Transcript Custmer Event Crete-CE2007

Improving Your Bottom Line with
Cost-effective Access Solutions
Customers’ Event Crete, May 2007
Presented by:
Dario Zipris
VP Sales
The Regional
Conference on Access
2007
RAD Data Communications
Global Telecommunications
Connections, 2004 – 2007
Users (Millions)
5000
4000
3000
2000
1000
0
2004
2005
Mobile
PSTN
2006
Broadband
2007
VoIP
Source: Point Topic, 2007
What to look at?
Mobile and Ethernet/Broadband markets!
Improving Your Bottom Line CE2007 Slide 2
Competitive Environment in the
Mobile Operators
50
• Mobile voice service is a saturated
market where price wars are
common
Operators (MVNOs) are competing
for other operators’ customers
Q1-Q3 05
45
Q1-Q3 06
40
7%
35
ARPU
• New Mobile Virtual Network
6%
30
25
20
16%
9%
10%
15
15%
10
5
0
N. America CALA
Average
Average
AsiaPacific
Average
C/E Europe W. Europe
Average
Average
MEA
Average
Source: Strategy Anlytics, Nov. 2006
• All world regions have suffered declining ARPU in the first
three quarters of 2006
• Mobile operators are looking for alternatives to compensate
for the effect of declining revenues on their bottom line
Improving Your Bottom Line CE2007 Slide 3
More Revenues with Data Services?
• Generate new revenues by offering new mobile data services
• Data services are taking off in the market BUT:
•
Revenue per data bit transported is lower than the revenue per voice bit
•
Is the market ready to pay for the data services?
•
The amount of traffic to transport in order to compensate for declining
voice revenues is going to grow significantly
•
The data services might saturate your voice network the core of your
profit! And for very low income
4
Mobile Data ARPU
3,5
3
2,5
2
1,5
Source: Strategy Anlytics, Nov. 2006
1
0,5
0
Q1 05
Q2 05
Q3 05
Q4 05
Q1 06
Q2 06
Q3 06
Improving Your Bottom Line CE2007 Slide 4
Ethernet in EMEA
Already an Interesting Revenue Stream
• Early rollouts dominated by Ethernet over fiber and ATM
• Eth-over-MPLS and Eth-over-SDH are the biggest opportunities
4.000
Revenues ($ Million)
3.500
3.000
2.500
2.000
1.500
1.000
0.500
0.000
2004
2005
2006
2007
2008
Copper Access
Ethernet over Fiber
Ethernet over MPLS
Ethernet over WDM
2009
2010
Ethernet over SDH
Improving Your Bottom Line CE2007 Slide 5
Market Players: Service Providers
Your Challenges
• Low margins on traditional services
• Increased competition
Your Winning Strategy
• Protect
your customer Base
• Add new services on existing platforms
•New revenue stream with new services
Your Possible Solutions
• Ethernet services over any network
• Expand your metro as a nationwide service
• Legacy & Voice traffic over any Platform
Improving Your Bottom Line CE2007 Slide 6
Market Players: Mobile Operators
Your Winning Strategy
Your Challenges
• ARPU Decreasing
• Reduce
• Questionable ROI of data services
your backhauling
expenses with traffic aggregation
• 3G deployment: new revenue stream
• Smooth migration to PSN
Your Possible Solutions
• Deploy today a future proof Backhaul platform
• Voice Compression and Traffic optimization
• Effective HSDPA Traffic handling
Improving Your Bottom Line CE2007 Slide 7
Market Players: Utilities and
Transportation
Your Winning Strategy
Your Challenges
• Old communications platforms
for today’s needs
• Pressure to provide data and
entertainment services
• Modernization
of data infrastructure
• New services: Internet, information
boards, ticketing etc.
• Internal corporate service
Your Possible Solutions
• Leverage your existing infrastructures
• Multi-service Platforms: low and high bandwidth
service integration
Improving Your Bottom Line CE2007 Slide 8
Coping with your Challenges
Better utilization of your existing infrastructure
Offering more attractive services
Improving your and your customer’s
bottom line!
