fiber optics
Fiber Build-Out Boom Update: GTT & Ziply Fiber, Infinera in Louisiana, Bluebird Network in Illinois
This week GTT Communications, Infinera, and Bluebird Network all announced network expansions within the U.S. The various announcements follow AT&T’s deal last month with venture capital firm BlackRock to deploy a multi-gigabit fiber network to 1.5 million customer locations using a commercial open access platform.
GTT Communications, Inc., a leading global provider of managed network and security services to multinational organizations, has announced that it has expanded its partnership with Ziply Fiber, a provider of fiber networks purpose-built for the internet, to establish a new network Point of Presence (PoP) to serve the fast-growing data center market in Portland, Oregon. The two companies linked in hopes to “serve the fast-growing data center market” in the city, according to the announcement.
The new PoP is providing an initial 400G of capacity to customers in the U.S. Pacific Northwest region and will expand the power of GTT’s global Tier 1 IP network by offering an additional option for customers to connect in 11 major data centers and the Hillsboro subsea cable landing station, expanding the reach of GTT via Ziply Fiber’s high-count Silicon Forest fiber cross connection service.
“We are pleased to expand our partnership with GTT to establish a new network PoP in Portland to help customers in the region and beyond to connect to area data centers as well as other geographies,” said Mike Daniel, vice president of Enterprise Sales at Ziply Fiber. “Our regional fiber network, combined with GTT’s global Tier 1 network and suite of leading managed networking and security services, will give enterprises new options to improve connectivity securely and reliably.”
GTT’s global Tier 1 IP backbone is ranked among the largest in the industry1 and connects more than 260 cities on six continents. With the addition of the new Portland PoP, GTT customers in the region can benefit from the improved connectivity, security and scalability available through GTT’s suite of managed connectivity services.
Ziply Fiber’s network was architected to meet today’s increasing digital demands and was engineered to be fully redundant, with a dual infrastructure that maintains customer connections even when issues arise. Ziply Fiber maintains a four-state footprint in Washington, Oregon, Idaho and Montana and has built redundancies into its network to avoid service interruptions, while updating routing to steer clear of congestion across the broader internet. This ensures content is accessible directly on the fiber backbone and can be accessed more quickly.
“This new PoP deployment creates an exciting opportunity to use the Ziply Fiber network to allow our regional data center customers to easily connect to and take advantage of GTT’s global Tier 1 IP network and our full suite of managed services offerings,” said Jim Delis, president, Americas Division, GTT. “Our work with Ziply Fiber demonstrates GTT’s continued focus on investment to expand the reach of our network for customers with locations in the Pacific Northwest.”
GTT will offer additional customer options to connect in 11 data centers and the Hillsboro subsea cable landing station. Jim Delis, president for GTT’s Americas Division, stated the PoP deployment will enable the network provider’s data center customers to link into its tier-one IP network.
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Infinera announced today that the Louisiana Board of Regents, acting on behalf of the statewide Louisiana Optical Network Infrastructure (LONI) and the Board of Supervisors of Louisiana State University (LSU) and Agricultural and Mechanical College, has selected and deployed Infinera’s advanced coherent optical networking solutions to upgrade LONI. Also announced today is the initial deployment of four 400G optical channels along a 220-mile intrastate route in Louisiana.
LONI connects 38 university campuses and data centers and provides connectivity to additional research and education networks in other states. The solution, which increases LONI’s network capacity by a factor of 10, comprises Infinera’s XTM Series open line system and GX Series transponders. The upgraded network expands the ability for the research and education community to share and access information, resources, and remote instruments in real time.
LONI promotes scientific computing and technology across Louisiana and is the backbone infrastructure to the state’s heroic research efforts. These efforts are made possible by utilizing cutting-edge technology to push the limits of scientific discovery at leading university campuses and achievable with LONI’s high-bandwidth optical network. Infinera’s XTM Series line system coupled with GX Series high-performance transponders equips LONI with a 200G/400G/600G solution that offers unmatched high-bandwidth services to its customers today and is scalable to 800G in the future. Infinera’s combined solution delivers superior performance, increasing LONI’s service offering with more bandwidth, greater flexibility, and faster data transfer capabilities.
“A high-capacity state-of-the-art network is critical to enabling breakthrough discoveries that can only be achieved through multi-site collaboration and cloud connectivity,” said Lonnie Leger, LONI’s Executive Director. “We are committed to offering our members up to 100G and deploying Infinera’s innovative solutions, which exceeded both our expectations and commitment, enabling us to exceed what other state universities can offer.”
“LONI operates with a small staff, which requires a highly automated network and cost-effective solution that enables them to meet their bandwidth growth requirements,” said Nick Walden, Senior Vice President, Worldwide Sales, Infinera. “The Infinera team worked closely with LONI to deliver a solution that met their needs now and positions them to meet future bandwidth needs with minimal maintenance and manpower to operate.”
“As bandwidth continues its relentless growth driven by new high-speed applications such as 5G, [augmented reality], [virtual reality], and cloud services, legacy copper-based networks – such as DSL and cable – are simply not capable [of] meeting the bandwidth requirements,” Robert Shore, SVP of marketing at Infinera, told SDxCentral.
Shore added that the current fiber boom “reinforces Infinera’s focus on continuing to innovate and manufacture optical transport solutions that can help network operators effectively leverage their fiber deployments from the core of their network all the way to the very edge.”
Infinera also announced that its ICE6 solution was deployed along the trans-Pacific Unity Submarine Cable System connecting Japan and the U.S., doubling the capacity of that connection.
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Bluebird Network completed a 126-mile fiber buildout in Illinois. The route connects the towns of Aurora, Dixon, DeKalb, Sterling, and Rock Falls to Bluebird’s network and services, and provides a “diverse route” to Chicago, the company stated.
Bluebird’s management noted the deployment builds on its recently acquired middle-mile fiber network assets from Missouri Telecom, and expansion into Salina, Kansas, and Waterloo, Iowa.
