fibre to the home as a municipal infrastructure as a service
DESCRIPTION
A presentation for the Future of Networking session at the 2014 Cyber Summit by Lance Douglas, Chairman & CEO of the Lightcore Group, Inc.TRANSCRIPT
Lance G. Douglas | Chairman & CEO – Lightcore Group, Inc.
“Open & Shifting: The Future of Networking and Municipal Connections”
@Cybera #CyberSummit14 CROWDSOURCING INNOVATION | Banff, Alberta
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Meet Lance
CHIEF CUSTOMER CHAMPION / FOUNDER: Lightcore Group, Inc. DRIVING PASSION: making the world awesome for everyone. SINGULARITY OF CAREER FOCUS: creating mutual “Repeatable Successes”.
Born and raised in Calgary; aged in Quebec for short spell; father of two; husband of the most patient wife in the world; half Dutch by marriage.
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Meet Lightcore Group
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Our Journey Together, Today…
FTTH Municipal IaaS 01 | Perspective on Technology’s Role in Business
02 | User Experience is the Driving Force of Business
03 | Municipal Anti-Business Model
04 | What Exactly is the Municipality’s Product?
05 | The Last-Mile = First-Mile of Opportunity
06 | Municipal IaaS Traction
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00 | What is FTTH?
The Layer-1 infrastructure that connects a dwelling to a co re agg rega t i on / gateway point with fiber optic cabling. Or simply put: the currency plane for participation in the digital economy.
“Business is a for-profit expression of experience.”
01 | Perspective on Technology’s Role in Business .
“Technology is a set of tools, sometimes used by business to improve, or even define, an
experience.”
01 | Perspective on Technology’s Role in Business
“User Experience is the Driving Force of Business, Technology, and Lifestyles.”
02 | Perspective on Technology’s Role in Business
02 | Perspective on Technology’s Role in Business
Business
Technology
Better User
Experience
“The convergence of the two
== better
experience.”
.
03 | Municipal Anti-Business Model
Launching a Canadian FTTH Service Provider
Personal go-to-market approach was to micro-size concepts and deployment strategies of giant
telcos.
.
03 | Municipal Anti-Business Model
Launching a Canadian FTTH Service Provider
Personal go-to-market approach was to micro-size concepts and deployment strategies of giant
telcos. FAIL
03 | Municipal Anti-Business Model
Saving Grace #1 “A complex system that works is invariably found
to have evolved from a simple system that worked.”
- John Gall
03 | Municipal Anti-Business Model
Marketing a Canadian FTTH Service Provider Initial market evaluation and segmentation joy
was based on community love.
03 | Municipal Anti-Business Model
Marketing a Canadian FTTH Service Provider Initial market evaluation and segmentation joy
was based on community love. EPIC FAIL
03 | Municipal Anti-Business Model
What happened? We were expecting a 30% take-rate, based primarily on Community Love. The reality was that only 25% was of t h a t m i n d s e t , b u t correctly only 30% of those would make the purchase.
Community Love Reality
Apathy (75%)
Community: Yes, but No Thanks (17.5%) Community: Yes, And Yes (7.5%)
03 | Municipal Anti-Business Model
The Perception Paradox:
Most people don’t volunteer to pay
the gov’t for anything, and
locals see O-NET as a gov’t
program.
Municipal Government
Network Owner (non-profit)
Network Operator
(non-profit + RSP)
Retail Service Provider
(for-profit competitor)
Customer Citizen
03 | Municipal Anti-Business Model
Learned Axioms 1. “Municipalities are NOT businesses.” 2. “Citizens are not customers.”
03 | Municipal Anti-Business Model
Saving Grace #2 “Focus on the user and all else will follow.”
.
04 | What Exactly is the Municipality’s Product?
How, and why, does a municipality approach FTTH?
.
04 | What Exactly is the Municipality’s Product?
How, and why, does a municipality approach FTTH?
Citizens expect, or demand, opportunity.
.
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What is Municipal IaaS
Infrastructure-as-a-Service IaaS
“IaaS is the virtual delivery of computing resources in the form of hardware, networking, and storage services.” – Dummies.com “Municipal IaaS is the unified delivery of basic community resources in the form of roads, right or ways, and governance.” – Lightcore Group
05 | The Last-Mile = First-Mile of Opportunity
.
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Community = Opportunity
Community-as-a-Service
muni services
CaaS Platform-as-a-Service
muni systems
PaaS Infrastructure-as-a-Service
muni facilities
IaaS
05 | The Last-Mile = First-Mile of Opportunity
Typical Citizen Expectation of Municipal Involvement
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Cloud Analogy
CaaS
Permitting
Buses & Trains
Management
Taxi’s
Retail Shops
Data
Gas Service
Power Services
Global Travel
Municipality D
elivered
Priv
ate
Sec
tor
PaaS
Municipality M
anaged
Priv
ate
Sec
tor
Policies & Bylaws
Water Lines
Council
Traffic Signals
Sensors
e.g. Power Lines
e.g. Gas Lines
Airport
Malls
e.g. Power
Priv
ate
Sec
tor
e.g. Gas
OpCo
IaaS
Municipality O
wned
Social Tools
Landfills
Governance
Sewers
Roads
Water
RoW’s
NetCo RSP
Infrastructure & Governance Core
Interpretations of Governance and Infrastructure in
Action.
Management, services, and
delivery as stability.
05 | The Last-Mile = First-Mile of Opportunity
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05 | Last Mile == First Mile of Opportunity
Remove the Barriers
• for all citizens and businesses, existing and potential • for market competition to drive up quality and
reliability
Better by design • build for the future while addressing today’s needs • success is repeatable and transferrable among
muni’s.
No lock-in • abstraction entices innovation on all fronts: • portability is important for growth and scale of value
Lifestyle improvements
• unified open access paves the way for community wide services, and new ideas.
Better spend • muni’s need to upgrade their middle-mile infra-
structure already. • the IaaS approach is risk mitigation
.
What can that new telecom look like when infrastructure is a service?
The New Telecom “can”:
Answer the Domain 2.0 challenge
The New Telecom “can”: Deploy over M:M NetCo’s
The New Telecom “can”:
Finally, Be Agile,
Nimble, and Disruptive
“Open Access” requires market competition.
“Equal Opportunity” requires equal access.
The “Digital Economy” only favours
“Connected Communities.”
Being connected is beyond a critical service.
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06 | Municipal FTTH Traction
CANADA OPERATIONS Feasibility & Design Projects: >600K homes passed Major Market Launches: 2 to 3 in 2015 Major FTTH Announcement 1 still to come in 2014
US OPERATIONS I&R Jobs Growth: 100-200 Techs in 2015
KEY TAKEAWAY
Municipal Product == “Opportunity” Municipal Citizen == “Life”
Successful Municipal FTTH ===
“Empowering Opportunity for Better Lives”
Thank you for the opportunity to share!
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100% wireless technologies share a limited physical medium.
PLUS
Municipalities are density and economies of scale.
EQUALS
The inverse of both Metcalfe’s and Reed’s laws.
Appendix A: Municipal Wireless Barrier: B.I.R.D.S.
Barriers | Interference | Reflections | Distance | Security