Fiber strategies for ubiquitous ultra-broadband services
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1 Fiber strategies for ubiquitous ultra-broadband services White paper 1 White paper
2 Contents Market imperatives and technology choices 3 Building the business case 6 Helping you build a network for the future 7 Acronyms 9 2 White paper
3 Market imperatives and technology choices According to MuniNetworks.org, there are now more than 500 municipal broadband networks in the United States, many offering their communities broadband speeds up to 1 Gb/s. Cable companies are winning the broadband race in the U.S adding 3.3 million subscribers in 2016 alone, while telephone companies lost ground. Today, regional service providers face a constant threat of new entrants and are under pressure to improve services that keep customers loyal and the barriers to entry high. The challenges are threefold: Selecting the right mix of technologies that get the right services to market at the right time. Making the business case work. Selecting the right partner to support you through design, deployment, activation and beyond. This paper explores each of these areas in turn. Technology considerations If money were no object, and time were not a factor, fiber would be used for every broadband connection. In reality, the economics of serving different groups of users mean that there s no one size fits all ultrabroadband technology. Figure 1. Mix of fiber, DSL, cable and wireless is key to the operator s business case node amplifier curb distribution point antenna building home Given your own set of specific circumstances, you need to evaluate different access technologies and select the best one according to your situation or even select different technologies for different serving areas in your market. This requires careful consideration of several factors including your existing infrastructure, the density of households in your serving area, the broadband speeds that are needed, the time it takes to provide new services, and the costs. Balancing these considerations can be summed up as fiber-to-the-mosteconomical-point, or $. Let s explain that a little. Given that fiber to every home and business is the desired end goal but not always feasible in the shortterm, $ is about extending fiber infrastructure to the deepest point in the network that makes the most business sense. 3 White paper
4 In some cases, that point will be fiber all the way to the business or home. In others, it will be close enough to then use the copper or cable local loop, or a wireless technology, to complete the connection to the customer and still provide ultra-broadband services. The precise point is determined by the economics of your business case. Technology options The technologies currently available are described in the following sections. For each, there is a classic trade-off between cost, time to deploy the technology and begin generating revenues, and quality (in this case, the quality of the service provided to customers, generally in terms of broadband speeds). Figure 2. x technology comparison NGPON2 Fiber Aggregate speed ~2-20 Gb/s G.Fast <800 ft. ~0.5-1 Gb/s 5GTTH <1.5 kft. ~2 Gb/s Vectored VDSL2 <2 kft. ~ Mb/s VDSL2 <7 kft. copper ~20-50 Mb/s vccap Coax ~.5-2 Gb/s LTETTH <20 kft. ~ Mb/s Gigabit passive optical network Gigabit passive optical network (GPON) is the most common fiber-to-the-home technology in the world today. Many operators use GPON to provide residential services of 1 Gb/s as well as business services, mobile backhaul and remote node backhaul for x micro-nodes. Initial capital expenditure is generally higher than other technologies, but there is a strong return on investment given the longevity of fiber and the potentially unlimited capacity for future services. Next-generation passive optical network Operators can easily upgrade existing GPON networks to support next-generation passive optical network (NG-PON2) technology. NG-PON2 enables you to increase the capacity in increments of 10 Gb/s, driving increased utility with these higher speeds. XGS-PON provides a cost-effective option supporting 10/10G and 10/2.5G bit rates with fixed wavelength optics. TWDM-PON provides four or more wavelengths per fiber, each capable of delivering symmetrical or asymmetrical bit rates of 2.5 Gb/s or 10 Gb/s. Nokia s unique universal NG-PON solution supports a smooth migration from GPON to XGS-PON and ultimately to TWDM-PON. 4 White paper
5 G.fast G.fast is a flexible technology that delivers aggregate rates of 1 Gb/s over a distance of 160 feet of copper plant and as much as 300 Mb/s at 1,000 feet. A new amendment to the G.fast standard will increase usable spectrum of G.fast to 212 MHz to deliver symmetric gigabit speeds. G.fast is a valuable tool in any fiber operator s toolkit to ensure that high-speed services can be delivered to subscriber locations that are impractical for fiber. For example, fiber can be drawn to the basement of an apartment block or front door of a home and G.fast used over the existing in-building copper or coax cabling. VDSL2 vectoring VDSL2 is commonly deployed in fiber-to-the-node and fiber-to-the-curb architectures. With the VDSL2 17a profile, downstream speeds of 100 Mb/s can be delivered on copper loops of 2,000 feet or more. Nokia leads the world in VDSL2, and our VDSL2 vectoring solutions are a relatively quick and cost-effective way of providing ultra-broadband services over existing copper infrastructure. Cable Most cable operators also consider H as the ultimate end-goal, but the same strategy of drawing fiber closer to customers can still be used to increase the bitrate-per-user. Upgrades to existing hybrid fiber-coaxial (HFC) networks can be facilitated with Nokia s unified cable access solution which overcomes bandwidth constraints by virtualizing the CCAP (headend equipment), eliminating