Gig.U

1. Gig.U Blair Levin Executive Director, Gig.U Presentation to FTTH Council December 5, 2011 The University Community Next Generation Innovation Project Gig.U and FTTH: Changing the Equation

2. Riddle of the Day America Wants to be the Best In Technology. Broadband is the Most Important General Purpose Technology. Fiber is the Best Transmission Technology for Broadband. Why Don’t We Have Fiber Everywhere?

3. Answer C + O > (r)R + EB

4. Answer C + O > (r)R + EB • C – Capital Expenditures • O– Operating Expenditures • r – Risk • R- Incremental Revenues (New Revenues Minus Current Revenues) • EB- Ecosystem Benefits (Benefits that drive increased revenues outside the communities where the new or incremental investments are made.)

5. Solution: Change the Math C + O < (r)R + EB

6. Changing the Equation to Upgrade Our Networks Background on Gig.U The RFI and the Art of the Possible Concrete steps

7. Background for Gig.U

8. Why It Matters: Rebooting the Economy Requires Innovation, for which Broadband Platform is Key The biggest leaps in growth are driven by meta-ideas… Improving the exchange of information improves the conditions for innovation.

9. Where does innovation occur? In the last 2 decades, three revolutions have transformed knowledge exchange:

10. Broadband is our common collaborative platform Broadband Ecosystem Improvements in each element of the ecosystem drive improvements in others in a virtuous cycle.

11. The Diffusion Lag and the Problem of Yesterday’s Logic Diffusion of Innovations Sunk costs: costs of reengineering factories, industries. Organizations adopting Sunk thinking: imagined costs of reimagining prevailing logic. Time after introduction

12. But Time to Act is Now! Winner Mobile telephone Invention Ubiquity Internet Accelerated pace of development means less time to react – so the slow lose out INNOVATION Television Telephone Act now Incremental Value Add Electricity Potentialforcompetitiveadvantage Act later mediumvalue add highvalue add lowvalue add Loser Time

13. The United States is not advancing as fast as others Other countries are investing in Gigabit connectivity . . . “Home Internet May Get Even Faster in South Korea” By Mark McDonald, February 21, 2011 “Cheap, Ultrafast Broadband? Hong Kong Has It” By Randall Stross, March 5, 2011 South Korea already claims the world’s fastest Internet connections — the fastest globally by far — but that is hardly good enough for the government here. By the end of 2012, South Korea intends to connect every home in the country to the Internet at one gigabit per second. That would be a tenfold increase from the already blazing national standard and more than 200 times as fast as the average household setup in the United States. Hong Kong residents can enjoy astoundingly fast broadband at an astoundingly low price. It became available last year, when a scrappy company called Hong Kong Broadband Network introduced a new option for its fiber-to-the-home service: a speed of 1,000 megabits a second--known as a “gig”-- for less than $26 a month. In the United States, we don’t have anything close to that. But we could. And we should. . . . but Gigabit connectivity is not advancing in the United States

14. Background for Gig.U Lead to …

15. University-communities: a strategic market opportunity Advantages of University-communities Demand for Bandwidth = Greatest Positive Impact of Network Access = Greatest Cost of Deployment = Least

16. University-communities: Birthplace of Network Based Innovations

17. Economic clusters require access to abundant strategic inputs for success In 21st Century economy, we can lower barriers to innovation by increasing bandwidth.

18. The University-Community Next Generation Innovation Project • Over the spring and summer of 2011, 37 leading research universities, working in partnership with their local communities, formed Gig.U Our Mission • Accelerate the deployment of world-leading, next generation networks in the United States Our Purpose • Provide an opportunity to lead in the next generation of ultra-high speed network services and applications

19. Gig.U Member Institutions For new test-beds to foster experimentation and innovation, it makes sense to work with communities that have strong traditions of experimentation and innovation Georgia Tech

20. Changing the Math for Upgrading Our Country Background on Gig.U The RFI and the Art of the Possible Concrete steps

21. The RFI—Efforts to Date

22. The RFI---Responses

23. The RFI---Early Lessons

24. The RFI—Path Ahead • Includes: • Local Governments • Universities • Utilities • MDU Owners • Anchor Institutions • R&E Networks

25. Changing the Math for Upgrading Our Country Background on Gig.U The RFI and the Art of the Possible Concrete steps

26. Concrete Steps for Changing the Math

27. Concrete Steps for Changing the Math

28. Concrete Steps for Changing the Math

29. Key: Increase understanding of need to bring bandwidth to where it fuels the most innovation. Positive Impact of Network Access = Greatest Clusters that depend on the ability to capture and send data and collaborate with non-local sources require greater bandwidth than others. Demand for Bandwidth = Greatest Cost of Deployment = Least

30. Concrete Steps for Changing the Math

31. Public Sector can drive demand through rethinking process

32. Concrete Steps for Changing the Math *”Innovation from above tends to be orderly and dumb. Innovation from below tends to be chaotic and smart.” Carlson’s Law, as reported in That Used to be Us by Friedman and Mandelbaum

33. Key to Changing the Math—Asymmetry

34. Core of Asymmetry—Better Use of Existing Assets

35. Conclusion: Let’s Make It So C + O < (r)R + EB

36. Or as noted around the world…… 所美国大学筹备各自建立1Gbps网络社区“GigU” Headline from Chinese Newspaper day after Gig.U launch