Photonics Systems Roadmap 2005 -2010 June 2005 Örjan

Photonics Systems Roadmap 2005 -2010 June 2005 Örjan Mattsson Photonics systems roadmap www. isa. se 1

Photonics Systems Performance, bitratexdistance Earlier primarily technology driven Optical: 9 month Time to Double Storage 12 month Silicon: 18 month (Moore’s Law) Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Photonics systems roadmap www. isa. se 2

Photonics Systems Hierarchies Oxc DXC ROADM PROTECTION PDH DIG MUX D/CWDM SDH ASON? OED NG SDH ADM Automatic Switched Opt. Ntwk PDH 1980> SDH 1990> Next Gen 2000> 2010> Point-to-Point Networking Datacentric Dynamic Photonics systems roadmap www. isa. se 3

General Trends ¡ Data becoming the dominating traffic type ¡ Multiservice network based on IP ¡ Fast expansion of broadband subscribers ¡ The convergence between fixed and mobile ¡ The open network concept Photonics systems roadmap www. isa. se 4

Traffic type and yearly growth Today doubling in capacity every 18 months, earlier 5 -10 years ! But revenues per bit are falling with 50% a year Volume Data Internet +70% Non IP +30% Voice 5% Year 2000 Photonics systems roadmap www. isa. se 5

PSTN CATV FIBER LAN TELEPHONY TV INTERNET DSL Internet, IP-TV Modem Internet, Vo. IP IPTV, Vo. IP TRIPLE PLAY Multi. Service Network ¡ Multiservice network all IP based, extending Internet access to Triple Play service ¡ Strong competition between different access providers/operators as PTT (DSL), CATV (modem) and greenfielders (fiber, radio). DSL will run into speed problems. ¡ PTT starts to support FTTx, Japan installs more fiber than ADSL. Korea next generation access 100 Mb/s FTTx. Verizon invests 1020 BUSD in a coming 10 -20 years period Photonics systems roadmap www. isa. se 6

The Converged Multiservice Broadband Network Triple Play IETF (Internet) VOICE DATA Multimedia over IP IEEE (Ethernet, WLAN) IMAGE DVB ( TV distr. ) ITU-T (Telecom) Lack of common standards Photonics systems roadmap www. isa. se 7

Broadband Subscribers growth Broadband defined as more than ISDN and “ Always On” Mlines 2003 2004 ADSL 60 96 Cable 36 49 Fiber 2 3 100 150 Tot ¡ ¡ ¡ Broadband subscribers growth 50%, makes it the fastest growing in telecom sector Traffic volume per subscriber have similar growth, i. e. doubling in total traffic Asia 43% share of broadband lines, America 29% and Europe 28% South Korea leading in penetration, 24, 8 lines per 100 people, Sweden 14, 4 lines corresponding to more than 30% of the households Fiber has significant contribution in, Italy, Sweden, Japan, South Korea, China Source: Point Topic, Photonics systems roadmap www. isa. se 8

The Converged Multiservice Fixed and mobile Network PSTN MSTN CATV FIBER, WLAN TELEPHONY MOBILE TELEPHONY TV INTERNET x. DSL Internet Mobile Internet DVB-H, DMB Cable Modem Internet IP-telephony IPTV MULTI-SERVICE IPbased Step 1: Common services and service platforms Step 2: Roaming with session continuity, always best connected Step 2: Common core and metro aggregation ntwk, separate access Photonics systems roadmap www. isa. se 9

The Open Network – The Multi Operator Network All Service Providers can reach and be reached by all End Users Serviceproviders The öppna. Network Det Open nätet End Users Photonics systems roadmap www. isa. se 10

Application and Services in the Multiservice Broadband network Private Sector ¡ ¡ ¡ Internet access, 10 Mb/s-> 100 Mb/s IP telephony, picture phone IP-TV and Vo. D, SDTV/ HDTV 5/20 Mb/s Real time access to work environment Interactive games, 10 Mb/s + Public services Enterprise Sector ¡ ¡ ¡ LAN interconnect, Gb. E and Mb. E ATM, connection oriented packet service VPN, Virtual Private Network layer 1/ 2 / 3 Storage network, Ficon, Escon, Fiber Ch. SIP based communication Vo. IP, video, . . Video Conference Qo. S, N x Mb/s Public Sector ¡ ¡ ¡ E-government services, Qo. S as triple play E- health, E-education VPN networks for public authorities Local Information channel Enterprise sector services Network Services ¡ ¡ ¡ VPN tunnels IPv 6, IP sec Peering Peer-to-peer ( file sharing) Nomadic access Photonics systems roadmap www. isa. se 11

