9 Maximizing Network Investments 9 Identifying Funding Resources 9 The Emerging Role of Rural Electric Cooperatives 9 Redefining Broadband 9 ...
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Volume XIII, Issue 2 walkerfirst.com/skinny-wire Insights for ICT Professionals
99Maximizing Network Investments
99Identifying Funding Resources
99The Emerging Role of Rural Electric Cooperatives
99Redefining Broadband
99Questions Rural Broadband Providers Must AnswerIN THIS ISSUE . . .
Broadband funding appears to be a hot topic these days. Each industry
FEATURE ARTICLES event so far in 2019 has allocated at least some part of their educa-
tional content toward discussion of funding mechanisms for broadband
4 Funding Rural Broadband - A Frontline View deployment. New federal and state programs, coupled with relaxed state
By Alan Fitzpatrick, Open Broadband, LLC legislation regarding electric cooperatives, make this an important topic
for the industry, and one we believe resonates well with our subscribers.
9 Public-Private Partnership Will Build Out Affordable
Broadband in Rural America
There appear to be two basic elements of this discussion, however. One
By Sarah Tyree, CoBank is the definition of broadband, which according to the FCC is still 25/3
Mbps. This threshold is the measurement by which communities are
10 Questions for Rural Broadband Providers
eligible for federal funding programs. Anything below this standard may
By Prayson Pate, ADVA Optical Networking
be considered underserved or unserved. Communities at or above the
13 Fiber: We Are the Difference for US Jobs FCC definition fall outside the scope of federal funding, and must rely on
By Lisa R. Youngers, Fiber Broadband Association incumbents or new competitors who identify a return on an investment
for new infrastructure.
16 Funding Opportunities
By Vantage Point Staff The second element is dependence on US mapping to identify unserved
and underserved communities. By all accounts, current maps are highly
21 Rural Deployments: What to Buy? suspect, leaving many communities disconnected from vital digital
By Steven S. Ross, Broadband Communities resources. According to a research report by CNet earlier this year, “The
lack of visibility means 19 million people in this country still lack broad-
22 Mapping A Better Broadband Future
band access at a time when the service is considered as important as
By Chip Pickering, INCOMPAS
water or electricity.”
25 Investing for the Future of Rural Broadband Infrastructure
By Shirley Bloomfield, NTCA The digital divide has been about more than the convenience of fast
downloads of music and movies for years. Increasingly, broadband con-
28 Broadband Breakthrough: Electric Cooperatives are nectivity is about economic development, community stability, and com-
increasingly seen as part of the solution to rural connectivity munity safety. The need for greater than 25/3 Mbps is clear.
By Cathy Cash, NRECA
Consider, for example, that the FCC website offers a Household
35 NC Broadband Infrastructure Office Broadband Guide, which includes a chart to compare minimum down-
By Jeff Sural, NC Department of Information Technology’s load speeds for light, moderate and high household use for one, two,
Broadband Infrastructure Office (BIO) three of four devices at a time. Industry leading researchers forecast
that by 2021, North American households will have an average of 50 net-
36 Show Me the Money: Broadband Funding for Rural Utilities
worked devices. By this forecast, the FCC doesn’t offer a solution using
By Bob Lockhart
its model of 25/3 Mbps.
42 What’s Your Time IQ?
By Brenda Abdilla, Management Momentum Whether by 5G or fiber, greater bandwidth paves the way for healthy
communities where educational opportunities abound, economic oppor-
45 Do More Than Show Me Money tunities extend to small and medium sized businesses, digital healthcare
By Bobbi Harris, Smart Water Smart City, LLC options are available, and community stability is ensured.
This issue tackles a variety of opportunities for broadband deployment
RESOURCE ARTICLES in rural America. Funding network infrastructure is increasingly seen as
a public/private initiative, as explained in CoBank’s article on page 9.
6 Beyond the Digital Divide: How Regional Providers Will
Partnerships with new players such as electric cooperatives pave the
Thrive on Digital Disruption
way for community development, as outlined in Cathy Cash’s article on
By Francisco Sant’Anna, Ciena
page 28, and the story of OzarksGo on page 18. Initiatives on the state
15 Keeping the Friday Night Lights Bright level are on the rise, as noted on page 35 highlighting the work of the
By Jeff Babbitt, Fujitsu NC Broadband Infrastructure Office. Broadband deployment is on the
move, and manufacturers are focused, as you’ll see in this issue, on prod-
18 Broadband in Rural America: ucts and technologies designed to maximize investments and minimize
OzarksGo Declares It’s About Time! operational expenses.
By Juniper Networks
Shirley Bloomfield and Lisa Youngers offer great insight in their articles
31 Maximizing Investment and Reducing Operational Expense as they discuss the value of broadband deployment in America. Ms.
By Tom Coburn, ADVA Optical Networking Youngers states that “High speed broadband, which is propelled by fiber
deployment, is the great equalizer for many communities throughout
32 An Update on Rural Broadband Funding Opportunities
America, especially those in rural areas.” And Ms. Bloomfield expresses
By Alyson Moore, Corning
hope in her comment that “Funding rural broadband is an extremely
39 Build Your Best Network Under CAF II important endeavor. I am so encouraged by recent developments that
By Javier Lopez, ADTRAN indicate these efforts are a shared national interest.”
49 Rural Fiber Distribution TAP Architecture
By Fritz Amt, CommScope
Randy Turner
Editor, Skinny Wire
WALKER NEWS Director, Marketing Communications
Walker and Associates
17 Walker Recognized by Juniper Networks 336-731-5246
46 In the Spotlight randy.turner@walkerfirst.com
50 Upcoming Events SWEditor@walkerfirst.com
Letters to the editor may be sent to SWEditor@walkerfirst.com Opinions expressed by contributors and commentators do not
Skinny Wire is a bi-annual publication of Walker and Associates, Inc. necessarily reflect the views of Walker and Associates, Inc.
