1 © 2000, cisco systems, inc. 1 ethernet to the home

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1 2000, Cisco Systems, Inc. 1 Ethernet To The Home Ethernet To The Home

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1© 2000, Cisco Systems, Inc. 1

Ethernet To The HomeEthernet To The Home

2© 2000, Cisco Systems, Inc. 2

ETTH is aimed at serving residential and SMB customers located in Multi Dwelling Unit with Ethernet connectivity

at a competitive price point and operating costs when compared to other fiber to the building option

Ethernet To The HomeEthernet To The Home

Always on connectionFixed monthly cost (EU$ 50/month)Two-way communicationThe greatest potential: 100 MbpsThe cheapest: GE over fiber

3© 2000, Cisco Systems, Inc. 3

Business PropositionBusiness PropositionMarket OverviewMarket Overview

– ETTH for residential, SOHO and SMB

– Located in MxU

– Always on 10/100 Mbps Ethernet connectivity

– Companies, having gained the right to use conduits and fibers owned by parent companies, which have digging permits

– Multi-utilities (Gas, Water, Power) operating in major Cities, who own the land where the cables are laid

– > 60 cities in Europe have seen multiple operators deploying new metro networks

– lighting dark fiber in metropolitan area networks (MANs)

– delivering Ethernet connections to newer buildings

– wiring building

– offering Ethernet, vast amounts of cheap bandwidth when compared with DSL, cable, and wireless.

WHO

WHAT

HOW

4© 2000, Cisco Systems, Inc. 4

Ethernet Price TrendEthernet Price Trend

Ethernet Price Trend

0200400600800

10001200140016001800

1996 1997 1998 1999 2000

Year

Av

e P

er

Po

rt

Pri

ce

US

$

Ethernet

FE

GE

Ethernet Price Trend – Source Dell’Oro

5© 2000, Cisco Systems, Inc. 5

Cost of delivery bandwidthCost of delivery bandwidth

10

100

1000

10000

1998 1999 2000 2001 2002 2003 2004 2005Year

Meg

abit

/Po

rt/M

on

th/U

S$

SONET

ATM

GE

SOURCE: BCR Sept, 2000 by Peter Sevcik, NetForecast, Waltham, MA 

6© 2000, Cisco Systems, Inc. 6

BenefitsBenefitsCustomers, Owners and Content Providers Customers, Owners and Content Providers

Value to the Property OwnersIncreased value of the propertyIncreased value of the property

Only one cable infrastructure to maintainOnly one cable infrastructure to maintain

Property automation possibleProperty automation possible

Value to the ConsumersHigh-speed access at the “first mile” High-speed access at the “first mile”

Always-on services (no slow dial, time-based billing) Always-on services (no slow dial, time-based billing)

Voice for “flat fee” modelVoice for “flat fee” model

Value for Content Partners Broadband content distributionBroadband content distribution

Stimulate local content partners with niche exclusivityStimulate local content partners with niche exclusivity

Marketing possibilities on start pageMarketing possibilities on start page

Customer information accessCustomer information access

Video and Internet IntegrationVideo and Internet Integration

Walk Away

Walk Away

1 or 10 GE on Metro Fiber Rings

E-commerce

Communications/collaboration

Customer relationship management

Finance/accounting

Education/training

Human resources

DataquestDataquest

7© 2000, Cisco Systems, Inc. 7

Home Control Home Control and Securityand Security

Family ManagementFamily ManagementCommerceCommerce

CommunicationsCommunications

EntertainmentEntertainmentInternet AccessInternet Access

Shared Shared DevicesDevices

Internet Home SolutionsInternet Home Solutions

8© 2000, Cisco Systems, Inc. 8

Ethernet LAN

Ethernet LAN

Ethernet LAN

Ethernet LAN

Traditional Telco networkVoice-oriented connectivity

Telco Central Office

Edge Switch

Edge Switch

Gig WAN

Router

Gig WAN

Router

Next-generation IP over fiber networkusing Ethernet and derivatives

up to gigabit speeds

Rou

ter

sCS

U/

DS

Us

CS

U/

DS

UsRou

ter

s

ATMSwitchMUX

ATMSwitch MUX

SONET

Telco Central Office

8

Next-Generation MANNext-Generation MAN

TELECOM

PREDICTS2000Dataquest

9© 2000, Cisco Systems, Inc. 9

Network Architecture OverviewNetwork Architecture Overview

Access layer3500-XL with LX/LH, ZX GBICs

GSR

Catalyst 3500 XL in the basement

Cisco 12000 Internet Routers Cisco 12000 Internet Routers

InternetInternet

Central OfficeCentral Office

Local ContentLocal Content ProvidersProviders

Gigabit Ethernet Links, SX, LX/LH, ZX on Metro Fiber Rings SOHO & SME

CPE 10/100 Mbps

Residential CPE10/100 Mbps to each apartment

Distribution layerDistribution layerCatalyst 6500Catalyst 6500

Walk Away

10© 2000, Cisco Systems, Inc. 10

Local ContentLocal Content

Single house Single house

Star topologyAccess Layer Switches Catalyst 4006, Layer3 cardPort density per 4006: 192, 1 GE

Distribution SwitchCatalyst 4006, Layer3 card

Service NetworkTV-VLAN

DHCP ServerImagicTVServer

Service NetworkInternet-VLAN

10/100 Mbit/s10/100 Mbit/s300 kbit/s per household 300 kbit/s per household per Internet Accessper Internet Access

Cisco 12000 Internet Routers or 7200

Dedicated Ethernet ports

TV Ethernet

Internet Access

Set Top Box with 2

SCART connections

for the TV and VCR

Residential CPE

InternetInternet

2xSTM-1 (1000 users)

