Broadband Services and FTTH Development of China Unicom Dr. Xiongyan Tang China Unicom Research Institute 2012-5-9 ContentsContents Overview of broadband access of China Unicom Drivers and challenges for FTTH Applications of PON technologies Summary Broadband access in China By the end of 2011, China had more than 513 million Internet users, of which more than 392 million were broadband (BB) users. Chinas BB users account for 98.9% of the countrys total netizens In the year 2011, the number of China BB access subscribers increased by 30 million and reached 156.5 million. In Q1 2012, there is an increase of 7.55 million BB subscribers. (MII) China Internet UsersChina Broadband Access Subscribers Broadband access of China Unicom By the end of 2011, China Unicom had 55.65 million BB access subscribers, of which 90% (41%) enjoyed bandwidth of more than 2M (4M) . In 2011, BB services increased by 18% and the service revenue of fixed BB surpassed fixed voice s for the first time. At end Q1 2012, the number of BB subscribers reached 58.28 million with 2.637 million new additions. The ARPU slightly decreased to RMB 56.1. Intheyear2011,ChinaUnicomconstructed20millionnewBB ports, where FTTx accounting for 80%. The number of BB ports reached 85.51 million, of which FTTB/H ports accounting for 45%. China Unicom Broadband Subscription Growth 0 10 20 30 40 50 60 08-1209-609-1210-610-1211-611-12 BB subs： million Time (y-m) New services driving IP traffic growth Web2.0Video Cloud Computing 0 20000 40000 60000 80000 200920102011201220132014 Global IP Traffic InternetManaged IPMobile Data Source: Cisco VNI 2010, Global IP Traffic ,2009-2014(PB per month) CAGR:34% In 5 years, Internet traffic will increase fourfold. Mobile data traffic will increase 26-fold. China to upgrade broadband access “Broadband China” strategy to be implemented China ranks No.1 in the world by the number of broadband subscribers and FTTx lines. But China is still at the stage of “low-speed broadband” (mostly 2M-4M). Chinas broadband access bandwidth lags far behind some developed countries or regions. Its essential for China to increase the access bandwidth in order to improve its national competitiveness in the world. China ranked No.90 by the average Internet speed (data: Akamai，Dec. 2011) Averageconnectionspeed (Dec. 2011) China: 1.4Mb/s World average: 2.7Mb/s Korea: 16.7Mb/s Broadband Popularization and Speed Upgrade On 30 March 2012, China MIIT(Ministry of Industry and Information Technology) initialized the national action plan for broadband popularization and speed upgrade. The goals for the year 2012: (1) New addition of households covered by FTTH: 35 million; (2) The proportion of BB subscribers with access speed of more than 4M: 50%; (3) New addition of BB subscribers: 20 million (4) Increase the coverage of WiFi; (5) Popularize BB applications and make the average price per Mbps decrease. BB development goals of China Unicom in 2012 New addition of households covered by FTTH: 10 million; The proportion of BB subscribers with access speed of more than 4M: 50%; New BB subscribers: 9 million; New added WiFi AP: 300 thousands “光网世界光网世界沃宽天下沃宽天下” FTTH in metropolis By the end of 2011, the number of BB subscribers in Beijing reached 5.234 million. FTTH covered 4.1 million homes (56% of all) in Beijing and the number of subscribers reached 1 million. In Nov. 2011, China Unicom Beijing Branch begun free access speed upgrade without tariff change: 512k to 1M, 1M to 2M, 2M to 10M, 4/8M to 20M By the end of 2012, 20M access bandwidth will be available for all BB users in Beijing. Before the year 2015, FTTH will completely cover Beijing and provide 100Mbps access capabilities for households and 10Gbps for business users. Beijing ContentsContents Overview of broadband access of China Unicom Drivers and challenges for FTTH Applications of PON technologies Summary Drivers for FTTx (1) National strategy Upgrading access bandwidth is the national strategy of China for improving its competitiveness in the world. Chinas national broadband strategy (Broadband China) is to come out soon, in which FTTH would be one of the focuses. Market competition Incumbent BB operators (China Telecom South, China Unicom North) need to upgrade their access infrastructure to maintain market leadership. Competitive broadband operators (China TelecomNorth,ChinaUnicomSouth,ChinaMobile,Cable operators) without legacy copper wires should take advantage of optical access to offer differentiated services. Drivers for FTTx (2) Service demands HSI,video services and trip-play (IPTV) are becoming the mainstream of ICT services. Customers require higher speed and more reliable broadband access. High speed Internet access IPTV/Triple Play Multimedia information services (e-gov, e-health, e- education,) P2P (peer2peer) applications Video surveillance Cloud computing Hospital Shopping Entertainment education “3-network conv