Fiber Access Networks
and
The GPON Standard
David Cleary
VP, Advanced Technology
Calix
david.cleary@calix.com
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Meeting Overview
Agenda
The Need for Fiber Access
The Choices of Access Networks
The GPON Standard
The Market Opportunities for GPON
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Meeting Overview
Agenda
The Need for Fiber Access
The Choices of Access Networks
The GPON Standard
The Market Opportunities for GPON
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The Need for Fiber Access
It’s all about Bandwidth!!!
Video will drive Bandwidth for the foreseeable future
Bandwidth usage doubles every 18 to 24 months
MPEG4 offers some relief (18 to 24 months?)
How Much Bandwidth is enough?
Probably more than you think.
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The Need for Fiber Access
What is special about Fiber Access?
Fiber is fundamentally different from copper
We are at the limit for bandwidth over copper
 Double the bandwidth and halve the reach
We are decades away from any limitations on fiber
 We are at 2.4 Gbps today
 Fiber can support over 100 Terabits per second without reducing the
reach
Eventually, every operator will deploy fiber...
It’s just a matter of time
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Meeting Overview
Agenda
The Need for Fiber Access
The Choices of Access Networks
The GPON Standard
The Market Opportunities for GPON
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The Choices for Fiber Access
There are 2 choices for Fiber Access:
Point to Point
Point to Multi-point
Point to Point is sometimes called Active Ethernet
Point to Multi-point is called PON (passive optical network)
Active
Ethernet
Switch
PON
OLT
Passive
Splitters
ONT
ONT
ONT
#1#1#1
ONT
#1
...
ONT#192
ONT #1
ONT
ONT
#1#1
ONU
#1
... ONU#192
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The Choices for Fiber Access
PON is analogous to wireless telephony (cellular)
Active Ethernet is analogous to wireline telephony
Active
Ethernet
Switch
PON
OLT
Passive
Splitters
ONT
ONT
ONT
#1#1#1
ONT
#1
...
ONT#192
ONT #1
ONT
ONT
#1#1
ONU
#1
... ONU#192
Both CapEx and OpEx cost savings favor PON
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Meeting Overview
Agenda
The Need for Fiber Access
The Choices of Access Networks
The GPON Standard
The Market Opportunities for GPON
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The Challenge
Edge/Core Network
Equipment
Low Volume
Small Customer pool
High customer influence
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The Challenge
Edge/Core Network
Consumer
Equipment
Equipment
Low Volume
Small Customer pool
High customer influence
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High Volume
Enormous Customer pool
Low customer influence
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The Challenge
Edge/Core Network
Access Network
Consumer
Equipment
Equipment
Equipment
High Volume
Small Customer pool
High Customers influence is desired
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Developing the Standard
The first step to writing a standard is to choose the
Standards Body
The 2 primary players for networking standards are:
IEEE (Institute of Electrical and Electronics Engineers)
ITU (International Telecommunications Union)
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The IEEE
IEEE well known Protocols
802.3 Ethernet
802.11 WiFi
802.16 WiMAX
IEEE Membership is diverse
System vendors, chip vendors, optics vendors, industry cunsultants
and academia
IEEE Voting
Each member gets one vote
No limit to the number of votes from a given company
“Personality” of IEEE standards reflect interests of Vendors
Often leads to low-cost solution
Often only hits 80% of market
Often doesn’t produce migration strategy
IEEE standards don’t necessarily reflect Operator
Preferences
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The ITU
ITU well known Protocols
SDH
V 5.2
ISDN
VoIP protocols H.248 and H.323
ITU Membership
Membership controlled by ITU Member-Countries
Membership open to Operators, Institutions, and Vendors
ITU Voting
Voting is through consent
Each company get one vote
Companies can object (but can’t stall process)
“Personality” of ITU standards reflect interests of Operators
Addresses the operator requirements
Addresses the operator constraints
Addresses the service provider’s operational models
Not focused solely on low cost
Duration of Standardization Process relatively short
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The ITU and FSAN
In the late 1990’s a “Clandestine” group of operators
was formed:
Objective: “Global Domination of the Fiber Access Market”
The group called itself FSAN
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The FSAN Committee
FSAN stands for Full Service Access Network
Loosely affiliated with the ITU
Develops all PON standards prior to submission to the
ITU
FSAN membership consists of both operators and
vendors
