nextgen 2011 edgar aker prysmian

FIBRE TO THE COUNTRY:

MAKING SUPERFAST RURAL BROADBAND HAPPEN

NextGen11 Conference – Bristol November 15th – 16th 2011

Fibre-to-the-Country NextGen11 event Bristol | Prysmian Group | November 17, 2011 2 of 34

TABLE OF CONTENTS

1.  Introducing the Prysmian Group Building the future with innovation

2.  NextGen networks in Rural Europe Issues at hand in the European landscape

3.  The cost of an NG broadband

network Creating clarity about total cost of ownership

4.  Reducing cost through innovation Specific cabling solutions for Rural UK

5.  Summary


PRYSMIAN GROUP – Business Breakdown

2010 Sales (€B, pro-forma)

€ 7.0 B

By Business Areas

€ 7.0 B

By Geographical Areas

(*) Net of intragroup eliminations


PRYSMIAN GROUP – Partner in work class technology driven projects

Fundy Bay, Nova Scotia, Canada Our submarine composite cables help fuel tidal energy for 750,000 homes

Khalifa Burj Tower, Dubai The world’s highest and fastest elevator installation

St. Pancras Station, UK Low smoke zero halogen cable provide highest possible safety standards

Observation satellites Customised wires & cables provide data for climate change research

Donbass Arena, Ukraine Football fans worldwide will enjoy EURO 2012 in high definition and 3DTV thanks to 200 km of our cable

SA.PEI, Italy World’s deepest (1,630m) & longest (860km) submarine power link connecting the grids of Sardinia and mainland Italy

Connecting Australia High speed communication cables are bringing fibre to 93% of Australia’s residential and business premises

Project Borwin2, Germany Submarine and land cable connections link two offshore wind farms to German mainland


PRYSMIAN GROUP: Global number 1 fibre manufacturer

Source: CRU Worldwide Telecom Cables Market Report Plus - August 2011


PRYSMIAN GROUP: Excellent factory footpring in the UK

•  Prysmian Group has a strong legacy in the UK market

•  5 production sites around the country

•  Active in 5 (sub) market segments: –  Trade & Installers (T&I) –  Power Distribution (PD) –  High Voltage (HV systems) –  Marine, Oil & Gas (Surf) –  Telecom Solutions (TS) –  Multimedia & Specials

(MMS)

Former Draka

Former Prysmian

Legend:

Aberdare Rhondda Cynon Taff

Derby

Washington Tyne And Wear

Wrexham Clwyd

Bishopstoke Eastleigh

5 Production sites in the United Kingdom – 5 Market segments


PRYSMIAN GROUP: Global No.1 Telecom cable provider

Leading technology Global Telecom leader

•  Global market leader, No. 1 positions in Brazil, Australia, North America and Western Europe

•  Leading in all segments: •  Telecom Solutions

- Optical Fibre Cables

- Connectivity - Copper Telecom Cables

- OPGW Systems

•  Multimedia & Specials - Structured Cable (Datacom)

- Mobile Network

- Signaling cabling - Specialty: Studio & Broadcast,

Datacenter cabling etc.

•  Optical Fibre Single Mode fibre

Multimode fibre

Specialty fibre

Innovative products

•  Clear focus on customer value creating products

•  Bringing you industry changing products like the bend-insensitive BendBrightXS optical fibre

•  Dedicated Fibre-to-the-Home (FTTH) systems to build and deploy a passive access network: XSnet

•  Access to proprietary and industry-leading PCVD and APVD fibre production technology

•  Licensed OVD fibre production technology available

•  Approx. 600 unique inventions corresponding to more than 1.400 patents

•  State-of-the-art, developed in-house cabling technology FlexTube™

NEXTGEN IN RURAL EUROPE Issues at hand in the European landscape


THE FIBRE-TO-THE-HOME DEPLOYMENT IN EUROPE

Source: FTTH Council Europe – FTTH Panorama June 2011


EU Digital Agenda: “The EU 2020 target is internet speeds of 30 Mb/s for all European citizens, with 50% (…) subscribing to 100Mb/s or higher”

EU commissioner of Digital Agenda: Neelie Kroes (NL)

