The National Broadband Network and FibretothePremises FttP

1
The National Broadband Network and
Fibre-to-the-Premises (FttP)
David Ives Avtec Consulting Connected Home
EXPO October 2009 Sydney, NSW
2
Introduction

• Contents
• National Broadband Network NBN
• Why we need it
• Why it should be optical fibre
• Impacts on our industry
• Please turn off mobile phones

David Ives 0409 892 133
david_at_avtec.com.au
3
The National Broadband Network

• What is the National Broadband Network
• Fibre to 90 of households and businesses in
  Australia
• All towns over 1,000 in population some
  smaller
• Rest will be covered by other technologies
  (WiMax/Satellite...)
• Backhaul building projects to remove blackspots
• The latest in a long series of government
  initiatives
• Department of Broadband, Communication and the
  Digital Economy (DBCDE formerly DCITA)
• Broadband Connect, Connect Australia, Clever
  Networks
• OPEL WiMax network (DCITA)
• Fibre-to-the-Node tenders called then cancelled
• Now the NBN Fibre-to-the-Premises
• Digital Regions 60M to fund Innovative
  Applications

David Ives 0409 892 133
david_at_avtec.com.au
4
Government NBN Initiatives

• Satellite subsidies - additional 11.4M
• Indigenous Communications Program - 33.7M
• Rural National Broadband Coordinators - 5M
• Regional Broadband Hubs (50)
• 15.3M
• Coordinated and operated by the ABC
• Virtual Town Squares

David Ives 0409 892 133
david_at_avtec.com.au
5
The NBN Controversy

• What is the current controversy about?
• Is it worth 43 Billion?
• How accurate is the costing?
• What happens to Telstra?
• What is the future of the copper network?
• What does it mean to us as an industry?
• Is it going to be too fast (100Mbps to 80)?
• Do we really need a national fibre broadband
  network?

David Ives 0409 892 133
david_at_avtec.com.au
6
Competition Issues

• Service Competition vs Infrastructure Competition
• The economists dont agree on this...
• Is competition important? (e.g. roads, water
  supply etc)
• Does it need to be commercially viable?
• Is it important enough for the Australian
  Government to partially fund it as a Nation
  Building initiative?
• What role does Telstra have to play?
• Service Competition is critical - Infrastructure
  Competition is a bonus
• Network architecture must allow for service
  competition
• e.g. all IP
• Access points must be viable for competing
  Service Providers (i.e. cant be every exchange)

David Ives 0409 892 133
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7
The Future of Telstra

• Vending-in of Assets
• NBN needs Telstras transmission assets
• NBN needs Telstras duct space in the Customer
  Access Network
• Telstra needs access to the NBN network
• NBN not viable without current Telstra broadband
  business
• Government Structural Change Requirements
• Vertical Integration (Wholesale Retail)
• Horizontal Integration (Fixed, Mobile, Broadband,
  Pay Television)
• Structural separation of wholesale and retail
• Competition and pricing

David Ives 0409 892 133
david_at_avtec.com.au
8
The Economic Justification

• There is no economic justification for the NBN!
• The retail price needs to be around 150 - 200
  pm to be viable...
• But what about
• Freeways (excluding toll roads)
• Railways (excluding coal lines)

David Ives 0409 892 133
david_at_avtec.com.au
9
How is the NBN going to be used?

• We need to look to the future to find the new
  applications that ultimately will drive NBN
• The driver applications often arent obvious or
  even in existence as the technology is developing
• SMS/texting

David Ives 0409 892 133
david_at_avtec.com.au
10
Predictions

• I think there is a world market for maybe five
  computers.
• IBM Chairman Thomas Watson, 1943
• There is no reason for any individual to have a
  computer in their home.
• Ken Olson (President of Digital Equipment
  Corporation) at the Convention of the World
  Future Society in Boston in 1977
• 640K ought to be enough for anybody.
• Microsoft Chairman Bill Gates, 1981
• Get your feet off my desk, get out of here, you
  stink, and we're not going to buy your product.
• Joe Keenan, President of Atari, in 1976
  responding to Steve Jobs' offer to sell him
  rights to the new personal computer he and Steve
  Wozniak developed

David Ives 0409 892 133
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11
So what are the obvious reasons?

