ethernet and optical products future strategy · portfolio by withdrawing wes / bes / wees 10mbit/s...
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Copyright © British Telecommunications plc 2013
Registered Office: 81 Newgate Street, London EC1A 7AJ
Registered in England No. 1800000
Ethernet and Optical Products
Future Strategy
Industry Invitation to Input
Date: 25th January 2013
Ethernet and Optical Future Strategy – Industry Invitation to Input
Ethernet and Optical Future Strategy– Industry Invitation to Input
Issue 1.0 - 25th January 2013
Issued by Openreach
© British Telecommunications plc 2013 Page 2 of 14
Contents Page
1 Purpose and Overview 3
2 Document Description 5
3 Shaping the Portfolio to Address the Market 6
3.1 Overall Communications Provider “Cost of Ownership” 7
3.2 Additional Network Agility 8
3.3 Business Focussed Delivery 8
3.4 Market Sector Expertise 9
4 General Comments / Feedback 10
5 Guidance on Responding to this Document 10
Annex A: Industry previously prioritised SoRs 11
Annex B: Glossary of Terms 13
Ethernet and Optical Future Strategy– Industry Invitation to Input
Issue 1.0 - 25th January 2013
Issued by Openreach
© British Telecommunications plc 2013 Page 3 of 14
1 Purpose and Overview
Openreach customers are increasingly using Ethernet and Optical connections to meet a buoyant demand for bandwidth in the UK. Our customers are addressing this by using faster, secure and resilient services to build network infrastructure and to onward sell access services.
Market growth and the reliance on network to support „cloud‟ application and service models, e-Commerce trading, Mobile and IPTV traffic as well as business critical and sensitive data places more importance than ever on the speed, quality and range of connectivity options that we offer.
We want to ensure that our Ethernet and Optical portfolio support you and your customers‟ with readily available and reliable connectivity and to provide solutions that can support your successful market expansion.
This document looks at the key market sectors and considers some of the service needs that could generate market growth.
We invite your input – to help verify the importance and value of market needs outlined and to offer other ideas with clearly defined market benefit.
This document is a prelude to the „Ethernet Future Strategy Conference‟ (at the BT Tower on 29th
January 2013) and to inform on-going bi-lateral and Ethernet Products and Commercial Group (P&CG) dialogue through which we can explore these ideas and rationale.
Our approach responds to industry requests for more information of Openreach‟s Ethernet and Optical portfolio strategic direction. We are keen to work with our customers with clear focus on:
Key target market sectors within your business plan (highlighting your own priorities and dependencies)
Your views on the market opportunities and the value (revenue, volume or % uplift in circuit sales) that you could generate from each.
Any other market opportunities or ideas for specific product, network or service solutions which you believe have material value.
It is vital that Openreach targets the most valuable market opportunities with the best solutions to ensure that our collective development efforts are focused where benefits are greatest.
We welcome your input to this process (as guided in Section 5) and we will help you to understand more of our current initiatives and thoughts for the future during the Ethernet Future Strategy Conference at the BT Tower on 29 January 2013.
Ethernet and Optical Future Strategy– Industry Invitation to Input
Issue 1.0 - 25th January 2013
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An illustrative overview of some of the key Openreach Ethernet and Optical products is shown below as reminder of key products currently within our portfolio.
Ethernet and Optical Future Strategy– Industry Invitation to Input
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2 Document Description
Within Section 3, this document considers some key market sectors and service needs of Ethernet and Optical products reflecting feedback from our customers and other market analysis. Section 5 of the document advises on how to provide input on the ideas listed and provide your own ideas.
Caveats
Ideas explored in this document are forward-looking and as wider market needs change, we anticipate that this will influence the actual portfolio evolution.
Development progression is subject to Openreach governance.
This exercise is not focussing on price levels. Pricing is a subject of other separate discussions.
The information provided is for information purposes only, represents no commitment and is not intended to be an offer in whole or in part.
The products and services defined in this document are provided subject to British Telecommunications plc terms and conditions and the Openreach Price List at www.openreach.co.uk/orpg/pricing/pricing.do
All timescales are target estimates only.
