1 / 27

Current Communications Group

Current Communications Group. July 2003. Current Communications Group / Current Technologies. Confidential – Subject to Liberty Associated Partners Agreement Terms. Introduction.

charleswright
Download Presentation

Current Communications Group

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Current Communications Group July 2003 Current Communications Group / Current Technologies Confidential – Subject to Liberty Associated Partners Agreement Terms

  2. Introduction “This is within striking distance of becoming the third major pipe in the home” – Michael Powell, Chairman FCC, April 10, 2003 • Powerline communications offers a viable, cost-effective new network for broadband services • Target markets: consumers, SME, enterprises, and utilities Agenda Overview of Current Current’s Powerline Communications Network PLC vs. Other Broadband Networks Summary

  3. 1. Overview of Current

  4. Current Group’s Broadband Powerline Communications (PLC) Mission Develop and manufacture powerline communications equipment that provides end-to-end broadband connectivity Current ServicesCompany Operate partnerships with electric utilities to deliver broadband data and voice services over the power grid to residential and business customers Current TechnologyCompany

  5. Why Current’s Powerline Communications? • Current’s broadband service focuses on ubiquitous coverage of residential and small business customers • Macro-level: Power networks reach all homes and businesses • Micro-level: Power networks reach all outlets within a home or business • Cable and DSL cannot serve everyone • Current’s PLC service and network have economic advantages • Network equipment costs are low and improving • Few truck rolls to customer premises • Modular build-out minimizes upfront funding • Not a “greenfield” network overbuild – PLC uses existing infrastructure and rights-of-way to sell additional services to existing utility customers • Customer powerline modems are available in stores today • “Plug-and-play” – customer buys a modem and plugs it into any outlet • 2-4 Mbps net symmetrical data rate – significant increase with next generation • Enhanced electric power distribution services for utility partners and their customers

  6. Domestic Electric Utility Geographic Distribution Largest utility covers only 5% of U.S. residences 30 largest utilities cover over 55% of U.S. residences Over 100 utilities coverthe top 100 metropolitan areas Over 2,500 utilities in the United States (a) (a) Includes investor-owned utilities (IOUs), municipals, government-owned and cooperatives

  7. Current and Electric Utility Partnership • New value opportunities from broadband services for all partners • Combines strengths of each partner • Utility infrastructure, local resources and customer relationships • Current’s proprietary PLC equipment, technical and industry expertise • Current’s history building communication services businesses with focused management team and operational execution experience • Infrastructure and best practices shared across markets • Leverage capex investment – one NOC, one back office, etc. • Shared funding

  8. Enhanced Power Distribution Services • Improved network management • Outage detection • Load shedding, profiling and balancing • Transformer overload protection • Power quality monitoring • Meter tamper and theft detection • Network security and monitoring • Cost savings • Automated meter reading (including gas and water) • Fewer truck rolls • Lower call center costs • Automation • Remote connect / disconnect • Internal communication links

  9. Current Services Company Today • Two deployments underway with leading electric utility partners that collectively serve 2.5 million homes and over 300,000 small to medium-sized enterprises (SMEs) • Negotiations in process for other deployments • Current has deployed 82 CT BridgesTM • To date 200+ homes installed for broadband data service, representing 30% of homes enabled • Homes generally already have access to DSL and cable modem • Average electrical outlet in these homes receives over 2-4 Mbps • Current has experienced management operating the deployments • Current has a strong intellectual property position • Backed by Liberty Associated Partners and EnerTech Capital

  10. 2. Current’s Powerline Communications Network

  11. Typical Domestic Aerial Electric Power Distribution Network

  12. Powerline-fiber interface at substation Overlay of Current’sHybrid Fiber Powerline (HFP) Network Fiber backhauls to a carrier Point of Presence (POP) CT BridgeTM installed at transformer Customer plugs modem into any outlet: broadband data and voice instantly enabled

