An introduction to NTT’s NGN
and new services in Japan
March 17, 2007
Tadanobu OKADA
Associate Senior Vice President,
Executive Director of Information Sharing Laboratory Group,
NTT
© 2007
1
Outline
1. The current status and future direction of
Japan’s telecommunications market
2. NTT’s plans for the deployment of its NGN
3. Conclusion
© 2007
2
Measures taken to prolong the lifetime of NTT’s PSTN facilities
• NTT’s PSTN consists of several thousand switches.
• Although a then-state-of-art switching system (NS8000) was developed around 10 years ago,
the rapid progress in technology since then has resulted in the discontinuation of production
of some components used in the system. Currently, we are trying to prolong the lifetime of
the switches by re-establishing sources for such components.
POI
Transit
switch
Transit
switch
Other carriers
POI
NW between prefectures
Several
hundreds
Transit
switch
NTT West
NW inside a prefecture
Several
thousands
Local
switch
Local
switch
NTT East
Transit
switch
0.35µm
0.5µm
3.3V PS
5V PS
0.6µm
0.8µm
1.0µm
1.2µm
90
nt
in
ue
d
Several
tens
Other carriers
Di
sc
o
NTT Communications
Integration degree
Migration to more highly integrated LSI that
operates with lower voltage power supply
1.8, 2.5V PS
0.25µm
95
00
Year
05
NW inside a prefecture
Local
switch
Local
switch
NS8000
(developed around 10 years ago)
© 2007
3
Maturing of IP telephony technology in Japan
y IP telephony is spreading from business users (IP-PBX). Low rates (or free between specific
points) offered by ISPs have increased the number of IP phone users in Japan to more than
13 million.
y NTT already provides an IP phone service “Hikari Phone” using the ordinary telephone
numbering plan.
1
OCN
2
Free
Affiliated ISP’s IP
network
Free
(178ISPs)
*2
*1
3
¢7 / 3min
*2
4
Affiliated ISP’s
IP phone
Non-affiliated ISP’s
IP phone
(12ISPs)
PSTN phone
¢7 / 3 min
*2
5
¢9 / 3 min
PSTN phone
6
¢14 / min
Mobile phone
■ Increase of subscribers to IP
phone service
14
Number of subscribers (millions)
OCN.Phone
12
10
8
ble
a
k
ar th
m
w
Re gro
6
4
2
0
2004
2005
2006
Int’l phone network
7
Discount rate
Int’l phone
*1: NTT Communications, Inc.: http://www.ocn.ne.jp/english/personal/option/voip/
*2: not changed by distance
© 2007
4
Change in net increase of subscribers to broadband service
1.6
1.4
7
1.2
6
1.0
5
ADSL
0.8
4
0.6
3
0.4
2
FTTH
0.2
1
0
-0.2
0
Q2
Q3
2002
Q4
Q1
Q2
Q3
2003
Q4
Q1
Q2
Q3
2004
Source: Website of the Ministry of Internal Affairs and Communications
Q4
Q1
Q2
Q3
Q4
Q1
2005
Q2
Number of subscribers (millions)
Net increase in numbers (millions)
• In the first quarter of 2005, the net increase in FTTH users exceeded that of ADSL
users. In the second quarter of 2006, the number of ADSL users began to decrease.
• In contrast, as anticipated by the u-Japan Plan, optical access is increasing rapidly.
Q3
2006
© 2007
5
Decrease in revenues from both fixed-line and mobile phone services of NTT
• The revenue from the fixed-line phone service has decreased considerably.
• The revenue from the mobile phone service has also begun to decrease.
Fix-line-based operators
NTT East/West/Communications
（billion
US$）
Profit
Profit
9.2
8.8
+0.4
Profit
-2.7
6.9
6.5
+0.4
1.8
+530
2.8
+1.0
50.6
2.6
-0.2
49.4
2.0
-0.6
48.0
Revenue
Revenue
47.2
Mobile (NTT DoCoMo)
（billion
US$）
55
Revenue
Revenue
50
45
40
40.1
42.1
40.4
39.7
2004
2005
35
2002
2003
2004
2005
2002
2003
© 2007
6
80
70
o
aid
kk
Ho ori
m
Ao a
it
Ak te
a
Iw gi
ya ta
Mi aga a
m im
Ya ush
k
Fu aki
ar i
Ib hig
c
To ma
n
Gu ama
it
Sa a
ib
Ch o
a
ky
To gaw i
na sh
Ka ana
m
Ya ta
ga
Ni ma
ya
To awa
ik
Ish
fu
Gi ano
g a
Na uok
iz
Sh i
ch
Ai i
ku
Fu
e
Mi
ra
Na o
ot
Ky ka
a
Os a
ig ma
Sh aya
ak
W o
og a
Hy am
a
ay
Ok shim
ro
Hi ri
t to e
To an i
h
im
Sh guc
a
m a
Ya aw
g
Ka e a
im
Eh shim
ku
To hi
c a
Ko ok
ku
Fu a
g
i
Sa sak
ga
Na
ta i
Oi zak
to
ya
Mi amo a
m im
Ku sh
go a
Ka aw
in
Ok
0
NTT average
60
50
40
30
NTT’s share (%)
Competition for share of FTTH is particularly fierce in urban areas
•NTT has over 50% share in optical access nationwide. However, in urban areas,
where fibers can be installed efficiently, NTT faces tough competition and is falling
behind in many prefectures.
