Download - Takashi uematsu

NTT’s Initiatives for FTTHand Next-Generation Services

February 15, 2012

Takashi Uematsu

Next Generation Network Office, Technology Planning Dpt.

Nippon Telegraph and Telephone Corporation

1Copyright (c) 2012 Nippon Telegraph and Telephone Corporation

NTT OverviewNTT Overview

Broadband Market in JapanBroadband Market in Japan

NTT's Efforts towards FTTH Penetration NTT's Efforts towards FTTH Penetration

Presentation OutlinePresentation Outline


NTT OverviewNTT Overview

Broadband Market in Japan

NTT's Efforts towards FTTH Penetration


Corporate OverviewCorporate Overview

NTT East NTT WestNTT

Communications

Long Distanceand

International Communications

Business

100％％％％ 100％％％％ 100％％％％

Regional

Communications

Business

NTT DATA

Data

Communi-

cations

Business

54.2％％％％

Other

group

companies

Real estate,

finance,

construction,

power

and other

NTT

DOCOMO

Mobile

Communi-

cations

Business

63.3％％％％

* Percentage figures show the percentage of voting rights

(Mar. 2010)

Holding CompanyR&D

Dimension

Data

Global

IT Services

&

Solutions

Name Nippon Telegraph and Telephone CorporationDate of Establishment April 1, 1985 (In accordance with the NTT Law)

Head Office Tokyo, JapanConsolidated Subsidiaries 756 companiesOperating Revenues ¥ 10,305 billion*Employees 219,350*

NameName Nippon Telegraph and Telephone CorporationNippon Telegraph and Telephone CorporationDate of EstablishmentDate of Establishment April 1, 1985April 1, 1985 (In accordance with the NTT Law)(In accordance with the NTT Law)

Head OfficeHead Office Tokyo, JapanTokyo, JapanConsolidated SubsidiariesConsolidated Subsidiaries 756 companies756 companiesOperating RevenuesOperating Revenues ¥¥ 10,305 billion*10,305 billion*EmployeesEmployees 219,350*219,350*

100％％％％

(as of September 30, 2011)

* consolidated basis

……


NTTNTT’’s Presence in Deutschlands Presence in Deutschland

•• DDüüsseldorfsseldorf

•• FrankfurtFrankfurt

NTT Europe Ltd.NTT Europe Ltd.Provides communications servicesProvides communications services

IntegralisIntegralisProvides IT security solutionsProvides IT security solutions

Dimension DataDimension DataProvides IT solution servicesProvides IT solution services

•• MMüünchennchen•• IsmaningIsmaning

DocomoDocomo EuroEuro--LabsLabsResearch on mobile communications technologiesResearch on mobile communications technologies

NTTNTT CorporationCorporationR&D Liaison OfficeR&D Liaison Office

itelligenceitelligenceProvides SAP solutionsProvides SAP solutions

cirquentcirquentProvides IT solutionsProvides IT solutions


NTT Overview

Broadband Market in JapanBroadband Market in Japan

NTT's Efforts towards FTTH Penetration


0

5

1 0

1 5

2 0

2 5

3 0

3 5

Source: Ministry of Internal Affairs and Communications

Trend of FixedTrend of Fixed--line Broadband Market in Japan line Broadband Market in Japan

<as of September 30, 2011>

Cable: 5.8M subs(17%)Cable: 5.8M subs(17%)

DSL: 7.4M subs(21%)of which NTT: 2.6M

DSL: 7.4M subs(21%)of which NTT: 2.6M

Japan’s fixed-line broadband market is continuously expanding

by the rapid growth of FTTH services (DSL peaked in 2005-2006).

Japan’s fixed-line broadband market is continuously expanding

by the rapid growth of FTTH services (DSL peaked in 2005-2006).

