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TO SPONSOR OR EXHIBIT: email: [email protected] | phone: 505-867-3299

877-588-1649 | www.bbcmag.com | twitter.com/bbcmag To exhibit or sponsor, contact: Irene Prescott at [email protected], or call 505-867-3299 Now Presenting The 2021 Introducing the 2021 MDU Chairs and Broadband Summit Chairs 2021’s Advisory Panel of Property Owners Lending Their Expertise to the Creation of a Timely, Dynamic Program Expanded Multifamily Housing Program Eleven outstanding leaders in the fields of multifamily broadband, municipal broadband and rural broadband have signed on to help shape the program at the 2021 Summit. An Agenda Developed by Industry Leaders THE NEW 2021 MDU CHAIRS

Cheryl Jordan Kevin Donnelly Linda Willey Sr. Director Telecommunications, Vice President for Government Affairs Director of Ancillary Services Operations & Investment Services National Multifamily Housing Council Camden Heather Burnett Gold Mike Smith Drew Clark AvalonBay Communities, Inc. CEO President President HBG Strategies, LLC White Space Building Rural Telecommunications Technology Advisors Congress, Broadband Breakfast THE 2021 ADVISORY PANEL OF PROPERTY OWNERS Of Counsel, The CommLaw Group

Gail Corder Barney Pullam Andrea M. Taylor Ancillary Services Manager – VP Strategic Business Services Director of Ancillary Services Property Management The Inland Real Estate Group, LLC Morgan Properties Fairfield Residential

Bryan Rader Monica Webb Jim Baller Dean Wolfe MDUs – multiple-dwelling-unit buildings – have found themselves needing to evolve from a place for President Head of Market Development Telecom Attorney Vice President of Technology UpStream Network & Strategic Partnerships Keller and Heckman LLP and Vendor Relations residents to lay their heads at night to those residents’ full-time home, their workplace, their schoolroom, Ting Internet/Tucows Choice Property Resources, Inc. their doctor’s office, and whatever else it takes to successfully navigate living in the COVID-19 era. Our MDU committee has begun assembling an incredible new program to help building owners and managers and real estate developers, investors and permitting officials with what they need to know to strategize effectively in the COVID-19 era. As always, we provide clear, actionable detail in plain English. Join us and more than 1,000 of your colleagues in Houston. Be there with your peers!

Tom Stender Sheryl Riggs Bob Knight Carl Meyerhoeffer President and CEO President & CEO Executive Vice President & COO Senior Director, Strategic and InfiniSys Utilities Technology Council Harrison Edwards Strategic Solutions Marketing Communications, Inc. Calix Make plans to attend the 2021 Broadband Communities Summit now. Now Presenting The 2021 Introducing the 2021 MDU Chairs and Broadband Summit Chairs 2021’s Advisory Panel of Property Owners Lending Their Expertise to the Creation of a Timely, Dynamic Program Expanded Multifamily Housing Program Eleven outstanding leaders in the fields of multifamily broadband, municipal broadband and rural broadband have signed on to help shape the program at the 2021 Summit. An Agenda Developed by Industry Leaders THE NEW 2021 MDU CHAIRS

Cheryl Jordan Kevin Donnelly Linda Willey Sr. Director Telecommunications, Vice President for Government Affairs Director of Ancillary Services Operations & Investment Services National Multifamily Housing Council Camden Heather Burnett Gold Mike Smith Drew Clark AvalonBay Communities, Inc. CEO President President HBG Strategies, LLC White Space Building Rural Telecommunications Technology Advisors Congress, Broadband Breakfast THE 2021 ADVISORY PANEL OF PROPERTY OWNERS Of Counsel, The CommLaw Group

Gail Corder Barney Pullam Andrea M. Taylor Ancillary Services Manager – VP Strategic Business Services Director of Ancillary Services Property Management The Inland Real Estate Group, LLC Morgan Properties Fairfield Residential

Bryan Rader Monica Webb Jim Baller Dean Wolfe MDUs – multiple-dwelling-unit buildings – have found themselves needing to evolve from a place for President Head of Market Development Telecom Attorney Vice President of Technology UpStream Network & Strategic Partnerships Keller and Heckman LLP and Vendor Relations residents to lay their heads at night to those residents’ full-time home, their workplace, their schoolroom, Ting Internet/Tucows Choice Property Resources, Inc. their doctor’s office, and whatever else it takes to successfully navigate living in the COVID-19 era. Our MDU committee has begun assembling an incredible new program to help building owners and managers and real estate developers, investors and permitting officials with what they need to know to strategize effectively in the COVID-19 era. As always, we provide clear, actionable detail in plain English. Join us and more than 1,000 of your colleagues in Houston. Be there with your peers!

Tom Stender Sheryl Riggs Bob Knight Carl Meyerhoeffer President and CEO President & CEO Executive Vice President & COO Senior Director, Strategic and InfiniSys Utilities Technology Council Harrison Edwards Strategic Solutions Marketing Communications, Inc. Calix Make plans to attend the 2021 Broadband Communities Summit now. EDITOR’S NOTE Only Connect CEO Barbara DeGarmo / [email protected] PUBLISHER Nancy McCain / [email protected] EDITOR-IN-CHIEF Masha Zager / [email protected] EXECUTIVE EDITOR Sean Buckley / [email protected] Broadband should bring people together, not drive them apart. EDITOR-AT-LARGE Steven S. Ross / [email protected] COPY CHIEF Eli Penberthy / [email protected] ’ve been writing about the end of the digital divide in the ADVERTISING SALES ACCOUNT communications, on and off, for United States may be within sight. EXECUTIVE about 20 years – since the dawn, Irene Prescott / [email protected] I THE OTHER DIGITAL DIVIDE EVENTS COORDINATOR or at least the early morning, of the Dennise Argil / [email protected] broadband era. During that time, Yet I believe that Americans – even, MULTIFAMILY NEWS CORRESPONDENT broadband went from being a novelty, or especially, those of us who are Valerie M. Sargent / [email protected] to a luxury, to a utility, to something broadband advocates – need to recognize ART DIRECTOR as central to most people’s lives as air the emergence of a second digital Karry Thomas and water. divide. As the United States becomes CONTRIBUTORS Rollie Cole, Sagamore Institute for Broadband Communities’ mission more connected, in some ways we have Policy Research statement says, “Our editorial aims to become more divided than ever. David Daugherty, Clarus Broadband Heather Burnett Gold, HBG Strategies accelerate the deployment of fiber to As it turns out, better access Joanne Hovis, CTC Technology & Energy the home (FTTH),” and that’s what to information also means better Trevor Jones, OTELCO access to misinformation and even to Michael A. Kashmer, Digital Broadband the magazine and conferences have Programming Consultant done since 2004. I believe – as does disinformation. When it’s easier to W. James MacNaughton, Esq. stay in touch with our friends and hear Christopher Mitchell, Institute for the rest of the editorial team – that Local Self-Reliance broadband, especially great broadband, more from those we agree with, it’s Bryan Rader, UpStream Network easier to shut out those who disagree. Craig Settles, Gigabit Nation has the potential to connect people in Robert L. Vogelsang, Broadband productive ways. Social-media algorithms feeding Communities Magazine And not just the potential. Over the us “more of the same” create echo years, we’ve reported many stories about chambers trapping people in alternate BROADBAND PROPERTIES LLC broadband connectivity revitalizing realities, each of which seems to its CEO Barbara DeGarmo dying towns, about telemedicine inhabitants to be the only reality. VICE PRESIDENT, BUSINESS & improving patient outcomes, about Who would have thought, 2,200 OPERATIONS internet in the schools opening years after mathematicians accurately Nancy McCain children’s eyes to the larger world. We’ve measured the circumference of the CHAIRMAN OF THE BOARD Earth, that millions of Americans could Robert L. Vogelsang published articles about individuals be convinced the Earth was flat? BUSINESS & EDITORIAL OFFICE using broadband to connect to family BROADBAND PROPERTIES LLC members and to job opportunities, And who would have thought a 1909 Avenue G • Rosenberg, TX 77471 technology hailed as a platform for civic 281.342.9655 • Fax 281.342.1158 about businesses using broadband to engagement could bring us dangerously www.broadbandcommunities.com become more productive and broaden their markets, and about cities using close to the destruction of democracy? Broadband Communities (ISSN 0745-8711) (USPS 679-050) (Publication broadband to improve public safety and As we think about how to connect Mail Agreement #1271091) is published 7 times a year at a rate of $24 per year respond better to citizens. more people, we need to consider how by Broadband Properties LLC, 1909 Avenue G, Rosenberg, TX 77471. Periodical postage paid at Rosenberg, TX, and additional mailing offices. Deployment of FTTH and other to use these connections to form a POSTMASTER: Please send address changes to Broadband Communities, broadband technologies has been “more perfect union” rather than to PO Box 303, Congers, NY 10920-9852. v CANADA POST: Publications Mail Agreement #40612608. Canada Returns strong for the last several years. Private drive ourselves farther apart. to be sent to Bleuchip International, PO Box 25542, London, ON N6C 6B2. investment in broadband is poised for Copyright © 2021 Broadband Properties LLC. All rights reserved. another banner year, and a political consensus is forming around increased public investment. For the first time, [email protected]

4 | BROADBAND COMMUNITIES | www.broadbandcommunities.com | JANUARY/FEBRUARY 2021

http://communication.walkerfirst.com/bbcmagazine_jan2021 TABLE OF CONTENTS

COVER STORY – INDUSTRY ANALYSIS IN THIS ISSUE 22 Fiber Trends: What 2021 Promises for the Broadband PROVIDER Industry / By Sean Buckley, Broadband Communities PERSPECTIVE The 2021 broadband plans of incumbent telcos, independents, cable operators 12 On to Bigger and Better and electric co-ops will have a ripple effect on consumers and businesses. Things / By Bryan J. Rader, UpStream Network As UpStream Network FEATURES becomes part of Single Digits, the company becomes part of INDUSTRY ANALYSIS TECHNOLOGY a well-capitalized organization 28 Digital Disruption, the 46 25G PON: The Future of better able to serve clients. Pandemic and What It Means Broadband / By Ana Pesovic, Nokia to Carriers / By Tony Thakur, As the broadband industry looks to MULTIFAMILY Great Plains Communications transform fiber to the home to fiber BROADBAND The pandemic has driven carriers to to everything, the advent of 25G has TECHNOLOGY the potential to play a key role in provide the platform for essential Multifamily Broadband connecting consumers, enterprises 14 services, but providers must increase Council Transitions Its capacity and advance automation to and cities and accelerating 5G. Membership to WISPA / keep pace with demand. 48 The Year Ahead in Telecom / By Valerie M. Sargent By Steve Alexander, Ciena Synergies between the INDUSTRY TRENDS 5G may continue to grab headlines organizations made the choice a natural one. Q&A with Gary Bolton of the in 2021, but the telecom industry 30 will be dominated by the edge and Fiber Broadband Association by automation. On Making Fiber-Based PROPERTY OF THE MONTH Broadband the Nation’s 50 A Service Provider’s Guide to Priority the Three Changes in Wi-Fi / 16 Building a Foundation The new head of the FBA shares his By Charles Cheevers, CommScope for a Broadband-Enabled vision for the industry. A group of new innovations – Smart Community: including Wi-Fi 6, 6 GHz spectrum and The Reef at Winkler / Wi-Fi 7 – will open new opportunities By Sean Buckley, CONFERENCE COVERAGE for delivering and supporting Wi-Fi Broadband Communities 34 Fiber’s Community Presence services over the next three years. Boingo Wireless provides Transforms Consumer, managed Wi-Fi services to Changes in the Geospatial Business Opportunities / 54 deliver consumer broadband Industry Will Transform By Sean Buckley, and smart-community Broadband / By Peter Batty, IQGeo Broadband Communities applications. Augmented reality, reality capture, The Fiber Broadband Association’s computer vision, and machine annual conference, Fiber Connect, learning will automate data capture DEPARTMENTS showcased many fiber community of physical broadband infrastructure success stories and a variety of for service providers. EDITOR’S NOTE innovations that promise to expand 4 BANDWIDTH HAWK fiber deployment. 8 ABOUT THE COVER 58 MARKETPLACE ADS BROADBAND POLICY 60 ADVERTISER INDEX / New York artist CALENDAR A Broadband Policy Agenda Irving Grunbaum is 40 making waves. for the New Administration / Visit www.bbcmag.com By Masha Zager, for up-to-the-minute Broadband Communities news of broadband trends, technologies and The digital divide has held back the deployments United States for too long. Now is the twitter.com/bbcmag time to end it.

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To increase the value of your property, visit SpectrumCommunitySolutions.com BANDWIDTH HAWK FCC’s RDOF Auction Dissected

More than 5 million premises are likely to get broadband connectivity, but for some, it may not be as good as promised.

By Steven S. Ross / Broadband Communities

ince announcement of the winners in the FCC’s Rural it amounts to a little less than $15 a month for 10 years, if all Digital Opportunity Fund (RDOF) reverse auction the premises were served on day one. The actual subsidy per Sin December, many people have claimed that winning subscriber household collected by deployers will probably be bidders relied too much on wireless technologies and were far closer to $25 a month. too optimistic about being able to deploy their networks at an Charter Communications (bidding as CCO Holdings) overall cost they can afford. was the big winner in premises served – 1,057,695 in 24 My analysis of the winners in the aggregate, and of states, about 20 percent of all newly served premises. Its public data from many individually, suggests that criticism is average subsidy was the lowest among the top 10, at $1,156, warranted, especially for the many cases in which deployers or about $10 a month. It says it intends to use fiber and cable. claimed their point-to-point wireless networks would deliver The total over 10 years will be more than $1.2 billion. reliable gigabit service. Many of the builds, however, seem to LTD Broadband, the fourth-largest fixed wireless provider make sense. The top four bidders, awarded $4.5 billion for in the United States, with 2,100 tower sites covering more 2.8 million households (more than half of all the auctioned than 50,000 square miles in Iowa, Minnesota, Nebraska, premises), look especially well positioned to deliver what South Dakota and Wisconsin, was the big money winner, they promised. securing more than $1.3 billion over 10 years to connect In a reverse auction, the lowest asked-for subsidy wins. In 528,088 premises at $2,501 each on average. This will the RDOF auction, almost 99 percent of all totally unserved expand the LTD Broadband footprint considerably, to 15 census blocks in the country attracted bidders. The FCC’s states from the current five. The build includes some fiber reserve prices for serving the 5.2 million premises in those but mainly fixed wireless; the per-premises subsidy amounts blocks totaled $26 billion. The FCC budgeted $16 billion. to $21 a month on average. Many winning bidders planning Competition was stiff enough to drive the subsidies for those to deploy the same technology won smaller subsidies. premises down to $9.2 billion, payable out of the FCC’s Looking at premises densities, climate and terrain, that seems Universal Service Fund (USF) over the next 10 years. Bidders counterintuitive and perhaps too optimistic. could use any technology they wanted but got extra bidding Conexon’s Rural Electric Cooperative Consortium won points for gigabit service and latency below 100 milliseconds. more than $1.1 billion to deploy fiber to 618,476 premises Hence the rather optimistic claims for low-latency gigabit in 22 states, for an average subsidy of $1,786, or about $15 a service over wireless, especially point-to-point millimeter month per premises. That’s almost exactly the auction’s overall wave wireless. average subsidy but for the best technology. Electric co-ops, of course, start with some key advantages – they already own the WINNERS poles and the customers. But until a few years ago, they were There were 180 winning bidders – actually more, as some slow to realize it. bidders joined in consortia to bid together under one banner. Fourth in subsidies to be received (almost $886 million) Bidders that join together generally will go on to build and second (by a hair) in premises to be served (642,925) was separate projects. The winning bids covered 49 states by far and away the only one judged worthy of mention by (all except Alaska) and the Northern Marianas Islands, mainstream media: SpaceX. It won territories in 35 states, a U.S. territory. for an average subsidy of $1,377, or about $11 a month. Its The top 10 bidders received 72.6 percent of the $9.2 performance was right in line with my predictions for low- billion in funds awarded ($6.7 billion) and committed to Earth-orbit satellites in the last issue. This should be a huge connecting 72.4 percent of the premises (see Table 1). The boon to residents in many of the nation’s most rural areas, average subsidy was almost identical, within a few dollars even though they won’t save much on fees. of $1,770 per premises served, over 10 years. Different Others in the top 10, and many smaller bidders, offer projects will build out at different rates, with all premises mainly fixed wireless with a dollop of fiber and some committed to be served in six years. As a rough comparison, DSL. Several have just emerged from bankruptcy. Most

8 | BROADBAND COMMUNITIES | www.broadbandcommunities.com | JANUARY/FEBRUARY 2021 TOP 10 SUBSIDY WINNERS IN THE 2020 RDOF REVERSE AUCTION COMPANY BIDDING AS AMOUNT LOCATIONS COST PER PRO FORMA NUMBER TECHNOLOGY LOCATION MONTHLY OF STATES SUBSIDY LTD Broadband LTD Broadband LLC $1,320,920,719 528,088 $2,501 $21 15 fiber and fixed wireless Charter Communications CCO Holdings, LLC $1,222,613,870 1,057,695 $1,156 $10 24 fiber and cable Multiple electric co-ops Rural Electric $1,104,395,953 618,476 $1,786 $15 22 fiber Cooperative Consortium SpaceX Space Exploration $885,509,638 642,925 $1,377 $11 35 LEO satellites Technologies Corp. Windstream Windstream Services $522,888,780 192,567 $2,715 $23 18 asymmetric LLC, Debtor-in- xDSL, fiber and Possession fixed wireless Nextlink Internet AMG Technology $429,228,073 206,136 $2,082 $17 12 fixed wireless Investment Group LLC Frontier Frontier $370,900,833 127,188 $2,916 $24 8 fiber and fixed Communications wireless Corporation, Debtor-in- Possession Resound Networks Resound Networks, LLC $310,681,609 219,239 $1,417 $12 7 fiber and fixed wireless Starry Connect Everyone LLC $268,851,316 108,506 $2,478 $21 9 fiber and fixed wireless CenturyLink/Lumen CenturyLink, Inc. $262,367,614 77,257 $3,396 $28 20 asymmetric xDSL and fiber Total for top 10 bid winners $6,698,358,405 3,778,077 $1,773 $14.77 Total, all winners $9,225,708,696 5,216,625 $1,769 $14.74 49

Table 1: Note that a new technology, low-Earth-orbit satellites, did well but only where it was most suitable.

