WH I T E PA P E R

Fiber to the Farm:

Building a superfast
rural network
AUGUST 2019

Software for
FTTx network
planning & design comsof.com/fiber
 Fiber to the Farm:
Building a superfast rural network

1. Introduction
Broadband internet access has become a basic utility, similar to services like electricity, gasdistribution, roads, and
water. It is essential to everyone. Every day, in urban and rural areas, new solutions are being developed to make
daily life and business easier. Although they vary wildly in their methods, they share a commonality: the need for
flawless, superfast, internet access to process vast, and expanding, amounts of data.

But what is “superfast internet”? We set the bar high: superfast internet is broadband service with one gigabit-
per-second download speeds or more. This is the only futureproof choice, as data traffic will explode in the
coming decade.

2. A focus on rural
Internet service providers (ISPs) have been investing intensively in superfast internet network rollouts mostly in
urban and suburban areas, as the cost per home connected becomes prohibitive at lower population densities.

However, 20 percent of Americans and 28 percent of Europeans live in remote areas. This is roughly 200 million
people, a large portion of which is left with sub-par broadband. The prospect of high investment costs acts as a
deterrent to ISP investment. While these may exist in very remote areas, there are more opportunities in rural areas
than might be expected at first glance.

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A rural area is not easy to define, but could best be described as an area with a population density of less than
1000 inhabitants per square mile. Some highly rural areas could even have densities as low as or lower than 7 per
square mile. Housing patterns are also very diverse, and include:

• Clusters: groups of houses close together.

• Sporadic housing: dwellings scattered randomly, sometimes located alongside a road inwards.
• Sparse housing: homes spread far apart over a wide area.
• Strip or ribbon development: residences and commercial properties line roads extending outwards from
urban centers.

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3. Giving rural areas gigabit access
Rural connection to a high-speed internet network has a major positive impact on the community. Schools can
offer remote education, for example, and governments can better serve the community. Businesses and farms in
particular can benefit from this technology, using upcoming applications such as e-farming, IoT, and AI, to grow.

As discussed, not every ISP is willing to invest in rural deployment. This creates a window of opportunity for those
who do, benefiting as the sole player in this area. This generates a guaranteed and growing revenue stream for
decades.

We all aspire to a comfortable life, and to use the technologies we see to better ourselves - in rural communities
no less than urban. Farmers, businesses and individuals in these locations may soon demand as a basic right
superfast internet.

Why not consider building a realistic business case to deploy superfast internet in a potential interesting rural area?

4. Gigabit-speed technologies

There are several possible rollout strategies of superfast broadband

connections in a rural area. The main resources (re)used today are
copper, coaxial cable, optical fiber, fixed wireless or a combination
of the above.

In every instance we discuss below, optical fiber is deployed at

least to the last concentration point or node upstream from the
customer’s premise. This is a must to improve network performance.

We define superfast internet as speeds of 1Gbps and more. For this

reason technology such as satellite internet is out of scope, as it is
highly dependent on terrain and weather, has very poor latency,
and is quite expensive.

Fiber to the Cabinet

WIKIMEDIA COMMONS
Various FTTx solutions are available,
FTTC or Fiber to the Cabinet allows you to reuse the last part some reuse parts of the local copper
or coax infrastructure.
of an existing copper network up to the customer premise. In
this scenario fiber must be pulled far down the network, up to
the distribution cabinet, almost to the demand site. In order to
drastically boost speeds in the last 70-80 yards, G.fast technology
is needed.

G.fast allows existing copper wire networks to be reused for

high-bandwidth purposes, up to 1Gbps in ideal circumstances.
The technology is similar to VDSL and ADSL variants, but uses a
broader frequency spectrum to increase bandwidth.
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Speed, however, remains a concern. The more recent versions

of G.fast can be used at distances of up to 500 yards, but
performance at these lengths tends to decrease below VDSL
figures, which is insufficient for supporting growing data traffic.

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 In addition, as rural areas have much lower population densities than their (sub)urban counterparts, cabinet costs
are an important variable. In urban areas cabinets can be used to connect hundreds of users, but in rural this
can be as low as ten, or even five, users. Extra cabinet deployment expenses including civil works, equipment,
electricity, and administration, are an additional budgetary strain.

Reliable, high quality, data on copper wire is also indispensable when designing a network where it is to be reused.
These questions need to be asked:

• What is the age and condition of the copper infrastructure?

