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Boom In Multi-Tenant Telecom Systems Can Benefit Both User and Developer.

For the past year or so, it's been virtually impossible not to encounter the term tenant sharing or shared-use facilities. Basically it's where the building owner installs a central switch that is shared by all tenants, with the primary benefit being that even smaller offices can take advantage of newer, more-sophisticated telecommunications technologies than if they were to install their own, smaller system. Another aspect is where a company finds itself with excess capacity on its system--whether its own PBX or even its network--and offers this capacity for sale to others. For the large corporation with widely scattered smaller regional and local offices, it can mean hooking those offices into the corporate network at far less expense than installing individual voice/data switches.

This year's TeleCommunications Assoication (TCA) conference in San Diego--just getting underway as this issue comes off the press and is being air-freighted for distribution there--will offer two sessions to look at the relatively new phenomenon.

One session, on Thursday at 3:30 pm, will focus on "Resale and Tenant Services." Lew Malouf of InteCom will discuss the opportunities that exist for building owners and tenants in the area of telephone service provisioning. He'll cover how to plan for the implementation of such services and discuss some of the disadvantages for both parties, as well. The session is intended for managers and engineers who have responsibilities for multiple offices and major facilities.

The other session, "Shared Used and Resale of Corporate Networks," at 8:30 am on Wednesday, will have Jeremy Van Pelt of Honeywell's Action Communication operation cover the subject from the perspective of individuals responsible for the planning and management of corporate long-distance networks. Regulatory constraints and considerations on resale will be discussed, as well as the financial implications and responsibilities. Also being reviewed are current experiences of some companies that are reselling network capacity to the public or employees.

Commercial real estate developers, in particular, have been quick to realize the potential in being a building's "telephone company." A number of them have hooked up with existing telecommunications equipment and service suppliers to avoid a long learning curve.

That potential is significant. donald Schlosser of Arthur D. Little, the Cambridge, Massachusetts-based management and technology consulting firm, sees telecommunications equipment pre-installed in commercial office buildings ringing up perhaps $1 billion in annual domestic sales within five years. He says that equipment sales in support of these projects are likely to exceed $300 million by the end of this year alone. Schlosser, a specialist in telecommunications and private networks, believes that sales could grow by as much as 25 percent per year over the next five to 10 years.

The defvelopers' goal, he explains, is to enhance their buildings by offering tenants the shared use of PBXs; telephone wiring, installation and maintenance; discount long-distance service; office automation systems; and high-speed intraoffice and interoffice communications links suitable for data and videoconferencing. "With these features available to them when they move in, tenants have instant access to services, greater flexibility, lower costs and fewer installation and maintenance headaches," he says.

Schlosser points out that developers are participating in these projects by contracting for telecommunications services, entering into joint ventures with telecommunications service companies or establishing their own dedicated subsidiaries.

Despite a recent flurry of shared tenant telecommunications plans, schlosser cautions that it remains to be seen whether tenants will opt for the vital telecommunications components selected by landlords. "Since most projects are still in the planning stage, it is too early to determine which of the many different telecommunications and office automation options will be acceptabled to tenants, or for that matter, profitable," he says. "Careful systems and service design, which takes into account observed tenant demand patterns, will be one of the keys to success."

One of the largest such efforts to date is Olympia Net, a $100-million joint venture between Olympia and York Equity Corporation of Toronto and United Telecommunication. It will be managed by United Business Communications, a subsidiary formed by United Telecom to provide enhanced services to real estate developers. It will provide shared tenant and private network services, linked by satellite, in office parks and buildings throughout the United States, Canada and Europe. Among its features are centralized management, distributed PBX architecture, traffic engineering, low and high-speed data transmission and bulk purchase of long-distance services. Subscribers will also save on space, electrical and air-conditioning requirements because OlympiaNet houses the systems's switches.

Satellite capacity to support intercity communications for the network will be provided by United Telecom's Isacommn subsidiary. Uninet, United's packet-switching subsidiary, will provide a wide range of data communication services. Video-conferencing rooms will link Isacomm's nationwide and international teleconferencing network currently being implemented. More than 40 major US cities are expected to be included in the network by mid-1985, with access to London and Paris this year

Another large project is LinCom, formed by Lincoln Property Company of Dallas--the second largest US-based commercial developer--to serve buildings in more than 37 cities by the end of this year. LinCom purchasing more than $50 million worth of telecommunications equipment from InteCom, the allen, Texas manufacturer of Integrated Business Exchange (IBX) systems. The purchase agreement initially focuses on 17 commercial buildings with more than six million square feet of space. Buildings are located in Dallas, Fort Worth, New Orleans, atlanta, Tampa, Orlando, Miami and Chicago. PBXs Have Partitioning Capability

The first jof LinCom's systems was installed earlier this year at Lincoln Plaza in Dallas. The IBX system is distributed throughout the 45-story building, and is designed to serve 4800 stations. An extension of the IBX, called a remote switching partition (RSP), is at Union Bank Tower. The IBX, as some of the other newer-generation PBXs, is designed to be partitioned for individual tenant privacy and security. Partitioning of the IBX software and control functions into separate systems for each tenant company permits LinCom to tailor the system to meet the specific needs of each tenant.

