Minnesota Fiber Exchange

Minnesota Fiber Exchange (MFE) is building new model focused on fiber connectivity that provides benefits to service providers, local units of government and business end users.  The goal of MFE is not to just create a “stand-alone” technology park but instead create a metro-wide “network of technology parks”.  We are currently seeking potential business partners and investors. To learn more about this exciting opportunity contact John Schultz at jschultz@u-rekabroadband.com or 651 967-7196. 

Concept:  MFE was created to bridge the divide between service providers and local units of government in creating “open access” dark fiber networks in which service providers can reach a new customer base and municipal units of government can tout a technology advanced infrastructure to help aid in economic development. 

Description of Need:  Currently fiber-to-the-business networks are only built when required by a particular customer.  Each network is built by an individual service provider to serve its particular customer and if the customer next door requires a fiber service from a different provider a duplicate distribution network is built to serve that customer.  This can cause a right-of-way quagmire with multiple providers each who have duplicated capital costs or in some cases restrict the deployment of fiber-to-the-business services as an individual carrier cannot justify the capital cost to serve a single customer. 

Solution:  MFE in partnership with local units of government build carrier-neutral, open-access, dark fiber networks that are open to all service providers to compete for end-user customers.  Carrier Neutral means any service provider, ISP or business can utilize the fiber network.  Open Access-in this particular business model means only dark-fiber services; electronics are placed by the individual service provider to meet the needs of its customer.  In the event that a local unit of government and MFE utilizes limited existing infrastructure “wave-length” services might also become available.  At each community or business park a regional data center is created where the dark fiber network is accessible to carriers and ISPs.  The regional data center provides “machine room” space combined with “carrier-class” facilities including environmental systems for heating, cooling and humidity control, fire, entry and security systems, co-location facilities for carriers, ISPs, telephone companies, businesses and other service providers.  MFE becomes the manager of the network for the local unit of government, provides operational and sales experience and is the point-of-contact for potential users of the network.  MFE will provide a SLA for both its relationship with the local unit of government and also the service providers that ride the network. 

Benefits:  Benefits are broken up into three categories; service providers, local units of government and end-users.

• Service Provider benefits - reduces capital costs to reach new customers with high-bandwidth services.  Service provider only expends capital when it secures a new customer.  Service Providers can continue to differentiate itself by the services it decides to provide and allows innovation of new higher bandwidth services utilizing fiber optics.
• Local Unit of Government benefits - fiber connectivity creates an important economic development tool for local units of government.  In the open access model the economic development tool is even greater; the local unit of government can not only tout fiber connectivity but also competition for services across the network.  For the local unit of government its investment into the fiber infrastructure is like other infrastructure investments to facilitate economic development such as roads and sewer and water connectivity.
• End User benefits - the ability to choose from multiple providers for its services and also ends the duopoly of the incumbent telephone company and incumbent cable company in providing services.  End-user can also change service providers without the traditional high cost of a new fiber connection as the fiber is owned by the local unit of government and managed by MFE.