Towards an Intelligent World White Paper 2023

All-Optical Network
Intelligent OptiX Network,
Empowering Industries with AI

Building a Fully Connected, Intelligent World

Trend 1 Home Broadband Accelerates All-Optical Gigabit Coverage and Gives Rise to 10G

1.1. Multi-Service Homes, More Terminals and Apps, and HD/Interactive Experience 01

1.2. Fiber-in Copper-out and Gigabit Broadband Driven by Lower Costs and Preferential Policies 02

1.3. Commercial Use of 50G PON in 2024 to Boost 10G Applications 03

1.4. Suggestion: Accelerating Fiber Construction for 10G PON Ready Networks and Piloting 03
10G Services

All-Optical Home Network Development Picks Up Speed Driven by New Services

Trend 2 and Premium Experience
2.1. Current Networks No Longer Meet the Requirements of Smart Home Experience 04

2.2. Home Networking as a Major Operator Service Drives FTTR Into a Full Bloom 05

2.3. FTTR Bringing Additional Smart Home Revenues 06

2.4. New Services and High Experience Requirements Call for Premium Broadband Services 06

2.5. Suggestion: Continuously Improving FTTR Standards and Capabilities for Extensive 07
Deployment and Long-Term Benefits

Campus are Going All-Optical, Realizing "Zero-Wait, Zero-Frame-Freezing, and Zero

Trend 3
-Fault"
3.1. FTTO Meets the Requirements of Campus Cloudification and Sustainable Development 08

3.2. FTTO Enables Hard Isolation of Office, Security, and Other Services over One Network, 09
Reducing over 70%

3.3. FTTO Becomes the Best Partner for Campus Wi-Fi 7 to Evolve from GPON/XGS-PON to 10
50G PON

3.4. Suggestion: Continuously Building Consensus on FTTO Standards and Capabilities 10

Industry Communication Networks Are Upgraded and Developed Towards

Trend 4 Digitalization and More Reliable Connections
4.1 Industries Such as Energy and Transportation Are Upgrading Towards Intelligence, Green 11
and Low-Carbon Development, and Networked Control

4.2 Multiple Networks Are Converged to Meet Production Networks' Requirements for Physical 12
Isolation, High Bandwidth, Wide Connection, and Low Latency

4.3 Time for SDH Network Upgrade, with the Latest fgOTN Standard Being the Best Solution 13

4.4 Suggestion: Helping Enterprises Upgrade Digitally and Build a High-Quality Industry 13
Communication Network That Features Multi-Network Convergence
 Network DCI, East-West Traffic Surge, Transmission Capacity Upgrade, and
Trend 5 Large-Scale Application of High Baud Rate Technologies
5.1 Rapid Growth of Global Data Centers Places Higher Demands on DCI 14

5.2 High-Baud-Rate Technologies Are Mature, and 400G/800G Ultra-Long-Haul Transmission 15

Capability Has Been Verified

5.3 Computing Power/DC User Experience Upgrade, Promoting Network Upgrade in 16

Transmission Capacity Quality and O&M

5.4 Suggestion: Building All-Optical Premium Transmission Capacity Networks, with Single-Fiber 17
Capacity Evolved to 100T to Match Traffic Surge

Traffic and Experience Drive Metro All-Optical Bearing and Grooming,

Trend 6 Accelerating the Deployment of Optical Networks

6.1 New Cloud-Based Services Require Differentiated Network Experience, and Explosive Traffic 18
Growth Is Driven by FMC Acceleration and 10G Home Broadband

6.2 More Optical Networks Are Deployed for Flexible Scheduling of Networks and Improved 19
Automation Capabilities to Efficiently Construct Networks

6.3 Suggestion: Building Wide-Coverage Metro Optical Networks to Enable Ultimate Service 20
Experiences and Facilitate All-Service Development
 Towards an Intelligent World 2023—All-Optical Network

Trend 1
Home Broadband Accelerates All-Optical Gigabit Coverage
and Gives Rise to 10G
1.1 Multi-Service Homes, More Terminals and Apps, and HD/Interactive Experience

Home Transforming to a Multi-Service Center More Terminals and Apps

As networks and digital services become widespread, Intelligent terminals and apps are developing rapidly as
homes have become versatile, undertaking services such well. Data shows that 68.4% of households in China use
as online working, e-learning, and live streaming & e- more than 6 terminals. An average of 74 apps are installed
commerce. These three services have penetrate rates of on each mobile phone. Digital assets such as files, images,
47%, 40%, and 71% respectively among broadband users, and videos have increased by more than 30%,
indicating that network applications have expanded from demonstrating that user requirements for networks keep
entertainment to work, study, and other facets of life. growing.

