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PRESENTATION SUCCESSFUL IMPLEMENTED CASES AND FUTURE OUTLOOK Florian Damas, Director Public Affairs 9 December 2014
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ULTRA-BROADBAND – THE NEW UNIVERSAL INFRASTRUCTURE ENABLING FUNDAMENTAL CHANGE ACROSS SECTORS
HEALTHCARE DEFENSE TRANSPORTATION ENERGY SMART COMMUNITIES
HOSPITALITY & TOURISM
STADIUM & ARENA FINANCE EDUCATION INDUSTRY
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FIRST SET OF CHALLENGES: POPULATION DENSITY & ECONOMIC ACTIVITY
Source: Economist.com, March 4th 2013 Source: Foreign Policy, March 28th 2014
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SECOND SET OF CHALLENGES: NETWORK RESOURCES & INVESTMENT CAPACITY
Match network resources (capacity, QoS/QoE, security, associated SLAs…) with rapid increase of devices, traffic, services
• Video and WiFi drive fixed broadband consumption + Video shifting from multicast to unicast
• Mobile requires fixed backhaul and access
• Data centers and content delivery networks are positioned closer to users
• Development of essential services: teleworking, eHealth, eGovt, smart cities, smart metering, home automation
Network investment capacity is different in Europe compare to US
• Bigger addressable market BUT
• Over 140 European operators with a lower level of investment (~10% turnover) compare to 4 operators in US (~15% turnover)
• Almost exclusive power of American actors in the digital field (GAFA…) driving uptake of platforms and services
• Will European ISPs/Telcos be the only resellers of network access and access seekers in the future?
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NEW TELECOM NETWORK STRUCTURE
Retail Services (residential, public & business)
Active Infrastructure (network equipments, business & operation support)
Passive Infrastructure
End-users
Ethernet layer-2 IP layer-3
Ducts, sewers, poles Dark fibre Wavelength Passive wholesale
Active wholesale
- Wavelength (by pair) - Dark fibre - Ducts/sewers
- IPstream (IP L3) - Bitstream (Ethernet L2)
>200 B€
Investment needed Payback
Few m-3 y
5-7 y
10-15 y
20%
80%
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0 ITU-T, fixed BB subs per 100 inhabitants 40
THE ULTRA- BROADBAND CHALLENGE
CONNECTING AMERICA 100Mbps to 100M households by 2020
EU DIGITAL AGENDA 30Mbps to all,
100Mbps to 50% by 2020
BRASIL PLANO NACIONAL 160M broadband connections by 2018
INDIA NATIONAL BB PLAN 2-100Mbps for 600M households by 2020
BB CHINA STRATEGIC PLAN 50Mbps-1Gbps to all urban and 12Mbps to all rural by 2020
NEW ZEALAND UFB/RBI Ultra-fast (50-100Mbps) BB to 75% by 2019, BB for 86% of rural
AUSTRALIA NBN Ultra-fast broadband (25-100 Mbps) to all households by 2019
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AT CURRENT SPEED, DEPLOYMENTS WILL TAKE DECADES TO COMPLETE
85 years
APAC
92 years
Western Europe
77 years
NAR
Source: Infonetics Research, FTTH Council
GIGABIT INITIATIVES ARE NEEDED TO MEET THE NATIONAL TARGETS AND CONSUMERS’ NEEDS
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END USERS WILL NOT WAIT
Video-surveillance
Speed
test
Internet of things
Smart
homes
Multi-media
Wi-fi devices
Video
Gaming
CONSUMERS WANT UBB SERVICES TODAY
SPEED IS THE KEY SELLING POINT
THEY ARE WILLING TO PAY FOR IT
>100 $/month
>80 $/month
Over 1,100 communities applied to be recipient for
Google services
Source: IDATE, 2014
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ENTHUSIASM FOR COMMUNITY ULTRA-BROADBAND
Profile:
A construction company building gigabit fiber communities in The Netherlands
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ULTRA-BROADBAND DRIVES ECONOMIC DEVELOPMENT
PRINCETON, IL LAFAYETTE, LA
Due to the lack of broadband services, the largest employer left town, taking 450 jobs
Availability of fiber broadband attracted new businesses and created 1000 jobs
62% ATTRIBUTE INCREASED PRODUCTIVITY
TO BROADBAND
80% BELIEVE NOT HAVING BROADBAND WOULD NEGATIVELY IMPACT THEIR
BUSINESS
18% BELIEVE THEY COULD NOT OPERATE
