The Growth of Fiber Networks in India

Kuldeep Goyal
Chairman and Managing Director, g g , Bharat Sanchar Nigam Ltd., India
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24 March 2009 OFC / NFOEC 2009 Plenary Session San Diego, California

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Agenda
World and India India telecom BSNL Indias National Internet Backbone Broadband in India BSNL FTTH plan l Concluding Remarks g
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Land Area
North America India Africa

Copyright 2006 SASI Group (University of Sheffield) and Mark Newman (University of Michigan)

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Population
North America South America

West Europe Africa

China

India

Japan

Spring 2000 Copyright 2006 SASI Group (University of Sheffield) and Mark Newman (University of Michigan)

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GDP West North N th America Europe

Japan Japan

Source: UN 2004 Human Development Report. Copyright 2006 SASI Group (University of Sheffield) and Mark Newman (University of Michigan)

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Indias Economic Growth

The Indian economy has witnessed an unprecedented growth. Booming Indian services and industry sector are providing the required impetus to economic growth
India's GDP: 2002-07 700

8.4%

9.4%

USD Billion

Indias GDP witnessed high growth and was the second fastest growing GDP after China

600 500 400 300 200 100 0

8.5%

7.5%

4%
424 484 534

590

631

Fastest GDP growth of 9.4 percent in 2006-07, since last 18 years

Indian economy is the 4th largest in terms of PPP USD 4.1 trillion in 2006
700

2002-03

2003-04

GDP at Constant Prices

Contribution of Services - increased from 49 percent to 55 percent

2004-05

2005-06

2006-07

USD Billi ion

The sound performance of each industry segment is leading to the overall robust performance of the Indian economy

600 500 400 300 103 200 100 0 1999-00 2002-03 2005-06 Services Agriculture Industry 2006-07 205 223 104 109 91 319 347 155 116 168 117

Growth in sectors (2006-07): Industry: 10.9% Services: 11% Agriculture: 2.7%

Source: Evalueserve

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Telephone Lines (1990)

Copyright 2006 SASI Group (University of Sheffield) and Mark Newman (University of Michigan)

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Telephone Lines (2002)

Copyright 2006 SASI Group (University of Sheffield) and Mark Newman (University of Michigan)

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Televisions in use

Copyright 2006 SASI Group (University of Sheffield) and Mark Newman (University of Michigan)

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Cable TV subscribers

Copyright 2006 SASI Group (University of Sheffield) and Mark Newman (University of Michigan)

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Personal Computers

Copyright 2006 SASI Group (University of Sheffield) and Mark Newman (University of Michigan)

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Films Watched

India

Copyright 2006 SASI Group (University of Sheffield) and Mark Newman (University of Michigan)

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India Telecom
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Telecommunications in India
Growth of Telephone Connections
450 400
404.56

WIRELINE

WIRELESS

TOTAL
300.15 361.9

C Connections (In Millions) (

350 300 250 50 200 150 100 50 0 1997 99 1998 998 1999 999 2000 000 2001 00 2002 00 2003 003
42.84 33.69 52.22 46.19 50.18 48.87

> 100M new wireless subscribers per year

76.53

206.83

256.20

140.32 98.41 90.14 157.96

43.95

42.66

2004 00

2005 005

2006 006

2007 00

2008 008

Ja 09 Jan-09

Year (as on 31st March)

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BSNL

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BSNL Company Profile

Name : BHARAT SANCHAR NIGAM LIMITED (A Government of India Enterprise) Date of Incorporation : 1st October 2000 Customer Base Annual Revenue Annual Profit Human Recourses : : : : : : : : 78 Millions $9B $ 0.7 B 07 1,600 52,120 244410 298130 Top management Middle management Work force (Total)

Service Area

All of INDIA except Delhi and Mumbai 37,808 All on reliable media 44 M
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Telephone Exchanges : GSM Customers :

BSNL Company Profile(contd.)

