FTTH Conference 2009 UFINET


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FTTH Conference 2009 UFINET

  1. 1. UFINET A Business Model Based on FTTH Infrastructure Neutral Operator, to Provide Service to Several Operators FTTH Council Europe Conference Bella Center, Copenhagen, Denmark. 11-12 February, 2009.
  2. 2. Agenda Company overview Business approach Network topology Field trials FTTH Infrastructure Neutral Operator 2
  3. 3. UNION FENOSA overview • UNION FENOSA is an integrated energy group that operates in 15 countries in the gas and electricity markets. GENERATION Main figures GENERATION 11,699 MW of own installed capacity 2007 Millions of euros DISTRIBUTION DISTRIBUTION GENERATION & DISTRIBUTION 9.1 million gas & electricity customers 6,011 REVENUES SUPPLY GAS/COAL 59,016 million KWh electricity suplied GENERATION, DISTRIBUTION 3,104 CONTRIBUTION MARGIN SUPPLY AND GAS 38,044 million KWh of gas invoiced 2,062 EBITDA MEXICO 1,466 EBIT COSTA RICA 986 ATTRIBUTABLE NET PROFIT SPAIN & MOLDOVA PORTUGAL REPUBLIC EBITDA by business * DOMINICAN * Excludes “other” EGYPT REPUBLIC Gen. GUATEMALA 35% Inter. OMAN 26% Central NICARAGUA 8% America & Gas 13% 5% Other PANAMA 16% Dist. KENYA Colombia 23% Mexico COLOMBIA SOUTH AFRICA FTTH Infrastructure Neutral Operator 3
  4. 4. UFINET overview • UNION FENOSA Redes de Telecomunicacion (UFINET), is the telecommunications company created by UNION FENOSA, with the objective of providing advanced, high quality telecommunications services and infrastructures. • Business areas: – Telecommunications infrastructure provision to Operators. – Design and supply of specialized telecommunication services to operators and corporations. – Integral telecommunications solutions supply to Union Fenosa Group and to business holdings corporations. • International presence in Panama, Colombia, Guatemala and Nicaragua. FTTH Infrastructure Neutral Operator 4
  5. 5. UFINET overview II • Network figures: – 11,100 fibre optics kilometers. – 850 network sites. • Economical figures EBIT (thousands of euros) 14000 12000 10000 8000 6000 4000 2000 0 2004 2005 2006 2007 2008 FTTH Infrastructure Neutral Operator 5
  6. 6. UFINET services • Dark fibre leasing Infrastructure • Colocation Management • Rights of way • SDH, IP and Ethernet transmission services. Virtual fiber and transmission • Virtual Fibre solutions (DWDM) . capacity • MPLS solutions. • Real Time Communications Telecontrol, Telemetering, Telemanagement, ATM, etc. Satellite services • IP & VPN´s Connectivity for Intranet access. • Internet Access. Corporate Provision and management of all the telecommunications services services for UNION FENOSA Group FTTH Infrastructure Neutral Operator 6
  7. 7. Business approach • Why UFINET in FTTH? – Experience in fibre optic networks deployment and management. – Sinergies with the utility for infrastructure deployments. – Committed to incorporate innovation solutions to the telecommunication market. FTTH, A BUSINESS OPPORTUNITY • Business type? VERTICAL SP 1 VERTICAL SP 1 SERVICES SP 1 SP 2 SP N SP 1 SP N VERTICAL NETWORK ACTIVE EQUIPMENT OPERATOR OPERATOR NETWORK OPERATOR PASSIVE INFRASTRUCTURE INFRASTRUCTURE OPERATOR FTTH Infrastructure Neutral Operator 7
  8. 8. Business approach OUR MODEL NEUTRAL INFRASTRUCTURE OPERATOR WHAT? HOW? WHY? • PON vs ETHERNET P2P? PON • OPEN ACCESS NETWORK • EXPERIENCE AND KNOW HOW The more customers, the Consolidated dark fiber provider • PON FITS BETTER: more business Smaller cable size - easier •SINERGIES WITH UTILITY maintenance • WHOLESALE MODEL: Infrastructure deployments, Our customers remain as civil works, ducts. Less space demanding - reuse customers, not as of Utility substations. competitors. •BUSINESS EXPANSION: From core to access •ADDITIONALLY … HYBRID MODEL • ‘DARK FIBER LOCAL LOOP’ Point to point links for Similar to ULL model in Spain •A NEW ACCESS INFRASTRUCTURE: corporate customers for ADSL market. Promote competition in access • ALTERNATIVE OPERATORS DEMAND: A solution to overcome access infrastructure deployments barrier FTTH Infrastructure Neutral Operator 8
