Mr. Florian Damas, Director of Public Affaires, Alcatel Lucent

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COPYRIGHT © 2014 ALCATEL-LUCENT. ALL RIGHTS RESERVED. ALCATEL-LUCENT — PROPRIETARY

COPYRIGHT © 2014 ALCATEL-LUCENT. ALL RIGHTS RESERVED.

PRESENTATION SUCCESSFUL IMPLEMENTED CASES AND FUTURE OUTLOOK Florian Damas, Director Public Affairs 9 December 2014


ULTRA-BROADBAND – THE NEW UNIVERSAL INFRASTRUCTURE ENABLING FUNDAMENTAL CHANGE ACROSS SECTORS

HEALTHCARE DEFENSE TRANSPORTATION ENERGY SMART COMMUNITIES

HOSPITALITY & TOURISM

STADIUM & ARENA FINANCE EDUCATION INDUSTRY

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FIRST SET OF CHALLENGES: POPULATION DENSITY & ECONOMIC ACTIVITY

Source: Economist.com, March 4th 2013 Source: Foreign Policy, March 28th 2014

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SECOND SET OF CHALLENGES: NETWORK RESOURCES & INVESTMENT CAPACITY

Match network resources (capacity, QoS/QoE, security, associated SLAs…) with rapid increase of devices, traffic, services

•  Video and WiFi drive fixed broadband consumption + Video shifting from multicast to unicast

• Mobile requires fixed backhaul and access

•  Data centers and content delivery networks are positioned closer to users

•  Development of essential services: teleworking, eHealth, eGovt, smart cities, smart metering, home automation

Network investment capacity is different in Europe compare to US

•  Bigger addressable market BUT

• Over 140 European operators with a lower level of investment (~10% turnover) compare to 4 operators in US (~15% turnover)

•  Almost exclusive power of American actors in the digital field (GAFA…) driving uptake of platforms and services

• Will European ISPs/Telcos be the only resellers of network access and access seekers in the future?

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NEW TELECOM NETWORK STRUCTURE

Retail Services (residential, public & business)

Active Infrastructure (network equipments, business & operation support)

Passive Infrastructure

End-users

Ethernet layer-2 IP layer-3

Ducts, sewers, poles Dark fibre Wavelength Passive wholesale

Active wholesale

- Wavelength (by pair) - Dark fibre - Ducts/sewers

- IPstream (IP L3) - Bitstream (Ethernet L2)

>200 B€

Investment needed Payback

Few m-3 y

5-7 y

10-15 y

20%

80%

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0 ITU-T, fixed BB subs per 100 inhabitants 40

THE ULTRA- BROADBAND CHALLENGE

CONNECTING AMERICA 100Mbps to 100M households by 2020

EU DIGITAL AGENDA 30Mbps to all,

100Mbps to 50% by 2020

BRASIL PLANO NACIONAL 160M broadband connections by 2018

INDIA NATIONAL BB PLAN 2-100Mbps for 600M households by 2020

BB CHINA STRATEGIC PLAN 50Mbps-1Gbps to all urban and 12Mbps to all rural by 2020

NEW ZEALAND UFB/RBI Ultra-fast (50-100Mbps) BB to 75% by 2019, BB for 86% of rural

AUSTRALIA NBN Ultra-fast broadband (25-100 Mbps) to all households by 2019

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AT CURRENT SPEED, DEPLOYMENTS WILL TAKE DECADES TO COMPLETE

85 years

APAC

92 years

Western Europe

77 years

NAR

Source: Infonetics Research, FTTH Council

GIGABIT INITIATIVES ARE NEEDED TO MEET THE NATIONAL TARGETS AND CONSUMERS’ NEEDS

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END USERS WILL NOT WAIT

Video-surveillance

Speed

test

Internet of things

Smart

homes

Multi-media

Wi-fi devices

Video

Gaming

CONSUMERS WANT UBB SERVICES TODAY

SPEED IS THE KEY SELLING POINT

THEY ARE WILLING TO PAY FOR IT

>100 $/month

>80 $/month

Over 1,100 communities applied to be recipient for

Google services

Source: IDATE, 2014

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ENTHUSIASM FOR COMMUNITY ULTRA-BROADBAND

Profile:

