Jan Helge Hogvoll

Attacking the competitive Norwegian FTTH-

market with GPON –

Telenor strategy and experience so far

Project Manager, Jan Helge Høgvoll

Optical Networks, Technology, Telenor Norway

FTTH Council Europe Conference

24th-25th February 2010, Lisbon

- Telenor -A global provider of telecommunications

services

* 1

00 %

fig

ure

s -

all c

om

panie

s p

er

Q2 2

009

14 Countries

172 M mobile subscribers(*)

Fixed Service Customers in the Nordics

Broadband 1,7 M

Telephony 1,9 M

Broadcast 2,0 M

Mobile 7,0 M

A leading Nordic position in

mobile, broadband

and TV services

Agenda

• Market situation in Norway

– Why enter the FTTH segment

• Services and status on fibre roll-out

• Technical solution

• Outside plant – New solutions

• Challenges

• Conclusion

Content

Status FTTH september 2009

• Norway has the largest number of subscribers on FTTH in Europe(*)

• Telenor – so far a small player within FTTH in Norway

– Appr. 7000 customers EOY 2009

Source: FTTH Council Europe

(*) Sverige – Large amount of FTTB

Regulations in Norway

• Cu:

– LLU and Sub-loop LLU

– Telenor also offers:

– Wholesale IP

– Wholesale DSL

• Coax:

– No regulatory unbundling or demands for opening up networks

• Fibre:

– No regulatory unbundling or demands for opening up networks

Competition in Norway

Fixed Telephony

0

500000

1000000

1500000

2000000

2500000

H10

1

H10

2

H10

3

H10

4

H10

5

H10

6

H10

7

H10

8

H10

9

# o

f s

ub

sc

rib

ers

Cable/Other

VoIP

PSTN/ISDN

Internet Access

0 %

10 %

20 %

30 %

40 %

50 %

60 %

70 %

80 %

90 %

1H05 1H06 1H07 1H08 1H09

Other

Cable

Fiber

xDSL Source:

Norwegian Post and

Telecommunications Authority

Television

7 %10 %

35 %

47 %

Fiber

DTT

Sattellite

Cable TV

The choice of fiber

In the Norwegian market a winning concept is 3 play over FTTH. Whether there is a need for broadband bandwidth or not – the customer wants fibre

In the Norwegian market competitors offer some of the best 3 Play solutions in the world

Telenor responds this competition with 3 Play:

- Docsis 3.0 in areas where Cable TV network easily can be upgraded

- VDSL2 in selected areas

- FTTH in areas where upgrade of infrastructure is necessary and in selected areas. Take rate is key.



– Which services do we sell?



• Challenges

• Conclusion

Broadband services over fibre (FTTH)

– In the ramp-up phase Telenor has sold FTTH with Broadband and IP-Telephony.

– First customer established 4Q/08

– Sale of IPTV started this week, pilot test for several weeks in live network

Capacity for IPTV not included in this capacity

Technical solution scales to significantly higher capacities and potentially to address other markets.

Fibre Based Internet Access Services

€55

€68

€173





• Challenges

• Conclusion

Telenor’s choice of GPON

• Telenor’s strategic choice

– Use of fibre in the access network

• Possibilities with GPON

– Reuse of infrastructure

– Lower OPEX

– Possible capacity for customer - upto 1Gbit/s

• Standardised solution - ITU-T

– Increasing volumes gives technological development and cost reductions

– Future proof

Optical splitter

Upto 7168 cust/ rack

Telenors broadband platforms

• Same CPE-equipment for all accesses

– Remote Gateway – RG

– Set Top Box – STB

• Same concept for the service independent of the physical access

– Simpler development of new services

– ”Any service, any port”

• Simpler logistics

Home Network

ONT

RG

TEL

PC

STB

TV

RG

TEL

PC

STB

TV

RG

TEL

PC

WiMax

IP net

ONT

RG

TEL

PC

STB

TV

Example of a home cabinet solution in customer’s home

http://images.google.no/imgres?imgurl=http://www.pcverkstaden.no/computer.gif&imgrefurl=http://www.pcverkstaden.no/&h=330&w=329&sz=11&hl=no&start=54&um=1&tbnid=pX1TWe2bVuROWM:&tbnh=119&tbnw=119&prev=/images%3Fq%3Dcomputer%26start%3D36%26ndsp%3D18%26svnum%3D10%26um%3D1%26hl%3Dno%26sa%3DN

http://www.nettdata.no/catalog/product_info.php?manufacturers_id=20&products_id=1798&osCsid=ff7867ffb5b94d11bf419b23de8c2696






How does IPTV influence the need for capacity in the network ? – A first indication/example

• Traffic on ” a few” pilot users of IPTV approx 500 HSI customers on OLT

– In busy hour, most of the traffic is multicast

– Upto 5x cap. In Busy Hour compared to DSL

– Symmetric capacity compared to DSL

• A lot of capacity for further growth with GPON technology

No TV – OLT1 Incl. TV – OLT2

8 km 15 km 20 km0 km

12 km

1:641:32

CO

RU

1:32

Marginal

RU

RU

RU

Network structures – OLT Node Plan

• Pro-active planning of OLTs for FTTH

• Purpose

– Case study – challenge traditional Cu-based planning

– Build competence on fibre planning

– Create target network

– Create tools and databases for Sales & Planning





• Challenges

• Conclusion

Sub ducts in existing ducts

New aerial

solutions

New cabinets

Micro trenching

Micro ducts

New documentation system, interfacing old systems





• Challenges

• Conclusion

Challenges Sales first – then build

•Plan •Build •Deliver•Sell•Choose area

All processes must be revised, all information flow is altered

~ 160 competitors

ONT

RG

TEL

PC

STB

TV Many new boxes with new services handled in several new and legacy process and information systems

New techniques and components,

this is not copper!

Ethernet based Home Networks, QoS, WAF?

Many local competitors



Challenges

- How will the regulatory framework evolve?

- Broadband vs. Super broadband

- GPON

- Interoperability between vendors of OLT and ONT.

- Co-existence between NG-PON and GPON in the same PON

- Significant cost reductions in technology and infrastructure solutions for FTTH.

- Cooperative housing/High rise buildings

- Public willingness to try out new solutions

- Take rate is essential for the Business Case



• Technical solution and network design

• Infrastructure – New solutions

• Challenges

• Conclusion

Conclusion

• Significant competition between service providers of broadband and 3P-solutions

– In Norway in particular, within FTTH

• Telenor has established the technology, systems, processes and competence to deliver FTTH

– We are now at the start of next generation infrastructure

• Need for a continous improvement of technology, cost reduction and competence within fibre in the time to come

We’re here to help!