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Ultra Fast Broadband update
John Greenhough Chief Technology Officer
CommsDay Summit: 27 July 2011
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July 2011 2
Topics for today:
• Deployment update• Rollout schedule • Retail Service Provider engagement
• Driving productivity for end users
• Building demand• Summary
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July 2011 3
UFB: Driving Productivity • World Bank suggests investment in Broadband has high flow‐through to
nationwide productivity: – 10% increase in telecommunications penetration via Broadband :
expected to increase economic growth by 1.2% to 1.4%.
• Indirect / induced benefits: 1.71x capex boost into GDP Source: Studies of US, Germany and UK, Raul Katz, Professor at Columbia Business School
Source: Broadband Infrastructure Investment in Stimulus Packages, Qiang, World Bank 2009: http://www.worldbank.org/
0.43
0.60
0.77
1.21
0.730.81
1.12
1.38
0
0.5
1
1.5
Fixed Mobile Internet Broadband
High income economies
Low & middle income economies
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July 2011 4
NZ Broadband vs peers: OECD
Source: www.oecd.org/sti/ict/broadband. As at December 2010. Fixed broadband only.
5
10
15
20
25
30
35
40Broadband subscriptions per 100 inhabitants
NZ mid‐field on broadband penetration vs OECD peers, but slightly ahead of Australia
Ranked17
Ranked18
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Source: Akamai “State of the Internet”, Q4 2010.
2
4
6
8
10
12
14
16
NZ Broadband vs peers: Akamai
NZ well behind leaders on Internet speeds, but also slightly ahead of Australia
Ranked27
Ranked30
Fibre Rich
Average Connection Speed (Mbps)
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Status of deployment and partners
• Whangarei:o ~40km already deployed o Beta trial customers connected in June 2011o ~10 schools targeted this year
• Central North Island: o Hamilton, Tauranga, Wanganui July 2011o Service activation: Q4 2011
• Christchurch:o Deployment expected to commence Q4 2011
• Auckland, Wellington & other locations: o Initial deployment to commence Q4 2011
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July 2011 7
UFB deployment underway:
Images: Northpower
25,000km of fibre: • ~40km laid so far • 8 year build to 2019• Priority users by 2015 • Mixture aerial &
underground • Air‐blown fibre flexibility• Proactive & timely
community engagement• Safety ethos
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Local deployment planning: example
Frankton / Hamilton Lake area
Hamilton: Te Rapa areaSource: UltraFast Broadband Limited
• Priority users in focus• Chorus & Enable footprints will convert to UFB
• Deployment plans published as agreed
• Local stakeholder engagement involving RSPs
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Entity coverage:
06/2011 06/2012 06/2013 06/2014 06/2015 06/2016 06/2017 06/2018 06/2019 12/20190
200,000
400,000
600,000
800,000
1,000,000
1,200,000
Non‐priority
Priority
Entities Passed
Source: CFH
Rapid increase in premise coverage expected – both priority (Business, Schools, Health) and non‐priority
1,400,000
1.325m entities passed by Dec 2019
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UFB deployment – underground
Images: Northpower
Fibre, Whangarei
Underground deployment – preferred deployment for greenfields & areas without poles
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July 2011 11
UFB deployment – aerial
Aerial deployment – low cost, low visual impact in areas with existing poles
Images: Northpower
Fibre, Whangarei
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Alternative deployment: Kelson trial
Images: Mini‐ & micro‐trenching trial; Chorus / Downer NZ / Marais Lucas, Wellington region Feb 2011. Credits: CFH, Chorus
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Re‐cap: UFB Product Structure Layer 2 Downstream • From 30Mbps• From 2.5 Mbit/s CIR
Layer 2 Upstream • From 10Mbps• From 2.5Mbit/s CIR
Video: Multicast (IP) &/or Broadcast (RF)
Quality of Service: • CIR (from 2.5 Mbps)• EIR
Ports: • 1 x Video (RF), 1 x Wi‐Fi
(optional) • 4 x Ethernet • 2 x Phone
Redundancy / Resilience products
Service Level AgreementsAvailability, repair time, connect time, Layer 2 traffic
Single POI
Co‐lo
catio
n
Layer 1 Dark Fibre• Point‐to‐point• Point‐to‐multipoint
(from 2020)• Non‐building access
points
Wholesale products include: 30/10 Mbps Entry Level Consumer100/50 Mbps Premium Consumer 100/100 Mbps Small to Medium Business 1G/1Gbps Big Business10G/10 Gbps Enterprise
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Product and price: Residential
TelephonyCommitted Data (CIR) Upstream DataDownstream DataWholesale Price
Copper POTS (voice) + ADSL2+
1 line 45 Kbps850 Kbps
10‐13 Mbps~$60
Fibre UFB 100/ 50
2 lines2,500 Kbps50,000 Kbps100 Mbps
$55
Improvement
+100%>60 times>60 times10‐7 times
Note: Wholesale prices per month ex GST.
• UFB offers vastly superior product for lower wholesale price• Retail prices set by Retail Service Providers but will reflect wholesale input costs
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Downloads: (minutes) Uploads: (hours)
Genuine UFB speeds will greatly improve user experience
3750 photos 1875 songs DVD 4.7GB
Avatar 3D BluRay 1080p HD: 14GBNote: Example assumes maximum EIR with 10% congestion; UFB 100/50 with 2.5M CIR.
