gunnar alcatel lucent open networks
TRANSCRIPT
Scandinavian Open Access Networks5 years of success…and a few lessons learned
Gunnar Florus <[email protected]>
Manchester, June 22nd 2009
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Investing in FibreMarket Drivers and Services1
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NG game consolesw/Internet
(PS3, Xbox 360, Wii: Nintendo forecasts 16M
units in ’07)Multimedia-capable
PCs (25 Mio sold in ‘06,10% growth)
Digital photography (20% of BB subs used
Internet upload services)
MP3 players (35 Mio sold in ’06,
30% growth)
Multimedia applications drive the demand for UHS broadband
Heavy Reading FTTH Market in Europe 2006-2011
High-definition TV sets
(50% of TVs purchased are HD-
ready(5% in ’05))
Consumer-focus
Note:UHS = Ultra High Speed (optical fibre networks); ADSL/ADLS2+/VDSL/VDSL2 are considered as VHS (Very High Speed) networks
Digital cameras (Owned by 60% of
households end ’06)
Mass-market multimedia devices are changing our personal lifestyle
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High-definition images exchange
UHS broadband as engine for local social and economic development
Citizen-focus
Tele-assistance, Tele-monitoring
Interactive remote learning
Tele-working Home and premises video surveillance
Large file-sharing
Remote back-up, storage
Network-hosted applications
Business-focus
Note:UHS = Ultra High Speed (optical fibre networks); ADSL/ADLS2+/VDSL/VDSL2 are considered as VHS (Very High Speed) networks
The service-oriented economy and information society
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Business Services Public ServicesResidential Services
Ultra High-speed Internet
Multi-stream IPTV
Interactive TV
VoIP
Multi-player gaming
Tele-assistance
Home surveillance
Security & Alarm Services
Data VPN
IP Telephony
Collaboration tools
Mobility / Telecommuting
Campus/building surveillance
“Hospitality” services
Online learning
Utility metering
Web services
Public safety
Emergency
Healthcare
Home Healthcare
Information
Education
High crime area CCTV
Public transportation (rail, road)
Secure municipal network
One-stop administration portal
Innovative services with ‘no-limit’ UHS broadband open networks
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Open Access NetworksA Business Model that Works2
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Design and build the network Manages site & civil engineering work Owns the fibre
Infrastructureowner
Infrastructureowner
NetworkoperatorNetworkoperator
End userEnd user
Rights of way
Rights to operate the network
Rights to offer services on
Network Operator portal
Owns the network (edge/core/access) equipments up to the customer premises
Operates the network Manages the delivery of the services on behalf
of the retail service providers Provides connectivity to end-users & retail
service providers Provides end-user portals for service
subscription (self-registration & auto-provisioning)
Interconnects the network to the Internet backbone and to other telco networks
Owns the service and the application servers
Operates the service
Provides end-user support for delivered service
Provides customer support for service delivery, connectivity and network issues
Provides customer support for fibre
Retail ServiceProvider
Retail ServiceProvider
Right to Choose!
Open Network structure, roles and responsibilities
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Passive Infrastructure Provider
Active Network Provider
Retail Service Provider
Integrated or separated? Passive Infrastructure
Provider
Active Network Provider
Retail Service Provider
The Layered Model – Do what you do best!
Retail Services(residential, public & business)
Retail Services(residential, public & business)
Active Network(network equipments,
business & operation support)
Active Network(network equipments,
business & operation support)
Passive Infrastructure(trenches, ducts, fibre)
Passive Infrastructure(trenches, ducts, fibre)
End-userEnd-user
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Open networks are:
1. Technology-agnostic and open to all end users.
2. Non-exclusive, enabling multiple retail service providers to offer competitive services to end users.
3. Open for all access technologies, all vendors, all network operators and all service providers.
4. Future-ready, because a fibre infrastructure is a long-term, low-risk investment and because the active network is highly flexible and easily upgraded.
5. Financially sustaining, because they are paid for by subscribers, not tax payers.
Retail Services(residential, public & business)
Retail Services(residential, public & business)
Active Network(network equipments,
business & operation support)
Active Network(network equipments,
business & operation support)
Passive Infrastructure(trenches, ducts, fibre)
Passive Infrastructure(trenches, ducts, fibre)
End-userEnd-user
Open Networks – Just how Open is Open?
