CANARIE

“Building Condominium Fiber Networks For High Speed Internet Access”

http://www.canarie.ca

http://www.canet3.net

Bill.St.Arnaud@canarie.caTel: +1.613.785.0426

Outline

Overview and introductions Canada’s community fiber programs – Bill

St Arnaud Stockholm’s Stokab – Anders Comstedt Sweden’s ICT programs - Anne-Marie

Eklund-Lowinder

Tutorial Objectives

To provide real world case studies on community and municipal fiber networks

To provide information sources and pointers to organizations that will provide assistance and/or funding

Issues facing municipalities Many carriers want to deploy fiber networks

Each carrier will deploy many conduits and or fiber and yet only use a small percentage

Municipalities need to coordinate fiber builds so as to minimize tearing up of road and/or obstruction of traffic

Once a fiber build is done many municipalities insist on a 5 year freeze on any future digging up of road Gives unfair market advantage to carriers who got in under the wire or

have existing infrastructure In fact this is strategic part of many carrier’s business plan

Carriers want to go for low hanging fruit in downtown cores Little interest in serving low profit residential neighbourhoods

Outside of the downtown core unlikely to have many competitive fiber builds

There is a clear trend in all formerly monopoly services to move to unbundled competitive services

Roads and highway systems vs railways: infrastructure was largely “public”, but the services (e.g. trucking) were private and competitive

Electrical distribution systems: regulated monopolies (unbundling is on horizon)

Gas distribution systems: regulated monopolies (unbundling is well underway)

Legacy telecommunications systems: moving to unbundled fiber and facilities based competition

Historical Reference Points

Government intervention? As much as possible governments should have minimum intrusion into the

marketplace. However, sometimes government intrusion in the marketplace will produce

significantly greater benefits to the economy and society otherwise "to do nothing would be to do harm“ E.g. bridges displace competitive ferry service operations Free trade disrupted business plans of many private sector companies Opening up of long distance disrupted business plans of incumbent telcos

Private sector competition in a genuine competitive open market is generally viewed as a good thing. Monopolies are bad Duopolies are ugly

Therefore should governments intrude into the marketplace to actively promote facilities based competition? There is no question such a disruption will impact existing business models and

investment plans. But will the overall benefit be significantly better for the municipality?

What is condominium fiber? A number of organizations such as schools, hospitals, businesses and universities get together

to fund and build a fiber network Carrier partners are also invited to be part of condominium project

Several next generation carriers and fiber brokers are now arranging condominium fiber builds IMS, QuebecTel, Videotron, Cogeco, Dixon Cable, GT Telecom, etc etc

Fiber is installed, owned and maintained by 3rd party professional fiber contractors – usually the same contractors used by the carriers for their fiber builds

Each institution gets its own set of fibers, at cost, on a 20 year IRU (Indefeasible Right of Use) One time up front cost, plus annual maintenance and right of way cost approx 5% of the

capital cost Institution lights up their own strands with whatever technology they want – Gigabit Ethernet,

ATM, PBX, etc New long range laser will reach 120 km

Ideal solution for point to point links for large fixed institutions Payback is usually less than 18 months

Market Drivers First - low cost

Up to 1000% reduction over current telecom prices. 6-12 month payback Second - LAN invades the WAN – no complex SONET or ATM required in

network Network Restoral & Protection can be done by customer using a variety of

techniques such as wireless backup, or relocating servers to a multi-homed site, etc

Third - Enables new applications and services not possible with traditional telecom service providers Relocation of servers and extending LAN to central site Out sourcing LAN and web servers to a 3rd party because no performance impact IP telephony in the wide area (Spokane) HDTV video

Fourth – Allows access to new competitive low cost telecom and IT companies at carrier neutral meet me points Much easier to out source servers, e-commerce etc to a 3rd party at a carrier

neutral collocation facility

Municipal Architecture

School

School board office

School

Telco Central Office

Central OfficeFor Wireless

Company

VDSL, HFC or FiberProvisioned by service provider

Condominium Fiber with separate strands owned by school and by service providers

Carrier Owned Fiber

Cable head end

Average Fiber Penetration to 250-500

homes

ColoFacility 802.11b

Business

Carrier Neutral IX

Node

Advantages Municipality saves significantly on current telecom costs

Chicago sees immediate 20% reduction Other cities seen 50%- 75%

Makes the municipality “21st century” ready Attracts new businesses in multimedia, services, etc