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 Towards an Intelligent World 2023—All-Optical Network

Rise of UHD and Interactive Applications 3D display is also advancing rapidly with diverse products,

The application experience is also evolving towards 8K, including 3D tablets that are already in commercial use

interaction, and 3D. Television and OTT providers have and XR goggles with over 10 million shipments. Looking

introduced 8K channels and content sections. On OTT ahead, interactive applications integrating 8K and 3D

platforms, the number of anchors has exceeded 10 display will be the next trend.

million and 8K games are launched in 2023.

1.2 Fiber-in Copper-out and Gigabit Broadband Driven by Lower Costs and
Preferential Policies
Fast Decrease of HP Cost

Statistics shows that the fiber home pass (HP) cost in

major countries have decreased substantially as the
network scales out and new solutions become mature.
Compared to years ago, the cost has been slashed by
60%. Also, fiber is becoming the infrastructure for global
economies and societies, and governments around the
world are setting policies to boost the development of
fiber-based gigabit networks.

Fiber in and Copper out

Traditional copper cables provide only 11 Mbps for

upstream transmission with latency up to 100 ms, which
can no longer meet the requirements of high-quality
interactive services. In contrast, fibers not only provide
higher upstream bandwidth, but also support smooth
evolution with an extended lifespan. Due to these benefits,
many operators start migrating to fiber-based networks.
Statistics show that the number of copper cable users
peaked in 2022 and started to decline in 2023, and it will
continue to decrease annually by 3.3% for the next five
years.
Gigabit Broadband Becoming the Mainstream

Fiber HP enables operators to provide users with higher

bandwidth. It is estimated that the average access
bandwidth around the world will increase from 160 Mbps
in 2021 to 857 Mbps in 2027. So far, 461 operators have
launched gigabit packages, attracting 180 million users
and expecting to serve 500 million users by 2027.

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 Towards an Intelligent World 2023—All-Optical Network

1.3 Commercial Use of 50G PON in 2024 to Boost 10G Applications

More 10G Application Scenarios scenarios. Industry stakeholders such as the Broadband
As the next milestone on the F5G-A roadmap, the Development Alliance (BDA) and major Chinese operators
application scope of 10G have been expanded to smart have released white papers on 10G service scenarios,
campus, digital production, daily life, and city governance exploring the potential of next-gen PON networks.

Operators Launch 10G Packages, Striding Towards to build a "Dual 10G City". Moreover, more than 55
the 10G Era operators around the world have launched 10G packages,
Some regional operators already took a step towards 10G. and Huawei and more than 30 operators have completed
For example, Saudi Arabia has set the target of "10 Gbps 50G PON technology and service verifications. Thanks to
Society". In China, Beijing has unfolded the "Capital City these efforts, 50G PON will be put into commercial use
on 10G Optical Networks" initiative, and Hangzhou aims since 2024.

1.4 Suggestion: Accelerating Fiber Construction for 10G PON Ready Networks and
Piloting 10G Services
"To quickly meet user demands on premium fiber access, 10G PON Ready: Introducing 10G PON During Network
promote 10G services with improved experience, and Planning and Deployment as the Base for Gigabit Services
continuously benefit from fiber infrastructure, the following Operators should consider 10G PON at the beginning of fiber
measures are recommended for developing fiber networks." constructions to get ready for quick service provisioning and
Fiber Construction: Governments Making Preferential gigabit upgrade in the future. A 10G PON ready network is
Policies for Infrastructure Construction and Operators compatible with both GPON and 10G PON, which helps save
Using Flexible Network Solutions to Expand Coverage the TCO for future evolution.

To encourage fiber construction, it is recommended that 10G Service Pilot: Actively Piloting 10G Services to
regulators make related resources available, including Maintain Competitiveness and Unleash the Potential of
pipes and poles, and set preferential policies such as tax Fibers
reduction. In parallel, operators should adopt flexible site With 10G on the horizon, regulators should formulate new
selection, implement thick coverage and short access, and policies to provide guidance, and operators and industry
build digitalize ODNs to reduce the TCO for rapid partners should utilize innovative technologies and
expansion. architectures to promote new 10G services.

