At first glance, the idea of open communications networks seems like an idealistic utopia, something that will always be for the “next generation”. The reality is that such networks are being deployed today in Europe! Fiber-to-the-home is revolutionizing the European communications market, giving the end-user a real choice.
In many areas, the deployment of fiber-to-the-home (FTTH) is seen only as the way to increase bandwidth. Indeed, most of the passive optical network (PON) deployments in Japan and the US are geared towards providing a higher bandwidth than current cable internet or DSL technology. In Europe, the point-to-point (PTP) fiber deployments not only provide an even higher bandwidth per user, they also enable open networking. The key to this “openness” is Ethernet. Based on Ethernet, transparent connections can be made between the users in the network and the providers that offer communication services.
Take the FTTH network of Amsterdam as an example: 40000 homes are currently being connected by optical fiber. The fibers are terminated in Ethernet switches in one of four central offices. Each home is provided with a 100 Megabit/s home gateway that features multiple Ethernet ports in addition to telephony and broadcast TV ports. On each port, a service provider can offer one or even a package of services. For example, one user could take services from say four providers, while his neighbor subscribes to perhaps four completely different providers. Changing from one provider to another takes no more than a single mouse click in the network management system.
The Amsterdam example shows that it is the combination of high bandwidth and flexibility in the network that makes FTTH a viable business. The high bandwidth enables new services like interactive IPTV in addition to the normal “triple play” voice, internet, and broadcast TV services. The flexibility ensures that users get a choice and are therefore attracted to subscribe to the FTTH network. In addition, the transparency of the network makes the management simple and low-cost, making the operating cost of the network lower than for a traditional copper-based access network.
From a technical point of view, Europe’s PTP networks are simple. Bidirectional transceivers, sending and receiving optical signals at 100 Megabit/s are installed into the central office switches. High fiber-count cables, with up to 1000 fibers in a 1-inch diameter, lead the fibers from the central switches towards the homes. Most of Europe’s networks are buried, and ingenious methods have been developed to deploy the individual fiber cables to each home, without actually opening up the ground in front of the homes. At the home gateway, the optical signal enters a similar bi-directional transceiver, and is converted directly to Ethernet. Based on Ethernet tags containing VLAN and quality-of-service information, the communication services are separated and are brought to the correct user ports. The simplicity of this approach directly translates to high reliability, ease of management, and upgradeability.

Deployment of fiber in the Amsterdam Citynet project.

An often-heard remark is: why deploy fiber if you are only doing 100 Megabit/s? The answer is obvious: the world is not stopping at 100 Megabit/s! In fact, our company is introducing a 1 Gigabit/s home gateway this year to meet the needs of the most bandwidth-hungry end-users. Targeting services involving new standards such the new Blu-ray Disc and high-definition (HD) video content, Gigabit/s home networking will enable the distribution of (HD) content, both television and gaming. Also here, the open network gives the user a choice: while the most demanding users can benefit from the highest speeds, the majority of the users can choose a moderate bandwidth that suits them best. It is a win-win for end-user and service provider. The end-user gets to choose, and the service provider can maximize its revenue since they provide premium services to those users willing to pay.

Home gateway installed in a Slovenian home (courtesy of Optisis d.o.o.).

It is interesting to compare the situation in Europe to the FTTH deployment in the United States. Initiatives for FTTH in the US started after the Federal Communications Commission (FCC) released new regulations: the mandatory requirement for operators to unbundle FTTH was removed. This meant the operators deploying FTTH felt safe that their investment was protected, and that they wouldn’t be opening their newly built network to the competition. Good news for the operator perhaps, but bad news in terms of the openness of the network. A US subscriber to FTTH does not have a choice on the FTTH network; if the user wants to change provider, he has to change from fiber back to copper!
In Europe, such regulations protecting the operator do not exist. Yet, many operators, including the large Dutch incumbent KPN, are deploying FTTH in significant volumes. Do they run the risk of losing their investment? The answer is no! More and more, Europe’s operators are choosing an open network model, where the operation of the network is clearly distinguished from the provision of services. In the Dutch city of Enschede, users can choose between multiple service providers, all being delivered on KPN’s FTTH infrastructure. Based on PTP Ethernet, switching from one provider to another simply means assigning a different VLAN to a port on the home gateway. In a way, one could say that Europe’s operators are opening their networks even before regulations come into play to force them!
On the one hand, this strategy seems idealistic, however, from the point-of-view of the operator it makes prefect business sense. Europe’s operators have realized that there are really two distinctive businesses: first, selling Megabits to each home and second providing differentiated services to the end-users. These roles are very different. Delivering bandwidth implies building fixed infrastructure (fiber in the ground), lots of equipment and servicing. Providing services on the other hand means obtaining content, enabling communication functionality (Internet, telephony, etc), and advertising to end-users. Essentially, a given home will take the bandwidth from a single source, like today’s electricity network, but will use it for a whole variety of services, just like the things that run on electricity.

Close up of a typical FTTH home gateway showing the users ports voice, broadband data and CATV.

Coming back to how to realize such open service networks, Europe has been considering several networking technologies. Rather than end-up in a technical discussion on the pro’s and con’s of PON versus PTP, the operators have considered which technology will get the maximum numbers of users onto the network. In a PON network, open networking is an issue, and PON is therefore only suited to vertically integrated operators. This makes it difficult for an end-user to change from a trusted copper-based network with a familiar operator, to a new – therefore un-trusted – fiber network from a different operator. With PTP, open networking comes naturally; the end-user has to choose the provider he wants. This lowers the hurdle that end-users have to overcome, and therefore strongly increases the acceptance of FTTH.
Fiber-to-the-home is therefore not just a new exciting technology, but is much more a new way of providing and enabling communication services in our 21st century communications society. Making the right technology choices that enable this new way of communication, will be a crucial factor for network operators in the coming 5 years.

Biography
Genexis was founded in 2002 with the objective of serving the upcoming fiber-to-the-home market. With an experienced team, with backgrounds in long distance optical communications and networks, Genexis introduced the first fully integrated home gateway for the European FTTH market. In 2006 this product was selected for the Citynet project in Amsterdam, one of the leading European FTTH deployments. Today, Genexis’ home gateway products are used by FTTH operators throughout Europe, including Dutch incumbent KPN. In addition, Genexis is a member of innovative programs aimed at the development of fiber-to-the-home. Genexis is also a member of the FTTH Council Europe.

Gerlas van den Hoven started his career at Philips Research in the area of components for long haul and metro networks. He worked as product line manager for optical amplification at JDS Uniphase, where he became part of the JDSU Netherlands management team. After JDSU, Gerlas worked for Genoa Corporation as VP Products. Here, he developed the market for low-cost integrated optical amplifiers for the metro-access market. In 2002, Gerlas co-founded Genexis together with a team of people with experience in the fiber-optic communication market. Gerlas van den Hoven holds a PhD on the subject of silicon-based photonic materials.