NEXT GENERATION NETWORKS FOR MULTIPLE DWELLING UNITS (MDU) MICHAEL EMMENDORFER, SENIOR DIRECTOR OF SOLUTION ARCHITECTURE AND STRATEGY, OFFICE OF THE CTO TABLE OF CONTENTS OVERVIEW ...................................................................................................... 4 MDU MARKET DRIVERS .................................................................................. 5 MDU TARGETED FOR VERY HIGH SPEED INTERNET SERVICE .......................... 6 OVERVIEW OF FIXED WIRELINE TECHNOLOGIES FOR THE MDU .................... 7 COPPER TWISTED PAIR SOLUTIONS ................................................................ 8 VDSL2 Solution ................................................................................................................ 9 VDSL2 Capacity Increase [17] ....................................................................................... 10 VDSL2 Summary Features Set: ...................................................................................... 10 G.fast Solution .............................................................................................................. 12 Summary for Copper Solutions: .................................................................................... 13 COAX-TO-THE-UNIT (CTTU) SOLUTIONS ....................................................... 13 DOCSIS 3.0 .................................................................................................................... 16 DOCSIS 3.1 .................................................................................................................... 17 Summary for Coax / DOCSIS Solutions: ........................................................................ 19 FIBER-TO-THE-USER (FTTU) .......................................................................... 20 EPON and 10G EPON .................................................................................................... 21 CATEGORY 5 (CAT 5) CABLE SOLUTIONS ....................................................... 22 Fast Ethernet (FE) ......................................................................................................... 23 Gigabit Ethernet (GbE) .................................................................................................. 23 DOCSIS CM or EPON ONU for Cat5 Use Case ................................................................ 23 SUMMARY NETWORK TECHNOLOGY OPTIONS FOR THE MDU .................... 24 NETWORK ACCESS LAYER ARCHITECTURES OPTIONS (CAA & DAA) ............. 28 Summary of Centralized Access Architectures ............................................................. 30 Summary of Distributed Access Architectures ............................................................. 31 OPERATIONS ADMINISTRATION MAINTENANCE AND PROVISIONING (OAM&P) ...................................................................................................... 31 CONCLUSIONS .............................................................................................. 31 RELATED READINGS ...................................................................................... 33 Copyright 2014 – ARRIS Enterprises, Inc. All rights Reserved. 2 REFERENCES ................................................................................................. 35 ABBREVIATIONS & ACRONYMS .................................................................... 37 Copyright 2014 – ARRIS Enterprises, Inc. All rights Reserved. 3 OVERVIEW The high-density multiple dwelling unit (MDU) market may see a significant value in offering very high speed internet (VHSI) services. Consequently, MSOs will need an architecture that is capable of supporting the data capacities of today and the much higher data capacity needs of the future. It is estimated that 30 percent of North Americans live in multiple dwelling units (MDUs), which includes apartment complexes, condo associations, townhouses, mobile home parks, retirement homes, dormitories, and fraternity and sorority houses” [1]. In some emerging economies worldwide, this percentage is even higher. It is estimated that approximately 90 percent (90%) of Chinese urban households are in multiple dwelling units (MDUs). The worldwide MDU market for advanced telecommunication services may be under increased threat for cable operators. The threat is coming from traditional competitors like telcos and direct broadcast satellite (DBS) as well as new competitors that are targeting the high-density MDU market. The competitors are increasing focus on the MDU market; this market represents highly concentrated areas for investment where cable may have dominance. The increase competition in the MDU market worldwide may have several contributing factors, such as government influences, new market entrants, and new technologies enabling competition in the MDU. As the cable industry prepares for very high speed internet and IPTV services over next few years, the MDU market has already started. The paper will examine the market for IPTV as well as very high-speed internet services in high-density multi-dwelling units (MDUs). The paper will examine the market opportunities, technologies, as well as network and system architectures. The paper will consider the operational strategies and business models. The paper will examine: 1. MDU market drivers 2. MDU targeted for very high speed Internet service 3. Copper Twisted Pair solutions (e.g. VDSL2 and G.fast) 4. Coax to the unit solutions (e.g. DOCSIS 3.1) 5. Fiber to the unit solutions for Passive Optical Networks (PONs) such as Gigabit PONs (GPONs), Ethernet PONs (EPONs), and 10G EPONs 6. Category 5 (Cat 5) cable solutions 7. Centralized and distributed access architectures 8. A side-by-side comparison of the MDU technologies and architectures Copyright 2014 – ARRIS Enterprises, Inc. All rights Reserved. 4 MDU MARKET DRIVERS The MDU market for advanced telecommunication services may be under increased threat for cable operator’s worldwide market share. The threat is coming from traditional competitors like Telcos and Direct broadcast Satellite (DBS) as well as new competitors that are targeting the high-density MDU market. Additionally, Over-the - Top (OTT) video and telephone providers remain a threat. The increased competition in the MDU market worldwide may have several contributing factors, such as government influences, new market entrants, and new technologies enabling competition in the MDU. In the US market, the 2009 D.C. Circuit Court of Appeals upheld a Federal Communications Commission (FCC) ruling prohibiting exclusivity agreements between multichannel video programming distributors (MVPDs) – particularly cable operators – and owners of multiple dwelling units (MDUs) [1,2]. This ruling is creating competition in the MDU voice, video, and data market. Another major factor placing pressure on the MDU market worldwide for cable operators is the advancement in data networking technology targeted at MDUs. Additionally, the increased adoption of IPTV technology to enable video services over broadband networks is adding to the competitive pressures MSOs are facing in the MDU market [3,4]. In fact, DIRECTV announced plans to deliver video, broadband Internet, and VoIP within high-density MDUs using Alcatel Lucent VDSL 2 technology over phone lines [3]. Verizon has an established plan to bring fiber-to-the-building and target the large MDUs [4]. The MDU may have better economics when compared to the rest of the residential market for network access layer upgrades. The economics may be better for MSOs when compared with other service providers. The MSOs’ use of the existing coaxial network supporting voice, video, and data services over one network may offer an advantage. In an article describing Verizon’s plan to bring fiber to the MDU, a significant challenge remained, which is to “pull anything up the risers, it can be expensive” [4]. However, Verizon has overlaid their twisted pair network with fiber to the home (FTTH) using b-PON or G-PON technology serving the single family unit (SFU) market. In the MDU, the cost of pulling fiber-to-the-user/unit (FTTU) remains a challenge. As Verizon focuses on the MDU market with voice, video, and data services, the use of VDSL2 technology over existing twisted pair may be the preferred network access layer technology [4]. The use of VDSL provides about 75 Mbps of downstream, when within about 500 feet from the MDU-based GPON optical network termination (ONT) with a digital subscriber line access multiplexer (DSLAM) in the basement and the VDSL modem in the unit [4]. This 75 Mbps connection may support IP Video-on-Demand [4]. VDSL2 performance varies widely in published reports, as explained in the network technology section of this paper. Copyright 2014 – ARRIS Enterprises, Inc. All rights Reserved. 5 This paper will examine access network media options such as the in-building wiring network used to connect each unit. It will also examine the technology options that may be used across each media type. The paper will consider the network architectures options when using the technology. In addition to the MDU market, the hotel and hospitality markets could use the in-building network access options discussed here to connect to the guest rooms and conference rooms for data and IPTV services. MDU TARGETED FOR VERY HIGH SPEED INTERNET SERVICE The definition of very high-speed Internet (VHSI) services will vary, as the definition of broadband service did for many years. The United States FCC report in 2010, defined