HomeMy WebLinkAbout9 Broadband Equipment & Design Agenda Item # 19
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Memorandum
To: Board of Directors
From: Alan Harry, Dir. Telecommunications Services
Date: September 26, 2003
Subject: Authorization to request bids for the Broadband Equipment& Design for Fiber
To The User (FTTU) System.
1. WHY THIS MATTER IS BEFORE THE BOARD
Board authorization is required to award a contract for the purchase of Broadband
Equipment & Design for Fiber To The User(FTTU) System.
2. HISTORY
On August 17th the Board authorized staff to let Bids for the purchase of Broadband
Equipment& Design for Fiber To The User(FTTU) System.
3. NEW INFORMATION
On September 19th Bids were received and opened for the equipment and design. Staff and
their consultant, Financial Strategy Group (FSG), have evaluated the Bids received and are
in the process of preparing a matrix, which is being used to score each bidder as to their
meeting each requirement of the Bid. It is expected that this matrix will be complete and
transmitted to the Board late Monday, September 29th.
4. RECOMMENDATION
Staff has not yet completed the process of scoring Bids received, thus a recommendation
will not be provided to the Board until late Monday, September 29`h
The financing of the District's FTTU project is required prior to the formal award of Bids. As
such, it is staffs recommendation that the Board authorize Alan Harry to contact the Bid
winner and advise them that they have won the Bid, and that following the close of project
financing, shall be formally awarded the Bid for Broadband Equipment & Design for Fiber
To The User(FTTU) System.
0 Page 1
Agenda Item # 9
VIP '�RUCKEE. DONNER
DistrictPublic Utility
Memorandum
To: Board of Directors
From: Alan Harry, Dir. Telecommunications Services
Date: September29, 2003
Subject: Authorization to request bids for the Broadband Equipment& Design for Fiber
To The User (FTTU) System. Addendum to 9126103 Staff Report
1. WHY THIS MATTER IS BEFORE THE BOARD
Board authorization is required to award a contract for the purchase of Broadband
Equipment & Design for Fiber To The User(FTTU) System.
2. HISTORY
On August 17"'the Board authorized staff to let Bids for the purchase of Broadband
Equipment& Design for Fiber To The User(FTTU) System.
3. NEW INFORMATION
On September 19t' Bids were received and opened for the equipment and design.
Staff and their consultant, FSG, have evaluated the Bids received and have prepared
the attached matrix summarizing our findings.
As you can see, of the two companies evaluated, Wave7 has scored higher in both
"Technical Requirements"and"total cost of bid".
In addition, the total cost of bid is in line with projections included in the District's
Broadband Business Plan.
4. RECOMMENDATION
In that Wave7 has met the District's technical requirements, and is the lowest bidder,
it is recommended that the Board accept Wave7 as the "Bid winner", and direct staff
to advise Wave7 that the formal "award of the contract"cannot be completed until
project financing is concluded.
0 Page t
Broadband Equipment & Design
for
Fiber To The User (FTTU) System
#of Alcatel Wave 7
PTS Minimum Requirements
mg e nuersownion Tor voice,data,and video. the
ONU/ONT should be a single fiber,triple-play device that
does not have separate non integrated RF video receivers a
and external W DM devices(i.e It should be a truly
R4 integrated single fiber,triple play device) 2 4
1 e 4 IP based optical Ethernet solution 0 4
"I Capable of delivering symmetric bandwidth(at least 566
e Mb/s symmetrical)to the ONUS/ONTs,wdh a guarantee of
u greater than 36 Mars of continuous bandwidth per
C 4 customer. 1 3
h --- .
Sngle FTTX access platform that serves SFUs,MDUs
r and small-to-medium businesses(with integrated Tts)
n 4 from the same OLT. 4 4
e
Ability to remotely provision and activate/deactivate all
m 4 ONU ports on a per customer basis for all services. 4 4
e . ....:: . ... ..� . .
