endesa net factory - oecd.org · endesa network mainly uses medium voltage plc, improving the...

PLC as an alternative for rural and remote broadband access

Porto, October 25th, 2004

Endesa Net Factory

Developing broadband access in rural and remote areas

José Comabella LópezPLC Network Director

1

- PLC -

041025_OECD broadband access in rural and remote areas

Agenda

Introduction to PLC Technology1

PLC for rural and remote access3

Endesa’s Experience on PLC2

Conclusions4

2

- PLC -


PLC technology keeps improving its performance and capabilities, it is already commercially available and offers a great applications potential

OpportunityPLC Areas

PLC

Access PLCNew businesses

Increase profitability of its customers through the cross-selling of new services:

•• AccessAccess: Broadband Internet, Telephony, Video on demand, video conference, …

•• InIn--househouse: Security, automation, LAN, Entertainment, ...

In-House PLC

PLC for Energy Management

New services

• Improvements in Operations Efficiency (Automatic Meter Reading)

• Increase in infrastructures efficiency and Investment optimization

• New added value services

1

2

3

PLC Technology Applications1

3

- PLC -


Uses existing infrastructure with a higher potential coverage than any other access technology

PLC can offer broadband services at transmission rates equivalent or better to ADSL

PLC transforms a conventional electrical plug into a connection point (ubiquity) for advanced telecom services (Broadband Internet Access, Telephony (VoIP), Domotics ...)

PLC equipments are already commercially available

PLC allows for high market responsiveness as the installation is fast

LVSS2

LVSS3

LVSS5

LVSS6

LVSSn

LVSS1

Substation

Terminal

Approx. 500 meters

Repeater (Installed in the Meter Room)

Head End (Installed in the Transformer Station)

Terminal (Installed in the home of the customer)

LVSS4HERepeater

Service

Center

Internet, Telephony and other networks

Medium voltage Low voltage

As an access technology, the use of existing power infrastructure favors PLC cost position versus other technologies competing for the “last mile”

PLC Access Technology Comments

PLC Technology Access Technology

Transformer Substation

1

4

- PLC -


PLC equipment using DS2 chip set (OFDM) is offering the best performance with a maximum bandwidth of 45 Mbit/s for 1G and 200 Mbit/s for 2G

DS2 Chip Set is leading the PLC market with maximum bandwidth of 45 Mbit/s for first generation chip set and 200 Mbit/s for second generation chip set, in both cases using an OFDM modulation. DS2 has signed strategic agreements with the most important world manufacturers such Mitsubishi, Schneider, Sumitomo, Toyocom and others for use its technology

Main.net equipment is using ITRAN chip set in its first generation products. ITRAN chip set uses SS-DS modulation and has a maximum bandwidth of 2 Mbit/s. Is a low performance and low cost technology very easy to deploy

ASCOM was pioneer in the launching of commercial PLC equipment. Its first generation equipment is GSMK based with a maximum bandwidth of 4 Mbit/s. ASCOM second generation equipment is DS2 chip set based

Up to 45 or 200 Mbps Up to1,5-2 MbpsUp to10 Mbps

Medium Voltage Access In-housePLC

Ch

ip S

et

pro

vid

erE

qu

i pm

ent

man

ufa

c tu

rer

* A Schneider Company

** A CISCO Company and American Electric Power

** *

PLC Suppliers Access Equipment

2nd Generation

(not exhaustive)

PLC Technology Equipment1

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- PLC -


European PLC trials and commercial initiatives *

More than 80 PLC initiatives in more than 40 countries show a high interest in PLC technology among worldwide utilities

1 PLC European Overview PLC Experiences

Note: the figure lists some of the PLC commercial projects in progress in October 2004, as well as trials and tests released in press only during 2004*The list is not exhaustive

