Transcript Star 21 Networks.ppt

The German
Broadband Access Market
Christian Golaszewski, COO
3rd Annual Broadband Wireless World Forum 2001, February 19 - 21, Moscone Center, San Francisco.
1
The German Broadband Access Market
•
•
•
Market opportunities
• BWA
• SMEs
• ASP
Broadband access technologies
• CAGR
• Value proposition
• Performance
• Capex/Costs
• Business Concept
Case Study WLL : STAR 21 NETWORKS
• Network Topology
• PMP- Licenses in Germany
• Base Stations
• Backbone
• Strategic base: Products
• Positioning, Strategy, Success Factos, Vision
3rd Annual Broadband Wireless World Forum 2001, February 19 - 21, Moscone Center, San Francisco.
2
Market opportunities
3rd Annual Broadband Wireless World Forum 2001, February 19 - 21, Moscone Center, San Francisco.
3
European Broadband Access Fundamentals
European broadband access
revenues(1) (US$m)—2004
German broadband access
revenues(1) (US$m)
5,000
5,000
3,975
4,000
3,975
4,000
3,441
CAGR 109%
3,000
3,000
2,553
2,264
2,000
1,000
1,094
852
2,000
710
392
384 374
730
1,000
208
0
0
Source:
Note:
1,552
IDC, 2000
1 Refers to broadband internet access only
3rd Annual Broadband Wireless World Forum 2001, February 19 - 21, Moscone Center, San Francisco.
4
The SME market opportunity
1999 European SME market(1)
2000 German SME market distribution
500
900
497
400
300
200
184
182
150
118
100
0
Number of SMEs (000s)
Number of SMEs (000s)
600
837
600
340
300
214
156
67
59
16
0
Number of employees
Source: IFM, Statistische Jahrbuch, AZ Bertelsmann
Notes:
1 International analysis performed on SMEs with
10–499 employees only
2 SMEs with 5–499 employees
3rd Annual Broadband Wireless World Forum 2001, February 19 - 21, Moscone Center, San Francisco.
5
The ASP market opportunity
The ASP acceptance of SMEs is rising steeply in Germany making it very attractive emerging market
segment
German SME companies willing to purchase ASP
services, 2001 – 2005*
120.000
112.844
CAGR
01-05
154,1%
80.000
Low IT Spenders
Medium IT Spenders
High IT Spenders
54.181
40.000
26.082
8.781
2.706
0
2001
Note:
Source
2002
2003
2004
2005
*SMEs and all their regional subsidiaries
The German ASP Readiness is calculated by dividing German ASP market size by total German IT spending.
Ovum March 2000, AZ Bertelsmann, Gartner Group, Andersen Consulting Analysis, EITO
3rd Annual Broadband Wireless World Forum 2001, February 19 - 21, Moscone Center, San Francisco.
6
Broadband Access Technologies
3rd Annual Broadband Wireless World Forum 2001, February 19 - 21, Moscone Center, San Francisco.
7
Broadband Access Connections
Germany – Broadband Access Connections, 1999-2004
Business Customers
CAGR 2000-2004
140,00%
118,00%
120,00%
105,00%
100,00%
80,00%
74,00%
60,00%
40,00%
20,00%
0,00%
DSL
Cable
FWA
1999
2000
2001
2002
2003
2004
DSL
1k
111k
324k
586k
805k
1015k
Cable
6k
7k
13k
32k
69k
123k
FWA
0k
16k
87k
172k
266k
363k
3rd Annual Broadband Wireless World Forum 2001, February 19 - 21, Moscone Center, San Francisco.
8
Value Proposition
WLL
Fibre
DSL
Medium
(licences and roof-rights)
High
(unbundling)
Medium
(rights-of-way)
Upfront costs
Medium
Medium
High
Capex requirements
Medium
Medium
High
High
Medium
High
30 – 35%
30 – 35%
30 – 35%
High
(2Mbps – 15Mbps)
Medium
(384Kbps – 2Mbps)
High
(>10Mbps)
High
Low
Very high
Regulatory hurdles
Scalability
(marginal costs)
Potential operating
margins
Capacity
Predictability of service
quality
3rd Annual Broadband Wireless World Forum 2001, February 19 - 21, Moscone Center, San Francisco.
