Destination FTTH

7/27/2019 Destination FTTH

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Course of Lectures about

Optical Information SuperhighwayConstruction Core Backbone network Hotspot Metro network Destination FTTH


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Ren Hailan

Wuhan Research Institute of Post &Telecommunication


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Agenda

Background of FTTH FTTH Status and Forecast FTTH Technology Basics FTTH in China


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Telecommunication Trends

Optical TransportHigh Capacity ComponentsBroadband AccessHigh Capacity Transport

Broadband

Carry graded InternetConvergence RegulationsMultiple ServicesTransport-bearerAccess Technologies

Fixed-mobile

Convergence

Integrated Wireless SystemsOpen Service PlatformMobilityPersonalized Services

Personalization


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Next GenerationWireless Network3G\WLAN\WIMAXNext GenerationAccess Network

DSL\FTTH

Next GenerationInternetIPV6Next GenerationTransport NetworkASON/WDM

NGN is for All the Future Networks

Next generationswitching networkSoftswitch

End-to-end, evolved, converged total solutionUniversal protocol based packet network

Open platformService driven

With switching as the core


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Evolution to NGN Access Network

ADSL1-20MDialUp56K

FTTH

100MTTx+VDSL50M

Narrow BandBroadband

Single ServiceIntegrated Services

SingleserviceIntegrated

Service

Narrowband

Integrated

Broadband

Wirelessixed

SeparatedConverged


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Why FTTH?

HTTF:

FTTH:

How To Trade Fiber

Fiber To The Home


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FTTH Driving Forces

Competition LEC vs. CATV CLEC vs. ILEC

Market

Services New applications (Gaming, VOD, P2P, HDTV) Each family needs about 60M b/w

Regulation Governments new regulations to encourageFTTH deployments

Technology Progress in op-electronics and micro-electronics FTTH cost (system, fiber, device) drops dramatically

Promotion to other industries Overall market: 200-380 B /year in China


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Access Still the Bottleneck

Backbone

160X10G DWDM

ULH: 10G 3000km

40G SDH

Metro

MSTP

CWDM/DWDM

Metro GE

AccessDial-UpADSL

LAN

ASIC

Mores Law


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Video Application Needs FTTH

Access rate


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ADSL Cannot Meet the Needs


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WiMAX

Wi Fi

Neither Current Wireless


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Agenda



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Japan FTTH users from 531,000 in July 2003 to 2.03 million in Sept 2004 Forecast 7.7 million by 2007

United States Massive deployments started in 2004. 200,000 users by mid 2004 Verizon plan 3 million by 2005; SBC plan 19 million by 2007; Bellsouthplan 2.8 million by 2009

Sweden 245,000 FTTH users in July 2003 with 10M as the typical bandwidth Provide E-magazine, VOIP phone, etc.

Italy 145,000 FTTH subscribers in July 2003, more than half of BB subs Provide voice, data, VOD, E-gaming, VoIP, CATV

Netherlands and Australia Also have FTTH deployments and future plans

Globe FTTH Update


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Source:RHK, Corning, Point Topic Q2 2003

Broadband lines by region

CALA2% EMEA25%

NorthAmerica29% Asia44% FTTH lines by region

CALA0%

Asia71%

NorthAmerica

9%

EMEA21%

Global Broadband Statistics


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Global FTTH Forecast

Source: Cahners In-Stat Group,RHK 2003

FTTH Subscribers CAGR 220%


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Agenda



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Access Network The network portion between CO and the user Function includes cross connect, multiplexing, transport, but no

switching

Also known as local network, local loop, or subscriber loop

Optical Access Network (OAN) The set of access links sharing the same network-side interfaces and

supported by optical access transmission systems.

