Building the Fibre Nation. Alberto Lotti Director Strategy, Solutions & Marketing Alcatel-Lucent Italy Cluster
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1 Building the Fibre Nation Alberto Lotti Director Strategy, Solutions & Marketing Alcatel-Lucent Italy Cluster
2 The starting point for FTTx: the bandwidth equation bit rate [Mb/s] FTTH > 75 Mbps VDSL Theor. max VDSL DSM L3 VDSL current ADSL2Plus ADSL HDTV 2 x 1 x loop length [m] Coverage Italian territory: 60% 80% Company confidential
3 GPON is established as reference for mass market Investments (CAPEX per subscriber) Operations (OPEX) CAPEX per Subscriber 2,500 P2P AE GPON 2,000-20% CO Power, space, ODF High Power Big Space High Power Small Space Low Power Small Space 1,500 1,000 ACTIVE OSP Power, space, ODF Passive Active Passive OSP Horizontal Feeder fiber 1 sub per 24 subs per 32 sub per 500 OSP Vertical RoW, ducts, aerial fiber fiber fiber 0 P2P GPON HOME CO consolidation 10 km - max 20k subs/co >>20km > 100k subs/co 20 km > 100k subs/co Case: 1Mio subs, 20% FTTH penetration GPON is the best option for mass-market FTTH Source: Alcatel-Lucent Fast Forward analysis Company confidential
4 Le soluzioni per l ultra larga banda oggi Tecnologie abilitanti: GPON Point-to-point fibre VDSL2 Caso per caso si sceglie di terminare la fibra dove conviene
5 The Fiber Nations are on the move Top BB countries end 07 (>2 Mio BB subs) FTTx home passed (% HH) 80% Japan Hong Kong South Korea 5Mio BB Subs FTTN VDSL 60% FTTBuilding FTTHome Tbd 40% Belgium USA Germany Switzerland Taiwan Sweden Turkey Poland Argentina Mexico Brazil Russia India 20% 0% 0% China 20% Denmark Canada Italy France Netherlands Australia Spain UK 40% 60% 80% 100% Source: Alcatel-Lucent analysis industry blend France includes FTTB from cable operator Broadband subscribers (% Households) Company confidential
6 The Real Problem Impact (2) Further pushing FTTH sustainable development advantage Contributions of different FTTH network deployment phases to climate change 4. Passive fiber network deployment 78% 3. Transport 0% 5. Network power consumption 6% 2. Active equipements production 8% 1. Cable and passive equipment production 7% 6. End of life 1% The environmental impact will be positive within less than 15 years The environmental savings are increased by 2.3x after 15 years i.e. 780 kg eq. CO 2 or the equivalent of a car traveling km /user/year Source: FTTH Council Europe, PriceWaterhouseCoopers Company confidential
7 Retail Market Segmentazione delle componenti di business delle NGAN Terminals Billing Call Centres Payback period 6-24 Month Telecom Services Content, IMS & IPTV application servers 3-5 Years Active Infra Investors Communication Networks Access Aggregation - Core 5-7 Year Passive Infra Investors Dark Fibre Power Supply Shelters Trenches Pipes Ducts Masts Sites Year Condivisione delle infrastrutture passive non replicabili
8 Adapting policy to market characteristics Network funding & sharing should vary according to geographical segmentation Proportionate Investment Market Driven Areas Risk Driven Areas Policy Driven Areas Private Sector Less civil More Density More civil Lower RoI Demand Aggregation Labeling Precabling Access to public infrastructure Public Sector Primary infrastructure Dark fibre Backhaul The % of risk increases the % of sharing required to meet the business case Urban & Business Suburban (residential & SME/SMI) Rural Low density 8
9 Very High Speed Strategy in France 24 April France to require apartments to come wired PARIS: The French government said Thursday that it planned to require builders to install fiberoptic cables in new apartment buildings to increase the introduction of fast broadband Internet. As part of a proposal to be voted on by Parliament "before the summer," the government will seek to make fiber-optic cabling a requirement for all construction projects of 25 or more apartments, said Luc Chatel, a government spokesman. The proposed law should allow all network operators access to buildings, Chatel said. Operators should agree among themselves whether and how to share local neighborhood switching nodes, and the government will leave it to French telecommunications regulator Arcep to deal with competition issues that go beyond building access, Chatel said.
10 Very High Speed Strategy in France
11 Our experiences around the world
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