Ultra Fast Broadband and the Property sector Rohan MacMahon - - PowerPoint PPT Presentation

Ultra Fast Broadband and the Property sector

Rohan MacMahon Strategy Director

May 2011

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To accelerate the roll out of ultra fast broadband to 75% of New Zealanders over ten years, concentrating in first six years on priority broadband users such as businesses, schools and health services, plus green fields developments and certain tranches of residential areas

NZ Govt’s Ultra Fast Broadband Objective

CFH : Crown-owned company created to deliver:

• FTTP ~3.9M population end 2019, ~1.2M premises
• Priority users by end 2015
• UFB policy: 100Mbps / 50 Mbps; 1Gbps + for priority users
•  “Sister” initiative for rural areas

May 2011

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• General purpose technology:
• Greater efficiency & productivity
• Sustainable job creation
• Improve education & health
• Greater social inclusion
• Environmental benefits
• Internationally competitive
• Accelerated investment
• Open access network

Context: UFB policy drivers

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Context: growing demand for bandwidth

Source: NBN Co, Australia Kilobits per second, log scale

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UFB schematic: “the last mile”

Cabinet Central Office Point of Interconnect Corporate Small Business Retail Service Providers Point-to- Point Switch GPON ONT GPON ONT Residential

Partners fund – Layer 1 & 2 CFH funds Layer 1; partner funds Layer 2

Premise Boundary

Outside UFB scope

Point of Interconnect

1 Point of Interconnect per Candidate Area

POTS CIR Upstream Downstream Throughput Video Wholesale Price

Copper POTS (voice) + ADSL2+

1 line 45 Kbps 850 Kbps 10-13 Mbps Best efforts No ~$60

Fibre UFB 100/ 50

2 lines 2,500 Kbps 50,000 Kbps 100 Mbps Certain IP-TV $55

Improvement

+100% >60 times >60 times 10-7 times

Note: Prices per month ex GST.

So what are you driving?

UFB offers vastly superior product for lower wholesale price

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Takeup drivers: Residential

• ADSL & POTS substitution:
• Current NZ broadband ave 3.4 Mbps*
• Schools  viral into residences
• Video  Over The Top, IP-TV & P2P VC

 MDUs

• Upstream undervalued in current

asymmetric model

• Social media moving to Video
• Family & Friends WANs

Note: * NZ 27th in Akamai rankings. Source: Akamai State of the Internet, Q4 2010.

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Takeup drivers: Business / Schools / Health

• High % SOHO in NZ
• Export-oriented businesses (19% of GDP)
• Corporate data quite expensive
• Regional WAN tails often <1Mbps
• Data centre infrastructure improving
• Cloud computing increasing
• Network for Learning
• National Health IT Plan
• Health clusters

UFB Candidate Areas & Partners

Whangarei

Auckland

Waiheke Island Pukekohe, Waiuku Tauranga Gisborne Taupo Queenstown New Plymouth Napier-Hastings Wanganui Palmerston North, Feilding Masterton Nelson Blenheim Greymouth

Christchurch

Ashburton Timaru Oamaru Dunedin Invercargill

UFB partnerships will cover all 33 candidate areas (75% of NZ population) by end 2019

Levin, Kapiti Tokoroa

Candidate Areas % of UFB

2 15.3 1 1.6 24 69.4 6 13.7 33 100.0

Rotorua Whakatane Rangiora Hamilton

Wellington

Hawera

• Whangarei: UNDERWAY
• 14km of Aerial deployment: ~450 premises
• 5km of Underground deployment: ~150 premises
• Initial customer connection: June/July 2011
• ~10 schools targeted this year
• Hamilton, Tauranga:
• Initial deployment: Hamilton/ Tauranga/ Wanganui

Q3 2011

• Service activation: Q4 2011
• Christchurch:
• Deployment expected to commence July 2011
• Auckland:
• Deployment expected to commence August 2011
• Other locations TBC but expected start in 2011

UFB Deployment: initial areas

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UFB Deployment: further areas

When is UFB Coming To My Neighbourhood?

• Roll-out region by region
• Focus on priority users (schools, health & business)
• Residential greenfields and brownfields sites also a priority

How Can I Get Fibre To My Greenfields Development?

