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See the future of

BIG Broadband
and Gigabit-to-the-Home




                                                          by Wayne Caswell
                                                       © CAZITech Consulting, 2006
      Photo courtesy of Sandia National Laboratories
TOPICS:
• Alternative Futures
•   The Case for BIG Broadband
•   Addressing Social Issues
•   FTTH Technical Tutorial
•   Fiber as Public Infrastructure
•   Residential Gateways



                                        by Wayne Caswell
                                     © CAZITech Consulting, 2006
Alternative Futures



            MKT-DRIVEN             ENABLING
            REQUIREMENTS           INFRASTRUCTURE




                                                       “BIG” BROADBAND
            Invest in network      Invest in excess
BROADBAND




            capacity to satisfy    capacity ahead of
            bandwidth needs of     market demand to                                 PUBLIC SECTOR
            popular & profitable   encourage
            applications.          innovation and                        BENEFIT-DRIVEN
            Discourage use of      enable new apps                       Political and Citizen-Focused
            BW-intensive apps      that would not                        Free or Low Cost Encourages High Adoption
            that increase costs    evolve otherwise.                     Economy Drives More Capacity Investment
            or slow performance                                           (attract business, close divide, incr.tax base)
            of others.

                                                                         PROFIT-DRIVEN
                                                                         Business case needs ROI & Quick Payback
                                                                         High Adoption Rate * High ARPU (monopoly)
                                                                         From Fixed Price to Usage-based
                                                                          (by Time, Volume, Transaction)

                                                                                   PRIVATE INDUSTRY
Alternative Futures
                                                                                      Continued
                                                  PUBLIC
        Legislators can’t ignore early successes           BB FTTH becomes strategic infrastructure for
         from Muni Wireless and Regional Fiber               public safety, public health, economic
         initiatives and remove limiting laws                development, jobs, education, and innovation
        Rural & underserved communities adopt              Open access provides level playing field for
         WiMAX & Wi-Fi Mesh at increasing rate to            competition through Fiber & Wireless
         address digital divide, economic                   Beyond interactive entertainment, G2Home
         development, and other social issues                enables social benefits unheard of before
        Public-Private partnerships increase               US regains world tech leadership due to BB
        BW varies widely by municipality, so many           adoption, pricing and capabilities
         BIG BB opportunities still go unfulfilled          G2Home initiative provides nearly unlimited
                                                             BW, but still need tiered pricing to prevent abuse
BB                                                                                                   BIG BB
        Prices fall slightly as DSL & Cable operators      FTTH only in new (green field) and wealthy
         face new competition from wireless & BPL            (high-margin) neighborhoods, ignoring others
        Usage varies with all-you-can-eat pricing          Popular fixed-priced pricing of service bundles
         due to a few users of BW-intensive apps             lock out competitors, causing overall prices to
        24-100 Mbps possible but operators throttle         rise with IPTV and users of BW-intensive apps
         usage as costs grow faster than revenue            Digital Divide widens considerably, social
        Broadcast still dominates over IPTV                 unrest increases, US position in world economy
        Digital Divide remains since rural & low-           falters, and Congress is eventually forced to
         income populations remain underserved               react to the lack of competition
        BIG BB opportunities go unfulfilled
                                                 PRIVATE
BIG Broadband
                                       A New Philosophy


  Bandwidth is becoming a strategic imperative as
governments weigh public policy versus profit motives.


         Is BIG Broadband driven by market demand
             for bandwidth-intensive applications?

                          … or …

          Is BIG Broadband an Enabler of innovation
          and apps that would not appear otherwise?
BIG Broadband & Clutter’s Law
                                                         A New Philosophy

Bandwidth is getting cheaper faster than storage.
Storage is getting cheaper faster than computing.
         The exponentials are crossing.

                 “A global economy designed
          to waste transistors, power, and silicon area
              -and conserve bandwidth above all-

          is breaking apart and reorganizing itself
                    to waste bandwidth
     and conserve power, silicon area, and transistors."
                     (George Gilder, Telecosm, 2000)

   www.ces.net/doc/seminars/20040525/ pr/customer_empowered_networking_thru_UCLP.ppt
The Broadband
           BOTTLENECK

Hurts Upstream Benefactors
   Application Service Providers
   Network Equipment Manufacturers
   PC & CE Manufacturers
   Content Providers …
Hurts Downstream Consumers
 Education & Jobs
 Healthcare
 Commuting & Lifestyle …
Hurts Communities & Government
   Failing Local Competitiveness
   Loss of World Tech Leadership
   National Security Risk
   Increasing Social Unrest …
Without BIG Broadband in place, many applications will not emerge, and while
                                                       today’s consumer may place low value on them, that would change if the apps
Network Requirements
                       Bandwidth & Latency vs. Value




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Value vs. Bandwidth & Latency
Network Requirements


                                                       bandwidth. Even high-twitch multi-player games need fast latency but little
                                                       bandwidth. When implemented, medical & sensor alerts have high value.




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                                                                                                                                                                                                                                           NOTE: These relative measures of Application VALUE versus Network Requirements (bandwidth & latency) are subjective.




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                                                                                                                                                                          Bandwidth
Pricing influences
                                                              BEHAVIOR
      From Fixed Price to Tiered Pricing to prevent Abuse of
        Bandwidth by Consumers AND Network Operators
BACKGROUND:
 Application value (phone & TV) justified initial NW investments.
 But always-on convergence and the ability to send these apps over
  competing networks gave consumers new choices and commoditized
  application value (e.g. long distance & local phone, music)
 So, network build-out is now only justified by:
     – Private industry’s Triple Play bundles to lock customers and increase ARPU
     – Municipalities as strategic public infrastructure
   Either way, excess capacity is quickly consumed by early adopters
    according to Clutter’s Law: “Clutter expands to fill the space available.”
     – Since applications and users become wasteful of bandwidth, storage &
       computing capacity, network operators will seek ways to contain abuse by a
       few in order to better serve all, possibly throttling innovation too.
   Usage-based Pricing based on Time, Volume, Transaction, etc.
Pricing influences
                                                               BEHAVIOR
    Chargeback systems recovered costs but discouraged use.


LESSONS FROM CORPORATE IT CHARGEBACK SYSTEMS:

   ―All-you-can-eat‖ policies encouraged individual departments & users to
    waste ―expensive‖ IT resources, so chargeback helped recover costs.
     – But users didn’t understand billing based on computer terms (e.g. MIPS), and
       these schemes failed to reward the apps with the most business value.
   Even business measurements failed (orders taken, invoices printed).
     – In general, chargeback ―discouraged‖ computer use instead of encouraging it.
   As computing ideology moved from Expense to Strategic
    Initiative, chargeback systems, if they survived at all, produced ―virtual
    bills‖ to discourage abuse or found ways to encourage strategic apps at
    the expense of frivolous ones.
Pricing influences
                                                              BEHAVIOR
    Tiered Pricing can be based on Time, Volume or Transaction

TIERED PRICING can also be DYNAMIC

    Bandwidth-intensive apps subsidize bandwidth-conservative apps
    High-value subscribers subsidize low-income subscribers, economic
     development, and public safety.
    Access to city portals and government pages is always free.
    First hour is free to encourage use, then charged on a sliding scale.
      – Low-volume apps are free (email, chat, browsing, sensor alerts)
      – But High-volume apps require a fee (music/video streaming & download)
    Apps with high social value are free (education, telemedicine)
    Apps with business benefit require a fee (teleconference, telework)
    Premium fees for apps consuming the most capacity
     (HDTV, telepresence)
TOPICS:
• Alternative Futures
• The Case for BIG Broadband
• Addressing Social Issues
• FTTH Technical Tutorial
• Fiber as Public Infrastructure
• Residential Gateways



                                      by Wayne Caswell
                                   © CAZITech Consulting, 2006
Big Broadband
                                              The case for 100 Mbps



   Dial-up speeds (28.8–56 Kbps) limit Internet Applications:
    Text & Data (email & chat)
    Web Browsing with simple images
    Digital Music compressed with low quality sampling rates for small files
    Internet Telephone (VoIP)
   Broadband (1-5 Mbps) supports More Applications:
    Digital Music Downloads & Streaming with near-CD quality
    Digital Photography & Sharing of Photos
    Video Conferencing with video in a small window
    Video Streaming with low quality in a window
    Video Surveillance with small images or slow refresh rate
   Big Broadband (100 Mbps) supports Even More Apps:
    High Quality Digital Music
    HDTV: 4-5 simultaneous streams (1080i MPEG-2 needs ~20 Mbps)
    Download Movies in minutes instead of hours
    Video Conferencing that’s almost like being there
Big Broadband
                                             The case for 100 Mbps

                                           But is 100 Mbps enough?
   Possibly multiple HDTV streams per TV
    Simultaneous DVR recordings to watch later
    3-5 HDTV streams * 20 Mbps each = 100 Mbps, but what about Picture-in-Picture?
    Large HDTV displays can support Picture Marquee (4-9 streams per TV)
   Fast Channel Change
    Consumers will want to ―flip‖ through IPTV channels just like broadcast
    channels, but that can mean switching between different servers.
   New HDTV Format: 1080p
    The Resolution of 1080i (great on big screens) + the Speed of 720p (30 fps)
    Needs 30+ Mbps (more than cable, satellite or terrestrial broadcaster has)
    Without Big Broadband, market success is limited by a fierce DVD standards war.
   Video Compression impacts quality, at least to some extent
    MPEG-4 and WM-9 use less bandwidth than MPEG-2 but with tradeoffs.
    Example: Can’t see fast moving golf ball leave the tee
BIG Broadband
                          Gigabit-to-the-Home Enables More

