1. Economic and field evaluation of modular cabling techniques in the Belgacom network

2. 1. Introduction Belgacom’s future network structure 2. Modular cabling systems - Technical evaluation - introduction - product description - competing technologies - network concept 3. Modular cabling systems - Economical evaluation - investment analysis - present value approach - inv / npv results

3. 1. Introduction Belgacom’s future network structure

4. NB services I-TMNI-TMN IN Server SDH SAP LC/LDC SAP SDH DP A/HDSL PON WLL Clients SL SW TR SAP AN CPE COAX TV DP DP (Network Interworking) DP TV ATM PON 4 BELGACOM’s NETWORKARCHITECTURES EVOLUTION

5. Clients ON SDH Local Clients SDH Local ON Clients SDH Client OVERVIEW FSAN SDH BACKBONE O & M ON PFS Switch Management System SDH Node SDH Optical Node FH PFS Pulling Fibre System Wireless In The Loop O & M FH - SDH SWI V5 PFS ON LC ZC Clients PFS GATEWAYS

6. BELGACOM’s NETWORKARCHITECTURES EVOLUTION ARCHITECTURE ON RING ADM4 OMDFOMDF Backbone 36F ADM4 OMDFOMDF ADM4 OMDF ADM4 OMDF 4v - 1T 8v- 2T Reserve 1T Ring 36 F.O. ON XXX ON XXZ ON XXY

7. BELGACOM’s NETWORKARCHITECTURES EVOLUTION ARCHITECTURE DISTRIBUTION RING ADM4 ADM1 2MB - G703 -PRA ADM1 ATM client R-MUX LL SYRAR ADMØ POTS ISDN client ADM1ADM1 POTS ISDN ADMØADMØ client 4 F - T 9 4 F - T 8 ON 4 F - T 7 4 F - T 6 4 F - T 1 4 F - T 6 4 F - T 7 Boucle 36 F.O.

8. BELGACOM’s NETWORKARCHITECTURES EVOLUTION DISTRIBUTION F.O. : OSP 1 Splice hole per 2 clients O N DISTRIBUTION RING TELEZONE = Splice hole X Client 2 ducts

9. BELGACOM’s NETWORKARCHITECTURES EVOLUTION DISTRIBUTION F.O. : ALTERNATIVE Pulling Fibre System (PFS) MICROLIGHT - S.A. VULCAN MAINETTIE : ducts RAYCHEM: splices,... OPTICAL FIBRE: fibres Pilot projects in 1996 Fine tuning of the system : 02/97 Commercial projects : 1Q98 Volume Deployment : 3Q98 ! DUCTS *no more splice holes *cheaper splicing technology = copper *installation of the fibres when there is a new customer ==> ROI 

10. 2. Modular Cabling Systems Technical Evaluation

11. Modular cabling systems Technical evaluation product description manufacturers competing technologies network concept field trial(s)

12. Modular cabling systems product description multi- tube system : 2/4/7/19-way direct buried version direct installed version multi-fibre units : 2/4/8 fibre units installation techniques : blown fibre technique pulled fibre technique mechanical building blocks : tube branchout and connecting joints repair kit customer lead in box

13. Competing technologies “traditional” fibre optic cabling technology : –4 or 8 fibres per tube –FIST technology for customer independence –usage of concrete manholes for splicing and/or recoiling ; no direct buried splices “inline” fibre optic cabling technology : –idem + direct buried customer connection splice “modular cabling” technology –2,4 or 8 fibre unit per tube –only one splice at Optical Node –whole system is direct buried –handling of the system : similar as copper outside plant

14. Modular system Network Concept Advantages of a modular fibre system : low up front investment modular, adaptable upon demand from outside to inside rapid fibre deployment no overkill investments point to point fibre reduces # of splices installation of fibre bundles on demand Disadvantages of a modular fibre system : installation of individual fibre bundles more time consuming more complex repair

15. Modular system Network view –ideally suited as distribution and drop system for direct connection of customers

16. Modular system Network view –optional for FTT/C-KVD (from ON to KVD) in a non-full deployment strategy

17. Modular system Network Concept towards implementation –simplicity of the system assures the retrainability of “copper people” due to similarity in handling with the existing copper technology

18. FTT BUILDING - PILOT PROJECT IN NIEUWPOORT

19. FTT BUILDING PILOT PROJECT IN NIEUWPOORT Introduction :-connect new buildings in F.O. -connect existing buildings in F.O.  Desaturates KVD’s so that growth of uni-familial houses and small buildings can be handled by existing KVD’s/cu-network. Introduction of the site : Fundamental plan of the network Nieuwpoort Topographical plan of the site

20. FTTB / FTT KVD - NIEUWPOORT a : b MDF ADM ADM0 OMDF O & M LC ADM BUILDING n ADM ADM0 POTS ISDN CUKVD + HDSL ADM ADM0 ADM ADM0 POTS ISDN 2MB BUILDING 1BUILDING 2 first road second road O.N. HDSL 2MB                  ON - CABINET PROVISIONINGCUSTOMER SERVICE a : b TEST

21. Cabling of the local junction ON 091 LDC HOME LC NIEUWPOORT O.N. 097 1 2 3 4 5 1 2 3 4 5 6 7 8 9 10 Tube 1 : LDC 091 (HOME) Tube 2 : LDC 091 (HOME) Tube 3 : O.N. 097 Tube 4 : O.N. 097 Tube 5 : SDH loop Tube 6-10 : (PDH O.N. 097) 20 fibres 40 fibres 20 fibres

22. C able plan of O.N. (on cable level) FIST 1FIST 2 O.N. cabinet 16 fibres FIST 0 80 fibres 16 fibres 80 fibres 24 fibres 8 fibres cable 1 : 40 fibres cable 2 : 40 fibres cable 3 : 40 fibres cable 4 : 40 fibres 20 fibres 40 fibres 401140124013401440154021402240234024402540314032403340344035404140424043404440454036 LC LDC 091

23. C able plan of O.N. (on tube-level) FIST 1FIST 2 O.N. cabinet FIST 0 ADM 401140124013401440154021402240234024402540314032403340344035404140424043404440454036 3 4 5 6 2 7 8 9 10 1 3 4 5 2 1 3 4 5 6 2 1 : 9 3 4 2 1 : 9 3 4 2 1 : 9 3 4 2 1 : 9 3 4 2 1 :

24. C abling plan distribution ‘fibres per building/KVD’ ONON tube(s) 1 - 4 5 - 8 37-38 39-40 16 fibres input 16 fibres 33-34 35-36 ADM1 BUILDING 1BUILDING 2BUILDING n 16 f.

25. 3. Modular Cabling System Economical Evaluation

26. Economics Comparison on a real plant layout of the investments considering the model network “Nieuwpoort” - FTT Building and different Network Concepts: traditional fibre optic approach modular fibre system approach

27. Investment analysis 0 1000000 2000000 3000000 4000000 5000000 6000000 DuctChamberCableSpliceBoxMeasurementTermWork ClassicModular Total investment

28. Present Value (15%) PV Cumulative 1500000 2000000 2500000 3000000 3500000 4000000 4500000 Year1Year2Year3Year4Year5 Classic PFS

29. Present Value / Results Modular system smallest increase over time For FTTBuilding / FTTC architectures is the advantage for the Modular system 30%