Low-cost FTTH Solution

Fiber-To-user Fiber To The Home -- FTTH) access technology, as The final and permanent broadband access solution in The future, has been widely used in Japan and The United States for about 5 million users ), more and more attention has been paid to our country. As The first company in China that specializes in R & D and production of FTTH and FTTH To The Desktop-FTTD equipment, we have recently received many FTTH application requirements, in the process of communicating with users and providing solutions, we found that the biggest obstacle to FTTH Development in China is the high investment cost. We believe that the right selection of access technologies suitable for China's national conditions, the development of low-cost FTTH access devices is the key to the development of FTTH.

1. The high cost of equipment leads to low investment efficiency, which is a key factor hindering the development of FTTH.

As we all know, the current price of FTTH equipment is still very high, and the first-line price is usually nearly $1000, but it is still well developed in Japan, the United States and other developed countries, one of the reasons is that its telecom operators can charge users a higher service fee. It is understood that Japanese telecom operators charge FTTH users-yen service fee per month, equivalent to about-yuan, FTTH users in the United States each month service fee is about-USD, the FTTH Network of telecom operators can be withdrawn within two to three years. This investment benefit is obviously good.

But in China, the situation is completely different. Currently, due to fierce market competition in many cities in China, the monthly usage fee for ADSL and LAN broadband access based on Category 5 lines has been reduced to less than 50 RMB, and the usage fee is relatively high in some regions, for example, in Shenzhen, the monthly usage fee is only RMB 100. The fee level based on this broadband access service cannot support FTTH Network Construction and operation, and the investment recovery period lasts for up to 10 years. This investment benefit obviously cannot arouse the investment interest of telecom operators. It can be seen that the broadband access market requires a low-cost FTTH. only low-cost FTTH will have application and development opportunities, and there will certainly be development opportunities. The so-called low-cost FTTH should be less than 2000 yuan or even 1000 yuan per line. Only in this way can FTTH be widely used and developed in China.

2. FTTH access technology in line with national conditions
The technical solution to implement FTTH directly determines the manufacturing cost of FTTH equipment. At present, there are two main types of FTTH Access Technology: EPON and GPON Based on Passive Optical Network (Passive Optical Network-PON) access technology, and Active Optical Network-AON Based on Active switching of residential areas) fiber P2P technology.
A decade ago, when PON technology was proposed, it was because the optical fiber was very expensive, and each core was tens of Yuan or even dozens of Yuan per meter), while PON's point-to-point P2MP technology could effectively save optical fiber, especially when the Passive Optical splitter is very close to the user, and PON is a passive network for easy maintenance and management. Today, with the maturity and popularization of optical fiber production technology, the market price of optical fiber cables per core is only a few cents per meter) is already lower than the price of ordinary copper cables, the advantage of PON to save optical cables is not prominent today.
In addition, the main target market of FTTH in China is residential buildings in small and medium-sized cities. Urban Residential Buildings are generally garden-style residential buildings. Their prominent features are: high household density, and residential areas are equipped with communication equipment rooms, it is mainly used to install broadband access equipment for telecom operators. Therefore, the advantages of PON passive networks cannot be fully realized and embodied in residential areas in China. Due to the inherent high cost of devices, shared bandwidth among multiple users, scattered distribution nodes, users are not allowed to choose their own carriers, the utilization of access ports is low, and the network structure is not flexible, it is precisely because the Fiber P2P network structure of AON can be easily overcome and avoided. In particular, the cost of PON equipment is much higher than that of AON, and the high cost has become the biggest obstacle to PON application promotion. Therefore, based on the characteristics of residential communities in China, we believe that the low-cost Active exchange AON peer-to-peer P2P technology is more in line with China's national conditions.
3. Low-Cost FTTH System for initial communication
As The first company in China that specializes in R & D and production of Fiber To The Home-FTTH equipment, Shenzhen shoumai Communication Technology Co., Ltd. fully considers The characteristics of China's FTTH market, we have successfully launched an OnAccess series FTTH product with independent intellectual property rights that meets China's national conditions and the above low-cost requirements, providing flexible and low-cost FTTH solutions for the promotion of FTTH in China.

