The Next Decade of Bandwidth - Part V

Wireless is the bandwidth service that gets most of the press these days, but there are big developments afoot in the wired world as well. We’ll wrap up our look into the next decade of bandwidth with what’s going on with copper and fiber optic services.

It’s no surprise that fiber optic networks are expanding. Some of this expansion is prompted by American Reinvestment and Recovery Act that appropriated $7.2 billion to expand broadband access across the country. Rural areas that have been largely ignored by commercial interests are especially targeted. With funds available for middle-mile fiber runs, competitive carriers are taking advantage of the opportunity to expand their networks.

While fiber is being trenched through the countryside to provide broadband delivery to Wireless Internet Service Providers (WISPs) that serve sparsely populated areas, even more fiber is being routed through metropolitan areas to hookup businesses of all sizes. Government incentives aren’t needed here. Businesses hungry for increased bandwidth either foot the bill for hookups to metropolitan fiber networks or commit to service levels that justify carriers to “light” their buildings for fiber service.

Why the interest in fiber optic connections? It’s not just mobile bandwidth that’s straining at the limits. T1 lines may have been all the bandwidth a small or even medium size business needed to handle email, general web browsing and communication with its website servers hosted elsewhere. Now, 1.5 Mbps seems a bit quaint and inadequate for all the smallest operations. What drives business now is cloud connections, Software as a Service, video conferencing, hosted VoIP and other bandwidth demanding applications.

The transition from 3G to 4G wireless also means that cellular carriers themselves are strained for fast enough backhaul connections. T1 lines works great to connect towers that handled voice calls. When users expect 10 or 15 Mbps of broadband service, fiber optics look like the ideal solution. The cost of construction, once a show stopper, becomes another part of the upgrade investment that’s paid once and offers almost unlimited upgrades for future needs.

Cloud computing is a major attraction for many businesses who find that pay-as-you-go is much easier to justify than requisitions for million dollar data center improvements. No need for racks and racks of servers, the environmentally controlled building to house them, the backup power generators, or the round-the-clock technical staff to keep everything running smoothly. Outsourcing that to a cloud service provider gets rid of those headaches, but adds a new one. How to you connect to the cloud? Low bandwidth, high latency connections will bring your operations to a grinding halt. What you need now is high bandwidth along with low latency, jitter and packet loss as a backbone to your virtual servers on the other side of the country. That means fiber optic lines and probably two of them for redundancy.

Fiber technology hasn’t been static during this expansion. Until recently you had a choice of SONET services from OC3 to OC12 and perhaps OC48. That was it. Now, Ethernet over Fiber is coming on strong as a direct competitor. Carrier Ethernet more closely matches the LAN networks that feed it. It is more scalable to meet changing business needs. Best of all, Ethernet services tend to cost less, often considerably less, than equivalent SONET fiber optic services.

But, wait! The era of copper is far from over. Just when carriers were thinking about decommissioning their twisted pair copper to let it corrode in the ground or be sold for scrap, Bonded T1 and Ethernet over Copper gain favor as business bandwidth options. While a single T1 line may be too constrained for many uses, multiple T1 lines can be bonded into a single larger bandwidth service up to 10 or 12 Mbps. Ethernet over Copper (EoC) technology uses the same twisted pair bundles as bonded T1, but a more advanced modulation scheme. EoC bandwidth is distance sensitive, but can easily deliver 10 or 20 Mbps to most businesses and 30, 50 or even 100 Mbps for short runs. Continuing development incorporating wireless techniques such as MIMO (Multiple Input, Multiple Output) for crosstalk cancelation is pushing the limits of copper into the hundreds of Mbps and even to a fiber-like Gigabit per second bandwidth.

