GLG Institute Professional Education On Anything. Anywhere.

73
GLG Institute Professional Education On Anything. Anywhere. SM GLGi: FTTx and IPTV Rollout Joseph Savage, Managing Director, Telecom ThinkTank Inc GLG Institute Wednesday, November 29, 2006 Penn Club, New York

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Transcript of GLG Institute Professional Education On Anything. Anywhere.

Page 1: GLG Institute Professional Education On Anything. Anywhere.

GLG InstituteProfessional Education On Anything. Anywhere.

SM

GLGi: FTTx and IPTV Rollout

Joseph Savage, Managing Director, Telecom ThinkTank Inc

GLG InstituteWednesday, November 29, 2006Penn Club, New York

                                     

Page 2: GLG Institute Professional Education On Anything. Anywhere.

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Contents● short list of companies for FTTX deployment  would include: Verizon, AT&T, Bell

South, and all-other-carriers for service providers, and would include:  Tellabs, Alcatel, Cisco, Motorola, Adtran, Corning, ADC Telecommunications and all-other-FTTx vendors.  Topics would include:

●  – Impact of service provider choice of FTTx architecture on their roll out status – on

each service provider vendor list – and on the service provider’s ability to deliver IPTV.

– Effect of current legislation and regulatory status on pace and scale of FTTx deployments

– Early days, but information on take-rates and subscriber satisfaction for FTTH.– Field experience, costs, forecasts and projections – speculation by an

independent industry observer.

Page 3: GLG Institute Professional Education On Anything. Anywhere.

GLG InstituteProfessional Education On Anything. Anywhere.

SM

Joseph Savage is the Managing Director at Telecom ThinkTank Inc, a telecommunications consultancy. He has more than 30 years of experience in telecommunications networking and services. He has been a consultant to equipment vendors, analyst firms, and service providers in the areas of strategic, business, technology and product line planning. Previously, he was the President and Chief Executive Officer at Broadnet Technologies Inc, Radiant Photonics Inc, Geyser Networks Inc and Vice President-Research, at RHK. He has served clients as: Alcatel, Lucent, ECI Telecom, Huawei, SBC, Verizon, Bell South, NTT, British Telecom, and FastWeb.

                                     

Page 4: GLG Institute Professional Education On Anything. Anywhere.

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North America Ramping Up

●USA - FTTP Verizon, FTTN AT&T

●Canada - FTTN and DSL, FTTH SaskTel

●Mexico - Community Trials Underway, Monterrey

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Cable Operators Fierce Triple-Play Competition

●Cable MSOs - $85 Billion Network Investment from 1994 to 2004– Voice Service Deployments Accelerating– HDTV ubiquitous in 2006– DVR, PVR part of service offerings– Interactive offerings increasing

●Pursuing Business Customers– Footprint expanding to offer leased line and IP

Services

●Comcast, Time-Warner, Cox, Cablevision, Rogers, Shaw

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Status of US Connection Access

Source: RVA Render & Associates, LLC 2006

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Source: RVA Render & Associates, LLC 2006

FTTH Homes Passed (Cumulative – North America)

189,000

970,000

6,099,000

4,089,000

2,696,846

19,400 35,700 72,100110,000

180,300

1,619,500

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

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FTTH Homes Connected (Cumulative – North America)

Source: RVA Render & Associates, LLC 2006

322,700

1,011,000

671,000

213,000

146,50078,000

64,70038,00022,50010,3505,500

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

1,000,000

1,100,000

1,200,000

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Overall Take-Rate for FTTH(Cumulative – North America by Year)

Source: RVA Render & Associates, LLC 2006

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Overall Take-Rate for FTTH Non-RBOC(Cumulative – North America by Year)

Source: RVA Render & Associates, LLC 2006

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Competition In Action

-4.1%-3.7%-3.1%

+2.1%

+3.8%+4.4%

+5.1%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

1997 1998 1999 2000 2001 2002 2003

An

nu

al A

cces

s L

ine

Gro

wth

(%

)

Competition Attacking Core Business!