9
Capex/Technology Costs
CAPEX/Mbps/Site
Access Technology Costs
$160k
$700
$600
$120k
$500
$100k
$400
$80k
$300
$60k
$200
$40k
$100
$20k
$0
$0
3rdgen. 2nd gen. DSL
BWA
(Free space laser)
PtP
FO
3rdgen. 2nd gen. DSL
BWA
PtP
FO
(Free space laser)
Capex/Mbps
Capex per Site
2nd Generation BWA Fills the Gap Between Fiber and DSL
3rd Annual Broadband Wireless World Forum 2001, February 19 - 21, Moscone Center, San Francisco.
10
Where are we going?
Local Loop Customer Segments
Fibre &
Optical
Wireless
Corporate
LE
PtP
SME
BWA
Radio
SOHO
Consumer
Copper
XDSL
Access
2M
WAN
LAN
8M
10 M
ATM
1 G Speed
100 M
?
Technology
Ethernet
3rd Annual Broadband Wireless World Forum 2001, February 19 - 21, Moscone Center, San Francisco.
11
Case Study PMP-WLL
STAR 21 NETWORKS
The Broadband Solutions Company
3rd Annual Broadband Wireless World Forum 2001, February 19 - 21, Moscone Center, San Francisco.
12
Today’s Service Architecture
Server
PSTN
ISP1
STAR 21 Network
Server
Server
N*E1
SAP
Service
Access
Point
Basestation
ATM Core
IP service platform
ATM
STM1 STM4
IP filter
routing
AAL5 AAL5
ATM ATM
STM4 STM4
IP
AAL5
802.3 ATM
10BT WLL
RFC 1483 (bridged
and routed)
Internet
ATM
802.3
802.3
10BT
ISPN
ATM
WLL STM1
ATM Forum
UNI/NNI PVC
ATM Forum
UNI/NNI PVC
IP Service Termination
UNI/NNI PVC
3rd Annual Broadband Wireless World Forum 2001, February 19 - 21, Moscone Center, San Francisco.
13
PMP-WLL Licenses in Germany
PMP potential:
221 licenses for „Point-to-Multipoint“-radio
throughout Germany:
• 183 licenses for 26 GHz
• 38 licenses for 3,5 GHz
Roof Right Portfolio:
450 locations for base stations
Business potential:
• Coverage of about 60 Million German
• residents and more than 850.000
companies
• Licenses in top urban areas, such as Berlin,
Bremen, Dresden, Dusseldorf, Frankfurt,
Hanover, Leipzig, Magdeburg, Mannheim,
Munich, Nuremberg and Stuttgart
3rd Annual Broadband Wireless World Forum 2001, February 19 - 21, Moscone Center, San Francisco.
14
Base Stations Parameters
Typical base station coverage
Highlights
Radius of 3.5 km at 26GHz, up to 10 km at
3.5GHz
Bandwidth per base station
• up to 384 Mbits downstream
• up to 288 Mbits upstream
Bandwidth per licence
• 14MHz per 3.5GHz licence
• 28MHz per 26GHz licence
(56MHz in 9 key areas)
Up to 144 customers (2 Mbits) per base
station
3rd Annual Broadband Wireless World Forum 2001, February 19 - 21, Moscone Center, San Francisco.
15
Rainy Days Case Study: Frankfurt
Frankfurt base station coverage
Availability of Frankfurt base station
100
BS
(%)
75
CPE
Connectivity
50
SLA-Line
25
0
31-Jul-00
•
STAR 21 NETWORKS offices
•
Plusline (local Frankfurt ISP)
•
Computer Training
•
WebHits
•
Controlware (Customer outside of Frankfurt
connected via PTP radio)
07-Aug-00
14-Aug-00
21-Aug-00
3rd Annual Broadband Wireless World Forum 2001, February 19 - 21, Moscone Center, San Francisco.