The next decade of bandwidth is likely to be dominated by massive fiber optic build-outs for fixed locations, such as office and industrial parks, along with copper solutions to bridge the gaps where fiber doesn’t yet connect. Wireless is clearly headed for a common 4G LTE nationwide infrastructure. Compatibility will be built into portable and mobile devices, perhaps as prolifically as WiFi is now. There may be some surprises in store, such long range and interconnected WiFi hotspots or whitespace transmitters as wireless competitors, high bandwidth satellites covering rural areas better than spotty fiber and cable construction, and the development of much higher microwave frequencies (60 GHz and above) and even infrared mesh networks as new service options.

I hope you’ve enjoyed this speculative look into what’s likely to happen in the next 10 years or so, as our appetite for higher bandwidth Internet and private network connections demand satisfaction. There are many good options available right now to support your current business needs. You may not even be aware of how much development has been going on in your area to increase service levels and reduce costs. This would be an excellent time to get competitive options and quotes for business bandwidth services.

See what's available now in the way of T-carrier and Ethernet copper, SONET and Ethernet fiber, fixed wireless and Hybrid Fiber Cable (HFC). Get instant bandwidth pricing up to 1 Gbps and fast quotes on other services.



This has been a 5 part series on bandwidth. If you’ve missed any part of it, you can access Part I, Part II, Part III, or Part IV to catch up at any time.

Handle Big Data With Big Bandwidth

We are said to be entering the age of big data. Just what is big data, why is it different than any other type of data, and what are the ramifications of having big data on our networks?

Big data is exactly what it sounds like. It refers to datasets that are so huge that they overwhelm normal database management tools. We’re not talking megabytes or gigabytes here. Those are easily handled by off the shelf tools. Big data is terabytes, petabytes, exabytes and zettabytes. If you don’t know what those are, just know that each named step up in size represents an increase of 1,000 times.

Where is all this big data coming from? It’s not the sort of thing you generate typing on your PC. Big data comes from computer generated simulations, process and financial modeling, research projects and sensor data acquisition and processing. Computer animation and video processing in high definition and beyond can spit out terabytes faster than you know what to do with them.

What is all this big data going to do to your network, especially your WAN network? Check out this video from Level 3 Communications to get a feel for what’s on the way and how you can deal with it...



As you can see, WAN bandwidth is likely to be the big choke point for big data. It’s because we’re used to dealing with relatively small files and modest applications such as video conferencing and VoIP. We're also used to handling incremental growth in bandwidth needs by scaling up bandwidth services we are already using.

Big data is going to change that. Instead of incremental change, we’re talking step changes. Bonding more T1 lines or moving up to a DS3 service isn’t going to do the trick. You’ll need fiber, and likely a fiber optic solution that has a lot of room for growth.

Fortunately, there a lot more fiber options available today than even a short while ago. These include Ethernet over Fiber to 1 Gbps, 10 Gbps and even 40 Gbps. Carrier core networks are now moving to 100 Gbps as quickly as they can. Other options include wavelength services over Dense Wavelength Division Modulation (DWDM) at up to 10 Gbps per wavelength and dark fiber that you can light yourself.

Are you feeling the pinch of too little WAN bandwidth right now, or see it coming in the near future? If so, this is a good time to check out your options from carriers that have the capacity to support your big data network needs. Get competitive fiber optic bandwidth options and prices for whatever capacity your business needs.

Vyvx and Genesis Offer Worldwide Video Transport

If you are involved in video production, distribution, news reporting or TV sportscasting, you have an immediate and ongoing need for video transport services. Satellites have long been used for this purpose, but worldwide fiber optic networks have benefits that include almost unlimited bandwidth, low latency and availability for many popular venues. The merger of Level 3 and Global Crossing has combined their video transport operations into an impressive array of service options.

Level 3’s Emmy Award winning video service is called Vyvx. They offer broadcast fiber services, managed video network services, teleport and satellite services and venue services. Their venue service, called VenueNet, offers dedicated access points at every major league stadium in the US. In addition to accessing the Vyvx fiber optic network, Level 3 provides high quality video encoding, Internet, telephone access and dedicated support for each venue.

