Sharing HKBN s s experience of developing a future-proof NGN architecture
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1 Sharing HKBN s s experience of developing a future-proof NGN architecture Next Generation Networks 11 April 2008 Sheraton Shanghai Daniel Lo Head of Next Generation Network Development
2 Disclaimer This presentation contains forward-looking statements and information that involve risks, uncertainties and assumptions. Forward-looking statements are all statements that concern plans, objectives, goals, strategies, future events or performance and underlying assumptions and other statements that are other than statements of historical fact, including, but not limited to, those that are identified by the use of words such as "anticipates,'' "believes,'' "estimates,'' "expects,'' "intends,'' "plans,'' "predicts,'' "projects'' and similar expressions. Risks and uncertainties that could affect us include, without limitation: changes in technology; changes in the regulatory environment in which we operate, or changes in the rules and polices that government regulators apply to our businesses; increased competition in the local or international telecommunications, Internet access or pay-tv markets; the benefits we expect to receive from our continuing capital expenditure on our network; our ability to both maintain growth and successfully introduce new products and services; and the continued development and stability of the technological infrastructure we use to provide our telecommunications and Internet services. Should one or more of such risks and uncertainties materialize, or should any underlying assumption prove incorrect, actual outcomes may vary materially from those indicated in the applicable forwardlooking statements. Any forward-looking statement or information contained in this presentation speaks only as of the date the statement was made. We are not required to update any such statement or information to either reflect events or circumstances that occur after the date the statement or information is made or to account for unanticipated events.
3 Profit from Differentiation
4 Operating Structure City Telecom (HK) Limited Listed Parent Company (CTEL) 100% 100% Hong Kong Broadband Ltd Main operating entity for Fixed Telecoms Network Services SGNB Singapore Broadband Network Pte Limited Bidder for Singapore License
5 Triple Play Services on NGN Platform IPTV Broadband Access Fixed Telephony
6 2 nd Global Highest in FTTH / FTTB Penetration
7 Ultra Condensed Population Population Density (Population / km 2 ) Hong Kong = 6,407 (World rank #3) UK = 246 (World rank #48) People s Republic of China = 137 (World rank #75) Shanghai = 2,657 Hong Kong Shanghai
8 Reverse Digital Gap In Hong Kong, HKBN has created a Reverse Digital Gap whereby the mass residential market on HKBN s network coverage now enjoys superior value and choice (25Mbps Mbps) for broadband services 8
9 Profit.It.It s s all about Bandwidth
10 NGN In-building Blockwiring <100 meters of Category 5e Copper Wiring LAN Switches within 100m of end users Fiber-To-The-Building
11 Municipal FTTx Networks TD M E1 Circuit Emulation S TB 1000M IP T V V o IP B ro ad b an d 1 00M 1 0 M N * 10G E /G E N * 10G E/G E ONS Cisco IP+O ptical Network N * 10 G D W D M /R O A D M N * 10G E/G E IP Multicast Video Servers N * 10G E/G E
12 Comparison of FTTB and FTTH Broadband Access Fibre Optics of HKBN Fibre Optics of Reseller Main Telecom and Broadcasting Equipment (TBE) Room Trench Route (35m) Trunk Route Trench Route (100 m) Trunk Route 07
13 Telecom Facilities of Resellers inside building 08
14 Unbundled Interconnection of Resellers and Incumbent 09
15 Inter-building Fibre Connection Main Telecom and Broadcasting Equipment (TBE) Room 10
16 In-building FTTH Connection Drop-in fibre in concealed conduit Fibre box in typical floors 12/F 4/F G/F Lift Lobby Fibre Cable To Central Office 11 Fibre Distribution Frame in Telecom Facility Room
17 1 million households within 32 months 1 million household within 32 months from award of license 1,200 1, Feb-00 Nov-00 Sep-01 Jul-02
18 Over 650,000 Subscribers 1.4 million Households SS7 PSTN Video Content Video SVR V Voice Catalyst 6500 Internet Access Video Catalyst 6500 Catalyst 2950/3500 Catalyst 2950/3500
19 Everything-over-NGN Platform VoIP Class 5 Switch PSTN PSTN VoIP Gateway TDM Ethernet Ethernet Internet Internet HKBN HKBN IMS IMS Platform Platform Ethernet Ethernet or Set Top Box MPEG-2 Encoder
20 Plug and Pay Service Access Standard RJ45 Ethernet Jack for 25/100/200/1000 Mbps access Standard RJ11 Phone Jack VoIP access Set-Top-Box Converter for IP-TV access
21 Unmatched Symmetric Bandwidth Advantage 10Mbps service for new customers terminated from September 2007
22 GPON Deployment Future of FTTH Res. Bldg User User User User User 1.2Gbps TBE Room User Optical Line Terminal (OLT) User 2.5Gbps To Switch 1x32 Splitter Fibre Ring 1.2Gbps 2.5Gbps Outdoor Kiosk User User House Optical Line Terminal (OLT) Fibre Hub Enhancement of FTTH coverage in both high-rise and low-dense buildings 1x32 splitter User 14
23 High Brand Awareness
24 Network Differentiation Campaign
25 World Leader in Value for Money Broadband Services 25
26 Increasing BN ARPU & Reducing Churn - ARPU increased over 60% in 18 months, while the churn rate reduced from 1.4% to 0.6% Blended Average Aug-05 Feb-06 Aug-06 Feb-07 Aug-07 26
27 High Bandwidth Enables NGN Development; NGN Enables Innovative Applications
28 10 Second Movie Download
29 Reverse Asymmetric Bandwidth Demand Upstream traffic is 3 times of downstream traffic Innovative applications rely on high upstream speed *Weekly statistics from HKBN 29
30 Increasing High Bandwidth Demand QQ Handset Photo facebook Video Blogs (VBlogs) Digital Camera High Definition Video
31 bbdrive online backup Backup your files Share video/ pictures with your friends 1Gbps symmetric bandwidth empowers you to access the files to bbdrive as easily as your local drive 31
32 bbtv - Interactivity features Interactive Education Content - like Times College (會考無難度), Kwik Maths (速 算速訣), Idea Impulse (精彩e世代), etc.
33 Face-to-face Customer Experience
34 HKBN believe High Bandwidth like Prada & Louis Vuitton to Ladies; Porsche & Rolex to Men.nothing special but differentiation from competitors
35 Presentation End
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