CA*net II -

CANARIE Community Condo Fiber Networks The Customer Empowered Networking Revolution [email protected] Tel: +1.613.785.0426 CANARIE Inc Mission: To facilitate the development of Canadas communications infrastructure and stimulate next generation products, applications and services Canadian equivalent to Internet 2 and NGI private-sector led, not-for-profit consortium consortium formed 1993 federal funding of $300m (1993-99) total project costs estimated over $600 M

currently over 140 members; 21 Board members CA*net 3 National Optical Internet Consortium Partners: Bell Nexxia Nortel Cisco JDS Uniphase Newbridge CA*net 3 Primary Route CA*net 3 Diverse Route GigaPOP ORAN Condo Fiber Network linking all universities and Netera hospital BCnet Calgary Deploying a 4 channel CWDM

Gigabit Ethernet network 400 km SRnet MRnet Regina Condo Dark Fiber Networks connecting universities and schools Winnipeg ONet Vancouver Seattle 16 channel DWDM -8 wavelengths @OC-192 reserved for CANARIE -8 wavelengths for carrier and other customers

Chicago Multiple Customer Owned Dark Fiber Networks connecting universities and schools Deploying a 4 channel Gigabit Ethernet transparent optical DWDM 1500 km ACORN St. Johns Charlottetown Fredericton RISQ Montreal Halifax

Ottawa STAR TAP Toronto New York CA*net 3 & Community Networks E-research grids Researchers will want to use computing resources of schools and homes [email protected] New grid projects in bio-informatics, pharmaceutical research, particle physics need access to millions of computers Democratization of research Next big discovery in cancer or particle physics could be made at your local high school Customer Empowered Networks

School boards and municipalities throughout North America are building condominium dark fiber networks in partnership with next generation carrier Individual institutions the customers own and control their own strands of fiber Fiber are configured in point to point private networks; or Connect to local ISP or carrier hotel Private sector maintains the fiber Low cost LAN architectures and optics are used to light the fiber These new concepts in customer empowered networking are starting in the same place as the Internet started the university and research community. Customers will start with dark fiber but will eventually extend further outwards with customer control and ownership of wavelengths Extending the Internet model of autonomous peering networks to the telecom world Examples of CEN Customer Empowered Networks Universities in Quebec are building their own 3500km condominium fiber network in partnership with 6 next gen carriers- $US 2million Will deploy and manage their own optics and long haul transmission gear Universities in Alberta are deploying their own 400 km 4xGbe dark fiber network $US 200K

Deploy and manage their own optics and long haul transmission gear Chicago is building a fiber networking linking all public sector institutions - $US 250m City of Montreal is second most fibered city in the world because of municipal owned open access conduit In Ottawa is deploying a 85km- 144 strand condominium network connecting 26 institutions cost $1m US Peel County Missassuaga & Brampton has built a 200km public sector fiber network - $US 5m Many other cities including Ashland OR, Halifax, Toronto are looking at similar initiatives 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 3 rd party at a carrier neutral collocation facility 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 Alberta SUPERnet 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 IRUs 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 - $102 Million GOA Bell - 33%GOA IRU - 67% Bell IRU Aspen View Regional Division # 19 Alberta SUPERnet Example St. Paul Education Regional Division # 1 Elk Point Willingdon BUFFALO TRAILS SCHOOL DIVISION Hairy Hill

Two Hills Elk I sland Public Schools Regional Division # 14 Dewberry Clandonald Vegreville Lavoy Combination: Tulliby Lake Myrnam Vermilion I nnisfree Mannville Holden Marwayne Kitscoty Lloydminster Public School District # 1753

Fibre build Viking Paradise Valley Battle River Regional Division # 31 Use of Existing Infrastructure I rma Wainwright Strome Killam Sedgewick Edgerton Hardisty Heisler Chauvin Forestburg Amisk

Galahad Extended Fibre Network Base Fibre Network Backhaul From Other Vendor Czar Alliance Bell Legend Provost Clearview School Division # 71 Communities with one or more school Coronation Veteran Consort Alberta SUPERnet Impact RURAL COMMUNITIES Current (Typical) Future (Everywhere)

