10 Gigabit Plain Old Telephone Service
Bell Labs has sent unprecedented amounts of data down a telephone wire. The research arm of Alcatel-Lucent has achieved one-gigabit streams in both directions over 70m of wire, and 10-gigabit one-way over 30m using a bonded pair of telephone wires.
Keith RussellThe demonstrations show how gigabit-speed broadband could use telephone wire to bridge the gap between a local optical fibre point and a home. The optical fibre point may be located at the curbside, on a wall or in an apartment's basement.
Service providers want to deliver gigabit services to compete with cable operators and developments like Google Fiber, the Web giant's one-gigabit broadband initiative in the US. Such technology will help the operators deploy gigabit broadband, saving them time and expense.
"This kind of a technology is really going to be an enabler of fibre-to-the-home," says Keith Russell, senior marketing manager, fixed networks business at Alcatel-Lucent. "Service providers will have another tool, addressing those parts of the network where it is hard to drive fibre right to the home, whether it is a multi-dwelling unit or where they can't trench fibre those last few meters."
Bell Labs delivers gigabits of data down the telephone wire by using more spectrum. VDSL2 uses 17MHz of spectrum while the first implementation of the emerging G.fast standard extends the frequency band to 106MHz. Alcatel-Lucent has gone beyond G.fast and uses even more spectrum: 350MHz for symmetrical 1 Gigabit, and up to 500MHz to demonstrate 10 Gigabit. Bell Labs calls its technology XG-FAST.
BT's chief executive, Gavin Patterson, has already described G.fast as a very exciting technology. "It allows us to get speeds of up to one-gigabit, and it builds on VDSL," said Patterson during BT's most recent quarterly results call. "It takes the fibre closer to the premise, so effectively you get a glass transmission closer to the premise but not always all the way in."
XG-FAST will take longer and will likely be commercially available only from 2018, says Teresa Mastrangelo, principal analyst at Broadbandtrends: "That timeline may still provide a quicker means to deploying gigabit services than having to deploy a full-blown fibre-to-the-home network."
Source: Alcatel-Lucent Bell Labs
Using such a broad spectrum of the telephone wire, designed a century ago to carry voice signals several kilohertz wide, creates two challenges.
One is that signal attenuation grows with frequency. Hence the wider the spectrum, the shorter the copper loop length over which data can travel. VDSL2 has a loop-length of some 1,500 meters while XG-FAST achieves tens of meters.
The second issue is crosstalk, where the signal on a copper pair leaks into a neighbouring pair, generating electrical noise. The leakage can be so noisy at the higher frequencies that it can exceed the desired signal.
For the Bell Labs demonstration, crosstalk was only an issue in the 10-gigabit example that uses two wire pairs. However, for VDSL2 and for the emerging G.fast standard, crosstalk is a significant problem. Systems vendors have developed advanced digital signal processing techniques, known as vectoring, to reject such noise.
Russell says that the G.fast standard's first phase - based on 106MHz of spectrum - will be ratified by year end. G.fast's second phase proposes doubling the spectrum to 212MHz. Alcatel-Lucent demonstrations using XG-FAST shows that digital subscriber line technology need not stop there.
"A lot of work is needed to take it [XG-FAST] into production," says Russell. First, there are engineering challenges, the broad spectrum used makes the analogue front-end chip design significantly more complex and expensive. Engineering effort will be needed before the cost of such a solution will match that of VDSL.
XG-FAST would also need to be considered along with other proposals and the chosen outcome standardised before operators will embrace the technology in their networks. Meanwhile, operators will start testing G.fast from next year with products appearing mid-2015.
Another issue is the need for extensive copper characterisation in order to understand the state of the copper and whether it can even support this type of technology, says Mastrangelo.
"It will be very interesting to see what happens with G.fast given the operator interest in gigabit services," says Russell. "[G.fast] is a very strong option for operators wanting to offer such services quickly."
BT estimates that the technology is two years away before it will play a role in the network.
* The article was further edited and added to on July 16th.
FSAN adds WDM for next-generation PON standard
The Full Service Access Network (FSAN) group has chosen wavelength division multiplexing (WDM) to complement PON's traditional time-sharing scheme for the NG-PON2 standard.
"The technology choice allows us to have a single platform supporting both business and residential services"
Vincent O'Byrne, Verizon
The TWDM-PON scheme for NG-PON2 will enable operators to run several services over one network: residential broadband access, business services and mobile back-hauling. In addition, NG-PON2 will support dedicated point-to-point links – via a WDM overlay - to meet more demanding service requirements.
FSAN will work through the International Telecommunication Union (ITU) to turn NG-PON2 into a standard. Standards-compliant NG-PON2 equipment is expected to become available by 2014 and be deployed by operators from 2015. But much work remains to flush out the many details and ensure that the standard meets the operators’ varied requirements
Significance
The choice of TWDM-PON represents a pragmatic approach by FSAN. TWDM-PON has been chosen to avoid having to make changes to the operators' outside plant. Instead, changes will be confined to the PON's end equipment: the central office's optical line terminal (OLT) and the home or building's optical networking unit (ONU).
Operators yet to adopt PON technology may use NG-PON2's extended reach to consolidate their network by reducing the number of central offices they manage. Other operators already having deployed PON may use NG-PON2 to boost broadband capacity while consolidating business and residential services onto the one network.
US operator Verizon has deployed GPON and says the adoption of NG-PON2 will enable it to avoid the intermediate upgrade stage of XGPON (10Gbps GPON).
"The [NG-PON2] technology choice allows us to have a single platform supporting both business and residential services," says Vincent O'Byrne, director of technology, wireline access at Verizon. "With the TWDM wavelengths, we can split them: We could have a 10G/10G service or ten individual 1G/1G services and, in time, have also residential customers."
The technology choice for NG-PON2 is also good news for system vendors such as Huawei and Alcatel-Lucent that have already done detailed work on TWDM-PON systems.
Specification
NG-PON2's basic configuration will use four wavelengths, resulting in a 40Gbps PON. Support for eight (80G) and 16 wavelengths (160G) are also being considered.
Each wavelength will support 10Gbps downstream (from the central office to the end users) and 2.5Gbps upstream (XGPON) or 10Gbps symmetrical services for business users.
"The idea is to reuse as much as possible the XGPON protocol in TWDM-PON, and carry that protocol on multiple wavelengths," says Derek Nesset, co-chair of FSAN's NGPON task group.
The PON's OLT will support the 4, 8 or 16 wavelengths using lasers and photo-detectors as well as optical multiplexing, while the ONU will require a tunable laser and a tunable filter, to set the ONU to the PON's particular wavelengths.
Other NG-PON2 specifications include the support of at least 1Gbps services per ONU and a target reach of 40km. NG-PON2 will also support 60-100km links but that will require technologies such as optical amplification.
"The [NG-PON2] ONUs should be something like the cost of a VDSL or a GPON modem, so there is a challenge there for the [tunable] laser manufacturers"
Derek Nesset, co-chair of FSAN's NGPON task group
What next?
"The big challenge and the first challenge is the wavelength plan [for NG-PON2]," says O'Byrne.
One proposal is for TWDM-PON's wavelengths to replace XGPON's. Alternatively, new unallocated spectrum could be assigned to ensure co-existence with existing GPON, RF video and XGPON. However, such a scheme will leave little spectrum available for NG-PON2. Some element of spectral flexibility will be required to accommodate the various co-existence scenarios in operator networks. That said, Verizon expects that FSAN will look for fresh wavelengths for NG-PON2.
