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1 © 2013 Calix Proprietary and Confidential Broadband is the New Necessity Better Broadband for Maquoketa

Better Broadband for Maquoketa Fiber... · 2017. 6. 27. · Calix Deployment Experience Communities served by Calix fiber in the U.S. NFL/NBA cities: 11 metros Orlando, Las Vegas,

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  • 1 © 2013 Calix – Proprietary and Confidential

    Broadband is the New Necessity

    Better Broadband for Maquoketa

  • 2 © 2013 Calix – Proprietary and Confidential

    Calix Strategic Focus: Access Network The rise of the consumer … and the cloud

    Access

    The Cloud

    Content Subscriber

  • 3 © 2013 Calix – Proprietary and Confidential

    Calix Deployment Experience

    Communities served by

    Calix fiber in the U.S.

    NFL/NBA cities: 11 metros Orlando, Las Vegas, Seattle, Portland,

    Denver, Phoenix, Cincinnati, Sacramento,

    Salt Lake City, Minneapolis/St. Paul, San

    Antonio

    10,000 population: 100+

  • 4 © 2013 Calix – Proprietary and Confidential

    Obama Visits Cedar Falls Demonstration of Calix equipment

    Some significant recent events

    Rural Broadband Experiments - $100M … fiber participants offered

    CAF II opportunity

    Call for Title II treatment for broadband … it will happen, but when?

    Definition of broadband increased to 10/1 …soon may be 25/3

    CAF programs embrace utilities, MSOs, Munis … not just for

    ILECs anymore

    $40M new dollars added into RUS loans … expanded for Munis

    E-Rate significantly expanded … $1.5B for fiber infrastructure

    A new ROR algorithm solidified … Price Cap next

    A shift from wireless to fiber … Obama get a Calix gig demo!

  • 5 © 2013 Calix – Proprietary and Confidential

    FTTH Map of the USA

    Source: http://www.broadbandmap.gov/

    http://www.broadbandmap.gov/

  • 6 © 2013 Calix – Proprietary and Confidential

    Broadband and Economic Development

  • 7 © 2013 Calix – Proprietary and Confidential

    What is the connection?

    Kitty Litter and Economic Development

  • 8 © 2013 Calix – Proprietary and Confidential

    Cassopolis, Michigan

    Edward Lowe Foundation

  • 9 © 2013 Calix – Proprietary and Confidential

    Edward Lowe Foundation

    Economic Gardening

  • 10 © 2013 Calix – Proprietary and Confidential

    Broadband is the New Necessity

    Broadband and Economic Development

    Question 1:

    Would you rather have 100

    five employee companies

    or a single 500 person

    company in your

    community?

    Question 2:

    Would the people running

    those five person

    companies be able to grow

    without adequate

    broadband?

    High speed broadband is now

    considered a fundamental element

    of a community’s ability to compete

    in the global economy

  • 11 © 2013 Calix – Proprietary and Confidential

    Why Fiber Broadband Networks?

  • 12 © 2013 Calix – Proprietary and Confidential

    The Internet of Things is Growing

    New generations of “connected” devices will change home

    networking and bandwidth consumption

    By 2020, the average U.S. home will

    have 50 internet connected devices

    Source: Gigaom, Parks Associates,

    The Wall Street Journal, stltoday.com

    95% of U.S. broadband

    homes are projected to

    have home networks by

    2016

  • 13 © 2013 Calix – Proprietary and Confidential

    Peak Bandwidth Growth over Time? Following somewhat behind Moore’s Law

    Nielson’s Law

    Internet peak consumption doubles every 2 years

  • 14 © 2013 Calix – Proprietary and Confidential

    Why Fiber? Bandwidth growth is exponential

    Fiber is the path to long-term sustainability

    Offers virtually unlimited bandwidth

    Allows network to be built “once”

    We have already experienced this rate of growth

    VDSL2 Fiber ADSL/2/2+

    1.5-3 Mbps

    8-24 Mbps

    50 Mbps

    100 Mbps

    500 Mbps

    Mu

    lti-P

    air

    Bo

    nd

    ing

    2-P

    air

    Bo

    nd

    ing

    Competitive

    Battleground (today)

    20 Mbps service today will

    require 150 Mbps in 5 years,

    1 Gbps in 10 years

  • 15 © 2013 Calix – Proprietary and Confidential

    Fiber as a Community Asset?

    Gives your community a competitive advantage

    Businesses need high speed fiber optics to be competitive

    Young people won’t settle where they can’t get high speed

    broadband

    Critical infrastructure for economic development

    Why is fiber the technology of choice?

    The only technology that has the bandwidth and flexibility to keep

    up with projected consumer demand

    Fiber has a high initial cost, but a low operating cost eliminating

    truck rolls and ongoing maintenance

    Provides a communication infrastructure for grid modernization

    Fiber future proofs the network; bandwidths can scale with

    consumer demand Fiber cable infrastructure has unlimited bandwidth potential

  • 16 © 2013 Calix – Proprietary and Confidential

    Fiber Value Proposition

    Enterprise

    World-class infrastructure to collaborate, innovate and compete

    Serving business of any size

    Community

    Economic development and vitality

    World-class healthcare, enriched education and public safety

    Improved public services and government efficiencies

    Consumers

    Freedom: no constraints, no boundaries, no limits

    Access to all the things you care about, anytime, anywhere.

