2. 2012 FTTH Conference & Expo: The Future Is Now – Dallas, Texas
Strategizing Future-Proof FTTH Business
Models – Innovative Approach
Primary Speaker: Kiran Kumar Solipuram,
Presales Consultant & Project Manager – Telco
Co-speaker: Kevin Challen, Global Head – Telco
Infotech Enterprises
kiran.solipuram@infotech-enterprises.com
kevin.challen@infotech-enterprises.com
Kiran Solipuram (+91-9966235070)
Kevin Challen (+44 7976 745 307)
www.infotech-enterprises.com
Table of Contents
Introduction 2
Abstract 3
Full Paper 4
Strategizing Future-Proof FTTH Business Models – Innovation Approach /
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Abstract
Most broadband access networks are still relying on either twisted pair copper wires
(xDSL) or coaxial cables (HFC) which are not meeting the ever increasing bandwidth
demands. Recent adoption of Fiber-To-The-X (FTTx) technologies by Telecom and
Cable operators demonstrate delivering high-speed ultra-fast broadband to meet the
requirement of next-generation multi-play video applications. Optical fiber networks are
offering much higher bandwidths than the old technologies by supporting numerous
services simultaneously in the last-mile. The FTTx networks are classified in many
varieties depending on the last-mile termination point and reach of the Fiber-to-the
Home (FTTh), Premises (FTTp), Cabinet (FTTc) and Node (FTTn). FTTx contains
different technologies including Passive Optical Network (PON), Ethernet Point-To-Point
and hybrid models of centralized and distributed PONs.
On the other hand, the wireless market is quickly evolving with the introduction of the
Long Term Evolution (LTE) technology. LTE and 4G networks, combining with FTTx, are
rapidly changing the game show enabling operators to meet traffic demands. The
capability of extending the Fiber-To-The-Cell Towers (FTTct) within access networks, in
the form of FTTct by leveraging the Gigabit & WDM-PON based resilient architectures,
are filling the higher bandwidth rate gaps for mobile based applications and seamless
multimedia experience. All the evaluating technical and challenging financial trends are
putting a lot of pressure on telecom operators to choose the right business model. The
operator’s main challenge is whether to go for Greenfield deployments, utilize the
existing infrastructure in Brownfields or go with complete refurbishment networks in
Metro cities and suburban areas.
To address the challenges mentioned above as well as strategize the next-generation
FTTx business models by keeping the view of increasing demand for mobile broadband
users, this paper will discuss both Point-to-Point and Point-to-Multipoint (PON)
architectures; in addition to, explaining how to integrate the LTE and FTTx by detailing
the methodological approaches. The key highlight of this paper is to provide innovative
business models by using the proven spatial technologies. Two case studies will be
discussed both FTTp and LTE by illustrating the flexibility and scalability to support both
residential and business users. A complete range of parameters will be taken into
account including strategic, demographical data, regulatory requirements, budgets for
pricing, high-level and detailed engineering for resilient network architectures,
deployment methods, testing and integration with Operational Support Systems. A
particular focus is given to non-price considerations, which come to the forefront, due to
the unique strategic and technological characteristics of optical fiber in the last-mile. This
presentation will identify a superlative FTTx business model to meet the bandwidth
demands of fixed and mobile broadband applications.
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Full Paper
Introduction
The demand for broadband is increasing rapidly due to the end-user requirements
changing from triple-play to quad-play and then quad-play to multi-play. The bandwidth
consumption is enormous to access these kinds of services; therefore, the information
transport must be based on optical fiber technology in order to handle the traffic volume.
Telco operators are deploying fiber based networks especially in access networks
capable in providing the promised services as well as meeting the demand of Next
Generation Networks (NGN). The last mile fiber networks come in many varieties
depending on the termination point: Premise (FTTp), Home (FTTh), Curb / Cabinet
(FTTc), Node (FTTn) or Cell Site (FTTcs). For simplicity, most people have begun to
refer to the network as FTTx, in which x stands for the termination point. Over the past
decade many Telco operators began to replace their copper wire lines with a fiber optic
network to meet their bandwidth requirements. With increasing demand for more
sophisticated data services, Telco’s are gradually moving to fiber backhaul LTE
networks. An advantage of LTE networks is that it provides nomadic services to the end
user wherever, whenever and however.
