f5G & Oi

October 2020

Alberto Boaventura Ger. Estratégia e Arquitetura de RedeDiretoria de Estratégia, Tecnologia e Arquitetura de Rede

Broadband World Forum 2020

Number of Global Fixed Broadband Users per Technology (in Million)

Average Fixed Broadband Throughput

● Analysis conducted by ITU: Globally an increase of 10% in fixed broadband penetration yields an increase of 0.8% in GDP.

● Analysis Group: Communities in which more than 50% of the population have access to FTTH broadband the per capita GDP is between 0.9% and 2.0% higher than areas without fiber broadband.

● The values of Cisco VNI are consolidated for all speed plans and technologies of the fixed network (FTTx and xDSL), whose average values are shown;

● The main message is throughput growth indicating increasing adoption of FFTxtechnology;

World Fixed Broadband Trend

126

136 145 164 180 196 206 215

108

150201 304

399

479

573626

387 382 369327

284 267 254 244

2012 2013 2014 2015 2016 2017 2018 2019

Cable FTTH xDSL

Source: Ovum Omdia

Rapid Growth of Global Fiber Users

110

59

142

123

0 Mbps

40 Mbps

80 Mbps

120 Mbps

160 Mbps

2018 2019 2020 2021 2022 2023

Global Latin America North America Western Europe

20%

22%

20%

30%

CAGR

Source: Cisco VNI 2020

Global Number of Fixed Broadband Subscription per 100 inhabitants

Fixed Broadband Distribution (Mbps) in Brazil

Fixed broadband opportunity in Brazil

141516

1717

1820

24262727272829

3030

31323232323334

3637

393939394040

414242

434343

46

Colombia

BRAZIL*

Chile

Czech…

Latvia

Lithuania

Austria

Slovenia

New Zealand

Spain

Japan

United States

Luxembourg

Greece

Sweden

United…

Germany

Denmark

France

DSL Cable Others Fiber

81%

12%7%

0% 0% 0%

67%

13% 11%

4% 3% 2%

0-60 60-120 120-180 180-240 240-300 >300

1Q2019

1Q2020

Although low penetration, Brazil has a big space to grow. Currently, there is a pressure for more throughput allowed by powerful

FTTx deployments

Brazilian Regions Oi Fixed Broadband Offering

● Oi mainly operates in the most expressive regions with economic potential of almost 70% of the Brazilian GDP and addressing population of almost 80%;

● More than 388 thousand km of fiber (2x more than the second competitor)

● More than 43 thousand km of pipelines - The country's largest infrastructure

● More than 2300 municipalities served with fiber, covering more than 35 million households (1000 households more than the 2 competitor)

● FTTH in 125 cities (end of @ Q20) with more than 7 million HP and more than 1.3 million HC.

● Approx. 400 thousand HPs and 100 thousand HCs activated per month

Where Oi is

67%78%

33%22%

GDP Population

Region 1 & 2

Region 3

33,6%

46,4%

76,5%

97,4%

100,0%

99,8%

99,9%

100,0%

100,0%

100,0%

< 10k

10k-50k

50k-100k

100k-500k

> 500k

xDSL Tx Fiber

Agribusiness & Mining

Social Services Other Services CitiesEntertainment & Communication

Industry & Retail

$759 $1462 $1699 $1674 $2048 $4059

New 5G Services (like ) impact in worldwide economy

6,40%4,10% 3,50% 2,30%

6,50%4,60% 3,70% 2,40%

4,70% 5,60% 4,50% 3,50%

11,50%

4,80% 3,40% 4,20%

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According to IHS Markit 2017, 5G will have a direct impact on all sectors of the economy with the generation of $ 13.2 trillion in 2035. This represents about 4.6% of all revenue generation in 2035;

It will also bring 22 million new jobs worldwide in the coming decades;Source: IHS Markit 2017

Infrastructure Virtualization & Digital Transformation Ecosystem & Innovation

● Spectrum: Costs associated with new radio frequency spectrum. Ranges for each use case: eMBB, URLLC, mMTC. 100 MHz and 400 MHz carriers for FR1 and FR2 respectively;

● Network Densification: It is estimated 60x more sites than previous networks. Still, Brazil has between 10% to 30% of sites per inhabitant in relation to countries like China, Germany, Japan etc.

● Fronthaul: Massive MIMO and mmWave will require above 25 Gbps per base station.

● Glassification: Densification and Capacity, there will be an explosion of demand for fiber. For example, for a density of 100 Sites per km2, there is a need for 20-50 km of fiber per km2.