Residences 56 Kbps dial Internet ($85/Month) No high speed Internet Residences High speed DSL residential Internet at urban rates ($40/month) Businesses Some T1 Facilities ($2000/Month average - rates distance sensitive) Some high speed business service on special setup arrangement Businesses High speed business services available at competitive urban rates (eg $820/month - T1) Higher speeds at comparable rates Chicago CivicNet 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 Quebec University Condo Network Construit Projet dmarr venir Bande passante loue Val dOr/Rouyn MAN de Montral MAN dOttawa/Hull MAN de Qubec MAN de Sherbrooke Observatoire Mont-Mgantic Lionel-Groulx Lanaudire

Montreal Public Sector Condominium Networks Sorel-Tracy Marie-Victorin Rosemont Montmorency Maisonneuve Ahuntsic douard-Montpetit Bois-de-Boulogne Vers Qubec St-Laurent/Vanier Vieux-Montral Champlain Grald-Godin

Construit Dawson Projet dmarr venir John-Abbott Andr-Laurendeau Bande passante loue List of Schoolboard Fiber Builds Capitale Rgion-de-Sherbrooke Rivire-du-Nord Seigneurie-des-Mille-Iles Amiante Laval Saint-Hyacinthe Affluents Bois-Francs Draveurs Grandes-Seigneuries Hautes-Rivires Laurentides Patriotes

Premires-Seigneurie Samares Trois-Lacs Chemin-du-Roy Marie-Victorin Sir-Wilfrid-Laurier x x x x x x x x x x x x x x x x x x x

Construction Engineering Study School Board x x x x x x x x x x x x x

x x PROJECT 140 km of fibre optics 80 schools 180 km of fibre optics 66 schools 175 km of fibre optics 52 schools 200 km of fibre optics 80 schools 4 partners 12 km of fibre optics 9 schools 170 km of fibre optics 111 schools 3 partners 250 km of fibre optics 51 schools 170 km of fibre optics 70 schools 4 partners 60 km of fibre optics 12 schools 4 partners 90 km of fibre optics 40 schools 210 km of fibre optics 58 schools 250 km of fibre optics 54 schools 200 km of fibre optics 35 schools 2 km of fibre optics 3 schools 190 km of fibre optics 73 schools 460 km of fibre optics 72 schools 45 km of fibre optics 15 schools 29 km of fibre optics 11 sites 6 km of fibre optics 5 schools 92 km of fibre optics 20 schools

South Dundas IROQUOIS MORRISBURG South Dundas Results Morrisburg , Iroquios Have Fibre Hung Electronics In and Fibre Lit ISPs , ASPs 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. Johns ...and back again 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 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 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) 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)

70 schools 12 municipal buildings 204 km fiber $1,500,000 total cost average cost per building - $18,000 per building 111 schools 45 municipal buildings 165 km $11,500 per building Peel county: Total cost $5m 100 buildings Cost per building $50,000 Typical Payback for school (Real example des affluents north of Montreal) Over 3 years total expenditure of $1,440,000 for DSL service Total cost of dark fiber network for 75 schools $1,350,000 Additional condominium participants were brought in to lower cost to school board to $750,000 School board can now centralize routers and network servers

at each school Estimated savings in travel and software upgrades $800,000 Payback typically 8 16 months Independent Study by Group Secor available upon request Reduction in the number of servers Before fiber Antennas Novell Servers SQL Servers Lotus Notes Servers Tape Backup Servers Ethernet switches/hubs Routers Cache/proxy (Linux) Fire walls (Linux) 78 82 13 2 12 10

108 12 1 After fiber 0 1 3 1 4 98 3 0 1 Big Cost Saving in VoIP for schools Many schools are using dark fiber to enable VoIP telephones to each teachers desk Also free phones in hallways for kids to all kids in other scholl With dark fiber only cost is the one VoIP phone itself VoIP gateway to PSTN is located at school board office Most teachers have never had a telephone in their classroom Has a bigger impact than multimedia, tele-learning etc Schools are ripping out old copper telephone systems and leaving one copper telephone for emergency purpose

For more details hardt.pdf Condo fiber for Business Significant reduction in price for local loop costs No increase in local loop costs as bandwidth demands increase Ability to outsource LAN and web servers to distant location as LAN speeds and performance can be maintained over dark fiber Access to lower cost competitive service providers at carrier neutral hotels New entrants cannot afford high cost of building out their own fiber networks Even small businesses with less than 20 employees can realize significant savings and benefits Examples: Colgate-Palmolive build in Cincinnati Nortel, Cisco, Govt depts in Ottawa

