lems can be solved by using electrical cal wiring for the network must be on in anguish at last winter’s delay, ex- wiring, this bandwidth hawk says the the lookout for tenants’ installing retail ploded in anguish once again, issuing a notion is absurd. BBP HomePlug Ethernet adapters by plugging them into electrical outlets. Such installations, using HomePlug versions About the Author currently on the market, could bring Write to the Hawk at [email protected]. down a G.hn network.

6 | BROADBAND PROPERTIES | www.broadbandproperties.com | October 2009 Comcast delivers the one thing you want. Everything.

When you partner with Comcast, you’re partnering with America’s leading enhanced fiber-optic network for TV, phone and Internet. Comcast has over 60 years of delivering the best entertainment experience your residents crave. Just tap into our ready-now infrastructure and count on delivering leading-edge products today and tomorrow. Tons of HD choices! 10,000 On Demand choices each month! A faster Internet! A smarter phone! Integrated and innovative technologies! And so much more. All together in one impressive package that will make your property impossible to resist!

Get started with Comcast today. To reach a Multi-Family Account Specialist, please email us at: [email protected] Provider Perspective Is There an App for Us? Apple made the iPhone more valuable by allowing third parties to build applications for it. Private cable operators can enhance the value of their infrastructure by opening their platforms to MDU-specific apps.

By Bryan Rader ■ Bandwidth Consulting LLC

ould you like to find the best high-speed connection to each apart- What if a subscriber is looking for a gas prices in your area? Just ment. What works for one MDU might safe place for a 3-mile run starting from Wdownload GasBuddy, the app work for another MDU, too. the front of her apartment community? that knows the cost per gallon at gas Let’s turn our broadband platform Easy – our PCO Apps Store can help her stations wherever you go. Need a con- into an open forum for all programmers, out. It can map out running paths de- venient way to remember all your online engineers, marketers and salespeople to signed for daytime, nighttime, easy (flat- passwords? That’s easy – just download brainstorm about creating new apps course) or difficult (hilly) runs starting the 1Password app, which securely stores for our business. What would they be? right at her doorstep. How cool. all your online passwords in one place. What would this forum look like? If one of our subs was a recent down- Do you want to play a game while sizing victim and now quickly needs a The PCO Apps Store standing in a long, slow line at the gro- job to pay his rent (and his cable bill), cery store? Download the Cro-Mag Our PCO Apps Store would be geared we have a great résumé-writing app. (I’m Rally game app and get behind the to our MDU market. We can create sure our MDU client will love this app – wheel of a prehistoric hot rod. special apps for our subscribers that add one less move-out!) Yes, all these applications, and thou- value to living in one of our communi- We can make our service unique and sands more, are available to more than 25 ties. It’s great for property owners and more rewarding for our customers if we beneficial to their residents. million iPhone users around the world. use our broadband platform in fresh, For instance, what does an apartment Introduced just over two years ago by creative ways. These are just some starter renter need most after signing a lease for Apple, the iPhone has been wildly suc- ideas to get the creative juices flowing in a new apartment? The cheapest truck cessful and has spawned an entire cot- all the great PCOs in our industry. rental possible and maybe an estimator tage industry of programmers trying to We know our customers; let’s build to size the truck. What about cost? How dream up and create the next great app. something specific for them. I leave it to much should renters expect to spend to The iPhone App Store has great apps the programmers and engineers in our move from their old apartments to their for work i ng out, m a na g i ng mone y, c ou nt- market to design something that works new ones? Guess what – the PCO Apps well for everyone. ing calories, finding an ATM, keeping Store has an app for that! Apple did it, and now more than 12 kids entertained, decorating a room and Suppose a subscriber’s roommate million people download new apps every playing poker. Downloading new apps moves out to live with his girlfriend month. If our PCO customers download has become so popular that nearly half and the subscriber now needs someone new apps over their broadband connec- of all iPhone users downloaded at least to split his rent? How can he quickly tions, this could help us continue to dif- one app last month. Incredible! find a male, nonsmoking, Spanish- ferentiate ourselves from our competi- Apple found a way to tap into a speaking, employed roommate? Great tion and win more business. realm of home-grown programmers to news – there’s a “roommate search” app I bet we could create an app for that, create something that adds value to the for that. too! BBP experience of having an iPhone. I would love to unleash that same en- ergy and talent in the private cable opera- About the Author tor (PCO) industry to develop new apps Bryan Rader is CEO of Bandwidth Consulting LLC, which he founded in 2007 to for our clients and customers. Play along assist providers with their performance in the multifamily market. Prior to starting with me for a minute as I explore this Bandwidth Consulting, he founded and ran private cable operator MediaWorks for thought. Maybe there’s an app for us. 10 years. You can reach Bryan at [email protected] or at 636-536-0011. Most PCOs use the same architec- Learn more at www.bandwidthconsultingllc.com. ture – a premises-based headend and a

8 | BROADBAND PROPERTIES | www.broadbandproperties.com | October 2009 Choosing the right teChnology Can be the hardest part of your job.

thankfully, it Can be the least of your worries.

The service provider industry is always changing. technologies and offer objective advice based At any given time there are countless applications on actual experience. We work with the best emerging, all claiming to revolutionize the way suppliers to stay on top of the latest applications. you do business. But do you really have the time We provide scalable solutions because to investigate each one? How do you upgrade you need options to satisfy your customers’ your copper or fiber network to Triple Play, diverse needs. For decades, our nationwide without starting over? Shouldn’t you be able to distribution network has been here to help service focus on managing your own business instead? providers build their businesses. Now, we’re ready That’s why we’re here. We research all promising to help you build yours.

for triple play osp solutions and to request adC’s new publication, The Book on FTTX, visit graybar.com/adC Owners Corner Be Careful What You Wish For For years, owners fought to regain control of inside and home-run wiring. Now they must ensure that wire maintenance doesn’t become a burden.

By Henry Pye ■ RealPage “If your cabling has been rendered obsolete oday, many property owners own the coaxial cable inside by today’s technology, you really have no choice Ttheir buildings. This came about but to retrofit the entire community.” through regulatory changes that the FCC implemented in 2003 and 2007, other building video infrastructures ment Homes. He adds, “If your cabling through owners’ attempts to give resi- defy easy description but are equally in- has been rendered obsolete by today’s dents a choice of providers and, in some capable of supporting modern services. technology, you really have no choice cases, because of service providers’ bud- Chris Acker, director of building but to retrofit the entire community. get cuts. technology services for real estate man- Otherwise, you run the very real risk of Along with ownership, owners may agement company Forest City Enter- frustrating your residents and driving inherit responsibility for repairing, up- prises, comments, “For years, the multi- your expense budget ever higher in a fu- grading and replacing cable. In the past, family industry, various direct broadcast tile attempt to live with what you have.” providers normally assumed responsibil- satellite providers and, increasingly, Most providers accept responsibility ity for repairing and upgrading the coax the incumbent local exchange carriers for wiring individual apartments when they used; today, some providers at- (ILECs) have fought for owners to re- they initiate service, regardless of con- tempt to shift this obligation to owners. gain ownership of home-run and inside tractual obligations. But given increas- Ian Davis, a shareholder at the commu- video cabling from the MSO without ing competition and shrinking provider nications law firm Munsch Hardt, com- determining either what they are getting budgets, owners that are contractually ments, “There is a growing attempt by or the cost of maintaining, repairing and responsible for rewiring could have to several of the largest providers to shift upgrading it.” pick up the costs at any time. coax maintenance costs to the com- Mike Kolb, overbuild specialist for Surprisingly, many owners fail to munity owner – unless, of course, the fiber deployer Connexion Technologies, consider these potential costs when they owner is willing to give the provider ex- estimates rewiring of coaxial cable at negotiate new contracts or renewals. clusive use of that coax, thereby creating $225 per unit or more. Rewiring an en- Focusing on the potential revenue from a high barrier to entry, in which case the tire 200-unit community costs upwards voice, video and high-speed Internet provider will graciously agree to assume of $45,000; rewiring the same building contracts is easier than accounting for responsibility for the wiring.” one unit at a time can cost more than potential expenses and liabilities. How- $350 per unit, or $70,000. ever, unless contract negotiations cover Wiring: Asset or Liability? “Rolling a truck to a community for both revenues and liabilities, owners Coaxial cable in multifamily communi- the piecemeal upgrade of a single apart- may find that their contracts are worth ties built before 2003 is mostly not in ment is expensive, and doesn’t even be- far less that they estimated. In some good condition and requires significant gin to address the lost value from poor cases, the contract may even represent a work to support competitive service of- resident satisfaction when services don’t net expense. ferings from cable companies, telcos or work or are undeliverable due to infra- In the next issue, Owners Corner be- direct broadcast satellite companies such structure issues,” says Steve Sadler, vice gins a four-part series, “Assessing the Value as DIRECTV or Dish Network. president of ancillary services for mul- of a Marketing Agreement and Avoiding The industry did not adopt mod- tifamily property developer Post Apart- Common Mistakes.” BBP ern quad-shield Series 6 coaxial cable or structured cabling designs until well into this decade. The majority of build- About the Author ings contain daisy-chained Series 59 or Owners Corner is written by Henry Pye and industry peers. Henry is vice president of older coaxial cable. In other communi- Resident Technology Solutions for RealPage (www.realpage.com). He can be reached ties, Series 59 or older cable has been at [email protected]. installed in a home-run topology. Still

10 | BROADBAND PROPERTIES | www.broadbandproperties.com | October 2009 With us, residents don’t just keep up with the Joneses. They keep up with the future.

Job#: BA4372 Trim: 7.875"x10"

Bleed:.125"

Live: 7x10

Folded:

4c, Spot, BW: 4c List Spots:

Rev. #: LTD: Layout: Mech: X

Approvals: Date: CW: AD: ACD: CD: TR: AE: PF: TB:

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BA4372.HSGC.Hanly.MFE.MDU.indd 1 9/30/09 1:56:38 PM Measuring and Managing Next- Generation Internet Service To deliver consistent, stable Internet service, providers must measure what they want to manage – and develop a feedback loop so they can apply the results.

By David Daugherty ■ Korcett Holdings

onventional business wisdom “We just want the phones to stop ringing,” says states, “If you can’t measure it, Cyou can’t manage it.” Measure- a property manager. When the help desk solves ment and feedback make the difference between chaos and controlled output. problems proactively, the phones don’t ring. In engineering, too, the feedback loop is what changes a chaotic system into a providers and diligently collecting feed- kids grew up with a game controller predictable system. If you can measure back from end users. This is the founding in one hand and a mobile phone in the a system’s output, you can make intel- premise of the Metrics column. We aim other. They are the undisputed masters ligent decisions about the input and thus to establish an industrywide dialogue of multitasking and the products of the control the output. that will lead to a better understanding instant-gratification generation. They Why don’t technical service compa- of the successful design and deployment will be our focus group for understand- nies such as Internet service providers of stable Internet services. In each issue, ing how to deploy, manage and support (ISPs) apply this commonly held busi- we will explore real-world examples of Internet services in a broad range of ver- ness and engineering principle? Why, how Internet delivery systems have been tical markets. for example, do real estate developers successfully deployed and supported. A student housing community typi- find getting consistent Internet services We will visit with a wide range of people cally has between 50 and 5,000 residents from one region of the country to the from real estate developers to end users living in anywhere from one to several next so difficult? and obtain their feedback on what con- hundred buildings. Internet services are You would think that if any business stitutes success. usually provided as part of the lease, and could incorporate this principle, the ISP local service providers will deliver an ag- business would be the one. But the most A Service Crucible gregate data pipe to the property under common feedback loop for Internet de- Given that students have recently moved a bulk service agreement. The bulk ser- livery is the legal system. When residents into college housing, we will begin our vice agreement will stipulate minimum complain too loudly, the property owner discussion with the challenges of provid- upload and download speeds and may or manager uses legal instruments to get ing bulk Internet services to students. include access to Web-based managed the service provider to fix problems. The This month we will consider what consti- utilities for each resident. response time for this kind of feedback is tutes a successful student housing deploy- more likely to cause catastrophic failure ment. In later columns we will review the Success From the ISP’s than the desired result. processes that led to this success. Perspective To make matters worse, service pro- Students are often regarded as the Chris Acker, director of the building viders keep reinventing the wheel. There most discriminating and demanding technology services group for Forest City is little or no intraorganizational feed- group of Internet users. Most of these Residential Management, once quipped, back regarding best practices. Even if one division of an ISP delivers reliable services, the same company won’t neces- About the Author sarily produce the same results in other David Daugherty is the CEO and founder of Korcett Holdings. He can be reached regions. at [email protected]. Korcett Holdings is dedicated to the development and deploy- These problems can be addressed ment of next-generation service solutions. For more information on Korcett Hold- only by going back to basics – by im- ings, go to www.korcett.com. proving communication among service

12 | BROADBAND PROPERTIES | www.broadbandproperties.com | October 2009 “We just want the phones to stop ring- and I love you,” students are already off service provider. The associated costs in ing.” Acker’s main concern is to avoid making new friends and checking out terms of time and resources can com- distractions that keep the front-office their resort-like apartment complexes. pletely change the business model for staff from providing other on-site, value- Student housing today typically features both the developer and the ISP.” added services. full-size gyms, ocean-sized pools, movie An Ounce of Prevention is With 10 million students in the theaters complete with recliners, com- Worth a Pound of Cure United States checking into their rooms puter labs and, most important, Internet Exhibits 1 and 2 represent breakdowns at the beginning of each semester, we access. of Internet-related resident complaint can easily understand why facility man- After the parents have gone, the first calls in a one-month period following agers are sensitive to how the front-office things students unpack are the state-of- move-in at two different properties. staff spends its time. The fewer calls that the-art laptops they got as high-school reach the front office during semester Both properties are dedicated to student graduation gifts. For freshmen leaving housing and in most other aspects are turn, the more time the front-office staff home for the first time, Internet access is will have to get the residents situated in quite comparable. The key difference be- more than just an educational tool – it is their rooms. tween the two properties lies in a single their conduit to home and security, fam- “During the summer and fall turn,” preventative step taken by the prop- ily and friends. observes Hunter Barrow, KHI help desk erty owner in Exhibit 1: This company “The students’ Internet experience is manager, “students fall into two catego- hired a wiring contractor that provided crucial,” notes Eric Hansen, KHI senior ries: those with and those without PC- continuity-testing results as part of its based connectivity problems.” Shortly vice president of operations. “It can en- deliverables. These tests allowed the after students move in, those with PC hance or tarnish the first days or weeks contractor to identify and correct faulty connectivity issues are quickly identified of the student’s college experience. Ram- wiring and other wiring-related issues and the problems resolved. Barrow says, ifications of a poor first impression will before residents arrived. Because of “Once we get everyone online, we rarely quickly spread from the student to the this preventative testing, wiring-related hear from them.” student’s parents, to the front desk, to complaints made up only 10 percent of We cannot overstate the importance the resident manager and finally to the trouble calls. of feedback in high-turnover properties such as student housing. If the service provider cannot accurately identify and correct problems, it will deal with the SPECIAL SUBSCRIBER OFFER same problems the following semester, and the long-term profitability of this type of business will remain question- $350 USE VIP CODE: BBPSUB able. This is a primary reason service (for current subscribers ONLY) providers have not gotten much traction Good until 11/20/09 with bulk data services in high-occupancy, high-turnover properties. www.bbpmag.com, CLICK REGISTER Conversely, once a service provider perfects the delivery of Internet service in high-turnover properties, it will be able to reduce operational costs and improve customer satisfaction in many other vertical markets. The ability to deploy consistent solutions across geographically diverse service regions is what makes a great service provider. We refer to this type of consistent, stable service as “next-genera- April 26 – 28, 2010 tion Internet service.” InterContinental Hotel – Dallas Resident Move-In Day: Addison, Texas A Beautiful Disaster The Leading Conference on From the student perspective, the new Broadband Technologies and Services semester does not start on the first day To Exhibit or Sponsor, contact: Irene Prescott at of class, but on the day he or she moves [email protected], or call 316-733-9122. into new housing. As parents are tear- For other inquiries, call 877-588-1649, or visit www.bbpmag.com. fully saying, “Good-bye, study hard,

October 2009 | www.broadbandproperties.com | BROADBAND PROPERTIES | 13 they become more stable as the number of subscribers grows. Being able to rule out most design-related issues when troubleshooting also simplifies deployment and support. From a support standpoint, help desk personnel must have complete access to network monitoring and management tools. So equipped, a help desk will usually know about problems before they become apparent to residents. These tools allow personnel to quickly resolve problems proactively and eliminate the need for time-consuming, reactive “find and fix” troubleshooting practices. If a help desk has been fixing sys- temic problems proactively, then the vast majority of student-housing Internet problems encountered during semester turn will be related to connectivity. If the infrastructure has not changed since the previous semester, these connectivity issues tend to originate with students’ computers. In this situation, a properly staffed help desk should be able to answer calls in less than 30 seconds and resolve roughly 90 percent of all calls in less than 10 minutes. The balance of the calls will be infrastructure-related and require physical intervention to resolve. Another significant advantage of standards-based managed service is that it allows providers to reduce costs by centralizing support. Because support personnel see the same problems from semester to semester, they can identify and correct recurring problems, resulting in a significantly lower contact rate. The contact rate for managed service after the first month of operations is roughly 2 percent of the total number of active accounts, of which roughly 11 percent require a truck roll. If we compare this to the contact rate for DSL services of 30 In sharp contrast, the property in dents. More important, costs increased percent, we can see that next-generation Exhibit 2 did not require continuity for everyone involved and the residents services are an order of magnitude more testing. As a result, wiring-related issues were left with a bad first impression of reliable than traditional modem-based accounted for a whopping 28 percent of the property on-site management and data services. trouble calls, larger than any other cat- the service provider. In the next issue, we will begin an egory. This created a cascading series of in-depth discussion of design and de- problems for residents, the owner, the Metrics ployment standards required for next- service provider and the wiring contrac- Next-generation Internet services re- generation Internet services. We will use tor. The resultant chaos during move-in quire builders to deploy consistent these standards as the foundation for seriously degraded what otherwise would standards-based solutions tuned to the dialogue about how we as an industry have been a smooth and pleasantly needs of a specific market. Because these can begin to rate communications infra- memorable experience for resident stu- solutions incorporate proactive support, structure. BBP

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By Joe Bousquin ■ Contributing Editor, Broadband Properties

This month we showcase the Trump Towers triplex in Sunny Isles Beach, Fla., a condominium designed for residents who expect the best of everything, including broadband. Our thanks to Hotwire Communications’ chief operating officer Eric Roden and head network engineer Chris Arisso for their assistance in preparing this feature.

he luxury residential and hospitality properties bear- two pieces of equipment: your chassis coming into the building the Trump name are known for their resident- ing and the individual ONT [optical network terminal] in Tpampering amenities and for the cutting-edge technol- each residence. If something goes wrong, chances are it’s one ogy infrastructure that enables those amenities. The Trump of those two things.” Towers triplex in Sunny Isles Beach, Fla., is no different from Combine that with Motorola’s AXSvision element manage- its predecessors. The project’s partners, which include the ment system (EMS), which includes an advanced graphical user Trump Organization, New York–based Dezer Development interface, and Hotwire can solve many problems right from and the Miami-based Related Group of Florida, knew they its own call center. “It’s a fully integrated, full-control EMS, would have to provide enough bandwidth to meet residents’ which allows us to see and do a lot more remotely,” says Eric needs today and into the future. This was a challenging propo- Roden, Hotwire’s chief operating officer. “Everything’s on one sition because the average buyer at this up-and-coming North Miami address was expected to have four video screens and to demand leading-edge, IP-based technology. To meet buyers’ anticipated demands, the partnership turned to Wynnwood, Pa.-based competitive local exchange carrier (CLEC) Hotwire Communications, an independent fiber optic service provider that focuses on multifamily deployments. Us- ing Motorola equipment, Hotwire rolled out a GPON solution based on Motorola AXS 2200 optical line terminals (OLTs). A single chassis populated with Motorola OLTs can serve more than 2,300 subscribers, which not only enables Hotwire to light all the towers’ units but also gives the company a single troubleshooting touch point when support is needed. “One chassis does everything, and that’s really the benefit you’re getting with a GPON deployment like this,” says Chris Arisso, Hotwire’s head network engineer. “You really have just

16 | BROADBAND PROPERTIES | www.broadbandproperties.com | October 2009 screen, so once you have a customer talking with a technician, you can actually see that customer’s individual ONT pop up in TELECOMMUNICATION AMENITIES TRUMP TOWER 1 real time, right on your monitor. It’s true plug-and-play, self- PACKAGES AND PRICING BULK CABLE CHANNELS INCLUDED Included in Monthly Master Association fee discovery technology, and it works how it’s supposed to work.” Over 75 Channels DIGITAL CABLE PACKAGES* All Packages include Digital Local Channels and over 50 Sirius Satellite Radio Channels. The single-vendor approach has not only helped cut back Digital Converter Box required the number of truck rolls to the property but also enabled Hot- DIGITAL PLUS $22.99/mo Over 200 pure digital channels! Over 30 commercial free music channels wire to light each unit with a flick of a switch. Even though Ability to add on premiums and get Pay Per View DIGITAL MOVIE LOVERS $32.99/mo Over 250 pure digital channels! pulling the fiber backbone through the towers took months, Over 40 commercial free music channels Includes The Movie Channel and 7 Encore channels FREE! activating the service took only a day. THE WORKS $62.99/mo Every channel we offer - over 300 channels! Includes over 30 Premium Movie Channels! “The GPON system is basically a one-day type of installa- (with HD subscription) tion after the fiber infrastructure is put into place,” Arisso says. PREMIUM MOVIE PACKS Must subscribe to a Digital Cable Package to add Premium First Premium $14.99/mo 1. 2. 3. 4. “Because it’s a passive technology, there aren’t that many pieces Second Premium $12.99/mo T hird Premium $11.99/mo to touch. It allows us to build very quickly and continue to Fourth Premium $10.99/mo Order The Works to get every Movie Pack! be competitive.” HDTV PACKAGES Requires HD Ready TV and HD Converter Box HD PACK $10.00/mo Up to 75 HD channels! Hotwire used Motorola 1400 GT ONTs to feed a triple play of voice, video and data to each unit, with Motorola VIP HD SUPERPACK $20.00/mo Includes NBA HD, NHL HD, HDNet Movies and more! OTHER PRODUCTS 1216 set-top boxes supporting IPTV service. Through a bulk DVR $12.99/mo* Pause, rewind and replay live TV! Plus, record your favorite shows and watch them whenever you want! *$12.99/monthly fee is in addition to your converter box arrangement with the developers, Hotwire provides a standard fee and applies per digital converter box. video and data package, included in residents’ condominium DIGITAL CONVERTER BOX $4.99/mo HD CONVERTER BOX $6.99/mo fees, of 75 television channels and 7 Mbps downstream/1 Mbps HIGH-SPEED INTERNET INCLUDED Free “HWMAIL.NET” Email Account upstream Internet access. These basic services are automatically Expanded Virus Protection and Anti-Spam Abundant Storage activated when residents move in and upgrades are available for Up to 7 Mbps! PHONE SERVICE $29.99/mo Includes Unlimited Local and Long Distance Calling expanded video offerings, faster upstream data speeds and IP- Voicemail $5.00/mo based telephony. The network is capable of supporting Internet Advanced Web-based Phone Features $1.99/mo* *FREE

Packages and prices subject to change. Taxes, fees, and usage charges additional and apply to free, discounted, and speeds up to 100 Mbps. non-discounted offers for all Hotwire packages, products, and services. Digital Cable Converter box required to view Digital Cable service. Subscription to Digital Cable required to receive DVR/HD-DVR service, HD SuperPack, Premium CALL NOW! Digital Movie Packs, and International programming packages. Some HD channels only available with Digital Movie Lovers or The Works packages. Actual speeds for Standard and Premium Internet service will vary due to a variety of (800) 355 5668 Other IP-based services are also available to residents. As factors. Alaska, Hawaii, and Puerto Rico not included in Unlimited Nationwide calling area. Certain restrictions apply. www.gethotwired.com/trumptower1 one would expect in an oceanfront property bearing the Trump TRUMP_01_09 name, residents can interact with the buildings’ management and concierge through IP-enabled touch screens installed in Technology their units. At the touch of a digital pad, they can communicate How does the fiber get to the property? Fiber enters the property with other building residents, reserve meeting rooms, request va- at a Motorola AXS 2200 OLT chassis capable of supporting let service, schedule service calls or send and receive e-mails. more than 2,300 subscribers. Vital Stats How is fiber distributed inside the property? Fiber is brought to Trump Towers in Sunny Isles Beach, Fla., with three towers of each tower through a horizontal subterranean conduit and 271 units each, is a premier high-rise condominium develop- distributed vertically through the buildings’ conduit risers. ment just north of Miami built by a partnership consisting of A splitter on each floor routes fiber to a Motorola 1400 GT the Trump Organization, Dezer Development and the Related ONT in each residence. From the ONT, runs of RG-6 (co- Group of Florida. Boasting the luxury amenities that are the axial cable, for video) and Cat 5e (Ethernet cable, for data) Trump hallmark, the residences include private elevator foyers, lead to an average of three wall plates per residence. 10- and 11-foot ceilings, floor-to-ceiling windows and views of the Atlantic Ocean and Intracoastal Waterway. Wolf and Sub- Zero appliances are kitchen standards, while Italian cabinetry and granite and marble countertops grace the kitchens and bathrooms. In-building amenities include 24-hour concierge services, a three-story lobby, state-of-the-art fitness center and health spa and access to 250 feet of sugar-white beachfront. Greenfield or retrofit? Greenfield Number of units: 813 High-rise/mid-rise/garden style? High-rise Time to deploy: Fiber long-haul, vertical and horizontal deployments were completed during the construction phase over a period of several months. Implementation of the Motorola AXS 2200 OLT chassis was completed in a single day. Date services started being delivered: January 2008

October 2009 | www.broadbandproperties.com | BROADBAND PROPERTIES | 17 Why did you choose this distribution architecture? The single Do residents have a choice of service providers? No. Although point of implementation simplifies servicing and trouble- Hotwire does not have an exclusive service agreement in shooting. If something goes wrong, chances are it’s either the Towers, it is the sole provider at present. Standard at the chassis or the individual ONT in the unit. Using the video and data services (75 channels, 7 Mbps downstream/ AXSvision EMS, we’re able to monitor and troubleshoot 1 Mbps upstream Internet speeds) are included in residents’ any issues remotely, drastically reducing our need for physi- condominium fees. Homeowners have the option to up- cal truck rolls. grade their video and data packages, as well as to choose an What is the FTTH technology? This GPON deployment uses IP-based telephony package for an additional monthly fee. a Motorola AXS 2200 chassis at the point of entry, a Mo- See the accompanying rate card for details. torola 1400 GT ONT in each unit and Motorola VIP 1216 Who provides support? Hotwire provides all support. With the IP-capable set-top boxes for video delivery. single-point implementation, coupled with the AXSvision Where is the ONT located? The Motorola ONT, which is a sin- EMS system, most problems can be solved remotely. gle-family unit, is placed in a closet inside each residence. Business From there, RG-6 and Cat 5e cable runs lead to structured- Who owns the network? Hotwire owns the network in the build- wiring panels in the homes. ing and has a service-level agreement in place with the con- How was the technology installed to reduce cost and protect the dominium association. aesthetic? During construction, fiber was laid in conduit ris- Was there a door fee? Hotwire paid a confidential fee to the ers throughout the buildings. development partnership. Have you provided wireless signals within units, or are residents Are services automatically included in the rent or condo fees? Yes. free to set up their own wireless access points? Residents are free to set up their own wireless networks within their homes. Who handles billing and collection for premium services? If residents choose to upgrade their services, Hotwire bills them Services directly. Does the building have triple play-services? Yes. How are the services marketed and by whom? When they move Can residents subscribe to IPTV? Yes. Hotwire is using IP pro- in, residents receive orientation packages and can choose tocols delivering multicache technology with MPEG-2 and to upgrade services at that time. By visiting Hotwire’s Web MPEG-4 streams. Motorola’s MPEG-4 HD encoders and site, residents can see all the additional programming, data IP set-top boxes allow us to offer more than 40 HD chan- and telephony packages available in their building. nels and 300 VoD channels. What has been the return on this implementation, in dollars or Are there amenities beyond the triple play or IP systems for man- otherwise? This implementation has allowed us to meet cus- aging the property? Hotwire deployed and maintains several tomers’ expectations and demand for leading-edge technol- Wi-Fi hotspots in the common areas, including the pool ogy. We’ve also found that residents at this community, and beach areas. Other amenities delivered over Hotwire’s with an average of four video screens per unit, are very network include touch panels in the units for concierge ser- technology-aware and expect to be able to do what they vices. Residents can make requests to the property manager want with the various devices in their homes. As more and and receive notices about community events and package more devices become data-centric, we’re seeing convergence deliveries. The system is also capable of providing surveil- on a daily basis, such as refrigerators with TV sets built in lance services to residents. to them or with a coaxial or Ethernet jack in the back.

18 | BROADBAND PROPERTIES | www.broadbandproperties.com | October 2009 Onsite Experience/ someone who’s going to go through doesn’t have somebody next to him Lessons Learned the implementation with you so you whose been down this road before, What was the biggest challenge? can troubleshoot it together. The last he’s not going to be very happy for Chris Arisso, head network engineer, Hot- thing you want is a vendor who’s go- the first two or three deployments. wire: The biggest challenge was en- ing to sell you the equipment and Finally, test everything twice, suring that the fiber backbone and then turn their back on you. document everything three times infrastructure were laid correctly If there’s a property owner out and then test it again after you’ve from the beginning. While the sin- there that’s trying to do something documented it to make sure it’s gle-point implementation has huge like this for the first time, if he right. BBP advantages in terms of troubleshooting when issues arise, that’s all predi- cated on the network’s being set up correctly in the first place. With three towers coming out of the ground, you’ve got at least 750 Prepare your community for tomorrow fiber strands. And because we do du- plex on a lot of these, you have 1,500 with Connexion Technologies… fibers coming into the community. If one of those is wrong, or a split is done incorrectly, you’ve got to mul- tiply that all the way through from your split count and how much fiber you’re actually working with. The details will kill you. You’ve got to make sure everything is right from the beginning and make sure each point and segment is documented and tested so when it comes time to turn everything on, you know exactly where everything is and you know it’s going to work. What was the biggest success? Eric Roden, chief operating officer, Hotwire: One-day implementation of the Mo- torola chassis. Assuming everything has been installed correctly, when you turn it on and it connects to the ONT in an individual unit, you can see the serial number on that piece You can provide for the ever-changing technological needs of equipment and mark it. Now you of residents without touching your budget. By partnering with know exactly where it is and you can Connexion Technologies to install a cutting-edge Fiber to the always keep that information. Then, Home network in your community, your residents can enjoy the because we have AXSvision, we can best entertainment and communications services delivered over a fiber-optic network. This network will also be ready to handle see everything on one screen. Once almost any new service that comes to market. you get a customer on the line with a technician, you can actually see that ONT pop up in real time. This is true Find out more at www.connexiontechnologies.net plug-and-play self-discovery, and it or contact us at 919.535.7329. works the way it’s supposed to work. What would you say to owners who want to deploy a similar network? What issues should they consider before they get started? Chris Arisso: You’ve got to choose the right partners. You’ve got to partner with

October 2009 | www.broadbandproperties.com | BROADBAND PROPERTIES | 19 FTTH Market Report 908,000 New FTTH Customers! A Record Summer for Fiber Led by Verizon, fiber-to-the-home deployers clocked their strongest half-year yet, returning to the long-term growth trend abandoned last fall.

By Steven S. Ross ■ Broadband Properties

ouncing back from the recession, fiber-to-the-home deployments The 908,000 new FTTH connections bring the Bset records for the six months ending in October 2009: North American total to more than 5 million. • More new connections – 908,000 Take rates for fiber continue to rise even in new FTTH customers. • More total FTTH connections, competitive environments, reflecting higher which crossed the 5-million thresh- customer satisfaction with FTTH. old in early August. Just three years after reaching the million-customer mark, the industry now adds In addition to confirming fiber’s Render also found that FTTH ac- 300,000 customers a month. strong health in a period of economic cess correlated strongly with establish- • Higher take rates – now above 53 adversity, the newly released data offers ment of home-based businesses. The percent for non-RBOC deployers new evidence of fiber’s contribution to survey, taken during the depth of the and 28 percent for Verizon – con- the economy. economic troubles in spring 2009, shows tinuing an inexorable rise uninter- 15.7 percent of those with DSL run a POWERING THE NEW ECONOMY rupted even by the deployment slow- home-based business, versus 17 percent Surveys over the past few years have down of last fall and winter. of those with FTTH. shown that reliable broadband connec- The improvement in overall take At the sample size used, the chances tions are associated with more telecom- rates continues despite an almost to- of this statistical association’s being spu- muting. Render’s newly released data tal absence of greenfield deployments. confirms that finding and adds a new rious are only about 1 in 10. But that In earlier years, high take rates in new dimension – fiber. Some 44 percent of assumes broadband users in all parts of housing developments, often 70 to 80 FTTH subscribers telework, compared the country are equal. We know, how- percent or higher, helped make up for with only 29 percent of those with DSL ever, that the Northeast – where most lower take rates in competitive over- connections and 37 percent of those of the FTTH is – has been a national builds. Now that the competition is on with cable modems. pacesetter in creation of home-based the run, greenfield deployments have More than bandwidth and reliabil- businesses since long before the advent become less important. ity are in the mix, of course. Those who of FTTH. The new data comes from research expect to telework – and Render prefers Nevertheless, the economic impact conducted by Michael Render of RVA that term to telecommuting, as many of even that small percentage differ- LLC, a market research firm based in work-at-home personnel have no office ence could be huge. Nationwide, the Tulsa, Okla. In September, he released to commute to – tend to seek fiber-con- 1.3 percentage-point difference in busi- his newest report at the FTTH Coun- nected homes in the first place. ness formation between households cil annual conference, in Houston. De- ployment information is based on tallies taken by Render in August and Septem- About the Author ber, while consumer data comes from his Steve is corporate editor of Broadband Properties. See his blog, “Take it to the Bank,” survey last spring of 3,000 broadband at www.bbpmag.com. He can be reached at [email protected]. users, culled from a panel of 100,000.

20 | BROADBAND PROPERTIES | www.broadbandproperties.com | October 2009 FTTH Market Report with “pretty good” DSL and those with “great” FTTH would amount to about 1.5 million new businesses and full-time- equivalent (FTE) employment equal to roughly half a million jobs (some econo- mists say FTE per home business is even higher during bleak economic periods).

