Dr Nguyen Duc_Gigabit Networks_Feb 2014

Gigabit Networks

Dr Nguyen Duc Principal – EagleComms Advisory

Melbourne, Australia

Telecommunications Association Inc. (TelSoc) Lunchtime Presentation Melbourne, 25 February 2014

How many people have 10 Mbps?

25 February 2014 © 2014 Dr Nguyen Duc – EagleComms Advisory 2

10 Mbps

Source: Nguyen Duc, Oct 2013

How many people have 100 Mbps?


100 Mbps


How many people have 1,000 Mbps or 1 Gbps or 1 GIG?


1,000 Mbps

1 Gbps or 1 GIG


Think Capacity. Think Capability.


10 Mbps

100 Mbps

1,000 Mbps

1 Gbps or 1 GIG

‘Access Pipes’


What does 1-GIG Pipe mean?


Web will be faster. High-Definition Images will be sharper.

Downloading & Uploading will be superfast.

• In ONE minute: Theoretically, 7.5 GB DVD, or 2,500 songs, or 1,500 photos, or 375 chest X-rays.

• FULL HD movie within Four minutes. Song (MP3): 3MB | Photo: 5MB | X-ray: 20MB | Movie (Full HD 1080p): 25GB



What?

Why?

Where?

How?

Examples

Learning

GIG Networks

GIG Networks


Broadband Access Networks (‘Access Pipes’) capable of supporting digital transmission at peak speeds of up to 1 Gbps (1 GIG), either downstream or upstream, or both, for residential and small business users.

Wireline or Fixed-Line Access.

Wireless Access. Source: Nguyen Duc, Oct 2013

GIG Networks Why? Where? How?

MOTIVATIONS: Government policy (e.g. South Korea).

Infrastructure competition (e.g. Hong Kong, Japan).

Community initiatives (e.g. UK/Europe, USA).

Innovative use of public utility resources (e.g. USA).

Innovative business models (e.g. USA, Canada).



GIG Networks – Examples

Gigabit Internet Project (South Korea).

HKBN (Hong Kong).

B4RN – Broadband for the Rural North (UK).

Chattanooga Gig City™ EPB Fiber (USA).

Google Fiber (USA).

Reactions from incumbents to Google Fiber.


Source: Nguyen Duc, Feb 2014

South Korea

SK has world’s highest average connection speed of 22.1 Mbps. (Akamai, Quarter 3, 2013). [Second highest average peak speed: 63.6 Mbps]

SK has world’s second highest combined FTTH-FTTB household penetration of 69% in Dec 2012. (IDATE for FTTH Council Europe, Feb 2013)

SK has a strong government policy focus on information and communications technology (ICT).

FTTH: Fibre-to-the-Home. FTTB: Fibre-to-the-Building



South Korea’s Gigabit Project

Initiated in 2009 by SK Government, in partnership with industry (including KT Corporation, SK Broadband, LG U+):

Gigabit Internet service used by 8,300 households in 10 cities in 2012. Target: 90% nationwide Gigabit coverage by 2017. (ITU BB Report, Sept 2013)

Customers pay about 30,000 KR wons a month. (Approx. AUD31, NZD34, USD28, GBP17, EUR21)

“We need to be prepared for things like 3-D TV, IPTV, high-definition multimedia, gaming and videoconferencing, ultra-HD (4K/8K) TV, cloud computing.” (SK official, Feb 2011)



Hong Kong

HK has world’s highest average peak connection speed of 65.4 Mbps. (Akamai,

Quarter 3, 2013). [Third highest average speed: 12.5 Mbps]

HK has world’s third highest combined FTTH-FTTB household penetration of 56% in Dec 2012. (IDATE for FTTH Council Europe, Feb 2013)

HK is a fierce infrastructure-based broadband competitive market, in particular between HKBN and PCCW-HKT.

FTTH: Fibre-to-the-Home. FTTB: Fibre-to-the-Building



HKBN 1-GIG FTTH Service


Hong Kong Demographic Stats (2013)

Population: 7.2 million.

