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Course of Lectures about
Optical Information SuperhighwayConstruction Core Backbone network Hotspot Metro network Destination FTTH
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Ren Hailan
Wuhan Research Institute of Post &Telecommunication
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Agenda
Background of FTTH FTTH Status and Forecast FTTH Technology Basics FTTH in China
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Telecommunication Trends
Optical TransportHigh Capacity ComponentsBroadband AccessHigh Capacity Transport
Broadband
Carry graded InternetConvergence RegulationsMultiple ServicesTransport-bearerAccess Technologies
Fixed-mobile
Convergence
Integrated Wireless SystemsOpen Service PlatformMobilityPersonalized Services
Personalization
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Next GenerationWireless Network3G\WLAN\WIMAXNext GenerationAccess Network
DSL\FTTH
Next GenerationInternetIPV6Next GenerationTransport NetworkASON/WDM
NGN is for All the Future Networks
Next generationswitching networkSoftswitch
End-to-end, evolved, converged total solutionUniversal protocol based packet network
Open platformService driven
With switching as the core
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Evolution to NGN Access Network
ADSL1-20MDialUp56K
FTTH
100MTTx+VDSL50M
Narrow BandBroadband
Single ServiceIntegrated Services
SingleserviceIntegrated
Service
Narrowband
Integrated
Broadband
Wirelessixed
SeparatedConverged
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Why FTTH?
HTTF:
FTTH:
How To Trade Fiber
Fiber To The Home
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FTTH Driving Forces
Competition LEC vs. CATV CLEC vs. ILEC
Market
Services New applications (Gaming, VOD, P2P, HDTV) Each family needs about 60M b/w
Regulation Governments new regulations to encourageFTTH deployments
Technology Progress in op-electronics and micro-electronics FTTH cost (system, fiber, device) drops dramatically
Promotion to other industries Overall market: 200-380 B /year in China
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Access Still the Bottleneck
Backbone
160X10G DWDM
ULH: 10G 3000km
40G SDH
Metro
MSTP
CWDM/DWDM
Metro GE
AccessDial-UpADSL
LAN
ASIC
Mores Law
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Video Application Needs FTTH
Access rate
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ADSL Cannot Meet the Needs
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WiMAX
Wi Fi
Neither Current Wireless
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Agenda
Background of FTTH FTTH Status and Forecast FTTH Technology Basics FTTH in China
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Japan FTTH users from 531,000 in July 2003 to 2.03 million in Sept 2004 Forecast 7.7 million by 2007
United States Massive deployments started in 2004. 200,000 users by mid 2004 Verizon plan 3 million by 2005; SBC plan 19 million by 2007; Bellsouthplan 2.8 million by 2009
Sweden 245,000 FTTH users in July 2003 with 10M as the typical bandwidth Provide E-magazine, VOIP phone, etc.
Italy 145,000 FTTH subscribers in July 2003, more than half of BB subs Provide voice, data, VOD, E-gaming, VoIP, CATV
Netherlands and Australia Also have FTTH deployments and future plans
Globe FTTH Update
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Source:RHK, Corning, Point Topic Q2 2003
Broadband lines by region
CALA2% EMEA25%
NorthAmerica29% Asia44% FTTH lines by region
CALA0%
Asia71%
NorthAmerica
9%
EMEA21%
Global Broadband Statistics
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Global FTTH Forecast
Source: Cahners In-Stat Group,RHK 2003
FTTH Subscribers CAGR 220%
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Agenda
Background of FTTH FTTH Status and Forecast FTTH Technology Basics FTTH in China
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Access Network The network portion between CO and the user Function includes cross connect, multiplexing, transport, but no
switching
Also known as local network, local loop, or subscriber loop
Optical Access Network (OAN) The set of access links sharing the same network-side interfaces and
supported by optical access transmission systems.
