Challenges in moving towards the Next Generation of Fixed

F.Ananasso – MTR&CL – Brussels, 28 January 2010www.agcom.it

Challenges in moving towards Challenges in moving towards the Next Generation of the Next Generation of

Fixed and Mobile NetworksFixed and Mobile Networks

Fulvio Ananasso Fulvio Ananasso Director of Studies, Research & EducationDirector of Studies, Research & Education

www.agcom.itF.Ananasso – MTR&CL – Brussels, 28 January 2010 1/24

AGCOM 2009 Research ProgramAGCOM 2009 Research Program““Ultra BroadBand Infrastructures & Ultra BroadBand Infrastructures &

ServicesServices”” (ISBUL)(ISBUL)Objective: paving the road to AGCom permanent presidium on technological, juridical, economic , … aspects in Ultra Broad Band Next Generation Access Network infrastructures (UBB - NGAN):

“Fiber To The x” (FTTx) Access in NGAN DevelopmentBroadband Wireless Access (BWA)Digital Dividend – Radio Spectrum below 3.5 GHzNet Neutrality & Telecommunications Infrastructures Security Audiovisual & Media ContentsNormative Aspects / Civil Works / Ducts & Infrastructures SharingEconomic Aspects, Business Planning and Financing OptionsPublic Private Partnership (PPP) InvestmentsImpact of Regulation on Economy; ….


The AGCOM Research ProgramsThe AGCOM Research Programs

The ISBUL Research Program (2009) addressed juridical, technical and economic aspects of Infrastructures and Services for Broadband and Ultra-Broadband Networks

ISBUL has been carried out by AGCOM in collaboration with several Italian Universities:

The “SCREEN” Research Program (2010) – subject to approval by AGCOM Council - will focus on Services and Contents for Next Generation Network

- Milan (Bocconi and Polytechnic)- Naples (Federico II) - Rome (LUISS, Roma Tre, Sapienza e Tor Vergata)- Siena - Polytechnic of Turin- Imperial College (London)

www.agcom.itF.Ananasso – MTR&CL – Brussels, 28 January 2010

ISBUL ProgramISBUL ProgramWork Breakdown Structure Work Breakdown Structure


“basic” BroadBand (bBB): 2 Mbps to everyone – copper local loop - best effort / no QoS, typically asymmetric (up / downstream)

e-government; e-banking; basic e-health / e-education / e-home;…wireless possible – also anti digital divide (rural / underserved areas)

“extended” (or Fast) BroadBand (eBB / FBB): 7 ÷ 20 Mbps –symmetry / QoS / speed not guaranteed (focus on average speed)

copper local loop (FTTC) - ATT, Qualcomm, Belgacom, BT,….web 2.0, photo / file transfer, fair quality TV, music, videoclips,..wireless possible (HSPA, LTE,…) – caveat on # of users in the cell

Ultra (or Super Fast) BroadBand (UBB - SFB): > 30 Mbps, trend 50-100 Mbps -- QoS / speed / link symmetry guaranteed

substantially optical technologies – wireless breakthroughs possible Radio over Fiber (RoF) outdoor islands – Femtocells (with FTTH)

in general terms: BB < in general terms: BB < ~1~10 Mbps; UBB > 0 Mbps; UBB > ~~30 Mbps30 Mbps

BroadbandBroadband--vsvs--UltrabroadbandUltrabroadband


Context Delivery Architecture (CoDA) [2018] . “Context-aware computing", "context-enriched services“ – SOA evolution.

Augmented Reality (AR) [~2020]. Technologies superimposing computer-generated virtual reality to the “real” one perceived by the user – to provide “augmentation” of information on the real environment through virtual objects.

Green IT (green computing) [2010-2013]. Novel computing paradigm dealing with Society complex problems , aiming at reducing pollution and energy consumption, improving electronic waste disposal and quality of life – e.g.FTTH / FTTB are Green IT broadly speaking

Cloud ComputingAdvanced Teleconferencing (“telepresence”)

Some UBB ApplicationsSome UBB Applications


Advanced teleconference Advanced teleconference ((““telepresencetelepresence””))


Some issues:FTTx ArchitectureTechnology (GPON-vs-P2P)Copper Network replacement

Next Generation Access (NGA) is the access layer of fiber network, usually referred to as Next Generation Network (NGN)

NGA throughput is usually higher than 20-30 Mbit/s: the architectural model is FTTx (Fiber To The x) for fixed network and mobile backhaul for 3G / 4G (HSPA and LTE) in mobile network.