• How are the cables organized inside the ducts?
• Do you know the exact route the cable is following?
• Are you still getting good speed versus distance curves when testing?

Lastly, there are some benefits to getting rid of copper which should be considered. There is a high fault index due
to storms and lightning on these networks. Copper cables are heavy, removing them reduces strain on poles, and a
copper network needs active equipment in the field, requiring expensive or hard to find local power sources. That
said, there are ways to connect G.fast equipment to the customer’s power lines, however.

FTTC is a valid interim solution to provide customers with gigabit broadband speeds in (sub)urban areas.
However, considering the above, this technology seems less suitable for rural use.

Fiber to the Node

If there is a coaxial cable network available, you may want to

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deploy an FTTN, or Fiber to the Node, network to boost data
transfer speeds. FTTN replaces the coaxial cable up to the last
active component facingthe subscriber with optical fiber. It retains
the pre-existing and most expensive part of the access network to
replace: the last-yard coaxial cables connecting to the customer.

Exchanging coaxial cables for fiber strands means you can reduce
the number of customers attached to each node. Instead of serving
an average 1,500 homes, FTTN network nodes serve between 40
and 200 homes.

When using this architecture DOCSIS technology is needed to

offer gigabit speeds. This is an international telecom standard
When using an FTTN architecture,
allowing for high-bandwidth data transfer over existing coaxial cable
DOCSIS technology is needed to
infrastructure. Its latest version, DOCSIS 3.1, promises speeds similar offer gigabit speeds.
to FTTH.

There are, however, some trade-offs to using FTTN.

The main concern is speed. As mentioned, DOCSIS offers gigabit speeds, but this will be shared by every user
connected to the coaxial cable. If, for example, fifty people use this medium simultaneously, then internet speed
will drop drastically.

Secondly, on a cable network the percentage of non-useful data - headers and other signaling data that are not
used to transport data to the user- is higher than on a fiber optic or copper network, representing around 20% of
the gross traffic.

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The upstream speed on a cable network is also slower when compared to other technologies. This asymmetry is
due to the way in which the coaxial cable spectrum is organized: a great deal of spectrum has been allocated to
download streams (780 MHz), compared to only 60 MHz for upstream traffic. This could be rearranged to increase
upload speeds, but to the detriment of download speeds.

Another concern is the state of the existing coaxial network. We refer to the FTTC section for a list of questions
that need answering before you start building your FTTN business case.

In conclusion, FTTN allows you to make the most out of your existing coaxial infrastructure, so this may
also be a smart intermediate solution to provide the rural customer with gigabit speeds. However, bear in
mind that this technology needs active equipment and still offers limited speeds, as it is a shared medium.

Fiber to the Antenna

FTTA, or Fiber to the Antenna, is also a viable strategy to offer

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superfast internet. Having a fiber or microwave backhaul, this
technology replaces the final physical connection with a wireless
5G network connection.

5G bandwidth promises speeds of 1Gbps or higher, but these

speeds will only be attained when there is a direct, clear, line-
of-sight between the antenna and the device accessing the
signal. Signals are also easily absorbed by rain, humidity, and
other objects. Because of this, the technology requires a dense
network of strategically placed antennas, with larger ones While 5G broadband will be
expensive to maintain, investment
positioned throughout an area, and smaller on buildings, lamp
into it might be lower than
posts, or poles, for example. This depends on population density
expected.
and purpose.

We also need to consider expenses for equipment, installation, electrical usage, and maintenance. It is estimated
that the operational expenditure of 5G broadband could be five times that of fixed.

But there is more to 5G than just placing extra antennas. It has many upsides.

While 5G broadband will be expensive for network operators to maintain, the investment in it might be lower than
expected, due to the elimination of the last mile to the customer premise, the most expensive part of the network
rollout.

Secondly, 5G allows you to send signals at high and low frequencies across a very broad spectrum. When using a
lower frequency, the signal will have a larger range and low latency, although with the caveat of lower speeds. This
ideally suits the use of this technology for purposes like farm management, an application requiring the former
two, with the acceptable trade-off of the latter. A very real example would be connected cows, enabling farmers

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 to monitor every aspect of their cattle, whenever and wherever. Sensors could communicate crop data, including
moisture, fertilization, and nutrition levels, as well as weather patterns, for improved crop management. 5G
technology will empower farmers to achieve better, more efficient, results.