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 Towards an Intelligent World 2023—All-Optical Network

Trend 2
All-Optical Home Network Development Picks Up Speed
Driven by New Services and Premium Experiences

2.1 Current Networks No Longer Meet the Requirements of Smart Home Experience

Homes Evolving from Entertainment Centers to Multi- Poor Wi-Fi Experience Causing the Most User
Service Centers Complaints
As homes become more digital and intelligent, services As intelligent services emerge and flourish, the network
such as remote office, e-Learning, and e-commerce live requirements of home broadband users keep increasing.
streaming become popular in homes, in addition to
Among all broadband complaints, Wi-Fi related ones
entertainment. These services place greater demands on
account for more than 60%, which results in a higher OPEX
home network SLAs, requiring 10-fold connection
capacity, 300–100 Mbps bidirectional bandwidths, and a and churn rate, and hinders the development of home

deterministic latency below 20 ms. broadband.

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 Towards an Intelligent World 2023—All-Optical Network
Subscribed Bandwidth ≠ Actual Bandwidth of megabytes. This is largely due to aging network cables,

Users have gigabit to homes but can hardly enjoy outdated ONTs, 2.4 GHz single-band routers, and

megabit in rooms. Statistics show that 76% residential cumbersome networking with various devices from

users obtain bandwidths below their subscriptions, and different vendors.

Wi-Fi bandwidths inside rooms can be as low as dozens

2.2 Home Networking as a Major Operator Service Drives FTTR Into a Full Bloom

From FTTH to FTTR, home networking has become a

majorservice of operators.

Thanks to the mass adoption of FTTH, 84% of operators

around the world are developing their home networking
services. By the end of 2022, the smart networking service
of China Mobile has seen a penetration rate of 39%. In
addition to ARPU increase, home networking also
improves user loyalty with long-term package contracts
(2–3 years), and lowers the churn rate.

FTTR Becoming Industry Consensus and Starting to

Soar

As gigabit becomes popular, the industry has reached

consensus on FTTR + 10G PON to realize true gigabit
experience. This consensus is shared by more than 20
operators in the world, including AIS Thailand and CTM
Macao in Asia Pacific, STC Saudi Arabia and ET UAE in the
Middle East, TDE Spain and VDF Portugal in Europe, as
well as Oi Brazil and Entel Chile in Latin America. Tens of
millions of residential users around the world have
subscribed to FTTR. Leading operators in China such as
China Unicom Hebei can develop more than 2000 FTTR
FTTR is the only solution that guarantees whole-
house gigabit experience. users per day.

With more digital home services available, user

requirements for Wi-Fi coverage are also growing.
Compared to Wi-Fi mesh, PLC networking, and copper
cable networking, FTTR provides stable whole-house
gigabit coverage without blind spots and supports
seamless roaming, laying an all-optical base for digital
home applications.

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 Towards an Intelligent World 2023—All-Optical Network

2.3 FTTR Bringing Additional Smart Home Revenues

Smart Home Tides over the Trough and Increases Again

with 20%+ CAGR for the Next 5 Years

Shown by the Garner hype cycle, smart home has

overcome the trough of disillusionment and entered the
phase of steady growth. According to a 2022 Omdia
report, the number of smart homes will exceed 200
million globally in the next 5 years and generate market
space of more than $200 billion. At the same time, smart
homes will evolve from individual smart devices to whole-
house intelligence.

FTTH → FTTR → Smart Home

FTTR provides an all-optical base for digital home services
with additional revenues. Using the C-WAN architecture to
create a unified network, operators can extend FTTR
connectivity to whole-house intelligence + cloud
broadband + computer sensing, so as to leverage cloud-
network synergy to provide new intelligent services.

Operators Viewing Smart Homes as the Next Growth

Engine
Leading operators such as LGU+, DT, and three major
Chinese operators are actively leveraging smart homes to
kick into a new gear. China Mobile implements the
"HDICT 1+6" strategy, which stands for value-added
services including mobile home security, smart home,
elderly care, and in-home education, with revenues
increasing by 40% in 2022.

