TECHNOLOGY The New Broadband Reality€¦ · President, Tom Reiman, “Defining and then building an FTTx network is a complex but critically important un-dertaking. We have seen

136 | BROADBAND PROPERTIES | www.broadbandproperties.com | August/september 2008

TECHNOLOGY

A s user demand for high-band-width applications continues to escalate, service providers must

anticipate and prepare for future band-width demands so they can counter the onslaught of competition coming from new directions.

Experts advise operators to “future-proof their networks.” We suggest a slightly different focus: “future-proofing revenue.” It is critically important to de-velop a clear view of how the network will be used to generate revenues today and in the future.

Selecting a technology platform is important. But it is no less important to develop and accommodate applications and services that yield revenues, and to monitor consumer trends in order to stay ahead of the curve. This is equally critical whether the network is oper-ated by a commercial service provider, a municipality or a utility. Looking at it another way, you must have a clear view from the outside in before you can build from the inside out.

PLANNiNGService providers dealing with price and service competition, fickle customers (churn) and aging infrastructure need to change their thinking and focus in the planning phase in order to create business success in the future. Planning “from the outside in” can reinvigorate

their approach to tackling these busi-ness realities.

Know your customer. Service pro-viders must understand customer de-mand, both actual and potential. If you currently provide only voice services, customers may not think about ask-ing you for other services. You may be tipped off to new demand by the arrival of new competitors. In your market area, what other options do subscribers have for services? From whom do they get different services? Are they satisfied? Is there competition for HDTV channels, or for Internet capacity? Also consider businesses and institutions such as utili-ties, schools and universities with special needs that can be met by FTTP. Look at the situation from the subscriber’s point of view to be sure you are accurately as-sessing the scope of demand.

Develop a technology master plan. To factor in all of the components, is-sues and stakeholders involved in de-ploying broadband solutions, prepare a detailed feasibility study including tech-nology selection, a review of infrastruc-ture design, construction, regulatory issues, and policies for service provision-ing and content acquisition. What is the

best technology choice for today’s ap-plications and those of the future? There will no doubt be multiple systems and applications from a variety of vendors, introducing issues of interoperability, engineering priorities and overall project management. A comprehensive project feasibility exercise can ensure that the service provider will generate sufficient revenue to support the construction and operation of the proposed network.

Taking the time necessary to re-search and analyze your business envi-ronment will give your project the maxi-mum opportunity for success. Once you have developed a master plan, you will have a clear view of the road ahead and can apply discipline to execute the plan. The Broadband Group, headquartered in Las Vegas, Nevada, works with ser-vice providers to develop a Technology Master Plan.

According to the Broadband Group’s President, Tom Reiman, “Defining and then building an FTTx network is a complex but critically important un-dertaking. We have seen many projects struggle in the absence of a comprehen-sive and detailed Technology Master Plan that complements the other ele-ments of smart growth and environmen-tal sensitivity. The decision-making pro-cess in broadband planning must be part of an overall commitment to excellence that understands the demographics and interest levels of those they intend to serve. This approach, supported by sus-

The New Broadband Reality

By Pete Westafer ■ Hitachi Telecom (USA) Inc.

It isn’t the network that needs to be “future-proofed,” but the network operator’s revenues. Choosing the right technology and applications is key.

The arrival on the scene of new competitors may be a tipoff to hidden demand.

Look at the situation from the subscriber’s point of view to be sure you accurately assess

the scope of demand.

August/september 2008 | www.broadbandproperties.com | BROADBAND PROPERTIES | 137

TECHNOLOGY

tainable broadband infrastructure, goes a long way toward justifying the invest-ment and ensuring long-term returns.”

A Technology Master Plan enables companies to:

• Thoroughly understand the “land-scape,” including subscriber demo-graphics, regulatory considerations,

competition, future expansion poten-tial, and commercial applications.

• Craft a plan that closely matches the landscape.

• Select the technology platform that will be a cornerstone of the network.

• Understand the operation of the net-work from top to bottom.

