Telecom Wholesale customer briefing 22 November 2007 Langham Hotel, Auckland
Agenda Welcome and introduction, Matt Crockett Overview of Telecom s cabinetisation plans, Greg Patchell Q&A session - Coffee break - Cabinetisation consultation, Paul Hayes Wholesale product update, Paul Hayes Q&A session 2
Context We are committed to bringing high speed broadband to NZ We have submitted our cabinetisation plans to the Commission as part of UCLL STD requirement Exchanges and lines impacted Suburbs affected by cabinetisation Planned dates for cabinetisation UCLL and cabinetisation have different objectives: UCLL is about access, cabinetisation is about speed The environment is still evolving with STD sub loop expected This is part of Telecom s $1.4 billion commitment 3
Cabinetisation The path to shorter loops and greater speeds Greg Patchell Chief Technology Officer Telecom New Zealand
What is cabinetisation? Delivers faster broadband speeds to end-users through loop shortening Reduce loop length to deliver minimum 10Mbps to end-users in affected area New equipment (ISAMs) in cabinets Extending ADSL2+ coverage beyond current plan Ethernet coverage expanding to support cabinetisation This is not about closing exchanges The exchange remains a copper centre Not all lines will be cabinetised There is no major coverage expansion as a result of cabinetisation Coverage of broadband by DSLAM is already 93% Coverage will be expanded to fill holes within existing coverage areas in Zones 1, 2, 3a and 3b. 5
Current copper network 130,000 km of distribution cable Nationwide Typically direct buried 9,000 km of feeder cable nationwide Typically in ducts 6
Cabinetisation scenarios 1. Upgrading of existing passive cabinets: A new, fibre-fed, DSLAM-equipped cabinet is installed MPFs are double-terminated/jointed to the new cabinet and existing exchange MDF Broadband services delivered from cabinet not the exchange (for the affected MPFs) PSTN provided either from the exchange via copper feeder or from equipment in the cabinet 2. New cabinets: As above (1); Copper distribution cable re-routed via new cabinet, copper diversion 7
Glen Eden Example Example where where loop loop shortening shortening will will have have dramatic dramatic impact impact for for end end users users Notes: These are illustrative ADSL2+ target speeds for high level network planning scenarios. There is no commitment or schedule to roll out in all or any areas illustrated in this map. These maps should not be used to predict actual individual performance as that will depend on many other factors. 8
Island Bay Example Example where where cabinetisation cabinetisation will will be be minimal due to existing short loops minimal due to existing short loops Notes: These are illustrative ADSL2+ target speeds for high level network planning scenarios. There is no commitment or schedule to roll out in all or any areas illustrated in this map. These maps should not be used to predict actual individual performance as that will depend on many other factors. 9
Impact of cabinetisation Currently deploying 90 cabinets per year, ramping up to 1200 per year with cabinetisation Requires 300 additional field technicians, 50 deployment experts Deploying approximately 3600 cabinets, and more than two million metres of fibre Customer experience: Broadband plan 10Mbps or better National Impacted areas 15Mbps or better National Impacted areas National 20Mbps Impacted areas Current plan: 1Mbps to 5 centres and Ethernet DSL to towns over 10,000 40% 68% 26% 44% 15% 26% New plan: All small townships over 500 lines to 10Mbps 80% 99% ** 63% 78% 45% 56% * Estimated ** Totals will not exceed 99% due to outliers 10
Impact of cabinetisation (continued) Greater opportunities for wholesale DSL and Ethernet product deployment ISAM cabinets capable of future upgrade VDSL 10Mbit/100Mbit/Gbit Ethernet Telecom eager to consult on these issues in anticipation of STD 11
Cabinetisation Forecast Cabinetisation Notice as per UCLL and Co-location STDs Telecom s plans for cabinetisation on a per exchange basis The number or percentage of MPFs in the exchange that will be affected Indication of which MPFs in that exchange that may be affected Suburbs within that exchange area that will be affected Planned dates for cessation of supply of UCLL service and for cabinetisation At least 24 months notice (updated semi-annually) Available on www.ucll.co.nz and www.telecom.co.nz 12
