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Joint ITU/IEEE Workshop on Ethernet - Emerging Applications and Technologies FTTx Access in North Joint ITU/IEEE Workshop on Ethernet - Emerging Applications and Technologies FTTx Access in North America, Europe, and Other Regions – Status and Perspectives Martin Carroll, DMTS - Verizon martin. carroll@verizon. com Geneva, Switzerland, 22 September 2012

Outline FTTx in North America Verizon Other deployments FTTx in Europe FT Vodafone FTTx Outline FTTx in North America Verizon Other deployments FTTx in Europe FT Vodafone FTTx in Middle East, other regions Etisalat Geneva, 22 September 2012 2

FTTx in North America Geneva, 22 September 2012 3 FTTx in North America Geneva, 22 September 2012 3

FTTH Accelerating in North America Geneva, 22 September 2012 4 FTTH Accelerating in North America Geneva, 22 September 2012 4

Percent FTTH Connections by Country 930 North American, 880 U. S. providers 97% U. Percent FTTH Connections by Country 930 North American, 880 U. S. providers 97% U. S. providers have < 10 K FTTH connections Geneva, 22 September 2012 5

Verizon: Global Leader Advanced foundational platforms Geneva, 22 September 2012 Headquartered in NYC Largest Verizon: Global Leader Advanced foundational platforms Geneva, 22 September 2012 Headquartered in NYC Largest U. S. wireless company, with 107. 8 M total connections Largest 3 G & 4 G LTE networks in the U. S. Global IP network reaches customers in > 150 countries Over 485, 000 route miles First to deploy commercial 100 Gb/s ultra-long-haul optical system Average 1 billion calls daily Leading FTTP deployment in North America 6

Fi. OS Deployment Fi. OS Service is available in 12 States & Washington, DC Fi. OS Deployment Fi. OS Service is available in 12 States & Washington, DC Fi. OS Internet Launched 2004 Up to 300 Mb/s down & 65 Mbps up 1 Gb/s trials successful Fi. OS Video/TV Launched 2005 130 HD & 530 SD channels Initial deployment BPON GPON introduced 2007 XG-PON trials successful Over 17 M premises passed Fi. OS Growth 2004 2012 Stats as of 1 H 2012 Customers Net adds in 2 Q 2012 Penetration (Sales/Premises marketed) Fi. OS Internet 5. 1 M 134, 000 36. 6% Fi. OS TV 4. 5 M 120, 000 32. 9% Geneva, 22 September 2012 7

Fi. OS Architecture Data path used for Vo. D and IPTV Video overlay Geneva, Fi. OS Architecture Data path used for Vo. D and IPTV Video overlay Geneva, 22 September 2012 WDM replaced with 2 x 2 splitter for 1: 64 split Up to 1 x 32 splitter Mo. CA for in-home distribution 8

Successful XG-PON 1 Trials Broad-cast Video Home Network Central Office Router EDFA Class 5 Successful XG-PON 1 Trials Broad-cast Video Home Network Central Office Router EDFA Class 5 Switch PSTN GPON ONT STB Cat 5 GPON OLT Internet / VOD Coax 1 x 2 Splitter Gateway Router XGPON 1 OLT STB WDM 1 r Splitter Test PC IP Test Set FDF Test Cart XG-PON 1 ONT IP Test Set FDH STB Converter Router Test PC Huawei XG-PON 1 overlaid on Motorola GPON WDM 1 r integrates GPON & XG-PON wavelengths Successfully demonstrated: 10 G down x 2. 5 G up capable; 1 Gig home network Coexistence of XG-PON & GPON Geneva, 22 September 2012 9

XG-PON 2 Proven XG-PON 2 Symmetric 10 Gb/s Downstream and Upstream Used existing ODN XG-PON 2 Proven XG-PON 2 Symmetric 10 Gb/s Downstream and Upstream Used existing ODN in Taunton, Massachusetts Alcatel-Lucent equipment Viability demonstrated 10 Gb/s upstream channel viable, could be basis for NG-PON 2 Support greater upstream bandwidth for adoption on a mass scale of new and emerging business and residential applications Geneva, 22 September 2012 10

