Gigabit Services Is it real or is it hype? Dean Mischke, P.E. Vice President

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An Exponential Terminology Bits and Bytes  A terminology for digital information transfer rates (bits) and storage (Bytes) – – – – – – – – –

bit = 0 or 1 Nibble = 4 bits Byte = 8 bits KiloByte (KB) = 1024 Bytes MegaByte (MB) = 1024 KB GigaByte (GB) = 1024 MB TeraByte (TB) = 1024 GB PetaByte (PB) = 1024 TB ExaByte (EB) = 1024 PB

– ZettaByte (ZB) = 1024 EB – YottaByte (YB) = 1024 ZB

– Speed is in bps – Storage is in Bytes

http://lifehacker.com/the-difference-between-bits-and-bytes-and-why-it-matte-510705022 http://www.whatsabyte.com/

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Perspective on Size Average Sizes of some common residential items:  A picture taken with my Android Device = 1.4 MB  A song download from iTunes = 5.0 MB  A photo taken with a SLR digital camera = 10.0-59.9 MB  A CD worth of data = 560 MB  A HD movie on Netflix (varies) but today = 3.8 GB – Future Sony 4K HD Movie = 50 GB (uncompressed) fecinc.com

Perspective on Size Sizes of a large business file:  Digital Lidar file flown by a fixed wing aircraft for a 50 mile segment of new transmission line imaging 800’ in width @ 6 data points per square meter:

= 500 GB file

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Perspective on Size  If a vacation picture (1.4 MB) taken on my Android device was the size of a golf ball… (Surface Area of a Sphere) Dia. = 1.68”

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Perspective on Size  Then a 50MB GIS database has the surface area equivalent to a men’s basketball  Diameter = 10”

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Perspective on Size  Then the new 4K HD Sony movie = 50 GB would require 2.6 of the largest beach balls I could find (D = 10’)  Diameter = 26.75’

http://www.Beachball.com

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Perspective on Size  The Finley 500 GB Lidar file would require sphere a football field in diameter  Diameter = 84.6’ (28.2 yards)  1 Hr and 14 Minutes to download on 1Gbps connection

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How Much Bandwidth is Enough? FCC National Broadband Plan Goals  Current – 4 Mbps down / 1 Mbps up actual data rates to all homes

 2015 – 50 Mbps down / 20 Mbps up actual data rates to 100 million homes

 2020 – 100 Mbps down / 50 Mbps up actual data rates to 100 million homes

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How Much Bandwidth is Enough? 

The average broadband package today is approximately 9.0 Mbps

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3.0 Mbps to 50.0 Mbps Advertised by Telecommunications Companies

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“Fast” broadband is typically advertised by CATV as being over 30 Mbps

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CATV & FTTP companies are rolling out 50 -100 Mbps services, promising 150 Mbps and 300 Mbps services

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FTTP can deliver over 1 Gbps services and is currently rolled out to over 40 cities fecinc.com

Future Bandwidth Requirements  Many experts envision 100 Mbs to the customer within the next 5 years: – As HDTV becomes the normal TV medium – As 20-50 Mbps High Speed Internet becomes the norm to support: – Multimedia Applications (i.e.. Online Gaming) – Streaming Video (i.e. YouTube, Netflix, Apple TV) – The Cloud increases the need for higher upload speeds – Symmetrical bandwidth becomes more important

 Gigabit Speeds for future applications fecinc.com

What’s Next for Video?  Quad HD Video-2160p-4K Ultra HDTV – It has a resolution of 3840 x 2160, double 1080p at 1920 x 1080 at 16:9 or 1.78:1. – Product introduction started in the 2012 – It requires 4 times the bandwidth of a HD signal – 8 Million Pixels vs 2 Million Pixels http://www.digitaltrends.com/home-theater/everything-youneed-to-know-about-4k-ultra-hd/#!C3bkU

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What’s Next for Video?  Quad HD Video-2160p-4K UHDTV Continued – April 2013: EVS announces live slow motion system capable of simultaneously supporting four 4k channels

http://www.evs.com/nala/news/evs-present-world%25E2%2580%2599sfirst-4k-live-slow-motion-replay-system-nab-2013

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What’s Next for Video?  Quad HD Video-2160p-4K UHDTV Continued – Large screen sizes work against higher compression levels – 65” Samsung Ultra HD TV run $3,995 at Crutchfield – Other than a proprietary Sony system, no Content available at TV – Needs HDMI 2.0

– Most content now filmed using 4K

 8K Ultra Ultra HDTV – has a resolution of 7680 × 4320 – It requires 16 times the bandwidth of a HD signal – 2014 Olympics partially filmed in 8K

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Over The Top Video – A disruptive force in video content distribution – The customer purchases content directly from the Content Provider not from a CATV, Satellite or IPTV Service Provider – Content is downloaded over system to the customer’s device

