CANARIE Gigabit Internet to every citizen of Catalunya

1
CANARIE Gigabit Internet to every citizen
of Catalunya

• http//www.canarie.ca

Bill.St.Arnaud_at_canarie.ca
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Outline

• What will drive broadband new applications or
  competition?
• The Reality of Broadband
• Some possible models for Gigabit to the Citizen
• Customer Owned networks a new way of looking at
  networking
• Third Wave of the Internet

3
CANARIE Inc

• Mission To facilitate the development of
  Canadas communications infrastructure and
  stimulate next generation products, applications
  and services
• Canadian equivalent to Internet 2 and NGI
• private-sector led, not-for-profit consortium
• consortium formed 1993
• federal funding of 300m (1993-99)
• total project costs estimated over 600 M
• currently over 140 members 21 Board members

4
Historical Look at Rate of Growth of
Telecommunications
70
60
VCR
50
Cable TV
PC
40
Penetration of households

30
Telephone
20
10
0
0
5
10
15
20
25
30
35
40
45
50
55
60
65
70
Years after market introduction
Source Scientific American August 1993
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Penetration vs Price
16
14
12
10
Cost of per capita income
8
Telephone
6
PC
VCR
4
Cable
2
0
0
5
10
15
20
25
30
35
40
45
50
55
60
Penetration of Households
Source Scientific American August 1993
6
Real Cost vs Penetration
Telephone
VCR
Cable TV
PC
Internet?
Extrapolated from Scientific American data
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What will drive BroadbandApplications or
Competition?

• Once a technology is perceived as having broad
  utilitarian value, price, as opposed to features
  or applications drive penetration
• Every year the PC has new applications
• But the biggest driver for widespread PC in the
  home is low cost
• What is the driver for low cost?
• COMPETITION

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What is competition?

• Market structures and dynamic competition
  http//itech.fgcu.edu/faculty/bhobbs/bds7/sld001.h
  tm
• Herfindahl index sum of square of market share
• Monopoly 0.6
• Oligpoly 0.2 0.6
• Perfect Competition
• Current duopoly of DSL and Cable modems is
  actually a monopoly market
• Characteristics price increases and decreased
  service levels over time

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The reality

• Most people who have DSL and cable modems are
  quite satisfied
• Those who cannot get either are mad as hell and
  are not going to take it anymore
• So far there is only one identifiable application
  that requires speeds greater than 1.5 Mbps
• Downloading movies see www.Movielink.com
• Takes 4 hours to days to download one MPEG movie
• DVD movie in excess of 5 GigaBytes may take days
• Next generation of DSL and cable modems will only
  have bandwidth capacity up to 50 Mbps
• There is no business case for FTTH with current
  telco centric business models
• Trapped by take up economics

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A growing trend

• There is a clear trend in all formerly monopoly
  services to move to competitive services
• Electrical distribution systems
• Separation of transmission costs versus power
  costs from competitive suppliers
• Gas distribution systems former regulated
  monopolies (unbundling is well underway)
• Telecom is the last bastion of monopoly operation
  where services and infrastructure are provided by
  same company
• Government policy makers are going to have
  increasing input on future broadband access
  technologies to insure competition

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Why government intervention?

• Private sector competition in an open competitive
  level playing field is the best vehicle for
  producing innovation and lowering costs.
• As much as possible governments should not
  intrude into the marketplace.
• Sometimes government intrusion in the marketplace
  is warranted if there are significant benefits to
  the economy and society where otherwise to do
  nothing would be to do harm
• Bridges displace private sector ferry service
  operations
• Free trade disrupted business plans of many
  private sector companies
• Opening up of long distance competition disrupted
  business plans of incumbent telcos
• Governments have also have a critical role to
  balance off interests of private property owners
  versus social benefits delivery of enabling
  infrastructure such as electricity, telephone,
  cable, etc

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How to introduce competition