FlicKr my Photos 32.5GB
Back‐up my Laptop 175GB
Note: Example assumes each product is at maximum available CIR.
How long does it really take?
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Product and price: Business
$750
$1,500
$380 $455
• UFB offers businesses symmetric services for much less than current prices
• Will enable: o cloud computing, o improved WAN mgt (particularly WAN
tails in smaller towns), o IP telephony / unified comms etc.
• Much wider access for Councils, Businesses, Health providers etc.
Note: Wholesale prices per month ex GST.
100 Mbps 1 Gbps
Current market prices (CBD & Metro)
Year 1 UFB price
$1200
$600
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UFB productivity benefit:
Symmetric UFB products will reduce dependence on local hardware:
• Back up • Business continuity / disaster recovery• Extending Remote Working• Coordination across multiple sites
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Retail Service Provider engagement
While a “Reference Offer” wholesale agreement is still being agreed, a number of RSPs have already concluded agreements to sell UFB services
• January: First draft Wholesale Services Agreement (WSA) released
• April: Industry workshop chaired by TCF • May: Definitive UFB partnering agreements• June: Further WSA version released• July:
o Consultation workshops on General Terms chaired by TCF o Draft Supporting Documents (Ops Manual, Service Descriptions, pricing detail)
released • August: Further consultation on Supporting Documents. • Late August: Target for completion of WSA and v1.0 Supporting Documents
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Retail plans emerging:
Example: Uber Group, Whangarei: • Established wireless broadband provider • Delivering broadband over Northpower fibre since 2010 • New retail plans announced 21st July:
– 50Mbps symmetric with 150GB data cap: $99 including GST – 50Mbps symmetric with 250GB data cap: $199 including GST – Offered to both residential and business customers– Free local calling – 12 month term – Available on Northpower UFB
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Critical Success Factors for RSPs:
• Provide services “on net” where possible• Keep contention ratios low• Make data caps substantial – appropriate for UFB speeds• Provide a high quality service, as fairly easy to switch • Support local peering & caching, especially in smaller towns • Bundle & package ancillary services to be a “one stop shop”
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UFB allows RSP to innovate & manage solution
NNIONT
WWWBackbone
RSP cloud
Cache
PoI
Back‐upVideo Voice
UFB Candidate Area 1
Security etc.
PoI
NNICIR
CIRHousehold
Corporate Office
UFB Candidate Area 2RSP backhaul & cloud
Low contention, “private cloud” offers most likely to succeed
Cache
RSP visibility & network management
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July 2011 22
UFB usage: Case Study
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UFB productivity benefit:
• Cloud computing• Higher speed WAN tails• IP Video Conferencing • Export‐oriented (ERP, sales & marketing) • Supply chain improvement, cost reduction • Centralising IT Reducing Cost
CFH / TUANZ survey: 80%+ of surveyed businesses intend to take up UFB within 1 year of availability
Source: CFH / TUANZ, Dec 2010
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UFB: Driving Productivity: Auckland/BOP (BERL)
Early rollout = 2012Delayed rollout = 2015
Source: BERL, Auckland & Bay of Plenty Councils, July 2011.
Auckland / BOP report expects economic gains, timely roll‐out, adoption and uptake of UFB
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Demand side initiatives:• Identifying and aggregating demand• Tail substitution – DSL to UFB • Co‐marketing between RSPs & LFCs• Developing usage case studies• Exploring concept for mobile UFB Experience Centre• Researching innovative usage / apps using UFB • Seeding community hubs• Building local ICT capability • Seeking role models & advocates in usage
CFH and UFB deployment partners are building a number of demand side initiatives
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Digital leadership in action
Whangarei
AucklandHamilton
Tauranga
New Plymouth Napier‐Hastings Wanganui
WellingtonNelson
Christchurch
Dunedin
Invercargill
Digital Leadership Forum in action
Digital Leadership Forum being explored/ instigatedOther digital strategy initiative(s)
Many cities & towns have local initiatives underway to make the most of UFB, RBI and local fibre builds
NOT EXHAUSTIVE
Digital Leadership Forum: Example of digital leadership initiative Purpose: Brings together local stakeholders on demand & supply side to realise UFB benefits
Objectives: To develop & execute a strategy to realise local economic development goals using UFBOpportunities for TLAs to: Assist & accelerate deployment Communicate UFB Map areas of highest demand Source local case studies Lead by example, as fibre users
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Community Awareness Workshops:Purpose: • Education and information sharing • Demand stimulation• Focus on both connection and usage ‐case studies
• Local point of contact for more info
Audience: • Free • Key influencers by sector. End users. • Business, health, schools, residential
Information: • Deployment timetable and process• Local Retail Service Providers • How to get connected
Image: Experience Centre / Spyglass NZ. Not for re‐use
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Summary:
UFB deployment underway & will gain pace
New open access industry structure
Simple product structure Low Wholesale fibre prices RSPs innovating Productivity benefits for end
users Demand building
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Questions?
• Thank you • For further questions, please feel free to email Anna
Verboeket: anna.verboeket <AT> crownfibre.govt.nz