What is the purpose of the middle mile network?
Middle mile networks connect the edge or access networks to the core of the broadband network. It takes customers who are already connected to local telcos, such as Multiservice Operator (MSO) head-ins, or even Mobile Telephone Switching Offices (MTSOs), and provides that connectivity back to the Point of Presence (POP) or Internet Service Provider (ISP) data center. Middle mile networks are usually regional, sometimes spanning a few counties or even across several states. The value in the middle mile network is the connectivity and aggregation that’s provided to edge networks, which enables growth. A good example of this kind of network is a state government that Fujitsu worked with to develop a private/public partnership that deployed a statewide fiber network. This allowed them to deliver affordable, high-speed connectivity for state residents from ISPs.
Why is the design critical for middle mile networks?
There are many important design considerations when designing a middle mile network. The foremost among those is location, location, location. You have to build a network where you can reach end customers, anchor institutions, and wireless carriers, as well as data centers and POPs. Additionally, the middle mile network needs to be able to grow into areas where future customers are going to be. The technology used to implement these networks is also an important consideration, whether that’s Wavelength Division Multiplexing (WDM), Fixed Wireless Access, xPON, or SD-WAN as a service. Any of these projects have a number of phases they go through, starting with gathering requirements. These requirements are used to build an engineering analysis. From that, a strategy selection of which path to take is made. After the selection is made, a detailed design can be created that enables the implementation plan. Finally, reliability for middle mile networks is a critically important consideration. One of the interesting stories that came out after Hurricane Katrina was that when they went back into the city, New Orleans residents found that a number of the cell sites were actually still operating, but they had lost their connectivity back to the network. This really emphasizes why reliability in middle mile networks is crucial.
How do you operate a middle mile network?
Middle mile network operators have a number of operational considerations: whether they can field these networks themselves or whether they need to have Fujitsu assist with some of these capabilities. These include things like capacity management, uptime management, trouble detection, trouble ticketing, as well as a disaster recovery plan or disaster recovery protocol. Additionally, they have things like Move/Add/Changes (MACs). Finally, operators must consider how to keep up with network growth, long-term performance and health monitoring, as well as utilization.
What are the key opportunities for providers in middle mile networks?
We have all seen the incredible growth in middle mile networks. In fact, we’re seeing 23 to 28% growth per year, year over year. But we’ve also received $65 billion of federal funding injected into broadband infrastructure through the Infrastructure Investment and Jobs Act, especially the BEAD program and the Middle Mile Grant. With recent developments in technology, like Artificial Intelligence (AI), 5G, and cloud services, it’s clear that right now is a prime opportunity to invest in middle mile networks. For middle mile operators, they need to decide whether to own or lease this network. Or they might choose a hybrid combination where they own the core part of the network and lease back-up routes to increase reliability. There’s a variety of services that can be delivered across these networks. For carrier type customers, that can be things like dark fiber, Ethernet, or wavelength services. For wireless carriers, it might be xHaul or co-location services. For enterprise customers, this might include Wi-Fi, IT as a Service, or Network as a Service using SD-WAN technologies. Carriers can also offer private cloud services or professional services, like cybersecurity, professional design, and engineering. Edge data centers can be an important customer for middle mile networks. They’re going to need connectivity for the Internet of Things (IoT) as we see that market continue to grow.
What are the challenges for middle mile operators?
Middle mile operators face challenges in a number of different areas. First, for brownfield operators (companies who have an existing network and need to upgrade, expand, or replace their network), the challenge is in the growth of the core of the network. To facilitate this growth, close partnerships with vendors is required to make sure those vendor roadmaps can help the operator keep up with, and beat, the curve. Another challenge is the pace of activity on these networks. This includes things like circuit adds, NNI upgrades, on-net/off-net agreements, construction, and billing. The overarching trend in telecom is shrinking the distance between data consumption and data processing. This means that middle mile networks have a key part to play, and the key metrics include capacity and latency.
For middle mile operators who are considering deploying greenfield networks (brand new networks), one of the key challenges is finding customers for those networks, whether it’s anchor institutions, wireless carriers, or forming partnerships with ISPs. This emphasizes the need for a strong sales team to form those relationships, so those services can be delivered and in turn, maximize the take rate for the network. Another challenge for building greenfield networks is access to right of ways. Sometimes right of way may not be immediately available or they may be out of capacity, driving the need for alternative paths. Another challenge for greenfield networks can be the state and local guidelines for labor. Unions may be involved or there may be requirements to use local contractors for Outside Plant (OSP) construction. For greenfield networks, the go-to-market model is an important decision and there’s a lot of options available, such as:
- Owning the fiber duct, but leasing the fiber inside of it
- Owning the fiber duct and owning the fiber
- Leasing dark fiber to other customers
- Leasing the duct itself
- Leasing wavelengths on existing service and providing the services to the end users
Depending on the go-to-market model that is chosen, the operational support of those customers is also an important challenge. This can include not only the sales team that we talked about above, but also design, engineering, and construction teams, plus back-office teams to support the other teams.
How can Fujitsu help providers with middle mile networks?
Fujitsu can help middle mile network operators in a variety of ways, depending on the capabilities that operators already have. Some network operators already have both deployments plus operate and maintain capabilities, in which case Fujitsu may only provide the hardware and software. Other operators may have strong operational capabilities, but they may not have the deployment capability or the capacity to build these new middle mile networks. In those cases, Fujitsu can step into that role. We can help design and deploy middle mile networks and then turn them over to the operator for operation and maintenance. Additionally, some customers are not traditional network operators. This might include state and local governments as well as transportation companies or utilities who have an interest in building middle mile networks. Fujitsu can also help in a partial turnkey project. As an example, Fujitsu is currently working on the communications portion of a larger transportation project. We can also help customers in a full turnkey project, which we have done for a statewide public utility building and a small municipal utility who wanted to build a middle mile network.
