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Richmond firm chases final fibre-optic mile
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By Maurice Bridge
Originally Published: November 7th, 2001
By: The Vancouver Sun


Theresa Carbonneau is on the roof of a building in a Richmond industrial park, smiling for the camera as a sharp southwest wind chills her. She doesn't seem to mind.

She's president and CEO of fSONA Communications Corporation, and after five years of turning an idea into a corporate reality, a little cold isn't that hard to take.

fSONA is picking up where a substantial chunk of the high-technology industry left off. Fibre-optic technology, with its huge capacity for moving information at high speed, has been touted as the future of the Information Age. But in recent years, overbuilding by fibre-optic cable companies and the collapse of the high-tech bubble has seen a number of fibre-optic companies go bust, and more than 90 per cent of the cable remains idle.

One of the stumbling blocks is the so-called Golden Mile -- the final mile or so which separates about 90 per cent of buildings which have fibre-optic cable in them from the fibre-optic backbone that could connect them with the rest of the world. Bob Kehr, fSONA's chief operating officer, nails it in a single sentence: "It's like when they built the information highway, they forgot the off-ramps and on-ramps."

Despite the promise that fibre optics offers, the disruption caused by digging up streets to make the connection has been enough to make some cities -- San Diego and London among others -- either impose a moratorium or think seriously about it. In January, the Canadian Radio-television and Telecommunications Commission rejected an attempt by the City of Vancouver and other Canadian municipalities to collect tens of millions of dollars a year in fees from companies that wanted to install fibre optics under city streets.

However, the CRTC did allow municipalities to collect hard costs such as paperwork at city hall, repaving roads and making up for lost revenue from parking meters. For that, Vancouver will work a deal or charge a flat fee of $10 per metre, meaning the Golden Mile will cost $160,000 before the holes are dug or the cable is even purchased. The fees the CRTC stopped it from collecting (the decision is under appeal) were around $20 per metre.

fSONA's technology literally jumps over all that: It uses laser technology to link fiber-optic networks by using line-of-sight transmitter receivers that operate 100 times faster than the T-1 lines offered by most telephone companies. The retail cost is around $30,000 -- approximately 10 per cent of the total cost of digging through the streets.

The system can operate from rooftops or even through glass. "If you have two businesses with windows facing each other, we could set it up in an afternoon," says Kehr, an aeronautical engineer who spent 20 years with the U.S. Air Force before joining the high-tech industry.

Equally attractive, especially in light of the appeal of the CRTC decision, is the fact that unlike radio-frequency systems, optical wireless-based communications systems require no licensing. They do, however, need to meet industry standards that guarantee they won't damage the vision of people who pass through the beam. fSONA uses a 1,550-nanometer wavelength which meets eye-safe standards and also allows it to put a lot more power behind the signal, so that rain, fog and passing seagulls don't interrupt the signal. The units on the roof of fSONA's headquarters send and receive data across as much as five kilometers.

Carbonneau, who worked a a telecom executive in England before coming to Canada at the end of 1988 with her new husband, saw the market for the technology while she was working with B.C. Tel. "It was always a push to get fibre, it was always a push to go to the next level and this was really a no-brainer, because there really is no alternative right now."

In 1995, she took the plunge, dropping the day job and digging into research. The original technology fSONA uses (the name stands for free space optical networking architecture) was developed in England, and she licensed it from her old employer, British Telecom, in 1997. Since then, she has built a team of about 70, pulling in experts from around the world. While she wouldn't mind seeing lower taxes for her highly-educated crew, she says a strong team approach keeps the operation vital: "It was a mixture of the exciting technology application -- it really is at the forefront of wireless technology, there aren't that many companies in the world doing it -- and the team that we have."

Private investors have underwritten their efforts to the tune of $27 million so far, and Carbonneau and Kehr expect the company will be profitable around the end of next year, or the beginning of 2003. fSONA made its first sales in May of this year, and now has about 50 installations around the world.

As the sales effort ramps up, Carbonneau is spending long hours on the road. She says she has about five serious competitors worldwide, and she plans to stay ahead of them. On Friday, she was in San Francisco; this week, it's Boston. But she doesn't miss working for someone else, and she remains as charged-up about her business as she did when she started it.

"I love this sector, I love it very much -- the telecom industry, the opportunities in it -- and this technology is just the most perfect technology for it."