Corporate Overview

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Corporate Overview

• Cardinal Technology Inc.

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Cardinal Technology Inc.

• Established in 1993
• Founded by Larry Baumgart
• Business offices
• United States
• 17224 161st Ave. SE, Renton, Washington, 98058
• Canada
• 574 East Broadway, Vancouver, British Columbia,
  V5T 1X5

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Cardinal Technology Inc.

• Consultants
• Trainers
• Engineers

• Integrators
• Installers
• Provisioners

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Cardinal Technology

• Sales, Marketing and Business Development
  Consulting
• Network Design and Engineering Services
• Turn-key rural regional solutions
• Project Management
• Training

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Objectives

• To enable anyone to provide high-speed Internet
  accesseasily and economicallyin underserved
  areas worldwide.
• To establish product and service delivery
  networks with minimal capital investment.

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Broadband

• Overview

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Latin Stem Communi

• Communicatio onis F. communicating, imparting
• Communico are (1) to share out, give a share
  in hence to communicate, impart a matter,
  without object, to take counsel, confer with a
  person. (2) to join, unite. (3) to take a
  share in, participate.
• Communio (1) ire to fortify thoroughly.
• Communio (2) onis f. sharing, mutual
  participation
• Communis e shared, common, universal, public
  loca, public places loci, commonplaces
  of persons, approachable, affable. N. as subst.
  commune, common property, esp. in plur.
  state, commonwealth in commune, for the
  public good, also in general. Adv. Communiter,
  jointly, generally.
• Communitas atis f.community, fellowhsip sense
  of fellowship, affability.

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What is Broadband?

• High Speed
• Megabits Millions of bits per second
• at least in one direction
• Always on
• Continuous connection to the outside world
• Bidirectional
• High speed from the home as well as to the home
• Can see the home from the outside

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What is Broadband Access forRural Remote Areas

• FCC defines Broadband as 200 Kbps at least in one
  direction
• Industry Canada (Broadband Task Force)
• 1.5 Mbit/s two-way for households
• 10 Mbit/s two-way for institutions
• 1 Gbit/s for major institutions such as hospitals

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Bridging the Digital Divide

• Funding
• Applications
• Horizontal applications
• Vertical Application
• Infrastructure
• DSL, Cable, Fiber, Wireless (terrestrial,
  satellite)
• Facilities
• Methodology

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Funding
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Funding Alternatives

• a self-sustaining business case
• government or private subsidization
• or a combination of the aforementioned

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Funding Programs

• Rural Utility Services
• Community Connect Broadband Grant Program
  http//www.usda.gov/rus/telecom/index.htm
• National Telecommunications and Information
  Administration
• Technology Opportunity Program (TOP)
  http//www.ntia.doc.gov/top/index.html
• Universal Service Fund Administrative Company
• E-Rate http//www.sl.universalservice.org/
• Rural Health Care http//www.rhc.universalservice
  .org/
• Olympic Public Safety Communications Alliance
  Network (OPSCAN) Project

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Funding Programs

• Rural Business-Cooperative Service (RBS)
• Rural Business Enterprise Grants (RBEG) Program
  http//www.rurdev.usda.gov/rbs/busp/rbeg.htm

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Funding Programs

• BRAND initiative
• Canadas Infrastructure Program
• Co-operative Development Initiative
  www.agr.gc.ca/policy/coop/information_e.phtmlmnu1
  

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Additional Funding Alternatives

• First Nations SchoolNet Program
• additional 6.4 million over the next year to
  continue providing First Nations schools with
  computers, Internet access, technical support and
  training
• http//www.schoolnet.ca/aboriginal
• Economic Measures Fund
• fund provides 10 million a year for a period of
  three years to conclude economic measures
  agreements with First Nations

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Broadband Applications
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Why Broadband Access?

