FTTH Market, Strategies and Portfolio Update
Wireline MarketingOctober 2009
All Rights Reserved © Alcatel-Lucent 2009
Agenda
€
ECO
Alcatel Lucent GPON Portfolio
Eco-sustainability in access networks
Next generation access
FTTx market
All Rights Reserved © Alcatel-Lucent 2009
Service evolution overview
Communication Services
Entertainment Services
Wider-EconomyServices
IP Telephony
Free Nat’l Calls
Free Int’l Calls
CommercialFMC
RichVoice
TVVideophony
IPTV
VoD
User Shared-TV
Web 2.0On TV
TV on PC
Webon TV
TerminalVideophony
TrafficInformation
HomeSurveilance
HomeMonitoring E-Health
RemoteElderly
Care
E-Administration
IntegratedFMC
Widespread
Growing
Emerging
Enabling Services
Catch-UpTV
E-Education
InteractiveTV Content
Envisaged
Home Tech SupportUp to 1000/1000 HSI
QoS GuaranteeHome Network Mg’t Up to 100/100 HSI
Up to 50/20 HSI Wireless
DVR
All HD
HD
AdvancedEPG
ExclusiveContent
3D-TV Apps on TV(Open STB APIs)
NPVR
LAN Router
Child Protection
Source: Yankee Group 2009
All Rights Reserved © Alcatel-Lucent 2009
Sources: FTTH Council; Operators; Alcatel-Lucent
More bandwidth downstream, but also upstream
Today’s downstream is tomorrow’s upstream
Next Generation 3D TV
HDTV VOD
Video Uploads/Downloads
Large File Sharing
Premises Web Hosting
Multi Player Gaming, Interactive Distance LearningNetwork PVRFile Sharing/Home Video Sharing/Streaming
Telecommuting
Video Conferencing, Premises SurveillanceWeb Surfing
FTTPVDSLADSL 2+
CableADSL
20 15 10 5 5 10 15 20 25
Generates new ARPU &
Differentiates Service Offering
Generates new ARPU &
Differentiates Service Offering
Tier 1 operator in Europe:
“One of the main learning from fiber trial is that customer shows strong interest for upload capacity (picture upload, home working, …)”
Tier 1 operator in Europe:
“One of the main learning from fiber trial is that customer shows strong interest for upload capacity (picture upload, home working, …)”
All Rights Reserved © Alcatel-Lucent 2009
ADSL~12 Mbps
VDSL~50 Mbps
VDSL~50 Mbps
VDSL~100 Mbps
P2P/AE100 Mbps+
GPON100 Mbps+
Strategy
Solving the bandwidth equation with FTT€Alcatel-Lucent’s strategy: “Fiber to the most economical point”
Drivers: up-front CAPEX, competition, and time-to-market
All Rights Reserved © Alcatel-Lucent 2009
-20%
0%
20%
40%
60%
80%
100%
10% 100% 1000%
FTTx HP Growth [%] 2007-2008
FTTx
HP
[%]
China
South Korea
J apanBelgium
Switzerland
Hong Kong
US
GermanyFrance
NL
Finland
Portugal
Austria
Italy
Sweden
Denmark
Norway
PolandUK
Spain
Croatia
Czech
Slovakia
Lithuania
Ireland
Estonia
Romania
Latvia
Russia
Mature
Fiber Nations On the MoveFTTx has passed the Point-of-No-Return
Today more than 40M BB users are connected via fiber
Moving Leapfrog
15M HH TAD
FTTH
FTTB
FTTN VDSL2
TBD
Source: Alcate-Lucent analysis of industry blend: iDATE, Ovum, Point Topic
All Rights Reserved © Alcatel-Lucent 2009
Source: public announcements
CountriesAustralia
BelgiumChina
DenmarkFrance
GermanyHong Kong
IcelandIreland
ItalyJapanKorea
New ZealandNorway
SingaporeSpain
SwedenSwitzerland
The NetherlandsUK
USA and Canada
Cable
CableCable
IncumbentAlternative Munis/util.