   Rich Peer-to-Peer Collaboration
    Remote musicians perform together with the high bandwidth and short latency of fiber
    networks.
   Third Wave Computing
    Consumers are dusting off their video archive to share online. As more apps move from PCs to
    the Internet, there’s less need for local hard drives except as a buffer. Data moved to trusted
    services is secure and protected, accessable anywhere, and shared with authorized visitors.
   Massively Parallel Computing Grid
    Consumers share the capacity of otherwise-idle PCs across high-speed networks that enable
    massively parallel computing applications such as predicting the effect of global warming.
   Download to Portable Device & Go
    Downloading The Matrix (7.8 GB in MPEG2 DVD format, not HDTV) takes 11.5 hours at 1.5
    Mbps, 10.5 minutes at 100 Mbps, 1 minute at 1 Gbps, and 6 seconds at 10 Mbps. Future
    portable devices with HDTV resolution will need even faster speeds.
   3D TV, Organic LEDs & UHDTV
    3D TV requires even more bandwidth, LEDs will bring HDTV resolution to handheld
    displays, and nanotech materials will make wall-size displays practical. The 1080p HDTV
    resolution won’t be enough, so researchers are already working on Ultra-high Definition TV.
    UHDTV needs bandwidth exceeding 10 Gbps.
BIG Broadband unlikely?
                        Consider these False Predictions


   INVENTION
    – "Everything that can be invented has been invented." – Charles H.
      Duell, commissioner of the US Patent Office, recommending that his office
      should be abolished (1899)
   COMPUTERS
    – "I think there is a world market for about five computers." –
      Thomas J. Watson Jr., chairman of IBM (1943)
    – "640K [of computer memory] ought to be enough for anybody." –
      Bill Gates, founder and CEO of Microsoft (1981)
   INTERNET
    – "Almost all of the many predictions now being made about 1996
      hinge on the Internet's continuing exponential growth. But I
      predict the Internet will soon go spectacularly supernova and in
      1996 catastrophically collapse." – Robert Metcalfe, founder of 3Com
      and inventor of Ethernet (1995)
BIG Broadband unlikely?
                        Consider these False Predictions
                                                              … CONTINUED
   TELEPHONE
    – "Well-informed people know it is impossible to transmit the voice
      over wires and that were it possible to do so, the thing would be of
      no practical value." – Boston Post (1865)
   RADIO
    – "The wireless music box has no imaginable commercial value.
      Who would pay for a message sent to nobody in particular?" –
      David Sarnoff's associates responding to his urgings for investment in radio
      (April 1912)
   TELEVISION
    – "Television won't last because people will soon get tired of staring
      at a plywood box every night." – Darryl Zanuck, Movie Producer, 20th
      Century Fox (1946)
   ELCTRIC POWER
    – "Fooling around with alternating current is just a waste of time.
      Nobody will use it, ever." – Thomas Edison (1889)
BIG Broadband
                    for “Multiple” HDTV streams per TV



DVR / Media Center
 Multiple Recordings
Sports Marquee
 Multiple HD Channels
Surveillance
 Multiple Cameras


… simultaneously
BIG Broadband
                      for “Multiple” HDTV streams per TV
                                                        … CONTINUED


SURVEILLANCE MOVES TOWARD MASS MARKET with:
   Higher Resolution Images
    Better Image Quality reveals more information
   Faster Frame Rate
    Smoother motion
   More Cameras
    CCD image sensors already in Cameras & PDAs
   Cheap & Small CMOS sensors
    On-chip pixel processing
      Great when most of the image is static
      Will enable Facial & Gesture Recognition
BIG Broadband
                          for Fast IPTV Channel Switching


   IPTV is part of a Mass Personalization trend
    On-demand & Interactive features yield deep consumer understanding.
    This enables very Personalized content and Ad insertions

   IPTV Complements & Threatens DTV Broadcast model
    Broadcast is for Large Demographic; IPTV for Special Interests.
    Free spectrum + multicasting = better pictures + more channels.
    With more Free channels, do consumers even need Cable or Satellite?
    IPTV can satisfy Even More Special Interests.

   IPTV needs the same experience
    Consumers channel surf quickly with a remote control.
    The TV ―quickly‖ tunes to specific channel Frequencies.
    But IPTV may need to connect to Distributed Video Servers.

   Picture-in-Picture amplifies the effect
    Picture marquee makes it even worse.
BIG Broadband
              for Fast IPTV Channel Switching
                                                FCC reclaims
  IPTV growing but still Low Penetration          analog TV
                                                   spectrum




NOT yet Pervasive




                                Growth needs
                                Big Broadband


                                                       2009
BIG Broadband
                                           for new HDTV format


   1080p is new HDTV format that blends the best of:
    1080i (Highest resolution for large 40+‖ displays) … and …
    720p (60 fps progressive scan for rapid action versus 30 fps)
   BUT, 1080p broadcasts need 30+ Mbps
    Cable, satellite & terrestrial broadcasters can’t handle that today.
   AND, DVDs can’t store an entire movie
    Studios want new DVD format w/ better DRM before releasing content.
    Competing DVD formats are in a Standards War.
      Blue-ray (Sony & most CE companies) versus
      HD-DVD (Intel, Microsoft, NEC & Toshiba)
      Sony PS3 will include Blue-ray DVD player and support 1080p.
BIG Broadband
                 for Rich Peer-to-Peer Collaboration


Multi-player
Gaming

Distributed, I
mmersive
Performance

Signing & Lip
Reading for
the Deaf

TelePresence
breaks
Distance
Barriers
                 Collaborative Music Performance over Internet 2
BIG Broadband
                    for Rich Peer-to-Peer Collaboration
                                                     … CONTINUED

LIVE STREAMING:
 Latency is a Crucial Limiting Factor
    – Only ~ 20-40 ms is unnoticeable
      (for universal interactive applications)
    – In gaming, delays mean you get shot
   Tradeoff: Latency versus bandwidth
    – Compression reduces bandwidth
    – But: high compression increases latency
      (e.g., interframe MPEG compression)
   Approach:
    – Experiment within this design space
      e.g. resolution, frame rate, SW/HW codecs
      vs. uncompressed audio & video
BIG Broadband
          for Rich Peer-to-Peer Collaboration


Live HD Video Streaming with No Latency Delay




                                   1280x720 pixels
BIG Broadband
                                                    for Third Wave Computing
                                 INTERNET APPLICATIONS
                 First Wave – Text & Data services such as e-mail & FTP
               Second Wave – Images, sound & video improve Ease of Use

Apps tightly    APPLICATION                                                      APPLICATION         Network is
bound to OS                                                                                         subservient
                                              NETWORK                                               to computer
                     OS                                                               OS


                    DATA                                                             DATA


                           Third Wave – The Network is the Computer

Apps & Data     User Interface                                                   User Interface      Computer is
exist on the                                                                                         subservient
  Network                                     NETWORK                                                to Network
                     OS                                                               OS




                             APPLICATION   APPLICATION   APPLICATION   APPLICATION         Web Services, Open Source,
                                                                                            Peer-to-Peer, Distributed,
                                 OS            OS            OS            OS
                                                                                             Agents, Java Spaces,
                                                                                              Creative Commons
                                 DATA         DATA          DATA          DATA
BIG Broadband
                          for Massively Parallel Computing


   The World Community Grid
    –   Many individual PCs join together to create a large system with massive
        computational power that far surpasses that of a handful of
        supercomputers.
    –   Because the work is split into small pieces that can be processed
        simultaneously, research time is reduced from years to months.
    –   More cost-effective technology enables better use of critical funds.
    –   Data access speed is a critical limiting factor, but BIG Broadband offers
        remote access at local hard disk speeds.
   Examples:
    –   Detect extraterrestrial intelligence through analysis of radio telescope data
    –   Human Proteome Folding Project
    –   UNAIDS, the Joint United Nations Program to Fight HIV & AIDS
BIG Broadband
                        For Mobile Devices (Download & Go)

      Passive Broadcast                         Interactive On-Demand                         Mobile

               Downloading The Matrix (7.8 GB in SDTV DVD format)
             Delivery Method                             Days             Hours           Minutes
    Dial-up (56 Kbps)                                       13
    Pony Express                                            11a
    Wireless (512 Kbps)                                    1.5b
    DSL (640 Kbps)                                           1
    Cable (1.5 Mbps)                                                        11.5
    T1 (1.54 Mbps)                                                           11
    FedEx                                                                    10c
    Ethernet (10 Mbps)                                                        2
    Fast Ethernet (100 Mbps)                                                                 10.5
    Gigabit Ethernet (1000 Mbps)                                                              1
a
    New York to California: extrapolated from record delivery time of 7 days 17 hours,   Download & Go
    traveling approximately 2,000 miles (from St. Joseph, Missouri to Sacramento, CA)
b
    Maximum 150 users per node
c
    Express delivery from New York, NY 10005 to Beverly Hills, CA 90210                         CONSULTING
BIG Broadband
                     for Ultra-High Definition Television