    Highest quality communications: video, voice and data

    Value to community stakeholders

  • 17 © 2013 Calix – Proprietary and Confidential

    Appealing to Enterprise

    Infrastructure

    Fiber to the building available to all businesses

    Advanced networking capabilities, with redundant connections

    Services

    100Mbps,1000Mbps and 10Gbps symmetrical services

    Metro Ethernet Forum E-Line and E-LAN based service

    Service level agreements available to all businesses

    24/7 network monitoring and support

    Economic gardening

    A place entrepreneurs come to create businesses

    A blended mix of established enterprises and new technology firms

    leveraging Gigabit services

    An appealing place for retailers and hospitality serving technology

    savvy consumers and businesses

    Marketing a Gigabit

  • 18 © 2013 Calix – Proprietary and Confidential

    Appealing to Community

    Education

    Gigabit fiber serving every school building

    Children with access to the most advanced technology-in school,

    at home and throughout the community

    Healthcare

    Gigabit fiber to every hospital and clinic

    Rapid transfer of medical records, images and

    Access to world class medical facilities through Gigabit portals

    In-home medical monitoring and diagnostics

    Public safety and community services

    Gigabit fiber to all community buildings, Wi-Fi in all public spaces

    Street level and home monitoring via communications

    infrastructure

    Community portal for events, message boards, networking and

    building community cohesiveness

  • 19 © 2013 Calix – Proprietary and Confidential

    Appealing to Consumers

    Infrastructure

    Gigabit fiber available to every home

    Higher home resale values

    Services

    100Mbps and 1000Mbps symmetrical Internet services

    Advanced high definition video offering with DVR

    Home monitoring and security services

    Local, national and worldwide voice calling plans

    In-home and community networks

    Seamless operator supported Wi-Fi network throughout the home

    and public spaces throughout the community

    In-home IT support for computers, wireless devices and media

    centers

    New advanced services leveraging Gigabit fiber-wireless network

    Marketing a Gigabit

  • 20 © 2013 Calix – Proprietary and Confidential

    The Gigabit Phenomenon

  • 21 © 2013 Calix – Proprietary and Confidential

    Google Fiber Experience Provider A “clean-sheet” approach to communications

  • 22 © 2013 Calix – Proprietary and Confidential

    Creating Gigabit communities

    Gigabit Residential Announcements

    Cedar Falls, Iowa

    Bristol, VA

    Ten Cities

    Red Wing, Minnesota

    Rural Minnesota

    Rural Vermont

    100 Cities

    Multiple Cities

    Rural Missouri

    Burlington, Vermont

    Multiple Cities Chattanooga, Tennessee

    Lafayette, Louisiana Longmont, Colorado

  • 23 © 2013 Calix – Proprietary and Confidential

    Getting Maquoketa Better Broadband

  • 24 © 2013 Calix – Proprietary and Confidential

    Prerequisites for Better Broadband

    Maquoketa has many of the key ingredients

    Fiber links to Internet connection points

    Through multi-city fiber ring

    History of community ownership

    Locally owned and controlled electric infrastructure

    Anchor institutions or businesses with unmet BB needs

    Anchors and businesses are key to driving initial deployment

    Engage with professional resources

    Work with industry experts-consulting engineering firms-who have

    “been there and done that”

    Engage with your community

    The best advocates for better broadband are already in your

    community

  • 25 © 2013 Calix – Proprietary and Confidential

    Internal community network-Phase 1

    Building a Community Network

    All IP

    over

    Ethernet

    over

    Fiber

    The Cloud

    One Network

    Data

    Center

    City Building #1

    City Building #2

    Electric Sub-Station #3

    10 Gigabit Redundant Ring

  • 26 © 2013 Calix – Proprietary and Confidential

    Leverage community network-Phase 2

    Serving Business and Anchor Institutions

    All IP

    over

    Ethernet

    over

    Fiber

    The Cloud

    One Network

    Data

    Center

    City Building #1

    City Building #2

    City Building #3

    10 Gigabit Redundant Ring

    Schools

    Mobile and Smart Grid

    Wireless

    Business

  • 27 © 2013 Calix – Proprietary and Confidential

    Expanding network to serve consumers-Phase 3

    Serving Residential Subscribers

    All IP

    over

    Ethernet

    over

    Fiber

    The Cloud

    One Network

    Data

    Center

    City Building #1

    City Building #2

    City Building #3

    10 Gigabit Redundant Ring

  • 28 © 2013 Calix – Proprietary and Confidential

    Maquoketa 3,600 meters, average density of 851 per square mile

    30% Take Rate 50% Take Rate 70% Take Rate

    Cost per Home

    Passed

    $550

    $550

    $550

    Incremental

    Cost per Home

    Served

    $650

    $650

    $650

    Meters served 1,080 1,800 2,520

    Total Cost $2.7 million $3.2 million $3.6 million

    Actual Cost

    per Home

    Served

    $2,500

    $1,800

    $1,400

    *Assumes all aerial construction. Does not take in to account

    make ready costs, IPTV headend or engineering costs

  • 29 © 2013 Calix – Proprietary and Confidential

    Most successful towns have used their city owned electric

    Municipals and Fiber Access

    Broadband as a source of expanded revenue

    Entering broadband is a standalone business decision Each subscriber generates $50-150 per month

    Broadband as an enabler of grid modernization

    Two-way communications network to sub-stations and homes at no incremental cost

    Public-private partnerships Indianola, Iowa Found a nearby telecom operator that wanted to expand its services