• Open Access, Structural separation or
  Facilities based competition?
• Road ways are examples of competition through
  structural separation while parallel railways are
  examples of facilities based competition
• To date telecom regulators have focused on
  facilities based competition and open access
• Facilities based competition has been very
  successful in the long haul
• Open access has been the alternative solution for
  the last mile
• But has had poor track record
• Mistaken belief that wireless can compete
  effectively with fiber
• If fiber is a natural monopoly, particularly in
  last mile suburban areas, then structural
  separation maybe more important than facilities
  based competition

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One Possible Model

• Municipal Condominium Fiber Network using fiber
  ROW and fiber facilities facilitated by municipal
  government
• Governments partner with private sector to build
  condominium fiber networks to all public sector
  buildings
• Government achieves social goal of affordable
  bandwidth to all public sector buildings
• Condominium fiber allows many competitors to own
  strands of fiber into the neighbourhood
• Cost of construction is shared amongst all
  participants
• Structural separation between ownership of fiber
  cable and ownership of individual strands
• But facilities based competition between owners
  of individual strands
• A change from the traditional telecom model where
  value of services is enhanced because of monopoly
  control of infrastructure

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The need for ADco

• Lawrence J. Spiwak, COMMUNICATIONS WEEK
  INTERNATIONAL, Opinion US Competition Policy --
  The Four Horsemen of the Broadband Apocalypse
  (01 April 2002).
• http//www.phoenix-center.org/commentaries/CWIHors
  emen.pdf
• PHOENIX CENTER POLICY PAPER NO. 12 Why ADCo? Why
  Now? An Economic Exploration into the Future
  Industry Structure for the "Last Mile" in Local
  Telecommunications Markets. pdf file
• http//www.phoenix-center.org/wps.html

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Municipal Condo Architecture
Fiber Splice Box
Carrier Owned Fiber
School board or City Hall
Central Office For Wireless Company
Cable head end
Telco Central Office
Condominium Fiber with separate strands owned by
school and by service providers
Colo Facility
School
School
802.11b
Average Fiber Penetration to 250-500 homes
VDSL, HFC or FTTH
Business
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What is condominium fiber?

• Several next generation carriers and fiber
  brokers are now arranging condominium fiber
  builds
• IMS, QuebecTel, Videotron, Cogeco, Dixon Cable,
  GT Telecom, etc etc
• Organizations such as schools, hospitals,
  businesses, municipalities and universities
  become anchor tenants in the fiber build
• Each institution gets its own set of fibers on a
  point to point architecture, at cost, on a 20
  year IRU (Indefeasible Right of Use)
• One time up front cost, plus annual maintenance
  and right of way cost approx 5 of the capital
  cost
• Fiber is installed and maintained by 3rd party
  professional fiber contractors usually the same
  contractors used by the carriers for their fiber
  builds
• Institution lights up their own strands with
  whatever technology they want Gigabit Ethernet,
  ATM, PBX, etc
• New long range laser will reach 120 km
• Typical cost is 25,000 (one time for 20 years)
  per institution

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Lanaudière
Sorel-Tracy
Lionel-Groulx
Montreal Public Sector Condominium Networks
Marie-Victorin
Rosemont
Montmorency
Maisonneuve
Ahuntsic
Édouard-Montpetit
Bois-de-Boulogne
Vers Québec
St-Laurent/Vanier
Champlain
Vieux-Montréal
Gérald-Godin
Dawson
John-Abbott
André-Laurendeau
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Halifax Condo Fiber Build
Private fibre optic network 12-15 km 350,000
build 150,000 engineering Links all major
universities, hospitals, research centers and
some schools Connects to CAnet4 at Nova Scotia
GigaPOP
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South Dundas
IROQUOIS
MORRISBURG
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ORION
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RISQ Fiber Network
Network
450 Km
OC-12
MAN
Scale 100 Km
250 Km
Dark fiber
Leased bandw.
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Level 3 provides dark fiber for California
Research Network
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Villages Branches

