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All Rights Reserved NTT 2009

FTTH technologies in the NTT Network~ over 20 years experience ~

November 18, 2009

NTT AS-Labs.

Makoto Tsubokawa

DigiWorld Summit 09, Montpellier


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All Rights Reserved NTT 2009 2

Outline

1. Overview of broadband service and FTTH networks

2. NTTs progress on FTTH technologies

3. Enhance services to accelerate FTTH

4. Next generation access systems

5. Summary


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BB topics in Japan

Telephony

Cellular 113 mil. > POTS+ISDN 46 mil. > IP tel. 21 mil.

Broadband users* (ADSL+FTTH**+Cable+FWA) 31 mil. Penetration 60%. Coverage*** 99%

FTTX users 16 mil. 50% of BB users. Coverage 90% (National target 90% by 2010)NTTs FTTX 12 mil. (NTTs target 20mil. by 2010)

NTTs NGN (All-IP network platform with QoS, security and reliability)Launched in Mar. 2008. (NTTs target: coverage 100% by 2010)

Reference: Announcement from Japanese Ministryof Internal Affairs & Communications

As of June 2009 * :Access speed >30 Mb/s, **: Include FTTB+VDSL***: Households covered


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SBB 13.7%

KDDI 3.7%

e-Access 8.1%

Total

DSL

FTTH

CableTV

30.9 mil

15.9 mil

10.8 mil

4.2 mil

09.0605.03 08.03 09.0605.03 08.03

Broadband subscribers BB market share (total)

As of June 2009, total broadband subscribers is ~31 mil. (FTTH ~51%).

NTT east and west have 50 % market share.

Reference: MICs news release

Broadband market in Japan

Softbank-BB has~40% of DSLmarket share

YearYear

Number %

NTT West22.6%

NTT East28%


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FTTX subscribers FTTX market share (total)15.9 mil

Total

Single house+business

MDU(Apartment house)

6.6 mil.

9.3 mil.

Power co.

11.8%

KDDI 7.4%

09.0604.03 08.03

FTTX market in Japan

As of June 2009, total FTTX subscribers is ~16 mil. (MDUs ~42%).

NTT east and west have 74 % market share.

09.0604.03 08.03

NTT West32.2%

NTT East42%

Reference: MICs news releaseYear

Year

Number %


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Unbundle charge

Customer

premises

NCCRouter

Local office Transit Office

\4610/fiber/month

NCCRouter

FTM CTFCTF

POI: Point of Interface

FTM: Fiber Termination ModuleCTF: Cable Termination FrameRate: 1 = \135

(~ 34 /fiber)

\1368/fiber-m-month

(~ 10 /fiber-m-month)

Subscriber loop

Optical fiber Optical fiber

Trunk cable

In the case of NTT-East

Reference: NTT-Easts news release

POI


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Access charge

Customerpremises

\408

(~ 31)

8way-opticalsplitter

In the case of NTT-EastAccess speed 1Gb/s (max)Rate: 1 =135 yen

Reference: NTT-Easts news release

ONU

4way-opticalsplitterOptical

fiber

NCCNW

\4240 \790 \4016/OSU

(~ 6) (~ 30)(~ 3 euro)

\9454

(~ 70)

Total

OSU

OLT



Network configuration

NTT provides triple play services on one fiber.

- IP-based services; Internet access, IP-TV, Telephone (high quality VoIP)- Multi-channel RF-video distribution (RF-TV)

RouterVoIP-TA

ONU

STB

UNI

GE-PON

IP videoproviders

ISPs

High

SpeedInternet

IP-TV

Phone

(VoIP)

Internet

Powersplitter

Servicemultiplexed UNI

OLT

V-OLTRF-TV(=SatelliteBroadcasting)

Distributionnetwork

WDM system is needed only forRF-video distribution. SCM-PON

WDM WDM

SatelliteBroadcasting

company

RF

Legacy

IP-NW

NGN



Services provided by NGN

1. Optical broadband services

- FLETS Hikari Next (100, 200 Mb/s) Data + Video

2. Optical telephony services- Hikari-Denwa / Hikari-Denwa Office Type

3. Security services

- FLET'S Virus Clear v64. Services for corporate customers

-Business Ether Wide

(1M~1 Gb/s with backup line and QoS mgt.)-FLET'S VPN Gate

5. Services for content providers- FLET'S Cast (Content delivery service for IPv6 users)

- Services for digital terrestrial television IP retransmissioncompanies

IP-TV, IP-videoincl. retransmission of TV

NGN platform services

Cloud, SaaS, VPN

Driving force?



