The Network

How can a rural area afford a fiber-to-the-home network?

Because a group of several towns (or an entire region) is involved, the average household density is high enough, and the cost per household low enough, to allow payment of interest and capital for the construction of a fiber network. Once the network is in place, the actual costs for each subscriber are surprisingly low In some ways, the most rural areas are better prospects for a fiber network because there is often no alternative for high speed Internet service. In Burlington, where nearly everyone has access to high-speed DSL or cable modem internet service, more than 40% of the households in areas served more than 18 months have switched to fiber. One would logically expect the penetration rate in rural areas to be even higher.

Doesn't "state of the art" mean expensive and risky?

Municipal fiber networks (and fiber networks in general) are becoming more common, both in the US and internationally. The technology that the project proposes to use is well established and proven. For example, Verizon is essentially using the money from the planned sale of its VT, NH and ME phone lines to build nearly identical fiber-to-the-home networks in its urban and suburban markets. As the technology has become more common, prices for equipment have dropped.

Burlington, VT, is close to completing a network passing over 20,000 homes, providing a proven network architecture and business model. Tim Nulty, the former head of Burlington Telecom, recently announced his resignation and has joined VallyNet/ValleyFiber to manage the buildout and operation of this project.

The network will utilize similar network design and service offerings that have convinced nearly 40% of Burlington households with access to the fiber network to switch to the fiber network for Internet, and/or phone and/or cable services.

How extensive is the service that is contemplated? I heard some talk that it would extend anywhere there currently is phone service.

The firm goal of the project is to reach 100% of the households in every participating town.

Why do we need fiber when I have cable/DSL/wireless?

Current services are relatively slow and asymmetrical, which means that the download speeds are higher than upload speeds. These services are unsuitable for high quality teleconferencing, for exchanging complex graphic documents, for distance medical services, to take just a few examples from today’s business and education environment.

As more and more services are available on the web, using more and more bandwidth, the speeds of cable, DSL, and wireless will soon no longer be adequate. Fiber has the speed and capacity for today's needs, as well as for future advanced bandwidth-intensive services.

Isn't wireless better suited to providing remote last mile access?

Wireless access is also asymmetrical (the upload speed and download speeds are different) and can be slow and unreliable. There needs to be a clear line of sight between the transmitting tower and the receiver at the residence; the very nature of the wireless signal and local topography prevent truly universal wireless coverage. Wireless is extremely useful where mobility is needed but is not nearly as good as optical fiber for the main “heavy lifting” of telecommunications. The best way to use wireless is as a complement to a foundation of universal fiber which can provide multiple antenna sites and unlimited “backhaul” from these sites to the central “hub”.

Have studies on the dimensions of the work been done?

Preliminary studies have been done, and the process of refining those studies is on-going.

Does the fiber go onto existing poles? How is that paid for?

Yes. Make-ready” is the cost of making poles ready for accepting fiber. In most cases, this could mean replacing poles, or just moving things around to make room for the fiber. There is a great deal of experience in this in New England and the middle-Atlantic states. Based on this experience, a conservative “budgetary” number of approximately $250 per pole has been included in the business model. In practice, it will probably be somewhat less than this.

Will every house be connected? Really? 100%?

Absolutely, “Yes!!”. Of course, no one can be forced to take service if they don’t want it. However, the clear, unequivocal policy of the project is to make service available to every household that wants it. There will be an installation charge, and there will be a minimum amount of service that must be subscribed for to make connection economically feasible.

Why will the hub be located in White River Junction?

There are two places in Vermont where it is most cost-effective to locate hubs, because fiber is available in large "cross-sections" (places where large networks such as Sprint and Qwest intersect): White River Junction and Burlington. Every effort is being made in thinking about the network design, to keep construction costs as low as possible.

How much would I have to pay to get connected? What if I live 5 miles from the road?

Installation fees to connect a residence to the fiber network would be determined after the formal network design has been completed, but are likely to be around $100.

Long aerial connections are actually not much more expensive than short ones because much of the cost is fixed. For houses extremely far from the road or residents who require a long underground connection and do not have suitable conduit, a cost-sharing arrangement would be proposed.

Would I have to change wiring in my house?

The FTU (fiber terminal unit - essentially a box that contains the electronics necessary to convert the digital signals encoded in light waves running on the fiber into electrical signals) provides a connection to Ethernet, coax, or phone connections. In most cases it is easiest to provide new CAT 5 wiring to one television set and one computer to ensure the highest quality service. This wiring cost is included in the installation fee.

What if the power goes out? Won't I lose my telephone connection?

The FTU (box that connects the fiber network to the residence or business) has an 8 hour battery backup to provide telephone service in case of a power failure. The passive optical network needs no power between the central office and your house. Battery power will be monitored at the Central Office and customers will be informed if their battery is low to arrange for a service technician to visit to replace the battery.

What if the fiber lines go down in a storm?

There would be a contract with a maintenance company that would require them to maintain spare parts in a suitable location, maintain a 24/7/365 on-call list, and to be on site within 30 minutes in the event of a downed line or similar emergency.

As it turns out, fiber cables almost never break, even when a tree falls on the line or a pole is severed. There are two reasons:

The electric lines are always on top - so they are what gets hit and takes the weight;

The fiber is lashed to a 10,000 lb tensile strength steel cable called a "strand" or "messenger". This is VERY difficult to break - indeed, it will hold up the poles if they are severed.

Will New Hampshire get connected eventually?

Initially, the project is concentrating on Vermont because the regulatory and political environment is much more positive. However, in due time and IF the New Hampshire regulatory and political climate permits, the project can be expanded to that State.