Real broadband, real growth

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Real broadband, real growth
Dirk van der Woude Ontwikkelingsbedrijf Gemeente
Amsterdam
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Effect of infrastructure

• like that of the British steam railways
• 1838 Netherlands choice between speed barges or
  steam

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Fiber?
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And WiFi was important too

• 1792
• Lille gt Paris
• 15 stations
• 36 characters in 32 minutes
• all records broken, huge success
• And up to 1848 cause for the French to forgo
  investing into a copper telegraphe network

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http//www.generation-nt.com/actualites/25551/cart
e-fibre-optique-paris-couverture/
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Each industrial revolution is underpinned by new
infrastructure
GLOBAL DIGITAL TELE-COMMUNICATIONS AND ICT
SUPPORT NETWORKS
1971
THE AGE OF INFORMATIONTECHNOLOGY
1908
THE AGE OF OIL, THE AUTOMOBILE, PETROCHEMICALS AND
MASS PRODUCTION
ELECTRICITY, TELEPHONE, HIGHWAYS AND AIRWAYS
1875
TRANSCONTINENTAL COMMUNICATIONS, STEAMSHIPS,
RAILWAYS AND TELEGRAPH
THE AGE OF STEEL ELECTRICITY AND HEAVY ENGINEERING
1829
RAILWAYS, PENNY POST AND TELEGRAPH
THE AGE OF RAILWAYS, COAL AND THE STEAM ENGINE
THE INDUSTRIAL REVOLUTION IN ENGLAND
1771
CANALS, TURNPIKE ROADS AND MAIL COACHES
Source Carlota Pérez
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Old shoes are nice (some are quite old)
Optical chip throughput 1,6 Tbs (april
2006) Fiber speed 8 Gb/s over 30,000 km (march
2006) First trans atlantic fiber (1988), First
usable fiber optic cable (1970)
First TV Transmission through coax Berlin Games
(1934) First pilot in USA, ATT (1936)
Coaxial cable patented in GermanyErnst Werner
von Siemens (1884)
First demonstration of electric telephone Antonio
Santi Giuseppe Meucci (Havana 1849, NewYork 1854)
Semaphore (portable version Napoleon Bonaparte,
1802)
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Imagine a world without having the age of steam

• So let us be thankful for copper and coax!
• however

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1999 - 2001 awareness Amsterdam

• Can we be sure copper cox networks are future
  proof
• Practical speed
• Parallel use (video)
• Not able to sustain the citys economic social
  needs
• Like continuing strong old and new media ICT
  sector
• Like citizens overwhelming web use (2006 gt 85)
• Living at a dirt road? Dont buy a Ferrari
• Services follow infrastructure
• Creative sector citizens will find out use
• Local government facilitates
• Time for new network?

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Amsterdam employment(total 412.000 working
persons)
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Amsterdam internet exchange growth
Worldwide peak speed records July 05 gt 50
Gb/s October 05 gt 100 Gb/s May 06 gt 154
Gb/s June07 gt 282 Gb/s

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VDSL2 laboratory conditions
http//www.lightreading.com/document.asp?doc_id93
103page_number4

• And of course there is this contention thing

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Shared capacity

• So
• Better live next
• to the central office
• And of course still there is this contention
  thing
• Parallel speed? Ams-IX per subUPC 40
  kbitsEssent 60 kbitsXS4All 67 kbits

xDSL 8 - 14 Mb/s down, 0.7 0.8 Mb/s up
Leaves for web use ? Mb
Two phones 2 x 0,2 Mb
IP TV SD low 3 to 4 Mb SD normal 4 to 6 Mb HD
low 8 to 12 Mb HD 18 to 20 Mb
http//www.ams-ix.net/connected/?expanded1
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First user test of Amsterdam FttH

• Advertised speed 100 Mb up, 100 Mb down
• In practice (first days) 88 Mb down

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Japan 270,000 new FttH per month
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Oct 1, 2008
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FttH, elsewhere in Europe just a pick (1)

