Towards Competitive Universal High-speed Broadband Access
Dr. Sanjay S. Patel
CTO, Wireline Networks Product Division
WIK International Conference, Berlin, April 2010
All Rights Reserved © Alcatel-Lucent 2010
Outline
FTTx market update
Architectural/wholesale evolution
Next generation fixed access
2 | Sanjay S. Patel - WIK Berlin, April 2010
All Rights Reserved © Alcatel-Lucent 20103 | Sanjay S. Patel - WIK Berlin, April 2010
NG game consolesw/Internet
(PS3, Xbox 360, Wii: Nintendo forecasts 16M units in ’07)
Mass-market multimedia devices are changing our personal lifestyle
Multimedia-capable PCs (25 Mio sold in ‘06,
10% growth)
Digital photography (20% of BB subs used
Internet upload services)
MP3 players (35 Mio sold in ’06,
30% growth)
Multimedia applications drive the demand for UHS broadband
Heavy Reading FTTH Market in Europe 2006-2011
High-definition TV sets (50% of TVs purchased
are HD-ready(5% in ’05))
Consumer-focus
Digital cameras (Owned by 60% of
households end ’06)
All Rights Reserved © Alcatel-Lucent 2010
~6.8M ~2.3M ~32.2M
Source: FTTH C NAR (Sept 2009); FTTH C Europe/iDate (Sept.2009 + including Russia); FTTH C AP/Ovum (Sept 2009)
Fiber Nations are gaining ground around the worldEurope is struggling behind
4 | Sanjay S. Patel - WIK Berlin, April 2010
All Rights Reserved © Alcatel-Lucent 2010
Source: IDATE for FTTH Council Europe
European Economies with greater than 1% household FTTH/B Penetration
Fiber To The Home Subscribers
Fiber To The Building Subscribers
0,0%
2,0%
4,0%
6,0%
8,0%
10,0%
12,0%
Sweden
Norway
Sloven
iaAnd
orra
Denmark
Icelan
dLit
huan
iaNeth
erlan
dsSlov
akia
Finlan
d
Italy
Estonia
Russia
Latvi
a
The Nordics is taking the lead, with Central and Eastern Europe making good progress. Major European economies still not in top-10.
The Nordics is taking the lead, with Central and Eastern Europe making good progress. Major European economies still not in top-10.
Europe mid 2009
2M FTTH/B subscribers
13M FTTH/B homes passed
4M FTTx subscribers
30M FTTx homes passed
5 | Sanjay S. Patel - WIK Berlin, April 2010
All Rights Reserved © Alcatel-Lucent 2010
What is wrong in Western Europe?Why is FTTH/B so limited? Any why is the take-rate so low?
2
4
6
8
10
12
14
16
Dec 07 June 08 Dec 08
FTTH
/B s
ubsc
riber
[M]
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
FTTH
/B ta
ke ra
te
WE USA So
uth
Kor
ea Japa
n
WE USA So
uth
Kor
ea
Japa
n
WE USA So
uth
Kor
ea
Japa
n
SouthKorea
JapanUSA
WE
Unclear regulatory framework? No local marketing? Unclear business case? Competition? Economic stimulus? Few nation-wide FTTH strategies?
Good copper? End-user mentality?
Unclear regulatory framework? No local marketing? Unclear business case? Competition? Economic stimulus? Few nation-wide FTTH strategies?
Good copper? End-user mentality?
6 | Sanjay S. Patel - WIK Berlin, April 2010
All Rights Reserved © Alcatel-Lucent 2010
Outline
FTTx market update
Architectural/wholesale evolution
Next generation fixed access
7 | Sanjay S. Patel - WIK Berlin, April 2010
All Rights Reserved © Alcatel-Lucent 2010
ADSL~12 Mbps
VDSL~50 Mbps
VDSL~50 Mbps
VDSL~100 Mbps
P2P/AE100 Mbps+
GPON100 Mbps+
Drivers: up-front CAPEX, competition, and time-to-market
Fiber to the most economical pointThe pragmatic way
8 | Sanjay S. Patel - WIK Berlin, April 2010
All Rights Reserved © Alcatel-Lucent 2010
300Mbps over 2 pairs @ 400m – Bell Labs “Phantom mode” innovative demo
2
1
0
50
100
150
200
250
300
First line + 2nd line +Phantom Mode +Vectoring +Bonding
Bonded
Phantom Mode
Line 2
Line 1
Industry-first demonstration of 300Mbps@400m over 2 pairsInnovative combination of phantom mode + vectoring
300Mbps in 5 steps
Start with a 1st twisted pair – good for about 80Mbps.
