F5G-A 10 Gbps Intelligent Access Network: Helping Carriers Unleash New Monetization Potential

The global fiber broadband industry has seen three phases of fiber access network technology. The first phase, which was defined by the "Fiber In, Copper Out" strategy, saw optical fibers replace copper cables to provide 100 Mbps bandwidth for end users. The second phase saw the upgrade from GPON to 10G PON, providing committed gigabit broadband for end users at home. The third phase kicked off with the development of FTTR all-optical home networking, which has allowed carriers to begin exploring a new business model that integrates broadband and networking to continuously improve average revenue per user (ARPU). So far, there are over 350 million gigabit users and over 50 million FTTR users around the world.

AI applications are also rapidly developing, driving the upgrade of fiber broadband networks from gigabit to 10 gigabit, which will ultimately result in the industry's fourth phase of fiber access network technologies. Carriers are now building 10 Gbps intelligent access networks based on 50G PON to provide 10 Gbps fiber broadband with differentiated experience for end users. In August 2024, China Telecom Shanghai launched the world's first 10 Gbps package based on 50G PON, marking the start of the F5G-A 10 gigabit era. To date, more than 100 innovative 50G PON networks have been piloted and commercially used globally. In addition, PON terminals and their applications are being widely deployed.

At the same time, it is predicted that the next decade will be dominated by AI technologies and their applications. Network services will therefore need to shift from "best effort" in the gigabit era to "differentiated experience" in the 10 gigabit era. Such differentiated experiences will be characterized by 10 Gbps bandwidth, millisecond-level latency, and microsecond-level jitter. Global carriers are seizing the opportunities presented by AI to increase broadband revenue by building premium broadband networks and exploring new avenues of monetization based on coverage, bandwidth, and experience. Carriers are also racing to corner the home AI entry point market, which will allow them to transform from traditional ICT service providers into AI service providers.

Coverage monetization: Fast, low-cost network construction accelerates "Fiber In, Copper Out"

Fiber is crucial for fixed networks. A one-off investment into fiber can bring in 30 years of returns. Today, there are still 340 million copper network users worldwide, the optical fiber broadband penetration rate outside China is only about 30%, and globally 70% of service areas are still not covered by optical fibers. Global carriers all agree on the value of optical fiber reconstruction, but this is time-consuming and expensive. Some projects can even have a return on investment (ROI) cycle of over five years.

To tackle these challenges, Huawei has launched all-scenario AirPON and DQ-ODN solutions to simplify OLT and ODN deployment. Our all-scenario AirPON solution can be used at rooftop sites, pole sites, tower sites, outdoor cabinets, and more. In addition, Huawei's innovative DQ-ODN Pre-connection solution eliminates the need for fiber splicing, reducing deployment costs by over 10% and improving deployment efficiency by over 30%. For example, one carrier in Kenya uses the AirPON + DQ-ODN solutions to roll out a network for a whole building in just one week, while keeping construction costs under US$100 per household.

Huawei also launched the Easy OLT solution specifically to simplify copper-to-fiber transition, as it supports aerial mounting. Our Nano OLT + EDFA convergence solution can additionally address compatibility issues with CATV services on live networks, and reduce reconstruction costs. This solution carries data and CATV services over the FTTH network in a unified manner. In addition, Huawei uses RF ONTs to reuse original STBs from the copper cable network, greatly reducing reconstruction costs.

The digital management of fibers as dumb resources has always been a technical challenge for carriers, but our unique Huawei Fiber Iris solution simplifies this by marking each optical fiber with its own micrometer-level QR code. This technology not only allows for the visualized management of fiber resources, but also be used to diagnose fiber faults with meter-level precision, shortening fault locating time from 4 hours to 7 minutes.

Bandwidth monetization: Gigabit acceleration promotes differentiated operations

There are more than 350 million gigabit broadband users worldwide. Upgrading bandwidth to gigabit has become the main method of bandwidth monetization for carriers. Gigabit broadband benefits carriers in three ways: First, gigabit packages can attract more high-value users, which improves ARPU. Second, gigabit broadband allows for the differentiation of broadband service operations, which improves service monetization for specific scenarios like SOHO, livestreaming, and gaming. Third, by combining gigabit broadband and 5G into fixed-mobile convergence (FMC) packages, carriers are better equipped to consolidate their positions in the 5G market, as such packages help them improve user loyalty (using fixed and mobile services provided by the same carrier) and reduce churn.

