Provides and overview and value of municipal open-access broadband networks. (c) Inphotonics Research

1. Opportunity & Choice for Broadband Networks Open Access Broadband Infrastructure for 21st Century Vitality

2. WHY? Why should we care about municipal open-access broadband networks? 2 3/10/2011

3. OECD Broadband Subscriptions Per Capita 3 3/10/2011

4. Broadband Quality Score 4 3/10/2011

5. It’s About Being Local Broadband services create economic vitality 5 3/10/2011

6. Broadband Services Create Economic Vitality 6 3/10/2011

7. Additional Local Benefits Education Health Care Energy Conservation Public Safety Government Services 7 3/10/2011

8. What Does It Mean to Me? Price Choice Competition 8 3/10/2011

9. Broadband Availability in U.S. Percentage of households that meet goals of National Broadband Plan Over 14 million people do not have access to at least one provider that meets National Broadband Plan Number of households that are considered underserved 9 Credit: FCC @ broadband.gov 3/10/2011

11. Topics Why Municipal Broadband? What Is Municipal Broadband? Who Is It For? How Is It Delivered? Why Isn’t It Taking Off? 11 3/10/2011

12. What Is Municipal Open-Access Broadband? Municipal=Last Mile Network Open-Access=Equal Access for Any Service Provider Broadband100 Mbit/s 12 3/10/2011

13. Network Anatomy Layer Coverage L7 … L4 Advanced Correlation & Analysis L3 Voice & Video Ops or MSC/BSC L2 L1 Transport Network Metro / Access Metro / Access CO Partner Carrier 13 3/10/2011

14. Let The Carriers Build It! Last-mile networks are the most expensive portion of the network to deploy Single purpose last-mile networks are not as economical as multi-tenant networks Incumbent service providers are not driving broadband penetration in underserved and un-served markets Lack of competition Lack of choice Growth stagnates Service providers understand the concept of divorcing the network from the service Network  Service Profitability is not achieved in time-frame suitable for public companies There is not a one size fits all approach National Broadband Plan is guideline only Building infrastructure is a local issue 14 3/10/2011

15. Cost of Last Mile Access $850 per home passed $2,125 cost-to-pass per subscriber $3,225 total investment per subscriber 15 3/10/2011

16. Network vs. Services ManagementLevel Business & Operation Support Systems Billing Provisioning Maintenance Operations Services Voice (VoIP) Data (Internet, LAN, MAN, & LAN) Video (IP-TV, RFoG) Mobility Service/Application Level Infrastructure & Transport Fiber & Ducts Optical (WDM, PON, Optical Ethernet) Wireless (LTE, GSM, CDMA, Pt-Pt Microwave) Redundant Paths for High Availability Transport Level 16 3/10/2011

17. Who Is The Network For? Stakeholders Government Education Health Care Business Community Service Providers Business Providers Residential Providers Mobility Providers Incumbent Providers 17 3/10/2011

18. Business Service Providers AT&T Business Cogent Communications Covad Communications Cox Communications Front Range Internet (FRII) Global Crossing Integra Telecom IP5280 Level 3 Communications PAETEC Qwest Business Reliance Globalcomm TDS Telecom tw Telecom Verizon Business Virtela XO Communications Zayo Enterprise Services 18 3/10/2011

19. Residential Service Providers These are non-incumbent service providers that offer a combination of voice, video, data, and wireless services in other communities. AT&T AT&T Wireless Front Range Internet (FRII) Fuzecore IDT Liberty Media Mstar Prime Time Communications Sage Telecom Sprint TDS Telecom T-Mobile Verizon Wireless Virtela Vonage 19 3/10/2011

20. Personal Applications Voice communications/telephony Teleconferencing Video Calling Instant Messaging/Status Geolocation Social Networking Gaming Blogging Personal Web Sites Shopping Reading Music: Listening & Purchasing Music Composition & Recording Mobility in Applications Broadcast Video Time-Shifted Video Video on Demand/Movies Live Events Photo & Video Sharing E-Mail Podcasting/Video Casting Banking, Investing & Personal Finances Hobbies Travel Planning Healthcare Energy Management Security Education 20 3/10/2011

