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Making the Access NETWORK PLANNING & IMPLEMENTATION GUIDE

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Network Planning & Implementation Guide

FTTH • WI-FI • IPTV • VOICE • WIRELESS • VIDEO • DATA • FTTH • WI-FI • IPTV • VOICE • WIRELESS • VIDEO • DATA

Sponsored by:

• Service Provider

• MDU

• Hospitality

Making the AccessNETWORK


Even more, Tellabs® Optical Enterprise helps you save money by using less space, with less thermal and less power demand. Better yet, you can open new revenue streams by offering new high-bandwidth business services.

GPON is passive by nature, and thus lowers power, space and thermal demands. This directly results ina rippling effect of exponential savings not only in CapEx, but also in on-going OpEx.

Will 1 Gigabit fit on your desktop? Bring more bandwidth indoorswith

Fiber to the Curb, Node or even to your Premises isn’t close enough anymore. Your customers need high-bandwidth services delivered all the way to their desktop. Service providers must quickly and cost-effectively migrate to solutions that deliver the maximum bandwidth.

The answer is Optical Enterprise from Tellabs. Our new GPON feature enables the Tellabs® 1100 Multiservice Access Platform to deliver 1 Gigabit service to end-users, when used as an optical line terminal. Inside the customer premises, the Tellabs® 1600-709/729 optical network terminals extend fiber transport all the way to the end-user. These indoor ONTs can distribute Gigabit Ethernet services in MDU applications, feeding 24 desktops. Or, with optical splitters strategically placed inside the building, service can be delivered to single ONTs at the desktop.

• Use less power and save space• Gain more bandwidth

• Lower CapEx and OpEx• Enhance revenue by offering new business services.

The ultimate GREEN solution

From creation of the business case

to supply of end-to-end passive infrastructure, FTTx electronics and DIRECTV’s

revolutionary IP-based MFH3 solution, AFL has theproven expertise and products to connect your community.

800.235.3423 • 864.433.8072www.afltele.com/go/MFH3

© 2009 AFL Telecommunications LLC.

FTTH Made Easy™

with IP-based MFH3™

North American FTTH .........................................2

TESTING FTTx PONs .............................................4

Tough Fusion Splicers ........................................6

Making Your Marc ............................................9

Room to Grow ....................................................10

MDU Stimulus Plan .............................................11

DC Circuit Upholds FCC Order ........................15

Harborside..........................................................17

MFH3 Platform ....................................................18

High Speed Internet Access ............................19

Peabody Hotel Case Study ..............................21

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The Planning & Implementation Guide is sponsored by Broadband Properties magazine and AFL Telecommunications with the

objective of helping you evaluate, design and implement last mile solutions from FTTH to wireless. For questions or comments please contact AFL Telecommunications via 864-433-5388.

The sponsors would like to acknowledge the contributions of

the clients and partners listed below:

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For questions and comments regarding this publication, or to see what FTTH Made Easy™ can do for your project, please call 864-433-5388.

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1

These pages highlight ways to make money from ultra-fast broadband services. It all seems confusing at first. There’s the familiar coax, of course, but there’s also video delivered over Ethernet Cat5 or Cat6 cable, or over fiber optic cable. Most of us know about individual satellite dishes, but aren’t those master-antenna systems huge and obtrusive?And what about the installation and testing challenges? These pages highlight the fact that “different” and “new” or “advanced” do not always mean “more complicated.” In fact, new satellite and fiber technology is easier to live with than copper. Much easier. Think “Toyota” and not “BMW” when it comes to mileage and maintenance, but think BMW or Corvette when it comes to performance.Old copper-savvy technicians go ga-ga when they see what optical test equipment can do to almost effortlessly pinpoint the

few problems that might arise, or to ratify the quality of a new installation. And optical connectors and fusion splicers make the deployment task much easier than even a few years ago. You can even drop the darn things or bump them hard against the service van. I’ve taken classes with some old guys and gals being retrained for fiber. The first hour is approached with trepidation. The next week or two of classes is a revelation. So many of the problems and uncertainties and expenses of old coax deployments simply disappear. Property owners and managers have begun to share that revelation. Check out the case studies in these pages – a hotel in Orlando, an MDU complex in Naples – to get started. And note the national data on fiber deployments from market research expert Mike Render as well. Savvy companies like DirecTV have been winning customers with standardized, robust deployment technologies – most notably DirecTV’s MFH2 and MFH3 approach to deploying video in MDUs.In short, there are no clunkers in these new broadband technologies. The auto industry should take note.

By Steven S. RossCorporate Editor, Broadband Properties Magazine

Take a Drive in the Fast Lane


Overview of North American FTTH

Overview ofNorth American FTTHMichael Render RVA Market Research

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Fiber to the Home (FTTH) in North America continues to grow at a dynamic rate – despite difficult economic times. As of April 1, 2009 there were over 15 million homes passed in North America and nearly 4.5 million connected.

FTTH now passes 12% and serves nearly 4% of all homes in the United States.

The forces of FTTH market growth are diverse. Telephone giant Verizon accounts for roughly two thirds of the growth, but nearly 700 other providers comprise the rest. These other providers range from relatively large telephone companies to small independent telephone companies, municipalities, competitive providers, and new housing developers. Many of the small rural telephone companies have been particularly active in FTTH, including several who are completely replacing their old copper networks.

Service Provider

Overview of North American FTTH

RVA Market research and Consulting LLC is an experienced full service market research firm and is the leading market research firm tracking the Fiber to the Home market in North America. The company offers in-depth reports on North American FTTH, and the status of broadband in individual states. In addition, RVA conducts custom market research projects for a wide variety of firms.

www.RVALLC.com918-592-3100

3

To date, most of the FTTH deployment has been in the United States, but growth in Canada, Mexico and the Caribbean is now accelerating.

Based on extensive surveys of FTTH and broadband consumers, satisfaction with FTTH is very high as compared to other types of broadband and television delivery. FTTH gets especially high relative ratings for broadband speed, and the quality of television signal.

While much of the FTTH installed to date has been in existing neighborhoods, FTTH has been growing dramatically in greenfield new housing developments. FTTH is especially prolific in large master planned housing developments – large developments usually representing over 1,000 homes. It is expected that about 35% of the homes built in such developments in 2008 had FTTH… and over 80% of homes built in brand new master planned communities breaking ground in 2008. FTTH use in smaller subdivisions is also increasing rapidly.

When given a choice of five new housing development amenities, very high speed Internet from a direct fiber line is perceived to be more important than green spaces, 24 hour security patrols, neighborhood pools and fitness centers

The consumer is obviously continuing to embrace FTTH, and continuing future growth is likely.

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TESTING

FTTx PONs

YRT2 delivers the triple-playService, Service, Service

Testing FTTx PONs

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Fiber to the home or business (FTTx) access networks deliver voice, video, and broadband Internet services directly to the subscriber premise. Most commonly they are point-to-multipoint passive optical networks or PONs, which allow multiple subscribers to share the same feeder fiber to reduce network construction costs. Current generation FTTx GPON networks can span cable distances of up to 20 km (12 miles) and operate at an aggregate bit rate of up to 2 Gb/s. At a typical splitter ratio of 1 x 32, an FTTx PON can provide each subscriber a broadband service rate of over 30 Mb/s.

