Product

ORNet is currently pursuing options for open access to fibre-optic cable and associated equipment to allow extremely high speed (>1 gigabit/second speed) data transfer points in the Okanagan. Affordable regional high speed connectivity creates new opportunities for revitalizing communities. Examples of innovative ideas include attractive connectivity for professionals extending their office to their home in the Okanagan from anywhere in Canada as well as rejuvenating former retail-oriented downtown areas. Communities are recognizing the importance of open access to a fiber infrastructure as essential public infrastructure for stimulating high speed connectivity and economic development, becoming proactive and supporting new enterprises that reduce the digital divide.

Precedents are everywhere. In Canada and around the world, a revolution is taking place in high-speed networking. Lower prices for fibre are beginning a shift from carrier-owned infrastructure (such as telephone companies and cable companies) toward customer, regional or municipally owned fibre using innovative community or public/private cost-sharing arrangements.

 Access to an intra-regional, fibre-optic backbone would connect all of the municipalities from Osoyoos to Vernon, and through last mile installations connect regional districts, school districts, First Nations’ administrations, libraries, post secondary education institutions and health facilities in the Okanagan with:

• A cost-effective information-sharing conduit;
• Increased opportunities for regional decision making;
• A foundation for meeting the current and future needs of the existing research institutions; and
• Access to more advanced telecommunications.

The backbone would provide the foundation for an affordable, scaleable, and secure next-generation regional network.

In many cases, last mile solutions are made available by Cities that lease and/or own a variety of networks, including data, phone, wireless and other systems. With the convergence of networks and the onset of newer technologies, cities are implementing their own fibre networks and converging all existing networks onto that fibre to achieve substantial cost savings. As a result, Cities are able to recoup some of the costs of their own fiber infrastructure by leasing out excess fiber as a utility for last mile access to buildings within the municipality.

Market

Just as municipalities have taken on responsibility for services like road building, water and electricity, many North American communities now regard open access to fibre-optic infrastructure and affordable high speed networks as essential public infrastructure. Like roads, society is using the Internet to deliver goods and services to businesses and residential customers. Affordable high speed networking is allowing home based professionals access to the same high speed connectivity as they might have at the office. Residential neighbourhoods become clean innovative extensions of municipal business districts.

The early adopters, those public organizations that have already expressed an interest in participating in the project, include: City of Penticton, City of Vernon (and potentially Greater Vernon Services Commission), Lake Country, School District #67, Dominion Radio Astrophysical Observatory (DRAO), School District #23, Okanagan Science and Technology Council (OSTEC, Okanagan College, Interior Health Authority, University of British Columbia-Okanagan (UBC-O), and School District #83.

Risk of Potential Competition with incumbant Carriers

Clearly the telephone companies (telcos) and cable companies (cablecos) may perceive the potential for competition from ORNet. They already have a fibre infrastructure in the region that may be able to serve the needs identified by the potential customers. It follows therefore that if each company has to pay and support it's own independent fiber infrastructure, the ultimate cost will be passed on to the consumer. In addition, the carriers can only roll fiber out to select densely populated areas or large businesses. As a result, many studies have demonstrated the economic benefits to consumers for open access to a fiber infrastructure, including the service providers who will now be able to offer more advanced services to more customers.

In the Okanagan the reaction from the competition cannot be pre-determined, yet the private companies with fibre in the Valley have shown an interest in discussing the concept with the consulting team. One or more of these companies with fibre may choose to join with the Partnership on this initiative or they may all choose to not participate. It is clear that competition could exist between private companies and the ORNet initiative in providing broadband infrastructure, however it is being made clear to carriers that the ORNet is NOT intending to compete with and duplicate services currently offered by ISP's.