A construction company building gigabit fiber communities in The Netherlands

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ULTRA-BROADBAND DRIVES ECONOMIC DEVELOPMENT

PRINCETON, IL LAFAYETTE, LA

Due to the lack of broadband services, the largest employer left town, taking 450 jobs

Availability of fiber broadband attracted new businesses and created 1000 jobs

62% ATTRIBUTE INCREASED PRODUCTIVITY

TO BROADBAND

80% BELIEVE NOT HAVING BROADBAND WOULD NEGATIVELY IMPACT THEIR

BUSINESS

18% BELIEVE THEY COULD NOT OPERATE

WITHOUT BROADBAND

Michigan IT Department survey shows:

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FIBER-TO-THE-HOME POWERS GIGABIT COMMUNITIES

$

¥

FUTURE-PROOF TECHNOLOGY 1Gbps today, 10Gbps and more tomorrow

using the same fiber network

ECO-FRIENDLY Lowest power consumption per megabit per second

COST-EFFECTIVE High density, long reach, low OPEX,

Residential/business/backhaul, smooth migration path to next gen

COMPETITIVE ADVANTAGE Unbeatable 1G service offer, premium customer experience, marketing & branding

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FIBER TECHNOLOGIES OVERVIEW

PON

ACTIVE ETHERNET

ETHERNET P2P

EPON 1 1 Passive Being replaced by GPON/10G EPON

GPON 1.2 2.5 Passive Most widely used FTTH technology

10G EPON 1/10 10 Passive Mainly for business services

10G GPON 2.5 10 Passive No market traction

TWDM 40 40 Passive Next step for GPON

WDM 1 1 Passive Niche segment: business and MBH

TECHNOLOGY FLAVOR US Gb/s

DS Gb/s

OSP COST DEPLOYMENT

FE 0.1 0.1 Passive Being replaced by GE

GE 1 1 Passive Mainly for businesses

10 GE 10 10 Passive Next step for GE

FE 0.1 0.1 Active Being replaced by GE

GE 1 1 Active High OPEX

10 GE 10 10 Active Next step for GE

PON OLT Optical splitter

Ethernet

Switch

Ethernet

Switch

Ethernet

Switch

FCP

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DARK FIBRE WHOLESALE FIBRE CONCENTRATION POINT

Multiple fibres in the last mile

Operator #1 (GPON)

Operator #2 (GPON)

Operator #3 (P2P) Note: P2P operators may decide to position their access equipments in the street cabinet (Active Ethernet) or in the central office. First option limits the number of fibres in the feeder segment

One fibre in the last mile

Operator #1 (GPON)

Operator #2 (GPON)

Operator #3 (P2P)

Terminating segment Feeder segment Street cabinet or building basement CO

From 1 to 40 km

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SOLVING THE GIGABIT EQUATION UNDERSTANDING THE DEMANDS FOR BUILDING STATE-OF-THE-ART NETWORK

IP/MPLS

Internet, PSTN, TV head-end, cloud

NOC

CONSUMPTION TRENDS •  Real time entertainment, more unicast traffic •  Many WiFi devices are connected to fixed

lines •  More devices and services add complexity to

use, maintain and upgrade home network

ACCESS NODE REQUIREMENTS •  High capacity to provide all services to all

Gigabit users and user segments

NETWORK INTERFACE Overall aggregated traffic will increase 5x by 2018. Non blocking network interface is needed to handle the growth

1Gbps

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FIELD PROVEN GIGABIT SOLUTION

HIGHEST SWITCHING AND BACKPLANE CAPACITY

HIGHEST UPLINK CAPACITY ON MARKET – 160Gbps

ALL FIBER TECHNOLOGIES

REDUNDANCY AND RESILIENCE

7360 ISAM FX

CHASSIS TECHNOLOGY CAPACITY SCALABILITY

PtP 2x 480 Gb/s switching matrix

•  >8000 users served from a single chassis • All services and all user types converged on a single platform

