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Fiber to the Home:Enabling Innovation & Growth

Stuart Elby, PhDVice President -- Technology

© Verizon 2009, All Rights Reserved2

Communications TrendsAccess Bandwidth Consumption

Infonetics, Alcatel-Lucent

3G

4G

2/2.5G


5 10 15 20 250 100510152025100Mbps

File Sharing, Home Video Sharing/Streaming

Multi-Player Gaming, Interactive Distance Learning

Large File Sharing; P2PHDTV VOD

Next Gen HDTV

Video Conferencing, Premises Surveillance

Telemedicine

SDTV VOD, Telecommuting

Premises Web Hosting

Next Gen 3DTV

Applications and Media Bandwidth

Web Surfing

Real Time SDTV, Network PVR

FTTPHFCVDSL2

ADSL2+ADSL

Dial-Up

1000

Upstream Downstream


Fiber to the Premises

OLT(Optical

LineTerminal)

ONT(Optical Network

Terminal)

Central Office

Customer Premises

Video RF QAM

Data

Voice

1x32

Optical Splitter

Optical Couplers (WDM)

DownstreamUpstream

Voice, Data & VOD@ 622 Mbps (BPON)@ 2.5 Gbps (GPON)

Broadcast Video(860 MHz equiv.)

Voice and Data@ 155 Mbps (BPON)@ 1.2 Gbps (GPON)

Services & Bandwidth

1310 nm 1490 nm 1550 nm

VOD

EDFA Optical Amplifier

Future-Proof Outside Plant• Passive• Glass• Terabits of Capacity

Fiber Distribution Hub (FDH)

IP


CircuitSwitch

FTTP Deployment

SplitterHub

Overlay Build ONTONT

ONTONT

ONT

Green Field Build

ONT

ONT

ONT

ONT

ONT

ONT

OLT


FTTP Architectures for Multi Dwelling Units

Broadcast Video over CoaxInteractive Video and Data over VDSL or Ethernet

“Common” ONT

BasementOr Floor

FDH

Fiber to the Living Unit

SFUONT

SFUONT

SFUONT

SFUONT

FDH

Fiber CableVDSL/Cat3Coax Cable

LEGEND

Optical Splitter

Fiber to the Building


The Verizon Digital Home

CMSCustomer Premises Management

System

BroadbandHome Router(BHR)

Three Key VZ Investments:BHR (Broadband Home Router): Robust network

MoCA (Multimedia over Coax Alliance): Inexpensive installation; operates in 50 MHz channels between 875-1525 MHz.

CMS: Remote management and configuration through standard protocol.


Enabling Technologies

• Digital Signal Processors (DSP)• Semiconductor Lasers• Erbium Doped Fiber Amplifiers (EDFA)• Passive Optical Components (WDM combiners, splitters, connectors)• Bend Insensitive Optical Fiber• Battery Technology

1995

2005


Business Rationale

Construction Cost to Pass

Construction Cost to Connect

ONT Cost

Allocated OLT Cost

Capital Cost Structure of FTTH

Some copper distribution areas require labor intensive rehabOutside plant active electronics have very high maintenance costsAerial outside plant is less expensive to build than buried facilitiesContinuous Internet traffic growth of ~50% per year

Total Costto Pass

Total Cost toConnect


Total Cost of Ownership Savings

ONT

Optical Splitter

POTS,Data & Video

SplitterCabinet

FiberTerminal

CentralOffice

FTTH EndFTTH End--toto--End Savings totals End Savings totals 67%67%

F1 Fiber Cable F2 Fiber Cable

POTS

CentralOffice

F1 Fiber Cable

Splitter

POTS, Data & Video

Modem

Copper Cross Box

DSLAM

SAI Node

A

Power

Data & Video

F1 Copper CableF2 Copper Cable

Fiber-to-the-Node

Fiber-to-the-Home


FTTP Maintenance Costs Savings

Fewer Reported Troubles in the Outside Plant (F1 & F2)– The POTS & DSL Outside Plant NRR is more than 5 times higher than FiOS

Voice & Data

When Troubles are Reported, dispatches occur less often– DSL & POTS Average daily dispatched load rate is almost 2 times higher

than FiOS

– FTTP network detects troubles and self heals

NRR Outside Plant 2005 YTDCombined DSL + POTS 1.05

FiOS NRR - All 0.20

Dispatch Out Rate 2005 YTDDSL & POTS 0.17%

FiOS Voice & Data 0.09%


Deployment Status of FiOS (3Q09)

02468

1012141618

EOY2010Target Homes

Passed

3Q09 HomesPassed

TV Subscribers InternetSubscribers

(Millions)

25% 28.5%

Penetration of homes open for sale


FiOS Architecture Today

IP Network/Internet

MediumHaul

Network

LongHaul

Network

BroadcastLAN

EdgeRouter

VoIP Softswitch

IP QAM& EDFA

Video Cache

VHO(VideoHub

Office)

SHE(SuperHeadEnd)


FiOS Architecture Future

IP Network/Internet

MediumHaul

Network

LongHaul

Network

BroadcastLAN

VHO(VideoHub

Office)

SHE(SuperHeadEnd)

EdgeRouter

Video Cache

Video Cache

IMS

NG-PON10Gbps Up & Down

IP Multimedia Subsystem


IP + Linear Broadcast

Set-Top Box merges IP channel with TV channel to create hybrid interactive experience.

FiOS TV Widgets are small, Internet-enabled applications that run on a FiOS TV Set-Top Box. Widgets are written using the LUA scripting language.


Emerging Advertising Opportunities

Dynamic VOD Ads – Dynamically served pre and post-roll ads accompanying Free VOD content

Interactive TV Ads – EBIF-enabled nationally broadcasted TV ads with interactive capabilities

Hyper-Local Geo-targeted Ads –zip code + 4 with better than the 60% accuracy of IP advertising

Sponsored Widgets – Verizon Developer Network to ‘skin’ widgets

Example: Philadelphia


IMS‐CentricServices Execution

A Platform for Innovation

Services Management

Content Management

ServiceCreation

Developers(Ring 1, 2, 3)

Enablers

App’sAPI’s

Content Providers

Example Enablers

FiOS Broadband + Open Platform + Enablers = Delivering Innovation to Customers


VZ Home Network

HDD recorder

WebCamera

PC

GameConsoles

PersonalStorage

TV / STB

VZ VASPortal

InternetVZ Home Gateway (BHR)

Health careHealth care

Home SecurityHome Security

Media SharingMedia SharingEnergy MgmtEnergy Mgmt

File BackupFile Backup

NASNAS

VZ ConnectVZ Connect

PIMPIM

DECT/VoIPDECT/VoIP

Collaborative Intelligence

IMS-EnabledVerizonNetwork

Operating System

IMS Stack

Java VM (OSGi)

Mobile Linux (LiMo)

r

Java VM (J2ME)

Mobile Handset

FiOS

EvDO, 4G

Mobile Linux (LiMo)

r

Java VM (J2ME)

Network


Developer Website – open to all


Service Genres Communications

Media Access (Including Internet TV/Radio)

Media Sharing

Home / Business Security

Home Automation

Your Companies will Shape the Services

Utility Services

Distribution/Delivery Logistics

Advertising

Gaming

N-Screen

Telemedicine


Summary

• Fiber to the Home is the only technology to meet near term and long term fixed bandwidth demands without additional outside plant investment.

• We are evolving FiOS to continually enhance the user experience (bandwidth, video content choice and quality, services)

• We are opening our networks to accelerate service innovation

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