WITHOUT BROADBAND
Michigan IT Department survey shows:
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FIBER-TO-THE-HOME POWERS GIGABIT COMMUNITIES
$
¥
FUTURE-PROOF TECHNOLOGY 1Gbps today, 10Gbps and more tomorrow
using the same fiber network
ECO-FRIENDLY Lowest power consumption per megabit per second
COST-EFFECTIVE High density, long reach, low OPEX,
Residential/business/backhaul, smooth migration path to next gen
COMPETITIVE ADVANTAGE Unbeatable 1G service offer, premium customer experience, marketing & branding
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FIBER TECHNOLOGIES OVERVIEW
PON
ACTIVE ETHERNET
ETHERNET P2P
EPON 1 1 Passive Being replaced by GPON/10G EPON
GPON 1.2 2.5 Passive Most widely used FTTH technology
10G EPON 1/10 10 Passive Mainly for business services
10G GPON 2.5 10 Passive No market traction
TWDM 40 40 Passive Next step for GPON
WDM 1 1 Passive Niche segment: business and MBH
TECHNOLOGY FLAVOR US Gb/s
DS Gb/s
OSP COST DEPLOYMENT
FE 0.1 0.1 Passive Being replaced by GE
GE 1 1 Passive Mainly for businesses
10 GE 10 10 Passive Next step for GE
FE 0.1 0.1 Active Being replaced by GE
GE 1 1 Active High OPEX
10 GE 10 10 Active Next step for GE
PON OLT Optical splitter
Ethernet
Switch
Ethernet
Switch
Ethernet
Switch
FCP
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DARK FIBRE WHOLESALE FIBRE CONCENTRATION POINT
Multiple fibres in the last mile
Operator #1 (GPON)
Operator #2 (GPON)
Operator #3 (P2P) Note: P2P operators may decide to position their access equipments in the street cabinet (Active Ethernet) or in the central office. First option limits the number of fibres in the feeder segment
One fibre in the last mile
Operator #1 (GPON)
Operator #2 (GPON)
Operator #3 (P2P)
Terminating segment Feeder segment Street cabinet or building basement CO
From 1 to 40 km
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SOLVING THE GIGABIT EQUATION UNDERSTANDING THE DEMANDS FOR BUILDING STATE-OF-THE-ART NETWORK
IP/MPLS
Internet, PSTN, TV head-end, cloud
NOC
CONSUMPTION TRENDS • Real time entertainment, more unicast traffic • Many WiFi devices are connected to fixed
lines • More devices and services add complexity to
use, maintain and upgrade home network
ACCESS NODE REQUIREMENTS • High capacity to provide all services to all
Gigabit users and user segments
NETWORK INTERFACE Overall aggregated traffic will increase 5x by 2018. Non blocking network interface is needed to handle the growth
1Gbps
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FIELD PROVEN GIGABIT SOLUTION
HIGHEST SWITCHING AND BACKPLANE CAPACITY
HIGHEST UPLINK CAPACITY ON MARKET – 160Gbps
ALL FIBER TECHNOLOGIES
REDUNDANCY AND RESILIENCE
7360 ISAM FX
CHASSIS TECHNOLOGY CAPACITY SCALABILITY
PtP 2x 480 Gb/s switching matrix
• >8000 users served from a single chassis • All services and all user types converged on a single platform
16-slot 8-slot 4-slot EPON, GPON 2 x 100Gb/s to every slot
10G EPON, NGPON
10 Tb/s total system capacity
KEY FEATURES FX-16
FX-8
FX-4
1G
NEW
16
CONNECT ANY SUBSCRIBER 7368 ISAM ONT EXAMPLES
7360 ISAM FX
OLT
BUSINESS/BACKHAUL
RESIDENTIAL
MULTI-DWELING
Outdoor
8 POTS and 8 GigE
G-881G
G-881G
Indoor
8 POTS and 8 GigE
Data
1 GigE
G-010G
Business
4 GigE & 4DS1
B-0404G
SFP GigE rates
Universal Enclosure
I-241W
Integrated Residential Gateway
G-240/440G
Indoor Outdoor
Data
4 GigE
I-040G
True Gigabit performance 1G
RF or IPTV
Any location, any application
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EXTEND SERVICE OFFERING OVER EXISTING NETWORKS TO ACCELEARTE ROI
BUSINESS SERVICES
Business and SFP ONT
End-to-end performance
P2P, PON,
Any-to-any redundancy
MEF certification
MPLS
PORTFOLIO AND SERVICES
Account for big part of total FTTB/H revenues:
30% in 2014
ALCATEL-LUCENT HAS PORTFOLIO AND FEATURES FOR FASTER NETWORK MONETIZATION
Average spend per business user/month:
5x residential
SMALL CELL MOBILE BACKHAUL
Fiber MBH has
2-3 x less OPEX per month than other
technologies
Leased MBH revenues in
2013:
2B $
