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Powerline an Alternative Technology in the Local Loop

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Powerline an Alternative Technology in the Local Loop Powerline an alternative technology in the local loop - Presentation to IEEE - March, 2004 Agenda 1 PLC Utilities Alliance 2 Power Line Communications 3 Access PLC competitive solutions 4 Endesa’s PLC project IEEE_040308 1 PLC Utilities Alliance – Objectives and Introduction to the PUA The “PLC Utilities Alliance” (PUA) is an organization supporting Power Line Communications (PLC) development in Europe Members Objectives Achievements Develop a common Awareness & Promotion position among PUA • White Paper on PLC and its Members members Impact on the Development of Work with national Broadband in Europe and EU bodies to • Communication with EU bodies, obtain a favourable NAs, and other stakeholders environment for PLC development Standardization & Regulation Raise Awareness • Measurement campaign in five about the PLC European countries opportunity • Work in different standardisation bodies Technical reference • ETSI, CENELEC, CISPR, point JWG Help standardisation process International Cooperation More than 100 Million Support PLC equipment Research electrical customers in and Development 23 countries IEEE_040308 2 PLC Utilities Alliance – PUA Objectives for 2004 In 2004, the Awareness and Promotion Task Force of the PUA will have a special focus to boost the PLC market and to obtain a progress in key markets and utilities Maintain relationship with European Commission and National Authorities 2003 tasks follow-up Consolidate as industry reference point Keep collaborating with standardization and regulatory organizations Focus on utilities (help in the commercial launch processes) New developments Focus on relevant stakeholders (operators, media, financial market) for 2004 Increase and structure exchange of information between PUA members IEEE_040308 3 Agenda 1 PLC Utilities Alliance 2 Power Line Communications 3 Access PLC competitive solutions 4 Endesa’s PLC project IEEE_040308 4 Powerline Communications – PLC as alternative access infrastructure As an access technology, PLC is well positioned to compete with other access technologies in the mass market HFC ADSL PLC • Fiber+Coaxial cable and • Copper pair • Electric wires copper pair 1 Infrastructure (existing telephone lines) (existing power grid) (New deployment) Yes No Yes Shared Medium (Tipically 1000 users2) (Dedicated line per user) (Approx. 200 – 250 users) • Triple play: • Broadband • Broadband TV+Telephony+Broadband - Pre-launching: TV, VoD • Telephony (VoPLC) Services - Testing: Telephony (VoDSL) - Testing: VoD, energy services, PLC in-home services • 45 Mbps(down)/10Mbps (up) • 4 - 6 Mbps (ADSL) • 45 Mbps (up + down) Data transmission • Commercial offers usually up • Typically Asymmetric • New generation: 200 Mbps rate to 2 Mbps • Symmetric CAPEX per client3 HIGH MID-LOW MID-LOW 1 Copper wire necessary for voice service in non-integrated HFC networks 2 Strongly dependant on network design 3 Details subject to NDA IEEE_040308 5 Powerline Communications – PLC as alternative access infrastructure PLC technology is able to compete with ADSL in the residential segment Comparison of Access Technology CAPEX PLC ADSL CLEC HFC PLCPLC 20052004 Capex per User 5% 10% 15%Penetration 20% 25% 30% Source: “White Paper on Powerline Communications and its Impact on the Development of Broadband in Europe, 2002” (Developed by Arthur D. Little for the PLC Utilities Alliance) IEEE_040308 6 Powerline Communications – PLC as alternative access infrastructure In terms of roll out and provisioning, PLC is very well positioned to compete with other access technologies in the mass market HFC ADSL PLC • Requires lengthy construction • Possibility of rapid deployment, • Rapid deployment over of new network but CLECs are highly existing electric infraestructure • Civil works require public dependent on incumbent (LV + MV substations, permissions (street digging, • In practice, deployment is being property of the utility and buildings) challenged by a slow ULL easily conditioned for PLC) Roll-out • Once an area is chosen for process • Selectivity at substation and deployment, roll-out is not • Requires availability of meter room level selective collocation space in • Minimum need of civil incumbent´s Central Offices works (linking of LV and logistics substations through MV PLC) • Reasonable provisioning • Short to medium provisioning • Short provisioning time (just process time process time for ILEC, longer a CPE in user’s domicile) • Requires installation from the delays for CLECs (shortening) • No permissions required street curb to client house of • Service availability varies from • No works at customers coax drop region to region (from as low as premises (high acceptance) 50% to 95%) Provisioning • Requires installation of CPE • Ubiquity: Any conventional at the client´s household • Auto-installation DSL reduces electrical plug becomes part • For blocks of flats / provisioning time for basic of the telecommunication apartments wiring permission services network from neighbors is required •CLEC dependency on incumbent to test and approve line IEEE_040308 7 Leading manufacturers ensure the availability and development of PLC equipment. 