More Than 2M Homes Passed As investors panicked and fortunes evap- orated in fall 2008, money to finance new FTTH builds dried up. Only those deployers that used their own retained earnings or that had lined up financing ahead of the September 2008 collapse were building last winter and spring. Investors started testing the market this past summer – with timidity. And FTTH penetration by state for the lower 48 states; the deepest green indicates states with penetration the stimulus program for broadband ac- rates of 10 percent or more. Pure white indicates states with close to zero penetration. tually delayed some deployments while potential deployers waited to see whether cause Verizon typically operates in more now 31 percent, up from 27 percent a they would be eligible for federal loans or competitive environments, the smaller year ago. grants. Thus, the showing of the past six entities accounted for about a third of Indeed, FTTH deployments in the months is all the more remarkable. the new FTTH customers. six months just ended rebounded by all North American FTTH deployers, What’s more, deployers of all kinds measures – homes passed, marketed and almost all of them in the United States, were willing to spend on marketing. The connected – and returned to the long- passed 2,029,100 additional homes in increase in homes marketed for FTTH term trend we’ve been calculating since the six months ending October 2009. smashed all previous highs. The last six 2005. This was true whether we calcu- Despite the weak economy and a dearth lated the rise in absolute numbers or in months saw more than 2.5 million new of greenfield deployments, the total came percentages (see table below). homes marketed for FTTH, about 10 close to the record of 2.21 million set in Render was unable to supply an up- the six months ending March 2008. percent above the previous high, which date on the number of FTTH video cus- Non-RBOC entities, typically mu- was recorded for the six months ending tomers before press time. Nevertheless, nicipalities expanding their existing September 2008. with more than 15 percent of all homes footprints or Tier 3 local exchange car- By September 2008, of course, the in the United States now passed by fi- riers (LECs) overbuilding their own greenfield market was softening, reduc- ber, FTTH technology is clearly now copper networks, accounted for about a ing chances for easy sales, but take rates a major player in both broadband and quarter of the homes newly passed. Veri- continued to climb anyway. The ratio of video services. zon deployed almost all the rest. But be- homes connected to homes marketed is COMPARISONS Bandwidth supplied by FTTH providers Growth or decline, half over half is, on average, greater than that offered by cable or DSL providers. The biggest FTTH Homes FTTH Homes FTTH Homes Video gap is in upload speed, where FTTH en- Passed Marketed Connected Customers joys a 5-to-1 advantage over both DSL Apr-06 -57% 252% 23% 1018% and cable modems. Render expects cable Sep-06 333% 27% 176% -2% speeds to increase over the next year as Mar-07 -5% -16% 38% 37% large cable providers continue to phase in DOCSIS 3.0. But FTTH speeds will Sep-07 -19% -13% 42% 118% increase even faster, he emphasizes. Mar-08 43% 54% 16% 33% Smaller cable companies are trying Sep-08 -7% 10% 10% -6% to improve bandwidth for customers by Mar-09 -35% -34% -22% -17% laying more mid-mile fiber and by split- Sep-09 51% 66% 37% NA ting DOCSIS nodes so each node serves fewer homes. Most cable companies, FTTH homes passed, marketed and connected increased at stellar rates after a slow fall and winter. fearing open-access requirements, boy-

October 2009 | www.broadbandproperties.com | BROADBAND PROPERTIES | 21 FTTH Market Report

FTTH Homes Passed, September 2009 FTTH Homes Connected, September 2009 (Cumulative, North America) (Cumulative, North America) 17,200,000 5,500,000 18,000,000 5,330,600 16,000,000 15,170,900 5,000,000

13,825,000 4,422,000 14,000,000 4,500,000

12,000,000 11 ,763,000 4,000,000 3,760,000 10,000,000 9,552,300 3,500,000 8,003,000 8,000,000 3,000,000 2,912,500 6,099,000 6,000,000 2,500,000 2,142,000 4,000,000 3,625,000 4,089,000 2,000,000 2,696,846 2,000,000 35,700 110,000 189,000 19,400 72,100 180,300 1,619,500 1,500,000 1,478,597 970,000 0 Sep-01 Mar-02 Sep-02 Mar-03 Sep-03 Mar-04 Sep-04 Mar-05 Sep-05 Mar-06 Sep-06 Mar-07 Sep-07 Mar-08 Sep-08 Mar-09 Sep-09 1,000,000 0 1,011,000 0 0 671,000 312,70 500,000 213,00 Source: RVA LLC 64,700 78,000 146,50 5,500 10,350 22,500 38,000 548,000 - FTTH deployers in North America, almost all in the U.S., passed 2.03 million Sep-01 Mar-02 Sep-02 Mar-03 Sep-03 Mar-04 Sep-04 Mar-05 Sep-05 Mar-06 Sep-06 Mar-07 Sep-07 Mar-08 Sep-08 Mar-09 Sep-09 additional homes in the six months ending September 2009. Despite the Source: RVA LLC weak economy and a dearth of greenfield deployments, the total came More FTTH customers signed on in the past six months than in any previous close to the 2.21 million record set in the six months ending March 2008. six-month period. The rate of homes connected is now 31 percent of those passed, up from 27 percent a year ago. Rates differ substantially by FTTH Homes Marketed, September 2009 circumstance and type of build. The continued rise in the take rate comes (Cumulative, North America) despite a loss of greenfield deployments, where take rates often top 80 16,380,100 16,000,000 percent. 13,875,600 14,000,000 12,369,000 12,000,000 Homes Passed, Marketed, and Connected in Each Six-Month Period 10,082,065 10,000,000 Since March 2004 (Calculated by BBP from RVA Data) 3,000,000 7,996,400 8,000,000

6,643,000 2,500,000 6,000,000 5,079,999 s 4,000,000 2,000,000 3,218,600

0 1 2,000,000 1,500,000 1,754,300 10,000 19,400 35,700 72,100 1 180,300 189,00 413,22 829,700 0 1,000,000 Sep-01 Mar-02 Sep-02 Mar-03 Sep-03 Mar-04 Sep-04 Mar-05 Sep-05 Mar-06 Sep-06 Mar-07 Sep-07 Mar-08 Sep-08 Mar-09 Sep-09 Home American North

Source: RVA LLC 500,000

The increase in homes marketed for FTTH in the most recent six-month 0 Mar-04Sep-04 Mar-05Sep-05 Mar-06Sep-06 Mar-07Sep-07 Mar-08Sep-08 Mar-09Sep-09 period set a record – more than 2.5 million, or 10 percent above the In six months ending: Mar-04Sep-04Apr-05Sep-05Jan-06Apr-06Sep-06Mar-07Sep-07Mar-08Sep-08Mar-09Sep-09 previous high, the six months ending September 2008. Passed 8,700 781,000 649,500 1,077,346 928,154 464,000 2,010,000 1,904,000 1,549,300 2,210,700 2,062,000 1,345,900 2,029,100 Marketed 70,300 8,700 224,221 416,479 924,600 1,464,300 1,861,399 1,563,001 1,353,400 2,085,665 2,286,935 1,506,600 2,504,500 Connected 13,300 68,500 66,500 99,700 235,300 123,000 340,000 467,597 663,403 770,500 847,500 662,000 908,600 Video Connected 7,750 27,825 50,400 13,500 8,600 150,900 147,900 202,600 442,600 587,000 554,000 459,300 cotted the first round of broadband stimulus funding. But the In the six months ending in September 2009, FTTH deployments names of as many as 83 cable companies show up in the initial rebounded by all measures – homes passed, marketed and connected. In fact, they returned to the long-term trend. RVA was unable to supply stimulus funding request summaries – and three-quarters of video data before press time. the projects are for the middle mile. CUSTOMER APPROVAL Customers who have FTTH say it beats other broadband de- All this progress comes despite customer uncertainty about ployment technologies by every measure of service, bandwidth FTTH; Render reports that only 28 percent of the public even and reliability except for the in-home installation process. Cus- knows what FTTH is and understands its advantages over tomers complain about installation no matter who the service other broadband delivery technologies. Indeed, lack of public provider is – all providers are struggling to bring more band- awareness about FTTH translates into a generally blasé atti- width and flexibility to home networks. tude about fiber – until, of course, a potential customer sees it When it comes to video, the customer satisfaction gap be- in action in a neighbor’s home. tween FTTH and other technologies opens extra wide: In Ren- der’s surveys, FTTH wins in every category of service. FTTH now also tops the list of desired amenities in greenfield developments, and the gap between FTTH and second Only 28 percent of the public place (green space for walking or jogging) is especially wide is even aware of FTTH and its among current FTTH users. It is clear that buyers of new homes – a younger-than- advantages. But those who see average demographic – are more likely to be among that 28 percent who know about FTTH. FTTH in action want to sign up for Now, if the economy would only improve enough to reig- it, and those who sign up for it nite the greenfield market! BBP are happy with it. For more information about RVA’s research and publications, see www.rvallc.com.

22 | BROADBAND PROPERTIES | www.broadbandproperties.com | October 2009 FTTH Market Report

Overall FTTH T a ke Rate, RBOCs Overall FTTH T a ke Rate, RBOC vs Non-RBOC (Cumulative, North America, September 2009) (Cumulative, North America, September 2009) 30% 28.0% 60% 27.0%

52.4% 52.4% 53.1% 25.0% 51.0% 51.8% 48.2% 23.0% 50% 47.4% 51.5% 51.9% 52.6% 43.7% 41.3% 20% 19.0% 40% 17.6% 35.4% 31.2% 32.5% 35.9% 30.4% 28.4% 34.5% 30% 15.5% 26.8% 14.6% 26.0% 31.8% 29.0% 28.8% 9.8% 20.8% 19.9% Overall FTTH 10% 20% Non-RBOC 22.3% 18.4% 8.3% 3.0% 10%

0% 0% Sep-04 Mar-05 Sep-05 Mar-06 Sep-06 Mar-07 Sep-07 Mar-08 Sep-08 Mar-09 Sep-09 Sep-01 Mar-02 Sep-02 Mar-03 Sep-03 Mar-04 Sep-04 Mar-05 Sep-05 Mar-06 Sep-06 Mar-07 Sep-07 Mar-08 Sep-08 Mar-09 Sep-09 Source: RVA LLC Take rates for FTTH (homes buying services as a percentage of home Take rates specifically for RBOCs (the data is almost entirely from Verizon) marketed) continue to rise. Take rates for RBOCs (mainly Verizon) have continued to climb during the past six months, despite the recession. been improving since they began marketing video services. Non-RBOC Although deployments slowed, marketing surged ahead. take rates tend to be higher than RBOC rates because, until recently, more of their deployments have been in greenfield developments. Broadband Performance (Median) Source: RVA survey March 2009

Download, Mbps Upload, Mbps Percent of US Households Passed and Connected to FTTH 16% 10.4

14%

Passed 12% Connected 6.9 10%

6% 2.4 1.5 4% 0.5 0.4 2%

0% FTTH Cable ModemDSL Aug-04 Feb-05 Sep-05 Mar-06Oct-06Apr-07Nov-07Jun-08 Dec-08 Jul-09 Jan-10 Bandwidth supplied by FTTH providers is greater than that offered by More than 15 percent of all homes in the United States are now passed cable or DSL providers. The biggest gap between FTTH and cable is in by fiber, making FTTH technology a major player in broadband and video upload speed, where FTTH enjoys a 5-to-1 advantage. services. About 4.6 percent of all U.S. households were connected to FTTH by last month.

FTTH Sa�sfac�on vs Other Broadband % Very Sa�sﬁed Compara�ve Adop�on Rate, FTTH vs Coax and Copper Pairs Source RVALLC Spring 2009 Source: RVALLC September 2009 300% FTTH Other broadband Copper n 250% 70% 70% Coax 67% 63% 64% 64% 65% oduc�o 58% 200% Fiber 52% 55% 47% 47% 150% owth a�er Intr a�er owth 100%

50% Annual % Gr

0% 345678910 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Consistency of Broadband Provider's Internet overall Reliability - Installa�on speed speed customer service up�me process Ten years after initial deployments, FTTH continues to rack up faster service adoption rates than did coax or copper twisted pair at similar points in FTTH beats other broadband deployment technologies by every measure their life cycles. of service, bandwidth and reliability, customers say, except for the in-home installation process. All deployers are struggling to bring more bandwidth and flexibility to home networks.

October 2009 | www.broadbandproperties.com | BROADBAND PROPERTIES | 23 FTTH Market Report

FTTH Sa�sfac�on vs Other TV Delivery, % Very Sa�sﬁed Correla�on of % who have done telework Source RVALLC Spring 2009 with Download/Upload speed (Mbps) FTTH Other broadband 50% 74% 69% 70% 69% 45% 61% 60% 56% 54% 40% 51% 49% FTTH 41% 40% 35% Cable

30% Mode

25% DSL

20% Quality of HD Standard Number of HD Number of Video on HD TV overall 01234567 picture television channels standard Demand overall channels FTTH access is strongly correlated with working at home, in RVA customer survey data from last spring. When it comes to video, the gap between customer satisfaction with FTTH and with other technologies opens wide – FTTH wins in every category of service. General Public Awareness of FTTH: Source: RVALLC Spring 2009 Importance of Development Ameni�es if Shopping Aware for New Home 28% Source: RVALLC Spring 2009

Internet from a direct ﬁber 82% op�c line 69%

65% Green space / walking, jogging 62%

56% 24 hour neighborhood patrol 59%

36% Community pool / park 39% Current FTTH Users 35% Non FTTH Users Fitness center / Club house 36%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Not aware FTTH now tops the list of desired greenfield amenities – and the gap 72% between FTTH and second place (green space for walking or jogging) is especially wide among current FTTH users. RVA reports that there is still considerable customer uncertainty about FTTH. Only 28 percent of the public even knows what FTTH is about and how it compares with other broadband delivery technologies. Projected Bandwidth Gaps: FTTH vs Other Te chnologies General Public Interest in FTTH If Available 16 FTTH Source: RVALLC Spring 2009 14 Cable Would keep exis�ng service 54% 12 DSL 10 10 Mbps symmetrical $40 28% 8 6 20 Mbps symmetrical $60 16% 4 Download Speed (Mbps) 2 100 Mbps symmetrical $145 3% 0 2008 2009 2010 0% 10% 20% 30% 40% 50% 60% RVA expects cable modem speeds to increase over the next year as DOCSIS General lack of awareness about FTTH translates into a generally blasé 3.0 continues phasing in. FTTH speeds are set to increase even faster. attitude about fiber – until, of course, a potential customer sees it in action in a neighbor’s home. Note the sharp price sensitivity.

Adoption of FTTH is driven both by entertainment – customers greatly prefer fiber-based video services – and by its advantages for telecommuting and running businesses from home.

24 | BROADBAND PROPERTIES | www.broadbandproperties.com | October 2009 FTTH Market Report

FTTH Te sted Average Bandwidth Trends Correla�on of % who have a home-based business with Download/Upload speed (Mbps) 12.2 17.2% 2009 4 17.0%

16.8% FTTH 7 2008 1.8 Download Mbps 16.6% Upload 16.4% Cable 5.2 Modem 2007 16.2% 1.1 16.0% DSL 02468101214 15.8% Mbps A detailed look at bandwidth offered over fiber shows an accelerating 15.6% 01234567 trend. FTTH access also correlates strongly with establishment of a home business, in the RVA data. At the sample size used, the chances of this statistical association being spurious are only about 1 in 10.

Fiber’s bandwidth advantage over other broadband technologies continues to grow. Because home-based businesses are strongly associated with bandwidth, making fiber to the home generally available could add as many as 1.5 million new home-based businesses.

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October 2009 | www.broadbandproperties.com | BROADBAND PROPERTIES | 25 MDU REPORT Q&A With Rick Hubbard, AT&T Connected Communities

AT&T is rolling out U-verse across its service territory, bringing fiber closer to – in some cases all the way to – homes and businesses to deliver IPTV and high-speed Internet access. AT&T Connected Communities is a specialized division of AT&T dedicated to creating alliances with apartment ownership and management groups, single-family builders, developers and real estate investment trusts within the 22-state AT&T footprint. Recently Broadband Properties had the opportunity to speak with Rick Hubbard, the vice president of AT&T Connected Communities, about his company’s strategy for marketing U-verse services in MDUs.

BBP: Last year, AT&T reorganized the Owners want to know that the AT&T experience Connected Communities program to work more effectively with property is the same in Miami as it is in Dallas. Our owners. What led you to do that? agreements may vary, but the property owners RH: We got really serious about this part of the business a little over a year and management companies want to sit down ago. We’d had a Connected Com- munities organization before, but it with one person, not seven different people. was localized – a lot of the decisions were left at the very local level. If serve property managers better than lateral is up to date, and everyone is you’re dealing with an organization we could before and also take key aware of promotional offers. Signing where the decisions are made at the learnings back to the network and a contract to have the property man- local level, you’ll get answer A in city product organizations. ager market on your behalf is mean- A and answer B in city B. But once It’s been an interesting and suc- ingless unless there’s someone local we began our U-verse deployment, cessful year. If I polled the top prop- who can make sure leasing managers we found the large owners wanted erty owners about the changes over have the information they need. to interface with folks who could the last year, they’d say, “While you give them the same answer for any of have a ways to go, you guys have wo- BBP: What does your typical agree- their properties across the country. ken up and gotten on the ball.” ment with an MDU owner look like? In May 2008 we put the whole RH: We have several bulk deals where Connected Communities group to- BBP: What types of consistency are services are included in homeowner gether with a general manager in owners looking for? fees or in the rent – there are pock- each of four regions who could en- RH: Owners want to know that the ets of the country where that’s more gage property owners for contracts, AT&T experience is the same in Mi- prevalent. Those deals are typically supported by account managers who ami as it is in Dallas. Our agreements structured with a discount off the go out to the properties and keep the may vary – not every property is the retail offer in return for 100 percent leasing managers informed. same – but the property owners and penetration. That led us to some interesting management companies want to sit We also offer exclusive marketing aha moments about this space, such down with one person to talk about agreements and nonexclusive mar- as how small the community of key 10 properties and not have to sit keting agreements. players is even though about 25 per- down with seven different people. cent of Americans live in some sort of The way we are organized now BBP: What determines which type of MDU. So we carved out the top ac- has given owners a good sense of agreement you use? counts and put them into a national who does what and what the esca- RH: It depends more on what the owner group with its own general manager. lation paths are. Our value propo- wants than what the carrier wants. The national team has people distrib- sition, once we’re through with the We have a model, and we’ll estimate uted throughout the country – those contracting phase, includes a local the outcome in terms of subscrib- are the folks who are most concerned account manager who makes sure ers for any type of deal the owner about consistency. Now we’re able to the leasing agent is trained, the col- specifies. Typically owners may also

26 | BROADBAND PROPERTIES | www.broadbandproperties.com | October 2009 MDU REPORT request either up-front payments or The most effective way to get residents revenue-sharing deals. We prefer to do incentive-based deals, where the interested in U-verse is to get the service higher penetration owners can drive, into the hands of leasing agents and owners. the more we’ll give them. In fact, most deals are structured that way Once they have the service at their own now. When we can get the owner and leasing agent to market on our homes, they start evangelizing it. behalf, we can get significant penetration in a short period of time. have gone to HD, so the owners start but they sure aren’t moving out be- thinking of HD as a differentiator. cause of it. BBP: What makes U-verse attractive We can also deliver U-verse TV to multifamily owners? Multiview, which is an innovative BBP: Are you seeing demand RH: Although owners value the ancil- feature that lets you track four shows related to telecommuting? lary revenue stream from the carrier all at one time, on one screen. You RH: Yes, some of the owners are pushing or cable company, what they value can access Multiviews for Sports, green initiatives and advertising the most is leasing or selling their prop- News and Kids, and there are Mul- ability to telecommute. Users need erties. That leads into the value of tiviews for ESPN GamePlan and to be set up with a good infrastruc- U-verse. Owners are divided about FULL COURT subscribers. ture for that, so the owners can lever- whether they want to offer a choice The other beauty about IP is that age the fact that we have broadband of providers, but they didn’t use to the numbers of channels are virtu- speeds with U-verse up to 18 Mbps. have a decent alternative for video ally limitless – it’s not sending all the BBP: How are you marketing U-verse except for satellite. Now they have channels to your set-top box at once, to residents? a choice that lets them future-proof only what you’re watching. RH: their properties with an all-IP sys- Then there’s the U-bar, which The most effective way to get resi- tem. When we’re the second pro- lets you go in through an Internet dents interested is to get the service portal, load up the cities you want vider, we really don’t mind, because into the hands of the leasing agents to know about and get the weather, in a lot of cases the residents want and owners. Once they have the ser- traffic, sports and stocks all on your a choice, and they like the new fea- vice at their own homes, they start TV screen – you can customize your tures, so we’ve seen good take rates evangelizing it. When the leasing own U-bar applications. Another ad- even where we’re the second. agent says, “I have it at our house and vantage of IP is that we can readily it’s great” – you can’t overestimate BBP: What about the U-verse service add applications and features, such how important it is to get the service is helping owners lease or sell their as the whole-home DVR, without in their hands, because they’ll market properties? switching out subscribers’ set-top it for you. That’s how it’s not like wa- boxes. It’s a software-only upgrade. RH: The early technology adopters ter or electricity. It’s so different that The other value is the high attach largely start off living in MDUs, you want them to be excited about it rate of those who buy TV also buying and they love the U-verse features, and explain it to the tenants. high-speed Internet access, proving particularly the whole-home DVR. A lot of the properties have a TV that consumers desire to bundle. The They can record up to four shows in the leasing office or Internet café, Internet access includes the in-home or else in the entryway or the club- at once and play them back on any wireless network with the residential house, and we’ll provide U-verse there TV in the house with one DVR. gateway. We hook the printers up to as a demo. Some properties have nice That lets them do time-shifting – my the Wi-Fi network, and the iPhones three teen-age daughters don’t have and other smart devices can jump demo rooms where you can open up to fight over their programs now. In onto the Wi-Fi network too. a Wi-Fi network and some of them a recent upgrade you can also sched- If you have our video and high- just have a little rental office. Regard- ule shows from any TV in the house. speed Internet services, your e-mail less of where the demo goes, we’re You can even schedule your DVR ID for home service also gives you finding that if we can get the remote from your iPhone, iPod touch or PC, free access to thousands of AT&T into residents’ hands we have a good or delete shows from the queue. Wi-Fi hot spots, including Star- shot at making them customers. People who go high-definition bucks. That’s been a huge value for For a lot of owners, it’s about become really HD-dependent – they us in what we pitch to the leasing making a big splash on the property. get hooked on the picture clarity. So agent when they ask how we’re dif- Many of them will let us host an we put a lot of effort into making sure ferent from our competitors. event, which can be really effective, we’re the HD leader in each market. It’s hard to say if people are mov- or they’ll do an e-mail blast. We’ll Some of the new tech-savvy residents ing in because of the U-verse service, put together a nice little package for

October 2009 | www.broadbandproperties.com | BROADBAND PROPERTIES | 27 MDU REPORT In MDUs, localized marketing efforts can reach technologies. This allows us to deliver on our customers’ increased a lot of consumers and technicians can be very bandwidth demands. For example, if the property is a big high-rise, we’ve efficient. But wiring issues can be difficult to used the building as the node, taking address. You need to make sure you have the the video equipment and placing it in the basement, then running fiber correct wiring coming in and that it’s spread out into the building and running Cat 5 throughout the property. cable or coax up. That’s very effective because it puts the video equipment in a conditioned space as close as Property X, and they’ll send it out BBP: What are the challenges of possible to the customer. for us. working with MDUs? There’s no such thing as a cookie RH: The attractive side of MDUs is the cutter, though. Our technicians BBP: Do you try to attract subscribers density of consumers. Localized through promotions? have to get involved and say, “Here’s marketing efforts can reach a lot of how we’re going to do this.” On new RH: We don’t do a lot of promotional consumers; if you do it right, you can pricing – we promote everyday low builds, we recommend the owners also get really, really good technician provide structured wiring to indus- pricing, and currently we offer cash efficiency. You’re not going seven back with additional incentives if try standards. It makes everyone’s miles from one house to another. lives a lot easier if you get it right you order online. The property own- There are also things we have to ers may also offer discounts by lever- up front. Owners may subcontract manage. Wiring challenges are much out the inside wiring or hire us to aging our current promotions. For easier to address in single-family the most part, when we price the ser- do it – but as long as they build to units than in a 200-unit MDU. If the specifications we’ve given them, vice it’s very price-competitive, even the wiring is set up correctly in an it goes very quickly. though it has feature advantages over MDU, you can get everything you other video providers. want – density, technician efficiency BBP: Do you ever use FTTP in overbuilds? BBP: How important is the and throughput. But you really need RH: installation experience? to make sure not only that the cor- Not on a broad scale, but maybe if rect wiring is coming in, but also there’s a substantial renovation going RH: We get very high marks on our in- that it’s spread out correctly through- on, we’d work with the engineers to stallation technicians. In the mul- out the property. We’ve had some see what makes sense. tifamily world, residents will use a buildings that were old and needed leasing agent as an ear to bend, and wiring work. BBP: How do you coexist with other we get a lot of remarks from leasing providers in these properties? offices about the professionalism of BBP: How long does it take to wire RH: What owners care about in a multi- the installers. Residents like the fact units for U-verse? provider world is the providers living that AT&T techs are employees, not RH: It depends significantly on the wir- in harmony with each other. If own- contractors. They like the fact that ing in the building. Putting fiber to ers have given the rights to the coax they’re highly trained and wear boo- the premises (FTTP) in a new build- to another company, we’ll just stay ties so they don’t track mud inside. ing is extremely quick. Even with on the telephone wire (twisted pair). The leasing office folks say that no fiber to the node (FTTN), if the In other cases they want us on the news is good news, and if there’s no structured wiring is done correctly, Cat 5 wires, or else they don’t mind ranting and raving about installa- we have experienced installs in un- if we use the coax, as long as we live tions, they’re happy. der an hour. When we do a bulk in harmony. We were born out of the phone building, we have techs there doing However, more and more new company – some people consider several units a day. We link up the buildings have Cat 5 everywhere and that as a negative, but it makes us video signal from the central office coax everywhere, and that’s a real very process-oriented and attuned to the building, do some tuning on easy way to live in harmony. There to availability and uptime. We’re not the first unit, and then we’re all set. are new and innovative wiring pan- going to send someone to open a tele- els, developed by several vendors and com closet who’ll say, “I’ve never seen BBP: How do you decide what used by all the companies, that allow this before.” Plus, their job isn’t over technology to deploy in any for peaceful coexistence. You open when the service is up. They’ll show particular MDU? up the wiring panel and the U-verse the owner how to use the remote RH: We’re upgrading our network plug goes here and the cable com- and the Internet. They don’t just say, to bring fiber closer to customers’ pany plug goes here. That’s the way “Here’s the TV, see ya later.” homes using FTTN and FTTP the world is going to be. Consumers

28 | BROADBAND PROPERTIES | www.broadbandproperties.com | October 2009 MDU REPORT Property owners have to consider the pros call and say that people are asking whether the property gets U-verse. and cons of exclusive marketing deals – is the The owners care about apartments being rented and renters being happy. additional ancillary revenue worth depriving They don’t want service outages or residents of a choice of service providers? property disruptions. An advantage of FTTN is very minimal disruption vote on what’s the best value for the in. For a large part of the population, to the property because we are riding money. And given that we’re the new except for brand-new builds, proper- copper already in the building. What owners care most about is entrant, we understand that and try ties already have service, so we have that when U-verse becomes avail- to play nice. to compete on a product basis. able, we have someone there to work It’s an interesting dynamic – at BBP: Have property owners and and market the service for the first one point the owners might have managers expressed concerns about time. After that, the leasing agents been attracted by the larger amount installing U-verse? will pick up on it. When a property of money for an exclusive provider RH: Most of their concerns have noth- is going green, you’ve got to be ab- deal, but then they’re leaving resi- ing to do with not liking U-verse, solutely sure that the first few orders dents with no choice. Is the little bit but with their contracts – they may go through fine. We make sure all of extra ancillary revenue worth it? already have an exclusive marketing the addresses are loaded into the As you know, the FCC has weighed deal with someone else. Sometimes database. Before we market a prop- in on exclusive provider enforceabil- we’re still willing to bring in U-verse erty and make a big deal about it, we ity. Owners are still split on that one. and let it stand on its own merits, but check through ordering the service – We’ve got several properties where U- that means their commissions may all the basic blocking and tackling. verse is the only service there, either go down. Our mission is to have customers, because the owner said so, or because Still, once you start getting buzz, owners and residents love U-verse another provider chose not to come a few managers and owners will from the very first impression. BBP

October 2009 | www.broadbandproperties.com | BROADBAND PROPERTIES | 29 MDU REPORT New Technologies For Deploying Fiber in MDUs There’s no silver bullet for deploying fiber in MDUs, but an arsenal of new weapons is making fiber installation faster and more economical.

A BBP Staff Report

ADC Innovations Bring Fiber to the Unit Deploying fiber all the way to the living slack on the spool behind the terminal. drop cable from the fiber distribution unit, once a rarity in multiple-dwelling- (Reduced-bend-radius fiber is relatively terminal to the living unit. Drop cable unit (MDU) buildings, has become more easy to store in limited spaces.) “Innova- is usually connectorized only on one end common today. Tom LeBlanc, FTTx tive ways of managing slack means you so it can be cut to length. Most deployers product manager for fiber connectiv- don’t have to have 100 different stub plug the connectorized end into the op- ity vendor ADC (www.adc.com), says, lengths to custom-engineer getting from tical network terminal (ONT) to avoid “Five years ago, people never dreamed point A to point B,” LeBlanc says. leaving shards near the living unit, then of the bandwidth they’d need. They Some ADC customers report that splice the other end to the fiber distri- probably believed fiber to the unit was adopting the Rapid Fiber System allows bution terminal. In brownfields, ADC overkill. Now, with bandwidth growing them to complete as much work in a day recommends preinstalling microduct and applications growing, the thirst for as they once completed in six days. Al- (usually above drop ceilings in hallways) bandwidth seems to be larger and faster though their fiber usage increases, sav- from the fiber distribution terminal to than people anticipated.” Now, many ings on labor and on splicing equipment living units and running fiber through property owners believe running fiber to lower overall deployment costs. the duct only when the customer takes the unit adds value to their buildings. Of course, the economic case is dif- service, to align costs with revenues. The sticking point for MDU deploy- ferent for every locality and building Because microduct can be costly, ments has always been the diversity of type. LeBlanc says, “I would encourage some deployers prefer to run fiber building construction. “Every building is each customer to go through the full cost through moldings where possible. For different, but we don’t want every prod- model and see if plug-and-play makes this type of installation, ADC offers uct to be different,” says LeBlanc, adding sense. We’ve built tools to help our cus- bundled drop cables that can be run that ADC is developing a standard set of tomers model splicing versus connector- down a hallway. Six or 12 fibers are tools to solve fiber deployment problems ization – they can plug in all the prod- wrapped together but not jacketed, al- in most common MDU building types. uct costs, make assumptions about labor lowing installers to peel off a single fiber costs and hours and see where the total at the entrance to each living unit and Rapid Fiber for costs per living unit come out.” splice it to a final drop cable that runs Vertical Distribution LeBlanc says the greatest demand to the ONT. LeBlanc says, “We’re still One of these tools, the new Omni- for plug-and-play products is in mid-rise looking at ways to eliminate that last Reach Rapid Fiber System, is a plug- and high-rise MDUs – buildings that re- splice. We can’t make the cable available and-play solution for vertical distribu- quire indoor distribution products with tion in MDUs. Using connectorized high fiber counts. Deployers typically in 1-foot increments, so we’ll need ways fiber in this application is much faster, place a 12-fiber or 24-fiber terminal on to manage the slack for individual drop easier and less risky than splicing. each floor of a high-rise building. cables, such as small wall boxes.” ADC’s Rapid Fiber Distribution Property owners also prefer plug- LeBlanc says the MDU market is Terminal has a built-in spool on which and-play deployments in their build- still in its infancy and fiber distribution technicians stock 3 mm fiber cable in ings. The installation process is faster systems for MDUs have plenty of room 100-foot, 200-foot or 300-foot lengths; and less disruptive, and the small hubs for improvement. “There may be another they pay out cable from the spool, pull and terminals are less noticeable. generation or two of products before we it easily through the building riser, plug feel like [our solution] is tough to beat,” it into a multifiber push on (MPO) con- The Last Leg he says. “But over the next few years, nector on the fiber distribution hub in ADC is also working on tools to speed MDUs will become a bigger and bigger the basement and store any remaining the final leg of the process – running market, so we’ve got to stay with it.”

30 | BROADBAND PROPERTIES | www.broadbandproperties.com | October 2009 MDU REPORT 3M’s One Pass Fiber Pathway Duct 3M’s newest MDU solution generated plenty of buzz at last In a typical hallway, 3M One Pass month’s FTTH Conference in Houston. The One Pass Fiber Pathway Duct, a horizontal cable pathway and drop cable solu- can be installed in two hours. tion, was developed in conjunction with Verizon for installing fiber in New York City apartment buildings. Now 3M (www.3m. using a mechanical splice. When a customer requests service, com) is marketing the solution to other service providers that are the installer can quickly plug the cable into the optical network installing fiber in brownfield buildings with indoor hallways. terminal in the customer’s apartment. The solution is also applicable to hotels, assisted living facilities, According to Linnea Wilkes, 3M marketing manager, in- hospitals, schools and small businesses. stalling the One Pass in a hallway – including attaching the The solution consists of a PVC duct coated with adhesive cables for each apartment – takes about two hours, compared and filled with six or 12 tight buffered fibers and factory- with a full day to install a latch-molding system. terminated at one end with SC connectors. (3M uses Draka BendBright XS bend-insensitive fiber, but other fibers could From Airplane Nose to Apartment Hallway be substituted.) The duct is packaged on a spool attached to a Wilkes says that after beginning work with Verizon in spring wheeled cart. After plugging the fibers into the fiber distribu- 2008, 3M engineers spent several months riding in construction tion terminal on each floor, technicians wheel the spool down trucks observing installations and talking with installers about the hallway, sticking the duct to the wall as they go and install- what they needed. Verizon installers said they wanted a solution ing the drop cable inside it in the same pass. An offset tool that they could install quickly and easily and that would be at- keeps the duct horizontal as the technicians make their way tractive enough to be welcomed by property owners. down the hallway. 3M, which is one of the world’s leading developers of adhe- The technicians then open a window cut over the doorway sives, found that an adhesive it was already selling to hold to- of each apartment and pre-position the final length of cable, gether metal plates in buildings and airplane noses would also

3M’s new flexible adhesive ribbon tape with embedded fiber makes deploying fiber around doors and corners easy. The breakout boxes also attach with adhesive. Only after customer signup does the ISP need to gain access to the living unit. The tape can be flush to the wall and plastered over; the pictures show a particularly inelegant installation to highlight the corner-handling ability of the system.

