Deploying All-Optical Access Networks

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THE FUTURE IS ACCESS... TM JOIN THE REVOLUTION TM Deploying All-Optical Access Networks Architectures & Implications Ethernet in the First Mile - July 2001 IEEE 802.3 - Seattle, Washington July 11, 2001 Keith Shaneman Market Manager Corning Access Solutions Corning Cable Systems

Agenda Access Network Architectures & Designs Local Convergence (LCP) Distributed Splitting EFM Network Cost Modeling Local Convergence Analysis Distributed Splitting Analysis Architecture Comparison EFM Leverage Points Deployment Criteria of Success

Objectives for Access Network Designs A Future-proofed OSP Network Reliability Scalability Network architecture ubiquitous to Protocol Adaptable to future equipment upgrades Minimize network installation complexity Pre-Stubbed Hardware & Equipment Connector Technology (Hardware+Cable) Mass fusion splicing Minimize up-front CAPEX investment Defer as much CAPEX to subscriber turn-up as possible Reduce Life-Cycle Costs Minimize powering costs Reduce maintenance requirements & truck rolls

Generic Access Layout EFM Architectural Models

PON & P2P Architectural Models Two Primary EFM Designs 1. Local Convergence 2. Distributed Splitting Central Office / Head-End Broadband (BPON) ATM (APON) Ethernet (EPON) P O N

Architectural Models Local Convergence (LC)

Architectural Models Local Convergence (LC)

Architectural Models Local Convergence (LC) Pros: Local Convergence Consolidates Subscriber Configuration Ability to service 32-1280 Subscribers per LCP Ability to house Passive Splitters or Active Electronics at LCP Maximizes Port Utilization for low penetration rates Enables port-by-port assignment of subscribers - minimizing couplers Balances network scalability with up-front CAPEX Fiber-lean Feeder System - Fiber-rich Distribution & Drop System Provides dedicated Optical Path from LCP to Subscribers Cons: May cause fiber density / footprint issues for dense deployments Can be negated by covering fewer homes per LCP

Architectural Models Distributed Splitting

Architectural Models Distributed Splitting

Architectural Models Distributed Splitting Pros: Minimizes amount of Fiber required to Deploy Reduces up-front cable CAPEX requirements Uses Fiber-lean Feeder and Distribution System Utilizes low-port count Couplers & Splitters Two Tier Splitting in NAPs and LCPs Reduces footprint requirements for splice closures/enclosures Cons: Potential Limitations on Bandwidth and Scalability No Single Configuration or Adaptation Point High splitting ratio may limit future network scalability Reduced Port Utilization for low penetration rate areas Increases requirements for couplers & splitters No cost-effective network migration path

Access Deployment Cost Analysis Cost Modeling Objectives Analyze cost drivers for PON deployments Cable + Hardware & Equipment Installation / Labor Costs Understand in-direct cost relationships Subscriber penetration rate Homes per LCP; Homes per NAP Varying splitter Architectures Compare costs/benefits of PON architectures Identify cost trade-offs of LC architecture vs. Distributed Splitting

Access Deployment Cost Analysis Initial Deployment Cost Drivers Active Equipment CO CO / HE HE Active Active Equipment Equipment Installation Installation Labor & Installation $ PON Architecture & Design OSP OSP Cable Cable & Equipment Equipment Installation Installation Passive Infrastructure

Access Deployment Cost Model Deployment Cost Driver Coverage Model includes the following cost drivers: Optical Cable Costs Feeder, Distribution, Drop, Cable Assemblies, etc. Passive Hardware & Equipment Costs Couplers/Splitters, Connectors, Enclosures, Splice Closures, Racks/Trays/Cassettes, etc. Installation & Labor Costs Cable Prep & Installation, Hardware Installation, Splicing, Termination, etc. Model does not account for the following costs: Model does not account for the following costs: Active Equipment Costs Switch, Opto-Electronics, Transceivers, Converters, etc. Rights of Way Acquisition costs, Legal Fees, Insurance, Make Ready, etc. Life-Cycle Costs Powering, Incremental Maintenance Calls, Truck Rolls, etc.

EFM Cost Modeling Understand Deployment Costs & Drivers for each Access network architecture & design Cable, Hardware, and Labor Provide variable analysis for varying Demographics Low-, Medium-, and High-Density Subscriber Areas Varying Labor & Infrastructure Costs Compare Costs of LC & DS Architectures Cost per Subscriber Cost per Home Passed Deployment Scenario: 5,000 Home Residential Area

Distributed Splitting Cost Analysis Deployment Cost Analysis Distributed Splitting Architecture 30% Penetration - Medium Density Cable 8.3% Splitters 2.8% Labor 85.9% Hardware 5% Closures 1.4% FOHW 1.2% FOJP 0.5%

Distributed Splitting Cost Analysis Deployment Cost Analysis Distributed Splitting - 30% Penetration Deployment Cost (Relative) 10 9 8 7 6 5 4 3 2 1 - Low Density Medium Density High Density Market Demographics Cable Hardware Labor

Local Convergence Cost Analysis Deployment Cost Analysis Local Convergence Architecture 30% Penetration - Medium Density Cable 12.3% Splitters 2.2% Hardware 5% Closures 1.3% Labor 82.6% FOHW 1.1% FOJP 0.5%

Local Convergence Cost Analysis Deployment Cost Analysis Local Convergence - 30% Penetration Deployment Cost (Relative) 10 9 8 7 6 5 4 3 2 1 Low Density Medium Density High Density Market Demographics Hardware Cable Labor

Cost per Home Passed 30% Subscriber Penetration Cost per Home Passed (Relative) 1.15 1.10 1.05 1.00 Low Density Medium Density High Density Local Convergence Distributed Splitting

Cost per Home Passed 80% Subscriber Penetration 1.15 Cost per Home Passed (Relative) 1.10 1.05 1.00 Low Density Medium Density High Density Local Convergence Distributed Splitting

EFM Leverage Points Our Customers Criteria of Success! Subscriber Revenue + Miscellaneous (Tax Credit, etc.) - Infrastructure Cost - Installation Cost Return on Investment

Conclusion EFM should not be distracted by the Tyranny of the OR There is no single solution for all of our customer needs Carriers may leverage several PON & P2P designs and architectures in deploying their Access networks to cost-effectively service their customers Choosing the right Access architecture (or combination of architectures) is critical to our customers success! Must analyze the costs & long-term implications of various PON/P2P architectures on a segment-by-segment and deployment-bydeployment basis Help customers to make an informed decision - the success of their business and ours depends on it! EFM should help carriers maximize the effectiveness of their Business plans Address as many leverage points as possible to maximize success!

Contact Information Keith Shaneman Market Manager Corning Access Solutions & Business Development Corning Cable Systems 800 17th Street NW Hickory, NC 28603 Phone: (828) 323-6721 Fax: (828) 323-6752 E-Mail: keith.shaneman@corning.com