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Next Generation Access: 10G PON & Phantom Mode The Evolution Towards Ultra-Broadband Sanjay S. Patel CTO, Wireline Division Alcatel-Lucent Alcatel-Lucent Internal

How much bandwidth do you need? Long term Bandwidth trends Homes are growing 100 Gb/s 10 Gb/s 1 Gb/s 100 Mb/s 10 Mb/s Source: Speedtest 2010, Heavy Reading 2010, Alcatel-Lucent NTT Zon HK BB Chattanooga Verizon NTT Peak capability of PON technology S.Korea Google EU avg. DS speed EC Dig. Agenda Video conf. Video telephony Peer to peer Mobile Internet HDTV Online gaming SDTV 2000 2005 2010 2015 2020 2025 3D HDTV Hosted applications Plenty of bandwidth in standardized TDM PON technologies Concurrency of residential services will drive 100+Mbps connectivity 2 Sanjay CeBit 2011

What is next in fiber? NG never happens at once Gradual introduction when it is needed to meet certain market needs GPON still has plenty of bandwidth First applications: Backhaul of huge MDUs Top-end customers Business users 10G GPON (XG-PON1) PON Ports (in millions) 30 25 20 15 10 5 0 PON and 10G PON market forecast EPON GPON 10G EPON 10G GPON CY07 CY08 CY09 CY10 CY11 CY12 CY13 CY14 Source: Infonetics, 3Q 2010 4 times more bandwidth (10G DS/2.5G US) Graceful migration: coexistence with current GPON No impact on OSP, including fiber and splitters Most economically viable path GPON 10G GPON GPON 10G GPON Market research confirms that most GPON operators consider 10G GPON as the next step 3 Sanjay CeBit 2011

Alcatel-Lucent Technology Leadership (Fiber) Fiber to the Home Council Innovation Award (2010) Symmetric 10G PON (10G DS/10G US, XG-PON2) field trial with Verizon (2010) Market leadership through innovation 4 Sanjay CeBit 2011

Alcatel-Lucent Product Leadership (Fiber) NEW NEW 10G XG-PON1 line card NEW ISAM FX-16 ISAM FD-16 NEW ISAM FX-8 ISAM FD-8 ISAM FD-2 ISAM FX-4 New in our ISAM access node: First 10G GPON line card on market Available on existing ISAM FD shelves (ETSI) Available on new, market-leading 2x100G high-capacity ISAM FX shelves (all markets) 5 Sanjay CeBit 2011

Alcatel-Lucent VDSL2 deployments and trials at&t 6 Sanjay CeBit 2011 60+ 30+ VDSL2 projects VDSL2 roll-outs 30+ VDSL2 trials ILECS CLECS Alcatel-Lucent VDSL2 rolled out by 30+ ILECs and CLECs worldwide Renewed interest in VDLS2: 30+ trials started in 2009

Belgacom s main deployment model: VDSL2/FTTN 7356 REM 48p config 7356 REM 96p config Deploying 15,000 cabinets with 7356 ISAM FTTB REM 7 Sanjay CeBit 2011

Telecom Austria: VDSL2 from CO 8 Sanjay CeBit 2011

Bonding doubles the bit rate (2 pairs) or extends the reach Double the bitrate at the same reach ISAM Line Length Pairs Upstream Downstream VDSL2 bonding trial 1 - APAC tier 1 operator Sub #1 1,800m 2 4.1Mbps 26Mbps Sub #2 1,560m 2 4.8Mbps 46Mbps Sub #3 1,510m 2 4.8Mbps 44Mbps Extend reach, for same bitrate VDSL2 bonding trial 2 - APAC tier 1 operator Sub #1 400m 2 33.6Mbps 97.4Mbps Sub #2 400m 2 30.6Mbps 70.6Mbps ISAM Sub #3 1,000m 2 18.4Mbps 68.2Mbps 48p VDSL2 LT 7130 RG 600V VDSL2/ADSL2+ bonded CPE First on market with bonding solution (LTs + CPEs) - Successful field trials completed Nov 2009 9 Sanjay CeBit 2011

Focus on at&t VDSL2 + Bonded VDSL2 delivers bandwidth VDSL2 delivers 37Mbps @ 2000ft Bonded VDSL2 delivers 37Mbps @ 3000ft Source: at&t 10 Sanjay CeBit 2011