October 2009 | www.broadbandproperties.com | BROADBAND PROPERTIES | 31 MDU REPORT be appropriate for this application. After months of testing, brick or concrete.) Installers also can apply paint over the duct, the company established that the adhesive would bond perma- making it as inconspicuous as a bead of caulk. nently with most painted and wallpapered surfaces. (The adhe- Field trials of the new solution began in January 2009, and sive will not work with textured wallpaper or with unpainted the first commercial deployment was slated for October 2009. Fiber Distribution Terminals Wall-mounted fiber distribution panels from Clearfield (www. clearfieldconnection.com): The FieldSmart 144-port panel, which has been optimized for deploying PON-based fiber-to- the-home networks in MDUs, is able to support four splitters in a compact 24-by-26-by-8-inch footprint. Like other Clear- field equipment, this panel has the Clearview Cassette at its heart, allowing deployers to easily scale their networks.

Optical Network Terminals For the MDU, Motorola (www.motorola.com) sup- plies 12- and 24-unit mul- tiunit ONTs, along with a variety of unit-level ONTs. Some of the company’s ONTs include broadband routers and battery backups. Consolidating customer- premises devices by incorpo- rating broadband routers and battery backups into ONTs can save 30 to 60 minutes Ribbon cable for the 3M One Pass comes on a reel; the application per installation, according to head is mounted on a stick tall enough to reach the ceiling. Two Motorola’s Floyd Wagoner. installers can handle a long hallway run – one handles the applicator while the other feeds the cable. “That adds up to a lot of money,” he points out.

32 | BROADBAND PROPERTIES | www.broadbandproperties.com | October 2009 MDU REPORT Miniflex Shows Microduct for MDU Market Microduct is a popular solution for creating pathways in 16 90-degree bends takes between three and five minutes, the MDUs for future fiber deployments. At the FTTH Confer- company says. The microduct itself is easy to install and with- ence in Houston, the British optical cable company Miniflex stands rough handling. (www.miniflex.co.uk) introduced a microduct product with a Another advantage of the Miniflex microduct is its high few new twists. crush-resistance and bend-limiting features. Because the mi- Miniflex DVC Microduct is unusual in allowing deployers croduct has a limited bend radius, it prevents the fiber inside to push or pull optical cable through instead of using expensive it from being bent at angles that would cause optical loss. This air-blowing equipment. (Miniflex also offers a battery-operated eliminates the need for using reduced-bend-radius fiber, even micro cable pushing machine for long runs.) Cable can be inserted in complex routes. easily because the microduct is lined with a dynamic-velocity- The microduct can be used in walls, floors, risers, cable conserving (DVC) material that reduces friction and static dis- ducts, cable troughs and over ceilings. A plenum-rated version charge. Pushing cable through a 100-meter cable route with is under development. Fiber to the MDU: A GPON Chipmaker’s View As the world’s largest supplier of broadband chipsets, Broad- have the router as a separate piece,” Fisher says. “Once [Verizon] com (www.broadcom.com) focused until this year primarily gets more experience with the indoor desktop unit, and that ex- on the cable and DSL markets. Recently the company entered perience is positive, and the economics of integration versus the the fiber-to-the-home market with a GPON chipset, which risk of technology obsolescence makes sense, that’s a good direc- made its debut in the award-winning indoor ONTs designed tion to go in. The gateway may change faster than the ONT … by Alcatel-Lucent for Verizon to deploy in MDUs. Greg Fisher, vice president and general manager of Broad- though if the combined box doesn’t cost more than a broadband com’s carrier access business, offered these insights into the home router, it doesn’t matter. It’s a story yet to play out.” BBP MDU broadband business: “We’re now seeing a lot of activity in MDUs, where deployers are feeding fiber to the building or a near-in node, then distributing via DSL or Ethernet from those configurations. … At the moment there’s more fiber to the building than to the unit in MDUs. China Mobile is deploying GPON to the building, either to each floor in a high-rise or to the whole building. It’s not uncommon to bring fiber to a floor – it makes more sense where you don’t have a strong video business model, April 26 – 28, 2010 as in China. When you have a stronger video business model, InterContinental Hotel – Dallas fiber to the unit makes a lot more sense. Addison, Texas “The first example of an indoor ONT deployment [in The Leading Conference on Broadband Technologies and Services North America] used technology from Broadcom; now we’ll Broadband see if it’s making more sense to bring fiber to the user rather Properties than to the building in situations with high population den- Magazine sity. It’s probably another competitive weapon for the carrier, the newest sponsorsCongratulates and exhibitors joining the but it depends on what the building owner favors, and that’s 2010 Broadband Properties Summit. different in each case. It will be particularly useful where there is competition with cable; where there isn’t, there’s less of an BEC Technologies Occam Networks established precedent. Historically, some of the higher popula- Comcast Rural Telecommunications tion centers definitely have a cable precedent. … For a telecom Congress carrier to come into a building [as a competitor to cable], it has to offer a value proposition and an entire deployment model TAKE ACTION that [owners] are favorable to.” today and secure your participation! One version of Broadcom’s chipset integrates MoCA, a pro- To Exhibit or Sponsor, contact: Irene Prescott at tocol for distributing data throughout the home over existing [email protected], or call 316-733-9122. coaxial cable. This integration allows the ONT to serve as a resi- For other inquiries, call 877-588-1649, dential gateway. “If you can integrate the capability of the broad- or visit www.bbpmag.com. band home router into the system on chip, you wouldn’t have to

October 2009 | www.broadbandproperties.com | BROADBAND PROPERTIES | 33 MDU REPORT Q&A With Bryan Rader: The Changing Landscape for Private Cable Operators

Bryan Rader is CEO of Bandwidth Consulting LLC, a national firm based in Chesterfield, Mo., that offers consulting services to service providers in the multifamily market segment. Before launching Bandwidth Consulting, he founded and operated MediaWorks, a private cable operator (PCO). In his “Provider Perspective” column, which appears in every issue of this magazine, Rader shares his insights into the PCO business with BBP readers. Recently BBP spoke with him about the impact of today’s economic conditions and technology trends on independent service providers.

BBP: What is the economic climate Property owners do have a greater erties they shouldn’t be serving. If facing multifamily owners today? level of sophistication about technol- you pay a big incentive up front, you BR: This is a difficult time right now ogy than they did historically. They need to recognize that you’re taking for property owners; they are deal- understand the options, they know on the risk of property performance ing with a drop in total renter house- the difference between DIRECTV for seven to 10 years. Over that pe- holds across the country. They’re see- and FiOS, they know about the need riod, many things can change – the ing not only a decline in new-renter to bring choices to residents, they’re quality of the owners, of the prop- formation, but also vacancy rates aware they should focus on provid- erty, even of the location. higher than they’ve seen in several ing value or price according to the The reason revenue sharing has business cycles, with demand drop- resident profile. They’re sensitized to worked in the past is that it aligns ping quickly in many markets and all those things – but in certain cases, the interests of the property owner rental rates declining at a pace they because of the economic challenge, and the provider on trying to cap- haven’t seen in quite a while. the economic offer is outweighing ture as many of the new move-ins as Average rental rates are down sig- some of these issues right now. possible and to sell as many services nificantly across all product types and That’s particularly the case with as possible. But if you pay the entire regard to up-front payments. In years fee up front, you lose leverage over all regions – not just on the East and past, owners would sign contracts for the long term. That’s why you have West Coasts but in the middle of the seven, eight or 10 years that would to be smart about properties and lo- country as well. The declines aren’t at include fees paid over the life of the cations. Property selection demands the same level everywhere, but they agreement. Today, many owners are a high level of discipline. are presenting a broad-based chal- saying, “I want all of those fees in In addition, private cable op- lenge. So owners are now looking at month one.” So operators are getting erators are now competing with the all avenues for driving miscellaneous very aggressive in order to meet the 800-pound gorillas of the cable and income to their properties. This has demands of property owners around telco worlds. That ups the ante be- been an ongoing trend for the last 10 the country. cause in some instances [these large years, but it has accelerated today. companies are] very comfortable with BBP: How can PCOs compete in this BBP: How does the economic situa- paying significant up-front incen- kind of market? tives. That’s not a playing field PCOs tion affect the relationship between BR: This is a great opportunity for inde- should want to compete on – they PCOs and property owners? pendent broadband service provid- win when they compete on respon- BR: We’re now seeing some property ers that are well capitalized and well siveness, service and customization. owners driven solely by door fees – disciplined. If they’re smart about they’re making decisions based on economics, they can find tremendous BBP: What are multifamily residents economics rather than on customer opportunities to win great properties. looking for now? care or technology. They’re still ask- In past years, many providers BR: Broadband has really become a ma- ing the usual due-diligence questions, have not been disciplined enough jor priority. The bandwidth capacity but with an emphasis on economics. and have found themselves in prop- delivered to a property is very impor-

34 | BROADBAND PROPERTIES | www.broadbandproperties.com | October 2009 MDU REPORT Private cable operators can differentiate A number of operators are starting to talk to companies offering applica- themselves by offering value-added services, such tions to get into that space. That’s a new frontier – a point of difference in as extra broadband speeds for a gaming competing with the 800-pound goril- session or a movie download. las to offer value-added service. BBP: Are there other new services Netflix. Their telephone service will tant. Customers are becoming more PCOs should think about selling? broadband-centric than TV-centric. be cell phone only. Now, that’s the BR: I think security has become a hot- Especially in younger communities, young customer, which is still only a button issue again at a number of lev- broadband is more important than very small percentage of the total. the number of channels or high- els. Crime rates have gone up in cer- definition services. With a younger BBP: How can PCOs respond to this tain markets and owners are seeking clientele, there’s a shift to broadband trend? new security solutions for the fitness first and television second. The min- BR: I’m optimistic that this behavioral center, the leasing office, the commu- imum acceptable speed is going up shift presents more opportunities for nity as a whole. It’s a new opportunity every day. the service provider. We need to align for service providers. There are inter- The younger set grew up on ourselves with these technologies to esting notification methodologies broadband over the last decade. It’s a take advantage of them. Customers such as wireless solutions and visual central part of their lives, from social may be willing to pay more for pre- solutions. If incidents occur over- networking to shopping and enter- mium broadband – say, $5 to $10 night, the system can trigger cam- tainment – it’s a piece of everything for a two-hour session of premium eras to download video to property they do. Facebook, Gmail, YouTube, broadband for a game they’re playing. owners halfway across the country. Hulu – this is where they get their There are a lot of revenue opportuni- Service providers can make solutions news and entertainment. ties. Companies like Netflix are offer- available both to owners and to resi- You have to be prepared to sup- ing immediate downloads of movies. dents. BBP port the customer who places a priority on broadband. Be sure you have the right skill set on staff, the infra- Broadband structure to support faster speeds, Properties a pricing model that makes sense – Magazine this change has a potential impact on all aspects of the business. This is not Congratulates a short-term issue; it’s a fundamen- tal shift that’s more prevalent with younger customers, but we’ll eventually see it in all customer segments. BBP: Will broadband drive out For becoming the Monday and Tuesday Afternoon traditional video services? Break Sponsor at the 2010 Broadband Properties Summit. BR: I think we’re in the very early stages For more information on Comcast, visit www.comcast.com. of the “cutting the cord” trend. Again, You are cordially invited to come see Comcast at the upcoming it’s a generational shift. The adoption rate for reading news online versus on paper was a slow decaying model. The cable market still has a long-term future; it’s going to be a part of how our customers will get their information, but I think the broadband April 26 – 28, 2010 pipe will also become the centerpiece InterContinental Hotel – Dallas of the offering – the primary rather Addison, Texas than the secondary product. The Leading Conference on Twenty-somethings starting out Broadband Technologies and Services today [in their first apartments] will To Exhibit or Sponsor, contact: Irene Prescott at get a broadband connection. They [email protected], or call 316-733-9122.

might download television shows For other inquiries, call 877-588-1649, or visit www.bbpmag.com. for free and rent movies through

October 2009 | www.broadbandproperties.com | BROADBAND PROPERTIES | 35 MDU REPORT G.hn: A New Standard for Home Connectivity Home networking has been the final and most challenging broadband frontier. Thanks to G.hn, it’s about to become much simpler.

By Linda A. Schoener ■ Technology Writer

he first few meters inside the G.hn is expected to offer important advantages to home are proving to be more ex- Tpensive to conquer than the first service providers, property owners, homeowners mile. Network builders can now pass a home with fiber for $600 or less. But the and tenants. It will enable digital media devices home network needed to take advantage to communicate easily in a home network of fiber’s bandwidth has remained pricey due to its custom nature; every dwelling even if they use different types of wiring. unit presents new challenges. G.hn – standing roughly for “next- ITU‑T Recommendation G.9960: phys- have demonstration products (not yet generation home network technology”– ical layer (PHY) and architecture. But fully operational or ready for shipping) is one of several approaches to home the rest of the complex standard jelled on display at the International Con- networking that seek to make first- only this past spring, and final details sumer Electronics Show in Las Vegas in meter connectivity easier to handle. It with regard to digital rights manage- early January 2010. is a unified standard for wired in-home ment (DRM) were still being polished G.hn is the second wireline home networking being developed by the In- at press time. In general, G.hn will use networking standard developed by the ternational Telecommunications Union AES encryption but will be transpar- ITU-T in recent years. The earlier one, Telecom (ITU-T) Standardization Sec- ent to other devices’ encryption and HomePNA (ITU-T standard G.9954), tor and promoted by a trade group, the DRM schemes. is a home-networking standard for co- HomeGrid Forum. G.hn technology is axial cable and phone wires used by being designed to offer important ad- Products Available in 2010 service providers such as AT&T (for U- vantages to service providers, property In spring 2009, members of the once owners, homeowners and tenants. secretive ITU-T G.hn work group and verse). Following the same process used When it becomes commercial next Institute of Electrical and Electronics by the HomePNA Alliance, the Home- year, G.hn will allow networking of all Engineers (IEEE) standards develop- Grid Forum is working toward certify- types of digital media over unshielded ers began cooperating in a more formal ing compliance to the G.hn specification telephone lines, power lines and coaxial way. Although G.hn prototype chips and ensuring the interoperability of up- cable – the most common wires found have already been produced, the full coming G.hn products. The HomeGrid in today’s homes. G.hn will also be com- G.hn specification with DRM is not Forum Web site, www.homegridforum. patible with the two most widely used expected to receive consent from ITU- org, provides up-to-date information on Ethernet home networking technolo- T until this fall. The first product-ready the G.hn standards-setting process along gies, Cat 5 and Cat 6 wired Ethernet silicon chipsets will follow in early 2010 with useful information that can assist (IEEE 802.3) and wireless Wi-Fi (IEEE and G.hn products are expected to be- property owners and network builders 802.11). The new standard will enable come available later next year. Some in making decisions about future invest- multiple digital media devices to com- consumer electronics firms intend to ments in G.hn technology. municate more easily within a home network even if they use different types of wiring. About the Author The G.hn protocol obtained the Technology writer Linda A. Schoener can be reached at [email protected]. consent of the ITU-T last December as

36 | BROADBAND PROPERTIES | www.broadbandproperties.com | October 2009 MDU REPORT

The emerging G.hn technology is G.hn-enabled computing products since the creation of G.hn in 2006 even being shaped by stakeholders from the could include storage devices, printers though it has invested in HomePNA global telecom industry along with con- and phones as well as personal comput- for its U-verse deployments. Tom Starr, tributors from consumer electronics ers. G.hn is also being designed to con- lead member of technical staff at AT&T companies, personal computing com- nect personal computers to many other Labs and an active ITU-T contributor panies, silicon suppliers and IP licensing types of devices. “For example, if a home to the G.hn standard, said in the pre- companies. Service providers partici- user wanted to watch an Internet video viously mentioned HomeGrid Forum pating in the ITU-T G.hn work group on a TV, or send audio files, or play webinar, “One of the important distinc- include AT&T, British Telecom, China music throughout the home, or print tions between G.hn and some of the Telecom, France Telecom, NTT, Qwest files, or store information on a home- legacy home-networking technologies and Telenor. Work group members from network-to-patch-storage (NAPS) box, is that G.hn is being designed from the the home networking industry include [G.hn could support all] these types of outset to be part of a service provider’s ACN, Alcatel-Lucent, Aware, Conexant, applications,” Finocchiaro said. managed service to the customer.” CopperGate, DS2, Gigle, Infineon, In- tel, Panasonic and Texas Instruments. Challenge and Opportunity Faster Networks in MDUs The HomeGrid Forum has entered for Service Providers Because G.hn is expected to signifi- into agreements with several indus- As a next-generation in-home network- cantly exceed the transmission speeds try standards groups, including the ing standard, G.hn presents both a chal- of existing in-home networking wired Digital Living Network Alliance, the lenge and an opportunity to service pro- technologies, it could become indispens- HomePNA Alliance, the Consumer viders. Verizon, for example, has been able to property owners whose older ten- Electronics Powerline Communication mentioned as an early participant in the ants will require greater speed and better Alliance, the Universal Powerline Asso- ITU-T G.hn standards-setting work connectivity for their legacy devices. ciation and the Continental Automated group. But although Verizon may in fact According to Finocchiaro, G.hn is Buildings Association. benefit in the future from G.hn technol- targeted to have a 1 Gbps PHY data ogy, it has invested heavily in the Mul- rate, which will translate into different G.hn Integration timedia over Coax Alliance (MoCA) throughput and coverage rates for coax, Into Products standard for its FiOS installations. For telephone lines and power lines. He an- G.hn technology will almost certainly now, Verizon’s overriding concern in ticipates “a 400 Mbps throughput rate be integrated into many consumer elec- the formation of G.hn specifications is at 99 percent coverage over coax and tronics, service provider and computing backward compatibility and interoper- 250 Mbps throughput with 98 percent products. Mario Finocchiaro, HomeGrid ability with MoCA. coverage over power lines.” Performance Forum secretary and director of business “Verizon agrees that the goal of es- levels between those targets are expected development for Aware Inc., said in a tablishing a home-networking standard for telephone lines. With first-mile net- HomeGrid Forum webinar (“A Service that can operate over any in-home com- work speeds already reaching 1 Gbps in Provider’s Perspective on G.hn,” May munications medium is directionally a few countries, in-home networking 2009), “By virtue of the fact that G.hn transmission speeds like these will soon is designed to network all varieties of the way to go,” said Tushar Saxena, digital media throughout the home, any Verizon’s director of home networking. be necessary. home appliance that sends or receives “However, for any standard to succeed, Because G.hn is designed to coexist digital media, including voice, audio it must address backward compatibility with networking technologies already in files, video and data … is a candidate with technologies such as MoCA that use in home wiring, it will have to look for G.hn.” Televisions, DVD players, AV have achieved wide-scale deployment in like Ethernet to a wide range of devices. components, whole-home audio systems, consumers’ homes. We will continue to This enhanced feature will enable G.hn personal video recorders and gaming con- work toward this larger objective.” to connect readily to older devices. soles such as the Xbox 360 are all likely to AT&T, on the other hand, has con- Initially, legacy devices might be be embedded with G.hn technology. tinued to be a major participant in the connected through an intermediate Finocchiaro added, “Any of the prod- ITU-T G.hn standards-setting process G.hn hub that could cost between $30 ucts that service providers use to deliver triple-play or even quad-play services to Because G.hn’s transmission speeds will exceed their subscribers are ideal candidates for G.hn technology. … These include set- those of legacy technologies, it could become top boxes, residential gateways, broadband home routers and that type of net- indispensable to property owners whose working equipment.” Optical network older tenants require greater speed and better terminals (ONTs) are also potentially important G.hn platforms. connectivity for their legacy devices.

October 2009 | www.broadbandproperties.com | BROADBAND PROPERTIES | 37 MDU REPORT to $50 by the end of 2010. Many new buying compatible consumer electronics however. As Starr commented about consumer electronic devices will have products and hooking them together in AT&T’s preference for putting residen- the G.hn hub built in at an expected an ad hoc fashion is particularly cost- tial gateways inside living units: “Cer- additional manufacturing cost of about attractive. Of course, even today tenants tain landlords sometimes might prefer $2. That way a home entertainment cen- often install their own connections to to put the equipment in the equipment ter, a new TV set or a network storage bypass nonstandard and poorly installed closet and not in the living unit. And drive could become a G.hn hub on the coax cable. But ad hoc networking with that’s the interesting ‘wrinkle’ that will home network. today’s technologies will become more have to be considered.” G.hn standards setters envision difficult for consumers in the future be- G.hn-compliant hubs that link dispa- cause of DRM. Forgoing Structured Wiring rate devices. New G.hn-aware devices G.hn is expected to help make in- and Wireless Solutions will likely be able to do all or most of home connectivity so easy that users Most owners will use straight Ethernet, the configuration work themselves in a themselves will be able do it. Thus, prop- not G.hn, in structured wiring installs. few years. But older existing devices – erty owners may not have to front the But MDU owners planning to install about 85 percent of consumer electron- cost of doing installations if this work structured wiring in new units might ics products in a typical home today – becomes easy enough for new tenants or consider using G.hn instead to wire are not network-aware and will rely on homeowners to do on their own. Starr units for high bandwidth. hubs to connect them. said, “The recurring theme that you will Owners opting to use G.hn technol- Property owners with predominantly be hearing is simple self-installation by ogy could include it inside a structured younger tenants may choose to not add an average consumer. So this is an area wiring cabinet in small as well as in G.hn technology to existing MDU wir- where there is an enormous value avail- large apartments. But to make room for ing because these tenants have newer able. We hope to capitalize on this. This all the cables that could potentially be consumer electronics devices that are al- by itself could be the so-called killer ad- connected, owners will probably want ready Ethernet aware over standard Eth- vantage of G.hn technology.” to make cabinets taller than the custom- ernet cables and Wi-Fi. Newer consumer Starr noted that the security and pri- ary between-the-studs size of 28 to 30 devices with Ethernet ports can easily vacy features of the G.hn standard are inches deep and 14.5 inches wide. The be connected without G.hn through a also particularly important in MDUs, minimum height for a between-the- small computer or even through appli- where tenants often share the same wir- studs structured wiring cabinet may ances such as game stations. ing. Sharing wiring can lead to insecure need to be at least 36 inches. G.hn can transmissions or to the possibility of in- be powered by the same supply that Do-It-Yourself Networking terference over electrical power lines. handles the ONT. For some property owners, letting ten- Implementing G.hn technology in Owners could also forgo structured ants create their own in-unit networks by MDUs may present some challenges, wiring altogether and make the proposed G.hn hub freestanding because new technology, such as NTT’s newly affordable bend-insensitive fiber and the Five Degrees of Improved Home Networking “thin” version of Corning’s fiber, allows

1. Easy fix. Common home-networking problems should be resolvable for a portable network gateway. Verizon

by the customer without outside help or, if necessary, with help from a is already deploying such ONTs in the remote technical support center. United States. The problem, of course, 2. Easy add. Customers with existing service should be able to easily move is that bringing the ONT inside a home customer-premises equipment and add new devices to their home net- does not always meet existing regulatory works by themselves. requirements for telephone industry 3. No new wires. Installation of new service by a technician should never demarcation points. And the network require new inside wiring or reconfiguration of existing wiring. The provider, not the property owner, will equipment should automatically configure itself to use the best avail- own the first-meter wiring if the ONT able wiring. is inside the customer premises. 4. Outside only. A technician should be able to install service, including The FCC has signaled that it has home networking, without entering the home. Once the technician has no interest in specifying demarcation placed equipment outside, customers should be able to install the re- points at the federal level even if the mainder themselves. phone companies want them. (U.S. 5. Complete DIY. Like ADSL-based Internet service today, the customer phone companies have always had flex- performs the complete installation, with no technician dispatch. ibility on a state-by-state basis for determining installations of both outside Source: Tom Starr, AT&T Labs and inside wiring.) This makes G.hn attractive in older structures because it Continued on Page 63

38 | BROADBAND PROPERTIES | www.broadbandproperties.com | October 2009 Biggest and Best… Summit Ever Expanded Multi-Housing Program Get An Agenda Developed by Industry Leaders Connected MDU Co-Chairmen:

Chris Acker Henry Pye Steve Sadler Director, Building Technology Services Group, Vice President, Resident Technology Solutions, Vice President, Ancillary Services, Forest City Enterprises, Inc. RealPage, Inc. Post Apartment Homes, L.P. at the Summ it The 2010 Advisory Panel of Property Owners Includes: Brian McIntire Director of Information Technology – Buckingham Companies Cheryl Barraco Director of Telecommunications – Avalon Bay Communities, Inc Michael Halbrook Ancillary Business Manager – Mid-America Apartment Communities Jeffrey Bond April 26 -28 Vice President, Ancillary Services – Related Jorge de Cardenas Dallas Sr. Vice President Information Technology – American Campus Communities Karen Seemann Director Ancillary Income – Essex Property Trust Kent McDonald Director of Communications Services – AIMCO Mark Bershenyi Director of Contracts – Archstone Smith Michael Burnette Toward a Fiber-Connected World Vice President, IT – Place Properties Robert Bishop Vice President – Riverstone Residential Group Steve Merchant Vice President of Revenue Strategy – Equity Residential Terry Fulbright Vice President, Director of Ancillary Services – UDR, Inc. Woodrow Stone Sr. Director, PMO – Pinnacle Secure your seat today by calling 877-588-1649, or visit our website at www.bbpmag.com Get Connected… At The Summit Biggest and Best… Summit Ever

• Ian Davis – Lawyer, Munsch Hardt Kopf & Harr Due Diligence: Evaluating an Existing Identifying the Value: • Art Hubacher – Lawyer, Costlow & Hubacher Multifamily Community • Matthew Ames – Telecommunications Law, Better, faster, cheaper: How do providers and owners give Miller & Van Eaton residents what they want for a price they want? Multifamily Emerges from Recession • Henry Pye – Vice President, Resident Technology Points of Demarcation: Have the Lines Solutions, RealPage Inc. Multifamily HOT TOPICS on the Agenda Become too Blurry to See? • Kent McDonald – Director of Resident Technology, What does the “point of demarcation,” or “demarc,” really (Confirmed and Invited Speakers as of 10-15-09) AIMCO mean? When is it appropriately applied? Has the demarc • Mike Kolb – Overbuild Specialist, Connexion reached the end of its illustrious life, to be replaced by anoth- Technologies Future of Multifamily Design: ers and residents, but what lies beneath the surface (or be- er all-defining term? Or are owners and providers gearing up What Building Styles, Systems and hind the walls) may not be so pleasant. Although providers for yet another battle that is likely to leave them both weary? Applications will Dominate Tomorrow’s are keenly aware of the cost of delivering their product, • Daniel O’Connell – National Sales Director, The Value Proposition for the Consumer Multifamily Community? owners may not be aware of their own costs and obliga- Verizon Enhanced Communities Owners and providers get together to discuss current and tions in providing their residents with digital choices. This • Mike Olson – DIRECTV near-term service offerings that will provide value to the While it is still not clear when development will begin panel will dive below the pristine surface to explain why • Richard Holtz – CEO, InfiniSys owner’s residents and the provider’s subscribers. How can anew, it is obvious that multifamily development will be some may find deeply buried costs. provider offerings complement those of the owner? far different from the pre-recession status quo. The expert • Steve Sadler – Vice President, Ancillary Services, • Steve Merchant – Vice President of Revenue Strategy, panel will present views regarding the new post-recession What Is the Value in Bulk Services? Post Apartment Homes, L.P. Equity Residential world of multifamily development. Critical to many multifamily verticals, bulk services are • Mark Bershenyi – Director of Contracts, • Lin Atkinson – General Manager, National Accounts, • Henry Pye – Vice President, Resident Technology constantly evolving. Providers and owners will discuss Archstone Smith AT&T Connected Communities Solutions, RealPage, Inc. current, near-term and future bulk services for multifamily • Lin Atkinson – General Manager, • Michael Baer – Regional Sales Manager, Insight • Ron Nickson – Vice President of Building Codes, communities. National Accounts, AT&T Connected Communities National Multi Housing Council • Karla Martin – Senior Manager, Resident • Tammy Gonzales –General Manager Commercial • William (Bill) Revell – Vice President, National Technology Solutions, RealPage Inc. Markets, Bright House MDU Sales and Services Operations, Comcast Cable • Gregory McDonald – Director of • Vin Lipinski – Vice President Business Development, Case Study: Switched Digital Video • Joseph Geroux – Director of Business Telecommunications, Camden Property Trust DirecPath The what, why, when and how of Time Warner Cable’s Development, Charter Communications • Jerry Grasmick – Vice President, Dish Network deployment of Switched Digital Video (SDV). What does it • Eric Fichtner – Executive Vice President, • Nathan Geick – MDU Division Director, mean to property owners, and how will it affect your com- Products and Services, Connexion Technologies Providers Panel: What Do Providers Want From Suddenlink Communications mon areas, such as fitness centers and community rooms? • Robert Grosz – Executive Vice President and Multifamily Owners, Managers and Builders? • Dave Schwehm – Senior Director, National Sales, Regulatory Update General Manager, Pavlov Media Owners have often discussed the issues, both contractual Time Warner Cable Panelists will discuss changes in the regulatory landscape • Ian Davis – Lawyer, Munsch Hardt Kopf & Harr and operational, that affect their properties; now providers and the impacts of these changes (or proposed changes) will have a chance to discuss the multifamily market from Case Study: The Real Value of an Owner’s their perspective. on the multifamily industry. Owner Discussion: Marketing Agreements Marketing Efforts for Providers • Chris Acker – Director, Building Technology Services • Cheryl Barraco – Director of Telecommunications, and Industry Trends What is the value of on-site marketing rights and owner Avalon Bay Communities Inc. Group, Forest City Enterprises Inc. If you are dazed and confused by the latest version of a mar- assistance? Verizon will answer this question by reviewing • Matthew Ames – Telecommunications Law, • Dave Schwehm – Senior Director, National Sales, keting agreement or by the whiz-bang technology a provider a number of FiOS-deployed communities with differing Miller & Van Eaton Time Warner Cable says you can’t live without, this is the session for you. We will degrees of on-site marketing and owner assistance. • James W. MacNaughton, Esq. – Telecommunica- • William (Bill) Revell – Vice President, National MDU explore industry trends in the comfortable and protected con- • Daniel O’Connell – National Sales Director, Verizon tions Specialist, Law office of W.J. MacNaughton fines of an “owner only” setting. No glossy marketing material Sales and Services Operations, Comcast Cable Enhanced Communities or legalese will add to the confusion; we’ll have only honest • Daniel O’Connell – National Sales Director, Verizon 4th Annual Legal Leaders Panel and frank discussion about the impacts on our industry and Enhanced Communities Two Triple-Play Providers Serving Listen to the legal leaders for multifamily and service our residents. This is an excellent forum for smaller owners • Lin Atkinson – General Manager, National Accounts, One Community providers discuss today’s hot issues. Gain valuable insight who may not have the in-house expertise to sort through a AT&T Connected Communities Residents demand choice. Providers are focusing on triple- into the terms and conditions in service and marketing confusing and often costly decision-making process. • Mike Olson – Vice President of Sales, DIRECTV play services and actually appear to want to compete with agreements that are relevant to today’s market. • Steve Sadler – Vice President, Ancillary Services, • Eric Fichtner – Executive Vice President, each other. On the surface, it sounds like paradise for own- • Mary Kane – Senior Counsel, Comcast Post Apartment Homes, L.P. Products and Services, Connexion Technologies

Secure your seat today by calling 877-588-1649, Secure your seat today by calling 877-588-1649, or visit our website at www.bbpmag.com or visit our website at www.bbpmag.com Making the Access NETWORK Network Planning & Implementation Guide

FTTH • WI-FI • IPTV • VOICE • WIRELESS • VIDEO • DATA • FTTH • WI-FI • IPTV • VOICE • WIRELESS • VIDEO • DATA

• Service Provider • MDU • Hospitality

Sponsored by:

1 Overview of North American FTTH Service Provider Service Overview of North American FTTH Michael Render RVA Market Research

Fiber to the Home (FTTH) in North America continues to grow at a dynamic rate – despite difficult economic times. As of April 1, 2009 there were over 15 million homes passed in North America and nearly 4.5 million connected.

The forces of FTTH market growth are diverse. Telephone giant Verizon accounts for roughly two thirds of the growth, but nearly 700 other providers comprise the rest. These other providers range from relatively large telephone companies to small independent telephone companies, municipalities, competitive providers, and new housing developers. Many of the small rural telephone companies have been particularly active in FTTH, including several who are completely replacing their old copper networks.

FTTH now passes 12% and serves nearly 4% of all homes in the United States.

Making the Access NETWORK 2 PLANNING & IMPLEMENTATION GUIDE Overview of North American FTTH Service Provider

To date, most of the FTTH deployment has been in the United When given a choice of five new housing development amenities, States, but growth in Canada, Mexico and the Caribbean is now very high speed Internet from a direct fiber line is perceived to accelerating. be more important than green spaces, 24 hour security patrols, Based on extensive surveys of FTTH and broadband consumers, neighborhood pools and fitness centers satisfaction with FTTH is very high as compared to other types of broadband and television delivery. FTTH gets especially high relative ratings for broadband speed, and the quality of television signal.

The consumer is obviously continuing to embrace FTTH, and continuing future growth is likely.

While much of the FTTH installed to date has been in existing RVA Market research and Consulting LLC is an experienced full neighborhoods, FTTH has been growing dramatically in greenfield service market research firm and is the leading market research new housing developments. FTTH is especially prolific in large firm tracking the Fiber to the Home market in North America. The master planned housing developments – large developments company offers in-depth reports on North American FTTH, and the usually representing over 1,000 homes. It is expected that status of broadband in individual states. In addition, RVA conducts about 35% of the homes built in such developments in 2008 custom market research projects for a wide variety of firms. had FTTH… and over 80% of homes built in brand new master planned communities breaking ground in 2008. FTTH use in www.RVALLC.com smaller subdivisions is also increasing rapidly. 918-592-3100

3 Testing FTTx PONs Service Provider Service

YRT2 delivers the triple-play Service, Service, Service TESTING

FTTx PONs includes a feeder fiber, a 1 x N splitter, and up to N customer fibers. The simplest or ‘Type 1’ FTTx PON (Figure 1) is Fiber to the home or business (FTTx) access networks deliver fusion-spliced from end-to-end, and provides just two voice, video, and broadband Internet services directly to the connectorized test points, one at the OLT and the other at subscriber premise. Most commonly they are point-to-multipoint the ONT end of the network. In Type 1 networks one fiber is passive optical networks or PONs, which allow multiple dedicated and installed to each dwelling or business unit, subscribers to share the same feeder fiber to reduce network whether or not the resident is currently a subscriber. construction costs. Current generation FTTx GPON networks can span cable distances of up to 20 km (12 miles) and operate at an aggregate bit rate of up to 2 Gb/s. At a typical splitter ratio of 1 x 32, an FTTx PON can provide each subscriber a broadband service rate of over 30 Mb/s.

