Next Generation Networks

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Next Generation Networks

• Z. Dely, A. Czinkóczky
• Matáv PKI

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Contents

• 1. Why NGN? - Incentives of development
• 2. What is NGN?
• 3. NGN Status Expectations/Requirements ?
  Present features
• 4. CEE incumbent operators situation
• 5. Migration options
• 5.1 One step (quick) replacement
• 5.2 Gradual migration
• 6. Impact of NGN on existing networks
• Conclusions

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1. Why NGN? - Incentives of development
Today several platforms of different
technologies for different services ? resources
are shared, ? services depend on technology
(platform), ? multiple networks, connections and
CPEs NGN is an effort to summarise experiences,
concepts and develop those on a higher level
aiming the objectives of integrated multi-service
network set for long ? one network for all
unified technology ? reduce development/operationa
l costs? seamless service delivery service
and platform independence ? flexible service
creation, implementation,...? ubiquitous
network ? one (integrated) connection for
customers, mobility and personalisation Political
objectives of Information Society give a
stimulating environment, generating high,
somewhat enthusiastic expectations Main actors
are the vendors being highly interested ? big
and increasing efforts to develop the NGN
architecture and elements of it? several fora,
organisations are formed? standardising bodies
(ITU, ETSI) are forced to develop related
standards ? A long development process has been
started to change technology and reshape networks
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2. What is NGN?
NGN has many definitions, some very general and
high level - a network that is better than we
have today by being faster, able to support more
services, and in a more integrated way, able to
support multiple levels of QoS, simpler and
cheaper to operate / maintain / manage NGN
Initiative of EU IST - NGN is a concept for
defining and deploying networks, which, due to
their formal separation into different layers and
planes and use of open interfaces, offers service
providers and operators a platform which can
evolve in a step-by-step manner to create, deploy
and manage innovative services ETSI GA Our
understanding based on MSF architecture and
vendors visions NGN is a multi-service
integrated network. First of all, it means a new
network architecture based on new devices, using
new interfaces and protocols. As a network
concept its main elements are? centrally
located service controlling servers and
softswitches,? a packet switched (IP, MPLS)
transport network,? NGN related protocols, ?
management system? fix and mobile access nodes
and network segments are connected to NGN. This
architecture promises a flexible way of service
implementation and an effective network
operation.
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2. What is NGN? /2
Application servers
Application Plane
Softswitches, controllers
Management
Control Plane
IP (MPLS) Core
L2 (Ethernet) Aggregation
Transport Plane
Gw
Gw
Fixed Access
Access Networks
NGN architecture
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2. What is NGN? /3
NGN protocols
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3. NGN Status Expectations/Requirements ?
Present features
Looking back digitalisation was a success in
convergencebut ISDN has reached limited success
in integration ATM based BISDN has failed
flexible service creation promised by IN hasnt
really met. The key step of implementing an
integrated multi-service NGN is when voice is
carried on the common IP transport ? complete
substitution of legacy PSTN - set of services
(POTS, fax, ISDN), QoS, security ? regulatory
obligations - ONP access and interconnection ?
business model - comparing to the present
PSTN/ISDN tariff systems there is the risk of
loosing revenues by flat rate models ?
Functions used in the legacy network shall be
implemented or adapted Capabilities and
standardisation ? IP is the candidate common
key-technology as being simple and cheap, but
many features are week or missing (?IPv6, QoS,
...) ? protocols H.323, SIP, MGCP, are under
development evolutionary stages 1)
proprietary / 2) multi-vendor / 3) standardised
protocols! ? NGN is on the way, first
implementations are offered, but many features
are missing or not matured
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4. CEE incumbent operators situation
As a background there is a general recession in
telecom - debts (UMTS licenses and acquisitions),
price pressure (capacity oversupply), regulatory
risks against developmentit has an investment
limiting impact on CEE operators having foreign
telecom investors Late upgrade of PSTN/ISDN
legacy network has just been upgraded in capacity
and features - digitalisation, CCS7 signalling,
ISDN, IN - capabilities for legal obligations
are recently implemented (CS, NP, )- mobile
(first fostered by lack of fixed lines) has
overcome telephone penetration and became an
almost dominating competitor on the voice
market- ADSL, establishing future of fixed line
network, breaks the rate of ISDN progress ?
Investments shall return, existing assets shall
be utilised. ? PSTN/ISDN demands are
stagnating/eroding, and without need of
investment the main economic driver to spend on
new technology is missing. Motivations/Reasons to
start migration to NGN ? cost reduction is a must
- if replacing a network part by NGN has really
positive result ? competitors - if they attack
market backed by cost advantage and/or offering
new attractive services based on new
technology ? business opportunity - via new
services that can be realised on NGN ?
technology lifespan - vendors gradually stop
developing/producing/supporting existing
technology, this will limit the lifespan of that
(TDM,...)
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4. CEE incumbent operators situation /2
A full set of networks serving voice, narrow- and
broadband data, IP and transmission demands is
operated, as a result of keeping step with market
and regulatory demands- these networks have
significant booked asset value and - useful
life-span of several years remained from the
total life-time (calculated at their
implementation based on experiences and
expectations) - See Table below
Useful life-span year
Relative Net Asset Value
? Life-span of legacy networks makes further
operating without serious troubles a real
option ? Access network - the major part is
narrowband - has a dominant weight - only gradual
change is practical ? PSTN has the biggest share
among platforms ? Expected life-time is
shortening due to accelerated development
Narrowband access network
Metropolitan network
ACCESS
9
xDSL