While these bit rate and distance capabilities are dramatic improvements over traditional access technologies such as POTS, DSL, and cable TV, they are still modest in comparison to the bit rates and span lengths found in core (long-distance) fiber optic networks. As a result, fewer measurements are required to certify FTTx PONs than core fiber optic networks, as shown in Table 1.

Moreover, certification of FTTx PONs never requires cross-talk, noise, and tests required to certify copper access networks. So it is likely that technicians familiar with testing traditional UTP or coax-based access networks, or fibers in the core network, will find that certifying and trouble-shooting FTTx PONs to be relatively straight-forward. However, they still will need to have a basic understanding of how PONs work and learn a few new testing strategies to be able to test FTTx PONs efficiently.

Type 2 FTTx PON (Figure 2) replace the fusion-spliced splitter with a connectorized splitter module, which is installed in a weather-proof cabinet. One benefit of using a connectorized splitter is that splitter modules can be added only when needed (when enough customers have subscribed). The second benefit is that a new test point is added at the splitter cabinet (TP3).

A Type 3 FTTx PON (Figure 3) adds an aerial or buried weather-proof, Drop Cable Terminal near subscriber locations. This allows the FTTx service installer to connect service to a given customer using a connectorized drop cable. It also adds another test point (TP4).

FTTx PONS CORE NETWORkS

Insertion Loss yes yes

Optical Return Loss (ORL) yes yes

Connection/spice loss and reflectance

yes yes

Length useful useful

Polarization Mode Dispersion (PMD)

no need yes

Chromatic Dispersion (CD) no need yes

Table 1: Certification requirements of FTTx PONs and core fiber networks

Three Popular FTTx PON ArchitecturesEvery FTTx PON connects a ‘head-end’ device called the Optical Line Terminal or OLT with multiple customer-end devices called Optical Network Terminals or ONTs. In addition, every FTTx PON

Figure 1: Type 1 FTTx PON (fusion-spliced from end-to-end)

Figure 2: Type 2 FTTx PON (has connectorized splitter module)

Service Provider

Figure 3: Type 3 FTTx PON (connectorized splitter module and drop cable terminal)

includes a feeder fiber, a 1 x N splitter, and up to N customer fibers. The simplest or ‘Type 1’ FTTx PON (Figure 1) is fusion-spliced from end-to-end, and provides just two connectorized test points, one at the OLT and the other at the ONT end of the network. In Type 1 networks one fiber is dedicated and installed to each dwelling or business unit, whether or not the resident is currently a subscriber.


Testing FTTx PONs

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While optical loss test sets measure end-to-end loss using a (more or less) continuous light or CW signal, an OTDR measures loss as a function of distance by transmitting pulses of light and measuring the light reflected by the network under test as a function of time. This allows OTDRs to measure the loss of individual connections, splices, splitters, and unexpected ‘events’ such as fiber bends. The disadvantage of OTDRs is that they cannot measure bi-directional loss. Instead they measure round-trip loss and divide by two, which is the average loss of both directions. A typical OTDR application is to measure the end-to-end and event loss of a Type 1 network from the customer end (TP5), using launch and receive test cords so it can see the loss of the ONT and OLT connector (Figure 5).

An example trace is shown in Figure 6. Note that drops represent event insertion loss, for example the loss of a connection, splitter, or splice, while ‘spikes’ represent event reflection.

OTDRs can analyze a trace to calculate end-to-end loss, ORL, the loss and reflectance of each event, and the loss slope of fiber sections. The capabilities of the OTDR and OLTS are compared in Table 2:

Each of these popular PON architectures dictates a different testing or certification strategy. However before we discuss these, a few ‘tools of the trade’ need to be introduced.

Certification Test Sets – OLTS and OTDRTwo types of test sets are used to certify optical fibers in core or FTTx networks: the optical loss test set or OLTS and optical time-domain reflectometer or OTDR. OLTS units are normally used in pairs, with each unit containing an optical power meter (OPM) and stabilized light source (LS). The two units may be identical or one may be a lower function ‘remote’ unit and the other a full function ‘main’ unit. Automatic optical loss test sets used to certify FTTx PONs typically contain three lasers: 1310, 1490, and 1550 nm, allowing a pair of OLTS units to measure the downstream and upstream loss of an FTTx PON with the press of a single button. Measuring loss separately two directions is called bi-directional loss measurement. A typical OLTS application in Type 2 and 3 FTTx PON networks is to measure bi-directional loss from TP1 (central office) to TP3 (splitter pigtails) as each splitter module is installed (Figure 4.)

Figure 4: OLTS pair measuring bi-directional loss of a PON feeder fiber and splitter.

Figure 5: OTDR used to measure event and end-to-end loss of a Type 1 PON from the customer location (TP5)

Figure 6: OTDR Trace for network shown in Figure 5

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ConclusionThe two most important FTTx PON certification measurements are end-to-end insertion loss and ORL, both of which can be done with an OTDR or OLTS. However, an OLTS must be used if bi-directional loss measurements are required, and only an OTDR can locate bad splices, connections, or other faults. FTTx PON certification is normally done on an end-to-end basis on Type 1 networks and in stages on Type 2 and Type 3 networks.

OTDR OLTS

Insertion Loss Average of upstream and downstream loss (which in FTTx PONs are normally equal to within a few tenths of a dB)

Bi-directional loss (each direction is measured separately)

Optical Return Loss (ORL) Can be estimated from trace

Direct measurement

Connection/spice loss and reflectance

yes no

Length yes yes

Table 2 OTDR and OLTS capabilities





TOUGH Fusion Splicers

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By the late 1980’s fusion splicing had become fully automated by use of CCD camera-based optical systems that provided precise observation of fiber alignment and control of the splicing process. A single-fiber splicer using such an observation capability with the Profile Alignment System (PAS) core recognition algorithm could provide core alignment to sub-micron accuracy. This provided extremely low splice loss in a user-friendly automated splicer. Applying essentially the same optical system to a mass fusion splicer allowed high-productivity splicing of 12-fber ribbons.

These camera-based optical observation systems allowed development of software protocols in these fusion splicers to not only automate splicing, but to provide the operator with important quality detection capability, diagnostics, and error messages. For example, fiber alignment (or core alignment in the case of the single-fiber splicer) could be used to prevent bad splices and provide an estimated splice loss. Bad cleaves were similarly detected. A diagnostic Arc Test (which utilized the camera capability to measure the melt-back amount of non-spliced fibers) could be used by the operator to check and calibrate the heat output of the electrodes and thereby maintain good operating performance. These developments revolutionized fiber deployment by changing it from an extremely skill-dependant exercise, and also greatly improving the quality of the result.

While user-friendly, these splicers were quite large and heavy, typically between 20 and 30 pounds. That weight did not include a battery, which, with the battery technology of the day (and the power consumption of the splicer) would add very significant additional weight. Due to the size and weight and also complexity, these fusion splicers were usually relegated to rather benign splicing environments such as use in a central office, or splicing vans and trailers. For more remote locations, mechanical splicing continued to be employed.

