Introduction to Broadband and High Speed Internet

Introduction to Broadband

and High Speed Internet

Fall 2022

Table of Contents

Broadband or High-Speed Internet ?

Overview of Broadband in USA

NTIA Bipartisan Infrastructure Law (BIL)

Broadband Funding Programs

The Life of An Internet Packet

Broadband Key Terms

Broadband Connection Types

Broadband Economics

Broadband or High-Speed

Internet ?

4 Internet For All

Broadband or High-Speed Internet?

High-speed Internet is a generic term used for Internet service that is faster than

the average. Traditionally, the way to determine if a connection is high-speed is to test

its ability to connect multiple devices simultaneously to allow streaming and access to

modern applications.

Broadband

Definition

High-Speed

Internet

Definition

Which Term to

Use ?

In essence, the terms “Broadband” and “High-Speed Internet” are

mostly interchangeable when the internet speeds are at the FCC standards, or

higher (i.e., a minimum of 25Mbps for download & 3Mbps for upload).

Broadband in telecommunication means a wide bandwidth which can transport

multiple signals over a “broad” range of frequencies and support different internet

traffic types, allowing multiple data streams to be sent at once.

For purposes of this presentation, when talking infrastructure or technology, we will use the

term Broadband and when talking about the service provided, we will use the term High-Speed

Internet.

Overview of High Speed

Internet in the USA

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Millions of Americans Don’t Have Reliable High-Speed

Internet

• 17 million Americans do not have High-

Speed Internet @ 25/3 Mbps.

• 20.9% of Tribal lands and 17.2% of

rural lands do not have 25/3 Mbps High-

Speed Internet.

• While 95.6% of household have access to 25/3

Mbps High-Speed Internet, only 68.9% of

households subscribe to service at that

level or above.

Visualization: NTIA National Broadband Availability Map (NBAM)

Source: FCC 2021 Broadband Deployment Report, based on ISP-reported Form 477 data

Red areas indicate where wireline High Speed Internet service is

unavailable at the basic FCC benchmark speed of 25/3 Mbps -

based on FCC Form 477 carrier-reported data.

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High-Speed Internet Adoption is Uneven Across

Communities

• 65 million Americans do not use the

Internet at all.

• 10 million Internet users rely solely

on a mobile data plan.

• 5 Million households not online

identified cost as their main reason

for not using the Internet.

• Under-connected Americans are

disproportionally likely to be low-

income, non-white, rural, Tribal, older,

and differently-abled.

Source one: NTIA Internet Use Survey, based on consumer 2019 surveys; American Community Survey Device Ownership data 2015-2019

Visualization: NTIA National Broadband Availability Map (NBAM)

Red areas indicate places where more than 35% of the households have no

Internet at all based on ACS subscription data.

8 Internet For All

It’s Time to Invest in the American Workforce

• 77% of all jobs require at least some

technology skills.

• 48% of hiring managers say that

candidates lack the skills needed to fill

open jobs.

• 29% of students without basic

digital skills say they won’t consider

post-secondary studies.

• More than 12 millions households

lack access to a computer, tablet or

smartphone.

Visualization: NTIA National Broadband Availability Map (NBAM)

Source: American Community Survey Device Ownership data 2015-2019

Residents without devices have fewer opportunities to hone their digital

skills, access educational opportunities, and advance in the workforce.

9 Internet For All

Telework

Education

Economic Development

Healthcare

Public Safety

Entertainment

Accessibility

Environmental Sustainability

Urban Revitalization

High-Speed Internet allows teleworkers opportunities to more readily

live and work in locations of their own choosing, without having to be

within commuting distance of a corporate center or another base

location.

High-Speed Internet networks enhance educational experiences by

providing students and teachers with access to an array of

resources and the opportunity for distance learning.

High-Speed Internet makes remote access to clinical services

possible and cost-effective. It also allows physicians to monitor

their patients through innovative home health devices.

