Main Distribution Frame

IncumbentLocal Switch

New EntrantLocal Switch

PhoneNetwork

PhoneNetwork

LocalLoop

Link Reconfigured

(

Main Distribution Frame

IncumbentLocal Switch

New EntrantDSL AccessMultiplexDSLAM

PhoneNetwork

xDSL Modem

PC

(

*

Network SolutionsOption 2: Shared Local Access to the Local Loop Shared Access use of 'Splitter'

Main Distribution Frame

IncumbentLocal Switch

New EntrantDSL AccessMultiplexDSLAM

PhoneNetwork

xDSL Modem

PC

LocalLoop

Splitter/Microsplitter

Splitter

(

*

Network SolutionsOption 3: High-speed bit stream access

Main Distribution Frame

IncumbentLocal Switch

IncumbentDSL AccessMultiplexDSLAM

PhoneNetwork

xDSL Modem

PC

LocalLoop

Splitter/Microsplitter

Splitter

New EntrantNetwork

Bit stream access

Transmissionservice (optional)

(

*

UALL Components

LAC Collocation Area

Main DistributionFrame

Hand-overDistributionFrame

DSLAM

PSTNAccessMux

Backhaul

DSLModem

Tie Cable Internal

Tie Cable External

Local Access Provider/Incumbent Premises

X

X

Customer Internal Wiring

NTP Network Terminating Point

LAC Distant Collocation Premises(OLO/SP)

E

L

E

Splitter Frame

E

IncumbentSwitch

IncumbentDSLAM

BroadbandAccess Network

Bit-streamService

BroadbandAccess Network

Backhaul

ISPs

ISPs

ISPs

Microfilter

Splitter

(

*

UALL products Circuit provisioning relatedMetallic Path Facility (MPF)Share Access (High Frequency Path) using Splitter(SPT)Tie Cable Connecting Service - MDF Side (TI-CON-MDF)Tie Cable Connecting Service - HDF Side (TI-CON-HDF)Bitstream Service Plan and Build relatedLocal Access Provider Exchange Area Data (EAD)LAC(OLO) Collocation Facility Plan & Build (OLO-ERM)Hand-over Distribution Frame (HDF)Internal Tie Cable (TIE-I), External Tie Cable (TIE-E)Local Access Provider Egress (Backhaul) Set-up Service (APE)Local Access Provider Digital Private CircuitOLO Operator External Tie Cable Pull Through Service (PTS)Capacity forecast and reservation Service (CAPFOR)Addition to xDSL Terminal Recommended Equipment List (ATREL) OperationalSite VisitLocal Access Provider Line Characteristic Estimate (LCDE)Spectrum Plan Policing & Enforcement (SPECTRUM)Line test - In service (LT-IS)

*

Business Models for UALL

ServiceCustomer

Agent

Local AccessProvider/Maintainer

Tie Cable Provider

LocalAccessCustomer

Broadband AccessProvider/Maintainer

Primary Service Provider

Collocation PremisesProvider/Maintainer

Backhaul Provider

BroadbandAccessOwner

CableManager

Local Access Network PlanPlanning Information & performance measures

Local Access Network PlanPlanning Information & performance measures

*

The ULL Group within ETPPhase I finalised in June 2000Focus:Full unbundling (Splitters & Bit stream not addressed)CollocationIndustry best practiseIndustry policy recommendation

(www. etp-online.org)

*

OSS related issuesRole based Business ModelProcesses between roles

Role of Cable Manager is important

ServiceCustomer

Agent

Local AccessProvider/Maintainer

Tie Cable Provider

LocalAccessCustomer

Broadband AccessProvider/Maintainer

Primary Service Provider

Collocation PremisesProvider/Maintainer

Backhaul Provider

BroadbandAccessOwner

CableManager

Local Access Network PlanPlanning Information & performance measures

Local Access Network PlanPlanning Information & performance measures

NewEntrant

IncumbentOperator

*

OAM processes related issuesProcess Lifecycle:

Provisioning processes are complexFlow diagrams in annexes to Deliverable 1Automation essential (practical & cost driven)E-commerce technologies recommended

Regulatory - Industry Processes

Local Access Service Establishment Processes

Local Access Service Definition and Technical Principles

Local Access Service Administration Processes

Local AccessService OperationProcesses

*

Economic issues and costing principlesEconomic issues:Making Access a business in it own right ?Separation of Access into a business / trading division ?The role of automated OSS interfaces Alternative technologies for access to bandwidth and the demand for ULL ? The future of ULL?Costing principles:Cost accounting methodologies and charging principlesLLU specific set up and running costsAllocating costs and definition of different unbundling charges Rational for assigning costs to Connection and/or Rental chargesFault and repair costs/prices Geographical average

*

Recommendations to EURESCOM shareholdersIntroduction of the EU requirements for unbundled access to the Local Loop has significant business impactsStructuring the access as its own business is possibleAlternative access technologies for bandwidth exist but only few of them are capable of decreasing the importance and the demand for ULL in the short runThe ULL cost principles assumptions have considerable variation across Europe Historical cost models unlikely to be applicable in ULL The ULL impacts to OSS are substantial Considerable cost savings possible with automated transaction tools

*

Recommendations for further studyDefine ULL processes in more detailDefine automated OSS interfaces for ULL servicesDefine XML e-commerce interfacessupport for both B2B and e-commerce Hub modelsWork with ETSIMore substantial economic cost modelling of ULLReview the P614 and P901 studiesto take account of the significant development and set-up costs of OSS for ULL

In this arrangement a third party rents the Local Loop from the Incumbent (LAP) for its exclusive use. It may subject to national regulations use this loop for telephony and data services.Example iThe customer wishes to change telephone and/or leased line service supplier, and the new entrant uses an unbundled local loop to take over the subscriber from the incumbent and to provide competitive services. (As noted above, few new entrants now restrict themselves to a simple telephone service offering of this type; they prefer to provide broadband data services or a multi-service voice and data offering.)

