Smart IPX. Why Interconnect as a Service (IXaaS) is the next big thing. Tel: Executive Summary

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1 Why Interconnect as a Service (IXaaS) is the next big thing. Smart IPX Tel: Executive Summary Telecommunications Interconnection has traditionally been an unregulated monopolistic activity, either controlled by the state or by large Service Providers (SP) with a vested interests in the status quo. SPs maintained interconnect skills exclusively in-house and insisted on complex testing schedules, keeping the set-up and management of interconnects something over which they had sole control, thereby keeping the cost high and the time commitment expensive. Over the last few years, it has become less common to have an interconnect management capability in-house. Due to the rapid evolution of cloud technologies and the progressive break-down of interconnect disciplines into their constituent parts, it is now more efficient to be able to call in resources to manage the interconnect set-up and management processes. There is generally no longer the need to own the costs and manage the issues around ownership of your own interconnect service. Today, low level physical installations are rare. Most modern interconnects are done at a network level, requiring only rapid hardware and software modification to grow capacity, rather than the complexity and cost of physical wire/cable point to point connections. Once hardware and network connectivity is established the only remaining tasks are to undertake software engineering in the form of service connectivity, authentication and routing, which can mostly be completed remotely via some form of web interface and in many instances fully automated. We are in transition to a full Interconnect as a Service (IXaaS) environment, where rapid deployment, reliability and upgrade will become a de facto standard. This opens up a wealth of service possibilities not feasible under more traditional stove pipe interconnect scenarios. SmartIPX has the experience and deep understanding of how IXaaS is evolving into a simple service, not requiring any fuss or complex management once it has been established. In this document, we look at the history of interconnects to understand the current position, and then draw some conclusions about the future for this de facto utility. The History of Interconnect In the UK, all forms of Interconnect were controlled by the old General Post Office (GPO), then British Telecom. During the course of the 1980 s other licensed operators (OLO) were allowed to create infrastructure and create diverse interconnect networks, both fixed lines, such as Mercury Communications, and cellular services, such as Cellnet and Vodafone. By the end of the 80s over 90% of traffic over the telecoms network was voice, accessed using copper pair technology, with a limited amount of data transfer over bespoke separate data only pipes, often using Integrated Services Digital Network (ISDN) for large companies such as IBM and for Government bodies. Legacy interconnect was largely a physical exercise requiring much manual intervention and provision of wire/cable and termination points. Data transport was usually carried out using Plesiochronous Switching Centers class 4 / 5 AXE 10 DMS 100 ESWD Alcatel System X Nokia DX Lucent 5ES DSC Diax Analogue ISDN +PRI PBX s Lines Trunks Special services, DQ, 911 etc Voice trunks Trunk signalling SS7 A typical silo based voice access network based on old TDM techology Digital Hierarchy (PDH) or Synchronous Digital Hierarchy (SDH) transport layers where a hierarchical multiplexing equipment allowed scale. The diagram below show a typical service provider topology in the last phase of analogue interconnect. Most of this technology is largely now redundant or already in the process of being superseded by newer digital technologies; one of the few remaining exceptions is the System X telephone exchange network which is not due for replacement until after SDH transport network Transit network Tandem /Transit switching centres TSC Class 4 nodes International switching centre ISC

2 Interconnect today With the advent of mass market broadband technologies in the mid to late 1990s using Asymmetric Digital Subscriber Line (ADSL) and Symmetric Digital Subscriber Line (SDSL), new forms of local access to residential, business and enterprise markets were introduced. These technologies allowed much faster data services at more reasonable costs to the end user, in turn making it easier for integrated voice and data access using Session Initiation Protocol (SIP). This, when combined with regulatory changes allowing SP s to take wholesale ownership of the local loop copper pairs caused intense competition in the Telecommunications market. Interconnects are now largely a soft exercise, where the provision is carried out via an e-transaction using automated provisioning, usually via an API, and centralised database. As SPs have adapted to use supply change economics to offer services, the first generation of e-interconnect between SPs and their ASP partners are already underway, using API-drive web portals over IP networks. The Interconnect discipline is now deskilled from a network operations perspective, not requiring permanent in-house skills, rather a need to have more I.T orientated skills to address web GUI, API and database requirements. Much interconnect activity is already automated or on the way to being automated, especially for mobile SIM based activity over end devices like tablets, smart phones and TVs. Most PSTN voice assignments and data connections with non-static IP addresses, regardless of type, are now carried out through web portals where automation takes care of the majority of the activity. Once an Interconnect is established there are often secondary issues to address, which is where the real service differentiator may now be found, namely: 1. Routing 2. Security / Firewall 3. End user billing 4. Service provision At the same time advancements in mobile data services allowed much faster data transmission using GPRS, 2.5g, 3G and now 4G. There are now a large number of UK Transport Providers who have specialized in the Provision of cable and fibre in the ground that are connected to 100 s of nationwide and international Data Centres (DC). There are also now a multitude of metropolitan cable network providers that wire out large cities and interconnect into the DCs. Global players like Level 3, GTT, Interoute, Epsilon, MCI and more have effectively created a global core of DCs that everybody is connected to via fast Ethernet. 5. Service billing 6. Traffic monitoring SmartIPX has a raft of support capabilities to address these requirements. Thanks to these changes, there are today many varied SPs offering no end of distinctive services once an interconnect is established: a process much simpler than 5-10 years ago. Old to New