Challenges for Rural Broadband…. Reducing Next Gen cost through Innovation

Governmental National Broadband deployment plans

Stable, still with a huge potential

Stable, awaiting further development New entrants, dynamic markets


GOVERNMENTAL INFLUENCE

•  France received European Commission funding of € 750 million (£ 647M) on Oct. 19 2011 for a “nationwide Mb/s network” to “bridge the digital divide between rural and urban areas”

•  Their national broadband report “Trés Haut Débit” incorporates:

– Tranche 1: Urban – Tranche 2: Smaller cities – Tranche 3: Rural

•  Basic principle: “Regulate tranche 1&2, let funding flow from 1&2 to support tranche 3”

•  Heavy role for ARCEP to ensure “open and non-discriminatory access at adequate prices”

•  “85% urban, 3% small towns, 12% scattered”

•  Government role: “stimulating (...) and creating good conditions (...) to collaborate and invest in broadband”

•  Broadband is “(1) wireless, (2) fixed and potentially (3) Satellite”

•  5 actions: 1.  FUNCTIONING COMPETITION 2.  PUBLIC-SECTOR PLAYERS IN

THE MARKET 3.  SPECTRUM USE 4.  RELIABLE ELECTRONIC COMMUNICATION NETWORKS 5.  BROADBAND THROUGHOUT THE COUNTRY

•  Active government involvement: –  “Deploy shared ducts” –  “home improvement tax allowance” –  SEK 250 Million (£23.7M) incl. EU funding

for Rural Broadband deployments

France - ARCEP Sweden – Swedish Broadband Forum


1. New & Exciting applications that require high bandwidth will drive demand.

Passive Layer

Active Layer

Service Layer

2. State-of-the-art performance of active equipment improving your OPEX (Operating Expenditure).

3. Experience and innovations in the passive network reduce risk and lower CAPEX (Capital Expenditure)

Building a strong business case

Three layers of Telecoms… How are services delivered to the community


The Business Case of FTTx …How to balance network quality & costs

Source: FTTH Council Europe – Business Guide

Fibre-to-the-Country NextGen11 event Bristol | Prysmian Group | November 17, 2011 14 of 30 NextGen11 Conference | Prysmian Group | November 15, 2011 of 30

The Business Case for FTTx …How to balance network quality & costs

Passive network deployments have a cost focus: Capital Expenditure (CAPEX) The one-time costs that are involved in deploying a new Telecom network infrastructure

Operational Expenditure (OPEX) The recurring costs of operating the new Telecom network infrastructure, including maintenance, repair and control costs, and f.e. pole / duct access fees

Focus on Total Cost of Ownership

(TCO)

THE COST OF AN NG BROADBAND NETWORK Creating clarity about total cost of ownership


Challenges for Rural Broadband… Reducing NextGen cost through Innovation

“Is it all about funding?……”

ü  Define your case object: Size (HP/HC)?, What do you want

to do with the network? # Users?

Type of Users?

ü  Build your business case, find

a ROI-model that works for your case.

ü  Make a framework design, create

different technology scenarios and calculate the financial

implications: FTTC vs Wireless; Wireless vs GPON-FTTH; Copper vs P2P-FTTH


[Finance]5%

[Installation]38%

[Connectivity]13%

[Cable]4%

[Civil Works]23%

[Project Management]

10%

[Engineering]7%

Optical fiber cables Connectivity Products Network Engineering Project Management Network Installation Civil Works FTTH Solutions

+ Focus of reducing Total

Cost of Ownership (TCO)

Build a low cost high quality passive network!


Reduce CAPEX Reduce Installation cost Reduce Civil Works cost Using Network Design Software

1.  HIGH LEV

EL DESIGN

2.  Site Surve

y

3.  Detailed N

etwork Desi

gn

4.  Network

OpCmisaCon

= SAVE COS

T

Design a network Plan ahead… to avoid problems in deployment

1. HIGH LEVEL DESIGN ü  Scenario building of the

passive infrastructure for the Business Case

ü  Cost / Benefit analyses on the different topologies

ü  Mix-and-match technology


First network design; Visual; projected on Google Maps or GIS Financial; Creates a BoM and BoL Fast; Create multiple scenarios, i.e.GPON vs P2P Optimisation; Already first design optimisation