“Equal Opportunity/Affirmative Action Employer m/f/d/v” Skinny Wire | Summer 2019| http://www.walkerfirst.com/literature/skinny-wire/ 3Funding Rural
Broadband –
A Frontline
View
By Alan Fitzpatrick
CEO
Open Broadband, LLC
Our ISP was formed to address the need
for broadband in underserved commu-
nities, and as a result, have a frontline
view of building in rural areas. Using the
options listed below we’ve been success-
ful in funding fixed-wireless broadband
deployments across 11 counties in North
Carolina.
County and Town RFPs
This has been one of the most effec-
tive ways of matching funding to local Public-Private-Partnerships (PPP) almost $10M in broadband grants in 2019
needs. An example is the Orange County For communities lacking the budget to (https://governor.nc.gov/news/governor-
NC Broadband Initiative (https://www. establish grants, an effective approach cooper-announces-nearly-10-million-
orangecountync.gov/963/Orange- has been to align purchasing with ISPs expand-internet-access). These grants
County-Broadband-Initiative). Rural parts willing to deploy in areas of need. We’ve are expected to be funded again in com-
of the county were in desperate need partnered with towns by providing ser- ing budget years. The grants have restric-
for broadband service. Orange County vice to Town Halls, Fire Departments, tions that the first two categories above
established a $500,000 grant and issued Police Stations, Water Treatment Plants, did not. Restrictions included: Must be a
an RFP to service providers to build out in Public Works, Parks and Rec, and other Tier 1 county, funds can only be used in
these specific areas. Other communities buildings. This revenue source helped census tracks that did not already have a
followed the RFP path, and we are fortu- justify our network build. 10 Mbps x 1 Mbps option, and requires
nate to be working in NC counties such matching funds. We are thankful that
as Wayne, Alexander, Franklin, Granville, Towns and Counties introduced us to the state established the program and
and Vance, and towns including Angier rural airports previously limited to DSL we were delighted to be awarded grants
and Sanford. service. One of these had an emergency in Caswell and Vance counties. Virginia
medical unit that could not function well announced a similar state broadband
This funding is usually lower than state without broadband. Funding public Wi-Fi grant program called VATI (https://www.
and federal programs. However, coun- zones has provided a dual benefit of dhcd.virginia.gov/virginia-telecommuni-
ties and towns specifically target areas improving service in a community, while cation-initiative-vati).
of need, and are bottom-up driven. Need providing much needed revenue to an
isn’t based on FCC viewpoints and broad- ISP. Startup centers such as coworking USDA ReConnect Program
band maps but rather on the needs facilities are another area where local This federal grant/loan program (https://
expressed by the residents and busi- need can help provide funding to a new www.usda.gov/reconnect) has a $600M
nesses. In my view, no one understands ISP. Simply by redirecting purchase deci- pool. This option is larger than those
the problems better than the people sions, towns and counties can influence listed above, but there are significantly
living in the community. Targeted grants, investment in areas of need. more hurdles to pass. The program is
that are managed locally and focused on not intended for startup companies, and
specific areas of need in the community State Grants requirements include 3-years of audit-
is a winning combination. North Carolina established the GREAT ed financials. 5-year budget projections
broadband grant program that awarded down to the line item, and there is a long
About the Author: Alan Fitzpatrick is the CEO of Open Broadband, an ISP providing broadband internet service to underserved communi-
ties. Prior to Open Broadband, Alan had 20-years management experience in the Telecommunications and Software industries, including
COO of DC74 Data Centers, COO of VoIP Services at ACN Inc., Sr. VP of Engineering for US LEC Corp, and founder and CEO of two software
companies.
Alan is a promoter of a gigabit internet infrastructure in North Carolina, and co-founded Charlotte Hearts Gigabit, widely credited with
attracting Google Fiber to Charlotte. He later joined as a co-founder of NC Hearts Gigabit. Alan is also an Adjunct Professor and enjoys teach-
ing entrepreneurship and technology courses for Central Michigan University and Johnson and Wales University.
Alan has an MBA from Vanderbilt University and a B.S. in Industrial Engineering from Purdue University.
4 Skinny Wire | Summer 2019 | http://www.walkerfirst.com/literature/skinny-wire/“ . . . no one understands work infrastructure is to obtain custom-
ers who will pay for service. While the
efforts.
• Many grant opportunities are not
the problems better than PPP approach mentioned above includes startup friendly, instead favoring
a touch of this, other methods we’ve established companies. I question:
the people living in the used include promoting an early sign-up Why reward companies who main-
community.” form with a small deposit to gauge inter- tain status quo? Why not invest in
est. Much like a Kickstarter campaign, an companies who are willing to solve
list of other items to complete. In our ISP can see if there is enough demand in the problem, regardless of how long
view this program is designed for large, an area to make a business case decision they have existed?
well-established incumbent providers to deploy. Areas in need do not require • The state/federal programs do not
with a staff of people who have months much marketing effort. A few Facebook stimulate competition. They do the
of time to collect all the data and fill out posts, combined with a website signup opposite, preventing funding to
the forms. For a younger company, it form and encouragement to share on areas that have 10 Mbps x 1 Mbps
might make sense to hire a grant con- Nextdoor.com and social media plat- service. Perhaps funding broadband
sultant, assuming one already has the forms can result in hundreds or thou- overbuilds in these areas is exactly
information available. The large ISPs will sands of signups. It’s worked for us. what is needed to improve service
likely have no trouble applying for this to residents.
program, but the program is burden- Closing Frontline Observations • Funding rural broadband is pos-
some to small ISPs. • The more decisions that are made sible. Let’s continue to make it hap-
locally the better. The users under- pen.
