Obstacles & Solutions to efficiently provide BB services over copper pairs

1. Obstacles & Solutionsto efficiently provideBBservices over copper pairs Peter BOLLDetecon International GmbHHead of GroupFixed Access & Transport(Tunis – 29 June 2005) Designing Future Business Think forward

2. Contents Think forward

3. [Fixed] 2004 [Mobile] 2005 2006 2008 2009 1. Storyline1.1 Current situation of fixed network operators With over 750 million phone lines worldwide, copper is a valuable asset. Operators are consistently searching for ways and means to efficiently revitalize the copper loop, forced by • Increased competition through new market entrants • Fixed and mobile operators • Internet service providers • Decreasing revenues for traditional telecom services • Strong demand for high speed data services (broadband services) As the first mile (OSP) represents the highest investment portion, the selective deploymentof DSL systems for provision of broadband services is worthwhile to be considered. Development of Fixed Retail Revenues 0 50 100 150 bn € Source: Analysys Research 2004 (Europe) CAPEX Distribution 12% Land & Building 18% Transmission 22% Switching 48% OSP Source: Detecon 2004

4. 2005 2004 2006 2003 Development of Broadband Revenues 2007 China 0 5 10 15 20 bn € Source: Yankee Group 2003/4 (EMEA BroadbandRevenues) USA xDSL Customers – the Big Five in 2004 Japan South Korea Germany highest penetration 0 5 10 15 20 mill. Source: Telecoms Strategies & Trends (Issue 04/20 – 15 Jan 2005) 1. Storyline1.2 Market trends With 94million DSL customers worldwide in 2004 andover400million customers forecastedfor 2010 • Broadband revenues will become a new cash cow for fixed line carriers Bundling the basic DSL-broadband connection with content is recommendable, ensuring two additional sources of revenues for fixed line carriers.

5. 1. Storyline1.3Challenges, obstacles and solutions Challenges Solutions Meet demand through provision of BB services by means of various technologies • WIMAX • WLAN spots • Cable TV networks • Additional cable network rollout and • Facilitation of existing copper network (first mile) by deployment of DSL systems including • Pre-qualification of lines (4-6% of total lines) • Network optimization/ rehabilitation • Increasing competition by new market entrants, especially mobile operators and ISPs • Decreasing revenues for traditional services • Strong demand on broadband services Obstacles • Capacity, quality and utilization of existing access network (first mile) • Network documentation • Technical standards • Technical know how

6. 2. DSL Systems2.1 Actual and future DSL systems Available Systems Future Systems

7. 2. DSL Systems2.2 Brief comparison of actual DSL systems ADSL2 ADSL2+ VDSL1 • 12 Mbps • 27 Mbps <600 m • 20 Mbps at 1.5 km • 50 Mbps <300 m • 25 Mbps at 1.5 km Maximum datadownstream rate • 1 Mbps • 1 Mbps • 6.4 Mbps < 300 m • 3.2 Mbps at 1.0 km Maximum dataupstream rate • 5.6 km • 5.6 km • 1.5 km • Higher bandwidths require copper loops <=1.0 km • Typically uses FTTC Maximum copperloop length • Fixes some ADSL deployment problems • Best value per bit for short reaches • Provides highest speeds over copper loop Strength • Cannot scale easily to meet higher bandwidth needs • No speed advantage for loops >2.1 km • Cannot scale easily to meet higher bandwidth needs • Costly to operate and maintain Weakness

8. Obstacles & Solutions to efficiently provide BB services over copper pairs Internal procedures& processes Networkinstallation quality Know how and skillsof planning staff Quality of installedcables, cabinets, etc. Possibleobstacles Know how and skillsof O&M staff Utilization of installed cables Network topology Existing pair gainsystems Existing networkdocumentation Loading ofcables 3. Obstacles for the introduction of BB services3.1 Summary of possible obstacles

9. Excessive loop length 3. Obstacles for the introduction of BB services3.2 Possible disturbers in the copper loop Subs. Coils Moisture Bridged taps Central Office Subs. Shortcircuit Short circuit Subs. Bad splice Change of conductordiameter (reflection) DistributionPoint Subs. Isolation damage Bad / non standardin-house installation