.a Ability to increase the bandwidth to the OLT on as
n 4 customer demands dictate 0 4
True plug-and-pay ONTs/ONUs with auto discovery,pre
and post-provisioning options,and integrated Automatic
S" 4 Gain Control 2 4
28 TOTAL POINTS <3 13 27 27
Total Cost of Bid (Equipment and Design) $ 5,415,464.00 48 $ 5,222,378.00 50
Result Total Overall Points 6r .7
Broadband Equipment & Design
for
Fiber To The User (FTTU) System
#of Alcatel Optical Wave 7
PTS Minimum Re
so
em a
Solutions
single er gna,a eo e
ONUIONT should e fiber.Irof on ay do rice that
tloe add
have separate,o,cestYegated RF video reservers
end external WDM devices p.e_,it should be a wry
R4 Integrated r.,W fiber triple 2 4 4
T e 4 P based optical Ethernet solution 0 4 4
9 � Capable of detvering vmritei al ba dwldth(atle t SOD "' -
e Mb/s symmett cal)to do ONUS!ONTs with a guarantee of
U greater than 30 Mb/s of continuous bandwidth per
(C 4 ceammar. 1 2 3
1 I 1 Single FTTX access platforn that series SNs,MDU ,and
r small-to-mddumbuslnesses(withintegrated T1s)fromthe
in 4 ame OLT. 4 4 4
1
e
Atolby to reportely poison and activate, deactivate all
C
m 4 ONUpolls oaa is, t de bass fora ancons, 4 4 4
a Abtrytonr M b tlwldth to the OLTo a ustomer
n 4 .. demands d t t 0 l 4
tTrue Nug'and play ONTs/ONUS in auto dlscocon",go
and pastprovisioning options.and integrated Automatic
S 4 cam control. 2 0 4
23 Sections Total Points i3 i3 1e t9 27 27
Total Cost of Bid(Equipment and Design) $5,415,464.00 43 $4,638,110.00 50 $5,222,378.00 44
Result 78 Total Overall Points 55 _,� 71
TR U C KE E D O N N E R wave'Ooptics '
PUBLIC UTILITY DISTRICT
3. PROPOSAL REQUIREMENTS
TDPUD is an over builder of existing networks operated by both the existing Incumbent Local '
Exchange Carrier(SBC/Pacific Bell) and Incumbent Cable Television Provider (USA Media).
There is a potential for multiple retail vendors on this network. As such, Vendor should point
out technical issues associated with having multiple vendors, particularly voice and data, '
delivering services on the network. While TDPUD has a close relationship with its customers
and an impeccable reputation for service, it is imperative that TDPUD offer all the services of our
competitors and that the TDPUD system exceed, or at minimum equal, their functionality. To '
that end, answers to this RFP should take care to point out opportunities for TDPUD to offer
superior voice, data, or video services, and should especially point out any real or potential
deficiencies that may arise in a competitive environment, either for residential or commercial
customers, when using the proposed system architecture and equipment.
Wave7 Optics:
Wave7 Optics has provided an extremely detailed response to the 3.0 Proposal Requirements
section of the TDPUD Broadband Equipment & Design —Fiber to the User System. Clearly
delineated in the following response is the ability for TDPUD to offer superior services using the
Last Mile Link, including services from multiple retailers. '
3.1. Company and Solution Information Requirements: ,
3.1.1. Company information: location(s), number of years in business as a broadband
equipment vendor, number of employees with a breakdown by job function, and a '
statement of services offered. Company information should also include
disclosures of any bankruptcy or liens placed against the respondents within the
last five years. Additionally, information should be included on whether the '
company is Cash Flow Positive and, if not, a brief discussion on the adequacy of
existing funding to reach positive cash flow should be included.
Wave7 Optics: '
• Wave7 Optics was founded in September 2000 and we have raised $62.5 million in
private funding from very well established Tier 1 VCs. Our three lead VCs currently
manage close to $8 billion in investments around the world. We can provide at your '
request powerful reference letters to TDPUD explaining why Wave7 Optics is an attractive
investment to these VCs and reinforcing their commitment and monetary reserves to fund
Wave7 Optics through to profitability. Hence, we are a fully funded company and expect '
to be cash flow positive by Q3 2004. We would be pleased to arrange for a private
conference call with representatives from each of these three VCs to personally answer
any and all of your questions.
• As part of our strategy for success, Wave7 Optics has developed a multi-faceted
partnership with Hitachi Kokusai Electric that encompasses OEM marketing, '
manufacturing, and property licensing arrangements.
