10/28/2006

Supporting Triple Play Services Through EPONSupporting Triple Play Services Through EPON

Advanced Technologies for Optical/Advanced Technologies for Optical/Wireless Access/Metro NetworksWireless Access/Metro Networks

IEEE Globecom Access 2006IEEE Globecom Access 2006

Dr. Rex NadenDr. Rex Naden

President and CEOPresident and CEO

November 29, 2006November 29, 2006

Nov 29, 2006 2

EPON Is Supporting Triple PlayEPON Is Supporting Triple Play

• Agenda– Teknovus – EPON Overview– Service providers moving to Triple Play with IPTV;

examples from Japan– Success factors

• Industry ecosystem• Clear benefits versus alternatives

– Carrier grade– Versatility– Cost– Management– Support for legacy services - TDM

• It must have a future

Nov 29, 2006 3

TeknovusTeknovus’’ StatusStatus• 3.0 million+ IPTV PON ports sold

• 14 OEMs shipping products

• 24 Service Providers in 5 continents, including 7 PTTs

• 5 issued patents and 49 patent applications– Fundamental patents on VLAN, Multi-Service, Multicast,

TDM, GBIC

Background• Expansion revenue stage

• Fabless semi company

• FTTx market

• Key application is video

• 65 people

• Offices in Petaluma, San Jose, Tokyo, Seoul, Shanghai

Nov 29, 2006 4

Ethernet Passive Optical Network (EPON)Ethernet Passive Optical Network (EPON)

OLT

ONU

ONU

ONU

ONU

ONUONUIEEE 802.3ah

1 Gbps

Optical Line Terminal in

Central Office

Optical Network Unit

in Home

• Up to 64 ONUs• 20KM reach• Full IPTV support• Cost similar to or lower than DSL but 100x the speed

Passive Splitters

Nov 29, 2006 5

EPONEPON Network Network -- GEPONGEPON

Teknovus ONU ChipExisting

Dark Fiber/Splitter

Teknovus OLT Chip in Central Office

Home Gate Way

Tepco

Nov 29, 2006 6

IPTV: The Killer App for PONIPTV: The Killer App for PON

• Digital TV over IP technology= “IPTV”– The fourth TV platform: Free to Air, Cable, Satellite,

IPTV– Five Million users today, 27M by 2008 – A revolution in entertainment delivery– Seen by Telcos as critical for long term success– Flexible, two-way, narrowcasting, time shifting– 2x or more increase in ARPU– Ecosystem appearing, led by Microsoft, Yahoo, Google

• The future of IPTV is fiber PON– Full spectrum of entertainment capabilities: streaming

HDTV, broadcast TV, narrowcast TV, VOD

Nov 29, 2006 7

FTTH in Japan FTTH in Japan –– Some ExamplesSome Examples

• NTT East (Includes Tokyo)

• NTT West (Includes Osaka)

• KDDI & TEPCO (Tokyo)

• K-Opticom (Osaka)

• Chukoku Engergia (Hiroshima)

• Chubu Commufa (Nagoya)

• ST Net Pikara (Shikoku)

• Kintetsu Cable Network (Osaka)

• …

• Tiered Data Services

• “Copper-Grade” Telephony– Emergency Services

• Broadcast TV– “DVD Quality” IPTV– Off-Air IPTV Coming Soon

• Video-on-Demand

• Karaoke-on-Demand

• On-Line Gaming

• Remote Back-Up

• …

Nov 29, 2006 8

Kintetsu Cable TV Starts FTTH ServiceKintetsu Cable TV Starts FTTH Service

Service started Feb 06100 Mbps 4,725/month; 1Gbps 5,775/month

Cable Market – Japan- 06 50K, 07 200K, 08 400K

Nov 29, 2006 9

Energia Communications ChukokuEnergia Communications Chukoku

• Energia Communications is the communications division of Chukoku Power (chukoku denryoku)• The Engergia service is called MegaEgg, which offers triple-play (data, VoIP, television) services• Hiroshima is major city served by Energia

