VoIP Next Generation Networks and VoIP

(1)

Information

and Communication Networks

(2)

Next Generation Networks and VoIP

n

The Market Situation

n

Next Generation Networks (NGNs)

n

NGN and VoIP Architecture

n

A Business Case

(3)

Next Generation Networks and VoIP

n

The Market Situation

n

Next Generation Networks (NGNs)

n

NGN and VoIP Architecture

n

A Business Case

(4)

Key issues for carriers

n

Cope with deregulation

n

Maximize return on assets

n

Reduce operating expenses and total cost of

ownership

n

Generate new revenues

n

Restore profitability

n

Escape the “abyss of debt“

(5)

Debt load drops carrier ratings

Rating trends (Moody’s):

British Telecom France Telecom

Deutsche Telekom

KPN

9/1999 2002

AAa1

Aa2

Aa3

A1

A2

A3 Baa1

Baa2

Baa3

2000 2001

n Net debt of selected carriers in 2001 (US $)

Deutsche Telekom 58“4 France Telecom 58“1

(6)

20002) ₂₀₀₁2) ₂₀₀₂2) ₂₀₀₃2) ₂₀₀₄2)

1999 0 0.02 0.04 0.06 0.08 0.10 0.12 0.14 0.16

Revenues are not keeping up with traffic

Revenue per unit of Internet data will decline

from 4 cents to 0.5 cents per megabyte

Internet1)

Private line

Switched non-IP data

Long-distance voice

(7)

Next Generation Networks and VoIP

n

The Market Situation

n

Next Generation Networks (NGNs)

n

NGN and VoIP Architecture

n

A Business Case

(8)

ATM

History - Towards Next Generation Networks

Circuit Switched (Fixed Bandwidth)

Wire

Switching

Channel

Switching (STM)

Packet Switched (Variable Bandwidth)

Virtual Channel

Switching (ATM)

Connectionless

Packet Switching (IP)

Public Switched Telefone Network (PSTN)

High

Speed

Interconnection

Internet, IP based

networking

Generation

(9)

NGNs are driven and enabled

by technological progress

Public Switched Telefone Network (PSTN) High

Speed Interconnection

Internet, IP based networking

ATM Next Generation

Networks (NGNs)

NGNs are driven and enabled by technological progress …

n

affordability of performant personal computers drives demand

for simple, cost efficient and easy to use data communications

and information access,

n

HW based packet forwarding enables wire speed operation of

high speed router interconnection links,

n

high speed routing enables a variety of existing and new

services and applications to be created and delivered via

internet technology based infrastructures,

(10)

NGNs have to support several service models

The Internet service model

Access n

peer to peer control

n

ISP does AAA and provides

IP address

n

features and functions

hosted in terminal

n

uncontrolled, resource

shared ´best effort´ network

Internet

ISP

AAA and

IP Address

The telecommunications

service model

Access

n

control by service provider

n

service provider acts on

behalf of user

n

features and functions

provided by feature server

n

controlled, ´guaranteed´

resource network

Service Provider Feature

Server

(11)

NGNs are a convergence platform for existing

services, service evolution and future new services

Telecommunication

service evolution

n

more bandwidth (e.g. high

quality video, ´virtual presence´)

n

true real-time, interactive

(dialogue) communications

n

´carrier grade´ network

properties and behaviour

n

predictable number of long-lived

data flows

Telecom Network

Internet service evolution

n

more bandwidth (e.g. high

speed web surfing)

n

service differentiation (e.g.

gold, silver bronze)

n

additional requirements (e.g.

reliability, security, ...)

n

multitude of short-lived data

flows

Internet

(12)

NGNs and existing networks

Will NGNs replace existing networks?

If NGN technology can keep up to the promises and is

matured and available in time, it may absorb and replace the

traditional (best effort) internet within less than a decade.

n interoperability is not critical due to similarity and

commonality of principles and mechanisms

n fast growth of internet traffic leads to very short

turnaround times of related equipment

n ´better service´ and reduction of operational cost

are also desireable for the internet Internet

n a huge base of telecommunications equipment is

installed and operating satisfactorily

n introduction of NGN technology has to be justified by

new service capabilities (broadband?) and/or significant reduction of operational cost

n interoperability is provided through (voice) gateways

Telecom Network

(13)

Next Generation Networks and VoIP

n

The Market Situation

n

Next Generation Networks (NGNs)

n

NGN and VoIP Architecture

n

A Business Case

(14)

Next Generation Networks:

A new architectural paradigm

PSTN Switch

Line Card Trunk I/F Trunk I/F Line Card

Switching matrix

Call Processor, SS7 Processor Maintenance & Administration

SS7

Distributed MSF* Architecture

n

Open platforms

n

Open interfaces between all

components

n

Softswitch provides Trunk- and

Local-Switch features

n

Gateways support various media stream

conversions

n

Integrated functionality

n

Proprietary platforms and partly

proprietary feature development

n

Standard IN interface for

(15)

Convergence: Adding the power of

IP to the existing communications infrastructure

IP network

Multiservice

Access

Multiservice

Access

Data

MGCP

Call

Control

&

Applications

MGCP

Media Gateway

SS7

Switch

SS7

Voice

Voice&Data

PSTN

(16)