• France, the battle for around Paris
• Iliad 1 million FttH at 1 billion Euro
  investment (City of Paris supporting)
• Neuf Cegetel in 2009 we want 250,000 FttH (50
  Mbits) at euro 29,90
• France Telecom, 2007 FttH (100/10 Mbits at euro
  44,90) in Paris, Poitiers, Marseille, Lille,
  Toulouse Lyon. Target 200,000 subs end 2008
• Noos Numericable, march 2007 Massive investment
  towards FttH
• over 100 broadband projects France with communal
  participation
• Nov. 2006, French government 4 million FttH in
  2012
• Germany competitive telecos announcing FttH
• f.e. NetCologne all of Cologne, to be followed
  by Bonn, Aachen?(NetCologne 100 GEW Köln AG
  100 City of Cologne)
• Other projects in Schwerte, Norderstedt, Hamburg,
  Gelsenkirchen, Dessau, Magdeburg

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FttH, elsewhere in Europe just a pick (2)

• Vienna, Zürich (muni energy corps)
• FttH in whole city
• Norway Hafslund energi (53 owned by City of
  Oslo)
• FttH to half of Norwegian population
• Sweden
• 200 of 289 communities own a fiber network
• Denmark energy corps doing FttH
• 2008 2009 to 35 of homes ( 50 of
  population)
• UK
• Oxfordshire project, part FttH (?), part
  Fiber/VDSL
• Rest of UK, according to BT DSG 12/1 Mb is
  enough for all ever. No fiber please, we re
  British
• However, Ofcom report march 2007 Last mile will
  have to be fiber

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Hauts-de-Seine 700,000 connections

• Western part of Greater Paris
• pop. 1.5 million, 100.000 SMEs, 880.000 jobs,
  85 in services
• Per capita highest income of France
• 2005, adoption of proposal by the Chairman of the
  Conseil General
• FttH to all population and companies
• With a maximum subsidy of euro 70 million
• Said Sarkozy Copper is not gonna cut it, we
  need fiber

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(No Transcript)
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FttH in the EU, some examples
Köln NetCologne 200,000 FttH Vienna 1 million FttH Paris, Iliad 1 million FttH Hauts-de-Seine FttH Milan FttB Stockholm Dark fiber Amsterdam 40,000 FttH

Municipal financial participation n.a.
Municipal financial participation 250 million n.a. 75 to 100 million worth of support Up to 70 million subsidy 100 million 100 million 6 million of 30 million (passive layer)
Open network? No Aim yes Yes? n.a. No Yes Yes
Problem for EU?
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Three layers, three types of investors40,000
homes passed now more than 450,000 later on
consumer/ SME
Service providers 100 market
Wholesale transmission provider 100 market
Rent
Rent
Passive access network provider 20 municipal
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Three kinds of financial dynamics40,000 homes
passed now more than 450,000 later on
Services High OpEx, Low CapEx Quickly profitable
Transmission Attractive OpEx, acceptable CapEx
profitable in few years
Passive network Real estate like
investment (Highly?) Profitable on long term
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Translated into investments (millions of euro)
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Fiber-from-the-Home 40,000 meter boxes, 10 of
Amsterdam
Boroughs of Zeeburg (100), Oost (part)
Osdorp (part)
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Architecture (1)

• three-layer model
• Passive fibre infrastructure Point-to-Point
• Unbundled local loop of fiber maximum
  competition at upstream level in value chain
• Largest capacity for future growth
• Active layer Active Ethernet
• Applications services layer, Service providers
  are being offered transparent access
• with discrete virtual LANs (VLANs) for each
  service on a per user basis
• allowing multiple services to be delivered and
  invoiced to each home in parallel (i.e. multiple
  ISPs, Citywide Intranet, closed circuit IP-based
  surveillance, IP-TV, care and medical services
  etc.)

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Architecture (2)

• Open network
• Concession of 8 years for operator/investor,
  after that more operators possible
• Operator is non discriminatory wholesale seller
  of capacity
• Why not x-PON
• Avert risk of having to (expensive) re-digging
• Labor costs dominate, will rise with inflation
• Short distances, so savings on cost of material
  (fiber) are small
• No lock-in of equipment supplier which stifles
  innovation
• Impossible to have different technology/supplier
  per subscriber line

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www.glasvezelamsterdam.nl www.citynet.nl

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