Perfect Storm: Fiber based Broadband Session 1/D… · GPON OLT DLC COT GPON Feeder Fibre 20Km from...
Transcript of Perfect Storm: Fiber based Broadband Session 1/D… · GPON OLT DLC COT GPON Feeder Fibre 20Km from...
Perfect Storm: Fiber based Broadband
Dr. Bharat P. Dave
Chairman, President, and CEO
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Connecting Everyone Everywheretm
2
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Scope
• Fiber based Broadband Highways: Drivers
• State of Optical Broadband
• Deployment Momentum
• FTTX Technology: Global Choice
• Indian Perspective:
• Opportunities, Challenges
3
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Perfect Storm for Fiber based Broadand Highways
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Government
Initiatives
Growing
Economy
Favorable
Population
Dynamics
Applications
Technology
IOT
Adoption
Mobile
Backhaul
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Broadband Highways: Motivation
• Broadband for All: Urban + Rural Digitisation• National Information Infrastructure• Smart Cities• Large opportunity for Businesses
• Banks, Ecommerce, Education Institutes, Hospitals, Telecom and Mobile Vendors, Infrastructure Companies, …
• What is there for Common People?• Internet: Central Communication Platform• Socio-economic Hub• Educated, Informed and therefore Empowered Citizens
EMPOWERMENT
EMPOWERMENT BY DIGITISATION
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Optical Broadband Access is a Disruptor
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• Optical technology in the access network is much more disruptive
• Tremendous growth in Speed compared to Copper, HFC, and Wireless Technologies
• Provides optimal backhaul for 3G/4G/5G/WiFINetworks
• Enables Gigabit end-to-end optical communication between Broadband Access users.
FACILITATES REAL TIME ACCESS
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… that makes Over The Top (OTT) even
more compelling…
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…which is already growing in leaps and bounds
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•NETFLIX has over a petabyte of content with subscribers in over 50 countries with 118 Million+ subscribers. •YouTube has 1Billion+ users, 6 Billion hours of video watched per month.•Facebook is a social network 2.2 billion monthly active users. •Twitch is a video game oriented, live streaming platform recently purchased by Amazon, with over 9.7 Million daily active users and over 2 Million broadcast streams per month. •Instagram has more than 1 Billion monthly active users •DropBox has over 500 million users, with over 1.2 Billion files uploaded daily, with over 100,000 new shared folders and links per hour.…and it is only really just the beginning.
Source: Netflix: https://www.comparitech.com/blog/vpn-privacy/netflix-statistics-facts-figures/#gref
YT: https://www.businessinsider.com/youtube-user-statistics-2018-5
Facebook: https://www.statista.com/statistics/264810/number-of-monthly-active-facebook-users-worldwide/
Twitch: http://mediakix.com/2017/02/top-twitch-statistics-live-streaming-game-platform/#gs.AHWG_lM
Instagram: http://expandedramblings.com/
Dropbox: http://expandedramblings.com/index.php/dropbox-statistics/
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Internet of Things (IOT) –seeding the word with IOT devices
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Image: Jon Berkeley, The Economist, ”when everything connects” cover, April.28.2007
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Internet of Things (IOT) – connecting the world around us in 2018
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IOT Devices Growth
Source: Statista 2018
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Broadband Status…
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• 5 Billion people
• To have Internet
• Access by 2020!
Source: The State of Broadband, ITU September 2018
Rank Country Subscriber per 100 Residents
1 Monaco 49.9
2 Switzerland 45.4
4 France 43.8
5 Denmark 43.2
9 South Korea 41.6
19 Hong Kong, China
35.9
23 USA 33.9
95 Jamaica 8.3
136 India 1.3
Rank Country Subscriberper 100 Residents
1 Macao, China 321.8
2 UAE 243.3
3 Kuwait 227.9
9 Japan 133.2
20 South Korea 112.8
25 Hong Kong, China
105
43 UK 88.1
50 China 83.6
146 India 25.8
Fixed Broadband Mobile Broadband
5 Billion people
To have Internet
Access by 2020!
