ftth wholesale evolution a review on what is coming next · ftth wholesale evolution a review on...

FTTH Wholesale Evolution

A review on what is coming next

Polska Cyfrowa impulsem do e-rozwoju Warszawa, 26 maja 2015 r.

Guillermo Alarcon. Alcatel-Lucent

FTTH: Inclusion and Competitiveness From Luxury to Affordable Necessity

Country Operator Mbps USD % of Monthly

GNIPPP

Tunis Ooredoo 100 86 10%



Oman Ooredoo 50 164 4%




France SFR 200 42 1%

France SFR 100 32 1%

Poland Alfanet 200 26 1%




Mexico Axtel 200 65 5%



Colombia ETB 150 100 10%




-50,00

0,00

50,00

100,00

150,00

200,00

-50 0 50 100 150 200 250

Tunis Oman France

Poland Mexico Colombia

Speed M

on

thly

Fee

USD

/M

Bubble Size: Monthly Fee / GNIPPP

Publicized prices in the Internet March 17th 2015 World Bank Data

Telecom Network Layered Model

Services, Content & Apps (residential, public & business)

Active Network (network equipments,

business & operation support)

Passive Infrastructure (trenches, ducts, fibre)

End-user

Investment needed Payback

Few m-3 y

5-7 y

10-15 y

20%

80%

INFRASTRUCTURE SHARING, WHOLESALE SERVICES AND PPP

How to go further?

You know the defy is exponential Well, there are also exponential solutions!

FTTH CAPEX /Abonné)

~4 ans ~8 ans > 20 ans

ZONES DENSES ZONES RURALES DENSITE MOYENNE

0

1000

2000

3000

4000

5000

6000

7000

Fiber drop

Dark Fiber

Trenching ducts

Engineering

Network HW

Home HW

Fiber drop

Dark Fiber

Trenching/ducts

Engineering

Network HW

Home HW

Fiber drop

Dark Fiber

Trenching/ducts

OSP engineering

Network HW

Home HW

500€

3000 €

House

holds

Cost per household

-

No ROI without

subsidies

Positive ROI for several

alternative operators

Subsidy

Comprehensive

natural monopoly

Preventive

9M 24M Positive ROI for

one operator

only

Positive ROI for one or

two operator

s

Optics Flexibility & Scalability

0

5

10

15

20

25

30

35

40

45

GP

ON

XG

-PO

N1

TWD

M-P

ON

[1

]

TWD

M-P

ON

[4

]

DS [Gbps]

2010

GPON G.984

NG-PON1 XG-PON1

G.987 XG-PON2 ✔ X

NG-PON2 TWDM

G.989 WDM TDM ✔ X

Niche applications

Still no volume deployments

NG-PON2 coming soon (2015)

XG-PON1

ALL services on one network

Operational benefits

Same initial cost as XG-PON1

TWDM

2015

Next generation PON standardization roadmap

Optics: Scalable & Flexible

Sharing Fiber through bitstream

POI

Layer 2 Wholesale Products

Layer 3 Wholesale Products

Both Layer 2 and Layer 3 IP/MPLS wholesale products can provide any transport service and meet any SLA

Access Provider Offers Wholesale Bitstream products at Points of Interconnections More POI, More Access Seeker Differentiation, at a Price.

Layer 2 is more straightforward while Layer 3 is more flexible in services but more complex in operations

IP/MPLS Wholesale Bitstream Compromises

Access Provider

Acc

ess

Se

eke

r

Less Responsibility More Responsibility

Less

Dif

fere

nti

atio

n

Mo

re D

iffe

ren

tiat

ion

Level 3 Wholesale Bitstream Products

Level 2 Wholesale Bitstream Products

Services Infrastructure: Meet Cloud/IP • Operators Consolidate & Converge (Fixed, Mobile,

Media) Seeking Economies of Scale and Client Retention.

• Enterprises and OTT clearly going Cloud

• Operators going Cloud/IP: Network Function Virtualization (NFV) & Software Defined Networks (SDN).

• NFV: Dealing with service request in the Cloud • Scalability, Programmability

• 30% CAPEX Savings on Core Functions

• SDN: Automates provisioning of network connections • Operational Lifecycle more efficient

• 25% to 40% OPEX Savings on Network Connectivity

http://www2.alcatel-lucent.com/landing/bell-labs/adl/

The challenge continues: Return on Capital Employed (ROCE) continues to erode.

NFV/SDN: The Next Technological Wave, as important and disruptive as IP twenty years ago






How does it look like? IP/Cloud Architecture

Cloud/IP What does it mean? Network Function Programmability, Connectivity Automation

and Life Cycle Simplification means:

• New Relationships with Clients: Elastic reservation and release of network capacities, On-Line Selling, Service Provisioning and Self-Care, Faster, Simpler and Cheaper Trial and Fail

• New Market Players: Large Enterprises, Virtual SP, Brokers, Access-Centric Players and Cloud Carriers

• New Collaborations: SD-VPNs and NFaaS could yield to global offerings, as in Airline business

• Profound Changes in Operations: More IT savvy, compatible OSS/BSS required, Transformation / Greenfield decisions

• OPEX Savings: Estimated 25% for Europe

NFV&SDN will expand value in telecom sector for those who embrace it by bringing elastic, programmable and dynamically manageable network capacities at internet timescales and transaction volumes

Is it real? Work on Standardization

Cloud/IP Simplifies, Scales up & Innovates

Access Centric Carriers

Clo

ud

Car

rie

rs, E

nte

rpri

ses

and

IT

& O

TT

pla

yers

Less Wholesale Product

Differentiation

More Wholesale Product Differentiation

All

Kin

ds

and

Siz

es

BIg

•Bandwidth on Demand •Bandwidth Calendaring

•Enhanced user control of virtual network slices •Real-time, context-dependent QoS

•Rapid turn-up and configuration of new enterprise sites •Enablement of rapid, customized product trials

•Federated multi-operator dynamic virtual networks •Real-time, end user customizable service options

•Security Services (Firewalls, NAPT, ACL, Intrusion Detection, DoSP, On demand Security Probes)

•Content Filtering, End Point Security •IaaS: Compute, Storage & Desktop as a Service

•Granular Network Slices (Virtual IMS, Virtual ePC) •Enterprise Connectivity (SD-VPN, Virtual CPE Services)

Level 2 WP

What is Complex today, will become simpler tomorrow What is Local today, will be Global tomorrow

Conclusion

• Broadband: Citizen Inclusion and Community Competitiveness

• FTTH: from Luxury to Necessity

• Infrastructure Sharing, Wholesale & PPP prospering

• Network Technology Evolving: Faster (TWDM-NGPON2) Services (IP/MPLS) which can be shared in wholesale mode (L2/L3 Bitstream).

• Telecom going Cloud (NFV & SDN): Cloud benefits into Networks

Our industry is evolving. Lets evolve with it.

Dziękuję za uwagę

Thank you for your attention

ftth wholesale evolution a review on what is coming next · ftth wholesale evolution a review on...

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