Delivering big city services to rural customers
In 1999, Jaguar Communications went to market with the conviction that residents in rural areas, farm communities, and small towns should have access to the same telecommunications products and services (broadband voice, video, and data) that are available in metropolitan areas. Moreover, founder and CEO Donny Smith had an underlying motive: getting broadband services to the youth living in the rural environment. “That strengthens the area and gives young people motivation to stay,” says Smith. “I had a chance to work with computers and IP technology when I was in high school so when we launched Jaguar, a major driving force was to give young people those same opportunities with the latest in technology.”
To drive its FTTP (fiber to the premises) network expansion into rural locales, Jaguar selected ECI Telecom’s XDM® optical platform for service backhaul and its network backbone. Now, for the first time, many residents of southeastern Minnesota have access to triple-play services, including voice, high-speed data, and advanced broadband video – all from one provider. Smith notes, “ECI’s optical platform allows us to expand our backbone cost effectively to bring broadband services to customers in rural areas that incumbent carriers have largely ignored.”
Jaguar’s efforts are in the tradition of rural electrification in the United States in the 1930s and the extension of telephone services to rural areas. Small phone companies sprang up as the big communications service providers did not want to go to the more remote towns and farms. However, Jaguar is operating on a larger scale, according to Smith: “We are in 5 counties now and are growing to 13 over the coming year…we plan to get even larger. The goal is to get services available to every farm…not just the towns.”
Choosing ECI’s XDM multi-service transport platform – three functions in one offering
To make that vision work, Jaguar needed technology to integrate next-generation SONET (Synchronous Optical Network), Ethernet, and WDM (wavelength division multiplexing) functionality, all on one platform (not three separate platforms). Searching for products that met these needs, Smith first encountered ECI Telecom at a trade show.
“We liked the gear as soon as we saw it,” said Smith. “We talked to the ECI engineers and then worked out the arrangements to bring the product in for testing. ECI has satisfied our specs and even exceeded some. In fact, ECI was the only one that could meet all our requirements – and we looked at a lot of the competitors who offered next-generation SONET and Ethernet multiplexing.”
Resounding governmental support
It was also important that ECI’s optical solutions are included in the List of Acceptable Products for the U.S. Department of Agriculture (USDA) Rural Utilities Service (RUS) program. RUS provides assistance to service providers in building networks in rural locations, and funded part of Jaguar’s rural FTTP deployment, bringing broadband services to areas that previously lacked even basic high-speed connections.
Jaguar’s first RUS funding was for $4.5 million, and the second is proposed for $17 million. “With the latest funding, we can expand from 73 census areas to 153,” Smith said. “Jaguar continues to get RUS backing because we are a proven, viable business and have run in the black for over five years. This proves the wisdom of the government lending us the money; we can pay back the loan.”
XDM: delivering multi-dimensional value – saving time, cost, energy, space – and providing top functionality
When asked what the XDM does for Jaguar, Smith responded, “You mean besides making our network work?” He explained that, while in theory, Jaguar could do almost everything they need to do without the XDM, the critical difference is that the XDM lets them do it all on one platform. That has a huge economic impact, in several dimensions.
Smith says, “The XDM delivers tremendous value. Having all this functionality on one platform is cost efficient, space efficient, time efficient, and energy efficient. With the XDM, we’re not trading off savings in one area and sacrificing performance in another; we get top value in all areas. And it works! The “it works” part is critical!”
With the XDM, value starts with initial capital expenditure, Smith explains, “One box just costs less than three boxes. And our experience is that other stand-alone SONET and Ethernet gear is typically double the cost of the ECI gear.”
ECI technology also saves space and energy. “A medium-sized XDM device is 9U high, about the same as any SONET multiplexer,” continues Smith. “However, we might also need a tagging or VLAN tagging box – and that’s another 16U. An Ethernet switch is 4 or 5U, up to as much as 10U. All that takes up more rack space. With ECI, you have a smaller footprint. It’s one box, not three, and it uses less power.”
Helping Jaguar pull off a triple play – voice, video, and data
The bottom line for Jaguar is the impact that ECI’s XDM technology has on its customers. Says Smith, “We can provide services at a competitive price, from a stable company that is not going to go away. We are offering triple-play services to customers who normally don’t have access to these services (voice, video, and data), and they love it. Our penetration rate was 30 to 32% of homes passed, or the people our network fiber goes by, in just the first two months.”
“The XDM makes it possible for us to deliver these services and do so at a cost that is more than competitive with our competitors. Usually, I have to get involved in projects because things do not always go as planned, but other than the initial purchase negotiations, I have not had to be involved with the XDM because we are not having any problems. The XDM is working flawlessly,” said Smith.
Superb support and commitment from ECI
During the evaluation process, Jaguar’s technology team worked with ECI to “tweak” some features that Jaguar needed. “We got outstanding support from ECI,” said Smith. “They gave us the time needed to resolve any problems and never let things drop.” The Jaguar technology team worked closely with the ECI support center in Ft. Lauderdale, Florida, and the ECI technical staff also made on-site visits in Minnesota.
“We look for companies that give great support,” Smith said. “With ECI, we always get that.”
ECI Telecom’s role in Jaguar Communications’ backbone expansion of its FTTP network demonstrates ECI’s commitment to the growing North American optical transport market. “We are delighted to be part of Jaguar Communications’ broadband network expansion and deliver a cost-effective solution to assist with the delivery of broadband services to this region,” said Dave Robison, ECI Telecom’s General Manager for the Americas and CALA. “This project demonstrates the versatility of our optical solutions to meet the challenges of any type of network expansion.”
Future plans: calling on more XDM
The XDM platform features a Build-As-You-Grow™ architecture that enables Jaguar to utilize SONET and Ethernet capabilities today, and as the network grows and more bandwidth is needed, to expand to an advanced multi-degree, multi-wavelength ROADM (reconfigurable optical add-drop multiplexer) network delivering multiple DWDM (dense wavelength division multiplexing) services on the same platform.
“Historically, we have doubled our customer base every 10 to 14 months,” said Smith. “As we grow, we will add XDM capacity and functionality to handle the increased volume of traffic. The XDM’s scalability and flexibility are a good match for our requirements. Many areas we go into are very small and do not need huge pipes. As these areas grow, with the XDM, we will not need a forklift upgrade to expand network capacity. The XDM, with its in-service upgrade capability and ROADM functionality, is ready to go when we need it; there is a lot of capacity in that box!”
About Jaguar Communications
Founded in 1999, Jaguar Communications (www.jaguarcommunications.com) is based in Owatonna, Minnesota. The company serves rural residents, small towns, and farming communities within southern Minnesota, areas that traditionally have had little or no access to advanced telecommunications services. Jaguar Communications’ mission is to provide the products and services – which metropolitan areas enjoy and take for granted – to its customers.