Fiber to the Desk. Where Is It Cost-Effective Today? John Struhar, Chair TIA Fiber Optics LAN Section
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1 Fiber to the Desk Where Is It Cost-Effective Today? John Struhar, Chair TIA Fiber Optics LAN Section BICSI Fall Conference Nashville, Tennessee 20 August 2003 Fiber to the Desk JS Copyright 2003, Telecommunications Industry Association, All rights reserved. 17 November 2003
2 Agenda Fiber to the Desk, Where Is It Cost-Effective Today? Expanded TIA Fiber Optics LAN Section scope Cabling market review & forecast Comparing fiber installed first costs with copper The BICSI survey on 100/1000 Mbps fiber Ethernet The emerging Tri-Speed fiber Ethernet standard 2
3 TIA Fiber Optics LAN Section Background and Mission Formed in 1993 as part of TIA s Fiber Optics Division Members include: 3M, ADC, Berk-Tek, CommScope, Corning, Fluke Networks, Leviton Voice & Data, OFS, Optek Technology, Ortronics, Panduit, Pearson Technologies, Sumitomo Electric Lightwave, Tyco/AMP Electronics Expanded mission: To create a resource where people can learn about the technical advantages and affordability that optical transmission brings to customer-owned owned networks 3
4 Expanded Focus Result of Target Audience & Member Input Fiber-based based LANs Storage area networks Data centers Industrial applications Building automation systems Fiber in security systems Fiber in the home 4
5 TIA Fiber Optics LAN Section Many Resources Available Webcasts Trade press articles White papers Press releases Editor briefings Stimulate complementary standards development Interoperability demonstrations Presentations at industry conferences Enterprise fiber case histories Equipment directories 5
6 Market Trends Copper and Fiber Cable Shipment Forecast* Late 90 s: double digit enterprise cabling growth due to UTP LAN installations in large enterprises : 2002: 20% declines in enterprise cabling market 2003: Flat market with slow recovery late in year Single digit growth for UTP Double digit growth for fiber $Billion Total Cabling System Forecast $(B) *Source: US Building Fiber & Copper Cabling Systems FTM Consulting, February 2003 ftm.consulting@gte.net 6
7 Fiber-Copper Cable Shipments Cable Product Value Shipments Copper 59% $2.6 Billion Fiber 41% Copper cable still dominant Declining market Declining copper cable prices : 2007: Major shift to fiber cable Major fiber applications Gigabit Ethernet Fiber to the zone Fiber to the desk Storage area networks Copper 39% $4.1 Billion Fiber 61% Source: FTM Consulting, ftm.consulting@gte.net 7
8 UTP Copper Selecting the Horizontal Media UTP Copper or Multimode Fiber? Perceived lowest system cost The easy choice Almost universal installer familiarity Smooth Ethernet upgrade path More complex to install & test Susceptible to EMI, RFI & crosstalk Limited cable pull strength 100 meter 1 Gbps Shorter useful life Multimode fiber Higher bandwidth Simplified installation Significantly lower testing costs Lower initial installed costs with centralized architecture Lower life-cycle infrastructure costs Smooth Ethernet upgrade path Immunity to EMI, RFI & crosstalk Superior cable pull strength Perception of complexity Less installer familiarity Electronics still higher priced 8
9 So, Why Not More Fiber? Are Costs Really Higher? Perception: : fiber is still more expensive than copper Reality: : fiber is less expensive in many applications Network lifecycle costs not the primary driver Erroneous assumption: fiber networks should be designed exactly like copper networks Designing fiber networks based upon its capabilities saves thousands of dollars compared to copper 9
10 Comparing Fiber - Copper Costs Tolly Group, August 2000 Several Comprehensive Studies Migrating to Fiber-The Case for Centralized LAN Cabling Still available for download # (page 8) TIA Fiber Optics LAN Section, November 2001 First generation cost model Very popular download from FOLS website TIA Fiber Optics LAN Section, July 2003 Second generation cost model Available for download approximately September 19: Also visit Pearson Technologies web site: 10
