"ICT in Lebanon: Towards a Brighter Future" A conference at the Order of Engineers & Architects - Beirut - Lebanon December 4,5 & 6 - 2018

1. Building a Future Proof Access
Network – FTTx Rollout
Order of Engineers Presentation
December 2018

2. Today, the Current access network is facing several challenges
Current Challenges
In-building in greenfield &
brownfield
 Missing guidelines for in-
building infrastructures in
greenfield & brownfield
buildings
Copper infrastructure
 Old infrastructure constraining
service quality - Most of it
dates back to the mid-to-
end1990s
 Long distances between COs
and customers
Remote areas/ white areas
 Connectivity is missing in
some areas – with
MoT/Ogero’s access network
Tariff structure
 Lack of affordable residential
NGA offers
 Missing targeted offers for
specific enterprise segments
 Limited NGA wholesale
portfolio

3. The maximum attainable speeds by end users is constrained by the
long copper distances from the COs
Impact of Copper Distance on Speed Number of DPs
(‘000)
Technical Challenges
Local LoopCentral Office Private Domain
Building
11
2-3<1 1-2
2
3-4
65
71
4-5 >5
35
6
DP
~40% of end users are less
than 2 Km away from the CO
FTTx infrastructure will improve the quality of connectivity (i.e. higher speed, lower latency)
Distance from exchanger (km)
Distance from exchanger (km)
Connectionspeed(Mbps)
0 300 600 900 1200 1500 1800 2100 2500 3000 3500
0
10
20
30
40
50
60
70
80
90
100
VDSL 2
VDSL
ADSL 2+
ADSL 2
0
20
40
60
80
100
%ofDPsbelowdistancex

4. FTTx technology split for nation wide deployment in Lebanon was
chosen to be FTTC (fiber to the cabinet) and FTTH (fiber to the home)
FTTx Technology – Illustration of FTTC and FTTH
FTTx Project – FTTC/FTTH
Average distance
FTTC
FTTH
Copper
Infrastructure
~2 Km
~500
m
Access Network
Copper
Copper
Copper
Fiber
Fiber Fiber
FTTC and FTTH enable NGA
speeds (50 Mbps guaranteed)
FTTH can yield higher speed
up to 10Gb/Sec Symmetrical
FTTH and FTTC has different
costs and implementation time

5. The technological split between FTTC and FTTH was identified
based on three decision drivers
FTTx Project – Technology Split
Fiber is where… Decision tools
Supply / Demand matrix
Final decision per CO
1+2
ROI per exchange2+3
… copper is not viable
1
… fiber is less expensive
3
… there is higher bandwidth demand
2
Supply-side drivers
Demand-side drivers
Supply + ROI

6. FTTx deployment plan has been defined and the nation wide fiber
rollout will be completed in three years
Deployment pace targeted at connecting >10% subscribers each
quarter
By mid 2019 : ~373,00 or 46% subscribers will have 50-100 Mb/s
speed
FTTx Project – Deployment Plan
Phase 1 – Connected by Fiber by mid 2019
Phase 2 – Connected by Fiber by end 2019
Phase 3 – Connected by Fiber by mid/end 2021
285 Central Offices

7. In FTTH areas, in building rollout is needed to reach the customer
In-building Rollout (for FTTH)
FTTx Project – In-building Solution
Rollout the vertical and horizontal
segments up to the flat for all HHs
Mass rollout -
full
Rollout only the vertical drop for all
households
Mass rollout - partial
HH4
HH5
HH6
HH1
HH2
HH3
Rollout the vertical & horizontal
segments for existing customers on
demand
Customer based rollout
Recommended option

8. In non-wired areas, LTE-A sites are being used to connect the end users
LTE-A in Non-Wired Areas
LTE in Remote Areas
Source: Ogero website
LTE-A deployment map is available on the Ogero
website
LTE-A deployment map (2018)
The access network does not reach several
areas in Lebanon – these areas are being
connected via LTE
18 non-wired areas have
been connected
71 sites have been installed
So far…

9. Aside from the technical aspects, the current commercial portfolios
present several challenges
Current Commercial Challenges
Commercial Challenges
 Lack of affordable
residential NGA offers–
base NGA offer is at 50
USD vis-à-vis 16 USD
base ADSL offer
 Missing targeted offers
for specific enterprise
segments – no
basic/business
broadband offers
 Limited NGA wholesale
portfolio
Residential Enterprise Wholesale

10. Affordability –
Maintain
reasonable
prices in the
market
Quality – Atleast
50 Mbps per
Household
Cost Recovery –
Reasonable pay
back period
Affordability
High-Quality
Broadband
Financial
Impact
Competition
Competition –
Maintain
replicability of
services by ISPs
and DSPs
Commercial Portfolio – Key Highlights
Consequently, the residential, enterprise and wholesale portfolios are
being revamped taking into account the main objectives of the project
AQ F C

11. Finally, the impact of FTTx project goes beyond the sector and
contributes to the GDP and to the creation of new jobs at a national level
Impact of Broadband
Fiber Deployment Impact
80New Jobs
for every
1,000New broadband users3
0.3%To
GDP1
Broadband speed
increase
$150 p.m2 increase
in household
income
10%
Increase in broadband
penetration rates
1%Increase in
GDP1
2x National broadband speed
4 - 24 mbps
The Lebanese GDB is estimated for 52 Billion USD  The increase is about 520 Million USD

12. THANK YOU!