have a mixed track record. That’s RDOF WINNERS BY STATE where the angst of rural broadband activists is concentrated. STATE PREMISES WINNING BID PER PREMISES SUBSIDY PER PREMISES PER MONTH IF ALL By state, subsidies vary considerably BUILT IN YEAR ONE (see Table 2). Rhode Island had the Rhode Island 3,678 $1,273,784 $346 $2.89 lowest average subsidy, $346 for 3,678 premises, totaling $1,273,784 in all. Ohio 191,093 $170,038,205 $890 $7.42 That adds up to $2.89 per month over Tennessee 155,220 $148,625,826 $958 $7.98 10 years. North Carolina 155,137 $166,580,442 $1,074 $8.95 North Dakota beat out the Marianas Indiana 152,983 $169,379,965 $1,107 $9.23 for the most money per premises, $7,491 for 2,780 premises, totaling $20,824,521 South Carolina 108,833 $121,245,987 $1,114 $9.28 or $62.42 a month. Texas 310,962 $362,662,934 $1,166 $9.72 In total, 2,793 counties – almost Oklahoma 126,153 $154,556,451 $1,225 $10.21 all rural – will have census blocks New Jersey 8,686 $10,739,474 $1,236 $10.30 newly served (see Table 3, a digital Maryland 37,761 $48,023,869 $1,272 $10.60 bonus extra). There are 3,144 counties in the United States. The two newly Virginia 186,475 $238,644,934 $1,280 $10.66 served premises in Jones County, South Massachusetts 25,480 $32,631,916 $1,281 $10.67 Dakota, will cost $36,540 to serve, or Kansas 46,827 $62,107,483 $1,326 $11.05 $18,270 each. That’s the biggest per- Florida 141,625 $191,753,610 $1,354 $11.28 premises subsidy. But the biggest in any (Table continued on page 8)

JANUARY/FEBRUARY 2021 | www.broadbandcommunities.com | BROADBAND COMMUNITIES | 9 BANDWIDTH HAWK

(Table continued from page 7) STATE PREMISES WINNING BID PER PREMISES SUBSIDY PER PREMISES county with more than 100 premises PER MONTH IF ALL newly served is South Dakota’s Dewey BUILT IN YEAR ONE County (112 premises, $1,486,836 or Nebraska 43,435 $60,377,537 $1,390 $11.58 $13,275 each over 10 years). At the other end of the scale, New Hampshire 17,740 $25,257,661 $1,424 $11.86 North Dakota’s Burleigh County, Connecticut 2,899 $4,210,411 $1,452 $12.10 is the cheapest. Its 88 premises cost a Michigan 249,263 $362,985,056 $1,456 $12.14 total of $1,569, equaling less than $18 per premises. Kentucky 98,909 $148,978,767 $1,506 $12.55 Because only $9.2 billion was spent Arizona 129,445 $195,847,668 $1,513 $12.61 in the first round, out of the $16 billion Wisconsin 240,546 $373,715,051 $1,554 $12.95 originally set aside for the RDOF Phase I auction, there is an extra $6.8 billion Vermont 19,330 $32,533,635 $1,683 $14.03 to add to the second phase. That means Alabama 196,460 $330,804,828 $1,684 $14.03 $11.2 billion for census blocks already Delaware 7,757 $13,302,048 $1,715 $14.29 partially served, along with about 50,000 premises in the unserved areas Missouri 199,211 $346,297,660 $1,738 $14.49 that did not get aid in Phase I. That will Georgia 179,455 $326,454,112 $1,819 $15.16 have to be spread across about 10 million California 364,878 $695,158,129 $1,905 $15.88 unserved premises in those areas. Louisiana 175,692 $342,207,315 $1,948 $16.23 All areas in the current RDOF auctions attracted little or no interest Pennsylvania 184,505 $368,743,200 $1,999 $16.65 in the Connect America Fund (CAF) Nevada 30,584 $63,536,611 $2,077 $17.31 auctions the FCC held before RDOF. Arkansas 200,612 $424,243,218 $2,115 $17.62 But given urgency brought on by COVID-19 and new, more flexible and New York 46,647 $99,891,716 $2,141 $17.85 more powerful technologies – satellites Washington 100,422 $222,768,533 $2,218 $18.49 and fixed wireless especially – there is Mississippi 218,990 $495,725,800 $2,264 $18.86 hope. Unfortunately, there has been an attitude of underachievement at Illinois 159,967 $378,310,111 $2,365 $19.71 the FCC, while the USDA has pushed Maine 27,755 $71,175,908 $2,564 $21.37 future-proof, reliable fiber. I do not New Mexico 64,170 $165,209,719 $2,575 $21.45 want to see fiber in inappropriate places. Nor do I want good to be the Oregon 81,634 $212,027,091 $2,597 $21.64 mortal enemy of great. v Iowa 53,819 $143,892,544 $2,674 $22.28

Montana 45,984 $125,815,440 $2,736 $22.80 Contact the Hawk at [email protected]. Idaho 40,706 $112,489,828 $2,763 $23.03 Minnesota 142,841 $408,150,746 $2,857 $23.81

Utah 10,373 $31,384,526 $3,026 $25.21

Wyoming 18,966 $57,471,543 $3,030 $25.25 West Virginia 119,267 $362,066,660 $3,036 $25.30 Hawaii 8,081 $24,740,782 $3,062 $25.51 Colorado 76,216 $249,833,710 $3,278 $27.32 South Dakota 10,051 $52,285,517 $5,202 $43.35 Table 3 is available as a Northern 530 $3,706,235 $6,993 $58.27 PDF for download at Mariana Islands www.bbcmag.com/pub/doc/ North Dakota 2,780 $20,824,521 $7,491 $62.42 Hawk_Jan21_Chart3.pdf TOTAL 5,220,833 $9,230,688,715 $1,768 $14.73 and as an Excel table for download at www.bbcmag.com/pub/doc/ Table 2: Winners are ordered by imputed monthly subsidies. They ranged from Rhode Island JanFeb21-Hawk-RDOF-Table3.xlsx. ($2.83 per premises) to North Dakota (more than 20 times higher).

10 | BROADBAND COMMUNITIES | www.broadbandcommunities.com | JANUARY/FEBRUARY 2021

PROVIDER PERSPECTIVE

On to Bigger and Better Things

As UpStream Network becomes part of Single Digits, the company becomes part of a large, well-capitalized organization that will be better able to serve current and future clients.

By Bryan J. Rader / UpStream Network

e have all seen hard work. We meet people every NEW GROWTH OPPORTUNITIES day we admire and who have worked extremely Recently, several other independent broadband providers Whard to develop something, build something or have successfully taken on new investors or combined their complete something. I’m sure you would agree. businesses with other, often larger, providers. This is the sign When I scroll through my LinkedIn account each of a healthy, growing and attractive industry. morning, I frequently read stories about companies or I’ve been involved in our market for an awfully long time, executives who have climbed a tall mountain and achieved and I can’t remember another period with so much investor a great outcome or result. It may be an award, or a new interest and activity in the broadband space. Although others position, or a new key account. may be in the early stages of their businesses, it’s always a Or something even bigger. good sign when there is this much activity occurring in the A LONG ROAD broadband industry. My colleagues and I recently sold UpStream Network, Now, this does not mean the market should begin to attract which we formed in early 2017, to Single Digits. Today, I companies with short-term mindsets that seek to build and sell sit in admiration of the team members who made this great quickly. This is not appealing to real estate clients, who have a accomplishment happen. much longer-term time horizon for their communities. When we set out to form UpStream, we were dealing In fact, this is not how UpStream viewed the plan. We had with a TV-centric company that had outdated technology, an investor group that had already been in this space for many limited broadband services, and client relationship challenges. years. By joining with a larger, well-capitalized organization, The company was not winning new business and was seeing we can better serve our current and future clients. competitors take away its most prized clients. What impresses me most is the energy in our market Over a multiyear period, the company’s associates were today. Dozens of hard-working entrepreneurs and operators able to launch the UpStream Network platform, rebuild the are hustling day and night to bring high-quality services to company’s reputation with customers, change the company their clients. They’re growing and winning and continuing culture, and focus on delivering top-quality internet and the tradition of successful independent providers owning an digital TV services to clients. important spot in the market. This took a lot of hard work from the entire organization This is what I admire about the broadband business in all areas of its business – from field operations, to today. It’s led by driven executives who bring diverse solutions engineering, to construction and account management. It to customers with unique business plans. It’s my hope that took refocusing on how to win, how to compete, and how to each company will continue to look at the industry’s history grow a new business. for guidance and advice on how to be most successful in I’m sure many UpStream team members would say these this endeavor. past four years were the hardest in their working careers Best wishes for a successful and healthy 2021! v and, possibly, the most rewarding. Creating something from virtually nothing is a special experience. I couldn’t be prouder of our team and this achievement. Today, I see this story Bryan Rader is the president of UpStream Network, a Single playing out in many other places in the broadband industry. Digits company. He can be reached at [email protected].

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Multifamily Broadband Council Transitions Its Membership to WISPA

Synergies between the organizations made the choice a natural one.

By Valerie M. Sargent

ith a new year comes new change for the cable operators and incumbent local exchange carriers members of the Multifamily Broadband Council. (LECs)/telcos. Without the competition fostered by ICTA W members, IMCC and ultimately MBC and other emerging technology companies, multifamily owners and their HISTORY OF MAKING A DIFFERENCE residents would have had little choice among cable and MBC has been the only trade association representing telecommunications providers. companies that deliver unique, personalized broadband Through the years, as the technological and regulatory solutions to multifamily communities, multiple-dwelling- barriers between the previously distinct cable and unit (MDU) properties and other multitenant environments. telecommunications worlds were reduced, the FCC had the Its members are nonfranchised companies and their vendors difficult task of establishing a regulatory framework that that specialize in deploying connectivity solutions for the would allow both incumbent LECs and franchised cable multifamily marketplace. operators to compete, while simultaneously promoting full In 2016, MBC sprang forth from the Independent Multi- competition from alternative sources such as ICTA, IMCC Family Communications Council (IMCC), created in 2001 and eventually MBC members. to advocate on behalf of independent broadband providers Over time, the organization had a hand in helping create and private cable operators (PCOs) doing business serving pro-competition carveouts for smaller, independent providers multifamily communities. IMCC was formed from the and providing representation for those providers and clarity prior organization, the Independent Telecommunications & for MDU owners on many issues, such as inside wiring rules, Cable Association (ICTA), founded in 1995. Its executive exclusive service contracts vs. exclusive marketing agreements, director, Bill Burhop, was instrumental in the organization’s OTARD rules, CALEA, mandatory access, retransmission inception in 1995 and was a leading advocate for the private consent, signal leakage, bulk billing, network neutrality, OTT cable industry during his long tenure with the organization. and Article 52 of the San Francisco police code. A large area of He retired from IMCC in 2013. Burhop led and won emphasis for the group was the development of a program of many battles before the FCC and lobbied on business and excellence laying out the performance standards that provided legal issues central to PCOs’ success with Congress, FCC a road map for members on how to meet multifamily owner commissioners and other important policymakers. expectations, enabling the creation of successful relationships in The goal for the collective entities has always been to that market for the benefit of residents. represent members that employ a variety of communications With its rich 25-year history, MBC went by different technologies to foster competitive communications and names but always served the same purpose: to function as alternative broadband choices while serving the residential the legal voice of independent broadband providers working MDU market and competing primarily with both franchised in the MDU space, to educate the FCC on the need for

14 | BROADBAND COMMUNITIES | www.broadbandcommunities.com | JANUARY/FEBRUARY 2021 smaller operators to have a say in the MBC members will have immediate access to all face of sweeping regulations being handed down to large franchise cable the member benefits and resources that WISPA companies and telcos, and to ensure the “little guy” didn’t get lost in members enjoy. the shuffle. The ongoing vision has always been to secure the viability of independent providers and to enhance competition in the multifamily/MDU Given WISPA’s larger size and its diverse competition that communities landscape while maintaining a good strong presence in Washington, D.C., need and deserve.” relationship with the primary industry the MBC board of directors decided it “All of us at MBC are excited to it serves. was in their members’ best interest to become part of the WISPA family,” said As with any industry dealing with dissolve at the end of 2020 and invest Dan Terheggen, president of the board technology, we are constantly reminded their resources with WISPA. To that for MBC and CEO of Consolidated of the speed at which innovations in end, the two organizations signed Smart Systems. “This timing is an broadband communications technology a membership option agreement in excellent opportunity for everyone in alter the competitive landscape December, meaning all active 2020 our industry to provide high-quality in which independent broadband MBC members have transitioned into service to adequately support the needs providers operate. Our members have WISPA and became WISPA members of those who are learning and working found success by anticipating future at the beginning of 2021. from home. We strongly believe that developments as opposed to reacting As the organizations continued to our combined efforts on behalf of all when it’s too late to change with the work together, it became apparent there members will be enhanced by MBC times. This has been evident from the were more opportunities for alignment. joining forces with WISPA.” early PCO days, to the addition of WISPA had more members starting to With MBC’s transfer of telephone and internet service, and now venture into the MDU space, yet no membership, WISPA will convene to the addition of streaming technology aspect of its membership was dedicated a multifamily group within WISPA needs calling for robust, reliable high- to multifamily needs. MBC had 25 to allow the robust conversation speed internet service. years of practical application, standards around multifamily issues to expand and experience working within that A TALE OF TWO and continue. Transitioning MBC environment and could share those ORGANIZATIONS members will have immediate access to decades of knowledge with WISPA. all the member benefits and resources MBC and the Wireless Internet Service With WISPA’s large membership that WISPA members enjoy and will Providers Association (WISPA) have base and D.C. presence for policy be able to participate directly in the worked together during recent years. matters, the concept of coming together multifamily-focused group. MBC partnered on WISPA’s annual further, especially as streaming and “At a time when more and more of WISPAPALOOZA conference and connectivity needs have grown for our livelihoods depend on adoption trade show, at which MBC hosted its multifamily clients and customers, and use of broadband at home, it is annual conference as the MDU track of offered only benefits for MBC imperative [that] all Americans, no WISPA’s yearly event in 2018 and 2019. members. They will have access to the matter where they live, have affordable (The large event was canceled in 2020 many benefits they will gain as WISPA options to access the internet,” said due to COVID-19.) The organizations members going forward, and the Aiken. “We are excited to bring MBC have similar membership bases, and reception from MBC members about members on board and know they will the synergy between MBC and WISPA the transition has been overwhelmingly only make our community stronger became more obvious over time, positive. than before.” v especially with more WISPA members entering the MDU space. A NATURAL FIT There have been some policy “The partnership is a natural fit,” said Valerie M. Sargent is a multifamily differences on a few items due to the Claude Aiken, president and CEO of speaker, trainer and executive consultant. nature of the customers being served WISPA. “WISPA and MBC members She served as executive director of (multifamily owners for MBC and are small, entrepreneurial operators that the Multifamily Broadband Council fixed-wireless customers in rural drive incredible value for consumers from 2008 to 2020. Contact her with markets for WISPA), but the types of and recognize the tremendous need questions at valerie@valeriemsargent. members are the same: independent to close the urban and rural digital com. WISPA director of communications broadband providers whose services divide. We’re going to do all we can Mike Wendy contributed to this article. compete with those of franchise cable to open up the multifamily market For more information, visit www.wispa. companies and telcos. to competitive entry and deliver the org or www.valeriemsargent.com.

JANUARY/FEBRUARY 2021 | www.broadbandcommunities.com | BROADBAND COMMUNITIES | 15 PROPERTY OF THE MONTH

Building a Foundation for a Broadband-Enabled Smart Community: The Reef at Winkler

The Reef at Winkler, a new luxury multifamily community owned by MJ Development Southeast and managed by Greystar in Fort Myers, Florida, leverages Boingo Wireless managed Wi-Fi services to deliver consumer broadband and smart-community applications. Our thanks to Matt Valentine, a partner at MJ Development Southeast; Ben Vander Velden, senior channel manager at Boingo Wireless; and Layne Spencer, vice president of sales and marketing for IOTAS, for helping assemble this profile.

By Sean Buckley / Broadband Communities

hen MJ Development Southeast apartments with home-automation technology. devised The Reef at Winkler, a 160- Other amenities include a beach-entry pool, Wunit, vacation-style community splash pad, Zen garden and state-of-the-art in southwest Florida, standing out from other fitness center with interactive online classes. properties was a key priority. Matt Valentine, Amazon is leveraging its partnership with a partner at MJ Development Southeast, said three smart-technology companies – IOTAS, during the OPTECH Eye Opener: Technology STRATIS IoT and Sentient Property Services – Case Study panel that this was necessary to bring its voice-enabled Alexa service to The because real estate competition in southwest Reef at Winkler as part of a broader initiative. Florida is fierce. This new service is also offered at two other “Southwest Florida is the hottest market for apartment complexes: Parq on Speer in Denver apartments in the United States,” he said. “The and The James in Annapolis, Maryland. amount of inventory that is coming into the Among the automation capabilities are a market and is in the market is extensive. We controlled entry gate that recognizes residents knew we had to create a differentiator to make and their cars. Smart automated luxury this property unique, and technology was the apartments can be managed using voice obvious answer for us.” commands or a smart device. Valentine added, “We are entering a Valentine said automation benefits multiple phase in the technology cycle where the way parties – residents, property managers people interact with their living space is and investors. “For anyone involved in the changing dramatically.” property, there’s a technology component that The Reef at Winkler is the first southwest specifically touches their everyday activity, Florida smart community to feature new luxury which for residents is home automation,” he

16 | BROADBAND COMMUNITIES | www.broadbandcommunities.com | JANUARY/FEBRUARY 2021 The Reef at Winkler is equipped with state-of-the-art technology to make it stand out to potential residents.

said. “This is a fully integrated home INSTANT-ON BROADBAND perfect match in Boingo Wireless. automation community, so residents At first, MJ Development Southeast Boingo has plenty of experience serving get a whole lifestyle experience with “reached out to a national cable multifamily housing properties. Today, the technology.” company that we thought would be the Wi-Fi provider serves more than The automation capabilities a good fit for the property, but those 300,000 residents across more than also benefit property management discussions fell apart fairly quickly,” 2,200 communities. personnel. IOTAS, a smart-home Valentine said, noting that the cable When it develops a managed Wi-Fi technology for multifamily rental properties, provides leak detection, operator couldn’t meet the property’s package for any multiple-dwelling- door sensors and other capabilities. needs. “So, we were in the market for unit (MDU) community, Boingo “IOTAS has done a great job a partner that would know the smart takes a comprehensive approach to partnering with property management devices were always connected, and understand what the client needs. software platforms we’re going to be that gave the residents an uninterrupted This includes providing not only using,” Valentine said. “The property experience with their Wi-Fi.” network connectivity, but also network manager can sit at his or her desk The developer soon found its operations and support. and manage a vacant unit, whether controlling the lights or the air.” Finally, investors have the potential to gain revenue benefits from the Wi-Fi network. For example, MJ PROPERTY OF THE MONTH HIGHLIGHTS Development includes the Wi-Fi and ~ The Reef at Winkler ~ smart-home technology package in the monthly lease rate. • Instant-on 800 Mbps broadband service “This is another differentiator as we • Wi-Fi calling bring this property into the market,” • Google Home and Alexa voice command capabilities Valentine said. “As we move forward, • Smart thermostats an investor might say ‘we want to • Connected door locks make the Wi-Fi or home automation a • Controlled entry gates with cameras and recognition technology profit center.’”

JANUARY/FEBRUARY 2021 | www.broadbandcommunities.com | BROADBAND COMMUNITIES | 17 PROPERTY OF THE MONTH

The Reef at Winkler boasts amenities that will appeal to residents, property management and investors.