•Loss of Dial-up/Fax lines•Mobile as only line

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Telco Industry Overview andG-PON deployments

●RBOCs – Verizon, AT&T, Bell South●2nd Tier IOCs – Embarq, Windstream●3rd Tier IOCs – Hope City Tel, Windom●IOCs as CLECs – GVTC, Windstream●Overbuilder CLECs – Grande, Knology

There are five segments of North American Telco’s

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FTTH Industry Overview - RBOCs

●Verizon passing 3 million homes per year – Tellabs (BPON/GPON), Motorola (BPON/GPON) and Alcatel (GPON)

●AT&T passing 0.5 million homes per year – Alcatel (FTTN, GPON)

●Qwest has no public FTTH plans●BellSouth adding 150k new homes

per year on FTTC – Tellabs (FTTC)

●Bell Canada –Lucent (FTTN)

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Verizon FTTP Deployment3Q’06 Deployment Status:●5.4M premises passed in 16

states●3.8M premises open for sale

2006 Deployment Objectives:

●Pass 6M premises●5M premises open for sale

2010 Deployment Objectives●Pass 18M premises by 2010●Over 50% of households

FTTP Deployed

Pipeline Variations Affect Vendors QoverQ

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Verizon Access Network Status

$1,021

$850$873

YE 05 YTD Aug 06 YE 06 Target

Cost Per Premises Passed

● Lower material cost

● New & improved technology

● Innovations

● Training & productivity

Terminal

Distribution

Legend:GPON -- Gigabit Passive Optical NetworkOLT -- Optical Line terminal

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Verizon Maintenance (OpEx) Savings

1.01

0.20

Voice & DSL FiOS

Network Report Rate - Outside Plant

80%

Total field maintenance dispatches and OSP-related dispatches showing solid declines

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Improved Home NetworkingToday 2007 and Beyond

New wiring Existing wiring

$1,220

$880$933

'Jan 06 'Aug 06 Dec 06 Target

Cost Per Premises Connected ● Simplified in-home network - no new wires

● Enhanced customer experience & customer interaction

● Simplified installation process

● Evolution toward remote service activation and maintenance

New wiring Existing wiring

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FiOS TV Deployment

FiberServingOffice

ServingOffice

HubOffice

SuperHeadend

Broadcast Video

Voice, Data, IP TV

Voice, Data, IP TV

SuperHeadend

ServingOffice

Splitter

Fiber

2006 Video Transport Deployment Objectives:

● 2 national super headends

● 9 video hub offices

● 292 video serving offices

● 1.8M homes open for sale

•Network delivers RF Video Services•Migrate to IPTV after Technical Issues Resolved•Somewhat better TV Image

Page 19: GLG Institute Professional Education On Anything. Anywhere.

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Mid-Year FiOS Internet Results

1Q'05 2Q'05 3Q'05 4Q'05 1Q'06 2Q'06 2006Target

Subscribers Penetration

375K

12%

725K

15%

70% of subscribers are new to Verizon broadband

2Q’06 Results:● Average penetration in

wire centers open for sales– 6 months = 8%– 9 months = 12%– 12 months = 15%

● Monthly churn less than 1.5%

Verizon FiOS Internet Subscribers and Penetration

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Video Franchise Status

0.9

3.3

6.1

Statewide legislation passed or local franchises granted

Number of Franchises

44

161

300

Households with Franchises(M)

4Q’05 Current 2006 Projected

4Q’05 Current 2006 Projected

Page 21: GLG Institute Professional Education On Anything. Anywhere.

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2006 Target 2010 Target2006 Target 2010 Target

FiOS Data – Early ResultsHomes

Marketed To

17M

725K5M

Subscribers/Penetration %

15%

35-40%

6M – 7M

●55% market share by 2010

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Early FiOS TV Results

4Q'05 1Q'06 2Q'06 YE Target

Verizon FiOS TV Subscribers ●Monthly Churn less than 1.5%

●99.4% subscribe to Premier Tier

●60% have HD and/or DVR●37% subscribe to movie or

sports package●12% of gross sales have

included Home Media DVR

FiOS TV Subscribers

175K

About two-third of subscribers are cable defectors

Page 23: GLG Institute Professional Education On Anything. Anywhere.