The broadband connected household 10 -50 Mb/s Ethernet Interactive Gaming Videokonference Set Top Box O/E IP TV-channels + Vo. D services 100 Mb/s sym. SM, MM, Cat 5 2 x 5 Mb/s Computers Telephone 2 x 20 Mb/s TV Real Estate services e m ar Al o yb dr un La king o gy ing er tor En oni m ck Lo Home station Photonics systems roadmap Triple Play HDTV www. isa. se 12

Network Trends ¡ The future network will be based on IP/ packet aiming at convergence and layer reduction, simplification and flexibility. Core Optical Network ¡ It is a multiservice network handling best effort traffic, Qo. S data and legacy services. Still open issues how to do it. ¡ Ethernet, due to its low cost , is migrating into public domain but lacks today carrier class transport properties Metro/Regional Network Broadband Access ¡ Next Gen Optical Products can handle both packet and TDM traffic and can interact with legacy equipment and network ¡ Intelligence in the optical layer will allow remote network configuration. A common control plane with the IP layer will enable automated switched network ASON/ GMPLS ¡ Optical transparency to reduce the need of O-E-O conversions Photonics systems roadmap www. isa. se 13

Simplified view of the fixed network Backbone Core Residential Access AN XC Metro EN Access AN Enterprise Access OED Metro Core XC Cross Connect EN Edge Node AN Access Node EN Metro Access AN AN Residential Access DSL, Cable Fiber, Radio Access network: Critical regarding capex as every cost is per subscriber but well defined from user and service perspective. Metro access: Multiarchitecture challenge. Aggregation of all subscriber services with Core network: different Qo. S to multioperators and multiservices core network Transport mainly handled by OED: s, sometimes CWDM is added. Architectural issues including interoperability in the metro core, where mainly NG-SDH/ SDH and DWDM with (R)OADM are used. Technological challenges in the backbone network with ”fat” pipes of DWDM and higher order SDH. Grooming and switching in OXC. Photonics systems roadmap www. isa. se 14

Two important set of standards to more efficient handle data traffic IETF OSI layered network MPLS, label switching ¡ Circuit oriented packet switching ¡ Traffic engineering (protection, . . ) ¡ Traffic separation (VPN tunnelling) ¡ Basis for GMPLS IP 3 2 1 0. 5 Ethernet ( MPLS) ATM SDH FR Opto Lambda ITU-T Ethernet GFP VC ODU OH OH STM SDH (G 707) FEC OTN GFP, Generic Framing Procedure ¡ Standard mapping of data into frames OTN, Optical Transport Network ¡ New frame structure, parallel with SDH ¡ Direct mapping of data on wavelength OTN ( G 709) Photonics systems roadmap www. isa. se 15

Switching and Transparency Dynamic handling of network resources ¡ ITU-T has defined an architecture for ASON, ¡ Automatic Switched Optical network ¡ IETF has extended MPLS to GMPLS( Generalized) ¡ and defined a common control for layer 3 -1 incl. lambda That way traffic engineering, layer optimization, protection switching can be handled over all layers 2 1 OXC 1 GMPLS 3 Dynamic handling of optical resources ¡ By introducing OXC and ROADM in the network remote ¡ 2 4 3 ¡ control of the optical layer can be achieved and if controlled by GMPLS extended to layer 2 and 3 Optical transparency means dynamic handling in the optical domain. By avoiding unnecessary O-E-O conversions substantial capex can be saved. 50 -80% of Internet node traffic is typically pass-through Photonics systems roadmap www. isa. se 16

Fiber Access ¡ FTTx where x can be H (home), B (basement), C (curb) or N (neighborhood) ¡ Singel or multimode fiber, trend SM, one or two fibers ¡ AON ( Pt. P) or PON (Pt. MP), Europe AON, US and Asia PON lower cost, AON is more flexible ¡ Urban Areas FTTx systems are today quite competitive in urban areas ¡ PON Fixed radio access alternative in rural areas FWA, TDD and Wimax Planning Installation Active eqt Passive eqt P 2 P 1 -f APON VDSL CAT 5 E ADSL EPON similar as P 2 P Photonics systems roadmap www. isa. se 17