The heart of the Vyvx system is a IP MPLS network with extensive reach. What MPLS brings to the table is inherent VPN security, the ability to reroute video connections on the fly if a fault occurs in the network, and rapid set up and tear down of video connections. You can plan ahead to book the service you need or get a connection at the last minute through the Vyvx 24/7 booking center. This is more difficult to do with limited bandwidth satellite services and unheard of with dedicated point to point fiber connections over traditional switched circuit telecom networks.

Within the last year, Level 3 has added uncompressed high definition video transport services between Los Angeles, Washington D.C. and New York City at 1.5 and 3.0 Gigabits per second. This offers video producers and broadcasters the opportunity to deliver live video feeds in their native, pristine form without any compression.

Another Vyvx service is Managed Video Network Service (MVNS). This is a fully managed distribution system that provides both fiber optic connectivity and the necessary equipment. With MVNS, you can distribute video feeds to multiple destinations using a web-based booking system. These feeds can be broadcasts or prerecorded content.

With the acquisition of Global Crossing, Level 3 has picked up Global Crossing’s Genesis Solutions, a formerly competing video transport service. Genesis offers global HD video over IP transmission, portable bandwidth that you can book as you need it, and point to multipoint access that can be set up immediately.

Global Crossing’s converged IP network connects 700 cities in 70 countries worldwide. The Genesis Solutions uses that network to offer specialized managed video services with compressed and uncompressed transmission options. Dedicated bandwidth is available in any increment between 2 Mbps and 270 Mbps. MPEG 2/4 compression equipment is available for encoding, decoding transcoding and compression to deliver the desired bit rate and format needed.

As you can see, there is a lot of compatibility between Level 3’s Vyvx and Global Crossing’s Genesis. The combination of the two networks adds capacity and extends the reach of the combined system to every major broadcast market in the world via fiber optic transmission. There are also eleven satellite teleports for those odd locations where fiber still doesn’t go.

Do you need full time or occasional video transport services for broadcast or program distribution? If so, don’t assume that the cost is prohibitive or that there isn’t the capacity available for the locations you have in mind. Level 3 Vyvx Solutions has both the capability and experience to handle whatever you need and whenever you need it. Check prices and options for video transport services now to confirm that your project will meet schedule and budget.

SONET Rings To Support Ethernet

The hot bandwidth service these days is Carrier Ethernet. Everybody wants it once they see the cost advantage over the WAN connection they have now. The big question is can they get it?

In most cases, the answer is yes for a couple of reasons. First, new competitive carriers are rapidly building out their fiber optic core networks based on IP from the start. These networks are tailor made for Carrier Ethernet services. It’s relatively easy to get a point to point Ethernet connection between two distant business locations and use it to link their respective LANs. The result is one larger bridged LAN that enables all employees to be on essentially the same corporate network.

The other reason that Ethernet WAN services are so readily available is that established SONET fiber optic networks are being pressed into service to deliver Ethernet to the customer. This is known as Ethernet over SONET or EoS. The core of the network is still SONET, but operations at that level are invisible to you. As far as you are concerned, your connection is Ethernet all the way.

There’s no reason that SONET can’t transport Ethernet, ATM or other protocols. It was designed as a transport technology and has been adapted over the years to carry whatever traffic required hauling. The origins of SONET, like T-Carrier, are with the telephone industry. The name is an acronym for Synchronous Optical NETwork. Note the term synchronous. That tells you SONET is set up to be a highly synchronized network. The designed is based on multiplexing thousands of small channels called DS0s that each hold one telephone call. These DS0 building blocks can be combined to create T1 and T3 lines or SONET services such as OC-3, OC-12 and OC-48.

The beauty of synchronization for circuit switched architectures based on time division multiplexing is that everything is orchestrated so tightly and you can easily multiplex and demultiplex channels and higher level services. The device that does this is called an ADM or Add/Drop Multiplexer. An ADM can drop off a T1 line, DS3, OC3 or other service at your door from a much higher speed fiber line that carries traffic for many customers.