Access Network
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OAN Reference Configuration
T1520720-96
AN system management functions
ONU
ODN OLT
ONUAF
Service
nodefunctions
R/SS/R
(a) reference point
User side
Q3
Network side
(T) reference point
UNI
(V) reference point
SNI
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OAN Network Architecture
T1528110-98
F T T C a b
F T T HO
N
T
N
T
N
T
ON
U
O
NU
OL
T
F T T B / C
fibre
fibre
fibre
copper
copper
access networkhome
network
UN I SN I
O N U O ptical Netw ork U nit
O N T O ptical N etw ork Term ination
O LT Optical Line Term ination
T N etw ork Termination
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Terminologies FTTH Fiber To The home FTTO Fiber To The Office FTTC Fiber To The Curb or Cabinet FTTB Fiber To The Building FTTF Fiber To The Floor FTTP Fiber To The Premises FTTN Fiber To The Node FTTX Fiber To The eXchange FTTx General term for all of above
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FTTxFiber
Copper
SplitterCO
CO
ActiveModule
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FTTH Defined
ITU-T: Fiber to the householdno copperbetween CO and households
FCC: H includes both household and smallbusiness
We Extend: H includes individual household,small business, and multi-dwelling apartment
building
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High endresidence
Business/CBD
Internet Center
High end residence, especially the new builds, will be the startingpoint for FTTH
They are wealthy, seeking for modem life with advancedtechnologies
Large scale deployment, easy for planning, deployment andmaintenance
Most users in business building/CBD requires high bandwidth,
integrated services, and can generate high ARPU Triple play plus TDM leased lines
Internet centers are very popular in China, they usually closelylocated to each other and need large amount of b/w
ADSL does not meet b/w requirements, FTTP a good solution
Because closely location, PON is a good choice
FTTP Target Market
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FTTO Example
Internet
Company E
BasementP5012(OLT)
Teleom
building
Building A Building B
BP5001(ONU)
(ODN)
Company A
Company B
Company C
Company D
Company F
Company G
Company H
Company I
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N fibers
1 fiber
Existing PDH
access
EPON access
E1/T1 Convergence
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FTTH Example
House
High-endMDU
High-endMDU
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FTTH System Requirements Integrated Servicevoice, video, data, multimedia, TDM
High Capacityfinal b/w about 100Mbps/home
Low Cost 800/home Scalabilitybandwidth/home#subscribers/system
Manageabilitysubscribers, provision, fault, performance,security, billing
Interoperabilityexisting equipment, multi-versions,standardization
Availabilitymaximum failure/year, smooth upgrade
Flexibilityservice types, bandwidth, accounting/billing,system protection
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FTTH Generic Architecture
OLT
CATV Net
ONU
Access PartUser Partetwork Part
1-20km
ODN
50-300m
PSTN
Internet
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Beyond FTTH Access
OLT
CATV Net
MSTPOLTPSTN
Internet
CATV Net
PSTN
Internet
NetworkSide
ONU
WLAN
FiberONU
75
RJ11
RJ45
Cable
75
Home Side
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End-user Multiplex Mechanism
WDM
TDM
CO
1
1
1
2
2
2
CO
(1, 3, 5 )
(2, 4 6, )
1
23
45
6
CO
12
12
1
2
1
2
Fiber-D
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FTTH Architectures
CO
Single level P2PN pair of low speed O-modulesN long fibersN ports at CONo active componentsNo b/w limitation
CO
Two level P2P1 pair high speed O-modulesN pair low speed O-modules1 long fiber + N short fibers1 port at COActive components
No b/w limitation
CO
Fiber in the Building1 pair high speed O-modules1 long fibers1 port at COActive componentsB/w limitation
CO
PONN+1of low speed O-modules1 long fiber + N short fibers1 ports at CONo active componentsNo b/w limitation
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PON with 3 Wavelengths
CATV
1.49
1.31
1:161.55
1:32
1.49
1.55
1.31
Filter-1 Filter-2
Internet
PSTN
.
.
.
.
.
.
