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a leadingTelecommunicationSolutions Partner

Developing Next Generation FTTH Access Networks

Christos Kontellis, General Manager Systems & Solutions Marketing Division

May 12th , 2009

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Presentation Outline

• FTTH market overview

• OSP Optical Access network optimization

• INTRACOM TELECOM FTTH Proposition

• Conclusion

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yesterday today tomorrow

1 Mbps1 Mbps

10 Mbps10 Mbps

20 Mbps20 Mbps

100 Mbps100 Mbps

56 Kbps56 Kbps TelephoneTelephone

Low speed internetLow speed internet

VoIPVoIP

High speed internetHigh speed internet

SD TVSD TV

Online gamingOnline gaming

Video conferenceVideo conference

HDTVHDTV

Multiple channels HDTVMultiple channels HDTV

Video on DemandVideo on DemandADSL / ADSL / ADSL2/ADSL2/ADSL2+ADSL2+

AON/PONAON/PONVDSL2VDSL2

POTSPOTS

ban

dwid

th

To meet the bandwidth needs, To meet the bandwidth needs, telcostelcos upgrade their upgrade their networks. Fiber penetrates into the access domain.networks. Fiber penetrates into the access domain.

Ultra HDTVUltra HDTV

Modern Operator’s ChallengesServices and Bandwidth Evolution

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The technology of today has reached its limitsFiber breakthrough is required to support new services

Today’s Access technology bottleneck

Service DS US

HD-TV (1 channel) 10 Mbps <1Mbps

SDTV 1 channels 5 Mbps <1 Mbps

High Speed Internet 3Mbps <1 Mbps

On line Gaming 3Mbps 1 Mbps

Video Conference 4Mbps 4Mbps

Home surveillance 0,1 Mbps 1 Mbps

TOTAL >25Mbps >7Mbps

• Today Broadband Access is mainly provided by ADSL2+ technology.

• Despite the relative short copper loop in Greece it is assumed that almost 50% of the subscriber basis can not be served with more than 9Mbps DS and 0,8 Mps US with reliable links of higher than 8dB target SNR

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IP

IP

fiber

fiber

OLT

OLT

ONT

ONT

ONU

Future ANArchitecture

Point-to-PointFiber based

GPONFiber based

EP2P

ONU

1.GPON now2.XGPON 2010 3.WDM PON 2012

IPVOIP

Central Office Access Loop Home

STB TV

IAD

copperMSAN

xDSL

xDSL Copper based

Existing ANArchitecture

Access Network Evolution

EVOLUTION OF ACCESS NETWORKS FROM COPPER TO FIBER

IPVOIP

Central Office Access Loop Home

STB TV

IAD

copperMSAN

xDSL

xDSL/fiber hybrid

Existing ANArchitecture

fiberfiber

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CA

PEX

FTTx costs – Service Providers view

Cost elements ADSL2 FTTC PON P2P

Access DSLAM Cabinet OLT Ethernet Aggregation

CPE IAD IAD ONT CPE

Access Infrastructure Existing Copper

Existing Copper: last mile

Fibre : CO to Cabinet

Fibre Fibre

IP BackboneOSS

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FTTx market overview

• Telecom operators face the challenge of providing advanced and innovative services to their customers to minimize the churn and increase their revenues.

• Next Generation Network Services provisioning and the convergence of voice, video and data services over a single connection pose significant enhancements at the network architecture.

• Copper reached its limits and fiber needs to be widely utilized deep in the network, penetrating even into the access domain.

• FTTB topologies and the utilization of ADSL2/2+ or VDSL2 technology over the existing copper plant offers a cost efficient alternative solution that covers the needs of triple play delivery.

• Fiber-to-the-Home (FTTH) is the ultimate solution for the provision of the required abundance of bandwidth to the end user, but the associated high installation cost acts as a deterrent for many carriers to proceed to mass deployments of such implementations.

FTTH is the ultimate solution

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The OSP issue needs careful handling

FTTH - Outside Plant deployment

• Optimization of Outside Plant works is of immense importance as OSP represent more than 70% of overall CAPEX.

• OSP contribution to overall CAPEX varies with respect to Brownfield or Greenfield conditions and the chosen FTTH technology (Active vs. PON), but always represents the largest portion.