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But with it comes the opportunity of the Digital Economy* to the users…
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•What the McKinsey &Company Report “Online and upcoming: The Internet’s impact on India” back in 2012 still holds today:
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FTTx Deployment Momentum
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Worldwide Internet Penetration
Government Initiatives
Growing economies
Favorable population dynamics
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Alphion Deployments
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Deployment in 200+ cities in India
Deployed
In
24
countries
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Access Technology Evolution
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2010 2012 2016 20182008200620041988 20142002200019981996199419921990 20201986
1Mbps
10Mbps
100Mbps
1Gbps
10Gbps
100Gbps
3G HSPDA1-2M
Modem9.6-56kbps
ADSL2
ADSL2+24M
VDSL150M
VDSL2100M
DSL1M
BPON622/155M
APON155M/51M
XG-PON110G/2.5G
NG-PON240Gbps
GEPON1G/1G
GPON2.5G/1.25G
10GEPON10G/1G
WiMAx30-40m
GSM9.6kbps
ISDN64-192kbps
4G LTE10-20M
Do
wn
link
Rat
e
3G HSPAe2-10M
3GIMT2000
W-CDMA2M
EDGE384kbps
UWB.B
1xRTTGPRS8-92kbps
802.11a2M
ADSL4M
802.11b10M
802.11g/a54M
802.11n100M
Vector
WiMAx100M
G.fast 802.11ac1.8G
802.11ad5G
DOCS1.0
DOCSIS2.0
DOCSIS3.0
DOCSIS3.14G LTEA
3--20
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PON & RAN: Optimal Technologies
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Internet ISP(s)
IPTVASP(s)
VoIPASP(s)
OTT, Storage ASP(s)
Service Core Provider Edge (PE)
& Metro
Access Area User Area
L2 AggregationMPLS and
Routing
...
MPLS Core
...
POTS/ISDN
...
XDSL
...
Carrier Ethernet
DSLAM
DLC
Ethernet
Switch
PON (GPON)
Radio Access
Network
(RAN)
...OLT Splitter
xDSL (Digital Subscriber Line)
HFC (Hybrid Fibre Coax) (not shown)
PON (Passive Optical Network)
ASP (Application Service Provider)
ISP (Internet Service Provider)
IPTV (Internet protocol TV)
OTT (Over The Top)
MPLS (Multiprotocol Label Switching)
POTS (Plain Old Telephone Service)
RAN (Radio Access Network)
2G/2.5G/3G/4G/5G
Wi-Fi
GPON ONT
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GPON is 5th Generation landline Access Technology
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1st GenerationCopper
Distribution
E1 (3 to 10km )
~5km or less from CO
DROP Cable (2 pair)
DistributionCable
(25/50/100 pairs)
DROP Cable (2 pair)
Distribution Area (DA)
2nd GenerationMetallic Pair
Gain Mux
Pair Gain Multiplexer
E1Repeater
Feeder Cable(600-3600 pairs;
typical 1200)
~4km
Digital
Analog
Lateral
DROP Cable (2 pair)
Distribution Area (DA)
DLC RFT(Remote Fibre
Terminal)
~4km orless from DLC
Analog/Digital
STM-1/4Feeder Fibre(8 to 30km)
Digital
GPONOLT
DLC COT
GPON Feeder Fibre20Km from OLT
to Subscriber ONU/ONT
3rd GenerationDigital LoopCarrier (DLC)
Digital
5th GenerationGPON OLT
4th GenerationDigital Subscriber
Loop Module (DSLAM)
Distribution Area (DA)
DROP Cable (2 pair)
DROP Fibre (1/2 fibre/home)
Splitter
SplicePoint
DistributionFibre
STM-1Feeder Fibre(8to 30km)
LE
Aggregation
~4km orless from DSLAM
MDF
OU
T
IN OU
TO
UT
Serving Area Interface (SAI)
* 2 to 5 DAs, each of which has a SAI and serves 200 to 400 homes & business lines
OU
T
IN OU
TO
UT
SAI
OU
T
IN OU
TO
UT
OU
T
IN OU
TO
UTSAI SAI
Analog/Digital
Digital
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Smart City Solutions
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Source: Mission Statement & Guidelines - Smart Cities by Ministry of Urban Development, Government of India, June 2015
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Network Architecture: NOFN-Removing Digital Divide
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Server Farm
(Type Bprotection)
2x4
splitter splitter
splitter
splitter
splitter
1x8
1x8
1x8
1x8
splitter
2x32MPLS Network
with 10/40G Capacity
40Ch. DWDM Network with
100G Capacity
GPON Access Network with
10G/1G Capacity
District Block GPState Head Quarters / NOC
splitter
2x32
Distribution Network
Internet
NOC LAN
Government Institutions
Gram Panchayat
Offices
High-rise Buildings
Vertical Buildings
Monitoring Center