VSB-AM VSB-AM
TDM
TDM
OLT
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CO
CO
OLT
N fibers
2N transceivers
OLT
1 1 fiber
2 N+1 transceivers
31 port
N ports 4dynamic bandwidth sharing
P2P PON
5 high speed modulelow speed module
P2P vs. PON
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FTTH Topology
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How Does PON Work? True broadcast downstream,
Each ONU filters its ownusers traffic
Bandwidth statisticmultiplexing
Upstream time slicing
No collision
No packet fragmentation
Dynamic bandwidthallocation
Fast burst synchronization
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Same topologyP2MP fiber
APON EPON GPON
Different encapsulation
Proposed by FSAN andstandardized by ITU-T
ATM encapsulation
Standard most mature
Used in US and Japan
To be replaced
IEEE EFM standardized802.3ah
Ethernet encapsulation
Standard mature
Rapid growth in market
Widely used in Japan
Proposed by FSANstandardized by ITU-T
GEM encapsulation
Standard on going
Few vendors
PON: P2MP Technology
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APONEPON and GPON
L 3
L 2
L 1 P O N P h y s ic a l L a y e r
I P
E T H
T D M
P O T S
v i d e o
L 4
L 5
T C P / U D P
P O T S
v i d e o
E T H
P O T S
v i d e o
d a t ad a t a
d a t a
A P O N E P O NP O N
T D M
A A L 5A A L 1 / 2
T C P / U D P
T D M
E th e r n e t F r a m eG E M F ra m eA T M C e ll
I P
T C P / U D P
I E T F
P W E
I P
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EPON use WDM to realize bi-directional transport on asingle fiber
In order to distinguish the signals in two differentdirections, two multiplexing technologies adopted TDM for downstream TDMA for upstream
1490nm
1310nm
EPON: Multiplexing
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Broadcasting mode
After registration, ONU is assigned unique LLID(s)
Before transmitting a packet, an LLID was added into every packet
After receiving a packet, OLT compares the LLID with its LLID registrationlistONU only accepts those packet that has its own LLID or broadcasting
packet
EPON: Downstream
ONU-specificpacket
ONU-specific
packet
Splitter
Variable lengthpackets IEEE 802.3format
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TDMA mode
EPON: Upstream
Packet in IEEE 802.3 formatwith viable length
End-user 1
End-user 3
End-user 2
ONU-specific
packet
ONU-specific
packet
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ONU ONU synchronize with OLT
through timing message
ONU waiting for (gate
ONU perform discovery operation
ONU waiting for authorization tosend data
OLT Generate timing message used as
system reference time
Assign bandwidth using MPCP
frame
Ranging Control ONU registration
EPON: OLT and ONU
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GPON System Architecture
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Lower reliability and lower cost
Suitable for high-endresidential users and small
business users
PON ProtectionFull protectionTrunk only protection
higher reliability and higher cost
Suitable for high-end businessusers
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FTTH Product Categories Equipments
P2P Ethernet / P2P SDH APON EPON GPON WDMPON
Components Active modules (duplex, triplex transceiver, etc) Passive devices (Splitter, Filter, etc.)
Cable backbone cable, access cable, drop cable, in-door cable
Accessories All kinds of accessories for deployment, installation and
maintenance
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Agenda
Background of FTTH FTTH Status and Forecast FTTH Technology Basics FTTH in China
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Since 1990, the capacity of China PSTN hasincreased from 12M lines to more than 610M lines(July. 2004) ,The telephone penetration has increasedfrom 1.1% to 45% New installed wireline was 36M in the first half of
2004, which is approx. 50% of total new installedwireline world wide New installed ADSL sub. was 7M in the first half of2004, which is approx. 45% of total new installedADSL sub. world wide
Huge Traffic Growth
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020000400006000080000
100000120000140000
2000 2001 2002 2003 2004.9
Mb/s
Internet
Leased linePSTN
126GIP/PSTN = 32
International B/W Trends
China Domestic
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364 21747193
18263
02000400060008000
100001200014000160001800020000
2000.5 2001.5 2002.5 2003.5
Tbyte/m260 increase per year !
Backbone IP Traffic Growth
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Current BB Access Situation By June 2004, China has 87M Internet users
9.4% increase over year end of 2003
28% increase over mid 2003
6.7% of the population
31.1M broadband users 79% increase over year end of 2003
217% increase over mid 2003
By June 2005, the number of Chinas Internet users is103M Bear Sterns forecasts 144M BB subs by 2007 ADSL is the dominating technology
SOHO and Residence Environ.
