d1 1355 bernard lee
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FTTH in Asia Pacific:Leading the way…
Dr. Bernard LeeVP of APAC FTTH Council
Topics
1. Who is FTTH Council APAC?
2. Latest updates on FTTH in the region
3. Key considerations for network design
4. Key Challenges – across the region
5. Conclusions
Role of the FTTH Council Asia-PacificAbout Us:Non-Profit Organization formed in Singaporesince March 2005
Mission :To educate, promote and accelerate FTTHand the resulting quality-of-life andeconomic benefits.
Objectives :• Supply a consistent and accurate view of
FTTH• Promote FTTH market development• Be recognized by the industry as the
FTTH resource
(2006 ~ 2011) (2011 ~ present)
FTTH Council Global Alliance (FCGA)
70 Members
Source: APAC FTTH Council
APAC: At a glance…
Monique Morrow(President)
Currently has 60+ members
BoD & 6 working committees
Bernard Lee YoshihiroIshibashi
Anil Pande Changkun Yan KuldeepGoyal
Xingfu He
Technology &Architecture
Regulation &Policy
MarketDevelopm’t
Planning,Comms. &
Events
Education &Training
CloudComputing &
GigabitApplications
Latest market studies
Year-end 2011: >200 million wireline broadbandsubscribers in Asia-PacificFTTH/B represents over 27% of wireline broadband subscribers in Asia Pacific which isapproximately 58million subscribers.
9%
18%
8%65%
FTTHFTTBCable ModemDSL
Source: Ovum
0
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
FTTH in Asia Pacific – Overall Figures
Source: IDATE for FTTH Council APAC, Dec 2011
88
Rank Countries FTTH/B subsDec 2011
1 Japan 22,045,000
2 China 21,300,000
3 South Korea 10,373,975
4 Taiwan 2,398,000
5 Hong Kong 1,070,000
6 Malaysia 255,800
7 Vietnam 250,000
8 India 175,500
9 Singapore 98,500
10 Australia 37,000
11 Indonesia 11,000
12 New Zealand 7,500
13 Philippines 800
Australia is oneof the
Top 10
Australia is oneof the
Top 10
99%
FTTx is strong for the next 5 years• Worldwide, consumer FTTx subscribers accounted for 11% of wireline broadband
subscriptions in 2009, and will grow to 29% in 2016• In 2016, 50% of all wireline broadband subscribers in Asia-Pacific will be FTTx,
compared to 16% in Europe and 14% in North America
Source: Ovum
FTTH/B leads the growth in wireline broadband inAP and will reach 140 million subscribersFTTH/B leads with a 21% CAGR compared to -2% for DSL
Source: Ovum
DSL:-2% CAGR
FTTH/B:+21% CAGR
China will soon be the largest FTTH Market
• Asia-Pacific has always dominated consumption of worldwide OLT shipments• China’s share is increasing – almost 80% of worldwide ports shipped in 1Q11 were
destined for ChinaPON OLT port shipments
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11
PO
N O
LT
po
rt s
hip
me
nts
China OLT port shipmentsTotal Asia-Pacific OLT port shipmentsWorldwide port shipments
Source: Ovum
35% CAGR forChina’s OLTports.
Compared to24% CAGR forAP andworldwide.
FTTx market segmentation by country/region
China’s consumer FTTx subscriber base will grow to over 140 million in2016 from under 10 million in 2009
FTTx consumer subscribers by country or region
0
50,000
100,000
150,000
200,000
250,000
2009 2010 2011 2012 2013 2014 2015 2016
Year-end
FTTx
con
sum
er s
ubsc
riber
s (0
00)
China Japan & Korea Rest of AP Europe NA Rest of World
China represents 50%of worldwide FTTxsubscribers in 2016
Source: Ovum
Japan and Korea represent19% of worldwide FTTxsubscribers in 2016
Remainder represents31% of FTTx subscribersin 2016
Growing Market
Future Growth Area(e.g. India, LATAM, etc)
Summary Drivers for FTTH in APAC
Source: iDate & Ovum
• Demography: a huge market potential• India and China are the most populated countries in the world• MDUs are dominating in large cities especially in China• Asia Pacific’s FTTH/B subscriber base will grow to 140 million at year-end 2015.