High-Speed Internet enables local communities, regions and

nations to develop, attract, retain and expand job-creating

businesses and institutions.

Wireless broadband, is becoming indispensable to the interoperability

of police, fire, health and other government entities in both day-to-day

and crisis situations.

Government Services

High-Speed Internet helps government agencies improve quality, lower costs and

increase transparency by improving internal operations and making it easier for

residents to interact with them online.

Fully wired communities can provide residents with opportunities to

take career and skill development classes, allow for more effective public

safety and contribute to greater economic growth.

High-Speed Internet enables buildings to communicate with utilities

and the energy market. Smart buildings and smart grids, hold great

promise for greater efficiencies in energy consumption.

High-Speed Internet is an important tool to address the needs of people with

disabilities. Through various broadband-based applications and supporting

technologies, people with disabilities have access to a new array of smart

devices improving quality of life.

High-Speed Internet is essential to enjoy 21st-century entertainment.

Streaming video, online gaming and connecting with friends and

relatives via social media are only possible because of broadband.

Why High-Speed Internet Matters

Benefits of

High-Speed

Internet

NTIA

Bipartisan Infrastructure Law (BIL)

Broadband Funding Programs

11 Internet For All

NTIA BIL Broadband Funding Programs

$42.45B

Broadband Equity, Access &

Deployment Program

A program to get all Americans

online by funding partnerships

between states or territories,

communities, and stakeholders to

build infrastructure where we

need it and increase adoption of

high-speed Internet.

BROADBAND EQUITY,

ACCESS, AND

DEPLOYMENT

$2.75B

Digital Equity Act

Three programs that provide

funding to promote digital

inclusion and advance equity for

all. They aim to ensure that all

communities can access and use

affordable, reliable high-speed

Internet to meet their needs and

improve their lives.

DIGITAL

EQUITY

$1.00B

Enabling Middle Mile

Broadband Infrastructure

A program to expand middle

mile infrastructure, to reduce

the cost of connecting unserved

and underserved areas.

MIDDLE

MILE

+$2.00B

Enabling Tribal Broadband

Infrastructure

A program for tribal

governments to bring high-

speed Internet to tribal lands. It

also supports telehealth,

distance learning, affordability,

and digital inclusion initiatives.

TRIBAL BROADBAND

CONNECTIVITY

PROGRAM

The Life of An Internet

Packet

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How does the Internet work ?

Wi-Fi Router

End-User

01010111 01001111 00101001 10100101 00101001 11010010 11010010 1100

Wireless

Electric signal (Coaxial)

Light Signal (Fiber Optic)

packet

Packet

Wired

Modem

01010111 01001111 00

Digital Signal

• When an Internet user is trying to access a web site, the first thing the computer will initiate is a communication with

the server hosting the website located in a data center by sending a request.

• This “request” is a data that will be translated to a series of 1s a

nd 0s (computer language), then will be chopped into

chunks called packets.

• Each packet will be sent to the wi-fi router via either wireless or cable (ethernet), then eventually, will exit the router to

he modem and then to the ISP fiber or coaxial network towards the data center location.

• The data center, which can be across town or across the world from the end-user, has the requested web page stored

side it. Once the server gets a request to access a particular website, the data flow starts.

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How does the Internet work ? (Cont’d)

Legend

ISP Router

Pole for aerial fiber

Data Center

Modem

• Each packet will then move through multiple ISP networks, routers and switches towards

the final destination where the packets will be reassembled into a coherent message (The

original request).

• The network will choose the optimum route for the packet to reach the server based on the

distance, the links capacity, and other factors.

• A separate message will go back through the network to confirm a successful delivery and

right after, the data flow between the user and the server is established.

After exiting the modem, the packets that were converted from a digital signal to an analog signal will enter the ISP

network, which is in most cases a large number of fiber optic cables that either buried underground (Buried Fiber)

or attached to utility poles (Aerial Fiber).