Broadband customer : 3.2 M , 54.4% Market share (BSNL is India s largest Indias broadband service provider) Village Public Telephones Transmission network : : : : : : 550,000 Villages out of 600K Villages OFC :550 K RKMs M/W / :64 K RKMs. Satellite Stations : 232 DWDMs in Core : 80G, 400G DWDMs Local : 120G

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BSNL OFC in Backhaul

The Nerves of INDIA

550K RKm Core OFC 6F/12F/24F

>40K RKm Adding Every Year now BSNL Covers ALL Districts of INDIA with Fiber
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Profile (Contd)
Services Offering : : : : : : : : : : Basic Wire line Telephony GSM Mobile Services 3G Mobile Services Fixed Wireless Services National Long Distance Services International Long Distance Services Broadband Services & Internet services IN services viz. Pre paid Calling cards etc VSAT Next Generation Play (over FTTH)

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Indias National Internet Backbone - an IP MPLS Core network

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National Internet Backbone in Metros

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National Internet Backbone

STM-16 LINK A1 Router Cisco 12416 A2 Router Cisco 12410 A3 Router Cisco 12410 Jullundar Jaipur Lucknow Patna
A1 Nodes - 5 A2+A3 Nodes - 9

STM 16 Link

Ahmedabad Delhi Kolkata K lk t Indore Mumbai

Chennai Pune Bangalore

Hyderabad

Ernakulam 23

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National Internet Backbone

LEGENDS STM-16 LINK STM-1 LINK
Si

A1 Nodes - 5 Allahabad
Si

CISCO ROUTER
Si

A2+A3 Nodes - 9 A4 Nodes - 10

Chandigarh

JUNIPER ROUTER (Existing with BSNL)

Jullundar Jaipur

Lucknow Patna

Si

Guwahati

Si

Ranchi Ahmedabad
Si

Delhi Kolkata K lk t Mumbai

Si

Indore

Manglore l

Bhubneshwar

Si

Nagpur

Pune

Banglore

Chennai
Ernakulam

Si

Coimbtore

Si

Hyderabad

Si

Vijaywada Vij d

Raipur

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MNGT Network MPLS Based Next-generation Technology

Metro Cities Bigger L-1 TAX Intermediate Locations

Metro and State Capitals Connectivity over 10G

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Broadband in India

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Current Broadband Market in India

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Bandwidth Limitations of ADSL

Distance Theoretical Bandwidth (Mb ) B d id h (Mbps) 0.5 km 1 km 3 km 6 km ADSL2 + 24 18 16 9 2 VDSL2 (FTTN) >50 32 26 PON (FTTH) >100 >100 >100 >100 >100
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BSNLs FTTH Plan

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FTTH Market Outlook Worldwide

Source: Light Reading research

By 2011, five percent of all households worldwide have fiber. This growth will be dominated by Asia, growing to 59 million by the end of 2011. h d f2 Over a longer timeframe, the copper access network will be largely replaced by fiber
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Economies with highest penetration of FTTx

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Key drivers for BSNL to deploy FTTx

Main Drivers
Intense Competition
Voice revenue keep on declining Many new players with new innovative business models are disrupting the tradition telecom market

Goals
Revenue growth

$$$

New I N Innovative S i ti Services

VoIP/IPTV/Multi-Media Multi-Play services

Cost Reduction
Network rationalisation Rationalization of platform & business processes New services and lower CAPEX/OPEX

FTTx Network Evolution

Current OPEX

Cost savings

Government Encouragement
To raise the national competitiveness Positive P iti social impact i li t

Structurally Lower OPEX

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Next Generation Play Network

BSNL i d l i is deploying Next Generation Play Network based on GPON and GE-PON to provide true broadband access to p 700,000 customers.

