Ethernet To The Home 2000 Cisco Systems

Ethernet To The Home © 2000, Cisco Systems, Inc. 1

Ethernet To The Home ETTH is aimed at serving residential and SMB customers located in Multi Dwelling Unit with Ethernet connectivity at a competitive price point and operating costs when compared to other fiber to the building option Always on connection Fixed monthly cost (EU$ 50/month) Two-way communication The greatest potential: 100 Mbps The cheapest: GE over fiber © 2000, Cisco Systems, Inc. 2

Business Proposition Market Overview WHAT – ETTH for residential, SOHO and SMB – Located in Mx. U – Always on 10/100 Mbps Ethernet connectivity – Companies, having gained the right to use conduits and fibers owned by parent companies, which have digging permits WHO – Multi-utilities (Gas, Water, Power) operating in major Cities, who own the land where the cables are laid – > 60 cities in Europe have seen multiple operators deploying new metro networks – lighting dark fiber in metropolitan area networks (MANs) – delivering Ethernet connections to newer buildings HOW – wiring building – offering Ethernet, vast amounts of cheap bandwidth when compared with DSL, cable, and wireless. © 2000, Cisco Systems, Inc. 3

Ethernet Price Trend – Source Dell’Oro © 2000, Cisco Systems, Inc. 4

Cost of delivery bandwidth Megabit/Port/Month/US$ 10000 SONET ATM GE 1000 10 1998 1999 2000 2001 2002 2003 2004 2005 Year SOURCE: BCR Sept, 2000 by Peter Sevcik, Net. Forecast, Waltham, MA © 2000, Cisco Systems, Inc. 5

Benefits Customers, Owners and Content Providers Value to the Consumers Value to the Property Owners High-speed access at the “first mile” Increased value of the property Always-on services (no slow dial, time-based billing) Only one cable infrastructure to maintain Voice for “flat fee” model Property automation possible Walk Away 1 or 10 GE on Metro Fiber Rings Walk Away E-commerce Communications/collaboration Dataquest © 2000, Cisco Systems, Inc. Customer relationship management Finance/accounting Education/training Human resources Value for Content Partners Broadband content distribution Stimulate local content partners with niche exclusivity Marketing possibilities on start page Customer information access Video and Internet Integration 6

Internet Home Solutions Family Management Commerce Communications Home Control and Security Shared Devices Internet Access © 2000, Cisco Systems, Inc. Entertainment 7

Dataquest Next-Generation MAN PREDICTS 2000 Traditional Telco network Voice-oriented connectivity CS Telco Central Office u te rs s ATM Switch Ro MUX SU MUX U/ D s U/ D SU rs ATM Switch CS u te Ro Ethernet LAN TELECOM SONET Ethernet LAN Telco Central Office Next-generation IP over fiber network using Ethernet and derivatives up to gigabit speeds Ethernet LAN Edge Switch Gig WAN Router Edge Switch Ethernet LAN 8 © 2000, Cisco Systems, Inc. 8

Network Architecture Overview Central Office Local Content Providers GSR Internet Cisco 12000 Internet Routers Distribution layer Catalyst 6500 Access layer 3500 -XL with LX/LH, ZX GBICs Residential CPE 10/100 Mbps to each apartment Gigabit Ethernet Links, SX, LX/LH, ZX on Metro Fiber Rings SOHO & SME CPE 10/100 Mbps Walk Away Catalyst 3500 XL in the basement © 2000, Cisco Systems, Inc. 9

Single house Set Top Box with 2 SCART connections for the TV and VCR 10/100 Mbit/s 300 kbit/s per household per Internet Access Residential CPE Star topology Access Layer Switches Catalyst 4006, Layer 3 card Port density per 4006: 192, 1 GE Dedicated Ethernet ports TV Ethernet Internet Access 2 x. STM-1 (1000 users) Distribution Switch Catalyst 4006, Layer 3 card Internet Cisco 12000 Internet Routers or 7200 Service Network Internet-VLAN Service Network TV-VLAN Imagic. TV Server © 2000, Cisco Systems, Inc. Local Content DHCP Server 10

Double Rings Architecture GBE ring 2 nd level DPT GSR 12000 Internet Routers Long Haul Metro/Regional GBE ring 1 st level (POS or DPT) Cisco 3512 GBE ring 2 nd level DPT 6509 Cisco 3512 GBE ring 2 nd level DPT Cisco 3512 Cisco 3512 © 2000, Cisco Systems, Inc. Cisco 3512 11

