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FIBER - THE HEARTBEAT OF NETWORK EVOLUTIONJan van Tetering, VP Fixed Networks EMEA February 21, 2013

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EQUALITY SHOULD NOT HAVE LIMITS

Kindergarten teach on i-pad (not chalkboards)

MalariaNoMoreVillageReach

66% Sleep with smart phone

FishermenFriend

1% increase of BB penetration = 1.6%

GDP increase

Percentage of individuals using the internet

Source: ITU 2012

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TOTAL DAILY TRAFFIC BY YEAR (2011-2016)

Wi-Fi Home

Metro Cell (Wi-Fi)

Metro Cell (3G/LTE)

Smart offload

Macro

WIFI AND VIDEO DRIVE THE BANDWIDTH DEMAND

In 2012:

100MTABLETS sold worldwide

By 2016:

85%of wireless communications will rely on FIXED networks

Source: Bell Labs 2012

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WHATEVER THE NETWORK EVOLUTION PATH -FIBER IS CRUCIAL

METRO CELLS BACKHAUL

COPPER AND CABLE EVOLUTION

FIBER DEPLOYMENTS

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5%more subscribers means

15%CAPEX/user reduction

At 20% take-up rate:

20%Pay-back time

reduction

Service providers need to explore ways to connect more and better to accelerate ROI

CUTTING THE COST TO CONNECTIMPROVING THE BUSINESS CASE

20%Error rate for 1st

connection on a PONEurope Tier-1 operator feedback

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YOU NEED SMART TRAFFIC MANAGER FOR…

PREMIUM VIDEO SERVICE DELIVERY

TIERED PRICING

FLEXIBLE WHOLESALE

High end

Subscriber base

ARPU

Low end

Up-sell

Increase baseMiddle

ENTRY-LEVEL TO INCREASE ADOPTION … AND UPSELL LATER

TAKE FULL CONTROL OVER BANDWIDTH CONSUMPTION TO ENSURE DIVERSITY, QoS , FAIRNESS AND RESOURCES

MANAGED OR OTTCOMPETITION ON QoS LEVEL AND FAIRNESS

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PREMIUM VIDEO SERVICE DELIVERYFOR ENHANCED END-USER EXPERIANCE

BUFFERING CAPABILITIES TO COPE WITH CONGESTION

TRAFFIC PRIORITIZATION

SELECTIVE PACKET DROP IN CASE OF OVERLOAD

GAMING

E-LEARNING

VIDEO CONFERENCING

SOCAIL MEDIA

TV ON TABLET, COMPUTER …

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OPERATIONAL EXCELLENCEFOR THE FIRST TIME-RIGHT CONNECTION

• VALIDATE FIBER CONNECTIONS BEFORE END-USER NEEDS TO BE CONNECTED

• LOCALIZE FIBER PROBLEMS QUICKLY AND MAKE OPERATIONS EFFICIENT

• PRO-ACTIVELY MONITOR & MAINTAIN YOUR NETWORK

REDUCES OPEX BY INCREASING EFFICIENCY

INCREASE REVENUES BYDECREASING RISKS

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CONNECT FASTER – CONNECT MORE – CONNECT BETTER

INCREASE CUSTOMER BASE

SMALL CELL BACKHAUL

BUSINESS USERS

FLEXIBLE WHOLESALE MODELS

ATTRACTIVE SERVICES

Entry level pricing to increase adoption

Up-sell

In 2013: 30% of all FTTH/B revenues (*)

50% TCO savings with metro cells: leverage existing wireline infrastructure for backhaul

Open new business opportunities

(*) source: Point Topic 2012

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