"FSAN is a sum of operators opinions and requirements, and it is getting hard," says O'Byrne. "Our preference would be to reuse XGPON wavelengths but, at the last meeting, some operators want to use XGPON in the coming years and aren't too favourable to recharacterising that band."
Another factor regarding spectrum is how widely the wavelengths will be spaced; 50GHz, 100GHz or the most relaxed 200GHz spacing are all being considered. The tradeoff here is hardware design complexity and cost versus spectral efficiency.
There is still work to be done to define the 10Gbps symmetrical rate. "Some folks are also looking for slightly different rates and these are also under discussion," says O'Byrne.
Another challenge is that TWDM-PON will also require the development of tunable optical components. "The ONUs should be something like the cost of a VDSL or a GPON modem, so there is a challenge there for the [tunable] laser manufacturers," says Nesset.
Tunable laser technology is widely used in optical transport, and high access volumes will help the economics, but this is not the case for tunable filters, he says.
The size and power consumption of PON silicon pose further challenges. NG-PON2 will have at least four times the capacity, yet operators will want the OLT to be the same size as for GPON.
Meanwhile, FSAN has several documents in preparation to help progress ITU activities relating to NG-PON2's standardisation.
FSAN has an established record of working effectively through the ITU to define PON standards, starting with Broadband PON (BPON) and Gigabit PON (GPON) to XGPON that operators are now planning to deploy.
FSAN members have already submitted a NG-PON2 requirements document to the ITU. "This sets the framework: what is it this system needs to do?" says Nesset. "This includes what client services it needs to support - Gigabit Ethernet and 10 Gigabit Ethernet, mobile backhaul latency requirements - high level things that the specification will then meet."
In June 2012 a detailed requirements document was submitted as was a preliminary specification for the physical layer. These will be followed by documents covering the NG-PON2 protocol and how the management of the PON end points will be implemented.
If rapid progress continues to be made, the standard could be ratified as early as 2013, says O'Byrne.
ZTE takes PON optical line terminal lead
ZTE shipped 1.8 million passive optical network (PON) optical line terminals (OLTs) in 2011 to become the leading supplier with 41 percent of the global market, according to Ovum.
"ZTE is co-operating with some Tier 1 operators in Europe and the US for 10GEPON and XGPON1 testing"
Song Shi Jie, ZTE
The market research firm also ranks the Chinese equipment maker as the second largest supplier of PON optical network terminals (ONT), with 28 per cent global market share in 2011.
China now accounts for over half the total fibre-to-the-x (FTTx) deployments worldwide. ZTE says 1.05 million of its OLTs were deploy in China, with 70 percent for the EPON standard and the rest GPON. Overall EPON accounts for 85% of deployments in China. However GPON deployments are growing and ZTE expects the technology to gain market share in China.
There are some 300 million broadband users in China, made up of DSL, fibre-to-the-building (FTTB) and -curb (FTTC), says Song Shi Jie, director of fixed network product line at ZTE.
Of the three main operators, China Telecom is the largest. It is deploying FTTB and is moving to fibre-to-the-home (FTTH) deployments using GPON. China Unicom has a similar strategy. China Mobile is focussed on FTTB and LAN technology; because it is a mobile operator and has no copper line assets it uses LAN cabling for networking within the building.
The split ratio - the number of PON ONTs connected to each OLT - varies depending on the deployment. "In the fibre-to-the-building scenario, the typical ratio is 1:8 or 1:16; for fibre-to-the-home the typical ratio is 1:64," says Song.
ZTE has also deployed 200,000 10 Gigabit EPON (10GEPON) lines in China but none elsewhere, either 10GEPON or XGPON1 (10 Gigabit GPON). "ZTE is co-operating with some Tier 1 operators in Europe and the US for 10GEPON and XGPON1 testing," says Song.
Song attributes ZTE's success to such factors as reduced power consumption of its PON systems and its strong R&D in access.
The vendor says its PON platforms consume a quarter less power than the industry average. Its systems use such techniques as shutting down those OLT ports that are not connected to ONTs. It also employs port idle and sleep modes to save power when there is no traffic. Meanwhile, ZTE has 3,000 engineers engaged in fixed access product R&D.
As for the next-generation NGPON2 being development by industry body FSAN, Song says there are a variety of technologies being proposed but that the picture is still unclear.
ZTE is focussing on three main next-generation PON technologies: wavelength division multiplexing PON (WDM-PON), hybrid time division multiplexing (TDM)/ WDM-PON (or TWDM-PON) and orthogonal frequency division multiplexing (OFDM) PON. "We think OFDM PON can provide high security, high bandwidth and easy network maintenance," says Song.
ZTE says that the NGPON2 standard will be mature in 2015 but that commercial deployments will only start in 2018.
FSAN close to choosing the next generation of PON
Briefing: Next-gen PON
Part 1: NG-PON2
The next-generation passive optical network (PON) will mark a departure from existing PON technologies. Some operators want systems based on the emerging standard for deployment by 2015.

“One of the goals in FSAN is to converge on one solution that can serve all the markets"
Derek Nesset, co-chair of FSAN's NGPON task group
The Full Service Access Network (FSAN) industry group is close to finalising the next optical access technology that will follow on from 10 Gigabit GPON.
FSAN - the pre-standards forum consisting of telecommunications service providers, testing labs and equipment manufacturers - crafted what became the International Telecommunication Union's (ITU) standards for GPON (Gigabit PON) and 10 Gigabit GPON (XGPON1). In the past year FSAN has been working on NG-PON2, the PON technology that comes next.
“One of the goals in FSAN is to converge on one solution that can serve all the markets - residential users, enterprise and mobile backhaul," says Derek Nesset, co-chair of FSAN's NGPON task group.
Some mobile operators are talking about backhaul demands that will require multiple 10 Gigabit-per-second (Gbps) links to carry the common public radio interface (CPRI), for example. The key design goal, however, is that NG-PON2 retains the capability to serve residential users cost-effectively, stresses Nesset.
FSAN says it has a good description of each of the candidate technologies: what each system looks like and its associated power consumption. "We are trying to narrow down the solutions and the ideal is to get down to one,” says Nesset.
The power consumption of the proposed access scheme is of key interest for many operators, he says. Another consideration is the risk associated with moving to a novel architecture rather than adopting an approach that builds on existing PON schemes.
Operators such as NTT of Japan and Verizon in the USA have a huge installed base of PON and want to avoid having to amend their infrastructure for any next-generation PON scheme unable to re-use power splitters. Other operators such as former European incumbents are in the early phases of their rollout of PON and have Greenfield sites that could deploy other passive infrastructure technologies such as arrayed waveguide gratings (AWG).
"The ideal is we select a system that operates with both types of infrastructure," says Nesset. "Certain flavours of WDM-PON (wavelength division multiplexing PON) don't need the wavelength splitting device at the splitter node; some form of wavelength-tuning can be installed at the customer premises." That said, the power loss of existing optical splitters is higher than AWGs which impacts PON reach – one of several trade-offs that need to be considered.
