IP INTERCONNECTIONS MONDAY SEPTEMBER 13, 2010
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1 IP INTERCONNECTIONS MONDAY SEPTEMBER 13, :30PM-3:15pM 3:15pM
2 PLEASE SILENCE YOUR CELL PHONES THANK YOU!
3 MODERATOR/SESSION LEADER DAVE MALFARA - PRESIDENT & CEO, ETC GROUP LLC SPEAKERS KURT RAAFLAUB ADTRAN - PRODUCT MANAGER FOR OPTICAL AND ETHERNET SOLUTIONS IAN CAMPBELL ARBINET - DIRECTOR OF PRODUCT MANAGEMENT & PRODUCT DEVELOPMENT MICAELA GIUHAT GENBAND - VICE PRESIDENT, PRODUCT MARKETING RON CONTRADO HOMISCO, INC. -CHAIRMAN & FOUNDER
4 Adtran, Inc All rights reserved 4
5 Business Service Migration Effectively migrating legacy services to Ethernet Kurt Raaflaub Product Management Carrier Ethernet and Optical ADTRAN
6 The rung of a ladder was never meant to rest upon, but only to hold a man's foot long enough to enable him to put the other somewhat higher. - Thomas Huxley ADTRAN 2010 All rights reserved 6
7 Sustained Demand for Legacy Services Co-existence of Legacy and Next-Gen ADTRAN 2010 All rights reserved 7
8 A Host of Legacy CPE and Aggregation Supporting Multiple Processes and Platforms ADTRAN 2010 All rights reserved 8
9 A Host of Legacy CPE and Aggregation Multiple Processes and Platforms TDM/SONET Provider Edge ATM MSAP SONET MSPP NID IAD MUX C/DSU DIA EVPL ELAN IP/VPN Packet Data Metro LAN CSD Voice LTE HSPA EV-DO UMTS CDMA cdmaone GPRS TDMA AMPS Core Access Services ADTRAN 2010 All rights reserved 9
10 Proliferation of Interworking Functions Preserving Large Investment in Legacy CPE TDM/SONET EFM PPP ATM IWF FR IWF DCS NID IAD MUX C/DSU DIA EVPL ELAN IP/VPN Packet Data Metro LAN CSD Voice LTE HSPA EV-DO UMTS CDMA cdmaone GPRS TDMA AMPS Core Access Services ADTRAN 2010 All rights reserved 10
11 IWF Consolidation/Simplification Introducing Ethernet MSAP or IANs CHANGE SIZE TDM/SONET TDM aggregation hub to migrate legacy services to the IP infrastructure Ethernet Aggregation to launch new Broadband services DIA EVPL ELAN IP/VPN Packet Data Metro LAN CSD Voice LTE HSPA EV-DO UMTS CDMA cdmaone GPRS TDMA AMPS Core Access Services ADTRAN 2010 All rights reserved 11
12 ADTRAN Total Access 5000 FT1 through to 10G service delivery IP-based Effective Transition of Services Capital Consolidation & Operational Simplification TDM-based Core Access Services ADTRAN 2010 All rights reserved 12
13 Business Services Migration Effectively migrating Legacy to IP/Ethernet Demand for Legacy Business Services continues IP Circuits (PPP/MLPPP) Continue to increase Frame Relay continues downward trend Large investment in ATM still exist Ethernet services are the New Growth Engine 1Mbps 10Gbps services Operating Multiple l Networks Costly but necessary Interworking Functions (IWF) offer relieve EFM and PPP Bonding Platforms Ethernet-based MSAPs/IANs provide Operational Relieve a better way Effectively support BOTH Legacy and Next-Gen Consolidation/Simplification of IWF/Bonding infrastructure Adtran, Inc All rights reserved 13
14 A Single Centralized Access Solution Single Platform, Common OAM&P, Full Coverage ADTRAN Total Access 5000 reduces embedded costs for legacy services ADTRAN 2010 All rights reserved 14
15 Migrating Voice to IP Interconnections Problems & Opportunities Presented by Ian Campbell Director Product Development & Product Management
16 Agenda Introduction Why VoIP Interconnects? i3 Forum & GSM IPX Architectures Opportunities/Challenges Future interconnection architecture
17 Introduction Current Landscape TDM carries majority of international voice traffic: Milk investments in TDM switches Retail traffic is quality sensitive Service features deployed require use of SS7 to work correctly e.g. voic OCN/RDN; release/cause code mapping is not consistent But: VoIP used extensively in domestic and international wholesale: Access to emerging markets using public Internet as transport Interconnection to resellers and wholesalers ITSPs using VoIP to avoid conversion costs for interconnection
18 Cost Savings Transport cost reduction Carrier Ethernet/MPLS Better capital utilization Stop dual running of VoIP & TDM Opex cost reduction Business/Product New services on converged infrastructure Enhanced service features e.g. HD voice Competitive pressures Engineering/Operations Introduction VoIP Drivers Equipment obsolete replacement difficult Stop dual running VoIP & TDM reduce interworking complexities
19 i3 Forum & GSM IPX Architecture i3 Forum 35 Carriers committed to solving the remaining issues in VoIP interconnection ( Has provided recommendations and documentation for: Improving quality: Improved metrics MOS, NER, IP metrics IP QoS SLA end to end through multiple carriers Avoiding or eliminating transcoding
