ngn strategies and services canto 2006 punta cana, june 19 2006 raman krishnan detecon inc. reston,...

NGN Strategies and Services

CANTO 2006

Punta Cana, June 19 2006

Raman Krishnan

Detecon Inc.

Reston, VA

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N.P

PT

Content

NGN Lifecycle Management3.

NGN Services4.

NGN & Value Proposition2.

Telecom Market Dynamics1.

Migration Strategies5.

Case Studies6.

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PT

The technology-driven breakup of the telecom value chain will lead to a segmentation of the telecom business model.

Call handling Signaling & IN

TDM-Transport

Call handling Signaling & IN

TDM-Transport

CPS, Call-by-Call,VAS

IP-based Control

IP-Transport

(IP-) Applications

Yesterday‘s Monopoly

Today‘s Monolith

Tomorrow‘s Disintegration

Liberalization/ De-

Regulation

open interfaceproprietary interface

Carrier has control of the entire PSTN

There is only one business model

Carrier defines the business model

Carrier controls (customer) access and control layer

Competitor restricted to reselling and wholesale

Business model defined by price competition

The network is split into three independent layers with IP as the common protocol and open interfaces between layers

Different entities may operate in all layers

Separate business models emerge for sales, service and access/transport

open interface

SalesCo

NetCo

ServCo

NG

NN

GIA

Value AddedServices

New Business Paradigm

NGN

1. Telecom Market DynamicsTechnology driven break-up of the value chain

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1.1 CTO Intelligence

A technology radar is created to identify, categorize, and prioritize emerging technologies with business relevance. NGN features prominently on the CTO dashboard ...

NGN

What is NGN?- New Technology?

Why NGN ?Competitive advantage?Reduce cost?

How?• What is the migration path?

When?• Schedule• Time to Market

CTO

Can NGN be ignored?

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2. NGN and Value Proposition

IMS

IP (GRX / CRX)

Cable CDMA

ApplicationPlane

ControlPlane

TransportPlane

AggregationPlane

AccessPlane DSLAM / FTTH

ATM, SDH, Ethernet

Policies / Resource & Admission Control

Customer Equipment

PEP

PEP

PEP

PEP

Ap

plic

ati

on

1

Ap

plic

ati

on

2

Ap

plic

ati

on

3

Ap

plic

ati

on

…

Ap

plic

ati

on

…

Ap

plic

ati

on

…

Non

-Voic

e

Voic

e

iDEN WiMAX FLO / DVB-H

HSS / AAAxGSN / Mobile IP NASS / RACS

Service Enablers

…SDP

Ap

plic

ati

on

…

Ap

plic

ati

on

…

Ap

plic

ati

on

…

MVNO

MMS LBS OTA PresenceSMS IVR Content

Optimization

Service Delivery Platform

…SDP

NG

OS

S - O

pe

ratio

n &

Ma

inte

na

nc

e P

rov

isio

nin

g B

illing

CR

M

(w)VoIPUMA IPTV Converged

Device

Connected Appliances

Network APIsPARLAY OSA

Access agnostic call control and service delivery

Standards-based architecture and interface definition Reduced vendor dependency

Open and standards-based service creation environment Enhanced features at lower cost and with

faster deployment

– e.g. user preference, profiling, and PBX-type voice calling

Customized feature bundles

– e.g. Call offering based on location and presence

Personalized feature control for end user

Convergence opportunity Service: voice, data, video, streaming,

and IM

Network: wireline and wireless

Technology: fixed and mobile

Value Proposition

Why NGN matters...

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2.1 Telecommunication Network Transformation

As strong drivers transform the telecom business model, CTO‘s are facing significant challenges; Implications of the transformation of a Legacy Network towards NGN

Impact of Network Transformation

Services & Applications

Services, Switching, Network Mgmt.

