The Network Effect
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Transcript The Network Effect
Ethernet To The Home
© 2000, Cisco Systems, Inc.
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Ethernet To The Home
ETTH is aimed at serving residential and SMB customers located in Multi
Dwelling Unit with Ethernet connectivity
at a competitive price point and operating costs when compared to other
fiber to the building option
Always on connection
Fixed monthly cost (EU$ 50/month)
Two-way communication
The greatest potential: 100 Mbps
The cheapest: GE over fiber
© 2000, Cisco Systems, Inc.
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Business Proposition
Market Overview
WHAT
– ETTH for residential, SOHO and SMB
– Located in MxU
– Always on 10/100 Mbps Ethernet connectivity
– Companies, having gained the right to use conduits and fibers owned by
parent companies, which have digging permits
WHO
– Multi-utilities (Gas, Water, Power) operating in major Cities, who own the
land where the cables are laid
– > 60 cities in Europe have seen multiple operators deploying new metro
networks
– lighting dark fiber in metropolitan area networks (MANs)
– delivering Ethernet connections to newer buildings
HOW
– wiring building
– offering Ethernet, vast amounts of cheap bandwidth when compared with
DSL, cable, and wireless.
© 2000, Cisco Systems, Inc.
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Ethernet Price Trend
Ave Per Port Price US$
Ethernet Price Trend
1800
1600
1400
1200
1000
800
600
400
200
0
1996
Ethernet
FE
GE
1997
1998
1999
2000
Year
Ethernet Price Trend – Source Dell’Oro
© 2000, Cisco Systems, Inc.
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Cost of delivery bandwidth
Megabit/Port/Month/US$
10000
SONET
ATM
GE
1000
100
10
1998 1999 2000 2001 2002 2003 2004 2005
Year
SOURCE: BCR Sept, 2000 by Peter Sevcik, NetForecast, Waltham, MA
© 2000, Cisco Systems, Inc.
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Benefits
Customers, Owners and Content Providers
Value to the Consumers
Value to the Property Owners
High-speed access at the “first mile”
Increased value of the property
Always-on services (no slow dial, time-based billing)
Only one cable infrastructure to maintain
Voice for “flat fee” model
Property automation possible
Walk Away
1 or 10 GE on Metro Fiber Rings
Walk Away
Dataquest
© 2000, Cisco Systems, Inc.
E-commerce
Value for Content Partners
Communications/collaboration
Broadband content distribution
Customer relationship
management
Stimulate local content partners with niche exclusivity
Finance/accounting
Marketing possibilities on start page
Education/training
Customer information access
Human resources
Video and Internet Integration
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Internet Home Solutions
Family Management
Commerce
Communications
Home Control
and Security
Shared
Devices
Internet Access
© 2000, Cisco Systems, Inc.
Entertainment
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Next-Generation MAN
Traditional Telco network
Voice-oriented connectivity
ATM
Switch
MUX
Telco Central Office
MUX
PREDICTS2000
TELECOM
SONET
Ethernet
LAN
Dataquest
ATM
Switch
Ethernet
LAN
Telco Central Office
Next-generation IP over fiber network
using Ethernet and derivatives
up to gigabit speeds
Ethernet
LAN
Edge
Switch
Gig
WAN
Router
Gig
WAN
Router
Edge
Switch
Ethernet
LAN
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© 2000, Cisco Systems, Inc.
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Network Architecture Overview
Central Office
Local Content
Providers
GSR
Internet
Cisco 12000 Internet Routers
Distribution layer
Catalyst 6500
Access layer
3500-XL
with LX/LH, ZX
GBICs
Residential
CPE
10/100 Mbps to
each apartment
Gigabit Ethernet Links, SX, LX/LH, ZX on
Metro Fiber Rings
SOHO & SME
CPE 10/100 Mbps
Walk Away
Catalyst 3500 XL in the basement
© 2000, Cisco Systems, Inc.
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Single house
Set Top Box with 2
SCART connections
for the TV and VCR
10/100 Mbit/s
300 kbit/s per household
per Internet Access
Residential CPE
Star topology
Access Layer Switches
Catalyst 4006, Layer3 card
Port density per 4006: 192, 1 GE
Dedicated Ethernet ports
TV Ethernet
Internet Access
2xSTM-1 (1000 users)
Distribution Switch
Catalyst 4006, Layer3 card
Internet
Cisco 12000 Internet Routers or 7200
Service Network
Internet-VLAN
Service Network
TV-VLAN
ImagicTV
Server
© 2000, Cisco Systems, Inc.
Local Content
DHCP Server
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Double Rings Architecture
GBE ring
2nd level
DPT
GSR12000 Internet Routers
Long Haul
Metro/Regional
GBE ring
1st level
(POS or DPT)
Cisco 3512
GBE ring
2nd level
DPT
6509
Cisco 3512
Cisco 3512
GBE ring
2nd level
DPT
Cisco 3512
Cisco 3512
Cisco 3512
Cisco 3512
Cisco 3512
© 2000, Cisco Systems, Inc.
