Expert’s Forum

Wei Leping, CTO of China Telecom

Development and prospects

for Fiber Communication
Technologies By Wei Leping
By Wei Leping

This article provides a brief summary and an overview of prospects for the development
trend of key technical fields in the fiber communications system. The main conclusions
are: SDH will be transformed into a converged, low-cost multi-service platform. Some
new optical Ethernet solutions are meeting the functionality and performance
requirements imposed by public telecom networks.
These solutions provide choices for metropolitan multi-service networks, but there are a
series of issues that still need further clarification and improvement. 40Gbit/s transmission
technology is nearing the final stages of its development, but it will be awhile before
large-scale commercial application is realized. The technology and market for ultra-long-
haul WDM is mature; and coarse WDM prospects will be good in metropolitan area
networks in China. Point-to-point WDM transmission will evolve towards an automatic
switched optical network. EPON and GPON will become the leading FTTH technologies.
However, the large-scale deployment of FTTH technologies still needs further con-
sideration in terms of the cost, deployment technologies and types of applications.

t the beginning of this century, a huge burst occurred in the network,

Wei Leping
Chief Technology Officer, China Telecom Corporation
President, Beijing Research Institute of China Telecom
Corporation
Commissioner, 1st IT Specialists Commission of
National 863 Plan
Director, Communication Network Committee, China
Communications Academy
Deputy Director, Optical Communications
Committee, China Communication
A
fiber, and 3G bubbles that threw the telecom industry worldwide into a
tight corner, and fiber communications was the first area to be affected.
Fortunately, inherent demands for telecommunications are still very much
in evidence. People still make calls and access the internet; short message
is becoming more and more popular; and IPTV is simmering and almost ready to be
served up in the telecommunications market. In fact, the telecom market keeps growing
and growing. For instance, the demand on network bandwidth worldwide grows at a
rate of 50% to 100% annually, and backbone service and bandwidth demand in China
has grown at a rate of nearly 200% in previous years. The difficulty brought about by
the bubble burst has only made the speed of development slower, but it has never halted
the development of telecommunications technologies and service. After years of
realignment, the telecom industry is now back-on-track and the market is appearing to
be more stable and normal. This article only gives a brief summary of the development
trend and prospects for fiber communications technologies.

SDH is transforming into the converged, low-cost

multi-service platform of next generation
SDH is considered by many to be the mainstream transport hierarchy in telecom
networks. However, due to the emergence and continued development of WDM, SDH

1 SEPT 2005 ˙ ISSUE 18


has changed much in terms of both its
position within a network and applications.
For example, on the long-haul backbone,
SDH has been reduced in importance and
position, to being the client layer of WDM
and its application in this instance is moving
it to the network edge. Because client signals
at the network edge are complicated, SDH
must transform itself, from being solely a
single transport network, to becoming a
multi-service platform, which is capable of
integrating both the transport network and
the service network. That is to say, each SDH
node needs to become a converged multi-
service node. Thus, once this has been
accomplished then we will be able to make
full use of a more trustworthy and mature
SDH technology, especially concerning such
aspects as its service protection and
guaranteed delay performance. Other
advantages to be gained would also include
its newly formed ability to adapt
to multi-service applications
and support Layer 2, or even
Layer 3 intelligent data
features, hence, building up a
multi-service transport platform (MSTP)
that integrates both the transport layer and
the service layer.
In recent years, the percentage of data
services in the network has been increasing
exponentially. So much so, that now the
SDH multi-service platform is evolving
from a data-only encapsulation and
transparent transmission mode, to a next-
generation SDH, and is continuing in
its development to support data
services in a more flexible and
efficient manner. The latest
advancement in telecom
technologies would include: the integration
of a generic frame procedure (GFP), a link
capacity adjustment scheme (LCAS) and
automatic switched optical network (ASON).
GFP is a mapping technology that can
transparently encapsulate various data signals
into a universal standard signal structure
used in current networks. GFP is a simple
and flexible technology that not only lowers
overhead cost, but produces higher
efficiency. Other attractive features for why
one would want to use this technology would
include its good performance of inter-
operability between vendors, statistical
multiplexing of user data, and QoS
mechanism. In addition, because each
process of random byte blocks is simplified,
GFP imposes less stringent requirements on
the mapping and demapping process of data
links. By using the low BER feature of
modern communications, GFP also provides
improvement of the following areas: receiver
complexity, equipment
size, and costs. This
makes it a tech-
nology that is
perfectly suited
to high-
speed
transmission
links. For
example, this
would include such
links as: point-to-point SDH links,
wavelength channels, and dark fiber
applications in OTN.