Cable
ePON / GPONePON / GPON P2P / AEP2P / AE
N/A or TBDN/A or TBD
Public announcements in top BB countries
FTTNFTTN FTTAmplifierfor HFC
FTTAmplifierfor HFC
Cable
Cable
70% top national carriers with GPON
50% countries with at least two operators with
GPON
GPON in volumes initially in the USA
Major operators have defined their FTTx strategy
All Rights Reserved © Alcatel-Lucent 2009
Source: Infonetics / Analyse Alcatel-Lucent3,4% 4,7% 6,5% 9,5% 13,6%
CAGR 2004-2008
PON in North America and EMAI showing strong size and highest growth
FTTx is translating into numbers, PON and VDSL drives FTTx
As % of fixed BB
subscribers
50% 100% 150%
PON in Asia
PON outside
AsiaVDSL
P2P0
10
20
30
40
50
CY2004 CY2005 CY2006 CY2007 CY2008
FTTx S
ub
s W
W (
M)
All Rights Reserved © Alcatel-Lucent 2009
Fiber to the most economical point FTT€ Comes in different flavors
CO VDSL2 & FTTH
FTTH/B
FTTH
FTTN VDSL2
AT&TAT&T
Greenfield FTTH
Factors:
Competition
CAPEX/OPEX
Existing infrastructure
Regulation
Incentives
Demand
Greenfield vs. brownfield
All Rights Reserved © Alcatel-Lucent 2009
High regional variances – different financial profile
Market Driven Policy DrivenRisk Driven
FFP
CO CO
Sharing Dark Fiber in the
Building
Fiber Flexibility Point Building
Fiber Nation = mosaic of Technology-agnostic sharing options
Joined re-use of ducts or dark fibre
Private
CO CO
Ducts / fiber
Private
WholesalerWholesaler
Local community as IP Wholesaler
CO
SPxSP2SP1
Building
owners
PublicPrivate
All Rights Reserved © Alcatel-Lucent 2009
Fiber is a “big” marketing event
AT&T’s “Ice
Cream” truck
Fios Hummer
Reality Contests
Fios Lounges
Fiber “Tupperware” Parties & neighborhood sales
AT&T’s Experience Stores
You just got to have it!
All Rights Reserved © Alcatel-Lucent 2009
FTTx comes with profound usage changesHigher BB speeds lead to increased usage, in general
Average broadband speed (Mbps)
tim
e s
pent
onlin
e (
h/w
eek)
“When we upgraded our customers from 2Mbps to up to 8Mbps we saw an average increase in usage of 15% per customer” - Neil Laycock (CEO PlusNet)
Countries included: Finland, Norway, UK, Gernany, Spain, Belgium, Denmark, Switzerland, Netherlands, Austria, Ireland, Mexico
More capacity.... …leads to more usage
Source: Nielsen/Netrating Netview homes data only, June 2006
All Rights Reserved © Alcatel-Lucent 2009
0%
10%
20%
30%
40%
50%
60%
Cable modem DSL Mobil Breband Optical fibre
I do not like it at all
Its below average
Its average
Its above average
I like it very much
78% of FTTH users are very satisfied
Source: FTTH Council Europe & Ovum, 2009
All Rights Reserved © Alcatel-Lucent 200914 | Presentation Title | Month 2008
0%
10%
20%
30%
40%
50%
60%
70%
Cable modem DSL Mobil Breband Optical fibre Not sure
Less than 30 minutes
30 minutes to 1 hour
1 hour to 2 hours
2 hours to 3 hours
More than 3 hours
FTTH users Spend More Time Online
Source: FTTH Council Europe & Ovum, 2009
All Rights Reserved © Alcatel-Lucent 2009
Alcatel-Lucent’s leadership in GPON
GPON World-wide Port Shipments (OLT+ONT)
304K
520K
721K
Huawei
Siemens
E///
ECI
Alcatel-Lucent
240K
68K
Huawei
Motorola
E///
Calix
Alcatel-Lucent
Alcatel-Lucent present in all major GPON deployments worldwide – 80+ projects in total:
• #1 FTTx supplier in the US:• AT&T, Verizon
• Leading the largest GPON deployments in Europe:
• France Telecom, SFR, Portugal Telecom…• Developing a strong presence in APAC:
• Hanaro, Singtel, TNZ, China Telecom, China, Mobile…
• Leading supplier of GPON to utility companies and municipalities around the world:
• Utilities include NRGi Fibernet, Jönköping Energi, Bristol Virginia Utilities. Municipalities include Arvidsjaur, Tidaholm Sweden, Lincoln Country US, Asturias Spain…
• Developing references for point-to-point (P2P) fibre solutions:
• KPN (Netherlands), Sydfyns Intranet (Denmark) EWZ (and Switzerland)...