• Wave7 Optics entered into 2003 with a shippable backlog in the calendar year of
approximately$8.0 million dollars and we have continued to build on this momentum. By ,
the conclusion of calendar year the company will ship over 10,000 customer premise
devices to a variety of customers in various market segments including municipalities and
utilities, major cable TV MSOs, independent telephone companies, overbuilders, and '
Wave7 Optics Response to TDPUD FTTU System '
Proprietary and Confidential
Section 3.0 Page 1 of 106 September 17, 2003
TRUCKEE DONNER wavejophcs
P U B L I C U T I L I T Y D I S T R I C T
developers both domestically and internationally. We have provided a comprehensive list
of Wave7 Optics customer references with production deployments from our list of
' eighteen current customers. We encourage TDPUD staff to call these customer
references to further validate their customer satisfaction and delight with Wave7 Optics
and the Last Mile Link product line.
' The breakdown of employees by job function is shown in W70 Table A.
' W70 Table A. Wave7 Optics Employee Breakdown
Total Full-time Employees and Consultants: 93
' Em Io ee Breakdown
Management 22
Engineering 41
t Sales and Marketing 17
Operations 5
Customer Support 5
Administration 3
' 3.1.2. Biographical information on the principals of the company, including related work
experience.
Wave7 Optics:
Thomas Tighe - CEO and President
t Prior to joining Wave7 Optics, Thomas Tighe spent two years with World Access, Inc., in Senior
Executive Management Positions. Most recently, Tighe was the President of the World Access
Wireless Division, which he successfully sold to Nera Telecommunications. Prior to joining
' World Access, Tighe held several Senior Executive Management Positions at Antec, a
manufacturer of broadband equipment with revenues in excess of$1 B annually. Tighe joined
Antec in July of 1995 as the VP and GM of the Broadband Systems Group. In January of 1996,
Tighe became the President of Optical Networks International (ONI -An Antec Company), and in
March of 1997, Tighe became the Executive Vice President of Antec's Active Electronics
Division. Prior to joining Antec, Tighe held various executive positions over ten years at AT&T
Network Systems, and AT&T Bell Laboratories. Tighe graduated in 1985 with a BSME degree
from Wentworth Institute of Technology in Boston, MA and in 1991 with an MBA degree from the
University of Massachusetts.
James Farmer -Chief Technical Officer
James Farmer has enjoyed a 33-year career of pioneering cable television. Prior to joining
Wave7 Optics, Farmer was the CTO of Antec. Prior to joining Antec, Farmer was a co-founder of
■ ESP, which specialized in engineering consultant services to the telecommunications industry.
tPrior to ESP, Farmer worked at Scientific Atlanta for 25 years. A true icon in the industry, Farmer
was the recipient of the 1996 NCTA Vanguard Award in Technology, he was inducted into the
' SCTE Hall of Fame in 1997, and was inducted into Cable Pioneers in 1998. Farmer holds
approximately 80 patents in the fields of set-top converters, scrambling systems, and video
server systems. Farmer has a large number of publications with NCTA, SCTE, and IEEE.
Farmer co-authored the book, Modern Cable Television: Video, Voice and Data
' Wave7 Optics Response to TDPUD FTTU System
Proprietary and Confidential
Section 3.0 Paae 2 of 106 4 7 �nn�
TRUCKEE DONNER wave9o*s
P U B L I C U T I L I T Y D I S T R I C T
Communications, published in 1999, which won the Cable Center 2000 Cable Book Award.
Currently he is the President of the IEEE Consumer Electronics Society, and on the program
committee for both the NCTA Convention, and SCTE Expo. Farmer graduated in 1967 with a '
BSEE, and in 1968 with an MSEE, both from the University of South Florida.
Emmanuel A. Vella - Chief Marketing Officer '
Emmanuel Vella has over 15 years of experience in the optoelectronics industry serving cable
television and telecommunications customers. Vella held various executive level positions at
Antec, most recently as VP and GM of the Broadband and Optical Transmission Business Unit. '
In this capacity, Vella led the team that introduced Antec's DWDM based 1550 nm transport
system. Under Vella's direction, Antec's Broadband and Optical Business Unit's revenue more
than doubled between 1997 and 1999. Prior to joining Antec, Vella was employed by Harmonic '
Lightwaves, Inc. a then Silicon Valley based venture capital start-up, focused on the
development and commercialization of Nd:YAG 1310 nm transmitters. Vella has published
articles in Multichannel News, CT and CED Magazine. Vella has a Bachelor of Economics (BEc)
degree from Latrobe University in Melbourne, Australia and a Post Graduate Diploma in '
Economics and Accounting (Dip. EC/ACC) from Latrobe University.
