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Gunnar Alcatel Lucent Open Networks
1.
Scandinavian Open Access
Networks 5 years of success …and a few lessons learned Gunnar Florus <gflorus@alcatel-lucent.com> Manchester, June 22nd 2009
2.
1
Investing in Fibre Market Drivers and Services 2 | Manchester Open Networks | June 2009 Copyright © 2009 Alcatel-Lucent. All rights reserved.
3.
Mass-market multimedia devices
are changing our personal lifestyle High-definition TV sets MP3 players (50% of TVs purchased are HD-ready (35 Mio sold in ’ 06, (5% in ’ 05)) 30% growth) NG game consoles Digital photography w/Internet (20% of BB subs used (PS3, Xbox 360, Wii: Nintendo Internet upload services) forecasts 16M units in ’ 07) Multimedia-capable PCs Digital cameras (25 Mio sold in ‘ 06, (Owned by 60% of 10% growth) households end ’06) Heavy Reading FTTH Market in Europe 2006-2011 Consumer-focus Multimedia applications drive the demand for UHS broadband Note: UHS = Ultra High Speed (optical fibre networks); ADSL/ADLS2+/VDSL/VDSL2 are considered as VHS (Very High Speed) networks 3 | Manchester Open Networks | June 2009 Copyright © 2009 Alcatel-Lucent. All rights reserved.
4.
The service-oriented economy
and information society High-definition images Network-hosted exchange applications Tele-assistance, Remote back-up, Tele-monitoring storage Interactive remote Large file-sharing learning Tele-working Home and premises video surveillance Citizen-focus Business-focus UHS broadband as engine for local social and economic development Note: UHS = Ultra High Speed (optical fibre networks); ADSL/ADLS2+/VDSL/VDSL2 are considered as VHS (Very High Speed) networks 4 | Manchester Open Networks | June 2009 Copyright © 2009 Alcatel-Lucent. All rights reserved.
5.
Innovative services with
‘no-limit’ UHS broadband open networks Residential Services Business Services Public Services Ultra High-speed Internet Data VPN Public safety Multi-stream IPTV IP Telephony Emergency Interactive TV Collaboration tools Healthcare VoIP Mobility / Telecommuting Home Healthcare Multi-player gaming Campus/building surveillance Information Tele-assistance “Hospitality” services Education Home surveillance Online learning High crime area CCTV Security & Alarm Services Utility metering Public transportation (rail, road) Web services Secure municipal network One-stop administration portal 5 | Manchester Open Networks | June 2009 Copyright © 2009 Alcatel-Lucent. All rights reserved.
6.
2
Open Access Networks A Business Model that Works 6 | Manchester Open Networks | June 2009 Copyright © 2009 Alcatel-Lucent. All rights reserved.
7.
Open Network structure,
roles and responsibilities End user Right to Choose! Provides end-user support for delivered service Retail Service Owns the service and the application servers Provider Operates the service Rights to offer services on Network Provides customer Operator portal support for service delivery, connectivity Owns the network (edge/core/access) equipments and network issues up to the customer premises Network operator Operates the network Rights to operate Manages the delivery of the services on behalf of the network the retail service providers Provides connectivity to end-users & retail service providers Provides customer support for fibre Provides end-user portals for service subscription (self-registration & auto-provisioning) Interconnects the network to the Internet backbone and to other telco networks Design and build the network Infrastructure owner Manages site & civil engineering work Rights of way Owns the fibre 7 | Manchester Open Networks | June 2009 Copyright © 2009 Alcatel-Lucent. All rights reserved.
8.
The Layered Model
– Do what you do best! End-user Retail Services (residential, public & business) Active Network (network equipments, business & operation support) Passive Infrastructure (trenches, ducts, fibre) Retail Service Provider Retail Service Provider Integrated or separated? Active Network Provider Active Network Provider Passive Infrastructure Provider Passive Infrastructure Provider 8 | Manchester Open Networks | June 2009 Copyright © 2009 Alcatel-Lucent. All rights reserved.
9.
Open Networks –
Just how Open is Open? End-user Retail Services (residential, public & business) Active Network (network equipments, business & operation support) Passive Infrastructure (trenches, ducts, fibre) 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. 9 | Manchester Open Networks | June 2009 Copyright © 2009 Alcatel-Lucent. All rights reserved.
10.
Open Networks –
End to End Architecture Scalable and distributed subscriber, service and application policy enforcement IP IPTV communication Providers providers Optical Centralized policy transport management Fiber High Speed Internet Digital providers home IP/MPLS RG Broadband Broadband Other Access Service Router residential Service service Nodes gateway Aggregator providers for Optical core xDSL, PON, Residential Ethernet Business WiMAX Public Integrated network, service and subscriber management 10 | Manchester Open Networks | June 2009 Copyright © 2009 Alcatel-Lucent. All rights reserved.
11.
3
A look to Sweden Swedish City Networks 11 | Manchester Open Networks | June 2009 Copyright © 2009 Alcatel-Lucent. All rights reserved.
12.
The Swedish broadband
market • 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 S we de n , amo ng le ading FTTH c o untrie s FTTH s ubs c ribe rs – e nd ‘05 CITYNETS 12 | Manchester Open Networks | June 2009 Copyright © 2009 Alcatel-Lucent. All rights reserved.
13.
The Swedish CityNet
Market - 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 13 | Manchester Open Networks | June 2009 Copyright © 2009 Alcatel-Lucent. All rights reserved.
14.
Swedish Urban Network
Association 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/ Bredband &Samhälle 14 | Manchester Open Networks | June 2009 Copyright © 2009 Alcatel-Lucent. All rights reserved.
15.
4
Things we’ve done and lessons learned 15 | Manchester Open Networks | June 2009 Copyright © 2009 Alcatel-Lucent. All rights reserved.
16.
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 building block 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… 16 | Manchester Open Networks | June 2009 Copyright © 2009 Alcatel-Lucent. All rights reserved.
17.
Some Further Examples
P2P Fibre BPON GPON 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) 17 | Manchester Open Networks | June 2009 Copyright © 2009 Alcatel-Lucent. All rights reserved.
18.
www.alcatel-lucent.com
www.alcatel-lucent.com 18 | Manchester Open Networks | June 2009 Copyright © 2009 Alcatel-Lucent. All rights reserved.
19.
Business Model Value
Chains Value chain Appoints Infrastructure Network IP-bitstream access Retail Service Dark Fibre Services End-user Owner Operator Providers Rights of way Rights to operate Rights to offer the network services on Network Wholesale Operator portal Ethernet IP-bitstream access offer Model Revenue streams End-user Service fees End-user $ Retail Service Retail Service Any Service Connection fees Providers Providers Provider $ Network fees Network Independent $ Network Operator Operator Operator Infrastructure Infrastructure fees Muni/Utility Owner $ (Accommodation $ Infrastructure or other utility) Owner 19 | Manchester Open Networks | June 2009 Copyright © 2009 Alcatel-Lucent. All rights reserved.
20.
Key Drivers for
Municipalities 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 20 | Manchester Open Networks | June 2009 Copyright © 2009 Alcatel-Lucent. All rights reserved.
21.
Key Drivers for
Utilities 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 21 | Manchester Open Networks | June 2009 Copyright © 2009 Alcatel-Lucent. All rights reserved.
22.
www.alcatel-lucent.com
www.alcatel-lucent.com 22 | Manchester Open Networks | June 2009 Copyright © 2009 Alcatel-Lucent. All rights reserved.
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