Design a network Case Study Kent, United Kingdom - Rural FTTH project


Challenges for Rural Broadband…. Using existing infrastructures

REDUCING COST THROUGH INNOVATION Specific cabling solutions for Rural UK


Bend InsensiCve Fibers (BIF) (ITU-‐T G657A2&B2 standards)

G.657A2&B2

straight fibre as reference

Standard G.652D

‘The fiber that handles like Copper’ Backwards compatibility: full compliance to G.652D Reduces CAPEX and OPEX costs; The best choice for Fiber-to-the-Home

InnovaCve Fiber Technology

“Crea%ng customer value through

innova%on”

INNOVATION: FIBRE TECHNOLOGY


INNOVATION: Fibre Technology

A new world of opportunities opens via

this technology breakthrough!


FIBRE IS APPLIED IN DIFFERENT PARTS OF THE NETWORK

Multi Dwelling Units (MDU)

Cabinets & Closures

Single homes (SDU)

Business & Enterprises

Metro access

Access POP

√  BendBrightXS (G657.A2/B2) √  Enhanced SMF (G.652.D)

√  BendBrightXS (G.657.A2/B2) √  BendBright-Elite (G.657.B3)

√  BendBrightXS (G.657.A2/B2)

√  TeraLight (G.655.E & G.656) √  FreeLight (G.655.D, large effective area) √  RS (G.655.D, reduced slope)

√  Enhanced SMF (G.652.D low loss)

Application in network Recommended fibre (U

ltra

) Lo

ng

Hau

l &

Reg

ion

al B

ackb

one

Met

ro-

Acc

ess

OS

P In

doo

r

Ultra Long Haul & Regional Backbone

√  TeraLight (G.655.E & G.656) √  FreeLight (G.655.D, large effective area) √  RS (G.655.D, reduced slope)

√  Enhanced SMF (G.652.D low loss)


38 mm Inner diameter duct

Reducing CAPEX and OPEX by occupying less volume within existing infrastructures.

CASE 1: (France) Our innovative products lead to cost reduction

Issue at hand Create customer value through innovation

•  Smaller diameter implies more cables per duct •  Current 1,728 fibers allow 2x19 mm cables in a 42

mm calibrated duct (duct 45/50mm)

•  Cost savings by reducing size:

•  New: Now a total of 2,592 fibres (3 cables of 17mm) in the same duct.

•  (OPEX) Cost reduction of 38% (Duct fee reduction)

•  Along 87% of the route, one Ø45 duct is free and available. On the remaining 13%, at least 2 Ø45 ducts have 50% space available.

•  On the overall route, 23.7km requires a single 720 fiber cable at most, and will run in existing duct space. 2.5km require more than one 720 fiber cable.

•  Of this 2.5km, existing duct capacity is enough to cover 1.3km. Digging is required for the remaining 1.2km. 87% has a Ø45 duct free and available.

Fiber backbone


2007: 21 mm 720 fibre ESMF double jacket First time utilising Flextube™ technology 2008:

18 mm 720 fibre ESMF single jacket Exploiting the full benefits of Flextube™ 2009:

16 mm 720 fibre BBXS 200µm single jacket First time utilising new 200 micron technology 2011: ~15 mm

720 fibre BBXS 200sm single jacket The next step in miniaturization

CASE 1: (France) THE NEXT STEPS - Miniaturisation is a trend!

21 mm

18 mm

16 mm

14.3 mm

Goal: 4 cables in 42/45 duct

Fiber backbone


CASE 2: (Europe) Blowable duct solutions

Issue at hand Sirocco®, JetNet® and EaseNet® blowable micro-duct systems

Situation:

•  A mixed Residential / Business area

•  low initial take-up rate expected

•  No existing Right-of-Way (ROW) in place

•  Decision to build a new infrastructure based on ducts;

•  Blowing fibre-optic cables or units offers maximum flexibility

Feeder network

Sirocco JetNet EaseNet

•  Simple, well established blowable solutions to fulfill the need for a flexible fibre system

•  Enabling the customer to scale their passive network to the demands of the end-user without high capital expenditure or extensive network planning

•  Fibre deployment by using compressed air to blow optical cables and EPFUs into micro-ducts

•  Three systems Sirocco, JetNet and EaseNet which are interchangeable and complementary

-  Sirocco consists of pre-installed micro-ducts in tubes into which blown fibre units (EPFUs) are blown

-  JetNet are loose bundled of micro-ducts in a protective duct in which cable and/or mirco-ducts can be blown

-  EaseNet are micro-ducts that can be directly buried as a single duct, these thick walled micro-ducts allow for easy branch off to customers – ideal for FTTH


CASE 2: (Europe) Connectorised blowable cables

Innovation: The next step! Connectorisation in blowable cables Drop part

Feature:

The ferrule of the connector is installed

during cable production (industrialised

process).