2.4 New Services and High Experience Requirements Call for Premium Broadband
Services
With the rapid expansion of UHD, interactive, and step towards evaluation standardization.
immersive broadband services, users care more about
home broadband experience and are willing to pay for it.
To address these requirements, operators turn to
premium broadband operations in three aspects:

Digital Measurement of User Experience

The focus of network evaluation has transitioned from

network quality to user experience, and operators need to
accurately measure home broadband service
performance. Some operators in Latin America use Wi-Fi
management systems to measure home Wi-Fi experience.
In China, China Mobile is the first operator to pilot the
home broadband experience evaluation system, taking a

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 Towards an Intelligent World 2023—All-Optical Network

Hierarchical Experience Monetization Proactive User Experience Assurance

Operators are developing scenario-specific services based Intelligent big data analysis and foundation models can
on all-optical networks to increase revenues. In Europe, close the loop of experience assurance. The three major
operators are promoting smart home services such as Chinese operators and leading operators outside China
home security, data storage, video streaming, and have all launched their foundation models together with
healthcare. In the Middle East and Asia Pacific, operators trial applications.
have introduced acceleration services for gaming, e-
Learning, and global network access.

2.5 Suggestion: Continuously Improving FTTR Standards and Capabilities for Extensive
Deployment and Long-Term Benefits
Telecom operators and related industries should focus on including operators' commercial package design,
experience monetization instead of bandwidth construction and acceptance standard setting, engineering
monetization, keep improving smart home experience of team enablement, and preferential policies. Furthermore,
home broadband users, and ensure that true gigabit is the delivery of premium FTTR products and services
available to them. The following measures are depends on proper planning, construction, acceptance,
recommended for advancing the FTTR construction. maintenance, and operations. By offering FTTR-based

Standards First: Creating and Improving the FTTR packages, operators can provide users with true gigabit
Standard Ecosystem experience.

To improve FTTR deployment efficiency in residential and Sustainable Development: Incubating Value-Added
commercial buildings, government departments should Smart Home Services Based on FTTR

come together to formulate FTTR standards related to To gain differentiated advantages, operators can adopt
cabling, construction, and acceptance. They should also new capabilities such as Nearlink and HarmonyOS to
work with global organizations such ITU, CCSA, and ETSI create an all-optical base and service ecosystem for
to push forward the FTTR standardization, including the whole-house intelligence. In this way, operators can create
measurement standard to evaluate service experience a connectivity, control, compute, and storage center for
and C-WAN architecture standard. smart communities and smart homes, enhance home
broadband quality, and improve user experience.
Extensive Deployment: All Out for FTTR

FTTR should be vigorously promoted from all facets,

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 Towards an Intelligent World 2023—All-Optical Network

Trend 3
Campus are Going All-Optical, Realizing "Zero-Wait, Zero-
Frame-Freezing, and Zero-Fault"
3.1 FTTO Meets the Requirements of Campus Cloudification and Sustainable
Development
More enterprises are migrating services to the cloud. It required each time the bandwidth needs an upgrade.
is predicted that 80% of enterprises will have 85% of their
Moreover, as campus requirements outgrow the
services run on cloud and application servers centrally
traditional switched Ethernet architecture, enterprises are
deployed in data centers or on public/private clouds. The
in urgent need for a network that supports north-south
traffic model of campus networks has also changed from
traffic and fast bandwidth increase with a simplified
east-west (horizontal) traffic to north-south (vertical)
architecture. The Huawei FTTO solution can meet these
traffic.
requirements with P2MP architecture, high energy
Bandwidth increases by five times every 5–8 years due efficiency, renewable resources, and smooth bandwidth
to service demand. In traditional solutions, re-cabling is evolution.

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 Towards an Intelligent World 2023—All-Optical Network

3.2 FTTO Enables Hard Isolation of Office, Security, and Other Services over One
Network, Reducing over 70%
There are many services running in a campus, including isolation and security.
office, security, production, and IoT. It is difficult to isolate FTTO provides multiple isolation solutions, including D-
these services and guarantee service security on NET private network isolation, OSU over PON private line
traditional networks, which lead to high equipment isolation, and 50G PON combo wavelength isolation. With
footprint, large-scale cabling, high investments, and the solutions, all services including office, security, IoT, and
difficult O&M. production can be carried over one network, reducing 70%
To achieve lower cost and higher efficiency in network cable usage. Therefore, FTTO is applicable to education,
O&M, customers are seeking multi-network convergence healthcare, retail, large business, and many other industry
and multi-service transport while ensuring service scenarios.

