. FTTh network design (centralized/decentralized architecture, ...) serving multi-Services Providers 2. Fiber cables distribution and duct Capacities canlculation 3. SLA for infrastructure sharing 4. New telecom business model: single Fixed Mobile network owner wholesaler of white labeling services to retailers in fixed (FVNO) and mobile (MVNO) 5. Regulatory aspects

1. The 4th InternationalConference on Communication &
Computer Engineering
18-20 Apr 2017, Penang , Malaysia
ICOCOE 2017
Open Access Network (OAN) & Fixed
Mobile Convergence (FMC):
Foundation for a Competitive New
Business Model
Dr. Hedi A. Hmida
Senior Consultant BB Network
hhmida@hotmail.com

2. Agenda
ICOCOE 2017
Penang , Malaysia
4
5
Introduction
Conclusion
FMC
OAN Models
1.
2.2
3
1
6
Fixed-Mobile Network Architecture
New Telecom Business Model
Regulatory Aspects
7
2

3. Agenda
ICOCOE 2017
Penang , Malaysia
4
5
Introduction
Conclusion
FMC
OAN Models
1.
2.2
3
1
6
Fixed-Mobile Network Architecture
New Telecom Business Model
Regulatory Aspects
7
3

4. ICOCOE 2017
Penang , Malaysia1. Introduction (1/4)
4
The ITU Broadband Commission recommendations with the 2012 UN Conference on sustainable
Development (Rio+20):
1. recognized the potential of broadband as a key factor contributing to the evolution
towards knowledge-based sustainable economies and improved social welfare enabling
the delivery of specialized services: e-commerce, e-government, telecommuting,
telemedicine, e-health,...
2. called for bridging the digital divide globally.
Several developed countries (eg., USA, Sweden, Australia, Korea, Singapore, and Japan,…)
started building their broadband infrastructure in cooperation with licensed operators and utilities
in order to provide internet access at affordable prices to their citizens in urban and rural
areas, reducing the “digital gap” in their society.
Telecom regulators intervene to attempt to balance the situation for the benefit of
disadvantaged households, by providing financial incentives to operators who agree to provide
broadband services similar to those in the prioritized areas.
FTTH is a future-proof fixed access technology that supports high bandwidth applications ,
however its deployment requires heavy capital investments with a long payback period.

5. ICOCOE 2017
Penang , Malaysia
Global Revenue per service type
Source: OVUM
SubstantialGrowth in revenue driven by the growth in #
of connections
Decline in Fixed voice, MobileVoice, and Mobile SMS
Global Revenue per service vs # of connections
Global Revenue forecast to decline drastically in the next decade, …
1. Introduction (2/4)
5

6. ICOCOE 2017
Penang , Malaysia
• Innovative Services
• Smart CapEx
• Reduce OpEx
• OTT
• Competition
• Regulator pressure on CSP
to reduce services prices
• Fees/Taxes (spectrum,
corridors,…)
1. Introduction (3/4)
…driven by pressures from OTT services, competition, and Regulatory decisions
CSP Revenue
• Traditional services
• High CapEx
• High Opex
• OTT
• Competition
• Regulator pressure on CSP
to reduce services prices
• Fees/Taxes (spectrum,
corridors,…)
Current
Target
OAN
FMC
Share CapEx and OpEx with
existing licensed operators
6

7. ICOCOE 2017
Penang , Malaysia
OAN
Organization Structure
Design Mechanism
FMC
New Business
Model
The aim of the paper is to show that OAN & FMC are the foundation for a competitive new
business model in the next decade?
OAN:
Passive/active Fixed Mobile Network
infrastructure sharing
FMC:
Network infrastructure resources
sharing for Fixed and Mobile
1. Introduction (4/4)
7

8. Agenda
ICOCOE 2017
Penang , Malaysia
4
5
Introduction
Conclusion
FMC
OAN Models
1.
2.2
3
1
6
Fixed-Mobile Network Architecture
New Telecom Business Model
Regulatory Aspects
7
8

9. ICOCOE 2017
Penang , Malaysia
9
In a given country we usually have as many networks (overlaid) as we haveTelecom operators
2. Fixed-Mobile Network Architecture
Fixed NB/ BB:
xPON:
GPON (2.5/1.25)
10G PON (10/2.5)
XGS PON (10/10)
NG PON2 (40/40)
ADSL2+,VDSL2
VDLS2 Vect, Gfast
SDH/
DWDM
Core/Edge
xDSL
ADMADM
INTERNET
IP- Core
Cloud/Virtualized
Servers/IPTV/OSS/BSS
NFV/SDN Controller
Mobile IP
Core
Access Mobile
Networks
4G
5G
2G/3G
Enterprise
PE PE
PE
P
P
P
P
Mobile Backhauling
Residential
DWDM
BRAS
IMSHLR/HSS
2/3G
INTERNET
Access
4G (EPC)
KSA : 5 operators (+2 MVNOs)  5 infrastructures
Fixed Mobile Network
HLR/HSS : Home Location Register/ Home Subscriber Server, DWDM: Dense Wavelength-Division Multiplexing, SDH: Synchronous Digital Hierarchy