In the early 1990’s broadband trials and deployments began to make an impact. It was desirable to provide the long-term

system reliability of a fusion splice in a more portable splicer. In response, the technology of the day allowed the introduction of unsophisticated mini-splicers. These splicers utilized a simple fixed V-groove to provide passive alignment of the fiber cladding, and they dispensed with the CCD cameras and automation in order to allow creation of small cost-effective machines. As time progressed, it was possible to develop a new generation of mini-splicer that did utilize the cameras to once again provide an automated system with embedded quality checks.

Over the years these mini-splicers improved with subsequent further miniaturization and better features. By 2000, even PAS core-alignment and 12-fiber mass fusion capability was available in such a mini platform. By this time the splicers had been refined for field use to incorporate a wind protector that could ensure a stable arc even in the presence of a 30mph wind, and the LCD video monitors were also improved to ensure easy viewing in direct sunlight. A slide-in battery pack could be substituted for the AC adapter to provide a significant remote-site splicing

ToughFusion splicers For aroughFTTX environmenT

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7

capability in a highly portable 6-7lb field-portable splicer. This set the stage for the massive surge of broadband FTTH/FTTX activity in recent years.

During these recent FTTX deployments, use of the fusion splicer in remote-site harsh environments became the norm. Fusion splicers were increasingly subjected to harsh weather such as exposure to rain and dust. Furthermore, the nature of the FTTX deployments mandated frequent shifts from one site to another (often several times in a single day) and use for aerial cable deployments. This sometimes resulted in a splicer being dropped during setup or transportation to the next splicing location.

Examination of repair and service data showed a need to try to improve the robustness of the fusion splicing platform. A Pareto analysis revealed that the primary field-induced failures were the result of the splicer being subjected to a drop or impact. Dust and water exposure have also been significant causes of splicer downtime (and the need to return the splicer to the factory for service).

Ruggedized field-portable fiber-optic test equipment had become industry-standard for some time. A typical hand-held power meter or light source uses a rigid structure encased in a soft rubber “boot” to prevent damage in the case of the unit being dropped. Such test equipment is usually undamaged after a 30-inch drop. If we consider a power meter for example, the internal structure consists of a circuit board, a battery, and a very small photo-detector. If the structure is sufficiently strong, the internal components will survive a drop, and it is not too difficult to maintain the alignment of the photo-detector with the connector port.

For a fusion splicer, the engineering challenge is much greater. One challenge is to maintain the integrity of the V-groove alignment system and to maintain alignment of the fiber clamping system to the V-grooves. This is difficult because the clamps must move relative to the V-grooves to drive the fibers together during the splicing process. Also, the optical system must be protected from shock and impact, and it must remain in precise alignment to the V-grooves in order to properly observe the fusion process.

It is important to note that in the case of a fusion splicer, a drop or impact may result in the catastrophic mechanical failure of some part. But a “soft-kill” will result even when nothing is broken if the precise alignment of important components is not maintained. Because of the mechanical complexity of the fusion splicer, and the need for precise alignment of the components, until very recently no manufacturer was able to offer a family of fusion

splicer capable of meeting the 30-inch drop test objective of Telcordia GR-765-CORE.

Meeting the Telcordia 30-inch drop test objective and also providing greater robustness for exposure to rain and blowing dust were established as design goals for a new generation of fusion splicers. To meet these goals, a complete component-by-component level design approach was required.

60%

50%40%30%20%10%0%

Drop

Dust

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Adding rubber bumpers to the exterior corners and edges of the fusion splicer is important and reduces the impact force by half. While helpful, this is not sufficient to ensure survival of the splicer. Similarly, simply increasing the mechanical rigidity and strength of all components is also not a complete solution because the overall weight of the splicer would be increased and field-portability would suffer.

A component-by-component analysis reveals which items should be more rigid and strong, and in some cases, which items require a drastic decrease in weight. Improving robustness and strength of external parts is generally the correct approach, but in the case of internal components, reducing weight may be more important.

An example is the camera system for the PAS core-alignment splicer. The optical system for this splicer must utilize precise focus motion so the camera can provide sub-micron core observation. The standard practice had been to motorize the motion of both the 2 perpendicular X/Y observation axes cameras and also their related lenses. By fixing the position of the lenses and motorizing the movement of only the cameras, it was possible to reduce the movable mass by 70%. This greatly simplified the task of ensuring maintenance of proper optical alignment after an impact.

Two external parts of the splicer required special attention. In the case of the LCD monitor, it can be encased in a protective case and provided with an impact resistant hinge. However the viewing surface itself needs special protection from impact. This is provided with a transparent shield to protect the LCD while maintaining easy viewing in direct sunlight.

Another part that required consideration was the splicer carrying handle. Typical carrying handles for fusion splicers have been rigid hinged types. During a drop, not only can such handles be damaged, but their rigid handle structure can transmit shock to the splicer body and internal components. A resilient nylon strap provides a better solution.

Similar careful analysis has been carried out throughout every component and subassembly of the new generation fusion splicers. As a result, a family of splicers has been introduced that are resistant to drops and impacts, and significant exposure to dust and rain. These toughened fusion splicers are therefore designed to meet the challenges of the FTTX environment and stay out in the field in tough broadband deployments.

Service ProviderAFLtele.com/go/Rugged

Making Your Marc

9

Demarc...ation that is. The box on the side of the house doesn’t get much press, but plays a significant role in providing connectivity for phone, video, and data services. Created by telcos in the 80’s by FCC mandate, the demarc provides the point at which the service provider hands off service to the home owner.

Home owners today spend over one hundred dollars each month for phone, video, and data services and the box on the side of the house should reflect the cost of services being provided. So, aesthetics are important, but so is functionality. There are many functional reasons the service provider wants to have a demarc too. The demarc delineates responsibility of service and home wiring, it provides single point for terminating cables run throughout the home, it provides a secure point of entry for services, and it provides shelter to various connectivity components from the environment. As service operators provide more and more bandwidth, the

connections to the home and quality of those connections becomes critical. For example: VDSL2 requires copper connections that are clean, clear of corrosion, grounded, and protected from the environment. FTTH optical components need to be kept clean, out of the weather, and secure. Coax connections and splitters need to be protected from corrosion and grounded. So, with higher bandwidth services provisioned at the home, the look, longevity, strength, and functionality of the demarc are as much important to providing quality of service as any other part of the system.

Today’s high strength polymer alloys with UV inhibitors provide for exceptional weathering with little to no fading in tough climates with excellent resistance to impact in cold weather or warping from high heat. The demarc is last piece of the OSP hardware used to provide telecommunication services and should be just as robust and well engineered as any other part of the system.

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MakingYour


The people who run independent operating companies (IOCs) don’t pretend to know what’s coming down the pipe, but they do know their pipes had better be big enough to handle it. That’s why Woodstock Telephone Company in southwestern Minnesota is upgrading its network to a fiber-to-the-premises (FTTP) infrastructure now.

