Document propriété de SFR. 29/08/2014Document propriété de SFR.

« FFTH/ FTTB : Country Cablo-Fiber Dynamics »

Document propriété de SFR. Document propriété de SFR.

•AGENDAAGENDAAGENDAAGENDA

1. Scales & Front-End Architecture

2. Regulator defines public & private models in FTT H

3. Technologies

4. Smart Initiatives and thoughts

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Document propriété de SFR. Document propriété de SFR.

1. 1. 1. 1. ScalesScalesScalesScales

• Optical Fiber is Our Generation of « copper » for the 21 ’s century »

1. Massive investment (billion USD )

2. Long term investment (30 years)

3. Massive B2C Flows (million of actions to build and operate optical routes).

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Item (Ratio)Item (Ratio)Item (Ratio)Item (Ratio) RussiaRussiaRussiaRussia FranceFranceFranceFrance

Nber of Inhabitants (2.5) 143m in 2014 64m in 2014 and 67 in 2030

Space (31) 17,019 million of squarekilometers

0,55 million of square kilometers

Distribution of urbanareas (4)

37 cities with 44 million inhabitants.

20 cities (Agglo) with 6,2 million inhabitants

Investment required for 80 % FTTH coverage

? 25- 30 billion Euros(500-1000 euro / customer line)

Fiber coverage duration ? Ambition: 80% of population covered by FTTH in 2022; reality

could take more time

Document propriété de SFR. Document propriété de SFR.

•Back up Back up Back up Back up –––– FrontFrontFrontFront----End ArchitectureEnd ArchitectureEnd ArchitectureEnd Architecture

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Document propriété de SFR. Document propriété de SFR.

•2. 2. 2. 2. RegulatorRegulatorRegulatorRegulator definesdefinesdefinesdefines public & public & public & public & privateprivateprivateprivatemodelsmodelsmodelsmodels in FTTH in FTTH in FTTH in FTTH ((((stimulatingstimulatingstimulatingstimulating investmentsinvestmentsinvestmentsinvestments and and and and

homogeneoushomogeneoushomogeneoushomogeneous services over all the Country)services over all the Country)services over all the Country)services over all the Country)

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TITRE

5

15,8M 15,8M 15,8M 15,8M lineslineslineslines11,9M 11,9M 11,9M 11,9M lineslineslineslines5,5 M 5,5 M 5,5 M 5,5 M lineslineslineslines

(Paris(Paris(Paris(Paris, Lyon, Marseille…), Lyon, Marseille…), Lyon, Marseille…), Lyon, Marseille…)

Zone Zone Zone Zone 1 : High 1 : High 1 : High 1 : High DensityDensityDensityDensity areas areas areas areas

(Top 20 (Top 20 (Top 20 (Top 20 citiescitiescitiescities))))

Zone 2 : Medium Zone 2 : Medium Zone 2 : Medium Zone 2 : Medium DDDDensityensityensityensityareas (Top 3500 areas (Top 3500 areas (Top 3500 areas (Top 3500 citiescitiescitiescities))))

� Private initiative FTTH

� Competition via infrastructures by different operators up to the final building

� Vertical line in building shared between Ops with Co-investments 1/N or line location

� Multiple Network and Service Operators

� Private initiative FTTH

� Competition via infrastructures by different operators up to the final building

� Vertical line in building shared between Ops with Co-investments 1/N or line location

� Multiple Network and Service Operators

� Private initiative FTTH

� Private investment with monopolistic infrastructure by different operators on different cities with mutual agreements on co-investments.

� Passive Network shared

� OLT are proprietary

� Co-investment by % penetration (abinitio or post) or location/month

• 1 Network operator and multiple Service operators

� Private initiative FTTH

� Private investment with monopolistic infrastructure by different operators on different cities with mutual agreements on co-investments.

� Passive Network shared

� OLT are proprietary

� Co-investment by % penetration (abinitio or post) or location/month

• 1 Network operator and multiple Service operators

Zone Zone Zone Zone 3 : 3 : 3 : 3 : LowLowLowLow DDDDensityensityensityensity areas areas areas areas ((((remainingremainingremainingremaining 33000 33000 33000 33000 citiescitiescitiescities))))

� Public initiative (FTTH) subsidising Network roll out and last mile.