Backhaul over ubiquitously available fixed residential network
CHOSING THE RIGHT REGULATORY FRAMEWORK IS KEY
“INFRASTRUCTURE-BASED” AND “SERVICE-BASED” COMPETITION
Network Operator
Infrastructure Owner
Full separation Vertically Integrated
Service
Active
Passive
Retail Service Provider
Retail Service Provider
Retail Service Provider
Infrastructure Owner
Passive Sharing
Active/Passive Sharing
Retail Service Provider
Retail Service Provider
Retail Service Provider
Vertical Infrastructure
Provider
Vertically Integrated O
perator
Vertically Integrated O
perator
Vertically Integrated O
perator
Vertical Service Provider
Vertical Service Provider
Vertical Service Provider
Competition Infrastructure Competition Service Competition
Regulated passive wholesale
Regulated active wholesale
Regulated passive & active wholesale
Access to public infrastructure
Regulation
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COPYRIGHT © 2014 ALCATEL-LUCENT. ALL RIGHTS RESERVED. 19 | Open Networks for Industry & Public Sector | Florian DAMAS | September 2008
OPEN NETWORK STRUCTURE, ROLES AND RESPONSIBILITIES
- Designs and builds the network
- Manages site & civil engineering work
- Owns the fibre infrastructure
Infrastructure owner
Network operator
End user
Rights of way
Rights to operate the network
Rights to offer services on Network Operator
portal
§ Owns the network (edge/core/access) equipments up to the customer premises
§ Operates the network
§ Manages the delivery of the services on behalf of the retail service providers
§ Provides connectivity to end-users & retail service providers
§ Provides end-user portals for service subscription (self-registration & auto-provisioning)
§ Interconnects the network to the Internet backbone and to other telco networks
§ Owns the service and the application servers
§ Operates the service
Provides end-user support for delivered service
Provides customer support for service delivery, connectivity and network issues
Provides customer support for fibre
Retail Service Provider
20 | FTTH Council – PPP and Regulation | February 2009
THE C4 ENERGY CASE
Kristianstad Municipality
C4 Elnät AB Owns
Passive Infrastructure (trenches, ducts, fibre)
Retail Services (residential, public & business)
Active Network (network equipments,
business & operation support)
End-users
Construction companies
Network Operator
Retail service providers
Tender
Owns
Build
Owns
Operates
Fees
C4 Energi AB
100%
Internet Telephony TV
Kristianstad in Sweden: 33 000 people (city) 76 000 people (area)
Objective: 10 000 subs (connected)
Tender & concession contract
Provides
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21 | FTTH Council – PPP and Regulation | February 2009
THE EWZ CASE IN ZURICH
City of Zurich
ewz Telecom
Passive Infrastructure (trenches, ducts, fibre)
Retail Services (residential, public & business)
Active Network (network equipments,
business & operation support)
End-users
Construction companies
ewz.zürinet
Retail service providers
Tender
Owns
Build
Owns
Operates
ewz
100%
Retail Business & Residential Service providers ewz Wholesale SP
ewz.optical line
ewz.fiber
Note: ewz works with the Zurich real-estate organizations to deploy fibre [the homeowners association Zurich (HEV), the Swiss Association for Housing (SVW, Section Zurich), the Swiss Association of Real Estate Management (SVIT) and the Association of Zurich real estate companies (VZI)]
Provides
22 | FTTH Council – PPP and Regulation | February 2009
THE " FLUGFELD BÖBLINGEN/STUTTGART " URBAN AREA CASE
+
Passive Infrastructure (trenches, ducts, fibre)
Retail Services (residential, public & business)
Active Network (network equipments,
business & operation support)
End-users
Construction companies
Network Operator
Retail service providers
Tender
Own
Build
Owns
Operates
Fees
Stadtwerke Sindelfingen and Stadtwerke Boeblingen offer triple play services to the 7,500 inhabitants of the new 80 ha "Flugfeld Böblingen/Stuttgart" urban development area. The two utility companies are jointly developing and marketing the "Flugfeld" area.
