Scope, Scale and SuccessRevenue Opportunities in the Changing

Telecommunications Environment

Welcome to FISPALIVENashville 2014

Kansas Fiber NetworkCompany Overview

29 Owner-Members Incorporated in 2009 Construction Started in 2010 Phase 1 Fiber Network Completed May 2012 100G Upgrade Completed January 2014 2650 Route Miles Covering 350 Rural Kansas

Communities

Capacity Upgrade CompletedCisco 100GB Coherent TechnologyLayer 2 MPLS TPSimplification of ProvisioningLower Cost of Operations and Maintenance

The 100G Cisco ONS 15454 MSTP Multiservice Transport Platform (MSTP) can support 42 100G wavelengths in a single bay, nearly three times the density of competing solutions

Private Line ServiceMEF Standard Products

UNI

Point-to-Point EVC

UNI

E-Line • Virtual Private Lines (EVPL)• Ethernet Private Lines (EPL)• Ethernet Internet Access UNI

Multi-point to Multi-point EVCUNI UNI

E-LAN • Multipoint L2 VPNs• Transparent LAN Service• Multicast networks

UNI

UNI UNI

Rooted Multipoint EVC

E-Tree • Rooted multi-point L2 VPNs• Broadcast networks• Traffic separation• EP-Tree, EVP-Tree

E- Access • Wholesale Access Services• Access EPL• Access EVPL ENN

I

UNI

Point-to-Point EVC

UNI Carrier Ethernet Access Network

Carrier Ethernet Service Provider

E-Access

Delivering services to carrier, government, education, health care and wireless industry customers

Voice ServicesTandem SwitchingDedicated Long Distance

Kansas Fiber NetworkOpportunities for Success

Wireless BackhaulShared VideoShared SwitchingPrivate Line Transport

KFN Wireless Backhaul

MSA Negotiations with “Elmo”, “Grover", "Uncle Sam” and Regional Wireless Providers Began February 2011

KFN Awarded 130+ “Elmo” Sites February 2012 First Wireless Backhaul Circuits Installed and Accepted

in April 2012 First 100+ “Grover” Sites Awarded October 2013

Providing a DWDM-based network: connecting the four corners of the Sunflower State — from city centers to family farms — ensuring secure, dependable connectivity

Wireless backhaul

Our state-of-the-art fiber-optic network — connecting Kansas through reliable, flexible bandwidth performance

Negotiating the MSA

Stringent SLA Requirements– Latency– Packet Loss– Jitter

Significant Penalties for Failure to Meet SLA

Service Level AgreementMetrics Measured

FOC DatesMTTRAvailabilityLatencyJitterCos/QoS

Packet LossCircuit AcceptanceMonitoring &

TestingLoopbackReal-Time Reporting

Monitoring & Reporting SoftwareRequired per MSA

Cloud Based– Faster Turn-up and

Configuration– Pay as you Grow– Smaller Capital

Investment

Server Based– More Control– Fixed Monthly Costs

Network Interface Devices

Required to ensure SLA Metrics Attainment

CyPortal for Performance Monitoring y.1731

RFC2544/y.1564 capable 10G and 1G Ethernet Test Sets

Network Interface Devices (NIDs)

MetroNODE 10G @ MTSO for Performance Testing and Monitoring.

Metro NID 1G @ Cell Site for Performance Monitoring and Testing.

Option #1:“Express fiber” from KFN nodeto cell site. CPE provided by KFN.

Option #3:Service on Member distribution network with member provided CPE. This option must have the capability to support SLAs (jumbo frames, low latency & low jitter). Passive NID installed by KFN for monitoring/reporting requirement.

Kansas Fiber Network

KFN node

KFN node

KFN node

KFN node

KFNNetworkInterface

Device

Option #2:Member Backbone network with “Express fiber” to site. This option must have the capability to support SLAs (jumbo frames, low latency & low jitter). CPE provided by KFN.

Port & route diverse 10 GigE aggregate interconnects

KFN NetworkInterface Device

KFNNetworkInterface

Device

MemberFTTH

DistributionNetwork

Membernode

Membernode

MemberBackboneNetwork

Member node

Membernode

MemberBackboneNetwork

Membernode

Membernode

MemberCPE

KFN NetworkInterface Device

KFNNetworkInterface

Device

Parameter Service Level Agreement RemediesFOC Installation greater than 5 days past FOC date. 1 x MRC Credit

TTR & MTTR Not greater than 4 hours (this is not average TTR, it is per case). MTTR of 2 hours.

2-8 hours – 40% MRC Credit8-12 hours – 75% Credit12 hours – 100% Credit

AvailabilityCell Site: .99995 (Four 9s and a 5) or 99.995% or 26.3 minutes downtime per year. (This parameter excludes Planned Service Outages.)

