Doug WilsonEngineering Associates, Inc.dwilson@engineeringassociates.com

“Business” Broadband is the Opprotunity

Emphasis-Opportunities Tier 3 TelcosResults of Discussions over two years

A. Observations of “Others” ActivitiesB. Respect Confidentiality

Generate New Revenue exiting skill sets & infrastructure w/o betting the Farm

Primary Focus Tools to win race to be Broadband Provider for your

customers & community Ethernet Provider for:

◦Local Businesses◦Local and County Governments

Company Ramifications Liberally Plagiarized

◦Service Provider Web Sites◦Vendors Calix/BIT- Frank Weiner Others- CISCO, etc.

The Story of Ethernet

You know, I’m not sure if this Ethernet will ever be used in an IOC market…..

Ethernet IOC market opportunities one year later…..

Existing Physical Infrastructure Organizational Infrastructure

◦Technical Skills ◦TDM/ Ethernet Skills ◦Marketing Skills

Business/Government Needs◦Broadband Connectivity Needs Exploding

- CISCO says 46%/Yr.◦ Internet Concerns of Businesses Security-Bandwidth◦Data Connectivity Becoming Mission Critical ◦Wireless Backhaul Opportunities Exploding

Need Trusted Provider/Partner◦Local Presence◦Financial Integrity◦Single Source

US Wholesale Ethernet Service revenues of $595 million in 2009 with estimates of $1.5 billion in 2014 - Frost & Sullivan

Existing TDM/ Sonet Networks Some Core Ethernet? xDSL/FTTP? Technology Cycle Accelerating

◦Historically 3/5 years◦Recently 1 ½ years

Price Decreases- Ethernet Carrier Grade Data Products

“Business Services” less price sensitive than residential services & less competition

SONETNETWORK

DS1DS3‘limited” IPOCx

DS1DS3‘limited” IPOCx

Existing TDM platform Very Reliable & Secure Best option for ‘Specials” Limited for IP bandwidth High cost optics Expansion expensive Not Efficient Supports Ethernet

POTSxDSLFTTHDS1

BLC

TRANSPORT

TRANSPORT

TRANSPORT

TRANSPORT

ETHERNETNETWORK

IP - 10/100 MbIP - 1Gb‘limited’ DS1

Ethernt/IP platform Can Be Very reliable Poor option for ‘Specials” Provides very high IP

bandwidth Very low cost optics Expansion inexpensive Very Efficient It’s here

POTSxDSLFTTH‘limited’ DS1

IP - 10/100 MbIP - 1Gb‘limited’ DS1

BLC

TRANSPORT

TRANSPORT

TRANSPORT

TRANSPORT

New Inter Net Based Applications Developing Internet Not Secure or Reliable Initial Bandwidth requirements How to handle Growth? Point-Point & Point- Multipoint requirements In Area & Out of Area- Networking Goal/Support – Connection to “Enterprise

Systems”

Virtual Configuration VLAN/VPN Control creates “circuit” Flexible & Reconfigurable Easy Update/Modify Relatively Economical Not Disruptive Technology for Infrastructure

or staff

Existing Infrastructure

◦SONET?

◦FTTP/xDSL?

◦Fiber Existing Organization Local Presence Establishes Broadband Relationships

Define Opportunity- Customers◦ Identify Potential Customers◦ Define Their Requirements

Learn “Dataese” Identify Network & Operating Systems

Upgrades- Don’t Over Analyze- Negotiate Inter Connection Arrangements – If

Necessary Develop Marketing & Pricing Plan MARKET Implement & Perform- Monitor Publicize & Repeat