RegionalIP-NWHikari

Denwa(VoIP)

NW

PSTNRegionalIP-NW

HikariDenwa(VoIP)

NW

NGN-NW

PSTN

Now ~2012

?

Plan for NGN convergence

NGN-NW

VoIP Data

NTT announced NGN convergence by 2012.

Migration to NGN is a hot topic.

POTS VoIP DataPOTS

v6v4&6


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2. NTTs progress on FTTHtechnologies



FTTH system development in NTT

STD

Speed (Down/UP)

Duplex

Launched

STM-PON B-PON

ITU-T G.983 series IEEE 802.3ah

GE-PON

622Mbps156Mbps 1.25GbpsWDMTCM

NTT proprietary

16Mbps

Frame ATMSTM Ethernet

1997 1997(L.L.)/2002 2004

SCM-PON, STM-PON

STM-PON (p system: for telephony)

STM-PON (for Internet access)

B-PON GE-PON

B-PON: Broadband Passive Optical NetworkGE-PON: Gigabit Ethernet Passive Optical NetworkSCM-PON: Subcarrier Multiplexing Passive Optical Network

TCM: Time Compression MultiplexingWDM: Wavelength Division

Multiplexing

Multimediatrial

1986 1994 1996 1998 2000 2002 2004 2006

Start

Research began in 1986. Various kinds of systems were

developed, and Gigabit Ether PON was deployed after 2004.

ATM orEthernet?

SS or PDS?

(P2P or PON)

DSL or Fiber?CAPEX reduction



ADSL

Take offStart

Now

200820042000 2012

Typical issues with FTTH deployment

?

Penetration

Year

Start-upReduce CapEx to offerlower tariff

Standardize G-(E)PON

2) Takeoff and surgeDeploy cost effectivenetworks (Reduce OPEX)

Increase usage rate andprolong network facilities

G-EPONSTM-PON B-PON 10G-EPON?

2008.3NGN starts



NTTs gigabit EPON system

IEEE802.3ah compliant Expanded 1000BASE-PX20 optical Interface 10/100/1000BASE-T on ONU DBA for various QoS (DBA: Dynamic Bandwidth Assignment)

Carrier-grade operation support system Authentication Downstream / Upstream AES 128bit encryption Interoperability between different vendors

ONU

OLT

2-stage splitter(Max. 32 branches)

1.49mm

1.31mm

NTT developed a carrier-grade Gigabit EPON system

and deployed it widely from 2004.


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Wiring of distribution and drop cables

-Overcrowding-difficult management

(1) Area scale: large

(2) Area scale: small

Distribution area

-not economical

(area covered by optical splitters)

(1) Drop fiber only

(2) Thin distribution cable + drop fiber

8

Distribution area configuration

Combination of two kinds of cablesincreases the splitter utilization rate.

PON architecture enable us to construct FTTH economically. A key issue ishow enhance the optical splitter utilization rate. We have optimized the rateby using a distribution rule dependent on area segmentation.

Drop fiberDrop fiber

Splitter

8 8


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1000-fibercables

Inner pipe(f29mm)

More cable in a conduit

Radius and weight arereduced by 20% and 25%

Thin 1000-core cable

Conventional cable New cable

f23mm2

9mm

Fitting parts

for 3 cables

Conduit

A conduit can accommodate3 thin 1000-fiber cables.

No civil work !


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An automatic optical fiber operations support system (AURORA) can

reduce operating costs by undertaking the remote and automatictesting of the optical access network from a maintenance center.

Maintenance center

Control terminal

Water sensor

IDM

ONUOptical fiber

cable

Fiber selectorOTM

OLTOLT

Router

Optical couplerunit

IDM-FS

Optical jumperunit

Customer premises

ONU

DCN

DB

Central office

Termination cable(with filter)

Test light

Testing orderand result

Automatic optical fiber line testing system

Easy maintenance !


