Data link layer (UNE-based) competition in .NET

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853 Data link layer (UNE-based) competition
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If the FTTH physical plant is amenable to unbundling, competitors can rent the ber as a UNE (unbundled network element) and choose the link layer technology to be used over the physical medium Providers could use ATM, SONET, Ethernet or Analog modulated RF carriers as their data link layer technology Since all users served by the same splitter combiner on a curbside PON (and by the same remote node in an active star architecture) have to be served by the same data link layer technology, a curbside PON physical plant cannot be unbundled, and therefore, this model of competition is not possible in curbside PONs and active star architectures In the case of the home run architecture, this is easy to implement by directly connecting each subscriber s ber to the OLT of the desired data link layer service provider An OFAP architecture, besides having a lower NPV cost than a curbside PON, also enables data link layer competition Aggregation of many splitters at an OFAP does not require all homes served by the same splitter to be in the same neighborhood Splitters at the OFAP can
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22 Indications
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are that not more than 2 3 competitors can be supported using CWDM PON equipment is economical because it does not use very sophisticated lasers This requires suf cient isolation between wavelengths and may limit the number of wavelengths to 3 4 on each PON If each competitor uses two wavelengths one for upstream traf c and one for downstream traf c it will be dif cult to have more than two competitors
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be assigned to different service providers served by different OLTs at the CO, using data link technology of the competitor s choosing The number of competitors is limited by the number of splitters at the OFAP generally 6 8 Aggregating too few splitters not only raises costs but also reduces the potential for data link layer competition Clearly, if there are multiple link layer service providers, some of the savings from deferring investment in OLT ports will be lost; in fact if there are as many service providers as the number of splitters aggregated, all OLT ports will need to be prepositioned This cost of competition depends on the extent to which investment in OLT ports could otherwise be deferred If the take-up rate is high, the impact on costs will be modest
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854 Network (and higher) layer based (open access) competition
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Different Internet service providers (ISPs), telephone service providers and switched digital video providers can use traditional open access to provide data, voice and switched digital video services There are two possible models: 1 The service provider can wholesale transport from the data link layer provider and resell service bundles to the subscriber Each subscriber in this context has only one dedicated ISP This is typical of current DSL and cable open access arrangements [4] 2 The data link layer provider can sell unbundled transport direct to the subscriber The subscriber can make separate agreements with one or more service providers and can select an ISP on demand using switching/routing technology provided by the data link provider [4] This is similar to today s dial-up ISP access model The existence of thousands of ISPs today indicates that the barriers to entry for service providers are considerably less than at the facilities or data link layers Data link layer service providers, can, through vertical integration, leverage economies of scale in facilities or the data link layer to uneconomically limit competition at the services layer
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855 Why UNE-based competition may be preferable to open access-based competition
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Open access based on competitive provisioning of voice, data and video services over a shared transport network is made possible by unbundling the network at the logical layer and the resale of data link layer services In the absence of dark ber unbundling, service providers and subscribers are obliged to rely on the data link technology choice of the facilities/data link monopoly, even if they would have preferred an alternate data link technology, such as ATM versus Gigabit Ethernet In effect, the natural monopoly of the physical layer is extended to the data link layer The absence of competition at the data link layer may limit the pace of data link layer innovation More importantly, voice, video and data service possibilities may be limited by the capabilities of the chosen data link layer For example, if the network owner selected a PON that does not support a video overlay at 1550 nm, service providers are precluded from offering analog broadcast video services
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