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Broadband Future is not Where it Used to Be Broadband Future is not Where it Used to Be – Stig Stig Persson Persson – page page 208 208 The Broadband Future is not Where it Used to Be The Broadband Future is not Where it Used to Be Stig Persson Stig Persson ©Ericsson AB - Commercial in Confidence Mr. Toru Nagasaka, Session Chairman Our second speaker this morning is Mr. Stig Persson from Ericsson. He is general manager of Broadband Access and Broadband Service in Business Unit System. He also has been leading the broadband technologies. Mr. Persson will present to us an overview of broadband applications including devices and services designed for home networks, such as multi-service gateways and interactive television. He will also introduce access technologies to the residential market and broadband technologies inside individual homes. Mr. Persson please be so kind to start your presentation. Mr. Stig Persson Good morning. I am going to present Ericsson’s view on the future when it comes to broadband. We see a future both for the fixed and for the wireless. In the next 10 years there will be an evolution you never have thought about 4 or 5 years ago.

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Page 1: The Broadband Future is not Where it Used to Be · The Broadband Future is not Where it Used to Be Stig Persson ©Ericsson AB - Commercial in Confidence ... – 4*Ethernet 10/100BASE-T

Broadband Future is not Where it Used to Be Broadband Future is not Where it Used to Be –– StigStig PerssonPersson –– page page 208208

The Broadband Future is not Where it Used to Be

The Broadband Future is not Where it Used to Be

Stig PerssonStig Persson

©Ericsson AB - Commercial in Confidence

Mr. Toru Nagasaka, Session ChairmanOur second speaker this morning is Mr. Stig Persson from Ericsson. He is general manager of Broadband Access and Broadband Service in Business Unit System. He also has been leading the broadband technologies. Mr. Persson will present to us an overview of broadband applications including devices and services designed for home networks, such as multi-service gateways and interactive television. He will also introduce access technologies to the residential market and broadband technologies inside individual homes. Mr. Persson please be so kind to start your presentation.Mr. Stig PerssonGood morning.I am going to present Ericsson’s view on the future when it comes to broadband. We see a future both for the fixed and for the wireless. In the next 10 years there will be an evolution you never have thought about 4 or 5 years ago.

Page 2: The Broadband Future is not Where it Used to Be · The Broadband Future is not Where it Used to Be Stig Persson ©Ericsson AB - Commercial in Confidence ... – 4*Ethernet 10/100BASE-T

Broadband Future is not Where it Used to Be Broadband Future is not Where it Used to Be –– StigStig PerssonPersson –– page page 209209

Is there a killer broadband application?Or is it all about creating a killer broadband environment …

Kerosene lamp

ElectricityNetwork

Lamp Who could have predicted,beyond 10A/16A fuses?

BroadbandNetwork

28.8-56kDial-up access

???Who can predict beyond

Bandwidth & IP capabilities ?512k

Best Effort

If you take this slide and think about what happened 130 years ago when the electric lamp was invented. In those days you did not have any clear view of the future of electricity. The starting application in the electric network was the lamp. It was used as a tool to have a better environment in your home or at your business. After that we have witnessed a lot of new appliances and industries to utilize the electricity network.We can take the same similarities and look, what happened in broadband networks and in the internet, which was invented in 1972 with a first connection between Santa Barbara and San Francisco. Then 6 to 8 years ago we started to introduce internet with a dial-up access covering speeds up to 56 kbit/s. In the future, we expect to see the speed to go up much higher and new industries will enter this arena. The picture and TV will become the important applications.