How does Ethernet squeeze into those tiny telephone channels? It takes some doing, considering that each DS0 carries exactly 64 Kbps. That’s about the speed of an old dial-up modem. What the industry has done is replace the telephone oriented channels with large concatenated frames and various mapping techniques to more efficiently carry Ethernet packets. SONET networks can now readily carry Ethernet services from standard 10 Mbps Ethernet to 100 Mbps Fast Ethernet, 1000 Mbps Gigabit Ethernet (GigE), and 10 Gigabit Ethernet (10GigE).

A feature of most SONET networks that makes them highly reliable is their twin ring design. Two separate fiber strands are used simultaneously. Each carries the same traffic, but in opposite directions. If a fault occurs in the working ring, the network switches over to the protection ring within 50 mSec. This self-healing property works best when the two rings are widely separated so that a single backhoe cut or equipment fault doesn’t take out both rings at once.

Ethernet over SONET and native IP networks are making Carrier Ethernet services of all speeds readily available for businesses looking to upgrade their bandwidth connections at reasonable costs. How much are we talking? Find out with an instant online Ethernet Fiber quote for 10 Mbps to 1 Gbps service levels. Higher bandwidths and SONET services quotes need some manual effort but will be sent to you promptly.

Fiber Lit Towers Improving Rural Broadband

Anyone situated beyond the city limits knows the frustration of living in a bandwidth-free zone. Consumers and small businesses may be near enough to a cell tower to get 3G wireless and certainly two-way satellite is an option, but with severe download restrictions on both. Business sites and farmsteads can probably get T1 lines at 1.5 Mbps and maybe bonded T1 lines to improve a bit on that. How about high bandwidth wireless? Forget it. Fiber optic Ethernet connections? Are you nuts?

Rural America is truly at a disadvantage compared to the telecommunications resources found in cities and suburbs. The best options are found in the core of large metropolitan business districts. Move downtown in a big city and you’ll find such niceties as Gigabit Ethernet and even 10 Gig E connections. You may even be able to get Ethernet over Copper at 100 to 400 Mbps. Fixed wireless services easily deliver 50 to 100 Mbps bandwidth. If a shared bandwidth solution is OK for what you are doing, it’s hard to beat the Cable MSO prices.

Why the big discrepancy between metropolitan and rural service options? It’s all about infrastructure - the infrastructure that was never installed. Well, that’s in the process of changing right now. Level 3 Communications, one of the premier international telecom carriers, has established a program called EON or Extended On-Net sites. What they are doing is building out 500 additional access points to their fiber optic network. They are mostly in small and rural markets where there are few service options available. This is a wholesale, rather than retail, service intended to give local service providers access to high bandwidth carrier services.

Even with fiber optic gateways in the boonies, you still need a way to get the signals to the businesses and consumers without having to spend a fortune creating the remainder of the needed infrastructure. One technology that makes excellent sense for thinly populated areas is fixed wireless. WiMAX is an example of wide area coverage with significant service speeds. What you need, then, is access to the carrier-class fiber bandwidth plus a tower to transmit that bandwidth wirelessly to users scattered far and wide.

This sounds like a perfect opportunity for a combined effort and such a deal has been made. 52Eighty, a provider of tower infrastructure, has entered into an agreement with Level 3 to create 200 new wireless tower access sites situated near Level 3’s EON gateways. 52Eighty will take care of tower construction. Level 3 will provide transport and services that include private line, Ethernet and wavelength services. EON also offers backhauls that include Internet, VPN and voice services.

If this sounds a lot like what has been called the rural broadband initiative, it’s because that’s exactly what is going on. Level 3 is a key “middle mile” provider in bringing high speed network access to rural areas where local service providers can connect. They were awarded $13.7 million this summer through the American Recovery and Reinvestment Act and matched it with $4.2 million of their own funds to create dozens of middle mile connections in rural California, Florida, Georgia, Kansas, Tennessee and Texas.