We can conclude that rural areas can greatly benefit from 5G networks. These low-latency networks
provide the necessary bandwidth to exploit technology for the farm of the future. However, a
combination of technological, geographical, and financial restrictions may inhibit rural areas from being
able to take advantage of 5G, at least for the time being.

The fact remains that high frequency, high speed, 5G covers only a limited distance, with low
penetration ability, creating problems for deployment requiring the installation and maintenance of a
dense cell site network.

Fiber to the Home

The last possible solution is Fiber to the Home or FTTH. In

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an FTTH architecture the full connection to the premise is
fiber-based.

Fiber to the Home is the only completely futureproof

solution for superfast internet. It provides the highest
possible internet access speeds downstream as well as up.
The solutions described above - except for 5G - promise
speeds of up to 1Gbps. FTTH on the other hand allows at
minimum 1Gbps, download and upload speeds.

An FTTH network is reliable and durable. Fiber is immune

to electromagnetic interference (EMI), as it transmits
light instead of current. This means its signal will never
be interrupted by random noise or crosstalk, and even in
extreme weather conditions, in remote areas, or undersea,
fiber will withstand damage more easily than copper or
coax cables.

In addition, optical fibers do not have a magnetic field

around them, making it impossible to tap information
from this network. This is a valuable feature, given the
increasing concerns being voiced around privacy.

Lastly, FTTH needs no active equipment in the field. It needs no amplifiers, antennas, or additional technology, to
boost its speeds. This means a fiber optic network has a much lower OPEX than other solutions, an asset for rural
deployment.

The biggest FTTH network trade-off is the initial investment. Particularly in rural areas, the circumstances are not
always ideal and cost per home connected can be perceived as too high.

In this next chapter we will discuss a realistic FTTH network design in a rural area.

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5. A rural FTTH design
Our example area is located in Canada. It is 77 square miles and holds
679 buildings, of which 180 are clustered in a village in the center of
the area.

We generated a summary of the costs of deploying an FTTH network

in the form of a bill of materials (BOM) below. Costs such as trenching,
equipment (cables, cabinets, splitters, ...) and activation were taken
into account.

The BOM provides us with some first insights on the cost per home
passed, and extra activation costs. In this scenario we are using a
GPON architecture with a 1:32 splitting scheme.

Design scenario Cost per home passed (HP) Cost per home activated (HA)

1 First design $9,304 $1,452

There is not a realistic business case for now. However, we can take several steps to crunch down on expenses.

Alternative cable deployment

As civil works are by far the biggest cost driver (69%), we will first look for savings here. If we opt for aerial
deployment1 and install new poles at a cost of $500 per pole, we clamp down on HP costs by 70%.

Design scenario Cost per home passed (HP) Cost per home activated (HA)

1 First design $9,304 $1,452

2 Alternative cable deployment $2,794 $685

1
Note that many alternatives exist: https://www.ftthcouncil.eu/documents/Publications/DandO_White_Paper_2_2014.pdf

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 Alternative design rules
A second measure is to optimize the network architecture. We opted for a GPON network with a 1:32 splitting
scheme, but as this area has a very heterogenous housing pattern it makes sense to consider cascaded splitting.
More specifically, a combination of 1:4 and 1:8 splitters.

An optimized combination of clustering and splitter schemes decreases the HP cost with about $130.

Design scenario Cost per home passed (HP) Cost per home activated (HA)

1 First design $9,304 $1,452

2 Alternative cable deployment $2,794 $685

3 Alternative design rules $2,670 $749

Boost adoption

High adoption rates are indispensable when you want your project to succeed; adoption rates make or break your
business case.

A low adoption rate in a rural area is highly unlikely, as the ISP which deploys first will probably be the only player
in the field. It is realistic to count on an adoption rate of 60, or even 90, percent.

As we take this percentage into account, we can calculate the figure which is the most relevant for your business
case: the total cost per home connected (HC).

