Alcatel 7342 Intelligent Service AccessManager (ISAM) Fiber to the User (FTTU)O P T I C A L A C C E S S AT I T S B E S T — A N I P - B A S E D G P O N S Y S T E M W I T H G I G A B I T S P E E D S F O R T R I P L E P L AY

B R O A D E N Y O U R L I F E

The Alcatel 7342 ISAM FTTUenables IP converged tripleplay services by offeringmaximum bandwidth and QoSover fiber access. Its FSANstandards compliant GPONimplementation is unmatchedin features — 2.5 Gb/s band-width, 20 km reach, ONTManagement and ControlInterface (OMCI), and themost robust QoS for triple play services. The Alcatel 7342 ISAM FTTU integratessmoothly with legacy voiceand RF video networks, andallows customers to grow newservice revenue and offer truegigabit download speeds. Withthe Alcatel 7342 ISAM FTTU,customers can decrease OPEXfor technicians and servicerepresentatives, and reducechurn with attractive servicebundles, increasing ARPU and decreasing subscriberacquisition cost.

The Alcatel 7342 Intelligent ServicesAccess Manager (ISAM) Fiber to the User(FTTU) system provides a 21st centuryplatform for bundled services and offers a range of network applications includingfiber access to residential and businesssubscribers, as well as subscribers inmultiple dwelling or tenant units (MDU/MTU). With the Alcatel 7342 ISAM FTTU,service providers gain a long-term strategicadvantage over their competition. Theycan offer any service mix with increasedreliability and performance, while signifi-cantly lowering operational costs.

The Alcatel 7342 ISAM FTTU uses FullService Access Network (FSAN) standardscompliant gigabit passive optical network(GPON) technology to multiplex any mixof voice, video or data in the central office(CO) onto a single fiber that is terminatedat the subscriber’s premise. Each PON linesupports 2.5 Gb/s downstream and 1.2 Gb/supstream. In addition to GPON perform-ance, PON lines can be extended up to 20 km or shared by up to 64 residential or business subscribers, provided that theyare within the 28 dB optical loss budget.

Forming the foundation for a cost-effective all-IP optical access network, the Alcatel 7342 ISAM FTTU system cansupport next-generation voice, data, andvideo services over IP using Ethernet inter-faces while maintaining robust support forlegacy services such as plain old telephoneservice (POTS) and radio frequency (RF)video. The Alcatel 7342 ISAM FTTU sharescommon components with Alcatel’s market-leading ISAM platform. The Alcatel 7342ISAM FTTU uses Alcatel’s ISAM technologyfor intelligent IP-based access allowingreusability of network deployment modelsand management systems.

As an evolution of the Alcatel 7340 ISAMFTTU, the Alcatel 7342 ISAM FTTU sharesthe same chassis and backplane, and somecommon cards. An existing Alcatel 7340ISAM FTTU can be easily upgraded to anAlcatel 7342 ISAM FTTU by simply replac-ing the two network termination (NT) cards.The Alcatel 7340 ISAM FTTU broadbandpassive optical network (BPON) cards canbe plugged into an Alcatel 7342 ISAM FTTU.

A L C AT E L > 1

Optical Broadband from the Broadband Leader

The Alcatel 7342 ISAM FTTUsystem offers a GPON solutionwith unparalleled scalability.

INCREASE SERVICE REVENUE Gaining a competitive edge often meansoffering more services to increase revenueand reduce churn; however, most serviceprovider access networks today are notdesigned to deliver a full suite of services.The Alcatel 7342 ISAM FTTU is a strategicaccess platform that enables delivery of these and future services. Offering acomplete suite of voice, data, and videocan dramatically change top-line revenueas shown in Figure 1.

