FTTH Providers Focus on ‘Convergence;’ Partner with Integrators

"How often does an integrator actually sit down with the phone company or cable company and map out how the two parties will interface with each other?" asks Jason Scutt, EVP of Connexion Technologies, the second largest deployer of fiber to the home (FTTH) in the United States.

Presumably, the answer is "not very often."

Scutt's hypothetical question aims to emphasize why for Connexion, the "concept of convergence is truly the key to delivering quality service to our customers."

Connexion's customers, on the surface, appear to be developers, since the company has provided fiber services to dozens of developments. Developers, however, merely scratch the surface of Connexion's client base.

Addressing its end-user clients, Connexion recently announced a partnership with Magnolia Audio Video, the stand-alone stores owned by Best Buy. (The deal does not include Magnolia Home Theater, which has stores inside some 300 Best Buys).

Connexion isn't the only FTTH provider seeking partnerships with integration companies. Verizon, the leading provider of FTTH service in the United States, for instance, recently partnered with Make It Work Inc., a Santa Barbara, Calif.-based home technology service provider.

These types of partnerships serve to get essential providers of home systems communicating with one another, explains Scutt. He calls Magnolia one of Connexion's "cornerstone partners" and says it's indicative of an emphasis on "managed convergence."

In order to optimize the benefits of FTTH technologies for any partner -- builders and developers, for example -- Scutt says it's important for Connexion to manage the convergence of all the different players.

The "managed" is a key differentiator, he adds, "from many predecessors that have attempted and failed with the convergence model [because] they come at it from a one-throat-to-choke perspective, which is doomed to fail as no one company has the multitude of core competencies or resources required to deliver the promise.

"With our approach, it's based on the premise of one-less-throat-to-choke as the partners stay focused on their own core competencies, [and we stay] centered on our FTTx and the premise of cooperation. It's a simple concept but it's a revolutionary approach."

Central to Connexion's convergence approach, Scutt explains, is the understanding that the customer actually changes during the construction process; first it's the developer, then it's the builder, then it's the owner or guest and the property manager.

"The four customers have needs diametrically opposed to one another," Scutt explains.

Connexion provides the FTTx for these "customers" during construction whiel other technology trades and services "hang off of our infrastructure or utilize our services (e.g. phone, cable, Internet, WiFi, etc.)," Scutt says.

"As a result, Connexion is in a unique position to first recognize the interfaces, often in uncommon places, and then reach out to help coordinate cooperation through the eco-system."

By "eco-system" Scutt refers to its system of partners designed to "cooperatively view the entire project from inception to the ongoing operations and deliver a cooperative solution to reduce redundancy and create 'cap-ex' and 'op-ex' efficiencies while also considering the overall implications to the customer. The result of our program is that the customers benefit from the collaborative efforts and the ecosystem benefits by increasing competitiveness and sales channels."

One tangible benefit of these collaborations might be increased awareness of FTTH technology. Service providers such as Connexion and Verizon have been frustrated by the low FTTH connectivity rate.

Less than one in seven homes "passed" with fiber is actually connected. This is primarily due to the fact that many homeowners do not experience the full benefits of a fiber network until they have installed a home theater with HD or need to download HD movies.

The Magnolia partnership could help to overcome those barriers and boost the connectivity rate.

"Developers, builders and operators all benefit from collaborative, cooperative approach," says Scutt. "This partnership will maximize efficiencies and help ensure the fiber to the home services work with the electronics."

Steve Delp, chief operating officer at Magnolia Audio Video says it's a "key partnership" that will "help bring to life the enhanced bandwidth."

He adds, "This will take the digital home to the next level."