PON and Ethernet in FTTH Networks: Incompatible or...

PON and Ethernet in FTTH Networks:

Incompatible or Complementary?

March 6, 2008 11:30 a.m. ET

Presented bySponsored by

Copyright © 2008 by Infonetics Research, Inc.

Today’s Speakers

Jeff Heynen

Directing Analyst, IPTV and

Next Gen OSS/BSS

Juan J. Vela

Director, Solutions Marketing

and Strategy

Steven Glapa

VP of Marketing and

Product Management


Agenda

• Market Trends

• The Bandwidth Dilemma

• Moving Forward with Fiber: Assessing the Solutions

• Deployment Approaches

• Conclusions

• Q&A


Trends in FTTH Networks

• Video services driving demand for more bandwidth

• ADSL-ADSL2+ won’t satisfy long-term subscriber bandwidth

demands

• Success of FTTH in Japan, Korea, France, and the US plus

component cost reductions are bolstering the FTTH argument

• That said, many providers still on the fence about FTTH

– High initial costs to pass initial set of homes

– Costs to train labor force

– Opex costs associated with maintaining two networks

– Regulatory hurdles: right of way access, video franchising

• Finally, technology arguments still abound, especially between

Ethernet FTTH and PON

– Capex and long-term opex are major concerns


FTTH Subscribers by Region

Source: Infonetics Research,PON & FTTH Equipment & Subscribers Market Share & Forecasts

0

10

20

30

40

50

Su

bs

cri

be

rs (

M)

CY04 CY05 CY06 CY07 CY08 CY09 CY10CALA

EMEA

Nor

th A

mer

ica

Asia

Pac

ific

Calendar Year

FTTH Subscribers by Geographic Region


Access Network Technologies for

IPTV and Video

37%

47%

53%

0%

21%

5%

11%

5%

26%

21%

16%

5%

79%

26%

37%

42%

53%

21%

74%

0%

16%

16%

16%

26%

32%

37%

0%

11%

16%

21%

0% 20% 40% 60% 80%

FTTH BPON

Cable HFC

WiMAX

FTTH Active

Ethernet

FTTH EPON

FTTNode with

last-mile DSL

FTTCurb with

last-mile DSL

VDSL/VDSL2

FTTH GPON

ADSL2/ADSL2+

Bro

ad

ba

nd

Te

ch

no

log

ies

Percent of Respondents

After 2008

2008

2007

• Both PON and

Ethernet replacing

copper over time

• Multiservice access

networks are the trend

Source: Infonetics Research, Service Provider Plans for IPTV and Video: North America, Europe, Asia Pacific 2007


Critical Aspects to Increase

IPTV Subscribers

16%

16%

5%

0%

32%

21%

11%

16%

37%

5%

21%

53%

42%

42%

32%

32%

47%

5%

5%

5%

11%

11%

16%

26%

0% 20% 40% 60%

Fast channel change

User interface

Operational costs

Scalability

VOD applications

Ease of use

EPG services

Interactive applications

Broadcast video

services

Personalization

Exclusive content

Quality of experience

As

pe

cts

Percent of Respondents

2008

2007

• 3 of top 5 responses

depend on service and

policy intelligence in the

access network

• QoE dependent largely

on access network bandwidth

Source: Infonetics Research, Service Provider Plans for IPTV and Video: North America, Europe, Asia Pacific 2007


Agenda

• Market Trends




• Conclusions

• Q&A


Broadband as a

Competitiveness Issue

Source: OECD, April 2007

1

3

5

7

9

11

13

15

17

19

21

23

25

61.0

45.6

21.7

18.2

17.6

8.8

8.1

7.6

7.5

7.4

7.3

6.2

6.0

6.0

4.8

4.6

4.2

3.1

2.6

2.3

2.3

2.2

1.7

1.6

1.2

Japan

Korea

Finland

Sweden

France

Netherlands

Portugal

Canada

Poland

Norway

Austria

Belgium

Iceland

Germany

United States

Denmark

Italy

Luxembourg

United Kingdom

Switzerland

New Zealand

Ireland

Australia

Czech Republic

Spain

Top 25 Average: 10.4

0.51 subscribers/HH

Korea, with

0.9 subs/HH

Average Broadband Subscriber’s Data Rate, MbpsUS Broadband Penetration Rank


Subscriber Demand Follows a Trend

Source: Jakob Nielsen

1985 1990 1995 2000 2005 2010 2015 2020

100

1 k

10 k

100 k

1 M

10 M

100 M

1 G

10 G

100 G

R² = 0.97

3/3.5G (EV-DO, HSPA)WiMAX, WiFi

ADSL2+, EFM over CuVDSL2, GPON

WDM

DOCSIS 3.0Active E, WDM-PON

Per-Subscriber Data Rate v. Time (bps)

