Wireline Technologies Dave Russell

Wireline Broadband Technologies

2

Addressing the Bandwidth Challenge

External drivers are stimulating demandMovement towards more symmetry and less oversubscription

3

Wireline Technologies

Hybrid Fiber Coax RF Video DOCSIS

Twisted Pair ADSL2+ VDSL2

Fiber-to-the-Premises P2P Ethernet BPON---->GPON

4

Residential Internet Access

5

HFC Architecture

VoiceSwitch

DataRouter/

IP Switch

Video

DFBLaser Optical

Node

CoaxRG6

Headend

P/S

Home

RF MUX

RF

RF

RF

RF

RF

RF

RF

RF

Optical Distribution Node100 - 2000 Households Passed

4 coaxial branches typicall

4-20 spare fibers“extra fiber simplifies

node splitting”

6kft max

Distribution Coaxial Cable

6

0 100 200 300 400 500 600 700 800

Frequency [MHz]

Return5 - 42 MHz Analog

ForwardDigital

Forward

FM

266 digitalchannels

(8 SDTV per6Mhz avg.)

77 - 6Mhz analogTV channels (NTSC)

Multiple digital and analogcarriers of mixed size

Basic 550Mhz system

Basic 750Mhz system

Return for both systems

MSO 750 MHz Spectrum

7

Downstream HFC Capacity Improvement

• Subdivision of existing optical nodes. “Node split”.

• Stat mux digital channels. “Switched Digital Video”.

•Movement of analog channels to digital. “Spectrum re-use”.

•Increase the upper RF spectrum to 1Ghz. “Spectrum expansion”

• Use RF spectrum above 1Ghz. “Spectrum overlay”.

8

0 Hz 5 MHz 10 MHz 15 MHz 20 MHz 25 MHz 30 MHz 35 MHz 40 MHz 42 MHz 45 MHz 90 MHz

Status MonitorSet top control

Typically not used

CableModem“Typical”

Cable Telephone“Typical”

Typically not used

Typical N.A.Diplex Filter Cutoff

Both platforms are generally able to use this space

MSO Upstream Spectrum

Useable with mid-band split future

9

Upstream HFC Capacity Improvement

• Subdivision of existing optical nodes. “Node split”.

• Conversion to all digital. Allocate a portion of former downstream bandwidth to upstream. “Mid-split”.

• Use RF spectrum above 1Ghz. “Spectrum overlay”.

•Use micronode (fiber-to-the-premise, aka Docsis PON or DPON) technology where more bandwidth is needed

10

DOCSIS Overview

Standard adopted by the cable industry in the late 1990’s

DOCSIS is an IP over ethernet standard Layer 3 based architecture Broadcom chips in the serving office (Cable Modem Termination System) and the

Cable Modem Cisco routed core network (Cisco dominates the CMTS business)

All future CATV IP services run over DOCSIS PacketCable-VOIP standard, uses NCS (MGCP) moving to SIP PacketCable Multimedia-extends control plane to all multimedia services

DOCSIS is a global standard Certification waves for vendors across the globe\ Testing labs in Europe and Asia

11

DOCSIS Version OverviewDOCSIS Version DOCSIS 1.0 DOCSIS 1.1 DOCSIS 2.0 DOCSIS 3.0

Services

Broadband Internet Tiered ServicesVoIPVideo ConferencingCommercial ServicesEntertainment Video

X XXX

XXXXX

XXXXXX

Consumer Devices

Cable ModemVoIP Phone (MTA)Residential GatewayVideo PhoneMobile DevicesIP Set-top Box

X XXX

XXXX

XXXXXX

Downstream Bandwidth

Mbps/channelGbps/node

405[1]

405[1]

405[1]

160 minimum[2]

5[1]

Upstream Bandwidth

Mbps/channelMbps/node

1080[3]

1080[3]

30170[4]

120 minimum[5]

170[4]

[1] Assumes 750MHz of available downstream spectrum (125 channels)[2] Aggregation of four 6MHz channels. With 256QAM = 160 Mbps [3] Assumes ~25MHz of useable upstream spectrum [4] Assumes ~35MHz of useable upstream spectrum [5] Aggregation of 4 6MHz channels

12

DOCSIS Capacity Roadmap

30Mbps (U)

DOCSIS 2.0 (symmetric services )

40Mbps (D)

DOCSIS 3.0 (channel bonding)

Spec Release Service Available

160Mbps (D)

120Mbps (U)

2002 2004 2006 2008 2010

Spec Release Service Available

13

DOCSIS Downstream Rate Equally Distributed

Downstream Rate (Equal Committed Distribution)