While these bit rate and distance capabilities are dramatic improvements over traditional access technologies such as POTS, Figure 1: Type 1 FTTx PON (fusion-spliced from end-to-end) DSL, and cable TV, they are still modest in comparison to the bit rates and span lengths found in core (long-distance) fiber optic Type 2 FTTx PON (Figure 2) replace the fusion-spliced splitter with networks. As a result, fewer measurements are required to certify a connectorized splitter module, which is installed in a FTTx PONs than core fiber optic networks, as shown in Table 1. weather-proof cabinet. One benefit of using a connectorized splitter is that splitter modules can be added only when needed FTTx PONS CORE NETWORkS (when enough customers have subscribed). The second benefit is Insertion Loss yes yes that a new test point is added at the splitter cabinet (TP3). Optical Return Loss (ORL) yes yes Connection/spice loss and yes yes reflectance Length useful useful Polarization Mode Dispersion no need yes (PMD) Chromatic Dispersion (CD) no need yes Table 1: Certification requirements of FTTx PONs and Figure 2: Type 2 FTTx PON (has connectorized splitter module) core fiber networks

Moreover, certification of FTTx PONs never requires cross-talk, A Type 3 FTTx PON (Figure 3) adds an aerial or buried noise, and tests required to certify copper access networks. So weather-proof, Drop Cable Terminal near subscriber locations. it is likely that technicians familiar with testing traditional UTP or This allows the FTTx service installer to connect service to a given coax-based access networks, or fibers in the core network, will customer using a connectorized drop cable. It also adds another find that certifying and trouble-shooting FTTx PONs to be relatively test point (TP4). straight-forward. However, they still will need to have a basic understanding of how PONs work and learn a few new testing strategies to be able to test FTTx PONs efficiently. YRT2 delivers the triple-play Service, Service, Service Three Popular FTTx PON Architectures Every FTTx PON connects a ‘head-end’ device called the Optical Line Terminal or OLT with multiple customer-end devices called Figure 3: Type 3 FTTx PON (connectorized splitter module and Optical Network Terminals or ONTs. In addition, every FTTx PON drop cable terminal)

Making the Access NETWORK 4 PLANNING & IMPLEMENTATION GUIDE Testing FTTx PONs

Each of these popular PON architectures dictates a different An example trace is shown in Figure 6. Note that drops represent testing or certification strategy. However before we discuss these, event insertion loss, for example the loss of a connection, splitter, a few ‘tools of the trade’ need to be introduced. or splice, while ‘spikes’ represent event reflection. YRT2 delivers the triple-play Service, Service, Service Certification Test Sets – OLTS and OTDR Two types of test sets are used to certify optical fibers in core

or FTTx networks: the optical loss test set or OLTS and optical Service Provider time-domain reflectometer or OTDR. OLTS units are normally used in pairs, with each unit containing an optical power meter (OPM) and stabilized light source (LS). The two units may be identical or one may be a lower function ‘remote’ unit and the other a full function ‘main’ unit. Automatic optical loss test sets used to certify FTTx PONs typically contain three lasers: 1310, 1490, and 1550 nm, allowing a pair of OLTS units to measure the downstream and upstream loss of an FTTx PON with the press of a single button. Figure 6: OTDR Trace for network shown in Figure 5 Measuring loss separately two directions is called bi-directional loss measurement. A typical OLTS application in Type 2 and 3 FTTx PON networks is to measure bi-directional loss from TP1 OTDRs can analyze a trace to calculate end-to-end loss, ORL, (central office) to TP3 (splitter pigtails) as each splitter module is the loss and reflectance of each event, and the loss slope of fiber installed (Figure 4.) sections. The capabilities of the OTDR and OLTS are compared in Table 2:

OTDR OLTS Insertion Loss Average of upstream Bi-directional loss (each and downstream loss direction is measured (which in FTTx PONs separately) are normally equal to within a few tenths of a dB) Optical Return Loss (ORL) Can be estimated Direct measurement Figure 4: OLTS pair measuring bi-directional loss of a PON feeder from trace fiber and splitter. Connection/spice loss and yes no reflectance While optical loss test sets measure end-to-end loss using a Length yes yes (more or less) continuous light or CW signal, an OTDR measures loss as a function of distance by transmitting pulses of light Table 2 OTDR and OLTS capabilities

YRT2 delivers the triple-play and measuring the light reflected by the network under test as Service, Service, Service a function of time. This allows OTDRs to measure the loss of Conclusion individual connections, splices, splitters, and unexpected ‘events’ The two most important FTTx PON certification measurements such as fiber bends. The disadvantage of OTDRs is that they are end-to-end insertion loss and ORL, both of which can be cannot measure bi-directional loss. Instead they measure round- done with an OTDR or OLTS. However, an OLTS must be used if trip loss and divide by two, which is the average loss of both bi-directional loss measurements are required, and only an OTDR directions. A typical OTDR application is to measure the end-to- can locate bad splices, connections, or other faults. FTTx PON end and event loss of a Type 1 network from the customer end certification is normally done on an end-to-end basis on Type 1 (TP5), using launch and receive test cords so it can see the loss of the ONT and OLT connector (Figure 5). networks and in stages on Type 2 and Type 3 networks.

YRT2 delivers the triple-play Service, Service, Service

Figure 5: OTDR used to measure event and end-to-end loss of a Type 1 PON from the customer location (TP5)

5 TOUGH Fusion Splicers Service Provider Service Tough Fusion splicers For a rough FTTX environmenT

By the late 1980’s fusion splicing had become fully automated by use of CCD camera-based optical systems that provided precise observation of fiber alignment and control of the splicing process. A single-fiber splicer using such an observation capability with the Profile Alignment System (PAS) core recognition algorithm could provide core alignment to sub-micron accuracy. This provided extremely low splice loss in a user-friendly automated splicer. Applying essentially the same optical system to a mass fusion splicer allowed high-productivity splicing of 12-fber ribbons.

These camera-based optical observation systems allowed development of software protocols in these fusion splicers to not only automate splicing, but to provide the operator with important quality detection capability, diagnostics, and error messages. For example, fiber alignment (or core alignment in the case of the single-fiber splicer) could be used to prevent bad splices and provide an estimated splice loss. Bad cleaves were similarly detected. A diagnostic Arc Test (which utilized the camera system reliability of a fusion splice in a more portable splicer. In capability to measure the melt-back amount of non-spliced response, the technology of the day allowed the introduction of fibers) could be used by the operator to check and calibrate unsophisticated mini-splicers. These splicers utilized a simple the heat output of the electrodes and thereby maintain good fixed V-groove to provide passive alignment of the fiber cladding, operating performance. These developments revolutionized fiber and they dispensed with the CCD cameras and automation in deployment by changing it from an extremely skill-dependant order to allow creation of small cost-effective machines. As exercise, and also greatly improving the quality of the result. time progressed, it was possible to develop a new generation of mini-splicer that did utilize the cameras to once again provide an While user-friendly, these splicers were quite large and heavy, automated system with embedded quality checks. typically between 20 and 30 pounds. That weight did not include a battery, which, with the battery technology of the day Over the years these mini-splicers improved with subsequent (and the power consumption of the splicer) would add very further miniaturization and better features. By 2000, even PAS significant additional weight. Due to the size and weight and also core-alignment and 12-fiber mass fusion capability was available complexity, these fusion splicers were usually relegated to rather in such a mini platform. By this time the splicers had been refined benign splicing environments such as use in a central office, or for field use to incorporate a wind protector that could ensure a splicing vans and trailers. For more remote locations, mechanical stable arc even in the presence of a 30mph wind, and the LCD splicing continued to be employed. video monitors were also improved to ensure easy viewing in direct sunlight. A slide-in battery pack could be substituted In the early 1990’s broadband trials and deployments began for the AC adapter to provide a significant remote-site splicing to make an impact. It was desirable to provide the long-term

Making the Access NETWORK 6 PLANNING & IMPLEMENTATION GUIDE TOUGH Fusion Splicers

capability in a highly portable 6-7lb field-portable splicer. This set the stage for the massive surge of broadband FTTH/FTTX activity 60% in recent years. 50% During these recent FTTX deployments, use of the fusion splicer 40% in remote-site harsh environments became the norm. Fusion 30% Service Provider splicers were increasingly subjected to harsh weather such as exposure to rain and dust. Furthermore, the nature of the FTTX 20% deployments mandated frequent shifts from one site to another 10% (often several times in a single day) and use for aerial cable deployments. This sometimes resulted in a splicer being dropped 0% during setup or transportation to the next splicing location. Drop Dust Water Other Examination of repair and service data showed a need to try to improve the robustness of the fusion splicing platform. A Pareto analysis revealed that the primary field-induced failures were the Misalignment result of the splicer being subjected to a drop or impact. Dust and water exposure have also been significant causes of splicer For a fusion splicer, the engineering challenge is much greater. downtime (and the need to return the splicer to the factory for One challenge is to maintain the integrity of the V-groove service). alignment system and to maintain alignment of the fiber clamping system to the V-grooves. This is difficult because the clamps Ruggedized field-portable fiber-optic test equipment had become must move relative to the V-grooves to drive the fibers together industry-standard for some time. A typical hand-held power during the splicing process. Also, the optical system must be meter or light source uses a rigid structure encased in a soft protected from shock and impact, and it must remain in precise rubber “boot” to prevent damage in the case of the unit being alignment to the V-grooves in order to properly observe the fusion dropped. Such test equipment is usually undamaged after a process. 30-inch drop. If we consider a power meter for example, the internal structure consists of a circuit board, a battery, and a very It is important to note that in the case of a fusion splicer, a drop or small photo-detector. If the structure is sufficiently strong, the impact may result in the catastrophic mechanical failure of some internal components will survive a drop, and it is not too difficult part. But a “soft-kill” will result even when nothing is broken if to maintain the alignment of the photo-detector with the the precise alignment of important components is not maintained. connector port. Because of the mechanical complexity of the fusion splicer, and the need for precise alignment of the components, until very recently no manufacturer was able to offer a family of fusion splicer capable of meeting the 30-inch drop test objective of Telcordia GR-765-CORE.

Meeting the Telcordia 30-inch drop test objective and also providing greater robustness for exposure to rain and blowing dust were established as design goals for a new generation of fusion splicers. To meet these goals, a complete component-by-component level design approach was required.

7 TOUGH Fusion Splicers Service Provider Service

Two external parts of the splicer required special attention. In the case of the LCD monitor, it can be encased in a protective case and provided with an impact resistant hinge. However the viewing surface itself needs special protection from impact. This is provided with a transparent shield to protect the LCD while maintaining easy viewing in direct sunlight.

Adding rubber bumpers to the exterior corners and edges of the fusion splicer is important and reduces the impact force by half. While helpful, this is not sufficient to ensure survival of the splicer. Similarly, simply increasing the mechanical rigidity and strength of all components is also not a complete solution because the overall weight of the splicer would be increased and field-portability would suffer.

A component-by-component analysis reveals which items should Another part that required consideration was the splicer carrying be more rigid and strong, and in some cases, which items require handle. Typical carrying handles for fusion splicers have been a drastic decrease in weight. Improving robustness and strength rigid hinged types. During a drop, not only can such handles be of external parts is generally the correct approach, but in the case damaged, but their rigid handle structure can transmit shock to of internal components, reducing weight may be more important. the splicer body and internal components. A resilient nylon strap provides a better solution. An example is the camera system for the PAS core-alignment splicer. The optical system for this splicer must utilize precise Similar careful analysis has been carried out throughout every focus motion so the camera can provide sub-micron core component and subassembly of the new generation fusion observation. The standard practice had been to motorize the splicers. As a result, a family of splicers has been introduced motion of both the 2 perpendicular X/Y observation axes cameras that are resistant to drops and impacts, and significant exposure and also their related lenses. By fixing the position of the lenses to dust and rain. These toughened fusion splicers are therefore and motorizing the movement of only the cameras, it was possible designed to meet the challenges of the FTTX environment and to reduce the movable mass by 70%. This greatly simplified the stay out in the field in tough broadband deployments. task of ensuring maintenance of proper optical alignment after an impact. AFLtele.com/go/Rugged

Making the Access NETWORK 8 PLANNING & IMPLEMENTATION GUIDE Making Your Marc Making

Your Service Provider

Demarc...ation that is. The box on the side of the house connections to the home and quality of those connections doesn’t get much press, but plays a significant role in becomes critical. For example: VDSL2 requires copper providing connectivity for phone, video, and data services. connections that are clean, clear of corrosion, grounded, and Created by telcos in the 80’s by FCC mandate, the demarc protected from the environment. FTTH optical components provides the point at which the service provider hands off need to be kept clean, out of the weather, and secure. Coax service to the home owner. connections and splitters need to be protected from corrosion and grounded. So, with higher bandwidth services provisioned Home owners today spend over one hundred dollars each at the home, the look, longevity, strength, and functionality month for phone, video, and data services and the box on the of the demarc are as much important to providing quality of side of the house should reflect the cost of services being service as any other part of the system. provided. So, aesthetics are important, but so is functionality. There are many functional reasons the service provider wants Today’s high strength polymer alloys with UV inhibitors provide to have a demarc too. The demarc delineates responsibility for exceptional weathering with little to no fading in tough of service and home wiring, it provides single point for climates with excellent resistance to impact in cold weather or terminating cables run throughout the home, it provides a warping from high heat. The demarc is last piece of the OSP secure point of entry for services, and it provides shelter to hardware used to provide telecommunication services and various connectivity components from the environment. should be just as robust and well engineered as any other part As service operators provide more and more bandwidth, the of the system.

9 Room to Grow Service Provider Service Room to Grow The people who run independent operating companies (IOCs) don’t The company uses fiber to link that switch with Tellabs® 1000 pretend to know what’s coming down the pipe, but they do know their Multiservice Access Platforms (MSAPs) in the towns of Holland, Garvin, pipes had better be big enough to handle it. That’s why Woodstock Russell and Woodstock. Copper loops from those broadband digital Telephone Company in southwestern Minnesota is upgrading its loop carriers (DLCs) deliver DSL service to users. network to a fiber-to-the-premises (FTTP) infrastructure now. Wanted: A Future-Proof Access Platform With an operating territory that covers about 450 square miles, Woodstock provides voice and Internet services to five communities, When it came to selecting an access platform for the Woodstock FTTH which include many users in rural areas. Most of Woodstock’s network, Knuth and his team wanted a vendor that could offer two customers have had DSL access for years. But a few years ago, their things: the research-and-development capabilities to keep pushing appetite for bandwidth began to outstrip the telco’s ability to satisfy it. the technology and the commitment to providing long-term support for its existing products. Although Woodstock can deliver sufficient bandwidth, via 2,000-foot copper loops, for its business users within its five towns, it struggles to “We’ve got five or six companies from which we can buy access serve its more rural subscribers. “We have an awful lot of farmers out equipment today, but will they keep up?” says Knuth. “That’s what I here who are pretty large businesses, and they use that Internet like worry about.” you can’t believe,” says Woodstock owner and President Ken Knuth. He also sought a vendor that can help protect Woodstock’s existing “That’s where we’re really getting hammered.” network investments. That means, Knuth says, a vendor he can go

to 10 years from now “and see that the equipment I buy [then] might Many of those customers want even more bandwidth than Woodstock work with the equipment I have today.” can provide with fiber to the curb, or “fiber to the fence,” as Knuth puts it, and DSL running over 12,000-foot to 15,000-foot loops. Woodstock Those two criteria prompted Knuth to choose the Tellabs® 1150 has put in a great deal of fiber to the curb, “but it was a stop-gap thing MSAP with its line module for a GPON FTTH solution. In addition to at best,” Knuth says. “We could have put the fiber a little deeper into the fact that Tellabs “has more fiber-to-the-prem equipment out there the network, so we’d have shorter loops, but we’re talking about three than anybody,” he says that when it comes to evolving the platform’s customers per mile. Pretty soon, you get tired of doing this. It’s just functions and features, “we expect Tellabs to develop those.” patch, patch, patch, and we weren’t keeping up.” Knuth points out that he based his decision in part on Woodstock’s Concluding that it made no sense to continue spending money on long track record with Tellabs, notably the Tellabs® 1000 MSAP series technology that ultimately couldn’t deliver what users wanted, Knuth of broadband DLCs. “We stuck with the Tellabs platform all the way decided to upgrade the entire Woodstock network to FTTH. Last year through, and we’ve been putting equipment in pretty much every the company began driving fiber all the way to the users’ premises. year,” Knuth explains. Knuth vowed, “We intend to be out of the copper business in just over two years.” Knuth cites as another persuasive factor the Tellabs 1150 MSAP’s non- blocking architecture, with its 720-Gbps backplane, 44 Gbps to every A Network for Voice, Internet and Video multi-service card slot and 10-Gigabit Ethernet uplink capabilities. Although Woodstock’s evolving FTTH infrastructure will deliver the voice “We have to get more bandwidth into our office about every other and Internet services that customers want, Knuth’s basic strategy is year. We’re talking about 100 Mbps to a customer, multiplied by 1,100 to position the company to provide future “pull TV” services--IPTV and subscribers. Now we’re talking about 10 Gbps and multiple 10-gig video on demand. ports on a Tellabs 1150 platform. You’ve got to keep up with the service,” Knuth says, “or you’ll lose out.” Noting that several groups of Minnesota telephone companies have banded together to construct digital headends, Knuth says Woodstock The GPON application appealed to Knuth because it is state of the may tie into one of those next year. Because of his belief that pull art. “Remember, we’re TV will replace push TV, and because of the fact that Internet traffic putting in a system to increases by about 43 percent each year, Woodstock had little choice last for 25 years. Why but to put an FTTH network in place. “If we’re going to be ready for pull put in one that’s going TV, we need a big pipe,” he says. to carry a meg or two? When we have pull TV First, a Snapshot of the “Old” Network and stuff like that, 2 megs, 3 megs, 5 megs Anchoring the five-exchange network is a softswitch that Woodstock is just not going to do installed last year. Serving all five exchanges, the switch was it. So why not get all Woodstock’s first major step in upgrading the network to FTTH. we can?” Tellabs 1150 Multi-Service Access Platform in the Woodstock article.

Making the Access NETWORK 10 PLANNING & IMPLEMENTATION GUIDE MDU Stimulus Plan MDU Stimulus Plan with

In a multi-dwelling unit property or master planned community, one of the most challenging, but potentially most rewarding tasks is dealing with the technology-based amenities. If you’ve been involved with MDUs as either a property owner or service provider, you know that these have been challenging times. The MDU vacancy rate is at the highest level since 1987. In addition, additional capacity in the form of units continues to increase, roughly 22,000 units during the most recently completed quarter.

What this means is that the MDU world is in a situation where too many properties are competing for too few tenants. Across the country, although some areas have clearly been affected more deeply than others, cities and suburbs have roughly felt similar pain.

Foreclosed single family homes are now for rent at significantly lower prices than 1-2 years ago. Condos that aren’t selling are Note that 3 of the top 4 amenities are technology-based services. MDU now renting. People are doubling up more often, renting with roommates, or even moving back home. On top of the factors that The bottom line is that the amenities which were attractive 10 are increasing vacancies from the previous slide, typically a sure- years ago are now being supplanted by a much more technology- fire way to increase occupancy is to decrease rents. savvy consumer. Where 20 years ago the nation’s cellphone network was just only forming, today it serves as the primary Obviously, the problem with declining rents is that they further means of contact for a growing number of subscribers. Landline contribute to declining property values, and for those companies telephone service continues to erode quarter-by-quarter, being that are public, declining stock prices. When faced with the replaced by cellphones. In addition, high speed Internet services prospect of declining prices, many industries try to add additional and accompanying social networking tools such as Facebook and value to the package provided in order to try to offset price Twitter are vital, especially to the telecommuter. Finally, greater erosion. than 35% of the population already owns an HD-capable TV, and with the change to digital TV, it’s virtually impossible to find an Technology amenities can serve as an incentive to keep a analog TV set on the primary market. customer, or persuade a customer to come to your property. All of these factors are reasons that the savvy property owner Changes in Customer Tastes and Needs needs to look at infrastructure in a different light. Whereas a In the past, the first place a a property manager would look clubhouse and pool may have been indispensible amenities a would be to spruce up traditional parts of the property, such as generation ago, the communications infrastructure must now have landscaping and paint, resurface the pool or spruce up common a higher profile. It is not unusual now for a moving decision not to areas. Although keeping up appearances is always a good idea, be made based upon the carpet color, but on whether true HD TV in many cases, these items may not give much bang for the buck. services can be provided over the property’s wiring, or whether Amenities like the gym and pool are not used by all residents, Internet services are sufficient for the telecommuter to utilize the and there is lower hanging fruit in the form of technology that can corporate network at home. provide a very effective differentiation between one property and its competitor. A study was recently completed by the National On top of the trends just highlighted, 86% of the US purchases Multifamily Housing Council that provided some very insightful a pay TV service, and 75% purchase broadband services. This information (information provided by the IMCC). means that, contrary to a swimming pool, the vast majority of the residents of a property use these services on a daily basis. The 4 top amenities were: All TV services, including all HD channels, are now digital. The • Cell phone coverage (Telecom service) days of a 30 channel analog headend providing a basic channel • High speed Internet (Telecom service) package are rapidly growing to a close, and those operators who • HD video (Telecom service) only provide that option will find that their customers will just • In-unit washer-dryer replace them, either with another provider, or by the Internet.

11 MDU Stimulus Plan

With any home, the linchpin of the entertainment system has There’s an extensive video on demand library, and finally DIRECTV been, and will continue to be, the TV. The computer will continue has a ton of international programming to satisfy a wide variety of to complement the TV, and the services will continue to converge, user tastes. but in the home, the TV will continue to be the primary delivery screen. Indirect and Direct Property Stimulus Adding DIRECTV as an amenity can help to stimulate the bottom With so many people how purchasing HD-capable TVs, many line directly. For example, a typical voice, data, and video people are making the decision not to move to a location where package, purchased separately, can easily cost a subscriber $120 HD services are not available. dollars or more per month.

Likewise, people want freedom about how they interact with their When purchased in bulk, the cost of those services are various devices. DIRECTV’s DVR scheduler feature allows your approximately $45.00. $120 minus $45 leaves a margin of tenant to be able to remotely program their DVR and watch then approximately $75.00/subscriber/month, which can be used to watch the content whenever they’re ready. pay for the infrastucture and support costs, as shown in figure 1. Clearly, in the near-term, buildings that don’t provide high quality technology amenities will soon be obsolete. Obsolescence will lead to lower rents/values. MDU Technologies exist today that allow virtually every property owner to provide very competitive and high quality technology amenities. 5 years ago, this technology wasn’t available, but its now, and we’ll mention the technology later in this article.

At the time that a property needs a reliable partner, the incumbent carriers are doing precisely the things that have not endeared them to their customer base. Property owners often face spiraling cable bills, even while the service offerings continue to lag companies like DIRECTV. The bills are sometimes Figure 1: Triple Play Services indecipherable.

DIRECTV is the Answer In addiiton, DIRECTV offers 3 different types of commissions, DIRECTV is now the nation’s largest pay TV company. DIRECTV, including a large up-front “pre-paid” commission and two as the linchpin of a technology amenities package, provides an commissions paid on a monthly basis. unbeatable package including fantastic video quality, more HD channels, and more exclusive sports packages than any other Indirectly, having the service can be used to offset rent decreases. provider. When purchased in bulk, DIRECTV digital service can be offered DIRECTV is well known as the exclusive provider for NFL Sunday at a cost of as low as $9.99/month. Providing the bulk service Ticket, and recently announced exclusive rights for NFL Sunday as an amenity can be bundled into the monthly rent, consumers Ticket until 2014. Other sports package include Major League can see that the package provides significant value to offset Baseball, college football and basketball packages, NHL Hockey rent decreases. Given that the vast majority of the population Center Ice, Nascar Hot Pass and other subscription packages. has a pay TV or internet service, most customers can Scoreguide, provides you with a real-time look at all of your appreciate the value that’s bundled for them. favorite scores at the push of a button. DIRECTV provides exclusive programming around golf and Tennis major tournaments with multiple channels during the early action.

On the interactive side, there’s a game lounge, where users compete against other people in dozens of games. In addition, DIRECTV is building the next generation of interactive services, featuring an App Store similar in concept to the App Stores run by Apple and BlackBerry for their interactive phones.

Making the Access NETWORK 12 PLANNING & IMPLEMENTATION GUIDE MDU Stimulus Plan

Finally, keeping the technology infrastructure up to date is now as or more important than building that new clubhouse or landscaping package. There’s a clear consensus emerging in the real estate appraisal community that the value of the technology infrastructure has a direct relationship on the value of the property. This value will only grow as the impact of the services carried over the network continues to grow. How do we start? DIRECTV has two different business models. These are how the subscription packages are presented to the property.

First, Direct-to-home is a model where there is a direct billing relationship is between DIRECTV and the customer. The The next bulk business model is called “Digital Bulk”, and it service is delivered over the property wiring, and the pricing is delivers the entire DIRECTV experience, including program guide standard retail pricing. This business models is useful when the and options for pay-per-view, HD, DVRs, the Scoreguide service, subscription rate is not 100%. interactive games, etc. The second type of business model is known as bulk. In this In addition to the base subscription packages, premium channels case, it’s basically what it sounds like. The service is bought in such as HBO, Showtime and premium services such as HD and MDU bulk and sold in bulk. Bulk service is typically, but not always, DVR services can be purchased in bulk and provided to the built in the Homeowner dues or fees, or monthly rent. In this resident at a substantial discount to retail. model, instead of retail pricing, pricing is substantially below the retail price of the service. The system operator or property owner Finally, a la carte upgrades for all of these packages are available can then bundle the billing with voice, data, or security services to for each of these services. The system operator or property gets provide a complete amenity package. For bulk service, however, a bill for the basic service, and the customer gets a bill reflecting the business model and pricing is such that the property needs to any lease fee charges for settop boxes, pay-per-view, or any a la commit to a 100% subscription rate for the property. carte services. Within the Direct-to-home business model, the pricing schemes are simple. It’s basically retail DIRECTV service. Technology Delivery DIRECTV needed to develop its own technology to deliver all of However, with bulk service, there are several options. the content that it offers, since a typical cable TV network cannot support all of the content. First, there’s “SMATV”, which is an acronym for “Single-Master- Antenna TV” service. This is what is often seen in a hotel. The MFH2 (MFH stands for Multi-family Housing) delivers DIRECTV system typically has a small, defined set of channels, and delivers services with in an MDU over the existing coax network. It is no-frills TV without the complete DIRECTV experience. The next the most common delivery method, and is an excellent choice step up is “Analog bulk”, which is a defined set of channels. Both where the property is pre-wired for coaxial cable. MFH2 uses an of these services are delivered over a master headend, shown in advanced version of the “RF technology” that has been around figure 2. for years, but allows the operator to bring unprecendented choice of content to the end user. A sample component from an MFH2 The service is then delivered over coaxial cable, and doesn’t system is shown in figure 3. require a settop box to see the channels. DIRECTV has also developed a technology platform to deliver the These business models next generation of services. are typically applicable It’s called MFH3, and uses IP for student housing, technology, the same protocol apartment housing that’s used to deliver Internet- or retirement homes, based services and voice over places where the IP. Although MFH3 can be customers may want delivered over coaxial cable, a no-frills, low-cost it’s most commonly deployed package, without the over twisted pair copper over options for HD, DVRs, DSL lines, or through 100 etc. Figure 2: Analog Bulk Figure 3: MFH2 Component

13 MDU Stimulus Plan

megabit per second Cat 5 or 6 copper or fiber optic pipes. The Living in the Real World MFH3 headend is shown in figure 4. Now, let’s take a look at a real-world example using real-life numbers. In this situation, a master planned community was faced with an incumbent providing substandard service. There were limited HD options, poor and variable Internet service, and most frustrating of all, unstable pricing. Residents had a really hard time understanding their bills. The incumbent had no desire to upgrade the infrastructure, and so the homeowner’s association evaluated multiple options, including the existing incumbent carriers for both cable and telco service, and competitive satellite providers. The services offered included voice, video, and data, with video and data provided on a bulk basis to all subscribers and voice assuming roughly a 30% take rate.

There were approximately 500 users in the community, and in Figure 4: MFH3 Headend this scenario, the operator evaluated DIRECTV’s MFH3 platform deployed over a new fiber optic infrastructure, which is typically MFH3 delivers the complete DIRECTV experience, and enables seen as the most expensive, but most future-proof deployment the system operator or property owner to deliver today’s and

MDU option. tomorrow’s services, including triple or quad play services. In addition, this system allows the insertion of locally generated Below are the are the unretouched customers numbers. content into the program guide. Through DIRECTV’s partnership with Technicolor and Thomson, this system provides real-time service monitoring, so you’ll know if there’s a problem without your customers needing to phone it in, enabling you to provide a much higher level of service. See the figure below for a summary of the various business model and technology choices discussed.

The blue bars highlight the savings by going with DIRECTV on a year-by-year basis, and the two bars highlight the cumulative amount of savings with two different scenarios. The main message here is that even with the most expensive DIRECTV platform, this operator found that a massive amount of savings, plus better service, would be available by going with DIRECTV.

The typical choice for apartment buildings and student housing Summary with coax networks is either SMATV or analog bulk service. MFH2 is also deployed in apartment buildings over coax, and The main messages to remember are the following: MFH2 is also used in condos delivering digital bulk service. 1) Consumers’ tastes are changing. What used to work may not work now, but technology amenitites are clearly the wave of the Finally, MFH3 is typically deployed in apartment, condos, or future and can help offset rent or price decreases. master planned communities over twisted pair, Cat5/6, or optical 2) There’s no better technology amenity than DIRECTV, and fiber. MFH3 delivers digital bulk service. DIRECTV has a wide variety of business models and technologies for a wide variety of MDU properties 3) Finally, adding DIRECTV to your property can add value to the property, and potentially decrease costs. For More Information

AFLtele.com/go/DIRECTV

Making the NET-WORK 14 PLANNING & IMPLEMENTATION GUIDE DC Circuit Upholds DC Circuit Upholds FCC Order Banning Cable Providers’ MDU Exclusivity By Gary Resnick, Board of Directors, Independent Multi-Family Communications Council (“IMCC”) and Shareholder, Gray Robinson, PA

In October 2007, the Federal Communications Commission FCC Order upheld by the DC Circuit alters the traditional exclusive (“FCC”) issued an Order providing that cable companies could access agreement entered into by cable providers. The decision not enforce current exclusive-access provisions or enter into new also opens up thousands of MDU units to video competitors such exclusive provisions in agreements to provide cable services including incumbent local exchange carriers, such as Verizon, in multiple dwelling unit properties (“MDUs”). In other words, the ATT, Qwest, etc., and PCOs. The FCC Order upheld by the DC 2007 FCC Order barred franchised cable providers from entering Circuit, however, has limits and does not prohibit all video service into new agreements that provide that they shall be the exclusive providers from exclusive arrangements or apply to other types of

video provider in MDUs and from enforcing such provisions in arrangements that may be entered. MDU existing agreements. The cable industry as well as several real estate entities appealed the FCC Order. They argued particularly First, the FCC’s ban on MDU exclusive agreements applies only to that the retroactive effect of the FCC’s Order to apply to existing franchised cable operators. By its own terms, it does not apply agreements was beyond the FCC’s authority. to PCOs or other service providers that do not use the rights of ways. The FCC Order has created opportunities for PCOs that On May 26, 2009, however, the U.S. Circuit Court of Appeals for previously did not have access to certain MDUs. In fact, many the D.C. Circuit (“DC Circuit”) upheld the FCC’s Order. The DC of us considered how various providers and property owners Circuit determined that the FCC’s Order to ban exclusivity could would have reacted if the DC Circuit reversed the FCC Order as to apply not only to future agreements but also to existing contracts existing agreements and reinstated exclusive cable agreements. with MDUs. The decision alters years of practice of the cable However, we do not have to unravel years of activity since the FCC industry and provides significant benefits to cable competitors Order. While the FCC Order does not apply to PCOs, PCOs should by opening up thousands of MDUs to potential competition. The be cautious about relying upon their ability to have exclusive DC Circuit did not address other types of agreements with cable access or to be the exclusive service provider in MDUs. The FCC providers, such as bulk contracts and marketing agreements and has an open proceeding to consider extending its 2007 Order also did not address exclusive agreements by providers that do not use public rights of ways, including private cable operators (“PCOs”).

The cable industry as well as several real estate organizations had a history of entering into such exclusive right of entry agreements, exclusive easements and other such arrangements providing that a particular cable company would be the exclusive provider of video services in the particular MDU. Under such exclusive agreements, the cable provider would generally bear the costs of constructing and installing its system to provide services, and would often provide consideration to the MDU owner, knowing that it would obtain a return on its investment from unit owners and residents who did not have a choice in service providers. The

15 DC Circuit Upholds

to other video service providers that do not use public rights of Video and broadband, in particular, have been characterized as ways. While there are three new FCC Commissioners (including industries where regulation did not keep up with practices and a new Chairman) who were not on the Commission for the 2007 technology. While the FCC’s 2007 Order and DC Circuit decision Order, Commissioner Michael Copps (who remains one of the five impose new regulations, the industries are already considering Commissioners) expressed his desire to prohibit similar service alternatives. With the ban on exclusive service and access providers from entering into exclusive agreements. Thus, the arrangements, other creative arrangements with MDUs continue ability of PCOs to enter into exclusive service or exclusive access to emerge. For example, more creative forms of easements, agreements with MDUs may be temporary. ownership of infrastructure and structuring corporate relationships are all being used to attempt to obtain advantages in MDU Second, the 2007 FCC Order and DC Circuit decision do not environments. impact bulk agreements, exclusive marketing agreements, and other arrangements with MDUs that do not restrict access. Bulk The IMCC submitted comments in the FCC’s open proceeding contracts provide that a service provider will bill the MDU owner addressing the issues of extending the 2007 Order. IMCC or manager for certain services that it provides to all – or nearly members also met with FCC Commissioners and staff to discuss MDU all – units at a discounted rate. Such bulk contracts are common its position on these issues. With three new Commissioners and particularly in states that have cable mandatory access laws, many new staff at the FCC, however, it remains important for the since exclusive access agreements are not effective to prohibit IMCC to remain engaged and for those impacted by FCC decisions cable access in MDUs. Bulk contracts do not restrict access, and to communicate about their businesses and services with the FCC.

