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CAF II Case Study

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from Bill Coleman

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CAF II Case Study

  1. 1. CAF II Case Study Two Exchanges in East Central Minnesota What is the impact?
  2. 2. Findings • Both CenturyLink and Frontier are using CAF II dollars to deploy Fiber to the Node technology in support of distance-sensitive DSL services • Even after CAF II investment, the vast majority of the property within these two exchanges lies more than 3,000 feet from a fiber- fed DSL node, thus limiting the bandwidth available to customers to something less than the 2022 state broadband goal of 25 Mb/3 Mb. • It is unlikely that any customers in the rural portions of these exchanges will be able to receive broadband services that meet the 2026 Minnesota broadband goal of 100 Mb/20 Mb without additional provider investment.
  3. 3. BroadbandinEast CentralMN
  4. 4. CAF II Funding In MN & Requirements • Speed: Service providers must offer broadband at speeds of at least 10 megabits per second (Mbps) downstream and 1 Mbps upstream. • Latency (the time it takes for a data packet to travel back and forth over a broadband network): Service providers' network latency cannot be higher than 100 milliseconds round trip. • Usage Allowance: Currently, the carrier must offer at least one plan with a minimum usage allowance of at least 150 gigabytes (GB) per month, or in certain circumstances, a plan with 100 GB of usage. • Pricing: Service providers must offer service at rates reasonably comparable to rates in urban areas. • NOTE: CAF II Funding equals amount distributed to date via B2B Grant Fund Company Households Funds CenturyLink 114,739 $54,035,149 Consolidated Communications 4,266 $2,516,502 Frontier Communications 46,910 $27,551,367 Windstream Communications 4,440 $1,519,856 Total 170,355 $85,622,874
  5. 5. DSL Speed over Distance • DSL speeds decline rapidly over a relatively short distance • Up to 80 Mb at the fiber-fed cabinet • Approximately 25 Mb/3 Mb at 1 km or 3,280 feet • Approximately 10 Mb/1 Mb at 3 km or 10,000 feet • Vectoring to increase capacity effective within 3,000 feet • G.Fast, an emerging technology, is forecast for urban areas to connect fiber to MDU • Pair bonding can also be used to double speeds if copper pairs are available • Carrying capacity of copper pairs is highly dependent on line quality
  6. 6. Frontier DSL Speed – Distance Chart Questions: Are extra copper pairs available? What is the quality of the copper lines?
  7. 7. Study Areas Lindstrom via Frontier Braham via Century Link
  8. 8. FRONTIER’S LINDSTROM EXCHANGE Red circles = 3,000 foot radius = 25 Mb/3 Mb and higher Blue circles = 9,000 foot radius = between 25 Mb/3 Mb to 10 Mb/1 Mb
  9. 9. FRONTIER’S LINDSTROM EXCHANGE Those within the circles, about 10% of land area, may meet the 2022 state goal of 25 Mb/3Mb; no one would meet the 100 Mb/20 Mb2026 state goal.
  10. 10. CENTURYLINK’S BRAHAM EXCHANGE Red circles = 3,000 foot radius = 25 Mb/3 Mb and higher Blue circles = 9,000 foot radius = between 25 Mb/3 Mb to 10 Mb/1 Mb
  11. 11. CENTURYLINK’S BRAHAM EXCHANGE 3,000 foot radius circles occupy less than 10 percent of the land area
  12. 12. Findings • Both CenturyLink and Frontier are using CAF II dollars to deploy Fiber to the Node technology in support of distance-sensitive DSL services • Even after CAF II investment, the vast majority of the property within these two exchanges lies more than 3,000 feet from a fiber- fed DSL node, thus limiting the bandwidth available to customers to something less than the 2022 state broadband goal of 25 Mb/3 Mb. • It is unlikely that any customers in the rural portions of these exchanges will be able to receive broadband services that meet the 2026 Minnesota broadband goal of 100 Mb/20 Mb without additional provider investment.

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