EPON vs GPON

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Agenda
EPON vs GPON Economics Analysis of EPON and GPON

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EPON vs GPON in Technologies

Technology Max Bandwidth (bps) US DS Line Code Protocol Layer 2 Efficient Bandwidth (bps) Bandwidth Efficiency TDM Support Max Transmission Distance Max Splitting Rate OAM&P Security Interoperation US DS Ethernet 760M 900M 0.72 TDM Over IP 10km/20km 1:32/1:16 Ethernet OAM (plus optional SNMP) Not Defined Not Defined ATM/GEM 1160M 2300M 0.93 TDM over IP/ TDM over ATM/ TDM over GEM 20km 1:64/1:128 PL OAM and OMCI AES (mandatory) FSAN and ITU-T EPON 1250M 1250M 8B/10B GPON 1250M 2500M NRZ

GPON is better than EPON in bandwidth , encapsulation efficiency, multi-service support, splitting rate and OAM GPON is more suitable in telecom networks which care about operation and maintenance, interoperation, security and so on.
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GPON with Better Support of Multi-service and Higher Efficiency

Voice TDME1 VoIP TCP+UDP etc. IP Ethernet AAL1/AAL2 AAL5 Data Video Voice TDME1 VoIP Data Video

GEM Frame
AES (Optional)
PON-PHY

AES (Mandatory)

PON-PHY GPON

EPON

EPON is introduced by IEEE based on modified MAC and RS sub-layer Ethernet technology, EPON technology is quite simple and similar with standard LAN switch in service carrying structure and suitable for pure data transmission. The ranging , time recovery and synchronization requirement of EPON is lower , so the optical module and CDR device is cheaper , but which also cause higher overhead redundancy required. EPON adopts 8B/10B coding which cause 20% efficiency loss in physical layer, while GPON uses NRZ coding without loss
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GPON with More Complete Standard

GPON Object Operating method FSAN: Full-service support FSAN Technical specification of equipment driven and approved by telecom operators Wavelength Coverage area QoS Network delay Management and maintenance Security Defined Defined by equipment provider Defined Defined Defined Defined Defined Defined Defined Defined by equipment provider Defined by equipment provider Defined by equipment provider EPON The last kilometer Ethernet of EFM Popular Ethernet equipment provider

GPON standard defined by operators with more complete consideration in telecom service . EPON standard is defined by some of the equipment providers. The standard focuses on physical specification and needs subsequent definition by other equipment providers, with cause difficulties in interoperation.

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GPON with More Mature Industrial Chain

Mainstream Chip Producer has devoted to GPON, such as BRCM, CTLM, Broadlight. Mainstream broadband access equipment producer has devoted to GPON, such as Huawei, Alcatel, Siemens, Ericsson, Motorola, Lucent Hitachi and so on . GPON gets widely support from global TOP operators including RBOCs, BT, FT, TI, Telefonica, Etisalat, Telmex, Singtel , Telstra; FSAN fully supports and organizes the interoperability test and authentication: Physical interoperability test in May 2006 Service interoperability test in September 2006

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GPON -- Choice of Global Mainstream Operators

Country/Region US US US UK France Netherlands Italy Spain the United Arab Emirates Pan-Latin-America Mexico Singtel Australia Japan Operator Verizon South Bell SBC BT FT KPN TI Telefonica Etisalat TLATAM (Telefonica LA) Telmex Telecom Telstra NTT Chosen technology GPON GPON GPON GPON GPON P2P/GPON GPON GPON GPON GPON GPON GPON GPON EPON 2006Q3 2006Q2 2006Q3 2006Q2 Tender Time 2006Q3 2006Q3 2006Q3

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Agenda
EPON vs GPON Economics Analysis of EPON and GPON

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GPON vs EPON Cost Analysis

GPON/EPON

Application Scenario: 10000 FTTH users 100% line bandwidth loading

OLT
ONT

10000 Subs Assumption: Comparison between EPON and GPON CO equipment and ONT only , ODN is supposed equalized in cost although splitting ratio might be different. Cost of EPON and GPON Equipment and ONT EPON OLT=GPON OLT=1800 US EPON ONT=GPON ONT=100 US Note: GPON OLT and ONT price surely are higher than EPON , but so far there is no commercialized reference price, so here it is just supposed they are equal and lets see what will happen

Efficient Bandwidth EPON GPON

DS bandwidth (Mbps) 1250 2500

US bandwidth (Mbps) 1250 1250

DS Efficiency 72% 93%

DS Efficient BW (Mbps) 900 2300

Splitting Rate 32 64

Transmission Distance 10km 10km

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GPON vs EPON in OLT Price The following figure shows the cost difference of EPON and GPON , figure 1 is for total cost of network equipment, figure 2 is for cost per subscriber

Figure 1 Total equipment and terminal cost

Figure 2 Cost per subscriber

GPON cost advantages are from the reduction of OLT Qty, because GPON has higher DS bandwidth , splitting rate and bandwidth efficiency
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GPON vs EPON in ONT Price Sensitivity Indicated by following table the comparison of EPON and GPON implementation, GPON can obtain Qty advantage by 1:2.6, which also means 1.2 million US saving.
BW/Subscriber (Mbps) EPON OLT Qty GPON OLT Qty Qty comparison Ratio (1: ) 10 313 157 2.0 20 313 157 2.0 30 334 157 2.1 40 455 176 2.6 50 556 218 2.6 60 667 264 2.5 70 834 313 2.7 80 910 358 2.5 90 1000 400 2.5 100 1112 435 2.6

Table 1 EPON and GPON implementation

Considering the GPON OLT saving, the GPON ONT cost sensitivity could be calculated , then applied to the ONTs in the networks. For example , in case 100 Mbps per subscriber , 1.2 million US saving could be distributed into 10000 ONTs , then to equalize the cost difference of EPON ONT and GPON ONT.

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How much can GPON Price Higher than EPON

According previous calculation , It could be obtained how much can GPON equipment price higher than EPON. The following figures shows the GPON price sensitivity (mark up part) compared with EPON:

Figure 3 GPON ONT Mark up

Figure 4 GPON OLT Mark up

It is indicated in the same network situation , GPON ONT can bear 120 US higher per subscriber (could reach to 220 US, or 120% higher) GPON OLT can bear 4500 US higher than EPON per site
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Summary
EPON equipment unit price is low due to its easy way technology realization and lower requirement of optical device. But from previous analysis , it is clearly indicated GPON possess of very cost effective in a concept of whole network , especially in large scale and high bandwidth per subscriber FTTH network, which owe to GPONs higher splitting rate, max bandwidth and efficient bandwidth , those advantages lead to half reduction of OLT qty. Less OLT means less site space and power consumption , besides the equipment life circle cost could also be reduced.

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Thank you

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