22188 - SCTE Broadband - May2024

TECHNICAL

overbuild, XGS-PON could be an important differentiator and could drive home the performance advantage of FTTP over cable and fixed wireless access (FWA). XGS-PON allows operators to easily provide symmetrical gigabit and multigigabit access, which will become increasingly important as more and more subscribers take such speeds. As Figure 2 demonstrates, by 2027 32% of global consumer broadband subscriptions will be for speeds of 1Gbps and above. n XGS-PON also provides operators with notable opportunities to increase revenue. This could be from the premium consumer segment or from the wholesale segment. Furthermore, XGS-PON could increase revenue from the enterprise and mobile transport segments. n Finally, XGS-PON provides operators with the benefits of network efficiency. It provides huge headroom for operators to keep upgrading user services without having to change network and home equipment while also providing improved energy efficiency over earlier PON technologies. The fact the same XGS- PON network can be used for multiple applications also provides efficiency benefits. Differentiating against competitors with XGS-PON In many markets, both developed and developing, FTTP overbuild is increasing. In this context it will be important for operators to offer the highest speeds over FTTP and invest in XGS-PON rollouts in order to maintain premium market positioning. It makes little sense for an operator to invest in an FTTP rollout with the rationale of providing the best-quality network and then be usurped by an FTTP competitor that is offering higher speeds. Multigigabit access delivered via XGS-PON FTTP is also a significant differentiator against alternative broadband infrastructures such as cable and FWA. For example, DOCSIS 3.1 cannot compete against XGS-PON in terms of the ability to support symmetrical multigigabit speeds. DOCSIS 4.0 can support symmetrical multigigabit speeds, but both Extended Spectrum DOCSIS 4.0 and Full Duplex DOCSIS 4.0 require extensive network modifications and investment.

the need for a new investment cycle anytime soon, fit well within this overall idea. Wholesale-only operators are also attracted to XGS-PON since it provides them with the best opportunity to attract retail internet service providers (ISPs) to their network. Finally, cable operators are seeing the benefits of XGS-PON, for instance, as a cost-effective and high- performance upgrade to existing DOCSIS networks.

There are broadly three reasons for operators to deploy XGS-PON:

n In the first instance, competition is an important driver. In areas of fibre

Figure 2: Global consumer fixed broadband subscriptions by speed, 2020–27

Figure 3: Maximum download and upload speed by technology, US Tier 1 operator consumer broadband tariffs, June 2023

May 2024 Volume 46 No.2

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