IMCC is a non-profit organization created to support the rights of independent communication service providers and their business models by being the only voice representing them in front of the FCC. IMCC is a clearinghouse of information, and is the only place a PCO can go to find out what is happening in the industry regarding regulatory issues. The mission of the Independent Multi-Family Communications Council is to bring together broadband service providers, technology suppliers and multifamily dwelling unit owners to pursue mutually productive goals which benefit residents. Membership is open to system operators and companies within the telecommunications industry as well as MDU owners. It is only through member support and payment of dues that IMCC continues to lobby on behalf of the industry, ensuring its success both now and in the future. thus are not prohibited by the 2007 Order. Similarly, exclusive marketing agreements provide that the MDU owner will only For more information on becoming a valued member, market a certain provider’s services, but do not restrict access to please contact Executive Assistant, Valerie Sargent, at other providers. These issues, as well, will be addressed in the [email protected] or (949) 274-3434. FCC’s open proceeding to consider extending the 2007 Order. Yet for now, there is nothing restricting cable and other video service Feel free to visit our website providers from entering into such arrangements. It is generally imcc-online.org felt that the FCC will leave intact the ability to enter into bulk and marketing agreements, and thus, that these become increasingly for more information. important in a more competitive environment.

Making the Access NETWORK 16 PLANNING & IMPLEMENTATION GUIDE Harborside Harborside IP-based Triple Play

When many people think of Florida, they often think of sun and core switch feeds distribution switches by a fiber optic connection sand, the ocean and retirement. However, there’s one community between buildings. Each distribution switch is then connected to in Naples, Florida that is looking forward to the future. For years, each resident’s apartment by fiber, with a 100 Mb/sec connection the Venetian Cove Club, La Maison Club, and the Madrid Club to each. A voice-data-video gateway is included at each MDU buildings in Naples had put up with a limited offering for voice, resident’s apartment, which then feeds a copper-based network data, and video through the local cable TV company, delivered within the apartment. over a 20-30 year-old coax network. The incumbent provider was not interested in upgrading the network to enable today’s “Being a company with our roots in IP technology rather than and tomorrow’s services. RF, the DIRECTV MFH3 system was a natural choice for our networks,” stated Josh Henschell, Managing Director of Ethos Enter Ethos Media LLC. Ethos is an innovative Michigan-based Networks. “We can easily add voice, data, and other services as company comprised of veteran IP-network operators. Being an customers demand them. The 100 Mb/second network gives us innovator, Ethos has a firm grasp of the importance of looking sufficient capacity for short and longer-term bandwidth needs, ahead to anticipate services customers need today and tomorrow. and the network is easily upgradeable in the future.” This approach has led them to deploy fiber optic networks within Multi-Dwelling Units (MDU) communities, an approach that is Finally, with a fiber-based network, Ethos knows that future resonating with MDU operators. Recognizing that 3 of the 4 top maintenance costs will be minimal, leading to a long and healthy amenities desired by MDU customers are technology amenities, relationship for residents of the communities. Ethos has put together a top-rated lineup of video and Internet services, with DIRECTV’s MFH3 IP video service as the linchpin of the system. This enables the residents to get the latest in HD programming, a robust video- on-demand offering, and especially pertinent in Florida, access to DIRECTV’s exclusive coverage of golf and tennis, along with NFL Sunday Ticket. Since the system does not use or cross public rights-of-way, the system enables Ethos to bundle multiple MDU properties using the same core headend equipment to enable larger quantities of scale than would otherwise be available.

The network consists of an MFH3 headend feeding an SFP-based core switch. SFPs are small devices that can either be used with fiber or copper networks. The

17 MFH-3 Platform MFH3™ Platform

DIRECTV’s MFH3 system MFH3 Introduction At the heart of IPTV’s benefits is the use of IP technology to offer multiple services via a single platform. DIRECTV has harnessed • Supports remote management functions using standard this power with the introduction of MFH3 (Multi- Family Housing SNMP management tools, including software upgrades version 3). Not to be confused with traditional IPTV, which uses • Supports a variety of property network wiring topologies public or private metropolitan area networks to deliver video including fiber-to-Cat 5e, fiber-to-Coax and VDSL2 services, the DIRECTV MFH3 system uses IP technology as a • Supports up to 1024 receivers per headend simple distribution platform to deliver satellite television and other • Supports local program insertion and control of locally services from a private “on-property” headend facility to each encoded analog video sources customer dwelling.

MDU MFH3 Platform Services It enables the delivery of all DIRECTV satellite TV programming DIRECTV MFH3 properties have the added benefit of being and services, using, in many cases, existing in-building wiring able to remotely monitor the performance of the MFH3 such as Cat 5 or Cat 3 data cables and coaxial cable. Because network. This allows property owners and system operators to it is an IP distribution platform, service providers that have won proactively address network issues. All network-managed devices the rights to deliver communications services to MDUs or private that reside at a property including Gateways, Level 2, and Level 3 planned communities can easily integrate MFH3 with their existing Ethernet switches are continuously monitored over a secure VPN voice and Internet services to deliver triple play services over a connection. As an added benefit, you have the ability to view the single infrastructure. MFH3 supports all DIRECTV programming current state of all MFH3 systems deployed at your properties and services, including the new Ka-band services. from anywhere via the Internet. MFH3 System The MFH3 system uses the new “i” series DIRECTV receivers and enhanced software features to enable support for video services delivered using IP technology. At the center of the platform is the MFH3 Gateway technology, which converts DIRECTV signals DIRECTV HR20i HD DVR into industry-standard multi-cast IP video packets, for delivery to The DIRECTV MFH3 satellite distribution system is a MDU MFH3-enabled DIRECTV receivers. The Gateway deploys a feature solution that operators cannot afford to do without. With set that enables efficient and near error-free delivery of DIRECTV seamless integration to existing systems, multiple deployments programming, with the flexibility to easily upgrade services as new across a range of wiring topologies, reductions in capital and features are deployed. With support for fiber, coaxial and Cat 3/5 cabling the system is compatible with a wide variety of existing operating expenditures along with additional revenue opportunities buildings and is in line with current new construction practices. by providing coveted triple-play services to customers, operators need not wait for another system or look any further – MFH3 is a MFH3 makes extensive use of industry-standard equipment for proven success. the system’s signal distribution components such as commercial- off-the-shelf (COTS) routers, switches, DSLAM/CPE systems, and remote management gear. The appropriate signal distribution system is determined based on the number of subscribers, existing infrastructure, and other factors that impact the overall system solution.

Other features of MFH3 include: • Integrates with High-Speed Data services, allowing operators to support double and triple-play bundles AFLtele.com/go/MFH3

Making the Access NETWORK 18 PLANNING & IMPLEMENTATION GUIDE High Speed Internet

High Speed Internet Access (HSIA) Challenges for Hospitality Providers

Over the past 10 years, the Internet has evolved from an interesting technology with massive potential to becoming an indispensable service that’s viewed by travelers as a utility on par Infrastructure with keeping the lights on or ensuring clean water from the tap. The biggest question is wired versus wireless.

This has placed many hospitality providers in the unexpected When building out a new property, there’s no question that having position of serving as network provider and operator. Hotel at least 2 or 3 Cat5-6 drops to each room is critical for delivery Information Technology staff now need to become experts in of existing and future services. Coaxial cable is still useful for wired and wireless delivery mechanisms, communications media video delivery, although the long-term trend over the next 10-20 including Category 3/5/and6 copper cables, various grades of years is clearly towards IP delivery of video services, which is coax cables, fiber optics, the wireless bands available for various more efficiently delivered over either structured Cat5/6 cabling functions. On top of that, there are different wireless technologies or fiber optics. There’s a case to be made for including fiber for different functions including Wi-Fi and cellular for both voice optics to each room to accommodate future services. The price and data services. of single-mode fiber, which is the fiber type most commonly used to delivery voice, data and video services by triple-play providers, Finally, providers need to make sure that high margin business has dropped dramatically over the past decade, such that a new travelers receive impeccable data services, while balancing the property or one undergoing extensive renovation should plan to needs of recreational travelers who may decide to watch a movie include fibers to each room, even if they’re not immediately lit. on their home DVR over the hotel network. The main driver for fiber to the home is bandwidth delivery, mainly to accommodate HDTV and other video-based services. It’s a set of daunting tasks, but HSIA can be a strategic weapon in keeping customers happy and winning long-term loyalty. This For existing properties, there’s no question that a wireless service article will lay out some of the challenges and potential rewards is the most efficient way to deliver a high quality service. when dealing with HSIA services. The first generation of services deployed by hotels earlier this decade was often just an extension of home Internet routers, with multiple deployed on a floor to provide coverage. Over time, this method has been proven to have several significant disadvantages, including high up-front capital costs, installation deployment time and disruption to the property, constant maintenance, and the inherent limitation associated with a non- meshed service.

These are now being replaced by newer, more advanced technologies, including wireless Mesh technologies. These technologies were originally developed for widescale deployments in municipalities and other areas, with the ultimate goal of having Hospitality a subscriber seamlessly transfer internet service from one node

19 High Speed Internet

to another, similar to the way that cellular calls are transferred Relatively inexpensive tools are available that can groom Internet from one cell tower to another. Although it’s still used in those traffic and ensure Quality of Service (QoS) for those guests with applications, hotels, resorts, and stadiums have also realized that legitimate business applications, and manage those this type of technology has significant advantages over the first high-bandwidth applications, such as video. generation of services. If desired, these tools can be connected to the property’s billing These mesh technologies have very powerful receive sensitivity, system, opening up many new opportunities. First, the property so they can receive the signals from a typical laptop computer can begin to provide different levels of service, with a basic from a farther distance, resulting in fewer nodes to needed to level of service provided free of charge, ranging in price and cover a property. Although the nodes themselves are more capabilities as the expected complexity and bandwidth usage expensive, there are fewer of them, resulting in both decreased of the application rise. For example, the service can be set to capital and labor costs to deploy. Since fewer nodes are used, provide a 256K-512K service for typical web-based applications less maintenance is needed to keep the network up and running. that a leisure traveler may want to use. A next tier could include These nodes are most commonly deployed outside of the access to corporate VPNs at a faster speed. An even higher tier property, resulting in much faster and less disruptive installations/ can include lightning-fast access to video and other applications. maintenance. An additional advantage of tiering services is that the revenue gained from the top-tier users can be used to partially or totally An additional advantage of a mesh network is that customers offset the cost of the additional bandwidth that they consume. can now maintain connectivity while traveling anywhere in the This approach enables the property to meet expectations of property, instead of needing to re-associate with a new access the wide range of travelers without breaking the bank to do so. point when moving throughout the property. This feature is Once the service has value to travelers, the property could choose becoming increasingly important as guests increasingly carry to provide upgrades to frequent travelers as a valued amenity. smaller devices that can use Wi-Fi signals, such as Apple’s iPod Touch® device. By viewing the technology infrastructure as a important key to a pleasurable stay, the property can use the services to gain customer loyalty and gain positive impressions that will last far Service Management beyond the checkout time.

Finally, in so many properties, although HSIA is viewed as a necessary amenity, property owners have not viewed it as a strategic weapon. However, for the high margin business traveler, a good Internet connection can make the difference between a good and bad business trip. Too many times, the Internet experience is not good and leaves a bad impression on the traveler.

This doesn’t need to be the case. There are several ways that a property can cater to the connected traveler tat enhance value to

Hospitality both the traveler and the property.

At a minimum, a property needs to set up Information Systems technology to managed traffic to ensure a good experience. If the tech-savvy guest in room 206 decides to watch his TV over the hotels’ network or set up a temporary spam server off of his laptop, the guests in other rooms will be the ones to notice by their slow connection.

Making the Access NETWORK 20 PLANNING & IMPLEMENTATION GUIDE Peabody Hotel Case Study

When it comes to traveling destinations in the United States, Disney World, Sea World, and Universal Studios can be considered a tourist vacuum. As one of the most frequently visited destination spots in the world, Orlando is not only limited to vacation seeking families, but businesses as well. Orlando is a city with a booming conference and convention scene. The weather makes it ideal for company retreats and seminars. Given the high rate of traffic, Orlando also has the reputation for the best hotels in the country. At the top of the list is the Peabody Hotel, one of the most luxurious sites in the city. Priding itself on catering to the meetings and conventions industry nationwide, the Peabody Hotel has established itself as the Orlando convention hotel of choice for the nation’s professional meeting planners. Name of Client: According to a recent survey, the most important amenity for a Peabody Hotel Group hotel guest is Wi-Fi or tiered Internet connectivity. This is what the Peabody Hotel had in mind when it began its hotel expansion earlier this year. Peabody hired Metro Construction, a general Location: commercial contractor headquartered in Memphis, to construct Orlando, Florida a $450 million expansion of the hotel, as well as AFL Network Services, a highly regarded company in the telecommunications industry, to install a superior network infrastructure. Name of Project: Network Infrastructure Expansion Providing a network infrastructure for this new expansion is no easy task. With a target completion date of November 2010, the expansion includes a 34-story guest room tower with 1,641 Scope of Project: luxurious rooms, all of which require Wi-Fi connectivity; three new AFL Enterprise Services worked with Metro pools, each with poolside cabanas capable of high-speed Internet Construction to provide network infrastructure access; expansion of the hotel’s meeting and convention area, for an extensive expansion of the Peabody Hotel both areas need to have Internet access for visiting guests as well consisting of: as an infrastructure that can monitor billing and guest Internet access. • Installation of voice, video and data • Installation of more than 1 million In order to provide a voice infrastructure, AFL will install nearly feet of Cat5e and Cat6 cable one million feet of Cat5e cabling. This cabling is intended for • Cabling for CCTV and CATV high-speed data applications, providing basic voice service for • Fiber backbone consisting of AFL the rooms. RG-6 cable will also be installed for the transmitting fiber connectors of cable television. About a million feet of Cat6 cable with connectivity will also be installed to allow for a high-speed data infrastructure, helping facilitate records, billing, and information Schedule: that the hotel will store in its computers. The entire fiber February 2009 – November 2010 backbone will consist of AFL fiber and connectors. Hospitality

It’s only fitting that the best network infrastructure is in the best Completion Date: hotel of one of the most visited cities. As work continues on the November 2010 expansion, AFL Network Services has proven that it can handle jobs of extreme magnitude.

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Special Summit Guest: National Broadband Leaders RURAL TELECOMMUNICATIONS CONGRESS Named as Summit Chairmen Sponsors of Rural TeleCon Broadband for Rural Prosperity Broadband Properties welcomes the Rural Telecommunications Congress to Summit 2010. RTC has been invited to hold its own event adjacent to the Summit.

RTC Mission Statement:

To advance community, research, healthcare and economic development in rural areas Honorary Summit Chairman Special Summit Chairman Honorary Summit Chairman through the application of technology. Tim Nulty The Hon. Hilda Legg The Hon. Graham Richard East Central Vermont Vice Chair Former Mayor and State Senator Community Fiber Network Broadband Properties Magazine National Broadband Champion RTC Background: • 1997 — A group of concerned citizens, local and state government officials, consultants and START PLANNING NOW FOR SUMMIT 2010. others begin meeting in Aspen, Colorado each fall to discuss how the Western states can This year’s event will be at a new location – an excellent hotel in a vibrant benefit from high speed broadband services. Concerns include the need for knowledge at neighborhood full of superb dining and other attractions. the grass roots level about applications for education, health, government, and the private The InterContinental is convenient to the two main airports in Dallas – sector. The conferences attract 150 – 200 attendees. DFW and Love Field – and adjacent to Addison Airport, ideal for private aircraft. • 2001 — Organizers reach out nationally, attracting attendees from the Eastern states. It’s the leading event for network builders and deployers. The Rural Telecommunications Congress is formed, officers elected, by-laws written. The Summit is widely recognized as the number one venue for information on digital and broadband technologies for buildings and communities. The RTC, with its exclusive focus on rural issues, immediately becomes “the national rural telecommunications conference” to attend. Activities and Sessions Include: • Newest Case Studies on How Broadband Spurs Economic Development • Applications to • 2002 — Conference in Des Moines draws well over 350 attendees, with every state Generate Profits for Network Operators• Awards for Today’s Leading Broadband Communities represented. Event features a Federal Resource Center and nationally recognized speakers • World-Class Keynoters • Evening Receptions and Networking Events from industry and government. The conference includes a large vendor Programs now being planned involve: convention hall and numerous breakout sessions. • The latest broadband strategies of cities and communities • Lessons learned from others – • 2003 — Annual RTC conference is held in Washington, D.C., attracting nearly 400 attendees what to emulate and what to avoid • Sessions on getting your customers and from around the country and the world. constituents on board with your plans. • Panels on increasing the ROI of your buildings. • Roundtables on improving the appeal of your properties. • Annual events continue to attract up to 400 — a worldwide network of practitioners, Who Should Attend: advocates and technologists dedicated to the quality of life in rural communities. Attendees include all those involved in the design and development of communities, including: — 2004 in Spokane, Washington • Real Estate Developers • Property Owners • Independent Telcos • Municipal Officials — 2005 Lexington, Kentucky • Private Cable Operators • Town Planners • Economic Development Professionals • Architects and Builders System Operators Investors Utility Organizations System Integrators — 2006 Little Rock, Arkansas • • • • Register Early to Receive Major Discounts — 2007 Springfield, Illinois Special Reduced Rates Now in Effect — 2008 Smugglers Notch, Vermont April 26 – 28, 2010 - Dallas To become an RTC member or learn more about RTC, visit: www.rtcconference.org/rtc Online registration starts Nov. 1 * Prior to Nov. 1 call 877-588-1649 To register for the Summit or the RTC special event, visit: www.bbpmag.com Subscribers: You get huge savings at all our events when you are a current subscriber. To Exhibit or Sponsor, contact: Irene Prescott at [email protected], or call 316-733-9122 Subscribe or renew now at: bbpmag. com /subscribe MDU REPORT Continued from Page 38 wireless bandwidth, for instance, to G.hn’s Technical Advantages accommodate the upcoming 4K ultra HDTV, whose sales are expected to start • G.hn’s support of secure and private communications is particularly im- late in 2012. The cost of using G.hn in- portant both for business applications and in MDUs. stead of wireless distribution will prob- • G.hn offers power consumption savings – equipment can go into a low- ably be higher than Verizon’s existing power sleep mode and remain ready to provide service quickly. cost for wireless in-unit distribution, but • G.hn improves quality of service by reducing latency, or the delay be- G.hn would be cheaper to maintain and tween one node and the next, in the home network. would also provide higher bandwidth • G.hn supports at least 20 simultaneously active nodes in a domain. with more security in the long run. • G.hn supports the Broadband Forum TR-069 specification for remote di- agnosis of wiring and packet transmissions throughout the home. This COEXISTING WITH enables the service provider to quickly and easily diagnose problems, OTHER STANDARDS fix them and provision the equipment from an operations center, often Coexistence mechanisms will enable without the customer having to do anything and without dispatching a G.hn to avoid interference with Home- technician to the home. It’s like having a piece of advanced test equip- Plug technology already in use over ment built into every G.hn node. power lines. When a device transmits over power lines, the embedded G.hn Source: Tom Starr, AT&T Labs will be able to sense whether the wiring is already being used by HomePlug devices. G.hn will do this by using the cuts deployment costs. Of course, some home gateways. But for MDU owners, same frequency band as HomePlug ver- states may have to modify their regula- wireless has been a problem, mainly be- sions 1.0 and 2.0 and overlapping that tions regarding demarcation points. cause of security reasons and to some ex- band with other frequencies. Many network deployers are plan- tent because of channel and bandwidth Previously, HomePlug used a higher ning to use wireless-equipped ONTs as limitations. There will not be enough frequency with a range that was not in- Don’t Miss the Broadband Properties Summit Toward a Fiber-ConneCTed world

April 26 – 28, 2010 InterContinental Hotel – Dallas, Addison, Texas “It’s the leading event for network builders and deployers.” The Summit is widely recognized as the number one venue for information on digital and broadband technologies for buildings and communities. Register Early to Receive Major Discounts Special Reduced Rates Now in Effect Visit www.bbpmag.com or call 877-588-1649 To Exhibit or Sponsor, contact: Irene Prescott at [email protected], or call 316-733-9122. For other inquiries, call 877-588-1649, or visit www.bbpmag.com.

October 2009 | www.broadbandproperties.com | BROADBAND PROPERTIES | 63 MDU REPORT

ferent from its counterparts in Europe Why G.hn Is Needed in MDUs or Asia. In this country, the gateway is the dividing line, or demarcation point • Retrofitting buildings with structured wiring using Ethernet cables is ex- (demarc), between the service provider’s pensive, messy and time-consuming. In buildings with concrete walls, network and the property owner’s. In it’s not even feasible. Europe, the demarc is normally on an • Wi-Fi – all aside from speed and security issues – doesn’t provide the inside wall. In Asia, the gateway is sepa- quality of service needed for video or voice communication. Momen- rated from the demarc. tary interruptions may not be noticeable when you’re downloading e- A goal of G.hn standards setters is to mail, but video and voice require continuity. make sure set-top boxes can function in • Power lines and twisted pair don’t usually work well in MDUs, at least their usual way even with added DRM. in the United States, because of interference and cross talk. That leaves Content providers see a need to protect coaxial cable as the physical medium of choice for home networks. high-value video content that will be • HomePNA, the standard most telcos use to deliver signals over coax, is transported over G.hn networks. Tra- limited to throughput of about 200 Mbps – not enough to support new ditionally, a scrambled signal that trav- applications coming down the pike – and it uses frequencies that con- els through the public network and the flict with the RF return signal used by DOCSIS. That’s why it isn’t used by home network is unscrambled in the set- cable companies or by telcos, such as Verizon, that use RF video. top box. But with G.hn, the set-top box • MoCA, the standard used by cable companies (and Verizon) to must be aware that this content might deliver signals over coax, has a maximum throughput of about be stored on a network server or sent on 175 Mbps. A more important concern for MDUs is that MoCA’s DOCSIS- to another device. G.hn envisions the compatible frequencies limit the distances signals can travel. network server’s copy to be viewable on • G.hn replaces all of this “alphabet soup” with a single next-generation other devices, such as computers, that standard. G.hn will deliver signals over coax at speeds and distances previously have not required set-top that will allow providers to deliver next-generation services in MDUs. boxes. This can be done by giving the set-top box two-way communications Source: Michael Weissman, vice president of North American marketing for CopperGate Commu- capability. G.hn will allow for that. nications and a member of the board of the HomeGrid Forum. CopperGate produces HomePNA chipsets, including a chipset for MDUs, and expects to be one of the first companies to deliver G.hn is intended to look the same to G.hn chipsets. the rest of the home network, whether it is supplementing existing structured wiring or interfacing with a Wi-Fi net- cluded in G.hn. The HomePlug Powerline This setup normally requires a two-way work. This is not easy when some of the Alliance remedied this potential problem dialogue between the receiving device content is using a proprietary security by making HomePlug 3.0 aware of G.hn. and the transmitter. Here, handshaking protocol. G.hn-connected devices will HomePlug 3.0 will adjust its distribution is necessary for truly robust security. But need the “smarts” to sort out various security schemes in real time. frequencies to accommodate any G.hn if more bandwidth is taken up by these signal on the same wire. Now, if Home- handshake messages, less will be available Conclusion Plug 3.0 senses that a G.hn signal is on for actually transmitting files. So G.hn “What we’re interested in is having more a power line, it will move its frequency uses the DRM of existing transmission coverage, robustness, reliability, security, to avoid G.hn and preserve compatibil- schemes and does not add a new layer for quality of service and manageability. All ity. [Editor’s note: For an update on the DRM – only for AES general security. of those other dimensions beyond just HomePlug compatibility issue, see the bit rate are where we see the big gains “Bandwidth Hawk” column on page 6.] GATEWAYS AND DEMARCS and differentiation for G.hn technol- G.hn will also mimic packet sizes and Because it is arriving at a time when ogy,” Starr explained. For AT&T, G.hn packet headers of other technology. Pack- gateways are becoming more flexible has the potential to achieve what Starr ets contain mainly the information that and complicated, G.hn technology must calls the “five degrees of improved home is being transmitted – that is, the data it- be able to coexist with network environ- networking”: easy fix, easy add, no new self. But packets also contain the address ments in all regions. The typical network wires, outside only, and complete do-it- of the device that is the intended receiver, gateway in the United States – that is, yourself. “When you bring this all to- along with information that the intended the interface between the outside wiring gether, G.hn is going to be a real game- receiver needs to decrypt the contents. and the home network – is quite dif- changer,” Starr said. BBP

Additional information about G.hn is available in our free digital edition at www.bbpmag.com/bbponline.php

64 | BROADBAND PROPERTIES | www.broadbandproperties.com | October 2009 MDU REPORT Managing Radio Frequency Interference in MDUs Wireless Internet access is increasingly important to tenants – but if devices interfere with each other, Wi-Fi becomes a nuisance rather than an amenity. Building owners must manage the Wi-Fi network to avoid a “crazy quilt.”

By Richard Sherwin ■ Spot On Networks

he use of radio frequencies for 1000 wireless Internet access and 900 data transmission in multiple-

T s 800 dwelling-unit (MDU) structures has become critically important. MDU resi- 700 dents insist on reliable, fast and portable 600 (that is, wireless) connectivity for their 500 laptops, netbooks, gaming devices and 400 smartphones – and even, in a trend that 300 will surely grow, to supplement their 200 Millions of Device cell-phone signals. These devices have 100 become essential to tenants of all gener- 0 ations. A prospective tenant who cannot 2004 2005 2006 2007 2008 2012 connect wirelessly within an apartment or get a strong cell-phone signal may Wi-Fi Devices Shipped (Source: Wi-Fi Alliance, In-Stat) well decide not to rent or buy the unit. Devices that connect using the IEEE tion resulting in slow speeds, intermit- ment. This combination of low instal- 802.11 (Wi-Fi) frequency band are be- tent connectivity and overall dissatisfac- lation cost, maintenance efficiency and coming more and more common. Ac- tion with in-building wireless networks. user-friendliness has contributed to the cording to the trade group Wi-Fi Alli- Service providers often blame “the build- proliferation of consumer Wi-Fi de- ance and the consulting firm In-Stat, ing” for creating these difficulties. 387 million Wi-Fi–enabled devices vices. Wi-Fi is now universally used were shipped in 2008, up nearly 360 Wi-Fi Is the Standard and accepted as an important delivery percent from 2006, and nearly 1 bil- Wi-Fi, which is designed to deliver ser- system for telecommunications within lion Wi-Fi–enabled devices are forecast vices at high speeds over short ranges, has buildings. It has become the standard, to be shipped in 2012. In-Stat also re- become the de facto standard for deliver- recognized as the short-distance, high- ports that more than 1,000 new Wi-Fi– ing data inside buildings in which radio capacity bandwidth mechanism for in- enabled products were launched in 2008 signals from outside cell sites have diffi- building communications. and even more are expected for 2009. culty penetrating construction materials. A recent study by market research This proliferation of wireless devices, Wi-Fi technology is easy to use, firm Parks Associates, as reported in coupled with the difficulties cellular car- reliable and cost-efficient to imple- the May/June issue of this magazine, riers have in delivering reliable cell signal into large MDU buildings, has prompted some carriers to provide their MDU- About the Author dwelling subscribers with individual Richard Sherwin is CEO of Spot On Networks, a wireless Internet service pro- routers or mini-cells that very likely will vider offering managed Wi-Fi in multifamily properties and commercial common interfere with their neighbors’ service. areas. He can be reached at [email protected]. For more information, Such unmanaged wireless services will see www.spotonnetworks.com or the Wireless/Wi-Fi Forum on www.bbpmag.com. usually create interference and conges-

October 2009 | www.broadbandproperties.com | BROADBAND PROPERTIES | 65 MDU REPORT confirms the importance of Wi-Fi to The FCC has declined to become involved in MDUs with a finding that more than 35 percent of multifamily executives call coordinating spectrum sharing in the unlicensed in-unit Wi-Fi the amenity most likely to positively influence the sale or rental of Wi-Fi band. The agency has left coordination up an apartment. to the private sector – and in the MDU world, that Traps for the Unwary means property owners and managers. Some traps still remain for unwary building owners or managers. Because Group offers the following comments it to industry to work out the de- Wi-Fi frequencies overlap, and because, about the Federal Communications tails regarding interference. unlike cellular frequencies, they are un- Commission rules on wireless LANs: As was noted in an FCC licensed (meaning that anyone can use them), potential for interference and These rules primarily specify Technical Advisory Committee degradation exists unless owners and the applicable frequency bands, report in December 2000, “We managers arrange for the efficient, coor- power output limitations and are about to have an unplanned dinated management of radio frequen- a wide variety of technical and real-time experiment on the con- cies within their buildings. other parameters including limi- sequences of uncoordinated spec- Although there are rules that gov- tations on coordination of devices trum sharing by different services ern the use of unlicensed spectrum, in and requiring the use of spread- using incompatible etiquette the United States the management of spectrum radio techniques. The rules.” The experiment has clearly interference issues is left largely in pri- FCC’s policy on sharing unli- been wildly successful, with on vate hands. The advisory firm Farpoint censed spectrum effectively leaves the order of 100 million WLAN

How Good Is Wireless?

Recent articles in this magazine have argued against using wireless as a primary Internet access method on the grounds that Wi-Fi linkages between buildings are problematic and unworkable in student housing; that Wi-Fi access points become choke points; that increasing user speeds and streaming applications will hasten the obsolescence of Wi-Fi equipment; that interference is bound to create problems; and that wireless speeds will never keep up with wired speeds. Although we agree that Wi-Fi linkages between buildings may become oversaturated, especially in student housing, Spot On has designed linkages between buildings using high-speed WiMAX. This eliminates the use of Wi-Fi linkages for this purpose – and eliminates the saturation problem as well. Access points using the newly ratified IEEE 802.11n wireless standard can provide throughput of 300 Mbps or higher. Because these commercial-grade access points serve only four or five users at a time in Spot On’s networks, not only do they not become “choke points”; they enhance the ability to stream data. With the right amount of bandwidth delivered to a community, Wi-Fi networks exceed the performance of DSL and cable CMTS – even with DOCSIS 3.0 – and thus are capable of completely substituting for wired services with greater functionality and communitywide service provision. In-Stat forecasts that 938 million Wi-Fi-enabled devices will be shipped in 2012, more than all devices shipped in the last five years. Therefore, we respectfully disagree that WiFi will become obsolete in the near future. Spot On Networks has been designing networks with frequency reuse such that interference among its network access points is minimized. With the cooperation of building owners, managers and residents, little interference is experienced. Spot On’s Network Operations Center ensures the maintenance of the environment by recognizing and remediating interference events. As an example of the performance of wireless networks in a difficult student housing environment, Spot On Networks provides its services to a 13-building urban campus stretched over a 1-mile radius in an extremely dense environment in New York City. Each user receives a minimum of a 2 Mbps by 2 Mbps secure path to either the school’s servers or the Internet, and all buildings are connected wirelessly from a central demarcation point. All users are connected to the network via Wi-Fi, whether they are in residences, classrooms or amenity areas. While Wi-Fi networks must be upgraded to avoid equipment obsolescence, the same is true of all technology- driven networks, wired or wireless – as witnessed by ATT’s recently announced $18 billion upgrade. As the Wi-Fi service provider, Spot On Networks assumes responsibility for upgrading all our wireless networks.

66 | BROADBAND PROPERTIES | www.broadbandproperties.com | October 2009 MDU REPORT

devices sold in 2006 alone. (Far- point Group, “The Invisible Threat: Interference and Wireless ExpAnDED MulTI- LANs,” January 2008.) A recent FCC publication, “Tech Topic 10: License-Exempt Wireless HousIng progrAM Applications for Public Safety,” is even An Agenda Developed by Industry leaders more explicit, saying, “the FCC won’t help resolve any interference issues ei- • Future of Multifamily Design: What Building Styles, Systems and ther!” The FCC expects that sharing Applications will Dominate Tomorrow’s Multifamily Community? and coordination arrangements will be • Case Study: Switched Digital Video made locally to ensure that residents obtain the services they need. • Case Study: The Real Value of an Owner’s Marketing Efforts for This means that determining who Providers should manage and control Wi-Fi fre- • What is the Cost of Having Two Triple Play Providers Serving One quencies within a building becomes Community? critical. Uncoordinated use can create an environment that reduces Internet • Regulatory Update access speed and causes disconnections • 4th Annual Legal Leaders Panel and other interference issues. • Points of Demarcation: Have the Lines Become too Blurry to See? When tenants use over-the-counter Wi-Fi modems and access points inside • What is the Value in Bulk Services? their own units and supplement their • Owner Discussion: Marketing Agreements and Industry Trends cell-phone services with carriers’ cell-to- • Due Diligence: How do you Evaluate an Existing Multifamily Wi-Fi services such as T-Mobile Phone Community? UMA or ATT’s Wi-Fi service, potential interference and degradation issues arise. • The Value Proposition for the Consumer The only proven way to ensure a high- • Providers Panel: What do Providers want from Multifamily Owners, quality wireless experience in a multifam- Managers and Builders? ily environment is a strategy that governs placement of wireless equipment as well as frequency coordination. This will allow multifamily owners to build a unified network rather than a crazy quilt of unmanaged wireless access points. The Building Owner Advantage Managing Wi-Fi radio frequencies creates a major advantage for a building owner because an efficient Wi-Fi environment allows managed access to reliable, high-quality service. Conversely, interference on Wi-Fi frequencies leaves April 26 – 28, 2010 a negative impression on residents of MDU buildings and can even be an im- InterContinental Hotel – Dallas pediment to a successful lease or sale. Reducing interference increases Addison, Texas speed, bandwidth and capability within a building. Once a building owner ar- The Leading Conference on ranges for the management of the radio frequency in the Wi-Fi band, interference Broadband Technologies and Services for Internet access will be reduced, and To Exhibit or Sponsor, contact: Irene Prescott at residents will recognize improvement [email protected], or call 316-733-9122. in the quality of service through faster, For other inquiries, call 877-588-1649, or visit www.bbpmag.com. more dependable connections. BBP

October 2009 | www.broadbandproperties.com | BROADBAND PROPERTIES | 67 MDU REPORT Another Case of the Bends Ultra-bend-insensitive fiber gives FTTH deployers more options for cost-effective installation, both in MDUs and single-family housing.