20 i3 Forum & GSM IPX Architecture Feature interworking: Release code mapping SIP I SIGTRAN Fax over IP Security IPX Architecture ( General structure for IP interconnection for not just mobile operators but all SPs. i3 and GSMA collaborating on voice over IPX (VoIPX), unified approach toensure qualityandfeatureinterworking and interworking Further interworking provided for Data Roaming, SMS/MMS and new services
21 Opportunities/Challenges Opportunities: HD Voice quality well in excess of TDM using broadband codecs HD H Video Conferencing New services presence Cost savings and quality improvements on current voice Challenges: Routing & Addressing to support Peering Direct routing requires incremental knowledge: Number Portability in distant operator/country Service capabilities of end users HD voice capable? Integration of Peering and LCR approaches Economics of many direct peers versus using trusted partner Security and Fraud Prevention Transport Network Issues & IPv6
22 Need to balance: Direct peering routes Peering via Intermediaries Termination offered by partners Termination via PSTN carriers Select routing based on Price, Quality and Policy choices
23 Thank You!
24 IP Interconnections Comptel September 2010 Micaela Giuhat VP Product Marketing GENBAND
25 Discussion Topics The Interconnect Evolution Market Drivers Opportunities, Challenges & Requirements for the Operator Interconnect Solutions Summary 25
26 What is IP MM Interconnect Solution? Inter IXC Modernization/ Consolidation i Business Trunking Long Distance/ International IP MM Interconnect IP Exchange (IPX) National & International Intra Carrier National /International & Wireline & Wireless (IMS & non IMS) Inter Carrier Nti National /International Wireless & Wireline (IMS non IMS) 26
27 Evolving the Carrier Voice Interconnect Historic Trends Trends driving Interconnect Evolution Traditional telecoms operators historically i use TDM for POI (point of Operators driving for CapEx/OpEx interconnect) savings Ongoing investments in TDM to New VoIP Wholesale competitors support internal and external needs Faster adoption of VoIP in lower tier TDM interconnect -- a strong operators economic model, sustained by high interconnect charges (specifically Regional regulatory approval for VoIP NLD/ILD) Global standardization -- IMS and GSMA IPX/IPI Operator investment in IP Access and Core -- 27
28 Market Drivers Rapid increase in International VoIP Minutes traffic Over 25% of all International traffic is VoIP Currently at 100 billion minutes annually Poised to accelerate growth due to VoIP s lower costs Fixed Access Network Migration to VoIP Fixed line TDM access is giving way at a solid pace to VoIP access Creates substantial source of VoIP minutes traffic in NLD/ILD backbones Growing volume increases operator pressures for a cost-effective ti interconnect t solution Mobile Migration to VoIP Operators migrating from TDM switches to VoIP & IMS Creates substantial source of VoIP minutes traffic in NLD/ILD backbones Growing volume increases operator pressures for a cost-effective interconnect solution Fixed Line Installed Base by TDM vs. VoIP - Synergy Research (Thousands) CAGR Total TDM IB 1,321,844 1,278,467 1,252,549 1,221,533 1,188,343 1,150,339 1,106,185-3% VoIP IB 60, , , , , , , % Total IB 1,382,620 1,415,659 1,434,666 1,441,149 1,450,559 1,461,954 1,475,800 1% TDM IB % 96% 90% 87% 85% 82% 79% 75% -4% VoIP IB % 4% 10% 13% 15% 18% 21% 25% 35% Mobile Subscribers by Region - TIA (Thousands) CAGR USA 219, , , , , , ,000 6% Canada 18,749 20,277 21,900 23,600 25,400 27,300 29,300 8% Europe 800, , , , , , ,920 5% MEA 259, , , , , , ,730 21% CALA 302, , , , , , ,000 13% APAC 1,091,251 1,380,950 1,690,400 1,964,575 2,214,800 2,457,075 2,691,500 18% Total 2,691,891 3,244,687 3,737,610 4,150,085 4,522,175 4,877,240 5,210,450 13% 28 28
29 Standards in the Space IPX and I3F: GSM Association (GSMA) Guidelines defined by GSMA to primarily connect mobile carriers and other mobiles Mainly represented by European mobile network operators initially. Now includes fixed operators together with operators from Asia and USA. I3F created independently, with emphasis on wholesale carriers IPIA and I3F joint forces to drive IPX specifications and establish VoIPX WG. Does not cover TDM IP interconnect SPEERMINT IETF New working group created for defining Session PEERing for Multimedia INTerconnect (SPEERMINT) reference architecture at technical level only and for layer 5 SIP peering only. Defines SBC behaviour for enterprise-enterprise peering & Carrier-Enterprise & Carrier-Carrier peering. Driven mainly by US operators (Verizon, Global Crossing, etc, Cable Labs and BC vendors (ACME, Juniper) Enterprise-enterprise, SIP Service Provider (SSP)-SSP, Enterprise SSP, across public or private internet. IMS; ITU-T NGN: ETSI TISPAN None go into details to enable open interoperability. IMS vaguely defined interconnect between IMS networks from the CSCF via a BCF & TrGW. ITU-NGN simply indicated the use of BCF but also state that PSTN Emulation Subsystem should use SIP-I TISPAN NGN indicate use I-BCF and BGF. 29
