Shen Chengbinshencb@sttri.com.cn

Shanghai Research Institute of China Telecom

April, 2012

EPON Technology and its Applicationin China Telecomʹs Access Network Migration

Page 2

Increasing BB subs in China and Technology Evolution

•The immigration from ADSL2+ to FTTx even to FTTH is accelerated •The gap between TOTAL and ADSL in earlier years is Ethernet based FTTB•The gap between TOTAL and ADSL in recent years is PON based FTTX•China broadband subscriber installed base is estimated to reach 180 million ports by 2014

0

20

40

60

80

100

120

140

160

180

2005 2006 2007 2008 2009 2010 20110%

5%

10%

15%

20%

25%

30%

35%

40%

45%

38

52

66

83

103

126

156

2637

52

67

84

100

115

total Subs (DSL+FTTX) ADSL Subs Growth Rate (total) Growth Rate (ADSL)

Page 3

China's relative lower BB Penetration

•Compared with developed coutries, China has lower BB household penetration (<40%) ;

•Great development potential and market opportunity!

China BB Household Penetration

CT Broadband Access Subscriber Growth

2.57.4

14.221.0

28.435.7

44.353.5

63.5

76.8

China Telecom piloted and promoted EPON/GPON ecosystem in China in 2004, Both IEEE802.3ah and ITU‐T G.984 were released. As a fixedline operator, China Telecom pays a lot of attention to any progress in FTTX technologies

after a comprehensive evaluation, China Telecom considered EPON as more mature. e.g. EPON began massive deployments in Japan and South Korea.

in 2005, China Telecom started EPON field trial in 4 provinces to learn how to deploy EPON

EPON Interoperability is critical for the success and deployment of EPON widely, so China Telecom started IOP research in 2005. 

Some technical  issues were solved such as: MPCP registration ONU authentication: 

Logical IDMAC based

ONU remote management: using CTC Specific OAM extension (MIB, alarm, performance)

In Q1‐2007 CTC achieved large scale and all‐round chip and system EPON IOP the first time in the world (3 chip vendors, 10 system vendors)

Data encryptionReport manner & DBA implementationMulticast

Page 6

CTC Broadband Technology Migration Milestones

Before 2007, ADSL/ADSL2+ was the dominant technology

In 2007, CTC and other main operators started massively deployment of fiber access based on ʺFIBER‐IN & FIBER‐OUTʺ strategy after China Telecom achieved the all‐around and large‐scale IOP of EPON 

GPON and 10G‐EPON began deployment after EPON

2000 2005 2007 2009 2010

10M

50M

100M

ADSLADSL2+

10G-EPON

GPON

All these technologies will co-exist in CT access network

EPON

EPON is used in variant deployment scenarios in ChinaTelecom Based on comprehensive analysis on TCO，bandwidth capbility, technol. Trend, etc., China Telecom adopt different deployment mode to local conditions:

Green field (new area)• Stop deploying feeder &

distribution copper wires• FTTB (PON) + Ethernet

before 2010• FTTH since 2010

Brown field (existing area) • (preferred) FTTB (PON)＋

DSL with copper wire length < 500m before 2010

• Bandwidth target: 8-20Mb/s• some residential cell were

upgraded by FTTH since 2010

Cover all the new business•buildings by fiber•FTTO or FTTB

Residential customer, urban areas

Business buildings, Urban areas

Principally stop deploying feeder copper wiresfiber to the village plus DSL

•EPON (preferred)•P2P

Bandwidth target: >4Mb/s

Rural areas

8

Fiber‐in & Copper‐out historyfrom FTTB/N to FTTH  From 2008 to 2010, through EPON deployment in FTTB/N architecture:1. Customers’ access bandwidth improved significantly2. EPON equipments and ODN technologies were improved, and China Telecom completed OLT distribution in key network points

in 2010, PON is mature enough and ready for FTTH mass deploymen:•equipment price•engining•technician •IT system•service processand China Telecom changed to FTTH leading

Page 9

Chinaʹs EPON Ecosystem

ASIC Optics

China Telecom has played key role in China EPON ecosysme

access network's technology and architecture is being changed

Ethernet19%

DSL80%

PON1%

DSL59%

Ethernet10%

FTTB(PON)26%

FTTH(PON)5%

2007 Q1, 2011

CTC announced “Broadband China, Optical City” project

On 16 Feb, 2011, China Telecom announced the majestic project to accelerate the FTTH deployment– In three years, CTC will complete fiberization of all cities’ BB 

networks to achieve the target of 100M to home, 1G to building– by the end of 12th 5‐Years (2015), China Telecom‘s FTTH‐passed 

homes will reach 100+ Million marker

Page 12

FTTx Development Strategy, progress and target

Strategy Increase FTTH share in FTTx deployment to provide 20M for urban residential users and 50~100M for HDTV and/or multi channel IPTV users starting 2010

Speed up FTTO deployment in commercial buildings  to provide 100M~1G bandwidth for business users

Progress and plan FTTH home pass (new): 2010: 10M; 2011: 30M; 2012: ~25M,  FTTH subscribers (new): 2010: 1M; 2011: 5M; 2012: maybe>10M

FTTB/N home pass (new): 2009: 7M; 2010: 10M; 2011: 10M;2012:maybe >7M

Page 13

China Telecom uses EPON as a multiple-play platform

EPON is used to bear variant services with low cost in China Telecom's networks

Development & Application of 10G‐EPON Technol.

China Telecom deeply involved in 10G‐EPON standardization and industry improvement. in Apr. 2011, CTC achieved 10G‐EPON interoperability

10G‐EPON or XG‐PON1 will be deployed first to improve MDU’s uplink bandwidth to achieve FTTH‐like capacity for each subscriber

More than 500 ports 10G‐EPON fed MDU are already in operation in China Telecom networks

EPON

WDM PON

2009

GPON

10G-EPON

XG-PON1 XG-PON2

2010 2011 2012

Asymmetric &Symmetric

10G GPON

Asymmetric Symmetric, no plan

IEEE802.3av release in Sep, 2009Commercial chipset and optical TX will be ok soonCommercial deployment: Q1,2010

2010.11release XG-PON1 standardCommercial chipset and optical TX: Q2,2012Commercial deployment: end fo 2012

Page 15

China Telecom actively take part in PON standardization

China Telecom deeply involved in IEEE802.3av and IEEE1904.1 China Telecom promoted EPON in BBF together partners

– TR‐200: Using EPON in the context of TR‐101– WT‐287: Optical Layer Management

China Telecom contributes also to FSAN and ITU‐T to GPON standards, and some key contributions were adopted

China Telecom pushes China PON industry in CCSA (China Communication Standardizaiton Association) to promote China Telecomʹs specs to be a Chinese industry standards– EPON interoperability– 10G‐EPON– TDM over EPON and GPON

Page 16

BTW: China Telecom’s View on GPON

Now, GPON technology and equipment are mature enough to meet China Telecom FTTH deployment requirements

Massive GPON deployment in FTTH kicked off from 2010 with volume increasing dramatically

CT will migrate FTTB/N into 10G PON in future (10G EPON first) as both GPON and EPON do not provide sufficient bandwidth to meet growing customer demand

GPON and EPON will co-exist for FTTH deployment in the next few years.