TAILIEUCHUNG - FTTH COMMUNICATIONS DEFERS CAPEX CLOSER TO REVENUE IN THE PON

FTTH Communications is an integrated provider of voice, video and Internet services in Minneapolis. Delivering services to residential and business customers on an all-fiber network, the FTTH Communications business plan depends upon a combination of low costs, exceptional service, and leading-edge technology to increase both the number of subscribers and overall subscriber satisfaction. | h- ilrb-felif SPLICE STORAGE FTTH COMMUNICATIONS DEFERS CAPE. CLOSER TO REVENUE IN THE PON COMMUNICATIONS CASE STUDY SITUATION FTTH Communications is an integrated provider of voice video and Internet services in Minneapolis. Delivering services to residential and business customers on an all-fiber network the FTTH Communications business plan depends upon a combination of low costs exceptional service and leading-edge technology to increase both the number of subscribers and overall subscriber satisfaction. Company managers had seen from other fiber-to-the-home projects around the country how varying take-rates can impact profitability and drain capital from more productive uses such as creation of advanced services. The challenge was to create an infrastructure that maintains capital expenditure as close as possible to revenue generation while at the same time offering reduced operating expenses so that investment in new services is possible. CASE STUDY SOLUTION The solution was based in both architecture and supporting products. FTTH Communications found that the optimum architecture was a passive optical network PON with passive splitters centralized in Fiber Distribution Hubs FDH . Splitters were specified 1x32 to mirror port capacity on optical line terminal OLT cards in the headend data center. With no splitters at Access Terminals AT closer to the homes FTTH Communications has been able to maximize port usage on expensive OLT cards. To illustrate the company uses four-port OLT cards in the data center. Each port supports 32 homes each OLT card supporting a total of 128 homes. Each neighborhood is supported by its own FDH up to 1 152 homes. The first 32 subscribers in the neighborhood are connected to the same 1x32 splitter in the FDH. This splitter is supported by OlT card 1 in the data center. When the 33rd subscriber is added the next splitter in the FDH is put to use which then makes use of port two on OLT card 1. Only when the 129th subscriber signs-up

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