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 Towards an Intelligent World 2023—All-Optical Network

3.3 FTTO Becomes the Best Partner for Campus Wi-Fi 7 to Evolve from
GPON/XGS-PON to 50G PON
Wi-Fi 7 has moved from standardization to commercial bandwidth for Wi-Fi 7 APs. The proportion of multi-GE
use. Since 2022, Wi-Fi 7 chips were launched by vendors (2.5/5/10 GE) port shipment for campus networks will
such as Qualcomm, Broadcom, MTK, and Intel. More than continue to increase.
50 countries have authorized 6 GHz to Wi-Fi, making 160 FTTO supports smooth evolution from GPON/XGS-PON
MHz continuous networking possible and providing over to 50G PON, meeting the requirements of high-burst and
5 Gbps peak rate for a single terminal. high-density bandwidth in campus Wi-Fi. Therefore, it is
Wi-Fi upgrade boosts the upgrade of wired (Wi-Fi AP an optimal choice for Wi-Fi 7 AP backhaul.
backhaul) networks, and 2.5 GE is the minimum

3.4 Suggestion: Continuously Building Consensus on FTTO Standards and Capabilities

FTTO features full-fiber connection (FFC), enhanced fixed collaboration, and ultimately realize sustainable industry
broadband (eFFB), and guaranteed reliable experience development.
(GRE). It is an optimal solution to replace the traditional
Replacing Traditional Ethernet Networking with FTTO
Ethernet and game changer in improving competitiveness.
Enhancing Industry Consensus on FTTO by Expanding Advanced technologies such as FTTO, 50G PON, and network
Application Scope slicing should be applied to campus networks with growing

It is recommended that stakeholders throughout the all- north-south traffic, bandwidth-hungry services, and multi-

optical industry — including design institutes, integrators, network convergence. Benefits of these technologies are

and typical customers and partners — work together to substantial, including simplified network architecture, easy

optimize the FTTO solutions, set engineering standards evolution and O&M, and high reliability. They can greatly

and specifications, promote demonstrative use cases, reduce the complexity of campus network construction,

cultivate talents, tackle challenges with extensive reduce the TCO and carbon footprint, and improve O&M
efficiency.

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 Towards an Intelligent World 2023—All-Optical Network

Trend 4
Industry Communication Networks Are Upgraded and
Developed Towards Digitalization and More Reliable
Connections
4.1 Industries Such as Energy and Transportation Are Upgrading Towards Intelligence,
Green and Low-Carbon Development, and Networked Control
Electric Power Urban Rail
Guided by carbon peak and carbon neutrality strategies, To implement the strategic goal of building national
more small-inertia clean energy will be connected to grid. strength in transportation, the urban rail industry
Against the backdrop, the proportion of new energy will proposes to develop smart urban rail. In a development
reach 48% by 2030. In the future, new power system will outline by Chinese government, the "1-8-1-1" layout
undergo five major changes. First, the number of new structure (one blueprint, eight intelligent systems, one
energy connections will increase to 100 million. Second, urban rail cloud and big data platform, and one technical
the type of new digital applications will increase by standards system) has been proposed to promote service
several dozens during their deployment from substations cloudification and smart transformation. Specific
to distribution networks. Third, the number of low-carbon development goals are also provided in the outline. By
energy transaction users will increase to 500 million. 2025, 85% services will be migrated to the cloud, posing
Fourth, new energy poses higher requirements on precise higher requirements on bandwidth and north-south
load control with low latency and high reliability. Fifth, traffic.
the rapid development of new energy vehicles brings
increase in the number and coverage rate of charging piles.

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 Towards an Intelligent World 2023—All-Optical Network

Highway services, specific quality improvement objectives have

Infrastructure has witnessed rapid digital upgrade. Road been proposed, including great improvements in video

network awareness and online joint control will be spot density, video online rate, and charging accuracy. To

realized by 2025. V2X through smart road + smart achieve smart highways in the future, infrastructure

vehicles and L2+ autonomous driving capabilities will be networks with lower latency and higher reliability are

supported by 2027. For video security and charging required.

4.2 Multiple Networks Are Converged to Meet Production Networks' Requirements

for Physical Isolation, High Bandwidth, Wide Connection, and Low Latency
Electric Power guaranteed bandwidth and low latency are required to

1. Electric power has been digitally upgraded, with zone accelerate image analysis.

III/IV services deployed to distribution networks, calling Roadway

for multi-network convergence, physical isolation, and
1. Roadside situational awareness of vehicle-road
unified bearing.
synergy, vehicle to everything (V2X), and intelligent
2. The grid connection of small-inertia clean energy and driving have brought 50-fold traffic for one site,
tens of millions of charging piles have posed higher calling for high-speed, real-time, stable, and reliable
requirements on precise network control, with the latency service control networks.
shortened from seconds to milliseconds.
2. In the construction of a modern comprehensive
Urban Rail transportation system, more cameras will be

Video cloudification and centralized image analysis have deployed for the connection of video cloud, and the

brought surging north-south traffic. As such, 10-fold online rate requirement of cameras exceeds 99%.