Service Provider provides a pipe only – –

Family TV Family time has been redefined with everyone watching their show on their own device Multi-Screen Viewing and supplemental content • Watching and Tweeting or posting to Facebook

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Network Recommendations Below are the internet speed requirements and recommendations for playing movies and TV shows on the Netflix website. • 1.5 Mbps- Recommended broadband connection speed • 3.0 Mbps- Recommended for DVD quality • 5.0 Mbps- Recommended for HD quality • 7.0 Mbps- Recommended for Super HD quality • 12.0 Mbps- Recommended for 3D quality fecinc.com

Today’s Network Performance

http://ispspeedindex.netflix.com/ fecinc.com

Gigabit FTTH Momentum  Momentum highlighted by Google’s entrance

– Kansas City, Austin, Provo – Causing incumbents and broader industry to respond

 Anchor institution interest – Gig.U – Gigabit Squared

 FCC called for one Gigabit network in each state by 2015  Municipals have embraced Gigabit before and after Google fecinc.com

Municipal Gigabit FTTH Footprint

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Gigabit FTTH Momentum

http://www.gigabitethernet.solveforce.com/gigabit-ethernet-bandwidth-wisconsin fecinc.com

Gigabit FTTH Momentum

http://www.gigabitethernet.solveforce.com/gigabit-ethernet-bandwidth-wood-county-wi fecinc.com

Google Gigabit FTTH Motivations  Agitate/Encourage broadband ecosystem to innovate and “speed up”

– First generation broadband saw 100x incremental speed factor – They want second generation to see the same

 Create “laboratories” of broadband innovation – Apps that we’re not thinking about right now

 Make money?

– On record as saying they think these markets can be profitable – Expect to see additional Google Fiber networks

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Google Gigabit FTTH Motivations

https://fiber.google.com/newcities/

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Residential Gigabit Pricing  Vtel: $35.00 2.5TB data cap, Includes Rural  Google Fiber: $125 Internet + TV; $70 Internet – Google: pay construction cost($25/month for 1 year), receive service free for 7 years; •

5 megabits download, 1 megabit upload

 Chattanooga: – Gigabit symmetrical for $349.99 -> $299.99 – Sept 2013: Announced 1G to residential for $70, passes 56,000 customers

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Residential Gigabit Pricing  Reedsburg $274.95 to $299.95 Will include Rural when complete  Cedar Falls: $275  Solaris: Approximately $600  Approximately 30 other project ongoing, but most only cover a portion of the community  Many Wisconsin Independent Service Providers are already FTTH or will be in the next four years fecinc.com

Gigabit FTTH Market Realities  Gigabit subscribers are on the Internet more than three times as many hours as the average Internet user—about 8 hours per day in comparison with just 2.5 hours per day  Five or more network devices in the home  Subscribers have found that they have to upgrade their home network and fine-tune computers to handle Gigabit speed.  Heightened instances of multiple applications in play at all times. In addition to being near-continuous users of social networking, they view HD video downloads and streaming media and participate in multi-player games, among other activities.

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The Impact of Gigabit on the Backbone  Cost for backbone bandwidth – 1 Megabit from a Typical Statewide Network is $0.50 to $5.00/Mbps/Month – Transport can add from $2.00 to $6.00/Mbps/Month  A 100 fold increase in subscriber bandwidth may cause a 10 - 30 fold increase in uplink cost to the ISP/Telco  Local Content Caching Servers  Local Speed Test Servers  Still some debate as to how fast the ISP uplink needs to be fecinc.com

Bandwidth Management  On the Internet, Bandwidth is not unlimited and is shared between users: – Oversubscription – High Transfer rates is not the only objective – Low Latency – Low Jitter

 Bits and Bytes, or performance based billing: Light user vs. heavy user “I want my traffic tagged as high priority and I’m willing to pay for it.” fecinc.com

OK, So How Do We Get There  How do you support the demands for additional Bandwidth ?

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Where have We Been ?  1998 BPON ITU-T G.983 – 622 Mbs Downstream /155 Upstream Mbs

 2003 GPON ITU-T G.984 – 2.5 Gbs Downstream /1.2 Upstream Gbs

 2008 802.3ah Active Ethernet – 1Gbps Symetrical Access Network Ethernet

 2009 802.3av EPON – 10Gbps EPON or 10G-EPON

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XG-PON ITU-T G.987  Adopted in 2010  Expanded upon the WDM already being used in G-PON – Add 1260-1280 nm to 1330 nm for XG-PON Upstream – Add 1575-1580 nm for XG-PON Downstream

