It’s hard to believe this is the last special section for our 2008 Thought Leaders Forum.  Over these last 6 months, I’ve had the honor of asking some influential people within our segment of the industry some less-than-simple questions.  They’ve impressed me with their answers.  All of our Thought Leaders delivered  well-informed responses with some wise words hinting at their highly evolved leadership skills.

To challenge our Thought Leaders for the last time in 2008, we ask them to take on the most problematic area of our business: operational realities.  The theme of our questions revolves around the balancing act of maintaining the legacy network, investing in the next-gen network AND reducing operational expenses.

Piece of cake, right?  It’s quite the opposite, of course. Shockingly, however, no one said, “It’s impossible to do it all.”  Each had different solutions but not one of our Thought Leaders skirted the issue or tried to diminish the difficulty of the challenge posed.

In fact, many of them are right on the money when it comes to addressing this highly complex and multi-faceted area.  Resoundingly, they agree that we must maintain our core network by working smarter and more efficiently.  We must continue to invest in FTTx technologies AND find ways to make our in-home networks equally as stellar as the outside plant.

HOW to do it?  Here’s where leadership comes into play.  Join them and be a part of the potential solutions. Take a few moments, read their thoughts, and see if you agree.  If not, get on your high horse and tell me it’s YOUR turn to be a Thought Leader in 2009.  We’ll have entirely new questions, entirely new participants, and entirely new ideas.  Isn’t it your turn to tell the industry what’s what?

Questions? Comments? Contact Sharon via her email: sharon@ospmag.com

   
Randy Tomlin
SVP, U-verse Field Operations
AT&T  |  www.att.com

Right now, the average IPTV installation time is about 5.16 hours. How do we decrease that install time, improve the process so future operational maintenance is not costly, and keep our CapEx budgets in line?

Installation time is a big part of the overall experience; customers love IPTV, but they want us in and out of their homes quickly. We know what the challenges are, and we have made substantial reductions in installation times from where we were just a year ago. Some of this is thanks to technology improvements and some to a maturing work force with more on-the-job experience. We know that older inside wiring contributes to extended installation times, and until we have the technology readily available to bypass that component of the installation, we will need to continue to seek other cost-effective solutions. For now, I am focused on simple, documented installation standards – validating the efficiency of each and every step – from the VRAD certification to the technician’s ability to educate the customer on how to use the product to its fullest. Details make all the difference to a flawless installation experience in today’s IP world.

How can providers reduce their operational expenses when they are constantly challenged to add more bandwidth and turn up services quicker? Is the answer new products or better education or both? Why?

The challenge of reducing operational expense while still delivering the velocity required for today’s global network bring us back to the purpose of this series of Thought Leader articles. The answer to the eternal question of how to “go faster and spend less” is the Holy Grail in our business these days. Yes, new products and better education will move the needle, but the real challenge is how to make the right decision on which new product will deliver the desired outcome, and what investment in your workforce will bring the greatest return on the time spent. The reason all the folks contributing to this series are where they are in their careers is because, although none of us have crystal balls (having one would be nice), we are required to make difficult decisions every day that impact a multitude of outcomes, some as basic as job security for our employees. The more we are able to collaborate and share our experiences with others, the better we will all be in the end.

What is the biggest problem we face as a segment of the telecom industry?

Convergence. I cannot think of any other issue that is as critical as our ability to seamlessly integrate wired and wireless services. Networks are evolving, converging, and becoming more efficient and capable. Convergence is required to stay relevant. Movement to a pure IP architecture is our greatest advantage as we evolve as an industry. And with IP as our backbone, our industry is no longer just telecom – the possibilities change dramatically. The sooner we can meet the customer demand for seamless IP at the edge by expanding the next-generation (3G) wireless broadband network, providing more high-bandwidth local access loops and deploying metro fiber-based services where they count, the better I will sleep at night. This is a make-it-or-break-it moment in time with the game-changer knocking at our door. It gives me goose bumps just thinking about it.

Randy Tomlin is Senior Vice President of U-verse Operations, AT&T. He has recently been appointed to this new position on a national level. Most recently Randy has served as Senior Vice President of Network Services West as well as Senior Vice President Network Operations Planning. Since joining SBC in 1982, the College Station, Texas, native has held management positions in various departments throughout the Company, including engineering, technical planning, installation and repair, research and development,
and centralized operations. Randy can be reached via email: ufo@att.com.
 

    
Tim Parker
President, Byers Engineering Division
Byers Engineering  |  www.byers.com

Right now, the average IPTV installation time is about 5.16 hours. How do we decrease that install time, improve the process so future operational maintenance is not costly, and keep our CapEx budgets in line?