Customers stand the pain and are not lim-
The best way to fund deployment of net- ited by maps, politics, or lobbying
A Quick Review of the FCC
Household Broadband Guide
By Randy Turner
Director, Marketing Communications
Walker and Associates
A variety of resources are available from age American household members. affordability and availability of advanced
the FCC on their website, https://www. This, by default, places most homes in broadband services.
fcc.gov. One example is their Household the Advanced Service category, which is
Broadband Guide, which provides insight above the FCC definition of broadband, Thankfully attention to bridging this divide
into the minimum download speed a currently defined as 25 Mbps download through policy changes, legislative focus,
home needs in order to support house- and 3 Mpbs upload. and responses to industry lobbying efforts
hold use of broadband. Although this is on the increase. Closing the gap between
resource is currently posted, it indicates The reality of the digital divide appears basic definitions and actual consumer
a vast gap between US consumers of perpetuated by standards that are out of broadband usage is an ongoing challenge
broadband and federal guidelines. touch with current technology. Aging adults, for state and federal legislators. Rural
minorities, rural Americans, and lower- Americans stand to gain new opportunities
The chart to the right is from the FCC income citizens are least likely to have as lawmakers attempt to reconcile these
Household Broadband Guide. Note that broadband services at home, due to both disparities.
it assumes a maximum of 4 users or
devices at one time. Current research Light Use Moderate Use High Use
indicates US households have an aver- (Basic functions: (Basic functions (Basic functions
age of 10 connected devices, and that email, browsing, plus one high- plus more than
number is projected to increase to 50 basic video, VoIP, demand applica- one high-demand
devices by 2021. Internet radio) tion: streaming application run-
HD video, multi- ning at the same
The site differentiates between Basic, party video con- time)
Medium and Advanced Services as fol- ferencing, online
lows: gaming, telecom-
• Basic Service = 3 to 8 Mbps* muting)
• Medium Service = 12 to 25 Mbps
• Advanced Service = More than 25 1 user on 1 device Basic Basic Medium
Mbp
2 users or devices Basic Medium Medium/
By this standard, there would be few, if at a time Advanced
any, homes where Light Use applies.The
3 users or devices Medium Medium Advanced
basic combinations of email, web brows-
at a time
ing, high-definition video consumption,
social media posting and viewing, gam- 4 users or devices Medium Advanced Advanced
ing and music streaming likely means at a time
multiple devices among the 2.53 aver-
Skinny Wire | Summer 2019| http://www.walkerfirst.com/literature/skinny-wire/ 5Beyond the Digital Divide:
How Regional Providers Will Thrive on
Digital Disruption
By Francisco Sant’Anna
Senior Industry Advisor for Regional Services Providers
Ciena
The Connect America Fund Phase II (CAF- high share of service adoption in the versial) may bring new competition for
II) auction will provide $1.49 billion to residential and businesses customers broadband where customers had no
connect over 700,000 locations in 45 reached by their networks. prior choice, pushing regional incum-
states over the next decade. The 103 bents to reposition their value proposi-
service providers who won the bid will “The same market forces tion. It will also create a massive demand
undertake a demanding task of extend- for mobile backhaul bandwidth.
ing their networks to provide fixed that are disrupting the
broadband services to those unserved or
underserved regions. Nevertheless, the
business of global tech Cybersecurity concerns are changing
how technology services are bundled
logistical challenges of laying infrastruc- giants will inevitably and delivered. Tier-1s are integrating
ture in such remote areas are just the
beginning of an uphill journey to build a
come for the regional Managed Security Services (MSSs) in their
connectivity offerings for business cus-
sustainable business practice, attractive providers.” tomers (firewall, IPS, IDS, Anti-DDoS, end-
to both users and investors, in a scenario point security). Such bundling practices
of radical transformations. Yet, with the Tight business plans have a small margin may become the market norm, as CIOs
right mindset and by prioritizing invest- for errors, and those service providers increasingly indicate data protection/
ments that enable nimble adaptation will need to make safe and smart technol- integrity and business continuity as a top
through evolving demand, these provid- ogy bets to succeed in an environment of priority for their offices. Keeping com-
ers may not only survive, but thrive on extreme changes. Emerging digital tech- petitive in business services will require
the digital disruption of communication nologies and business models are trans- regional providers to develop a new skill
services. forming industries at an increasingly fast set to offer MSSs, which may involve vir-
pace. There is no business immune to tualizing security network functions.
Aiming at bridging the digital divide, FCC’s the ongoing digital disruption, but there
CAF-II auction will subsidize network is certainly no sector as impacted by it as IoT will reshape several industries, bring-
expansion for the 103 winning bidders Technology Services. Large service pro- ing vast opportunities to service provid-
in 713,176 rural areas where high-quality viders have been reinventing their busi- ers. Being industry-specific, it will require
broadband would not be economically nesses to remain relevant and profitable, new vertical expertise to sell and serve
feasible otherwise. Fifty-three percent of but how will this disruption impact the business customers, and new partner-
this targeted market will have access to edges of the market? The same market ships to integrate devices and analytics in
download speeds of at least 100 mega- forces that are disrupting the business the services package. It will also prompt
bits per second, and 99.75 percent will of global tech giants will inevitably come new technologies, network topologies,
get a minimum of 25 Mb/s—2.5 times for the regional providers. Although computing architectures, systems, and
the previous minimum standard for the these companies may not have exten- service practices that may redesign the
CAF program. sive resources available to understand way many technology service providers
and plan for the new challenges, they are organized.
The interest from service providers in can benefit from a much more agile
the program was significant, leading to decision-making process, moving swiftly Big Data and Analytics will mean new
competition that allowed for a 70 per- and effectively to explore the numerous ways for smart regional service providers
cent reduction in the initially planned new opportunities and mitigate threats. to add value to local businesses.
subsidies of $5 billion over ten years. This “Emerging digital technologies and busi- Edge Computing will boost the value of
means that these providers will be bear- ness models are transforming most their operational sites as potential com-
ing the noble endeavor of taking connec- industries at an increasingly fast pace.” puting facilities, though it may attract
tivity to low-density areas with a much outsiders of the tech industry to provide
smaller amount of support than initially 5G will be a game-changer, transforming this scattered infrastructure.
expected. To make their business profit- the market way beyond mobile network
able, they will need to be extremely cost- operators. It will enable new parameters The Digital Experience users enjoy at
effective in their approach to infrastruc- for user experience, boost IoT and drive cloud-based online services is becoming
ture and operations, and at the same new applications. Fixed-mobile access a pre-requisite for any service offering,
time have attractive offers to secure a (for which cost viability is still contro- and providers will need to evolve to
6 Skinny Wire | Summer 2019 | http://www.walkerfirst.com/literature/skinny-wire/deliver the visibility, control, and flexibil- years for NFVO and network automa- mable infrastructure (preparing for pro-
ity that becomes the qualifying minimum tion to become widely viable for mid-tier gressive degrees of automation as they
to be considered by customers. networks. However, there is a lot that become viable), and facilitate intelligence
regional service providers can do now to (software and analysis tools). These crite-
And the consolidation of the cloud cul- prepare for the upcoming disruption. ria will not only extend investments’ lon-
ture of Everything-as-a-Service creates gevity, future-proofing them for a wider
myriad new areas for service providers The key is to develop adaptive capa- range of scenarios, but also empower
to position themselves as regional tech- bilities to quickly and flexibly respond to providers to be nimble and position for
nology leaders integrating far beyond demand and competition shifts, being growth.
connectivity. able to seize the numerous opportuni-
ties that will come to those who are Want to thrive on digital disruption?
