The HOW-TO guide to building your own fiber optic network An ISP perspective Robert ProulxYves Le Borgne IMS Consultants incRISQ.

The HOW-TO guide to building your own fiber optic network

An ISP perspective

The HOW-TO guide to building your own fiber optic network

An ISP perspective

Robert ProulxRobert Proulx Yves Le BorgneYves Le Borgne

IMS Consultants incIMS Consultants inc RISQ RISQ

RISQRISQ Rationale for private networksRationale for private networks Private network, a business decisionPrivate network, a business decision The HOW-TO guideThe HOW-TO guide Some factsSome facts examplesexamples QuestionsQuestions

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About RISQAbout RISQ

Le Réseau interordinateur scientifique Le Réseau interordinateur scientifique québécoisquébécois Founded in 1989Founded in 1989 Provide internetworking and access to Provide internetworking and access to

Internet and advanced networksInternet and advanced networks To universitiesTo universities To collegesTo colleges To research centersTo research centers

About RISQ About RISQ

Now an 'Optical Regional Advanced Now an 'Optical Regional Advanced Network' (ORAN)Network' (ORAN)

100+ members100+ members

'Fiber rich diet''Fiber rich diet' Evolving towards all optical networking, Evolving towards all optical networking,

privately owned and operatedprivately owned and operated

RISQ networking - historical notesRISQ networking - historical notes

Traditional leased lines approach until Traditional leased lines approach until 19971997

First MAN built in Montreal, 1997First MAN built in Montreal, 1997 Inter city transport in 1998 : oc48 Inter city transport in 1998 : oc48

Montréal-Québec, other destinationsMontréal-Québec, other destinations Started Québec city MAN in 1998Started Québec city MAN in 1998 Many projects in 1999Many projects in 1999

About RISQ and IMSAbout RISQ and IMS

RISQ is getting involved in fiber builds RISQ is getting involved in fiber builds all over the provinceall over the province

IMS is the provides us the engineering IMS is the provides us the engineering expertise and 'turf knowledge' required expertise and 'turf knowledge' required for these projectsfor these projects

RISQRISQ Rationale for private networksRationale for private networks Private network , a business decisionPrivate network , a business decision The HOW-TO guideThe HOW-TO guide Some factsSome facts ExamplesExamples QuestionsQuestions

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The driversThe drivers LAN Inter networkingLAN Inter networking Multimedia applicationsMultimedia applications InternetInternet VideoconferenceVideoconference

Bandwidth requirementsBandwidth requirements

Public network costsPublic network costs MarketingMarketing Network operationsNetwork operations Administration and billingAdministration and billing etc.etc.

Cost of bandwidthCost of bandwidth

Cost of bandwidthCost of bandwidth

Commercial network topologyCommercial network topology

CO

CO

CO

Other CO ’sOther CO ’s

other CO ’s

Construction of private networksConstruction of private networks

A solutionA solution

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Network dedicated to a specific Network dedicated to a specific organization;organization;

Designed to satisfy the needs of this Designed to satisfy the needs of this specific organization;specific organization;

Private network examples:Private network examples: LANLAN PABXPABX

What is a private networkWhat is a private network

Bandwidth requirementsBandwidth requirements Ownership costs vs. Cost of bandwidthOwnership costs vs. Cost of bandwidth Glass is freedom … Glass is freedom …

Flexibility - no permissions to ask, no Flexibility - no permissions to ask, no functional restriction ;functional restriction ;

Growth : no foreseeable limit to transport Growth : no foreseeable limit to transport capacity ;capacity ;

Stable, durable financial planning horizonStable, durable financial planning horizon

Why a private network ?Why a private network ?

Yes, for buildings close together;Yes, for buildings close together; Yes, for institutions owning many Yes, for institutions owning many

buildings in a localized geographic area;buildings in a localized geographic area; Yes, for long hauls, when:Yes, for long hauls, when:

broad clientele basebroad clientele base Partnerships are possible for buildsPartnerships are possible for builds

No, for users who do not expect a major No, for users who do not expect a major increase in their bandwidth needs;increase in their bandwidth needs;

Is a private network cost effective ?Is a private network cost effective ?

Benefits of fibre-optic networksBenefits of fibre-optic networks

Bandwidth can be increased by Bandwidth can be increased by changing opto electronic equipment at changing opto electronic equipment at extremities;extremities;

Support all protocols;Support all protocols; Long life expectancy (> 20 years);Long life expectancy (> 20 years); Small recurrent fees.Small recurrent fees.

Drawbacks of fiber-optic networksDrawbacks of fiber-optic networks

May be more expensive than May be more expensive than microwaves;microwaves;

Fiber optic installation in public Fiber optic installation in public structures is regulated by CRTC;structures is regulated by CRTC;

Longer construction schedule.Longer construction schedule.

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Regulatory contextRegulatory context

Public infrastructures available only to Public infrastructures available only to registered telecommunication registered telecommunication companiescompanies Pole, messenger wire, conduitsPole, messenger wire, conduits

Cables should be owned by the Cables should be owned by the telecommunication companies.telecommunication companies.

Proposed methodologyProposed methodology

Partnership with a telecommunication Partnership with a telecommunication company;company;

Engineering and construction Engineering and construction management under the supervision of management under the supervision of the institution. the institution.

PartnershipFiber optic construction for the education sectorPartnershipFiber optic construction for the education sector

The Telco agrees to use it ’s license for The Telco agrees to use it ’s license for private network construction;private network construction;

The Telco remains owner of the cable The Telco remains owner of the cable and the fibers;and the fibers;

An irrevocable right of used is given to An irrevocable right of used is given to the institution.the institution.