“Bluebird has no plans to slow down its fiber expansions any time soon,” Bluebird Network President and CEO Michael Morey stated in the release tied to its Kansas and Iowa expansion. “To foster even more growth and strengthen connectivity for businesses in the Midwest, we have builds underway for additional expansions coming online this summer.”
Those moves come on the heels of the AT&T/BlackRock JV that is looking to deploy fiber to more than 30 million locations within AT&T’s 21-state wireline footprint by the end of 2025, and positions the newly created Gigapower entity to boost its reach outside of those initial 21 states.
The deal also prompted a predication from Analysys Mason, saying the move further indicates “that the [U.S.] wireline market is entering a period of profound transformation that will leave it more aligned with the market structures seen in Europe.”
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References:
https://www.sdxcentral.com/articles/news/us-fiber-build-booms/2023/01/
AT&T and BlackRock’s Gigapower fiber JV may alter the U.S. broadband landscape
AT&T and BlackRock’s Gigapower fiber JV may alter the U.S. broadband landscape
AT&T and a unit of investment titan BlackRock will form a joint venture to operate a commercial fiber-optic platform, with AT&T as its first wholesale tenant. The objective is to further propel AT&T’s fiber ambitions outside of the carrier’s traditional 21-state wireline footprint and move on AT&T’s long-simmering fiber expansion plans. The newly formed joint venture (JV) — Gigapower, LLC — expects to provide a best-in-class fiber network to internet service providers (ISPs) and other businesses across the United States.
The Gigapower joint venture will operate the commercial fiber service. That service – not to be confused with AT&T’s previous “GigaPower” broadband offering – will be targeted at internet service providers (ISPs) and enterprises.
BlackRock’s work in the venture will be through its Alternatives division and through a fund managed by its Diversified Infrastructure business. That business recently raised $4.5 billion in initial investor commitments. AT&T executive veteran Bill Hogg was named CEO of Gigapower.
The JV’s initial plans are to deploy a multi-gigabit fiber network to 1.5 million customer locations using a commercial open access platform. This will be incremental to AT&T’s own fiber deployment plans targeted at reaching more than 30 million locations within its 21-state wireline footprint by the end of 2025. The JV will tap into AT&T’s nationwide 5G wireless service to support sales outside of its traditional wireline footprint. This will allow it to take advantage of AT&T’s already established enterprise arrangements and more quickly get a sales channel up and running.
“Now more than ever, people are recognizing that connecting changes everything,” said John Stankey, CEO of AT&T. “With this joint venture, more customers and communities outside of our traditional service areas will receive the social and economic benefits of the world’s most durable and capable technology to access all the internet has to offer.”
“We are excited to form the Gigapower joint venture in partnership with AT&T, which will be serving as not only a joint owner but also the first wholesale tenant. We believe Gigapower’s fiber infrastructure designed as a commercial open access platform will more efficiently connect communities across the United States with critical broadband services,” said Mark Florian, Global Head of Diversified Infrastructure, BlackRock. “We look forward to partnering with Gigapower’s highly experienced management team to support the company’s fiber deployment plans and shared infrastructure business model.”
Gigapower plans to deploy a reliable, multi-gig fiber network to an initial 1.5 million customer locations across the nation using a commercial open access platform. The Gigapower fiber deployment will be incremental to AT&T’s existing target of 30 million-plus fiber locations, including business locations, by the end of 2025. Combined with existing efforts within AT&T’s 21-state footprint, this capital efficient network deployment will advance efforts to bridge the digital divide, ultimately helping to provide the fast and highly secure internet people need. This network expansion will also help spur local economies in each of the communities in which Gigapower operates.
“Fiber is the lifeblood of digital commerce,” said Bill Hogg, CEO of Gigapower. “We have a proven team of professionals building this scalable, commercial open access wireline fiber network. Our goal is to help local service providers provide fiber connectivity, create the communications infrastructure needed to power the next generation of services and bring multi-gig capabilities to help close the gap for those who currently are without multi-gig service.”
Tammy Parker, Principal Analyst at GlobalData, a leading data and analytics company, wrote:
“AT&T is pursuing a shrewd path to extend its fiber footprint nationwide without assuming all the risk by itself. Although the new Gigapower platform will be operated as a joint venture with BlackRock, offering commercial open access to not only AT&T but also other internet service providers and businesses, the carrier’s influence features prominently: the moniker ‘GigaPower’ was formerly applied to AT&T’s fiber-based service, which was renamed ‘AT&T Fiber’ in October 2016.
“The Gigapower platform will serve customers outside of AT&T’s traditional 21-state wireline footprint, and as the platform’s first wholesale tenant AT&T will be able to sell fiber service in more wireline markets, complement its nationwide mobile service footprint, and enable the carrier to market fixed-mobile service bundles in those markets. Over time, AT&T should be able to leverage this dual-technology capability to not only attract new customers and revenue streams, but also increase customer retention as subscribers who take multiple services from a carrier tend to be ‘stickier’ and less likely to stray to a rival service provider.
“The AT&T and BlackRock JV poses a competitive challenge to cable providers and regional fiber providers, whose broadband reaches are geographically restricted, though those carriers could possibly become tenants on the open access Gigapower platform to extend their own footprints.
“Gigapower will also help AT&T extend its fiber offerings to compete against the highly successful fixed wireless access (FWA) services being marketed by rivals T-Mobile US and Verizon to residential and business broadband customers both inside and outside of AT&T’s existing wireline service area. However, unlike FWA services, which can ride on top of existing mobile network coverage and are often self-installable, fiber requires the deployment of new infrastructure and truck rolls to the premises to be served, impacting time to market for AT&T and BlackRock’s ambitious plan. Additionally, Gigapower’s initial footprint will cover only 1.5 million customer locations, and it is unclear what the deployment timeline will be.
