VDSL: Future of Wireline Broadband

Telecom operators around the world are including existing twisted-pair loops
in their next-gen broadband access networks. Very-High-Data-Rate Digital
Subscriber Line (VDSL) has the capability to transmit high-speed data over short
reaches on twisted-pair copper telephone lines. The DSL market is beginning a
shift from predominately ADSL deployments, to increasing numbers of VDSL
deployments, mostly in the Asia-Pacific region. There is also a movement towards
having so-called universal ports, which combine ADSL and VDSL functionality on
the same chipset.

Demand for streaming video and video-on-demand services over broadband are
expected to give an impetus to VDSL connections, especially in areas where
operators are planning extensive fiber-to-the-premises (FTTP) rollouts.
According to market research groups, VDSL usage will increase globally in 2005,
reaching nearly seven million broadband subscribers by the year end, a 90
percent increase over 2004.

Growing
demand for video, voice, and data services via broadband is providing a key
opportunity for VDSL to penetrate broadband homes. As last-mile fiber optics-all
the way to the customer premise-is still away, VDSL is a good alternative to
enable high-bandwidth applications.

VDSL represents a distinct bright spot for the industry, with strong growth
in both VDSL IC port shipments and revenue projected through 2008. As per
In-Stat/MDR, this strong growth is driven by the increasing VDSL service
deployments in Korea and Japan, as well as likely future deployments in North
America, current deployments in Canada, and potential future deployments in
support of fiber extension plans.

VDSL had at least five million connections by the end of 2004-mostly in South
Korea, Japan, and China.

Global growth of DSL subscribers in 2004 was 35.5 million, to reach a total
of 96.9 million in 2006.

Fastest growing regions were Middle East and Africa and Latin America, both
at over 100%. At a global level, the growth rate was almost 58%.

European Union countries represent the largest regional DSL population in the
world, followed by Asia Pacific, South and Southeast Asia, and North America.

In terms of technology, VDSL resembles ADSL to a large extent. But VDSL
achieves data rates nearly ten times greater than those on ADSL.

ADSL employs advanced transmission techniques and forward error correction to
realize data rates from 1.5 to 9 Mbps over twisted pair, ranging to 18,00 feet;
VDSL employs the same advanced transmission techniques and forward error
correction to realize data rates from 13 to 55 Mbps over twisted pair, ranging
to 4,500 feet.

VDSL is suitable for a full-service network whereas ADSL may not be a
full-service network technology but has the singular advantage of offering
service over lines that exist today. For services like video conferencing,
Internet access, video on demand, and remote LAN access-which can be delivered
at speeds at or below T1/E1 rates-ADSL/VDSL offer a good combination for network
evolution.

With line lengths shrinking-proximity to a central office or deployment of
fiber based access nodes-ADSL and VDSL offer channels and capacity for services
that require rates above T1/E1.

Minu Sirsalewala