• OSP network design needs to be parameterised reflecting local conditions

• Rollout mechanism must be well tuned to achieve minimum implementation costs and deployment time

CAPEX Breakdown of Greenfield FTTH-P2P

CAPEX Breakdown of OSP works

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Optimizing OSP Design

The design of a FTTx network depends on:

• Demographic parameters of a specific area (households/Km2 )

• Geographical settlement of the buildings of each area

• Network rollout plan (on demand vs. 100% coverage)

• Selection of FTTx technology (P2P, PON)

• Spare capacity (ducts, fiber)

OSP design optimization requires modeling of OSP FTTH deployment so as to efficiently calculate :

• the cost (CAPEX & OPEX) of an FTTx network deployment (Low Level Design)

• Bill of Materials (Passive & Active)

• Labor (e.g. trenching, fiber splicing, etc.)

INTRACOM TELECOM taking advantage of the long experience in delivering large scale optical projects has developed a tool to efficiently model the OSP deployment

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OSP FTTx Deployment Model

• Examination of the demographical parameters and building settlement specifically tuned for Greece’s urban areas (Athens, Thessaloniki)

• Adaptation of these areas to a simplistic topology (avoiding the complexity of the real building settlements)

• The FTTx network is divided into three parts: Drop network, Distributionnetwork, Feeder network

• The model is based on a “bottom-up” approach starting from the building terminations, through the drop, distribution and feeder networks, up to the POP/CP.

• The model is adaptable to any optical access technology.

Overview

Benefits • Estimate the CAPEX and OPEX of the access network’s passive infrastructure

• Provide several deployment scenarios

• Minimize the total investment risk

• Simplify access network design

Expedite design, Optimize cost, Minimize risk

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OSP cost estimation in Greece

OSP cost varies significantly with respect to demographic parameters

Average:727Average:727€€ / / householdhousehold

FTTH/PtP Passive Infrastructure Cost per Subscriber

0 €

500 €

1.000 €

1.500 €

2.000 €

2.500 €

3.000 €

Kifisia Glyfada N. Smyrni Kalithea Thessaloniki

Municipalities

Euro

s/H

ome

Pass

ed

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INTRACOM TELECOM• A Leading Multinational ICT Solutions Provider in SE Europe• Over 30 years experience in the telecom market• Strong regional presence throughout EMEA

Subsidiary / Branch operations in 14 countriesExports to over 50 countries

• Core Business Offerings:Broad ICT Product & Solutions PortfolioNetwork Integration & Professional ServicesOutsourcing

• Own Product Portfolio for : Access & TransmissionContent, VAS and INOSS/BSS

• End to End solution Provider of large scale Telco projects using own and best of breed 3rd party products and covering all aspects from Network Planning & Design to Supply & Implementation and finally Post-Sales Support, Training, Integration & Operation

• more than 2,5 m Access ports deployed in Greece, Russia, Moldova, Cyprus, USA Canada Philippines Romania, Armenia, Albania, Hungary Uruguay, Bolivia, New Zealand

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INTRACOM TELECOM Research Activities

• NG OPTICAL ACCESS NETWORKS

10 Gb/s Symmetric GPON

Hybrid TDM/CDWM PON or TDM/WDM PON

WDM PON (colorless technologies)

• Participation in EU project SARDANA

Active participation in EU-funded Project 217122, STREP:

SARDANA: “Scalable Advanced Ring-based passive Dense Access Network Architecture”

Along with University of Catalonia (UPC), France Telecom, Tellabs, AIT, IT (Portugal), ISCOM (Italy)

• Participation in optical communication conferences (OFC, ICT Mobile Summit)

Follow closely the latest development in the FTTH technology area

in Fiber Optic Technology

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• Today’s increased demand for bandwidth consuming applications (including IPTV, HDTV) is not satisfied by the existing copper infrastructure;

• FTTx mass deployment is inevitable;

• FTTH penetration will build slowly but surely through the next five years;

• Need to establish the necessary legislative framework that will ease the deployment of new FTTH networks;

• Optimization of OSP FTTH deployment, which actually represents the largest portion of CAPEX, requires efficient design tools;

• INTRACOM TELECOM has the solution portfolio & the required expertise to assist in realizing the FTTx project of Greece which is considered mandatory and effectively will provide to all of us a better way of living.

Conclusion

INTRACOM TELECOMINTRACOM TELECOM

19.7 km 19.7 km MarkopoulouMarkopoulou Ave.Ave.

19002 Peania, Athens, Greece19002 Peania, Athens, Greece

TT +30 210 667 1000+30 210 667 1000

FF +30 210 667 1001+30 210 667 1001

www.intracomwww.intracom--telecom.comtelecom.com