By Guy Swindell ■ OFS

n the last few years, fiber deploy- installation crews’ trucks and splice ments in multiple-dwelling units where needed. I(MDUs) have drawn a great deal of In most cases, the result looks like attention. Many potential customers the photograph to the left. A loose-tube live in dense urban environments, and cable with conventional single-mode connecting them requires a lot of cre- fiber terminates into a wall-mount ativity. The industry has been saturated closure on the side of an eight-unit, with new technologies that focus on this garden-style MDU. From there, eight application, none of which has garnered EZ-Bend 4.8mm indoor/outdoor cables more attention than the new ultra-bend- are bundled together, spliced to the in- insensitive fibers enabling copper-like coming loose-tube cable and routed installation methods inside buildings. along the outside wall into the attic. Because of the scale of the deploy- Inside the attic, the cables are stapled ments and the players involved, ultra- to the rafters and then routed down bend-insensitive fibers were immedi- behind the drywall into each cus- ately associated with big-city skylines tomer’s premises, where they are again and high-rise developments. However, spliced into a wall outlet serving the focusing on high-rise deployments to ONT. Recabling and splicing an eight- the exclusion of other FTTH applica- unit building takes about an hour and tions ignores some other creative uses of a half. this technology. In fact, some of the first Although the fiber cable is behind deployments of ultra-bend-insensitive Splice with bundle of eight EZ-Bend cables. the drywall and inaccessible from the fibers have occurred in rural and small- customer’s apartment, the cable suffers town settings where the skyline consists The municipality decided to install substantial abuse in the attic. First, be- of the local water tower and surround- new cable in each building and dedicate cause there are no existing pathways, ing mountains. an optical network terminal (ONT), in- the cable is subject to severe bends and stalled indoors, to each subscriber. Be- installation stress, and must usually be Bending It Garden Style cause this approach involved construc- secured with a staple gun. Second, attic A municipal utility overbuilder in the tion in older buildings with multiple temperatures in this part of the country Southeast was one of the early deploy- layouts, it required a very robust and are varied and impressive. Therefore, the ers of ultra-bend-insensitive fiber. The versatile solution. cable must be able to sustain the bends municipality had largely completed The municipality’s installation crews accompanying the expansion and con- overbuilding a midsize city with FTTH, were equipped, trained and well-prac- traction of materials over many years of using a GPON solution with video sup- ticed in fusion splicing. Rather than temperature extremes. ported by a 1550nm RF overlay. Al- trying to determine the lengths required though single-family residential cus- for factory-terminated assemblies in Mountain Bends tomers were subscribing to the service each situation, the municipality decided Another very early deployment of EZ- at a respectable rate, a sizable population to simply carry EZ-Bend spools on the Bend cables was about as far removed of potential subscribers in garden-style MDU developments remained unserved. These garden-style complexes consisted About the Author primarily of two-story and three-story Guy Swindell is applications engineering manager for OFS, a manufacturer of opti- buildings with between eight and 16 cal fiber and connectivity products. You can reach him at [email protected]. apartments per building.

68 | BROADBAND PROPERTIES | www.broadbandproperties.com | October 2009 MDU REPORT from a big-city skyline as can be imag- home. As long as the technician had to tomer premises (even the most strident ined. Sunset Digital is a competitive enter the home, the indoor ONT offered FTTH advocates like to keep splice overbuilder in rural southwestern Vir- attractive cost savings by eliminating the closures out of the living room). The ginia. It deploys aerial and underground need for a device hardened for outdoor solution was an EZ-Bend 4.8mm cable infrastructure to rural and small-town use. Thus, Sunset Digital found an in- terminated with splice-on connector customers, most of whom live in single- centive to go “back to the future” and technology. family homes. Those customers receive install ONTs using methods that had For this type of application, cable op- IP-based FTTH services delivered cour- been perfected years earlier with DSL tions were few, but cable termination op- tesy of an Ethernet switched optical net- and cable modems. tions were many. The cable needed to be work platform (point-to-point FTTH). The only problem with installing extremely robust, discreetly small, flame After Sunset Digital had been in the ONTs indoors was the risk of exposing retardant and compatible with Sunset’s FTTH business for a few years, its cost fiber optic cable to the hazards inside the installed base of fiber. Only a couple of model began to show that substantial customer premises. To make the concept cable solutions on the market fit that de- savings would accrue from locating the work, Sunset needed a cable that the cat scription. In addition, EZ-Bend’s solid- ONTs and all other customer-premises could chew, that the vacuum cleaner glass structure permitted use of all the equipment indoors. Technicians ei- could run over, and that could be bent standard termination techniques and ther had to bring power out of a house sharply without concern about bending off-the-shelf connector options available from the inside or take fiber into the loss shutting off the Super Bowl game. for conventional fiber, including me- house from the outside; either way, they The company also needed to minimize chanical splicing and factory-installed couldn’t avoid going into the customer’s the amount of hardware inside the cus- assemblies.

New Technology – With a History

The newness of bend-insensitive fibers has been somewhat exaggerated. Well over two decades ago, AT&T offered single-mode optical fiber, based on a depressed-clad design, that had only a fraction of the bend-sensitivity of conventional single-mode fiber. That product is still manufactured and still widely used in some high-data-rate applications where its properties make it more desirable than conventional alternatives. Of course, AT&T exited the manufacturing business some time ago, but the product continued under the brand names of Lucent Technologies and now OFS. What’s new about bend-insensitive fiber is the broad selection of bend-insensitive (BI) fibers now available in the market. The original BI fiber developed by AT&T Bell Labs was improved in 2006 to a full-spectrum BI ITU G.657A fiber now known as AllWave FLEX fiber. Many other ITU G.657A fibers have been introduced to the market, all with bending characteristics superior to conventional single-mode fiber; some exhibit excellent splice compatibility with other widely deployed products. These G.657A fibers have moved beyond jumper assemblies in FTTH and have found their way into fiber distribution hubs, outside-plant drop cables and almost every other segment of the last-mile network. Hancock Telephone of Indiana, for example, deployed OFS’ AllWave FLEX fiber in distribution cables running through the neighborhood as a way of reducing trouble calls. An even more bend-insensitive fiber type, known as G.657B, was developed to address new needs for cabling inside homes and MDUs. However, testing and customer evaluations showed that G.657B fiber was still not sufficiently bend-insensitive for customers who wanted inside drop-fiber installations to be as fast and easy as copper. Because of this recent need for fiber inside homes and MDUs, the fiber types getting attention lately go far beyond the current ITU G.657A or B standards for bend insensitivity. Installers can treat these fibers in ways that few copper cables could handle, including stapling them to walls and routing them around 90-degree bends. In fact, the International Telecommunication Union is now considering creating an ITU G.657C standard to properly address this application. One of these new fiber types, resonance-assisted fiber (RAF), developed by OFS Laboratories and branded as EZ- Bend fiber, offers ultra-bend-insensitivity while retaining the solid-glass structure of conventional fiber. RAF provides superior or compliant bending loss relative to carriers’ requirements. (Additional details about RAF performance are available in a recent technical paper, “Performance of Single-Fiber and Multi-Fiber Ultra Bend Insensitive Indoor Opti- cal Drop Cables,” by Peter A. Weimann and William S. Allen of OFS FITEL LLC, to be published in the proceedings of IWCS November 2009.)

October 2009 | www.broadbandproperties.com | BROADBAND PROPERTIES | 69 MDU REPORT

tion and splice it with a handheld, fixed V-groove fusion splicer. The first splice is made to the cable routing to the building, which holds a conventional single- mode fiber from one of many possible vendors, and the second splice is made at the ONT to either a splice-on connector or a pigtail with yet another fiber type. The technical observer will note that we have a lot of mismatched fibers and a lot of splicing equipment. Yet the setup works extremely well. Installation technicians splice the ultra-bend-insensitive EZ-Bend cable to standard single-mode fibers using standard equipment and standard splice menus. For the tech with the staple gun, the cable is just like coax. For the tech with the splicer, the cable is just like conventional single-mode. What’s Around the Bend? Prepping EZ-Bend for splice-on connector. Staple guns, tabletop obstacle courses and mandrel wraps all make great The Sunset Digital technicians re- not big parts of the ultra-bend-insen- trade-show fodder for BI fibers. How- ever, the versatility of the technology is sponsible for installing drops to the sitive value proposition – indeed, they what will enable new FTTH applica- home are fully equipped and trained for are. However, the technology may still tions. Cost reductions in both multi- fusion splicing. Thus, splicing EZ-Bend be the best fit for an application without family and single-family installations fiber to the drop cable at the side of the these variables. can result from combining ultra-bend- home and using the same fusion splicer In the two deployments we discuss, insensitivity with the options of easy to install a FITEL Splice-On Connec- crews arrive at a location with a box of splicing and conventional fiber termina- tor at the ONT was an easy and elegant unterminated cable that could be easily tion. Resonance-assisted fibers open up solution. This approach eliminated ad- mistaken for Cat 5 if not for the label on all those possibilities, plus others that ditional splice apparatus in the customer the side. They route the cable into posi- may be just around the bend. BBP premises, provided a factory-installed quality connector at the ONT, eliminated any need for cable slack storage and reduced material expenses. Perhaps just as important for an in-residence fiber deployment, the solution was low- profile and aesthetically pleasing.

Installing Ultra-Bend- Insensitive Fiber Suppliers of ultra-bend-insensitive fibers have marketed them on the basis of their copper-like installation qualities, especially their ability to support low-skilled labor. Most of the marketing has cen- tered on factory-terminated assemblies that crews can install without splicing. However, both of our examples involve well-trained, experienced installation crews using fusion splicing. This is not to say that factory-terminated assemblies and the use of low-skilled labor are Sunset Digital routing fiber through the crawl space.

70 | BROADBAND PROPERTIES | www.broadbandproperties.com | October 2009

NMHC Conference & Expo Featured Exhibitors and Companies to Meet at the 2009 National Multi Housing Council Apartment Technology Conference and Exposition November 8–10 • Phoenix, Arizona

To contact companies that do not have booth numbers, see Broadband Properties at booth #114.

ADC The Calix C7 multiservice access platform enables the de- ADC provides the connections for ployment of legacy and advanced broadband services, including wireline, wireless, cable, broadcast and GPON. Its E-Series includes Ethernet platforms for delivering enterprise networks around the world. copper- and fiber-based services, including a new residential ADC’s innovative network infrastruc- active Ethernet platform, and its P-Series offers a broad port- ture equipment and professional services folio of optical network terminals for residential, business and enable high-speed Internet, data, video MDU deployments. All Calix products are managed by the and voice services to residential, business and mobile subscrib- Calix Management System, which provides a single network ers. ADC has sales into more than 130 countries. Learn more view and advanced management capabilities across an entire about ADC at www.adc.com. unified access infrastructure. Founded in 1999, Calix is headquartered in Petaluma, Ca- lif., with offices in Boston and Minneapolis. For more informa- AT&T tion, see ww.calix.com. Booth #317

Delivering the Latest in Tele- Corning Cable communications and Enter- Systems tainment Solutions As a leading global provider of advanced communications Corning Incorporated developed the first optical fiber for services, AT&T, through its dedicated AT&T Connected communications in 1970 and remains a world leader in spe- Communities organization, works closely with apartment cialty glass and ceramics, creating and manufacturing key- management and ownership groups, single-family builders stone components that enable high-technology systems. Corn- and developers to serve customer needs with the latest services ing Cable Systems develops and manufactures a broad range available. To learn more, visit www.att.com/communities. of optical cable, hardware and equipment designed to make fiber-to-the‑x (FTTx) deployments faster, easier, more reliable and more efficient. In 2007, Corning introduced its innova- Calix tive ClearCurve product suite, based on bend-insensitive op- Calix is the world’s larg- tical fiber. ClearCurve solved historical technical challenges est equipment supplier fo- for telecommunications carriers installing fiber-to-the-home cused solely on access, and (FTTH) networks in multidwelling units (MDUs) and other is North America’s most widely deployed fiber-to-the-premises complicated deployments, and Corning continues to expand solutions provider. The Calix Unified Access Infrastructure -al the product suite with technological innovations. lows providers to deploy any service over any media type and Corning Cable Systems Evolant Solutions for Carrier Net- protocol via a form factor that fits their deployment needs. works deliver tip-to-tip product and service offerings for FTTx, The company has equipped many rural systems and pioneered CATV and wireless applications, with preconnectorized solu- long-range OLTs. tions revolutionizing the way FTTx networks are deployed.

72 | BROADBAND PROPERTIES | www.broadbandproperties.com | October 2009 NMHC Conference & Expo

Whatever your network needs, Corning has the solution. For GLDS more information, see www.corningcablesystems.com. WinCable sets a new standard for cable billing and subscriber manage- Comcast ment software. Digital and analog set- Booth #416 top boxes, conditional access, satellite, cable modems, VoD and VoIP are all Comcast Corporation managed directly from the WinCable (www.comcast.com) is system. GLDS also offers Web-enabled the nation’s leading fiber optic network for TV, phone and Inter- customer self-care (including bill view, subscriber self-upgrades, net. We value our partnerships with multifamily communities PPV, and credit card payments). as we help them deliver the best in entertainment to their residents. All three Comcast services bring valuable benefits to each • Designed for the requirements of private and municipal customer’s home: Comcast Digital Cable with On Demand, cable operators Comcast Digital Voice with unlimited nationwide calling and • Support for interdiction, FTTH, Digital, VoIP and more Comcast High-Speed Internet with Powerboost. Serving resi- • Landlord/tenant billing options. dents in 36 states and the District of Columbia, Comcast will Serving small and midsized operators, GLDS has imple- partner with you to meet all of your residents’ communications mented its solutions for more than 300 cable systems in 49 needs. Come visit our booth at the National Multi Housing U.S. states and 40 countries worldwide. Contact GLDS Sales Council’s Apartment Technology conference in Phoenix! at 800-882-7950.

Connexion Multicom Inc. Technologies Booth #419 QAM, 8VSB, ITU J.83 An- nex A and B – have you looked Connexion Technologies customizes and manages state-of- at a spec sheet for a new mod- the-art communications networks in single-family, multifam- ulator lately? Our industry is ily, high-rise, resort and hospitality properties nationwide. Its experiencing an upheaval of award-winning networks optimize the communication expe- new terminology, applications and technology! How do you rience and the value of properties for residents and property keep pace? Here’s the good news: You don’t have to! owners, creating A Better Connection. Connexion Technologies Multicom’s experienced sales engineers have proven track re- is not a service provider; rather, it selects and manages a port- cords for providing the product and service solutions you need, folio of providers that offer entertainment and communication when you need them. With 13,000 products from more than applications, including the best in enhanced television, tele- 270 of the world’s major manufacturers in stock, we provide phone, Internet and other services over Connexion’s provider- not only the answers to today’s most challenging questions but neutral networks. The company is based in Cary, N.C. It was also the products to implement the most sophisticated projects. established in 2002 and serves properties in 20 states. For more Look to Multicom when you need reliable information – and information, visit www.connexiontechnologies.net. the products and experience to back it all up. Multicom will also design your distribution system, pro- DIRECTV vide a complete priced bill of materials and then rack, balance Booth #308 and crate your headend for a complete plug-and-play solution. In business since 1982, Multicom is a full-line stocking DIRECTV Inc., the nation’s num- distributor and manufacturer of products used for the end- ber one satellite television service, to-end integration of television, data, voice and security over presents the finest television ex- fiber, coax and copper. For competitively priced products and perience available to 18.3 million services, call us at 1-800-423-2594, e-mail us at multicom@ customers in the United States multicominc.com or visit our premier Internet resource Web and leads the HD revolution with site at www.multicominc.com. more than 130 HD channels – more quality HD channels than any other television provider. DIRECTV subscribers en- OFS joy access to more than 265 channels of 100-percent digital picture and sound, exclusive programming, industry-leading OFS (www.ofsoptics.com), a customer satisfaction (surpassing all national cable companies world-leading designer, manu- for nine years running) and superior technologies that include facturer and supplier of optical advanced DVR and HD-DVR services and the most state-of- fiber products and solutions, $)XUXNDZD&RPSDQ\ the-art interactive sports packages available anywhere. To learn can help Fiber-connect your more, visit www.directv.com. Community with a high-performance FTTH portfolio that in-

October 2009 | www.broadbandproperties.com | BROADBAND PROPERTIES | 73 NMHC Conference & Expo cludes well-known brands such as the comprehensive, end-to- Spot On accommodates the devices your residents use today, end FOX Solution (Fiber Optics to the X), ultra-bend-insen- whether those are laptops, desktops, DVRs, smartphones, T- sitive EZ-Bend Optical Cables, V-Linx Spool & Play Solution Mobile Wi-Fi cell phones or even the Wii. for MDU deployments and all-dry optical cables. Spot On’s state-of-the-art customer service allows manage- OFS’ innovative FTTH solutions help deliver fiber directly ment a worry-free environment. to homes, businesses and MDUs and support high-quality rev- Reap the benefits of a must-have amenity while providing enue-generating services, such as HDTV, online gaming and savvy tenants with the services they demand and expect. Take video on demand, that can increase return on investment and the opportunity now to stay ahead of your competition. property values. OFS’ ultra-bend-insensitive EZ-Bend Cables are the ideal Suttle solution for MDU and in-home wiring applications and can be Booth #404 routed around sharp corners and stapled using the same simple practices and installation tools used for copper service cables. Founded in 1910, Suttle is widely accepted by the world’s larg- Available in riser, plenum, LS0H and indoor/outdoor versions, est service providers as providing leading residential connectiv- EZ-Bend Cables are RoHS-compliant and free of heavy met- ity solutions. The company’s high-quality products are backed als. by best-in-class customer service, a 25-year warranty on certi- Other OFS solutions include state-of-the-art FITEL fusion fied systems and a free online training program for CEDIA splicers and tools; bend-optimized AllWave FLEX ZWP fiber; and BICSI credit. Suttle is an ISO 9001- and TL9000-regis- AllWave FLEX Jumpers and Fanouts; and all-dry Fortex and tered communications company based in Hector, Minn. For AccuRibbon cables. OFS can also help optimize your network more information about Suttle or its family of products, visit design with its OptiCost FTTH Modeling services. www.suttleonline.com or call 800-852-8662.

Satellite Management Services Time Warner Cable Satellite Management Services is the oldest and most respected supplier of goods and services to the private cable industry. We are your single TWC Community Solutions, Time Warner Cable’s business source for design, headend and dis- unit dedicated to multifamily and student housing, is more tribution equipment and a national than just another service provider. We partner with our cus- distributor of virtually all the pro- tomers to provide the high-quality video, voice and data ser- gramming options available. We are vices they have come to expect. In addition, we create unique also an authorized VAR of the Dish and compelling solutions that benefit our partners’ bottom Network PCO Program and have lines because of our flexibility, creative billing programs and distribution rights to package IP-based video programming as competitive pricing. well. The core of the SMS management team has been together Our advanced fiber network delivers exciting new services for more than 20 years. Our team members expertly guide cus- that are not available from the phone companies. For example, tomers through an ever-changing technology landscape with digital cable customers will soon enjoy DVR-like features with- custom solutions for every broadband scenario. Simplify your out the DVR. “Look Back” allows customers to watch favorite life and make the call to SMS. Call 800-788-8388 or visit us shows they missed, while “Start Over” lets them start a show on the Web at www.smstv.com. at the beginning when it’s already running. Those are just two of the many innovative services we’re introducing to make life better for your residents. Contact us today to learn how you Spot On Networks can provide your residents with the latest innovations in video, Booth #117 voice and data services. For more information, see www.time- Spot On Networks warnercable.com. (www.spotonnetworks.com) provides extremely cost-effective, secure, high- Toner Cable Equipment speed wireless Internet services to MDUs in apartments and community common areas. Spot On partners with the coun- Toner Cable Equipment Inc. try’s leading property owners, developers and managers to is a manufacturer and full- provide a must-have amenity that helps increase and maintain line stocking distributor occupancy, raise renewal and sales rates, create an additional of cable television equip- revenue stream and ultimately differentiate the property. ment in business since 1971. Services include custom building Proven, secure Wi-Fi technologies and robust, state-of-the- of headends and FTTx, technical sales staff, same-day ship- art equipment increase the community’s value to its residents. ping and television system design assistance. Products include

74 | BROADBAND PROPERTIES | www.broadbandproperties.com | October 2009 NMHC Conference & Expo modulators, processors, satellite receivers, HD encoders, Edge FiOS Internet, TV and phone services over the most advanced QAM modulators, multiplexers, character generators, fiber op- all-fiber-optic network obtainable. FiOS can help increase your tic equipment, equipment cabinets, RF amplifiers, coax cable, property’s profitability and add to its long-term viability. Veri- taps, splitters and connectors. Our extensive in-stock inventory zon makes it easy, providing custom installation with dedica- includes products of more than 100 manufacturers, including ted management and engineering teams and ongoing customer Blonder Tongue, Adtec, Contemporary Research, Drake, Ol- service. Learn how to enhance the value of your community at son Technology, Pico Macom, Force, Ortel, CommScope, Pa- www.verizon.com/communities. BBP cific Broadband Networks, Times Fiber, Gilbert, Sadelco and Middle Atlantic Products. Call 800-523-5947 for a free cata- log, or visit www.tonercable.com.

Verizon Enhanced Cable Billing Communities Booth #402 Billing & Provisioning Verizon Enhanced 800.882.7950 Over 300 Satisfied Operators Communities is Veri- www.glds.com Lowest Total Cost Solutions zon’s business unit dedicated to serving single- and multifam- FTTH, Voice, Video & Data ily residential, mixed-use and commercial multitenant prop- Digital • VOD • VoIP erties with broadband, video and advanced communications. Data • Hotel PPV Friendly, Expert Support Verizon’s fiber-to-the-premises infrastructure delivers Verizon

Special Summit Guest: Rural Telecommunications Congress Sponsors of Rural TeleCon Broadband for Rural Prosperity

Broadband Properties welcomes the Rural Telecommunications Congress to Summit 2010. RTC has been invited to hold its own event adjacent to the Summit. To become an RTC member or learn more about RTC, visit: www.rtcconference.org/rtc To register for the Summit or the RTC special event, visit: www.bbpmag.com April 26 – 28, 2010 InterContinental Hotel – Dallas, Addison, Texas The Leading Conference on Broadband Technologies and Services

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October 2009 | www.broadbandproperties.com | BROADBAND PROPERTIES | 75 INDEPENDENT TELCOS Fiber Deployments By Independent Telcos As the business case for FTTH continues to improve, independent telcos are building next-generation networks and offering advanced services.

By Masha Zager ■ Broadband Properties

About the List

Since 2005, Broadband Properties has maintained a list of independent telephone companies that deploy fiber to the premises. We’ve published the list several times each year. We also maintain the list online at www.bbpmag.com/search.php to enable you to search, sort and even download this information. The online list also includes most municipal fiber deployers, as well as some cable companies and other FTTP deployers. Although we gather information from as many sources as we can, we know the list is not complete. To add to the list, fill in missing information or correct any errors, please contact [email protected].

he sorry state of rural broadband chor institutions in the areas they serve, Many of the telcos listed here are in has occasioned floods of news arti- they see their mission as keeping rural the middle of long-term fiber upgrades. Tcles over the last six months – and communities viable. After starting with one or two trial de- will inspire floods of federal grant and Many of these small providers see ployments, they commit to build out loan funds over the coming year. Accord- fiber to the home as key to the survival fiber to new developments, to exchanges ing to today’s received wisdom, broad- of their rural communities. At least 418 whose copper plant is depreciated or band is nowhere to be found outside large independent telephone companies have to places where they would like to de- cities and their wealthy suburbs. deployed or are actively planning fiber- liver video services but DSL isn’t up to This view is not entirely unwar- to-the-home networks in the United the job. Many are moving outside their ranted. Large telecom providers invest States, an increase of 31 since BBP last traditional service areas to cherry-pick in those parts of their networks where published this list in March. nearby locations that are underserved. they are most likely to recoup their in- Drivers for FTTH investment by A number of telcos that were early vestments; this imperative leads them to this group of companies include adopters of FTTH have upgraded their disinvest in their rural territories – or, if fiber electronics from BPON to GPON possible, to spin them off entirely. • Technology breakthroughs that have or, less often, have shifted to point-to- Smaller providers, however, follow reduced the cost of deploying fiber in point Ethernet technologies. By deploy- a different playbook. Lacking access to rural areas ing these newer technologies, these tel- more lucrative markets, they seek oppor- • A long-standing commitment to lo- cos demonstrate that they have achieved tunities in places where they have name cal economic development their original goals of “future-proofing” recognition. In addition, many exist only • A desire to provide triple-play ser- their networks: They can use the same because they – or their predecessors – rose vices to residential customers. fiber to offer more-advanced services. to the challenge of serving areas neglected by the former Bell system. Cooperatives, family-owned firms and even publicly About the Author traded companies that have evolved from Masha Zager is the editor of Broadband Properties. You can reach her at masha@ small rural providers identify closely with broadbandproperties.com. their communities. Because they are an-

76 | BROADBAND PROPERTIES | www.broadbandproperties.com | October 2009 INDEPENDENT TELCOS

Justifications for Fiber to the Premises What Is an Independent Telco? Reasons independents have told us they are building fiber networks include the The independent telcos on our list are licensed providers of wireline following: voice services other than Verizon, AT&T and Qwest. They are regulated in the United States as ILECs (incumbent providers) or CLECs (competitive pro- • Old copper plant was failing and viders) or both. The majority are rural providers, many of them cooperatives they didn’t want to replace it with or small family-owned businesses, set up 50 years ago or more to offer tele- more copper that would soon be ob- phone service in regions not covered by the Bell system. A smaller number solete. came into existence after the Telecommunications Act of 1996, some spe- • In new housing developments, they cifically to build fiber-to-the-home networks in new housing developments, found that FTTH was only margin- others to serve businesses or to offer telecommunications alternatives for ally more expensive to install than underserved areas. copper but would be less costly to Today, many companies other than traditional telcos deliver reliable, maintain and have a longer useful interconnected voice service, using either cellular or wireline networks. life. (Recently, many providers have Excluding these companies from our list is somewhat arbitrary, especially told us that FTTH is the less expen- because many traditional telephone companies also offer both wireless ser- sive choice.) vice and wireline VoIP service. Some of these nontraditional providers are • They wanted to offer video and other functionally no different from CLECs. However, telcos still exist as a historical advanced services, and decided that and legal category, and our definition is consistent with industry usage. DSL had too many limitations. To the extent possible, we have excluded from the list telcos whose only Many rural telcos already owned ca- involvement with FTTH is to deliver services over fiber access networks that ble TV plant (they are exempt from they do not own and were not involved in building – for example, networks cable-telephone cross-ownership re- owned by municipalities or housing developers. strictions) and wanted to upgrade their video services without pouring money into obsolete cable networks. the list and others, to propose building new developments in their service areas, • Their service areas were losing jobs FTTH networks. overbuilding towns near their service and population, and they believed fi- areas where they have name recogni- ber would encourage more economic What the Numbers Show tion – or some combination of the three. opportunities. 1. The great majority of independent In most states they must form CLEC • Their service areas were growing telcos building fiber networks are subsidiaries to move outside their tradi- rapidly, and new residents moving incumbent providers or CLEC sub- tional service areas, but they still appear in from metropolitan areas were at- sidiaries of incumbents. in the list as ILECs even if their fiber- tracted to fiber as an amenity. Five of six companies on our list are to-the-home networks are only in their • They saw opportunities to compete ILECs (incumbent carriers dating from CLEC areas. in underserved areas outside their before 1996) that are either replacing old The remaining companies are pure traditional service areas where resi- copper plant with fiber, building fiber to CLECs (competitive carriers) with no dents were unhappy with the available choices for video and/or Inter- net service. FTTH Network Builders by Type Because independent telcos rarely compete with one another, they tend to ILECs and regard one another as colleagues. They their CLEC share experiences and pool information. subsidiaries As information spreads, one success 85% gives rise to another. Over the last several years, with fiber deployment costs falling and the cost of copper rising, more and more independents have been encouraged to try this new technology. This year, the $7.2 billion authorized Pure CLECs by the American Recovery and Rein- 15% vestment Act (ARRA) for broadband networks has encouraged many inde- Independents usually build in their area of incumbency but often expand into neighboring towns pendent telcos, both those already on as CLECs.

October 2009 | www.broadbandproperties.com | BROADBAND PROPERTIES | 77 INDEPENDENT TELCOS traditional geographic base. These com- Technology Used panies seek out promising territories to Note: Some telcos use multiple technologies. overbuild with fiber. A few build hybrid fiber-coax networks in some areas and GPON 276 FTTH networks in others. The proportion of ILECs to CLECs Active Ethernet 53 has remained surprisingly constant over BPON 46 the four years we have tracked telcos’ fiber builds, even though the number EPON/GEPON 35 of companies on the list has increased nearly tenfold. Unknown/Undecided 31 Most of the pure CLECs originally 25 focused on collaborating with housing PON Unspecified developers to build networks in green- RFOG 1 field developments and master-planned communities, but given the shortage of Passive optical networks are far more common than active networks, but active networks continue new housing, some have turned to over- to gain in popularity. Gigabit PON has largely replaced older, slower standards.

The triple play of voice, video and data is alongside their telephone networks. De- ploying fiber to the home allows them the standard offering for independent telcos to merge the two, reducing network management costs while adding high- deploying fiber to the home. Some providers offer definition TV, DVR, video on demand additional services, such as home security. and a wider selection of channels. Beyond the triple play, the most common additional service is security building. A few, such as ComSpan USA tomers in a remote corner of Michigan. monitoring. Gaming, caller ID on TV and Hiawatha Broadband, adopted an Likewise, fiber deployments range from and PC (convergent applications) and overbuilding model from the start. Oth- 150,000 homes passed by SureWest, an business applications are also being of- ers focus on serving small and midsized FTTH pioneer, to pilot projects with fered by some telcos. businesses. fewer than a hundred homes passed. Announcements of FTTH deploy- Although the typical independent 2. ments often mention telcos’ desire to telco serves a few thousand customers in Most providers plan to deliver the migrate to all-IP networks. VoIP is one or two rural counties, the compa- triple play of voice, data and video now often used in place of traditional nies on this list range from corporate gi- services. switched telephony, just as IPTV is dis- ants such as CenturyLink, which serves Delivering advanced video services placing RF video. 7.5 million customers in 33 states, to is usually a motivating factor for a fi- tiny cooperatives such as Allband Com- ber buildout. Many independent telcos 3. Companies are choosing more-ad- munications, with fewer than 200 cus- formerly managed cable TV networks vanced FTTP technology options. BBP’s first published list included Services Planned or Delivered mainly BPON systems, a few EPON systems and one active Ethernet system. Voice, Data, Today, although passive networking re- Video mains by far the most frequent choice, 61% Voice, Data at least 53 independent telcos use active 10% Ethernet for one or more fiber projects. Gigabit passive networks, both GPON and GEPON, have become Triple Play much more common during the last sev- Plus Additional eral years. GPON is the PON of choice Services for this group – three-quarters of com- Other Unknown 4% panies with passive optical networks, in- 5% 20% cluding almost all new additions to the Video is usually necessary to recoup the cost of an FTTH network. The triple play continues to be the list, have adopted the GPON standard. standard offering. The migration from BPON to GPON

78 | BROADBAND PROPERTIES | www.broadbandproperties.com | October 2009 INDEPENDENT TELCOS Auto-sensing ONTs make upgrading to GPON rienced a series of mergers and acquisi- tions over the last several years. Calix and active Ethernet easier. Telcos can acquired OSI; Ericsson acquired Entri- sphere; Enablence directly or indirectly change the CO equipment without replacing acquired Wave7 Optics, Pannaway and equipment at the customer premises. TelStrat; and Occam acquired Tera- wave’s FTTH business. As a result, inde- and active Ethernet has been speeded by ics from more than one vendor. For the pendent telcos may have fewer choices, the availability of Calix’s auto-sensing most part, telcos that deal with multiple but they probably have better choices; these consolidations have created com- optical network terminal, which allows vendors are using different systems in panies that can provide a wider range telcos to upgrade central-office equip- different geographic areas or for different ment without having to replace the cus- of access technologies and service wider types of customers, or replace one ven- tomer-premises equipment. geographic markets. dor’s equipment with another; we haven’t The number of telcos using mul- It’s not clear that telcos’ choices are tiple types of technologies, although seen significant instances of electronics fewer; vendors that traditionally catered still small, continues to grow. Our list vendors’ partnering to build networks. to Tier 1 carriers are now turning their shows at least 12 percent with multiple Like most maturing industries, the attention to smaller providers. One of technologies, most often BPON and FTTH equipment industry has expe- those vendors, Tellabs, a major supplier GPON. Many companies find staying with the technology (and vendor) they have already used successfully to be sim- FTTH Network Builders pler; others find that their needs change over time, that newer technologies allow By Vendor them to upgrade their services or that requirements vary from one part of their service area to another. Calix 276 Technical factors also encourage the Enablence 45 use of multiple access technologies. Re- cently released access platforms, such Occam Networks 36 as Enablence’s Trident, have been built to accommodate different technologies Unknown/Undecided 33 from the same chassis. Motorola 14

4. Many vendors are competing suc- Alloptic 13 cessfully in the independent telco market. Alcatel-Lucent 10

When independent telcos first began Allied Telesis 9 deploying fiber, nearly all of them used FTTH electronics from Optical Solu- ADTRAN 8 tions. After Calix bought OSI, it main- Zhone 6 tained OSI’s substantial lead in this market. About two-thirds of the telcos Ericsson 4 on our list use at least some Calix equipment – a proportion that has remained Hitachi 3 relatively stable recently. Tellabs 3 However, as the independent telco market grows and as equipment becomes PacketFront 1 more standardized and interoperable, other vendors have also become success- Telco Systems 1 ful at competing in this market. At least Ciena 1 36 percent of these telcos, and probably more, have bought equipment from elec- 050 100 150 200 250 300 tronics vendors other than Calix. Calix remains the leading electronics vendor in this market, though several other vendors have About 12 percent of the telcos on substantial numbers of customers. Enablence’s recent acquisition of Pannaway makes it a larger the list have purchased FTTH electron- force in this market.