Access Network


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OAN Reference Configuration

T1520720-96

AN system management functions

ONU

ODN OLT

ONUAF

Service

nodefunctions

R/SS/R

(a) reference point

User side

Q3

Network side

(T) reference point

UNI

(V) reference point

SNI


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OAN Network Architecture

T1528110-98

F T T C a b

F T T HO

N

T

N

T

N

T

ON

U

O

NU

OL

T

F T T B / C

fibre

fibre

fibre

copper

copper

access networkhome

network

UN I SN I

O N U O ptical Netw ork U nit

O N T O ptical N etw ork Term ination

O LT Optical Line Term ination

T N etw ork Termination


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Terminologies FTTH Fiber To The home FTTO Fiber To The Office FTTC Fiber To The Curb or Cabinet FTTB Fiber To The Building FTTF Fiber To The Floor FTTP Fiber To The Premises FTTN Fiber To The Node FTTX Fiber To The eXchange FTTx General term for all of above


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FTTxFiber

Copper

SplitterCO

CO

ActiveModule


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FTTH Defined

ITU-T: Fiber to the householdno copperbetween CO and households

FCC: H includes both household and smallbusiness

We Extend: H includes individual household,small business, and multi-dwelling apartment

building


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High endresidence

Business/CBD

Internet Center

High end residence, especially the new builds, will be the startingpoint for FTTH

They are wealthy, seeking for modem life with advancedtechnologies

Large scale deployment, easy for planning, deployment andmaintenance

Most users in business building/CBD requires high bandwidth,

integrated services, and can generate high ARPU Triple play plus TDM leased lines

Internet centers are very popular in China, they usually closelylocated to each other and need large amount of b/w

ADSL does not meet b/w requirements, FTTP a good solution

Because closely location, PON is a good choice

FTTP Target Market


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FTTO Example

Internet

Company E

BasementP5012(OLT)

Teleom

building

Building A Building B

BP5001(ONU)

(ODN)

Company A

Company B

Company C

Company D

Company F

Company G

Company H

Company I


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N fibers

1 fiber

Existing PDH

access

EPON access

E1/T1 Convergence


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FTTH Example

House

High-endMDU

High-endMDU


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FTTH System Requirements Integrated Servicevoice, video, data, multimedia, TDM

High Capacityfinal b/w about 100Mbps/home

Low Cost 800/home Scalabilitybandwidth/home#subscribers/system

Manageabilitysubscribers, provision, fault, performance,security, billing

Interoperabilityexisting equipment, multi-versions,standardization

Availabilitymaximum failure/year, smooth upgrade

Flexibilityservice types, bandwidth, accounting/billing,system protection


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FTTH Generic Architecture

OLT

CATV Net

ONU

Access PartUser Partetwork Part

1-20km

ODN

50-300m

PSTN

Internet


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Beyond FTTH Access

OLT

CATV Net

MSTPOLTPSTN

Internet

CATV Net

PSTN

Internet

NetworkSide

ONU

WLAN

FiberONU

75

RJ11

RJ45

Cable

75

Home Side


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End-user Multiplex Mechanism

WDM

TDM

CO

1

1

1

2

2

2

CO

(1, 3, 5 )

(2, 4 6, )

1

23

45

6

CO

12

12

1

2

1

2

Fiber-D


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FTTH Architectures

CO

Single level P2PN pair of low speed O-modulesN long fibersN ports at CONo active componentsNo b/w limitation

CO

Two level P2P1 pair high speed O-modulesN pair low speed O-modules1 long fiber + N short fibers1 port at COActive components

No b/w limitation

CO

Fiber in the Building1 pair high speed O-modules1 long fibers1 port at COActive componentsB/w limitation

CO

PONN+1of low speed O-modules1 long fiber + N short fibers1 ports at CONo active componentsNo b/w limitation


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PON with 3 Wavelengths

CATV

1.49

1.31

1:161.55

1:32

1.49

1.55

1.31

Filter-1 Filter-2

Internet

PSTN

.

.

.

.

.

.

VSB-AM VSB-AM

TDM

TDM

OLT


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CO

CO

OLT

N fibers

2N transceivers

OLT

1 1 fiber

2 N+1 transceivers

31 port

N ports 4dynamic bandwidth sharing

P2P PON

5 high speed modulelow speed module

P2P vs. PON


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FTTH Topology


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How Does PON Work? True broadcast downstream,