• Economic development
• Education
• Health
• Preservation of Information assets culture,
  language, genealogy
• Entertainment

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Its About Services

• Consumers want services not boxes
• Technology now allows cost effective new
  services
• VOD, E-mail, Web Browsing, E-Commerce,
  VoIP, Video Phone, Games, High speed data to the
  PC, Advertising

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Technology
Dial-up/ISDN/sDSL
Set Top Box
NIU- CAP- ATM
CATV - Telcos
Information Society
Internet/Intranet/Extranet
Digital Cities
Digital Cash
Smart Cities
eLife
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Applications

• Vertical Applications
• CHUSE
• Community (Municipal)
• Health
• Utility
• Schools
• Enterprise
• Horizontal Applications
• Voice, Video, and Data
• Community Media Centre
• Radio
• Television

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Vertical Applications

• Telemedicine
• Tele-education
• Tele-culture
• E-government
• E-commerce
• Entertainment

• Personal Communications
• Warfare
• Tele-working
• Police Enforcement
• Libraries

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Horizontal Applications

• Video on Demand
• Asset Tracking
• Unified Messaging
• Backup and Recovery
• Security Monitoring
• Automatic Meter Reading
• Energy Conservation
• Interactive TV

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Shared Service Provisioning

• Application Service Provisioning
• Utility Computing
• Outsourcing
• Time-sharing

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Broadband Advantages

• Able to share 3rd party software securely amongst
  regional communities (ASP)
• Eliminates support issues such as hardware
• Reduces costs through VoIP regionally
• Software support easily facilitated

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Broadband

• Future Applications

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Smart Refrigerators
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Home Hospital
Melanoma Monitor
Smart Socks
Source Popular Science 7/00
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Smart Beds
Source Popular Science 7/00
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Remote Heart Surgery
Source Popular Science 7/00
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Broadband Infrastructure

• Overview

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Regional Network Infrastructure

• Three Tiers of Deployment
• Backhaul (Interconnection to outside world)
• POPs (Community Interconnection)
• Last Mile (Residential, Business, Institution
  Connection)
• How? Who?
• Fiber
• Wireless (satellite, terrestrial, FSO)
• Cable
• Copper (DSL, PLC)

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Networking

• Internet Eighth continent
• Intranet Internal Interface
• Extranet External Interface
• LAN Local Area Networking
• MAN Municipal Area Networking
• WAN Wide Area Networking

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Getting To Your Home

• Local loop describes connection from telephone
  office to your home
• Sometimes called POTS (Plain Old Telephone
  Service)
• Legacy infrastructure is copper
• ISDN, DSL
• Other available connections include
• Cable TV
• Wireless cellular, fixed, satellite, FSO
• Fiber
• Electric power PLC

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Network Evolution
From
To

• Analog
• Broadcast
• Long Distance
• Wired
• Narrowband Voice
• Circuit-Switched
• Domestic
• Many Networks

• Digital
• Interactive
• Any Distance
• Wired Plus Wireless
• Broadband Video, Data, and Voice
• Packet-Based (IP)
• Global
• Integrated Network

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Telephone Standards

• Most common standard is the T-series
• European standards start with E
• The T standard doesnt specify the physical media
• Could use satellite, copper, fiber, etc.
• Specifies data rates, multiplexing is common

28 T1s
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Higher Capacity Circuits

• A trunk denotes a high-capacity circuit
• STS Synchronous Transport Signal
• Refers to electrical signals used in the digital
  circuit interface
• OC Optical Carrier
• Refers to optical signals over fiber
• Distinction often lost in the field to STS
• C suffix indicates concatenated
• OC-3 three OC-1 circuits at 51.84 Mbps
• OC-3C one 155.52 Mbps circuit

STS-1
OC-1
51.840 Mbps
810
STS-3
OC-3
155.520 Mbps
2,430
STS-12
OC-12
622.080 Mbps
9,720
STS-24
OC-24
1,244.160 Mbps
19,440
STS-48
OC-48
2,488.320 Mbps
38,880
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Network Monitoring NETWORK OPERATIONS CENTER

• 24x7 Support Staff
• Experienced support
• personnel
• Fully Automated NOC
• Email Support Available

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Access Alternatives
Cable
Wireline
Enhanced Copper
Fiber
FITL FTTH FTTC HFC
xDSL ISDN
Terrestrial Wireless
Satellite
Mobile
MMDS LMDS MVDS WLL
DBS DTH VSAT
Fixed
3G
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Technology Infrastructure

• Alternative Access

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Technology Infrastructure

• Wireless Terrestrial, Satellite, FSO

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Technology Infrastructure

• DSL

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Technology Infrastructure

• Cable

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Technology Infrastructure

• Fiber

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Methodology

• Stakeholders Shareholders

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Business Plan Objectives

• Ubiquitous regional solution
• Open access network
• Physical medium control through media and local
  content
• Self-sustainability
• Collaborative process

