Ultra Fast Broadband update
John Greenhough Chief Technology Officer
CommsDay Summit: 27 July 2011
July 2011 2
Topics for today:
• Deployment update• Rollout schedule • Retail Service Provider engagement
• Driving productivity for end users
• Building demand• Summary
July 2011 3
UFB: Driving Productivity • World Bank suggests investment in Broadband has high flow‐through to
nationwide productivity: – 10% increase in telecommunications penetration via Broadband :
expected to increase economic growth by 1.2% to 1.4%.
• Indirect / induced benefits: 1.71x capex boost into GDP Source: Studies of US, Germany and UK, Raul Katz, Professor at Columbia Business School
Source: Broadband Infrastructure Investment in Stimulus Packages, Qiang, World Bank 2009: http://www.worldbank.org/
0.43
0.60
0.77
1.21
0.730.81
1.12
1.38
0
0.5
1
1.5
Fixed Mobile Internet Broadband
High income economies
Low & middle income economies
July 2011 4
NZ Broadband vs peers: OECD
Source: www.oecd.org/sti/ict/broadband. As at December 2010. Fixed broadband only.
5
10
15
20
25
30
35
40Broadband subscriptions per 100 inhabitants
NZ mid‐field on broadband penetration vs OECD peers, but slightly ahead of Australia
Ranked17
Ranked18
July 2011 5
Source: Akamai “State of the Internet”, Q4 2010.
2
4
6
8
10
12
14
16
NZ Broadband vs peers: Akamai
NZ well behind leaders on Internet speeds, but also slightly ahead of Australia
Ranked27
Ranked30
Fibre Rich
Average Connection Speed (Mbps)
July 2011 6
Status of deployment and partners
• Whangarei:o ~40km already deployed o Beta trial customers connected in June 2011o ~10 schools targeted this year
• Central North Island: o Hamilton, Tauranga, Wanganui July 2011o Service activation: Q4 2011
• Christchurch:o Deployment expected to commence Q4 2011
• Auckland, Wellington & other locations: o Initial deployment to commence Q4 2011
July 2011 7
UFB deployment underway:
Images: Northpower
25,000km of fibre: • ~40km laid so far • 8 year build to 2019• Priority users by 2015 • Mixture aerial &
underground • Air‐blown fibre flexibility• Proactive & timely
community engagement• Safety ethos
July 2011 8
Local deployment planning: example
Frankton / Hamilton Lake area
Hamilton: Te Rapa areaSource: UltraFast Broadband Limited
• Priority users in focus• Chorus & Enable footprints will convert to UFB
• Deployment plans published as agreed
• Local stakeholder engagement involving RSPs
July 2011 9
Entity coverage:
06/2011 06/2012 06/2013 06/2014 06/2015 06/2016 06/2017 06/2018 06/2019 12/20190
200,000
400,000
600,000
800,000
1,000,000
1,200,000
Non‐priority
Priority
Entities Passed
Source: CFH
Rapid increase in premise coverage expected – both priority (Business, Schools, Health) and non‐priority
1,400,000
1.325m entities passed by Dec 2019
July 2011 10
UFB deployment – underground
Images: Northpower
Fibre, Whangarei
Underground deployment – preferred deployment for greenfields & areas without poles
July 2011 11
UFB deployment – aerial
Aerial deployment – low cost, low visual impact in areas with existing poles
Images: Northpower
Fibre, Whangarei
July 2011 12
Alternative deployment: Kelson trial
Images: Mini‐ & micro‐trenching trial; Chorus / Downer NZ / Marais Lucas, Wellington region Feb 2011. Credits: CFH, Chorus
July 2011 13
Re‐cap: UFB Product Structure Layer 2 Downstream • From 30Mbps• From 2.5 Mbit/s CIR
Layer 2 Upstream • From 10Mbps• From 2.5Mbit/s CIR
Video: Multicast (IP) &/or Broadcast (RF)
Quality of Service: • CIR (from 2.5 Mbps)• EIR
Ports: • 1 x Video (RF), 1 x Wi‐Fi
(optional) • 4 x Ethernet • 2 x Phone
Redundancy / Resilience products
Service Level AgreementsAvailability, repair time, connect time, Layer 2 traffic
Single POI
Co‐lo
catio
n
Layer 1 Dark Fibre• Point‐to‐point• Point‐to‐multipoint
(from 2020)• Non‐building access
points
Wholesale products include: 30/10 Mbps Entry Level Consumer100/50 Mbps Premium Consumer 100/100 Mbps Small to Medium Business 1G/1Gbps Big Business10G/10 Gbps Enterprise
July 2011 14
Product and price: Residential
TelephonyCommitted Data (CIR) Upstream DataDownstream DataWholesale Price
Copper POTS (voice) + ADSL2+
1 line 45 Kbps850 Kbps
10‐13 Mbps~$60
Fibre UFB 100/ 50
2 lines2,500 Kbps50,000 Kbps100 Mbps
$55
Improvement
+100%>60 times>60 times10‐7 times
Note: Wholesale prices per month ex GST.
• UFB offers vastly superior product for lower wholesale price• Retail prices set by Retail Service Providers but will reflect wholesale input costs
July 2011 15
Downloads: (minutes) Uploads: (hours)
Genuine UFB speeds will greatly improve user experience
3750 photos 1875 songs DVD 4.7GB
Avatar 3D BluRay 1080p HD: 14GBNote: Example assumes maximum EIR with 10% congestion; UFB 100/50 with 2.5M CIR.