“After largely extracting itself from its previous foray into entertainment, AT&T continues doubling down on its broadband focus, committing to both 5G and fiber nationwide. AT&T’s JV with BlackRock has the potential to alter the broadband landscape, not only by enabling AT&T to market fiber in more markets but also by providing a platform for public-private broadband partnerships between Gigapower and local municipalities. However, it will take time to see results from this long-term play.”
References:
https://www.sdxcentral.com/articles/analysis/att-bags-blackrock-for-gigapower-fiber-jv/2022/12/
RVA LLC: Fiber Deployment in U.S. Reaches Highest Level Ever; Google Fiber Returns
Fiber facility service providers passed 7.9 million additional homes in the U.S. in 2022—the highest annual deployment ever, even with challenges in materials supply chain and labor availability, according to a fiber deployment report from the Fiber Broadband Association.
The 2022 Fiber Provider Survey was based on research conducted by RVA LLC Market Research & Consulting (RVA). Their researchers found that there are now a total of 68 million fiber broadband passings in the U.S., with strong recent increases of 13% over the past 12 months and 27% over the past two years. The survey also found that 63 million unique homes have now been passed (this figure “excludes homes with two or more fiber passings”). To date, fiber has passed nearly half of primary homes and over 10% of second homes. The annual fiber deployment rate is likely to be even higher over the next five years as BEAD and other broadband funding programs kick in.
In its research, RVA notes that although deployment expectations from individual companies are in constant flux based on many factors, many service providers have announced network builds exceeding the fiber footprint they have built through private funding. Canada is seeing strong fiber deployment as well, with about 66% of homes passed.
“High-quality broadband has become more important to consumers every year. Fiber broadband exceeds all other types of delivery in every single measurement of broadband quality, including speeds, uptime, latency, jitter, and power consumption,” Gary Bolton, Fiber Broadband Association president and CEO, said in a prepared statement. “For the consumer this has real-world impacts, like more productivity, better access to health care and education, more entrepreneurism, and the option of more rural living. For society, this means more sustainability and, ultimately, digital equity.”
Mike Render, Founder and CEO of RVA, will present the findings of the 2022 Fiber Provider Survey on Fiber for Breakfast, Wednesday, December 28, 2022, at 10:00am ET. Click here to register for the episode.
About the Fiber Broadband Association (FBA):
The Fiber Broadband Association is the largest and only trade association that represents the complete fiber ecosystem of service providers, manufacturers, industry experts, and deployment specialists dedicated to the advancement of fiber broadband deployment and the pursuit of a world where communications are limitless, advancing quality of life and digital equity anywhere and everywhere. The Fiber Broadband Association helps providers, communities, and policy makers make informed decisions about how, where, and why to build better fiber broadband networks. Since 2001, these companies, organizations, and members have worked with communities and consumers in mind to build the critical infrastructure that provides the economic and societal benefits that only fiber can deliver. The Fiber Broadband Association is part of the Fibre Council Global Alliance, which is a platform of six global FTTH Councils in North America, LATAM, Europe, MEA, APAC, and South Africa. Learn more at fiberbroadband.org.
The Fiber Broadband Association is also helping with the expansion by helping to train installers through its Optical Telecom Installation Certification (OpTIC) Path program.
Press Contact:
Ashley Schulte
Connect2 Communications for the Fiber Broadband Association
[email protected]
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Separately, Light Reading says that Webpass to play role in Google Fiber’s new expansion efforts. “As we continue to grow our footprint across the country, we’re integrating this [wireless] method for delivering high-speed service in more areas where it makes sense in all our existing cities and in our new expansion areas as well,” Tom Brownlow, senior network operations manager at Google Fiber, and Blake Drager, the head of technology at Google Fiber’s Webpass business, wrote in a post to the company’s website.
Google Fiber recently announced talks were underway with city leaders in five states – Arizona, Colorado, Nebraska, Nevada and Idaho – about expanding fiber services to various communities. Cities to make Google Fiber’s new-build list recently include Omaha, Nebraska, Mesa, Arizona and Lakewood, Colorado. Brownlow and Drager didn’t specify which of those expansion markets might include wireless offerings.
References:
Comcast demos 10Gb/sec full duplex with DOCSIS 4.0; TDS deploys symmetrical 8Gb/sec service
Comcast announced in a press release it successfully tested a symmetrical multi-gigabit DOCSIS 4.0 connection on its live network, taking a major step toward “offering 10G-enabled services” in the second half of 2023. In Philadelphia, where Comcast is headquartered, it connected service at an undisclosed business location using multiple cable modems and a DOCSIS 4.0-enabled 10G node. If you’re wondering what 10G means, the answer is — more than 5G. As we noted in 2019, the cable industry rolled out its marketing term just in time to have something that’s twice as many Gb/sec as 5G wireless has.
DOCSIS 4.0 technology should enable download speeds of up to 10Gbps with 6Gbps uploads, and Comcast said a lab test in January achieved more than 4Gbps speed in both directions.
Earlier this year, Comcast announced it was working on rolling out multi-gig Internet speeds to more than 50 million residences and businesses in the U.S. by the end of 2025. The company planned on deploying 2Gbps speeds to 34 cities by the end of this month and has also given a slight bump to download speed on internet service in many areas.
The advantage of 10G tech is that it should make multi-gig speeds available for both downloads and uploads (currently, Comcast’s gigabit plans include upload speeds of just 200Mbps), just as it is with fiber optic internet connections. However, for anyone considering upgrading, we should note that you will probably need another new cable modem.
Ideally, this will increase speeds for those in places where fiber isn’t available, especially non-metropolitan areas. And in places that have competition, it measures closer against rivals that deliver fiber services, such as Verizon, AT&T, Google, and Frontier Communications, which are already offering some customers symmetrical multi-gigabit connections.
