SUPERCOM 2002: Session Net-01

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SUPERCOM 2002 Session Net-01

• Fundamentals of DSL Technology and Applications
  (Technical Session)
• Session Net-01 Tuesday, June 4, 2002

Judith Hellerstein, President Hellerstein
Associates 2400 Virginia Avenue NW, Suite 1023C
Washington, DC 20037 Phone [phone] Fax
[phone] Judith_at_jhellerstein.com www.jheller
stein.com
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Introduction

• Broadband, What it is, Why is it Important
• Focus on DSL
• Fundamentals of DSL
• Government Actions/Initiatives to Spur Broadband
  Deployment
• Key Players FCC and Department of Commerce
• Key Regulatory Terms and Initiatives
• DSL Today Lessons Learned From Successful
  International Deployments

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What do We Mean by Broadband

• No established legal definition for what
  constitutes Broadband
• Broadband means different things to different
  people
• Lack of a clear definition, makes planning,
  vision and goal setting difficult
• FCC has one definition, the ITU uses another,
  Congress a third definition, the OECD uses a
  fourth, and industry uses another definition
• Need to have some clear idea or definition for
  the terms broadband access or broadband
  deployment.

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How Should Broadband be Defined?

• FCC Defines broadband as 200K or above in both
  directions
• The ITU, however, defines broadband as higher
  than 1.5-2 Mb
• Other suggested definitions include
• Defined by the type of services and applications
  offered, such as voice, video, data, music, and
  not by bandwidth
• Two definitions, one that describes current
  technologies and the other that describes
  next-generation technologies
• Intel and other companies suggest that broadband
  be defined as 4 MB and Next Generation be defined
  as 100 Mb or more
• No definition
• A different definition for consumers than for
  businesses

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Four Broadband Access Technologies

• DSL 386K-7 Mb
• Cable Modems 1Mb
• Fixed Broadband Wireless 10Mb/s - 10Gb/s
• Satellite 300K- 2Mb

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DSL Flavors

• Many Flavors of DSL
• Each flavor is dependent on
• The distance between the end user and the central
  office.
• The DSL equipment used
• DSL functionality is determined by the chipset
  that is included in the flavor offered.

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Standards Based DSL Variants

• Asymmetric and Symmetric
• ADSL and G.Lite
• HDSL2 and G. Shdsl
• VDSL, Standard in progress

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ADSL/ HDSL2

• ADSL
• Used for all consumer DSL applications and some
  business applications
• HDSL2
• An improved version of HDSL that requires only
  one copper pair
• Symmetric solution that is spectrally compatible
  with ADSL
• Superior reach, up to 24,000 feet

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SHDSL

• G.Shdsl
• Spectrally compatible with ADSL and other
  technologies
• Rate adaptive form of HDSL2
• Longer reach from 6,000-20,000 feet
• Works over worst-case loops and worst-case
  interferers
• Single pair (2 wire)
• Speeds from 324K to 2.3 Mbps
• Uses line probing to evaluate lines, analyze
  noise loop environment pick best data-rate
  and power back-off depending on situation
• Two region specific annexes North America and
  Europe

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VDSL

• VDSL
• Very High speed DSL that provides ultra-high
  bandwidth for video delivery
• Primary application is for video-on-demand,
  broadcast TV like functions
• Spectrally compatible with other DSL flavors
• Provides high bandwidth over short distances,
  less than 4,000 feet from the DSLAM
• Downstream is from 12.96-52 Mbps
• Upstream is from 1.6- 16 Mb
• Standardization being delayed because of the
  inability to chose between two different line
  codes
• The VDSL Alliance supports a variation of DMT
  (Discrete MultiTone), while the VDSL Coalition
  supports a combination of QAM (Quadrature
  Amplitude Modulation) and CAP (Carrierless
  Amplitude Phase)

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Interoperability/ Spectrum Management

• Interoperability is key, both among different DSL
  technologies and among equipment providers
• Interoperability is a critical first step in
  getting to certification
• Along with Interoperability, Spectrum
  Compatibility and Management is a crucial issue
  that needs to be addressed
• Development of spectrum compatibility standards
  is essential to reduce cross talk and other forms
  of spectrum interference

