Broadband Experiences in Asia Pacific The Journey & Lesson Learned

Topics

• Who is the FTTH Council APAC

• What are the benefits of FTTH?

• Recent market study on FTTH in APAC

• Drivers of FTTH in APAC

• Challenges of FTTH in APAC

Established in March 2005

Currently has 75 members

BoD, GM & 7 working committees

*Source : Ovum

Monique Morrow (President)

Technology &

Standards

Bernard Lee

Membership

Yoshihiro Ishibashi

Education &

Training

Xingfu He

Market Intelligence

Anil Pande

Application &

Solutions

Alexis Bernadino

Emblem

H. Munasir Choudhury

Planning, Comms. &

Events

Zony Chen

1563 New Users/Hour

US $60B Worth Projects in APAC

CHINA >100m FTTH users by 2017

17% CAGR 2011~2017

159.5M FTTH users by 2017

92.7M FTTH subscribers

Year-end 2013

www.ftthcouncilap.org

FTTH Council Global Alliance (FCGA)

70 Members

Source: APAC FTTH Council

What are the benefits of FTTH? - Economic

‘A 10% increase in broadband household

penetration will boost a country’s GDP by 0.9% ~

1.5%

‘A business/organization in the USA, 10% greater

utilization of internet will increase revenue by 24%

& reduce cost by 7%’

‘Doubling broadband speed produces a 0.3%

increase in GDP’

‘with FTTH, operators can generate ARPU that are, on average 46%

higher, by offering unique services’

‘on average, cost saving of between 0.5% and 1.5% in each of the four

section (electricity, transport, energy health) over 10 years resulting directly

from the new network could justify the cost of deploying FTTH

What are the benefits of FTTH? - Social

E-health

Teleworking

E-learning

Smart City

FTTH Boost Productivity for all…

*Source : Ovum

92.7 million FTTH subscribers Asia Pacific - year-end 2013

281.7 million wireline broadband subscribers

79 million FTTx subscribers Asia Pacific - year-end 2012

272.5 million wireline broadband subscribers

FTTH

Cable Modem

DSL

FTTH

Cable Modem

DSL

29% 33%

63.6% 59%

8% 7.4%

+ 13.7 million

4%

0.6% 4.6%

*Source : Ovum

FTTH leads the growth in wireline broadband – beginning of DSL decline

Will exceed 159 million subscribers in 2017

-7.12m

>100million

*Source : Ovum

FTTH is the major growth segment and exceeds DSL in 2017

Wireline broadband subscribers in Asia-Pacific will exceed 338 million in 2017

FTTH to overtake DSL in 2017

FTTH

DSL

*Source : Ovum

FTTH growth analysis by country – 2013 to 2017 (Key Markets)

China is the most FTTH connection & will approach 100 million FTTH subscribers by 2017, a CAGR of 19% from 2013 to 2017. Even with significant growth, household penetration reaches only 25% in 2017.

Hong Kong – growth continues at slower rate given already high household penetration. Expected to reach household penetration of 82% in 2017

Japan – has been deploying FTTH for many years so growth rate is small and seeing slow down. Expected to reach 70% household penetration in 2017.

South Korea - has been deploying FTTH for many years so growth rate is small but still maintain to be the country with highest penetration. Expected to reach 73% household penetration in 2017.

Australia – major change in NBN plan likely, thereby limiting FTTH deployments.

New Zealand – high growth, household penetration expected to approach 29% in 2017.

Drivers for FTTH in APAC • Demography: a huge market potential

• India and China are the most populated countries in the world (APAC >50%) • MDUs are dominating in large cities especially in China • Asia Pacific’s FTTH/B subscriber base will grow to 160 million at year-end 2017.