Design Requirements • Density of subscribers per metro area • Deployment of content rich application such as video and voice • High bandwith requirements • Quality of Service • Security • Ease of Network Deployment and Upgrade • Cost of Network Equipment • Subscriber Authentication, Access Control and Billing • High-Speed Link Failover Converge Time • Use of Existing Cable Infrastructure • Interface to Regional Telco Network and Internet © 2000, Cisco Systems, Inc. 12

Solution Benefits èCost Effectiveness èNew Revenue Streams èHigh Performance èEase of Deployment èInvestment Protection © 2000, Cisco Systems, Inc. 13

In-building connectivity 1. New UTP CAT-5 within the building Drawback: no space for extra cable in the existing buildings, longest reach is 100 meters 802. 3 2. New multi/mono mode fiber Drawback: current issue with the copper based Ethernet 10/100 Mbps on Catalyst 3500 XL; E/O converters are required adding 200$/user 3. Existing telephone copper pairs with VDSL Drawback: deregulation issues, normally owned by the incumbent 4. 802. 11 W-LAN coverage Drawback: requires frequencies and it has speed limits (11 Mbit/s per cell) 5. MATV coax cabling with DOCSIS © 2000, Cisco Systems, Inc. 14

Full Optical in building wiring Benefits Simple to deploy Flexible, it can fit well within the MDU and in the apartment No FEXT/NEXT issues Future-proof, easy upgrade to GE access Unlimited bandwith Quick user activation Today: uses o/e converters © 2000, Cisco Systems, Inc. Cisco Products: coming with next Cat 3500 XL-3 15

Copper alternative: LRE • Enables the use of Ethernet over existing, unconditioned, telephone-grade wire • Enables Ethernet to coexist with “plain old telephone service” (POTS), Integrated Services Digital Network (ISDN) or PBX signaling services • Uses newest DSL coding and digital modulation techniques with Ethernet • Provides a point-to-point transmission that can deliver a symmetrical, full-duplex, data rate of up to 15 Mbps • LRE products are simple to install and interface with any existing Ethernet solution © 2000, Cisco Systems, Inc. 16

Professional, SOHO & SME CPE è Cisco 1605: providing Low end routing capabilities. The Cisco 1605 R router provides a 10 Base. T and an AUI port on the first Ethernet interface and a 10 Base. T port on the second Ethernet interface. New èCisco 1751: The one-port Ethernet WIC (WIC 1 ENET) offers customers the option of an additional Ethernet port, allowing broadband Internet access or deployment of a perimeter LAN or demilitarized zone (DMZ). Vo. IP port availability è Cisco 2611: providing entry level routing capabilities with two Ethernet ports. Vo. IP port availability è Cisco 2621: providing entry level routing with two 10/100 Mbps auto-sensing Ethernet Port. Vo. IP port availability. New è Cisco 806: as low cost ethernet-to-ethernet IOS router but it won't include Vo. IPproviding. You can combine it with Komodo to enable Voice support. è Non CPE, a customer Desktop/Server, or a customer LAN, can be directly connected to the E/FE 10/100 port. © 2000, Cisco Systems, Inc. 17

Cisco Solution Benefits Security Quality of Services Multicast Media Support Subscriber Auhentication, Access Control and Billing Link Resiliency Node Scalability Intelligent Network Services Benefits © 2000, Cisco Systems, Inc. 18

Residential Voice • Access Zone: RAS functions • Application Zone: Handles Residential Services • Infrastructure Zone: Handles PSTN interface, Directory Gatekeeper (if needed), etc Access Zone Application Zone Infrastructure Zone Net. Speak Route Media Server Billing & Management Servers Cisco GK V PSTN Net. Speak Residential GK Packet Network Call Control and Signaling A must to have…. but not a business driver © 2000, Cisco Systems, Inc. 19

Typical Customer Video Bundle • Video services are packaged into bundles… Broadcast Video ~100 channel line-up, basic + premium tiers Electronic Program Guide (EPG) Web on TV and Interactive Video Enhancements VOD, Pay-Per-View Streaming Media Services Ad Insertion Personalized TV Capabilities Rapidly becoming part of the bundle …which in turn become part of overall service bundles including voice, video and data © 2000, Cisco Systems, Inc. 20