Next Generation Networks Munir Cochinwala [email protected] 973-829-4864 An SAIC Company.

Next Generation Networks

Munir [email protected]

An SAIC Company

NGN Solutions v7 – 2

Basic Cable

Premium Services(Tiers, Pay Services, IPPV,

VOD, etc.)

Internet Access

Telephony

Services2001 Consumer

Spending

$26.68 billion

$10.32 billion

$11.6 billion

$48.63 billion

Source: Kagan Associates, Yankee Group

Consumer Spending

Total $97.23 billion


The NeedVoice Service Price Erosion and Market Share Loss is Accelerating the Loss of Voice Revenues

-20% -27% -31% -33% -40% -40% -47% -71%

-80%

-60%

-40%

-20%

0%

USAAus

UK

Japan

Swed

enChile NZ

Ger

man

y

Source: The Boston Group

Change in Long Distance service price one year after liberalization


Data Will Dominate the Network

0

10

20

30

40

50

60

70

80

90

100

1 2 3 4 5 6 7 8 9 10

% Data

% Voice

0

10

20

30

40

50

60

70

80

90

100

1 2 3 4 5 6 7 8 9 10

% Data

% Voice

% of Network Bandwidth % of Network Bandwidth

Year Year

45 % Annual Data Growth 100% Annual Data Growth

With voice growing at 8%, in 5-10 years, voice will be a small minority of network bandwidth. The optimal strategy for the future may be to handle voice as much as possible like data.

Data DATA

Voice Voice


Merging the Voice and Data Worlds

Circuit Switching TDM transport High reliability & security Limited programmability Time sensitive billing Slow service set-up Dumb phones Telephony services

Packet Switching Intelligence at “edge” Lower reliability & security Innovation in PC and

enterprise applications Flat rate or bandwidth

pricing Hard to achieve quality Smart PCs

Single infrastructure Packet Switching Intelligence throughout

(distributed / collaborative)

High reliability, security & controlled QoS

Innovative business to business applications

High value service bundles Instant self-provisioning Smart appliances


What is a Next-Generation Network?

Single Integrated Pipe

Video

High-SpeedData

Voice/Fax

Services

“A network where all kinds of information (voice, fax, video, data) are transported uniformly using packet-based transport and switching media.”

“A network where all kinds of information (voice, fax, video, data) are transported uniformly using packet-based transport and switching media.”

HFC (Cable) Network using DOCSIS transportATM or IP Over xDSL Lines

Fixed Wireless


Why a Next-Generation-Network?

Using IP, operators can create an integrated multi-service communications platform– Lower cost structure than competing switched alternatives

which enables aggressive price discounting without sacrificing margins

Flexibility of IP networking allows delivery of value added features– Real-time provisioning of additional lines– Integrated voice mail, data services, etc.

Enables bundling with existing service offerings NGNs and the PSTN will co-exist for years, making true

interoperability essential


The NeedBundled NGN Services Can Provide Higher Marginal Profits

2nd POTS

Traditional Network: ADSL Access From

a Telco

40

80

100

140

$180Per Month

First POTS

Video

Internet

CaTV

Internet

NGN: VDSL Access From a

Telco

NGN: HFC Access From a CaTV Company

Incremental Costs include incremental equipment and plant, installation costs,incremental operations costs and TV content (for Telco) costs.

Bundled Services -- Over a Single Network -- Produces Better Economics!Bundled Services -- Over a Single Network -- Produces Better Economics!

Incremental Incremental RevenueRevenue

Incremental Incremental CostsCosts

Net Net ProfitProfit

Existing Existing RevenueRevenue

2nd POTS

First POTS

Internet

2nd POTS

First POTS


NEXT NEXT GENERATIONGENERATION

NETWORKNETWORKPROVIDERPROVIDER

VOICE

AUDIO

HIGH SPEED DATA

LOW SPEED DATA

VIDEO

TELEVISION

OTHER

SINGLE INTEGRATED INFRASTRUCTURE

Video on DemandE CommerceSOHO/TelecommutingAdvertising Residential Applications

ERP/IRP SolutionsUnified MessagingWeb Assisted Call CentersSmall Business Infrastructure

Business Applications

The NGN Service and Application Model


Next Generation Network - Traditional and New Services

Traditional Services• Two to Four POTS Lines• Fast Internet Access• On-Net Long Distance• Advertising

Work At Home• Virtual Circuits for Phone and PC• Professionals• Distributed Call Center Applications

The Long-Term Vision: A Programmable Network with a

Software Developers Tool Kit to buildLots of New Integrated Voice/Data Services

Traditional Services Pay for the Network,New Services Fuel the Growth!

Internet Voice Applications• Click to Talk• Internet Call Waiting• Wireless Data• PC Call Center with Voice / Internet• “Rent an App” (e.g., PC Blackboard)

Dial Tone II• Java Ring Contains Your Identity• “Instant” Access to Email and WWW• Always On; No Wait!


