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Local Loop (Access) ADSL

Local Loop (Access) ADSL. Presentation Overview. What was the problem (Prior to introduction of DSL) ? Why ADSL is a/the Solution ADSL Deployment within Gulf States ADSL Deployment in Bahrain Issues to address when deploying DSL (Problems/Solutions) Conclusion & Recommendation.

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Local Loop (Access) ADSL

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  1. Local Loop (Access) ADSL

  2. Presentation Overview What was the problem (Prior to introduction of DSL)? Why ADSL is a/the Solution ADSL Deployment within Gulf States ADSL Deployment in Bahrain Issues to address when deploying DSL (Problems/Solutions) Conclusion & Recommendation

  3. What was the problem (Prior to introduction of ADSL) Bill Gates "gave his vote toward digital subscriber line (DSL) technology as the next big step in bandwidth" in his keynote address at the Comdex/Fall '97 trade show. - (Source: COMTEX Newswire dated November 11, 1997) "We're sucking information through a straw when what we really need is a fire hose.” -Eckhard Pfeiffer, President and Chief Executive Officer, Compaq (Source: Comdex Keynote Presentation, December 1997.) "The new DSL technologies are expected to drive a wide variety of applications in education, health care and telecommuting... allow(ing) consumers in homes and businesses to have access to high-speed services normally requiring expensive fiber optic line connections.” -Vinton Cerf, MCI's Executive Vice President of Internet Architecture. -(Source: interview published April 22, 1997 in the CyberTimes on-line version of The New York Times) "We want to get more bandwidth and capacity out of our existing copper loop using ADSL.” -Duane Ackerman, President and CEO of BellSouth(Source: interview published March 31, 1997 in CommunicationsWeek, p. 14)

  4. Why ADSL is a/the Solution - 1

  5. Why ADSL is a/the Solution - 2 • Providers: • Cost effectiveness (relative to fiber) • Marketability of Applications • Off-load Internet Traffic from Switches • Users: • Economical Bandwidth • Always on Connectivity • Used for more than one service • Security • Quality

  6. What can I use ADSL for? • High-speed Internet access • Corporate Local Area Network (LAN) access • E-Commerce • Telecommuting / Virtual Private Network (VPN) • Distance learning • Video-On-Demand • Voice over Internet Protocol (VoIP) / IP dialtone • Video conferencing • Medical imaging • Real-time information exchange • Entertainment - online gaming

  7. ADSL Deployment within Gulf States - 1 Suppliers of DSL

  8. ADSL Internet Connections in the Gulf States by Country, 2002 18 . 9 20 . 0 ) 18 . 0 000 16 . 0 14 . 0 12 . 0 10 . 5 10 . 0 ADSL Connections 8 . 0 5 . 1 6 . 0 4 . 0 1 . 4 ( 2 . 0 0 . 2 0 . 0 0 . 0 Kuwait Bahrain Qatar Saudi UAE Oman Arabia ADSL Deployment within Gulf States - 2

  9. ADSL Deployment within Gulf States - 3 GCC average: 2.8% Note: GCC average is calculated based on total DSL Customers divided by total Internet Customers within GCC.

  10. ADSL Deployment in Bahrain - 2

  11. How do we connect our Speednet customers? ATM ADSL Deployment in Bahrain - 3 Inet Platform PSTN ATM NODE DSLAM

  12. e TV TV Amulet ADSL STB Amulet ADSL STB PC for Internet Access PC for Internet Access e e e Splitter Splitter 1 1 1 e BRAS Internet ADSL Deployment in Bahrain - 4 Video Server DSLAM Management Controller Encoder ATM DSLAM LAN Splitter TV Amulet ADSL STB PC for Internet Access

  13. ADSL Deployment in Bahrain - 5 Internet Acccess Services Revenue Comparison ( 2002 ) 100 % 90 % Speednet 80 % Inet LL & FR 70 % 60 % Inet Prepaid 50 % % of Total Access Revenue Inet 900 40 % Inet ISDN 30 % Inet Dial - up 20 % 10 % 0 % Jul Jan Jun Mar Apr Oct Nov May Aug Feb Sep Dec

  14. Worldwide Broadband ConnectionsDSL Continues to Dominate • Worldwide BB to reach 225 million connections in 2006 • DSL largest market worldwide, and expected to remain so to 2006: Relies on current infrastructure, self installation as high as 70% in US • Cable modem most viable in markets with already installed cable systems • FWB not suitable for mass market deployment: costs, not suited for wet or mountainous geographies, high license fees in Europe

  15. Local Loop Unbundling - Doomed to failure? • Efforts to loosen incumbent grip on local loop by regulators generally fruitless in Europe, US, A/P • Incumbent NSPs protecting their competitive advantage (sole access to local loop) • Forcing incumbents to permit competitive NSPs access to local loop misguided: • Lack of information on condition of local loop to competitive NSPs (sometimes, even to incumbent) • Technical & logistical complexity: outdated technologies • Time: Long legal challenges by incumbent detrimental to competitive NSP business models

  16. Wholesale Network Access - The only viable solution? • Experts believe creating equitable wholesale market (most practical solution). • Regulators must: • Ensure incumbent offers wholesale service • Bring down wholesale prices in rapid timeframe • Proper & equitable wholesale price controls is a must • Avoid cross-subsidization by incumbent through transparency and accounting separation of incumbent wholesale & retail operations

  17. Conclusion & Recommendation • ADSL provides a new way to use existing phone lines. • It’s faster! • It’s always on! • Voice and data on one line at the same time! • DSL leading the way in broadband deployments • Cable modem is limited by low CATV installed base • Broadband Satellite & Metro Ethernet sporadic and limited • ADSL is the best way to get online! • Development on ADSL is still progressing e.g. ADSL II+ • We Should think of peering and local content

  18. As an interim solution Using existing copper wire for broadband access To be or not to be DSL Very quick deployment Very cost effective Standardised already

  19. Thank You

  20. Appendix

  21. Bahrain ADSL Tariff - 1 Tariff

  22. Qatar & UAE ADSL Tariff - 2

  23. Kuwait Tariff – 3.a

  24. Kuwait Tariff – 3.b

  25. Saudi Tariff – 4

  26. DSL History Bell Labs discovers a new way to make traditional copper wires support new digital services 1985 - 1990 - 1995 - 1996 - 1997 - Now - Phone companies start deploying High-Speed DSL (HDSL) to offer T1 service on copper lines without the expense of installing repeaters. Phone companies begin to promote ADSL as a way to enter the video market. Innovative companies begin to see ADSL as a way to meet the need for faster Internet access Singapore Network launched the first commercial ADSL ADSL is being deployed for fast Internet access in the United States, Europe, East Asia, South America and across the globe

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