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Fiber Access NetworksFiber Access Networksandand
The GPON StandardThe GPON Standard
David ClearyVP, Advanced [email protected]
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Meeting Overview
AgendaThe Need for Fiber Access
The Choices of Access Networks
The GPON Standard
The Market Opportunities for GPON
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Meeting Overview
AgendaThe Need for Fiber Access
The Choices of Access Networks
The GPON Standard
The Market Opportunities for GPON
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The Need for Fiber Access
It’s all about Bandwidth!!!Video will drive Bandwidth for the foreseeable future
Bandwidth usage doubles every 18 to 24 months
MPEG4 offers some relief (18 to 24 months?)
How Much Bandwidth is enough?Probably more than you think.
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The Need for Fiber Access
What is special about Fiber Access?Fiber is fundamentally different from copper
We are at the limit for bandwidth over copper Double the bandwidth and halve the reach
We are decades away from any limitations on fiber We are at 2.4 Gbps today Fiber can support over 100 Terabits per second without reducing
the reach
Eventually, every operator will deploy fiber...
It’s just a matter of time
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Meeting Overview
AgendaThe Need for Fiber Access
The Choices of Access Networks
The GPON Standard
The Market Opportunities for GPON
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The Choices for Fiber Access
There are 2 choices for Fiber Access:Point to Point
Point to Multi-point
Point to Point is sometimes called Active Ethernet
Point to Multi-point is called PON (passive optical network)
PassiveSplitters
ONT#192ONT #1ONT #1ONT #1ONT #1
...
PONOLT
ActiveEthernetSwitch
ONU#192ONT #1ONT #1ONT #1ONU #1
...
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The Choices for Fiber Access
PassiveSplitters
ONT#192ONT #1ONT #1ONT #1ONT #1
...
PONOLT
ActiveEthernetSwitch
ONU#192ONT #1ONT #1ONT #1ONU #1
...
PON is analogous to wireless telephony (cellular)
Active Ethernet is analogous to wireline telephony
Both CapEx and OpEx cost savings favor PON
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Meeting Overview
AgendaThe Need for Fiber Access
The Choices of Access Networks
The GPON Standard
The Market Opportunities for GPON
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The Challenge
Low Volume
Small Customer pool
High customer influence
Edge/Core Network
Equipment
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The Challenge
High Volume
Enormous Customer pool
Low customer influence
Consumer
Equipment
Edge/Core Network
Equipment
Low Volume
Small Customer pool
High customer influence
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The Challenge
Consumer
Equipment
High Volume
Small Customer pool
High Customers influence is desired
Edge/Core Network
Equipment
Access Network
Equipment
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Developing the Standard
The first step to writing a standard is to choose the Standards Body
The 2 primary players for networking standards are: IEEE (Institute of Electrical and Electronics Engineers)
ITU (International Telecommunications Union)
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The IEEE
IEEE well known Protocols802.3 Ethernet
802.11 WiFi
802.16 WiMAX
IEEE Membership is diverseSystem vendors, chip vendors, optics vendors, industry cunsultants and academia
IEEE VotingEach member gets one vote
No limit to the number of votes from a given company
“Personality” of IEEE standards reflect interests of VendorsOften leads to low-cost solution
Often only hits 80% of market
Often doesn’t produce migration strategy
IEEE standards don’t necessarily reflect Operator Preferences
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The ITU
ITU well known ProtocolsSDH
V 5.2
ISDN
VoIP protocols H.248 and H.323
ITU MembershipMembership controlled by ITU Member-Countries
Membership open to Operators, Institutions, and Vendors
ITU VotingVoting is through consent
Each company get one vote
Companies can object (but can’t stall process)
“Personality” of ITU standards reflect interests of OperatorsAddresses the operator requirements
Addresses the operator constraints
Addresses the service provider’s operational models
Not focused solely on low cost
Duration of Standardization Process relatively short
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The ITU and FSAN
In the late 1990’s a “Clandestine” group of operators was formed:
Objective: “Global Domination of the Fiber Access Market”
The group called itself FSAN
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The FSAN Committee
FSAN stands for Full Service Access Network
Loosely affiliated with the ITU
Develops all PON standards prior to submission to the ITU