With an operating territory that covers about 450 square miles, Woodstock provides voice and Internet services to five communities, which include many users in rural areas. Most of Woodstock’s customers have had DSL access for years. But a few years ago, their appetite for bandwidth began to outstrip the telco’s ability to satisfy it.

Although Woodstock can deliver sufficient bandwidth, via 2,000-foot copper loops, for its business users within its five towns, it struggles to serve its more rural subscribers. “We have an awful lot of farmers out here who are pretty large businesses, and they use that Internet like you can’t believe,” says Woodstock owner and President Ken Knuth. “That’s where we’re really getting hammered.” Many of those customers want even more bandwidth than Woodstock can provide with fiber to the curb, or “fiber to the fence,” as Knuth puts it, and DSL running over 12,000-foot to 15,000-foot loops. Woodstock has put in a great deal of fiber to the curb, “but it was a stop-gap thing at best,” Knuth says. “We could have put the fiber a little deeper into the network, so we’d have shorter loops, but we’re talking about three customers per mile. Pretty soon, you get tired of doing this. It’s just patch, patch, patch, and we weren’t keeping up.”

Concluding that it made no sense to continue spending money on technology that ultimately couldn’t deliver what users wanted, Knuth decided to upgrade the entire Woodstock network to FTTH. Last year the company began driving fiber all the way to the users’ premises. Knuth vowed, “We intend to be out of the copper business in just over two years.”

A Network for Voice, Internet and VideoAlthough Woodstock’s evolving FTTH infrastructure will deliver the voice and Internet services that customers want, Knuth’s basic strategy is to position the company to provide future “pull TV” services--IPTV and video on demand.

Noting that several groups of Minnesota telephone companies have banded together to construct digital headends, Knuth says Woodstock may tie into one of those next year. Because of his belief that pull TV will replace push TV, and because of the fact that Internet traffic increases by about 43 percent each year, Woodstock had little choice but to put an FTTH network in place. “If we’re going to be ready for pull TV, we need a big pipe,” he says.

First, a Snapshot of the “Old” NetworkAnchoring the five-exchange network is a softswitch that Woodstock installed last year. Serving all five exchanges, the switch was Woodstock’s first major step in upgrading the network to FTTH.

Room to Grow

The company uses fiber to link that switch with Tellabs® 1000 Multiservice Access Platforms (MSAPs) in the towns of Holland, Garvin, Russell and Woodstock. Copper loops from those broadband digital loop carriers (DLCs) deliver DSL service to users.

Wanted: A Future-Proof Access PlatformWhen it came to selecting an access platform for the Woodstock FTTH network, Knuth and his team wanted a vendor that could offer two things: the research-and-development capabilities to keep pushing the technology and the commitment to providing long-term support for its existing products.

“We’ve got five or six companies from which we can buy access equipment today, but will they keep up?” says Knuth. “That’s what I worry about.”

He also sought a vendor that can help protect Woodstock’s existing network investments. That means, Knuth says, a vendor he can go to 10 years from now “and see that the equipment I buy [then] might work with the equipment I have today.”

Those two criteria prompted Knuth to choose the Tellabs® 1150 MSAP with its line module for a GPON FTTH solution. In addition to the fact that Tellabs “has more fiber-to-the-prem equipment out there than anybody,” he says that when it comes to evolving the platform’s functions and features, “we expect Tellabs to develop those.”

Knuth points out that he based his decision in part on Woodstock’s long track record with Tellabs, notably the Tellabs® 1000 MSAP series of broadband DLCs. “We stuck with the Tellabs platform all the way through, and we’ve been putting equipment in pretty much every year,” Knuth explains.

Knuth cites as another persuasive factor the Tellabs 1150 MSAP’s non-blocking architecture, with its 720-Gbps backplane, 44 Gbps to every multi-service card slot and 10-Gigabit Ethernet uplink capabilities. “We have to get more bandwidth into our office about every other year. We’re talking about 100 Mbps to a customer, multiplied by 1,100 subscribers. Now we’re talking about 10 Gbps and multiple 10-gig ports on a Tellabs 1150 platform. You’ve got to keep up with the service,” Knuth says, “or you’ll lose out.”

The GPON application appealed to Knuth because it is state of the art. “Remember, we’re putting in a system to last for 25 years. Why put in one that’s going to carry a meg or two? When we have pull TV and stuff like that, 2 megs, 3 megs, 5 megs is just not going to do it. So why not get all we can?”

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Room to Grow

10

Tellabs 1150 Multi-Service AccessPlatform in the Woodstock article.

MDU Stimulus Plan

11

MDU

In a multi-dwelling unit property or master planned community, one of the most challenging, but potentially most rewarding tasks is dealing with the technology-based amenities. If you’ve been involved with MDUs as either a property owner or service provider, you know that these have been challenging times. The MDU vacancy rate is at the highest level since 1987. In addition, additional capacity in the form of units continues to increase, roughly 22,000 units during the most recently completed quarter.

What this means is that the MDU world is in a situation where too many properties are competing for too few tenants. Across the country, although some areas have clearly been affected more deeply than others, cities and suburbs have roughly felt similar pain.

Foreclosed single family homes are now for rent at significantly lower prices than 1-2 years ago. Condos that aren’t selling are now renting. People are doubling up more often, renting with roommates, or even moving back home. On top of the factors that are increasing vacancies from the previous slide, typically a sure-fire way to increase occupancy is to decrease rents.

Obviously, the problem with declining rents is that they further contribute to declining property values, and for those companies that are public, declining stock prices. When faced with the prospect of declining prices, many industries try to add additional value to the package provided in order to try to offset price erosion.

Technology amenities can serve as an incentive to keep a customer, or persuade a customer to come to your property.

Changes in Customer Tastes and NeedsIn the past, the first place a a property manager would look would be to spruce up traditional parts of the property, such as landscaping and paint, resurface the pool or spruce up common areas. Although keeping up appearances is always a good idea, in many cases, these items may not give much bang for the buck. Amenities like the gym and pool are not used by all residents, and there is lower hanging fruit in the form of technology that can provide a very effective differentiation between one property and its competitor. A study was recently completed by the National Multifamily Housing Council that provided some very insightful information (information provided by the IMCC).

The 4 top amenities were:

• Cell phone coverage (Telecom service) • High speed Internet (Telecom service) • HD video (Telecom service) • In-unit washer-dryer

MDU Stimulus Plan with

Note that 3 of the top 4 amenities are technology-based services.

The bottom line is that the amenities which were attractive 10 years ago are now being supplanted by a much more technology-savvy consumer. Where 20 years ago the nation’s cellphone network was just only forming, today it serves as the primary means of contact for a growing number of subscribers. Landline telephone service continues to erode quarter-by-quarter, being replaced by cellphones. In addition, high speed Internet services and accompanying social networking tools such as Facebook and Twitter are vital, especially to the telecommuter. Finally, greater than 35% of the population already owns an HD-capable TV, and with the change to digital TV, it’s virtually impossible to find an analog TV set on the primary market.

