Telenet Network Improvements

8/10/2019 Telenet Network Improvements

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Investor & Analyst Conference

Technical Presentation

Jan VorstermansMechelen - May 13, 2008


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Agenda

The current network

The challenge

The actions

Cable versus DSL

Research & Standardization

Capex

Conclusion


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The current network

Telenet network footprint

Homes passed per km2


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Telenet network infrastructure

5 Switch Stations

The 3 main levels of the Telenet network

47 Head Ends

2255 Optical Nodes

1400 Homes per Node


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Telenet HFC network

10,000 km optical fibre - 52,000 km coaxial network


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Telenet HFC network

10,000 km optical fibre - 52,000 km coaxial network

Average distance customer to optical node: 1.5 km


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Towards an all IP network

Focus is on the HFC Aggregation


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The challenge

Bandwidth needs are on the rise

Strong natural traffic growth due to richness of content (video)

Strong RGU growth

n Strong VOD growth

Assume a

constant

increase of

1.5 x every year

Average bandwidth per user


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Maximum bandwidth trend

for data modems

Past 25 years also show a consistent 1.5 x increase

every year

Can we

extrapolate this

trend into 2016?


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Bandwidth needs and solutions

Higher upstream speed

Higher Internet speed,

more iDTV channels

Long-tail and community-

based content

Upgrade upstream

spectrum

Increase digital capacity

with factor 3

Switch from broadcast to

on-demand (streaming)

Needs Solutions


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The actions

How to create more bandwidth

Increasing the bandwidth, optimizing use of the spectrum

Former upstream (Return) spectrum: 5-25 MHz

For Internet and VoIP Telephony

Former downstream (Forward) spectrum: 87-450 MHz

For ATV, iDTV, Internet and VoIP Telephony


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Action 1:

upgrading the existing technology

Increasing the modulation scheme from 64 to 256 QAM

The more powerful the modulation algorithm, the more bits per Hertz you can add

A better use of the existing spect rum: + 200 Mbps

Al ready f inished

Result

Status

0.2 Cost/HP


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Action 2:

expanding the existing spectrum

ExpressNet/Mach 3 phase 1:

expanding the upstream spectrum

Increase of the upstream spectrum to 65 MHz

Started in 2005, completed

Result

Status

40 Cost/HP

Before After


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Action 2:

expanding the existing spectrum

Mach 3 phase 2: expanding the downstream spectrum

Increase of the downstream spectrum to 600 MHz

Started in 2007, completed by mid 2009

Result

Status

16 Cost/HP

Before

After


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Action 4:

more efficient use of bandwidth

By introducing Euro Docsis 3.0 Channel Bonding

Downstream up to 200 Mbps, upstream up to 120 Mbps

Field trial second half 2008

Result

Status


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Action 4:

more efficient use of bandwidth

By introducing Switched Digital Broadcast

Result Expected gain: 200 Mbps, unlimited number of channels

Field trial second half 2008Status

4 Cost/HP


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The bandwidth race

Cable versus DSL

Cable widely outperforms all DSL technologies

Cable =shared medium,

separate spectrum

Watching TV does

not slow down your

internet!Spe

edinM

bps

Distance between DSLAM an CPE in km


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Determine the optimal roadmap for

extending cable network capabilities

to meet future service demand

Research & standardization

Cable Europe

Cooperation & standardization

Linked to CableLabs


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Capital expenditures

Capex-to-revenue ratio

Continued downwards trend in

cost per install

Increasing impact of STB Rentalstrategy

Network infrastructure capex to

sustain RGU growth & product

leadership

Continued network programs

Capex-to-revenue ratio down to 22.7% in 2007

and expected to decrease further

Support capital

Upgrade/rebuild

Line extensions

Scalable infra

Commercial

iDTV rental

CPE

2004 2005 2006 2007

50

100

150

200

0

20.6%

25.2%24.5% 22.7%

As % of revenue


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Network upgrade programs

Network upgrade programs remain stable and f it

with long-term Capex guidance

Support capital

Upgrade/rebuild

Line extensions

Scalable infra

Commercial

iDTV rental

CPE

2004 2005 2006 2007

10

40

60

80

0

2008

20

30

50

70

90

100


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ConclusionTelenet is ahead of bandwidth evolution

The HFC network architecture

Bandwid

thp

erh

omesp

ass

ed

Time

superior to DSL

speed independent of distance enables rapid expansion

Allows gradual evolution to Hybrid PON

Documents

Telenet Network Improvements