A more comprehensive testing strategy needs to be explored. An all-inclusive testing plan must be developed to test the delivery from the head-end to the set-top box. Testing today is primarily for specific network elements. The problem is caused by the absence of an all-inclusive test of network and application performance in a unified way. The service providers must develop a single testing plan to support an integrated IPTV testing that includes system test and end to end service delivery. To address the delivery technology a wireline/wireless hybrid should be explored. A Distributed Antenna System (DAS) solution might fulfill the objective. These networks are being built all over the country to satisfy the needs of the wireless providers. Perhaps this technology could be adapted to the IPTV delivery system.

How can providers reduce their operational expenses when they are constantly challenged to add more bandwidth and turn up services quicker? Is the answer new products or better education or both? Why?

The answer is both. Training needs to be inclusive of an elite team of highly trained technicians that have been provided a detailed package of the entire system and delivery system. The team needs to be excluded from other assignments. As each serving area is turned up, this team needs to fully load the network with emulation of a heavy traffic load. Generally, each element is tested separately and failures are discovered only after the load is applied. Separate system and network testing and validation works poorly causing time consuming adjustments. New testing products need to be developed to emulate real-world traffic scenarios to coordinate tests of the services and applications deployed on the network.

What is the biggest problem we face as a segment of the telecom industry?

A well-trained staff is the number one challenge. The second most important challenge will be technology, which will be market driven. But, regardless of the technology selected, if a well-trained and customer-oriented staff is not available, it is unlikely that the provider will prosper. One avenue may be to utilize outside contractors to bridge the gap until the provider can field its own staff.  Contractors are also useful in working through the simple peaks and valleys of the business cycle. This training and use of contract help should be considered in all segments of the providers business. A well-thought-out plan can benefit the delivery of service at all levels.

Tim Parker is responsible for the overall business operations of the Engineering Division of Byers Engineering Company. The Engineering Division provides outside and inside plant project management and design services to the telecommunications and utility industries. The Division’s 1,100 employees include routine and senior design personnel, CAD technicians, registered communications distribution designers, professional engineers, special right-of-way and permitting agents, and marketing, recruiting, and support personnel.

Tim Parker joined the firm as a telecommunications field engineer in 1979. He represented the firm in various technical assignments throughout the Southeast before joining the management team in 1985. In 1992 he was promoted to Assistant Vice-President over engineering, and in 1994 he assumed responsibility for all underground utility locating services in Georgia. In this role he also served as a member of the Georgia Utilities Coordination Committee in the Cobb, Cherokee, and Gwinnett county chapters. Tim also served on the Georgia Utilities Coordinating Council’s Ad-Hoc Legislative Committee (Georgia Dig Law revisions). Tim can be reached via email: tim.parker@byers.com.
 

   
Manish Bhandari
Vice President, Global Sales and Marketing, Emerson Network Power’s Energy Systems business
Emerson Network Power  |  www.emersonnetworkpower.com

How will the industry provide symmetrical higher-bandwidth speeds (54 Mbps and above) to end-users who don’t and won’t have the option of receiving FTTH?  How do providers today balance their investments for the future with their need to utilize the legacy network to its fullest?

At a conceptual level, and avoiding the ifs, ands, or buts of specific scenarios, the answer will continue to rely on the deployment of hybrid technologies and solutions. There is critical mass in the subscriber numbers for non-FTTH areas; the oft-discussed FTTx technologies all provide a solution at different cost points.

However, possibly the most important charter for the OSP industry is to design solutions that take the existing transmission medium of copper and fiber and combine it with air (wireless) technology. Investment in wireless technology for customer premises or The Last 100 Yards can not only reduce the deployment cost/time significantly, it can also drive down total operating costs. This needs to be a joint undertaking between the companies working on the signal and those working on infrastructure. The right technology with the correct solution package will deliver the required solution.

How can providers reduce their operational expenses when they are constantly challenged to add more bandwidth and turn up services quicker? Is the answer new products or better education or both? Why?

More bandwidth is simply a demand for more capacity which essentially requires investment. However, the capital expenditure required to deliver the marginal unit of capacity is often much less when compared to the original/initial capacity investment. Operating costs, on the other hand, do not get the benefit of the marginal unit cost, and tend to increase in a straight line.

The overall bandwidth demand presents a unique opportunity for reduction of total “operating” costs. The demand creates scenarios where the deployments of remote energy optimization solutions actually become viable due to critical mass. Education and training always are useful to optimize an asset base and, if it is combined with new umbrella solutions for cost reductions, the training investment will leverage extremely well. Over a period of time, operating cost optimization will make its way back to the capital expenditure side of the fence where requirements will be evaluated on Total Cost of Ownership combined with non-conventional solutions.

