Market tendencies in optical networks (Tendencias de mercado para las redes ópticas)

Miguel Angel Bravo ParraJefe de Ing. Sistemas Broadband

NEC de México S. A. de C. V.

Agenda

Introduction

Optical Technologies

FTTx (Fiber to the home, building, cabinet, etc.)

Carrier Ethernet

( l h l l )WDM (Wavelength Division Multiplexing)

Technology MovementTechnology Movement

Agenda

Introduction

Optical Technologies

FTTx (Fiber to the home, building, cabinet, etc.)

Carrier Ethernet

WDM (Wavelength Division Multiplexing)

Technology MovementTechnology Movement

Introduction

The optical communications has an important role withintelecommunications networks, in fact this networks are present in severall B kb R i l dlayers as, Backbone, Regional and access

DW4000/DW4200WDM

BackboneNetwork

ManagementSystem

Regional/MetroNetwork

UN5000 UN5000

Edge router

Core Router Core Router

Edge Router

DW4200ROADM

IntegratedMSP andROADM

DW4200ROADM

MN2300

UN5000

ROADMROADM

MN3100 MN1200

IP VPNFTT I t t V i TV L2 VPN IP VPN

MN2300

Access NetworkG-PONDSLAM

MW0500

IP-VPNFTTx: Internet Voice TV L2 VPN IP-VPN

User’s Network

Expectation for Global Optical

(DEC2008)

• Expecting at least a 5% spending decline in 2009 followed by only modest growth at best in 2010.

(DEC2008)

Impact from Financial Meltdown

Optical Transport Market

25 000

30,000

SLTE Core WDM Metro WDM Band Mgmt Aggregation

Metro: High growth expected in general, and small decline in 2009

20,000

25,000

ns

and small decline in 2009.

10,000

15,000

$ m

illio

n

0

5,000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Aggregation $4,860 $5,702 $6,141 $6,039 $6,930 $6,685 $5,515 $6,193 $6,919 $7,039 $6,832

Band Mgmt $1,216 $1,252 $1,350 $1,641 $1,754 $1,724 $1,506 $1,838 $2,281 $2,507 $2,636

Metro WDM $738 $1,066 $1,424 $1,973 $2,943 $3,697 $3,458 $4,520 $5,877 $6,849 $7,625

Core WDM $1,307 $1,257 $1,605 $2,125 $2,831 $3,501 $3,129 $3,900 $4,877 $5,520 $5,990

SLTE $237 $154 $322 $320 $549 $1 003 $1 233 $1 480 $1 739 $2 000 $2 250

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

SLTE $237 $154 $322 $320 $549 $1,003 $1,233 $1,480 $1,739 $2,000 $2,250

Forecast by product group, Optical Network Global, 2003–2013 Source: Ovum Nov, ‘08

Agenda

Introduction

Optical Technologies

FTTx (Fiber to the home, building, cabinet, etc.)

Carrier Ethernet

WDM (Wavelength Division Multiplexing)

T h l M tTechnology Movement

FTTXGPON: Overview

Optical Line Termination (OLT)CO-site or Remote

Optical Distribution Network (ODN)(20km physical/60km logical)

Optical Network Unit/Termination (ONU/ONT)FTTH/O, FTTB

FTTP: (ONT)

Up to 2.4Gbit/s Downstream

Ranging Process: Ttimeslot delay

1490nm

EthernetPOTSMoCA

p

Packet transmit scheduling and shaping in OLTEncryption (AES128) per ONT

Up to 128 ONT/Us addressable, 4k flows (GEM ID)

ATM

Ethernet

1550nm

1310nm

FTTB/Cab (ONU)Passive Optical Splitter

1.2Gbit/s Upstream (up to 2.4Gbit/s)

Transmit based on Dynamic Bandwidth Allocation (DBA) Mechanism

TDM

VDSL2

y ( )Multiple service classes (T-Cont) supported for QoS

Up to 128 ONT/Us addressable, 4k flows (GEM ID)

ONT Management and Control Interface (OMCI)

June 2008

GPON Everywhere: DSL, Wimax and Power Lines

WiMAXWiMAX

BroadbandNetwork

OLT

FTTH/O

FTTB

VDSL2 / ADSL2+

CPE

WiMAX

FTTBRepeater

Repeater

CPE

CPE

L

LV Head End with GPON ONT

LowVoltage

Comparison of Broadband Triple-Play

USD74 USD57

USD94~102

ADSL

Triple Play on FTTH RevenueIncrease

USD94~102

USD44USD50

USD33

USD

June 2008

Agenda

Introduction

Optical Technologies

FTTx (Fiber to the home, building, cabinet, etc.)

Carrier Ethernet

WDM (Wavelength Division Multiplexing)

Technology MovementTechnology Movement

Technical Trend in Packet Transport Technologies

• Current packet transport technologies– MPLS‐TE + PWE3

d– T‐MPLS and MPLS‐TP– PBT 

• NEC MN5200/MN5300 today’s “T‐MPLS/MPLS” solution 

Ethernet

IP/POSPBB/PBT

MPLS

ATM

IP/POS

MPLS-TP

T-MPLSMN5200/MN5300 today’s

NG-SDHSDH

OTN

MN5200/MN5300 today s“T-MPLS/MPLS”