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Open Networks – End to End Architecture
Optical transport
Integrated network, service and subscriber management
Optical core
AccessNodes
forxDSL,PON,
EthernetWiMAX
Broadband Service
Aggregator
BroadbandService Router
Scalable and distributed subscriber, service and application policy enforcement
Centralized policymanagement
IPTVProviders
High SpeedInternet
providers
IP/MPLS
IPcommunication
providers
Fiber
RG residential gateway
Digitalhome
Otherservice
providers
Residential
Business
Public
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A look to SwedenSwedish City Networks3
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Sweden, among leading FTTH countries
FTTH subscribers – end ‘05
CITYNETS
• 5th FTTx broadband country worldwide
98% households BB enabled
155 City Networks offering FTTH, mainly on open access infrastructure
Over 800,000 active FTTH users, more than 50% via city nets
Rated as country with the best value for bandwidth in OECD
The Swedish broadband market
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- 155 City Network Operators covering 60% of municipalities
- 18 Regional Networks, some connected to Finland and Norway
- Total investment 1,9 Billion EUR
- Funding from Swedish government 0,5 Billion EUR
- Funding from EU 200 Million EUR
- Yearly investment 150 Million EUR
- 3 500 000 km fibre deployed,
- 95% offers dark fibre
- 1,3 million homes passed
- 550 000 active customers
- 74% operating according to the OAN
- From 55 SP´s in 2002 – 400 in 2007
Sources: SSNF, 2008
The Swedish CityNet Market
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Swedish Urban Network Association
Bredband &Samhälle
Lobbying (EU, Sweden)
Education & Training
Recommendations
Yearly conferences
Common set top box for Open IP TV
Own magazine
Certification of products and
solutions (SKA certificate)
Visit http://www.ssnf.org/
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Things we’ve doneand lessons learned4
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A few lessons learned
There is no Crystal Ball
Build for Change
Maximum Flexibility
Educate the End-Users
Confusing Content Freedom?
Community Involvement
Local Content Generation
Small and Large share common problems
The network and operational challenges of a small buildingblock in Norway and of AT&T in USA are remarkably similar…
Hence one common design blueprint for everyone to benefit
Municipal Involvement
Vital for rural area development
Working together is twice the fun and quadruple the profit…
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P2P FibreBPONGPON
80+ FTTx (VDSL, PON, P2P)
20+ nation-wide operators, 60+ Municipalities/Utilities
25+ as end-to-end IP network vendor
FTTH integrator (Nordics, France, Spain, Kuwait, Switzerland)
Some Further Examples
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Retail ServiceProviders
Retail ServiceProviders
NetworkOperatorNetworkOperator
InfrastructureOwner
InfrastructureOwner
End-userEnd-user
Muni/UtilityMuni/Utility
IndependentOperator
IndependentOperator
Any ServiceProvider
Any ServiceProvider
End-userEnd-user
NetworkOperatorNetworkOperator
InfrastructureOwner
InfrastructureOwner
Service feesService fees
Network feesNetwork fees
Infrastructure feesInfrastructure fees
(Accommodationor other utility)
(Accommodationor other utility)
Connection feesConnection fees
$
$
$
$$
Retail ServiceProviders
Retail ServiceProviders
InfrastructureOwner
InfrastructureOwner
NetworkOperatorNetworkOperator End-userEnd-userServicesDark Fibre IP-bitstream
access
Rights of way Rights to operate the network
Rights to offer services on
Network Operator portal
Appoints
Wholesale Ethernet
IP-bitstream access offer
Retail ServiceProviders
Retail ServiceProviders
Value chain
Model Revenue streams
Business Model Value Chains
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Distinct competitive advantage to attract citizens and businesses
Introduce new on-line capabilities to better serve their citizens
Enhance their public service offerings to all
Boost socio-economic development, even in underserved or remote areas
Pay-by-itself public infrastructure: sustained by subscribers, not taxpayers
Provide high-quality broadband at affordable prices
Interconnect their offices to save cost
Bridge the digital divide which has recently shifted from Internet access to ultra high-speed Internet access
Key Drivers for Municipalities
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Diversification & new revenue streams
Telecom as part of a bundle offer (4th utility)
Cost synergies at infrastructure level
Operational cost savings and green initiatives
smart metering capabilities new building management services
(remote monitoring, access control, energy management)
Anticipate future legislative requirements in energy savings
Key Drivers for Utilities
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