Evolution of HFC Network

4th América Móvil Workshop

May 9th 2017, São Paulo

Mads Arnbjoern Rasmussen CTO Telco Cloud and Video

2

Cable broadband is growing 4-5 times faster than cable TV

0,00

2.000.000,00

4.000.000,00

6.000.000,00

8.000.000,00

10.000.000,00

12.000.000,00

14.000.000,00

2009 2010 2011 2012 2013 2014 2015

TV revenue €

BB revenue €

Source: European Broadband Cable Yearbook 2016, IHS

3

We have heard of Google Fiber in the US

4

But now FTTH competiton also gains momentum outside US

5

Strategic options for cable to compete with FTTH

A: Stay on DOCSIS 3.0 • Expensive node splits – soon especially driven by upstream traffic • Assymmetric speeds – no Gbit/s product

B: Migrate to FTTH • Enormous investment • Will take ~10 years

C: Upgrade to DOCSIS 3.1 • Will over an x year time frame cost the same as staying on DOCSIS 3.0 • Capex can be as low as only ~20% of the FTTH investment • Can be rolled out very fast – no new cables • Will provide FTTH speeds to consumers

6

DOCSIS 3.1 architecture and technology choices

DOCSIS 3.1 or 3.0

3.1

CCA or DCA

R-PHY or

MACPHY

Virtual or

Physical CCAP

CCAP or

CMTS

DCA

D-CCAP

MACPHY

Physical

P2P or

PON

10GPON

So Huawei offers

D-CCAP

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Summary of logic behind Huawei technology choices

Why DOCSIS 3.1 Notes

Lower TCO than DOCSIS 3.0 Node splits delayed with >4 years due to more spectrum and higher efficiency

Competition with FTTH operators Due to capability to offer Gbit/s symmetrical products with much lower investments

Backwards DOCSIS compatibility Invest in future proof technology without having to migrate customers

Cable modems with long future 2*US and 2*DS from day 1 (unlike DOCSIS 3.0)

Synchronization possibility (for MBH) New revenues - wholesale

Symmetry for enterprise customers New revenues - BSOD

Ongoing development Full duplex will provide symmetrical capacity reusing 3.1 technology principles

Why DCA Notes

Better SNR Higher modulation means more DOCSIS capacity and even higher DVB-C robustness

Reduced need for central office floorspace Equipment moves to existing fiber node street cabinets

Reduced cooling costs in central office Equipment moves to existing fiber node street cabinets

Why PON Notes

Will provide smooth FTTH migration path OLT also supports xDSL, HA and xPON networks

Saves access fiber Up to 80% compared to ethernet P2P which requires 2 fibers for each remote unit

Why D-CCAP Notes

Analogue fiber replaced by digital Saves trunk fiber, provides IP redundancy, reduces complexity and O&M costs

One platform only for DVB-C, VoD and DOCSIS Saves costs and increases spectrum flexibility

Local DVB-C BC frequency planning Each Service Group can have its own frequency plan

Why MAC-PHY Notes

No complex timing transfer Increases stability

Lower latency Less signal propagation time since MAC is closer to the user

More benefits from future vCCAP Virtualized MAC not realistic in the near future , so OLT virtualization fits best with MACPHY

Why physical MAC-PHY Notes

Better stability Cloud based DOCSIS solutions still need to mature

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Example: TDC Denmark upgrades to 100% DOCSIS 3.1 D-CCAP

• Turnkey rebuild project – 1,2 GHz downstream / 204 MHz upstream

• Full Huawei solution responsibility, incl. 3rd party amps and passives

• Huawei takes over capacity planning and buildout for 6 years

• Very fast rollout – 100% DOCSIS 3.1 coverage EOY 2017

• Target is 95% 4k QAM downstream and 1k QAM upstream

• No analogue fiber left – even in coax plants with no DOCSIS

• Total analogue TV shutoff – executed February 2016

• Huawei U2000 NMS and adaptation to in-house developed NMS

• Support for existing DVB-C QAM based VoD service

• Full spectrum OFDM upgrade possible just with software (5*DS blocks)

• Solution for FM radio service in high US split network agreed (but not used)

• Solution for basic video multiplexing in D-CCAP

• Solution for passive cooling of street cabinets implemented

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Business case drivers – DOCSIS 3.1 D-CCAP

OpEx CapEx Revenues

O&M costs for AM systems No node splits for x years Reduced churn to FTTH

Increased signal

robustness

~10% capacity gain (DCA) Business services

Less CO floorspace Avoid new trunk fiber Mobile backhaul

Less CO cooling Long lifetime cable

modems

Better reputation

HFC refresh less faults

Better PNMless calls

No CMTS HW optimisation

Dismantle video mux

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Short term HFC evolution – ”Smart” diagnosing NMS

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Short term HFC evolution – DVB-C changes to IPTV at 4k launch

•Only one video platform

•50% better use of spectrum

• flow TV channels (SDV)

•Ideal for 4k TV

•Supports ABR and CBR

•Large selection of STBs

Tablet

Smart TV

Multi OSs &

App Stores

PC

Mobile

IPTV/OTT/Hybrid

Linux/Android STB

4G/LTE

Converged Video Platform

IPTV OTT Social TV TV Apps Hybrid TV Content

Aggregation

Internet Managed network

Cable/DTT network

Satellite

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CCAP

IP

Router

Today

Voice

Video

HSI

DHCP TFTP Packet

Cable

Profile IGP

Stat.

OAM

LACP

Alarm CFM

DBA

MAC

MAC

MAC

Forwarding plane

MPLS

OLT

Stat. LACP DBA

PON

PON

Forwarding plane SDNC

DHCP TFTP Packet

Cable

Profile SR/

VXLAN IGP

SDN Controller

Netconf & OF

RESTful

Cloud

Netconf/YANG

Openflow

COTS

EMS

Tomorrow…

CLI or SNMP

non-commodity, closed network

Advanced language NB interface

Software

OSS TL1

OAM Stat LLDP

Software

Open Source Framework

Unified mgnt for

communication,

computing, storage

resource

Software decouple from

Physical Box

vSG

L3

MPLS

QoS

Flow

Tunnel

QoS

Voice

Video

HSI

IP fabric

Simplified and Programmable

Physical Device

COAX

CM CM CM

CM CM CM

COAX

CM CM

CM CM

VLAN

QoS MAC

Stat. DBA

OMCI

Forwarding plane

Fiber

CMC

OMCI

RESTful

Hardware Disaggregation

Software Disaggregation

D-CCAP system

OSS Orch.

ONT

ONT

ONT

Short term HFC evolution – becoming part of the ”Telco Cloud”

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Mid term HFC evolution – Full Duplex

CMTS

or

CMC

Tap Tap Tap

CM

Splitter

CM CM CM CM CM

Splitter Splitter

D1 D2 D3

U1 U2 U3

D1

U2

D2

U3

D3

U1

~39dB ~39dB ~39dB

~90dB ~90dB

~100dB

SG1 SG2 SG3

D2 D3 D1

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Long term HFC evolution – frequencies > 1,2 GHz

2-3GHz Group 1-2GHz Group 100M-1GHz Group

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Copyright©2017 Huawei Technologies Co., Ltd. All Rights Reserved. The information in this document may contain predictive statements including, without limitation, statements regarding the future financial and operating results, future product portfolio, new technology, etc. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied in the predictive statements. Therefore, such information is provided for reference purpose only and constitutes neither an offer nor an acceptance. Huawei may change the information at any time without notice.

Thank you