Once FSAN has concluded its studies, member companies will generate 'contributions' for the ITU, intended for standardisation. The ITU has started work on defining high-level requirements for NG-PON2 through contributions from FSAN operators. Once the NG-PON2 technology is chosen, more contributions that describe the physical layer, the media access controller and the customer premise equipment's management requirements will follow.
Nesset says the target is to get such documents into the ITU by September 2012 but achieving wide consensus is the priority rather than meeting this deadline. "Once we select something in FSAN, we expect to see the industry ramp up its contributions based on that selected technology to the ITU," says Nesset. FSAN will select the NG-PON2 technology before September.
NG-PON2 technologies
Candidate technologies include an extension to the existing GPON and XGPON1 based on time-division multiplexing (TDM). Already vendors such as Huawei have demonstrated prototype 40 Gigabit capacity PON systems that also support hybrid TDM and WDM-PON (TWDM-PON). Other schemes include WDM-PON, ultra-dense WDM-PON and orthogonal frequency division multiplexing (OFDM).
Nesset says there are several OFDM variants being proposed. He views OFDM as 'DSL in the optical domain’: sub-carriers finely spaced in the frequency domain, each carrying low-bit-rate signals.
One advantage of OFDM technology, says Nesset, includes taking a narrowband component to achieve a broadband signal: a narrowband 10Gbps transmitter and receiver can achieve 40Gbps using sub-carriers, each carrying quadrature amplitude modulation (QAM). "All the clever work is done in CMOS - the digital signal processing and the analogue-to-digital conversion," he says. The DSP executes the fast Fourier transform (FFT) and the inverse FFT.
"We are trying to narrow down the solutions and the ideal is to get down to one"
Another technology candidate is WDM-PON including an ultra-dense variant that promises a reach of up to 100km and 1,000 wavelengths. Such a technology uses a coherent receiver to tune to the finely spaced wavelengths.
In addition to being compatible with existing infrastructure, another FSAN consideration is compatibility with existing PON standards. This is to avoid having to do a wholesale upgrade of users. For example, with XGPON1, the optical line terminal (OLT) using an additional pair of wavelengths - a wavelength overlay - sits alongside the existing GPON OLT. ”The same principle is desirable for NG-PON2,” says Nesset.
However, an issue is that spectrum is being gobbled up with each generation of PON. PON systems have been designed to be low cost and the transmit lasers used are not wavelength-locked and drift with ambient temperature. As such they consume spectrum similar to coarse WDM wavelength bands. Some operators such as Verizon and NTT also have a large installed base of analogue video overlay at 1550nm.
”So in the 1500 band you've got 1490nm for GPON, 1550nm for RF (radio frequency) video, and 1577nm for XGPON; there are only a few small gaps,” says Nesset. A technology that can exploit such gaps is both desirable and a challenge. “This is where ultra-dense WDM-PON could come into play,” he says. This technology could fit tens of channels in the small remaining spectrum gaps.
The technological challenges implementing advanced WDM-PON systems that will likely require photonic integration is also a concern for the operators. "The message from the vendors is that ’when you tell us what to do, we have got the technology to do it’,” says Nesset. ”But they need the see the volume applications to justify the investment.” However, operators need to weigh up the technological risks in developing these new technologies and the potential for not realising the expected cost reductions.
Timetable
Nesset points out that each generation of PON has built on previous generations: GPON built on BPON and XGPON on GPON. But NG-PON2 will inevitably be based on new approaches. These include TWDM-PON which is an evolution of XG-PON into the wavelength domain, virtual point-to-point approaches such as WDM-PON that may also use an AWG, and the use of digital signal processing with OFDM or coherent ultra dense WDM-PON. ”It is quite a challenge to weigh up such diverse technological approaches,” says Nesset.
If all goes smoothly it will take two ITU plenary meetings, held every nine months, to finalise the bulk of the NG-PON2 standard. That could mean mid-2013 at the earliest.
FSAN's timetable is based on operators wanting systems deployable in 2015. That requires systems to be ready for testing in 2014.
“[Once deployed] we want NG-PON2 to last quite a while and be scalable and flexible enough to meet future applications and markets as they emerge,” says Nesset.
Photonic integration specialist OneChip tackles PON
Briefing: PON
Part 1: Monolithic integrated transceivers
OneChip Photonics is moving to volume production of PON transceivers based on its photonic integrated circuit (PIC) design. The company believes that its transceivers can achieve a 20% price advantage.

"We will be able to sell [our integrated PON transceivers] at a 20% price differential when we reach high volumes"
Andy Weirich, OneChip Photonics
OneChip Photonics has already provided transceiver engineering samples to prospective customers and will start the qualification process with some customers this month. It expects to start delivering limited quantities of its optical transceivers in the next quarter.
The company's primary products are Ethernet PON (EPON) and Gigabit PON (GPON) transceivers. But it is also considering selling a bi-directional optical sub-assembly (BOSA), a component of its transceivers, to those system providers that want to attach the BOSA directly to the printed circuit board (PCB) in their optical network units (ONUs).
"The BOSA is the sub-assembly that contains all the optics, usually the TIA [trans-impedance amplifier] and sometimes the laser driver," says Andy Weirich, OneChip Photonics' vice president of product line management.
The company will roll out its Ethernet PON (EPON) ONU transceivers in the second quarter of 2012, followed by GPON ONU transceivers in the third quarter.
PON Technologies
EPON operates at 1.25 Gigabit-per-second (Gbps) upstream and downstream. OneChip had planned to develop a 2.5Gbps EPON variant which, says OneChip, has been standardised by the China Communications Standards Association (CCSA). But the company has abandoned the design since volumes have been extremely small and there have been no deployments in China.
GPON is a 2.5Gbps downstream/ 1.25Gbps upstream technology. The main differences between GPON and EPON transceiver optical components are the requirement of the ONU's receiver optics and circuitry, and the laser type, says Weirich. GPON's Class B+ specification, used for nearly all the GPON deployments, calls for a 28-29dB sensitivity. This is a more demanding specification requirement to meet than EPON's. GPON also calls for a Distributed Feedback (DFB) laser, whereas an EPON ONU may use either a Fabry-Perot laser or a DFB laser.
OneChip uses the same DFB for GPON and EPON ONUs. Where the PIC designs differ is the receiver assembly where GPON requires amplification. This, says Weirich, is achieved using either an avalanche photodiode (APD) or a semiconductor optical amplifier (SOA).
OneChip will start with an APD but will progress to an SOA. Once it integrates an SOA as part of the PIC, a simpler, cheaper photo-detector can be used.
Weirich admits that it has taken OneChip longer than it expected to develop its monolithically-integrated design.
Part of the challenge has been the issue of packaging the PIC. "Because of our integrated approach and non-alignment-requiring assembly, we have had to solve a few more technology problems," he says. "Our suppliers have had a challenge with some of those issues, and it has taken a couple of iterations to solve."
OneChip says that the good news is that the price erosion of EPON transceivers has slowed down in the last two years. So while Weirich admits the market is more competitive now, what is promising is that volumes have continued to grow.
"There is no sign of saturation happening either in the EPON or GPON markets," he says. And OneChip believes it can compete on price. "What we are saying is that we will be able to sell [our monolithically integrated PON transceivers) at a 20% price differential when we reach high volumes." That is because the monolithic design is simpler and the optical components that make up the design are cheaper, says the company.