Total Households in Japan: 52 million(calendar year)

Total: 34.6M subs

of which NTT: 18.5M (53.5%)

FTTH: 21.4M subs(62%)of which NTT: 16.0M

FTTH: 21.4M subs(62%)of which NTT: 16.0M

Million subscribers

FTTH

Cable

DSL

2003 2004 2005 2006 20072002 2008 2009 2010 2011

(Includes FTTB/FTTP)(Includes FTTB/FTTP)


0

20

40

60

80

100

120

140

MobileMobile--phone Market Trend in Japanphone Market Trend in Japan

3G/3.9G(W-CDMA/CDMA2000/LTE)

3G/3.9G(W-CDMA/CDMA2000/LTE)

2G/2.5G(PDC/cdmaOne/CDMA 1x)

Total Population in Japan: 128 million<as of September 30, 2011>

� Japan’s mobile-phone market is steadily growing.

� 96% of the mobile-phones are 3G/3.9G terminals.(NTT’s 2G mobile service is going to be terminated at the end of March 2012.)

� Japan’s mobile-phone market is steadily growing.

� 96% of the mobile-phones are 3G/3.9G terminals.(NTT’s 2G mobile service is going to be terminated at the end of March 2012.)

Million subscribers

2003 2004 2005 2006 20072002 2008 2009 2010

Source: Telecommunications Carriers Association

3G/3.9G:

122.3M subs (96%)(3.9G: 388,600 subs)

of which NTT: 58.3M (share 48%)

3G/3.9G:

122.3M subs (96%)(3.9G: 388,600 subs)

of which NTT: 58.3M (share 48%)

2G/2.5G: 0.8M subs (1%)of which NTT: 0.7M (share 88%)

2G/2.5G: 0.8M subs (1%)of which NTT: 0.7M (share 88%)

Total: 127.3M subs

of which NTT: 58.3M

(share 46%)

(calendar year)

PHS: 4.2M subs (3%)PHS: 4.2M subs (3%)PHS (digital cordless-phone)

2011


NTT Overview

Broadband Market in Japan

NTT's Efforts towards FTTH PenetrationNTT's Efforts towards FTTH Penetration


For detachedhouses

For MDUs(apartments)

Source: NTT East - Corporate Information

Service Lineup of NTT's Broadband ServicesService Lineup of NTT's Broadband Services

NOTE 1: Conversion rate EUR1=JPY100

NOTE 2: Prices above do not include tax (5%).

NOTE 3: Rental fees of terminal equipment such as home gateway, are not included.

NOTE 4: ISP charges are typical (depends on ISP).

“FLET'S Hikari NEXT” (NGN+FTTH)

€52

Monthly Charge (fixed-rate)


Otherservices€10 €5+

VoIP*ISP

Otherservices€8 €5+

VoIP*ISP

FLET'S ADSL(47Mbps (down stream), flat-rate) €33


Otherservices€8.5 €17+

PSTNISP

Other charges

Max. 200Mbps,flat-rate

€25-44

* VoIP services are optional

(Monthly basis)

depending on the building sizedepending on the building size

FLET’s Hikari offers fiber quality broadband internet connection

with an affordable price, realizing same price range with the

conventional copper broadband (ADSL).

FLET’s Hikari offers fiber quality broadband internet connection

with an affordable price, realizing same price range with the

conventional copper broadband (ADSL).


Comparison of Broadband ServicesComparison of Broadband Services

Source: OECD Broadband Portal 2011

Japan’s FTTH services are one of the most affordable and widely

covered the in the world. With nearly 90% national coverage,

60% of broadband subscriptions in Japan are FTTH.

Japan’s FTTH services are one of the most affordable and widely

covered the in the world. With nearly 90% national coverage,

60% of broadband subscriptions in Japan are FTTH.

