Optical Fiber: How About Fiber to YOUR Desk?

1. Optical Fiber: How About Fiber to YOUR Desk? Presented by:Bob Ballard, RCDDRegistered Communications Distribution DesignerCertified Fiber Optics Installer Sponsored by: P A R A G O N Scientific Corporation

2. AgendaFiber to the Desk: Where Is It Cost -Effective Today? Technology Review Expanded TIA Fiber Optics LAN Section Scope Cabling market review & forecast Comparing fiber installed first costs with copper Costs Analysis Summary Testimonials Summary

3. Fiber Optics Technology Review How is 50 µm different from 62.5 µm? * Same Cladding Diameter * Only core size differs * Numerical Aperture > 0.200 - 50 µm > 0.275 - 62.5 µm . 62.5 µm Core 50 µm

4. TIA Fiber Optics LAN Section • Formed in 1993 as part of TIA’s Fiber Optics Division • Expanded Mission: To create a resource where people can learn about the technical advantages and affordability that optical transmission brings to customer-owned networks • Members Include: 3M, ADC, CommScope, Corning, Fluke Networks, Leviton Voice & Data, OFS, Optek Technology, Ortronics, Panduit, Pearson Technologies, Sumitomo Electric Lightwave, Tyco/AMP Electronics

5. Expanded FocusResult of Target Audience and Member Input? Fiber-based LANs Storage Area Networks (SANS) Data Centers Industrial Applications Building Automation Systems Fiber In Security Systems Fiber In The Home

6. Market TrendsCopper and Fiber Cable Shipment Forecast* * Source: “US Building Fiber And Copper Cabling Systems” FTM Consulting, February 2003 ftm.consulting@gte.net

7. Selecting the Horizontal MediaUTP Copper or Multimode Fiber UTP Copper • Perceived Lowest System Cost • The “easy” Choice • Universal Familiarity • Smooth Ethernet Upgrade Path • More Complex to Install and Test • Susceptible to EMI, RFI & Crosstalk • Limited Cable Pull Strength • 100 Meter Maximum at 1 Gbps • Shorter Useful Life • Not “Future Proof” Multimode Fiber • Higher Bandwidth • Immunity to EMI, RFI & Crosstalk • Greatly Simplified Installation • Greatly Simplified Testing • Enables Centralized Cabling • Superior Cable Pull Strength • Lower Initial Installed Costs w/Centralized Architecture • Lower Life-Cycle Infrastructure Cost • Cost Effective Ethernet Migration • “Future Proof” • Perception of Complexity • Less Installer Familiarity • Electronics Still Priced Higher

8. Fiber - Copper Cable ShipmentsCable Product Value Shipments * Source: “US Building Fiber And Copper Cabling Systems” FTM Consulting, February 2003 ftm.consulting@gte.net

9. So - Why Not More Fiber?Are Costs Really Higher? • Perception: Fiber is still more expensive than copper Reality! Fiber is less expensive in many applications • Erroneous Assumption: Fiber networks should be designed and installed exactly like copper networks Reality! The installation is in fact much different • Erroneous Assumption: Fiber is more difficult to install & test Reality! Fiber is much easier to install and test • Finally: Designing fiber networks based upon its capabilities saves thousands of dollars compared to copper

10. Comparing Fiber - Copper CostsSeveral Comprehensive Studies Tolly Group, August 2000 • Migrating to Fiber-The Case for Centralized LAN Cabling • Still available for download #200505 • http://www.tolly.com/UTS/UTS_home.aspx TIA Fiber Optics LAN Section, November 2001 • First Generation Cost Model • Very Popular Web Site Download TIA Fiber Optics LAN Section, July 2003 • Second Generation Cost Model • New Model Available For Download: www.fols.org • Also Visit Pearson Technologies Web Site: www.ptnowire.com

11. Second Generation Cost ModelSignificant Market Changes • UTP Component Prices Have DECREASED • Fiber Component Prices Have DECREASED • Fiber Transciever Prices Have DECREASED Long wavelength (1300 nm) substantial price decrease Short wavelength (850 nm) have also decreased • Overall Network Costs Have DECREASED UTP / Fiber Network All Fiber Network Centralized Fiber Installed Cost Less Than Cat 6 UTP!

12. Model Assumptions - Installed First Costs Hierarchlcal Star UTP vs. Centralized Fiber • Building Model 8 Story, 48 Ports Per Floor Costs Calculated on “Per Port” Basis Port Utilization • Copper: 70% • Fiber: 90% • Riser Subsystem Fiber Used in Riser Subsystem (Both Models) • Horizontal Subsystem UTP: Cat 5e or Cat 6 UTP Fiber: 62.5 or 50 µm Multimode Fiber

13. Comparing Installed First Costs Additional Assumptions • Labor Rate $60.00 Per Hour • Telecom Room Construction Costs $150.00 Per Square Foot • 5 - Year Power Costs Lighting, Heating & Cooling Note: Does not apply to Centralized Fiber Network Estimated at $450.00 For 5 Years • Cost Models Completely Interactive See Chart at www.fols.org & Input Your Own Numbers

14. Telecommunications Room (TR) Costs Significantly Less Expensive With Fiber Power To Heat And Cool Electronics Is Costly

16. 15% Savings Fiber $101.43 Less Expensive Than Copper

17. 24% Savings Fiber $169.03 Less Expensive Than Copper

19. Electronics Electronics

21. 65% Savings Fiber $443.11 Less Expensive Than Copper

22. ANSI/TIA/EIA - 785 Ratified July 2001

25. 16% Savings Fiber $111.46 Less Expensive Than Copper

27. Fiber Less Than Copper In Every Scenario Examined