• Register location on NZ Broadband Map
• Simply assists in planning; not an obligation to take any service

How Soon Will Fibre Be Deployed to Existing Residential Properties?

• Prudent to check with CFH or the relevant Local Fibre Company regarding

the deployment plan for your area

• Deployment plans and timelines are being progressively posted on CFH

website** as agreed

Note: * www.broadbandmap.govt.nz/map/ ** www.crownfibre.govt.nz/ (see Publications/ Resources)

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Deployment Comms:

Photos courtesy: Northpower.

Guiding Principles:

• Proactive engagement
• Timely provision of information
• Honouring commitments
• Risk identification & issue escalation
• Safety ethos

Typical communications:

• Community 0800 line, email & website
• Community awareness workshops
• Local advertising
• Fact sheets & flyer drops
• Thank you cards

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• Mix of P2P and PON topology:
• P2P Layer 1 and 2 services (mostly Corporate & Govt)
• GPON Layer 2 (mostly Residential / SME); Layer 1 2020
• Provision for additional future Fibre count:
• Higher proportion of P2P
• In-fill growth
• Future unbundling
• Civil engineering is key NZ challenge:
• Predominantly rock (volcanic)
• Mountainous
• Low urban density

Image credits: Northpower, CFH

Optimal Topology for NZ:

Mini- trenching trial, Wellington Northpower aerial deployment

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Residential SMEs Enterprise Schools Health Government

End Customers Retail Service Providers Layer 2 (lit fibre, copper ADSL) Access Layer 1

RSPs may take Layer 2 lit or Layer 1 P2P dark fibre services

• UFB GPON 100/50 Mbps
• UFB P2P 1G/10 Gbps
• UFB video transport

: 69% of UFB and 100% of copper (24 candidate areas) LFCs: 31% of UFB (9 candidate areas)

Retail

• UFB Fibre P2P
• Copper (UCLL)
• UFB Dark Fibre

P2P

• UFB GPON 100/50 Mbps
• UFB P2P 1Gbps, 10 Gbps
• UFB video transport
• Copper (ADSL & VDSL)

Network Providers

Industry Overview:

Retail Service Providers:

• Letters of Intent with indicative pricing
• Wholesale Services Agreement
• Service descriptions & prices
• Trials & pilots
• Demand mapping

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Getting Ready for UFB:

• Plan to lay ducts alongside other utilities in the build so that UFB can be

deployed as soon as it is available.

– A single conventional 100mm duct will suffice.

• Ensure requirements for UFB are known to Local Fibre Company/ Chorus.
• Within existing & new premises, use the TCF Premise Wiring code* to

ensure houses are capable of getting the most out of UFB.

• Consider future connectivity needs of owner-occupiers or tenants.

– UFB will be able to be delivered in the home by Wi-Fi; – Can use existing copper in the home for legacy services (POTS voice, alarming, fax, Sky TV authentication); – However, those wishing to enable the richest possible connectivity should invest in Cat 5e cabling, particularly for concrete or brick houses.

Reference:* http://www.tcf.org.nz/content/dc07abcd-21f8-4288-b55b-6f861bdd4d02.html

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• Broadband becoming fundamental to
• ur lifestyle:

– Now considered a human right in Finland!

• Properties with UFB access likely to

be more valuable to owner-occupiers and tenants than those without.

– US market research suggests Fibre To The Home will add US$2,500 to US$5,500 to the value of new houses.

Will UFB Add Value to Properties?

Source: Michael Render, RVA LLC, 2008.

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• UFB for remote working:

– NZ already has high rate of SOHO – UFB will allow High Defn Video Conference, Home WAN etc.

• UFB for home management:

– Smart grid to reduce energy use

• Fibre (GPON) has lower carbon

footprint than DSL copper

UFB & sustainability:

2004 2005 2006 2007 2008 2009 2010

Power consumption (watts per user)

Source: Alcatel Lucent, 2008.

UFB will help make our homes more sustainable

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Thank you – and time for questions

CFH contact: Rohan MacMahon, Strategy Director E: rohan.macmahon <at> crownfibre.govt.nz Ph: 09 912 1970 T: @rohmac