The Convergence of GPON and the Connected Home

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1 The Convergence of GPON and the Connected Home Zhone offers a complete GPON solution that addresses the typical roadblocks to FTTH and video multi-play services. GPON and Triple Play Go Hand-in-Hand For existing residential communities, laying fiber all the way to the premises involves major construction as well as investment. GPON (Gigabit Passive Optical Network) is currently considered the most economic technology for FTTH (Fiber to the Home), since it supports up to 64 passive splits, optimizing the cost of the optical transceivers at the OLT, coupled with the capability to deliver 2.5 Gbps downstream and 1.25 Gbps upstream bandwidth for new services. Despite the technical advances, which standards-based GPON offers, the initial investment is seldom justified for the delivery of just the basic POTS ( Plain Old Telephone Service ) and Internet data services already provided over copper with DSL. GPON is closely coupled to triple play services, where the inclusion of IPTV or RF video service yields a new revenue stream from which the business case for the FTTH CapEx is justified. Video entertainment services have evolved rapidly over the past few years from analog or digital broadcast services to enhanced high-definition (HDTV) broadcast services with new on-demand and interactive capabilities. Although new compression standards like MPEG-4 AVC lower video bandwidth per stream by one-half that of MPEG-2, increased channel offerings combined with the growing numbers of HD televisions per home are actually pushing overall bandwidth demand up. Several years ago IPTV plus internet access services typically required Mbps per household, for service to two or three TVs. Today, most service providers expect to deliver HD to three to five TVs with faster Internet speeds for video downloading and gaming. Many service providers now believe the required bandwidth per home is reaching Mbps, exceeding the capabilities of DSL on most copper lines. These trends in broadband service have many analysts and service providers predicting that as much as 100 Mbps will be required per home within the next 10 years.

2 Zhone has thoroughly analyzed the problems that service providers face in FTTH deployment, as well as the issues of in-home wiring, based on actual deployment experience. Zhone set about to develop a complete GPON solution that addresses the typical roadblocks to FTTH and video multi-play services. Zhone identified solutions to three keys areas that were typically roadblocks to FTTH and triple play deployment: first, an elegant power solution for premises equipment; second, technology to eliminate the need to rewire inside the home for service; and third, management intelligence to enable comprehensive monitoring and diagnostics remotely. Zhone s znid GPON ONT The result is a new and innovative approach to GPON and triple play, combining fiber ONT (Optical Network Terminal) and home gateway functionality in a single unit, with a number of features specifically designed to make installation easier and less time consuming. As an intelligent ONT, Zhone s znid (Zhone Network Interface Device) is the first product of its kind to meet both the mechanical needs for a fiber ONT and the home networking needs of triple play services. The znid provides network intelligence with integrated, advanced IP functionality and also represents a more intelligent way to deploy and deliver services. In addition to IPTV, the MALC-OLT and znid GPON system supports RF video as an overlay as an option for those service providers with existing cable head ends not yet offering IPTV. Other service enhancements include a Remote Broadband Access (RBA) port on the znid that allows a subscriber to use Web access to VPN securely into their home network to upload or download. This represents a feature enhancement from which a service provider can build revenues incrementally. Fiber ONT Installation at the Home GPON is usually deployed in one of two ways: on a greenfield basis in a new residential development; or in a phased construction process, replacing or overbuilding copper in an existing neighborhood. In either case, the actual installation process involves physical installation of fiber and NID at the home, followed later by the process of actual service turn-up. In most cases, these two steps involve separate work crews, as fiber installation and service turn-up are typically performed

3 by separate technicians. Service turn-up may occur much later than the fiber installation, scheduled only as homes are occupied, as service is ordered, or when an entire market area is ready for cutover. Fiber tray and cover Electronics tray with heat sink Zhone worked closely with service providers to analyze and improve field installation practices. We learned that the fiber installation process typically involves two distinct physical components: a fiber tray and NID for physical termination, and an adjacent electronics and power NID for connecting service to the premises. To simplify and reduce deployment costs, the znid is designed as a two-piece weatherproof enclosure, with separate fiber and electronics trays that fit together as a single unit. The ONT enclosure and fiber tray are mounted on the home during fiber installation, then the electronics tray can be installed separately at service turn-up. This allows the service installer to rapidly install the electronics tray without touching the fiber connection. If electronics are left unpowered, there is a high risk of damage from moisture that accumulates. The risk of damage to the relatively valuable electronics element at construction sites or unoccupied houses is completely eliminated as well. The znid is composed of modular elements that mount as a single unit to the outside of the home. An interior locking door secures the electronics tray, preventing subscriber access to the service provider interfaces, but allowing subscriber access to external service terminals. The electronics are mounted on a specially designed aluminum heat sink that ensures reliable operation, even in extreme temperatures. Many fiber ONTs use an inexpensive plastic enclosure that does not adequately dissipate heat, leading to frequent failures or shortened service life for the ONT. Electronics tray and fiber tray ONT Powering at the Side of the Home Powering FTTH electronics at the premises has been one of the largest challenges to fiber deployment. Today, the most common means of providing power to a GPON ONT is to install new wire from the ONT to a DC UPS (Uninterruptible Power Supply) that plugs into an AC outlet in the garage or inside the home. In most cases the installer must drill a large hole through an exterior wall of the building and pull a thick, 7-pair power cable through to connect the ONT to the UPS. This process takes time, while drilling holes through exterior walls creates potential liability risks and may be disconcerting to the home owner. Figure 1: Physical design of two-piece znid