• Quebec Government to provide 75m funding to help
  schools, businesses and municipalities acquire
  condo fiber networks
• Private sector to build and manage condo networks
• Individual point to point strands within cable
  are owned by institutions through 20 year IRUs

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Condo Fiber Costs - Examples

• Des Affluents Total cost 1,500,00 (750,000 for
  schools)
• 70 schools
• 12 municipal buildings
• 204 km fiber
• 1,500,000 total cost
• average cost per building - 18,000 per building
• Mille-Isles Total cost 2,100,000 (1,500,000
  for schools)
• 80 schools
• 18 municipal buildings
• 223km
• 21,428 per building
• Laval Total cost 1,800,000 (1,000,000 for
  schools)
• 111 schools
• 45 municipal buildings
• 165 km
• 11,500 per building

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Typical Payback for school(Real example des
affluents north of Montreal)

• Over 3 years total expenditure of 1,440,000 for
  DSL service
• Total cost of dark fiber network for 75 schools
  1,350,000
• Additional condominium participants were brought
  in to lower cost to school board to 750,000
• School board can now centralize routers and
  network servers at each school
• Estimated savings in travel and software upgrades
  800,000
• Payback typically 8 16 months
• Independent Study by Group Secor available upon
  request

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Reduction in the number of servers
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Big Cost Saving in VoIP for schools

• Many schools are using dark fiber to enable VoIP
  telephones to each teachers desk
• Also free phones in hallways for kids to all kids
  in other scholl
• With dark fiber only cost is the one VoIP phone
  itself
• VoIP gateway to PSTN is located at school board
  office
• Most teachers have never had a telephone in their
  classroom
• Has a bigger impact than multimedia,
  tele-learning etc
• Schools are ripping out old copper telephone
  systems and leaving one copper telephone for
  emergency purpose
• For more details http//www.canarie.ca/press/publi
  cations/pdf/workshop99/schweikhardt.pdf
• But allows exciting new learning tools for
  schools - Laval

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Benefit to Cities

• If city builds and owns conduit can be revenue
  generator
• Yet saves carriers money
• Accelerates opportunity for information society

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Condo fiber for Business

• Significant reduction in price for local loop
  costs
• No increase in local loop costs as bandwidth
  demands increase
• Ability to outsource LAN and web servers to
  distant location as LAN speeds and performance
  can be maintained over dark fiber
• Access to lower cost competitive service
  providers at carrier neutral hotels
• New entrants cannot afford high cost of building
  out their own fiber networks
• Examples
• Colgate-Palmolive build in Cincinnati
• Nortel, Cisco, Govt depts in Ottawa
• Lehman Brothers in NY
• Ford in Detroit

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Benefits to Carriers

• For cablecos and telcos it help them accelerate
  the deployment of high speed internet services
  into the community
• Currently deployment of DSL and cable modem
  deployment is hampered by high cost of deploying
  fiber into the neighbourhoods
• Cable companies need fiber to every 250 homes for
  next generation cable modem service, but
  currently only have fiber on average to every
  5000 homes
• Telephone companies need to get fiber to every
  250 homes to support VDSL or FSAN technologies
• Wireless companies need to get fiber to every 250
  homes for new high bandwidth wireless services
  and mobile Internet
• It will provide opportunities for small
  innovative service providers to offer service to
  public institutions as well as homes
• For e-commerce and web hosting companies it will
  generate new business in out sourcing and web
  hosting

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BOEING BUILDS PRIVATE NATIONWIDE OPTICAL NETWORK

• Boeing awarded an estimated US20 million
  contract to Nortel Networks to build a private
  nationwide optical network based on DWDM and next
  generation SONET. Plans call for the deployment
  of OPTera Long Haul 1600 Optical Line Systems and
  OPTera Metro 3500 Multiservice Platform in
  multiple cities across the country.
  http//www.nortelnetworks.com/corporate/news/newsr
  eleases/2002c/07_23_02_boeing.html

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The Future -CAnet 4?