21. High Bandwidth Personal Applications Massively multiplayer online role-playing game (MMORPG) High Definition Video on Demand Energy Management Security 21 3/10/2011

22. Business Applications Voice Communications/telephony Voice Conferencing Video Conferencing/Telepresence Webinars E-Mail IM/Status Financial Transactions Business-to-Business Transactions Marketing Social Media Investor Relations Surveys Data Storage & Retention Government Compliance Customer Relationship Management Manufacturing Resource Planning 2D & 3D Modeling/Supercomputing Security Telemedicine Product Development/Design Multi-location Communications Design Transfer to Manufacturing B2B & B2C Sales Customer Support/Call Center Literature Distribution Claims Adjustment 2D & 3D Modeling Animation Video Distribution Travel Planning Expense Reporting Public Relations 22 3/10/2011

23. High Bandwidth Business Applications Video Conferencing/Telepresence Climate & Geo-modeling Telemedicine Video Production & Animation Design Transfer to Manufacturing Equities & Commodities Trading 23 3/10/2011

24. Fit the Network to the Community’s Needs Fiber, Wavelength, Bandwidth, or all Wireline vs. Wireless Partitioning PON or Active Ethernet 24 3/10/2011

26. Eliminate QoS complexity in the access

27. Offer a standard interface

28. Reduce complexity

29. Reduce cost

30. Easier service adaptation

31. Allow multiple vendorsCopper Fiber Wireless “Plug and Play” Ethernet Network

35. Ethernet-based transportMax 32 way split (16-way specified in standard) LU #1 EPON TXR Fiber E-PON LU #N, N ≤32 LU #N, N ≤32 Splitter 1000BASE-PX20 per IEEE 802.3ah Network optical transceiver (TXR) shared by “N” subscribers *OLT implementations may not necessarily support all PON technologies indicated

36. Example of WDM-PON 3/10/2011 27 Hybrid WDM-PON example Wavelength Splitter ONT (Fixed Optics) TDMA Power Splitter Access Node ONT Bitrate 1 Dedicated l1 pair SNI Feeder Fiber OLT Fixed* or adaptable optics 1 to N ls on Single Fiber ONT Bitrate 2 Dedicated l2 pair ONT (Fixed Optics) TDMA Wavelength selection here Power Splitter * “Fixed” optics might be a cost reduced version of convention DWDM long-haul optics NOTE: Most believe adaptable optics will be required for a practical WDM-PON system ColorlessONTs: Transmitter and receiver front-end filter characteristics are wavelength adaptable

37. Intelligent Network Build-Out Sophisticated planning tool to model network expansion based on existing facilities, anchor tenants, and interested customers Model new facilities in minutes with fiber and wireless transport Quote tail circuits in hours instead of days 28 3/10/2011

39. A single community does not offer economies of scale to attract business and residential service providersMunicipality Network Operator Finances the project Owns title to infrastructure Access to right-of-ways Sets codes and ordinances based on best practices Sets pricing for non-discriminatory access to infrastructure Interconnection at point-of-presence (POP) for service providers All franchise agreements still valid Local entity contracts to Network Operator to intelligently build-out and manage last-mile infrastructure Planning and construction Best practices Pricing & billing for city Order management Service activation Monitoring & maintenance Operator acts as agent for entity to lease/sell last-mile access to residential and business service providers 29 3/10/2011

40. Impediments Financial Legal Incumbents Taxpayers 30 3/10/2011

41. Competition Incumbent service providers: telephone and cable companies (PMO) Wireless service providers: Verizon Wireless, AT&T Wireless, Sprint, T-Mobile USA Satellite service providers: DISH/EchoStar, DirectTV, HughesNet, WildBlue 3/10/2011 31

42. The Future of Open-Access Muni Networks Choice Economical Societal Benefits Economic Vitality 3/10/2011 32 A proven business model that will increase broadband penetration in un-served and underserved areas.

43. 3/10/2011 33