Page 3: The Broadband Future is not Where it Used to Be · The Broadband Future is not Where it Used to Be Stig Persson ©Ericsson AB - Commercial in Confidence ... – 4*Ethernet 10/100BASE-T

Broadband Future is not Where it Used to Be Broadband Future is not Where it Used to Be –– StigStig PerssonPersson –– page page 210210

Transformation of Fixed Revenue Streams

Fixed VoiceCommunication

64kNB

Fixed MultimediaCommunication

Digital ContentConsumption

Home usage ofMobile Services

10MBB

AlwaysBest

Connected

-MultiMedia-Broadband

-Mobility

Telephony Subscription Internet Subscription

The telephony network was invented back in 1876 by Alexander Graham Bell. So it has been with us for almost 140 years. Now we can see that internet is going to take over the telecommunication network rapidly. There is demand for higher speed in the network. For the next couple of years we can expect a speed with a minimum of 10 Mbit/s for eachsubscriber. There will be a split between two or three different types of communication services. Digital content: That is where today’s TV normal in most of the houses in the world will evolve to another TV. Another change will occur with the regular telephone which will become more media rich. You will see more functions like video telephony. There will also be a lot of new appliances or devices in the network. The important thing in the future is to have a network where you can always be best connected with all your devices. Therefore broadband will take a major part in this scenario together with the evolution of mobility. Today we use the mobile networks mainly for voice, but in the future it will be used for all the services the fixed broadband networks are used today.

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Broadband Future is not Where it Used to Be Broadband Future is not Where it Used to Be –– StigStig PerssonPersson –– page page 211211

))))))))))))

The Networked Home

BroadbandAccess

))))))))))))

))))))

))))))

We can expect in the next 10 years or so to have a connected home. The important point in that connected home will be some type of intelligent device. Today we call it the residential gateway, which you can see in the middle of the picture. That box, a kind of communication center or hub, will be connected to various devices, such as a video recorder, a TV or a media center to store your data and pictures. You may even expect in your future home a wireless base station as a connection to the mobile wireless network.

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Broadband Future is not Where it Used to Be Broadband Future is not Where it Used to Be –– StigStig PerssonPersson –– page page 212212

Broadband affordability Broadband affordability –– Key to Universal PenetrationKey to Universal Penetration

40-50

Monthly charge forInternet access (€)

BroadbandPenetration (%)

20-25Broadband fee

Current penetrationCurrent

penetration

Dial-up

Mass-marketbroadband

Mass-marketbroadband

Here you can see that up to now broadband has been really expensive. But based on the competition the price will quickly go down from €50, which has been the common price for a 512 kbit/s connection in Europe. As you could hear in the presentation from NTT, even the fiber access is down to €30. In the next 3 to 4 years you can expect, that under the changing market conditions the cable industry wants to expand their business. They want to introduce Voice-over-IP (VoIP) services and to compete with the traditional incumbents like BT, France Telecom and RBOCs like SBC and BellSouth, which have controlled this market for 140 years. The only way for them to survive is to start to compete in a very good way.

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Broadband Future is not Where it Used to Be Broadband Future is not Where it Used to Be –– StigStig PerssonPersson –– page page 213213

Rapidly increasing capacity demand per userRapidly increasing capacity demand per user

0

100

200

300

400

500

600

700

kbps

2003 2004 2005 2006 2007 2008year

Average throughput, both First & Second Mile considered

Downstream

Source: Ericsson research

We can expect in a very short time frame from now until 2008 for the fixed network, broadband and distribution of digital TV will be the killer application. From that point you have to deploy fiber further out to be in the fiber deep pocket access architecture. So when it comes to your industry, in the short term you can see good signs and the “light in the tunnel”. One of the basic drivers for this is a rapidly increased number of power users in each household. There will also be introduced a number of new applications. In the middle you can see an application called Kazar, which is a P-to-P connection. Today there are a lot of P-to-P connections in the fixed broadband networks. In Sweden the broadband users are downloading around 30,000 movies each night in an illegal way. That is a huge application, which requires a lot of bandwidth. TV and radio distribution is going to be an even more important application in the network. The US market will become deregulated already in 2006, when it comes to voice. When this happens then the cable TV players will start to sell VoIPservices. SBC, Verizon, Quest and BellSouth, the 4 big RBOCs, have to build the appropriate architecture, so they can start to distribute digital TV. Even in that case starting late in 2005 to 2007 they will offer bandwidth around 20 to 25 Mbit/s per customer. So they can distribute 1 HDTV channel and 2 or 3 traditional TV channels over the copper or fiberarchitecture.