Example ii) The new entrant uses an unbundled local loop to provide high speed data service to a customer over a second line, using any type of xDSL modems. The customer retains the incumbent as provider of telephone services on the first line.

In practice the business model, physical and technical arrangements are more complex than described in the EU paper. In this form of access, the incumbent operator continues to provide telephone service, while the new entrant deliver high speed data services over the same local loop using its own high-speed xDSL modems. Telephone traffic and the data traffic are separated by means of a splitter before the incumbents switch. The local loop remains connected to, and part of, the incumbent's switched network. Note that some xDSL technologies may require the provision of more than on pair.

This type of access may provide the most cost effective solution for a user wishing to retain the telephone service being provided by the incumbent, but seeking a fast internet service from an Internet Service Providers (ISP) of his or her choice. The ISP has full control of the commercial and technical conditions of the ADSL service that it makes available to its users.Two customer premises technical solutions exist: the first uses a splitter provided by the incumbent, and the second uses a micro-splitter supplied by the customer

High-speed bit stream access refers to the situation where the incumbent installs a high speed access link to the customers premises (e.g. by installing its preferred ADSL equipment and configuration in its local access network) and then makes this access link available to third parties, to enable them to provide high speed services to customers. The incumbent may also provide transmission services to its competitors, using its ATM or IP network, to carry competitors traffic from the DSLAM to a higher level in the network.

This type of access does not actually entail any third party access to the copper pair in the local loop. This model, based upon the definition of roles, can be used to model different business arrangements for the supply of broadband access to the internet.

The roles shown above are defined below, together with an analysis of the organisations that might perform those roles.The advantage of the role approach, first advanced by the TINA-C consortium and adapted by EURESCOM P811 to regulatory interconnect, is that the processes that are operated between the roles are mostly independent of which organisation actually performs that role. A similar approach is being adopted by both the DSL Forum and the TeleManagment Forum to model DSL provisioning (Bitstream).

This approach means that industry standard interconnect processes can be defined between roles. These processes are show above as arrows between roles that represent operational processes. Different business arrangement will lead to different organisation performing these processes.A simple mapping of these roles is shown below for the case where the incumbent operator is providing the local loop, the back-haul circuits, and the collocation premises to a competitive new entrant operator in which they place their Broadband Access Network.

The introduction of the EU requirements for Unbundled Access to the Local Loop will have profound impact on incumbent operators. There is a case for structure the access business in its own right and to separate from the traditional services that use it such as PSTN. This would involve the definition of precise Local Access services.There are a large number of alternative access technologies. Of interest is the move to mobile services with their own Radio access networks. However in the short run few of these technologies are likely to abate the demand for Unbundled Local Loops. Those most likely to impact are cable TV and LMDS.The costs models being used across European have considerable variation in assumptions, and it is questionable whether the historical interconnect cost models are applicable to Access Networks with heavily depreciated assets.The impacts of ULL on Operational Support System are substantial. The economic case is examined for the automation of interconnect OSS transactions where it is concluded that considerable costs saving are possible D1:It is clear that the initial solutions deployed in some countries will need to be enhanced to take account of the broader requirements for UALL demanded in the recent EU mandate. Such work could benefit from a European level project to develop common technical solution for inter-operator interfaces for UALL Ordering/Provision Repair and Billing. Specifically: Define UALL processes in more detailOne of the focuses of a possible follow-on project could be to define in more detail than possible in this strategic study the processes needed for Ordering/Provision, Repair and Billing. As some work is being carried out in the DSL Forum and the TeleManagement Forum this might simply be a adaptation or localisation of a generic model produced elsewhere. Define XML e-commerce interfacesWork in EURESCOM project P908 has shown there to be considerable value in defining the transactions to support the processes in XML. This approach gives implementation precision, and allows physical interfaces to be constructed in several technologies; ranging from Browser interfaces to CORBA, FTP and email solutions. Support both B2B and e-commerce HUB modelsExperience in the US shows that the e-commerce solution will need to cover both peer to peer Business to Business (B2B) solution and hub based solutions. In Europe GSM already has a hub based solution for settlements which is used by some operators. Work with ETSIPrevious work in EURESCOM on OSS interconnect has not involved ETSI at the early stages. Because of ETSI's preferred status in the EU ONP directives, it would now be appropriate to carry out any project work in conjunction with a ETSI project. If a EURESCOM project on these issues were started, it could be viewed a the core technical group to get the results developed to the required timescales in a manner similar to that adopted for the ATM MoU. Optical solutions in the local network. Work done in this project should look at fiber optics in the unbundled local access.It should be noted that such a work-programme would result in ETSI standards that would have legal impact on solutions adopted in each member state.

D2:Make deeper studies of the economic impact This short strategic study has only had time to identified at the macro level the impacts that UALL has on the economics for both the incumbent operator and his competitors. The project recommends that further more substantial study of this work area is carried out.A check of P614, P901Previous EURESCOM studies P614, P901 have not taken full account of the significant development and set-up cost of Operations Support Systems for Unbundled Access. The projects recommendations is that check is done of those projects result with focus on OSS.Automation proposal for Unbundled Access OSS TransactionsThere appear to be considerable potential cost saving available from defining automated OSS interfaces for ULL services. It is recommended that a follow project should address this opportunity using the results from P1042 Deliverable 1 and P908.