Broadband Communities

JUL 2012

BROADBAND COMMUNITIES is the leading source of information on digital and broadband technologies for buildings and communities. Our editorial aims to accelerate the deployment of Fiber-To-The-Home and Fiber-To-The-Premises.

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6UZe`c|d ?`eV EDITORIAL DIRECTOR Scott DeGarmo PUBLISHER Nancy McCain nancym@bbcmag.com CORPORATE EDITOR, BBP LLC Steven S. Ross steve@bbcmag.com EDITOR Masha Zager masha@bbcmag.com ADVERTISING SALES Irene G. Prescott irene@bbcmag.com MARKETING SPECIALIST Meredith Terrall meredith@bbcmag.com DESIGN & PRODUCTION Karry Thomas CONTRIBUTORS Joe Bousquin David Daugherty, Korcett Holdings Inc. Richard Holtz, InfiniSys W. James MacNaughton, Esq. Henry Pye, RealPage Bryan Rader, Bandwidth Consulting LLC Robert L. Vogelsang, Broadband Communities Magazine BROADBAND PROPERTIES LLC PRESIDENT & CEO Scott DeGarmo SENIOR VICE PRESIDENT CHIEF FINANCIAL OFFICER Himi Kittner VICE PRESIDENT, BUSINESS & OPERATIONS Nancy McCain AUDIENCE DEVELOPMENT/DIGITAL STRATEGIES Norman E. Dolph CHAIRMAN OF THE BOARD Robert L. Vogelsang VICE CHAIRMAN The Hon. Hilda Gay Legg BUSINESS & EDITORIAL OFFICE BROADBAND PROPERTIES LLC 1909 Avenue G Rosenberg, Tx 77471 281.342.9655, Fax 281.342.1158 Www.broadbandcommunities.com E ach year, when the BROADBAND COMMUNITIES team assembles the Top 100 list, we invite executives of the profiled companies to share their views about industry trends. Each year, we re- ceive more insightful, thought-provoking comments than we can possibly print. You'll see excerpts interspersed among the company profiles in the FTTH Top 100. Reviewing this year's comments, I was struck by the disconnect between how people perceive the benefits of fi- ber to the home and how they perceive the business model. Everyone is excited about fiber – not just consumers but also equipment vendors, service providers, consultants and others in the industry see its potential. "Fiber networks are making the world a much smaller place," a Telco Systems executive told us. Te president of G4S Technology, which is building a num- ber of rural health networks, cited "im- proved education, expanded health care, enhanced public safety and the overall improvement of economic development." Te CEO of BVU Authority, a mu- Broadband Communities (ISSN 0745-8711) (USPS 679- 050) (Publication Mail Agreement #1271091) is published 7 times a year at a rate of $24 per year by Broadband Properties LLC, 1909 Avenue G, Rosenberg, TX 77471. Periodical post- age paid at Rosenberg, TX, and additional mailing offices. POSTMASTER: Please send address changes to Broadband Communities, PO Box 303, Congers, NY 10920-9852. CANADA POST: Publications Mail Agreement #40612608. Canada Returns to be sent to Bleuchip International, PO Box 25542, London, ON N6C 6B2. Copyright © 2012 Broadband Properties LLC. All rights reserved. nicipal FTTH operator, noted his orga- nization's commitment to improving the quality of life in southwestern Virginia, and the CEO of Smithville, a privately owned telephone company, stated, "Fi- ber-based broadband provides the critical strategic platform that energizes collabo- ration and allows for the free and rapid exchange of ideas." ARE WE THERE YET? Nevertheless, throughout the United States and worldwide, service providers are still focused on building better DSL and 2 | BROADBAND COMMUNITIES | www.broadbandcommunities.com | JULY 2012 masha@bbcmag.com. cable networks. A ZyXEL executive told us why the latest flavor of VDSL2 appeals to service providers; the president of Pacfic Broadband Networks talked about the op- portunities for cable broadband in emerg- ing economies. Yet these technologies – though they represent great advances over earlier generations of broadband, and most consumers will undoubtedly wel- come them – don't inspire the enthusiasm that fiber inspires. Tey are seen as transi- tional, not transformational. Because the long transition to fiber is, in part, a matter of deferring costs as long as possible, many executives suggested ways to make FTTH affordable. Improv- ing equipment, software and tools; lift- ing burdensome regulations; using new financing methods and opening access to multiple providers were all cited as key strategies for becoming more efficient. Efficiency is needed, but it won't change the fundamental equation. Other broadband technologies are becoming more cost-efficient, too. In the end, the way to make the business case for fiber is to exploit the unique benefit of fiber – its ability to support multiple advanced services. I'll give the final word to FTTH pio- neer Diane Kruse, who told us: "Te old methods of relying on triple-play services to sustain the financial model are being replaced by over-the-top applications and money saved by health care, govern- ment, education and energy management systems." The collective wisdom of the FTTH Top 100 leaders is that fiber to the home is more than just better broadband. Note to FTTH: Be All You Can Be

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