FTTH

– new business
opportunity

Krzysztof Sieczkowski
Warsaw, 23 June 2008
 Internet access evolution

Development of services
HDTV

Development of services
very high speed
Internet – up to
Digital TV 100Mbps (up & down)
Functionality / Benefit for customers

channels & choises
giga mail

VOD, PVR, HD
multiroom

Broadband Media
…
Enhanced
music

integration with VoIP
Web Access
Networking

gaming
Web Access
music
WEB 2.0

home networking

e-mail
photos

search
short video

commerce
TP has been developing services on modern technology

56 k 115 k/128 k 2M 6M 15 M >15 M bandwidth 100 M

1998 2002 2004 2005 2006 2007 2008

Dial-up SDI ADSL ADSL 2+ FTTB / FTTH

Development of technology
2 Regarding: NGN Conference
 FTTH – main advantages in long perspective

 Business objectives:
 New generation services: a personalized equipment pack - HD TV, high speed Internet – up to
100 Mbps (up/down), smart home
 ARPU increase due to new offer
 Capability of complex offer delivery
 Advantage over competitors

 Technological possibilities:
 Huge bandwidth, independence on the distance from the switch - lack of technical limitations
 Higher technical reliability - lower interference sensitivity, faults no. (less active points) etc.

 Capex of broadband internet in FTTH will be comparable to copper/ADSL due to:

 Copper line price increase
 G.PON technology cost reduction – mainly: ONT, splitters

 Opex savings – passive elements only

 Future solution – extra development is not necessary in comparison with copper/ADSL and
wireless solutions

3 Regarding: NGN Conference

 FTTH new possibilities

Model of service integration Today – via copper line:

 BB up to 24 Mbps downstream
 www browsing
FTTH
 E-mailing
 Databases
 E-learning
InteractiveHousehold
Household
security  E-shopping, e-banking etc.
Interactive gaming
gaming security  Teleworking
 Communicators – gadu-gadu, tlen, icq
 Content – music, films, games, multimedia

Voice over IP @
Videophone
 IP TV
 VoD
Voice over IP Internet
HD TV
VH BB (Wi-Fi)
 VoIP
@
Videophone TV
FTTH
Onephone Music

Home
Security Tomorrow – via FTTH:
gateway
Home
gateway
 VH BB up to 100 Mbps up & down
Livebox
 E-healthcare
 E-government
 HD TV
 Multiroom (n x TV set)

4 Regarding: NGN Conference

 FTTH Worldwide
FTTH Worldwide mid 2007
Japan – FTTH leader
 FTTH-subscribers exceed 10 million households

~2.0M ~1.2M  Nearly 300.000 new subs./month

~18M
USA  DSL migrates to FTTH: number of DSL-subscribers
 FTTH-subscribers exceed 2 million households decrease since Q02/2006

 Nearly 10 million households passed  Nearly 60.000 subs./month switch from DSL to FTTH

 FTTH-growth-rate more than 100%

Europe
 Power of Cable operators: Time Warner, Comcast,
CableVision launching 30 or 50 Mbps offers  Over 1 million FTTH/B subscribers in EU 31 (27+4) (2007)
 23% growth compared with 12 months previously
 86% of FTTH/B subscribers are concentrated in 5 countries
(Sweden, Italy, Norway, the Netherlands and Denmark).
 Majority of projects driven by municipalities and utility-
companies
Worldwide FTTH Deployment Forecast
(Households, 2005-2012)
Househols connected (Millions)

100 89,6
90
80
69
… Future proofing is one of the greatest
70
advantages of FTTH…
60 51,4
50 39,4
40
28,8
… No one can exactly predict what technologies will
30
20 11,5
20,2 develop in the coming years. So the best bet is to
6,2
10 prepare for everything…
0
2005 2006 2007 2008 2009 2010 2011 2012 [Richard Jean-Pierre, product manager, Suttle]
Source: Heavy Reading, ‘FTTH Worldwide Market & Technology Forecast, 2006-2012’
5 Regarding: NGN Conference
 FTTx access network scenarios