Residential Drivers Bandwidth Growth Need for SPEED Consumer speeds increasing at 6 -10 x Residential Drivers Bandwidth Growth Need for SPEED Consumer speeds increasing at 6 -10 x every 6 years Throughputs in excess of 1 Gbps are expected by 2015 Competitive advantage Source: Cisco New services/technologies Gain operational savings via copper replacement Central office consolidation Downloading HD & 3 D video content UGC Sharing Geneva, 22 September 2012 Multi-location 3 D Larger screens require HD video higher resolution conferencing 11

Central Office Consolidation Opportunity 273 COs PON Reach at 20 km allows Number of Central Office Consolidation Opportunity 273 COs PON Reach at 20 km allows Number of COs to reduce to 30 -40 km PON distance appears ideal balance between cost and technology PON Reach is 30 km allows Number of COs to reduce to Geneva, 22 September 2012 58 29 12

Business Drivers Ethernet Services SES (Switched Ethernet Service) Point to Point or Multipoint Ethernet Business Drivers Ethernet Services SES (Switched Ethernet Service) Point to Point or Multipoint Ethernet service 10 M, 100 M, and Gig. E UNI options EPL (Ethernet Private Line) Wireless Backhaul Microcell site support Distributed e. Node. B CPRI backhaul Macrocell Ethernet backhaul Optical Services OWS (Optical Wavelength Services) Dedicated wavelength – 10 G or 40 G Point to point service Various client side handoffs, e. g. , Ethernet, SONET, FC etc. OTN (OTU 1 – OTU 3) SONET (OC 3 -OC 192) EDSR (Enhanced Dedicated SONET Ring) Dedicated fiber in the access loop Services currently supported over GPON will be expanded and enhanced with Verizon’s 3 rd Generation PON driving economies of scale Geneva, 22 September 2012 13

Access PON Evolution Vz’s 3 rd Generation PON G-PON GPON B-PON Initial Deployment Rates Access PON Evolution Vz’s 3 rd Generation PON G-PON GPON B-PON Initial Deployment Rates to 30 Mpbs Consumer/Small Business Market 1: 32 Splits Geneva, 22 September 2012 G-PON Current Deployment Rates up to 400 Mbps Limited Business Circuits OTT Video Improved Economies of Scale: 1: 64 Splits Common platform to support residential and business services Deployable within existing infrastructure Splitter based FTTP architecture Connectorized system RF overlay Coexist with GPON Protection and resiliency options Demonstrated multi-vendor plug-an-play interoperability between OLT and ONU’s Fully deployable by 2015 14

3 rd Gen Candidates NG-PON 2 System Rate 10/2. 5 Gb/s 40/10 Gb/s Subscriber 3 rd Gen Candidates NG-PON 2 System Rate 10/2. 5 Gb/s 40/10 Gb/s Subscriber Rates (up to) 2. 5 Gb/s Symmetrical 10 Gb/s Symmetrical Standards ONTs Being Deployed XG-PON 1 ITU-T G. 987 series Developing ITU-T G. 989 series Coexistence with G-PON Demonstrated on Verizon To Be Standardized infrastructure Interoperability Current activity in FSAN & BBF Migration Demonstrated on Verizon Required infrastructure Availability 2011 Target 2015 G-PON B-PON 2004 2007 VIF, ITU, FSAN, & BBF 2011 XG-PON 1 2015 NG-PON 2 2020 NG-PON 2 is “best-fit” for Verizon Focus Standards and Interoperability development to meet the timeline Geneva, 22 September 2012 15

Other FTTx Deployments AT&T, Century. Link have significant FTTC/FTTP deployments Chattanooga public utility (EPB) Other FTTx Deployments AT&T, Century. Link have significant FTTC/FTTP deployments Chattanooga public utility (EPB) offered gigabit FTTH for 3 years Google Fiber to launch 1 Gb/s in Kansas City “fiberhoods” in October Gig. U to deliver 1 Gb/s drops in areas around universities Geneva, 22 September 2012 Google “Fiberhood” 16