– Multiple HD streams

– HD VOD

– UGC, OTT

– Telepresence

– Ubiquity

– P2P

– Gaming

– IP transition

– FMC


Copper-based Approaches Fall Short

Rate/Reach for Current Cu-based Broadband Access Technologies

25

50

75

100

125

150

175

200 Mbps

Sources: DSL Forum; Zhone testing

VDSL22 bonded pairs

VDSL2

ADSL2+ (2 pr)

EFM (8 pr)

ADSL2+

EFM (1 pr)

0 1.0 2.0 miles0.5 1.5


ARPU vs. Bandwidth:

Pipe Economics Are Critical

cellular voice

wireline voice

satellite data

cellular data

wired broadband

on-demand HD

satellite TV

digital cable TV

10¢ $11¢0.1¢0.01¢

Willingness to Pay per Unit of Capacity Consumed

US$/MB

Sources: US commercial network offers circa January, 2008; Zhone analysis


1950s 2007+

1990s

Narrowband

TDM Based

• Dedicated copper

• Basic services

• CO based

• Pairgain releif

• CO extensions –

UDLC

• Remote electronics

1980s

“Next Generation” with Broadband Upgrades

Mixed Circuit and Cell Structures

• Voice and data

• Optical SONET and

ATM feeder

• Upgrade for BB

service capacity

• Primarily Cu

infrastructure support

1990s

Broadband Evolved

Pure Packet

• Voice, data and IP video

• Packet-based service delivery

model

• Stackable IP services

• Ubiquitous reach

• Optical access and

aggregation

Evolution of Last Mile Access

COFTTH/B, FTTC, FTTNRT

POTS

SLCNGDLC

MSAP


Aggregation and Last Mile Decisions

Network services Aggregation Last mile

Class 5

Softswitch

Internet

PSTN

RF video headend

Media gateway

Business / government:SMB, MTU, large enterprise

Residential: SFR, MDU

POTS

VoIP

RF broadcast video

IP HDTV on demand

Web

Virtual worlds & gaming

Video networ

k DS0 voice

VoIPVideo conferencing

10/100

GigE

Travel

Cellular networ

k

Subscriber premises

?


Agenda

• Market Trends




• Conclusions

• Q&A


Fiber Provides a Path Forward

Rate/Reach for Fiber-based Broadband Access Technologies

Sources: DSL Forum; Zhone testing.

0 2

100

200VDSL22 bonded pairs

VDSL2

ADSL2+ (2 pr)EFM (8 pr)

ADSL2+EFM (1 pr)

1,000 Mbps

300

400

500

600

700

800

900

~50 miles4 6 8

GPON (2.5 G split 32 ways)

Active Ethernet (Dedicated fiber)

WDM-PON (10 G split 32 ways)


Four Common Fiber Access

Scenarios to Assess


FTTx Cost Comparison

27

651

327

233

143

1,121

1,798

2,593

1,798

1,776

AE FTTN +VDSL2

ActiveEthernetFTTP

WDM-PON,CO Split*

GPON,CO Split

GPON,Field Split

9.87

18.20

20.40

15.47

14.34

CO OSP

Capex per Subscriber, $ Opex per Subscriber-Month, $

1,150

2,450

2,920

2,030

1,920

Total:

Depreciation

Total:

CO OpsOSP Maint.

*Rough estimates!Sources: Various industry/customer benchmarks; Zhone analysis


FTTx Costs vs. Data Rate

AE FTTN +VDSL2

ActiveEthernetFTTP

WDM-PON,CO Split*

GPON,CO Split

GPON,Field Split

Capex per Subscriber, $/Mbps Opex per Subscriber-Month, $/Mbps

*Rough estimates!Sources: Various industry/customer benchmarks; Zhone analysis

14

2

9

26

25

0.12

0.02

0.07

0.20

0.18


GPON Benefits

Network services Aggregation Last mile

Class 5

Softswitch

PSTN

RF video headend

1 – 10 GbRing

GPON fiber

Copper DSL

Copper POTS

Residential: SFR, MDU, SMB

POTS

VoIP

RF broadcast video

IP HDTV on demand

Web


IPTV Networ

k

Cellular Networ

k

Subscriber premises

EDFA

• RF Overlay

• Residential MDU

• Dense Urban Distribution

• Predictable BW Requirements

• Natural Option for Planned Growth

Internet

Router


P2P Benefits

• Residential Overbuilds and Business Ethernet

• Media Distribution for MDU/MTU

• Slow or Incremental Growth Rates

• Unpredictable BW Requirements

• Natural Option for Unexpected Growth

Bandwidth

• From 1M to 1000Mbps

• Granular BW Management

• Complements GPON for ‘Super Users’

