Fibre to the “x” (FTTx)
Selecting the Best Access ArchitectureSelecting the Best Access Architecture
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Agenda
o Company Overviewo NGA Drivers and Architectureso Fibre to the Node (FTTN)
• Total Access 1148V• VDSL2 Bonding• Vectoring
o Fibre to the Curb (FTTC)o Fibre to the Distribution Point (FTTDP)
• Ultra Broadband Ethernet (UBE)o Summery
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Who is ADTRAN?
• Innovative Converged Access Solutions- Broad portfolio > 1,700 products]- 2010 revenue - $605 million- 2010 R&D Investment - $90.3 million- 1,700 employees worldwide
• Market Leadership- Top 10 Global Market Share Leader in DSL ports- Clear leader in FTTN / Sealed OSP Broadband
Products- Over 10M VoIP ports deployed- Comprehensive Suite of products focused on the
Access Network
• Expanding Global Presence- Headquartered in Huntsville, AL- Development centres in Phoenix, Ottawa,- Mountain View, Hyderabad
• Traded on NASDAQ: ADTN- Strong Balance Sheet- Over 20 years of continuous profitability
2010 Financial Results• ADTRAN set all-time revenue record
at $605 million• Revenue up 25% year/year• Operating Income up 48% year/year• Net Income up 54% year/year• Growth Products reached 60% of
Sales- Internetworking- Broadband Access- Optical Access
2010 Financial Results• ADTRAN set all-time revenue record
at $605 million• Revenue up 25% year/year• Operating Income up 48% year/year• Net Income up 54% year/year• Growth Products reached 60% of
Sales- Internetworking- Broadband Access- Optical Access
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FTTx Access Architectures
What Drives Access Architecture Decisions?– Bandwidth demands– Political/Regulatory requirements– Time to market constraints– Competitive threats– Capex Constraints
Access Architecture Options– Fibre to the Premise (FTTP)
– GPON– Active Ethernet
– Fibre to the Curb (FTTC)– Fibre to the Node (FTTN)
– ADSL2+– VDSL2– Bonded xDSL
– Fibre to the DP (FTT-DP)– Ultra Broadband Ethernet
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Bandwidth Drivers: Internet Traffic
Global Internet Traffic: 40% (CAGR) from 2008 -2013
Source: Cisco VNI Forecast 2008-2013
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Bandwidth Drivers: IPTV
High-definition video and ultra high speed Internet services raise the benchmark for bandwidth requirements in the access network.
3D TV will drive bandwidth requirements higher
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Incremental Costs of Deploying Fibre Deeper into the Network
GPON OLTSplitter (Fibre
Distribution Hub)
Fibre Access Terminal
Feeder Cable Distribution Cable Drop Cable
GPON ONT
Broadband Home Router
~€450/home~ €300/home
€250/home
~€300/home
~ €300/home
FTTC(up to 100 Mbps/sub)
FTTN(40+ Mbps/sub)
FTTH (100+ Mbps/sub)
2009 Benchmarks – Incremental Costs to Pass and Connect in Urban and Suburban FTTH Builds
Carrier/Analyst Estimate Cost to Pass per HH Incremental Cost to Connect per HH
Verizon FiOS €500 €400Hiawatha Broadband €600 €500SNL Kagan (Analyst) €350 €300
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Access Network: Pushing Fibre Deeper
Central Office
Feeder -Distribution
Interface
Distribution Plant (F2)
Feeder Plant (F1)
Drop Plant
6Km4Km
1 – 2Km
384 kb/sup to 12 Mb/s
20-40 Mb/s
4-Fibres/200 subs (2GbE)
RemoteTerminal
100-500 Mb/s
FTTN (Remote Terminal) FTTN (Remote
Node)
FTTC
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xDSL Performance Comparison
Bonded ADSL2 and Bonded VDSL2 8aProvide Similar Reach at ~30 Mbps
Lower Cost/Port ADSL2+ Provides Better 10 Mbps Reach Compared to VDSL2
VDSL2 Superior for: - Very High Rates- Very Short Loops
Target Range for Enhanced Broadband Services
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ADTRAN FTTN Solutions
Total Access 5000– Full MSAP Capabilities– Overlay or combo solutions– Integrated voice gateway– Full IPTV support
Total Access 11xx Series– Sealed FTTN DSLAMs– VDSL2 and ADSL2+ Solutions– Ideal for remote node locations– Lowers total cost of deployment
Total Access 12xx Series– Temperature-hardened, rack mount– Ideal for remote cabinet deployment
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• Sealed DSLAM design eliminates the need for:• Expensive cabinet enclosures• Noisy, power hungry heat exchangers• Costly site construction
• 3rd generation sealed DSLAM design• 8+ years of engineering expertise in sealed DSLAM
design• Over 100,000 units deployed in the field today
• Lower total landed cost for a sealed DSLAM changes the broadband business case
1st Gen 1124s 2nd Gen 1148s 3rd Gen Solutions
OSP Innovation – the OSP DSLAM
