Massachusetts
Telecommunications
Symposium
Broadband Overview
John L. Toccalino
Director Integrated Networks
913.458.7995
913.220.5330 Mobile
Toccalinoj @bv.com
Multiple Definitions

Broadband The capability of supporting, in both the
provider-to-consumer (downstream) and the
consumer-to-provider (upstream) directions, a
speed in excess of 200 kilobits per second (kbps) in
the last mile
FCC 1999 Telecommunications Act Deployment Report
07/26/04
Page - 2

“High-speed” Services with over 200 kbps
capability in at least one direction. The term highspeed services includes advanced
telecommunications capability

The International Telecommunications Union’s (ITU)
defines broadband service as 1.5 Mbps
Speed Equals Time
Downloading the DVD Movie “The Matrix” 7.8 GB
Minutes
Hours
Modem 56 kbps
Days
13 days
Pony Express
11 days**
ISDN 128 kbps
5 ½ days
Cable Modem 1.5 Mbps
11 hrs 36 min
T-1 1.54 Mbps
11 hrs 12 min
10 hrs*
PON OC-3/32
3 hrs 36 min
DSL 8.5 Mbps
2 hrs 12 min
PON OC-12/32
Gigabit Ethernet
53.6 min
1000 Mbps
1 min
* from New York, NY 10005 – delivered to Beverly Hills, CA 90210
07/26/04
Page - 3
** extrapolated from record: 7 days 17 hrs - approx 2000 miles from St. Joseph, Missouri to Sacramento, California
Lincoln's Inaugural Address, March 4, 1861
Where are We Connecting?
New World (Wide Packets) Order
Long Haul
Intercontinental & Coast to Coast
Over Fiber at 10 Gbps & up
(Long Haul DWDM, SONET, ATM &
Ethernet)
Long
Haul:
Metro/
Access:
LAN:
07/26/04
Page - 4
Metro Network: Intra City or Metro Network
All over Fiber at 1Gbps  10 Gbps
(Short Haul DWDM, SONET, Gigabit Ethernet)
Long Haul
Metro/Access
Access Network: Network connections to customer,
Last Mile
(Access Network: Fast & Gigabit Ethernet , T-1, DSL and
Cable modems)
Desktop to Desktop – Floor to Floor
10 Mbps  1Gbps
(Ethernet & ATM)
Copyright © World Wide Packets 2002
their respective owners
All trademarks and registered trademarks are the property of
Technology Futures, Inc. (2001)
07/26/04
Page - 5

The typical household of 2015 subscribes to
broadband service at 24 Mb/s to100 Mb/s,

Small businesses will access the network at data
rates up to 622 Mb/s.

Medium and large businesses will access the
network directly with fiber at data rates from 2.4
Gb/s to 40 Gb/s.

By 2015, most customers obtain voice and
narrowband data service via wireless or VoIP on
broadband channels.

In 2015, fiber dominates the outside plant,
comprising 100% of the interoffice network, 97%
of the feeder network, and 95% of the distribution
network.
Massachusetts
Telecommunications
Symposium
"The communities that are
becoming more
successful have
broadband”
John Irwin, Legislative Oregon
Telecom Coordinating Council
John L. Toccalino
Black & Veatch
“Fiber Sweet Fiber”

Optically-enabled communities, now number 128, mid-May Fiber-to-theHome (FTTH) Council and the Telecommunications Industry Association.

Thirty-six communities representing a cross-section of America were added
to the list since September 2003.

More than half of these deployments are confined to neighborhood
developments, but a significant percentage (30 percent) extend
throughout a municipality and a few (3 percent) throughout entire
counties.

The new analysis also shows an increase in FTTH subscribers, with
average subscriber rates exceeding 40 percent overall and more than
75 percent in some communities. Since launching its FTTH network in St.
Marys, Ohio, for example, CLEC TSC has experienced a 75 percent
subscription rate. TSC overbuilt the pre-existing copper network to provide
high-speed Internet, telephone and cable television service to this city of
approximately 9,000 people.

“This technology offers the most advanced communications in the world,”
says St. Marys Mayor Greg Freewalt in a press statement. “We are
confident it will help attract new businesses to our community.”
06/01/2004
07/26/04
Page - 7
Morristown Utility Service - Fiber-Optic
Services to All 16,000 Subscribers in
Hamblen County.

Morristown Mayor Gary R. Johnson says if MUS captures all
16,000 customers, Hamblen County customers will save
a total of $2 million each year.
"We will be putting $2 million back into the community,"
Johnson said this morning. "This will be a fabulous
opportunity for us. This is a wonderful occasion for
Morristown and Hamblen County.