Does this mean that relief is coming to disconnected consumers and businesses in Rural America? It’s certainly on the way. In fact, many carriers are expanding their wireline, broadband and fiber bandwidth services to garner new customers. If your ISP or business has been unable to get connectivity in the past, now is a good time to check availability and prices online for fiber optic lines to 1 Gbps, plus T1, ISDN PRI and other bandwidth services. You may be surprised by what has become available recently.

GigE and FastE Bandwidth Services

Bandwidth upgrades are a matter of course these days. Many companies are moving from T1 line speeds at 1.5 Mbps up to 3x3 Mbps or 10x10 Mbps Ethernet. Often there is little or no additional cost involved in doing so. But what if these bandwidth levels are still to low for your needs? Are there any opportunities at the 100 to 1000 Mbps level?

Carrier Ethernet is now the service to pursue at medium and high bandwidth speeds. These service levels have been dominated by DS3 or T3 lines at 45 Mbps and SONET OCx for higher line speeds over fiber optic cable. Ethernet bandwidth has a cost advantage for this need and also provisioning flexibility.

It’s common knowledge that low and mid-band Ethernet services are readily available over twisted pair copper wiring. In other words, the same telco wires that you currently use for analog business phone lines and T1 lines can also be used to transport Ethernet protocol. The service requires specialized equipment at each end and multiple copper pairs. This is Ethernet over Copper. Bandwidth levels vary from 1 Mbps on up 100 Mbps and beyond. A 200 Mbps service is available in some areas and a new 400 Mbps asymmetrical Internet access is being rolled out.

Most companies opt for Ethernet as a last mile connection to the Internet, metro or wide area MPLS network with bandwidth up to 50 Mbps. This is a direct replacement for their existing copper wire T1, bonded T1 or DS3 connections. By moving up the speed range to 100 Mbps to 400 Mbps, Ethernet can directly replace such fiber optic services as OC-3 at 155 Mbps and perhaps OC-12 at 622 Mbps.

All of this is done over up to 8 bonded copper pair at distances that don’t exceed a few thousand feet to a few miles from the telco central office. This is no problem in densely populated business districts, but as you move out into the burbs, small cities and rural areas, service becomes less available. Ethernet over Copper has a definite distance limitation.

Fast Ethernet at 100 Mbps may be available over copper, but Ethernet over Fiber is a better bet. The beauty of fiber is that once you have it installed and your building is “lit”, just about any bandwidth is possible. That includes FastE, of course, at 100 Mbps, GigE or Gigabit Ethernet at 1,000 Mbps and 10 GigE or 10 Gigabit Ethernet at 10,000 Mbps.

Ethernet over Fiber is available from traditional telephone companies, but it is also available from competitive carriers who have built their own IP-core regional and national networks with Ethernet as a standard service. These companies can bring Ethernet right to your building without having to lease any telephone company facilities. This gives them the ability to offer more bandwidth for less money. You may save half or more for equivalent service levels at the higher bandwidths.

A new wrinkle is Ethernet over Fiber offered by Cable MSOs. This fiber was bought and paid for by the Cable Television industry, but has so much extra bandwidth available that these companies are offering access to their fiber optic networks to businesses and other organizations that need anywhere from 10 to 1000 Gbps. That includes Fast Ethernet and Gigabit Ethernet at prices that are up to half the cost of other fiber providers.

The options are many and the prices are very attractive right now. There is lots of bandwidth to go around, which may not be true when the economy takes off again. If you need to speed up your networks, you can lock in some excellent deals. Check prices and availability for GigE and FastE bandwidth services appropriate for your business location.

The Coming Level 3 Global Crossing Juggernaut

If you believe that the future of business is high bandwidth connections to clouds, customers and suppliers worldwide, then the next step toward this future is the melding of Level 3 Communications and Global Crossing. Combine their assets and you have a network map that spans the world.

Level 3 Communications is actually purchasing Global Crossing for $2 billion. When this merger is complete, their combined fiber optic assets will reach 70 countries on 3 continents.

