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FTTH: the Keys to Successful Deployment

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FTTH: the Keys to Successful Deployment ALL THINGS CONSIDERED [ Number 1 - February 2015 ] FTTH: the keys to successful deployment Part of the Orange group EUROPE MIDDLE EAST Sofrecom S.A. Sofrecom Dubai & Qatar 24, avenue du Petit Parc Dubai Internet City 94307 Vincennes Cedex Building 3, Office 103 France P.O. Box 500425 T + 33 1 57 36 45 00 Dubai [email protected] United Arab Emirates T + 971 4 446 4792 Sofrecom Poland [email protected] Grojecka, 5 02-019 Warszawa Sofrecom Jordan Poland Office Orange Jordan T + 48 22 543 46 00 City Centre [email protected] Jabal Amman 1st circle Post Office Box 1689 11118 Amman LATIN AMERICA Jordan T + 962 775 22 09 99 Sofrecom Argentina [email protected] Reconquista 609 - C1003ABM Buenos Aires Argentina ASIA T + 5411 45 15 90 00 [email protected] Sofrecom Indonesia Graha Aktiva, 4th floor JI. HR. Rasuna Said MAGHREB Blok X-I Kav.3 Jakarta 12950 Sofrecom Algeria Indonesia 6, rue des frères Kadri - Hydra T + 62 21 52920350 Alger [email protected] Algeria T + 213 21 60 70 67 Sofrecom Thailand [email protected] Zuellig House, 5th Floor 1-7 Silom Road, Silom, Bang Rak Sofrecom Services Maroc Bangkok 10500 Technopolis Thailand Bâtiment BO - 2ème étage T + 66 2 784 7999 11100 Sala Aljadida [email protected] Morocco T + 212 5 37 27 99 00 [email protected] Sofrecom Tunisia Immeuble Matrix Rue du Lac Constance Les Berges du Lac Tunis Tunisia T + 216 71 162 800 [email protected] FTTH: the keys to successful deployment [ All Things Considered ] Edito Telecom operators must constantly look to the future, reinventing their business unceasingly to enchant and simplify the lives of their customers, day after day. Network transformation is a cornerstone of this quest for the supreme customer experience, since it enables operators to differentiate themselves from competitors. The first step is to choose next-generation technologies that are reliable and able to spur innovations while always maintaining impeccable service quality. Optical fiber has already replaced copper in the long distance networks of many operators, but it is not systematically used in last mile networks. When it is, the technology chosen depends on the market, the regulatory and socio-economic context and the operator’s investment capabilities. Orange has decided to deploy fiber to the home (FTTH) in view of its intrinsic performance, transmission capacity and infrastructure durability. Between 2014 and 2020, FTTH connectivity will expand globally by 13% per year, which means that 60% of French homes will be fiber-enabled, and 30% worldwide. FTTH rollout requires billion-euro investments since networks have to be recreated from A to Z. Planning and deployment errors are unthinkable, so operators must take a methodic, rigorous approach. They need the support of a partner with proven specialized know-how to optimize their investment plan, choose a fiber architecture, and then design and implement the network. This is the approach we present in this document. It explains how the men and women of Sofrecom’s Know-How Network can help you invent and build your network of tomorrow. Enjoy your reading! The Know-How Network 4 | Executive summary 16 | Designing an agile, cost-effective architecture 6 | Fiber: heterogeneous deployments 21 | Anticipating the impacts of FTTH on 10 | Understanding the benefits of FTTH network construction and operation Contents 14 | The co-investment strategy Sofrecom, The Know-How Network 3 [ All Things Considered ] FTTH: the keys to successful deployment Executive summary This position paper addresses telecoms players involved in a transition to Very High- Speed Broadband (VHSB). The last two decades have been marked by exponential growth in the production and consumption of digital content by increasingly connected citizens. The result is a data deluge now at zettabyte1 level - and a severe technological headache for network operators. Why is FTTH the VHSB technology able to meet this challenge? What is the current status of optical fiber deployment? How can we roll out reliable networks capable not only of carrying today’s traffic but, importantly, of adapting to future evolutions such as the gigantic bandwidth needs of billions of communicating objects? A contrasted but fast-growing market In June 2013, FTTH was the predominant VHSB architecture worldwide, but with disparities reflecting different market contexts. Asia is incontestably the most mature market thanks to voluntaristic government policies, the dynamism of local players and clear consumer demand. The market is more heterogeneous in Europe and North America due to greater technological fragmentation (VDSL, cable, etc.) and to pervading financial uncertainty. In emerging countries the situation is very contrasted. The United Arab Emirates and Qatar are both exceptions in the Middle East with FTTH penetration of 63% and 43% respectively, despite the fact that the penetration of wireline high-speed broadband technologies across this market is barely 5% (a low rate that belies potentially strong consumer appetency, as evidenced by new network rollouts notably in Kenya and South Africa in 2013). 