1. Optical Fiber: How About Fiber to YOUR Desk? Presented by: Bob Ballard, RCDD Registered Communications Distribution Designer Certified Fiber Optics Installer Sponsored by: P A R A G O N Scientific Corporation

2. Agenda Fiber to the Desk: Where Is It Cost -Effective Today? Technology Review Expanded TIA Fiber Optics LAN Section Scope Cabling market review & forecast Comparing fiber installed first costs with copper Costs Analysis Summary Testimonials Summary

3. Fiber Optics Technology Review How is 50 µm different from 62.5 µm? * Same Cladding Diameter * Only core size differs * Numerical Aperture > 0.200 - 50 µm > 0.275 - 62.5 µm. 62.5 µm 50 µm Core

4. TIA Fiber Optics LAN Section Formed in 1993 as part of TIA’s Fiber Optics Division Expanded Mission: To create a resource where people can learn about the technical advantages and affordability that optical transmission brings to customer- owned networks Members Include: 3M, ADC, CommScope, Corning, Fluke Networks, Leviton Voice & Data, OFS, Optek Technology, Ortronics, Panduit, Pearson Technologies, Sumitomo Electric Lightwave, Tyco/AMP Electronics

5. Expanded Focus Result of Target Audience and Member Input? Fiber-based LANs Storage Area Networks (SANS) Data Centers Industrial Applications Building Automation Systems Fiber In Security Systems Fiber In The Home

6. Market Trends Copper and Fiber Cable Shipment Forecast* * Source: “US Building Fiber And Copper Cabling Systems” FTM Consulting, February 2003 ftm.consulting@gte.net

7. Selecting the Horizontal Media UTP Copper or Multimode Fiber UTP Copper Perceived Lowest System Cost The “easy” Choice Universal Familiarity Smooth Ethernet Upgrade Path More Complex to Install and Test Susceptible to EMI, RFI & Crosstalk Limited Cable Pull Strength 100 Meter Maximum at 1 Gbps Shorter Useful Life Not “Future Proof” Multimode Fiber Higher Bandwidth Immunity to EMI, RFI & Crosstalk Greatly Simplified Installation Greatly Simplified Testing Enables Centralized Cabling Superior Cable Pull Strength Lower Initial Installed Costs w/Centralized Architecture Lower Life-Cycle Infrastructure Cost Cost Effective Ethernet Migration “Future Proof” Perception of Complexity Less Installer Familiarity Electronics Still Priced Higher

8. Fiber - Copper Cable Shipments Cable Product Value Shipments * Source: “US Building Fiber And Copper Cabling Systems” FTM Consulting, February 2003 ftm.consulting@gte.net

9. So - Why Not More Fiber? Are Costs Really Higher? Perception: Fiber is still more expensive than copper Reality! Fiber is less expensive in many applications Erroneous Assumption: Fiber networks should be designed and installed exactly like copper networks Reality! The installation is in fact much different Erroneous Assumption: Fiber is more difficult to install & test Reality! Fiber is much easier to install and test Finally: Designing fiber networks based upon its capabilities saves thousands of dollars compared to copper

10. Comparing Fiber - Copper Costs Several Comprehensive Studies Tolly Group, August 2000 Migrating to Fiber-The Case for Centralized LAN Cabling Still available for download #200505 http://www.tolly.com/UTS/UTS_home.aspx TIA Fiber Optics LAN Section, November 2001 First Generation Cost Model Very Popular Web Site Download TIA Fiber Optics LAN Section, July 2003 Second Generation Cost Model New Model Available For Download: www.fols.org Also Visit Pearson Technologies Web Site: www.ptnowire.com

11. Second Generation Cost Model Significant Market Changes UTP Component Prices Have DECREASED Fiber Component Prices Have DECREASED Fiber Transciever Prices Have DECREASED Long wavelength (1300 nm) substantial price decrease Short wavelength (850 nm) have also decreased Overall Network Costs Have DECREASED UTP / Fiber Network All Fiber Network

12. Model Assumptions - Installed First Costs Hierarchlcal Star UTP vs. Centralized Fiber Building Model 8 Story, 48 Ports Per Floor Costs Calculated on “Per Port” Basis Port Utilization Copper: 70% Fiber: 90% Riser Subsystem Fiber Used in Riser Subsystem (Both Models) Horizontal Subsystem UTP: Cat 5e or Cat 6 UTP Fiber: 62.5 or 50 µm Multimode Fiber

13. Comparing Installed First Costs Additional Assumptions Labor Rate $60.00 Per Hour Telecom Room Construction Costs $150.00 Per Square Foot 5 - Year Power Costs Lighting, Heating & Cooling Note: Does not apply to Centralized Fiber Network Estimated at $450.00 For 5 Years Cost Models Completely Interactive See Chart at www.fols.org & Input Your Own Numbers

14. Telecommunications Room (TR) Costs Significantly Less Expensive With Fiber

19. Electronics