Each ONU filters its ownusers traffic

Bandwidth statisticmultiplexing

Upstream time slicing

No collision

No packet fragmentation

Dynamic bandwidthallocation

Fast burst synchronization


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Same topologyP2MP fiber

APON EPON GPON

Different encapsulation

Proposed by FSAN andstandardized by ITU-T

ATM encapsulation

Standard most mature

Used in US and Japan

To be replaced

IEEE EFM standardized802.3ah

Ethernet encapsulation

Standard mature

Rapid growth in market

Widely used in Japan

Proposed by FSANstandardized by ITU-T

GEM encapsulation

Standard on going

Few vendors

PON: P2MP Technology


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APONEPON and GPON

L 3

L 2

L 1 P O N P h y s ic a l L a y e r

I P

E T H

T D M

P O T S

v i d e o

L 4

L 5

T C P / U D P

P O T S

v i d e o

E T H

P O T S

v i d e o

d a t ad a t a

d a t a

A P O N E P O NP O N

T D M

A A L 5A A L 1 / 2

T C P / U D P

T D M

E th e r n e t F r a m eG E M F ra m eA T M C e ll

I P

T C P / U D P

I E T F

P W E

I P


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EPON use WDM to realize bi-directional transport on asingle fiber

In order to distinguish the signals in two differentdirections, two multiplexing technologies adopted TDM for downstream TDMA for upstream

1490nm

1310nm

EPON: Multiplexing


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Broadcasting mode

After registration, ONU is assigned unique LLID(s)

Before transmitting a packet, an LLID was added into every packet

After receiving a packet, OLT compares the LLID with its LLID registrationlistONU only accepts those packet that has its own LLID or broadcasting

packet

EPON: Downstream

ONU-specificpacket

ONU-specific

packet

Splitter

Variable lengthpackets IEEE 802.3format


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TDMA mode

EPON: Upstream

Packet in IEEE 802.3 formatwith viable length

End-user 1

End-user 3

End-user 2

ONU-specific

packet

ONU-specific

packet


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ONU ONU synchronize with OLT

through timing message

ONU waiting for (gate

ONU perform discovery operation

ONU waiting for authorization tosend data

OLT Generate timing message used as

system reference time

Assign bandwidth using MPCP

frame

Ranging Control ONU registration

EPON: OLT and ONU


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GPON System Architecture


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Lower reliability and lower cost

Suitable for high-endresidential users and small

business users

PON ProtectionFull protectionTrunk only protection

higher reliability and higher cost

Suitable for high-end businessusers


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FTTH Product Categories Equipments

P2P Ethernet / P2P SDH APON EPON GPON WDMPON

Components Active modules (duplex, triplex transceiver, etc) Passive devices (Splitter, Filter, etc.)

Cable backbone cable, access cable, drop cable, in-door cable

Accessories All kinds of accessories for deployment, installation and

maintenance


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Agenda



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Since 1990, the capacity of China PSTN hasincreased from 12M lines to more than 610M lines(July. 2004) ,The telephone penetration has increasedfrom 1.1% to 45% New installed wireline was 36M in the first half of

2004, which is approx. 50% of total new installedwireline world wide New installed ADSL sub. was 7M in the first half of2004, which is approx. 45% of total new installedADSL sub. world wide

Huge Traffic Growth


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020000400006000080000

100000120000140000

2000 2001 2002 2003 2004.9

Mb/s

Internet

Leased linePSTN

126GIP/PSTN = 32

International B/W Trends

China Domestic


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364 21747193

18263

02000400060008000

100001200014000160001800020000

2000.5 2001.5 2002.5 2003.5

Tbyte/m260 increase per year !

Backbone IP Traffic Growth


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Current BB Access Situation By June 2004, China has 87M Internet users

9.4% increase over year end of 2003

28% increase over mid 2003

6.7% of the population

31.1M broadband users 79% increase over year end of 2003

217% increase over mid 2003

By June 2005, the number of Chinas Internet users is103M Bear Sterns forecasts 144M BB subs by 2007 ADSL is the dominating technology

SOHO and Residence Environ.