This is how it is calculated:

Cost per HC = (total HP costs + additional cost per HA) / (adoption rate * #HP)

This means in this case:

($1,812,930 + $152,571) / (30% x 679) = $9,649

($1,812,930 + $305,143) / (60% x 679) = $5,199

($1,812,930 + $457,714) / (90% x 679) = $3,716

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 Cost per home Cost per home Cost per home
Design scenario
passed (HP) activated (HA) connected (HC)

1 First design $9,304 $1,452

2 Alternative cable deployment $2,794 $685

3 Alternative design rules $2,670 $749

4 Adoption rate (60% - 90%) $5,199 - $3,716

Consider area density

As we mentioned earlier, this area can be divided into two
separate entities. The center containing 180 buildings, and the
remaining 499 dwellings scattered around the area. Dividing these
1
two provides more cost insights and enables you to exclude the
most expensive homes2.

2
The most important takeaway of this exercise is that there is no
such thing as ‘one cost’ for an FTTH network in a rural area: there
are many variables that should all be thoroughly considered.

Next, we will take a closer look at other initiatives you can take to
further strengthen your business case.

6. Collect information and look

for partners
Gather information
A Fiber to the Home network is a new network. However, the
chances are that a municipality may already have some vital
infrastructure in place, publicly or privately owned. This can help
1 Dense 2 Sparse
reduce costs. It would be wise to take stock of every possible
cost distribution cost distribution
infrastructure asset, including poles, ducts, manholes, cabinets, Dense cost distribution Sparse cost distribution

towers, underutilized (dark) fiber. and even rights-of-way across

streets, bridges, railroads.

Here3 you can find a list of tools that provide free GIS information.

Know your customer

One of the biggest benefits of investing in a rural area is that you will probably be the sole player in the field,
resulting in high adoption rates. It is nonetheless crucial to know what the possible adoption rate might be.

Questions that need answering are:

• Who has an internet connection?
• Are they satisfied with the provided service?
• Do they need a faster connection?
• Who is not online and why not?
• What does it take for them to connect?
• What are people willing to pay for your service?

2
Dividing your potential area into several smaller entities might impact your business case as you can choose to postpone deployment in the most
remote areas or exclude some isolated buildings.
3
https://comsof.com/fiber/blog/fantastic-gis-and-where-to-find-them/

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 This information could be obtained by hiring a market research agency, which can guide you through that phase,
execute the survey, and give advice. You could also team up with a local authority which might already have some
insights, or the necessary tools and contacts, to conduct a survey. Otherwise information could be gathered by
yourself, this is called demand aggregation. Tools like Crowdfiber and COS Service Zones can help measure and
evaluate demand data.

Or go a step further: start building your customer base before the network is deployed. The more people sign up
for your services in advance, the stronger your business case will be. This makes you more interesting for investors,
and the local community can actively take part in helping to realize your network.

Build futureproof alliances

Building a new network does not have to be a one-way street. Joining forces with other interested parties may
prove to be a powerful tool in reducing costs, long and short term.

A well-known co-op type is a public-private partnership (PPP). Here local authorities and private companies
collaborate to share costs and revenue. Although this is a common strategy, a successful PPP requires a seamless
understanding on both sides. So, before you embark on a PPP adventure, it is important to find clear common
ground on aspects such as timing, investment, ownership, exploitation, maintenance.

One could also partner with a private company. Utility companies obviously have potential, as they already possess
network deployment knowledge and own (some of the) assets to construct a network. Water and energy providers
are logical choices.

As rural communities are sometimes left behind in the gigabit game, they can be highly motivated in assisting
interested parties in rolling out a network in their area. There are many examples from around the US which prove
the added value of this practice. Farmers use their tractors to dig trenches for example, or help encourage the
community to get behind this project.

Choose the right financing model

Building a rural FTTH network implies a significant investment. That is why it is important to find the right numbers,
designs, and partners. There are a few ways to obtain extra financial support.

1. Public funding

Connect America Fund

The Connect America Fund or the Universal Service High-Cost program is the FCC’s program to expand
access to voice and broadband services for areas where they are unavailable. Through CAF Phase II, the FCC
provides funding to local telephone companies to subsidize the cost of building new network infrastructure or
upgrading existing to provide voice and broadband service in areas where it is lacking.

Community Connect Grants

The USDA’s grant program offers financial assistance to eligible service providers that want to construct,
improve, or expand, broadband networks in rural areas. Rural areas that lack any existing broadband, with
speeds as defined in the most recent funding announcement, are eligible.

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 Farm Bill Broadband Program

The USDA’s Rural Broadband Access Loan and Loan Guarantee Program, or Farm Bill Broadband Program,
furnishes loans and loan guarantees to provide funds for the costs of construction, improvement, or acquisition
of facilities and equipment needed to provide service at broadband level speed in eligible rural areas.

