Best Network Practices for DSL Deployment

Phylogy Solution Whitepaper: Line Conditioning for Accelerated xDSL

TripleStream Line Conditioner September 2009 Page 1 of 36

A Solution Whitepaper

The TripleStream® Line Conditioner accelerates attainment of ARPU & ROI goals of those wireline carriers

caught between the exorbitant cost of FTTH and the frustration of inadequate VDSL2 performance.

Many carriers are concerned that cost-effective service delivery options for IPTV are simply not available

today. Phylogy offers an important alternative, proven capable of bridging premium services to

subscribers beyond the reach of today's VDSL2 deployments while avoiding the high cost of fiber.

When TripleStream® is deployed as a standard-practice network engineering method for conditioning the

access loop, it can triple aggregate bandwidth capacity across xDSL distribution areas at one-third less

cost than present methods of operation (ref pg. 35).

Phylogy Corporate Offices 2350 Mission College Boulevard Suite 400 Santa Clara, CA 95054

866-PHYLOGY (866-749-5649) www.phylogy.com email: [email protected]



Table of Contents _____________________________________________________________

Executive Summary pg 3

I. The Challenge pg 4

II. The Solution pg 5

III. Technology Brief pg 6

IV. How TLC Line Conditioning Works pg 8

V. Service Applications Across the Network pg 11 Leveraging Remote Terminal Assets to Extend Service Revenues pg 12 Extending Revenue Services from the Central Office pg 13 Deploying New RT-Fed Subscriber Service Areas pg 14

VI. Installing TLC Nodes into the Network Flexible Speed-Splice Options pg 16 Deploying TLCs Into Existing Aerial Splice Cases pg 17 Access to Buried Plants Using Standard-Practice Procedures pg 18 Upgrading Existing Splice Pedestals pg 19 Co-Locating with Existing Cross-Connect Cabinets pg 19 Adding New TLC Cabinets to the Network pg 20 Design Rules for Placing TLC Nodes in the Loop pg 21 Utilizing Existing Network Splice Points for Optimal TLC Placement pg 21

VII. TripleStream® Line Conditioner Products Line Cards pg 22 Line Card Testing pg 23 Enclosures pg 24

VIII. Planning Options for Maximizing xDSL Network Performance Capacity, Transport Efficiency, and Equipment Utilization pg 25 Scaling Extended Reach into Expanded Distribution Area pg 27 Comparing Aggregate Bandwidth Augmentation Across a DA pg 28 Key Advantages for the Carrier pg 30

IX. TLC Network Management Strategy pg 31

X. An itemized cost-comparison business case pg 32

XI. About Phylogy pg 35

XII. Acronym Reference pg 36



VDSL2 Performance Shortfall

Executive Summary Telcos, equipment suppliers, and chipmakers originally expected VDSL2 distribution areas to reach 4.5 to 5 kft for 25 Mbps IPTV services. But the telco industry has discovered over the past couple of years that variables in the access network have made that goal unrealistic, and HDTV-quality reach has been dialed back 30% within the last 18 months based on real-world experience in the access plant. This reach rollback has then driven IPTV deployment costs higher and has left “customers willing to pay” either under-served or un-served.

While the majority of US IPTV service is currently deployed via ADSL2+ to serve SDTV out to 8 kft, many telco's also deployed DSLAM RT's using VDSL2 to serve HDTV IPTV based on a 4-½kft design rule. Having now dialed back that design rule to a field-proven realistic 3 to 3.5 kft, these RTs are shelved with excess VDSL2 ports that cannot reach their anticipated service range.

This excess DSLAM capacity, now underutilized, represents a stranded investment that can never realize the original ROI goals without a change in strategy.

The other fallback solution to the VDLS2 shortfall – pair bonding – has also uniformly proven to be a non-performer according to major US carriers, citing a shortage of spare pairs in the network hindering mass deployment. In addition, the added crosstalk can cause the aggregate demultiplexed bandwidth from a bonded pair to be less than 70% of the anticipated.

Alternatively, carriers who eschewed VDSL2 for ADSL2+ are limited to Standard Definition-only IPTV offerings, leaving them vulnerable to cable and satellite competition, and short of their revenue goals for HDTV subscribers. HD has now penetrated over 40% of American homes, and the prospect of an xDSL access network limited to SDTV will never deliver the revenues and ROI that are mandatory for 21st Century telco business models.

Carriers are now faced with having to further deploy un-planned additional RT investments to make up for this shortfall in VDSL2 performance. They must match cable competition, meet the demand for HDTV, and to achieve their revenue targets for ARPU (Average Revenue Per User) approaching $100 for bundled triple play services.

Phylogy is solving this challenge with a rapidly-deployed, affordable, and comprehensive networking improvement solution that directly improves the carriers’ ability to more profitably compete for premium service subscribers.



IPTV’s share of the overall pay-TV subscriber base will grow from 3% in 2008 to 14% in 2013

at the expense of cable TV’s share, which will decline from 76% to 61% over the same period, according to a new forecast by Pyramid Research (www.pyr.com). “IPTV operators continue to make strong strides in gaining pay-TV

market share,” comments Özgür Aytar, Senior Research Manager, Broadband & Media. “Pyramid Research estimates that IPTV will drive a global total of 9m net subscriber additions in 2008, 40% of which will come from Asia-Pacific region.”

IPTV subscriptions to grow 64 percent in 2008: Gartner September 25, 2008 LONDON (Reuters) - Worldwide subscriptions to Internet-based television platforms

are on track to reach 19.6 million subscribers in 2008, a 64 percent increase, according to analysts at Gartner. Revenue from worldwide Internet protocol television is forecast to reach $4.5 billion, up 93.5 percent from a year earlier, with Western Europe boasting the largest number of IPTV subscribers and North America the largest market for IPTV revenue. It forecast that 1.1 percent of households worldwide would be using IPTV in

2008, and expects that to rise to 2.8 percent by 2012.

25% of U.S. Households Have at Least One HDTV Set: Survey April 24, 2008 Los Angeles - A new survey of U.S. consumers found that 25% of U.S. households, or 28 million, now have at least one HDTV set, and that 5.5 million households purchased an HDTV set for the first time during the 2007/2008 holiday and Super Bowl season. Conducted by Frank N. Magid Associates, the survey additionally found that some 3 million homes added a second HDTV set during this same time frame, making for a total of nearly 10 million multiple HDTV set homes.