• Winner of prestigious IEC InfoVision Award for GPON ONT (BBWF Paris, Sept. 9/09)
Alcatel-Lucent, a leading supplier of GPON solutions worldwide
Source: Dell’Oro, August 2009
Alcatel-Lucent 37%
Huawei12%
Motorola27%
Ericsson4%
Calix16%
Alcatel-Lucent shipped 37% of cumulative GPON ports up to
2Q09
All Rights Reserved © Alcatel-Lucent 2009
Alcatel-Lucent – the GPON leader
Operator Vendor 2nd Vendor Deployment model StatusGPON FTTU 3M HP per year, target
18M HP in 2010
GPON FTTU Mass roll-out
GPON FTTU Roll-out started, 15K HC
Dasan FTTB/VDSL and FTTU Nation wide
None GPON/FTTU Massive roll-out
None GPON/FTTU Massive deployment
Tellabs GPON/FTTU Started 2008
None GPON/FTTU Started 2009
GPON/FTTU Since 2008, target 1M HC
GPON/FTTU Massive roll-out
All Rights Reserved © Alcatel-Lucent 2009
Agenda
€
ECO
Alcatel Lucent GPON Portfolio
Eco-sustainability in access networks
Next generation access
FTTx market
All Rights Reserved © Alcatel-Lucent 2009
• GPON standards based optical broadband - part of the ISAM family with shared technology, management
• 2.5 Gb/s downstream and 1.2 Gb/s upstream over a single fiber.
• GPON encapsulation mode (GEM) for most efficient transfer of IP/Ethernet service traffic
• Up to 64 subscribers per PON (a single fiber), 4 PONs per line card
• Variety of ONT options to match the needs of residential or business customers Optical Line
Terminal
I-Series ONT
O-Series ONT
B-Series ONT
FTTB ONT
7342 ISAM FTTU – Solution in BriefThe Industry Leading GPON platform
€
All Rights Reserved © Alcatel-Lucent 2009
The Most Comprehensive ONT family available
Residential Business FTTB
Indoor
Outdoor
2xGigE2xFE, 2xPOTS, RF
4xGigE, 2xPOTS, optional RF
2xFE, 4xPOTS, RF
1xGigE, 8xPOTS,
2xE1, RF
24xVDSL2 (30a/17a)
12xGigE, 24xPOTS, RF
2xGigE, 8xPOTS,
RF1xFE, 2xPOTS, RF
4xGigE, 4xE1s
4xGigE
8xVDSL2 (30a/17a)8xFE, RF
7342 ISAM FTTU Optical Network Terminations – Portfolio
€
All Rights Reserved © Alcatel-Lucent 2009
7342 ISAM FTTU Next-gen family of GPON SFU ONTs
New enclosure
–Indoor and outdoor versions– Smart industrial design– Small size– Wall-mounting capable (w/o separate mounting bracket)
Lower power consumption
– Up to 30% lower
RSSI enabled
–For remote optical power metering
New System-On-Chip
– GE at wirespeed– Multicast across all ports– HW ready for advanced L2 and L3 features
Key Features
€
All Rights Reserved © Alcatel-Lucent 2009
Towards true multivendor PON infrastructure
3rd party
partnersPlug’n’play interop
ONT portfolio
2009-20102009-2010
Alcatel-Lucent portfolio extension
OMCI Interoperability
Implementer’s Guide - Version 1
full OMCI available to partners
<2009<2009
Expanding Alcatel-Lucent ONT portfolio
for all FTTx deployments
•Home•Building•Business•Cellsite
2010-20112010-2011
Alcatel-Lucent ONT portfolio
Plug’n’ play interop based on
standardized OMCIparticipation in OISG
€
All Rights Reserved © Alcatel-Lucent 2009
Robust & field proven by more than 80 customers Tested and verified by more than 80 GPON customers Designed for the field: Only industrial temp components All in-house ALU technology, end-to-end (ONT, OLT, TPSDA)
ONT: Widest Portfolio, >20 ONTs for All Customers: Residential Customer: New data only ONT with 4 GE links Business Customers: Up to 4GE, 4E1s, POTS Multi-dwelling units: VDSL2/GE with Virtual ONT concept
OLT: Highest Capacity & Best Scalability Highest switch capacity on the market: 250Gbps per NT Highest uplink capacity: 22 Gbps per NT Unbeaten scalability: Most T-CONTs, GEMports and multicast streams
Most Resilient and Secure Full load-sharing and NT redundancy Extensive GPON specific 802.1ag fault isolation and RSSI (OLT and ONT) Control plane protection (IGMP)
Unrivaled Service Support Full voice support: Class-5/SIP/H248 & widest SIP interop Business& legacy: Circuit Emulation, Mobile Backhaul, MEF E-Line Network synchronization: BITS, IEEE1588
1122334455
Alcatel-Lucent ISAM FTTU: Key Differentiators€
All Rights Reserved © Alcatel-Lucent 2009
5520 AMS Access Management System: Most scalable & widely deployed management system ww
Realistic equipment views
Realistic equipment views
Intuitive drill downIntuitive drill down
