NGN Access Single Line Multi-Service ITU-BDT Regional workshop

NGN Access Single Line Multi-Service ITU-BDT Regional workshop on NGN Economics Damascus – Syria August 18 – 21 2003

Agenda § Public Network Evolution • Driving forces of network evolution • Evolution characteristics • Access Network Evolution § Broadband Access Network • NGN Access Network • PSTN replacement • Economics and Scale § Access Network Migration Local Perspective • Implementation Issues (universality and OSP) • Potential Solutions Aug 18 – 21 2003 Regional NGN Economics Workshop

Public Network Evolution

Telecommunications Operation Drivers A New Telecom Environment Characterized by: § New Business Models • Privatization Liberalization & Competition • Business & Customer oriented • Fusion of Economic Sectors § Service Convergence (IT & Telecommunication) • E-World & the Internet • Integration of Data Voice & Video § Accelerated Technology Developments • Optical Networking • Wireless Networking Competition • MIPS SW & Systems Modularity • Powerful users applications & CPEs Aug 18 – 21 2003 Regulations & Liberalization New Business Models Business focused Regional NGN Economics Workshop

New Business Model A Next Generation Architecture is Developing: § Multi-Service Demands • Customer Driven Service Development • Multi-Media Offerings § Emergence of Specialized Operator • Applications & Content Providers • Service Providers • Network providers § Clear & Distinct Separation between different Layers • Limit-less opportunities for service creation, empowered by specialized Service Platforms (e. g. IN, ISPs, VOD, etc) National Mobile • Transparency in Core & Access Network Telephon 27% 25% • Well defined standardized Interfaces e Other § Change in Revenue Streams • Data Traffic vs. Voice traffic • Developing countries / reductions in International voice revenues Aug 18 – 21 2003 3% International Telephone 45% Arab region Revenue $ 13. 1 B, 1. 6% of world, 99 ITU-T Regional NGN Economics Workshop

Public network evolution to NGN § Network evolution driven by: • Revenue diversification, More services to users. • Economy of Scale, Increasing penetration and coverage. • Capitalization on existing investment, Streamlining operation cost Voice § Next Generation Network • • • Higher BW to users Multi-Service support Scalability Future proof network Manageability Entertainment u u Video u CD Quality u Music u Commercial POTS Lifeline u Games / Gambling SINGLE LINE MULTI – SERVICE (SLMS) Multi-Unit Data u Aug 18 – 21 2003 u 128 k - 25 MB u Residential VPN Managed Always-on Customer Care u u New service subscription Pay bill on-line Regional NGN Economics Workshop

NGN, Emerging Architecture § Packet Based Network • Multi-service Support Over Single Infrastructure • Higher BW to Users &BW efficiency § Service Independence of Network Technology • Opportunities for service creation and development • Network Transparent Services Delivery • Standardized Interfaces § Distinct Separation between different Layers § Greater Emphasis on Management § Change in Traffic Streams • Data Networks Carrying Voice traffic (data limitations & congestion in voice nets) • Service based charges & profit distribution/Alternative Revenues to Voice Access network Aug 18 – 21 2003 Packetised Optical Core Service Intelligence Applications Hosting Regional NGN Economics Workshop

Structural Separation Contents Hosting Applications & Services Layer Core IP Router Network Layer Core ATM Switching DSLAM Dialup RAS Access Layer Head end CATV DSL Line Aug 18 – 21 2003 Access Router Leased Line Cable TV Service Intelligence Core Voice Switching DLC/RSU POTS or E 1 voice ATM / FR Access DSL Line Regional NGN Economics Workshop

Access Network The New Model § The Access Network Sets the Pace of Network Evolution • Focal Point for Increasing Tele-density, and no. of Customers • High BW to Users • Multi-Service Support & Evolution to Packet Based Network • Multi- Providers Support & Access Port Whole Sale • Short Time To Market • Competition Regulatory & Unbundling Pressure § Change Sensitive & Cost Sensitive • Vast Geographical Coverage • Large Investment Cost, Very Large Number of Node & Interfaces Interference • Highly Sensitive to Operation Cost Coordination w Minimize Change in Established Work Procedures w Least Penetrated by Management Systems w Low Skilled Work Force Lack of space § Access Agnostic Future Proof Architecture • Support for Current & Evolving Services • Support for Different Access Technologies Aug 18 – 21 2003 Regional NGN Economics Workshop

