Building the Business Case for a Connected City. Economic Prosperity Steering Committee Calgary Regional Partnership March 23, 2016

Transcription

1 1 Building the Business Case for a Connected City Economic Prosperity Steering Committee Calgary Regional Partnership March 23, 2016

2 2 Building the Business Case 1. Challenges in developing the business case 2. Strategies for developing the business case 3. Why building sustainable communication infrastructure for municipal services is important

3 3 Is it about Broadband or Connectivity? Broadband or Internet Government Networks Utility Networks Telecomm Networks Education Networks Enterprise Networks Rich Connectivity = Healthy Digital Ecosystem Accessible Dark Fibre

4 What is Dark Fibre? Its Infrastructure 4

5 5 Digital Infrastructure (fibre) is essential for Municipal Services 1. Disaster Recovery 2. Critical Infrastructure 3. Law Enforcement 4. Asset Management 5. Citizen Services 6. Public Safety

6 Buildings Future Intersections Lift Cameras Vehicles Opportunities Stations M2M OWC Worldwide CONNECTED 50 Billion bycity 2020 Cameras : Remote A number of businesses rely on Cameras for Traffic their Controller: operations. Offices Over 1200 TrafficFlow Controllers Roads Traffic Buses: Waters City Remote Over Lift Stations 1000 Offices: buses andwirelessly Storm Ponds: communicating Fleet Vehicles: Bus Stops: Located at numerous intersections. Machine to Machine Communication Various Transit LRT Security 240instrumentation +Fleet offices throughout used for themonitoring. city. Over 2000 Vehicles Wirelessly Numerous Bus Stops Intelligence forthe the control ofm2m the signals. IsWater Exploding, amount of Monitor High Levels in the Rivers Communicating 150 sites connected with / 80 at 1GIG In the future their may befibre a greater need to communication within the City of Calgary will be CPS Enforcement: Red Light / Green Light connect Snow plow / sanders, e.g. Next Bus Display, Digital Field communications like accelerating. Corporate Security: Safety Advertising waste and etc. recycling trucks, Message boards and Road Sensors, etc. lawn mowers 6

7 CYBER Security 7

8 8 Smart City Concepts Fibre to the Traffic Controllers Traffic Controller Fibre Network Pull Box and FOSC

9 Smart City Concepts Intelligent Intersections Roads Camera Wireless antennae Secure Networks MPLS Network Fibre 9

10 10

11 Emergency Operation Center 11

12 Is Fibre Optic Expensive? 12

13 80-85% of the Cost of fibre is putting conduit in the ground 13

14 The Municipal Advantage A Better Way! Conduit for Traffic Communications Conduit for Traffic Power Conduit for Street Lights LRT Duct Banks Conduit for Sanitary, Storm and Water Fibre Optics can be installed in: Traffic and LRT Conduit 14

15 Reducing Costs 15

16 How Much Fibre Does Calgary Use? 16

17 17 Setting the Stage: Infrastructure Lifecycle Event It is incumbent on all Municipalities to consider how this event will impact The City, the Community and the Citizens. Once a Century

18 18 Isn t this the job of the incumbent? THERE IS NO FIBRE OPTIC INCUMBENT!!!! AND FIBRE IS UNREGULATED

19 19 Four biggest challenges for The City of Calgary 1. Managing the Rights of Way (ROW) is challenging and will only get worse as duplicate infrastructure accelerates. 2. Cost effective Connectivity for The City IoT and Smart City Trends are drivers. 3. Protecting City s ability to self provision services Relies on infrastructure and access to ROW s. 4. Community inequities are inevitable What's the plan?

20 20 What do Municipalities need to do? 1. Understand how this lifecycle will evolve and how it will affect your community. 2. Strengthen Policies - e.g. MCAA, ByLaws 3. Participate Play an active role

21 21 RISKS What if we don t do this! Impact to Municipal Rights-of-Way (ROW) 1. Carriers typically do not license fibre to their competitors, forcing multiple installations of fibre which degrade or exhaust Rights-of-Way (ROW). Similar to the issue of cell towers, carriers have chosen to build duplicate tower infrastructure versus sharing. 2. Carriers are seeking second alignments and possibly third alignments for their installations. ROW exhaust is inevitable. 3. Congestion in the ROW will also occur above ground. Fibre cabinets (fibre furniture will end up in boulevards, laneways and on front lawns. 4. When ROW are congested or exhausted The City will be challenged in meeting its statutory obligations.