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 Towards an Intelligent World 2023—All-Optical Network

4.3 Time for SDH Network Upgrade, with the Latest fgOTN Standard Being the Best
Solution
After more than 20 years of use, the industry's SDH Incorporating SDH's small granularity and OTN's 100G+
production networks failed to ensure industry chain high bandwidth, the latest fgOTN technology has become
health and keep pace with the evolution of standards and the best technical solution to replace SDH. fgOTN has
new technologies. For ever-changing digital applications, been widely recognized in the communication industry
various terminals, and AV/VR intelligent assistance, the and will be officially released at ITU-T/IEEE/CCSA by the
10G bandwidth upper limit has presented challenges for end of 2023.
the industry's further development.

4.4 Suggestion: Helping Enterprises Upgrade Digitally and Build a High-Quality

Industry Communication Network That Features Multi-Network Convergence
Constructing High-Quality Networks Featuring Multi- to surging bandwidth requirements. It is time for SDH
network Convergence network reconstruction and upgrade. The latest
Industry production networks pose higher requirements transmission and access technologies can be used for
for latency and reliability, and industry office networks network upgrade to improve bandwidth and network KQIs.
are increasingly demanding on network bandwidth
Performing E2E Visualized Management
upgrade. New types of services and applications
continuously emerge. Against the backdrop, a high- Network digital twin has been widely recognized in the
quality communication base featuring multi-network industry. Industry network requirements are gradually
convergence should be built to pave the way for the extended and expanded beyond transmission. In addition,
industry's digital upgrade. the number of access terminals is increasing rapidly,
adding complexity to network management. As such, a
Upgrading Bandwidth and Fundamental Technologies
visible and manageable E2E network from transmission
OSU technology and industry chain are mature, and
to access should be built to provide an overview for
related standards have been fully released. Global
unified management and O&M.
enterprises have witnessed rapid digital upgrade, leading

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 Towards an Intelligent World 2023—All-Optical Network

Trend 5
Network DCI, East-West Traffic Surge, Transmission Capacity
Upgrade, and Large-Scale Application of High Baud Rate
Technologies
5.1 Rapid Growth of Global Data Centers Places Higher Demands on DCI
Data Centers Flourish, Driving Data Center Interconnect OTT Giants Deploy AI Full Stack, and the Generative AI
(DCI) Demand Growth Industry Will Be Rapidly Developed in 2–5 Years

The DCI investment scale is growing rapidly, with ICPs/ With the rapid development of generative AI, massive
bandwidth requirements will be released during the
CNPs and CSPs making up a large proportion of the
development from text to video and machine awareness.
investment: ICPs/CNPs makes up 50% of the investment,
Foundation models drive computing power to the cloud, and
and CSPs 36%. a new mode of intelligent computing cloud services has been

(ICP is short for Internet content provider, typically AAG; created, including computing power generation and
transmission. Computing service provisioning points tend to
CNP is short for carrier-neutral provider, typically Equinix
be centralized, and computing training requires continuous
and Digital Realty; CSP is short for communications interaction of new data to enable smarter and real-time
service provider.) judgment. Massive data is efficiently transmitted for
hundreds or even thousands of kilometers between DCs and
between DCs and enterprises.

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 Towards an Intelligent World 2023—All-Optical Network

Operators Accelerate the Deployment of Computing computing resource transfer project to build high-speed
Power Centers and Use the Network-Driven Computing DCI national backbone networks, and tier-1 operators in
Enhancement Strategy to Promote the Rapid Growth of
regions outside China build pan-regional backbone
DCI Requirements
networks to improve single-fiber capacity.
Operators in China implement the east-to-west

5.2 High-Baud-Rate Technologies Are Mature, and 400G/800G Ultra-Long-Haul

Transmission Capability Has Been Verified
Based on the development of the following technologies, This helps eliminate the problem of key impedance
the networking capability of 400G optical modules has discontinuity, greatly reduce reflection, and increase
reached the same level as that of 100G/200G optical bandwidth.
modules, covering long-haul and ultra-long-haul
backbone transmission scenarios. 3. High-performance optical algorithms compensate for

1. Mature high-speed optical components: high-speed system performance impairment and allow transmission

optoelectronic components with a baud rate of 130+ GBd performance to approach the Shannon limit: The indicator

have been mature in 2023, including modulators, ADCs, discretization and E2E impairment of optoelectronic

DACs, and ICRs, enabling QPSK high-performance components are the main factors that affect performance.

encoding for 400G optical modules. DSP algorithm compensates issues including component
consistency indicator defects, crosstalk, and nonlinearity
2. Packaging technique has broken the bandwidth limit:
using constellation shaping modulation, component
Optoelectronic packaging is used to package oDSP,
impairment calibration, and nonlinearity suppression
modulator, driver, and receiver on the same substrate.
technologies.

