AsiaDriving the New Telecom Revolution

1
AsiaDriving the New Telecom Revolution

Net Events
Mathew Oommen October 9th 2003, Nice France
2
Telecom Environment
3
The Network Trend

• Ensure that communication is not a Luxury but a
  basic necessity that every household can afford.
• Technologies and systems to break barriers to
  offer cost-effective and customer centric
  solutions
• People, Processes, Operating Support Systems and
  their integration is key.
• Are we finally listening to the Customerconsumer
  power and recognizing that is key.
• Still selling Connectivity?
• Translating technology into high quality,
  differentiating services efficiently utilizing
  capex, reducing opex and meeting users demands at
  affordable price points.
• Simple technologies offering Disruptive Services
• Using bandwidth and technology to bridge the
  communications gap
• Key Factorsto be a Service Provider
• Reachability, Connectivity, Reliability,
  Manageability and Affordability

4
Service Provider Needs

• Reduce network (equipment) operational costs
  via
• Innovative technologies
• New architectural approaches
• Consolidation of functionality
• Increased competition by use of standards
• Improve network efficiency
• Automate provisioning processes
• Increase revenues via
• Enabling quickly deploying new customized
  services
• Improved service velocity
• Service differentiation
• Provide end-end Service Management and visibility
• Managing Customer expectation and improving
  customer satisfaction

5
Service Provider Challenges

• How the Network is Built is Important as What is
  Used to build it.
• A new set of network service and management
  capabilities
• Dynamic and adaptable, re-configurable
  intelligent end-end Network
• Technology Bets That Deliver On the Network and
  Service Requirements
• Translating Technology Innovations to meet
  Network Customer Requirements
• Aligning Network Planners with Financial Planners

6
Network Evolution
Time
Mobile
LeasedLine
Fixed Wireless
Mobile
FR/ATM
Other Broadband Access
PSTN
Integrated Packet Architecture
PSTN
Optical
Broadband Services
FTTH FTTC
Cable Mobile
Dial-Up Internet
High-Speed Internet
6
6
6
7
The Broadband Access Options
Cable
DSL
Ethernet FE or GE
FTTC/FTTH
Wireless
8
Ethernet Universal Aggregator And The First
Mile Enabler
Aggregation Devices
Network Interface
User Interface
CPE
xDSL w/voice
Converged to Ethernet
DSLAM
E-Line E-LAN
Ethernet Access
Ethernet For Data, Video, Storage
IP/MPLS
CMTS
CABLE
OLT
Ethernet Aggregation Platform
PON
Ethernet
Router
IP
SAN
Storage
Voice Gateway
POTS/PBX
TDM For Voice
Wireless 3G
Base Station
9
A simplified Packet Network Model
Source Epoch Partners
10
Broadband Access Network
Service PoP
CDN Svcs
Service mgmtt
Access Aggregation
Core Pop
Customer Access
Internet Access Svcs
IXC/ Integrated Network
Metro Aggregation
Access
Service Delivery
Building Aggregation to Metro Aggregation Network
11
A typical ArchitectureEnsuring Service
Adaptabilityand Reliability
IP/MPLS core Backbone
Metro Aggregation Ring (nGE)
DWDM Metro Backbone Ring (n10GE)
Metro Head End
Building access Ring (GE)
Building node
12
Connectivity Services to Managed Services
Managed Content Networking
Managed Mobility Services
Managed Voice/IP Telephony
Managed VPN
Managed Firewall
End-to-end Managed Value Added Services
Managed Connectivity
Connectivity
The key is building a connectivity architectural
base to enable delivery of higher value services
13
Network and Service ManagementKey to Ethernets
Operational Acceptance

• Reliability
• 50ms Protection
• No Spanning Tree
• MPLS Fast Reroute

• SLAs / QoS
• Connection Oriented Svcs
• End to End CIR and EIR
• Guaranteed end to end SLA
• Integrated Customer Network Management (CNM)

• Scalability
• VLAN Limitation
• Services Mapping
• Optical Integration
• Flexible Services Creation

Carrier Class Ethernet

• Interoperability
• Multi vendor networks
• Integration with Core network

• Manageability
• Fast service creation
• Integrated third party management
• Carrier class OAM capabilities

• Integrated TDM?
• Seamless integration of TDM
• Support existing voice applications
• Tested and Proven with large ILECs

• Security
• Demarcation Points
• No VLAN leakage, MAC explosion

14
Service Providers dilemma or Vendor intentions
802.1Q
VPLS
EoMPLS
CWDM/ DWDM
SONET/ SDH
VLAN Stacking
DPT/RPR
L2 Interworking

• Choose the right technologies and features
• Understand what the customers expectations are
• Understand the cost of building, managing and
  operating

15
Service Differentiation
Customer A Profile
Customer B profile
Best Effort Plumbingto Move Bits!
Building Blocks Network Meeting Customer Needs
16
Network Management Critical to Service Assurance
Order Management Service Profile Mgmt
Customer Interfaces
POI Gateway
Integration Workflow
Administrative Inventory
Billing
Real Time Inventory and Activation
Fault Management
Performance Management
Element Management Systems / Network Elements
17
Service Velocity with Service Mgmt and QoS
Self healing network.