   Japan Broadcasting Company
    –   Demo of Early Prototype
    –   Over a 24 Gbps Fiber Network
    –   18 minute video = 3.5 TB storage
   For Room Size Displays
    –   450‖ (37’) Diagonal
   16x the Resolution of HDTV
    –   7680x4320 pixels (vs. 1920x1080)
    –   32M total pixels (vs. 2M)
    –   60 frames/sec (vs. 30)
   22.2 Channel Audio
    –   10 at ear level, 9 above, 3 below
BACKUP
                                         BIG Broadband “Pipes”
                       For Today’s Apps AND Emerging Apps
        DSL, Cable
        … AND …
        Digital Music (28-700+ Kbps)
        JPG Images (28—2500 Kbps)
        Uncompressed Photo (1000-10000 KB)
        SDTV (500-2000 Kbps)
        Video Conference (500-2000 Kbps)

Dialup                                                      FTTH advanced
Text, Data (300 bps)                                        … AND …
Phone (8-64 Kbps)                                           Fast Channel Switching
                                                            HDTV Download & Go
                   FTTH basic
                   FTTH basic                               Surveillance (multiple cameras)
                   … AND …
                   … AND …                                  Peer-to-Peer (virtual concert)
                   SDTV (MPEG2: 4000-6000 Kbps)
                   SDTV (MPEG2: 4000-6000 Kbps)             Third Wave Computing
                   HDTV (MPEG2 1080i: 20,000 Kbps)
                   HDTV (MPEG2 1080i: 20,000 Kbps)          Massively Parallel Grid
                   HD Video Conference (6000-20,000 Kbps)
                   HD Video Conference (6000-20,000 Kbps)   Organic LEDs & UHDTV
  56
 Kbps    1 Mbps            100 Mbps Fiber                        1-10 Gbps Fiber
TOPICS:
• Alternative Futures
•   The Case for BIG Broadband
•   Addressing Social Issues
•   FTTH Technical Tutorial
•   Fiber as Public Infrastructure
•   Residential Gateways


                                        by Wayne Caswell
                                     © CAZITech Consulting, 2006
BIG Broadband
                                      Addressing Social Issues


   Drive Universal Broadband Adoption
    –   We ―invented‖ the Internet and once led the world in access
    –   But we have now fallen to 16th in percent of homes subscribing
   Economic Development
    –   Must regain our lost 60-year Tech Leadership (science grid)
   TeleWork
    –   Improve Employment options while Reducing Traffic
   TeleMedicine
    –   Contain Healthcare Costs with aging population
   Distance Learning
    –   Must recover from a Crisis in Education
   Bridge the Digital Divide
    –   Leaving people (and towns) behind will drain the economy
   Improve National Security
    –   It’s a matter of Survival
BIG Broadband
                                       Toward Universal Adoption


Goal: “This country needs a national goal for broadband technology…
universal, affordable access by 2007.”
          - President George W. Bush, Albuquerque, NM, March 2004

Benefits: “Broadband will not only help industry; it’ll help the quality of life
of our citizens.”
    •   Tele-Work
    •   Tele-Medicine
    •   Distance Learning
    •   National Security
    •   Jobs and Economic Growth
          - President George W. Bush, Albuquerque, US Department of Commerce, June 2004

Government’s Role: “The role of government is not to create wealth;
the role of our government is to create an environment in which the
entrepreneur can flourish, in which minds can expand, in which
technologies can reach new frontiers.”
          - President George W. Bush, Technology Agenda, November 2002
                                                                                  CONSULTING
Big Broadband:
                                          Toward Universal Adoption
                                                                   … CONTINUED

Economic Environment: “We ought not to tax access to broadband. If you
want something to flourish, don’t tax it.”
    • Extend Internet tax moratorium to Nov.2007, possibly permanent
    • Extend R&D tax credit, possibly permanent
    • Accelerate depreciation for capital equipment
          - President George W. Bush, Baltimore, April 2004



Regulatory Environment: “Broadband providers have trouble getting across
federal lands. That’s why I signed an order to reduce the regulatory red tape
for laying fiber optic cables and putting up transmission towers.”
    •   Improve access to Rights-of-Way
    •   FCC frees new fiber infrastructure from legacy regulation
    •   Verizon, SBC and Bell South to wire 20M new homes by 2007 (>$6B)
    •   Pending rewrite of 1996 Telecom Act
          - President George W. Bush, Baltimore, April 2004


                                                                           CONSULTING
BIG Broadband
                                   Toward Universal Adoption
                                                             … CONTINUED

Beware of statistics & forecasts designed to impress:
―95% of U.S. zip codes can access broadband today.‖
    20% of the population has No access,
    and others have no Competition.
―Broadband will be in 62% of US households by 2010.‖
    The FCC defines High-speed Internet access as
    anything faster than 200 Kbps in any one direction.

Already, 75% of South Korean households have broadband
that is 10-20 * faster and costs 10-25 * less.

In 1992, the Bells promised fiber and speeds of >45 Mbps
in each direction, in order to get regulatory concessions.

                                                                  CONSULTING
BIG Broadband
                                                            Toward Universal Adoption
                                                                                      … CONTINUED
                              ―Broadband will be in 62% of US households by 2010.‖
                                      (BUT at what speed and what cost?)
                  35

                  30
                                      Cable Modems
                  25
Subscribers (M)




                                      DSL Lines
                  20

                  15

                  10

                   5

                   0
                           1999           2000           2001         2002     2003     2Q'04
                       Source: NCTA 2004 Year End Industry Overview
                       Source: FCC 2004                                                     CONSULTING
BIG Broadband
                                          for Economic Development
        In 2005, US lost its 60-year tech leadership because
We now rank 12th in Broadband Adoption per 100 Inhabitants

                         DSL Cable     Other    Total                                  TOTAL
                      per 100 per 100 per 100 per 100                     Rank    Subscribers
Korea                    14.1      8.5    2.2   24.9                          1     11,921,439
Netherlands              11.6     7.4       0   19.0                          2      3,084,561
Denmark                  11.8     5.5     1.6   18.8                          3      1,013,500
Iceland                  17.4     0.2     0.7   18.3                          4         53,264
Canada                    8.6     9.1     0.1   17.8                          5      5,631,714
Switzerland              10.8     6.5       0   17.3                          6      1,282,000
Belgium                   9.6     6.0       0   15.6                          7      1,618,944
Japan                    10.4     2.3     2.3   15.0                          8     19,097,172
Finland                  11.2     2.2     1.6   15.0                          9        779,929
Norway                   12.3     2.0     0.5   14.9                         10        680,000
Sweden                    9.5      2.6    2.5   14.5                         11      1,302,861
United States             4.7     7.4     0.9   13.0                         12     37,900,000
Source: Organization for Economic Cooperation and Development, Dec.2004       3rd in 2000
BIG Broadband
                                               for Economic Development
                  The International Telecommunications Union (ITU) ranks the US in 16th place.

       US Ranks 12th in Broadband Adoption per 100 Inhabitants
30

25                                                             Community Wireless
                 DSL Cable Other                            That’s why municipalities without
                                                            broadband install their own Wi-Fi.
20

15

10
                                                                                OECD average
5

0
               Au om
               Ic e rk




                          m




               Me lic
                            l




Sl o Rep nd
   e ch Pol a d
                        te s




             Re bli c
            Au Ital y
              No nd
               Fin an




                         rg

              Po ny
            De nds



                           a




           G e a in
                           d




               Tu o
              G re ey
                 rl a a




                      e ce
       w Z trali a


                Ire y
            em tria
             Ki n ce




                        ga



            Hu and
            Sw ay
        i ted ed en
              Be nd




                      lan
     Sw anad
                     lan
     Ne Kore




                         r




                     x ic
                        a




                   l giu




                  pub
                  bou




                  nga
                       a
                     la




                     rk
                 J ap




                   gd
    i ted Fra n
                  nm




                  rtu
                  rw

                 Sta
                  rl a




                  Sp




                    u
                     s


                 rm




               eal
                 s
           i tze
              C
           the




    va k
    Lux
   Un




   Ne
Un




Cz
     Source: Organization for Economic Cooperation and Development, Dec.2004                     CONSULTING
BIG Broadband
                                                     for Tele-Work


   Traffic Issue                  APPLICATION               REQUIREMENT
     – Commute Time                Text                      300 bps
     – Fuel Costs                  Telephone                 8-64 Kbps
   Environmental Issue            Color Image               25-2,500 Kbps
    – Emissions                    Digital Photos            1,000-10,000 Kbps
   Employer Issue                 Digital Music             128-700 Kbps
     – Improve Productivity        Video Conferencing        512-2,000 Kbps
     – Hire & Keep Talent          MPEG-4 VoD (Internet)     250-750 Kbps
     – Reduce Offshoring Costs     MPEG-2 (DVD, Satellite)   4,000-6,000 Kbps
     – Real Estate Costs, Travel   HDTV (1080i MPEG-2)       20,000 Kbps
   Employee Issue
     – Family Values
   National Security Issue
     – Continuity of Operations
                                                                    CONSULTING
BIG Broadband
                                                                                              for Tele-Work
                                                           … CONTINUED
                         US Broadband Basics – Speed & Price




# ADSL Speeds depend on customer's distance from provider's central office. Cable line speeds can vary due to bandwidth sharing.
These speeds are maximum without sharing. Prices are based on customer also subscribing to phone service or cable TV service.