Improving Your Bottom Line CE2007 Slide 9
Market Players: Utilities and
Transportation
Your Winning Strategy
Your Challenges
• Old communications platforms
for today’s needs
• Pressure to provide data and
entertainment services
• Modernization
of data infrastructure
• New services: Internet, information
boards, ticketing etc.
• Internal corporate service
• Utelco
Your Possible Solutions
• Leverage your existing infrastructures
• Multi-service Platforms: low and high bandwidth
service integration
Improving Your Bottom Line CE2007 Slide 10
Power Substations
Connectivity over Legacy
• Multi service applications connectivity over SDH
SCADA
SCADA
SCADA
Control Center
120 X E&M
E1
n x E1
E1
SCADA
n x E1
ADM
n x E1
STM-1
n x E1
F.O
OP-XLE1
ADM
ADM
ADM
Copper
STM-4
ADM
SCADA
n x E1
ADM
ADM
Improving Your Bottom Line CE2007 Slide 11
Highways and Railways over NGN
• Legacy traffic control system and voice over MPLS rings
Israel Railways
Fast Ethernet Resilient Ring Over MPLS
GBE
GBE
GBE
GBE
Regional Control
Center
ETH
ETH
ETH
MP
Data Voice
ETH
ETH
MP
ETH
ETH
ETH
MP
MP
Data Voice
Modems
UK Highway
Rumanian Railways
Korean Subways
Improving Your Bottom Line CE2007 Slide 12
Corporate Networks Successes
Shanghai
Subway
Rome Station
CPTM-Brazil
Israel Railways
Ofotbanen Norway
Russia
EDF France
Shell
Nigeria
GASProm
Russia
China Light
& Power
Surgutneftegas Russia
Improving Your Bottom Line CE2007 Slide 13
Service Providers
Your Challenges
• Low margins on traditional services
• Increased competition
Your Winning Strategy
• Protect your customer Base
• Offer new services on existing platforms
• New services: new revenue stream
Your Possible Solutions
• Ethernet services over any network
• Expand your metro as a nationwide service
• Voice over any Platform
Improving Your Bottom Line CE2007 Slide 14
Metro Ethernet Access
Customer Premises
CPE
UTP
GE/FE
ETX
FO
GE/FE
Edge
Device
Edge
Device
Customer Premises
FO
GE/FE
Packet Switched
Network
Eth/IP/MPLS
CPE
ETX
GE/FE
Customer Premises
Ethernet
IPmux-11/14
LAN
FE
PBX
E1
GE
Gmux-2000
Short List
21 Century
STM-1
E1/E3
PSTN
No 1 in deployed
TDMoIP lines
• Smart CPE enlarges your service portfolio, additional revenues
• Pseudowire technologies for legacy service emulation
• Corporate voice savings
Improving Your Bottom Line CE2007 Slide 15
Ethernet over Existing SDH
Infrastructure
Customer Premises
CPE
FE
ETX
Packet Switched
Network
Eth/IP/MPLS
Fiber
Customer Premises
IP-DSLAM
RIC
MP-4100
GE/FE
MP-4100
Egate
10/100BaseT
n x E1
STM-1/E1
Customer Premises
RIC
10/100BaseT
ADM
E1/T1
n x E1/T1 ADM
SDH/SONET
Network
Customer Premises
GE
Customer Premises
CPE
ETX
FE
CPE
ETX
GE/FE
NG
ADM
FE
NG ADM
Improving Your Bottom Line CE2007 Slide 16
Metro Expansion over SDH
Evolutionary Multi-service Solution
CPE
ETX
GE/FE
Edge
Device
Edge
FO Device
GE/FE
Your Benefits
Packet Switched
Network
Eth/IP/MPLS
•
From City to Nationwide coverage
•
Wide Service portfolio
•
Intelligent CPE: Revenue increased
by SLA differentiation
•
Better utilization of existing
resources
GE/FE
IPmux
Ethernet
FE
LAN
E1
Edge
Device
Edge
Device
GE/FE
GE
