Dark Fiber

Colby Synesael and Jon Charbonneau of Kaufman Brothers have recently produced the first really solid piece of research on dark fiber-based service providers in a long time - Rise of the Horizontally Aligned Fiber Company - A Newly Defined Opportunity

What is a horizontally aligned fiber company? 

In their own words:

"Horizontally aligned fiber companies focus almost entirely on IP based/data oriented services. We estimate a 15% three-year industry CAGR for revenue, more than double wireline telecom, based on increasing bandwidth demand for things such as 

1) low latency requirements, 
2) use of online video, and 
3) storage/SaaS/cloud computing. 

We also believe demand for fiber-to-the-tower backhaul service will accelerate demand, although its longer payback period has limited the amount of companies chasing this opportunity thus far."

How do horizontally aligned companies differentiate themselves? 

"Although IP-based/data oriented service is the fastest growing sub-segment for both horizontally and (typically larger) vertically aligned wireline service providers, many horizontally aligned companies have been able to differentiate their offer by focusing on 

1) unique routes, and 
2) unique locations. 

In addition, pricing for intra-city and regional-based fiber solutions has been relatively stable compared to legacy circuit switch pricing that is being impacted by increasing pressure from cheaper IP-based offers and the current economy."

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This is really good research because it focuses on the real issues and where the real value is found:

1) In dark fiber control - "ownership", either by IRU, or long-term lease. This controls underlying costs as well as provides for the control and flexibility of technology advances in DWDM, Ethernet and IP by those that actually deploy the network.
2) Unique routes! Physical diverisity is one thing, but also fiber type, age, count, aerial, or burried and points of interest that can actually be interconnected to along the way - such as NEW data center sites and, or towers (that currently have NO fiber)
3) Low Latency - this is very route specific, such as New York to Chicago and back, and VERY important to those that seek it as milliseconds equate to millions of dollars.

A few things of interest to note are that they see this is a NEW opportunity. Continue Reading...

Indonesian telco PT Indotsat president Harry Sasongko said that they will build a new 1300km subsea system called SKKL to be installed in cooperation with NEC. It will have four landing points on the islands of Tanjung Pakis (Karawang, West Java), Sungai Kakap (Pontianak, West Kalimantan), Tanjung Bemban (Batam), and Changi (Singapore).

For Island Nations this is equivalent to a major inter-national fiber build and given the size (population and geography) of the countries involved this is a big step. It is yet another example of how many Nations of the world have recognized the need for fiber to support broadband and the applications that ride above it and have a plan in motion to do something about it.

The five years following the completion of these subsea and National fiber systems will be quite an amazing time to watch IP applications be born, evolve and mature. Massive intellectual wealth will be created along with untold financial gains for those that invest TODAY in the proper fiber infrastructure to bring it all about.

Continue Reading...

I came across this blog mention of the recent Zayo announcement about them bringing fiber (and their transport services) to more towers in the USA.

"As 4G networks start coming online in force and people start using them to their fullest potential, those who are ready with fiber stand to make good money."
Rob Powell

Right on Rob Powell!

The USA is just catching on to what other countries (most of which are much smaller geographically hence their advanced state) already know - the future is mobile and people use a ton of data, so fiber is essential for backhaul from towers.

I was in London last week speaking at a unique conference - the Dark Fibre Convention. (yes they spell it fibre). The fact that they have such a gathering and it is the 2nd annual says a lot. A specific event around dark fiber would never happen in the US right now as no one really understands the issues/demand around the need for "new" dark fiber as it relates to wireless backhaul, Ethernet for the enterprise, Internet growth, etc. Many people in the US continue to believe that there is enough fiber already out there and no new routes ever need to be built.

Continue Reading...

"Chunghwa launched its fibre network in March 2004 and plans to cover 80% of the population with the infrastructure by the end of 2010"
 - Telegeography

Read the article

Granted, Taiwan is not the largest area in the world that needs to be covered by fiber, but the point is that they get it. Fiber is the way and they will be there.

Hopefully fiber deployment will have some per mile/per capita figure that equates to an increase in GDP formula that can be applied to all countries. If we then build an open, National Fiber Network we can apply that formula to ourselves and forecast how we will pay down our $1.4 Trillion deficit. 

No other infrastructure, or industry will be able to create enough value and expand faster than our spending and debt.
Continue Reading...

Central Africa has a broadband plan, based on a fiber core and being
funded by the World Bank with US$. From the fiber core running along an oil pipeline (right of way) regional networks will extend out to provide access
and services to multiple countries vastly improving Internet reach
and use.

The Democratic Republic of Congo, The Republic of the Congo, Equatorial Guinea, Gabon, Niger, Nigeria, Sao Tome & Principe and Sudan will all particiate and benefit from this design and overall project. It is yet another sign, and quite a significant one, that the rest of the world is moving forward with new fiber-based designs to improve connectivity and ultimately their way of life.

Central African Backbone project goes ahead
http://www.telegeography.com/cu/article.php?article_id=30398&email=text Continue Reading...

What is so crazy about a new, large dark fiber build? 

Apparently if you look around the world there is nothing crazy about it at all. Some countries may seem to not have enough fiber, others may already have plently, but require more fiber, newer fiber, or fiber in places that have not had it before. 