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GPON Topology for Smartcity
Redundant
Ring
Topology
Star
Topology
Passive ODN
• Topology shown for AOLT-4200 with 8 PON Ports in 4 Active and 4 Standby configuration mode
• Based on 1:32 Split ratio, 32 ONTs per Protected PON Port
• Up to 128 ONTs Servicing from a POP
OLT
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Smart Pole with GPON
• Smart LED lights
• Security Surveillance
• WiFi Hotspot
• 4G Microcell
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Opportunities and Challenges
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FTTN
FTTC
FTTB
FTTH
Optical Fibers Metallic Cables
>1000ft. (300m)
<1000ft. (300m)
Poor and aged copper infrastructure
Greenfield construction boom
Lower Labor Costs Higher comparable
purchasing power parity
Favorable Public Policy
Lower ARPU
More CAPEX outlays for Wireless technologies
for faster rollout and wider reach compared to
FTTH
Right of Way
Premise Fibering
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Keys to Success (1)
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Low Cost Deployment Models
Cost per home connected is the key
metric
Lower ARPU
Reliability of network components
Watch out for the construction crew !
And the constant power cycling !!
Capacity Utilization is important in a
world of CAPEX Conservation
paradigms
If you build it, they will come – just
not that fast
Application driven growth
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Keys to Success (2)
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Open Access
It is no longer a product sale – it is
a solution sale
Ecosystems are the “in” thing
Its an “App” world – applications
sell, networks don’t
Experiment with unique business
models Revenue share – everybody needs to
put skin in the game
“Smart Wholesale” models are smart !! -
Customer Intimacy is key to higher take
rates
NGOs & Universities
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But there are additional aspects that affect Optical Access rollout
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• Backwards compatibility: Applications and Devices
• Blurring of historical lines between Telcos (xDSL) and MSOs (HFC)
• Telecom encroachment on MSO TV space, especially non-Live TV -Territorial disputes between Telco and MSOs
• ODN Plant builds – aerial vs. underground, ROW Issues
• Impact of Optical Access bandwidth on Core and Metro networks: especially with new technologies such as NFV and SDN
• Role of Network Management
• Impact of ‘Make in India’ on Manufacturer’s of the equipment
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Ring Architecture
Reliability of Access Networks
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Star Architecture
Ring Architecture
Redundant fiber paths in
subscriber access reduce
down times
Critical components need
redundancy
Higher network reliability
at lowest incremental
CAPEX and OPEX
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Low Cost Deployment Models: FTTF
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Economical FTTB Deployment
Model for High Rise Apartments
are critical Vertical Fiber and Horizontal
Copper
“Poor Man’s MDU”
Low Cost Deployment Models
are not equal to “Cheap
Products” Product Features cannot be
compromised
Frugal Engineering of products
for emerging markets can
improve margins in mature
marketsFiber To The Floor ™
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Better Capacity Utilization
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PON Extension techniques to
increase the reach of existing OLT
deployments
Increased differential reach helps
to improve take rate on each port
AOLT-4000
60Kms3x longer distance and 4x more customers per fiber
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Application Driven Subscriber Growth
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Plan Growth Strategy for FTTX
Networks Driven by Applications
Rural Subscriber Growth can be
achieved by offering basic
applications like access to the
Internet
Urban subscriber growth requires
innovative applications and is
executed with partners
FTTx Access Equipment not
be positioned as “Broadband
Pipes” but rather as
“Application Enablers”
Don’t go at it alone, take your
