Building Next Generation
Broadband Network (NGBN)
Costas Strigaris
Huawei North Africa
E-mail: costas@huawei.com
Mobile: +2 0122300475
HUAWEI TECHNOLOGIES CO., LTD.
Content
• The value of NGBN
• NGBN Challenges
• Case Study
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NGBN is the essential national assets
“I believe that America should lead the
world in broadband penetration”
Barack Obama, USA President
“Next generation broadband will be critical
enabler to build new capabilities and
transform our industries”
Lee Hsien Loong, PM Singapore
“Universal Broadband Access is crucial
for Britain’s economy”
“Just announced biggest ever investment in
Australian broadband-really exciting,
infrastructure for the future”
Gordon Brown, UK PM
Kevin Rudd, Australian PM
Appetite for bandwidth is unlimited. It leads
to two consequences
To achieve the target of Vision 2020,
economy of Malaysia is required to
transform …
(1) Fixed network remains competitive
DATO’ SRI MOHD NAJIB TUN ABDUL RAZAK
Prime Minister of Malaysia
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(2) Strong growth in new services
Lars Nybergu， President and CEO of
TeliaSonera
Page 3
NGBN is valuable for the economy, society and industry.
Government’s investment accelerates for the GDP contribution, competitiveness, job creation and social benefit
National Broadband Networks Deployment
Impact
on0 GDP 0
0
0
Garnter (USA)
3.9%
CEBR (Scotland)
2.5%
Government (Korea)
1.3%
Government (Australia)
0.8%
Criterion Study (US)
0.8%
Brooking Institute (US)
EIU (NZ)
Socio-Economic Benefits
0
0.6%
0.4%
Avg. 1.46%
0
•Innovation
•Labor Productivity
•National Competitiveness
•Resources Utilization
•Social Inclusion
•Lifestyle
•For every 1% increase in BB penetration, employment rate
increased 0.2-0.3%;
•For every $1Investment in BB, the whole society got 10 times
return
•BB helped the manufacturing sector increase 5%, services
sector increase 10% in labor productivity
(% increases within five years)
Source: Booz & Company analysis
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Government strategies to support NGBN
NGBN
projects
Singapore
Malaysia
Australia
Japan
UK
Qatar
Investment
S$1bn
US$0,7 bn
A$43 bn
US$1 bn
€2.1 bn
~QAR1 bn
Gov.
Strategies
iN2015
NBN
U-Japan
NGA
Q.NGN
TM
NBNCo
NTT
State
Investment
State major
owner
State
Investment
HSBB
OpenNet (NetCo)
Organization
Nucleus Connect
(OpCo)
State
Investment
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BT
State
Subsidy
Q.NGN Co
State major
owner
Page 5
Three modes of NGBN construction and operation
State subsidy mode
• Setup stratagem target
Government
State major owner mode
• Setup stratagem target
• Provide policy support
• Share found public-operated
corporation and construct network
• Subsection financing
allowance
• Insure open access
• Hold network assets
Third party construction mode
• Setup stratagem target
• Supervise third party operation
• Insure open access
• Provide part of capital support
• Construct network
Operator
• Service innovation and user
management
• Be absorbed in service
innovation and user management
• Be absorbed in service innovation
and user management
• Hold network assets
Third Party
—
—
• Construct network, bandwidth
wholesale
• Hold network assets
Sample：
：
• Japan u-Japan plan
• Malaysia HSBB project
• UK BT NGA project
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• Australia NBN project
• Qatar Q.NGN project
• Singapore NGNBN project
Page 6
Content
• The value of NGBN
• NGBN Challenges
• Case Study
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NGBN is Coming
Fast Increase of Video and Mobile Data Traffic
Incumbents’ Broadband Plan
60000
Country
单位
： PB/月
月
Unit:
PB/M
Mobile Data
50000
40000
30000
47% of network
traffic increase per
year
100 Mbps
90%
Business
France
2009-2012
100 Mbps
~33%
Consumer - Gaming
Germany
2009-2014
50 Mbps
75%
Korea
2009-2012
1 Gbps
100%
Consumer - Video
Malaysia
2007-2017
10 Mbps+
38%
Consumer - P2P
New Zealand
2009-2019
100 Mbps
75%
Singapore
2009-2015
1 Gbps
100%
UK
2009-2017
24-100 Mbps
75%
Consumer - Web/Email
2010
2011
2012
2013
Source: CSMG analysis
Source Huawei MI
• Video and P2P are major drives of metro and backbone expansion.