LE Trunk LE

gateway

Trunk gateway Softswitch

SS7 SS7 over

IP

MGCP/MEGACO

SS7

Signalling gateway

VoIP Virtual Trunking

Intra-Domain Connections

IP Core Network

NetManager

MGCP/MEGACO

The Next Generation Network transit plane

(17)

Packet Local Switch (PLS)

for LEX consolidation, replacement & user growth

MGCP/ ACP

PBX

Trunk Gateway

POTS, ISDN -BRI

MGCP/ACP

Access Gateway Softswitch

ISDN-PRI

Legacy access equipment

V5.x/TR8/GR303 _{IP Core Network} MGCP

SS7

PSTN Network

Management System

SS7

Switch STP

(18)

Voice over Broadband (VoBB)

…any service over the broadband subscriber line

QoS IP

backbone

IAD

DSLAM

CPG

PSTN / ISDN

SS7

POTS /

PBX PBX

Modem

Network Terminator

IP clients and terminals

H.323+

IP-IP GW

IP PBX’s

H.323

M

NT

(19)

NextGen Applications (NGA)

multimedia...across any network

Voice over Broadband Packet

Local Switch

Virtual Trunking Virtual Trunking

SIP

Presence

IP Centrex

Open API‘s SIP

...and more

SIPSIP

(20)

Next Generation Networks and VoIP

n

The Market Situation

n

Next Generation Networks (NGNs)

n

NGN and VoIP Architecture

n

A Business Case

(21)

Business Case

Next Generation Networks: Voice and data join

Separate

PSTN- and

data networks

POTS ISDN Trunks

xDSL Voice via

splitter

PSTN / ISDN

Data

Today

Business Case 1

Business Case 2

(22)

Business Case

Next Generation Networks: Voice and data join

1. Step

Adding

Softswitch

and

Voice-GW for

converging

networks

Introducing

NextGen

Applications

PSTN / ISDN

Data POTS

ISDN Trunks

xDSL IP ATM

FR

Switch RSU

Switch

NextGen Applications

Business Case 2

(23)

Business Case

Next Generation Networks: Voice and data join

Consolidate

networks to

an all

IP- based

network

Target

POTS ISDN Trunks

Data POTS

ISDN Trunks

IP ATM

FR

NextGen Applications

Business Case 2

(24)

Business Case

Next Generation Networks: Voice and data join

POTS ISDN Trunks POTS ISDN Trunks xDSL Voice via splitter

PSTN / ISDN

Data

Today

Keep, Cap and Grow approach, allowing carriers and

service providers to smoothly transition from TDM to

packet at their own pace

Separate PSTN- and data networks

...

Target

Consolidate

networks to an all IP based network POTS ISDN Trunks Data POTS ISDN Trunks IP ATM FR NextGen Applications

1. Step

Adding Softswitch and Voice-GW for converging networks Introducing NextGen Applications

PSTN / ISDN

Data

(25)

Business Case Key Assumptions

Step 1 of Voice and data join

Network Size: 10‘ Mio Subscribers

New Applications:

Messaging

4 %

Info directories

3 %

Conferencing

1 %

IP Centrex

8 %

Call Control

4 %

Total additional revenues

20 %

Business Case Assumptions (2002-2006) (e.g. Western Europe)

§ Focus NGN deployment on regional sub-net cluster

(936K lines, 16 end offices and 2 transit offices, no subscriber growth)

§ Stepwise Phase-out of TDM Switch capacity (OPEX savings)

Source: Business Cases developed using Gartner Consulting Methodology and Research

Business Case 2

(26)

Voice and data join

Business Case Results

NPV

Phase 1:

Replacing the Transit Network

Focus modernization of the network with rapid deployment of NGN to achieve 67% OPEX 67% OPEX savingssavings

...

€(20) €(15) €(10) €(5) €-€5 €10 €15

Year 1 Year 2 Year 3 Year 4 Year 5

CAPEX

OPEX savings

Cum. NPV (12%)

X

Business Case 2

(27)

Introducing new IP services

CAPEX OPEX

Cum. NPV (12%) Add. revenues

X

Voice and data join

Business Case Results

Real user benefits provided by an Open Service Platform drive

penetration up and lead to 20% 20% additional

additional revenuesrevenues

NPV

Phase 1+2:

€(20) €(10) €-€10 €20 €30 €40 €50 €60

Business Case 2

(28)

Voice and data join

Business Case Results

Replacing the

Transit Network

Focus modernization of the network with rapid deployment of NGN to achieve 67% OPEX

67% OPEX savingssavings

Introducing new IP

services

Real user benefits provided by an Open Service Platform

drive penetration up and lead to 20% 20%

additional

additional revenuesrevenues

... ... €(20) €(15) €(10) €(5) €-€5 €10 €15

NPV Phase 1: EUR 5 Mill.

€(20) €(10) €-€10 €20 €30 €40 €50 €60

NPV Phase 1+2: EUR 31 Mill.

(29)

Next Generation Networks and VoIP

n

The Market Situation

n

Next Generation Networks (NGNs)

n

NGN and VoIP Architecture

n

A Business Case

(30)

Conclusion

In today‘s difficult market situation, carrier-grade

VoIP solutions will help drive the transition to Next

generation networks

n

Carrier-grade properties: QoS, reliability,

scalability, flexibility, security

n

Reduced OPEX

n

Additional service revenues

n