Next Generation NetworksNext Generation Networks

Network Interconnection & Infrastructure sharing


Local Exchange

BuildingCabinet

Curb

Home

ADSL

ADSL/VDSL

VDSL

ONU

ONU NT

NTONU

NT

NT

UNI

FTTEx

FTTCab

FTTC/FTTB

FTTH

fiber

OLT

OLT

OLT

OLT

copper

CopperCopper--vsvs--Fiber OpticsFiber Optics

xDSL: xDigital Subscriber LineNT: Network TerminationOLT: Optical Line TerminationONU: Optical Network UnitUNI: User Network Interface


CapEx: substantially (60%-80%) civil works costs – home passed / connected

OpEx: NTT / Verizon: 40-60% OpEx decrease with FTTH networks w.r.t. copper local loop

Capital & Operating Expenditures(CapEx / OpEx)


Aerial Access Network (Japan)


FTTH FTTH P2PP2P--vsvs--GPONGPON

11splitter

FTTH GPON(single fiber per many homes)

OLT

SGU / SL

vertical

horizontal

SDF

- FTTH P2P(single fiber per home)

Metropolitan Network (optical fiber)

primary optical fiber access

network

secondary optical fiber access

network

OD

F

SDF

DF

DFHomeONT

adduction

indoor

floor N

floor 0

…

SDF

-

Metropolitan Network (optical fiber)

primary optical fiber access

network

secondary optical fiber access

networkSDF

adduction

to other Buildings

vertical horizontal

DF

DFHome ONT

indoor

floor N

…

splitter

to other Homes

to Home to Home

DF – Distribution FrameGPON – Gigabit Passive Optical NetworkODF – Optical Distribution FrameOLT – Optical Line TerminationONT – Optical Network terminationP2P – Point to PointSDF – Subloop Distribution Frame

Exchange

OLT

SGU / SL

OD

F

Exchange

Cabinet manhole

manhole


Normative aspects, civil works, ducts & Normative aspects, civil works, ducts & infrastructures sharing (1/2)infrastructures sharing (1/2)

Active RemediesWholesale Bitstream(IP / Ethernet based)

InterconnectionQoS Classes = CoS & SLA

Active RemediesActive RemediesWholesale Bitstream(IP / Ethernet based)

InterconnectionQoS Classes = CoS & SLA

Passive RemediesUnbundling LL /SL

ColocationDucts

Optical FiberWDM

Passive RemediesPassive RemediesUnbundling LL /SL

ColocationDucts

Optical FiberWDM

Active-vs-Passive Remedies

Duct / Fiber National Inventory

FTTH P2P allows LLU - FTTH GPON allows wavelength unbundling – both allow SLU


Local Loop Unbundling – Wavelength (λ)Division Multiplexing (WDM) approach

coarse WDM: up to 18 coloursdense WDM: up to 162 colours

Ethernet speed on a single colour: 1, 10, 40 or 100 Gbit/s

Normative aspects, civil works, ducts & Normative aspects, civil works, ducts & infrastructures sharing (2/2)infrastructures sharing (2/2)

Passive Splitter

1:mλ1, λ2, ... , λn

λn+1, λn+2, ... , λ2n

ONTλ1, λ2, ... , λ2n

λ1, λ2, ... , λ2n

λ2, λn+2

λ1, λn+1

λn, λ2n

λ2, λn+2

λ3, λn+3

WDM Switch

n:1

OLT

OLO

1O

LO 2

OLO

n

λ2, λn+2

λ1, λn+1

λn, λ2n

. . .