2-8 hours – 40% MRC Credit8-12 hours – 75% Credit12 hours – 100% Credit

LatencyFor fiber or optical networks, the 1‐way latency shall not exceed 5ms from cell to MSC. Waivers for very long paths (exceeding 100 miles) and in rural areas shall be considered on a case‐by‐case basis.

5 Days to Correct Service Degradation or Above Credits

May Be Requested

Jitter Total variation of 2ms (+/‐1ms)5 Days to Correct Service

Degradation or Above Credits May Be Requested

CoS/QoSTransport Provider shall not alter 802.1p bits. Transport Provider shall prioritize or honor traffic based on 802.1p markings (7=highest, 0=lowest).

5 Days to Correct Service Degradation or Above Credits

May Be Requested

CircuitAcceptance

Typical frame sizes of 64, 128, 256, 512, 1024, 1280,1518, and up to 2000 bytes shall be tested. RFC 2544 must be passed with zero frame loss. Future acceptance standards shall comply with Y.156sam when the standard is fully adopted and implemented.

Variance Provided or Customer Cancels Circuit

Circuit Monitoring & Testing

Circuit shall pass Y.1731 or 802.1ag. Customer will monitor the SLA parameters with Y.1731.

Variance Provided or Customer Cancels Circuit

Loopback Transport Provider shall have the ability to troubleshoot circuit using selective or hard loopbacks. Required

Real Time ReportingTransport Provider shall have circuit performance monitoring capability in real-time to include: availability, throughput (Mbps), delay, jitter, packet loss, other parameters as appropriate.

Required

Test and Turn-Up

Short and Long Physical Path Protection

Latency Waivers/Variance

Testing Methodologies (RFC 2544/y.1564

KFN Shared Video TransportTo reduce the cost of a CATV system, head end systems can be shared by several distribution systems

Integrated Receiver Decoder – IRD - Receives and decodes incoming video and media channels

Off Air Receivers – Receives, selects, and demodulates local broadcast channels

Encoders – Digitizes media (if in analog form), compresses, and formats the data and control signals to be transmitted

Transcoders – Adapts media formats (such as from MPEG-2 to MPEG-4)

Rate Shaper – Adjusts the transmission rates of each channel to better fit the transmission channel data rate.

Channel Modulators – Converts the digital video signals into modulated RF signals.

Channel Processors – Receives channels, processes the media (such as descrambles or decodes), and remodulates the signal to a desired RF channel.

Channel Signal Combiners – Combines multiple RF channels onto a single transmission line keeping the signals from one RF channel from pushing back into a transmitter.

KFN Shared Video Transport

New Revenue Source for Kansas Fiber Network 2 Consortia Formed in 2012 to Explore Share Resources First Group of 5 Customers Have Ordered Services Hub and Spoke Architecture Provisioned Via Ethernet Private Line

KFN Shared Voice Switching

In Response to FCC Order– Capped Support

Reductions in Customer Switching Expense– Depreciation– Maintenance– Labor

Shared Voice Switching

Utilize Centralized Softswitch and Related Gear– Session Border Controllers– Enhanced Application Servers– Call Feature Servers

Labor Savings– Software Updates– Routing Changes– Maintenance– Centralized Engineering and Technical Staff

Potential Product Set

KFN Hosted Gateway– Higher Initial Cost– Distributed/Redundant Architecture– Enhanced Service Features +

Voicemail– Member Owned/Operated Transport

Network– Lines/Trunks Terminate on Remote

Gateway

DLC Connection– via GR 303 or H.248 – Lowest Initial Cost– Enhanced Service Features +

Voicemail– Member Owned/Operated Transport

Network– Lines/Trunks Terminate on Local

Gateway

PSTN

SS7

MG3510

CFS A

A-links

DS-3s

IP-PBX

PerimeterSBC

SAS

Metaview

STP

IP

EAS(active / standby)

IP

KFN Network

IP (untrusted)

SIP

Hosted PBX

KFN N Clearwater

Notes

• EAS = Enhanced Application Servier• N-series used for music on hold, conferencing, firebar, mass announcement• SBC = Session Border Controller• CFS = Call Feature Server (e.g. Class 4/5 and hosted PBX features)

N-Series

CFS B

Metaview(standby)

KFN Wichita

KFN MemberCustomer B

MG3510(with ESA)

LocalTrunks / 911

SS7

STPT1s

GR303 orSIP/H.248

DLC

KFN MemberCustomer A

MG2510(with ESA)

LocalTrunks / 911

SS7

STPT1s

GR303 orSIP/H.248

DLC

KFN MemberCustomer C

LocalTrunks / 911

GR303 orSIP/H.248

DLC(with ESA)

Thank you!Scope, Scale and Success