• Efficiency
• Reducing the www (world wide wait)
• Close Coupling
• We dont necessarily need 100Mbps continuously
  in many cases high speeds like this are required
  to deliver good response times (i.e. low latency)
• E.g. flicking through the pages of a book high
  data rate low latency - but low data volume
• Applications such as
• Video
• High Definition
• Multiple sessions
• 3D video

David Ives 0409 892 133
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12
More reasons why we need it

• Cloud Computing
• Software-as-a-Service (SaaS)
• Computing-as-a-Service (CaaS)
• Platform-as-a-Service (Paas)
• More efficient utilisation of computing power
  (Netbooks)
• Data centre efficiency e.g. Virtual Machines
• Google Application Engine
• Amazon Elastic Computing Cloud
• IBM Blue Cloud
• Computing power as a commodity (like electrical
  power)
• Some corporates now changing from MS Exchange to
  Google Mail

David Ives 0409 892 133
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13
Even more reasons

• Moores Law of Computing Power (doubling every
  18 months)
• Website design and software following
  rest-of-world bandwidth, memory and processing
  power increases
• Bandwidth must keep up!
• Multiple addressable devices using IPv6
• IPv4 32 bit Addresses (gone by 2011)
• IPv6 128 bit (2E128) Addresses
• every electronic device will have an address
• Simplifies Quality of Service Issues
• The Networking benefit of universal connection
• Will drive development of new applications

David Ives 0409 892 133
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14
And if that wasnt enough

• Symmetrical Services
• Video conferencing impact
• Wouldnt it be nice if we could have one fibre
  with all services (Triple Play) instead of
• Telephone cables
• Broadband modem and filters
• Pay television co-ax /satellite
• Why convert from fibre to copper?
• Appliances in the future could include
• an optical interface
• justification would be cost rather than bandwidth
  (i.e. cheaper to do high bandwidth optical than
  low bandwidth copper)
• e.g. LED/OLED technology in lights and televisions

David Ives 0409 892 133
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15
The International Picture
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16
Arguments against NBN

• Wireless could achieve the same result
• wireless capacity is limited - even with small
  cells and beam shaping
• Why Optical Fibre?
• High Speed DSL could achieve the same result
• limited by distance
• not symmetrical
• copper development cycle vs fibre development
  cycle

David Ives 0409 892 133
david_at_avtec.com.au
17
Fibre Development Cycle

• Around 20 years development so far
• Speeds up to 10Gbps
• Multiple wavelengths (carriers) x 64
• Distances increasing 20km gt 80km
• Monash Uni developing Orthogonal FDM (OFDM)
  (10Gbps to 100Gbps) on each wavelength
• Many years of development to come

David Ives 0409 892 133
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18
Implications for the Industry

• Cabling impacts
• What is the point of a high speed fibre
  connection externally if there is no suitable
  internal cabling
• Currently very little activity to improve
  internal cabling
• Fibre to everywhere
• Why not just use fibre internally as well
• IP everywhere
• Fibre-connected IP devices
• Distributed vs Centralised processing

David Ives 0409 892 133
david_at_avtec.com.au
19
Ownership and Access Models

• Ownership Models
• Council owned (seems to be favoured by
  Government)
• Body Corporate owned
• Carrier or Service Provider owned
• Access
• Open Access
• Wholesale access to other retail service
  providers
• Competition
• Infrastructure
• Service Level (Resale)

David Ives 0409 892 133
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20
Current Status of NBN Process

• Greenfield Estates
• Comments received on NBN FttP in Greenfield
  Estates Consultation paper
• Estimated 7500 Houses connected at end of 2008
• Appointments
• McKinsey/KPMG appointed as Lead Advisors
• Doug Campbell - Board
• Mike Quigley - CEO - NBN Co
• Backhaul projects have commenced in Tasmania
• By 2014 Tasmania will have 80 penetration of
  fibre access (compared to 40 max now in Japan
  Korea)
• Planned for
• Emerald Longreach
• Geraldton, Darwin, Broken Hill
• Victor Harbor, Gippsland