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Cities and townsdensity wealthy distance B/w %
Smallbusiness high high close-far high 8%Luxurydistrict medium high medium-
farhigh 5%
MDU high medium close-medium
medium
-high72%
Remoteresidence low low far low 15%
Chinas FTTH Roadmap
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2003.11 2004.12 2006.6 2007
Stage 1Research and
development
2004.6 2005.9
Stage 2Testing and field trial
Phase1TestingEquipment maturity
and availability
Stage 3Commercial deployment
and operation
Phase3Small ScaleDeploymentOperation and
maintenance
Phase2Field TrialDeployment and
business model
Current Situation (1/3)
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FTTH is well accepted as a future-proof access solution
However, people hold different opinions as for when large scaleFTTH deployment starts
Government considering FTTH a huge market
Governments FTTH program: eleventh 5 year plan
Local government considering local regulations to promote FTTH
Applications
No single killer application so far
HDTV viewed as killer application but not widely used yet Gaming, IPTV, digital home, etc. together may make killer
applications
FTTH products are mature
Many equipment vendors and cable/fiber providers
EPON and point-to-point FTTH is commercially available
Ethernet based WPON and GPON are under development
Various out-door and in-door FTTH fiber and cable are available
Current Situation (2/3)
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FTTH integrated with home network ONT functionality extension into home gateway
Carriers attitude are generally positive
China Telecom formed an FTTH special leading group and
deployed the first commercial FTTH in Wuhan China Netcom complete country-wide FTTH testing and a
number of deployments
China Mobile is considering FTTH for its wire-line access
FTTH forum
Founded in 2004 by Fiber-on-Line to promote FTTH research,development and deployment
Standardization
By China Communication Standard Association
Also by local governments: Wuhan and Hangzhu Major issues
High cost in comparison with ADSL which dominates todaysaccess market
Lack of applications
Current Situation (3/3)
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Some deployments and certain deployment experience
Good equipment installation experience but few cabling andwiring experience
Countrywide FTTH field trials and commercial deployments
More than 20 FTTH field trials and commercial deployments inWuhan, Beijing, Chengdu, Hangzhu, Shanghai, Guangzhu, etc.
The biggest has about 2000 subs
More FTTH deployments planned
The first FTTH in commercial operation by major carriers Zisong residential district FTTH with 420 subs by Wuhan
Telecom and operation starting in Jan 2005
IP telephone, POTS phone, Internet, CATV, FAX, IPTV
1:32 GEPON with triplex WDM
A big district in Wuhan plan to use FTTH/O
An area of about 7 square km with population of 160,000
Including residential building and CBD
All FTTH and FTTO for access
Major Players
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Equipment
Fiberhome (EPON, GPON)
UTStarcom (EPON)
Greenwill (EPON)
Fohope Networks (WPON)
ZTE (EPON)
Fiber/Cable Fiberhome
Changfei
Hengtong
Devices and Module WTD
Fiberxon
Accelink
Vendors Telecos
China Telecom
China Netcom
China Mobile
China Unicom
Residential service providers
Tailong
Service providers
Technology Choices (1/2)
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Service requirements Multiple-play: voice, Internet access, CATV, IPTV, leased line
Three types of subs: home, small-medium business, largecorporation
Two major FTTH architectures P2P and PON
P2P is good for Enough CO space
Subs are sparsely located and their distances to CO are quite
different
High scalability requirements in # of users and b/w
PON good for Limited CO space Subs are closely located and their distances to CO similar
Low scalability in # of users and b/w
Technology Choices (2/2)
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EPON will dominate FTTH market
For high-density home and small office
POTS, Internet, CATV, IPTV, VOIP
Easy to evolve to NGN GPON will be mainly used for FTTO
For high-density medium size corporations
POTS, Internet, IPTV, VOIP, small # of leased lines
Make the best use of exiting network resource
Point-point SDH
For big corporations and sparsely located medium size corporations
Large number of leased lines (ATM, FR, TDM), voice and Internet
Point-point Ethernet
For sparsely located home and small business which does notneed lot of leased line services
EPON or GPON?
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Optical level No big difference
Cost EPON is cheaper
Encapsulation efficiency Commonly accepted: EPONs efficiency is less than 50
GPONs great than 90
It all depends on what service: Ethernet? TDM?
