# Presentation: 669400

## High Speed PowerLine Networks

***for our National Advancement***

**High Speed PowerLine Networks**

- Daniel J. Middleton
- Vice President Americas, NOR.WEB
- dmiddle@nortelnetworks.com

**Notes:**
Afternoon, I want to list a few common phrases to identify how closely the American mindset describes the promise of intstant high speed access over the powerline:
Like a lightbulb went off in my mind
turned on to the idea
powered up and ready to go
at the flick of a switch
energized with ideas

any of these phrases are used in everyday life and directly apply to how the consumer is describing instant internet connections throughout their homes and over the powerline to their internet provider.
Internet is waiting to be energized....

## Overview

**Introduction**
**Market Drivers**
**Issues/Solutions to Power Line Communications**
**Current Power Line Market Status**
**The Services Opportunity Unfolds**

**Notes:**
This presentation covers the above areas. More detailed views of each section are also available. (Very detailed product section has  notes in preparation).

## Introduction

**Powerline based networks are highly viable, even a preferable medium.**
**Powerline based high speed data systems are being rolled out NOW over Utility and Home Wires.**
**With leadership from the FCC and UTC, investment can be accelerated into the Americas for powerline networks.**

**Notes:**
Before going into the details of DPL, let me cover the background to this development.
Nortel worked with Norweb over a number of years to develop the transmission technique for high speed data over power cables.
The concept of using electrical cables is not new - for example baby alarms - however what is really revolutionary is the high speeds we have achieved. Noise and interference levels were just too high to achieve sufficient performance.
Power cables are very similar in properties to coaxial cable, and this was studied extensively by Paul Brown of Norweb in the early 90’s. His initial work was then taken forward jointly with Nortel, where, after a number of trials, the decision was taken to focus commercial development on data rather than voice communications for the reasons of both market growth and noise ingress.
Trials of earlier versions of what is now DPL were successfully run during 1997, resulting in the initial announcements of last October, and in the formation in April 1998 of NOR.WEB to market the technology worldwide.

## Power Line Evolution

**Established Niches over a decade:**
- PowerLine based systems began over a decade ago for control systems, truck and shipboard monitoring of goods.
- CeBus standard delivered control systems for low bit rate appliance control
**Moore’s Law offering improved DSP and modulation techniques to handle noise**
- Speeds up to 356 kbps in home systems and 100kbps shipboard systems
- Speeds up to 1000 kbps in Access to the home in Europe
**Next Generation:**
- 2-10 Mbps over useable spectrum for both in home and access to the home in the course of 12-18 months.
- Market space greatly expands to include IP appliances, IP Voice, High Speed Access with In Home LAN’s

## The Reference Point - Access                    

**The Reference Point - Access**

**Advancements in powerline access protocols offered opportunity for UK and Europe to move.**
**Dense homes/transformer drove market introduction.**
**Systems deep in trials with systems in UK, Europe, and Asia for access to premises with major utilities covering >50million power users.**
**North America has a newer infrastructure with strong growth that is seeking an alternative connection.**

**Growth is occurring via powerline data in EU, Asia, and UK**
**USA would be able to benefit from this experience**

**Rest of World**

**Notes:**
NOR.WEB is a 50:50 JV between Nortel and UU. UU is the parent of Norweb, the energy provider in the North West of the UK, which has a telecommunications business - Norweb Comms. It also owns North West Water, and is the first real example of a ‘multi-utility’. UU also has large holdings in Europe, Asia and South America. (Backup chart available)
The parents have licensed the technology exclusively to NOR.WEB to sell worldwide. Most of the equipment is being manufactured by Nortel (Monkstown), and the combination of the expertise of both organisations provides an essential, and unique, capability in delivering successful solutions to customers. (Norweb power knowledge, Norweb comms operator experience, Nortel as a global networks provider and its experience with successful NLO’s worldwide)

## The Reference Point - In Premise                    

**The Reference Point - In Premise**

**Multiple PC/Printer homes hit the 20 million mark**
**Demand for high bandwidth services extends into and around the home/SOHO to minimize cost**
**Powerline systems at 356kbps in stores in 1998 and offer the reuse of wire every 6 feet**
**Powerline systems in use in trucking industry and shipping industry at sub 100kbps**
**Next generation of systems drive to 10 mbps levels**