Dr, John J. Kenny - Chief Scientist
Dr. Kenny has 33 years of experience in the telecommunications-engineering field. Prior to
joining Wave7 Optics, he was a Principal Engineer at Antec where he was responsible for the
specification and design of a variety of new products including both DWDM 1550 and 1310 nm '
optics. Prior to joining Anted, Dr. Kenny worked at AT&T Bell Laboratories for 29 years where he
specialized in designing high-speed optical transmission systems and analog and digital
microwave radio systems. In his last three years at Bell Labs, Dr. Kenny was the optical expert '
on the system architecture team that created the Optical Path System Requirements Document
for HFC-2000T" , Dr. Kenny co-authored "Terrestrial Digital Microwave Communications"and
has published numerous papers in that field as well as on HFC-related topics. He is a member '
of the NCTA Engineering Committee, SCTE, and IEEE. Dr. Kenny received his BSEE degree
from the University of Rhode Island and MSEE and Ph.D. degrees from the California Institute of
Technology.
Bruce Roe —Vice President of Engineering
With over 23 years of telecommunications experience, Bruce Roe was most recently a member
of the Executive Leadership Team at Norte[ Networks, where he held several senior positions, '
including Vice President and General Manager. He managed Nortel's IP business unit that
developed and supplied core IP Routing software technology (such as OSPF, BGP, QoS, MPLS,
and IP Multicast) to over 200 customers. Previous to that role, Roe served on Nortel's Advanced ,
Technology Board, where he aligned broad strategic objectives with R&D investment for lead
technology programs. Prior to Nortel, Roe was employed by Bell-Northern Research. Roe has
won several awards for Innovation and Excellence from Nortel Networks, and he received an
award from the department of Industry, Science and Technology in Canada for the design of the
first widely deployed public telecommunications speech recognition system. Roe graduated in
1976 with a B.Sc. and in 1978 with an M.Sc. in Computer Science, both from University of
Calgary. He is currently a member of IEEE and has been published in the Proceedings of the ,
National Communications Forum.
Mike Wearsch -Vice President of Worldwide Sales ,
Mr. Wearsch brings to Wave7 Optics over 18 years of telecommunications experience. He was
previously President of Antec's Digital Systems Division, where he managed the overall P&L for ,
Wave7 Optics Response to TDPUD FTTU System '
Proprietary and Confidential
Section 3.0 Page 3 of 106 September 17, 2003
' TRUCKEE DONNER wave2optics
PUBLIC UTILITY DISTRICT
this top-performing division focused on cable telephony, high-speed data, and IP telephony
solutions. He was responsible for growing the revenue from $0 to over $360M in under five
years and secured multi-year, exclusive contracts with both AT&T Broadband and Cox
Communications for over $1B in combined committed purchases. Prior to Antec, Mr. Wearsch
was the Director of Sales at Motorola's Multimedia Group were he was responsible for securing
' major contracts, both domestically and internationally, for Motorola's cable telephony and high-
speed data solutions. Prior to Motorola, Mr. Wearsch spent over 10 years at AT&T Network
Systems and AT&T Bell Laboratories in various technical sales, product management, and
systems engineering positions. His focus was predominantly on leading-edge access solutions
' for providing voice, video, and data solutions to service providers, including FTTH, DSL,
NGDLC, HFC, wireless, and B-ISDN. Mr. Wearsch holds a BSEE from the University of Dayton,
an MSEE from the University of Michigan, and an MBA degree from the University of Colorado.
Patrick Quinn —Vice President of Product Management
Prior to joining Wave7 Optics, Patrick Quinn was the Senior Director of the World Access
Corporate R&D ASIC and DSP Design Center. Quinn directed all signal processing and RF
efforts in the development of a carrier-class CDMA Wireless Local Loop. Prior to World Access,
Quinn joined TCSI in 1995 to manage a 900 MHz CDMA digital cordless phone project. Prior to
' TCSI, Quinn served as the technical lead in the development of multi-rate VSAT and cable
modems at Stanford Telecom. Quinn has four patents ranging from Wireless CDMA ASIC
technology to the protocol and air interface of a wireless local loop system. He has been
published in both IEEE Potentials and DSP & Multimedia Technology. Quinn received his BSEE
at Simon Fraser University in British Columbia, Canada, and his MSEE at the University of
California in Santa Barbara.
