Perks of Partnership

If there's a revolution fomenting around FTTH, its militia is the growing ranks of relatively small, nimble, fiber-network providers willing to accommodate the nuances of developers and their communities.

When it comes to costs and installation schedules, builders and developers are often at the mercy of legacy triple-play service providers. But they're finding willing, flexible partners among FTTH companies that let them customize everything from financing the network to choosing whose services ride the pipe.

"We elected to own everything on the resort, including the conduits and services, delivered to our headend for us to distribute," says Weimer.

Such an arrangement can be difficult and politically charged when dealing with legacy providers. Not so with Zoomy. Although the provider prefers to own and manage its fiber network-- it will even design and install the network at cost for developments with at least 200 single-family units per year for five years--it's also willing to hand over the reigns to project partners.

"There's an opportunity to serve developers that are looking for a turnkey solution, where we own and operate the network with a full suite of services," says Kruse. "But we also enter into contracts as a professional services company." These contracts provide for design, engineering, and project management, as well as any training the developer needs to manage the network.

For Rockfire at the Lake, a new master plan in Topeka, Kan., developer Karl Capps chose Zoomy to install, manage, and service an FTTH network. But he financed it himself, an investment he'll make back through a larger bundle of services and higher homeowners association (HOA) fees.

"We're in control of the system, content, and costs," says Capps. "We're not reliant on copper and cable companies or limited by their technology and services."

At Tradition, owning the fiber will give the HOA a chance to profit from extra services and applications as they're added to the network's ample bandwidth, says Blessey. He also sees potential to extend the fiber to a 20- mile radius around the community, making it a hub serving 70,000 people--nearly twice the expected capacity at Tradition.

"In addition to being cutting edge technology and a marketing tool for Tradition, it has profit potential for the HOA and the community," says Blessey.

Being able to pick and choose the service providers on the FTTH network is another measure of control that developers and builders can look forward to. Next-generation FTTH companies have little interest in actually providing triple-play services. They'd rather contract with existing voice, data, and TV providers. This way, they can negotiate better terms, offering developers, builders, and residents not only a superior bundle of products, but also the potential to swap out underperforming providers.

"Our service contracts are stringent and guaranteed," says Kolflat. "If [providers] don't meet those standards, the HOA can switch to a better one."

Zoomy takes that concept a step further with OASYS, a proprietary, open-access network that lets homeowners select their service providers beyond even those that were negotiated by the network. "It allows competition among providers and options for us and our homeowners," says Capps. It also keeps Rockfire at the Lake in compliance with a recently enacted Kansas law requiring open access to such services.

The competition also lowers the cost of the bundle delivered to each home in the community. "Most homeowners may not understand the performance differences between fiber and legacy networks in a home-sales conversation," says Kiser, "but they understand saving 30 percent on those services."

Another attractive feature of FTTH: after-sale services. In addition to accommodating a developer's production schedule and then opening the pipeline to competitive services, fiber providers have focused on the need to train salespeople and hand-hold residents to realize the benefits of FTTH.

On-site troubleshooting and concierge services are common, as are line protection packages, wireless hubs and hotspots, sales training, and merchandising aids.

"Having a customer service rep on the premises and each unit ready for residents as they move in makes for an easy postclosing transition," says Lee Hodges, vice president for The Related Group, a high-rise multifamily developer in Miami that contracted with Connexion for five buildings.