“We started this year with the announcement of our world-first test of 10G modem technology capable of delivering multi-gig speeds to homes and, as of today, 10G is a reality with the potential to transform and evolve the Internet as we know it,” said Elad Nafshi, EVP and Chief Network Officer at Comcast Cable. “It’s been an incredible year of progress, and we look forward to continuing to refine and harden our 10G technology as we work to make this service—and all its incredible benefits—available to all customers in the years ahead.”
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Separately, TDS Telecom [1.] said its new symmetrical 8Gb/sec (gig) service is already available in more than 75 of its fiber markets and runs $295 per month. While most U.S. operators [2.] are sticking with 2-gig as their top tier product for now, a handful of others have already pushed further into multi-gig territory. AT&T and Ziply Fiber, for instance, both offer residential plans providing up to 5 Gbps. And fewer still have gone beyond that. Lumen Technologies introduced an 8-gig tier for its Quantum Fiber service in August and Google Fiber has announced plans to trot out 5-gig and 8-gig plans in early 2023. Lumen’s service costs $300 per month.
Note 1. TDS Telecom offers internet service across 31 states with the greatest coverage in Wisconsin, Tennessee, and Utah.
Note 2. TDS is competing directly against AT&T, Comcast, Consolidated Communications and Lumen in the territory it serves.
While TDS in a press release pitched the 8-gig product as suitable for power users such as gamers and content creators, an operator representative told Fierce Telecom it doesn’t initially expect significant uptake of the plan. Instead, such offerings are tools in a marketing war being waged across the broadband industry.
Wire 3 offers a 10-gig service to customers in Florida, and Tennessee’s EPB and also provides a 25-gig service. However, it is not likely that consumers need those kinds of speeds currently.
On TDS’s Q3 2022 earnings call, TDS CFO Michelle Brukwicki stated its 1-gig and 2-gig plans are “important tools that will allow us to defend and win new customers.” She added nearly a quarter of new customers are taking its 1-gig service where it is available and its faster, higher-APRU tiers helped it boost residential broadband revenue in the quarter. However, TDS expects to miss 2022 fiber build target.
References:
https://corporate.comcast.com/press/releases/comcast-live-10g-connection-4-gig-symmetrical-speeds
https://www.theverge.com/2022/12/12/23505779/comcast-multi-gigabit-10g-docsis-40-cable-fiber-isp
https://www.fiercetelecom.com/broadband/tds-cranks-fiber-speeds-8-gbps
U.S. cable commercial revenue to grow 6% in 2022; Comcast Optical Network Architecture; HFC vs Fiber
U.S. cable multi-service operators (MSO’s) now generate more than $20 billion a year in business services revenues as the sector has emerged as one of the most profitable for the industry. However, cablecos face major challenges in maintaining their growth pace because of the economic meltdown wrought by COVID-19 and the emergence of new all-fiber and wireless competitors.
Cable business service revenues and customer growth each slowed during the first two years of the COVID-19 pandemic, but they are clearly increasing again at the end of 2022.
U.S. cablecos commercial revenue growth is set to hit 6% in 2022, up from just 2% in 2020 and 3% in 2021, Alan Breznick, cable/video practice leader at Light Reading and a Heavy Reading analyst said in opening remarks at Light Reading’s 16th-annual CABLE NEXT-GEN BUSINESS SERVICES DIGITAL SYMPOSIUM, which focused on cable business services. [The source of that data is CMG/S&P.]
“There are signs of things pointing up again for the [cable] industry,” Breznick told the virtual audience.
U.S. cable is expected to bring in $20.5 billion in total commercial services revenues in 2022. Broken down by segment, small businesses (up to 19 employees), at $14.6 billion, will continue to represent the lion’s share, followed by medium businesses (20-99 employees), at $3.3 billion, and large businesses (100-plus employees), at $2.6 billion.
Commercial customer growth is estimated to reach 5% in 2022, down slightly from 2021 levels, but almost doubling the growth rate seen in 2020, when businesses across the country were hit by pandemic-driven shutdowns and lockdowns. Breznick estimates that US cable has about 5.5 million commercial customers.
Christopher Boone, senior VP of business services and emerging markets at Cable One, acknowledged that the commercial services market is returning to a faster rate of growth. However, businesses – and smaller businesses, particularly – are feeling labor and inflationary pressure as things continue to open up.
“Everything is expensive, including labor, and it’s hard to find [workers],” Boone explained. “For the small business owner, I think it’s pretty tough right now.”
During the earlier phases of the pandemic, Boone said Cable One didn’t emphasize new work-from-home products but instead focused on the broader customer experience. For example, Cable One put some customers on a seasonable pause for the first time, forgave early termination fees, issued credits and, where appropriate, helped customers move to lower-level services.
“We really threw the rulebook out and just said, do what it takes to take care of the customers,” he said. Even if some small businesses fail, the hope is that those entrepreneurs will return and choose Cable One again, remembering that the company did right by them when times were tough. Moving forward, he said Cable One will stick to its knitting and focus on connectivity rather than look to expand its product line for the business segment.
“I think our product menu needs to look like In-N-Out and not The Cheesecake Factory,” Boone said, noting that Cable One has opted to sit on the sidelines with product categories such as SD-WAN. “We’re pretty cautious in terms of new product launches … We feel that connectivity is really our sweet spot.”
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Comcast Business now serves, small, mid-range and enterprise-level customers with a variety of services including Metro Ethernet, wavelength services and Direct Internet Access. An important piece of the firm’s broader strategy revolves around a “unified optical network architecture” initiative that enables the MSO to serve a broad range of customer types, including those requiring that services are delivered to multiple locations in multiple markets.
Comcast’s unified optical architecture combines the access and metro optical networks using a set of items: network terminating equipment (NTE), a Wave Integration Shelf (WIS) and OTN (Optical Transport Network – ITU standard) “tails.”