Cisco 3512
Cisco 3512
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Design Requirements
• Density of subscribers per metro area
• Deployment of content rich application such as video and voice
• High bandwith requirements
• Quality of Service
• Security
• Ease of Network Deployment and Upgrade
• Cost of Network Equipment
• Subscriber Authentication, Access Control and Billing
• High-Speed Link Failover Converge Time
• Use of Existing Cable Infrastructure
• Interface to Regional Telco Network and Internet
© 2000, Cisco Systems, Inc.
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Solution Benefits
Cost Effectiveness
New Revenue Streams
High Performance
Ease of Deployment
Investment Protection
© 2000, Cisco Systems, Inc.
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In-building connectivity
1. New UTP CAT-5 within the building
Drawback: no space for extra cable in the existing
C.O.
buildings, longest reach is 100 meters 802.3
2. New multi/mono mode fiber
GSR
Drawback: current issue with the copper based Ethernet
10/100 Mbps on Catalyst3500XL; E/O converters are
required adding 200$/user
3. Existing telephone copper pairs with
VDSL
3500-XLs
Catalyst 6500 L3 Switches
Gig Eth Links
Drawback: deregulation issues, normally owned by the
incumbent
4. 802.11 W-LAN coverage
Gig Eth Links
10/100 Mbps
CPE
SOHO
Drawback: requires frequencies and it has speed limits
(11 Mbit/s per cell)
5. MATV coax cabling with DOCSIS
© 2000, Cisco Systems, Inc.
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Full Optical in building wiring
Benefits
Simple to deploy
Flexible, it can fit well within the MDU and in the apartment
No FEXT/NEXT issues
Future-proof, easy upgrade to GE access
Unlimited bandwith
Quick user activation
Today: uses o/e converters
© 2000, Cisco Systems, Inc.
Cisco Products: coming with next Cat
3500XL-3
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Copper alternative: LRE
• Enables the use of Ethernet over existing,
unconditioned, telephone-grade wire
• Enables Ethernet to coexist with “plain old telephone
service” (POTS), Integrated Services Digital Network
(ISDN) or PBX signaling services
• Uses newest DSL coding and digital modulation
techniques with Ethernet
• Provides a point-to-point transmission that can deliver a
symmetrical, full-duplex, data rate of up to 15 Mbps
• LRE products are simple to install and interface with any
existing Ethernet solution
© 2000, Cisco Systems, Inc.
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Professional, SOHO & SME CPE
Cisco 1605: providing Low end routing capabilities.
The Cisco 1605 R router provides a 10BaseT and an
AUI port on the first Ethernet interface and a 10BaseT
port on the second Ethernet interface.
New
Cisco 1751: The one-port Ethernet WIC (WIC1ENET) offers customers the option of an additional
Ethernet port, allowing broadband Internet access or
deployment of a perimeter LAN or demilitarized zone
(DMZ). VoIP port availability.
Cisco 2611: providing entry level routing
capabilities with two Ethernet ports.VoIP port
availability.
Cisco 2621:providing entry level routing with two
10/100 Mbps auto-sensing Ethernet Port. VoIP port
availability.
New
Cisco 806: as low cost ethernet-to-ethernet IOS
router but it won't include VoIPproviding. You can
combine it with Komodo to enable Voice support.
Non CPE, a customer Desktop/Server, or a
customer LAN, can be directly connected to the E/FE
© 2000, Cisco Systems,
Inc.
10/100
port.
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Cisco Solution Benefits
Security
Quality of Services
Multicast Media Support
Subscriber Auhentication, Access Control and Billing
Link Resiliency
Node Scalability
Intelligent Network Services Benefits
© 2000, Cisco Systems, Inc.
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Residential Voice
• Access Zone: RAS functions
• Application Zone: Handles Residential Services
• Infrastructure Zone: Handles PSTN interface, Directory Gatekeeper (if needed), etc
Access Zone
Application Zone
Infrastructure Zone
NetSpeak
NetSpeak Route
Media Server
Server
Billing & Management
Servers
Cisco 12000 Internet Routers
Cisco GK
Cisco GK
C.O.
V
PSTN
NetSpeak
Residential GK
3500-XLs
Catalyst 6500 L3 Switches
Gig Eth Links
Gig Eth Links
Packet Network
Call Control
and Signaling
A must to have….but not a
business driver
10/100 Mbps
CPE
SOHO
© 2000, Cisco Systems, Inc.
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Typical Customer Video Bundle
•Video services are packaged into bundles…
Broadcast Video
~100 channel line-up, basic + premium tiers
Electronic Program Guide (EPG)
Web on TV and Interactive Video Enhancements
VOD, Pay-Per-View
Streaming Media Services
Ad Insertion
Personalized TV Capabilities
Rapidly becoming part of the bundle
…which in turn become part of overall service bundles including
voice, video and data
© 2000, Cisco Systems, Inc.
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