I. The Challenge ● Mill ions of telco subscribers have low DSL performance or are out-of-range;

● Existing DSL service limitations can not effectively compete against cable;

● Telco’s are missing their ARPU goals for premium services including IPTV

The number of unserved & underserved DSL subscribers are higher than expected using present DSL methods, capping the ability to economically expand revenues and making the penetration of new market share more costly than anticipated. Expanding service to these unreached areas is taking too long, often not being able to deliver the HDTV quality subscribers are demanding, and leaving telcos unprepared to compete aggressively against cable.

Finally the expansion of DSL service using present methods of operation (PMO) is too complicated. This unnecessary complexity in network engineering and installation increases the cost of xDSL extension up to 30% higher than required using line conditioning, thus limiting the revenue, ROI, and market share goals of telcos worldwide. The presence of strong premium-market demand (e.g., IPTV subscribers willing to pay for quality HDTV service) is well documented. But telcos are lagging in their ability to grasp this market because they are needlessly struggling with sub-optimal xDSL network performance.



OPTMAL DESIGN PRACTICE for ENGINEERING xDSL NETWORKS

PRESENT xDSL EXPANSION METHODS (PMO)

TripleStream “BEST PRACTICE”

SLOW DEPLOYMENT 12 to 18-month delay to plan and deploy RT DSLAMs

versus six weeks for Line Condit ioners

ACCELERATE DEPLOYMENT 800% TO DELIVER FASTEST TIME-TO-PAYBACK

HIGH COST New RT / DSLAMs require power, new f iber back-

hauls, civi l engineer ing, pedestals and new copper legs for re-homing

REDUCE DEPLOYMENT COSTS 34%

LOW BANDWIDTH Even new DSLAMs are not capable of del iver ing

maximum DSL bandwidth across CSA

INCREASE AVAILABLE BANDWIDTH IN THE ACCESS LOOP UP TO 300%

LOW ASSET UTILIZATION RT DSLAMs not ful ly loaded due to reach l imitat ions

- DSL Network is Under-Uti l ized

FULLY LEVERAGE ALL EXISTING DSL ASSETS TO MAXIMIZE BANDWIDTH CAPACITY & ROI

II. The Solution

Phylogy is delivering a proven technology that maximizes the rate and reach of DSLAMs and modems. This paper demonstrates how TripleStream Line Conditioning (TLC) is:

● A more economical, efficient, and faster technology option than adding costly new RT / DSLAMs for extending reach and bandwidth;

● A seamless access loop technology that is fully compliant with existing telco operations and all DSL standards; and

● A fully planned deployment solution delivering rapid installation that makes TLC the fastest time-to-market asset with fastest time to payback of any xDSL expansion option.

Conditioning the Loop When TripleStream® is deployed as part of standardized network design & engineering practice, it can triple aggregate bandwidth capacity across xDSL distribution areas at one-third less cost than present methods of operation ($353 vs. $533 per subscriber line – see section X). Thus we are suggesting that TLC offers the wireline carrier an optimal design practice for engineering maximum ROI from all existing and planned xDSL network assets.



TripleStream® Line Conditioning (TLC) is a non-disruptive, fully-compatible xDSL technology proven effective at leveraging the performance of all of today's xDSL chipsets and networks. Line Conditioning bridges the gaps in xDSL performance to help the wireline carrier meet their core business goals:

● Fully realize VDSL2’s promised performance to approach original design rules;

● Improve the efficiency and utilization of existing DSLAMs housed in RTs;

● Enhance legacy ADSL installations to approach the performance of ADSL2+;

● Leverage CO-fed xDSL plants to serve 35% deeper into the CSA and help minimize the need for costly RT installations; and

Applying this ubiquitous line conditioning method across the entire xDSL service spectrum shows that provides a substantial revenue impact, resulting in improved service availability for all four revenue classes:

● Data-Only (256Kb – 1.5Mb)

● Hi-Speed Data + VoIP (3 – 7Mb)

● IPTV for Standard Def (8 – 15Mb)

● IPTV for Hi-Def (16 – 30 Mbps)



III. Technology Brief on the TripleStream® Line Conditioner (TLC®) Phylogy’s ability to improve xDSL reach and bandwidth is achieved using a simple line-insertion device which auto-calibrates, requiring no field or EMS setup. TLCs are installed using a familiar speed-splice process fully described in section VI. All TLC configurations are line-powered via the POTS 48 volts requiring no external power

supplies. As a ruggedized, field-proven solution, all Phylogy products offer water-proofed, fully-weatherized enclosures requiring no active cooling.

● The TripleStream Line Conditioner is a 4.5” by 7.5” dual-port circuit board using analog components and a patented process;

● The circuit grooms the DSL carrier signal to reduce noise, and conditionally amplify it;

● TLC operates in synchronization with the xDSL chipsets in the DSLAM and modem to learn the exact loop make-up on a line-by-line basis and then auto-calibrates itself to match each line’s characteristics to provide optimal enhancement on a line-by-line basis;

● TLC is transparant to layer 2 and layer 3 techniques, making it compatible with future xDSL coding and compression methods

● TLC only uses 250 mW per line (1/4 watt)

As a true plug-&-play technology, the TripleStream® solution is simple and fast to install:

● TLC is spliced into a service pair approximately mid-loop between the DSLAM and farthest CPE. For our multi-line enclosure solutions, optimal performance is achieved by identifying convenient access points to feeder cables which are midway between the DSLAM and the subscribers’ CPE. Documentation and placement calculators are provided to aid optimal deployment.

● Cabinets for high-volume deployment include cable splicing junction bays and integral cross-connect blocks

● Installation is accomplished with standard craft practices. No additional skills, tools, or training are needed.

● TLC automatically tunes its internal circuitry to compensate for plant quality, cable gauge, and cable length

● The voice signal is passed through untreated, maintaining lifeline service even during power outage



IV. “Conditioning the Loop” How TLC Line Conditioning Works

Optmizing the Power / Spectral Density (PSD) Envelope Operating in concert with all xDSL chipsets used in DSLAMs and modems, TLCs effectively shape the power / spectral density envelope to increase bandwidth rates across a longer-reach of the copper medium. Envelope shaping uses a dynamically tuned circuit and low-power amplification consuming at most only a quarter watt.

