case studies from japan

NTT Access Network Service Systems Laboratories 1 April 20, 2012 SIEPON Seminar, Prague, Czech Republic

April 20, 2012

Ken-Ichi Suzuki NTT Access Network Systems Laboratories,

NTT Corporation

- Panel 2: EPON deployments -

Case Studies from Japan


Global market of FTTH

Huge demand mainly in APAC is continuing （ Worldwide CAGR 25 % ）

FTTH has already been spread in East/North Europe, Middle-East Asia

In CALA, widespread of FTTH will soon launch

From Infonetics Research Analysis March 11

Num

ber

use

rs (

K)

Global forecast of the number of FTTH user

The world ranking of FTTH penetration


Progress of Broadband Infrastructure in Japan

NGN service has almost covered over Japan （Population coverage 90 %）

Number of FTTH user exceeds to 20 M. Market of FTTH will be matured.

Development of optical broadband network will be facing a new era.

From NTT’s annual report 2011

Num

ber

of

FTTH

use

r (M

)

N

um

ber

cellu

lar

use

r (M

)


Progress of broadband service in Japan(1)

Press materials, Ministry of Internal Affairs and Communications of Japan,

“Quarterly data on the number of subscribers, etc., of electrical

communication services in Japan”,

0

500

1000

1500

2000

2500

3000

3500

4000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

40

30

20

10

0

The n

um

be

r of

subscriber

(Mill

ion)

Year

The end of

Mar. 2012

(Forecast)

Broadband (Total)

DSL

FTTH (Total)

CATV internet

21.89

16.31

7.06

5.91

37.00

24.75

18.14

5.47

The end of

Mar. 2013

(Forecast)

FTTH(NTT)

The number of FTTH subscribers is expected to exceed

30 million by the end of March 2016.

Over 30M

Over 20M


FTTH (Total)

21.9M (58.1%)

DSL

7.06M (18.7%)

CATV Internet

5.9M (15.7%)

Others

2.85M (7.5%)

NTT

20.3M (53.8%)

SBB

2.98M (7.9%)

E-Access

1.81M (4.8%)

Others

10.44M (27.7%)

KDDI

2.19M (5.8%)

SFU FTTH

10.12M (49.9%) MDU FTTH

6.19M (30.5%)

DSL

2.45M (12.1%)

Others

1.52M (7.5%)

SFU FTTH

13.27M (60.6%)

MDU FTTH

8.62M (39.4%)

The number of subscribers of

broadband services in Japan (37.7M) Market share of broadband

services

NTT’s broadband services (20.3M) FTTH services (21.9M)

Press materials, Ministry of Internal Affairs and

Communications of Japan, “Quarterly data on

the number of subscribers, etc., of electrical

communication services in Japan” (at the end of

Dec. 2011)



NTT(Total)

16.31M (74.5%)

NTT West

7.09M (32.4%)

NTT East

9.22M (42.1%)

KDDI

2.01M (9.2%)

Electric Power

Supply Company

1.99M (9.1%)

UCOM

0.48M (2.2%)

Others

1.09M (5.0%)

Market share of FTTH Service (Total 21.9M)


NTT has a share of 74.5 % and 16.3 million subscribers of FTTH services

(Flets-Hikari).

NTT has over 13 million subscribers of IP Telephony services (Hikari-

denwa) via FTTH Services.

Press materials, Ministry of Internal Affairs and

Communications of Japan, “Quarterly data on

the number of subscribers, etc., of electrical

communication services in Japan” (at the end of

Dec. 2011)


Cloud & Broadband Optical Services

Keep connectivity will be easily possible anytime and anywhere

Possible to get personalized information whenever we want

Optical and wireless converged broadband will be an important key role

Smart book

Tablet handset （ipad、GalaxyTab、etc）

High-speed wireless access

Smart phone

ONU

Home Wireless Access

WiFi router

WiFi

Backbone NW (NGN)

Cloud Computing

Application Server

Storage Server

Video delivery Server

Health care Recreation

Transportation

School

Shopping

Broadband & Ubiquitous NW (Optical Access & Broadband Wireless)


Broadband Optical Service with High Mobility

OLT

ONU

Hikari-Portable

OLT ONU

Public Wireless LAN

Mobile backhaul Network

Transport Network

Portable wireless router (Hikari-portable) provides optical services high mobility.

Need to offload the mobile traffic (wireless) to optical access (wired).

Broadband services is personalized by means of various “smart handset”


Requirement of Broadband Access Required B

andw

idth

(M

bps)

10

100

1000

1

Web E-mail

2000 2005 2010 2015

IP-TV

-High Definition 4k, SHD ([email protected]) -Multiple Channel -3D Screen

Next-Generation PON

1G-EPON limit

HSDPA

LTE

LTE-advanced

Advanced video services equipment and changing ways of watching video services will spur further bandwidth demand. “mobile traffic expansion issue” would be solved by optical access. Expected Next-generation optical access as a significant platform for future broadband ubiquitous services


CAPEX/OPEX reduction

Bandwidth per user

now

Re

ve

nu

e/C

ost

pe

r u

se

r

future

Target cost

Cost

Revenue

1G shared 10G shared

Operators keep CAPEX reduction strategy for strength of financial basis

Higher capacity network will lead to increase of network

Cost reduction per user to the same level as the existing system is key

0

100

200

300

400

06 07 08 09 10 11

14

16

18

20

22

Inve

st

of

FT

TH

(B

\)

CA

PE

X t

o s

ale

s (

%)

From NTT’s annual report 2011


10G-EPON Field Trial

100km uncompressed HD video signal transmission using 10G-EPON

Development of wide-area Dynamic Bandwidth Allocation (DBA)

Remote performance monitoring of PON extender located outside plant

AB

C

D

A : Sapporo B : EniwaC : ChitoseD : Toyohira

Hokkaido pref.

10G-ONUs

10G-OLT

Optical

amplifiers(a) (c)

Fujiwara et al. OFC/NFOEC2012, PDP5D5


Summary

The number of FTTH subscribers exceed 21.9 million now

in Japan.

That is expected to exceed 30 million by the end of March

2016.

Development of optical broadband network will be facing a

new era “Mobility” and “Cloud”

10G-EPON is ready for commercial that has flexible

system configuration and its feasibility was confirmed

demonstrating field-trial.


Thank you!


Introduction

Continuous large investment led the highest FTTH

penetration ratio in Japan.

It makes possible to provide low cost FTTH services.

Profitable services will be needed in order to increase ROI

and/or ARPU and achieve a continuous growth of Telecom

carriers

case studies from japan

Technology

progress of broadband

number of ftth subscribers

ntts broadband services

siepon seminar

generation optical access

broadband total2500

widespread of ftth

ftth totalover