The Nexicom Group - Rural Ontario Institute

The Nexicom Group
Technology, Policy, Impact
Began in a rural Ontario village...1898
• Dr. Turner – Millbrook Physician
• Ed Downs – purchased company 1942
• Sons, John and Paul Downs
carry on family traditions
Who is Nexicom now?
The Nexicom Group actually consists of six
communication companies
• Nexicom Telephones (Local Telephone & LD Service)
(400 square km southeast of Peterborough)
• Nexicom Telecommunications (Local Telephone & LD Service)
(350 square km southwest of Peterborough)
• Nexicom Communications (Cable TV & Security Systems)
• Nexicom Systems (Telecommunications Wholesaler)
• Nexicom Inc. (Internet Service Provider)
• Nexicom Mobility Inc. (Cellular Service)
* Employs over 80 people locally *
Telephone
Current areas where we offer home and business
telephone service are:
• Millbrook, Cavan, Keene --- as an ILEC
• Peterborough and Lindsay --- as a CLEC
• Lakefield and Bridgenorth --- as a CLEC
(Utilizing Cable infrastructure)
• Wireless VoIP --- as a CLEC
Internet
Currently, Nexicom offers internet service
throughout Ontario and Quebec through various
types of technology:
• DSL (Digital Service Line)
• Wireless Broadband
• Cable Modem
• Dial-up
Wireless Broadband Network
•
•
•
•
Bridgenorth - 2004 (Nexicom)
Apsley - 2005 (OMAFRA/Nexicom)
Youngs Point & Buckhorn - 2005 (Nexicom)
12 Towers - 2006/2007
•
•
14 Towers - 2008/2009
•
•
(County of Peterborough/Nexicom)
(County of Peterborough/Nexicom/OMAFRA)
35 Towers - 2012
Wireless Broadband Technology
•
Technology deployed
•
•
•
Trango
Motorola
Spectrum
900 Mhz
• 2.4 Ghz
• 5.4 Ghz
(all of which delivering 3 Mbps down)
•
EOWC/EORN Initiative --- 2011/2012
• Eastern Ontario Wardens Caucus/Eastern Ontario
Regional Network
• Kawartha Haliburton Region
• County of Peterborough, Haliburton, Lindsay
• Awarded to three companies
• Nexicom
• Bell Aliant
• Xplorenet
EOWC/EORN Initiative --- 2011/2012 (Cont’d)
* Nexicom was awarded two projects:
•Wireless Broadband
•
25 Towers – Motorola
•
Bandwidth – up to 10 Mbps down/1 Mbps up
•
Spectrum – 3.65 Ghz
•Fiber optic
•
Mount Pleasant, Ontario – GPON
•
Bandwidth – 12 Mbps down/6 Mbps up (capacity for 100 Mbps +)
Policy and Impact
• County of Peterborough; Nexicom; OMAFRA;
EOWC/EORN
• Policy of public (government)/private (Nexicom)
partnership essential to ensure rural access to broadband
• Policy of high speed broadband access to all business and
residential customers --- essential
• Impact --- enormous!
• Economic and Social Impact for Rural Eastern Ontario
communities --- businesses, tourism, education, health
care…
Where do we go from here?
• CHALLENGE --- where do we go from here?
•
100 Mbps is the next step……….then 1 Gig
•
To be competitive in the world marketplace we must get
there soon
•
Fiber optic provisioning is “the” access
Food for thought…
* Dr. Doug Bower, Manager, E-Business , Ministry of
Economic Development & Innovation reported at 2012
Canadian ISP Summit…
South Korea…….1 Gig/second …..2012
Singapore…. 95% of homes & businesses to 1 Gig/second
over fiber by end of 2012.
THANK YOU
Reflections from Industry
Dec. 4, 2012
Why the Internet?
• A 10% growth in broadband
penetration adds 1-3% percent
to a country’s gross domestic
product
• 80% of GDP growth comes from
the introduction of new
technology
• 50% of productivity growth in
the private sector comes from
the use of ICT
Stats: “Seizing Our Destiny”, by
the Intelligent Community Forum
Rural Broadband
Why the Internet?
• Aids economic growth
– Entrepreneurs need it to start new businesses
– Small businesses research/buy/sell products & services
– Helps attracts citizens/workers to rural communities
• It increases home resale value
• Federal, Provincial, Municipal services delivery mechanism
• It is an “expected” utility for the next generation:
– Today’s youth expect (social networking, education, entertainment)
– Like electricity and plumbing, today’s consumer products are connecting
to the Internet (TV, Printer, Lighting, Thermostats, Camera...)