Information contained represents Openreach thinking at the time of writing and dates and details are subject to change.
Any developments carried out by customers based on the contents of this document are entirely at the your own risk.
Confidentiality Statement
The information provided herein is confidential and should not be disclosed to anyone without the express permission in writing from British Telecommunications plc.
The information must not be used, disclosed or modified without express permission in writing from British Telecommunications plc. Registered office: 81 Newgate Street London EC1A 7AJ, Registered in England no. 1800000
Ethernet and Optical Future Strategy– Industry Invitation to Input
Issue 1.0 - 25th January 2013
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3 Shaping the Portfolio to Address the Market
Future Ethernet and Optical service demand will be driven by factors such as the growth in the usage of bandwidth hungry technology (Mobile, Converged Media and IPTV) together with the rise and reliance of businesses on network connectivity / internet presence for „cloud‟-based operations, video conferencing and e-commerce trading.
Our challenge as an industry is to meet the market appetite for this increasingly connected world with business process, network and systems solutions that make their experience compelling and productive.
We have considered, and invite your input on, the service needs of the following key market sectors:
Mobile Data Centres (sell to DCs and to DC users)
Finance Public Sector
Infrastructure (including own use and build into DCs)
Construction (commercial new build for any sector)
Media & Broadcasting
Retail (Corporate)
Customer Response Prompt 1: Please confirm whether these are the most useful market sectors to consider or whether to you would suggest other sectors worth special focus.
A review of market analysis and previous customer feedback has identified service needs we have placed into the following categories:
Overall Customer “Cost of Ownership”
Additional Network Agility
Business Focussed Delivery
Market Sector Specific Needs
Customer Response Prompt 2: Please indicate for each of these market sectors their importance to your business. Where possible please advise of the value (£ or cct volume % uplift) to your business of each sector. If you believe that a different approach to defining target sectors would be more appropriate, please let us know.
Our focus on key market opportunities combined with your input, is designed to address the most commercially significant needs and maximise growth of the UK Ethernet and Optical market. This is to:
Give structure to this market requirements capture process,
Highlight where we are actively pursuing some of these opportunities
Note other requirements highlighted or captured in previous Industry input
Stimulate your feedback to help us better understand and commercially prioritise our development plans going forward.
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3.1 Overall Communications Provider “Cost of Ownership”
ID Possible Market Opportunities/ideas Origination (Industry SoR or other)
3.1.A Customers wanting richer data on line performance and test / management capability to enhance your own fault diagnostic services offered to end customers.
SoR 8166 High Density Handover for EAD Circuits + Enhanced OAM Capabilities
3.1.B Network architecture flexibility (i.e. Hub and Spoke, Ring and Chain, Dense Handover) to assist scalable and resilient expansion of your own infrastructure and to enable customer access circuit sales.
Aggregation solutions (with IL2 accreditation) may appeal to Public Sector and Mobile market (for base stations and switch sites).
SoR 8166 High Density Handover for EAD Circuits + Enhanced OAM Capabilities
SoR 8275 Optical Spectrum FSP3000 (OSA Enhancements) seeks Hub and Spoke solutions
SoR 8210 Update WES Agg to meet IL2 Standards
3.1.C Potential for higher bandwidth products for optimal ”cost of ownership” (e.g. 40G / 100G Optical products for Data Centres and your own Network Infrastructure) or 10G EAD to simplify migration / upgrade path for high bandwidth customers.
Access sales growth from Finance, Mobile (4G/LTE), IPTV growth and Corporate Cloud model adoption.
SoR 8275 Optical Spectrum FSP3000 (OSA Enhancements) seeks 40/100Gbit/s.
3.1.D Reducing the number of products / processes could simplify your operational costs (i.e. optimising the portfolio by withdrawing WES / BES / WEES 10Mbit/s up to 10Gbit/s (replace with EAD, EBD and Optical products).
SoR 8372 WES, WEES and BES 2.5Gb & 10Gb Product withdrawal from new sale.
SoR 8286 and 8287 Withdraw ONBS and BNS from new supply.
