FTTx Access in North America, Europe, and Other Regions – Status and Perspectives

1. Joint ITU/IEEE Workshop on Ethernet - Emerging Applications and Technologies FTTx Access in North America,Europe, and Other Regions – Status and Perspectives Martin Carroll, DMTS - Verizon martin.carroll@verizon.com

2. Outline • FTTx in North America • Verizon • Other deployments • FTTx in Europe • FT • Vodafone • FTTx in Middle East, other regions • Etisalat

3. FTTx in North America

4. FTTH Accelerating in North America

5. Percent FTTHConnections by Country 930 North American, 880 U.S. providers 97% U.S. providers have < 10K FTTH connections

6. Verizon: Global Leader Advanced foundational platforms Headquartered in NYC Largest U.S. wireless company, with 107.8M total connections Largest 3G & 4G LTE networks in the U.S. Global IP network reaches customers in > 150 countries Over 485,000 route miles First to deploy commercial 100Gb/s ultra-long-haul optical system Average 1 billion calls daily Leading FTTP deployment in North America

7. FiOS Deployment FiOS Growth 2004 2012 • FiOS Service is available in 12 States & Washington, DC • FiOS Internet • Launched 2004 • Up to 300Mb/s down & 65Mbps up • 1Gb/s trials successful • FiOS Video/TV • Launched 2005 • 130 HD & 530 SD channels • Initial deployment BPON • GPON introduced 2007 • XG-PON trials successful • Over 17M premises passed

8. FiOS Architecture Data path used for VoD and IPTV Up to 1x32 splitter WDM replaced with 2x2 splitter for 1:64 split MoCA for in-home distribution Video overlay

9. SuccessfulXG-PON1 Trials Broad-cast Video Home Network Central Office Router EDFA STB Class 5 Switch GPON ONT Cat 5 PSTN GPON OLT Coax 1x2 Splitter Test Cart Gateway Router XG-PON1 ONT STB Converter Internet / VOD XGPON1 OLT STB Router WDM1r IP Test Set Splitter Test PC Test PC FDF FDH IP Test Set • Huawei XG-PON1 overlaid on Motorola GPON • WDM1r integrates GPON & XG-PON wavelengths • Successfully demonstrated: • 10G down x 2.5G up capable; 1 Gig home network • Coexistence of XG-PON & GPON

10. XG-PON2 Proven • XG-PON2 Symmetric 10Gb/s Downstream and Upstream • Used existing ODN in Taunton, Massachusetts • Alcatel-Lucent equipment • Viability demonstrated • 10Gb/s upstream channel viable, could be basis for NG-PON2 • Support greater upstream bandwidth for adoption on a mass scale of new and emerging business and residential applications

11. Residential Drivers Bandwidth Growth • Need for SPEED • Consumer speeds increasing at 6-10x every 6 years • Throughputs in excess of 1Gbps are expected by 2015 • Competitive advantage • New services/technologies • Gain operational savings via copper replacement • Central office consolidation Source: Cisco Larger screens require higher resolution Downloading HD & 3D video content UGC Sharing Multi-location 3D HD video conferencing

12. Central Office Consolidation Opportunity PON Reach at 20km allows Number of COs to reduce to 58 273 COs 30-40km PON distance appears ideal balance between cost and technology PON Reach is 30km allows Number of COs to reduce to 29

13. Business Drivers • Ethernet Services • SES (Switched Ethernet Service) • Point to Point or Multipoint Ethernet service • 10M, 100M, and GigE UNI options • EPL (Ethernet Private Line) • Wireless Backhaul • Microcell site support • Distributed eNodeB • CPRI backhaul • Macrocell • Ethernet backhaul • Optical Services • OWS (Optical Wavelength Services) • Dedicated wavelength – 10G or 40G • Point to point service • Various client side handoffs, e.g., Ethernet, SONET, FC etc. • OTN (OTU1 – OTU3) • SONET (OC3-OC192) • EDSR (Enhanced Dedicated SONET Ring) • Dedicated fiber in the access loop • Services currently supported over GPON will be expanded and enhanced with Verizon’s 3rd Generation PON driving economies of scale