How to thrive on digital disruption equipped. Every investment must be Prepare to adapt!
Wherever trends may lead the market, made in tune with the guiding principle
it is certain that deep changes are com- of adaptability.
ing to regional service providers, and Francisco Sant’Anna is Senior Industry Advisor for
the key to survive and win in this mar- For the CAF-II winning bidders, there is Regional Services Providers. In this role, he leads
ket will be the ability to adapt. There a great opportunity to start these new Ciena’s initiatives in helping these providers evolve
their networks to meet their current and future
is no miraculous solution for service deployments with flexible and future-
business challenges through hardware, software,
providers to address these transforma- proof technology choices for their access, and services technologies.
tional challenges, and it gets even harder aggregation, and core expansions. The
for smaller companies, as many helpful future is built now. Start by calibrating Francisco is a Telecommunications Engineer with
innovations take time to become cost- RFPs to prioritize open solutions (broad- a Master in Telecommunication Systems, with 20
effective for regional deployments. For ening alternatives to interoperate and years of experience in the service provider industry.
example, it may still take a couple of manage in the future), favor program-
Electric Co-ops and Expanded Rural
Broadband Access
By NRECA
High speed internet access is a key ingre- network, allowing the co-op and mem-
dient to a healthy 21st century rural bers to adopt emerging energy manage-
economy. Not only is broadband impor- ment technology. These newly connected
tant to the people who live in rural co-op communities are proven to create
America, it is also vital to the electric co- jobs, attract new employers, and directly
ops that serve them. jump start local economies. “Now, nearly 100
The Federal Communications Commission
estimates that 34 million Americans lack
The convergence of new technology and
partnerships has made rural broadband
electric co-ops
access to high-speed internet. The vast
majority call rural America home and live
deployment more achievable than ever.
As electric cooperatives work to bring
are reinvesting
in electric co-op service territories. broadband to rural America, some have
formed innovative partnerships with
in rural America
For more than 75 years, America’s electric
cooperatives have powered local econo-
local telecom companies and others. Yet
despite these advances, the high cost of
by bringing
mies across 56 percent of the nation. As
times and technology change, broad-
rural broadband deployment remains
the biggest obstacle to successfully clos-
high speed
band has become an indispensable part
of electric utility operations – extend-
ing the digital divide. Rural service terri-
tory is often rugged and remote, which
internet access
ing beyond the electric meter and into
household energy management. These
drives up the cost of deployment. At the
same time, there are fewer customers to
to rural homes,
state-of-the-art energy efficiency services
increasingly require access to high speed
defray the costs. businesses and
internet. In order to close the digital divide for the
34 million Americans who lack broad-
schools.”
Now, nearly 100 electric co-ops are rein- band internet access, an expanded com-
vesting in rural America by bringing high bination of federal grant and loan fund-
speed internet access to rural homes, ing through USDA programs is essential.
businesses and schools. This connectiv- President Trump’s infrastructure propos-
ity serves two key purposes: bridging al and the Farm Bill present two oppor-
the digital divide for co-op members and tunities to secure that necessary financial
enhancing the co-op business operation backstop.
Skinny Wire | Summer 2019| http://www.walkerfirst.com/literature/skinny-wire/ 7A Better
Connected
Experience
Visibility Insight Quality
ADTRAN partners with broadband service providers to optimize and enhance
the connected experience by improving network visibility, insight and quality
to grow customer satisfaction. Internet the way it should be.
adtran.com/SubscriberExperience
AD10687C Copyright © 2019 ADTRAN Inc. All rights reserved.
8 Skinny Wire | Summer 2019 | http://www.walkerfirst.com/literature/skinny-wire/By Sarah Tyree
Vice President of Policy & Public Affairs
CoBank
Modern, high-speed broadband is a criti-
cal issue for those of us who live and
work in rural communities – or rather,
the issue is the lack of access to this vital
communications network.
In today’s world, broadband access has
become one of the most important tools
for driving economic growth for busi-
nesses and communities, and deliver-
ing a high quality of life to residents.
In the same way that society would
expect decent, affordable rural housing
to include access to water, electricity
and phone service, in today’s technology- “Without this type of ongoing financial support, no
dependent world, it should also include temporary financing method such as loans, loan
access to affordable broadband. Rural
schoolchildren should not have to go to guarantees or one-time grants, will be sufficient to
libraries or school parking lots to access
the internet needed to complete their
deploy broadband across rural areas and throughout
homework assignments, rural business- the entire country.”
es should be enabled to capitalize on the
global marketplace, and rural residents operate all aspects of the systems that returns of delivering cutting-edge tech-
should have the capability of obtaining enable rural broadband access, including nologies to sparsely populated areas
critical medical care remotely that is sim- wireless, wireline, cable, fiber transport have led many communications com-
ply not available to them in their distant and data centers, and we’re also sup- panies to focus on urban and subur-
locations. porting electric distribution cooperatives ban areas, where the larger population
who are entering the broadband arena. translates into scale and therefore bet-
The broadband network that serves As of December 31, 2018, our loans to ter economics. As a result, our rural
farmers, rural hospitals, rural businesses rural infrastructure customers across the residents are missing the benefits of the
and rural residents is the same network U.S. reached $21.4 billion, and included technological revolution many of us take
that connects large cities and urban resi- rural electric cooperatives, rural water for granted. This is why a digital divide
dents. Content and applications that are and waste water systems, and rural com- exists in this country, where rural citizens
accessed via the internet are hosted in munications providers. are not provided the same advanced
data centers typically located in urban communications services as their urban
areas. This same data is accessed by Challenges in Rural Areas counterparts.