Hamblen County Mayor, David Purkey:
"When you have a lack of competition in any sector, the
sole provider tends to get a little lax, and that's what I
think happened,"
07/26/04
Page - 8
Spanish Fork, UT – Set Apart
07/26/04
Page - 9

With a service area of 6,700 homes,
Spanish Fork is currently at 50% cable and
30% Internet penetration rates. But that
number is rising despite some tough
competition from the incumbent service
provider, Comcast, Bowcut said.

In addition to its customer service policy,
Bowcut said Spanish Fork set itself apart
from the incumbent by also providing
something only a local company could
provide - a community channel.
It is the Future – NKC, MO
North Kansas City council members
approved the merits of the study, an early
step in a project that eventually would allow
the city to provide an infrastructure and
possibly outsource for television, high-speed
Internet and cable services.
"It is the future and it's a bold step," said
Gene Bruns, mayor pro-tem. "I think that we
need to take advantage of this opportunity."
April 21, 2004
07/26/04
Page - 10
Cities of Powell and Ten Sleep to Get
Fiber-Optic Broadband
07/26/04
Page - 11

Both communities are in the process of getting 100
percent fiber broadband telecommunications
systems direct to homes and businesses through
TRI TEL/TCT West - a Basin-based company that is
making a practice of keeping locals ahead of the
times.

“Major milestone, …. improve health care,
education and the overall quality of life for the
community. With almost 30 percent of the local
economy powered by education, health and social
services (retail and agriculture taking second and
third places), broadband will make a difference in
the way Powell does business-quickly.”
July 13, 2004
Provo Moves Ahead with iProvo
Project

The Provo City Council approved going forward with
a process that will culminate in the issuance of up to
$39.5 million in bonds to provide a city-wide
municipal broadband network.
December 03, 2003

Provo, Utah, Mayor Lewis Billings signed a contract
with Video Internet Broadcasting to provide residents
with voice, video and data services over the fiber
network, called iProvo. The power company is among
the nation's first municipal networks to wholesale
access to its fiber communications network.
July 16,2004
07/26/04
Page - 12
“Think Web Access is No Picnic? Think
Again”

GLENWOOD SPRINGS - In less than a
week, a walk in the park could turn into a
cruise down the information superhighway.
All you need is a wireless computer.
Free wireless Internet access will be
available at three of the city's parks Sayre, Veltus and Centennial - and soon
after that Two Rivers Park will go live.
July 19, 2004
07/26/04
Page - 13
Countywide Wireless – Dickenson, VA
07/26/04
Page - 14

Dickenson County VA is the first county in
the state to use countywide wireless
broadband services and the first to use WiFi technology for this purpose.

"DCWIN will enhance the health, safety
and education for the residents of
Southwest Virginia," said Mark Cvetnich, E911 manager and director of operations for
DCWIN.
Orlando, FL – Haven for Wireless
Email
07/26/04
Page - 15

Lake Eola Park is a haven for joggers, dog
walkers and now, email addicts.

For the six-month trial run, Orlando
taxpayers are forking over $1,800 a month,
at a time when the city has recently laid off
employees.

But Mayor Buddy Dyer insists it's not only
worth it, it's also imperative in the neverending quest to develop downtown, and
attract the so-called "young urban
professional."
Free Wireless Everywhere – San
Francisco, CA
07/26/04
Page - 16

It sounds like every broadband Internet
service provider's fantasy, but it's maybe not
as far-fetched as it seems. Over the last
year or so, small, gray plastic boxes have
begun appearing atop homes and
businesses around San Francisco. Roof
by roof, they're bringing Kahle's vision of
ubiquitous wireless-network access
closer to reality -- no telephone companies
or cable providers required.

Roughly 1,000 users have already logged
on to the network anonymously.
January 23, 2004
HBC Tests ‘Plug-In' Cable TV
07/26/04
Page - 17

In the very near future, every electrical outlet
in the house could provide high speed
Internet access, if a new technology being
tested by Winona's Hiawatha Broadband
Communications proves viable.

HBC and Rochester Public Utilities
announced they will work together to test
offering broadband communications over
existing power lines in Rochester homes.
Winona Daily News
IdaCorp - Broadband
Connectivity Over Powerline

One utility company that is getting serious
about delivering broadband connectivity
over powerline is Idacorp, which has
begun several trials of the technology
through its Idacomm subsidiary.