– Next “Cable TV” as a source of entertainment
“From Novelty to Necessity”
Challenges
• Wireless - The Good, The Bad, The Ugly
– Good: High Demand, Reliable
– Bad: New Radio Transmissions are unwelcome
– Ugly: Towers
• Customer Service – Reaching Remote Customers
– Timely Repairs
– Difficult Access
– Part-time Residents
• Regulatory & Municipalities – One size does not fit all
–
–
–
–
Spectrum – Available for all uses
Tower Builds – 50’ vs. 100’ vs. 300’
Building Permits – Communication tower not like a house extension
Timely response to process - All
Challenges - Getting Creative
Tower Builds
Challenges – Better Support
Regional Offices
Perth
Storm’s Network
Rivals Urban Service
Plan
Starter
Silver
Gold
Platinum
Monthly Fee
$40
$50
$60
$85
Radio Rental
$10
$10
$10
$10
Download Speed
3Mbps
5Mbps
10Mbps
10Mbps
Upload Speed
1Mbps
1Mbps
1Mbps
5Mbps
Data Cap
50GB
50GB
100GB
200GB
Quality Surfing
Teenager
Rich Content
Teenagers
Summary
• Building a Rural Broadband “Utility” is like Hydro
– Time Consuming
– Expensive
– Labour Intensive
• Choices are limited, Expectations are high
– In many cases you are the only choice
– Becoming a basic necessity of rural life
• Thanks
– EOWC/EORN
– Conferences that educate
RURAL BROADBAND
IN CANADA
Connecting the Future: Rural
Broadband Technology, Policy
and Impacts
December 4th 2012
High speed internet – for all of Canada
xplornet.com
WHO IS XPLORNET?
Our
Mission:
Make
affordable,
robust
broadband
available to
every rural
Canadian
home
Xplornet started in December 2004
– 160,000+ subscribers and 500+ employees today
Driven by Private Capital: $800 Million
– $400 million invested to-date + $400 million committed to new
high throughput satellites
– One of few high-growth companies to raise capital post-2008
meltdown
– $350 million raised in 2011/2012: over 65% from Canadian
investors
– Public subsidies represent single digit % of total capital
invested
1
UNIQUE HYBRID DELIVERY MODEL
Fixed Wireless
Fixed Wireless
networks for
higher density
rural regions
Satellite
technology for
low density
and hard to
reach rural
locations
Satellite Broadband
2
WHERE IS XPLORNET?
100% COVERAGE
•
Based in Woodstock, NB with
corporate offices in Markham, ON
•
2 Bilingual Call Centers – 24x7
operations
•
•
•
+800 wireless sites
2 New High Throughput Satellites
+3000 Dealers/installer across the
country focused on rural subscribers
3
A RECORD OF WORKING WITH LOCAL GOVERNMENT
Rural Broadband Expansion Projects
Region
Type
Community/Province
Ontario
Municipal
City of Ottawa
2007
Over 35 P3 programs across
the country – provincial,
regional, and municipal:
Ontario
OMAFRA
United Counties of Leeds and Grenville
2007
Ontario
OMAFRA
Township of North Glengarry
2007
Ontario
OMAFRA
City of Kawartha Lakes
2007
Ontario
OMAFRA
Town of Milton
2007
Ontario
OMAFRA
County of Hastings
2007
Manitoba
Municipal
Hanover
2008
• Provinces:
• New Brunswick
• Saskatchewan (SaskTel)
• Newfoundland
• Ontario - Easter Ontario
Wardens Caucus (EOWC)
• Quebec – Broadband
Canada
• Alberta **NEW**
Ontario
OMAFRA
County of Frontenac
2008
Ontario
OMAFRA
City of Kawartha Lakes
2008
Ontario
OMAFRA
County of Northumberland
2008
Ontario
OMAFRA
County of Hastings
2009
Ontario
OMAFRA
County of Lennox and Addington
2009
Ontario
OMAFRA
United Counties of Stormont, Dundas, and Glengarry
2009
New Brunswick
Provincial
New Brunswick
2009
Saskatchewan
Provincial
SaskTel
2009
Ontario
Broadband Canada
Broadband Canada GSA ON3580
2010
Quebec
Broadband Canada
Broadband Canada GSA QC2415 Bas St. Laurent
2010
Quebec
Provincial
QC 2415 Bas St. Laurent
2010
Quebec
Broadband Canada
Broadband Canada GSA QC2425
2010
Quebec
Broadband Canada
Broadband Canada GSA QC2430
2010
Quebec
Broadband Canada
Broadband Canada GSA QC2433
2010
Quebec
Broadband Canada
Broadband Canada GSA QC2450
2010
• Hanover Manitoba
Quebec
Broadband Canada
Broadband Canada GSA QC2470
2010
Quebec
Broadband Canada
Broadband Canada GSA QC2475
2010
Ontario
EOWC
EOWC Satellite
2010
Quebec
MAMROT
Manicougan
2010
Quebec
MAMROT
Argenteuil
2010
Alberta
Municipal
Camrose County
2010
Ontario
OMAFRA
County of Wellington
2010
Ontario
OMAFRA
County of Grey
2010
Ontario
OMAFRA
United Counties of Prescott and Russell
2010
Ontario
EOWC
Zone 1: Embrun
2011
Ontario
EOWC
Zone 2: Quinte Loyalist
2011
Ontario
EOWC
Zone 3a: Northumberland
2011
Ontario
EOWC
Zone 3c: South Nation
2011
Ontario
EOWC
Zone 4b: Kawartha
2011
• City of Ottawa
Year
4
REFLECTIONS…..