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2006 Target 2010 Target2006 Target 2010 Target

Penetration – FiOS VideoOpen for Sale

15M

175K1.8M

Subscribers/Penetration %

3M – 4M

10%

20-25%

Target - 26% market share by 2010

Page 24: GLG Institute Professional Education On Anything. Anywhere.

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FiOS TV Customer Base

Strong Demand for Bundles

● 99% of FiOS TV base has 2nd product

● Bundled line churn is 50% lower than voice-only lines

● 56% of FiOS TV sales include FiOS Internet

9%

11%

Triple Play79%

FiOS TV+ Voice

FiOS TV + Data

FiOS TV Only

Page 25: GLG Institute Professional Education On Anything. Anywhere.

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Compare Verizon and AT&T:

AT&T Verizon

FTT-?

- Node, for upgrades (94% of homes) - Home for new developments (6% of homes)

- Home/Premises – first goal 30 million of 56 million subscribers

Technology FTTN+VDSL, fiber - 3,000 ft from homeIPTV with switched video

ITU G.893 (BPON) => GPON1550-nm AM overlay for bdcst video, AND planning for IPTV

FTTx Cap-Ex

$4 B for 2005 – 2007$250 per FTTN home passed$1000 - 1300 per FTTP home passed

$800 M in 2004, $1-1.5 B in 2005$600 - $1000 per FTTP home passed

Target17 M Homes passed with FTTN in 20081 M Homes with FTTH in 2008

12 M homes passed by 200835 M customers passed by 2020

Fiber Demand

1-1.5 M Fiber-km per year 4-8 M Fiber-km per year

% Aerial Plant

25% 45%

Other factors

Acquisition of Cingular, AT&T

Says vid. franchises unnecessary

Cites operational expenses

Filing for video franchises.

Page 26: GLG Institute Professional Education On Anything. Anywhere.

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AT&T and Bell South

●AT&T – FTTN passing 18 million homes by 2008 (behind schedule)– New technology issues (VDSL, MSoft)– Cost of Outside Plant higher than planned– U-verse and Home Zone initiating– 1 million FTTH (Alcatel 7342 B/G PON)– Video Transport in Place, VSO’s in

construction

Page 27: GLG Institute Professional Education On Anything. Anywhere.

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AT&T and Bell South

●Bell South – Waiting to be Acquired– Historical Leader of Fiber-in-the-Loop– History of FTTC Deployments (150,000 per

year in greenfields)– Single customer for

Tellabs/AFC/Marconi/Reltec FTTC products (new generation=committed levels?)

– Assumed will adopt AT&T FTTN style

Page 28: GLG Institute Professional Education On Anything. Anywhere.

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Bell Canada & Qwest

●Bell Canada – only customer for Lucent Stinger products (Lucatel merger issues)– Committed to FTTN architecture, “split

node” migration to FTTH– FTTN issues with HDTV– Voip from CATV MSOs very successful

Page 29: GLG Institute Professional Education On Anything. Anywhere.

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Bell Canada & Qwest

●Qwest Limited by debt– Recently issued RFI for GPON FTTH

equipment– Pushed by Planned Community Builders– Uses Alcatel xDSL and FTTH gear– Numerous Municipal and Open networks

in its area

Page 30: GLG Institute Professional Education On Anything. Anywhere.

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Market Forecast - KMI

FTTP Forecast USA

0 0 0 0 0 12 3

4

7

10

13.4

0.0 0.0 0.00.0 0.1

0.2

0.40.6

1.1

1.5

2.0

2.5

0

2

4

6

8

10

12

14

16

18

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Su

bs

cri

be

rs (

mil

lio

n)

FTTP -- AE

FTTP - PON

AE – Muni’s, Utopia, OverbuildersPON – RBOC’s, IOCs, Utilities

2007 transition year BPON to GPON

Almost zero GEPON

16 million subscribers in 2011

Page 31: GLG Institute Professional Education On Anything. Anywhere.

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AE & PON FTTH Vendors

North American Market Share

World Wide Packets, 1%

Other, 8%

Alloptic, 3%

Allied Telesis, 5%

Wave7 Optics, 5%

Alcatel, 6%

Tellabs (AFC), 53%

Motorola, 8%

Calix/OSI, 11%

All Tiers of Operators

Page 32: GLG Institute Professional Education On Anything. Anywhere.

