Broadband Access Options Today

Broadband Access Options Today

Jay FauschSenior Director, AlcatelFixed Networks [email protected]

Internet TelephonyConference and ExpoFebruary 5 - 7, 2003Miami, Florida

All rights reserved © 2003, AlcatelInternet Telephony, Feb 2003 – Page 2

Who’s Alcatel ?

> A $15 Billion corporation with operations in more than 130countries

> We design and develop communications networks that enablecarriers, service providers and enterprises to deliver any type ofcontent to any type of consumer, anywhere in the world

> We are the world’s leading supplier of DSL solutions

• We have been shipping DSL systems since 1994

• Over seventy DSL service providers use Alcatel DSL systems worldwide

• We have shipped over 20 million DSL lines through 3Q 2002

• We are the DSL infrastructure market share leader

– Alcatel has supplied 37.1% of the DSL ports shipped worldwide through 3Q 2002

Visit us on the web at: www.alcatel.com/access


“Broadband very likely holds the key for the longterm recovery of the telecommunications industryand for our Nation’s long term economic growthand its ability to compete on the global stage.”— Michael Powell, Chairman

Federal Communications Commission (U.S.)July 30, 2002


Broadband Access Technologies

CO-based xDSL

CO

Satellite

DLC-based integratedxDSL with POTS

FixedWireless

Fiber-to-the-User(FTTU)

2.5G/3Gmobile

Remote xDSL

HFC CableEnterprise Fiber Access(P-P fiber, Sonet rings,DWDM, EMAN, etc.)


Digital BaseStation (DBS)

BRAS

Web HostingE-mailDHCPDNS

BorderRouter

ATM

7390 NTInternetBackbone

Wireless

> First mile, line of sight radio links over distances of up to10 km/6 miles in 10 GHz and 5 km/3 miles above 24 GHz

> A single base station supports up to several thousand users

> Rates of up to 10 Mb/s allocated dynamically on demandto each end user

7390 NT

7390 NT


TerminalSOHO

RASGatewayEarth Station

SME TerminalRouter

Cache

Corporate

TerminalRouter

Cache

ManagementPlatform

(proxy AAA)

MasterCache

IP

PSTN

Hub

Content MMcall server

VoIP Gateway

AccessNetwork

CPE Satcom Networking

Satellite Two-Way Access

> Two way satellitebroadband access

> Multimedia servicesover Geostationarybent pipe satellites

> Forward link data rate(gateway to terminal)up to 65 Mb/s

> Return link data rates(terminal to gateway)from 144 kb/s to2.048 Mb/s

> Extend reach virtuallyeverywhere


BPON - Fiber to the User

VoiceSwitch

> Voice, data and video for 32 subscribers over a single fiber> Coarse WDM supports three wavelengths — 1,490/1,310/1,550 nm> 622/155 Mb/s packet rate via two wavelengths> Dedicated wavelength for very high capacity Analog TV, Digital TV and HDTV formats

20 km reach

1,550 nm

622 Mb/s + Video1,490 nm

1,310 nm

Splitters

Video OpticalLine Terminal

Packet Optical Line Terminal

NMS

Central Office orRemote Terminal

FiberDistribution

PassiveOutside Plant

155 Mb/s

Active Network Interface Device


ONT

RJ-11

CoaxRJ-45

POTS

POTS

POTS

POTS

10/100Base-T

CATV or DBS

HPNA

BPON - FTTU Services

> Supports bundled services — voice, data, video• Up to four POTS systems with lifeline support• Very high speed data (10/100Base-T or HPNA interfaces)• Video

> Flexible bandwidth• More than 20 Mb/s available per subscriber on average• Higher bursting rates possible

> Supports service requirements of tomorrow• Easily accommodates emerging services• Supports service level agreements (SLAs)• Efficiently carries IP and MPEG payloads

UPS


Hybrid Fiber Coax

> Bundles of 48 fibers from head-end to distribution hubs• Fiber segment typically has 622 Mbps

> Primarily consumer, best effort service• Access to throughput is still on a first come, first served basis

> DOCSIS evolution


DSLAM

ATM or Ethernet

Corporation

Enterprise

Broadband remoteAccess server

ISP

Internet

DSL CPE

subtendedDSLAM

DSL

> Higher bit rate downstream than upstream (ADSL)• Up to 8 Mbps downstream, 800 Kbps upstream• Nearly 200 times faster than dial-up modems

> Utilizes existing telco and in-home wiring> Turns your existing standard telephone line into a high-speed

data connection• Simultaneous voice and data on a single phone line• Dedicated high-speed connection to the network• Data connection always ON


ADSL and ADSL+

ADSL+

VDSL

ADSL+ and VDSL: Extending DSL Rate and Reach

Tier 1Tier 1(1.0)

serviceservice(Mbit/s)

Tier 2Tier 2(3.5)

Tier 3Tier 3(5.5)

Tier 4Tier 4(7.5)

Tier 5Tier 5(10)

legendlegend

ADSL from CO

ADSL+ from CO

ADSL+ from remote

VDSL from remote

3 kft 6 kft 9 kft 12 kft 15 kft0 km

Tier 6Tier 6(15)

