Huawei Technologies
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1 Huawei Technologies
2 Main Topic Main Topic National broadband initiatives are blooming across the globe and transforming the telecom landscape. In this context, a successful national broadband strategy requires a mature ecosystem for future development and a strong input from government. National broadband is on the way By Chen Feng & Xu Hong South Korea takes the lead Imagine a pleasant stress-free Sunday. Jun-Ki is relaxing at home in front of IPTV, his thoughts a million miles away from the office. An onscreen video message pops up on his laptop an invitation from his friend to join the online role-playing game (RPG) they both like playing. He accepts and spends a couple of hours gaming before going to meet his girlfriend, who he promised to take to see the new romantic comedy. He uses his RFID card to pay for his subway fare and, once seated, updates his Internet blog and watches the news on his phone to use up the dead time on the way to downtown Seoul. Broadband continues to add value to the lives of millions in South Korea. Strategy Analytics revealed that South Korea s broadband penetration rate led the world in The widespread application of FTTH and FTTB provides South Koreans with speeds of between 50 and 100Mbps and, notably, FTTH serves over 30% of all domestic broadband users, compared with just 2.3% in the United States by early South Korea is home to a remarkable 30% of the world s Wi- Fi hot spots, and 3G phones, PDAs, and wireless laptops are mainstream tools amongst its population of 48 million. The broad acceptance of broadband is paying economic dividends too in 2008 ICT accounted for 17% of Korea s GDP and 40% of its exports. T h i s s u c c e s s i s a t t r i b u t a b l e t o a c o n s i s t e n t d e v e l o p m e n t a n d implementation strategy. Continual investment in South Korea s national broadband initiative has been invaluable in deepening broadband penetration and, with close links to economic and industrial policies, is continuing to help maximize South Korea s competitiveness. In 1987, the South Korean government emerged as the first in the world to establish a national policy to promote ICT in the public and private sectors, and created the National Information 17
3 Huawei Communicate Society Agency (NIA) to manage highspeed network construction. In 1994, the NIA went on to establish the Korea Information Infrastructure (KII) initiative, which covered a series of 5-year ICT plans, examples include e-korea Vision 2006, Broadband Convergence Network (BcN), and the u-korea Master Plan. I n Fe b r u a r y , t h e Ko r e a n Broadband Plan was launched to improve the country s ICT infrastructure by Aiming to provide minimum wired access at 1Gbps and wireless access at 10Mbps, the plan is expected to create 120,000 jobs. Trends and features National broadband initiatives have been taking shape around the world. Australia announced its national broadband network (NBN) scheme, which aims to provide 90% of Australian homes and businesses with download speeds reaching 100Mbps. 7.2 billion USD has been earmarked for the broadband component of the US stimulus package, Singapore has launched its 10-year Intelligent Nation 2015 (in2015) plan, Malaysia is implementing its high-speed broadband program, and Japan s Next- Generation Broadband Strategy 2010 is underway. Frost & Sullivan forecasts that the broadband subscriber base in the Asia Pacific region will grow at a CAGR of 14.1% between 2009 and 2014, at which point it will have reached million subscribers. While the schedules and technical details of these national broadband initiatives vary, they have four features in common: ultra-high capacity, openness, convergence, and eco-friendly. Ultra-broadband A national broadband initiative utilizes several transformation catalysts to support more powerful applications. The major targets are to accelerate data transfers, achieve real-time collaboration, and simultaneously use multiple applications. A national broadband initiative has to satisfy bandwidth-hungry applications, 18
4 Main Topic National broadband is on the way s u c h a s v i d e o c o n f e r e n c e s, h o m e surveillance, streaming video, and HDTV. Based on similar projects around the world, Huawei s research indicates that 30 to 100Mbps is the inevitable shortterm minimum range. Singapore s in2015 project, for example, requires 100Mbps downlink and 50Mbps uplink speeds in The main technologies underpinning in2015 and the growth of Singapore s future bandwidth demands are FTTH and GPON. in2015 aims to increase uplink speeds as applications such as video sharing become more popular and continue to devour bandwidth. By June 2009, Nucleus Connect, a subsidiary owned by StarHub under the in2015 banner, had begun deploying GPON equipment for residential access and a GPON/pointto-point Ethernet mix for commercial buildings. Two speed options are initially planned: 100Mbps downlink/50mbps uplink or 1Gbps downlink/500mbps u p l i n k f o r residential c u s t o m e r s ; symmetrical 1Gbps or symmetrical 100Mbps access lines for enterprise users. In a d d i t i o n t o F T T H, i N incorporates a national Wi-Fi network that has been up and running for over a year and that, by June 2009, boasted more than 7,550 hotspots for providing free, islandwide coverage in public areas. Openness A national broadband initiative needs an open network architecture and business model. For example, Australia plans to spend 43 billion USD to create a fiber optic network over the next 7 to 8 years to cover its regional and capital cities. This NBN will operate on a structural separation model in which a single wholesaler will provide broadband connections to retail operators. The structural separation model allows broadband retailers to supply their services to more regions at faster speeds based on an open NBN that