Transcript Local Loop Unbundling (LLU)

NATIONAL TECHNICAL UNIVERSITY OF ATHENS
Electrical & Computer Engineering School
LIBERALISATION & REGULATION IN THE
ELECTRONIC COMMUNICATIONS SECTOR
LOCAL LOOP UNBUNDLING
LLU
http://www.netmode.ntua.gr/
Courses/Graduate/Liberalization & Regulation in
the Telecommunication Sector
Vasilis Maglaris <[email protected]>
Vassilis Merekoulias <[email protected]>
NATIONAL TECHNICAL UNIVERSITY OF ATHENS
Electrical & Computer Engineering School
AIMS
• To brake the last “Monopoly Bottleneck” i.e. the
Subscriber Access
• To encourage Fast Internet Service to the Home (xDSL –
Digital Subsriber Loop)
• To enable Provision of High Volume – High Speed
Content (Video on Demand, Peer-to-Peer Applications :
Sharing of Music / Video Files, Video / Audio
Conferencing)
• Alternative technologies : Wireless (fixed LMDS, 3G
Mobile UMTS), Fiber to the Customer, (Power Lines ? )
July 2008
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NATIONAL TECHNICAL UNIVERSITY OF ATHENS
Electrical & Computer Engineering School
REGULATORY FRAMEWORK
• Regulation 2887/2000 (18/12/2000) – European
Parliament / Counsil : Obligatory
• Incumbents to provide full or shared Copper Local Loop
or Sub-Loop Access to Competitors for Telephony & DSL
(Fast Internet)
• Local Loop: From Main Distribution Frame (MDF) to
Subscriber
• Sub-Loop: From Local Concentration Point to Subscriber
(fiber to the curb installed by incumbents ?)
July 2008
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NATIONAL TECHNICAL UNIVERSITY OF ATHENS
Electrical & Computer Engineering School
REGULATORY FRAMEWORK
• Incumbents to publish Reference Unbundling
Offer (RUO) by 1/1/2001 !!
• Charge of LL and Collocation: Cost Based
– LRIC or FDC model ?
– E.U. LL Monthly Charge :
• 10 - 20 Euros / month / loop (passive copper loop)
• Three Models : Full, Shared, Bit-stream
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NATIONAL TECHNICAL UNIVERSITY OF ATHENS
Electrical & Computer Engineering School
FULL UNBUNDLED LOCAL LOOP
New local loop to provide
high speed xDSL Access
Incumbent
Incumbent
Local
Switch
LocalSwitch
EU Unbundled Local Loop
Incumbent
Incumbent
Local
Switch
LocalSwitch

Local
Loop
Main
Main
Distribution
Distribution
Frame
Frame

xDSL
xDSL
Modem
Modem
Link Reconfigured
PC
PC
New
Entrant
NewEntrant
Local
Switch
LocalSwitch
July 2008
Phone
Phone
Network
Network
Phone
Phone
Network
Network
Main
Main
Distribution
Distribution
Frame
Frame
New
Entrant
NewEntrant
DSL
Access
DSLAccess
Multiplex
Multiplex
DSLAM
DSLAM
Phone
Phone
Network
Network
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NATIONAL TECHNICAL UNIVERSITY OF ATHENS
Electrical & Computer Engineering School
SHARED LOCAL LOOP ACCESS
Shared Access use of 'Splitter'
Incumbent
Incumbent
Local
LocalSwitch
Switch
Splitter/
Microsplitter

Local
Loop
xDSL
xDSL
Modem
Modem
PC
PC
July 2008
Main
Main
Distribution
Distribution
Frame
Frame
Phone
Phone
Network
Network
Splitter
New
NewEntrant
Entrant
DSL
Access
DSL Access
Multiplex
Multiplex
DSLAM
DSLAM
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NATIONAL TECHNICAL UNIVERSITY OF ATHENS
Electrical & Computer Engineering School
BIT-STREAM SERVICE
Incumbent
Incumbent
Local
LocalSwitch
Switch