• Funded by Govt of Canada for 110m now fully
  operational
• A network of point to point condominium
  wavelengths
• Universities and researcher own and control their
  own lightpaths or wavelengths and associated
  cross connects on each switch
• All lightpaths terminate at switches where
  condominium owner can manage their own portion of
  the switch
• Owners of wavelengths determine topology and
  routing of their particular light paths
• Condominium owner can recursively sub partition
  their wavelengths and give ownership to other
  entities
• Wavelengths become objects complete with
  polymorphism, inheritance, classes, etc Object
  Oriented Networking

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Customer Owned Networks

• The customer owns the infrastructure (dark fiber,
  switches and wavelengths) while the carrier
  provides the service and network management
• Relieves the carrier of huge capital cost of
  infrastructure and gives customer greater
  flexibility in choice of service provider and
  control of the network
• Very similar parallel to evolution of computer
  industry from the centrally managed time share of
  the 1960s to the customer owned mini-computer of
  the 70s and the PC of the 80s
• Today telecom is largely a service industry much
  like time share computing of the 60s
• Asset based telecom puts customer in control and
  ownership of the network
• Asset based telecom started with the same people
  who brought you the Internet our universities
  and research centers

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CAnet 4 Architecture
CANARIE
GigaPOP
ORAN DWDM
Carrier DWDM
Edmonton
Saskatoon
St. Johns
Calgary
Regina
Quebec
Winnipeg
Charlottetown
Thunder Bay
Montreal
Victoria
Ottawa
Vancouver
Fredericton
Halifax
Boston
Chicago
Seattle
New York
CAnet 4 node)
Toronto
Possible future CAnet 4 node
Windsor
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Whats next

• Customer owned fiber/wavelength networks liberate
  the customer to use new applications and create a
  whole new business sector liberated from the
  artificial constraints of the current telecom
  business model leading to the
• The Third Wave of the Internet

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The three waves

• The first wave of the Internet consisted
  primarily of text and data services such as
  e-mail and FTP.
• The second wave was the web which improved ease
  of use and facilitated the transfer of images,
  sound and video.
• The third wave is the integration of
  applications, p2p networking, open source,
  distributed computing enabled by next generation
  web services, semantic web and high speed
  networks

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Todays Network
The network is subservient to the computer
The application is tightly bound to the OS
Network
Application
Application
User
User
OS
OS
The network is a mechanism for applications to
communicate with each other
Data
Data
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Third Wave Network
Application and data exist on the network and are
uncoupled from any specific machine or location
Third Wave
Third Wave
Network
OS
OS
The computer is subservient to the network
Application and Data
Third Wave
OS
Data
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What is the Third Wave?

• Before the Web on-line information was only
  available through a small number of information
  providers who charged high fees
• Compuserve, Dialogic, etc
• The Web allowed millions of creators of
  information to make it easily accessible to all
  others at very low cost, bypassing the
  information middleman
• The Third Wave proposes to extend the WEB
  paradigm to processes, applications and content
• Third Wave is about creation of tools and
  applications (i.e. services) in variety of fields
  such as eLearning, eBusiness, eScience, eHealth,
  etc that can make these services easily available
  to all others
• At there are millions of web sites, there will be
  millions of Third wave services
• Elements of the Third Wave
• Open Source, Web services, Semantic web,
  Distributed computing, Peer to peer, Grids,
  Agents, Java Spaces, Creative Commons
• Third Wave is more than web services as typified
  by Microsoft .Net or IBM Websphere
• These are equivalent to the old Compuserve model
  with portals and ASPs

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Third Wave and science

• Science used to about test tubes, wet labs and
  big instruments
• But increasingly science is moving to networks
  and computers
• Science is now longer bound by bricks and mortar
  or geography
• NSF has announced Cyber Infrastructure
  initiative
• https//worktools.si.umich.edu/workspaces/datkins/
  001.nsf
• DOE SciDAC Scientific Discovery through Advanced
  Computing
• http//www.er.doe.gov/feature_articles_2001/august
  /SCIAC/SciDAC_announcement.htm
• Recognition that more and more science is network
  and computationally based
• Grids using web services will be foundation of
  this new research methodology
• Some early examples.

