FTTR-B Opens New Horizons for Small and Micro Enterprises

Fiber to the room (FTTR) all-optical networking is bringing a second fiber transformation revolution and is experiencing explosive growth in China. The FTTR technology gives operators the confidence to commit to bandwidth guarantees, the tool to fully utilize their installation and maintenance advantages, and the means to develop the small and micro enterprise (SME) market.

Traditionally, over 90% of SMEs build their own networks using equipment purchased from the open market. These networks lack unified standards for design, deployment, and operation and maintenance (O&M), leading to issues like severe bandwidth bottlenecks, poor Wi-Fi coverage, frequent network failures, and difficulties in localizing faults. As a result, they cannot meet the digital transformation needs of enterprises.

As fiber-to-the-enterprise installation inevitably transitions to fiber-in-the-enterprise deployment, ZTE has launched the FTTR to business (FTTR-B) solution to help SMEs build all-optical enterprise networks based on passive optical network (PON) technology. In the solution, the FTTR-B main optical network terminal (ONT) is the core device sitting at the entry to the enterprise network. The main ONT connects to the operator network through an uplink PON port and to several room ONTs via a downlink PON port to form an all-optical local area network (LAN). With its integration of the functions of an access gateway, a router, an access controller (AC), an integrated access device (IAD), and a power over Ethernet (PoE) switch, the main ONT enables all-in-one simplified networking by replacing multiple devices essential to a traditional enterprise network.

In addition, the solution uses fiber as the transmission medium and replaces the traditional P2P copper-based connectivity network with a point to multi point (P2MP) fiber-based optical distribution network (ODN) within the enterprise network. The ODN features compact devices, robust environmental adaptability, resistance to electromagnetic and lightning interference, and no need for equipment maintenance. Compared with cable, fiber has a much longer lifespan of up to 30 years, is much cheaper, and therefore can significantly reduce the overall network construction cost. As shown in Fig. 1, the FTTR-B all-optical network solution can be used to replace the traditional self-built network approach of SMEs. By enabling the construction of an all-optical enterprise network characterized by superfast deployment, ultimate user experiences, and ultra-simplified O&M, the solution can help SMEs with their digital transformation.

FTTR-B Helps Operators Reap Value in Installation, Maintenance and Management Services and Develop Value-Added Services

FTTR-B enhances network connectivity for enterprises, thereby increasing network revenue. By transitioning from a single fiber for enterprise broadband/Internet private lines to an FTTR-B all-optical enterprise network, connections are expanded from a single point to an entire network (Fig. 2). This improvement not only enhances customer stickiness, but also leads to a threefold increase in ARPU and an 80% reduction in network churn rate.

FTTR-B enhances the installation and maintenance service connection for enterprises, leading to increased revenue in the installation and maintenance service sector. The operator can provide maintenance for the FTTR-B enterprise network. This not only enhances customer retention but also allows the operator to increase revenue by offering value-added services. These services include basic maintenance services like speed tests, on-site engineer visits, and analysis reports, as well as advanced maintenance services such as quality analysis and network optimization.

FTTR-B enhances the telecom service connection for enterprises, increasing telecom service revenue. Through the combination of network and cloud service, it enables one-hop cloud access via VxLAN/IPsec. This enhancement facilitates the deployment of value-added services such as video acceleration, office application acceleration, and acceleration for specified users/websites.

FTTR-B Builds an All-Optical Enterprise Network with Upgraded Access Bandwidth, User Experience, and O&M Capability

• Superfast Deployment

The FTTR-B enterprise network features a simplified two-layer P2MP architecture, 32 concurrent connections, various installation methods, and flexible power supply.

—One network to the user side: Fiber replaces copper and extends to the user side, reducing the overall cabling workload.

—One network for integrated service access: One optical network provides both wired and Wi-Fi access to services including data, voice, and video.

—One device with multiple functions: The all-in-one FTTR main ONT integrates the functions of an access gateway, a router, an AC, an IAD, and a PoE switch, simplifying device provisioning and deployment.