Land Area: 1,054 square kms.

Pop Density: 6,830 persons/square km. (world’s 4th highest density)

Urbanisation: 100%.

Hong Kong Broadband Network launched Hong Kong’s first 1-GIG symmetrical FTTH services in Sept 2010 for HKD199 a month. (Approx.

AUD29, NZD31, USD26, GBP16)

HKBN fibre network covers over 2 million residential homes. (Feb 2013)


http://www.gadgetsmagazine.com.ph/feature/hong-kong-moves-quickly-on-gigabit-broadband.html/attachment/hkbn

B4RN


B4RN: Broadband for the Rural North.

UK’s first community-powered broadband network in rural Lancashire, offering 1-GIG symmetrical FTTH services (January 2013).

Community-owned and managed.

Share-based investment opportunity open to all, gained through cash or ‘sweat equity’.

Source: B4RN, 2013 Photos: Recombu, 2012

B4RN 1-GIG FTTH Service

Customers provided with a standard 4-port Gigabit switch and 1-hour battery backup for Voice-over-IP (VoIP) telephone services.

Monthly Fee: GBP30. (Approx. AUD55, NZD60, USD49, EUR36)

Installation Fee: GBP150. (Approx. AUD275, NZD300,

USD245, EUR180)

B4RN network uses point-to-point FTTH architecture, with every customer premises receiving a two-fibre cable connected back to their village node.

NOTE: UK Connection Speeds: 9.1 Mbps (Average); 35.7 Mbps (Peak). Source: Akamai, Quarter 3, 2013


Source: B4RN, 2013

Chattanooga Gig City™


Chattanooga’s EPB Fiber (Tennessee): First municipal broadband network in the USA to offer 1-GIG symmetrical FTTP services in Sept 2010.

FTTP services provided over the EPB Fiber’s Smart Grid, covering about 170,000 homes and businesses (over 600 sq. miles, or about 1,600 sq. kms).

August 2013: About 56,000 Internet residential and business customers. But only 34 1-GIG customers, including 8 residential.

1-GIG Internet: US$300 per month.

EPB: Electric Power Board.

FTTP: Fiber-to-the-Premises.

Source: EPB Fiber, Oct 2013

EPB slashed 1-GIG Internet price


October 2013: Chattanooga’s EPB Fiber upgraded Internet services for all of its residential customers, with only 1 Gbps and 100 Mbps being offered.

1 Gbps for US$70 per month (slashed from US$300) for existing 100 and 250 Mbps services.

100 Mbps for US$58 per month (unchanged) for existing 50 Mbps services.

EPB Fiber Customer Base: (Jan. 2014, approx.)

1 GIG: 3,640 residential; 55 businesses.

100 Mbps: 48,500 residential; 3,800 businesses.

USD70 = AUD78, NZD85, GBP43, EUR52 (approx.)

USD58 = AUD65, NZD71, GBP36, EUR43 (approx.)

Source: EPB Fiber, Feb 2014

http://www.google.com.au/url?sa=i&source=images&cd=&cad=rja&docid=MvZ3_mKTG6g9MM&tbnid=28QFDiXjrahXgM:&ved=0CAgQjRwwAA&url=http://www.marchofdimes.com/tennessee/events/events_10831.html&ei=BuRCUv3KGsbTkgWQr4CYBg&psig=AFQjCNHJn8r5wlg0f4MCvk7wIq1N30qnEA&ust=1380201862504249

Google Fiber

BACKGROUND & MOTIVATION:

In early 2009, the US Congress directed the Federal Communications Commission (FCC) to develop a National Broadband Plan (NBP) to ensure every American has “access to broadband capability”.

A small team at Google was preparing to provide comments to the FCC.

