Tag Archives: fttp

The copper GigaWeasel lurks under AT&T’s fiber umbrella

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You can see the fiber from here.

AT&T is casting a new shadow on its faster-than-average tiers of service. Instead of calling 300 Mbps copper service Gigapower, it’ll now lounge under the AT&T Fiber umbrella. At least that’s how an AT&T press release reads, when you connect all the dots.

The release says

Under the AT&T Fiber umbrella brand we will use a variety of network technologies to connect more homes, apartments and business customer locations to ultra-fast and low-latency internet speeds. This new brand includes, but is not limited to, the former AT&T GigaPower network. We will announce additional network technologies and products in our AT&T Fiber umbrella brand in the near future.

When AT&T starts talking about “a variety of network technologies” under an “umbrella brand”, whatever that is, you can bet the ranch that the roads won’t be clogged with AT&T fiber trucks. Particularly if you live on a ranch.

The GigaWeasel, sorry, GigaPower brand was introduced in Austin, as AT&T scrambled to respond to Google Fiber’s imminent arrival. There probably are some places where you can get fiber-to-the-premise gigabit service in Austin and the several dozen metro areas where AT&T subsequently claimed to be offering it. Probably. But if you live or work on one of the lucky streets where GigaPower service is available, there’s an excellent chance you’d be told the best you can get is 300 Mbps via copper lines.

There’s glass in the network somewhere, so that’s apparently enough for AT&T’s flacks to claim that last mile copper comes under the fiber umbrella.

There’s no mystery about what AT&T is doing. It’s made it clear that high potential areas like dense central business districts and wealthy neighborhoods will get the loving attention of its capital investments – fiber, in other words – while merely affluent customers will get to keep their copper-based service, with or without a fiber umbrella. Rural and inner city communities don’t even have that much to look forward to: as wireless towers go up, copper lines will come down.

Fiber gets you more than copper, and copper gets you more than wireless. That’s basic physics and word games won’t change it.

Muni fiber build RFP issued by Union City, California

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A lot of long haul fiber criss-crosses through Union City, a town of about 70,000 people tucked in between Hayward and Fremont in the East Bay area, just north of Silicon Valley. The City of Union City has issued a request for proposals from companies interested in bidding to “design and install a high-speed dark fiber network in City-owned conduit” to take advantage of that wealth, and to spur development of a new business and residential area…

The Union City Station District is a high-density development area located around the Union City BART Station. At buildout, the Station District will have 1.2 million square feet of office and 850+ residential units and live-work space along 11th Street.

An adjacent 80-acre in the greater Station District area is undeveloped and underdeveloped with some public streets. This area is zoned for new office, research and development, and flex-industrial businesses. Conduit and fiber will need to be installed in this area as new streets and additional points of access are built to accommodate the growth in a second phase of design and installation of a City-owned high-speed fiber network.

That high speed network will be built from a base that includes several more miles of city-owned conduit, and adjacent and intersecting middle mile fiber, including routes owned or operated by BART, PG&E, Level 3, Zayo, OpticAccess, AT&T, Verizon and XO Communications.

To answer the first question that always gets asked, yes, the City has a budget for it.

The deadline for questions is 11 October 2016 and proposals must be submitted by 18 October 2016. The RFP documents include the required elements for responses, as well as maps and plans of the area.

The official documents can be downloaded here, and that’s where any updates will be posted. If you’re just curious, here are direct download links that are current, as of today:

RFP for high speed fiber in the Union City Station District
Exhibit A
Exhibit B
Exhibit C

Tellus Venture Associates assisted the City of Union City in identifying the market opportunity and in developing the RFP. I’m not a disinterested commentator. Take it for what it’s worth.

Fiber gems stand out on California’s central coast

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The industrial/commercial broadband Star Rating system developed by Tellus Venture Associates for the Broadband Consortium of the Pacific Coast shows a wide variation in high grade broadband infrastructure across San Luis Obispo, Santa Barbara and Ventura counties.

