Transcript Driving network transformation

Mobile and Broadband Contents
and IPTV
IP Transformation
Eshwar Pittampalli, Ph.D., P.E.
July 15, 2008
Outline
1. Introduction
2. Service and Business Drivers
3. IP Transformation Considerations
4. Raising the Top Line
5. What Makes the Difference?
6. Conclusion
Transformation:
Beyond business as usual
“IP transformation”
= “IP” + “Transformation”
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Transformation:
Beyond business as usual
“IP transformation”
= “IP” + “Transformation”
4 | IP Transformation | July 2008
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2
Service and Business Drivers
Service drivers: Anywhere, any device, any service,
Single IP network for all access methods and applications
Wide variety of linkages between services and terminals
 VoD on mobile devices
 Video telephony via computers
 Internet access, telephony and IM via TV sets
 Gaming on everything
Value of linkage between services and network
infrastructure remains
 End-to-end QoS per service type
 Close coupling between service
delivery and content storage
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Technology enablers
IP everywhere
 Small, low-cost consumer devices support advanced IP functions
 Switches and routers in access and aggregation network support session-based
QoS — under control of policy management
Access nodes are becoming (and must be) increasingly intelligent
 Wireline access nodes support intelligent video handling for IPTV
 Wireless base stations support radio scheduling, encryption, header
compression and IP QoS awareness
Application nodes are becoming (and must be) increasingly access independent
 IMS for fixed and mobile
 Multi-rate live and VoD video coding
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Service drivers and technology enablers lead to IP networks
Any where, any
service on any
device
IP-aware access
nodes
Application nodes
becoming access
independent
IP networks will have:
 Aggregation network supporting multiple access technology - both user and access aware
 Minimized number of nodes to improve latency (VoIP, gaming…)
 Policy-driven QoS enforcement, activated based on user location, or device choice
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All-IP requires a considerable investment to ensure long term business
sustainability — without all-IP carriers business is at substantial risk
Example — top line
Revenue and spend: baseline vs. all-IP
 The target architecture of the fixed network
operator is composed of a common service
layer and a core network connected via
broadband access to the client site
 Revenue increase is mainly driven by
broadband subscriptions and value-added
services (e.g. IPTV)
Revenue and spend:
baseline vs. all-IP
Higher
revenues
 All-IP OPEX increases due to the higher
efforts for broadband services — all-IP
OPEX per revenue decrease compared
to the baseline
 All-IP CAPEX substantiates over 7 years — then
it is assumed to fall back to baseline CAPEX
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All-IP revenue
Slightly
higher
OPEX
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Baseline rev.
All-IP OPEX
Baseline OPEX
Heavy initial
investment
All-IP CAPEX
Baseline CAPEX
All-IP requires a considerable investment to ensure long term business
sustainability — without all-IP carriers business is at substantial risk
Example — top line
Resulting cash flow analysis
Resulting Cash Flow
 The baseline will drop on zero or
lower cash flow putting carriers at
substantial risk
 The all-IP cash flow becomes largely
positive due to highly favourable
revenue – cost relation
 The all-IP investment is significant
and has to be aggressively put
through which represents the
basic business risk
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AllIP
Baseline
Y1
Y2
Y3
Y4
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Y5
Y6
Y7
Y8
Y9
Y10 Y11 Y12 Y13 Y14
3
IP Transformation Considerations
IP transformation occurs at multiple layers of the technology system
Focus for wireless
operators
Technology system
Application
layer
Focus for wireline
operators
Applications
Mobile video
IPTV
Voice
SDP/SDE
Content
services
PSTN
Data
SDP/SDE
Video
IMS
IN/AIN telephony
applications
IMS
Call/session control
Session
control
layer
Voice
Internet
IN and telephony
applications
Gateway MSC
Fixed mobile
convergence
Media and
endpoint
layer
DWDM
IP Core / R4
3G mobile
Access
layer
Optical transport
Access networks
CL5/CL4
ULH
Data
center
CMTS
DSLAM
OLT
Consumer
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Legacy data services
SONET/SDH
Backhaul
High-speed aaccess
IP/MPLS
core
IP multiservice
edge
CMTS
OLT
DSLAM
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Enterprise
Core
High-speed access
Transformation program models:
Examples of big bang vs. incremental vs. mobile
Carrier 1 – Big bang
Carrier 2 – Incremental
Carrier 3 – Mobile
Technology
Program
Technology
Program
Technology
Program
Access
VDSL and FTTN
Access