Traditional Telephony

Typical call - – user dials number– trigger in switch specifies if look-up (translation) is needed

(600, LNP)– Query sent to centralized database

Centralized servers (Intelligence) (~45 servers)– Providers share cost….share ownership– Each server configured for masimum of 1500 reads/sec– Updates mostly from centralized management system

Dumb endpoints (Telephones) Intelligent Endpoints

– Switches (difficult to program) New services introduced by trusted providers


NGN

Multiple numbering systems – IP, Phone, Universal Numbers

Distributed Intelligence– Databases in central servers, Provider database, Customer PC,

Phones– Central global database does inter-provider translation

On-net to off-net calls return IP address of destination gateway

– Central Database is ‘shared’ by providers– Transaction volume

At central db, number of inter-provider calls At services databases (800, call-blocking lists, …) number of subscribed

services At Provider and endpoints


NGN

Network Repositories – User data (profiles, lists) in multiple devices and databases– Central Server provides reliability– Updates to devices synchronized on re-connect – Synchronization on demand or periodically:– Local databases are caches– User mobility

Where should translation take place Should cache migrate Real-time constraints

– Transaction volume across devices, endpoints...


NGN

Directory Enabled Networks (Cisco)– LDAP interface to network resources– Schemas for network resources– Used for resource allocation for network services

Warehouses– Traffic warehouses– Equipment Inventory warehouse– Warehouse used for capacity management, billing, SLAs, ...


NGN

Object based services– Calls abstracted as object– Call models implemented within objects– Object mobility used to implement services

Call forwarding Third party call set-up

Objects for service creation– Tool-kit for third party service creation– Base Objects/components upon which to build

Device Independence– Migrate calls across device– Compose services across devices


Summary

NGN (competition) has forced – Distributed intelligence– Low-cost solutions

Telephone Providers want to jump on the dotcom bandwagon

Only a few (2-3 of current Telephone providers will survive


NGN Target End Customers

Small (2-99 employees) Business – Spend an average of $220/month on

telecommunications services Medium (100-499 employees) Sized Business Market

– Spend an average of $2,800/month on telecommunications services

Both segments are vulnerable to competition– Require a bundle of telecommunications services

Multiple telephone/fax lines High-speed Internet access Etc.

– Only 62% report “loyalty” to their incumbent LEC– Highly receptive to better, more complete offerings from

competitive carriers Source: The Yankee Group


Large (500+ employees) Sized Business Market– Spend more than $3,000 per month on telecommunications

services– Campus telephony and data networks often provided by

on-site resources and staff– Require advanced wide-area network (WAN) data services

and trunks from enterprise telephony networks– NGN services will focus on

Cost containment with bandwidth aggregation and self-service provisioning

Work-at-home services for telecommuters Advanced “follow-me” services for road warriors and office

hoteling Mixed voice/video/data services for advanced communication,

marketing, and customer service applicationsSource: The Yankee Group/Forrester Research

NGN Target End Customers - Continued


SDK

3rd Partyor

Customer

3rd Partyor

Customer ProviderProvider Telcordia Telephony

and Data Services

Telcordia Telephony

and Data Services

800LNP

ISUPSGCPQ931

UNI4.0

Feature Layer Protocols & State Machines

Service Layer Protocols & State Machines

COMMON CALL PROCESSING

Service LayerWorkhorse Layer

Feature Layer

Connection LayerCommodity Layer

Connection Layer Protocols

& State Machines

Distributed Object Architecture

Standard Interface

The Gold

UNI 4.0 UNI4.0 Proxy

SGCP

Other


MGCP

TCAP/SS7ISUP/SS7

SS7Gateway

ISCPISCP

CustomerCare &Billing

NetworkOSSs

API

ServiceApplets

ServiceExecution

GUI

JAVAService

Definition

NGN - Network Example

MG

CP

MGCP

ApplicationServers

DOCSISCMTS

Video

Data

PacketizedVoice

TelephonyGateway

PSTN

800

CNAM

LNP

Others

PublicSignalingNetwork

ResidentialGateway SG

CP

Call Agent

MG

CP

AnnouncementServer

AnnouncementServer

Unified MessagingVideo Servers


Next Generation Network - Layered Architecture

ServiceService

PlatformPlatform

BackboneBackbone

AccessAccess xDSL Cable FixedWireless

IP ATM SONET DWDM DOCSIS

WebDashboard

SS7 (TCAP

& ISUP)

Accounting Gateway

Announcements OA&M

ClassicPSTN

Customer- Provisioning- Activation- Programmability

Service Definition

Service Execution

Differentiators

Next Generation Networks Munir Cochinwala [email protected] 973-829-4864 An SAIC Company.

Documents

data data voice slide

ngn solutions v7

voice internet

telco ngn

pots slide

internet voice applications

need bundled ngn services

single network