14. Access PON Evolution B-PON Vz’s 3rd Generation PON • Common platform to support residential and business services • Deployable within existing infrastructure • Splitter based FTTP architecture • Connectorized system • RF overlay • Coexist with GPON • Protection and resiliency options • Demonstrated multi-vendor plug-an-play interoperability between OLT and ONU’s • Fully deployable by 2015 GPON G-PON G-PON Current Deployment Rates up to 400 Mbps Limited Business Circuits OTT Video Improved Economies of Scale: 1:64 Splits B-PON Initial Deployment Rates to 30 Mpbs Consumer/Small Business Market 1:32 Splits

15. 3rd Gen Candidates ONTs Being Deployed NG-PON2 XG-PON1 G-PON B-PON 2020 2004 2015 2007 2011 NG-PON2 is “best-fit” for Verizon Focus Standards and Interoperability development to meet the timeline

16. Other FTTxDeployments Google “Fiberhood” AT&T, CenturyLink have significant FTTC/FTTP deployments Chattanooga public utility (EPB) offered gigabit FTTH for 3 years Google Fiber to launch 1Gb/s in Kansas City “fiberhoods” in October GigU to deliver 1Gb/s drops in areas around universities

17. FTTx in Europe

18. FTTx in 2012 for France

19. Conquest 2015

21. Portugal • As of September 2012, Vodafone has over 35,000 customers on FTTH access. • Alface project has been running commercially since September 2010, Libra project has been running commercially since March 2011 • Since September 2012, we have 476,000 homes passed. • FTTH GPON is the technology used, with analogue/digital video overlay.

22. Capacity • FTTH deployments offer much higher bit rates to customer. Vodafone Portugal base offer is 50/5 Mb/s, with Internet Profiles up to 400/40 Mb/s to Residential subscribers. • About 80% of our installed base subscribe to IPTV services. On-demand TV service (RestartTV) has increased the overall backhaul traffic and traffic per user. • Some copper deployment is not suitable to deploy these bit-rate demanding services as VDSL2 is not viable

23. Interoperability • OLT vendors already offer integrated gateways, but with few functionalities - today these gateways can’t replace the already deployed CPE + L2 ONT, they are expensive and they can’t work in a multi-vendor environment. • Vodafone’s goal is to have an integrated Home Gateway (similar to DSL) that can interoperate in a multi-vendor environment. This will reduce acquisition and retention costs, the amount of equipment installed in customer premises and simplify logistics.

24. Other EuropeanProjects • Vodafone Germany has two FTTC trials under way in the cities of Wuerzburg and Heilbronn. • Vodafone Italy is starting a project to deliver FTTH services with GPON technologies in Milan by using the Metroweb fiber network

25. FTTx in the Middle East, Other Regions

35. African Projects • Vodafone Ghana is deploying FTTC for increasing data rate to customers by using GPON as technology for backhauling street cabinet DSLAMs • Vodacom South Africa is staring a project for delivering FTTH services to business and high spending residential customers using GPON technology

36. Australia andNew Zealand • In Australia, NBN Co will deploy 181,000 km of GPON network, and 57,000 km of transit backhaul. Aerial drop fibre to be used for 25% of households • Provides a bitstream service with equal service terms to all ISPs, including Telstra, which will lose control of the copper. High interest in an open PON solution to overlap to their initial GPON in order to give ISP freedom to install their own OLT at the Central Office • In New Zealand, the government is deploying a NZ$1.5 billion UFB (Ultra Fast Broadband Initiative) access fibre network through Crown Fibre Holdings (CFH). FTTH to be available to 75% (800,000 homes and businesses ) of the New Zealand market by 2019 • Vodafone New Zealand will buy Layer 2 products from the LFCs to deliver FTTH in the retail market. GPON for residential and point to point for large businesses. 100Mbps down and 50Mbps up.

37. THANKS!