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Cities and townsdensity wealthy distance B/w %

Smallbusiness high high close-far high 8%Luxurydistrict medium high medium-

farhigh 5%

MDU high medium close-medium

medium

-high72%

Remoteresidence low low far low 15%

Chinas FTTH Roadmap


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2003.11 2004.12 2006.6 2007

Stage 1Research and

development

2004.6 2005.9

Stage 2Testing and field trial

Phase1TestingEquipment maturity

and availability

Stage 3Commercial deployment

and operation

Phase3Small ScaleDeploymentOperation and

maintenance

Phase2Field TrialDeployment and

business model

Current Situation (1/3)


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FTTH is well accepted as a future-proof access solution

However, people hold different opinions as for when large scaleFTTH deployment starts

Government considering FTTH a huge market

Governments FTTH program: eleventh 5 year plan

Local government considering local regulations to promote FTTH

Applications

No single killer application so far

HDTV viewed as killer application but not widely used yet Gaming, IPTV, digital home, etc. together may make killer

applications

FTTH products are mature

Many equipment vendors and cable/fiber providers

EPON and point-to-point FTTH is commercially available

Ethernet based WPON and GPON are under development

Various out-door and in-door FTTH fiber and cable are available



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FTTH integrated with home network ONT functionality extension into home gateway

Carriers attitude are generally positive

China Telecom formed an FTTH special leading group and

deployed the first commercial FTTH in Wuhan China Netcom complete country-wide FTTH testing and a

number of deployments

China Mobile is considering FTTH for its wire-line access

FTTH forum

Founded in 2004 by Fiber-on-Line to promote FTTH research,development and deployment

Standardization

By China Communication Standard Association

Also by local governments: Wuhan and Hangzhu Major issues

High cost in comparison with ADSL which dominates todaysaccess market

Lack of applications



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Some deployments and certain deployment experience

Good equipment installation experience but few cabling andwiring experience

Countrywide FTTH field trials and commercial deployments

More than 20 FTTH field trials and commercial deployments inWuhan, Beijing, Chengdu, Hangzhu, Shanghai, Guangzhu, etc.

The biggest has about 2000 subs

More FTTH deployments planned

The first FTTH in commercial operation by major carriers Zisong residential district FTTH with 420 subs by Wuhan

Telecom and operation starting in Jan 2005

IP telephone, POTS phone, Internet, CATV, FAX, IPTV

1:32 GEPON with triplex WDM

A big district in Wuhan plan to use FTTH/O

An area of about 7 square km with population of 160,000

Including residential building and CBD

All FTTH and FTTO for access

Major Players


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Equipment

Fiberhome (EPON, GPON)

UTStarcom (EPON)

Greenwill (EPON)

Fohope Networks (WPON)

ZTE (EPON)

Fiber/Cable Fiberhome

Changfei

Hengtong

Devices and Module WTD

Fiberxon

Accelink

Vendors Telecos

China Telecom

China Netcom

China Mobile

China Unicom

Residential service providers

Tailong

Service providers

Technology Choices (1/2)


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Service requirements Multiple-play: voice, Internet access, CATV, IPTV, leased line

Three types of subs: home, small-medium business, largecorporation

Two major FTTH architectures P2P and PON

P2P is good for Enough CO space

Subs are sparsely located and their distances to CO are quite

different

High scalability requirements in # of users and b/w

PON good for Limited CO space Subs are closely located and their distances to CO similar

Low scalability in # of users and b/w

Technology Choices (2/2)


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EPON will dominate FTTH market

For high-density home and small office

POTS, Internet, CATV, IPTV, VOIP

Easy to evolve to NGN GPON will be mainly used for FTTO

For high-density medium size corporations

POTS, Internet, IPTV, VOIP, small # of leased lines

Make the best use of exiting network resource

Point-point SDH

For big corporations and sparsely located medium size corporations

Large number of leased lines (ATM, FR, TDM), voice and Internet

Point-point Ethernet

For sparsely located home and small business which does notneed lot of leased line services

EPON or GPON?


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Optical level No big difference

Cost EPON is cheaper

Encapsulation efficiency Commonly accepted: EPONs efficiency is less than 50

GPONs great than 90

It all depends on what service: Ethernet? TDM?

