1. Next-Generation FTTH: Architectures and Enabling Components Rajeev Ram MIT Center for Integrated Photonic Systems In collaboration with Communications Futures Program

2. Industrial Group Members JDSUMotorola Nokia BTTelecom ItaliaAlphion Neophotonics Additional Contributors CorningLuminentVitesse NoveraIntuneVerizon CiscoBroadcomKAIST AT&T OvumInfinera UC BerkeleyLightwave Research Optical Broadband Working Group

3. FTTx Drivers Ever increasing demand for bandwidth, including IPTV Need to significantly lower network costs (rising faster than revenue) Rapidly advancing technology and declining equipment costs Public policy Standards

4. The Need for Speed

5. FTTX Deployment Status Worldwide deployment accelerating –11M subscribers in 2005 Asia leading in users, but other regions rapidly rolling out systems In the U.S., >1000 communities have FTTx service today –8M homes passed –1.3M subscribers, forecasted at >10M by 2011 In Europe, forecast for 49% CAGR from 2005-10 –25M Optical network terminals PON equipment sales of $965M in 2006, forecasted to be $2.4B in 2010

6. Small Businesses New Buried Development Splitter OLT ONT Splitter ONT Splitter ONT Splitter ONT 2.4 Gbps shared by up to 128 users 2.4 Gbps out 1.2 Gbps in 10-100 Mbps service rates 20 km reach 1 2 3 4 1 4 23 Today’s Advanced PON GPON Overview Time Division Multiplexing

7. ONT Today’s Advanced PON GPON Overview Power & Battery ONT Video Data POTS

8. ONT Today’s Advanced PON GPON Overview Power & Battery ONT Video Data POTS 1310 nm1490 nm DownstreamUpstream Voice and Data 1550 nm Video Voice and Data Bandwidths & Services

9. ONT Today’s Advanced PON GPON Overview Power & Battery ONT Video Data POTS 1310 nm1490 nm DownstreamUpstream Voice and Data 1550 nm Video Voice and Data Bandwidths & Services

10. ONT Today’s Advanced PON GPON Overview Power & Battery ONT Video Data POTS 1310 nm1490 nm DownstreamUpstream Voice and Data 1550 nm Video Voice and Data Bandwidths & Services

11. Fast Clockspeed Networks Convergence of telecom and access networks – a high volume market for high performance components –single frequency lasers & sensitive detectors –new leaders 10x scaling of manufacturing and assembly –More than 200k triplexers per month Driving new technologies for rapid deployment –Burst mode electronics (shared bandwidth components) –Broadband amplifier systems (reach extension to rural communities)

12. Metro Edge Optical Access Network WDM-PON GPON LR-PON Metro Core Next-Gen Broadband Architecture Options WDM PON: Dedicated wavelengths (high capacity) per user Long Reach PON: Consolidation of metro (telecom) and access networks

13. WDM-PON Metro Core Inventory Management for WDM PON –No bandwidth sharing on the transport layer –Flexible and simple Bandwidth/Subscriber allocation –Virtual POINT TO POINT (Secure Networks) –Physical POINT TO MULTIPOINT (Shared Fiber Infrastructure)

14. WDM-PON Metro Core Inventory Management for WDM PON Remote node in manhole Largest market for athermal ‘integrated’ wavelength filters

15. WDM-PON Metro Core Inventory Management for WDM PON Remote node in manhole Largest market for athermal ‘integrated’ wavelength filters How do you sell the same hardware to every user in a wavelength selective network ? ?

16. WDM-PON Metro Core Inventory Management for WDM PON Modulate and reflect light to CO w/ filtered white light w/o filtered white light Injection Locking (KT Field Trial) How do you sell the same hardware to every user in a wavelength selective network ?

17. Metro Edge Optical Access Network GPON LR-PON Metro Core Long-Reach PON Architecture Optical Amplifier 100 km reach1000:1 splitters Trade CapEx for OpEx: Fund edge components by closing down COs

18. MIT Modeling Activity Overview Demand Demographics Technological Constraints Operating Context Central Office Siting Splitter Siting Fiber Plant Siting Network Model Inputs Network Design Model Network Design Component Costs Labor Costs Resource Costs Network Constraints Network Cost Models Network CapEx Network OpEx

19. Network Design Model: Validation Scenario (1) BT(1) MIT(2) Corning(2) MIT Homes Passed 735372287133171176 Splitter Strategy Non-Cascaded 1x32 Cascaded 1x4 1x8 Data Rate (Gbps) 2.5 Reach (km) 1220 Central Offices 13 Route Length (km) 7587171035710658 Stage 1 Splitters 26329426342607 Stage 2 Splitters N/A 1065810283 Model Inputs Model Outputs

20. OpEx Involves Multiple Parameters Intrinsic Failure Modes Failure Mode FIT Rate Data Material Repair/Replace Costs Extrinsic Failure Modes Observed FIT Rate Data Man-hours to Repair/Replace Resource Costs Power Costs Rents Administrative Labor Model Input Parameters: Network Components: ONT Fiber Splitters OLT Connectors Splices Non-OLT Central Office Industry Data (Bottom-up) Field Data (Top-Down)

21. OpEx By Network Component $0 $10 $20 $30 $40 $50 $60 $70 $80 $90 (3)(4)(5) Annual OpEx per Subscriber CO Fiber Hardware 5km 20km 1x4,1x8 1x4,1x8 OpEx 52% Savings BCLR Total $77.59 Total $37.38

22. Access Networks Designed for Change Convergence of telecom and access networks –At the component level –At the architecture and network level –Drives working group discussions across the value chain Driving new technologies for rapid deployment –Drives MIT research WDM Optical Network Unit development Burst Mode Electronics (1000x enhancement demonstrated in 2006) High performance, low cost optical components (record performance amps) Network OpEx models for driving architecture designs