The Dull But Costly Side Of Next-gen Access : Optical Distribution Networks

Service providers (SPs) buy next-generation access (NGA) infrastructure primarily through tenders focused narrowly on specific product areas

. Similarly, the big NGA vendors are good at selling boxes but less proficient at partnering with SPs to help deploy and scale NGA networks economically. Consequently, constructing the optical distribution networks (ODNs) that constitute up to (on average) half or more of the per-subscriber cost of NGA rollouts is left to the carriers and a wide range of outside plant, design, and test companies. We see an opportunity for access systems vendors to more actively support carriers ODN buildouts to the benefit of both parties. Alcatel-Lucent, Huawei, and ZTE are taking some steps in this direction already, in an effort to provide their customers with NGA solutions rather than commoditized hardware.

Table of Contents

Executive summary

In a nutshell

Ovum view

Key messages

Optical distribution network market

Optical distribution networks: also known as holes, poles, and permits

Only a few systems vendors provide full set of fixed NGA solutions across multiple regions

Construction costs dominate other elements of NGA

Keeping priorities straight during NGA rollouts

Regulatory issues related to ODN

Aesthetics

Helping SPs roll out NGA networks: vendor business model evolution

Huawei

Alcatel-Lucent

ZTE

Corning

Marais

List of Tables

Table 1: Key suppliers of ODN hardware and accessories

List of Figures

Figure 1: Fiber to the premises (FTTP) network topology example

Figure 2: Multiple types of access networks

Figure 3: Telecom Italia installing fiber along streets of Milan

Figure 4: Rough costs of per-subscriber installation cost (2007): US vs. China

Figure 5: Ciscos allocation of FTTx costs into three buckets

Figure 6: Priorities in the metro network: one vendors view

Figure 7: NGA directions

Figure 8: P2MP/P2P passive optical networks

Figure 9: TT&T copper cross-connect box

Figure 10: Huawei engineers installing FTTH for Etisalat

Figure 11: ZTEs process for planning and budgeting an ODN project

Figure 12: Application of preconnectorization cable systems in aerial plant

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