In reality, almost all the IP services carried over Ethernet

Support for TDM Both EPON and GPON support TDM GPON is more efficient for large number of E1/T1

Maturity EPON is more mature

ConclusionEPON and GPON suitable for

different environments

Fiberhomes Total Solution


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Citrans 850series MetroDWDM

IBAS 100 EdgeOptical NetworkProducts

MSTPCitrans SeriesMSTPProducts

Citrans830SeriesCWDM

Metro DWDM

ASONFonsWeaver 640FONSTW1600

Long HaulDWDM

Citrans SeriesMSTPProducts

Citrans 850Series MetroDWDM

Citrans 830Series CWDM

IBAS 100 edgeoptical networkproducts

FiberhomeForce10 CoreRouter

MAISP8000ConvergeRouterR4000 SeriesConvergenceRouter

S3000 SeriesLayer 3 Switch

R3000 SeriesEdge RouterodeB

NodeB

NodeB

SGW

MSC-S/VLR

HLRFHX 3000MGW

FHX 5000SGW PSTN

FHX 8000Softswitch

FHX 1000 SeriesIAD

BWAat COBWA enduserWLANAP

PDA

MobileData

BroadbandWirelessAccess

AN2000 SeriesDSLAM

S2000 SeriesLayer 2 Switch

ODN1:64

BP5000 EPONONT

ADSLADSL2+

VDSL2

EnterpriseCustomers

GovernmentCustomers

Media Server Application Server Billing Serverolicy Server

MSTP

Metro DWDM

SS7

NodeB

NodeB

NodeB

IN

3G Core NetworkCircuit Domain

3G Core NetworkPacket Domain

SS7

PSTN

MGW

RNC

BP5000 EPONOLT

AN3000 SeriesIAS at CO

AN3000 SeriesIAS Remote

BroadbandNarrowband

GGSNGSN

RNC

Edge access Edge Access

Integrated

BearerPlatform

Fiberhomes FTTH Solution


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Started PON products development in 1995 Industry Leader in supporting Integrated services P2P Ethernet, EPON and GPON Single fiber with triple wavelength, true triple-play Smooth evolution to NGN/softswitching High GEPON interface density Complete accessories

Equipmentcarrier grade GEPON system with advanced OAMGEbackplane (48G), 1:32 splitter, 1024 ONU on single chassis

Componentsall active (transceiver and CATV module) and passive (splitter,wavelength multiplexers) components for GEPONCableall kinds of cables for FTTH and installation solutionsAccessoriesall kinds of accessories for FTTH

Current Focus: FTTH and FTTO


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CATV, DTV

KM

Evolution to Soft-switching


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To interwork with PSTN through open V5 and/orPRI and make the best use of existing networks

Control module supports H.323 and H.248, flexiblefor both H.323 VOIP network and future softswitch

network

PSTNV.5/PRI.. Integrated MG

H.248 ANM2000

MGCFHX8000

H323GatekeeperFHX3000GE H323

Metro Network

Integrated Access capability


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FTTH to Home Network


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BP5005

ODN

ODN

V5

GEMetro IP

PSTN

CATV

e-Fim ANM2000

Single fiber to house, true triple-play Communication, entertainment andmonitoring together Smooth evolutionONUhome gateway High density ADSL2+/VDSL/FTTP equipment

Data100M/family VoicePOTS and VOIP VideoCATV and IPTV Leased lineTDM and VLAN With WLAN integrated

FTTH Cables


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Backbone CableAccess CableDrop CableIndoor Cable

Deployment Model


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By telecos and CATV providers Same as that for the existing BB access networks Invest once and profit in a long term

By telecos, CATV providers and house builders House builders responsible for deployment, deployment

cost counts into into house price

Telecos and CATV responsible for operation andmaintenance

Multiple parties share the profit

By residential service providers (RSP) RSP responsible for network operation and maintenance Telecos responsible for providing exit port and b/w Services provided by multiple-parties

Operation Model


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By telecos and CATV providers Enough operation experience

No interworking and inter-billing problem

Hard for triple-play

By residential service providers Easy for integrated planning and deployment of the overall

information platform

Evolution to NGN

Encourage competition

Network resource sharing

Tailong model in Chengdu is the first attempt

Zisong FTTH in Wuhan


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The first FTTH network in commercial operation by service providers FTTH deployment for existing dwelling building with 420 subs

The total FTTH solution from Fiberhome, including 1:32 triplex GEPON equipment,splitter, all the kinds of cable and all accessories

CO

Cabinet

PCPhone

Zisong FTTH Deployment Field


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Cabinet with splitter inside Insider of the Cabinet Leading cable

Cabinet in the building End unit (ONU)Insider of the ONU

Beijing CNC FTTH Project


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The five vendors are Fiberhome, Utstarcom, ZTE, Huawei, and Gaohong

