Information and Communication Networks Networking Beyond Limits Siemens - Your vendor of choice For the Next Generation Network (NGN) Needs of customers: Revenue generating Demand-oriented Infrastructure & Technology 9/3/2002 ICN WN CM TS page 2 ti o n eg ra In t Information and Communication Networks Networks s Efficiency of infrastructure Self-managing ice Optimized utilization Applications rv Se Additional revenues Challenges and opportunities Why Next Generation Networks? Changing Markets Carrier Business Models Modular network architecture Common technologies for voice and data services Open platforms and Application Interfaces Next Generation Networks are driven by a changing market environment Information and Communication Networks 9/3/2002 ICN WN CM TS page 3 Economies of scale network costs Revenue and timeto-market demands TDMTechnology Features SURPASS-enhanced NGN NGN IPTechnology NGN IPTechnology Comparable costs TDMTechnology Time Take advantage of the “Economies of scale” and the service richness of Next Generation Network Information and Communication Networks Time 9/3/2002 ICN WN CM TS page 4 Costs/connection Challenges and Opportunities A simple TDM-NGN comparison Challenges and Opportunities Advantages of a new architectural paradigm SS7 ! Switching matrix Line Card Trunk I/F Line Card Trunk I/F Signalling Gateway Softswitch ! ! Distributed Distributed MSF* MSF* Architecture Architecture SS7 ! ! Subscriber Subscriber Gateway Gateway Subscriber Subscriber Gateway Gateway IP/ATM Network Integrated functionality Proprietary platforms and partly proprietary feature development Standard IN interface for externallyprovided services Trunk Trunk Gateway Gateway ! Trunk Trunk Gateway Gateway ! Open platforms Open interfaces between all components Softswitch provides Trunk- and LocalSwitch features Gateways support various media stream conversions *MSF=Multiservice Switching Forum; defined a widely accepted architectural model for carrier convergence Information and Communication Networks 9/3/2002 ICN WN CM TS page 5 Call Processor, SS7 Processor Maintenance & Administration PSTN PSTN Switch Switch Next Generation Networks with SURPASS Information and Communication Networks 9/3/2002 ICN WN CM TS page 6 Information and Communication Networks SURPASS Solution overview MSC Virtual Trunking PBX Phone IP Phone the packet based core for fixed and mobile networks IP PBX IAD & CPG Packet Local Switch Voice over Broadband LEX consolidation, replacement, user growth any service over your broadband subscriber line SIP, multimedia Applications SURPASS Switch Switch Switch Switch PSTN NextGen Applications SIP-based multimedia, ...across any network we SURPASS Information and Communication Networks MSC SCPSCP PLMN IN NGN Signaling Overlay Network the universal signaling bridge for all networks 9/3/2002 ICN WN CM TS page 7 Switch Value Value adding adding services services platforms platforms SURPASS SURPASS hiQ hiQ 4000 4000 SURPASS SURPASS hiQ hiQ 6200 6200 Softswitch Softswitch full full feature feature set set SURPASS SURPASS hiQ hiQ 9200 9200 Gateways Gateways to to TDM TDM networks networks SURPASS SURPASS hiG hiG 1200 1200 Access Access gateways gateways SURPASS SURPASS hiA hiA 7600 7600 SURPASS - Siemens’ complete product portfolio for NGNs Information and Communication Networks 9/3/2002 ICN WN CM TS page 8 The bricks that make a voice NGN work SURPASS builds the Next Generation Network MSF Model Value added services SCP IN Subscriber Subscriber Gateway Gateway Management Control Signalling Gateway Softswitch NetManager NetManager Subscriber Subscriber Gateway Gateway IP/ATM Network Trunk Trunk Gateway Gateway Trunk Trunk Gateway Gateway SURPASS SURPASS hiS hiS SURPASS SURPASS hiQ hiQ Core IP Backbone Edge SURPASS SURPASS hiA hiA DSLAM /DLC Access Access Consolidation Consolidation CMTS Access CPGs IP IP Local Local Office Office CM/MTA IADs IP IP Customer Customer Premises Premises Information and Communication Networks IP PBX IP Phones/ Terminals IP IP Clients Clients and and Terminals Terminals 9/3/2002 ICN WN CM TS page 9 SURPASS SURPASS hiR hiR SURPASS SURPASS hiG hiG SURPASS Streamline your NGN business with NetManager Cost saving in the integration ! Integral part of the SURPASS network solution ! Open interfaces allow easy adaptation into existing Cross Domain and Customer Care systems ! Cost saving in procurement (CAPEX) ! Industry standard hardware and software ! Modular and scalable hardware and software architecture ! Cost saving in operation (OPEX) ! Easy to learn Graphical User Interface ! Automated frequent and complex OA&M tasks ! Revenue generation ! Fast service provisioning of subscriber services ! Most efficient network usage with Network Management applications NetManager guarantees that the SURPASS network solution is „ready for business“: Information and Communication Networks 9/3/2002 ICN WN CM TS page 10 ! ! Reuse of the world's most reliable TDM software, with feature set fully migrated to IP ! Only carrier-grade softswitch in the industry. Just one can ! complete more than 4,400 call attempts per second ! support 250,000 subscribers, 240,000 trunk ports, 120,000 simultaneous calls Information and Communication Networks 9/3/2002 ICN WN CM TS page 11 Why SURPASS? ! ! ! ! A full set of unique, harmonized NGN solutions, combinable with one another to create a common basis for a future-proof business Operational benefits due to management integration of all network elements, across all SURPASS solutions Steady stream of new applications with “we SURPASS” partner program Best-in-class performance, scalability, and reliability proven in major carriers worldwide Information and Communication Networks 9/3/2002 ICN WN CM TS page 12 Why SURPASS? Business Case NextGen Networks: Voice and Data come together Today Target Step 1 NextGen & SIP Applications RSU Local Switch Local Switch POTS ISDN Trunks PSTN / ISDN POTS ISDN Trunks Softswitch Softswitch RSU Switch Switch Access Gateway PSTN / ISDN xDSL Voice via splitter DATA Separate PSTN and data networks xDSL IP ATM FR Voice Gateway Voice Gateway POTS ISDN Trunks VOICE & DATA Add Softswitch and VoiceGW for converging networks and introducing NextGen Applications Voice Gateway RSU IP ATM FR VOICE & DATA Replace the TDM end offices and complete the convergence into an all IP network SURPASS SURPASS provides provides the the only only true true Keep, Keep, Cap Cap and and Grow Grow approach approach in in the the industry industry -- allowing allowing carriers carriers and and service service providers providers to to smoothly smoothly transition transition from from TDM TDM to to packet packet at at their their own own pace pace Information and Communication Networks 9/3/2002 ICN WN CM TS page 13 POTS ISDN Trunks NextGen & SIP Applications Tandem Switch (WM) Business Case Key Assumptions Step 1 of Voice and data come together Network size: 10‘ million subscribers Messaging Info directories Conferencing IP Centrex Call Control Total additional revenues 4% 3% 1% 8% 4% 20 % Source: Business Cases developed using Gartner Consulting Methodology and Research Business case assumptions (2002-2006) (e.g. Western Europe) " Focus NGN deployment on regional sub-net cluster (936K lines, 16 local and 2 transit exchanges, zero subscriber growth) " Incremental phase-out of TDM switch capacity (OPEX savings) " Introduction of NextGen Applications Information and Communication Networks 9/3/2002 ICN WN CM TS page 14 New Applications: (US) Business Case Key Assumptions Step 1 of Voice and Data come together Business Case Assumptions (2002-2006) (USA) " Focus NGN deployment on representative regional cluster (LATA) (992K lines, 32 end-offices and 2 tandem offices, 3% lineside growth p.a.) " Convert LATA trunk network to packet in first year (OPEX savings) " Introduction of NextGen Applications in first year (increase revenue) 13% Unified Messaging 2.5% Res & 6% Biz @ ARPU $10/user/month 8% IP Call Center 3% of Agents @ ARPU $300/user/month 79% NextGen Applications Revenue IP Centrex 6% PBX Users & 12% Single Line Biz @ ARPU $30/user/month Information and Communication Networks Source: Business Cases developed using Gartner Group Methodology and Research 9/3/2002 ICN WN CM TS page 15 NextGen Applications Penetration Assumptions (WM) Voice and data come together Business Case Results Replacing the transit network OPEX savings Cum. NPV (12%) Year 1 Year 2 Year 3 Year 4 Year 5 Focus Focus on on modernization modernization of of the the network network with with rapid rapid deployment deployment of of NGN NGN to to achieve achieve 67% 67% OPEX OPEX savings savings Information and Communication Networks Source: Business Cases developed using Gartner Group Methodology and Research 9/3/2002 ICN WN CM TS page 16 CAPEX SURPASS worldwide success FI LV DK DE NL GB BE CZ LT AT CH FR RU IT PT US GR CH OM CR EG BR AE TH SG ID ZA AR May 2002 Countries with SURPASS Information and Communication Networks 9/3/2002 ICN WN CM TS page 17 TW SURPASS Meets your expectations Profitability Perfect Fit Measurable economic value for your business Taylor-made solutions for your Next Generation Network SURPASS Carrier Grade modular, scalable solutions Reality Your way to the Next Generation Network Information and Communication Networks 9/3/2002 ICN WN CM TS page 18 Reliability Siemens, your partner for the Next Generation Network race UnSURPASSed technology Deep market and industry knowledge Business value for our customers Financial strength and global footprint Information and Communication Networks 9/3/2002 ICN WN CM TS page 19 Global end-toend solutions and integration know-how Maximizing the Return on Assets with Next Generation Networks Information and Communication Networks 9/3/2002 ICN WN CM TS page 20 SURPASS Networking Beyond Limits