1. Next Generation Access Ivan Boyd BT Research and Venturing

2. © British Telecommunications plc NGA - The Barriers Barriers: High upfront capital investment Large civil infrastructure costs and effort Uncertain Operational Cost Uncertain take-up rates Uncertain revenues from new broadband services Regulatory Uncertainty

3. © British Telecommunications plc BT Current Position on FTTP BT infrastructure operations in separate unit called Openreach Openreach will own infrastructure of future Optical Access/ Metro Network Openreach provides equal access for all Communications Providers (CPs) - Equivalence of Input (EOI) FTTP viable in Greenfield sites with ~>20 premises – (actual number depends on detailed economics) GPON preferred FTTP solution No commitment at this point to mass market roll out of FTTP.

4. © British Telecommunications plc Research to address the Challenges Capital Cost - New architecture to eliminate equipment - Improved and more efficient deployment processes - Maximise the lifetime of infrastructure (plan day 1 for evolution) Operation Cost - Simplify the network - Consolidate nodes

5. © British Telecommunications plc Research Network Vision 100km 1000-way split 10Gbit/s

6. © British Telecommunications plc Steeping stones to the Vision 1. Extended Reach GPON (60km reach, 128-way split, 2.5/1.25Gbit/s) ONU 4x32-way Split 4X44X4 60km 128-way total split Local Exchange OLT S OLT W 2. Asymmetrical Long Reach (100km reach, 512-way split, 10/2.5Gbit/s) CORE NODE CORE NODE CORE NODE METRO NODE METRO NODE ACCESS/ BACKHAUL CUSTOMER LR-PON Services Jack PC Server Video Server HD CCTV Xbox 360 HD CCTV Media PC Jack PC Client Video Client Demo 1: Demo 3: Demo 2: Demo 3: 100km GPON Client OLTONT hiD 6630 IP/MPLS P Cisco CRS Super Metro Node Optical Core DWDM P GMPLS control hiD 6670 Core Ethernet Core Ethernet PBT/PBB-TE hiD 6670 Core Ethernet OLT Switch PE Aggregator

7. © British Telecommunications plc Capex savings: Conventional FTTH vs Long reach PON FSAN PON 1:1 Duct Build Fibre Enclosures Fibre Cable Splitters SDH Backhaul Exchange Electronics 50% Penetration, No Duct Build PON – backhaul Cost per Customer ONU's Fibre Enclosures Fibre Cable Splitters Backhaul Exchange Electronics Urban Rural Long Reach PON PON – backhaul Long Reach PON

8. © British Telecommunications plc Infrastructure Research – Deployment Cost savings Cost reduced by ~1/3 Single man blown fibre Overhead Blown fibre Duct congestion relief

9. © British Telecommunications plc backhaul Evolution to Future networks-extending the infrastructure life Day 1 Greenfield GPON deployment Fibre lean cable back towards Exchange Local Exchange to metro node Cable chamber GPON-ONU LR-ONU At day one install WDM couplers in local exchange GPON LR-ONU GPON GPON –ONUs with blocking filters Optical NTE to simplify ONU upgrade

10. © British Telecommunications plc backhaul Upgrade to Long Reach PON Fibre lean cable back towards Exchange Local Exchange to metro node Cable chamber GPON-ONU LR-ONU GPON LR-ONU GPON LR-ONU GPON OLT removed from local exchange LR-ONU

11. © British Telecommunications plc Capex savings: Long reach PON + Optical NTE deployed with infrastructure FSAN PON 1:1 Duct Build Fibre Enclosures Fibre Cable Splitters SDH Backhaul Exchange Electronics 50% Penetration, No Duct Build PON – backhaul Cost per Customer ONU's Fibre Enclosures Fibre Cable Splitters Backhaul Exchange Electronics Urban Rural PON – backhaul ONU Long Reach PON Long Reach PON Optical NTE

12. © British Telecommunications plc Operational Cost High Density Pop, Head End Consolidation 5km 20km 20km 1x4,1x8 1x4,1x8 1x4,1x32 OpEx 51% OpEx Savings 59% OpEx Savings

13. © British Telecommunications plc Fiber-Related OpEx High Density Pop, Head End Consolidation 5km 20km 20km 1x4,1x8 1x4,1x8 1x4,1x32 8.8% Savings/Sub/yr 47% Savings/Sub/yr Even greater savings to be expected with LR-PON

14. © British Telecommunications plc CO-Related OpEx High Density Pop, Head End Consolidation 5km 20km 20km 1x4,1x8 1x4,1x8 1x4,1x32 75% Savings/Sub/yr 4 COs 1 CO Greater CO consolidation with LR-PON. Therefore much greater savings anticipated.

15. © British Telecommunications plc Conclusions There is no economic case for large scale FTTP roll out in the UK based on existing solutions Research team investigating a radical “Long Reach PON” solution that changes the economic structure of networks: –Longer reach access to eliminate metro networks –Higher capacity – 10GBit/s symmetrical –Greater split/sharing to improve economics –Network simplification and node consolidation to reduce opex –Optical NTE and Self-install ONU to reduce capital cost of the infrastructure provider and simplify upgrades An intermediate step could be extended reach GPON There is an on-going need for infrastructure research that addresses more efficient fibre deployment