E-Connectivity Pilot Program

The USDA is offering up to $600 million in loans and grants to help build broadband infrastructure in rural
America. Telecommunications companies, rural electric cooperatives and utilities, internet service providers,
and municipalities, may apply.

The USDA also has a tool which identifies the field representative that covers your state. This representative
will help you navigate the USDA’s offerings and determine your eligibility for participation.

2. Private funding

Private equity such as investment banks rightfully see the rural FTTx market as an opportunity to invest. Some
of these organizations have built up an expertise in organizing fiber optic network deployment. They can
provide valuable advice throughout your project. In this directory4, you can find a list of national banks and
federal savings associations interested in investing in services in rural communities.

7. Conclusion

Building a futureproof rural network will always be a challenge. But there are many ways to strengthen your
business case.

Step one is to choose the right technology for every area. Does the area have a dense, well-maintained, and
well-documented, copper or coax network? Then perhaps FTTC or FTTN is the most sensible option. Do
you want this area to have sufficient bandwidth for years to come, but do not face the requirement of a high
frequency connection for every house? Then FTTA might be the right choice. Does the area need to have a
futureproof high-speed internet connection, without a heavy OPEX? Then FTTH is the obvious choice. The
initial investment may be higher, but the significant upsides compared to its alternatives mean it is likely that
adoption rates will be higher, for a better return on investment.

Clamp down on costs as much as possible when the architectural choices have been made. Explore
alternative cable deployments, optimize design rules, maximize adoption. Next to this, the gathering of GIS
and marketing insights is extremely valuable, as is finding the right organizations to team up with. Seeking
government or other grants might be of great help as well.

When all of this is done, you end up the owner of a futureproof network with your company as the sole ISP
in the region with guaranteed and rising revenue for years to come. Bringing fiber to communities that
would otherwise be left behind. Fiber provides rural communities with a renewed lease on life, giving them
the possibility to grow.

4
https://www.occ.gov/topics/community-affairs/resource-directories/cd-bank-and-fi nancial-institution/index-cd-bank-and-fi nancial-institution.html

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8. Sources

1. http://www.darkfibercommunity.com/blog/a-consideration-for-investing-in-rural-america/

2. http://www.govtech.com/network/Rural-Communities-Suffer-the-Most-Without-Access-to-the-Web.html

3. https://money.cnn.com/2017/12/14/news/economy/kentucky-rural-broadband-internet/index.html

4. https://www.ofcom.org.uk/__data/assets/pdf_file/0025/105685/Annex-10-Cartesian-Report.pdf

5. https://www.increasebroadbandspeed.co.uk/2015/what-is-gfast

6. https://www.nal.usda.gov/ric/what-is-rural

7. https://digital-agenda-data.eu/datasets/digital_agenda_scoreboard_key_indicators/indicators

8. https://www.signalbooster.com/blogs/news/what-is-5g-and-how-does-it-work

9. https://5g.co.uk/guides/5g-vs-fibre-broadband/

10. http://www.carritech.com/news/5g-use-cases-sensor-networks-farming-agriculture/

11. https://www.ft.com/content/2db7e742-7204-11e7-93ff-99f383b09ff9

12. https://muninetworks.org/sites/www.muninetworks.org/files/2019-01-Becoming-Broadband-Ready-Toolkit-web.pdf

13. https://www.ntca.org/ruraliscool/stories-of-innovation/illinois-fiber-connect-expands-gigabit-network-and-definition

14. https://motherboard.vice.com/en_us/article/paax9n/rural-america-is-building-its-own-internet-because-no-one-else-will

15. https://www.fcc.gov/general/connect-america-fund-caf

16. https://www.rd.usda.gov/programs-services/community-connect-grants

17. https://www.rd.usda.gov/programs-services/rural-broadband-access-loan-and-loan-guarantee

18. https://www.usda.gov/reconnect

19. https://www.rd.usda.gov/contact-us/telecom-gfr

20. https://starterkit.fiberbroadband.org/page/funding

Comsof Fiber promises:

Up to 90% Up to 10%
reduction in design time deployment cost reduction

Let’s discuss your project.

info@comsof.com
Empower to create +32 9 275 31 00 Ghent, Belgium
comsof.com +1 416 594 9777 Toronto, Canada