"The technology is coming of age now, as
opposed to even six months ago," said
Idacomm spokesman Cameron Christian.
"The costs are falling and the technology is
improving.“
January 19, 2004
07/26/04
Page - 18
Massachusetts
Telecommunications
Symposium
Why the Engagement?
Price Hikes
07/26/04
Page - 20

Comcast Corp., which late last month said it
would raise the price of its standard cable
service an average of 6.5 percent in New
England, will also increase the price of
several of its digital cable television
packages next year -- in one case by 9.1
percent.

Metro Detroit cable bills balloon, Comcast
fees up 14.6% in some areas; WOW! rates
rise too
Better Broadband Access Would
Create 81,500 Texas Jobs

07/26/04
Page - 21
The widespread rollout of broadband
Internet technology would create 81,500
jobs in Texas and boost the state's
economy by $36 billion, according to a
recent study.
Yankee Group Study Says
Broadband Plays Crucial Role

07/26/04
Page - 22
Broadband proves valuable in areas such as
homeland security, distance learning and
telehealth. However, the Yankee Group
report, "Municipalities, Schools and
Hospitals Reap Broadband's Benefits,"
finds many areas still have poor access
to information infrastructure and
broadband services.
Consumers Pay Lower Rates and
Enjoy a Higher Quality of Service
07/26/04
Page - 23

The evidence is clear that when there is
competition among cable providers,
consumers pay lower rates and enjoy a
higher quality of service.

Ameritech also reports that its competition
with cable companies led Time Warner to
cut its rates for the most popular channels it
offers–CNN, ESPN, and MTV–by 5% in
Wayne, Michigan. Ameritech also added
nine channels. In Berkley, Michigan, prices
dropped by 29% when TCI (now owned by
AT&T) saw it would be facing competition.
Mackinac Center for Public Policy
Channel Choice - A La Carte Line Up

Time may have come for ordering
channels a la carte - Congress,
consumers push for paying only for
what you want
USA TODAY
07/26/04
Page - 24
Other Nations Zip by USA in High-Speed
Net Race

Despite its economic and political might, the
USA is falling behind other nations in arming
consumers and small businesses with a key
economic tool: high-speed Internet access,
also known as broadband. The USA ranks
11th worldwide in broadband use,
according to a recent United Nations report,
behind such places as South Korea, Hong
Kong and Iceland.
USA TODAY 1/18/2004
07/26/04
Page - 25
Kuala Lumpur
07/26/04
Page - 26

Government to push for better broadband
penetration 07 July, 2004 Kuala Lumpur: The
Government will push forward for a better
broadband penetration rate in order to create the
critical mass, which will later encourage the private
sector to enhance their investment here.

Minister of Energy, Water and Communications
Datuk Seri Dr Lim Keng Yaik

“We cannot depend solely on the private sector
to provide this broadband access because it is
going to be too slow,” he told reporters after
officiating the Information Technology Governance
2004 conference here, Tuesday.
Japan Aims To Become World's
Broadband Hub
07/26/04
Page - 27

Japan is discussing with the United Nations on its
ambitious plan to build a region-wide broadband
network across Asia by 2010

“Japan's information infrastructure initiative will likely
have a far-reaching economic effect through the
region ….Japan is leading ahead in broadband
competition, injecting staggering amounts of
funds into building such infrastructure as FTTH
and IPv6," said the Ministry of Information and
Communication. "We have crafted countermoves,
which include setting up of a broadband
communications network, extending the Trans
Euro-Asia Network to Malaysia and reinforcing
Korea-China-Japan cooperation in IPv6
standardization."
South Korea Government
Investment
07/26/04
Page - 28

South Korea's $50 billion program first linked 80
major cities and towns with superfast cable.
Then, the government launched high-speed video
services, such as telemedicine.

Private enterprise followed. Business at Edumoa,
started in 1994, soared two years ago after 1,200
elementary schools got broadband. The Seoul elearning firm supplies schools with electronic
textbooks, animated science education and online
testing.
Massachusetts
Telecommunications
Symposium
Process - Drivers, Plans
and Strategies
Network Drivers
Planning Process
Strategies
Pros and Cons
What Drives the Network?
07/26/04
Page - 30

Economic Development

Value Add to Residents

Pent-Up Demand
Economic Development
07/26/04
Page - 31

Cedar Falls / Waterloo, IA

Osborne, KS

Erie, PA

Martinsville, VA
Osborne, KS
Mayor George Eakin believes the highspeed network already has helped retain
jobs in the community. "For Osborne
Industries and for a local chemical
wholesaler and seed packaging plant, the
high-speed network has meant that sales
and engineering could stay here, rather
than being farmed out elsewhere," says
Eakin.
07/26/04
Page - 32
Erie, PA
07/26/04
Page - 33

125 Erie, Pa.-Area Firms Sign Up for
Business Broadband Service

"The response has been terrific," said Ike
Mutlu, general manager of the Armstrong
service in Meadville. "It (high-speed
Internet) is selling itself.“
Martinsville, VA
07/26/04
Page - 34

Governor Mark R. Warner today announced
that MZM, Inc. has selected the City of
Martinsville's Clearview Shell Building for a
database and information technology
operation.