LCAS defines a way to execute a hitless
adjustment of the bandwidth of the virtual
concatenated payload in the transport
network, thus allowing the ser vice
bandwidth to be adjusted to specifically suit
service requirements. Transport of the
signaling is carried out by way of SDH NEs
and the network management system. With
LCAS, effective payload can automatically
map into usable VCs. This means a contin-
uous adjustment of bandwidth, which
speeds up bandwidth provisioning, while at
the same time having no deleterious effect
on services. In addition, when failures occur
on the system, the system bandwidth can
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be dynamically adjusted, without the need
of manual operations. Hence, this feature
increases network utilization significantly,
while also offering guaranteed QoS.
ASON can set up and manage
connections dynamically, thus achieving the
functionality of automatic routing and
provisioning. If the next-generation SDH
MSTP is able to integrate standard functions
like, VC concatenation, GFP, LCAS and
ASON, then with the help of the
automatic routing and provisioning
functionality of Core ASON, such
a transport platform could greatly
enhance its support to data services in a
flexible and efficient manner. In addition,
the intelligent features of Core ASON
are expanded to the network edge, with
the outgrowth resulting in enlarged
intelligent coverage and higher
efficiency of the network.
Because MSTP based MAN is
facing stiff competition from optical
Ethernet, the MSTP has been forced to
lower equipment costs and offer more
flexible services. One of the most recent and
remarkable trends is to combine the MPLS,
so that the MSTP and MPLS are mutually
dependent, as they expand to the network edge
together. Once this occurs, then such MPLS
features as, flexible cross-domain data
networking, can be fully utilized.
Challenge and new
development of optical
Ethernet
Optical Ethernet, which originated from
LAN, represents a new type of Ethernet
technology that runs over a bare fiber . In
terms of architecture, Ethernet is a type of
end-to-end solution that processes Layer 2
switching, traffic engineering and service
provisioning at each part of the network,
thus eliminating the need for format
conversion at the network edge. In terms of
scalability, Ethernet is able to provide
incremental bandwidth on demand, with a
granularity of 1 Mbit/s, by changing the flow
policy parameters at the network edge, thus
expanding the capacity to 10M bit/s, 100M
bit/s, 1G bit/s, or even higher. In terms of
management, Ethernet network
management is simplified, largely because
SEPT 2005 ˙ ISSUE 18 2
 Expert’s Forum
Wei Leping, CTO of China Telecom
the same system can be applied
to each layer of the net-
work, thus quicken-
ing the pace of new
services into the
market.
In sum-
mary, the Eth-
ernet multi-
service plat-
form is es-
pecially suited
for network
applications
that mainly
deal with IP/
Ethernet traffic.
Such a platform can also
be deployed as an independent IP
MAN in small to medium-sized cities, which
have heavy IP/Ethernet traffic, or as the access
and convergence layers of the IP MAN in
medium to large-sized cities, which also have
heavy IP/Ethernet traffic. The core layer in
the above mentioned applications also
deploys high-end core routers. To date, some
enhanced new optical Ethernet solutions are
being applied to a few metropolitan multi-
service platforms.
Because Ethernet originated from LAN,
QoS is not an issue for LAN appli- cations.
However, when Ethernet expands to public
telecom networks, then differen- tial QoS
and SLA mechanisms will become necessary.
Up till now, legacy Ethernet still lacks a
reliable mechanism that would guarantee
jitter and delay performance in end-to-end
applications, and thus it fails to provide
standard QoS provisioning network-wide,
for real-time services. It also does not support
charge statistics that are required for nodes,
or networks shared by multiple users.
Second, Ethernet is specifically designed for
Internal use by LAN users, thus, a security
mechanism is not available. Once Ethernet
reaches out to MAN and WAN, a new and
more reliable security mechanism will be
required. Third, the OAM&P of Ethernet
is weak. This is the case, largely because the
public telecom network has to run and
maintain a large number of geographically
separated networks. Hence, strong OAM&P
ability, network-level management and
vision, as well as profitable business modes
are required. Fourth, optical interfaces of
3 SEPT 2005 ˙ ISSUE 18
Legacy Ethernet switches to offer multiple services, enjoy some QoS
are point-to-point con- and network management capabilities, along
nected, and thus with having higher survivability.