- % Adoption not
% Coverage is key
rural challenge
Adoption
Capacity
Economics
- Spectrum
- Satellite Capacity
Costs/Lead-time
5
THANK YOU
XPLORNET INTERNET SERVICES CANADIAN OFFICE LOCATIONS
Head Office
Fredericton Customer Care Centre
140 Alison Boulevard
300 Lockhart Mill Road
P.O. Box 9060
FrederictonNew Brunswick E3C 0A9
WoodstockNew Brunswick Toll Free: 1-866-841-6001
E7M 6B5
Phone: (506) 328-8853
Fax: 1-800-862-1233
Xplornet Communications Inc.
Calgary Sales Office
#6 – 118 Village Heights S.W.
Calgary, Alberta T3H 2L2
High speed internet – for all of Canada
Markham Office
625 Cochrane Drive
Suite 1000
Markham
Ontario L3R 9R9
Phone: (905) 513-9757
Fax: (905) 513-0443
xplornet.com
SPECTRUM LICENCE PROBLEM:
DURHAM EXAMPLE
Toronto Licence 4-077 (Tier 4)
Licence boundary
Durham Regional
Municipality
Cells that are
defined as “High
Density” population
Population:
Toronto (urban) 94%
Rural
6%
7
SPECTRUM LICENCE PROBLEM: ESSEX
Windsor/Leamington Licence 4-090 (Tier 4)
Cells that are
defined as “High
Density” population
Xplornet towers
Licence boundary
Population:
Windsor (urban) 62%
Rural
38%
8
Reflections from Government
Martin Bohl, Director of Rural Programs Branch
Ontario Ministry of Agriculture, Food and Rural
Affairs (OMAFRA)
December 4, 2012
Introduction
Rural Infrastructure Programs at OMAFRA
•
Administered over $1.3 Billion in infrastructure funding since 2009.
•
Funding programs priorities included roads, bridges, water and wastewater and broadband infrastructure.
•
Currently overseeing the transformation of the Rural Programs Branch
into the Centre of Excellence.
Confidential
2
Broadband Priorities at OMAFRA
Our Ministry’s broadband funding investments since 2009 include:
•
Over $31M to 53 municipal-led projects through the Rural Connections
Program that leveraged over $68M in funding.
•
$55M for the Eastern Ontario Regional Network (EORN) project that is
leveraging over $115M in additional funding.
•
Over $32M in Building Broadband for Rural and Northern Ontario
(BBRNO) funding for the North-Western Ontario Broadband Expansion
Initiative (NWOBEI).
Our Ministry policy work:
•
Developed a submission for the government’s broadband priorities
through the 10-year Infrastructure Plan;
•
Represented rural concerns in Industry Canada’s most recent
consultation for the upcoming 700 MHz spectrum auction policies.
•
In conjunction with the Ministry of Economic Development and
Innovation (MEDI), is in part funding the Western Ontario Warden’s
Caucus (WOWC) feasibility study for a regional broadband project in
S-W Ontario.
Confidential
3
Challenges in Broadband Investments
Challenges include:
•
Province investing/working within parameters of the Canadian
telecommunications industry regulated by Federal bodies.
•
Rapidly evolving broadband technology that can make investments
redundant within a few years - difficult for government to pick future
technological winners for investments.
•
Lack of a business case in rural and remote areas that requires
government intervention.
•
Unlike other infrastructure investments where “if you build it, they will
come”, broadband investments require infrastructure capacity building
for users/consumers.
Confidential
4
Opportunities for Broadband Investments
Opportunities include:
•
Projects such as the successful Eastern Ontario Regional Network
(EORN) are demonstrating that significant economies of scale can be
achieved through a regional approach.
•
Many Ontarians have access to a broadband technological mix (DSL,
cable or fixed wireless) that provides them with more choice than many
other jurisdictions.
•
Increasing synergies/opportunities for shared broadband infrastructure
investments to optimize broader public service, research and
consumer networks.
•
Broadband investments provide an opportunity for strengthening the
viability of rural and remote areas in Ontario.
Confidential
5