Share of FTTH market in individual prefectures
(As of March 2005)
100
90
20
10
7
© 2007
What is expected in 2010 . . .
Numerous and diverse devices and appliances will be connected to the network,
which should inevitably increase the variety of services, the means whereby services
are provided, and number of service providers.
Domestic
e-business & life market
54T yen (2005)Æ86T yen (2009)
Platform market
2.4T yen (2005)Æ4T yen (2009)
Security market
1.2T yen (2005)Æ1.6T yen (2009)
A variety of application services
Application
Application
Application
Application
Application
Future network
The future network needs a
capacity of...
Peta bits (1015) in 2015
Exa bits (1018) in 2024
Source: “R&D strategy for the 21st century network
core technology”, Ministry of Internal Affairs and
Communication
http://www.nri.co.jp/news/2005/050114.html
1.3B (2005)
Æ1.8B subs (2010)
Source: ITU statistics
http://www.itu.int/ITUD/ict/statistics
Internet
Fixed-line
Mobile access
2.0B (2005)
Æ7.0B subs
(2010)
1.0B (2005)
Æ2.5B subs
(2010)
Source: ITU statistics
Source: ITU statistics
http://www.itu.int/ITUD/ict/statistics
http://www.itu.int/ITUD/ict/statistics
IP-TV
5M (2005)
Æ53M households
(2010)
Source: RNCOS
http://www.rncos.com/Report/I
M063.htm
New network appliances
Domestic applications
9. 5M (2005)
Æ15M units (2010)
http://www.nri.co.jp/news/2005/050114.ht
ml
© 2007
8
Future direction of NTT as a telecom carrier
It is urgent for NTT to increase profit by increasing revenue in addition to reducing
capital and operational expenditure.
z Promote broadband & ubiquitous
services like FMC and triple play
>Revenue shift from telephony
Revenue
from
telephony
Cost
Revenue
from
Broadband
and
ubiquitous
services
z Establish service delivery platform
for new seamless businesses
>Expand telecom market
z Migrate telephone network to IP
>Reduce capital and
operational expenditure
© 2007
9
Key technology for revenue shift
(GE-PON)
© 2007
10
Triple play on a single fiber - already commercially available Broadcasting companies
VOD
Internet
II S
SP
P
Broadcast
Broadcast
Programs
Videos
High-speed
Internet
Telephone
Telephone
network
network
IP phone
IP
IP
network
network
Optical
Optical fiber
fiber :: Simultaneous
Simultaneous transmission
transmission
of
of broadcast
broadcast programs
programs and
and IP
IP data
data
IP
IP phone
phone
:: High-quality
High-quality videophone
videophone
Telephone
TV
PC
TV
TV
:: High-quality
High-quality broadcast
broadcast and
and video
video
distribution
distribution
Internet
Internet
:: Stable
Stable and
and high
high throughput
throughput
environment
environment
© 2007
11
Features of NTT’s GE-PON system
- Fine-tuned bandwidth control for each user
A
A peak
peak speed
speed of
of 100M
100M bps
bps bidirectional
bidirectional transmission
transmission for
for each
each customer
customer is
is
possible
possible under
under low
low traffic
traffic loads,
loads, with
with IEEE
IEEE 802.3ah
802.3ah interface
interface conditions.
conditions.
In
In the
the event
event of
of heavy
heavy traffic,
traffic, the
the operator
operator can
can control
control the
the minimum
minimum bandwidth
bandwidth
allocated
allocated to
to each
each ONU
ONU (this
(this enhances
enhances the
the functionality
functionality of
of IEEE
IEEE 802.3ah).