The NTE is a small, optical shelf that today supports 10-Gig and 100-Gig up to a 400-Gig wavelength, and can reside at a single customer site or a data center. The WIS resides in the Comcast headend or hub, co-located with the metro optical line system, and serves as the demarcation point for commercial services. The OTN Tails are the key to connecting the access network to the metro network.
“We needed a way to provide commercial services to customers that were located in the access [network], but needed to reach the metro network to get to one of our routers for Internet access or possibly another segment of the access to connect their locations together,” Stephen Ruppa, senior principal engineer, optical architecture for Comcast’s TPX (technology, product and experience) unit, said this week during his keynote presentation.
The combining/meshing of the access and metro networks enables features such as remote management, performance monitoring data, alarming and a full “end-to-end circuit view,” including the customer sites themselves. “We use the same hardware, standards, configurations, designs, procurement, processes … in all the networks, regardless of the vendor,” Ruppa said.
And while there was once little need to connect two non-Comcast sites that resided in different areas or to provide connections greater than 10 Gbit/s, customer demands have changed. Ruppa said two products drove that demand and the desire to create the company’s unified optical architecture: wavelength services and high-bandwidth Metro Ethernet.
A modular, simplified, commoditized and easily repeatable architecture enables Comcast Business to “easily offer the next gen of 400-Gig wavelengths and Ethernet services with a very light lift,” he added.
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Ed Harstead, Lead Technology Strategist, Chief Technology Office, Fixed Networks, Nokia presented the final keynote.
The panel session “Fighting Fiber with Fiber” was moderated by Breznick with panelists:
- Christian Nascimento, VP, Product Management & Strategy, Comcast Business
- Brian Rose, Assistant VP, Product Internet, Networking & Carrier Services. Cox Communications
- Steve Begg, VP/GM, Business Services, Armstrong Business Solutions
- Mark Chinn, Partner, CMG Partners
- Ed Harstead, Lead Technology Strategist, Chief Technology Office, Fixed Networks, Nokia
Decades old hybrid fiber-coax networks (HFC) drive fiber to the node outside of the premises, which is then hooked up using older cable (coaxial) technology. However, due to advances in cable technology such as the latest DOCSIS 4.0 technology, the cable industry has touted its newly developed technological capacity to support multi-gig symmetrical speeds over those hybrid networks. DOCSIS 4.0 currently supports speeds of up to 10 Gigabits (Gbps) per second download and 6 Gbps upload – its predecessor, DOCSIS 3.1, offered only 5 Gbps * 1.5 Gbps.
Christian Nascimento of Comcast stated that hybrid networks that deliver multi-gigabit speeds are “adequate” for smaller enterprises. “This is matter of matching the technology up with…the customer’s needs,” he said, adding that Comcast delivers these services in a “cost-effective way.”
For Cox Communications, the hybrid model is “an ‘and,’ not an ‘or,’” said Brian Rose, the assistant vice president of product internet for the cable company. While Cox may invest more heavily in fiber networks going forward, Rose said it will continue to invest in its cable networks as well. Rose said he welcomes market challenges from insurgent fiber deployers. “Competition is good for customers and the industry overall,” he said. “It pushes people to be better and to push the envelope.”
The panel wasn’t unanimously bullish on older cable technology, however. Ed Harstead of Nokia argued that a widespread transition to fiber is inevitable. “I don’t doubt that mom-and-pop businesses will be perfectly fine on [cable]. But to the extent that you need higher speeds and symmetrical speeds…it’s going to be fiber.”
The cable broadband industry faces an onslaught of criticism from fiber advocates. Organizations like the Fiber Broadband Association say their preferred technology performs better, last longer, and costs less in the long term than the competition. FBA President Gary Bolton has strongly opposed government support for all manner of non-fiber technology, including satellite and wireless.
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References:
https://www.lightreading.com/cable-tech/cable-business-services-bounce-back/d/d-id/782175
Cable Providers Back Hybrid Fiber-Coax Networks in Face of Pure Fiber
MoffettNathanson: Fiber Bubble May Pop; AT&T is by far the largest (fiber) overbuilder in U.S.
Fiber network build-outs are still going strong, even as the pace of those builds slowed a bit in 2022. Our colleague Craig Moffett warns that the fiber future isn’t looking quite as bright due to an emerging set of economic challenges that could reduce the overall rate of return on those build-outs. Rising costs, reflecting labor cost inflation, equipment cost inflation, and higher cost of capital, all point to diminished investment returns for fiber overbuilds. Craig wrote in a note to clients:
Our by-now familiar tally of planned competitive fiber builds for 2022 started the year at to 6M or so homes passed. By early Spring it had climbed to 7M. It currently sits at ~8M. Next year’s number is flirting with 10M. All for an industry that has never built even half that many in a single year. As we approach the end of the year, however, it is clear that the actual number, at least for this year, will fall short. The number is still high, to be sure… but lower.
There does not appear to be a single explanation for the construction shortfall; some operators blame labor supply, some permitting delays. And some, of course, are actually doing just fine. For the industry as a whole, however, notably including AT&T, by far the nation’s largest (fiber) overbuilder, the number will almost certainly end the year meaningfully below plan. Costs appear to be rising, as well. Here again, there is no single explanation. Labor costs are frequently cited, but equipment costs are rising as well. For example, despite construction shortfalls, AT&T’s capital spending show no such shortfall, suggesting higher cost per home passed. Higher cost per home passed, coupled with a higher cost of capital, portend lower returns on invested capital.
If, as we expect, investment returns for fiber overbuilds increasingly prove to be inadequate, the capital markets will eventually withdraw funding. Indeed, this is how all bubbles ultimately pop. There are already signs of growing hesitancy. To be sure, we don’t expect a near-term curtailment; operators’ plans for the next year or two are largely locked in. Our skepticism is instead about longer-term projections that call for as much as 70% of the country to be overbuilt by fiber. We believe those kinds of forecasts are badly overstated.