Advantage of Condo Fiber Carrier managed SONET ring SONET Mux and ADM ISP Central Monthly cost Fixed Bandwidth Office Central Office ISP Today: Customer pays 2 telcos for SONET connections Long reach lasers Customer Owned Dark Fiber ISP $50K one time Unlimited Bandwidth ISP $50K one time Unlimited bandwidth Tomorrow: Multiple Customer owned dark fiber links to ISPs

Condo fiber for cities In downtown core minimizes digging up streets If N carriers are trying to deploy service then number of times roads has to be torn up is N squared However with condominium fiber road only has to be torn up once Produces a competitive market place and level playing field New competitive carrier can meet customers at carrier neutral collocation facilities Eliminates market advantage of incumbents In suburban areas eliminates duopoly of cable and TV companies The first company to install fiber into suburban neighborhoods will likely have a natural monopoly In Stockholm home owners have a choice of 4 cable companies Makes cities a much more attractive place for new high tech businesses and service

Facilities based competition in the residential neighborhood? Facilities based competition is alive and well in downtown core The biggest challenge for governments is manage and coordinate the digging up of streets Outside of downtown in big cities Usually only a monopoly telecom provider At best a duopoly How do we introduce facilities based competition into this market (or at least come as close as possible to true facilities based competition)? As well how can we assure scalable high speed Internet services to the home that eventually will support Gigabit speeds or higher? Community Fiber Architecture A community consortia would put together a plan to fiber up all public sector buildings in their community A community can be a province, a municipality, village, etc

A fiber splice box that terminates the fiber at the street side nearby each public sector building such as school, hospital, library is called a Node Community should must insure that potential facilities exist near the for private sector equipment to connect up future home owners colo facility Colo facility allows private sector to extend wireless, VDSL or HFC services to the neighbourhood around the school Public sector buildings will have dedicated fiber strands that connect to a Supernode which is a fiber splice box on the street beside outside of major public sector central facility such as school board office, city hall, university, etc Community should insure that facilities exist nearby the Supernode for the private sector to install equipment to service home owners and businesses colo facility Additional fibers are made available from the Supernode to all Nodes such that competitive service providers can purchase fiber to the node at some future date Possible architecture for large town Central Office For Wireless Company

Carrier Owned Fiber School board office Cable head end Telco Central Office Condominium Fiber with separate strands owned by school and by service providers School VDSL, HFC or Fiber Provisioned by service provider Colo Facility School 802.11b Average Fiber

Penetration to 250-500 homes Marriage of wireless and fiber Many companies building longer range and higher speed versions of 802.11b (11 Mbps) Devices are low power and can be attached to fiber cable to provide inexpensive high bandwidth service for approx 1 km No licensing requirements so can be installed easily and quickly Allows easy extension of school or university LAN into the community Student can access university LAN from just about anywhere in the community Ideal for low cost high bandwidth Internet service to the community No complex traditional wireless systems to manage 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 For Canadian optical manufacturing companies it will provide new opportunities for sales of optical technology and components Historical Reference Points 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 Carriers are not the only decision maker in the last mile Governments and consumers are becoming more active voice in determining the future of broadband to home Do not assume that carrier best technical solution is the only approach Open access is becoming a critical political issue Consumers want more than duopoly of cable and telco Facilities based competition the best Municipalities object to their streets being torn up Dig once bury lots of fiber Residents object to street furniture and antennae An important Role for Government

Governments promote the framework for GITH networks by funding schools, universities, libraries, hospitals and municipal buildings as first customers and early adopters of dark fiber and optical networks Private sector leverages that investment by government to promote high speed Internet access to schools and universities to extend the fiber to the home Electric utility companies, municipal governments, CLECs, SMEs, entrepreneurs, as well as traditional telcos and cablecos can participate as providers, provided they subscribe to the architecture of open access, facilities based competition through dark fiber (or wavelengths) Emphasize the development and use of technology that specifically addresses the new architecture and the last mile, which must therefore be open, cheap and Internet-only 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 Canadas 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 Conclusion Many governments have recognized the importance of access to low cost dark fiber as fundamental economic enabler It will be the 21st century equivalent to the roads and railways that were built in the 20 th century

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