Ftth

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FTTH in France
Julien Vincent head of very high broadband access marketing NExT

March 6th, 2008

agenda

1 2

what we have learned from our customer pilot

orientations for 2007-2008

2

agenda

1 2

what we have learned from our customer pilot

orientations for 2007-2008

3

more bandwidth for more services
HDTV with interactive programs, on multiple TV sets or PCsVOD movies and programs streaming or download video games on-line or download video blogs / online photos for digital cameras and camcorders online storage and back-up data security for consumers and SoHo's simultaneous and symmetrical usage powered by the livebox

4

Orange role is to meet customer demand beyond what ADSL-type solutions can provide, for mass market take-off in 2009

FTTHis enabling new usage patterns right now
fiber access ADSL access download at 8mbps upload at 1mbps

download and upload at 100mbps

copper lines eligibility : 8mbps / 1mbps around 65% around 25% 15mbps / 1mbps

full HD quality movie

30 Gb

40min

>8h

>66h

DVD quality movie

4.8 Gb

6min 30s

1h 20min

>10h

amateur quality video

800 Mb

1min

13 min

1h 40min20 photos with uncompressed 8M pixels

480 Mb

40s

8 min

> 1h

10 MP3 music tracks
5

40Mb

3s

40 sec

5 min

FTTH vs. FTTC (and FTTB)
Coverage

DSL
ADSL / ADSL2+
< 20 Mbps

window of opportunit y

VDSL2
< 100 Mbps

FTTH
100+ Mbps

FTTH is the most future proof solution

2005

2009

2015

FTTC
bandwidth / reachabilit y VDSL speed is 25 to 30Mbps for a 700 m distance to the street cabinet (average in France)

FTTB
VDSL speed is 50 to 100 Mbps when fiber terminates at the building

FTTH
100+ Mbps With FTTH, reachability is no longer an issue

cost

FTTC is less CAPEX intensive than FTTH, with ~35% less CAPEX in urban areas

FTTB saves on indoor wiring but requires active equipment installation in the building (with syndics’agreement)

FTTH is less OPEX intensive than FTTC since most FTTH active equipment is managed at MDF and a fiber in the sub-loops costs less to maintain than copper

FTTC CAPEX consists mainly of street cabinets, power supply and network equipment, which are not re-usable as part of a FTTH deployment

FTTC is less CAPEX intensive than FTTH, but reachability is not sufficient. As very few ofFTTC CAPEX can be re-used for FTTH, FTTC is not a ‘first 6 step’ to FTTH

which architecture should we use ?
1st customer

point to multipoint

1 fiber for 64 customers

64th customer

1 fiber for 1 customer

point to point

point to multipoint (on GPON) is the most CAPEX efficient (lower duct occupancy with less fiber) and saves OPEX at the central office, 7 with no foreseeablelimit in available bandwidth

customer pilot (june 2006 – february 2007)

5 cities in the Hauts-de-Seine Asnières-sur-Seine Boulogne-Billancourt Issy-les-Moulineaux Rueil-Malmaison Villeneuve-La-Garenne

all-included offer
100mbps symmetrical Internet access simultaneously 2 HDTV streams on TV and 1 stream on PC unlimited VoIP dedicated Web 2.0 portal on-site home installation and servicesactivation dedicated hotline

6 districts in Paris 3rd, 4th, 6th, 7th, 13th, 16th

€70 / month 14 000 homes passed 900 agreements with managing agents for collective buildings (“syndics”) 1 000 customers (7% penetration) less than € 5 m CAPEX

8

lessons learned from our customer pilot
customers
high level of interest for FTTH symmetrical bandwidth and reliability, with technical supportrequired for mass market adoption main applications are : HDTV, multi-access, photos, video, home working, sharing of user generated content key parameters are : lead time to get agreements from “syndics” lead time to connect and install customers on-site pilot helped define end-to-end roll-out processes in various habitations (old or recent apartment buildings, detached houses) 70% of customers...
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