"The city's multi-year investment in the
Clearview Business Park, the shell building
and our broadband MINET fiber optic
network has paid off," said Martinsville
Mayor M. Gene Teague.
Benefits to Residents
07/26/04
Page - 35

Ameritech also reports that its competition with
cable companies led Time Warner to cut its
rates for the most popular channels it offers–CNN,
ESPN, and MTV–by 5% in Wayne, Michigan.
Ameritech also added nine channels. In Berkley,
Michigan, prices dropped by 29% when TCI (now
owned by AT&T) saw it would be facing
competition.

Lack of real competition is costing the public at
least $4.5 billion a year, according to a
consumer group analysis of the cable industry
or $80 per household per year.
Pent-Up Demand

A resident of the southeast end of town, Mr.
Macdonald vented his exasperation with the archaic
state of Westport's cable and phone
communications systems in a full-page
advertisement in Shorelines on Sept. 11.
"Lagos, Nigeria has better communications than
we do.“

07/26/04
Page - 36
To provide broadband (high speed Internet) to all
Oregonians, reducing the gap between "the
have's and the have not's," with the intent of
building a better economy and future is one goal
of a measure "Oregon Broadband Policy."
The Planning Process
Goal
Conception
Fact Find
Community
Solution
Financial
Feasibility
07/26/04
Page - 37
Conceptual
Design
Detailing the Process
Fact Finding


Demand Analysis

Current Providers

Public/Private Partners
Existing Assets
Situation Based Conceptual Design

Conceptual System Design and Cost

Potential Phases
Financial Assessment
07/26/04
Page - 38

Economic Analysis

Funding
Demand Analysis – Bandwidth Requirements
07/26/04
Page - 39
Demand Analysis - Primary
and Secondary Research
Primary Research
Secondary Research
Analysis
TABLE A3-5
DISCOUNT IMTS INDEX PRICES FOR LONG-DISTANCE CALLS -BASE CASE (PRICE PER MINUTE ($))
Country Pairs
U.S. to Canada
AT&T
MCI
Sprint
U.S. to Mexico
AT&T
MCI
Sprint
U.S. to United Kingdom
AT&T
MCI
Sprint
U.S. to Germany
AT&T
MCI
Sprint
U.S. to France
AT&T
MCI
Sprint
U.S. to Italy
AT&T
MCI
Sprint
U.S. to Japan
AT&T
MCI
Sprint
U.S. to Dominican Republic
AT&T
MCI
Sprint
1991
--0.394
1992
1993
1994
--0.394
-0.388
0.416
0.410
0.400
0.425
--1.177
--1.177
--1.184
1.204
1.166
1.212
----
--0.758
-0.748
0.846
0.758
0.748
0.846
--0.809
--0.809
-0.811
0.809
--0.799
--0.820
-0.805
0.825
0.815
0.805
0.825
-0.868
0.878
0.974
0.964
0.950
--0.823
--1.038
-1.022
1.038
1.085
1.022
1.070
----
----
-0.938
--
1.020
1.010
--
Notes: For Canada, M exico, and the Dominican Republic, the calling
pattern distribution is 40%standard, 30%discount, and 30%economy.
For the United Kingdom, Germany, France, Italy, and Japan, the calling
pattern distribution is 30%standard, 50%discount, and 20%economy.
Phone or Mail Surveys
Case Studies of Other
Focus Groups
Community Network
Providers
One-on-One
Interviews
Gather Demographic
Data
0.947
0.811
0.809
--0.802
--1.038
IWATS INDEX PRICES FOR LONG-DISTANCE CALLS -BASE CASE (PRICE PER MINUTE ($))
Country Pairs
U.S. to Canada
AT&T
MCI
Sprint
U.S. to Mexico
AT&T
MCI
Sprint
U.S. to United Kingdom
AT&T
MCI
Sprint
U.S. to Germany
AT&T
MCI
Sprint
U.S. to France
AT&T
MCI
Sprint
U.S. to Italy
AT&T
MCI
Sprint
U.S. to Japan
AT&T
MCI
Sprint
U.S. to Dominican Republic
AT&T
MCI
Sprint
1991
1992
1993
1994
0.520
0.494
0.489
0.520
0.500
0.489
0.541
0.546
0.511
0.549
0.590
0.533
1.387
1.373
1.389
1.387
1.373
1.389
1.423
1.384
1.408
1.490
1.449
1.424
0.877
0.833
--
0.877
0.841
0.842
0.912
0.939
0.908
0.953
1.015
0.908
1.023
0.971
--
1.023
0.980
0.989
1.062
1.094
1.068
1.147
1.182
1.110
0.996
0.947
--
0.996
0.956
0.963
1.035
1.066
0.920
1.118
1.152
0.955
1.003
0.953
--
1.003
0.962
0.961
1.041
1.074
1.043
1.126
1.160
1.084
1.410
1.339
--
1.410
1.353
1.340
1.464
1.509
1.452
1.582
1.631
1.507
1.029
0.998
--
1.029
0.998
1.004
1.069
1.101
1.065
1.155
1.190
1.107
Notes: For Canada, M exico, and the Dominican Republic, the calling
pattern distribution is 85%standard, 10%discount, and 5%economy.
For the United Kingdom, Germany, France, Italy, the calling pattern
distribution is 60%standard, 20%discount, and 20%economy. For
Japan the calling pattern distribution is 75%standard and 25%discount.
Market
Demographics
Analysis
Business Plan
Variables
Research Focus
Residents
Businesses
07/26/04
Page - 40
School Administrators
Health Care Providers
First Responders
Existing Providers
Existing Assets

