x
Ultra-Broadband

Ericsson Scores GPON Wins in China

In yet another sign that China could be a major market for GPON system vendors in the coming years, Ericsson AB (Nasdaq: ERIC) today announced it has landed fiber-to-the-home equipment contracts with the country's three big operators, China Mobile Communications Corp. , China Telecom Corp. Ltd. (NYSE: CHA), and China Unicom Ltd. (NYSE: CHU).

While there is no indication from the vendor or carriers about the size of the deployments, it's clear Ericsson's GPON technology is being given a chance to prove its worth in the field, as it's set to be used for high-speed Internet access and, potentially, high-definition IPTV services, in nine provinces -- Anhui, Guangdong, Hebei, Heilongjiang, Hubei, Liaoning, Shandong, Shanghai, and Sichuan.

Because of customer confidentiality agreements, all Ericsson said it could add to its press release was that some of the deployments are for commercial service rollout and some are trials.

The news follows the recent announcement from Alcatel-Lucent (NYSE: ALU) that China Telecom is trialing its GPON gear in five markets. In addition, Broadcom Corp. (Nasdaq: BRCM) announced in June that it is introducing a new family of GPON access device chips for the Chinese market that will be used in customer premises gateways. (See China Telecom Uses AlcaLu's GPON and Broadcom Adds China GPON.)

But it's not all about GPON in China's broadband market: EPON is still being rolled out, and DSL deployments will continue to expand. (See World's Largest EPON Tender?)

According to a new Pyramid Research report, "Communications Markets in China," the number of active DSL lines in China will grow from 67 million at the end of 2008 to more than 126 million by the end of 2014.

The report's author, Daniel Yu, though, notes that the Chinese government is pushing for greater fiber access penetration, and that, from a low current base, the number of FTTH subscribers (irrespective of the underlying technology) will exceed 50 million by the end of 2014.

Ericsson's GPON challenge
For Ericsson, news of some success, however limited, will be a boost for the GPON business line that has been built around the early 2007 acquisition of Entrisphere. (See Ericsson Buys Entrisphere and GPON Gets a 10G Look.)

At the time Ericsson had hoped the purchase would give it a healthy foot in the door at AT&T Inc. (NYSE: T). That, though, hasn't quite worked out according to plan. (See Is AlcaLu's FiOS Share Slipping?)

Instead, the vendor has had to be content with a number of small engagements in markets such as Armenia, India, and Nigeria. (See Ericsson Wins GPON Deal, Ericsson Does FTTH in India, and Ericsson Wins GPON, IPTV Deal.)

But there's another opportunity in Asia/Pacific that might give the Entrisphere team another boost. Vendor selections are expected to be announced shortly for Singapore's sizeable national high-speed broadband network, and Ericsson's BLM 1500 GPON gear was on display at the recent CommunicAsia event as part of a typical central office deployment for the fiber-access-based project.

While that doesn't mean Ericsson is guaranteed a healthy slice of the action -- the plan is to hook up every home and business on the island state with a 100-Mbit/s connection -- it puts the vendor in pole position to bag a purchase order, alongside the other vendor that had its fiber access gear on display in the mock-up central office cabinet, Huawei Technologies Co. Ltd. (See Singapore Makes FTTH Strides .)

— Ray Le Maistre, International News Editor, Light Reading

Page 1 / 4   >   >>
PONindustry 12/5/2012 | 4:01:29 PM
re: Ericsson Scores GPON Wins in China I do wonder why magazines such as LightReading would spread misinformation based on corporate marketing propaganda. GPON is not deployed in China. GPON is trailed in limited scale deployments by China Mobile, which at the same time is testing EPON as well, with just as many lines and in the same number of provinces.

"While there is no indication from the vendor or carriers about the size of the deployments" - it is quite clear why. Deployments are not planned for the moment so there is no word on them either.