' Stephen Thomas —Chief Architect
Stephen Thomas previously served as CTO for TransNexus, a start-up financial company
supporting Internet-based communications services, where he managed intellectual property
and patent portfolios and was responsible for hands-on design and development in all technical
areas. Earlier in his career, Thomas served as CTO with AT&T Tridom, a $100M satellite
communications provider, where he directed the R&D efforts of products and services for data,
' voice, and video networks. Thomas has held leadership positions in communications standards
organizations, such as the Voice over IP Forum and the European Telecommunications
Standards Institute, and he has been actively involved in the Internet Engineering Task Force for
over 15 years. A frequent speaker at conferences and trade shows, Thomas has also authored
several books on TCP/IP technology, including the best-selling "IPng and the TCP/IP Protocols,"
and the "IP Switching and Routing Essentials."
t Hans Hartmann -Vice President of Operations
Hans Hartmann has over 21 years of computer and telecommunications industry experience.
Hartmann spent 15 years at Hewlett Packard in various managerial positions including
' operations, quality engineering, and channel marketing in the personal computer and printer
business units. After leaving Hewlett-Packard, Hartmann was the VP of Operations at JetFax
Inc, ConvergeNet Technologies (acquired by Dell Computer), Force10 Networks and Westwave
' Communications. Hartmann's experience includes developing and managing international
supply chains achieving industry-leading cost and customer service levels, new product
introduction, implementing tier-one ERP systems (Oracle and JD Edwards), designing for
manufacturability, and managing accelerated growth. He holds a BSEE from the New Jersey
Institute of Technology and a Master degree in manufacturing systems from Stanford University.
' Wave7 Optics Response to TDPUD FTTU System
Proprietary and Confidential
Section 3.0 Page 4 of 106 Cantamhar 17 9nn'l
TRUCKEE DONNER wavec3optics '
PUBLIC UTILITY DISTRICT
Paul Whittlesey—Vice President of Product Marketing
Paul Whittlesey has over 23 years of cable television experience. Prior to joining Antec in 1994,
Whittlesey had 17 years of experience in plant construction, operations and engineering at ATC
(Time Warner), and Greater Media Cable. While at Greater Media, Whittlesey was a pioneer in
the deployment of fiber optic transport systems for CATV applications. At Antec, Whittlesey held
various positions ranging from Technical Sales for Optoelectronics to Senior Director of the
Broadband and Optics Business Unit. Paul Whittlesey was instrumental in the definition,
development, and successful roll-out of several key products within Antec's RF and optical
product portfolio. '
3.1.3. Comprehensive list of references of related work, indicating a brief project scope,
date completed and contacts (including whether it is field trial or live deployment).
Wave7 Optics:
Since 2002 Wave7 Optics has secured wins with its Last Mile Link system for FTTH and FTTB
implementations with eighteen customers worldwide. In each of these implementations, Wave7
Optics' role in the project is the FTTx equipment provider and trainer and, as noted, in some
cases an end-to-end turn-key systems integrator as well. All of these projects are ongoing and
have not yet reached the planned finish date due to the large size of the projects. These '
projects are predominantly for the triple play of voice, data, and video as noted. Each customer
is implementing an end-to-end Last Mile Link system including the Last Mile Core and the family
of Last Mile Gateway products. Details are provided in the following Tables A and B.
W70 Table B. Wave7 Optics Deplo ments
1 Hancock ' Indiana Rural 1 Primary ling voice and data 1 3,000 Home Project;new i Initiated in Sept 2002;
Telecom Telephone initially;IP video later residential greenfield 1 48 customers
Company developments m Maxwell,IN 1 connected to date;
( Project on-going with
new home
completions
1 2 Rochester Indiana Rural Primary line voice,data,and RF 3,800 home and business T"customers 03/03;
Telephone Telephone video,Turn-key project for project;Overbuilding their 100+customers
Company Wave7 Optics own copper network and connected;targeting I
Comcast's HFC network in 50 installs per week; i
Rochester, IN project completion in
i 2004-2005 _
3 US SONET Illinois CLEC Primary line voice,data and RF 2,500 homes and businesses 1"customers 06/03;
video initially; 10,000 at completion; around 50 customers
Overbuilding SBC's copper connected; Project
network and Charter's HFC on-going and starting '
network in southern IL in Salem,Illinois
4 ( Taunton MLP Municipal Utility Data and RF video initially; 30,000+customer 1"customers 07/02:
voice later , deployment long-term; , uct0h
customersOverbuilding Verzon's nnected today;copper network and oject on-going for
Comosst's HFC network term residential and
in Taunton,MA - commercial
customers
5 Jackson Energy Municipal Utility Primary line voice,data,and RF ( 32K homes and businesses [Design&Engineering
video ( citywide deployment ; 3003;Construction i
Overbuilding BellSouth's 4Q03; 1"customers j
copper network and Charter's I 1 Q04 '
HFC network in Jackson,TN.