• MBB traffic goes up to 66 times in next 5 years, mobile operator also face similar issues
• 20M~100M ultra broadband era is coming in next 3 years.
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Coverage
2009-2017
10000
2009
Speeds
Australia
20000
0
2008
Program
Duration
Page 8
Healthy ecosystem realizes the whole NGBN picture
Healthy Ecosystem
Telecom
Network
Broadcasting
Network
NGBN
Open, Fast, Affordable
Internet
Network
Service
Provider
End-user
Service
Provider
Services innovation, QoS
Design, build and operation of the
network active infrastructure
Design, build and operation of the
network passive infrastructure
Universal coverage, Open access,
Fair competition
GDP, Competitiveness, Jobs…
active
infrastructure
passive
infrastructure
Digital Home
E -Business
E-Government
Fast (100M-1G), Affordable
End-user
Government
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Key elements of NGBN
1
Universal coverage, Open
access policy
Regulation
Fair competition
Investment stimulation
NGBN
Plan
EOT (Establish,
Operate, Transfer)
Joint GTM
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2
3
Network
Construction &
Operation
Service Enabler &
Bandwidth cost
Page 10
Open – APRU
Fast – Bandwidth
Affordable – Cost
Regulation – NGBN’s new challenges
Diversified Net Neutral models
Regulator’s considerations
Retail
Service
Providers
Infrastructure separation
Open access method (SLU,
Huawei’s Contribution
Define and deploy
L2 bitstream solution
LLU, Bit stream, Duct
sharing…)
Active
Network
Passive
Network
Singapore
UK
Synchronize fiber
open solution with
schedule
Wholesale pricing
Rates of Investment Return
Technology evolution …
Define physical FTTH
open solution
How to ensure fair
competition and stimulate
investment?
Italy
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Define L2 FTTx open
solution
Page 11
“Scissors Gap” is major challenge
A
How to keep the technology in line with
bandwidth increase?
How to generate new revenue?
C
How to restrain the cost?
B
Po
s
oo
t-M
’s
re
G
ng
wi
ro
Curve B: Bandwidth
Worse
Margin
Sustainable
Margin
Good
Margin
Value per Bit
SMS Voice
Ultra Broadband Era
Broadband Era
Voice Era
Curve A: ARPU
Curve C: Cost
Leased
line Internet
MBB
IPTV
Killer Applications
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HDTV
Long tail applications
Long Tail Applications
Page 12
Content
• The value of NGBN
• NGBN Challenges
• Case Study
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Page 13
Case Study: Singapore NGNBN Target & Plan
Dr Lee Boon Yang : Minister of Information, communication and the Arts.
“ New business model, solution and innovation of new service will make Singapore more competitive in international
environment, promote economic development and remove the digital divide.”
S$1bn support from Government
NGNBN Target
Target Market
NGNBN
1. Residential 50M -1G
2. Enterprise100M -1G
User development plan by2015
target
Residential：330’000
Commercial：80’000
Retail Service
Providers
RSP
3. Public
Active Network
Coverage Plan
OpCo
S$250m
NetCo
Sep 09
Dec 10
Jun 12
5%
60%
95%
Passive Network
Source: IDA Singapore
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S$750m
NGBN spurs industry development
Objectives of Singapore iN2015
#
1
Objectives of China FTTX in 2012
in the world in infocomm value adding to
economy & Society
2x
increase in Infocomm value
to S$26bn
3x
increase in Infocomm
export to S$6bn
80,000 additional Jobs
90% home using BB
100% PC Penetration
>80M
fiber-optic broadband port
8M
Bandwidth (bps) in city
2M
Bandwidth (bps) in rural area
100M
Bandwidth (bps) in business building
>150B
Investment in FTTX (RMB)
>50M
New added BB users
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Thank you
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