10G EPON and XGPON
OneChip believes the end of 2012 will be when 10G EPON volumes start to ramp. "10G EPON is a significantly larger market than 10G GPON [XGPON]," says Weirich, pointing out that some of the largest operators such as China Telecom have backed 10G EPON.
With 10G EPON there are two flavours: the asymmetric (10Gbps downstream and 1.25Gbps upstream) and the symmetric (10Gbps bidirectional) versions.
For an asymmetric 10Gbps ONU transceiver, the laser does not need to change but the optics and electronics at the receiver do, because of the 10Gbps receive signal and because operators want 28-29dB optical link budgets so that 10G EPON can run on the same fibre plant as EPON. "This is an order of magnitude more difficult from a sensitivity perspective than for EPON," says Weirich.
There is demand for the 10G symmetric EPON but it is much lower than the asymmetric version primarily due to cost. "The ONU transceiver with its 10 Gbps laser and photo-detector is quite a bit more costly," says Weirich, complicating the PON's business case.
OneChip says it has a 10G EPON in its product roadmap, but it has not yet made any announcements or made any demonstrations to customers.
Challenges
OneChip is not aware of any other company developing a monolithic integrated design for PON transceivers, in part due to the challenge. It has to be made cheaply enough to compete with the traditional TO-can design. The key is to develop low-cost integration techniques and processes right at the start of the PIC design, he says.
The company says that it is also exploring using its PIC technology to address data centre connectivity.
OneChip Photonics at a glance
OneChip employs some 80 staff and is headquartered in Ottawa, Canada, where it has a 4,000 sq. ft. cleanroom. The start-up also has a regional office in Shenzhen, China which includes a test lab to serve regional customers.
The company is primarily a transceiver supplier and its main target customers are the tier-one system vendors that supply OLT and ONU equipment. "When you think of the big three players in China, Huawei, ZTE and Fiberhome would be among those we are targeting," says Steve Bauer, vice president of marketing and communications, as well as players such as Alcatel-Lucent and Motorola. As mentioned, the company is also considering selling its BOSA design to ONU makers.
In May 2011 the company received $18M in its latest round of funding. "We are transitioning from product development to becoming operationally ready to manufacture in volume," says Bauer.
Fabrinet and Sanmina-SCI are two contract manufacturers that the company is using for transceiver testing and assembly while it has partnerships with several other fabs for supply of wafers, wafer fabrication and silicon optical benches.
10 Gigabit GPON gets broadband access support
Part 1: XG-PON1 goes commercial
Alcatel-Lucent is making available what it claims is the first broadband access platforms that support XG-PON1, the 10 Gigabit GPON standard. The company has developed an XG-PON1 line card for use in its latest ISAM-FX as well as its existing ISAM-FD access platforms. The ISAM platforms support copper and fibre-based broadband access.

“First [XG-PON1] deployments will likely be in Asia Pacific but we are seeing strong interest from other regions"
Stefaan Vanhastel, Alcatel-Lucent
Why is this significant?
System vendors and operators have been trialling 10 Gigabit GPON technology. Now Alcatel-Lucent has signalled that the technology is ready for commercial deployment. The vendor says operator deployments will start later this year, a claim backed by Infonetics Research. However, the market research firm forecasts 10 Gigabit GPON global deployments will only reach two million ports by 2014.
What has been done?
XG-PON1 is the asymmetrical version of the 10 Gigabit GPON standard delivering 10 Gigabit-per-second (Gbps) data rates downstream (to the user) and 2.5Gbps upstream. This compares to GPON, which delivers 2.5Gbps downstream and 1.25Gbps upstream.
The Alcatel-Lucent XG-PON1 line card has four 10 Gigabit GPON ports, and is available on the existing ISAM-FD products as well as the latest ISAM-FX high-capacity shelves.
There are three ISAM-FX shelves that accommodate four, eight and 16 line cards. The ISAM-FX shelves have a dual-100Gbps backplane capacity, compared to the ISAM-FD which has a 2x10Gbps capacity. The ISAM-FX shelves house up to two controllers, and the role of the backplane is to connect each line card to each controller. The 100Gbps is the capacity linking each line card to each of the two controllers. Since the XG-PON1 line card has four 10Gbps ports, the backplane will clearly support future denser line cards.
The controller acts as a central processing unit taking traffic from the line cards and packaging it for the network uplink. Each controller has a 480Gbps switching matrix, four 10 Gigabit Ethernet uplinks and service intelligence to handle the traffic flows. “You can have two controllers per shelf and then they work in a load sharing mode,” says Stefaan Vanhastel, marketing director wireline access at Alcatel-Lucent. “This gives you a total of eight uplinks and you can add more if needed.”
The PON architecture
The XG-PON1 standard allows operators a straightforward way to upgrade existing GPON networks. “The operator can put the two technologies on the same optical network, with some subscribers on GPON and others on 10 Gig GPON,” says Vanhastel.
Source: Alcatel-Lucent
Moving to XG-PON1 not only provides greater bandwidth but also supports more subscribers on the one fibre. According to Alcatel-Lucent the maximum number of PON end terminals or optical network units (ONUs) that GPON supports is 128, dubbed a split ratio of 1:128. In contrast, 1:128 is the starting split ratio for XG-PON1 while the maximum is 1:512.
Source: Alcatel-Lucent
What next?
Vanhastel admits that existing GPON provides more than enough bandwidth to subscribers. To ensure that a GPON subscriber gets sufficient bandwidth, the average split ratio operators use is 1:18. “With the higher-capacity XG-PON1, the average split ratio could go up significantly,” says Vanhastel.
Alcatel-Lucent says initial deployments of XG-PON1 will start in the second half of this year with more widespread deployments occurring in 2012. “The first deployments will likely be in Asia Pacific but we are seeing strong interest from other regions,” says Vanhastel.
Initial XG-PON1 deployments will likely be for backhauling traffic from fibre-to-the-building (FTTB) deployments. Here one fibre has a split ratio of 1:16 or 1:32 but each FTTB node supports 24 subscribers typically.
Meanwhile, the company announced in October 2010 trials with operators Verizon and Portugal Telecom involving the symmetrical (downstream and upstream) 10 Gigabit GPON variant known as XG-PON2. XG-PON2 has yet to become a standard.
Next-generation access will redefine the telcos
Gazettabyte caught up with him to understand the goals of his new company, Diffraction Analysis, and why he believes next-generation access is critical for service providers.

"As soon as you, the operator, make that investment decision, it has fundamental implications as to who you are as a company"
Benoît Felten, CEO, Diffraction Analysis
Gazettabyte: There are several established market research companies addressing access. What is Diffraction Analysis offering that is unique?
BF: There are two reasons [for setting up Diffraction Analysis]. The first came to me when I was doing consultancy work for a [Yankee Group] customer. He said: “You are the only guy I know working for an established company that only covers next-generation access.” All the other guys cover broadband, with next-generation access being a sub-topic.
At that moment it coalesced something that I had been thinking about for some time: the migration from legacy to next-generation access networks is probably the single most challenging issue that established players will face, and the single biggest opportunity for challengers to grab. If you drown that [topic] among legacy [broadband] issues you might be missing the point.
The second reason, much more pragmatic, is that there are many small companies that simply cannot afford the cost of generic telecom research from established market research companies. To access research affordably, for me, that is a market opportunity.
When you say next-generation access, what do you mean?