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Essential DSL Implementation Issues

• Self Installation
• Automated provisioning systems and processes
• Flow through of all orders for every provider
  whether CLEC, DLEC, ILEC, or ISP
• Provide customer and technical support personnel
  with all the tools needed to resolve problems

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Infrastructure Changes

• Broadband access is not only about plumbing, ie,
  providing the pipes to carry the traffic, it is
  about
• Applications that generate extra revenue for
  suppliers
• New content delivery models
• Formation of partnerships between website owners
  and content delivery providers
• Ability to dynamically create and display
  information on websites based on the type of
  connection (narrowband or broadband) or device
  accessing the information (PC, mobile phone,
  PDA, or other Internet appliance) without
  user/customer intervention
• Revamping of Web sites to design and format them
  for the high bandwidth user

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Key Regulatory Terms and Initiatives

• Line Sharing Order
• Provides Data LECs with the ability to use the
  high frequency part of the loop to provide data
  services to customers, while ILEC uses the lower
  frequency part to provide voice services.
• Eliminates the need to provision a second line
  for data services
• It is this Order which the DC Court of Appeals on
  May 24 struck down and remanded back tot he FCC
• UNE Order
• Added DSL-capable loops, dark fiber, subloops,
  DLCs, inside wire, and high-capacity loops to
  list of network elements required to be unbundled.

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Key Regulatory Terms and Initiatives

• Collocation Order
• How should the FCC treat DLCs and RTs
• Should the FCC mandate collocation in DLC/RT
• A Digital Loop Carrier (DLC) is a remote unit
  that connects a number of subscribers to a
  Central Office. A single connection runs from the
  Central Office to a DLC. Copper pairs then
  connects the DLC to the end user.
• A DLCs key advantage is that it reduces the
  length and number of direct connections from
  customer premises to the central office.

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Remote Terminals

• According to the FCCs collocation rules, ILECs
  must make physical collocation space available
  wherever this is technically feasible, even
  within an ILEC controlled Digital Loop Carrier,
  whether it be a Remote Terminal, Hut, or
  Controlled Environmental Vault
• If there is no collocation space, a CLEC must be
  allowed to construct a CEV or similar structure
  on adjacent land

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DLC Issues

• Another problem with Remote Terminals and DLCs
  is
• Data CLECs want to collocate in ILEC end offices
  and get clean copper loops that run
  continuously from the customer to the DSLAM in
  the Central Office
• However, most of the new DLC deployments do not
  haveclean copper loops, just fiber
• DSLAMs cannot connect to fiber

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New FCC Broadband Initiatives

• Triennial UNE Review
• Dominant/Non-Dominant
• Broadband Notice of Proposed Rulemaking (NPRM)
• Cable Modem Notice of Inquiry, Declaratory
  Ruling, and Notice of Proposed Rulemaking

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Triennial UNE Review

• Focuses on the availability of UNEs used for
  delivery of broadband and decides whether they
  meet the necessary and impair standard
• Reviews all UNEs and decides which ones are still
  critical to ensure broadband deployment
• Should the FCC unbundle high capacity loops and
  transport facilities
• Should the FCC modify its definition of the loop
• How should the FCC treat next-generation or fiber
  networks

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Dominant/Non-Dominant

• What is the correct definition of the broadband
  telecom service market
• Should an incumbent LEC that provides broadband
  service continue to be subject to dominant
  carrier regulation for that service

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Broadband Notice of Proposed Rulemaking

• Focuses on the legal classifications of Telecom
  and Internet services
• Answers questions such as, what is the legal and
  policy framework for broadband under Title I
  and Title II of the Communications Act
• Are access requirements appropriate in todays
  market
• How does Universal Service funding remain
  sufficient and predictable as services migrate to
  broadband platforms

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Problems with Broadband NPRM

• FCC has traditionally thought of common carrier
  telecommunications as being divided into two
  simple categories, basic services and enhanced
  services, and has regulated services based on the
  extent to which a particular service fell within
  these two categories.
• With this NPRM, the FCC now believes, at least
  tentatively, that the transmission component for
  broadband services and for Internet access,
  should be offered outside of the statutory
  framework that applies to telecommunications
  carriers.
• However, before attempting to change the current
  regulatory framework, the FCC first needs to
  better define what it means by broadband or
  broadband services