Wave7 Optics Response to TDPUD FTTU System '
Proprietary and Confidential
Section 3.0 Page 5 of 106 September 17,2003
TRUCKEE DONNER j waveco p s
PUBLIC UTILITY DISTRICT
r6 ,Conxxus i Illinois Power Data and d o initially:voice 2,500 homes and businesses 1st customers 07/03;
Utility ( later ini iaily; 10,000 at completion; 24 customers
' i Overbuilding SBC's copper connected:Project j
I network and Charter's HFC on-going
network in central iL
7 1 Doualasville,GA Municipality 1 Voice,data,and video 31 schools Initially 1a`customers 02/03
t ! Schoolsystem !___
8 Chariton Valley Missouri Rurai Primary line voice data,znd RF 4.80G homes and businesses Project initiated in
Telephone Telephone video;Turn key project for being overbuilt in Macon,MO 04/03;38 lines i
I Company Wave7 Optics first 12—18 months with connected;Project
6,400 homes(in three more completion targeted
towns total by 2005 for 2004
9 1 Comcast Largest U.S. Video to residential subscribers, '- Being used for video for 64K Initiated 8/02
; Cable MSO voice and data later for reslden6al homes
business subs
Customer/Project References
1) Rick Velez, General Manager, Taunton Municipal Lighting Plant,
PO Box, 870
' Taunton, MA 02780-0870
508-824-5844
Email: richardvelezC@tmlp.com
2) Kim Kersey, Vice President, Jackson Energy Authority
P.O. Box 68
Jackson, Tennessee 38302-0068
' 731-422-7257
Email: kkersey(d)iaxenergy.com
t 3) Ron Riggle, VP of Operations, Rochester Telephone Company
117 W. Eighth Street
Post Office Box 597
' Rochester, IN 46975
574-223-0200
Email: ron.riggle(a)rtc1.com
t4) Bob Clyne, VP of Corporate Engineering, Cablevision
One Media Crossways
Woodbury, NY 11797-2013
' 516-803-9857
Email: bclyne@cablevision.com
' 5) John Andrews, President, US Sonet
123 East Main Street
Salem, IL 32881
' 618-548-6909
Email: iandrews(c ussonet.net
' 6) Kevin Osterbur, General Manager, lllicom/Connxus
330 West Ottawa
Paxton, IL 60957
' 217-379-2026 ext. 410
' Wave7 Optics Response to TDPUD FTTU System
Proprietary and Confidential
Section 3.0 Page 6 of 106 Santamhar 17 �nn�
TRU C KE E DO N N E R C�1 wave9apliks '
P U B L I C U T I L I T Y D I S T R I C T
Email: kevino ,conxxus.com
7) Rickey Luke, CTO, Knology '
PO Box 510
West Point, Georgia
706-645-8733 '
Email: riuke(a7knology.com
W70 Table C provides a list of current Wave7 Optics field trials and lab trials in the United State '
and Internationally. All are fiber-in-the-Iasi-mile deployments to single-family units, multi-dwelling
units, and small-to-medium businesses.