Communication direction (Upload/Download)

Aerial fiber cable

Buried fiber cable

Broadband Key Terms

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Broadband - The Basics

What is Broadband?

The term Broadband was introduced in

the late 1990’s and it commonly refers to

high-speed Internet access that is

always on and faster than the traditional

dial-up access (Maximum of 56kBits/s)

Broadband is accessed through various

high-speed transmission

technologies that allow the data to move

faster.

How is FCC defining

Broadband ?

The Federal Communications Commission

(FCC) defines basic broadband as

transmission speeds of at least 25 Mbps

(megabits per second) downstream

(from the Internet to the user’s computer)

and 3 Mbps upstream (from the user’s

computer to the Internet). Infrastructure

Investment and Jobs Act (IIJA) defines

underserved broadband as an Internet

speed of less than 100 Mbps

downstream and 20 Mbps upstream.

How to access High-

Speed Internet?

High-Speed Internet is delivered with

one of two Broadband technologies. The

first technology is physical wire and

cables to connect the networks to the

Internet, and this is called Wired

broadband (e.g., Fiber Optic Cable). The

other is wireless technology (e.g.,

Cellular 5G), and it’s called Wireless

Broadband. Each connection method is

capable of providing high-speed Internet,

but each differs in its own way.

Types broadband connections

Internet speeds are measured at the end-user location (Last Mile)

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Middle Mile & Last Mile

Internet

Distribution Network

(Middle Mile Infrastructure)

Core Network

(Backbone)

Access Network

(Last Mile Infrastructure )

Middle Mile

Aggregation

Facility**

Point of

Presence*

Middle Mile

Interconnect

Facility***

Legend

Wireless Communication (Microwave)

Wired Communication (Fiber)

Wireless Transceiver (Antenna Tower)

Wired Communication (Coaxial)

Wireless Communication (Satellite)

Wireless Transceiver (Satellite

Antenna)

Satellite

Last Mile

The electronics and circuitry that

deliver the Internet service to a

household.

Middle Mile

The electronics and circuitry that carry a signal

from interconnection points and aggregation

facilities to a Central Office or Point of Presence.

Interconnected networks

that transmit data between

and across countries and

continents

*Point of Presence(POP): Demarcation point,

access point, or physical location at which two or

more networks or communication devices share a

connection.

**Example of Middle Mile Aggregation

Facility is An Internet Exchange Point (IXP),

which is a physical location through which Internet

infrastructure companies such as ISPs connect

with each other.

***Example of Middle Mile Interconnect

Facility is a Data Center, which is a facility

responsible for driving Internet content delivery

and managing network resources.

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Bandwidth

Bandwidth determines the amount of information that can be transmitted across a given path in a given unit of time.

In other words, bandwidth is the size of the medium used to transmit data. The larger the size the more data you can

transfer.

Downloading 5MB file on 1 Mbps Bandwidth

Downloading 5MB file on 5 Mbps Bandwidth

Bandwidth Analogy

The best way to explain bandwidth is to use an analogy (See the figure below). Think of your bandwidth like a highway,

and your data as cars that travel the same speed. The more lanes you have on the highway, the more cars can travel at a

time – it will take 5 cars longer to get to their destination on a 1-lane road than it would on a 5-lane highway.

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Throughput & Latency

Server Internet

Modem

End Device

Throughput

The amount of a data that a system can transmit over a medium within a specified time. Measured in Megabits* per seconds (Mbps).

Quantity of Data can be sent and

received withing a unit of time

Server Internet

Modem

End Device

Time needed for a data packet

transfer

e.g., Latency = 20ms + 25ms = 45ms

20ms

25ms

Latency

Network latency, sometimes called lag, is the term used to describe delays in communication over a network. It is a measurement of the

time it takes to send data and receive a response.

* A binary digit (bit) is the minimum unit of binary information stored in a computer system. A bit can have only two states, on or off,

which are commonly represented as ones and zeros.