October 2009 | www.broadbandproperties.com | BROADBAND PROPERTIES | 79 INDEPENDENT TELCOS After deciding not to supply its GPON easier. “It’s a case of technology driving economic change,” Berniklau says. products to Verizon, Tellabs began marketing With falling equipment costs, rapidly developing technology, new re- them to independent telcos. spect from vendors and the availability of broadband stimulus funds, the time of BPON equipment to Verizon, decided stimulus funds weren’t the only reason seems right for FTTH to become the not to sell GPON equipment to Verizon; for Tellabs to court the independents; technology of choice for the majority of instead, Tellabs formed a partnership he believes their business cases for fiber smaller telcos. The next time we publish with integrator AFL to market its GPON are stronger than they were in the past. this list, you can expect it to be a great product line to independent telcos. The arrival of indoor ONTs – often deal longer. BBP According to Ken Berniklau, Tel- touted as a breakthrough for multifam- labs’ product manager for broadband ily housing – will provide a major cost products, Tellabs was encouraged to savings for small rural telcos, according Telcos Building FTTP enter this market because so many in- to Berniklau, and new connectorized Networks, by State dependent telcos were planning to apply cables that eliminate splicing will also BBP’s count of independent telco for broadband stimulus funds to build significantly lower installation costs – FTTP networks by state again shows FTTH networks. But Berniklau says and make finding qualified installers Iowa in the lead – not surprising, as Iowa has close to 250 rural telcos, CAllout goes here. CAllout goes here. CAllout far more than any other state. But Minnesota and Texas are close goes here. CAllout goes here. CAllout goes here. behind, and we’ve documented current or pending builds by CAllout goes here. CAllout goes here. CAllout goes independent telcos in 47 states, the District of Columbia and Puerto Rico. here. CAllout goes here. Only Massachusetts, Delaware and Rhode Island are missing from the list – and they are at the epicenter of Broadband Verizon’s FiOS build. Properties Magazine State telcos State telcos Congratulates IA 38 MO 9 MN 28 UT 7 TX 26 PA 7 WI 20 AR 7 KS 20 KY 7 GA 19 WA 6 OH 16 CO 6 For becoming a Research Sponsor at the OR 16 2010 Broadband Properties Summit. TN 6 NY 14 LA 4 For more information on RVA, visit www.rvallc.com. ND 12 NM 4 NC 12 You are cordially invited to come see RVA at the upcoming WV 4 MI 12 WY 4 MT 12 MS 4 IN 12 AK 3 ID 11 ME 3 SC 11 SD 11 NV 3 April 26 – 28, 2010 NE 11 VT 3 InterContinental Hotel – Dallas AL 10 HI 2 Addison, Texas IL 10 MD 2 The Leading Conference on CA 10 NH 2 Broadband Technologies and Services AZ 9 DC 1 To Exhibit or Sponsor, contact: Irene Prescott at FL 9 PR 1 [email protected], or call 316-733-9122. VA 9 NJ 1

For other inquiries, call 877-588-1649, or visit www.bbpmag.com. OK 9 CT 1

80 | BROADBAND PROPERTIES | www.broadbandproperties.com | October 2009 INDEPENDENT TELCOS

The following table shows independent telcos that have constructed FTTH networks or are actively planning them. Many of the companies identified as ILECs are installing FTTH through their CLEC subsidiaries. We’ve made every effort to update the names of vendors and deployers to reflect mergers and rebrandings. If your company is missing, or if the information is incomplete, send corrections to [email protected]. We update this list daily on www. broadbandproperties.com/search.php

Provider States Vendor - FTTH Date Greenfield/ technology Services rUS iLEC/ electronics overbuild/ Loan CLEC replace

3 Rivers Communications MT Calix, Enablence, 2006 R PON, Active Triple Play ILEC Occam Networks Ethernet Adak Telephone AK Calix 2006 R GPON Triple Play ILEC Adams Telephone Cooperative IL Calix 2006 R GPON Triple Play ILEC Albany Mutual Telephone Association MN Enablence 2006 R Active Ethernet Triple Play ILEC Alenco Communications TX Calix 2002 O, G PON Triple Play ILEC (Pathway Com-Tel) All West Communications UT Calix 2004 O GPON Triple Play ILEC Allband Communications Cooperative MI Calix 2005 G GPON Triple Play, Security 3 ILEC Allendale Communications MI Enablence 2005 G Active Ethernet Triple Play ILEC Alliance Communications SD Calix 2006 R GPON Voice, Data ILEC Allo Communications NE 2005 O Active Ethernet Voice, Data, 3 CLEC Business Services Alma Communications MO Enablence, Calix 2006 R GPON Triple Play ILEC Alpine Communications IA Occam Networks 2007 R Active Ethernet Voice, Data ILEC Arvig Communications (East Otter Tail) MN Calix 1995 R, G GPON Triple Play ILEC Astound Broadband CA Alloptic 2004 R EPON Voice, Data CLEC ATC Communications ID Calix 2008 GPON Triple Play ILEC ATMC NC Motorola 2005 G BPON Triple Play ILEC Aztech Cable AZ Calix O GPON Triple Play CLEC Baldwin Telecom WI Calix 2002 G GPON Triple Play 3 ILEC Ballard Telephone KY Occam Networks 2008 R GPON Triple Play ILEC Baraga Telephone MI Calix GPON Triple Play ILEC Barry County Telephone MI Calix GPON ILEC Bascom Mutual Telephone Company OH Calix 2003 O BPON Triple Play ILEC BEK Communications ND Calix 2004 R GPON Voice, Data ILEC Ben Lomand Telephone Co-op TN Occam Networks 2006 R Active Ethernet Triple Play ILEC Benkelman Telephone Company NE Calix 2009 GPON ILEC (Wauneta Telephone, BW Telcom) Benton Cooperative Telephone MN Calix, Alloptic 2005 G GPON, GEPON Triple Play ILEC Company (Milaca Local Link) Big Bend Telephone TX Calix, Enablence 2005 R GPON Triple Play ILEC Blair Telephone (HunTel) NE Calix GPON ILEC Bloomer Telephone WI Calix 2007 R GPON Triple Play 3 ILEC Bloomingdale Communications MI Calix 2006 O GPON Video, Voice, Data ILEC Blue Valley Tele-Communications KS Tellabs 2006 R GPON Triple Play ILEC Border to Border Communications TX Calix, Alloptic 2004 R BPON, GEPON Triple Play 3 ILEC Brantley Telephone GA Calix 2007 R GPON Triple Play ILEC Broadband Associates CA O CLEC BroadStar NC 2005 G Triple Play, Security CLEC BTC (Western Iowa Networks) IA 2008 Triple Play 3 ILEC BTC Broadband OK Calix 2005 G, R GPON Triple Play ILEC (Bixby Telephone Company)

October 2009 | www.broadbandproperties.com | BROADBAND PROPERTIES | 81 INDEPENDENT TELCOS

Provider States Vendor - FTTH Date Greenfield/ technology Services rUS iLEC/ electronics overbuild/ Loan CLEC replace

Buckeye Telesystem OH Calix 2006 O GPON Voice, Data CLEC Buckland Telephone Company OH Calix 2005 R GPON Triple Play ILEC Buggs Island Telephone Cooperative VA Calix 2009 GPON ILEC Bulloch Telephone Cooperative GA Motorola 2005 R PON Triple Play ILEC Calaveras Telephone CA Calix 2006 G GPON Triple Play 3 ILEC Cal-Ore Communications OR Calix 2005 G GPON Triple Play ILEC Cambridge Telephone ID Calix 2005 R GPON Triple Play ILEC Cameron Communications LA Calix 2004 R GPON Triple Play ILEC Canby Telcom OR Calix 2006 G, R GPON Triple Play ILEC Cap Rock Telephone Cooperative TX Calix 2005 G GPON Triple Play ILEC Cascade Telephone IA Calix GPON ILEC Centennial de Puerto Rico PR Occam Networks 2007 R Active Ethernet Voice, Data CLEC Central Texas Technologies TX Alloptic 2002 G EPON Triple Play CLEC CenturyLink AL, CO, MI, Calix G GPON Triple Play ILEC MO, WI, Others Champaign Telephone OH Calix GPON ILEC Chariton Valley Telecom Corporation MO Enablence 2003 R, O PON Triple Play ILEC Chesnee Telephone SC Calix G GPON Triple Play ILEC Cheyenne River Sioux Tribe Telephone SD Calix GPON ILEC Chickamauga Telephone GA Calix 2008 GPON ILEC ChoiceTEL Communications WI 2008 O Triple Play CLEC Christensen Communications MN Calix 2008 R BPON, GPON Triple Play ILEC Cimarron Telephone OK Calix 2008 GPON ILEC Cincinnati Bell OH, KY Alcatel-Lucent, GPON Triple Play ILEC Motorola Cinergy MetroNet IN Alcatel-Lucent 2005 O BPON Triple Play 3 CLEC Citizens Mutual IA Calix 2006 R GPON Triple Play ILEC Citizens Telephone Company GA Alloptic, Cisco 2008 R GEPON, GPON Triple Play ILEC Citizens Telephone Company PA Calix 2005 R PON Triple Play ILEC of Kecksburg Citizens Telephone Coop WI Calix GPON ILEC Citizens Telephone Cooperative VA Calix 2004 R GPON Triple Play ILEC Clarence Telephone IA Calix BPON, GPON ILEC Clarks Telecommunications (Northeast NE Occam Networks 2009 R Active Ethernet Triple Play ILEC Nebraska Telephone Company) Clear Creek Telephone & TeleVision OR Calix 2009 GPON Triple Play ILEC Clear Lake Telephone IA Calix 2008 R GPON Triple Play ILEC Clearwave Communications IL Calix GPON CLEC Colo Telephone Company IA Calix 2005 R GPON Triple Play 3 ILEC Columbus Telephone Company KS Enablence 2004 R EPON Triple Play ILEC Communications 1 Network IA Calix 2008 GPON ILEC Comporium Communications SC Enablence 2004 G EPON, GPON Triple Play, Converged Services ILEC ComSouth Telecommunications GA Calix, Motorola 2005 R, G PON Triple Play ILEC ComSpan USA OR Hitachi 2005 O GPON Triple Play CLEC Connections Etc. (Sherburne County MN Calix 2008 GPON ILEC Rural Telephone Co./Iowa Telecom) Consolidated Communications Inc. IL, TX Zhone Technologies 2007 GPON Triple Play ILEC Consolidated Telcom ND Calix 2006 R GPON Triple Play ILEC Consolidated Telecommunications MN Calix 2005 O GPON Triple Play 3 ILEC Company

82 | BROADBAND PROPERTIES | www.broadbandproperties.com | October 2009 INDEPENDENT TELCOS

Provider States Vendor - FTTH Date Greenfield/ technology Services rUS iLEC/ electronics overbuild/ Loan CLEC replace

Conxxus (Illicom Telecommunications) IL Enablence 2001 O EPON Triple Play CLEC Cooperative Telephone Exchange IA Occam Networks 2006 R Active Ethernet Triple Play 3 ILEC Corn Belt Telephone IA 2008 R Triple Play ILEC CP-Tel LA Calix 2004 G BPON Triple Play ILEC Craigville Telephone Company IN Calix 2006 O GPON Triple Play ILEC Cross Communications OK Calix GPON Triple Play ILEC CSS Communications WA Alloptic 2003 R EPON Triple Play CLEC CT Communications NC Enablence 2005 G EPON Voice, Data ILEC Custer Telephone Cooperative ID Calix 2006 R GPON Triple Play ILEC D&E Communications PA Calix 2008 GPON ILEC D&P Communications MI Motorola 2008 GPON Triple Play ILEC Dakota Central Telecom ND Calix 2002 R, O GPON Triple Play 3 ILEC Darien Telephone GA Calix GPON ILEC Daystarr Communications MI Calix 2008 O GPON CLEC Delhi Communications NY Enablence 2009 R Active Ethernet Triple Play ILEC DFT Communications NY Calix GPON ILEC Dickey Rural Networks ND Calix 2004 R GPON Triple Play ILEC Diller Telephone Company NE ADTRAN 2009 R GPON Data, Voice ILEC Direct Communications OR, WA, Calix G BPON, GPON Voice, Data ILEC ID, UT Dobson Telephone OK Calix GPON ILEC Dumont Telephone Company IA Hitachi 2006 R GPON Triple Play ILEC EasyTel Communications OK Calix 2005 O PON Triple Play CLEC EATEL LA Alcatel-Lucent, 2004 R, G BPON, GPON Triple Play, ILEC Calix Converged Services Elkhart Telephone (Epic Touch) KS Enablence, Calix 2005 R EPON, GPON Triple Play ILEC Emily Cooperative Telephone Company MN 2007 Triple Play ILEC Endeavor Communications IN Calix 2006 R GPON Triple Play ILEC Enhanced Telecommunications IN Calix 2004 R GPON Triple Play ILEC Corporation ENMR-Plateau Telecommunications NM Calix, Occam 2003 R PON Voice, Data ILEC Networks En-Touch Systems TX Enablence 2006 G EPON Triple Play, Security CLEC Etex Telephone Cooperative TX Calix, Enablence 2002 O Active Ethernet, GPON Voice, Data ILEC F&B Communications IA Calix BPON, GPON Triple Play ILEC FairPoint Communications WA, Others Occam Networks, G GPON ILEC Calix Farmers and Merchants Mutual IA Calix 2007 BPON, GPON Triple Play ILEC Telephone Company Farmers Mutual ID Calix R BPON, GPON Triple Play ILEC Farmers Mutual MN Calix GPON Triple Play ILEC Farmers Telecommunications AL Occam Networks 2007 R, G Active Ethernet Voice, Data ILEC Cooperative Farmers Telephone Cooperative SC Occam Networks 2006 G, R Active Ethernet, Triple Play ILEC GPON FEC Communications TX Calix 2006 G PON Triple Play CLEC (Connextions Telecom) Federated Telephone MN Calix 1996 O, R GPON Triple Play ILEC Fenton Cooperative Telephone IA Calix 2009 GPON Voice, Data ILEC Company FiberNet WV, OH Calix 2007 O BPON, GPON Voice, Data, CLEC Videoconferencing

October 2009 | www.broadbandproperties.com | BROADBAND PROPERTIES | 83 INDEPENDENT TELCOS

Provider States Vendor - FTTH Date Greenfield/ technology Services rUS iLEC/ electronics overbuild/ Loan CLEC replace

Fibertech Networks NY Calix, Ericsson 2006 BPON, GPON Data, Business CLEC Services Fidelity Telephone MO Calix BPON ILEC Filer Mutual ID Calix GPON ILEC Foothills Rural Telephone Coop KY Alcatel-Lucent 2004 R, G BPON Triple Play 3 ILEC Fort Jennings Telephone Company OH Calix 2004 O, R GPON Triple Play ILEC Fort Mojave Telecommunications AZ Calix 2008 R, G GPON Data, Voice 3 ILEC Frontier Communications Many Calix G BPON, GPON Data, Voice ILEC FTTH Communications MN Calix 2002 G GPON Triple Play CLEC Ganado Telephone TX Occam Networks 2008 R Active Ethernet Voice, Data ILEC Garden Valley Telephone MN Calix 2005 BPON, GPON Triple Play ILEC Gardonville Cooperative Telephone MN 2006 R ILEC Association General Communications AK Calix R GPON Voice, Data CLEC Gervais Telephone OR Calix 2001 O GPON Triple Play ILEC Gila River Telecommunications AZ Calix BPON, GPON ILEC Glenwood Telephone NE Calix 2007 R BPON, GPON Triple Play ILEC Global Valley Networks CA 2005 G PON Voice, Data ILEC Golden Belt Telephone Association KS Occam Networks 2008 R Active Ethernet Triple Play ILEC Golden West Telephone Company SD Calix 2004 R GPON Voice, Data ILEC Goldfield Telephone Company IA 2007 O, R Triple Play 3 ILEC Gorham Telephone KS Calix 2007 R GPON Triple Play ILEC Grand Mound Cooperative IA Calix 2005 O, R PON Triple Play 3 ILEC Telephone Association Grand River Mutual Telephone Corp. MO, IA 2009 R ILEC Grande Communications TX Ericsson 2005 O PON Triple Play CLEC Granite State Telephone (GSInet) NH 2007 G, R Data, Voice ILEC Great Plains Communications NE Enablence 2007 G, R GPON Voice, Data ILEC Greenfield Communications AZ, CA Calix, Alloptic 2005 G GPON, GEPON Triple Play CLEC Gridley Telephone IL Calix 2006 BPON Triple Play ILEC GTel Teleconnections NY Calix 2008 R GPON Triple Play, ILEC (Germantown Telephone) Videoconferencing Gulfpines Communications MS Calix GPON ILEC GVTC Communications TX Calix 2004 G, R, O GPON Triple Play, Security ILEC H&B Communications KS Calix GPON ILEC Hancock Telecom IN Enablence 2002 G EPON Triple Play ILEC Hargray Communications SC Alloptic 2004 G EPON Triple Play ILEC Harrisonville Telephone IL Calix 2007 G BPON, GPON Triple Play ILEC Hawaiian Telecom HI Alcatel-Lucent 2006 G, R GPON Triple Play ILEC Hayneville Telephone AL Enablence 2008 O GPON Triple Play 3 ILEC Heart of Iowa Communications IA Calix 2005 R BPON, GPON Triple Play ILEC Cooperative Hiawatha Broadband MN Calix 2005 O GPON Triple Play CLEC Hickory Tech (Enventis) MN, WI Calix, Motorola 2002 BPON, GPON Triple Play ILEC Hickory Telephone PA Zhone Technologies 2009 R GPON Triple Play ILEC Highland Telephone Cooperative TN Calix 2008 GPON Triple Play ILEC Highland Telephone Cooperative VA Enablence 2007 GPON Triple Play ILEC Hill Country Telephone Cooperative TX Occam Networks 2007 R Active Ethernet Triple Play, Security ILEC Hinton Telephone OK Calix 2002 BPON ILEC

84 | BROADBAND PROPERTIES | www.broadbandproperties.com | October 2009 INDEPENDENT TELCOS

Provider States Vendor - FTTH Date Greenfield/ technology Services rUS iLEC/ electronics overbuild/ Loan CLEC replace

Home Telephone SC Calix 2001 G GPON Triple Play ILEC Home Town Telephone FL Calix 2004 G GPON Triple Play, Security CLEC (Home Town Cable Plus) Hood Canal Telephone Company WA Motorola 2004 R PON Triple Play 3 ILEC Horizon Chillicothe Telephone OH ADTRAN, Calix 2007 GPON Triple Play 3 ILEC Horry Telephone Coop SC Motorola, Calix 2004 G PON, GPON Triple Play ILEC Hotwire Communications FL, VA, NJ, Calix, Motorola G, O GPON Triple Play, Home CLEC NY, PA, GA, Automation SC, NC, MD Huxley Telephone IA Calix 2001 O, R PON Triple Play ILEC iCornerstone GA Alloptic 2004 G EPON Triple Play CLEC IdeaOne Telecom Group ND Calix 2002 O GPON Triple Play, CLEC Business Services Indiantown Telephone System FL Calix 2006 G PON Triple Play 3 ILEC (ITS Telecom) InterBel Telephone Cooperative MT Triple Play ILEC Interstate Telecommunications SD Calix 2006 O, R BPON, GPON, Triple Play 3 ILEC Cooperative (SS Telecom) Active Ethernet Jaguar Communications MN Calix 2006 O GPON Triple Play 3 CLEC Johnson Telephone Company MN Calix 2008 GPON Triple Play ILEC Kalida Telephone OH Calix GPON ILEC Kanokla Telephone KS Calix GPON ILEC Kaplan Telephone LA Calix 2005 R GPON Triple Play ILEC Kerman Telephone Company CA ILEC KMTelecom MN 2008 R ILEC Knology AL, GA, TN, Ericsson, 2005 G, R, O EPON, GPON Triple Play, CLEC FL, SC Enablence, Calix Business Services LaHarpe Telephone KS Calix 2006 R GPON Triple Play ILEC Laurel Highland Telephone Company PA Calix 2003 R GPON Triple Play ILEC Lavalle Telephone Cooperative WI Occam Networks 2006 G Active Ethernet Triple Play 3 ILEC Lehigh Valley Cooperative IA Calix GPON ILEC Telephone Association Lemonweir Valley Telephone WI Calix 2008 R GPON Triple Play ILEC Lexcom NC Alloptic, Enablence 2007 R RFOG, GEPON Triple Play ILEC Liberty Communications IA Calix, 2008 R GPON Triple Play ILEC Lightnex Communications MT Calix 2002 G BPON Triple Play CLEC (formerly Vivid) Ligonier Telephone IN Calix 2008 R GPON Triple Play ILEC Lincoln County Telephone System NV Alcatel-Lucent 2008 G, R GPON Security, Triple Play ILEC Lincoln Telephone MT Calix GPON ILEC LISCO IA Occam Networks 2005 O Active Ethernet Triple Play 3 CLEC Litestream Technologies FL Calix 2002 G PON Triple Play, Security CLEC Long Island Fiber Exchange NY 2007 O Active Ethernet Business Services, CLEC Voice, Data Long Lines NE Enablence 2007 O GEPON Triple Play ILEC Lonsdale Telephone MN Calix GPON ILEC Loretel Systems MN Calix 2009 GPON Triple Play ILEC Lost Nation-Elwood Telephone IA Calix GPON ILEC Mabel Telephone Cooperative MN Enablence 2006 R PON Triple Play ILEC Madison Telephone KS Calix 2009 GPON ILEC Mahaska Communications Group IA Calix 2004 O GPON Triple Play CLEC Manti Tele Communication Company UT Enablence 2008 R Active Ethernet Triple Play ILEC

October 2009 | www.broadbandproperties.com | BROADBAND PROPERTIES | 85 INDEPENDENT TELCOS

Provider States Vendor - FTTH Date Greenfield/ technology Services rUS iLEC/ electronics overbuild/ Loan CLEC replace

Marquette-Adams Telephone WI Occam Networks 2008 R GPON Triple Play ILEC Cooperative Matanuska Telephone Association AK Calix 2007 G, R BPON, GPON Triple Play ILEC McClure Telephone Company OH Enablence 2006 R GPON Triple Play 3 ILEC McCook Cooperative SD Calix GPON ILEC McDonough Telephone Cooperative IL Calix 2007 R GPON Triple Play ILEC Medicine Park Telephone Company OK 2008 G ILEC Melrose Telephone Company MN 2009 R Triple Play ILEC (diversiCOM) Metrostat Communications NC Alloptic 2006 O GEPON Voice, Data CLEC Middleburgh Telephone Company NY Calix, Motorola 2008 R GPON Triple Play ILEC Mid-Plains Rural Telephone TX Calix 2008 R GPON Data, Voice ILEC Cooperative Mid-Rivers Communications MT R Triple Play ILEC Midstate Communications SD Occam Networks 2008 R Active Ethernet Triple Play 3 ILEC Midstate Telephone ND Calix GPON ILEC Midvale Telephone AZ Calix 2006 G, O BPON, GPON Data, Voice ILEC Minburn Telephone IA Calix R BPON, GPON Triple Play ILEC Minford Telephone Company OH Calix 2009 GPON ILEC Minnesota Valley Telephone MN Calix GPON ILEC Missouri Telephone MO Allied Telesis 2006 G Active Ethernet Triple Play ILEC MoKan Dial KS, MO Calix BPON ILEC Molalla Communications Company OR Calix 2004 G GPON Voice, Data ILEC Momentum AL Alcatel-Lucent 2007 G GPON Triple Play, Security CLEC Monitor Cooperative Telephone OR 2009 R Data, Voice ILEC Company Monon Telephone Company IN Calix 2009 GPON ILEC Montana Opticom MT Calix 2005 G GPON Triple Play CLEC Mosaic Telecom WI Calix 2007 R GPON Triple Play ILEC Mosinee Telephone WI Calix GPON ILEC Moundville Telephone Company AL 2008 G Voice, Data ILEC Mountain View Telephone AR Calix GPON Triple Play ILEC (Yelcot Telephone) MTCO Communications IL Calix 2008 GPON Data, Voice ILEC Mutual Telephone Company KS Calix 2008 R GPON ILEC Nehalem Telecommunications OR Calix BPON, GPON ILEC Nemont Telephone Cooperative MT Calix 2006 R GPON ILEC Nevada Comstock Communications NV 2008 G Voice, Data CLEC New Hope Telephone Cooperative AL Calix, 2006 R PON Triple Play 3 ILEC Occam Networks New Knoxville Telephone Company OH Enablence 2004 R EPON Triple Play ILEC Niagara Telephone Company WI Calix 2008 GPON ILEC Nortex Communications TX Calix 2007 R GPON Triple Play 3 ILEC North Central Telephone Cooperative TN Occam Networks 2007 R Active Ethernet Triple Play ILEC North Dakota Telephone Company ND Allied Telesis 2005 R Active Ethernet Triple Play ILEC North Penn Telephone Company PA Calix 2008 GPON Triple Play ILEC North State Communications NC Calix 2005 G BPON, GPON Voice, Data ILEC Northeast Florida Telephone Company FL Calix 2005 G GPON Voice, Data ILEC Northeast Missouri Rural Telephone MO Occam Networks 2009 R Active Ethernet Triple Play ILEC Northern Arkansas Telephone AR Occam Networks 2009 R Active Ethernet Triple Play ILEC Company (NATCO)

86 | BROADBAND PROPERTIES | www.broadbandproperties.com | October 2009 INDEPENDENT TELCOS

Provider States Vendor - FTTH Date Greenfield/ technology Services rUS iLEC/ electronics overbuild/ Loan CLEC replace

Northern Telephone Cooperative MT Calix 2008 R GPON ILEC North-State Telephone Company OR Calix R GPON Data, Voice ILEC Northwest Communications ND Calix 2008 R GPON Triple Play ILEC Cooperative Nsight WI Enablence 2003 G Active Ethernet Triple Play ILEC NTELOS VA Alcatel-Lucent, 2006 R GPON Triple Play, ILEC Tellabs, Ciena, Converged Services ADTRAN Omnilec IL Calix BPON CLEC Openband VA, MD, DC Calix 2005 O GPON Triple Play, Security CLEC Optimum Lightpath CT, NY Cisco Active Ethernet Business Services, CLEC Triple Play Oregon Telephone OR Calix 2006 R GPON ILEC Orlando Telephone Company FL Enablence 2007 O GEPON Triple Play CLEC Oxford Networks ME Calix 2001 O, R GPON Triple Play ILEC Panora Cooperative Telephone IA Calix 2002 O, R GPON Triple Play ILEC Association (Guthrie Telecommunications) Parker FiberNet GA Occam Networks, 2006 R GPON Voice, Data CLEC Calix Paul Bunyan Rural Telephone MN Calix, Allied Telesis 2004 O, R GPON, EPON, Triple Play 3 ILEC Cooperative Active Ethernet PAXIO CA PacketFront 2004 G, O Active Ethernet Voice, Data CLEC PBT Telecom SC Motorola 2005 G GPON, BPON Triple Play ILEC Pembroke Telephone Company GA Calix, ADTRAN 2004 G, R GPON Triple Play 3 ILEC Pembroke Telephone Cooperative VA Calix 2008 GPON ILEC Penasco Valley Telecommunications NM Calix 2008 GPON Triple Play ILEC Peoples Rural Telephone Cooperative KY Occam Networks 2008 R GPON Triple Play ILEC Peoples Telephone Cooperative TX ADTRAN 2009 R GPON Voice ILEC Perry-Spencer Rural Telephone IN Enablence 2009 R GPON Triple Play ILEC Cooperative (PSC) Pine Drive Telephone Company CO Calix 2008 GPON Triple Play ILEC Pine Tree Networks ME Calix BPON ILEC Pineland Telephone Cooperative GA Occam Networks 2006 R Active Ethernet Triple Play ILEC Pinnacle Communications AR Calix 2005 R GPON Triple Play ILEC Pioneer Communications KS Calix 2009 GPON Triple Play ILEC Pioneer Telephone Cooperative OR Calix GPON ILEC Pioneer Telephone Cooperative OK Calix 2008 GPON ILEC Plainview Telephone Company NE Calix 2009 R GPON Data, Voice ILEC (Nyecom) Plant Telephone GA Calix BPON ILEC Planters Telephone Company GA Calix 2006 G GPON Triple Play ILEC Poka Lambro Telephone Company TX Calix 2005 O GPON Voice, Data ILEC Pottawatomie Telephone Company OK Calix 2009 GPON Triple Play ILEC Prairie Grove Telephone Company AR Occam Networks 2007 G Active Ethernet Voice, Data ILEC Premier Communications IA Calix GPON ILEC Prime Time Communications CO Calix, Alcatel-Lucent, 2005 G GPON, EPON Triple Play CLEC (Falcon Broadband) Enablence, Hitachi PrimeLink (Champlain Telephone NY Calix, Alloptic 2002 O GEPON, GPON Triple Play ILEC Company) Project Mutual Telephone Co-op ID Calix 2005 O, G GPON Triple Play ILEC Public Service Telephone Company GA Calix 2005 G GPON Triple Play ILEC

October 2009 | www.broadbandproperties.com | BROADBAND PROPERTIES | 87 INDEPENDENT TELCOS

Provider States Vendor - FTTH Date Greenfield/ technology Services rUS iLEC/ electronics overbuild/ Loan CLEC replace

Rainbow Telephone Cooperative KS Calix 2008 GPON Triple Play ILEC Association Randolph Telephone NC Calix 2005 G GPON Triple Play ILEC Range Telephone Cooperative MT WY Calix 2008 O GPON Triple Play ILEC (Advanced Communications Technology, Dubois Telephone Exchange) Readlyn Telephone Company IA Calix 2008 R GPON Triple Play ILEC Red River Telephone ND Calix 2005 R GPON Voice, Data ILEC Reliance Connects (Rio Virgin NV Calix 2008 GPON Triple Play ILEC Telephone, Cascade Utilities) Reservation Telephone Cooperative ND Calix 2007 R GPON Triple Play ILEC Rice Belt Telephone AR ADTRAN 2009 GPON Triple Play ILEC Richland-Grant Telephone Cooperative WI Occam Networks 2006 G Active Ethernet Triple Play 3 ILEC Ridgeville Telephone Company OH Enablence 2006 O GePON Triple Play ILEC Ringgold Telephone GA Enablence, Calix 2004 G EPON, GPON Triple Play ILEC Ritter Communications AR Enablence 2006 G, O Active Ethernet Voice, Data ILEC River Valley Telephone Cooperative IA Calix 2008 GPON Triple Play ILEC Roberts County Telephone Cooperative SD 2004 Triple Play 3 ILEC Association (RC Communications) Rochester Telephone Company IN Enablence 2002 R PON Triple Play ILEC Rockwell Cooperative Telephone IA Enablence 2007 R GPON Triple Play ILEC Association Ronan Telephone MT Calix BPON ILEC Royal Telephone Company IA Calix 2005 R GPON Triple Play ILEC RT Communications WY Enablence, Calix 2006 R GPON Voice, Data ILEC RTC Communications IN Calix 2005 R GPON Triple Play ILEC Runestone Telephone Association MN Calix 2007 R GPON Triple Play ILEC Rural Telephone (Nex-Tech) KS Calix, Occam 2001 O, R Active Ethernet, Triple Play 3 ILEC Networks GPON Rye Telephone Company CO Calix 2002 R GPON Triple Play ILEC S&T Telephone Cooperative KS Calix 2008 R GPON Triple Play ILEC Saddleback Communications AZ Calix 2008 GPON ILEC San Carlos Apache Telecom AZ Calix GPON ILEC San Isabel Telecom CO Calix 2002 G PON Triple Play CLEC Sandwich Isles Telecom HI Calix GPON ILEC Santa Rosa Telephone Cooperative TX Calix 2005 O GPON Triple Play ILEC Santel Communications SD Enablence 2005 O EPON Triple Play 3 ILEC Scio Mutual Telephone Association OR Calix 2004 R GPON Triple Play ILEC Scott County Telephone Coop VA Enablence 2004 R EPON Triple Play 3 ILEC SCTelcom (South Central Telephone) KS Calix 2002 R GPON, Active Voice, Data ILEC Ethernet Sebastian CA Occam Networks 2009 G Triple Play ILEC Shenandoah Telecommunications VA, WV Enablence, Motorola 2006 G EPON Triple Play, Security ILEC Sherwood Mutual Telephone OH Calix R GPON Triple Play ILEC Association Silver Star Communications WY Calix 2005 G GPON Triple Play ILEC Siren Telephone WI Allied Telesis, 2008 R Active Ethernet Triple Play ILEC Siskiyou Telephone CA R ILEC Skyline Membership Corporation NC Allied Telesis, Calix 2004 R PON Triple Play ILEC Sledge Telephone Company MS Occam Networks 2009 R Active Ethernet Data, Voice ILEC Smart City FL Calix G BPON, GPON Triple Play ILEC

88 | BROADBAND PROPERTIES | www.broadbandproperties.com | October 2009 INDEPENDENT TELCOS

Provider States Vendor - FTTH Date Greenfield/ technology Services rUS iLEC/ electronics overbuild/ Loan CLEC replace

Smithville IN Calix 2008 R GPON Triple Play 3 ILEC Solarus WI Calix GPON Triple Play ILEC South Central Communications UT Calix 2002 G GPON Voice, Data ILEC South Central Rural Telephone KY ADTRAN 2009 R GPON Triple Play ILEC Cooperative South Plains Telephone Cooperative TX Calix G GPON ILEC South Slope Cooperative IA Calix R GPON Triple Play ILEC Communications Southern Montana Telephone Company MT 2009 R Data, Voice 3 ILEC Southwest Michigan Communications MI Calix O BPON Triple Play CLEC Spring Grove Communications MN Calix 2007 R GPON Triple Play ILEC Spring Valley Telephone WI 2009 R Triple Play ILEC Spruce Knob Seneca Rocks Telephone WV Calix 2008 R GPON Triple Play 3 ILEC SRT Communications ND Zhone Technologies, 2008 G, R Active Ethernet, ILEC Calix GPON St. Paul Cooperative Telephone OR Calix 2008 GPON ILEC Association State Telephone Company NY Calix 2009 GPON ILEC Stayton Cooperative Telephone OR Occam Networks 2009 R Active Ethernet Triple Play ILEC Stratford Mutual Telephone Company IA Zhone Technologies 2005 R GPON Triple Play 3 ILEC Sunflower Broadband KS Calix, Motorola 2003 GPON CLEC SureWest Communications CA, KS, MO Calix, Allied Telesis 2001 O, R, G PON, Triple Play ILEC Active Ethernet Surry Telephone Membership NC Allied Telesis 2008 R GEPON, Triple Play ILEC Corporation Active Ethernet Swisher Telephone Company IA Calix 2009 R GPON Triple Play ILEC T2 Communications MI Calix 2005 G, O GPON Triple Play CLEC Tamarack Video & Telecom ID Calix 2008 G GPON Triple Play CLEC Taylor Telephone Cooperative TX Zhone Technologies 2007 R GPON Voice, Data ILEC TDS Telecom WI, MN Calix, Ericsson 2005 G GPON Triple Play ILEC Tech Valley Communications NY Calix 2006 O GPON Voice, Data CLEC TelAtlantic WV Tellabs 2006 G BPON Triple Play ILEC Telepak Networks MS Calix 2005 O GPON Triple Play ILEC Telephone Electronics Corporation (TEC) MS, AL, TN ADTRAN 2008 R GPON Triple Play ILEC Teton Telecom ID Calix 2004 G GPON Triple Play ILEC Thacker-Grigsby Telephone KY Calix GPON ILEC Three River Telco NE 2008 R 3 ILEC Toledo Telephone WA Calix 2006 O GPON Triple Play ILEC Topsham Telephone VT 2006 Triple Play 3 ILEC Tri County Telephone (TCT West) WY Calix 2004 R GPON Triple Play 3 ILEC Triangle Telephone Cooperative MT 2007 R Triple Play ILEC Truvista Communications SC Calix GPON Triple Play ILEC TSC OH Calix 2003 O GPON Triple Play ILEC Tularosa Basin Telephone Company NM Occam Networks 2006 R Active Ethernet Triple Play 3 ILEC Twin Valley Telephone KS Allied Telesis 2006 R, O Active Ethernet, Triple Play ILEC GEPON UBTA-UBET Communications UT Calix, Occam 2007 G BPON, Active Voice, Data ILEC Networks Ethernet Union River Telephone Company ME Calix 2008 R GPON Voice, Data 3 ILEC Union Springs Telephone AL Calix 2001 R GPON Triple Play ILEC Union Telephone NH Enablence 2007 R Active Ethernet Triple Play ILEC

October 2009 | www.broadbandproperties.com | BROADBAND PROPERTIES | 89 INDEPENDENT TELCOS

Provider States Vendor - FTTH Date Greenfield/ technology Services rUS iLEC/ electronics overbuild/ Loan CLEC replace

United Telephone Company TN Calix 2004 G GPON Triple Play ILEC United Telephone Mutual Aid ND Allied Telesis 2008 R Active Ethernet Triple Play ILEC Corporation United Telesystems GA Alcatel-Lucent 2003 O BPON Triple Play CLEC Upper Sioux Community MN Calix 2009 GPON ILEC US SONET IL Enablence 2003 O PON Triple Play 3 CLEC Valley Telecom Group AZ Enablence 2005 R EPON Triple Play 3 ILEC Valley Telecommunications Cooperative SD Calix 2008 R GPON Triple Play ILEC Valley Telephone Cooperative TX Enablence 2005 G GPON Triple Play ILEC Venture Communications Cooperative SD Calix 2006 R GPON ILEC Veracity Networks UT Telco Systems 2005 G Active Ethernet Triple Play, Gaming CLEC Vermont Telephone VT Calix 2007 R BPON, GPON ILEC Wabash Mutual Telephone OH Enablence 2005 O EPON Triple Play ILEC Wahkiakum West Telephone WA R ILEC Waitsfield and Champlain Valley VT Enablence 2007 G Active Ethernet Voice, Data ILEC Telecom Walnut Communications IA 2009 O ILEC Wamego Telecommunications KS Calix 2002 R GPON Triple Play ILEC Warwick Valley Telephone NY Enablence, 2006 O Active Ethernet Triple Play ILEC Communications Occam Networks Webster-Calhoun Cooperative IA Calix 2005 R GPON Triple Play ILEC Telephone Association West Central Telephone MN Calix 2005 R PON Triple Play ILEC West Plains Telecommunications TX Alloptic 2006 R GEPON Triple Play 3 ILEC (Five Area Telephone Cooperative) West River Cooperative Telephone SD Calix 2007 R GPON ILEC Company West Texas Rural Telephone TX Calix 2007 O GPON Triple Play ILEC Cooperative (WT Services) West Wisconsin Telcom Cooperative WI Calix 2007 R GPON ILEC Westel Fiber ID G Triple Play CLEC WesTel Systems IA Calix 2009 GPON ILEC Westphalia Telephone MI Occam Networks 2006 O Active Ethernet ILEC Wide Open West (Sigecom) IN Motorola, Occam 2001 O GPON Triple Play CLEC Networks, Calix Wiggins Telephone CO Calix 2008 R GPON Data, Voice 3 ILEC Wilkes Telephone & Electric GA Calix 2006 R GPON Triple Play ILEC Windstream Communications AL, AR, FL, Calix 2006 G GPON Voice, Data ILEC GA, KY, NE, NC, SC, TX Windwave Communications OR Calix 2004 O PON Triple Play CLEC Winn Telephone MI Calix O BPON ILEC Winnebago Cooperative Telecom IA Calix GPON ILEC Association Wittenberg Telephone WI Calix BPON ILEC Xfone (NTS) TX Calix, 2003 G, O GPON Triple Play 3 CLEC XIT Rural Telephone Cooperative TX Calix 2008 R GPON Triple Play ILEC Yadkin Valley Telecom NC Zhone Technologies 2007 GPON Triple Play ILEC Yucca Telecom (Roosevelt County NM Calix 2005 R GPON Voice, Data 3 ILEC Rural Telephone Cooperative) Zial Networks ID, UT AFL Tele- 2003 G, O Active Ethernet Triple Play CLEC communications Zito Media PA 2008 O Voice, Data CLEC Zona Communications AZ Calix 2005 G GPON Voice, Data 3 ILEC

90 | BROADBAND PROPERTIES | www.broadbandproperties.com | October 2009 ARE YOU FEELING THE HEAT TO DELIVER DIGITAL HDTV?