costly analog optics, and extending IP closer to the customer. With DOCSIS provisioning of EPON (DPoE ) you can deploy fiber networks while managing the Optical Network Unit (ONU) as you would a cable modem. Cable networks still suffer from constrained upstream speeds. The industry is working on overcoming this challenge. In 2016, Nokia Bell labs demonstrated 10 Gb/s symmetrical speeds over coax using XG-CABLE, proving the concepts of CableLabs Full Duplex DOCSIS 3.1 proposal. Fixed-wireless The latest 4G LTE and future 5G mobile technologies can be attractive options in hard-to-serve areas. Nokia s fastmile fixed-wireless solution uses existing LTE infrastructure to provide speeds up to 100 Mb/s to residences. Fixed-wireless access using 5G technology is a hot topic today as many operators consider it a low-cost alternative to traditional fixed networks. When available, 5G will provide yet another option for delivering services. However, 5G will rely heavily on fixed fiber networks for mobile backhaul and fronthaul. Hybrid access For rural areas where existing DSL is not providing enough throughput, it can be combined with existing LTE coverage for a hybrid access solution that increases speed and stability. This technology will be a useful tool for operators that struggle to increase the capacity of their rural networks. Need for scale To bring more bandwidth to more people, you need to consider solutions that work together and can scale from dense urban areas to very rural. For example, Nokia s Intelligent Service Access Management (ISAM) portfolio allows different x technologies to sit side-by-side on the same network. Nokia s highly flexible micro-nodes let you deliver ultra-broadband services from telephone poles, manholes, walls and basements. Speed, flexibility and reliability are increased with pre-assembled and tested micro-nodes and Zero Touch Provisioning for easy turn-up of services. 5 White paper
6 In terms of maximizing the lifetime value of your network, the adoption of open and standardized management models and a persistent network representation in the cloud can eliminate complexity while managing large numbers of micro-nodes (whether on- or off-line). As standardization and innovation continue to evolve, Nokia can help you tackle the challenges of network densification, reverse power feeding and the introduction of SDN/NFV. Building the business case The different costs associated with different ultra-broadband technologies must be carefully weighed up against the revenues that they bring and the speed at which those revenues can be realized. In this section, we look at the cost and time-to-market considerations in building your ultra-broadband strategy. Capital expenditure CAPEX is a critical consideration for any operator. Our $ strategy recognizes that. Rather than embracing one technology, we lead the market in providing a full suite of access technologies. This enables us to partner with you to objectively determine the best technology for you without privileging any particular one. The CAPEX modelling shown in this section is the result of detailed analysis by Nokia Bell Labs based on years of consultation with operators large and small. Bell Labs Consulting provides a service to create detailed and personalized business modelling for individual operators. Figure 3. CAPEX comparison of various access technologies at different subscriber densities ADSL C.O. N VDSL2 -Curb VDSL2 -Building G.fast dp G.fast H GPON XGS PON Civil works and cables Network electronics amd optics Cabinets/POPs/splitters Home equipment Home connect and install Figure 3 shows the CAPEX spend per subscriber for a wide range of deployment models on a relative cost scale. Based on the assumption that all homes and businesses have an existing copper twisted pair connection, we use Asymmetric Digital Subscriber Line (ADSL) from the central office with no fiber investment as a cost baseline. All other technologies are then compared to that baseline. By far the most costly aspect of any deployment are the civil works to lay the fiber. Home equipment and installation also represent a significant factor for fiber connections. Network elements, electronics and optics are an important cost contributor in fixed-wireless connectivity. 6 White paper
7 CAPEX per subscriber is highly sensitive to subscriber density, measured in households per square kilometer (HH/km 2 ). As density falls, CAPEX per subscriber rises, illustrating the challenges of serving low density areas. Operational expenditure OPEX is a constant challenge for every operator, representing a significant expense that can take years to show its cumulative effect. One of the clear benefits of H is that it has by far the lowest operational costs of any access technology. This is because passive optical network (PON) architectures use all-passive outside plant components resulting in very low maintenance requirements. The Optical Line Terminal (OLT) access node located in the central office shares each fiber connection over a number of subscribers, consuming little power in comparison to other technologies. Time-to-market A final consideration should be given to time-to-market (TTM). This can be critical in a competitive environment. Sometimes an access solution can be worth the wait, both for the end-user and the operator; for example, H with its unlimited bandwidth and future-proof potential. That is, unless a community broadband project or alternative operator sniffs a chance to provide it first. You need to consider both how long your customers will wait and how fast competitors can react to an opportunity. No H network can be built overnight, so Nokia has devised technology migration strategies that drive increased revenues today and finance longer-term H deployments. For example, difficult to reach areas can be connected with fixed-wireless or x to