Ethernet To The Home © 2000, Cisco Systems, Inc. 1 Ethernet To The Home 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 Always on connection Fixed monthly cost (EU$ 50/month) Two-way communication The greatest potential: 100 Mbps The cheapest: GE over fiber © 2000, Cisco Systems, Inc. 2 Business Proposition Market Overview WHAT – 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 WHO – 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 HOW – wiring building – offering Ethernet, vast amounts of cheap bandwidth when compared with DSL, cable, and wireless. © 2000, Cisco Systems, Inc. 3 Ethernet Price Trend Ave Per Port Price US$ Ethernet Price Trend 1800 1600 1400 1200 1000 800 600 400 200 0 1996 Ethernet FE GE 1997 1998 1999 2000 Year Ethernet Price Trend – Source Dell’Oro © 2000, Cisco Systems, Inc. 4 Cost of delivery bandwidth Megabit/Port/Month/US$ 10000 SONET ATM GE 1000 100 10 1998 1999 2000 2001 2002 2003 2004 2005 Year SOURCE: BCR Sept, 2000 by Peter Sevcik, NetForecast, Waltham, MA © 2000, Cisco Systems, Inc. 5 Benefits Customers, Owners and Content Providers Value to the Consumers Value to the Property Owners High-speed access at the “first mile” Increased value of the property Always-on services (no slow dial, time-based billing) Only one cable infrastructure to maintain Voice for “flat fee” model Property automation possible Walk Away 1 or 10 GE on Metro Fiber Rings Walk Away Dataquest © 2000, Cisco Systems, Inc. E-commerce Value for Content Partners Communications/collaboration Broadband content distribution Customer relationship management Stimulate local content partners with niche exclusivity Finance/accounting Marketing possibilities on start page Education/training Customer information access Human resources Video and Internet Integration 6 Internet Home Solutions Family Management Commerce Communications Home Control and Security Shared Devices Internet Access © 2000, Cisco Systems, Inc. Entertainment 7 Next-Generation MAN Traditional Telco network Voice-oriented connectivity ATM Switch MUX Telco Central Office MUX PREDICTS2000 TELECOM SONET Ethernet LAN Dataquest ATM Switch Ethernet LAN Telco Central Office Next-generation IP over fiber network using Ethernet and derivatives up to gigabit speeds Ethernet LAN Edge Switch Gig WAN Router Gig WAN Router Edge Switch Ethernet LAN 8 © 2000, Cisco Systems, Inc. 8 Network Architecture Overview Central Office Local Content Providers GSR Internet Cisco 12000 Internet Routers Distribution layer Catalyst 6500 Access layer 3500-XL with LX/LH, ZX GBICs Residential CPE 10/100 Mbps to each apartment Gigabit Ethernet Links, SX, LX/LH, ZX on Metro Fiber Rings SOHO & SME CPE 10/100 Mbps Walk Away Catalyst 3500 XL in the basement © 2000, Cisco Systems, Inc. 9 Single house Set Top Box with 2 SCART connections for the TV and VCR 10/100 Mbit/s 300 kbit/s per household per Internet Access Residential CPE Star topology Access Layer Switches Catalyst 4006, Layer3 card Port density per 4006: 192, 1 GE Dedicated Ethernet ports TV Ethernet Internet Access 2xSTM-1 (1000 users) Distribution Switch Catalyst 4006, Layer3 card Internet Cisco 12000 Internet Routers or 7200 Service Network Internet-VLAN Service Network TV-VLAN ImagicTV Server © 2000, Cisco Systems, Inc. Local Content DHCP Server 10 Double Rings Architecture GBE ring 2nd level DPT GSR12000 Internet Routers Long Haul Metro/Regional GBE ring 1st level (POS or DPT) Cisco 3512 GBE ring 2nd level DPT 6509 Cisco 3512 Cisco 3512 GBE ring 2nd level DPT Cisco 3512 Cisco 3512 Cisco 3512 Cisco 3512 Cisco 3512 © 2000, Cisco Systems, Inc. Cisco 3512 Cisco 3512 11 Design 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 © 2000, Cisco Systems, Inc. 12 Solution Benefits Cost Effectiveness New Revenue Streams High Performance Ease of Deployment Investment Protection © 2000, Cisco Systems, Inc. 13 In-building connectivity 1. New UTP CAT-5 within the building Drawback: no space for extra cable in the existing C.O. buildings, longest reach is 100 meters 802.3 2. New multi/mono mode fiber GSR Drawback: 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 3500-XLs Catalyst 6500 L3 Switches Gig Eth Links Drawback: deregulation issues, normally owned by the incumbent 4. 802.11 W-LAN coverage Gig Eth Links 10/100 Mbps CPE SOHO Drawback: requires frequencies and it has speed limits (11 Mbit/s per cell) 5. MATV coax cabling with DOCSIS © 2000, Cisco Systems, Inc. 14 Full Optical in building wiring Benefits Simple to deploy Flexible, it can fit well within the MDU and in the apartment No FEXT/NEXT issues Future-proof, easy upgrade to GE access Unlimited bandwith Quick user activation Today: uses o/e converters © 2000, Cisco Systems, Inc. Cisco Products: coming with next Cat 3500XL-3 15 Copper 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 © 2000, Cisco Systems, Inc. 16 Professional, 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. New Cisco 1751: The one-port Ethernet WIC (WIC1ENET) 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 availability. Cisco 2611: providing entry level routing capabilities with two Ethernet ports.VoIP port availability. Cisco 2621:providing entry level routing with two 10/100 Mbps auto-sensing Ethernet Port. VoIP port availability. New 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 © 2000, Cisco Systems, Inc. 10/100 port. 17 Cisco Solution Benefits Security Quality of Services Multicast Media Support Subscriber Auhentication, Access Control and Billing Link Resiliency Node Scalability Intelligent Network Services Benefits © 2000, Cisco Systems, Inc. 18 Residential Voice • Access Zone: RAS functions • Application Zone: Handles Residential Services • Infrastructure Zone: Handles PSTN interface, Directory Gatekeeper (if needed), etc Access Zone Application Zone Infrastructure Zone NetSpeak NetSpeak Route Media Server Server Billing & Management Servers Cisco 12000 Internet Routers Cisco GK Cisco GK C.O. V PSTN NetSpeak Residential GK 3500-XLs Catalyst 6500 L3 Switches Gig Eth Links Gig Eth Links Packet Network Call Control and Signaling A must to have….but not a business driver 10/100 Mbps CPE SOHO © 2000, Cisco Systems, Inc. 19 Typical 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 © 2000, Cisco Systems, Inc. 20