© 2013 Colt Telecom Group Limited. All rights reserved.

Evaluating FTTx as the next fibre access opportunity for Colt

Valéry Augais

Strategy & Architecture

2

Contents

1 Introducing the two distinct cases: off-net and on-net

2 Managing a highly multi-level fragmented situation in EU

3 Reviewing candidate active technologies

3

Colt – Europe’s information delivery platform

• Connecting 22 countries, 39 metro

networks and >150 cities

• 20 data centres and 19,000 connected

buildings

• 44,000km EU high capacity long distance

network, 27,000km transatlantic

4

The long story of fibre access at Colt

• Launch of Colt business in 1993 in

London

– Followed by Frankfurt in 1995 and

Paris in 1996

• Fibre as the mainstream access

since the beginning

– Using shared customer ring topology

and SDH, EoSDH then native

Ethernet as active technologies

• Highly resilient access architecture

– Dual-homed access rings with

geographical node diversity wherever

practical building on Carrier Ethernet

introduced in 2007

node AN

metro core 1G & 10G

fibre access

CPE

5

The long story of fibre access at Colt

• Launch of Colt business in 1993 in

London

– Followed by Frankfurt in 1995 and

Paris in 1996

• Fibre as the mainstream access

since the beginning

– Using shared customer ring topology

and SDH, EoSDH then native

Ethernet as active technologies

• Highly resilient access architecture

– Dual-homed access rings with

geographical node diversity wherever

practical building on Carrier Ethernet

introduced in 2007

node AN

metro core 1G & 10G

fibre access

CPE

Where and how will FTTx come into play?

6

The off-net case today

• The off-net city profile

– PoP with network equipment

– No fibre access medium (nor copper)

– Leased bit-stream access with E-NNI delivery at the PoP

Colt demarcation

(optional)

PoP

AN

1G & 10G

E-NNI

OLO bit-stream

access

Colt core

7

The off-net case today

• The off-net city profile

– PoP with network equipment

– No fibre access medium (nor copper)

– Leased bit-stream access with E-NNI delivery at the PoP

Colt demarcation

(optional)

PoP

AN

1G & 10G

E-NNI

OLO bit-stream

access

Colt core 75% of all cities where Colt operates!

8

1G & 10G

E-NNI

The off-net case in FTTx time: an opportunity

Colt demarcation

(optional)

OLO bit-stream

access PoP

AN

• Leased dark fibre as the main access

– Keep bit-stream as complementary access to cope with coverage & pricing/ROI issues

• The FTTx promises

– Better control of service characteristics (BW, QoS)

– Enabler of very high-speed services (from sub-1G up)

OLO fibre plant

Colt demarcation

Colt core

9

1G & 10G

E-NNI

The on-net case today

• The on-net city profile

– MAN city with Colt-owned & operated fibre as the main access medium

• Leased copper (ULL) as complementary access to reach off-net locations

• Leased bit-stream access as the last resort

– Multiple nodes in the largest cities (LON, PAR, FRA, BRU, ZRH, etc.)

Colt node AN

Colt metro core CPE

(x1…5)

EFM

DSL PTT CO

(x10…50)

PTT

copper

plant

Colt demarcation

(optional)

OLO bit-stream

access

1

2

3

10

The on-net case in FTTx time: a threat for DSL

• DSL revenues highly exposed over time

– Customers more attracted by fibre with performance outperforming copper’s

• FTTx gradually replacing copper as second-choice access

1G & 10G

E-NNI

Colt node AN

Colt metro core CPE

(x1…5)

EFM

DSL

PTT

copper

plant

Colt demarcation

(optional)

OLO bit-stream

access

1

2

3

Colt

demarcation

(x10…50)

PTT CO

OLO fibre

plant

11

A highly multi-level fragmented situation in EU

High risk of heterogeneous architectures & operating models

• Commercial offering

– Slow building up process with few trial opportunities so far in FR, CH and NL

– Various approaches for the pricing model commercially structured for P2P or P2MP

– Missing comprehensive business-targeted SLAs (protection, MTTRepair, MTTRespond)

– Development of B2B systems needed for fibre eligibility check and automation

• Regulatory environment

– Managed locally by national regulatory authorities

– Variety of different rules: duct vs. fibre sharing, dense vs. non dense area, etc.

