INTERCAI MONDIALE
The Role of Utility Providers in the spread of
NGNs and Broadband
Mark Norris
Intercai Mondiale
ITU-D Regional Development Forum for the Arab Region
"NGN and Broadband, Opportunities and Challenges",
Cairo (Egypt), 13-15 December 2010
www.intercai.co.uk
INTERCAI MONDIALE
Intercai Mondiale
•
•
•
•
•
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Telecom policy
Competitive strategy for incumbents and
market entrants
Regulatory implementation
Tariff and pricing strategies
Privatisation support
Training and knowledge transfer
Business planning and technical support
Technical and financial due diligence
INTERCAI MONDIALE
Presentation Agenda
Why
Now?
What assets
can utilities
leverage?
What are the
options for
market entry?
What are the
likely problems
and issues?
3
Copyright: Intercai Mondiale Ltd. No reproduction without permission
INTERCAI MONDIALE
Why
Now?
What ass ets
can uti liti es
leverage?
What are the
options for
mar ket entry?
What are the
likel y probl ems
and is sues ?
Why now?
•
Political imperatives
– Next generation broadband is a matter of national importance*.
•
Telcos redefining their position: services, IT, infrastructure
– Decline in ‘traditional’ telecom services
– Impact of the Internet and its associated features
– Segmentation of vertical organisations: BT and Openreach,
Telstra
* The OECD report that governments could justify the cost of a National Broadband
Network by using it to cut cost in sectors such as healthcare, education, transport and
energy. On average a cost saving of around 1% in each of these sectors would, over a
ten year period, meet the cost of building the national broadband network.
Copyright: Intercai Mondiale Ltd. No reproduction without permission
4
INTERCAI MONDIALE
What ass ets
can uti liti es
leverage?
Why
Now?
What are the
options for
mar ket entry?
What are the
likel y probl ems
and is sues ?
The Trans-sector future
•
The ‘next generation’ telecoms sector
– Australian national broadband network, Stokab (Stockholm), PPC
(Greece), KPLC (Kenya), H2O (UK) and many more
•
Mature technology for delivering telecoms services over power
and other utility networks
– Optical ground wire, Powerline, microduct
•
Capital needs of existing Telcos
5
Copyright: Intercai Mondiale Ltd. No reproduction without permission
INTERCAI MONDIALE
What ass ets
canWhat
uti litiass
es ets
leverage?
can uti liti es
leverage?
Why
Why
Now?
Now?
What are the
options
Whatfor
are the
maroptions
ket entry?
for
mar ket entry?
What are the
areems
the
likelWhat
y probl
y probl
andlikel
is sues
? ems
and is sues ?
Physical assets that utilities can leverage
Service Provider
Established
Telecom
network
Core Network
Point of
presence
Metropolitan
area network
MSAN//Local
Exchange
/ CO/M
Local loop
(1)
Street
Cabinet
Local
loop (2)
Hand
hole
Typical
Utility Assets
(Electricity)
MV
x
?
HV transmission Substations
network
Potential for
Telecom
application
MV distribution
network
Distribution
centres
x
?
LV distribution Transformer
sites
network
?
KPLC
186k
Enertel
Energis
H2O
(Fibre)
LV distribution
network
LV
poles
?
?
Electricity
meters
Pulaski
(WiMax)
6
INTERCAI MONDIALE
Why
Why
Now?
Now?
What ass ets
canWhat
uti litiass
es ets
leverage?
can uti liti es
leverage?
What are the
options
Whatfor
are the
maroptions
ket entry?
for
mar ket entry?
What are the
are
the
likelWhat
y probl
ems
y probl
andlikel
is sues
? ems
and is sues ?
Other assets that utilities can leverage
•
Operational Support Systems
– Customer relationship management
– Billing
– Established processes
•
Retail outlets
– Shops and established market presence
– Call centres
•
Field staff
7
Copyright: Intercai Mondiale Ltd. No reproduction without permission
INTERCAI MONDIALE
Scope of this presentation
What are the
Why
Why
Now?
Now?