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Optical cord

Reader

Terminal

LED for navigation

Connectorplug

To DBServer

Special tool with ID tag detectionfunction

Connectoradaptor

Distribution frame

ID tag1 ID tag 2

LED control panel

MU connector with ID tag

Special tool

Connector adaptorwith ID tag

By using LED navigation and ID tag of this system, operators can

connect a plug without mistake, and update DB after automaticconfirmation instantly.

IDM ( Integrated distribution module)

Size: 1800x600x1600 [mm] (HxDxW )Capacity: 4000 fibers

Optical wiring identification and management system

Fewer Errors !


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ADSL

Take offStart

Now

200820042000 2012

Current issues with FTTH deployment

?

Penetration

Year

3) Slow down ?Explore new customers

Move-up ADSL users, rural users

Provide attractive services

Multi-channel video, Game, etc.Smooth transition to NGN

Accommodate legacy servicesby NGN

G-EPONSTM-PON B-PON 10G-EPON?

2008.3NGN starts

Start-upReduce CapEx to offerlower tariff

Standardize G-(E)PON

2) Takeoff and surgeDeploy cost effectivenetworks (Reduce OPEX)

Increase usage rate andprolong network facilities


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Fiber installed in MDUs and MTUs

In Japan, MDUs account for 40% of the total, where FTTB+VDSL has

generally been used. Thin ducts and small spaces congested withcopper prevent installation of optical fibers.

ONUVDSLL2SWcopper

FTTB+VDSL/L2SW

MDF ONU

Optical splitter

Upgrade

MDF

~30 Mb/s100 Mb/s1Gb/s

FTTH

Note: Existing small MDUs with fewer than 50 units account for 90% of the total.

Tight space!

Trouble-prone!

How install?Con

gestion!


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Small diameter & low friction indoor cable

3.1mm

2.0mm

Conventional indoor cable

1.41.6mm

1.92.0mmF

F

F

F

F

Existing MDU

1 to 1indoor wiring

New indoor cable

More than20 cables

Pipe withexisting copper

Fewer than

6 cables

MeritsMost MDUs can be installedInstallation 40% fasterCO2 reduction (~80%) compared with VDSL

Downsized 50% andcoated with low frictionmaterial


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Installation of the new indoor cable


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3. Enhance servicesto accelerate FTTH


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FM signal

- Digital terrestrial broadcastretransmission ~10ch(only on NGN service menus)

- VoD incl. HD class.- Karaoke etc.

RF-TV (by WDM)IP-TV

Two ways for FTTH video service

SKY PerfecTV! ~300ch- Digital and analogueterrestrial broadcast re-

transmission- Video incl. HD class.- Karaoke etc.

Services: Services:

ONU

STB

OLT

IP videoprovidersIP multicast

IP-NW IP-NWG+V

ONU OLT

V-OLT

Videodistribution

network

Freq. [GHz]

1 2 3 4 5 6

WDM

~10 ch

~300 ch


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Feature comparison

Currently, the RF-TV system seems to have a slight lead, but IP-TV

will likely become dominant on a long term basis because of itsvarious possibilities.

RF-TV IP-TV

Capacity

(large number of broadcast channels) Sufficient

Small

(for 1G-PON)

Possibility of broadcast re-transmission No problemNeeds

consent

Compatibility with existing TV sets Compatible Need STB

Interactive service, such as VoD Impossible Possible

Copyright issue No problemLargelysolved

Network simplicity Needs WDM Simple


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Barriers for IP-TV

Basically, NTT doesnt become a broadcasting provider and also aninvestment stake of more than 3 % to such provider is prohibited: NTT Lawin Japan

An IP-TV is not regarded as a broadcasting because it is based on IPmulticast: the Copyright-ACT in Japan

IP-TV cannot provide the terrestrial TV re-broadcasting programs.(Cable TV is free of this regulation, therefore RF-TV based on the same

transmission scheme as Cable TV is also free.)

On Dec. 2006, the Copyright-Act was slightly loosened up.

Since then, IP-TV service was permitted in some service areas, but thoseareas have been a few yet. So, NTT is now promoting IP-TV depending onsuch circumstance.

