sharing hkbn s experience of developing a future...
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Next GenerationNetworks
11 April 2008Sheraton Shanghai
Daniel LoHead of Next
Generation NetworkDevelopment
Sharing HKBNSharing HKBN’’s experience ofs experience ofdeveloping a futuredeveloping a future--proof NGNproof NGNarchitecturearchitecture
DisclaimerDisclaimerThis presentation contains forward-looking statements and information that involve risks, uncertaintiesand assumptions. Forward-looking statements are all statements that concern plans, objectives, goals,strategies, future events or performance and underlying assumptions and other statements that areother than statements of historical fact, including, but not limited to, those that are identified by the useof words such as "anticipates,'' "believes,'' "estimates,'' "expects,'' "intends,'' "plans,'' "predicts,''"projects'' and similar expressions.
Risks and uncertainties that could affect us include, without limitation: changes in technology; changesin the regulatory environment in which we operate, or changes in the rules and polices that governmentregulators apply to our businesses; increased competition in the local or internationaltelecommunications, Internet access or pay-TV markets; the benefits we expect to receive from ourcontinuing capital expenditure on our network; our ability to both maintain growth and successfullyintroduce new products and services; and the continued development and stability of the technologicalinfrastructure we use to provide our telecommunications and Internet services.
Should one or more of such risks and uncertainties materialize, or should any underlying assumptionprove incorrect, actual outcomes may vary materially from those indicated in the applicable forward-looking statements. Any forward-looking statement or information contained in this presentation speaksonly as of the date the statement was made.
We are not required to update any such statement or information to either reflect events orcircumstances that occur after the date the statement or information is made or to account forunanticipated events.
Operating StructureOperating Structure
City Telecom (HK) Limited
Listed Parent Company (CTEL)
Hong Kong Broadband Ltd
Main operating entity for FixedTelecoms Network Services
SGNB Singapore BroadbandNetwork Pte Limited
Bidder for Singapore License
100% 100%
Triple Play Services on NGN PlatformTriple Play Services on NGN Platform
FixedFixed
TelephonyTelephony
BroadbandBroadband
AccessAccessIPTVIPTV
Ultra Condensed PopulationUltra Condensed Population
Population Density (Population / km2)Hong Kong = 6,407 (World rank #3)
UK = 246 (World rank #48)
People’s Republic of China = 137 (World rank #75)
Shanghai = 2,657
Hong Kong Shanghai
8
““Reverse Digital GapReverse Digital Gap””
“In Hong Kong, HKBN has created a “Reverse Digital Gap”whereby the
mass residential market on HKBN’s network coverage now enjoys superior
value and choice (25Mbps - 1000Mbps) for broadband services”
NGN InNGN In--building Blockwiringbuilding Blockwiring
LAN Switches within100m of end users
<100 meters ofCategory 5e Copper
Wiring
Fiber-To-The-Building
LAN Switches within100m of end users
<100 meters ofCategory 5e Copper
Wiring
Fiber-To-The-Building
Municipal FTTx NetworksMunicipal FTTx Networks
111
C o re In te rne t B ackboneN etw ork
In te rne t C ore
O N S 1 5454C isc o IP +O ptica l N e tw o rk
N * 10 G D W D M /R O A D M
N * 10G E/G E
IP M ulticastV id eo S ervers
1 0 M
1 00M
1000M
S TBS TB
TD MTD M E 1 C ircu it E m u lationE 1 C ircu it E m u lation
B ro ad b an dB ro ad b an d
V o IPV o IP
IP T VIP T V
N * 10G E /G E
N * 10G E/G E
N * 10G E/G E
FibreOptics ofReseller
Trench Route (100 m)
Trunk Route
FibreOptics ofHKBN
Trench Route (35m)
Trunk Route
Main Telecom andBroadcasting Equipment(TBE) Room
07
Comparison of FTTB andComparison of FTTB andFTTH Broadband AccessFTTH Broadband Access
09
Unbundled InterconnectionUnbundled Interconnectionof Resellers and Incumbentof Resellers and Incumbent
Main Telecom andBroadcastingEquipment (TBE)Room
10
InterInter--buildingbuilding FibreFibre ConnectionConnection
Fibre Distribution Frame in TelecomFacility Room
Fibre Cable To Central Office
4/F
12/F
G/F Lift Lobby
Fibre box in typicalfloors
Drop-in fibre inconcealed conduit
11
InIn--building FTTH Connectionbuilding FTTH Connection
1 million households1 million householdswithin 32 monthswithin 32 months
0
200
400
600
800
1,000
1,200
Feb-00 Nov-00 Sep-01 Jul-02
1 million household within 32months from award of license
Catalyst6500
Catalyst6500
Over 650,000 SubscribersOver 650,000 Subscribers
1.4 million Households1.4 million Households
Catalyst2950/3500
Voice
Video
Internet Access
VideoContent
VideoSVR
V
PSTNSS7
Catalyst2950/3500
EverythingEverything--overover--NGNNGN PlatformPlatform
PSTNPSTNPSTN
HKBNIMS
Platform
HKBNHKBNIMSIMS
PlatformPlatform
TDM
Ethernet
Ethernet
Ethernet
Ethernet
or
VoIP Class 5 Switch
InternetInternetInternet
VoIP Gateway
MPEG-2 Encoder
Set Top Box
‘Plug and Pay’Service Access
Standard RJ45Ethernet Jack for25/100/200/1000
Mbps access
StandardRJ11 PhoneJack VoIP
access
Set-Top-BoxConverter forIP-TV access
10Mbps service for new customers terminated from September 2007
Unmatched Symmetric BandwidthUnmatched Symmetric BandwidthAdvantageAdvantage
Res. Bldg
House
Fibre Hub
OutdoorKiosk
TBE RoomUser
User
User
User
User
User
User
User
User
1x32Splitter
1x32splitter
Optical Line Terminal(OLT)
Optical LineTerminal (OLT)
To Switch
1.2Gbps
1.2Gbps
2.5Gbps
2.5Gbps
User
14
Enhancement of FTTH coverage in bothhigh-rise and low-dense buildings
GPON DeploymentGPON Deployment ––Future of FTTHFuture of FTTH
Fibre Ring
25
World Leader inWorld Leader in ““Value for MoneyValue for Money””Broadband ServicesBroadband Services
26
- ARPU increased over 60% in 18 months, while the churn
rate reduced from 1.4% to 0.6%
€ 0
€ 5
€ 10
€ 15
€ 20
€ 25
Aug-05 Feb-06 Aug-06 Feb-07 Aug-07
BlendedAverage
Increasing BN ARPU &Increasing BN ARPU &Reducing ChurnReducing Churn
29
Reverse AsymmetricReverse AsymmetricBandwidth DemandBandwidth Demand
Upstream traffic is 3 times of downstream traffic
Innovative applications rely on high upstream speed
*Weekly statistics from HKBN
Video Blogs (VBlogs)
High Definition Video
HandsetPhoto
Digital Camera
Increasing HighIncreasing HighBandwidth DemandBandwidth Demand
31
bbDrivebbDrive ––online backuponline backup
Backup your files
Share video/pictures with yourfriends
1Gbps symmetricbandwidthempowers you toaccess the files tobbDrive as easilyas your localdrive
bbTVbbTV -- Interactivity featuresInteractivity featuresInteractive Education Content
- like Times College (會考無難度), Kwik Maths (速算速訣), Idea Impulse (精彩e世代), etc.
HKBN believe “High Bandwidth like Prada& Louis Vuitton to Ladies; Porsche &Rolex to Men….nothing special butdifferentiation from competitors…”
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