� Regions, county, department create agreements to build the network and operate it as it is for Water and Electricity.

� 1 consortium by region in charge of Construction delegating Operations to One existing Network Operator with multiple Service Operators.

� Complementing Mobile initiatives for full coverage (20%).

� State or Retirement fund could be interested in such long term secured investments.

� Model = Same Price per line for Service Operators as for Zone 2.

� Public initiative (FTTH) subsidising Network roll out and last mile.

� Regions, county, department create agreements to build the network and operate it as it is for Water and Electricity.

� 1 consortium by region in charge of Construction delegating Operations to One existing Network Operator with multiple Service Operators.

� Complementing Mobile initiatives for full coverage (20%).

� State or Retirement fund could be interested in such long term secured investments.

� Model = Same Price per line for Service Operators as for Zone 2.

Document propriété de SFR. Document propriété de SFR.

3333. Technologies . Technologies . Technologies . Technologies (FTTH and FTTB (FTTH and FTTB (FTTH and FTTB (FTTH and FTTB bringbringbringbring the the the the samesamesamesame virtuevirtuevirtuevirtue… … … …

…and …and …and …and willwillwillwill mergemergemergemerge withwithwithwith time)time)time)time)

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DOCSIS 2.0 DOCSIS 3.0 DOCSIS 3.1

Zones 30 M Zones 100 M Phase 1 Phase 2 Phase 3

DownStream

Frequencies (MHz) 54 - 1002 54 - 1002 108 - 1002 300 - 1152 500 - 1700

Modulation 64 256 256 ≥ 1024 ≥ 1024

Number of channels 1 8 24 “142” “200”

Capacity /Max

Throughput35M 400M 1.2G 7G 10G

Upstream

Frequencies (MHz) 5 - 42 5 - 42 5 - 85 5 - 230 5 - 400

Modulation 16 64 64 ≥ 256 ≥ 1024

Number of channels 1 4 12 “33” “60”

Capacity /Max

Throughput10M 110M 350M 1G 2.5G

2009 2014 2016 ? 2020 ?

Similar to

GPON !

Similar to

NGPON !

Competitive vs ADSL

2004

Competitive

vs VDSL

Document propriété de SFR. Document propriété de SFR.

•4444. Key Smart Initiatives and . Key Smart Initiatives and . Key Smart Initiatives and . Key Smart Initiatives and TTTThoughtshoughtshoughtshoughts

I. Keep in mind in your architecture that OLT, DSLAM and C MTS will be soon only one equipement in Networks. IP backbone /Transport is the bottleneck.

II. Splitting countries in different –non overlapping- zon es (3) based on density enablessustainable investment on the whole territory.

III. Identifying the locations which bring the highest appet ite for FTTH/FTTB stimulatingthe market (eg KPN/Reggefiber with 1,7M households, Goo gle Fiber/Kansas Cities) maximize user commitments and ROI.

IV. Monitoring density, existing competitive solutions (V DSL / Cable availability), Mobile convergence maximize penetration, retention and ROI.

V. Dissociate well Network Operators and Service Operator s processes to structure information systems properly especially when operators d o both. Be careful on the complexity to roll out an efficient business model ( 1->N to N<->M)

VI. Cable (FTTB) brings a huge speed , service and financi al advantage thanks to the existing connexion in the household units and in parti cular in rural areas with TV services.

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Document propriété de SFR. Document propriété de SFR.

•ThankThankThankThank You!You!You!You!

•Benoit Duchene

•Managing Director - Optical Fiber

•Mob : 0609176426

•Email : benoit.duchene@sfr.com

•SFRSFRSFRSFR

•12, rue Jean12, rue Jean12, rue Jean12, rue Jean----Philippe Rameau Philippe Rameau Philippe Rameau Philippe Rameau –––– CS 80001CS 80001CS 80001CS 8000193634 La Plaine Saint93634 La Plaine Saint93634 La Plaine Saint93634 La Plaine Saint----Denis CedexDenis CedexDenis CedexDenis Cedex.

•www.sfr.com

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