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Broadband Future is not Where it Used to Be Broadband Future is not Where it Used to Be –– StigStig PerssonPersson –– page page 214214

Broadcast Application OverviewBroadcast Application Overview

•• Low Speed Streaming Low Speed Streaming –– MPEGMPEG--33–– Broadcast radio (128Broadcast radio (128--192 kbps)192 kbps)–– Financial News, e.g. ReutersFinancial News, e.g. Reuters

•• Medium Speed Streaming Medium Speed Streaming –– MPEGMPEG--44–– Distance learning (384 kbps)Distance learning (384 kbps)–– PCPC--TV (1024kbps)TV (1024kbps)

•• High Bandwidth Streaming High Bandwidth Streaming –– MPEGMPEG--22–– Broadcast TV (4Broadcast TV (4--5.5 Mbps)5.5 Mbps)–– NVOD (3.5NVOD (3.5--4.5 Mbps)4.5 Mbps)

Here you can see some types of broadband applications. The killer now here is that we really are going to have traditional TV distribution applications. But it is also coming to new high definition TV. The bandwidth requirement for this service is 270 Mbit/s, with appropriate coding mechanisms this can be lowered to 20 or even10 Mbit/s. This leads to much more bandwidth in the access than what we have experienced recently.

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Broadband Future is not Where it Used to Be Broadband Future is not Where it Used to Be –– StigStig PerssonPersson –– page page 215215

Pots-era DSL-era Post DSL-era?

Generalized “Moore’s Law”

x 1

1999 2004 2009

x 10

x 100LH

Metro

Access

1 Tb/s15-60 Gb/s

6 Mbit/s

10 Gb/s155-622 Mb/s

64 kbit/s

100 Gb/s1-6 Gb/s

0,6 Mbit/s

First x10Broadband!

Second x10Images!?MMS, Video…

Here is what you have to expect when you plan your future in your business. After the internet bubble burst in 2000, at that time it was common to have 10 Gbit/s in the transport network and 155 or 620 Mbit/s in the metro network. In the access network the speed was 64 kbit/s. We see and plan now for the future transport network 1 Tbit/s, in the metro network 15 to 60 Gbit/s and in the access network 6 to 8 Mbit/s for each customer. Why is that? You can expect that the digital TV is going to change the environment rapidly in comparison to the situation today. Images are another reason. When we start to introduce images in the wireless network we will need much more bandwidth than today. Image and video will be the killer applications for you, which will drive your business in the next 10 years.

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Broadband Future is not Where it Used to Be Broadband Future is not Where it Used to Be –– StigStig PerssonPersson –– page page 216216

MultiMulti--Service Gateways Service Gateways –– base for Home Networksbase for Home Networks

•• High Performance DSLHigh Performance DSL–– ADSL2, ADSL2+, EFMADSL2, ADSL2+, EFM--VDSLVDSL

•• Integrated Home NetworkingIntegrated Home Networking–– 4*Ethernet 10/100BASE4*Ethernet 10/100BASE--TT–– 802.11 b/g (optional)802.11 b/g (optional)

•• IP MultiIP Multi--Service enabledService enabled–– Multiple PVCsMultiple PVCs–– Upstream Shaping, DHCPUpstream Shaping, DHCP–– Routed and Bridged optionsRouted and Bridged options

•• Secure protection of CPNSecure protection of CPN–– Built in FirewallBuilt in Firewall

•• Remote Provisioning SupportRemote Provisioning Support–– Light weight protocol, e.g. DHCP 121Light weight protocol, e.g. DHCP 121–– DSLF TRDSLF TR--062 and its evolution062 and its evolution

There will be multi-service gateways. That box in the middle has to be supported by different types of technology. I think it will be wireless in the home, but it will also be fiber to the point.