**USA**

**Activate multimedia services **

**Notes:**
NOR.WEB is a 50:50 JV between Nortel and UU. UU is the parent of Norweb, the energy provider in the North West of the UK, which has a telecommunications business - Norweb Comms. It also owns North West Water, and is the first real example of a ‘multi-utility’. UU also has large holdings in Europe, Asia and South America. (Backup chart available)
The parents have licensed the technology exclusively to NOR.WEB to sell worldwide. Most of the equipment is being manufactured by Nortel (Monkstown), and the combination of the expertise of both organisations provides an essential, and unique, capability in delivering successful solutions to customers. (Norweb power knowledge, Norweb comms operator experience, Nortel as a global networks provider and its experience with successful NLO’s worldwide)

## PowerLine WAN/LAN	Delivering Value Add

**“****Continuous Delivery of a Commodity Service to a Premise”**

**“****The continuous Delivery of Services to a premise that accelerates End User access to high speed content, education, and experiences”**

**“****Discreet use of a high speed connection”**

**“****Home networks linked to deliver cost saving and services to add value to our lifestyles”**

**The Premise**

**The Access**

## Overview

**Introduction**
**Market Drivers-Access**
**Market Drivers-Premise**
**Issues/Solutions to Power Line Communications**
**Current Power Line Communications Market**
**The Services Opportunity**

## The Market Drivers - Access

**END USER ****seek appliance****-like low-cost, high speed and *****easy***** access to Internet**** **
**ISPs ****seek new high****-speed access solutions driven by global growth of data services**
**POWER UTILITIES ****seek new revenue opportunities presented through**** ****deregulation **
**GLOBAL CARRIERS ****seek alternative access over Telcos and CATV operators**
**GOVERNMENT**** seek to bring new competition and options to the consumer base**

**Notes:**
What is driving the opportunity for DPL solutions and why now?
We talked earlier about the focus on data - many of you will be aware of the very high growth in data traffic - for example in the US last year the amount of data exceeded voice for the first time. Much of this was fuelled by the enormous growth of the internet and related services. And the trend is moving to voice on data networks, rather than data on voice networks.
We can’t ignore the Internet - the demand for access is growing; and as this grows beyond the early adopters the need is for higher speeds, lower rates for access and easy, simple usage.
The percent of households with PCs will grow to 54% in 2001 with the portion of multi-PC households growing to 24.5%, indicating that the continued drop in PC prices will drive multi-PC penetration more rapidly than overall PC adoption.

## U.S. Residential High

**U.S. Residential High**
**-Speed Internet Access**** **
***Addressable Market***

*Source:  International Data Corporation, September 1998*

- Total Existing Technologies:  ISDN, Wireless, DSL, Cable modem, Satellite.

**1999-2002 (M)**

- PC’s

## The Market Drivers - Premise

**END USER ****seek appliance-like low-cost, high speed and *****easy***** access to Internet**** *****that is shared amongst devices (ie one HS modem per home)***
**ISPs ****seek new high-speed access solutions driven by global growth of data services**** *****and throughout the premise to new IP devices***
**POWER UTILITIES ****seek new revenue opportunities presented through deregulation**** *****by leveraging their image into the home space.***
**GLOBAL CARRIERS ****seek alternative access over Telcos and CATV operators *****and VoIP.***
**GOVERNMENT**** seeks to bring new competition and options to the consumer base**
**INDUSTRY *****seeks to fill in the missing link - the LAN to enable IP based devices investment***

**Notes:**
What is driving the opportunity for DPL solutions and why now?
We talked earlier about the focus on data - many of you will be aware of the very high growth in data traffic - for example in the US last year the amount of data exceeded voice for the first time. Much of this was fuelled by the enormous growth of the internet and related services. And the trend is moving to voice on data networks, rather than data on voice networks.
We can’t ignore the Internet - the demand for access is growing; and as this grows beyond the early adopters the need is for higher speeds, lower rates for access and easy, simple usage.
The percent of households with PCs will grow to 54% in 2001 with the portion of multi-PC households growing to 24.5%, indicating that the continued drop in PC prices will drive multi-PC penetration more rapidly than overall PC adoption.

