Lessons learned rolling out FTTH networks
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Presentation about the lessons TKF wants to share on rolling out FTTH networks this presentation was held at the CANTO conference, 2010 in Curacao it handles various organisational, economic and technical tips and tricks as to what to consider rolling out a fiber-to-the-home network as an operator.
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Lessons learned rolling out FTTH networks
- 1. FTTH lessons learned Jan Klamer July 2010
- 2. Agenda Introduction Fiber changes organisation Cooperation is key FTTH topologies Some economics Marketing & bandwith Do’s & Don’t s
- 6. FTTx network topology telecom house exchange backbone distribution network access network access network access network business industrial houses PON vs PtP In-house NIP
- 7. Some economics Revenues: 400 – 4000/yr
- 8. Marketing and bandwith Whatever bandwith you offer, they will use it! Disney prod.: “we’ll know how to flood 1 gbps with games” Potential bandwith of 1 single fiber; 1*10 ^ 18 bps 2400 Baud 14k4 ISDN ADSL 5 Mb ethernet Fast ethernet gigabit RS232 8080 uP Intel 80286 Coppermine 800 MHz Where do you want us to put it?
- 10. Thank you Jan Klamer [email_address] http://www.ace-fibreoptic.com
Notas del editor
- This presentation is made by Jan Klamer. Please read, print, copy to anybody you want – but without alterations to the original! It handles some things we’ve learned at TKF while being involved in many different FTTH projects around the globe. This presentation was held firstly at the Carebbean Association of Telecom operators ‘ conference in 2010.
- The content of this presentation covers the following subjects: A short introduction of myself – jan klamer Explenation of the statement why fiber changes the organisation of a telco Why you should cooperate while rolling out a new infrastructure A word about the different topologies you could choose from and the impact A few key economic figures Why you need to install so much bandwith A summary of it all in a set of do and don’ts
- Jan Klamer has experience in telecommunication for over 22 years, always in developing new products and concepts. He has a broad interest and graduated with a thesis on performance appraisal. He has been on the basis of several Broadband rollouts and field trials in different countries. He is the inventor of a patented geothermal climatisation system. Jan works for TKF, part of TKH Group NV, is married and has 3 adult children. Coming from holland he actually uses wooden shoes – and uses the flat land to rollerblade. And oh – you cant rollerblade on wooden shoes!
- Rolling out new infrastructure like fiber has big impact on your organisation. The first and foremost thing is that it’s not a service. Its not even linked to one service. It really is the carrier for many things we have yet to invent. So supplying one customer the connection has little to do with what services this customer will subscribe to. Hence your organisation should not couple these activities internally either… The incumbant telco’s probably do not want to hear this, but unbundling fibre – if obligatory – is not as easy as it was with telephony-grade copper. We’ve seen crazy designs of manipulation points with 7 different doors for the energyprovider, different service providers, different network operators…. And to unbundle a network to provide access to a third party AFTER it’s been build is not an easy thing. This probably is not the best pick of words in englisch – but what i’m meaning here is that a fibre connection is not something the average customer will be able to handle. While changing the location of a phone-outlet is easy with DIY materials, not so with fibre. So you need to think about that while installing the customer premises connection. And prethink who will service it. Again, the delivery of the infrastructure is a different thing than the service – and that goes at both ends of the line. The layers of the network like service, switching and infrastructure all need their own operational staff to maintain. Think not in telephony and internet – or even triple play. It’s all IP and you should not make a difference as far as the infrastructure goes. Within some time you wont even know a difference anymore! Then this picture shows a site where the old TV network is done over fibre but on an analog way. With the same limitations as the cable-tv network. Such a pity, as when it had been levereged to IP it would have saved infra-cost and held a bigger potential.
- There are a set of learning points as how to build a new network. The thing is that nobody today really has lived back in the days people started building the telephony network. It has grown and grown, but not build from scrap. First of all, as FTTH is a new network, you need expertise to make planning, request permissions, engineer materials, organise logistics, do communication with all parties concerned. TKF knows a lot about that – and what can go wrong there. While you may be used to define and plan yourself, with new generation networks that appears not to be the best way – so learns hard practise. There is just too much you’ve never done before. Arcadis is a large dutch consultancy company – has evaluated several early FTTH projects. The operator had designed the network, done negociations for material purchasing and planning. None worked out really well; technical incompatibilities popped up, things were not there at the right time, congestion formed doing the trench-digging, customers did not give entrance to technicians. The best way – thus Arcadis – is to seek cooperation with the environment – to acheive better acceptance of this major change. And seek partners in a manufacturer and constructor to do “design and construct” – as a total project. This gives drive to all parties for an economic and fast rollout.