Nov 29, 2006 10

Telephony & Web Access Are (Almost) FreeTelephony & Web Access Are (Almost) Free

No relaxation of QoS for traditional services even though $ value is decliningService-based competition is replacing connectivity-based competitionIPTV is the killer app IPTV must be low-cost, high-performance, & secure

SSkype and similar services

are driving the price of voice calls close to zero

US$ / kb/s Source: Ministry of Public Information and Communications in Japan

Raw speed & price drive data services

10/28/2006

EPON is Successful in the Market EPON is Successful in the Market

Nov 29, 2006 12

EPON EPON -- Many Large Carrier DeploymentsMany Large Carrier Deployments

• Carriers commercially deploying EPON:– Announced

• NTT• KDDI• K-Opticom• Korea Telecom• China Netcom• Hanaro

– Additional 20+ Carriers on 5 continents

• Subscriber volume – 5 million by end 2006

• Installed CO capacity - 10 million ports

• EPON is a mass-deployed technology

Nov 29, 2006 13

Vibrant & Growing EPON EcosystemVibrant & Growing EPON Ecosystem

• Optics/Transceivers/PHY Vendors– Delta Electronics– ETRI– Fiberxon– Hitachi/Lightron– NEC– Sumitomo– Vitesse– YOFC– Zenko

• ASIC Vendors– ETRI– Centillium– Conexant– Immenstar– PMC/Passave– Teknovus

• Test Equipment Vendors– Agilent– Fujitsu

Since IEEE Std 802.3ah approval, equipment cost has decreased by 50% and optics cost has decreased by 70%

• System Vendors– Allied Telesyn– Alloptic– Corecess– Dasan/ Siemens– Entrisphere– Fiberhome– Fujitsu– Furukawa– Hitachi– Huawei– Hyundai– Mitsubishi Electric– Nayna– NEC– Ocean Broadband– OKI-Fujikura– Salira– Samsung– Sumitomo Electric– UTStarcom– ZTE

Nov 29, 2006 14

EPONEPON’’ss ManyMany ApplicationsApplications

ApplicationsType of Carrier

# of Carriers

Internet Television VoIP Cell-Site Back-Haul Other

Telco 12 12 5 9 1 -Power Line

8 8 4 6 - -

CATV MSO

4 4 4 4 - -

Mobile Operator

1 - - - 1 -

Other 1 - - - - 1Total 26 22 11 17 2 1

For Many Different Types of Service Providers

10/28/2006

Supporting Triple Play ServicesSupporting Triple Play Services

Network Architecture Requirements

Nov 29, 2006 16

Supporting Triple Play ServicesSupporting Triple Play Services

• Bandwidth– Available now– “Simple” evolution to higher speeds, no forklifts

• Advanced end-to-end service architecture – Flexible/Versatile– Easy to change and manage

• Low-cost solution

• TDM – Support legacy services– Enable all services over EPON network

Nov 29, 2006 17

Why 10Gb/s EPON?Why 10Gb/s EPON?

• 1 Gb/s EPON opened floodgates for advanced services– Video-on-Demand– High-definition IP TV streaming video– Time-shifted broadcast– Online video games

• Users began to accept, like, and demand more bandwidth-intensive services– File sharing, picture uploading, video conferencing– More simultaneous IP TV channels– More on-demand, less broadcast (“information pull” instead of

“information push”)

• Supports higher split ratios – leading to lower costs

• Carriers are looking for a next generation solution– Compatible with existing outside plant– Compatible with existing NMS and OAM