Long Term Evolution (LTE) / 4G
Introduction of LTE / 4G networks are changing the way of mobile user’s experience and
evolving to offer high-speed mobile applications including real-time digital video
streaming and high-definition multimedia applications over Smartphones, iPADs and
notebooks. LTE technologies are presenting opportunities to increase revenues;
however, require increased network investments in the backhaul to handle the traffic
explosion. The additional requirement of 4G bandwidths is required to build high-
capacity mobile backhaul/backbone networks including the upgrade of existing
traditional networks such as TDM, Frame Relay and ATM circuits. Also, 4G networks
created the necessity for the operators to extend their backhaul from cell site to cell site
and high capacity multiple cell sites to Mobile Switch Office (MSO) to utilize advanced
technology of Carrier Ethernet (CE) capability enabling bandwidth demands to be met. It
has been identified that, optical fiber based backhaul networks with CE technology are
capable of serving millions of mobile subscribers which provides common, reliable and
secure transport architecture for current and future needs. Ethernet, over FTTx with
multiple options of active fiber direct run to cell sites as well as Gigabit based PON
fibers, are gaining more technology advantages. The trend now involves operators
choosing IP/Ethernet backhaul as their main technologies to cut down their cost and
effectively scale their transport networks in support of LTE. Mobile networks are evolving
by leveraging the FTTx capabilities in the last mile to enable LTE / 4G services.
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Carrier Ethernet (CE)
CE defines the use of Ethernet frames as a transport facility, enabling such frames to
transport IP packets or even Asynchronous Transfer Mode (ATM) cells. Because
Ethernet is scalable, in particular,
the 10-G Ethernet is more
capable to scale the higher data
rates. Fiber backhaul Ethernet is
becoming the main source, with
advantages of packet
transmission, in building the
efficient and easily managed
Metro Ethernet Networks which
are supporting the huge traffic of
LTE / 4G networks. In this
application, the backhaul
transport provider can take advantage of legacy wire equipment with integrated Ethernet
switching and Operations, Administration and Management (OAM) capabilities for both
Ethernet and T1/E1 service operators.
CE has become a powerful tool for service providers to employ Metro Ethernet
connectivity, providing reliable transport that is cost effective and operationally efficient.
CE provides a service diagnostic which is well known and a relatively simple solution for
mobile backhaul. Together, CE and Ethernet service products enable service providers
to extract new levels of
efficiency from their mobile
service network. CE, as a
service provider’s transport
facility and an Ethernet service,
can be based upon virtually
any transport technology such
as Ethernet over SONET,
IP/MPLS and so on. A specific CE service type that actually represents a topology can
also be transported as a native Ethernet or carried by another transport facility.
FTTx for Mobile Backhaul Ethernet Networks (MBEN)
Fiber backhaul for mobile towers with the capability of CE is a dominant cost-effective
and high capacity service which offloads the high-data traffic from base stations to
Mobile Switching Center (MSCs).
Wireless carriers are turning to
optical backhaul strategies
especially in access networks with
the capability of FTTx for simplified
high-capacity infrastructure that
brings significant operational value.
One of the leading technologies for
achieving advantages in LTE
network is packet-optical convergence by mixing the Dense Wavelength Division
Multiplexing (DWDM) / Optical Transport Networking (OTN) alongside Reconfigurable
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Optical Add-drop Multiplexer (ROADM). These capabilities enable the LTE operators to
migrate from traditional SONET / SDH to the next generation carrier Ethernet under a
single platform, and managed by a single, multi-layered, network management system.
This integration allows a carrier or service provider to seamlessly provide any service, to
any customer, at varying capacity - all under a single platform and infrastructure.
Some carriers are already seeing revenue ramp up from these efforts, while some are
just signing long-term contracts for future return. Keeping this in mind, the mobile
backhaul networks must be planned and designed correctly in order to provide reliable,
future-proof and cost-effective high capacity transport.
FTTx Deployment Challenges for LTE
When deploying an LTE architecture or
upgrading the legacy TDM mobile backhaul
by extending FTTx networks, the telecom
operators have many things to consider which
include the existing outside plant, architectural
plans, network locations, technology
compatibility, cost of deploying the network,
subscriber density and return on investment.