11 Second Generation Cost Models Significant Market Changes UTP component prices have decreased Fiber component prices have decreased Fiber transceiver prices have decreased Long wavelength (1300 nm) decreases substantial Short wavelength (850 nm) also decreased Overall network costs have decreased UTP-fiber All fiber 11
12 Installed First Costs Model Assumptions Hierarchical Star UTP vs. Centralized Fiber Building model 8 story, 48 ports/floor Costs calculated on per port basis Port utilization Copper: 70% Fiber: 90% Horizontal subsystem UTP: Cat 5e or Cat 6 UTP Fiber: 62.5 or 50 µm m multimode fiber Riser subsystem Fiber used in riser subsystem (both models) 12
13 Comparing Installed First Costs Loaded labor rate $60.00/hour Additional Assumptions Telecom room construction costs $150.00/ft 2 5 year power costs Lighting, heating & cooling Does not apply to centralized fiber network Estimated at $450 for 5 years Cost models completely interactive 13
14 Telecommunications Room Costs Significantly Less Expensive With Fiber UPS Temperature control Telecom room cost Telecom room size Total cost UTP/Fiber $1,000 $10,000 $9,000 6 x10 $20,000 All Fiber Not required Not required $4,500 6 x5 $4,500 14
15 Multiple Scenarios Examined Second Generation Cost Models 1. SG, list price 2. SG, 80% of list price 3. K Fiber to the zone 5. Tier II electronics, street 6. Tier I electronics, mixed price sources 7. Tier I electronics, reduced cost switch 8. Cat 6 Tier I cable 9. Cat 6 Tier II cable 10. Low cost solution BASE-SX, SX, list price BASE-SX, SX, street price
16 Centralized Fiber Architecture No electronics Designed for fiber (300 meters) Electronics TELECOMMUNICATIONS SPLICE OR ROOM INTERCONNECT HORIZONTAL OUTLET PATCH CORD PC WORK AREA IO H I G H C O U N T R I S E R S SINGLE POINT CROSS CONNECT HOME RUNS HOME RUNS PATCH CORDS ACTIVE EQUIPMENT PATCH CORDS Electronics EQUIPMENT ROOM Standardized in TIA/EIA B.1 & ISO-11801, 2nd Edition 16
17 Scenario 1 SG List Price Desktop to telecom room Fiber in & to telecom room Support costs Materials/Node ($) UTP/fiber All fiber $ $ Labor ($) UTP/fiber All fiber $ $ Equipment room Total cost per port
18 Scenario 2 SG 80% of List Price Desktop to telecom room Fiber in & to telecom room Support costs Materials/Node ($) UTP/fiber All fiber $ $ Labor ($) UTP/fiber All fiber $ $ Equipment room Total cost per port
19 Scenario 5 Tier II Electronics Street Price Desktop to telecom room Fiber in & to telecom room Support costs Materials/Node ($) UTP/fiber All fiber Labor ($) UTP/fiber All fiber Equipment room Total cost per port
20 Scenario 6 Tier I Electronics, Mixed Price Sources Desktop to telecom room Fiber in & to telecom room Support costs Materials/Node ($) UTP/fiber All fiber Labor ($) UTP/fiber All fiber Equipment room Total cost per port
21 Scenario 7 Cisco 2950 with Reduced Cost GbE Switch Materials/Node ($) UTP/fiber All fiber Labor ($) UTP/fiber All fiber Desktop to telecom room Fiber in & to telecom room Support costs Equipment room Total cost per port
22 Scenario 8 Cat 6 Tier I Cable Desktop to telecom room Fiber in & to telecom room Support costs Materials/Node ($) UTP/fiber All fiber Labor ($) UTP/fiber All fiber Equipment room Total cost per port
23 Scenario 9 Cat 6 Reduced Cost Configuration Desktop to telecom room Fiber in & to telecom room Support costs Materials/Node ($) UTP/fiber All fiber Labor ($) UTP/fiber All fiber Equipment room Total cost per port
24 Scenario 10 Low Cost Solution Desktop to telecom room Fiber in & to telecom room Support costs Materials/Node ($) UTP/fiber All fiber Labor ($) UTP/fiber All fiber Equipment room Total cost per port
25 SPLICE OR INTERCONNECT No electronics TELECOMMUNICATIONS ROOM Extended Backbone Extended Backbone Zone Cabling Architecture Expanding Backbone Bandwidth While Integrating Copper Components Electronics ACTIVE EQUIPMENT PATCH CORDS OUTLETS OUTLETS PATCH CORDS PC WORK AREA Electronics L o w ACTIVE EQUIPMENT C O U N T R I S E R S SINGLE POINT CROSS CONNECT HOME RUNS HOME RUNS PATCH CORDS ACTIVE EQUIPMENT PATCH CORDS Electronics EQUIPMENT ROOM Will be standardized in TIA/EIA B.1 & TIA/EIA B 25