• Develop the vision and implementa-

tion process to integrate technology into the process.

• Define partnership relationships needed to deliver the services de-manded by subscribers.

• Identify the critically important ad-ministrative and marketing support.

• Create a roadmap for improved prof-itability and providing a “true” con-nected community.

An essential component of the plan is identifying solutions tailored to the local market. In spite of the inherent simplic-ity of delivering the “triple play” over a single infrastructure, there is complexity and choice. For example, you can choose between facilities-based or hosted solu-tions. In some cases, a hosted approach can enable quicker time-to-market, important in achieving ROI objectives quickly and heading off competition. In emerging communities with a “future” customer base, hosted services, which are typically priced on a per-subscriber basis, support a “pay-as-you-grow” ap-proach to services delivery.

Service provider evolution. An end-to-end master plan allows service providers to bring new revenue sources to market faster, consolidate communi-cation channels, realize ROI objectives sooner and meet competitive challenges on a timely basis. It also allows them to future-proof network investments by implementing new applications as mar-ket demand develops. (See Figure 1.)

BANdwidTH: THE CAPACiTY TO MEET CusTOMEr dEMANdHigh-definition video is the most obvi-ous contributor to increasing demand for bandwidth, but there are other fac-tors as well. Internet access is requir-ing more bandwidth, because video is increasingly streamed over Internet connections. And with the widespread popularity of social networking Web sites, upstream as well as downstream bandwidth requirements are increasing. Now that Blu-ray camcorders are readily available, even amateur videos posted to social networking sites will increasingly move to high definition.

A projected timeline for the migra-tion from standard-definition video to

Home networking is an important area that many service providers find difficult to bring under the planning umbrella. Many home networks today use Ethernet routers, wired and wireless, to connect computers, printers and other devices. One obstacle in fully realizing the potential of home net-working is that relatively few homes are properly wired for networking.

structured wiring, in which a centralized panel connects outlets in multiple rooms with Cat 5 and coaxial cable for computer networking and cable TV services, is becoming common in up-market homes. Many build-ers today offer it as an option, and in some master planned communities it is mandatory. Still, most existing homes do not have structured wiring, and several standards organizations have emerged to use existing home wiring for networking video and data. For example, the Home Phoneline Network-ing Alliance (HomePNA or HPNA) defines networking over telephone wir-ing and coax, MoCA (Multimedia over Coax Alliance), defines standardized technology for coax, and the HomePlug Powerline Alliance (IEEE P1901) is finalizing standards for Broadband over Powerline (BPL), in which data can be transported within the home over existing power wiring.

Wireless networking eliminates much of the concern about running cables, especially in existing construction. However, results vary depend-ing on distance and the need to pass the signal through walls. Networking products are already available using IEEE 802.11n, a high-performance solu-tion for wireless in-home networking. UWB (ultra-wideband) is an emerg-ing technology that promises lots of bandwidth at low power levels. And recently, a group of vendors including Amimon, Hitachi, Motorola, Sam-sung, Sharp and Sony announced the WHDI Consortium, which promotes wireless video connectivity via a standardized interface that will allow any source in the home to connect to any display.

Concerns today with in-home networking include:

• The lack of structured wiring in all but the newest homes. Adding struc-tured wiring using Cat 5 and coaxial cables in an existing residence can be done, but expense is an obstacle.

• The ability to transport content throughout the home.• The conflict between consumers’ desire for content portability and con-

tent owners’ concerns with the security of their intellectual property.

According to The Broadband Group’s Brian Hills, “It is important that new homes today be wired with multiple service provider types in mind. We developed our own ‘Residential Pre-Wiring Guidelines,’ which have been adopted by many master-planned communities in the US. With a standard in place, communities can be confident that the homes built there will sup-port any type of communications infrastructure, including fiber, copper and HFC.”

Home NeTwoRkiNg


TECHNOLOGY

multiple channels of high-definition video over time is illustrated in Figure 2. (This scenario assumes in-band IP video as provided by an FTTx network.)