David Ives 0409 892 133
david_at_avtec.com.au
21
NBN Working Groups

• NECA CTAG group
• Comprehensive Industry-aligned strategy from
  CEDIA, BICSI and NECA
• working collaboratively to represent the industry
  to the Government to assist with the rollout of
  the NBN
• NBN Working Groups
• A number of workgroups are underway, in many
  private and Government agencies covering every
  area of the NBN including
• Changes to Legislation
• Defining an NBN reference model
• Wholesale arrangements
• Early stage adoption and End user migration
• Operations, Processes and Technical
• The NBN Reference Model will define
• Rights and Responsibilities of the customer
• Service Providers - wholesale and retail
• Points of Interconnect

David Ives 0409 892 133
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22
Service types

• There will need to be clear definition of who the
  Customer interfaces with. The concept is
• Each premises network must enable multiple
  services to be active in parallel and operate
  simultaneously, each connected through an access
  network to different wholesale and retail service
  providers
• The wholesale services models being considered
  include OS models   
• 2 Categories passive dark fibre, active L2
  Ethernet (this is the priority)
• There will be a focus on wholesale services that
  are lower in the stack to encourage innovation
  (i.e. closer to infrastructure competition)
• Active services L2 Ethernet
• various Qos, IPTV/VOD
• PPP/L2TP services consideration to voice
  services
• Backhaul compatibility to wholesale DSL services

David Ives 0409 892 133
david_at_avtec.com.au
23
Objectives

• 2 Types of Service Provider
• NSP network SP based on IP addresses
• ASP Application SP connects to IP and
  delivers service/content
• Three Key NBN Objectives
• To get coverage
• Restructure the industry
• In the most cost effective way
• Other NBN Objectives
• Provide wholesale services
• Open access and equivalence
• Facilitate any to any connection
• Promote max end user choice for services provided
• Deliver security and QoS

David Ives 0409 892 133
david_at_avtec.com.au
24
Fibre-to-the-Premises (FttP)

• FttP FttH ? FttN (FttX is the generic term)
• New developments using Wave Division (basically
  different colours of light) have continued to
  increase the capacity of optical fibre to the
  point that there is no practical limit in sight
• Optical fibre possible because of
• The high and rising cost of copper
• The reducing cost of optical technology
• The invention of passive splitting technology

David Ives 0409 892 133
david_at_avtec.com.au
25
FttP Advantages

• Triple Play
• The high capacity of FTTP allows carriers to
  deliver on one pair of fibres, a Triple Play
  service
• voice telephony (with multiple lines)
• fast broadband
• television (pay and free-to-air)
• Largely independent of distance - performance
  does not degrade significantly as you move away
  from the exchange or node
• Immune to EMI/RFI interference
• No crosstalk
• Provides electrical isolation
• Does not suffer from power surges during
  lightning strikes unlike copper telephone services

David Ives 0409 892 133
david_at_avtec.com.au
26
FttP Architecture

• There are two basic architectures used in FTTP
  networks
• Point-to-Point (Centralised or Home Run)
• Multipoint (or Point-to-Multipoint) PON
  (Passive Optical Networking)
• Centralised architecture
• More expensive because every premises has a
  direct fibre pair high fibre count
• Performance may be slightly better
• Some advantages in the way competition can be
  facilitated
• Multipoint architecture
• Branch structure to connect one fibre pair to
  multiple premises up to 64
• Performance is reduced very slightly because of
  the sharing of the fibre
• Splitting can be achieved using active (powered)
  splitters or passive (unpowered) splitters
• Passive Optical Networks (PONs) do not need
  airconditioning and power and are more reliable
• Distances up to 19km