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 Towards an Intelligent World 2023—All-Optical Network

400G QPSK Performance Test Covers 5000 km+, Meeting

Backbone Deployment Requirements
In June 2023, China Mobile and Huawei jointly completed the live network test and
verification for 6028 km 400G transmission from Ningbo, Zhejiang, to Gui'an,
Guizhou. According to the results, the network fully satisfies the requirements of the
east-to-west computing resource transfer project. In addition, Huawei uses Super C+L
band technology to provide the industry's widest spectrum: 12 THz. http://qiye.
eastday.com/n34/u1ai1117410.html

In March 2023, Nokia cooperated with GlobalConnect to conduct the first live
network test of the sixth-generation super coherent photonic service engine: PSE-6s,
which supports a baud rate of 130 GBd, and 1.2 Tbps metro transmission (118 km)
and 800 Gbps long-haul transmission (2019 km). https://it.sohu.com/a/718554148_
121118997

5.3 Computing Power/DC User Experience Upgrade, Promoting Network Upgrade in

Transmission Capacity Quality and O&M
DC-Centric Network Construction Drives the Upgrade cloud and the edge through highly-reliable and low-
of Transmission Capacity Quality latency networks. Functioning as the link between users
Amid accelerated digital transformation of enterprises and computing centers, transmission capacity networks
and the rapid development of intelligent computing, are accelerating the evolution towards certainty and high
supercomputing, and AIGC services, vendors such as quality. Ubiquitous transmission capacity networks
operators and OTT providers have witnessed rapid featuring low latency, high reliability, and integrated
increase in their DC scale and quantity. In addition, scheduling will be available on demand and help unleash
industries such as finance, smart transportation, smart computing service potential, bringing ultimate user
manufacturing, healthcare, and video rendering require experiences.
that massive data be quickly transmitted between the

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 Towards an Intelligent World 2023—All-Optical Network

Automatic and Intelligent Optical Networks Accelerate on differentiated operations of deterministic service SLAs,
O&M Upgrade and three tier-1 operators have released the goal of
The scale of optical networks continues to grow. achieving L4 autonomous networks by 2025. Amid the
Traditional optical network O&M is user-centric, which development of converged sensing, data analysis, and
cannot meet operators' requirements for OPEX reduction intelligent technologies, the transmission capacity
and high-quality operations of services. For example: In assurance of optical networks will gradually evolve to
Europe, TTM of services can be several months. In Africa, high-level automation. In this way, differentiated and
fiber fault locating takes 4 to 8 hours. In Asia-Pacific, deterministic transmission capacity assurance can be
there are strong demands for agile provisioning of private provided for various industries, helping operators reduce
line services, online bandwidth adjustment, and service costs, improve efficiency and quality, and increase
SLAs. In Middle East and Latin America, much attention is revenue.
paid to resource visibility and forecast. In China, we focus

5.4 Suggestion: Building All-Optical Premium Transmission Capacity Networks, with

Single-Fiber Capacity Evolved to 100T to Match Traffic Surge
Matching the cloud-network strategy, build all-optical Optical Layer Is Upgraded to C120+L120 to Release
transmission capacity networks, upgrade the single- Fiber Spectrum
wavelength rate and optical spectrum simultaneously, 1. Wavelength spectrum upgrade: C120 → C120+L120
and implement Moore's Law. (The capacity of a single 2. Optical-layer grooming upgrade: FOADM/ROADM →
fiber is doubled, with the backbone network upgraded C+L integrated OXC
from 16 Tbps to 32 Tbps, and the metro network
Towards All-Optical Transmission Autonomous
upgraded from 32 Tbps to 64 Tbps or 96 Tbps.)
Networks, Enabling Premium Operations
400G/800G Are Deployed at the Electrical Layer, 1. O&M upgrade: offline service planning, manual fault
Reducing Per-bit Costs locating → online planning, automatic optical-layer
1. Ultra-long-haul backbone network: 200G QPSK → deployment, and intelligent fault locating
400G QPSK 2. Service quality upgrade: bandwidth assurance →
2. Metro medium- and short-haul: 400G 16QAM → 800G differentiated SLA agile scheduling, availability assurance,
16QAM/1.2T 64QAM and latency assurance