As recent as its Q3 2022 earnings call, AT&T has reiterated that it’s on track to expand its fiber footprint to more than 30 million locations by 2025. The company deployed fiber to about 2.3 million locations through the third quarter of this year, but appears hard-pressed to meet its guidance to build 3.5 million to 4 million fiber locations per year.
Given that the fourth quarter is typically a slow construction period, AT&T “looks to be well behind its deployment goals,” Moffett wrote. “If the company retains the pace of deployment in Q3, they will end the year 675K homes short of their goal, or an 18% shortfall compared to the midpoint of their target.”
But AT&T isn’t alone. Lumen has also fallen behind its target, as has TDS and altafiber (formerly Cincinnati Bell) and Altice USA. Those on track or ahead of pace include Frontier Communications, Consolidated Communications and Verizon.
The analysts at Wells Fargo recently lowered their fiber buildout forecasts for 2022 and 2023. They cut their 2022 forecast for the US to about 8 million new fiber locations, down from 9 million. For 2023, they expect the industry to build about 10 million locations, cut from a previous expectation of 11 million.
Though overall buildout figures are still relatively high, some operators recently have blamed a blend of reasons for the recent slowdown in pace, including a challenging labor supply, permitting delays and rising costs for capital and equipment.
“Labor costs are frequently cited, but equipment costs are rising as well,” Moffett noted. “For example, despite construction shortfalls, AT&T’s capital spending show no such shortfall, suggesting higher cost per home passed.”
And, like the pace of buildouts, the cost situation is clearly not the same for all operators. While Consolidated is seeing the cost per home passed rising to a range of $600 to $650 (up from $550 to $600), Frontier expects its costs to remain at the expected range of $900 to $1,000.
But more generally, Moffett believes the returns on those investments “will only weaken further as buildouts are necessarily pushed out to less attractive, lower density, markets.”
One takeaway from that, Craig warns, is that fiber overbuilding is poised not only to generate lower returns that originally hoped, but that there also will be upward, not downward, pressure on broadband prices.
With respect to the pace of fiber build-outs, there’s heavy demand for labor for today’s overbuilding plans, and it will only get heavier as the $42.5 billion Broadband Equity, Access and Deployment (BEAD) program gets started.
Remedies are out there, with Moffett pointing to the Fiber Broadband Association’s rollout of its OpTICs Path fiber technician training program earlier this year as one example. ATX Networks, a network tech supplier, is contributing with the recent launch of a Field Personnel Replenishment Program.
But they might not completely bridge the gap. “These efforts may help expand capacity, but they are unlikely to fully meet demand, and they are almost certainly not going to forestall near-term labor cost inflation, in our view,” Moffett wrote.
With rising equipment costs and the cost of capital also factoring in, Moffett views a 20% rise in fiber deployment (for both passing and connecting homes) a “reasonable range” in the coming two to three years.
Moffett wonders if network operators will be forced to raise prices to help restore returns to the levels anticipated when fiber buildout plans were first conceived. While it’s unclear if competitive dynamics will allow for that, “it does appear to us that expectations of falling ARPU [average revenue per user] are misplaced,” Craig wrote.
But the mix of higher cost of capital and deployment for fiber projects, paired with deployment in lower density markets or those with more buried infrastructure, stand to reduce the value of such fiber projects further.
“Capital markets will sniff out this dynamic long before the companies themselves do, and they will withdraw capital. This is, of course, how bubbles are popped,” Moffett warned.
The MoffettNathanson’s report also provided an update on broadband subscriber metrics. US cable turned in a modest gain of 38,000 broadband subs in Q3 2022, an improvement from cable’s first-ever negative result in Q2. Cable saw broadband subscriber growth of 1.2% in Q3, down from +4.4% in the year-ago quarter. U.S. telcos saw broadband subscriber growth fall to -0.5% in Q3, versus +.06% in the year-ago quarter.
Meanwhile, fixed wireless additions set a new record thanks to continued growth at both Verizon and T-Mobile. However, T-Mobile’s 5G Home business posted 578,000 FWA subscriber adds in Q3, up just 3.2% from the prior quarter.
References:
Clearwave Fiber Expands Fiber Buildout in Savannah, Hinesville and Richmond Hill, GA
Clearwave Fiber [1.] continues its construction of a state-of-the art, all-Fiber Internet network in the “Coastal Empire.” This latest expansion for the Savannah-based operation marks a continuation of almost 6,000 route miles of Fiber in the Southeast and Midwest. The company’s goal is to bring the most advanced and fastest Internet available to more than 500,000 homes and businesses across the United States by the end of 2026.
Note 1. Clearwave Fiber was formed in January of 2022 as a rebranding of Hargray Fiber, which has been serving the Southeast for 70+ years. Senior leadership and operations management have a long history with Hargray and now lead Clearwave Fiber during this rapid expansion.
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“Clearwave Fiber is excited to contribute to the continual growth in Southeast Georgia and provide such a crucial resource to residents and commercial operations,” said Clearwave Fiber General Manager John Robertson. “We’re committed to providing communities with the high-speed connectivity that is essential for families, businesses and local economies.”
“We’re ingrained in the fabric of Savannah and its surrounding communities,” said Clearwave Fiber Chief Operating Officer Gwynne Lastinger. “Our sales and technical support staff live and work in the Coastal Empire and we continue to add to our team of more than 500 throughout the Southeast and Midwest.”
With gigabit download and upload speeds, Clearwave Fiber will bring 10 times more speed to consumer doorsteps at a time when fast, reliable Internet is becoming increasingly critical to modern households and businesses. Remote work, streaming, gaming, smart home technology and multiple device connectivity all require robust, reliable connections. Clearwave Fiber is committed to providing hassle-free, high-quality Fiber data connection to every location of its growing footprint.