                        10-20 times slower than in France & South Korea
                           10-25 times more expensive than in Japan
                                 Notice the slow upload speeds.
    Source: U.S. Census Bureau                                                                                     CONSULTING
BIG Broadband
                                                                   for Tele-Work

                                           Loudoun Magazine Art
                                           Director Elizabeth Harding
            Fall 2004 Issue                confers with CEO Brett
                                           Phillips, Deputy Editor
                   Layout Options          Elizabeth Wilmer and
                   • Fashion Shot
                   • Designer Home
                                           Managing Editor Rita
                   • Landscape             Walston while debating
                   • Editor Portrait
                                           pros and cons of a
                                           candidate magazine cover.
                                           Participants could page
                                           through to discuss
                                           candidate covers.
                                           (mock-up screen shot)


TeleWork
•   Collaborative documents
•   Nonverbal communication
•   More like “being there”
•   Requires 512+ Kbps bandwidth in both directions


                                                                          CONSULTING
BIG Broadband
                                                                           for Tele-Medicine
                                                                                   Population Distribution
                                                                                       Male                            Female
                                                                    78.9                                    85+
                                                                                                           80-84           Baby Boom
                                                                                                           75-79
                                                             75.2                                          70-74
                                                                                                           65-69
                                                                                                           60-64
                                                                           1                               55-59
                                                      69.4                 9
                                                                                                           50-54
                                                                                                           45-49
                                                                                                           40-44

 Population 65                                                             6
                                                                           0
                                                                                                           35-39
                                                                                                           30-34
                                                                                                           25-29
                                                                                                           20-25

Years and Over                                                                                             15-19
                                                                                                           10-14
                                                                                                            5-9
                                                                                                            0-4
 (in millions) will                            53.2
 double by 2030                                                                                             85+
                                                                                                           80-84
                                                                                                           75-79
                                                                                                           70-74
                                                                                                           65-69
                                                                                                           60-64
            65+                                                            1                               55-59
                                                                                                           50-54

                                        39.4                               9                               45-49

            85+                                                            9
                                                                                                           40-44
                                                                                                           35-39
                                                                                                           30-34
                                 34.7                                      0                               25-29
                                                                                                           20-25
                                                                                                           15-19
                          31.1                                                                             10-14
                                                                                                            5-9
                                                                                                            0-4

                   25.6
                                                                                                            85+
                                                                                                           80-84
            20.0                                                                                           75-79
                                                                                                           70-74
     16.6                                                                  2
                                                                                                           65-69
                                                                                                           60-64
                                                                                                           55-59
                                                                           0                               50-54
                                                                                                           45-49

                                                      8.9                  2                               40-44
                                                                                                           35-39
                                                                           0                               30-34
                                                                                                           25-29

                          3.1    4.2                                                                       20-25
                                                                                                           15-19
                                                                                                           10-14
                                                                                                            5-9
                                                                                                            0-4
                                                                               6   5   4   3   2   1   0           0   1   2   3   4   5   6
     1960 1970 1980 1990 2000 2010 2020 2030 2040 2050                              % Total                              % Total
    Source: U.S. Census Bureau                                                     Population                           Population
BIG Broadband
                                                              for Distance Learning
   Other nations outpace US in engineering graduates
             # of 1st degree in Engineering / Science
 240,000
 220,000
 200,000
 180,000
 160,000
 140,000
 120,000
 100,000
                   3X
  80,000
  60,000
  40,000
                  Each
  20,000
       0


                                                                            U.S.
                                                                Russia
                             India
                 China




                                                    Japan




                                                                                                 Taiwan
                                       European




                                                                                       S Korea
                                         Union




Source: National Science Board, ―Science and Engineering Indicators – 2004‖;
        Table 2-33. Russia, India and S Korea data from University of Texas NCR Report 2004               CONSULTING
BIG Broadband
                                                                                         for Distance Learning
     Rates for entry into college / university , the U.S. ranks 14th*
80

70

60

50

40

30

20

10

0




                                                                                                                   Kingdom
                                                                                     Netherlands
                Finland




                                   Poland
                          Sweden
      Zealand




                                                                                                                             Denmark
                                            Australia

                                                        Norway




                                                                                                                                               USA
                                                                           Hungary
                                                                 Iceland




                                                                                                                                       Italy
                                                                                                   Korea


                                                                                                           Spain

                                                                                                                   United
      New




                                                                                                                                       CONSULTING
Source: Organization for Economic Cooperation and Development (OECD),
        Education at a Glance, OECD Indicators, 2003 Edition
BIG Broadband
                                                                                                                 for Distance Learning
                                           Percentage of the population scoring at IALS literacy
     %                                       level 3 or higher on the document scale, 1994-95
90                                                                                                                            16-25 yrs of age       46-55 yrs of age
         80
                       77                   76
                  73
                                                           67          67            66           66
                                                                                                                 62
                                                                                                            58                   56
                                      52              52                                     52                                            53
                                                                                                                          49                         50                  51
                                                                 46           45                                                      47        45                  45

                                                                                                                                                               34             35


                                                                                                                                                                                        17




0
                                                                                                                  Australia




                                                                                                                                           Zealand
                                            Belgium




                                                                                                                                 Kingdom
                                                            Canada




                                                                                                  Germany




                                                                                                                                                                    United




                                                                                                                                                                               Poland
                                                                                                                                                     Ireland
                        Netherlands




                                                                                                                                                                    States
         Sweden




                                                                      Switzerland



                                                                                    Switzerland




                                                                                                                                  United



                                                                                                                                            New
                                                                                        (Fr)
                                                                          (g)




           Source: Centre for Educational Research and Innovation, Organization for Economic
           Cooperation and Development, Education at a Glance OECD Indicators 1998
                                                                                                                                                                    CONSULTING
BIG Broadband
                                               to Bridge the Digital Divide


                             Of Every 100 Kindergartners:
                               Latino                             (24 year-olds)                                White
                                   62                   Graduate High School                                      91
                                   29                 Complete Some College                                       62
                                    6               Obtain Bachelors Degree+                                      30
                             Source: US Bureau of Census, Current Population Reports,
                             Educational Attainment in the United States; March 2000



                             College Graduates by Age 24
  BROADBAND at HOME            Young People from High Income Families                                             48%
<10% of HH w/ income <$25K
60% of HH w/ income >$150K     Young People from Low Income Families                                               7%
                             Source: Tom Mortenson, Research Seminar on Public Policy Analysis of
                             Opportunity for Post Secondary, 1997 in From: Latino Health Care Project, Report
                             at Casey Journalism School for Children and Families


                                                                                                                CONSULTING
BIG Broadband
                                                to Bridge the Digital Divide



   Technology for All
 Houston’s Free Wi-Fi network
for Low Income Neighborhoods




    MIT’s $100 Computer
     Aimed at 3rd World countries,
      500 MHz, 1GB flash, Linux
    Touch screen, Wind-up power,
    Rugged, Flexible, Wi-Fi mesh
   Source: http://laptop.media.mit.edu/
                                          Source: Jim Brazell, Millennials study, 2005
BIG Broadband
                                                  For National Security

Wireless: “The spectrum that allows for wireless technology is a limited resource
… and a wise use of that spectrum is to help our economy grow, and help with the
quality of life of our people.” - President George W. Bush, Baltimore, April 2004
    • Wi-Fi (802.11) in tens of thousands of hot spots (and entire cities)
        802.11n raw speeds approaching 500 Mbps at short distance
    • WiMax (802.16) for >60 businesses or 100+ homes (T-1 speed)
        Possible extention of advanced (―3G‖) services
    • Millimeter Wave (30-300 GHz spectrum) may yield 5Gbps in ~5 years
    • But wireless has Security Risks
         Eavesdrop, Access, Denial-of-Service, etc.
Broadband over Power Lines: “We need to get broadband to more Americans…
One great opportunity is to spread broadband throughout America via our power
lines.” - President George W. Bush, Albuquerque, US Department of Commerce, June 2004
    • FCC has adopted BPL rules
    • Utilities, hotel operators and others are moving beyond trials
    • But wireless has Security Risks
          Eavesdrop, Access, Denial-of-Service, etc.
                                                                             CONSULTING
Big Broadband
                                               For National Security
                                                                 … CONTINUED


   Remember Pearl Harbor
    We were blind-sided because we couldn’t monitor encrypted signals.
    Things improved when:
       1. We captured a Japanese black box and were able to decrypt transmissions.
       2. We started using the spoken Navajo Indian language so they couldn’t
          monitor our transmissions.
   The US is Falling Behind in Fiber Deployment
    With short-term vision, we focus more on Wireless & Powerline as alternatives
    while much of Asia deploys fiber.
   Fiber networks are More Difficult to Monitor (spy on)
    No Electromagnetic Radiation, so requires Physical Connection
   Fiber networks support Grid Computing
    Can apply grid to solving social problems (biomed, global warming) … OR
    Can apply grid for military use (decrypt enemy transmissions)
TOPICS:
•   Alternative Futures
•   The Case for BIG Broadband
•   Addressing Social Issues
•   FTTH Technical Tutorial
•   Fiber as Public Infrastructure
•   Residential Gateways



                                        by Wayne Caswell
                                     © CAZITech Consulting, 2006
Technical Tutorial
                              Why Fiber-to-the-Home?