deliver increased broadband speeds quickly. This secures your subscriber base and immediately increases average revenue per user (ARPU). These revenues finance the upgrade to fiber at a later date. Helping you build a network for the future So far we have examined the different technologies available to provide ultra-broadband. We also looked at the business case, including costs and the importance of time-to-market; getting services in place quickly to pre-empt the competition and secure subscribers. But then what? Your investment in ultra-broadband services needs to last well into the future. Fiber infrastructure is futureproof, of course, but the choice of x or H technology might have limitations in terms of electronics and optics. From the outset, it s important to have the vision for how you will take the network to the next level when the time is right. Nokia has been partnering with regional broadband operators since the introduction of ADSL in Broadband networks have evolved significantly since that time and Nokia has led the way with innovations in DSL, fiber and wireless technologies. We are committed to helping you for the long-haul. We are the only vendor in North America that is technology-agnostic, so we can advise on and support the evolution of your network right the way from DSL, to next-generation fixed and wireless technologies, and beyond. 7 White paper
8 A trusted partner Nokia is a worldwide leader in fixed broadband technology. Our solutions power the fastest and bestperforming telecom networks in the world, both small and large. In fact, Nokia has delivered more than 90 million fixed broadband lines in North America, far more than any other supplier (Figure 5). With more than 450 customers worldwide, we are the only broadband technology vendor with a leading position in every region of the planet. 18 of the 20 biggest network operators trust us for their broadband networks, including AT&T, Verizon, Telefónica, BT, Vodafone, Orange, China Telecom, and Deutsche Telekom. But we re also trusted by regional providers and community-based operators. Many municipalities, utility companies and local service providers across the Americas, Europe and Asia continue to partner with Nokia to make fixed and wireless ultra-broadband a reality. The first residential gigabit service offering in the US, Chattanooga s Gig City, relies on Nokia s solutions, as do LUS Fiber, Bristol Tennessee, Frontier Communications, the City of Opelika, and many others. A history of innovation We ve earned this trust over a 150-year period that combines the heritage of Nokia, Alcatel, Lucent and Bell Labs. We create the technology that connects the world and our innovations span the history of communications. We invented telephony, lasers, transistors, and mobile phones, the ingredients of today s intelligent, secure, and reliable communications networks. Our inventions and solutions connect people and organizations across the planet, over land, under sea and through the air. We are a truly global company but always close to our customers. We have a local presence in more than 100 countries, and we are here to stay. Figure 5. Nokia fixed and wireless public references AT&T More than 90 million fixed broadband lines shipped in NAR 8 White paper
9 We create the technology that connects the world Our technological breakthroughs have been honored with 8 Nobel Prizes, 4 Turing Prizes, 2 Grammys, 1 Emmy and an Oscar, among many other awards. Our broadband solutions regularly earn the industry s highest accolades and Nokia owns more than 15,000 patents, including almost 3,000 for fixed broadband technology. But more important than these awards are the opportunities we create when we put our technology to work. Our mission in fixed broadband is to provide more bandwidth to more people, wherever they are. We want connections to be seamless, secure, from any device and any kind of network. We do this by providing lightning-fast, wireless and fixed broadband access, backed by our high-performance IP networking expertise. Working with you Our team, our experience, our innovations, and all our technology are at your service. We work with you as a partner, going the extra mile to bring our global expertise to the local communities you serve. As one Nokia, we are committed to serving the needs of all communication service providers, large and small. We listen to you, and we are committed to finding the right approach to bring ultra-broadband to your citizens and enterprises in the most effective and efficient way. Our solutions and professional services allow you to deliver the ultra-broadband services your customers want and keep your competitors at bay. We can help you design, plan and deploy services that are right for your business strategy, right for your customers, and will deliver reliable value for years to come. Acronyms 5GTTH ARPU DOCSIS DSL EPON $ B dp H fd x HFC NFV NG-PON 5G-to-the-home Average revenue per user Data Over Cable Service Interface Specification Digital subscriber line Ethernet PON Fiber-to-the-most-economical-point Fiber-to-the-building Fiber-to-the-distribution point Fiber-to-the-home Fiber-to-the-front door Generic for several different configurations of fiber deployment Hybrid fiber-coaxial Network function virtualization Next-generation PON 9 White paper
10 OLT Optical Line Terminal PON Passive optical networks SDN Software-defined networking TTM Time-to-market TWDM-PON Time and wavelength division multiplexing PON VDSL2 Very-high-bit-rate digital subscriber line 2 XGS-PON 10G symmetrical PON Nokia is a registered trademark of Nokia Corporation. Other product and company names mentioned herein may be trademarks or trade names of their respective owners. Nokia Oyj Karaportti 3 FI Espoo Finland Tel (0) Product code: SR EN (October) 2017 Nokia nokia.com
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