1. The Importance of the Management Plane for FTTP A Perspective of a USA Service Provider

2. The Telecom Industry is Changing Last Year Marked a significant Change in the Telecommunications Industry in the USA Traditional Wireline companies saw a loss in overall access lines, despite an overall gain in Homes Passed The oldest telecommunications company in the world, left telecom as a technology and evolved to merge with Cable as a transport Users appetite for bandwidth is accelerating MOBILITY HAS BECOME THE PARADIGM

3. A USA Perspective 160 Million Americans have Mobile Phones 24 Million have 1st Generation Broadband connection Wireless Networks are allowing Broadband on the Go Picture/Camera Phones outsold every other phone type in the USA

4. Broadband + Mobility = Transformation

5. Goal in the Industry Goal is to deliver 100Mbs capacity to the customer, no matter where they are, at home, at work, or on the go.

6. Where do we get there from here? Reinventing our networks around broadband, packet and Voice over IP technologies Vision is of an integrated Multi-megabit network that will fuel the growth of high- technology industry

7. Some Statistics 46 Million of our telephone lines are equipped for DSL More than 36 Million people each day use Verizon Wireless Serve over 7 Million Small Businesses and over 80% of the Fortune 1000 Over 100 Million people uses Verizon Networks every day Currently support over 2 Billion Peer-to-Peer connections every day

8. Key to survival in a transitioning market Deploy leading edge technology High on the bandwidth chain Good Service Great Value Proposition

9. What is FTTP? Fiber To The x (FTTx, with x being the C for the Curb, or P for to the premises) is an important, emerging technology that will provide customers with new feature-rich services and improved quality of current services.

10. Why FTTP? Why Now? Is FTTP the answer?

11. Why FTTP? Consumers will require additional bandwidth to the home in the near future Competition is beginning to offer a triple-play (i.e., voice, video, and data) bundle FTTP provides SPs with the ability to provide cutting edge technology and best-in-class services Deploying a fiber optic cable to each premises will provide an extraordinary amount of bandwidth for future services An FTTP based network will result in less operational expenses

12. Why FTTP? (Contd) Access Bandwidth Growth 2.4 – 56K ISDN 144K ADSL 256K – 1.5M 1.5M – 3M Cable Modem 12 – 25M ADSL2(+) 12 - 50M VDSL 100M DDS 1970s FTTP 2004 Today's applications are continuing to drive demand for increased bandwidth Historically, unforeseen applications have quickly consumed available bandwidth and driven the development of higher speed platforms FTTP has the necessary bandwidth to support near term and long term services

13. Why Now? (Contd) SPs are losing access lines Bundling with the triple-play should reduce the churn Competition with cable providers is forcing action Cable Modems currently have over 60% of the HSD market share and the gap is expected to increase Cable companies are beginning to offer voice over cable A number of IP telephony trials are currently underway: Time Warner in Portland, ME Comcast in Coatesville, PA Cablevision in LI / NJ Experience suggests that cable will be very successful, absent an effective competitive response.

14. Matching Application and Network Requirements High Speed Internet Access (browsing, IM, Chat, FTP, VPN, access, etc) Up to 3 Mb/s E-MailAs above Live TV on PC300 to 750 kb/s Internet Video on Demand300 to 750 kb/s Video Conferencing300 to 750 kb/s Voice telephony5 to 128 kb/s Interactive Games10 to 750 kb/s Broadcast TV – ( e.g., MPEG2) 2 to 6 Mb/s High definition TV – HDTV12 to 19 Mb/s Pay Per View and NVOD ( e.g., MPEG2) 2 to 6 Mb/s Data ApplicationTypical bandwidth (downstream)

15. Deployment of FTTH Plan is to reach 1 Million Homes by end of 2004 in the 20Mb to 30Mb rate Double that rate as we move into 2005 Reach 100Mb by 2007

16. Common Protocol Common Infrastructure Picture Messaging Voice Data Video Service Voice over IP Virtual Private Network Video Conferencing Gaming

17. FTTP Basics Full Service Access Network (FSAN) – Primary source of PON standards. Created by service providers in order to facilitate suitable standards. FSAN Standards – ITU-T G.983 Passive Optical Network (PON) – a point-to-multipoint local access Network. Optical Line Terminal (OLT) – active component typically located in the central office. Passive Optical Splitter – distributes optical signal from a single fiber to multiple fibers, merges signals from all fibers, & connects them to the OLT receiver. Optical Network Terminal (ONT) – housed in a network interface device enclosure.