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Broadband Future is not Where it Used to Be Broadband Future is not Where it Used to Be –– StigStig PerssonPersson –– page page 217217

New Dynamic BB Access Business Framework New Dynamic BB Access Business Framework Multiple Services / Devices / Service Provider TypesMultiple Services / Devices / Service Provider Types

Internet AccessInternet Access Single Permanent Virtual Connections (PVC)

End-user value Devices Broadband Access Connectivity (CPE-BRAS)

ISPISPISPISP

Premium ContentPremium Content

Online GamingOnline Gaming

Broadcast TVBroadcast TV

TelephonyTelephony

Broadcast radioBroadcast radio

Premium Content

Providers

Premium Content

Providers

GamingProvidersGaming

Providers

BroadcastService

Providers

BroadcastService

Providers

Best Effort(Free way)Best Effort(Free way)

Partioned b/w (Tollway)

Partioned b/w (Tollway)

ISPISP

ServiceProviders

You can see a clear trend for the future, where we need a better network. High speed internet access is the service to look for. But for the players in this business to have a chance, they must have an access networksystem, so they can start to sell both best effort free way services and tollway services. If you want to distribute digital TV, then you need to have functions so you can bill an account for TV service. In the same way, if you want to introduce popular game services you need to have a very fast network and also the possibility to assure that each user has the right functions such as low latency.

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Broadband Future is not Where it Used to Be Broadband Future is not Where it Used to Be –– StigStig PerssonPersson –– page page 218218

Digital TV Situation Digital TV Situation –– OpportunityOpportunity

Unique Value PropositionUnique Value Proposition•• Increased Channel Offering Increased Channel Offering –– niche channels / personal packageniche channels / personal package•• All TV sets supported All TV sets supported –– personal viewingpersonal viewing•• TimeTime--shifted TV/Radio shifted TV/Radio –– no Hollywood fees for operatorsno Hollywood fees for operators•• On Demand Services On Demand Services –– Archived materialArchived material

AnalogAnalog Satellite TV replacementSatellite TV replacement•• Eliminate satellite dish in MTU areasEliminate satellite dish in MTU areas•• Get rid of dish and limited programmingGet rid of dish and limited programming

End of life for End of life for analoganalog terrestrialterrestrial•• Digital Terrestrial limited to 50 channelsDigital Terrestrial limited to 50 channels

Satellite dishes forbidden in certain marketsSatellite dishes forbidden in certain markets

Broadcast Situation Broadcast Situation –– Base for advanced offeringsBase for advanced offerings

Broadcast required as Basic Service in any Video offeringBroadcast required as Basic Service in any Video offeringPremium Sports TV shifting to PPV (Football, Hockey)Premium Sports TV shifting to PPV (Football, Hockey)Satellite distribution remains MPEGSatellite distribution remains MPEG--2 in the near term2 in the near termBandwidth performanceBandwidth performance•• 4Mbps PAL today moving towards 34Mbps PAL today moving towards 3--3.5Mbps3.5Mbps•• MPEGMPEG--4 technically possible but not mainstream for TV Broadcast4 technically possible but not mainstream for TV Broadcast

Hybrid SetHybrid Set--toptop--boxes might evolveboxes might evolve•• Digital terrestrial (Basic Channels) & IP (Premium channels on Digital terrestrial (Basic Channels) & IP (Premium channels on iTViTV))

Internet Radio Broadcasting with CD qualityInternet Radio Broadcasting with CD quality

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Broadband Future is not Where it Used to Be Broadband Future is not Where it Used to Be –– StigStig PerssonPersson –– page page 219219

Source: UBS Warburg, 2002

Interactive Digital Television (IDTV)Interactive Digital Television (IDTV)

• Personal Video Recorder– PVRs digitally record television shows onto a hard

drive. Consumers can create personal libraries enabling them to view programs when they want.