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Virtual Observatory

• http//www.us-vo.org/
• Discovery process will rely on advanced
  visualization and data mining tools
• Not tied to a single brick and mortar location
• Will cross correlate existing multi-spectral
  databases petabytes in size
• Web services will integrate data and applications

No new telescopes or radio dishes. Just big
networks interconnecting large databases
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What is eScience?

• The ultimate goal of e-science is to allow
  students and eventually members of the general
  public to be full participants in scientific
  discovery and innovation.
• Uses advanced high speed networks like CAnet 4
  and CANARIEs Third Wave which integrates new
  concepts in distributed computing, peer to peer
  file sharing and web services
• Will allow increasing number of computationally
  or networked research experiments to be
  seamlessly integrated with the computer
  capabilities of thousands of PCs located at our
  schools and in our homes.
• High performance computers located at
  universities can be seamlessly integrated with
  eScience distributed computers at school across
  CAnet 4
• Some early primitive examples

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FightAIDS_at_Home

• Scientists at The Scripps Research Institute
  (TSRI) are using computational methods to
  identify drugs that have the right shape and
  interaction characteristics to fight diseases
  such as AIDS.
• Once such candidates are identified, they can be
  synthesized in a laboratory, tested according to
  FDA guidelines, and released as prescription
  drugs to benefit the public.
• Such computations require a vast number of trial
  dockings, testing variations in the target
  protein and the trial drug molecules

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Folding_at_home
http//www.stanford.edu/group/pandegroup/Cosm/ htt
p//members.ud.com/vypc/cancer/

• This "virtual supercomputer" uses peer-to-peer
  technology to make unprecedented amounts of
  processing power available to medical researchers
  to accelerate the development of improved
  treatments and drugs that could potentially cure
  diseases.
• Rapid new discoveries in cancer research

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Climate Prediction

• Predict future climate due to greenhouse affect
• Distribute climate model to thousands of PCs
  worldwide
• www.climateprediction.com

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ALTA Cosmic Ray eScience

• Collaborative scientific research project
  involving the University of Alberta Center for
  Subatomic Research and over 50 high schools
  across Canada in the area of cosmic ray
  detection.
• Teachers and students actively contribute to the
  physics research while learning about an exciting
  area of modern science. 
• Distributed computing at schools will be required
  to analyze data from sensors in near real time

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Neptune eScience Grid

• Joint US-Canadian project forundersea dark fiber
  network off west coast of USA and Canada
• Undersea network will connect instrumentation
  devices, robotic submarines, sensors, under sea
  cameras, etc
• All devices available to students and researchers
  connected to CAnet 4 and Internet 2 networks

• Distributed computing and data storage devices on
  CAnet 4 and Internet 2 will be used to analyze
  and store data

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Neptune eScience

• Fish Surveys
• Earthquake Research
• Underwater Laboratory with remote submarines and
  cameras

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Faulkes Telescope

• Provide UK schools with access to a research
  class telescope in Hawaii
• Provides an exciting resource for teachers to use
  via the Web
• To provide a real-time experience of astronomy,
  through live use of a telescope
• To allow students to participate in real research
  programs, mentored by professional astronomers
• Provides other public interest groups, such as
  amateurs, access to high quality astronomical
  data
• http//www.faulkes-telescope.com/

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Gigabit to the Home
Colo Facility with RPON
ISP E
ISP C
ISP B
ISP D
Customer owns fiber strand all the way
to Neighborhood Node
Colo Facility
Splice Box
X
X
Up to 15 km
School with dual connections
864 strands
Municipal Condominium Fiber Trunk
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Self Organizing Networks- RPON
Aggregator
Switch
ISP
Passive Optical Splitter
Neighborhood Node
Active laser at customer premises
Customer Controlled or Owned Fiber