LOWER OPERATIONAL COSTSIncreasing revenue from new services is only part of the value offered by theAlcatel 7342 ISAM FTTU solution. Serviceproviders are beginning to document theadvantages of optical access networks interms of operational savings. The fiber-based Alcatel 7342 ISAM FTTU solutionusing passive elements delivers costsavings that can result in up to 40 to 60percent lower cash expenses for laborcompared with using existing copper

2 < A L C AT E L

50

200

150

100

0 Local

ARP

U (I

n U

.S.

Dol

lars

)

Voice Only

Voiceand Data

Voice, Videoand Data

Long Distance

Broadband

Basic Video

Source: The Yankee Group, 2004

Digital Video

Premium Video

VoD

DVR

HDTV

Figure 1 - Incremental Revenue from FTTU

networks. Savings are accounted for incustomer contact associated with serviceorders and trouble reporting, outsideplant operations, CO operations, andnetwork operations. As shown in Figure 2,financial analysts see the opportunity toreplace operating expenses with capitalinvestment in FTTU.

The high degree of integration and thepassive nature of the outside plant used in the Alcatel 7342 ISAM FTTU solutiongreatly simplify network operations. Serviceprovisioning can be largely automatedbecause the network is designed to sup-port a spectrum of services from day one(not the case in today’s copper networks).Services can be initiated and terminatedby customers, saving labor costs that canbe used for other customer care such asimproving customer loyalty. In addition,because multiple services are provided via a single network, customer care can be much more effective and offer manymore opportunities for up-selling. Thisalso decreases customer churn, cuttingback on marketing costs for individualservices and order generation.

A L C AT E L > 3

Retained9%

Video18%

HSD28%

Op. Exp.Savings

45%

Source: ARMIS database and Bernstein Analysis

Figure 2 - Incremental EBITDA from FTTU Build

The Alcatel 7342 ISAM FTTU system is the best-in-class solution for deploy-ment of GPON-compliant full serviceaccess networks. It is the result of manyyears of research and development goingback to the mid-1990s. Alcatel is a leaderin PON technology development andinstrumental in the formation of the FSANGroup and standardization of opticalaccess by the ITU-T.

The Alcatel 7342 ISAM FTTU platformhas throughput capacity and operationalenhancements unmatched by its competi-tors. In addition to utilizing Alcatel’smarket-leading GPON technology, this

platform leverages Alcatel’s leadershipposition in DSL and next-generation DLCin two key ways:> The Alcatel 7342 ISAM FTTU uses

the same chassis and common modulesas the industry-leading Alcatel 730xplatform for DSL

> The Alcatel 7342 ISAM FTTU uses thesame management system (Alcatel5526 Access Management System[AMS] in the ANSI markets or Alcatel5523 ADSL Work Station [AWS] in theETSI markets) as the Alcatel DSL andLitespan platforms

4 < A L C AT E L

A Scalable Full-Service Solution

A L C AT E L > 5

7342 P-OLT WDM 1:64Splitters7450 BSA

Internet IPTV

AMS

GigE10 GigE

20 km

GR303

7342 O-SeriesONTs

7342 M-SeriesONTs

7342 B-SeriesONTs*

*B-Series ONT available Release 5.0

Class 5Voice

IP/MPLS VPLS

Small/MediumEnterprises

Single FamilyHomes

MDU with upto 12 LUs

NGN Voice

7750 BSR

G6 VG

2.5 Gb/s

1.25 Gb/s

EDFAR F Video

Optional

1310 nm

1490 nm

1550 nm

Figure 3 - Alcatel 7342 ISAM FTTU in a Network

ACCESS PLATFORM FOR A COMPETITIVE EDGEThe Alcatel 7342 ISAM FTTU platformprovides unmatched, scalable bandwidthusing GPON technology for video, voice,and high-speed data services. Services aredelivered using a single fiber with receiveand transmit wavelengths multiplexedtogether — along with an optional wave-length for downstream RF video. FTTUenables service providers to cost-effectivelydeliver high-revenue, next-generationservices today.

