The ICT Network 2020 Evolution From the Single to the Massive and Efficient Connectivity

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1 The ICT Network 2020 Evolution From the Single to the Massive and Efficient Connectivity Fernando Velazquez Chief of Technology and Information Officer CNBG Marketing- Latinamerican Region June

2 Massive data blast and connectivity are emerging

3 Today, there is considerable interest in building faster and proficient networks. Household and Industry s bandwidth utilization and Data usage US Streaming Hi-Def Movie on Smart TV Sending Streaming Video on Smart TV Social Media Streaming Music ~1.6G/Month 12.06Mbps 5.30 Mbps 0.08 Mbps 4.00 Mbps 0.03 Mbps 2.00 Mbps 42% Smart phones 32% Tablets LATAM ~645Mb/Month 3.17Mbps Streaming Mid/Hi-Def Movie 1.39 Mbps Sending Mbps Social Media 0.81 Mbps Gaming 0.6 Mbps Others 0.31 Mbps Playing online game Audio call with other players Social Media Skype with Friends 0.02 Mbps 0.30 Mbps 0.03 Mbps 0.30 Mbps 150Mb/hr 5x last 3 years 1.19Gb/Month >5 Mbps Source: OTT Communications Dec

4 But, there is a Gigantic Gap in Services & Network Requirements v 3G 4

5 More Efficient Networks are now part of the Business Objective LOSING CUSTOMER RELEVANCE 41 APPs per person 2016 Ott applications are becoming the user s choice Unlocking revenues growth opportunities HIGH DEMAND GROWTH MODERATE REVENUE GROWTH CAPEX AND OPEX OPTIMISATION 11xDATA %REVENUES %CAPEX 4%OPEX Networks will serve an everincreasing volume of data, enabling a vast array of innovative services Unlocking monetisation opportunities Connectivity need to be provided on a cost-effective and sustainable basis building more efficient networks / reduce capital intensity Business Objective Building efficient networks able to adapt to growing demands and complexity 5

6 The Awaken of Network heading to

7 The network needs to be transformed into 3 Key Philosophies Hardware resource pooling Fully automated operations Distributed software architecture DC Selfservice Selfhealing Elastic scale-in/out Access side WAN Selfdeployment Selfoptimization Micro-service Stateless design Resource utilization improves 100% Operational efficiency improves by 100 times Service TTM Months -> Days 7

8 Overall Network 2020 Design Principle and Methodology Business Objectives B2C market B2B/B2G market Technology Feasibility Product maturity Complexity of implementation Cost of solution Status of Subsidiary Network topology & latency EOS timetable Population Distribution CO locations Overall Principles Service & Experience driven Focus on product maturity Phased pragmatic approach Compatible & coexisting with legacy system Automation & Robustness Business Design Based on market analysis, service planning to fulfill business strategy Allocate service to different level DC to secure experience Architecture Design Service driven architecture evolutions To achieve DC-Centric, SDN/NFV based foundation, for E2E agile service deployment and delivery Cloud DC Design Meet latency requirement between DCs Compatible with current administrative region Cover majority of valuable population Reuse the current CO VNF Design Control plane first, media plane later Virtualize the incremental part, and integrate with the legacy network. Stepwise migration before EOS DC-Centric Bearer Network Design SDN data center network when doing DC construction To meet criteria set for security, robustness, and agility 8

9 Expanding from Traditional B2C Services to B2B/B2G Services IMS service VoLTE (voice, video), VoWiFi VoBB RCS, UC B2C service Video service Mobile video Pay TV IPTV, 4K TV FMC video IoT service Mass market Connected Car (Telematics) Wearable device &Kids/senior tracker Smart Home (Monitoring\automation ) Enterprise & Cloud service Cloud VPN Cloud WiFi & Thin CPE & ICTin-a-box BOD Secure cloud broadband (BOD + Cloud VPN) SD-WAN Enterprise selfservice portal Virtual Private Cloud Hybrid Cloud mgmt. VDI SAP HANA Service (HEC) Government Cloud Different Vertical Clouds Database Services Security Services vdc Other IaaS/PaaS/SaaS B2B/B2G service IoT service IoT MVNE Platform (vepc) IoT Connectivity (5G Network Slice) Connected Car (LTE-V, V2V) Smart City (Monitoring) Smart Metering (NB-IoT applications) Smart POS (for retail) Fleet management (Logistics firm users) IoT for verticals Big Data & Platform mcommerce portal Big data analytics platform Network Capability Exposure platform Mobile Ads Platform Others vcloud BBU vcdn mbanking and more. 10

10 Architecture of Network 2020 in 3 Layers The goal is to achieve DC-Centric, SDN/NFV based foundation, for E2E agile service deployment and delivery Telco OS End-to-end Business Orchestration 3 rd Parties IES Orchestrator Big Data BES Assurance Self-operated Business Virtualized Core Network Agile Network Value Added Service IT Applications SDN Controller DPI Video Ringtone FW OpenStack-based Cloud X86 Server Storage Network X86 Server Storage Network X86 Server Storage Network Edge DC Metro Regional DC Backbone National DC 11