26 Zone Cabling with Telecomm Enclosure LEGEND: = Fiber Backbone Cable = Horizontal Cable = Telecommunications Outlet/Connector = Telecomm Enclosure with a switch = Building Pathways and Spaces HC in the TR Fiber Backbone HC = Horizontal Cross-Connect Connect TR = Telecommunications Room Cubicles Offices 26
27 Zone ( Tiny TR ) Telecom Enclosure TIA TR-42.3 Defines telecom enclosure Out for default ballot To be included in 569-B TIA TR-42.1 Defines cabling implementation Balloted in July To be addendum to 568-B.1 Standards Update 27
28 Scenario 4 Fiber to the Zone Desktop to telecom room Fiber in & to telecom room Support costs Materials/Node ($) UTP/fiber All fiber Labor ($) UTP/fiber All fiber Equipment room Total cost per port
29 Scenario 3 K-12 Desktop to telecom room Materials/Node ($) UTP/fiber All fiber $ $54.38 Labor ($) UTP/fiber All fiber $25.03 $35.00 Fiber in & to telecom room Support costs Equipment room Total cost per port
30 Reducing Fiber LAN Electronics Costs TIA/EIA-785 Standard Ratified, May 2001 Low cost, 850 nm LED-based optics 300 meter support Designed for 62.5 or 50 µm m multimode fiber 10/100 auto-negotiation support Parallel detection for interoperability with installed base of 10BASE-FL devices Not intended to replace or be compatible with 100BASE-FX optoelectronics Addendum #1 expected to lower costs further Addendum #1 Released
31 Media converters Install new fiber infrastructure Use legacy electronics until end of useful life Incrementally upgrade to fiber as required Convert point-to to-point links and workstations-to to-hubs/switches NIC cards 100BASE-SX SX Electronics First Dual-Speed Fiber Ethernet Conversion to fiber at the PC New PC card products available 100BASE-SX SX Wall Outlet Media Converter 100BASE-SX SX Fiber PC Card (PCMCIA) 31
32 Scenario BASE-SX SX List Price Desktop to telecom room Fiber in & to telecom room Support costs Materials/Node ($) UTP/fiber All fiber Labor ($) UTP/fiber All fiber Equipment room Total cost per port
33 Scenario BASE-SX SX Street Price Desktop to telecom room Fiber in & to telecom room Support costs Materials/Node ($) UTP/fiber All fiber Labor ($) UTP/fiber All fiber Equipment room Total cost per port
34 Cost Analysis Summary, Part 1 Where Fiber Makes Sense Today Scenario UTP/fiber All Fiber Fiber $ premium/ savings Fiber % premium/ savings (1) SG at list price $ $ $ % (2) SG at 80% list price $ $ $ % (3) K-12K $ $ $ % (4) Fiber to the zone $ $ $ % (5) Tier II electronics, street $ $ $ % (6) Tier I electronics mixed price sources $ $ $ % (7) Tier I electronics reduced cost switch $ $ $ % 34
35 Cost Analysis Summary, Part 2 Where Fiber Makes Sense Today Scenario UTP/fiber All Fiber Fiber $ premium/ savings Fiber % premium/ savings (8) Cat 6 Tier I cable $ $ $ % (9) Cat 6, Tier II cable $ $ $ % (10) Low cost solution $ $ $ % (11) 100BASE-SX SX at list price $ $ $ % (12) 100BASE-SX SX at street price $ $ $ % 35
36 Second generation cost model sample screen 36
37 Developed by Pearson Technologies and the TIA Fiber Optics LAN SectionS Download from & input your own numbers 37
38 Centralized Fiber Cabling Installations Recent Installations Georgia Public Broadcasting Berne University (Switzerland) Tullahoma, TN City Schools Simon & Schuster American Museum of Natural History DreamWorks Studios NASA Goddard Space Flight Center George Washington University Binghamton University Smith Barney New York City Public Schools (199) The Gleason Works J. Paul Getty Center Siemens ICN Ohio Board of Regents Bally s s Las Vegas Metropolitan Nashville Public Schools U.S.A.F. Research Laboratory, Wright Patterson Air Force Base Hilton Hawaiian Village * Various published sources 38
39 Moving Beyond 10/100 Does Need Exist for 100/1000 Standard? TIA FO-4.2 Task Group wanted to know TIA LAN Section/BICSI survey developed Survey conducted 4Q2001 ed to 10,000 BICSI members in 40 countries Total valid responses: 614 (~6%)( Excellent results 100/1000 questions Qualify the respondent Determine need for 100/1000 standard 39
40 Respondent s Job Function Respondent s Job Function We Reached the Experts Designer Project Manager Installer End-user Manufacturer Other 40