Next Generation Access Network § Flexibility • Multi-Service Support, • Multi-Provider Support • Full Services Transparency & STTM § Scalability • Penetration & Coverage • Public Network Requirement w Life Line support w Service Universality Simplified network architecture that provides broadband narrowband services over a scalable access and distributed switching • Service, Qo. S & SLA • Customer, Multi-Service & Multi-Providers support § Simplicity • Simple to Operate • Minimum Changes to Established Procedures • User Friendly Setup & CPEs § Cost Effectiveness • Capitalize on Existing Infrastructure Aug 18 – 21 2003 infrastructure. Regional NGN Economics Workshop

Agenda § Public Network Evolution • Driving forces of network evolution • Evolution characteristics • Access Network Evolution § Broadband Access Network • NGN Access Network • PSTN replacement • Economics and Scale § Access Network Migration Local Perspective • Implementation Issues (universality and OSP) • Potential Solutions Aug 18 – 21 2003 Regional NGN Economics Workshop

NGN Access Network

Access is the limitation POTS Local Exchange BRI PRI 64 k E 1 X. 21/V. 35 § Given the limitation of the traditional C. O. switches (64 k per line), current access infrastructure cannot be the right basis for the Internet economy services § “Now that Telecom Italia is fully privatized our main goal is to freeze all the investment in traditional Access Technology (POTS, ISDN and Leased Line) moving investments toward Broadband solutions” [Oscar Cicchetti – CTO Telecom Italia] Aug 18 – 21 2003 Regional NGN Economics Workshop

Broadband Access Technologies § Satellite – Expensive • efficient in remote areas § Coax – • Cable operators exploiting infrastructure § Copper – • ISDN/x. DSL, Maximum utilization of existing infrastructure § Fiber – • FTTCab FTTCurb FTTB FTTH § Electric Power Lines – • Higher coverage and scalability than PSTN, however complex technology § Terrestrial Wireless BWLL – • Both through packet based systems (Wireless Ethernet point to Multipoint) or through MMDS/LMDS Aug 18 – 21 2003 Regional NGN Economics Workshop

Today’s Local Loop SUBSCRIBER DISTRIBUTION Cable Hub CENTRAL OFFICE Head End Video TV Mux PC T 1/E 1 Router DSLAMs PC ATM Switch Private Data SMS IP Router Core NGN SMS Internet DSL Modem DLC COT PSTN Telephone Local Exchange Switch Aug 18 – 21 2003 Regional NGN Economics Workshop

Problems with the Current Access Solutions § Traditional TDM access technologies are very expensive to additional services § Service providers are overlapping legacy and broadband access technologies § No true integration of services into a single subscriber access line yet § Multiple bills from the same service provider § Infrastructure product are all provided from different vendor § Scaling and installing subscriber services to the masses has been very difficult § Not all access technologies will support broadband value added services § High risk on Investment Protection, Carriers will only deploy Next Generation DLC RSU, if they are confident that it will be a Node in their NG Packet Infrastructure. Aug 18 – 21 2003 Regional NGN Economics Workshop

Multi-Service and NGN Access Contents Hosting Other OSS & Managt systems Core ATM Switching Network Layer Core IP Router Service Gateway Access Managt System Service Intelligence Applications & Services Layer Core Voice Switching Service Gateway Access Layer DSLAM DLC/ RSU DLC/RSU DSLAM Braodband G. SHDSL Broadband x. DSL IAD Narrowband FXS / FXO Home GW Aug 18 – 21 2003 Regional NGN Economics Workshop

NGN Access Characteristics Multi-Service Solution § State of the art Packet (IP/ATM) Solution • Best efficiency in terms of Transmission BW • Future Proof Solution § Multi-Service Support (Full convergence of Data and voice services) • Convergence on IAD/Home Gateway, DLC/DSLAM, and Service Gateway • Streamline the network (Less boxes in number and types) § Highly flexible service oriented solution • Flexible service provisioning with SLA & Qo. S, • Standard based Transparent support of features and services • Generating new services and revenue opportunities • Shorter time to market & lower cost • Multi-Provider Support § End-To-End management Aug 18 – 21 2003 Regional NGN Economics Workshop