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Problems/Opportunities

• External predatory pricing practices
• Bundling voice, video, and data
• Right of ways?
• Utility poles
• Cable franchise agreements for access
• Telco franchise agreements for access
• New technology
• Sanswire
• 3G, 4G
• Supplier viability
• Broadstorm

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Customer Premise Equipment (CPE) Costs

• Must be written off within two to three years
• Must be able to be turned off/on remotely
• Must facilitate VoIP
• Must control throttle bandwidth

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Customer Premise Equipment

• Web TV 250
• Set top box 125
• DSL modems 100
• Cable modems 100
• VoIP Equipment 100

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Community Media Centre

• Building Community Through Media
• Use media to share information regionally
• Emergency measures vehicle
• Audio visual studio
• Radio, television over IP
• cable, copper, fibre, or wireless
• Local programming and content
• Single point of failure avoided
• VOD (Video On Demand)
• Video conference centre
• Network operations centre

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Network Management

• Network medium agnostic fibre, copper, cable,
  wireless
• Application agnostic
• Open Access Network support
• Two tier solution
• VPN
• Security
• Priority for public safety
• Remote management
• Public hotspots tourism
• Asset tracking

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Success Factors

• Government and Private Sector investment
• Stakeholder Buy-in
• Shareholder Buy-in

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Steps to Success

• Obtain project funding
• Develop a technology strategy with commitment to
  political and community needs
• Adopt industry standards and leading market
  technology
• Develop school and education projects
• Provide low cost Internet access
• Provide large scale access to e-mail
• Public access through libraries
• Information Kiosks tourism
• Migrate local community government to web
  technology
• Increase the availability of online transactions

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Goal Attainment

• Private sector job creation
• Lower government costs
• Break down regional disparity
• Facilitate education and youth objectives
• Create a competitive advantage for all regional
  industry segments
• Regional investment and ownership
• A practical solution

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Summary
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Methodology

• Non-profit Cooperative
• Utility Corporation
• Internet Provisioning open access network
• Community Media Centre
• Training

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Community Shareholders

• ISPs
• Cable companies
• ILECs, CLECs
• Aboriginal Corporations
• Private sector corporations willing to contribute
  cash or in kind contributions.

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Benefits

• Co-operative
• Socialistic values
• Visionary
• Stakeholder investment opportunity

• Corporation
• Responsible capitalism
• Attract talent through equity participation
• Shareholder investor opportunity

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Benefits of Aboriginal Control

• Co-operative
• Socialistic values
• Visionary
• Stakeholder investment opportunity
• Additional funding opportunities

• Corporation
• Responsible capitalism
• Attract talent through equity participation
• Shareholder investor opportunity
• No duty or taxation on hardware or software

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Regional Utility Corporation Opportunities

• Enterprise perspective
• Regional emergency measure communication vehicle
• Regional wholesale negotiator
• Lower long distance charges
• Build community relations through media
• Off-net/on-net communications
• Audio visual studio
• Television and radio over the Internet
• Video on Demand
• Web site services
• Eco-tourism digital cameras

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More Regional Utility Corporation Opportunities

• Regional power generation
• Automatic Meter Reading service
• Shared state of art technology hardware and
  applications
• Application Service Provisioning
• Utility Computing
• Time Sharing
• Security Monitoring
• Asset tracking
• Data backup and recovery service
• CLEC or ILEC status

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Funding

• Self sustaining Corporation
• Multiple services Data, Video, and Voice
• Funding
• Combination of the above
• No single source of funding

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Cash in Kind Funding Proposal
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Budget
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Cash Flow
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Return On Investment (ROI)
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Costs and Contributions In Kind
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Marketing Plan

• Market summary
• Product definition
• Competition
• Positioning
• Communication Strategies
• Packaging Fulfillment
• Launch Strategies
• Public Relations

• Advertising
• Other Promotion
• Pricing
• Distribution
• Vertical Markets/Segments
• International
• Success Metrics
• Schedule

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Next Steps

• Prioritize objectives
• Identify community champions to coordinate and
  communicate activities
• Structure work plan with objectives
• Establish working committees
• Finance committee
• Form co-operative
• Form utility corporation
• Set up regular meeting schedule to discuss
  progress towards objectives

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VISION

• Vision without action is merely a dream
• Action without vision just passes time
• Vision with action can change the world