Transmission / Transport

Legacy Network Model NGN Model

Call / Session Control

Transport & Connectivity

Open Protocols e.g.. Parlay, OSA, JAIN

Open Protocols e.g.. SIP, MGCP, H.248

Net

wo

rk M

anag

emen

t,B

usi

nes

s su

pp

ort

laye

r,

enab

ling

cap

abili

ties

Business model must be reviewed and adjusted

Operations and business processes must be changed

Organization structure must be adapted

Human resources profile must be adjusted

PSTN Data PLMN

Move to NGN:from a vertically layeredto a horizontally layerednetwork architecture

Drivers of Network Transformation

Market/Customers■ Strong Competition in the

Telecom market Place

Services■ Trend towards converged

services■ Integrated Services (Quadruple

Play)■ Differentiated Services

Technology■ Obsolescence of TDM

Technology■ Open Architectures■ New Access Technologies■ New Terminal Devices

Platforms/Production

■ Limited growth with legacy NW■ Increased OPEX for legacy NW■ Emerging Vendors

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3. NGN Lifecycle Management

Analysis of Existing Network

1

Formulation of NGN based

services2

Definition of NGN Blueprint

3

NGN Business Plan

4

Organization and Human

Resource Competence5

Data Collection of Legacy NetworkData Collection of Legacy Network

Analysis of Proposed NGN

System

Gap Analysis

Best Practices

Organizational Design

Competence Model and Analysis

Organizational Analysis

Transformation Management

CAPEX/OPEX Analysis

Business Case Scenarios

Investment Policy & Financial Evaluation

Risk Assessment & Sensitivity Analysis

Demand Forecast for NGN Services

Gap Analysis b/w Legacy and NGN

Services

Strategy for NGN Transformation

Timeline for Transformation

Key Functional Elements

Transformation Scenarios

Numbering System

Deployment Plan

Implementation via RfP, Vendor Selection, Project Management

Introduction of NGN services demands due diligence and a well defined set of processes

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4. NGN Services

Analyze Current, Planned, and Future Telecommunications Services for the NGN infrastructure

3rd Stage Clustering

2nd Stage Clustering

1st Stage Clustering

Core Services

Audio-Visual

Data

Audio

Visual

Telephony Telephone Conference VoIP (e.g. Skype) Audio Streaming Audio on Demand/ Download

Transport QoS PSTN Access Web Portal

Presence IT Capabilities 3rd Party Delivery

Sensory Interfaces Transport Predictability

Predictability & Broadcast

Network Services

ITBiling, Security..

Web Page Video Supervision Web Camera

Video Phone Video Phone Conference Video on-Demand Video Download Video Sharing

Data on Demand Data Sharing Data Streaming/ Broadcasting Data Conferencing(Gaming)

IPTV

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Overlapping services with non-tradional Carriers Price wars in voice and data business Emergence of low-cost service providers (e.g. Skype)

Willingness to switch to provider with best bundle Uncertain if carriers can provide reliable TV/Video Increasing demand for service integration

Growing Competition Changing Customer Behaviour

Selection of future proven broadband network topology for IPTV

High Capex of technology investments Content availability, acquisition costs,

security, liability Regulatory challenges

Differentiation through content selection and service features/functionaliities

Utilization of expertise in OSS/BSS to quickly add new services and features

Partnering with cellular provider to offer 4Play and/or with other players to strengthen market position

4.1 Internet Protocol TeleVision (IPTV) ServiceWhat is driving and inhibiting a Carrier’s success with IPTV?

New risks New opportunities

New pricing models for service bundless (communication combined with multiple subscription, rent or buy options)

Changing content distribution windows and fees

New home and access network capabilities to support higher bandwidth, multiple service QoS

New content delivery mechanisms, coding/decoding, etc.

Changing Business Models Technological Innovations

IPTV:GoOr

No Go?