42.71

122.45

45.34

58.83 55.95

29.87

11.00%13.10%

67.00%

86.50%

56.59%

5.90%

60.91%

Japan Korea US France Germany UK

Price, USD,

Month

(average over

45Mbps)

FTTH/B

Household

coverage

FTTH share in

all broadband

subscribers


◆◆◆◆◆◆◆◆◆◆◆◆

NGN service area

March 2008

Commercialservice launched

Commercialservice launched

Fiscal Year

2008

Service available to approx. 60% of households and businesses in existing FLET’S Hikari service areas


2009

Service available to allexisting FLET’S Hikari service areas

Service available to allexisting FLET’S Hikari service areas

Available to all service areas in eastern Japan and 80% of service areas in western Japan



2010

� NTT started provision of NGN service by overlaying the existing FTTH service.

� At the end of FY2010, NGN service (FLET’S Hikari Next) became available at all

households and businesses in the existing FTTH (FLET'S Hikari) service areas.

� GE-PON systems are used to both detached and multi-dwelling houses.

Expansion of NGN Service AreasExpansion of NGN Service Areas


NNI: Network-to-Network Interface

SNI: Application Server-to-Network Interface

UNI: User-to-Network Interface

“FLET’S Hikari NEXT” is NTT’s optical internet access service provided by using NGN, IMS and FTTH (GE-PON) technologies.

“FLET’S Hikari NEXT” is NTT’s optical internet access service provided by using NGN, IMS and FTTH (GE-PON) technologies.

Basic Structure of NTTBasic Structure of NTT’’s NGN FTTH Services NGN FTTH Service

•PPPoE session is used to connect and switch users’ devices to ISPs’ network •More than 350 xSPs

TheInternet

NGN

SNI

IXLocal office

Service providersFLET’S Hikari NEXTFLET’S Hikari NEXT

VoIP

UNI

Internet IP-TV

FTTH(GE-PON)

NNI

ISP

ISP

ASP

PSTNNNI

PSTN Telephonenetwork

IMS


• Introducing Attractive Services

� Triple-play service – Internet, VoIP, IPTV

� Remote support – Enhanced user support

� Promotion of Fixed broadband/WiFi/Mobile broadband

convergence

• Cost Reduction on both CAPEX and OPEX

� High quality and cost-conscious equipment

� Kaizen -- Relentless improvement of the overall process and

feedback from “field” to “development”

With a vision of “Realizing an affluent society with ICT”, NTT has

continued to promote broadband services including FTTH.

With a vision of “Realizing an affluent society with ICT”, NTT has

continued to promote broadband services including FTTH.

NTT was successful in achieving 90% coverage

and 60% broadband subscription rate

NTT was successful in achieving 90% coverage

and 60% broadband subscription rate

NTTNTT’’s Initiative for FTTH Penetrations Initiative for FTTH Penetration


ONU

STB

IP phone (VoIP)IP phone (VoIP)

TV and VideoTV and Video

TripleTriple--play Serviceplay Service

A lowA low--cost & highcost & high--quality phonequality phone

TV & Video anytime, anywhereTV & Video anytime, anywhere2.4 million subscribers*

(Approx. 15% of FTTH)

13 million subscribers*(Approx. 80% of FTTH)

InternetInternet

HighHigh--speed broadband accessspeed broadband access(up to 200Mbps)(up to 200Mbps)

�IP telephony, TV & video services, in addition to Internet access

service are the key services to increase FTTH subscribers.

�As a result, 86% of NTT broadband users use FTTH.

�IP telephony, TV & video services, in addition to Internet access

service are the key services to increase FTTH subscribers.

�As a result, 86% of NTT broadband users use FTTH.

*as of September 2011

NGNFTTH


Support CenterCustomer’s Home

�Monthly charge* \500 (€5)

�Supported devices PC, printer, router, wireless-LAN, digital camera,

digital video camera, Wii/Nintendo 3DS/PS3, STB,

MP3 player, external storage, projector, etc.