BF: It refers to the replacement of the legacy copper network in all its incarnations – most cell towers are connected with copper today - with a fibre-rich network. Cable networks, wireline copper networks, mobile networks are all going to be fibre-rich.
What are the key issues facing operators regarding next-generation access?
BF: The first for the operators is: How do we finance a network deployment and why do we do it? The established players all agree that they have to do it, sooner or later and probably sooner, and the core question is: How do we do it?
The problem is that it places access at the core of the telco business model. Ever since the internet started being successful, most legacy players – and that includes cable players - have seen themselves as service providers rather than access providers. Effectively, they are faced with a major investment which if they don’t do opens up opportunities for others to displace them. We are seeing that happen is small markets like Hong Kong, where a competitive player is on the path to eliminate the access network of the incumbent.
The threat is real, the customer need is real. The problem is operators don’t know how to use the network for their own revenues. They are faced with the choice of becoming a long-term utility – investing in the network for 20 years and reaping revenues for another 50 years – but that is unpalatable for them, or they find another way to use the network for revenues, keeping in mind that most new services do not come from telcos these days but from over-the-top players.
What we plan to examine are the alternative paths: What will be the operators’ role and where will the operators’ revenues come from once they have made this investment?
As soon as you, the operator, make that investment decision, it has fundamental implications as to who you are as a company. It is not just an upgrade.
I was at a conference last year and a guy from NTT said: “We didn’t realise that when we made that [fibre access network] investment decision, we were rebuilding the company from scratch.” He said: “Now, 10-years-on, at a strategy level, we have understood that – we are in a different business now.”
What is Diffraction Analysis going to do?
BF: We are a market research and consultancy firm. It is important to do both: consultancy keeps you grounded in what is happening in the market. Research is your ability to step back and articulate the global view.
I have already signed a couple of companies for whom I do advisory services. We also have classic consultancy projects. We are working for a vendor right now who is asking us to look at opportunities for them to enter the access market. They have disruptive technology and are looking to partner with companies and take a stake in the access market. We are in the middle of this and our advice might be: don’t do it.
One of the things we want to do is build modelling tools that allow legacy service providers to map the network deployment in time and not just based on a single investment decision. Right now the question is do I deploy fibre or not? But the reality is even if the answer is yes, the deployment will take 15 years. If it takes 15 years, what happens to all the people that don’t have fibre as I – the operator - gradually connect them?
We are trying to build a model that will optimise the cost and the service offered to end customers with a variety of technologies. This is where fibre-to-the-curb and various flavours like phantom mode DSL come into play.
We are aiming to do this by geographical area, to model where you should deploy fibre first and what you should do in non-fibre areas, and for how long, looking at the lifetime of these various technology options.*
What are the key lessons you learnt as a Yankee Group analyst?
BF: One of the things that strike me is that in this economic shift we have experienced in the last 30 years, something has been lost and that is long-term vision. That leads many organisations to make hugely inefficient decisions. These decisions may be rational but the long term is no longer part of the equation. In the telecom business it is striking how far this can lead people into making wrong decisions.
The second thing that I learnt interacting with many industry players is that the single toughest challenge each organisation has is fighting against their own culture. There is a culture of business-as-usual which is at odds with the challenges of an ever shifting technology market. Even companies in the internet space that everyone views as agile and willing to reassess themselves, you find these cultural issues.
I’m not saying anything original but interacting with these companies all around the world for the three years at Yankee highlighted this for me.
Most broadband users are still DSL-based. How will fibre-based access become massively deployed?
BF: Essentially there are three drivers for telcos to deploy. In order of importance they are: competition, network reboot and meeting customer demand.
Competition is a clear driver. When as an organisation your network access business is threatened, every consideration about how fast you deploy for payback goes out of the window - you have to deploy. And then you learn the hard way since by responding and not anticipating, you make mistakes.
The second driver [network reboot] is not mature today. Smart CTOs around the world are seeing fibre deployments as an opportunity to rethink way more than just their access infrastructure. And WDM-PON [wavelength division multiplexing – passive optical network] technology in access plays a significant part in that thinking.
If they deploy now, they may make savings and achieve network concentration but it is not massive. If they wait they might be able to save more which is why this driver isn’t working right now.
The third driver is meeting customer needs. Now, in their public discourse, operators say this is first and foremost but the reality is that since they have not found ways to make money out of traffic, they don’t want more traffic. So meeting customer needs is not a priority except if you are in a competitive market and someone else is meeting customers’ needs in which case you have to do it.
Diffraction Analysis’s team comprises people with wireline experience but the company does plan to also cover mobile. “I do think that there is a great deal of sense in having a mobile arm too but I can’t build that myself – I don’t have the credibility or the knowledge,” says Felten, who is looking at partnerships or recruitment to add mobile to the operation.
*Diffraction Analysis has just published its research programme till June 2011.
Bringing WDM-PON to market

"We see just one way to bring down the cost, form-factor and energy consumption of the OLT’s multiple transceivers: high integration of transceiver arrays"
Klaus Grobe, ADVA Optical Networking
Considerable engineering effort will be needed to make next-generation optical access schemes using multiple wavelengths competitive with existing passive optical networks (PONs).
Such a multi-wavelength access scheme, known as a wavelength division multiplexing-passive optical network (WDM-PON), will need to embrace new architectures based on laser arrays and reflective optics, and use advanced photonic integration to meet the required size, power consumption and cost targets.
Current PON technology uses a single wavelength to deliver downstream traffic to end users. A separate wavelength is used for upstream data, with each user having an assigned time slot to transmit.
Gigabit PON (GPON) delivers 2.5 Gigabit-per-second (Gbps) to between 32 or 64 users, while the next development, XG-PON, will extend GPON’s downstream data rate to 10 Gbps. The alternative PON scheme, Ethernet PON (EPON), already has a 10 Gbps variant. Vendors are also extending PON’s reach from 20km to 80km or more using signal amplification.
But the industry view is that after 10 Gigabit PON, the next step will be to introduce multiple wavelengths to extend the capacity beyond what a time-sharing approach can support. Extending the access network's reach to 100km will also be straightforward using WDM transport technology.
The advent of WDM-PON is also an opportunity for new entrants, traditional WDM optical transport vendors, to enter the access market. ADVA Optical Networking is one firm that has been vocal about its plans to develop next-generation access systems.
“We are seriously investigating and developing a next-generation access system and it is very likely that it will be a flavour of WDM-PON,” says Klaus Grobe, senior principal engineer at ADVA Optical Networking. “It [next-generation access] must be based on WDM simply because of bandwidth requirements.”
The system vendor views WDM-PON as addressing three main applications: wireless backhaul, enterprise connectivity and residential broadband. But despite WDM-PON’s potential to reduce operating costs significantly, the challenge facing vendors is reducing the cost of WDM-PON hardware. Indeed it is the expense of WDM-PON systems that so far has assigned the technology to specialist applications only.
A non-reflective tunable laser-based WDM-PON ONU. Source: ADVA Optical NetworkingAccording to Grobe, cost reduction is needed at both ends of the WDM-PON: the client receiver equipment known as the optical networking unit (ONU) and the optical line terminal (OLT) housed within an operator’s central office.
