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The FTTP RFP launched earlier this year has resulted in a short-list of three potential suppliers, said Greg Evans, Vice President of Service & Access Technology for Verizon Communications, speaking at the UBS "Q-Series: FTTP/VoIP Workshop" in New York City. The FTTP architecture is based on the international FSAN standard. The process has now entered a lab testing phase to verify critical requirements and Verizon Communications has entered into private negotiations with all three of suppliers on the short list. Each of the RBOCs will establish separate contracts with suppliers although the architecture would remain common. Verizon's vendor(s) selection could occur by the end of this month.
The three RBOCs are issuing a new RFP covering the RF video component of the architecture, which Evans said was not well addressed in the first round of responses. Verizon is also issuing another RFP covering passive elements of the network, such as the fiber, splitters, hubs, etc.
Evans said the FCC's Triennial Review Order still needs further clarification on a number of broadband issues but that Verizon is currently proceeding with the technical aspects of a major FTTP rollout. Evans confirmed that Verizon plans to pass one million homes with FTTP by the end of 2004, meaning that fiber would be trenched or carried via aerial deployments, and central office OLTs would be deployed to reach this potential customer base. The service would be available within 5 days for customers choosing the service. Verizon has the largest percentage of aerial plant (>55%) compared to other RBOCs. In an overbuilt situation, Evan believes aerial deployments will be about 30% cheaper than buried cables. Verizon's first rollouts of fiber in the outside plant could happen early next year. By the end of Q1, Verizon expects to equip its first central office and shortly thereafter rollout service. Subsequent rollouts would happen by the end of Q2. Evans does not expect Verizon to raise its overall CAPEX budget due to FTTP deployment. Instead, funds would be shifted to FTTP from other programs. Because of the architecture's passive optics, Verizon expects ongoing savings in plant maintenance. Verizon is also "very motivated" to move to packet voice technologies in parallel with FTTP deployments so as not to further invest in legacy switch interfaces. Once the voice is in a packet environment, Verizon's preference would be not to convert it back to TDM.
As to why BPON was chosen rather than GPON, Evans said the FSAN standard proved to be quite mature and stable, while GPON might be 2 years away.
Regarding video, Evans said Verizon's RF video service would be equal to or better than anything available by cable. Verizon is also aware of IPTV, and Evans said the company would certainly be able to deliver such services over the new fiber network.
BellSouth's extensive fiber-to-the-curb (FTTC) deployments which have been underway for years, "fit well with the newly chosen FTTP architecture," said Peter Hill, Vice President of Technology for BellSouth. Hill said BellSouth was disappointed in the FCC Triennial Review Order because it seemed to prescribe particular broadband network architectures. Hill believes different neighborhoods will have different outside plant requirements and FTTP will be one more tool in BellSouth's kit. As such, he argues the broadband deregulation should apply equally. About a quarter of the homes in BellSouth territory are MTUs and will be served by an FTTC/FTTP element. About 315,000 new homes will be built in BellSouth territory this year and about a third of them will be equipped with direct fiber connections. With the right regulatory signals, Hill said these FTTP deployments would be expanded. Hill said the initial cost of fiber is higher, but that ongoing maintenance costs are lower. BellSouth also considers the potential new revenue to be greater for fiber. BellSouth's next steps regarding FTTP will be to do a lab trial and a field trial. Hill does not expect BellSouth to raise its overall CAPEX budget due to FTTP next year.
Alcatel has been in the broadband business since the early days and strives to leverage the installed base as much as possible, said Scott Nelson, Alcatel's CTO for North America. Alcatel's existing 7300 DSLAM architecture can already integrate with PON and its DLC platform will add these capabilities soon. Nelson noted that the BPON standard was completed in 1998 and that GPON should be ratified in the next few months. Alcatel said all its products will be able to support both BPON and GPON. Alcatel will support several video possibilities, including RF analog overlay, RF digital overlay and IPTV. Nelson said that faster download speeds would provide new possibilities for PVR-type services. In comparison to the 1996 Joint Procurement decision, Nelson said this FTTP decision is being watched around the world and that many other carriers would follow this lead as greater volumes would lead to lower prices. Much like the early days of DSL, Alcatel believes FTTP will be led from North America.
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