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 Towards an Intelligent World 2023—All-Optical Network

Trend 6
Traffic and Experience Drive Metro All-Optical Bearing and
Grooming, ingAccelerat the Deployment of Optical Networks
6.1 New Cloud-Based Services Require Differentiated Network Experience, and
Explosive Traffic Growth Is Driven by FMC Acceleration and 10G Home Broadband
New Cloud-based Services Require Differentiated SLA The FMC Trend Accelerates, and Optical Fibers Become
Network Experiences Network Bottlenecks

With the rapid development of digitalization and In the past four years, 29% global mobile operators have
intelligence, ultra-fast cloud interaction services, such as
developed fixed network services, transformed into
naked-eye 3D, cloud NAS, VR cloud gaming, and cloud
integrated operators, and released full-service packages to
office are developing rapidly. Network bandwidth and
latency must be improved by 10 times to ensure user enhance their competitive edge. Most of operators have
experience. For example, the interactive cloud gaming insufficient fiber coverage, and 53% operators need to
service requires higher than 1 Gbps bandwidth and lower lease more fibers. In this case, fiber efficiency needs to be
than 20 ms latency, and cloud NAS services require up to
maximized to reduce fiber leasing costs.
2 Gbps bandwidth.

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 Towards an Intelligent World 2023—All-Optical Network

Average Annual Growth of Network Traffic: 30% needs to be continuously reduced, and network resource

With the development of 5G, gigabit home broadband, utilization needs to be improved to meet service

and enterprise services, the average annual growth rate development requirements.

of network traffic exceeds 30%. Per-bit cost of networks

6.2 More Optical Networks Are Deployed for Flexible Scheduling of Networks and
Improved Automation Capabilities to Efficiently Construct Networks

Operators Accelerate Constructing Metro Optical latency.

Networks
This solution takes network costs and efficiency into account
In the past five years, the proportion of global optical and supports smooth evolution. It has been deployed on
transmission networks deployed at metro aggregation more than 30 networks around the world and has become
sites has increased from 20% to 85%, and the proportion one of the mainstream solutions for metro network
of global optical transmission networks deployed at metro construction.
CO sites has increased to 41%. The main reason is that the
site scale increases tenfold for each network layer. In the
future, all-optical networks will be further extended to
cover 70% of CO sites, and all-optical integrated bearer
networks will be built to implement operators' all-service
development strategy.

E2E Network Automation

Amid the large-scale construction of metro networks and

increasing network nodes, traditional manual O&M
cannot satisfy network development requirements.
Network automation needs to be provided in the
planning, construction, maintenance, and optimization
phases to improve network O&M efficiency and reduce
network OPEX.
Efficient Network Construction Using the Pooling
Architecture

Traditional metro networks mainly use FOADM, which has

inflexible scheduling and low resource utilization. Metro
networks with optimal TCO can be built by innovating the
pooling architecture solution, building bandwidth resource
pool to efficiently share wavelength resources at aggregation
sites, and by leveraging 100G to site, E2E all-optical
switching, one-hop service connection, and lower network

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 Towards an Intelligent World 2023—All-Optical Network

6.3 Suggestion: Building Wide-Coverage Metro Optical Networks to Enable Ultimate

Service Experiences and Facilitate All-Service Development
Constructing Metro Optical Networks with All-Service build efficient and flexible metro networks. By doing so,
Bearing energy-saving services, ultra-low latency, and cloud-network
New types of services and applications continue to synergy can be enabled to promote network evolution in the
develop. Metro optical networks that carry all services next 10 years.
need to be constructed, with improvements on
Network Automation, Simplifying O&M
bandwidth, latency, and availability. This can help
Network digital twin has been widely recognized in the
promote operators' all-service development strategy,
industry. The number of network nodes increases rapidly,
meet service requirements in the next 10 years, and
adding complexity to network management. Transmission
provide premium experiences.
networks are evolving towards automation. Digitalization
Efficient Network Construction Using Metro Pooling at the optical layer and AI technologies are introduced to
Architecture
improve network O&M and self-optimization capabilities,
The resource-sharing pooling architecture enables 100G thereby lowering skill requirements for O&M personnel
services to be delivered to sites, flexible E2E all-optical and simplifying O&M.
grooming, and one-hop connection to the core network to

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