802.3ah). For
For
example,
example, ifif 32
32 users
users share
share the
the bandwidth
bandwidth equally,
equally, the
the operator
operator can
can
guarantee
guarantee at
at least
least 30M
30M bps
bps for
for each
each customer.
customer.
ONU-1
Downstream
ONU-2
Upstream
ONU
ONU-3
ONU-4
Max: 100M bps/ONU
OLT
Optical splitter
（Max: 32 branches）
© 2007
12
1. The current status and future direction of
Japan’s telecommunications market
2. NTT’s plans for the deployment of its NGN
3. Conclusion
© 2007
13
Approach to NGN
Build
Build NGN
NGN that
that is
is of
of high
high quality,
quality, flexible
flexible and
and secure
secure
Smooth migration from
existing fixed-line to IP
telephony, and from copper to
optical access
Develop and spread
broadband and ubiquitous
services that allow fixedmobile convergence (FMC)
Open network that
allows collaboration
with other carriers and
xSPs
Expand business
opportunities by exploiting
broadband and ubiquitous
services
xSP:
Provide new
business
opportunities
Strengthen competitive edge and financial base,
and contribute to achievement of u-Japan
© 2007
14
Basic concept of NTT’s NGN
Community,
e-commerce
ASPs and various
service players
Broadcast,
content providers
Lifestyle support,
home appliance
Open network interface
IP-based network enabling
provision of seamless fixed
and mobile services
Home
network
IMS
NGN
Network
interface
disclosure, to
enable various
service players
to provide a
wide array of
applications on
the NGN
Safe, secure, and convenient
network equipped with features
of both the existing fixed-line
telephone and IP networks
Office,
hotspot, etc.
IMS: IP Multimedia Subsystem
© 2007
15
Roadmap to building NTT’s NGN
Fiscal year
Steps in
introducing
the NGN
2006
2007
2008–
STEP 1
Provide optical access to 30M
users (End of fiscal 2010)
STEP 2
Field trials
STEP 3
Core network
Construct
transit network
Construct
access networks
-deploy core nodes
-deploy optical wavelength
transmission equipment
deploy edge nodes
Deploy service control functions
Service
control
functions
Service
development
Seamless integration
with mobile network
IMS deployment
(conforming to ITU standards)
Trial services
<For limited
regions and users>
Full-scale development
of next-generation
services
•Broadband Internet access
•IP telephony
•Multicast transmission for video distribution
•Bi-directional video (data) communication
•Ethernet services, etc.
© 2007
16
Overview of Field Trials of NTT’s NGN
• Trial period: One year from Dec. 2006
• Areas: Tokyo and its surroundings and Osaka
Various services through tie-ups with IThome appliance manufacturers and ASPs
SNI (Application Sever-Network Interface)
IP multicast
function
NGN
Security
functions
End-to-end
quality control
Base station
IP telephony
FMC
Video
distribution
Internet
access
© 2007
17
28 participants in the field trial
The following companies are participating in the NGN field trial.
Cisco Systems Inc.
Sony Corp.
NEC Corp.
Matsushita Electric Industrial Co., Ltd.
Oki Electric Industry Co., Ltd.
Fujitsu Ltd.
Hitachi Ltd.
Iwatsu Electric Co., Ltd.
Sumitomo Electric Networks, Inc.
Mitsubishi Electric Corp.
Asahi Broadcasting Corp.
Square Enix, Inc.
TOHO Cinemas Ltd.
USEN Corp.
NTT Communications Corp.
Internet Initiative Japan Inc.
NTT DoCoMo, Inc.
eAccess Ltd.
K-Opticom Corp.
KDDI Corp.
ASAHI Net, Inc.
NIFTY
NEC BIGLOBE Ltd.
Plala Networks Inc.
So-net Entertainment Corp.
an EditNet Co.
Global Solution K.K.
FreeBit Co., Ltd.
As of February 2007
© 2007
18
1. The current status and future direction of
Japan’s telecommunications market
2. NTT’s plans for the deployment of its NGN
3. Conclusion
© 2007
19
New activities for the NGN
Upgrade the fixed
-line telephone network
fixed-line
to a broadband IP network by applying the
latest optical, broadband and IP
technologies
Deploy new broadband and ubiquitous
services
Create new markets by collaborating with
various service players on the network
© 2007
20
Conclusion
As one of the first carriers in the
world to implement an NGN, NTT
will be happy to share with Asian
Pacific countries our experiences
of NGN trials and deployment.
© 2007
21
© 2007
22