Add a 2nd twisted pair –good for another 80Mbps.
Create a 3rd virtual pair or ‘phantom mode’ pair – another 50Mbps.BUT: bit rates on pairs 1 & 2 drop due to Xtalk from phantom pair.
Apply vectoring (crosstalk cancelation) to boost bit rate by approx 50%.
Bond the 3 links (2 physical pairs + phantom mode) creating one big 300Mbps pipe.
Dow
nstr
eam
bit
rat
e (M
bps)
3
45
400m quad pair 0.6mm
1
23
4
5
9 | Sanjay S. Patel - WIK Berlin, April 2010
All Rights Reserved © Alcatel-Lucent 2010
Point-to-
Point
ActiveEthernet
TDMPON
Central Office Access loop Home
IP
Ethernet switchEthernetswitch
Efficient Outside PlantPassive OSP
No remote powering
Cost-effective FeederSmaller duct sizes, Less RoW,…
CO consolidation
Wavelength per userFew fibers in feeder section
CO consolidation
Best ScalabilityPassive OSP, lowest CAPEX
CO scalability & Consol. (20+ km)PON OLT Optical splitter
IP
Ethernetswitch
More distributed
More concentrated
IP Splicing
PON OLT WavelengthSplitter
IPWDMPON
A Basic Comparison of Four FTTH Architectures
10 | Sanjay S. Patel - WIK Berlin, April 2010
All Rights Reserved © Alcatel-Lucent 2010
Next generation point-to-point fiberHow to improve P2P scalability?
P2P scalability issues… …innovation areas to expect
0
1
2
3
4
p2p AE GPON
Pow
er (W
/use
r)
Main area of innovation for P2P is higher density optics, fiber and connectors.
Increased Capacity
FE → GE → 10GE→ 100GE
High Density optics
Dual Channel SFP
Quad SFP
High Density fiber
Ribbon fiber
Multi-fiber connectors
11 | Sanjay S. Patel - WIK Berlin, April 2010
All Rights Reserved © Alcatel-Lucent 2010
10G PON value proposition – not only capacityCapacity, 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 C+2009-2010
Extended GPON2009-2010
10 Gb/s PON2010-2011
Extended 10 Gb/s PON1
2 3
Three targetapplications
1.FTTB backhaul
2.BusinessAccess
3.Fiber to thebase-station: LTE backhaul
RE
RE
12 | Sanjay S. Patel - WIK Berlin, April 2010
All Rights Reserved © Alcatel-Lucent 2010
No fork-lift upgrade for 10G GPON Wavelength overlay in both uplink and downlink
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
No stranded investments: GPON OLT, ONT and OSP can be reusedNo stranded investments: GPON OLT, ONT and OSP can be reused
1260-1280
1290-1330
1480-1500
1550-1560
1575-1580 λ
(in nm)
GPON up GPON downXGPON up XGPON downCATV
GPON
10 Gb/sGPON
13 | Sanjay S. Patel - WIK Berlin, April 2010
All Rights Reserved © Alcatel-Lucent 2010
10G PON(10Gb on top of 2.5Gb)
WDM PON (as P2P) solutions are subscriber density ‘challenged’WDM PON (as P2P) solutions are subscriber density ‘challenged’
What about 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 PON WDM PON
CAPEX Lowest cost FTTH x3-4 TDM PON
OPEX Low CO Power, CO floor space
EcoLowest 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 Excellent AWG needs to be athermal & reliable
14 | Sanjay S. Patel - WIK Berlin, April 2010
All Rights Reserved © Alcatel-Lucent 2010
Outline
FTTx market update
Architectural/wholesale evolution
Next generation fixed access
15 | Sanjay S. Patel - WIK Berlin, April 2010
All Rights Reserved © Alcatel-Lucent 2010