0.000

0.500

1.000

1.500

2.000

2.500

3.000

3.500

0 50 100 150 200 250 300 350 400 450 500 550 600 650 700 750 800 850 900 950 1000 1050

Subs per Node

Mb

ps

DOCSIS 1.x: Peak Rate 40Mbps

DOCSIS 2.0: Peak Rate 40Mbps

DOCSIS 3.0: Peak Rate 160Mbps

<node @ 192 subs

14

DOCSIS Upstream Rate Equally Distributed

Upstream Rate (Equal Committed Distribution)

0.000

0.500

1.000

1.500

2.000

2.500

3.000

0 50 100 150 200 250 300 350 400 450 500 550 600 650 700 750 800 850 900 950 1000 1050

Subs per Node

Mb

ps

DOCSIS 1.x: Peak Rate 10Mbps

DOCSIS 2.0: Peak Rate 30Mbps

DOCSIS 3.0: Peak Rate 120Mbps

<node @ 192 subs

15

HFC Capacity Upgrade Comparisons

HFC Upgrade:•Case1: (Switched Digital Video):

• DS: 4Gbps /192 subs ~20Mbps even distribution.• US: 360Mbps /192 subs ~ 1.8Mbps even distribution.

•Case2 (Bandwidth Expansion):• DS: 5.64Gbps /192 subs ~29.3Mbps even distribution.• US: 360Mbps /192 subs ~ 1.8Mbps even distribution.

•Case3 (Deep Fiber) : • DS: 4Gbps /192 subs ~20Mbps even distribution.• US: 4Gbps /192 subs ~ 20Mbps even distribution.

•Case 4 (Spectrum Overlay):• DS: 4.6Gbps /192 subs ~23Mbps even distribution.• US: 2.4Gbps /192 subs ~ 12Mbps even distribution.

DOCSIS 2.0 (3.0): • DS: 40 (160Mbps) peak.• US: 30 (120Mbps) peak

Conclusion:• In order for the HFC network to meet or exceed FTTN “Committed” Information Rate capabilities,

enhancement via one or more of the several techniques mentioned above will be required.• In order for the HFC network to meet or exceed the VDSL (FTTN) “Peak” Information Rate capabilities,

DOCSIS3.0 Modems and upgraded CMTS will be required.• In order for the HFC network to exceed the FTTN “Committed + Peak” Bandwidth capabilities both A) and

B) would be necessary. However; a) or b) alone could have an interim marketing advantage over FTTN.

Copper and FTTH Technologies

17

DSL Technologies

Residential to Small-Medium Business Services CentricADSL, ADSL S=1/2

Considered legacy

ADSL 2+ Today’s mainstream technology Bonding emerging as an option for rate-reach expansion

VDSL2 Big in Asia, emerging in North America – optimized for MDU and sub 5 Kft loops

Business Services CentricHDSL 4

Today’s mainstream DS1 services technology

SHDSL CLEC centric approach, also used for bonded Ethernet services

ADSL2+ Annex M Symmetric service mode ~ 1 Mbps, higher with bonding

VDSL2 Emerging

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Percentage of Distribution Loops Shorter than X

25.0%

35.0%

45.0%

55.0%

65.0%

75.0%

85.0%

95.0%

0 1000 2000 3000 4000 5000 6000 7000 8000 9000

X, Length (feet)

Per

cen

t o

f lo

op

s sh

ort

er t

han

X

1983 Survey

1990 DLC Survey,CSA-designed loops(60% of loops )

Distribution Network Loop Lengths

95% Percentile Distribution Loop Length (1983 Survey)

Source: T1E1.4/2003-212, Telcordia Technologies

95% Percentile Distribution Loop Length (1990 Survey)

19

ADSL2+ Technology

Competitive BroadbandArchitectures:

BBDLC, MSAP

Technologies: ADSL2+ (VDSL2 Long Reach)

Drivers: Brownfields, retrofits, low/medium

competition, basic IPTV, competitive HSD

Competitive Broadband<15 Mbps

Advanced Broadband20-30 Mbps

Ultimate Broadband>30 Mbps

3.5kft 6kft 18kft

ADSL2+

Beyond

20

VDSL2

Advanced BroadbandArchitectures:

FTTN

Technologies: VDSL2

Drivers: Brownfields, high competition, advanced

IPTV

Competitive Broadband<15 Mbps

Advanced Broadband20-30 Mbps

Ultimate Broadband>30 Mbps

3.5kft 6kft

VDSL2

18kft Beyond

21

DSL Rate / Reach Graph (downstream)B

and

wid

th (

Mb

ps)

Loop Length (26 AWG)

VDSL2 Profile 8d

ADSL2+ / ADSL2

VDSL2 / ADSL2+ Cross-over Point

22

FTTN Deployment Targets

Existing copper serving areasReuses high quality copper in urban/suburban areas.