“After we were introduced to been extending to new and existing what’s different about its implementation Boingo, we knew it was the best fit,” MDU developments. of Amazon Alexa for residential products Valentine said. “When you bring a Boingo’s network provides residents into its app is that, like the broadband property such as The Reef at Winkler immediate internet access at the time of connection, residents can access it as to the market, you have to deliver on move in, with speeds up to 800 Mbps. soon as they move into a unit. With the technology piece – and connectivity It also serves as the property’s wireless a voice command, residents can turn is key to that.” backbone for IoT applications. on lights, pick fan speeds, control the Ben Vander Velden, senior channel “Boingo’s product gives residents a temperature and lock and unlock doors. manager for Boingo, said that unlike seamless experience when they move “The way that Alexa for residential the local cable provider, Boingo could into the property,” Valentine said. “The is different from putting a device in a provide the network capacity to support ubiquitous Wi-Fi service Boingo was unit is that it is a fleet management- resident broadband and also support able to provide meets the needs of our style way to pull in full, always-on The Reef at Winkler’s smart-home community not only for the short term, voice capability,” Spencer said. “Alexa IoT initiatives. but also the long term.” becomes a part of the smart-apartment “We have a longstanding relationship PUTTING THE I IN IOT ecosystem.” with IOTAS, and that was how we were The Boingo network offers instant Property staff can automate vacant introduced to MJ Development,” he Boingo Wi-Fi to residents throughout units as well as common areas and said. “Because we came into the process common areas and powers home- amenity spaces and facilitate self- late, we had to scramble to put together automation technology, including guided tours that allow prospective a network design.” smart thermostats and connected door residents to understand the benefits of Vander Velden added that bringing locks. The 365/24/7 managed network living in a smart community. services to The Reef at Winkler also fuels every digital touchpoint within No less important is managing the posed other issues. “Getting a backhaul The Reef at Winkler: resident Wi-Fi, health of each unit and the property circuit out to the internet was one of IoT connectivity and home automation. itself. Property managers can set our bigger challenges,” he said. “As Leveraging the IOTAS application, notifications and alerts tied to the IoT always, when we deal with a unique residents get immediate control of system within units so they can get smart community like this, we need apartment lighting, and door locks ahead of potential issues such as leaks, to engineer service that exceeds the and climate control can be managed low batteries, humidity or temperature demands of the residents as we move from residents’ smartphones or virtual problems. into a 5G era.” assistants, including Google Assistant By taking a consultative approach One element of Boingo’s service is and Amazon Alexa. with property owners, IOTAS has that Wi-Fi is immediately available, Layne Spencer, vice president of sales developed a smart-community playbook, a trend that service providers have and marketing for IOTAS, said that which includes recommendations and

18 | BROADBAND COMMUNITIES | www.broadbandcommunities.com | JANUARY/FEBRUARY 2021 offers full project-management services With a voice command, residents can turn and best practices for a new build or a retrofit property. on lights, select fan speeds, control the “One of the opportunities is to have discussions with owners to understand temperature and lock and unlock doors. their operational objectives and what kind of experience they are looking to deliver for the resident,” said Spencer. “We want to make sure we make features will allow them to take a self- Any special requirements that some recommendations and bring guided tour and tell them about the the property had: things to the table that will meet the The property property and the technology features,” owner’s objectives.” required a next-generation, Valentine said. “Amazon Alexa has Spencer said the main challenge is managed Wi-Fi network that could begun some customization that will be “tackling the connectivity question.” deliver connectivity to residents specific to this community.” “When we start initial conversations in their units and throughout Property owners are navigating with owners and operators who common areas and power home- other challenges brought on by the maybe have decided to roll out smart- automation technology, including pandemic. Valentine said the spike home technology, they have not smart thermostats and connected in residents working from home was thought through the ins and outs of door locks. the biggest change. “When you have connectivity. This is where partnerships glitchy Wi-Fi or you don’t have enough SERVICES with folks like Boingo are key because bandwidth to work from home within they can provide the backbone to Services: Boingo offers residents up to an apartment, it can be detrimental not run all of the technology solutions, 800 Mbps broadband access and only for the resident but also for their including IoT.” Wi-Fi calling. Residents can use the company,” he said. MJ Development did not know broadband network to access online initially how it would structure the VITAL STATISTICS video services and common-area property with smart technology, wireless services at the clubhouse Property Description: The Reef at and Valentine suggested that other and other locations, as well as Winkler is a new-construction, developers should “start with the concierge and home-automation multifamily project in Fort Myers, technology.” Boingo and IOTAS services. The building manager also enhanced The Reef at Winkler property Florida, with pre-leasing and virtual tours available now. The smart gains access to a host of solutions, in two ways: providing a consistent including access control, home internet experience to the residents and community powered by Boingo features two- and three-bedroom monitoring and control, and customer support. building management systems. “We have miles and miles and miles luxury apartments with modern, of fiber in this project,” Valentine said. open living spaces. Amenities Provider choice: Boingo is the “If you don’t get the right connections include a beach-entry pool, splash main provider. pad, Zen garden and state-of-the-art or the right number of connections Do additional service providers fitness center. within each unit and MDF closet and operate separate broadband everything that goes back into the Demographics: Millennials and empty networks on the same property? property, it will be difficult to deliver nesters No. the end-user experience.” Greenfield or retrofit? Greenfield TECHNICAL SUPPORT NAVIGATING COVID-19’S Number of units: 160 Is the point of contact for resident EFFECT Style: Resort-style, mid-rise With its Alexa capabilities, The Reef technical support the property at Winkler can help potential residents Time to deploy: A four-phase manager, the service provider or a navigate the property during the construction process is underway. third party? Boingo offers 365/24/7 COVID-19 pandemic. In the first phase, the network was customer care to residents. completed. Pre-leasing of the first When residents are self-touring or BUSINESS touring with a lease agent, they can two buildings began in December. experience all voice capabilities and ask The third building will open in Which parts of the network are owned Alexa questions, such as “Why would I February, and the fourth building by the service provider, and which like living at The Reef at Winkler?” and will open in March. parts are owned by the property “What amenities are nearby?” Date services started being delivered: owner? The cabling infrastructure, “COVID-19 changed the way Boingo launched its network in including the Cat 5e, is owned by people approach a property, and these October 2020. MJ Development Southeast. The

JANUARY/FEBRUARY 2021 | www.broadbandcommunities.com | BROADBAND COMMUNITIES | 19 PROPERTY OF THE MONTH

electronics were installed and funded signals in each unit. Boingo uses LESSONS LEARNED by Boingo, so there’s no outlay to the Ethernet/Cat 5e to a switch in each What was the biggest challenge? development team. Boingo retains unit and to a Wi-Fi access point in Engineering the network for ownership of the electronics during each unit. There are four buildings connectivity demands of the 5G era the contract. After the contract and a clubhouse. Fiber comes to expires, ownership will revert to MJ the development from the street What was the biggest success? A Development Southeast. to the MDF closet. Then, there’s seamless launch and providing Is there any evidence that the network fiber connecting all the buildings. internet speeds of up to 800 Mbps helps attract residents, retain Within each building, there are What should other owners consider managed switches and an IDF residents, increase property values, before they get started on a similar closet in each building. Coming out or provide other benefits? As one deployment? Traditional Wi-Fi of the IDF closet, there is Cat 5e of the first smart-home communities and cable models no longer cut it going to a switch in each unit and in southwest Florida, The Reef at for today’s residents. To stay ahead, to an access point in each unit. Winkler will differentiate itself from leading property owners must turn other properties. Residents will be Vendors/products: to propertywide, managed Wi-Fi able to access high-speed Wi-Fi • Amazon (voice-enabled service) networks to adapt, compete and broadband and a host of home- • Boingo (Wi-Fi services) grow in the digital age and to create automation features upon moving • IOTAS (home automation) new sources of revenue. v into the property. • STRATIS IOT (automation software) TECHNOLOGY • Sentient Property Services (home Sean Buckley is the executive editor of Broadband architecture: Fiber to the automation) Broadband Communities. He can be building and Wi-Fi to distribute reached at [email protected].

Celebrating an industry visionary, mentor, educator and friend by carrying on his legacy.

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At The Broadband Group, connectivity extends beyond technology. It is about understanding how people live, how businesses work, and how communities thrive.

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20 | BROADBAND COMMUNITIES | www.broadbandcommunities.com | JANUARY/FEBRUARY 2021 AN INVESTMENT IN FIBER IS AN INVESTMENT IN US.

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When communities are connected, they thrive. With a commitment to offer broadband, businesses are able to expand as residents work from home and lives are changed. Over the past few years, we have helped many of your municipality peers successfully build their broadband capabilities and create the most positive impact on their communities. To transform yours, and to learn more about our other partner successes, visit us at calix.com/munis. INDUSTRY ANALYSIS

Fiber Trends: What 2021 Promises For the Broadband Industry

The 2021 broadband plans of incumbent telcos, independents, cable operators and electric co-ops will have a ripple effect on consumers and businesses.

By Sean Buckley / Broadband Communities

s the new year begins, Broadband the next decade if the telecom companies Communities is asking industry successfully execute on their plans,” said Acolleagues what will drive the broadband Jonathan Chaplin, equity analyst for New industry in 2021. If anything is clear about the Street Research, in a research note. “This would past year, the COVID-19 pandemic highlighted take FTTH availability from 25 percent to that broadband has gone from being a luxury to a 35 percent of households – we assume growth necessity for remote learning and remote work. in occupied households of about 1 percent.” Key to that is a fiber-based symmetrical Render predicts that the potential number of connection. Whether service is from homes that could be passed by FTTH will be an incumbent telco, a cable company, a even larger when taking into account that a host municipality or an electric cooperative, fiber has of emerging players are building out service to a ripple effect: It gives consumers higher speeds more homes. “There are more than 1,000 other and can serve as an economic development tool providers in the United States alone – some to attract and retain businesses. small, some medium, some large – that add RVA LLC noted that as of 2020, more than up to more than 10 million,” Render said. 54 million U.S. homes have been passed with “Tier-3 telcos, private competitive providers fiber, growing 10 percent over the previous year. both large and small, municipal providers, rural FTTH passes 50.6 million unique homes in the electric telcos, and cable MSOs are building out United States. Mike Render, president of RVA some FTTH.” LLC, noted that growth declined slightly in 2020 because AT&T met the 14-million mark TIER-1 TELCOS ADVANCE THE as part of its DIRECTV acquisition. FIBER BALL “In 2020, deployments were down a bit AT&T, Verizon and Lumen because larger providers, particularly AT&T, (CenturyLink) – companies hit their targets for meeting their FCC that collectively account commitment and paused,” he said. for most U.S. FTTH Nevertheless, New Street Research forecasts deployments – will lead that fiber-to-the-home (FTTH) deployments by FTTH growth. the top eight largest providers will ramp up in AT&T’s FTTH 2021 and beyond (see Figure 3). strategy is paying off: It “We now think that [homes passed] could had 273,000 AT&T Fiber John Stephens increase by 20 million to 60 million over net adds in the fourth CFO, AT&T

22 | BROADBAND COMMUNITIES | www.broadbandcommunities.com | JANUARY/FEBRUARY 2021 Fiber Broadband Now Passes Nearly 54 Million U.S. Homes Lumen and Verizon continue to be RVA Provider Study 2020 active. Verizon is focused on touting 5G, but is still growing Fios, adding Homes Marketed Homes Connected 95,000 Fios internet subscribers in the 60 fourth quarter. 50 53.8 M Homes Marketed “Total Fios 40 10% Growth in 2020 internet net additions of 30 22.5 M Homes Connected 95,000 was the 20 best fourth quarter 10 we’ve had since 2014 and reflected

0 '01 Sep '02 Sep '03 Sep '04 Sep '05 Sep '06 Sep '07 Sep '08 Sep '09 Sep '10 Sep '11 Sep '12 Sep 13 Sep' 14 Sep' 15 Sep' 16 Sep' 17 Sep' 18 Sep' Sep' 19 20 Sep' strong demand for our gigabit Matt Ellis offering,” said CFO, Verizon Figure 1. RVA LLC reports that as of 2020, more than 54 million U.S. homes were passed with fiber, Matt Ellis, CFO of growing 10 percent over the previous year. Verizon, during the earnings call. New Street Research forecast that “Verizon will continue to grow fiber quarter and more than 1 million for starting this year, from $2 billion to homes passed by [more than] 400,000 the full year. John Stephens, CFO $4 billion. homes per year.” of AT&T, told investors during the John Stankey, CEO of AT&T, As it sheds low-speed DSL company’s fourth-quarter earnings call told investors during the fourth- customers, Lumen added 46,000 new 1 that FTTH penetration rates are rising. quarter earnings call that “we’ll be Gbps fiber Quantum Fiber broadband “We had our best AT&T Fiber building somewhere around 2 million subscribers in the third quarter. Though fiber residential locations in that fourth-quarter net adds, even with it lost a total of 75,000 broadband neighborhood.” more challenges associated with the subscribers – a factor related to losing Chaplin agreed that AT&T could 95,000 20 Mbps and below subscribers pandemic, and penetration continues to ramp up deployments if it gets a and 42,000 20–99 Mbps subscribers – grow,” he said. “It’s now at 34 percent.” desired payback. He said that AT&T is it gained 62,000 100 Mbps subscribers. JPMorgan said in a report that to committed to 1 million a year but may “We win maintain growth, AT&T needs to accelerate in 2022 if it gets the returns double its fiber footprint over the next it hopes for in the markets where it has customers where five years by increasing fiber spending, deployed. we invest in fiber, simplify the experience and use micro-targeting in Diverse Types Of Fiber Providers Are Adding To The Total selecting the areas U.S. Cumulative Homes-Marketed By Provider Types we serve,” said Jeff RVA Provider Study 2020 Storey, CEO of Jeff Storey Lumen, during CEO, Lumen Tel - ILEC Tier 1 67.0% its third quarter Tel - ILEC Tier 2 & 3 12.2% earnings call. Private Competitive 8.5% Chaplin said, “We assume Lumen

MSO/ Cable 7.9% will expand sales within the 10 new markets it is targeting, which contain Municipality/ PUD 3.4% about 10 million homes.” Rural electric 1.0% TIER-2, TIER-3 TELCOS 0% 20% 40% 60% 80% 100% TYPE 2020 GROWTH DRIVERS STEP UP Rural Electric Very high Serving customers, Grid network operations, Protecting business, Subsidy Tel - ILEC Tier 2 & 3 High Finishing build, Serving customers, Protecting business, Subsidy Though not building at the same scale MSO/Cable Medium Overbuild (Altice and smaller players), Greenfields, Offloading heavy users as Tier-1 and rural and regional telcos, Private Competitive Medium Protect business (Wisps), Financial opportunity, Pushing industry (Google) Municipality/PUD/ Related Utility Medium Economic development and retention/ Smart City/ 5G wireless internet service providers Tel - ILEC Tier 1 Low/ Planning more Now clear that fiber protects the core business (WISPs) and electric cooperatives Figure 2. Tier-1 telcos (AT&T, Verizon, Frontier and Lumen) account for 67 percent of the FTTH build, are driving FTTH growth in less but Tier-2 and Tier-3 telcos have been very strong and added to the total FTTH market reach. populated markets.

JANUARY/FEBRUARY 2021 | www.broadbandcommunities.com | BROADBAND COMMUNITIES | 23 INDUSTRY ANALYSIS Verizon and AT&T reportedly account for Consolidated Communications, during the third-quarter earnings call. more than 30 million of the homes passed by Another Tier-2 telco ramping up FTTH is Frontier. As it moves through fiber; however, there are more than 8 million the Chapter 11 restructuring process, homes passed by smaller, mostly rural Frontier hatched a 60,000-home pilot FTTH plan. telecom companies. As part of its 2021 FTTH reinvestment initiative, Frontier has begun engineering for brownfield FTTH builds, which will upgrade Render said that diverse types territories. These Tier-2 providers will its existing copper network in of fiber providers are adding to the be joined by a host of Tier-3 telcos, select regions. total FTTH market reach. “While 67 municipalities and electric cooperatives. Frontier also is eligible to get more percent of the FTTH build has been “The eight largest FTTH providers than $370 million of FCC Rural Tier-1 telcos – AT&T, Verizon, Frontier will pass least another 20 million Digital Opportunity Fund (RDOF) funding over 10 years across California, and Lumen – Tier-2 and Tier-3 telcos homes over the course of the next Florida, Texas, Connecticut, West have been very strong,” he said. decade.” Chaplin said. “Most of the Virginia, Illinois, New York and Chaplin agreed about Tier-2 and incremental build will come from the Pennsylvania. Through its self-funding Tier-3 rural carriers’ role. smaller telcos, including Consolidated, modernization plan, Frontier has a “Verizon and AT&T account for Frontier, Lumen, TDS and others.” long-term target (within 10 years) to more than 30 million of the homes Consolidated set an aggressive pass more than 2.9 million homes passed by fiber; however, there are FTTH plan for northern New England with fiber. more than 8 million homes passed and other regions, leveraging its own Bernie Han, Frontier’s outgoing by smaller, mostly rural telecom capital and a $425 million investment president and CEO, said during companies that we tend to overlook,” from Searchlight Capital Partners. It the third-quarter earnings call that Chaplin said. “Roughly half of the plans to extend fiber services to 1.4 the FTTH service is attracting homes passed by smaller carriers were million consumers and small businesses. new subscribers. deployed by them, while the other half “We are embarking on a multiyear “While we are converting existing were built by Verizon as part of the investment initiative [in which] we copper customers to fiber, most of our initial Fios project and sold to them.” will upgrade [more than] 1 million early gains are coming from winning Consolidated Communications, addressable homes with fiber, enabling new customers,” Han said. “We Frontier Communications, Shentel, us to provide service across all three plan to use the learnings from this TDS Telecom and Windstream have put customer channels and deliver revenue pilot program to better implement together plans to expand their FTTH growth,” said Bob Udell, CEO of our larger-scale build beginning in 2021 and beyond as we convert more infrastructure to fiber.” Chaplin said, “We have assumed NEW FTTH DEPLOYMENTS ANNOUNCED Frontier builds to the low end of Households in millions, 2020-2030 their range in our base case, but if they targeted the high end, there AT&T 3.9 could be another 6 million FTTH Verizon 2.8 homes passed.” Lumen Technologies 6.8 Other Tier-2 telcos, including Frontier Communications 2.5-9.0 Shentel and TDS Telecom, are no Windstream 1.5 less aggressive. Consolidated Communications 1.4 Ziply Fiber 1.2 Shentel’s Glo Fiber initiative is TDS Telecom 0.1 focused on building out Virginia’s Shenandoah Valley. It passed about Total 20.1-26.6 9,200 new residential and small Source: New Street Research, Company Data business locations, with a total of 20,600 addresses constructed and Figure 3. FTTH will pass at least another 20 million homes over the course of the next decade. 22,300 passed overall.

24 | BROADBAND COMMUNITIES | www.broadbandcommunities.com | JANUARY/FEBRUARY 2021 By the end of 2020, Shentel planned and Blacksburg, Virginia, which Shentel, during the company’s third- to pass about 27,300 new target homes. include approximately 13,500 quarter earnings call. By securing new Glo Fiber franchises in additional targets. TDS Telecom, which is building the cities of Frederick, Maryland, “Glo Fiber has approved franchise out fiber in its existing footprint and and Charles Town, West Virginia, target passings of approximately in other territories as a CLEC, serves it added more than 15,000 new targets. 117,000 with the strong funnel of 280,000, or 34 percent, of its wireline Shentel also added three additional additional markets and our Edge service addresses with fiber. In its markets: Martinsburg, West Virginia; Out strategy heading into the fourth CLEC markets, TDS is seeing FTTH Lancaster Township, Pennsylvania; quarter,” said Jim Volk, CFO of take rates between 30 to 40 percent.