Better than Brute-Force Amplification of the DSL Carrier Distinctly superior to all other line conditioning approaches which use a brute-force signal amplification method, the Phylogy approach significantly improves SNR. Other methods actually increase signal noise as they increase signal power, adding more crosstalk within binder groups and thus degrading SNR. Because Phylogy avoids power-hungry amplification, our line conditioning circuits draws only a 1/4 watt compared to the 6watts consumed by competing options. This minimal power draw then provides several key advantages:

► The TLC circuit operates using only the 48v POTS life-line power

► No external power supplies are required

► No added CAPEX to provide external 120V power

► No significant heat generation means no added cooling requirements are needed

► The lack of external power and active cooling, plus our dual-port configuration, enables high-density cabinet deployment.

Improving Bit-Loading Across the PSD Mask, TLCs Selectively Boost PSD Profiles Yields up to 8Mbps Gain Since the higher frequencies in the copper spectrum are most susceptible to noise and attenuation, PSD bit-loading favors use of the lower spectra. Yet Phylogy has developed a proven shema to effectively extend bit-loading across these higher frequencies. Phylogy operates in tandem with all xDSL chipsets to exploit these PSD physics:

► DSL chipsets sense the length and condition of each subscriber service pair and then tunes the gain of its line driver amplifier to optimize gain for that line's length and resistance profile.

► DSL chipsets always profile each subscriber line during initialization by communicating with the subscriber modem. But with a TLC inserted midpoint into this circuit, the DSL chipset in the DSLAM now senses the TLC as the modem.



► During re-initialization, the DSL chipset now characterizes a conditioned service pair as being only half as long as the original modem's distance.

► Now the line driver in the DSLAM's chipset lowers it's gain for that line, sending out a cleaner, lower-noise signal.

► Additionally, the bit-loading algorithm in each DSL chipset now profiles that service pair as a cleaner line and correspondingly loads more data into the higher spectra of the copper medium.

Sending a Higher-Spectrum Signal Farther than DSL Chipsets Can With additional data now re-mapped into higher PSD bins, Phylogy successfully extends the reach of the 2-to-4Mhz bins four ways:

1) PSD shaping induced by TLCs results in DSL carrier noise being up to 6dB lower when it arrives at the TLC node

2) TLCs then apply additional active noise cancellation using common-node rejection to notch-filter RF interference

3) Full-spectrum amplification is then applied using variable DC gain. During initialization, TLCs profile the carrier amplitude received form the DSLAM and apply DC gain to compensate for line loss, optimized on a line-by line basis

4) Selective spectrum amplification is finally applied to further boost the higher frequency PSD bins. Using peaking equalization, the TLC boosts gain on those data-rich PSD bins in the 2-to-4Mhz range of the copper medium.

Typical Reach Extension Delivered by TLCs over 26AWG Copper Below is shown four real-world measurements of in-service DLS extension using TLCs in a 26AWG access loop.



Summary Performance Gain for VDSL2 Combining the cleaner signal transport, higher bit-loading, and intelligent power boost features of TLC, the chart at right plots the 10Mbps bandwidth gain the TLC delivers at 5Kft of reach. Where the VDSL2 performance for HDTV services falls below 25 Mbps at 3.5Kft, the TLC performance assures subscriber satisfaction for HD IPTV services 50% deeper into the distribution area.



V. Service Applications Across the Network Extending IP Service Tiers The primary application of TripleStream® Line Conditioning (TLC) is to optimize access network performance. All classes of revenue services are extended deeper into the distribution area, reaching both the unserved and under-served subscriber. To achieve this objective, TLC technology applies to all xDSL broadband applications within the access network:

● Brings new service to unserved or “dead zone” distribution areas (DAs) ● Boosts reach and bandwidth in existing “underserved” data-only ADSL and ADSL2+ service

areas ● Extends service areas for existing ADSL2+ IPTV installations (standard definition SDTV) ● Extends the service

area for existing VDSL2 IPTV service areas (high definition HDTV)

● Lowers the deployment costs up to 30% for new VDSL2 IPTV service areas (high definition HDTV)

Conditioning the Loop - Two Application Options By providing highly scalable and flexible options for deploying the TLC solution (see section VI), Phylogy enables two primarily different yet highly complementary service applications:

● “Quick-Turn Provisioning” supports on-demand installation of small line-count TLC nodes to boost bandwidth for underserved individual subscribers. Fast, cheap, and easy to deploy, these band-aid installations let you opportunistically protect your subscriber base against competitive erosion and provide revenue-enhancing service upgrades for time-sensitive special projects.

● “Standard-practice network conditioning” engineers the access network using line conditioning across the CSA to support higher aggregate bandwidth capacity and higher efficiency of all xDSL assets. Described as “Best Practices Network Engineering” in Section VIII, this method significantly improves both network performance and utilization of existing xDSL assets including DSLAMs, remote terminals, fiber backhauls, and CO switchports.



How TLC Extends IP Service Tiers A) Leveraging Remote Terminal Assets to Extend IP Service Tiers

TLCs extend all IP service tiers deeper into the DA, providing up to 300% more aggregate bandwidth capacity for the underserved and unserved areas (ref pg. 29). Diagrams (right) show the logical migration of existing xDSL service tiers to a higer revenue-generating capacity using TLCs.

Chart 1) Typical RT/DSLAM installation supporting five tiers of IP services: • HDTV-grade IPTV over VDSL2

• SDTV-grade IPTV over ADSL2+ or VDSL2

• Under-served, VoIP & data-only

• Under-served, data-only over ADSL2+

• Unserved areas in the DSL “dead zone”

Chart 2) Opportunity to upgrade each tier to the next higher revenue catagory, based on the extended bandwidth rates that TLC provides. Chart 3) Installation of four 50-line TLC cabinets and the subsequent boost in bandwidth that each one delivers to support the rapid upgrade of all service tiers. Since present DSL methods create larger-than-expected dead zones, Phylogy makes the penetration of these unserved and under-served markets easier, faster, and cheaper than using the traditional approach of adding more RT/DSLAMs.