Customer Response Prompt 3:
We welcome your thoughts on the importance of addressing these types of market opportunities to your business and where possible a value estimation of each. It would be helpful if you could consider:
a) A prioritised view of the market opportunities that will benefit your sales the most?
b) Revenue, Volume / % take-up or other measure of value for each market need and ideas to address?
c) What other enhancements would you like to see offered (please add rationale / market
value supporting your view)?
Customer Response Prompt 4: We welcome your thoughts on the importance of portfolio optimisation and ideal timescales.
Ethernet and Optical Future Strategy– Industry Invitation to Input
Issue 1.0 - 25th January 2013
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3.2 Additional Network Agility
ID Possible Market Opportunities/ideas Origination (Industry SoR or other)
3.2.A As you and your customers (including Finance, Data Centre users) take more advantage of low cost Optical transmission, the benefits of different flexible, resilient and affordable network coverage and test / management capabilities may grow.
SoR 8275 Optical Spectrum FSP3000 (OSA Enhancements) seeks Hub and Spoke solutions + Test Management enhancements
SoR 8280 Optical Spectrum Datacentre “roll on roll off ” WDM solution
3.2.B Greater network presence for easier / faster provision to Data Centres.
Openreach initiative
3.2.C Growing resilience through the use of Ethernet and NGA.
Openreach initiative
SoR 8164 has also sought „Cross Product Resilience‟ on Ethernet products
3.2.D „Cloud‟ adopters with variable bandwidth needs may want more configurable flexible bandwidth changes.
New concept – Openreach initiative
Customer Response Prompt 5:
We welcome your thoughts on the importance of addressing these types of market opportunities to your business and where possible a value estimation of each. It would be helpful if you could consider:
a) A prioritised view of the market opportunities that will benefit your sales the most?
b) Revenue, Volume / % take-up or other measure of value for each market need and ideas to address?
c) What other enhancements would you like to see offered (please add rationale / market
value supporting your view)?
a) What other network agility enhancements would you like to see offered (please add rationale / market value supporting your view)?
b) How appealing are flexible bandwidth and billing consumption models? If interested, in what form would you want to see this?
3.3 Business Focussed Delivery
Items in this section focus on provision, network performance and assurance.
ID Possible Market Opportunities/ideas Origination (Industry SoR or other)
3.3.A Differentiated delivery timescales (e.g. potentially shorter lead-times where infrastructure exists and longer where it is not present).
The scale of market benefit and how much end users
„EAD Rapid‟ delivery is an Openreach initiative based on the existing Openreach process of faster provision on
Ethernet and Optical Future Strategy– Industry Invitation to Input
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would pay for such choice needs clarification.
Note – This type of idea may link to pre-building of networks (e.g. according to local or targeted factors.)
„Cat 1‟ orders (fibre present).
Additional Industry SoR 8119 (OSA and OSEA improved Lead Times)
3.3.B Differentiated service performance characteristics („uptime‟ availability rates, latency, etc…).
New concept – Openreach initiative
3.3.C Differentiated repair options for customers with specific service need.
SoR 8364 has requested an enhanced 3 hour repair option on EAD.
Customer Response Prompt 6: We welcome your thoughts on the importance of addressing these types of market opportunities to your business and where possible a value estimation of each. It would be helpful if you could consider:
a) A prioritised view of the market opportunities that will benefit your sales the most?
b) Revenue, Volume / % take-up or other measure of value for each market need and ideas to address?
c) What other enhancements would you like to see offered (please add rationale / market
value supporting your view)?
3.4 Market Sector Expertise
This section considers sector specific customer objectives.
ID Possible Market Opportunities/ideas Origination (Industry SoR or other)
3.4.A Finance, Data Centres, Central Govt. Carrying security sensitive data over optical circuits may derive value from new wavelength encryption solutions.
New opportunity – Openreach initiative
3.4.B Mobile (4G / LTE) and Utility sectors having Voice / Data traffic with critical timing dependencies will need solutions that support this on Ethernet (Sync E or your own use of 1588 v2 PTP).