PartnershipNetwork maintenancePartnershipNetwork maintenance

The Telco accept to maintain the network at The Telco accept to maintain the network at cost plus 5%; cost plus 5%;

The Telco asks to reserve 6 fibers for it ’s own The Telco asks to reserve 6 fibers for it ’s own needs (additional fibers at the Telco's charge);needs (additional fibers at the Telco's charge);

The Telco assumes the maintenance costs for The Telco assumes the maintenance costs for the portion of network which will be the portion of network which will be commercialized.commercialized.

PartnershipConstruction managementPartnershipConstruction management

IMS/RISQ is managing the contract for IMS/RISQ is managing the contract for the institution the institution

IMS/RISQ prepares the engineering IMS/RISQ prepares the engineering documents according to the institution documents according to the institution needsneeds

RFP is issues according to the rules of RFP is issues according to the rules of the institutionthe institution

Partnership Construction managementPartnership Construction management

The institution emits the RFPThe institution emits the RFP IMS/RISQ analyze proposals IMS/RISQ analyze proposals

recommends Contractor recommends Contractor Contractor is selectedContractor is selected IMS/RISQ manages the project and IMS/RISQ manages the project and

supervises the constructionsupervises the construction IMS/RISQ assumes professional IMS/RISQ assumes professional

responsibility related to the project responsibility related to the project

Cost identificationsCost identifications

Immobilization costsImmobilization costs ManagementManagement EngineeringEngineering ConstructionConstruction

recurrent costsrecurrent costs Right of wayRight of way MaintenanceMaintenance

Cost identificationImmobilization costs Cost identificationImmobilization costs

Management engineering and Management engineering and constructionconstruction average cost: between 7 $ and 15$ per average cost: between 7 $ and 15$ per

metermeter these costs included:these costs included:

Management, engineering and construction costsManagement, engineering and construction costs Authorizations requirementsAuthorizations requirements Fiber optic cablesFiber optic cables Fusion of fibersFusion of fibers etc.etc.

Cost identificationImmobilization costsCost identificationImmobilization costs

ExceptionsExceptions Highway, river and railway crossingsHighway, river and railway crossings Municipal regulationsMunicipal regulations Rural areaRural area

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Right of way (above ground structures)Right of way (above ground structures) Poles :Poles : 1,32$ / pole / month1,32$ / pole / month wire :wire : 42 ¢ / span/ month 42 ¢ / span/ month Total :Total : 44 ¢ / meter / year 44 ¢ / meter / year

Right of way (underground structures)Right of way (underground structures) Bell conduits: 90¢ / meter / yearBell conduits: 90¢ / meter / year

Recurrent costsRecurrent costs

MaintenanceMaintenance 150$ / km / year150$ / km / year 15¢ / meter / year15¢ / meter / year

Cost identificationrecurrent costsCost identificationrecurrent costs

Above groundAbove ground 44¢ + 15¢ = 59¢ / meter / year44¢ + 15¢ = 59¢ / meter / year

UndergroundUnderground 90¢ + 15¢ = 1.05$ / meter / year90¢ + 15¢ = 1.05$ / meter / year

Cost identificationRecurrent cost (summary)Cost identificationRecurrent cost (summary)

100 schools at $400 per month during 3 100 schools at $400 per month during 3 years = 1 440 000 $ (for a maximum speed years = 1 440 000 $ (for a maximum speed (asymmetric) of 7 Mbps)(asymmetric) of 7 Mbps)

Fiber optic network= 1 500 000 $ (for a speed Fiber optic network= 1 500 000 $ (for a speed of 10/100/1000/? Mbps)of 10/100/1000/? Mbps)

No more need for router and servers in No more need for router and servers in school when fiber is installed: potential school when fiber is installed: potential savings of $800 000;savings of $800 000;

Partnership possible with other public Partnership possible with other public organizationsorganizations

Return on investmentReturn on investment

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Verscollège aéronautiqueet Agence Spatiale

Vers INRSet IREQ

CNRC

Edouard-Montpetit

Collège ChamplainRISQ

Projet Rive-Sud

RISQCoût du projet:

$ 828 400

U.de.SCampus Longueil.

Contributiondes partenaires:

INRS: $ 200 000U.de.S: $110 000Axion $200 000Ed.Mon.$ 35 000Inst.Télé$ 15 000IREQ $ 7 200CS M.V.$ 4 700A.Spat: $ 30 000=============Total $601 900

Coût RISQ:

$ 226 500

Amortissement annuel:

$ 44 955Entretien annuel:

$ 10 000

Institutdes télécom.

Revenus additionnels:

$ 251 000

Réduction des coûts du RISQ

$ 206 035

retour sur investissements:

0,9 années

Vers Rimouski

Hull

Shawinigan

Sherbrooke

Thedford

Chicoutimi

Projets Divers

RISQCoût du projet:

$ 4 000 000

Revenus additionnels:

$550 000

ConclusionConclusion

Construction of a private fiber optic Construction of a private fiber optic network is an investment rather than an network is an investment rather than an expenseexpense

Possible integration of telephony and Possible integration of telephony and other servicesother services

ConclusionConclusion

In the 1970 ’sIn the 1970 ’s School boards were building schoolsSchool boards were building schools

In the 2000 ’sIn the 2000 ’s School boards build telecommunication School boards build telecommunication

networks networks

The education sector needs the The education sector needs the telecommunication facilities telecommunication facilities Opportunities for partnershipsOpportunities for partnerships

Questions ?Questions ?