Squeezing the copper further: VDSL2 Vectoring 80 VDSL2 lines in 300-pair binder results from a research collaboration of Alcatel-Lucent with Swisscom Labs all lines vectored 50% lines vectored no vectoring Crosstalk = dominant disturber for VDSL2 VDSL Vectoring = Noise Cancellation measure crosstalk from each line into all other lines in binder cancel the noise with an anti-phase signal Downstream bit ra ate [Mb/s] Loop length [m] Vectoring cancels noise (lab proven) - potential for very significant bit rate increase Field trials starting in 2010 11 Sanjay CeBit 2011

Vectoring results Swisscom lab Bit rate [Mb/s] 80 Single Line Vectoring No vectoring 70 60 50 40 30 Single Line Vectoring No vectoring (minimum) Downstream +150% 20 10 downstream 0 30 25 20 15 10 5 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 12 Sanjay CeBit 2011 upstream (minimum) Upstream +130% Swisscom lab tests 400p cable consisting of 4 binders of 100 pairs each paper insulated, 0.4 mm, 500m 24 VDSL2 in same binder no alien crosstalk Vectoring realizes significant bit rate gains, and reduces the spread between lines All lines within 95% of single-line performance

Vectoring results P&TLux field trial Bit rate [Mb/s] Single line Vectoring No vectoring 70 60 50 40 Downstream +90% 30 20 10 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 mix of 529m, 567m and 613m length VDSL2 lines Vectoring bit rates at 95% of single line performance in field 13 Sanjay CeBit 2011

300Mbps over 2 pairs @ 400m Bell Labs Phantom mode innovative demo 300Mbps in 5 steps Start with a 1st twisted pair good for about 100Mbps. 1 Add a 2 nd twisted pair good for another 80Mbps. Bit rate on pair 1 drops due to Xtalk from pair 2. Create a 3 rd virtual pair or phantom mode pair another 50Mbps. BUT: bit rates on pairs 1 & 2 drop due to Xtalk from phantom pair. Apply vectoring (crosstalk cancelation) to boost bit rate by approx 50%. 400m quad pair 0.6mm Bond the 3 links (2 physical pairs + phantom mode) creating one big 300Mbps pipe. Downstream bit rate (Mbps) 2 350 300 250 200 150 100 50 0 Bonded Phantom Mode Line 2 Line 1 1 4 3 4 3 5 2 First line + 2nd line +Phantom Mode +Vectoring +Bonding 5 Industry-first demonstration of 300Mbps@400m over 2 pairs Innovative combination of phantom mode + vectoring 14 Sanjay CeBit 2011

Phantom 2 910 Mbps over 4 pairs @ 400m 1 2 3 4 physical pairs +2 phantom modes +1 phantom-on-phantom mode 1000 900 800 700 600 500 400 300 200 100 0 1 Phantom-on-Phantom 3 2 Phantom Mode 2 Phantom Mode 1 Line 4 Line 3 Line 2 Line 1 Physical Pairs + Phantom Modes +Phantom-on-Phantom 910 Mbps @ 400m using 4 pairs - for business services and mobile backhaul 15 Sanjay CeBit 2011

Phantom results P&TLux field tests Bit rate [Mb/s] 70 Vectoring No vectoring 60 50 40 30 20 10 0 1 2 3 4 5 6 7 8 9 twisted pair Phantom mode subscriber 1 (613m) subscriber 2 (529m) subscriber 3 (529m) Phantom mode transmission on 2 pairs gives 2.5 rate of single pair 16 Sanjay CeBit 2011

The Alcatel-Lucent ISAM family Allowing fiber network build-out while leveraging existing copper assets One ISAM family ISAM FX-16/8/4 High-bandwidth ISAM shelves ISAM FD-16 ISAM FD-8 ISAM FD-2 7357 SEM 7352 ONT ONT and CPE DSL and fiber DSL and fiber DSL and fiber VDSL2 VDSL2 family One management solution (5520 AMS) 7342 ISAM FTTU GPON Any FTTx deployment CO/DSL, FTTN, FTTB/C, FTTH All boxes fit for OSP deployment Industrial temperature hardening Common equipment practice One access-management system xdsl/voice/gpon/p2p Any service Residential triple play Business services Mobile backhaul Application Enablement processor Field-proven and innovative >250 customers, >200 million DSL lines >1 million ONTs shipped 10G XG-PON Green DSL, bonding Vectoring, phantom mode trials 17 Sanjay CeBit 2011

Thank you 18 Sanjay CeBit 2011