Activity states windowActivity states windowContext-related alarmContext-related alarm
Tree-like network viewTree-like network view
Real-time alarm and status reporting
Real-time alarm and status reporting
Proven access management solution Over 600 systems deployed worldwide More than 80 million lines managed 20 deployments with more than 1 Million lines under management 4 Million lines managed in a single system
Proven access management solution Over 600 systems deployed worldwide More than 80 million lines managed 20 deployments with more than 1 Million lines under management 4 Million lines managed in a single system
€
All Rights Reserved © Alcatel-Lucent 2009
5520 AMS: New Generation Techology Platform for flexible OSS integration
5529
APC
5529
SDC
TL1GW
Hardware integration
Platform integration
All purposeTL1 interface
SNMP
XML/SOAPLine tests, diagnosis,
Line classification
SNMP, TFTP
XML/SOAPProvisioning,activation,
port inventories…
All purposeTL1 interface
SNMP, TFTP
XML/SOAPStatistics,
performance
XML/SOAPDB Population
Operation Support System
Access Network
XML/SOAPAlarms
5530NA5520
AMS(Core EML)
5529
OAD
5529
IDM
State of the art Web Services (XML/SOAP) - Reduce OSS integration time & cost
€
All Rights Reserved © Alcatel-Lucent 2009
Facilitate integration of service provisioning OSS to underlying access resources
Hides complexity through resource abstraction
Reduces integration cost and time Support mass provisioning
operations Stable and backwards compatible
5529 APC (Access Provisioning Center)
Advanced interface for intelligent alarm forwarding to network wide alarm management OSS
XML/SOAP interface (MTOSI compliant)
Intelligent alarm forwarding Reduces integration cost and time
5529 OAD (OSS Alarm Dispatcher)
Specialized application for mass collection of inventory data in the
access network.
Centralized database of all NEs Synchronize inventory to OSS systems Powerful GUI navigation Reduces integration cost and time
5529 IDM (Inventory Data Manager)
Intelligent collection and dispatching of network data to performance and QoS applications
Collect mass amount of data Protect NE processing power Reduces integration cost and time
5529 SDC (Statistics and Data Collector)
5529 Portfolio: Market-leading portfolio for provisioning and OSS integration
Unique portfolio of operational toolsFlexible OSS integration - Automate workflows – reduce OPEX
€
All Rights Reserved © Alcatel-Lucent 2009
5530 NA Network Analyzer (Now applications – Motive Product Unit)
Line and Fiber Diagnostics
• Intelligent wire fault and configuration fault detection based on SELT and DELT
• Proactive detection and localization of optical degradation and failure
• No external test equipment required
Network Analysis
• Network-wide line quality and performance indicators
Dynamic Line Management
• Automatic performance optimization, for maximum stability and bitrate
• Automated DSL transmission profile management (rate, spectrum, ANVN)
Network Analysis
Line DiagnosticsWire FaultDetection
ConfigurationFault Detection
MaximizePerformance
Optimize Stability
Market-leading line/network diagnostics & dynamic line management, >50 customers
Automate helpdesk and provisioning workflows – reduce OPEX
€
All Rights Reserved © Alcatel-Lucent 2009
Agenda
€
ECO
Alcatel Lucent GPON Portfolio
Eco-sustainability in access networks
Next generation access
FTTx market
All Rights Reserved © Alcatel-Lucent 2009
Our challenge: Cut green house gas emissionICT represents 2% emissions 2007. Not at par with aviation!
Source: Alcatel-Lucent analysis of Smart 2020 data
ICT challenge: x3 increase GtCO2e from 2002 to 2020
0.5 GtCO2e
1.4 GtCO2e PCs, peripheralsand printers
Data centers
Telecom
2% of GHG
2% of GHG
58%
57%
49%
14%14%
18%
37% 25%2002200228%
Telecom Devices
3%Telecom Devices
3%Fixed
Narrow Band 12%
Fixed Narrow Band 5%
Mobile Network
s 12%
Mobile Network
s 13%
Fixed Broadband
4%
Fixed Broadband
1%
2007200720202020
ECO
All Rights Reserved © Alcatel-Lucent 2009
Three impact areas in fixed access
CO
Network Equipment:
CO equipment, cooling…
Network Equipment:
CO equipment, cooling…
Customer Premises:
ONT, CPE, remotes..