Level 3 has an extensive long haul network with metro fiber in many US cities. Their transatlantic undersea fiber connects to a European network to link the USA and major European cities with low latency fiber connections. Level 3 is a major player in the high speed financial trading space, as well as providing other high bandwidth fiber services for global business needs.

Another strength of Level 3 is video transport. Their Vyvx service carries both high definition and standard video programming for studios and networks. For the highest in transmission feed quality, Level 3 Vyvx offers uncompressed high definition video transport services between Los Angeles, Washington D.C. and New York City at 1.5 and 3.0 Gbps. The Level 3 Content Delivery Network (CDN) has 35 strategically placed cashing locations to keep the content as near the customer as possible.

What Global Crossing does is complement rather than compete with Level 3’s US/Europe network. Global Crossing has over 100,000 route miles of fiber optic cable installed around the world. This includes US and Europe network fiber that overlaps Level 3 to some extent. But it also brings trans-pacific undersea fiber and connections to Japan, China, India, Australia, New Zealand, South Korea, Malaysia, Thailand and the Philippines. Connected to its North America network is an extensive fiber optic networking serving the major cities in South America.

Global Crossing is true to its name. Their fiber really does span the world. Add Global Crossing’s network to the Level 3 network and you have extensive connectivity throughout North America, South America, Europe, Australia and Asia, with some facilities extending to the Middle East and Africa.

What does this mean for you, the business user? It certainly means more availability of converged IP network services worldwide and specialty services, such as low latency routes and video transport. Both Level 3 and Global Crossing have been serving major enterprise customers and carriers. They’ve got the expertise and facilities to accomplish whatever you will ever need in the way of connectivity.

Level 3, especially, also caters to smaller and medium businesses in the US. Their T1, bonded T1 and Ethernet over Copper solutions offer dedicated bandwidth at very reasonable prices. For companies that need to link multiple locations, Level 3 MPLS can create a company network that spans the country and extends to include offices, factories and warehouses worldwide.

Fiber optic networks are enjoying a new renaissance, as businesses move to cloud processes and automation that increases employee productivity. You see more fiber going into the ground in both major cities and rural areas. If you’ve been affiliated with Level 3 or Global Crossing, your connection capabilities are about to be increased significantly.

If you are looking to increase your connection speeds, you’ll probably be pleasantly surprised by the wide range of services available and the cost reductions that have come about in recent years from these and other competitive carriers. Don’t assume that you can’t get or afford higher bandwidth, even fiber, until you get prices and availability for business bandwidth services appropriate to your facility locations.



Note: Image of Earth from over the Atlantic Ocean courtesy of the U.S. Government on Wikimedia Commons

Even Lower Latency Connections To Chicago

If you’ve been wondering just how important network latency has become, note that AboveNet is installing shorter fiber optic routes just to link Chicago and its suburbs. That network will be in operation by mid-next year. Can other cities be far behind?

Latency is the new bandwidth. It’s the scarce resource when you need really, really high performance in your computing environment. Who needs such performance? The big driver has been financial companies that trade on the stock and commodity exchanges. That’s why Chicago, as a major financial center, is being targeted for the AboveNet buildout. New York is another hotbed of activity, with colocation near financial exchanges in high demand. Since we are in a global trading economy, low latency connections to Europe and Asia are also enjoying enormous growth.

Why the need for speed, and why doesn’t more bandwidth solve this problem? Latency and bandwidth are two different animals. Latency is how long it takes a packet to get from point A to point B if there is no interference from other traffic. Bandwidth is the sheer volume of traffic you can handle before packets start piling up at the choke points.

To someone with a too-small WAN network, it might seem that latency and bandwidth are the same thing. That’s because a bandwidth-limited system slows down transmission a lot more than the effect of latency. But once you have enough bandwidth to keep up with the amount of traffic you can actually send and receive, then the network is going as fast as it can. Increasing bandwidth won’t make those packets fly down the line any faster. They’re inherently limited by the speed of light and electrical delays within the circuitry.

