FEDERAL COMMUNICATIONS COMMISSION
Washington, DC20554
In the Matter of)
)
Inquiry Concerning the Deployment of)CC Docket No. 98-146
Advanced Telecommunications)
Capability to All Americans in a Reasonable)
DECLARATION OF WILLIAM SHANK
My name is William Shank.I am the Vice President of Sales and Marketing for Paceon Corporation.Under my direction is Bart Alvarez, Director of Business Development and Marketing.His duties involve analyzing market developments for the local access portion of the telephone networks, developing unique solutions and architectures for the delivery of broadband capability to small business and residential end users, and developing and implementing marketing plans to promote deployment of Paceon solutions for local access.
Paceon is a business group owned by Mitsubishi Electric of Japan.It is located near Atlanta in Duluth, Georgia.It brings electronics expertise of Mitsubishi Electric to the U.S. telecommunications market.Paceon has developed a suite of products to bring fiber-based broadband communications systems to both business and residential users.
Paceon’s technology is built around the passive optical network (“PON”).This architectural approach allows the carrier to share the last mile of optical fiber among multiple customers, thereby reducing costs.PON essentially moves the last mile from a point-to-point connection to a point-to-multipoint connection.The technology is based on an existing ITU standard, ITU 983, as described in Attachment A (ppt file).
Paceon’s PON architecture is highly reliable in that it utilizes a passive optical connection from the central office through a passive optical splitter to every customer.No field electronics are deployed in the system, thus removing points of vulnerability from the system.
Paceon’s PON system is ATM based and is, therefore, capable of handling multiple services including POTs, ISDN, cable TV, video on demand, LAN interconnection, video conferencing, just to name a few.In short, our PON system meets all of the requirements of the present day subscribers.To accommodate all these services, Paceon’s PON system transmits 155 mbps downstream to a splitter, which delivers the bit stream to 32 homes over a fiber connection.In this sense, the 155 mbps is shared using encryption technology to ensure the privacy and security of individual users.The system gives each home 4 mbps in upstream capacity.
The Paceon system has the following principal components.An Optical Line Terminator (“OLT”), which serves the function of switching and multiplexing and is located at or near the central office.The Optical Distribution Network (“ODN”), which consists of the fibers, the splices, the connectors, and the splitters that connect the OLT to the customer’s premise.The Optical Network Terminator (“ONT”),which is the optical network adapter that is located at the customer’s premise.
Based on our understanding of other technology price points, Paceon’s PON can be deployed in new build and total rehab situations for the same cost as a copper-based DSL solution.As shown on Attachment B (ppt file), PON can be delivered for $652 per service versus $737 for the present method of operation (“PMO”).The PMO is a DSL service and these cost calculations are the first installed cost for deployment.
In the standard deployment, carriers would deliver three services, two 64 kbps voice channels and an IP data service.In the case of the PMO, or DSL service, the IP data service would be 1.5 mbps downstream and 750 kbps upstream.With PON, the IP data service would be 155 mbps shared dynamically among 32 homes and 4mbps upstream for each home.
In light of the fact that the standard deployment is for three services, the cost comparison is 2,211 per subsciber for the PMO (DSL) case and 1,956 per subscriber for PON case.These calculations assume a deployment in a neighborhood of 10,000 homes and an 80% take rate for the service.
/s/William
Shank
VP,
Sales and Marketing
Paceon
Corporation