NB copper network 17 NB OAN 11
58
7
BB data
IP network
NB data
PSTN/ISDN/IN
CORE
8
8
3,5
12,5
Long distance transmission network
40
Rural network
Backbone network
7
10
Central supervisory and inventory systems
2
6
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4. CEE incumbent operators situation /3
General recession, market stagnation and the
necessary cost reduction have lead to the strong
limitation of investments- it results in a
continuous decrease of actual asset values year
by year- meaning that we are eating up earlier
investments ... A turn shall come in the future
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5. Migration options
Migration from legacy networks to NGN may be
raised in two main ways A) One step (quick)
replacement - it is a theoretical approach
supposing that NGN is matured enough and may be
operated with great benefits, justifying
investment B) Gradual migration - a cautious way
to change technology driven by market and
economic factors This two options will be
investigated in the followings.
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5. Migration options /2
5.1 One step replacement Legacy core networks
are completely changed by an NGN network, but
access networks are kept, this needs
implementation of gateways and gateway
controllers Based on model calculations the
Table below shows the multiplication factors for
the main segments compared to the asset values of
the legacy networks before the change, andthe
distribution of asset values among the planes of
NGN
? Value of the whole network increases by 17 -
and the majority of scrapped asset values shall
be added! ? Value of NGN platform compared to
legacy cores is 126 ? Gateways and controllers
have 24 share! - this will be lower as broadband
access is deployed previously ? CPEs are not
involved - it will raise expenses, needed to
exploit new services
Asset Value Share in NGN
Multiplication factor
Narrowband access network
Metropolitan network
ACCESS
x1
xDSL

Control Plane
Application Plane
CORE
7
22
x1,24
Transport Plane
IP Core
L2 Aggregation
22
42
Management Plane
x1,6
7
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5. Migration options /3
Consequences of one step replacement

• Changing the core network will not have serious
  impact on revenues. However, changing the
  narrowband access to broadband may result in
  severe decrease due to direct IP connectivity for
  instant messaging, IP telephony.
• Gradual revenue increase according to growing
  market penetration. NGN related new applications
  may increase the revenues further.
• Gaining market share from CATV
• Strong price competition

Voice revenue Broadband revenue Video
services
Significant total revenue increase is not
expected but the cost impact on the network is
high - Not a realistic scenario
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5. Migration options /4

• 5.2 Gradual migration
• Drivers / enablers
• Aging PSTN network. HW and SW support gradually
  terminates.
• Increasing number of broadband accesses, emerging
  voice traffic.
• Growing IP traffic - exceeding PSTN capacity.
• Increasing number of integrated voice and data
  corporate networks - market drivers are appearing
• Result
• Voice traffic appears and increases on IP
  network, demand for proper capabilities and the
  interconnection of IP with PSTN for voice
  transparency. This leads to implementing the NGN
  infrastructure, however, a long migration period
  is coming while NGN and legacy networks are
  operated parallel.

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5. Migration options /5
Gradual migration pros and cons
Best utilization of existing networks Network
changes are in accordance with market demands No
significant CAPEX impact Improving
competitiveness - costs kept low Less investment
risk Advantage of decreasing device prices
Dramatic cost saving is not possible Low new
service potential
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5. Migration options /6
Possible roadmap Interconnection of two
networks 2002-2004 Customers will migrate
their applications to IP
2005-2010 Remaining customers shall migrate if it
will be economical 2010-
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6. Impact of NGN on existing networks
NGN pros and cons for fixed carriers
- Existing networks can serve the voice demands -
No new service and revenue creation expected in
voice - Broadband access is threatening
narrow-band business Cheaper OM. Less power
consumption, unified operation Saving real
estate costs. Smaller footprints Capability to
enter new market areas - Triple play
IP
Difficult to justify the NGN development. The
first migration step can be the replacement of
transit exchanges. Transit traffic migrates to
packet core Local exchange replacement will be
forced by high cost, and expiring support
DWDM
STM1
STM1
D S L A M
D S L A M
MGW
MGW
DSL
DSL
MGCP
MGCP
POTS
POTS
MGC
V5.2
V5.2
SS7
PSTN
SS7
SDH
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6. Impact of NGN on existing networks /2
NGN pros and cons for mobile carriers
Challenge of 3G - network capacities shall
increase Extending data services generating
additional revenue - 3G is threatened by WLANs
implemented by fixed operators - Closer
cooperation with fixed networks to build
economical core
Development is necessary, but the business model
is uncertain. First implementation step is
introducing GPRS integrated with packet
backbone. Further expected development is the
TDM replacement in the Voice transit, due to
increasing access capacity, and increasing
traffic.
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Conclusions

• Most of todays development of Matáv is NGN
  compatible in every telecommunications segments
• The legacy PSTN development has stopped.
• Key focus is the broadband as a new revenue
  source, this will prepare an easier migration to
  NGN.
• There is no significant driver to introduce a
  whole NGN network, but due to broadband demands
  the IP network is capable to provide the capacity
  and functionality to serve as a unified core
  network - the transport plane of NGN.
• Technology oriented development of NGN is not
  expected. Market and economical requirements will
  determine the speed of NGN development.