Last Mile Fiber Delivery Solutions Using Labor-Lite Technology April 2015 Presented by Clearfield Rapidly Growing Public Company Revenue Cash & Investments 2014 $35 $30 $25 $20 $15 $10 $5 $0 2008 2009 2010 2011 2012 2013 2014 Cash & Invest $33.1 Debt/LT Liab $0.0 Equity $46.7 ROE 12.5% Top Small Companies in America NASDAQ: CLFD Market Cap of over $200 million Strong balance sheet with significant cash and no debt. Fiber Terminations Guaranteed to .2dB; Terminations third party tested compliant to GR:326; Certification pending 2 System Integration and Pilot Production Center for Excellence – Brooklyn Park • Doubled warehouse storage (Jan/15) • 50% greater production space (Jan/15) • Adjacent building space for lease could triple production capacity 4 Mid/High Volume Production Center of Excellence: Shenzhen and Shanxi, China • Dedicated workers with ability to scale rapidly • On-site Clearfield personnel – Performs Supplier Audits and Oversight Functions – Monitors Quality Issues and Corrective Actions – Assists with New Design Implementations Center of Excellence: Mexico • Managed directly by Clearfield Director of Manufacturing • Established June 2014 • Capacity available to grow 400% rapidly 5 Industry Drivers- Fiber Appetite Is Not Slowing Down • Last Mile Fiber is being deployed everywhere to support • • • • • • Fiber to the single family unit Fiber to the MDU/apartment/condo Cell Towers Business Parks Downtown DAS systems Universal Drivers for these applications include • Desire to turn up service quickly • Minimize disruptions/interruptions • Minimize costs Getting To The Final Drop is Not Always Easy • The path from existing fiber networks to the final connection point usually passes across streets, sidewalks, parking lots and other high traffic pathways • There is a heightened sensitivity to the “hassle factor” of reaching the final fiber drop point Conventional Construction Techniques Are Not the Answer Consider New Technologies Conventional construction involves: • • • • • Large open trenches Heavy equipment/trucks Closed streets and sidewalks Barriers & detours Week long projects New technologies are available to address the “hassle factor” concern and have the added benefit of reducing project costs. New Technology- Micro-Trenching Micro-Trenching • • • • One small cut 1 inch wide 1 pass with no fill Minimal disruption to vehicle/pedestrian traffic Quickly sealed with hot polymer or premium grout Open-Trenching • • • • Two cuts 12 inches apart plus trenching 2 passes with added excavation and fill Prolonged street closures and detours Multiple applications of new pavement with added time for curing In a recent study involving 40 sites in a major metropolitan area, labor and material costs were compared between conventional open trenching construction techniques and installations using micro-trenching with micro ducts. RESULTS: 50-60% reduction in work operations and costs using Micro-Trenching/Micro Ducts New Technology- Micro Duct in Micro-Trenches • • • • Many types to match indoor and outdoor installation environments One size to accommodate 1,2,6 & 12 fiber cable Larger sizes for 24 and 48 fiber cables Fits easily inside micro-trenches and has High Crush Resistance and High Tensile Strength ratings Direct Buried (Non-Tonable) Direct Buried (Tonable) Indoor Plenum Available In Orange and Black Available In Orange Available In White Riser Available in Beige Aerial 200 (Figure-8) Aerial 500 (Figure-8) 200’ span lengths 500’ span lengths New Technology- Microduct Microduct can also be deployed in existing partially filled ducts in crowded telephone rooms. New Technology-Micro Duct Micro Duct is lightweight and a perfect alternative to hanging heavy cables on the tower. In addition to saving thousands of pounds of dead weight, a significant amount of tower wind load can be eliminated based on the lower profile of a micro duct compared to multiple stacked copper cables. New Technology- Small Diameter Pushable Fiber Cable With Factory Connectorized Ends Pushable fiber can be easily installed in micro duct without special equipment. With factory terminated LC or SC connectors on both ends, no splicing or splice-on connectors are needed, saving valuable skilled labor resource that now can be deployed to other aspects of the network Pre-Terminated SC Pushable Connector Pre-Terminated Pushable Assembly FieldShield 1 Fiber 250um