Broadband (I): Introduction,
Services, Applications, and Markets
C.Courcoubetis
G.D.Stamoulis
Spring 2012
C. Courcoubetis, G.D. Stamoulis Broadband 1: Introduction - 2
Outline of Material
Introduction: • Access network and service
• Access technologies
• The concept of Broadband
Broadband Services and Applications
Broadband Markets
DSL
Wireless Access and Spectrum issues
Fiber
Other Access Media
Concluding Remarks
C. Courcoubetis, G.D. Stamoulis Broadband 1: Introduction - 3
Introduction
C. Courcoubetis, G.D. Stamoulis Broadband 1: Introduction - 4
Access network - Access service
Access network: local loop infrastructure
• It is the ‘last mile’ of the network
• Connects the user with the first network POP
• Can use different technologies
• Usually is the bandwidth bottleneck
Access service: more complex concept
• connects to higher level services (Internet, VoD, etc.)
• may be layered (physical layer, data link layer)
• bundled with information service
C. Courcoubetis, G.D. Stamoulis Broadband 1: Introduction - 5
Access media
Wide Variety:
Twisted pair (copper): • Digital Subscriber Line (DSL)
Wireless • WiFi, WiMax, …
CATV Coaxial cable
Optical fiber
Power cable
Can serve a wide variety of applications
C. Courcoubetis, G.D. Stamoulis Broadband 1: Introduction - 6
Basic access technologies
twisted pair (copper)
VBD
ISDN HDSL ADSL
SDSL
VDSL
wireless transmission
Satellite
Cellular(GSM 4G)
WiFi (802.11)
MMDS, LMDS
100% optical fiber SDH PON
Coax & fiber
HFC
SDV Free space optics
Other: Powerline, Gas pipe
MetroEthernet
MetroEthernet
WiMax (802.16)
Home PNA
C. Courcoubetis, G.D. Stamoulis Broadband 1: Introduction - 7
Rates vs Access Loop Length
Central Office
DSLAM
Increasing loop length CPE
C. Courcoubetis, G.D. Stamoulis Broadband 1: Introduction - 8
Access network architecture:
the case of DSL
access network
... ...
Service provider networks
Gateways (routers)
interconnection networks
DSLAM
End users
BRAS
- BRAS: Broadband Remote Access Server - DSLAM: Digital Serial Line Access Multiplexer
twisted pairs
C. Courcoubetis, G.D. Stamoulis Broadband 1: Introduction - 9
Business model for access services
... ... A B
Provider 1 Provider 2
S1 S2
Ν1
Ν2
• A is a customer of Provider 1 using access service S1
Customer A: buys (P1, S1)
Provider P1: builds S1 by buying services from N1, N2
• B is a customer of Provider 2 using access service S2
Customer B: buys (P2, S2)
Provider P2: builds S2 again by buying services from N1, N2
• Simple case of value chain
C. Courcoubetis, G.D. Stamoulis Broadband 1: Introduction - 10
Broadband Services
and Applications
C. Courcoubetis, G.D. Stamoulis Broadband 1: Introduction - 11
Service requirements
to the access network
Service Type DownstreamBandwidth
UpstreamBandwidth
Telephony Switched 4kHz 4kHzISDN Switched 144kbps 144kbpsBroadcast video Broadcast Analog or 6 Mbps 0Interactive video Switched 6 Mbps SmallInternet access Switched 1-… Mbps Small initallyVideoconferencing Switched 6 Mbps 6 MbpsBusiness services Switched 1.5-622 Mbps 1.5-622 Mbps
C. Courcoubetis, G.D. Stamoulis Broadband 1: Introduction - 12
Local networks based on outdated principles became a bottleneck, limiting subscriber’s access to modern services.
Key forces: Data communications exceed telephony
• Need for High-Speed Internet
New business applications New subscriber’s requirements to service provision
Development of high-speed core networks with a
capacity of dozens and hundreds of Gbps
Access networks go broadband (I)
C. Courcoubetis, G.D. Stamoulis Broadband 1: Introduction - 13
Key forces towards broadband (continued):
Development of new services in voice, data and video information • Millions of WWW pages with powerful video information • New Multimedia applications, in modes:
Broadcasting, On-demand, Interactive
New regulatory framework enabling competition • Lower entry barriers; huge investments in infrastructure
not required anymore
Access networks go broadband (II)
C. Courcoubetis, G.D. Stamoulis Broadband 1: Introduction - 14
Key forces towards broadband (continued):
Emergence of alternative operators in local networks, who compete with incumbent operators in provisioning a wide set of additional services
Wireless technologies have progressed and are being widely adopted
• Wireless/mobile subscribers exceed landline subscribers
Access networks go broadband (III)
C. Courcoubetis, G.D. Stamoulis Broadband 1: Introduction - 15
What is a broadband access service ?