What is the biggest problem we face as a segment of the telecom industry?

The issue for the telecom industry and OSP as a segment is the same: volatility. Volatility creates uncertainty which at the most fundamental level either constrains investments or directs investments into a singular solution approach - a classic one-trick pony. Hence the steep rise and fall in the valuations of the companies.

While operational refinements, such as better forecasting and communication, are indeed important, I believe the solution primarily lies with the business model of the manufacturing companies operating in the OSP space. The primary action at the front end requires globalization of the customer base for all core product lines. This reduces the reliance on a specific geographic area. The product strategy needs to drive commonality of components, which paradoxically must be designed to drive unique solutions. The customer benefits from the reduction of spare parts inventory as well as reduced lead times. Additionally, an operational strategy is required to support the above and provide increased productivity. While this does not take away all the problems, it incentivizes the customers and suppliers in the OSP space to manage the challenges of volatility.

Manish Bhandari leads Global Sales and Marketing for Emerson Network Power’s Energy Systems business. Energy Systems is a provider of telecommunications solutions through its DC Power, Outside Plant, and Service product portfolio. Mr. Bhandari previously was responsible for strategic planning activities for Emerson Network Power, including the acquisition of the Marconi OPP&S business. After that acquisition, he joined Energy Systems and was responsible for the enterprise and Outside Plant business. Manish can be reached via email: manish.bhandari@emerson.com and via email EnergySystems@EmersonNetworkPower.com.

   
Étienne Gagnon
Vice President, Product Management and Marketing
EXFO  |  www.exfo.com

How will the industry provide symmetrical higher-bandwidth speeds (54 Mbps and above) to end-users who don’t and won’t have the option of receiving FTTH?  How do providers today balance their investments for the future with their need to utilize the legacy network to its fullest?

It is common knowledge that hybrid fiber coaxial (HFC) network, using channel bonding with DOCSIS 3.0, allows this level of performance. Time will tell if existing copper telephone infrastructure will allow better performance than what VDSL2 technology can provide. For the wireless technology to achieve this target, time will tell also, but I fear that latency issues may be a more serious limiting factor for video services delivery than plain bandwidth performance. I consider that 802.11n has a great potential inside the home, to transport all services including HD video. Laying fiber in the access network is a proposition that needs to be analyzed diligently, a solid business case has to be associated to the FTTH project, it involves significant construction work and therefore it is relatively costly.  FTTH costs are decreasing and FTTH benefits are very clear: no bandwidth limitation and a network with the minimal OpEx an operator can expect.

Right now, the average IPTV installation time is about 5.16 hours. How do we decrease that install time, improve the process so future operational maintenance is not costly, and keep our CapEx budgets in line?

Operators have to rely on coaxial cable, Category 3 (POTS) or Category 5 or 6 (Ethernet) cables, using MoCA or HPNA protocol for the home network because wireless technology, even 802.11n, is not still up to speed, particularly for video service deliveries. In this situation, the main challenge we have seen the network operators facing is to re-use the maximum amount of existing cable already installed in the customer premises.  Validating the performance of these existing cables with the proper test tools will take a small fraction of the extra time required to installing brand new cables, which is one of the most time consuming task one technician may face in a new install.  Well-defined procedures, including the pre-configuration of set-top boxes and gateways, and proper training and support to technicians, are the best guarantee to keep the installation time budget of new installs under control.

How can providers reduce their operational expenses when they are constantly challenged to add more bandwidth and turn up services quicker? Is the answer new products or better education or both? Why?

I don’t believe the answer is exclusively new products; a better mousetrap will always exist.  This being said, network operators have to improve their network and integrate new technologies in order to fulfill the new services required by their customers and, in the same time, remained competitive against their competitors.  I believe that network operators have to find the right balance between introducing new technologies and blending those new assets with their legacy equipments.  To succeed, the most important thing is to develop a great win-win relationship with all its vendors and get all equipments and software, new and legacy, work in symbiosis, along with staffs and procedures.  Then OpEx and CapEx shall all be under control, creating a profit.  This perspective is not short-term, and this is where the education part comes in: operators who succeed are those who build a precise plan around a great vision and follow it closely.

Étienne Gagnon was appointed Vice-President of Product Management and Marketing in May 2003 and, in May 2007, he took on the responsibility of all the telecom business units:  Optical, Transport and Datacom, and Access. As such, he is responsible for EXFO’s general marketing direction on both the product level and communications level. Mr. Gagnon is also responsible for the marketing communications of EXFO Brix Service Assurance, further to the completion of the acquisition in April 2008. Étienne can be reached via email: etienne.gagnon@exfo.com.

