# Presentation: 188835

## Broadband Access Platforms for the Mass Market –An Assessment 

- FCC Technical Advisory Council
- Optical Working Group
- December 4, 2002

## OUTLINE

**OUTLINE**

- Summarize Task
- Define services offered over broadband access platforms today.
- Provide synopsis of suitability of platforms
- Discuss key economic factors
- Propose next steps

## ANALYSIS OF BB ACCESS PLATFORMS FOR THE MASS MARKET

**Define services purchased by mass market today over broadband access platforms**
- Voice
- High Speed Internet Access
- Multi-programming video services
**Defer discussion of tomorrow’s services for future work**

**Task**

- Definition of Broadband
- Viability of Intermodal Competition
- Availability of Broadband to All Americans

**Analyze economics of deployment**
- Cost of deployment with different service bundles
- Various  geographies
- Cable and DSL as baseline

**Assessment of Broadband Access Platforms**
- Status
- Feasibility
- Roadblocks to deployment

- Supporting Documents:
- Broadband Access Assessment Oct. Meeting Notes;
- Broadband Access Assessment Action Plan

**Comments**

**Key Issues for FCC **

## OUTLINE

- Summarize Task
- Define services offered over broadband access platforms today.
- Provide synopsis of suitability of platforms
- Discuss key economic factors
- Propose next steps

**OUTLINE**

## DEFINITIONS OF TODAY’S SERVICES PROVIDED BY BB ACCESS

**Description**

**Voice**

- Primary line
- Feature set, availability, toll quality voice, reliability as basic  service
- E911 w/o AC power, CALEA, Operator and emergency services
- CLASS and customer calling
- Transparent to customers’ environment (extension phones, add’l lines)
- Secondary Line
- Lower cost, limited features, disclaimer
- Always-on
- Speeds comparable to DSL or Cable Modem today
- Performance comparable to DLS or Cable Modem including latency
- Basic and premium video channel packages
- Pay per view
- Comparable to Cable of DBS services today
- VOD starting to gain traction

**Service**

- Supporting Documents
- Primary versus secondary line telephony service from Cable Labs
- Broadband Access for Multiprogramming Video/Audio Services

## OUTLINE

- Summarize Task
- Define services offered over broadband access platforms today.
- Provide synopsis of suitability of platforms
- Discuss key economic factors
- Propose next steps

**OUTLINE**

## BB Access Platforms Suitability

- The TAC had previously supplied the FCC with an analysis of many BB  platforms.  These analyses were updated, more detailed material was supplied, and one additional platform was added.  The key features, advantages, disadvantages and limitations were addressed.

| Suitable
--------------
  Available | Cable | DSL | VDSL | FTTx | PLC | Satellite |
| --- | --- | --- | --- | --- | --- | --- |
| Voice –
Primary
Line |  |  |  |  |  |  |
| Voice –
Secondary
Line |  |  |  |  |  |  |
| High
Speed
Internet |  |  |  |  |  |  |
| Multi-
Program
Video |  |  |  |  |  |  |

- Suitable

- Not Suitable

-  ̃

- —

- –

- Available now
- In early deployment
- Not available

- 	Suitable includees technical ability to deliver desired services as well as costs to do so.

-  ̃

-  ̃

-  ̃

-  ̃

-  ̃

-  ̃

-  ̃

- –

- –

- –

- –

- –

- –

- –

- –

- –

- —

- —

- —

- —

-  ̃

-  ̃

-  ̃

-  ̃

## BB Access Platforms Suitability

- The TAC had previously supplied the FCC with an analysis of many BB  platforms.  These analyses were updated, more detailed material was supplied, and one additional platform was added.  The key features, advantages, disadvantages and limitations were addressed.

| Suitable
--------------
  Available | LMDS | MMDS | Unli-censed Wireless | Portable
Broadband | Space Platforms | 3G |
| --- | --- | --- | --- | --- | --- | --- |
| Voice –
Primary
Line |  |  |  |  |  |  |
| Voice –
Secondary
Line |  |  |  |  |  |  |
| High
Speed
Internet |  |  |  |  |  |  |
| Multi-
Program
Video |  |  |  |  |  |  |

- Suitable

- Not Suitable

-  ̃

- —

- –

- Available now
- In early deployment
- Not available

- 	Suitable includees technical ability to deliver desired services as well as costs to do so.

