FTS Networx Strategy Public Forum

1
FTS Networx Strategy Public Forum

• Mr. John C. Johnson
• Assistant Commissioner, FTS
• August 11, 2004

2
8 Observations

• Customers seek efficient network solutions
  (price quality)
• Competition remains a driver for efficiencies and
  innovation
• Technology investments are linked to performance
• Customer diversity requires a robust portfolio of
  offerings
• Security must be integral to the solution
• Ease of use is a value discriminator
• Convergence is occurring on many levels
• OSS efficiencies are the next frontier

3
Delivery Contracts
Sprint
FTS2001
MCI
ATT
Verizon
FTS Crossover
SBC
Winstar/IDT
Qwest
4
Network Services Growth vs. Economic Value
Price reduction
Price Reduction
Volume Growth
Volume Growth (Data Services)
5
Network Evolution
Current
Projected
Monthly Mbps
FTS2001 transition complete
6
Evolving Network Infrastructure
Today (FTS2001, Wireless Crossover)
In Progress (Networx)
Technology-specific services and networks
Plug-and-play solutions Performance/SLA-based
converged network
Wireless voice/data
Wireless
Internet
All modes of Access
Internet access
PSTN/ 800
Circuit-switched voice/data
IP/MPLS Converged Network
ISDN
Voice/Data
Video
Private Line
Frame Relay
Private Line
ATM
Frame Relay
ATM
7
New Services New Delivery
1999
2004
8
Evolution from Traditional to Managed Network
Services
Traditional Telecommunications Delivery
Value-Added Delivery
Standard Services
Managed Services
Enterprise Solution
Managed Enterprise

• Full Lifecycle Service Engineering

• Individual Service Reqts Definition

• Solution Reqts Definition

• Enterprise Reqts Definition

Customer Technical Network Responsibility
Decreases

• Application-level (e.g. Voice)
• Application Performance

• Desktop-level Availability
• Enterprise/Mission Performance

• Individual line
• Technology/Service Performance

• Router-router
• Network QOS

SLA Scope Broaden

• Each Component, Circuit

• CPE Router Ports

• Application

• Desktop

Service Demarcs Decrease

• Many per application
• Many per facility

• Few per application
• Few per facility

• One per application
• Few per facility

• One per facility
• Few across Enterprise

Billing Line Items Simplify