Next Generation Access - a Strategy for Volume Deployment



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Next Generation Access - a Strategy for Volume Deployment British Computer Society 9 th March 2011 Simon Fisher Principal consultant Strategic Network Design

Content Openreach and the UK supply chain Meeting the challenges of volume deployment - Active Line Access and the Mixed Economy strategy Generic Ethernet Access and the enabling architectures Future technologies

The Copper Access Network Broadband Enabler or Bottleneck? Local Exchange Customer Premises Exchange Equipment Main Distribution Frame PCP Cabinet Overhead DP Joint Cable Segment Dropwire Network Termination Underground DP M side (av. 1.8km) D side (av. 500m) Final Drop (av. 30m) UK Network build statistics :- 5,581 Exchanges 85,450 PCPs 4,300,000 DPs 4,781,632 Joint boxes 210,510 Manholes 59,000,000 Metallic pairs 32,000,000 Working lines 121,207,396 Total pair km 2.3km Average loop length 3

Exchange Based ADSL and ADSL2+ Performance Model (GB Model, 50% Cable Fill) 100% Openreach approved rate coverage for exchange based ADSL1 as penetration moves to 50% of cable pairs 100% Openreach approved rate coverage for exchange based ADSL2+ as penetration moves to 50% of cable pairs 90% 80% Exchange based loss estimate 90% 80% Exchange based loss estimate p e r c e n t a g e c o v e r a g e 70% 60% 50% 40% 30% Network data based model percentage coverage 70% 60% 50% 40% 30% Network data based model 20% 20% 10% 10% 0% 0% 0 1 2 3 4 5 6 7 8 9 10 Downstream (Mb/s) ADSL Line Length and Line Quality are key factors 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Downstream (Mb/s) ADSL2+ Performance is limited by crosstalk from other end users - Cable fill has an impact - Actual performance depends on relative position of copper pairs in the cable - Every line is in a unique situation 4 Other Factors include: External Noise, Customer Wiring, Modem and Configuration Options

Openreach and the UK Supply Chain Deliver Next Generation Access Capability to Communications Providers at lowest practical economical point - Equal access to all Communications Providers The UK Supply Chain - Open Network - Enable CP Innovation Customer (End User) - Enable Excellent Customer Experience Quality of Service Fulfilment, Assurance and CP Migration and/or Retailer and/or Solutions Provider Common Presentation to CPs - Ethernet Bitstream - Option for Physical Media Independence Communication Provider Openreach Equivalence of Input Enable Voice and Broadband (Data) applications

Super-fast Broadband rollout. BT s July 2008 Announcement Phase Deployment A further 1 billion will be spent to make fibre-based, super-fast broadband available to approximately 66% (16 million) of UK homes and premises by 2015 On course to pass 4 million homes by the end of 2010. We will provide a service capability on an equivalent basis to all CPs Deployment locations must be commercially viable Roll out will be demand-led, based on CP commitment to Openreach Local/devolved government can help achieve and assess viable levels of demand We plan to install an average of 80-90 cabinets per day Phase Exchanges Cabinets Premises Passed 1 2 96 29141 2 29 1820 701628 3 65 2911 998489 4 87 3367 615796 5 217 9039 6 219 5818 7 To be announced early 2011