Google management said: “Why whine to the Government? If this is important, we should do it ourselves.” So a Google Fiber team was formed in June 2009. (Source: Google, Feb 2013)

NOTE: US Connection Speeds: 9.8 Mbps (Average); 37.0 Mbps (Peak). Source: Akamai, Quarter 3, 2013


Google Fiber RFI

In February 2010, Google announced plans to build ‘Google Fiber’ networks – Gigabit Fiber-to-the-Home (FTTH) broadband networks.

Google initiated a Request for Information (RFI) to see if any communities of 50,000 to 500,000 people would be interested in partnering with the firm in the deployment of Google Fiber networks.

Over 1,000 communities responded!

Kansas City, Kansas was selected. (March 2011)

Kansas City, Missouri was selected. (May 2011)

Kansas City pop: 611,000 people. (2012)

Kansas side: 147,000 people.

Missouri side: 464,000 people.


Source: Google Fiber, 2011

Google ‘Fiberhood’ Qualification

Google used social community drives to aggregate user demand. US$10 pre-registration fee.

Neighbourhood ‘Rallies’ were run to determine where demand for Google Fiber is.

Deployment based on where threshold demand targets were met: ‘Fiberhood’ qualification!

Schools, libraries, and public safety in Kansas City ‘Fiberhoods’ connected at a GIG for free (10 years).

Google Fiber residential subscribers connected ‘in waves’, and not one at a time.

Google Fiber deployment costs also reduced with special support from partnership local councils.


Source: Google Fiber, Sept 2012

Google ‘Fiberhood’ Qualification


180 Qualified ‘Fiberhoods’ in Kansas City Source: Google Fiber, Sept 2012

http://2.bp.blogspot.com/-64Z9vJoQggo/UE14wO0OwyI/AAAAAAAAAEA/yG-ME6PKmZ4/s1600/Kansas-City-Qualfied-Fiberhoods.jpg

Google Fiber


Source: Google Fiber, Nov 2012

http://b-i.forbesimg.com/cherylsnappconner/files/2013/07/Google_fiber_logo.jpg

http://www.forbes.com/sites/parmyolson/2013/04/26/infographic-if-google-fiber-went-worldwide/

Google ‘Fiberhood’ Deployment

Hanover Heights in Kansas City, Kansas: First ‘Fiberhood’ to be connected to Google Fiber (November 2012).

Additional surrounding areas around Kansas City, Kansas and Missouri subsequently selected and included in the Google ‘Fiberhood’ user demand-driven deployment program.

In April 2013, two other cities selected for Google Fiber deployments:

Austin, Texas (from mid 2014). Population: 843,000 (2012).

Provo, Utah (from Oct 2013). Population: 116,000 (2012).


Source: GigaOM, 2013 Source: Provo Daily Herald, 2013

Google Fiber 1-GIG Speed Test


[Mike D.] posted this on Twitter during the first few minutes that Google Fiber went live in his Kansas City home (Nov 2012).

Source: Ars Technica, Nov 2012

DOWNLOAD UPLOAD

Google Fiber 1-GIG ‘Speed Race’


Applications

100 Photos 100 Songs Game

HD Movie

Google Fiber (up to 1 Gbps)

3 seconds 3 seconds 3 seconds 7 seconds

10 Mbps

4 minutes 40 seconds




Source: Google Fiber, Feb 2014

Google Fiber in Kansas City

Three Google Fiber services offered:

Gigabit Internet: US$70 per month. US$300 construction fee waived.

Gigabit Internet+TV: US$120 per month. US$300 construction fee waived.

Free Basic Internet: US$0 per month.

US$300 construction fee (one time, or US$25 per month for 12 months).

Approx. Conversions (5 Feb 2014):

USD70 = AUD78; NZD85; GBP43; EUR52.




Source: Google Fiber, Nov 2012

Google Fiber Gigabit Internet


Up to 1 Gbps download & upload. 1-year contract. No data caps. Network Box. 1TB of Cloud Storage across Gmail, Drive and G+ Photos.

US$70 per month.