In reality, almost all the IP services carried over Ethernet
Support for TDM Both EPON and GPON support TDM GPON is more efficient for large number of E1/T1
Maturity EPON is more mature
ConclusionEPON and GPON suitable for
different environments
Fiberhomes Total Solution
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Citrans 850series MetroDWDM
IBAS 100 EdgeOptical NetworkProducts
MSTPCitrans SeriesMSTPProducts
Citrans830SeriesCWDM
Metro DWDM
ASONFonsWeaver 640FONSTW1600
Long HaulDWDM
Citrans SeriesMSTPProducts
Citrans 850Series MetroDWDM
Citrans 830Series CWDM
IBAS 100 edgeoptical networkproducts
FiberhomeForce10 CoreRouter
MAISP8000ConvergeRouterR4000 SeriesConvergenceRouter
S3000 SeriesLayer 3 Switch
R3000 SeriesEdge RouterodeB
NodeB
NodeB
SGW
MSC-S/VLR
HLRFHX 3000MGW
FHX 5000SGW PSTN
FHX 8000Softswitch
FHX 1000 SeriesIAD
BWAat COBWA enduserWLANAP
PDA
MobileData
BroadbandWirelessAccess
AN2000 SeriesDSLAM
S2000 SeriesLayer 2 Switch
ODN1:64
BP5000 EPONONT
ADSLADSL2+
VDSL2
EnterpriseCustomers
GovernmentCustomers
Media Server Application Server Billing Serverolicy Server
MSTP
Metro DWDM
SS7
NodeB
NodeB
NodeB
IN
3G Core NetworkCircuit Domain
3G Core NetworkPacket Domain
SS7
PSTN
MGW
RNC
BP5000 EPONOLT
AN3000 SeriesIAS at CO
AN3000 SeriesIAS Remote
BroadbandNarrowband
GGSNGSN
RNC
Edge access Edge Access
Integrated
BearerPlatform
Fiberhomes FTTH Solution
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Started PON products development in 1995 Industry Leader in supporting Integrated services P2P Ethernet, EPON and GPON Single fiber with triple wavelength, true triple-play Smooth evolution to NGN/softswitching High GEPON interface density Complete accessories
Equipmentcarrier grade GEPON system with advanced OAMGEbackplane (48G), 1:32 splitter, 1024 ONU on single chassis
Componentsall active (transceiver and CATV module) and passive (splitter,wavelength multiplexers) components for GEPONCableall kinds of cables for FTTH and installation solutionsAccessoriesall kinds of accessories for FTTH
Current Focus: FTTH and FTTO
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CATV, DTV
KM
Evolution to Soft-switching
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To interwork with PSTN through open V5 and/orPRI and make the best use of existing networks
Control module supports H.323 and H.248, flexiblefor both H.323 VOIP network and future softswitch
network
PSTNV.5/PRI.. Integrated MG
H.248 ANM2000
MGCFHX8000
H323GatekeeperFHX3000GE H323
Metro Network
Integrated Access capability
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FTTH to Home Network
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BP5005
ODN
ODN
V5
GEMetro IP
PSTN
CATV
e-Fim ANM2000
Single fiber to house, true triple-play Communication, entertainment andmonitoring together Smooth evolutionONUhome gateway High density ADSL2+/VDSL/FTTP equipment
Data100M/family VoicePOTS and VOIP VideoCATV and IPTV Leased lineTDM and VLAN With WLAN integrated
FTTH Cables
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Backbone CableAccess CableDrop CableIndoor Cable
Deployment Model
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By telecos and CATV providers Same as that for the existing BB access networks Invest once and profit in a long term
By telecos, CATV providers and house builders House builders responsible for deployment, deployment
cost counts into into house price
Telecos and CATV responsible for operation andmaintenance
Multiple parties share the profit
By residential service providers (RSP) RSP responsible for network operation and maintenance Telecos responsible for providing exit port and b/w Services provided by multiple-parties
Operation Model
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By telecos and CATV providers Enough operation experience
No interworking and inter-billing problem
Hard for triple-play
By residential service providers Easy for integrated planning and deployment of the overall
information platform
Evolution to NGN
Encourage competition
Network resource sharing
Tailong model in Chengdu is the first attempt
Zisong FTTH in Wuhan
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The first FTTH network in commercial operation by service providers FTTH deployment for existing dwelling building with 420 subs
The total FTTH solution from Fiberhome, including 1:32 triplex GEPON equipment,splitter, all the kinds of cable and all accessories
CO
Cabinet
PCPhone
Zisong FTTH Deployment Field