NGN Public Access, Serving Central Office Copper XDSL POTS FXO POTS DLC/DSLAM Data Center CO T 1/E 1 Indoor /Outdoor Class 5 Switch STM-x Packet Connections ATM/Frame Relay Switch XDSL DLC/DSLAM POTS Service Gateway Indoor /Outdoor T 1/E 1 Backbone IP Router Aug 18 – 21 2003 Regional NGN Economics Workshop

PSTN: Traditional wire line voice network TOLL User network RT Access LE network Backbone network Proven economical operator network built out. • ‘Toll/Class 4’ voice switches for high capacity switching • ‘LE / Class 5’ voice switches for service delivery • ‘Remote terminals’ for economical access Flexible service handling – “intelligent networks” • client server model • uses SS 7 message transport capability Aug 18 – 21 2003 Regional NGN Economics Workshop

NGN Access - Conceptual Design Objectives § ‘Copy’ the proven traditional voice network topology and service models, but address: • Integrated multi-service (service agnostic) w Voice, data, video, entertainment – over single line w New paradigm: ‘subscriber focus’ with assigned services vs. service specific • Apply latest technologies w Broadband to address bandwidth needs w Packet technology to allow efficient bandwidth utilization • Agnostic for access technology w Copper, fiber, wireless w Unify data streams and ensure equal service control § Ultimately aimed to reduce operational expenses. • Dramatically reduced number of boxes w slot cards vs. boxes • Management System w End to End across Access Network w Multi-Service Multi-Provider support w Gateway for interoperation with other Operational Support Systems § Distributed architecture designed for 99. 999% availability Aug 18 – 21 2003 Regional NGN Economics Workshop

A closer look. . VOICE & 64 kbps data services User Access network Backbone network POTS ISDN RT network LE circuit - Reliable Architecture - Highly Scalable in Coverage and Number of Nodes/Lines - Narrow-bandwidth Limits Services Delivery Aug 18 – 21 2003 Regional NGN Economics Workshop

Functions of the LE VOICE & 64 kbps data services User network Backbone Access network LE RT circuit Remote Access TRUNKING Subscriber ACCESS Aug 18 – 21 2003 Call PROCESSING TRUNKING Regional NGN Economics Workshop

Multi media switch: Broadband Access Node Any Service (Voice, data, video, entertainment. . User network Backbone Access network RT ACCESS Aug 18 – 21 2003 network Packet Service GW Relay of Call PROCESSING TRUNKING Regional NGN Economics Workshop

Remote node: Multi Access Line Concentrator Any Service (Voice, data, video, entertainment. . User network Backbone Access network Line Access Concentration packet Remote Access Packet Service GW TRUNKING ACCESS Aug 18 – 21 2003 network Relay of Call PROCESSING TRUNKING Regional NGN Economics Workshop

Customer Premises: Integrated Access Device Any Service (Voice, data, video, entertainment. . User network Backbone Access network Any service IAD Line/Access Concentration packet network Service GW Access Management Well known ports Remote Access Trunking ACCESS Aug 18 – 21 2003 PROCESSING TRUNKING Regional NGN Economics Workshop

Economics and Scale (Drivers) § Distribution & Service Diversity • Service Diversity to follow customer demands • Service changes • Geography & Socio-Economic of Service Areas § Multi-Services Quality • Universal Service Obligation • QOS & SLA § Tariffs & Revenues • Maximize Revenues in potential Service area • Cost and Tariff to reflect Qualified. Areas/USO/Qo. S • Opex reduction Aug 18 – 21 2003 Regional NGN Economics Workshop

Distributed Access Architecture Application &Service Layer Services & Applications Other OSS & Managt Systems PSTN Switched Circuit Network Public Broadband Core Network Local Exchange V 5. 2 IP/ATM Service GW VG POTS ADSL SHDSL VDSL E 1/PRI DID E 1 IP/ATM VG BAS Aug 18 – 21 2003 Service GW Access Layer Access Concentration Layer Line Termination Layer RSU (DLC) /DSLAM MTU/MDU RSU(DLC)/DSLAM 1 Z-Edge IP/ATM Link TDM Link DSL Link POTS Chasta Aggregation IP router Node Service Mediation & GW Layer Access Managt System Core Layer DLC/DSLAM x. DSL VDSL IAD FXS / FXO Home GW CPE Layer Regional NGN Economics Workshop