Please research the topic based on information from independent sources before releasing this kind of misleading statements ...
friendodevil 12/5/2012 | 4:01:28 PM
re: Ericsson Scores GPON Wins in China

LightReading are just reporting the facts: China Mobile's commitment to the technology simply follows the worldwide trend of profitable carriers' deployments utilizing GPON. With a solid supply chain and a strong ecosystem, GPON is now ramping as the dominant services and triple play access technology.

clark-peng 12/5/2012 | 4:01:23 PM
re: Ericsson Scores GPON Wins in China China operators use EPON widely.
zman 12/5/2012 | 4:01:22 PM
re: Ericsson Scores GPON Wins in China

 


I agree with the posts here.  Lightreading has always been susceptible to Alcatel, Ericsson, etc PR about gpon, while on the street, epon outsells it 10:1.  


Report on this: http://www.cn-c114.net/583/a41...

PONindustry 12/5/2012 | 4:01:22 PM
re: Ericsson Scores GPON Wins in China

I would like to see that "profitable carriers' deployments utilizing GPON" because lots of money has been invested into GPON and very little recovered from subscribers. Probably only Verizon is making any money at all on GPON but the scale of investments they are making suggest that ROI will take years. Hardly a highly profitable business.


Compare also the supply chain for GPON subsystems - if two companies go bust (certain chip supplier and a certain optics supllier) the " solid supply chain and a strong ecosystem" you mention goes down the drain.


When you compare EPON and GPON equipment costs, the conclusions are more than obvious - this is not a technology for Chinese markets. The fact that is has more bandwidth in downstream than 1G-EPON? 10G-EPON is here and it has 4 times the bandwidth of GPON. Big deal.


In short - more marketing statements with little support from the side of reality. I suggest changing the sources of information and looking closer at what is out there on the market rather than relying on marketing department information.

friendodevil 12/5/2012 | 4:01:21 PM
re: Ericsson Scores GPON Wins in China



<div>Dear EPONindustry,</div>
<div>&nbsp;</div>
<div>The EPON camp&nbsp;now realizing they can no longer compete with GPON is quickly shifting the focus to 10G,&nbsp; your message clearly reveals your true motivation.&nbsp;</div>
<div>&nbsp;</div>
<div>The GPON ecosystem consists of a significantly larger number of silicon, system vendors, etc. Like its predecessor, ITU-T based DSL access has been adopted worldwide, not only in Japan. The EPON camp is finally realizing that operators are consistently choosing service grade ITU-T rather than best effort grade / media converter&nbsp;IEEE based PON for their rich service grade access networks.</div>



ftthexpert 12/5/2012 | 4:01:20 PM
re: Ericsson Scores GPON Wins in China

my dear PONindustry


you were unfortune whit your first post which reveal your name and company. You definitely know that your comany have certain EPON traction in China but you are putting a lot of effort in GPON to gain traction out of China.


Let me&nbsp;update you and the&nbsp;readers with some&nbsp;data points on GPON deployments and its ecosystem:


Deployments


BSNL in india - First tender of 550k FTTH lines was concluded and equipment is being shipped now. They also have 150k EPON FTTH. But the story is next tender which expected to be out in Oct 09. This time it will be only GPON with 1.3M FTTH lines to be shipped during 2010. in 2011 to 2015 they will add 1M FTTH lines each year.


TM in Malaysia - They switched from their early preference of EPON to make a tender for GPON aiming to cover 2M subscribers in few years


Etisalat in United Arab Emirates - deploying GPON agressively , targeting 500k suscribers this year


SK Broadband - Korea - deploying a mixed of FTTH and FTTB+LAN of GPON technologies as they realized it has better ROI per bit.


PT - Portugal - Announced a plan to pass 1M subscribers with GPON this year


Ecosystem


Optic vendors for PON are all having both EPON and GPON products so please do not threat us with suppliers going bust - it will create the same damage to EPON as well


The GPON chip suppliers are much stronger than the EPON ones. look who is joining this camp - BRCM, MRVL and IFX - the 3 biggest comm IC vendors


10G


Who is going to pay for 10G upstream when access traffic is a-symetric. The whole reason for investing in 10G EPON is because the existing GE-PON is running our of steam to support broadcast TV to the Chinese MDU. and as far as i recall, broadcast is one direction traffic.