Super-fast Broadband rollout Phase 1: 30k premises passed (July 2009) Customer trial in Whitchurch and Muswell Hill Glasgow Halfway brought forward and enabled Oct 2009 Phase 2: 500k premises passed (early 2010) The next 28 exchanges enabled for FTTC Phase 3: 1m premises passed (spring 2010) The next 68 exchanges enabled for FTTC Up to 40k premises passed in Bradwell Abbey, London, and Highams Park, Milton Keynes, for the FTTP brownfield customer trial Phase 4a: 2.5m premises passed (late summer 2010) The next 63 exchanges enabled for FTTC End of 2010: 4m+ premises passed June 2012: 10m premises passed 40% UK (FTTC 75%, FTTP 25%) Key Areas of NGA bid activity FTTP FTTC Trial/Pilot Northern Ireland Halfway 2. Northern Ireland 3. Belfast Northern Balmoral Ireland Lisburn 2. Scotland Dean 3. Scotland Glasgow Western Edinburgh Corstorphine Edinburgh 4a. Craiglockhart Scotland Glasgow Penicuik Bridgeton Glasgow Dalgety Giffnock Bay Dunfermline Livingston Station Glasgow Glasgow Newton Mearn Bothwell 4a. Midlands & Wales 3. Midlands Solihull & Wales Earlsdon Glossop Kenilworth Hinckley Tamworth 2. Midlands Barry & Wales Warwick Penarth Calder Valley Birmingham, Ortons Cardiff Northern Stoneygate Fallings Halifax Park Coalville Great Pudsey Barr Willaston Leamore Taffs Well Llanishen Nuneaton Caerphilly Llanedeyrn Tettenhall Hednesford Wednesbury Beauchief Walsall Ranmoor 4a. West Toothill Whitchurch Blunsdon Chippenham 3. West Bristol Worle North Portishead Bristol West Locksheath Downend Cornwall Chandlers Ford Fair Oak Andover Eastleigh 3. Northern England Chester-Le-Street Durham East Herrington Hetton-Le-Hole Altrincham Aston-Under-Lyne Cheetham Chorlton Denton Hyde Manchester East Moss Side Prestwich Stalybridge Swinton, Gtr Manc Urmston Walkden Wilmslow Armley 2. Northern 4a. Northern England England Castleford Bury, Gtr Bramhall Manc Headingley Didsbury Congleton Low Heaton Moor Lofthouse Moor Gate Pontefract Failsworth Guiseley Shipley Oldham Rusholme Bradwell Abbey 2. London Thamesmead Enfield 3. London Chingford Barking Tottenham Barnet 4a. London Watford Eltham Albert Dock Woolwich Greenwich Wanstead Canonbury Hornchurch Mile End Edmonton Ingrebourne Parsons Green New Southgate Skyport Ponders Greenford End Sidcup Merton Park Slade Putney Green Stamford Wimbledon Hill Sutton Cheam Mitcham London Muswell Hill 4a. Home Counties Bicester 3. Home Newport Counties Pagnell Berkhamsted Aylesbury Billericay Didcot Brentwood Harpenden Elstree 2. Home Maidenhead Counties Hainault Leagrave Crowthorne Hoddesdon Luton Wokingham Lea Chelmsford Valley Earley Loughton Hemel Hempsted Langley Stanford-Le-Hope Basingstoke Caversham St Reading Albans South Waltham Henley Cross on Thames Woodford Braintree Dartford Brighton Hove Sittingbourne Portsmouth Central Foxhall Highams Park Ebbsfleet

Openreach Next Generation Access options Openreach Handover Point External Network End User CP1 GPON Shared Bandwidth ONT ~32 way split Ethernet 10/100Mbit/s LAYER 2 SWITCH CP2 CP N 2.4 Gbit/s Downstream 1.2 Gbit/s Upstream Ethernet 10/100Mbit/s Remote VDSL2 DSLAMs Active BitStream Products CP1 CP2 CP N LAYER 2 SWITCH Pt-Pt or PON fed DSLAMs DSLAM DSLAM DSLAM MDU Ethernet 10/100Mbit/s CP1 LAYER 2 SWITCH CP2 CP N Point to Point Ethernet Ethernet 100Mbit/s 1Gbit/s A B Openreach product from A to B EOI Active Line Access products offered to CPs

Illustrative impact on number of headend locations

FTTP infrastructure - why PON? Compared to Point-Point fibre, a PON solution offers - Reduced head-end equipment complexity and cost - Shared optics 1 to 32 End Users Reduced fibre management complexity at the serving exchange - Smaller and less complex Optical Distribution Frames - Fit and Forget network no additional infrastructure build to End User to supply additional CP access and services Reduced network build costs due to lower fibre count cables - Minimised duct build and fibre interconnect Hands off electronic CP churn and service upgrade Potential evolution to long reach PON technologies over time or in specific geographies - Supports strategic drive to reduce network build and operational costs

Product - why Ethernet? Established and very competitive equipment market Common interface across many different physical media (e.g. PONs, Pt-Pt, xdsl copper, Wi-Fi) Includes Ethernet OAM functions which allows: - Clear demarcation between downstream & upstream providers - Testing & diagnostics can be performed by downstream & upstream providers independently (key for consistent & good customer service) Allows downstream providers to innovate in IP services unhindered by details of upstream technology Multi-service: - E.g. VoIP, Video, Broadband, IP VPNs on the same physical interface - Multi downstream providers on the same physical interface

NGA Generic Ethernet Access products Product Downstream Peak Downstream Prioritised Downstream Hard Fault (FTTC DSL Line Rate) Upstream Upstream Hard Fault (FTTC - DSL Line Rate) GEA-FTTP 40Mb/s 20Mb/s 20Mb/s 2Mb/s 2Mb/s GEA-FTTC 40Mb/s 20Mb/s 15Mb/s 2Mb/s 250kb/s GEA-FTTP 40Mb/s 20Mb/s 20Mb/s 10Mb/s 10Mb/s GEA-FTTC 40Mb/s 20Mb/s 15Mb/s 10Mb/s 2Mb/s GEA-FTTP Premium 100Mb/s 20Mb/s 20Mb/s 10Mb/s 10Mb/s GEA-FTTC peak rates reflect the innate uncertainty in a DSL delivered service over variable copper loops. GEA-FTTC selects lines to deliver assured 15Mb/s downstream DSL line rate. FTTP platform uses dynamic bandwidth allocation to offer peak rates above the committed rate. There is the opportunity for further product bandwidth enhancements e.g. the current generation of ONTs is capable of supporting a 1Gbit/s peak rate service.

