Colombo, Sri Lanka, 7-10 April 2009 Next Generation Access (NGA) Technology and Regulatory Issues Satya N. Gupta, Chief Regulatory Advisor BT Global Services-SAARC.

Colombo, Sri Lanka, 7-10 April 2009

Next Generation Access (NGA) Technology and Regulatory Issues

Satya N. Gupta,Chief Regulatory Advisor

BT Global Services-SAARC Region

FORUM ON NEXT GENERATION STANDARDIZATION

(Colombo, Sri Lanka, 7-10 April 2009)


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Agenda

Next Generation Network Architecture – Layered approachNext Generation Access (NGA)NGA – Superfast BroadbandNGN Regulation – UK ApproachEnabling Regulation for NGA


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NGN – a layered architecture distributing intelligence at every layer

Application Layer

ControlBearer

Service Control Layer Softswitch

ControlIP ServiceSwitching

ApplicationServices

Transport Layer(core and access)

PSTN

Internet

MultiservicePacket Switching

XX X XX

CORE NETWORKS

XNational Optical

BroadbandAccess

GbEGbE

DSLAMDSLAM

ACCESSNETWORK

RASRAS

Frame/ATM

Frame/ATM

WirelessWireless

CPECPE

Media Gateways

Metro Optical

X

XX

X


4Source: ASTAP05/WS-IP&NGN/13

Practical NGN architecture


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Technologies for Next Generation Access (NGA)

Regulatory issues to be

resolved

Regulatory Impact

0.4 Mbit/s

0.8 Mbit/s

10 Mbit/s

24 Mbit/s

ADSL2+

~£600/line£200 £400/line

Cost of Deployment

15 Mbit/s5 Mbit/s0.4 Mbit/sUpstream Typical

50 Mbit/s10 Mbit/s0.8 Mbit/sUpstream Headline

30 Mbit/s20 Mbit/s5 Mbit/sDownstream Typical

100 Mbit/s40 Mbit/s8 Mbit/sDownstream Headline

FTTP(All homes)

FTTC (+VDSL)

Now


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PSTN

Leased lines

ATM

Copper

Fibre

DSL

PSTN

SDHaccess

PDH access

K Stream

End

User

~ 5.5ksites

~ 2ksites

~ 1ksites

~ 400ksites

~ 100ksites

~ 15ksites

SDH VC-4

PDH

SDHVC-12

IP

PDH access

BT UK’s Current Network


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UK Access Today

E-side Cables

LocalExchange

(5.6k)

TelephonePole~8m

Customer Home~26m

OverheadDistribution

UndergroundDistribution

Backhaul

D-side Cables

StreetCabinet

~90k

Core network

Core network Current LLU

demarcation point

~ 4m Distribution Points(Lines split almost 50:50

between overhead & underground)

ADSL1

0.4 Mbit/sUpstream Typical

0.8 Mbit/sUpstream Headline

5 Mbit/sDownstream Typical

8 Mbit/sDownstream Headline

Today’s

Broadband


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End User

-5.5k sites

-100 sites

Multi-service access Converged Core

Copper

Fibre & Copper

Content ISP

WWW

Class 5 Call Server

Wireless

IP-MPLS-WDM

Next Generation Simplified Network BT’S 21CN


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Access Tomorrow

UndergroundDistribution

OverheadDistribution

Fibre-to-the-Premises (FTTP)

Fibre

BackhaulCore network

Core network

Cu/ Wireless

8 Mbps

FTTC 20 Mbps

FTTP >50 Mbps

FTTP “Cut-Over”• Being planned for “Greenfield”• Single, high-quality network• Big investment, big savings• Paves the way for super fast future…

Fibre

Fibre


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2004

2005

2006

2007

2008

2009

2010

2011

BTs 21CN vision announced. Consult21 launched. Converged network architecture developed.Voice transformation trial underway

Industry engagement via Consult21 gains pace. Strategic vendors announced.First service launches based on reusable capabilities

Strategic vendor contracts signed. UK migration plan announced. Part of the IP/MPLS core network in place. Migration control centre established. Comprehensive testing and trials. End user communications strategy enacted. End user migration begins

~50% of UK broadband services delivered over 21CN

UK wide migration to 21CN begins. Next generation broadband product available to ~50% of UK. > 15% of PSTN lines migrated

Next generation broadband available to >16m end users. ~ 65% of broadband and ~50% of PSTN lines migrated

Next generation broadband available to >20m end users.21CN migration substantially complete

21CN completes

21CN – Key Milestones


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New Era of NGN Regulation Promoting Investment and Innovation

BT’s Undertakings offered in lieu of reference to Competition Commission in September 2005Regulation to be focused on bottlenecksIncentive to invest in NGNs and InnovateExpectation of reduced regulation downstreamPromote infrastructure-based competition Benefits the consumers, operators and UK economyIncumbent to compete fairly on a level playing field

Creating a climate of confidence for infrastructure Competition, Investment and

Innovation


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Ex-ante regulationApplies to defined markets where a communication provider has Significant Market Power (SMP)Provision of network access/interconnect, non-discrimination, cost-oriented prices, etc.