28-Aug-00
04-Sep-00
16
Infrastructure: Backbone
Example of a breakout
point
Core Switch,
ADM
n x E1 Switch
Friendly voice
carrier switch
Example of a POP
n x E1 Switch
Core
Switch
Friendly voice
carrier switch
Router
Router
•
•
Highspeed Fiber-Network to supply all
221 license areas with bandwith close
to terabit range
35 Points of Presence (Pops)
IP service
platform
Server Farm
Hosting / ASP
Peering
internet
Router
3rd Annual Broadband Wireless World Forum 2001, February 19 - 21, Moscone Center, San Francisco.
17
Interconnection Set-Up
E1 CES
Backbone:
• ATM: Asynchronous Transfer Mode
• DWDM: Dense Wave Division Multiplexing
• Transfer rate up to the terabit range
PBX
Voice
10BaseT
SAP
Router
PC
E1 CES
STM-1
Voice
STM-1
Backbone
STM-1
STM-4
STM-16
STM-1,
100BaseT
Internet
WLL
Base Station
3rd Annual Broadband Wireless World Forum 2001, February 19 - 21, Moscone Center, San Francisco.
18
Product Roadmap
NetworkProducts
Fixed
bandwidth
Flexible
bandwidth
LAN-to-LAN
connectivity
Frame relay
Applications
Strategy
Network
Service
Provider
IP-based VPN
Voice services
Back-up lines
Voice over IP
LANs-/WANManagement
Soft-PBX
E-Mail
solutions
Webdevelopment
and -hosting
Standard
applications
Database
server
Data back-up
Vertical portals
Vertical
solutions
Video-ondemand
ISP + IT
Service
Provider
Content
ASP
Provider
Day trading
centres
Business TV
Facility
management
Business
Solution
Provider
3rd Annual Broadband Wireless World Forum 2001, February 19 - 21, Moscone Center, San Francisco.
19
Positioning
Company vision:
STAR 21 NETWORKS aims to become one of the leading European
providers of data communication, internet and application services for City
Carriers, Internet Service Providers (ISPs) and SMEs.
Leading edge technology:
„Wireless Local Loop” access and a high-performance fiber backbone serve
as our technical platform to provide dynamic broadband connectivity and
high-value „end-to-end“ services.
Competitive advantage achieved by:
High quality standards, innovative service solutions, short installation times
and low prices.
3rd Annual Broadband Wireless World Forum 2001, February 19 - 21, Moscone Center, San Francisco.
20
Strategy
Market entry as Broadband Access Provider
• Leased Lines and Access Service
• Focus: Wireless Local Loop (WLL ), „Point-to-Multipoint“-radio (PMP)
• Partner and provider for City Carriers, ISPs and cable companies
Developing into a Full Service Provider
• Innovative bundled services for telecommunication and data transfer
• Building a high-speed fiber backbone and continuously increasing the
number of base stations
•Target group: „small and medium enterprises“ (SME)
Positioning as Application Service Provider (ASP)
• Network computing, ERP-modules, office applications
• Building a powerful data center for hosting and for providing application services
• Vertical solutions for specific SME demands
3rd Annual Broadband Wireless World Forum 2001, February 19 - 21, Moscone Center, San Francisco.
21
Our success factors
• Leading edge technology:
High quality end-to-end services conforming to top security standards
• Solution oriented services:
Products and services tailored to individual customer needs and enhanced by
consulting services
• High-value one-stop-shopping:
Innovative bundle of products and IT-services from one supplier
• Dynamic and individual scalable broadband services:
Fast and reliable bandwidth services in Germany and in selected European
regions
• State-of-the-art services:
Providing application services of high customer value to reduce IT-costs and to
increase our customers‘ competitive power
3rd Annual Broadband Wireless World Forum 2001, February 19 - 21, Moscone Center, San Francisco.
22
Our Vision
We improve our customers' competitive position
by delivering the communication and application solutions of the 21st century.
STAR 21 NETWORKS
The Broadband Solutions Company
www.star21networks.de
3rd Annual Broadband Wireless World Forum 2001, February 19 - 21, Moscone Center, San Francisco.
23