Various technologies including Active Star
Ethernet (ASE), Metro Ethernet (MEN) and
Gigabit Passive Optical Network (GPON),
which are extended to cell towers, are the
considerable choices for LTE / 4G networks.
Another major impact on carrier networks,
worldwide, is the continuing needed to meet
regulatory interconnect and unbundling points
for fair access by competitive providers.
While gaining the advantages from LTE with the mix of FTTx technologies, Telco
operators have to consider eliminating the challenges below:
CE technology is exposing a major challenge in mobile backhaul as much
infrastructure around the world was deployed in legacy leased lines and Time
Division Multiplexing (TDM) architecture. Now, the operators have to either make
smooth upgrades while serving the customers or swap with CE infrastructure.
Whether to go for Greenfield deployments utilize the existing infrastructure in
Brownfields or go with complete refurbishment networks in Metro cities and
suburban areas.
One of the most challenging issues is how to handle the rapid transition to an all-
packet NGN network while maintaining the existing subscribers who are on legacy
TDM and E1 / T1 circuits.
Telecom service providers, operations and network support systems and
processes, solution providers and contractors will have to work together in a
coordinated way to deliver content smoothly and symmetrically while extending the
fiber based networks (FTTx) to the 4G networks which looks like an impossible
task.
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Extending the FTTx networks to the cell site switches along with utilizing the
Gigabit PON capabilities while maintaining the need for increased capacity,
scalability and reliability.
A key question is how to structure the network in an optimal way to gain from the
advantages of using the latest technologies and innovating optical
communications.
FTTx Deployment Scenarios for LTE Networks
Although fiber based Ethernet over SONET/SDH (EoS) are still considerable choices,
there are two main fiber backhaul technologies that are inspiring the LTE networks for
low cost deployments and greater revenues which are ASE and GPONs. This paper
focuses on the ASE and GPON technologies, its deployment scenarios and optimization
process for network planning and design by leveraging the spatial based systems and
engineering tools.
Active Ethernet
Active Ethernet for LTE is the evaluating architecture in where the fiber plays a major
role in forming the network to provide the CE capabilities in the backhaul networks. In an
active Ethernet architecture,
multiple LTE towers share
dedicated fibers to form the
carrier capabilities from the
Optical Transport Switch
(OTS). Environmentally
hardened optical Ethernet
electronics, switches or
Optical Transport Carriers
(OTC) are installed at the
remote node to provide fiber
access aggregation. The
remote node can be shared
between multiple LTE towers
or simply can be terminated at other switching locations which provides full bi-directional
data traffic. This architecture is most suitable for high-dense areas where more LTE
towers are required to be deployed. Active Ethernet reduces the amount of fiber
deployed while lowering costs through the sharing of fiber in aggregation and core
networks. It is a readily accepted architecture which upgrades the traditional mobile
towers to LTE towers and increase capacity to handle the traffic. It also offers the
benefits of the standard optical Ethernet technology which presents much simpler
network topologies and supports a wide range of LTE solutions. Most importantly, it
provides broad flexibility for future growth. Active fiber deployments are an excellent
choice for service providers when the customer is in an on-net building in a dense
metropolitan area or in a new infrastructure build-out.
Gigabit Passive Optical Network (GPON)
GPON is currently one of the fastest access technologies to attract market interest.
GPON’s popularity is due to several factors including the support for wide range of
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protocols, applications and services. GPON is flexible for various network architecture
deployments, for example, in combination with Very-high speed Digital Subscriber Line 2
(VDSL2, with fiber to the curb, FTTC), as residential access (fiber to the home, FTTH) or
a carrier Ethernet based LTE network. A GPON solution is an integral part of a full
service broadband architecture,
which is designed to meet the needs
of fixed–mobile convergence and
NGN across residential and
enterprise service offerings. The
GPON evolution and standardization
offers many new capabilities that will
support broadband access networks
and services for the future. GPON
supports 2.5 Gbps downstream and
1.25 upstream for each channel
alongside supporting the LTE services. Many operators and vendors in the industry view
Wavelength Division Multiplexed PON (WDM-PON) as the ultimate long-term PON
technology, where a PON topology supports a logical point-to-point network which is
more beneficial for LTE services. WDM-PON offers an alternative to the GPON time-
shared transmission scheme in which each Optical Network Terminal (ONT) transmits
and receives on a specific wavelength.