—One-network evolution: The all-optical network can be smoothly upgraded to 10G PON and 50G PON without re-cabling, protecting the investments of SMEs.

The FTTR-B solution utilizes power over fiber (PoF) technology to address the challenge of powering networks within SMEs. PoF provides power over a photoelectric composite cable. While the traditional copper cable used in power over Ethernet (PoE) technology can deliver power only over a distance of less than 100 meters, the photoelectric composite cable can supply 15W of power within an 800-meter range. The photoelectric composite cable is easier to deploy and costs less than that of the Category 6 copper cable, making it the best option for an enterprise network. In scenarios requiring power supply over a long distance, the photoelectric composite cable can be used to facilitate the rapid deployment of the FTTR-B network.

• Ultimate User Experience

The FTTR-B network offers 2 Gbps bandwidth through both wired and wireless connections, delivers low latency, and enables flexible capacity expansion and unified authentication.

—The FTTR-B main ONT uses 10-Gigabit-capable symmetric passive optical network (XGS-PON) technology in the uplink, which enables it to deliver bandwidth ranging from 1 Gbps to 10 Gbps to an SME. In the downlink, the ONT employs GPON technology to allow for gigabit-plus access experiences. The ONT is also equipped with a 2.5 Gigabit Ethernet (GE) port to ensure both wired and wireless speeds of over 2000 Mbps, meeting the requirements of various application scenarios such as wired network expansion and intranet server deployment of the enterprise.

—The ceiling-mounted all-optical Wi-Fi 6 AP deliver seamless gigabit Wi-Fi coverage without any dead zones in SMEs.

—The FTTR-B main ONT integrates access controller (AC) functionality to perform centralized control and management of all wireless APs in the network, including configuration delivery, parameter modification, intelligent radio frequency management, and access security control. Integrating the AC functionality into the ONT optimizes resources, enhances data forwarding efficiency, and unifies AP policies and AP management at the ONT to implement flexible network expansion.

—The FTTR-B network has a unified authentication point for both wired and wireless access. Switchover between wired and wireless is imperceptible to users. Wireless roaming handover is superfast without being perceived by users. These features ensure smooth and uninterrupted services and enhance user experiences.

• Ultra Simple O&M

The FTTR-B solution provides one-stop network O&M that covers planning, installation, acceptance, maintenance, and optimization, providing enterprise customers with confidence in the reliability of their networks.

SMEs usually have a limited budget for network O&M and lack a network management platform or dedicated O&M personnel. The FTTR-B solution uses a combination of the SCP and a mobile O&M app to simplify network O&M by making it lightweight and visual.

—The O&M app simplifies installation and maintenance, implements fast service provisioning, and standardizes network installation and acceptance. It offers one-click performance optimization and remote fault localization to reduce OPEX by 30%.

—The solution utilizes AI and big data technology to provide different bandwidths for VIP and regular users, accelerate enterprise applications, and intercept entertainment applications, thus ensuring an efficient enterprise network.

—The solution has unified user authentication policies to identify users and match them with services. It provides portal authentication, allowing both wired and wireless IPs to be identified as natural person users, with authentication policies stored in the cloud. When a user moves to another location, there is no need for re-authentication. This makes it easy for operators to provide targeted advertisements and personalized offerings, fostering connections among operators, equipment vendors, and content service providers to create an industry ecosystem.

As a powerful tool for operators to expand the enterprise market, FTTR-B has huge potential. Statistics show that, by the end of 2022, there were over 52 million enterprises in China, with the FTTR-B market exceeding 2.5 billion yuan. In the Chinese market, tenders for over 160,000 sets of FTTR-B devices were completed in the first half of 2023, and this figure is projected to surpass 2 million by 2026. In international markets, SMEs including hotels, shopping malls, and campuses are experiencing a growing demand for broadband upgrades, and they increasingly need FTTR-B to transform their networks.

By deploying the FTTR-B solution, operators can expand their cloud customer base among SMEs, increase service revenue, and enhance customer stickiness. FTTR-B all-optical networking is poised to help operators tap the blue-ocean market of SMEs as a new avenue for growth.