What
What
assass
etsets
uties
liti es
cancan
uti liti
leverage?
leverage?
What are the
options
options
for for
entry?
marmar
ketket
entry?
What are the
What are the
likel y probl ems
likel y probl ems
and is sues ?
and is sues ?
Options for market entry
•
Each market is different
– Level of competition and consumer demand determine likelihood of positive
business case
•
Attitude of the regulator is key
– Regulation determines the scope of activity through the availability of operating
licences
– It determines effectiveness through (e.g. unbundled local loop, number
portability etc)
– It determines the practicality through infrastructure (e.g. mast, duct) sharing
•
The ‘sliding scale’ of market entry
–
–
–
–
Wayleave provider
Dark fibre provider
Carriers’ carrier
Full service operator
Copyright: Intercai Mondiale Ltd. No reproduction without permission
8
INTERCAI MONDIALE
Scope of this presentation
Why
Why
Now?
Now?
What ass ets
What ass ets
can uti liti es
can uti liti es
leverage?
leverage?
What are the
What are the
options for
options for
mar ket entry?
mar ket entry?
What are the
What are the
likel y probl ems
likel y probl ems
and is sues ?
and is sues ?
Technical options for broadband market entry
Broadband
option
FTTN/ VDSL2
Indicative cost
and other costs…
System line cost:
$100 VDSL
(compared to
ADSL’s $50)
Testing, preparing copper plant, street cabinet
(active, so needs power supply), and the fibre to
the node.
FTTH: Ethernet
point-to-point
2 x $25 transceivers
Passive or active architecture. Fibre from MSAN,
Local Exchange (or central office, CO) for each
end user.
FTTH:
Passive optical
network (GPON)
$50 triplexer + 1/32 x
($250 OLT
transceiver +
splitters)
Passive architecture: N+1 transceivers with N
users. Fibre runs from end user to splitter. Optical
Network Termination is powered and may be
indoors or outdoors
9
INTERCAI MONDIALE
Scope of this presentation
What are the
Why
Why
Now?
Now?
What
What
assass
ets ets
uties
liti es
cancan
uti liti
leverage?
leverage?
What are the
options
options
for for
entry?
marmar
ket ket
entry?
What are the
What are the
likel y probl ems
likel y probl ems
and is sues ?
and is sues ?
Example architecture for broadband market entry
Fibre-to-the-Premises (FTTP)
Core
Core
network
network
Backhaul
Overhead
Distribution
Fibre
Detailed decisions......
1.
2.
3.
4.
5.
6.
7.
Star/Ring configuration?
Arrangement of Street
Cabinets/Manholes/Hand-holes?
Access cables joined to main or full run kept in
cabinet until used?
Demarcation at Street cabinet (or equivalent) or
in premises (on wall, as per Cable)?
Cable size – 144/64 etc?
Overhead delivery, standard duct or micro-duct
into premises (blown/buried/pulled)?
Plastic or Glass fibre?
Fibre
Underground
Distribution
Fibre
10
INTERCAI MONDIALE
Scope of this presentation
Why
Why
Now?
Now?
What ass ets
What ass ets
can uti liti es
can uti liti es
leverage?
leverage?
What are the
What are the
options for
options for
mar ket entry?
mar ket entry?
What are the
What are the
likel y probl ems
likel y probl ems
and is sues ?
and is sues ?
Passive elements for broadband market entry
Fibre optic cable
24-144 fibres per cable
Buried or Ariel (ADSS/OPGW)
High capacity & flexibility
Passive network elements
- Splitters (100Mbps/user, 10km route)
- Distribution enclosures (24 fibre)
- Ducts & poles
11
INTERCAI MONDIALE
Scope of this presentation
What are the
Why
Why
Now?
Now?
What
What
assass
ets ets
uties
liti es
cancan
uti liti
leverage?
leverage?
What are the
options
options
for for
entry?
marmar
ket ket
entry?
What are the
What are the
likel y probl ems
likel y probl ems
and is sues ?
and is sues ?
