OPERATOR CASE STUDY: Openreach’s FTTx Deployment

Superfast Broadband UK

Dr George Williamson

Director Strategic Network Design

Openreach

24 April 2012

Understanding how Openreach are enabling open access NGA and Super Fast

Broadband.

Evaluating the Mixed Economy Model: FTTC and FTTP

Enhancing cost effective coverage through Openreach’s latest fibre innovations

Determining how to broaden the range of service propositions to enable success for

communications service providers.

Contents

Openreach, LLU, Ethernet and NGA (2006 – Today)

Openreach formed in January 2006 to deliver underpinning

infrastructure under Equivalence of Input (EOI) terms for all

Stimulation of competition in higher layer network services

– Massive Non-BT LLU growth to >7m lines (from <1m) and

Wholesale Line Rental at >7m, copper growth in last 5 quarters

– Huge growth in Ethernet backhaul services at 27% CAGR.

– Enabling real network based competition

– A catalyst for industry innovation

– Underpins the biggest entertainment brands in UK

UK Broadband availability and competitiveness remains

amongst the highest in the G8

– But growing demands for increasing broadband speeds and better

quality of service

Now enabling Superfast Broadband for the industry

– Open access Ethernet bitstream model

– Next wave in Broadband investment, looking to 10m homes passed

in Spring/early Summer

What is Openreach? A reminder about us and what we have done with industry:

Creation of NGA Wholesale Open Access Model

– Scale and pace of commercial deployment

– Building on Openreach’s Equivalence Management Platform (EMP)

– The UK’s Communications Provider Eco-system

– Carrier Ethernet Solutions:

• VULA/ALA for NGA plus high capacity business Ethernet over fibre

• Openreach Handover Points

– Physical Options:

• FTTC – VDSL2

• FTTP – GPON

Part of a Broadband Mixed Economy

– Fixed and Wireless

– Exchange based DSL and NGA Fibre

– UK is one of the most mature broadband communities

Understanding how Openreach is enabling open access

NGA and Superfast Broadband.

Ethernet to enable Physical Media Independence

– FTTC VDSL2

– FTTP GPON

Criticality of Scale and Pace in our Market Model

– Global experience suggests NGA take-up grows steadily and take-up is partial

• Overlay model for now

– FTTC enables rapid deployment and speedy provision

– VDSL2 performance improvements

• ANFP changes to enable – up to 80Mb/s

– FTTP where cost case is compelling

• New sites, MDU (a relatively small % in UK), low cost deployments

– FTTP Fibre on Demand in FTTC areas

• To enable high demand clusters and 300Mb/s service rates

Evaluating the Mixed Economy Model: FTTC and FTTP

Openreach has enabled a very rapid commercial deployment to the denser parts of

the UK.

– Based on standard scale, solutions

Final third premises are significantly more challenging

Openreach’s equal access model will enable consumer choice in final third where

funding, e.g. BDUK, can close the gap to the commercial case

We have innovated and will continue to innovate to address a more sparse footprint

– No one size fits all:

• Longer reach

• High cost backhaul – wireless to the cabinet

• Solution options for rural e.g. aerial cable options

• Community dig

• Copper rearrangement to create new injection points

• RDSLAM cabinet options e.g. All-in-one

• WTTP e.g. Trials of TVWS, Wifi, 3G/4G, ...

Enhancing cost effective coverage through Openreach’s

latest fibre innovations

With footprint we expect the industry to start to drive take-up

– Value and life enhancing applications are the key

– We expect these to be video rich, supporting multiple concurrent users and growth in use of

upload

– Usability and ease of access are fundamental

We have enhanced our offerings and our services.

– Multi-cast to enable linear TV

– Quality of Service and SLAs

– FVA enables voice access in a fibre only world

• Open Access telephony

– We are starting the debate with industry on connected home.

Wireless edge to NGA

– Will support millions of Wifi access points, ...

– Trialling small cells and TV white space

Determining how to broaden the range of service

propositions to enable success for communications

service providers.

Developing the Access Network Vision

An enabling framework for Openreach and industry innovation

CP Service

Interconnect to

migrate to

Openreach

Handover Points

Not just about Access: Broadening the Network

Vision

OSA

EAD

GEA

PIA SLU,PIA

WLR, SMPF,FMPF, PIA,BET

Cablelink

Finally – in Olympic Year

Finally – in Olympic Year

80,000 connections across 96 locations

5,500km of internal cabling

Up to 60Gb of information carried each second

1,800 wireless access points

16,500 telephone lines

14,000 mobile

SIM cards

10,000 cable

TV outlets

642,000 man-hours

Finally – in Olympic Year