Improvements in compression tech-niques will partially mitigate the effect of the HD onslaught. With MPEG-2 compression, two streams of SDTV re-quire about 8 Mbps, while two channels of HDTV require between 22 and 24 Mbps. MPEG-4 and its derivatives are reducing bandwidth requirements. For example, today HD video streams of 8 Mbps are common, and over the next several years we can expect to see the minimum HD bandwidth requirement down to around 6 Mbps. But quoting minimum figures is risky because action programming – especially sports – and larger-screen TVs generally dictate us-ing less compression to keep the video quality at acceptable levels. Realistically, high-quality HD streams are expected to require up to 12 Mbps.

TECHNOLOGYAlthough fiber-to-the node/neighbor-hood (FTTN), fiber-to-the-curb (FTTC) or hybrid fiber-coax (HFC) networks may be able to meet today’s bandwidth demands, new applications have solidi-fied the position of fiber to the premises

(FTTP) as the only true future-proof solution – particularly in reference to outside plant configuration. The benefits of FTTP are so compelling that many developers of master-planned communi-ties insist on FTTP architecture to cre-

ate “connected communities.” Fiber in-creases the value of individual homes by almost $5,000 (according to estimates by RVA LLC) and thus enhances the value of the overall development.

Gigabit Passive Optical Network (GPON) technology, which is being widely deployed today, has the advantage of a passive optical network architecture and, most important, is governed by in-ternational standards (ITU, or Interna-tional Telecommunications Union). Us-ers of standards-based technologies such as GPON can expect an orderly progres-sion to higher performance. Although today’s 2.4 Gbps downstream/1.2 Gbps upstream GPON networks can support bandwidth demands for the foreseeable future, work is in progress at the ITU for 10 Gbps and wavelength-division multi-plexing (WDM) variants of GPON.

Another standards-based fiber optic access technology is EPON (Ethernet PON), for which the IEEE is also de-veloping the next generation. The third standards-based technology being de-ployed is active Ethernet, or point-to-point Ethernet.

GPON actually is more efficient in transporting Ethernet traffic than

Figure 1: Evolution of service provider offerings from triple play to differ-entiated, expanded services that meet specific needs of the community.

Figure 2: iP Video bandwidth required to the home (Courtesy, The diffu-sion Group).

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TECHNOLOGY

EPON, because it embodies GEM “GPON Encapsulation Mode,” a means of packet transport that requires less overhead than native Ethernet and also supports the transport of TDM traffic in its native format. GPON has other ad-vantages as well, including a standard-ized method of transporting RF video.

The GPON standard, like the BPON standard before it, incorporates a 1550nm downstream wavelength over-lay intended to carry RF video signals from an RF video headend. This tech-nology has obvious advantages for cable TV operators, including telcos that have merged with cable TV companies. And when the RF headend is reasonably up to date, operators understandably want to preserve their investment.

rF MiCrONOdEs ANd rFOG “RF over Glass,” or RFOG, appears at first glance to be just another name for the 1550nm RF video overlay provided in BPON and GPON architectures. RFOG is being studied by the Society of Cable Television Engineers as a future standard, and some current RFOG im-plementations do in fact adopt a wave-length plan matching that of BPON and GPON – 1550nm downstream and a 1310nm or 1590nm upstream/return path for enhanced services. This

emerging category of products promises to further reduce the cost of deploying fiber to the premises in CATV HFC ar-chitectures.

For example, Hitachi’s Node+Zero micronode is a universal device that passes DOCSIS and CMTS data be-tween the customer premises equipment and the headend over fiber. The forward and return path is transparent and com-patible with any manufacturer’s CPE and headend equipment. The micronode provides the forward and return optical/electrical conversion and transmit/re-ceive functions necessary to deliver the content to the premises via fiber and

distribute within the home over the ex-isting coax wiring. The return path ter-minates at a receiver at the headend and may contain video control commands (VoD, PPV), CMTS data, or IP voice.