Early this year, InteCom also signed a $100-million multi-tenant paurchase agreement to supply IBX systems to Isacomm, as part of the United business Communications plans mentioned earlier. According to InteCom's Parker Ladd, "Small businesses with as few as five employees can take advantage of the advanced features and benefits of the IBX system."

InteCom also rang up a $25-million contract last May with Doric Development. Though joint-venture arrangement with Pacific Telecom, Doric will provide IBX-T systems for Harbor Bay, a 425-acre, high-tech business park in the san Francisco Bay area. Doric and Pacific Telecom (a subsidiary of Pacific Power & Light) have formed two communications companies, Harbor Bay Telecommunications (HBT) and Bay Area Teleport (BAT). HBT is constructing a full-service communciations network for Harbor Bay, while BAT will provide regional microwave distribution of voice and data and satellite access for interstate and international communications at the Harbor Bay Business Park in Alameda. (For a look at the growing teleport phenomenon, see story beginning on page 93 of this issue.)

Another major partnership formed earlier this year was between Ameritech and Satellite Business Systems. Under the agreement, Ameritech Communications will supply SBS Real Estate Communications (RealCom) with $100 million worth of telecommunications equipment, and will install, maintain and administer the equipment at an additional cost of $80 million. RealCom will provide tenant service within various developments, including the National Press Building and National Place Building, Both in Washington, DC, and in the 333 West Wacker Drive Building in Chicago.

RealCom-Ameritech are also bringing tenant services to Urban Investment and Development Company's 900 North Michigan Avenue project in Chicago, as well as to other planned projects of Urban, with which RealCom has a national agreement.

Pacific Bell has also entered the "intelligent building" market with the signing of an agreement to provide the switching services for a multi-tenant telecommunications system in a large office complex under construction in Walnut Creek about 25 miles east of San Francisco. The Pacific Telesis Group company will provide the switching services for the 197,000-square-foot Growers Square complex being built by the Pacific RIM Development Corporation of San Ramon (formerly WR Grace Development). The building will have the capability for providing message-center service, electronic mail, word processing, teleconferencing, facsimile transmission, telecommuting and other voice, data and video services.

Milwaukee-based Johnson Controls recently was selected to manage the integrated voice and data telecommunications and office automation system at One Financial Place in downtown Chicago. As the managing partner in Financial Place Communications Company--a joint venture between Johnson Controls, Financial Place Corporation and the Midwest Stock Exchange, a major tenant--Johnson is providing tenant services along with the building automation system and is marketing telephone, data processing and related telecom services. Johnson controls is supplying a JC/85 building-automation system interfaced to the telecommunications system, offering the capability for fire safety, security, lighting control and energy management.

The private telephone system, an InteCom IBX S/80, will provide reduced-cost long-distance calls and other enhanced services. Tenants can increase their information management capabilities with access to the building's mainframe computer. A library of management systems and data will be available for any tenant's workstations and computers. Data transmission will be provided through the IBX S/80. The mainframe computer is a DEC VAX 11/785. Information-processing capabilities will include statistical analysis, calendar management, intraoffice eletronic mail and phone, word processing, data-base management, business graphics, electronic filing, decision support, electronic spreadsheets and customized software services. Other tenant services will include order processing and monitoring, facsimile transmission, telex, high-speed letter printers, graphic plotters and access to a wide range of financial data-base systems.

Another large project is being built in Herndon, Virginia. The Renaissance Centre office building and hotel is to be completed in mid-1985, with the two buildings containing an integrated facilities management system prepared by Honeywell. Located within Renaissance Park at Dulles, the 170-acre business park will include the Hallmark Building, a 300,000-square office building, and the ramada Renaissance, a hotel, conference center and health and fitness center. The facilities-management system will automate the energy management, fire and security, lighting, information-processing and telecommunications functions of the two buildings over a facility-wide data network. The system will be a Honeywell Deltaplex 1003 digital voice/data PBX, building management will use a Honeywell Delta 5200 system, and information management will be handled by a Honeywell DPS 6/75 computer.

One of the most recently announced projects is the Kensington Galleria in Tulsa. It includes the Kensington Office Tower, a 10-story, 400-room Tower Sheraton Kensington and 70-store sheraton Kensington shopping mall. The telecommunications system, to be installed by Centel Business Systems, will provide all service and equipment, including long distance, to approximately 90 percent of tenants in the office tower, 100 percent of the service to the hotel and about 90 percent of the merchants in the shopping mall. The tenant-sharing system includes a Rolm CBX-M in the hotel connected by tie lines to a Rolm CBX-VL in the office tower, which controls all long-distance calls. System features include least-cost routing, call-detail recording for charge-back, and redundant and eight-hour battery backup. It also includes a property-management system in the hotel for room-management control.

"The average tenant today is simply bewildered by all the options that various vendors are offering," observes Bernie Bishop, president of Electronic Office Centers of America, a Schaumburg, Illinois-based firm that specializes in the design of "smart" buildings. (The One Financial Place in Chicago, mentioned earlier, is one of EOCA's projects.) "He may have a dozen long-distance telephone services knocking at the door. Then multiply that all by the other individual vendors selling all the various other elements in a total communications package. The building owner who already has everything in place has a decided advantage in the leasing market."

It would seem that the tenant does, too.
COPYRIGHT 1984 Nelson Publishing
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Publication:Communications News
Date:Oct 1, 1984
Previous Article:Long-Distance Is Discounted for Tenants of New York City's World Trade Center.
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