IS THE FUTURE OF WIRELESS WIRED?
FTTX IN SUPPORT OF NOMADIC BROADBAND USERS
Marc Jadoul (@mjadoul)
Stockholm, 18 February 2014

COPYRIGHT © 2014 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
The trend has
been that mobile
was winning.
It's now won.
Eric Schmidt
Executive Chairman, Google

Source: http://mashable.com/2013/12/30/eric-schmidt-predictions-2014
2
COPYRIGHT © 2014 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
MOBILE TRAFFIC KEEPS GROWING,
WITH VIDEO PLAYING AN EVER MORE PROMINENT ROLE
21,500
PB

Other
Games & Apps
Video

5,326
PB

Music
Browsing

2012

2013

2014

2015

2016

Source: Strategy Analytics, Handset Data Traffic (2013)
3
COPYRIGHT © 2014 ALCATEL-LUCENT. ALL RIGHTS RESERVED.

2017
MASLOW’S HIERARCHY REDEFINED

SELFACTUALIZATION
achieving one’s full
potential & creativity

SELF-ESTEEM
prestige & feeling of accomplishment

BELONGINGNESS & LOVE
intimate relationships, friends

SAFETY
security, stability, safety

PSYCHOLOGICAL
food, water, shelter, warmth, …

Source: http://www.simplypsychology.org/maslow.html
4
COPYRIGHT © 2014 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
NEW USAGE PATTERNS CHALLENGE MOBILE NETWORKS

63%
OF USERS SAY
IT’S IMPORTANT
TO BE CONNECTED
AT ALL TIMES

26%
OF 4G USERS CHECK
SOCIAL MEDIA MORE
THAN 10X A DAY

62% 58%
OF USERS SAY
MOBILE DATA
SPEEDS ARE
VERY IMPORTANT

OF USERS SAY ALWAYS-ON
CONNECTIVITY IS
IMPORTANT FOR THEIR
SOCIAL LIVES

25% 26%
OF 4G USERS SPEND 3 OR
MORE HOURS A DAY ON
THE INTERNET EVERY DAY

OF 4G USERS
DOWNLOAD, UPLOAD,
AND STREAM VIDEOS

Sources: Yankee Group US Consumer Survey (2012), 4GEE Mobile Living Index & Orange Exposure (2013)
5
COPYRIGHT © 2014 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
DEMAND FOR (DENSE) WIRELESS ACCESS
IN PUBLIC PLACES IS RISING
Sports stadium
Train/bus station

Airport
Office
Hospital
Shopping mall
Convention center
High street
School
Hotel
Supermarket
Retail shop
Multi Dweller Units
House
0.0

0.1

0.2

0.3

0.4

0.5

0.6

Average Mb/s per 10m2
Source: Ruckus Wireless (2012)
6
COPYRIGHT © 2014 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
EVEN WITHIN THE HOME,
MOBILE MULTIMEDIA IS BECOMING PERVASIVE
100%
90%
80%

% OF USE INDOORS

100%

70%

90%

60%

80%

50%

70%

40%

iPad

iPhone Blackberry

30%
20%
10%
0%
2010

2011

2012

2013

2014

Outdoor mobile data usage

2015

2016

Indoor mobile data usage

Source: Mobile Experts (2012), GigaOM (2012)
7
COPYRIGHT © 2014 ALCATEL-LUCENT. ALL RIGHTS RESERVED.

2017
SMARTPHONES AND TABLETS
TEND TO PLAY DIFFERENT ROLES
Living room

Living room

Library
School
Other

Work
Friend’s
house

67%

20%

22%

Bedroom

53%

34%

58%

Where do you access
the internet on your
SMARTPHONE ?

8%

School
31%

Home
office

Library

68%

65%
Restaurant

51%

74%
75%
In stores

49%

Where do you access
the internet on your
TABLET?

12%

14%

Outdoors

26%

Friend’s
house

Public
trarnsport

26%

Home
office

20%

Car

While
traveling

Kitchen

40%

10%

Other

74%

Bedroom

63%

In stores

Kitchen

Work

60%

Outdoors

72%

65%

48%
28%
18%

30%

Restaurant
Daily
commute

15%
9%

Daily
commute

Source: Forrester Research (2013)
8
COPYRIGHT © 2014 ALCATEL-LUCENT. ALL RIGHTS RESERVED.

While
traveling

Car

Public transport
NEED FOR DIFFERENT ‘MIXES’ OF
MOBILITY, CAPACITY AND COVERAGE

Full mobility

Nomadic usage

Mainly low
bandwidth services

Often high
bandwidth services

Macro coverage

Small cells & Wi-Fi

9
COPYRIGHT © 2014 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
NOMADIC VIDEO IS SOARING WITH A 73% CAGR

200,000

Home video users
(premium content)

180,000
160,000

140,000

Nomadic video users
(premium content)

120,000
100,000
80,000
60,000

Mobile video users
(premium content)

40,000

20,000
0

2010

2011

2012

2013

2014

Source: The NPD Group (US, 2011)
10
COPYRIGHT © 2014 ALCATEL-LUCENT. ALL RIGHTS RESERVED.