10. Agenda
ICOCOE 2017
Penang , Malaysia
4
5
Introduction
Conclusion
FMC
OAN Models
1.
2.2
3
1
6
Fixed-Mobile Network Architecture
New Telecom Business Model
Regulatory Aspects
7
10

11. ICOCOE 2017
Penang , Malaysia
3. OAN Models (1/4)
Sharing
• Ducts/sub-ducts
• Fibers connectivity
• Colocation
Sharing
• OSP
• Active equipment
• Colocation
Sharing
• Access and Core
network elements
• Colocation
Network infrastructure sharing can be at the OSP/ and or ISP, at the Access and or Core Network:
11

12. ICOCOE 2017
Penang , Malaysia
Np= 𝑭 𝒖 (
𝑷𝑶𝑵 𝒃𝒘 𝑭 𝒄
𝑪 𝒃 𝑴 𝒔𝒑
)
FU = % of fiber strands dedicated to
PMP connections,
PONbw: 2.5 GB or 10 GB PON,
Fc: Fiber count (288, 144…),
Cb: assigned bandwidth per user
(e.g.; 100Mbps...),
MSP: number of Service Providers.
For MSP=2,
Fc=288F will ensure 2400 connections
and 1680 if m=3.
The proposed design reserves part of the feeder cable (FU~2/3) to PMP connections and 1/3spare fibers for P2P
connections and maintenance requirements.
The # of premises that can be
connected by a feeder cable is:
Fiber Mapping from CO to customer premises using 12 fiber cable drops laid from serving MH (SMH) to maximum 4 HH, 2 fibers
active and 1 spare, and 2x1:32 splitters serving 25 customers (1 SMH serves totally 200 customers).
OAN Models (2/4)
12
Layer 1 Decentralized PON Architecture

13. ICOCOE 2017
Penang , Malaysia
OAN Models (3/4)
𝑭 𝒄 =
𝟏
𝑹
𝑭𝑫𝑻 𝒄
𝑵𝑺 𝒐𝒖𝒕
𝑵 𝒐𝒑
𝑵 𝒂𝒇 + 𝑵 𝒔𝒇 (2)
The below formula gives the feeder
fiber cable count according to the
number of Operators and FDT capacity:
Fc: feeder fiber count,
R= 1/M (where M=2, 3, 4…) ratio of spare
fiber count in the feeder,
FDTc: the FDT capacity,
NSout: Number of splits per splitter,
Nop: number of operators to serve,
Naf: number of active fibers (Naf=Nop),
Nsf: number of spare fibers.
(Example FC= 48F for R=1/2, FDTc=512,
NSout=32, Nop=2, Naf=2 and Nsf=1.
13
Layer 1 Centralized PON Architecture

14. ICOCOE 2017
Penang , MalaysiaOAN Models (4/4)
A. Data Link (Layer 2)
B. Network Layer (Layer 3)
The SPs will have access directly to
the OLT at the CO
- Colocation services required
The SPs will have access to the
OLT remotely via IPMPLS core
network
VLANs assigned to each service provider to carryVoIP, IPTV, and Internet
All service providers are sharing a single ISP/OSP infrastructure (Layers1,2, and 3), at the expense of
higher bandwidth capacity at the edge and core network.
14
Layer 2 & 3

15. Agenda
ICOCOE 2017
Penang , Malaysia
4
5
Introduction
Conclusion
Regulatory Aspects
OAN Models
1.
2.2
3
1
6
Fixed-Mobile Network Architecture
New Telecom Business Model
FMC
7
15

16. ICOCOE 2017
Penang , Malaysia4. Regulatory Aspects
1. Define adequate services pricing policy (for
wholesale and retail services),
2. Adoption of network service exclusivity principle
(Overbuild not allowed for 5-10 years) in area
assigned to any operator for OAN deployment
3. Encourage investments through incentive and
subsidy to the operators (i.e.: exemption from
government fees on broadband services,
creation of broadband fund “BBF” similar to the
one in rural areas for universal services,…)
4. Adopt force migration of customers from legacy
to NGN technology in any area upgraded from
copper to fiber services.
5. Find new mechanisms that prevent end-users
from abusing in the use of broadband services
(unlimited mobile broadband service)
6. Harmonize the spectrum locally and regionally,
The main actions and concessions required from the regulator to drive this result are:
6. Re-farm the 2G and 3G frequencies for efficient
usage in 4G and coming 5G.
7. Evacuation and allocation of digital dividend
frequencies for rural coverage (700, 800MHz).
8. Establish a fair rollout projects assignment
process (i.e.: award projects by reverse auction,
first come first served, and commitment on
earliest rollout…)
9. Automation of the work Permit process to speed
up issuance of permits, and to improve the
deployment delay,
10. Improve local rules constraints for right of way of
streets, totally/or partially buried or areal
infrastructure issues, and also the width of
available telecom corridor.
16