As regards broadcasting service,


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Rural/Isolatedisland

Splitter

OLT

Urbanareas

OLT

Long distance

More ONUs

2008.2 ITU-T G.984.6(PON Extender Box)

Area extension using long-reach PON

FTTH deployment in rural areas can be achieved by installing burst-

mode optical amplifiers. However, serious issues such as costefficiency still remain, so cooperation with local governments isconsidered the trigger.

CO

40~100km

~256 ways


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Since 2006, WiFi services have been available on express trains. NTT

has developed wireless link technologies, and plays a role assystem aggregator* providing ISPs with the WiFi infrastructure.

2006(Commercial)

2009(Commercial)

2009(Trial)

Tsukuba EX @Japan

Super Express @Japan

Super Express @Chinese Taipei~300 km/s

~270 km/s

~130 km/s

New market: WiFi on Train

*: NTT-BP Inc. (NTT Eastssubsidiary company).


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Data centerThe

InternetOptical fiber

Ground-train link(2.4GHz WiFi)

RelayNW

SeamlessHandove

r

Station Station

Inter-car relay link (5GHz WiFi)

Mobile Router

User access link (2.4GHz WiFi)

System Structure

25GHz wireless

ISPs

Relay

Station

Station


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4. Next generationaccess systems


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Next generation requirements

Different requirements for next and subsequent steps.

Target services ~20 HD class videos,

capacity of 0.3~1Gb/s per user

Upgradeability:

Need for smooth upgrade from existing G-EPON to NGA systems on thesame ODN. Coexistence is assumed to be a key requirement.

Next step

Subsequent step

Target services Many services with wider profile (Super HD video, broadband SaaS platform,

ubiquitous communications, etc. ----). Total capacity beyond 1 Gb/s per user.

Upgradeability: Not necessary for legacy networks. New architecture desired.

Same ornew ODN?

CO


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Dataspee

d(bps)

1G

100M

10M

100G

10G

20052000 2010 2015 2020 Year1995

100BaseT

GbE

10GbE

40/100GbE

B-PON

GE-PON

G-PON

10G-EPONNG-PON1

Next

target

STM-PON

IEEE802.3 STD

2009.9

2010.5

ADSL

NG-PON2(WDM TDM Hybrid PON)

P-P

P-MP

FTTH20 mill. users10 mill.

(+ SCM-PON for video distribution)

P-P: Point to PointP-MP: Point to MultipointSCM: Subcarrier ModulationNGA: Next Generation Access

max.

min.

System deployment scenario


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Coexistence of 10G-(E)PON with 1G-EPON

10G-EPON can coexist with existing 1G-EPON, and also coexist with

asymmetric and symmetric systems simultaneously on same fiberinfrastructure.

1G/1G-MAC

1G/1G-ONU

10G/10G-MAC

10G/10G-ONU

1.49 mm

1.31 mm

1.577 mm

1.31 mm

DBA

OLT side

ONU side

1G/1G-ONU

802.3ah

802.3av

802.3av

802.3av

Migrationpaths

10G/1G-ONU

Dual-mode operation

1480

1580

l(nm)1500 15601260 1360 1550

1G UP 1G DN

10G UP

1280

video10G-EPON

G-EPON

10G DN

1574 1600

TDMA

WDM

Wavelength allocation


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Summary

Market

Moving to FTTH. NTT aims at 20 mil subscribers by 2010, but demandis slowing down

To increase demand again, videos including TV re-transmission are

expected to constitute a killer content for spreading FTTH and NGN.

Also, new markets such as move-up ADSL users or unconnected rural

users should be explored. Promotion by local governments is expected.

Since FTTH took off, NTT has developed cost effective technologies for

reducing the cost of the electronics and labor needed for deployment.

G-EPON, IP/RF video distribution system, strategic access NW planning,

Low- friction cable, Thin 1000-fiber cable, Automatic test system, etc.

As the next step, 10G-(E)PON is the most promising as a major FTTH

system. It has sufficient potential to provide currently predicted services,

and allow relatively smooth migration from the existing networks.

Technology


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Thank you.Merci.

1445 TSUBOKAWA NTT

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