COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.

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Dr. Ir. Michael Peeters, CTO Wireline Division FTTH Council Münich, February 2012

BUILDING EFFICIENT NETWORKS

COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.

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A MAP OF CAPEXIA

2014

2016

2018

2020

2012

Small screen data High Speed data Entertainment video DOWNSTREAM SUSTAINED BANDWIDTH (Mbps)

DEN

SITY

(H

H/K

M2 )

hi

nter

land

ur

ban

Mobile Wastelands

of Macros

Satellite Swamps Icy Heights

of Capexia Council’

s Promis

ed Land

AlcaLu Copper Mining Co.

“Mordor”

Valley of the Black Swans

COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.

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OVERVIEW

1. ON THE ROAD TO DIGITAL WORLD

2. REQUIREMENTS FOR NETWORK TRANSFORMATION

3. KEY ELEMENTS FOR BUILDING EFFICIENT NETWORKS

4. BENEFITS FOR THE OPERATORS AND END-USERS

COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.

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EMPOWERING A SMARTER WORLD NETWORKS ARE HELPING, TODAY

VDSL2 ~30 Mb/s

ADSL2+ ~10-20 Mb/s

VDSL2 ~30 Mb/s

VDSL2 & vectoring ~50-100 Mb/s

Mobile

FTTN

PON or P2P 100+ Mb/s

CENTRAL OFFICE

FTTB or FTTC

VDSL2 vectoring ~100 Mb/s

VDSL2 bonding ~60 Mb/s

FTTH

COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.

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TRANSFORMATION IS HAPPENING SIGNALS EVERYWHERE

• HD TV, 3D TV • Video streaming • Any service on any device • Multiscreen video • FMC • Video communication

CONSUMER

• Cloud computing • Remote back-up • Large file-sharing • Mobility • Teleworking • Security • Video communication

BUSINESS

• e-health • e-government • e-education • Smart energy • Local community • Universal broadband

SOCIETY

•We can’t predict the future •Based on experience and common sense, we know we have to be prepared

•What did we see 15 years ago ?

BE READY ?

BANDWIDTH APPLICATIONS

COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.

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Devices 1.2 billion IP-enabled

devices by 2014

Users 680M fixed BB users

by 2015

IT'S VIDEO…

Sources: Bell Labs analysis

37% of internet traffic during primetime

is online video

Video ~ 70% of internet

traffic by 2014

… DRIVING SUSTAINABLE INCREASE IN NETWORK CONSUMPTION

x x

2007 2011 2015

300

600

Fix BB users [M]

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SO WHAT ABOUT THE NETWORK? FASTER, BIGGER AND MORE…OF THE SAME ?

Bandwidth

Differentiated QoS

Latency Security Reliability

Each person 2 devices + each household 4 TVs + each room 8 sensors, used for 5 purposes

COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.

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LEADING TO 3 IMPERATIVES FOR THE NETWORK SCALABLE BANDWIDTH … at the lowest cost per bit

EMBEDDED INTELLIGENCE … to enable differentiated services

SUSTAINABILITY … for eco and cost effectiveness

ONE ALL-IP CONVERGED NETWORK OPTIMIZED FOR MASSIVE VIDEO DELIVERY

COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.

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SCALABLE ACCESS BANDWIDTH AT LOWER COST PER BIT

LOOK AT THE BIG PICTURE

CAPEX OPEX FUTURE PROOF

FLEXIBILITY

• Passive network • Networks are not homogeneous

• Technology and business models are changing

• Incremental cost per home

• CO consolidation

• Don’t lock into technology or deployment type

•To reach everybody you will need flexibility

• Design your network so that you can change it easily

COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.

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Distribute IP Service Edge Add Service Intelligence

FROM 3-PLAY

TO NEXT GEN. SERVICES,

NEXT GEN.

DEPLOYMENT &

OPERATIONS

EMBEDDED INTELLIGENCE FOR NEW GENERATION OF SERVICES

IP ROUTER ACCESS END-USER

• Content closer to the subs (on-net CDN) • Enable policy-based control • Offload wireless traffic

• Lower over-subscription rates • Boost sustained IP flow rate per sub • Enable transition to IPv6

Vertically integrated networks “silos”

Inadequate architecture for massive video streaming “Best effort” mode

COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.

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SUSTAINABILITY WILL BECOME A GIVEN

2007: ICT contributes 2% to global GHG

E-Health

Smart Buildings

Smart Transportation

Smart Communitie

s

Smart Grids

2020: ICT can offset 5x its own carbon footprint

Huge Opportunity Reinvent scalable networks that Maximize energy-efficiency Reduce total-cost-of-ownership

Passive networks

Power efficient elements

By 2015, demonstrate architectures and technologies that yield a 1000-fold improvement in network efficiency

• New generation of chipsets • Passively cooled remotes • Increased density • NG PON

• No active equipment in OSP • Smart digging • Duct sharing

COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.

12

A MAP OF CAPEXIA

2014

2016

2018

2020

2012

Small screen data High Speed data Entertainment video DOWNSTREAM SUSTAINED BANDWIDTH (Mbps)

DEN

SITY

(H

H/K

M2 )

hi

nter

land

ur

ban

Mobile Wastelands

of Macros

Satellite Swamps Icy Heights

of Capexia Council’

s Promis

ed Land

AlcaLu Copper Mining Co.

“Mordor”

Valley of the Black Swans