2 competitiveness Powerline Communications – NOTE: DS2 has already tested a 2nd. G Technology Chip PLC PLC equipment designers nd manufacturers generation chipset will increase performance and PLC Medium Voltage Up to 20 Mbps Manufacturers eneration chip (200 Mbps), that will Up to 6 Mbps PLC providers PLC LowVoltage Up to 2 Mbps be available in the market in 2004 Up to 1 Mbps In-house IEEE_040308 8 Powerline Communications – Global Situation More than 80 PLC initiatives in more than 40 countries show a high interest in PLC technology among worldwide utilities Worldwide PLC trials and commercial initiatives * Europe Asia Austria Italy Portugal Iceland Hong Kong North America EVN ACEA EdP Reykjaviken CKG PowerCom Linzag ENEL France Spain National Power Telecom Mexico SSW Luxemburg EDF Endesa Indonesia CFE Tiwag CEGECOM Evicom Iberdrola PLN-ICON+ USA Czech Rep. Netherlands Germany Unión Fenosa PT Indonesia AEP PRE Nuon Avacon Sweden Japan Ameren Denmark Norway EnBW Birka Energi TEPCO Cinergy Nesa BKK Offenbach Elforsk Korea ConEd Finland Lyse GEW Graninge KEPCO EMC Energi Randers Viken Energinett MVV (PPC) Skanska Kuwait PPL SENER Poland GWS Sydkraft ITS Southern Pori Energia Gdansk Stadtwerke Solingen Vattenfall Qatar Sonera Pattern Hungary Switzerland Malaysia South America Turku energia Stoen Novacom Sunrise/ EEF FibreComm ZKE UK Multimedia-Ministerium Argentina SSE Telecom Russia EDENOR Energomegasbit Brazil Africa Saudi Arabia Cemig Electronia Copel Algeria Singapore EletroPaulo Atelcom Singapore Power Light Botswana Singapore Telecom Chile Media Solutions Chilectra Egypt CGE Alkan EMEL Ivory Coast Australia Honduras SIT Elite South Africa ETSA Adelaide South Australia Peru City of Tshwane Luz del sur Source: Arthur D. Little 2003 *Not exhaustive IEEE_040308 9 Powerline Communications – Global Situation Many companies already started controlled commercial initiatives, and some of them have already launched PLC services PLC initiatives development status* Massive (>100 users) Technology trials Pre-commercial and commercial initiatives technology trials Energieversorgung Offenbach Reykiavik Energy Source: Arthur D. Little 2003 *Not exhaustive IEEE_040308 10 Agenda 1 PLC Utilities Alliance 2 Power Line Communications 3 Access PLC competitive solutions 4 Endesa’s PLC project IEEE_040308 11 Access PLC competitive solutions– European Broadband market growth Worldwide Broadband market growth shows the classic “S-curve”, in which Europe and USA are still climbing up the Growing stage Broadband Penetration along Market Maturity Stages - end 2003 80% Korea Broadband Broadband penetration Hong Kong 60% Taiwan Netherlands 40% Belgium USA Japan Sweden Singapore Austria Switzerland Czech 20% Malaysia Brazil Colombia UK Venezuela Spain Croatia Germany France Italy 0% Market maturity stage Embryonic Growing Mature Ageing Source: Arthur D. Little Global Broadband Report, 2003 IEEE_040308 12 Access PLC competitive solutions– Market Penetration Significant increases in Broadband penetration are forecasted for the next years, with many European and USA markets approaching 50% by 2008 Broadband Penetration in Participating Countries 2003 – 2008 country broadband penetration 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 83% Korea 78% 86% 71% Hong Kong 56% 78% Broadband penetration 64% Taiwan 45% 71% (as % of households) 40% Japan 31% 70% 2003 2008 38% United States 23% 44% 2005 32% Belgium 22% 41% 31% Sweden 21% 40% 32% Austria 19% 40% 34% UK 14% 43% 24% Spain 12% 46% 17% Germany 10% 41% 21% France 9% 30% 17% Italy 7% 34% Market maturity stage Embryonic Growing Mature Ageing Source: Arthur D. Little Global Broadband Report, 2003 IEEE_040308 13 Access PLC competitive solutions–– There are many EU member states without and the investments in new fixed access infrastructure have been delayed or cancelled TechnologyBroadband (per access 10 penetration by Lack of competition in access 8% 7% 6% 0 inh.) – April 2002 5% 4% 3% alternative access infrastructure 2% 1% 0% Sweden Infrastructure competi Belgium Denmark Broadband penetration percentual Netherlands points increase penetration2002-2003 increase – 2002-2003 Austria 14% DSL Germany 12% Sources Singapore 2002” (Developed by ArthurCable D. Little modem for the PLCFinla Utilitiesnd Alliance), DG Information Society, October 2003, Arthur D. Little Gl Spain tion vs. Broadband Study, October: ECTA 2003 2002, OECD 2001, “White
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