   Fiber versus Copper (DSL or Cable)
   FTTH extends Fiber DEEPER (all the way)
   Enormous information carrying Capacity
 Relatively Easy to Install & Upgrade
 Reduced Operations & Maintenance Costs
 Allows fully Symmetric services
 Other Benefits of optical fiber:
    –   Very long distances
    –   Strong, flexible, and reliable
    –   Allows small diameter and light weight cables
    –   Secure
    –   Immune to electromagnetic interference (EMI)
Technical Tutorial
                Fiber versus Copper (DSL or Cable)

      //




Glass Fiber                  Copper
 Uses light                  Uses electricity
 Transparent                 Opaque
 Nonconductive Dielectric    Electrically Conductive
  Material                     Material
    – EMI immune (secure)        – Susceptible to EMI
 Low thermal expansion       High thermal expansion
 Brittle, rigid material     Ductile material
 Chemically stable           Subject to corrosion and
                               galvanic reactions
                                Fortunately, its recyclable
BIG Broadband and Gigabit-to-the-Home
BIG Broadband and Gigabit-to-the-Home
BIG Broadband and Gigabit-to-the-Home
BIG Broadband and Gigabit-to-the-Home
BIG Broadband and Gigabit-to-the-Home
BIG Broadband and Gigabit-to-the-Home
BIG Broadband and Gigabit-to-the-Home
BIG Broadband and Gigabit-to-the-Home
BIG Broadband and Gigabit-to-the-Home
BIG Broadband and Gigabit-to-the-Home
BIG Broadband and Gigabit-to-the-Home
BIG Broadband and Gigabit-to-the-Home
BIG Broadband and Gigabit-to-the-Home
BIG Broadband and Gigabit-to-the-Home
BIG Broadband and Gigabit-to-the-Home
BIG Broadband and Gigabit-to-the-Home
BIG Broadband and Gigabit-to-the-Home
BIG Broadband and Gigabit-to-the-Home
BIG Broadband and Gigabit-to-the-Home
BIG Broadband and Gigabit-to-the-Home
BIG Broadband and Gigabit-to-the-Home
BIG Broadband and Gigabit-to-the-Home
BIG Broadband and Gigabit-to-the-Home
BIG Broadband and Gigabit-to-the-Home
BIG Broadband and Gigabit-to-the-Home
BIG Broadband and Gigabit-to-the-Home
BIG Broadband and Gigabit-to-the-Home
BIG Broadband and Gigabit-to-the-Home
BIG Broadband and Gigabit-to-the-Home
BIG Broadband and Gigabit-to-the-Home
BIG Broadband and Gigabit-to-the-Home

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BIG Broadband and Gigabit-to-the-Home

