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Liberalisation and regulation in the
electronic communications sector:
Theory and empirical evidence
Week 3
Technical aspects of Electronic
Communications Networks
Business models in network provision
Technical aspects of Electronic
Communications Networks
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Core – Backbone Network
 Fixed (Fiber, PDH/SDH, PoS, GigaBit Ethernet, WDM, DWDM)
 Wireless
Access Network
 Fixed wired (Fiber to the Curb/Home, Cable, Coax, Copper xDSL)
 Wireless (802.11, 802.16, LMDS)
 Mobile (GSM, UMTS, 802.11)
 Satellite communications (DVB/RCS, VSAT)
Interconnection
 Interconnection
 Unbundling
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Backbone - Core Networks
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Backbone - Core Networks (cont'd)
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Access Networks
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Access Networks (cont'd)
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Electronic Communications Networks
Single Operator
Access Network
Access Network
Backbone / Core Network
Access Network
Access Network
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Electronic Communications Networks
Competition
Access Network
Access Network
Backbone / Core Network
Access Network
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Backbone / Core Network
Access Network
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Interconnection
 Physical and logical connection of
telecommunications networks.
 Users connected to different telecommunications
networks communicate directly or indirectly.
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Interconnection - PSTN
Operator
B
Operator
A
Trunk Group
Switch
A Subscriber
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Point of
Interconnect
(POI)
B Subscriber
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Interconnection - NGN
Web Sites
Web Sites
Terminating
Carrier
ISP B
ISP B
Point of
Presence
(POP)
Originating
Carrier
Users
Users
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Interconnection - NGN
Web Sites
Web Sites
Terminating
Carrier
ISP B
ISP B
Originating
Carrier
Backbone
Carrier
Users
Users
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Business models in network provision
Traditional TELCO offerings (ATM –
PDH/SDH)
New TELCO Broadband offerings (Gigabit
Ethernet/Packet over SDH, λ-DWDM)
alternate models (dark fiber, condominium
arrangements)
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Customer Empowered Networks
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School boards and municipalities are building condominium dark fiber
networks in partnership with next generation carrier
Individual institutions – the customers – own and control their own strands
of fiber

Fiber are configured in point to point private networks; or
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Connect to local ISP or carrier hotel
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Private sector maintains the fiber
Low cost LAN architectures and optics are used to light the fiber
These new concepts in customer empowered networking are starting in the
same place as the Internet started – the university and research community.
Customers will start with dark fiber but will eventually extend further
outwards with customer control and ownership of wavelengths

Extending the Internet model of autonomous peering networks to the telecom
world
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Market Drivers

First - low cost
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Second - LAN invades the WAN – no complex SDH/SONET or ATM in network
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Network Restoral & Protection can be done by customer using a variety of
techniques such as wireless backup, or relocating servers to a multi-homed site,
etc
Third - Enables new applications and services not possible with traditional
telecom service providers
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Up to 1000% reduction over current telecom prices. 6-12 month payback
Relocation of servers and extending LAN to central site
Outsourcing LAN and web servers to a 3rd party with no performance impact
IP telephony in the wide area (skype)
HDTV video
Fourth – Allows access to new competitive low cost telecom and IT
companies at carrier neutral “meet me” points

Much easier to outsource servers, e-commerce etc to a 3rd party at a carrier
neutral collocation facility
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What is condominium fiber?
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A number of organizations (schools, hospitals, businesses and universities) get
together to fund and build a fiber network
Carrier partners are also invited to be part of condominium project
Fiber is installed, owned and maintained by 3rd party professional fiber
contractors – usually the same contractors used by the carriers for their fiber
builds
Each institution gets its own set of fibers, at cost, on a 20 year IRU (Indefeasible
Right of Use).
One time up front cost, plus annual maintenance and right of way cost approx
5% of the capital cost
Institution lights up their own strands with whatever technology they want –
Gigabit Ethernet, ATM, PBX, etc
Ideal solution for point to point links for large fixed institutions
Payback, with the current level of prices, is usually less than 18 months!!!
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Municipal Condo Architecture
Fiber Splice Box
Central Office
For Wireless
Company
Carrier Owned
Fiber
School board or
City Hall
Cable head end
Telco Central
Office
Condominium Fiber
with separate strands
owned by school and by
service providers
School
Colo
Facility
School
802.11/802.16
Average Fiber
Penetration to 250-500
homes
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Benefits to Carriers
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Cablecos and telcos: helps them accelerate the
deployment of high speed internet services into the
community
Small Innovative Service Providers: provides opportunities
to offer service to public institutions as well as homes
e-Commerce & Web Hosting Companies: generates new
business in outsourcing, web hosting, Hosting etc.
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Montreal, Quebec (consortium)

Municipal authorities, school boards, RISQ (Réseau d’informations
scientifiques du Québec – Quebec scientific information network) and
IMS (IMS Health Canada) have joined in a consortium to build a
municipal owned dark fibre network.
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Schools can be connected for an average of $80 per month, per school
based on a 20 year amortization of the fibre & eliminate the network
servers at each individual school
Each school has essentially unlimited bandwidth (100 Mbps)
Schools LAN can be extended back to the central administrative site.
Maintenance, Backups and Software Updates can all be done much more
cost effectively from the central administrative building.
Schools are able to explore new high-end applications such as video
conference & Voice over IP.
In Montreal, the estimated payback for dark fibre is between 6
months and 2 years.
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The case of FTTH (Fiber to the Home)
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Problem: How to provide facilities based competition with FTTH?
The incumbent avoids heavy regulation
First generation FTTH models assume the old telco model where
competitors can only get open access e.g. PON (Passive Optical
Networks)
Second generation FTTH models assume structural separation
between service providers and an “aggregator” using Gigabit
Ethernet or ATM
CANARIE (the Canadian Research & Education Network) proposes a
third generation FTTH model with structural separation using
condominium fiber and choice of aggregators or service providers
through point to point fiber and RPON (reverse PON)….
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Gigabit Internet to the Home
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With municipal condominium fiber builds multiple carriers share in
the cost of fiber build out to neighbourhood nodes serving
approximately 250-500 homes
It is impractical to have multiple carriers own individual strands from
the neighbourhood node to each and every home:
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Therefore let the customer have title to individual fiber from the
residence to the neighborhood node
The customer connects to the service provider of their choice at
the neighborhood node
Customer decides if they wish to connect to an aggregator,
convergence provider, or single service Internet provider
Two approaches:

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RPON which allows easy moves, adds and changes
Micro conduit, fiber is blown in upon customer request from designated
service provider
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Gigabit to the Home
Colo Facility
ISP E
ISP C with RPON
ISP D
Up to 15 km
Customer owns fiber
strand all the way to
Neighborhood Node
X
ISP B
Colo Facility
Splice Box
X
Business
with dual
connections
864 strands
Municipal Condominium Fiber Trunk
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RPON
Aggregator
Switch
TDM return
Active laser
at customer
premises
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ISP
Passive Optical
Splitter
Neighborhood
Node
Customer
Controlled or
Owned Fiber
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Regional Networks in EU
Sweden
UK
Ireland
Greece
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