   
Tammy Snyder
Network Operations Center Supervisor
Gainesville Regional Utilities (GRU)  |  www.gru.com

Right now, the average IPTV installation time is about 5.16 hours. How do we decrease that install time, improve the process so future operational maintenance is not costly, and keep our CapEx budgets in line?

I think the caveat “right now” speaks for itself.  Over time, I would expect the install time to decrease as processes are refined and equipment is perfected.  In order to keep CapEx in line, providers must be diligent in researching equipment and refining processes.  Before putting new equipment into our network, we use our internal employees as beta testers.  Network folks who will ultimately support the end user are absolutely perfect for testing because they look for points of failure and come up with a recovery plan before equipment hits the field.  If equipment doesn’t pass our in-house test, we don’t put it in the field.  When we find equipment that meets our needs, we standardize as much as possible on to minimize training and confusion for our technicians.

How can providers reduce their operational expenses when they are constantly challenged to add more bandwidth and turn up services quicker? Is the answer new products or better education or both? Why?

I think the answer is clearly both. New products are constantly being developed and should be evaluated for their ROI to your organization. Ask your internal experts to conduct research on new products that might be available.  An example of optimizing new products is the monitoring system installed at GRU that helps our Network Operations Center Staff keep an eye on our network.  This allows us to respond often times before the end user is even aware of an issue.  Because we have an active Ethernet system, we are able to respond quickly to issues such as bandwidth usage.

Education is also critical as our industry is going through phenomenal changes right now, and as providers we are expected to be the experts. We all must educate ourselves and then respect and educate our customers in order to manage expectations.  If we don’t meet our customer’s expectations, someone else will.

What is the biggest problem we face as a segment of the telecom industry?

I think the biggest issue we face is trying to balance CapEx with customer expectations.  It is difficult to keep staff up to date on technology while balancing the CapEx of keeping up with that technology.  On the other hand, in order to remain competitive we must provide the services that customers expect and deliver those services when expected.  It is a fine balance. To remain profitable we have to somehow find that balance while still being creative.

Tammy Snyder has been with Gainesville Regional Utilities (GRU) for 21 years. Since 1998 she has supervised the Network Operations Center for GRUCom, the telecommunications arm of the utility. In addition, Tammy serves as the Sales Representative for GRUCom’s Residential Broadband service, and holds primary responsibility for negotiating contracts and maintaining customer satisfaction for
high-speed, fiber-optic-based Internet service to large apartment complexes in Gainesville, Florida. Tammy can be reached via email: SnyderTJ@gru.com.

   
John Rose
President
OPASTCO  |  www.opastco.org

How will the industry provide symmetrical higher-bandwidth speeds (54 Mbps and above) to end-users who don’t and won’t have the option of receiving FTTH?  How do providers today balance their investments for the future with their need to utilize the legacy network to its fullest?

Technology advancements are happening so quickly that eventually everyone will have the capability to receive FTTH.  Advancements such as Extended Reach GPON are already increasing the reach of FTTH, and as consumer demand for broadband extensive services continues to grow, it will become much more affordable to install FTTH everywhere.

For rural America, the real balance isn’t just between investments for the future and utilizing the legacy network: it is developing a national broadband plan that ensures that rural service areas can deploy FTTH in a manner that keeps costs and services comparable with the rest of the country, and recognizes the crucial role of the legacy network and understands its needs for upgrades and maintenance.

How can providers reduce their operational expenses when they are constantly challenged to add more bandwidth and turn up services quicker? Is the answer new products or better education or both? Why?

Providers are facing big challenges when it comes to adding more bandwidth and turning up services quicker because there is no one magic bullet bundle of services that all customers will take.  Developing economies of scale will become more and more difficult as providers add more services and products.  Educating provider personnel will be helpful, but that alone will not solve the challenge of reducing costs.

Our industry has gotten away from recognizing that the best answer isn’t always to buy our own equipment and go it alone.  Internet backhaul and bandwidth transport savings are being enjoyed by providers that have worked together to create statewide fiber networks.  They pay less for their transport and can go after new business more competitively because they have given up full control of the network and share feature-adding network equipment.  Providers need to think creatively about other ways they can share equipment and personnel to keep expenses down while meeting customer demands.

Telecom futurists now envision “cloud computing” as a cost-savings advancement that would allow companies to store and operate their computers from cyberspace.  Network administrators and individually owned hardware would become a thing of the past if all computing functions occurred over the Internet.

What is the biggest problem we face as a segment of the telecom industry?

