gerlas van den hoven - technical view upon open access
DESCRIPTION
Presentation at the Workshop on Municipal Fiber Networks, October 24th 2011 in Ghent, Belgium. The workshop was organised by Ghent University - IBCN / IBBT. More information about this event can be found at http://http://events.ibbt.be/en/workshop-municipal-fiber-networks.TRANSCRIPT
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The information age
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Today we enter the information age
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... without good infrastructureNo information age
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How to protect the investment?
How to make money?
What is the right technology choice?
Open or closed network?
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Open or closed networks?
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• Traditional business models are vertically integrated ‣ Larger economy of scale
‣ Bigger piece of the pie
‣ Market dominance
‣ But also: technically the easiest solution
• Business models of the Digital Age are open‣ Every person makes his own choices: no more one size fits all products
‣ Each layer in the food chain is becoming a specialism
‣ No single killer app - the success of mobile apps/iPhone lies in the fact that they are not developed by Apple or AT&T
‣ And: open standards enable interoperability
Openness creates business opportunities
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3 tiersOpening FTTH networks
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Service
Activenetwork
Passivenetwork
Service
Activenetwork
Passivenetwork
Passivenetwork
Service
Activenetwork
Service
ServiceService
Service
Networkelements
Closedmodel
Openmodel
Activenetwork
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Roles in the foodchain
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Service
Activenetwork
Passivenetwork
Networkelements
Marketing expertise, customer interactions, retail
Network expertise, operational excellence, wholesale business case
Financial expertise, long-term view, security of investment, and CASH!
Very different roles
Very different expertise
It would be a surprise to find these all combined in a single company
And don’t forget about the CASH!
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Fiber infrastructure
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• Considerations ‣ Point-to-point vs point-to-multipoint
‣ Position and size of PoPs
‣ FTTHome vs FTTBuilding vs FTTCurb
‣ Value of the investment
• Deployment examples‣ Verizon (“incumbent”) deploys point-to-multipoint FTTH in suburban areas
‣ Netcologne (“newer operator”) deploys FTTB in MDU environment
‣ Reggefiber (“investor”) deploys point-to-point FTTH in SDU towns and cities
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Network infrastructure
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• Considerations ‣ GPON, PTP Ethernet, EPON, WDM PON, RFOG, VDSL, DOCSIS 3.0, ...
‣ Power consumption and density in POP
‣ Leap-frog bandwidth with larger upfront investment vs incremental bandwidth steps with recurring investments
‣ Symmetric vs asymmetric networks
‣ Operational ease vs larger complexity in order to support “legacy” equipment
• Deployment examples‣ Deutsche Telekom (“incumbent”) deploys GPON to reduce active equipment in the field
‣ UPC (“cable operator”) deploys DOCSIS 3.0, making more incremental capex steps
‣ KPN (“incumbent”) deploys PTP Ethernet for ease of operations and ability to combine wholesale and retail offerings
‣ Altibox (“newer operator”) deploys PTP Ethernet enabling multiple service providers
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Utopia vs RealityOpening FTTH networks
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Service
Activenetwork
Passivenetwork
Networkelements
Service
Activenetwork
Passivenetwork
Closedmodel
Passivenetwork
Service
Activenetwork
Openmodel
Realisticmodel
Bits
trea
m a
cces
s
Fibe
r ac
cess
Par
tner
ship
mod
el
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A pragmatic open networkPartnership model
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• Let everyone play his/her role ‣ Fiber deployment requires specific types of investors
‣ Active network operations requires high-level of knowledge to make the right decisions in terms of technology and network design
‣ The active network operator has a very strange position: while he depends on the investor to supply the passive infrastructure, he is also dependent on the service provider to make money
‣ It’s unrealistic to believe that 10 service providers will magically appear once the network it is operational
• Deployment example: The “Dutch” model‣ Reggefiber invests in fiber and operates the passive network
‣ KPN rents the fiber and take the roles of active operator and service provider
‣ Reggefiber also operates its own active network and rents the connectivity to Vodafone and a few smaller providers
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Opening FTTH networks
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• Conclusion: There is no one model that meets all requirements ‣ Technologies each have there own quirks
‣ Incumbents come from a very different position than newer operators
‣ The expertise of the operator will determine which role or roles he is likely to take
‣ Forming partnerships along the open model “axis” is a strong step in the right direction
Open networks are not about achieving some ideal model, but about attracting users to the digital highway and changing our society into a more sustainable one
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Attracting the user
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Don’t tell me the users are not interested in new services
HD content, 3D-TV, e-health, teleworking, gaming,smart energy, ambient intelligence, cloud computing domotica, security, education, knowledge ... and more!
If you offer them in the right way and market them the right way, then the user will even pay for them!
Thank you!