Current Solutions to Deliver Very High Speed Broadband

Building the Fibre Nation

Alberto Lotti Director Strategy, Solutions & Marketing Alcatel-Lucent Italy Cluster The starting point for FTTx: the bandwidth equation

bit rate [Mb/s] FTTH > 75 Mbps 180 VDSL Theor. max 160 VDSL DSM L3 VDSL current 140 ADSL2Plus

120 ADSL

100

HDTV 40

2 x 20 1 x 0 0 200 400 600 800 1000 1200 1400 1600 1800 2000 loop length [m] Coverage Italian territory: 60% 80%

InvestmentsInvestments (CAPEX(CAPEX perper subscriber)subscriber) OperationsOperations (OPEX)(OPEX)

CAPEX per Subscriber €2,500 P2P AE GPON

CO High Power High Power Low Power €2,000 -20% Power, space, ODF Big Space Small Space Small Space

€1,500 OSP Passive Active Passive Power, space, ODF €1,000 ACTIVE OSP Horizontal Feeder fiber 1 sub per 24 subs per 32 sub per

€500 OSP Vertical RoW, ducts, aerial fiber fiber fiber

HOME CO 10 km - >>20km – 20 km – €0 max 20k > 100k > 100k P2P GPON consolidation subs/CO subs/CO subs/CO Case: 1Mio subs, 20% FTTH penetration

GPON is the best option for mass-market FTTH

Tecnologie abilitanti: ¾ GPON ¾ Point-to-point fibre ¾ VDSL2 Caso per caso si sceglie di terminare la fibra dove conviene

Hong Kong FTTx home passed (% HH) 80% South Korea Japan 5Mio BB Subs 60% FTTN VDSL Switzerland FTTBuilding Belgium 40% FTTHome USA Taiwan Tbd Germany Sweden 20% China Denmark Turkey Canada Italy Poland France Argentina Netherlands Mexico 0% Brazil Australia Spain Russia UK India 0% 20% 40% 60% 80% 100%

Source: Alcatel-Lucent analysis – industry blend Broadband subscribers (% Households) France includes FTTB from cable operator

Contributions of different FTTH network deployment phases to climate change

4. Passive fiber network deployment 78%

5. Network power consumption 3. Transport 6% 0%

1. Cable and 6. End of life passive 2. Active 1% equipements equipment production production 8% 7%

The environmental impact will be positive within less than 15 years The environmental savings are increased by 2.3x after 15 years i.e. 780 kg eq. CO2 or the equivalent of a car traveling 4 600 km /user/year

Source: FTTH Council Europe, PriceWaterhouseCoopers

Payback

l i

e period

r e

a Terminals – Billing – Call Centres 6-24 Month

c i

c Content, IMS & IPTV

r l

e application servers

e 3-5 Years

f Communication Networks s

t 5-7 Year

c n

I Access – Aggregation - Core

e o

v Dark Fibre – Power Supply – Shelters

s 15-25 Year

I v

a Trenches – Pipes – Ducts – Masts – Sites

P I

Network funding & sharing should vary accordingProportionate to geographical Investment segmentation

Market Driven Risk Driven Policy Driven Areas Areas Areas

The % of risk increases More civil the % of Private Lower RoI sharing Sector Public required to meet the Less civil Sector business More Density Primary case Demand infrastructure Aggregation Dark fibre Labeling Precabling Backhaul Access to public infrastructure

24 April 2008 - France to require apartments to come wired

PARIS: The French government said Thursday that it planned to require builders to install fiber- optic cables in new apartment buildings to increase the introduction of fast broadband Internet. As part of a proposal to be voted on by Parliament "before the summer," the government will seek to make fiber-optic cabling a requirement for all construction projects of 25 or more apartments, said Luc Chatel, a government spokesman.

The proposed law should allow all network operators access to buildings, Chatel said. Operators should agree among themselves whether and how to share local neighborhood switching nodes, and the government will leave it to French telecommunications regulator Arcep to deal with competition issues that go beyond building access, Chatel said.

http://www.iht.com/articles/2008/04/24/technology/fiber.php