W70 Table C. Wave7 Optics Trials '
=
III
1 Jacksonville,R. I Florida Muni Utility Voice,data,and video lab trial 400K households passed I Lab trial 12/02
scope
2 Knology SE USA Voice,data,and video field trial Field trial w!employees; I Initiated 8IO2
Overbuilder Have moved to a FTT6 field '
trial in Knoxville,TN
3 Grande SW USA Voice,data,and video lab and field Lab/field trial initially j Started in
Overbudder trials for FTTB and FTTH 08/03 1
4 Cablevision ( Top 5 U.S. Cable Voice,data,and video lab and field Official product approval; Initiated 02/02
� MSO trials for FTTB Moving to hospital&small to
medium field trials
5 I Charter I Top 5 U.S.Cable Voice,data and video lab and field . Corp lab trial completed; Lab teal I '
MSO trials Moved to field trial in 01/03,moved
_ Simpsonville,SC in 07/03 ,` to field trial
6 Optus Second largest i Voice,data and Video field trials as Ultimately will pass over Field trial I
Telco In Australia part of a planned FTTH roll out in 100,000 homes commences '
Southern Australia which will OS/03
ultimately pass over 100,000
_ homes
7 Telestra(Telecom Largest Telco in Voice data and video field trial as 30,000 MDU targeted area Field trial '
Australia) Australia,National I part of deployment to 30,000 commences
PTT i MDUs with a wholly owned 08103
subsidiary in New Zealand.
'
8 Chattanocnga EPB Municipal Utility in i Operating CLEC and ISP Wave7 has completed Lab I Field trial i
Chattanooga,TN marketing to businesses in trial and is moving to field commences
Chattanooga.Upon Completion of trial in 08;03 08/03
W7 field trial Chattanooga will
begin to deploy for FTTB 20,000
businesses and ultimately
overbuild city for FTTH(140K
home
9 Saudi Telco for Saudi ( STC is Saudi Telecom and the Trial in Riyadh on August Lab trial
Telecom/Aramco Telecom Aramco largest Telcom in the Middle East. - 12".STC considering commences
Aramco is the largest deploying FTTH/B networks j 08/12/03
oiVpetrochemcial company and throughout the country as ahead of 100
STC's largest customer part of infrastructure ( home field '
upgrade. trial,
The Wave7 Optics' LML has undergone strenuous lab trial testing with several of the Top 5
Cable MSOs as listed above. The results have been very positive. The LML is a fully qualified
product, having undergone comprehensive testing in Cablevision's lab. Voice quality scores
were the best ever tested at Cablevision. Data and video adhered to the Wave7 Optics
specification. The result of this particular success is a field trial slated for a hospital and '
Wave7 Optics Response to TDPUD FTTU System '
Proprietary and Confidential
Section 3.0 Page 7 of 106 September 17, 2003
TRUCKEE DONNER wave&*s
P U B L I C U T I L I T Y D I S T R I C T
business application. Included is the qualification and approval letter directly from Cablevision
detailing Wave7 Optics test results and approval. Others MSOs are in different stages of field
' trials and all are progressing well. Similar lab trials have been successfully completed in Charter
Communications labs.
Wave7 Optics has signed OEM agreements with two major international partners to complement
a significant list of Agents, VARs, and OEMs that distribute the Last Mile Link worldwide
(Europe, Asia Pac, Latin American countries to name a few). As part of Wave7 Optics' OEM
agreement with Hitachi, Wave7 Optics Last Mile Link equipment has undergone very rigorous
t acceptance test procedure with a Hitachi Kokusai to ensure the LML meets their stringent
corporate-wide quality standards. This included verification of MTBF analysis performed at the
component level. Currently, the Last Mile Link is fully operational in Hitachi's demonstration
' facility in Tokyo, Japan. Teleste, Inc., which is one of the largest HFC equipment vendors in
Europe, has also entered into a private label OEM agreement with Wave7 Optics whereby
Teleste distributes the Wave7 Optics product suite throughout the European Market. Teleste is
' about to enter their first trial with Wave7 Optics equipment with Swedia Networks in Denmark
and is actively pursuing opportunities in France, the Netherlands and the United Kingdom.
' In 2002, Wave7 entered into a private label OEM agreement with Philips Broadband Networks.
Within 3 months, the Wave7 Last Mile Link was methodically tested and qualified by Philips.
Never before had an optical access system successfully passed Phillips' stringent company-
wide quality program in such a short period of time. Additionally, Wave7 trained over 100
technical and sales resources in 3 different regions of the world (North America, Asia Pac, and
Europe). When Philips Broadband Networks was sold to C-Cor in late 1992, Wave7 opted to
discontinue the OEM relationship.
As outlined above, successful qualification of the Last Mile Link with Hitachi, Teleste, and
Philips, all companies with unmatched reputations on product quality industry-wide, exemplifies
' the quality and reliability of the Last Mile Link.
' Wave7 Optics Response to TDPUD FTTU System
Proprietary and Confidential
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