Archive for Broadband

Fiber Through the Sewer Coming to US

i3 America the U.S.arm of  the British firm i3 Group, known for deploying local loop fiber through sewers is coming to America. i3 America has announced the first US pilot of its Fibrecity open access network in Quincy, IL Light Reading reports. The firm believes the time is right in the US market, based on the Google (NASDAQ: GOOG) inspired boom in municipal fiber projects said Brian Foley, VP of sales for i3 America. “We are excited to be working with Quincy on this pilot — the city has been extremely cooperative in moving things forward,” Foley told LightReading.

i3 partners with municipalities and municipally owned utilities to deploy the i3 Fibrecity system in sewer systems. “By working in partnership with the municipality, we will take their information about the existing pipes and put that into our GIS systems,”Alasdair Rettie, technical director of i3 Group Ltd. said in the LightReading article. “We will ask where they have problems, because we don’t want to put fiber in areas where there is already an issue. Before we deploy, we will clean the sewers and do a [video survey] of the sewer lines to pick the routes we want to go, and where it’s needed, we will repair the sewers.”

By using the waste-water pipes to deploy fiber, i3 claims to trim 30 percent to 50 percent off the cost of deploying fiber. Light Reading says the i3 patented technology secures the fiber optic cable to the bottom of a sewer  and is actually designed to enable sediment that might normally settle there to move farther downstream.

i3 will build and operate the local loop fiber network for its partners in Illinois on an open access basis, Rettie stated in the article. The parties then either work out a revenue-sharing deal or enable the municipality to use the network for its own purposes, including providing fiber connections to schools, video security monitoring, traffic management, public safety, and/or subsidized connections into homes of low-income residents.

According to Light Reading, the Fibrecity network is an open-access system, based on FTTH optoelectronics from Ericsson AB (NASDAQ: ERIC) and Enablence Technologies Inc. (TMX: ENA) which uses i3′s system of running fiber through sewers to a place  near the home, where the fiber is then micro-trenched to an Optical Network Terminal (ONT) that has four Gigabit Ethernet ports. Fibrecity is designed to use a 1-12 split for its passive optical network, versus the 1-32 split commonly used in US fiber deployments, so each household is guaranteed 100 Mbit/s symmetrically, Rettie says, with the ability to burst, possibly with a boost-button paid service.

By taking an open-access approach, i3 can allow multiple service providers offering different services to address each household. “We encourage much more than triple play,” Rettie told Light Reading. “We have service providers today using IP connections to provide home security services; an applications service provider could use this to provide cloud computing; your employer could rent one of the ports to enable work-at-home. It’s all about thinking outside the box.” Open APIs are built into the i3 approach — it has tied into the APIs of Ericsson and Enablence and can offer service providers various service templates, featuring different upstream and downstream speeds, that they can then choose to offer.

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Fibrecity seems like a no-brainer. Besides the flexibility and cost savings a private network presents, other benefits include:

  1. On-going maintenance – Over the last 8 months on our current network, we have had two 24 hour+ outages due to fires, one outage due to gunshots and one from an auger. None of these incidents would have happened if the clients fiber backbone was in the sewer instead of on poles.
  2. Allows owners to bypass the outrageous pole make-ready demands that utilities make to prevent private fiber networks from being built.  I have seen a private utility delay a public project in public right-of-way for over 2 years.
  3. Finally, i3 says it repairs sewers as needed, which is a money savings that any tax-payer will appreciate.

PAETEC Buys Again

PAETEC has expanded again.  PAETEC Holding Corp.(NASDAQ:PAET) recently announced that it has signed an agreement to acquire Cavalier Telephone Corporation. The acquisition will add Cavalier’s wholly owned subsidiary, Intellifiber Networks’ fiber-optic network to PAETEC’s existing service footprint.