GPON is flexible and economical solution with carrier Ethernet extended capability which
can be deployed for variety of LTE architectures with various network scenarios which
are described below.
Scenario #1 – Centralized PON for LTE Services: This scenario describes the best
deployment method for GPON extending to the LTE towers. This planning scenario
is most economical for connecting the LTE towers with fiber backhaul in Greenfield
situations. The carrier Ethernet gets extended to the designated LTE tower with the
optical fiber cable from the nearest L2 Metro OTN Switch. An Optical Line Terminal
(OLT) can be installed at the LTE tower which is connected from the backhaul OTN
switch. Further, the OLT can connect to the centralized optical splitter which
eliminates the need of power suppliers. The split ratio can be 1:16, 1:32 or two
1:16 based on the operator’s requirement. This centralized L1 splitter can be
connected directly to SDUs and (Multi-dwelling Units) MDUs. In turn, L2 splitters
can be installed near each MDU to simplify further cable distribution in MDUs.
Figure 1: Centralized GPON Scenario
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The LTE tower can be connected with dedicated PON ports, as per the bandwidth
requirements, which can be upgraded. The entire carrier Ethernet services can be
configured by converting the optical signals to the Ethernet signals enabling the
LTE services for a particular LTE tower. This deployment methodology is easy and
good for high-dense areas. On the other hand, the traditional T1/E1/TDM services
can be upgraded without adding the additional equipment costs with this
architecture. This architecture saves the fiber deployment cost by reducing the
fiber split which can decrease sharing and free up bandwidth for high-bandwidth
users and base LTE nodes.
Scenario #2 – Distributed PON for LTE Services: This deployment scenario is quite
similar to scenario # 1 except the last-mile network deployment methodologies.
This is a distributed GPON from the LTE node which helps the longer distance
premises including MDUs. For a better understanding, all the last mile connections
are shown with MDUs in the diagram below. This scenario uses the mixed
architectures of P2P and P2MPs with the carrier Ethernet capabilities. OLT of the
LTE node can be connected to a L1 optical splitter with dedicated fibers in turn; L2
optical splitters can be terminated at the L1 splitter ports. Bandwidth can be
managed either at the LTE node or L2 metro OTN switch.
Figure 2: Distributed GPON Scenario
Similar to scenario # 1, this architecture is capable of delivering the entire carrier
Ethernet services to the LTE subscribers over the GPON backhaul network. This is
one of the economical architecture for connecting the larger distance MDUs.
Assuming a high video service take-rate and a worst-case scenario where every
residential subscriber is simultaneously streaming multiple and unique high-
definition video channels at about 10 Mb/s each. A rough calculation shows that
about half of the downstream bandwidth is still available for multiple LTE base
stations on the same PON. In the future, next-generation 10G PON interfaces will
be provided, even on fatter pipes, with the same fiber network by using a
wavelength overlay technique. Consequently, from a bandwidth perspective, this
scenario represents a strategic long-term solution for 3G to LTE / 4G migration.
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TDM, E1/T1 Migrations to Ethernet
The key objective of the legacy migration to IP/Ethernet is to meet the new services and
handle the huge mobile traffic over LTE nodes. The migration solution should meet the
requirements of geographical conditions, regulatory environments and competitive
market dynamics. For example, North American backhauls are dominated by leased
lines (T1) which are wired solutions while the Asia Pacific (APAC) region follows to build
the new microwave towers in Brownfield situations. In addition to the above two GPON
based LTE scenarios, let’s see how IP/Ethernet supports the migration of legacy TDM,
E1 / T1 mobile backhauls.
Migration Scenario # 1
This scenario recommends introducing IP/Ethernet enabled devices at the base stations
which will enable to transport all the traffic onto a packet switched network. Thus,
Ethernet can support huge IP traffic (IP packet frames) by building the capabilities of
multicasting for next generation video services. This scenario brings huge technical
benefits by multiplexing various services over an IP network while reducing the
operational costs. All Pseudo-Wire technologies are best suitable for this migration
scenario.
