Perspective on Broadband Access Evolution

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1 Perspective on Broadband Access Evolution Jean-Pierre Lartigue Access Network Division October 2004

2 The path towards user-centric broadband services New Services Adoption User-Centric Broadband Services BB growth is fueled by Multiple New Connectivity Services Broadband Services DSL, WiFi, 3G, PC, TV One service, any broadband, any device > Service creation From high-speed Internet to video, VoIP and more > Geographical expansion Mobile voice, LAN, Internet, PC 12% WW penetration today

3 Universal Broadband Access Challenges Sustained growth & scale Reduce OPEX (network management) Mass market systems An access to all services Large-scale video over DSL VoIP in all access nodes Combo voice/dsl card Business services Universal Broadband Access Wireline Wireless Satellite Mobile Service-Aware Access Access node as first gating point Distributed service intelligence IP & Ethernet, the convergence layer Service to everyone Deliver 100% coverage (remotes, FTTU, Wimax, Satelitte) Cost-effective reach (management, aggregation)

4 Deliver 100% coverage Satellite Buildings / MDUs CO New Location for Electronics Existing Copper X-connect Apartments Back-bone Homes Curb / MDU basement FTTArea FTTCabinet/campus FTTx FTTCurb/MDU Wireless FTTHome/apartment

5 1- FTTx: Manage the coverage trade-off Loop length & service constraints drive fiber & remotes Alternative deployment strategies Technology Km from CO Mbits Western Europe Central & East Europe North America Korea,Japan,PAC China RoAPAC, Taiwan MEA,India LAM VDSL2 ADSL2plus ADSL READSL 0, Over to 15 5 to % 56% 78% 97% 13% 52% 75% 97% 7% 14% 26% 62% 13% 54% 78% 98% 10% 40% 71% 95% 13% 51% 74% 96% 5% 20% 37% 74% 13% 53% 77% 97% Initial first investment FTTCab ADSL Infrastructure driven & Service Leapfrog FTTArea Deep Fiber (FTTU, FTTN) FTTCab Service driven Time Challenges: Remotes, Fibre reach, powering, rightsof-way, civil work, operations

6 1- FTTx: Key Parameters for deployment choices Number of subscribers For central office or cabinet Service offering & uniformity CO 6 Mbit/s 4 Mbit/s 2 Mbit/s 1 Mbit/s (when fed from CO) Type of uplink: copper/fiber fiber,, capacity Power & Existing civil work Environmental conditions Size limits Stopgap solution or Evolutionary path

7 1- FTTx: Capital Expenditure comparison Scenarios sizing Relative initial first cost /subscriber FTT Exchange FTT Area FTT Cab FTTH # Nodes per CO area 1 (in CO) k (1 per home) Bandwidth (Mbps) Note : Hardware cost = Cabinet + Electronics + ASAM equipment Cabinet Installation cost = Installation+Commissioning+Easements Fiber Cost = Feeder fiber + distribution fiber Relative cost TOTAL COST 1 3x 6x 13x 14,00 CAPEX 12,00 10,00 8,00 6,00 4,00 2,00 0,00 CO FTTArea FTT Cab FTTH Fibre Costs 0,0 1,6 2,4 12,6 Cabinet 0,2 0,4 1,5 0,0 Installation cost Hardware costs 0,8 1,0 1,8 0,4 xdsl remote for short loop /quality copper FTTU/PON for greenfield or or bad loop quality Greenfield

8 2- Remote Areas: Access Solutions 2 Way SAT WLAN (SAT) (< 20 subs./site) (20<x< 50 subs./site) Wireless/WIMAX (100>x>20 subs./site) < 15 km x < 5 km Aggregation CO DSLAM x x Remote DSLAM (> 100 subs. / site) < 5 km

9 2- Remote Areas: 2006 End to End Cost Comparison Micro village Average Large Village # connected users/density Backhauling distance (km) x2 Urban DSL Ref. Price E2E WiMAX or DSL (WiMAX) E2E 2way Satellite x4 x2,5... DSL (µwave) x3 DSL (Fibre-with light civil works) x1,5 x2 x4 x4 DSL/WiMAX (Satellite) Note: Access technology (Backhaul)

10 Conclusion: anticipate 100% coverage & triple play > High Density Rural Areas & Urban Areas (+50 users): FTTx ADSL, the most competitive solution xdsl remote for short loop /quality copper FTTU/PON for greenfield or bad loop quality > Medium Density Rural Area (20-50 users): WiMAX, WiMAX + DSL, FTTx Reasonable investment costs (2-3 times that of urban ADSL) Good SME & residential solution but limited interactive video services with WiMAX > Very sparsely populated Areas (less 20 users): Satellites Remote businesses as first targets Interactive video obtained in combination with satellite broadcast TV

11 Thank you

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