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DESIGNED FOR EFFICIENCY Fibre is continuously adapting to achieve greater efficiency. Previous generations of PON technologies have derived their origins from long-haul optical technologies. In time, as component volumes increased and pricing began to decline, these technologies were adopted by the metro market, driving volumes and maturation further. Eventually the technology reached a price point that made its use in massive-scale PON deployments viable. In addition to the economic aspects, there optical technologies had to be adapted for the larger power budgets and burst mode operation used in PON. Though it took some time, the trickle- down process worked well, spawning BPON, EPON, GPON and 10G PON technologies. 25G PON is following a somewhat different, highly efficient path. 25G PON technology is not starting from a low volume application like long-haul optics. On the contrary, is comes from the world of data centresS and, specifically, 100G Ethernet technologies based on 25 Gbps channels that are used for intra- data centre connectivity. The increased demand for this capacity, much of it on single-mode fibre, has already driven large volumes and reduced costs on

25G components. This is the mature ecosystem that next generation 25G PON leverages. Additionally, 25G PON plays nicely with currently deployed GPON and XGS- PON, through wavelength selection that enables the co-existence of multiple technologies on a single PON. It is important to ensure that introduction of 25G PON can be done without disturbing current deployments and without any changes in the most valuable part of the network – the outside plant. This was taken into consideration in the 25G PON technology specification created by the 25GS-PON MSA Group, which includes optical specifications based on the IEEE 802.3ca 25G EPON standard, along with a Transmission Convergence layer that is an extension of XGS-PON. THE LONGER PATH The other movement beyond next- generation PON is 50G PON. We recognize its potential, and Nokia is a major contributor to 50G standard work, but we also know the tremendous amount of work still to be done to bring it to market. 50G PON is really a quantum leap. For example, the current technical challenges are so great that 50G/50G symmetrical is not even being considered at this time. 50G will also

require a new generation of lasers, optical amplifiers, and DSPs, and that technology is still in its infancy. We are at least 8-10 years away from a viable commercial 50G PON solution, and that is just too long a wait for broadband operators to step up from 10Gbps. In contrast, 25G PON is based on proven and mature technologies and we expect to see field trials of 25G PON next year. But 50G will come, as will 100G after it, so 25G PON must also ensure a smooth future upgrade path towards them. This is again likely to be facilitated by data centre technology where 50 Gbps-based Ethernet channels for 200 and 400 Gigabit Ethernet are already on their way in. NEXT STEPS PON has a long history of rising to the challenge of insatiable demand for bandwidth. From BPON to XGS-PON, each successive generation has been a catalyst for innovation and increased standards of living as more people have benefitted from better broadband. 25G PON will undoubtedly continue the trend, with additional benefits for fixed and mobile operators seeking convergence and simplification at the same time as improving services and stimulating demand. It is exciting to be involved.


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