- This picture shows a typical network architecture with the common hierargical structure. Two things are worth thinking over – first there is the big discussion about either GPON or point-to-point. It seems like a dead giveaway for a cable company like TKF to say that you need to install more fibre, but really the price of fibre was always the argument for creating a shared-fibre network like GPON. These prices have dropped with over a tenfold in the last decade, and that argument has become totally void. There is a small argument about less floorspace in the CO or POP for GPON but really that cost is moved to further in the network for installing splitters. Maybe they do not physically have a FLOOR, but they sure need space in some shape or form. Then GPON is as good as impossible to unbundle at the physical level. And if small or mid-size companies are geographically in urban area – you’ll probably plan them to have GPON too and you’ll never be able to offer them anything else like dark fiber or whatever… Then I ponder again on to the network interface at home. Being content or dissatisfied has everything to do with setting expectations. While some operators find they are responsible upto the telephoneset itself – things may become blurry when it comes to new networks. Are you then also responsible for the personal computer? It’s mail-settings? The TV set and remote control? The speakers? If not, the router then? The WiFi set? The network interface? The datacable? I think you need to make a clear network interface point. Beyond that on the customer premises, there is another set of services – supplied by another department or company. If that is clear from day 1 of your offering, people will at least not be dissatisfied because expectations are wrong. And there is a lot of work (read money..) to spend on inhouse networking!
- There is no way I can go through the whole business plan and make a generic one for all FTTH projects. Certainly in the carebbean area the local differences in insatllation cosst and what customers can or want to pay for certain services. First experience has showed that there is hardly any “scale of economics” in the customer concentration per point of presence. Also do not let financial tricks fool you. There are financial experts that focus on saving on real estate, to free money for other investments. Selling a building that once was your CO does not save money in the end – because you will end up with many more small patches of real estate. And all of them need the same facilities like power, security, climatisation, cleaning, etcetera. Also the breakdown of those faciliting parts does not really change if you calculate cost per customer. We know, as we have been heavily involved in building and supplying those facilities in many shapes and sizes. The biggest amount of money goes into the construction cost – wich is labour. Some operators hesitate to do investments because the payback time is longer than 3 years and thus the shareholders find it difficult to accept. But then again- rethink the writeoff times of all the parts – and i do not think you will be installing yet another infrastructure the next 20 years – do you? As revenues vary by service, this is not comparable to the investment telco’s need to make. Obviously some business cases are very difficult – if without operational cost only the capex writeoff is 300 dollar and revenues for simple services only just cover that. But if you do not invest in the infrastructure, you will never be able to offer more advanced services! And not make the money from that either….
- There is a funny thing about this graph… Probably you know that Mr. Moore invented this law a long time ago – stating that the computing power will double every 18 months. He stated that in a year many great things were born (like me… ). Nielsen discoverd that the interent access speeds have a similar trend. When humble me was productmanager for a line of LAN cabling systems, I compared graphs about LAN speeds with Nielsen and Moore and discovered they are highly analog to each other. There is a physical limitation of copper “breaking” the lines and move to fibre in a certain future. Now the funny thing is that I made this graph in the year 2000. We are 10 years down the road from then and the graph is still correct. Bottom line is; we have no clue what we will do with the networks, what the “killer applications” will be, but YOU. DO. NEED.FIBRE. (period)
- The summary of the topics just covered in a series of do’s and dont’s…. Do not think in services as way to define the network or how to roll out and how to structure your organisation. Think of how you could unbundle your network on forehand – before regulatory bodies force you to. Cover the definition of how you treat and service the inhouse network and equipment Before and while rolling out the network, cooperate with the social environment to gain acceptance and help Leave the design and construct of the network to a constructing company and an experienced manufacturer of systems like TKF is. Do not let your businesscase be fooled by financial tricks of selling here and forget to buy there… Do not base your needed bandwith assumptions on the current known set of services!
- Thank you for your attention.