Next Generation Networks

1
Next Generation Networks

Munir Cochinwala munir_at_research.telcordia.com 973-
829-4864
An SAIC Company
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Consumer Spending
2001 Consumer Spending
Services
Basic Cable
26.68 billion
Premium Services (Tiers, Pay Services, IPPV,
VOD, etc.)
10.32 billion
11.6 billion
Internet Access
Telephony
48.63 billion
Total
97.23 billion
Source Kagan Associates, Yankee Group
3
The NeedVoice Service Price Erosion and Market
Share Loss is Accelerating the Loss of Voice
Revenues
Change in Long Distance service price one year
after liberalization
Source The Boston Group
4
Data Will Dominate the Network
of Network Bandwidth
of Network Bandwidth
100
100
90
90
80
80
Data
DATA
70
70
60
60
Data
Data
50
50
Voice
Voice
40
40
30
30
20
20
Voice
Voice
10
10
0
0
1
2
3
4
5
6
7
8
9
10
1
2
3
4
5
6
7
8
9
10
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.
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Merging the Voice and Data Worlds
Next Generation Network
Voice World
Data World

• 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

• 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

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What is a Next-Generation Network?
Services
Video
High-Speed Data
Single Integrated Pipe
HFC (Cable) Network using DOCSIS transport ATM or
IP Over xDSL Lines Fixed Wireless
Voice/Fax

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

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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

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The NeedBundled NGN Services Can Provide Higher
Marginal Profits
Bundled Services -- Over a Single Network --
Produces Better Economics!
NGN HFC Access From a CaTV Company
Traditional Network ADSL Access From a Telco
NGN VDSL Access From a Telco
180 Per Month
Existing Revenue
140
Incremental Revenue
Video
CaTV
Incremental Costs
100
80
Internet
Internet
Internet
Net Profit
2nd POTS
2nd POTS
2nd POTS
40
First POTS
First POTS
First POTS
Incremental Costs include incremental equipment
and plant, installation costs, incremental
operations costs and TV content (for Telco) costs.
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The NGN Service and Application Model
VOICE AUDIO HIGH SPEED DATA LOW SPEED
DATA VIDEO TELEVISION OTHER
SINGLE INTEGRATED INFRASTRUCTURE
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Next Generation Network - Traditional and New
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 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 build Lots
of New Integrated Voice/Data Services
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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

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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

13
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...

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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, ...

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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

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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

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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
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NGN Target End Customers - Continued

• 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
  applications

Source The Yankee Group/Forrester Research
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Distributed Object Architecture
COMMON CALL PROCESSING
Feature Layer Protocols State Machines
3rd Party or Customer
Telcordia Telephony and Data Services
Provider
SDK
Feature Layer
The Gold
Service Layer Protocols State Machines
ISUP
Service Layer Workhorse Layer
SGCP
Q931
UNI4.0
Connection Layer Commodity Layer
Connection Layer Protocols State Machines
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NGN - Network Example
ISCP
Service Execution
GUI
Service Definition
JAVA
ServiceApplets
TCAP/SS7 ISUP/SS7
SS7 Gateway
Call Agent
Customer Care Billing
MGCP
Announcement Server
Unified Messaging
Video Servers
Network OSSs
MGCP
Telephony Gateway
Packetized Voice
MGCP
DOCSIS CMTS
MGCP
Application Servers
SGCP
Residential Gateway
Data
Video
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Next Generation Network - Layered Architecture
Service
Differentiators
SS7 (TCAP ISUP)
Accounting Gateway
Platform
OAM
Announcements
ATM
SONET
DWDM
DOCSIS
Backbone
Access