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FTTH on-site visit Paris November 9th, 2016

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FTTH on-site visit

Paris

November 9th, 2016

Usage patterns are requiring more bandwidth All usage patterns concurrently, with stable quality of service

Empowering current usage

patterns

higher upstream bandwidth

concurrent multi-applications

real-time response

high quality video and sound

very large file transfer

Fueling new usage

patterns

4K television

e-education e-health

home automation

Virtual reality low-latency

network gaming

video conferencing teleworking

ADSL is reaching its limits, while fiber is “the” future-proof technology Evolution of downstream bandwidth in France

1

10

100

1 000

10 000

100 000

1 000 000

10 000 000

100 000 000

1 000 000 000

bits per second

100 Mbps

56 Kbps

technological limits of ADSL+

1 Gbps ?

512 Kbps

1 Mbps

18 Mbps

8 Mbps

There are 2 different architectures to connect customers in very high broadband

FTTB: Fiber To The Building

copper or cable

fiber

Central Office

fiber

FTTH: Fiber To The Home

fiber

There are 2 different architectures to connect customers with fiber to the home

1 fiber for 64 customers

1st customer

64th customer

Point to multipoint (GPON)

1 fiber for each customer

Point to point

Without splitters, duct space is wasted

With no splits

With 2 splits

Network rollout

transportation

optical line terminal

(OLT)

point of optical distribution level 1

(PDZ)

central office

distribution 1 connection distribution 2

cable drawing pit 1

shaft

equipments

function

point of optical distribution level 2

(PE)

location

inside / ouside building

section of local loop

cable drawing pit 2

basement / roadside

optical distribution

cabinet (PRI)

optical distribution

box (PB)

optical terminal

plug (PTO)

optical network terminal (ONT)

1:8 C1 splitter

1:8 C2 splitter

dwelling shaft

8

Orange optical network node

vertical shaft

above 12 dwelling units

shared access

connectingpoint

Orange optical network node

connectingpoint

shared access

6m households

Very dense areas

14m households

Less dense areas

2

3

1

2

3

1

Homes passed:

Homes connectable:

Connected customer:

Shared section:

1 2

1

1 2 3

2

Le Mée-sur-Seine

Villiers-le-Bel

Ris-Orangis

Elancourt

Guyancourt

Villeneuve-le-Roi

Fontenay-le-Fleury

Franconville

Livry-Gargan Villemomble

Garges-lès-Gonesse

Cergy

Les Ulis Longjumeau

Évry

Marly-le-Roi

Champs-sur-Marne

Paris 100% Fibre 87 towns around Paris 51 elsewhere

The Very Dense Area in Île-de-France

Orange optical network node

The first operator accessing a building must share its infrastructure Dense areas

In dense areas, the sharing point may be installed in the basement of buildings with 12+ flats

vertical shaft

above 12 dwelling units

shared access

connectingpoint

other operator’s network

The first operator accessing a building must share its infrastructure Less dense areas

Orange optical network node

connectingpoint

shared access

In less dense areas, the sharing point is located in the street it serves 1,000 homes - or at least 300 homes, when coupled with a wholesale collect offer

other operator’s network

Multi-fiber sharing in dense areas

basement

flat flat

vertical main cable

connecting point

connection cable

optical plug

flat

flat

optical plug

flat

flat

optical plug

connecting point

connection cable

connecting point optical plug

4 fibers per unit

shared access

Typical network architecture in less dense areas

central office

building

house

sharing point, serving up to 360 ports

typical cabinet for a sharing point serving up to 360 households —dimensions : 150 x 150 x 30 cm

distribution downstream of sharing points

Various types of cabinets

29

50

2460

6120

1500 750 300

15

00

Armoire passive

(max 360 EL)

Armoire passive

(max 180 EL)

700

Armoire active (max 200 EL)

90 1600

15

00

Armoire active (max 500 EL)

42

0 65

0

300

150 260

120 360

1,000

#Q3_2016 FTTH in France

960827

Q3’16 Q2’16

1,181

Q1’16

1,075

Q4’15 Q3’15

1,308

6.3m FTTH connectable homes

21%

Q3’16 c.18% of total homes

2022 c.60% of total homes

2018 c.35% of total homes

Connectable homes in private investment area

6.3m

Q3’16 Q2’16

5.9m

Q1’16

5.5m

Q4’15

5.1m

Q3’15

4.6m

1.3m FTTH customers

FTTH adoption rate FTTH customers as % of total FTTH connectable homes

+3 points yoy

12% FTTH penetration in our BB base FTTH customers as % of BB customer base

+4 points yoy

86% FTTH migration rate Orange FTTH eligible customers already migrated to fiber

+5 points yoy

20m

12m

6.3m

+ 37%

+ 58 %

Network design

Today’s visit stops

backbone 1:8

C1 splitter

lower distribution

room

optical distribution

frame

fiber local loop

copper local loop

on-site customer installation

copper main distribution

frame

1. Copper main distribution frame

copper main distribution frame

lower distribution room

alternative carrier DSLAMs

PSTN switch

copper DSLAM

backbone

2. Optical distribution frame

backbone

lower distribution room

optical distribution

frame

optical line terminal

(optical DSLAM)

3. Lower distribution room

lower distribution

room

cable drawing pit

copper main distribution frame

optical distribution frame

mask

1 copper pair = 1 customer

1 optical line = 64 customers

4. Cable drawing pit

lower distribution room

point of optical distribution level 2 (PE)

point of optical distribution level 1

(PDZ)

1:8 C1 splitter

1:8 C2 splitter

optical distribution

cabinet (PRI)

5. Customer premises

powerline

fiber

ethernet

point of optical distribution level 2

(PE)

optical distribution box (PB)

livebox

set top box

optical terminal plug (PTO)

DECT phone

DECT phone

liveplug liveplug

1:8 C2

splitter

laptop with wifi

optical distribution cabinet (PRI)

laptop with ethernet

optical network termination (ONT)

Splicing