Splitter/
Microsplitter
Local
Loop
xDSL
xDSL
Modem
Modem
PC
PC
July 2008
Phone
Phone
Network
Network
Bit stream access
Main
Main
Distribution
Distribution
Frame
Frame
Splitter
Incumbent
Incumbent
DSL
DSLAccess
Access
Multiplex
Multiplex
DSLAM
DSLAM
Transmission
service (optional)
New
New
Entrant
Entrant
Network
Network
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NATIONAL TECHNICAL UNIVERSITY OF ATHENS
Electrical & Computer Engineering School
ADSL TECHNOLOGIES
• Upstream Speed: 256, 384, 768, 1024 Kbps
• Downstream Speed: 760 Kbps, 1.5 – 24 Mbps
• Voice Telephony (Analog – ISDN) shares the 2-wire Local Loop
(Splitters)
• DSLAM (DSL Access Module):
– Upstream (to subsribers): Broadband IP
– Downstream (to backbone services)
• ATM VPs / SDH Add-Drop Multiplexers (ADM)
• RAS - SSG: Remote Access Server - Service Selection
Gateway
• ISP – Internet Service Providers (ISPs), AAA: Authentication,
Authorization & Accounting
• Content providers (Video Servers, Streaming, MCUs, …)
July 2008
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NATIONAL TECHNICAL UNIVERSITY OF ATHENS
Electrical & Computer Engineering School
ADSL CONCEPTS
Suscribers
Web
Video
Server Server
Video
Streaming
V/C
VoIP
MCU Gateway
ΙΝΤΕRΝΕΤ
Radius
ADM
DSLAM
Switch
RAS
(SSG)
155 Mbps
(VP16 Mbps)
ADM
155 Mbps
(VPs 16, 20, 34
Mbps)
Subscribers
AAA
ATM/SDH 20 Mbps
2-wire Local
Loop
ADM
ADM
DSLAM
July 2008
155 Mbps
(VP 34 Mbps)
IP router
Ethernet
ATM Switch
ISP
ADSL
Modem
Splitter
ATM Switch
Subscribers
DSLAM
Subscriber
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NATIONAL TECHNICAL UNIVERSITY OF ATHENS
Electrical & Computer Engineering School
ADSL BUSINESS MODEL
• Depends on LLU, Collocation
• Residential Customer Monthly Charge : 20
Euros/month (including ISP)
• Driving force (presently) : Fast Internet (always ON,
peer-to-peer applications)
• Future : Video broadcasts, tele-teaching, entertainment,
video games etc.
• Problems : Lack of content, limited throughput of ISPs
(bakcbone networks become the bottleneck)
July 2008
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NATIONAL TECHNICAL UNIVERSITY OF ATHENS
Electrical & Computer Engineering School
July 2008
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NATIONAL TECHNICAL UNIVERSITY OF ATHENS
Electrical & Computer Engineering School
LIBERALISATION & REGULATION IN THE
ELECTRONIC COMMUNICATIONS SECTOR
Universal Service Obligation
http://www.netmode.ntua.gr/
Courses/Graduate/Liberalization & Regulation in
the Telecommunication Sector
Vasilis Maglaris <[email protected]>
Vassilis Merekoulias <[email protected]>
NATIONAL TECHNICAL UNIVERSITY OF ATHENS
Electrical & Computer Engineering School
Overview of presentation
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History of USO.
Which Services.
How is Supported.
What is the Cost of providing USO?
Non profitable areas, users, booths.
The next genaration services and USO.
July 2008
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NATIONAL TECHNICAL UNIVERSITY OF ATHENS
Electrical & Computer Engineering School
History
• USO and Competition
• The first use of the term Universal Service:
‘One system, one policy, universal
service’ (Theodore Vail, President, AT&T)
• Universal Access
July 2008
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NATIONAL TECHNICAL UNIVERSITY OF ATHENS
Electrical & Computer Engineering School
Which services?
• Basic POTS
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Basic Telephony with standard quality
Free access to emergencies
Catalog services
Card and coin phones
Operator assistance
• Reasonable prices
– One price list for the entire country
– Soft disconnection
– Special prices for low usage users
• Services for special groups
– Special devices for such groups
– Special Telephone booths
July 2008
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NATIONAL TECHNICAL UNIVERSITY OF ATHENS
Electrical & Computer Engineering School
How is USO supported?
• Pay or Play
• Balance between extended and basic services
• Information Society throughout the country vs.
high cost/price
• Financial support
– Special fund supported from the e-communication
sector
– Mark – up on interconnection services
– National Funds
– Auctions
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NATIONAL TECHNICAL UNIVERSITY OF ATHENS
Electrical & Computer Engineering School
Basic USO Properties
• Dynamic concept changing as services
extend
• Indexes needed for the level of services
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NATIONAL TECHNICAL UNIVERSITY OF ATHENS
Electrical & Computer Engineering School
USO Cost
• USO Cost = Cost of services – Non
financial benefits (advertisement, brand
name etc.)
• Cost of services = Financial benefits –
Long run avoidable cost
• Non financial benefits
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Brand name recognition, reputation
Access to usage data and customers habits
Customer cycle (a non profitable turns to profitable)
Economies of scale
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NATIONAL TECHNICAL UNIVERSITY OF ATHENS
Electrical & Computer Engineering School
Methodology for recognition of
