Security Level:
2015/4/8
Simplified Network, Enriched Experience
Huawei Vision of Broadband Evolution
Dec. 2011
HUAWEI TECHNOLOGIES CO., LTD.
Huawei Confidential
www.huawei.com
Fernando
Vargas B.
CONTENTS
• Broadband Value
• Broadband Industry Tends
• Huawei suggestions for Ultra Broadband
HUAWEI TECHNOLOGIES CO., LTD.
Huawei Confidential
Page 2
The New Forces of Broadband:
Society, Government, Openness


Open
Broadband




Policy changed: competition
encouragement to network
construction encouragement
Global NBN: 50+ countries,
100+ billion
Open Internet and broadband access
Open content and communication
Open business & competition
environment
Open brings tremendous opportunities
National
Broadband

Social Broadband
Broadband networks will be as critical
to social and economic prosperity as
networks like transport, water and
power”, bandwidth becomes a new era
of "black gold “
《Broadband Declaration of U.N.》 －－” Broadband Everyone, Broadband Everywhere ”
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Page 3
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
HUAWEI TECHNOLOGIES CO., LTD.
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(2) Strong growth in new services
Lars Nybergu， President and CEO of
TeliaSonera
Page 4
NGBN is valuable for the economy, society and
industry.
National Broadband Networks Deployment
0
0
Impact
on0 GDP 0
Garnter (USA)
2.5%
Government (Korea)
1.3%
Government (Australia)
0.8%
Criterion Study (US)
0.8%
EIU (NZ)
0
3.9%
CEBR (Scotland)
Brooking Institute (US)
Socio-Economic Benefits
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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Page 5
CR Government National Broadband Plan
Fuente : Estrategia Nacional de Banda Ancha
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Page 6
CR Government National Broadband Plan
Fuente : Estrategia Nacional de Banda Ancha
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Page 7
CR Government National Broadband Plan
Fuente : Estrategia Nacional de Banda Ancha
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Huawei Confidential
Page 8
Fuente : Estrategia Nacional de Banda Ancha
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Page 9
CONTENTS
• Broadband Value
• Broadband Industry Trends
• Huawei suggestions for Ultra Broadband
HUAWEI TECHNOLOGIES CO., LTD.
Huawei Confidential
Page 10
NGBN is Coming
Fast Increase of Video and Mobile Data Traffic
Incumbents’ Broadband Plan
60000
Country
单位：PB/月
Unit: PB/M
Mobile Data
50000
47% of network
traffic increase per
year
40000
30000
2009-2017
100 Mbps
90%
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.
HUAWEI TECHNOLOGIES CO., LTD.
Coverage
Australia
10000
2009
Speeds
Business
20000
0
2008
Program
Duration
Huawei Confidential
Page 11
3 biggest changes in fixed network lead to ABC
problem
Now & Tomorrow…
Past
Video
1
WEB