Source: White Paper on Powerline Communications, 2004

Austria• Linz AG• Tiwag

Czech Rep.• PRE

Finland• Turku

energiaIceland

• Reykiavik Energy

•Ireland• ESB

Italy• ENEL

Norway• Lyse• BKK

Poland• Pattern• Stoen

Portugal• EdP

France• EDF• Cegetel

Germany•EnBW•MVV (PPC)•GWS•Drewag•Stadtwerke Hameln

•Stadwerke Hassfurth

•Energieversorgung Offenbach

EuropeSpain

• Endesa• Iberdrola• Unión Fenosa

Sweden• Vattenfall• Graninge• Skanska• Elforsk

Switzerland• Sunrise/ EEF

UK• SSE Telecom

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After successful experiences, companies are moving on towards commercial initiatives and launches

1 PLC European Overview PLC Experiences

PLC CommercializationMassive technology trialsTrials

PLC initiatives development status*Not Exhaustive

Reykiavik Energy

Source: Arthur D. Little (PLC Survey developed for the PLC Utilities Alliance, December 2002 and July 2003) * Not Exhaustive

Energieversorgung Offenbach

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Agenda




Conclusions4

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Commercialization in Spain (ZGZ and

BCN)

Pilot TrialsPilot Trials

Business AnalysisBusiness Analysis

Massive Trials (MTT)

Massive Trials (MTT)

Institutional Relations

Institutional Relations

Business Models

Business Models

(*) Endesa presides the Board(**) Endesa presides the PLC Workgroup(***) Endesa presides the PLC Utilities Alliance composed by EDF, EDP, EEF, ENEL, Endesa, EnBW, Iberdrola and Unión Fenosa

Pilot Trial in ChilePilot Trial Barcelona and Sevilla

BusinessAnalysis Chile

(Carrier)

Preliminary BusinessAnalysis:

Spain and Latam

MTT PLC Zaragoza

TODAY

Year 2000 Year 2001 Year 2002 Year 2004

Direct, through PLC Forum(*), through UNESA (**), through PUA (***),...

Year 2003

Endesa Net Factory has been very active in the development of PLC activities for the last four years

2 Endesa’s Experience on PLC Endesa’s PLC Field Trials

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- PLC -


Deployment Zones in Zaragoza

In five months a PLC telecommunication network covering 20.000 homes has been implemented

The roll out has been selective on an area and building level

- Complementary to existing infrastructure

- Innovative application of Medium Voltage PLC (Saves investment and speeds up roll-out)

There have been more than 600 interventionsin substations and meter rooms without any interruption of the electrical service

The roll out does not require any specific licenses for the utilization of public space due to the use of PLC via Medium Voltage cables

Comments

The PLC network was rolled out selectively and complementary to the existing fiber network


HFC Zone

PLC Zone

HFC & PLC Zone

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Network Architecture

Switch

City PopSwitch

Core

Switch

HE PLC LV

MINI POP

FOFO

FO

FOFO SS

InternetInternet

PSTNPSTN

ISP

Client’s Flat

CPE

Repeater

Meter Room

FO / MV PLC / xDSL / LMDS LV PLC Inhouse

C l ie n t ’s F la t

C P E

R e p e a te r

M e te r R o o m

C l ie n t ’s F la tC l ie n t ’s F la t

C P E

R e p e a te r

M e te r R o o m

R e p e a te r

M e te r R o o m


C P E

R e p e a te r

M e te r R o o m


C P E

R e p e a te r

M e te r R o o m

R e p e a te r

M e te r R o o m


C P E

R e p e a te r

M e te r R o o m


C P E

R e p e a te r

M e te r R o o m

R e p e a te r

M e te r R o o m

Gateway

Gatekeeper

SS

HE PLC MV & LV

SS

HE PLC MV & LV

SS

HE PLC MV & LV

Core

SS

SS

HE PLC MV & LV

SS

HE PLC MV & LV

HE PLC MV & LV

Public works are not necessaryTime to market

Competitive costUse of existing infrastructure

Endesa network mainly uses Medium Voltage PLC, improving the economics and the speed of the rollout