Optical Edge Devices, OED Multi-Service Provisioning Platform, MSPP Server side Client side E 1 / E 3 FE/ Gb. E Escon, Ficon STM 1 -4 TDM MUX Switch L 2/ L 3 Circuit Emul. CWDM FE/ Gb. E STM 1 -64 ETD NG-SDH Big family of products from simple media converters to boxes having integrated switching, routing and CWDM functionality ETD, Ethernet Transport Devices ¡ ¡ Ethernet transport still an issue. No carrier class standard exist today, proprietary OAM (Operation & Maintenance) ETD mainly used in metro aggregation and at enterprise premises NG- SDH, Next generation SDH ¡ ¡ ¡ Use of GFP to map Ethernet into SDH frames Using all transport features of SDH, can interoperate with legacy SDH NG-SDH is used in Metro access and core networks, rings and mesh Photonics systems roadmap www. isa. se 18

WDM system and (R)-OADM WDM ¡ ¡ First generation WDM was used for fiber ”multiplication” of SDH State of art long haul DWDM today is 80+80 (C+L band) channels, each 10 Gb/s i. e 1. 6 Tb/s. Repeater distance 400 km, regeneration 6000 km ! OTN standardization and lower transponder cost has opened up Metro applications where WDM also can be used to separate services Two versions, DWDM (Dense) 80 channels and CWDM (Coarse) 8 ch OADM ¡ ¡ OADM: s are used to create multinode networks, often ring based ROADM (reconfigurable) will be introduced in the future to achieve dynamic network, faster provisioning and automated restoration Photonics systems roadmap www. isa. se 19

OXC, Optical Cross Connect Three different types of OXC exist, OOO, OEO and combined OOO TRx Wavelength switching TRx Aggr ¡ OOO is an optical or electrical based switch fabrics performing wavelength switching ¡ OEO is an electrical switch providing grooming and switching (STM 155) including ethernet mapping Aggr ¡ OXC as network component is handling the bandwidth management, network and platform consolidation SDH ¡ By common control plane remotely controlled a dynamic network is established controlled by OXC. OOO will extend that to wavelength level SDH ¡ For smaller applications ROADM, reconfigurable optical add/drop multiplexer, is used instead of OXC ¡ Eth SDH 155 M switching Both OOO optical switch fabrics and ROADM are based on immature and expensive technologies but that will improve over the coming years OEO ROADM Photonics systems roadmap www. isa. se 20

Optical Networking Market Photonics systems roadmap www. isa. se 21

Market Outlook and Trends Revenue Photonics System ¡ ¡ ¡ ¡ Market finally has turned around, 15 % increase in 2004 but still conservative forecast for next 5 years. Compare with 30 BUSD in bubble year 2001! 10 BUSD Next generation products constitute 60% of the market and Metro access network is the fastest growing segment +10% per year 2004 2010 OED: s 40 % of the market, the majority being NG-SDH OXC market share dropped to 5 % but will recover and take over DXC: s 10% ROADM: s will overtake the OADM market share of 20% the coming 5 years Metro WDM market share around 10%, growing with 15% per year Long haul DWDM market is about 10 % and quite flat Access systems (data) ¡ Total market 2004 was 8 BUSD split between DSL, Cable modem, FTTx and access routers and switches Photonics systems roadmap www. isa. se 22

Components and Technology Modules ¡ ¡ Optical Amplifiers - Mechanically standardized Tx/Rx modules up to 10 Gb/s direct pluggable - Tunable lasers not yet a mature technology - OEIC in In. Ga. As. P far away commercially but integration is necessary for 100 Gb/s - VCEL lasers interesting due to better yield but still a challenge for 1. 3 and 1. 55 ¡ ¡ Passive components ¡ ¡ EDFA dominating type. Big inventories have reduced development interest but now more focus on metro and access market Raman amplifier has issues with safety etc EDWA potentially a very low cost device but requires substantial development SOA, suffering from performance issues Technology - Fibergitter is established today as filter technology for WDM. - Tunable filters for ROADM: s costly today, will improve the coming years - Optical cross connect technologies as MEMS and X-switches have reliability issues - Dispersion compensation is based on fiber today but growing interest for gitter due to smaller dimension ¡ ¡ The overall issues with optical technology are size, low integration, lack of memory and processing capability Merits are speed, attenuation and sensitivity Photonic Crystals new area which can offer high Q filters, negative refraction index ! Metallic Optics future potential for integrated optics, even memory chips but long way to go Photonics systems roadmap www. isa. se 23