 Add Optical Band Filters at ONU to support Legacy ODN

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XG-PON ITU-T G.987  XG-PON identifies two transmission speed sets: – XG-PON1: nominally 10 Gbit/s down, 2.5 Gbit/s up; – XG-PON2: nominally 10 Gbit/s down, 10 Gbit/s up. fecinc.com

NG-PON2 ITU-T G.989  Published March 2013  Vendors are developing products at this time  Goals – 40 Gigabit per second downstream – Support Legacy ODN back to G-PON – Coexistence with legacy system, resides within 1260 nm to 1625 nm – Colorless (tunable) Optics – Increased Reliability and Redundancy – Lower power consumption

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NG-PON2 ITU-T G.989  TWDM PON: A time and wavelength division multiplexing passive optical network(TWDM PON) is a multiple wavelength PON solution in 4 to 8 wavelength pairs are shared between multiple optical network units (ONUs) by employing time division multiplexing within a wavelength and wave division multiplexing to combine the wavelengths on a single fiber. fecinc.com

NG-PON2 ITU-T G.989  PtP WDM: Point-to-point wavelength division multiplexing (PtP WDM) is a multiple wavelength PON solution that provides a dedicated wavelength per ONU in both downstream and upstream directions. The defining characteristic of a PtP WDM is that each ONU is served by one or more dedicated wavelengths fecinc.com

What is the Competition?  LTE  DOCIS

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LTE Advanced  True 4G with voice, data, and video in a single combined data stream  Current LTE transmits voice in 3G

 First systems deployed in South Korea  Now being deployed in Australia, Japan, and Sweeden  AT&T in trials in their AWS spectrum  Verizon is also in trials

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LTE Advanced      

100% compatible with LTE Integrates with WiFi Smoother hand-off will reduce drops Theoretical speeds up to 1 GHz Per Sector Observed speeds of 150 Mbps Possible due to five key improvements

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LTE Advanced  Frequency Aggregation

 Up to 5 blocks of spectrum of up to 20 MHz for a total of 100 MHz 10 MHz 700 MHz 20 MHz 800 MHz   20 MHz 1700 MHz

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LTE Advanced  Multiple Input Multiple Output (MIMO) – Multipath – Beam Forming – From 4x2 of LTE to 8x4 in LTE A – Eight Fold increase in speeds without additional spectrum

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LTE Advanced  Smart Relays

– Previous relays just amplified – Smart relays actually decode signal and re-transmit a clean signal – Only sends the signal necessary for the phones served on the relay

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LTE Advanced  Small Cells

− Enhanced Inter-Cell Interference Coordination − Coordinates spectrum to eliminate interference − Only sends the signal necessary for the phones served on the relay − Up to 8 small cells

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LTE Advanced  Coordinated Transmissions

− Multiple Cell Sites can serve a high bandwidth user

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DOCSIS  Data Over Cable Service Interface Specification  Allows for transport of Ethernet over coax and fiber cable using CMTS (RF modems)  DOCSIS 2.0 supported 50 Mbps downstream speeds  DOCSIS 3.0 support 300 Mbps downstream speeds – Some CATV Providers are offering 105 Mbs service

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DOCSIS 3.1  Standards adopted in Oct 2013 − Network Management Specs expected in 2014

 Better Spectrum Efficiency − 4096 QAM as opposed to 256 QAM − OFDM with 20-50 KHz wide Carries

− 500 MHz of Spectrum required for 5 Gb/s − 780 MHz required with DOCSIS 3.0

− Envisions 1.2 Hz CATV system bandwidth up from 750 MHz, 860 MHz and 1 Hz

 10 Gigabit downstream / 1 Gigabit Upstream  Planned Equipment availability in Late 2015 fecinc.com

Wireless Broadband  Benefits − Lower startup costs − Serve low density areas − Use as an “edge out” platform

 Challenges − Bandwidth limitations − Speeds still in the low teens of Mbps − Spectrum − Licensed 700 MHz (Future 600MHz) − Non Licensed 900 MHz, 2.4 GHz, 5.8 GHz − “Registered” 3.65 GHz

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Gigabit FTTH Implications  Momentum and Google PR machine impacts the entire ecosystem  Doesn’t appear that overall market demand justifies Gigabit FTTH for now, but it does put pressure for higher broadband speeds in general  Does create a PR/marketing opportunity – Gigabit networks get press and attention – may be a need to leverage that in your market(s)  Google market laboratories will surely create apps that we haven’t dreamed of, which in turn, may start creating demand for true Gigabit fecinc.com

To Gigabit or Not to Gigabit…  Understand your market area  Develop your business model based on your data and research  Engage your local Community – Economic Development – Focus Groups

 Google is using brand power and strength  FCC initiative “one in every state”  Funding Sources fecinc.com

Thank You

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Finley Contact Info Dean Mischke [email protected] 715-930-7255

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