FTTH BUILDS BUOY BUSINESS SERVICES GROWTH

As service providers roll out FTTH, the networks can Stephens during the Morgan Stanley European Media, serve other purposes, such as providing wireless Tech and Telecom Conference. “So, I have a three-for- backhaul and business services. one in this integrated carrier environment that really Mike Render, president of RVA, said during the recent gives me a different opportunity than others.” Fiber Broadband Association webinar that business Smaller providers, and even municipalities that run services produce a large amount of bandwidth for the their own broadband networks, also are seeing the value fiber they deploy. in using a fiber network to serve multiple purposes. “Fiber providers pass almost 4 million businesses and Chattanooga’s Electric Plant Board’s (EPB) fiber connect about 1.5 million,” he said. “This is important to network not only provides better residential broadband, the bottom line of the Tier-1 providers, which get more but also benefits businesses and the electric grid. than three times the revenue per customer, especially Dr. Bento Lobo, First Tennessee Bank Distinguished because they are serving large enterprise customers.” Professor of Finance at the University of Tennessee- Chattanooga, found that 9,500 jobs were created over AT&T sees fiber creating a “three-for-one” revenue the past 10 years since EPB launched its fiber network opportunity. in Chattanooga. “I think about the fiber being part of my core “The fiber infrastructure impacted local economic transport network and serving business customers development in the form of business investments, and connecting to large business customers and new startups, real estate development, and taxes to small business customers, and then I think of it as an the extent of $1.4 billion,” Lobo said. “As much as $141 opportunity to connect the homes,” said AT&T CFO John million of downtown real estate development can be attributed to this fiber infrastructure.” Other communities, such as Wyandotte, Michigan, see a similar impact. Located in southeastern Michigan, Wyandotte operates Wyandotte Municipal Services, providing electric power through a municipal power plant, water service, and cable-based internet. Wyandotte plans to overbuild its cable network with fiber, giving nearly 13,000 homes and more than 700 commercial buildings access to 10 Gbps of internet, IP video and smart-home services. Paul LaManes, Wyandotte general manager, says the city’s plan calls for building out a medical campus that would run through Wyandotte and parallel to the Detroit River. “There are a lot of larger buildings being built on brownfield land that housed doctors’ offices that are part of the hospital, so this project is critical and is part of the city’s strategic economic development plan for More than half of U.S. businesses now have fiber available. Business the city,” he says. “There are several parties in the city services produce a lot of bandwidth for the fiber they deploy. that are going to be using what we are doing to attract Source: RVA LLC development and redevelopment in the city.”

JANUARY/FEBRUARY 2021 | www.broadbandcommunities.com | BROADBAND COMMUNITIES | 25 INDUSTRY ANALYSIS

“Our current Chaplin said these service providers Comcast was a standout, adding fiber plans include face challenges in serving rural areas 633,000 new subscribers, which LRG roughly 320,000 because they don’t offer the immediate said, “were more than in any quarter service addresses returns that come from larger urban in the past 15 years.” Charter and that will be built and suburban markets. Mediacom also had sizeable gains over a multiyear “We would caution that plans during the quarter, adding 537,000 and period,” said Vicki announced by struggling or recently 29,000 customers, respectively. Villacrez, senior restructured wireline companies should However, the top telcos added about vice president of Vicki Villacrez, Senior be viewed differently from plans 210,000 subscribers in the third quarter. finance and CFO VP-Finance and CFO, announced by Verizon in 2006 and Chaplin said telcos’ copper-based of TDS, during TDS Telecom AT&T in 2016,” he said. “They are DSL losses are continuing to widen as the company’s entering markets that are for the most more families work and conduct school third-quarter earnings call. “We have part less attractive than markets entered at home. “Telcos are losing non-fiber completed construction of 40,000 fiber previously and lack the track record or broadband subscribers at a pace of close addresses in addition to the 40,000 the resources of those companies.” to 2 million a year,” he said, adding addresses we turned up in 2019 related that the losses are “accelerating at a to this program.” TELCOS’ NON-FIBER fairly alarming rate.” Kinetic by Windstream added LOSSES MOUNT But even in areas where telcos 53,000 broadband customers, putting By using their nearly ubiquitous HFC have launched FTTH, cable remains it well on track to meet its 2020 goal of plant to deliver up to 1 and 2 Gbps, a formidable competitor. Altice has 60,000 net adds. cable operators enjoy a lead over telcos seen higher broadband penetration Jeff Small, president of Kinetic in non-FTTH areas. According to than Charter and Comcast despite by Windstream, said in a release that Leichtman Research Group (LRG), the competing with Verizon Fios in New the company launched a “$2 billion largest cable companies added about York. Likewise, Charter reported initiative to continue growing our fiber 1.32 million subscribers for the third broadband subscriber growth as AT&T footprint and gigabit internet service.” consecutive quarter. deploys fiber in its footprint.

RETIRING DSL

When AT&T announced it would no longer accept new October 1, it ceded its historic telephone properties to its DSL customers, it gave cable another opportunity to cable company competitors.” take market share in markets where AT&T does not offer Dawson suspects AT&T won’t be the only provider FTTH. The telco justified its decision because it offers to retire DSL. “AT&T is the first big telco to announce the consumers higher-speed FTTH and fixed wireless. end of DSL support, but it won’t be the last,” he said. “We are focused on enhancing our network with “I find it hard to think that Verizon won’t soon follow more advanced, higher-speed technologies [such as] now that AT&T has taken a public stance. CenturyLink fiber and wireless, which consumers are demanding,” management has made it clear that it would love to get AT&T said in a statement. “We’re beginning to phase out out of the copper business.” outdated services [such as] DSL, and new orders for the Though Verizon hasn’t signaled plans to shut off service will no longer be supported after October 1.” DSL, it has replaced copper with fiber in some areas. For AT&T added that “current DSL customers will be able instance, in an FCC filing, Verizon said it will “retire the to continue their existing service, or where possible, copper facilities at specified addresses in the fourteen upgrade to our 100 percent fiber network.” (14) Washington, D.C. wire centers.” Doug Dawson, president of CCG Consulting, said in Meanwhile, Lumen separated the traditional copper a blog post that AT&T’s move is a blow to consumers network business into the CenturyLink brand. Industry in places where only cable is present. Customers might watchers say this could better position the company to see higher prices, poor network performance and sell the struggling copper assets. repair delays. Lumen hired financial advisers to help it decide on “Unless some other ISP is building fiber, you no longer any asset sale. “We’ve been open to looking at assets have a choice of broadband provider – it’s the cable like our consumer business,” said Lumen CEO Jeff Storey company or nobody,” he said. “When AT&T announced during the company’s first-quarter 2019 earnings call. “We that it is no longer connecting DSL customers as of have now engaged advisers to assist us in that review.”

26 | BROADBAND COMMUNITIES | www.broadbandcommunities.com | JANUARY/FEBRUARY 2021 Though telcos set an aggressive “Similar to our rapid deployment strategy is Altice USA. During the FTTH plan, Chaplin said cable has of 1-gig across our national network third quarter, Altice USA reported that “plenty of time to respond to the in 2017, the beauty of 10G is that it’s the portion of new customers taking competitive threat.” extremely scalable within our existing FTTH in areas where it’s available is “Before the new deployments have network infrastructure,” said JR already at 44 percent. The company gained much traction, Altice should Walden, Mediacom CTO, in a release. ended the third quarter with more than have completed [its] own FTTH 16,000 customers and passed more deployment; DOCSIS 4 deployments CABLE COULD EYE FTTH than 900,000 homes with FTTH. should be well underway, and the three While DOCSIS gets cable higher Dexter Goei, public cable companies should have a speeds, will cable consider an FTTH CEO of Altice fully developed wireless offering with path? This question arises as more USA, noted, “Sixty their own networks deployed,” he said. consumers and businesses demand percent of our symmetrical bandwidth – a challenge fiber gross adds are CABLE PUSHES HFC’S for existing HFC plant that has been taking the 1-gig BOUNDARIES largely asymmetrical. product, which is a As they look to secure their broadband Chaplin said there are two higher proportion lead, cable MSOs have coalesced strategies: Altice is deploying FTTH in of customers Dexter Goei, around a transition path that enables the Cablevision footprint, and others taking the 1-gig President, Altice gigabit delivery over existing HFC. are focusing on using DOCSIS 3.1, 4.0 on our HFC plant, While FTTH is being deployed and full duplex capabilities to deploy representing a in greenfield developments, cable higher-speed services on their existing great monetization opportunity.” operators are leveraging DOCSIS 3.1 cable plant. Regional cable operators will also and emerging DOCSIS 4. DOCSIS 3.1 “At some point in 10 to 20 years, have an FTTH role. The National increases prior HFC network capacity cable infrastructure will bring fiber to Cable Television Cooperative (NCTC), by more than 50 percent. Likewise, the home or fiber so close to the home which represents 700 smaller cable and DOCSIS 4.0 technology supports up to that we’ll call it fiber to the home,” he broadband operators, sees an eventual 10 Gbps downstream capacity and up said. “With all of the electronics in the path for smaller operators. to 6 Gbps upstream capacity, allowing last few hundred meters having been Rob Smith, senior director of for multi-gigabit services over existing removed, the path toward that will be procurement for the NCTC, says HFC networks. pretty gradual.” FTTH enables cable operators to Charter, for one, sees the potential He added that the near-term lower maintenance costs initially for to enhance network speeds. scenario will focus on DOCSIS greenfield deployments. “We’re continuously increasing the 3.1 and 4.0. “The cable industry is “As those members’ cable plants capacity in our core and hubs, and fairly confident it will get to 10G age, they are looking at greenfield areas augmenting the network to improve symmetrical over the course of the next to deploy technology that will give speeds and performance,” said Tom three to four years,” Chaplin said. “If them the features they need without Rutledge, CEO of Charter, during its getting DOCSIS 4.0 deployed in the worrying about constant network third-quarter earnings call. “In the field takes too long, the impetus to upgrades,” he said. “Some of our near term, we have a large opportunity bring fiber closer to the home might members want to consider fiber to the to improve throughput and latency by kick in, but if cable operators can push home since it’s relatively future-proof.” continuing to use already-deployed DOCSIS 4.0 and full duplex, most of In brownfield areas, cable is DOCSIS 3.1 technology. By allocating them will go down that path.” considering a similar path. more plant spectrum to DOCSIS 3.1 Render posed the idea that cable “Other cable operators are deploying IP services, we have the ability to offer could use FTTH to upgrade power FTTH in brownfield areas to play a symmetrical gigabit-plus speeds.” users. defensive role,” Smith said. “When a Rutledge added that DOCSIS “There’s not a lot of overbuilding disruptor like a WISP or an overbuilder 4.0 will give it enough room for 10G yet, but many cable companies are comes into their territory, they will speeds. “The DOCSIS 4.0 specification deploying FTTH in a lot of greenfield determine if PON is the right move.” v allows for multiple paths through markets,” he said. “FTTH can be 10-gig and higher speeds, including used by cable companies to conduct Full Duplex DOCSIS and Extended offloading in certain places where a Sean Buckley is the executive editor of Spectrum DOCSIS,” he said. system is being destroyed by a heavy Broadband Communities. He can be Similarly, Mediacom, in partnership user in an area; they can opt to build reached at [email protected]. with CableLabs and NCTA, conducted out FTTH to that person.” its 10G smart-home field trials in The only multiple service operator Ames, Iowa. (MSO) pursuing a large-scale FTTH

JANUARY/FEBRUARY 2021 | www.broadbandcommunities.com | BROADBAND COMMUNITIES | 27 INDUSTRY ANALYSIS

Digital Disruption, the Pandemic And What It Means to Carriers

The COVID-19 pandemic has driven carriers to provide the platform for essential services such as telehealth and e-commerce, but providers must increase capacity and advance automation to keep pace with demand.

By Tony Thakur / Great Plains Communications

mid unprecedented disruption and network and the internet became the lifeline to digital demands the COVID-19 business continuity. Apandemic placed on communication E-commerce, curbside pickup and Wi-Fi: networks throughout 2020, telecom carriers have Consumers have become comfortable digital proven how resilient they can be. There were shoppers. Health concerns and restrictions internet slowdowns, yet telcos increased network may have been the impetus to a strong shift to bandwidth as much and as quickly as possible to e-commerce for products previously purchased at meet workloads forecast to occur sometime in brick-and-mortar stores. At the same time, many the future. consumers are also making a conscious effort Typically, with change comes a period of to support local businesses and their neighbors adjustment and then assessment before there’s during the pandemic. acceptance of a new reality. Keeping that process Both factors point to a future consisting in mind, now is the time to evaluate and ask of a possible hybrid shopping model involving whether the changes that have occurred – the a combination of e-commerce and a local abrupt pivot to working and learning remotely retailer focus. To stay relevant, businesses and and the reliance on telehealth, e-commerce and traditional brick-and-mortar retailers must adjust other models – will continue as the new normal. their products, services and selling methods to DISRUPTIONS THAT accommodate contactless payments in stores TRANSFORMED and add e-commerce options. Many have For telecom carriers, here are some disruptions added new capabilities, such as curbside pickup that have the potential to become valued and home delivery. To accommodate all these innovations in people’s lives: changes, businesses must have sufficient and flexible bandwidth and reliable Wi-Fi that allows The hybrid workplace: Many organizations consumers to text when they’ve arrived to pick up were abruptly forced to send employees home purchases or meals. and conduct as much business as possible remotely. Employees who once accessed business Virtual learning: Making the virtual learning applications and workloads by connecting to the experience easier and better for students and corporate data center suddenly had to work from their families has been a challenge. In some home and access applications and workloads areas, remote learning isn’t easy to access. Many via the cloud – private, public and hybrid. The families without internet have had to sit in a car

28 | BROADBAND COMMUNITIES | www.broadbandcommunities.com | JANUARY/FEBRUARY 2021 in a parking lot attempting to access Wi-Fi. Yet online learning platforms are proving to be a convenient knowledge resource for many. As comfort with online education grows, virtual workshops and online classes from institutions around the country, even around the world, are vital for the future of education. Along with greater bandwidth requirements, students e-learning and spending more time online adds an increased need to monitor network devices and protect children from specific web content. Rx: telehealth option: Telehealth and telemedicine have been a necessary and lifesaving shift for many people during the pandemic and will likely continue as a permanent form of health care. No driving, parking fees or sitting enable industries such as health care the coverage area, users can get 10 in waiting rooms – simply log on or to provide secure networking. SD- times the bandwidth at significantly pick up the phone to reduce risk and WAN can use multiple accesses such lower latency. Essentially, users can stay proactive with ongoing health as internet, Ethernet, and wireless stream favorite movies or songs in conditions. Patients, physicians and to the office or home to improve the palm of the hand! As IoT devices medical personnel have grown more reliability by routing traffic in case and applications become a larger comfortable with telehealth practices there is a failure. part of people’s everyday lives and and remote monitoring devices. Fast Another feature of SD-WAN businesses, network operators must and reliable internet access is crucial to is its monitoring capability to be prepared to build and deploy 5G the ongoing success of telehealth. In manage application performance. networks to support their customers’ the future, the role technology plays in Now, end users can monitor their growing connected lifestyles. health care is projected to increase. application performance and usage There’s no doubt that the pandemic for popular applications such as HIGH-SPEED BROADBAND has accelerated and expanded digital Zoom. Typically, this technology AVAILABILITY transformation. Without warning was used by larger enterprises with or the typical time frames to Moving from disruption to innovation main offices and branch locations calls for high-speed bandwidth prepare, carriers were called upon to to securely communicate. Now it is immediately respond with the critical technology. High-speed broadband being introduced into home offices availability, connectivity, speed, high-speed bandwidth needed to keep for easy and secure communications. the world connected and productive in reliability and the network technology • Cloud connectivity: Users this unprecedented time of crisis. that enables it is the bridge from today also need to access the People’s lives have no doubt disruption to innovation. Networks private or public cloud. This is changed permanently because of the must evolve by increasing capacity where such applications as Office pandemic. Yet as they move through and advancing automation. Key 365, Salesforce and others live. the chaos, people are finding that technologies such as software-defined In the past, applications lived in these life-changing technologies are wide-area networking (SD-WAN), private data centers operated by enabling new and, in many cases, better cloud connectivity and 5G will support enterprise companies. With cloud and more secure ways of working, the digital transformation: connectivity, customers can access learning, providing health care and • SD-WAN: A traditional WAN AWS, Azure and Google clouds. entertainment and more. People may designed to route traffic through a Remote users can get access to and find themselves embracing the new corporate data center will struggle to from their home offices to the cloud digital world! v handle the volume of data, voice and more easily and securely. video traffic occuring now, especially • 5G’s role: 5G is another technology from more remote locations that enables remote users to access Tony Thakur is the CTO of Great Plains connecting to the cloud. Latency their applications from wherever Communications, a Midwestern regional and poor performance can be they are. 5G adds significant provider that serves business, carrier and drawbacks. SD-WAN technologies bandwidth and speed. Depending on residential customers.