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Causes of Network Latency

Distance

Latency can be caused by an excessive distance between the server/system making the request and the one that responds to

it.

Bandwidth & Network Congestion

Network congestion happened when there’s a lack of sufficient bandwidth to handle the existing amount of traffic, causing

delays to the transmitted data and increasing latency.

Hardware Misconfigurations & Malfunctions

The check of hardware operation & configuration can be crucial in detecting latency causes. Malfunctioning or misconfigured

equipment can lead to mis-matched connections between systems, which can add latency.

End-User issues

Network problems might appear to be responsible for latency, but sometimes excessive latency is the result of the end-user

device being low on memory or the processing power needed to respond in a reasonable timeframe.

Physical issues

The physical medium used for communication (wires, fiber, wireless) can also be a source of latency. Cables can become

damaged and wireless signal paths can become obstructed leading to loss of data or increased latency.

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Symmetric vs. Asymmetric for Upload/Download

Symmetrical Communication

Symmetrical communication links are just as

they sound. They have the same download and

upload rates. For example, a 500/500 Mbps

fiber Internet link offers download and upload

speeds of 500 Mbps.

Asymmetrical Communication

Asymmetrical communication links, on the other

hand, do not have the same download/upload

rates. For example, 25/3 denotes a download

speed of 25 Mbps and an upload speed of 3 Mbps.

Asymmetrical data communication can make

more efficient use of bandwidth than symmetrical

data flows, since generally, most users will

download more data than they upload

Upload – 500Mbps

Download - 500Mbps

End-user

premises

ISP Servers

Download - 25Mbps

Upload – 3Mbps

End-user

premises

ISP Servers

22 Internet For All

What is Dark Fiber ?

Fiber Provider Network

Dark Fiber

• Dark fiber refers to optical fiber infrastructure that has

not yet been lit (*lit fiber), meaning it is installed but

is not yet being used (no data transmission).

• Dark fiber is rented by broadband providers who need

to control their own network, so instead of leasing a

service, they lease infrastructure that allows them to

build their own network with their own equipment.

• Dark fiber gives clients the capacity to increase

bandwidth as needed without paying any additional

monthly costs and decreases dependence on carrier

response times during events and for upgrades.

• Dark fiber is usually priced per strand per mile for a

set period. The dark fiber providers often offer their

client the option of an indefeasible right of use

(IRU)** which can range between 20 to 30 years, paid

upfront along with annual payments for maintenance.

*Lit Fiber: This term is the opposite of dark fiber and refers to a fiber optic cable

that is active and able to transmit data.

** Indefeasible Right of Use (IRU) : A contractual agreement (temporary

ownership) of a portion of the capacity of a fiber optic cable.

Visualization: panda com direct – Dark Fiber check

Leased Dark Fiber Path

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Network & Connectivity

Network Topologies

The term network topology describes how devices are connected to each other within the network. It describes how many

connections each device has, in what order, and what sort of hierarchy. Typical network configurations include mesh

topology, ring topology, star topology, and tree topology. Each topology has a different level of fault tolerance.

Star Topology

Also known as hub and spoke.

All the nodes in the network are

connected to a central device like a

hub or switch via cables. Failure of

individual nodes or cables does

not necessarily create downtime in

the network, but the failure of a

central device can.

Low Redundancy.

Mesh Topology

The topology in each node is

directly connected to some or all

the other nodes present in the

network. This redundancy

makes the network highly fault-

tolerant, but the escalated costs

may limit this topology to highly

critical networks.

High Redundancy

Ring Topology

All network nodes are connected

sequentially to a backbone,

except that the backbone ends at

the starting node, forming a

ring. The failure of one node

will result in changing the

direction of the data traffic since

the topology is Bi-directional .

High Redundancy.

Tree Topology

A root node is connected to two or

more sub-level nodes, which

themselves are connected

hierarchically to sub-level nodes.

Physically.

Medium Redundancy.