  13. Current’s Network Components I CT BridgeTM • Developed and manufactured by Current • Industrial-grade product, meeting the stringent environmental, electrical and safety requirements of the electrical utility industry. • Deployed next to a transformer as a gateway between low-voltage and medium-voltage lines • Aggregates traffic from 6-12 homes or 1-2 businesses • Uses a CT Coupler in order to communicate across the MV lines • Provides routing, subscriber mgt., DHCP, security, differentiated services, network mgt. & various enhanced power distribution services CT CouplerTM • Developed and manufactured by Current • The only system element that physically touches the medium-voltage distribution line • Prevents dangerous voltage from passing from the MV lines through it while at the same time allowing data signals to travel through with minimal signal loss • No active electronics and, therefore, has a long working life • Deployed with both CT Bridges and CT Backhaul-points to connect them to MV lines

  14. Current’s Network Components II Powerline Modem CT Backhaul-PointTM • Developed and manufactured by Current • Aggregates traffic from multiple CT Bridges and connects to a metro area network • Uses a CT Coupler in order to communicate across the MV lines • Available now from retailers • Manufactured by third-parties • Small size; plugs into any socket • 2-4 Mbps net / 14 Mbps raw bandwidth • Connects to USB or Ethernet port of any computer • Complementary with 802.11x CT ViewTM • Network element management system developed by Current Group • Runs on a dedicated centralized computer offers multiple levels of security • Enables automated user and infrastructure provisioning • Manages customer data • Monitors system status, performance and usage

  15. Powerline Modems Available Now • 2-4 Mbps net (14 Mbps raw) symmetrical bandwidth delivered to an electrical outlet • “Plug and play” functionality • Wholesale prices declining • Current’s implementation provides LAN / WAN capability throughout the customer premise • Customer can plug into any electrical outlet • Integrated PLC modem / 802.11b units also available • Leading consumer electronics manufacturers

  16. Medium Voltage Line Current’s Network Components at the Pole CTCouplerTM connects CT Bridge to MV line CTCouplerTM connects CT Backhaul-Point to MV line CTBridgeTM aggregates traffic from multiple customer sites Low voltage lines connect customers to transformer CTBackhaul-PointTM (node/cell siteequivalent) aggregates traffic from multiple CT Bridges and connects to fiber metro area network Existing transformer steps medium voltage down to low voltage levels PowerlineModems connect devices to Current’s network by plugging into electrical socket Fiber Residences

  17. IP Switch IP Switch Operator Services SS7 ILEC/IXC The Current IP-Based Network Regional Data Center Legend Customer’s Equipment Carrier Equipment NOC Call Agent DS1 SS7 Gateway SS7 Monitoring DS1 OSS/BSS Op Svcs Gateway Customer Premise Analog line PLM LV Other Regions IP Line Router IP Applications PLC LAN PLM Call Control and Regionally based IP Applications Private WAN Backhaul Point 1 of X PLM POP Other Markets LV Transformer 1 of X Distribution Pt 1 of X Router PLM Call Control and Regionally based IP Applications DS1 or DS3 Router Router DS3 Bypass Device Internet Media converter Internet Router Router DS3 OC X MV IP Applications 911 Gateway 911 Internet DS1

  18. Network Design Strategy • Minimize build-out costs • Utilize existing fiber, microwave, medium voltage and low voltage network elements • Take advantage of natural aggregation points • Utilize inexpensive customer premise devices • Toolbox philosophy • Mix and match technologies as appropriate • Maximize modular, success-based deployment • Technical specs • Ensure signal can travel as far as possible on the MV lines • Attain data rate sufficient to service customer loads • Ensure a required latency level for certain services such as streaming, voice and gaming services

  19. PLC Equipment Development • HomePlug was a big step • Commercially available in 2002 • Provides low-cost, high bandwidth device for inside premises • Solutions for the low voltage and medium voltage parts of the network have lagged • Equipment designed for one country generally cannot be used in another without substantial modification • Significant differences between electrical networks in North America and elsewhere in the world • Current has developed an end-to-end network solution • Addresses LV and MV lines and customer premises • Significantly higher net throughput per user than any other solution that has been publicly demonstrated • Current has unique strategy of focusing on services as well • More effective than a hardware-only strategy that is dependent on utilities implementing PLC networks on their own

