Techno-Economic Comparison of GPONs and Long-reach PONs Farsheed Farjady Dr Marco Ruffini, Professor David Payne, Professor Nick Doran

Overview 1.0 Intro to LR-PON and GPON 2.0 Advantages of LR-PON 3.0 Results 4.0 Summary

GPON Architecture with 21CN backhaul 32-64 Customers 2.5 Gbit/s downstream (1495 nm) Local Exchange ONU Backhaul to metro nodes GPON OLT ONU 1.25 Gbit/s upstream (1310 nm) ONU 20 km max

LONG-REACH PONs (LR-PONs) 10.0 Gbit/s downstream 512 to1024 total split 10.0 Gbit/s upstream Flat Core Network Metro Node LOCAL EXCHANGE (by passed) 100 km OPTICAL AMPLIFIERS 4

Advantages of LR-PON Large split 512 to 1024 instead of 32 to 64 Greater statistical multiplexing advantage. Reduction in Electronic nodes and sub-systems Lower cost, lower power consumption - greener network Optical networks more reliable than copper. Lower operating costs 10Gb/s peak rate to customers (~10,000 times DSL rates). 10 to 20 Mb/s sustained bandwidth (~200 times DSL rates). Future bandwidth can be ~ 100 times greater via WDM 5600 Local Exchanges in UK can be reduced to ~100!

Techno-Economic Software Model Fibre cost data to create cash flows curves from Analysys Mason for BSG, 2008: “The costs of deploying fibre-based next-generation broadband Infrastructure”.

Techno-Economic Software Model

Cost breakdown

Exchange Population

LR-PON Cost Savings

Reducing Take-up rate to 40%

LR-PON Cost Saving

Max bandwidth 1 Mb/s

LR-PON Cost saving

Max bandwidth 100 Mb/s

LR-PON Cost Saving

Effect of Take-up rate

Effect of variable take-up rate population sizes

100 Mb/s maximum bandwidth Effect of variable take-up rate and

Cash Flow Curves

Time to Positive Cash flow vs. Take-up rate

Effect of Initial revenue

High and Low Exchange Population e.g. Swansea Main, Wales Exchange Population= 5164 e.g. Glantawe, Wales

Comparison of Total Costs vs. Exchange Population

LR-PON Cost Advantage

Comparison of Total cost vs. Take-up Rate

LR-PON Cost Advantage

Summary I The model is a flexible analysis tool for comparing alternative architectures Current version includes: LR-PON plus flat optical core Standard GPON with 21cn type backhaul The model predicts lower cost for LRPON as well as faster time to positive cash flow. These advantages will be greater when power consumption models are added later in the project.

Summary II Cash flow analysis Component and sub-system costs. The model can produce: Cash flow analysis Component and sub-system costs. Inventory analysis Cost by region/geography, geotype or exchange area etc. It is developed as a strategic analysis tool but could be developed for business case support in the future, if required.

Acknowledgment We wish to thank Welsh Assembly Government for funding this project.

Thank you