Real story, real numbers – A case studyFTTH ConferenceMilano, February 10th 2011Birgir Rafn Thrainsson, CEOReykjavik Fiber...
ObjectiveTell you about the        Share information,      For comparison toReykjavik FTTH project,   progress numbers,   ...
AgendaBackground     Business model    FTTH networkCost figures   Lessons learned
About Reykjavík Fiber NetworkBuilds and operates an     A subsidiary of Reykjavik   Fiber backbone networkOptical Fiber Ne...
About Reykjavík Fiber Network
Consumer Broadband MarketReykjavik municipality area
Why FTTH?                     Utilize existingVision               network            Utility approachImprove quality of  ...
Why FTTH?                         Reliable serviceTelecom competition      delivery                BandwidthExisting coppe...
Fiber Network overview
Open Access – Active SharingOpen Access             Active SharingBased on the            Reykjavik Fiberfollowing criteri...
Rollout Strategy Contracts with Municipalities Contracts with Service Providers Deployment                         Priorit...
Average Revenue Per User (ARPU)
Consumer prices
Current Status  Connected homes: 38.000  Rollout progress: 58%     Subscribers: 11.000  Connect rate: 99%         Take rat...
DeploymentCurrent Network Size449 Passive POPs74 Active POPs2330 Manholes600 Splice closures2100 km of Ducts2700 km of Fib...
DeploymentActive POP stationsDesigned for connecting up to400, 720 or 1440 homesActual connections 100 to 2000homes pr. PO...
DeploymentDuctsDucts buried in 40-50 cm depth ,single ducts next to houses on 30 cmMulti ducts diameter 50 mm, with8 or 18...
DeploymentFiber cablesSingle mode fiberSingle fiber connected pr. homeAverage fiber length between homeand POP is 518 mete...
Deployment
Deployment
Deployment
Indoor Installation
Indoor Installation
Indoor Installation
Indoor Installation
Active Network
Active NetworkNetwork design                         Max 6                                       Max 36    Point-to-point ...
Active NetworkCurrent network size                                               10 (2x5)   4 (2x2)                     14...
Active NetworkCurrent network connections                           2 Gbit/s (2x1)              100 Mbit/s                ...
Active NetworkNetwork equipment Telsey CPEs CPL3, CPL5, CPL7                    Cisco 45xx     Cisco 76xx   Cisco 76xx    ...
Bandwidth usageBandwidth per subscriber
Who’s paying?Investment paid by Reykjavik Fiber           No payments for rights-of-way,Network:                          ...
Who’s paying?Investment paid by Reykjavik Fiber           No payments for rights-of-way,Network:                          ...
CAPEXCAPEX connecting a home      adding a subscriber
CAPEXCAPEX connecting a home      adding a subscriber
Numbers based on actual figures for connecting 38.000 homes and adding 11.000CAPEX                     subscribers togethe...
CAPEX
°Lessons learnedSelect your rollout       Involve the community       Treat muncipalities asstrategy carefully        from...
Thank you – Q&A
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Breakout session day 2 ftth business case birgir rafn thrainsson

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FTTH Conference Milan 2011 Day 2

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Breakout session day 2 ftth business case birgir rafn thrainsson

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

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