  • 1. See the future of BIG Broadband and Gigabit-to-the-Home by Wayne Caswell © CAZITech Consulting, 2006 Photo courtesy of Sandia National Laboratories
  • 2. TOPICS: • Alternative Futures • The Case for BIG Broadband • Addressing Social Issues • FTTH Technical Tutorial • Fiber as Public Infrastructure • Residential Gateways by Wayne Caswell © CAZITech Consulting, 2006
  • 3. Alternative Futures MKT-DRIVEN ENABLING REQUIREMENTS INFRASTRUCTURE “BIG” BROADBAND Invest in network Invest in excess BROADBAND capacity to satisfy capacity ahead of bandwidth needs of market demand to PUBLIC SECTOR popular & profitable encourage applications. innovation and BENEFIT-DRIVEN Discourage use of enable new apps Political and Citizen-Focused BW-intensive apps that would not Free or Low Cost Encourages High Adoption that increase costs evolve otherwise. Economy Drives More Capacity Investment or slow performance (attract business, close divide, incr.tax base) of others. PROFIT-DRIVEN Business case needs ROI & Quick Payback High Adoption Rate * High ARPU (monopoly) From Fixed Price to Usage-based (by Time, Volume, Transaction) PRIVATE INDUSTRY
  • 4. Alternative Futures Continued PUBLIC  Legislators can’t ignore early successes  BB FTTH becomes strategic infrastructure for from Muni Wireless and Regional Fiber public safety, public health, economic initiatives and remove limiting laws development, jobs, education, and innovation  Rural & underserved communities adopt  Open access provides level playing field for WiMAX & Wi-Fi Mesh at increasing rate to competition through Fiber & Wireless address digital divide, economic  Beyond interactive entertainment, G2Home development, and other social issues enables social benefits unheard of before  Public-Private partnerships increase  US regains world tech leadership due to BB  BW varies widely by municipality, so many adoption, pricing and capabilities BIG BB opportunities still go unfulfilled  G2Home initiative provides nearly unlimited BW, but still need tiered pricing to prevent abuse BB BIG BB  Prices fall slightly as DSL & Cable operators  FTTH only in new (green field) and wealthy face new competition from wireless & BPL (high-margin) neighborhoods, ignoring others  Usage varies with all-you-can-eat pricing  Popular fixed-priced pricing of service bundles due to a few users of BW-intensive apps lock out competitors, causing overall prices to  24-100 Mbps possible but operators throttle rise with IPTV and users of BW-intensive apps usage as costs grow faster than revenue  Digital Divide widens considerably, social  Broadcast still dominates over IPTV unrest increases, US position in world economy  Digital Divide remains since rural & low- falters, and Congress is eventually forced to income populations remain underserved react to the lack of competition  BIG BB opportunities go unfulfilled PRIVATE
  • 5. BIG Broadband A New Philosophy Bandwidth is becoming a strategic imperative as governments weigh public policy versus profit motives. Is BIG Broadband driven by market demand for bandwidth-intensive applications? … or … Is BIG Broadband an Enabler of innovation and apps that would not appear otherwise?
  • 6. BIG Broadband & Clutter’s Law A New Philosophy Bandwidth is getting cheaper faster than storage. Storage is getting cheaper faster than computing. The exponentials are crossing. “A global economy designed to waste transistors, power, and silicon area -and conserve bandwidth above all- is breaking apart and reorganizing itself to waste bandwidth and conserve power, silicon area, and transistors." (George Gilder, Telecosm, 2000) www.ces.net/doc/seminars/20040525/ pr/customer_empowered_networking_thru_UCLP.ppt
  • 7. The Broadband BOTTLENECK Hurts Upstream Benefactors  Application Service Providers  Network Equipment Manufacturers  PC & CE Manufacturers  Content Providers … Hurts Downstream Consumers  Education & Jobs  Healthcare  Commuting & Lifestyle … Hurts Communities & Government  Failing Local Competitiveness  Loss of World Tech Leadership  National Security Risk  Increasing Social Unrest …
  • 8. Without BIG Broadband in place, many applications will not emerge, and while today’s consumer may place low value on them, that would change if the apps Network Requirements Bandwidth & Latency vs. Value s) ED ic L an g org utin V( mp NOTE: These relative measures of Network Requirements (bandwidth & latency) versus Application VALUE are subjective. do appear. (example: Rich Peer Collaboration – music ensemble). 4 3 2 1 0 DT Co ng UH Gr id uti lel mp ral Co ion ing Pa ve rat itch Wa bo sw ird olla el Th rC nn ee ha ) hP tc HD Ric fa s le ith ltip -2) Vw mu EG IPT e( nc MP illa d( rve lo a Su wn Do -4) TV ce EG HD en MP -2) re s d( EG lep lo a MP Te wn at y) Do 4-5 alit TV V, qu ) HD DT ert itch (H nc -tw eo co gh Vid ic ( (hi ) us ng ow lM mi nd ita Ga .wi Dig er (sm la y ce ltip re n 4) Mu nfe G- y) Co PE alit eo ,M qu Vid TV CD w) (SD ar- slo eo ne e, Vid ic ( ag us .im ng ) lM sm ari ita e( (sh Dig nc hy illa rap IP) rve tog (Vo Su ho ne d) Bandwidth lP ho se ita lep Latency Dig Te res es mp ag Vaue et co im ern ic ( p le Int us lM Sim ita g, Dig sin row bb at) We rts ch Ale ail, or (em ns Se ata &D xt Te Bandwidth Latency Vaue
  • 9. Value vs. Bandwidth & Latency Network Requirements bandwidth. Even high-twitch multi-player games need fast latency but little bandwidth. When implemented, medical & sensor alerts have high value. at) ch Today’s high-value apps (email, browsing, gaming) need relatively little ail, (em ata es ag NOTE: These relative measures of Application VALUE versus Network Requirements (bandwidth & latency) are subjective. &D s im 4 3 2 1 0 xt rt p le Te Ale or Sim sed) ns g, Se sin res row mp bb co IP) We ic ( (Vo us ne ng ) ita lM ho ari Dig lep (sh ) Te hy low et rap ge, s ern tog ty ) Int ho a .im quali lP sm ita e( CD Dig nc ar- illa ne rve ic ( 4) ) Su us G- ow Bandwidth lM PE nd ita ,M .wi ) Latency Dig TV e (sm itch (SD Vaue c -tw eo re n (hi gh Vid nfe ng y) Co mi alit eo Ga qu Vid er ert -2) la y nc EG co ltip ic ( MP Mu us at lM 4-5 -4) ita V, EG Dig HDT MP ( d( eo lo a Vid wn Do -2) TV ce EG HD en MP re s d( ) lep lo a HD ing Te wn iple itch Do ult sw TV (m el HD lance nn il ha rve tc n Su fas oratio ith b V w C olla ting IPT ee r u mp hP Co tin g Ric ve pu W a Com ird id s) Th Gr ED lel ic L ral an Pa org V( DT UH Bandwidth
  • 10. Pricing influences BEHAVIOR From Fixed Price to Tiered Pricing to prevent Abuse of Bandwidth by Consumers AND Network Operators BACKGROUND:  Application value (phone & TV) justified initial NW investments.  But always-on convergence and the ability to send these apps over competing networks gave consumers new choices and commoditized application value (e.g. long distance & local phone, music)  So, network build-out is now only justified by: – Private industry’s Triple Play bundles to lock customers and increase ARPU – Municipalities as strategic public infrastructure  Either way, excess capacity is quickly consumed by early adopters according to Clutter’s Law: “Clutter expands to fill the space available.” – Since applications and users become wasteful of bandwidth, storage & computing capacity, network operators will seek ways to contain abuse by a few in order to better serve all, possibly throttling innovation too.  Usage-based Pricing based on Time, Volume, Transaction, etc.
  • 11. Pricing influences BEHAVIOR Chargeback systems recovered costs but discouraged use. LESSONS FROM CORPORATE IT CHARGEBACK SYSTEMS:  ―All-you-can-eat‖ policies encouraged individual departments & users to waste ―expensive‖ IT resources, so chargeback helped recover costs. – But users didn’t understand billing based on computer terms (e.g. MIPS), and these schemes failed to reward the apps with the most business value.  Even business measurements failed (orders taken, invoices printed). – In general, chargeback ―discouraged‖ computer use instead of encouraging it.  As computing ideology moved from Expense to Strategic Initiative, chargeback systems, if they survived at all, produced ―virtual bills‖ to discourage abuse or found ways to encourage strategic apps at the expense of frivolous ones.
  • 12. Pricing influences BEHAVIOR Tiered Pricing can be based on Time, Volume or Transaction TIERED PRICING can also be DYNAMIC  Bandwidth-intensive apps subsidize bandwidth-conservative apps  High-value subscribers subsidize low-income subscribers, economic development, and public safety.  Access to city portals and government pages is always free.  First hour is free to encourage use, then charged on a sliding scale. – Low-volume apps are free (email, chat, browsing, sensor alerts) – But High-volume apps require a fee (music/video streaming & download)  Apps with high social value are free (education, telemedicine)  Apps with business benefit require a fee (teleconference, telework)  Premium fees for apps consuming the most capacity (HDTV, telepresence)
  • 13. TOPICS: • Alternative Futures • The Case for BIG Broadband • Addressing Social Issues • FTTH Technical Tutorial • Fiber as Public Infrastructure • Residential Gateways by Wayne Caswell © CAZITech Consulting, 2006
  • 14. Big Broadband The case for 100 Mbps  Dial-up speeds (28.8–56 Kbps) limit Internet Applications: Text & Data (email & chat) Web Browsing with simple images Digital Music compressed with low quality sampling rates for small files Internet Telephone (VoIP)  Broadband (1-5 Mbps) supports More Applications: Digital Music Downloads & Streaming with near-CD quality Digital Photography & Sharing of Photos Video Conferencing with video in a small window Video Streaming with low quality in a window Video Surveillance with small images or slow refresh rate  Big Broadband (100 Mbps) supports Even More Apps: High Quality Digital Music HDTV: 4-5 simultaneous streams (1080i MPEG-2 needs ~20 Mbps) Download Movies in minutes instead of hours Video Conferencing that’s almost like being there
  • 15. Big Broadband The case for 100 Mbps But is 100 Mbps enough?  Possibly multiple HDTV streams per TV Simultaneous DVR recordings to watch later 3-5 HDTV streams * 20 Mbps each = 100 Mbps, but what about Picture-in-Picture? Large HDTV displays can support Picture Marquee (4-9 streams per TV)  Fast Channel Change Consumers will want to ―flip‖ through IPTV channels just like broadcast channels, but that can mean switching between different servers.  New HDTV Format: 1080p The Resolution of 1080i (great on big screens) + the Speed of 720p (30 fps) Needs 30+ Mbps (more than cable, satellite or terrestrial broadcaster has) Without Big Broadband, market success is limited by a fierce DVD standards war.  Video Compression impacts quality, at least to some extent MPEG-4 and WM-9 use less bandwidth than MPEG-2 but with tradeoffs. Example: Can’t see fast moving golf ball leave the tee