Economics and Scale Factors § Broadband Access & Coverage Area • • • Total Service Area Wire Centers in area Wire pairs per Center Wire Length Rate limitations over copper § Dedicated against Shared Medium • Density and Traffic requirement per Service • Symmetric/Asymmetric • QOS & SLA Aug 18 – 21 2003 Regional NGN Economics Workshop

Agenda § Public Network Evolution • Driving forces of network evolution • Evolution characteristics • Access Network Evolution § Broadband Access Network • NGN Access Network • PSTN replacement • Economics and Scale § Access Network Migration Local Perspective • Implementation Issues (universality and OSP) • Potential Solutions Aug 18 – 21 2003 Regional NGN Economics Workshop

Broadband Access - Syrian Network § Fiber Optic to Several Organizations and Large Enterprises • SDH based Nodes allowing transmission of Nx. E 1 s or E 3 s. § Limited use of HDSL as part of TDM/FR Digital Leased Line Network, Serving SMEs • Using standalone 1 pair and 2 pairs modems to deliver low speed LL § ATM based ADSL/SHDSL DSLAMs as part of Internet backbone • for high speed Internet and Leased Lines, is under installation (about 5000 ports, expandable to 20, 000) § WLL evaluation/tendering § About 80, 000 ISDN BRI ports Aug 18 – 21 2003 Regional NGN Economics Workshop

Broadband Access - Limitations § Access Network current architecture is not BB friendly • In Large Cities typical wire center/office area ranges between 3 -5 KMs, • However smaller towns and rural areas tend to have longer loops #8 KMs. • Most wire Centers has Switches, not much use of DLC/RSU concept. • No Outdoor Cabinets, minor fiber penetration to Local Loop (neither feeder cable/distribution cable) § Designed toward Single Service per line (voice mainly) • Large Cities where majority of target BB users, suffer shortages of copper loop • Outside plant is not evaluated for outdoor/indoor Cabinets use • Copper quality targets Analog voice delivery, few digital testing take place § Copper qualifications for Multiple Services and Digital transmission • Many segments has old copper cables and requires replacement, Customer Premises IAD / Home GW Curbside MDU/MTU Outdoor Cabinets RSU/DLC DSLAM CO Indoor Cabinets DLC/ DSLAM CO/POP Service Enforcement / Gateways Aug 18 – 21 2003 Regional NGN Economics Workshop

The Way Forward § Use current plans for DLC/RSU introduction • Target Narrowband Broadband Services • Ensure that DLCs/RSUs will form part of STE Packet Network • Extend fiber in primary network • Design DLC/RSU areas targeting BB (short secondary loops) § Different Access Solutions to suit different areas • Follow current demography of each access area • Flexibility, Design for Service evolution and changes in demography and customer demands (voice vs. data) • Target Penetration and Scalable platforms • Investment protection for future service Introduction Aug 18 – 21 2003 Regional NGN Economics Workshop

Service Definition To maximize revenues and customer base, design Multi. Service packages § Voice Data or Video packages? § Circuit-switched or packet-switched? § Symmetric or asymmetric? § Mass market or niche? § Coverage and Market Segmentation? Aug 18 – 21 2003 Regional NGN Economics Workshop

Possible Service Evolution § Target Public Voice and Data • Meet delayed Voice demands, overcome copper shortage (minimize investment in copper through pushing fiber in Access Network) • Flexible Service Evolution to meet demands for higher BW and potential future services • Access Nodes to provide POTS/ISDN Lines (directly in Curb/Cabinet or Inband VOP) • Access Nodes to provide ADSL / SHDSL for Internet Access and Leased Lines § Migrate to support Video and BW consuming Interactive Services Service Class Premium. Business SOHO Fast Internet, Intranet, POTS 0. . 5 -1 Silver. Business SOHO/Small Enterprise Fast Internet, Intranet, ISDN 1 -2 Gold. Businessl Application Baskets Small/Medium Enterprise Fast Internet, intranet, Data Transmission, VOP, POTS 2 -8 Premium. Residential Fast Internet 0. 5 Silver-Residential Fast Internet, POTS 1 Gold-Residential Fast Internet, ISDN 2 Aug 18 – 21 2003 Typical Customer Maximum Bit rate Downstream (Mbps) Application Baskets Regional NGN Economics Workshop

Thank You Yassar Khoury Zhone Technologies, Inc Senior Systems Engineer MEA & Asian Sub-Continent tel. +971 4 331 3421 fax. +971 4 332 2865 [email protected] com