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The Rest of the MarketIOC Industry Overview

●Three Groupings– 2nd Tier Multi-State holding Companies

• Embarq, Frontier, Century, TDS…

– 3rd Tier Single State, Single Franchise IOCs• Paul Bunyan Tel Coop, Farmers Tel, ……

– Overbuilders and Municipalities• Knology, Bristol VA Utilities, ShenTel, GVTC,

Comporium, Grande Communications…….

Page 33: GLG Institute Professional Education On Anything. Anywhere.

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Telco Sources of Revenues

LocalService (18%)

Access (45%)

USF(35%)

Other(2%)

LocalService (82%)

Access (14%) Other

(4%))

RBOCSmall IOC

Drives different competitive dynamics for smaller Telco’s

Page 34: GLG Institute Professional Education On Anything. Anywhere.

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2nd Tier IOC Market

6th largest LEC

3.4 million access lines in 16 states

Largest Multi-State IOCsLargest Multi-State IOCs

5th largest LEC

7.1 million access lines in 18 states

8th largest LEC

2.4 million access lines in 22 states

7th largest LEC

2.5 million access lines in 24 states

Largest Multi-State IOCsLargest Multi-State IOCs

Valor and AllTel

Approximately 20 customersSmallest is Greenpoint – 200k lines

Page 35: GLG Institute Professional Education On Anything. Anywhere.

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2nd Tier IOC Market

Embarq was formed in 2006 through the spin-off of Sprint’s landline business and Sprint North Supply.

HQ in Overland Park Kansas

7.1 million access lines in 18 states – Indiana, Florida, Delaware, Kentucky, Kansas, Missouri, Nebraska, New York, Nevada, North Carolina, Ohio, Oregon, Pennsylvania, South Carolina, Wisconsin and Texas.

Page 36: GLG Institute Professional Education On Anything. Anywhere.

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2nd Tier IOC Market

3.4 million access lines in 16 states – Alabama, Arkansas, Florida, Georgia, Kentucky, Mississippi, Missouri, Nebraska, New Mexico, New York, North Carolina, Ohio, Oklahoma, Pennsylvania, South Carolina and Texas.

Windstream was formed in 2006 through the spin-off of Alltel's landline business and merger with VALOR Telecom.

HQ in Little Rock, Arkansas

Page 37: GLG Institute Professional Education On Anything. Anywhere.

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2nd Tier IOC Market

Frontier is the nation's 7th largest telecommunications provider offering local, long distance, and Internet access services in 24 states over 2.5 million access lines HQ Citizens Tel in Chicago, Illinois

Century Tel is the nation's 8th largest telecommunications provider offering local, long distance, and Internet access services in 22 states over 2.4 million access lines HQ in Monroe Louisiana

Page 38: GLG Institute Professional Education On Anything. Anywhere.

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CO Switch Market Segments

0-5K (70%)

5-10K (9%)

>10K (21%)

<1.1 K>

<30.9 K>

<6.2 K>

• Base: 23,650 switches – average CO line size - 10.5 K

• 70% of CO switches are “small”

• 56% of “small” COs in IOCs

• 18% of small COs in VZ-GTE

• 26% in other RBOC’s

• Nortel, Lucent and Siemens are dominant vendors

• Several secondary suppliers (Ericsson, NEC, AE…..)This information will relate back to

Access product requirements later in the presentation.

Page 39: GLG Institute Professional Education On Anything. Anywhere.

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Hosts/Remotes Dominate Small Telco's’

Hosts(16%)

Remotes (54%)

Std-Alone (26%)

Tandems (4%)

• 54% of All Switches Are Remotes

• Average >3 Remotes Per Host

• 70% of Switches Are In Host/Remote Associations

Complex migration from current to next-generationIP-centric network architecture – drives big-box product selection

Page 40: GLG Institute Professional Education On Anything. Anywhere.

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FTTH Deployment Plans

●2nd Tier Independent Operating Companies– Embarq – planning G-PON in 2007– TDS – limited trials in 2006

• Tennessee, Georgia, Oregon and Washington

– Citizens - limited trials in 2006– Windstream - limited trials in 2006

Page 41: GLG Institute Professional Education On Anything. Anywhere.

