How a full-fiber strategy enables ... - Huawei doesn’t just provide E2E solutions for operators, it also helps ensure the healthy development of their services with E2E commercial

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How a full-fiber strategy enables operators to build full-service networksFiber networks are needed to extend and boost the density of many services, including mobile transport, enterprise cloudification, and home broadband. For operators, the efficient planning, deployment, and utilization of fiber networks is now a core competitive strength and fiber a key asset.

By Qiu Chao, Vice President, Access Network Domain, Huawei

We’re entering a new

era of development

in global information

technology and

the global economy. Society is

becoming digital and smart, driven by

extensive basic connectivity, ultra-high

bandwidth, and a superior experience.

But, if operators want to provide basic

connectivity, it’s essential they build

full-fiber networks that can support

future service development.

In 2010, 50 percent of the world’s

operators provided fixed-mobile

convergence (FMC) services, but a

decade on, 90 percent provide full-

service access. Not only have they

expanded their service scope, but

they’ve also cut customer churn by 50

percent and boosted combined ARPU

by two to three times. For operators,

FMC full-service operations are

strategically vital.

Full-fiber networks unlock value

From a service development

perspective, whether it be 5G-ready

mobile transport or business-oriented

leased line that supports enterprise

cloudification, you need an optical fiber

service to support it. Leading operators

are investing heavily in building fiber

network infrastructure and managing

it as a strategic resource. At the same

time, fiber networks are enticing many

strategic investors as they deliver stable,

high returns. For example, when Dutch,

Indian, and Thai operators packaged

fiber assets, it drew investment from a

number of pension funds.

The evolution of the telecom industry

can be viewed as a continuous process

of bringing optical fiber closer to the

user and increasing density. As fiber

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networks have developed from backbone

to metro and then to the access networks

of today, they’ve moved closer to network

terminals.

Fiber used to be deployed only in areas

with high user density. Today fiber is almost

ubiquitous, supporting mobile transport,

enterprise leased lines, and home broadband

services. And 5G, for example, depends on a

fiber backhaul network. A leading operator in

China initially configured its 5G base stations

to leverage almost 100 percent fiber backhaul,

while a pioneering Korean operator has set a

requirement for 90 percent fiber to the site.

Leading European operators have set targets of

up to 70 percent, with a sub-500 m coverage

range for 5G sites. This is equivalent to how

fiber to the neighborhood (FTTN) and fiber

to the home (FTTH) deployment is becoming

increasingly dense.

One advantage of fiber is that it offers long-

term usage. Once laid, it has a lifecycle of up

to 30 years. Moreover, the cost of materials

from the increasing number of fiber cores

accounts for a very small proportion of the

whole end-to-end cost of fiber deployment. As

such, operators should consider future multi-

service development when first planning fiber

networks. This should encompass not only the

operator’s own services, such as enterprise

leased lines, mobile transport, and home

broadband, but also more service scenarios like

safe cities.

One incumbent operator in Shanghai has

achieved incredible success in fiber services.

Staying one step ahead when it comes to

building and leveraging a full-fiber network, the

operator has even pioneered construction of

China’s first Gigabit City.

The operator started to boost investment in fiber

infrastructure in 2016. By 2019, it had achieved

99 percent fiber coverage, with 250,000 10G

PON ports deployed in its network, covering

over 20,000 gigabit-neighborhoods. It boasts

10 million gigabit-fiber users and has deployed

Smart Wi-Fi in 1 million homes.

It has also promoted the release of a Gigabit

City Construction Performance Indicator System

that can be used to evaluate the level of

development of urban gigabit broadband and

5G networks and provide a guide for urban

gigabit broadband and 5G construction.

Full-fiber service grid

Typically, operators spend 10 to 15 percent

of CAPEX on fiber on an ongoing basis.

Given such a huge investment, they need to

ensure rollout occurs in the most efficient way

possible. A leading operator in China provides

a great example of how to do so. After it

obtained a fixed service license at the end of

2013, the operator was faced with a lack of

fiber infrastructure coupled with the need to

invest in 4G infrastructure. The operator had

previously adopted an on-demand approach

to construction and lacked unified FMC

coordination and planning because its fiber

construction is project-driven. However, new

service requirements prompted it to consider

more efficient ways to build a basic fiber

network.

After a period of research and trial and error,

the operator devised a plan to implement grid-

Typically, operators spend 10 to 15 percent of CAPEX on fiber on an ongoing basis. Given such a huge investment, they need to ensure rollout occurs in the most efficient way possible.

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based integrated service areas on its

fiber network. The plan was based

on the business division’s business

plan. Planning was based on each

grid’s service development prospects,

with the requirements of mobile

services, enterprise services, and home

broadband services considered as a

whole. And fiber was deployed in

advance to lay a foundation for the

fiber infrastructure and support future

service development flexibility.

By adopting a full-fiber service grid

for the planning and construction of

its fiber network, the operator not

only dramatically cut the amortized

investment costs of individual services,

but also considerably reduced service

provision time and shortened ROI. In

one province, average rollout time for

enterprise services dropped from 25 to

7 days, average OSP construction cost

for mobile transport base stations fell

by 50 percent per site, and average

OSP cost for home broadband services

decreased by 84 percent.

Why does the full-fiber service grid

deliver such tremendous benefits?

The most important factor is that it

achieves full coverage through unified

planning, avoiding multiple instances

of fiber network construction driven

by the traditional project-based model.

When building a fiber network,

construction accounts for 50 percent

of costs and ODN components for 30

percent. Yet, a 24-core optical cable is

only 18 percent more expensive than

a 12-core cable, but the deployment

costs are practically the same – so

although one-time planning and

construction like this introduces a

small short-term bump in costs, it

eliminates secondary construction

and materials costs. It also reduces

the preparation time needed for

subsequent service development.

At the same time, planning for “thick

coverage and short access”, which

means placing the fiber access point

as close to the user as possible,

preferably 50 to 80 meters, can

dramatically lower the cost and time

of subsequent service rollout, saving

end-to-end costs and time. Thick

coverage and short access on the

basis of full network coverage is a key

reason why the full-fiber service grid

improves revenue.

E2E solutions power full-fiber network strategies

Leading operators recognize the

strategic importance of building

full-optical networks. In China,

Japan, and Korea, where fiber

network penetration is high, full-

optical network coverage has been

achieved. Europe is stepping up

copper to fiber replacement to satisfy

the requirements in EU DSM2025.

Southeast Asia, South Pacific, and

Latin America are all constructing full-

optical networks. In Thailand and

Vietnam, more than 50 percent of

homes are connected with fiber, and

both the UAE and Qatar are using

fiber to serve users better. In Africa, all

operators are developing full-optical

networks to serve the majority of

users. For operators, the next three

years is the best time to build full-

optical networks in readiness for mass

popularization in five years.

Huawei doesn’t just provide E2E

solutions for operators, it also helps

ensure the healthy development of

their services with E2E commercial

solutions for the planning, construction,

and operation of full-fiber networks.

Huawei uses a Smart CAPEX solution,

with modeling based on population

density, cost, and coverage, to help

operators plan business outcomes

for their fiber networks, plan and

construct integrated service areas, and

achieve innovative optical splitting with

unequal ratios and pre-connections

to optimize deployment efficiency

and quality. Of course, Huawei will

also provide 10G PON for integrated

service development and support next-

gen PON technology for future access

networks.

Through strategic cooperation with

Huawei, operators can focus more on

business and service development as

well as building competitive advantages

and business success.

Huawei will work with operators to

build full-fiber networks to support

the future digital economy and usher

in a smart society.

How a full-fiber strategy enables operators to build full-service networks / Focus