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Network Management Best Practices

What is Network Management?

Network management refers to a system consisting of processes, tools, and applications that help in the administration,

operations, and maintenance of a network infrastructure. Network management systems collect and assist in analysis of network

performance data, which engineers and administrators use to maximize availability, improve network performance, and ensure

reliability and network security. The following are the Network Management Best Practices:

The first step is to understand

your network- how it is

designed, configured, how

devices are connected, and how

data flows within it. A clear

understanding of the following

is necessary:

 Network Topology

 Network Devices

 The OSI Model

The next step is to gain an

understanding of the network

defenses, i.e. the security

controls that are available and

those that are already in place.

Implementing Tried and tested

measures that establish a

functional and effective security

posture for dealing with

common security threats.

Create a map of the network

infrastructure highlighting the

critical devices, systems, and

software that form the network

core.

Tracking network usage helps

identify bandwidth-eating

technologies, and devices which

can cause sluggishness and

connectivity problems for

everyone else.

The network is a complex

architecture consisting of

hundreds of pieces of hardware,

software, systems, and

protocols. Failure can occur in

one of the core network

components and bring down a

whole system.

Network failures can be avoided

by creating network redundancy

in components that are most

likely to fail

Knowing the compliance

requirements of your

business will help you set

expectations and manage

your network better.

Understanding your

Network

Knowing and

Implementing

Network Security

Identifying &

Tracking Devices, and

Systems

Creating Redundancy

to Avoid Network

Failures

Understanding your

Network Compliance

Requirements

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Redundancy

The deployment or provisioning of duplicate devices or

systems in critical areas. Redundant devices can operate in

active-active, or active-standby; but the goal is the same:

Minimize operational impact of device failures.

Redundancy vs Resiliency in Broadband Networks

Resiliency

The ability to recover, converge or self-heal to restore normal

operations after a disruptive event. Resiliency is enabled by

the proper implementation of redundancies.

Figure 1 shows a redundant fiber optic connection between

two buildings. This network is considered redundant but not

resilient as there are still two single points of failure that

would render the redundant fiber optic cable useless:

Demarcation points & underground pipe

Legend

Fiber Optic Cable

Demarcation Point

Figure 2 shows a redundant fiber optic connection between

the two buildings. This network is considered redundant and

resilient as it has two physically separated demarcation points

in each building. An event at any one demarcation point will

not affect the other.

Routing each fiber optic cable via a physically separate

conduit, over a separate path, will ensure that those cable

finders can’t take the service out by cutting a single

underground pipe.

Note : It’s critical that as much distance as possible geographically separates the underground

pipes. Putting them right next to each other would obviously defeat the purpose.

Figure 1

Figure 2

Visualization: VOLOGY (ATSG)–

redundancy-vs-resiliency

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OSI Model

The Open Systems Interconnection (OSI) model is a conceptual model that describes the universal standard of

communication functions of a telecommunication system or computing system, without any regard to the system's

underlying internal technology and specific protocol suites. The OSI model has seven layers described below, and helps:

• Determine the required hardware and software to build their network.

• Understand and communicate the process followed by components communicating across a network.

• Perform troubleshooting, by identifying which network layer is causing an issue and focusing efforts on that layer.

Physical

Layer - L1

Data Link

Layer – L2

Network

Layer – L3

Transport

Layer – L4

Session

Layer – L5

Presentation

Layer – L6

Application

Layer – L7

Middle Mile Infrastructure's focus

Human-Computer

interaction layer, where

application can access

the network services

Ensures that Data is in

a usable format and is

where Data encryption

occurs

Maintains connections

and is responsible for

controlling ports and

sessions

Transmits Data using

transmission protocols

including TCP and

UPD

Decides which physical

path the Data will take

Establishes and

terminates a

connection between

two physically-

connected nodes on a

network

Transmits raw bits

stream over the

physical medium

(Wired or wireless)

BEAD Infrastructure's focus

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OSI Model – Physical Layer L1

The physical layer is responsible for the physical cable or wireless connection between network nodes. It defines the

connector, cable or wireless technology connecting devices. Layer 1 is responsible for encoding and transmission of the

raw data over a medium.