David Ives 0409 892 133
david_at_avtec.com.au
27
Introduction to PON Standards

• Passive Optical Networking
• EPON Ethernet PON an early campus style
  solution based on Ethernet carriage
• BPON Broadband PON this was an early carrier
  standard based on ATM carriage
• GPON an update to BPON providing Gigabit
  capacity on ATM
• GEPON an update to EPON providing Gigabit
  Ethernet
• WDMPON Wave Division Multiplexing uses
  different wavelengths (colours) to increase
  capacity and split to different customers (like a
  prism)

David Ives 0409 892 133
david_at_avtec.com.au
28
Splitter Design Issues

• Large fibre has to be fanned-out to each
  property - several fibres at a time
• Can use distributed splitting
• Or centralised splitting

Source Finley Engineering
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david_at_avtec.com.au
29

• Thanks for your attention.
• If you would like to ask any questions or provide
  any input into the process please talk to me
  after the presentations
• David Ives
• Avtec Consulting
• 0409 892 133
• david_at_avtec.com.au

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30
Optical Fibre
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Fibre-to-the-Premises (FttP)
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32
Optical Fibre How does it work?
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FibreTransmission

• Attenuation occurs due to
• Rayleigh scattering (silica molecules)
• OH (Water Peak)
• Bending
• Operating windows in Zero Water Peak Fibre
• 850 nm
• 1310 nm
• 1550 nm
• Chromatic Dispersion
• Frequency jitter/spread

David Ives 0409 892 133
david_at_avtec.com.au
34
What do we mean by speed?

• Electrical signals travel in a wire at about
  70-80 of the speed of light
• Light in an optical fibre travels at close to the
  speed of light (not exactly the speed of light)
• So the speed is fixed
• What we really mean is Bandwidth or rate of
  transmission i.e. how fast can we transmit data
  bits onto the line bit-rate
• The Nyquist rate determines maximum rate
  depending on the bandwidth of the medium

Close to the speed of light
Close to the speed of light
David Ives 0409 892 133
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35
FttP in New Estates

• There is market research available from overseas
  which demonstrates that FTTP adds significant
  value to a development.
• Research from the USA indicates that the use of
  FTTP contributes significantly to the price
  buyers are prepared to pay. Optical Fibre adds
  between
• US4,000 to US7,000 to property value -
  Source Render Vanderslice and Associates
  (December 2004)
• A9,000 to A13,000 to property value- Source
  Max Kipfer President, Fiber Optic Communities
  of the US (March 25, 2005)
• Evidence from Australia is consistent with the US
  research

David Ives 0409 892 133
david_at_avtec.com.au
36
Whats in it for Developers

• Ability to sell estates as being fibre connected
  (FttP), with a premium price
• Ability to market the estate as future-ready
  (most use the term future-proof which is
  dangerous)
• Provision of telecom infrastructure (owned by
  developer, community or service provider)
• Potential to profit share and generate a trailing
  revenue stream after development is completed
• Ability to be a service provider if desired

David Ives 0409 892 133
david_at_avtec.com.au
37
Video Television Architecture

• Content Delivery
• Free-to-Air
• Pay Television
• Local content
• Delivery Mechanism
• RF Overlay - simple
• IP Television not always viable at this stage
• Huawei developing universal IP Set-top Box (STB)
  for Singapore
• ABC working on iView Direct-to-TV
• Provides better competition options

David Ives 0409 892 133
david_at_avtec.com.au
38
PON Operation

• Downstream signal from Optical Line Termination
  (OLT) to Optical Network Termination (ONT)
• Broadcast to all downstream using TDM
• Addressed to one ONT
• Single Wavelength
• Under control of OLT
• Downstream signal contains upstream transmission
  window information
• Upstream transmission from ONT to OLT
• Controlled by OLT by transmission window
• Takes account of optical distance to ensure
  accurate synchronisation
• Preamble burst synchronises signal from ONT
• Upstream traffic queues within ONT Dynamic
  Bandwidth Allocation allows QoS management (by
  monitoring fill ratio of upstream packets)

David Ives 0409 892 133
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39
Bandwidth Allocation
1310 nm
1490nm
Splitter
Upstream Band Downstream Band
1310 nm 1490 nm
Wavelength G.983.3 Wavelength Plan
39
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40
Design Considerations