• Interactive Program Guide– The IPG enables viewers to access a detailed

schedule of television programming with the click of the remote control.

• Enhanced TV– Enhanced TV functionality allows viewers to interact

with the television programs that they are watching, choosing camera angles etc.

• Gaming/Gambling– Video gaming, sports betting via the STB

• Video On Demand– Video-on-Demand provides viewers with an

expanded choice in terms of quantity, type, and timing of programs.

• T-Commerce– Single-click purchasing will enable television viewers

to purchase items through the television with minimal effort.

• Interactive Advertising– When a customer clicks on an ad, he is provided with

a variety of additional information, sometimes even with an option to purchase right on the screen.

These are all “Video Services” just like e-mail, www… are “Internet Services”

On a 100 Mbit/s network you can begin to distribute new types ofapplications such as TV and media rich applications, including DVD movie and music distribution. It is inexpensive and there are huge opportunities for new applications.Here I show you some ideas we in R&D at Ericsson expect from a wireless network in the next 10 years.First, I want to point out what will happen with the mobile hand set of the expected 2 billion users. The handsets will be quite cheap, so that they can be sold in the emerging markets, for example in China and India. Asia will be in the driving seat when it comes to wireless network evolution, both in terms of users and deployment.

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Broadband Future is not Where it Used to Be Broadband Future is not Where it Used to Be –– StigStig PerssonPersson –– page page 220220

HDTV (2): 1080 x 1920 p

SXGA: 1024 x 1280 p

WXGA: 900 x 1440 p WidescreenWXGA: 854 x 1280 p Widescreen

XGA: 768 x 1024 pHDTV (1): 720 x 1280 p

SVGA: 600 x 800 pPAL: 625 lines 25 fps i (576 visible) DV: 486 x 720 p 16:9, (DVD)

VGA: 480 x 640 pNTSC 525 lines, 30fps i (480 visible)

VHS: 240 x 320 p (CD)

P800: 208 x 320p DV Raw 270 Mb/sInternal 25 Mb/sMPEG-2 2-4 Mb/sMPEG-4 1+ Mb/sDVD 5 GBytes

TV ResolutionTV Resolution

HDTV MPEG-2 10-20 Mb/s“Blue/UV DVD” 30+ Gbytes

Broadcast & Cable HDTV

Ca 1 Mpixel

Ca 2 Mpixel

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Broadband Future is not Where it Used to Be Broadband Future is not Where it Used to Be –– StigStig PerssonPersson –– page page 221221

IPIP--DSLAMs first step to an all IP/Ethernet accessDSLAMs first step to an all IP/Ethernet access

First mile Second mile

Fiber Deep IP/Ethernet

Access(EFM)

EFM CopperEthernet over VDSL GbE

EthernetEFM P2P FiberEthernet over SMF

EFMEFMAccess Access

nodenodeBRAS

Ethernet Switch

ClassicDSLAM

architectureADSL/SHDSL/VDSL

ATM over DSLE1/3, STM-1/4

ATM/SDH CentralisedBRAS

ATMSwitch

ATM DSLAM

IP-DSLAMArchitecture

(EthernetPowered

ADSL2/2+)

ADSL2/ADSL2+ATM over DSL

GbEEthernet

BRASEthernet

SwitchIP

DSLAM

So far during the last 6 to 7 years it has been DSL technology which has been deployed to expand the capacity in the copper network. It was also ATM to be used between the first mile point and the second. During the last 1½ years there is a very clear trend to go to ADSL plus and GbitEthernet to reduce the number of bottlenecks in the network. In anticipation of digital TV we expect that there will be Gbit Ethernet over fiber to some kind of new access node. That will be coming quickly.