Egate
Gmux-2000
STM-1/E1
STM-1
E1/E3
10/100BaseT
TDMoIP
Voice to the
PSTN
Network
ADM
ADM
Advantages of RAD’s Solution
CPE
ETX
PBX
RIC
ADM
n x E1/T1
SDH/Sonet
Network
• Money saving SDH concentrator
• Single supplier of Voice and
Ethernet Services
FO
GE/FE
IP-DSLAM
RIC
E3/T3
10/100BaseT
ADM
FCD-155
LAN
n x E1/T1
STM-1
ADM
Improving Your Bottom Line CE2007 Slide 17
Adding Ethernet Access Solution
Branch
Branch
10BT
RIC
Metro
Ethernet
Branch
100Fx/
GbE
ETX
10BT
RIC
10BT
RIC
EoPDH
Branch
RIC
GbE
Branch
EoPDH
DSLAM n x EoCU
100BT
SDH
Bonding
n x EoPDH
Bonding
GbE
1000Sx
Egate
ETX
10/100BT
GbE
STM-1/OC-3
Headquarters
LA
Service Provider
Packet Switched
Network
GbE
Branch
DSLAM
LA
EoCU
10BT
GbE
• Extending the reach of the provider’s network over a variety of
access technologies
• Consistent Ethernet service across different access technologies
Improving Your Bottom Line CE2007 Slide 18
Ethernet over SDH Successes
Incumbent Carriers:
Nepal Telecom
Alternative/City Carriers:
Improving Your Bottom Line CE2007 Slide 19
End-to-End VoIP Solutions
in one week!!
Customer Premises
PBX
Tel Lines
(POTS, ISDN, E1)
Back-office Provider’s Site
IPVgate
CPE
IPVsuite
RADview-SC/IPV
Management & Monitoring database
LAN
ADSL
Smart CPE
IP
Network
IPVswitch
Class5 SoftSwitch
IP Phone or SIP client
PSTN or
Cellular
IPVgateP Gateway
• Integrated VoIP Access System
• Time to Service = 1 Week !
• Low initial investment
• Unique Quality of Service
Improving Your Bottom Line CE2007 Slide 20
Service Provider’s Business Model –
Simple and Clear
Potential Customers
Year1
100
Total
10,000
Installations Rate per Month
Year3
Year2
300
300
Year4
100
Average Customer Profile
8
Employees
25
Minutes/Day/Employee
2.5
lines (in avr.)
Monthly Operation Cost:
€ 80 per customer
Person per
€ 2,000
Manager per
€ 3,000
30%
€ 10,000 (e.g. network cost, COO)
Installation cost
Tech support salary
Manager salary
Overhead Expenses
Additional expenses
Capital Investment:
VoIP GW € 100
LEAD TelcoSuite (cluster)
LEAD Telco License/Subscriber
IPCenter (CPE)
€ 50
Additional Network Equipment
€0
-€ 50
0
500 Subscribers
8 Technicians
€ 10,000 4x E1
€ 60,000 H/W+SW
€ 60 per customer
€ 400 Average
€ 7,000
Service Revenues per Customer per Month
€ 1774
Service Revenue
2
€ 53
Service cost
€ 124
Gross Margin
Margin
Fee
Service Monthly Tariffs:
Avr. Call rates:
Minute rate (Average)
€
0.03
Monthly fees:
Basic line
DDI, MSN (/10 numbers)
CLID
Call Divert
VoiceMail (per line)
Encrypted calls
VPN (data) 6
€
€
€
€
€
€
€
9
10
2
3
4
20
90
8
Installation Fee
€
20
PBT - year1
Service
Usage%
60%
100%
20%
90%
40%
30%
5%
15%
10
12
14
-€ 100
-€ 150
Cash Balance - year1
-€ 200
-€ 250
-€ 300
Invest-As-You-Charge Economics
Improving Your Bottom Line CE2007 Slide 21
Mobile Operators
Your Challenges
• ARPU Decreasing
• Questionable ROI of data services
Your Winning Strategy
• Reduce
your backhauling
expenses with traffic aggregation
• 3G deployment: new revenue stream
• Smooth migration to PSN
Your Possible Solutions
• A single backhauling platform: Legacy and PSN
• Voice Compression and Traffic optimization