  • 16. BIG Broadband Gigabit-to-the-Home Enables More  Rich Peer-to-Peer Collaboration Remote musicians perform together with the high bandwidth and short latency of fiber networks.  Third Wave Computing Consumers are dusting off their video archive to share online. As more apps move from PCs to the Internet, there’s less need for local hard drives except as a buffer. Data moved to trusted services is secure and protected, accessable anywhere, and shared with authorized visitors.  Massively Parallel Computing Grid Consumers share the capacity of otherwise-idle PCs across high-speed networks that enable massively parallel computing applications such as predicting the effect of global warming.  Download to Portable Device & Go Downloading The Matrix (7.8 GB in MPEG2 DVD format, not HDTV) takes 11.5 hours at 1.5 Mbps, 10.5 minutes at 100 Mbps, 1 minute at 1 Gbps, and 6 seconds at 10 Mbps. Future portable devices with HDTV resolution will need even faster speeds.  3D TV, Organic LEDs & UHDTV 3D TV requires even more bandwidth, LEDs will bring HDTV resolution to handheld displays, and nanotech materials will make wall-size displays practical. The 1080p HDTV resolution won’t be enough, so researchers are already working on Ultra-high Definition TV. UHDTV needs bandwidth exceeding 10 Gbps.
  • 17. BIG Broadband unlikely? Consider these False Predictions  INVENTION – "Everything that can be invented has been invented." – Charles H. Duell, commissioner of the US Patent Office, recommending that his office should be abolished (1899)  COMPUTERS – "I think there is a world market for about five computers." – Thomas J. Watson Jr., chairman of IBM (1943) – "640K [of computer memory] ought to be enough for anybody." – Bill Gates, founder and CEO of Microsoft (1981)  INTERNET – "Almost all of the many predictions now being made about 1996 hinge on the Internet's continuing exponential growth. But I predict the Internet will soon go spectacularly supernova and in 1996 catastrophically collapse." – Robert Metcalfe, founder of 3Com and inventor of Ethernet (1995)
  • 18. BIG Broadband unlikely? Consider these False Predictions … CONTINUED  TELEPHONE – "Well-informed people know it is impossible to transmit the voice over wires and that were it possible to do so, the thing would be of no practical value." – Boston Post (1865)  RADIO – "The wireless music box has no imaginable commercial value. Who would pay for a message sent to nobody in particular?" – David Sarnoff's associates responding to his urgings for investment in radio (April 1912)  TELEVISION – "Television won't last because people will soon get tired of staring at a plywood box every night." – Darryl Zanuck, Movie Producer, 20th Century Fox (1946)  ELCTRIC POWER – "Fooling around with alternating current is just a waste of time. Nobody will use it, ever." – Thomas Edison (1889)
  • 19. BIG Broadband for “Multiple” HDTV streams per TV DVR / Media Center Multiple Recordings Sports Marquee Multiple HD Channels Surveillance Multiple Cameras … simultaneously
  • 20. BIG Broadband for “Multiple” HDTV streams per TV … CONTINUED SURVEILLANCE MOVES TOWARD MASS MARKET with:  Higher Resolution Images Better Image Quality reveals more information  Faster Frame Rate Smoother motion  More Cameras CCD image sensors already in Cameras & PDAs  Cheap & Small CMOS sensors On-chip pixel processing Great when most of the image is static Will enable Facial & Gesture Recognition
  • 21. BIG Broadband for Fast IPTV Channel Switching  IPTV is part of a Mass Personalization trend On-demand & Interactive features yield deep consumer understanding. This enables very Personalized content and Ad insertions  IPTV Complements & Threatens DTV Broadcast model Broadcast is for Large Demographic; IPTV for Special Interests. Free spectrum + multicasting = better pictures + more channels. With more Free channels, do consumers even need Cable or Satellite? IPTV can satisfy Even More Special Interests.  IPTV needs the same experience Consumers channel surf quickly with a remote control. The TV ―quickly‖ tunes to specific channel Frequencies. But IPTV may need to connect to Distributed Video Servers.  Picture-in-Picture amplifies the effect Picture marquee makes it even worse.
  • 22. BIG Broadband for Fast IPTV Channel Switching FCC reclaims IPTV growing but still Low Penetration analog TV spectrum NOT yet Pervasive Growth needs Big Broadband 2009
  • 23. BIG Broadband for new HDTV format  1080p is new HDTV format that blends the best of: 1080i (Highest resolution for large 40+‖ displays) … and … 720p (60 fps progressive scan for rapid action versus 30 fps)  BUT, 1080p broadcasts need 30+ Mbps Cable, satellite & terrestrial broadcasters can’t handle that today.  AND, DVDs can’t store an entire movie Studios want new DVD format w/ better DRM before releasing content. Competing DVD formats are in a Standards War. Blue-ray (Sony & most CE companies) versus HD-DVD (Intel, Microsoft, NEC & Toshiba) Sony PS3 will include Blue-ray DVD player and support 1080p.
  • 24. BIG Broadband for Rich Peer-to-Peer Collaboration Multi-player Gaming Distributed, I mmersive Performance Signing & Lip Reading for the Deaf TelePresence breaks Distance Barriers Collaborative Music Performance over Internet 2
  • 25. BIG Broadband for Rich Peer-to-Peer Collaboration … CONTINUED LIVE STREAMING:  Latency is a Crucial Limiting Factor – Only ~ 20-40 ms is unnoticeable (for universal interactive applications) – In gaming, delays mean you get shot  Tradeoff: Latency versus bandwidth – Compression reduces bandwidth – But: high compression increases latency (e.g., interframe MPEG compression)  Approach: – Experiment within this design space e.g. resolution, frame rate, SW/HW codecs vs. uncompressed audio & video
  • 26. BIG Broadband for Rich Peer-to-Peer Collaboration Live HD Video Streaming with No Latency Delay 1280x720 pixels
  • 27. BIG Broadband for Third Wave Computing INTERNET APPLICATIONS First Wave – Text & Data services such as e-mail & FTP Second Wave – Images, sound & video improve Ease of Use Apps tightly APPLICATION APPLICATION Network is bound to OS subservient NETWORK to computer OS OS DATA DATA Third Wave – The Network is the Computer Apps & Data User Interface User Interface Computer is exist on the subservient Network NETWORK to Network OS OS APPLICATION APPLICATION APPLICATION APPLICATION Web Services, Open Source, Peer-to-Peer, Distributed, OS OS OS OS Agents, Java Spaces, Creative Commons DATA DATA DATA DATA
  • 28. BIG Broadband for Massively Parallel Computing  The World Community Grid – Many individual PCs join together to create a large system with massive computational power that far surpasses that of a handful of supercomputers. – Because the work is split into small pieces that can be processed simultaneously, research time is reduced from years to months. – More cost-effective technology enables better use of critical funds. – Data access speed is a critical limiting factor, but BIG Broadband offers remote access at local hard disk speeds.  Examples: – Detect extraterrestrial intelligence through analysis of radio telescope data – Human Proteome Folding Project – UNAIDS, the Joint United Nations Program to Fight HIV & AIDS
  • 29. BIG Broadband For Mobile Devices (Download & Go) Passive Broadcast Interactive On-Demand Mobile Downloading The Matrix (7.8 GB in SDTV DVD format) Delivery Method Days Hours Minutes Dial-up (56 Kbps) 13 Pony Express 11a Wireless (512 Kbps) 1.5b DSL (640 Kbps) 1 Cable (1.5 Mbps) 11.5 T1 (1.54 Mbps) 11 FedEx 10c Ethernet (10 Mbps) 2 Fast Ethernet (100 Mbps) 10.5 Gigabit Ethernet (1000 Mbps) 1 a New York to California: extrapolated from record delivery time of 7 days 17 hours, Download & Go traveling approximately 2,000 miles (from St. Joseph, Missouri to Sacramento, CA) b Maximum 150 users per node c Express delivery from New York, NY 10005 to Beverly Hills, CA 90210 CONSULTING
  • 30. BIG Broadband for Ultra-High Definition Television  Japan Broadcasting Company – Demo of Early Prototype – Over a 24 Gbps Fiber Network – 18 minute video = 3.5 TB storage  For Room Size Displays – 450‖ (37’) Diagonal  16x the Resolution of HDTV – 7680x4320 pixels (vs. 1920x1080) – 32M total pixels (vs. 2M) – 60 frames/sec (vs. 30)  22.2 Channel Audio – 10 at ear level, 9 above, 3 below
  • 31. BACKUP BIG Broadband “Pipes” For Today’s Apps AND Emerging Apps DSL, Cable … AND … Digital Music (28-700+ Kbps) JPG Images (28—2500 Kbps) Uncompressed Photo (1000-10000 KB) SDTV (500-2000 Kbps) Video Conference (500-2000 Kbps) Dialup FTTH advanced Text, Data (300 bps) … AND … Phone (8-64 Kbps) Fast Channel Switching HDTV Download & Go FTTH basic FTTH basic Surveillance (multiple cameras) … AND … … AND … Peer-to-Peer (virtual concert) SDTV (MPEG2: 4000-6000 Kbps) SDTV (MPEG2: 4000-6000 Kbps) Third Wave Computing HDTV (MPEG2 1080i: 20,000 Kbps) HDTV (MPEG2 1080i: 20,000 Kbps) Massively Parallel Grid HD Video Conference (6000-20,000 Kbps) HD Video Conference (6000-20,000 Kbps) Organic LEDs & UHDTV 56 Kbps 1 Mbps 100 Mbps Fiber 1-10 Gbps Fiber
  • 32. TOPICS: • Alternative Futures • The Case for BIG Broadband • Addressing Social Issues • FTTH Technical Tutorial • Fiber as Public Infrastructure • Residential Gateways by Wayne Caswell © CAZITech Consulting, 2006
  • 33. BIG Broadband Addressing Social Issues  Drive Universal Broadband Adoption – We ―invented‖ the Internet and once led the world in access – But we have now fallen to 16th in percent of homes subscribing  Economic Development – Must regain our lost 60-year Tech Leadership (science grid)  TeleWork – Improve Employment options while Reducing Traffic  TeleMedicine – Contain Healthcare Costs with aging population  Distance Learning – Must recover from a Crisis in Education  Bridge the Digital Divide – Leaving people (and towns) behind will drain the economy  Improve National Security – It’s a matter of Survival
  • 34. BIG Broadband Toward Universal Adoption Goal: “This country needs a national goal for broadband technology… universal, affordable access by 2007.” - President George W. Bush, Albuquerque, NM, March 2004 Benefits: “Broadband will not only help industry; it’ll help the quality of life of our citizens.” • Tele-Work • Tele-Medicine • Distance Learning • National Security • Jobs and Economic Growth - President George W. Bush, Albuquerque, US Department of Commerce, June 2004 Government’s Role: “The role of government is not to create wealth; the role of our government is to create an environment in which the entrepreneur can flourish, in which minds can expand, in which technologies can reach new frontiers.” - President George W. Bush, Technology Agenda, November 2002 CONSULTING