Figure 3 shows the elements of acomplete Alcatel 7342 ISAM FTTU end-to-end solution. The Alcatel 7342 ISAM

FTTU system includes a packet opticalline terminal (P-OLT), located in the CO,that terminates PON interfaces connectedto many outlying ONTs. The Alcatel FTTUsolution includes three different types of ONTs: an indoor ONT (ONT I-Series, ETSI only) for homes, an outdoor ONT(ONT O-Series) for homes, and a multipledwelling/tenant ONT for up to 12 livingunits or small businesses (ONT M-Series).

The Alcatel 7342 ISAM FTTU solutionsupports long reach from the CO to theuser, up to 20 kilometers (12.4 miles). Eachfiber terminated at the OLT in the CO canbe split using optical splitters, which enablesthe Alcatel 7342 ISAM FTTU to serve up

6 < A L C AT E L

to 64 ONTs located at outlying subscribersites. The Alcatel 7342 FTTU performsservice differentiation and traffic flow prior-itization in the ONT and P-OLT. It groomsvoice traffic and forwards it to a voicegateway such as the General BandwidthG6 using GigE interfaces. Data traffic isgroomed and forwarded to a broadbandservice aggregator (BSA) using multipleGigE and 10 GigE interfaces. Traffic flowprioritization is performed at all interfacesusing up to 8 queues for different servicetypes. Traffic flow grooming is performedby using per service virtual LANs (VLANs)in the Alcatel 7342 and virtual private LANservice (VPLS) instances in the BSA. TheVPLS instances are terminated at the BSR,which connects to the IP routed network.

For IPTV, the Alcatel 7342 ISAM FTTUsupports the Internet group managementprotocol (IGMP) proxy/snooping functionwithin the OLT and ONT, permittingdynamic multicast of video channels. TheGigE interfaces at each P-OLT, the GPONinterfaces, and the ONTs receive and for-ward IP video traffic using multicasting. Inaddition to IP video, the Alcatel 7342 ISAMFTTU system includes an optional integrat-ed RF overlay solution for video services.A video optical line terminal (V-OLT) is

used to amplify the video signal usingerbium-doped fiber amplifiers (EDFAs)for transmission downstream.

RESIDENTIAL SERVICE ACCESSA full bundle of services — voice, data,and video — can be provided over a singlefiber cable to any residential customerswhether they are living in single familyunits (SFUs) or MDU/MTUs, for indoor or outdoor deployment. Alcatel ONTs are compliant with ITU-T standards andmanaged through an ONT managementand control interface (OMCI).

The Alcatel 7342 ONT O-Series isdesigned to deliver triple play services to single-family home owners that need a telco demarcation point outside thehome. The ONT O-Series is a temperature-hardened unit ready for outdoor deploymentwith battery backup for lifeline services. Itincludes two or four POTS interfaces andone or two Ethernet interfaces and oneoptional F connector for RF video.

The Alcatel 7342 ONT I-Series availablein FTTU Release 4.1 is designed to delivertriple play services to residential, single-family home customers. I-Series ONTs can either be mounted inside the home or placed free-standing on a desk, and

A scalable architecture, full GPON standards compliance with unmatched performance,and a common management system for all access networks make the Alcatel 7342 ISAMFTTU the most cost-effective optical access solution on the market.

A L C AT E L > 7

can be equipped with a battery backup for lifeline services. They include twoPOTS interfaces for voice and up to twoEthernet interfaces for high-speed dataand one F connector for video. Subscriberscan self-install this ONT if the customer is pre-provisioned with a fiber drop.

The Alcatel 7342 ONT M-Series isdesigned to provide services to residentialsubscribers in MDUs such as apartmentbuildings or multi-tenant units such asbusiness buildings. It has a scalable architec-ture and can be equipped with up to threeservice units. Each service unit terminateseight POTS and four very high bit ratedigital subscriber line (VDSL) interfacesfor four living units per service unit. Serviceunits can be added as needed and are hot-pluggable. The Alcatel ONT M-Series istemperature-hardened and can be deployedoutdoors or inside the building with batterybackup for lifeline services. It supportsIGMP snooping for IPTV and ITU-T H.248/SIP for voice loop emulation and softswitch-based legacy voice services.

