NGN Migration Strategy

1
NGN Migration Strategy ImplementationCase
Studies
Dipankar Dasgupta, Vice President, Technology
Solutions, Lucent Technologies A/P
2
Agenda

• Technology for the sake of business (is IP a
  magic potion?)
• NGN is not about technology
• History - ISDN and Frame Relay
• Emergence of IP and the original intend of its
  design
• Past glory and successful deployments
• NGN Introduction
• NGN business imperatives
• Is TDM being replaced by Soft-switch?
• Network layer attributes
• Service Providers NGN Strategy
• Packet where and when it makes sense
• NGN Deployment Case studies
• Summary - Should SPs deploy packet?

3
NGN is not about technology?

• NGN deployments should be driven by business
  needs
• NGN should be able to
• mitigate the threat from declining revenue from
  legacy services (Voice, Leased lines)
• leverage on data growth
• Increase profitability
• New Revenue
• Reduce Cost
• SPs need to think-thru their transition plans
  for a smooth NGN migration

4
Frame Relay
vs
Frame Relay
X.25

• Outband signaling
• End to end error control
• Multiplexing of VCs at layer 2
• Trusted lower layers
• Higher throughput
• Low Overheads

• In band signaling
• Node by node error control
• Multiplexing of VCs at layer 3
• Didnt trust lower layers
• Slow
• Heavy Overheads

Quality of Transmission Networks
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ISDN
vs
ISDN
Dial-up

• Separate lines
• Limited to 56K
• Minimal
• Cheap to dial up
• simple provisioning
• ???

• Voice and Data converged
• Higher speed data
• Expensive CPE
• Unattractively priced by SPs
• Complex provisioning
• Only solved last mile speed

Bandwidth of Backbone
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What does it take for a technology to succeed?

• Needs to fit into the overall network
• Clearly add value.
• For Service Provider
• Increase efficiency
• Reduce OpEx
• Good ROI on CapEx
• Easy to operate and maintain
• Increase revenue
• For End user
• Friendly interface
• Increase productivity
• Reduce cost
• Value for money
• Rapid service
• Reliability / Security

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VoIP The past glory

• A time of deregulation fresh networks
• Trump card for CLEC to challenge the incumbents.
• High cost of bandwidth
• The arbitrage opportunity of enjoying the
  toll-bypass advantage
• Increased the volume by addressing new market
  segment
• Small start-up size (lt 30E1s)
• Lower capex cost (lt 150K)
• Approximately 9-12 of total outgoing IDD minutes

Year 2000 - Capex per E1 (gt100E1)
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VoIP in IDD domain.

• It fitted into the overall network
• For Service Provider
• Increase efficiency
• Reduce OpEx
• Good ROI on CapEx
• Easy to operate and maintain
• Increase revenue
• For End user
• Friendly interface
• Increase productivity
• Reduce cost
• Value for money
• Rapid service
• Reliability / Security

9
Agenda

• Technology for the sake of business (is IP a
  magic potion?)
• NGN is not about technology
• History - ISDN and Frame Relay
• Emergence of IP and the original intend of its
  design
• Past glory and successful deployments
• NGN Introduction
• NGN business imperatives
• Is TDM being replaced by Soft-switch?
• Network layer attributes
• Service Providers NGN Strategy
• Packet where and when it makes sense
• NGN Deployment Case studies
• Summary - Should SPs deploy packet?

10
NGN - Business Imperatives

• New revenue sources
• Enhanced services and applications
• Increase productivity
• Multimedia communications
• Convergence of Voice and Data networks
• Improved cost management
• Traditional reliability

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Traditional Network

• Access Layer Services/Revenues
• Customer is used to certain services set
• Interoperability Any-to-any place call
• Reliability and Availability
• Customer is looking for new services
• Toll Tandem layer Cost Savings
• Interoffice trunk provisioning
• Office space / facilities cost
• International Layer New Revenue Generation
• Settlement with other carriers
• Volume driven game
• Flexibility to interconnect with multiple carriers

12
Is TDM being Replaced by NGN in the Near Future?
2001 Survey of 17 carriers by Infonetics
More than 90 carriers are not planning to
replace TDM with softswitches before 2005
More than 80 carriers are planning to deploy
softswitches for revenue enhancement and NOT for
replacing legacy switches
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Agenda

• Technology for the sake of business (is IP a
  magic potion?)
• NGN is not about technology
• History - ISDN and Frame Relay
• Emergence of IP and the original intend of its
  design
• Past glory and successful deployments
• NGN Introduction
• NGN business imperatives
• Is TDM being replaced by Soft-switch?
• Network layer attributes
• Service Providers NGN Strategy
• Packet where and when it makes sense
• NGN Deployment Case studies
• Summary - Should SPs deploy packet?