Best Reach:Best Reach:


Applications, Bandwidth, and Technology

Browsing / Radio-> 144 kbps

Music CDs160 kbps

MusicWEB Cam

½ Screen Video / PC300 - 700 kbps

News ClipsSamples

Full ScreenMPEG4 - MPEG2

700Kbps – 4.3 Mbps

Live SportsHQ TV / DVD Movie

High Resolution 4-6+ Mbps (per single ch)

Pay Per ViewOnline News

Modem ISDN ADSL ADSL+ / VDSL FTTU

E-mail56 kbps

Voice Services56 kbps - 1.5+Mbps


Broadband Access Server

DSLAMInternet

DSLCPE

DBS dish

Combination of Technologies: DBS + DSL

> Can be achieved using DSL CPEand digital base station (DBS)set-top box or a “combo box”incorporating the DBS receiverand DSL CPE

> Broadcast content from DBS

> DBS satellite dish located at theresidence

> DSL return path or combinedwith delivery of interactivecontent Backbone

Network


Broadband Access Technology Selection - Key Factors

> Availability of the service at your home or business

> Monthly cost and upfront investment

> Service’s ability to support your critical applications• Voice, data, video• Downstream and upstream bandwidth

> Service activation interval and installation effort

> ISP package (IP addresses, e-mail, server space, termcommitment, services, . . .)

> Security

> Reliability

> Availability of service bundles or packages


Availability: Worldwide Subscriber Growth

Source: Jefferies & Company, RHK, Yankee Group

Subs

crib

ers

(000

)

Total CAGR = 47%

DSL49%CAGR

Cable41%CAGR

DSL Represents Over 54 Percent of Broadband Access SubscribersToday and is Growing Faster than the Aggregate

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

2001 2002 2003 2004 2005

DSLCableSatelliteFWAFTTU/Other


DSL vs. Cable: Regional Breakdown

> DSL is the leading broadband access technology worldwide,and in every region except North America

Source: Jefferies & Company

2002 2005

Sub s

crib

ers

(Mil)

0

20

40

60

80

100

120

DSL Cable DSL Cable

ROWAsia PacificWestern EuropeNorth America


The Big Picture - USA Residential

0

20000

40000

60000

80000

100000

120000

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Hom

es /

Subs

(00

0)

Total Households

Internet Households

Broadband Subs

DSL Subscribers

Source: Morgan Stanley Dean Witter

DSL Subscribers

> Main driver is number of internet connected PC households


DSL Subscriber Adds by Major North American Telcos

18783

150 146 183 213 226

180

120

135225 150

150 155

88

78

82

158

108 74121

56

54

71

63

96

132

10993

4121

2132

31

43

0

100

200

300

400

500

600

700

800

Q1 200

1Q2 2

001

Q3 200

1Q4 2

001

Q1 200

2Q2 2

002

Q3 200

2Bell CanadaQwestBellSouthVerizonSBC

Source: Company reports

Subs

crib

ers

Add

ed (0

00)


US Cable Infrastructure as of 3Q02

> Basic cable passes a high percentage of homes in the US

> Nearly 60 million basic cable subscribers• Losing subscribers to DBS providers

> Digital cable required for high speed internet (cable modem)


US Cable Modem Subscribers by MSO as of 3Q02


Broadband Access Subscriber Growth - US

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

Covad 319

Broadwing 45

Qwest 306

Verizon 720

SBC 954

BellSouth 303

Time Warner 1,18

RCN 76

Mediacom 16

Insight Communications 63

GCI 19

Cox 587

Comcast 542

Charter 343

Cablevision Systems 304

AT&T 1,28

Adelphia 197

1Q0

1Q01 2Q01 3Q01 4Q01 1Q02 2Q02 3Q02


Broadband Service Availability - The Bottom Line

> Wireless, satellite, and FTTU not widely available today> In the US, cable modem service is more likely to be

available than DSL• Significant local differences exist, however

> DSL’s worldwide leadership is an advantage> Cable vs. DSL in the US - The Regulatory Effect

• Cable operators are not faced with the same unbundlingrequirements as the telcos

• ILECs serve over 95% of U.S. households, whereas cableoperators serve about 60%

• Nevertheless, cable operators have more than twice as manycable modems in service as telcos do DSL


BellSouth DSL Service


Verizon DSL Service

Residential Business


Cable Modem Service Example


EarthLink Satellite Service


Cable or DSL? It all depends on who you ask . . .


Broadbandbuyer.com Assessment


Summary - Residential User View

Wireless Satellite FTTU Cable DSLAvailability + +++ - ++ ++Upfrontcost -- --- ? + +Monthlycost -- --- ? - -Voicecapability + -- ++ + +++Datacapability + + +++ ++ ++Videocapability - +++ +++ +++ +Installationeffort - - - + +++Security - ? ++ - +


Wireless Satellite FTTU Cable DSLAvailability

Upfrontcost ?Monthlycost ?VoicecapabilityDatacapabilityVideocapabilityInstallationeffortSecurity ?

Summary - Residential User View


Thank You!Thank You!Thank You!Thank You!

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Broadband Access Options Today