Reduces cost for deploying fiber into neighbourhoods for carriers

Lowers barriers of entry for new carriers and creates competitive open environment

Benefits to Industry For cablecos and telcos it help them accelerate the deployment of high speed

internet services into the community Currently deployment of DSL and cable modem deployment is

hampered by high cost of deploying fiber into the neighbourhoods Cable companies need fiber to every 250 homes for cable modem

service, but currently only have fiber on average to every 5000 homes Telephone companies need to get fiber to every 250 homes to support

VDSL or FSAN technologies Wireless companies need to get fiber to every 250 homes for new high

bandwidth wireless services and mobile Internet It will provide opportunities for small innovative service providers to offer

service to public institutions as well as homes For e-commerce and web hosting companies it will generate new business in

out sourcing and web hosting

RFP models1. In normal RFP for telecom services municipality encourages responses from

condominium fiber suppliers

2. Municipality issues RFP to private sector for a municipal wide condominium fiber network where contractor commits to selling strands of fiber at an agreed upon price before and after the build. In turn the municipality will direct all municipal telcom business to the winner bidder and provide access to all municipal owned ducts – Chicago CivicNet model

3. Municipality issues RFP to private sector for a municipal condominium fiber network, but municipality owns all strands of fiber and sells them to end users or competitive carriers as required – Alberta SuperNet model

4. Municipality uses MAA to force fiber installers to build condominium fiber networks

Negotiating issues Offering commodity Internet bandwidth business as a carrot. Trading municipal right-of-way for condominium fiber Leverage the tax benefits for fiber builder of selling dark fiber vs leasing. Capitalize the telecom budget by moving monthly telecom budget into capital Deal with fiber builders rather than carriers.

Most fiber builders are construction companies who make their money on the construction contract.

Offer upfront financing deals. Some fiber builders are willing to do deals where community may pay 50%-

95% of the fiber build costs. The fiber builder does an overbuild and as the additional strands are sold to businesses or other carriers, a percentage of the profits are returned to the school.

Negotiate umbrella agreements for a large number of public sector institutions across a region.

The institutions contract directly with the carrier or fiber builder, but the terms and conditions are set in contract negotiations with the umbrella organization that represents the collective interests of the institutions.

• Province wide network of condominium fiber to 420 communities in Alberta• Guaranteed cost of bandwidth to all public sector institutions

• $500/mo for 10 Mbps, $700/mo for 100 Mbps• Network a mix of fibre builds and existing supplier infrastructure

(swap/buy/lease)• Condominium approach: All suppliers can

• Buy (or swap) a share of the fibre (during build or after)• Lease bandwidth at competitive rates

• GOA has perpetual right to use (IRU) • Ownership will be held at arms length• GOA/stakeholder rates are costs to run divided over users• Because of fibre capacity, bandwidth can be made available to businesses

at urban competitive rate• Total cost $193m• Bell Intrigna prime contractor

Alberta SUPERnet

Extended Area• 372 communities• GOA/stakeholder needs• Proceeds from

businesses (urban benchmarked rates) to GOA to further network

Base Area• 48 communities• GOA/stakeholder needs• Business proceeds to Bell

(urban benchmarked rates)

- $143 Million GOA

- 100% GOA IRU

- $50 Million

GOA

- 33%GOA IRU

- $102 Million

Bell

- 67% Bell IRU

Alberta SUPERnet IRUs

Current (Typical)Residences

• 56 Kbps dial Internet ($85/Month)

• No high speed Internet

Businesses

• Some T1 Facilities ($2000/Month average - rates distance sensitive)

• Some high speed business service on special setup arrangement

Future (Everywhere)Residences• High speed DSL residential

Internet at urban rates ($40/month)

Businesses• High speed business services

available at competitive urban rates (eg $820/month - T1)

• Higher speeds at comparable rates

RURAL COMMUNITIES

Alberta SUPERnet Impact

National Broadband Task Force Mandate: To map out a strategy and advise the Government

on best approaches to make high-speed broadband Internet services available to businesses and residents in all Canadian communities by the year 2004.