Migration Scenario # 2
This scenario recommends introducing the fiber media in mobile backhauls along with
upgrading the end-to-end devices with IP/Ethernet. This migration scenario involves
extra efforts while, migrating the entire backhaul and sometimes, the existing services
may get disturbed. All these things require special planning and migration tools
alongside unique approach. This scenario enables the full multicast services and
enables to provide all the LTE services.
Note: These scenarios may be detailed based on the specific needs going forward.
FTTx – LTE Planning and Design Cycle
The common planning and design cycles are not sufficient to deploy the networks
mentioned above as the deployment challenges are unique while migrating the
traditional TDM, E1/T1 services or constructing a Greenfield LTE networks. Below
describes a unique approach to address the needs of LTE with a mix of FTTx (GPON)
network deployments by using the geospatial based automated engineering tools. This
design methodology, based on industry best practice, defines the end-to-end processes
ranging from collecting the geospatial information to network design and further network
optimization which helps operators to reduce the CapEx and OpEx.
7 Steps for Successful FTTx – LTE Deployments
Figure 3: Planning & Design Cycle
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Return on Investment (ROI) Analysis
ROI analysis is based on the present demand and future forecast of the geographical
and network coverage. The differentiation and classification of customers as business or
residential, high and low dense areas including
MDU, forms the part of the analysis. All these
analysis aspects help the operators to
understand the network construction areas and
the cost for building the network. The
identification of potential revenue generating
areas is also critical for business investment. This
analysis process leverages key GIS
functionalities, intelligent demographic data
combined with analysis of the customer’s
physical network to quickly identify key locations
for the focus of LTE nodes deployment. This
analysis provides a complete overview of the
areas to build, various feasible backhaul route options to reach the LTE towers from
MCNs / OTN switches and the services to offer which will help the operator to make
strategic decisions.
High-Level Design (HLD)
The HLD involves the evaluation of economic
development, identification of the existing
telecommunications facilities, forecasting future
customer demand and building the network based on
the RoI forecast. In addition, the HLD process will
handle the shortages of the existing network, TDM,
E1/T1 migration requirements and be able to serve
the present and future customers. The HLD provides
spatial based route mapping as well as physical and
technical constraints. This process targets the
network planning based on the ROI deliveries and
reducing cost of network migration/deployment, by
planning the most optimized network to meet customer requirements.
GIS study (i.e. existing trenches, ducts, cables, manholes, termination equipment and
locations) are first analyzed; thereafter, the new ducts and cables will be planned. While
planning the network, aspects such as customer demands, technologies and
architectures and topology are also considered. The HLD process includes estimating
the size of the fiber that needs to be placed from the central office to the LTE node as
well as placing optical terminals and structures. The creation of detailed permit drawings
is an integral part of this HLD process.
A key activity in this HDL process is to cluster the potential areas, grouping the feasible
eNodeB locations and segregating them into various OTN areas. Below are the basic
parameters considered for this process:
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Nearest and feasible route for each LTE
tower from nearest OTN switch
Maximum distance permissible for
eNodeB from nearest OTN switch
IP/Ethernet equipment termination
locations and its connectivity
Natural obstructions / boundaries such
as rivers, highways, railway tracks, etc.
Minimum road crossings
Length of the fiber / trenches
Feasibility to utilize the existing ducts / conduits
Field Survey
This field survey will be performed with reference
to the HLD documents. The field survey will be
broadly categorized into above ground and
underground data collection. As the name
suggests, the above ground data collection will
cover all above ground assets such as node
locations, buildings, poles, obstructions and fiber
cable routes, and the underground data
collection will cover all underground assets such
as optical fiber cables, ducts and all utilities. Field
survey can be performed many ways with the
help of advanced tools such as GPS, mobile
technology, radio frequency locating equipment,
etc. The following activities will be performed
during the physical site survey:
Field walkout to the particular site to identify
and confirm the node/building locations
Collection of latitudes and longitudes of the
node/building locations
Fiber tapping location and route to be connected from the main metro rings
Entry routes and termination points of each node building location
IP/Ethernet equipment locations / termination points
Estimation of fiber size that needs to be placed
Backhaul protection ring paths and routes to nodes
Details of cable loops and sufficient lengths
Possible road/railway crossings
Type of ground such as gravel or asphalt for construction
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Updating the new routs/buildings/any new GIS data with the latitudes and
longitudes onto the GIS system
Traffic density of roads, depending on different timings (peak and low)
Presence of utilities like gas, electrical, telecom pipelines
Limitation of local permissible possibilities
Construction types including boring, trenching drilling, etc.