facilitates fair access. Competition is based on the wholesale price, and this will encourage service providers to raise their game in order to attract customers. Tasmania rolled out its NBN in July 2009, the first stage of which will provide an open access broadband network for wholesale in 2Q 2010, which will serve local customers and act as a reference point for the larger network in Australia. Convergence National broadband initiatives must host complex networking scenarios that facilitate convergence, layered QoS capabilities, and varied service level agreements (SLAs). Examples include the coexistence of IP and legacy TDM/ATM services; a rich mix of voice, data and video content; and diverse access methods for both wireline and wireless technologies over a single network. South Korea s BcN, for example, aims to develop a next generation network in three stages. The first involved formulating n e t w o rk p l a n s a n d s t a n d a rd s a n d constructing a pilot network during 2004 and The BcN was then expanded during the second stage in 2006 and 2007 to provide commercial services and access 5 million houses with FTTH access. The final stage, which began in 2008 and will be completed in 2010, covers nationwide deployment and the FTTH connection of 10 million homes. The government is giving legal and administrative help with issues such as standards and funding research. The telecom industry is constructing the BcN with its own investment contribution and through developing and providing services. Subscribers will be able to access the completed network through various home Intranets and terminals for guaranteed broadband services anytime and anywhere. The network will also provide open APIs to third-party developers thanks to a range of QoS, security, and IPv6 policies. Eco-friendly As massive-scale investment and infrastructure projects, national broadband initiatives inevitably need a robust environmental plan, including the application of clean energy sources and energy-efficient technologies, and the reuse of existing network equipment and site facilities. Building the eco-system Public and private sector collaboration is essential for national broadband success, given the variety of stakeholders that span government, operators, vendors, and SPs. Network planning, implementation, and operation require a complete and mature eco-system. The vital role of government Governments enable national broadband development by formulating strategies and policies, issuing mandates, and giving administrative guidance to broadband providers. They also need to encourage broadband deployment in rural areas and offer low-cost loans, grants, and tax incentives. Beginning in the mid-80s, the South Korean government has adopted an exemplary long-sighted approach. This has culminated in a national high-speed backbone network, and a wealth of R&D, IT projects, and ICT applications. It also pushed for extremely low prices for the public sector and free Internet access for schools; doing so has brought the information age quickly into the public realm and enhanced IT education, which further stimulates demand and encourages SPs to drop their prices. Operators as key partners Practice has shown that operators are a major force in implementing the national broadband initiative, helping governments draft initiative blueprints, investing in line with government policy, maintaining networks, and delivering services. Operators have been given full play of their roles in in2015, the backbone of which is the NGN broadband network. This NGNBN is broken into three conceptual layers: Layer 1 is made up of network company (NetCo) responsible for the passive NGNBN infrastructure, for example, ducts and wirelines. Layer 2 consists of operating company (OpCo) who focuses on NGNBN active infrastructure such as switches and transmission equipment. Layer 3 comprises retail service provider (RSP) responsible for designing, 19
5 Huawei Communicate building and operating network entities, including servers and CPEs. The in2015 has one NetCo, who operates in open access and wholesales wirelines to several OpCos. These OpCos then wholesale services and bandwidth to RSPs, who compete with each other through their service portfolios. The OpenNet consortium, in which SingTel has a 30% stake, won the NetCo bid. OpenNet has allocated 2 billion USD to the NGNBN project including 700 million USD for infrastructure construction, with the government putting up an additional 516 million USD. Nucleus Connect won the OpCo bid, and is set to enjoy a boost from StarHub s planned investment of 66 million USD, which will help purchase a quartercentury license at 664 million USD. The government is supporting Nucleus Connect and the project with a further 166 million USD. Third parties support Third parties generally comprise equipment vendors, CPs, and SPs. All of whom are invaluable given that network equipment, Internet applications, and telecom services form elements of national broadband projects. Vendors are key providers of broadband equipment, including Huawei, who is currently partnering with Etisalat to deploy GPON equipment and an optical distribution network (ODN) on Al Reem Island, which lies 600m off the Abu Dhabi coast. In September 2009, Nucleus Connect selected Huawei to deliver the end-to-end solution that will power Singapore s NGNBN project. Based on its specialist teams and rich experience, Huawei is ready to provide strong and tailored service support to help operators across the globe realize their national broadband visions. Editor: Michael huangzhuojian@huawei.com Public and private sector collaboration is essential for national broadband success, given the variety of stakeholders that span government, operators, vendors, and SPs. Network planning, implementation, and operation require a complete and mature eco-system. 20
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