To ensure Canada’s competitiveness in a global economy To address the Digital Divide To create opportunities for all Canadians 35 members including carriers, educators, librarians,

communities, equipment manufacturers, etc Chair – David Johnston www.broadband.ic.gc.ca

•CivicNet - A City-Wide Condominium Fiber Project •connecting up 1600 public sector institutions•Oriented to Development of Backbone Infrastructure•With Gateways to Tributary Systems•More Fiber in More Places Faster•Ubiquitous, Pervasive: 1,600 Locations•E-Z High-Performance Low-Cost Internet Connectivity•Foundation = Existing City Fiber Builds

Chicago CivicNet

À venir

Bande passante louée

Projet démarré

Construit

Observatoire Mont-Mégantic

Val d’Or/Rouyn

MAN de Montréal

MAN de Québec

MAN de Sherbrooke

MAN d’Ottawa/Hull

Quebec University Condo Network

St-Laurent/Vanier

Lanaudière

Maisonneuve

Marie-Victorin

Champlain

Rosemont

Sorel-Tracy

Montmorency

Édouard-Montpetit

Vieux-Montréal

Bois-de-Boulogne

Ahuntsic

Lionel-Groulx

Vers Québec

Gérald-Godin

John-Abbott

André-Laurendeau

Dawson

À venir

Bande passante louée

Projet démarré

Construit

Montreal Public Sector Condominium Networks

School Board

Stud

y

Eng

inee

ring

Con

stru

ctio

n

PROJECT

Capitale x 140 km of fibre optics 80 schoolsRégion-de-Sherbrooke x 180 km of fibre optics 66 schoolsRivière-du-Nord x 175 km of fibre optics 52 schoolsSeigneurie-des-Mille-Iles x x x 200 km of fibre optics 80 schools 4 partnersAmiante x x x 12 km of fibre optics 9 schoolsLaval x x x 170 km of fibre optics 111 schools 3 partnersSaint-Hyacinthe x 250 km of fibre optics 51 schoolsAffluents x x x 170 km of fibre optics 70 schools 4 partnersBois-Francs x x x 60 km of fibre optics 12 schools 4 partnersDraveurs x x 90 km of fibre optics 40 schoolsGrandes-Seigneuries x 210 km of fibre optics 58 schoolsHautes-Rivières x 250 km of fibre optics 54 schoolsLaurentides x 200 km of fibre optics 35 schoolsPatriotes x 2 km of fibre optics 3 schoolsPremières-Seigneurie x 190 km of fibre optics 73 schoolsSamares x 460 km of fibre optics 72 schoolsTrois-Lacs x x 45 km of fibre optics 15 schoolsChemin-du-Roy x 29 km of fibre optics 11 sitesMarie-Victorin x 6 km of fibre optics 5 schoolsSir-Wilfrid-Laurier x x x 92 km of fibre optics 20 schools

List of Schoolboard Fiber Builds

South Dundas IROQUOIS

MORRISBURG

South Dundas Results

Morrisburg , Iroquios Have Fibre Hung Electronics In and Fibre Lit ISP’s , ASP’s all Want In he Fibre Major Employers Inquiring Very Positive Attitude in Community Digital Desert to Digital Oasis

Peel County Municipal Fiber Network

Mississauga, Brampton, Pell 200 km of Fibre 96 strand backbone

“Enough for small country”

12-60 strands elsewhere 12,000 strand-kilometers

Laid end-to-end = Victoria to St. John’s …...and back again

Fredericton Fiber Build

Started as Economic Development tool MUSH, Govt., Research - ISP, carriers

invited to participate Build partners emerged quickly, $50,000

“donated” by three firms Contracting now for 8 km phase 1,

$110,000, complete Sept 2001 48 fiber min.

