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Amsterdam and FttH

    some preconditions
       to a greener city


        Amsterdam, September 2008
               Dirk van der Woude
                City of Amsterdam
             dirkvanderwoude@gmail.com
2




Introduction
OGA: Amsterdam Municipal Development Corporation
  – development of large and small scale real estate
  – Administrator for the municipal held lands: 80% at a market value
    65.000.000.000 euro

One of the projects is the overall vision and direction of
the city's broadband programs, that aim at increasing the
value of the city and its real estate.

As well as reaping the lateral benefits of ubiquitous
symmetric broadband.

Nevertheless, I am from the government…
3




Government & broadband: incompatible?
“Only government can take perfectly good paper, cover it
with perfectly good ink and make the combination
worthless.”
“If you put the federal government in charge of the
Sahara Desert, in 5 years there'd be a shortage of sand.”
Government should stay away from telecom
                                          Milton Friedman

However, government may have some use to reach
specific goals – like the roll out of basic infrastructure

And, by the way, talking about the use of government...
4




      A city and its interventions…

100% government
5




4th in Europe – related to 40,000 jobs
start: around AD 1250 – 100% muni
6




4th in Europe – related to 70,000 jobs
start: AD 1920 - 22% muni 78% national
7




1st in the world – related to 50,000 jobs
start: AD 1997 – 100% not for profit




                               Source: Henk Steenman, 2007
8




Some rethink going on the USA?
9
10




Now that we’re past ideological bickering…

 Next generation broadband is important for Green IT as
 well as IT that helps greening our cities.

However, with what networks?
11




Dutch Scientific Council for
Government Policy (June 11, 2008)
 quot;The Council is very concerned about the quality of
 Dutch infrastructures [like for energy, telecom, water,
 etc.] in the long term. The attention devoted by
 administrators and market players to short-term effects
 geared towards efficiency, consumer interest and cost,
 has a detrimental effect on investment in the public
 interest in the long term.quot;

 Report by Ms Prof Mr Leigh Hancher (192 pp)
 http://www.wrr.nl/english/content.jsp?objectid=4460
12




UPC Broadband and Cisco Drive
Broadband Speeds to 120 Mbps and
Beyond in Amsterdam
 AMSTERDAM, Netherlands, September 10, 2007 -
 Cisco® and UPC Broadband have broken a new
 broadband over cable speed record of 120 megabits per
 second (Mbps) in consumer homes on UPC's cable
 network in Amsterdam. Achieving these fibre-speeds
 over coax represents Europe's first deployment of
 EuroDocsis 3.0 (ED 3.0) and M-CMTS technology in an
 existing cable network.
13




               To 100% of homes, parallel?

                                         <= promise: “120 Mb/s over coax…”




…real world: shared bandwidth =>
                   (Xiamen, Jan. 2007)
14




To what % of homes? FttC/ VDSL2…




 Houston, TX,
 The Nov. 2006 ‘DBlam’
                         http://www.lightreading.com/document.asp?doc_id=93103&page_number=4
15




                   Fiber to the Home, 1 Gb/s or more
                          40,000 adresses now – later 450,000


                                                                consumer/
   Service providers                                               SME
    100% market


  Wholesale operator                                    Rent
  sells open access
    100% market


Passive infrastructure:                                 Rent
      GNA CV
33% municipal shares
20% municipal euro’s
16




Symmetric broadband helps to green IT
 Like data processing where the sustainable energy is
  – Hello Iceland, there’s life beyond fishing

 Like cloud computing
  – Newest barebones use 7 W/h…
  – However: what speeds & latencies will we need to have seemless
    computing experiences? USB 2.0 is already 480 Mb/s…
  – World Wide Wait 2.0? No thanks!


 Like green data centers
  – Again: what symm speeds are needed to really reap the advantage of
    professional centralized & virtualized computing?


 Etc: see Bill & Anwar’s presentations
17




This is what we want, at home as well…
18




Seoul        Madrid     San Francisco
20/20 Mb     20/20 Mb   20/20 Mb




           Amsterdam
            20/20 Mb
19




Symmetric broadband helps IT to a
greener society
 Substitution
  – Telecommuting & SWC
  – Teleconferencing
  – Digitized vs. physical products (incl. localized fabbing?)
  – Telecomputing (SaaS 2.0: PC as a Service)
  – Etc.