The Swedish position, Market ¡ The ”IT for all” program 1999 initiated a massive fiber built out and creation of more than 200 public owned city networks ¡ From a position as one of the leaders in broadband Sweden has lost some momentum but still high percentage of fiber access ¡ ¡ ¡ Strong competition today between Telia (ADSL), B 2, Cable TV operators and the city networks, totally 20 national and 59 regional operators Lowest Internet access prices in Europe and a clear trend to offer triple play but market needs consolidation Most city networks follow the open network concept, growing interest in other countries Broadband Subscriptions in Sweden, Q 3 2004 Others; 9% Tele 2; 3% Glocalnet; 3% Telia. Sonera; 36% Spray (incl Tiscali); 4% UPC; 7% com hem; 12% Photonics systems roadmap B 2/Bostream; 26% www. isa. se 24

FTTH in Europe Concentrated in 4 countries (Sweden, Italy, Denmark and the Netherlands) Source: IDATE Photonics systems roadmap www. isa. se 25

The Swedish position, industry Earlier strong position in photonics due to successful collaboration between Ericsson, Telia , universities and institutes. Today much more fragmented picture System vendors ¡ Ericsson, Own development in broadband access but sourcing optical transport products. Ericsson strategy for convergence and BB growth? ¡ Packet Front, Broadband access systems with provisioning for multiservice as key feature. Very fast growing, founders from B 2 and Cisco ¡ Net insight. NG-SDH product based on DTM offering TDM multicasting. Strong in video transport. Founders from Ericsson and KTH Wavium, OXC lambda switch based on electrical core with a powerful management system. Recently restructured, founders from Telia Zarlink, strong in VCEL Northligh active in transmitters and EDFA and Proximion focusing on fiber gitter for dispersion compensation the only vendors with some size. Examples on small start ups Pho. Xtal( diplexer and bistable ROADM switch), Inv. Opto (low power, small size optical links), Cernolux(TOADM), Accilon (polari- and spectro meter) and Syntune (tunable lasers). ¡ Transmode (Lumentis), D/CWDM systems, No. 2 worldwide CWDM. Metro WDM applications with built in OXC. Founders from Ericsson ¡ ¡ Modules, components They need marketing support to reach the global market as no ” Ericsson” exists Photonics systems roadmap www. isa. se 26

The Swedish position, Research ¡ ¡ The Swedish research in Photonics is mainly concentrated to three organizations, Acreo, KTH and Chalmers High international class in respective special areas but ongoing struggle with financing Acreo, research institute located in Kista, photonics and optical networking, and in Hudiksvall, fiber research. Most of the research in Photonics is done together with KTH in their JV KPRC (Kista Photonics Research Center). Acreo is operating the national test bed located in Hudiksvall (metro access) and in Stockholm (metro core) and a high speed link in between. The test bed with real test pilots is a meeting place for the different actors as vendors, operators, service provider. It is part of three BB EU projects. KTH and KPRC is strong in high speed modulators, laser technology, gratings, packaging and photonic crystals and quantum optics Chalmers has its main focus in high speed modulation, polarization mode dispersion and lasers and work closely with its microtechnology lab. Photonics systems roadmap www. isa. se 27

Summary ¡ Due to Internet the traffic volume is growing with almost doubling every year and at the same time price per bit is falling dramatically. ¡ To meet this challenge operators are introducing ”next generation IP based network”, handling best effort, Qo. S data and legacy services. ¡ It is supported by next generation photonics systems, optimized for data traffic and offering dynamic, optical transparency and switching ¡ The number of broadband subscribers are growing with impressive 50% per year. Triple play i. e. convergence between tele, data and media will increase access speed and support fiber access built ¡ Sweden is a mature IT nation willing to explore the broadband society. We have still competence in photonics, both system and research and maybe the rapid growth in the broadband sector and the convergence between fixed and mobile can improve the situation and create a new interest for broadband photonics. The market has just started! Photonics systems roadmap www. isa. se 28