Ottawa Fiber Condominium

Consortium consists of 16 members from various sectors including businesses, hospitals, schools, universities, research institutes

26 sites Point-to-point topology 144 fibre pairs Route diversity requirement for one member 85 km run $11k - $50K per site Total project cost $CDN 1.25 million Cost per strand less than $.50 per strand per meter 80% aerial Due to overwhelming response to first build – planning for second

build under way

Ottawa Original Estimates Original Engineering Estimates

Original estimates turned out to be 10% higher than RFP responses Estimated cost to connect 22 institutions with 6 fibers to each

institution in a star configuration Total cost $615,000 or approximately $30,000 per institution “on

average” Actual costs range from $5K to $60K depending on how far institution

is from center of star in downtown Ottawa If condo fiber contractor were to double capacity of network (i.e.12

strands to each customer) cost of project would only increase by 10% Or doubling number of participants would increase cost by only 10% (plus

cost of laterals for additional institutions) By doubling number of participants average cost would be less than

$20,000 per institution Ultimately fiber costs could get as low as $1000 per institution if

every building in the city was connected with fiber

Newbridge

CRC

CISCO

OCRI

Nortel

O-C SchoolBoard

Algonquin

O-C Catholic

Carleton

O Heart

Civic

Oconnor CO

55 Metcalfe

Ottawa UOttawaCarletonRegion

ConseilDes Ecoles

NRC

TelesatOttawa General

March

Carling

Baseline

Greenbank M

erivale

Merivale

Bronson

Laurier

Rideau

St. Laurent

Smythe

Blair R

d

20

19

18b 18a

17

16

15

14

13

12

11a

11b

9b

10

9a

6

5a

5b

3

8

7a

4

2

1b1c1a

1d

7b

Section 1a – 96 strandsSection 1b – 12 strandsSecion 1c – 12 strandsSection 1d – 96 strandsSection 1e – 12 strandsSection 2 – 36 strandsSection 3 – 12 starndsSection 4 – 24 strandsSection 5a – 24 strandsSection 5b – 12 strandsSection 6 – 12 strandsSection 7a- 12 strandsSection 7b – 12 strands

Section 8 – 12 strandsSection 9a – 96 strandsSection 9b – 72 strandsSection 10 – 12 strandsSection 11a – 12 strandsSection 11b – 60 strandsSection 12 – 12 strandsSection 13 – 48 strandsSection 14 – 12 strandsSection 15 – 48 strandsSection 16 – 12 strandsSection 17 – 36 strandsSection 18a – 36 strandsSection 18b – 24 strandsSection 19- 12 strandsSection 20- 12 strands

1e

Main Splice Box for CrossConnection Of Fibers BetweenParticipating Institutions

Splice Box

Note: This a reference installation. Final Configuration will vary depending on number of participants and additional point to point fiber requirements.

Section Cost Detail

Segment Length Fib

er

Count

Splice C

ount

Type

(Aerial/C

onduit)

Difficulty L

eve

l

(1-L

ow

,2-M

ed,3

-Hig

h)

Indoor

Insta

llation

Indoor Installation

(Labour - Mat.)

Outdoor Installation

(Labour - Mat.)

Right of ways (Negociation

and/or Approuval)

