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Helping Rural Communities to Build Super-Fast Broadband Networks - meeting the challenges! Mark Jameson - Lancaster University Network Services (LUNS) John Colton - Lucid Optical Services Ltd - Fibre GarDen CIC Alternative Title: FTTH the Hard Way © fibre GarDen 2012

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Helping Rural Communities to Build Super-Fast Broadband

Networks- meeting the challenges!

Mark Jameson - Lancaster University Network Services (LUNS)

John Colton - Lucid Optical Services Ltd

- Fibre GarDen CIC

Alternative Title: FTTH the Hard Way© fibre GarDen 2012

The Need for SpeedNielsen’s Law

© fibre GarDen 2012

The Rural Broadband Problem

So what?

Source Suvi Linden

How do we compare?

Source C HoldenFTTHC

Technologies

© fibre GarDen 2011

Ø ADSL

Ø Wireless

Ø White-space

Ø FTTC

Ø FTTH

Ø Satellite

What are the physics of an MPF?

l (MPF = Copper 'phone line)l Shannon–Hartley theorem gives us the

theoretical maximum capacity of the MPF:-

l C=B log2 (1+S/N)C= channel capacity (bps), B = bandwidth (Hz), S = received signal power, N = noise power

l Bandwidth is dependent upon insertion loss and loop impedance (products of cable and joint properties)

l A typical MPF should be capable of supporting up to something like 30Mhz (Considerably more if less than 200m).

l Throughput is dependent upon the modulation and encoding scheme. Graphic from Henrik Almeida, Ericsson

xDSL encoding range vs throughput – the theory

Why doesn't xDSL work well in rural areas?

l Line lengths are longer, often much longer

l The exchange Line only problem

l Lower subscriber numbers = lower return on investment

l “Ya canna change the laws of physics”

Security caught Scotty outside Uhura's bathroom with the Xray vision device – again.

What FFTC might look like for me

There will still be many problems.......

Plus - many lines known to be poor and very longAsymmetry is becoming a problem – along with time critical services (VoIP) etc.

Alternative 1. Wireless Broadband

l Typesl Mobile Data

− LTE, 4G

l Fixed Data− ISM band

2.4Ghz, 5.8Ghz− WiMAX− WhiteSpace

l Fixed Links

Advantages Disadvantages

Quick and cheap to set up, Flexible Slower, Less reliable, Interference

Alternative 2 – Satellite

l It is available now.l ka band generation

is an improvementl Still relatively

expensive per Mbl Long RTTs a

problem e.g. Skype not possible

Advantages Disadvantages

Near 100% coverage, commercial packages available now

Lower bandwidth, latency problem, traffic charges, contention will grow.

Alternative 3 – Fibre to the Home

l It's not just about broadband, it can deliver much morel Phonesl Telemedicinel Property values

l Rural Community projects have some key advantages.

Advantages Disadvantages

Massive B/W potential, Reliable, Future Proof. Green

High(er) capital costs, Wayleaves required, some disruption due to digging

FFTH capital cost comparison

Item Telco CommunityWayleaves $$$ “In kind”

Power provision £10k £2k

Facilities location £100k £5k

1Km dig £44k £15k

Backhaul £50K £150K

Why community FTTH / FTTP?• Future-proof• have to do it for ourselves

– or be left behind

• Community can reduce costs• Community can deliver greater take-up• Telco value multiplier is x2• Community value multiplier is x40• fits with ‘big society’ ethos

© fibre GarDen 2012

Community ProposalØ to create a future-proof infrastructure (Nielson’s Law)

Ø ensure network is available to 100% of the community

Ø user choice of bandwidth and ISP – open access

Ø spare fibres – at least 2 fibres per home/premise

Ø support for mobile operators, 4G roll-out & emergency

services

• means FTTH for a deeply rural community• before FTTH exists in most UK towns• a challenge!

© fibre GarDen 2012

Bringing superfast broadband through fibre-optic to the communities of

Garsdale and Dentdale

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© fibre GarDen 2011

M6

Dentdale Garsdale

Length 10 miles 7 milesPopulation 675 202Households 407 94Businesses 194 43(of which farms) 64 20

Where the heck?

Sedbergh

Fibre GarDen Area

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Ageing!

