Broadband Access Prospects and City-scale FTTH Project in Korea

Apr. 11, 2008

Byung Tak Lee Optical Communication Research Center

정보통신부

I

Broadband Access Vision

II

III

National FTTH Prospects

City-scale FTTH Project

1

I-1. u-Korea Vision

u-Korea

All objects with embedded electronic devices are to be connected by a network by which people enjoy IT freely at anytime and anywhere

Paradigm change Information Society

On-line Internet Prevailing

Knowledge Society

Convergence Service Integration

Intelligence Society

Ubiquitous Human & Objects integration

’98 ~ ‘02

’03

’04

’07

’08 ~ ’10

Cyber Korea

e-Korea

Broadband IT Korea (BcN)

u-Korea (BcN, USN)

2

I-2. u-Korea Strategy HSDPA/W-CDMA WiBro Broadband Convergence Service DMB/DTV service u-Home service Telematics /LBS service

Mobile/telematic equipment

RFID/USN service IT service

RFID/USN device

Broadband Homenetwork Digital TV/Broadcast equipment Next PC/Peripherals Robort IT SoC/conv.device Embeded SW Digital content /SW solution

8 Services

9 Products 3 Infras Broadband Convergence NW (IPv6) u- sense Network(USN) Soft infraware

(Source : MIC, Feb. 2006) 3

I-3. Broadband Access Goal To provide seamless, broadband, integrated multimedia services anytime, anywhere Wired (50~100 Mbps) 10 million, Wireless (>1 Mbps) 10 million subscribers by 2010 in Korea

Broadband Access Plan 2004yr

2005yr

(unit : Thousand, date : 2007.7)

2006yr

2007yr

2008yr

2009yr

2010yr

wired

860

2,560

4,000

5,700

7,200

9,000

10,000

wireless

460

560

1,000

2,500

4,000

7,100

10,000

Total

1,320

3,120

5,000

8,200

11,200

16,100

20,000

Status

1,320

3,120

5,500

8,904

-

-

-

(Source : MIC, Jul. 2007) 4

I

Broadband Access Vision

II

III

National FTTH Prospects

City-scale FTTH Project

5

II-1. Broadband Subscribers - Number •Iceland •Luxembourg •Slovak •Ireland •New Zealand •Greece •Hungary •Czech Republic •Norway •Finland •Austria •Portugal •Denmark •Switzerland •Belgium •Sweden •Poland •Turkey •Australia •Mexico •Netherlands •Spain •Canada •Italy •France •United Kingdom •Korea •Germany •Japan •United States •0

•10

Rank •1

Broadband subscribers, June 2007 •United States

•66,213,257

•2

•Japan

•27,152,349

•3

•Germany

•17,472,000

•4

•Korea

•14,441,687

•5

•United Kingdom

•14,361,816

•6

•France

•14,250,000

•20

•30

•40

•50

•60

•70

This growth corresponds to increase in broadband penetration rates from 15.1 to 18.8 subscriptions per 100 inhabitants during the period. The number of broadband subscribers in the OECD increased 24% from 178 million in June 2006 to 221 million subscribers in June 2007. (Source : OECD, Jun. 2007) 6

II-2. Broadband Subscribers - Technology 35 30

DSL

Cable

Fibre/LAN

Other

25 20 15 10 5 0

Fibre-to-the-home (FTTH) and Fibre-to-the-building (FTTB) subscriptions now comprise 8% of all broadband connections in the OECD, up from 7% a year ago, and the percentage is growing. Fiber connections account for 36% of all Japanese broadband subscriptions and 31% in Korea. (Source : OECD, Jun. 2007) 7

II-3. But, Broadband Market Is Decreasing Subscribers

CAGR

(x 1000)

100%

98%

16,000

14,322

14,000

80%

12,000 60%

10,000 8,000

40%

33%

6,000 4,000 3,943

7%

2,000

7% 2%

5%

20% 2%

0 2000 01

02

03

04

subscribers

05

06 07.10

00%

CAGR

CAGR is rapidly decreasing even broadband network (xDSL) is penetrated over 80% of the total households. New Biz models like IPTV or TPS/QPS are required. To support premium services, FTTH (not xDSL) infra is required. (Source : MIC, Oct. 2007) 8

II-4. FTTH Prospect in Korea – Gov. view 2007

2010

FTTC

FTTH

~ 50Mbps BW

100Mbps Symmetrical BW

Internet Access Services

Convergence Services 10,000

50~100Mpbs users Over 100Mpbs users Total users

8,900 5,700 5,380

(unit : Thousand)

2,560

2,660

100

~ 2005

1,100 320

2007

2010 (Source : MIC, Oct. 2007)

9

II-4. FTTH Prospects in Korea – Telco. view KT ▶2005: 22,000 (GE-PON, WDM-PON) in Seoul and Gwangju ▶2006: 200,000 lines, 2010: 3,380,000 lines Hanaro Telecom ▶2005: 4,000 (GE-PON) at Gwangju, 2006: expand to other areas New City Construction Plan (U-city) ▶Dongtan, Paju, Pangyo, etc : 200,000+ lines/year starting from 2007 CATV SO will change from HFC to FTTH according to market trends