All of these factors are reasons that the savvy property owner needs to look at infrastructure in a different light. Whereas a clubhouse and pool may have been indispensible amenities a generation ago, the communications infrastructure must now have a higher profile. It is not unusual now for a moving decision not to be made based upon the carpet color, but on whether true HD TV services can be provided over the property’s wiring, or whether Internet services are sufficient for the telecommuter to utilize the corporate network at home.

On top of the trends just highlighted, 86% of the US purchases a pay TV service, and 75% purchase broadband services. This means that, contrary to a swimming pool, the vast majority of the residents of a property use these services on a daily basis.

All TV services, including all HD channels, are now digital. The days of a 30 channel analog headend providing a basic channel package are rapidly growing to a close, and those operators who only provide that option will find that their customers will just replace them, either with another provider, or by the Internet.


MDU Stimulus Plan

12

MDU

With any home, the linchpin of the entertainment system has been, and will continue to be, the TV. The computer will continue to complement the TV, and the services will continue to converge, but in the home, the TV will continue to be the primary delivery screen.

With so many people how purchasing HD-capable TVs, many people are making the decision not to move to a location where HD services are not available.

Likewise, people want freedom about how they interact with their various devices. DIRECTV’s DVR scheduler feature allows your tenant to be able to remotely program their DVR and watch then watch the content whenever they’re ready.

Clearly, in the near-term, buildings that don’t provide high quality technology amenities will soon be obsolete. Obsolescence will lead to lower rents/values.

Technologies exist today that allow virtually every property owner to provide very competitive and high quality technology amenities. 5 years ago, this technology wasn’t available, but its now, and we’ll mention the technology later in this article.

At the time that a property needs a reliable partner, the incumbent carriers are doing precisely the things that have not endeared them to their customer base. Property owners often face spiraling cable bills, even while the service offerings continue to lag companies like DIRECTV. The bills are sometimes indecipherable.

DIRECTV is the AnswerDIRECTV is now the nation’s largest pay TV company. DIRECTV, as the linchpin of a technology amenities package, provides an unbeatable package including fantastic video quality, more HD channels, and more exclusive sports packages than any other provider.

DIRECTV is well known as the exclusive provider for NFL Sunday Ticket, and recently announced exclusive rights for NFL Sunday Ticket until 2014. Other sports package include Major League Baseball, college football and basketball packages, NHL Hockey Center Ice, Nascar Hot Pass and other subscription packages. Scoreguide, provides you with a real-time look at all of your favorite scores at the push of a button. DIRECTV provides exclusive programming around golf and Tennis major tournaments with multiple channels during the early action.

On the interactive side, there’s a game lounge, where users compete against other people in dozens of games. In addition, DIRECTV is building the next generation of interactive services, featuring an App Store similar in concept to the App Stores run by Apple and BlackBerry for their interactive phones.

There’s an extensive video on demand library, and finally DIRECTV has a ton of international programming to satisfy a wide variety of user tastes.

Indirect and Direct Property StimulusAdding DIRECTV as an amenity can help to stimulate the bottom line directly. For example, a typical voice, data, and video package, purchased separately, can easily cost a subscriber $120 dollars or more per month.

When purchased in bulk, the cost of those services are approximately $45.00. $120 minus $45 leaves a margin of approximately $75.00/subscriber/month, which can be used to pay for the infrastucture and support costs, as shown in figure 1.

In addiiton, DIRECTV offers 3 different types of commissions, including a large up-front “pre-paid” commission and two commissions paid on a monthly basis.

Indirectly, having the service can be used to offset rent decreases.

When purchased in bulk, DIRECTV digital service can be offered at a cost of as low as $9.99/month. Providing the bulk service as an amenity can be bundled into the monthly rent, consumers can see that the package provides significant value to offset

rent decreases. Given that the vast majority of the population has a pay TV or internet service, most customers can

appreciate the value that’s bundled for them.

Figure 1: Triple Play Services

MDU Stimulus Plan

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Finally, keeping the technology infrastructure up to date is now as or more important than building that new clubhouse or landscaping package. There’s a clear consensus emerging in the real estate appraisal community that the value of the technology infrastructure has a direct relationship on the value of the property. This value will only grow as the impact of the services carried over the network continues to grow.

How do we start? DIRECTV has two different business models. These are how the subscription packages are presented to the property.

First, Direct-to-home is a model where there is a direct billing relationship is between DIRECTV and the customer. The service is delivered over the property wiring, and the pricing is standard retail pricing. This business models is useful when the subscription rate is not 100%.

The second type of business model is known as bulk. In this case, it’s basically what it sounds like. The service is bought in bulk and sold in bulk. Bulk service is typically, but not always, built in the Homeowner dues or fees, or monthly rent. In this model, instead of retail pricing, pricing is substantially below the retail price of the service. The system operator or property owner can then bundle the billing with voice, data, or security services to provide a complete amenity package. For bulk service, however, the business model and pricing is such that the property needs to commit to a 100% subscription rate for the property.

Within the Direct-to-home business model, the pricing schemes are simple. It’s basically retail DIRECTV service.

However, with bulk service, there are several options.

First, there’s “SMATV”, which is an acronym for “Single-Master-Antenna TV” service. This is what is often seen in a hotel. The system typically has a small, defined set of channels, and delivers no-frills TV without the complete DIRECTV experience. The next step up is “Analog bulk”, which is a defined set of channels. Both of these services are delivered over a master headend, shown in figure 2.

The service is then delivered over coaxial cable, and doesn’t require a settop box to see the channels.

These business models are typically applicable for student housing, apartment housing or retirement homes, places where the customers may want a no-frills, low-cost package, without the options for HD, DVRs, etc.

The next bulk business model is called “Digital Bulk”, and it delivers the entire DIRECTV experience, including program guide and options for pay-per-view, HD, DVRs, the Scoreguide service, interactive games, etc.

In addition to the base subscription packages, premium channels such as HBO, Showtime and premium services such as HD and DVR services can be purchased in bulk and provided to the resident at a substantial discount to retail.

Finally, a la carte upgrades for all of these packages are available for each of these services. The system operator or property gets a bill for the basic service, and the customer gets a bill reflecting any lease fee charges for settop boxes, pay-per-view, or any a la carte services.

Technology DeliveryDIRECTV needed to develop its own technology to deliver all of the content that it offers, since a typical cable TV network cannot support all of the content.

MFH2 (MFH stands for Multi-family Housing) delivers DIRECTV services with in an MDU over the existing coax network. It is the most common delivery method, and is an excellent choice where the property is pre-wired for coaxial cable. MFH2 uses an advanced version of the “RF technology” that has been around for years, but allows the operator to bring unprecendented choice of content to the end user. A sample component from an MFH2 system is shown in figure 3.

DIRECTV has also developed a technology platform to deliver the next generation of services. It’s called MFH3, and uses IP technology, the same protocol that’s used to deliver Internet-based services and voice over IP. Although MFH3 can be delivered over coaxial cable, it’s most commonly deployed over twisted pair copper over DSL lines, or through 100

Figure 2: Analog Bulk Figure 3: MFH2 Component

MDU Stimulus Plan

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MDU

megabit per second Cat 5 or 6 copper or fiber optic pipes. The MFH3 headend is shown in figure 4.