SoR8167 Sync E Capable EAD
3.4.C Customers planning to replace or refurbish customer equipment may wish to utilise additional engineer support services.
Customers with complex or time-critical projects may require Migration or other Project Management support.
Customers may value additional support services or other features within a package proposition.
New concept – Openreach initiative.
Customer Response Prompt 7: We welcome your thoughts on the importance of addressing these types of market opportunities to your business and where possible a value estimation of each. It would be helpful if you could consider:
a) A prioritised view of the market opportunities that will benefit your sales the most?
Ethernet and Optical Future Strategy– Industry Invitation to Input
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b) Revenue, Volume / % take-up or other measure of value for each market need and ideas to address?
c) What other enhancements would you like to see offered (please add rationale / market
value supporting your view)?
Customer Response Prompts 8: Please advise if there is any combination of product, service or engineer / management support options that you believe would generate market value.
4 General Comments / Feedback
In considering market opportunities, we have sought to cover the most significant areas that may be of interest to you and your end customers. Additional to the prompts for response throughout the document, we welcome any other input including:
Customer Response Prompts 9: Please advise if you have any significant plans to invest in Ethernet and Optical services and any specific service enhancement enablers to that plan.
Customer Response Prompts 10: We welcome any other feedback from you on any aspect of this document or ideas for future evolution of the Ethernet portfolio.
5 Guidance on Responding to this Document
Publication of this document initiates a period within which we wish to hold dialogue with our customers, both through Industry Forums and bi-lateral meetings as required.
We are seeking formal responses on the market sectors, service needs and portfolio enhancement ideas outlined together with any other material feedback in writing by Friday 21 March 2013. Your Sales & Relationship Manager (SRM) or Andrew Sheppard
(contactable at [email protected] ) will be happy to assist with this process.
We will share more of our ideas for potential portfolio evolution at the „Ethernet Future Strategy Conference‟ on January 29 2013. If you wish to hold bi-lateral discussions with Openreach to explore ideas further prior to submission of your response, then please contact your Sales and Relationship Manager to arrange this.
Any customer commercial or other sensitive information shared within formal responses or bi-lateral discussion will be kept confidential in accordance with your wishes.
Responses should follow a structure that reflects the priority, value, timescales and any other relevant feedback on how best to maximise market growth through portfolio enhancement. Your SRM will provide additional information on that structure after the Conference.
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Annex A: Industry previously prioritised SoRs
Below is a snapshot list presented by members of the Ethernet Products and Commercial Group at a meeting on 17 October 2012. It represents Industry prioritised views of Ethernet SoRs that were live at the time (and includes some NGA and Infrastructure SoRs that were of interest).
Rank Group Ref Title
Status
1 Ethernet 8080 Deemed Consent Reporting - Replacement for SOR6878
Captured in EST / L2C work. Process trial planned.
2 Ethernet 8326 Expedite at Point of Order and In Flight Ethernet Services ordered via EST.
In progress through EST programme
3 Ethernet 8289 Excess Construction Charges on the Equivalence Management Platform: band selection at KCI2
In progress through EST programme
4 Ethernet 8325 ECC Dialogue Service In progress through EST programme
5 Ethernet 8165 Pro-actively Manage Order Issues to Prevent Delay
In progress through EST programme
6 Ethernet 8224 Advanced and automated Ethernet T2R journey
In progress through EST programme
7 Ethernet 8169 Ethernet Strategic Transformation (EST) - Ethernet Access Direct Strategic Portal and B2B
In progress through EST programme.
