Telecommunications @ Crossroads Philip K. Mutooni President IP.Phusion Technologies, Inc. 1 Current Network Infrastructure RBOC Toll Switch RBOC Toll Switch IXC Network Local Exchange Local Exchange IP Network Local ISP Local ISP 2 The Traffic Transition Model ■ ■ Assumptions: – Installed Capacity closely matched with peak traffic – Capacity growing at constant compounded rate Formulation: – C(τ)=Co(1+rx)τ where Co is a base capacity, rx is a voice or data growth rate, and τ is a time duration – Cov=αCod where α is a constant determined during the model’s calibration 3 Model Formulation GROWTH OF DATA AND VOICE CAPACITIES 900.00 Relative Capacity 800.00 700.00 600.00 500.00 Voice Traffic 400.00 Data Traffic 300.00 200.00 10 9 8 7 6 tc 5 4 3 2 to 0 Cod 0.00 1 Cov 100.00 Time * The general function used to plot these graphs was k(1+x)t. A different value of x was used in both the voice and data cases with x(voice) < x(data). 4 Desired Model Results ■ Five quantities of interest: 1 tl or the lead-user point: Defn - The point at which packet-data traffic required 10% of the total capacity 2 tc or the crossover point: Defn - The point where both types of service require the same capacity 3 te or the eclipse point: Defn - The point where packet-data traffic consumes 90% of overall backbone capacity 4 5 The time interval tc-tl The time interval te-tc 5 Calibrating the Traffic Transition Model ■ Four Step Process: 1 2 3 4 ■ Obtain Overall Capacity Ctotal at known points Decompose Ctotal into Cvoice and Cdata components Determine growth rates rv, rd, and rtotal Determine tl, tc, te Process applied to two data sets: – – For a selected MCI POP For a selected ATT POP 6 Model Results - MCI Case 8.5 8 7.5 7 6.5 6 5.5 5 4.5 4 3.5 3 2.5 2 1.5 1 Log Voice Capacity Log Data Capacity 2010 2008 2006 2004 2002 2000 1998 1996 1994 1992 1990 Log Total Capacity 1988 Log10(Capacity) MCI Traffic Transition Results (1988-2010) Year tl tc te t c- t l te-tc 1991 Jan 1 9 9 9 2007 8 yrs 8 yrs 7 Model Results - ATT Case AT&T Traffic Transition Results (1988-2010) 5.5 5 4.5 4 3.5 Log Voice Capacity 3 Log Data Capacity 2.5 2010 2008 2006 2002 2000 1998 1996 1994 1992 1990 2004 Log Total Capacity 2 1988 Log10(Capacity) 6 Year tl tc te tc-tl te-tc 1988 A pr 1997 2006 9 yrs 9 yrs 8 Model Results - Industry-wide 8.5 8 7.5 7 6.5 6 5.5 5 4.5 4 3.5 3 2.5 2 Log Voice Capacity Log Data Capacity 2010 2008 2006 2004 Year 2002 2000 1998 1996 1994 1992 1990 Log Total Capacity 1988 Log10(Capacity) Industry-Wide Traffic Transition Results (1988-2010) tl tc te t c -t l t e -t c 1988 N o v 1998 2007 10 years 9 years 9 Key Findings - General ■ Window in which data traffic increases to contribute 90% of overall traffic is 10 years from 1997. ■ Crossover point in 1998. ■ Suddenness of the change, as opposed to change itself, is key in determining post “crossover” industry structure. 10 Key Findings - IP Telephony ■ Due to short transition interval, growth of IP telephony will be very sudden and very significant ■ Potential of infrastructure sharing is key driver of IP telephony, not bandwidth savings 11 IP.Phusion Technologies, Inc ■ Mission: To be the premier provider of Open and Cross-Platform Support Systems for IP Telephony – – – “Shrink-wrap” Software: Billing and NMS Customized Software: Billing/CDR Interfaces Solutions: Consulting, System Integration, and Network roll-outs for Service Providers. Founded: By Researchers from ITC and LCS ■ Contact Info: www.ipphusion.com ■ info@ipphusion.com 12