partners along and share the
rewards
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FTTx Synergy with Mobile Rollout
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2G BTS
3G Node B
3G Node B
4G/ LTE eNodeB
BSC
aWG
RNC
T1/E1
(Copper)
ATM
(IMA/ E1)
Mobile Core NetworkCell Site Mobile Backhaul using ODN
STM-1
ATM
STM-1ch
ODN
AOLT-4000
Ethernet
SPLITTERS
AONT-4770
AONT-4770
SPLITTERS
AONT-4700PWE3 AGGREGATOR
Mobile
Circuit
Switching
Core
Mobile
Packet
Switching
Core
Enable cost effective RAN with Ethernet for All-IP LTE/4G/5G Evolution
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Rural Fiber Deployments in India
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• India
• Population 1.3B (2016)
• 67.5% rural (820M)
• #136 for BB penetration (1.3%) (2018)
• 241M Facebook users (Jul 2017)
• 250,000 Panchayats and 600,000 villages to be connected by FTTH
Source: https://www.livemint.com/Consumer/CyEKdaltF64YycZsU72oEK/Indians-largest-
audience-country-for-Facebook-Report.html
http://www.worldometers.info/world-population/india-population/
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Changes to Business Models
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• Optical Access Networks: ‘Lightspeed’ communication
• Charging per bandwidth are not sustainable
• Operators will need to adopt the hybrid models including bits, bandwidth, and applications
• Open access networks: Net Neutrality
• Cannot reject innovations: “Customers can’t use them” vs “Optical Access Networks” are here.
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Commercial Challenges from Indian Market Standpoints
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•Commercial Factors Impacting Selections in India:
• Cost - Investment in New Fibre Infrastructure required
• Legacy Services will still need to be supported during transition
• Organizational Difficulties in supporting Multiple landline technologies
• Obsolescence of current copper Technology will require write-downs
•This is compounded by the normal inertia to change and inability to take risks.
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Make in India: Opportunities & Challenges
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• Opportunity for local OEMs
• Preferred Market Access with % of Local Value Add
• Fewer OEM companies in India: Difficult to have IP resident in India
• Lack of local fabrication facilities (fabs) for Electrical and Optical components
• Investment for Manufacturing Infrastructure
• Cost of Project Financing
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Make in India…
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• End to End
R&D, Optics
• Optical Sub
assembly
• Complete CKD
Assembly
• Clearnoom for
Optical Component
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Broadband Highways: Paradise for Innovations
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• Gigabit to the Cloud
• Enterprise Cloud
• Storage data centers driver: Opportunity for ‘Store in India’
• Renewable energy appliances: Opportunity for powering the off-grid devices in
remote and rural areas.
• Off-grid powering appliances: New and novel renewable powering of the
Optical network Terminal (ONT) and connected equipment is required.
• High-density Fibre installation technology and components
• SDN and NFV opportunities
• Internet of Things (IOT) enabler: New converged Wireless and Wired devices.
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Conclusions…
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• Perfect alignment of consumer, applications, technology, infrastructure, and govt. policies creating a Perfect Storm for Broadband Revolution
• Over the Top (OTT) Broadband applications are requiring more and better quality bandwidth to the consumer
• Optical Access Networks are essential for 3G/4G/LTE/5G Mobile Growth
• With over 1MM KM Route Fibre, Indian telecom Industry is poised to take advantages of Ultra-high speed Broadband Infrastructure
• India: Huge Opportunity coupled with challenges
• FTTx friendly govt. policies for right of way and open access will fuel growth
• Challenges are being overcome with alliances and success is infectious
Fibre to the Future®