both rural and urban residents by wired The key challenges of deploying afford-
or wireless networks, both of which are able broadband throughout the United Universal Service Fund
dependent on a broadband backbone to States are the high cost and limited To eliminate the digital divide, there is a
serve rural America. return on investment. If companies could role for the federal government to assist
earn a profit building out broadband to rural broadband, just as there is a role
As a lender to rural infrastructure, all Americans, they would already have for it to support the federal highway
CoBank understands both the challenges done so. system. The Universal Service Fund (USF)
and the policy implications of committing is successful in supporting affordable
to deploy affordable broadband through- In addition to the high costs associated telephone service, and is now transi-
out the United States. CoBank is a nation- with constructing broadband infrastruc- tioning to a similar role for broadband
al cooperative bank with a mission – ture in rural areas, there are also high service. The public policy of providing a
established by Congress – to provide costs associated with maintaining and cost-recovery mechanism to connect all
dependable credit and other value-added upgrading these networks to accommo- Americans is not a new concept and its
financial services to agriculture and rural date growth of data traffic. The broad- results serve the greater good.
infrastructure businesses. CoBank has band network is a dynamic infrastruc-
been delivering on this mission for more ture, and frequent technological advanc- The communications industry continues
than a century, and has been financ- es warrant upgrades and regular capital to evolve rapidly and the federal regu-
ing rural communication businesses and spending. latory framework to keep up with this
being a partner in their growth for more change is also evolving. Although the USF
than 30. Our communications customers The higher cost and lower long-term is supporting the deployment of broad-
Cont’d on page 11
Skinny Wire | Summer 2019| http://www.walkerfirst.com/literature/skinny-wire/ 9The FCC is planning to expand rural uses a 150MHz slot in the 3.5GHz particular, it won’t be able to sup-
broadband with the CAF II program, spectrum, either for line of sight port advanced applications such as
which provides “funding to local tele- links at 1Gbit/s, or for sharing 5G.
phone companies to subsidize the cost among users in a rural environ- • NFV and SDN. Network functions
of building new network infrastructure or ment. 5G wireless using mid-band virtualization (NFV) and software-
performing network upgrades to provide (2 to 6GHz) spectrum offers good defined networks (SDN) are new
voice and broadband service in areas reach and low atmospheric attenua- technologies to help replace closed
where it is lacking.” The program includes tion will soon become an option for network appliances with indepen-
requirements for access speed, latency, fixed wireless. dent software running on standard
usage and pricing. But as a rural broad- • Hybrid networks combine the above servers and switches. NFV and SDN
band provider, you should also be think- technologies to optimize band- power the development of innova-
ing more broadly about enhancements width and costs. For example, the tive services at record speed, and
to your network, and planning beyond customer access might use xDSL, enable deployment of these services
today’s applications. You should be think- PON, CBRS, or 5G (see below). The without changing the network infra-
ing about the future. Here are some backhaul might use fiber or point- structure.
questions to consider. to-point wireless.
How will your network support 5G
What are the connectivity options for What are the other new technologies deployments?
broadband in rural areas? your network should include?
CAF II funds network expansion for
Rural providers have a wide range of The telecom landscape is evolving, and broadband services, but 5G is looming.
choices for growing their network. that means you need to be on the look- Buildouts for 5G will need lots of fiber
• xDSL involves a tradeoff between out for relevant technologies to power in the ground, along with distributed
bandwidth and cable length. Low your network. Here are some hot new compute to support virtualized network
population density in rural areas technologies for consideration. infrastructure for 5G. Furthermore, a
means long cable runs, limiting the • Carrier Ethernet provides a low-cost recent ACG report (https://www.acgcc.
achievable DSL bandwidth. Modern and high-bandwidth access technol- com/wp-content/uploads/2019/05/
xDSL techniques such as vectoring ogy that is ideal for business ser- ACG-5G-Ready-TCO-2019.pdf) describes
have increased this bandwidth, but vices and mobile backhaul at speeds the benefits of a converged network
we are near the theoretical limit. up 100Gbit/s. for supporting 5G. “This paper presents
• Fiber provides much higher band- • Fiber monitoring. Without fiber the results of a TCO analysis comparing
width than copper, but at the cost monitoring, high-bandwidth ser- the economics of a converged IP/MPLS
of tens of thousands of dollars per vices are always at risk of disrup- transport network with more traditional
mile. Wavelength division multiplex- tion, often with significant negative dedicated networks. The results of the
ing passive optical network (WDM- impact on customers. As soon analysis demonstrate significant savings
PON) is an innovative concept for as service providers invest in a with an overall TCO savings of 62%,
access and backhaul networks that proactive solution that measures capital expense (CAPEX) savings of 60%,
can help lower the cost of fiber- the integrity of their fiber plant, and operations expense (OPEX) savings
based access. It uses multiple wave- they can diagnose faults and take of 66%.”
lengths over a physical point-to- immediate targeted action. This dra-
multipoint fiber infrastructure that matically shortens repair cycles and Your plans broadband expansion plans
contains no active components. avoids unnecessary truck rolls. should include support for 5G. Here are
• Fixed wireless technologies are an • Synchronization. Synchronization is some ideas:
option to lower costs, especially in a vital ingredient for a growing num- • More fiber. Plan fiber routes to sup-
the outer reaches of the network. ber of applications, and one that is port increased base station density.