MFH3 delivers the complete DIRECTV experience, and enables the system operator or property owner to deliver today’s and tomorrow’s services, including triple or quad play services. In addition, this system allows the insertion of locally generated content into the program guide. Through DIRECTV’s partnership with Technicolor and Thomson, this system provides real-time service monitoring, so you’ll know if there’s a problem without your customers needing to phone it in, enabling you to provide a much higher level of service.

See the figure below for a summary of the various business model and technology choices discussed.

The typical choice for apartment buildings and student housing with coax networks is either SMATV or analog bulk service. MFH2 is also deployed in apartment buildings over coax, and MFH2 is also used in condos delivering digital bulk service.

Finally, MFH3 is typically deployed in apartment, condos, or master planned communities over twisted pair, Cat5/6, or optical fiber. MFH3 delivers digital bulk service.

Living in the Real WorldNow, let’s take a look at a real-world example using real-life numbers. In this situation, a master planned community was faced with an incumbent providing substandard service. There were limited HD options, poor and variable Internet service, and most frustrating of all, unstable pricing. Residents had a really hard time understanding their bills. The incumbent had no desire to upgrade the infrastructure, and so the homeowner’s association evaluated multiple options, including the existing incumbent carriers for both cable and telco service, and competitive satellite providers. The services offered included voice, video, and data, with video and data provided on a bulk basis to all subscribers and voice assuming roughly a 30% take rate.

There were approximately 500 users in the community, and in this scenario, the operator evaluated DIRECTV’s MFH3 platform deployed over a new fiber optic infrastructure, which is typically seen as the most expensive, but most future-proof deployment option.

Below are the are the unretouched customers numbers.

The blue bars highlight the savings by going with DIRECTV on a year-by-year basis, and the two bars highlight the cumulative amount of savings with two different scenarios. The main message here is that even with the most expensive DIRECTV platform, this operator found that a massive amount of savings, plus better service, would be available by going with DIRECTV.

SummaryThe main messages to remember are the following: 1) Consumers’ tastes are changing. What used to work may not work now, but technology amenitites are clearly the wave of the future and can help offset rent or price decreases. 2) There’s no better technology amenity than DIRECTV, and DIRECTV has a wide variety of business models and technologies for a wide variety of MDU properties3) Finally, adding DIRECTV to your property can add value to the property, and potentially decrease costs.

For More Information

AFLtele.com/go/DIRECTV

Figure 4: MFH3 Headend

Making the NET-WORK PLANNING & IMPLEMENTATION GUIDE

DC Circuit Upholds

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In October 2007, the Federal Communications Commission (“FCC”) issued an Order providing that cable companies could not enforce current exclusive-access provisions or enter into new such exclusive provisions in agreements to provide cable services in multiple dwelling unit properties (“MDUs”). In other words, the 2007 FCC Order barred franchised cable providers from entering into new agreements that provide that they shall be the exclusive video provider in MDUs and from enforcing such provisions in existing agreements. The cable industry as well as several real estate entities appealed the FCC Order. They argued particularly that the retroactive effect of the FCC’s Order to apply to existing agreements was beyond the FCC’s authority.

On May 26, 2009, however, the U.S. Circuit Court of Appeals for the D.C. Circuit (“DC Circuit”) upheld the FCC’s Order. The DC Circuit determined that the FCC’s Order to ban exclusivity could apply not only to future agreements but also to existing contracts with MDUs. The decision alters years of practice of the cable industry and provides significant benefits to cable competitors by opening up thousands of MDUs to potential competition. The DC Circuit did not address other types of agreements with cable providers, such as bulk contracts and marketing agreements and also did not address exclusive agreements by providers that do not use public rights of ways, including private cable operators (“PCOs”).

The cable industry as well as several real estate organizations had a history of entering into such exclusive right of entry agreements, exclusive easements and other such arrangements providing that a particular cable company would be the exclusive provider of video services in the particular MDU. Under such exclusive agreements, the cable provider would generally bear the costs of constructing and installing its system to provide services, and would often provide consideration to the MDU owner, knowing that it would obtain a return on its investment from unit owners and residents who did not have a choice in service providers. The

DC Circuit Upholds FCC OrderBanning Cable Providers’MDU Exclusivity By Gary Resnick, Board of Directors,Independent Multi-Family Communications Council (“IMCC”)and Shareholder, Gray Robinson, PA

MDU

FCC Order upheld by the DC Circuit alters the traditional exclusive access agreement entered into by cable providers. The decision also opens up thousands of MDU units to video competitors including incumbent local exchange carriers, such as Verizon, ATT, Qwest, etc., and PCOs. The FCC Order upheld by the DC Circuit, however, has limits and does not prohibit all video service providers from exclusive arrangements or apply to other types of arrangements that may be entered.

First, the FCC’s ban on MDU exclusive agreements applies only to franchised cable operators. By its own terms, it does not apply to PCOs or other service providers that do not use the rights of ways. The FCC Order has created opportunities for PCOs that previously did not have access to certain MDUs. In fact, many of us considered how various providers and property owners would have reacted if the DC Circuit reversed the FCC Order as to existing agreements and reinstated exclusive cable agreements. However, we do not have to unravel years of activity since the FCC Order. While the FCC Order does not apply to PCOs, PCOs should be cautious about relying upon their ability to have exclusive access or to be the exclusive service provider in MDUs. The FCC has an open proceeding to consider extending its 2007 Order


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to other video service providers that do not use public rights of ways. While there are three new FCC Commissioners (including a new Chairman) who were not on the Commission for the 2007 Order, Commissioner Michael Copps (who remains one of the five Commissioners) expressed his desire to prohibit similar service providers from entering into exclusive agreements. Thus, the ability of PCOs to enter into exclusive service or exclusive access agreements with MDUs may be temporary.

Second, the 2007 FCC Order and DC Circuit decision do not impact bulk agreements, exclusive marketing agreements, and other arrangements with MDUs that do not restrict access. Bulk contracts provide that a service provider will bill the MDU owner or manager for certain services that it provides to all – or nearly all – units at a discounted rate. Such bulk contracts are common particularly in states that have cable mandatory access laws, since exclusive access agreements are not effective to prohibit cable access in MDUs. Bulk contracts do not restrict access, and

thus are not prohibited by the 2007 Order. Similarly, exclusive marketing agreements provide that the MDU owner will only market a certain provider’s services, but do not restrict access to other providers. These issues, as well, will be addressed in the FCC’s open proceeding to consider extending the 2007 Order. Yet for now, there is nothing restricting cable and other video service providers from entering into such arrangements. It is generally felt that the FCC will leave intact the ability to enter into bulk and marketing agreements, and thus, that these become increasingly important in a more competitive environment.

Video and broadband, in particular, have been characterized as industries where regulation did not keep up with practices and technology. While the FCC’s 2007 Order and DC Circuit decision impose new regulations, the industries are already considering alternatives. With the ban on exclusive service and access arrangements, other creative arrangements with MDUs continue to emerge. For example, more creative forms of easements, ownership of infrastructure and structuring corporate relationships are all being used to attempt to obtain advantages in MDU environments.

