PON and Optical Distribution Network: Assessment of Markets and Technologies

SUMMARY

There is no longer any doubt that after 25 years of being the future technology of access networks, Passive Optical Network (PON) is now being deployed on a large scale in the United States and around the world. For several years there has been an increasing number of FTTP (Fiber-to-the-Premises) deployments, mainly driven by non-traditional carriers, such as public utility companies, municipalities and home developers, as well as visionary competitive local exchange carriers (CLECs). Today, FTTH has also become the technology of choice of incumbent local exchange carriers (ILECs), both for new builds and overbuilds.

An ODN is a critical point of a multiplexed signal dissimilation between PON subscribers (downstream direction -- from an OLT to ONUs) and concentration (coupling) of signals in the upstream direction (from multiple subscribers to an OLT). In this function, an ODN may play a critical role to affect the PON characteristics, and we are further analyzing such a role together with other issues that are a part of our analysis of the PON technologies and markets.

Scope

Our report addresses a multitude of issues associated with ODN, including technical implementations and marketing perception. Particular, this report intends to answer at least the following questions:

• What is the outlook for the market?
• Who are major market players?
• What are the legal directives and restrictions (if any) shaping the market?
• What standardization bodies are involved and how advanced are they in their work?
• What technologies support ODN implementations?
• What architecture types are being proposed?
• What products are available today?

The report consists of the two major parts and it addresses the following major items:

• Technology
  • Standardization process
  • Trends
  • Requirements
  • Specifics
  • Roadblocks
  • Competitors
  • Architecture
  • Applications
• Market
  • Trends
  • Specifics
  • Modeling
  • Forecast
  • Vendors and their portfolio
  • Service Providers

The significance of this report is difficult to overestimate. The document analyzes a complex of issues associated with the development of ODN as an important part of a PON. We show technological trends and developments of the market and we stress the importance to implement of PON-based services, which characteristics in a great degree depend on ODN parameters.

Reports provide the results of our analysis for ODN technologies and markets. At the present time, only fixed ODN are in use, but programmable and variable ODN are evolving and promise significantly improve PON performance. PLC and FBT technologies are dominating, with PLC in a leading position. The ODN market is on a rise together with the PON market.

Research Methodology

Considerable research was done using the Internet. Information from various Web sites was studied and analyzed. Evaluation of publicly available marketing and technical publications was conducted. Telephone conversations and interviews were held with industry analysts, technical experts and executives. In addition to these interviews and primary research, secondary sources were used to develop a more complete mosaic of the market landscape, including industry and trade publications, conferences and seminars.

The overriding objective throughout the work has been to provide valid and relevant information. This has led to a continual review and update of the information content.

Target Audience

This report is important to a wide population of researches, technical and sales staff involved in the developing of the PON services and products. It is recommended for both service providers and vendors that are working with related technologies. The report also helps to understand issues associated with relationship between PON and other technologies.

TABLE OF CONTENTS

• 1.0 Introduction5
  • 1.1 PON Evolving5
    • 1.1.1 ODN Place6
  • 1.2 Scope6
  • 1.3 Research Methodology7
  • 1.4 Target Audience8
• 2.0 PON Technology9
  • 2.1 The PON Proposition9
  • 2.2 PON Concept and Technologies9
  • 2.3 Standards10
  • 2.4 PON Classification12
• 3.0 ODN Technology and Characteristics15
  • 3.1 General15
    • 3.1.1 Power Splitter15
    • 3.1.2 Groups16
    • 3.1.3 ODN Scenarios17
      • 3.1.3.1 Comparison18
  • 3.2 Technological Processes18
    • 3.2.1 Types19
      • 3.2.1.1 PLC19
        • 3.2.1.1.1 Fabrication19
        • 3.2.1.1.2 Challenges21
        • 3.2.1.1.3 Making PLC22
      • 3.2.1.2 Fused Biconic Tapered (FBT) Fiber23
      • 3.2.1.3 Discrete Micro-Optics24
      • 3.2.1.4 Comparison24
  • 3.3 Directions25
    • 3.3.1 Variable Split Ratio25
    • 3.3.2 Programmable Splitting26
  • 3.4 Characteristics27
  • 3.5 Standardization28
• 4.0 Markets29
  • 4.1 Cost Components29
    • 4.1.1 OSP29
      • 4.1.1.1 Cost Reduction30
      • 4.1.1.2 Design and Cost Efficiency31
      • 4.1.1.3 Drivers32
  • 4.2 PON Market32
    • 4.2.1 General32
    • 4.2.2 Market Forecast32
      • 4.2.2.1 Model Assumptions32
      • 4.2.2.2 Forecast32
        • 4.2.2.2.1 Structure33
        • 4.2.2.2.2 Equipment33
          • 4.2.2.2.2.1 Estimate33
  • 4.3 ODN Market Forecast36
• 5.0 Vendors39
  • ADC39
  • Argiltron (Fused)42
  • AFOP (PLC)43
  • Alcatel44
  • ANDevices (PLC)45
  • AOC Technologies (PLC)46
  • APA Optics46
  • BroadNet (PLC)47
  • JDSU (FBT)49
  • Furukawa (PLC)49
  • Laser2000 (PLC)51
  • Lynx Photonics52
  • Marubeni53
  • NEL53
  • NeoPhotonics (PLC)53
  • Oplink54
  • Opteron (PLC)55
  • Seikoh Giken USA56
  • Skoeinc57
  • Sumitomo Electric Lightwave58
  • SQS (PLC)58
  • Rohm and Haas Electronic Materials (FBT)59
  • Teem Photonics (PLC)60
  • Vitex60
• 6.0 Conclusions62