1 | A zettabyte is 1021 bytes (or 1,000 exabytes or 1 million petabytes). The 4.1 exabytes transiting IP networks monthly in 2006 are likely to become 91 exabytes in 2016, or more than one zettabyte per year. Source: Cisco, The Zettabytes Era, June 2014. 4 Sofrecom, The Know-How Network FTTH: the keys to successful deployment [ All Things Considered ] Only FTTH architecture can meet this challenge Successful deployment requires a methodic, rigorous approach FTTH architectures are technically superior to other wireline VHSB solutions in many respects: higher At a technical level FTTH infrastructure design and capacity, enhanced service quality and reliability, lower deployment requires important choices in terms of the latency, symmetrical downlink/uplink data speeds, lower zones to be covered and hardware and software solutions. maintenance costs, and durability. These attributes are How is the zoning done, how are dwellings targeted? What indispensable for the development of simultaneous, engineering rules should be applied to successfully build out multi-screen services, new conversational services and the local loop? What traps are to be avoided? Faced with so the new remote usages such as teleworking, telemedecine, many issues, to design and build this type of infrastructure tele-education, e-administration, etc. optimally it is vital to be methodic and rigorous. A complex investment for the future A far-reaching transformation Deploying FTTH is however a complex process. Regarding Once the modeling is done, the operator must decide how financing, several investment models are available involving best to subcontract the infrastructure work. How much local and/or national players, private and public, to match autonomy should subcontractors be allowed? How will their the specificities of each market. Co-investment can be a work be supervised? Also the new network will require an judicious choice both to spread the financial risk and to upgrade of the physical, logical and geographic information accelerate the implementation, particularly in countries of system with powerful applications and interfaces between modest profitability. them. This analysis draws on Sofrecom’s FTTH expertise and long experience of network transformations. It provides a snapshot of FTTH evolution and describes its benefits in terms of usages and services. It also spotlights a number of key factors to facilitate FTTH deployment and to engineer a network capable of anticipating the future. Sofrecom, The Know-How Network 5 [ All Things Considered ] FTTH: the keys to successful deployment Fiber: heterogeneous deployments Among the range of high speed fixed broadband (VHSB) technologies, FTTH is now predominant worldwide in terms of both subscriber lines and investment budgets. Asia is the trailblazer leading the way, as illustrated by its numerous national development programs, the dynamism of local players and affirmed consumer demand. The situation is more contrasted in Europe and North America due to greater technological fragmentation (VDSL, cable, etc.) and a high level of financial uncertainty. With almost 200 million homes connected worldwide at the WIRELINE VHSB TECHNOLOGIES end of 20132, VHSB now represents 25 to 30%3 of wireline broadband Internet access subscribers. Among the three Wireline very high-speed broadband is defined principal architectures (see the box), FTTH is now used in in terms of a minimum data rate, which today is almost six homes in ten with VHSB connectivity, ahead generally accepted to be 80 Mbps. VHSB embraces of cable (29%) and VDSL (11%). However there are large several technologies providing different speeds, disparities between regions and countries due to the local FTTH being the fastest. competitive and regulatory frameworks, the existence or not of national programs, and of course the maturity of FTTH/B: Fiber To The Home/Building means fiber consumer usages. deployed up to the base of the building after which the copper subscriber line is used. Asia still driving FTTH FTTN: Fiber To The Neighborhood. Asia is the FTTH pathfinder, thanks to ambitious national projects and the support of voluntaristic industrial policies FTTC: Fiber To The Curb. as in Japan (u-Japan, 1999), South Korea (u-Korea, 2003), Singapore (Intelligent Nation 2015, 2005) and Australia FTTLA: Fiber To The Last
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