① FTTH Broadband Access Solution
The Network consists of the Optical Line Terminal-OLT) OnAccess5xxx series of low-cost Optical port switches and the Optical Network Unit-ONU) onaccessh1001. The transmission media is a single-mode optical fiber. You can select either a single fiber or a dual fiber. An OnAccess5xxx optical switch can connect to the OnAccessH1001 optical network unit of 24 users. OnAccessH1001 can be connected to up to four computers or IP phones at the same time. If you only have one computer, you can select the OnAccess1001 Optical Fiber Nic to be inserted into the computer and directly connect to the optical fiber. The access bandwidth is two-way 100 M, and the transmission distance is 20 km.

② FTTH broadband, CATV, and telephone three-in-one access solution the core network device is the OnAccess2224 video multiplexing optical fiber switch, the video multiplexing optical fiber switch has 24 CATV signal Mbps single-mode single-fiber interface, a CATV optical signal wavelength of 1550nm) input port and two M data ports; the video multiplexing optical fiber switch is connected to the OnAccessH1004 optical network unit of each information point in a point-to-point manner, and provides users with a duplex M rate for high-speed access to the Internet, CATV broadcast signals and telephone access; the OnAccessH1004 Optical Network Unit provides a single-mode single-fiber interface connected to the OnAccess2224 video multiplexing optical fiber switch, a CATV 75Ω coaxial cable rfinterface, four 10 M/100 M RJ45 interfaces, and a ordinary phone. interface; CATV signal transmission uses an independent transparent transmission channel to ensure full compatibility with high-definition digital TV systems in the future. To further reduce device costs, shoumai communication also provides dual-fiber and tri-fiber access solutions.

③ Outstanding features of AON-based FTTH solution for shoumai Communication

The AON-based FTTH solution of shoumai communication has the following outstanding features:

Low cost, the price of broadband access devices per line is about-RMB, and the price of triple play access devices per line is about-RMB;
Supports Internet broadband, CATV, and telephone connections;
You can select single-fiber or dual-fiber connections for media access;
High bandwidth, easy to provide two-way M and M bandwidth leased line access;
Flexible network structure and low O & M cost;
It is centrally deployed in the residential data center for easy numbering, maintenance, and management;
Allowing users to freely select carriers is conducive to competition among multiple carriers;
No need to add optical cables from the central data center to the residential area;
The port usage of the device is very high and can be expanded gradually based on the increase in the number of connected users;
Support for foreseeable new businesses in the future: videophone, VOD, digital cinema, remote office, Online exhibition, TV education, telemedicine, data storage and backup, etc.

④ Investment benefit analysis of shoumai communication FTTH Solution

For the FTTH solution for broadband access, we assume that the average first-line equipment cost is 1300 yuan, and the cable laying cost is 500 yuan per information point, that is, each user invests 1800 yuan; 100 yuan per month, operation and maintenance costs account for 50% of the Monthly Access Fee, that is, 50 yuan. In this way, we can make a profit of 50 RMB per month. It takes three years to recover all the investment. In the telecom industry, this return rate should be good at the moment.

For the broadband, CATV, and telephone three-in-one access solution, we assume that the average first-line equipment is 2500 yuan, and the cable laying cost is 500 yuan per information point, that is, each user invests 3000 yuan; 100 yuan of broadband access fee is collected per month for users, 50 yuan of CATV access fee is collected per month, and 400 yuan of CATV access fee is collected at a time. The operation and maintenance costs account for 50% of the Monthly Access Fee, that is, 75 yuan. In this way, we can make a profit of 75 RMB per month, and we only need three years to recover all the investment. The return rate is also very good.