FTTH Applications

Wolfgang Fischer

Chairman Deployment and Operations CommitteeFTTH Council Europe

• In 2012, an LTE connection generated 19x more traffic than a non‐4G connection

• Wireless networks on licensed spectrum alone will not be able to cope with this anticipated traffic growth

Traffic offload via small cells (e.g., WiFi hotspots, Femtocells, ...) to wireline network

44 4154 48 48 54

16 1812 15 15

1619 19 15 17 17

1421 22 20 20 20 15

US Canada UK Germany France Italy

In transit

Office

Location of Mobile Internet UsePercentage of Total Time Spent in Activity

Home

Other indoorlocation

80%IndoorUse

Source: Cisco IBSG Connected Life Market Watch, 2011, Cisco VNI Global Forecast, 2012–2017

Consequences of mobile traffic growth

Content and Applications drive increase in network consumption

+ +2007 2011 2016

Internet Users

Devices19B IP‐enabled devices by 

2016

Users3.4B Internet users by 2016

ApplicationsVideo: 85% of Internet 

traffic by 2016

= TRAFFIC EXPLOSION

Traffic explosion is driven by phenomenal increase in number of users, devices and applications

Source: Cisco VNI Global Forecast, 2011–2016

0

20.000

40.000

60.000

80.000

100.000

120.000

2011 2012 2013 2014 2015 2016

Peta

byte

s / M

onth

OtherFile Sharing (Other)Web/Data (Other)Web/Data (Video)File Sharing (Video)IP Video on DemandInternet Video

11%

6%

39%

1%

22%

19%

Source: Cisco VNI Global Forecast, 2011–2016

30% CAGR 2011–2016

2%

86%Video

Consumer IP traffic increasingly driven by video

FTTH is vital for service evolution

DRIVES

New Services

New Revenues New Devices

Network upgrade

Content & Applications Bandwidth

ENABLES

Transfor‐mation

Stimulates Innovation

Next generation services examples

IP Telephony

Free Nat’l Calls

Free Int’l Calls

CommercialFMC

RichVoice

TVVideophony

IPTV

VoD

User Shared‐TV

Web 2.0On TV

TV on PC

Web on TV

TerminalVideophony Traffic

Information

HomeSurveilance

HomeMonitoring E‐Health

RemoteElderlyCare

E‐AdministrationIntegratedFMC

Widespread

Growing

EmergingCatch‐Up

TV

E‐Education

InteractiveTV Content

Envisaged

Home Tech SupportCloud Computing

QoS GuaranteeHome Network Mg’t Up to 100/100 HSI

Up to 50/20 HSI Wireless

DVR

All HD

HD

AdvancedEPG

ExclusiveContent

3D‐TV

Apps on TV(Open STB APIs)

LAN Router

Child Protection

Entertainment services

Communication services

Enabling services

Wider‐economy services

Movies, music, 3D/HD/immersive TV, on‐

line gaming, home working, FMC

File transfer File transfer

Photos,videos Data back‐ups  Transfer X‐rays, film 

distribution

Enhanced interactivity, home management, cloud 

computing

HD video conf., cloud computing,collaboration

HD video help‐desk, connected elderly, remote health, intelligent power 

grid

UPSTREAM +DOWNSTREAM

DOWNSTREAM

Bandwidth requirements for next gen services

UPSTREAM

FTTH

CONSUMERCONSUMER BUSINESSBUSINESS VERTICALSVERTICALS

Bitrate requirements in 2025

Source: WIK study – Market potential for high‐speed broadband connections in Germany in the year 2025 (2012)

Application category Downstream (Mbps)

Upstream (Mbps)

Packet loss Latency

Basic Internet 12 10 o o

Home office / VPN 100 100  + +

Cloud computing 100 100 + ++

Media and entertainment HD/3D 30 6 ++ +

Media and entertainment Ultra‐HD 60 12 ++ +

Communication 2 2 ++ +

Video communication HD 25 25 ++ ++

Gaming 10 5 ++ ++

E‐Health 8 8 ++ +

E‐Home / E‐Facility 8 8 o o

Mobile Services / WiFi‐Offloading 12 10 o o

Market requirements in Germany in 2025

Type Bitrate rqmt Numbers Fraction

Top Level Plus > 350Mbps ds> 320Mbps us

6.8M households300k enterprises

15.9%

Top Level 200...300Mbps ds170...280Mbps us

12.3M households 27.7%

Medium Level 70...150Mbps ds60...140Mbps us

13.3M households2.7M enterprises

35.9%

Low Level < 60Mbps ds< 50Mbps us

4.3M households590k enterprises

10.9%

No Internet usage 4.3M households 9.7%

Source: WIK study – Market potential for high‐speed broadband connections in Germany in the year 2025 (2012)

Speed requirements visualized

Technical & physical limitiations in traditional networks

Content rich apps challenge long loop copper lines 

Packet aggregation 

Limited radio spectrum

Limited radio spectrum

Long copper cables limit high bitrate applicationsLong copper cables limit high bitrate applications

Aggregation network is oversubscribed

Aggregation network is oversubscribed

Cloud Computing requires high peak 

bitrate

Cloud Computing requires high peak 

bitrate

Streaming (video) as well as user 

interactivity require  low latency

Streaming (video) as well as user 

interactivity require  low latency

Where’s the consumer demand? Right here!

There is no demand issue, but the market takes time to develop

The main influence on take-up rate is how long a FTTH service provider has been in operation.

This finding was independent of service provider strategy, and whether pricing was aggressive or premium

Demand follows service availability – the infrastructure cannot be deployed everywhere simultaneously!Source: Diffraction Analysis for FTTH Council Europe, NGA Services Study, 2012

Next Gen Services Value Proposition

10Mb/s

50Mb/s

+100Mb/sBusiness Cloud computing

Consumer Cloud computing

Consumer video Communication

Ubiquitous FMC

Games

Home management

NG TV

Biz video communication

Connected elderly

Telcos SP? (e.g. Google, Amazon, ..) Municipalities/Utilities

Business Cloud computing

Consumer Cloud computing

NG TV

Games

Home management

Connected elderly

Video communication

Smart grid

Legend: ConnectivityConnectivity +systems Full service

SIZE= Addressablesubscriber base

View 2012‐2015

Thank you for your attention!

www.ftthcouncil.eu