Point-to-point links can leverage often overlooked in a packet-based 5G will achieve higher bandwidth
various spectrum bands. Citizens network. Without it, your network by having a lot more cells, which
Broadband Radio Service (CBRS) cannot achieve its full potential. In means a lot more base stations. All
10 Skinny Wire | Summer 2019 | http://www.walkerfirst.com/literature/skinny-wire/of these new base stations will need • Internet of things. IoT is becoming How will you design and deploy your
fiber access. That’s a big opportunity important in rural areas to support next generation network?
for additional revenue. agriculture, transportation, manu-
This is the real world, not a high school
• More sites. Consider creation of facturing, and other industries.
or college test. You don’t have to answer
next generation aggregation sites • Telemedicine. Telemedicine is
these questions on your own. The teams
that can support distributed com- a promising way to address the
at Walker and ADVA stand ready to help
pute for hosting 5G infrastructure. shortage of medical personnel in
you plan and deploy your next genera-
• Bigger backbones. Allocate extra underserved rural areas. But this
tion network. We can help you meet the
backbone fiber to support high only works if you have plenty of low-
demands for today’s subscribers, as well
bandwidth services – both for 5G latency bandwidth available.
as for next generation services – and help
and for the other services described • Gaming. Advances in gaming go well
you answer all those questions.
next. beyond Fortnite. Next-generation
games will bring in augmented real-
What other advanced services will
ity and virtual reality, both of which
your network support?
need fat pipes and distributed com-
Today, customers mostly use broadband pute resources.
services for web access, with streaming
How will your team gain the needed
video taking the lion’s share of the band-
skills to operate a next generation
width. But digital services are always
network?
changing. Here are some of the future
services that will be relevant for rural • Training. New technologies require
networks. new skills. Walker and ADVA can
• Managed security services. Security help in providing the training for
threats are growing daily, and your teams in these new areas.
addressing them is beyond the tech- • Hiring. You will need some new
nical capabilities of many custom- hires to augment your exiting staff.
ers. Managed security services are a The good news is that there are
very attractive way to close the gap many new graduates who have the
for small and medium businesses, needed skills in the areas of virtual-
as well as for government sites such ization and automation.
as schools and clinics. • Pilot projects. Training is good, but
• Managed VPN or SD-WAN for tele- hands-on experience is always the
commuters. Businesses need new best teacher. Small-scale pilot proj-
employees and using VPNs to sup- ects enable you to bring new tech-
port remote workers is a great way nologies in house, without trying to
to open the door to untapped talent boil the ocean.
in rural areas.
Cont’d from page 9
band, not all broadband users pay USF fees: if a consumer CoBank views the USF as an important public-private partner-
has only an internet connection and not a phone connection, ship, through which companies can leverage USF’s support
no USF fee is paid. Modifying the contributions to the USF is a to obtain private financing to serve rural America. We firmly
necessary step to keep it fully funded in order to connect all believe that a sustainable cost-recovery mechanism is impera-
Americans to broadband. tive to assist the financing of rural broadband. Without this type
of ongoing financial support, no temporary financing method
When a company explores how to provide broadband in a such as loans, loan guarantees or one-time grants, will be suf-
high-cost rural area, it analyzes the available support programs ficient to deploy broadband across rural areas and throughout
and determines whether they will assist in making the project the entire country. We cannot expect companies to deploy
viable. If the company determines the support is not reliable broadband in areas where there is no return on investment
and is subject to change, then the expansion plans are put on without a support program. We need dedicated federal invest-
hold. Since ment so every American, even in remote areas in rural America,
has access to broadband.
December 2011, the funding for the USF high-cost rural pro-
gram has been capped, so as more companies build out more CoBank welcomes the opportunity to collaborate with other
broadband, each provider is being reimbursed a lower rate entities that care about rural America in supporting USF to
each year. This has been a disincentive to making additional deploy broadband to rural America. As the report of the fed-
investments in high cost areas. eral Interagency Task Force on Agriculture and Rural Prosperity
highlighted, reliable and affordable high-speed internet e-con-
Over the past six years, the Federal Communications nectivity will transform rural America as a key catalyst for
Commission has rolled out modified USF programs known as prosperity.
the Connect America Fund to offer certainty to communica-
tion companies building in rural communities by providing ten Sarah Tyree is Vice President of Policy & Public Affairs at CoBank.
years of stable support. CoBank has seen an increase in invest-
ment due to this consistent level of resources.
Skinny Wire | Summer 2019| http://www.walkerfirst.com/literature/skinny-wire/ 11Is Your Network Ready For His
Next Big Idea?
His imagination knows no limits, and neither should his network.
Invest in next-generation services that will help transform his next “what if?” Evolve your network.
into an amazing invention. Transform the world.
Wherever you are with your network transformation, we can help. Our flexible, Discover how we can help
best-in-class performance and quality solutions address your current needs corning.com/
and easily evolve to meet future network challenges. community-broadband
© 2019 Corning Optical Communications. All rights reserved. CRR-1090-AEN / March 2019
12 Skinny Wire | Summer 2019 | http://www.walkerfirst.com/literature/skinny-wire/By Lisa R. Youngers
President and CEO
Fiber Broadband Association
June is an exciting time of the year for
Americans — it’s the start of summer,
speed counties.
• Early adoption of high speed broad-
“High speed
which means warm weather, sun, beach-
es and vacation. But my fellow fiber
band could reduce unemployment
rates by an average of 0.16 percent-
broadband, which
friends and I also look forward to June
because it is when we convene for the
age points per year.
• Counties lacking high speed broad-
is propelled by fiber
annual Fiber Connect conference. band have smaller populations and
population density, lower house-
deployment, is the
Earlier this summer, the Fiber Broadband
Association hosted our three-day confer-
hold income, and a slightly smaller
proportion of people with at least a
great equalizer for
ence in Orlando, Florida and welcomed
over 1,500 fiber industry professionals
high school diploma. many communities
and leaders from across the broadband
industry. The conference featured key-
These findings illustrate the need for
more high speed broadband, particularly
throughout America,
notes about the future of 5G, the digital
divide, the IoT, Smart Cities, Esports and
in rural communities, to drive econom-
ic growth and productivity. According
especially those in
more. All of this showed us one thing:
that fiber is what makes the difference
to the latest data from the Federal
Communications Commission (FCC),
rural areas.”
for our connected future. roughly 19 million Americans lack access
to high-speed broadband — and most of About the Author
These topics generated fruitful discus- them live in rural areas. This leaves them Lisa R. Youngers currently
sions and thoughtful conversations struggling to stay connected and unable leads the Fiber Broadband
about the potential for our fiber future, to take part in the opportunities available Association as its President &
CEO — the largest trade associ-
but it was the findings from a study to urban residents. People living in rural
ation in the Americas dedicated
released during Fiber Connect that excit- communities deserve the same access to all-fiber-optic broadband.