  • 35. Big Broadband: Toward Universal Adoption … CONTINUED Economic Environment: “We ought not to tax access to broadband. If you want something to flourish, don’t tax it.” • Extend Internet tax moratorium to Nov.2007, possibly permanent • Extend R&D tax credit, possibly permanent • Accelerate depreciation for capital equipment - President George W. Bush, Baltimore, April 2004 Regulatory Environment: “Broadband providers have trouble getting across federal lands. That’s why I signed an order to reduce the regulatory red tape for laying fiber optic cables and putting up transmission towers.” • Improve access to Rights-of-Way • FCC frees new fiber infrastructure from legacy regulation • Verizon, SBC and Bell South to wire 20M new homes by 2007 (>$6B) • Pending rewrite of 1996 Telecom Act - President George W. Bush, Baltimore, April 2004 CONSULTING
  • 36. BIG Broadband Toward Universal Adoption … CONTINUED Beware of statistics & forecasts designed to impress: ―95% of U.S. zip codes can access broadband today.‖ 20% of the population has No access, and others have no Competition. ―Broadband will be in 62% of US households by 2010.‖ The FCC defines High-speed Internet access as anything faster than 200 Kbps in any one direction. Already, 75% of South Korean households have broadband that is 10-20 * faster and costs 10-25 * less. In 1992, the Bells promised fiber and speeds of >45 Mbps in each direction, in order to get regulatory concessions. CONSULTING
  • 37. BIG Broadband Toward Universal Adoption … CONTINUED ―Broadband will be in 62% of US households by 2010.‖ (BUT at what speed and what cost?) 35 30 Cable Modems 25 Subscribers (M) DSL Lines 20 15 10 5 0 1999 2000 2001 2002 2003 2Q'04 Source: NCTA 2004 Year End Industry Overview Source: FCC 2004 CONSULTING
  • 38. BIG Broadband for Economic Development In 2005, US lost its 60-year tech leadership because We now rank 12th in Broadband Adoption per 100 Inhabitants DSL Cable Other Total TOTAL per 100 per 100 per 100 per 100 Rank Subscribers Korea 14.1 8.5 2.2 24.9 1 11,921,439 Netherlands 11.6 7.4 0 19.0 2 3,084,561 Denmark 11.8 5.5 1.6 18.8 3 1,013,500 Iceland 17.4 0.2 0.7 18.3 4 53,264 Canada 8.6 9.1 0.1 17.8 5 5,631,714 Switzerland 10.8 6.5 0 17.3 6 1,282,000 Belgium 9.6 6.0 0 15.6 7 1,618,944 Japan 10.4 2.3 2.3 15.0 8 19,097,172 Finland 11.2 2.2 1.6 15.0 9 779,929 Norway 12.3 2.0 0.5 14.9 10 680,000 Sweden 9.5 2.6 2.5 14.5 11 1,302,861 United States 4.7 7.4 0.9 13.0 12 37,900,000 Source: Organization for Economic Cooperation and Development, Dec.2004 3rd in 2000
  • 39. BIG Broadband for Economic Development The International Telecommunications Union (ITU) ranks the US in 16th place. US Ranks 12th in Broadband Adoption per 100 Inhabitants 30 25 Community Wireless DSL Cable Other That’s why municipalities without broadband install their own Wi-Fi. 20 15 10 OECD average 5 0 Au om Ic e rk m Me lic l Sl o Rep nd e ch Pol a d te s Re bli c Au Ital y No nd Fin an rg Po ny De nds a G e a in d Tu o G re ey rl a a e ce w Z trali a Ire y em tria Ki n ce ga Hu and Sw ay i ted ed en Be nd lan Sw anad lan Ne Kore r x ic a l giu pub bou nga a la rk J ap gd i ted Fra n nm rtu rw Sta rl a Sp u s rm eal s i tze C the va k Lux Un Ne Un Cz Source: Organization for Economic Cooperation and Development, Dec.2004 CONSULTING
  • 40. BIG Broadband for Tele-Work  Traffic Issue APPLICATION REQUIREMENT – Commute Time Text 300 bps – Fuel Costs Telephone 8-64 Kbps  Environmental Issue Color Image 25-2,500 Kbps – Emissions Digital Photos 1,000-10,000 Kbps  Employer Issue Digital Music 128-700 Kbps – Improve Productivity Video Conferencing 512-2,000 Kbps – Hire & Keep Talent MPEG-4 VoD (Internet) 250-750 Kbps – Reduce Offshoring Costs MPEG-2 (DVD, Satellite) 4,000-6,000 Kbps – Real Estate Costs, Travel HDTV (1080i MPEG-2) 20,000 Kbps  Employee Issue – Family Values  National Security Issue – Continuity of Operations CONSULTING
  • 41. BIG Broadband for Tele-Work … CONTINUED US Broadband Basics – Speed & Price # ADSL Speeds depend on customer's distance from provider's central office. Cable line speeds can vary due to bandwidth sharing. These speeds are maximum without sharing. Prices are based on customer also subscribing to phone service or cable TV service. 10-20 times slower than in France & South Korea 10-25 times more expensive than in Japan Notice the slow upload speeds. Source: U.S. Census Bureau CONSULTING
  • 42. BIG Broadband for Tele-Work Loudoun Magazine Art Director Elizabeth Harding Fall 2004 Issue confers with CEO Brett Phillips, Deputy Editor Layout Options Elizabeth Wilmer and • Fashion Shot • Designer Home Managing Editor Rita • Landscape Walston while debating • Editor Portrait pros and cons of a candidate magazine cover. Participants could page through to discuss candidate covers. (mock-up screen shot) TeleWork • Collaborative documents • Nonverbal communication • More like “being there” • Requires 512+ Kbps bandwidth in both directions CONSULTING
  • 43. BIG Broadband for Tele-Medicine Population Distribution Male Female 78.9 85+ 80-84 Baby Boom 75-79 75.2 70-74 65-69 60-64 1 55-59 69.4 9 50-54 45-49 40-44 Population 65 6 0 35-39 30-34 25-29 20-25 Years and Over 15-19 10-14 5-9 0-4 (in millions) will 53.2 double by 2030 85+ 80-84 75-79 70-74 65-69 60-64 65+ 1 55-59 50-54 39.4 9 45-49 85+ 9 40-44 35-39 30-34 34.7 0 25-29 20-25 15-19 31.1 10-14 5-9 0-4 25.6 85+ 80-84 20.0 75-79 70-74 16.6 2 65-69 60-64 55-59 0 50-54 45-49 8.9 2 40-44 35-39 0 30-34 25-29 3.1 4.2 20-25 15-19 10-14 5-9 0-4 6 5 4 3 2 1 0 0 1 2 3 4 5 6 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050 % Total % Total Source: U.S. Census Bureau Population Population
  • 44. BIG Broadband for Distance Learning Other nations outpace US in engineering graduates # of 1st degree in Engineering / Science 240,000 220,000 200,000 180,000 160,000 140,000 120,000 100,000 3X 80,000 60,000 40,000 Each 20,000 0 U.S. Russia India China Japan Taiwan European S Korea Union Source: National Science Board, ―Science and Engineering Indicators – 2004‖; Table 2-33. Russia, India and S Korea data from University of Texas NCR Report 2004 CONSULTING
  • 45. BIG Broadband for Distance Learning Rates for entry into college / university , the U.S. ranks 14th* 80 70 60 50 40 30 20 10 0 Kingdom Netherlands Finland Poland Sweden Zealand Denmark Australia Norway USA Hungary Iceland Italy Korea Spain United New CONSULTING Source: Organization for Economic Cooperation and Development (OECD), Education at a Glance, OECD Indicators, 2003 Edition
  • 46. BIG Broadband for Distance Learning Percentage of the population scoring at IALS literacy % level 3 or higher on the document scale, 1994-95 90 16-25 yrs of age 46-55 yrs of age 80 77 76 73 67 67 66 66 62 58 56 52 52 52 53 49 50 51 46 45 47 45 45 34 35 17 0 Australia Zealand Belgium Kingdom Canada Germany United Poland Ireland Netherlands States Sweden Switzerland Switzerland United New (Fr) (g) Source: Centre for Educational Research and Innovation, Organization for Economic Cooperation and Development, Education at a Glance OECD Indicators 1998 CONSULTING
  • 47. BIG Broadband to Bridge the Digital Divide Of Every 100 Kindergartners: Latino (24 year-olds) White 62 Graduate High School 91 29 Complete Some College 62 6 Obtain Bachelors Degree+ 30 Source: US Bureau of Census, Current Population Reports, Educational Attainment in the United States; March 2000 College Graduates by Age 24 BROADBAND at HOME Young People from High Income Families 48% <10% of HH w/ income <$25K 60% of HH w/ income >$150K Young People from Low Income Families 7% Source: Tom Mortenson, Research Seminar on Public Policy Analysis of Opportunity for Post Secondary, 1997 in From: Latino Health Care Project, Report at Casey Journalism School for Children and Families CONSULTING
  • 48. BIG Broadband to Bridge the Digital Divide Technology for All Houston’s Free Wi-Fi network for Low Income Neighborhoods MIT’s $100 Computer Aimed at 3rd World countries, 500 MHz, 1GB flash, Linux Touch screen, Wind-up power, Rugged, Flexible, Wi-Fi mesh Source: http://laptop.media.mit.edu/ Source: Jim Brazell, Millennials study, 2005
  • 49. BIG Broadband For National Security Wireless: “The spectrum that allows for wireless technology is a limited resource … and a wise use of that spectrum is to help our economy grow, and help with the quality of life of our people.” - President George W. Bush, Baltimore, April 2004 • Wi-Fi (802.11) in tens of thousands of hot spots (and entire cities) 802.11n raw speeds approaching 500 Mbps at short distance • WiMax (802.16) for >60 businesses or 100+ homes (T-1 speed) Possible extention of advanced (―3G‖) services • Millimeter Wave (30-300 GHz spectrum) may yield 5Gbps in ~5 years • But wireless has Security Risks Eavesdrop, Access, Denial-of-Service, etc. Broadband over Power Lines: “We need to get broadband to more Americans… One great opportunity is to spread broadband throughout America via our power lines.” - President George W. Bush, Albuquerque, US Department of Commerce, June 2004 • FCC has adopted BPL rules • Utilities, hotel operators and others are moving beyond trials • But wireless has Security Risks Eavesdrop, Access, Denial-of-Service, etc. CONSULTING
  • 50. Big Broadband For National Security … CONTINUED  Remember Pearl Harbor We were blind-sided because we couldn’t monitor encrypted signals. Things improved when: 1. We captured a Japanese black box and were able to decrypt transmissions. 2. We started using the spoken Navajo Indian language so they couldn’t monitor our transmissions.  The US is Falling Behind in Fiber Deployment With short-term vision, we focus more on Wireless & Powerline as alternatives while much of Asia deploys fiber.  Fiber networks are More Difficult to Monitor (spy on) No Electromagnetic Radiation, so requires Physical Connection  Fiber networks support Grid Computing Can apply grid to solving social problems (biomed, global warming) … OR Can apply grid for military use (decrypt enemy transmissions)
  • 51. TOPICS: • Alternative Futures • The Case for BIG Broadband • Addressing Social Issues • FTTH Technical Tutorial • Fiber as Public Infrastructure • Residential Gateways by Wayne Caswell © CAZITech Consulting, 2006
  • 52. Technical Tutorial Why Fiber-to-the-Home?  Fiber versus Copper (DSL or Cable)  FTTH extends Fiber DEEPER (all the way)  Enormous information carrying Capacity  Relatively Easy to Install & Upgrade  Reduced Operations & Maintenance Costs  Allows fully Symmetric services  Other Benefits of optical fiber: – Very long distances – Strong, flexible, and reliable – Allows small diameter and light weight cables – Secure – Immune to electromagnetic interference (EMI)
  • 53. Technical Tutorial Fiber versus Copper (DSL or Cable) // Glass Fiber Copper  Uses light  Uses electricity  Transparent  Opaque  Nonconductive Dielectric  Electrically Conductive Material Material – EMI immune (secure) – Susceptible to EMI  Low thermal expansion  High thermal expansion  Brittle, rigid material  Ductile material  Chemically stable  Subject to corrosion and galvanic reactions  Fortunately, its recyclable