transmission Some Ethernet technologies already have
equipment is the ability to provide 50ms-level fast
saved, but the protection switching, have some use of a
built-in digital wrapper, forward error correction
powerful (FEC), as well as synchronization tech-
fault loca- nologies, thus allowing them to improve
tion capa- overall system performance and span the
bility and transmission distance. That is to say, some
complete new optical Ethernet technologies now
performance possess the functions and performance
monitoring required by public telecom networks. Except
capability are for extended and enhanced technologies
unavailable. such as; Q in Q, and MAC in MAC, which
As a result, Diag- are well-known technologies of legacy
nosis and trouble- Ethernet, various other standardization
shooting of faults occurring on organizations have also developed many new
the Ethernet is difficult, especially in optical Ethernet technologies. These would
complex and large networks. Legacy include quality improvement & assurance
Ethernet relies on spanning tree protocol standards such as; a resilient packet ring
(STP), as well as rapid spanning tree protocol (RPR), a multi-service ring (MSR), virtual
(RSTP), for protection purposes. Such private LAN service (VPLS), optical
protection mechanisms require several Ethernet (OE), and V-Switch. Moreover,
seconds, at least, for convergence. In each new technology has unique features.
addition, it is difficult to transport carrier- In the following discussion RPR and VPLS
level voice and data services. And finally, the are introduced, which perhaps are the most
costs of the fiber line increases significantly typical optical Ethernet technologies.
as network size increases, along with the As an enhanced Ethernet Layer 2
number of nodes. In a word, only after the protocol, RPR can work on SDH, gigabit
problems mentioned above Ethernet, or on bare fibers.
have been resolved, can Currently, the mainstream
Ethernet be consi- application is to apply
dered as a true it over SDH, thus it
multi-service becomes a built-in
platform and intelligent layer
used in large of the new-
public telecom generation
networks to MSTP.
provide RPR trans-
carrier-level mits IP packets
services. through the
In recent new MAC layer
years, optical into layer 1 of data
Ethernet has frame, or into bare
undergone consi- fibers, thus elimi-
derable develop- nating the need of
ment. Therefore, some of reassembly and assembly
its most recent technical for the pass-through IP packet.
solutions have been able to resolve most of These pass-through IP packets are directly
above mentioned problems, or at least, part forwarded, and thus, the process is simplified
of them. For instance, Legacy Ethernet and the switching capability is enhanced,
technologies have been immensely improving the performance and flexibility.
improved. As a result, Ethernet is now able Second, RPR features relatively high

bandwidth utilization for data services.
Moreover, statistical multiplexing and load
balance mechanisms are available between
the LAN ports of each node. Plus, the layer
2 protection mechanism is adopted, thus
making it unnecessary to reserve bandwidth
for protection purposes. In addition, MAC
protocol that features destination strip is
used and bandwidth can be reused.
Most
assuredly,
with all these enhancements, bandwidth
utilization of RPR in the mesh traffic mode
and consolidated traffic mode, considerably
exceeds that of the legacy SDH. Even when
compared with the next-generation SDH
that deploys virtual concatenation, RPR still
enjoys a number of advantages like, finer
bandwidth granularity, and statistical
multiplexing. Third, RPR can ensure the
quality of circuit switched services and
private line services, as well as provide 50ms-
level fast protection switching. Fourth, RPR
has automatic topology discovery and
enhanced self-healing capabilities and also
supports plug-and-play. And finally, RPR
can not only effectively support two-fiber
bidirectional ring topology, but it can also
support dynamic statistical multiplexing for
traffic in both directions.
Considering its excellent consolidated
features and enhanced data access
capabilities, RPR is well suited to access layer
applications of MAN. However, RPR
requires the addition of a MAC layer, thus
increasing system complexity and costs
accordingly. Second, due to the lack of a
c r o s s r i n g s t a n d a rd f o r R P R , R P R
information cannot cross rings, thus making
it difficult for RPR to support complex
networking topologies.
However, the combination of RPR and
MPLS can configure the crossring traffic
flow as the same label switched path (LSP),
thus enabling the interconnecting and end-
to-end provisioning of traffic among
multiple RPR rings. Also, by
applying MPLS, traffic
engineering network-wide is
available, thus supporting
space reuse, and providing
guaranteed bandwidth
and end-to-end service
connections, with
guaranteed QoS.
This greatly enhances
the flexible networ-
king of data services,
while at the same time,
expanding the appli-
cation to complex topo-
logies such as, the mesh
network.
