Fibre to the Home as a Municipal Infrastructure as a Service

Lance G. Douglas | Chairman & CEO – Lightcore Group, Inc.

“Open & Shifting: The Future of Networking and Municipal Connections”

@Cybera #CyberSummit14 CROWDSOURCING INNOVATION | Banff, Alberta

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Meet Lance

CHIEF CUSTOMER CHAMPION / FOUNDER: Lightcore Group, Inc. DRIVING PASSION: making the world awesome for everyone. SINGULARITY OF CAREER FOCUS: creating mutual “Repeatable Successes”.

Born and raised in Calgary; aged in Quebec for short spell; father of two; husband of the most patient wife in the world; half Dutch by marriage.

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Meet Lightcore Group

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Our Journey Together, Today…

FTTH Municipal IaaS 01 | Perspective on Technology’s Role in Business

02 | User Experience is the Driving Force of Business

03 | Municipal Anti-Business Model

04 | What Exactly is the Municipality’s Product?

05 | The Last-Mile = First-Mile of Opportunity

06 | Municipal IaaS Traction

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00 | What is FTTH?

The Layer-1 infrastructure that connects a dwelling to a co re agg rega t i on / gateway point with fiber optic cabling. Or simply put: the currency plane for participation in the digital economy.

“Business is a for-profit expression of experience.”

01 | Perspective on Technology’s Role in Business .

“Technology is a set of tools, sometimes used by business to improve, or even define, an

experience.”

01 | Perspective on Technology’s Role in Business

“User Experience is the Driving Force of Business, Technology, and Lifestyles.”



Business

Technology

Better User

Experience

“The convergence of the two

== better

experience.”

.


Launching a Canadian FTTH Service Provider

Personal go-to-market approach was to micro-size concepts and deployment strategies of giant

telcos.

.


Launching a Canadian FTTH Service Provider

Personal go-to-market approach was to micro-size concepts and deployment strategies of giant

telcos. FAIL


Saving Grace #1 “A complex system that works is invariably found

to have evolved from a simple system that worked.”

- John Gall


Marketing a Canadian FTTH Service Provider Initial market evaluation and segmentation joy

was based on community love.


Marketing a Canadian FTTH Service Provider Initial market evaluation and segmentation joy

was based on community love. EPIC FAIL


What happened? We were expecting a 30% take-rate, based primarily on Community Love. The reality was that only 25% was of t h a t m i n d s e t , b u t correctly only 30% of those would make the purchase.

Community Love Reality

Apathy (75%)

Community: Yes, but No Thanks (17.5%) Community: Yes, And Yes (7.5%)


The Perception Paradox:

Most people don’t volunteer to pay

the gov’t for anything, and

locals see O-NET as a gov’t

program.

Municipal Government

Network Owner (non-profit)

Network Operator

(non-profit + RSP)

Retail Service Provider

(for-profit competitor)

Customer Citizen


Learned Axioms 1.  “Municipalities are NOT businesses.” 2.  “Citizens are not customers.”


Saving Grace #2 “Focus on the user and all else will follow.”

- Google

.


How, and why, does a municipality approach FTTH?

.


How, and why, does a municipality approach FTTH?

Citizens expect, or demand, opportunity.

.

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What is Municipal IaaS

Infrastructure-as-a-Service IaaS

“IaaS is the virtual delivery of computing resources in the form of hardware, networking, and storage services.” – Dummies.com “Municipal IaaS is the unified delivery of basic community resources in the form of roads, right or ways, and governance.” – Lightcore Group


.

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Community = Opportunity

Community-as-a-Service

muni services

CaaS Platform-as-a-Service

muni systems

PaaS Infrastructure-as-a-Service

muni facilities

IaaS


Typical Citizen Expectation of Municipal Involvement

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Cloud Analogy

CaaS

Permitting

Buses & Trains

Management

Taxi’s

Retail Shops

Data

Gas Service

Power Services

Global Travel

Municipality D

elivered

Priv

ate

Sec

tor

PaaS

Municipality M

anaged

Priv

ate

Sec

tor

Policies & Bylaws

Water Lines

Council

Traffic Signals

Sensors

e.g. Power Lines

e.g. Gas Lines

Airport

Malls

e.g. Power

Priv

ate

Sec

tor

e.g. Gas

OpCo

IaaS

Municipality O

wned

Social Tools

Landfills

Governance

Sewers

Roads

Water

RoW’s

NetCo RSP

Infrastructure & Governance Core

Interpretations of Governance and Infrastructure in

Action.

Management, services, and

delivery as stability.


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05 | Last Mile == First Mile of Opportunity

Remove the Barriers

•  for all citizens and businesses, existing and potential •  for market competition to drive up quality and

reliability

Better by design •  build for the future while addressing today’s needs •  success is repeatable and transferrable among

muni’s.

No lock-in •  abstraction entices innovation on all fronts: •  portability is important for growth and scale of value

Lifestyle improvements

•  unified open access paves the way for community wide services, and new ideas.

Better spend •  muni’s need to upgrade their middle-mile infra-

structure already. •  the IaaS approach is risk mitigation

.

What can that new telecom look like when infrastructure is a service?

The New Telecom “can”:

Answer the Domain 2.0 challenge

The New Telecom “can”: Deploy over M:M NetCo’s

The New Telecom “can”:

Finally, Be Agile,

Nimble, and Disruptive

“Open Access” requires market competition.

“Equal Opportunity” requires equal access.

The “Digital Economy” only favours

“Connected Communities.”

Being connected is beyond a critical service.

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06 | Municipal FTTH Traction

CANADA OPERATIONS Feasibility & Design Projects: >600K homes passed Major Market Launches: 2 to 3 in 2015 Major FTTH Announcement 1 still to come in 2014

US OPERATIONS I&R Jobs Growth: 100-200 Techs in 2015

KEY TAKEAWAY

Municipal Product == “Opportunity” Municipal Citizen == “Life”

Successful Municipal FTTH ===

“Empowering Opportunity for Better Lives”

Thank you for the opportunity to share!

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100% wireless technologies share a limited physical medium.

PLUS

Municipalities are density and economies of scale.

EQUALS

The inverse of both Metcalfe’s and Reed’s laws.

Appendix A: Municipal Wireless Barrier: B.I.R.D.S.

Barriers | Interference | Reflections | Distance | Security

Fibre to the Home as a Municipal Infrastructure as a Service

Technology

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