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Broadband Future is not Where it Used to Be Broadband Future is not Where it Used to Be –– StigStig PerssonPersson –– page page 222222

Three Distinct Fiber Access Markets

Real Estate ExpansionIndustrialised Markets

(Green Field)

New network onstructions inAreas with New Single and

Multi-Dwelling units

Build from Traditional 3-playCable TV

First Line TelephonyHigh Speed Internet access

FTT User architectureSMF in P2P or PON architecture

Niche Market200-300k annually / ILEC

Trend Setting CustomersSBC, Verizon – USTelstra - Australia

Infrastructure UpgradeIndustrialised Markets

(Brown Field)

Platform cosnolidation with Maintained service offeringReplace PSTN/ISDN access

Replace 1.st Gen ADSL access

IP Multi-Service PlayInternet AccessVideo over IP

Telephony over IP

Two possible architecturesFTT-Remote with ADSL2+ drop

FTT-User with EFM or FSAN drop

Very High Volume market5-10 year replacement cycle

Trend Setting CustomersNTT, TPE – Japan

KT - KoreaKPN - Holland

Network ExpansionDevelopping Markets

(Green Field)

New network constructions in areas with existing Multi-Dwelling

Units

IP Multi-Service PlayInternet AccessVideo over IP

Telephony over IP

FTT-Bldg ArchitectureMetro Ethernet with Cat5 drop

Very High Volume market2-4 year build-out period

Trend Setting CustomersReliance - India

CT & CN - China

If you look into a house today, there are many possibilities to feed a house with communications services. You can use traditional copper networks. You can also use satellite networks and broadband wireless access solutions, high speed radio access solutions. There are a number of possibilities to sell services. Competition is the only way to drive this market in a cost efficient way.

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Broadband Future is not Where it Used to Be Broadband Future is not Where it Used to Be –– StigStig PerssonPersson –– page page 223223

Who deploys fiber in the first mile ?

IncumbentPTTs

PowerUtlities

CompetitiveCarriers

Local/RegionalAccess Providers

Black FiberProviders

B2

Sydkraft

Comparing the situation in 1996 to that in the year 2000 when the first internet way was introduced, you see that now there are better chances because there is more competition than before.

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Broadband Future is not Where it Used to Be Broadband Future is not Where it Used to Be –– StigStig PerssonPersson –– page page 224224

Accessing the Residential Market

802.11

cable voice, VoIP, TVbroadband data

xDSL voice, VoIP, TVbroadband data

PSTN voice,narrowband data

Satellite TV

GSMvoice,narrowband data

UMTSvoice,broadband data

Source: Pyramid Research, Sept 2003

BWA

• Improved in-home coverage• Improved end-user experience• New billing options

Cellular in/to the home

voice, VoIP,broadband data

Utilizewireline access

Looking back over the last 130 years, there were mainly fixed telephony networks today covering 1.3 billion users. This can be compared with the situation in 1981, when the first analogue mobile telephone service was introduced, and in 1991 when the first digital wireless system was introduced. It took that wireless network 10 years to pass the first billion users.

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Broadband Future is not Where it Used to Be Broadband Future is not Where it Used to Be –– StigStig PerssonPersson –– page page 225225

Home Broadband: The connection for future Home Broadband: The connection for future multimulti--service deliveryservice delivery

•• New bandwidthNew bandwidth--enabled servicesenabled services

•• Access bandwidth Access bandwidth continuously continuously increasingincreasing

•• Devices capability Devices capability upgrade and upgrade and interoperabilityinteroperability

•• Wireless home Wireless home networknetwork

Home servicesHome services

HomegatewayHome

gatewayBroadband Broadband accessaccess

TVTV

Voice over IPVoice over IP

Interactive Interactive gaminggaming

InternetInternet

Visual phoneVisual phone

@@

Security Security

Surveillance Surveillance

cv

WirelessWireless

We expect to reach 2 billion wireless users in late 2006 and the third billion users to be reached in 2011. That means that over time the fixed telephone users will become mobile users.