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More than 300 buildings and 2.103 users were deployed and placed in service in five months, connecting 140 Low Voltage transformers

CPE installations

25 users per week (including repeaters, CPEs, and PC modifications)

More than 70% of users installed in two months

Connection of 140 L/V transformers:

- 56 L/V transformers with optical fibre

- 84 L/V transformers with PLC M/V

Deployment Data

2.103 PLC users

Source: Key Performance Indicators of the MTT, ENF

2103

0

500

1000

1500

2000

4-m

ar

11-m

ar

18-m

ar

25-m

ar

1-ab

r

8-ab

r

15-a

br

22-a

br

29-a

br

6-m

ay

13-m

ay

20-m

ay

27-m

ay

3-ju

n

10-ju

n

17-ju

n

24-ju

n

1-ju

l

8-ju

l

15-ju

l

22-ju

l

29-ju

l

05-a

g-02

12-a

g-02

19-a

g-02

26-a

g-02

2-se

p

Usuarios = CPEs


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Concentration of active Modems per L/V Transformer and Meter Room

# CPEs # MR

0

20

40

60

80

100

120

140

0

2

4

6

8

10

12

14

16

Z01

195

Z01

418

Z08

976

Z01

869

Z01

336

Z01

351

Z02

127

Z01

342

Z01

236

Z02

824

Z01

346

Z02

823

Z01

343

Z01

088

Z01

407

Z01

406

Z01

971

Z01

355

Z01

872

Z01

970

Z00

966

Z01

070

Z15

332

Z01

112

Z00

997

Z0S

HR

O

Z00

979

Z01

072

Z15

333

Z01

000

Z01

011

Z01

081

Z01

116

BA

SR

DS

2

Z01

144

Z01

060

Z00

990

Z01

147

Z01

165

CPEs MR

Concentration in L/V transformers is between 1 and 133 users

20% of Heavy Users are in the 5 more concentrated L/V transformers


Different concentration levels per L/V transformers and Meter Rooms were tested in order to evaluate the impact in the QoS


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INTERNET ACCESS: Users’ distribution per average daily usage

INTERNET ACCESS: Daily total traffic (MB)

Daily traffic Total MB (In + Out)

631

142 21764 96 39

126

10%

3%7%

11%

48%

17%

5%

0

100

200

300

400

500

600

700

De 0

a 5

De 6

a 10

De 11

a 5

0

De 51

a 1

00De

101

a 50

0De

501

a 10

00

> 100

0

Nu

m o

f U

sers

0%

10%

20%

30%

40%

50%

60%

% U

sers

20% of the users with

highest traffic during the Trial

“Heavy Users”

87% of users use the Internet service daily

94% of users use it weekly

The Spanish average Internet usage is 5,3(*) MB daily

20% of users manage more than 100 MB daily (Heavy users)

Comments

Daily traffic average per user: 200 MB

Daily traffic average per user: 200 MB

“Heavy Users”

(*) Source: NetValue, Internet Overview, June 2002Source: Key Performance Indicators of the MTT, ENF

Internet users developed an intense usage of PLC services where traffic symmetry should be highlighted


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TELEPHONY: Daily traffic (Inbound & Outbound)