18. FTTP Lingo PON – Passive Optical Network OLT – Optical Line Terminal ONT – Optical Network Terminal FTTP – Fiber to the Premises APON – ATM PON BPON – Broadband PON GPON – Gigabit PON

19. PON Architecture FSAN Standard ITU G.983 OLT (Optical Line Terminal) ONT (Optical Network Terminal) Downstream 1490 nm Upstream 1310 nm 1490nm/1310nm, 1550nm Video ( ) Data (AAL5) POTS (AAL2) Voice & Data Voice/Data & Video Optical Splitter EDFA (Erbium Doped Fiber Amplifier) 1310 nm1490 nm DownstreamUpstream Voice and Data @ 622 Mbps 1550 nm Video Digital TVAnalog TV HD/VOD 550 MHz860 MHz42 MHz Voice and Data @ 155 to 622 Mbps Bandwidths & Services 1x32 Optical Couplers (WDM) Video 1550 nm

20. FSAN PON Solution How Does an APON/BPON Work? ONT A B C ABC + GRANT ABC + ABC + ABC + ONT A B C A Upstream: Time Division Multiple Access Downstream: Time Division Multiplex Downstream: 622 Mbps @ 1490nm Upstream: 155 Mbps @ 1310nm Outside Plant: Optical Distribution Network Customer Premise: ONT (Optical Network Termination) CO, Feeder: OLT (Optical Line Termination) ATM switch, PSTN, Internet Services to user: POTS, Internet Access Passive Optical Splitter

21. Current Standards

22. FCC 76.605 - Multichannel Video and Cable Television Service Requirements, Technical Standards. Code of Federal Regulations, Title 47, Volume 4, Part 76, Subpart K, Section 76.605 (47CFR76.605). ITU-T Recommendation G.983.1 - Broadband optical access systems based on Passive Optical Networks (PON).

23. Current Standards ITU-T Recommendation G.983.1amd1 - Broadband optical access systems based on Passive Optical Networks (PON) amendment 1. ITU-T Recommendation G.983.1amd2 - Broadband optical access systems based on Passive Optical Networks (PON) amendment 2

24. Current Standards ITU-T Recommendation G.983.2 - The ONT management interface specification for B- PON. ITU-T Recommendation G.983.3 amd1 - A Broadband optical access systems with increased service capability by wavelength allocation amendment1. ITU-T Recommendation G.983.4 - A Broadband optical access system with increased service capability using dynamic bandwidth assignment.

25. Current Standards ITU-T Recommendation G.983.5 - A Broadband optical access system with increased survivability ITU-T Recommendation G.983.6 - ONT management and control management interface specification with protection features ITU-T Recommendation G.983.7 - ONT management and control management interface specification for DBA B-PON systems

26. Current Standards Telcordia technologies GR909 - Generic Criteria for Fiber in the Loop systems. TR-TSY-000008 - Digital Interface Between the SLC-96 Digital Loop Carrier System and a Local Digital Switch, Issue 2, 8/87, Revision 1, 10/94

27. Current Standards GR-303-CORE - Integrated Digital Loop Carrier Generic Requirements, Objectives and Interface, Issue 4, 12/2000 GR-57-CORE - Telcordia – Functional Criteria for Digital Loop Carrier Systems, Issue 1, 10/01 TSGR, FR-440 - Telcordia (Bellcore) Transmission System Generic Requirements

28. SO, What is missing? No Standards currently exist for the Service Management or Network Management of Co-merged networks

29. What is Needed? Requirements for Service Management Common Protocol-neutral models of these interfaces Common agreed upon Protocols to support the Service and Network Management Interfaces

30. Common Protocol Common Infrastructure Picture Messaging Voice Data Video Service Voice over IP Virtual Private Network Video Conferencing Gaming Standards will drive the speed with which newer technologies can be delivered

31. So what areas do these new standards need to cover?

32. A brief look at a Verizon answer to that Question Iobi and Verizon-one

33. How do we create this new set of Service Management Standards? Rethink the applicability of our current B2B models for SP to SP operations Begin aggressively the development of C2B interfaces by Focusing on requirements Evaluate the applicability of current standards Understand the Value Proposition of standards in this area

34. Additional Considerations Home Network Selection is currently ill defined in terms of a practical solution to support all data types Current Home Gateways do not offer the security needed to support the multi-SAP models QoS models and requirements are not defined for all Home Networks or Gateways