ARPU:
A
>90%
traffic is
Video
Bandwidth:
Fiber
2
Copper

300mn new
FTTX subs
to 2015
B
All-IP
3
HUAWEI TECHNOLOGIES CO., LTD.
TDM

Huawei Confidential
Huge
OPEX
increment
How to generate
new revenue?
C
Page 12
How to keep the
technology in line
with bandwidth
increase?
Cost:
How to restrain
the cost?
A
ARPU: Value is shifting towards Device &
Cloud
Value shifting…
Higher Value in the device & cloud
Cloud
Revenue
(2009)
Market Value
(13 Apr, 2010)
$23.65 bn
$182.1 bn
Cloud
Pipe
Network
pipe
Device
$123.0 bn
$155.7 bn
Device
$219.7 bn
$42.9 bn
Source: Google finance, Apr 2009
HUAWEI TECHNOLOGIES CO., LTD.
Personal Device
Home Device
Business
Device
How to extend new revenue source to
Device & Cloud while enhance the golden
pipe’s profitability?
Huawei Confidential
Page 13
Bandwidth: Ultra broadband era is coming
B
50-100× Traffic increase
50-100×
Traffic
130
90
64
16
Moore's law
×2 / 18
25months
1
-30
2008 2009
2010 2011 2012 2013
Global traffic
128
IP traffic:
×3 / 18
months
50
10
90% traffic is Video
90%
Video
Web/mail, data,
business, etc..
40%
Video
Video
2014 2015
How to satisfy the traffic increasing ?
How to adapt to the video traffic growth?
Source: Broadband World Forum Europe 2009
HUAWEI TECHNOLOGIES CO., LTD.
Huawei Confidential
Page 14
Video traffic drives hundred times of bandwidth
requirement
Web/Mail
Low bandwidth, intermittent traffic,
concentration ratio 16 : 1
Video
High bandwidth, continuous traffic, concentration
ratio 2 : 1
2009 HSI+SDTV
2005 HSI
Core traffic
/user
Metro traffic
/user
2:1
1:1
16:1
1M
x262
x35
0.06M
Concentration
Access traffic
/user
x67
0.03M
Concentration
2012 HSI+HDTV
1:1
x134
2:1
2:1
x6
x20
Core network moves to 100G Era, Less concentration rate, network layers converged
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Huawei Confidential
Page 15
Fiber and Copper co-existence, GPON growing
rapidly and ADSL/VDSL evolving continuously
Global FTTx Distribution
GPON Port Shipment
5.0 M
DSL Port Shipment
16.3M
15.4M
14.4M
65%
13M 12.8M
FTTH / FTTB
8%
27%
2.4 M
VDSL
FTTx + LAN
Source: IDATE, FTTx Watch Service 2010
0.7 M
• GPON is globally deployed in USA,
European, China and Asia Pacific.
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Huawei Confidential
• VDSL & ADSL kept steady shipments
Page 16
C
Cost: Video and IP is driving revolutionary
changes in network
CAPEX
OPEX
Web  Video
TDM  IP
Access to Metro Concentration Rate
16:1
Traffic/user
Core
2:1
Concentration
30%
Service Provisioning Time
Troubleshooting Time
+500%, 5min to 30min
+300%, 0.5hour to 2hour
Network OPEX
20%
2005 Web 2009 Web+SDTV 2012 Web+HDTV
0.03M
x42
2:1
Concentration
Metro
Network CAPEX
0.06M
x164
1:1
x22
16:1
1:1
x84
2:1
2:1

Access
1M
x6
x20

Network OPEX
Others OPEX
Source: Operator’s annual reports, CT
HUAWEI TECHNOLOGIES CO., LTD.
Huawei Confidential
Page 17
CONTENTS
• Broadband Value
• Broadband Industry Tends
• Huawei suggestions for Ultra Broadband
HUAWEI TECHNOLOGIES CO., LTD.
Huawei Confidential
Page 18
Structural Cost Saving
Bandwidth
ARPU
Broader wireline & shorter wireless will change
network architecture dramatically
1892~2005
PSTN-Dialup-DSL
2005~20XX
FTTx
ADSL2＋
6M
3Km
Broader
Wireline
Historic architecture
change in 100 years
VDSL2 30a
50M
30m
AGG
CO
CPE
CO
MDU
10Km
3Km
1973~2010
Analog-GSM-HSPA
CPE
300m
VDSL2 17a
30M
800m
2010~20XX
LTE/Wifi
UMTS
Voice
630m
Shorter
Wireless
Historic architecture
change in 30 years
VDSL2 8B
20M
1.5m
UMTS
128K
403m
HSDPA 1.4M
275m
MSC
xGSN
BSC
BS
CPE
AGW
1Km
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eNB/AP
CPE
100m
Page 19
UMTS
384K
306m
Structural Cost Saving
Bandwidth
ARPU
Deep Fiber & retreat of copper/wireless will enable
Network Convergence with 3 dimensions
Media
Current
Future
Service
Metro Aggregation
Service Edge
Aggregation
Mobile
Copper
Fiber
Metro Core
Horizontal : Full Service
Access
Premise Network
?
Lateral : Fiber to the X
FMC-based
Full Service
Vertical : Simplification
Metro Core
Access



Fiber goes as far as possible with retreat of copper and mobile
A unified network serves all kinds of customer segments
A simplified network helps carriers to reduce TCO significantly
HUAWEI TECHNOLOGIES CO., LTD.
Huawei Confidential
Premise Network
Architecture
Page 20
Mobile
Coppe
r
Service Edge
Fiber
Service
Architecture
Media
Structural Cost Saving
Bandwidth
ARPU
Simplified Architecture with SingleFAN Reduce 35% TCO
Subscribers Remote Site
Polarized& Flat
1M
Aggregation
PoP
Edge
Core
80
60
7
2
4000
Architecture
Central Office

Internet
Copper
High capacity&
BRAS
SR
LSW
less sites

IPTV/VOD
DSLAM
Converge with
Remote Site

Terminal-like

Intelligent
Core Router
VOIP
SBC
SDH
aggregation
Router
Existing Broadband Network Architecture of Fixed Operator - 5 Layers
500
50
4
Full Service Access

Residential

Business

Mobile backhaul
Internet
xPON
WDM
FTTH/B/C
FTTM
FTTO
OLT
MSCG
Core Router
Converged
IMS
Future ALL IP & FMC Based Full Service Network Architecture – 3 Layers