“We’re seeing an increase in households where multiple online activities are occurring at the same time. Many Internet connections aren’t up to the task of keeping it all running at top speeds,” said Robertson. “Clearwave Fiber solves the problem of the bandwidth issues that happen when everyone in the house is connected. We also have solutions for businesses that keep them operating on a fast, reliable network.”
For many consumers, Internet touches every facet of daily life. Remote work, telehealth, and virtual learning all require robust, reliable connections. A 2022 study by Deloitte indicated that 45 percent of surveyed households include one or more remote workers, and 23 percent include at least one or more household member attending school from home. Additionally, 49 percent of U.S. adults had virtual medical appointments in the past year.
In addition, the Deloitte report noted that the average U.S. household now utilizes a total of 22 connected devices, including laptops, tablets, smartphones, smart TVs, game consoles, home concierge systems like Amazon Echo and Google Nest, fitness trackers, camera and security systems, and smart home devices such as connected exercise machines and thermostats.
Supporting this burgeoning ecosystem of household devices can challenge companies serving customers over DSL or cable systems. “Older copper wire and coaxial networks worked just fine for the technologies they were built for. Copper lines are great for telephone calls and coax worked well for cable TV, but those networks struggle to deliver the kind of bandwidth possible with fiber,” noted Lastinger. “Fiber optic technology is the future. Fiber networks are more durable, more consistent, and they move data at the speed of light. Best of all, our network easily keeps pace with technology innovations, exponentially increasing demands for bandwidth, and evolving customer needs. The options are almost limitless.”
Fiber networks are currently being installed on Wilmington and Whitemarsh Islands, Windsor Forest, Hinesville, Rincon, Pooler and Richmond Hill. Clearwave Fiber is scheduled to complete these projects by the end of November and will continue working in other areas in the region into 2023 and beyond.
For more information, visit ClearwaveFiber.com
References:
Chile’s Entel to sell fiber optic assets for $358 million to ON*NET Fibra
Chilean telecoms giant Entel (which this author consulted for in 2002 and 2005) said on Saturday it would sell the assets of its fiber optic business, which provides services to homes, to local company ON*NET Fibra (?) in a deal worth $358 million.
The sale, led by investment banks BNP Paribas, Santander and financial adviser Scotiabank, is subject to approval by Chile’s economic regulator, expected in the first half of 2023.
Entel and ON*NET Fibra signed an agreement as part of the deal that will enable Entel to continue offering internet services for residences on ON*NET’s network, Entel said in a statement.
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“By selling our network, rather than leaving the fixed market, we are increasing coverage rapidly to offer our internet services to the home at efficient costs and without the need to invest the sums required for a fiber deployment with this coverage,” the statement added.
Following the closing of this transaction, ON*NET Fibra is expected to reach more than 4.3 million homes in 2024. Entel has operations in Chile and Peru and has more than 20 million mobile subscribers.
Source: ON*NET Fibra
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References:
Nokia announces Lightspan MF-14 platform as “most advanced in the world”
Nokia has unveiled what it boldly claims is the “most advanced fiber broadband platform in the world,” one it’s calling the “fiber-for-everything” world. According to the vendor, the new Lightspan MF-14 platform extends the upper reaches of its fiber broadband range, bringing “unmatched” capacity, low latency, intelligence, reliability and efficiency. The platform, which falls into “Generation 6” of such things, is already being tried out by customers looking to build 25Gbit/s-capable network in Europe, North America and the Asia-Pacific region. Lightspan MF-14 is being premiered at the Network X event in Amsterdam from 18 to 20 October.
The industry is entering a ‘fiber-for-everything’ era. Once operators have deployed fiber-to-the-home, their networks pass every other building in the street, as well as the homes, meaning they can connect businesses and other services. Fiber PON will be capable of supporting high bandwidth consumer services, industry 4.0 applications, business connectivity, 5G transport and smart city services. This creates more revenue opportunities, lowers TCO and significantly reduces overall power consumption. This new broadband era, designated Broadband 6 by the World Broadband Association (WBBA), requires a new technical solution. Nokia’s pioneering Lightspan MF-14 is the first Gen 6 optical line terminal (OLT) in the world and has already been selected by customers building 25 Gb/second capable networks in Europe, North America and Asia Pacific.
Geert Heyninck, Nokia’s VP Broadband Networks, said: “Fiber-to-the-home is becoming fiber-for-everything. This is enabled by several technology advances, most notably higher speed PON technologies to accommodate all new services, and SDN to bring more intelligence in the network. If you think about it, the massive number of connection points on fiber make it a challenge to get an instant view of everything that happens in your network, fully automate network control, and perform actions with no service interruption. Our current portfolio is doing an excellent job in supporting many of these requirements for today’s and tomorrow’s services, but we are looking ahead. The MF-14 platform will suit operators who are planning large scale 25G PON, 50G and even 100G PON within the same environment.”
In his recent report* Erik Keith, Senior Research Analyst for Broadband Infrastructure at S&P Global, says: “The PON market is at a pivotal moment in the evolution of networks, where fiber broadband means so much more than residential connectivity. There is a huge opportunity for service providers to connect everything much more efficiently by leveraging their existing fiber broadband networks. After all, the same fiber cables that were originally laid in residential areas also pass commercial buildings such as office blocks, hospitals and government properties. This approach eliminates multiple overlay networks, minimizes digging up the streets, and lowers energy use substantially. The new Lightspan MF-14 OLT can enable operators to deploy a solution that will last for decades, while providing a platform that can increase network performance exponentially compared to most networks in use today.”
Based on new, advanced hardware and disaggregated software design, MF-14 is a generation leap in fiber access solutions. It is the highest capacity platform in the industry and the only solution ready for mass delivery of 25G, 50G and 100G PON services. It’s also the industry’s first OLT with the six-nines availability and sub-millisecond latency needed for mission critical industry 4.0 and 5G transport services.
