Challenges for Fibre-based Telecom Networks in Europe
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1 Challenges for Fibre-based Telecom Networks in Europe Alf Henryk Wulf, CEO Alcatel-Lucent Deutschland AG wik International Conference, March 23, 2009
2 Agenda 1. Characteristics of FTTB/H 2. Commercial Differences 3. Technology Strategy and Evolution 2 wik FTTB/H Technology March 2009 All Rights Reserved Alcatel-Lucent 2009
3 Characteristics of FTTB/H 3 wik FTTB/H Technology March 2009 All Rights Reserved Alcatel-Lucent 2009
4 From Best-Effort High-Speed Internet to Blended Multimedia Services Triple Play bundle VoIP IPTV Blended voice, video & data services Enhanced Internet Services today Near Future Services over the IP network are evolving from best-effort HSI to Enhanced HSI, VoIP and IPTV, with a blending of the services 4 wik FTTB/H Technology March 2009 All Rights Reserved Alcatel-Lucent 2009
5 Mass Market Shift from Broadcast TV to Personalized Entertainment Personalized, Multiscreen Entertainment Basic TV Service Personalized, Improved Quality TV Interactive TV Multiscreen Entertainment SDTV Linear TV VoD HDTV Multi-room PVR Pause Live TV Time Shift TV IP Comms on TV Targeted & Interactive ads Remote PVR Any media on any device User choice and control Digital home evolution Time Value drives loyalty and market share and there are a lot of moving parts 5 wik FTTB/H Technology March 2009 All Rights Reserved Alcatel-Lucent 2009
6 Long Term Bandwidth Evolution Peak BW Current BW Growth Rate 100 Mbps 24 Mbps 6 years Sustained BW 5-7 years 1.5 Mbps 6 Mbps 10x Long Term Trends (Infonetics) BW Life Cycles (Telecom Futures) Latest view also supported by (advertized) bandwidth of players in US and Japan Infonetics We are here! Global peak and average bandwidth have grown even faster than expected: 100Mbps is a reality! 6 wik FTTB/H Technology March 2009 All Rights Reserved Alcatel-Lucent 2009
7 Optimal mix of access technologies for 100% coverage Maximize CO investment with ADSL2+ and bonding Central Office Aggregation Network DSLAM ADSL OLT DSLAM/ OLT DSLAM/ OLT ADSL2+ Copper-centric Extend footprint with cost-effective Fiber-To-The-Node (FTTN) equipment VDSL2 Outdoor DSLAM Street Cabinet FTTN ADSL2+ Fiber-centric Unlimited reach and bandwidth Fiber To-The-Building (FTTB) Fiber-To-The-Home (FTTH) AE FTTH GPON LTE WiMAX LTE/ WiMAX as complementary access solution for low density areas and nomadic subscribers 7 wik FTTB/H Technology March 2009 All Rights Reserved Alcatel-Lucent 2009
8 FTTH Technologies Central Office Access Loop Home Point -to- Point IP More concentrated More distributed Ethernet switch Splicing Efficient Outside Plant Passive Outside Plant No remote powering Less maintenance, truck rolls, Cost-effective Fiber Feeder Active Ethernet IP Ethernet switch Ethernet switch Few fibers in feeder section Smaller duct sizes, Less RoW cost, Central office (CO) consolidation Best of Both Worlds GPON IP Passive Outside Plant CO scalability & Consol. (20+ km) PON OLT Optical splitter Fiber Cost & Management (P-to-MP) RoW = Right of Way P-to-MP = Point to Multi-Point 8 wik FTTB/H Technology March 2009 All Rights Reserved Alcatel-Lucent 2009
9 Commercial Differences Business case examples 9 wik FTTB/H Technology March 2009 All Rights Reserved Alcatel-Lucent 2009
10 Business Case example A Network length calculation Digging Cable length Fiber length Number active length (km) (km) (km) Sites Point -to- Point Muffle 2,4 km 3,7 km 809,2 km 1 Active Ethernet EthN-Switch 2,4 km 3,7 km 89,3 km 21 GPON Splitter 2,4 km 3,7 km 89,3 km 1 Remark: For all variants 1 fiber per access interface! 10 wik FTTB/H Technology March 2009 All Rights Reserved Alcatel-Lucent 2009