TELEPHONY: Users’ distribution per average daily usage

Stages

First stage: Only local calls for all telephony users

Second stage: Opening up of national calls communicated to a group of 500 users

Third stage: Opening up of national calls communicated to a group of 500 users

Usage

65 % of the clients use the service daily and 84 % weekly

5,27 Calls per day and user

In Spain the average number of calls per day of the residential segment is 4,2

Calls

Máx.daily:6.352 calls

More than 1,5 million callsMore than 1,5 million calls

Nº Calls per Day

0

1.000

2.000

3.000

4.000

5.000

6.000

7.000

10/9

/02

12/9

/02

14/9

/02

16/9

/02

18/9

/02

20/9

/02

22/9

/02

24/9

/02

26/9

/02

28/9

/02

30/9

/02

2/10

/02

4/10

/02

6/10

/02

8/10

/02

10/1

0/02

12/1

0/02

14/1

0/02

16/1

0/02

18/1

0/02

20/1

0/02

22/1

0/02

24/1

0/02

26/1

0/02

28/1

0/02

30/1

0/02

1/11

/02

3/11

/02

5/11

/02

7/11

/02

9/11

/02

11/1

1/02

13/1

1/02

15/1

1/02

17/1

1/02

19/1

1/02

21/1

1/02

23/1

1/02

25/1

1/02

27/1

1/02

Call In

Call Out Total

10

66% of users

34

142

3247676985121

149192

220

19%

17%

13%

10%7%

6% 6%4% 3% 3%

12%

0

50

100

150

200

250

1 2 3 4 5 6 7 8 9 10 More than

Nu

mb

er o

f u

sers

0%2%4%6%8%10%12%14%16%18%20%

% u

sers

Comentarios

First stage Second stage Third stage


The voice traffic analysis shows heavy usage, specially after providing the possibility to make long distance calls


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Probability to recommend: 3,46Probability to continue: 3,21

General Satisfaction: 4,22

Improbable Less probable Probable Very probable Definitely

Very unsatisfied Unsatisfied Indifferent Satisfied Very Satisfied

0 1 2 3 4 5

0 1 2 3 4 5

Source: User Satisfaction Study, Endesa Net Factory, November 2002

The users have shown very satisfied with the service quality of PLC Internet Access

PLC has been evaluated better than ADSL (4,32 PLC vs. 3,65 ADSL)

The users have shown satisfied with the service quality of PLC telephony

The general satisfaction with PLC telephony was 3,65 compared with 3,99 obtained by incumbent Telefónica

Satisfaction with PLC services

Analysis of the general satisfaction of the trial

and the disposition to continue

The users were very satisfied with the global service offering and the majority showed interest to continue to use PLC services


16

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A C1 License was obtained by Endesa, in order to conduct the Carrier Services (October 2003)

Client: Auna TLC

Date of commercialization : 27th October 2003

Potential market Zaragoza:

- Existing deployment

Potential market Barcelona:

- New deployment in selected areas by Auna

Services provided with PLC:

- Telephony: Voice over IP/PLC (VoIP/PLC) - Internet Access: 128, 300 or 600 kbps

The Commercial Offer was designed combining services and different bandwidths, with competitive prices regarding those of other access technologies in Spain

Characteristics of the Commercial Trial

Endesa is currently commercializing PLC Services in Zaragoza and Barcelona

2 Endesa’s Experience on PLC Endesa’s PLC Commercial Launch

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Agenda




Conclusions4

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The geographical isolation of the rural and remote areas is historically a brake for the economic development, for cultural interchange and, in general, for the access to any type of services

With the advance of the telecommunication technologies, the lack of infrastructures in the rural and remote areas has increased the ‘Digital gap’. In the case of the use of broadband services is specially noted that this technology is focused in urban areas

The low density of the rural areas, highly spreads and with long distances to cover in order to be connected to the telecommunication networks increase the transport infrastructure cost

Due to this later point, to extend broadband networks to rural and remote areas, at the end to the 100% of the population, is not a business for Telecommunication Operators

The access to telecommunications is an economic and social factor without any type of doubt

PLC for rural and remote access Current situation3

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• High capacity

• High cost, could be optimised if Power Line cables are used to support the Fiber Optic cable

Fiber Optic

Satellite

• Minimum infrastructure

• Difficult to provide voice service with standard quality

• Moderate cost

Radio links

• It is necessary a lot of intermediate antennas

• High cost, it needs manage permissions for frequencies and antennas, environmental impact

3 PLC for rural and remote access Transport Technologies

Fiber Optic

Radio link

Satellite

Remote Area

Remote Area

Remote Area

Point of Interconnection

with TELCOS Network

A key issue to develop broadband services in rural and remote areas is to build a transport network that optimize investment and able to offer quality of service

