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Belgacom Network Strategy introduction Geert Standaert EVP SDE&W Broadband World Forum


Global network strategy Value enablers for a convergent interconnected world Mobile network

Fixed network

Network simplification

• 3G+ upgrade for superior mobile

• 50-70 Mbps speeds with vectoring

• Leaner operations through network

data experience

• 4G roll out as important enabler of our convergence strategy

& dynamic line management

• Speed acceleration with Fiber-To-The-Home in new zonings

simplification

• Combined with strong product & process simplification


Mobile network 3G+ upgrade for superior mobile data experience Mobile network quality confirmed by study Test Aankoop Test Achat

Experience boost for 3G customers

1• Average speed increased from 3 Mbps to average 6 Mbps

and up-to-20 Mbps peak speeds 2• 70% increase of overall network capacity for data

Strong customer experience driven by

highest 3G indoor coverage and dual carrier penetration

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Mobile network Quickly emerging market need for 4G Users x 2.3 in 1 year

Usage + 60% in 1 year

250

Steep mobile data evolution

200

1• Mobile data usage still in early stages with smartphone 150

100

penetration just above 30% 2• However, steep increase in mobile data usage and users

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Sep-13

Aug-13

Jul-13

Jun-13

May-13

Apr-13

Mar-13

Feb-13

Jan-13

Dec-12

Nov-12

Oct-12

Sep-12

Aug-12

Jul-12

Jun-12

May-12

Apr-12

0

Quickly emerging market need for 4G with much higher mobile

data usage each quarter

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Mobile network 4G as an important enabler of our convergence strategy

Further roll-out of 4G

1• 1 4G further improves mobile speed experience to average

22 Mbps speed with peak speeds up to 54 Mbps 2 2• 4G is deployed in existing 1800Mhz spectrum

44% outdoor population coverage

4G already available in 213 cities throughout Belgium

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Fixed network Speed technology roadmap in coming years Speed evolution in Mbps 2013 to >2018 up-to1000 up-to200 up-to100

download

up-to70 up-to50 30

G.FAST & FIBER EVOLUTION FIBER-TO-THE-HOME IN NEW RESIDENTIAL ZONINGS

VECTORING + DYNAMIC LINE MANAGEMENT FOR VECTORING

VECTORING DYNAMIC LINE MANAGEMENT

VDSL2

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Fixed network Fast track Dynamic Line Management (DLM) 30% higher average speed experience

Fast-track Dynamic Line Management

1• A speed profile is applied to a VDSL2 line in function of the 1

line distance 2• 2 Line characteristics however often allow higher speeds

DLM monitors stability of lines and dynamically applies maximum possible speed when a line is sufficiently stable

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Fixed Network Challenge of cross talk on copper will be beaten by Vectoring Vectoring brings up-to-70 Mbps speeds

One vectored cable Many copper pairs in a cable One copper pair

Powerful vectoring technology

1• 1 Crosstalk is interference between copper pairs in same cable 2• Crosstalk limits the achievable speed on VDSL 2

ForWith a person, only ato More difficult headphone can to onewith person in people ahelp room hear many in reduce surrounding canmaking better lots hearofnoise sound aone room noise Similar Similar to to aaa copper copper cable: cable: Similar to copper cable: Vectoring will eliminate no crosstalk noise with many pairs used, crosstalk noise if with onlynoise 1 pairisasused crosstalk high pair is alone

Vectoring cancels crosstalk in the copper cables resulting in a significant bit rate increase of copper lines


Fixed Network Network modernization steps to enable Vectoring 4 CANCEL

1 HARDWARE CHANGES IN ROP

3 NEW

CROSSTALK IN COPPER CABLES

Bbox 3

Crosstalk

VDSL2 Vectoring Regular enbabled VDSL

GENERATION MODEM TO SUPPORT HIGHER SPEED

2

Bbox BBox 23

ASSURE VECTOR FRIENDLINESS OF EXISTING MODEMS


Fixed network Vectoring pioneer with even higher speeds in pipeline How we will further increase speed soon after

FTTH in new zonings

1• Only operator with an in-house developed technology to

2• FTTH is being piloted in new residential zonings this year,

bring speed at maximum line capabilities

DLM will be applied on top of our Vectored lines to further increase speeds up-to-100 Mbps

with first test-customers now having end-to-end fiber

FTTH in pilots offers speeds of up-to-200 Mbps

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Network simplification Leaner operations through a simplified all-IP-network Network transformation

Network consolidation

Network automation

Physical removal of legacy

Migration of products & services to

Optimization of network architecture

technologies, PSTN switches and

the new IP based network

towards fully automated customer

technical buildings

activation

Lower cost to maintain + higher efficiency to operate + better customer experience with instant servicing


Network simplification Zoom on first network simplification wave Fixed Voice consolidation

Fixed Data consolidation

3.800.000 PSTN equivalent lines to be

250.000 ATM customers to be

migrated to a new platform

migrated to a new platform

• Total customer base of ATM customers on Ethernet based alternatives by 2013 • No more SIEMENS EWSD switches by 2015 (~40% of install base) • No more ALCATEL LUCENT S12 PSTN switches by 2018 (~60% of install base) • 30 buildings freed up by 2020 with an average of 5 buildings/year

Building outphasing

263.000 m² floor space to consolidate

Already 400.000 lines migrated


Network Simplification Vision for a lean future in multiple simplification waves Thorough simplification towards a lean network CORE NETWORK Eliminate technical buildings Outphasing legacy equipment Fully automated customer activation Full fiber to the street cabinet

copper fiber 13


Q&A

Broadband Forum in Amsterdam  

Networkstrategy Belgacom, Pressevent Read more on http://www.belgacom.com/be-en/newsdetail/ND_20131024_4G.page

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