11 Business Case example B Results for Large City - CAPEX CAPEX CAPEX-Vergleich - Comparison Cost Kosten [in [ ] ] GPON AE P2P Technology chnologie POP Floor Space POP Optical Equipment OSP Horizontal OSP Vertical HOME POP Optical Equipment OSP Horizontal OSP Vertical HOME * No budgetary cost for Floor Space applied 11 wik FTTB/H Technology March 2009 All Rights Reserved Alcatel-Lucent 2009
12 Business Case example B Results for Large City - OPEX Kosten pro Jahr [ ] Cost [in ] OPEX OPEX-Vergleich - Comparison GPON AE P2P Technology Technologie Maintenance fibre cable Maintenance ducts Maintenance (PON, EN- Switch) Maintenance fibre cable Power consumption & AC Maintenance ducts Floor Space Maintenance (PON, EN- Switch) Power consumption & AC No budgetary cost for Floor Space applied 12 wik FTTB/H Technology March 2009 All Rights Reserved Alcatel-Lucent 2009
13 GPON compared to Point to Point Direct impact on Central Office spacing and powering GPON subs Central Office P2P subs Central Office 4 HW racks 1 Fiber rack () 1440 appearances 1 fiber = 32 users 24 Fiber racks 1440 appearances per rack 1 fiber = 1 user 16 HW racks 1K subs/rack PON PON PON PON SwitchSwitch Switch Switch Switch Switch Switch Switch Switch Switch Switch Switch SwitchSwitch SwitchSwitch Switch CO < 20 sqm watts CO > 100 sqm watts Note: 4 GPON & 48 ports P2P line cards 13 wik FTTB/H Technology March 2009 All Rights Reserved Alcatel-Lucent 2009
14 GPON compared to Point to Point in the context of permanent technology improvement [Mbps per subscribers] P2P GE NG PON 500 Fix GPON ADSL2 ADSL2+ P2P - FE VDSL2 HSPA+ WiMAX LTE WiMAX 4 1 ADSL GPRS UMTS HSPA Mobile wik FTTB/H Technology March 2009 All Rights Reserved Alcatel-Lucent 2009
15 Technology Strategy (of top carriers) and Evolution 15 wik FTTB/H Technology March 2009 All Rights Reserved Alcatel-Lucent 2009
16 Top carriers have defined their FTT strategy Public announcements in top BB countries epon / GPON FTTN N/A or TBD Source: public announcements P2P / AE FTTAmplifier for HFC 70% top carriers: GPON 50% countries with at least two operators with GPON GPON in volumes initially in the USA Countries Australia Belgium China Denmark France Germany Hong Kong Iceland Ireland Italy Japan Korea New Zealand Norway Singapore Spain Sweden Switzerland The Netherlands UK USA and Canada Incumbent Alternative Munis/util. Cable Cable Cable Cable Cable Cable Cable 16 wik FTTB/H Technology March 2009 All Rights Reserved Alcatel-Lucent 2009
17 FTTx Evolution - Subscribers Worldwide CAGR % 100% 150% FTTx Subs WW [M] PON in Asia VDSL PON outside Asia As % of fixed BB subscribers ,4% 4,7% 6,5% 9,5% 13,6% P2P Source: Infonetics / Analyse Alcatel-Lucent PON in North America and EMAI showing strong size and highest growth 17 wik FTTB/H Technology March 2009 All Rights Reserved Alcatel-Lucent 2009
18 Backup 18 wik FTTB/H Technology March 2009 All Rights Reserved Alcatel-Lucent 2009
19 GPON evolution : It is all about Capacity, Reach & Split, and Operational Excellence 10 Gb/s GPON Approximately 2011/2012 Extended 10 Gb/s PON More bandwidth for FTTB and backhaul 10 Gb/s RE Increased split ratio More bandwidth and symmetry per subscriber 2.5 Gb/s GPON B+ Today GPON C RE Extended GPON 2009 Reach 10km 20 km 60 km Split Less dense areas addressed and central office consolidation 19 wik FTTB/H Technology March 2009 All Rights Reserved Alcatel-Lucent 2009
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