Example of Wired and Wireless mediums associated with Physical Layer :

Fiber Optic

Transmits data via

light waves. Optical

cable currently has the

highest capacity and

distance of any

transmission medium.

Microwave

Transmits data via

radio waves over a

clear line of sight

Coaxial Cable

Transmits data over

longer distances than

other copper cables.

Coax is most

commonly used in

cable TV networks.

Satellite

Transmits data via

radio waves through

an orbiting satellite.

Traditionally used for

remote locations.

Twisted Pair Cable

Commonly used for

telephone and

Ethernet. Usually seen

inside houses

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OSI Model – Data Link Layer L2

The data link layer establishes and terminates a connection between two physically-connected nodes on a network. It

breaks up packets into frames and sends them from source to destination. This layer is composed of two parts—Logical

Link Control (LLC), which identifies network protocols, performs error checking and synchronizes frames, and Media

Access Control (MAC) which uses MAC addresses to connect devices and define permissions to transmit and receive data.

Network Switch is the device associated to Data link Layer

A network switch connects devices within a network and forwards data frames to and

from those devices. Unlike a router, Layer 2 switch only understands communication

with devices directly connected to it; Layer 2 has no concept of sources or

destinations "farther away" on the network.

Network switches can operate at either OSI layer 2 (the data link layer) or layer 3 (the

network layer). Layer 2 switches forward data based on the destination MAC address.

Layer 3 switches forward data based on the destination IP address, effectively making

them routers. Some switches can do both, operating at both OSI layers 2 and 3.

48 ports Network switch

Network Switch Symbol

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OSI Model – Network Layer L3

The network layer is responsible for the end-to-end delivery of data between the originating device and the final

destination. Routers forward packets by discovering the best path across a physical networks. The network layer uses

network addresses (typically Internet Protocol addresses) to route packets

Network Router is the device associated to Network Layer

A router is a device that connects two or more packet-switched networks or

subnetworks. Routers manage traffic between these networks by forwarding data

packets towards their intended destination IP addresses.

In order to direct packets effectively, a router uses an internal routing table — a list

of paths to various network destinations. The router reads a packet's header to

determine where it is going, then consults the routing table to figure out the most

efficient path to that destination. It then forwards the packet to the next network in

the path.

Network Router Symbol

Enterprise Router

Broadband Connection

Types

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Broadband connection types

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Broadband connection types

A system that operates on Mid-

to-high radio frequency signals

and connect two locations that

have a clear line of sight

Originally installed for cable TV but

can be also used to transmit Internet

services. The communication is

typically asymmetrical, with fast

download and slow upload

Cables are deployed using existing

pole infrastructure. Typically,

more cost effective, but may be less

suited for areas with extreme

weather

A remote point in the fiber optic

cable system connecting fiber optic

cables to the distribution system.

(e.g., Data Center, Teleco central

Office)

Fiber Optic cables are directly

buried or installed in underground

ducts. Typically, more expensive to

deploy, but may be better suited for

areas with extreme weather

A location serving as a central

point for distribution of

communication services. The

facility serves multiple

buildings.

Fiber optic cables deployed

and serving as a connection

between the access network

(Last Mile) to the core network

(Backbone).

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Aerial vs Buried Fiber optic cable – Pros & Cons

Cons

Pros

Buried cabling is the opposite of aerial cabling, as it’s

buried under the ground in pipes or conduits rather

than outside along utility poles. This can protect them

from the bad weather that aerial cabling must deal

with, but it can be costly.

Buried Fiber Optic Cabling Aerial Fiber Optic Cabling

Also known as overhead cabling, aerial cabling installs

the Fiber Optic cables typically along a line of utility

poles. The cables connections are kept away from any

foot traffic but are more vulnerable than buried cable.