non profitable areas
• Classes/Zones of areas based on density
• Modeling of a typical customer access line for
each area based on:
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July 2008
Mean length of the local loop (“Last mile”)
Type of cables, technologies used
Demographical data
Equipment used for different types of landscape
and density
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NATIONAL TECHNICAL UNIVERSITY OF ATHENS
Electrical & Computer Engineering School
Methodology for recognition of
non profitable areas
• Network usage cost for each class
• Financial benefits for each area for:
– Monthly rental
– Network usage
• Net cost calculation for each class
• Adjustment for non financial benefits
• Non profitable areas recognition
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NATIONAL TECHNICAL UNIVERSITY OF ATHENS
Electrical & Computer Engineering School
Methodology for recognition of
non profitable users
• No data available to model non
profitable users in a profitable area.
• Calculation based on a rule of thumb
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NATIONAL TECHNICAL UNIVERSITY OF ATHENS
Electrical & Computer Engineering School
Methodology for recognition of non
profitable telephone booths
• Similar methodology with the non profitable
areas
• Data needed:
– Investment cost
– Usage statistics for the telephone booths
– Operating cost
July 2008
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NATIONAL TECHNICAL UNIVERSITY OF ATHENS
Electrical & Computer Engineering School
USO & Information Society
• Internet Access
• DSL Services
• Fiber to the Home – Fiber to the Curb
July 2008
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NATIONAL TECHNICAL UNIVERSITY OF ATHENS
Electrical & Computer Engineering School
LIBERALISATION & REGULATION IN THE
ELECTRONIC COMMUNICATIONS SECTOR
IP Market Structure based on
Traffic Characteristics
http://www.netmode.ntua.gr/
Courses/Graduate/Liberalization & Regulation in
the Telecommunication Sector
Vasilis Maglaris <[email protected]>
Vassilis Merekoulias <[email protected]>
NATIONAL TECHNICAL UNIVERSITY OF ATHENS
Electrical & Computer Engineering School
IP traffic – market structure –
network provisioning
• IP traffic and multiplexing. Gain as the number
of users/customers increase.
• Multiplexing and the structure of the market
– Vertical Market.
– Small number of big ISPs.
– Provisioning of services in small cities is unprofitable
July 2008
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NATIONAL TECHNICAL UNIVERSITY OF ATHENS
Electrical & Computer Engineering School
Market size, need for aggregation
• On – off 1% duty time (max = 100 x average)
• No Buffering or 100ms buffering
Sources 100 – peak 8,4Mbps – utilization 12%
Sources 100 – peak 4,4Mbps – utilization 23%
Sources 1000 – peak 30Mbs – utilization 33%
Sources 1000 – peak 17Mbs – utilization 59%
Sources 10000 – peak 170Mbps – utilization 59%
Sources 10000 – peak 120Mbps – utilization 83%
• Effective provisioning > 5000 customers (20% on-line)
July 2008
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NATIONAL TECHNICAL UNIVERSITY OF ATHENS
Electrical & Computer Engineering School
ISPs Market based on dial up
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Big number of ISPs
Provisioning to isolated areas, small cities.
Dial-up users => max 56kbps
On – off 30% duty time (max = 3,3 x average)
Sources 700 – peal 8,7Mbps – utilization 80%
• !!Provisioning is profitable for a small number
of customers!!
• Income for the ISPs from the regulatory
framework.
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NATIONAL TECHNICAL UNIVERSITY OF ATHENS
Electrical & Computer Engineering School
Introducing xDSL
• Access bottleneck removed. The customer – user
can have an average of 50kbps with 1Mbps peak
(1/20)
• New customes. Allways-on, p2p.
• How does p2p traffic look like?
– Q1 2002 51% of the abilene traffic + 18% unidentified
of a total of 157,6Tbytes/week
– 60% for the NRNs
– Today (2003) 13,82% p2p + 44% unidentified of a total
of 271Tbytes/week (new apps, hide p2p apps)
– P2P Signaling traffic is NOT Self Similar (good news)
July 2008
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NATIONAL TECHNICAL UNIVERSITY OF ATHENS
Electrical & Computer Engineering School
xDSL – Market Structure
• 2000 concurrent xDSL users (~10000 customers)
for effective provisioning!!!!
• Is it possible to provide services in small
communities?
• Vertical market.
• Regulation is needed!!! Where is the
Interconnection of xDSL Access with the ISPs
taking place?
• Cost of national core networks is critical for
competition.
July 2008
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NATIONAL TECHNICAL UNIVERSITY OF ATHENS
Electrical & Computer Engineering School
What’s next?
• Need to understand the traffic
characteristics of p2p networks (not only
signalling but file transfers too).
• A model to calculate the number of
customers for effective provisioning.
• Scenarios for the interconnection points,
cost of core network, regulation initiatives.
• Municipality nets.
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