30 Global Operator Interconnect SWOT Analysis STRENGTHS Capitalize on current business and brand equity Incumbent s % ownership of Interconnect Traffic Global reach & business relationships OPPORTUNITIES Exploit network footprint (nationally & internationally) Capture new markets through initiatives such as GSMA IPX Create powerful interconnect capabilities with other providers and partners Reduction in OpEx (through technology consolidation) + _ WEAKNESSES Complexity of network transformation programs Perceived cannibalization of existing TDM interconnect revenue streams Slower velocity on adoption of VoIP at the interconnect THREATS Over the Top Voice Suppliers and nimble smaller operators Other Global Operators grabbing market share early Gradual erosion of TDM Voice Interconnection revenues Operators know they must act to secure future revenue streams 30
31 The Operator Challenge How to act? How does the business economic model need to change? What new market opportunities can be exploited? What technology choices should be made? Mitigate impact of TDM interconnect cannibalization Loss of traffic (mobile substitution, Over the top Voice providers, other new market entrants etc) Does price erosion and highly competitive market economically sustain existing TDM interconnect model? Does VoIP provide the means to reduce comparative OpEx & CapEx costs (incl. retirement of legacy Gateway switches)? When is the right time to react (inflection point)? What is the strategy for staking a major role in the evolving VoIP interconnect market? How can the needs of interconnectivity between Fixed and Mobile Operators be met today (without the requirement for significant capital investment)? How can existing investments (such as wide area IP/IMPLS networks) be exploited? Should I wait for interconnect standards efforts to gain momentum (example GSMA IPX/IPI)? Where can VoIP be exploited? (how to align with strategy of interconnection partners)? How do align the solution to my own network transformation programs (do I collect traffic via TDM or VoIP from my own network)? How can a I build a common solution to handle multiple scenarios (IP TDM, TDM IP, IP IP etc)? How can I align with standards and ensure investment protection against technology choices made? 31
32 The Interconnect Solution Legacy Mobile BICC Signaling SIP/SIP I, H.323, H.248 Legacy C7/SS7 Signaling Control (Legacy & NGN) Extensive CODEC support: Fixed, Mobile & Satellite Full Multimedia Transcoding & Transrating facilities Media (IP IP, IP TDM, TDM IP) Mobile Operators (3GPP, 3GPP2) National & International Operators Fixed Operators (TISPAN, IMS) Any to Any Operator Connectivity ii Unified Security Unified Manageability Common Command & Control 32
33 Interconnect: TDM to IP SIP Redirect Signaling & Control Media Plane SIGTRAN RTP 33
34 Interconnect: IP to IP Signaling & Control Media Plane RTP 34
35 Interconnect: IP to IP Transcoding SIP Redirect Signaling & Control H248 Media Plane ENUM / SIP Redirect X CODE RTP G AMR
36 Summary The new Interconnect Solutions have to: Simplify the transition to VoIP with any-to-any voice and multimedia interconnections IP to IP, IP to TDM, TDM to TDM; fixed, mobile, and satellite Create competitive advantage by reducing the number of network components and transaction costs, and enhancing QoS and voice handling Provide fast ROI, reduces time-to-market for new services Create new opportunities for growth and expansion, such as interconnection with GSMA s IPX and other peering services Allow effective cap-and-grow migration for TDM assets Reduce capital and operating cost structure for greater margin flexibility Simplify operations and improves service visibility via a single vendor solution under a single management umbrella Scale with support for integrated or decoupled options Support open standards and IMS compliant, future-proofs network investments 36
37 CONTACT TODAY S SPEAKERS Dave Malfara dmalfara@etcgroup.net Ian Campbell icampbell@arbinet.com Ron Contrado rcontrado@homisco.comcom Micaela Giuhat micaela.giuhat@genband.com Kurt Raaflaub kurt.raaflaub@adtran.com
38 Thank You For Attending!
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