FTTH Development in Hong Kong
FTTH Development in Hong Kong
FTTH Development in Hong Kong
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<strong>FTTH</strong> <strong>Development</strong><br />
<strong>in</strong> <strong>Hong</strong> <strong>Kong</strong><br />
17 June 2009<br />
1
The Fixed L<strong>in</strong>e Liberalization History<br />
•Close to 14 years<br />
•Free market approach<br />
•Three new entrant licenses granted <strong>in</strong><br />
1995<br />
•HKBN is the second batch of new entrant,<br />
with license granted <strong>in</strong> 2000<br />
2
The Model<br />
•The Government Strategies<br />
–Light-handed approach<br />
–No pre-set limit on the number of licensees<br />
–No Government support<br />
•The result<br />
–Only facility-based operator could survive. No<br />
successful case on service-based operator (<strong>in</strong>clud<strong>in</strong>g<br />
SONET)<br />
–All operators survived are fully <strong>in</strong>tegrated one (ie.<br />
NetCo + OpCo + RSP)<br />
3
The Survivors<br />
4
HKBN –the only end-to-end NGN Provider<br />
•The other<br />
alternative network<br />
operator relies on<br />
leas<strong>in</strong>g the cable<br />
from the <strong>in</strong>cumbent<br />
(called Type II<br />
Interconnection) to<br />
provide the service,<br />
but HKBN does not<br />
•We provide the endto-end<br />
connection<br />
by our own facilities<br />
for all customers<br />
HGC Exchange<br />
NWT Exchange<br />
NWT Fibre<br />
HKBN Exchange<br />
Type II Interconnection at<br />
In-build<strong>in</strong>g Level<br />
(Still available)<br />
PCCW Exchange<br />
HGC Fibre<br />
PCCW Copper<br />
HKBN Fibre<br />
PCCW<br />
Telephony<br />
Wire-l<strong>in</strong>e<br />
Build<strong>in</strong>g<br />
MDF Room<br />
Type II Interconnection at Telephone Exchange<br />
Level (Phased out s<strong>in</strong>ce 30 June 2008)<br />
HKBN Fibre /<br />
Cat-5 Data Cable<br />
5
<strong>FTTH</strong> <strong>Development</strong> <strong>in</strong> <strong>Hong</strong> <strong>Kong</strong><br />
•Accord<strong>in</strong>g to <strong>FTTH</strong><br />
Council, the <strong>FTTH</strong> /<br />
FTTB+LAN<br />
household<br />
penetration <strong>in</strong> <strong>Hong</strong><br />
<strong>Kong</strong> is around 30%<br />
•There are around<br />
2,300,000 households<br />
<strong>in</strong> <strong>Hong</strong> <strong>Kong</strong><br />
•HKBN has around<br />
800,000 number of<br />
subscribers<br />
6
Our Network at a Glance<br />
•The second largest<br />
alternative network<br />
•The whole network<br />
was built without any<br />
Government support<br />
•Two types of<br />
technologies<br />
–FTTB + LAN<br />
–<strong>FTTH</strong> (GPON)<br />
Network<br />
Coverage<br />
Residential<br />
Corporate<br />
HKBN<br />
(Feb 2009)<br />
1.5 million<br />
households<br />
1,000<br />
build<strong>in</strong>gs<br />
The Market<br />
Size<br />
2.3 million<br />
households<br />
1,500 –<br />
2,000<br />
active<br />
build<strong>in</strong>gs<br />
7
Do we need high bandwidth connection?<br />
GPON Service<br />
Metro-Ethernet<br />
Service<br />
FibreHome1000<br />
FibreHome200<br />
FibreHome100<br />
50% of our<br />
customers<br />
demand<strong>in</strong>g speed<br />
not able to<br />
provided by the<br />
legacy network<br />
Not Applicable<br />
8
Do we need upstream bandwidth?<br />
The Traffic Profile of HKBN’s<br />
five 10G l<strong>in</strong>ks to HKIX<br />
Upstream Traffic<br />
Downstream Traffic<br />
9
Our Subscriber Growth<br />
Thousand Subscribers<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
10
The Fall<strong>in</strong>g PCCW Price<br />
11
Rais<strong>in</strong>g HKBN Broadband Blended ARPU*<br />
Total Broadband Blended Average (HK$/Month)<br />
250<br />
200<br />
150<br />
100<br />
50<br />
113<br />
Ris<strong>in</strong>g ARPU + Subscription Growth<br />
is evidence of FTTX advantage<br />
123<br />
148<br />
175 175 177<br />
191<br />
196<br />
0<br />
2H FY05 1H FY06 2H FY06 1H FY07 2H FY07 1H FY08 2H FY08 1H FY09<br />
Note: * For exit acquisition and contract renewal<br />
12
Our Underground Fibre Network<br />
13
The High Rise Build<strong>in</strong>gs <strong>in</strong> <strong>Hong</strong> <strong>Kong</strong><br />
•The local loop is<br />
not the last mile<br />
<strong>in</strong> <strong>Hong</strong> <strong>Kong</strong><br />
•The <strong>in</strong>-build<strong>in</strong>g<br />
network is the<br />
actual “last mile”<br />
•HKBN has built<br />
our own <strong>in</strong>build<strong>in</strong>g<br />
network<br />
14
Our Superior In-Build<strong>in</strong>g Blockwir<strong>in</strong>g<br />
• Proper control on<br />
cable length<br />
• Meet Gigabit<br />
Ethernet<br />
(1,000Mbps)<br />
standard<br />
• Symmetric<br />
Connection<br />
R/F<br />
39/F<br />
38/F<br />
37/F<br />
36/F<br />
35/F<br />
34/F<br />
33/F<br />
32/F<br />
31/F<br />
30/F<br />
29/F<br />
28/F<br />
27/F<br />
26/F<br />
25/F<br />
24/F<br />
23/F<br />
22/F<br />
21/F<br />
20/F<br />
19/F<br />
18/F<br />
17/F<br />
16/F<br />
15/F<br />
14/F<br />
13/F<br />
12/F<br />
11/F<br />
10/F<br />
9/F<br />
8/F<br />
7/F<br />
6/F<br />
5/F<br />
4/F<br />
3/F<br />
2/F<br />
1/F<br />
G/F<br />
SB<br />
SB<br />
SB<br />
SB<br />
FD<br />
F<br />
FD<br />
F<br />
40 Storeys (132 metres)<br />
15
Our <strong>FTTH</strong> (GPON) Deployment<br />
•<strong>FTTH</strong> (GPON) was<br />
<strong>in</strong>troduced s<strong>in</strong>ce<br />
mid 2007<br />
•Update As of Jan<br />
2009<br />
–345,000<br />
households and<br />
135 non-residential<br />
build<strong>in</strong>gs<br />
–Around 5,000<br />
customers<br />
connected<br />
In-Build<strong>in</strong>g Deployment<br />
(Splitter <strong>in</strong>side the Fibre<br />
Panel)<br />
16
Our Big Hairy Audacious Goal<br />
<br />
• We built our<br />
network from<br />
scratch to 1 million<br />
households<br />
coverage with<strong>in</strong> 32<br />
months after the<br />
grant of license<br />
• We are now the<br />
second largest <strong>in</strong><br />
<strong>Hong</strong> <strong>Kong</strong><br />
• We will repeat the<br />
miracle to be the<br />
number one by<br />
2016 <br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
17
Thank You<br />
18
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