11© 2000, Cisco Systems, Inc. 11

Double Rings ArchitectureDouble Rings Architecture

Metro/Regional GBE ring

1st level(POS or DPT)

GBE ring2nd level

DPT

Cisco 3512

Cisco 3512

Cisco 3512

Cisco 3512

Cisco 3512

GBE ring2nd level

DPT

Cisco 3512

Cisco 3512

Cisco 3512

Cisco 3512

Cisco 3512

GBE ring2nd level

DPT

GSR12000 Internet Routers Long Haul

6509

12© 2000, Cisco Systems, Inc. 12

Design RequirementsDesign Requirements

• Density of subscribers per metro area

• Deployment of content rich application such as video and voice

• High bandwith requirements

• Quality of Service

• Security

• Ease of Network Deployment and Upgrade

• Cost of Network Equipment

• Subscriber Authentication, Access Control and Billing

• High-Speed Link Failover Converge Time

• Use of Existing Cable Infrastructure

• Interface to Regional Telco Network and Internet

13© 2000, Cisco Systems, Inc. 13

Solution BenefitsSolution Benefits

Cost Effectiveness

New Revenue Streams

High Performance

Ease of Deployment

Investment Protection

14© 2000, Cisco Systems, Inc. 14

In-building connectivityIn-building connectivity

1. New UTP CAT-5 within the buildingDrawback: no space for extra cable in the existing

buildings, longest reach is 100 meters 802.3

2. New multi/mono mode fiberDrawback: current issue with the copper based Ethernet 10/100 Mbps on Catalyst3500XL; E/O converters are required adding 200$/user

3. Existing telephone copper pairs with VDSL

Drawback: deregulation issues, normally owned by the incumbent

4. 802.11 W-LAN coverageDrawback: requires frequencies and it has speed limits (11 Mbit/s per cell)

5. MATV coax cabling with DOCSIS

Catalyst 6500 L3 SwitchesGig Eth Links

10/100 Mbps

GSR

3500-XLs

C.O.

SOHO

Gig Eth Links

CPE

15© 2000, Cisco Systems, Inc. 15

Full Optical in building wiringFull Optical in building wiring

BenefitsSimple to deployFlexible, it can fit well within the MDU and in the apartmentNo FEXT/NEXT issuesFuture-proof, easy upgrade to GE accessUnlimited bandwithQuick user activationToday: uses o/e converters

Cisco Products: coming with next Cat 3500XL-3

16© 2000, Cisco Systems, Inc. 16

Copper alternative: LRECopper alternative: LRE

• Enables the use of Ethernet over existing, unconditioned, telephone-grade wire

• Enables Ethernet to coexist with “plain old telephone service” (POTS), Integrated Services Digital Network (ISDN) or PBX signaling services

• Uses newest DSL coding and digital modulation techniques with Ethernet

• Provides a point-to-point transmission that can deliver a symmetrical, full-duplex, data rate of up to 15 Mbps

• LRE products are simple to install and interface with any existing Ethernet solution

17© 2000, Cisco Systems, Inc. 17

Professional, SOHO & SME CPEProfessional, SOHO & SME CPE

Cisco 1605: providing Low end routing capabilities. The Cisco 1605 R router provides a 10BaseT and an AUI port on the first Ethernet interface and a 10BaseT port on the second Ethernet interface.

Cisco 1751: The one-port Ethernet WIC (WIC-1ENET) offers customers the option of an additional Ethernet port, allowing broadband Internet access or deployment of a perimeter LAN or demilitarized zone (DMZ). VoIP port availabilityVoIP port availability.

Cisco 2611: providing entry level routing capabilities with two Ethernet ports.VoIP port VoIP port availabilityavailability.

Cisco 2621:providing entry level routing with two 10/100 Mbps auto-sensing Ethernet Port. VoIP port VoIP port availability.availability.

Cisco 806: as low cost ethernet-to-ethernet IOS router but it won't include VoIPproviding. You can combine it with Komodo to enable Voice support.

Non CPE, a customer Desktop/Server, or a customer LAN, can be directly connected to the E/FE 10/100 port.

NewNew

NewNew

18© 2000, Cisco Systems, Inc. 18

Intelligent Network Services BenefitsIntelligent Network Services BenefitsIntelligent Network Services BenefitsIntelligent Network Services Benefits

Security

Quality of Services

Multicast Media Support

Subscriber Auhentication, Access Control and Billing

Link Resiliency

Node Scalability

Cisco Solution BenefitsCisco Solution Benefits

19© 2000, Cisco Systems, Inc. 19

Residential VoiceResidential Voice

PSTNCisco GK

Infrastructure ZoneApplication Zone

Packet Network

NetSpeak RouteServer

Billing & Management Servers

V

NetSpeakMedia Server

Call Control and Signaling

Cisco GK

Access Zone

•Access Zone: RAS functions•Application Zone: Handles Residential Services•Infrastructure Zone: Handles PSTN interface, Directory Gatekeeper (if needed), etc

NetSpeakResidential GK

Catalyst 6500 L3 Switches Gig Eth Links

10/100 Mbps

Cisco 12000 Internet Routers

3500-XLs

C.O.

SOHO

Gig Eth Links

CPE

A must to have….but not a business A must to have….but not a business driverdriver

20© 2000, Cisco Systems, Inc. 20

Typical Customer Video BundleTypical Customer Video Bundle

•Video services are packaged into bundles…

Broadcast Video

~100 channel line-up, basic + premium tiers

Electronic Program Guide (EPG)

Web on TV and Interactive Video Enhancements

VOD, Pay-Per-View

Streaming Media Services

Ad Insertion

Personalized TV Capabilities

Rapidly becoming part of the bundle

…which in turn become part of overall service bundles including voice, video and data