VPLS is a multi-point
interconnected Layer 2 VPN
technology that is developed on the basis
of a point-to-point MPLS. For the user, all
the nodes look like they are connected to a
dedicated LAN, while for the service
provider, IP/MPLS infrastructure can be
reused to offer various services. This
technology is based on MPLS and
independent of physical topologies, as well
as achieving optimized allocation of
resources through the traffic engineering of
MPLS. VPLS adopts RPR, instead of STP
and RSTP of Ethernet, to offer 50ms-level
fast protection switching. VPLS also
supports a scalable access control list (ACL)
at Layers 2/3/4, and the ACL control on a
user basis, thus providing more reliable
control and policy mechanisms. VPLS
features good Layer 2 consolidated
capability and the quantity of its users
exceeds the 4,096 restriction of the
VLAN IDs of legacy Ethernet. VPLS
p r ov i d e s l a ye re d V P L S ( H - V P L S )
and improves scalability. VPLS can
distinguish and guarantee the different traffic
of users, simplify network ser vice
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configuration, and speed up service
provisioning. VPLS can easily identify the
borderline between the service provider and
the customer premise network, for
convenience of management.
Of course, all these mentioned features
are not free for use: added complexity and
development costs are figured into the overall
cost to users, which are partly offset by the
low-cost advantage of Ethernet.
It is expected that with the continued
increase of IP/Ethernet traffic on the
network and emergence of Ethernet-based
new technologies, that the optical Ethernet
multi-service platform will become more
and more popular in MANs.
The development,
challenge and
application of 40Gibt/s
system
Thus far, networks have been equipped
with the mass 10Gbit/s system and many
telecommunications companies have started
to conduct field experiments, using the
40Gbit/s system. In network application,
routers with 10Gbit/s interfaces have
been widely applied, while those with
40Gbit/s interfaces are just starting to
be employed. In order to improve the
efficiency and function of the core network,
the most reasonable approach would be
to develop its single wavelength rate, so that it
is transformed into a 40Gbit/s transmission.
Generally speaking, the main advantages
to adopting a 40Gbit/s transmission are as
follows. Making use of the transmission
frequency band more efficiently, so as
to achieve higher spectral efficiency.
Realizing mass commercial use and reduce
the cost for transmission, when the cost
of the 40Gbit/s system is cut down to less
than 2.5 times that of the 10Gbit/s system,
then practical application and mass
commercial use will be reasonable. Reducing
the cost and complexity of OAM and
the quantity of required spare parts, since
four NEs are replaced by only one NE.
Improving the efficiency and function of the
core network.
However, the transmission rate of a single
wavelength can be restricted by the
SEPT 2005 ˙ ISSUE 18 4
 Expert’s Forum
Wei Leping, CTO of China Telecom
migration ratio of IC materialís electrons and
holes, transmission media dispersion,
polarization mode dispersion (PMD), and
the cost performance of an application
system. At present, IC material is no longer
a key restriction, but the other three factors
have created a bottleneck for the utility of
such a transmission rate.
As far as its practical application, the
40Gbit/s transmission system also faces some
challenges. The external modulator must be
adopted. The driving integrated circuit that can
output sufficient voltage to drive the eternal
modulator is not advanced enough. NRZ
modulation has been used for years, but it is hard
to tell whether or not it can work efficiently
and reliably with the 40Gbit/s system. At
least, the long-haul transmission is difficult
in this system, so it is inevitable to turn to
better RZ code or other modulation
methods with even higher efficiency, such
as CS-RZ code, DPSK-RZ code, CRZ code,
super CRZ code, D-RZ code, pseudo-linear
RZ code, soliton modulation and so on.
Besides technical factors, the economy is
also a crucial factor that must be taken into
consideration. From past experience, we know
that the 40Gbit/s system can achieve mass
application, only when the cost is 2.5 times
less that of the 10Gbit/s system to run. Thus,
in theory, the ideal application for the 40Gbit/s
system is still in a long-distance network,
simply because it requires the largest capacity
and lowest bit transmission cost.
In China’s backbone networks, however,
fiber utilization is less than 30% and SDH
circuit utilization is less than 50%, although
channel utilization has exceeded 70%,
primarily due to large-scale construction in
the past few years. Therefore, only expansion
in WDM application is needed, for the
general capacity of the optical cable network
reveals a surplus, and so there is no
immediate need to upgrade the whole
network to 40Gbit/s.
Another key factor is the polarization
mode dispersion (PMD) of optical cable.
It is said that the PMD attribute of the cable
network in China, except through a few
routes, is still able to get by with using the
current 10Gbit/s transmission
system. However, when the rate goes up to
40Gbit/s, the transmission distance that is
limited by PMD, will be reduced in inverse
proportion to the square of the transmission
5 SEPT 2005 ˙ ISSUE 18
rate. This means that the transmission
distance will be reduced to one sixteenth of
a 10Gbit/s system, thus the second order
PMD will have greater impact. Whether or
not the PMD attribute is compatible with
the long-distance transmission in the
40Gbit/s system still needs to be verified,
by carrying out a large-scale field test.