Other Communities

Associations

Fiber Transport

07/26/04
Page - 41
POPs, Regen Sites

Utility Assets

ROW

Ordinances, Franchise Agreements
Applicable Technologies
Typical
Speed
Pros
Cons
07/26/04
Page - 42
Broadband
over
Powerline
DSL
Fixed
Wireless
Free
Space
Optics
HFC
Satellite
500Kbps –
3.0 Mbps
500 Kbps – 4.0
Mbps
Symmetric
FTTX
Wireless
LAN
(802.11)
ISDN
100 Kbps - 8
Mbps
500 Kbps - 8
Mbps
15 Mbps 155 Mbps
15 Mbps 100 Mbps
1.5 - 100
Mbps
100 Kbps 54 Mbps
60 Kbps 200 Kbps
Asymmetric
Asymmetric
Asymmetric
Symmetric
Symmetri
c
Symmetric
Symmetric
Symmetric
Ease of
Installation
Quickly
Upgradeable
Rural
Accessible
Existing
Infrastructure
(Copper
Loop)
Licensed
Coordinated
Frequencies
NonLicensed
"Future
Proof"
Easy
Deployment
Existing
Infrastructu
re (some
COs)
Existing
Infrastruct.
Typically
Existing
Infrastructure
Limited
Field Trials
Shared
Bandwidth
Emerging
NonLicensed
Limited
Bandwidth
Interferenc
e from
nearby HF
Xtransmit
Often Upgrade
Required
Dedicated
Link
Often UniDirectional
Distance
Sensitivity
Poor Plant or
Device
Removal
(Load Coils)
Excellent
Short
Range
Media
Weather
Sensitivity at
Higher
Frequencies
Weather
Sensitive
Security,
Short
Range
Economic Analysis
..\..\..\Desktop\Financial Model Sample.xls
07/26/04
Page - 43
Funding
07/26/04
Page - 44

Economic Development Grants

RUS Broadband Funds

E-Rate

Bonds

Venture Capital
Strategies

07/26/04
Page - 45
Public/Private Partnership

Joint Ownership

Anchor Tenant

Wholesale Network

Retail Provider
Public/Private Network
07/26/04
Page - 46

Institutional Users Cooperating to Own
Strand, Private Providers Serving
Businesses/Residences

Dark Fiber Provided by Public Sector,
Private Service Provider for Managed
Services

Public Sector Consolidating Usage
Publicly Owned Network

07/26/04
Page - 47
Wholesale vs. Retail

Best Fit – Infrastructure or Providing
Competitive Services

Municipal Services Monopolistic in Nature
(police, garbage collection, water)
Retail vs. Wholesale Value Chain
07/26/04
Page - 48
A Few Pros and Cons
Retail
Pros Increased Revenue
Wholesale
Local ISP Provider Benefit
Greater Control
Improve Competition
Brand Name Security
Reduced Operations Cost
Profit Flexibility
Less Staff
Reduced Customer Cost
Cons Incumbent Resistance High
Incumbent Resistance High
Increased Staff
Reputation Risk
Greater Performance Risk
Reduced Revenue
07/26/04
Page - 49
Loss of Control
Summary
07/26/04
Page - 50

Lots of Activity

Reasons Why


Economic Development

Poor Service

Increased Prices

Lack of Choice
Process