ADVA Optical Networking plans to use low-cost tunable lasers rather than a broadband light source and reflective optics for the ONU transceivers. “For the OLT, we see just one way to bring down the cost, form-factor and energy consumption of the OLT’s multiple transceivers: high integration of transceiver arrays,” says Grobe.
This is a considerable photonic integration challenge: a 40- or 80-wavelength WDM-PON uses 40 or 80 transceiver bi-directional clients, equating to 80 and 160 wavelengths. If 80 SFPs optical modules were used at the OLT, the resulting cost, size and power consumption would be prohibitive, says Grobe.
ADVA Optical Networking is working with several firms, one being CIP Technologies, to develop integrated transceiver arrays. ADVA Optical Networking and CIP Technologies are part of the EU-funded project, C-3PO, that includes the development of integrated transceiver arrays for WDM-PON.
Splitters versus filters
One issue with WDM-PON is that there is no industry-accepted definition. ADVA Optical Networking views WDM-PON as an architecture based on optical filters rather than splitters. Two consequences result once that choice is made, says Grobe.
One is insertion loss. Choosing filters implies arrayed waveguide gratings (AWGs), says Grobe. “No other filter technology is seriously considered for WDM-PON if filters are used,” he says.
With an AWG, the insertion loss is independent of the number of wavelengths supported. This differs from using a splitter-based architecture where every 1x2 device introduces a 3dB loss - “closer to 3.5dB”, he says. Using a 1x64 splitter, the insertion loss is 14 or 15dB whereas for a 40-channel AWG the loss can be as low as 4dB. “I just saw specs of a first 96-channel AWG, even that one isn’t much higher [than 4dB],” says Grobe. Thus using filters rather than splitters, the insertion loss is much lower for a comparable number of client ONUs.
There is also a cost benefit associated with a low insertion loss. To limit the cost of next-generation PON, the transceiver design must be constrained to a 25dB power budget associated with existing PON transceivers. “This is necessary to keep these things cheap, possibly dirt cheap,” says Grobe.
The alternative, using XG-PON’s sophisticated 10 Gbps burst-mode transceiver with its associated 35dB power budget, achieving low cost is simply not possible, he says. To live with transceivers with a 25dB power budget, the insertion loss of the passive distribution network must be minimised, explaining why filters are favoured.
The other main benefit of using filters is security. With a filter-based PON, wavelength point-to-point connections result. “You are not doing broadcast,” says Grobe. “You immediately get rid of almost all security aspects.” This is an issue with PON where traffic is shared.
Low power
Achieving a low-power WDM-PON system is another key design consideration. “In next-gen access, it is absolutely vital,” says Grobe. “If the technology is deployed on a broad scale - that is millions of user lines – every single watt counts, otherwise you end up with differences in the approaches that go into the megawatts and even gigawatts.”
There is also a benchmarking issue, says Grobe: the WDM-PON OLT will be compared to XG-PON’s even if the two schemes differ. Since XG-PON uses time-division multiplexing, there will be only one transceiver at the OLT. But this is what a 40- or 80-channel WDM-PON OLT will be compared with, even if the comparison is apples to pears, says Grobe.
WDM-PON workings
There are two approaches to WDM-PON.
In a fully reflective architecture, the OLT array and the ONUs are seeded using multi-wavelength laser arrays; both ends use the lasers arrays in combination with reflective optics for optical transmission.
ADVA Optical Networking is interested in using a reflective approach at the OLT but for the ONU it will use tunable lasers due to technical advantages. For example, using the same wavelength for the incoming and modulated streams in a reflective approach, Rayleigh crosstalk is an issue when the ONUs are 100km from the OLT. In contrast, Rayleigh crosstalk at the OLT is avoided because the multi-wavelength laser array is located only a few metres from the reflective electro-absorption modulators (REAMs).
REAMs are used rather than semiconductor optical amplifiers (SOAs) to modulate data at the OLT because they support higher bandwidth 10 Gbps wavelengths. Indeed the C-3PO project is likely to use a monolithically integrated SOA-REAM for this task. “The reflective SOA is narrower in bandwidth but has inherent gain while the REAM has loss rather than gain – it is just a modulator,” says Grobe. “The combination of the two is the ideal: giving high modulation bandwidth and high transmit power.”
The integrated WDM-PON OLT. In practice the transmit array uses a reflective architecture based on SOA-REAMs and is fed with a multi-wavelength laser source. Source: ADVA Optical Networking
For the OLT, a multi-wavelength laser is fed via an AWG into an array of SOA-REAMs which modulate the wavelengths and return them through the AWG where they are multiplexed and transmitted to the ONUs via a demultiplexing AWG. An added benefit of this approach, says Grobe, is that the same multi-wavelength laser source can be use to feed several WDM-PON OLTs, further decreasing system cost.
For the upstream path, each ONU’s wavelength is separated by the OLT’s AWG and fed to the receiver array. In a WDM-PON system, the OLT transmit wavelengths and receive wavelengths (from the ONUs) operate in separate optical bands.
Grobe expects its resulting WDM-PON system to use 40 or 80 channels. And to best meet size, power and cost constraints, the OLT design will likely implemented as a photonic integrated circuit. “We are after a single PIC solution,” he says. “It is clear that with the OLT, integration is the only way to meet requirements.” A photonically-integrated OLT design is one of the products expected from the C-3PO project, using CIP Technologies' hybrid integration technology.
ADVA Optical Networking has already said that its WDM-PON OLT will be implemented using its FSP 3000 platform.
- To see some WDM-PON architecture slides, click here.
Reflecting light to save power
System vendors will be held increasingly responsible for the power consumption of their telecom and datacom platforms. That’s because for each watt the equipment generates, up to six watts is required for cooling. It is a burden that will only get heavier given the relentless growth in network traffic.
"Enterprises are looking for huge capacity at low cost and are increasingly concerned about the overall impact on power consumption"
David Smith, CIP Technologies
No surprise, then, that the European 7th Framework Programme has kicked-off a research project to tackle power consumption. The Colorless and Coolerless Components for Low-Power Optical Networks (C-3PO) project involves six partners that include component specialist CIP Technologies and system vendors ADVA Optical Networking.

CIP is the project’s sole opto-electronics provider while ADVA Optical Networking's role is as system integrator.
“It’s not the power consumption of the optics alone,” says David Smith, CTO of CIP Technologies. “The project is looking at component technology and architectural issues which can reduce overall power consumption.”
The data centre is an obvious culprit, requiring up to 5 megawatts. Power is consumed by IT and networking equipment within the data centre – not a C-3PO project focus – and by optical networking equipment that links the data centre to other sites. “Large enterprises have to transport huge amounts of capacity between data centres, and requirements are growing exponentially,” says Smith. “They [enterprises] are looking for huge capacity at low cost and are increasingly concerned about the overall impact on power consumption.”
One C-3PO goal is to explore how to scale traffic without impacting the data centre’s overall power consumption. Conventional dense wavelength division multiplexing (DWDM) equipment isn’t necessarily the most power-efficient given that DWDM tunable lasers requires their own cooling. “There is the power that goes into cooling the transponder, and to get the heat away you need to multiply again by the power needed for air conditioning,” says Smith.