13

WDM

Technical Comparison- Al l With PWE3

Technology MPLS-TE T-MPLS MPLS-TP

Service Type P2P, LAN P2P P2P, LAN

Tunnel PW/LSP PW/LSP PW/LSP

QoS E-LSP/L-LSP E-LSP/L-LSP E-LSP/L-LSP

Control Plane Routing Signaling Not now Routing Signaling

Management Style Data style Transport style Transport style

OAM LSP Ping/Tracert Packet APS OAM MPLS OAM

Protection Fast Rerouting Linear/Ring APS Linear

Typical Topology Mesh Ring Linear MeshTypical Topology Mesh Ring, Linear Mesh

Multicast IP Routing Not Design VPLS optimization

Synchronization No Support Support

14

Traffic flow in the network

Uplink Layer

T-MPLS/ MPLS

Pseudo Wire

Client LayerClient Equipment

E hL2

LSP1OpticalOpticalLi kLi k

L2/3 switchPW1

Ethernet over MPLS

EthernetL2 Switch

GE/2.5G/10G LSP2

LSP1

1000M50M

LinkLinkSDH/PDH

..PWn

ATM over ATM STM 1

Circuit Emulation

VC mapping

STM-1/E1/T1E1/T1

LSP3 10M50M

30M ATMATM over MPLS

PE/Router

ATM STM-1

PW-APW-B

Ethernet

Map Client traffic QoSto PW QoS

Map PW QoS to LSP QoS

Agenda

Introduction

Optical Technologies

FTTx (Fiber to the home, building, cabinet, etc.)

Carrier Ethernet

WDM (Wavelength Division Multiplexing)

Technology MovementTechnology Movement

What is Metro WDM?

Long Haul► > 1000km

► DWDM, 10/40Gbps

► Optimized for maximum performance

Metro (Core & Regional)► Up to 250 - 1000 km► C and DWDM,

2.5/4/10/40Gbps► Optimized for price vs

performance► Easy of use and low power

consumption

WDM Access► Up to 40 km► CWDM sufficient

Metro WDM provides:–Simple high capacity pipes

► CWDM sufficient, 1/2.5/4/10Gbps

► Environmentally hardened

–Service separation and expansion by λ–Easy design and management in an investment.

Metro WDM is not only for Telco with high capacity y g p ytransmission but also for alternative operators.

Internet Traffic Growth (Residential)

10G growth per year

Source: JPIX Jan ‘08

100G growth in 3 months

Note: The monitor point of trafficNote: The monitor point of trafficshown here is IX (Internet exchange).That means its volume is just a pertof internet which goes through IXpoint and it does not necessarilyinclude MBH and IPTV traffic.

Source: AMS IX Jan ‘08

TM Series Architecture

Chassis

3 types. High and Medium Capacity Central Office type, and single λ CPE type.

• Multi-service• Multi-reach

Seamless

P i U it CWDM type and DWDM type

+• Seamless

integration of CWDM and DWDMLow powerPassive Units CWDM type and DWDM type

Capacity growth by modular

+

• Low power • Pay as you

grow• Flexible

configurationsTraffic Units

Transponders/MuxpondersTunable

Lowest spare part costs, long-haul

configurations• Single-fiber

and fiber-pair configurations

• Low

Traffic UnitsTransponders/Muxponders

pl ggableFlexible Service combination, enabling CWDM/DWDM and

or Common for chassis and passive units • Low Operational costs (OPEX)

pluggable enabling CWDM/DWDM andreconfigurable HW solutions

Agenda

Introduction

Optical Technologies

FTTx (Fiber to the home, building, cabinet, etc.)

Carrier Ethernet

( l h l l )WDM (Wavelength Division Multiplexing)

Technology MovementTechnology Movement

Optical Market evolution

R l t d tRelated toWDM

Large scale deployment ofLarge scale deployment of 100G would not be seen before 2013.

Source: Ovum, Dec 2008

Technology evolution

•Multilevel Coding Modulation•Polarization Division Multiplexing•Digital coherent

In case of 40G (technology)-1

Customers are moving from ODB to DPSK.ODB to DPSK.

In case of 40G (technology)-2

10-2 Back-to-back conditionOnly OSNR degradation

■ RZ DPSK

10G NRZ 40G RZ-DPSK

40G RZ-DQPSK

Rat

e

■ RZ-DPSK● CS-RZ◆ NRZ

RZ-DQPSK

10-3

10-4

40G RZ DQPSK

Bit

Err

or R RZ-DQPSK

10G NRZ10-5

10-6

B 10-7

10-8

10-9

10-10

10 12 14 16 18 20 22 24 26 28Optical SNR (dB)

10-11

10-12

p ( )

OSNR for Different Modulation Schemes

In case of 100G (technology)-1

Press release (28th Oct. 2008)

AT&T NEC and Corning Researchers CompleteAT&T, NEC and Corning Researchers CompleteRecord-Breaking Bandwidth Capacity Test

In case of 100G (technology)-2

Corporation with Juniper to provide the trial system.

Applied 25G x 4Lambdas for SMF as a client interface (CFP).

ROADMJuniper NEC AT&T

AT&T’s Field Fiber

Established cooperative relation with Finisar which is primal SFP supplier.

100G 100G TPND TPND PrototypePrototype

WDMINF

MU

X

ILA

100100GbEGbEMACMAC

UX

SSMF,8dB, 2km

DE

MU

MSA module (CFP) with 25G x 4Lambdas LAN WDM I t f

100GbEMAC

LAN WDM Interface,compliant with IEEE 802.3.ba

Finisar

In case of 100G (technology)-3

P1.

C20

08 a

s PD

Pnt

ed a

t OFC

y w

as p

rese

nTh

is a

ctiv

ity

June 2008

Questions & Answers

Thank you for your attention