Ultra-Broadband Forum 2015 8-9 September 2015 | Madrid, Spain

OTE NGA Network Development

A Correct Strategy Pays Back even in Times of Crisis.

Dr. Christos Vasilopoulos

OTE Fixed Access and Cabling Network Infrastructure Division

September 2015

Telecommunications in Greece – Telecom Operators:

• ON

• Vivodi

• LANNET

• Algonet

• NetOne

† 2012

† 2015

† 2008

† 2012

† 2011

Alternative Carriers:

• Hellas on Line

• Tellas - Wind

• CYTA

• Forthnet

Fixed Operators:

OTE: Public Monopoly 1949 – 1994

Incumbent Operator 1994 – today Part of DT Group 2009 1994 End of Public Monopoly 2006 Introduction of LLU

Mobile Operators:

COSMOTE 1998

VODAFONE 1992

Telestet (1992) – Wind Hellas 2007

OTE Telecom Market in Figures:

OTE Lines (PSTN+ISDN): 2.687.000 OTE Broadband: 1.456.000 OTE VDSL: 120.000 (5.100 wholesale) OTE TV: 390.000 LLU Lines: 2.040.000

Distribution of LLU Lines among Alternative Operators (end of 2014 – Source Infocom)

FTTH Greek Government Initiative:

During 2009 the Greek Government announced plans to promote the Development of an Open-Access Passive Network with Point to Point Architecture that would offer optical fiber to 2.000.000 buildings (houses & enterprises) in Athens, Salonica and 54 main regional cities.

The project would set an Infrastructure Provider Model for the manufacturing-maintenance-provision of passive infrastructure (dark fiber) to the telecommunications services providers. The Infrastructure Provider would not be able to provide neither telecommunications nor ISP services.

Rollout Duration: 7 years (begin 2010) Estimated CAPEX: 2,1 Billion € Financing: Government Financing + Private investments

Estimated Break Even in 14 years (provided there is no NGA competition)

The plans were never materialized beyond the initial stage (two feasibility studies from different consultants awarded by two successive governments) and was officially abandoned in 2012.

Both political and regulator pressure was applied to OTE Management to abandon its plans and participate to the FTTH project.

Overall the Greek Government FTTH initiative had an adverse effect on OTE plans for independent FTTC+VDSL2 NGA development , resulting in a 2 year delay in the offering of VDSL services (2/12/2012).

OTE Copper Access Network

OTE Access Network: ~ 38.000 Cross Connection Cabinets (KV) Dense Urban/Urban Areas: 65% of all KVs KVs with >150 active lines: 61% KVs with >200 active lines: 18% 30% Main Network < 800 m 20% Main Network < 500 m 95% Secondary Network < 500 m

Primary Network

Secondary Network

OTE KV outdoor Distribution Frames (180 active lines /KV)

Old-KV: Screw-type Termination Box

Termination Capacity: 750 pair

New-KV: IDC Termination Elements

Termination Capacity: 1.200 pairs

Factors that Influence OTE NGA Network Strategy:

- There is no Competition from Cable Operators

- OTE has Complete Control on Existing Copper Access Network

- Fixed Competition only from LLU Services (Fragmented Market)

- OTE Copper Access Network Best Suited for FTTC+VDSL2 Implementations

- Existence of available Ducts in 50-60% of the Primary Network

- Lower FTTC+VDSL2 Deployment Cost ≈ 75€/active line

OTE NGA Network Strategy:

Provide VDSL services from Local Exchanges to Customers with

Cabling Length < 800 m

Advantages:

- Faster Service Deployment

- Lower Deployment Cost

Disadvantages:

- Competition from LLU

- Lower Service Quality due to Interference

- Vectoring NOT Possible

Provide VDSL services from Cabinets to Customers of Selected Local Exchanges (prioritization via commercial criteria) with Cabling Length > 500 m

Advantages:

- Superior Service Quality

- No Infrastructure Competition from Alternative Operators (extensive SLLU not viable)

- Future Upgrade via Vectoring

Disadvantages:

- Higher Cost

- Slower Deployment

Eventual Transfer of all xDSL and VoBB/POTS Services to the Cabinets

Advantages:

- Superior Service Quality

- No Infrastructure Competition from Alternative Operators

- Network Simplification

- Simpler Provisioning

- Local Exchange Consolidation

Disadvantages:

- Higher OPEX (?)

Factors that Reduce FTTC+VDSL2 Deployment Cost:

- Use Mini-Trenching with Multi-Duct Assemblies (7x10/14mm) and Mini-Cables to Reduce Construction Cost (< 10 €/m)

- Maximize the Use of Available Duct Infrastructure by Sub-Dividing it with Multi-Duct Assemblies (7x10/12 or 4x10/12) and Mini-Cables.

- Unify Planning for NGA and 4G Base Station Deployment in the Same Areas

- Design Cabinets with Minimum Free Space Availability (i.e. Midi-DSLAM only) to Ensure Placement on Existing KV Locations on Pavements.

- Use Sufficient Fiber Capacity in the Primary Network to be Ready for FTTB/H Transition.

OTE NGA Technology: FTTC+VDSL2 → GPON-FTTH Ready Evolution Plan

Manhole

Main FO Network

96OF

FO Cabinet Cable

12 OF

Outdoor Cabinet Type C2

FO

Closure

Outdoor Cabinet Type C3 Gradual Network Evolution:

FTTC/Β → FTTB → FTTH using GPON

1:4

splitte

r

- 4 OF for VDSL (2 spair) - 8 OF with splitter 1:4 – 32 FTTB

12 OF per outdoor cabinet/KV

ONT

1:8 splitter

– with splitter 1:8 – 256 FTTH

Μικροκαλώδιο 96 ινώνΜικροκαλώδιο 96 ινώνMini-FOC 12

Typical NGA Network Design Blue Print:

OTE NGA Network Rollout Coverage

in Areas of Attica & Salonica:

STATUS Cabs until 31/08/2015 in Attica Region STATUS Cabs until 31/08/2015 in Salonica

VDSL Active Ports on 3/7/2015: Retail 30 = 97.717, Retail 50 = 24.043, Wholesale 30 = 2, Wholesale 50 = 4.892

4.300 NGA Cabinets (42,5% Connections): • 61,2% VDSL_30 • 38,8 % VDSL_50

10.176 VDSL_LE_KVs (from 436 LE – 57,5% Connections): • 90,1% VDSL_30 • 9,9 % VDSL_50

OTE NGA Cabinet Types:

KV C3 Cabinet Type C2 Cabinet Type

Front View

Side View

C3 Cabinet Type C2 Cabinet Type

Retain KV DF (IDC type)

MA5603T

3M MDF Splitter Box

MA5603T Replace KV DF Primary Net: 5x64 3M MDF Box Secondary Net: 4x160 3M HD Blocks DSLAM Ports: 1x160 3M HD Blocks

OTE Next Steps Forward:

- Further FTTC+VDSL2 Deployment in All Urban and Semi-Urban Areas

- Reduce Implementation Cost in Semi-Urban Deployments (lower customer concentration) by using Sealed DSLAM and aerial fiber optic cables

- Service Speed Upgrade to 100 Mbps by introducing available VDSL Technology Improvements (Vectoring, Bonding, V.Fast etc.)

- Maximize Fixed & Mobile Collaboration (OTE+COSMOTE) by introducing Hybrid technologies.

- Plan for Local Exchange Consolidation

- FTTH deployment only in Greenfield Areas

Ultra-Broadband Forum 2015

Thank you