Engineering and Project

management Total Cost Annual

Maintenance

1a 500 m 96 1 C 3 1 5,000 $ 6,920 $ 125 $ 3,329 $ 15,374 $ 500 $

1b 1000 m 12 1 C 1 1 5,000 $ 7,240 $ 250 $ 2,898 $ 15,388 $ 1,000 $

1c 500 m 12 1 C 1 1 5,000 $ 4,740 $ 125 $ 2,173 $ 12,038 $ 500 $

1d 600 m 96 1 C 1 1 5,000 $ 6,920 $ 150 $ 3,518 $ 15,588 $ 600 $

2 3000 m 36 2 C 1 - $ 20,440 $ 750 $ 6,638 $ 27,828 $ 3,000 $

3 1200 m 12 1 A 2 1 5,000 $ 7,040 $ 300 $ 2,948 $ 15,288 $ 600 $

4 1300 m 36 1 A 3 - $ 9,220 $ 325 $ 2,949 $ 12,494 $ 650 $

5a 3200 m 24 2 A 1 - $ 14,560 $ 800 $ 4,992 $ 20,352 $ 1,600 $

5b 500 m 12 1 A 1 1 5,000 $ 3,740 $ 125 $ 1,973 $ 10,838 $ 250 $

6 2600 m 12 2 A 3 1 5,000 $ 17,480 $ 650 $ 5,666 $ 28,796 $ 1,300 $

7a 2500 m 24 2 A 1 - $ 12,460 $ 625 $ 4,117 $ 17,202 $ 1,250 $

7b 800 m 12 1 A 1 1 5,000 $ 4,640 $ 200 $ 2,288 $ 12,128 $ 400 $

8 5000 m 12 3 A 3 1 5,000 $ 31,720 $ 1,250 $ 9,594 $ 47,564 $ 2,500 $

9a 2800 m 96 2 A 3 1 5,000 $ 21,840 $ 700 $ 10,660 $ 38,200 $ 1,400 $

9b 3000 m 72 2 A 3 1 5,000 $ 21,880 $ 750 $ 9,726 $ 37,356 $ 1,500 $

10 2000 m 12 1 A 3 1 5,000 $ 12,240 $ 500 $ 4,348 $ 22,088 $ 1,000 $

11a 4500 m 12 3 A 1 1 5,000 $ 20,220 $ 1,125 $ 7,069 $ 33,414 $ 2,250 $

11b 500 m 60 1 A 1 - $ 4,700 $ 125 $ 1,565 $ 6,390 $ 250 $

12 2000 m 12 1 A 1 1 5,000 $ 8,240 $ 500 $ 3,548 $ 17,288 $ 1,000 $

13 2200 m 60 2 A 1 - $ 13,000 $ 550 $ 5,350 $ 18,900 $ 1,100 $

14 600 m 12 1 A 1 1 5,000 $ 4,040 $ 150 $ 2,078 $ 11,268 $ 300 $

15 2200 m 48 2 A 1 - $ 12,520 $ 550 $ 4,726 $ 17,796 $ 1,100 $

16 1100 m 12 1 A 1 1 5,000 $ 5,540 $ 275 $ 2,603 $ 13,418 $ 550 $

17 2200 m 48 2 A 2 - $ 14,720 $ 550 $ 5,166 $ 20,436 $ 1,100 $

18a 8900 m 48 5 A 1 2 10,000 $ 41,500 $ 2,225 $ 19,289 $ 73,014 $ 4,450 $

18b 3000 m 36 2 A 1 1 5,000 $ 14,440 $ 750 $ 6,438 $ 26,628 $ 1,500 $

19 300 m 24 1 A 2 2 10,000 $ 3,680 $ 75 $ 2,931 $ 16,686 $ 150 $

20 2000 m 12 1 A 2 1 5,000 $ 10,240 $ 500 $ 3,948 $ 19,688 $ 1,000 $

Total 60000 m 110,000 $ 355,920 $ 15,000 $ 142,528 $ 623,448 $ 32,800 $

Logical Layout of Topology

Newbridge CRC

OCRI

CISCO

Nortel

Carleton

Ottawa U

NRC

Telsat

In reference model each institution has been assigned 6 strands to terminate on, or about 55 Metcalfe St

Example: Carleton U has 6 strands2 would cross connect to NRC/ONet2 strands would connect directly to OttawaU2 strands would connect directly to CRC(At NRC Carleton could interconnect at layer 3 with other organizations

Typical Fiber Capital Costs

Average total cost between $7 and $15 per meter as follows: Engineering and Design:

$1 - $3 per meter for engineering, design, supervision, splicing Plus Installation:

$7 to $10 per meter for install in existing conduit; or $3 to $6 per meter for install on existing poles $25 to $100 per meter if new trenching required $10 tp $20 per meter for sewer installation

Plus Premise termination: Average $5k each

Plus cost of fiber: 15¢ per strand per meter for 36 strands or less 12¢ per strand per meter for 96 strands or less 10¢ per strand per meter 192 strands or less 5¢ per strand per meter over 192 strands

Condo Fiber Costs - Examples Des affluents: Total cost $1,500,00 ($750,00 for schools)

70 schools 12 municipal buildings 204 km fiber $1,500,000 total cost average cost per building - $18,000 per building

Mille-Isles: Total cost $2,100,000 ($1,500,000 for schools) 80 schools 18 municipal buildings 223km $21,428 per building

Laval: Total cost $1,800,000 ($1,000,000 for schools) 111 schools 45 municipal buildings 165 km $11,500 per building