16-slot 8-slot 4-slot EPON, GPON 2 x 100Gb/s to every slot

10G EPON, NGPON

10 Tb/s total system capacity

KEY FEATURES FX-16

FX-8

FX-4

1G

NEW

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CONNECT ANY SUBSCRIBER 7368 ISAM ONT EXAMPLES

7360 ISAM FX

OLT

BUSINESS/BACKHAUL

RESIDENTIAL

MULTI-DWELING

Outdoor

8 POTS and 8 GigE

G-881G

G-881G

Indoor

8 POTS and 8 GigE

Data

1 GigE

G-010G

Business

4 GigE & 4DS1

B-0404G

SFP GigE rates

Universal Enclosure

I-241W

Integrated Residential Gateway

G-240/440G

Indoor Outdoor

Data

4 GigE

I-040G

True Gigabit performance 1G

RF or IPTV

Any location, any application

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EXTEND SERVICE OFFERING OVER EXISTING NETWORKS TO ACCELEARTE ROI

BUSINESS SERVICES

Business and SFP ONT

End-to-end performance

P2P, PON,

Any-to-any redundancy

MEF certification

MPLS

PORTFOLIO AND SERVICES

Account for big part of total FTTB/H revenues:

30% in 2014

ALCATEL-LUCENT HAS PORTFOLIO AND FEATURES FOR FASTER NETWORK MONETIZATION

Average spend per business user/month:

5x residential

SMALL CELL MOBILE BACKHAUL

Fiber MBH has

2-3 x less OPEX per month than other

technologies

Leased MBH revenues in

2013:

2B $

Backhaul over ubiquitously available fixed residential network

CHOSING THE RIGHT REGULATORY FRAMEWORK IS KEY

“INFRASTRUCTURE-BASED” AND “SERVICE-BASED” COMPETITION

Network Operator

Infrastructure Owner

Full separation Vertically Integrated

Service

Active

Passive

Retail Service Provider



Infrastructure Owner

Passive Sharing

Active/Passive Sharing




Vertical Infrastructure

Provider

Vertically Integrated O

perator


perator


perator

Vertical Service Provider



Competition Infrastructure Competition Service Competition

Regulated passive wholesale

Regulated active wholesale

Regulated passive & active wholesale

Access to public infrastructure

Regulation

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COPYRIGHT © 2014 ALCATEL-LUCENT. ALL RIGHTS RESERVED. 19 | Open Networks for Industry & Public Sector | Florian DAMAS | September 2008

OPEN NETWORK STRUCTURE, ROLES AND RESPONSIBILITIES

-  Designs and builds the network

-  Manages site & civil engineering work

-  Owns the fibre infrastructure

Infrastructure owner

Network operator

End user

Rights of way

Rights to operate the network

Rights to offer services on Network Operator

portal

§  Owns the network (edge/core/access) equipments up to the customer premises

§  Operates the network

§  Manages the delivery of the services on behalf of the retail service providers

§  Provides connectivity to end-users & retail service providers

§  Provides end-user portals for service subscription (self-registration & auto-provisioning)

§  Interconnects the network to the Internet backbone and to other telco networks

§  Owns the service and the application servers

§  Operates the service

Provides end-user support for delivered service

Provides customer support for service delivery, connectivity and network issues

Provides customer support for fibre


20 | FTTH Council – PPP and Regulation | February 2009

THE C4 ENERGY CASE

Kristianstad Municipality

C4 Elnät AB Owns

Passive Infrastructure (trenches, ducts, fibre)


Active Network (network equipments,

business & operation support)

End-users

Construction companies

Network Operator

Retail service providers

Tender

Owns

Build

Owns

Operates

Fees

C4 Energi AB

100%

Internet Telephony TV

Kristianstad in Sweden: 33 000 people (city) 76 000 people (area)

Objective: 10 000 subs (connected)