In the BCPC region, most commercial and industrial census blocks rated 1 Star or less, however there were ample instances of 2 Star, 3 Star and even some 4 Star Ratings. The highest aggregate rating for a city was found in San Luis Obispo, which rated 2 Stars overall. Otherwise, aggregate ratings in incorporated cities in Santa Barbara and San Luis Obispo counties were at a half-Star or less. Ventura County cities rated higher, up to one and a half Stars.

On an aggregate basis, the City of San Luis Obispo’s 2 Star the result of averaging many 3 Star and No-Star areas. The 3 Star areas are served by a gigabit-class FTTP network operated by Digital West. We were able to include it in the assessment because the company provided a sufficiently detailed map of its system.

With two exceptions, aggregate ratings for communities in Santa Barbara County and the rest of SLO County were all No Stars. The Cities of Santa Barbara and Goleta earned Half Star ratings, and probably would have ranked higher if better fiber network map data was available. The information we had about long distance and metropolitan fiber routes in those two cities indicated that if better information about the availability of service on those networks is provided by the companies involved, particularly Crown Castle, then the ratings would go up.

The low average for the remainder of Santa Barbara County disguises several areas of excellence, including 3 Star locations in Carpenteria, Lompoc and Santa Maria, and a significant number of locations in Santa Maria that rated 1 Star or 2 Stars.

In Ventura County, aggregate ratings for cities ranged from No Stars in the City of Ventura to half Stars in Moorpark, Ojai and Simi Valley, to one Star in Oxnard and Port Hueneme, to one and a half Stars in Camarillo and Thousand Oaks. Higher aggregate ratings correlate to the widespread presence of Verizon’s FiOS fiber to the premise infrastructure. Areas served by AT&T did not tend to do as well.

There were several focused areas of excellence, including 3 Star and 4 Star locations in Camarillo, Moorpark, Oxnard, City of Ventura, Simi Valley and Thousand Oaks. The unincorporated Casa Conejo community was rated 2 Star, in aggregate.

Some of the city and county-scale maps showing Star Ratings for the three counties are available in the report and subsequent update we produced for BCPC, and all of them can be downloaded via the links below. An interactive version is in the works, and I’ll have a post here about it as soon as it’s up.

Broadband Analysis and Planning, Broadband Consortium of the Pacific Coast, Final Report, 11 April 2016
Broadband Analysis and Planning Broadband Consortium of the Pacific Coast Update, 30 June 2016
Star Rating maps – San Luis Obispo County
Star Rating maps – Santa Barbara County
Star Rating maps – Ventura County

Star Ratings show where to find high tech, industrial class broadband

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The best place on California’s south central coast – on the whole – to look for commercial or industrial real estate with access to fast, fiber optic broadband service is San Luis Obispo. But there are plenty of other cities in the SLO – Santa Barbara – Ventura county region with pockets of fiber availability that are as good or, in many cases, better.

In the course of a doing a regional broadband assessment for the Broadband Consortium of the Pacific Coast (BCPC), we developed a method for rating the availability of commercial and industrial-class broadband infrastructure. We’ve been using our broadband report card methodology – [originally developed for the East Bay Broadband Consortium]() – to evaluate the primary broadband infrastructure that’s generally available in a city or county. While it’s proven to be an excellent to gauge the broadband infrastructure that residents and the vast majority of businesses use and the overall condition of incumbent telephone and cable company networks, more detail is needed to assess whether a business district is equipped to attract high tech, bandwidth-intensive companies.

The commercial/industrial Star Rating system looks specifically at areas of a community that are zoned for commercial or industrial purposes, and then uses a point system to rate the broadband infrastructure that’s available, on a census block level.

If an industrial or commercial area has no fiber to the premise available at all and the primary infrastructure fails to get at least an average – “C” – grade, then it’s a No Star location. If the primary infrastructure gets at least a “C” grade or if it meets bare minimum standards – a “D” grade – and some kind of FTTP is available, it’s a 1 Star area. Additional Stars are awarded for faster, gigabit-class service and open access dark fiber, all the way up to 5 Stars.