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Next Generation Play Network y

The network technology is GPON and GE-PON GPON: 2.5 Gbps downstream and 1.25 Gbps upstream GE-PON: 1.0 Gbps upstream as well as downstream Single fibre serves 32 customers Phase I: 700 000 customers 700,000 customers. 550,000 customers based on GPON 150,000 customers based on GE-PON , 28 A-Grade cities will use GPON 77 B-Grade cities will use GE-PON
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Next Generation Play Network - Wholesale

GSM (2G/3G) backhaul WiMAX backhaul ADSL backhaul CUG backhaul Video backhaul for CATV service

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GPON for Cellular Backhaul

Optimal for TDM and high-bandwidth data services Supports both 2G and 3G cellular backhaul

FTTB
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GPON as WiMax Backhaul

GPON OLT is the aggregation node for the WiMax BaseStations
To Core Network ODU ONT Splitter BaseStation A ODU BaseStation A ODU BaseStation B BaseStation B BaseStation C BaseStation C ONT ONT GPON OLT nx1GbE/nx10GbE

GPON provides Fiber connection between the WiMAX BaseStation and the Core Network
Some of the graphics are from : www.telsima.com, Datasheet_6400.pdf

ONT connects to BaseStation via100BaseT or 1000Base-T

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Next Generation Play Services - Bandwidth

SDTV HDTV Basic HIS Gaming Multimedia surfing 2 Mbps/ Chl 7-20 Mbps/ Chl 5 Mbps average p g 3 Mbps/ session 8 Mbps average Video Conferencing Video Conferencing 3 Mbps/ session Home Monitoring Home working Internet TV, Personal TV 3 Mbps/ session 1 Mbps per call 3 Mbps average 1 Mbps /session SDTV

20 Mbps

2 Mbps 5 Mbps average

Basic HIS

Gaming Multimedia surfing

2 Mbps/ session 3 Mbps/ session

Home working

4 Mbps average

45 Mbps

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The Passive Optical Network

MDU ONT

Passive Optical Splitter

SFU ONT

Optical Line Terminal

SBU ONT
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BSNL FTTH Architecture

CPE ODN
CATV

Access
OSS

Aggregation
EMS

IP Core

Services

RF Video Transmitter
EDFA STB

NIB-II IP/MPLS Backbone

IPTV Server Middleware

IPTV PC HSI

GPON ONT

WDM

Router

Phone STB

splitter
VOICE

ODF
GE/ 10GE

Internet BNG

IPTV PC HSI

GPON ONT
RF Video

GPON OLT

Softswitch DHCP Server

3rd Party Servers (tele-presence, gaming)

10GE

Phone

VOICE BSNL

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FTTH Multiplay service offerings

High-speed Internet Access High Definition IPTV g Video on Demand (VoD) Bandwidth on Demand Remote Education Point to Point and Point to Multi -point Video Conferencing Voice and Video Telephony over IP Interactive Gaming Virtual Private Networks (VPN)
ALL over a single unified packet-based multi-service network

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FTTH Pilot in Bangalore

Central office - OLT
Power Distribution Unit WDMs GPON OLT

Passive splitter in building wiring cabinet i i bi t

Triple l T i l play at the home - ONT h h

Ethernet Switch GPON Home ONT

Video Transmitter + Fiber Amplifier

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FTTx Plan upto 2015

20 18

M Fibre fo FTTx Laid or L

14.9 14 9

19

FTTx Fibre M- Km M

16 14 12 10 8 6 4 2 0

10.9 6.9 3.8 38 5

3.2

2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15

Year
BSNL is laying FTTx Of 48F/96F/288F OFC As OAN (Overlay Access Network) since Last five years
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FTTx Projections
Customer Buildup (M)
8 7 6 5 4 3 2 2 1 0 2009 2010 2011 2012 2013 2014 2015 0.7 0.7 1.3 1 1 1 1 1 4 3 6 5

Annual Expansion Plan Total FTTH Customers

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Concluding Remarks
The vitality of the Indian Telecom marketplace is unrivaled. BSNL is poised to leverage its dark fiber fib assets for FTTH, wireless f i l backhaul, rural broadband and National Internet Backbone. Recent launch of 3G and the expected launch of rural broadband & FTTH services make BSNL truly a world leading multi-service provider. multi service provider
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Thank you

THANK YOU

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