Cabinetisation Forecast Affected area Impacted Planned Cabinet Addresses - listing cabinet ID and the XY co-ordinates of affected addresses within that cabinet area Impacted Exchange Addresses - listing exchange areas which are affected by the planned cabinets detailing exchange ID and XY coordinates of all the addresses within that exchange area Shape files allows development of coverage and location maps using GIS Cabinet polygons Exchange polygons 13
Where will cabinetisation occur? Zone 1 The high density areas of Auckland, Hamilton, Wellington, Christchurch and Dunedin Zone 2 The high density areas of the 28 provincial centres. Key satellite towns of the five main centres Zone 3 The high density areas of small towns with greater than 500 lines Zone 4 The remaining very small towns, low density areas and remote locations such as Scott Base, Chatham Islands, Great Barrier Island 48% of all switched lines 24% of all switched lines 9% of all switched lines 19% of all switched lines 14
Auckland metro cabinetisation plan - Zones Zone 1 Zone 2 Zone 3a Zone 3b 15
Auckland metro cabinetisation plan - 2008 Planned cabinets 2008 Planned cabinets 2009 Planned cabinets 2010 Existing isolated cabinets 16
Auckland metro cabinetisation plan - 2009 Planned cabinets 2008 Planned cabinets 2009 Planned cabinets 2010 Existing isolated cabinets 17
Auckland metro cabinetisation plans - 2010 Planned cabinets 2008 Planned cabinets 2009 Planned cabinets 2010 Existing isolated cabinets 18
Christchurch metro cabinetisation plan - Zones Zone 1 Zone 2 Zone 3a Zone 3b 19
Christchurch metro cabinetisation plan - 2008 Planned cabinets 2008 Planned cabinets 2009 Planned cabinets 2010 Existing isolated cabinets 20
Christchurch metro cabinetisation plan - 2009 Planned cabinets 2008 Planned cabinets 2009 Planned cabinets 2010 Existing isolated cabinets 21
Christchurch metro cabinetisation plan - 2010 Planned cabinets 2008 Planned cabinets 2009 Planned cabinets 2010 Existing isolated cabinets 22
Two groups in Zone 2 Tier 2 towns and cities Typical population >10,000 Key satellite towns of the five main centres not already included City Name Region Lines* City Name Region Lines* Tauranga Bay of Plenty 46,290 Hibiscus Coast Auckland 8,803 Palmerston North Manawatu 30,151 Red Beach Auckland 7,102 Napier Hawks Bay 23,314 Pukekohe Auckland 6,749 New Plymouth Taranaki 22,090 Rangiora Canterbury 5,530 Rotorua Bay of Plenty 22,011 Kaiapoi Canterbury 4,176 Nelson Nelson 20,716 Paraparaumu Wellington 4,136 Hastings Hawks Bay 19,653 Waiheke Auckland 4,035 Whangarei Northland 19,627 Waikanae Wellington 2,399 Invercargill Southland 19,460 Beachlands Auckland 2,005 Wanganui Manawatu 16,582 Titirangi Auckland 1,259 Timaru Canterbury 13,237 Lyttelton Canterbury 1,537 Gisborne Gisborne 12,157 Beachlands Auckland 1,237 Blenheim Marlborogh 10,943 Raumati Wellington 970 Taupo Hamilton 9,617 Kumeu Auckland 849 Masterton Wellington 8,718 Pukerua Bay Wellington 666 Ashburton Canterbury 7,329 Prebbleton Canterbury 604 Levin Manawatu 6,909 Templeton Canterbury 588 Queenstown Otago 6,721 Brighton Otago 524 Cambridge Hamilton 6,086 Runciman Auckland 515 Whakatane Bay of Plenty 5,998 Diamond Harbour Canterbury 463 Richmond Tasman 5,783 Governors Bay Canterbury 337 Fielding Manawatu 5,725 Paekakariki Wellington 238 Oamaru Otago 5,507 Te Awamutu Hamilton 4,621 Tokoroa Hamilton 4,280 Gore Southland 4,199 Hawera Taranaki 4,184 Greymouth Westland 3,745 *Switched PSTN lines inside the high density area of the town or city. Draft and subject to change. 23