However, there are two major challenges with bandwidth monetization. First, in some markets, although carriers have provisioned optical broadband services, their package rate is only a few dozen megabits per second. As a result, high-value users instead choose to subscribe to Starlink or a 5G FWA service that provides 100 Mbps bandwidth. Carriers need to fully utilize their high-bandwidth optical fibers in order to upgrade their broadband packages. FTTH has the ability to provide better broadband services for users as soon as they need more than 100 Mbps. Moreover, the upgrade from 100 Mbps packages to gigabit packages delivers a high return without additional investment.

The second challenge with bandwidth monetization is that some carriers use GPON to provide gigabit services, resulting in a poor broadband experience with problems such as high video lag. According to the live network data of one carrier in Jiangsu, GPON can only support concurrent gigabit access for 5 users, while 10G PON can support concurrent gigabit access for up to 32 users. 10G PON also provides smoother video experience – something users want badly – making the upgrade from GPON to 10G PON to provide true gigabit broadband services necessary. These network upgrade costs are also controllable, because ODNs can be fully reused and thus only OLT boards and ONTs need to be upgraded.

Experience monetization: FTTR can be multifunctional

FTTR is to home networks just like what 5G smartphones are to mobile communications. FTTR can support easy-to-manage and easy-to-maintain carrier-grade Wi-Fi networking while providing users with true deterministic gigabit experience. It can also be used to develop AI service hubs for future smart homes. FTTR is currently booming, and already has 50 million users around the world. The industry has also reached a consensus on the evolution from FTTH (deploying one fiber) to FTTR (providing one network) and then to FTTR + X (enabling smart homes).

60% of home broadband problems are caused by poor Wi-Fi, and traditional Wi-Fi routers are limited by network cable quality and signal attenuation through walls. 80% of users receive substandard Wi-Fi that delivers a tested speed of less than 1,000 Mbps. With FTTR, fibers are directly routed to individual rooms to provide higher-quality Wi-Fi networks. This is currently the only networking solution that can provide a tested speed of over 1,000 Mbps, ensuring multi-gigabit Wi-Fi anytime, anywhere. Carriers can also provide true gigabit home broadband through FTTR, and the solution improves not only brand value and competitiveness, but also user satisfaction and ARPU. For example, one carrier in Thailand has increased their ARPU by over 20%, and achieved a user satisfaction rate of 100% through large-scale FTTR deployment.

In addition, FTTR + X is the only feasible strategic anchor for a smart home business as it allows carriers to develop whole-house intelligence and smart home services. For example, in 2024, one carrier in Hebei released a package combining FTTR and all-optical storage to build a smart home data center. With this package, security and sensor data is automatically stored on all-optical storage with the iFTTR OptiXstar F50, allowing data to be more efficiently and securely stored and further improving user loyalty.

Huawei is currently working to upgrade our existing FTTR solution both horizontally and vertically. Horizontally, we are working to improve the optical + Wi-Fi 7 architecture to meet the package requirements of different users and cover more broadband users. With Wi-Fi 7 and AI anti-interference, the tested speed of such upgrades in concurrent access scenarios can reach 5 Gbps, which will enable carriers to consolidate their all-optical foundation.

Vertically, FTTR can be used to combine five capabilities (sensing, storage, algorithms, control, and interactions), so Huawei is working on enhancing its "1 + 5 + X" offerings. "1 + 5 + X" refers to combining FTTR with the 5 capabilities to create smart home services, such as AI + Storage, AI + 3D video, AI + Healthcare, and AI + Home security. Home services can collaborate with these applications to form an upgraded AI service hub for smart homes.

The global development of FTTR shows there are generally five key steps in ramping up FTTR. First, FTTR is promoted to be a strategic top leadership project for a carrier. Second, the FTTR user base is grown using flexible development methods, such as FTTR Ready (replacing traditional ONTs with main FTTR units for early user capture), FTTR Mesh (using Wi-Fi mesh networking to bridge main and sub FTTR units without fiber deployment), and FTTR Fiber (connecting main and sub FTTR units with fibers to provide multi-gigabit Wi-Fi to rooms). Third, FTTR packages are made mainstream packages that are more attractive than mesh networking packages by providing convergent rights such as video services and 5G traffic at prices that are at most only 20% higher than equivalent packages. Fourth, FTTR is promoted broadly through multiple channels, including customer service centers, communities, door-to-door promotion, and online digital marketing. Fifth, innovative, self-bonding transparent fibers can be used to support self-installation by users, reducing deployment costs and reducing per-room installation time from 30 to 15 minutes.

