[Presentation] GPON vs EPON

HUAWEI TECHNOLOGIES CO., LTD.Page 1

HUAWEI TECHNOLOGIES CO., LTD.

www.huawei.com

EPON vs GPON

http://www.huawei.com

HUAWEI TECHNOLOGIES CO., LTD. Page 2

EPON vs GPON

Economics Analysis of EPON and GPON

Agenda


EPON vs GPON in Technologies

FSAN and ITU-TNot DefinedInteroperation

AES (mandatory)Not DefinedSecurity

PL OAM and OMCIEthernet OAM (plus optional SNMP)OAM&P

1:64/1:1281:32/1:16Max Splitting Rate

20km10km/20kmMax Transmission Distance

TDM over IP/ TDM over ATM/ TDM over GEMTDM Over IPTDM Support

0.930.72Bandwidth Efficiency

2300M900MDS

1160M760MUSEfficient Bandwidth (bps)

ATM/GEMEthernetLayer 2

NRZ8B/10B Line CodeProtocol

2500M1250M DS

1250M1250M USMax Bandwidth (bps)

GPONEPONTechnology

• GPON is better than EPON in bandwidth , encapsulation efficiency, multi-service support, splitting rate and OAM• GPON is more suitable in telecom networks which care about operation and maintenance, interoperation,

security and so on.


EPON GPON

TCP+UDP etc.

IP

Ethernet

PON-PHY

TDME1

Voice

Video

Data

VoIP

AES (Optional)

AAL1/AAL2 AAL5

GEM Frame

PON-PHY

TDME1

Voice

Video

Data

VoIP

AES (Mandatory)

GPON with Better Support of Multi-service and Higher Efficiency

• EPON is introduced by IEEE based on modified MAC and RS sub-layer Ethernet technology, EPON technology is quite simple and similar with standard LAN switch in service carrying structure and suitable for pure data transmission.

• The ranging , time recovery and synchronization requirement of EPON is lower , so the optical module and CDR device is cheaper , but which also cause higher overhead redundancy required.

• EPON adopts 8B/10B coding which cause 20% efficiency loss in physical layer, while GPON uses NRZ coding without loss


Defined by equipment providerDefinedManagement and

maintenance

Defined by equipment providerDefinedSecurity

Defined by equipment providerDefinedNetwork delay

Defined by equipment providerDefinedQoS

DefinedDefinedCoverage area

DefinedDefinedWavelength

Popular Ethernet equipment providerTechnical specification of equipment driven and

approved by telecom operators

Operating method

The last kilometer Ethernet of EFMFSAN: Full-service support FSANObject

EPONGPON

GPON with More Complete Standard

• GPON standard defined by operators with more complete consideration in telecom service .• EPON standard is defined by some of the equipment providers. The standard focuses on physical specification

and needs subsequent definition by other equipment providers, with cause difficulties in interoperation.


GPON with More Mature Industrial Chain

• Mainstream Chip Producer has devoted to GPON, such as BRCM, CTLM, Broadlight.

• Mainstream broadband access equipment producer has devoted to GPON, such as Huawei, Alcatel, Siemens, Ericsson, Motorola, Lucent Hitachi and so on .

• GPON gets widely support from global TOP operators including RBOCs, BT, FT, TI, Telefonica, Etisalat, Telmex, Singtel , Telstra;

• FSAN fully supports and organizes the interoperability test and authentication:

– Physical interoperability test in May 2006

– Service interoperability test in September 2006


GPON -- Choice of Global Mainstream Operators

EPONNTTJapan

GPONTelstraAustralia

2006Q3 GPONTelecomSingtel

GPONTelmexMexico

2006Q2 GPONTLATAM (Telefonica LA)Pan-Latin-America

2006Q3GPONEtisalatthe United Arab Emirates

2006Q2 GPONTelefonicaSpain

GPONTIItaly

P2P/GPONKPNNetherlands

GPONFTFrance

GPONBTUK

2006Q3 GPONSBCUS

2006Q3 GPONSouth Bell US

2006Q3 GPONVerizonUS

Tender TimeChosen technologyOperatorCountry/Region


EPON vs GPON

Economics Analysis of EPON and GPON

Agenda


GPON vs EPON Cost Analysis

•Assumption: •Comparison between EPON and GPON CO equipment and ONT only , ODN is supposed equalized in cost although splitting ratio might be different.•Cost of EPON and GPON Equipment and ONT

EPON OLT=GPON OLT=1800 USEPON ONT=GPON ONT=100 US

Note: GPON OLT and ONT price surely are higher than EPON , but so far there is no commercialized reference price, so here it is just supposed they are equal and let’s see what will happen

•Application Scenario: •10000 FTTH users •100% line bandwidth loading

10km64230093%12502500GPON

10km3290072%12501250EPON

Transmission Distance

Splitting RateDS Efficient BW (Mbps)DS Efficiency

US bandwidth (Mbps)

DS bandwidth (Mbps)

Efficient Bandwidth

10000 Subs

ONTOLT

GPON/EPON


GPON vs EPON in OLT Price

•Figure 1 Total equipment and terminal cost •Figure 2 Cost per subscriber

The following figure shows the cost difference of EPON and GPON , figure 1 is for total cost of network equipment, figure 2 is for cost per subscriber

• GPON cost advantages are from the reduction of OLT Qty, because GPON has higher DS bandwidth , splitting rate and bandwidth efficiency


GPON vs EPON in ONT Price Sensitivity

2.6 2.5 2.5 2.7 2.5 2.6 2.6 2.1 2.0 2.0 Qty comparison Ratio (1: )

435400358313264218176157157157GPON OLT Qty

11121000910834667556455334313313EPON OLT Qty

100908070605040302010BW/Subscriber (Mbps)

•Table 1 EPON and GPON implementation

Indicated by following table the comparison of EPON and GPON implementation, GPON can obtain Qty advantage by 1:2.6, which also means 1.2 million US saving.

• Considering the GPON OLT saving, the GPON ONT cost sensitivity could be calculated , then applied to the ONTs in the networks.

• For example , in case 100 Mbps per subscriber , 1.2 million US saving could be distributed into 10000 ONTs , then to equalize the cost difference of EPON ONT and GPON ONT.


How much can GPON Price Higher than EPON

•Figure 3 GPON ONT Mark up

According previous calculation , It could be obtained how much can GPON equipment price higher than EPON. The following figures shows the GPON price sensitivity (mark up part) compared with EPON:

• It is indicated in the same network situation , GPON ONT can bear 120 US higher per subscriber (could reach to 220 US, or 120% higher)

• GPON OLT can bear 4500 US higher than EPON per site

•Figure 4 GPON OLT Mark up


Summary

• EPON equipment unit price is low due to its easy way technology realization and lower requirement of optical device.

• But from previous analysis , it is clearly indicated GPON possess of very cost effective in a concept of whole network , especially in large scale and high bandwidth per subscriber FTTH network, which owe to GPON’s higher splitting rate, max bandwidth and efficient bandwidth , those advantages lead to half reduction of OLT qty.

• Less OLT means less site space and power consumption , besides the equipment life circle cost could also be reduced.


Thank you！

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[Presentation] GPON vs EPON