– B2B market most often not the primary focus

• Work in progress at all levels

• Business development complexity and challenges

for service providers with multi-country presence

12

Technology Pros Cons

GPON • Cost competitive

• Proven

• Efficient fibre use (down to the MP)

• Perfect fit for residential users

• Security concern (broadcast)

• Optical reach (power splitter)

• Uncertain per-customer BW

management (shared medium & TDM)

P2P • Perfect fit for business customers

• Available as a straightforward topological

variant of existing metro Ethernet

network

• Optimum reach with no splitter

• Fibre greedy (CO-MP section)

WDM PON • Perfect fit for business customers

• Efficient fibre use (down to the MP)

• No standard yet (NG-PON2 went for

hybrid TWDM)

• Vendors’ proprietary solutions

• Low volume hence more expensive

Candidate active technologies (fibre-based)

13

Technology Pros Cons

GPON • Cost competitive

• Proven

• Efficient fibre use (down to the MP)

• Perfect fit for residential users

• Security concern (broadcast)

• Optical reach (power splitter)

• Uncertain per-customer BW

management (shared medium & TDM)

P2P • Perfect fit for business customers

• Available as a straightforward topological

variant of existing metro Ethernet

network

• Optimum reach with no splitter

• Fibre greedy (CO-MP section)

WDM PON • Perfect fit for business customers

• Efficient fibre use (down to the MP)

• No standard yet (NG-PON2 went for

hybrid TWDM)

• Vendors’ proprietary solutions

• Low volume hence more expensive

Candidate active technologies (fibre-based)

• P2P is the winner today

• Progress of true WDM PON will be watched

• GPON is not seen good for business customers

14

What about VDSL2 copper in the interim?

• Colt ULL deployment model

– In selected cities (100+) and at the CO level only

– Only the symmetrical EFM DSL flavour (G.SHDSL) but no ADSL2+/VDSL2

– Historically lack of business case for deeper deployment at street level

– Uncertain driver for a possible change given the now (slowly) emerging FTTx

• Vectoring and regulatory environment

– VDSL2 performance limitation of BW vs. reach significantly mitigated with vectoring

– However subject to all VDSL2 lines in the cable being controlled by one operator

– New SLU model of just one VDSL2 operator offering bit-stream access to other operators

• At the very best only a niche application (CO level)

• Introduction only at the CO level even arguable

15

Target design

• FTTx seamlessly integrated into Colt Modular Multi-Service Platform (M-MSP)

– Single CPE and delivery process for FTTx and on-net accesses

• FTTx as per P2P dark fibre Colt demarcation

(optional)

PoP

1G & 10G

E-NNI

node AN

(x1…5)

EFM

DSL

PTT

copper

plant

Colt demarcation

(optional)

1

2

3

Colt

demarcation

(x10…50)

PTT CO

OLO fibre

plant

CPE

OLO

bit-stream

access

1

2

1G & 10G

E-NNI

AN

OLO

bit-stream

access

OLO fibre

plant

Colt demarcation Colt metro core

on-net city

off-net city

: P2P dark fibre

: Ethernet AN & CPE

16

Summary

• P2P as the selected FTTx option to support Colt business customers

– Interest in WDM PON technology once standardised and matured

• FTTx as a simple access variant of Modular MSP platform

– Easy and quick integration at network, system and process levels

• FTTx as the perfect off-net option enabling Small Cells and LTE/LTE-A

– DSL and wireless access likely to face hard time BW and reachability wise

To be followed over the next couple of years

as FTTx operators offers in EU are just and

slowly taking up in difficult economies

© 2013 Colt Telecom Group Limited. All rights reserved.

Thank you. Questions?

valery.augais@colt.net

www.colt.net