The HOW-TO guide to building your own fiber optic network An ISP perspective

1. The HOW-TO guide to building your own fiber optic networkAn ISP perspective Robert Proulx Yves Le Borgne IMS Consultants inc RISQ

2. About this presentation • RISQ • Rationale for private networks • Private network, a business decision • The HOW-TO guide • Some facts • examples • Questions

3. About RISQ • Le Réseau interordinateur scientifique québécois • Founded in 1989 • Provide internetworking and access to Internet and advanced networks • To universities • To colleges • To research centers

4. About RISQ • Now an 'Optical Regional Advanced Network' (ORAN) • 100+ members • 'Fiber rich diet' • Evolving towards all optical networking, privately owned and operated

5. RISQ networking - historical notes • Traditional leased lines approach until 1997 • First MAN built in Montreal, 1997 • Inter city transport in 1998 : oc48 Montréal-Québec, other destinations • Started Québec city MAN in 1998 • Many projects in 1999

6. About RISQ and IMS • RISQ is getting involved in fiber builds all over the province • IMS is the provides us the engineering expertise and 'turf knowledge' required for these projects

7. About this presentation • RISQ • Rationale for private networks • Private network , a business decision • The HOW-TO guide • Some facts • Examples • Questions

8. Bandwidth requirements • The drivers • LAN Inter networking • Multimedia applications • Internet • Videoconference

9. Cost of bandwidth • Public network costs • Marketing • Network operations • Administration and billing • etc.

10. Cost of bandwidth • Commercial network topology CO CO other CO ’s CO Other CO ’s Other CO ’s

11. A solution • Construction of private networks

12. About this presentation • RISQ • Rationale for private networks • Private network, a business decision • The HOW-TO guide • Some facts • Some examples • Questions

13. What is a private network • Network dedicated to a specific organization; • Designed to satisfy the needs of this specific organization; • Private network examples: • LAN • PABX

14. Why a private network ? • Bandwidth requirements • Ownership costs vs. Cost of bandwidth • Glass is freedom … • Flexibility - no permissions to ask, no functional restriction ; • Growth : no foreseeable limit to transport capacity ; • Stable, durable financial planning horizon

15. Is a private network cost effective ? • Yes, for buildings close together; • Yes, for institutions owning many buildings in a localized geographic area; • Yes, for long hauls, when: • broad clientele base • Partnerships are possible for builds • No, for users who do not expect a major increase in their bandwidth needs;

16. Benefits of fibre-optic networks • Bandwidth can be increased by changing opto electronic equipment at extremities; • Support all protocols; • Long life expectancy (> 20 years); • Small recurrent fees.

17. Drawbacks of fiber-optic networks • May be more expensive than microwaves; • Fiber optic installation in public structures is regulated by CRTC; • Longer construction schedule.

18. About this presentation • RISQ • Rationale for private networks • Private network, a business decision • The HOW-TO guide • Some facts • Some examples • Questions

19. Regulatory context • Public infrastructures available only to registered telecommunication companies • Pole, messenger wire, conduits • Cables should be owned by the telecommunication companies.

20. Proposed methodology • Partnership with a telecommunication company; • Engineering and construction management under the supervision of the institution.

21. PartnershipFiber optic construction for the education sector • The Telco agrees to use it ’s license for private network construction; • The Telco remains owner of the cable and the fibers; • An irrevocable right of used is given to the institution.

22. PartnershipNetwork maintenance • The Telco accept to maintain the network at cost plus 5%; • The Telco asks to reserve 6 fibers for it ’s own needs (additional fibers at the Telco's charge); • The Telco assumes the maintenance costs for the portion of network which will be commercialized.

23. PartnershipConstruction management • IMS/RISQ is managing the contract for the institution • IMS/RISQ prepares the engineering documents according to the institution needs • RFP is issues according to the rules of the institution

24. Partnership Construction management • The institution emits the RFP • IMS/RISQ analyze proposals recommends Contractor • Contractor is selected • IMS/RISQ manages the project and supervises the construction • IMS/RISQ assumes professional responsibility related to the project

25. Cost identifications • Immobilization costs • Management • Engineering • Construction • recurrent costs • Right of way • Maintenance

26. Cost identificationImmobilization costs • Management engineering and construction • average cost: between 7 $ and 15$ per meter • these costs included: • Management, engineering and construction costs • Authorizations requirements • Fiber optic cables • Fusion of fibers • etc.

27. Cost identificationImmobilization costs • Exceptions • Highway, river and railway crossings • Municipal regulations • Rural area

28. About this presentation • RISQ • Rationale for private networks • Private network, a business decision • The HOW-TO guide • Some numbers • Some examples • Questions

29. Recurrent costs • Right of way (above ground structures) • Poles : 1,32$ / pole / month • wire : 42 ¢ / span/ month • Total : 44 ¢ / meter / year • Right of way (underground structures) • Bell conduits: 90¢ / meter / year

30. Cost identificationrecurrent costs • Maintenance • 150$ / km / year • 15¢ / meter / year

31. Cost identificationRecurrent cost (summary) • Above ground • 44¢ + 15¢ = 59¢ / meter / year • Underground • 90¢ + 15¢ = 1.05$ / meter / year

32. Return on investment • 100 schools at $400 per month during 3 years = 1 440 000 $ (for a maximum speed (asymmetric) of 7 Mbps) • Fiber optic network= 1 500 000 $ (for a speed of 10/100/1000/? Mbps) • No more need for router and servers in school when fiber is installed: potential savings of $800 000; • Partnership possible with other public organizations

33. About this presentation • RISQ • Rationale for private networks • Private network, a business decision • The HOW-TO guide • Some numbers • Some examples • Questions

34. Projet Rive-Sud Vers INRS et IREQ RISQ Coût du projet: $ 828 400 Revenus additionnels: $ 251 000 Réduction des coûts du RISQ $ 206 035 retour sur investissements: 0,9 années Contribution des partenaires: INRS: $ 200 000 U.de.S: $110 000 Axion $200 000 Ed.Mon.$ 35 000 Inst.Télé$ 15 000 IREQ $ 7 200 CS M.V.$ 4 700 A.Spat: $ 30 000 ============= Total $601 900 Coût RISQ: $ 226 500 Amortissement annuel: $ 44 955 Entretien annuel: $ 10 000 CNRC U.de.S Campus Longueil. Edouard- Montpetit Collège Champlain Vers collège aéronautique et Agence Spatiale RISQ Institut des télécom.

35. Projets Divers RISQ Chicoutimi Coût du projet: $ 4 000 000 Vers Rimouski Shawinigan Revenus additionnels: $550 000 Thedford Sherbrooke Hull

36. Conclusion • Construction of a private fiber optic network is an investment rather than an expense • Possible integration of telephony and other services

37. Conclusion • In the 1970 ’s • School boards were building schools • In the 2000 ’s • School boards build telecommunication networks • The education sector needs the telecommunication facilities • Opportunities for partnerships

38. Questions ?