## Home Networking Evolution

**Energy Management**
**Home Security**

**Resource Sharing**

**Information Servers**

**Network Applications**

**Increase in Bandwidth Requirements**

**Personal Networking**
***all intelligent appliances in home, car, office, PSTN, internet***

**Home Entertainment**
***network of A/V: DVD, TV, Web TV, set-top box, etc.***
***digitl furnace***

**Home Networking (PC to PC networking)**
***internet access***
***printers/scanners***
***files***
***network gaming***

**Home Automation/Control**
***utilities***
**Home Security/Surveillance**

## Today’s Key Drivers

**Total 100%**

*Source:  Intel, 2/97 White paper, Yankee, 1998*

***Unaided; homes likely to purchase***

## Key Market Trends In the Home

**Drop in First Time PC Buyers, ****Multiple PC Households Growing**

- Millions of
- Households

**U.S. Online Households**

- 0%

- 10%

- 20%

- 30%

- 40%

- 50%

- 60%

- 70%

- 80%

- 90%

- 100%

- 1995

- 1996

- 1997

- 1998

- 1999

- 2000

- Single PC Households

- Multiple PC Households

***Households are Racing Online . . .***

*** ******. . . And increasingly on Multiple PCs***

*Source:  Jupiter Communications*

- 0

- 10

- 20

- 30

- 40

- 50

- 60

- 1996

- 1997

- 1998

- 1999

- 2000

- 2001

- 2002

**One-third (30M) of US households have Internet access devices including PCs**
**By the year 2002, 15.3M households will depend on their in-home networking connections to enable communications between multiple PCs and other electronic devices**

**Over 15 million of the nearly 100 million homes in the United State have two or more P.C.s**
**This number is growing 30% annually**

## Intelligent Devices- 2001 Market Opportunity

**Intelligent Devices****- ****2001 Market Opportunity**

**Total Devices**

**Emerging Devices**

***Over 100M Intelligent devices requiring greater connectivity***

## Overview

**Introduction**
**Market Drivers**
**Issues/Solutions to Power Line Communications**
**Current Power Line Communications Market**
**The Services Opportunity**

## Current Electricity Networks - Access

**  **
**Most Ubiquitous Coverage of any media**
**Delivers commodity services - always on**
**High Reliability within the neighbourhood and home**
**Capable of delivering > 1 MHz high-speed data without impacting current services**
**Rural and Urban and Suburban networks have opportunity to become data pipes**

## High Speed Data Over Power Line

**Technical Challenges:**
**Coexistence of the data signals and the electric current.**
**Identify and quantify issues with RFI regulations.**
**Protecting the data signal from electrical noise.**
**Current data services’ speed and capacity.**
**Technical Solutions:**
**Operating data signals at > 1 MHz.**
**High efficiency coupling plus low signal power combine to satisfy RFI regulators.**
**Unique protocol/modulation scheme that avoids the power noise.**
**Next generation modulation techniques on a chip.**

## Next Generation Keys 

**Improved modulation and protocols as industry learning occurs.**
**Improved regulations on emissions to a reasonable level that still avoids interference.**
**Linkage of Access with In Home LAN to create interoperability standards.**
**Acceptance by Industry as a viable first mile solution that drives new services and is allowed under regulation.**

## Current Electricity Networks-In Premise Advantages

**Access Points every six feet**
**Appliances all require placement at socket**
**Ease of access at home entry point for HS Access **
**Control systems and energy devices are all linked to power system**
**New Internet devices will all be powered**

## Overview

**Introduction**
**Market Drivers**
**Issues/Solutions to Power Line Communications**
**Current Power Line Communications Market**
**The Services Opportunity**

## European Status PowerLine Based Communications

## Global Utilities Adopting  PowerLine Communications

**These utilities reach ****35,000,000**** power users.**

**Notes:**
Currently have 10 customers under agreement
They serve over 50 million electricity subs in Europe and Asia
List includes:
Germany (2)
UK (2)
Sweden (3)
Netherlands
Malaysia
others...

## Inaugural Trial Deployment

## Community Value

**Headmaster, Elementary School in Manchester, England**
**Utilizing a PowerLine based network since end of 1997**

## High Level Architecture View

***POP***

**Intranet/Internet**
**Content Network**

- Fiber
- Wireless
- Copper xDSL

- Neighborhood powerlines
- serve as first mile connection

- ~200 home
- neighborhoods
- on one transformer

## Typical Architecture (EU)

**Ethernet**

**Low Voltage **
**Distribution**

**IP Voice/fax ?**

**IR link ?**

**Basestation**

**LV**
**Substation**

**Data**

**Modem**

**FDDI**

**SDH core**

**Hub**

**X Basestations**

**Mainstation**
** ****(ATM Switch)**

**Typical Architecture (EU)**

**Couplers**

## North America Status

## North America Market Status

**North America Market Status**

**Industry is prime for new alternative to reach the consumer to serve demand for high speed access.**
**FCC’s interest in establishing the correct Part 15 limits is key to investment by the industry.**
**In Home LAN’s are in the market at 100 and 356kbps speeds in the retail space**
**Next generation multimeg LAN solutions in the market in less than 12 months for trials/early retail.**