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Example of OSP Solution vs. Cabinet Solution
Huawei Cabinet Solution
Cross-box
ADTRAN OSP Solution
Cross-box
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Changing the Total Cost of Deployment
• Deployment is greatly simplified using OSP DSLAMs– No new right of way– No new pad work– Significantly lower shipping costs– Installation doesn’t require a crane– Smaller crew onsite for installation– No expensive heat exchanger
solutions– Lower power requirements
• Electronics costs keep falling but total deployment costs aren’t getting any cheaper– Metal (i.e. cabinets) keeps climbing– Lower density areas can’t prove in
due to first cost turn-ups
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Remote Node VDSL2Total Access 1148V
• Total Access 1148V Host and Client– 48 ports of G.993.2-compliant VDSL2 ports– Support for “5 Band” VDSL2: Profiles 8a-d, 12a-b, 17a– Backwards compatible with ADSLx Modems
• Fully sealed and weatherproof for outdoor deployment
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VDSL2 Rate/Reach
0
10
20
30
40
50
60
0 1 2 3 4 5 6 7 8
Rat
e (M
bps)
Loop Length (kft)
VDSL2 Downstream and Upstream (Profile 17a - 24 Self, 24 AWG)
Downstream
Upstream
30M to 50M 0.5mm Copper;
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Delivering 50+ Mbps over CopperVDSL2 Bonding
GE
2pr Bonded VDSL2
1148V
ADTRAN EFM Bonding Features– VDSL2 DSLAMs leverage same EFM
Bonding engine used in ADTRAN Carrier Ethernet solutions
– G.998.2-compliant– Any-port bonding across the line card– Up to 12 pairs per bonding group for
business-class NCTE– High-speed bonding engine allows for
ultra high-speed service deployment (up to 200M over 2 pairs with Profile 17a)
8xVDSL2 Bonded Uplink
Residential CPE
ADTRAN NCTE
TA5000
8port DSP
ADTRAN EFM
Bonding Engine
VDSL2/ADSL2+
••••
1
48
••
8port DSP
8port DSP
8port DSP
48 Port VDSL2 Line Card
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NormalMultiport
xDSL
Vectoring eliminates crosstalk!
+FEXT
+FEXT
+FEXT
-FEXT
-FEXT
-FEXTAnti-Crosstalk signals exchanged between DSLAM transceivers
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0
20
40
60
80
100
120
140
500 1000 1500 2000 2500 3000
Rate (M
bps)
Reach (feet)
Upstream, 12‐self crosstalk
What Vectoring Provides? – Eliminates self cross-talk on
short copper loops– Significant gains on short loops
(<1Km)
Deployment Guidelines for Vectoring– Short loop nature of this
technology leads to smaller node sizes
– Need small-form-factor, remote DSLAMs to take advantage of cross-talk cancellation capabilities of vectoring
Advancements in FTTN: VDSL2 Vectoring
VDSL2 with vectoring is ideally suited for remote node deployments
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Can Telcos be competitive with copper?
With Vectored VDSL2, 100 Mbps is possible on 2-pairs– ~2500 ft of 26 AWG PIC– ~3200-3500 ft of 24 AWG PIC
Complexity: Cost and Power– Estimated 10% adder for small vector group
sizes 48 ports– Up to 30-35% for larger vector group sizes
(192 ports) Still much less expensive than an
additional pair or more DSLAM locations
– Distribution area studies show that desired vector group size is >48 lines
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Fiber to the Curb (FTTC)
Total Access 1108VP– 8 Ports of VDSL2+POTS– Chaining of multiple units
along a fiber route– Full video support– Fully sealed for above or
below ground deployment– Remote powering– Small form factor (10” W x
15” H x 4” D)
Ideally suited to fill in the coverage gaps with FTTH Networks
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Operators’ Competitive Landscape
100Mbps is the next speed milestone – numerous national goals DOCSIS 3.0 means 100Mbps over cable is here today FTTH overbuild still requires significant capital and
installation expense (and time) FTTH is impractical and expensive in some installation
situations – the customer cannot be profitably connected Telcos need a way to serve those customers with Fibre
services but with reduced cost and installation time
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A common FTTH scenario
Fibre HereFibre Here
Want to deliver super fast internet here
Want to deliver super fast internet here
€ x/home, min. y months – no deployment
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FTTH Costs in this example
Add New Optical Access point = £100 ($160)Fibre Trenching per home = £720 ($1152)
Optical Network Termination (ONT) = £100 ($160)Customer site visit to run fibre in house = £375 ($480)
1 2 8Add New Optical Access Point
Trench Fibre in concrete/stone
Convert Optical to Ethernet
Wire Ethernet in house
Cost too high–>Another Option?Cost too high–>Another Option?
