WDM-PON Technology: How it can facilitate the last mile

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WDM-PON Technology: How it can facilitate the last mile Olivier Couderc Market Development Leader, France Middle East and Africa TERENA Amsterdam, December 2008 1

Agenda 1. Market trends and requirements Market dynamics Market requirements Deployment options Standardization in progress 2. Nortel s vision of Next Gen Access Key Technologies and benefits Solution Overview 3. Conclusion 2 Nortel Confidential Information

Market Dynamics The Challenge for Service Providers Dynamics: Bandwidth and Content More bandwidth hungry applications More devices designed to access the network Digital content is driving massive bandwidth demand Growing competition to win End user End users are consuming more than ever Challenge: Overcoming the Last Mile bottleneck High bandwidth Core Networks Bandwidth delivered to End User = Service Providers are re-evaluating their access networks strategy and business models to remain competitive 3 Nortel Confidential Information

South Korea leads the way 4 Nortel Confidential Information

Real Consumer demand for Higher Bandwidth? GPON 5 Nortel Confidential Information

Fiber Access Assertions > Ethernet will be Everywhere > Residential, Business and Backhaul services will converge to single infrastructure > Fiber will progressively replace copper in the access to cope with traffic increase > New cable laying remains the #1 cost, thus PON technologies which optimize usage of the existing fiber are key > But legacy TDM PON (GPON) is not Future Proof and is not well suited to converged Residential/Business/Backhaul infrastructure > OPEX considerations are critical in the Last Mile NextGen Fiber Access solutions required for continued Service Evolution and Innovation 6 Nortel Confidential Information

Next Generation Ethernet Fiber Access: Key attributes wish list > Operations Simplicity > Support Converged Business/Residential services > > > > Highly Scalable, Deterministic Solution Dedicated, Point-to-point, Symmetrical Bandwidth In-Built Security Evergreen 7 Nortel Confidential Information

Fiber Access Deployment options Point to Point + Future Proof Architecture + Follows Telco wiring Practices + Bit Rate & Protocol Independent - CO Fiber Management - Fiber Availability TDM PON + Simplified CO Fiber Management + Passive OSP Plant Solution + Low power consumption + Maturing Technology - Shared Bandwidth (DS & US) - Real time Software Intensive - Complex upgrade evolution Active Remote + Simple deployment model + Flexibility of #Users vs Line Rate + Bandwidth Upgradeability In Building Outside Cabinet - Shared Bandwidth - Active electronics in OSP - High power consumption - Sub-Optimal Scalability WDM Fiber Access ADVANTAGES of P2P & TDM PON + Passive Wavelength Secure, Reach, Router Scalability No Wavelength Planning & Limited Engineering 8 Nortel Confidential Information

Standardization Evolution ~nge ~GE Capacity <100Mb Point2Point Ethernet G-PON GE-PON Greenfield Res/Biz PON WDM PON option Ethernet over WDM NG-PON1 incl. long-reach option WDM option to enable to overlay multiple G / XGPONs XG-PON (Up: 2.5G to 10G, Down: 10G) Equipment be common as much as possible Can TDM NG-PON2 Common infrastructure High Capacity Secure and Symmetrical Native Ethernet PONs scale? Now ~2010 ~2015 WDM PON current availability sets a new standards path! 9 Nortel Confidential Information

FSAN NG-PON Workshop 10 Nortel Confidential Information

Nortel s s vision of Next Gen Access 11 Nortel Confidential Information

Fiber Access Made SIMPLE Central Office Flexibility Outside Plant Simplicity End User Performance Residential Single Dwellings Residential - Multi-Dwelling Wireless Backhaul Small Medium Businesses Central Office OLT Wavelength Filter Subscriber ONT/ONU What matters in FTTH? To build for the long term, especially on the outside plant construct To make operations easier Automatic wavelength selection upon activation Dedicated and Symmetrical P2P or P2MP bandwidth Consistent Operations and Engineering methodologies 12 Nortel Confidential Information

Nortel s Ethernet Access Service Provider Benefits > Provides a future proof point to point construct with a secure bi-directional wavelength per customer > Provides a simple deployment and OPEX friendly architecture passive splitter, Colorless ONTs, single fibre working > Service Velocity - Tailored to scale for Residential and/or Business services on a per user basis The future of fibre Access, available today 13 Nortel Confidential Information