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2nd Tier IOC Access Market

●Capital Expenditures for Tier 2 was $5 to $6 Billion in 2005

●DSLAM/DLC/FTTx portion was 25% to 30% ($1.4 Billion to $2.4 Billion

●Baird Survey indicated CapEx growth of 10% per year in FTTx spending segment

Page 42: GLG Institute Professional Education On Anything. Anywhere.

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IOC Industry FTTH Overview

●April 2006 Render Vanderslice Data– Non-RBOC Homes Passed – 570,000

(of 4.1 million 14%)

Non-RBOC Homes Connected – 241,000 (of 671,000 36%)

Page 43: GLG Institute Professional Education On Anything. Anywhere.

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2nd Tier IOC FTTx Vendors2nd Tier IOC Market Share

Calix, 25%

Entrisphere, 23%

Tellabs (AFC), 26%

Alcatel, 18%

Other, 8%

Page 44: GLG Institute Professional Education On Anything. Anywhere.

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2nd Tier IOC Favorable

●Central Purchasing/Decision Point– Technical Staff– Purchasing for multiple states

●Not Tied to RDUP Funding●Easier to get video franchise, often

cellular provider●Less complex EMS/OSS requirements

Page 45: GLG Institute Professional Education On Anything. Anywhere.

04/08/23 TTTCo FTTX Status - 45

3rd Tier IOC Market

Page 46: GLG Institute Professional Education On Anything. Anywhere.

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3rd Tier IOC Industry Overview

IOC Segment● 1,300-1400 Independent Telco's

(IOC)● IOC’s overbuilding adjacent territory● 1,150 Municipalities● Developers/Overbuilders● Segment has approx. 28M homes – 9

million 3rd Tier● FTTH passes 1-2% of homes today● 10-15% homes passed by 2010

70M RBOC Core

28M Households in IOC Segment

20M clustered rural

4M Rural4M Muni Owned Urban

111 M Total U.S. Households

Sources: U.S. Census Bureau; FCC, 2005

Page 47: GLG Institute Professional Education On Anything. Anywhere.

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3rd Tier IOC Market Status

●83% responded Yes to an NTCA survey “Will you increase the amount of fiber in your access network in the next five years?”

●Baird report: “Tier 3 carriers are in the early stages of an upgrade cycle with the greatest spending on next-gen equipment likely in the next two years.”

Page 48: GLG Institute Professional Education On Anything. Anywhere.

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3rd Tier IOC Market Favorable

●Funding for rural IOCs from Universal Service Fund and Rural Utility Service Loans

●Usually have CATV Franchise and Cellular Operations as well

●HITS and NCTC partnerships●Enthusiastic Local Support

Page 49: GLG Institute Professional Education On Anything. Anywhere.

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3rd Tier IOC Market Statistics●3rd Tier IOCs

– 1,300 – 1,400 small operators– 8 million subscriber lines – long loops– Average access lines – 6,250 35 Emp’s– Max: 35,000 lines Min: 700 lines– Total Capital Expended by Tier 3 in 2005 -

$3 Billion (average $2.3 Million per operator)

– DLC/FTTX/DSLAM – 42% of CapEx ($1.26 Billion)

– Segment CapEx growth – 15% per Yr

Page 50: GLG Institute Professional Education On Anything. Anywhere.

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Role of Rural Utility Service

●RUS funding tied to purchase of products on RUS-approved list

●Some qualifications for “USA content” in the listed products

●Some loan programs not tied to listed products

Page 51: GLG Institute Professional Education On Anything. Anywhere.

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Role of Rural Utility Service

● USDA Rural Development continues to provide many programs for financing rural America's telecommunications infrastructure. The traditional "telephone" loan program, consisting of hardship, cost of money, and guaranteed loans, finances voice telephone service, and since 1995, every telephone line this program has constructed has been capable of providing broadband service

● http://www.usda.gov/rus/telecom/materials/index_listomat.htm – Materials Index– Wire and Cable Section 1– Housings, Splice Cases, etc. Section 2– Miscellaneous Splicing Materials Section 3– Electrical Protective Devices Section 4– Access, Central Office, & Transmission Equipment, Wireless Networks, Electronic Network

Elements Section 5– General Hardware Section 6

Questions concerning the Listing of Materials please contact Norberto Esteves at email:[email protected].