– Protected from extreme weather and damage

– Can lease pre-existing conduits/pipes

– Preferred by local planning authorities

– Easily modified if you need to add more cabling

– Can be more cost effective if existing utility poles can be

used.

– Often used un rural environment that lack local

planning authorities like that of large towns or cities

– Can be expensive due to how deeply cables need to be

buried or geology (e.g., rock or hard clay in the ground)

– Risk of cables being dislodged due to an excavation

– Expensive to repair

– Susceptible to bad weather (e.g., extreme winds, ice,

and tree damage)

– Takes time to install due to make-ready requirements

– Difficult to install in cities or towns due to local

planning authorities’ guidelines

Broadband Economics

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Costs | Typically Segmented Into Two Key Categories

Capital Expenditure (CapEx)

Dollar cost to build the network asset

• Typically, a large, upfront cost which is depreciated

over the useful life of the asset for accounting

purposes.

• Can include material, land, labor for construction

and connection, engineering, permitting, upgrades

and replacements, and construction equipment.

Operational Expenditure (OpEx)

The day-to-day (ongoing) cost to run and

maintain a network to provide services

• Can include power, network maintenance, middle

mile and/or core Internet transit fees (if any), sales

and marketing, customer support, rent, and other

business operation expenses.

In the context of IIJA, the Broadband Equity, Access and Deployment (BEAD) program in effect

provides a significant CapEx subsidy. Therefore, the key cost considerations for providers are their

remaining CapEx costs (match amount) and ongoing OpEx once the network is

operational.

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Brownfield Builds Can Reduce Costs

Brownfields

are networks built by extending or

upgrading an existing network, thus

leveraging existing infrastructure to

reduce deployment costs

Leveraging Existing

Infrastructure Can

Lower Costs

To manage costs, providers can work

with state and local entities, as well as

private entities, to leverage existing

infrastructure or planned construction

work in relevant areas (e.g.,

transportation) to lower mobilization

and permitting costs.

Greenfields

are networks built entirely from

scratch and thus deployment costs

are typically higher

The majority of CapEx tends to be in civil works

(e.g., digging, plowing, construction, permitting), and then

in network materials (e.g., fiber) and electronics

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Open Access

Open Access networks, the same physical network infrastructure is utilized by multiple providers delivering services to subscribers. The Open

Access business model has been drawing attention globally as governments and municipalities find the concept of offering competition between

providers and the freedom of choice for the subscriber is essential. It has also proved to be a feasible way to connect rural areas where service

providers might have a hard time generating enough revenue to justify investing in their own network infrastructure.

Unlike more common network arrangements (where one company, owns, operates, and provides services on the network), open access

separates the physical network from the services. An entity owns the network and may contract with a different firms to operate it; multiple

ISPs will provide services on it. Below it’s a diagram of the main component of an Open Access network:

Network

Owner/Operator

Retail Service

Providers

Residential

Businesses

Residential/

Businesses

Subscribers

Infrastructure

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Example of an Open Access Arrangement

Funds construction.

Contracts and pays

operators of the

network. No direct

contact with retailers

or End Users.

Hired by Owner to oversee

construction, maintain the

network and be responsible

about sale and support of the

network services on a

wholesale basis with

retailers. Operators work

with retailers and do not

have contact with End Users.

The retailer buy raw

transit on the network

from the operator and

sells consumer services

such Internet & TV to

the End User. Retailers

are responsible for

marketing their

services and provide

customer service.

The End Users are the

customers at the retail

level , who buy services

for their homes or

businesses. End Users

get billed by the

retailers and have no

sight of the Network

owners or operators.

Network

Owner

Network

Operator

Retailers

(e.g., ISPs)

End User

(e.g., Residential)

Pays for Service

Pay wholesale fees

Disclaimer: The information above is strictly used as an example and does not define or rule how open access arrangements work.