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By Masha Zager ■ Broadband Properties

uman beings aren’t Neptuny’s recommendation engine suggests meant to be passive consumers of culture. video choices to viewers based on what they’ve Give us recorded mu- watched in the past or on their friends’ ratings of sic, we’ll give you mix Htapes and mash-ups. Give us TV and, shows. Viewers purchase about 20 percent of the after a few decades watching sitcoms premium content recommended to them. and wrestling matches, we’ll start making our own shows and uploading them to YouTube. pect to see creative new widgets that will ContentWise’s personalized recom- Many service providers still describe make watching TV still more interactive mendations may be based either on their video offerings in terms of numbers and social. subscribers’ viewing history (especially – so many standard-definition channels, What video offerings will look like in shows they watched through to the end) so many in high definition (and soon five or 10 years, and how they will gen- or on how their friends rate shows. Op- 3-D), so many movies on VoD. But erate revenues, is still a mystery. But here erators can customize the system – for though numbers are important, even is a quartet of applications that point the example, by deciding whether to recom- critical, today’s subscribers are looking way to a different future. mend adult content, whether to prioritize for more. more profitable titles, or whether to add Neptuny ContentWise: What Video is revealing itself as a social editorial recommendations of their own. Would You Recommend? medium, though its social uses are only Neptuny’s software is pre-integrated beginning to emerge. In the words of Can you have too much of a good thing? with IPTV middleware, such as Mi- University of Minnesota professor An- As service providers add more chan- crosoft’s Mediaroom, which is used by drew Odlyzko, content isn’t king – com- nels and more VoD offerings, subscrib- AT&T, SureWest and other large IPTV munication is. Soon, the value of TV ers have a harder time finding content. providers. Depending on the middle- won’t be in what’s on Channel 2 at 9:00 Choosing a movie on VoD can now ware package, the user accesses Con- or even in what’s on VoD when we have take almost as long as watching it. This tentWise via a set-top box, PC or mobile a spare hour. Rather, the value will lie in spring, Neptuny (www.neptuny.com), phone, using a remote control, keyboard our use of the medium as a way to social- a technical services company founded or handset. The Web-based PC portal ize with friends and family, as a spring- 10 years ago by researchers at the Ital- offers more features than the others, board for our creativity and playfulness, ian university Politecnico di Milano, in- including a five-star rating system, the and as a means to educate ourselves and troduced a solution to help TV viewers ability to identify favorite actors and take charge of our lives. make better (or at least faster) decisions. other types of explicit preferences. This summer, Verizon opened a de- Neptuny’s new ContentWise product veloper interface to its FiOS TV service is a recommendation engine for IPTV Revenue Opportunities for Providers and invited application providers to video services. ContentWise isn’t a boon only for sub- participate in a Widget Bazaar. Already, FiOS subscribers can use Facebook and Twitter on the television screen to chat About the Author about the shows they are viewing, or Masha Zager is the editor of Broadband Properties. You can reach her at masha@ play fantasy football while they watch broadbandproperties.com. the real thing. A year from now, we ex-

92 | BROADBAND PROPERTIES | www.broadbandproperties.com | October 2009 Social Video scribers, says Stefano Moscetti, head of tools to educate and involve hospital path. A division of Cablevision, Opti- digital media business development for patients. GetWellNetwork’s offerings, mum Lightpath is a competitive local Neptuny; it also generates more revenue which more than 60 hospitals have ad- exchange carrier (CLEC) that provides for service providers. FastWeb, an Ital- opted, include educational video on de- fiber-to-the-business services in the New ian service provider with a large fiber- mand and interactive assessment tools, York tristate area. Optimum Lightpath to-the-home network, found that users all delivered through the ubiquitous has made a specialty of serving health purchased more than 20 percent of the bedside TV. Patients interact using pil- care providers – it serves as many as 70 content recommended to them within a low speakers and wireless keyboards or percent of the hospitals in its footprint week. At the time, FastWeb was using touch screens. and close to 100 percent of the hospitals a simple remote-control interface and The system is tied into the hospital on Long Island. making recommendations based only on database so nurses can recommend vid- Stephen Hiscott, vice president of metadata. Moscetti says, “I believe there eos and assessment tools based on a pa- business development for GetWellNet- is a huge potential for this number to tient’s age, treatment plan, language and work, says that the benefit of working grow and be even higher with advanced other characteristics. The content isn’t with Optimum Lightpath is the com- scenarios like community recommenda- purely clinical – patients also use the pany’s “long-standing relationship with tions or friends’ suggestions.” system to interact with support services hospitals and health systems throughout Neptuny is working on integrating such as nutrition and housekeeping. the New York metropolitan area, its ex- its software with Facebook and other Researchers have intensively studied pertise in delivering content and con- external social networks so viewers can and documented GetWellNetwork’s re- nectivity to those hospitals and commu- benefit from the input of a wider range sults. Academic hospitals, community nities … and its exceptional customer of friends and interest groups. The ser- hospitals and even pediatric hospitals service.” Optimum Lightpath’s robust vice provider can decide whether to have all seen remarkable changes in the and reliable fiber-based network is also import information from these external participation of patients and families. a plus, Hiscott adds. networks or to use ratings only from its Hospitals, rather than patients, pay For Optimum Lightpath, the rela- own subscribers. for the system on a per-bed basis. From tionship is also a good fit. Julia McGrath, Neptuny’s biggest challenge has the hospitals’ point of view, GetWell- the provider’s senior vice president of been to make the software easy for the Network has three major benefits: First, business development and marketing, provider to integrate and easy for the outcomes are better. Because educated says Optimum Lightpath aims to build viewer to use. ContentWise must pro- patients are more compliant with doc- smart communities of businesses us- vide recommendations in real time even tors’ orders, they are more likely to re- ing targeted applications to improve under huge load conditions – after all, cover and to avoid complications. customer service and outcomes. She the idea is to make the selection process Second, avoiding complications may comments, “This type of application, faster for viewers. allow hospitals to collect reimburse- offered exclusively through Optimum ments for more of their expenses. (Treat- Lightpath in our footprint, would be a GetWellNetwork: Video for the ment for some hospital complications, good message to say this is a smart busi- Hospital Patient such as falls, are are not reimbursable ness communications solution for the When Michael O’Neil was diagnosed because hospitals are supposed to pre- hospitals we are partnered with.” She with non-Hodgkins lymphoma, his vent them.) calls GetWellNetwork’s offering “very world turned upside down. Confined Finally, the system helps hospitals transformational to the patient experi- to a hospital bed, too weak to read, he control costs by removing some of the ence, and a huge benefit for the hospital had plenty of time to consider what was burden from the nursing staff. Patients community.” wrong with his experience as a patient. can request support services directly, As a fiber-to-the-business provider, Though he was fortunate enough to and the efficiency of the nursing staff McGrath says, Optimum Lightpath can make an exceptional recovery, he felt improves when patients and their fami- passive and disengaged from the care lies take more active roles in treatment. tailor bandwidth precisely to the hospi- he was receiving. Recognizing that he GetWellNetwork is taking advan- tal’s requirements. Electronic medical wasn’t the only patient who felt this tage of new technology to develop ad- records are bandwidth-intensive to begin way – and that actively engaged patients ditional interfaces. An iPhone version is with, and applications such as GetWell- generally have better outcomes and are in beta testing, and videoconferencing Network that build on the information more satisfied with their treatments – he through the TV is also being tested with in those records help leverage the use of determined, once he was better, to help a client. the bandwidth. other patients participate more fully in “It’s a great fit for us to take what their own care. The Service Provider Connection we know about how hospitals operate, Ten years ago, O’Neil founded Recently, GetWellNetwork entered into what’s important to them, and layer GetWellNetwork.com (www.getwell- a resale agreement – its first ever – with on top of it,” she adds. “We’re trying network.com), which uses technology the service provider Optimum Light- to give them the types of applications

October 2009 | www.broadbandproperties.com | BROADBAND PROPERTIES | 93 Social Video

opportunities for live video discussion. This version supports reservations, registration, statistics, polls and other features found in webinar software. Consumer use of Watchitoo is free, though the company will get a cut of payments for content shared through the site. The premium version will be available on a subscription basis, with a usage fee if the audience is large. Watchitoo is also working with media companies to add its environment to their Web-based media players. “You want people to interact over your content,” Zarom says. “They can chat, pause, and move on to another movie. It’s almost like a session you control – you don’t have that are meaningful to their business, ing. Only the potato chips are missing. to log out to change the content.” to improve and simplify their business Watchitoo’s approach has other Service providers, too, can custom- processes and control costs. advantages besides requiring little up- ize Watchitoo and embed it into their “I don’t want to say this application stream bandwidth. Because the appli- portals for subscribers to use. “For the can displace the need for urgent care or cation is completely Web-based, users service provider, it’s a good opportunity face-to-face interaction,” McGrath con- don’t need to download a software cli- to get into this trend,” Zarom says. “It’s tinues, “but it lets hospital staff make bet- ent or even to register. The session host an amazing communication and col- ter use of their time, and it creates a bet- invites guests via e-mail and the guests laboration tool.” ter patient experience. If those two things simply click on a link to start watching. are accomplished, that’s good news.” The unlimited number of guests is Openet Content Anywhere: another advantage. A host can make Video With Legs Watchitoo: The Virtual a session public and invite the world to Since the broadband video explosion be- Living-Room Couch watch along. gan, service providers have struggled to We began hearing about viral videos keep subscribers from cutting the cord. when YouTube let users e-mail links to Communication and Collaboration If viewers can watch Internet video any- their favorite amateur video clips. Sud- According to Zarom, Watchitoo has where, why buy video services usable denly tens of millions of viewers were inspired many uses, ranging from the only at home? Some providers have tried watching in fascination as teenagers obvious – youngsters listening to music capping Internet bandwidth to limit the wielded light sabers or lip-synced pop with friends, family members sharing use (or abuse) of broadband video, but songs. But playing an e-mailed video photos and videos – to the ingenious, this makes subscribers angry and resent- isn’t the same as sitting with a friend such as artists giving guided tours of ful – not the feelings any business wants on a couch, munching potato chips and their work. to inspire in its customers. chatting while you watch. Watchitoo’s blog cites examples as Another strategy is to allow sub- Several application providers, includ- diverse as study groups, political activ- scribers to take their video on the road. ing Skype and Google, have introduced ism and direct sales. One young actress Recently, some service providers have real-time video sharing so distant friends writes on the blog, “Even more vital to expressed interest in TV Everywhere, can watch videos together, but these ap- the artistic process than a passive audi- in which customers can watch the same plications require high (and reliable) ence is the feedback that fosters conver- content on any platform – TV, PC or upstream bandwidth to work properly. sation and better understanding. I can mobile device. In June, Dublin-based Serial tech entrepreneur Rony Zarom, not only share a reading of my new play Openet (www.openet.com) launched looking for a way to share videos with with my uncle across the country, but its Content Anywhere solution, which his son, devised a different approach. he can share his thoughts [in] real time lets service providers authorize and bill Watchitoo (www.watchitoo.com), the with me. With one click, he becomes as customers for multiplatform offerings. start-up he founded in 2007, recently much a part of the process 3,000 miles Using Content Anywhere, a subscriber launched the public beta of an applica- away as I am in a small blackbox theatre might rent a movie on VoD, start watch- tion that lets users multicast videos from in lower Manhattan.” ing it on TV at home, leave for a trip and a central server. Viewers watching a show Businesses can embed a white-label continue watching the next day from a together can instant message or video version of Watchitoo on their Web sites laptop. The service would know the 24- chat in real time about what they’re see- to give Web-based presentations with hour viewing window was still open and

94 | BROADBAND PROPERTIES | www.broadbandproperties.com | October 2009 Social Video might even start the movie at the point canned set of business rules that apply to piece of the puzzle, Manzo emphasizes. the viewer stopped watching. every operator. They’re all different.” On the technical side, operators still need According to Mike Manzo, Openet’s Operators could use Content Any- to serve the content to all three screens. chief marketing officer, “To adapt to where simply as a way to retain custom- (Multiplatform content-publishing solu- today’s mobile lifestyle and ensure that ers, or they could charge for mobile ac- tions are available from companies such premium content doesn’t become com- cess – for example, a VoD movie rental as Ioko and ExtendMedia.) moditized so that people expect it for might cost an extra dollar if viewed on Marketing the offering so as to avoid free, providers need to offer access wher- the laptop. They can also use mobile a subscriber backlash also presents a chal- ever subscribers go, on any device they video to increase advertising revenues, lenge. Manzo says, “It behooves market- choose to use.” because the three-screen model raises ing departments to think creatively and Openet provides billing and trans- the value of cross-medium ad cam- do their homework on market segments actional intelligence solutions to Tier 1 paigns. When subscribers watch TV via with different scenarios … vacationers, operators worldwide; Content Anywhere their laptops or iPhones, advertisers can business travelers and so forth. You’ve uses the same technical platform coupled still reach them. got to get it right from the start.” with different business rules. Manzo ex- What’s more, personal logins enable plains, “It’s very much like prepay – in advertisers to target advertising to the in- Marketing the strategy to content fact, it’s the exact same thing except dividual viewer. “We can enforce paren- owners, which Manzo didn’t men- with much more complex decisions. tal controls or legal restrictions,” Manzo tion, may take even more work. Not all Content Anywhere is a set of rules that says, “and the age and basic demograph- content owners are on board with TV looks at the user, their billing plan, their ics give you a lot to work with; you can Everywhere. But for many service pro- physical location, whether the content is create a unique advertising proposition viders, delivering content on multiple free or charged, the basis of the charge, that Hulu can’t match, because they use platforms is clearly a priority. “Most op- whether it’s time-limited or single-view, cookies.” erators have two or three initiatives that and so forth. The software has to be very Openet expects to see Content Any- are really important to them,” Manzo scalable and flexible, because there’s no where deployed by year-end. It’s only one says. “This is one of the top three.” SPECIAL SUBSCRIBER OFFER $350 USE VIP CODE: BBPSUB (for current subscribers ONLY) Good until 11/20/09 www.bbpmag.com, CLICK REGISTER

April 26 – 28, 2010 InterContinental Hotel – Dallas Addison, Texas The Leading Conference on Broadband Technologies and Services To Exhibit or Sponsor, contact: Irene Prescott at [email protected], or call 316-733-9122. For other inquiries, call 877-588-1649, or visit www.bbpmag.com.

October 2009 | www.broadbandproperties.com | BROADBAND PROPERTIES | 95 BBP Readers Discover Benefits of Digital Pub While Also Continuing to Take Print Magazine

round the world, readers of One department that has been taken can sign up for the digital edition on the Broadband Properties Magazine out of the print publication is the News magazine’s home page, or by clicking Aare discovering the benefits of & Views section. That section, however, www.bbpmag.com/subscribe the new digital edition, even though the was not incorporated into the digital For a limited time, the magazine will publication’s print offerings continue edition but rather was moved to the offer free subscriptions to both print and to be strengthened and expanded. An bbpmag.com home page so that break- digital publications. After the period ex- increasing number of Broadband Prop- erties readers are opting to subscribe to ing news could be delivered to readers in pires, new subscribers will be limited to both the print and digital issues. a more timely fashion. one choice of format and be required to The digital edition’s popularity has New and existing print subscribers pay for an additional subscription. BBP grown to the point where its circulation will be audited by BPA Worldwide, official auditing agency for business pub- United States Postal Service lications. Auditing procedures have been in place for months, though the official report will be included for the first time Statement Of Ownership, in the December circulation statement. The magazine has been issued in digital Management, and Circulation format since June 2008; special maga- (Requester Publications Only) PS Form 3526-R zines have also appeared in digital for- 1. Publication Title: Broadband Properties Magazine 15. Extent and Nature of Circulation: Average No. No. Copies of 2. Publication Number: 0745-8711 mat, including Fiber-to-the-Home prim- Copies Each Issue Single Issue 3. Filing Date: 10-01-09 During Preceding Published Nearest 12 Months to Filing Date 4. Issue of Frequency: 9 times a year ers for international markets produced in a. Total Number of cooperation with the FTTH Councils in 5. Number of Issues Published Annually: 9 Copies (Net Press Run): 8,717 9,349 6. Annual Subscription Price: Free to Qualified; $24.00/Year for b. Legitimate Paid and/or Request Distribution (By mail & Outside the Mail) Europe and Latin America. Non-Qualified (1) Paid/Requested Outside-County 7. Complete Mailing Address of Known Office of Publication (not Mail Subscriptions Stated on Form Readers have shown great enthusi- 3541. (Include advertiser’s proof printer): Broadband Properties, LLC, 1909 Avenue G, Rosenberg, and exchange copies). 6,824 6,795 asm for the digital editions. Unlike Web TX 77471 (Fort Bend County) (2) Paid In-County Subscriptions Stated 8. Complete Mailing Address of Headquarters of General Busi- on Form 3541 (Includes advertiser’s material, the digital issues have the same proof and exchange copies). 0 0 ness Office of Publisher (not printer): Broadband Properties, LLC, (3) Sales Through Dealers and Carriers, page format and publishing frequency 1909 Avenue G, Rosenberg, TX 77471 (Fort Bend County) Street Vendors, Counter Sales, and 9. Full Names and Complete Mailing Address of Other Paid or Requested as the printed publications. Subscribers Distribution Outside USPS®. 0 0 Publisher, Editor, and Managing Editor: (4) Requested Copies Distributed by receive alerts via e-mail when each new Editorial Director & CEO: K. Scott DeGarmo, Broadband Proper- Other Mail Classes Through the ties, LLC, 2727 Palisade Avenue, 16-H, Riverdale, NY 10463 USPS (e.g. First-Class Mail®). 312 24 digital edition is published, and they Publisher: Nancy McCain, Broadband Properties, LLC, 1909 c. Total Paid and/or Requested Circulation (Sum of 15b (1), (2), (3), and (4)). 7,136 6,819 can click on the e-mailed links to access Avenue G, Rosenberg, TX 77471 d. Nonrequested Distribution - (Comp Editor: Masha Zager, Broadband Properties, LLC, 1909 Avenue G, copies sent by mail and outside the mail). the publication. Rosenberg, TX 77471 (1) Outside County Nonrequested Copies Stated on PS Form 3541. 0 0 Corporate Editor: Steven Ross, Broadband Properties, LLC, 1909 The benefits of taking the digital is- (2) In-County as Stated on Form 3541. 0 0 Avenue G, Rosenberg, TX 77471 (3) Other Classes Mailed through the sue include receiving extensive bonus 10. Owner(s): USPS®. 0 5 K. Scott DeGarmo, 2727 Palisade Avenue, 16-H, (4) Nonrequested Copies Distributed editorial, such as expanded articles and Outside the Mail (Trade shows, etc) 477 2,100 Riverdale, NY 10463 e. Total Nonrequested Distribution additional graphics, charts, maps and Robert L. Vogelsang, 1208 Second Street, Rosenberg, TX 77471 (Sum of 15d (1), (2), (3), and (4)). 477 2,105 W. James MacNaughton, 150 JFK Parkway, Suite 100, Short Hills, f. Total Distribution (Sum of 15c and e) 7,613 8,924 statistics. Readers can search the digital NJ 07078 g. Copies not Distributed (See Instructions to Publishers #4, (page #3) 658 425 Maxco, Inc., 1660 S. Hwy. 100, Suite 590, Minneapolis, MN 55416 issues either one publication at a time h Total (Sum of 15f and g) 8,271 9,349 Convergent Communications, 1419 W. 12th Place, i. Percent Paid and/or Requested or across all issues. They can also e-mail Suite 105, Tempe, AZ 85281 Circulation (15c divided by f times 100) 93.73 76.41 links to the issues as well as to indi- 11. Known Bondholders, Mortgagees, and Other 16. Publication of Statement of Ownership for a Requester Security Holders Owning of Holding 1 Percent or More of Total Publication is required and will be printed in the October 2009 vidual articles. For sharing, navigating, Amount of Bonds, Mortgages, or Other Securities: issue of this publication. or searching, the digital issue has vastly Robert L. Vogelsang, 1208 Second Street, Rosenberg, TX 77471 17. Signature and Title of Editor, Publisher, Business Manager, W. James MacNaughton, 150 JFK Parkway, Suite 100, Short Hills, or Owner: more functionality than a PDF. NJ 07078 Nancy McCain, Publisher Date: September 23, 2009 Maxco, Inc., 1660 S. Hwy. 100, Suite 590, Minneapolis, MN 55416 I certify that all information furnished on this form is true and The guiding principle in developing Convergent Communications, 1419 W. 12th Place, Suite 105, Tempe, complete. I understand that anyone who furnishes false or mislead- AZ 85281 the electronic edition has been to add ing information on this form or who omits material or information 12. Tax Status: Has not changed during preceding 12 months. requested on the form may be subject to criminal sanctions (includ- material to the digital publication with- 13. Publication Title: Broadband Properties Magazine ing fines and imprisonment) and/or civil sanctions (including civil out detracting from the print product. 14. Issue Date for Circulation Data Below: September 2009 penalties).

96 | BROADBAND PROPERTIES | www.broadbandproperties.com | October 2009 BROADBAND PROPERTIES 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 Prescott at 316-733-9122 or email [email protected].

Upgrade Your FTTH Proposal! Connected Communities

They play. You win. OFFER AT&T CONNECTED COMMUNITIES, and your tenants get a full range of entertainment options, superior voice and internet connectivity, while you earn a little extra for yourself. Visit att.com/communities to find out how to give, receive, and Stretch. Data and analysis from hundreds of projects to support BIP/BTOP proposal claims about local community impact, take-rates, and more!

© 2009 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T www.RVALLC. c o m affiliated companies. Subsidiaries and affiliates of AT&T Inc. provide products and services under the AT&T brand.

One company has more Client / AT&T Prod. Manager / Cheryl Sparks Ad# / 6252-V1 Traffic / Sherri Walton U.S. FTTP customers than Title / “Apartment” Digital Artist / Evan Willnow Media / 4-Color Program Ad Art Director / Leslie Schad all other vendors combined. Size / 3.35" x 2.75" Copywriter / Spencer Campbell Acct Manager / Jacqueline Bodet Pub / BroadbandAEG Properties designs Dateand Prep abuildsred / 08/20/2009 all types of Marketplace 264 fiber optic networks from Fiber to the

All other vendors 159 Premises to SmartGrid to WAN and

0 50 100 150 200 250 300 INET deployments. We would like to (Broadband Properties, March 2009) be your design/build partner. Innovation. Experience. Service. 706-654-2298 www.calix.com (877) 766-3500 [email protected]

Get turned on to AMT for the best in broadband electronics equipment Your FTTH Resource

We’re the only equipment source www.AFLtele.com you’ll need. 1.800.235.3423

www.amt.com 888.293.5856

October 2009 | www.broadbandproperties.com | BROADBAND PROPERTIES | 97 BROADBAND PROPERTIES Marketplace

Verizon FiOS: 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 Single Family | Multiple Dwelling Unit | Business 1.800.366.3891 | www.adc.com/carrier Verizon FiOS services not available in all areas. ©2009 Verizon.

Connecting the fibers of the world... ®

Hiawatha Broadband Communications Inc. builds fiber-to-the-premise networks and provides voice, video and data services to rural American communities. A Broadband Properties top 100 broadband company. www.hbci.com

From design to deployment...

Through its Total Access ProgramSM (TAP), Corning Connected Everyone benefits when Community™ (CCC) and FTTxpert® Program, Corning Cable you’re wired for DIRECTV. Systems offers seminars,extended warranties,online technical assistance and hands-on training to support every aspect of an Whether you’re a property owner or FTTH deployment.Whether you are a contractor,service provider a tenant, find out why over 50 million or consultant, Corning Cable Systems has a program for you. Americans enjoy DIRECTV every day! www.corning.com/cablesystems/ftthprograms

® 888-342-7288. FProgTTxperam rt

98 | BROADBAND PROPERTIES | www.broadbandproperties.com | October 2009 BROADBAND PROPERTIES Marketplace

Providing the industry’s leading Windows-based billing, subscriber management, Building broadband and provisioning solutions. networks, one community at a time.

800-882-7950 cnxntech.com 760-602-1900 www.glds.com • [email protected] 919-535-7329

THINK FORWARD. .

Let Greenfield Communications using the technology of Alcatel-Lucent and DirecTV bring a full suite of communication services to your property including Telephone, High-speed Data and HD cable TV.

949-248-8898 www.egreenfield.com

October 2009 | www.broadbandproperties.com | BROADBAND PROPERTIES | 99 Ad Index Calendar

Advertiser Page Website November 8 – 10 ADC 9, 98 www.graybar.com/adc NMHC Advanced Media Technologies 97 www.amt.com JW Marriott Desert Ridge Resort & Spa AFL Telecommunications 97 www.afltele.com Phoenix, AZ Atlantic Engineering 97 www.atlanticengineering.com 202-974-2300 www.nmhc.org AT&T Inside Back Cover , 97 www.att.com/communities 10 – 12 Blonder Tongue 99 www.blondertongue.com TelcoTV 09 Broadband Properties Magazine 96 www.bbpmag.com Orange County Convention Center Broadband Properties 13, 33, 35, 38A-38D, 62E-62H, www.broadbandproperties.com Orlando, FL Summit 2010 63, 67, 75, 80, 95, 100 800-441-8826 Calix 1, 97 www.calix.com www.lightreading.com Comcast Cable 7 www.Comcast_BusDev@ December cable.comcast.com 9 Connexion Technologies 19, 99 www.connexiontechnologies.net FTTH Council Telecom Service Providers Workshop Hilton Atlanta Downtown Corning Cable Systems Back Cover, 98 www.corning.com/cablesystems/ Atlanta, GA ftthprograms www.ftthcouncil.org Design Nine 99 www.designnine.com 866-320-6444 DirecTV 3, 98 www.directv.com January 2010 Great Lakes Data 75, 99 www.cablebilling.com 19 – 22 Greenfield Communications 99 www.egreenfield.com International Builders Show Hiawatha Broadband 98 www.hbci.com Las Vegas Convention Center Las Vegas, NV Montclair Fiber Optics 99 www.montclairfiber.com 202-266-8409 Multicom, Inc. 25, 98 www.multicominc.com www.buildersshow.com OFS 5 www.ofsoptics.com february RVA, LLC 97 www.RVALLC.com 22 – 23 Satellite Management Services 91 www.smstv.com NAA Student Housing Conference & Expo Spot On Networks 29 www.spotonnetworks.com Mandalay Bay Resort & Casino Las Vegas, NV Suttle 15 www.suttlesoho.com 703-518-6141 Time Warner Cable 11 www.timewarnercable.com www.naahq.org Toner Cable Equipment, Inc. 71 www.tonercable.com march Verizon Enhanced Communities Inside Front Cover, 98 www.verizon.com/communities 23 – 25 OFCNFOEC San Diego Convention Center San Diego, CA MARK YOUR 202-416-1975 www.ofcnfoec.org CALENDAR April The Leading Conference on Broadband Technologies and Services 26 – 29 April 26 – 28, 2010 Broadband Properties Summit InterContinental Hotel – Dallas InterContinental Hotel – Dallas Addison, Texas Addison, Texas 877-588-1649 • www.bbpmag.com “… our experience at the show this year was tremendous! You and your team did a great job recruiting top notch attendees during a tumultuous market. My sales team set meetings with key retrofit targets and June managed to engage potential future developer partners of which we were previously unaware.” 24 – 26 – Carter Steg, Executive Vice President, NAA Education Conference & Expo Corporate Sales and Marketing, Connexion Technologies Ernest N. Morial Convention Center To Exhibit or Sponsor, contact: Irene Prescott at New Orleans, LA [email protected], or call 316-733-9122 703-518-6141 For other inquiries, call 877-588-1649, or visit www.bbpmag.com www.naahq.org

100 | BROADBAND PROPERTIES | www.broadbandproperties.com | October 2009 Connected Communities

How they use it is up to them. How you profit is up to you.

OFFER AT&T CONNECTED COMMUNITIES,2 and your tenants get to customize their ideal mix of voice and Internet connectivity, with superior options that include U-verse TV solutions and complimentary access at thousands of Wi-Fi locations. And you’ll profit from our competitive commissions program. Visit att.com/communities to find out how offering greater flexibility can also flex your income. Stretch.

att.com/communities

Watches sports. Blogs about sports. All at the same time.

Out for coffee now, recording shows for later.

Runs her business from her PDA.

© 2009©IntellectualAT&T Property.Allrights reserved.logotheAT&Tand otherall AT&T, marks AT&T contained herein are trademarks of AT&T IntellectualSubsidiaries Property and affiliatesand/or of AT&TAT&T Inc. affiliated provide products companies. and services under the AT&T brand.

6252-D1-R1_Apartment_8.375x10.875.indd 1 9/8/09 10:52:01 AM

Client / AT&T Pubs / Big Builder Prod. Manager / Cheryl Sparks Ad# / 6252-D1-R1 Multi Family Executive Traffic / Sherri Walton Title / Apartment Apartment Finance Today Digital Artist / Robb Blackwell Media / 4-Color Ad Units Art Director / Valerie Tirella Size / 8.375" x 10.875" largest trim Broadband Properties Copywriter / Kay Cochran 7.875" x 10.5" smallest trim Florida Community Association Acct Manager / Jacqueline Bodet 8.625" x 11.125" bleed Journal Date Prepared / 09/04/2009 7" x 10" live EV-02808_BBPOCT09:Layout 1 9/15/09 12:04 PM Page 1

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*Program valid until 12/31/2009. Housing must be a competing 4U unit (empty, stubbed or pigtailed) and 35% discount is based on Corning Cable System’s list price. Old unit(s) must be shipped back to Corning Cable Systems at customer expense or can be destroyed with a Corning Cable Systems witness (we'll bring the sledgehammer!). Only standard terms and conditions apply. United States-based customers only. Please contact Graybar, KGPL or any other authorized Corning Cable Systems distributor to take advantage of this time-sensitive offer.