From DSLdigest -
Hot Topic: DSL Access to Multi-Tenant Units
By Dick Larsen
DSLcon in Boston Sept. 18-21 at the World Trade Center will focus in part on a growing industry segment known by acronyms such as BLECs, MTUs and MDUs.
For the record, a BLEC is a building local exchange carrier, providing Internet access to either a MTU (multiple tenant unit) or a MDU (multiple dwelling unit). In short, BLECs make deals with landlords or hotel management, usually on a revenue sharing basis, with the goal of providing hassle-free Internet access.
This new category of CLEC, as it’s been described, has caught the attention of federal legislators who want the FCC to delay its plan to require multi-tenant building owners to allow access to all CLECs wanting to serve tenants.
At issue is whether language in the proposed FCC rulemaking adequately outlines changes that would be necessary to implement the plan, as well as the practical and legal implications of what some call "forced access."
Meanwhile, House Telecommunications Subcommittee Chairman Billy Tauzin told the FCC in an August 17 letter, as reported by Communications Daily, that the issue was "extremely complex, involving several legal and constitutional questions." The letter also advised FCC Chairman William Kennard that it "would be in the best interests of the Commission to await instructions from the U. S. Congress and perhaps delay action until the next Congress so that a complete airing and hearing of the issue can be accomplished.”
How the Business Works
BLECs first secure the rights to the building, invest up-front in an in-building network, and then get to work to sign up subscribers. Typically, their capital costs are higher, but operating costs are lower.
This provisioning of data, voice and video specialized for multi-tenant unit buildings represents a potential “gold mine” to communications companies and building owners, according to research firm Cahners In-Stat Group.
The firm recently released a report predicting this market to grow to $2 billion by 2004 -- up from just $371 million in 2000. While large Internet equipment companies such as Cisco and 3Com are realizing the value offered by this market, Cahners says, Tut Systems was among the first companies to recognize the opportunity.
Tut Systems
Tut Systems has 200,000 lines deployed in apartment complexes, hotels, shopping centers and commercial buildings around the world. Some of their property partners include real estate investment trusts BRE Properties, Post Properties, and Cadillac Fairview, and hotels in chains belonging to Hilton, Hyatt, and Trump Int/. Even Rockefeller Center is "powered" by Tut equipment. Moreover, Tut partners with service providers operating in this market, including British Telecom, Bell Canada, Darwin Networks, ReFlex Communications and Skyway Partners.
Tut's market value has continued to rise under the recommendation of financial analysts, the company points out. Its stock price has tripled since the start of the year, and is maintaining between $80 and $90 a share -- equal to its opening-day IPO high in January 1999. The company is operating in the black.
Edge Connections
Meanwhile, the Atlanta-based Edge Connections delivers broadband capabilities by placing DSL equipment in each multi-tenant office building, transforming that building's existing telephone wiring into a broadband network capable of running at speeds up to six Mbps. The company recently announced services in the Boston area including DSL, voice, video, and data and e-commerce offerings.
The DSL equipment is about the size of a laptop computer, and creates a mini “superhighway” in the building without expensive and intrusive construction, such as re-wiring the riser with optical fiber or Ethernet cable. By leveraging the existing telephone wires, Edge Connections says it can make any building DSL ready in roughly two hours.
Edge Connections Vice President of Marketing Ben Petro: "We are confident that our DSL solution will have the same overwhelming market acceptance we have seen in New York and Atlanta. Until now, small and mid-sized businesses in the Boston market have not had a cost effective broadband alternative.” Edge delivers a communications suite of high-speed Internet service, integrated voice services and e-business applications previously only targeted to Fortune 500 companies. In recent months, Edge has launched successfully in New York and Atlanta, and they expect to continue lighting buildings in new markets at a rapid pace.
RC Networks and TollBridge
San Diego-based RC Networks Inc., a provider of DSL access and products, and Santa Clara, Calif.,-based TollBridge Technologies Inc., a provider of IP-based, voice-over-broadband services, last month announced an agreement covering co-marketing and sales, and product interoperability aimed at the BLEC market.