Another idea gaining attention is operating data centres at higher ambient temperatures to reduce the air conditioning needed. This idea works with chips that have a wide operating temperature but the performance of optics - indium phosphide-based actives - degrade with temperature such that extra cooling is required. As such, power consumption could even be worse, says Smith
A more controversial optical transport idea is changing how line-side transport is done. Adding transceivers directly to IP core routers saves on the overall DWDM equipment deployed. This is not a new idea, says Smith, and an argument against this is it places tunable lasers and their cooling on an IP router which operates at a relatively high ambient temperature. The power reduction sought may not be achieved.
But by adopting a new transceiver design, using coolerless and colourless (reflective) components, operating at a wider temperature range without needing significant cooling is possible. “It is speculative but there is a good commercial argument that this could be effective,” says Smith.
C-3PO will also exploit material systems to extend devices’ temperature range - 75oC to 85oC - to eliminate as much cooling as possible. Such material systems expertise is the result of CIP’s involvement in other collaborative projects.
"If the [WDM-PON] technology is deployed on a broad scale - that is millions of user lines – every single watt counts"
Klaus Grobe, ADVA Optical Networking
Indeed a companion project, to be announced soon, will run alongside C-3PO based on what Smith describes as ‘revolutionary new material systems’. These systems will greatly improve the temperature performance of opto-electronics. “C-3PO is not dependent on this [project] but may benefit from it,” he says.
Colourless and coolerless
CIP’s role in the project will be to integrate modulators and arrays of lasers and detectors to make coolerless and colourless optical transmission technology. CIP has its own hybrid optical integration technology called HyBoard.
“Coolerless is something that will always be aspirational,” says Smith. C-3PO will develop technology to reduce and even eliminate cooling where possible to reduce overall power consumption. “Whether you can get all parts coolerless, that is something to be strived for,” he says.
Colourless implies wavelength independence. For light sources, one way to achieve colourless operation is by using tunable lasers, another is to use reflective optics.
CIP Technologies has been working on reflective optics as part of its work on wavelength division multiplexing, passive optical networks (WDM-PON). Given such reflective optics work for distances up to 100km for optical access, CIP has considered using the technology for metro and enterprise networking applications.
Smith expects the technology to work over 200-300km, at data rates from 10 to 28 Gigabit-per-second (Gbps) per channel. Four 28Gbps channels would enable low-cost 100Gbps DWDM interfaces.
Reflective transmission
CIP’s building-block components used for colourless transmission include a multi-wavelength laser, an arrayed waveguide grating (AWG), reflective modulators and receivers (see diagram).
Reflective DWDM architecture. Source: CIP Technologies
Smith describes the multi-wavelength laser as an integrated component, effectively an array of sources. This is more efficient for longer distances than using a broadband source that is sliced to create particular wavelengths. “Each line is very narrow, pure and controlled,” says Smith.
The laser source is passed through the AWG which feds individual wavelengths to the reflective modulators where they are modulated and passed back through the AWG. The benefit of using a reflective modulator rather than a pass-through one is a simpler system. If the light source is passed through the modulator, a second AWG is needed to combine all the sources, as well as a second fibre. Single-ended fibre is also simpler to package.
For data rates of 1 or 2Gbps, the reflective modulator used can be a reflective semiconductor optical amplifier (RSOA). At speeds of 10Gbps and above, the complementary SOA-REAM (reflective electro-absorption modulator) is used; the REAM offers a broader bandwidth while the SOA offers gain.
The benefit of a reflective scheme is that the laser source, made athermal and coolerless, consumes far less power than tunable lasers. “It has to be at least half the cost and we think that is achievable,” says Smith.
Using the example of the IP router, the colourless SFP transceiver – made up of a modulator and detector - would be placed on each line card. And the multi-wavelength laser source would be fed to each card’s module.
Another part of the project is looking at using arrays of REAMs for WDM-PON. Such an modulator array would be used at the central office optical line terminal (OLT). “Here there are real space and cost savings using arrays of reflective electro-absorption modulators given their low power requirements,” says Smith. “If we can do this with little or no cooling required there will be significant savings compared to a tunable laser solution.”
ADVA Optical Networking points out that with an 80-channel WDM-PON system, there will be a total of 160 wavelengths (see the business case for WDM-PON). “If you consider 80 clients at the OLT being terminated with 80 SFPs, there will be a cost, energy consumption and form-factor overkill,” says Klaus Grobe, senior principal engineer at ADVA Optical Networking. “The only known solution for this is high integration of the transceiver arrays and that is exactly what C-3PO is about.”
The low-power aspect of C-3PO for WDM-PON is also key. “In next-gen access, it is absolutely vital,” says Grobe. “If the technology is deployed on a broad scale - that is millions of user lines – every single watt counts, otherwise you end up with differences in the approaches that go into the megawatts and even gigawatts.”
There is also a benchmarking issue: the WDM-PON OLT will be compared to the XG-PON standard, the next-generation 10Gbps Gigabit passive optical network (GPON) scheme. Since XG-PON will use time-division multiplexing, there will be only one transceiver at the OLT. But this is what a 40- or 80-channel WDM-PON OLT will be compared with.
CIP will also be working closely with 3-CPO partner, IMEC, as part of the design of the low-power ICs to drive the modulators.
Project timescales
The C-3PO project started in June 2010 and will last three years. The total funding of the project is €2.6 million with the European Union contributing €1.99 million.
The project will start by defining system requirements for the WDM-PON and optical transmission designs.
At CIP the project will employ the equivalent of two full-time staff for the project’s duration though Smith estimates that 15 CIP staff will be involved overall.
ADVA Optical Networking plans to use the results of the project – the WDM-PON and possibly the high-speed transmission interfaces - as part of its FSP 3000 WDM platform.
CIP expects that the technology developed as part of 3-CPO will be part of its advanced product offerings.
BroadLight’s GPON ICs: from packets to apps
BroadLight has announced its Lilac family of customer premise equipment (CPE) chips that support the Gigabit Passive Optical Network (GPON) standard.
The company claims its GPON devices with be the first to be implemented using a 40nm CMOS process. The advanced CMOS process, coupled with architectural enhancements, will double the devices' processing performance while improving by five-fold the packet-processing capability. The devices also come with a hardware abstraction layer that will help system vendors tailor their equipment.

"Traffic models and service models are not stable, and there are a lot of differences from carrier to carrier"
Didi Ivancovsky, BroadLight
Lilac will also act as a testbed for technologies needed for XG-PON, the emerging next generation GPON standard. XG-PON will support a 10 Gigabit-per-second (Gbps) downstream and 2.5Gbps upstream rate, and is set for approval by the International Telecommunication Union (ITU) in September.
Why is this important?
GPON networks are finally being rolled out by carriers after a slow start. Yet the GPON chip market is already mature; Lilac is BroadLight’s third-generation CPE family.
Major chip vendors such as Broadcom and Marvell are also now competing with the established GPON chip suppliers such as BroadLight and PMC-Sierra. “The [big] gorillas are entering [the market],” says Didi Ivancovsky, vice president of marketing at BroadLight.
BroadLight claims it has 60% share of the GPON CPE chip market. For the central office, where the optical line terminal (OLT) GPON integrated circuits (ICs) reside, the market is split between 40% merchant ICs and 60% FPGA-based designs. BroadLight claims it has over 90% of the OLT merchant IC market.
The Lilac family is Broadlight’s response to increasing competition and its attempt to retain market share as deployments grow.
GPON market
US operator Verizon with its FiOS service remains the largest single market in terms of day-to-day GPON deployments. But now significant deployments are taking place in Asia.
