Lessons for CommunitiesIsen – “Salter, you got anything for us?”
Salter – “No”Isen – “Good, Come share that with us”
James Salter, President
1st FTTH Build – Began in 2001Borough of Kutztown, PA (3,000 Homes)
32nd FTTH Build – 2012Google Fiber, Kansas City (More than 3,000
Homes)
Our FTTH Footprint
Up to now, I’ve only had 4 Ideas, and I’m not sure any were original?
1. The Demand for Bandwidth Will Not End
2. Fiber is the only answer to bandwidth3. If a Community believes they need
bandwidth, they should build it themselves
4. Open Access won’t work in US model
My 5th Idea….
1. US is 15% built with FTTH2. US should be 100% built with FTTH3. Electric Utilities should build, or at
worst partner, on the remaining 85%
Why Electric Utilities?1. Don’t believe Major ILEC’s nor MSO’s
will significantly ramp FTTH builds – wireless is king
2. Biggest hurdle to FTTH build is access to ROW – electric utilities own 80% of easements in US
Our FTTH Footprint
Why Electric Utilities?1. Don’t believe Major ILEC’s nor MSO’s
will significantly ramp FTTH builds – wireless is king
2. Biggest hurdle to FTTH build is access to ROW – electric utilities own 80% of easements in US
3. Second biggest hurdle to FTTH is recovering cost in lower density areas – electric utilities can significantly close that financial gap IF they ACTUALLY implement REAL SmartGrid
Utility Capital Investment Per Customer…...
$2,500
$3,140
$2,620
$10,500
$14,100 $13,470
What is total investment in Electric system?
Generation = $7,500/Customer
Transmission = $1,500/Customer
Distribution = $3,500/Customer
TOTAL INVESTMENT = $12,500 PER CUSTOMEROr $1,750,000,000,000 !!!
Total Generation Capacity in USA – 900,000 MW
Average Generation Needed in USA – 450,000 MW (50% Load Factor)
Typical Daily Residential Usage - Summer
Midnigh
t t...
8:00 A
M
10:00
AM
Noon
2:00 P
M
4:00 P
M
6:00 P
M
8:00 P
M
10:00
PM
0
1
2
3
4
5
6
7
2
33.5 3.7
4.14.5
4.85.2 5.3
5.86.2
5.7 5.75
4.7
3.73
2
Residential Usage 24 Hours
KW
Dem
and
Base Generation @ 2 cents/KWH
Intermediate Generation @ 5 cents/KWH
Peak Generation @ 10 cents/KWH
Cost of New Generation?
Coal
Nuclear
Hydro
Wind/Solar
Smart Grid**
0 2000 4000 6000 8000 1000012000
3000
4000
2500
11000
1785
Approximate New Generation Cost by Type
Cost per KW
Dollars per KW of New Generation
Why aren’t Electric Utilities with me on this?
1. They don’t have any regulatory incentive to do real SmartGrid – they get a return for a new coal plant, they don’t get a return for technologies that avoid a new coal plant - We must change politics of regulation
2. They don’t believe you need big data requirements to do SmartGrid – We must show them they are shortsighted – Ask Chattanooga
3. They don’t want to be in the retail telecom business and they don’t want to partner with anybody – We must convince them that cyber security and common infrastructure aren’t mutually exclusive
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