COPPER-BOTTOMED PLAN - Business VDSL launches herald next generation HD-IPTV services
Throughout Europe, operators are tentatively rolling out VDSL services, proving that there is life left in copper.
VDSL2 networks have been constructed in Finland (Nebula, PHP), Italy (Telecom Italia, Metroweb), Switzerland (Swisscom), Slovenia (T-2) and Denmark (TDC). In Germany, Deutsche Telekom is fighting to prevent its ambitious nationwide VDSL network being opened up to rivals.
Most VDSL services are initially targeted at the corporate market; VDSL is seen as a fast and cheap alternative for VPN access. However, few operators cannot see the potential for a much larger market in delivering rich media services into homes.
VDSL2 can push the bandwidth envelope to a symmetrical 100 mbps over short distances. Combined with fibre pushed out to the curb, hybrid fibre/ VDSL could be the answer to operators’ IPTV quandary.
Most VDSL services are initially targeted at the corporate market; VDSL is seen as a fast and cheap alternative for VPN access. However, few operators cannot see the potential for a much larger market in delivering rich media services into homes.
VDSL2 can push the bandwidth envelope to a symmetrical 100 mbps over short distances. Combined with fibre pushed out to the curb, hybrid fibre/ VDSL could be the answer to operators’ IPTV quandary.
IPTV services offer greater on-demand capabilities than satellite television, and comparable to cable. However, both cable and satellite operators are combining with electronics manufacturers to push high-definition television (HDTV). To deliver HDTV over the local loop, each stream requires 10-15 mbps depending on definition (720p or 1020i) and compression (MPEG2 or MPEG4).
A cable- and satellite-killing service would require multiple on-demand streams, and this would far exceed the capabilities of ADSL2+. The dilemma is whether to hold off on HD until a nationwide fibre to the home (FTTH) network has been built or adopt a hybrid approach where copper and fibre coexist.
“Standard definition TV may provide a stop-gap for the near future, but HDTV will be the future standard, and ADSL2+ won’t cope. If ADSL2+ isn’t enough then operators must look to VDSL2 and fibre,” says Martin Scott, an analyst with Analysys. The research firm estimates that an upgrade to VDSL2 would cost 300–400 Euro per home passed, while FTTH would cost around 1000 Euro per home passed.
“Standard definition TV may provide a stop-gap for the near future, but HDTV will be the future standard, and ADSL2+ won’t cope. If ADSL2+ isn’t enough then operators must look to VDSL2 and fibre,” says Martin Scott, an analyst with Analysys. The research firm estimates that an upgrade to VDSL2 would cost 300–400 Euro per home passed, while FTTH would cost around 1000 Euro per home passed.