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Network and Infrastructure: Jazztel Network

	JAZZTEL Group has developed an extensive Network in order to provide its customers with innovative broadband services supported by its own infrastructure, thus being able to guarantee control over the quality given to customers. JAZZTEL Group’s Network is made up of four main elements: • The National Trunk Network. • Metropolitan Area Networks (MANs). • Local Access DSL Network. • Multiservice nodes.
	National Trunk Network (Backbone) and International Connectivity JAZZTEL Group has created its own metropolitan and provincial optical fibre Network in Spain’s main cities, and joined them all together with the national trunk Network (Backbone) supported by agreements with long-distance connectivity providers. The map below shows the structure of JAZZTEL’S National Network in 2004.   This national Network is supported by nearly 6,000km of optical fibre that provide direct services to customers in 23 provinces. All other provinces are served indirectly and we reach customers by means of agreements for sharing infrastructures and interconnections with other carriers. Expansion of broadband coverage is being considered for the entire country as part of the development of the Strategic Plan, and by the end of 2004 contact had been made with various providers to achieve this aim.   During 2005, we expect to reach 47 mainland provinces and Palma de Mallorca (Balearic Islands), with connectivity to the Canary Islands being researched for the coming years. On the whole, we expect to deploy an infrastructure based on more than 17,000km of optical fibre from various providers.
	Metropolitan Area Networks The metropolitan rings, or MAN Networks, consist of single rings of optical fibre that enable a direct connection with customers within the city or metropolitan area. On 31 December 2004, 2,718km of metropolitan access Networks had been laid. JAZZTEL has set up MAN Networks in Madrid and various municipalities in the Madrid province (including Coslada, Torrejón, San Fernando, Alcobendas, and Tres Cantos), in Barcelona and various municipalities of Barcelona (including Hospitalet, San Cugat, Mataró, Badalona), and also in other cities in Spain, such as Valencia, Castellón, Alicante, Bilbao, San Sebastián, Zaragoza, Seville, Málaga, Valladolid, Albacete, Vigo, La Coruña, Córdoba, and Almería. In some cases, JAZZTEL has resorted to leasing optical fibre (dark optical fibre ) instead of laying its own infrastructure, mainly to connect municipalities to each other thus avoiding inter-urban sections. JAZZTEL Group uses its deployment of optical fibre to directly connect customers to its broadband Network using various access technologies depending on the type of customers and their geographical concentration:     SDH or CDWM technology is used to connect customers with the greatest telecommunication needs directly to our optical fibre Network therefore offering them the highest level of reliability and growth in bandwidth.     Broadband DSL Access is used to connect business or residential customers with medium levels of consumption, using copper loops leased from the incumbent carrier as described further on. This combination of technologies using optical fibre enables JAZZTEL to reach a greater number of customers of very different types (e.g. all sizes of businesses, professionals, individuals, wholesale customers), and to give them more innovative services with greater bandwidth. The optical fibre Network is designed to be gradually expandable and to ensure high levels of flexibility and reliability. This design enables JAZZTEL Group to provide its current customers with high bandwidth while ensuring substantial potential for future expansion:     Capacity for gradual expansion. A optical fibre Network has been built that is capable of offering high capacity in all its components. It is a high-capacity Network built with a minimum of three conductions for each MAN, capable of carrying up to 300 fibres in each conduction. The current design of the MAN Networks uses one of these conduits, while the rest are left to provide greater Network capacity or to be sold or exchanged with other telecommunications companies or businesses. The MAN Networks contain an average of 128 fibres, but this figure may vary by between 60 to 300 fibres, depending on the number of buildings or central offices connected or to be connected to the MAN Network in the future. This provides the flexibility needed to add customers without interrupting the service to existing customers.     Reliability of the fibre access Network. The Network provides redundancy on multiple levels by using a shared-protection ring structure to enable customer traffic to be directed simultaneously in both directions of the Network rings, thus reducing service loss to a minimum in the case of damaged cables or equipment failure. Local Access DSL Network (ULL)   JAZZTEL is deploying a Local Access Network using DSL technology supported by its Metropolitan optical fibre Network (MAN). The deployment of this Network consists of installing its own DSL equipment (DSL or DSLAM broadband multiplexers) in the central offices of the incumbent carrier (equipment in co-location). The DSL machines in co-location enable the provision of advanced telecommunications services (Broadband Internet access, Voice over IP, and Content) over unbundled local loops. As a result of current regulation of access to the local loop, JAZZTEL can “unbundle” the local loop (Unbundling Local Loop, ULL), that is, it can connect directly to the end-customer with a co-located machine. JAZZTEL therefore provides and manages the service directly as described in the following illustration.   As a fundamental part of the development of the company’s Strategic Plan, JAZZTEL has a deployment plan with the aim of achieving 70% direct coverage of the Spanish market in the medium term. At the end of 2004, JAZZTEL had over 87 ULL exchanges in service covering around 14% of lines in Spain. The map below illustrates the distribution of exchanges connected in 2004.   Furthermore, in order to fulfil coverage targets set for 2005, JAZZTEL made colocation applications with respect to 500 central offices at the end of 2004. This would be the equivalent of additional coverage of 40% of the potential market, therefore reaching all Spanish provinces, except for the Canary Islands due to the difficulties and barriers involved in connecting them. Multiservice nodes, points of presence and points of interconnection At the end of 2005, JAZZTEL Group had points of presence of various categories in 50 provinces.     Multiservice nodes: this is where we have technical centres equipped with the necessary infrastructure to host the machines that manage voice, data, and Internet services. These Multiservice Nodes are in Madrid (2), Barcelona (2), Valencia and Seville.     Points of Presence: these are technical centres that concentrate traffic from different Network routes, or traffic exchange points (interconnection) between the JAZZTEL Network and other public telecommunications Networks. They are connected to the Multiservice Nodes through the National Network. JAZZTEL has its own Points of Presence in 19 provinces (in addition to the 5 provinces with Multiservice Nodes), and Points of Presence shared with third parties (housing) in all other provinces. Each of the points of presence is an interconnection point that connects the JAZZTEL-Group Network with the Telefónica Network or that of another company. In the largest cities (Madrid, Barcelona, Valencia, and Seville), JAZZTEL Group has deployed dozens of interconnection points with Telefónica and other carriers in order to exchange local traffic and slightly reduce interconnection costs. On 31 December 2004, JAZZTEL had over 240 interconnection points in Spain (164 with Telefónica), and most with its own Network (optical fibre interconnection points).