BT’s Undertakings – NGN specific sectionNo foreclosure of network access without consultationCharges to be based on efficient network designNetwork access to be provided on Equivalence basisIndustry group to agree transition to NGN interconnectCompensation arrangements

Regulatory Context in the UK


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Regulation and NGN – Key Issues

Investment – “Regulatory certainty”

NGNs are driven (in part) by cost savingsInvestment requires demonstrable shareholder value

Regulators face a difficult challengeNo one can “build it and they will come” on revenue betNGNs/NGAs are disruptive to traditional boundariesThey challenge past regulatory assumptions(e.g. thin & dispersed vs. fat & fewer interconnect, minutes & miles vs. capacity & QOE)

Regulation needs to become simplerRequires collaboration amongst incumbents, regulators and Competitive communications providers.Over regulation could restrict converged service innovation


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BT’s Consulation Approach Consult 21

Consult 21 launched Summer 2004Largest voluntary consultation of its kind ever undertaken in our industry 650 people from industry involved

Remit is open and transparent consultation with wholesale customers (CPs)Director recruited from a CP 10 Working Groups, including:

Product Migration from 20CN to 21CN(E.g. PSTN Interconnect, Broadband, Ethernet)21CN Migration ManagementCommunicationsCommercial

Each WG has BT and Industry Co-ChairsIndustry Steering Board (Ofcom monitors)All proceedings published on the Internet


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Functional Separation - Wholesale Concept


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Next Generation Broadband:A bold vision for the UK

UK’s biggest super fast broadband investment: £1.5 bn

Accessible by up to 10 million homes by 2012

Range of speeds up to 100mbps: with >1,000mbps potential

Basis for nationwide demand led roll out

World’s most open super-fast network

Need for the barriers to investment being removed

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Building on Success

UK has world leading availability & take up…

• BT’s multi-billion pound investment has ensured everyone can be part of the broadband revolution

• 10 million kilometers of fibre already in the network

• 120,000 businesses have fibre to the premises

• 10 million people work from home using broadband

• Higher take up in rural areas than in cities

…and provides massive choice to consumers

• Massive customer choice from 200 ISPs

• Among the lowest prices in the world

• Opportunity to learn from the experience of others

• All fibre based services from BT will be wholesaled to other ISPs

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The Next Chapter: a ‘mixed economy’ model

• ADSL2+ roll out makes speeds of up to 24 Mbps available to 40% population

• Widespread access to ADSL2+ and speeds of up to 24 Mbps

2008 FY*

• Fibre roll-out brings range of speeds up to 100Mbps

• Fibre available to up to 10 million families

• Olympic village, a fibre showpiece case

Enhanced copper Fibre

• Fibre to the home in Ebbsfleet

• Operational trials of fibre to the cabinet

• Fibre available to millions of homes and businesses

• BT backhaul investment reduces network bottlenecks

2010 FY

2012 FY

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*2008FY = 08/09 financial year

• Continuing to develop technologies to enable faster speeds and more services


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What it means for consumersTODAY… TOMORROW…

Fast internet...

Instant messaging…

VoIP…

BT Vision…

iPlayer…

Multi viewing High Definition TV...

Advanced High Definition gaming experience…

High Definition video conferencing…

A world of new possibilities from super-fast broadband Virtualisation, Cloud Computing, Collaboration

…But growth of simultaneous usage raises potential peak bandwidth issues for the future

…Assured high quality experience even with simultaneous usage of all new high speed applications and services

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http://img.hypemedianetwork.com/_link.proxy/?u,2=aHR0cDovL2JwMi5ibG9nZ2VyLmNvbS9fY2JYSzkwSEJkZncvUmZQMjhrUXI4S0kvQUFBQUFBQUFBQ3MvVTRPZklHZWFCeTAvczE2MDAtaC9idC12aWRlb3Bob25lLmpwZw==

http://img.tomshardware.com/us/2004/08/05/hdtv_basics_explained/hdtv.jpg


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What it means for businesses

• Bringing big business fibre services to smaller businesses: speeds > 1 Gigabit

• Improved choice in access speeds providing UK businesses with a competitive edge

• Improved flexibility in remote and home working

• Two way speed allowing collaboration across locations between customers and suppliers

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Removing the barriers to investment

the chance to earn a fair return if investment is successful

principle based regulation that avoids red tape

removal of outdated rules, such as having to deploy copper cables in parallel to fibre

assurance that other UK companies will wholesale their fibre services just like we will

freedom from responsibility for other operators’ past investment

We need to have…

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Next Generation Broadband for the UK

• The UK already has world leading availability

• The UK already has world leading take up

• BT wants to give the UK world-leading speeds and capacity through Next Generation Broadband

• The UK already has world leading competition and prices

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Enabling Regulatory Initiative for NGA Ofcom (UK)

Allowing wholesale pricing flexibility- Enabling ROI appropriate to risksMinimizing efficiencies in Network Design- Forbearing Technical RegulationSupporting use of new and more flexible wholesale servicesSafeguarding the opportunity for further infrastructure based competitionSymmetric Regulation for all new infrastructure(Mandated Sharing)


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THANK YOU

Satya N. [email protected]

Colombo, Sri Lanka, 7-10 April 2009 Next Generation Access (NGA) Technology and Regulatory Issues Satya N. Gupta, Chief Regulatory Advisor BT Global Services-SAARC.

Documents

sri lanka

cn slide

uk access

nga slide

foreclosure of network

innovation slide

layer slide

generation broadband