2015
NOMADIC BROADBAND ROLLOUT OPPORTUNITIES

11
COPYRIGHT © 2014 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
DEFINING THE IDEAL NETWORK FOR WIRELESS NOMADS

a wireless HetNet mixing 3G/4G
macro cells, small cells and Wi-Fi
automatic network discovery,
selection and authentication,
with seamless handover between
cellular and Wi-Fi access
a high-capacity, fiber-based mobile
backhaul and transport network

12
COPYRIGHT © 2014 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
FIBER+WIRELESS ULTRA-BROADBAND
DEPLOYMENT SCENARIOS

Small Cell Backhaul

Fiber + Copper/Cable
to the Homespot/Enterprise Hotspot

Fiber to the
Streetspot

13
COPYRIGHT © 2014 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
TWDM
PON

CURRENT FTTX TECHNOLOGIES CAN FULFILL
GROWING BACKHAUL CAPACITY NEEDS
Required downstream MBH capacity (Mb/s)

4,000
3,500
3,000

…

(~40 Gb/s)

Highest capacity site (3 collocated operators)
Highest capacity site (1 operator)
Capacity site (1 operator)
Coverage site (1 operator)
Public access small cell (1 operator)

GPON

2,500
2,000
1,500

G.fast

1,000

(vectoring)

500
0
2011

VDSL2

(vectoring)

2012

2013

2014

2015

2016

Sources: Heavy Reading (2013), Alcatel-Lucent — data speeds may depend on loop and noise conditions
14
COPYRIGHT © 2014 ALCATEL-LUCENT. ALL RIGHTS RESERVED.

2017
FTTX TECHNOLOGY FOR MOBILE BACKHAUL
LEADS TO FASTER NETWORK MONETIZATION
MONTHLY COST PER MBPS BY TECHNOLOGY
T1/E1/DS3 copper
Microwave radio
Ethernet copper/fiber

LOWER OPEX

MBH WHOLESALE REVENUES

POWERING
PON

CLOCK SYNC
P2P

VDSL

BANDWIDTH
BONDING

RESIDENTIAL ULTRA-BB UBIQUITOUSLY AVAILABLE
Sources: ABI Research (Western-Europe, 2013), Alcatel-Lucent
15
COPYRIGHT © 2014 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
CONCLUSION: WIRELESS AND WIRELINE ARE
THE YIN AND YANG OF BROADBAND GROWTH

WIRELESS
DEVICES & APPS

WIRELINE
OFFLOAD & BACKHAUL

16
COPYRIGHT © 2014 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
Wireless Nomadicity (FTTH 2014)

Wireless Nomadicity (FTTH 2014)

