I finally did what I should have done a year ago, wrote a summary in English
of  cooperative networking activities in Finland. Unhappily the text become
quite long, so I will split it up in two parts.

 - This part 1 covers general trends in Finnish housing cooperatives.
 - Part 2 will focus on our local activities in Helsinki, Ethernet, rewiring
   and open WLAN.

I will write a third post about my trip to New York at the end of this
month.


-- 
Petri Krohn
Helsinki Neighborhood Networking Association
HelsinkiOpen  --  http://www.helsinkiopen.net

[EMAIL PROTECTED]
Skype:   callto://pkrohn-fi



*** *** ***

Shared Internet access in Finnish housing cooperatives


The beginning - Operator-driven networks

The first Finnish in-house networks were built in the late 1990's when
construction companies began installing structural cabling in new apartment
buildings. An Ethernet LAN was used to provide Internet access to residents.

This brought external service providers in to the in-house network. In this
business model the operator (telco) would sell the the service directly to
to the resident.

Sometimes the building would be connected to the service providers network
by fiber-optic cable. The fiber would be placed at an early stage of
construction. The newly formed housing cooperative would pay the full cost
of the cabling work as sign-up fees for the Internet service. The agreement
between the co-op and ISP would not allow the co-op to buy Internet service.
Instead it allowed the ISP to take over the internal wiring and monopolize
the network. The service provider was free to price the service as they
pleased. The co-op could not abandon the agreement as it meant loosing their
large sign-up fees.

This model did bring residents fast Internet access. It did not however
bring down the cost of access as the service was always priced at or above
the price of slower fixed access alternatives. The monthly fee for fast
Ethernet access in these houses is around ? 50 with little change in sight.

HomePNA

A new technology, HomePNA was introduced to in-house networks by
the Internet operator Jippii (now Saunalahti). Originally Home Phoneline
Networking (HomePNA) was marketed in the US as a way of building
home networks by utilizing the multiple existing phone sockets in the house.
In Asia the technology was adapted for ISP use with the introduction
HomePNA 1.1 switches.
http://www.homepna.org/products/#mdu

In an in-house HomePNA network a stack of HomePNA switches is placed in
the central telephone wiring closet of the building. Each apartment is
connected to one port on the switch using the same twisted pair that carries
telephone traffic to the apartment.

Internet connectivity is provided by one (or more) ADSL or G.SHDSL
connections.

Operator-run HomePNA networks reached their peak popularity by the end of
2003. In that year most landlords owning apartment blocks, including
"council housing", made agreements with ISPs to market HomePNA services to
tenants at a price of around EUR 35 a month.

The last year has seen a steady decline in popularity of ISP run HomePNA
networks.

 1. A sharp decline in ADSL prices and increase in speeds has made HomePNA
    service uncompetitive against ADSL and cable modem connections starting
    at EUR 19,50 a month.

 2. The business model is unworkable. An infrastructure like an in-house
    network needs "monopoly protection", not market competition. In the
    worst case, one housing cooperative might have two competing HomePNA
    networks installed in the same wiring closet, both networks providing
    service to 2 - 3 customers.

Also one problem is that often the operator providing HomePNA service is
also providing ADSL service in the same area. These operators are unwilling
to push HomePNA prices below ADSL prices.


Cooperative networks

In 2000 housing cooperatives in Finland started building their own HomePNA
networks. In this model the housing cooperative would own the networking
hardware and pay for the Internet connection.

In early networks only those residents interested in the fixed Internet
connection would take part in the costs. A subscription fee was set up and
collected monthly by the housing cooperative, along  with the maintenance
fee and any other extras for services like the weekly sauna or parking
space. The cost of hardware and installation was covered by the fee in about
two years.

In these early networks about 50% of residents were connected with monthly
fees at around EUR 7.

Some of the first networks were set up in the Helsinki neighborhood of
Maunula in an government initiated project:
http://www.sitra.fi/eng/index.asp?DirID=68&DocID=4248

Internet access to everyone

Newer networks have adopted a different model. All apartments are connected
to the network and Internet service is provided without any extra fee. At a
minimum Internet-service can be provided at around ? 1 per month with around
EUR 100 per apartment in initial investment costs.

Not having to connect and disconnect individual apartments greatly eases the
maintenance of the network.

In houses with free Internet access network usage has reached a level of 85%
of apartments.


Bandwidth-sharing problems

Early HomePNA networks suffered from bandwidth-sharing problems.
In an shared Internet connection bandwidth usage between different users
may differ by over one thousand fold. The heaviest traffic is caused by file
sharing and other p2p-programs.

Without any bandwidth limitations or priorization two or even one BitTorrent
user can disable a network and block net access to all neighbors. In an
asymmetric ADSL-connection saturation of the uplink will cause the free
capacity of the downlink to become unusable. Network latency (ping) grows
to over 1 second, practically freezing all other traffic.

ISP:s and housing cooperatives took very different approaches to solving the
problem:

In ISP-run networks the built in bandwidth limitation features of HomePNA
switches were taken into use. Per user bandwidth was throttled down to a
minuscule 128 or 256 kbps.