If the PON distance specification (20km from the optical line terminal in the central office at 32-user splits per PON line) is followed when deploying an RFOG solution, PON technology can be overlaid on the RFOG outside plant at a later date, providing additional band-width on a schedule that supports a “pay as you grow” approach. Because no opti-cal network terminal (ONT) is needed at the customer premises for the initial de-ployment, the service provider can install fiber to the premises at a lower cost with RFOG than with a full PON network. If the service provider elects to keep video on the RF plant, a data-only ONT can be used for a subsequent GPON imple-mentation, allowing the full GPON bandwidth to be used for data.

APPLiCATiONs: CrEATiNG CusTOMEr LOYALTY ANd iNCrEAsiNG rEVENuE sTrEAMsThe basics. Triple play services are the foundation for most service offerings. In today’s competitive environments, you must provide all three – voice, video and data. For example, if you provide only voice and data, you can reasonably pre-dict an erosion of the existing subscriber base if a cable TV operator introduces a bundled triple play offering.

Many types of service providers have entered the triple play business: cable TV

Figure 3: rFOG micronode enabling fiber upgrades for CATV companies.

Figure 4: A typical headend with GPON equipment and video equipment.

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operators providing triple play over their existing HFC networks; ILECs and their CLEC subsidiaries; “pure” CLECs; and hybrid organizations such as merged telco and cable TV operators.

Service providers may already own, or can build, the facilities required to provide triple play services, for example:

• Class 5 TDM switches or soft-switches for voice services.

• Routers and servers for Internet ser-vices.

• Headend equipment (RF, IP or both) for video.

Video services. For a service provider not already in the video business, gear-ing up to provide services can be daunt-ing. GPON technology offers plenty of bandwidth to support the move to IP video, including multiple HD channels. IP video is inherently a two-way service, allowing “upstream” control for users of functions such as video on demand and pay per view.

Service providers with existing RF video cable TV plant can use the 1550nm overlay for the RF content, leaving the full downstream capacity for data. However, they need a solution for the RF return path. An external or internal module can provide a 1590nm

upstream wavelength so the RF return path content does not interfere with the 1310nm wavelength that transports the upstream data from the ONT.

However, the accelerating demand for HD services may be beyond the ca-pability of older RF plants. Some ser-vice providers choose to use existing RF plant to deliver “basic” cable services, while building new IPTV headends to deliver HD and premium channels. In this case, the return path is part of the 1310nm upstream data channel.

If the facilities costs for these video solutions are too high to provide the desired ROI, do service providers have other options? For projects where the numbers of subscribers do not justify the expense of a video headend, several options should be considered:

• Hosted video services: The hosting service provider owns the video

headend and has distribution rights to programming. Although some expense is required for local access channels and for local equipment to receive and distribute the services, a hosted video solution is less costly than a complete headend.

• Service provider cooperatives: In some locations, cooperatives provide an array of services – including video – to smaller independent telephone companies. An example is Iowa Net-work Services (INS), which serves 147 independent telcos in Iowa.

• Satellite-based video service: Special-ized satellite receiving technology allows smaller service providers to deploy their own satellite-based IP video headends for an acceptable cost. This service, available as a turn-key solution, simplifies deployment and supports custom channel line-ups depending on local need. (See example in Figure 5.)

Beyond the triple play. The appli-cations that can be supported over an FTTx infrastructure are virtually un-limited: remote utility management, security and surveillance have been suc-cessfully implemented in multiple cases. In fact, the ultimate success of an FTTx project can often be determined by the operator’s ability to use the infrastruc-ture for applications and services well beyond the proven “triple play.” But, go-ing back to the “know your customer” concept, not every application fits ev-ery FTTx deployment. Here are a few examples of applications that have been deployed successfully:

Community portal. Most ISPs pro-vide a user portal that gives the com-pany a “face” and enables it to remain in touch with its subscribers. Similarly, a community portal that subscribers

Now that Blu-ray camcorders are readily available, even amateur videos posted to social networking sites will increasingly

move to high definition.

Figure 5. Satellite-based video solution available from Falcon IP/Complete of Malden, Missouri.