 Ubiquity
  – A fast fixed network is a precondition of fast wireless ones, in home as
    well in the street


 However: first one deploys the network, than one reaps
 the material and immaterial profits…
20




So: what preconditions?
 Open access
  – FttH is a natural monopoly. Like an energy distribution network.

 Symmetry
  – Good video demands 4 to 6 Mb both ways
  – Helps to break through Managers’ fears of being left alone ;-)

 Scalability
  – 100% of homes vs small % of homes
  – Would you dream of having your bathroom overbooked?
    Why then your data connection?

 Sustainability
  – Low energy use

 Futurability
  – Cheap and ensured upgrade path
21




‘Predatory’ Network Architecture

 PON (or HFC cable) Architecture & Topology
  – NB: that’s not the same as PON Technique!


 Many small POP’s
  – backhaul Capex, granularity inefficiency


 Topology: splitters deep in network
  – lock in 32 neighbors to 1 operator


 Exclusive TV-channel distribution
  – “You can only get exclusive coffee if you buy milk and bread here as
    well”
‘Open’ Home Run (point to point) network

                                    Citynet: more than 13.000
                                    fibers per POP




 POP: local switch house


Cross-connect in POP to
technology
- With or without splitters

- Per home selectable

- CPE Capex: low!
Cable/VDSL ‘Predatory’ Architecture
Passive infra   Technology   Services   Consumer




                                          €
Open Citynet: High option value
Passive infra   Technology   Services   Consumer




                                          €
Facility based competition “2.0”

   Active
   Ethernet                          Citynet: more than 13.000
                                     fibers per POP


   GPON

                    1 : 32 optical
                    split in POP
   Future



POP: local switch house
26




Conclusions
 Green IT sounds like work and it smells of sweat
  – First you dig…

 Technical decisions are not neutral in their effects
  – Choose carefully or regret for decades
  – Primarily distribution or a powerfull change agent

 Amsterdam’s position: we want an option rich network
  – Future proof
  – Open and universally deployed
  – Stimulating competition
  – In other words: an option rich point to point architecture


 PPP seems a splendid way to bring the aims together
  – With government there where we ‘re best at: basic infrastructure
  – And ensuring open acccess and (real ;-) competition
27

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Amsterdam's Vision for FttH and a Greener City