Tender & concession contract
Provides
Retail Service providers VSE NET Wholesale SP
53%
100%
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“Economic development and growth for our customers across the country is the goal of this project…Alcatel-Lucent’s recognized expertise in fiber provides us with efficient access solutions to enhance customer service levels in regional communities”
Jacques Beauvoine, Chairman Axione. January 7, 2009
AXIONE OPERATOR, FRANCE (FILIAL OF BOUYGUES CONSTRUCTION)
Challenge
§ Goal of economic development and growth for customers across the country § Need to enhance customer service levels in regional communities
Solution
§ ISAM GPON + IP/MPLS
Benefits
§ Ability to provide business customers with high-quality access to voice, video and data services § Successfully address future network requirements § Improved Axione operations and ability to meet growing business needs
Axione is committed to bridging the digital divide and boosting economic and social development in regional communities
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EPB CHATTANOOGA UTILITY, US
Challenge
§ Revenue opportunity for a utility company § Become a viable competitor in the telecommunications market
Solution
§ ISAM GPON + other Triple Play Elements
Benefits
§ Offer advanced TV services, and HD content § Enhanced user experience and user centric features § Revenue for EPB
The fastest city in the world – 1Gb/s residential service for all
“FTTH will provide Chattanooga with the tools, resources and technology it needs to become a leading competitor in today’s marketplace. Using the giver optic network we’re putting in place for our new Smart Grid allows us to also offer the most advanced communications services, like high speed internet, video entertainment, and digital phone to our community.”
Harold DePriest, President and CEO of EPB. September 24, 2008
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Chattanooga’s 100% Fiber Optic Network
The fastest city in the world
Deployed by EPB utility for introducing Smart Grid
Upgrade of electric distribution network together with fiber optics roll-out
100% fiber coverage
1Gb/s bandwidth offering
Take-rate: 15% only 2 months after launch!
EPB CHATTANOOGA UTILITY, US
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-‐
100,000
200,000
300,000
400,000
500,000
600,000
kW
Hour
EPB Residential August 2009 Hourly Load
Service Availability
Reduce outage time by up to 40%
Sustainability
Reduce usage peak by 100MW -‐
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
kW
Hour
EPB Residential July 22, 2009 Hourly Load
Economic Growth
Attract businesses and create new jobs
Service Attractiveness
More options for next generation communication services
EPB CHATTANOOGA UTILITY, US
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NATIONAL BROADBAND PLANS & ASSOCIATED MODELS
GOVERNMENT CONTROLLED INFRASTRUCTURE
INCUMBENT SPONSORED WITH GOV FUNDING
PRIVATE LED WITH GOV SUPPORT
PRIVATE INVESTMENT –HEAVY REGULATION
PRIVATE INVESTMENT-LIGHT REGULATION
PUBL
IC I
NTE
RVEN
TIO
N
Adapted -ADL Analysis
1
2
3
4
5 AUSTRALIA
JAPAN, LATVIA, LITHUANIA, SOUTH KOREA, MALAYSIA, INDONESIA
SINGAPORE, FRANCE, RWANDA,NEW ZEALAND, POLAND, MEXICO, THAILAND , BRAZIL, PERU, COLUMBIA
GERMANY, NETHERLANDS, UK
US, UAE, HONK KONG
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• The National Broadband Network (NBN) is Australia's first national wholesale-only, open access communications network that is being built to bring high speed broadband and telephone services within the reach of all Australian premises.