Page 52: GLG Institute Professional Education On Anything. Anywhere.

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Telco Associations Are a Key Channel to 3rd Tier IOCs

●Telecommunications Industry Association - TIA

●United States Telephone Association – USTA

●National Telecommunications Cooperative Association – NTCA

●OPASTCO●Regional – i.e. TANE

Page 53: GLG Institute Professional Education On Anything. Anywhere.

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Telco Associations

●Telecommunications Industry Association - TIA

●United States Telephone Association – USTA

●National Telecommunications Cooperative Association – NTCA

●OPASTCO●Regional – i.e. TANE, Texas

Telephone Assn.

Page 54: GLG Institute Professional Education On Anything. Anywhere.

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National Telecommunications

Cooperative Association

● The National Telecommunications Cooperative Association (NTCA), "the voice of rural telecommunications," represents more than 560 small and rural telephone cooperatives and commercial companies.

– 2006 TelcoTV Conference & ExpoNovember 6-8 Dallas, TX

 – 2007 Broadband Summit

January 10-12Dallas, TX

– 2007 VoIPossibilities Conference

April 10-13Minneapolis, MN

Page 55: GLG Institute Professional Education On Anything. Anywhere.

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OPASTCO● OPASTCO is a national trade association representing more than 550 small,

independently owned local exchange carriers (LECs) and their affiliate telecommunications companies.

● Primarily serving rural areas of the United States and Canada, these commercial telephone companies and cooperatives range in size from fewer than 100 to as many as 100,000 access lines and collectively serve more than 2.5 million customers.

– OPASTCO 44th Annual Winter ConventionJanuary 13-17, 2007, Disney's Grand Floridian Resort & Spa, Orlando, FL

– OPASTCO 44th Annual Summer Convention and TradeshowJuly 14-18, 2007, Anchorage, AK

– OPASTCO 45th Annual Winter ConventionJanuary 12-16, 2008, Phoenix, AZ, JW Marriott Desert Ridge Resort & Spa

Page 56: GLG Institute Professional Education On Anything. Anywhere.

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Competitor Product Review

● RBOC GPON Suppliers– Tellabs– Alcatel– Motorola

● Multi-State 2nd Tier IOCs– Calix, Entrisphere, Tellabs– Adtran, Alcatel

● 3rd Tier Small IOCs– Calix, Entrisphere, Tellabs– Telstrat, Zhone, Pannaway– Occam, Wave7

● RBOC “Wanna Be’s”– Adtran, Lucent, Nortel,– Siemens, Fujitsu, Ericsson– Cisco, Hitachi, NEC– Entrisphere

● Non-IOC Innovators– Alloptic, Wave7, Flexlight– Packetfront, Allied Telesis– Cisco, World Wide Packets– Amedia, Telco Systems

Page 57: GLG Institute Professional Education On Anything. Anywhere.

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Calix – OSI Product

FiberPath Residential ONT’s• Configurations

FiberPoint 502/504 Two or Four Line POTS 10/100BaseT Auto sensing Ethernet Supports 8 DHCP, 8 Static IP, 5 PPPoE Clients and 8 Subnets Supports 8 IPTV Set Top Boxes IGMP Compliant Optional HPNA V3 – Cat 3 or Coax

FiberPoint 522/524 – All Features from Above Plus RF Modulated Video – 54 to 860 MHz Supports Telco, IP and RF/IP Return

Claims 60% of 3rd Tier PON Market in 2006

Page 58: GLG Institute Professional Education On Anything. Anywhere.

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Calix – OSI Product

FiberPath 590 OLT+

• Capacities Max Capacity = 8 GPON Cards 2 or 4 Port GPON Gig-E input 32 PONs = Up to 1,024 ONT’s Gig-E Interface – 1 per GPON CardGig-E Aggregation for Remote Transport ServicesOC-12/48 for Remote Transport Services• Data ProvisioningBridged or Routed – supports PPPoE and or DHCPQoS – Voice, VoIP, Streaming Video, TSL, DataIPTV – IGMP v2 Aware

• Integrated Voice GatewayGR-303 Groups (up to 4)4 DS1’s per Quad T1 CardVoIP and SIP capable

• Full Line of Copper Service Cards • Active and Protect CPU’s• -48 Volt Redundant Power• Network Management Interface and Dry Contacts

Page 59: GLG Institute Professional Education On Anything. Anywhere.