However, as for short-distance trans-
mission, since the dispersion compensation,
optical amplifier and external modulator are
not needed, then the 40Gbit/s system is able
to provide the lowest cost per bit. Hence,
the problems mentioned above no longer
p re s e n t a n y o b s t a c l e s . Fi r s t , It i s
recommended to start the 40Gbit/s system
with the application of short-distance
interconnection, which includes the
interconnection between routers, switches
and transmission equipment in the local
exchange, and then it can be extended to
apply to the MAN-range, and finally, to
relatively long, long-distance application.
The development of the
ULH WDM System
In recent years, along with the many
technical breakthroughs that have been
occurring, as well as with the economic boost
that the market has been experiencing,
has also been the rapid development of the
WDM system. Up till now, the 1.6Tbit/s
WDM system has been in large-scale
commercial use. In order to decrease
the number of electrical regeneration points,
cut down initial costs and operation
costs, improve system reliability and cope
with increasingly longer traffic drop
termination distance of IP service, then the
all-optical transmission distance of the
WDM system will also have to be greatly
extended, from the current 600 km, to over
2000 km. In such a case, then the WDM
system’s main enabling technologies
would need to include: distributed
Raman amplifier, FEC (Forward Error
Correction), dispersion management
technology, strict optical equalization
technology, and a high-efficiency modula-
tion format.
Generally speaking, the main advantages
of laying the ULH (ultra-long haul) WDM
system are as follows. It can reduce the
system cost and signal delay, simplify the
provisioning of a high speed circuit, and
speed up the ser vice supply, with
considerable decrease of electrical
regenerative repeaters. Guarantee highest
bandwidth efficiency, with the realization of
traffic grooming on the edge of the core
network. Reduce operation and
maintenance costs of the network, with
considerable decrease of electrical
regenerative repeaters. Reduce network
upgrade costs and simplify the networking
structure, with a further improvement in the
transparency of networks. Thus, the
evolution towards to a mesh network is also
made easier.
A t p re s e n t , U L H t e c h n o l o g y i s
completely developed and it has
some practical network applications.
However, only a few countries or regions
are in need of such a ULH circuit for long-
distance transmission, so its application
scale is limited. As a result, equipment
costs are higher, largely, for a lack of being
able to take advantage of mass production,
which also means that the total cost of
running the network is not as cheap as
expected. Hence, to some extent, the cost
also affects the application of ULH
technology.

The development of the
Metropolitan CWDM
technology
Along with the development of
technology and service, WDM technology
is also expanding, from long-distance
transmission, to the metropolitan area
network (MAN). Since MAN transmission
distance is usually shorter than 100 km, the
external modulator and optical amplifier that
must be used in the long-distance network may
not be adopted here. The increase and ex-
pansion of the wavelength number will no longer
be restricted by the frequency band of the
optical amplifier. Moreover, it is acceptable
to use the optical source, multiplexer,
demultiplexer, and
other components,
with comparatively
broader wavelength
interval and lower
The cost of components, as well as the
demands for
wavelength pre-
whole system will be greatly reduced.
cision and stability.
Thus, the cost of
components, as well as the whole system will
be greatly reduced, for all the above reasons.
Although the cost of the metropolitan
WDM system is markedly lower, than that
for the long-distance WDM network,
however, its total cost is still relatively high
when compared with similar technologies
that are presently available. In particular,
when the transmission distance is so long
that an optical amplifier is required, then it
becomes necessary to develop a low cost
optical amplifier. Currently, few customers
and applications apply the whole wave-
length bandwidth on the network edge.
Furthermore, the WDM multi-service
platform is mainly applicable to the core
layer, especially to those applications which
have large capacity expansion demand and
long transmission distance.
The concept of coarse wavelength
division multiplexing (CWDM) has
emerged in response to demands to further
reduce the cost of operating the metropolitan
WDM multi-service platform. This kind of
system has three typical wavelength
combinations: 4, 8 and 16 wavelengths, with
up to 20 nm wavelength channel intervals,
and ±6.5nm allowance of wavelength drift.
Such features help to lower laser specification
requirements, and thus, reduce laser costs.