FSAN membership consists of both operators and vendors
But operators make all final decisions
Membership of vendors is tightly controlled by FSAN Operators
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NTT
KT
SingTel
Telstra
BellSouth
Bell Canada
AT&T
VerizonQwest
ChunghwaBezeq
FT
BT
DTAG
TI
Eirecom
KPN
Telia
Malta
Telefonica
SwissCom
FSAN Operators represent a world-wide membership
TelusKuwait MOC
Sprint
The FSAN Operators
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FSAN OAN-WG membersFSAN OAN-WG members
OperatorsAT&TBell CanadaBellSouthBritish TelecomDeutsche Telekom France TelecomKorea TelecomKuwait MOCNTTQWESTSprintTelecom ItaliaTelstraTelusVerizon
VendorsAdtran LucentAlcatel MitsubishiAlphion MotorolaBroadLight NECCalix NortelConexant Novera OpticsECI Telecom OFN / OkiEntrisphere LG ElectronicsFlexLight Optical Zonu Freescale SamsungFujitsu SiemensHitachi TellabsHuawei TerawaveIamba Vitesse Infineon ZTE
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Meeting Overview
AgendaThe Need for Fiber Access
The Choices of Access Networks
The GPON Standard
The Market Opportunities for GPON
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The Market Opportunities for GPON
There are Numerous Market Opportunities for GPONLower OpEx
Greater Service Offering
Future-proof investment
The real question is When and Where does it make economic sense to deploy GPON
The quickest application appears to be the Developer Market and ‘Smart FTTH’ Communities
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Total U.S. Homes Served by FTTH
322,700
1,335,000
1,011,000
671,000
213,000146,500
78,00064,700
38,00022,50010,3505,5000
500,000
1,000,000
1,500,000
Sep-0
1M
ar-0
2Sep
-02
Mar
-03
Sep-0
3M
ar-0
4Sep
-04
Mar
-05
Sep-0
5M
ar-0
6Sep
-06
Mar
-07
Source: 2007 RVA
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138,500
78,000
453,000
376,000
241,000
188,700
5,500 10,35022,500
38,00064,700
174,000
0
100,000
200,000
300,000
400,000
500,000
600,000
Source: 2007 RVA
Homes Served by FTTH by Non-Verizon Service Providers
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436,000
882,000
0 200000 400000 600000 800000 1000000 1200000
RBOCs
All Other ServiceProviders
Breakdown of Homes Served:RBOC versus Non-RBOC FTTH
Source: 2007 RVA
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0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
2004 2005 2006 2007 2008 2009
BPON
GPON
EPON/GePon
Active/P2P
FTTH Homes Marketed By Architecture
Note: 2006 Forecast (2007 Forecast not yet available)
Source: 2006 RVA
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Competing for Developers
New home developments have become the fastest growth Fiber-to-the-Home market
Master planned communities
Multi-tenant buildings
Resort communities
New service providers (developer integrators) are competing in this market against incumbents
Innovative and fast moving companies
Strong IP and project management experience
Strong ties to the developer and builder community
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Overview of the Developer Market
FTTH is now highly desired by Developers
FTTH communities are most prevalent in:West Coast (California, Las Vegas)Southeast (Florida, etc.)
U.S. integrators expanding intoCaribbeanLatin America
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U.S. Developer FTTP Market Size
1.5 million new homes per year are built in U.S. Source: U.S. Department of Commerce
50% are managed by Associations Source: U.S. Housing Census.
Half of these communities will deploy FTTP
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Who is the Competition?
Over 50 companies are now acting as developer integrators in the United States and the Caribbean
Many have formed partnerships with specific developers for all their projects
Many companies specialize in security or ISPs
Very low overhead organizations
In most cases these integrators out source one or more of their services
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Why Developers Choose Integrators
Developers want recurring revenue streams
Incumbents are perceived as unwilling to share revenue with developer
Incumbent telcos are seen as inflexible
Incumbents are perceived as not delivering newer service offerings
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What is Required to Compete?
Minimal requirementsFiber-to-the-Premise architecture
Diverse video channel selection (IPTV or RF) News, movies, sports, etc
Voice (TDM or VOIP)
High speed internet 10 Mb+
Additional offeringsHome networking and support
Security systems
Video on demand
Community/member web site
Video doorman and camera integration
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Closing remarks
ICT Infrastructures are best delivered with GPON and FTTH technologies
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The Power of SimplicityThe Power of Simplicity