Long-haul typically relates to fiber that runs between major city pairs. Allied Fiber offers several long term, long-haul routes to clients via two options: (i) 20-year IRU, and (ii) Lease-to-IRU. In both options, Colocation facilities are available every 60 miles along the long-haul routes.
The first build-out includes the following long-haul routes:
1. Miami, FL to Jacksonville, FL
2. Jacksonville, FL to Atlanta, GA
The following routes are being built and will also be available to customers:
1. New York, NY to Chicago IL
2. New York, NY to Ashburn, VA
3. Chicago, IL to Ashburn, VA
20-year IRU Option
This option allows Allied Fiber's clients to enter into a 20-year irrevocable long-haul lease to use dark fiber in the routes described above. The basic terms of the lease includes: (i) a one-time payment (with some portion due at the time of lease execution and the balance due at the time of delivery), and (ii) annual recurring payments for O&M.
This option allows Allied Fiber's clients to enter into a long-haul lease for a 12, 24 or 36-month term ("Initiation Term") to use dark fiber in the routes with an obligation to convert the lease into a 20-year IRU lease at the end of the Initiation Term. During the Initiation Term, clients make monthly payments to Allied Fiber for the right to use dark fiber and normal maintenance. At the end of the Initiation Term, clients pay a one-time fee for the 20-year IRU option, and make annual recurring payments for O&M.
Short-haul differs from long-haul as a dark fiber product in that it is built specifically for short distance use and purpose. The construction of this fiber cable is not unlike that of a short-haul cable in that it is built to be accessed
for the purposes of adding or dropping off network services in a particular area, such as a smaller city, wireless tower, or market between the larger cities. In addition, the fiber can be accessed at every Allied Fiber colocation facility for the purposes of cross connecting, regenerating, or optical switching. The key difference is that short-haul focuses on 60 mile segments of the "route" verses the major city pairs such as New York to Chicago.
Allied Fiber offers clients short-term, short-haul leases along the Network. For the short-haul routes, the clients have an option to enter into a variable term lease ranging from a 1-year lease to a multi-year lease. The basic term of the lease requires clients to make monthly payments to Allied Fiber for the right to use dark fiber and maintenance.
Short-haul fiber serves those users that need fiber only in an intermediate area and do not wish to purchase an entire long-haul pair of fibers. In addition, since it is a pre-defined product, it benefits the builder of such a cable in that it can be fabricated properly and optimized for quality, efficiency and effectiveness.
With the addition of short-haul cable product in each new route, there are many new potential customers that could not previously be serviced by the long-haul cable model of the past.
Some of the user groups include:
Local business offices: sales, manufacturing, headquarters
Government agencies, such as Department of Transportation (DOT) and Department of
Homeland Security (DHS)
Research and educational institutions
School systems, University campuses
Mobile network providers, backhaul providers
Within each of these groups, there are several potential users and even more applications that further drive the need for fiber for each of them. Although each of these groups has an immediate need for fiber, the wireless group has probably one of the most significant immediate needs.
Short-Haul Route Segments
1. Subway/Duct in Manhattan, New York, NY
2. Trans Hudson River Tunnel, NJ
3. Hoboken, NJ
4. Port Reading Junction, NJ
5. Harrisburg, PA
6. Pittsburgh, PA
7. Cleveland, OH
8. Toledo, OH
9. South Bend, IN
10. Indiana Harbor, IN
11. Chicago, IL
12. Front Royal, VA
13. Marshall, VA
14. Ashburn, VA
The basic utility and ultimate success of next-generation, broadband wireless service relies heavily on the availability of fiber at the wireless tower sites. Without fiber, the new high-speed mobile services currently being touted by almost every wireless service provider, will be insufficient to keep up with the capacity demands of their users.
The Fiber to the Tower (FTTT) product is designed specifically for the wireless backhaul industry. Until now, FTTT has been used only in reference to the action of bringing fiber to a wireless cell tower. Allied Fiber has created a specific product, FTTT, which takes a dedicated portion of the fiber in the short-haul duct and sets it aside for the purpose of being accessible on an even shorter distance basis than short-haul (approximately every 1-2 miles), thus making it easier to create a lateral extension from the backbone where the towers are located.
Allied Fiber has created the FTTT defined product and set aside a portion of its larger count fiber cable for this user group in such a way that it supports lateral construction to existing towers from the greatest vantage point possible, by having multiple proximate options for access. Even though this concept is a leap forward in regards to addressing the problem, it still may not solve every issue that exists with bringing fiber to existing towers. For that reason, Allied Fiber sees an upside in constructing its own wireless towers on the railroad right of way in order to have fiber directly accessible to the tower without the need for any lateral construction. This opportunity is driven by the fact that Allied Fiber has already identified several customers that need towers with fiber backhaul along the railroad.
The Network also contains numerous colocation facilities owned and operated by Allied Fiber. These facilities are located approximately every 60 route miles (100km) along the Network. Clients have an option to lease cabinets in these facilities for a one-time setup fee and monthly recurring payments for rent and maintenance. In addition, clients are responsible for paying a one-time electrical connection fee and monthly power usage fees based on ampacity and backup generation requirements.