Chart 4) Additional bandwidth for each service zone. The revenue increases made possible by the TLC service expansion are significant, effectively doubling the service area for each service tier. Yet these revenue gains are achieved with no CAPEX spending to upgrade the existing xDSL infrastructure. With TripleStream, existing RT, backhaul, and DSLAM are better-utilized to generate a higher return on this legacy investment.



B) Extending Revenue Services from the Central Office For carriers worldwide, and for several in North America, xDSL served from the central office (CO) is common practice. Emerging markets are especially interested in adding or augmenting their broadband infrastructure without using remote terminals (RTs).

The obvious economy of adding new subscribers and upgrading existing ones without the cost of new RTs, backhauls, and DSLAMs is a compelling application for TLCs.

Since TripleStream Line Conditioning applies to all xDSL broadband applications, it is the logical choice for extending and accelerating the broad-scale deployment and augmentation of broadband services across the access network without reliance on costly RT infrastructures.

● Extending ADSL2+ data service by 3 to 5 kft, bringing new service to unserved dead zones;

● Boosting VDSL2 IPTV bandwidth (at 6 Kft reach) from 10 Mbps traditional up to 20 Mbps conditioned to enable High Definition TV service; and

● Extending service area for 25 Mbps IPTV (Hi-Def) from 2.7Kft traditional out to 4 Kft conditioned.



Augmenting CO-Fed Service Tiers Using TLC without New RT / DSLAMS

The Subscriber Service Area (CSA) map below illustrates both the extension and augmentation of broadband applications enabled by a CO-fed TLC network architecture.

By comparing installation requirements for a CO-fed TLC network versus a new remote DSLAM, the cost savings are clearly obvious (and are tallied in section XI). But perhaps more important for some carriers is the ability to rapidly capture new subscribers with TLC’s huge time-to-market advantage of weeks versus months.



TLCs Reduce Dependence on RT / DSLAMs 1)

2)

3)

C) Deploying New RT-Fed Subscriber Service Areas Shown at right is a comparison of the network infrastructure required to provide HDTV service at 26 Mbps to 740 new subscribers.

Step 1) The new customer service area (CSA) that is currently beyond the service reach of existing RT / DSLAMs.

Step 2) The traditional method (PMO) of service extension requiring deployment of three new RT / DSLAMS serving a 768-line CSA.

Step 3) The use of four 96-slot TLC cabinets plus one new RT / DSLAM serving the same 768-line DA.

● Using DSLAMs without line conditioning limits the reach of VDSL2 service for HDTV to 3.5 kft or less, requiring three new RTs with pads, cabinets, power, backhaul and 280-port DSLAMs to serve the new 740-subscriber area.

● By adding four 192-line TLC cabinets, a single 768-line DSLAM can service the entire CSA.

● A cost-itemized comparison including hardware and labor is provided in section X, entitled “Business Case for TLC”



One to 192 lines

per TLC enclosure

VI. Installing TLC Nodes into the Network Using “Speed Splice” Solutions

One-Day Installation Turns Up 100+ Homes Phylogy offers a fully-documented field installation plan with scalable options to accelerate xDSL expansion for any access network configuration. Abundantly detailed to match specific needs, this full suite of speed-splice options makes TLC the fastest time-to-market and fastest time to payback of any xDSL expansion option.

Full Range of Flexible Speed-Splicing Options TLC line cards are deployed using Phylogy’s speed-splice enclosures which range from single-line packages to 192 line metal cabinets. All enclosures are simply spliced into the telco cable, using industry-standard splice modules. These simple snap-fit connections – such as 3M’s™ “MS²™” splice modules – are all that are required to install the necessary signal and power connections to Phylogy’s TripleStream Line Conditioners.



Phylogy Pedestal Option for 5- to 30-Port Aerial Splice Applications

Charles CPLS PedLock shown

Pole-Mounted Options Support1 to 30 Ports of Line Conditioning

A) Deploying 1, 5 and 20-Line TLCs Into Existing Aerial Splice Cases For small applications serving a few households, TLCs can be conveniently mounted adjacent to aerial splice junctions. Pole-mounted options include:

● Single-line metal enclosures

● 5-slot or 10-slot weatherized polycarbonate housings featuring bolt-on brackets

● Metal or polycarbonate pedestal closures containing either or both of the 5-slot and 10-slot housings.

These pole-mount options can be quickly hand-spliced using traditional Scotchlok™ splice modules. Where existing “MS²™” splice modules are available in the aerial splice case, the 5-slot and 10-slot enclosures can also be supplied with quick-connect MS² pigtails.

Phylogy’s new dual-port TLC line cards enables double the enclosure capacity for improved economy. For example, the 10-slot case can be upgraded to serve 20 subscribers with no change to the enclosure itself.



Typical Quick-Connect Splicing Feature Found in Most Splice

Pedestals Used in Buried Plant

1)

2)

3)

4)

B) Rapid Access to Buried Plants Using Existing Splice Pedestals and Standard-Practice Quick-Splice Procedures

By definition, splice points are broadly available across all distribution areas. These provide easily-accessible junction points for speed-splicing TLCs wherever needed. Since the splicing tools and skill set are part of every telco’s standard-practice procedures, insertion of TLCs is a rapid, low-cost process requiring no new training or tools.

Splice pedestals are a standard network component used for underground installations. Shown at left the pedestal cover removed to reveal a cable splice junction (2). Most often these cable splices are performed using splice modules such as 3M’s™ “MS²™” splice modules which provide rapid quick-connect installation.

These MS² splice modules are used as standard-practice procedure for buried plant because they provide flexible network planning and expansion options for adding new subscribers to existing cable grids.

The sequence at left demonstrates the speed-splice process. Starting with (2) an existing MS² is shown. In (3), this splice block has been separated, and in (4) a new MS² junction serving the TLC is being snap-fitted onto the subscribers’ existing service cable. Not shown is the second TLC splice made similarly to the DSLAM serving cable.

All TLCs can be ordered with pre-installed MS² or any other desired type of splice junction to support speed-splicing. Once this simple splice block is mated, all required electrical connections have been made in a single quick-connect operation.