Total Cost Per Home = ~1300 GBP ($2,000) + min 4 months
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Ultra Broadband Ethernet
•No Fibre trenching through asphalt/concrete to each home•1 central ONT instead of 8 individual ONTs•No Truck Roll to household for ONT install•No truck roll to wire up Ethernet in home•Ethernet over existing copper, specialised packaging & power distribution make it all work
1 2 8Bring Fibre to Existing Copper Distribution Point (DP)
A fraction of the cost of FTTH + turn up in days, not weeks
A fraction of the cost of FTTH + turn up in days, not weeks
Install Ultra Broadband Ethernet ONT in DP
Use Existing Copper Pair Self Install
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Today’s Customer Network
Distribution Point (DP) [Subscriber Drop Pedestal]
– 8-16 homes per DP– Drop length < 75m – Pole mount or below ground mount
in footway box
Cross Box
Subscriber Drop
Problem Area€€€
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Ultra Broadband Ethernet – a new solution category that can provide Fibre services into areas where FTTH is not practical or cost-effective– ~Half the cost of FTTH deployment is to connect a subscriber
already passed by Fibre– Can turn telco into landscaping company!
Leverages existing copper and new technologies– Uses existing drop pair from distribution point (pole, pedestal,
footway box, MDU frame) to subscriber premises– New 100Mbps symmetric Ethernet over a single pair: Fibre fast at
a fraction of the cost
Ultra low power– Green technology (~1W per subscriber)– Powered by subscriber – lower capex and opex
UBE: What is it?
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Ultra Ethernet Meets the aggressive goals
Fast Downstream: Minimum 100Mbps Fast Upstream: Minimum 100Mbps Low CAPEX & OPEX:
– leverages existing copper pair & self install– No maintenance – install it and forget about it– Low cost CPE option – simple media adapter
Accelerate Revenue: hours not months– No Fibre trenching and network power delays– Self install
Flexible– Very small, sealed and submersible – install anywhere– Can leverage GbE, GPON and Active Ethernet on uplink– Small port granularity (8 port)
Ultra Green: ~1W per subscriber
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Point-point Ethernet or PON
Min 100Mbps x 100Mbs Ethernetpower
100BaseTUB
E O
NT
up to 150 meters
Low voltage backpower
Ultra Broadband Ethernet ONT•Sealed and submersible
• install anywhere, zero maintenance•Very low power
•less than 10W for 8 ports•Extremely small
•10cm x 36cm
• Easy Install
• Converts external signal to 100BaseT (GbE in future)
• Provides back power to UBE ONT
Minimum 100Mbps in both directions, very fast to deploy, very low CAPEX & OPEX
Minimum 100Mbps in both directions, very fast to deploy, very low CAPEX & OPEX
Existing subscriber drop
Solution Details
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Ultra Broadband Ethernet is Real
• Hardened package• Temp Range -40 To +65C• Can be installed in a footway box, MDU
Basement and Pole
• 100M symmetrical – future upgrade to 250 M• Support for bonding to achieve 1Gig• Rate –reach 100M to 200m
• Line Code is PAM-5• GigE & GPON Uplink options
• Future support for NG-GPON
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A toolbox with all the right tools
• ADSL2+: basic internet access & SD video - Can’t do 100Mbps
• FTTN w VDSL2: – Up to 100Mbps DS, 50Mbps US (1,400 ft to 2,700ft depending on
vectoring and bonding)– Appropriate for cross connects with short loops
• FTTC: – Appropriate for Greenfield in certain cases
• FTTP: Greenfield and select brownfield– Can easily do 100Mbps and beyond– Only cost effective in greenfield or certain brownfield scenarios
• Ultra Broadband Ethernet (cont’d)
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Con’t
Ultra Broadband Ethernet– Brownfield region where fibre installation is difficult super fast internet is desired but FTTP doesn’t prove in due to
high cost of fibre installation– Highly competitive region where time to market is critical Regaining a lost customer is very expensive. Ultra Ethernet
can be deployed quickly and tactically as defense against cable providers
– Where likely take rate is uncertain Can deploy an 8 port Ultra Ethernet solution for same price as
one FTTH customer!– Multi-dwelling units: leverage existing wiring and capitalize on self
install advantage– Others?