Intelligent (?)

Ambitious !

Characteristics of our community

UK funding for broadband• Delivered by BDUK• £530M pot of cash to distribute• identified ‘white’ areas – racist?• Cumbria 96.2% ‘white’ – biggest in England• £17,130,000 allocated to Cumbria as pilot area• Cumbria County Council the receiving body• CCC added £6M plus CCC contracts…• pot worth over £40M• still not enough for a telco…

© fibre GarDen 2012

Fibre GarDenØa BDUK technical pilot projectØRural Community Broadband Fund announced

by DEFRA = £20MØinvited to apply for RCBF superfast broadband

RDPE grant by BDUK & DEFRAØapplication currently in progressØstate-aid issues a concern for BDUK & DEFRAØencouraged to innovate(?)Øissues: backhaul, ‘last 10%’ rule & risks

© fibre GarDen 2012

What is superfast broadband?

• telco definition…up to…? – not a lot!• BDUK definition?

– >24 Mb/s• what does that mean?

– 25 Mb/s is superfast in the UK– 24 Mb/s is not!

• European definition?– at least 30 Mb/s– Ultra-fast defined as 100 Mb/s+

© fibre GarDen 2012

Fibre GarDen Assets

Farmers

Political support

& wellies!

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Youngsters trained in cable pulling

Finance• Fibre GarDen need £600,000• RCBF grant £300 per premise = £150,000• Target £250,000 share issue• Remainder £200,000 loan or ethical fundShare Issue:

• 80% community investors

• 20% external investors

The Deal:

• no dividend likely

• share value set

Why???© fibre GarDen 2012

EIS benefits

• government provide 30% tax rebate • Invest £10,000• Receive £3,000 back from taxman• £10,000 shares has cost £7,000• £7,000 at risk?

– company bust with no assets– 50% of loss written off against tax– Worst case loss is 35% = £3,500

© fibre GarDen 2012

EIS benefits

• 3 yr b&b investment cycle yields 14% annual interest• Tax-free! Plus capital gains tax free!

© fibre GarDen 2011

Cash repaid

Invested

Cash invested Cash investedCash invested

Tax rebate

Effective cost of investment

Effective cost of investment

Nominal share value Nominal share value Tax rebate

Tax rebate

Years

Shares cashed-in

Shares cashed-in

Why Community Broadband?

© fibre GarDen 2012

to deliver:

• local knowledge

• effort – planning, admin & labour

• wayleaves – free of charge

• finance – funding benefits residents

• service take-up

• to sustain & regenerate rural areas

Who’s involved?• community residents:

– business leaders– accountants & administration roles– farmers– fit & able volunteers

• Specialists– network design & planning– notice serving– installation specialists (FIA AIS)– maintenance specialist (FIA AIS)

© fibre GarDen 2012

The Backhaul problem

Circumstances mean there is little (or no) choice. Can't shop around for a better deal – even where there are fibre runs

Common problem for all projectsNeed to look at this creativelySeek alternativesUse licensed band, or natural paths of “least

resistance” (canals, disused railways etc)Collaborate with other projects and/or local

businessesTake advantage of “Public Sector Network”

where available

Delivery of a high capacity link to community POP from telco (on their terms) is expensive

circa £250k capital plus £100kpa

Peering – what is it?Carrier networks are joined at

points around the globe where the ASes have agreed to meet

Here the ASes allow the traffic to hop from one AS to another

These are “peering” points (or internet exchanges)

Getting to an internet exchange and peering there is far better than being a “customer” of an ISP, or taking Internet transit.

After retiring from Starfleet Scotty filled his time in by hanging around the women's gym... Peering

Open Access – what does it mean?

Open Access means many ISPs can offer services over the infrastructure

More complex to set up but offers:-

Customer ChoiceOffload support burden

It becomes a wholesale network

PON vs Active

Many regard Passive Optical Networking as the “one true way” to deliver FTTH

But, due to the (small) number of subscribers, on most rural projects a fully active network is feasible and has some advantages

The trouble is PON vendors often offer the best deals

Potential Investors?

• Register your interest at:

www.fibre-GarDen.co.uk

© fibre GarDen 2012

fibre is our future© fibre GarDen 2011