4 With the vast majority of residences already equipped with at least 2 phone lines, Zhone saw the opportunity to leverage one of those lines to power the znid. Like most ONTs, the znid uses a UPS (with optional battery back up) installed inside the dwelling. However, in lieu of running a new power cable from the znid through a wall, the UPS is connected to the phone line inside the house, then the znid is connected to the same phone line at the service provider NID, on the outside of the house. This method provides power to the znid, outside the house, without drilling through walls or requiring lengthy installation. Figure 2: znid powering and battery backup

5 An alternative power option for the znid employs an induction ring connected to an AC electricity meter, performing all powering externally to the residence. If there is no access to spare phone lines, the installation technician may also use plain phone line wire to connect to the UPS. Any hole required would be much smaller than that required for the typical 7-wire cable option. HPNA converter for coax or telephone line Service Distribution Inside the Home One of the first hurdles IPTV faced in early deployments was the distribution of services inside the home. Using Ethernet to deliver services to set-top boxes and PCs, IPTV required rewiring each home with new Category 5 Ethernet cable from the modem or ONT to each television and PC location. Service providers have reported, and it is well-documented, that a typical IPTV triple play installation to three TVs in a home takes six to eight hours for an installer. Compounding the problem is training, since most service provider installers are unaccustomed to installing Ethernet cable in subscriber homes. The introduction of multi-stream (multiple decoder) residential gateway devices partly addressed the installation problem, as they allowed inhome coax to be re-used from the gateway. However, since this type of gateway must reside next to a main TV, new wiring is still required to the gateway from outside the home, then back again to the cable NID. Installation time is reduced by 50%, yet can still be significant. In addition to the amount of time and labor involved with rewiring home for triple play, the traditional installation procedure raises Quality of Experience (QoE) issues with the subscriber. It meant having to take a day off from work to be at home, coupled with disruptive drilling through walls and installers crawling through attics and crawl spaces. Overall, the entire process is both costly and customer-unfriendly. FTTH deployments have thus far not fared much better. One major service provider reports that the average home installation takes six to eight hours and still requires running new Ethernet cabling. If FTTH and triple play are to succeed, a better solution is needed requiring no new wires!

6 The Zhone znid incorporates HomePNA3 (HPNA3), delivering Ethernet at up to 100 Mbps over either coax or standard phone lines. The design File name: zti-ap-solfocus_fig4_rev2.ai of the znid allows either or both coax and phone lines to be used, with Last revision: full bandwidth available on each line. This provides a great deal of flexibility to the service provider, taking advantage of whichever wiring is most Diagram type: Application Note - Solutions Focus accessible in the home to connect services. The available wiring can be used for IPTV, PC connectivity, or POTS/VoIP. HPNA3 enables up to 100 Mbps over both the phone line and coax in the home. znid phone line DC UPS HPNA and POTS over phone line PC POTS phone IP phone IP STB HPNA over Coax IP STB PC IP STB Figure 3: HPNA3 Ethernet over coax or phone lines from znid Many vendors offer HPNA3 only over coax, under the assumption that TVs are already connected in the home via coax. There are, however, many situations where coax may not be available, including older homes and markets that have never had cable TV. Even in homes with coax, the flexibility of using phone lines for video allows subscribers to easily move TVs without installing new coax, increasing their overall satisfaction and reducing costs. The ability to choose either phone line outlets or coax outlets with HPNA3 means that a TV (or PC) can connect using whichever is available and have the same bandwidth for service. By using a small HPNA3 adaptor on the coax phone line, no new wiring is required in the vast majority of homes.

