Attacking the competitive Norwegian FTTH-
market with GPON –
Telenor strategy and experience so far
Project Manager, Jan Helge Høgvoll
Optical Networks, Technology, Telenor Norway
FTTH Council Europe Conference
24th-25th February 2010, Lisbon
- Telenor -A global provider of telecommunications
services
* 1
00 %
fig
ure
s -
all c
om
panie
s p
er
Q2 2
009
14 Countries
172 M mobile subscribers(*)
Fixed Service Customers in the Nordics
Broadband 1,7 M
Telephony 1,9 M
Broadcast 2,0 M
Mobile 7,0 M
A leading Nordic position in
mobile, broadband
and TV services
Agenda
• Market situation in Norway
– Why enter the FTTH segment
• Services and status on fibre roll-out
• Technical solution
• Outside plant – New solutions
• Challenges
• Conclusion
Content
Status FTTH september 2009
• Norway has the largest number of subscribers on FTTH in Europe(*)
• Telenor – so far a small player within FTTH in Norway
– Appr. 7000 customers EOY 2009
Source: FTTH Council Europe
(*) Sverige – Large amount of FTTB
Regulations in Norway
• Cu:
– LLU and Sub-loop LLU
– Telenor also offers:
– Wholesale IP
– Wholesale DSL
• Coax:
– No regulatory unbundling or demands for opening up networks
• Fibre:
– No regulatory unbundling or demands for opening up networks
Competition in Norway
Fixed Telephony
0
500000
1000000
1500000
2000000
2500000
H10
1
H10
2
H10
3
H10
4
H10
5
H10
6
H10
7
H10
8
H10
9
# o
f s
ub
sc
rib
ers
Cable/Other
VoIP
PSTN/ISDN
Internet Access
0 %
10 %
20 %
30 %
40 %
50 %
60 %
70 %
80 %
90 %
1H05 1H06 1H07 1H08 1H09
Other
Cable
Fiber
xDSL Source:
Norwegian Post and
Telecommunications Authority
Television
7 %10 %
35 %
47 %
Fiber
DTT
Sattellite
Cable TV
The choice of fiber
In the Norwegian market a winning concept is 3 play over FTTH. Whether there is a need for broadband bandwidth or not – the customer wants fibre
In the Norwegian market competitors offer some of the best 3 Play solutions in the world
Telenor responds this competition with 3 Play:
- Docsis 3.0 in areas where Cable TV network easily can be upgraded
- VDSL2 in selected areas
- FTTH in areas where upgrade of infrastructure is necessary and in selected areas. Take rate is key.
• Market situation in Norway
• Services and status on fibre roll-out
– Which services do we sell?
• Technical solution
• Outside plant – New solutions
• Challenges
• Conclusion
Broadband services over fibre (FTTH)
– In the ramp-up phase Telenor has sold FTTH with Broadband and IP-Telephony.
– First customer established 4Q/08
– Sale of IPTV started this week, pilot test for several weeks in live network
Capacity for IPTV not included in this capacity
Technical solution scales to significantly higher capacities and potentially to address other markets.
Fibre Based Internet Access Services
€55
€68
€173
• Market situation in Norway
• Services and status on fibre roll-out
• Technical solution
• Outside plant – New solutions
• Challenges
• Conclusion
Telenor’s choice of GPON
• Telenor’s strategic choice
– Use of fibre in the access network
• Possibilities with GPON
– Reuse of infrastructure
– Lower OPEX
– Possible capacity for customer - upto 1Gbit/s
• Standardised solution - ITU-T
– Increasing volumes gives technological development and cost reductions
– Future proof
Optical splitter
Upto 7168 cust/ rack
Telenors broadband platforms
• Same CPE-equipment for all accesses
– Remote Gateway – RG
– Set Top Box – STB
• Same concept for the service independent of the physical access
– Simpler development of new services
– ”Any service, any port”
• Simpler logistics
Home Network
ONT
RG
TEL
PC
STB
TV
RG
TEL
PC
STB
TV
RG
TEL
PC
WiMax
IP net
ONT
RG
TEL
PC
STB
TV
Example of a home cabinet solution in customer’s home
How does IPTV influence the need for capacity in the network ? – A first indication/example
• Traffic on ” a few” pilot users of IPTV approx 500 HSI customers on OLT
– In busy hour, most of the traffic is multicast
– Upto 5x cap. In Busy Hour compared to DSL
– Symmetric capacity compared to DSL
• A lot of capacity for further growth with GPON technology
No TV – OLT1 Incl. TV – OLT2
8 km 15 km 20 km0 km
12 km
1:641:32
CO
RU
1:32
Marginal
RU
RU
RU
Network structures – OLT Node Plan
• Pro-active planning of OLTs for FTTH
• Purpose
– Case study – challenge traditional Cu-based planning
– Build competence on fibre planning
– Create target network
– Create tools and databases for Sales & Planning
• Market situation in Norway
• Services and status on fibre roll-out
• Technical solution
• Outside plant – New solutions
• Challenges
• Conclusion
Sub ducts in existing ducts
New aerial
solutions
New cabinets
Micro trenching
Micro ducts
New documentation system, interfacing old systems
• Market situation in Norway
• Services and status on fibre roll-out
• Technical solution
• Outside plant – New solutions
• Challenges
• Conclusion
Challenges Sales first – then build
•Plan •Build •Deliver•Sell•Choose area
All processes must be revised, all information flow is altered
~ 160 competitors
ONT
RG
TEL
PC
STB
TV Many new boxes with new services handled in several new and legacy process and information systems
New techniques and components,
this is not copper!
Ethernet based Home Networks, QoS, WAF?
Many local competitors
Challenges
- How will the regulatory framework evolve?
- Broadband vs. Super broadband
- GPON
- Interoperability between vendors of OLT and ONT.
- Co-existence between NG-PON and GPON in the same PON
- Significant cost reductions in technology and infrastructure solutions for FTTH.
- Cooperative housing/High rise buildings
- Public willingness to try out new solutions
- Take rate is essential for the Business Case
• Market situation in Norway
• Services and status on fibre roll-out
• Technical solution and network design
• Infrastructure – New solutions
• Challenges
• Conclusion
Conclusion
• Significant competition between service providers of broadband and 3P-solutions
– In Norway in particular, within FTTH
• Telenor has established the technology, systems, processes and competence to deliver FTTH
– We are now at the start of next generation infrastructure
• Need for a continous improvement of technology, cost reduction and competence within fibre in the time to come
We’re here to help!