Customer Premises:
ONT, CPE, remotes..
ECO
Outside Plant:Network deployment,
digging, etc
Outside Plant:Network deployment,
digging, etc
GPON positively affects all impacted areas
Customer Premises:
Passively Cooled Remotes,
Eco-efficient ONTs
Customer Premises:
Passively Cooled Remotes,
Eco-efficient ONTs
Outside Plant:Passive network, high-
reliability and immunity of fiber, etc
Outside Plant:Passive network, high-
reliability and immunity of fiber, etc
Network Equipment:
Green GPON, reduced power consumption
Network Equipment:
Green GPON, reduced power consumption
All Rights Reserved © Alcatel-Lucent 2009
The Business Case is in favor of eco-sustainability
Breaking the OPEX trend with GPONGPON provides more capacity at the lowest TCO
Assumptions:
5 years cost of ownership
0.1 Euros/kWh
0
5
10
15
20
25
30
35
40
ADSL VDSL P2P GPON
Life
-tim
e En
ergy
OPE
X /u
ser
[€]
ECO
All Rights Reserved © Alcatel-Lucent 2009
Agenda
€
ECO
Alcatel Lucent GPON Portfolio
Eco-sustainability in access networks
Next generation access
FTTx market
All Rights Reserved © Alcatel-Lucent 200932 | Presentation Title | Month 2008 32 | Next Generation Access | February 2009
Manage the technology cycleCapacity, reach, split and optical troubleshooting
Less dense areas addressed and central office consolidation
10Gb/s
2.5Gb/s
Reach 20km 30 km 60 km
Split 32 64 128
GPON B+Today
GPON B+Today
GPON C+2009-2010
GPON C+2009-2010
Extended GPON2009-2010
Extended GPON2009-2010
10 Gb/s PON2010-2011
10 Gb/s PON2010-2011
Extended 10 Gb/s PONExtended 10 Gb/s PON1
2 3
Three targetapplications
1.FTTB backhaul
2.Business Access
3.Fiber to the base-station: LTE backhaul
Three targetapplications
1.FTTB backhaul
2.Business Access
3.Fiber to the base-station: LTE backhaul
RE
RE
All Rights Reserved © Alcatel-Lucent 2009
Making 10 Gb/s PON backwards compatibleIndustry converging on operationally acceptable standard
GPON
10 Gb/sGPON
No changes to OSP, including
fiber and splitter
Many GPON ONTs today have
WBF
10 Gb/s ondifferent
wavelengths(up and down)
WDM to split GPON from
10 Gb/s GPON
Wavelengths for XG-PON same as symmetric 10G EPON – cost efficiency
1260-1280
1290-1330
1480-1500
1550-1560
1575-1580
(in nm)
GPON up GPON downXGPON up XGPON downCATV
All Rights Reserved © Alcatel-Lucent 2009
10G PON(10Gb on top of 2.5Gb)
WDM PON (as P2P) solutions are subscriber density ‘challenged’
Zoom in WDM PON CAPEX and operational disadvantages
WDM PON(Everyone Gets a Lamda)
Today Over Time Today Long term
GPON
GPON
OLT
Splitter
ONT
Based on a1:32 split
CAPEX Operations
TDM PONWDM PONCAPEX Lowest cost
FTTHx3-4 TDM PON
OPEX LowCO Power,
CO floor space
Eco Lowest power consumption
High power consumption
Standardized Yes Not started
Dynamic BW Yes Not possible
Video overlay Yes Not possible
Passive OSP Passive splitters
Temp controlled or temp
extended AWG
System Design
Straight forward
Complex, many dependencies
Reliability ExcellentAWG needs to be
athermal & reliable
All Rights Reserved © Alcatel-Lucent 2009
Summary
Alcatel Lucent #1 in GPON
Eco-sustainability = eco-efficiency
Next Gen Access: backwards compatible, no stranded investments
FTTx market is a reality > 40M users
€
ECO
All Rights Reserved © Alcatel-Lucent 2009
36 | Presentation Title | Month 2009
www.alcatel-lucent.comwww.alcatel-lucent.com
Top Related