Cable Outer & inner housing attached after cable is pushed through duct New Technology- Micro Duct for Cable with Factory Terminated MPO Connector Plug and Play solutions using ruggedized cables with MPO connectors reduces installation time and labor costs compared to splice solutions Micro Duct with 14mm OD, 10mm ID large enough for MPO connector Pre-Terminated MPO Pushable Connector Cast Study- Total Cost of Ownership What happens after the drop is installed? Independent analysis from a market research and consulting organization confirms that the costs associated with maintaining a drop cable when deployed using micro ducts and pushable fiber are greatly reduced (over 45% lower) compared to the costs to repair a direct buried drop cable. Example. A traditional network repair can require up to 4 truck rolls to determine, locate, plow and splice. A network using micro duct and pushable fiber can be restored with one truck that can locate the problem, repair the duct, pull out the severed fiber, push a new cable and finally plug in the subscriber. Download the complete report from Clearfield at http://www.clearfieldconnection.com/downloads/whitepapers/ClearfieldTCOReview140916Final.pdf New Technology- FieldShield SmarTerminals FieldShield SmarTerminals are deployed to provide quick connections between distribution points and final drop points. Rather than splicing, connectorized MPO cables can be deployed to enter the SmarTerminal. On the drop side, cables plug into the SmarTerminal on one end and to the ONT on the other end. Distribution Point Drop Point Connectorized MPO cable Service Point Drop cables with connectors on both ends New Technology- FieldShield SmarTerminals Connectorized SC Drop Cable Simplex SC or Duplex LC drop ports Connectorized MPO Input Cable New Technology- FieldShield SmarTerminals The SmarTerminal easily installs in conventional housings including “Flower Pot” handholes, pedestals and conventional vaults. It can also be strand mounted in aerial applications. Labor-Lite Technology Using micro duct and micro cable with factory terminated connectors on one or both ends, in conjunction with SmarTerminals, are examples of Plug and Play solutions that reduce labor time and labor costs during installation by eliminating the need for splicing. Labor-Lite solutions further enhance service deployment by reducing the need to pre-engineer exact cable lengths in the network. With flexible small diameter cables, cable slack can easily be stored in existing spaces, saving material costs associated with slack management devices. Labor Lite Technology Reduces Pre-Engineering Improves Reliability Lowers Costs Maximizes Subscriber Revenue Installs Quickly Labor Lite Technology- FieldShield Pushable Fiber FieldShield Pushable Fiber is small, very flexible and easy to work with. Extra slack can be coiled up on either end (ONT or pedestal) eliminating the cost of providing a separate storage device for flat drop cable. It also reduces pre-engineering by eliminating the need to determine exact cable lengths. Labor Lite Technology- FieldShield StrongFiber FieldShield StrongFiber is the industry’s first 900 micron OSP drop cable, delivering exceptional pull strength with reduced cable size and material weight. StrongFiber has a very flexible jacket and can be connectorized on both ends. It is shipped with a compact 4” diameter deploy reel that holds up to 500 feet of cable, making precise preengineered drop cable lengths a thing of the past. 900 micron OSP Drop Cable Compact Deploy Reel 4” diameter Demarc Box FieldShield Integrates With The Entire Suite of FieldSmart Solutions 22 Summary Many new and exciting technologies are available today to deploy fiber in the “Last Mile”. Microducts and flexible pushable fiber cable reduce the hassle factor and negative impact on the installation surroundings. Connectorized Plug and Play products save labor costs by reducing the need for splicing in the field. Labor-Lite solutions reduce pre-engineering expenses by eliminating the need to determine exact cable lengths. Flexible small diameter drop cables reduce overall project costs by eliminating the need to provide separate devices to store extra slack. For more information, please contact me. Scott Bohaychyk Product Marketing Clearfield, Inc. [email protected] www.ClearfieldConnection.com
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