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NTIA Survey on Broadband Deployment

• In 2001, both NTIA and the Technology
  Administration held several forums on broadband
  deployment and on digital rights management
  issues
• In November 2001, NTIA issued a notice of inquiry
  asking for comments on a series of issues
  relating to broadband deployment
• Issues included
• Supply and demand for broadband services
• Any technical, economic, or regulatory barriers
• A better definition for broadband and broadband
  services

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NTIAs Guideposts for Facilitating Broadband
Deployment

• Market, not government, should drive broadbands
  rollout.
• Governments role is to remove regulatory
  roadblocks that impede efficient capital
  investment
• Rational facilities investment should be the
  ultimate goal of policies the government pursues
• Promote competition through a technology-neutral
  paradigm
• Recognize that the market might not always work
  well or at the same pace in all areas
• After a new regulatory framework has been
  established make sure it is backed up with
  enforcement measures with real teeth

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How did the Industry Respond to NTIAs Inquiry?

• The majority of all the commenters called for
  some kind of subsidy to incent companies to
  deploy broadband in all areas of the country,
  specifically in rural areas
• Most popular type of subsidy mentioned requested
  were
• Tax breaks
• Tax credits
• Low interest loans
• Loan guarantees
• Accelerating depreciation schedules

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Technology Administrations Broadband Goals

• Educate companies on the value of broadband by
  identifying and commending innovative uses of
  broadband applications
• Enforce laws to protect intellectual property
  rights and help better educate consumers around
  the world about these laws
• Accelerate the depreciation schedules for
  business investment in broadband infrastructure
  equipment
• Urge Congress to make the RD tax credit
  permanent to incent further broadband-enabling
  technologies

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Technology Administrations Goals

• Support market development by using broadband
  technologies in government led initiatives, such
  as procurement and e-government initiatives
• Local governments can partner with local users to
  aggregate demand and make the market case for
  deployment more compelling to carriers
• Work with State and Local Governments to identify
  and adopt best practices with respect to rights
  of way, tower siting, zoning, taxation, building
  codes, and other issues
• Identify and support international telecom
  policies that promote broadband growth

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Success of DSL Internationally

• Japan 1.52 million
• Taiwan 1.1 million
• Korea 5.03 million
• Canada 1.02 million
• Germany 1.8 million
• France 430 million
• Italy 390,000
• UK 127,000

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US DSL Penetration

• Low penetration rates in the US are not caused by
  regulatory issues or constraints
• In Japan, where competition is intense, prices
  are lower, services are higher, and subscribers
  are plentiful. Yahoo Japan offers a promotion
  rate of 19 a month
• Japan, Canada, Korea, and a host of other
  countries charge less than 22 for DSL and prices
  will likely drop for low speed DSL as competition
  with cable companies heats up.
• Instead,low penetration rates are the result of
  several other factors
• High prices
• A lack of understanding of why consumers need
  high-speed access as well as other demand side
  challenges at the prices charged
• Lack of any direct competitors to the incumbents
• Lack of local broadband content

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Broadband Penetration per 100 Inhabitants (OECD
data)
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Conclusion

• Reviewed the Fundamentals Behind DSL
• The critical need for interoperability and
  spectrum management
• DSL Implementation Issues
• Key infrastructure changes resulting from
  broadband deployments
• Government Actions to Spur Broadband Deployment
• Regulatory actions tend to affect the type of
  broadband access service used, the speed of
  deployment, the price charged, and geographic
  coverage
• DSL Today Lessons Learned From Successful
  International Deployments
• Broadband and Internet access will continue to
  increase
• The demand is real, it is just a question of
  cost, time and the lack of any killer application

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• Questions, Comments, Suggestions?
• Judith Hellerstein, President
• Hellerstein Associates
• 2400 Virginia Avenue NW Washington, DC 20037
• Phone [phone] Fax [phone]
• Judith_at_jhellerstein.com www.jhellerstein.com
• Thank You