Remote DSLAM placement at feeder-distribution interface

Greenfield fill-inNew homes in areas already served by copper plant.

MDU’s VDSL2 is a natural choice for serving MDU’s.

To date, most VDSL2 deployments are for MDU’s.

23

Fiber-to-the-Premises

Ultimate BroadbandArchitectures:

FTTP

Technologies: GPON, P2P

Drivers: Greenfields, overbuilding existing copper

plant, high competition areas

Competitive Broadband<15 Mbps

Advanced Broadband20-30 Mbps

Ultimate Broadband30-100+ Mbps

3.5kft 6kft

GPON

18kft Beyond

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FTTP Standards

Standards bodies that have specified FTTP protocols

International Telecommunications Union (ITU-T/FSAN)

Institute of Electrical & Electronics Engineers (IEEE)

ITU-T/FSAN

BPON (G.983)

GPON (G.984)

IEEE

EPON (aka GEPON or 802.3ah P2MP)

Point-to-Point Ethernet (aka Active Ethernet or 802.3ah pt-to-pt)

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North American FTTP Deployments

Deployed TechnologyDeployed Technology

87%87%

4%4%

26

P2P Ethernet FTTP

P2P is well suited for serving enterprise customers Designed to support transport and the dedicated facilities that enterprise customers demand

Enterprise customers take responsibility for security, on-premises networking, VLAN management, etc.

P2P is suitable for residential customers beyond the reach of PON

RemoteResidential

P2PSwitch

IP Services

IP Video

VOIPISP

VideoHeadend

Enterprise

27

Gigabit Passive Optical Network (GPON)

Voice Switch

Internet

IP Video

RF Video

Central Office / Remote Terminal

OLT

Businesses

Homes

MDUsODN – Optical

Distribution Network

OLT – Optical Line Termination

ONT – OpticalNetwork Termination

– 1490 nm

– 1310 nm

– 1550 nm

28

Fiber-to-the-Premise Projections

29

Fiber is the End Game…

The question is how fast?

ConservativePrimarily green field builds

Slow overbuild ramp

AggressiveRapid overbuild from the start

Accelerated capital investment

High target for eventual coverage

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Flexible Residential Service Delivery

BPON or 1.2 or 2.5 Gbps GPON RF Video or Not

PersonalityModule

TDM or VOIP

10/100 or Gigabit Ethernet

31

FTTP Deployments in Minnesota

Total FTTP homes in Minnesota (as of 9/30) ~ 18 to 20,000

2007 FTTP deployments in Minnesota (through 9/30)

Homes 5,610 Up 75% year over year

Percent RF Video 50% Declining over the next few years

Percent with GE interfaces 17% Likely to exceed 80% in 2008

Percent GPON 53% Likely to exceed 80% in 2008 as BPON fades

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Minnesota Rate of Adoption of FTTH

0

100

200

300

400

500

600

1997-2005 2006 2007

New FTTH Homes Per Month

Over half of Minnesota’s Independent Telephone Companies are now deploying FTTH

33

Obstacles to FTTH Deployment in MN

Most operators in Minnesota deploying FTTH are in low growth areas Independent Telcos have led the way rebuilding their ILEC areas with FTTH and through CLEC activity. Over half in Minnesota now deploying FTTH

High growth Twin Cities suburbs have recently deployed copper plant; not yet depreciated No Verizon type overbuilding of copper plant, except in greater Minnesota by IOC CLECs and some innovators, such as Hiawatha Broadband and Jaguar

Most new housing growth in Minnesota is in Qwest territory; Qwest is the only major operator in the U.S. still not deploying FTTH for new residential developments Expect to see more activity in 2008. Committed $300 Million for FTTN deployments over the next two years, probably includes FTTH for some greenfields

Minnesota has few large master planned communities Large sunbelt states projects can demand FTTH

Minnesota law restricts HOAs from signing long term exclusive contracts with FTTH service providers; limits FTTP deployments in new developments Sunbelt states benefiting from new FTTH service providers

34

Peak Downstream Bandwidth

Average Downstream Bandwidth

Support for RF Video

DOCSIS 3.0 (HFC)

160 Mbps 1 Mbps Yes

ADSL2+ (copper)

13 Mbps at 5 kft 5 Mbps at 12 kft No

VDSL2 (copper)

30 Mbps at 3 kft 13 Mbps at 5 kft No

GPON (fiber)

1 Gbps

at subscriber interface

78 Mbps Yes

Residential Technology Summary

Thank You