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Scope, Scale and Success

Welcome to FISPALIVE Nashville 2014. Revenue Opportunities in the Changing Telecommunications Environment. Scope, Scale and Success. Kansas Fiber Network Company Overview. 29 Owner-Members Incorporated in 2009 Construction Started in 2010 Phase 1 Fiber Network Completed May 2012

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Scope, Scale and Success

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  1. Welcome to FISPALIVE Nashville 2014 Revenue Opportunities in the Changing Telecommunications Environment Scope, Scale and Success

  2. Kansas Fiber NetworkCompany Overview • 29 Owner-Members • Incorporated in 2009 • Construction Started in 2010 • Phase 1 Fiber Network Completed May 2012 • 100G Upgrade Completed January 2014 • 2650 Route Miles Covering 350 Rural Kansas Communities

  3. Capacity Upgrade Completed • Cisco 100GB Coherent Technology • Layer 2 MPLS TP • Simplification of Provisioning • Lower Cost of Operations and Maintenance

  4. The 100G Cisco ONS 15454 MSTP Multiservice Transport Platform (MSTP) can support 42 100G wavelengths in a single bay, nearly three times the density of competing solutions

  5. E-Line • Virtual Private Lines (EVPL) • Ethernet Private Lines (EPL) • Ethernet Internet Access UNI • E-LAN • Multipoint L2 VPNs • Transparent LAN Service • Multicast networks UNI Point-to-Point EVC UNI Multi-point to Multi-point EVC UNI UNI UNI • E-Tree • Rooted multi-point L2 VPNs • Broadcast networks • Traffic separation • EP-Tree, EVP-Tree • E- Access • Wholesale Access Services • Access EPL • Access EVPL Rooted Multipoint EVC UNI UNI Private Line Service Point-to-Point EVC UNI ENNI MEF Standard Products Carrier Ethernet Access Network UNI Carrier Ethernet Service Provider E-Access

  6. Delivering services to carrier, government, education, health care and wireless industry customers

  7. Voice Services Tandem Switching Dedicated Long Distance

  8. Kansas Fiber NetworkOpportunities for Success • Wireless Backhaul • Shared Video • Shared Switching • Private Line Transport

  9. KFN Wireless Backhaul • MSA Negotiations with “Elmo”, “Grover", "Uncle Sam” and Regional Wireless Providers Began February 2011 • KFN Awarded 130+ “Elmo” Sites February 2012 • First Wireless Backhaul Circuits Installed and Accepted in April 2012 • First 100+ “Grover” Sites Awarded October 2013

  10. Wireless backhaul Providing a DWDM-based network: connecting the four corners of the Sunflower State — from city centers to family farms — ensuring secure, dependable connectivity Our state-of-the-art fiber-optic network — connecting Kansas through reliable, flexible bandwidth performance

  11. Negotiating the MSA • Stringent SLA Requirements • Latency • Packet Loss • Jitter • Significant Penalties for Failure to Meet SLA

  12. Service Level AgreementMetrics Measured • FOC Dates • MTTR • Availability • Latency • Jitter • Cos/QoS • Packet Loss • Circuit Acceptance • Monitoring & Testing • Loopback • Real-Time Reporting

  13. Monitoring & Reporting SoftwareRequired per MSA • Cloud Based • Faster Turn-up and Configuration • Pay as you Grow • Smaller Capital Investment • Server Based • More Control • Fixed Monthly Costs

  14. Network Interface Devices • Required to ensure SLA Metrics Attainment • CyPortal for Performance Monitoring y.1731 • RFC2544/y.1564 capable 10G and 1G Ethernet Test Sets

  15. Network Interface Devices (NIDs) • MetroNODE 10G @ MTSO for Performance Testing and Monitoring. • Metro NID 1G @ Cell Site for Performance Monitoring and Testing.

  16. Test and Turn-Up • Short and Long Physical Path Protection • Latency Waivers/Variance • Testing Methodologies (RFC 2544/y.1564

  17. KFN Shared Video TransportTo reduce the cost of a CATV system, head end systems can be shared by several distribution systems • Integrated Receiver Decoder – IRD - Receives and decodes incoming video and media channels • Off Air Receivers – Receives, selects, and demodulates local broadcast channels • Encoders – Digitizes media (if in analog form), compresses, and formats the data and control signals to be transmitted • Transcoders – Adapts media formats (such as from MPEG-2 to MPEG-4) • Rate Shaper – Adjusts the transmission rates of each channel to better fit the transmission channel data rate. • Channel Modulators – Converts the digital video signals into modulated RF signals. • Channel Processors – Receives channels, processes the media (such as descrambles or decodes), and remodulates the signal to a desired RF channel. • Channel Signal Combiners – Combines multiple RF channels onto a single transmission line keeping the signals from one RF channel from pushing back into a transmitter.

  18. KFN Shared Video Transport • New Revenue Source for Kansas Fiber Network • 2 Consortia Formed in 2012 to Explore Share Resources • First Group of 5 Customers Have Ordered Services • Hub and Spoke Architecture • Provisioned Via Ethernet Private Line

  19. KFN Shared Voice Switching • In Response to FCC Order • Capped Support • Reductions in Customer Switching Expense • Depreciation • Maintenance • Labor

  20. Shared Voice Switching • Utilize Centralized Softswitch and Related Gear • Session Border Controllers • Enhanced Application Servers • Call Feature Servers • Labor Savings • Software Updates • Routing Changes • Maintenance • Centralized Engineering and Technical Staff

  21. Potential Product Set • KFN Hosted Gateway • Higher Initial Cost • Distributed/Redundant Architecture • Enhanced Service Features + Voicemail • Member Owned/Operated Transport Network • Lines/Trunks Terminate on Remote Gateway • DLC Connection • via GR 303 or H.248 • Lowest Initial Cost • Enhanced Service Features + Voicemail • Member Owned/Operated Transport Network • Lines/Trunks Terminate on Local Gateway

  22. KFN N Clearwater KFN Wichita IP CFS B CFS A IP STP Metaview(standby) A-links DS-3s KFN MemberCustomer A KFN MemberCustomer B MG3510 MG3510(with ESA) MG2510(with ESA) Metaview STP STP LocalTrunks / 911 LocalTrunks / 911 LocalTrunks / 911 T1s T1s IP (untrusted) SS7 SS7 PSTN SS7 KFN MemberCustomer C EAS(active / standby) KFN Network GR303 orSIP/H.248 GR303 orSIP/H.248 GR303 orSIP/H.248 SAS N-Series DLC DLC DLC(with ESA) SIP PerimeterSBC • Notes • EAS = Enhanced Application Servier • N-series used for music on hold, conferencing, firebar, mass announcement • SBC = Session Border Controller • CFS = Call Feature Server (e.g. Class 4/5 and hosted PBX features) IP-PBX Hosted PBX

  23. Thank you!Scope, Scale and Success Questions?

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