Breakout session day 2 ftth business case birgir rafn thrainsson
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FTTH Conference Milan 2011 Day 2

FTTH Conference Milan 2011 Day 2

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Breakout session day 2 ftth business case birgir rafn thrainsson Presentation Transcript

  • 1. Real story, real numbers – A case studyFTTH ConferenceMilano, February 10th 2011Birgir Rafn Thrainsson, CEOReykjavik Fiber Network
  • 2. ObjectiveTell you about the Share information, For comparison toReykjavik FTTH project, progress numbers, your own project andthe Business model, financial figures and your own numbersthe Deployment and technical metrics or estimatesthe Active Network
  • 3. AgendaBackground Business model FTTH networkCost figures Lessons learned
  • 4. About Reykjavík Fiber NetworkBuilds and operates an A subsidiary of Reykjavik Fiber backbone networkOptical Fiber Network Energy, an energy and in the Reykjavik areaFounded 2007 utility company owned by since 1999 the City of ReykjavikPower line services 2002 FTTH project started 2005 ISO 9001 certifiedto 2005 expected to complete in 2014
  • 5. About Reykjavík Fiber Network
  • 6. Consumer Broadband MarketReykjavik municipality area
  • 7. Why FTTH? Utilize existingVision network Utility approachImprove quality of Fiber backbone Synergies with otherlife and increase network serving utilities, electricity,competition. carriers and hot water, cold water businesses. and seweage.
  • 8. Why FTTH? Reliable serviceTelecom competition delivery BandwidthExisting copper infra- Higher customer Will be used forstructure getting satisfaction, fewer profitable services.older, based on entry- trouble reports FTTH is a gate for newbarrier business according to Vodafone service development.model. Iceland.
  • 9. Fiber Network overview
  • 10. Open Access – Active SharingOpen Access Active SharingBased on the Reykjavik Fiberfollowing criteria: Network a wholesale• Limited role in the operator, Service value chain Providers provide• Shared investment retail services.
  • 11. Rollout Strategy Contracts with Municipalities Contracts with Service Providers Deployment Prioritization of Areas Use existing ducts Network Installation New building areas Add subscribers At renewal time of utility ducts Lowest cost pr. home Network Operations Areas where terrestrial TV or TV over ADSL is difficult to reach Non-committing interest surveys
  • 12. Average Revenue Per User (ARPU)
  • 13. Consumer prices
  • 14. Current Status Connected homes: 38.000 Rollout progress: 58% Subscribers: 11.000 Connect rate: 99% Take rate: 29%
  • 15. DeploymentCurrent Network Size449 Passive POPs74 Active POPs2330 Manholes600 Splice closures2100 km of Ducts2700 km of Fiber cables
  • 16. DeploymentActive POP stationsDesigned for connecting up to400, 720 or 1440 homesActual connections 100 to 2000homes pr. POP, 513 on average
  • 17. DeploymentDuctsDucts buried in 40-50 cm depth ,single ducts next to houses on 30 cmMulti ducts diameter 50 mm, with8 or 18 micro ducts 7 and 12 mmSingle ducts diameter 10 and 14 mm
  • 18. DeploymentFiber cablesSingle mode fiberSingle fiber connected pr. homeAverage fiber length between homeand POP is 518 metersAbout 25% of fibers not connected
  • 19. Deployment
  • 20. Deployment
  • 21. Deployment
  • 22. Indoor Installation
  • 23. Indoor Installation
  • 24. Indoor Installation
  • 25. Indoor Installation
  • 26. Active Network
  • 27. Active NetworkNetwork design Max 6 Max 36 Point-to-point Active Ethernet Active Ethernet Active Ethernet Single VLAN Network Layer 2 Layer 3/MPLS Layer 3/MPLS per service Redundancy Redundancy
  • 28. Active NetworkCurrent network size 10 (2x5) 4 (2x2) 140 9 on avg. 3 on avg. About 38.000 IP numbers of which 12.000 for STBs
  • 29. Active NetworkCurrent network connections 2 Gbit/s (2x1) 100 Mbit/s 4 Gbit/s (2x2) 40 Gbit/s (2x20) Experiments with 1Gbit/s started
  • 30. Active NetworkNetwork equipment Telsey CPEs CPL3, CPL5, CPL7 Cisco 45xx Cisco 76xx Cisco 76xx Cisco 3550 Cisco ME3400
  • 31. Bandwidth usageBandwidth per subscriber
  • 32. Who’s paying?Investment paid by Reykjavik Fiber No payments for rights-of-way,Network: neither to municipalities nor• Passive infrastructure in the ground private land or house owners and POP stations• Active Network equipment in POP stations• Indoor Installation No initial payments from homes or• Residential Gateway (CPE) service providers
  • 33. Who’s paying?Investment paid by Reykjavik Fiber No payments for rights-of-way,Network: neither to municipalities nor• Passive infrastructure in the ground private land or house owners and POP stations• Active Network equipment in POP stations• Indoor Installation No initial payments from homes or• Residential Gateway (CPE) service providers
  • 34. CAPEXCAPEX connecting a home adding a subscriber
  • 35. CAPEXCAPEX connecting a home adding a subscriber
  • 36. Numbers based on actual figures for connecting 38.000 homes and adding 11.000CAPEX subscribers together with estimates for remaining homes and subscribers. CAPEX connecting a homeCAPEX connecting a home CAPEX adding a subscriber and adding a subscriber
  • 37. CAPEX
  • 38. °Lessons learnedSelect your rollout Involve the community Treat muncipalities asstrategy carefully from the start partnersCreate a strong , long Be prepared to change Take-up of services is notterm, relationship with things you believed to be instantaneous andservice providers fundamental in the depends on the rollout beginning progressBe careful when using Build long lasting infra- Prepare for carrier gradeaverage numbers structure for every day operations use
  • 39. Thank you – Q&A