There are many reasons and many examples. Here are a few recent clips from planned and completed builds around the world

China Telecom and RCOM launch first terrestrial China-India cable

Reliance and Bharti aim to build new India-Bangladesh fibre links

CNT to invest USD300m this year

Antel Uruguay selects Alca-Lu consortium for submarine cable network

..yes it's submarine, but it's fiber, DWDM and 3.84 Tb...

BT confirms January 2010 date for FTTC commercial launch

MT to deploy second fibre-optic cable 

Telcotech fibre-optic cable to go live by year-end

Subsea, long haul, metro, to the home and beyond - new fiber is being built in just about every segement of the general network architecture and in just about every place in the world. 

Is it a "trend"?



No, it is logical... and necessary.


Continue Reading...

On August 12, 2009 I spoke on a broadband panel at the FCC in Washington DC. It was quite an experience. In all of my years of public speaking I have never been given a 3 minute time limit for my introduction. There is a lot to say about dark fiber, carrier hotels, data centers, Ethernet, wavelengths, wireless broadband, voice peering, etc.

Continue Reading...

Even Sri Lanka has a plan and they know it starts with fiber.

Seven bidders for national fibre backbone project


 

Allied Fiber has submitted reply comments to the FCC referencing others' National Broadband Plan submissions. 

The purpose of the reply comments is to help the FCC, NTIA and RUS see the inter-relationship between the various network segements of last-mile, middle-mile and backhaul and the respective organizations that address those components. 

The "solution" to the problem of rural broadband is not so easy when looking out from within the rural areas themselves. If they are viewed instead as part of a larger "network of rural islands" and how they are located between major served areas of broadband access the true way forward can be observed. 

The first round deadline of August 14th is getting closer. Hopefully there is enough time to get the correct message out and across to those that are making the decisions regarding fund allocation.
Continue Reading...

In keeping with our pursuit of creating a totally new physical layer architecture for communications networks Allied Fiber submitted its Comments to the FCC in the matter of a National Broadband Plan.

In Summary:

The national broadband plan first and foremost should be a blueprint for the widest possible deployment of the national broadband infrastructure over which all applications and content will ride. The infrastructure consists of three components -- last mile broadband networks to homes and businesses, middle mile facilities that connect last mile networks to the global Internet, and the Internet core, which consists of regional, national, and international networks that provide global Internet connectivity. The national broadband plan should address all three components and set forth the architecture as well as standard business model conditions for their seamless integration, operation, and use.

- Although this is overly Internet related, it is so due to the overwhelming popularity of the Internet and its seemingly synonomus relationship with the term and concept of broadband. Too much is made of the Internet and not enough of physical access to it for many to realize that the root issues are in the ducts and dark fiber. 

Beyond just realizing the critical role of the physical layer though is the absolutely essential component of the business model. Continue Reading...

I recently had the opportunity to sit down with Rich Tehrani in the TMCNET Newsroom in Norwalk, CT for a series of interviews. Aside from the general Allied Fiber update and a couple of specific announcements we also discussed the Dark Fiber Community, its purpose and function in the industry. 

The fundemental concept to grasp regarding this online community is that it is comprised of members that inter-relate. The community supports itself as the members support each other. They do not need to do so specifically in any way, but rather their presence gives the buyers what they seek - a resource to gain information about the entire ecosystem and not just one narrow component. 

Building a lit transport network on dark fiber and potentially incorporating microwave backhaul in to the equation is not such an easy task when you're dealing with 1000+ miles in one shot. Continue Reading...

The Allied Fiber team has spent some quality time in Washington DC over the past few weeks and it was time well spent. We had 18 meetings with Members of Senate and Congress and their staff covering the States and Districts that Allied Fiber will touch in our Phase 1 build-out between New York, Chicago and Ashburn, VA.

The mission was to get the message out - which we did. The message is that Allied Fiber intends on creating several short and long term jobs while enabiling everything that relies on communications networks by creating the critical fiber, tower and colocation infrastructure that communications networks need to succeed. 

We came to the meetings to deliver our message along with our NTIA Comments. Our summary is:

Over the past ten years, we have learned that knowledge is power. Broadband networks deliver knowledge.

Continue Reading...

Dark fiber is not the mystery it once was. The black magic is gone. Equipment vendors and new technology have made it a much simpler process to build and manage a layer 2 network and the word is out. The transport business is also growing as result for just as those that once bough leased lines now seek their own fiber there are others that once only bought IP transit and are now leasing layer 2 transport.

Continue Reading...

Allied Fiber spent most of the last week in DC visiting with Members of Congress, Senate and staffers. It was an interesting and educational experience to say the very least.

Allied Fiber has engaged Bingham McCutchen and ML Strategies to represent AF in Washington DC and assist us in getting the good word out. Things are going quite well and we submitted our formal comments to the NTIA by the April 13th deadline.

The timing and process of the NTIA, RUS and FCC Comments has been terrific for Allied FIber. Without us having to do anything several groups, associations, cooperatives and the like all throughout the US submitted for public record their perspectives on what is needed in the US to stimulate broadband awareness, use and deployment. With very few exceptions their Comments included provisions for "middle-mile" and "backhaul" requirements in order to link the last-mile networks with the major interconnection points in the Country. Continue Reading...