1. UCLL Sub Loop Co-Location Economic Life of a Cabinet

2. 2 Overview Physical life of FTTN cabinets is 20 years. Economic life depends on: When FTTN is over taken Whether cabinets are made redundant at that point. Our best estimate of economic life is 10 years

3. 3 When will FTTN be overtaken? Technology is rapidly evolving. 10 years ago: Telecom was installing dialup internet capability An initial ADSL trial was being run, and the first ADSL commercial deployment design was just beginning. ADSL services were commercially available beginning in 1999. Today We are in our 4 th generation of ADSL technology Installing cabinets to improve customer line rates VDSL2 is beginning to be deployed Mobile technology is delivering Broadband, ever increasing Govt policy is to deliver FTTH to 75% of NZ in the next 5 years Mobile Technology delivers Broadband, 3G will make this faster

4. 4 The next technologies are already here. 1 Gig/s 3.00 Km * P2P Ethernet Fibre to the Business FTTB 100 Mb/s3.00 Km * GPON Fibre to the Home FTTH 60 Mb/s 0.30 Km VDSL2Fibre to the Curb FTTC 20 Mb/s0.80 Km VDSL2 15 Mb/s0.80 Km ADSL2+ FTTN / Exchange SLU 5 Mb/s3.00 Km ADSL2+Before FTTN UCLL End user Speed Average Copper Distance TechnologyDescription Product Govt policy Installing in Greenfields now Vendors demonstrating now now legacy What’s happening? Fibre Distance * Speeds from Alcatel Lucent Lab tests

5. 5 Placing VDSL2 Orcon/Kordia/Callplus has argued that the move to VDSL2 will extend the economic life of the cabinet to 20 years (2028) VDSL2 from the cabinet will only deliver 20 Mbps. This is unlikely to satisfy customers for more than 10 years (on average). To deliver the benefits of VDSL2 – 70 Mbps (on average)- we need to get VDSL2 technology to within 300m copper line of each house. This is FTTC, which will not use FTTN cabinets.

6. 6 When will FTTN be overtaken? It is clear that it will be less than 20 years (2028). In 10 years, customers will not be satisfied with 20Mbps In places, FTTC or FTTH will be here in 5 years Chorus estimates an average cabinet life of 10 years (2018)

7. 7 Cabinets will be redundant when FTTN is overtaken Post-FTTN cabinets need to be in a different place. Post-FTTN cabinets will be a different size. Post-FTTN cabinets will not need power. When making the transition from FTTN to FTTH, the old cabinets need to stay working while the new cabinets are installed.

8. 8 FTTH cabinets will be in a different place FTTN cabinets need to be situated close to the customers premise, to shorten the copper lengths. FTTN cabinets are placed to serve a maximum of 330 working lines, this allows for infill growth. FTTH cabinets don’t need be close to the customers premise. FTTH cabinets can serve 512 working customer lines. FTTH cabinets will be located further away from the customer and will aggregate more customers. FTTN and FTTH cabinets are located in different geographical positions for different reasons. It is uneconomic to locate FTTH cabinets where we locate FTTN cabinets.

9. 9 Re-using FTTN Cabinets is unrealistic. A FTTN cabinet is power fed. A FTTN cabinet fills the maximum allowable space under RMA rules for cabinets. A FTTH “PON” cabinet is a lot smaller and requires no power. It is overbuild - to remove and refurbish a large FTTN cabinet in order to relocate it to house the small FTTH “PON” equipment. We could not fit the “PON” equipment in the FTTN cabinet. FTTN and FTTH cabinets would need to be simultaneously working in order to migrate customers over without disruption.