• Low competition from other networks

• As in Eastern Europe, the “quality gap” between copper and fibre networks is important: end users will need fibre for higher bandwidth

• Cablecos are less dominating the broadband market than in Europe or in the US… but it could change (SARFT in China)

• A key driver for mass market migration in APAC: NBN programs

• Incumbents leading rollouts in APAC but also some free room for new entrants

• Some incumbents are deeply involved in national FTTH/B deployments (Malaysia) • New entrants in large countries (India) or in challenging markets (Vietnam)

• APAC Mobile centric countries will need fibre also: LTE Backhaul

Challenges FTTH Deployment & Adoption – 5Cs

Competency

Civil & Construction

Content

Customer Equipment

Customer Awareness

Deployment

Monetisation

Adoption

Challenge Impact

Manpower need to be competent to deploy & maintain the network

Up to date digital home equipment to fully enjoy benefits of FTTH

New guideline and best practices are required to deploy fiber up to

the customer premises

New content is needed to capitalize the additional speed

offered - Increase ARPU

FTTH will struggle to evolve beyond being a just another

commodity product

Customers will fail to experience benefits of FTTH over DSL

Deter new users from subscribing to the FTTH services due to

extensive civil work required

Insufficient skilled/competent manpower will delay deployment

thus increasing TCO

Customers are unknown of the new capabilities and potential of

FTTH

Customers reluctant to adopt FTTH services

Copper Installers not used to handling fibre

Inexperience contractors finding difficulty working with aerial distribution

fibres

Unfamiliar working with fibre cables. Time

taken approx 6hrs

15

Selection of substandard or defective material

Broken off ferrule

Selection of substandard or defective material

Lack of appreciation for fibre connector cleanliness accounts for 90% of all reported faults

Lack of appreciation for connector care during

ODF installation at Central Office

Connector cleaning was not performed

leaving finger oil traces on

connectors

18

Lack of appreciation for minimum bending radius requirements

thus causing macrobending

Lack of appreciation for minimum

bending radius requirements

19

Handling of Fibre cables… unlike copper, fibre has to be treated with more care

Role of the FTTH Council Asia-Pacific Education & Training Committee

Role: Created to promote the FTTH Council APAC as

‘trusted & impartial central source’ for knowledge, facts, education and perspectives of FTTH

Criteria for Endorsement:

• Supply a consistent and accurate view of FTTH • Training program must be impartial • Training syllabus must be relevant to target market

Material for Endorsement:

• Reference document (book or training manual) • Supplementary training material (slides, video, equipment, etc)

Process Flow of Endorsement

• Training institution (Requestor) will submit a request to the E&T Committee Chair/Vice Chair for endorsement

• Determined if NDA is required (if not proceed to next step)

Request for Endorsement

• Upon acknowledgement of E&T Committee, all training material must be submitted to E&T for review (please refer to material list)

• Review Cycle < 1 month

Submission of training material

• E&T Committee will revert with a feedback of their review of the material

• E&T Committee may suggest changes to comply to guideline (please refer to

guideline)

Result of review

• Representative from E&T Committee is to perform an audit visit to ‘sit-in’ at one of the training program (All travel expenses to be paid by requestor)

• Auditor to submit report to E&T Chair/Vice Chair

Audit Visit by E&T Committee

• E&T Committee based on the Auditor’s report will revert to requestor if endorsement is granted

• Endorsement Letter to be issued to Requestor

E&T Committee Decision

Pro

cess

Flo

w

Photos taken during training in SEA

22 22

Lecture Session

Lecture Session Training Equipment

Hands-on Equipment

23

Source: FOA

Civil & Construction Cost

24

Telecommunications ducts are not given priority

Lack of care by property owners has rendered telecommunication access points not

conducive to work on

Silt over the years has blocked majority of the underground ducting

25

Extensive civil required to bring the services to the customers

Vertical saw cut into external wall of customer

premise to allow installation of new ducts

Installation of raceways at customer premises

Slot cutting machine wheeled into position

www.ftthcouncilapevents.com

FTTH Council Asia-Pacific Annual Conference

www.ftthcouncilapevents.com

www.ftthcouncilap.org