ed me the most. to fast, reliable broadband as citizens Youngers brings two decades of
living in urban areas. Without high speed communications experience to
Researchers from the University of broadband access, rural Americans are the Association ranging from wireline/wireless tele-
Tennessee at Chattanooga and Oklahoma at an unfair disadvantage in accessing communications, satellite and broadcast to state
State University investigated the impact economic, educational and healthcare infrastructure. Most recently, Youngers was CEO of
high speed broadband has on the work- resources. Nextlink Wireless, where she drove all operational,
technical and financial aspects of the business
force and found that high speed broad-
as well as M&A activity. Prior to leading Nextlink,
band reduced unemployment rates High speed broadband, which is pro- Youngers was Vice President and Assistant General
throughout Tennessee, especially in rural pelled by fiber deployment, is the Counsel of Federal Advocacy and Strategy at XO
communities. A major reason why rural great equalizer for many communities Communications where she led the company’s
communities have fallen behind urban throughout America, especially those in initiatives involving federal policy, operations and
areas is that they lack access to high rural areas. This research makes me technology. Before that, she served as Federal
speed broadband and other technolo- hopeful for our future because it shows Regulatory Counsel for General Communication,
gies, creating a troubling digital divide in the impact that fiber broadband access Inc. and MCI advocating on competition issues.
Youngers also served as Assistant Attorney General
our country. Here are some of the key can have on everyday people. Broadband
for the state of Minnesota as counsel to the Public
highlights from the study: creates jobs and provides unparalleled Utilities Commission and the Rail/Trucking Safety
access. It matters to communities and Board. Youngers is a member of the Minnesota
• In studying 95 counties in provides a world of difference. So when and District of Columbia Bars. She earned her
Tennessee from 2011 to 2016, we chose the theme of this year’s Fiber bachelor’s degree from the University of Wisconsin-
researchers found that access to Connect conference — Fiber: We Are the Madison and a JD from the Mitchell Hamline
high speed broadband can signifi- Difference — we did so to show our com- School of Law.
cantly reduce unemployment rates, mitment to making a positive difference
especially in rural communities. in the lives and communities all across
• Counties with access to high speed America.
broadband have an approximately
0.26 percentage point lower rate of
unemployment compared to low
Skinny Wire | Summer 2019| http://www.walkerfirst.com/literature/skinny-wire/ 1314 Skinny Wire | Summer 2019 | http://www.walkerfirst.com/literature/skinny-wire/
Keeping the Friday Night Lights Bright
Why Carrier Ethernet is the Best Choice for Evolving Your
Network
By Jeff Babbitt
Fujitsu Network Communications, Inc.
In many rural areas, groups of towns
are connected by a single network ring
or a small cluster of rings – a familiar
type of communications infrastructure
throughout the US. In these towns, local
high school football games often get
top billing, complete with video links
among the communities to live-stream
these games, usually on Friday nights.
Sometimes known as the “Friday Night
Lights,” these games are one of the most
common sources of traffic bursts on
rural and small local communications
networks. They are essentially mini ver-
sions of the fabled “Mother’s Day Events”
of traditional telecom.
Service providers in these rural commu-
nities have delivered connectivity primar-
ily via 10G for about the past ten years.
But today’s 10G networks are struggling
to keep pace with the rise of connected-
everywhere mobile and wireless services,
not to mention the rising trajectory in the coherent DWDM systems cannot handle to 200G. Additionally, the management
bandwidth requirements of new stream- 100G coherent channels. Therefore, an n system should utilize a future-proof soft-
ing video, audio, gaming, and imaging × 10G network will very likely have to be ware architecture based on SDN and
technologies. replaced in the future when 100G service open APIs.
demands arrive.
“ . . . the service Luckily, there is another approach that
With a new Carrier Ethernet system, a
service provider can add functionality to
provider is better can combine current needs with future
100G services, and still be economical.
deliver a range of new services, creating
more value through innovation. Offering
positioned for A high-capacity Carrier Ethernet tech-
nology is the most efficient and flexible
support for MEF compliant E-Line and
E-LAN services, this system enables more
future growth, since option to meet capacity needs today,
with room to grow for the future.
flexibility in size and class of service, and
has ample capability for both point-to-
a simple firmware Most deployments involve Carrier
point and multipoint-to-multipoint bridg-
ing. The upgraded transport system will
upgrade will Ethernet transport in a single 100G ring,
to provide a carrier-grade architecture
deliver sufficient capacity for now, with
a flexible upgrade path beyond 100G in
double the network with traffic management, network pro-
tection, and performance monitoring.
the future. This provides the best possi-
ble solution, striking the perfect balance
capacity to 200G.” This Ethernet approach can match the
capacity of n × 10G DWDM, and is more
between pay-as-you-grow scalability,
maximum efficiency, and optimum ROI.
economical than DWDM when the num- A 100G Layer 2 network offers greater
To make room for more traffic, service ber of 10G wavelengths grows beyond longevity in service provider networks.
providers will often deploy an n × 10G five channels. It will be easy to accom- When trying to “keep the lights on” for
DWDM network, but this may not be the modate 100G services by adding an n × the Friday night football game, a 100G
best option. An n × 10G DWDM architec- 100G coherent DWDM system with little Ethernet ring is the best choice.
ture will meet the near-term traffic needs, impact to the 100G ring. Additionally,
but is not guaranteed to handle the typi- with an Ethernet network, E-Line and
cal portfolio of services that providers E-LAN services can be offered instead
will need to deliver in the long term. of the optical services on the n × 10G
The primary reason is that almost all n × DWDM network. With this approach, the
10G DWDM networks use non-coherent service provider is better positioned for
technologies. 100G services will require future growth, since a simple firmware
a coherent optical network, yet non- upgrade will double the network capacity
Skinny Wire | Summer 2019| http://www.walkerfirst.com/literature/skinny-wire/ 15By Kristy Szabo
Director of Consulting
Carmen O’Neill, PE
Director of Engineering
Bree Conrardy
Engineering Staff
Vantage Point Solutions
The economic, wellness, and cultural based on Form 477 data from the FCC Funding entities need to be confident
consequences of the digital divide are that shows which areas are reported that, as an applicant, you know what
severe for those lacking adequate access as “served” with a specified broadband you’re doing and that you can get the
to broadband; and many programs are speed – i.e., 25Mbps Download/3Mbps proposed advanced services deployed to
available, or being developed, to help Upload. the areas you say you can. The engineer-
providers address the service gap in ing layout is how you make your case.