Frontier Communications, the first in the U.S. to trial 25G PON, is also the first to evaluate MF-14 in its live network. Frontier’s Scott Mispagel, SVP National Architecture and Engineering, said: “We are proud to be the first to embrace this next-generation platform. This is another way for us to provide customers with the fastest broadband available. The MF-14 platform will support our path to 100G using our existing fiber network and future-proof our network with speeds that will continue to outpace cable and other technologies for generations to come.”
Nokia Lightspan MF-14
In July this year CityFibre – the UK’s largest independent full fibre infrastructure platform – signed a 10-year equipment agreement to support its nationwide network upgrade. John Franklin, CTIO, CityFibre said: “As we accelerate our full fibre rollout to serve a third of the UK market by 2025, the demand placed on those networks will also accelerate. MF-14’s flexibility and capacity will help us to meet the needs of our partner’s and their customers for generations to come.”
* From “Nokia launches 6th generation flagship fiber platform” published by S&P Global Market Intelligence.
Resources
Lightspan MF-14, a generation leap in fiber access solutions
- 4x higher capacity than previous generation, ensures smooth evolution to massive connectivity with 25, 50, 100.
- No single point of failures, ensuring the highest availability (six nines) in the market. This is important because consumers and business depend on broadband non-stop
- Sub millisecond latency for 5G transport and new array of industry 4.0 applications
- 20% higher power efficiency than the industry average so operators can decrease overall power consumption as they connect more points on fiber network and meet sustainability targets
- Modular software architecture for more agility for upgrading software and onboarding of new functionality, with much less effort and time.
- SDN programmability and open APIs to enable control function by Nokia or 3rd party network control functions
- Fast telemetry and digital mirror in the cloud for enhanced network overview
- For more details visit the web page
Fiber for everything website
World Broadband Association (WBBA) BB6 network characteristics, published in Next-Generation Broadband Roadmap white paper, Oct 2022
- Residential speed. Up to 50Gbps *
- Enterprise speed. Up to 1.6–3.2Tbps
- Intelligence. Fully autonomous
- Reliability & latency. Deterministic reliability / <1ms latency (hard guarantee) / very low jitter
- Trustworthy & green. 10×-plus better per bit energy efficient, very fast problem detection and response (seconds)
- Connectivity. Fiber sensors, 10 times more IoT terminals
- Sensing Capability. Fiber sensing for applications, application and computing awareness, AI
*Speeds listed are speculative given the timeframe, and further work by the WBBA will explore this in more detail in future reports.
California begins construction of $3.8B middle mile fiber network
California began work on an ambitious fiber project which aims to deliver statewide open access middle mile connectivity by the end of 2026. The project, which was announced in 2021, is being fueled by $3.8 billion in federal and state funds.
The sate’s network design calls for a total of 10,000 miles of fiber. The largest portion of the project will run through San Bernadino County, which will be home to 850 miles of fiber. Kern County (544 miles), Riverside County (535 miles) and Los Angeles County (525 miles) will also account for substantial portions of the system.
California’s Department of Transportation (Caltrans) is working with the state’s Department of Technology to complete the project.
During a project meeting in September, Caltrans’ Acting Assistant Deputy Director for the Middle Mile Broadband Initiative Janice Benton said preconstruction work – including environmental, permitting and design tasks – was already underway for 93% of the project’s fiber miles.
She added 114 miles of the project are expected to go into construction in 2022, with another 300 miles to come in 2023. The first leg of its work got underway this week.
The state of California has already advertised contracts covering 900 miles of the project. And by October 14, it was planning to have 60% of the middle mile network out for construction bids. It is aiming to have 100% of the system under contract by May 2023.Once the network is complete, ISPs will be able to tap into it to provide last mile connectivity. Those efforts will also get a funding boost. The same 2021 legislation that allocated $3.25 billion for the middle mile project (which was subsequently supplemented by another $550 million from the 2022 state budget) also set aside $2 billion for the rollout of last mile connections.
The 10,000-mile “middle mile” network is expected to cost $3.8 billion and help connect the roughly one in five Californians do not have access to reliable and affordable high-speed internet.
“We are thrilled to see construction begin on the middle-mile network,” said Secretary Tong. “Too many rural and urban areas lack adequate broadband infrastructure, forcing residents to attempt to connect via mobile hotspots and unreliable satellite service, which leaves out too many Californians.”
Former Los Angeles Mayor Antonio Villaraigosa, who was named by the Governor in August to serve as Infrastructure Advisor to the State of California, joined the event Thursday to highlight the substantial federal resources coming to the state for infrastructure investments like broadband networks.
“This broadband network is one of the most ambitious and impactful infrastructure projects in California – and we’re thrilled that construction is underway starting today,” Mayor Villaraigosa said. “With billions more in federal infrastructure dollars on the way, we’re getting ready to celebrate many more groundbreakings for innovative projects across California. This goes far beyond infrastructure, this is about building the future of our state and creating thousands of good-paying jobs along the way.”
CDT Director Liana Bailey-Crimmins said construction on the first segment of the Middle Mile network follows more than a year of planning.
“The rapid planning by the Middle Mile team as well as our local partners is coming to fruition. It’s wonderful to see the hard work paying off, to make a difference in the lives of Californians who live in unserved areas like this one.”
Caltrans Director Tony Tavares said each of the Department’s 12 districts is working to build segments of the Middle Mile network on an ambitious timeline in the hope of capturing the maximum amount of federal funding available.
“This project provides a wonderful opportunity for us to ‘dig smart’ and highlights the benefits of coordination among state agencies and with our local partners. Caltrans is proud to partner with the Department of Technology to create a broadband Middle Mile network, providing equitable, high-speed broadband service to all Californians.”
Once the Middle Mile network is complete, local carriers will have access to the network to provide communities with direct service to homes and businesses as well as reduced-cost or free broadband internet service for those who are eligible.
References:
https://www.fiercetelecom.com/telecom/california-kicks-construction-38b-middle-mile-fiber-network