● Cloud Native. Transformation of the Network of PNFs (Physical Network Functions) to VNFs (Virtual Network Functions) and Containers (Kubertnetesand Micro-services);

● Edge Computing: Edge computing for latency-sensitive applications: games, autonomous vehicles, virtual / augmented reality;

● People and Governance. Transverse changes in network management with the need for new skills in engineering, IT and operations;

● Operation: Customer Centric and not Network Centric, focusing on business impact, CSAT (Customer Satisf. Score) and fast life cycle with Betatesting of Solutions against Five-Nines Specification with management based on network and MTTR metrics,

● Ecosystem Consolidation. User experience in all environments with “5G like” and complementary access and broadband technologies, such as Wi-Fi 6, FFTx etc.

● Product Development: Non-linear and Agile processes, different from the rigid concept of Watterfalls;

● SDK. Need to create flexible architecture for exploiting 5G network network enablers through open APIs;

● Devops. Creation of Market Place and programs to develop partnerships and crowdsourcing;

● Vertical. Need for knowledge of the verticals value chain to explore 5G's potentials and opportunities. Partnerships and private networks can accelerate the monetization of investments;

Key Crictical Success Factors for upcoming 5G Services

Cloud & Edge Computing

Key Technologies for Upcoming Fixed Architecture Framework

10GPON Wi-Fi6 Flexible Optical SDN+NFV AI

● 10 Gbps throughput

● Symmetric down and up streaming

● Higher fiber density

● Low latency

● Indoor Coverage

● Low battery consumption (comparing to 5G)

● Higher modulation scheme: 1024QAM

● Massive MIMO and UM-MIMO

● Higher throughput 1-10 Gbps

● Higher number of users

● Higher throughput granularity ONT Network

● High Availability

● Ultra low latency

● Massive Connectivity

● Network connection/context aware

● End-to-end service orchestration and assurance

● Network Slicing

● AIOps

● Real-time adaptive networks

● Intelligent network slicing management

● Service prioritization and resource sharing.

● Automatic End-to-end service orchestration and assurance

● AI Application Identification and Acceleration

● Wi-Fi slicing and WMM scheduling

Network Centralized Control & Automation

Network Flexibility & Scalability

New Higher Throughput Broadband Technologies

What is F5G?

https://www.etsi.org/events/1713-2020-2-fibre-to-everything-launching-the-next-generation-of-fixed-networks-with-etsi-f5g

Source: ETSI

F5G – on the Ground

5G – in the Air

ITU

3GPP GSMA

Wireless

Frequency & Site

Standard & specification Ecosystem & Industry development

Frequency & regulation

ITU

EcoSys

Wireline

Fiber & Premise

Physical Specification

Industry development

ETSI F5G

Generation definition& technical specification

Leaf: Cloud Builds "Computation" & AI Builds "Intelligence"

Trunk: F5G builds ’transportation’

Root: both 5G & F5G build “connection”

F5G+5G build “connection + transportation”to foster the Intelligence and Computing capability

F5G+5G – Building a fully connected, intelligent world

VideoCloud

Source: Huawei

Government Cloud

Financial Cloud

MedicalCloud

GaamingCloud

Others

Use Case: Premium Private Line

Critical Mission Automation Auto-Provisioning Service Aware Quick Rollout● High Availability (>99.99%)

● Physical Insulation

● Guaranted Throughput

● End-to-end service orchestration and assurance

● Zero-touch

● Customer Portal

● SLA Customized by hour and day of week;

● Throughput by demand

● KPI & SLA Reports

● Network Resource Information

● E2E Resource & QoS Control

● CPE Plug& Play

NFVI

VNFM

NFVO

NFVI

VN

Fs

SDN

C

OTN Switch

LSO/E2E Service Orchestration

OTN Switch

Customer Ato-Provisioning Portal

KPI ReportSLA Report

EdgeCloud

E2E OTN Network

Backbone AccessAccess

Office & CloudApplications

Industrial & Edge Applications

5 Star service basead on SDN Optical Network, providing: Low latency; Auto-provisioning; Service Aware with SLA/KPI Reports; E2E Orchestation;

Private Line Pilot

PHASE 4PHASE 3PHASE 2PHASE 1

● Single Domain

● Field Test

● Main functionality tests and verification

● Multiple Vendor Domain

● SDN & Line Card from different vendors

● Multi-vendor Integration tests

● Local Customer Pilot

● MVP Journey Test

● Customer Satisfaction Evaluation

● Long Distance Pilot (two sites distance over 3000 km)

● Access & Backbone e2e Provisioning

● Customer Satisfaction Evaluation

NFVI

VNFM

NFVO

NFVI

VN

Fs

SDN

C

OTN Switch

LSO/E2E Service Orchestration

OTN Switch

Customer Ato-Provisioning Portal

KPI ReportSLA Report

EdgeCloud

E2E OTN Network

Backbone AccessAccess

Office & CloudApplications

Industrial & Edge Applications

The overall pilot will take 4 phases in order for checking: technology, integration, service journey, customer satisfaction;

Alberto Boaventuraalberto@oi.net.br

Thanks!Obrigado!

Q&A