Sequence for Upgrading an Existing Splice Pedestal Supporting 5 to 30 Ports

Flexible Options for Inserting 5 to 96 Ports of Line Conditioning Using Existing Cross Connect Cabinets

C) Upgrading Existing Splice Pedestals For buried plants, the telco benefits from the quick installation offered by Phylogy’s TLC. Five to 30 lines can be upgraded in a few hours via the speed splice operation shown below. Higher capacity options are shown on the next page for conditioning up to 192 lines.

Shown below is the sequence used for adding a 5 – to 30 line TLC enclosure to an existing splice pedestal. This speed splicing procedure uses the industry-standard splice juctions such as 3M’s MS². Image 1) The existing splice juctiion, ready for upgrade. Image 2) MS² junction has been separated. (NOTE: bridging connectors are used during this step to avoid service interruption, but are not shown.) Image 3) Five-line TLC unit preconfigured with integrated support frame and MS² pigtails dropped over the base of an existing splice pedestal. Both a 5 and 10-line unit will fit into the pedestal to condition 30 pairs using our dual-port lince cards.

Once the TLC is quick-spliced between the DSLAM cable and the subscribers’ feeder cable, the unit can be closed up and secured. No other engineering, provisioning or power supply work is required, and all necessary electrical connections are made within the simple MS² junction.

Splicing onto Existing Cross-Connect Cabinets Our weatherized polycarbonate housings can also be bolted onto or placed inside existing cross-connect cabinets.



Co-Locating New Phylogy Cabinets serving 24 to 192 Ports of Line Conditioning

D) Adding New TLC Cabinets to the Network The six-step diagram below itemizes the installation process for speed-splicing a new 24 to 192-port Phylogy cabinet. Step 1) The original splice pedestal with its buried cable. Step 2) shows the original MS² splice juction exposed and the new concrete pad and Phylogy cabinet installed. Step 3) shows the original splice block separated. Step 4) shows a pre-connectorized 20-foot cable tail trenched between the pedestal and new cabinet. Typically this 20’ cable would be laid prior to the concrete pad being set and would thread through a center hole in a precast pad. Step 5) illustrates the quick-connect crimping process used to join both:

a) inside the pedestal - the main cable junction and the pigtail junction to the TLC cabinet

b) inside the cabinet - The cabinet rack can ship with MS² slice junctions supplied (or any other preferred standard splice juction) for quick connect to the 20” pigtail cable.



Matching TLC Insertion Points to Existing Speed-Splice Points

Inserting the TLC half the distancebetween the DSLAM and the CPE

for VDSL2 Installations

E) Design Rules for Placing TLC Nodes in the Loop for Optimal Performance In applications where the copper loop uses a uniform wire gauge, TLCs can be placed mid-span between the DSLAM and the subscriber’s CPE. This mid-way location is flexible within plus or minus one thousand feet, and delivers the maximum boost in bandwidth for those subscribers.

A second method is also used when the copper transport uses mixed wire gauges or has excessive line disturbers like bridge taps or coils. These conditions result in a non-linear line resistance. Thus the physical length location method in Option 1 will not optimally site the TLC node. In this case, the planner should calculate the loop mid-point according to loop resistance rather than distance. To simplify placement planning for precisely locating optimal TLC positioning, Phylogy supplies easy-to-use planning charts.

F) Utilizing Existing Network Splice Points for Optimal TLC Placement

As we have shown, all multi-line TLC enclosures can be installed through a familiar quick-splice procedure. Shown below is a “to-scale” diagram of an underground plant having the typical placement of splice pedestals every 600 to 800 feet.

Notice that the broad availability of these existing splice pedestals provides more-than-adequate locations for easily inserting TLC nodes consistent with the optimal architecture design rules described previously. No difficult trenching or manual splicing would be required for deploying TLC nodes in their optimal position in this type of buried plant.



VII. TripleStream® Line Conditioner Products

A) Line Card Configurations

Phylogy offers a family of standards-based TripleStream Line Cards to support the full-range of applications. These options provide for flexible allocation of bandwidth allocations, allowing a telco to customize service levels to subscriber plans.

Phylogy’s “Triple Play” models maximize data rate on short loops while “Extended Reach” models maximize reach on long loops as shown below.

Phylogy’s line cards can easily be added individually or replaced by the telco to match subscriber demand. This flexible, one-hour, on-demand deployment capability has no impact on neighboring line cards or copper pairs.

Subscriber turn-up is automatic, taking only minutes to perform. The TLC’s self-calibration completes in conjunction with DSLAM and modem’s normal DSL training phase.

Shown at left, VDSL2 line cards are available in dual-port configurations to double service densities and reduce costs in advanced networks.



B) Line Card Qual i ty and Rel iabi l i ty

TripleStream has been tested on multiple DSLAMs and modems around the world, proven in hundreds of real-world applications to certify its high product reliability:

• TLC designs are engineered to assure performance in the harshest environments;

• Components are Military-grade and Industrial-grade;

• All products are designed, manufactured, and tested to meet the needs of worldwide markets:

FCC emissions immunity test;

GR-1089 Lightning/Overstress tests;

Accelerated Life Testing;

Temp cycle testing (-40 to +65C);

ISO9000 manufacturing assures quality control; and

CE and RoHS models available.



C) Enclosures: 5-to-20 line Hubs and 24-to-192 line Cabinets TripleStream™ Enclosure Solutions are designed to provide ease of deployment and management of TripleStream™ Line Conditioners. Once the enclosure is spliced into the main telco cable, Line Conditioners are added by plugging them into the enclosure’s assigned card slots. All card-slot shelves provide plug-&-play docking of line cards into the backplane which is pre-connectorized to the cross-connect block.

Should a carrier or reseller wish to use their preferred supplier for cabinet enclosures instead of these Phylogy models, Phylogy will license the reference designs for all backplanes and card chassis.

Shipped from the factory fully tested and ready for deployment, Phylogy enclosures are available in capacities ranging from 5 to 192 ports, configurable by the telco in the field. Individual line conditioner cards are also available for order.