NGA FTTC architecture - Brownfield overlay Hand-Over Node VDSL2 DSLAM PCP End User Premises CP1 CPn HO Head End NTE 5 & SSFP GEA Data Port VDSL2 modem Direct fibre Multiple GigE links 240Vac Baseband Voice & Legacy Services Existing Copper E-side Network from DLE D-Side Copper GEA Product Voice and Legacy services supplied from the exchange. Premium Broadband product provided as GEA over FTTCab Demand led deployment model

FTTC Access infrastructure

VDSL2 Cabinet Primary Copper Crossconnect Cabinet

NGA FTTP architecture CP 1 in same BT building NGA hand-over node External network End user CP 2 outside BT building CP 3 remote different BT building CP 4 remote non BT building Fibre Joint HO Frame HO Frame Cable Link ONBS BES Optical interfaces - 1 Gbit/s or 10 Gbit/s GPON OLT GPON OLT Shared bandwidth 32 way split 32 way split 28dB max ONT 1 ONT 32 Port 1 Port 4 Port 1 Port 4 End user interface - 10Mbit/s 100Mbit/s 1000Mbit/s Ethernet Existing products Openreach GEA product variants GEA data product GEA voice enablement product GEA CP GigE port product (includes fibre connectivity)

FTTP Access infrastructure - Brownfield

Splitter Node (SPN) 128 Customer Capacity Splitter No.3 Splitter No.4 Splitter No.2 BTID designed High Capacity Single Customer tray I/O I/O Splitter No.1 Storage trays Spare D fibres Storage trays Splitter outputs SPLITTER LEG(S) Cutomer trays D side fibre Tray 1 TRAY 1- fibre route (<4 fibres) TRAY 2- fibre route (<4 fibres) Tray 2

GPON ONT 4x 1GE Ethernet Ports 2x Voice ports

Summary - NGA a Mixed Economy model CP Handover Point Layer 2 Switch FTTC VDSL2 FTTP GPON Pt-Pt Ubiquitous Ethernet interface across different platforms Accessible by up to 10 million homes by 2012 Range of speeds up to 100Mbit/s Basis for nationwide rollout led by demand and commercial viability Generic Ethernet Access FTTC Where - Brownfield overlay Benefit Enhanced product portfolio Address competitive threat Rapid deployment When Operational Trial Dec 2008 Market Trial July 2009 Early Market Deployment Jan 2010 FTTP Where - Greenfield Newsites Brownfield low Capex Benefit Enhanced product portfolio Reduced Capex Reduced Opex When - Brownfield Tech Trial Dec 2009 Brownfield Pilot April 2010 Greenfield Predicated on Strategic Voice Solution Investment depends on a range of regulatory issues which are the subject of ongoing discussion. Pt-Pt Major Business Sites Business As Usual

Future - 10Gbit/s PON The optical bearer in a PON architecture has bandwidth capacity to meet current and future End User requirements Current FTTP deployment includes WDM components necessary to allow current 2.4G and future 10G systems to operate on the same fibre bearer. WDM technology facilitates system upgrade of targeted or general End User population 10G PON standards were finalised in June 2010 G.987 series Hand-Over Node CP1 HO CPn Ethernet Switch OLT OLT WDM 32 way split End User Premises ONT End User Premises Generation 1 GPON Generation 2 GPON Wavelength Filters ONT

WDM-PON No decision on preferred WDM architecture yet but actively engaged with developments to ensure current build doesn t introduce barriers for future application and opportunities. Each customer served by a dedicated wavelength 1Gb/s per customer Requires a new wavelength splitter technology MDU 10 20 30 40 A A W G VDSL FTTDP Research prototype WDM-PON system under evaluation We are working on standards in FSAN/ITU could be complete ~2012

The NGA Case - Conclusions Most Global NGA solutions are delivered by Vertically Integrated Providers who link new application revenues to infrastructure investment NGA with Functional Separation (Horizontal segmentation) requires: - Regulatory certainty - Effective Commercial and Business Models which match long term infrastructure investments to shorter term Retail cases - An industry consensus on the demand and the approach - Effective Wholesale access products - Well developed Retail products Volume and scale are critical for all in the industry. Whatever happens expect a mixed-economy model for a considerable time.