(Not Included: Laptop)

Source: Google Fiber, Oct 2013

Google Fiber Gigabit Internet+TV


Up to 1 Gbps download & upload. Full channel TV line-up. 2-year contract. No data caps. Network Box. 2-TB Storage Box. HDTV Box. Nexus 7 Tablet.

1TB of Cloud Storage across Gmail, Drive and G+ Photos.

US$120 per month.

(Not Included: TV Set and Laptop)


Google Fiber Free Basic Internet


Up to 5 Mbps download & 1 Mbps upload. Free service guaranteed for at least 7 years. No data caps. Network Box.

US$300 construction fee (one time, or US$25 per month for 12 months).

(Not Included: Laptop)


Google Fiber - Highlights

Gigabit Fiber-to-the-Home (FTTH) Network.

Novel Market Entry Initiatives:

Collaborative partnership with local municipal authorities.

Local community engagement.

User Demand-Driven ‘Fiberhood’ Deployment.

Benchmark Pricing of US$70 per month for 1-GIG Symmetrical Internet Service. No construction fee.

Free 5Mbps/1Mbps Internet Service (at least 7 years).

Construction fee: US$300. (Note: US$30 for Provo, Utah).

Free 1-GIG Symmetrical Internet Service: Schools, libraries and public safety in Kansas City, MO/KS.

100 community organizations in Austin, Texas.

25 non-profit organizations in Provo, Utah.



Reactions to Google Fiber


Incumbents adopting Google Fiber’s User Demand-Driven ‘Fiberhood’ approach in Gigabit Deployments:

AT&T U-verse with GigaPower in Austin, Texas.

CenturyLink in Las Vegas, Nevada.

C Spire in nine Mississippi townships.

Incumbents fighting back in State Legislatures:

Example: Kansas Senate Bill No. 304 (January 27, 2014):

To prevent municipalities from, directly or indirectly, offering or providing video, telecommunications or broadband services.

Instigated by Kansas Cable Telecommunications Association (KCTA) – Comcast, Time Warner Cable and Cox.

Strong opposition from Google, et al. (Jan. 31).

KCTA requested cancellation of hearing (scheduled for Feb. 4).


Google Fiber - Expansion

February 19, 2014: Google announced it will work with 34 cities in nine US metropolitan areas on potential expansion of Google Fiber.

The 34 cities will need to work hard to earn Google Fiber.

Approved Google Fiber cities will be announced by end 2014.


Source: Google Fiber, Feb 2014

And what about Australia and New Zealand?


National Broadband Network Ultra-Fast Broadband

(NBN) (UFB)

5.5 Mbps (AU) Average Connection Speeds 5.1 Mbps (NZ)

30.1 Mbps (AU) Average Peak Connection Speeds 20.5 Mbps (NZ)

Source: Akamai, Quarter 3, 2013

Australian NBN

In April 2013, NBN Co announced it will be offering 1-GIG Wholesale FTTP services in December 2013.

1,000 Mbps download / 400 Mbps upload.

Wholesale access price: A$150 per month.

New Coalition Govt’s NBN Policy: (Sept. 2013)

Fibre-to-the-Node (FTTN): 71% pop.

Fibre-to-the-Premises (FTTP): 22% pop.

Fixed Wireless & Satellites: 7% pop.

Approx. Conversions (5 Feb 2014):

AUD150 = USD134; NZD163; GBP82; EUR99.



New Zealand UFB

Borrowing a page from Google Fiber, Chorus launched its 1-GIG FTTH community competition on NZ Labour Day (October 28, 2013).

The winning community ‘Gigatown’, within Chorus’ Ultra-Fast Fibre (UFB) deployment areas, will be announced in early 2015.