FTTC
 Fibre to the cabinet
 From the cabinet copper (ADSL) is used up to
the CPE on client side

FTTB
 Fibre to the building
 Copper cables between building basement and
customer

ONU

FTTH
 Fibre to the home
 Fibre extended to customer premises, no copper
cables

6 Regarding: NGN Conference

 FTTx capex aspect

 Based on current prices – FTTH capex is on average 50%

higher than copper / DSL.
 Taking into account price decrease in case of mass
deployment (esp. for ONT and fiber optic) and an upward
trend in copper lines prices – FTTH looks promising in terms
of capex in coming years.
 Expected capex savings – ca 30% within 5 years – due to
mass deployment mainly in lines:
– ONT (optical network termination)
– internal network
– GPON

7 Regarding: NGN Conference

 FTTx – geomarketing approach

Technology

FTTC FTTB FTTH

(fiber to the curb) (fiber to the building) (fiber to the home)

Existing HH Based on existing infrastructure, limited to To be developed in

profitable developers and last mile for the future depending
individual HH on business case
results
New HH
developer If BC for FTTH/FTTB If BC for FTTH FTTH as
negative (VDSL over negative – FTTB with recommended
FFTC to be VDSL as solution for developer
considered) recommended market
solution
New HH Limited to profitable Not planned To be developed in
clients, the other – to the future depending
individual be covered by CDMA on business case
results

8 Regarding: NGN Conference

 FTTH pilot in
TP network

9 Regarding: NGN Conference

 FTTH pilot in TP network

FTTH 2007/08 deployment in Poland - technical pilot in Warsaw:

 Site: Warsaw, Górczewska Str., residential block (265 households
covered)
 Vendor: Alcatel&Lucent
 Connecting customers / service delivery: first residents in March; first
clients – April
 Services: Very High Speed Broadband (50Mb/s down and 10Mb/s up,
IPTV, VoD, VOIP)
 FTTH pilot goals: Technological readiness to provide TP services,
confirmed by:
 Positive E2E test results
 Implementation of solution in TP network

Current status:
 first client connected in Apr-08 (HH settlement process in progress)
 30 customers connected at present

10 Regarding: NGN Conference

 Offer

Multipakiet tp 50Mb/s 49 PLN

* until Jun-09
incl.:
• BB Internet access 50/10 Mbps
• videostrada tp (pakiet podstawowy tp)
• VoD fibre
copper

• VoIP
kitchen living room

Additionally available:
• neostrada / videostrada in every room
bathroom

Dedicated Customer Care

incl.:
• Sales representatives
• 7/24 CC
• Technical staff
• Other (e.g. R&D, IT&N)

11 Regarding: NGN Conference

 FTTH (GPON) - network architecture
V5.2

Voice
Gateway Local Exchange
PSTN

E
Gb
POTS FX
S
PC 10/
1 00
Aggregation GbE
Bas
eT GbE Network BRAS Internet
a se T
1 0/1
00B Gb
FXS E
VoIP ONT
T
Ba
se OLT Multi

G
/ 10 0
„Optical”

bE
10 IP TV/ VoD
server media
Livebox
STB
TV
Call
VoIP
• 3 fundamental components: Server

• ONT (Optical Network Termination )

• ODN (Optical Distribution Network) Splitter
• OLT (Optical Line Termination)
• 64 subscribers per 1 optical fibre
• 2,5 Gb/s Downstream / 1490 nm
• 1,25 Gb/s Upstream / 1310 nm (TDMA – Time Division Multiple Access)
*FTTH – Fiber to the Home
GPON – Gigabit Passive Optical Network

12 Regarding: NGN Conference

 Summary

 FTTH is future proof access solution in terms of:

 Technology aspect
 Marketing opportunities
 Business profitability

 TP is ready for FTTH investments if stable and

predictable regulatory policy

13 Regarding: NGN Conference

thank you ☺