• Link Power Budget usually up to 25dB
• 1.5 to 2dB loss for connectors
• Plus future repair splice allowances
• Allowing for Chromatic Dispersion, Differential
  Mode Delay
• Splitter design and layout
• Spare fibres to cater for growth and damage
• Minimise splicing costs
• Maximise flexibility for growth
• Fit within the available conduits and ducts

David Ives 0409 892 133
david_at_avtec.com.au
41
David Ives 0409 892 133
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42
How ROW compares
7,500
Source FTTH Council
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43
Wireless
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44
Wireless

• 802.11a/b/g(n)
• WiFi local area solution
• Short distances
• Up to 80Gbps
• 802.16
• WiMax wide area solution
• Long range solution (20km 80km)
• Non-carrier solution (sometimes called 4G)
• LoS Non-LoS
• Alverion Breezemax, Motorola Canopy
• Fixed and Mobile variants
• Was to be used by Optus/Elders for NBN1

David Ives 0409 892 133
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45
ADSL is just not good enough

• Copper development cycle
• 150 years of development of metallic conductors
• Tricks multiple carrier, digital, distance
  reduction
• Interference - crosstalk mid-point injection
• Asymmetrical
• Ageing infrastructure
• Complex protocol
• TCP/IP/PPP/ADSL/ATM/Copper

High
Medium
High
High
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46
Mobile Telephony
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47
Mobile

• Last generation 2G
• GSM voice
• GPRS data
• Current generation 3G
• UMTS
• HSPA/HSDPA for data
• Up to 21 Mbps
• Carrier solution (WiMax competitor)
• LTE (IP core)
• IP core
• Is it better than fibre?

David Ives 0409 892 133
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48
Ouch!
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49
The FttP Business Case
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50
Cost Breakdown for FttP

• 44 - Outside Plan (OSP) fibre, trenching, labour
• 36 - Network equipment
• 18 - Engineering and Project Management
• 1.4 - Head-end cost
• 0.5 - Exchange cost
• Source Corning

David Ives 0409 892 133
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51
Critical Success Factors for FttP

• Standards-based design and construction
• Choice of service provider and contractors
• Appropriate ownership model
• Choice of service provider for end-users
• Take-over rights
• Over-design capacity
• Activation and Billing

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52
Carrier IP Convergence
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Transmission Rate and Distance

• Limitations are largely due to attenuation of the
  signal due to
• Capacitance (electrical)
• Trade-off between crosstalk - and capacitance
  (spacing) inductance (twist)
• Light loss (fibre)
• Bandwidth is inversely related to transmission
  distance
• Transmission from HF electrical to light
• Current gt skin effect gt external field gt
  waveguide gt fibre
• Analogue vs Digital
• All transmission media are analogue!

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54
Optical Fibre Equipment
Fibre Plant Distribution and Lead-In network
equipment Source Madison
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Jointing Machine
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Property Entry
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Optical Fibre Joint
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Battery and Power Supply
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Greenfields vs Brownfields

• New regulations for Greenfields
• Brownfields retrofit
• Overhead is relatively simple (except for 2 x pay
  television networks)
• Underground is more difficult
• Lead-ins problems
• Direct-buried cable (no conduit)
• Sharp bends
• 1 inch conduits with RG11 pay television cables

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60
Internal Cabling

• Location of ONT
• Batteries
• Location
• System UPS may be suitable if allowed by service
  provider
• ONT Outputs
• IP data RJ45
• Voice n x RJ45 or VoIP
• RF Overlay F Connector
• Proximity to Power Board
• Conduit routing segregation
• Earthing

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61
Architects and Builders

• Design Considerations
• Lead-in pathway should be allocated during design
• Location of ONU
• Proximity of ONU to power and equipment room or
  wiring hub
• Segregation from power cabling

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Implications for CEDIA Members

• Availability of higher bandwidths
• End of satellite and FTA?
• Move towards IP video delivery will accelerate
• Cloud Control
• Smart Grid power management
• Environmental management
• Move from house control to City Control?
• Does this mean a loss of control?