Tender & concession contract

Provides

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THE EWZ CASE IN ZURICH

City of Zurich

ewz Telecom





End-users


ewz.zürinet


Tender

Owns

Build

Owns

Operates

ewz

100%

Retail Business & Residential Service providers ewz Wholesale SP

ewz.optical line

ewz.fiber

Note: ewz works with the Zurich real-estate organizations to deploy fibre [the homeowners association Zurich (HEV), the Swiss Association for Housing (SVW, Section Zurich), the Swiss Association of Real Estate Management (SVIT) and the Association of Zurich real estate companies (VZI)]

Provides


THE " FLUGFELD BÖBLINGEN/STUTTGART " URBAN AREA CASE

+





End-users


Network Operator


Tender

Own

Build

Owns

Operates

Fees

Stadtwerke Sindelfingen and Stadtwerke Boeblingen offer triple play services to the 7,500 inhabitants of the new 80 ha "Flugfeld Böblingen/Stuttgart" urban development area. The two utility companies are jointly developing and marketing the "Flugfeld" area.

Tender & concession contract

Provides

Retail Service providers VSE NET Wholesale SP

53%

100%

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“Economic development and growth for our customers across the country is the goal of this project…Alcatel-Lucent’s recognized expertise in fiber provides us with efficient access solutions to enhance customer service levels in regional communities”

Jacques Beauvoine, Chairman Axione. January 7, 2009

AXIONE OPERATOR, FRANCE (FILIAL OF BOUYGUES CONSTRUCTION)

Challenge

§  Goal of economic development and growth for customers across the country §  Need to enhance customer service levels in regional communities

Solution

§  ISAM GPON + IP/MPLS

Benefits

§  Ability to provide business customers with high-quality access to voice, video and data services §  Successfully address future network requirements §  Improved Axione operations and ability to meet growing business needs

Axione is committed to bridging the digital divide and boosting economic and social development in regional communities

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EPB CHATTANOOGA UTILITY, US

Challenge

§  Revenue opportunity for a utility company §  Become a viable competitor in the telecommunications market

Solution

§  ISAM GPON + other Triple Play Elements

Benefits

§  Offer advanced TV services, and HD content §  Enhanced user experience and user centric features §  Revenue for EPB

The fastest city in the world – 1Gb/s residential service for all

“FTTH will provide Chattanooga with the tools, resources and technology it needs to become a leading competitor in today’s marketplace. Using the giver optic network we’re putting in place for our new Smart Grid allows us to also offer the most advanced communications services, like high speed internet, video entertainment, and digital phone to our community.”

Harold DePriest, President and CEO of EPB. September 24, 2008

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Chattanooga’s 100% Fiber Optic Network

The fastest city in the world

Deployed by EPB utility for introducing Smart Grid

Upgrade of electric distribution network together with fiber optics roll-out

100% fiber coverage

1Gb/s bandwidth offering

Take-rate: 15% only 2 months after launch!


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-‐

100,000

200,000

300,000

400,000

500,000

600,000

kW

Hour

EPB Residential August 2009 Hourly Load

Service Availability

Reduce outage time by up to 40%

Sustainability

Reduce usage peak by 100MW -‐

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

kW

Hour

EPB Residential July 22, 2009 Hourly Load

Economic Growth

Attract businesses and create new jobs

Service Attractiveness

More options for next generation communication services


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NATIONAL BROADBAND PLANS & ASSOCIATED MODELS

GOVERNMENT CONTROLLED INFRASTRUCTURE

INCUMBENT SPONSORED WITH GOV FUNDING

PRIVATE LED WITH GOV SUPPORT

PRIVATE INVESTMENT –HEAVY REGULATION

PRIVATE INVESTMENT-LIGHT REGULATION

PUBL

IC I

NTE

RVEN

TIO

N

Adapted -ADL Analysis

1

2

3

4

5 AUSTRALIA

JAPAN, LATVIA, LITHUANIA, SOUTH KOREA, MALAYSIA, INDONESIA

SINGAPORE, FRANCE, RWANDA,NEW ZEALAND, POLAND, MEXICO, THAILAND , BRAZIL, PERU, COLUMBIA

GERMANY, NETHERLANDS, UK

US, UAE, HONK KONG

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•  The National Broadband Network (NBN) is Australia's first national wholesale-only, open access communications network that is being built to bring high speed broadband and telephone services within the reach of all Australian premises.