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Calix – OSI Product

Central FiberPath 590 OLT+

FiberPath 590 OLT+ Rural &

Mixed Plant

OC - 12/48

Remote FiberPath 590 OLT+

FiberPath ONT

Voice, Video & Data

GPON

TWP

ADSL 2+

Voice, Video & Data

Going to Gig-E Uplinks

Page 60: GLG Institute Professional Education On Anything. Anywhere.

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Higher margin functionality migrating from home into the FTTH network

Moving in to the FTTH Access Network

VoIP InterfaceHome Networking Element Management Service ManagementIPTV/VoIP ApplicationsQOS in HomeMoCA interface

…..

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Calix C7 BLC

●Slot utilization– 20 – universal slots– 2 – common control slots– 1 – management interface slot

●Universal switching matrix– DS0 cross-connect

• 11,700 DS0s

– STS cross-connect• 1,056 STS-1s

– Asymmetrical packet fabric• 50Gbps egress (multicast)• 2.4Gbps ingress

●Backplane architecture– Up to 10 Gbps to / from every slot– 24 fiber terminations per slot– 24 metallic terminations per slot

Big Box Product – 26% of 2nd Tier IOC’s

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Calix Product Review

Page 63: GLG Institute Professional Education On Anything. Anywhere.

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C7 BLC Capabilities– Voice switches

• GR-57• GR-8• GR-303

– DMS-100/ DMS-10 / 5ESS / EWSD / GTD-5

• Softswitch interfaces– GR-303 / H.248*

– ATM Switches• DS1 UNI• DS1 (IMA) UNI• DS3 UNI/NNI

• OC-3c / 12c / 48c UNI/NNI

– Routers• 10/100 Ethernet*• GE Ethernet*• OC-3c / 12c / 48c UNI/NNI

– Transport network• OC-3 SONET• OC-12 SONET• OC-48 SONET• OC-192 SONET*

Class 5Class 5SwitchSwitch

SoftSoftSwitchSwitch

ATMATMSwitchSwitch

IPIPRouterRouter

CoreCoreNetworkNetwork

Page 64: GLG Institute Professional Education On Anything. Anywhere.

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Entrisphere BLM 1500 Solution

BLM 1500

EntriView EMS

SONETClass 5 Switch

ATMSwitch

Softswitch

IP Switch

Phone

PC

PBXFTTP/FTTC

Services:

• POTS

• PON

• Video

• HiCap

• ADSL2+

• ADSL

• Ethernet

• Specials

POTS, ADSL, ADSL2+, DS1

BLM 1500

BLM 1500

VoIP H.248

GR-303TR-08

FTTN

ADSL2+ VDSL

VDSL2

BLM 1500 integrates:

• NGDLC/DSLAM• PON• Packet Voice Gateway• SONET / GigE transport• IPTV with embedded IGMP

GigE

Page 65: GLG Institute Professional Education On Anything. Anywhere.

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BLM 1500 Functions and Services●Architecture

– 60 Gbps non-blocking redundant switching fabric

– 2 Switch Fabric packs are the only required commons

– 16 universal application slots for network or subscriber interfaces

– 3 Gbps full duplex connection from the fabric to each application slot

– NEBS III and GR-487 Cabinets– 3 shelves in a 7’ bay

●Topologies– Integrated ADM functionality– SONET, GigE, ATM, and TDM– Copper and fiber feeds– OC-48 ring, star, point-to-point– Supports up to 16 RTs per COT

●Integrated voice gateway– GR-303 & TR-08– H.248 Softswitch Interface– Lucent 5ESS, Nortel DMS100, AGCS

GTD5, Siemens EWSD certified

●Management– TIRKS, LFACS, NMA, TEMS, SWITCH/DLE– Server-based scalable EMS– TL1, CORBA– Virtual Network Elements*