You get a dramatic feel for the effect of latency when you watch those television interviews from locations thousands of miles away. They connect to the studio using microwave trucks that beam the signal to a geostationary satellite 22,236 miles above the equator. The signal goes from the truck 22,236 miles up to the satellite and then comes back down 22,236 miles to the television studio. That’s a quarter of a second delay one way or about half a second for a conversation at a minimum. You find it either comical or annoying to listen to the reporters at both locations tripping on each other.

How do you reduce that latency? Take as much equipment out of the path as possible and make the path as straight a line connection as possible. Not much you can do with a geosynchronous satellite. They only work at that altitude. Just don’t try to use one for VoIP telephony or any sort of interactive process or you’ll get frustrated quickly. Fiber optic cables are the high bandwidth connection of choice, but even they are not created equal. Some networks, like the Internet, may take a circuitous route to get packets from one location to another. The Internet was designed to get the packets delivered even under multiple fault conditions. It wasn’t designed to get them delivered particularly fast.

What’s better? Privately run fiber optic networks, like national and international MPLS networks, do a decent job. Even these are designed for normal business requirements and aren’t optimized for minimal latency. What you need are networks specifically designed to minimize latency. They feature very straight runs from location to location, very few switches or routers on the path, and termination as close to the users as possible.

High frequency trading has highlighted the need for low latency networks, but as business moves more and more into the cloud, other processes will drive their own needs for this level of performance. Disk mirroring and data replication are two applications that already benefit from lower latency connections. Cloud computing over multiple locations could easily have the same requirement.

Are your business processes latency sensitive? If so, you should seriously consider the newer low latency network services offered by AboveNet and other competitive carriers. There are microseconds, even milliseconds to be saved.

What Is Lowering Gigabit Ethernet Bandwidth Pricing?

If you have recently gone out for quotes on Gigabit Ethernet bandwidth, you may have been surprised by how much prices have dropped the last few years. That’s one pleasant surprise for organizations that need higher levels of business bandwidth for cloud computing access, e-commerce, medical image transmission, video distribution and the like. But is this for real and what is driving these prices lower?

Yes, it’s for real alright. In fact, bandwidth services across the board can be had for a fraction of what you may have paid when you signed your last service contract. That applies to everything from T1 lines to DS3 connections and on up through OCx SONET/SDH fiber optic bandwidth. It also includes competing services like Ethernet, Fast Ethernet, Gigabit Ethernet and 10 Gig E. Plus multi-location cloud networks like MPLS. They’ve all dropped in price. But the cost per Mbps is often most dramatic for Ethernet services.

What’s behind the lowered prices? Two factors can be credited. First is the move from traditional switched circuit transport technologies to packet switched IP networks and services. Second is new levels of competition.

Both legacy service providers, the telephone companies, and new competitive carriers have built-out extensive networks based on IP or a networking technology that embraces IP, such as MPLS or Multi-Protocol Label Switching. You can thank the Internet for that. The enormous volume of equipment and services to support near-universal demand access to the Internet has decreased the price of Ethernet and IP networking to a fraction of what it costs for competing technologies. The entire world is going to packet switched networks based on Internet Protocol.

When every LAN is running Ethernet, it just makes sense that the most efficient way to connect all those local area networks is with an Ethernet connection. Ethernet over Copper lets you do this from typically 3 Mbps on up to around 50 Mbps. Ethernet over Fiber is good for 100 Mbps Fast Ethernet, Gigabit Ethernet, and even 10 Gigabit Ethernet. Gigabit Ethernet is becoming a requirement for medium and large companies depending heavily on high productivity enterprise software or distributing media content, such as video. At the very highest levels, even 10 GigE is no longer out of the question.

The move from legacy telco technologies to IP based fiber optic networks has brought new players into the marketplace for WAN networking services. These competitive carriers have built their own regional or national fiber optic networks and established colocation facilities and points of presence in most major cities, even some mid-size cities. They can often bring their own fiber into business locations and bypass the telephone companies completely. Now instead of one option for service, you may have several or more even at the Gigabit Ethernet level. That spells competition and competition leads to lowered prices.