Cooperative networks wanted to provide each user the full capacity of the
network. Artificial restrictions were disliked. The solution was user
education. Network activists would monitor network traffic, advise neighbors
on proper usage of p2p-software and even temporarily disconnect users who
failed to follow the guidance.

Technical solutions

Luckily purely technical solutions have become available to the bandwidth
sharing problem in the form of traffic shapers. One useful alternative is
the FreeBSD-based firewall distribution m0n0wall with an easily configurable
traffic shaper:
http://www.m0n0.ch/wall/

A Finnish company, Staselog also produces a traffic shaper for cooperative
in-house networks:
http://www.staselog.fi/en/products/index.html

Functions of a traffic shaper:
  1.Delay outgoing traffic so the uplink is newer saturated.
  2.Prioritize interactive traffic.
  3.Recognize p2p-traffic and set to lowest priority.
  4.Give each user an equal share of the usable bandwidth.

Security

Security in an in-house network requires that users cannot communicate
directly through the LAN using local IP-addresses or LAN-protocols.
All traffic must pass through a router and be based on public IP-addresses.
The technique to achieve this is to use "port isolation" in the Ethernet and
HomePNA switches. This feature is available in all switches targeted for
the MDU-market.

In-house networks usually share one public IP-address among all users. The
NAPT router isolates  the house network from the Internet and provides a
built in firewall.

The future of HomePNA

With "Full Rate" ADSL connections at 8/1 Mbps becoming available to
consumers at a price of EUR 45 and to housing cooperatives at EUR 115  the
limited speed (1 Mbps) of HomePNA 1.1 has become a bottleneck.
To lock the key "heavy users" to the cooperative network faster speeds must
be available. Construction of new HomePNA-based networks now seems to have
come to a standstill.

HomePNA 2.0 at 10Mbps proved to be too prone to cross talk so no switches
are available. HomePNA 3.0 could provide a speed of 100Mbps but the switches
have yet to reach European markets.

At the same time the price of compact ADSL DSLAMs (switches) has dropped to
almost the same level as HomePNA switches, at around EUR 50 per subscriber.
The problem with ADSL is its ATM foundation, which causes unnecessary
configuration issues in an otherwise purely Ethernet-based network. VDSL
would provide better Ethernet compatibility and higher speeds, but the
standards are immature and hardware is incompatible.

Ethernet would provide the best alternative, but usually the wiring is
missing. Finnish housing cooperatives are now facing a tough technical
choice between rewiring for Ethernet and adapting ADSL or VDSL technology
for in-house networks.


Finnish national policy

The Finnish national "Broadband Strategy" emphasizes competition to the
detriment of  infrastructure. The aim is to utilize the existing coper base
of the telephone network to its fullest. In this model each user will have
an individual subscription with a profit driven telco.

Virtually no encouragement is given to cooperative networks or even in-house
networks.
http://www.laajakaistainfo.fi/english/index.php

The opposition, the "fiber party" is largely concentrated in the
Swedish-speaking districts of Ostrobotnia. These people believe in
the importance of infrastructure; fiber-optic Ethernet to every house!
http://www.seutuverkot.net (in Finnish)


Housing in Finland

Most Finns live in apartment blocks. Finland has the second highest
percentage of  apartments in Europe after Spain. Also, a large proportion of
Finns own their apartments. Most apartment houses are organized as housing
cooperatives. The first housing cooperatives were built in Finland around
1900.

     Some of the first Finnish Housing cooperatives are located in the
     Katajanokka neighborhood in Helsinki:
      - http://www.photofora.com/eugene/Jan2003/helsingfors03/index_18.htm
      - http://www.codeman.fi/photo/katajanokka.jpg

Finnish writers often translate the Finnish word "asunto-osakeyhti�" as
"housing company". The term "housing cooperative" is more accurate as the
form of incorporation of Finnish cooperatives is identical with those in the
US.  In fact, the housing cooperative model was brought to the United States
by Finnish immigrants.

     "The first true cooperative development in the United States was
      started in 1918 by a group of Finnish artisans-the Finnish Home
      Building Association in Brooklyn, New York. "
       - http://www.coophousing.org/HistoryofCo-ops.pdf
       - http://www.findarticles.com/p/articles/mi_m0254/is_4_59/ai_68704399


Vocabulary

Housing cooperative
  "Housing cooperatives are a form of homeownership where individuals own
   shares or memberships in a corporation that owns or controls the land and
   buildings that provide housing. The ownership of a share entitles one to
   occupy a unit within the cooperative."
   http://www.coophousing.org/glossary.shtml

Council housing
   (British term) Social housing owned by the city or municipality.

MDU
   Multi-Dwelling Unit

In-house network
   A LAN connecting apartments in an apartment block and providing Internet
   access

Internet connection sharing
   In English parlance "connection sharing" is often used to refer to
   sharing your Internet connection between multiple computers. In this
   text it refers to sharing one WAN connection and possibly one IPv4
   address between multiple subscribers.

Operator
   In the US often referred to as "carrier". A large telco offering
   telephone and ISP services.

ISP
   Anybody who provides Internet service to others is an Internet Service
   Provider. In this text ISP however refers to an "operator", "carrier" or
   telco offering Internet service.

Euro (EUR)
   The European Currency Unit, now rated at about US $1.32 to one Euro.

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