Private and public hand in handThe layered model
Retail Services(residential, public & business)
Active Network(network equipments,
business & operation support)
Passive Infrastructure(trenches, ducts, fibre)
End-user
Passive Infrastructure Provider
Active Network Provider
Retail Service Provider
Integrated or separated? Passive Infrastructure Provider
Active Network Provider
Retail Service Provider
16 | Sanjay S. Patel - WIK Berlin, April 2010
All Rights Reserved © Alcatel-Lucent 2010
Sharing can take place at many layers, independently of technology
Zooming into the different sharing options“Open Access” is not well defined and is sometimes abused
Network Provider
Application Provider
Content Provider
SLA
IP & Ethernet Wholesale
Wavelength
Passive Infra. Provider
Dark Fibre Provider
Ducts, Sewers, Poles
Dark fiber
Active“Unbundling”
Service“Open Access”
Passive“Infrastructure Competition”
GPON P2P WDMPON
Feeder filling
Open Access (Packet)
Open Access (Wavelength)
Open Access (Fiber)
Open Access (Duct)
17 | Sanjay S. Patel - WIK Berlin, April 2010
All Rights Reserved © Alcatel-Lucent 2010
Infrastructure and service based competitionRequire different degrees of regulatory intervention
NetworkOperator
InfrastructureOwner
Full separationVertically Integrated
Service
Active
Passive
Retail Service
Provider
Retail Service
Provider
Retail Service
Provider
InfrastructureOwner
Passive Sharing
Active Sharing
Retail Service
Provider
Retail Service
Provider
Retail Service
Provider
VerticalInfrastructure
Provider
Vertically Integrated O
perator
Vertically Integrated O
perator
Vertically Integrated O
perator
Vertical ServiceProvider
Vertical ServiceProvider
Vertical ServiceProvider
Competition Infrastructure Competition
Service Competition“Open Access”
Regulated passive
wholesale
Regulated active wholesale
Regulated passive & active
wholesale
Access to public infrastructure
Regulation
18 | Sanjay S. Patel - WIK Berlin, April 2010
All Rights Reserved © Alcatel-Lucent 2010
General principle, based on lessons from DSL: Prepare for competition on the lowest feasible layer
Lesson learnt from DSL: Infrastructure based competition prevails. Bitstream: Entry strategy & When infra competition not feasible
Differentiation
Capacity
QoS/QoE
Innovation
Technology agnostic:
P2P
GPON
WDM PON
Independent migration to NGA
End-to-end fiber trouble shooting
Merits of infrastructure based competition
Competition on lowest possible layer for DSL is gaining ground
Bitstream
Local loop unbundling
19 | Sanjay S. Patel - WIK Berlin, April 2010
All Rights Reserved © Alcatel-Lucent 2010
Multi-fiber to the Central Office/Metro PoPhas CAPEX, OPEX and reliability issues
Network Provider
Application Provider
Content ProviderSLA
IP & Ethernet Wholesale
Wavelength
Passive Infra. Provider
Dark Fibre ProviderDucts, Sewers, Poles
Dark fiberMulti fiber
Multi-fiber in feeder segment
Multi-fiberin terminating segment
CO 1
WDM PON
CO2
GPON
CO3P2P
Central Offices
Multi-fiber to the metro PoP is expensive, with severe operational hurdles and not necessary to stimulate infrastructure competition
Filling ratio: New ducts needed?