FTTH
Access
HSDPA in progress
Core
IP/MPLS
Core
IP/MPLS
Core
IP/MPLS
Consumer voice
NGN voice now > IMS
Consumer voice
VoIP
Distributed Rf
Already deployed
Business voice
IP Centrex (Broadsoft)
Business voice
IP Centrex
FMC
Post IMS deployment
CL5
Subs-driven migration
CL5
Future
CL4/Tandem
No plans
CL4
Long term
CL4
Future
IN/AIN
Long term
IN and telephony
apps
Still working portfolio
IN and telephony
apps
Future
IMS
In Trial
Legacy data
services
Still working portfolio
Legacy Data
Services
Future
SDP/SDE
In planning
IMS
Long term
IMS
Long term
Mobile video
Evaluating
SDP/SDE
Partial deployment now
SDP/SDE
In development
IPTV
In progress
IPTV
In progress
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4
Raising the Top Line
Unlock the value of your intangible assets
Blending the best attributes of all domains
Telephony
domain
 QoS
 Trust
 Reliability
 Mobility
IT domain
 Simplicity
 Reuse
 Operations
agility
 m-Commerce
Cross-domain
services
Web domain
 Advertising
 Fulfillment
 UGC (social
networking)
Content
management
 Highbandwidth
content
 Brokering
IP transformation business models
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Tactical moves and long-term strategy
AT&T is implementing a common architecture for real-time services (CARTS)
North American example — top line
Roadmap:
2007
AT&T video share: one-way video streaming
(live or recorded) with simultaneous audio
Utilizes IMS to initiate the video session during a voice call
IMS-enabled U-VerseSM Voice Managed VoIP Service
2008 and Beyond
Continue building new IMS-enabled services for consumer,
wireless and enterprise markets
Complete evolution of wireline and wireless networks to
CARTS unified network
VoIP IMS-enabled services and applications for enterprise
Snapshot of possible future services:
Consumer convergence applications
Video services and sharing
Social networking
Music
Location-based service enabler
TV - voicemail, talking caller ID, wireless Caller ID
Source: AT&T website Jan 2008
AT&T is pursuing a “true” three-screen strategy
Stock performance has seen a 57% increase since 2004 when U-Verse was first announced
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Success at several service providers confirms level of improvement possible
Integration of networks
to allow cost synergies
Optimization of the
network and operations
Streamlining processes
and IT systems
AT&T
KPN
Telstra
Cost synergies from
integration and transformation
Cumulative OPEX savings
Number of
OSS/BSS systems
$1.1B
2006
>$3B
2007
>$5B
€150M
2005
2008
€450M
2007
€850M
1252
2009
2006
~50
Simplifying the product
portfolio and the
‘customer experience’
Focus on investing
in growth services
Bell Canada
Telefonica
Products in portfolio
Broadband share in CAPEX mix
~100
2005
~50
27%
2006
2000
2011
64%
2005
Source: service providers reports and analyst presentations
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5
What Makes the Difference?
Experience, Experience
and Experience
Field-proven experience in holistically managing
cross-domain interdependencies
IP transformation
methodology
detailing the
end-to-end process
1
Service delivery
environment
expertise — applying
network expertise
to the IT domain
Program
management
Business
transformation
Services
transformation
Ability to optimize cost
structures for legacy
and NGN networks with
network support and
operations practices
3
Network
transformation
Stakeholder
engagement
Designing and
implementing
flexible IP networks
2
4
Managing external expectations
and relationships
…the most experience, proven methods, cross-domain expertise
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IPTCs offer enhanced expertise
Multivendor integration and transformation projects worldwide
KPN - Juniper, Cisco, Cramer, Remedy, Siemens, Ericsson,
Broadsoft, …
Wind - Cisco, Microsoft, Convedia, Sylantro, Harmonics,
Thomson, Syndesis, …
BT - Motorola, Ericsson, Inventel, Colubris, Microsoft, …
Murray Hill,
New Jersey &
Plano, Texas
Antwerp,
Belgium
AT&T –
Microsoft, 2wire,
ScientificAtlanta,
HP, IBM, Cisco,
Amdocs, …
Alcatel-Lucent
IPTC
Singapore
IC
Brazil
Partnering for change
TNZ - Juniper, Broadsoft, AXIOM, Micromuse, Motive,
Cramer, Genesys, …
Telstra – Tellabs, Juniper, Convedia, ACME, Cisco, Cramer,
MicroMuse, Clarify, …
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6
Conclusion
Key messages
 Service providers are moving from telephony domain to cross-domains
based on IP (SP to FSP)*
 IP transformation results in converged service delivery environment that
separates network access from services access
 Service providers have to move into content partner management, security
and context aware service environment
 Short-term complexity versus long-term simplicity
 Maintain both legacy and IP networks
 Adopt third party innovations
 Reposition as content and solution provider instead of telephony carrier
* Service providers to full service providers
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Thank you!