“Verizon might still be the largest individual deployer, but China Telecom and China Mobile are catching up fast,” says Jeff Heynen, directing analyst, broadband and video at Infonetics Research. “In fact, the aggregate GPON market in China is now larger than what Verizon has been deploying, given that Verizon’s OLT numbers have really slowed while its optical network terminal (ONT) shipments remain high at some 200,000 per quarter.”

“Verizon might still be the largest individual deployer, but China Telecom and China Mobile are catching up fast”
Jeff Heynen, Infonetics Research
Chinese operators are deploying both GPON and Ethernet PON (EPON) technologies. According to BroadLight, Chinese carriers are moving from deploying multi-dwelling unit (MDU) systems to single family unit (SFU) ONTs.
An MDU deployment involves bringing PON to the basement of a building and using copper to distribute the service to individual apartments. However such deployments have proved less popular that expected such that operators are favouring an ONT-per-apartment.
“Through this transition, China Telecom and China Unicom are also making the transition to GPON,” says Ivancovsky. “End–to-end prices of EPON and GPON are practically the same,” GPON has a download speed of 2.5Gbps and an upload speed of 1.25Gbps (Gbps) while for EPON it is 1.25Gbps symmetrical.
China Telecom and China Unicom are deploying GPON is several provinces whereas in major population centres the PON technology is being left unspecified; vendors can propose either the use of EPON or GPON. “This is a big change, really a big change,” says Ivancovsky.
In India, BSNL and a handful of private developers have been the primary GPON deployers, though the Indian market is still in its infancy, says Heynen. Ericsson has also announced a GPON deployment with infrastructure provider Radius Infratel that will involve 600,000 homes and businesses.
“I expect there to be a follow-on tender for BSNL later this year or early next year that will be twice the size of the first tender of 700,000 total GPON lines,” says Heynen. He also expects MTNL to begin deploying GPON early next year.
In other markets, Taiwan’s Chunghwa Telecom has issued its first tender for GPON. Telekom Malaysia is deploying GPON as is Hong Kong Broadband Network (HKBN), while in Australia the National Broadband Network Company will roll-out a 100Mbps fibre-to-the-home network to 90% of Australian premises over eight years working with Alcatel-Lucent.
“Let’s not forget about Europe, which has been basically dormant from a GPON perspective,” adds Heynen. “We now have commitments from France Telecom, Deutsche Telekom, and British Telecom to roll out more FTTH using GPON, which should help increase the overall market, which really was being driven by Telefonica, Portugal Telecom, and Eitsalat.”
Infonetics expects 2010 to be the first year that GPON revenue will exceed EPON revenue: US $1.4 billion worldwide compared to $1.02 billion. By 2014, the market research firm expects GPON revenue to reach $2.5 billion with EPON revenue - 1.25Gbps and 10Gbps EPON - to be US $1.5 billion. “At this point, China, Japan, and South Korea will be the only major EPON markets with many MSOs also using EPON for FTTH and business services,” says Heynen.
What’s been done?
BroadLight offers a range of devices in the Lilac family. It has enhanced the control processing performance of the CPE devices using 40nm CMOS, and has also added more network processor unit (NPU) cores to enhance the ICs’ data plane processing performance.
“It’s been the same story for some time now,” says Heynen. “System-on-chip vendors differentiate themselves on four key aspects: footprint, power consumption, speed and, most importantly, cost”
A key driver for upping the Lilac family’s control processor’s performance is to support the Java programming language and the OSGi Framework, says Ivancovsky. The OSGi Framework used with embedded systems has yet to be deployed on gateways but is becoming mandatory. This will enable the CPE gateway to run downloaded applications much as applications stores now complement mobile handsets.
BroadLight has also doubled to four the on-chip RunnerGrid NPU cores. “Traffic models and service models are not stable, and there are a lot of differences from carrier to carrier” says Ivancovsky. “This [on-chip] flexibility helps us to have a single device that can support many different requirements.”
As an example, Broadlights cites South Korean operator, SK Broadband, which is deploying an ONT supporting two gigabit Ethernet (GbE) ports – one for laptops and the other for the home’s set-top box. Thus a single GPON 2.5Gbps stream is delivered down the fibre and shared between the PON’s 32 or 64 ONTs, with each ONT having two 1GbE links.“The carrier wants to limit the IPTV downstream rate according to the service level agreement,” says Ivancovsky. Having the network processor as part of the CPE, the carrier can avoid deploying more more expensive NPUs at the central office.
The overall result is a Lilac family rated at 2,000 Dhrystone MIPS (DMIPS) and a packet processing capability of 15 million packets per second (Mpps) compared to BroadLight’s current-generation CPE family of 650-900 DMIPs and 3Mpps.
“Broadlight understands that you have to have a range of chips that provide flexibility across a wide range of CPE and infrastructure types,” says Heynen. The CPE demands of a Verizon differ markedly from those of China Telecom, for example, primarily because average-revenue-per-user expectations are so different. Verizon wants to provide the most advanced integrated CPE, with the ability to do TR-069 remote provisioning and both broadcast and on-demand TV, while China Telecom is concerned with achieving sustained downstream bandwidth, with IPTV being a secondary concern, he says.
Heynen also highlights the devices’ software stack with its open application programming interfaces (APIs) that allow third-party developers to develop applications on top of features already provided in BroadLight’s software stack.
“Residential gateway software stacks used to be dominated by Jungo (NDS). But now chipset companies are developing their own, which helps to reduce licensing costs on a per CPE basis,” says Heynen. “If a silicon vendor can provide a hardware abstraction layer like this, it makes it very attractive to system vendors who need an easy way to customise feature sets for a wide range of customers.”
Is the Lilac GPON family fast enough to support XG-PON?
“We are deep in the design of XG-PON end-to-end: one team is working on the OLT and one on the ONT,” says Ivancovsky. “We expect an FPGA prototype very early in 2011.”
The first XG-PON product will be an OLT ASIC rated at 40Gbps: supporting four XG-PON or 16 GPON ports. One XG-PON challenge is developing a 10Gbps SERDES (serialiser/ deserialiser), says Ivancovsky: “The SERDES in Lilac is a 10Gbps one, a preparation for XG-PON devices.”
Meanwhile, the first XG-PON CPE design will be implemented using an FPGA but the control processor used will be the one used for Lilac. As for data plane processing, NPUs will be added to the OLT design while more NPUs cores will be needed within the CPE device. “The number of cores in the Lilac will not be enough; we are talking about 40Gbps,” says Ivancovsky.
Lilac device members
Ivancovsky highlights three particular devices in the Lilac family that will start appearing from the fourth quarter of this year:
- The BL23530 aimed at GPON single family units with VoIP support. To reduce its cost, a low-cost packaging will be used.
- The BL23570 which is aimed at the integrated GPON gateway market.
- The BL23510, a compact 10x10mm IC to be launched after the first two. The chip’s small size will enable it to fit within an SFP form-factor transceiver. The resulting SFP transceiver can be added to connect a DSLAM platform, or upgrade an enterprise platform, to GPON.
“This new system-on-chip is a technology improvement, especially with respect to the residential gateway software layer, which is a requirement among most operators,” concludes Heynen. “But it should be noted this is an addition to, not a replacement for, existing BroadLight chips that solve different infrastructure requirements.”