22 Above ground infrastructure in ROW s 22

23 Impact to City assets and work around costs 23

24 ROW CRTC 24

25 Its REAL! 25

26 ROW Congestion 26

27 Essential Facilities Are Limited Resources 27

28 28 RISKS What if we don t do this! 2. City Services Negatively Impacted a) Next Generation Services slowed or halted 1. Smart City infrastructure Intelligent Traffic Systems. 2. Public Safety Cameras, Analytics, Big Data 3. Security Cyber Security Threats are escalating Fibre is more secure b) Higher City Service Costs 3. Monopoly Provider a) The lack of access to fibre will lead to, either, reduced or no competition. b) Which leads to a poor innovation environment (Digital Ecosystem). 4. Community Inequities a) There is no mandate to serve the communities equally. b) Carriers will only build where profitable.

29 29 What Characteristics Make a Good Model? 1. Ownership 2. Protecting Rights-of-Way and Support Structures 3. Fair and Equal Access 4. Accessibility to all Communities 5. Choice for the Community

30 30 City of Calgary Fibre Infrastructure Strategy 1. Accelerating fibre to stranded City facilities 2. Proactive approach with greenfield 3. OLSH and IT to develop a model for greenfield business parks e.g. Aurora and Transit Oriented Developments 4. License excess capacity to fund future fibre builds and cover operating expenses- Dark fibre provider

31 31 Recommendation: Accelerate fibre deployment to connect City services Deploy fibre down major and minor Roads. Benefits: a. Connect over 450 Traffic Controllers b. Connect numerous other city sites c. Revenue opportunities along all roadways via businesses and other agencies.

32 32 Green Field Developments Recommendation: Take advantage of greenfield opportunities Benefits: a. Protect City services b. 75% Savings c. Capacity for new services Reduce future third party provider costs

33 33 Aurora Business Park Recommendation: IT will work with the Office of Land Servicing and Housing on developing a fibre optic deployment strategy and funding model in line with the vision and objectives of the Aurora Business Park and other Transit-Oriented Development opportunities. Benefits a. Attract high tech companies to Calgary, and diversify City revenue streams. b. Revenues from land appreciation plus revenues from dark fibre lease.

34 34 Fibre Infrastructure Provider (Open Access Fibre) 1. Equal Access (Non-Discriminatory) 2. City maintains 100% ownership 3. Payback model for last mile.

35 Foot Print of Sustainable Communications Infrastructure for City Services 35

36 36 Enable Broadband FOR THE COST OF A CUP OF COFFEE! Broadband Begins HERE ALIGNING PLANNING COORDINATING AGGREGATING VALUE SUNK COST Muni Purposes

37 37

38 38 Traps and Pitfalls to AVOID! Risk Mitigation 1. The Race to become a Gigabit City a. Test against outcomes (sustainability, inclusion, choice, competition) b. Time - It doesn t have to happen all at once!!! c. A Monopoly provider introduces numerous risks 2. Partnerships What to consider? 1. Capture Infrastructure, Network, Services, Audience 1. Asset Ownership conduit or fibre? 2. Contracts

39 39 Conclusion 1. Dark Fibre is the foundation for a healthy digital ecosystem 2. Municipalities have numerous obligations from City services to social concerns like inclusion. 3. There is a infrastructure lifecycle occurring that happens once a century. 4. Long term planning can mitigate risks and enable a prosperous 21 century community.

40 40 Municipal Related CRTC Interventions and Applications 1. TNC CRTC Review of wholesale services and associated policies City of Calgary: 2. TRP CRTC Review of wholesale wireline services and associated policies: All Responses: 3. Request for Commission direction to utilize the Model Municipal Access Agreement as basis for negotiations (Shaw, Telus, Allstream, Bell, Rogers). Commission Response: 4. Telecom Decision CRTC : Hamilton and Bell Canada Commission Response: