christophe de saint martin
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Christophe de Saint-Martin, Director of Marketing for Western Europe, ZTE“Promising Next Generation PON Networks”TRANSCRIPT
Promising Next Gen PON NetworksFTTH Council Europe 2010 ConferenceFeb 25th, 2010
By Christophe de Saint-Martin
Director of Marketing for Western Europe
Agenda
� Market Drivers
� Next Gen PON Networks Benefits
� Next Gen PON Networks Challenges
� Evolution paths to Next Gen PON
Market Challenges for Operators
Flat RevenuesFlat Revenues
Increased CostsIncreased CostsLimited BandwidthLimited Bandwidth
�New web-based services drive
bandwidth demand in the access �LTE mobile networks need high
bandwidth for backhaul�50% of the data traffic on AT&T’s mobile backhaul network is iPhone-
generated, despite the fact that only a
few million of their 78 million cellular
subscribers are iPhone users
� Operators want to save money by reducing complexity
of managing multiple networks� Traditional transport technologies are not cost effective
(PDH, SDH)
� Fixed & Mobile convergence will reduce network costs
Revenues
Traffic
Gap between traffic Gap between traffic
and revenue
increases
Gap between traffic
Data Dominant
Gap between traffic and revenue
increases
Revenues
Traffic
Gap between traffic Gap between traffic
and revenue
increases
Gap between traffic
Data Dominant
Gap between traffic and revenue
increases
Voice Dominant
�Gap between traffic & ARPU� Increased bandwidth requirements but revenues
growth is slow
�Operators are looking for
solutions offering
� Higher Performance
� Lower cost� Improve customer
satisfaction� Offer new services to
increase revenues� Fixed & Mobile
convergence
Towards More Symmetric & Higher Bandwidth
Higher Symmetric Bandwidth is and will be NeededHigher Symmetric Bandwidth is and will be Needed
� “Legacy” xDSL is bandwidth limited and offers asymmetric traffic with high downstream bandwidth and
limited upstream bandwidth� More bandwidth symmetry is needed
� TeliaSonera considers that in 2010 “typical” digital home, up to 66 Mbps (DS) & 27 Mbps (US) will
be needed.� Online gaming will “balance” the traffic bringing it back to symmetry..
�Some operators even notice higher traffic in upstream than in downstream� In the case of Hong Kong Broadband, the upstream traffic is 3 times higher compared to the
downstream traffic explained by the successful usage of video cameras uploads
Digital home 2010 bandwidth needs
(TeliaSonera)
Digital TV bandwidth
needs
Hong Kong Broadband
traffic
Uplink traffic is 3 times higher
Balanced traffic
Today and Tomorrow Bandwidth RequirementsWeb surfing
Video conferencing, Surveillance
Gaming, Learning
Web-Hosting
Files sharing
Video upload/download
Network hosted applications & Storage
3D TV
ADSLADSL2+
VDSL2 (< 250 m)
EPON
Residential only
FTTH Technologies
Residential & Business
Mobile Backhaul
GPON
2D HDTV
10G-EPON
2G/3GLTE (450 Mbps/ 150 Mbps)
?
50
100 Mbps Ethernet P2P
XGPON1WDM PON
Next Gen PON Technologies Meet the Future Bandwidth NeedsNext Gen PON Technologies Meet the Future Bandwidth Needs
DSL Technologies
VDSL2 (< 500 m)
Upstream Downstream
1001G5G10G 25 20 15 10 5 5 10 15 20 25 50 100 1G 5G 10G
Agenda
� Market Drivers
� Next Gen PON Networks Benefits
� Next Gen PON Networks Challenges
� Evolution paths to Next Gen PON
Increased CoverageIncreased CoverageIncreased CapacityIncreased Capacity
What are Next Gen PON Key Benefits?
CO
0.5 20/30 60
Long
Reach
TDM PON
TDM
PON
100
Mbps
1.25-2.5
Gbps
VDSL2 EPON/
GPONNext Gen
PON
10 Gbps
50 Mbps
1.25 Gbps
VDSL2 EPON/
GPON
Next Gen
PON
2.5-10 Gbps
100
Mbps
Next Gen PON Networks will Reduce TCO and Increase Revenues
Next Gen PON Networks will Reduce TCO and Increase Revenues
�Increased bandwidth will offer new
services and will increase revenues�Higher ports density with higher splitter ratio will offer more subscribers per central
office thus reducing OPEX & CAPEX
�Increased Coverage will reduce the number of Central offices needed in rural areas thus
offering OPEX & CAPEX savings�Operators can close end remove exchanges that will be not necessary: France Telecom could close 95% of its rural COs in Western
France with Long Reach
10
P2PNext Gen
WDM
PON
Kms100
UpstreamDownstreamVDSL2
What are Next Gen PON Key Benefits?
Next Gen PON Networks will Reduce TCO and Increase Revenues
Next Gen PON Networks will Reduce TCO and Increase Revenues
�xPON networks offers lower consumption levels compared to VDSL and P2P technologies
leading to OPEX savings �Next Gen PON OLTs will offer additional savings based on green innovations and higher
split ratio
Green Technology
Green Network ElementsGreen Network Elements
1.8-2.5
3-5
VDSL
DSLAM
P2P
Switch
GPON
OLT
(*)
Network Element
<0.3
W/port/subs
(*) 64 subscribers
Lower cost per MbpsLower cost per Mbps
1.8-2.5
EPON
�Next Gen PON Optics costs are higher due to
higher performance levels� The cost of 10G-EPON will decrease compared to EPON: In 2012, the cost per Mbps of 10G-
EPON will be more than 80% lower than EPON� The cost of XGPON1 will decrease compared to GPON: In 2012, the cost per Mbps of XGPON1
will be more than 58% lower than GPON
10G-EPON
82%
1.8-2.5
GPON XGPON1
58%
Next Gen
PON OLT
(**)
<0.1
(*) 128 subscribers
Note: Cost per Mbps based on 32 connected subscribers (OLT +ONT CAPEX)
Unified xPON Platform Reduces OPEX & CAPEX and Preserves Initial Investments
Unified xPON Platform Reduces OPEX & CAPEX and Preserves Initial Investments
GPONGPON P2PP2P
Step 2: GPON /10G-EPON/P2P
�Green Technology� Lower power consumption with newest design &
innovative features
�Optimized OAM� Unified Operation & Maintenance for different
xPON technologies
�Cost efficient industrial chain :� Unified chipsets & modules for different xPON
technologies
�Flexible Platform� Common Chassis & backplane for GPON / EPON /
P2P/ 10GE PON / XG-PON 1/ WDM-PON cards
�Next Gen PON Readiness� Lower upgrade costs: Only 1 new module is needed
for the upgrade to 10G-EPON (or XG-PON1 or
WDM- PON) compared to a traditional design
Reduced CAPEXReduced CAPEX Reduced OPEXReduced OPEX
Step1: GPON /P2P
Benefits of Unified xPON Access Platform
Step 4: 10G-EPON /WDM PON
Only 1 new module is needed
Step3: 10G-EPON /P2P/WDM PON
Only 1 new module is needed
GPONGPON P2PP2P
10G10G--EPONEPON
10G10G--EPONEPON P2PP2P
WDM PONWDM PON
WDM PONWDM PON10G10G--EPONEPON
Unified xPON Access Platform
OLT C300
OLT C300
ExtenderBox
Fixed
GPON/EPON/XG PON/10GEPON
GE
Hybrid PON
WDM PON
GE/FE(P2P)
XPON(Mobile backhaul)
ONU
MDU
splitter
splitter
xDSL
VDSL/FE
FTTC
FTTB
FTTH
FTTH
Business
Residential
NodeB
eNodeB
Packet Transport /SDH/DWDM GE/
10GE
STM-1/E1
RNC
GGSN
SGSN
MobileMGW
HLRMSC Server
Internet
40KM
20KM splitter
CoreCore AggregationAggregation AccessAccess
20KM
IPTVsoftswitch
Service Server
CATV
Agenda
� Market Drivers
� Next Gen PON Networks Benefits
� Next Gen PON Networks Challenges
� Evolution paths to Next Gen PON
Which Challenges for Current PON Networks?