JANUARY/FEBRUARY 2021 | www.broadbandcommunities.com | BROADBAND COMMUNITIES | 29 INDUSTRY TRENDS

Q&A with Gary Bolton of the Fiber Broadband Association On Making Fiber-Based Broadband the Nation’s Priority

The new head of the Fiber Broadband Association shares his vision for the industry.

he Fiber Broadband Association (FBA) named Gary Bolton its new president Tand CEO in early November. He brings a wealth of communications industry experience and joins the FBA after serving as vice president of global marketing and government affairs at ADTRAN. Prior to ADTRAN, he served on the executive team for two successful venture- backed broadband startup companies and held executive and senior management roles at Ciena and Nortel. An adjunct professor in the College of Business at the University of Alabama in Huntsville, Bolton has been deeply involved with the FBA and chaired the finance and audit committee, the public policy committee and the marketing committee. He also served two terms as board treasurer and was vice chair of the board. He succeeds president and CEO Lisa Youngers. After the FBA appointed Bolton as its CEO, Broadband Communities had the Gary Bolton, Fiber Broadband Association opportunity to speak with him about his plans and what trends he is seeing emerge in the broadband industry. Following are highlights of the conversation. and Ciena, and mid-sized companies such as ADTRAN but also a couple of startups. BROADBAND COMMUNITIES: Tell us about The first startup I was part of was Catena your background. What kinds of experiences Networks, which debuted when the have you had in the telecommunications internet was coming together. At that industry, and how does that experience shape time, there were two separate networks: the your perspective on the FBA? voice network and the data network. We GARY BOLTON: I have been around this were developing a chip – the foundation industry for quite a while. Everything from of our company – that included a DSL working at big companies, such as Nortel modem and the voice codecs. But at

30 | BROADBAND COMMUNITIES | www.broadbandcommunities.com | JANUARY/FEBRUARY 2021 the time, data was a separate, As you start to see communities and small unregulated affiliate, and voice was regulated. During the first board providers pursue fiber, it will spur more meeting, the board asked us what we were excited about. I said, “We investment by the large companies. have the guys who can make this chip.” And then they asked, “What are you worried about?” I said, “No one can buy it.” This was because biggest growing segment of that is are saying, “Our valuation will be it had an unregulated part and a electric co-ops and municipalities measured by our infrastructure regulated part. that realize they must take matters assets, and if we don’t have miles I’m proud of the fact that at into their own hands. What of fiber in the ground, we’re Catena Networks in 2002, we were excites me about the FBA is that going to lose valuation and able to convince the FCC, then it represents the entire ecosystem. subscriber growth.” I think we’re chaired by Kevin Martin, to adopt It offers the opportunity to be going to see cable operators move our broadband proposal. That was the single voice for fiber at a into fiber access. a big moment for me – seeing how time when our nation needs it On the supply side, there are a a tiny startup could have a big most. As the new presidential lot of different innovations. One voice in Washington. I dabbled in administration comes in, there of the things I love about the FBA regulatory issues at Nortel, but that are some infrastructure bills that is that our annual conference accelerated at Catena. Even though are already in flight in both the allows attendees to see all the new for the past three decades I have House and the Senate. Right now, innovations. For example, you can been the vice president of product we’re in the middle of the Rural look at new micro-radius bending management and marketing or Digital Opportunity Fund (RDOF) methods on fiber cable and different both, I have always had a strong auction, which will provide another ways to combine cable strands to interest in advocacy. $16 billion. RDOF is moving from make it lighter weight and higher BBC: How do you see the fiber-to-the- CAF II, where it was largely the density. Then, if you look at the home (FTTH) industry shaping up price cap carriers, to now awarding optics and electronics that have in 2021? fiber networks and providing a lot narrower beam lasers, you’ll see GB: We’re at the beginning of the fiber to smaller providers. There are endless possibilities on the capacity investment cycle. The pandemic 386 bidders representing more than and performance of the network. has shot that full of steroids and 700 companies. We’re going to see BBC: You mentioned cable operators is accelerating this investment a big acceleration. could ramp up FTTH deployments. cycle. Other things globally, such The one thing Tier-1 providers Do you think we’ll see cable deploy as Brexit, are relevant. When Boris respond to is competition. As FTTH outside of greenfield markets? Johnson became the U.K.’s prime communities and small providers GB: minister, he said something to get into this, it will spur more Cable has been sitting in the the effect of, “It’s great we exited investment by large companies. catbird seat; cable companies were the European Union, but we only Some of the Tier-1s are looking making minimal investment yet have 7 percent fiber penetration, to go beyond merger obligations dominated the broadband market so we better turn that around.” to looking at where they need to because they were able to have That has kicked off a fiber firestorm invest. On top of that, we have high downstream bandwidth with across Europe. We’re seeing a lot been wondering when the cable relatively low investment. This of alternative providers in Europe operators will start participating in all changed with the pandemic. building FTTH networks. fiber. Cable has been sitting back With all the applications going In my most recent years at with its big roll of duct tape, saying symmetric, the world realized ADTRAN, I spent a lot of time “For $15 per home passed, I can put where the internet is going post- with communities. They would more DOCSIS duct tape on this pandemic. The studies I have seen come in and say, “I don’t know and crush the competition.” What say that two-thirds of folks working what fiber is, and we’re not getting the FBA sees is that investment from home today will continue to any economic development by smaller providers and new work from home. About a third of projects.” That spurred a movement investments by Tier-1s and the people want to 100 percent work with a lot of new providers. There Tier-2s that are emerging from from home. A third of people want are about 1,100 fiber service restructuring are wake-up calls to go into the office and work from providers across the nation. The for the cable guys. The cable guys home when they want, and another

JANUARY/FEBRUARY 2021 | www.broadbandcommunities.com | BROADBAND COMMUNITIES | 31 INDUSTRY TRENDS With broadband being the next utility, this with its fiber toolbox to enable more providers to deploy fiber. For it makes sense that electric co-ops are instance, Rocket Fiber in Detroit, which was a mortgage lender, came stepping up to provide it when incumbents to the meeting and learned how are not delivering the kind of bandwidth to become a fiber and broadband provider. We are providing the communities need. same type of opportunity to electric co-ops and municipalities or anyone that wants to get into this business. They have a one-stop shop to see everyone in the ecosystem. third like to go into the office. In co-ops are participating in the short, working from home is not RDOF auction. If you look at BBC: We’re seeing partnerships between going away. What work-from-home who they are as utility providers, co-ops and telcos as well as between people have realized is that when they are serving their neighbors. telcos and communities, such as the you have your kids on video, you Their sole purpose is to be a partnership between Consolidated end up doing broadband rationing utility. It makes sense that with and the community of Chesterfield, in your house. It’s like, who is using broadband being the next utility, New Hampshire. How important are all the hot water? That has pumped if incumbents do not deliver the these partnerships to advance FTTH up the need for high-quality kind of bandwidth communities and broadband availability overall? bandwidth. Suddenly, the upstream need, electric co-ops step up and do GB: There’s not any municipality or component is what’s breaking the that. We have seen various models. utility that’s dying to become a cable network. Cable guys are at Here in Huntsville, Alabama, broadband provider without a the ready to move to fiber access. Huntsville Utilities put in dark fiber necessity. Here in Huntsville, the We have seen that some of the cable that is ready for use. Google Fiber city reached out to the current people have jumped into the RDOF is leasing the dark fiber, and it’s up providers and asked, “Can you auction. This is the first signal. to Google Fiber to connect from help us out?” The problem is that More recently, a Wall Street equity the pedestal to the home and sell the larger the provider, the more report from New Street Research and manage the retail service. It’s it focuses on the business case and broke down the financial impacts a no-brainer. Huntsville Utilities looks at competitive forces to drive that the cable companies will suffer is equipped to put conduits in the its business. The business case in Huntsville is more of a way to if they don’t start deploying fiber in ground and deploy fiber. It also make sure the city pays for fiber. a big way. has the poles and rights of way. However, Huntsville Utilities did What Huntsville Utilities is focused BBC: It’s clear the FTTH landscape is not want to worry about being a on are the needs of the community. changing as community broadband retail service provider. I think we will see a lot more public/private partnerships. As providers – including electric Electric Power Board (EPB) has more communities step up, we’ll utility co-ops, municipalities and transformed Chattanooga, which see other providers facilitate that. developers – deploy fiber. How much became one of the first gigabit cities Most communities would welcome of an impact will electric utilities and is now a 10 Gbps city. EPB a partnership with someone who make in the FTTH market? was able to prove it could beat its has a track record and a provider GB: The Rural Utilities Service business plan in a fraction of the that has the wherewithal to do this (RUS) has focused on fiber with time it predicted. The broadband rather than being left to figure it out ReConnect. Likewise, the FCC’s revenue not only creates economic on their own. RDOF has focused on fiber. If you development opportunities for look at the budget, you get 100 the community, but also starts to BBC: In your opening letter upon percent of the budget if you do a subsidize the power part of the becoming the president and CEO of gigabit symmetrical network, which business. EPB can now keep super- the FBA, you said you are ramping is fiber, versus 10 percent if you do low rates for power because it has up advocacy at the federal, state something between. The FCC and a robust broadband service. When and local levels, driving awareness, Congress have received the message you see these models come out, investment and funding to advance that fiber is the right investment. every utility is scratching its head FBA’s goal of accelerating fiber From an electric co-op saying, “Well, why would we not deployments. Can you walk us perspective, about 200 electric do this?” The FBA is facilitating through some of those plans?

32 | BROADBAND COMMUNITIES | www.broadbandcommunities.com | JANUARY/FEBRUARY 2021 GB: The pandemic has disrupted the U.S. government invest $100 there’s a global race to 5G, and 5G our business model. Our current billion in fiber infrastructure so the doesn’t happen without fiber. It’s business model is that we subsidize United States can increase its global important that the United States is 70 percent of our members’ dues competitiveness and close the successful in its 5G rollout. It can through things such as our annual digital divide. be successful only if we blanket our conference. With the pandemic If you think about COVID-19 country with fiber. impacting the annual conference, relief, it is a race. How do you get it forces us to look at different your COVID-19 relief? Well, you BBC: With Joe Biden in office, how will business models. My No. 1 priority need to have a broadband access the regulatory landscape shift? was to make the virtual event the platform because you must GB: There will be a shift, and we best event, and we met that goal apply online. It’s ridiculous that need to make sure that pivot is with 100 speakers and 30 sessions. the people who need it most don’t focused on fiber. What we have When I start looking at our identity, have access to even apply for it. is bipartisan support for fiber and one of the things we look at for We’re at the beginning of a big infrastructure. These things ping- our members is how to provide the fiber investment cycle to drive pong back and forth depending greatest value. This will include that. We’re also going to see a new on what party is in power. The areas surrounding education, FCC. As we move into the new FCC has been productive under training, workforce development administration, there will be a the leadership of Chairman and investment. We have brought in new agenda, and we want to have Ajit Pai. We think there’s an top-notch Washington lobbyists to a strong voice to make sure we’re opportunity for the next FCC supplement our policy team as well focused on lowering deployment to be just as productive if not as our regulatory team. We want impediments as well as increasing more productive. To do that, we to be a heavyweight in advocacy. subsidies and accelerating fiber need the infrastructure to advance We believe that it’s important that deployments. On top of that, our nation. v

JANUARY/FEBRUARY 2021 | www.broadbandcommunities.com | BROADBAND COMMUNITIES | 33 CONFERENCE COVERAGE

Fiber’s Community Presence Transforms Consumer, Business Opportunities

The first virtual edition of the Fiber Broadband Association’s annual conference, Fiber Connect, held in December, showcased many fiber community success stories and a variety of innovations that promise to expand fiber deployment. The show highlighted how communities are banding together and working with state and federal agencies to build out broadband in underserved communities. It also brought to light the need to increase bandwidth and provide flexible service during the pandemic, along with the problem of permitting obstacles and other challenges.

By Sean Buckley / Broadband Communities

Pandemic Drove Unexpected Broadband Growth s the COVID-19 pandemic took hold network spending, the United States was able to in March, it created a new challenge maintain network speeds and reliability. Afor service providers to allocate enough “America’s internet infrastructure – thanks capacity to support a surge of bandwidth needs. in large part to FBA members building out Network traffic increased by 30 to 40 fiber – is why we were able to keep chugging percent after stay-at-home mandates forced along as people started working from home, many employees to work from home, schools home schooling and doing telehealth,” he said. to shift to remote learning, and health care “Europe and China had a lot of slowdowns, so providers to ramp up telehealth visits. the incentives we have created are what allowed FCC Commissioner the [United States] to withstand a massive surge Brendan Carr said in traffic.” network growth surpassed providers’ network BALANCING SYMMETRICAL NEEDS planning forecasts. “This is To support two-way applications such as the type of traffic growth Zoom, there has never been a greater need for that network planners symmetrical bandwidth – a concept touted by weren’t expecting to see for former FCC Chairman Ajit Pai’s Keep America about two years,” he said. Brendan Carr Connected pledge. Carr surmises that FCC Commissioner “We were cognizant that there was because the FCC promotes going to be a lot of uploading of video and a regulatory environment that encourages fiber other content,” Carr said, adding that “we

34 | BROADBAND COMMUNITIES | www.broadbandcommunities.com | JANUARY/FEBRUARY 2021 need to be balanced because it’s not a EMBRACING ACCESS DIVERSITY networks by creating timelines for local zero-sum game.” Though fiber is the ultimate broadband approvals and preventing large fees. Carr would like to provide everyone mechanism, the FCC remains open “Our focus early on is how [to] access to fiber-based 1 Gbps service, to other technologies, such as wireless make it easy, so these dollars go more but he wants to make sure that raising broadband and low-Earth-orbit (LEO) directly one to one into the ground the broadband speed standard does not satellite. These technologies have been rather than getting wasted with red push away competitors. touted as alternative methods to get tape and other government fees,” In 2015, the FCC made 25/3 Mbps broadband into hard-to-reach areas. Carr said. the broadband standard, replacing Several wireless broadband and LEO the previous standard of 4/1 Mbps, However, rules related to building providers, such as Starlink, bid in established in 2010. When it issued network infrastructure on federal lands the Rural Digital Opportunity Fund its annual 2020 broadband report, the remain challenging. “It’s outside the (RDOF) auction. FCC said the gap between urban and jurisdiction of the FCC, but I am a rural Americans with access to 25/3 “There are some unique advantages little disappointed that we’re not faster Mbps fixed broadband service had to fiber, but I am fairly optimistic at the federal government [because] a been nearly halved, falling from 30 about the new generation of low-Earth- lot of network builds in rural Western orbit satellite,” Carr said. He added, percentage points at the end of 2016 to communities are on federal lands,” “incentivizing competition from fixed just 16 points at the end of 2019. Carr said. wireless and low-Earth-orbit satellite “I want everyone to have Likewise, the FCC acknowledges will have a good effect in disciplining symmetrical gigabit speeds, but the the challenges providers have with challenge is when we modify our the market, and I think we have to be getting permits to build along and policies to support that, it could have open to other technologies being part across railroad crossings. “Railroad some distorting effects,” Carr said. of the solution in expensive areas.” “When you raise the standard to let’s crossings are a huge headache for say 100 Mbps, there’s a risk that you OVERCOMING DEPLOYMENT fiber builders,” Carr said. “They are take communities that have 25/3 or 50 SPEED BUMPS outside our jurisdiction, but maybe Mbps and upgrade to 100 Mbps, [but] Besides supporting various last-mile there’s more we could do to get some we’re stuck with communities that have methods, the FCC is easing regulatory guardrails on that process, which slows 1 to 2 Mbps or dial-up.” restrictions for providers building people down.”

RUS’ Rupe: Broadband Infrastructure Builds Need Public, Private Support Having grown up that people need to thrive in urban per month at Treasury rates locked in and lived in rural America.” for the entire term. Wyoming, Chad RUS provides three major funding “It’s a strong source of capital to Rupe, the former buckets: deliver on these services,” Rupe said. administrator for • 100 percent grant: This provides 75 “We’re being good stewards of taxpayer the Rural Utilities percent of the financing costs for funds at low interest rates and giving Service (RUS), has the construction of a project. providers a cheap source of capital to seen firsthand how • 50/50 loan/grant combination: This build their economic development equal broadband Chad Rupe, former structure.” RUS administrator covers up to 100 percent of the access makes a construction cost. FIBER TAKES CENTER STAGE community attractive. • 100 percent loan: This can pay for As rural telcos and electric cooperatives RUS is a voice for rural communities 100 percent of the cost of a project. expand broadband availability, RUS that want the same broadband amenities Rupe said that although the 100 is receiving a lot of fiber-to-the-home available in large NFL cities. However, percent loan option has not been (FTTH) proposals. An FTTH network building broadband infrastructure used as much as the grants, “It is a can satisfy high-speed needs today and demands cooperation between good supplement for the construction grow as those change over time. communities and providers. financing rural providers seek, “We provide a broad array of “These builds require cooperation especially as they partner up with the options for entities [...] to apply and between public and private stakeholders FCC on the Connect America Fund are committed to providing service that may have different priorities other and the RDOF auction.” throughout the lifespan of the assets than building out rural broadband,” In the past fiscal year, RUS doled being used,” Rupe said. “A lot of this has Rupe said. “But without broadband, out $10 billion in financing for rural been fiber, which is a long-term solution.” farmers and ranchers won’t be able to America. The average amount of an However, RUS provides loans deliver the food, fuel and all the things RUS direct loan or grant is about $900 to fund projects using other media,

JANUARY/FEBRUARY 2021 | www.broadbandcommunities.com | BROADBAND COMMUNITIES | 35 CONFERENCE COVERAGE including wireless broadband. “We “Electric cooperatives can take a RDOF for last-mile connectivity. take a technology-neutral position lead role in rural broadband buildouts RUS approved loans for 22,711 miles just from the sheer fact that we know with the FCC’s RDOF program,” Rupe worth of smart-grid fiber investments. rural providers can’t build out fiber said. “Electric cooperatives can not “This is something that can give everywhere,” Rupe said. “But where only provide a smart-grid technology a leg up as electric cooperatives seek we can and it makes sense, fiber is a solution to achieve energy efficiency broadband funding,” Rupe said. “We wonderful solution.” for their members but also close the can give them the cost of capital for middle-mile gap.” construction that they need.” BRIDGING ELECTRIC CO-OPS’ An electric cooperative can get a This funding applies to electric MIDDLE MILE loan with a fixed rate from the Federal cooperatives building their own Having been in the electric industry Financing Bank. According to RUS, fiber networks through provider for a century in some cases, electric the interest rates include the Treasury partnerships. For example, Utilities cooperatives are pursuing broadband Department rate plus one-eighth District of Western Indiana recently businesses either on their own or percent and vary depending on call broke ground on a joint fiber project in through provider partnerships. The options and the interim maturity rate partnership with Smithville. RUS electric program includes more selected at each advance, which may be “Even if they don’t want to provide than 600 electric cooperative members. as short as 90 days, with auto-rollover. service themselves, they can partner In September, RUS implemented a Co-ops can use these loans to build out with a telecom provider, get that new rule that allows up to 10 percent of fiber past the electric substation all the last mile and lease out excess dark a loan or grant to be used for last-mile way through the electric distribution fiber capacity to get service to their and middle-mile connectivity. system and use the reimbursement from members,” Rupe said of co-ops.