● Aggregation & Grooming – Non-blocking DS1 and DS0

switching– 3/1/0 grooming– ADSL, ADSL2+ ATM, and Ethernet– OC-48, ATM DS-3c & OC-3c– ATM to Ethernet bridging

● Services– POTS & Specials– PON– ADSL / ADSL2+– DS1 and DS3– Fast Ethernet– Gigabit Ethernet– Integrated POTS & DSL Loop Test

● Video– Switched digital and RF overlay

support– Native packet multicast with

embedded IGMP– High speed OC-48 and GigE

transport– ADSL2+ and PON broadband

interfaces

● Ethernet– 100Mbps & Gigabit Ethernet– Transparent LAN Service,

VLANs* Virtual Network Elements are patent pending

Page 66: GLG Institute Professional Education On Anything. Anywhere.

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Wave7 Product Review

L2/L3 SwitchIP Gigabit Ethernet

LMC-RM

LMG

CPEs per LMC:LMC-RM is 192

LMC-RM

Group LMCs

RF: 1550 nm, 50 - 860 MHzIP/Ethernet: 1310 nm, 625 Mbps

CPE: Hardened or Indoor

Subscriber Interfaces:10/100BASE-T Ethernet

RF 50 - 850 MHzPOTS

RF Video50 - 870 MHz

Central Office or Hub

LMG

Distributed PON

Centralized PON

Up to 20 kmbetween OLTand ONTs

Up to 20 kmbetween OLTand ONTs

Up to 86 kmbetween COand OLTs

L2/L3 SwitchIP Gigabit Ethernet

LMC-RM

LMG

CPEs per LMC:LMC-RM is 192

LMC-RM

Group LMCs

RF: 1550 nm, 50 - 860 MHzIP/Ethernet: 1310 nm, 625 Mbps

CPE: Hardened or Indoor

Subscriber Interfaces:10/100BASE-T Ethernet

RF 50 - 850 MHzPOTS

RF Video50 - 870 MHz

Central Office or Hub

LMG

Distributed PONDistributed PON

Centralized PONCentralized PON

Up to 20 kmbetween OLTand ONTs

Up to 20 kmbetween OLTand ONTs

Up to 86 kmbetween COand OLTs

Wave7 Last Mile LinkLML is proprietary, not standards-based PON

Focused in 3rd Tier

Page 67: GLG Institute Professional Education On Anything. Anywhere.

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Broadband Delivery at Every Edge

Central Office

Remote Terminal

Remote OSP DSLAM

MDU Terminal

Raptor 100 OSP

Raptor 100 MDU

MALC 319

MALC or Raptor719 CO

Pushing broadband deeperInto the loop with fiber

ZHONE Technologies

Page 68: GLG Institute Professional Education On Anything. Anywhere.

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Alloptic Product Review

Edgegear 2000

Edgegear 200

The edge 200 is a head-end controller. It is a 16 gigabit Ethernet switch, a 2 PON OLT, and a TDM cross connect in a 2RU environmentally hardened package.

The edge 2000 holds 8 Optical Line Termination cards (OLTs) (16 Gigabit EPON networks) There are four NIC Cards connecting to multiple Data and TDM telephony service providers. The edge2000 chassis supports 500 ONUs, 4,000 data VLANS, and 2,500 TDM POTS services.

Page 69: GLG Institute Professional Education On Anything. Anywhere.

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Small IOC FTTH Market Share3rd Tier IOC Market Share

Telstrat, 9%

Pannaway, 7%Paradyne,

11%

Occam Networks,

11%

Adtran, 11%

Calix, 27%

Tellabs (AFC), 14%

Other, 5%

Motorola (Next

Level), 5%

Page 70: GLG Institute Professional Education On Anything. Anywhere.

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FTTx Deployment Analysis - North America

November, 2006

Thank You For Your Attention

www.tttco.com

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Gerson Lehrman Group Contacts

Nick Goodman

Vice President

Gerson Lehrman Group

850 Third Avenue, 9th Floor

New York, NY 10022

212-750-1878

[email protected]

Christine Ruane

Senior Product Manager

Gerson Lehrman Group

850 Third Avenue, 9th Floor

New York, NY 10022

212-984-8505

[email protected]

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