39 Internet For All

Fiber Optics Deployment Costs

Aerial Underground

Typical range $32,000 - $78,500/mile

$51,000 - $220,000/mile

Other common cost drivers Labor wage, fiber cable cost, brownfield vs. greenfield

Typical

range

Dense $500 - $1,000/home passed $700 - $2,200/home passed

Sparse $2,100 - $4,300/home passed $3,400 - $5,900/home passed

Extremely rural > $6,400/home passed > $10,000/home passed

Key cost driver Passing per mile due to density

Typical

range

Dense $700 - $1,600/drop

Sparse & rural $1,500 - $4000/drop

Key cost driver Aerial vs. underground drops; length of drops

Central & distribution electronics per

home connected

$400 - $850/home connected

Customer premises equipment (CPE) per

home connected

$300 - $675/home connected

Middle-mile / backbone construction per

home connected

$300 (urban) - $900 (rural)/home connected

Cost per mile

(CPM)

Cost per

home passed

(CPHP)

Cost per

drop

Other

network

costs per

home

connected

Note: All cost estimates represent "greenfield" development to individual homes, i.e., not discounting for "brownfield" cost savings or deployment model to multi-dwelling units (MDUs).

1. Up to $61,000 in extreme scenarios; 2. Up to $400,000 in extreme scenarios. Wide range reflects vastly different build costs on different topographies; 3. Assume 35% take rate; higher take rates would lower cost; 4.

There is typically economies of scale with central equipment cost—adding new users may incur less marginal cost; 5. CPE costs include fees and materials for installation.

Sources: Rios Partners / BCG expert interviews & analysis, CTC studies, NRTC report, NCHeartGigabit

40 Internet For All

Fiber Optics Deployment Costs (cont’d)

Characteristics

• Medium to high density

• Urban cores

• Medium density

• From near urban cores to

highly rural

• Very low density

• In or near urban cores

• Very low density

• Highly rural and isolated

Unserved

segment

• 14% • 3% • 37% • 46%

Underserved

segment

• 12% • 17% • 34% • 37%

Unconnected

urban

Sparse

suburb/exurb

Rural

and remote

Denser

rural

Sources: Rios Partners / BCG expert interviews & analysis; BroadbandNow OpenData; FCC Form 477 Data (retrieved from BroadbandUSA interactive map) and FCC staff estimate (source); 5-

year ACS Survey (2015-2019) from Census.gov

There are four potentially relevant network rollout archetypes based on unserved" and "underserved" populations, with

implications on costs.

41 Internet For All

Fiber Optics Deployment Costs (cont’d)

sources: Rios Partners / BCG expert interviews & analysis

Build-out

method

Rely heavily on

underground except where

poles are available

Likely rely on aerial Likely rely on aerial Rely heavily on aerial, if FTTH

deployment at all

Estimated

typical aerial

costs

CPM: $78,500 and up

CPHP: $500 - $800

CPM: $47,500 - $63,000

CPHP: $600 - $1,000

CPM: $32,000 - $47,500

CPHP: $2,100 - $4,300

CPM: $32,000 - $47,500

CPHP: > $6,400

Estimated

typical

underground

costs

CPM: $110,000 - $220,000

CPHP: $700 - $2,200

CPM: $75,000 - $110,000

(up to $135,000 in hard

terrain)

CPHP: $950 - $1,700 (up to

$2,100 in hard terrain)

CPM: $51,000 - $64,000

(up to $135,000 in hard

terrain)

CPHP: $3,400 - $5,900

(may exceed $10,000 in hard

terrain)

CPM: $51,000 - $64,000 (may

exceed $400,000 in extreme

terrain)

CPHP: > $10,000

Unconnected

urban

Sparse

suburb /exurb

Rural

and remote

Denser

rural

CPM = Cost Per Mile

FTTH = Fiber To The Home

CPHP = Cost Per Home Passed

THANK YOU

Any Questions?