FTTH lines projection

(unit : Thousand)

Year

2005

2006

2007

2008

2009

2010

lines

260

2,550

5,700

7,540

11,440

13,450

(Source : ETRI, 2005) 10

I

Broadband Access Vision

II

III

National FTTH Prospects

City-scale FTTH Project

11

III-1. FTTH Service Trial Project by ETRI Period : 4yrs (’05~’08) Funding : $40M Investment Seoul Central Gov S. Provider & 50% Industry 35% Local Gov 15%

DaeJeon Gwangju

Daegu Busan

Gwangju City

Cosumption

Metropolitan city Population: 1,403,278

FTTH R&D 39% by ETRI

Household: 488,273 Area: 501.34 Km2

12

FTTH Infra 28% by S. Provider FTTH Testing & Interworking 33% by ETRI

III-2. Goal of FTTH Project Real FTTH (20,000 home-passed) 100 Mbps bandwidth per home New TPS convergence services

superstar enblem

FTTH

* TPS : Triple Play Service (internet, voice, video)

Existing MDU

13

III-3. FTTH Deployment Architecture

Service Center KT Infra & Service

HT Infra & Service

Korea Telecom

Traffic/Service Monitor

Hanaro Telecom

ETRI Service

Traffic Analysis

New Experimental Service

ETRI Service CMB Infra & Service

CMB (local SO)

ETRI Service

ETRI Optical Communication Research Center 14

III-4. FTTH Infrastructure 20,000 will be home-passed ▶2005yr: 5,627 homes ▶2006yr: 11,620 homes ▶2007yr: 18,044 homes

▶2008yr: > 20,000 homes (plan) Three providers are participated ▶ Korea Telecom: 36 % ▶ Hanaro Telecom: 63 % ▶ CMB (local SO): 1 % Four FTTHs are deployed ▶ 1 Gbps E-PON: 79 % ▶ 2.5 Gbps G-PON: 11 % ▶ 0.1 Gbps WDM-PON: 8 % ▶ 1Gbps WDM-PON: 2 %

Gwangju City Buk-Gu 10,126 homes GwangSan-Gu 2,559 homes

Seo-Gu 1,198 homes Dong-Gu

Nam-Gu 2,981 homes

15

1,180 homes

III-5. FTTH Service Deployment Korea Telecom

100Mbps internet service: MegaPass IPTV convergence service: MegaTV Video-on-Demand Network-based Time-Shifted TV TV portal (info, edu, banking, SMS, mail, etc)

100Mbps internet service: HanaFos

Hanaro Telecom

IPTV convergence service: HanaTV Ftp-based Download-and-Play Video-on-Demand Video Telephony TV portal (music, gaming, kids, picture, etc)

100Mbps internet service

CMB & ETRI

IPTV convergence service HD Video-on-Demand, Live TV (102 channels) Location-based targeted advertisement service Personalized IPTV service Realtime e-learning service 16

III-6. Project Experience 1 „ Who owns FTTH infra ? z From CO to MDF: Network Operators own duct and install fibers z MDF to each home: - MDU members own duct & Network Operators install fibers - Gov. recommends duct-sharing policy - Problems: A Network Operator installs bogus extra-fibers/UTP to frustrate competitors and reserve future fibers. There is no available duct space for next players.

New policy for duct-sharing is required

Duct space problem 17

III-6. Project Experience 2 „ Fiber installing time inside home is too slow z Existing MDU: 3 hours per home, 2 workers + 1 home owner cf. New MDU: already installed z Network Operator: How long time for these whole houses in a MDU ? I don’t know. It depends on the home owner’s schedule. z Home Owner: Do NOT stay too much at my house. I’m leaving right now.

New fiber-installation skill is required

18

III-6. Project Experience 3 „ What is FTTH benefits for me, RIGHT NOW ? z HD-VoD and IPTV is a matter of course because of my PPV money z How about my internet access to YouTube ? Is it 10 times faster ? - No, FTTH and xDSL shows same speed due to core NW bottleneck. - Correct answer, not proper one.

New technological breakthrough is required

19

III-7. Future Plan of FTTH Project From FTTH infra to U-city infra 1 Gbps@home & 10 Mbps@street New QPS convergence service

U-city Infra FTTH

Wireless

* QPS : Quadruple play service (internet, voice, video, wireless)

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In Summary „ Broadband access vision in Korea Seamless, broadband, integrated multimedia services, anytime & anywhere Wired (50~100 Mbps) 10 M, Wireless (>1 Mbps) 10 M subscribers by 2010 yr

„ National FTTH prospects Government drives real FTTH with 100 Mbps symmetrical bandwidth Telcos, Municipalities, CATV SO will deploy FTTH infra rapidly

„ City-scale FTTH project by ETRI Current: real FTTH, 20 K FTTH infra, 100 Mbps@home, TPS Future: FTTH as U-city infra, 1 Gbps@home & 10 Mbps@street, QPS

For more information and collation: Vice president: Jai Sang Koh ([email protected]) Team leader: Byung Tak Lee ([email protected]) 21