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Fiber-to-the-home networks give builders and developers a competitive advantage--and providers willing to accomodate them.

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Source: DIGITAL HOME MAGAZINE
Publication date: March 12, 2007

By Rich Binsacca

As Gerald Blessey surveyed the tragic aftermath of Hurricane Katrina in his home state of Mississippi, the developer reflected on the widespread breakdown of basic communications that the storm had caused.

"I began to think about better communications as a necessity, not just as an amenity," says Blessey.

His master plan for Tradition, near Biloxi, was about to get off the boards when Katrina blew through. It suffered an eight-month delay as the Gulf region recovered, but Blessey found a silver lining. He used the time to incorporate the latest generation of communications technology--fiber optics--and position Tradition for the future.

"It needed to go beyond voice, data, and communication," he says, referring to the so-called triple play of basic services. "It's the set of services and offerings beyond those that boosts the value."

Blessey chose fiber-to-the-home (FTTH) networking, which replaces old-school copper wires and co-ax cable with a high-bandwidth, fiberoptic bundle that can carry tripleplay services and more. The plan is to extend those communication pipes to every lot and building on the plat. That's 15,500 residential units of mixed housing, plus all the retail and commercial space within the boundaries of Tradition--and perhaps beyond.

Blessey isn't alone. More developers and builders are learning that fiber communities can be good for business and enablers of the digital home lifestyle. And although building in a fiber community takes planning and partnerships, there are enough projects in the works that builders can start realizing the benefits today.

See The Light

Although Blessey was inspired to add FTTH by a hurricane's wrath, he and other developers and builders are seeing the bigger picture behind the technology. Fiber-optic networks afford them myriad ways to deliver more to their buyers and to stand out from their competition.

"Our primary focus is delivering high-quality services in all areas, and with our fiber network, we achieve that," says Shelby Weimer, vice president of information technology for Tamarack, a new, four-season resort community northeast of Boise, Idaho. "Most people who purchase or stay here are impressed with the bandwidth and services."

Developers and builders that have invested in the technology say FTTH gives them a distinct sales advantage, allows them greater control over service providers and costs, and boosts land and property values.

"It's the best amenity we offer," says George Kiser Jr., managing partner of Kellswater Bridge Development and its mixed-use master plan under way in Kannapolis, N.C. "If you're trying to get into the shoes of a home buyer considering a community with fiber or a legacy network, which way would you go?"

So far, though, such visionaries are in the minority. According to the Portland, Ore.-based FTTH Council, 99 percent of all U.S. residences remain tethered to copper wires and cables. More than a thousand communities, representing about 6 million homes nationwide, are under contract to offer FTTH, although fewer are up and running.

"We're far behind Japan and Korea," says Diane Kruse, CEO of Zoomy Communications in Glenwood Springs, Colo., one of the new generation FTTH infrastructure providers targeting greenfield developments, including Tradition and Tamarack (www.zoomyco.com). Kruse is also chairman of the board for the FTTH Council, which is lobbying Congress and the Federal Communications Commission to enact policies that inspire and enable greater access to the technology. On a domestic scale, she says, "not only do developers and builders see it as a competitive edge, but municipalities are pushing it as an economic development strategy."

Kruse and other FTTH proponents say a variety of factors will drive developers and builders toward the technology. Chief among them are continued proliferation of structured wiring (and, on the horizon, fiber networks) within new homes, insatiable consumer demand for the latest electronics and digital services, burgeoning home-based business and telecommuting trends, and a more competitive housing environment that cries out for valueadded features.

"Builders and developers are deploying FTTH to create smarter homes and communities," says Leif Kolflat, director of corporate marketing for Connexion Technologies in Cary, N.C., another provider focused on greenfield projects, including Kellswater Bridge, Tributary at New Manchester outside Atlanta, and others (www.cnxntech.com). "A revolution is under way."

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