Pat Sims, Principal Engineer, ADC

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1 Pat Sims, Principal Engineer, ADC

2 - RUS BIP Grant Program - NTIA BTOP Loan Program - Municipal BB Development - FCC Definition of Broadband Wireline Subscriber Saturation + Bundled Service Offerings + Usage Based and Value Added Services = New Revenue and ROI Opportunities. Regulation Revenue ROI Cost Competition - Industry Scaling - Vendor Competition - Product Standarization - Component Costs Decreasing - Voice Market Decreasing - Broadband Speeds Increasing - Bundled Service Options Common The Market Drivers combine in the removal of barriers, and make FTTH an attractive business case for all Service Providers

3 Business Case Reference Model» Have the cost model objectives changed? Defining Converged Services» What is service creation for the Service Provider? Bandwidth Needs Review» Have the bandwidth requirements changed and for who? Revenue and ROI» Have the revenue generating applications changed and what is the effect on the ROI?

4 Copper FTTN EFM Fiber Fiber WDM AWG BPON/GEPON/GPON/WDM PON Fiber Active Ethernet Fiber Fiber Fiber

5 In any procurement, cost pressure will no doubt influence the buying decision and behavior more so in today s challenging macroeconomic environment. Analyze True Costs for Network Deployments Cable + Hardware & Equipment Costs (CAPEX) Installation/Test Growth/Migration Costs (OPEX) Understand Design/Cost Relationships Homes per Serving Area Applications and Architectures Expected Subscriber Take Rates When looking at Revenue and the ROI, we need to understand the impact of the new revenue generated from services and applications and how they impact the real Return on Investment.

6 TelePhone TeleVision Computer Cell Phone Presence IP Centrex IP Trunking Long Distance Converged Billing VoIP Soft Switching Network Address Book Video Communications Residential Primary Line Presence VoIP on TV IPTV & VoD Messaging on TV Converged Billing Network Calendar Click to Dial on TV Phone Services on TV Network Address Book Video Communications Visual Voice Mail on TV What, Where, When, & How Presence TV on PC VoIP on PC Messaging on PC Converged Billing Network Calendar Mobile Phone on PC Network Address Book Video Communications Visual Voice Mail on PC Control TV D/PVR on PC Presence TV on Mobile VoIP on Mobile Converged Billing Network Calendar Messaging on Mobile Network Address Book Video Communications Visual Voice Mail on Mobile Control TV D/PVR on Mobile Multiple Screens For: Video Entertainment, Phone Calling, Video Calling & Messaging Single: Identity, Inbox, Address Book & Bill; Cross Devices With Presence

7 Appliance Television Personal Computer Telephone Service High Definition TV (MPEG2/4 3D) Pay TV Standard Definition TV (MPEG2/4) Interactive TV on Internet Video on Demand (VoD) Personal Video Recorder High Speed Internet (WEB Surfing) Interactive Gaming Video on PC Voice over IP (VoIP) Voice over DSL (VoDSL) Bandwidth 5-80 Mbps 3-6 Mbps Mbps Mbps 5-15 Mbps 1 10 Mbps Up to 2 Mbps 1 5 Mbps 4-12 Mbps 80 kbps - 5 Mbps kbps/ch ~ 100 Mbps

8 On-Line Gaming and Music over the past year Xbox Live continues to peak and has increased 40%* Itunes 8.0 continues to be the world most popular digital downloads* 3D, Holographic High-Definition, Super HDTV Television Telemedicine Personal Video Downloads/Uploads PhotoShop Creation 5 to 20 Mbps Increased Upload Speed Requirements of the Service Providers Video on the Web Movie Downloads Increased Download Speed Requirements of the Service Providers * Source - CE June 2009

9 Upstream Web Surfing Video Conferencing, Premises Surveillance SDTV VoD Telecommuting File Sharing, Home Video Sharing/Streaming Real Time SDTV Network PVR Multi-Player Gaming, Interactive Distance Learning Premises Web Hosting Telemedicine Large File Sharing HDTV VoD Downstream Network Hosted Applications & Storage NG 3D TV Mbps FTTH VDSL2 ADSL2+ Cable Modem

10 Peta Bytes / month A Peta Byte (PB) is a unit of information or computer storage equal to Giga Bytes. Today, Google processes >25 PB data/day. Web, , Data P2P Gaming Video Communication VoIP Internet Video to PC Internet Video to TV By 2012, the sum of all forms of video will exceed 90% of global consumer IP traffic Source : BNetzA, June 2009

11 * Fixed Rate Based on RBOC Service Bundle Pricing ** Usage Based Based on Monthly Data Rate Increase/Household Based on Monthly Video Rental/Household

12 Architectural and Topological Choices Driven By Initial and Targeted Take Rates Bandwidth Requirements and Needs Overbuild, Greenfield or Migration Focus Applications and the Service Creation The Critical Underpinnings of the Business Case Separation of the Existing Revenue Over New Revenue How Quickly does the SP Expect the Return on Investment The Design Must Take a Total Systems Approach Financial Impact on Business and Operations Management Upfront Cost, and Cost vs. Performance Value of the Solution Time & Speed to Market, Flexibility & Scalability, Quality, Reliability and Consistency

13 Questions?

14 THANK YOU

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