-  ̃

- –

- –

- –

- –

- –

- —

- —

- —

- —

- —

- —

-  ̃

-  ̃

-  ̃

-  ̃

- –

- –

- —

- –

- –

- –

- –

- —

## Stratospheric Platform Based Wireless Systems – An example of platform analysisTALKING POINTS 

**Stratospheric Platform Based Wireless Systems – ****An example of platform analysis****TALKING POINTS **

- Long endurance platforms (airship or airplane) loitering in stratosphere as communications relay
- Above weather and can be station kept
- Very tall “towers”, ~20 KM
- Instant ubiquitous coverage over most BTAs with single platform
- Capable of hosting both fixed wireless and mobile systems
- Thousands order of magnitude in spectrum efficiency than satellite for fixed wireless
- Adaptive spatial processing maximize the spectral efficiency for mobile systems, to achieve broadband data-rates
- Allow Multiple operators over same BTA market each with their own network of platform(s) – frequency sharing with spatial separations
- Roll out and revenue generation BTA by BTA

- Spectrum allocations to operate: mobile subscriber link, fixed user link, gateway backhaul link
- Current 47 GHz allocation for HAPS too restrictive
- Potential spectrum sharing with GEO satellites
- Endurance is challenging for high latitudes (stratosphere jet stream)
- Cost estimates have to be validated in commercial systems, but the business models look attractive
- FAA platform certification

**Issues**

## Stratospheric Platform Based Wireless Systems –An example of Platform analysis – con. OVERVIEW

- Fixed Wireless
- Similar service as MMDS/LMDS
- Small fixed CPE antenna for station kept platforms
- Can use simple bent pipe payload similar to satellite
- Mobile Services
- Similar services as 2, 2.5, 3G
- Adaptive spatial processing maximize the spectral efficiency for mobile systems, to achieve broadband data-rates
- Broadcast
- High definition TV
- Local channels for DBS

**Advantages:**
- Spectral efficiency, and thereby cost structure
- High elevation angle to user
- Staged roll out
- Capex is dramatically lower than terrestrial tower networks or satellites
- Spatial diversity
- Multiple platforms
- Multiple operators
**Challenges:**
- Requires spectrum allocations
- Mobile subscriber link
- Fixed wireless user link
- Gateway backhaul link
- Platform technology for endurance
- FAA platform certification

- All last mile end users
- Terrestrial service operators to complement services
- DBS operators to complement services
- HDTV broadcast stations

- AeroVironment/Skytower Global
- Helios solar-electric airplane
- Advanced Technologies Group/StratSat (UK)
- Solar-electric airship
- Volacom
- Lockheed Martin Akron
- Solar-electric airship
- Sky Station
- Airship
- Angel Technologies/Halostar
- Proteus manned jet
- Non station keeping
- Others

## OUTLINE

- Summarize Task
- Define services offered over broadband access platforms today.
- Provide synopsis of suitability of platforms
- Discuss key economic factors
- Propose next steps

**OUTLINE**

## FOUR MAJOR FACTORS EFFECT BB PLATFORM ECONOMICS

**Customer Equipment & Installation**

- Costs of customer equipment
- For primary line telephony, “Smart NID or equivalent to handle basic phones, extensions, etc.
- For digital video Set Top Box per TV
-  Costs of customer installation
- For primary line telephony, connection of I/W to “Smart NID” or replacements of same
- For internet access, connection of PC to network access link
- Cost of customer engineering
- For wireless, line of sight engineering
- Compatibility w/ computer environment

**Revenue Generating Services**

- Ability to share costs across multiple service offerings
- Ability to share marketing and SG&A across multiple offerings
- Ability to reduce churn
- .....

