Fiber to the Home: Enabling Innovation & Growth. Stuart Elby, PhD Vice President -- Technology
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1 Fiber to the Home: Enabling Innovation & Growth Stuart Elby, PhD Vice President -- Technology
2 Communications Trends Access Bandwidth Consumption 4G 3G 2/2.5G 2 Infonetics, Alcatel-Lucent
3 Applications and Media Bandwidth Upstream Downstream 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; P2P HDTV VOD Next Gen HDTV Next Gen 3DTV FTTP HFC VDSL2 ADSL2+ ADSL Dial-Up Mbps 3
4 Fiber to the Premises IP Voice Data VOD Video RF QAM Central Office OLT (Optical Line Terminal) EDFA Optical Amplifier Optical Couplers (WDM) Future-Proof Outside Plant Passive Glass Terabits of Capacity Optical Splitter 1x32 Fiber Distribution Hub (FDH) Customer Premises (Optical Network Terminal) Upstream Services & Bandwidth Downstream Voice and 155 Mbps 1.2 Gbps (GPON) Voice, Data & 622 Mbps 2.5 Gbps (GPON) Broadcast Video (860 MHz equiv.) 1310 nm 1490 nm 1550 nm 4
5 FTTP Deployment Overlay Build Splitter Hub Green Field Build Circuit Switch OLT 5
6 FTTP Architectures for Multi Dwelling Units Fiber to the Living Unit Fiber to the Building SFU SFU Broadcast Video over Coax Interactive Video and Data over VDSL or Ethernet Basement Or Floor FDH FDH Common LEGEND Fiber Cable VDSL/Cat3 Coax Cable Optical Splitter 6
7 The Verizon Digital Home Three Key VZ Investments: CMS Customer Premises Management System BHR (Broadband Home Router): Robust network MoCA (Multimedia over Coax Alliance): Inexpensive installation; operates in 50 MHz channels between MHz. CMS: Remote management and configuration through standard protocol. Broadband Home Router (BHR) 7
8 Enabling Technologies Digital Signal Processors (DSP) Semiconductor Lasers Erbium Doped Fiber Amplifiers (EDFA) Passive Optical Components (WDM combiners, splitters, connectors) Bend Insensitive Optical Fiber Battery Technology
9 Business Rationale Some copper distribution areas require labor intensive rehab Outside plant active electronics have very high maintenance costs Aerial outside plant is less expensive to build than buried facilities Continuous Internet traffic growth of ~50% per year Allocated OLT Cost Capital Cost Structure of FTTH Cost Total Cost to Connect Construction Cost to Connect 9 Total Cost to Pass Construction Cost to Pass
10 Total Cost of Ownership Savings Fiber-to-the-Node Central Office F1 Copper Cable POTS F1 Fiber Cable Data & Video SAI Node Copper Cross Box DSLAM A Power POTS, Data & Video F2 Copper Cable Splitter Modem Fiber-to-the-Home POTS,Data & Video Splitter Cabinet Fiber Terminal Central Office F1 Fiber Cable Optical Splitter F2 Fiber Cable FTTH End-to to-end Savings totals 67% 10
11 FTTP Maintenance Costs Savings Fewer Reported Troubles in the Outside Plant (F1 & F2) The POTS & DSL Outside Plant NRR is more than 5 times higher than FiOS Voice & Data NRR Outside Plant 2005 YTD Combined DSL + POTS 1.05 FiOS NRR - All 0.20 When Troubles are Reported, dispatches occur less often DSL & POTS Average daily dispatched load rate is almost 2 times higher than FiOS FTTP network detects troubles and self heals Dispatch Out Rate 2005 YTD DSL & POTS 0.17% FiOS Voice & Data 0.09% 11
12 Deployment Status of FiOS (3Q09) (Millions) Penetration of homes open for sale % 28.5% 2 0 EOY2010 Target Homes Passed 3Q09 Homes Passed TV Subscribers Internet Subscribers 12
13 FiOS Architecture Today Long Haul Network SHE (Super Head End) IP Network/Internet Video Cache VoIP Softswitch Broadcast LAN VHO (Video Hub Office) Medium Haul Network Edge Router IP QAM & EDFA 13
14 FiOS Architecture Future Long Haul Network SHE (Super Head End) IP Network/Internet IMS IP Multimedia Subsystem Video Cache NG-PON 10Gbps Up & Down Broadcast LAN VHO (Video Hub Office) Medium Haul Network Edge Router Video Cache 14
15 IP + Linear Broadcast Set-Top Box merges IP channel with TV channel to create hybrid interactive experience. FiOS TV Widgets are small, Internet-enabled applications that run on a FiOS TV Set-Top Box. Widgets are written using the LUA scripting language. 15
16 Emerging Advertising Opportunities Dynamic VOD Ads Dynamically served pre and post-roll ads accompanying Free VOD content Interactive TV Ads EBIF-enabled nationally broadcasted TV ads with interactive capabilities Example: Philadelphia Hyper-Local Geo-targeted Ads zip code + 4 with better than the 60% accuracy of IP advertising Sponsored Widgets Verizon Developer Network to skin widgets 16
17 A Platform for Innovation Developers (Ring 1, 2, 3) Service Creation Content Management Content Providers Services Management API s IMS Centric Services Execution App s Enablers Example Enablers FiOS Broadband + Open Platform + Enablers = Delivering Innovation to Customers 17
18 r r Collaborative Intelligence VZ VAS Portal Mobile Handset Java VM (J2ME) Mobile Linux (LiMo) Internet VZ Home Gateway (BHR) EvDO, 4G Energy Mgmt Health care Home Security Media Sharing File File Backup NAS Java VM (OSGi) VZ VZ Connect PIM DECT/VoIP IMS Stack IMS-Enabled Verizon Network Network Java VM (J2ME) FiOS Web Camera Personal Storage Game Consoles VZ Home Network PC Operating System HDD recorder TV / STB Mobile Linux (LiMo) 18
19 Developer Website open to all 19
20 Service Genres Communications Media Access (Including Internet TV/Radio) Media Sharing Home / Business Security Home Automation Utility Services Distribution/Delivery Logistics Advertising Gaming N-Screen Telemedicine Your Companies will Shape the Services 20
21 Summary Fiber to the Home is the only technology to meet near term and long term fixed bandwidth demands without additional outside plant investment. We are evolving FiOS to continually enhance the user experience (bandwidth, video content choice and quality, services) We are opening our networks to accelerate service innovation 21
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