  20. 3. PLC vs. Other Broadband Networks

  21. PLC Comparative Advantages • PLC will be a viable third broadband network for residential and SME customers and can gain a significant share of the market • Compelling price, performance, quality, and ease of use • Broad footprint reaching substantially all homes and businesses • Power outlets provide PLC connectivity in every room and office • Network construction cost profile of PLC is compelling • PLC will become even more advantageous in future years • Powerline LAN devices are commercially available, operate at 2-4 Mbps net symmetrical, and cost $45 wholesale • Even lower prices available for high quantity purchases • An overlay, not a “greenfield” network overbuild • Use existing infrastructure, rights-of-way and sell additional services to existing utility customers • Additional revenue from electric power distribution network management and automation services provided to utility partners

  22. PLC is Complementary with 802.11x • 802.11x offers inside mobility, but signal and throughput cannot be assured in every room/office, even when antenna is located inside • When deployed outdoors, 802.11x cannot pre-qualify customers • An outdoor antenna may cover a certain number of homes, but it is not possible to determine reliably which of those homes have adequate wireless signal and bandwidth inside • The only way to confirm is to attempt to install the equipment inside a user’s premises • If the data rate is inadequate after installation, the customer will cancel, the sign-up and installation costs are lost, and reputation is impacted • PLC solves many limitations of 802.11x • Extends reliable bandwidth to every power outlet, bypassing physical barriers to wireless signals • From a power outlet, an 802.11 WAP can then provide a reliable wireless connection in a room/office that it otherwise could not • Current can use 802.11x in various ways to augment its network

  23. DSL Comparison • DSL-serviceable market limited by many factors • Many central offices (COs) cannot accommodate DSLAMs • Remote terminals are very costly to deploy (equip. + fiber backhaul) • Legacy loading coils block signals • Distance from CO affects available data rate – typically asymmetrical • Near-end cross talk impairs bandwidth and maximum number of suitable lines • Higher bandwidth per user requires • Shorter loop length • Higher quality copper • More expensive equipment • In order to achieve higher market penetration rates, ILECs must • Undertake costly upgrades, deploying many new remote terminals and new fiber closer to customer locations • Recondition / replace impaired copper Breakdown of 205 Million Domestic Access Lines Source: CIBC October 2002

  24. Cable Comparison • Networks presently have limited physical access to businesses • Owing to their heritage as a consumer service, cable networks primarily wire residential areas • Although parts of the network pass near businesses, significant expenditures would be required to actually connect them • Cable modem deployment will be substantial, but it will not pass all homes • Symmetrical data rates are typically not offered today • Most deployments use DOCSIS 1.0/1.1 generation equipment • Significant expenditures will be required for upgrades in order to satisfy increased bandwidth demand • Frequent truck rolls; limited self installation • New coax drops; rewiring coax in home (e.g., extend to computer location) • Upstream path is currently limited in bandwidth due to small spectrum allocation of 5-42 MHz

  25. PLC Comparative Advantages Symmetrical Bandwidth Network Footprint Mobility / connectivity every room Customer Truck Roll Truck roll cost Disqualified / Failed Installs

  26. 4. Summary

  27. Highlights • PLC is a viable, cost-effective new network for broadband services • Current’s competitive advantages • Ubiquitous power networks today = ubiquitous Current broadband network tomorrow • Few truck rolls to customer premise • Low cost and high data rate powerline modems are available today • In-premise LAN functionality with no additional wiring • Current has a focused strategy and is executing • Network and proprietary PLC equipment operating successfully • Deployments continue; building strong partnerships with leading utilities • First mover: only independent company pursuing services • Liberty Associated Partners has a successful track record in launching communications companies

More Related