  • 1. Amsterdam and FttH some preconditions to a greener city Amsterdam, September 2008 Dirk van der Woude City of Amsterdam dirkvanderwoude@gmail.com
  • 2. 2 Introduction OGA: Amsterdam Municipal Development Corporation – development of large and small scale real estate – Administrator for the municipal held lands: 80% at a market value 65.000.000.000 euro One of the projects is the overall vision and direction of the city's broadband programs, that aim at increasing the value of the city and its real estate. As well as reaping the lateral benefits of ubiquitous symmetric broadband. Nevertheless, I am from the government…
  • 3. 3 Government & broadband: incompatible? “Only government can take perfectly good paper, cover it with perfectly good ink and make the combination worthless.” “If you put the federal government in charge of the Sahara Desert, in 5 years there'd be a shortage of sand.” Government should stay away from telecom Milton Friedman However, government may have some use to reach specific goals – like the roll out of basic infrastructure And, by the way, talking about the use of government...
  • 4. 4 A city and its interventions… 100% government
  • 5. 5 4th in Europe – related to 40,000 jobs start: around AD 1250 – 100% muni
  • 6. 6 4th in Europe – related to 70,000 jobs start: AD 1920 - 22% muni 78% national
  • 7. 7 1st in the world – related to 50,000 jobs start: AD 1997 – 100% not for profit Source: Henk Steenman, 2007
  • 8. 8 Some rethink going on the USA?
  • 9. 9
  • 10. 10 Now that we’re past ideological bickering… Next generation broadband is important for Green IT as well as IT that helps greening our cities. However, with what networks?
  • 11. 11 Dutch Scientific Council for Government Policy (June 11, 2008) quot;The Council is very concerned about the quality of Dutch infrastructures [like for energy, telecom, water, etc.] in the long term. The attention devoted by administrators and market players to short-term effects geared towards efficiency, consumer interest and cost, has a detrimental effect on investment in the public interest in the long term.quot; Report by Ms Prof Mr Leigh Hancher (192 pp) http://www.wrr.nl/english/content.jsp?objectid=4460
  • 12. 12 UPC Broadband and Cisco Drive Broadband Speeds to 120 Mbps and Beyond in Amsterdam AMSTERDAM, Netherlands, September 10, 2007 - Cisco® and UPC Broadband have broken a new broadband over cable speed record of 120 megabits per second (Mbps) in consumer homes on UPC's cable network in Amsterdam. Achieving these fibre-speeds over coax represents Europe's first deployment of EuroDocsis 3.0 (ED 3.0) and M-CMTS technology in an existing cable network.
  • 13. 13 To 100% of homes, parallel? <= promise: “120 Mb/s over coax…” …real world: shared bandwidth => (Xiamen, Jan. 2007)
  • 14. 14 To what % of homes? FttC/ VDSL2… Houston, TX, The Nov. 2006 ‘DBlam’ http://www.lightreading.com/document.asp?doc_id=93103&page_number=4
  • 15. 15 Fiber to the Home, 1 Gb/s or more 40,000 adresses now – later 450,000 consumer/ Service providers SME 100% market Wholesale operator Rent sells open access 100% market Passive infrastructure: Rent GNA CV 33% municipal shares 20% municipal euro’s
  • 16. 16 Symmetric broadband helps to green IT Like data processing where the sustainable energy is – Hello Iceland, there’s life beyond fishing Like cloud computing – Newest barebones use 7 W/h… – However: what speeds & latencies will we need to have seemless computing experiences? USB 2.0 is already 480 Mb/s… – World Wide Wait 2.0? No thanks! Like green data centers – Again: what symm speeds are needed to really reap the advantage of professional centralized & virtualized computing? Etc: see Bill & Anwar’s presentations
  • 17. 17 This is what we want, at home as well…
  • 18. 18 Seoul Madrid San Francisco 20/20 Mb 20/20 Mb 20/20 Mb Amsterdam 20/20 Mb
  • 19. 19 Symmetric broadband helps IT to a greener society Substitution – Telecommuting & SWC – Teleconferencing – Digitized vs. physical products (incl. localized fabbing?) – Telecomputing (SaaS 2.0: PC as a Service) – Etc. Ubiquity – A fast fixed network is a precondition of fast wireless ones, in home as well in the street However: first one deploys the network, than one reaps the material and immaterial profits…
  • 20. 20 So: what preconditions? Open access – FttH is a natural monopoly. Like an energy distribution network. Symmetry – Good video demands 4 to 6 Mb both ways – Helps to break through Managers’ fears of being left alone ;-) Scalability – 100% of homes vs small % of homes – Would you dream of having your bathroom overbooked? Why then your data connection? Sustainability – Low energy use Futurability – Cheap and ensured upgrade path
  • 21. 21 ‘Predatory’ Network Architecture PON (or HFC cable) Architecture & Topology – NB: that’s not the same as PON Technique! Many small POP’s – backhaul Capex, granularity inefficiency Topology: splitters deep in network – lock in 32 neighbors to 1 operator Exclusive TV-channel distribution – “You can only get exclusive coffee if you buy milk and bread here as well”
  • 22. ‘Open’ Home Run (point to point) network Citynet: more than 13.000 fibers per POP POP: local switch house Cross-connect in POP to technology - With or without splitters - Per home selectable - CPE Capex: low!
  • 23. Cable/VDSL ‘Predatory’ Architecture Passive infra Technology Services Consumer €
  • 24. Open Citynet: High option value Passive infra Technology Services Consumer €
  • 25. Facility based competition “2.0” Active Ethernet Citynet: more than 13.000 fibers per POP GPON 1 : 32 optical split in POP Future POP: local switch house
  • 26. 26 Conclusions Green IT sounds like work and it smells of sweat – First you dig… Technical decisions are not neutral in their effects – Choose carefully or regret for decades – Primarily distribution or a powerfull change agent Amsterdam’s position: we want an option rich network – Future proof – Open and universally deployed – Stimulating competition – In other words: an option rich point to point architecture PPP seems a splendid way to bring the aims together – With government there where we ‘re best at: basic infrastructure – And ensuring open acccess and (real ;-) competition
  • 27. 27