In addition, the CWDM system has a very
low requirement in regards to laser
wavelength precision, hence, no cooler or
wavelength locker is needed. In this instance,
laser features not only help to low power
consumption, but its size will also be very
small. Furthermore, because such a laser can
be packaged with a simple coaxial structure,
its packaging cost is lower than traditional
dish-shaped packaging. In total, the laser
module cost can be reduced by as much as
two-thirds. As for the filter, the typical
dielectric thin film filter, with 100 GHz
intervals, needs 150 layers of film plating,
while the CWDM filter, with 20 nm
intervals, only needs 50 layers. Therefore,
the product yields of the CWDM filter can
be greatly improved, with an estimated cost
cut, of at least 50%.
In a word, the CWDM system has much
lower requirements than the DWDM
system in regards to laser output power,
temperature susceptibility, dispersion
tolerance, and even laser packaging. Also,
with low requirement on the filter, the
system cost is expected to drop considerably.
In particular, the 8-wavelength CWDM
system has an optical spectrum, avoiding the
OH absorption peak, which is near 1385
nm, and is applicable to any kind of optical
fiber, so it will most likely be put into
practice first.
In regards to service application, the
CWDM transceiver has been applied in
conjunction with the GBIC (gigabit
interface converter) and SFP (small form-
factor pluggable), and can be directly
inserted in the gigabit Ethernet switch and
fiber channel switch. The CWDM
transceiver offers smaller size, lower power
consumption and lower cost, than the
related DWDM device. Obviously, when
one considers such factors as service
demands and lower cost, then it would
Huawei Technologies
appear that CWDM has a very bright future
in China’s MAN development.
From point-to-point WDM
transmission to ASON
Although the ordinary point-to-point
WDM communication system provides huge
transmission capacity, it offers only primitive
transmission bandwidth. Flexible nodes are
needed to realize highly efficient and flexible
networking. However, due to the complexity
of the current electrical DXC (digital cross
connect) system, its node capacity cannot
keep pace with the increase of network
transmission link capacity. As a result,
further capacity expansion relies on optical
nodes, that is OADM
(optical add/drop
multiplexer) and OXC
(optic cross connect).
OXC falls into two
categories regarding
technological imple-
mentation: one is imple-
mented with an electrical
cross connect matrix, which is sometimes
abbreviated as, OEO, or electrical OXC; the
other is implemented with a pure optical
cross connect matrix and is sometimes
abbreviated as, OOO, or all-optical OXC.
The former (electrical OXC) can easily
make signal quality supervision and
eliminate transmission impairment, and its
features come at a low cost, if providing
relatively small capacity, and it is also
compatible with current transmission link
technology. Above all, electrical OXC can
process and allocate bandwidths that are
smaller than a whole wavelength, and
therefore, is able to meet current market
capacity requirements. However, the
capacity expansion of electrical OXC still
relies on the continuous improvement of
semiconductor chip density and
performance, which has not been able to
keep pace with the increase of network
transmission link capacity.
In regards to the latter (all-optical OXC),
first, it does not need the O/E conversion
process, thus a large number of O/E
conversion interfaces are saved. Also, thanks
to the removal of the bandwidth bottleneck,
all-optical OXC capacity is expected to
SEPT 2005 ˙ ISSUE 18 6
 Expert’s Forum
Wei Leping, CTO of China Telecom
expand significantly in the near future.
Hence, the transparency that also comes
with having a huge capacity, will be able to
support a variety of client-layer signals, and
its low power consumption promises to have
a long technical life. However, the band-
width of all-optical OXC equipment must
equal at least a whole wavelength, so that
such bandwidth can be operable, which when
viewed at economically, needs much more
consideration. Second, the existing trans-
mission link may need to be reconstructed
in order to accommodate all-optical switch
application. Third, it is difficult to achieve
performance monitoring in the optical area.
Fourth, the transmission link connecting all-
optical switches is composed of a series of equa-
lized optical amplifiers, which makes it diffi-
cult to perform quick and dynamic wave-
length routing in a finely equalized mesh network.
And finally, all-optical network coverage
is limited, due to the non-linear impairment
of dispersion. Thus, when one considers all
these factors, especially an inadequate
demand for capacity to be flexibly allocated
by the network, then this tends to hamper
the development of an all-optical OXC.
Notwithstanding, rare applications of an all-
optical OXC have been seen in a few places
around the world. However, it is not too
difficult to believe, that with the continuing
development of network capacity and
increasing demand for better-quality
network services, that the application of the
all-optical OXC will experience more
worldwide acceptance in several years.