11 DC Design to accommodate experience requirements User/Enterprise Edge DC Regional DC National DC 20KM 300KM 300+KM 1ms 30ms 50ms 100ms+ 5G/IoT vcdn/nfvi Desk & Enterprise &Network Cloud CDN Public Cloud Service/Hosted Cloud/Web Type Scenario Latency business considerations location Public Cloud Services IaaS/PaaS/SaaS Low,>100ms low cost, centralized deployment, centralized operation National DC Hosted Cloud Services Government & Enterprise Low,>100ms high reliability,high security, data localization Edge DC CDN CDN (HD Video) Normal, <50ms Numerous nodes,reduce latency,increase bandwidth Edge DC Desk Cloud Services VDI High,~20ms Reduce latency, improve experience Regional DC New Cloud Services IoT / Car Networking High,<10ms Numerous nodes, low latency, low jitter, high reliability Edge DC Finance / car networking High Frequency Trading High,<1ms Very low latency Dedicated Resource 5G 5G High,<1ms Very low latency Edge DC 12

12 DC Design Methodology Step-1: Preliminary DC location design Step-2: Accurate DC location design (Pop/Economic/Admin district) Legacy network Additional factors Service requirement Fiber avail. Comple. CO avail. DC architecture, 1/2/3 IP core hub Core/Signalling hub Legacy DC Metro hub site Core site Media plane IP Agg. site Cloud VPN Local CDN Geographic/Local policy/human resource N-DC coverage R-DC coverage E-DC coverage Latency/bandwidth/reliability N-DC capacity R-DC capacity E-DC capacity Latency/Bandwidth/Reliability Road/Airport/Energy Floor space/power/cost of reform N-DC location R-DC location E-DC location City level Service flow Site level DCI Arch. DCI Bandwidth DCN design (real-time, on-demand, agile) 13

13 Design the NFV evolution path based on existing infrastructure Phase 1 Virtualization APP APP APP HW HW HW Network Function Virtualization Unified Platform Buildup Phase 2 - Virtualization + Service Migration + Automation APP APP APP DC Infrastructure Application Virtualization E2E Orchestration SDN & NFV Synergy + Service Migration M A N O Slicing Phase 3 Cloud Native Assembling Platform as a Service DC Infrastructure On-Demand Network Function Service Oriented Architecture Network Slicing & Assembly Chaining DC Infrastructure DC Based Telecom Cloud Platform for All Applications 14

14 Business Value How To Deploy? -- NFV deployment schedule High AN Control EMS,NMS CPE EPC, DRA IMS, PCRF Principles: Focus on high business value network element Focus on low complexity network element Transfer Core Router DSLAM OLT BRAS Business Recommend starts with IMS/PRCF/EPC/DRA low Optical Device High Complexity Low 15

15 SDN Rollout to achieve operation automation SDN Controller Third Step SDN Unified Controller Second Step Controller 1 Controller 2 First Step Controller Access SDN Controller pool Controller vdc/vbas/vcpe/ipran vdc SDN Controller pool Controller 1 Controller 2 SDN-WAN/IP+Optical DCI/Backbone SDN Controller Controller 1 Controller 2 DCN Local DC &CO Regional DC Central DC Family Enterprise OLT DCN Site MBH Edge Router Metro Network Core Router Backbone Network Principle:layered, domain-based SDN Controller rollout Backbone SDN Controller:Redundancy for anti-disaster, rollout on separated DC 16

16 Business Value How to Deploy? ---Roll out Principle: Business first, Services first, Easy first High Data Center DCN DC DCN Service Chain IP+ Optical Service Chain Backbone Business Enterprise VPN Simply operation T- IP traffic optimize WAN Enterprise VPN Low SDN IP Backbone Optimize Bearing Network T-SDN IP traffic optimize IP+ optical High Complexity Low Time Line Data Center is first to be deployed by SDN introducing, which includes DCN 17

17 Different carriers are evolving to Network

18 ICT Architecture Reconstruction driven by Digital Transformation " becoming industry hot spot C.O.D.E.R.S Connected Open Delightful Efficient Responsive Smart Domain 2.0 PAN NET UNICA Agile 2020 Network 2020 Arcstar UNIFY Network 2020 Universal One Network 2020 CUBE-Net 2.0 Customer-oriented Content-oriented Cloud-Oriented Ubiquitous- Broadband Elastic Network NovoNet 10 Years Net Reconstruct CUBE-NET Orange Essential A Holistic Transformation of Business, Architecture, Network & Operations for ICT Agile Telco 19

19 Let s build joint team for this new journey facing 2020 Network. 20

20 Takeaways Elasticity, Reliability and Agility for the Network, is the key towards 2020 Network transformation is the way for carrier digital transformation New DNA for Networks are coming: Cloudify, Massive, Bandwidth, Latency, Convergence

21 Thank you! Copyright 2017 Huawei Technologies Co., Ltd. All Rights Reserved. The information in this document may contain predictive statements including, without limitation, statements regarding the future financial and operating results, future product portfolio, new technology, etc. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied in the predictive statements. Therefore, such information is provided for reference purpose only and constitutes neither an offer nor an acceptance. Huawei may change the information at any time without notice. 22

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