The 5, 10, and 24-slot models are available in weather-hardened lockable polycarbonate enclosures. When populated with the new dual-port line cards, these cabinets will provide line conditioning for 10, 20, and 48 subscribers. Phylogy’s 48- and 96-slot models are manufactured in heavy-gauge steel and high-density cross connect fields are provided to facilitate rapid installation and maintenance. These 48 and 96-slot models will also accommodate the new dual-port line cards to provide 96 and 192 port capacities. All models also incorporate an “in” and “out” stub box to provide a weatherized enclosure for cable splice protection.



Deploying VDSL2 Service Areas: The Planning Challenge

Deploying VDSL2 Service Areas: Present Method of Operation (PMO)

VIII. Planning Options that Maximize Network Utilization A) Revenue Capacity, Transport Efficiency, and Equipment Utilization

TripleStream can be readily standardized as a “best-practices” network engineering architecture to maximize both the bandwidth capacity and the bandwidth transport efficiency of any existing xDSL network. The TLC solution achieves this value-add by serving as a bandwidth booster on a line by line basis, and then delivering higher aggregate bandwidth across the DSLAM and its backhaul. The TLC method achieves higher equipment utilization across the entire access network including switchports and fiber backhauls – delaying the need to expand those assets even as subscriber bandwidth increases.

Why current VDSL2 access networks are underutilized As defined in the Executive Summary, original VDSL2 specs and resulting DSLAM design rules were intended to reach more subscribers with higher bandwidth. Yet telcos have reluctantly dialed back HDTV-quality reach by 30% to 50% due to lower actual performance. This rollback has driven IPTV deployment costs higher and have left “subscribers willing to pay” either underserved or unserved. Phylogy’s TLC provides a means for the carrier to re-establish a more profitable network architecture which enables:

● Higher DSLAM and Remote Terminal (RT) utilization;

● Higher transport efficiencies across fiber backhauls; and

● More efficient utilization of switchports.

Shown here is a diagram of three second-tier DSLAMs with their fiber backhauls branching off from a tier1 DSLAM. This tiered architecture has become standard practice for extending xDSL service deeper into unserved and underserved markets – and it is these second-tier RTs that suffer lower equipment utilization due to their limited VDSL2 reach for HDTV services. These second-tier DSLAMs essentially provide reach extension and bandwidth aggregation for the Tier1 DSLAMs.



Present Method of Operation (PMO)

A Better Way to Engineer xDSL Access Loops

Bandwidth Aggregation Reach extension and bandwidth augmentation are achieved more quickly and economically by using TLCs instead of deploying Tier 2 DSLAMs.

● Underutilized DSLAMs with empty slots: RT infrastructure and RT cost is fixed for civil engineering, planning, power and cabinets. Fewer ports served per capital outlay decreases cost efficiency; and

● Underutilized Backhaul: new tier 2 DSLAMs serve to aggregate bandwidth for the tier 1 DSLAM, but the GigE fiber serving the tier 2 DSLAMs runs mostly empty due to the VDSL2 service limitations of that DSLAM.

The bottom chart shows replacement of Tier2 DSLAMs with TLCs to deliver better utilization of the Tier1 RT / DSLAM assets at lower overall cost, and with much faster time to market. Thus DSL assets become more fully utilized when leveraged with TLC:

● TLC aggregates bandwidth for the Tier 1 DSLAM backhaul while eliminating need for inefficient Tier 2 fiber optics

● Original Tier1 DSLAMs are better utilized as their slots are filled with additional xDSL line cards to feed the new TLC distribution area

● ROI on the existing Tier1 RT infrastructure goes up while CAPEX cost of Tier2 RT / DSLAMs is eliminated by using the simpler TLC option.



A Better Way to Engineer xDSL Access Loops

B) Scaling Extended Reach into Expanded Distribution Area Now lets examine expansion of the network area. The ability to economically scale the TLC solution is an important advantage supporting a “Best Practices” network deployment.

These two diagrams quantify how a 2.7 kft extension of VDSL2 reach translates into service expansion across an entire CSA.

The TLC linear extension effectively applies to a radial area calculation using πR2 to observe service area gain. While the geometry of real-world DAs do not fit a perfect circle, and effective reach is reduced by indirect wiring paths, these comparisons provide a useful view of the scaling capability of TLCs.

The DA covered by CO-fed VDSL2 with a 3.5 kft reach is 38,484,600 square feet. The DA covered by Tier1 DSLAMs serving VDSL2 another 3.5 kft equals 153,938,400 sq ft minus the original CO-fed area, delivering a RT-fed DA of 115,453,800 sq. ft.

Next, for the area traditionally served by Tier 2 DSLAMs, we calculate the DA provided by a TLC extension of 2.7 kft for VDSL2 at 25 Mbps. This TLC-fed DA delivers an area of 295,593,144 sq. ft. Subtracting the Tier1 DSLAM area and the CO-fed area yields a TLC-fed DA of 103,170,144 sq. ft. which is 89% of the service area covered by Tier1 RT / DSLAMs.

Finally this TLC-fed DA can be deployed in a tenth of the time and 1/3 less cost than that required by RT / DSLAMs. We believe these figures validate the TripleStream Line Conditioning method as the “best-practice” xDSL architecture for delivering maximum network utilization, best CAPEX value, fastest time-to-payback, and the best subscriber acquisition value for wireline carriers.



C) Comparing Aggregate Bandwidth Augmentation Across a DA

TripleStream deployment increases aggregate bandwidth across an entire Distribution Area to add significant revenue-generating value to the existing plant.

Below is a comparison between the aggregate bandwidth supplied by using a traditional RT-fed DSLAM versus the same RT / DSLAM augmented with TLC. The upper half of this diagram shows the bandwidth delivered to each service tier by the CO-fed and RT-fed DAs. The “Best Practice” bottom half shows the bandwidth upgrade delivered for each service tier by TLC augmentation. The blue circles quantify the net gain delivered to each service tier.

As an example, the 18 Mbps “PMO” subscriber is upgraded to a 25 Mbps service. This 7 Mbps gain could support multiple SD video streams or one HD video stream, and a more robust Internet experience.

