A presentation for the Future of Networking session at the 2014 Cyber Summit by Lance Douglas, Chairman & CEO of the Lightcore Group, Inc.

1. @Cybera #CyberSummit14
CROWDSOURCING INNOVATION | Banff, Alberta
“Open & Shifting: The Future of
Networking and Municipal
Connections”
Lance G. Douglas | Chairman & CEO – Lightcore Group, Inc.

2. Meet Lance
2
CHIEF CUSTOMER CHAMPION / FOUNDER:
Lightcore Group, Inc.
DRIVING PASSION:
making the world awesome for everyone.
SINGULARITY OF CAREER FOCUS:
creating mutual “Repeatable
Successes”.
Born and raised in Calgary; aged
in Quebec for short spell; father of
two; husband of the most patient
wife in the world; half Dutch by
marriage.

3. Meet Lightcore Group
3

4. Our Journey Together, Today…
FTTH Municipal IaaS
01 | Perspective on Technology’s Role in Business
02 | User Experience is the Driving Force of Business
03 | Municipal Anti-Business Model
04 | What Exactly is the Municipality’s Product?
05 | The Last-Mile = First-Mile of Opportunity
06 | Municipal IaaS Traction
4

5. 00 | What is FTTH?
5
The Layer-1 infrastructure
that connects a dwelling to
a cor e aggregat ion /
gateway point with fiber
optic cabling.
Or simply put: the currency
plane for participation in the
digital economy.

6. “Business is a for-profit expression of experience.”
01 | Perspective on Technology’s Role in Business
.

7. “Technology is a set of tools, sometimes used by
business to improve, or even define, an
experience.”
01 | Perspective on Technology’s Role in Business

8. “User Experience is the Driving Force of Business,
Technology, and Lifestyles.”
02 | Perspective on Technology’s Role in Business

9. 02 | Perspective on Technology’s Role in Business
Business
Technology
Better
User
Experience
“The convergence
of the two
==
better
experience.”
.

10. Launching a Canadian FTTH Service
03 | Municipal Anti-Business Model
Provider
Personal go-to-market approach was to micro-size
concepts and deployment strategies of giant
telcos.
.

11. Launching a Canadian FTTH Service
03 | Municipal Anti-Business Model
Provider
Personal go-to-market approach was to micro-size
concepts and deployment strategies of giant
telcos.
FAIL

12. 03 | Municipal Anti-Business Model
Saving Grace #1
“A complex system that works is invariably found
to have evolved from a simple system that
worked.”
- John Gall

13. Marketing a Canadian FTTH Service Provider
Initial market evaluation and segmentation joy
was based on community love.
03 | Municipal Anti-Business Model

14. Marketing a Canadian FTTH Service Provider
Initial market evaluation and segmentation joy
was based on community love.
03 | Municipal Anti-Business Model
EPIC FAIL

15. 03 | Municipal Anti-Business Model
What happened?
We were expecting a
30% take-rate, based
primarily on Community
Love. The reality was
that only 25% was of
t h a t mindset, but
correctly only 30% of
those would make the
purchase.
Community Love Reality
Apathy (75%)
Community: Yes, but No
Thanks (17.5%)
Community: Yes, And Yes
(7.5%)

16. Customer
Citizen
03 | Municipal Anti-Business Model
The Perception
Paradox:
Most people don’t
volunteer to pay
the gov’t for
anything, and
locals see
O-NET as a gov’t
program.
Municipal
Government
Network Owner
(non-profit)
Network
Operator
(non-profit + RSP)
Retail Service
Provider
(for-profit competitor)

17. 03 | Municipal Anti-Business Model
Learned Axioms
1. “Municipalities are NOT businesses.”
2. “Citizens are not customers.”

18. 03 | Municipal Anti-Business Model
Saving Grace #2
“Focus on the user and all else will follow.”
- Google
.

19. How, and why, does a municipality approach
FTTH?
04 | What Exactly is the Municipality’s Product?
.

20. How, and why, does a municipality approach FTTH?
Citizens expect, or demand,
opportunity.
04 | What Exactly is the Municipality’s Product?
.

21. What is Municipal IaaS
21
IaaS
Infrastructure-as-a-Service
“IaaS is the virtual delivery of
computing resources in the form of
hardware, networking, and storage
services.” – Dummies.com
“Municipal IaaS is the unified delivery
of basic community resources in the
form of roads, right or ways, and
governance.” – Lightcore Group
05 | The Last-Mile = First-Mile of Opportunity
.

22. Community = Opportunity
22
Typical Citizen Expectation of Municipal Involvement
CaaS
Community-as-a-Service
muni services
PaaS
05 | The Last-Mile = First-Mile of Opportunity
Platform-as-a-Service
muni systems
IaaS
Infrastructure-as-a-Service
muni facilities

23. Cloud Analogy
23
CaaS
Power Services
Gas Service
Global Travel
Retail Shops
Taxi’s
Data
Buses & Trains
Permitting
Management
Municipality Delivered
Private Sector
PaaS
Municipality Managed
Private Sector
e.g. Power Lines
e.g. Gas Lines
Airport
Malls
Traffic Signals
Sensors
Water Lines
Policies & Bylaws
Council
05 | The Last-Mile = First-Mile of Opportunity
e.g. Power
Private Sector
e.g. Gas
OpCo
IaaS
Municipality Owned
RoW’s
Roads
Sewers
Water
Landfills
Social Tools
Governance
RSP NetCo
Infrastructure &
Governance Core
Interpretations of
Governance and
Infrastructure in
Action.
Management,
services, and
delivery as
stability.

24. 05 | Last Mile == First Mile of Opportunity
24
Remove the
Barriers
• for all citizens and businesses, existing and potential
• for market competition to drive up quality and
reliability
Better by design
• build for the future while addressing today’s needs
• success is repeatable and transferrable among
muni’s.
No lock-in • abstraction entices innovation on all fronts:
• portability is important for growth and scale of value
Lifestyle
improvements
• unified open access paves the way for community
wide services, and new ideas.
Better spend
• muni’s need to upgrade their middle-mile infra-structure
already.
• the IaaS approach is risk mitigation
.

25. What can that new telecom look like when
infrastructure is a service?

26. The New Telecom “can”:
Answer the Domain 2.0
challenge

27. The New Telecom “can”: Deploy over M:M NetCo’s

28. The New Telecom
“can”:
Finally, Be Agile,
Nimble, and
Disruptive

29. “Open Access” requires market
competition.

30. “Equal Opportunity” requires equal access.

31. The “Digital Economy”
only favours
“Connected Communities.”

32. Being connected is beyond a critical service.

33. 06 | Municipal FTTH Traction
CANADA OPERATIONS
33
Feasibility & Design Projects:
>600K homes passed
Major Market Launches:
2 to 3 in 2015
Major FTTH Announcement
1 still to come in 2014
US OPERATIONS
I&R Jobs Growth:
100-200 Techs in 2015

34. KEY TAKEAWAY
Municipal Product == “Opportunity”
Municipal Citizen == “Life”
Successful Municipal FTTH ===
“Empowering Opportunity for Better Lives”

35. Thank you for the
opportunity to share!

36. Appendix A: Municipal Wireless Barrier: B.I.R.D.S.
36
Barriers | Interference | Reflections | Distance | Security
100% wireless technologies share a limited physical medium.
PLUS
Municipalities are density and economies of scale.
EQUALS
The inverse of both Metcalfe’s and Reed’s laws.