Could your organization benefit from the recent cost reductions in high bandwidth networks services? Don’t shake your head no until you check current prices and availability for Gigabit Ethernet bandwidth services and other bandwidth offerings. At the very least, your next service lease could cost you less than the one you have now.

Fiber Plus Copper Equals High Bandwidth

We’re bandwidth hungry and getting more so by the day. Both businesses and consumers are finding themselves frustrated by their inability to take advantage of all the latest technologies due to bandwidth limited connections. Productivity vendors and content providers are in the same fix. They’re having a hard time delivering everything they can produce simply because the demand for transport and last mile bandwidth has exceeded the supply.

This situation is reminiscent of the early days of the personal computer. For several decades you just couldn’t get enough processor speed, RAM memory or hard disk capacity. Cheap RAM, huge disks and multi-core processors have pretty much eliminated this bottleneck. Well, not completely. You still find yourself having to upgrade your machines every few years to keep up with the demands of applications, especially video. But today’s limitations on progress are more related to the size of the pipe than the size of the machine.

Seems like the solution is pretty obvious. All we need to do is replace our outmoded copper infrastructure with fiber optic bundles and we’ll have all the bandwidth we can use.

In a sense, that’s what’s happening. Nearly all carriers have embraced fiber optic IP networks and are expanding their fiber footprints as fast as they can. But to think that we’re going to completely retrofit a century and a half’s worth of copper build-out with fiber optics on a one to one basis is just fanciful. Even today there’s no standard that mandates fiber optic service for new homes and businesses as a utility. You can bet that every building gets universal phone service delivered over twisted pair copper. But how many have a multi-fiber bundle terminated on the premises?

Someday fiber optics will be the default for voice, data and video. Copper will be for power. But today’s reality is that most bandwidth will be delivered to homes and businesses over standard copper telco wiring. Fortunately, technology has come to the rescue with new modulation techniques to squeeze higher and higher bandwidths from already installed copper wiring.

For businesses, the hottest bandwidth service right now is called Ethernet over Copper. It is becoming the upgrade of choice by companies who have tapped out the capacity of their T1 lines but can’t afford the construction costs to bring in fiber connections. The new terminal equipment combines the capacity of multiple copper pair to create a single wide bandwidth Ethernet service from carrier to user. The bandwidth is anywhere from 1 to 50 Mbps over a distance of a few blocks to a few miles.

That’s a considerable increase for many small businesses, although medium and larger companies still need to pony up for fiber to get the 100 Mbps to Gigabit Ethernet connections they need. But what about the consumer and companies that have a crying need for higher bandwidth but don’t have the budgets yet for fiber?

AT&T is pursuing a solution for residential users called FTTN or Fiber To The Node. This is a hybrid arrangement that uses the high bandwidth of fiber to get close to a neighborhood and then leverages the value of the already-installed telephone wiring to carry the signals into the home. It’s a way to jack up the speed of DSL way beyond what copper can carry all the way from the central office. How fast? AT&T is reportedly going to start trial service at 80 Mbps next year. That’s faster than the speedy 50 Mbps broadband service offered by Cable’s upgrade to DOCSIS 3.0 modems and even Verizon’s FiOS. Of course, both fiber and Cable have room to increase their speeds as competition demands. But perhaps AT&T can also push the envelope to 100 Mbps and beyond.

FTTN advances can benefit business, too. In metropolitan and suburban areas, carriers establish POPs or Points of Presence where they can connect to their fiber networks. From there they can “light” buildings with fiber service or provide EoC or Ethernet over Copper. The more fiber services there are in a particular area, the more options you have for both fiber and copper bandwidth at reasonable prices with minimal or no construction costs. Knowing where the high bandwidth services are already installed can also be a strategic advantage. If you are looking to relocate anyway, it just makes sense to find a location that already has the network services you’ll be needing. Use the Lit Building Finder to see what fiber optic bandwidth services are nearby.