FTTH Council Europe, an Industry Initiative

1
FTTH Council Europe,an Industry Initiative

• Jan de Groot
• Marketing Sales Director for OFS in EMEA Region
• FTTH Council Europe Member of the Board
• Sofia 6 October 2005

2
OFS and FTTH

• OFS is a designer, manufacturer, and supplier of
  leading-edge optical fibre products for a wide
  variety of applications. Through Innovation we
  develop and create high performance FTTH
  solutions that delivers fibre directly to the
  home, and supports high-speed Internet, HDTV,
  voice, online gaming, home security, and other
  revenue-generating services.
• Motivation for interest in FTTH
• FTTH Council Europe

3
FTTH Example Software Download over Internet
FTTH (100 Mb/s) 30 seconds
4
Why FTTH? - symmetric servicesHigh Upstream
Bandwidth Required

• Outbound (upstream) traffic bursting to 80Mbps
• Inbound Internet (download) averaging about
  35-40Mbps
• Upstream is consistently twicethe download

Source Grant County Public Utility District
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OPEX Savings with FTTH
6
Revenue Generation not the only motivation for
FTTH Studies show 40 to 70 OpEx Savings from
FTTP
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Revenue Generation not the only motivation for
FTTH Studies show 40 to 70 OpEx Savings from
FTTP

• Telcordia study titled Fibre Revolutionizing
  the Bell Telecom Networks in May 2004
• 43 of operator costs are OPEX
• Moving to fibre could save 30-90 of OPEX
• 57 of benefit of fibre would be in OPEX savings

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Bandwidth How Much Is Enough?
Mbps
100
Active FTTx
75
70Mbps
50
25
ADSL2
22Mbps
ADSL2
0
9Mbps
9
Usability for triple play services Bitrate gt
20Mbit/s
20Mbit/s turns out to be a consensus figure among
SPs as the bitrate to be provided in the mid to
long term to satisfy needs of customers (Heavy
Reading)
10000
1000
100
Bitrate (Mbit/s)
10
1
0,1
0,01
Distance (km)
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Status Fibre-to-the-Home

• FTTH is now a cost-effective alternative to the
  traditional copper loopIn the last 5 years
  there have been substantial reductions in the
  cost of optical fibre cables and electronic
  equipment, and new cheaper construction
  techniques
• FTTH is a true multi-service communications
  access for todays and Next Generation
  Broadband
• FTTH is here and now

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OFS FTTx

• Fibres AllWave ZWP Specification exceeding
  ITU G.652D for better bandwidth and
  performance. Ideal for FTTH networks
• Cables Many specialist types, specially
  developed for fiber access networks Many
  specialist types, specially developed for
  backbone networks
• Connectivity Wide range of Connectivity
  Products, incl. Connectors, Frames
• Experience USA, Japan, Nordics (Finland,
  Sweden, Denmark), Greece Bulgaria about 50
  of recently installed cable is made by OFS
• Partnerships SmartCom Bulgaria AD
  Furukawa Splitters for PON networks Alloptic
  and others Electronics

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FTTH Council Europe

• Council The European Fibre to the Home Council
  consists of Manufacturers, Construction
  Engineering Companies and Academia.
• It provides an extensive, broad-based range of
  experience and knowledge.
• 50 members
• non-profit organization
• founded 2004

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FTTH Council Europe Mission

• Next Generation Broadband is the foundation (and
  driver) of knowledge economy, the next industrial
  revolution.
• We believe that Fibre-to-The-Home infrastructure
  is critical to the long term competitiveness of
  Europe.
• Europe must act now to make it happen!

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The FTTH-Council Exists to

• Provide a knowledge base for information
  gathering and analysis for the FTTH market
• Communicate the business and technical benefits
  of FTTH
• Identify and highlight key market drivers and
  constraints to FTTH deployment in Europe
• Call on policy makers in Europe to be a catalyst
  and to prioritize and facilitate the build out of
  FTTH deployment in Europe by 2010
• Participate in providing education of our
  communities to the benefits of FTTH

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Macro-Economic Point of View

• Knowledge Economy
• we experience a major economic transformation
  (4th economic revolution)
• low-technology manufacturing moves to lower wage
  countries, ICT makes production more efficient
  classical manufacturing jobs are eliminated
• our future is service industry
• new key-competences creativity and innovation
• telecommunication is the foundation for knowledge
  economy (virtual companies, teleworking,
  e-learning,)

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Competetive Point of View

• To maintain competitiveness in the World, Europe
  requires a highly developed IT-infrastructure
  Widespread and affordable broadband access is
  essential to realise the potential of the
  Information Society. (eEurope2005)
• ICT is crucial to ensure Europe's development
  andIt is essential for Europe to achieve a new
  model for development(EU-Commissioner Reding in
  Prague, Feb. 1st, 2005)
• In order to ensure future economic growth, the
  EU needs a comprehensive and holistic strategy to
  spur on the growth of the ICT sector and the
  diffusion of ICT in all parts of the economy
  (Facing the Challenge - The Lisbon strategy for
  growth and employment Report from the High Level
  Group chaired by Wim Kok, November 2004, p. 22.)
• Asia and USA deploy fibre very fast
• Europe is late (see FTTH in Europe and the
  World)

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FTTH in Europe and Around the World

• many FTTx-deployments in USA and Asia
• only slow development in Europe
• some factsfigures

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FTTH in North America

• North America
• Verizon deploys FTTH 1 mio. households by
  31.12.2004, 2 mio in 2005
• SBC deep fibre in access 30 mio. households
  with at least 25 Mbit until 2008
• more than 270 local projects for FTTH
• Why?
• clear regulatory framework
• competitive thread in last mile-access

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FTTH in Asia

• Asia
• Japan NTT will bring FTTH to 30 mio. households
  by 2010 / 2 mio. FTTH-subscribers by 31.12.2004
• Korea government-plan to generate 7,7 billion
  US for BB-network with at least 50 Mbps
• China massive FTTH-deployment in big cities, CTI
  in Hongkong offers 100 MBit for less then 20 US
• Why?
• clear political vision
• high technical affinity

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FTTH in Europe

• Europe is late
• 500.000 subscribers, 2,6 mio. homes passed by
  31.12.2004
• more than 90 of FTTH-subscribers concentrated in
  just 5 countries
• 167 FTTH-projects most of them small and/or
  pilots
• only modest growth in next years
• But
• Regional Development Funds are available for
  Broadband Development.

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Homes Passed in Europe
Source IDATE
22
Subscribers in Europe
Source IDATE
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Conclusion

• FTTH will be the end game broadband-infrastructu
  re
• it is necessary to deploy fibre in Europe to
• stay competitive
• fulfill the bandwidth-demand of new services
• achieve full economic, cultural and social
  benefits of Next Generation Broadband-Networks

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FTTH Council Europeinvites you

• www.europeftthcouncil.com
• FTTH Council Europe conference in Vienna,
  2006The next FTTH Council Europe conference will
  take place in Vienna onJanuary 25 26, 2006.

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OFS invites you

• www.ofsoptics.com

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Contacts

• In BulgariaSmartcom Bulgaria ADMr. Vesselin
  Kaltchev tel [phone]
  vesselin_kaltchev_at_smartcom.bgFor consultancy,
  design, engineering and implementation
• In OFSMr. Thomas Roedder tel [phone]
  230roedder_at_ofsoptics.com For Regional
  Initiatives and co-ordinationMr. Jan de Groot
  tel [phone]jdegroot_at_ofsoptics.com
  For FTTH European Business Development
  initiatives