Nov 29, 2006 18

Bandwidth Bandwidth -- the Ethernet PON Evolutionthe Ethernet PON Evolution

Nov 29, 2006 19

Bandwidth Bandwidth –– IEEE 10G EPON SupportersIEEE 10G EPON Supporters

Victor Blake,Lars Thon,

Dean Jackson,Guy Trotter,Hai Vodinh,

David Walsh,Ketan Gadkari,Vikrama Ditya,

Sanjay Sharma,Petre Popescu,

Howard Frazier,Wael Diab,

Bill McDonald, Joe Decarolis,

Zhong Deqiang,Shen Cheng Bin,

Wang Bo,Ching-Sheu Wang,

Russ Gyurek,Paul Voois,

William Keasler,David Hare,

Seuk-Jin Kang,Steven Swanson,

Ming Wu,Dong Soo Lee,

Hark Yoo,Bin Yeong Yoon,Douglas Cheng,

Hu Baomin,Liu Wu,

Advance/Newhouse CommunicationsAelurosAgilentAgilentAllied TelesynAllopticAllopticAllopticAmple CommunicationsAstar-ODSMBroadcomBroadcomCentillium CommunicationsCentillium CommunicationsChina NetcomChina TelecomChina TelecomChunghwa TelecomCisco SystemsClariPhy CommunicationsConexant SystemsConexant SystemsCorecessCorningDelta ElectronicsETRIETRIETRI FiberxonFOTEK OptoelectronicsFOTEK Optoelectronics

Charles Chen,Eugene Lee,

Niel Ransom,Drew Perkins,

Chou Yun Lung,DarZu Hsu,

Yun-Lung Chou,Keiji Tanaka,H. Kitagawa,

Dae Kyung Kang,Hirotaka Wada,

Naoto Saeki,Ed Cornejo,

Mike Dudek,Brad Booth,

Rick Li,Byeong Hoon Kim,

Eric Hyunsurk Ryu,Geoffrey Garner,Jung Won Park,

Yosuke Komiyama,Ed Boyd,

Glen Kramer, Ryan Hirth,

Sanjay Kasturia,Denis Beaudion,

Jaafar Haji Mohamad Abu Bakar,Sahrul Hilmi Ibrahim,

Eric Lynskey,Henry Tzeng, Frank Chang,

ImmenStar ImmenStarIndependentInfineraITRIITRIITRIKDDI R&D LabsK-Opticom Korea TelecomNECNECOpNextPicolightQuake TechnologiesSalira SystemsSamsung ElectronicsSamsung ElectronicsSamsung ElectronicsSamsung ElectronicsSoftbank BBTeknovus Teknovus TeknovusTeraneticsTexas InstrumentsTelecom MalaysiaTelecom MalaysiaUNH IOLUTStarcomVitesse

Carriers Formally Supporting NG-EPON

Nov 29, 2006 20

Forecast of US Households Using HDTV

Reproduced with permission from Technology Futures, Inc.

10G EPON for Digital Television10G EPON for Digital TelevisionService Offerings

Today Near Future (2010)

• Broadcast• Video-on-Demand

• Time-shifted / narrowcast• All-channel personal video

recorder• Picture-in-picture / split screen• Digital cinema distribution• Personal multimedia

publishing• Residential and business

digital video surveillance

• High-Definition TV (HDTV)• ~10 Mbps per channel

• Large Screen Digital Imagery (LSDI)

• Standardized by ITU-T J.601• 40 to 160 Mbps per channel

• Standard Definition TV (SDTV)

• 2 Mbps per channel

Near Future (2010)TodayBandwidth per Channel

• 1000 or more channels• Mix of SDTV, HDTV, LSDI

• 30 ~ 100 channelsNear Future (2010)Today

Number of Channels

For now, AT&T will offer 200 channels, though it expects to offer 1,000 or more channels when it expands the service to other markets in about six months. Its channel lineup already includes major networks as well as ESPN, HBO, the Discovery Channel, the Disney Channel, MTV, the History Channel, USA, CNN, National Geographic and others.

The Wall Street JournalJanuary 5, 2006

For now, AT&T will offer 200 channels, though it expects to offer 1,000 or more channels when it expands the service to other markets in about six months. Its channel lineup already includes major networks as well as ESPN, HBO, the Discovery Channel, the Disney Channel, MTV, the History Channel, USA, CNN, National Geographic and others.