Cost per SubscriberCost per SubscriberRegulatory FrameworkRegulatory Framework
�A “one size fits all” regulation is not possible in
Europe �Infrabased competition (“passive access”) is the
prefered solution encouraged by EC �Unbundling is only possible with point to point technologies like VDSL, Ethernet P2P and WDM
PON� Recent regulatory decisions in Big 5 nations
should speed-up FTTx roll-outs
�High cost to deploy PON networks compared to VDSL
with 70-80% for civil works�In Europe, 81% of the FTTH networks are using P2P
technology�GPON is a more cost effective approach
than P2P especially in low density areas
�Duct sharing will decrease the cost of civil works
Cost per home passed in an urban setting
VDSL2
P2P
PON
Ductsharing
Unbundling
ActiveLine
Access
Bitstream
Sources: Idate / Ventura Team
�Global Warming challenge� The communication industry amounts to 2% of global CO2
emission, according to Gartner’s report� Operators are addressing this issue & ambition to improve
their network energy efficiency:� BT: aims to reduced emissions by 80% before 2016
�Technology Innovations are expected and necessary� Equipment vendors have to increase power savings with
new hardware design and Software features
Green Industry Challenges
Innovation is Needed to Decrease Power Consumption and Preserve Lower TCO
Innovation is Needed to Decrease Power Consumption and Preserve Lower TCO
Automatic Switch offAutomatic Switch offNew ChipsetsNew Chipsets
PCB DesignPCB Design Adjustable Speed FanAdjustable Speed Fan
Agenda
� Market Drivers
� Next Gen PON Networks Benefits
� Next Gen PON Networks Challenges
� Evolution paths to Next Gen PON
Compatible: existing OLTs, ONTs & OSP are reused
Possible Migration Paths to Next Gen PON
EPON EPON
GPONGPON 10G/2.5G XG-PON1
10G/2.5G XG-PON1
10G/10G EPON
10G/10G EPON
10G/10G XG-PON2
10G/10G XG-PON2
WDM PON
WDM PON
TDM/WDM PON
TDM/WDM PON
Standardized
?
Proprietary
P2PP2P
Deployments
Deployments
Deployments
2009 2010 2011 2012 2013 2014 2015
?
GPON10G/10G
EPON
GPON
Possible Coexistence Leads to Preserved Initial Investments
Possible Coexistence Leads to Preserved Initial Investments
Legacy NetworkLegacy Network Migration to 10G-EPONMigration to 10G-EPON
GPON ONUs
10G/10G PON ONUsCO CO
GPON ONUs
ODN ODN
No change in existing Optical Data Nodes
No change in existing Optical Data Nodes
No Change in existing GPON ONUs
No Change in existing GPON ONUs
No overlaps in Wavelengths
No overlaps in Wavelengths
XG
PON1
GPON
XG-PON1 ONUsCO
GPON ONUs
ODN
WDM1r
Migration to XGPON-1Migration to XGPON-1
GPON and Next Gen PON Coexistence
TDM
PON
TDM
PON
Possible Coexistence Leads to Preserved Initial Investments
Possible Coexistence Leads to Preserved Initial Investments
Legacy NetworkLegacy NetworkMigration to TDM-PON
and WDM-PON
Migration to TDM-PON and WDM-PON
TDM-PON
ONUs
WDM-PON
ONUs
CO
TDM-PON
ONUs
CO
ODN
TDM PON and WDM PON Coexistence
Passive TDM PON splitter
Passive TDM/WDM filter
Passive WDM mux/demux
ODN
100 km
20 km
20 km
No additional active components needed
in Optical Data Nodes
No additional active components needed
in Optical Data Nodes
No Change in existing GPON ONUs
No Change in existing GPON ONUs
No overlaps in Wavelengths
No overlaps in Wavelengths
Higher Coverage up to 100km
Higher Coverage up to 100km
WDM
PON
Take Aways
Higher bandwidth needs, increased networks costs & flat revenues
are the major drivers of Next Generation PON Networks
Higher bandwidth needs, increased networks costs & flat revenues
are the major drivers of Next Generation PON Networks
A unified green and future proof xPON platform offers Innovation,
preserved Investments, lower TCO and convergence benefits
A unified green and future proof xPON platform offers Innovation,
preserved Investments, lower TCO and convergence benefits
Smooth Migration is possible towards 10G-EPON todaySmooth Migration is possible towards 10G-EPON today
We’ll Share with you our innovations & solutions for Next Generation
PON Networks!