Training and trials on network planning tools for evolving network architectures. Session 3.2

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ITU-BDT Training and trials on network planning tools for evolving network architectures Moscow Russian Federation, 4-84 8 June 2007 Session 3.2 Network planning at different time scales, long, medium and short term Ignat Stanev ITU Consultant ITU BDT Training Moscow Russian Federation, 4-8 June 2007 Session 3.2-1 Network planning at different time scales: Long term network planning (Target network) Target network planning as bases for preparing of comprehensive master plans - master plans are usually based on long term assessments. ITU BDT Training Moscow Russian Federation, 4-8 June 2007 Session 3.2-2 1

Network planning at different time scales: Medium term network planning: To identify intermediate steps from present to target network Short term network planning : Short-term plans can be made up on regional or local bases ITU BDT Training Moscow Russian Federation, 4-8 June 2007 Session 3.2-3 Planning of telecommunication networks Network planning Critical Demand Forecast CapEx sensitive Plan New Build OpEx Re-Optimization intensive Critical Purchase / Build Operate & Maintain PLAN BUILD RUN CAPEX Sensitive OPEX Intensive Service Service Definition Definition / Market Capture / Market Capture 15% Access Technology Access Technology Selection Selection / / Roll-Out Roll-Out Business Case Business Case Analysis Analysis Service Mix, 85% Geographical Traffic Demand Voice Voice SS7 SS7 SONET SONET / / SDH SDH Synchronization Synchronization Traffic Demand Traffic Demand Generation Generation / / Distribution Distribution ATM ATM Bandwidth Requirements 9% 5% Optical 9% Optical Ring Ring Optical Optical Mesh Mesh 52% ITU BDT Training Moscow Russian Federation, 4-8 June 2007 Session 3.2-4 25% WDM Links WDM Links Link Requirements IP / MPLS IP / MPLS nodes 2

Access network : broadband access alternatives xdsl SAT Wireless HFC Power line FTTx ITU BDT Training Moscow Russian Federation, 4-8 June 2007 Session 3.2-5 Planning process for planning of wireless BB access network ITU BDT Training Moscow Russian Federation, 4-8 June 2007 Session 3.2-6 3

Planning of telecommunication networks C o sts O p tim u m T o ta l NODES E x ch a n g es CORE C ircu its 15% 9% SACCESS u b scrib ers 9% 5% n o. o f ex ch a n g es 52% Optimization of the telecom network 85% 25% Optimization of the telecom network nodes ITU BDT Training Moscow Russian Federation, 4-8 June 2007 Session 3.2-7 Demand forecasting as bases for network planning Demand long-term forecast medium-term forecast bridging Time ITU BDT Training Moscow Russian Federation, 4-8 June 2007 Session 3.2-8 4

Population and usage development trends Findings of the United Nations : all growth in population will concentrate in urban areas, no growth in rural areas most of the growth will concentrate in urban areas of less developed regions Percentage of the population living in rural areas 27% Latin America 71% Sub- Saharan Africa 71% East Asia & Pacific 75% South Asia Source: The World Bank(1992) Users will concentrate in urban areas; as urban areas put higher pressure on the individual to "do what the others do" and from technical point it is easier to connect people in urban areas ITU BDT Training Moscow Russian Federation, 4-8 June 2007 Session 3.2-9 Millennium Development Goals Telephone lines and cellular subscribers per 100 population Personal computers in use per 100 population Internet users per 100 population 1990 2003 1990 2003 1990 2003 World 10 41 2 10 <1 11 Developed regions Developing regions 38 2 125 25 9 <1 45 3 <1 0 45 5 Source: World Telecommunication Indicators Database ITU BDT Training Moscow Russian Federation, 4-8 June 2007 Session 3.2-10 5

Worldwide fixed and mobile subscribers Worldwide fixed-line and mobile telephone subscribers, millions 2,500 2,000 1,500 Mobile Mobile passed fixed in 2002 globally; since then the gap has grown Today almost every country has more mobile than fixed line subscribers 1,000 Fixed 500 0 2000 2001 2002 2003 2004 2005 Source: TMG, Inc. (2004 estimate and 2005 forecast). ITU BDT Training Moscow Russian Federation, 4-8 June 2007 Session 3.2-11 Network planning at different time scales as seen in the evolution steps to NGN In respect to strategies for introduction of the new equipment In respect to strategies for coexisting of the present and future technology ITU BDT Training Moscow Russian Federation, 4-8 June 2007 Session 3.2-12 6

Strategies for introduction of the new equipment Consolidation: Optimize the installed PSTN to reduce capital (CAPEX) and operational expenses (OPEX). Consolidation can be combined with a selection of future-safe products to prepare migration to NGN Expansion: Keep the existing PSTN infrastructure and services, but introduce an overlay NGN (based on broadband access) for addressing new customers and introducing new services (e.g., multimedia). Replacement: Replace PSTN components (at their end-of-life) with equivalent NGN components. ITU BDT Training Moscow Russian Federation, 4-8 June 2007 Session 3.2-13 Evolution steps to NGN Application Servers SS7 Voice Data Signaling Parlay, JAIN, SIP ApGW STP ISU INA Transit Local POTS, ISDN SCP ISU TDM Access Node Transit Local PINT, SPIRITS ISDN/PRA NAS Dial-up DSL Modem Modem Packet Network BAS Internet DSLAM WWW Servers ITU-D/SG2 D/SG2-Q19/2 Early Introduction of Broadband Access ITU BDT Training Moscow Russian Federation, 4-8 June 2007 Session 3.2-14 7