For example, one French Internet service provider has positioned FTTR as its next-generation ONT, and upgraded its ONTs according to an "FTTR for All" strategy. In Phase 1 of the strategy, the provider deployed main FTTR units, over which they provided only broadband services. In Phase 2, they began offering FTTR mesh networking or providing a door-to-door fiber deployment service for users with higher bandwidth requirements. These measures have continuously increased their revenue. The service provider acquired 20,000 users within only six months, increasing revenue by more than 10%. In another example, a Thai carrier decided to make FTTR the "5G" of home broadband, and designed an FTTR + IPTV + 5G converged package that users could purchase at only an up to 20% premium. In addition, the carrier improved their marketing through customer service centers, door-to-door promotion, and digital marketing. As a result, their FTTR user base increased fivefold within a month.

New monetization: AI applications drive the 10 gigabit upgrade and create new opportunities with AI services

There are five key dimensions for innovative AI applications: storage, computing, vision, sensing, and interaction. Technological innovation from these five dimensions is critical to improving the performance and user experience of AI applications. Right now, AI applications are evolving towards localized experience (for example, with lower latencies on the user side), ultra-HD 3D displays, smoother interaction services, and integrated sensing and communications. These innovations generally cannot run on only 1 Gbps bandwidth from "best-effort" networks. Instead, they need 10 Gbps bandwidth, differentiated experience capabilities, and computing power that leverages device-cloud synergies rather than relying solely on cloud computing. This is how AI is driving optical broadband networks to evolve to F5G-A 10 Gbps access networks.

10 Gbps bandwidth will help carriers build the foundation of computing power and intelligence necessary to support AI. That foundation will ultimately define the success of their brand, market presence, and value. As gigabit broadband penetration rates gradually increase, broadband homogenization and low-price competition will intensify, leading to slow growth in high-end users. Therefore, carriers need to launch differentiated 10 Gbps packages early to meet the needs of high-end users and prevent user churn or package downgrade. Additionally, the introduction of 50G PON technology will unlock multi-dimensional monetization (with two of those dimensions being 10 Gbps bandwidth and differentiated experience). For example, one carrier in Yunnan already provides differentiated experience for livestreaming services thanks to a 10 Gbps upgrade.

10 Gbps broadband can be integrated with intelligent applications to create innovative AI services based on network-cloud synergy while also increasing ARPU. For example, a carrier in Shanghai has been attracting high-end users by offering differentiated services like 10 Gbps cloud NAS, 3D livestreaming, AI-enhanced fitness, and 3D optical sensing for healthcare.

When upgrading their networks to 10 Gbps, carriers will need to make full use of existing devices to meet the next decade's network evolution requirements and reduce network construction costs. To this end, Huawei has developed a 10 Gbps intelligent access network solution based on 50G PON, which supports the coexistence and evolution of GPON, 10G PON, and 50G PON technologies. The 16-port highest-density 50G PON solution can be used to realize compatibility with all ODNs on the live network, and support a 32 dB optical power budget, meaning no ODN changes are needed during a 10 Gbps broadband upgrade.

In terms of experience improvement, Huawei uses E2E intelligent hard slicing pipe technology to distribute AI services to high-quality bearer networks. This technology provides deterministic 10 Gbps bandwidth, 1 ms latency, and microsecond-level jitter, transforming the offerings from "best-effort" to differentiated services. The high-performance computing engine of our OLTs supports the integration of computing and networking, and helps carriers provide experience evaluation, potential-user identification, poor-QoE analysis, and experience optimization for 10 Gbps services. This technology additionally achieves a 10-fold increase in O&M efficiency.

Huawei is looking forward to working with carriers and industry partners to build AI-native F5G-A 10 Gbps intelligent access networks. Together, we can explore new business models, create new AI entry points for homes and enterprises, and share opportunities in this transformative era.