14
Service Provider NGN Strategy

• Focus on new revenue
• Incremental investments
• Multimedia applications
• Voice as value added service over data network
• Start Packet-izing network where it makes
  sense

Packet where and when it makes sense
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• NGN Deployment Case Studies

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Access
RAS
Internet
Packet Core (ATM/IP)
SDH Core
XDSL

• Multi-service access node
• Packet Interface to network
• Improved efficiencies
• Centralized management

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Case Study KT, Korea
Network Before LAG
Class 5 Digital Switch
Class 5 Digital Switch
PSTN
Toll / Tandem
SS.7 Possible
SS7 Possible
Class 4
DSLAM
SS7 NOT Possible
SS7 NOT Possible
Class 5 Analog Switch
Data Call(s)
DSLAM
Class 5 Analog Switch
Packet Backbone
Data Call(s)
Data Calls Voice Calls
Internet
Subscribers on Analog Switches did not have
access to IN services
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Case Study KT, Korea LAG the right step
towards NGN
Class 5 Digital Switch
Class 5 Digital Switch
PSTN
Toll / Tandem
No.7 Possible
No.7 Possible
Class 4
V5.2 Interface
V5.2 Interface
Data Call(s)
Data Call(s)
POTS ISDN xDSL
POTS ISDN xDSL
Anymedia LAG (v5.2 remote)
Anymedia LAG (v5.2 remote)
Packet Backbone
Data Calls Voice Calls
Internet

• Replacement of Analog Switches with Line Access
  Gateway
• Voice traffic is connected to Digital Switch via
  v5.2
• Increase potential for IN services

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Packet Tandem
RAS
Internet
Packet Core (ATM/IP)
SDH Core
XDSL

• Consolidation of networks
• Single management
• OAMP efficiencies
• Centralized management

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Case Study - Packet Tandem
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Revenue Generating Applications (Managed
Ethernet)
RAS
Internet
Packet Core (ATM/IP)
SDH Core
XDSL

• High value business customer
• Increased revenue

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Ethernet Services Enhance NOT Cannibalize
Revenues
Gaps in Data Services
Some Customer Applications with Flexible
Bandwidth Needs
64 Kbps 128 kbps
Gap
2 Mbps
Gap
34 Mbps
Gap
155 Mbps
Gap
622 Mbps
Gap
Provide Carrier-Class Data Service (Private
Line) with Flexible Speeds
2.5 Gbps
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Case Study DT Leased Link DDV-M Ethernet 100

• DT implemented Lucents Metropolis family and
  LambdaUnite products based EoSDH solution for
  offering Ethernet based transport services,
  named, Leased Link DDV-M Ethernet 100 across
  Germany
• Targeted at enterprises, this service merges
  local LANs at different sites into one logical
  network.
• End user Benefits
• Germany-wide interconnection of LANs at different
  sites
• Flexible Bandwidths - scalable to 100Mbps without
  changing the interface
• Connection via LAN switches no investment in
  new routers
• Monitored by a fully developed network management
  system
• Future proof, scalable and based on reliable SDH
• Guaranteed availability of almost 100 on the
  backbone

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Revenue Generating Applications (Business
Services IP Centrex)
RAS
Internet
Packet Core (ATM/IP)
SDH Core
XDSL
LAN

• High value business customer
• Increased revenue

Managed Ethernet
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Case Study - SBCSBC Migrated from Centrex to IP
Centrex
Centrex was impacting Top-line

• For every 1M lines of Centrex
• 750,000 of retainable customer revenue walks out
  the door every week, or 39 million every year
• Average contract life of 5 years results in total
  lost contract revenue of 195 million
• NOTE
• Typical Centrex erosion rate is 10, or 100,000
  lines/year, or 1920 lines/week
• Average revenue/seat 390
• Weekly lost revenue 750K (1920 x 390)
• Yearly lost revenue 39M (750K x 52)

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Case Study - SBC Enhanced its Value using
Lucents convergence solution

• Positive Top Line Impact
• Stop erosion / expand customer base and increase
  revenues
• Generate large pull-through revenue streams
• Positive Bottom Line Impact
• CapEx 42 lower than alternatives
• Operational cost savings and efficiencies
• Reclaim valuable floor space in the CO with a
  79 reduction in equipment frames
• Wiring savings in the CO 99 reduction in
  cables installed
• Speeds disaster recovery efforts
• Least Invasive Migration to IP Telephony
• Uses existing OS and craftsperson policies and
  procedures
• Minimal impact on human capital

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Revenue Generating Applications (Consumer and
SME VoBB)
RAS
Applications Platform
Internet
Softswitch
Packet Core (ATM/IP)
SDH Core
XDSL
Softphone
IP Phone
LAN

• Incremental revenue
• from Broadband Customers

Managed Ethernet
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Softswitch As an NGN engine and not Class 5
replacement

• Multimedia services
• Any user - Any service
• Programmability
• Disintegrated architecture
• Traditional network reliability
• Aligned to standards
• Future Proof

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Delivering the vision
Enhanced Business Services
BRAS
RAS
Applications Platform
Internet
5E-XC
Packet where and when it makes sense
Centrex Gateway
TDM
Packet Trunk over Optical
LSS or I-Merge
GX / CBX
Anymedia Access
Packet Core (ATM/IP)
SDH Core
Metropolis Family
XDSL
Softphone
IP Phone
Softphone
IP Phone
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Should SPs deploy Packet?
YES!

• Prepare your network for the future
• LAG, TAG, CORE
• Invest in Packet for new enterprise services
• IP Centrex
• Invest in Packet for cost savings
• Tandem Replacement (TAG)
• Leverage embedded SDH
• Introduce Ethernet services
• Deploy Softswitch for enhanced data service
• VoBB, VoIP VPN , VoIP ILD

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Summary

• NGN Technology for the sake of business
• IP is not a magic potion but will be adapted
  widely in phases
• Embrace IP - Where and when it makes sense
• Use present revenue fund the future network
• Leverage on embedded network - think thru your
  transition plans