Key features: large capacity OLT, seamless MPLS, 48p P2P board, 1588v2, high availability
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Page 21
Structural Cost Saving
Bandwidth
ARPU
“Easy ODN” save 45% ODN TCO
ODN cost in
FTTx
Investment
Drop cable
CO
Patch cord
DP
ODF
4
1
78%
Closure
OLT
2
Feeder cable
Distribution cable
Complex fiber connection,
Mess to handle misconnection
Complicated trench, duct,
fiber laying environment
Time consuming
fiber dropping
iODF for Mass Fiber Management
Speed up Cable Laying
Fast Drop Cabling
Fiber Blown Micro Trench
Vertical fiber
deployment
High soft fiber
Pre-connected Solution
Pre-terminated closure
Zero Fiber connection info error
No man power for connection
information input
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TECHNOLOGIES
CO., LTD.
HISILICON
SEMICONDUCTOR
Page 22
3
Multi equipment, mess
wiring, easy broken fiber
Integrated Indoor deployment
Integrated ONT Closure
Patent Design Access Terminal Box
Cost
Smooth Bandwidth Upgrade
ARPU
Continuous Optimization of Copper Access
VDSL2
Dynamic
Spectrum
Management
L2
50Mbps@300m
65Mbps@300m
Copper access
evolution
Dynamic
Spectrum
Management L3
Bandwidth



DSM L2
VDSL2
2009

DSM L3
2010
2012
Copper: Continue
innovation, increase
performance
HUAWEI
TECHNOLOGIES
CO., LTD.
HISILICON
SEMICONDUCTOR


1588v2 over DSL
A/V auto-sense
enable smooth
migration from
ADSL to VDSL

Industrial 1st DSM
L2 prototype
100Mbps@300m


Page 23
DSM L3 Vectoring
tech
Crosstalk channel
identification
algorithms
Cost
Smooth Bandwidth Upgrade
ARPU
NG-PON Ready, Smooth Evolution with SingleFAN Platform
Bandwidth
 WDMPON:
10G/10G,
~100KM
Smooth & Seamless migration from GPON to 10G-GPON
ONT
OLT
GPON
1490nm
 XGGON:
10G/2.5G,
~60KM
2010
10
G
P
O
N
10G GPON
card
ONT
Now
10 GPON ONT
Reusing ONT
Reusing ODN network
OLT
ONT
OLT
WBF
Reusing EMS
GPON
ONT
GPON ONT
OLT
GPON
ONT
ONT
WBF
ONT
WDM
coupler
bandwidth up to 40G/slot
 Compatible
ONT
ONT
ONT
Future
GPON ONT
10G GPON
 High
10G GPON
1577nm
2015
Reusing OLT platform
G
P
O
N
ONT
ONT
 GPON:
2.5G/1.25G, ~60KM
2009
OLT
ONT
ONT
GPON
1490nm
with 10G GPON
10G GPON
ONT
ONT
ONT
ONT
 Reuse
the same ODN network
 Multiplex
10G GPON and
GPON wavelengths
 GPON
ONT with WBF to block
 Reuse
10G GPON wavelength.
 10G
GPON ONT with WBF to
Huawei Confidential
the same EMS
 Minimize
operational &
provisioning change
block GPON wavelength
HUAWEI TECHNOLOGIES CO., LTD.
10 GPON ONT
Page 24
Cost
Smooth Bandwidth Upgrade
ARPU
G.hn + WiFi for bandwidth distribution within home
Solution:
• ONT will support G.hn
interface for power line/ phone
line and coax cable
communication..
G.hn WIFI
AP
G.hn/Eth
Adaptor
G.hn IP Phone
G.hn
IP Camera
Storage
ONT
Analog
Phone
Analog
Phone
G.hn/Eth
Adaptor
WiFi
Power Line
Phone Line
Coax Cable
Ethernet Cable
• Eliminate the dissatisfaction of the end users on the issue of home network interconnection.
• Ubiquitous connectivity facilitate the use of ultra high bandwidth.
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Page 25
Connection Device - WiFi Repeater
WS311
WS311
• Commercial Launch: 2010, Q2
WiFi Ethernet Adapter
• 1*LAN
• WiFi 802.11n
• WiFi AP, client, repeater
11n HGW
WS20
• Commercial Launch: 2010, Q3
WiFi repeater
• WiFi 802.11n
• Built-in antenna,1T*1R
11n HGW
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WS320
Page 26
Cost
Bandwidth
Golden Pipe help ARPU increase
Managed Life & Managed Work to Extend
Operators’ Position in the value chain
Operators’ Business
Partnership
Cloud
Content &
Long Tail Apps
Backbone
Value
increasing
Metro
Partnership
Access
Devices
Device
Value
increasing
Operators
Managed Life + Managed Work
Golden Pipe
2 sides business model
Create value from
upstream 3rd parties



