Geneva, Switzerland, 22 September 2012

FTTx in China – Current Status and Future Prospects

Chengbin Shen,R&D Director,

Shanghai Research Insitute of China Telecom

shencb@sttri.com.cn

Joint ITU/IEEE Workshop on Ethernet - Emerging Applications and Technologies

(Geneva, Switzerland, 22 September2012)

Increasing number of BB subs in China

and Technology Evolution• The migration from ADSL2+ to FTTx or even to FTTH is steadily acc

elerating• In early years, subs not served with ADSL were provided with

Ethernet based FTTB; Currently, subs not served with ADSL are provided with PON-based FFTx

• China BB sub installed base is estimated to reach 180 million active ports by 2014

0

20

40

60

80

100

120

140

160

180

2005 2006 2007 2008 2009 2010 20110%

5%

10%

15%

20%

25%

30%

35%

40%

45%

38

52

66

83

103

126

156

26

37

52

67

84

100

115

total Subs (DSL+FTTX) ADSL Subs Growth Rate (total) Growth Rate (ADSL)

CTC BB sub Growth

83.7M in the middle of 2012The trend is clearly towards increase in BB sub count

0

20

40

60

80

100

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

Number of Broadband Subsribers

2.5

7.4

14.2

21.0

28.4

35.7

44.3

53.5

63.5

76.8

Mill

ion

Relatively low BB penetration in China• China's Broadband Household penetration

(~30%; end of 2011) is lower than that of developed coutries, and is on pair with the world’s average value, but only slightly higher than average for developing countries;

• Great development potential and market opportunity!

Year

China's BB household penetration

2010 23.7

2011 29.5

Broadband Technology Migration Milestones in China

Before 2007, ADSL/ADSL2+ was the dominant technologyIn 2007, CTC and other main operators started massively deployment of fiber access based on "Fiber-IN & Copper-OUT" strategy after China Telecom achieved the all-around and large-scale IOP of EPON GPON and 10G-EPON began deployment after 1G-EPON became mass deployed

2000 2005 2007 2009 2010

10M

50M

100M

ADSL

ADSL2+

10G-EPON

GPON

All these technologies will co-exist in CTC access network

EPON

EPON in CTC network deployments scenarios

Based on comprehensive analysis on TCO ， bandwidth capbility, technol. Trend, etc., China Telecom adopt different deployment mode to local conditions:

Provide to all new businesses •buildings equipped with fiber•FTTO or FTTB scenarios

Residential customer and urban areas

Business buildings and urban areas

Rural areas

Green field (new area)• Stop deploying feeder &

distribution copper wires• FTTB (PON) + Ethernet before

2010; FTTH since 2010 Brown field (existing area)

• (preferred) FTTB (PON) ＋ DSL with copper wire length < 500m before 2010

• Bandwidth target: 8-20Mb/s• some residential cell were upgra

ded with FTTH since 2010

Principally stop deploying feeder copper wiresfiber to the village plus DSL

•EPON (preferred)•P2P

Bandwidth target: >4Mb/s

Fiber-in & Copper-out in CTC networksfrom FTTB/N to FTTH

From 2008 to 2010, through EPON deployment in FTTB/N architecture:1. Customers’ access bandwidth improved significantly2. EPON equipments and ODN technologies were improved, and China Telecom completed OLT distribution in key network points

in 2010, EPON is mature enough and ready for FTTH mass deploymen due to:• attractive equipment price• simplified network engineering• fewer technical challenges• simplified IT services• improved service processand CTC moved to FTTH era

"Fiber-in & Copper-out" Changes in CTC BB network capacity

Ethernet19%

DSL80%

PON1%

2007 Q1, 2011

DSL59%

Ethernet10%

FTTB(PON)26%

FTTH(PON)5%

China's EPON Ecosystem

CTC has played the key role in developing EPON ecosystem in China

ASIC Optics

CTC announces “Broadband China, Optical City” project

On 16 Feb, 2011, China Telecom announced the grand project to accelerate FTTH deployment in China

In three years, CTC will complete fiberization of all cities’ BB networks to achieve the target of 100M to home, 1G to buildingby the end of 12th 5-Years (2015), CTC plans to pass 100+ million homes with FTTH

Progress and planFTTH home pass (new): 2010: 10M; 2011: 30M; 2012: ~25M, FTTH subscribers (new): 2010: 1M; 2011: 5M; 2012: >10MFTTB/N home pass (new): 2009: 7M; 2010: 10M; 2011: 10M;2012: >7M

China's nation broadband strategyThe central government of China is drafting a nation-wide broadband strategy entitled “Broadband China Strategy”. This strategy intends to accelerate China's BB network upgrade and service developmentContent of “Broadband China Strategy”: By the end of 2015, the total number of BB subs

to reach 250M+ Access bandwidth to reach average of 20Mbps for

urban residential users, and at least 4M will be provided for suburban users

By the end of 2020, China will provide advanced BB information infrastructure for all citizens at the international quality level.

In 2012, new FTTH-passed homes will reach 35M+, and more than 50% broadbnad subscribers will enjoy the access bandwidth of no less than 4Mbps

Development & Application of 10G-EPON China Telecom deeply involved in 10G-EPON standardization and product

IOP . In April 2011, CTC achieved 10G-EPON interoperability at system level

10G capable PON will be deployed first to improve MDU’s uplink bandwidth to achieve FTTH-like capacity for each subscriber

More than 500 ports 10G-EPON-fed MDU are already in operation in China Telecom networks. More are on the way.

EPON

40G PON

2009

GPON

10G-EPON

XG-PON1 XG-PON2

2010 2011 2012

Asymmetric &Symmetric

10G GPON

Asymmetric Symmetric, no plan

IEEE Std 802.3av released in Sep, 2009. Commercial 10G-EPON deployment in Q1, 2010

2010.11release XG-PON1 standardCommercial chipset and optical TX: Q2,2012Commercial deployment: end fo 2012

10G-PON based FTTN/C+VDSL2 10G-PON based FTTN/C+VDSL2 plays more

important role in China than ever before Thanks to its high data rate, it is ideal for supporting

data feed for MDU ONU. Current 10G-EPON deployment scenarios are primarily focused on FTTN

VDSL2 and its follow-up technologies is the best cost-effective for brown field upgrade, especially when used with 10G-EPON for backhaul.

10G-PON based FTTN/B+ VDSL2 provides FTTH-like access bandwidth with low cost and simple engineering

Current EPON/GPON based FTTN+ADSL2+ will be migrated to 10G-PON based FTTN+VDSL2 in the near future.

THANK YOU!