TECHNICAL
Why XGS-PON? An overview of the business opportunities
by NOKIA
The importance of XGS-PON for unlocking business opportunities The adoption of 10Gbps Symmetrical Passive Optical Network (XGS-PON) solutions is accelerating, and the technology has already been widely deployed. For example, Omdia estimates that 67% of PON optical line terminal (OLT) shipments in North America will be XGS-PON in 2023. For operators, XGS-PON is an enabler of improved competitive positioning, increased revenue, and network efficiency. The strategic advantages of XGS-PON apply to all types of operators, whether they are telco or cable operators, incumbent or alternative, retail or wholesale focused, in a developed country or a developing country, or with a residential-only focus or multi- use focus. This white paper provides a concise overview for decision makers of the strategic rationale for XGS-PON deployments.
Figure 1: Global PON OLT port shipments by technology, 2022–28
The momentum behind XGS- PON deployments is growing There is considerable momentum behind 10G symmetrical PON (XGS-PON) deployments across the globe, and Omdia forecasts that XGS-PON OLT port deployments will increase from 2.3 million in 2022 to 13.4 million in 2028. The growth in XGS-PON volumes reflects the fact that the technology is being deployed by a wide range of operators, each with its own specific motivations. For established fibre-to-the-premises (FTTP)
operators, XGS-PON delivers competitive differentiation and opportunities for upsell. For greenfield fibre operators, XGS-PON makes sense because of the small cost differential in comparison with Gigabit Passive Optical Network (GPON) as well as the fact that the active equipment cost is a modest percentage of the cost of the outside plant rollout. In addition, new-entrant greenfield fibre players need to establish and differentiate themselves in the market with the best and latest technology. Governments investing in broadband are also taking a long-term view of the value of FTTP infrastructure, so XGS-PON rollouts, which avoid
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Volume 46 No.2 MAY 2024
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