RFTS to Reduce OPEX Costs for FTTH Deployments

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1 RFTS to Reduce OPEX Costs for FTTH Deployments Troy Veitenheimer, General Manager Jorge Cano, President Christopher Dorny, VP of Marketing NTest Inc. Phone: (952) Table of Contents Summary... 2 Introduction: Service Provider Business Challenges... 2 Fiber Monitoring Dynamics... 3 OPEX Challenges... 4 Fiber Monitoring Economics... 5 Conclusion... 7

2 Summary This year and the next will be pivotal for PON fiber monitoring solutions, as this technology has moved from a concept to commercial products and early deployments. Service providers have become increasingly aware of the advantages of fiber monitoring systems to maintain a high quality of service (QOS) and reduce their mean time to repair (MTTR). Traditional fiber monitoring systems use reflective and non-reflective events from an OTDR trace to identify faults. PON systems must use enhanced reflective and backscattering techniques to distinguish between subscriber s optical network terminals (ONT), even those that are at nearly the same distance from the OLT. The adoption of PON fiber monitoring by the marketplace will be driven by simple economics. This paper highlights some results of an exhaustive economic analysis as service providers deploy FTTH services to the end user. Specifically, this paper models operational costs, and concentrates on both the operational impact as well as the impact on capital expenditures through the use of fiber monitoring in PON deployments. Introduction: Service Provider Business Challenges Service providers have turned to converged or triple-play services to end subscribers, aggregating three types of services over a single delivery platform, to broaden their offerings while also reducing their capital expenditures (CAPEX). PON-based access networks have been widely embraced in the evolution to deploy these converged services. The large CAPEX savings that PON enables is due to the fact that the fiber connected to the OLT port is distributed by the splitter into multiple channels to the ONT of different users. Because the optical distribution network does not have any active nodes, this technology is known as Passive Optical Networking (PON). The distance between OLT and ONT can be long. The feature of passiveness makes the network deployment flexible, because the equipment room and power supply are not needed. The following lists the CAPEX advantages of PON: The equipment and fiber at the CO are shared by end users, so the cost is lower than point to point networks. Because equipment room and power supply are not needed, the capital construction cost is greatly reduced. The active equipment is removed from the access network, so the effect from electromagnetic interference such as lightning is reduced. Thus, the failure rate of the line and the external equipment is reduced. Passive optical network (PON) architectures are designed without redundancy which means there is no network protection. This also means any maintenance requirement within the PON must take the services down until the problem is Page 2 of 7

3 resolved. Therefore, providers need the fastest possible tools to quickly isolate and repair problems, while minimizing downtime. Electronic equipment at both ends of the PON, the OLT and the ONT, are designed to communicate with one another. If the OLT loses connection with a single ONT, it is assumed that the cause of the outage is between the splitter and the ONT. If the OLT loses connection with all the ONTs of one splitter, the problem is probably between the central office (CO) and the splitter. The issue remains that the distance between the OLT and ONT are long (i.e. 20 km) and the electronics at the ends of the PON cannot determine the exact location of the problem. The FCC has reported that 25% of network disruptions are caused by fiber cable outages (many of which are affecting E911 services). With the increased deployment of fiber for FTTH networks, predictions expect this number to steadily increase. To combat this issue, many service providers have turned to fiber monitoring systems to reduce the mean time to repair (MTTR). Fiber Monitoring Dynamics FiberWatch, a Remote Fiber Monitoring System (RFMS) utilizing optical timedomain-reflectometer (OTDR) technology, is a well-known tool for monitoring and troubleshooting optical fibers in cabled optical networks. OTDR technology is able to locate and characterize reflective and non-reflective events in optical fibers by sending laser pulses of varying widths to pinpoint the exact location of a fiber fault on a map (as shown in figure 1). Figure 1 RFTS Graphical User Interface (GUI) Once a network is in operation, a carrier can permanently place a remote OTDR in a rack mount configuration at a centralized location, which can be programmed to routinely test fibers, for rapid detection of attenuation, reflectance and discontinuities along the entire length of the cable for the fibers under surveillance. This data, from day one of system deployment, provides a historical reference benchmark from which an operations team can continually assess network quality. A standard commercial optical time domain reflectometer (OTDR) cannot be deployed for continuous monitoring of active PONs because the RFMS system cannot distinguish between the drop sections towards the optical network terminals (ONT) and cannot overcome the high optical losses of power when splitting the light. Since Page 3 of 7

4 the trace is a composite view of all subscribers before and after the splitter, the provider is not able to resolve as separate peaks each of the subscribers. PON Fiber Monitoring uses a passive, non-intrusive OTDR technique that acquires reflections and backscattering emissions from the ONT using very short pulse widths of light. The shorter the pulse of light, the more granular the trace becomes. Utilizing a complex PON analysis algorithm, a service provider is able to disentangle each individual fiber from the composite trace. Continuous trace monitoring rapidly identifies discrepancies from the reference trace and issues an alarm to dispatch the correct team to resolve the event. This method has proven effective in distinguishing between subscribers with fiber length differences of less than 1 meter. Reflectors can also be used to enhance the visibility of Optical Network Terminals (ONT) that are even closer together. Figure 2 PON Reference Trace OPEX Challenges As service providers face increasing pressure to be profitable, traditional fiber management is often not enough. Increasing profits requires decreasing operational expenses (OPEX). Unfortunately, PON technology has not been designed to minimize operational costs. It has been focused on reducing the capital cost of deploying fiber, leaving operational decisions for the future. Many service provider studies are showing that the operational expenses to manage this new fiber network using the manual processes they utilize today are increasing. Page 4 of 7