3.3 million subscribers*(Approx. 22% of FTTH)

3.3 million subscribers*(Approx. 22% of FTTH)

NGN

Consulting, tutoring and

taking over the mouse remotely

�24-hours total support and trouble-shooting service for your

home ICT devices

�Take over your mouse and keyboard remotely, when needed

�24-hours total support and trouble-shooting service for your

home ICT devices

�Take over your mouse and keyboard remotely, when needed

*as of March 2011

"Remote Support Service""Remote Support Service""Remote Support Service"

FTTH FTTH IIntroduction ntroduction SSupport for ICT upport for ICT BeginnersBeginners


FTTH is gaining a role of accommodating smart phones’ large

amount of traffic to provide a better user experience

FTTH is gaining a role of accommodating smart phones’ large

amount of traffic to provide a better user experience

PromoPromotete FTTH Broadband for Mobile DevicesFTTH Broadband for Mobile Devices

3G/LTE

MobileNGN

FTTH

WiFiLAN

3G/LTE

The Internet

Home

/Office

SmartphonePC Smartphone

WiFi

WiFi

Music Movie Book・

・

・

Variouscontents


Newtechnologies

Newtechnologies

Improveproductivity

using ICT

Improveproductivity

using ICT

PromoteRemote

operation

PromoteRemote

operation

NetworkmigrationNetworkmigration

ReduceEquipment

costs

ReduceEquipment

costs

Standardize& simplify

work process

Standardize& simplify

work process

Efficientuse of network

resources

Efficientuse of network

resources

SafetySafetyimprovementimprovement

WorkWorkimprovementimprovement

CostCostreductionreduction

FailureFailurepreventionprevention

GOALGOAL

NTT Group is continuously working to improve quality of our

services and to reduce costs

NTT Group is continuously working to improve quality of our

services and to reduce costs

Initiatives for Reducing CAPEX/OPEXInitiatives for Reducing CAPEX/OPEX


3F

2F

1F

Common

Space

Phone / PC / TVOptical

Outlet

Optical

Splitter

Examples of Reducing CAPEX/OPEXExamples of Reducing CAPEX/OPEX

Compared to metal wiring, optical cable does not require electric

power and uses less common space, with flexible expandability.



NTT ExchangeNTT Exchange

Home Terminal

1F

Optical Outlet

Easy to connect/disconnect

Optical Splitter

Less space / No electricity

Low Friction Indoor Cable

Capable of installing 30 cables

on a 22mm diameter duct


3F

2F

1F

Common

Space


Outlet

Optical

Splitter







Home Terminal

1F

Optical Outlet


Bend Free Optical Cable

Can be bundled like metal cables

Optical Splitter






3F

2F

1F

Common

Space


Outlet

Optical

Splitter







Home Terminal

1F

Optical Outlet


Bend Free Optical Cable

Can be bundled like metal cablesConventionalIndoor Cable

Low-frictionIndoor Cable

40% reduction

Wire Installation Time

Optical Splitter






ServiceRepresentative

Receipt ofinstallation request

Receipt ofinstallation request

FacilityselectionFacility

selection

Installationorder

Installationorder

Facility dataupdate

Facility dataupdate

Installation workInstallation work

InstallationarrangementInstallation

arrangement

Customer

Service activated

ApplicationMinimum 5 days

Improvement of ServiceImprovement of Service--Order ProcessOrder Process

Fieldtechnician

Equipment used is selected automatically based on application data.

Field technician can easily install with only the information sent to their PC or mobile phone

Installation data is sent in real time.

� Determine the installation date based on facility data when application received.

� Service is activated quickly by automatically selecting equipment and distributing

accurate installation information.

� Determine the installation date based on facility data when application received.

� Service is activated quickly by automatically selecting equipment and distributing

accurate installation information.

EquipmentData

Customerdata

ConstructionData


Rich communications over FTTH is the enabler for

“Realizing an affluent society with ICT”

Rich communications over FTTH is the enabler for

“Realizing an affluent society with ICT”

ConclusionsConclusions

��Broadband Market in JapanBroadband Market in Japan

� Best price-to-speed performance in the world

� FTTH is still growing

��NTTNTT’’s Initiative for FTTH Penetrations Initiative for FTTH Penetration

� Introducing attractive services

� Cost reduction on both CAPEX and OPEX


Thank you !Thank you !