FTTx in Europe Geneva, 22 September 2012 17 FTTx in Europe Geneva, 22 September 2012 17

FTTx in 2012 for France Geneva, 22 September 2012 18 FTTx in 2012 for France Geneva, 22 September 2012 18

Conquest 2015 Geneva, 22 September 2012 19 Conquest 2015 Geneva, 22 September 2012 19

Geneva, 22 September 2012 20 Geneva, 22 September 2012 20

Portugal As of September 2012, Vodafone has over 35, 000 customers on FTTH access. Portugal As of September 2012, Vodafone has over 35, 000 customers on FTTH access. Alface project has been running commercially since September 2010, Libra project has been running commercially since March 2011 Since September 2012, we have 476, 000 homes passed. FTTH GPON is the technology used, with analogue/digital video overlay. Geneva, 22 September 2012 21

Capacity FTTH deployments offer much higher bit rates to customer. Vodafone Portugal base offer Capacity FTTH deployments offer much higher bit rates to customer. Vodafone Portugal base offer is 50/5 Mb/s, with Internet Profiles up to 400/40 Mb/s to Residential subscribers. About 80% of our installed base subscribe to IPTV services. On-demand TV service (Restart. TV) has increased the overall backhaul traffic and traffic per user. Some copper deployment is not suitable to deploy these bit-rate demanding services as VDSL 2 is not viable Geneva, 22 September 2012 22

Interoperability OLT vendors already offer integrated gateways, but with few functionalities - today these Interoperability OLT vendors already offer integrated gateways, but with few functionalities - today these gateways can’t replace the already deployed CPE + L 2 ONT, they are expensive and they can’t work in a multivendor environment. Vodafone’s goal is to have an integrated Home Gateway (similar to DSL) that can interoperate in a multi-vendor environment. This will reduce acquisition and retention costs, the amount of equipment installed in customer premises and simplify logistics. Geneva, 22 September 2012 23

Other European Projects Vodafone Germany has two FTTC trials under way in the cities Other European Projects Vodafone Germany has two FTTC trials under way in the cities of Wuerzburg and Heilbronn. Vodafone Italy is starting a project to deliver FTTH services with GPON technologies in Milan by using the Metroweb fiber network Geneva, 22 September 2012 24

FTTx in the Middle East, Other Regions Geneva, 22 September 2012 25 FTTx in the Middle East, Other Regions Geneva, 22 September 2012 25

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African Projects Vodafone Ghana is deploying FTTC for increasing data rate to customers by African Projects Vodafone Ghana is deploying FTTC for increasing data rate to customers by using GPON as technology for backhauling street cabinet DSLAMs Vodacom South Africa is staring a project for delivering FTTH services to business and high spending residential customers using GPON technology Geneva, 22 September 2012 35

Australia and New Zealand In Australia, NBN Co will deploy 181, 000 km of Australia and New Zealand In Australia, NBN Co will deploy 181, 000 km of GPON network, and 57, 000 km of transit backhaul. Aerial drop fibre to be used for 25% of households Provides a bitstream service with equal service terms to all ISPs, including Telstra, which will lose control of the copper. High interest in an open PON solution to overlap to their initial GPON in order to give ISP freedom to install their own OLT at the Central Office In New Zealand, the government is deploying a NZ$1. 5 billion UFB (Ultra Fast Broadband Initiative) access fibre network through Crown Fibre Holdings (CFH). FTTH to be available to 75% (800, 000 homes and businesses ) of the New Zealand market by 2019 Vodafone New Zealand will buy Layer 2 products from the LFCs to deliver FTTH in the retail market. GPON for residential and point to point for large businesses. 100 Mbps down and 50 Mbps up. Geneva, 22 September 2012 36

THANKS! Geneva, 22 September 2012 37 THANKS! Geneva, 22 September 2012 37