The IMCC submitted comments in the FCC’s open proceeding addressing the issues of extending the 2007 Order. IMCC members also met with FCC Commissioners and staff to discuss its position on these issues. With three new Commissioners and many new staff at the FCC, however, it remains important for the IMCC to remain engaged and for those impacted by FCC decisions to communicate about their businesses and services with the FCC.

IMCC is a non-profit organization created to support the rights of independent communication service providers and their business models by being the only voice representing them in front of the FCC. IMCC is a clearinghouse of information, and is the only place a PCO can go to find out what is happening in the industry regarding regulatory issues. The mission of the Independent Multi-Family Communications Council is to bring together broadband service providers, technology suppliers and multi-family dwelling unit owners to pursue mutually productive goals which benefit residents. Membership is open to system operators and companies within the telecommunications industry as well as MDU owners. It is only through member support and payment of dues that IMCC continues to lobby on behalf of the industry, ensuring its success both now and in the future.

For more information on becoming a valued member,please contact Executive Assistant, Valerie Sargent, at [email protected] or (949) 274-3434.

Feel free to visit our websiteimcc-online.orgfor more information.

MDU

Harborside

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Harborside

When many people think of Florida, they often think of sun and sand, the ocean and retirement. However, there’s one community in Naples, Florida that is looking forward to the future. For years, the Venetian Cove Club, La Maison Club, and the Madrid Club buildings in Naples had put up with a limited offering for voice, data, and video through the local cable TV company, delivered over a 20-30 year-old coax network. The incumbent provider was not interested in upgrading the network to enable today’s and tomorrow’s services.

Enter Ethos Media LLC. Ethos is an innovative Michigan-based company comprised of veteran IP-network operators. Being an innovator, Ethos has a firm grasp of the importance of looking ahead to anticipate services customers need today and tomorrow. This approach has led them to deploy fiber optic networks within Multi-Dwelling Units (MDU) communities, an approach that is resonating with MDU operators. Recognizing that 3 of the 4 top amenities desired by MDU customers are technology amenities, Ethos has put together a top-rated lineup of video and Internet services, with DIRECTV’s MFH3 IP video service as the linchpin of the system. This enables the residents to get the latest in HD programming, a robust video-on-demand offering, and especially pertinent in Florida, access to DIRECTV’s exclusive coverage of golf and tennis, along with NFL Sunday Ticket. Since the system does not use or cross public rights-of-way, the system enables Ethos to bundle multiple MDU properties using the same core headend equipment to enable larger quantities of scale than would otherwise be available.

The network consists of an MFH3 headend feeding an SFP-based core switch. SFPs are small devices that can either be used with fiber or copper networks. The

core switch feeds distribution switches by a fiber optic connection between buildings. Each distribution switch is then connected to each resident’s apartment by fiber, with a 100 Mb/sec connection to each. A voice-data-video gateway is included at each resident’s apartment, which then feeds a copper-based network within the apartment.

“Being a company with our roots in IP technology rather than RF, the DIRECTV MFH3 system was a natural choice for our networks,” stated Josh Henschell, Managing Director of Ethos Networks. “We can easily add voice, data, and other services as customers demand them. The 100 Mb/second network gives us sufficient capacity for short and longer-term bandwidth needs, and the network is easily upgradeable in the future.”

Finally, with a fiber-based network, Ethos knows that future maintenance costs will be minimal, leading to a long and healthy relationship for residents of the communities.

IP-based Triple Play

MDU


MFH-3 Platform

MFH3 IntroductionAt the heart of IPTV’s benefits is the use of IP technology to offer multiple services via a single platform. DIRECTV has harnessed this power with the introduction of MFH3 (Multi- Family Housing version 3). Not to be confused with traditional IPTV, which uses public or private metropolitan area networks to deliver video services, the DIRECTV MFH3 system uses IP technology as a simple distribution platform to deliver satellite television and other services from a private “on-property” headend facility to each customer dwelling.

It enables the delivery of all DIRECTV satellite TV programming and services, using, in many cases, existing in-building wiring such as Cat 5 or Cat 3 data cables and coaxial cable. Because it is an IP distribution platform, service providers that have won the rights to deliver communications services to MDUs or private planned communities can easily integrate MFH3 with their existing voice and Internet services to deliver triple play services over a single infrastructure. MFH3 supports all DIRECTV programming and services, including the new Ka-band services.

MFH3 SystemThe MFH3 system uses the new “i” series DIRECTV receivers and enhanced software features to enable support for video services delivered using IP technology. At the center of the platform is the MFH3 Gateway technology, which converts DIRECTV signals into industry-standard multi-cast IP video packets, for delivery to MFH3-enabled DIRECTV receivers. The Gateway deploys a feature set that enables efficient and near error-free delivery of DIRECTV programming, with the flexibility to easily upgrade services as new features are deployed. With support for fiber, coaxial and Cat 3/5 cabling the system is compatible with a wide variety of existing buildings and is in line with current new construction practices.

MFH3 makes extensive use of industry-standard equipment for the system’s signal distribution components such as commercial-off-the-shelf (COTS) routers, switches, DSLAM/CPE systems, and remote management gear. The appropriate signal distribution system is determined based on the number of subscribers, existing infrastructure, and other factors that impact the overall system solution.

Other features of MFH3 include: • Integrates with High-Speed Data services, allowing operators to support double and triple-play bundles

• Supports remote management functions using standard SNMP management tools, including software upgrades • Supports a variety of property network wiring topologies including fiber-to-Cat 5e, fiber-to-Coax and VDSL2 • Supports up to 1024 receivers per headend • Supports local program insertion and control of locally encoded analog video sources

MFH3 Platform ServicesDIRECTV MFH3 properties have the added benefit of beingable to remotely monitor the performance of the MFH3network. This allows property owners and system operators to proactively address network issues. All network-managed devices that reside at a property including Gateways, Level 2, and Level 3 Ethernet switches are continuously monitored over a secure VPN connection. As an added benefit, you have the ability to view the current state of all MFH3 systems deployed at your properties from anywhere via the Internet.

DIRECTV HR20i HD DVR

The DIRECTV MFH3 satellite distribution system is a MDUsolution that operators cannot afford to do without. Withseamless integration to existing systems, multiple deployments across a range of wiring topologies, reductions in capital and operating expenditures along with additional revenue opportunities by providing coveted triple-play services to customers, operators need not wait for another system or look any further – MFH3 is a proven success.

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MFH3™ Platform

DIRECTV’s MFH3 system

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AFLtele.com/go/MFH3

High Speed Internet

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Over the past 10 years, the Internet has evolved from an interesting technology with massive potential to becoming an indispensable service that’s viewed by travelers as a utility on par with keeping the lights on or ensuring clean water from the tap.

This has placed many hospitality providers in the unexpected position of serving as network provider and operator. Hotel Information Technology staff now need to become experts in wired and wireless delivery mechanisms, communications media including Category 3/5/and6 copper cables, various grades of coax cables, fiber optics, the wireless bands available for various functions. On top of that, there are different wireless technologies for different functions including Wi-Fi and cellular for both voice and data services.

