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NICC PLC Update Paul Momtahan , Head Of Marketing

NICC PLC Update Paul Momtahan , Head Of Marketing. SSE Telecom Overview A Scottish & Southern Energy Company. Telecom Business of Scottish and Southern Energy PLC Telecom activities developed in Scottish Hydro-Electric and Southern Electric prior to their merger from internal requirements

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NICC PLC Update Paul Momtahan , Head Of Marketing

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  1. NICC PLC UpdatePaul Momtahan, Head Of Marketing

  2. SSE Telecom OverviewA Scottish & Southern Energy Company Telecom Business of Scottish and Southern Energy PLC • Telecom activities developed in Scottish Hydro-Electric and Southern Electric prior to their merger from internal requirements • Scottish Hydro-Electric gained a PTO licence in 1993 and embarked on development of customer projects and sales. • 2,300km fibre network that was laid alongside the Scottish & Southern Energy’s electricity distribution networks in the South of England and North of Scotland, • Scottish & Southern Energy’s portfolio of over sites pylons for mobile operators Acquired Neos In April 2003 • Founded in 1997 • National UK Network With 120 POPs • UK’s First Ethernet Service Provider (Launched Ethernet Service in 10/2001) • Other products: SDH Leased Lines, IP Transit, Dark Fibre, Integration Business

  3. SSE Telecom OverviewScottish & Southern Energy PLC Company Background • Formed in December 1998 from the merger of Scottish Hydro-Electric and Southern Electric • Electricity Supply to 5 Million Customers • Electricity Distribution to 3.3 Million Customers • Top 5 UK Generator of Electricity • 9,474 Employees Unrivalled Financial Strength • FSTE 100 Company • 2003 Revenues: £4,113.6M • 2003 Operating Profit: £685.3M • Market Capitalisation: £5B~£6B • “AA-” Standard & Poor Credit Rating (Best in Telecom!)

  4. Power Line CommunicationsArchitecture Internet & PSTN point to multi-point CPE* Phone(s) point to point PC Low Voltage (“Last mile”) In-Premise (“Last Inch”) High Voltage Medium Voltage Grid (FibreNetwork) * CPE - Customer Premise Equipment PSTN - Public Service Telephone Network

  5. Power Line CommunicationsSpeed & Reach Symmetrical bandwidth with future growth potential (Up to 100Mbps in vendor labs)

  6. Power Line Communications First Mile Transformer Sub-station Home HV Network Controller Modem Meter/ Distrib. To Backbone Network Outdoor Segment Indoor Segment

  7. Power Line Communications First Mile with Repeaters Transformer Sub-station Home • Repeater • Low Voltage Pillar • Street Furniture • Customer Meter Box HV Network Controller Modem Meter/ Distrib. To Backbone Network Outdoor Segment Indoor Segment

  8. Power Line Communications First Mile + In-Premises for MTU MTU Transformer Sub-station HV Network Modem Controller Modem Meter/ Distrib. Adapter To Backbone Network ETH. Outdoor Segment Indoor Segment

  9. Power Line Communications Potential PLC Coverage Area= 3.3M Customers

  10. SSE PLC TrialsCampbletown Re-cap • one of Scotland's most remote mainland towns being the furthest from any other town on the British mainland • until recently, main contact with the rest of Scotland was by sea • Ireland is just 20 km away

  11. SSE PLC TrialsCampbletown Re-cap Schematic Network

  12. SSE PLC TrialsIncreasing Scale of Activities

  13. SSE PLC TrialsWinchester Marketing Trial

  14. SSE PLC TrialsStonehaven Marketing Trial

  15. PLC EconomicsSatellite Backhaul • Lower capital cost but higher running costs • Scale Requirements: 30~50 customers • Within reach of one substation (400 m radius) • Within reach of multiple substations • SDSL links on same exchange • Medium Voltage PLC links • Broadband wireless links • Income/customer = ~£30/month • Public sector requirements can reduce this

  16. PLC EconomicsFibre or Microwave Backhaul • Lower running costs • Scale Requirements: 100~200 customers • Within reach of one substation (400 m radius) • Within reach of multiple substations • SDSL links on same exchange • Medium Voltage PLC links • Broadband wireless links • Income/customer = ~£30/month • Public sector requirements can reduce this • Public sector backhaul can reduce this further

  17. PLC Regulation • PLC has the potential to interfere (Like any radio source) • Probability of interference is very low (based on real life experience) • Equipment can shift/block selected frequencies to avoid problems • Need to show protection of “small users” • Impossible to legislate for complete radio protection and free spectrum use

  18. PLC Regulation • No regulatory problems (worldwide still no significant complaints arising from PLC despite 100’s of thousands of passed properties) • 80% of the measured values are below 55dBµV/m (for both indoor and outdoor measurement points) • 94% of the measured outdoor values are below the JWG CENELEC/ETSI currently proposed limit (55 dBµV/m) • 60% of the outdoor measurements are lower than the surrounding noise floor

  19. Summary • Broadband by PLC works • Technically • Profitable commercial models exist • The real test is whether utilities can market broadband services to their customers • On their own • In partnership with others • In direct competition with cable & DSL

  20. NICC PLC UpdatePaul Momtahan, Head Of Marketing

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