Tiziana Talevi FASTWEB


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FTTx Summit Europe 2012

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Tiziana Talevi FASTWEB

  1. 1. NGA Devel opment Technol ogi cal evol ut i on of FTTC & pol i cy i m i cat i ons plC2 – INTERNAL USE
  2. 2. Fastweb’s uni que posi t i oni ng i n t he NGA m ket ar  The widest NGN footprint in Italy: 2 Mln households passed and around 280k active customers on proprietary FTTH network in 7 major urban areas in Italy  Extensive LLU coverage with presence in 1,200 LLU sites  First operator to offer IPTV services in Europe since 2001, on fiber and LLU lines. Fleming Area – NETCO trial  First operator in Italy to offer 20Mbit Access  Since end 2008, rolling out 100Mbit FTTH for Residential and Business Customers Fastweb is the market leader for NGN deployment and services in Italy and actively taking part to all co-investment discussions ongoing in Italy C2 – INTERNAL USE
  3. 3. St at us of co- i nvest ment pr oj ect s i n It al y Fastweb, Wind and Vodafone launched a co-investment initiative in May 2010 based on a FIBER-CO model building an FTTH point to point network. Pilot project in Rome 10k households. Government launched Industry Initiative for co-investment with possibility of public financing. TI’s participation was seen as essential to ensure profitability of investment. Disagreement on network architecture, pricing schemes, NET-CO governance, compensation for stranded copper assets, buy back from TI led to a delay and failure of discussions. Increase of wholesale prices by the NRA deprived OLOs of resources to expand co-investment initiative (estimated 700 Mln euro of increased costs for alternative operators). C2 – INTERNAL USE
  4. 4. What ar e t he i ncent i ves f or f i ber depl oym ? ent Value generation in Fixed TLC market: EBITDA – Investments (%, Bln€) Total Mkt(€Bln) 3,9 4,2 4,3 4,6 Telecom Italia 105% 105% 96% 96% 100% 100% 100% 100% 4% 0% 0% Alternative Operators -5% 2007 2008 2009 2010 TI investments 2.7 2.4 2.1 1.9 (Bln€) C2 – INTERNAL USE
  5. 5. Copper access pr i ces vs f i ber depl oyment pl ans LLU price trend 2012 9.28 Homes passed 2011 9.02 April 2009 3 Mln in 2011 2010 8.7 Dec. 2009 2.5 Mln in 2012 Apr 2010 1.3 Mln in 2012 2009 8.49 Feb. 2012 FTTC 2008 7.64 C2 – INTERNAL USE
  6. 6. FTTC: VDSL2 & Vect or i ng VDSL2 VECTORING VDSL2 is based on deployment of fibre at street By cancelling the noise on the copper loops, Vectoring cabinets and can provide up to 50-70 Mbs. enhances the performances of VDSL2, allowing it to Altnets can be VDSL2 operators by co-locating their reach up to 100 Mbs. equipment in the street cabinets and renting sub- Same architecture of VDSL2 (FTTC + copper to loop unbundling (i.e. the copper from the cabinet to customers’ premises). the users’ premises). In order to maximize the use of available financial resources, FTTC may be an essential step in the roll out of NGNC2 – INTERNAL USE
  7. 7. Fast w FTTC t r i al i n Mi l an eb When: 16th to 31st January 2012 Goal: testing the potential and limitations of vectoring technology; comparing performances of vectoring and VDSL2 Trial characteristics: 1. A realistic simulation of a standard street cabinet: connected with fiber to PoP and to 40 copper sub-loops. 2. Different copper lengths to test performances under various conditions 3. Trials simulating multiple Vectoring-DSLAM operators from the same cabinet 4. Some improved conditions compared to real field:  New copper loops and low external noise  PoP to Cabinet distance fixed at 800 mt 5. Some worsened conditions compared to real field with loops used for most tests (710 mt) longer than typical length of sub-loops in Italy. C2 – INTERNAL USE PG. 7
  8. 8. VDSL2 and Vect or i ng per f or m ances: on- f i el d r esul t s Measured Rate vs Reach With loops under 500 mts:  Vectoring allows to reach 90 Mbs  VDSL2, even without vectoring, reaches 70 Mbs. VDSL2 – which has none of the competitive limitation of vectoring - represents a change of paradigm compared from ADSL from local office improving current broadband speeds of 250%. C2 – INTERNAL USE PG. 8