**Network Access Costs**

- Costs per “port” to add customers
- Costs of ROWs and/or antennae sites
- Costs of civil engineering and construction
- Costs of concentration and backhaul
- Cost of network engineering
- Traffic engineering for shared media
- RF engineering for wireless
- .....

**Operations, Billing, and Customer Care Systems**

- Costs of developing software support systems
- Ability to modify systems for new services/features
- Scalability
- .......

**$$$s**

## CABLE AND DSL INTERNET ACCESS COST STRUCTURE BENCHMARKS

- $ per customer per month for model network build

**Mass xDSL deployment**

**Cable**

- 2002E

- Total costs

- $53.5

- Transport/network

- ISP/hosting

- Maintenance

- CPE

- G&A

- Customer service/billing

- 	Note:	Weighted average of retail and wholesale; includes installation revenues.  Columns may not total due to rounding
- 	Source:	McKinsey and JPMS analysis

- 2002E

- $40.0

- Home installation

- Customer acquisition

- 1.0

- Maintenance

- Customer service/billing

- CPE

- Customer acquisition

- ISP/hosting

- Transport/network

- Total costs

- Home installation

- 	Source: JPMorgan and McKinsey analysis

## BUT NO ONE SOLUTION FITS ALL MARKETS AND SERVICES 

**High**
**density**

**Medium**
**density**

**Low**
**density**

**- High**
**clustering**

**- Low**
**clustering**

**POTS/Fax**

**POTS/ISDN/Data**

**POTS/data/Video**

**Multimedia BB**

**Satellite**

**Multiservice**
**DSLAM**
**xDSL**

**POTS/Data nx64**

**Wireless Access**
**Wideband/BB**

**Wireless Access**
**Narrowband**

**Satellite**

**Switching based**
**access **

**8000**

**400**

**400**

**100**

**100**

**0.5**

**10**

**Cust./sq miles**

**Services**
**&Traffic**

**Fixed GSM **

**FTTB**

**CABLE/HFC**

**APON/FTTH **
**(for new builds)**

- 	Source: Alcatel

## OUTLINE

- Summarize Task
- Define services offered over broadband access platforms today.
- Provide synopsis of suitability of platforms
- Discuss key economic factors
- Propose next steps

**OUTLINE**

## Next Steps

- Complete delivery of current assessment to FCC
- -transmit documents
- -hold oral briefings and discussions as needed
- -solicit feedback on how we met need and what else is needed
- Continue assessment of platforms for delivery of today’s services
- -complete economic assessments for promising platforms
- (working with university students under guidance from TAC members)
- -update assessments for platforms as new information is learned
- Start assessment of platforms for tomorrow’s service
- -define services
- -analyze broadband platform feasibility
- -understand economics

## BACKUP

**BACKUP**

## KEY OBSERVATIONS ABOUT DIFFERENT PLATFORMS

**Observations**

**Cable**

**DSL **

**VDSL**

- Support of primary line telephony plus additional lines requires deployment of “Smart NID” and truck roll or equivalent thereof
- Not capable of supporting multi-simultaneous video streams
- Currently only available to about 60% of households
- High costs due to capacity reinforcement
- Limited addressability and/or high costs due to length limitations

**BB**
**Platform**

- Supporting Documents
- TBD

## KEY OBSERVATIONS ABOUT DIFFERENT PLATFORMS

**Observations**

**FTTx**

**PLC**

**Satellite**

- To be done

**BB**
**Platform**

- Supporting Documents
- TBD

## KEY OBSERVATIONS ABOUT DIFFERENT PLATFORMS

**Observations**

**LMDS**

**MMDS**

**Unlicensed Wireless**

- To be done

**BB**
**Platform**

- Supporting Documents
- TBD

## KEY OBSERVATIONS ABOUT DIFFERENT PLATFORMS

**Observations**

**Portable Broadband**

**Space Platforms**

**3G**

- To be done

**BB**
**Platform**

- Supporting Documents
- TBD