rural areas. Whether it’s a federal fund- When evaluating a funding program, it Once you’ve determined where, exactly,
ing program, a state grant, or something is imperative to understand the eligibil- you plan to deploy broadband, the net-
else – what can your operation do to ity criteria, which areas are eligible, and work design addresses questions such
optimize your chance of success in these what degree of service overlap – if any – as: How will you receive service from
programs? is permissible. Every other step depends upstream providers? What fiber architec-
on this, so it is an important strategic ture option is ideal for your company’s
While no two programs are exactly alike, consideration. specifics? Will it be buried, or aerial on
a company, community, or cooperative utility poles? In addition to painting a
can position themselves to succeed in Services that will be offered strategic vision of your network’s future,
competitive funding programs by plan- In addition to knowing where you are these answers determine the estimated
ning ahead and understanding the most proposing to build your broadband net- Capital Expenditures (CapEx) required to
common application requirements. work, you should also take into consider- complete the project.
ation what services and speeds you are
The two most significant components of planning to offer – various broadband Professional Engineering (PE)
any program are the engineering designs/ speed offerings, voice offerings, video Certification
capital expenditure estimates and the offerings, and package bundles, are all It’s also worth noting that, to be a
financial feasibility assessment; these key components of the overall network good steward of the funding program’s
are deeply entwined and serve as the business plan. It’s important to know this resources (public or private), they often
basis for other application components. when designing the network, as it can require a Professional Engineering certi-
However, they require considerable time impact the way the network will be engi- fication on the proposed network. This
and consideration to be developed effec- neered and the electronics necessary to certification ensures that the needs iden-
tively; which is why planning ahead (even support the proposed services. It will also tified for the area can actually be met
before a program is announced!) is often influence your marketing research and with the proposed design, within realistic
a critical factor in securing funding. pricing, and you will want to ensure you timelines and, perhaps the most critical
have adequate staffing to support each piece, within the project budget.
Eligibility Analysis service offered. These factors, in turn,
Generally speaking, grantors and lend- impact your financial projections and Financial Projections & Budget
ers are providing money to get broad- business plan. Financial projections for your operation
band to unserved or underserved areas. should include not only the anticipated
Where, exactly, are you planning to revenues and debt service on the capital
serve? Eligibility criteria varies from one Engineering layouts and Capital expenditures, but also operational costs.
program to the next, but is generally Expenditure estimates These include staffing, costs of provid-
16 Skinny Wire | Summer 2019 | http://www.walkerfirst.com/literature/skinny-wire/ing service, equipment costs and main-
tenance, marketing, insurance, taxes,
and professional fees such as engineer-
Walker and Associates
ing, legal, consulting, and accounting.
Financial projections will also incorpo- Recognized by Juniper
Networks
rate planned pricing models and esti-
mated take rates to forecast the finan-
cial strength of your proposed network
operation. By Tyson Philyaw
Sr. OEM Development Manager
In addition to the financial forecasts, Walker and Associates
many programs require a budget that
explains where the money for your proj- Earlier this year Walker and Associates received the AMER Partner of the Year,
ect will come from – including a required AMER Telco Partner of the Year and AMER Partner of the year – EAST Awards
match, if any – and what it will be used from Juniper Networks for performance during 2018.
for.
“Walker and Associates is pleased to be recognized by Juniper Networks. Juniper
Operational Experience & is known to have the foremost channel program within the telecommunications
Management Team Experience industry, and to be highlighted as a leader within Juniper’s channel is outstand-
Many applications require proof of oper- ing.” stated Tyson Philyaw, Sr. OEM Development Manager for Juniper Networks
ational or managerial experience. This is at Walker.
typically a statement indicating that you
have been successfully operational for a “Walker and Associates is excited for our future with Juniper. Our leadership
certain number of years, and your staff teams are actively engaged at the strategic level, allowing execution by the
is adequately prepared to operate the strongest sales teams supporting Commercial and the Federal Markets.” added
proposed network. Gus Vasilakis, Marketing VP at Walker.
Timelines Juniper stated that each of these awards indicates Walker’s outstanding overall
Funding programs frequently include performance and the company’s ongoing commitment to providing market-
tight deadlines for meeting the buildout differentiating, value-added services and resources to the service provider
requirements; and the penalties for miss- market.
ing them are often severe. For companies
unaccustomed to large network build-
outs, it’s easy to underestimate how long
each step takes – for instance, acquiring
pole permits is often a complicated and
lengthy process and fiber lead times can
fluctuate considerably throughout the
year and from year to year. Working with
a project manager experienced in under-
takings of similar size will help protect
your organization from these delays and
deadline threats.
Community Benefits
In addition to technical and financial
information, your application should also
clearly identify how the program’s dollars
will benefit the targeted community(ies)
by bringing broadband services to the
area. After all – the real goal is the eco-
nomic, wellness, and cultural benefits of
broadband in unserved or underserved
areas.
While individual funding programs may
open and close, keep in mind that you Pictured above, left to right: Christian Goffi, Partner Account Leader North America,
are making an investment for a 30-year Juniper; Tyson Philyaw, Sr. OEM Development Manager, Walker; Doug Wilson,
plan. If planned and built correctly, your Partner Account Manager, Juniper; Mark Walker, President, Walker; Miguel Adorno
network will require minimal mainte- - Field Marketing Manager, Juniper; Gus Vasilakis, VP Marketing, Walker; Clay Miller,
nance or alterations, and will benefit your Sr. Systems Engineer, Juniper
customers and operation for decades to
come. An impact that important deserves
thoughtful, strategic preparation – and
most importantly, planning ahead.
Skinny Wire | Summer 2019| http://www.walkerfirst.com/literature/skinny-wire/ 17You can also read