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63
Inside the Cloud
ADSL
256k 6Mbps 64k 640kbps
Service Provider Connection
ServiceProvider
ADSL Provider Network
Modem
DSLAM
Provided by SP Or customer
Provided by major carriers
Internet Service Provider
or Application Service Provider
or Corporate Service Provider
Copper telephone pair - provided by Telstra In
most cases
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Voice Networks
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Data Networks
Modem
Modem
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Transmission

• Multiplexing allows multiple channels on one link
• Time Division Multiplexing (TDM) allows multiple
  digital channels of 64kbps
• Wave Division Multiplexing for fibre
• Transmission is moving towards a native IP Core
  (IP Transformation)
• Currently using IP on ATM core

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67
Last Mile Technologies

• Customer Access Network (CAN)
• Copper pair cable (one pair per customer)
• Main cables hundreds of pairs exchange to
  pillar
• Distribution cables pillar to lead-in pit
• Lead-in cables 2 or 3 pairs from pit
• Digital Subscriber Line (DSL)
• ADSL
• VDSL
• SDSL

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Centralised Architecture

• Centralised/Point-to-Point/Home Run
• Cable from Concentrator to each premises (like
  Copper)
• High fibre count high termination cost
• High bandwidth
• More capacity for growth in bandwidth
• Simplicity
• Flexibility

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69
Multipoint (PON) Architecture

• PON (Passive Optical Networking) used to split
  signal
• No electronics high reliability
• Lower fibre count at concentrator
• Highly flexible but more complex
• Split ratios of up to 164
• Distance up to 19km

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70
PON Standards in Detail

• APON
• ATM (Asynchronous Transfer Mode) based on 53
  Octet carrier standard - 155 Mbps
• BPON
• Broadband PON - enhancement of APON - 622 Mbps
  and later 1.2 Gbps downstream. BPON is covered by
  the ITU 984.1-3 standard
• GPON
• GPON is Gigabit per second PON, based on ATM -
  compatible with BPON - offers the following
  speeds
• 1.244 Gbps or 2.488 Gbps downstream
• 155 Mbps or 1.244 Gbps or 2.488 Gbps upstream
• GPON is based on ITU 984.1-3 (as is BPON)
• EPON/GE-PON
• GE-PON is the Ethernet version of Gigabit per
  second PON and is similar in concept to GPON
  although it is not normally used by large
  carriers who prefer ATM based protocols
• GE-PON is based on the IEEE standard 802.3ah and
  offers 1 Gbps symmetrical upstream and downstream
• WDM PON
• Wave Division Multiplexing PON is a new
  technology which uses light of different
  frequencies (colours) to provide dedicated
  services to each customer using a variety of
  different schemes. WDM is not expected to be
  established as a standard for some time

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71
WDM PON

• Downstream
• OLT transmits on a different band for each ONT
• Complete separation
• Expensive but very secure
• Wavelength router instead of power splitter
  (think of a prism)

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72
FttP Customer Access Network

• Pit and Pipe Network
• Who owns it?
• Pits enclosures
• Fibre-loops for jointing
• Minimum Bending Radius
• Jointing Splicing
• Ring-barking
• Connectorisation (50 reduction in labour costs)
• Water-proofing of joints

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High-rise Issues

• Current situation
• Telstra has no obligation or monopoly
• Open to competition
• Service terminates at building MDF or NTU
• Single ONU with copper feed to units or use of
  third party cabling
• NBN service providers
• A range of models is possible
• Fibre to each unit
• DSL distribution
• Access to ONU for maintenance may be an issue

David Ives 0409 892 133
david_at_avtec.com.au
74
The Impact of Asymmetry
ADSL
1.5 Mbps 256 kbps
ADSL Provider Network
Modem
Modem
DSLAM
DSLAM
The speed is determined by the slowest link the
result is a very slow end-to-end service
unsuitable for applications such as video
conferencing.
256 kbps
256 kbps
14
David Ives 0409 892 133
david_at_avtec.com.au