10. Analyse Plan Build Run • Know-how & skills • O&M / planning staff • Organization • Procedures and processes • Know-how development plan • Optimization of Organization • Operational concept • Training of O&M and planning staff • Implementation of organizational changes • Preparation of local exchange with selected DSL equipment • Execution of works • QUICK WINS -key customers to be instantly installed • Network optimization (partially) • Network rehabilitation • As build network documentation • Management and administration • Operation and maintenance • Marketing • Customer relation management • Connect fully- automatic „Mass DSL deployment“ • Test local loop / pre-qualification • Work-flow provisioning process • CPE auto configuration • Demand forecast • Actual waiting list • BB Services • Data base for network documentation • Deployment concept and detailed planning based on demand forecast for • Qualified lines (QUICK WINS / 4-6% of total lines) • Network optimization (partially) • Network rehabilitation • Procurement • Selection of (pilot) area(s) • Review of existing documentation • Computer aided measuring / testing • Metallic testing • BB pre-qualification 4. Solutions for the introduction of BB services4.1 Methodology - analyse, plan, build and run Obstacles &Solutionsto efficiently provide BB services over copper pairs

11. QUICK WINS Planning & executionof network optimization Phase 1 Phase 2 Phase 3 4. Solutions for the introduction of BB services4.2 Detailed analysis - the key to success Detailed analysis (computer aided measuring / testing) Network documentation for selected / pilot area(s) • Utilized capacity • Idle/spare capacity • Faulty capacity • BB pre-qualification Potential lines for Broadband Services(Lines to be further investigated + lines not qualified) Planning & executionof network rehabilitation Instant provision ofBB services to key customers Provision of BB services to remaining key customers Provision of BB services to remaining customers

12. 4. Solutions for the introduction of BB services4.2 Detailed analysis - computer aided measuring / testing Test connection(pair no. n) Measurements / Tests • VAC, VDC, • Capacitance, • Leakage (spares only) • Longitudinal balance • Load coil detection • Bridged tap detection • Wide band noise (WBN) • Automatic number identification (ANI) unclear Today’s test equipment for DSL systems examines the line up to 1.2 MHz. Tomorrows test equipment for ADSL2+ / VDSL systems will examine the line up to 2.2 MHz /12 MHz. Check of loop length ok Calculation of line transfer function not ok Calculation ofpossible bit rate Addition of future disturbers impact Passed broadband provisioning criteria not ok unclear ok Lines not qualified Qualified and estimated bit rate Lines to be furtherinvestigated Documentationdata base

13. Documentation of pair occupation A cable pair based data base must be maintained for • Primary cables • Secondary cables including information on • Spare, idle & faulty pairs • Bridge-tap & load-coil details • Phone number POTS/ ISDN/transmission systems • Routing details • Broadband pre-qualificationresults (possible bit rate) • DSL systems to be installed 4. Solutions for the introduction of BB services4.3 Network documentation Documentation data base(A complete, accurate and updated electronic data base is a must) Documentation of cable network • Plant location maps including location of cabinets • MDF diagrams • Primary cable diagrams • Cabinet diagrams • Secondary cable diagrams • Deployment concept and detailed planning for • Qualified lines (QUICK WINS /4-6% of total lines) • Network optimization (partially) • Network rehabilitation

14. Centraloffice Cabinet DP (ADSL,ADSL2 / 2+) Cabinet Opticalnetwork unit Centraloffice Cabinet DP Rehabilitation ofindoor / outdoorwiring Rehabilitation ofprimary cable Rehabilitation ofsecondary cable 4. Solutions for the introduction of BB services4.4 Quick Wins, network optimization and rehabilitation MDF - vertical side Primary cablesection Secondary cablesection Indoor / outdoorwiring Section Quick Wins the lowest cost option: • Retain the complete local copper loop • Deploy a version of xDSL Network optimization the more expensive option: • Replace part of the loop with fiber in a FTTC configuration • Increased operational range and data transmission rate Centraloffice DP Opticalfiber FTTC used with ADSLx or VDSL) Network rehabilitation depending on deployment concept: • Cable fault clearance • Re-jumpering at MDF / cabinets • Replace part of the existing copper cable network

15. 5. Benefits for fixed network carriers • Immediate additional revenues through QUICK WINS(4-6% of total lines) • QUICK WINS can support the financing for the development of further areas with high demand on broadband services • Minimized investment risk through 3 phase approach (quick wins, network optimization, network rehabilitation) • Target oriented and scalable investment for network optimization and rehabilitation • Increased revenues • Strengthening of customers’ loyalty • Strengthening of market position • Increased competitiveness • Improved image

16. Mr. Peter BOLLHead of Group Fixed Access & TransportDetecon International GmbHOberkasseler Str. 253227 Bonn (Germany)Phone +49 228 700 2920Fax +49 228 700 2107Mobile +49 170 780 9092 Peter.Boll@detecon.com 6. Contacts For additionalinformationplease contact Mr. GerardoBEHNE Telco Providers Middle EastDetecon International GmbHOberkasseler Str. 253227 Bonn (Germany)Phone +49 228 700 2221 Fax +49 228 700 1607Mobile +49 171 760 4051 Gerardo.Behne@detecon.com