  • 1.
    IS THE FUTUREOF WIRELESS WIRED? FTTX IN SUPPORT OF NOMADIC BROADBAND USERS Marc Jadoul (@mjadoul) Stockholm, 18 February 2014 COPYRIGHT © 2014 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
  • 2.
    The trend has beenthat mobile was winning. It's now won. Eric Schmidt Executive Chairman, Google Source: http://mashable.com/2013/12/30/eric-schmidt-predictions-2014 2 COPYRIGHT © 2014 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
  • 3.
    MOBILE TRAFFIC KEEPSGROWING, WITH VIDEO PLAYING AN EVER MORE PROMINENT ROLE 21,500 PB Other Games & Apps Video 5,326 PB Music Browsing 2012 2013 2014 2015 2016 Source: Strategy Analytics, Handset Data Traffic (2013) 3 COPYRIGHT © 2014 ALCATEL-LUCENT. ALL RIGHTS RESERVED. 2017
  • 4.
    MASLOW’S HIERARCHY REDEFINED SELFACTUALIZATION achievingone’s full potential & creativity SELF-ESTEEM prestige & feeling of accomplishment BELONGINGNESS & LOVE intimate relationships, friends SAFETY security, stability, safety PSYCHOLOGICAL food, water, shelter, warmth, … Source: http://www.simplypsychology.org/maslow.html 4 COPYRIGHT © 2014 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
  • 5.
    NEW USAGE PATTERNSCHALLENGE MOBILE NETWORKS 63% OF USERS SAY IT’S IMPORTANT TO BE CONNECTED AT ALL TIMES 26% OF 4G USERS CHECK SOCIAL MEDIA MORE THAN 10X A DAY 62% 58% OF USERS SAY MOBILE DATA SPEEDS ARE VERY IMPORTANT OF USERS SAY ALWAYS-ON CONNECTIVITY IS IMPORTANT FOR THEIR SOCIAL LIVES 25% 26% OF 4G USERS SPEND 3 OR MORE HOURS A DAY ON THE INTERNET EVERY DAY OF 4G USERS DOWNLOAD, UPLOAD, AND STREAM VIDEOS Sources: Yankee Group US Consumer Survey (2012), 4GEE Mobile Living Index & Orange Exposure (2013) 5 COPYRIGHT © 2014 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
  • 6.
    DEMAND FOR (DENSE)WIRELESS ACCESS IN PUBLIC PLACES IS RISING Sports stadium Train/bus station Airport Office Hospital Shopping mall Convention center High street School Hotel Supermarket Retail shop Multi Dweller Units House 0.0 0.1 0.2 0.3 0.4 0.5 0.6 Average Mb/s per 10m2 Source: Ruckus Wireless (2012) 6 COPYRIGHT © 2014 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
  • 7.
    EVEN WITHIN THEHOME, MOBILE MULTIMEDIA IS BECOMING PERVASIVE 100% 90% 80% % OF USE INDOORS 100% 70% 90% 60% 80% 50% 70% 40% iPad iPhone Blackberry 30% 20% 10% 0% 2010 2011 2012 2013 2014 Outdoor mobile data usage 2015 2016 Indoor mobile data usage Source: Mobile Experts (2012), GigaOM (2012) 7 COPYRIGHT © 2014 ALCATEL-LUCENT. ALL RIGHTS RESERVED. 2017
  • 8.
    SMARTPHONES AND TABLETS TENDTO PLAY DIFFERENT ROLES Living room Living room Library School Other Work Friend’s house 67% 20% 22% Bedroom 53% 34% 58% Where do you access the internet on your SMARTPHONE ? 8% School 31% Home office Library 68% 65% Restaurant 51% 74% 75% In stores 49% Where do you access the internet on your TABLET? 12% 14% Outdoors 26% Friend’s house Public trarnsport 26% Home office 20% Car While traveling Kitchen 40% 10% Other 74% Bedroom 63% In stores Kitchen Work 60% Outdoors 72% 65% 48% 28% 18% 30% Restaurant Daily commute 15% 9% Daily commute Source: Forrester Research (2013) 8 COPYRIGHT © 2014 ALCATEL-LUCENT. ALL RIGHTS RESERVED. While traveling Car Public transport
  • 9.
    NEED FOR DIFFERENT‘MIXES’ OF MOBILITY, CAPACITY AND COVERAGE Full mobility Nomadic usage Mainly low bandwidth services Often high bandwidth services Macro coverage Small cells & Wi-Fi 9 COPYRIGHT © 2014 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
  • 10.
    NOMADIC VIDEO ISSOARING WITH A 73% CAGR 200,000 Home video users (premium content) 180,000 160,000 140,000 Nomadic video users (premium content) 120,000 100,000 80,000 60,000 Mobile video users (premium content) 40,000 20,000 0 2010 2011 2012 2013 2014 Source: The NPD Group (US, 2011) 10 COPYRIGHT © 2014 ALCATEL-LUCENT. ALL RIGHTS RESERVED. 2015
  • 11.
    NOMADIC BROADBAND ROLLOUTOPPORTUNITIES 11 COPYRIGHT © 2014 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
  • 12.
    DEFINING THE IDEALNETWORK FOR WIRELESS NOMADS a wireless HetNet mixing 3G/4G macro cells, small cells and Wi-Fi automatic network discovery, selection and authentication, with seamless handover between cellular and Wi-Fi access a high-capacity, fiber-based mobile backhaul and transport network 12 COPYRIGHT © 2014 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
  • 13.
    FIBER+WIRELESS ULTRA-BROADBAND DEPLOYMENT SCENARIOS SmallCell Backhaul Fiber + Copper/Cable to the Homespot/Enterprise Hotspot Fiber to the Streetspot 13 COPYRIGHT © 2014 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
  • 14.
    TWDM PON CURRENT FTTX TECHNOLOGIESCAN FULFILL GROWING BACKHAUL CAPACITY NEEDS Required downstream MBH capacity (Mb/s) 4,000 3,500 3,000 … (~40 Gb/s) Highest capacity site (3 collocated operators) Highest capacity site (1 operator) Capacity site (1 operator) Coverage site (1 operator) Public access small cell (1 operator) GPON 2,500 2,000 1,500 G.fast 1,000 (vectoring) 500 0 2011 VDSL2 (vectoring) 2012 2013 2014 2015 2016 Sources: Heavy Reading (2013), Alcatel-Lucent — data speeds may depend on loop and noise conditions 14 COPYRIGHT © 2014 ALCATEL-LUCENT. ALL RIGHTS RESERVED. 2017
  • 15.
    FTTX TECHNOLOGY FORMOBILE BACKHAUL LEADS TO FASTER NETWORK MONETIZATION MONTHLY COST PER MBPS BY TECHNOLOGY T1/E1/DS3 copper Microwave radio Ethernet copper/fiber LOWER OPEX MBH WHOLESALE REVENUES POWERING PON CLOCK SYNC P2P VDSL BANDWIDTH BONDING RESIDENTIAL ULTRA-BB UBIQUITOUSLY AVAILABLE Sources: ABI Research (Western-Europe, 2013), Alcatel-Lucent 15 COPYRIGHT © 2014 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
  • 16.
    CONCLUSION: WIRELESS ANDWIRELINE ARE THE YIN AND YANG OF BROADBAND GROWTH WIRELESS DEVICES & APPS WIRELINE OFFLOAD & BACKHAUL 16 COPYRIGHT © 2014 ALCATEL-LUCENT. ALL RIGHTS RESERVED.