The Wall Street JournalJanuary 5, 2006

Nov 29, 2006 21

10G EPON For Wireless Back10G EPON For Wireless Back--HaulHaul

• 4th Gen mobile communication will be ubiquitous– Bandwidth: ~30Mbps/user, 100M~1Gbps/access point– Access point coverage will decrease– Number of access points will increase– EPON is a natural back-haul solution for the 4th Gen access

points

• Next generation wirelessback-haul– 802.11n: up to 100 Mbps

per device– 802.16e: up to 70 Mbps

per access point

• Access bandwidth mustgrow beyond 1 Gbps

Nov 29, 2006 22

Carrier Grade QoS at Low CostCarrier Grade QoS at Low Cost

• Ethernet PON standard provides strict Quality of Service support

– EPON maintains multiple traffic flows using Logical Link IDs(similar to Port ID in GPON or Service ID in DOCSIS)

• Ethernet PON provides guaranteed QoS/SLA on each flow– Guaranteed minimum bandwidth– Controlled maximum bandwidth– Guaranteed Latency– Fair dynamic distribution of excess bandwidth allows full utilization

of the PON for maximum carrier ARPU

• Ethernet PON provides advanced services:– IGMP and single-copy multicast for IP video – VoIP with emergency call handling– TDM support with jitter and wander within ITU-T specs– Multiple VLAN modes to accommodate various telco architectures

and diverse regulatory environments– IPv6– SNMP, Statistics, a host of other features

Nov 29, 2006 23

EndEnd--ToTo--End Service ArchitectureEnd Service Architecture

Video / IPSTB

C I S C O S Y S T E M S

VoD Server

Soft Switch

PSTN

PON System: A L2/L3/L4 Ethernet Switch• Connects the Core & Home Networks• Multi-service • Independent service contracts• Bi-directional QoS (especially latency)• Designed to reduce end-to-end cost

CoreNetwork

HomeNetwork

Triple-Play

FTTH ONT OLT

Nov 29, 2006 24

PerPer--Flow QoS is Required for TripleFlow QoS is Required for Triple--PlayPlay

Video / IPSTB

C I S C O S Y S T E M S

VoD Server

Soft Switch

PSTN

SLA per Service Independent Flow per Service LLID per Service

CoreNetwork

HomeNetwork

Triple-Play

FTTH ONT OLT

ISP

Nov 29, 2006 25

• Shapes bursty traffic without dropping packets highest quality IPTV• Individual buffering & shaping for up to 256 simultaneous channels• Field-proven in multiple deployments• Lowest cost OLT• Lowest cost ONU

Optimum Solution for IPTV

BuiltBuilt--in Downstream Buffering for IPTVin Downstream Buffering for IPTV

OLT990 Mb/sline rate

VoD Server

1 Gb/sline rate

5 Mb/s

Layer-2 Core

350+ Mb/s, 90kByte Blocks5 Mb/s

ONU 1

ONU 2

ONU 3

Per-ChannelBuffering& Shaping

Nov 29, 2006 26

EPON vs. GPON:EPON vs. GPON:EPON has Less Expensive OpticsEPON has Less Expensive Optics

GPON EPON

Downstream rate (Mbps) 1244 or 2488 1250

Upstream rate (Mbps) 155, 622, 1244, or 2488 1250

Laser on/off ≈ 13 ns 512 nsAGC ≤ 400 ns

44 ns *CDR ≤ 400 ns

• Short AGC intervals in GPON require optical power leveling– Additional protocol to negotiate power level– Digital interface to transceiver to set the values

• Short laser on/off times in GPON require high-speed laser drivers• Relaxed specification in EPON allows less expensive devices to be

built

For more information see• J. Redd and C. Lyon, “Challenges Mark GPON FEC Receiver Designs,” Lightwave,

PennWell, vol. 23, no. 5, pp. 11 – 14, May 2006.• M. Fuller, “GPON Burst-Mode Receiver Electronics Prove Challenging,” Lightwave,

PennWell, vol. 23, no. 5, pp. 11 – 17, May 2006.