Tennessee Utilities Fiber Boosts Business Growth, Electric Reliability As traditional providers fall short completed the 24,000 customers. The presence of fiber on delivering high-speed broadband study again, and made it a new spot in smaller towns, several Tennessee this time the to host gaming electric utilities are entering the realized value conferences. “We broadband game. brought almost have seen a $66 EPB, Bristol Tennessee Essential $2.7 billion million return Services and CDE Lightband found worth of value to on our fiber their fiber networks are helping drive Chattanooga.” investment,” said business growth and improve electric Bristol David Wade President and COO, Brian Taylor, reliability. Tennessee Brian Taylor EPB general manager of General Manager, When EPB devised its fiber plan, it Essential Services CDE Lightband. CDE Lightband considered three main points: take rate, and CDE Lightband see similar “We host an electric system impact and the impact benefits. Bristol currently serves 33,000 annual gaming conference called on the Chattanooga community. electric customers and 19,000 fiber F2Con, which we’re able to do because Since launching its fiber network in customers, surpassing its goal to sign of our high-speed internet service.” 2009, EPB surpassed its initial 30,000 7,000 fiber customers. customer mark. It now serves more Mike Browder, ENHANCING ELECTRIC-GRID than 117,000 customers. CEO of Bristol RELIABILITY Before EPB launched the service, Tennessee Given that the utilities are in the it asked the chair of finance at the Essential Services, electricity business, the fact that fiber University of Tennessee at Chattanooga said the fiber networks improved electric-system to build an economic model of how network is reliability was an obvious benefit. fiber would affect the community. A attracting and Fiber allows a utility to get new study by the university revealed retaining residents. information at any point along the that Chattanooga gained a $2.69 “We had other Mike Browder, CEO, electric cable. The technology can Bristol Tennessee billion community benefit during the things in our Essential Services improve the monitoring of components first 10 years. community that of a substation or other high-powered “The university projected EPB people like and want, but we needed infrastructure and provide immediate would see a $605 million return something to keep our young people information on the health of a over the 10 years,” said David Wade, here,” Browder said. smart grid. executive vice president and chief Meanwhile, CDE Lightband posted In addition to improving its operating officer of EPB. “We just a 32 percent take rate with more than broadband take rates, EPB has

36 | BROADBAND COMMUNITIES | www.broadbandcommunities.com | JANUARY/FEBRUARY 2021 exceeded its electric-grid efficiencies. fingers and told him, ‘You had four, but Likewise, Bristol Tennessee Essential “We have seen a more than 50 percent the longest one was 36 seconds.’” Services attracted Agero, which offers improvement since we built our smart roadside assistance and dispatch services grid,” Wade said. ATTRACTING BUSINESSES to automakers, insurance companies and Similarly, CDE Lightband has Building out a fiber network enables tow-truck providers. Initially, Agero did seen annual operational savings. “The a city to attract new businesses not want to locate a facility in Bristol, broadband division is paying the and employees. For instance, the but it liked a particular building. electric division $8 million per year in Clarksville, Tennessee, industrial “Agero came back and looked at rental of the fiber and shared costs,” development board touts fiber-based the building and saw that our fiber Taylor said. broadband as a core amenity. Large was connected to some sandwich Browder said the fiber network industry titans, including Google, have machines,” Browder said. Bristol enables it to be proactive, which is come into the broader county, and Tennessee Essential Services was able to key for business customers who rely fiber is attracting residents who work at connect the building with fiber in one on power to keep running. “The fiber those companies. day, which enabled Agero to improve network helps us provide on-time “While the large, industrial load internet-based phone calls. electric service,” he said. “Being able to has been out in the county we don’t “Agero’s president told us we’re read meters, report outages, automate serve, much of the residential load and the only ones that enable them to switching and relocate a load without their small partners are on our system,” do internet phone calls without anybody having to touch anything has Taylor said. background noise,” Browder said. been huge.” But Taylor added that fiber is not Similarly, EPB attracted In one case, the network prevented only about attracting large businesses. International Maritime Security an outage from impacting The Pinnacle “We have a church that does virtual Associates, which creates a location- shopping center in Bristol, Tennessee. sessions that asked to be annexed into specific set of information to send to “The person who built The Pinnacle told the city so it would have fiber-based ships at sea. “They said a big reason to me it had not had any outages since it internet,” he said. “Fiber has been a locate in Chattanooga was EPB’s fiber opened,” Browder said. “I held up four strong economic development tool.” service,” Wade said.

Costs, Permitting, Procurement Pose Challenges A fiber provider may offer high speeds equipment. “Every piece of equipment percent underground, but you may find and economic development benefits, but that you get, there’s going to be out there is a lot more underground.” permitting, regulations, procurement software attached to it and licensing He added that new providers should and overbuilding competitors mean new attached to it,” Calhoun said. “You “do a thorough pre-engineering plan entrants must be prepared to deal with have to account for them in your before deployment.” unforeseen issues. business plan.” Chris Calhoun, But software is only one cost element PERMITTING, FACILITY BLIND vice president that can come back to bite a provider. SPOTS of operations For BrightRidge, an electric utility Service providers building out fiber must and technology company in Johnson City that’s building navigate a complex web of permitting at Newport a hybrid wireless and fiber network, and facility ownership rules. Ryan Utilities, said a utility pole overhead and aerial and Smith, engineering manager for the City well-thought- underground costs were an issue. of Loveland, said permits can become out business “What we more painful if not managed correctly. plan can prevent Chris Calhoun saw early on by “One of the big unknowns with the Vice President headaches. “Some of Operations working with ditch companies is that their pricing of the things and Technology, consultants was can be all over the board – meaning we missed are Newport Utilities that there was some are cheap and some are expensive,” cost-associated,” a big miss in he said. “Railroads often name their he said. “You can’t forget all of the assumptions for own price, but you have no choice if different costs it’s going to take, overhead and you need to go under a railroad. Those which are yearly costs, because that aerial fees,” said Stacy Evans little unknowns can add up quickly to a Chief Broadband determines your rates.” Stacy Evans, Officer, BrightRidge substantial amount of money.” One unwelcome surprise for chief broadband But another, more perplexing Newport Utilities was annual software officer at BrightRidge. “There was an issue for fiber builders is homeowners license fees for its optical and video assumption that systemwide, it was 20 association (HOA) irrigation systems.

JANUARY/FEBRUARY 2021 | www.broadbandcommunities.com | BROADBAND COMMUNITIES | 37 CONFERENCE COVERAGE

Because HOAs often do not mark these penny after the DoT redesigned the construction company, it had to get a systems, contractors digging ditches to intersection, but we negotiated with performance bond for each one. install fiber often cut into them. [the agency],” Calhoun said. “It can “It took us four months after “We’re hitting their lines because no cost you a lot of money, so do your due we selected a vendor to get it to do one knew they were there,” Smith said. diligence beforehand.” work,” Evans said. “Put as much of “When you hit them, it affects your the contract in the RFP as possible, so OVERCOMING PROCUREMENT reputation because the HOA can raise a you’re not negotiating after the fact.” ISSUES stink to the other nearby HOAs.” Delays with contractors are not After putting together a business Smith said Loveland’s marketing unusual. The City of Loveland’s fiber department is doing PR outreach “to plan and securing permits, service network build plan was delayed when make sure we’re doing what’s right for providers must take into consideration its legal team could not agree on the city and the general public.” procurement timelines. Procurement contract terms for the construction it After securing rights of way and for products, such as fiber and trucks to other permits, Newport Utilities ran string wires on poles, has been delayed assigned for its project. into trouble with the Department of by the pandemic. “COVID-19 has made “We had a nice design, but then we Transportation’s intersection redesign procurement a challenge with supply had a huge delay between the design plans. The DoT was going to move chains,” said BrightRidge’s Evans. “Even and putting boring cable into the everything at its cost, but when it found before the pandemic, getting bucket ground,” said Ryan Smith, the city’s out there was not a permit, it said it trucks could take a year.” engineering manager. “We went through would not touch the company’s fiber. Evans added that after BrightRidge months and months of legal issues and “It was going to cost us a pretty went through the RFP process for a procurement processing.”

Google Fiber’s ‘Un-Cable Provider’ Approach Focuses on Customer Experience With a focus on being what it calls when they notice us through marketing joining Nashville and Huntsville. the “un-cable provider,” Google Fiber and through our onboarding “We want to show that we’re ‘un- wants to win customers and manage experience,” she said. “Engagement is cable’ in that we have not raised our the experience during the entire an important word for me because it internet prices in more than 10 years,” relationship life cycle. shows the commitment we’re making Griffith said. “We don’t charge an Today, Google Fiber is in 11 to our customers.” install fee or an activation fee.” markets with plans to enter more this AN ESSENTIAL SERVICE FOCUS ON EXPERIENCE year and next. Being an internet-based company, Google Fiber’s “Refreshing Internet” Melani Griffith, vice president Google Fiber delivers what has become campaign touts that its service does of customer an essential service. As students and not include data caps, annual contracts engagement for businesses were forced to learn and or hidden fees – issues that have long Google Fiber, said work from home at the onset of the aroused the ire of internet users. everything “begins pandemic, symmetrical broadband It also focuses on how its human customer service team is available and ends with the became just as important as heat anytime to help customers – by phone, customer.” and electricity. text, email, chat or direct message. Griffith says “What we’re bringing to our that Google Fiber “People don’t know the difference Melani Griffith, Vice customers is something that used to be views customer between broadband and Wi-Fi,” Griffith President of Customer in some people’s mind a luxury, like said. “If you say, how is your network, relationships as Engagement, entertainment,” Griffith said. “Now, ongoing rather Google Fiber people often use the word Wi-Fi, so in the last year, it has proved to be an we want to make sure that the whole than one-time essential service for people.” internet experience is phenomenal.” transactions. They begin when Knowing how fundamental the Download speeds are important potential customers look at Google internet is, Google Fiber touts simple to watch Netflix or stream the latest Fiber offerings online, sign up, and pricing and personal customer support. Foo Fighters single on Spotify, but become paying customers. Google Fiber still charges $70 for a 1 consumers notice speed lags when they “We want to make sure we reflected Gbps service and now $100 for its new conduct two-way Zoom meetings. engagement in our name, which is 2 Gbps product. Google Fiber’s 2 Gbps Griffith said COVID-19 has enabled how we bring this product to customers service is available in Utah (in Provo Google Fiber to highlight the every day and interact with them and Salt Lake City) and in Atlanta, importance of symmetrical speeds.

38 | BROADBAND COMMUNITIES | www.broadbandcommunities.com | JANUARY/FEBRUARY 2021 “COVID-19 helped tell the symmetrical story for us,” she said. EXPERT PERSPECTIVES “Nothing is worse than when you’re “The pandemic isn’t making broadband essential; it is exposing that it on a video call and jitter interrupts a always was.” person working from home, so we’re making sure you know how fiber does a – Dr. Bento Lobo, First Tennessee Bank Distinguished Professor of Finance, better job for this pain point.” College of Business at the University of Tennessee, Chattanooga Before a customer signs up for “The predominant technology used by providers that apply for funding is service, Google Fiber makes the fiber to the home, which I feel is the best technology to deliver services in onboarding experience easy, with rural areas.” simplified setup and appointment – Shawn Arner, deputy assistant administrator, USDA/RUS times for customers who need on-site assistance. It sends a self-install kit with “There’s not a one-size-fits-all approach to funding broadband.” setup instructions. For example, the – Crystal Ivey, broadband director of federal and state funding programs, instructions tell customers where fiber Tennessee Department of Economic and Community Development jacks are in their apartments. “Any step that causes a customer a “We think 25 Gbps PON is the sweet spot to be able to get a big bang for challenge, we try to anticipate it and your buck right now.” plan ahead for them,” Griffith said.v – Doug Blue, residential broadband business development leader, Nokia

“The biggest thing we learned is that if you create advocates for your Sean Buckley is the executive editor of service, they become another level of your marketing arm.” Broadband Communities. He can be – Teles Fremin, chief communications engineer, LUS Fiber reached at [email protected].

JANUARY/FEBRUARY 2021 | www.broadbandcommunities.com | BROADBAND COMMUNITIES | 39 BROADBAND POLICY

A Broadband Policy Agenda for the New Administration

The digital divide has held back the United States for too long. Now is the time to end it.

By Masha Zager / Broadband Communities

he Biden Administration’s efforts to broadband of higher quality, and at lower prices, tackle the multiple crises besetting than they otherwise might have. Yet the digital Tthe United States present a historic divide remains as stubborn as ever – a fact that opportunity to end the digital divide for a became painfully apparent once COVID-19 generation or more. As former FCC chairman transformed social and economic life. Millions Tom Wheeler points out, universally available of people have no access to adequate broadband; and affordable broadband is a prerequisite for millions more cannot afford adequate addressing many of today’s urgent issues, among broadband. A Microsoft study, measuring actual them the coronavirus pandemic, the economic U.S. usage patterns in September 2018, found collapse, climate change and social inequities. that 163 million people did not use the internet Broadband probably offers more bang at download speeds of 25 Mbps. for the buck than any other lever available As a result, in the last year, schoolchildren to policymakers. But offering isn’t the same fell behind in their studies, businesses closed, as achieving. For two decades, the federal and people exposed themselves to illness when government has poured billions of dollars they had to conduct tasks in person that others into support for broadband deployment and accomplished online. operation. The FCC increased Universal Service What went wrong? Why didn’t the billions Fund (USF) high-cost support and redirected invested in broadband succeed in solving it from telephone to broadband. The the problem? More important, what should Department of Agriculture’s Rural Utilities the new administration and Congress do Service (RUS) handed out loans and to ensure that all American households, grants to small providers. The National businesses and institutions are adequately Telecommunications and Information served with broadband? Administration oversaw massive grants for middle-mile networks. Smaller programs have IS MORE DEPLOYMENT FUNDING addressed broadband specifically for health care, NEEDED? education, economic development, low-income Let’s consider household access first, consumers, students at HBCUs and tribal areas. independent of affordability. Following are some Mapping, digital literacy, broadband adoption back-of-the-napkin calculations to estimate the and regulatory streamlining also have been magnitude of the deployment challenge. targets of federal efforts. The FCC reports that, as of 2019, 87.2 Some of this money has been well spent. percent of the U.S. population had access to Many people, businesses, schools and hospitals fixed, terrestrial broadband service of at least throughout the United States have access to 250 Mbps/25 Mbps. The FCC’s broadband

40 | BROADBAND COMMUNITIES | www.broadbandcommunities.com | JANUARY/FEBRUARY 2021 availability data has been widely and justifiably criticized (more on this later), and the 87.2 percent is almost certainly an overestimate. However, given that 86 percent of the U.S. population lives in metropolitan areas, it isn’t completely unreasonable, either. It’s probably fair to assume that • 250/25, even if it’s only an advertised speed, constitutes adequate service, at least for today. • Any network capable of 250/25 speeds is also capable of being economically upgraded to higher speeds in the future, because clear upgrade paths exist for both HFC and fiber to the home (FTTH). • Around 80 percent of the population has access to 250/25 service. • A small percentage of U.S. households – let’s say 3 percent – is too remote and off-grid for assumes that all 22 million households point, is not primarily attributable to terrestrial broadband to be a would require subsidies, which almost a lack of public subsidies. Rather, it is realistic option. certainly is not the case. (Some FTTH attributable to the way subsidies are deployers, including the consulting firm allocated and spent and to rules that That leaves about 17 percent of the advising RECC, have built networks in limit competition. population in areas that are possible extremely rural areas without subsidies, è Current levels of broadband targets for subsidized broadband and argue that subsidies are rarely deployment. deployment subsidies should required. In addition, not all 22 million be maintained or increased In the Rural Digital Opportunity households are in rural areas.) over the next five years, but Fund (RDOF) auction held in fall The USF high-cost program has an policymakers will need to 2020, the Rural Electric Cooperative annual budget of about $5 billion, and change the way these subsidies Consortium (RECC) won $1.1 the RUS spends something less than are distributed. billion to serve 618,000 locations $1 billion a year in broadband grants. with fiber broadband – a subsidy (Another $1.3 billion in broadband A problem with current funding averaging about $1,800 per premises. grants, $1 billion of it designated for mechanisms is that the major source – RECC participants are advised by tribal lands, just became available in the USF – was established to support a consulting firm with successful the December 2020 COVID-19 relief telephone service, and its fees are experience building fiber to the home bill, but this is a one-time allocation.) assessed as a percentage of voice service in unserved and underserved areas, The RUS also makes subsidized loans. revenues, a rapidly declining base. The so the amount awarded to RECC is At about $6 billion per year, base for USF must be broadened, and likely a reliable estimate of the subsidy therefore, the entire United States, now that disbursal of the funds is used actually required. Because electric except for the most-remote 3 percent, primarily for broadband deployment, it cooperatives cover about 75 percent of could have access to adequate might make sense to add internet service the U.S. geography, and have similar broadband in seven years or less. revenues to the base. Several other advantages in terms of being able to In fact, $20 million of the required approaches have also been suggested. build broadband efficiently, this subsidy $40 million is already designated for è The base for the USF needs is likely applicable to many other broadband deployment in the RDOF. to be broadened and made underserved areas. More money would get the job sustainable. At $1,800 per premises, building done sooner. In his campaign for office, fiber to the home to 22 million President Biden pledged to invest RURAL DEPLOYMENT households – 17 percent of the nation’s an additional $20 billion in rural Most of the broadband deployment 130 million total – would require broadband, and this could speed up shortfall in the United States is outside subsidies of roughly $40 billion. This the timetable. But these calculations metropolitan areas. Small towns and is probably an overestimate, because it suggest that the digital divide, at this unincorporated areas are far more likely

JANUARY/FEBRUARY 2021 | www.broadbandcommunities.com | BROADBAND COMMUNITIES | 41 BROADBAND POLICY than metropolitan communities to have publicly subsidized broadband problem. Pre-pandemic, this was called inadequate broadband or none at all. networks should be set at 1 the “homework gap.” During the last Even outside metropolitan areas, Gbps symmetrical or higher to year, there has been a complete learning the shortfall is predominantly in the ensure that public investments gap for many children who cannot traditional service areas of the price- will be usable for a generation access the internet from home. School cap (large) carriers. Many small, or longer. Requirements for districts have responded by lending independent telcos used USF high-cost latency and reliability should Wi-Fi hot spots to children, sending support and RUS-subsidized loans also be set at a high level. Wi-Fi-equipped school buses into to build out fiber to the home, or at Second, the FCC has not enforced unserved neighborhoods, and engaging least to the neighborhood, long before the requirements it imposed. Large in similar heroic measures. But these the FCC began trying to encourage carriers have accepted high-cost measures are only Band-Aids, as they broadband deployment. Price-cap funding that entailed broadband rely on cellular data networks that carriers did not generally build fiber to buildout requirements (sometimes aren’t designed for this type of use. the home in nonmetropolitan areas. at only 10 Mbps/1 Mbps) and then Children should have better options. Failing to build fiber did not help failed to meet those requirements. In An obvious solution is to expand the price-cap carriers any more than addition, the preliminary results of E-Rate, a component of the USF that it helped their customers. Frontier the first RDOF auction, in fall 2020, subsidizes the connection of schools Communications, a large rural have engendered skepticism about how and libraries, to cover connectivity provider, admitted when it was forced some of the recipients can meet the for students. Until recently, the FCC into bankruptcy nearly a year ago performance goals they set. (See “FCC’s argued it had no authority to use E-Rate that “significant underinvestment RDOF Auction Dissected” on p. 8.) funds for this purpose, but Acting in fiber deployment and limited è The FCC must vet high-cost Chairwoman Jessica Rosenworcel has enterprise product offerings have program recipients to ensure now requested comments in response created headwinds that the company is their plans for achieving to three petitions for emergency relief repositioning itself to reverse.” broadband standards are from this prohibition. A bill to increase The FCC has gradually shifted its realistic. It should hold them E-Rate funding and authorize its use approach to the administration of its to account for meeting their for this purpose has been introduced to high-cost program. First, it tied high- obligations, and claw back and the Senate. cost subsidies to broadband deployment. discontinue funding for those è Congress should pass legislation Next, it allowed non-incumbents to that fail to do so. Other grantors explicitly authorizing the use bid for support in areas where price- should follow similar policies. of E-Rate funding to connect cap carriers had turned down offers of households with schoolchildren support. Finally, it transitioned nearly One obstacle competitive providers to the internet. the entire program to an auction system. have faced in building out rural It also raised the broadband standard to broadband is the difficulty of sourcing MAKING BROADBAND 25 Mbps/3 Mbps – a standard the RUS backhaul to the internet. In some AFFORDABLE cases, the only backhaul fiber they can has also followed. There’s a huge gap between Microsoft’s lease is owned by the carriers they are These were all positive steps. 2018 count of U.S. residents who trying to compete with. The BTOP However, they didn’t go far enough. didn’t use the internet at 25 Mbps program in the 2009 stimulus package First, the 25/3 standard was download speed (163 million) and the financed $4 billion in middle-mile designed to allow telcos to avoid FCC’s contemporaneous estimate of fiber, which went a long way toward modernizing their networks. Families residents who had no internet access alleviating this problem. Since that trying to work and study from home at this speed (18 million). Yes, the time, private companies have built even have found 25/3 service inadequate for FCC’s maps are terrible (more on this today’s world. When the standard is more middle-mile fiber, and backhaul prices have fallen substantially. There is later!). Certainly, many more than raised, as it inevitably will have to be, 18 million people lacked access to 25 areas that received high-cost support to no longer a need for a massive program like BTOP, but targeted middle-mile Mbps broadband. Others (judging bring their networks to 25/3 will have from my own experience) probably to be subsidized once again to bring projects may be needed to make some projects feasible. get 25 Mbps speeds at some times and them up to par. Setting a symmetrical not others. And perhaps some people gigabit standard will require deployers, è Public subsidies for broadband still don’t need or want high-speed in most cases, to build fiber networks, should finance fiber backhaul internet access. But it’s likely that the which can easily be upgraded to even to the internet where bulk of the 163 million wanted 25 necessary. higher performance levels. Mbps broadband (or better) but simply è Except in the most remote Finally, connectivity for couldn’t afford it – so they didn’t areas, the standard for schoolchildren remains a severe subscribe to broadband at all, or they