TECHNOLOGY

regularly use to access services and com-munity activities can be a major asset and encouragement for residents to fully utilize services and become firmly con-nected to the community and loyal to the service provider.

Forest City’s Stapleton, a major master-planned community developed on the site of Denver’s original Staple-ton airport, uses a portal created by In2 Networks, a partner in the telecom planning efforts at the community. The Stapleton portal contains local in-formation including events, programs, weather, “yellow pages” and classifieds, providing a user-friendly, content-rich community resource.

Utility information management. Utility information management en-compasses far more than automated meter reading. Carina Technology of Huntsville, Alabama, is a provider of advanced utility information solutions. Carina CEO Jay Newkirk remarks, “Awareness of the need for a moderniza-tion of the electric grid is gaining mo-mentum. Broadband networks such as FTTH are the ideal platform to truly implement solutions in real time – to-

day.” Real-time functions such as the ability to remotely turn services on and off, managing prepaid electricity service and peak demand power management can be enabled over an FTTP infra-structure. Utilities have found that these and other applications represent a major opportunity for operational expense re-duction and quicker payback on FTTP.

(See “Broadband and the Smart Grid” in this issue for more information about Carina’s approach to utility information management.)

The diagram in Figure 7 shows the ideal configuration for a Smart Grid-enabled utility.

Other immediate advantages that automated, connected utility manage-ment can offer include:

• Cost reduction: Reduce bad debt; re-duce operational cost while improv-ing efficiency.

• Revenue generation: Dynamic time-of-use, real-time and critical peak pricing management.

• Increased customer satisfaction: Edu-cate customers on power usage; pro-actively respond to customer service issues in real time.

• Green initiatives: Empower custom-ers to manage usage and conserve ef-fectively; reduce wasted energy and reduce peak loads.

When the service provider is also a power utility, these benefits have a sig-nificant impact on the bottom line, over and above the triple play services offered. Alternatively, when the service provider is not a utility, collaboration with the local utility can add significant value to FTTP.

Security/surveillance. The FTTx infrastructure is an ideal platform for

Figure 6: Example of community portal (courtesy of The Broadband Group, Community of stapleton, Forest City Enterprises inc.).

Figure 7: utility management configuration (Courtesy Carina Technology)


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both traditional monitored security sys-tems and IP security systems that use the IP path to the home, rather than tra-ditional “digital dialers,” for intrusion and line detection surveillance. Another application is video surveillance, which can be implemented with video cameras in public areas, on residential streets and in commercial areas, and monitored within the community or remotely.

Applications on the horizon. Other specialized applications include user-cre-ated content (social network platforms

and their derivatives) and telemedicine. These and many other will become an increasingly large part of new band-width demand.

CONCLusiONFiber-to-the-premises architecture is the future of landline-based communica-tions. Service providers ranging from telephone companies to cable TV op-erators are implementing this technol-ogy to provide better service to their subscribers, and to meet new competi-

tion and the changing communications landscape. FTTP technologies offer the flexibility and performance to accom-modate the requirements of almost any service provider and size of deployment.

A view from the subscriber side, along with attention to the planning, design, construction and operation of the network will solidify customer loy-alty, the ultimate determining factor for success. BBP

About the AuthorPete Westafer is director of marketing at Hitachi Telecom (USA) Inc. Hitachi is a leading global telecommunications ven-dor, offering GPON FTTx solutions com-bined with RFOG solutions for RF video delivery applications. The company offers Source-to-Subscriber solutions that pro-vide a range of services and revenue-pro-ducing applications based on the GPON platform. Pete can be reached at 770-797-2518 or [email protected].

The accelerating demand for HD may be beyond the capability of older RF plants.

Some service providers use RF plant to deliver “basic” cable services, while building

new IPTV headends to deliver HD and premium channels.

Documents

TECHNOLOGY The New Broadband Reality€¦ · President, Tom Reiman, “Defining and then building an FTTx network is a complex but critically important un-dertaking. We have seen