• The NBN utilises three technologies; fibre, fixed wireless and satellite.
• FTTH to 93% of population (9M HH), BB wireless to 7% in 8 years.
• NBN assets: passives, access nodes, Ethernet aggregation.
• Several bitstream delivery points.
• Architecture: mainly FTTH, some FTTB.
• Initial plan is for every home, school and workplace in the country to have access to the NBN.
AUSTRALIA NBNCO NATIONAL BACKBONE: THE PRE-
REQUISITE TO SUCCESS
• Regional Backbone Blackspots program
• Six priority locations were identified following a public consultation process and selected based on a number of factors including:
• the extent to which the location is served by competitive optical fibre links
• the potential population that can benefit from the infrastructure
• the presence of social infrastructure, industry and the level of economic activity in the location the interest in the market to engage in the competitive assessment process, and
• the likelihood of the deployment in the absence of Government funding.
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THE RESTRUCTURING HOA
• Telstra/NBN Co Heads of Agreement signed on 20 June 2010.
• Regulatory certainty for Telstra part of the deal = this was not a pure Telstra/NBN Co discussion
• $9bn NBN deal is over 30 years, covering infrastructure rental, and compensation for migrating customers
• Successful implementation of a deal shaped by the HoA dramatically changed Telstra’s structure, markets and (to some extent) investment strategies
• From Telstra’s side, was subject to shareholder agreement
CHANGE IN TECHNOLOGY MIX
• NBN announced in Q2 2014 an agreement with Telstra to deploy VDSL/Vectoring from the cabinet to speed up roll-outs
Active Sharing
Retail Service Provider
Retail Service Provider
Retail Service Provider
Service
Active
Passive
Regulation Regulated active wholesale
NBNco: Vertical
Infrastructure Provider
AUSTRALIA NBNCo
Government Controlled Infrastructure
5
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MEXICAN OPEN WIRELSS ACCESS INITIATIVE
• The underlying driver: Grow the Economy • Macro-economic indicators are excellent • With growth as absolute priority, the Mexican reform encompasses : education, transport, energy … • For Telecoms, this has been translated to give access to affordable Telecom services to all.
• The way to do it • Aim: bring mobile Broadband price as close as possible as Mobile Voice price • How: Reduce the network TCO by 20 times: • Allocate Digital Dividend • Generalize a wholesale model • Use PPP model and push other public supply side initiatives
• Project’s details • All 700 MHz will be allocated to one wholesaler with stringent coverage obligations • A lean, flat IP, low cost wireless bit stream factory will be built on top • A non discriminatory wholesaler who cannot commercialize in the retail market • Paradigm shift from infra based competition to service-based competition
98% coverage
Private led with Government support 3
Active Sharing
Retail Service Provider
Retail Service Provider
Retail Service Provider
Service
Active
Passive
Regulation Regulated
active wholesale
MEXICAN DD LTE
WHOLESALER
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NEW ZEALAND ULTRA FAST BROADBAND & RURAL BROADBAND INITIATIVE • The government’s ultra-fast broadband (UFB) initiative has been an important
industry talking point since the November 2008 election. Key facts:
- Government has committed to invest up to $1.35billion
- Objective is to accelerate the roll-out of UFB to 75 percent of New Zealanders over 10-years
- In the first six years, will concentrate on ‘priority broadband users’ such as businesses, health service providers and schools.
- UFB is defined as a fibre-to-the-premise broadband service providing downlink speeds of at least 100 Mbps and uplink speeds of at least 50 Mbps.
• The government’s complementary program for rural communities is called the Rural Broadband Initiative (RBI).