FlicKr my Photos 32.5GB
Back‐up my Laptop 175GB
Note: Example assumes each product is at maximum available CIR.
How long does it really take?
July 2011 16
Product and price: Business
$750
$1,500
$380 $455
• UFB offers businesses symmetric services for much less than current prices
• Will enable: o cloud computing, o improved WAN mgt (particularly WAN
tails in smaller towns), o IP telephony / unified comms etc.
• Much wider access for Councils, Businesses, Health providers etc.
Note: Wholesale prices per month ex GST.
100 Mbps 1 Gbps
Current market prices (CBD & Metro)
Year 1 UFB price
$1200
$600
July 2011 17
UFB productivity benefit:
Symmetric UFB products will reduce dependence on local hardware:
• Back up • Business continuity / disaster recovery• Extending Remote Working• Coordination across multiple sites
July 2011 18
Retail Service Provider engagement
While a “Reference Offer” wholesale agreement is still being agreed, a number of RSPs have already concluded agreements to sell UFB services
• January: First draft Wholesale Services Agreement (WSA) released
• April: Industry workshop chaired by TCF • May: Definitive UFB partnering agreements• June: Further WSA version released• July:
o Consultation workshops on General Terms chaired by TCF o Draft Supporting Documents (Ops Manual, Service Descriptions, pricing detail)
released • August: Further consultation on Supporting Documents. • Late August: Target for completion of WSA and v1.0 Supporting Documents
July 2011 19
Retail plans emerging:
Example: Uber Group, Whangarei: • Established wireless broadband provider • Delivering broadband over Northpower fibre since 2010 • New retail plans announced 21st July:
– 50Mbps symmetric with 150GB data cap: $99 including GST – 50Mbps symmetric with 250GB data cap: $199 including GST – Offered to both residential and business customers– Free local calling – 12 month term – Available on Northpower UFB
July 2011 20
Critical Success Factors for RSPs:
• Provide services “on net” where possible• Keep contention ratios low• Make data caps substantial – appropriate for UFB speeds• Provide a high quality service, as fairly easy to switch • Support local peering & caching, especially in smaller towns • Bundle & package ancillary services to be a “one stop shop”
July 2011 21
UFB allows RSP to innovate & manage solution
NNIONT
WWWBackbone
RSP cloud
Cache
PoI
Back‐upVideo Voice
UFB Candidate Area 1
Security etc.
PoI
NNICIR
CIRHousehold
Corporate Office
UFB Candidate Area 2RSP backhaul & cloud
Low contention, “private cloud” offers most likely to succeed
Cache
RSP visibility & network management
July 2011 22
UFB usage: Case Study
July 2011 23
UFB productivity benefit:
• Cloud computing• Higher speed WAN tails• IP Video Conferencing • Export‐oriented (ERP, sales & marketing) • Supply chain improvement, cost reduction • Centralising IT Reducing Cost
CFH / TUANZ survey: 80%+ of surveyed businesses intend to take up UFB within 1 year of availability
Source: CFH / TUANZ, Dec 2010
July 2011 24
UFB: Driving Productivity: Auckland/BOP (BERL)
Early rollout = 2012Delayed rollout = 2015
Source: BERL, Auckland & Bay of Plenty Councils, July 2011.
Auckland / BOP report expects economic gains, timely roll‐out, adoption and uptake of UFB
July 2011 25
Demand side initiatives:• Identifying and aggregating demand• Tail substitution – DSL to UFB • Co‐marketing between RSPs & LFCs• Developing usage case studies• Exploring concept for mobile UFB Experience Centre• Researching innovative usage / apps using UFB • Seeding community hubs• Building local ICT capability • Seeking role models & advocates in usage
CFH and UFB deployment partners are building a number of demand side initiatives
July 2011 26
Digital leadership in action
Whangarei
AucklandHamilton
Tauranga
New Plymouth Napier‐Hastings Wanganui
WellingtonNelson
Christchurch
Dunedin
Invercargill
Digital Leadership Forum in action
Digital Leadership Forum being explored/ instigatedOther digital strategy initiative(s)
Many cities & towns have local initiatives underway to make the most of UFB, RBI and local fibre builds
NOT EXHAUSTIVE
Digital Leadership Forum: Example of digital leadership initiative Purpose: Brings together local stakeholders on demand & supply side to realise UFB benefits
Objectives: To develop & execute a strategy to realise local economic development goals using UFBOpportunities for TLAs to: Assist & accelerate deployment Communicate UFB Map areas of highest demand Source local case studies Lead by example, as fibre users
July 2011 27
Community Awareness Workshops:Purpose: • Education and information sharing • Demand stimulation• Focus on both connection and usage ‐case studies
• Local point of contact for more info
Audience: • Free • Key influencers by sector. End users. • Business, health, schools, residential
Information: • Deployment timetable and process• Local Retail Service Providers • How to get connected
Image: Experience Centre / Spyglass NZ. Not for re‐use
July 2011 28
Summary:
UFB deployment underway & will gain pace
New open access industry structure
Simple product structure Low Wholesale fibre prices RSPs innovating Productivity benefits for end
users Demand building
July 2011 29
Questions?
• Thank you • For further questions, please feel free to email Anna
Verboeket: anna.verboeket <AT> crownfibre.govt.nz
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