•  The NBN utilises three technologies; fibre, fixed wireless and satellite.

•  FTTH to 93% of population (9M HH), BB wireless to 7% in 8 years.

•  NBN assets: passives, access nodes, Ethernet aggregation.

•  Several bitstream delivery points.

•  Architecture: mainly FTTH, some FTTB.

•  Initial plan is for every home, school and workplace in the country to have access to the NBN.

AUSTRALIA NBNCO NATIONAL BACKBONE: THE PRE-

REQUISITE TO SUCCESS

•  Regional Backbone Blackspots program

•  Six priority locations were identified following a public consultation process and selected based on a number of factors including:

•  the extent to which the location is served by competitive optical fibre links

•  the potential population that can benefit from the infrastructure

•  the presence of social infrastructure, industry and the level of economic activity in the location the interest in the market to engage in the competitive assessment process, and

•  the likelihood of the deployment in the absence of Government funding.

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THE RESTRUCTURING HOA

•  Telstra/NBN Co Heads of Agreement signed on 20 June 2010.

•  Regulatory certainty for Telstra part of the deal = this was not a pure Telstra/NBN Co discussion

•  $9bn NBN deal is over 30 years, covering infrastructure rental, and compensation for migrating customers

•  Successful implementation of a deal shaped by the HoA dramatically changed Telstra’s structure, markets and (to some extent) investment strategies

•  From Telstra’s side, was subject to shareholder agreement

CHANGE IN TECHNOLOGY MIX

•  NBN announced in Q2 2014 an agreement with Telstra to deploy VDSL/Vectoring from the cabinet to speed up roll-outs

Active Sharing




Service

Active

Passive

Regulation Regulated active wholesale

NBNco: Vertical

Infrastructure Provider

AUSTRALIA NBNCo

Government Controlled Infrastructure

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MEXICAN OPEN WIRELSS ACCESS INITIATIVE

•  The underlying driver: Grow the Economy • Macro-economic indicators are excellent • With growth as absolute priority, the Mexican reform encompasses : education, transport, energy … • For Telecoms, this has been translated to give access to affordable Telecom services to all.

•  The way to do it • Aim: bring mobile Broadband price as close as possible as Mobile Voice price • How: Reduce the network TCO by 20 times: •  Allocate Digital Dividend •  Generalize a wholesale model •  Use PPP model and push other public supply side initiatives

•  Project’s details • All 700 MHz will be allocated to one wholesaler with stringent coverage obligations • A lean, flat IP, low cost wireless bit stream factory will be built on top • A non discriminatory wholesaler who cannot commercialize in the retail market • Paradigm shift from infra based competition to service-based competition

98% coverage

Private led with Government support 3

Active Sharing




Service

Active

Passive

Regulation Regulated

active wholesale

MEXICAN DD LTE

WHOLESALER

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NEW ZEALAND ULTRA FAST BROADBAND & RURAL BROADBAND INITIATIVE •  The government’s ultra-fast broadband (UFB) initiative has been an important

industry talking point since the November 2008 election. Key facts:

-  Government has committed to invest up to $1.35billion

-  Objective is to accelerate the roll-out of UFB to 75 percent of New Zealanders over 10-years

-  In the first six years, will concentrate on ‘priority broadband users’ such as businesses, health service providers and schools.

-  UFB is defined as a fibre-to-the-premise broadband service providing downlink speeds of at least 100 Mbps and uplink speeds of at least 50 Mbps.

•  The government’s complementary program for rural communities is called the Rural Broadband Initiative (RBI).

Key facts:

-  Goal to deliver high speed broadband to the remaining 25 percent of the population

-  Within six years, 93 percent of rural schools will receive fibre, enabling speeds of at least 100Mbps, with the remaining seven percent to achieve speeds of at least 10Mbps

-  Over 80 percent of rural households will have access to broadband with speeds of at least 5Mbps, with the remainder to achieve speeds of at least 1Mbps.