*

Nov 29, 2006 27

EPON Protocol is NOT ConstrainedEPON Protocol is NOT Constrained

GPON EPONMax Logical Reach (km) 60 unlimitedMax Logical Range (km) 20 unlimitedMax Logical Split 128 32767

• Current PON constraints are from optical components

• Optical components are continuously improving

• Protocol should be future-proof and should not limit PON performance

Nov 29, 2006 28

EPON has Flexible EncryptionEPON has Flexible Encryption

EPON• IEEE 802.1AE (MacSec)

– Approved in June 2004 – Based on AES-128/GCM mode– Requires Frame Extension IEEE

802.3as (not approved yet)

• Existing EPON chips have flexible design– Have multiple encryption

schemes built-in– Up to four schemes

GPON• Encryption is specified in

G.984.3– Based on AES-128/CTR mode

• Adding security specification to standard is not always an advantage.

• GPON’s adoption in China remains problematic because the AES cipher suite does not have regulatory approval in China.

• China Telecom has specified a China-specific encryption.

Nov 29, 2006 29

Connecting Two Ethernet NetworksConnecting Two Ethernet Networks

Printer

L2 Switch

AV Bridge

Print Server

Link/Rx LPT1 LPT2 COMPower/TX

Core Network:IEEE 802.3 Ethernet

Home Network:IEEE 802.3 Ethernet

Ethernet-over-GEM-over-SONET or Ethernet?ITU-T GPON or IEEE EPON?

ONU 1

ONU 3

ONU 3

OLT

Nov 29, 2006 30

TDM TDM –– Supporting All Services & Meeting Supporting All Services & Meeting ITU SpecificationsITU Specifications

TDM / EPON is capable of transporting Stratum-traceable timing.

TDM Jitter Performance

• Jitter Amplitude: p-p HP1: 0.132 UI / p-p HP2: 0.128 UI• Jitter Transfer: < -40 dB across the ITU band• Jitter Tolerance: per diagram• Bit Error Rate: 0 in 24 hr. test.• Frequency Tracking: locks to at least +/- 100 ppm• All testing done in the presence of full PON traffic load.

0.1

1

10

100

10 100 1000 10000 100000 1000000F (Hz)

Tol

eran

ce (U

I)

TK3515 (E1)

G.823 Mask

TDM Jitter Performance

• Jitter Amplitude: p-p HP1: 0.132 UI / p-p HP2: 0.128 UI• Jitter Transfer: < -40 dB across the ITU band• Jitter Tolerance: per diagram• Bit Error Rate: 0 in 24 hr. test.• Frequency Tracking: locks to at least +/- 100 ppm• All testing done in the presence of full PON traffic load.

0.1

1

10

100

10 100 1000 10000 100000 1000000F (Hz)

Tol

eran

ce (U

I)

TK3515 (E1)

G.823 Mask

0.1

1

10

100

10 100 1000 10000 100000 1000000F (Hz)

Tol

eran

ce (U

I)

TK3525 (E1)

G.823 Mask

Nov 29, 2006 31

Lessons from HistoryLessons from History

• Ethernet has won every time it has competed with “higher speed” and “higher efficiency” technologies– Ethernet vs. Token Ring– Ethernet vs. FDDI– Ethernet vs. ATM– Ethernet vs. SONET– Ethernet vs. ATM in the DSLAM – Ethernet vs. Multi-service in the Metro

• Ethernet is cheap, simple, easy to install & manage

PredictionEthernet all the way will win a large fraction of the market.

Nov 29, 2006 32

EPON the Preferred Choice for Carriers WorldwideEPON the Preferred Choice for Carriers Worldwide

EPON is successful in the market

EPON has clear benefits vs. PON alternatives

EPON has a future

10/28/2006

Thank youThank you