The biggest problem that telecommunications companies in rural America face is the need for regulation to keep up with technological and market changes in the industry.  Regulators must address the need not just for broadband access everywhere, but the need for bandwidth that sufficiently meets the needs of customers.  Online applications require far more bandwidth than the “first generation data” and “basic broadband tier 1” definitions that the FCC uses today.  Companies that trumpet 1 Mbps broadband service are behind the curve.  Regulation needs to address the need for 10, 50, and 100 Mbps broadband services, and ensure that rules promote greater bandwidth rather than create obstacles to network infrastructure investment that allow providers to meet customers’ bandwidth needs today and tomorrow.

John Rose is president of the Organization for the Promotion and Advancement of Small Telecommunications Companies (OPASTCO). His career in telecommunications began more than 39 years ago at C&P Telephone Company. Rose worked for the Rural Electrification Administration, now known as the Rural Utilities Services (RUS), serving first as chief of the Loans and Management Branch and later as director of the Telecommunications Management Decision. He also worked for the United States Telecom Association, now known as US Telecom. John can be reached via email: membership@opastco.org.

   
Dennis Krutsinger
Vice President and General Manager,
Communications Markets Division, 3M  |  www.3M.com/telecom

How will the industry provide symmetrical higher-bandwidth speeds (54 Mbps and above) to end-users who don’t and won’t have the option of receiving FTTH?  How do providers today balance their investments for the future with their need to utilize the legacy network to its fullest?

Upgrading the copper network in The Last Mile is usually cheaper than overlaying a fiber network. However, it requires a thorough rehabbing of the copper plant and the migration of DSLAMs to cabinets that are much closer to the end consumer. Undergoing a copper plant rehab typically includes re-engineering the existing plant to result in a dedicated single pair to each home; refurbishing the cable plant to guarantee that the cable can function at the highest bandwidth capability; and partnering with electronic and software vendors to accelerate technical development of systems that can move more information faster and farther on that copper network.

Although asymmetrical, the resulting performance satisfies the majority of current consumer expectations. But it might not satisfy tomorrow’s demands. Despite the progress achieved in compression technologies, FTTH may be required for the new consumer in the next 5 to 10 years. How soon will also depend on progress achieved by wireless broadband, and to the degree in which consumers will demand HDTV on larger and higher definition screens.

Right now, the average IPTV installation time is about 5.16 hours. How do we decrease that install time, improve the process so future operational maintenance is not costly, and keep our CapEx budgets in line?

At 3M, we have focused our design efforts around products that simplify the installation practice, minimize the capital investment, and allow for rapid deployment. The essence of each of these criteria can be seen in products such as our SLiC Terminal and our NPC connectors used for the final drop cable used to add service to a customer in a FTTH deployment.

Case in point, Multimedia Research Group has reported the average IPTV installation time in North America is higher than Asia and Europe. One of the key differences between these groups is FTTH drop cable installation method. In North America, most service providers use fusion splices or factory terminated drop cables, but almost all FTTH drops in Asia and Europe use mechanical splice connectivity solutions. One large Japanese service has stated that mechanically connected drops reduced their splice installation time by 50%, relative to fusion splicing, because of decreased time to set up and put up the equipment.

Thus, developing easy-to-use and smarter products that will reduce install time, limit truck rolls, and help keep CapEx under control is a must for every supplier.

How can providers reduce their operational expenses when they are constantly challenged to add more bandwidth and turn up services quicker? Is the answer new products or better education or both? Why?

Our answer is to switch to products designed for ease-of-use and durability. New products can save on OpEx each time a provider has to turn on a new subscriber. As I mentioned previously, new mechanical connectivity solutions for the drop have increased FTTH deployment speed relative to fusion splicing, which decreases operational expenses per home connected. If ever there is a problem on the line, the latest test equipment can pin-point exactly what the problem is and where, saving on truck rolls and labor. While these new solutions do not require a lot of time and expensive training, education and consultation remains an important factor. This is why the best suppliers are deploying on-line education tools and work closely with their customers on total cost of ownership modeling and solutions specific to their individual needs.

Dennis Krutsinger brings more than 30 years of industry experience to his role as 3M Communication Markets Division vice president and general manager. His 3M career began in 1977 when he joined the Microfilm Products Division as a sales representative in Denver, Colorado. Since then he has held numerous leadership roles in sales and marketing as well as business development for 3M in Brussels, Belgium, and Taiwan. As vice president and general manager for the Communication Markets Division, Mr. Krutsinger leads a global team, based in Austin, Texas, that provides practical, scalable solutions to telecommunications service providers around the world. 3M can be reached via email: commtech@3M.com.