Zone 3a 81 towns Zone 3a typically greater than 1,000 lines City Name Region Lines* City Name Region Lines* Matamata Hamilton 3,257 Carterton Wellington 1,886 Motueka Tasman 3,194 Taumarunui Manawatu 1,867 Te Puke Hamilton 3,141 Temuka Canterbury 1,826 Thames Hamilton 3,031 Otaki Wellington 1,814 Wanaka Otago 3,000 Cromwell Otago 1,760 Morrinsville Hamilton 2,906 Hokitika Westland 1,738 Waiuku Auckland 2,894 Te Aroha Hamilton 1,721 Alexandra Otago 2,767 Katikati Bay of Plenty 1,719 Stratford Taranaki 2,517 Kerikeri Northland 1,715 Dannevirke Manawatu 2,491 Paeroa Hamilton 1,702 Waitara Taranaki 2,435 Opotiki Bay of Plenty 1,672 Westport Westland 2,340 Ngaruawahia Hamilton 1,607 Kaitaia Northland 2,297 Putaruru Hamilton 1,596 Kawerau Bay of Plenty 2,295 Wairoa Hawks Bay 1,583 Picton Marlborogh 2,201 Tairua Hamilton 1,538 Huntly Hamilton 2,132 Waimate Canterbury 1,504 Marton Manawatu 2,132 Turangi Hamilton 1,497 Whangamata Hamilton 2,088 Rolleston Canterbury 1,495 Whitianga Hamilton 2,077 Kaikohe Northland 1,432 Balclutha Otago 2,038 Inglewood Taranaki 1,427 Dargaville Northland 2,000 Mahurangi Auckland 1,420 Te Kuiti Hamilton 1,995 Kaikoura Canterbury 1,313 Waipukurau Hawks Bay 1,988 Pahiatua Manawatu 1,308 Waihi Hamilton 1,974 Geraldine Canterbury 1,292 Warkworth Auckland 1,915 Te Puna Bay of Plenty 1,272 *Switched PSTN lines inside the high density area of the town or city. Draft and subject to change. 24
Zone 3a 81 towns (continued) Zone 3a typically greater than 1,000 lines City Name Region Lines* City Name Region Lines* Ohope Bay of Plenty 1,231 Bluff Southland 765 Winton Southland 1,189 Amberley Canterbury 730 Tuakau Hamilton 1,172 Leeston Canterbury 652 Foxton Manawatu 1,164 Takaka Tasman 652 Otorohanga Hamilton 1,164 Waimauku Auckland 364 Te Anau Southland 1,135 Waitakere Auckland 312 Arrowtown Otago 1,117 Spencerville Canterbury 214 Helensville Auckland 1,085 Lincoln Canterbury 1,066 Tairua Hamilton 1,065 Greytown Wellington 1,064 Featherston Wellington 1,023 Woodend Canterbury 993 Ashhurst Manawatu 981 Paihia Northland 936 Wellsford Auckland 929 Raglan Hamilton 911 Omokoroa Bay of Plenty 887 Milton Otago 871 Ruakaka Northland 858 Otatara Southland 857 Eltham Taranaki 851 Darfield Canterbury 850 Renwick Marlborogh 836 Note: a number of these towns have more than 1000 lines at the exchange but have less than 1000 lines that are inside the high density zone of the town. *Switched PSTN lines inside the high density area of the town or city. Draft and subject to change. 25
Zone 3b Zone 3b greater than 500 lines City Name Region Lines* City Name Region Lines* Waihi Beach Bay of Plenty 1,336 Kawakawa Northland 506 Piha Auckland 1,095 Runanga Westland 498 Mangawhai Heads Auckland 934 Twizel Canterbury 498 Taihape Manawatu 887 Te Kauwhata Hamilton 488 Mangonui Northland 841 Hanmer Springs Canterbury 469 Waipawa Hawks Bay 795 Russell Northland 466 Brightwater Tasman 761 Murupara Bay of Plenty 453 Martinborough Wellington 760 Patea Taranaki 437 Methven Canterbury 758 Fairlie Canterbury 426 Edgecumbe Bay of Plenty 727 Ranfurly Otago 425 Bulls Manawatu 688 Palmerston Otago 424 Foxton Beach Manawatu 686 Haumoana Hawks Bay 408 Ohakune Manawatu 683 Maungaturoto Northland 406 Oxford Canterbury 678 Bay View Hawks Bay 398 Kihikihi Hamilton 661 Waiatarua Auckland 394 Riverton Southland 658 Waverley Taranaki 390 Akaroa Canterbury 638 Ngunguru Northland 385 Clive Hawks Bay 637 Otautau Southland 378 Opunake Taranaki 620 Waipu Northland 376 Oakura Taranaki 611 Tapanui Otago 375 Coromandel Hamilton 605 Tirau Hamilton 357 Woodville Manawatu 582 Manaia Taranaki 347 Wakefield Tasman 580 Leigh Auckland 344 Ngatea Hamilton 569 Roxburgh Otago 328 Reefton Westland 546 Clevedon Auckland 238 Waikouaiti Otago 543 Te Horo Wellington 236 Mapua Tasman 536 Linton Manawatu 213 Hikurangi Northland 524 Spring Creek Marlborogh 199 Piha Auckland 520 Patumahoe Auckland 185 Pleasant Point Canterbury 518 Linton Military Camp Manawatu 77 Shannon Manawatu 516 Draft and subject to change 26
Impact of cabinetisation exchange examples AUCKLAND Total MPFs currently on MDF MPFs affected by cabinetisation Remuera 21,607 10,376 Mt Albert 17,743 9,168 CHRISTCHURCH Total MPFs currently on MDF MPFs affected by cabinetisation Mt Pleasant 6,128 3,297 Linwood 6,842 3,345 27
Considerations Resource consent dependencies Local community impact Workforce impacts Standard terms determination for UBA, backhaul and sub-loop unbundling TCF engagement and linkages and workloads of other working parties 28
Wholesale consultation on cabinetisation Paul Hayes Head of Product Management, Telecom Wholesale
Consultation around cabinetisation impacts UCLL impact Providing as much information as possible to access seekers Sub loop unbundling Deployment challenges Locations for co-location New sub loop processes Wholesale product opportunities Enhanced UBA, Video UBA and VDSL2 30