5 This is due to the continued dispatching of technicians to the Outside Plant (OSP) and the huge increase in fiber miles deployed. According to OSP Magazine, Telecom industry analysts estimate the cost of the average truck roll at anywhere from $150 to $600, depending on your location, the work being done at the site, and the technician s skill level and salary. The bulk of that price tag is the personnel cost of paying a trained telecommunications technician to drive from Point A to Point B. (Bob Berry, Road to Nowhere, OSP Magazine, July 2005). The typical process today when a service disruption occurs on the optical network involves the following: The first step upon receipt of these alarms is to diagnose the cause. After a problem has been identified, technicians must be dispatched, with all of the necessary equipment and technicians on board, to the closest access point with visibility to the fault in order to determine the optical distance to the fault. Next, the optical distance must be correlated to a physical location taking into account helix factor, stored slack fiber, and elevation changes. Upon finding the fault location, appropriate action must be taken to remedy the fault. These truck rolls may be the most significant operational cost incurred by the FTTH networks. A point that needs to be emphasized with PON deployments for larger service providers is that there are typically multiple dispatches required to fault locate as there are different work groups responsible for different portions of the network. I&M is typically responsible for the drop, ONT and inside cabling in MDUs Cable maintenance usually is responsible for the Feeder and Distribution links but sometimes they have to refer the problem to cable construction because they may not have the tools or the expertise to fix it. A CO technician is responsible for the office electronics and cabling to the cable vault. So either one group is first dispatched as a best guess and then another group is dispatched, usually on the following day, when the first work group cannot find the problem or does not have the tools or expertise to fix it. This can go back and forth between groups until the problem is finally identified and resolved. Some service providers even send out multiple groups simultaneously in order to reduce MTTR and once the problem is sectionalized, the group responsible stays and fix s the problem while the other group returns or goes to another work site. Fiber Monitoring Economics To illustrate the ballooning OPEX costs and the impact that truck rolls are having on a service provider s bottom line, we modeled two PON deployments (one using PON fiber monitoring and the other without) based on the actual costs and procedures for a large FTTH service provider with 1.2 million homes passed. Throughout the year, an additional 1.3 million homes are added bringing the total to 2.5 million homes by the end of the year. The architecture of the network is shown below: Page 5 of 7

6 Figure 3 PON Model Architecture Assumptions based on FTTH service provider network: General Take rate = 35% $55/hr average dispatch rate Video take rate = 35% Growth Rate Per Month: 10% 32 legs per PON system Churn Per Month: 1.5% 40% splitter fill: 12.8 legs utilized Construction Test time per F1 fiber 15 minutes (Includes travel & wait time for 2 techs) Test time per F2 fiber 24 minutes (Includes travel & wait time for 2 techs) Maintenance Report Rate = 12% Repeat Trouble Report Rate = 14% Trouble Report Rate = 0.40% per month Video trouble Report Rate = 2.00% per month Fiber cable trouble rate = 0.08% per month Time per trouble dispatch = 4 hours Figure 4 PON Model Assumptions By installing the PON fiber monitoring solution, network operations is able to monitor, isolate, test, and troubleshoot the entire fiber network. It was used during the construction team during the deployment stage as well as the I&M team for maintenance and troubleshooting. Our model analysis confirms the following savings: Page 6 of 7

7 Impact on Construction Testing 50% saving on F1 construction testing 90% reduction construction failure dispatch rate 70% saving on F2 construction testing Increased construction productivity ratio = 1.75 Deferred Portable Test Tool Costs Construction = $650,000 I&M = $1,400,000 Impact on Installation and Maintenance 10% reduction in cable associated trouble dispatch rate 30% reduction in fiber optic associated video trouble dispatch rate 90% reduction in repeat dispatches 50% savings in MTTR Figure 5 PON Model Savings The PON fiber monitoring solution enables a service provider to provide construction testing of the F1 and F2 portion of the network with only 1 field technician (instead of 2 technicians). As well, the splice and test can be done at the same time instead of taking 2 trips. By troubleshooting the fiber remotely, the fiber monitoring system is able to reduce construction failure dispatch rate by 90%. Construction team productivity rate increased to 1.75 due to lower construction failures and reduced testing time. PON facilities are available sooner for service which increases revenue and improves cash flow. PON fiber monitoring also reduces the No Trouble Found dispatches which are commonplace today. The ability to pinpoint the fault on a detailed local map enables operations to dispatch to fix instead of dispatch to sectionalize and find the fault. This has led to a reduction in the MTTR by over 50%. In addition, the correct work group can be dispatched instead of sending all of them out which reduces the repeat dispatches by 90%. For this network model, we found that a service provider with PON Fiber Monitoring deployed, will be able to reduce their operational costs by $2,589,103 each month (or $31.1 million per year). In addition, there is a savings of $38.4 million on the CAPEX side for the reduction in construction testing and costs. Conclusion The adoption of new technology in carrier networks is driven by simple economics. PON Fiber monitoring enables service providers to reduce CAPEX and OPEX costs by delivering reductions in construction testing, portable testing tools, dispatch rate, and MTTR. This paper reviewed the results of an economic analysis relating to the deployment of fiber monitoring in PON deployments resulting in savings of $31.1 million in OPEX and $38.4 million in CAPEX costs. We also examined how PON remote fiber monitoring has overcome the difficulty in distinguishing between subscribers that are deployed in dense configurations. PON fiber monitoring is more than just technology. It creates a compelling business solution and introduces enormous opportunities for carriers and service providers to improve their financial performance. Page 7 of 7

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