Advantage:

Easy connection by snapping on the

connector-housing. No splicing is required on

customer premises

Benefit:

Reduction of (skilled) labor costs..

Prysmian ReadyConnect Blowable preconnectorised cables


CASE 3: (UK) Aerial drop connections

Fibre Distribution

Hub

Lead-In Assembly

Art.nr. Fibres Fibre type

5010682 2 Fibre G.657.A1

5010681 2 Fibre G.652.B

5010683 4 Fibre G.657.A1

5009935 4 Fibre G.652.B

5010684 12 Fibre G.657.A1

5009936 12 Fibre G.652.B


CASE 3: (UK) Aerial drop connections

Bill-of-Materials (BOM): 1x Fibre Distrubution Hub 1,325 m 48f Backbone Cable 20x 8 Way CLJ’s 85 x 25 m LIA’s 22 x 50 m LIA’s 6 x 75 m LIA’s

Fibre Distribution Hub (FDH) 48f Distribution cable

6 x 8f elements

Connectorised Lead-in Joint (CLJ)

Lead-in Assembly (LIA)


Fibre Drop CASE 3: (NL - Reggefiber) Innovation in Home connections


CASE 3: (NL - Reggefiber) RetractaNetXS OSP

LAY the RetractaNet cable from the Outside Distribution Point (ODP) along a main trench.

OPEN the RetractaCable with a knife or using the custom cutting tool; The RetractaNetXS Tapping Box should be installed at all openings.

CUT the designated module or modules at the opening furthest from the access point.

RETRACT (“pull back”) the cut module or modules to the chosen location, using the SmartDrawXS Tool to pull and store the retracted length. The opening is protected by the RetractaNetXS Tapping Box.

PUSH and/or BLOW: the extracted module or modules into a pre-laid micro-duct running from the main cable to the customer premises.

5

2

3

4

SmartDrawXS Steps of the Retraction technique

1 Fibre Drop


CASE 4: (FT - France) Indoor FTTH network - VertiCasa™

Issue at hand VertiCasa™

•  XSnet Indoor: The part of the network from the basement to the front door

•  A quick connection at a low total cost (labour & material)

Fibre Indoor

INSTALL 1

3 CUT 4 RETRACT

2 OPEN

5 PUSH


CASE 4: (FT - France) THE NEXT STEP - Indoor FTTH network

Fibre Indoor

Pre-connectorised Riser Cables •  Plug & play in the basement or entry

point of an MDU •  Reduces the labour hours and

complexity of installation •  High quality terminations are done in

the factory and tested •  Simplifies a multi-operator network •  Allows patching between operators

within the building

Benefit: Simplifies installation &

eliminates splicing

Schematic


1.  Introducing the Prysmian Group Building the future with innovation

2.  NextGen networks in Rural Europe Issues at hand in the European landscape

3.  The cost of an NG broadband

network Creating clarity on total cost of ownership

4.  Reducing cost through innovation Specific cabling solutions for Rural UK

5.  Summary

SUMMARY

THANK YOU FOR YOUR ATTENTION Mr. Edgar Aker BScEE MScBA

Senior Manager Business Development

Prysmian Group – Telecom Solutions

E. [email protected]

M. +31 (0) 6 13 588 491

T. +31 (0) 20 568 4962


The municipality has a population of 23,000 and covers an area of 18.91 km² (7.30 square miles) of which 0.29 km² (0.11 square miles) consists of canals and waterways. This small Dutch community completed a successful fibre optic rollout to 6,000 homes.

Berkel & Rodenrijs Rural FTTH development in The Netherlands

Berkel & Rodenrijs is a small town close to Rotterdam in the western part of the Netherlands.


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