But operators make all final decisions
Membership of vendors is tightly controlled by FSAN
Operators
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The FSAN Operators
Eirecom
Telia
BT
KPN
Kuwait
MOC
KT
Telus
NTT
Bell Canada
Bezeq
DTAG
Chunghwa
FT
SwissCom
TI
Sprint
SingTel
Telstra
AT&T
Telefonica
Verizon
Qwest
Malta
BellSouth
FSAN Operators represent a world-wide
membership
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FSAN OAN-WG members
Vendors
Operators
AT&T
Bell Canada
BellSouth
British Telecom
Deutsche Telekom
France Telecom
Korea Telecom
Kuwait MOC
NTT
QWEST
Sprint
Telecom Italia
Telstra
Telus
Verizon
Adtran
Alcatel
BroadLight
Calix
Conexant
ECI Telecom
Entrisphere
FlexLight
Freescale
Fujitsu
Hitachi
Huawei
Iamba
Lucent
Mitsubishi
Motorola
NEC
Nortel
Novera Optics
OFN / Oki
LG Electronics
Optical Zonu
Samsung
Siemens
Tellabs
Terawave
Vitesse
Infineon
ZTE
Alphion
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Meeting Overview
Agenda
The Need for Fiber Access
The Choices of Access Networks
The GPON Standard
The Market Opportunities for GPON
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The Market Opportunities for GPON
There are Numerous Market Opportunities for GPON
Lower OpEx
Greater Service Offering
Future-proof investment
The real question is When and Where does it make
economic sense to deploy GPON
The quickest application appears to be the Developer
Market and ‘Smart FTTH’ Communities
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Total U.S. Homes Served by FTTH
1,500,000
1,335,000
1,011,000
1,000,000
671,000
500,000
5,50010,35022,50038,000
Se
p01
M
ar
-0
2
Se
p02
M
ar
-0
3
Se
p03
M
ar
-0
4
Se
p04
M
ar
-0
5
Se
p05
M
ar
-0
6
Se
p06
M
ar
-0
7
0
64,700
322,700
213,000
146,500
78,000
Source: 2007 RVA
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Homes Served by FTTH
by Non-Verizon Service Providers
600,000
500,000
453,000
400,000
376,000
300,000
241,000
200,000
174,000
138,500
100,000
5,500
10,350
22,500
38,000
188,700
64,700
78,000
Se
p01
M
ar
-0
2
Se
p02
M
ar
-0
3
Se
p03
M
ar
-0
4
Se
p04
M
ar
-0
5
Se
p05
M
ar
-0
6
Se
p06
M
ar
-0
7
0
Source: 2007 RVA
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Breakdown of Homes Served:
RBOC versus Non-RBOC FTTH
882,000
RBOCs
All Other Service
Providers
436,000
0
200000
400000
600000
800000
1000000 1200000
Source: 2007 RVA
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FTTH Homes Marketed By Architecture
2,500,000
BPON
GPON
EPON/GePon
Active/P2P
2,000,000
1,500,000
1,000,000
500,000
0
2004
2005
2006
2007
2008
2009
Source: 2006 RVA
Note: 2006 Forecast (2007 Forecast not yet available)
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Competing for Developers
New home developments have become the fastest
growth Fiber-to-the-Home market
Master planned communities
Multi-tenant buildings
Resort communities
New service providers (developer integrators) are
competing in this market against incumbents
Innovative and fast moving companies
Strong IP and project management experience
Strong ties to the developer and builder community
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Overview of the Developer Market
FTTH is now highly desired by
Developers
FTTH communities are most prevalent in:
West Coast (California, Las Vegas)
Southeast (Florida, etc.)
U.S. integrators expanding into
Caribbean
Latin America
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U.S. Developer FTTP Market Size
1.5 million new homes per year are built
in U.S.
 Source: U.S. Department of Commerce
50% are managed by Associations
 Source: U.S. Housing Census.
Half of these communities will deploy
FTTP
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Who is the Competition?
Over 50 companies are now acting as developer
integrators in the United States and the Caribbean
Many have formed partnerships with specific
developers for all their projects
Many companies specialize in security or ISPs
Very low overhead organizations
In most cases these integrators out source one or
more of their services
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Why Developers Choose Integrators
Developers want recurring revenue streams
Incumbents are perceived as unwilling to
share revenue with developer
Incumbent telcos are seen as inflexible
Incumbents are perceived as not delivering
newer service offerings
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What is Required to Compete?
Minimal requirements
Fiber-to-the-Premise architecture
Diverse video channel selection (IPTV or RF)
 News, movies, sports, etc
Voice (TDM or VOIP)
High speed internet 10 Mb+
Additional offerings
Home networking and support
Security systems
Video on demand
Community/member web site
Video doorman and camera integration
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Closing remarks
ICT Infrastructures are best delivered with
GPON and FTTH technologies
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The Power of Simplicity
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