Finally, providers need to make sure that high margin business travelers receive impeccable data services, while balancing the needs of recreational travelers who may decide to watch a movie on their home DVR over the hotel network.

It’s a set of daunting tasks, but HSIA can be a strategic weapon in keeping customers happy and winning long-term loyalty. This article will lay out some of the challenges and potential rewards when dealing with HSIA services.

InfrastructureThe biggest question is wired versus wireless.

When building out a new property, there’s no question that having at least 2 or 3 Cat5-6 drops to each room is critical for delivery of existing and future services. Coaxial cable is still useful for video delivery, although the long-term trend over the next 10-20 years is clearly towards IP delivery of video services, which is more efficiently delivered over either structured Cat5/6 cabling or fiber optics. There’s a case to be made for including fiber optics to each room to accommodate future services. The price of single-mode fiber, which is the fiber type most commonly used to delivery voice, data and video services by triple-play providers, has dropped dramatically over the past decade, such that a new property or one undergoing extensive renovation should plan to include fibers to each room, even if they’re not immediately lit. The main driver for fiber to the home is bandwidth delivery, mainly to accommodate HDTV and other video-based services.

For existing properties, there’s no question that a wireless service is the most efficient way to deliver a high quality service.

The first generation of services deployed by hotels earlier this decade was often just an extension of home Internet routers, with multiple deployed on a floor to provide coverage. Over time, this method has been proven to have several significant disadvantages, including high up-front capital costs, installation deployment time and disruption to the property, constant maintenance, and the inherent limitation associated with a non-meshed service.

These are now being replaced by newer, more advanced technologies, including wireless Mesh technologies. These technologies were originally developed for widescale deployments in municipalities and other areas, with the ultimate goal of having a subscriber seamlessly transfer internet service from one node

High Speed Internet Access (HSIA) Challenges for Hospitality Providers

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to another, similar to the way that cellular calls are transferred from one cell tower to another. Although it’s still used in those applications, hotels, resorts, and stadiums have also realized that this type of technology has significant advantages over the first generation of services.

These mesh technologies have very powerful receive sensitivity, so they can receive the signals from a typical laptop computer from a farther distance, resulting in fewer nodes to needed to cover a property. Although the nodes themselves are more expensive, there are fewer of them, resulting in both decreased capital and labor costs to deploy. Since fewer nodes are used, less maintenance is needed to keep the network up and running. These nodes are most commonly deployed outside of the property, resulting in much faster and less disruptive installations/maintenance.

An additional advantage of a mesh network is that customers can now maintain connectivity while traveling anywhere in the property, instead of needing to re-associate with a new access point when moving throughout the property. This feature is becoming increasingly important as guests increasingly carry smaller devices that can use Wi-Fi signals, such as Apple’s iPod Touch® device.

Service Management

Finally, in so many properties, although HSIA is viewed as a necessary amenity, property owners have not viewed it as a strategic weapon. However, for the high margin business traveler, a good Internet connection can make the difference between a good and bad business trip. Too many times, the Internet experience is not good and leaves a bad impression on the traveler.

This doesn’t need to be the case. There are several ways that a property can cater to the connected traveler tat enhance value to both the traveler and the property.

At a minimum, a property needs to set up Information Systems technology to managed traffic to ensure a good experience. If the tech-savvy guest in room 206 decides to watch his TV over the hotels’ network or set up a temporary spam server off of his laptop, the guests in other rooms will be the ones to notice by their slow connection.

Relatively inexpensive tools are available that can groom Internet traffic and ensure Quality of Service (QoS) for those guests with legitimate business applications, and manage those high-bandwidth applications, such as video.

If desired, these tools can be connected to the property’s billing system, opening up many new opportunities. First, the property can begin to provide different levels of service, with a basic level of service provided free of charge, ranging in price and capabilities as the expected complexity and bandwidth usage of the application rise. For example, the service can be set to provide a 256K-512K service for typical web-based applications that a leisure traveler may want to use. A next tier could include access to corporate VPNs at a faster speed. An even higher tier can include lightning-fast access to video and other applications. An additional advantage of tiering services is that the revenue gained from the top-tier users can be used to partially or totally offset the cost of the additional bandwidth that they consume. This approach enables the property to meet expectations of the wide range of travelers without breaking the bank to do so. Once the service has value to travelers, the property could choose to provide upgrades to frequent travelers as a valued amenity.

By viewing the technology infrastructure as a important key to a pleasurable stay, the property can use the services to gain customer loyalty and gain positive impressions that will last far beyond the checkout time.

Hospitality

Name of Client:Peabody Hotel Group

Location:Orlando, Florida

Name of Project:Network Infrastructure Expansion

Scope of Project:AFL Enterprise Services worked with Metro Construction to provide network infrastructure for an extensive expansion of the Peabody Hotel consisting of:

• Installation of voice, video and data • Installation of more than 1 million feet of Cat5e and Cat6 cable • Cabling for CCTV and CATV • Fiber backbone consisting of AFL fiber connectors

Schedule:February 2009 – November 2010

Completion Date:November 2010

When it comes to traveling destinations in the United States, Disney World, Sea World, and Universal Studios can be considered a tourist vacuum. As one of

the most frequently visited destination spots in the world, Orlando is not only limited to vacation seeking families, but businesses as well. Orlando is a city with a booming conference and convention scene. The weather makes it ideal for company retreats and seminars. Given the high rate of traffic, Orlando also has the reputation for the best hotels in the country. At the top of the list is the Peabody Hotel, one of the most luxurious sites in the city. Priding itself on catering to the meetings and conventions industry nationwide, the Peabody Hotel has established itself as the Orlando convention hotel of choice for the nation’s professional meeting planners.

According to a recent survey, the most important amenity for a hotel guest is Wi-Fi or tiered Internet connectivity. This is what the Peabody Hotel had in mind when it began its hotel expansion earlier this year. Peabody hired Metro Construction, a general commercial contractor headquartered in Memphis, to construct a $450 million expansion of the hotel, as well as AFL Network Services, a highly regarded company in the telecommunications industry, to install a superior network infrastructure.

Providing a network infrastructure for this new expansion is no easy task. With a target completion date of November 2010, the expansion includes a 34-story guest room tower with 1,641 luxurious rooms, all of which require Wi-Fi connectivity; three new pools, each with poolside cabanas capable of high-speed Internet access; expansion of the hotel’s meeting and convention area, both areas need to have Internet access for visiting guests as well as an infrastructure that can monitor billing and guest Internet access.

In order to provide a voice infrastructure, AFL will install nearly one million feet of Cat5e cabling. This cabling is intended for high-speed data applications, providing basic voice service for the rooms. RG-6 cable will also be installed for the transmitting of cable television. About a million feet of Cat6 cable with connectivity will also be installed to allow for a high-speed data infrastructure, helping facilitate records, billing, and information that the hotel will store in its computers. The entire fiber backbone will consist of AFL fiber and connectors.

It’s only fitting that the best network infrastructure is in the best hotel of one of the most visited cities. As work continues on the expansion, AFL Network Services has proven that it can handle jobs of extreme magnitude.

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Peabody Hotel Case Study

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