• Effective HSDPA Traffic Handling
Improving Your Bottom Line CE2007 Slide 22
Traditional Backhaul Networks
Over 3 years with RAD 2.5/3G
DSL Backhauling
Backhauling services
offered by
FT Global based on RAD
Radio Sites
LA-110
DSL
n x DSL
2G BTS
3G Node-B
TDM/ATM
2G BTS
3G Node-B
DSL
Bonding
E1 IMA
ATM
DSLAM
BSC/RNC Site
SHDSL
STM-1
ATM
Ch. STM-1
Voice
E1 UNI
3G Node-B
LA-110
ACE
E1s
TDM
LA-110
Multiservice
Aggregation
n x E1 IMA
STM-1
SDH / ATM
Access
Network
ADSL
n x E1 (IMA)
STM-1
HSDPA
ACE
Multiservice
Aggregation
n x E1
TDM
2G -BTS
n x E1 ATM
IMA
3G
Node-B
Improving Your Bottom Line CE2007 Slide 23
NGN Backhaul Networks
Radio Sites
LA-110
DSL
Backhauling services
offered by
FT Global based on RAD
n X DSL
IP
DSLAM
BSC/RNC Site
SHDSL
2G BTS
3G Node-B
DSL
Bonding
LA-110
Voice
E1 UNI
3G Node-B
LA-110
ACE
FE/GbE
Ch. STM-1
TDM/ATM
E1 IMA
STM-1
ATM
E1s
TDM
2G BTS
3G Node-B
Multiservice
Aggregation
PSN
ADSL
Access
Network
FE/GbE
HSDPA
ACE
n x E1
TDM
Multiservice
Aggregation
Emulated TDM or ATM Service
2G -BTS
n x E1 ATM
IMA
3G
Node-B
• Allows additional Opex cost reduction (10:1 ratio)
• Complete portfolio – including DSL-based PW devices
• Smooth migration to PSN
Improving Your Bottom Line CE2007 Slide 24
Effective Handling of HSDPA Traffic
RAD is Awarded
HSDPA Hybrid Global Tender
HSDPA
n x E1 ATM
3000 NodeB’s for HSDPA
Over ADSL
ACE-3200
ADSL2+
FE
3G NodeB
IP DSLAM
HSDPA
STM-1
ACE-3402/3600
ACE-3100
ADSL2+
FE
PSN
GE
3G RNC
3G NodeB
3G NodeB
STM-1/
ATM
LA-130
Up to 4 x E1 ATM
HSDPA Traffic
ADSL2+
ATM
Transport
Network
RFQ Stage:
Improving Your Bottom Line CE2007 Slide 25
Slashing Your Opex
MSC Site
16-to-1 E1 Compression
MSC Site
Voice Trunking
STM-1
E1s
Voice Trunking
Gmux-2000
MSC
STM-1
MSC
E1s
TDM
Network
Remote MSC Site
Gmux-2000
MSC/BSC
Voice Trunking
E1s
Vmux-2100
GSM A-bis Optimization
GSM Base
Stations
E1s
Vmux
TDM/IP
Transport
Network
A-bis
Optimization
BS
C
E1s
ROI:
2 to 8 Months
Vmux
Improving Your Bottom Line CE2007 Slide 26
Ideas to Improve Your Bottom Line –
Day 1
Migration to All-IP Networks
Mobile & Service Providers
Your Possible Solutions
Utilities & Transportation
Your Possible Solutions
• Ethernet services over any network
• Leverage your existing infrastructures
• Multi-service Platforms: low and high
bandwidth service integration
• A single backhauling platform: Legacy and PSN
•Voice Compression and Traffic optimization
• Effective HSDPA traffic handling
Personal Meetings & Product Showcase
Improving Your Bottom Line CE2007 Slide 28
Ideas to Improve Your Bottom Line –
Day 2
Service Providers
Your Possible Solutions
• Leverage your SDH platform to provide new services
• Expand your Metro/Ethernet as a nationwide service
• Legacy & Voice over any Platform
Summary
Improving Your Bottom Line CE2007 Slide 29
Improving your Competitiveness
• Better utilization of your existing infrastructure
• Offering more attractive services
• Evolutionary NG implementation
Improving your bottom line!
Improving Your Bottom Line CE2007 Slide 30
thank you
Enjoy the conference!
Dario Zipris
The Regional
Conference on Access
2007
VP Sales
www.rad.com