Intellifiber Networks is one of the largest network providers in the nation with a high-capacity fiber network spanning nearly 17,000 route miles and representing over $2 billion of investment. The expansive 12,262 route mile intercity network spans the Midwest and Eastern U.S., as well as 4,689 route miles throughout several existing PAETEC metro areas,  allowing for broad connectivity options for customers. Intellifiber offers scalable network  solutions for service provider, enterprise, and government customers including private networks, low latency routing, SONET services, wavelengths, Ethernet, and data options.

The expanded PAETEC fiber network will encompass a combined 10,609 metro fiber-route miles and 37,023 total fiber-route miles and combined 1,178 collocations. After the closing of this transaction, PAETEC expects to have a local  presence in 86 of the top 100 Metropolitan Statistical Areas (MSAs). The transaction will further solidify PAETEC as one of the largest competitive local communication service providers in the United States

MarketWatch reports PAETEC Holding Corp.will acquire Cavalier Telephone Corporation in an all-cash $460 million transaction. Cavalier will become an indirect wholly owned subsidiary of PAETEC Holding Corp. Cavalier is a privately held company whose majority owner is M/C Venture Partners, a private equity firm based in Boston.

“This planned acquisition of Cavalier fits our strategic plan to add both fiber assets and regional density to better serve our customers and realize increased network synergies, both in the local loop and long haul,” said Arunas A. Chesonis, chair and CEO of PAETEC told MarketWatch. “Cavalier’s fiber infrastructure, network assets and corporate culture make it a perfect match for PAETEC and dramatically strengthen the company in the Eastern United States.”

More Broadband for Michigan

Wireless Internet service provider Air Advantage based in Frankenmuth, MI has been awarded $64 million in combined American Recovery and Reinvestment Act (ARRA) grants and loans to create a wireless broadband and fiber-optic Internet network in Michigan’s central Lower Peninsula and Thumb according to an article on MLive.com. In addition to the federal grants and loans from the he U.S. Department of Agriculture and the U.S. Department of Commerce, Air Advantage plans to contribute more than $10 million toward the project. “A big part of the (federal) grant is about providing people with more options, more affordable Internet access,” said Dawn Zimmer, director of sales and marketing for Air Advantage told MLive.  “Even in 2010, it’s shocking the number of people who have no or very few Internet options.”

The $64.25 million award consists of $31.95 million in grants and $32.3 million in loans which must be used to buy capital equipment such as installation and service trucks, computers, transmitters and receivers, and cannot be used for salaries or for the hiring of new staff, according to David Simmet, vice president of operations at Air Advantage in the MLive article. With this funding the will add more than 200 signal transmitting towers to the company’s existing network of 65 towers, many of which are installed on area water towers, grain silos and cell phone towers. The project will serve 13 counties — Saginaw, Sanilac, Bay, Genesee, Huron, Lapeer, Livingston, Macomb, Midland, Oakland, Shiawassee, Saint Claire, and Tuscola.

The Regional Educational Media Center 10 (REMC 10) will see direct benefits from the stimulus funds awarded. About $9 million of the funds awarded to Air Advantage are earmarked for constructing a 350-mile  fiber optic network throughout the Thumb.  The partners will contract the construction to a  company with expertise in fiber-optic installation. The high-speed network will connect 26 school districts, governmental facilities and Central Dispatch in Huron, Sanilac and Tuscola counties,  according to Robert Frost, director of REMC-10. Frost said the network will allow for collaborative purchasing of network devices and services such as servers, content filters, firewalls, and more. It will also allow for distance learning through high-definition video conference units.

The new network will connect to existing networks in Bay, Lapeer, St. Clair and Saginaw counties and will allow for a direct, high-speed connection to other schools, colleges and universities throughout the state.  “The amount of work they are going to do could change the face of the eastern side of Michigan,” Sheila Stamiris, director of the Frankenmuth downtown development authority and economic development corporation told MLive. “It really is incredible.”