In the future, we’ll look at including advanced copper technologies in the rating – G.Fast and DOCSIS 3.1 are candidates – but only where the underlying network has been engineered to support it. It’s a given that bolting custom electronics onto available copper lines – even failing, “F” grade facilities – or bonding lines together can produce fast circuits. But the need to resort to such heroic measures is confirmation of poor infrastructure, and not a reason to celebrate.

We did two runs of the analysis, with more city zoning data and a refined methodology the second time around. Results from both runs were consistent and did a good job of highlighting where the kind of broadband infrastructure high tech companies look for is available in the three counties. More on that tomorrow.

Broadband Analysis and Planning, Broadband Consortium of the Pacific Coast, Final Report, 11 April 2016
Broadband Analysis and Planning Broadband Consortium of the Pacific Coast Update, 30 June 2016
Star Rating maps – San Luis Obispo County
Star Rating maps – Santa Barbara County
Star Rating maps – Ventura County

Google Fiber finds a balancing point between home and business FTTP

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Google Fiber is rolling out service plans for small businesses, with prices ranging from $70 a month for symmetrical 100 Mbps service to $250 a month for a symmetrical gigabit, all with no data caps. The price for a gig is considerably more than Google’s standard $70 a month residential rate, but it also allows for more bandwidth-intensive uses. Up to a point.

For example, the acceptable use policy for Google’s residential service clearly prohibits running an online business via the connection…

You agree not to use or allow third parties to use the Services provided to you for any of the following purposes…

To operate servers for commercial purposes. However, personal, non-commercial use of servers that comply with this AUP is acceptable, including using virtual private networks (VPN) to access services in your home and using hardware or applications that include server capabilities for uses like multi-player gaming, video-conferencing, and home security.

On the other hand, the small business acceptable use policy says nothing about operating a server for commercial purposes, except you’re not allowed…

To create substitute or related services through the use of or access to the Services (for example, to use the Services to provide web hosting services to third parties).

Nor can you resell Internet service, including offering it to tenants or hotel guests, except in common areas of your business. Google clearly intends to stay on the retail side of the business and maintain a direct relationship – include a direct, monthly bill – with end users.

A business that supports a couple dozen employees will consume more bandwidth than a typical household that can occasionally burst at higher speeds. Running a public facing server will cost a little more – the benchmark price for the necessary static IP address is $20 a month for one, $30 for five. But assuming Google has enough backhaul bandwidth to reliably deliver symmetrical 100 Mbps speeds to a business, the trade off between the low end small business package and gigabit residential service – both priced at $70 – is a fair one.

San Francisco FTTP analysis embraces economic reality

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The fiber-to-the-premise analysis run by the City and County of San Francisco nailed it: providing gigabit capability to every home and business in the City means either treating it like a normal municipal utility and taxing everyone to pay for it – $43 a month, they figure – or taxing everyone less – $26 a month – and making up the rest with subscription fees from people that want to use it.

The everyone pays, everyone gets model means a big initial buildout for something close to a gigabuck, with the $43 monthly fees split between paying that off and running the system as a municipal utility. The everyone pays, users pay more model brings in a private sector partner to build and run it, with the $26 everyone pays covering construction and some core operating costs, and the monthly subscriber fee – $70 for residences, $100 for businesses – paying the bulk of operating expense.

The report also looks at a couple of different market-based models, where network buildout is driven by demand, and estimates that it would pay for itself with somewhere between a 30% and 40% share of the market, depending on how it’s structured. Until the system gets over the sub count hurdle, the gap will have to be filled by taxpayer dollars, one way or another. San Francisco’s analysis did not include a demand study, but it does factor in market share as a significant risk factor.

San Francisco’s report is a high level analysis, and good reading if you like that sort of thing. It’s not an action item, so it just has to ask all the questions. It doesn’t need to answer them. Yet.