PoP

PoP

PoP

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Electricity arrive to rural and remote areas using Medium Voltage Power Lines. Fiber Optic manufacturers (Alcatel, Pirelli ...) have develop different technologies to install Fiber Optic cables in the Power Lines

OPGW – Optical Ground Wire. The substitution of an existing ground cable by a cable combining the classical functions of a earth wire and telecommunications capacity has a long history

OPPC – Optical Phase Conductor. When the power line is not equipped with a ground wire is possible the substitution of the phase conductor

MASS – Metallic Aerial Self-Supporting. When is not possible to use ground or phase conductors a new cable can be added to the line

ADSS – All-Dielectric Self-Supporting Cables. Same case but without any metallic messenger wire

ADL – All-Dielectric Lashed Cables. Requires to use a ground or phase conductor as messenger wire. Is the fast and most cost-effective technology

OPGW – Optical Ground Wire. The substitution of an existing ground cable by a cable combining the classical functions of a earth wire and telecommunications capacity has a long history

OPPC – Optical Phase Conductor. When the power line is not equipped with a ground wire is possible the substitution of the phase conductor

MASS – Metallic Aerial Self-Supporting. When is not possible to use ground or phase conductors a new cable can be added to the line

ADSS – All-Dielectric Self-Supporting Cables. Same case but without any metallic messenger wire

ADL – All-Dielectric Lashed Cables. Requires to use a ground or phase conductor as messenger wire. Is the fast and most cost-effective technology

3 PLC for rural and remote access Fiber Optic in Power Lines

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Regardless transport technology used to connect remote areas, PLC technology can be interconnected with any other access technology in order to minimise CAPEX of the access network

3 PLC for rural and remote access Access Network

Access Network Architecture

In-Home

In-Home

PoP

PLC

PLC

PLC

PLCPLC

The most easy way to connect PLC equipment to other access technology is across layer two IP interfaces in which should be possible to define QoSusing IEEE 802.1Q/p standards

Wireless technologies such Wi-Fi and WiMAX in a near future could be easily combined inside a PLC network

PLC technology can provide the connection for the different access points in order to minimize cost, to avoid problems of LoS and increase speed of roll-out

Inside houses or buildings can be used to minimize number of antennas

Comments

22

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Agenda




Conclusions4

23

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Technology is able to support massive deployments:

- PLC can offer Broadband Internet Access (> 2 Mbps) and VoIP services- PLC can be applied to low and medium voltage grids- Fast and selective deployment- Interconnection with public Internet and Telephone networks has proven viable - Competitive provisioning times- The market opportunity is evolving very fast

Current regulation framework allows PLC Deployments

Future generations of PLC Technology and price reductions (not only in PLC equipment) are key for competitive massive deployments

Easy combination with other technologies in order to minimize the CAPEX of the access network

Conclusions

Technology Trials have confirmed the viability of a PLC network and Commercial Launches are creating momentum among key telecom players (regulators, potential clients, operators and authorities)

4 Conclusions As Access Technology

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To roll-out a network to provide broadband services to rural and remote areas requires an high investment because is needed to arrive to low density populations over great distances

Average nationwide (Spain) loop cost is about 250 Euros, but this figure doubles and even triples in high-cost rural areas

It is necessary to offer to rural customers similar services and prices that to urban customers

Competition as a solution in rural areas remains questionable

With these conditions there is no business for private initiatives. Never will recover the investment

Government has to reaffirm its commitment to provide universal service support through special help programs

Conclusions

Conclusions As Business in rural areas4

Technology has been confirmed and is commercially available, but in order to be successful in the rural market it is needed the financial support of governments, mainly for the transport network

25

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www.plcendesa.com

For additional information:

ENDESA NET FACTORYRibera del Loira, 60 3rd floor28042 Madrid, Spain

Fax: +34 91 213 48 06 e- mail: [email protected]

endesa net factory - oecd.org · endesa network mainly uses medium voltage plc, improving the...

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