As part of this agreement, RC Networks joins TollBridge's Voice-of-Broadband Alliance program to promote interoperability and standardization among broadband equipment vendors. RC Networks' RC8000Plus product family will interoperate with TollBridge's Voice over Broadband service to deliver voice and data services over any broadband access network.
Agnes Imregh, vice president of marketing at TollBridge: "Because RC Networks' equipment was designed specifically for in-building DSL deployment, it provides plug-and-play ease of installation and cost advantages. Together, we offer a unique combination that provides a platform for delivering multiple incremental voice and high-speed data services over a single access line."
MTU News
Edge Connections Inc. last month announced quick success in its partnership with Atlanta's Kaufman Realty Group Inc. Since April of this year, Edge Connections has delivered DSL services to tenants in 10 of Kaufman's buildings and is in the process of "lighting" three more. In total, Kaufman's 13 office buildings in the Atlanta area comprise 436,000 square feet, and all 181 tenants will have access to Edge Connections' DSL. So far, 38 businesses are using the services, including high-speed Internet access, voice, video, data and e-business capabilities. "Many of our tenants had been urging us to deploy broadband services," said Craig Kaufman, president of Kaufman Realty Group. "At first, we went with another broadband installer, but they couldn't meet our timetable and couldn't provide quality services at a reasonable price."
Everest Broadband Networks will provide broadband applications for 27 office buildings in the Los Angeles market. The new contracts involve Jamison Properties and Hertz Investment Corp. The properties are located along Wilshire Boulevard and include the Equitable Plaza and the Cal Mart Building. By year's end, Everest anticipates providing services to tenants in more than 200 buildings. Jeffrey Feldman, CEO of Everest Broadband: "By bringing high-speed broadband to these buildings, and the critical business applications it makes possible, Everest's business model offers landlords the ability to attract and retain tenants and maximize the revenue potential of their square footage." Everest offers applications such as IP fax, Web conferencing, collaboration, business-to-business commerce, Web hosting and e-mail. It is also partnering with ASPs in vertical industries for bundling, caching and local broadband delivery of additional applications and services. The company expects to introduce digital broadcast satellite television to its customers before the end of the year. Everest also announced its acquisition of New York City-based Metrocomm Intl. Inc. The acquisition is Everest's first and is in line with its strategy of becoming a leading building service provider.
Allied Riser Communications Corp. last month signed an agreement with BGK Properties that could give ARC access to more than 3,000 new businesses occupying 15 million square-feet of commercial office space, and expand ARC's presence in 51 markets across the United States and Canada. ARC provides broadband Internet data, video and voice services. ARC delivers its services primarily via the ARC LightSpeed Network that provides customers with an "always-on" Internet connection. The agreement announced today expands ARC's presence in such cities as Albuquerque, N.M.; Baltimore, Chicago, Cleveland, Denver, Houston, Miami, Minneapolis, Nashville, Tenn., Pittsburgh, Toronto, and San Antonio, Texas.
Santa Clara, Calif.,-based Atreus Systems Corp. and DSL provider RC Networks Inc. announced a partnership giving service providers the capability to create, deliver and manage Internet-based services such as e-commerce and streaming video for MTU office buildings, hotels, and MDU complexes. With the combined in-building service, providers have a platform from which to launch, manage and customize the entire service delivery cycle for services such as Internet access, e-mail, ASP services, Managed IT, VPNs, VoDSL and Video-over-DSL.
ECI Telecom Ltd. last month announced a memorandum with Last Mile Media Corp. to become its primary DSL equipment vendor. Last Mile Media located in Austin, Texas provides Internet connections to multi-tenant properties. "ECI Telecom is already a principal supplier of xDSL broadband access solutions in Europe and Asia-Pacific," says Pinny Chaviv, ECI Telecom's corporate vice president and general manager of the Access Solutions Business Unit. "This new agreement further enhances our position as an emerging leader of xDSL solutions in the United States." |