Google adopts Santa Cruz muni fiber model in Huntsville

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The City of Huntsville, Alabama is following Santa Cruz’s fiber lead: building a fiber to the home (and business) network and leasing it out to a private operator. In Huntsville’s case the private operator is Google Fiber, while in Santa Cruz the partner is a local independent Internet service provider, Cruzio.

The lead consultants on the Huntsville project – CTC Technology and Energy – applied the lessons they learned working for the City of Santa Cruz

The partnership model announcement today between Huntsville and Google Fiber is on the model of that pioneered by Westminster, Maryland in 2014 and by Santa Cruz, California last year…

This innovative, shared-risk partnership model puts the locality in the business of building infrastructure, a business it knows well after a century of building roads, bridges, and utilities. The model leaves to the private sector (in this case, Google Fiber and any other provider that chooses to lease Huntsville fiber) all aspects of network operations, equipment provisioning, service delivery, and customer service.

The Huntsville Board of Utilities approved the project on Tuesday, committing to backfill any revenue shortfalls, up to a point.

Tellus Venture Associates is assisting the City of Santa Cruz with its fiber project. I’m not a disinterested commentator, take it for what it’s worth.

Santa Cruz fiber love becomes serious city business

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It’s a love fest, several Santa Cruz city council members declared on Wednesday afternoon, as they unanimously approved 1. moving ahead with negotiating a fiber to the home partnership with Cruzio, a local independent Internet service provider, and 2. pursue lease revenue bonds to pay the lions share of the tab. That city-financed portion – Layer 1 in Internet lingo – could go as high as $50 million. The core network – the fiber in the ground – is pegged at about $35 million. Another $7 million is earmarked to pay for customer connections and there’s an allowance for start up, bond financing and other costs.

Cruzio will have responsibility for buying and installing the electronics – Layer 2 – except for the terminals installed on subscriber homes and businesses, and for Layer 3, the Internet bandwidth. The city’s bonds will be paid back by revenue from the system. Final terms haven’t been set, but the model currently under discussion has Cruzio paying $6 per month for every premise passed and another $30 for every subscriber.

The market research done by the city indicates that an eventual take rate of 34% will pay back the investment over time. That’s about 7,500 subscribers, including the approximately 3,000 that Cruzio will transfer from its current service to the FTTH system. Plan B is for Cruzio to pay 80% of any financing shortfall, with the city picking up the remaining 20%.

Santa Cruz mayor Don Lane was clearly on board with the love fest, but he also added a dose of reality before the vote…

My enthusiasm for this is very high, but I think it’s so important that we recognise the magnitude of the commitment we’re making. I think it’s a really worthwhile commitment and it’s really well vetted. Everything is right about it. But it is something new, we’re taking a little bit of risk here, and I just think we should go into this with our eyes wide open about that, so we’re not saying to the community ‘oh, this is just dreamy and perfect’. It’s a serious investment, it makes sense and it’s a business deal. That’s what we have and I think it’s a good one.

That investment is expected to boost Santa Cruz’s economy, economic development director Bonnie Lipscomb said as she briefed council members on the project. High tech companies are moving into Santa Cruz, local residents want to telecommute rather than slug it out over highway 17 to Silicon Valley every day, and investors are looking at the community in a different light. Lipscomb said that investors from as far away as China have heard about the fiber project, and expressed interest because of it. It’s not just that fiber will be available to some – as it already is in downtown Santa Cruz – but that it’ll be available to all. That’s because it’s a city-led project, Lipscomb explained…

Another important element is to talk about is ubiquitous coverage across the city. That’s one of the unique aspects of this being a city network and this being a utility that’s owned by the city, a municipal government. We’re able to actually take this fiber network across every parcel in Santa Cruz. If this were Comcast, if this were another Internet service provider, the challenges are, particularly in a for profit business, is that you go where people are willing to pay for the service. One of the things that we’re really enabling is to level the playing field, so that everyone has access to this fiber network.

Next steps are for the City and Cruzio to agree on detailed deal terms, and arrange for the bond financing. That’s a process that’s likely to take months rather than weeks but, it is hoped, not very many months.