A robust NGN architecture will help realize the IPTV service…

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5. Migration Strategies

Identify Migration Paths that achieve Business objectives

Consider renewed Business Models Controlled Introduction of NGN Technology

can help

Deploy an NGN network in parallel with the existing traditional switched network

Create Overlay NGN Network… But is Expensive and cumbersome to run two networks Can accommodate demand for new services without

disturbing existing network New customers on NGN Platform and existing customers

could be migrated over time

Replace legacy Network Elements(NEs) with NGN NEs Consider NEs at the end of their serviceable life Network requires careful planning in the short-term but ... Benefit of converged network can be reaped in the long-term Mix of „old“ and „New“ equipment demands careful

management

Se

rvic

es

Infrastructure

Today

NGN Enabled

Migration Paths

Overlay Strategy (Revolutionary)

Replace Strategy (Evolutionary)

How to Manage Migration?

Mig

ratio

n P

ath

Legacy NGN

Le

ga

cy

Ne

w

Add Services, Extend Footprint

Merge OSS/BSS,

Migrate Customers

PerceivedVALUE

to customer

Market PRICEActual COST

V CValue > Price > Cost Equation

Perceived VALUE to Customer

Market PRICEActual COST to Supply Service

Success = V > P > CMajor Success = V > P >> CSuccess = V > P > CMajor Success = V > P >> C

V P C

Migration Strategy must encapsulate business drivers in order to minimize risks and maximize returns

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5.1 NGN Migration Approach

No Single Universal Strategy to optimize the migration process. Specific Infrastructure and Business Needs have to be considered…

Scenario 1 Operator with Wireline and

Wireless Business Wants to secure and expand fixed line revenues Intense Competition from MSO and VoIP providers Considerations of lifecycle and maintenance cost Wireline Migration may start ahead of wireless...

Scenario 3 MVNO Could focus on specific

business functions and yet utilize NGN technology to deliver services

Focus on Content, Applications, Services, and CRM functions Outsource other functions/layers to „Best of Breed“ Operators

Interoperability with existing Network Elements

e.g. Billing and O&M

Compatibility with existing services

e.g. Push-To-Talk

Flexibility for future growth

Capability of CPE

End-to-End QoS

Security

Emergency Communications

Network Manageability

Factors to Consider

Wireline(TDM)

Wireless(2/3 G)

Wireline(NGN)

Wireless(2/3 G)

ConvergedWireline & Wireless

(NGN)

Scenario 2 Fixed Mobile Convergence

Operator FMC operators can justify more widespread NGN deployment relative to Mobile-only players Can strike the right balance between telco-centric and internet-centric services

KPI Defin

ition?

Regulatory Impact?

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Strategic Network Planning and Optimization

6. Case Study – NGN initiatives

Measurable results with respective top-line and bottom-line impacts are the unique benefits...

NGN Design, Planning and

Implementation

Design and Planning of a NGN Network

Measurable Return-on-investment (ROI) on invested project budget!

Evaluation of the customer allocation and the estimated traffic profiles

Planning of the capacity and the positioning of the switches

Evaluation of the technology Execution of the tender, evaluation of suppliers

and proposals, recommendation

Service Provider in EuropeLarge Operator in Latin America

So

luti

on

Ch

all

en

ge

s

Planning of a nationwide NGN Assuring the tender Evaluation of the bids and selection of

the provider

Reduced Operating Expenses Improved Network Management via

centralized OSS and BSS

Be

ne

fits

Design and Planning of MPLS Core Network QoS Definitions MPLS Deployment Strategies End-to-End demand matrix for NGN services

So

luti

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all

en

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s

Need for a single multi-service network Flexible and future-proof Improved availability Scalability for future growth in IP traffic

Higher Availability, network performance Faster time to market and cost optimized NW Efficient Planning, Optimization, & operational

processes Optimal & cost efficient NGN design Redcued OPEX by $1M per year

Be

ne

fits

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Q & A

Thank You

For Further Information, Contact:Raman KrishnanDirector, Detecon Inc.Reston, VAEmail : [email protected]: 703-480-0815

ngn strategies and services canto 2006 punta cana, june 19 2006 raman krishnan detecon inc. reston,...

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