42 | BROADBAND COMMUNITIES | www.broadbandcommunities.com | JANUARY/FEBRUARY 2021 subscribed to a “budget” service tier, or The COVID-19 relief bill includes $3.2 billion they subscribed to DSL or fixed wireless when they would have preferred cable in emergency broadband benefits, which will or FTTH, or they relied on a cellular Wi-Fi hot spot. reimburse providers for extending discounts of Broadband may be unaffordable up to $50 to low-income households. for two reasons. First, people are living in or near poverty and can’t afford broadband at any price that would cover its costs. This is not specifically a broadband issue, but threat of competition is enough to push network. However, government policies it must be addressed if people are to broadband prices down. have made competition even more have opportunities to learn, work and Like other utilities, communications difficult than it needs to be, and these participate in society. service was once considered a “natural policies can be reversed. The Lifeline program, part of the monopoly.” As a result, state and federal The anticompetitive provisions that USF, was designed to help people governments regulated telcos’ fees and have received the most attention are afford basic voice service and has terms. Since the 1996 Telecom Act, state laws prohibiting or restricting been extended from landlines to which aimed to promote competition, public entities and electric cooperatives smartphones. All aside from the fact these regulations have been gradually from building and operating broadband that the previous administration was relaxed – for example, in some states, networks. States have lifted most of hostile to the program and made it incumbent telcos are no longer the restrictions on electric co-ops in more difficult to access, Lifeline is obliged to act as carriers of last resort. the last few years, but restrictions on inadequate in scale and design to help Broadband service has been exempted municipalities remain. poor people afford good broadband. from regulation as an “information There is no justifiable reason for The December 2020 COVID-19 service”; even when the FCC briefly these restrictions. True, some public relief bill includes $3.2 billion in recategorized it as a communications networks have failed – but so have emergency broadband benefits, which service, it forbore from regulating prices. some private networks. On the whole, will reimburse providers for extending In effect, residential broadband municipal broadband networks have discounts of up to $50 per month to providers in many parts of the United been successful and popular, and they low-income households. This approach States enjoy the benefits of monopoly have prodded incumbent operators to is more helpful, but it has limitations: without the drawbacks of regulation. improve quality and reduce prices. It will last for only six months past the Except in large and affluent markets, Some municipal networks have end of the current health emergency, households usually have access to, carried competition even further by and providers’ participation is at most, a DSL provider in the low opening their infrastructure to multiple voluntary. Whether all providers will end (often not meeting even the 25/3 service providers. As more providers join participate remains to be seen. standard) and a franchised cable a network, they push prices down to the è Congress should enact a provider in the high end. In recent marginal cost of providing service, and permanent broadband benefit years, alternative providers – including monopoly profits disappear. paid directly to eligible wireless ISPs – have succeeded in è Congress should clarify households and used by them offering more competition, but most of and safeguard the right of to pay any broadband provider. this competition is in the low- to mid- municipalities and municipal It can be administered similarly range of the residential market. There is utilities to finance, build and not a lot of competition for truly good to benefit programs designated operate broadband networks. for food, heating or education. broadband. The lack of competition The amount of the benefit is responsible for high advertised Another restriction on competition should be sufficient to pay for prices and for extra charges above the involves federal funders’ reluctance to adequate (not “budget-tier”) advertised price, such as those resulting “overbuild.” A potential deployer may broadband. from bandwidth caps. Increased be prohibited from receiving subsidies competition would lower prices and to build in an area already served by COMPETITION also reduce the need for the broadband broadband, especially if the previous The second, and more important, reason benefits described above. deployer received federal subsidies or broadband is unaffordable is the lack of Competition is a tough nut to crack loans. (Lenders, such as the RUS, competition in most areas of the United precisely because, in smaller and poorer don’t want to jeopardize their States. Broadband prices are lower in markets, communications networks are outstanding loans by funding countries that have more competition still close to being natural monopolies – competitors to their borrowers.) and in parts of the United States that that is, there may be no way to recoup Funders justify these restrictions by have more competition. Often, even the the costs of building out a competitive saying they need to address unserved

JANUARY/FEBRUARY 2021 | www.broadbandcommunities.com | BROADBAND COMMUNITIES | 43 BROADBAND POLICY areas first. However, the restrictions Of course, the quality and price operate its proposed network sometimes result in denying funding of any existing broadband should be eligible to apply for for unserved areas. Unserved areas are service in the area should be broadband grants, loans and often isolated pockets surrounding considered in evaluating the other subsidies. a served town, and no deployer can proposer’s business plan. MAPPING economically serve the unserved Finally, rules about which types of pockets without also serving the town. No discussion of broadband policy entities are eligible for federal subsidies would be complete without considering These prohibitions are unnecessary. can limit the potential for competition. A well-served area does not invite the national broadband maps. The Until recently, almost all subsidies went existing maps have several serious additional competition, even if subsidies to incumbent telcos. The FCC and RUS problems: First, broadband coverage is are available. Competitors will invest have liberalized these rules in recent reported by the providers, which have in building a new broadband network years, opening up broadband subsidies an incentive to overstate their coverage only if residents are dissatisfied with to municipalities, electric co-ops, and service quality. Second, the maps the quality and/or price of the existing WISPs, cable companies and others. report advertised speeds, which have broadband offerings. In addition, Even though FCC support is required only a notional relationship to actual protecting subsidized areas from further to go to eligible telecommunications speeds. Third, the maps are not granular competition incentivizes providers to bid carriers, the agency has simplified the enough; partially covered census blocks for subsidies in order to “squat” on those process of becoming certified as an are reported as fully covered. Finally, the areas and fail to serve them. ETC. The agencies should continue maps do not report important aspects of in the direction of liberalizing access è Federal broadband subsidies service, such as latency or reliability. to subsidies. should not be made contingent In the current policy environment, on proposed service areas è Any entity that can the maps are worse than useless: Their being unserved or having demonstrate technical and inaccuracies have prevented broadband previously received subsidies. financial capacity to build and buildouts from occurring in places where they are needed. If the above policy recommendations were implemented, the maps’ deficiencies would cause less harm. Without prohibitions against overbuilding, for example, the maps would not stand in the way of valid projects being funded. However, accurate maps are still needed for practical and policy reasons. They would guide potential broadband deployers in determining where to invest their funds, and they would provide reliable estimates of the nation’s progress toward full broadband deployment. Congress has issued directives for fixing the maps, and in the December 2020 COVID-19 relief bill, it provided enough funding to fulfill the directive. è The FCC must develop and maintain a granular, accurate, up-to-date broadband map that is correctable through crowdsourcing, and Congress must actively oversee the progress of the mapping effort.v

Masha Zager is the editor of Broadband Communities. Contact her at masha@ bbcmag.com.

44 | BROADBAND COMMUNITIES | www.broadbandcommunities.com | JANUARY/FEBRUARY 2021

TECHNOLOGY

25G PON: The Future of Broadband

As the broadband industry looks to transform fiber to the home to fiber to everything, the advent of 25G has the potential to play a key role in connecting consumers, enterprises and cities and accelerating 5G.

By Ana Pesovic / Nokia

okia’s recent announcement of long-haul and metro optical technologies. As the commercial availability of the those technologies have matured, the costs have Nindustry’s first 25G PON solution was come down, and have reached a point that make met with a very favorable reaction. But a regular the technologies viable for the mass broadband question we’re getting is about the need for 25G market. This trickle-down effect has been PON, given that many broadband operators have successful but it needs time to really take hold. yet to implement 10G next-generation PON However, 25G PON has come about technologies. The evolution of PON is not just relatively quickly by instead leveraging 100G about faster speeds – it’s about new opportunities Ethernet technology (with 25 Gbps channels) and how fiber can be used in different ways to used for intra-data center connectivity. The capitalize on these opportunities. demand for data center capacity is booming. Until now, PON has been used mainly to It has driven volumes and reduced prices on deliver residential services, and, to some extent, 25G components to the point where the mature services to businesses and mobile macro cells. ecosystem already enables a cost-effective 25G The ambition is to transform fiber to the home PON solution. (FTTH) to fiber to everything (FTE). In fact, There is strong cross-industry support for 25G fiber access has the potential to play a key role PON, as evidenced by the creation of the 25GS- in connecting consumers, enterprises and cities PON MSA Group, communications industry and accelerating 5G. It is a single infrastructure operators, system vendors and component that will underpin the entire telecoms industry. vendors that have come together to define and To deliver on that promise, fiber networks develop 25G PON technology. The members’ must become faster, smarter and more cost- view is that there are extremely compelling near- efficient. This is a top priority for any successful term use cases that require enhanced broadband access technology, and 25G PON is the capacity, and their goal is to create an ecosystem technology that fulfils all these requirements. and a standard that will ensure common functionality and interoperability. HITTING THE RIGHT SPOT 25G PON is the next best step because it DEPLOYMENT SCENARIOS delivers the right capacity at the right cost. The first urgent use case for 25G PON is Until now, generations of PON technologies enterprise services. The gold standard for have been dependent on the preexistence of businesses is now 10 Gbps, which is currently

46 | BROADBAND COMMUNITIES | www.broadbandcommunities.com | JANUARY/FEBRUARY 2021 delivered by costly, dedicated point- an existing FTTH network for mobile to-point (P2P) fiber. Even XGS-PON transport means mobile operators can cannot deliver a full 10G because connect 5G small cell locations more of various overheads restricting the quickly, eliminating the need for a available bandwidth to 8–9 Gbps. 25G dedicated transport network and cutting PON can deliver data transfer rates the total cost of ownership in half. of 20 Gbps. This means it can deliver The last compelling use case a premium business service, with no is a combination of all the above: compromise on 10 Gbps peak rates, and convergence. The 25G PON still have plenty of capacity to spare. specification developed by the 25GS- Deploying 25G in overlay of the PON MSA Group ensures that it can existing PON with an additional coexist with both GPON and XGS- wavelength means that bandwidth PON and can be implemented in demands of enterprise customers an existing FTTH network without can be met on a network originally disrupting services. The capacity of built for residential services. A single 25G PON makes it possible for an converged network is cheaper to operator to support premium business deploy, operate and maintain than two services, gigabit residential broadband, separate networks (for example, PON and 5G mobile transport – all on for residential and P2P for enterprise). the same fiber. Greater capacity also Separation of residential and enterprise creates new revenue opportunities service on a PON can still be done through network sharing. Using through dedicated wavelength or software-defined network slicing, a network slicing. 25G PON network owner can carve As with many things in telecom out virtual gigabit PON networks for these days, 5G is also a driving factor wholesaling, converging even more for 25G PON. Increasing the capacity revenue-generating services over the and coverage in 5G technology results same infrastructure and enhancing the in many more radio cells than with business case. 3G or 4G LTE, and these cells need LOOKING BEYOND 25G fiber connectivity to carry mobile traffic deeper in the network. The PON evolution never stops. The densification of 5G small cells will be industry is preparing for 25G PON, Optical Hub Cabinets (OHC) Flexible ber distribution for up to 864 drops particularly prominent in urban areas but the work on evolution beyond this started years ago. Nokia is one of the from a compact groundmount cabinet (various where demand will be greatest. sizes available) with front and rear doors Drawing a dedicated fiber link technology companies leading the way to every 5G small cell would be in the standardization of 50G PON, prohibitively expensive, and microwave but it is safe to say it is 8–10 years away from commercial deployment. backhaul difficult to achieve, in an 25G PON leverages existing urban environment with poor line of technologies and a mature ecosystem, sight. This isn’t the case with an FTTH but 50G PON is a quantum leap that network because of its shared medium requires a new generation of lasers, and because FTTH networks are optical amplifiers and processing already in place in dense, urban areas. CFBT Building Terminals power, all of which are in their infancy. NEMA 12 indoor ber aggregation or If the capacity is there, using FTTH for Waiting for 50G PON is not an demarcation enclosures for up to 96 SC ber mobile backhaul becomes a no-brainer. option because 10 years is a long time connectors or 432 ber splices; ideal for However, GPON is insufficient for scalable, cost-efficient MDU ber deployment in broadband. Just think back to the 5G, and even XGS-PON will struggle broadband service you had in 2010! where there is a high capacity and high Operators need to increase capacity way density of 5G small cells on a PON. before then. 25G PON provides the 25G PON excels in these situations, next step that operators need. v with not only the capacity to support 5G throughput but also the low latency An Amphenol Company required to use a PON for fronthaul and Ana Pesovic is portfolio marketing www.charlesindustries.com midhaul mobile transport as well. Using manager for Nokia Fixed Networks.

JANUARY/FEBRUARY 2021 | www.broadbandcommunities.com | BROADBAND COMMUNITIES | 47 TECHNOLOGY

The Year Ahead in Telecom

5G may continue to grab headlines in 2021, but the telecom industry will be dominated by the edge and by automation, enabling service provider networks to adapt to shifting traffic and usage patterns.

By Steve Alexander / Ciena

he year 2020 was like no other, bringing and smarter networks is to build out the edge, untold disruption to everyone’s way where up to five times more data centers are Tof life. The telecom industry held up needed than are available today. remarkably well to the unprecedented level There is already heavy investment in of strain on networks and consumer services building out edge data-center sites to bring as workers became remote, video content the cloud closer to users, and this investment consumption soared, and “Zoombombing” will continue at pace in 2021. Carriers know became a well-known word. they need to continue to focus on building out Behind the scenes, and despite the their edge infrastructure in these smaller data- sometimes-literal roadblocks COVID-19 threw center sites, leveraging edge cloud capabilities. in their paths, global service providers continued This will mean that services can be processed to roll out 5G, explore innovative automation closer to users, improving user experience and technologies, and push the boundaries of delivering on the bold promises of 5G. network performance. As dependence on networks shows no signs of slowing, what does MEETING NEW NETWORK the next year have in store for the industry? REQUIREMENTS WILL BECOME AUTOMATIC TAKING INVESTMENT TO THE Carriers know that the demands consumers EDGE IN 2021 place on networks show no signs of slowing 5G networks are primed to deliver faster web as lives become more digital and distributed. browsing and video streaming with reduced That means network rollout will continue at latency, both very appealing for consumers. pace, but networks must now be built to adapt But 5G can do so much more once networks on their own. Carriers have already taken steps have matured. Advanced 5G services such as to make this happen, but in 2021, there will rich augmented reality (AR) and virtual reality be even more use of software and analytics to (VR), cloud gaming, telemedicine and Industry improve the way optical networks function. 4.0 (the connected manufacturing revolution) Advanced software capabilities will redefine all require reliable networks that can deliver low how network providers engineer, operate and latency and high bandwidth – and also high monetize their optical networks. These software levels of intelligence. solutions were originally focused on extracting Networks must continue to get faster, closer more value from existing network assets. and smarter, utilizing automation intelligence In 2021, consumers will see these software and software to deliver on the hype of these solutions play a key role in new network builds, exciting services. A part of building faster, closer giving service providers the ability to fine-tune,

48 | BROADBAND COMMUNITIES | www.broadbandcommunities.com | JANUARY/FEBRUARY 2021 control and dynamically adjust optical Networks must continue to get faster, closer connectivity and capacity. Software will offer greater visibility and smarter, utilizing automation intelligence into the health of networks via real-time link performance metrics and increased, and software to deliver on the hype of exciting end-to-end photonic layer automation. services such as rich AR and VR, cloud gaming, By utilizing the latest advanced software solutions, providers can monitor and telemedicine and Industry 4.0. mine all available network assets to be able to instantly respond to new and unexpected bandwidth demands and allocate capacity across any path in real time – a function that will become about what the killer app for the new The suite of internet protocols allows increasingly important year on year. standard will be. This year might this complexity to be abstracted up to not be the year that question will be a set of globally uniform IP addresses, DIGITAL INCLUSION KEY answered definitively, but it will be the which has served people fantastically TO CONTINUED REMOTE year that enhanced reality (AR and well. At the same time, service provider WORKING VR) applications take a step forward. networks look largely opaque to the COVID-19 demonstrated how However, consumer-centric services cloud – consequently, it is hard to important connectivity is for people to may not light the path – enterprise use guarantee the cloud experience that stay in touch, shop and work remotely cases could lead the way. users desire. To deliver next-generation to keep the economy moving. It I think it’s safe to say that many service, more collaboration between also proved crucial to the continued people have grown weary of online team cloud and network is required. Making education of students. There is a growing meetings this year, and “Zoom fatigue” the network adaptive using intelligent desire to maintain this flexibility has become a very real thing. In 2021, software allows coordination between even once pandemic restrictions are I predict, we will see more instances of service provider networks and the cloud lifted, but this is possible only through AR and VR being used as collaboration and will enable a generation of AR- connectivity and capacity. tools, helping remote teams regain and VR-based immersive services and In 2021, rural connectivity and some of the “live” element of working applications. digital inclusion initiatives will move together. These services will initially Last year, the telecom industry higher up the political agenda, and need to run over combinations of home proved to be extremely resilient to levels solutions such as low-Earth-orbit broadband, in-building Wi-Fi and 4G of disruption few would have imagined satellite connectivity will come to and 5G networks. They ultimately will just 12 months earlier. But it also greater prominence. The solution that open the door to more commercial showed just how dependent people are maximizes ultimate capacity is still AR and VR services over 5G networks on connectivity and how much more scaling fiber-based broadband, but this and Wi-Fi 6 further down the road. needs to be done to ensure the benefits can be a challenge in rural areas and The quality of those networks will take of next-generation networks reach all will require a nudge from policymakers enhanced-reality applications beyond corners of society. to get things moving. fun, short-term gimmicks into being Fifth-generation networks may well Countries that want to stay at viable and valuable service offerings. continue to dominate headlines in the the forefront of the digital economy national press in 2021 as excitement IMPROVING THE CLOUD must break down the barriers to rural over what they can offer continues to EXPERIENCE connectivity and invest in fixing the simmer, but a peek behind the curtain One of the biggest trends of 2020 last-mile problem. They must also will reveal a year dominated by the edge was the partnerships forged between continue supporting digital inclusion and by automation. By building out telecom carriers and some hyperscalers. programs that grant students access the network edge and continuing to No doubt this will continue and grow to technology and tools. Government invest in intelligent software that enables well beyond 2021, but as networks incentives and initiatives and ongoing networks to adapt, we can continue to become increasingly more software- review to ensure that networks use the push the boundaries of networks, begin centric, there is an opportunity to most effective equipment suppliers are to unlock the potential of 5G and reap improve the delivery of new services certainly ways to help. the rewards of robust connectivity. v and applications to users. ENHANCED REALITY FIRST From the perspective of a webscale KILLER USE CASE FOR 5G operator, service provider networks Steve Alexander is the CTO of Ciena, Almost as soon as talk of 5G networks often appear to be a patchwork quilt a telecommunications networking first started, so too did questions of various vendors and technologies. equipment and software services supplier.