OLT – Optical Line TerminationONT – Optical Network TerminationOLO – Other Licensed Operator


EU27 Broadband Penetration (July 2009)EU27 Broadband Penetration (July 2009)

Source: EU Communications Committee, November 2009

Italy: ~60 m people~11,9 m lines (~11,5 m DSL)

EU27: ~500 m people ~120 m lines


World BB & UBB Subscribers @World BB & UBB Subscribers @2Q20092Q2009Total: ~444 million subscribers

~378 million BB (xDSL & Cable Modem); ~56 million UBB FTTx

~10 million wireless technologies

Geographic AreaBroadband & UltraBroadBand Subscribers per

access technology (millions)xDSL Cable Modem FTTx

Western Europe 90,98 15,95 1,93Southern & Eastern Asia 81,14 1,10 22,19

North America 39,70 48,92 4,06Asia - Pacific 29,13 11,53 24,36

South America 19,80 7,81 0,01Eastern Europe 13,50 4,98 3,60

Africa and Middle East 11,90 0,87 -World 286,20 91,30 56,20

Source: PointTopic, September 2009


What kind of broadband technologies for What kind of broadband technologies for the future the future –– fixed or wireless or both?fixed or wireless or both?

the “gap” between the two classes of technologies tends to remain ~constant


from “The Role of Cooperation in Establishing an Efficient Femto Economy”by Prof. Simon Saunders (Femto Forum Chairman), 2007

Femtocells (1/4)Femtocells (1/4)


Building walls sufficient to prevent signal from leaking out into the streets in the same way they prevent the signal getting in





Video/audio download & store

Improved indoor coverage

FEMTOCELL

FEMTOCELL

FEMTOCELL

FEMTOCELL

Improved capacity through multiple coverage zones

HealthSmart home: remote monitoring & control



Digital Divide and USODigital Divide and USOEffective policy against Digital Divide (DD) needs structural actions to address socio-economic, technological and cultural issues in order to boost BroadBand (BB) adoption – in the presence of:

technological digital dividecultural digital divide

e-government / P.A. BB policy plans to play a major role against DDUniversal Service Obligations (USO) definition does not presently include BB services – but strong debate in progress on whether or not to extend present USO provisions to BBeconomical, demographical and cultural situations to estimate “optimal” BB coverage detect over- and under-performing areasBB access as a “new” social right -- “4th generation right”?New USO approach? from “demand spreading” to “social utility”?


Total ReplacementTotal replacement of existing

networks - transparent customer migration / PSTN services emulation

Total ReplacementTotal ReplacementTotal replacement of existing

networks - transparent customer migration / PSTN services emulation

OverlayGradual replacement of existing networks - voluntary customer

migration

OverlayOverlayGradual replacement of existing networks - voluntary customer

migration

An important issue is the interconnection between NGNs and non-NGNs, aiming at ensuring a fast transition to NGN

Service

Transport

Access non-NGNnon-NGN

NG

N

Mixed ApproachMixed ApproachMixed Approach

Options for transition to NGAOptions for transition to NGA


State aids only in “white areas” (market failure) in EuropePublic private partnership (PPP) in “gray areas” ?Private investments in “black areas” – full (infrastructure / service) competitionSwitch off from analogue to digital TV digital spectrum dividend State as “facilitator” to achieve the necessary levels of investmentNational strategy on ICT

ICT Industrial Policy / digital plan ICT as an accelerator of economic crisis recoveryaddress ICT illitteracy

Financing optionsFinancing optionsRole of GovernmentRole of Government


How to share the risk of NGN development and charge NGN usage?

Revised accounting approach considering:

NGN long run maintenance costs – or replacing costs for digging new trenches / providing new ducts / …

a nominal Rate of Return (ROR) on the NGN assets.

Key issue in NGN regulation: the role of national and local governments pursuing administrative simplification -- access to ducts, price of digging, public money to fund infrastructures’investments,…

NRAs play a fundamental role in this process as a market regulator, bearing the responsibility to adopt specific regulatory measures in order to protect competition in NGN related markets -- ULL, bitstream, interconnection costs, migration procedures,…

Effective investment promotion / Effective investment promotion / risk sharingrisk sharing


Should everything happen sooner?Should everything happen sooner?


Thank you for your attention Thank you for your attention

[email protected]@agcom.it

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Challenges in moving towards the Next Generation of Fixed