With the continuous consolidation of
network traffic to dynamic IP traffic, also
comes the requirement for a more flexible
and dynamic optical network. The latest
trend is to introduce ASON (automatic
switched optical network), so as to replace
static optical interworking, with dynamic
optical interworking. The advantages of such
a replacement are as follows. Network
resources can be dynamically allocated to
routes, and the capacity expansion time in
the service layer is shortened. Services can
be provided and extended very quickly. Both
initial construction cost and operation cost
of the network are lowered. The optical layer
is capable of restoring services very quickly.
The demand for supporting system software
is lessened. The chance of human error is
also lessened. New wavelength services can
be introduced, such as bandwidth on
demand, wavelength wholesale, wavelength
7 SEPT 2005 ˙ ISSUE 18
leasing, leveled bandwidth service, dynamic
wavelength allocation and leasing, dynamic
route allocation, and OVPN (optical virtual
private network).
Having been attracted by all the above
mentioned advantages, such world-class
telecom operators as, AT&T, BT and NTT,
have now successfully introduced OXC and
ASON into their networks. As a result,
AT&T has now been able to simplify its
networking structure, which has not only
resulted in greater efficiency of bandwidth
utilization, but has also helped to lower its
initial cost by 50%, and its operation cost
by as much as 60% (through simplified
planning, provisioning and maintenance).
As network signaling and routing are
involved in ASON, it is very important to
have a unified standard. Theoretically, there
is little conflict between the three
standardization organizations (ITU, IETF
and OIF) that are currently operating, each
within its own specific field. But in point-of-
fact, conflicts do sometimes occur in regards
to detailed technical issues and specific
choices, due to such factors as, technical, cul-
tural and political diversity. Thus, a greater
degree of time and effort will be required before
better coordination between them improves.
From the standpoint of transport plane,
the OEO hardware switching platform is
already at an advanced enough level to be
put into commercial use, while the OOO
hardware switching platform has yet to be
practically tested for its reliability;
principally, because it has a strict bandwidth
requirement and lacks capacity demand.
Nevertheless, from the standpoint of control
plane, its standards are almost at an advanced
enough stage that it will probably not be long
before, it too, will be put in to practical use.
OIF UNI 1.0 is mature enough and multi-
ve n d o r s i n t e r o p e r a b i l i t y h a s b e e n
demonstrated. As for UNI2.0, its common
features and RSVP signaling section are
expected to be finished close to the
beginning of 2006. I-NII interface needed
not be standardized. E-NNI 1.0 is intended
to fulfill networking within the network
which is composed of different vendors, but
run by the same operator. Currently the
signaling section is mature, routing section
is close to mature and automatic discovery
section will take some time to fulfil. From
the standpoint of management plane, the
ASON network management function is
weakened, due to introduction of control
function. Therefore, some functions have
now been transferred to the standards con-
trol process. In the long run, this will benefit
different manufacturers in regards to inter-
connectivity, but it is not believed that this will
pose a major restriction on ASON application.
Over the past decade in China, the
development of optical communications has
always been spurred by the expansion of
point-to-point link capacity. However, in
recent years, highly dynamic IP traffic and
private line service have been experiencing
rapid, steady development, and the network
has been providing a relatively huge capacity
for users. In addition, competition has also
become fiercer, so the development from a
transport network, to the dynamic ASON
network, has now been put on the
forthcoming agenda. To construct a highly
flexible, dynamic and reliable transport net-
work, which offers a huge capacity, is a key
step in the transformation of China’s trans-
port network, and also is considered to be a signi-
ficant project in China’s network development.
Development and
prospect of FTTH
technologies
There are two options in making FTTH
technologies become a reality: a point-to-
point active Ethernet and a point-to-
multipoint passive optical network.
The advantages of having an active
Ethernet include: The bandwidth is
guaranteed through dedicated access. The
equipment is simple and cheap. The

transmission distance is long. The cost is
suitable, depending on the number of users
(direct proportion). There is low investment
risk and a high efficiency of port utilization,
so the cost is low in areas of low user density.
The disadvantages of having an active
Ethernet include: Users cannot share end
office equipment and optical fibers, because
they are for dedicated use.Therefore, active
Ethernet is not suitable in areas of high user
density. Active Ethernet requires a multi-
point power supply and standby power
source, which makes power supplying and
network management very complex. There
is no unified standard for active Ethernet,
so compatibility issues arise.
The advantages of a passive optical
network include: First, passive optical
network is a pure media network, which
avoids impacts caused by electromagnetic
interference or lightning. Fault rate is
lessened, bandwidth bottleneck is removed,
reliability is improved, and maintenance cost
is cut. Second, passive optical network has
good trans-
parency and wide
bandwidth. It is
applicable to GPON will allow operators to execute a
signals of any
format and any smooth transition, from their old traditional
bit rate. It also
economically
supports triple-
TDM, to the more current all-IP network.
play services.