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Broadband Future is not Where it Used to Be Broadband Future is not Where it Used to Be –– StigStig PerssonPersson –– page page 226226

Revenue per Megabit & MegaByte…

1001000,00020,00021 DVD/min1 DVD/min1000100080008000100 M100 MEnterprise Enterprise EthernetEthernet

150 Local, timed150 Local, timed0,20,21 CD1 CD0,60,655¨̈56 k56 kModem dataModem data

10**10**0,0020,0021 DVD1 DVD10 CD10 CD

5,55,54444512 k512 k““BroadbandBroadband””todaytoday

0,000020,00002

????

220,020,02

1515

SEKSEK

Price/MBPrice/MB(over 24h)(over 24h)

1500* Inter1500* Inter15 Local, flat15 Local, flat

------64 k 64 k Telephony voiceTelephony voice

????2 CD2 CD1,41,41111128 k128 k3G (ISDN)3G (ISDN)

SEKSEKGByteGByteGbitGbitbit/sbit/s

10**10**1 DVD/min1 DVD/min1000100080008000100 M100 MResidential Residential EthernetEthernet

1500*1500*Flash cardFlash card0,10,10,80,810 k10 kGSM voiceGSM voice

Price/24hPrice/24h(tot data)(tot data)

Equiv.Equiv.Max Max Data/24hData/24h

Max Max Data/24hData/24h

BitrateBitrateServiceService

** 10 SEK/day = “1$/day” = 300 SEK/mo * 1 SEK/min = 1440 SEK/24h

So providers of fixed telephone services must look for other applications to be provided over their networks.

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Broadband Future is not Where it Used to Be Broadband Future is not Where it Used to Be –– StigStig PerssonPersson –– page page 227227

Looking back to 1932 and the Dick Tracy comic strips and his high-tech watch, we see it being realized soon. We expect a huge development in handsets, their design and style.

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Broadband Future is not Where it Used to Be Broadband Future is not Where it Used to Be –– StigStig PerssonPersson –– page page 228228

Today 150 million new handsets and 170 million new TV sets are distributed every year. Compare this to what is happening in the wireless industry where there are 600 million wireless handsets added every year. We expect that use will follow one of two major tracks. One will be to use them as a traditional mobile telephone and the other to use them as a personal digital assistant (PDA). You can expect more use to display text and video on electronic devices and to do it faster with more functions.

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Broadband Future is not Where it Used to Be Broadband Future is not Where it Used to Be –– StigStig PerssonPersson –– page page 229229

Handsets capabilities (2006)

•• Quality Digital CameraQuality Digital Camera–– Camera resolution 3Camera resolution 3--5 Mpixel5 Mpixel

•• Memory capacityMemory capacity–– 3232--128 MB non128 MB non--volatilevolatile–– 1616--64 MB RAM64 MB RAM–– 11--4 GB Memory Cards4 GB Memory Cards–– Micro hard drive >4GBMicro hard drive >4GB–– Tiny standalone hard drive 80GB Tiny standalone hard drive 80GB

•• Display resolutionDisplay resolution–– 240x320 pixels (QVGA)240x320 pixels (QVGA)–– 480x640 pixels (VGA)480x640 pixels (VGA)

•• Battery lifetimeBattery lifetime–– standby 440 hstandby 440 h–– voice calls 16 hvoice calls 16 h–– video calls 4.8 hvideo calls 4.8 h–– music listening 32 hmusic listening 32 h–– video streaming 5.6 hvideo streaming 5.6 h–– local game 9.6 hlocal game 9.6 h

•• Digital TV receiverDigital TV receiver

Let us look at how a handset should be designed for 2006 and what type of network will be needed for wireless transmission. Several factors will need to be considered. For videos and camera clips you need camera functions. The mobile handset camera in 2006 will have about 5 Mpixels in a small unit. Comparing this to cameras on the market today, you will find that the good cameras recently have 5 Mpixels. There are 60 million digital cameras in use today in mobile handsets. Memory capacity on micro hard drives for the future handsets will have to be in the range of 4 Gbit. Resolution will be similar to that of a PC. Of course batteries will have to be further evolved. Digital TV receivers which are already in use in Japan and will be built into the mobile handsets.

