10G PON Start to Takeoff Worldwide

Operator 10GPON Progress

China Telecom Rollout
China Mobile Rollout
Softbank Rollout
SK Broadband Rollout
Singtel Rollout
Vodafone Rollout in 2019
Swisscom Trial, Rollout in 2019
Openreach Trial, Rollout in 2020
TDE Trial, Rollout in 2020

Orange Trial, Rollout in 2020

Bell Test, Rollout in 2020

Etisalat / STC Trial, Rollout in 2020

Service 1Gbps, 4K, VR services Competition ILEC vs CLEC: China Mobile, SKB etc.
Driven SME, 4K Camera, 5G MBH Driven MSO DOCSIS3.1, Bell, etc.

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Build a 10G PON Ready Network to Save Investment

10G PON is Coming Soon But 10G PON Cost Still High SFP Cost Decline with Volume

Ports Cost
GPON shipment 10G PON Cost

*3 ~ 4 times 10G PON SFP Cost

10G PON shipment GPON Cost

Volume

2018 2020 2023 2018 2020 2023

10GPON is Coming Soon, FTTH Deployment need Consider 10GPON Ready

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Spend Less to Get More with 10G PON Ready
FTTH Cost 10GPON OLT+ONT Cost Stable Part : 10G PON Ready for 10
Active Part ~10% PON Card years evolution, get more with less
~ 12%

~10% PON SFP

Variable Part : Deploy on demand, to

ODN and enjoy the cost reduction as the volume
10GPON
Civil Work ~80%
ONT
increase
~88%

GPON 10GPON
Network planning Ready
GPON driven marketing Unified Marketing
GPON with 10G PON
10GPON Or 10GPON Ready Network :
Ready
GPON 10GPON only upgrade SFP
Marketing driven Ready
network planning?

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On Demand PON by Flex-PON 2.0 & RTU Mode
Flexible & Smooth Migration
Flex-PON 2.0 – 6 Mode In 1 Evolution Path 1
Day 1 : GPON Day 2 : XG(S) PON Combo
XG(S)
Combo

GPON RTU

GPON XG-PON Combo Combo

XGS-PON Saved
Card Card
GPON Cost Combo PON Cost
16p Flex-PON 2.0
H901FLHF Target: Unify to XGS PON Combo

Evolution Path 2
Day 1 : PON Combo Day 2 : TWDM PON

TWDM
PON
XG(S)
XG Combo Combo RTU
XGS Combo TWDM-PON
Combo Combo
Saved
Card Card
 16 ports SFP+ XG(S) PON Combo XG/XGS PON Cost TWDM PON Cost
 On-demand PON mode by changing SFP, card investment
saved  Change PON mode On-demand, save investment. 10G PON is ready,
 Low initial cost through RTU mode only change SFP
 One time OSS integration
 GPON, 10G PON ONT deployment on demand.
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Flex-PON Save CAPEX and OPEX than Traditional Solution
Current Solution：Day 1 GPON, Day2 add 10GPON OLT +WDM1r

Drop fiber
XG(S)-PON ONU
1. 10GPON OLT card can not share with
… … GPON
2. Higher OPEX : ODN Change and High
Day1：GPON OLT Day2：XGS-PON OLT Day2：WDM1r GPON ONT Engineering Cost, Additional rack space

Flex-PON Solution： Day1 Flex-PON，Day2 change 10GPON SFP

Flex-PON 2.0 Card Flex-PON 2.0 Card

XG(S)-PON ONU
1. Capex Saving : share same GPON and
… … 10GPON OLT card
GPON SFP XGS-PON Combo SFP+
2. OPEX Saving : No additional rack space
GPON ONT
Day1 : Flex-PON + GPON SFP Day2 : Change GPON SFP to XGS-PON Combo SFP for 10GPON, lower power consumption

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28% TCO Saving : Flex-PON vs Traditional Solution
TCO Comparison from Year1- Year10 TCO Comparison in Parts

TCO In Year 10, the TCO of

Flex-PON is 28% GPON CAPEX 1.19
1.00
lower than old solution
4.5 In Year 4, the TCO of 0.69
4.0 10GPON OLT CAPEX
Flex-PON is 6% lower 0.94
4.0 3.7
than old solution 3.4
3.5 0.00
The initial CAPEX 2.9
WDM1r CAPEX
0.11
3.0 of Flex-PON is ~ 2.5
2.5 16% higher 2.1 2.9 0.77
2.7 Rack Cost OPEX
2.5 1.73
2.0 1.8 2.3
1.4 2.1
1.5 1.9 Power Cost OPEX 0.22
1.0 1.5
1.7 0.21 28% saving
1.0
0.5
0.5 0.8 Total 2.86
3.99
0.0 0.4
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
First Flex-PON + GPON SFP then change XGS-PON
First Flex-PON + GPON SFP then change XGS-PON Combo SFP Combo SFP
First GPON OLT then add 10GPON Card +WDM1r First GPON OLT then add 10GPON Card +WDM1r

Comment: Build GPON FTTH, and then 50% ports upgrade to 10GPON in next 10 years
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