41 BICSI Survey Key Question Interest in 100/1000 Mbps Fiber Ethernet? The original Fast Ethernet (100 Mbps) IEEE standard for 100BASE-FX operates at the long (1300 nm) wavelength. However, the vast majority of multimode fiber Gigabit Ethernet electronics being deployed today operates at the more economical short (850 nm) wavelength. There is a wavelength disparity between 100BASE-FX and 1000BASE-SX SX that prevents interoperability. Would your customers be interested in standardized 100/1000 Ethernet optical fiber electronic products that could auto-negotiate (automatically switch up or down) between the two speeds while taking advantage of fiber s extended distance capability? 41
42 BICSI Survey Results Strong Interest Indicated 89% positive response for new standard Yes: 547 No: 67 Clear support for short wavelength (850 nm) 100/1000 standard indicated Testing at ADC determined 10/100/1000 system feasible 67, 11% 547, 89% Yes No 42
43 Tri-Speed Fiber Ethernet Why Do We Need It? A 10/100/1000 Mbps standard would solidify the use of optical fiber for LAN/MAN/WAN applications It would have the same effect as the ANSI/TIA/EIA-568 Category 5 specification had for UTP applications Ethernet deployments are challenging traditional distances Enterprise and carrier customers want it! Fiber solutions that don t require forklift upgrades Network elements that support different Ethernet speeds Rate control without truck rolls Tariffs that will be based on bandwidth allocation 43
44 Ethernet Technology Applications for Multiple FTTx Markets 10/100/1000 Mbps 10/100/1000 Mbps 44
45 FTTx Application 1 Carrier SONET Ring with Optical Service to Customer Most customers are outside of the 100m UTP distance limitation. Optical links using conversion equipment is the only solution that meets the multi speed s requirement. At present only 10/100 Mbps can be supported. Office Building X OADM Office Building Y Main Equipment Room Main Equipment Room Owned by the Carrier UTP Port-n 10/100/1000 Mb/s Intra Building Riser L2 Switch Optical Conv GbE OADM CARRIER PROVIDED SONET OC-48 NETWORK OADM OADM GbE L2 Switch Optical Conv Port-n UTP 10/100/1000 Mb/s Intra Building Riser Multi-Mode or Single Mode Optical Link Optical Conv Optical Conv Multi-Mode or Single Mode Optical Link Cust Equip Located on Floor n of Building X Located on Floor n of Building Y Cust Equip Satellite Equipment Room Courtesy of ADC Satellite Equipment Room 45
46 FTTx Application 2 Carrier Network with Direct Optical Link to Customer Carrier-based Ethernet service using direct optical link from the carrier r C.O. to customer premise GigE is 1/5 to 1/12 the annual cost of SONET services; requires a good fiber infrastructure Central Office Customer Premise UTP Port-n 10/100/1000 Mb/s Intrabuilding riser Multimode or singlemode optical link Main Equipment Room L2 Switch Optical Conv Optical Conv Cust Equip Satellite Equipment Room UTP Port-n 10/100/1000 Mb/s UTP Optical Conv Located on Floor n of Building X Singlemode km 10/100/1000 Mb/s Optical Conv Optical Conv Owned by the Carrier UTP Equipment Room MMF Alternate Method Cust Switch Cust Switch Courtesy of ADC Owned by the Customer Located on Floor n of Building Y Fiber-ready Port (Owned by the Customer) 46
47 Tri-Speed Ethernet TIA PN (TIA-1007 Proposed Standard) 850 nm VCSEL multimode Backward compatibility with 10BASE-FL, 100BASE-SX SX (VCSEL-LED) LED) Long distance, 2 km minimum for 10 or 100 Mbps (VCSEL-VCSEL) VCSEL) m for 10/100/1000 (VCSEL-VCSEL VCSEL) 1310 nm SLED multimode Compatible with 10/100 Mbps only (LED-LED) LED) Reference to IEEE & ISO/IEC ,2 1, FP laser singlemode Reference to IEEE 803.4, Clause nm DFB laser singlemode Reference to IEEE ah, EFM 47
48 Summary Where Is Fiber to the Desk Cost Effective Today? The market outlook for enterprise fiber is excellent Myth: Fiber to the desk is much more expensive than copper Reality: New FOLS cost models show significant FTTD savings FTTD less than UTP copper in all 12 scenarios examined Centralized fiber also offers significant additional advantages Fiber-to to-the-zone saves big & brings fiber closer than hierarchical star Emerging Tri-Speed Ethernet standard will facilitate fiber in the LAN, the MAN, and the WAN TIA Fiber Optics LAN Section provides the information that helps users make educated choices 48
49 49
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