4 large scale

technology discussion

and 5 vendors selected

for testing

5 vendors

EPON

equipment

testing

Lab FTTH

network

demonstration

Firstcommercial

deployment

FTTH Cost


72/80

CAPEX UpgradeOperation

Maintenance

Fiber3%

Engineeringdesign

4%

Construction21%

Equipment60%

DN Compon ents12%

Equipment Price Trend


73/80

0100020003000400050006000700080009000

2004 2005 2006 2007 2008

EPON equipment price for triple-play per line

EPON Equipment Price ( /sub)


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Services < 5000 line >100000 line2005 2006 2008 2005 2006 2008

Internet

only 1590 1350 900 1200 1000 600

Internet +

voice1950 1500 1000 1430 1100 750

Triple play 4400 3080 1800 3000 2100 1400

FTTH CAPEX ( /sub)


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Services< 5000 line

2005 2006 2008

E C Total E C Total E C Total

Internet Only 1590 1500 3090 1350 1100 2450 900 700 1600

Internet +

voice1950 1700 3650 1500 1300 2800 1000 800 1800

Triple-play 4400 2000 6400 3080 1500 4580 1800 900 2700

Services> 100,000 line

2005 2006 2008

E C Total E C Total E C Total

Internet only 1200 1000 2200 1000 700 1700 600 400 1000

Internet +

voice1430 1250 2680 1100 900 2000 750 500 1250

Triple-play 3000 1500 4500 2100 1100 3200 1400 700 2100

FTTO Case Study


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Item /Penetration Year 135 Year 250 Year 3601 # of FTTO subs5100 in total 1,785 2,550 3,060

2 OLT800/line4000 line 3,200 - -

3 ONU1000/each 1,785 765 5104 FTTP Cable800/each 4,080 - -

5 CAPEX in Total 9,065 9,830 10,3406 Monthly fee (198/sub 4,241.2 6,058.8 7,270.6

7 Installation fee1800/sub 3,213 1,377 918

8 Revenue in total 7,454.2 14,890 23,078.6

9 Operation fee4% of CAPEX 362.6 393.2 423.6

10 Sale and other fee20 of revenue 1,490.8 2,978 4,615.7

11 Real revenue 5,600.8 11,518 18,039.3(in 1K Chinese Yuan)

Challenges


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No killer applications Most applications low b/w : Email, web surfing, web gaming Telecos not allowed to run broadcast TV People not used to pay for TV

FTTH still too expensive than existing technologies ADSL equipment: 400-500/user FTTH equipment: 1600(Internet), 2000 (voice + Internet), 4000 (triple play) FTTH cable: 1500(Internet), 1700 (voice + Internet), 2000 (triple play)

No deployment and operation experience No large scale commercial FTTH deployments Few commercial FTTH in operation but little operation experience

Competing technologies meet current requirements

ADSL/2/2+, LAN, MMDS/LMDS, HFC, WLAN, WiMAX, BPL

Profit model not clear

Regulation discouraging for FTTH deployment Residential service providers CATV rights

Opportunities


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New applications emerging Country-wide digital TV plan

IPTV become very hot

HDTV starts enter into market

P2P and gaming exhaust bandwidth

None of the existing technologies can provide 60Mb/w per family FTTH cost keeping dropping

FTTH cost keeps dropping dramatically

FTTH cost/bandwidth is much lower than other technologies

For FTTO, cost is not the most important factor

Deployment planned More than 20 FTTH deployments are on-going with the largest of 2000 subs

A large residential FTTH in Wuhan with more than 16000 residents

China Netcom considering FTTO for Beijing CBD

2008 Beijing Olympics prefers FTTDesk and FTTH

Experience and encouragement from Japan and US Encouraging regulations are under governments consideration

FTTH deployment bundled with real estate

Separation of TV network and TV program is under consideration

The Telecommunication Law will further encourage competition

Summary


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FTTH is accepted as a future-proof solution

FTTH has seen rapid growth in some developedcountries

Both P2P and PON have their favorabledeployment environments

APON is widely deployed in US, but will be out

EPON and GPON will dominate FTTH and FTTOrespectively

Chinas FTTH market is huge and is approaching

massive FTTH deployment


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Thank You

Documents

Destination FTTH