Third, users share end office equipment and
optical fibers, so the cost is relatively low,
with shorter distance of optical fiber, and
less transmitting and receiving equipment.
The marginal cost per user drops sharply,
so a passive optical network is suitable in
areas of low user density (as opposed to each
area, where there are sub-areas with relatively
high user density). Last, passive optical
network is well standardized.
In a passive optical network, the
technology that should be used for layer 2
has not been determined yet. A few years
ago, the ATM-based APON was believed to
be a good solution, but its use finally faded
out, due to its high cost, limited service
capacity, low bit rate, low efficiency and the
decline of ATM technology itself. However,
more recently, with the emergence and
development of IP technology, the concept
of EPON has been brought forward. With
a structure similar to APON, and based on
G.983, EPON keeps APON’s physical layer
(PON), while replacing the data link layer
protocol (ATM), with Ethernet. Thus, EPON
can provide services with broader band-
width, lower cost, and a wider service range.
The basic features of EPON technology
include: ATM and SDH layers are removed,
so that initial cost and operation cost are
both lowered. A large quantity of advanced
Ethernet chips can be easily applied, while
the cost remains very low. It provides several
security mechanisms such as, VLAN, CUG
(closed user group), and VPN.
In 2001, when the IEEE was devising
EPON standards, FSAN was also starting
to devise GPON (Gigabit Passive Optical
Network) standards. Soon after, ITU-T also
participated in the development of GPON,
and passed two GPON standards in 2003,
the G.984.1 and G.984.2., respectively.
When compared with EPON, GPON offers
a few advantages. First, according to the
latest standards, GPON can now provide a
2.488 Gbit/s downlink bit rate, as well as
several standard uplink bit rates. GPON can
transmit for at least 20 km, with the split ratio
of 1:16, 1:32, 1:64 and even 1:128. There-
fore, GPON is superior to EPON in terms of
the bit rate it can provide, bit rate flexibility,
transmission distance and split ratio. Second,
GPON applies two adaptation methods,
which includes the traditional ATM and
standard GFP (Generic Framing Procedure).
GFP can encapsulate all sorts of signals
into the existing SDH network with
considerable flexibly and efficiently. It can
be applied to different types of signal format
or transmission standards. Third, GPON is
capable of flexibly supporting TDM voice
service, because the GPON convergent layer
is essentially synchronous. In contrast,
EPON has no specific standard on TDM
voice, so consequently, manufacturers
operate, each in their own way, which leads
to poor interoperability and uncertain
performance. Fourth, GPON has an
abundant number of network management
functions, which are considerably more than
Huawei Technologies
those provided by EPON. Nevertheless, the
EPON network management system is
greatly improved compared to ordinary
Ethernet, and can meet the basic
management requirements.
Generally speaking, GPON is an
operator-driven standard. Therefore,
operators’ benefits are given more
consideration. It features a higher and more
flexible bit rate. Its generic mapping format
can be applied to any existing or newly
formed services. Its OAM&P function is very
rich and transmission efficiency to all sorts of
services, even including the TDM service, is high.
Thus, it is only natural to assume that
GPON may become the final solution that
will allow operatorsí to execute a smooth
transition, from their old traditional TDM,
to the more current all-IP network.
Apart from system technologies, FTTH
also involves active/passive optical
components, fiber-optic cable technology,
connection technology, laying technology,
test technology, network management
technology, and
so on. However,
breakthroughs
in these areas are
required. Hence,
any bottleneck
in these tech-
nologies, cost
and operation
may hamper the
large-scale development of FTTH.
Therefore, FTTx, and especially FTTH, still
require lots of fundamental work and R&D
before these technologies become fully
applicable. Although recently the price of
FTTH equipment has dropped
considerably, the price of EPON still
remains at about $300 per user for triple play
service, which is many times more than
ADSL. There are still high risks involved
where video services are concerned, largely
due to uncertain policies and an
unpredictable market. As a result, China is
not quite ready for any large-scale
commercial use of FTTH, for it is still in
the early stages of undergoing field testing
and commercial trail. As the 2008 Olympic
Games and 2010 World Expo draw closer,
so will the practical use of FTTH in China.
FTTH is no longer considered to be too lofty
a goal to achieve, but with continued
patience and proper preparation the road to
success may be just around the corner.
SEPT 2005 ˙ ISSUE 18 8