Balance of costs for broadband market entry
Typical Cost breakdown:
•
>80% : Civil works
trenching, ducts,
connectors, enclosures
•
<8 %: Fibre (inc.
installation
•
<12%: Active elements:
equipment costs
Actives
Fibering
Civil works
Location
Japan
North America
(Verizon)
Europe
Fibre
85% aerial fibre,
short drops, Multidwelling units
70% aerial fibre, single
family units (SFUs)
Fibre in
ground
Total cost/
home
$1200
Estimates from
$800 to $1200
$1500
12
INTERCAI MONDIALE
Practicalities of metropolitan and access network deployment
Options
Aerial
deployment
Sample
Fibre attached to
existing M/L
voltage poles
What ass ets
can uti liti es
leverage?
Why
Now?
What are the
options for
mar ket entry?
What are the
likel y probl ems
and is sues ?
Main constraints
Electricity
cable
• Height of the existing poles, in order to
keep the reasonable distance from the
ground at lowest point
• Strength of the poles to sustain adding
weight of the optical cables
ADSS
cable
If clearance
inadequate,
replacement of
existing M/L
voltage poles with
new poles
Underground
deployment
Minimum
Clearance
• Interruption of electricity supply
• Engineers needed for installation
• Absence of schedule for new ducts
• Coverage/range of new ducts
Lay fibre in
planned ducts
LV = 60 cm
Building of new
ducts
MV = 80 cm
Concrete
Power
cable
10 cm
Comms
duct(s) and
subducts
Duct sharing
(If allowed)
• Difficulty of completing works in time
• Cost
• Regulatory position
• Cost/terms of co-location
13
INTERCAI MONDIALE
What ass ets
can uti liti es
leverage?
Why
Now?
What are the
options for
mar ket entry?
What are the
likel y probl ems
and is sues ?
Alternative ducting arrangements
Normal trench
Micro trench
10 cm
Concrete
LV = 60 cm
Comms duct and
subducts
MV = 80 cm
OR...
20 cm
Power
cable
20 cm
10 cm
60 cm
10 cm
20 cm
Well suited to rural
areas (softer dig) and
installation of cable
from street cabinet to
customer
LV = 60 cm
Well suited to urban
areas and installation
of larger cable runs
(e.g. from exchange to
street cabinet
Subduct
MV = 80 cm
Concrete
Power
cable
10 cm
Comms duct(s) and
subducts
Duct
14
INTERCAI MONDIALE
Why
Now?
What ass ets
can uti liti es
leverage?
What are the
options for
mar ket entry?
What are the
likel y probl ems
and is sues ?
Practical considerations for overhead delivery
Configuration 1: street crossing
Configuration 2: pavement
Bracket extensions
Electricity cable
2m
2m
Electricity cable
Minimum
30 cm
Minimum
30 cm
Fibre cable
Fibre cable
6m
10m
5m
10m
Minimum
practical
distance
5.5m
Minimum
practical
distance
Cable sag determined
by tension applied,
distance between poles
and ADSS cable used
Catenary calculations
Needed to assess sag –
possibly in icy conditions!
15
INTERCAI MONDIALE
Why
Now?
What ass ets
can uti liti es
leverage?
What are the
options for
mar ket entry?
What are the
likel y probl ems
and is sues ?
Summary
1) Next generation broadband will have a disruptive impact on the
established telecoms market
2) Government intervention is prevalent and there is support for a
trans-sector approach (as with the ANBN)
3) Utilities have relevant assets
4) There is a range of market entry options but the regulatory
environment has to be supportive
5) Utilities need to consider competition to assess where they should
enter the market
6) There are practical issues that need to be addressed for network
design and deployment
7) Civil works is a key issue that needs to be considered at the outset.
Copyright: Intercai Mondiale Ltd. No reproduction without permission
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Intercai Mondiale Limited
Registered in England, No. 3271854
Registered office address: James House, Mere Park,
Dedmere Road, Marlow, Bucks SL7 1FJ
e-mail: admin@intercai.co.uk
web: http://www.intercai.co.uk
Copyright: Intercai Mondiale Ltd. No reproduction without permission
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