Always on • Easier and more convenient to use, instant
gratification
• Heavier use
High speed, simultaneous provision of downstream and upstream • Bit-rate exceeds (often by far) ISDN 144kbps
Low latency: Necessary for interactivity
C. Courcoubetis, G.D. Stamoulis Broadband 1: Introduction - 16
Cable WLAN
30
UMTS ADSL
Fiber
GSM
PSTN
GPRS ISDN
bit/s
Byte
1
0,01
30 3
2,5
0,4
0,2
1 30
sec
min
min
20
9,6 k
56 k
115 k 128 k
2 M 8 M
30 M 80 M
800 G
1 h video MPEG 4 in TV-Quality
MP3 or high
resolution photo Wireless wired
sec
sec
sec
sec
ms
ns
7
3,5
12
sec
µsec
min
sec
ms
Liv
e V
ideo
Co
dec
s s
tart
ing
wit
h 3
2 k
bit
/s
days
hours
3
12
hours 6
min 42
3 k 3 M 300 M
Comparison of download duration
Bro
adband
C. Courcoubetis, G.D. Stamoulis Broadband 1: Introduction - 17
Main areas of broadband applications
High-speed Internet, both for residential and business customers
Enterprise applications:
• VPNs
• Storage Area Networks, Data Centers, Server Farms
• Grid, Cloud Computing
Tele-working and remote collaboration
E-Government
E-Health
C. Courcoubetis, G.D. Stamoulis Broadband 1: Introduction - 18
Main areas of broadband applications
E-Learning
Peer-to-peer file-sharing
E-Home with infotainment and telematics • IP-TV, Video-on-Demand
Online Gaming
Security applications: e.g. surveillance
Special applications for avoiding exclusion of people in rural areas, or with special needs
C. Courcoubetis, G.D. Stamoulis Broadband 1: Introduction - 19
Applications & Rates
vs. Broadband Access Technologies
Sourc
e:
© P
lannin
g
C. Courcoubetis, G.D. Stamoulis Broadband 1: Introduction - 20
OECD Average Advertized
Broadband Speed per Technology: Sept. 2008
5 012
712
699
1 264
34 247
17 412
1 889
9 623
14 856
65 326
Total
Wireles s
DS L
C able
F TTx
Dow n
Up
Source: © OECD
C. Courcoubetis, G.D. Stamoulis Broadband 1: Introduction - 21
Triple/Quad play
Everybody has fixed telephony, TV, internet access for data
Basic triple play is: • Voice, video, data in a single bundle, with a single bill
Advanced triple play involves: • Equipment integration for customer and provider
• Support of many devices (e.g. TV in PDAs)
• User-friendly interfaces
• Customization capabilities
• Advanced service features
• Advanced service software platform
Quad play Triple play + mobile telephony
C. Courcoubetis, G.D. Stamoulis Broadband 1: Introduction - 22
IPTV client
Easy User interface
Personalization; e.g. Language selection, font size
Parental Control
Extendable Catalog System • Video on Demand
• radio/TV/music/games
• Simple navigation
• Quality & admittances rating
Browse Based Activities • TV-friendly web browsing
• Bookmarks catalog
• Gaming
• …
Messaging
Source: © NetUP
C. Courcoubetis, G.D. Stamoulis Broadband 1: Introduction - 23
Electronic program guide
Sourc
e:
© Inte
ract-
TV
C. Courcoubetis, G.D. Stamoulis Broadband 1: Introduction - 24
Integrated triple play telephony
Caller ID on TV
Call history voice and video
TV-based voice mail retrieval
Message waiting indication on TV
TV-based video calling and conferencing
…
Sourc
e:
© N
etC
entr
ex
C. Courcoubetis, G.D. Stamoulis Broadband 1: Introduction - 25
The overall picture: The digital home
Sourc
e:
© N
oG
eekLeftB
ehin
d
C. Courcoubetis, G.D. Stamoulis Broadband 1: Introduction - 26
A more “exotic” application:
home monitoring
Sourc
e:
© H
om
e a
larm
monitoring s
erv
ices
C. Courcoubetis, G.D. Stamoulis Broadband 1: Introduction - 27
Value Chains for Broadband Applications
Several players are involved in the provision of a broadband application
1. Value-adding players, delivering the content and transforming it to bits
2. ISP, network infrastructure provider etc, delivering the bits
Variety of interactions and business relations
C. Courcoubetis, G.D. Stamoulis Broadband 1: Introduction - 28
The Value chain for Video on Demand
Source: © NetCentrex
C. Courcoubetis, G.D. Stamoulis Broadband 1: Introduction - 29
Broadband Markets
C. Courcoubetis, G.D. Stamoulis Broadband 1: Introduction - 30
Introduction
Broadband applications are here
Access technologies are continuously evolving: • Applications become faster and more demanding
But how about demand? • For broadband access
• For applications
What is the impact of prices?