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Leisure – using interactive broadband access

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Wired access

Fixed wireless

Fixed wireless backhaul

We see that the fixed wireless and the fixed wired access will be merged in the future. This could be an Olympic stadium as in Athens or in Beijing 2008. You would be able to access personalized information either via your fixed access menu or distributed over the wireless network. So you could subscribe for services, to look at athletes from the US or to follow some other special interest.

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Back

bone

Video

Voice

Internet

Network vision 2006-2008 Evolutionary

Ethernet Aggregation Ethernet Aggregation NetworkNetworkEthernet

Switch

Ethernet Switch

Ethernet Switch

BB accessEthernet Access:

xDSL (yellow line) And fiber (red line)

CATV (black line)

Multi-standard mobility, partly seamless (GSM, 3G, WLAN)

Ethernet Switch

Include support forTriple play

MURRU

Ethernet Switch

CPRI

Indoor;WLAN

Legacy RAN including µ-wave

Main-remote with CPRI interface

Analogue fiber DAS

RNC

EdgeNode

Management Serve

WLAN, 802.11, 802.16, 802. 20802.x (mobility)…

Wide AreaWide Area

Local AreaLocal Area

Hot SpotHot Spot

So, as you can see in this slide, we expect that there will be wireless in the household, but there will be many alternatives to traditional copper cable TV and fiber and many opportunities on the wireless side too. In the short term there will be a demand for more bandwidth in the network. There will therefore be more Ethernet and fiber used in the network in the next 4 or 5 years. With respect to the radio development, today we have radio base stations for the traditional wireless network which are fed by traditional radio links. Soon there will be so much capacity to each radio base station, so we are expecting to feed the radio base station via fiber. If fiber technology comes down in price, we will be able to build other types of radio networks with even more fiber applications.

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Back

bone

Video

Voice

Internet

Network vision 2012 Long TermBroadband and mobile converging

IPv6 Aggregation NetworkIPv6 Aggregation NetworkEthernet Switch

Ethernet Switch

Ethernet Switch

Fiber deep access

ABC Always Best Connected

Ethernet Switch

Include support forTriple play and IP RAN for indoor

Ethernet Switch

CPRI

Indoor;WLAN and pico RBSfor WCDMA

IPv6 RAN with BWA backhaul??

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RNC

MU

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3G, 4G, Multi-standard

InfoBroker

WLAN, 802.11, 16, 20, x (mobility), new solution…

EdgeNode

Management Server

Wide AreaWide Area

Local AreaLocal Area

Hot SpotHot Spot

Macro RBS

RRUFTTA

In the fourth generation wireless network, we expect that we will be able to distribute 1 Gbit to each mobile user and to distribute 100 Mbit to a user in a car travelling at 300 km/h. If this is to happen, we must deploy much more fiber and begin to develop new ideas (see the bottom of this slide) with antennas fed directly by fiber so you avoid the loss from electro-optic conversion. You might have heard rumors that there will be radio base stations every 200 m in the fourth generation network. This future network will be much more distributed than today. It will be a fiber network even though it is a wireless network, because you will need to use fiber in order to distribute the information.

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Is there a killer broadband application?Or is it all about creating a killer broadband environment …

Kerosene lamp

ElectricityNetwork

Lamp Who could have predicted,beyond 10A/16A fuses?

BroadbandNetwork

28.8-56kDial-up access

???Who can predict beyond

Bandwidth & IP capabilities ?512k

Best Effort

We are beginning to see the “light at the end of the tunnel” after 3 or 4 terrible years. My feeling is that you in the fiber optic business will have very good business during the next 10 years, based on the evolution we see in fixed and wireless networks.Thank you very much.