TLCs can boost the aggregate bandwidth across all these extended service tiers by 300% over the amount delivered by the original RT-fed DA. If one assumes a single subscriber in each of the six extended service tiers, the aggregate bandwidth gain possible across all six extended tiers totals 75 Mbps. This aggregate capacity represents a 300% increase in the billable bandwidth available from TLC “Best Practices” network engineering.



D) Key Advantages for the Carrier Phylogy’s ability to accelerate a telco’s attainment of ARPU & ROI goals is based on delivering a synergy of accelerated rate, reach, and revenues. An itemized business case analysis follows in the next section, but a summary of the TLC cost advantage is listed below.

More than a band-aid for marginal service areas, TripleStream® Line Conditioning is the most viable option available for improving bandwidth across the entire DSL network. Because it delivers the best ROI – and the fastest time-to-payback – among xDSL options for service extension, line conditioning can be adopted as a standardized “best-practice” network engineering strategy across all access loops serving broadband today.

Conditioning the Loop When TripleStream® is deployed as part of standardized network design & engineering practice, it can triple aggregate bandwidth capacity across xDSL distribution areas at one-third less cost than present methods of operation ($353 vs. $533 per subscriber line). Thus we are suggesting that TLC offers the wireline carrier an optimal design practice for engineering maximum ROI from all existing and planned xDSL network assets.



BEST PRACTICE for xDSL NETWORKS: “CONDITIONING THE LOOP”

PRESENT xDSL METHODS - PMO TLC “BEST PRACTICE”

SLOW DEPLOYMENT - 12 to 18 month delay to plan and deploy RT DSLAMs versus six weeks for TLC

ACCELERATE DEPLOYMENT 800%

HIGH COST - New RT / DSLAMs require power, back-hauls, civil engineering, pedestals and new copper

REDUCE DEPLOYMENT COSTS

LOW BANDWIDTH – even new DSLAMs are not capable of delivering maximum DSL bandwidth across CSA

INCREASE AVAILABLE BANDDWIDTH IN THE ACCESS LOOP UP TO 300%

LOW UTILIZATION - RT DSLAMs not fully loaded due to reach limitations - DSL Network is Under Utilized

DSL INVESTMENTS FULLY LEVERAGEDTO MAXIMIZE ROI

TripleStream Line Conditioning offers the fastest and lowest-cost architecture for extending DSL services. Rather than adding more costly RT / DSLAMs to extend reach and rate, augmenting both existing and new DSLAMs is the more economical, efficient, and faster solution for satisfying both unserved and underserved broadband markets: ● Fastest time-to-payback of any xDSL extension option

Installs in days vs. months to add new revenue streams quickly; Does not require permitting or civil engineering; Requires no IT OPEX, training or headcount; Highly flexible for on-demand installation to capture subscriber demand

opportunistically; and Immediate ROI from new subscribers when installed on-demand.

● Extends All IP Service Tiers Deeper, adding up to 300% more aggregate bandwidth

in underserved and unserved areas Defends service areas against competition, minimizes churn, boosts customer loyalty; Improves utilization of backhaul capacities Delays cost of adding second and third-tier DSLAMs

● Maximizes Return on all the installed xDSL Assets

Fully standardized and productized for broad-scale deployment as a standardized xDSL architecture;

Leverages the embedded copper base and existing RT / DSLAM investments to improve the ROI from legacy assets;

Can double revenues per RT/DSLAM Minimize the need for costly FTTN Installations; Simplified xDSL installation cuts CAPEX cost of service extension up to 34 percent.



IX. TLC Network Management Strategy A) Protecting Lifeline POTS Integrity

Each Triple Stream line card contains a bypass splitter so that the POTS (voice) traffic is always available, even if the Triple Stream port fails. For diagnosing physical line discontinuity, the TripleStream modules contain a “loop around” feature to allow normal mechanized loop testing such as MLT and 4Tel.

B) TLC Node Management Using “Standard Operating Procedures” Phylogy has formulated a method for managing TLC network nodes which is founded on simplicity and lowest-operating-cost strategies. To engineer the TLC advantage of self-powering, which eliminates complexity and costs, it was designed to operate within a ¼ watt limitation. Thus the TLC circuit design is extremely efficient and provides no active element management interface.

TLC operates as a Passive Device in the Network Much like splice blocks and line coils are passive devices, the TLC line card operates passively within the network. It is completely transparent to both signals and active network components like DSLAMs and CPE modems. The operational status of the TLC is easily monitored and alarmed using DSLAM management tools the carrier currently uses. The presence or loss of xDSL signal, and transmit rates of TLC-enabled lines are all shown via the existing Element Management Systems (EMS).

Monitoring the 48V POTS Power The presence of the standard POTS ring voltage is monitored using the telco’s standard operating procedures.

Monitoring Line-by-Line xDSL Circuits via Existing EMS Any disruption of xDSL service – whether at the DSLAM or at the subscriber modem is immediately alarmed and identified line-by-line using the telco’s existing EMS tools. If a TLC line card fails, these alarms will indicate this outage but POTS will not be interruped. Appropriate response is the standard copper maintenance practice.

TLC’s Standardized Quick-Swap Feature Cross-connect fields are integral for all installations using the TLC metal cabinets. Standard operating procedure includes one or two spare line cards pre-installed into these cabinets. Thus recovery from a failed line card requires only a swap of the jumper block on the cross-connect to migrate the subscriber to an operational TLC line card.

C) Advantages of the TLC Management Strategy ● Power-conservative, no added power equipment; ● No EMS training or new software required; ● No added IT investment or complex operations integration effort required; ● No operational impact outside of existing standard procedures; ● Makes installation and operation of TLC transparant to present methods of operation; and ● Fully compliant alarm and monitoring of active xDSL performance.



X. An itemized cost-comparison business case

This cost comparison was generated from a real world deployment in a 4 kft by 6 kft customer service area (CSA) originally fed from a 198-line RT.

The objective is to extend IPTV service capable of delivering 25 Mbps high-definition IPTV beyond the existing 3.5 kft distribution area (DA) of the original RT / DSLAM.

This CSA serves 456 homes in an upscale neighborhood with an anticipated take rate of 65% for HD IPTV. The goal is to provide 300 new VDSL2 service ports serving 25 Mbps each.