- Home PC

- Home PC

- Peripherals

- Game Console

- Legacy PC

- CM

- DSL

- DPL

**Content/Apps/Services**

## Overview

**Introduction**
**Market Drivers**
**Issues/Solutions to Power Line Communications**
**Current Power Line Communications Market**
**The Services Opportunity**

## Single High Speed Connection 

**Utility Intranet**

**Application**
**Server**

**PSTN / ISDN**
**National/International**

**DPL Basestation**

**WWW**

**Phoneline based**
**Standard Cat 5**
**Wireless**
**Powerline**

**DPLComms Module**

**DPL Basestation**

**DPL CM**

**Ethernet**

**Within net**

**Between net**

**Data**
**Switch**

**Content &**
**Services**
**Server**

**PC**

**Single High Speed Connection **

## Web TV - Inter/Intranet Services

**Utility Intranet**

**Data**
**Switch**

**PSTN / ISDN**
**National/International**

**DPL Basestation**

**WWW**

**DPLComms Module**

**Set top Box**

**DPL Basestation**

**DPL CM**

**Ethernet**

**Within net**

**Web TV - Inter/Intranet Services**

**Between net**

**TV**
**(with Windows)**

**Content &**
**Services**
**Server**

**Phoneline based**
**Standard Cat 5**
**Wireless**
**Powerline**

## Voice / Conference IP

**Utility Intranet**

**Fax**
**Server**

**Ethernet**
**IP phone**

**PSTN / ISDN**
**National/International**

**DPL Basestation**

**WWW**

**Voice**
**IP Gateway**

**DPLComms Module**

**InConference**
**Server**

**Fax Box**

**Analogue**
**Fax**

**USB**
**IP phone**

**Graphics**
**InConference**
**(no voice)**

**Microsoft**
**Multimedia**
**Netmeeting**

**Mic**
**Speaker**

**DPL Basestation**

**DPL CM**

**Ethernet**

**Within net**

**Between net**

**Voice / Conference IP**

**Phoneline based**
**Standard Cat 5**
**Wireless**
**Powerline**

## Premise Control / Monitoring

**Utility Intranet**

**Data Switch**

**PSTN / ISDN**
**National/International**

**DPL Basestation**

**WWW**

**PowerLine &**
**RF only**

**DPLComms Module**

**DPL Basestation**

**DPL CM**

**Ethernet**

**Within net**

**Premise Control / Monitoring**

**Between net**

**PC**
**(with Windows)**

**Set top Box**

**TV**
**(with Windows)**

_***OR***_

**Temperature**

**Security**

**Lighting**

**Audio/Video**

**White Goods**

**Premise power network**

## Delivery / Control / Diagnostics

**Utility Intranet**

**Data Switch**

**PSTN / ISDN**
**National/International**

**DPL Basestation**

**WWW**

**PowerLine &**
**RF Only**

**DPLComms Module**

**DPL Basestation**

**DPL CM**

**Ethernet**

**Within net**

**Delivery / Control / Diagnostics**

**TV**
**(with Windows)**

**SERVICE**
**CENTRE**

**PC**
**(with Windows)**

**Set top Box**

_***OR***_

**Temperature**

**Security**

**Lighting**

**Audio/Video**

**White Goods**

**Premise power network**

## Which are the Winning Services ?

**Internet**
**Intranet**

**Publishing**

**Broadband**

**Narrowband**

**Interactive**

**Broadcast**

** ****Interactive**
**Shopping**

**Remote**
**Learning**

**N-VOD**

** ****Targeted**
**Advertising**

**Work**
**At **
**Home**

**Interactive**
**Games**

**VOD**

**Videophone**

**Telemetry**

**On-line**
**Information**

**Voice**
**Telephony**

**Service Segmentation Year 2001**

## PowerLine Doesn’t Care...

- Mass coverage by powerlines allows flexibility for consumers
- Mass coverage by powerlines allows de-risked investment by industry players
- Mass coverage by powerlines makes it important for the government to encourage success

**...It’s MegaBits for the Masses!**