Merit Network Last Mile Fiber By many means necessary…

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Merit NetworkLast Mile Fiber

By many means necessary…

Jim MoranOutreach Coordinator

jimmoran@merit.edu

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Merit Network Overview... Founded 1966

The Michigan Education Research Information Triad (MERIT) formed in 1966 because “significant benefits might be gained from sharing computing resources via an electronic linkage…”

A non-profit, 501(c)3 corporation governed by Michigan’s state universities NSFNET backbone; joint project with IBM, and MCI, 1988-1992 Expanded beyond governing members, 1990’s MichNet Statewide Dial-in Network, 1992-2007 Among the first GigaPOPs, 1999 Facilities-based network, 2000+

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Merit Network Overview...

A non-profit, 501(c)3 corporation governed by Michigan’s state universities

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Merit Network Overview... A non-profit, 501(c)3 corporation governed by Michigan’s state universities; among the 53%

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Merit Network Overview... A non-profit, 501(c)3 corporation governed by Michigan’s state universities; among the 53%

No state subsidies

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Merit Network Overview... A non-profit, 501(c)3 corporation governed by Michigan’s state universities; among the 53%

No state subsidies

No mandate for state educational organizations to connect through Merit

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Merit Network Overview... A non-profit, 501(c)3 corporation governed by Michigan’s state universities; among the 53%

No state subsidies

No mandate for state educational organizations to connect through Merit

Operate on a for-fee basis; compete with commercial ISPs

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Merit Network Overview... A non-profit, 501(c)3 corporation governed by Michigan’s state universities; among the 53%

No state subsidies

No mandate for state educational organizations to connect through Merit

Operate on a for-fee basis; compete with commercial ISPs; eligible E-Rate provider

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Merit Network Overview... A non-profit, 501(c)3 corporation governed by Michigan’s state universities; among the 53%

No state subsidies

No mandate for state educational organizations to connect through Merit

Operate on a for-fee basis; compete with commercial ISPs; eligible E-Rate provider

Market share 12 0f 13 state universities 75% other highered orgs ~50% K12s Libraries, government, health care

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Relevant Michigan Telecom Law... Sec. 307. (1) Educational institutions shall have the authority to own, construct, and operate a telecommunication system or to purchase telecommunication services or facilities from an entity capable of providing the service or facility.

(6) Except for a state institution of higher education, if an educational institution has excess capacity, it may sell the excess capacity subject to subsection (3) and to all of the following:

(a) The amount of capacity sold shall not exceed 25% of the institution’s total capacity.

(b) The capacity shall not be sold below the total service long run incremental cost of the provider of basic local exchange service in the service area of the educational institution. If there is more than 1 provider in the service area, the educational institution shall use the lowest total service long run incremental cost.

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Relevant Michigan Telecom Law... Sec. 307. (1) Educational institutions shall have the authority to own, construct, and operate a telecommunication system or to purchase telecommunication services or facilities from an entity capable of providing the service or facility.

(6) Except for a state institution of higher education, if an educational institution has excess capacity, it may sell the excess capacity subject to subsection (3) and to all of the following:

(a) The amount of capacity sold shall not exceed 25% of the institution’s total capacity.

(b) The capacity shall not be sold below the total service long run incremental cost of the provider of basic local exchange service in the service area of the educational institution. If there is more than 1 provider in the service area, the educational institution shall use the lowest total service long run incremental cost.

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Facilities-based BackboneNetwork Initiative

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Facilities-based Backbone Network Initiative

WSU

Southfield

UMD

Wiltel

SBC Frame Relay

SBC Frame Relay

SBC Frame Relay

UM

MSU

WMU

MiLR -GR

MiLR-KZ

Oakland

Flint

Saginaw

Midland

CMU

Ithaca

Muskegon

GVSUAllendale

GVSUIGrand Rapids

TCITY

GVSU

Jackson

Lansing

Marshall

BSPOP

Verizon Frame Relay

Holland

EMU

LSSUNMUMTU

710 N. LakeshoreChicaogo

Doral Plaza Chicago

EquinixChicago

Level 3

Lansing Fiber Ring

Detroit Fiber Ring

Cogent

Qwest

Grand RapidsFiber Ring

VerizonFrame Relay

Alpena

10 Gbps

Fiber Gigabit

100 Mbps Lease

OC12c

OC3c

DS3

Ethernet Switch

Router

ATM Switch

ChicagoFiber Ring

VerizonFrame Relay

Abilene /Internet 2

Peers

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Facilities-based Backbone Network Initiative

GOVERNING MEMBERS ONLY

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Extending the Facilities-based Network…

WSU

Southfield

UMD

Wiltel

SBC Frame Relay

SBC Frame Relay

SBC Frame Relay

UM

MSU

WMU

MiLR -GR

MiLR-KZ

Oakland

Flint

Saginaw

Midland

CMU

Ithaca

Muskegon

GVSUAllendale

GVSUIGrand Rapids

TCITY

GVSU

Jackson

Lansing

Marshall

BSPOP

Verizon Frame Relay

Holland

EMU

LSSUNMUMTU

710 N. LakeshoreChicaogo

Doral Plaza Chicago

EquinixChicago

Level 3

Lansing Fiber Ring

Detroit Fiber Ring

Cogent

Qwest

Grand RapidsFiber Ring

VerizonFrame Relay

Alpena

10 Gbps

Fiber Gigabit

100 Mbps Lease

OC12c

OC3c

DS3

Ethernet Switch

Router

ATM Switch

ChicagoFiber Ring

VerizonFrame Relay

Abilene /Internet 2

Peers

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Extending the Facilities-based Network…