All of the ONTs support Internet gate-way message protocol (IGMP) snoopingfor Internet protocol television (IPTV)multicast, and ITU-T H.248/session initiationprotocol (SIP) for voice loop emulation andsoftswitch-based legacy voice services.

8 < A L C AT E L

The Alcatel 7342 ISAM FTTU is part of a complete end-to-end

solution for optical broadband from Alcatel. Leveraging our

leadership in broadband access, Alcatel has developed a solution

that has a robust feature set and is ideal for mass deployment.

It uses a cost-effective, standards-compliant passive optical network

that revolutionizes the service providers’ access network infrastruc-

ture. It gives service providers a long-term competitive edge and

delivers a range of broadband services to consumers over a single

optical fiber.

The Alcatel FTTU product suite consists of the following key

components:

> Alcatel 7342 Packet Optical Line Terminal (P-OLT)

> Alcatel 7342 Indoor Optical Network Terminal (ONT I-Series)

> Alcatel 7342 Outdoor Optical Network Terminal (ONT O-Series)

> Alcatel 7342 Multiple Dwelling Unit Optical Network Terminal

(ONT M-Series)

> Alcatel 5526 Access Management System (AMS)

> Alcatel 5523 ADSL Work Station (AWS)

> Alcatel 5528 Web-Based Access Manager (WAM)

> Alcatel 5020 Softswitch Platform

> Video Optical Line Terminal (V-OLT)

> Media and Voice Gateways

End-to-End Solution

A L C AT E L > 9

Optical technology has been successfullydeployed within the network core toincrease capacity. The access network —the “last mile” — has remained a bottle-neck, limiting the deployment of newservices. Demand for broadband serviceshas resulted in DSL technologies beingdeployed on the existing copper-basedaccess network to increase capacity. Asservice providers look to the future, theywant optical technology in the last mile toprovide the assurance that their networkswill support the needs of today and thedemands of tomorrow.

As new homes and communities arebuilt, or aged plants are refurbished, fiber access is becoming the preferredchoice for build-out by traditional andnon-traditional carriers alike. The capitalinvestment is more than justified by thelong-term operational cost savings andincreased revenues that are gained whileleveraging an access network with virtu-ally limitless capacity. Alcatel understandsaccess networks. Alcatel understands fiberoptics. An Alcatel 7342 ISAM FTTU solu-tion, the world’s first standards-compliantGPON system, is sure to provide your net-work with years of profitable service.

GLOBAL MARKET AND TECHNOLOGY LEADERSHIPAlcatel is the world leader in access systemsfor both digital subscriber line (DSL) anddigital loop carrier (DLC) equipment. Withover 25 years of access deployment expe-rience and a demonstrated track record ofsuccessful broadband deployment, Alcatelremains a proven choice for carrier-gradeaccess solutions. Alcatel has designed theAlcatel 7342 ISAM FTTU system to providea future-proof all-optical access solutionthat enables service providers of all typesto offer any service mix their subscribersdemand while realizing the benefits ofincreased reliability and lower maintenanceexpenses.

Alcatel has led the industry from tech-nology innovations to standardization. It is a key member of the ITU-T and FSANstandards bodies and a major contributorto the broadband PON (BPON) and GPONstandards. Alcatel’s innovation and expertisedemonstrate commitment to delivering toour customers a long-term strategic advan-tage in their access network — the accessnetwork for the next hundred years.

21st Century Access from a Leader in Access

www.alcatel.comAlcatel and the Alcatel logo are registered trademarks of Alcatel.All other trademarks are the property of their respective owners.

Alcatel assumes no responsibility for the accuracy of the information presented, which is subject to change without notice.

© 11 2005 Alcatel. All rights reserved. 3CL 00469 0963 TQZZA Ed.01 19773