[1st-mile-nm] National Lambda Rail shutting down

Fri Mar 28 12:22:22 PDT 2014

I have to say, while this turn of events is of concern, congratulations to UNM for working very quickly and making the change-- and not having any significant issues to have been noted on this list! 

Nerissa 

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----- Original Message -----

From: "Gil Gonzales" <gonzgil at unm.edu> 
To: "James Sturges" <jhsturges at att.net> 
Cc: 1st-mile-nm at mailman.dcn.org 
Sent: Friday, March 28, 2014 8:20:35 AM 
Subject: Re: [1st-mile-nm] National Lambda Rail shutting down 

UNM migrated all services from NLR to Internet2 prior to the March 17 Level3 network demise. Other than a limited number of latency issues on research connections, the migration was completed without disruption to ABQG's users. 

Our current service provides ABQG with 10gb wave service from Albuquerque to our regional collaborators and to research organizations on the Internet2 network. We will continue to explore options to expand connectivity, provide diversity, and to increase our service options in support of UNM's institutional mission. The Internet2 AUP allows for the use of their network for commercial use. ABQG focuses on services to educational institutions. 

As for the network demise, several notes in this thread outlined the "New NLR's" financial insolvency with Level3. We were notified in mid-Feb 2014 about the pending demise. UNM and other prior Class A members continue to review our legal position regarding any possible return of assets to New Mexico. As of today, none of the NLR IRUs are available to any Class A member. 

UNM and New Mexico's research institutions have gained significant value and access to our national and regional collaborators on NLR. We expect to pursue access to other national/regional fiber/wave capacity up to 100gb that will allow New Mexico's institutions to compete. 

Gil 

--------------------------------------------- 
Gil Gonzales, Ph.D 
Chief Information Officer 
University of New Mexico 
gonzgil at unm.edu 
505-277-8125 

From: 1st-mile-nm-bounces at mailman.dcn.org <1st-mile-nm-bounces at mailman.dcn.org> on behalf of James Sturges <jhsturges at att.net> 
Sent: Thursday, March 27, 2014 1:58 PM 
Cc: 1st-mile-nm at mailman.dcn.org 
Subject: Re: [1st-mile-nm] National Lambda Rail shutting down 

I remember when IRUs were Indefeasible. 

-----Jim 

From: Steve Ross <editorsteve at gmail.com> 
To: C Steven Lucero <cstevenlucero at latingroupllc.com> 
Cc: Richard Lowenberg <rl at 1st-mile.org>; "1st-mile-nm at mailman.dcn.org" <1st-mile-nm at mailman.dcn.org> 
Sent: Thursday, March 27, 2014 12:49 PM 
Subject: Re: [1st-mile-nm] National Lambda Rail shutting down 

Yeah but they can't simply abrogate an IRU. In this case, I believe, the lease runs until 2026. The IRU document almost always includes a maintenance deal that gets renegotiated (annually, often, but in this case 7 years) because maintenance is an opex, But the IRU continues for the 20 years. It is capex. IRUs are often paid in advance, too. Nice to know Level3 has a new current policy but it normally would not affect old deals.I might add that even with unpaid bills, a nationwide fiber pair on Level3 has gotta be worth a hell of a lot more than the $100 million that supposedly changed hands. 

In short, something is weird here. I just suspect we don't know the facts for sure. 

BTW, if you know anyone interested in IRUs or straight investment on Emerald, a 6-pair trans-Atlantic build that is supposed to commence in a few months, send them my way. 

Steve Ross 
Corporate Editor, Broadband Communities Magazine ( www.bbcmag.com ) 
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On Thu, Mar 27, 2014 at 1:30 PM, C Steven Lucero < cstevenlucero at latingroupllc.com > wrote: 

Can't be done, at least from what I'm being told. The 3 years of debt still has not been paid to L3. Under new corporate policy, L3 has ceased selling AND leasing dark fiber. Moreso, of the $100MM Dr. Soon invested into NLR, there are supposedly $36MM unaccounted for. Looks to be an ugly legal (or criminal?) situation. 