• Point and click provisioning of services with
  differing Priority Levels
• Supports automated constraint-based routing
  explicit routing
• Service templates simplify provisioning and
  differentiation of optical services
• Mitigates IP Traffic Forecast Uncertainty

18
North American market

• Regulations and Bell companies stifling users!
• Aggressive cable and wireless deployments forcing
  RBOCs to rethink?
• DSL and A-PoN the new RBoC FTTX initiative are
  they on the right track
• RBoCs playing a waiting game smaller providers
  and CLECs trying to survive
• Competition and incentive will hopefully change
  mindset towards broadband
• Good thing Capes to Revenue ratio has improved
  (2003 SP Capex estimated at 48.9billion)
• For vendorsmost of the Revenues are from
  Wireless revenues in Asia

19
Optical Ethernet Strikes Asia!
The ubiquity, flexibility and simplicity of
Ethernet
combined with
The reach, scale and reliability of Optics
TechnologiesMade in USA used in Asia
20
Ethernet Consumption Projection
(source Infonetics)
21
Asia-Pacific Market Place

• Metro Ethernet Deployments and adoption are
  especially driven by residential market demand
• High population density in majority of cities and
  government infrastructure investments and
  legislation are contributing to the deployments
• Demand is driven by multi-media applications
• Streaming Video Applications
• Internet Access
• Availability of Bundled Voice Services

IDC predicts Asia-Pacific deployments to drive
87 of Worldwide Ethernet Internet Access Service
Revenues. Asia and Europe in the Leadway ahead
of North America
RHK states that Asia-Pacific Carriers will
continue to lead the world over the next years in
Ethernet equipment investment and service
deployment
22
AsiaWhere the communication Revolution is
happening
It comes back to the old axiom People pay for
entertainment,'' said P.J. McNealy, research
director of GartnerG2, a research firm in San
Jose. That goes back to even the days of
depression, when the movie industry thrived.
Theaters boomed.''

• Per capita income is as low as 350

200 million people

• About 10 of households have an income of just
  over 1400/month

purchasing power parity - PPP

• A user willing to spend 5 of income on
  communication and entertainment needs

14B Addressable Market
23
What is Driving the Bandwidth?
India produces greater than 1200 movies a year in
more than 50 languages and greater than 3000 TV
serial episodes a year and a CAGR of 27 Ministry
of Information and Broadcasting
Video Entertainment Services

• DTT Digital Terrestrial Television
• Free to Air or broadcast
• Pay to Air or premium
• Web based TV
• Video Fiber Transport
• Transmission of broadcast TV between Television
  Switching Centers
• Production Services
• Production services including tagging, editing,
  integration and conversions

24
What is Driving the Bandwidth?
Online gaming represents an enormous market. By
2005, Forrester Research Inc. predicts that
nearly 50 million households will take part in
pervasive gaming, with 30 of these households
being in Asia.
Online Gaming Services

• Broadband Gaming with
• Multiple real-time players
• Added movie and music hooks
• Creating Virtual Gaming Rooms
• Follow up to the trends in virtual chat room
• 43.5 million - Advanced Gaming Consoles
• 6.3 million - Digital TV Set-top Boxes

25
What is Driving the Bandwidth?
Today, well over a billion televisions, over 400
million VCRs, over 100 million DVD players, and
over 40 million digital set top boxes are in
service worldwide
Video On Demand
The predicted 18 million digital set top box
shipments globally by 2006 implies that 12 of
the movies on video viewing devices are digital
set top boxes with a CAGR of 27

• Increase in set top box growth
• Entertainment on demand as household are more
  crunched for time
• Value added services for the set top box

Online Music/Video Sharing
Birds-Eye.net
Legalize karzaa, Napster et al
26
Indian Market

• Nascent market
• 5 million dial-up users
• 36 million fixed line phones
• Ready for broadband
• Success is based on affordability and customer
  need
• (5 million CDMA 1xRTT subscribers in 5 months)

27
Summary

• How a network is put together is equally as
  important as what is in the network
• Innovation and Integration along with the Fusion
  of OSS.
• Redefining price structures and service
  offeringstranslating technology bets to NW
  Customer benefitscustomer centric networks
• Fiber to the Building Control over the Access
  and Metro enhances service reliability and
  availabilityincluding manageability
• Integrated serviceseconomies of scale
• Success is in, understanding convergence
  economics