Documents from the 8 December 2015 council meeting:

City of Santa Cruz fiber project staff report, 2 December 2015
CTC market analysis, November 2015
CTC financial forecast addendum (with current deal terms), November 2015
CTC financial forecast, July 2015
Market survey prepared by Cruzio, November 2015

Documents from the 23 June 2015 council meeting:
City of Santa Cruz fiber project staff report, 17 June 2015
Cruzio FTTH proposal to the City of Santa Cruz, 23 June 2015
CTC costs estimates for a Santa Cruz FTTH system, May 2015

Tellus Venture Associates is assisting the City of Santa Cruz with its FTTH project. I’m not a disinterested observer. Take it for what it’s worth.

Santa Cruz city council unanimously approves muni FTTH

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The vote was seven to nothing, as the Santa Cruz city council moved ahead this afternoon with a plan to build a city-owned dark fiber network that will reach every home and business in town. Under the current plan, the system will be leased to Cruzio, a local independent Internet service provider. Cruzio will light the fiber – buy and maintain the electronics, and provision the Internet bandwidth – and run the business. The cost to the city is in the $30 million range. It’ll be financed with lease revenue bonds, which will be repaid via revenue generated by Cruzio. More details later.

Tellus Venture Associates is assisting the City of Santa Cruz with its FTTH project. I’m not a disinterested observer. Take it for what it’s worth.

Santa Cruz city council considers FTTH business plan and market data today

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A business model and an outline of a deal to build a fiber to the home (and business) system in Santa Cruz will be on the table at this afternoon’s city council meeting. In June, the Santa Cruz council authorised city staff to negotiate a public/private partnership agreement with Cruzio, a local Internet service provider. The basic terms are now ready for review. The concept is for the City to pay for and own the fiber, and lease it to Cruzio. As the background report prepared for council members explains it…

  1. The City of Santa Cruz will be responsible for building and maintaining the dark fiber infrastructure (often referred to as the Outside Plant or Layer 1) while Cruzio will be responsible for the electronics (Layer 2) as well as the internet exchange and internet service provider as the exclusive retailer on the network (Layer 3)
  2. Cruzio will pay a combination of per passing and per subscriber fees (to be determined once final costs are established)
  3. Cruzio will share risk with the City of Santa Cruz by backfilling 80% of the debt service for bond payments should revenue fall short
  4. Cruzio will design as the network partner, in partnership with the non-profit National Development Council, Economic Development’s financial advisor and consultant for the bond issuance.

Links to the financial analysis and market research prepared for the meeting are below. The financial model uses a lease payment of $6 per premise passed and $30 per subscriber (both per month) as a working assumption. In other words, Cruzio would pay the City $6 a month for every home and business passed by the network, and another $30 if someone at that address subscribes. The City would use that revenue to make bond payments and pay for maintaining the core, dark fiber network.

The financial analysis puts the necessary take rate at 34%, a level the research shows could be reached at a price point of $85 per month for gigabit Internet service. The take rate jumps to 54% at $75 and 82% at $55 per month. Competition will have an impact. AT&T and Comcast are two of the three incumbents in Santa Cruz – Cruzio is the third – and will certainly target that demand as well. But Cruzio has been competing in that arena for more than 25 years and will be starting the game with a base of about 3,000 subscribers and only needs to raise it to 7,500.

City of Santa Cruz fiber project staff report, 2 December 2015
CTC market analysis, November 2015
CTC financial forecast addendum (with current deal terms), November 2015
CTC financial forecast, July 2015
Market survey prepared by Cruzio, November 2015

Documents from the 23 June 2015 council meeting:
City of Santa Cruz fiber project staff report, 17 June 2015
Cruzio FTTH proposal to the City of Santa Cruz, 23 June 2015
CTC costs estimates for a Santa Cruz FTTH system, May 2015

Tellus Venture Associates is assisting the City of Santa Cruz with its FTTH project. I’m not a disinterested observer. Take it for what it’s worth.