C. Steven Lucero 
President 
LatinGroup LLC 
(505) 217-9212 

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On Thu, Mar 27, 2014 at 10:04 AM, Steve Ross < editorsteve at gmail.com > wrote: 

<blockquote>

Even though the new owner walked away from NLR, maybe it still has assets, or NM could challenge the deal... or NM could move over to the I2 system. Long shots all. But the original NLR "lease" on the fiber would under normal circumstances run to 2026, if what I remember is correct. Certainly, the lease document itself and the issue of who provides the managed services (lights the fiber, mainly, and maintains it), should be known by university (customer) IT departments. 

Steve Ross 
Corporate Editor, Broadband Communities Magazine ( www.bbcmag.com ) 
201-456-5933 mobile, 781-284-8810 landline 
707-WOW-SSR3 (707-969-7773 ) Google Voice 
editorsteve (Facebook, LinkedIn) 
editorsteve1 (Twitter) 
steve at bbcmag.com 
editorsteve at gmail.com 

On Thu, Mar 27, 2014 at 12:00 PM, Owen Densmore < owen at backspaces.net > wrote: 

<blockquote>

Could someone summarize/simplify for this noob!? Fascinating stuff. 

-- Owen 

On Wed, Mar 26, 2014 at 10:17 PM, Steve Ross < editorsteve at gmail.com > wrote: 

<blockquote>

That's odd. I thought the IRU ran for 20 years starting in 2006. I think your friend meant the managed service contract with Level3, which would have been due to expire in 2013 (It was the typical 7 year deal, I think, and also started in 2006, because NLR was originally on a Qwest backbone for the first few years). Does this mean the NLR leased fiber, though dark, still is an NLR asset? Or did the IRU go back to Level3, perhaps to settle the debt on the service contract? As I remember, the IRU was for a fiber pair going everywhere Level3 went, or everywhere in the United States. I know a lot of the colleges on NLR also are on I2, and not many probably need both, but I2 isn't secured by an IRU -- Level3 lights it more or less the way Level3 wants to light it. So it isn't as useful as a research tool, I would think. But it still is capacity that maybe NM schools can use? 

Steve Ross 
Corporate Editor, Broadband Communities Magazine ( www.bbcmag.com ) 
201-456-5933 mobile, 781-284-8810 landline 
707-WOW-SSR3 (707-969-7773 ) Google Voice 
editorsteve (Facebook, LinkedIn) 
editorsteve1 (Twitter) 
steve at bbcmag.com 
editorsteve at gmail.com 

On Wed, Mar 26, 2014 at 11:20 PM, C Steven Lucero < cstevenlucero at latingroupllc.com > wrote: 

<blockquote>

Richard, 

I met this week with a person intimately familiar with this. In short Level3 issued a policy in recent years that they would not renew any fiber IRU's. Simulataneously, it was learned that NLR was 3 yrs in default of payments, which was not disclosed to Dr Soon-Shiong. Given that the term of the IRU was coming up, he declined to pay the balance due and L3 cancelled the contract. This happened in Jan. 

Just an FYI. 

Best, 

Steven 

On Wednesday, March 26, 2014, Richard Lowenberg < rl at 1st-mile.org > wrote: 

<blockquote>

Thanks for the posting, John. 

It would be good to hear from UNM, State IT staff or others with knowledge about this, as there has been little press coverage on the matter. 

This from Wikipedia: 
In November 2011 the control of NLR was purchased from its university membership by a billionaire Patrick Soon-Shiong for $100M, who indicated his intention to upgrade NLR infrastructure and repurpose portions of it to support an ambitious healthcare project. 
The upgrade never took place. NLR ceased operations in March 2014. 

RL 

On Mar 26, 2014, at 7:51 PM, John Brown wrote: 

<blockquote>

Various educational institutions are reporting that the National 
Lambda Rail will cease operations shortly. 

What does this mean for NM, UNM, NM State, and the taxpayers of NM 
who have invested heavily into this infra-structure. 

Santa Fe's recent "fiber RFQ" was relying on using NLR assets to get 
to the world and thus hopefully reduce the cost of bandwidth... 

--------------------------------------------------------- 
Richard Lowenberg, Executive Director 
1st-Mile Institute www.1st-mile.org 
P. O. Box 8001, Santa Fe, NM 87504 
505-603-5200 rl at 1st-mile.org 
--------------------------------------------------------- 

</blockquote>

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