Who will subsidize the huge technology investment of 10G upstream ? and why ?


&nbsp;

NextGenerationAccess 12/5/2012 | 4:01:20 PM
re: Ericsson Scores GPON Wins in China

&nbsp;You may want to take a look at the article published by Wei Leping, Director, Science &amp; Technology Committee http://www.c114.net/news/16/a416425.html


Some highlights:
1. GPON will surpass EPON in two years
&nbsp;- 2009: GPON in taking off
&nbsp;- 2010: GPON in massive deployment
&nbsp;- 2011: GPON surpassing EPON
&nbsp;- 2013: GPON 3 times over EPON
2. GPON has strong chip vendors support
&nbsp;- 7 vendors vs. 3 vendors
&nbsp;- Scale of GPON vendors is much bigger than that of EPON vendors 3. Major system vendors support
&nbsp;- 9 of top 10 world vendors support GPON
&nbsp;- All 4 EPON vendors are in China
&nbsp;- None of system vendors do EPON alone
4. Leading operators support
&nbsp;- 9 of top 10 operators adopt GPON only
&nbsp;- Only 1 EPON operator: NTT
&nbsp;- Only two operators support both GPON and EPON. They are all in China: China Telecom and China Unicom


China Mobile (largest phone operator in China) is going mass deployment with GPON. GPON is faster and more efficient compared to EPON plus has global traction.

hoopmeister 12/5/2012 | 4:01:20 PM
re: Ericsson Scores GPON Wins in China

I would like to get a little better understanding on Eco-System for GPON industry, in particular with silicon MAC supplier:


- there is clear lacking of GPON OLT MAC merchant silicon suppliers today.


&nbsp;&nbsp; - BRCM is not building GPON OLT MAC


&nbsp;&nbsp; - MRVL's acquisition of IMBAR so far has not yielded any silicon to market


&nbsp;&nbsp; - Never heard of Infineon ever had a GPON silicon to market.


&nbsp;&nbsp; - The most dominant GPON OLT MAC supplier might be Broadlight (I meant from merchant silicon perspective and I will say why in the following points)


&nbsp;


- there is a great concern of Eco-system healthiness in GPON for carriers - the two dominant GPON access equipment vendors all have its own silicon for OLT and one of them has both OLT and ONU. This is really a bad situation for merchant silicon vendors to get decent amount of the already very limited business


&nbsp;


lastly, a word on 10G capacity. Just talked to a carrier friend today, the great subscriber density in Asia market with the focus of MDU based FTTB solution absolutely justifies 10G capacity. A single PON port currently could be shared by hundreds of users at some instances.


&nbsp;


Hoopmeister


&nbsp;

hoopmeister 12/5/2012 | 4:01:20 PM
re: Ericsson Scores GPON Wins in China

I would like to get a little better understanding on Eco-System for GPON industry, in particular with silicon MAC supplier:


- there is clear lacking of GPON OLT MAC merchant silicon suppliers today.


&nbsp;&nbsp; - BRCM is not building GPON OLT MAC


&nbsp;&nbsp; - MRVL's acquisition of IMBAR so far has not yielded any silicon to market


&nbsp;&nbsp; - Never heard of Infineon ever had a GPON silicon to market.


&nbsp;&nbsp; - The most dominant GPON OLT MAC supplier might be Broadlight (I meant from merchant silicon perspective and I will say why in the following points)


&nbsp;


- there is a great concern of Eco-system healthiness in GPON for carriers - the two dominant GPON access equipment vendors all have its own silicon for OLT and one of them has both OLT and ONU. This is really a bad situation for merchant silicon vendors to get decent amount of the already very limited business


&nbsp;


lastly, a word on 10G capacity. Just talked to a carrier friend today, the great subscriber density in Asia market with the focus of MDU based FTTB solution absolutely justifies 10G capacity. A single PON port currently could be shared by hundreds of users at some instances.


&nbsp;


Hoopmeister


&nbsp;

Page 1 / 4   >   >>
HOME
Sign In
SEARCH
CLOSE
MORE
CLOSE