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NEW ZEALAND STRUCTURAL SEPARATION - TELECOM

•  Any company partnering with the government to provide wholesale ultra-fast broadband is not allowed to provide retail telecommunications services.

•  Telecom was a vertically integrated company, but operationally separated into three business units: the network business (Chorus) , the wholesale business (Telecom Wholesale) and the retail business (Telecom Retail)

•  So it can be a partner in the ultra-fast broadband initiative, it has proposed to split and become two totally separate companies “Telecom2” and “Chorus2”.

•  What does structural separation mean?

•  Telecom split into two companies.

-  Chorus2 undertakes network and wholesale business. Chorus2 will be responsible for both the copper and fibre network.

-  Telecom2 undertakes retail functions and operate Telecom’s mobile networks.

•  Chorus2 and Telecom2 have separate functions, staff and boards. They will have separate shares and are separately listed.

Active/Passive Sharing TELCO

M2

Retail

CHORUS2 (Fiber & Copper Network)

Wholesale Business


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SINGAPORE NEXT GEN NBN

Singtel Passive Infrastructure (trenches, ducts, fibre)


Active Network (network equipments, business & operation support)

End-users

OpenNet

Owns, Builds & Operates

15 %

•  The Next Gen NBN aims to provide a nationwide

ultra-high speed broadband access of 1Gbps and more, to all physical addresses including homes, schools, government buildings, businesses, hospitals and NBAPs (Non Building Access Points).

•  Retail Service Providers (RSPs) offer services over the Next Gen NBN to businesses and consumers. The effective open access industry structure which IDA has implemented for the Next Gen NBN allows RSPs to purchase bandwidth connectivity at non-discriminatory and non-exclusive prices, and compete on a level playing field to provide competitive and innovative services to end-users.

•  Examples of consumer services that have been deployed by RSPs over the Next Gen NBN include Interactive Internet Protocol TV, High-Speed Online Gaming, Online Education and Home-Based Work.

•  For businesses, some Next Gen services that have been rolled out include Cloud Computing, High-Quality Video Conferencing, Digital Signages, Multimedia Kiosks and Remote Offices.

NetCo deployment milestones - 31 Dec 2010: 60% - 30 Jun 2012: 95% - Jan 2013: 100% (Universal Service Obligation) OpCo targets by 2015: - 330K residential subs (30% of total households) - 80K business subs

30 %

Provides

Designs, Builds & Operates

Axia NetMedia

Singapore Press Holdings (SPH)

SP Telecom. (SPT)

30 %

25 %

Retail Service Providers

Nucleus Connect

Owns

StarHub Owns

Fees

Fees

(Note 1)

Note 1: AssetCo owned by a registered business trust or similar structure approved by IDA; Singtel to reduce unit holding in AssetCo to 25% within 60 months

Note 2: Singtel to transfer relevant existing assets to AssetCo within 24 months

Structural Separation

Operational Separation

Pay service charges

AssetCo Owns

(Note 2)

OpCo

NetCo

Subsidy up to SG$ 250M

Subsidy up to SG$ 750M

Private led with Government support

3

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ORANGE POLAND (TPSA) REGIONAL PPP •  Government procurements •  TP signed a co-operation agreement with Hawe SA and

Alcatel-Lucent to develop broadband infrastructure in Poland, which is now an SPV approved by EU •  Set out a market solution •  Propose consortium structure that meets

stakeholder interests •  Building the consortium business case

•  Core: passive WDM

•  Distribution: active IP/MPLS

•  Access: tbd by local telco service providers

HAWE

TP Teltech

RESIDENTS BUSINESS

SERVICE PROVIDERS

SPV/NEWCO

Government

GOVERNMENT

Remarks: CAPEX structure - 15% active network (nodes and PM) - 85% passive network (ducts and fibre)