C. Courcoubetis, G.D. Stamoulis Broadband 1: Introduction - 31
The top countries worldwide: June 2003
C. Courcoubetis, G.D. Stamoulis Broadband 1: Introduction - 32
The top countries worldwide: June. 2011
C. Courcoubetis, G.D. Stamoulis Broadband 1: Introduction - 33
Top countries worldwide by household:2010
C. Courcoubetis, G.D. Stamoulis Broadband 1: Introduction - 34
Different speeds per country: Sept. 2008
Source: © OECD
10 000
20 000
30 000
40 000
50 000
60 000
70 000
80 000
90 000
100 000
Japa
n
Kor
ea
Fra
nce
Finland
Nethe
rlan
ds
Germ
any
Aus
tralia
Den
mark
Por
tuga
l
Icelan
d
New
Zea
land
**
Nor
way
Swed
en Italy
United Kingd
om
Cze
ch R
epublic
Aus
tria
Luxe
mbo
urg
United State
s
Spa
in
Switz
erland
Belgium
Greece
Slova
k Rep
ublic
Can
ada
Irelan
d
Hun
gary
Polan
d
Tur
key
Mex
ico
Average advertised broadband download speed, by country, kbit/s, September 2008
Source: © OECD
C. Courcoubetis, G.D. Stamoulis Broadband 1: Introduction - 35
Different speeds per country: Sept. 2011
C. Courcoubetis, G.D. Stamoulis Broadband 1: Introduction - 36
Average price per country per
advertized Mbps: Sept. 2011
C. Courcoubetis, G.D. Stamoulis Broadband 1: Introduction - 37
Broadband Penetration in EU-27
(Jan. 2008)
Greece
C. Courcoubetis, G.D. Stamoulis Broadband 1: Introduction - 38
Broadband Penetration in EU-27
(July. 2010)
C. Courcoubetis, G.D. Stamoulis Broadband 1: Introduction - 39
Correlation of Prices and Broadband
penetration in EU (July 2007)
C. Courcoubetis, G.D. Stamoulis Broadband 1: Introduction - 40
Gap in Broadband penetration in EU
(2003 to 2008)
C. Courcoubetis, G.D. Stamoulis Broadband 1: Introduction - 41
Gap in Broadband penetration in EU
(2007 to 20011)
C. Courcoubetis, G.D. Stamoulis Broadband 1: Introduction - 42
Broadband Penetration in Greece
(July 2002 to Jan. 2011)
C. Courcoubetis, G.D. Stamoulis Broadband 1: Introduction - 43
Rate of yearly increase of broadband
penetration (Dec. 2007 - 2008)
0
1
2
3
4
Slova
k Rep
ublic
Gre
ece
New
Zea
land
Nor
way
Ger
man
y
Franc
e
Hun
gary
Ireland
Mex
ico
Spain
Uni
ted
Kingd
om
Luxe
mbo
urg
Cze
ch R
epubl
ic
Austra
lia
Uni
ted
State
s
Belgium
Austri
aIta
ly
Polan
d
Can
ada
Turke
y
Portu
gal
Korea
Net
herla
nds
Den
mark
Swed
en
Switz
erla
nd
Japa
n
Icelan
d
Finla
nd
OECD Broadband penetration (per 100 inhabitants), net increase, December (2007-2008), by country
OECD net increase
Source : OECD
C. Courcoubetis, G.D. Stamoulis Broadband 1: Introduction - 44
Rate of yearly increase of broadband
penetration (June. 2008 - 2009)
0
1
2
3
4
5
6
OECD Broadband penetration (per 100 inhabitants), net increase, June (2008-2009), by country
OECD net increase
Source : OECD
C. Courcoubetis, G.D. Stamoulis Broadband 1: Introduction - 45
Rate of yearly increase of broadband
penetration (July. 2009 - 2010)
C. Courcoubetis, G.D. Stamoulis Broadband 1: Introduction - 46
Evolution of Prices in Greece
C. Courcoubetis, G.D. Stamoulis Broadband 1: Introduction - 47
Evolution of Prices in Greece
C. Courcoubetis, G.D. Stamoulis Broadband 1: Introduction - 48
Internet and broadband penetration in
Greek businesses (Dec. 2007)
Sourc
es:
© E
uro
sta
t, o
bserv
ato
ry.g
r, A
.T.K
ea
rney
C. Courcoubetis, G.D. Stamoulis Broadband 1: Introduction - 49
Internet penetration in Greek users
(Dec. 2007)
Sourc
es:
© E
uro
sta
t, o
bserv
ato
ry.g
r, A
.T.K
ea
rney % of users who accessed Internet in past 3 months
Greece
EU15
Broadband
will benefit
in Greece if
Internet usage
increases
C. Courcoubetis, G.D. Stamoulis Broadband 1: Introduction - 50
Percentage of individuals regularly
using the Internet by age
at least once a week over the last 3 months of 2008
Sourc
e:
© o
bserv
ato
ry.g
r
C. Courcoubetis, G.D. Stamoulis Broadband 1: Introduction - 51
19% of individuals using the Internet for interacting with
public authorities
% of individuals in Greece using
the Internet for interacting
with public authorities broken
down by purpose
% of individuals using the
Internet for
interacting with public
authorities
Increasing trend in the rate of
individuals interacting with public
authorities in Greece in comparison
to the EU average
Sourc
e:
© o
bserv
ato
ry.g
r
C. Courcoubetis, G.D. Stamoulis Broadband 1: Introduction - 52
Summary
Broadband penetration in top-ranked EU countries is high • Some of them have the lowest prices
Large variation within EU w.r.t. both penetration and prices
Greece until recently has a high increase rate of penetration • Initially high prices dropped considerably, and
then were stabilized