Next Generation Network NGN SS7 Voice Data Voice/Packet Signaling STP SCP ISUP Application Servers INAP Transit TDM Local Portal ISUP AN ISUP H.248 SIP Parlay JAIN SIP, H.323 HTTP SIP Multimedia Softswitch Packet Network DSLAM BAS Internet WWW Servers ITU-D/SG2 D/SG2-Q19/2 Multimedia Services and New User/Network Interaction ITU BDT Training Moscow Russian Federation, 4-8 June 2007 Session 3.2-15 Strategies for coexisting of the present and future technology Overlay strategy Old technology New technology Old technology New technology Island strategy Old technology New technology Pragmatic strategy ITU BDT Training Moscow Russian Federation, 4-8 June 2007 Session 3.2-16 8

Strategies for coexisting of the present and future technology Overlay strategy Deployment of overlay NGN access network Residential gateways RGW and access gateways AGW are being deployed in the areas served by existing TDM equipment for new and business subscribers to meet their demands on new stateof-the-art services Overlay NGN access network with Class 5 softswitches is created. Gradually, this network is expanded till the total replacement of the existing TDM equipment Old technology New technology ITU BDT Training Moscow Russian Federation, 4-8 June 2007 Session 3.2-17 Strategies for coexisting of the present and future technology Island strategy Deployment of NGN islands in the access network PSTN exchanges are replaced with AGW and residential gateways RGW situated at the customer site NGN class 5 islands are formed in the TDM network, connected via MAN Trunk gateways TGW are used for interconnection with PSTN Old technology New technology ITU BDT Training Moscow Russian Federation, 4-8 June 2007 Session 3.2-18 9

Fixed network users potential Highly developed countries (close to saturation): Country Population (in thousands) Teledensity [%] Average household size Teledensity per household [%] Percent of residential lines Australia 19,157 53,86 2,64 101,2 75,0 Canada 30,750 63,45 2,65 98,2 63,9 France 58,892 56,89 2,46 94,0 69,2 Germany 82,260 65,08 2,16 95,5 77,0 Italy 57,298 48,07 2,71 96,9 79,2 Japan 126,919 55,83 2,70 116,8 75,8 New Zealand 3,831 44,81 2,91 103,0 78,5 Republic of 47,300 48,86 3,04 105,5 74,1 Korea Spain 40,600 50,62 3,25 100,8 83,5 Sweden 8,881 68,20 2,22 98,7 67,9 Switzerland 7,204 74,42 2,39 99,6 60,0 United Kingdom United States of America teledensity per house-hold about 100% 59,766 59,086 2,38 93,0 71,0 275,130 64,58 2,58 94,1 67,6 ratio residential to business from 2 / 1 to 3 / 1 ITU BDT Training Moscow Russian Federation, 4-8 June 2007 Session 3.2-19 Mobile subscribers Mobile subscribers per 100 inhabitants, 2003 125 100 75 100 95 90 85 80 Original Adjusted Taiwan Hong Kong Israel Finland Sweden Norway Mobile penetration Mobile use Important to be precise about subscribers in countries already exceeding 100 % Taiwan: 20-30% have 2 nd SIM card Hong Kong: 24% of prepaid non-active Israel: ~ 20% double counted (due to churn and liberal counting policies) or non-resident subscribers teledensity above 90% related to population brake down ITU BDT Training Moscow Russian Federation, 4-8 June 2007 Session 3.2-20 10

Cellular mobile network users potential Important to be precise about subscribers in countries already exceeding 100 % Age ranges for mobile use: Finland: 15-74 Sweden: 16-75 Norway: 9-79 Source: TMG, Inc. adapted from national regulatory & national statistical agencies. Cellular mobile network users potential is related to population brake down by age 6 and above 80 excluding only unable/unwilling to use telecommunications, e.g. age below 6 and above 80 ITU BDT Training Moscow Russian Federation, 4-8 June 2007 Session 3.2-21 Impact of Cellular mobile on Fixed network Network growth (compound annual growth rate in %) New telephone lines added 1997-2002 New mobile subscribers added 1997-2002 Low Income 12,5 76,5 Lower Middle Income 14,4 67,6 Upper Middle Income 4,4 57,4 High Income 1,2 29,9 Africa 6,0 74,9 Americas 2,3 28,7 Asia 11,8 43,3 Europe 2,6 46,3 Oceania 0,4 24,3 WORLD 5,3 40,2 World telecommunication/ ICT indicators ITU Database Case of Italy ( 1997-2002 ): 1,4 % CAGR for fixed network, 35,2 % CAGR for mobile network Year 1997: fixed network teledensity 44,79 %, residential lines 76,5 % cellular mobile teledensity 20.46 % Year 2003: fixed network teledensity 48,40 %, residential lines 79,2 % (2001) cellular mobile teledensity 101.76 % ITU BDT Training Moscow Russian Federation, 4-8 June 2007 Session 3.2-22 11

Broadband connection statistics Top 10 countries by mobile multimedia users as % of population, 2003 Spain Norway Finland UK German Sweden Singapo France S.Kore Japan 0 10 20 30 http://reports.tmgtelecom.com/ssmi ITU BDT Training Moscow Russian Federation, 4-8 June 2007 Session 3.2-23 Broadband connection evolution Broadband penetration forecasts for the residential market - EU ITU BDT Training Moscow Russian Federation, 4-8 June 2007 Session 3.2-24 12