Slide 1 Access to Bandwidth The Way Forward Peter Walker Director, Technology OFTEL...

Access to BandwidthThe Way Forward

Peter Walker Director, Technology

OFTEL

[email protected]

Responses to previous DSL TG Recommendations

Approval regime for DSL-lite• Not useful as RTTE-D overtakes us

RA testing of DSL equipment• We understand cooperative testing is

now planned

Responses to previous DSL TG Recommendations

Promoting standards and Interoperability• Oftel promotes and supports international

standards• Compatibility testing is a matter for industry

Application of RTTE Essential Requirements• Sympathetic to this• But may not be complete solution• Need to consider ERs under ONP Directives

Results of consultation

And recap of 5 options

Option 1: Local Loop Unbundling Layer 0 (physical medium) Access

OLO collocated equipment

OLO provided

equipment

Customer Site BT Local Concentrator Building

Loop acquired from BT

MDF

Option 2: Partial Baseband Leased Circuit

Layer 1 Analogue Access


OLO provided

equipment

Customer Site BT Local Concentrator Building

BT Partial Baseband Leased Circuit

NTP

NTP/POIMDF

Option 3: Bitstream Access Layer 1 Digital Access


BT Local Concentrator Building

BT Bitstream Circuit

NTP/POI

DSLmodem

DSLmodem

NTP

Option 4: Permanent Virtual Circuit Access

Layer 3 Access

OLO or SP

BT Local Concentrator

DSLmodem

DSLAM

NTP

NTP/POI

ATM switch or IP router providing

Permanent Virtual Circuit connection to OLO or SP

ATMor IP

DSL Access Multiplexer

Option 5: Indirect Access Layer 4 Access

OLO or SP

BT Local Concentrator

DSLmodem

NTP

NTP/POI

To rest of public network

OLO route accessed

via short code

ATMDSLAM

Results of consultation

Over 60 responses from a wide variety of bodies

Preliminary conclusion is that there is unmet effective demand in the SME sector

Residential sector has promise of future effective demand, but faces ‘chicken & egg’ situation at present

Operators and Service Providers’ also had current unmet demand

Options for Action

Customers need access to services, not access options

Service Providers prefer wide accessibility as delivered by Option 4

Operators preferred more control over service delivery and timing, as in Option 2

Options 1, 3 and 5 received less support, though Option 5 is long term goal

Balancing risks

If no action is taken, effective demand in the SME sector may remain unmet or seriously delayed

Similarly, effective demand in the residential sector may not emerge

But risk that regulatory intervention can distort investment decisions

Or might deter competing solutions

Preferred Options

Main pointers from consultation is that Option 2 and Option 4 had greatest support

Need to analyse carefully these two Options

Pros and Cons of Option 2

Option 2 is a form of unbundling

Would give customers competing choices of higher bandwidth access

Each operator can take its own risk and investment decisions independently of BT

Likely to stimulate innovation in the range of services

Pros and Cons of Option 2 (2)

But: Option 2 unlikely to deliver early availability of ‘mass-market’ higher bandwidth access

Technical difficulties in spectral management

Co-location and process issues need detailed planning

Not all Operators want to supply telephony as well - could a split be practical?

Pros and Cons of Option 4

Substantial proportion of UK could be covered quite quickly

Thus attractive to many Service Providers

Minimises technical and operational problems

Customers can retain BT as telephone supplier


Some effective demand my remain unmet for some time

No competition in the network upgrade

Choice of technology in the hands of BT

If pace and extent of roll-out left to BT:-


OFTEL would have to substitute its assessment of economic viability for BT’s

Highly unattractive

If OFTEL were to determine extent of roll-out:-

OFTEL’s conclusions on consultative responses

The pros and cons of Options 2 and 4 tend to balance each other

A combination of Options 2 and 4 likely to best meet overall objectives

Stimulates competition in both Service Providers and Operator markets

Differing needs of residential and SME could be met

Market Developments

BT is expected to announce soon its plans to roll-out ADSL based services, similar to Option 4

BT would provide wholesale access to Service Providers

And wholesale interconnect to other Operators

BT must treat its own SPs as it treats others

BT’s concerns over Option 2

Believes ADSL service only viable with high volumes of customers

Believes that Option 2 would take away that high volume of SME customers

Believes that Option 2 would divert resources from roll-out of Option 4

Next Steps:OFTEL’s initial conclusions

Still believe that combination of Option 2 and Option 4 best meets needs

Not convinced of BT’s arguments

But will commission an independent assessment of ADSL viability

And progress work on Option 2

Option 2 studies The NICC will be asked to produce a Spectral

Management Plan to support Option 2

Focus Groups will be established to develop guidelines for the provision of:

• Co-location facilities• Operational processes for loops

Target for this work is June 2000

Could allow Option 2 by July 2001 if agreed

Further consultation

OFTEL seeks rapid reactions to our preliminary conclusions

Consultation runs to 30th September 1999

Expect to announce firm conclusions by end of October

Option 2 Proposed Time Plan

1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 5th Qtr 6th Qtr 7th Qtr 8th Qtr

Technical

Co-location

Process

Pricing

Build

Scoping work on all tasksSpectral Management PlanCompatibility Tests

Specify Co-locationDesign processBuild support system& priceDesign circuit process

Build support system& price circuits

Publish exchange area data

Develop commercial offerCollect Circuit ForecastsTrial

Collect orders

Build initial sites

OLO installation

Service starts 1st July 2001

Slide 1 Access to Bandwidth The Way Forward Peter Walker Director, Technology OFTEL...

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