8 NGA 8344 Wires Only FTTC (GEA HE) to non-served premises
NGA progressing
9 Ethernet 8323 Duct Connectivity to New Sites Industry Dialogue Ongoing
10 Ethernet 8166 High Density Method of Handover for EAD circuits + Enhanced OAM Capabilities
Industry Dialogue Ongoing
11 NGA 8170 MOU and Business Premise solution for FTTP
Pilot in progress
11 Ethernet 8347 In-band Standards-based Ethernet NID Access
Industry Dialogue Ongoing
13 NGA 8225 NGA network features for Business Services
Rejected
14 NGA 8335 In flight Order Amendment Industry Dialogue Ongoing
15 Ethernet 8237 EAD radial distance limitation Completed
16 Ethernet 8263 Access Network Visibility for Resilient Circuits
Industry Dialogue Ongoing
17 Ethernet 8119 Optical Spectrum Access & Optical Spectrum Extended Access improved lead times
In progress currently
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18 NGA 8355 Provision of FTTP new site Marketing list
Industry Dialogue Ongoing
19 Ethernet 8210
Update the WES Aggregation, WES/WEES, BES 2.5Gb and 10Gb and OSA (ADVA FSP2000) products to meet IL2 standards
Split by product. WES Agg dialogue ongoing. Others closed.
20 NGA 8345 SyncE over FTTC, FTTP & FTTP on demand
Industry Dialogue Ongoing
21 Ethernet 8275 Optical Spectrum FSP3000 In progress currently
22 NGA 8346 Enabling FTTx appointment /date amendments pre-KCI2
Industry Dialogue Ongoing
23 Ethernet 8167 Synchronous Ethernet Capable EAD 100 & WES/EAD 10000
In Progress
24 Ethernet 8026 Re-design EAD shelf management connectivity when located in BT exchanges.
Parked, pending re-clarification of ask by Industry
25 Ethernet 8353 Sync-E timing source in an exchange Access Locate space
Rejected
26 Ethernet 8078 PPC & RBS Transfer to Connectivity Services Ethernet products
Industry Dialogue Ongoing
27 Ethernet 8176 AISBO Interconnection services Industry Dialogue Ongoing
28 NGA 8356 Label FTTP ONT with “How to order service”
Industry Dialogue Ongoing
28 Infrastructure Products
8358 Mobile Infill Infrastructure Solution Infrastructure team progressing
30 Ethernet 8155 EAD L2C B2B Enhancement to Include Additional Information
Industry Dialogue Ongoing
30 NGA 8161 Backhaul for NGA Industry Dialogue Ongoing
32 Ethernet 8287 Backhaul Network Services (BNS) withdrawal
Completed
33 Ethernet 8286 Openreach Network Backhaul Services (ONBS) Withdrawal
Completed
34 Ethernet 8348 EBD Vertical patch panel connectivity standards
Completed
Other SoRs mentioned in this document, but not part of the previous Industry prioritised list were:
N/A Ethernet 8364 Ethernet Enhanced Repair Industry Working Sessions
N/A Ethernet 8280 Optical Spectrum Datacentre “roll on roll off ” WDM solution
Industry Working Sessions
N/A Ethernet 8372 WES, WEES and BES 2.5Gb & 10Gb Product withdrawal from new sale
Industry Working Sessions
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Annex B: Glossary of Terms
Abbreviation Full Name
BES Backhaul Extension Service
BNS Backhaul Network Service
BT British Telecommunications plc
CP Communications Provider
EAD Ethernet Access Direct
EBD Ethernet Backhaul Direct
ECC Excess Construction Charge
EMP Equivalence Management Platform
End Customer Direct customer of a Communications Provider (CP)
FTTP Fibre To The Premise
GEA Generic Ethernet Access
IPTV Internet Protocol Television (TV delivered over IP network)
L2C Lead to Cash
LTE Long Term Evolution (high bandwidth mobile service)
MOU Multiple Occupancy Unit (i.e. multi-tenanted commercial buildings)
New Sites Sites without existing communications network infrastructure supplying service. Also referred to as „Greenfield‟.
NGA Next Generation Access
NTE Network Termination Equipment
OAM Operations, Administration and Maintenance
OHP Openreach Handover Point
ONBS Openreach Network Backhaul Service
ONT Optical Network Termination (NGA Product customer premises NTE)
OSA / OSEA Optical Spectrum Access / Optical Spectrum Extended Access
PPC Partial Private Circuit
SFBB Super Fast Broadband
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SRM Sales and Relationship Manager
T2R Trouble to Repair
WEES Wholesale End-to-End Service
WES Wholesale Extension Service
** END **