Plan Approvals
Subsequent to field survey reports updating in the HLD drawings, all the consolidated
drawings and reports will be sent to the operator for approvals. The operators can make
the decision based on the investment plans and ROI.
Low-Level Design (LLD)
All approved HLD drawings and CAD
based tentative routes will become inputs
for low-level designs. The LLD process
starts with placing all the elements onto
the GIS and CAD system as per the HLD
document. The design activity includes
placing of duct structures, creation of duct
structure internals, design of trench routes
in continuation to underground routes,
optical fiber cable placement with reference to the duct structures, placement of splices,
connections and equipment, and end-to-end termination points. This is the most efficient
and economical process as this phase is
performed with a lot of automated
engineering tools. Further, a LLD delivery
pack set will be created which includes
detailed material requirement sheets
(BoM/BoQ), splice sheets, schematic
drawings, SLDs, road/railway crossing
detailed drawings and construction
drawings.
Field Build Out
Operator’s engineering team takes the completed designs and rollouts the network as
per the design instructions and work schedules. This process also includes providing a
lean support to the field crew to ensure the smooth network rollout on the fields. A
dedicated team will be assigned to this activity. The field team may find some changes
as per the field conditions which will be recorded onto the LLD drawings with hand-
written marks and will be sent back to the design teams.
As-Built Recording
Subsequent to the field work, the design team converts the field recorded information
into a work order for the as-built stage. Further all the field changes will be analyzed and
recoded either on the same LLD drawings or a geospatial system. Citrix architecture will
be proposed for accessing the spatial and other supporting systems.
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Figure 4: Infotech Online Setup for As-built Recording
Conclusion
Fiber enabled backhauls for LTE coupled with third-generation (3G) and fourth-
generation (4G) are becoming more famous for the operators due to the huge data traffic
growth. For many operators, migration to high-speed packet access network on the
same mobile backhauls just doesn’t make business sense. Migration of legacy TDM, E1
/ T1 circuits requires unique approaches as the general procedures are not sufficient
which are non-effective. The upcoming LTE network requires effective design tools to
ensure to meet the demand of ever-increasing deployments. Ultimately, the current
mobile towers requires re-design and upcoming LTE nodes are in need of efficient
network planning to leverage the fiber enabled backhauls. The key for the success is to
strategize the future-proof business models by leveraging the optical fiber cable
backhauls. The high-capacity fiber enabled backhauls by leveraging the GPON /
10GPON capabilities coupled with carrier Ethernet is always a wise choice for the
operators. That is the place where our innovative spatial approaches are helping the
operators globally.
Author Biography:
Kiran Solipuram has 14 years of experience in planning, design,
installation, construction, and operations of Telecom network
infrastructure with various multinational Telecom operators. He is
highly skilled in FTTx networks for Green and Brownfield
architectures including active and Passive Optical Networks (PON).
His innovative solutions on FTTx networks have been recognized
globally benefiting many operators. Kiran has in-depth experience on
SDH, ATM, IP/Ethernet Switching, xDSL / Broadband, Metro-
Ethernet, and IPTV technologies. He has managed large-scale LTE and FTTx projects
delivering on time and within budget with the utmost quality. He is a regular speaker
presenting at many global conferences throughout his career.
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Co-author Biography:
Kevin Challen, Global Telecom Business Unit Head at Infotech has
more than 20 years of experience in the Telecommunications field
where he has helped Telcos design and deploy sophisticated
Geospatial Information Systems in support of their push towards
integrated inventories. Under Kevin’s leadership, the business has
expanded in terms of services and clients, with Infotech as one of
the leading providers of inventory data services and engineering to
many Telco service providers. Kevin is a regular speaker in Europe
FTTH Council and published many publications in global GIS/Telecom conferences.
***
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