7 HPNA3 is one of several Ethernet-over-home wiring technologies available. Zhone chose to incorporate HPNA3 into the znid because of its quasi-standardization for IPTV, with many IP set top vendors such as Motorola, Scientific-Atlanta and Amino offering HPNA3 integrated into their products. As the technology becomes integrated into more CPE devices, the need to install a line adaptor in the home will be eliminated. Many IP set top boxes have already HPN3 integrated. The znid is usually installed proximity to the service provider phone NID and cable NID on the side of the home. This makes it easy to simply connect the znid to the phone and coax NIDs with short cables outside the home, thereby providing HPNA3 Ethernet over existing wiring. What, then, if the service provider needs to install Category 5 Ethernet wiring or additional phone lines without using HPNA3? There are cases where a specific residence, particularly in some international markets, would not necessarily benefit from coax or phone line re-use. The znid also provides the traditional connections for in-home service distribution. Three 10/100 RJ-45 data ports are provided, along with two twisted pair phone line ports. Status LEDs RJ-45 ports Power Local voice test Subscriber telephone terminals HPNA over phone (line no. 1) RF Video / HPNA over Coax Figure 4: znid subscriber ports and connections

8 Installation cost savings analysis Outside home install and test In-home cabling and installation Labor costs per home Cable & materials per home Electrician/powering Traditional ONT with CAT 5 Cable Only Zhone s znid ONT with HPNA3 over coax and phone line 2.5 hours 1 hour 4.5 hours 0.5 hours znid Advantage Reduced installation time No drilling / disruption to residents $400 $100 Single, integrated unit $200 $140 $100 Total cost per home $700 $240 $0 (not required) Reuse existing coax and phone lines No electrician required Savings per home with znid $460 Figure 5: Installation cost savings analysis The physical and mechanical design of the znid, coupled with the use of HPNA3 over coax or phone lines, and the use of a phone line for power, combine to significantly reduce the cost the cost and labor required per installation. According to much-publicized industry reports of actual service provider IPTV deployments, the cost of installation per home currently averages $700 (US) or more. The znid can reduce these costs by an average of $460. Minimizing Operational Costs for Converged Services Converged services can expose service providers to significant operational costs, for example, if a technician is dispatched every time a subscriber requests assistance. The use of set-top boxes for IPTV, in particular, extends the service provider s responsibility across the home network as well as up into the higher layer network protocols that control the services. Therefore, service management and diagnostic capabilities must extend across the home network.

9 Zhone has designed the znid to address both the service provider and subscribers needs for on-going service quality and support. The znid supports TR-69 CPE WAN management protocol, the worldwide standard for remote, centralized management and provisioning of DSL CPE. Service providers can use their existing servers and TR-69 software to remotely perform diagnostics, provisioning and software upgrades on the znid. The znid s management features can reduce costly truck rolls for service repair by as much as 50%. The znid provides a number of enhanced IP features to further assure service delivery and expand diagnostic capabilities. These include IGMP performance statistics, environmental reporting, and statistics on all IP connections. Beyond normal IP 802.1Q and 802.1p QoS and CoS, Zhone incorporates its enhanced traffic management, service classification and service awareness capabilities at layer 3 and layer 4 to assure performance for all services. The znid also includes features such as parental controls via IP addressing, access control to prevent premium program piracy, and VPN/firewall capabilities. These advanced management capabilities enable remote trouble shooting and diagnostics that can reduce service calls and truck rolls by 50% or more over traditional non-intelligent products when used in triple play deployments. And when a truck roll is necessary, the technician will often have a much better understanding of the situation, rather than resorting to trial-and-error trouble shooting at the customer premises. Scaling Deployment and Reducing Time-To-Revenues Not only is there a significant installed-cost issue with lengthy home installations, there are major revenue implications as well. If, as has been the case, it takes one installer a full day per home for installation, scaling the deployment over a full service territory requires large numbers of installers working over an extended period of time. This affects the ROI (Return on Investment) as well as the ability to compete for subscribers. Many service providers simply don t have sufficient installation resources to ramp up deployment effectively.

10 The ease of deployment of the znid provides a positive impact on ROI and time-to-revenues by enabling each installer to complete 3 to 4 installations per day. The more subscribers in service and the sooner service is rolled out, the shorter the time-to-revenues and faster return on investment. Conclusion: It Really Is About Service The decision to deploy GPON for FTTH is driven by the services that fiber enables, with converged, video-centric triple play services the primary motivation for most service providers. These converged, highbandwidth services require higher levels of management than traditional services. The subscriber s Quality of Experience (QoE), which translate directly to subscriber satisfaction and retention, will hinge on how well the service provider delivers high quality multi-play services. The service provider will ultimately decide its FTTH migration strategy. FTTH using GPON is more than a simple technology decision, it can involve a re-architecture of the entire network as well. Once the decision to deploy GPON is made, Zhone s MALC-OLT access platform and znid intelligent ONT will help reduce installation costs and time-to-service. The combination of scalability, ease of installation, and design for service assurance brings added value to any service provider looking to deploy fiber to the home., Zhone Way 7001 Oakport Street Oakland, CA phone For more information about Zhone and its products, please visit the Zhone Web site at or [email protected] Zhone, the Zhone logo, and all Zhone product names are trademarks of, Inc. Other brand and product names are trademarks of their respective holders. Specifications, products, and/or product names are all subject to change without notice. Copyright 2006, Inc. All rights reserved. GPON-SOL_AP_0707 0