This CSA was originally supplied by four copper cable legs extending from the original RT. The underserved area beyond the original HD-IPTV reach is shown below in yellow.



Present methods of service extension would require the installation of two new RT / DSLAMs, each serving 25 Mbps out to 3.5 kft as shown below. The actual installation using TLC augmentation used only one new RT / DSLAM plus twelve, 25-line TLC units.

The four copper legs extending from the original RT/ DSLAM are shown by the orange lines above. Shown in red below are the 100-pair cables that must be either:

● Terminated and re-homed to the new DSLAMs

● New copper legs installed to bridge the new DSLAMs to the existing cable runs These new legs are required to shorten the loop length in the DA to meet the 3.5 kft VDSL2 design rule.

A key factor of TLC’s low installation costs is the lower labor and cable cost required to re-home copper legs to new DSLAMs.

The cost significance of this re-homing requirement is two-fold.

1) The addition of new 100-pair copper legs has risen 300-to-400% as the price of copper has climbed.

2) The labor required to re-home the four existing 100-pair legs is a significant cost. Both of these costs are typically not fully understood or accurately tabulated when considering new RT installations.



PMO Costs In the chart below, the line-item costs for present methods of operation (PMO) are tabulated at right.

Two new RT / DSLAMs require two new fiber backhauls and extensive copper re-homing.

Both of these DSLAMs also require a new switchport to be installed back at the CO switch.

The total cost of labor and materials for this PMO installation is $151,000.

TLC Costs Shown below is the actual labor and materials cost required to install only one new RT / DSLAM along with the appropriate TLC. The new DSLAM was provisioned with 153 VDSL2 ports while the original RT/ DSLAM was expanded with 130 additional VDSL2 ports. New fiber backhaul is required, and the reduction in copper re-homing costs yields a $50k cost savings.

When the total cost of the PMO installation is divided by the number of new subscribers served, the PMO cost is $533 per subscriber versus only $353 for the TLC architecture. This $180 per subscriber saving yields a faster time-to-payback with TLCs than present methods of operation.



XI. About Phylogy The genesis of Phylogy began in 2003 when two senior design engineers were developing signal regeneration technology for video applications over copper. Employing line boosting modules at both the origination & destination terminals, they realized that a single mid-line solution at half the cost could provide similar advantages for xDSL optimization.

Together, Mr. Luis Larzabal, now Phylogy’s Chief Technology Officer and Mr. Edward Ponganis, now Chief Product Development Officer, initiated a classic Silicon Valley technology incubator in their garage where they observed incredible results at the breadboard level. Small-scale private investments then moved this concept stage into early prototyping focused on developing a low-power solution that could operate on the POTS 48 volt supply commonly used in telco networks.

The next few years were spent refining the circuitry, reducing power consumption, and designing weatherized packaging and circuitry refinement, and a leading RBOC provided early guidance & product recommendations for optimizing TLC to serve their emerging ADSL applications. Phylogy was incorporated in 2004 and the following year attracted professional management to lead the company and raise more than $12M for R&D, product commercialization and marketing. Phylogy recorded their first sales to IOCs serving long-reach rural subscribers with ADSL.

TripleStream® was then optimized for ADSL2+ and large scale volume production of TripleStream® Line Conditioners ramped up in late 2006 in response to growing demand for extended IPTV service reach among IOCs.

VDSL2 development began in 2007 with final engineering focused on delivering the QoS improvement required by leading telcos.

Finally, in support of the VDSL2 program, Phylogy is currently cost-reducing the high-density cabinets that will make large-scale VDSL2 deployments the most cost-effective for IPTV service extension.



Phylogy Corporate Offices2350 Mission College Boulevard Suite 400 Santa Clara, CA 95054

866-PHYLOGY (866-749-5649) www.phylogy.com email: [email protected]

XII. Definition of Acronyms

ADSL Asynchronous Digital Subscriber Line, the most common DSL ADSL2 Next Generation ADSL with longer reach ADSL2+ Current Generation of ADSL with longest reach ARPU Average Revenue per User,

average of all telco subscribers’ monthly payments AWG Average Wire Gauge, thickness of the copper wire CAPEX Capital Expenditure, all costs related to hardware & installation CO Central Office, location of most telco equipment as compared to the RT CO-fed Services being supplied directly from the CO instead of from an RT CPE Customer Premises Equipment, the DSL modem in the subscribers’ home CSA Customer Service Area, the entire subscriber area served by a telco DA Distribution Area, the service area fed from a DSLAM based in CO or RT DSL Digital Subscriber Line, common term for all xDSL DSLAM Digital Subscriber Line Access Multiplexor, equipment that supplies DSL EMS Element Management System FTTH Fiber to the Home, more costly option to xDSL over existing copper wire FTTN Fiber to the Node, hybrid option uses both fiber & existing copper wire HD-IPTV High Definition IPTV, requires 6 to 8 Mbps of bandwidth HDTV High Definition Television, requires 6 to 8 Mbps of bandwidth IPTV Internet Protocol Television, TV supplied via telco’s using xDSL IT Information Technology, computer & software support hardware & services Kft One Thousand Feet Mbps Megabits per Second, standard measure of bandwidth capacity MS² Trademarked name of standard splice block made by 3M Company NEXT / FEXT “Near End” and “Far End” Crosstalk, noise that reduces DSL bandwidth OPEX Operating Expenditure, all costs related to ongoing operation & maintenance PMO Present Method of Operation PSD Power / Spectrum Density, map showing signal power of any DSL line PSD MASK Power / Spectrum Density, map showing signal power of any DSL line ROI Return on Investment, measure of profitability from an investment RT Remote Terminal, a field cabinet containing telco electronic equipment RT / DSLAM DSLAM equipment located in the field instead of the CO RT-fed Services provided from an RT versus provided from the CO SD-IPTV Standard Definition IPTV, requires 2 to 4 Mbps of bandwidth SDTV Standard Definition Television – requires 2 to 4 Mbps of bandwidth SNR Signal to Noise Ratio, higher SNR equals cleaner signal & higher bandwidth TLC TripleStream Line Conditioner VDSL2 Video Digital Subscriber Line, highest bandwidth version of DSL for video xDSL Digital Subscriber Line, technical term referring to all possible types of DSL