1. Paving the way towards the new TV-era FTTH Strategies & Complementary Innovations in Copper
Athanassios
Karanassis
Regional Sales
Manager

2. ADTRAN – Foundation for Success
Reliable access for today’s communications
Founded in 1985
Comprehensive product portfolio – Carrier and Enterprise Solutions
2,000+ employees worldwide (>700 in R&D) – excluding NSN BBA
In 2012 the acquisition of the Nokia Siemens Networks Fixed Line Broadband Access Business was announced
Product Development Locations
Huntsville, AL (Corporate HQ)
Phoenix, AZ
Mountain View, CA
Ottawa, Ontario
Boston, MA
Greifswald (EU-R&D HQ)
Financially Stable and Conservative
25 years of continuous profitability
2011Revenue = $717M
Net Cash >$396M
Debt Free
Broadband Access Solutions
#1 in MSAP port shipments in the U.S.
Top 5 in MSAP port shipments globally
Top 2 in Broadband DSL in the U.S.
Top 4 in Broadband DSL globally
#1 in sealed Fiber-to-the-Node globally
Mobility Infrastructure
#1 in Mobile Backhaul connections in North America
Enterprise Solutions
Top 2 in Branch Office Routers in the U.S.
#1 in SIP Trunking & VoIP access in the U.S.
#1 in IP Business Gateways in the U.S.

3. Topics
Current Architectures and Infrastructures promote deep fibre deployments
Fibre – What is the market for actual fibre to the home
Vs the Market for high speed broadband?
Sustainable investment
Ubiquitous FTTH is the ultimate future
Decreasing ARPUs – Increased Competition & Regulation are the reality
Innovations in copper access complement FTTH strategies
© ADTRAN Inc All rights reserved.

4. A common FTTH scenario Fibre Here
Want to deliver high speed broadband here!
Note the road and sidewalk

5. Today’s Customer Network
Problem Area
€€€
Cross Box
Subscriber Drop
Distribution Point (DP)
[Subscriber Drop Pedestal]
8-16 homes per DP
Drop length < 75m
Pole mount or below ground mount in footway box

6. FTTH in Challenging Environments
FTTH Cost prohibitive in such a scenario
Trench Fibre in sidewalk to home (€€€)
Sidewalk/Road
Install ONTs (one per home)
(€€)
ONT
ONT
Add New Optical Access Point (€)
Install Ethernet from ONT into home (€€)
ONT
ONT
Opt. Splitter
ONT
ONT
ONT
ONT 6

7. FTTH: What is the real market?
Prepared to pay a premium because it is a Fibre Service
Likely retain or take up Service offering
Because of the Bandwidth Speed
© ADTRAN Inc All rights reserved.

8. Ultra Broadband Ethernet Promotes Fibre investment with acceptable ROI
This Type of FTTH Deployment often cost prohibitive
What if we could bring the ONTs to the fibre instead?
Sidewalk/Road
ONT
ONT
Ultra Broadband Ethernet ONT (€)
ONT
Easy Install (€)
ONT
UBE ONT
ONT
Ethernet over Existing Subscriber Drops
ONT
ONT
ONT
Delivers 100Mbps or more at a fraction of the cost and time of FTTH 8

9. Technology Adoption Acceleration New Dangers emerge quickly
Radio took 38 years to reach 50 million people
TV took 13 years to reach 50 million people
The Internet took 4 years to reach 50 million people
Skype took 2 years to reach 50 million people
iPlayer, NetFlix, AppleTV (10s of Millions of users)
For successful start-up services, 2 to 4 years to hit 50 million users is the new norm
Who are you deploying the fibre for?
Will your ARPUs increase because it is fibre based?
What new service will exploit the fibre to further increase your ARPUs?
Caution – Right-size the investment
Attract new customers – Defend against Churn – Achieve sustainable returns on network investments
© ADTRAN Inc All rights reserved.

10. Influence on ARPU?
© ADTRAN Inc All rights reserved.

11. Bandwidth hungry apps: Example IP-TV
MPEG4: 2,5Mbps
HD: 4-6Mbps
PVR: 6Mbps
Average number of TV sets: 3 per household
Maximum requirement for TV: 24Mbps

12. Innovation provides the right tools
INCREASED ROI
ADSL2+: basic internet access & SD video – up to 24Mbps
FTTN/Cabinet w VDSL2:
Up to 100Mbps DS, 50Mbps US (400Mtrs to 800Mtrs depending on vectoring and bonding)
Appropriate for cross connects with short loops
FTT-DP Ultra Broadband Ethernet today G.Fast in the future
100Mbps symmetric today
250Mbps in near term
1Gbps in the longer term.
FTTH: Greenfield and select brownfield
Can easily do 100Mbps and beyond
Only cost effective in greenfield or certain brownfield scenarios

13. Copper Innovation Near FTTH Speeds
Performance is similar to FTTH
Exceeds DOCSIS performance with high loads
Addresses peak speed issue for FTTN-VDSL2
Realized Speed
2020 Projection
Load per subscriber
© ADTRAN Inc All rights reserved.

14. Sustainable Investment
The market majority do not buy technological solutions.
Headline speed combined with price drives sales
ROI requirements for Telco’s are getting shorter as markets get tougher.
Tighter regulation, New entrant competitors, OTT Services
Critical not to over invest in the smallest market segment
While neglecting the largest market segment
Investments should support acceptable ROI in the face of declining ARPUs
High risk to depend on increasing ARPUs
Sweat the installed copper asset base while supporting ever deeper fibre penetration
Focus scarce investment capital towards the largest possible market segments.
© ADTRAN Inc All rights reserved.

15. Thank you athanassios.karanassis@adtran.com
Innovation
© ADTRAN Inc All rights reserved.