Create value from
downstream end users
Digitized Advertisement,
Transaction fee
Computing & Storage
Resource leasing, Hosting…
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


Huawei Confidential
3-play: Voice, Internet, TV
Music, Game, Multimedia …
One-Stop-Shop
Page 27
Cost
Bandwidth
Golden Pipe help ARPU increase
iVASE to improve the experience of video service
Cache moving down
Phone
PC
STB
FTTH
OLT
BRAS
IPTV
Fault
Visualization
Performance
Visualization
iVASE Cards
Route
Visualization
iVASE: Integrated Value-Added Service Engine
GoP of HDTV is more than 2 Seconds.
How to improve experience and reduce
bandwidth consumption when zapping?
Fast Channel Change
within 0.5 second
(I-Frame Cache)
HUAWEI TECHNOLOGIES CO., LTD.
HDTV is more sensitive with packet loss
(<10e-7). WiFi/PLC used for home
interconnection even cause more loss.
HDTV is one of real-time service,
request quick troubleshooting and
fault-recovery.
Re-transmission,
tolerate 20% of
packet loss
Integrated Real-time
Service Monitoring
Huawei Confidential
Page 28
SingleMetro, Traffic Optimization
Trade Storage for Bandwidth
Integrated Video Cache
DPI Optimizes P2P Traffic
Remote Peer
DPI
Backbone
STB
Metro
OLT
Edge R
DPI
Edge R
Metro
DPI
FCC / RET / Uni-cast
30% BW saving (BRAS)
50% BW saving (UPE)
Local Peer
60% BW saving (OLT)
• Video: Built-in video caches store 1% content that attracts 50% users
• P2P : DPI limits backbone P2P traffic, preferable local traffic exchange
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Page 29
Local Peer
SingleBackbone, IP & Optic Synergy
Multi-Layer Aggregation
Router Cluster
IP
OTN
Bandwidth Cloud
Opt
Point to Point DWDM
Bypass model
Hop by hop model
• Core Router Cluster+ WDM/OTN Cloud make core network more reliable & zero waste
• IP&Optical Synergy -> Traffic optimization and less core router ports usage.
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Page 30
SingleOSS, Visualized IP OAM
Service Topo
U2000
Access
MSAN/FTTX/CSG
Correlative
IP Network
Router/Switch/BRA
S
Transmission
OTN/WDM
CSG
AN
Tunnel Topo
UPE
PE AGG
OLT
Switch
Correlative
CORE
Metro Ethernet Aggregation
IP Edge
Core Router
OTN/WDM
Physical Topo
• E2E NE Management, E2E Fault Location, E2E Service Provisioning
• Visualized IP network management, simplified IP network O&M
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Page 31
SingleFAN: Moving the Curves to Profitable Position
B
SingleFAN
A
B
A
C
C
Single Full-service Access Network
Unified NETWORK
Unified PLATFORM
Unified OPERATION
Enrich experience
Simplify network
Improve efficiency
Any service Any scenarios
Any media Any era
Fast deployment Easy operation
Residential
Mobile BB
FTTC
FTTB
Business
FTTH
Copper
Fiber
wireless
6~10M
20~50M
>100M
One for all
All in one
Golden Pipe help ARPU
increase
Smooth Bandwidth Upgrade
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Fast & Easy
Structural TCO Saving
Page 32
NGBN “Big 7” addresses the ABC Issues
SingleBackhaul, Any Media
E2E Unified NMS
2
Service Quality
Management
SingleMetro, Traffic Optimization
Microwave
Mobile
E2E Resources
Management
3
Fiber
5
BRAS
SingleOSS,
Visualized IP OAM
SingleBackbone,
IP & Optic Synergy
4
PE
Infotainment
MDU
Managed
Life
ODN
10GE/OTN/WDM
OLT
7
1
Multi-Media
Agg egress
Agg ingress
RNC
Copper
Managed
Work
OTN/WDM
xGSN
Router
BSC
IP DSLAM
ICT
SingleFAN, All in One
Extend Pipe,
Create Value
1 2 3 4 5
6
Lower
Cost
HUAWEI TECHNOLOGIES CO., LTD.
“Triple-Terabit” enables E2E Ultra Broadband
6
Enable
Bandwidth
Huawei Confidential
7
Page 33
Improve
ARPU
Thank you
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Copyright©2009 Huawei Technologies Co., Ltd. All Rights Reserved.
The information contained in this document is for reference purpose only, and is subject to
change or withdrawal according to specific customer requirements and conditions.