CAPEX fiber
Reliability: fiber cut
Synchronous co-investment
Limited competition:# competitors ≤ # fibers
Fiber mgmt in CO
CAPEX floor space
Significant probability
of mis-connection
Fiber Mangement Point
Infra Sharing Point
20 | Sanjay S. Patel - WIK Berlin, April 2010
All Rights Reserved © Alcatel-Lucent 2010
Dark Fiber Sharing in the Terminating SegmentFiber Flexibility Point Supports Any Technology
Duct/sewer/trench sharingin the horizontal OSP
Dark Fiber Sharingin terminating segment
patch panel
Fiber Flexibility PointInfra Sharing Point
CO 1WDM PON
CO2GPON
CO3P2P
Central Offices
Fiber mgmtoptimumRural Urban
€500
€1,000
€1,500
€2,000
CAPE
X pe
r Su
bscr
iber
Civil work OSP
Civil Work Terminating SegmentCO equipment& floor space
CPE
Fiber
Network Provider
Application Provider
Content ProviderSLA
IP & Ethernet Wholesale
Wavelength
Passive Infra. Provider
Dark Fibre ProviderDucts, Sewers, Poles
Dark fiberDark fiber
Duct/sewer sharing in horizontal OSP & dark fiber in terminatingsegment is optimal from a techno-economic point of view
21 | Sanjay S. Patel - WIK Berlin, April 2010
All Rights Reserved © Alcatel-Lucent 2010
Wider benefits of fibre
Reduced telecom costs
E-learning
Innovation in public services:
Healthcare
Elderly care
Rural GDP
Reversed urbanization trend
Simulate collaboration:
between municipalities, public bodies and communities
ICT innovation/R&D
22 | Sanjay S. Patel - WIK Berlin, April 2010
All Rights Reserved © Alcatel-Lucent 2010
Fraction public to private
investment
FTTH policy of competition on lowest feasible layerPublic investment model should consider geographical segmentation
Socio-economic impact of fiber HighLow
Market Driven Policy DrivenRisk Driven
Stockholm
Dense city
Lindefallet
VillageKilafors
JönkopingMedium-size town
HudiksvallSmall town
Services
Active
PassivePublic €
Private €
0 %
100 %
Socio-economic impact Low/Medium Medium High
Investor Payback Time ~5 year ~10 year ~20 year
Public Sector Intervention
Access to infra, RoW,
in-house labeling..
Ducts, sewers,
dark fiber. Active?
Passive, active.
Utility services?
23 | Sanjay S. Patel - WIK Berlin, April 2010
All Rights Reserved © Alcatel-Lucent 2010
Summary
Consumers benefit from competition where they can independently choose ISPs, ACPs , and, can easily switch between providers
Promote competition at the lowest possible layer
Remain technology neutral
Promote innovation
Let providers compete on the merits of their innovation
Do not impose regulatory burden on one technology over another
Apply graduated remedies /public investment based on geographic segmentation in case of market failure to promote Universal Broadband Access
When multiple Retail SPs per subscriber are allowed, the Wholesale SP must coordinate resources among RSPs and resolve conflicts.
Likely that static partitioning among RSPs will be required (e.g., bandwidth per VLAN)
A technology-agnostic, graduated regulatory environment can promote Competitive Universal Broadband Access
A technology-agnostic, graduated regulatory environment can promote Competitive Universal Broadband Access
24 | Sanjay S. Patel - WIK Berlin, April 2010
All Rights Reserved © Alcatel-Lucent 2010
www.alcatel-lucent.comwww.alcatel-lucent.com
25 | Sanjay S. Patel - WIK Berlin, April 2010
All Rights Reserved © Alcatel-Lucent 2010
MiniMDF
Infrastructure Sharing Point
CO2:
CLEC
Sub local-loop unbundlingWidespread agreement that complexity outweighs benefits
SC1
SC2
CO1:
Incumbent
Unbundling cost:
•Must be regulated
•SLU<<LLU
•Difficult collocation or sharing
•High OPEX (maintenance) & CAPEX
•Prevents NGN DSL: Vectoring
•Partially filled DSLAM are not green
•Duct space issues
•Extra Fibers seldom available
•Regulated wholesale offer needed
patch panel
Central Offices
Network Provider
Application Provider
Content ProviderSLA
IP & Ethernet Wholesale
Wavelength
Passive Infra. Provider
Dark Fibre ProviderDucts, Sewers, Poles
Dark fiberSLU
26 | Sanjay S. Patel - WIK Berlin, April 2010
In reality, sub-local loop unbundling is not taking place. Regulated bitstream wholesale offer may be necessary.
Top Related