The Air Advantage estimates it will hire an additional 142 employees for positions in equipment installation, technical support, billing,  The firm expects to start hiring in the next few months  This would be a 600 percent increase in jobs for the firm started in 2002. Ms. Stamiris said this likely will put Air Advantage among the city’s 10 largest employers. “They will be doing a lot of things using Frankenmuth as a home base and we are extremely grateful to be in that position,” Ms. Stamiris told MLive.

Norlight Bought by Windstream

Windstream (NASDAQ: WIN), the independent ILEC is going to acquire Q-Comm Corporation, a privately held regional fiber transport and CLEC based in Overland Park, KS for about $782 million. Norlight, a wholly owned subsidiary of Q-Comm has a fiber network in Michigan. The addition of Norlight to the Windstream market will expand its presence as a competitive force in the SMB market. Norlight currently has  about 5,500 SMB customers.

Also included in the deal was Windstream’s purchase of Kentucky Data Link (KDL), another wholly owned subsidiaries of Q-Comm. Analysts suggest that the KDL addition by Windstream will complement its ongoing effort to upgrade and expand the fiber network in its own 16-state ILEC territory. KDL provides  an additional 30,000 fiber route miles to the Windstream network. KDL has about 400 employees and provides fiber services for bandwidth-intensive customers such as wireline and wireless carriers — in 22 states.

“This transaction builds on Windstream’s strategy to become a next-generation telecom provider focused on broadband and enterprise customers,” Windstream CEO Jeff Gardner said in a release.

Windstream operates in 23 states, where it provides service for 3.3 million phone lines, 1.27 million Internet customers and 420,000 digital television customers. It has 9,500 employees and annual revenue of about $4 billion.

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Windstream says it will “increase success-based capital expenditure investments in the near term” with a concentration on “the wireless backhaul and enterprise businesses.”  Lets hope so, because the broadband in Michigan is terrible. According to theory, at least, increased competition for the telco and cableco should drive down prices and increase services.

Michigan Broadband Below Average

Ookla,  the Seattle-based firm that runs www.speedtest.net Website, has just released a mountain of data at Netindex.com that identifies the uploads and download speeds for a myriad of locations across the globe.  According to the Netindex.com web site, the index compares and ranks consumer download test results from Speedtest.net. The value is the rolling average throughput in Mbps over the past 30 days where the mean distance between the client and the server is less than 300 miles.  The results are not good for the US or Michigan.

As of 08-01-10 the Global household download index is 7.61 Mbps and the US  household download index is  8.88 Mbps. The United States  ranks 27th, in the world wand trails countries as:

The results for Michigan are equally disappointing. The Michigan download index is 8.02 Mbps, below the US download index number. Michigan ranks 35th. Michigan ranks 31st for upload speeds. The US national upload index is 2.14 Mbps Michigan’s is 1.62 Mbps.

Most Michigan cities download speeds pale when compared internationally. Niles Michigan ranked 1st in Michigan for download speed of 18.41 Mbps, but nowhere near the best speed available in Seoul, South Korea. The following table lists the top performing Michigan cities and compares them to the international competition as well as major Michigan cities.

LocationMbps - Download
Seoul, South Korea31.59
Bucharest, Romania22.72
Vilnius, Lithuania19.29
Niles, Michigan18.41
Cebu, Philippines17.73
Sault Sainte Marie Michigan17.23
Amsterdam, Netherlands16.16
Oxford, Michigan15.75
Omsk, Russia15.17
Big Rapids, Michigan15.12
San José, California14.41
Marquette, Michigan10.62
Ann Arbor, Michigan10.52
Lansing, Michigan10.50
Grand Rapids, Michigan9.3
Based on millions of recent test results from Speedtest.net, this index compares and ranks consumer download speeds around the globe. The value is the rolling average throughput in Mbps over the past 30 days where the mean distance between the client and the server is less than 300 miles. http://www.netindex.com/download/

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