Source: Chorus, Sept 2013

http://www.google.com.au/imgres?imgurl=http://www.nzcbc2013.co.nz/files/images/content/NZCBC 2013/chorus.jpg&imgrefurl=http://www.nzcbc2013.co.nz/&h=975&w=2474&sz=257&tbnid=fbvj0bdXGgsyNM:&tbnh=48&tbnw=123&zoom=1&usg=__gct7DtGCSP3_NytxbUEyotLLhm4=&docid=dsZaei-NhN2G7M&hl=en-GB&sa=X&ei=llQ4Uv3uE6f_iAeUoIDoDg&ved=0CD0Q9QEwAQ&dur=5798

GIG Networks & GIG Services Summary


Gigabit Networks - Summary

Key Drivers for GIG Network Deployments:

Government telecommunications policies and regulations at Federal, State and Local levels.

Infrastructure competition.

Geo-demographic environment.

Community initiatives and drives.

Innovative use of public utility resources.

Innovative business initiatives and models.

‘Fiberhood’ user demand-driven deployment.

Collaborative partnership with local authorities.



Gigabit Pricing – Summary


COUNTRY

GIG NETWORK

MONTHLY FEE

(Local Currency)

MONTHLY FEE (Approx. USD)

MONTHLY FEE (Approx. AUD)

Hong Kong HKBN HKD200 USD26 AUD29

South Korea Gigabit Project KRW30,000 USD28 AUD31

UK B4RN GBP30 USD49 AUD55

USA Google Fiber (Kansas City, Provo, Austin)

USD70 USD70 AUD78

USA Chattanooga

Gig City™ EPB Fiber

USD70 USD70 AUD78

Australia NBN

(Dec 2013) AUD150

(wholesale) USD134

(wholesale) AUD150

(wholesale)

New Zealand Chorus UFB

(2015) TBA

(wholesale) TBA

(wholesale) TBA

(wholesale)

Source: Nguyen Duc, Feb 2014 Approx. Conversions (5 Feb 2014)

Gigabit Services - Summary

Still early days. Therefore, lots of opportunities to innovate and develop GIG services and applications.

In the meantime, GIG users can enjoy:

Superfast downloads and uploads. Improved productivity.

Sharper high-definition images. Smoother video streaming.

Sharing the same GIG pipe with other users, with minimal concern about capacity, speed or delay issues.

Potential GIG Applications:

High-definition real-time medical images.

Superfast upload/download businesses.

Immersive real-time communications.

High-speed cloud functionalities.

Software as a Service (SaaS).



What’s Next Then?


Ultra-Fast Broadband

Connectivity and Capacity

Next-Generation Applications and

Services

Source: Nguyen Duc, June 2012

Gigabit Community Fund

US National Science Foundation (NSF) and Mozilla launched ‘Gigabit Community Fund’ in Chattanooga, TN and Kansas City, KS/MO (Feb. 2014).

To bring together practitioners and innovators from public and private sectors to develop novel gigabit applications for education and workforce development.

Funded work must deliver real value to end-users and must be proposed in collaboration with local organizations in Chattanooga and Kansas City.

Awards ranging between US$5,000 and US$30,000.


Source: NSF, Feb 2014

Think Capacity. Think Capability.


10 Mbps

100 Mbps

1,000 Mbps

1 Gbps or 1 GIG

‘Access Pipes’


Provo City’s Promo Video “Google Fiber versus Broadband”


Provo City’s Promo Video “Google Fiber versus Broadband” (1:20 min)

http://www.youtube.com/watch?v=9QU5lHzgvK0&feature=player_embedded

Source: Provo City, Utah, Oct 2013






Acknowledgements

The author would like to thank the organisations

and people who kindly share their images on the

net that are used in this presentation.

An earlier version of this presentation was shared at the Informa

‘Connected Australia’ Conference, Sydney, 15-16 October, 2013.


Gigabit Networks

Dr Nguyen Duc Principal – EagleComms Advisory

Melbourne, Australia

Telecommunications Association Inc. (TelSoc) Lunchtime Presentation Melbourne, 25 February 2014

au.linkedin.com/in/drnguyenduc/

http://au.linkedin.com/in/drnguyenduc/



Dr Nguyen Duc_Gigabit Networks_Feb 2014

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