Key facts:
- Goal to deliver high speed broadband to the remaining 25 percent of the population
- Within six years, 93 percent of rural schools will receive fibre, enabling speeds of at least 100Mbps, with the remaining seven percent to achieve speeds of at least 10Mbps
- Over 80 percent of rural households will have access to broadband with speeds of at least 5Mbps, with the remainder to achieve speeds of at least 1Mbps.
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NEW ZEALAND STRUCTURAL SEPARATION - TELECOM
• Any company partnering with the government to provide wholesale ultra-fast broadband is not allowed to provide retail telecommunications services.
• Telecom was a vertically integrated company, but operationally separated into three business units: the network business (Chorus) , the wholesale business (Telecom Wholesale) and the retail business (Telecom Retail)
• So it can be a partner in the ultra-fast broadband initiative, it has proposed to split and become two totally separate companies “Telecom2” and “Chorus2”.
• What does structural separation mean?
• Telecom split into two companies.
- Chorus2 undertakes network and wholesale business. Chorus2 will be responsible for both the copper and fibre network.
- Telecom2 undertakes retail functions and operate Telecom’s mobile networks.
• Chorus2 and Telecom2 have separate functions, staff and boards. They will have separate shares and are separately listed.
Active/Passive Sharing TELCO
M2
Retail
CHORUS2 (Fiber & Copper Network)
Wholesale Business
Private led with Government support 3
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SINGAPORE NEXT GEN NBN
Singtel Passive Infrastructure (trenches, ducts, fibre)
Retail Services (residential, public & business)
Active Network (network equipments, business & operation support)
End-users
OpenNet
Owns, Builds & Operates
15 %
• The Next Gen NBN aims to provide a nationwide
ultra-high speed broadband access of 1Gbps and more, to all physical addresses including homes, schools, government buildings, businesses, hospitals and NBAPs (Non Building Access Points).
• Retail Service Providers (RSPs) offer services over the Next Gen NBN to businesses and consumers. The effective open access industry structure which IDA has implemented for the Next Gen NBN allows RSPs to purchase bandwidth connectivity at non-discriminatory and non-exclusive prices, and compete on a level playing field to provide competitive and innovative services to end-users.
• Examples of consumer services that have been deployed by RSPs over the Next Gen NBN include Interactive Internet Protocol TV, High-Speed Online Gaming, Online Education and Home-Based Work.
• For businesses, some Next Gen services that have been rolled out include Cloud Computing, High-Quality Video Conferencing, Digital Signages, Multimedia Kiosks and Remote Offices.
NetCo deployment milestones - 31 Dec 2010: 60% - 30 Jun 2012: 95% - Jan 2013: 100% (Universal Service Obligation) OpCo targets by 2015: - 330K residential subs (30% of total households) - 80K business subs
30 %
Provides
Designs, Builds & Operates
Axia NetMedia
Singapore Press Holdings (SPH)
SP Telecom. (SPT)
30 %
25 %
Retail Service Providers
Nucleus Connect
Owns
StarHub Owns
Fees
Fees
(Note 1)
Note 1: AssetCo owned by a registered business trust or similar structure approved by IDA; Singtel to reduce unit holding in AssetCo to 25% within 60 months
Note 2: Singtel to transfer relevant existing assets to AssetCo within 24 months
Structural Separation
Operational Separation
Pay service charges
AssetCo Owns
(Note 2)
OpCo
NetCo
Subsidy up to SG$ 250M
Subsidy up to SG$ 750M
Private led with Government support
3
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ORANGE POLAND (TPSA) REGIONAL PPP • Government procurements • TP signed a co-operation agreement with Hawe SA and
Alcatel-Lucent to develop broadband infrastructure in Poland, which is now an SPV approved by EU • Set out a market solution • Propose consortium structure that meets
stakeholder interests • Building the consortium business case
• Core: passive WDM
• Distribution: active IP/MPLS
• Access: tbd by local telco service providers
HAWE
TP Teltech
RESIDENTS BUSINESS
SERVICE PROVIDERS
SPV/NEWCO
Government
GOVERNMENT
Remarks: CAPEX structure - 15% active network (nodes and PM) - 85% passive network (ducts and fibre)
Alcatel-Lucent
Asset contribution Start equity Flow of equity over time