Network Location

• CO/POP

• OSP Terminals

• Equipment Closets

• Pole/Pedestal

• Customer Premise

Applications

• IPTV

• MEF Services

• VoIP, POTS

• Media Conversion

• TLS / VPNs

• Extended Reach


Simplified Service Management

Class 5

Softswitch

Internet

PSTN

RF video headend

Media gateway

Video networ

k

Cellular networ

k

Network services Aggregation Last mile Subscriber premises

Media Independence

N:1 Service Model


RT Home / BusinessWAN / Metro / CO

FTTN

FTTP

n x 10Gb

Backhaul

Curb

MSAP

MSAP

Complementary Deployment Options

P2P Ethernet

GPON


Agenda

• Market Trends




• Conclusions

• Q&A


Zhone Access Solutions

• Industry’s broadest portfolio of truly

integrated multi-service access

solutions

– All current access technologies

– Copper, fiber, or both

– Extensive legacy interface support

– Scalable to 10G

– One software architecture,

one EMS, one OSS interface

– Sophisticated access service

enablement features

(e.g., QoS, IP SLA, rate shaping,

IGMP snooping)

– Higher versatility, flexibility, efficiency

• 600+ service providers worldwide


Zhone Complete FTTx Solutions

• zNID Intelligent FTTH Gateway for GPON or AE

– Radically simplified provisioning and management

– Advanced QoS — The only gateway to deliver Layer 3 intelligence

– Remote Management — DSL Forum Standard TR-069 server, OMCI,

SNMP or HTTP

– Resilient thermal enclosure — add electronics on service demand

– No new wiring HPNAv3 over coax and phone lines

– Integrated power source via home’s phone line

– Premium voice, video, data

– Complemented by indoor unit options

• MALC Integrated Multi-Service GPON and AE Platform

– Smooth migration, low-cost entry for MSAP-architecture networks

– Line card upgrades — rapid deployment for first-to-market services

– Integrated system approach, streamlines inventories and operations

• Bitstorm VDSL2 for FTTN

– 100 Mbps symmetric performance

– Cost-effective, temperature-hardened 1U form factor for remote installation


Occam High Definition AccessTM

Powerful Access ConvergenceNetwork services Aggregation Last mile

Class 5

Softswitch

Internet

PSTN

RF video headend

Media gateway

1Gbring

10Gbring GPON fiber

Copper DSL

Copper POTS

Business / government:SMB, MTU, large enterprise

Residential: SFR, MDU

POTS

VoIP

RF broadcast video

IP HDTV on demand

Web


Video networ

k DS0 voice

VoIPVideo conferencing

10/100

GigE

Travel

Cellular networ

k

Subscriber premises

1G Pt-Pt fiber

EDFA


• Residential and Business service convergence over

comprehensive Carrier Ethernet access solutions

– Complementary P2P and GPON FTTx Solutions

– Common service management models

• Unmatched flexibility in simple, cost competitive

platforms that scale from 64kbps to 10GigE

• Leverage Ethernet over Any Media to deliver Any

Service Anywhere

• Standards Simplified….

– MEF defined E-LINE and E-LAN services

– DSL Forum and Broadband Suite defined residential services

Occam Networks

Simplifying FTTx Access


Agenda

• Market Trends




• Conclusions

• Q&A


The Right FTTP Choice

Attribute P2P GPON Notes

Bandwidth 75-150M* P2P most future proof

Deployment Flexibility P2P scales low to high

RF Overlay PON best for existing RF

OAM & Maturity 802.3ah widely used

OSP Simplicity P2P = 1 to 1

Feeder Relief PON minimizes feeder

Urban Residential PON built for density

Rural & Business P2P allows for precision

Economic Cents PON saves CAPEX

Power and Management PON minimizes fiber mgmt


The Right Wireline Access

• It all depends...

– Investment time horizon

– Service definition

– Customer segment needs

– Asset initial conditions

• Choosing

– Equipment flexibility, versatility for network evolution

and heterogeneity

– Do the math, with some good help

GPON AE FTTP

AE FTTN

+ VDSL2

ADSL2+

Bonding

Medium Long Medium Short

Tomorrow Long-term Tomorrow Today

Residential Res + Biz Residential Res + Biz

None None Plentiful Cu Plentiful Cu


Q&A

Jeff Heynen

Directing Analyst, IPTV and

Next Gen OSS/BSS

Juan J. Vela

Director, Solutions Marketing

and Strategy

Steven Glapa

VP of Marketing and

Product Management

PON and Ethernet in FTTH Networks: Incompatible or...

Documents

Transcript of PON and Ethernet in FTTH Networks: Incompatible or...