Delivering the Promise. Roll the Film Take 1
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1 One Verizon
2 Delivering the Promise Roll the Film Take 1
3 Introduction Barry Grigsby Verizon Executive Director; Network Supply Chain Agility, Efficiency & Strategic Vision Supply & Demand Planning Project-Oriented Network Build Wireline Spares and Repair Experience Results Oriented experience across Operations, Supply Chain, Engineering, Marketing, and Organizational Development
4 2016 Revenue $126B 2000 Revenue $43.3B VDMS Network Architecture Wireline 29% Wireless 71% Wireline 78% Wireless 22% Technology Leadership & Innovation Fuel Growth
5 Communication is changing rapidly Customers expect instant and constant connectivity through Telecommunication Providers must effectively react and respond, the latest technology changing the way they do business 5
6 State of the Industry Wireless Trends for 2017 By 2020 the forecast for connected devices is 33B, or 4.3 devices/person Customers are using more data, but are not willing to pay for it New 5G service types will create "zero-failure" environments Intro of e-sim will reduce stickiness of customer Cyber-security methods must be expanded Cable Trends for 2017 Balance of power is shifting from cable companies to the consumer As VOD becomes more popular, the need for scheduling shows & notion of prime time will fade Advertising business models will change to meet consumers where they are, when they are 6
7 Global Supply Chain Wireless Devices Retail SC 1,600+ stores, 114M customers $1B+ Inventory Post-sales reverse intensive Broadband & Video Customer Premise Install SC for Residence and Business 5.7 M Fios Internet Subscribers 4.7 M Fios TV Subscribers OEM ODM/In-house design, Mfg. 4 Distinct Supply Chains Network Infrastructure Engineering Build SC 55,000+ cellular locations 6,000+ switching centers $15+B annual CapEx Global IP Network Enterprise Solutions SC Global Operate in 150 countries Configured to enterprise customers Customers 97% of Fortune 1000 $50B+ Annual SC Managed Spend
8 OneNetwork Roll the Film Take 2
9 OneNetwork Drive Network Efficiency Create Revenue Opportunities Simplify Services and Delivery
10 OneNetwork Evolution CURRENT Multiple network architectures VzW Fiber Network VzT & VzB Fiber Network VzW Hub VzT/B CO VzW Transport VzT Transport VzB Transport VzW Edges VzT Edges VzB Edges VzW Core Converged Core ONE Network SharedFiber Shared Facility Unified Transport (NGM) Multi-Service Edge Converged Core 93% IP Edge Platforms 90% Transport Platforms 73% Inter Office Circuit Cost 67% PON Access Cost Business Premise
11 Foundational Platforms 2. Access Unification [AU] 1. Unified Transport [NGM] OpNID AAC Off-Net L1 L2 L0 Unified Transport (NGM) L1 L2 L0 MESH TL ULH MPLS Core ULH Core AAC ONT NGPON2 OLT L1 L2 L0 VCP MSE Customer Premise / Cell Site Access Aggregation / CRAN Hub Regional Hub / MSC 3. Next Gen PON [NGPON2] 4. Multi Service Edge [MSE] Unified Access, Metro, Edge, and Core architecture
12 Unified Transport (NGM) TDM Legacy TDM Transport TDM Business Impacts: SONET ETH Legacy SONET (EoS) SONET ULH Lower cost of equipment due to combined L1/L2 in one platform. ETH Current ETH Legacy Ethernet (SES, CPA) Facilitates removal of legacy TDM Network equipment due to CES. Future 74 legacy platforms to 4 NGM platforms. TDM SONET ETH CES ETH Unified Transport (NGM) ETH ULH Combines Optical and Ethernet Transport in a single platform and eliminates TDM/SONET infrastructure by deploying Circuit Emulation Services (CES)
13 Access Unification Current Future VZ Ntwk VZ Ntwk NNI NNI Access Provider Network Access Provider Network -$ -$ -$ -$ Leased Circuits $: Circuit Revenue -$: Access Expense -$ Leased Circuit Physical Impact of Access Unification Access Aggregation Device AA-C Jumpers to Customer Suites $ $ $ $ $ $ $ $ Business Impacts: Aggregate multiple TDM and Ethernet leased circuits into one leased circuit to drive backhaul savings at a building level Unused backhaul capacity leveraged for new revenue growth $: Circuit Revenue -$: Access Expense Enable provisioning multiple customers & services through one leased circuit
14 Next Generation PON2 Future GPON GPON Business Services (SES) Current NGPON2 Office Park Cell Site Office Park Business Impacts: Lowers cost by sharing OSP (PON) and electronics. More efficient network utilization due to converging disparate business and residential traffic. PON capacity increased by 4-16 times. Maximum throughput 10Gbps. Cell Site Evolution of access network with Next Generation unified PON platform for residential and business services to provide higher bandwidth and more reliable services
15 Multi-Service Edge (MSE) Cons. Voice Edge Fios Aggregation Private IP Edge Public IP Edge Business Impacts: SES L2 Edge CPA L2 Edge Core Data Center Edge Video Edge Lower cost per port vs. legacy routing equipment. Current Peering Edge Ent. Voice Edge Smaller footprint of edge routers due to the integration of multiple services on a single platform. Future Core More efficient network utilization due to converging disparate network traffic onto one device. MSE Replaces multiple edge/aggregation devices with a single platform leveraging a decoupled control plane for scale-out capability
16
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