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Cabinet with splitter inside Insider of the Cabinet Leading cable
Cabinet in the building End unit (ONU)Insider of the ONU
Beijing CNC FTTH Project
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The five vendors are Fiberhome, Utstarcom, ZTE, Huawei, and Gaohong
4 large scale
technology discussion
and 5 vendors selected
for testing
5 vendors
EPON
equipment
testing
Lab FTTH
network
demonstration
Firstcommercial
deployment
FTTH Cost
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CAPEX UpgradeOperation
Maintenance
Fiber3%
Engineeringdesign
4%
Construction21%
Equipment60%
DN Compon ents12%
Equipment Price Trend
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0100020003000400050006000700080009000
2004 2005 2006 2007 2008
EPON equipment price for triple-play per line
EPON Equipment Price ( /sub)
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Services < 5000 line >100000 line2005 2006 2008 2005 2006 2008
Internet
only 1590 1350 900 1200 1000 600
Internet +
voice1950 1500 1000 1430 1100 750
Triple play 4400 3080 1800 3000 2100 1400
FTTH CAPEX ( /sub)
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Services< 5000 line
2005 2006 2008
E C Total E C Total E C Total
Internet Only 1590 1500 3090 1350 1100 2450 900 700 1600
Internet +
voice1950 1700 3650 1500 1300 2800 1000 800 1800
Triple-play 4400 2000 6400 3080 1500 4580 1800 900 2700
Services> 100,000 line
2005 2006 2008
E C Total E C Total E C Total
Internet only 1200 1000 2200 1000 700 1700 600 400 1000
Internet +
voice1430 1250 2680 1100 900 2000 750 500 1250
Triple-play 3000 1500 4500 2100 1100 3200 1400 700 2100
FTTO Case Study
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Item /Penetration Year 135 Year 250 Year 3601 # of FTTO subs5100 in total 1,785 2,550 3,060
2 OLT800/line4000 line 3,200 - -
3 ONU1000/each 1,785 765 5104 FTTP Cable800/each 4,080 - -
5 CAPEX in Total 9,065 9,830 10,3406 Monthly fee (198/sub 4,241.2 6,058.8 7,270.6
7 Installation fee1800/sub 3,213 1,377 918
8 Revenue in total 7,454.2 14,890 23,078.6
9 Operation fee4% of CAPEX 362.6 393.2 423.6
10 Sale and other fee20 of revenue 1,490.8 2,978 4,615.7
11 Real revenue 5,600.8 11,518 18,039.3(in 1K Chinese Yuan)
Challenges
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No killer applications Most applications low b/w : Email, web surfing, web gaming Telecos not allowed to run broadcast TV People not used to pay for TV
FTTH still too expensive than existing technologies ADSL equipment: 400-500/user FTTH equipment: 1600(Internet), 2000 (voice + Internet), 4000 (triple play) FTTH cable: 1500(Internet), 1700 (voice + Internet), 2000 (triple play)
No deployment and operation experience No large scale commercial FTTH deployments Few commercial FTTH in operation but little operation experience
Competing technologies meet current requirements
ADSL/2/2+, LAN, MMDS/LMDS, HFC, WLAN, WiMAX, BPL
Profit model not clear
Regulation discouraging for FTTH deployment Residential service providers CATV rights
Opportunities
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New applications emerging Country-wide digital TV plan
IPTV become very hot
HDTV starts enter into market
P2P and gaming exhaust bandwidth
None of the existing technologies can provide 60Mb/w per family FTTH cost keeping dropping
FTTH cost keeps dropping dramatically
FTTH cost/bandwidth is much lower than other technologies
For FTTO, cost is not the most important factor
Deployment planned More than 20 FTTH deployments are on-going with the largest of 2000 subs
A large residential FTTH in Wuhan with more than 16000 residents
China Netcom considering FTTO for Beijing CBD
2008 Beijing Olympics prefers FTTDesk and FTTH
Experience and encouragement from Japan and US Encouraging regulations are under governments consideration
FTTH deployment bundled with real estate
Separation of TV network and TV program is under consideration
The Telecommunication Law will further encourage competition
Summary
7/27/2019 Destination FTTH
79/80
FTTH is accepted as a future-proof solution
FTTH has seen rapid growth in some developedcountries
Both P2P and PON have their favorabledeployment environments
APON is widely deployed in US, but will be out
EPON and GPON will dominate FTTH and FTTOrespectively
Chinas FTTH market is huge and is approaching
massive FTTH deployment
7/27/2019 Destination FTTH
80/80
Thank You
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