• Low competition from other networks• As in Eastern Europe, the “quality gap” between copper and fibre networks is
important: end users will need fibre for higher bandwidth• Cablecos are less dominating the broadband market than in Europe or in the US…
but it could change (SARFT in China)
• A key driver for mass market migration in APAC: NBN programs
• Incumbents leading rollouts in APAC but also some free room for new entrants• Some incumbents are deeply involved in national FTTH/B deployments (Malaysia)• New entrants in large countries (India) or in challenging markets (Vietnam)
• APAC Mobile centric countries will need fibre also: LTE Backhaul
KeyConsiderations
Key Considerations for successful networkdesign…
• Is your network able to support theapplications that are to be delivered today and‘tomorrow’?
• Is your network able to support theapplications that are to be delivered today and‘tomorrow’?
TechnicalPerformance
• Is your network design common and ‘robust’enough that the same or similar design can beused throughout your network
• Is your network design common and ‘robust’enough that the same or similar design can beused throughout your network
Repeatability& Reliability
• Are there sufficient security measures in thenetwork but still accessible for maintenanceand testing
• Are there sufficient security measures in thenetwork but still accessible for maintenanceand testing
Accessibilityand Security
• How will your network grow?• How will your network grow?Scalability
16
Quality
Source: adapted from Telekom Malaysia
Key Challenges
Challenges FTTH Deployment & Adoption – 5Cs
Competency
Civil &Construction
Content
CustomerEquipment
CustomerAwareness
Mature
Exploratory
Challenge Impact
Manpower need to becompetent to deploy &maintain the network
Up to date digital homeequipment to fully enjoy
benefits of FTTH
New guideline and bestpractices are required to
deploy fiber up tothe customer premises
New content is needed tocapitalize the additional speed
offered - Increase ARPU
FTTH will struggle to evolvebeyond being a just another
commodity product
Customers will fail toexperience benefits of FTTH
over DSL
Deter new users fromsubscribing to the FTTH
services due to extensive civilwork required
Insufficient skilled/competentmanpower will delay deployment
thus increasing TCO
Customers are unknown of thenew capabilities and potential
of FTTH
Customers reluctant to adoptFTTH services
Asia Pacific
100Mbps
20
100
80
60
40
(US$)
2000 2001 2002
FTTH(for detached house )DSL
100Mbps500kbps 1.5M
12M 24M 40M8M
2003 2004
47M
2005
10Mbps
1GbpsFixe
d M
onth
ly C
harg
eFTTH price comparable to DSL but at much higherbandwidth
Source:
US$11/Mbps
US$0.5/Mbps
US$0.4/Mbps
US$0.04/Mbps
Value Innovation…
Efficient Life - Leading a lifewhere technology assist you toutilise your resources (may itbe time, finances, etc) moreefficiently and so that you
could start spending qualitytime with your love ones andnot taking up the time with
routine activities at home andat the work place.
Entertaining Life - Bringing thebest of high quality
entertainment to your finger tipsanywhere & any time throughany means possible may it be
ultra-highspeed fibre networksat home or even through ultra-
mobile wireless connectionswhen we are on the go.
Eco-friendly Life - Giving back tothe environment to ensure our
future and the future of our nextgeneration and their next
generation by exploring the useof alternative power sources andalso smarter and more efficientenergy utilisation both at home
& at work
22
How has broadband ‘value add’ our lives?
Matured InfancyDeveloping
Digital Home offering an efficient lifestyle from …
Verizon offers Energy Monitoring services for $9.99
25
SmallMediumEnterprises
Enterprises
Paving the way for New Business Opportunities
ServiceProviders
Fibre enhances customer experience
InteractiveButton
InteractiveButton
InteractiveButton
27
Finding out what isgoing on in your
community
Communicating withhealth care or
medical provider
Contributing toeconomic growth in
your community
Starting your viewswith others about
key issues
Communicating withgovernment officials
about issues% noted as important activity 68% 65% 62% 58% 57%
50%
52%
54%
56%
58%
60%
62%
64%
66%
68%
70%
Broadband activities cited as important byusers in terms of percentage (%)
Incr
easi
ng in
fluen
ce o
f bro
adba
ndon
dai
ly li
fest
yle
Conclusion:
Fibre is not ananswer to our needs,but instead it is theENABLER of a futurefilled with infinitepossibilities…..