3 The Future Web portals are already by far the most common method to provide Interconnect services for SPs providing voice and data services to residential and business users. Such portals will, for the foreseeable future, be the status quo when providing Interconnections and order management, especially for residential and business based voice applications where PSTN numbering is a requirement. Edge Device Interconnect will become normal where end point connections route via thin client software with access via Wifi, FE, broadband, 4G and office based router connections for the rest. Fully automated is the ongoing trend for interconnection set-up & management, but for the time being there will still be a requirement in some instances to have manual intervention and specialist security for authentication requirements, and for firewalls and security protocols. The introduction of management or ubiquitous protocols will simplify the ability to automate activities to support end to end services. It is possible to provide an end user interface or API call but the automation challenge is how to distribute interrelated dependent actions across legacy or multiple network elements. As new network core protocols like Diameter and edge protocols like WebRTC take hold, the process will become 100% automated - WebRTC allows you to avoid legacy networks (!) and Diameter allows you to speak to all of them. 3GPP / TISPAN IMS Architectural Overview HSS in IMS layer (as by standard) Source:

4 Conclusions What resources do you need to operate Interconnect as a SP? How does technology impact on Interconnect? Yesterday Very inefficient, slow and non-standardised with proprietary technology sets and expensive hardware, not easily scalable (certainly without massive investment). Own the resource; Own the cost; Own the infrastructure; Own the technology; Silo based activity; Expensive to maintain, unreliable low MTBF periods; Required skilled support in house. Today In transition Moving away from ownership of resources and infrastructure towards cloud based enabled technologies; Open Source low cost API; Semi-automated; Outsource ASP partners - supply chain mentality; Operational expenditure (OPEX) rather than Capital Expenditure (CAPEX); Core soft engineering skills: Routers, Firewalls, Authentication, Database Management; Reducing costs as cloud architectures grow; Starting to become scalable, but not quite there. Cheaper to maintain with reliable equipment; Web base portal activities. Tomorrow Just turn on the tap or turn up the wick when required. Plug & Play; Cloud Based ASPs; Service Level Agreements and KPI with ASPs; Virtually no operational staff; Pay as you go model; Open access: Wi-Fi, LAN FE, BB, 4G, LTE; Highly scalable; Rapid upgrade to next generation technology due to outsourced operations model. Measured and scaleable IXaaS with SmartIPX

5 SmartIPX activity in the IXaaS environment Smart IPX has 24 x 7 technical resources to maintain and support legacy, current and next generation networks. Specifically, SmartIPX is very focused on understanding and using operational support systems in support of their clients, with a highly adaptive approach to complex scenarios. Our highly skilled and accredited teams are experienced in establishing and trouble-shooting interconnect activity. As the trusted operations partner for a wide range of communication service providers (CSP) world-wide, we blend people, expertise and systems to enhance our client s network operational capabilities. We are experts in remotely helping to operate and maintain our customers infrastructure and network, fine-tuned around their exact requirements. If you are a communication service provider anywhere in the world, then SmartIPX are your ideal outsourced operations partner, based in the heart of the UK Internet hub of London Docklands, with a global reach. We are an MVNE, specialising in working with MNO, MVNA and MVNO. SmartIPX work to provide Interconnect as a Service. Suggest and design interconnect architectures and future proof technologies; Be flexible in the interconnect requirement; Use any test equipment required to establish the interconnect; Confirm any service billing requirements on behalf of the SP; Proactively monitor and assure services once the interconnect is established; Fix any faults within a prescribed time SLA/KPI; Introduce new technology as new interconnect technology is introduced; Reduce your costs! With constant changes to specifications, protocols and network requirements, SmartIPX is already working on behalf of multiple international customers to leverage global interconnect aggregation opportunities, accommodating the new SLA/KPI, BSS and OSS demands this all represents. Contact us for a conversation. Further Reading Enabling Quality of Service on IPX-Enabled Networks - Read more. SmartIPX meet the challenges offered in migrating Stour Marine to an IP Network - Read more. For more information - Paul Tindley paul.tindley@smartipx.com, Visit us at: or you re welcome to visit us at the Docklands Business Centre, Tiller Road, London E14 8PX