  9. 9. Cl ear pat h t ow ds coexi st ence of m t i pl e ar ul pr ovi der sA. Vectoring across multiple DSLAMs is in the near-term roadmap of the main DSL technology suppliers. Pre-commercial solutions already available for demo.B. Such solution allows to maintain vectoring performances even with multiple ISPs operating at the same cabinet provided that: i. The second operator willing to deploy Vectoring from a cabinet adopts the same technology chosen by the first mover and connects to the first DSLAM with a cable to achieve vectoring coordination ii. A shared vector processor manages the noise Cross-DSLAM vectoring coordination for cancellation for all in a neutral way normal expansion needs (single provider)C. Such an evolution is pushed by incumbents interested in vectoring to overcome current limitations of the technology: as vectoring customer base grows, vectoring coordination across multiple DSLAM/chassis/cabinets will be needed regardless of their physical locationD. The same solution enables coexistence of multiple providers using same vectoring technology while maintaining enhanced vectoring performances Cross-DSLAM vectoring coordination for multiple SP co-existence C2 – INTERNAL USE PG. 9
  10. 10. Pot ent i al of FTTC i n It al y • Based on TI database information, average copper length in 8 cities is around 409 meters (70% of loops are below 400 meters) • FTTC, either through VDSL2 or Vectoring, represents a promising technology to reach Digital Agenda targets Distribution of length in secondary copper network 8 cities considered by FW for the initial Vectored Down Speed deployment: 95M VDSL2 Down Speed • Bergamo 100M 70M • Brescia 70M • Florence • Rome • Naples 80M • Bari 58M • Catania • Palermo 200 400 600 800 1.000 Meters Fastweb has already requested Sub-loop Unbundling for over 200 cabinet areas and is ready to increase this footprint under the right conditions C2 – INTERNAL USE PG. 10
  11. 11. Fast w t r i al : m n f i ndi ngs eb ai FTTC has a relevant potential to provide ultra-broadband services in Italy and can represent an intermediate step to FTTH. Performances of non-vectored VDSL2 are already remarkable with short loops and could be considered as an alternative until vectoring becomes mature and allows multi-operator environment. Vectoring evolutions available by end of 2012/2013 will enable different ISPs to provide vectoring from the same cabinet.C2 – INTERNAL USE PG. 11
  12. 12. What does t hi s i m y i n t er m of pol i cy? pl s Sub Loop Unbundling (SLU) will play an essential role in the deployment of FTTC and increase infrastructure-based competition towards full FTTH solutions Withdrawing or limiting SLU is not necessary and not desirable: • it would give incumbents the capability to deploy FTTC if/when/where they want, therefore taking away any competitive pressure • vendors not encouraged to develop pro-competitive evolutions of vectoring; Deploying of vectoring under existing limitations can be enabled by establishing: • Obligation for the first mover to take care of the cross cancellation for other ISPs (allow other ISPs to connect their DSLAM to the first mover’s CPU • Obligations for second/third movers at each cabinet to adopt the same technology as the first mover. Facilitating deployment of FTTC by Altnets would put pressure on incumbents triggering a competitive race to be the first mover.C2 – INTERNAL USE PG. 12
  13. 13. Bar r i er s f or Al t net s i n depl oyi ng FTTCCurrently, alternative operators have relevant cost and operationaldisadvantages in deploying FTTC: Disproportionate price of sub-loop SLU is currently priced at a very high and disproportionate level compared to LLU, making it hardly sustainable for Altnets. This is one of the main reasons for the marginal deployment of VDSL by Altnets. Delays in availability of cabinets to install active equipment: Co-location at street cabinet may be complex, providing opportunity for incumbent to delay process and put in place discriminatory behavior; provision of sub-loops currently subject to many technical limitations. Additional cost/operational complexity Limited control of provisioning and assurance activities Whereas incumbent operates directly with its own workforce (or external contractors) on the cabinets for activation and maintenance, Altnets need to rely on the incumbent to do these activities for them. This has been historically a major source of discrimination and would be even more relevant in vectoring/VDSL. C2 – INTERNAL USE
  14. 14. Push for a “competitive” r ol l - out of FTTC Introduce measures in the costing and non discrimination Recommendations making it easier for Altnets to roll-out FTTC: Lower sub-loop prices: decrease SLU more than proportionally compared to LLU Stricter non discrimination measures for VDSL: give Altnets the possibility to use external contractors used for delivery/maintenance of sub-loops. Vectoring: do not remove subloop ULL but impose an obligation for ISPs willing to deploy vectoring at a specific cabinet to coordinate equipment with other operators. Accelerate pro-competitive development of vectoring technology. Need to avoid that technology drives regulation. Should be the other way around. C2 – INTERNAL USE