17. Agenda
ICOCOE 2017
Penang , Malaysia
4
5
Introduction
Conclusion
FMC
OAN Models
1.
2.2
3
1
6
Fixed-Mobile Network Architecture
New Telecom Business Model
Regulatory Aspects
7
17

18. ICOCOE 2017
Penang , Malaysia5. FMC
18HLR/HSS : Home Location Register/ Home Subscriber Server, DWDM: Dense Wavelength-Division Multiplexing, SDH: Synchronous Digital Hierarchy
Core/Edge
INTERNET
IP- Core
Cloud/Virtualized
Servers/IPTV/OSS/BSS
NFV/SDN Controller
INTERNE
T
Core/Edge
IP- Core
Cloud/Virtualized
Servers/IPTV/OSS/BSS
NFV/SDN Controller
Mobile IP
Core
PE PE
PE
P
P
P
P
DWDM
BRAS
IMSHLR/HSS
2/3G
INTERNE
T
4G (EPC)
Fixed Mobile Network Traditional Architecture
PE PE
PE
P
P
P
P
DWDM
BRAS
2/3G 4G (EPC)
Fixed Mobile Convergence Architecture
INTERNET
A single network for both fixed and mobile services will reduce the CapEx and OpEx
18

19. Agenda
ICOCOE 2017
Penang , Malaysia
4
5
Introduction
Conclusion
FMC
OAN Models
1.
2.2
3
1
6
Fixed-Mobile Network Architecture
New Telecom Business Model
Regulatory Aspects
7
19

20. ICOCOE 2017
Penang , Malaysia
Fixed
Mobile
Users
OP/SP1
OP/SP2
OP/SP n
Fixed
Mobile
Users
SP/Retailers
1
2
M
OP
“NetCo”
Wholesaler
Multiple traditional Networks Single Network (FMC) and OAN
OP/SP: NetworkOperator/ Service Provider
End usersEnd users
The fixed Mobile Convergence solution integrating all licensed Operators under a single umbrella “NetCo” in
charge to build, operate the whole network using combined resources initially used by existing operators
individually.
Build, Operate and Provide service
Build, and Operate
Provide Service
6. New Telecom Business Model (1/2)
20
Current
Target
Retailers= F/MVNO

21. ICOCOE 2017
Penang , Malaysia
OAN
Organization Structure
Design Mechanism
• Technology: NW Planning, Design, O&M, IT
• Regulatory,
• BUs (Consumer, Enterprise, Wholesale…)
• Finance
FMC
New Business
Models
1.Multi-Operators / Multi retailers
Fixed, Mobile, or both Fixed & Mobile
2.Single Fixed mobile Operator
with Multi Retailers (FVNO,
MVNO, FMVNO)
OAN & FMC are a foundation for a competitive new business model
21
6. New Telecom Business Model (2/2)

22. Agenda
ICOCOE 2017
Penang , Malaysia
4
5
Introduction
Conclusion
FMC
OAN Models
1.
2.2
3
1
6
Fixed-Mobile Network Architecture
New Telecom Business Model
Regulatory Aspects
7
22

23. ICOCOE 2017
Penang , Malaysia7. Conclusion
Different OAN architecture have been proposed, available to network planning and design engineers:
1. Layer 1 for Multiple-SPs centralized, and decentralized architecture solutions with formulas for
estimating the cable coverage capacity and fiber feeder cables size.
2. Layer 1 & 2 - OLT to ONT shared between SPs (Wholesale at the bit stream).
3. Layer 3 - SPs are retailers only, resellers of broadband services “White labeled products”.
4. The last option - Fixed Mobile Convergence solution integrating all licensed Operator under a single
umbrella “NetCo” in charge to build, operate the whole network using combined resources initially used
by existing operators individually and
5. Retailers are Fixed/Mobile Virtual Network (F/MVNO) competing on service differentiation and prices.
6. Numbers Portability (when changing from one F/M retailer to another)
7. Recommendations on regulatory aspects are provided, to assist operators in negotiating (lobbying)
with the regulator, the conditions for the application of OAN/(infrastructure sharing).
23

25. ICOCOE 2017
Penang , Malaysia
Telecom Revenues Forecast
Total Fixed voice service revenues are expected to
decline at aCAGR1 of -5.4% between 2015-2021
1.The compound annual growth rate (CAGR) is a useful measure of growth over multiple time periods.
On a global basis ,Telecom Revenues are expected to decline year on year…
Total Fixed voice connections revenues are expected to
decline at aCAGRof -2.9% driven by fixed mobile
substitution
Total Fixed broadband subscription forecast reflects a marginal
increase driven by new deployments in MENA & SEAsia regions
Total Fixed broadband service revenues forecast is driven by
the subscription growth.
Source: OVUM
25