Fiber Access Overview WDM PON Key Values ONT 100M λ, 1GE λ and Higher Line Rates 32 λ and Higher densities in the future λ1 Residential OLT λ 2 ONT CO Service Terminal with Packet Processing WDM Filter Low Cost Passive Filter in outside plant λ n Wireless BH OLT: Optical Line Terminal ONT: Optical Network Termination WDM: Wavelength Division Multiplexing Simple Engineering & Deployment Flexibility Performance ONU Business Multi Tenant Unit Infrastructure independent service evolution Plug & Play colourless optics at end use Point to point and point to multi point connectivity Symmetrical bandwidth (upstream/downstream) Dedicated wavelength/ bandwidth per end user 14 Nortel Confidential Information

WDM Fiber Access Enabling Technology Automatic Wavelength Locking BLS Broadband Light Source Spectral Slicing λ Spectrum before locking Colorless Laser Spectrum after locking Athermalized Array Waveguide Grating (AAWG) Wavelength Router 1530nm 1560nm 1530nm 1560nm Identical, Colourless ONUs using low-cost lasers Elimination of high cost wavelength-specific lasers Low inventory management cost 15 Nortel Confidential Information

Ethernet Access 1100 Portfolio Summary OLT Ethernet Access Service Terminal ONT Ethernet Access Residential/Business Unit EMS Ethernet Access Manager 1100 EAST 1100 13 slot Chassis Upto 8 Service Slots 5 Slots reserved for Commons Redundant switch fabrics Network Interface/ Switch Units Up to 8 Network Interfaces Mixed Access technology support WDM-PON Point-to-Point Ethernet Density Upto 1024 λ / rack (4 shelves) Advanced L2/L3 Packet Engine EARU 1112 Indoor Residential Design Stylish, Compact and Environmentally friendly design Low power consumption Installed vertically or horizontally with available cradle Identical, colorless ONT/ONU Fully colourless operation Low inventory management cost Interfaces 4 10/100Base-Tx RJ-45 ports Optical Connector SC/APC Advanced QoS and Classification Alarm & Event Management Configuration Management Provisioning Management System/PON Port Backup & Restore Statistics Management Software Version Management Remote Nodes Wavelength Passive Filter WPF1132c Cabinet Tray WPF1132r/p Ruggedized / Pole 16 Nortel Confidential Information

Engineering Considerations Nortel s Ethernet Fiber Access vs others xpon Ethernet Fiber Access Engineering TDM PON Engineering 60km 40km 20km Low Density Suburban/Rural 32 or (4 x 8) Wavelengths > 40km Medium Density Urban/Suburban 32 Wavelengths 20 40km > ODN High Density is characterize Core as 32 or 64 Wavelengths < 20km Number of Wavelengths ( λ ) C B+ B A Low Density Rural Medium Density Suburban/Rural High Density Core/Suburban 4 8 16 32 64 Split ratio (1:n) Passive OSP WDM Filter LOW loss components # Port independent ~ 5db loss User bandwidth independent of #subscribers Reach is independent of bit rate Simple & Flexible OSP operations model Passive Splitter HIGH Loss components 32 power split ~ 17db loss; 64 Split ~ 20db loss User bandwidth is inversely proportional to distance and # of subscribers CANNOT maintain a consistent Engineering methodology 17 Nortel Confidential Information

Technology Direction Lossless filter Colorless laser GEth WDM-PON Cascaded filters Low Noise Broadband Seeding Light Source Photonic Integrated Circuits Increased Line Rate Increased flexibility Open solution 2009 Increased λ capacity Increased density Increased reach SFP Design >2009 AWG BLS Operationally simple Ethernet WDM for business and residential access with unmatched capacity 2008 18 Nortel Confidential Information

Conclusion 19 Nortel Confidential Information

Customer Trials and Summary of Engagements NA EMEA APAC Since 1Q - 2008 2 public on-going deployments 15+ Lab and/or Field trials performed Understanding and validating applications Business/Residential Services: VPN, Residential Wireless Backhaul Backhauling remote DSLAMs 20 Nortel Confidential Information

deterministic innovative symmetrical open Nortel s Ethernet Access Solution with WDM-PON foundational secure simple dedicated

22 Thank y u