Alcatel-Lucent

Asset contribution Start equity Flow of equity over time


Active/Passive Sharing




Vertical Infrastructure

Provider

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TWDM-PON OPPORTUNITIES

•  Single fibre outside plant for multiple addressable markets (fixed broadband, mobile backhaul, smart cities…) and customers (residential, business, public administration…)

• New ladder of investment

•  Technology agnostic

•  Service-neutral co-location facilities

•  Lead to a nationwide open access passive fibre plant via wavelength allocation

• New financing & revenue models

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WAVELENGTH WHOLESALE TWDM-PON

TWDM PON

SMALL CELLS BACKHAUL

RESIDENTIAL FTTH

MICRONODES BACKHAUL

BUSINESS USERS

GPON

10G/2.5G

10/2.5G 10G/10G 2.5G/1.2G

2.5G/2.5G

Operat

or 4

Operator

2&3

Operat

or 1

TWDM PON

Wavelength unbundling per addressable market Wavelength unbundling per operator

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ACTIVE WHOLESALE BITSTREAM AND IPSTREAM

Local Exchange

Customer Premises

Metro POP

Regional POP

National POP

Access Seeker

Cabinet

R Supports any service, incl. SLAs

R Contention happens (Access Provider + Access Seeker networks), Access Seeker buys committed and excess capacity per user

R Improved scalability in terms of interconnections

Access Seeker

Local Exchange

Customer Premises

Metro POP

Regional POP

National POP

Cabinet

R Supports any service, incl. SLAs (note; no L2 transparency)

R Contention happens (Access Provider + Access Seeker networks), Access Seeker buys committed and excess capacity per user

R scalability in terms of interconnections

R Flexibility for Access Seeker (no need to perform IP configuration)

L2 equipment L3 equipment (Router)

L2 Bitstream (generic case)

L3 IPstream

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NEW LADDER OF INVESTMENT FOR ANY SERVICE PROVIDER

• Market should be open to any service provider (and not only Telcos) to give equal opportunity to deliver services directly to users

•  Beneficial to increasing up-take and fostering digital service competition

• Outpace the net neutrality debate

•  Each access network should be backhauled to regional IXPs

IPstream

Bitstream

Wavelength

Investment

Time

National

Regional

Metropolitan

Local central office

National

Regional

Metropolitan


Metropolitan


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REUSABILITY OF COPPER ASSETS

•  FTTdp (Fibre to the distribution point) ensures the transition between fibre to copper for the last 10s or 100s meters: manholes, poles, curb, building basement or front door

• Objective: reduce time-to-market and costs

• New technologies such as G.Fast and XG-Fast require FTTH active equipments and can be compatible with passive and active wholesale

• Upload and download speeds are configurable

Technology Frequency Maximum aggregate speed Maximum distance

G.Fast phase 1* 106 MHz 700 Mbps 100 meters

G.Fast phase 2* 212 MHz 1.25 Gbps 70 meters

Bell Labs XG-FAST** 350 MHz 2 Gbps (1 Gbps symmetrical) 70 meters

Bell Labs XG-FAST with bonding***

500 MHz 10 Gbps (two pairs) 30 meters

* Industry standard specifications. G.fast allows for upload and download speeds to be configured by the operator.

** In a laboratory, reproducing real-world conditions of distance and copper quality.

*** Laboratory conditions.

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FIBRE’S CHANGING ROLE

• New access networks roll-out is not an evolution but more the building of a new essential infrastructure for the 40 years to come. On 70% of the EU territory, a single infrastructure is viable.

• Need for more fibre, as deep as economically viable, which has all the characteristics of an essential infrastructure

• One fibre outside plant supports both passive and active wholesale

•  TWDM-PON increases addressable markets and revenue forecasts

•  TWDM-PON ensures further competition among ISPs and service providers

•  Complimentary G.Fast and XG-Fast technologies for copper asset reusability in the last meters without being detrimental to performance and speed of fibre

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Florian Damas

Public Affairs Director

[email protected]

+32 477 96 05 44

Mr. Florian Damas, Director of Public Affaires, Alcatel Lucent

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Transcript of Mr. Florian Damas, Director of Public Affaires, Alcatel Lucent