Leverage K12 Fiber

Leverage governing member infrastructure

Leverage the backbone infrastructure

“Finance” required lateral construction

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Leveraging K12 Fiber…

WSU

Southfield

UMD

Wiltel

SBC Frame Relay

SBC Frame Relay

SBC Frame Relay

UM

MSU

WMU

MiLR -GR

MiLR-KZ

Oakland

Flint

Saginaw

Midland

CMU

Ithaca

Muskegon

GVSUAllendale

GVSUIGrand Rapids

TCITY

GVSU

Jackson

Lansing

Marshall

BSPOP

Verizon Frame Relay

Holland

EMU

LSSUNMUMTU

710 N. LakeshoreChicaogo

Doral Plaza Chicago

EquinixChicago

Level 3

Lansing Fiber Ring

Detroit Fiber Ring

Cogent

Qwest

Grand RapidsFiber Ring

VerizonFrame Relay

Alpena

10 Gbps

Fiber Gigabit

100 Mbps Lease

OC12c

OC3c

DS3

Ethernet Switch

Router

ATM Switch

ChicagoFiber Ring

VerizonFrame Relay

Abilene /Internet 2

Peers

Corrunna

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Leveraging K12 Fiber...K12s too found cost control & extensibility in facilities-based, self-provisioned networks within county intermediate units and large districts; physical plants contained within districts

Merit IRU’d/leased “excess capacity” and integrated into backbone

Collaboration/partnership with these K12s strengthened relationships

Provided opportunity to lease capacity within districts to reach other members

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Leveraging K12 Fiber... Muskegon ISD Baker College Muskegon Muskegon Community College WAN site for GVSU

Jackson ISD Jackson Community College Foote Hospital Spring Arbor University

Calhoun ISD Kellogg Community College Albion College Olivet College Willard Public Library Battle Creek

Genesee ISD Mott Community College Baker College Flint Kettering University University of Michigan Flint

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Leveraging K12 Fiber...

Ottawa ISD Davenport University Holland Hope College

Washtenaw ISD Washtenaw Community College Eastern Michigan University

Gratiot-Isabella ISD (MMNET) Alma College Montcalm Community College Montcalm ISD Mid-Michigan Medical

Shiawassee ISD Baker College Owosso

Southfield Public Schools Lawrence Technological University

Saginaw Public Schools Davenport University Saginaw

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Leveraging governing member infrastructure...

Wayne State University (fiber) University Prep Charter School

Northern Michigan University (wireless) Gwinn Community Schools

Wayne State University (wireless) Baker College Allen Park University of Detroit Mercy, Internet and WAN Marygrove College

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Leveraging the backbone...

Metro Detroit Ring College for Creative Studies Detroit Community High School ORION link

Southfield-Oakland University-Flint Baker College Auburn Hills MSU Management Troy

Metro Grand Rapids Ring Grand Rapids Public Schols Aquinas College

Metro Lansing Ring Grand Rapids Public Schols Aquinas College

OADM

Metro Ring

member site

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Financing lateral construction... One-time capital expense (i.e., Baker)

Merit “financing” from strategic loan fund

Framing cost in terms of annual access fees (comparable to lease-line fees)

USF eligibility and cost reduction after contract term

1 yr contract 2 yr contract 3 yr contract 4 yr contract 5 yr contract 7 yr contract100,000 50,000 33,333 25,000 20,000 14,286

10,000 5,000 3,333 2,500 2,000 1,4291,200 1,200 1,200 1,200 1,200 1,2001,500 1,500 1,500 1,500 1,500 1,500

$112,700 $57,700 $39,367 $30,200 $24,700 $18,414600 600 600 600 600 600

$113,300 $58,300 $39,967 $30,800 $25,300 $19,014

$3,300Annual Access Fee (future contracts) After End of Contract Term:

Total Annual Circuit Fee

XAF Annual Access fee (rollup of all above)AA access admin

FMF Fiber Maintenance Fee (lateral)FMF Fiber Maintenance Fee (ring)FAF Fiber Administration FeeLFCC Leased Fiber Construction Cost

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Facilities-based connectionsEnable….

higher-bandwidth, lower-cost WAN connections for multiple, geographically distant campuses

Flint

Owosso

Auburn Hills

Mt. Clemens

Cass City

Allen Park

Muskegon

Cadillac

Jackson

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WSU

Southfield

UMDSBC Frame Relay

SBC Frame Relay

UM

MSU

WMU

Oakland

Flint

Midland

CMU

Ithaca

FSU

GVSUAllendale

GVSUIGrand Rapids

Jackson

Lansing

Marshall

BSPOP

Muskegon

Lansing Fiber Ring

Detroit Fiber Ring

Flint

Owosso

Auburn HillsAllen Park

Mt. Clemens

Cadillac

Cass City

Saginaw

Muskegon

Jackson

Facilities-based connectionsEnable….

higher-bandwidth, lower-cost WAN connections for multiple, geographically distant campuses

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Facilities-based connectionsEnable….

higher-bandwidth, lower-cost WAN connections for multiple, geographically distant campuses distance education among Merit members

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Facilities-based connectionsEnable….

higher-bandwidth, lower-cost WAN connections for multiple, geographically distant campuses distance education among Merit members shared administrative systems among Merit members, particularly K12s & Libs

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Facilities-based connectionsEnable….

higher-bandwidth, lower-cost WAN connections for multiple, geographically distant campuses distance education among Merit members shared administrative systems among Merit members, particularly K12s & Libs joint research among Merit members

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Facilities-based connectionsEnable….

higher-bandwidth, lower-cost WAN connections for multiple, geographically distant campuses distance education among Merit members shared administrative systems among Merit members, particularly K12s & Libs joint research among Merit members opportunities for Merit members to be content providers to other members

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Questions...