JANUARY/FEBRUARY 2021 | www.broadbandcommunities.com | BROADBAND COMMUNITIES | 49 TECHNOLOGY

A Service Provider’s Guide to the Three Changes in Wi-Fi

A group of new innovations – including Wi-Fi 6, 6 GHz spectrum and Wi-Fi 7 – will open new opportunities for delivering and supporting Wi-Fi services over the next three years.

By Charles Cheevers / CommScope

ervice providers will be able to take Wi-Fi 5 technology, the overall performance of advantage of three changes in Wi-Fi Wi-Fi in a home with numerous client devices Stechnology over the next three years. (Wi-Fi 4/5/6) increases in both throughput These important technology milestones in and range. Wi-Fi will be introduced in quick succession: This can be attributed to many factors, • The availability of Wi-Fi 6 access points including better Wi-Fi access-point designs, and clients improvements in front-end module power • The imminent availability of 6 GHz amplifiers and low-noise amplifiers (i.e., spectrum around the world and the better receiver sensitivity) and more efficient emerging Wi-Fi 6E devices supporting it use of a Wi-Fi physical layer in mixed Wi-Fi environments. This performance improvement • The finalization of Wi-Fi 7’s operating for mature applications, such as access points, features meshing solutions and clients – such as IP This is a lot for any service provider to set-tops using Wi-Fi 6 – make it the obvious absorb into its road map, particularly as many choice for service providers launching new providers have yet to deploy Wi-Fi 6 solutions. devices in 2021 to give consumers overall better An important step for providers is deciding how home connectivity. to reconcile access point and client availability in the context of new Wi-Fi technology WI-FI 6E applications over the next three years. There will Wi-Fi 6E is one of the most significant also be new dynamics at play – much as there improvements to Wi-Fi in years, with its were when 802.11n introduced new 5 GHz addition of 6 GHz spectrum. The big question spectrum support and the killer application is how to get it to consumers. Besides offering was supporting IP video streaming, which much needed breathing room for traffic on the still makes up more than 80 percent of all 2.4 GHz and 5 GHz bands, Wi-Fi 6E provides home traffic. better quality of service for users and supports new low-latency, high-speed and “bookended” WI-FI 6 services. In bookended services, the access Let’s start with what’s available today: Wi-Fi 6 point and the client can be deployed together gateways, access points and extenders. Wi-Fi 6 on 6 GHz channels to provide congestion-free has been in retail for more than a year. When 4K and 8K video over Wi-Fi 6 GHz – even in these access points replace previous generation congested 5 GHz environments. The magic of

50 | BROADBAND COMMUNITIES | www.broadbandcommunities.com | JANUARY/FEBRUARY 2021 Wi-Fi 6E and 6 GHz is that only Wi-Fi higher-capacity and lower-latency (SMD) solutions: Particularly 6E–capable devices can use this new Wi-Fi connection needs. in congested 5 GHz multiple- spectrum, so its use accelerates the dwelling-unit (MDU) deployments, adoption of the new Wi-Fi 6E efficiency Introduction of new service using new 6 GHz spectrum can features and provides an immediate provider–driven wireless home afford apartment residents their benefit to new high-speed, congestion- connectivity networks own Wi-Fi channels, offering affected and low-latency services. These will drive the onboarding of unparalleled performance for service But Wi-Fi 6E comes with a unique new Wi-Fi 6E–capable clients and provider–led SMD solutions. What set of hurdles: higher performance levels, extending OTT streaming service wouldn’t the access network into the home • Regulators in each country must want to run on a device with no through 6 GHz Wi-Fi and creating approve making either 1.2 GHz or congestion in its delivery? the determinism to the end client that First deterministic, low-latency, 500 MHz of spectrum available to • only scheduled OFDMA-based Wi-Fi no-jitter Wi-Fi services: unlicensed use for Wi-Fi. Wi-Fi 6E can deliver. In other words, 6 GHz • Regulators must decide on the 6E can deliver connection quality channels and Wi-Fi 6E allow the ability power levels for mobile, indoor and equivalent to an Ethernet cable. to schedule transmissions from 6 GHz– outdoor use of 6 GHz Wi-Fi. The 6 GHz spectrum offers a new capable clients so they don’t collide and • There is new complexity surrounding platform for low-latency, no-jitter can be received at a “deterministic” the introduction of tri-band 2.4 applications, such as gaming and agreed time value. Today’s Wi-Fi access GHz, 5 GHz and new 6 GHz radios. financial trading. In addition, point equipment has somewhat best high-capacity services such as Wi-Fi 6E is a service provider effort – versus guaranteed – bandwidth. virtual reality and augmented solution that will deploy in 2022 in The advent of 6 GHz and scheduled reality will need Wi-Fi 6E to create most countries. But even the countries Wi-Fi capabilities in Wi-Fi 6 can offer in-room, untethered, immersive that already have created the necessary a guarantee – or determinism – of experiences that can work only regulatory agreements for 6 GHz – packet delivery. This, for example, with determinism of rendering and such as the United States, South Korea, enables gamers to be offered guaranteed decode times. Chile, India and the United Kingdom – performance levels on a 6 GHz Wi-Fi Wi-Fi 6E–based service-provider will require some time to see service channel. It also enables more-effective offerings align more with new use providers deploy 6 GHz solutions. support for new latency-sensitive cases and new services, solving issues The primary considerations for service applications, such as cloud gaming such as MDU 5 GHz congestion. providers include over Wi-Fi. These deployments run concurrently • What is the consumer value in this Introduction of key service with Wi-Fi 6 gateway and access-point new Wi-Fi 6E solution? provider bookended device deployments for consumers not quite • How will this value manifest itself solutions: ready to take advantage of the new in a service offering? features aligned with Wi-Fi 6E. Wi-Fi 6E–based mesh solution • What services can be offered in • : We expect to see service providers advance of general consumer Use Wi-Fi 6E to guarantee drive 6E adoption faster than the electronic client churn to new backhaul capacity and maximize random addition of Wi-Fi 6E–capable 6E solutions? the potential of 5 GHz for LAN clients to the home and take advantage Whoever can first take advantage connect only. At the same time, use of extending their deterministic of the almost 66 Gbps capacity in the 6 GHz backhaul capacity to also DOCSIS 3.1 and XGS-PON access 1.2 GHz of spectrum with some directly attach to sparse 6E clients networks through the home to the end key use cases and features will be as they emerge gradually in the client applications. well positioned to win consumers. home. Though 6E clients will start In the case of the service provider, replacing Wi-Fi 6 rapidly, because WI-FI 7 the key elements will be formed from of the higher cost, there will be a There’s more … enter IEEE 802.11be the following: mix of three sets of Wi-Fi devices: or extremely high-throughput (EHT) low-cost Wi-Fi 5–only devices, Wi-Fi. Currently working through Introduction of additional tri-band dual-band Wi-Fi 6, and tri-band specification within IEEE and expected Wi-Fi 6E–capable devices (beyond 6E clients shipping together for to become the Wi-Fi 7 standard, it dual-band Wi-Fi 6 devices) the next three years. After this is a rapid evolution of Wi-Fi 6E and There will be overlap between the three-year period, Wi-Fi 7 comes naturally extends the work of new deployment of Wi-Fi 6 dual-band and into the mix. spectrum-aligned features. Wi-Fi 6 tri-band devices for several • Wi-Fi 6E–based set-top box To complete Wi-Fi’s journey to try years as consumers move steadily to (STB) and smart media device and match the capability of any wired

JANUARY/FEBRUARY 2021 | www.broadbandcommunities.com | BROADBAND COMMUNITIES | 51 TECHNOLOGY Wi-Fi 6 and tri-band Wi-Fi 6E and This creates a future wireless platform to grow services such as complete, untethered, low-latency immersive solutions on 7 will all have fundamental parts headsets or even on holographic monitors, such as those from Looking Glass Factory. With this wireless platform, it’s easy in creating the new platform of to imagine the applications that will build up in the home. reliable high-capacity, low-latency Multilink/Multiband Operation: With tri-band access wireless networks that new home points and clients becoming the norm from 2023 onward, the Wi-Fi specification introduces the ability for the access services, such as VR and AR, will point and client to send traffic on all three bands (2.4/5/6 Ghz) and for the Wi-Fi MAC itself to manage the decisions run on in the future. about how to send and receive these IP streams over the multiple bands. This will effectively replace the specific band steering seen today, coaxing clients to the right single band to get the best throughput. solution, Wi-Fi 7 adds several features, but two in particular So, although there will be potential to introduce Wi-Fi 7– define what it is and where it will be used. based solutions in 2023, it will be driven by a need to support high-capacity applications in particular. Because most people 320 MHz Channels: A significant upgrade from 160 MHz will not need this immediately, there will be plenty of room support in Wi-Fi 5/6, 320 MHz stretches modulations to 4K for Wi-Fi 6E and Wi-Fi 6 solutions to find adoption and QAM. Together with 6 GHz spectrum availability, this gives overlap with Wi-Fi 7 availability. However, Wi-Fi 7 also will Wi-Fi the potential to support 10–20 Gbps in the home, re-sync the changes in Wi-Fi 6 and 6E insofar as the shift to creating the potential for both 10 Gbps-plus backbones to tri-band access points and clients goes – creating compelling interconnect rooms and the ability to do in-room Wi-Fi from new Wi-Fi solutions for all deployments in the 2025 4.7 Gbps to 10 Gbps, depending on investment in radios. timeframe. In particular, home backbone and mesh solutions as well as VR/AR solutions will rapidly adopt Wi-Fi 7 as core technology. Also, new access technologies, such as DOCSIS 4.0, will naturally align with the availability of Wi-Fi 7 – pushing 10 Gbps low-latency delivery from the core network to client applications in homes. Private equity GrouP LookinG to SUMMARY –or– There is a simple path for service providers to take advantage invest of the three new changes in Wi-Fi technology over the coming three years. At its core is the key philosophy of Purchase investing in extending deterministic high-capacity and low- BroadBand infrastructure systems latency networks to client applications themselves, not just the and/or Provide exPansion caPitaL access network. All three Wi-Fi solutions – dual-band Wi-Fi 6 and tri-band Wi-Fi 6E and 7 – will have a fundamental part • CATV Systems • Wireless Systems in creating the new platform of reliable high-capacity, low- • Fiber Systems • Municipal Networks latency wireless networks that new home services, such as VR • Telcos • Data Centers and AR, will run on in the future. By investing in creating a deterministic wireless platform in homes, service providers will naturally attract all services to that platform, ensuring their relevance to consumers and potentially offering new commercial agreements with other OTT providers wanting to leverage low-latency, congestion- free wireless delivery for their services to use. It seems to be one of those times in which if the service provider builds it, they will come. And they will indeed come, as reliability, performance and latency required for the service become If you are interested in monetizing your investment fundamental in the increasingly digitized world. v or seek expansion capital, please contact: 512-266-1440 Or send a message to both emails: Charles Cheevers is the chief technology officer of home network [email protected] • [email protected] solutions at CommScope, a global leader in infrastructure solutions for communications networks.

52 | BROADBAND COMMUNITIES | www.broadbandcommunities.com | JANUARY/FEBRUARY 2021 CenturyLink Connected Communities Next-gen connectivity for residential properties

Custom tailored solutions are essential to meet future demand “We want to make sure residents always have access to the best possible internet service, regardless of the age or style of building.” Michael Janssen, Senior Sales Manager for Engineering at CenturyLink

Engage with us, and plan for your future. Visit centurylink.com/connectedcommunities

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Changes in the Geospatial Industry Will Transform Broadband

Augmented reality, reality capture, computer vision, and machine learning will automate data capture of physical broadband infrastructure for service providers.

By Peter Batty / IQGeo

he beginning of a new year is always a issues related to network reliability, customer good time to look ahead at what might service, time to market and safety. Tbe in the future. I have worked in the The only viable solution is crowdsourcing, geospatial industry for 34 years, and think more or what people sometimes call fieldsourcing: dramatic changes will occur in the next few having the people who make changes to years than have in the past 34. In particular, I networks record what they change when they do believe that a number of emerging technologies it. Existing mobile solutions can enable workers will transform the way people capture and in the field to capture data about network asset maintain data about the world, shifting from data updates. However, new technologies make manual processes to fully automated ones. These this data capture process much more automated, include augmented reality (AR), reality capture, simpler and faster, which leads to broader computer vision, and machine learning (ML). adoption in a wider range of situations. There is some overlap between these areas. These changes will lead to communications SELF-DRIVING CARS companies having hugely improved data William Gibson, the author of the science-fiction quality and currency in their network asset novel “Neuromancer,” in which he coined the records, which is critical for many aspects of the term “cyberspace,” once said, “The future is digital transformation initiatives happening in already here – it’s just not evenly distributed.” the industry. This applies very well to the technologies I mentioned. They are already being applied FIELDSOURCING TO SOLVE THE in a range of different industries but have not DATA MAINTENANCE PROBLEM yet made a significant impact on geospatial A longstanding challenge for communications applications for communications companies. companies has been how to keep geospatial One particular market really advancing network asset data up to date as networks are the state of the art in automatic recognition is extended and maintained. Currently, it can take self-driving cars. A video from Tesla (https:// weeks if not months for “as-built” changes to bit.ly/3sYjEPy) shows how a car recognizes, and make their way back into the enterprise system accurately locates, a wide range of features in of record, typically a geographic information the physical world. In the space of a fraction of system (GIS). There are many business reasons a second, it identifies street signs, traffic lights, inaccurate and out-of-date information on moving cars, people, curb lines, lane markings network infrastructure is unacceptable, including and more. This is almost all done using just

54 | BROADBAND COMMUNITIES | www.broadbandcommunities.com | JANUARY/FEBRUARY 2021 A video from Tesla shows how a car recognizes, and accurately locates, a wide range of features in the physical world. The same technology could be used in the broadband industry.

cameras. Clearly, these same principles situations, and now it applies ML by inexpensive and widely available. The could be applied to capture data about using that data to decide what a car latter is most relevant to the idea of infrastructure, such as poles, manholes, should do in any given situation. For fieldsourcing for data maintenance. cabinets and more. these complex problems, ML is rapidly Devices must be practical for all field In another Tesla video (https:// taking over from traditional software workers to carry with them (or must bit.ly/3a4O1eA), Andrej Karpathy development. be devices they already carry, such talks about the company’s “fleet of This has applicability to other as smartphones). Cameras alone can cars.” Unlike cars from most other various areas within broadband manufacturers, all Tesla cars are capture a lot of information, but an infrastructure, including data capture permanently online and communicate interesting development is that the and automated design. information back to Tesla. Karpathy newest high-end iPhones and iPads explains that Tesla has about 1 REALITY CAPTURE contain LiDAR scanners, which can help capture three-dimensional million cars on the road that play A general term for the idea of an integral role in the company’s automatically capturing data about models of the real world more quickly software development and testing the real world is reality capture. A and accurately. process by capturing data and testing wide range of devices can be used for new algorithms in the background as MACHINE LEARNING different types of reality capture: they drive around. This all happens An important technology related without any involvement from drivers. • Stationary LiDAR scanner to reality capture is ML, as I have Trucks and field workers could play ($15,000) already mentioned. This is applicable a similar role across the workforce in • Vehicle-mounted LiDARs and in multiple areas, but it is already quite infrastructure companies. 360-degree cameras mature and easily usable in image Another fascinating element of the • Any vehicle recognition applications. video is the extent to which Tesla uses • Drone (UAV) For example, Amazon’s Rekognition machine learning in its self-driving • Consumer 360-degree camera service can digitally identify detailed software. The initial focus for using • Action camera ML was recognizing the features in the characteristics of a photo, such as a • Smartphone environment around the cars, but Tesla person, a mountain bike, the presence • AR glasses/headsets also has massive amounts of recorded of rock and the outdoor surroundings data on how drivers interact with the Some are more specialized and to a high degree of accuracy (>80 pedals and steering wheel in different expensive; others are relatively percent). Microsoft, Google, Apple,

JANUARY/FEBRUARY 2021 | www.broadbandcommunities.com | BROADBAND COMMUNITIES | 55 TECHNOLOGY Technologies such as AR and ML will sensors, but this approach has intrinsic limitations in terms of accuracy. Using significantly improve data quality of broadband accurate point clouds to locate objects is a much more precise approach and infrastructure, including poles, manholes, a current area of major focus for many cabinets and more. large companies, including Google, Apple, Niantic and others. The idea of building an accurate point cloud of the whole world as a foundation for AR and other applications is generally known as IBM and many other companies offer how the addition of LiDAR scanners the AR cloud. similar services. These algorithms to high-end iPhones and iPads enables It will be a few years before this can be easily trained to recognize more advanced AR applications. Ikea vision is fully delivered, but when it is, it objects in a particular domain, such as and Shapr3D use AR for design (see will dramatically improve the accuracy poles, cabinets, manholes and more. https://bit.ly/39pm2HC), and both with which people can calculate Recognition of text, barcodes and QR have obvious parallels with design locations of items in the real world. codes is also now a commoditized creation for infrastructure companies. Elements of this concept are usable now, capability. All these technologies are Feature recognition is part of the such as measuring distances between very useful in automated data capture. process. nearby objects with greater accuracy Currently, AR works best indoors than is possible with GPS. AUGMENTED REALITY over relatively small spatial areas. Up Augmented reality capabilities continue to this point, outdoor AR applications IMPACT ON BROADBAND to advance. Another video (https://bit. over larger areas have mainly focused INFRASTRUCTURE ly/3cdm9rm) shows some examples of on using GPS together with orientation COMPANIES These technologies will dramatically change the nature of geospatial applications in infrastructure companies by significantly improving data quality regarding the physical infrastructure, keeping it up to date in near real time as changes are made in the field. Data capture will transition from a largely manual process to a fully automated one, using a variety of sensors. Both ML and AR will begin to play major roles in design. This, in turn, will mean that manual editing of GIS data will become largely obsolete. AR and virtual reality will be commonly used for the visualization of geospatial data. However, two-dimensional maps won’t become obsolete because they are still a useful abstraction for communicating many types of information. Overall, these technologies mean that the vision of a “digital twin” is much closer to reality: the ability to maintain accurate and up-to-date digital copies of real-world networks can be a foundation for the digital transformation of business. v

Peter Batty is the co-founder and CTO of IQGeo, a provider of geospatial software.

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