Cabinetisation discovery Industry briefing and consultation Kick-off briefing planned for February 2008 Implementation dependent on STD timings Industry working party via TCF Leverage skills and working relationships already developed Wholesale consume ANS services under the same terms as access seekers Issues to consider: Fibre to the cabinet for Telecom or third-party backhaul Co-location environment standards DLSAM mounting ensuring non-interference with access seeker equipment/cables Treatment of existing UCLL access seekers in the exchange vs. new cabinet-only access seeker 31
Update on Wholesale 2007 product commitments Paul Hayes Head of Product Management, Telecom Wholesale
Overview UCLL update Unbundled Bitstream Access (UBA) ADSL2+ Ethernet Handover Link High Speed Network Service (HSNS) 33
UCLL Update ANS establishment underway Mark Ratcliffe appointed CEO UCLL and co-location trial with ihug and Orcon STD finalised Website launched (www.ucll.co.nz) with secure access seeker area and cabinetisation information Confirmed five UCLL exchanges before Christmas UCLL programme team available Access seeker sessions scheduled 34
Basic UBA Phase I new connections launched 28 September Take up of new connections lower than anticipated Continuing to resolve back office issues affecting automation Working to resolve service company teething issues on POTS v non-pots service Phase II migration capability launching 14 December Initial two-month order restrictions at launch phase (total 50/week across all service providers) Service provider transfer capability scheduled for early 2008 Phase III full STD Basic UBA implementation by 30 June 2008 35
Enhanced UBA Network design phase Delivery over existing ADSL2+ footprint and increasing with cabinetisation Based on multi-class next generation tail concept Four variants delivered over Layer 2 Ethernet: BASIC E (best effort class of service only) EUBA 40k (best effort Internet class + 40k real time class) EUBA 90k (best effort Internet class + 90k real time class) EUBA 180k (best effort Internet class + 180k real time class) expected delivery 90 days after the first three variants 36
ADSL2+ roll out ISAMs implemented Exchanges migrated ASAM to ISAM Exchanges enabled as ADSL2+ Customers connected to an ADSL2+ profile Planned 741 115 115 360,000 Actual at 16/11/07 551 61 54 100,000 74% 53% 47% 28% 37
ADSL2+ cabinetisation programme ADSL2+ roll-out to 160 existing cabinets confirmed as part of current plan Extends to more than 3,000 cabinets as part of the recently announced cabinetisation plans, and beyond the initial five cities Positive impact on Enhanced UBA product variants On-going customer consultation on product opportunities that leverage ADSL2+ capability 38
Ethernet Handover Link 1Gbps Handover Link now available for UBS and Basic UBA High Speed Network Service (HSNS) HSNS pilot with WorldxChange and TelstraClear complete Extended Ethernet reach to support cabinetisation, provides additional coverage for HSNS Additional coverage beyond this will be demand driven Launch scheduled for 3 December 2007 Auckland coverage initially Online pricing calculator 39
HSNS Handover Points: EAS Exchange Sites - Dec 07 EAN Exchange EAN Code Access Speed 10M 100M 1G EAS Exchange Handover Point EAS Code Albany ALY Torbay TBY Ellerslie ELL Ellerslie ELL Glenfield GLF Glenfield GLF Otahuhu OH Papatoetoe POP Manukau City MKY Papatoetoe POP Mayoral Drive MDR Mayoral Drive MDR Remuera RUE Remuera RUE Papatoetoe POP Papatoetoe POP Papakura PAK Papakura PAK EAN Ethernet Aggregation Node, EAS Ethernet Access Switch 40
HSNS Handover Points: EAS Exchange Sites - Feb 08 EAN Exchange EAN Code Access Speed 10M 100M 1G EAS Exchange Handover Point EAS Code Christchurch CH Christchurch CH Claudelands CLE Hamilton HM Courtney Place CPC Wellington WN Dunedin DN Dunedin DN Hamilton HN Hamilton HN Miramar MIR Wellington WN Palmerston North PM Palmerston North PM Porirua PRO Porirua PRO Riccarton RIC Riccarton RIC South Dunedin SOD Dunedin DN Upper Hutt UP Naenae NAE Wellington WN Wellington WN Wellington South WTH Naenae NAE 41
Thank you for your time. Wholesale customer briefing 22 November 2007 Langham Hotel, Auckland