NGN Strategies and Services

1. NGN Strategies and Services Raman Krishnan Detecon Inc. Reston, VA CANTO 2006 Punta Cana, June 19 2006

2. Content 1. Telecom Market Dynamics 2. NGN & Value Proposition 3. NGN Lifecycle Management 4. NGN Services 5. Migration Strategies Case Studies 6. NGN.PPT

3. SalesCo NGIA ServCo NGN NetCo 1. Telecom Market DynamicsTechnology driven break-up of the value chain Yesterday‘s Monopoly Today‘s Monolith Tomorrow‘s Disintegration New Business Paradigm • The technology-driven breakup of the telecom value chain will lead to a segmentation of the telecom business model. Liberalization/ De-Regulation Value AddedServices CPS, Call-by-Call,VAS (IP-) Applications NGN proprietary interface open interface Call handling Signaling & IN Call handling Signaling & IN IP-based Control open interface TDM-Transport TDM-Transport IP-Transport • 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 NGN.PPT

4. 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 ... What is NGN? - New Technology? Why NGN ? Competitive advantage? Reduce cost? CTO NGN • How? • What is the migration • path? • When? • Schedule • Time to Market NGN.PPT Can NGN be ignored?

5. NGOSS - Operation & Maintenance Provisioning Billing CRM ApplicationPlane Application … Application … Application … Application … Application … Application … Application 1 Application 2 Application 3 Non-Voice Voice Service Delivery Platform MVNO MMS LBS OTA Presence Network APIs Service Enablers SMS IVR Content Optimization PARLAY OSA SDP SDP ControlPlane HSS / AAA IMS NASS / RACS xGSN / Mobile IP Policies / Resource & Admission Control TransportPlane IP (GRX / CRX) PEP AggregationPlane PEP ATM, SDH, Ethernet AccessPlane PEP … … iDEN WiMAX CDMA FLO / DVB-H DSLAM / FTTH Cable Customer Equipment PEP Connected Appliances IPTV UMA Converged Device (w)VoIP 2. NGN and Value Proposition • Why NGN matters... Value Proposition • 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 NGN.PPT

6. 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 Drivers of Network Transformation NGN Model Legacy Network Model Market/Customers • Strong Competition in the Telecom market Place Services & Applications PSTN Data PLMN Services, Switching, Network Mgmt. Transmission / Transport Move to NGN: from a vertically layered to a horizontally layered network architecture Services Open Protocols e.g.. Parlay, OSA, JAIN Network Management, Business support layer, enabling capabilities Call / Session Control • Trend towards converged services • Integrated Services (Quadruple Play) • Differentiated Services Open Protocols e.g.. SIP, MGCP, H.248 Transport & Connectivity Technology • Obsolescence of TDM Technology • Open Architectures • New Access Technologies • New Terminal Devices Impact of Network Transformation • 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 NGN.PPT Platforms/Production • Limited growth with legacy NW • Increased OPEX for legacy NW • Emerging Vendors

7. 2 1 5 4 3 3. NGN Lifecycle Management Introduction of NGN services demands due diligence and a well defined set of processes Analysis of Existing Network Formulation of NGN based services Definition of NGN Blueprint NGN Business Plan Organization and Human Resource Competence Key Functional Elements Demand Forecast for NGN Services CAPEX/OPEX Analysis Data Collection of Legacy Network Organizational Analysis Analysis of Proposed NGN System Gap Analysis b/w Legacy and NGN Services Organizational Design Transformation Scenarios Business Case Scenarios Competence Model and Analysis Gap Analysis Numbering System Strategy for NGN Transformation Investment Policy & Financial Evaluation Transformation Management Best Practices Deployment Plan Timeline for Transformation Risk Assessment & Sensitivity Analysis NGN.PPT Implementation via RfP, Vendor Selection, Project Management

8. 1st Stage Clustering 2nd Stage Clustering 3rd Stage Clustering 4. NGN Services Analyze Current, Planned, and Future Telecommunications Services for the NGN infrastructure Transport QoS PSTN Access Web Portal Presence IT Capabilities 3rd Party Delivery Transport Predictability Sensory Interfaces Predictability & Broadcast Network Services IT Biling, Security.. • Audio • Telephony • Telephone Conference • VoIP (e.g. Skype) • Audio Streaming • Audio on Demand/ Download • Audio-Visual • Video Phone • Video Phone Conference • Video on-Demand • Video Download • Video Sharing Core Services IPTV NGN.PPT • Visual • Data • Web Page • VideoSupervision • Web Camera • Data on Demand • Data Sharing • Data Streaming/ Broadcasting • Data Conferencing(Gaming)

9. 4.1 Internet Protocol TeleVision (IPTV) ServiceWhat is driving and inhibiting a Carrier’s success with IPTV? A robust NGN architecture will help realize the IPTV service… Growing Competition Changing Customer Behaviour • 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 New risks IPTV: Go Or No Go? New opportunities • 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 NGN.PPT Changing Business Models Technological Innovations • 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.

10. Success = V > P > C Success = V > P > C Major Success = V > P >> C Major Success = V > P >> C 5. Migration Strategies Migration Strategy must encapsulate business drivers in order to minimize risks and maximize returns How to Manage Migration? Overlay Strategy (Revolutionary) • 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 Migration Paths NGN Enabled New Merge OSS/BSS, Migrate Customers Replace Strategy (Evolutionary) • 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 Migration Path Services Add Services, Extend Footprint Today Legacy NGN.PPT Legacy NGN Infrastructure Value > Price > Cost Equation V C V P C Actual Actual COST to Supply Service COST Perceived VALUE to Customer Market PRICE Market PRICE Perceived VALUE to customer

11. Scenario 1 Scenario 3 Scenario 2 • 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... Wireline (TDM) Wireline (NGN) • 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 • 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 Converged Wireline & Wireless (NGN) Wireless (2/3 G) Wireless (2/3 G) Factors to Consider • 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 5.1 NGN Migration Approach No Single Universal Strategy to optimize the migration process. Specific Infrastructure and Business Needs have to be considered… KPI Definition? Regulatory Impact? NGN.PPT

12. 6. Case Study – NGN initiatives Measurable results with respective top-line and bottom-line impacts are the unique benefits... Strategic Network Planning and Optimization Design and Planning of a NGN Network Large Operator in Latin America Service Provider in Europe • Planning of a nationwide NGN • Assuring the tender • Evaluation of the bids and selection of the provider NGN Design, Planning and Implementation • Need for a single multi-service network • Flexible and future-proof • Improved availability • Scalability for future growth in IP traffic Challenges Challenges • 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 • Design and Planning of MPLS Core Network • QoS Definitions • MPLS Deployment Strategies • End-to-End demand matrix for NGN services Solution Solution • 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 NGN.PPT • Reduced Operating Expenses • Improved Network Management via centralized OSS and BSS Benefits Benefits Measurable Return-on-investment (ROI) on invested project budget!

13. Q & A Thank You For Further Information, Contact:Raman KrishnanDirector, Detecon Inc.Reston, VAEmail : raman.krishnan@detecon.comPh: 703-480-0815 NGN.PPT