  9. 9. Network topology • FTTH access network is pasive, based on PON architecture. – Additionally, hybrid network deployment. Co-existence of PON topology and point to point links. • Network deployment runs from UFINET local colocation site to optical outlet at end-user premises. • Each area is covered with 3 PON trees in parallel, one per operator. • PON trees allocated to different operators are independent each others. – Operators can install their preferred PON equipment (ONT’s y OLT’s). – Operator independency for service definition. FTTH Infrastructure Neutral Operator 9
  10. 10. Network topology UFINET fibre optic network UNION FENOSA Operator #1 Operator #1 site customers backhaul PON 1 Op.#1 equip. PON 2 Operator #2 Operator #2 Op.#2 equip. customers backhaul Op.#3 equip. PON 3 Operator #3 Colocation space customers for operators Operator #3 equipment backhaul FTTH Infrastructure Neutral Operator 10
  11. 11. Network topology Building #1 Building #2 Building #N ONE INFRASTRUCTURE, Access point 2nd splitting stage THREE INDEPENDENT NETWORKS Riser cable Local colocation site - UFINET 1st splitting stage Access cable OLT OP1 Backhole OLT OP2 Backhole OLT OP3 Backhole Distribution point Feeder cable at UFINET site FTTH Infrastructure Neutral Operator 11
  12. 12. Commercial model • UFINET commercial approach: fibre optic local loop rental model, similarly to the regulated ULL model for copper pairs local loop. • UFINET provides operators with a wholesale access service, from the local colocation site to end user’s home. • Main invoicing items are : OBA UFINET - FTTH Space rental for colocation of Space rental for colocation of alternative operators devices at alternative operators devices at COLOCATION incumbent’s Central Office Utility substation. Copper pairs local loop rental Fibre optic to the home rental LOCAL LOOP per unbundled user. per connected user. User connectivity availability per AVAILABILITY passed area. • The cost for each operator varies with the number of customers connected. FTTH Infrastructure Neutral Operator 12
  13. 13. Advantages for the alternative operators • An alternative FTTH access network independent from the incumbent’s one. – Commercial rollout not tied to incumbent’s deployment. Opportunity in areas not covered by the incumbent. • Solution for main barrier to entry : access infrastructure deployment. • Efforts focused on the network management and the definition and commercialisation of innovative retail services • Alternative operators to use their active solution: service differentiation. • Commercial model: – Market relationship, not regulated relationship. – Minimization y variabilization of rollout costs. – Minimization of the impact in the existing internal procedures. FTTH Infrastructure Neutral Operator 13
  14. 14. Field Trials • Two field trial in Madrid. • Objectives: – For UFINET: • To test different passive network components: splitters, splice boxes, connector housings, risers, optical outlets. • To verify and tune network design criteria. • To collect information as an input for the business model. – For operators: • To test different FTTH technology providers according to their requirements. • Service definition and commecialization within the field trial areas – For UFINET and operators: • To define end-user provision procedures and FTTH network maintenance procedures. • Two areas representing different urban environments: – New area with common telecommunications infrastructure. – Old area without common telecommunications infrastructure. FTTH Infrastructure Neutral Operator 14
  15. 15. Field Trials. Vicalvaro Location Vicalvaro (Madrid) Tyoe of area New area Urbanization 14 passed Home passed 2179 Architecture Passive, PON Operators 3 (at the most) OLT colocation Vicalvaro subs. FTTH Infrastructure Neutral Operator 15
  16. 16. Field Trials. Chamberi Location Chamberi (Madrid) Type of area Old area Block passed 5 Building passed 46 Home passed 792 Architecture Passive, PON Operators 3 (at the most) OLT colocation Norte Substation FTTH Infrastructure Neutral Operator 16