Private led with Government support 3
Active/Passive Sharing
Retail Service Provider
Retail Service Provider
Retail Service Provider
Vertical Infrastructure
Provider
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TWDM-PON OPPORTUNITIES
• Single fibre outside plant for multiple addressable markets (fixed broadband, mobile backhaul, smart cities…) and customers (residential, business, public administration…)
• New ladder of investment
• Technology agnostic
• Service-neutral co-location facilities
• Lead to a nationwide open access passive fibre plant via wavelength allocation
• New financing & revenue models
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WAVELENGTH WHOLESALE TWDM-PON
TWDM PON
SMALL CELLS BACKHAUL
RESIDENTIAL FTTH
MICRONODES BACKHAUL
BUSINESS USERS
GPON
10G/2.5G
10/2.5G 10G/10G 2.5G/1.2G
2.5G/2.5G
Operat
or 4
Operator
2&3
Operat
or 1
TWDM PON
Wavelength unbundling per addressable market Wavelength unbundling per operator
15/12/14
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ACTIVE WHOLESALE BITSTREAM AND IPSTREAM
Local Exchange
Customer Premises
Metro POP
Regional POP
National POP
Access Seeker
Cabinet
R Supports any service, incl. SLAs
R Contention happens (Access Provider + Access Seeker networks), Access Seeker buys committed and excess capacity per user
R Improved scalability in terms of interconnections
Access Seeker
Local Exchange
Customer Premises
Metro POP
Regional POP
National POP
Cabinet
R Supports any service, incl. SLAs (note; no L2 transparency)
R Contention happens (Access Provider + Access Seeker networks), Access Seeker buys committed and excess capacity per user
R scalability in terms of interconnections
R Flexibility for Access Seeker (no need to perform IP configuration)
L2 equipment L3 equipment (Router)
L2 Bitstream (generic case)
L3 IPstream
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NEW LADDER OF INVESTMENT FOR ANY SERVICE PROVIDER
• Market should be open to any service provider (and not only Telcos) to give equal opportunity to deliver services directly to users
• Beneficial to increasing up-take and fostering digital service competition
• Outpace the net neutrality debate
• Each access network should be backhauled to regional IXPs
IPstream
Bitstream
Wavelength
Investment
Time
National
Regional
Metropolitan
Local central office
National
Regional
Metropolitan
Local central office
Metropolitan
Local central office
15/12/14
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COPYRIGHT © 2014 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
REUSABILITY OF COPPER ASSETS
• FTTdp (Fibre to the distribution point) ensures the transition between fibre to copper for the last 10s or 100s meters: manholes, poles, curb, building basement or front door
• Objective: reduce time-to-market and costs
• New technologies such as G.Fast and XG-Fast require FTTH active equipments and can be compatible with passive and active wholesale
• Upload and download speeds are configurable
Technology Frequency Maximum aggregate speed Maximum distance
G.Fast phase 1* 106 MHz 700 Mbps 100 meters
G.Fast phase 2* 212 MHz 1.25 Gbps 70 meters
Bell Labs XG-FAST** 350 MHz 2 Gbps (1 Gbps symmetrical) 70 meters
Bell Labs XG-FAST with bonding***
500 MHz 10 Gbps (two pairs) 30 meters
* Industry standard specifications. G.fast allows for upload and download speeds to be configured by the operator.
** In a laboratory, reproducing real-world conditions of distance and copper quality.
*** Laboratory conditions.
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FIBRE’S CHANGING ROLE
• New access networks roll-out is not an evolution but more the building of a new essential infrastructure for the 40 years to come. On 70% of the EU territory, a single infrastructure is viable.
• Need for more fibre, as deep as economically viable, which has all the characteristics of an essential infrastructure
• One fibre outside plant supports both passive and active wholesale
• TWDM-PON increases addressable markets and revenue forecasts
• TWDM-PON ensures further competition among ISPs and service providers
• Complimentary G.Fast and XG-Fast technologies for copper asset reusability in the last meters without being detrimental to performance and speed of fibre
15/12/14
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Florian Damas
Public Affairs Director
+32 477 96 05 44
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