ITUITU-BDT Regional Seminar on Fixed Mobile Convergence and new network architecture for the Arab Region Tunis, Tunisia, 2121-24 November 2005 Network Architecture consolidation towards NGN Oscar González Soto ITU Consultant Expert Strategic Planning and Assessment November 2005 Lecture - 1.3.5 - slide 1 ITU/BDT Network Architecture consolidation - O.G.S. Network Architecture towards NGN Content • Key factors for the evolution towards NGN • Services and revenue motivations. Requirements • Network architecture consolidation at transit, local and access levels • Topology and migration • Network optimization based on planning methods and tools • Support to Design November 2005 ITU/BDT Network Architecture consolidation - O.G.S. Lecture - 1.3.5 - slide 2 Network Architecture towards NGN Key Factors: Motivation • New services and revenue increase with multimedia services: - Compensate voice revenue reduction and increase BB related business • Cost reductions by sharing network infrastructure and systems - Savings are a function of network scenario, equipment modernization status and customers grow speed • Simplification of O&M, thus lowering OPEX - Integrated operation platforms, maintenance and training November 2005 ITU/BDT Network Architecture consolidation - O.G.S. Lecture - 1.3.5 - slide 3 Network Architecture towards NGN Key Factors: Operator Requirements (I) • Business continuity required to maintain ongoing dominant services and customers that require carrier-grade service • Flexibility to incorporate existing new services and react quickly to the ones that appear on real time (main advantage of IP mode) • Profitability to allow feasible return on investments and in the best practices market values November 2005 ITU/BDT Network Architecture consolidation - O.G.S. Lecture - 1.3.5 - slide 4 Network Architecture towards NGN Key Factors: Operator Requirements (II) • Survivability to allow service assurance in case of failures and external unexpected events • Quality of Service to guarantee the Service Level Agreements for different traffic mixes, conditions and overload. • Interoperabilty across networks to allow to carry end to end services for flows in different network domains November 2005 ITU/BDT Network Architecture consolidation - O.G.S. Lecture - 1.3.5 - slide 5 Network Architecture towards NGN Key Factors: Issues to care • Introduction of new services based on profitability • Interworking with existing PSTN and other operator's networks • QoS for guaranteed services and critical business customers • Tariff principles as a function of market demand and consumption of network resources (Backward Cost Assignment) • Universal Service Obligations for basic services and internet November 2005 ITU/BDT Network Architecture consolidation - O.G.S. Lecture - 1.3.5 - slide 6 Network Architecture towards NGN Content • Key factors for the evolution towards NGN • Services and revenue motivations. Requirements • Network architecture consolidation at transit, local and access levels • Topology and migration • Network optimization based on planning methods and tools • Support to Design November 2005 ITU/BDT Network Architecture consolidation - O.G.S. Lecture - 1.3.5 - slide 7 Network Architecture towards NGN Architecture Consolidation: Topology Topological changes impact on infrastructure and are slower to implement than technology substitution • Less network nodes and links due to the higher capacity of systems (one order of magnitude). • Same capillarity at access level due to identical customer location • Topological connectivity higher for high capacity nodes and paths for security • High protection level and diversity paths/sources in all high capacity systems, both at functional and physical levels November 2005 ITU/BDT Network Architecture consolidation - O.G.S. Lecture - 1.3.5 - slide 8 Network Architecture towards NGN Existing networks and architecture NMC • 5 different network types to handle telecom services SCP IN SS7 • TDM for fixed and mobile networks working in circuit mode with end to end reserved paths Mob LEX/TEX NAS TDM Data ATM/IP LEX PCM RSU POTS MUX/DSLAM • SS7 and IN network working with message switching mode • Data network working with leased lines and packet mode with different and conventional IP protocols ISDN HDSL/XDSL November 2005 ITU/BDT Network Architecture consolidation - O.G.S. Lecture - 1.3.5 - slide 9 Network Architecture towards NGN Existing networks and architecture TRANSIT NETWORK NATIONAL LAYER REGIONAL LAYER LEX LAYER RU LAYER customers LAYER November 2005 • Hierarchical topology with 4 to 5 layers, connectivity to the upper next layer and within each layer as a function of economical optimization • Number of nodes as a function of O/D traffic and nodes capacity • Service handling for media, signaling and control at all exchange nodes •Carrier grade quality with well defined QoS criteria and standardized engineering rules ITU/BDT Network Architecture consolidation - O.G.S. Lecture - 1.3.5 - slide 10 Network Architecture towards NGN Architecture: NGN Layers Legacy Network Signaling/Service Network Independent Services Legacy Network Media November 2005 Lecture - 1.3.5 - slide 11 ITU/BDT Network Architecture consolidation - O.G.S. Network Architecture towards NGN Architecture migration: Topology What changes from current scenario towards target network ? NMC OSS SCP IN SS7 LEX/TEX NAS TDM Distributed Switching Transport/Media Data ATM/IP LEX Access gateway Packet Network IP/MPLS/CAC Access gateway RSU Trunk gateway Other Networks Access gateway DSL PCM POTS Softswitch Control Mob Services MUX/DSLAM ISDN Wireless gateway DLC HDSL/XDSL November 2005 ITU/BDT Network Architecture consolidation - O.G.S. Lecture - 1.3.5 - slide 12 Network Architecture towards NGN Architecture Consolidation: Topology TRANSIT NETWORK NATIONAL LAYER REGIONAL LAYER LEX LAYER RU LAYER Single-layered Structure Simplification NATIONAL/REGIONAL LAYER TRANSIT NETWORK LEX/GW LAYER RU LAYER November 2005 ITU/BDT Network Architecture consolidation - O.G.S. Lecture - 1.3.5 - slide 13 Network Architecture towards NGN Architecture Consolidation: Access Access dominated by physical infrastructure cost and deployment time • Quick deployment of DSL and Multimedia Services • FO closer to customer when implementing new outside plant or renovating existing one • New Wireless technologies for low density customer scenarios • Shorter LL length than classical network to be prepared for high bandwidth Multimedia services November 2005 ITU/BDT Network Architecture consolidation - O.G.S. Lecture - 1.3.5 - slide 14 Network Architecture towards NGN Architecture Consolidation: Wireline Access Typical historical Access Network structure Local: ~ 40 km Distribution: mean value ~1,7 km Drop: mean value ~300 m branching cables . . main cable SDF SDF drop line . . FDF SDF MDF NTBA SDF LEX drop line LEX MDF FDF SDF Local Exchange Main Distribution Frame Feeder Distribution Frame Subscriber Distribution Frame November 2005 Lecture - 1.3.5 - slide 15 ITU/BDT Network Architecture consolidation - O.G.S. Network Architecture towards NGN Architecture Consolidation: Access evolution Typical Access Network evolution Local: ~ 40 km Distribution: mean value ~1,7 km Drop: mean value ~300 m branching cables FO Optical Interface LEX/GW LEX GW MDF DLC SDF FO . DLC SDF . . SDF drop line . . . SDF DLC drop line NTBA . . Local Exchange Gateway Main Distribution Frame Digital Loop Carrier Subscriber Distribution Frame Fiber Optic DLC November 2005 ITU/BDT Network Architecture consolidation - O.G.S. Lecture - 1.3.5 - slide 16 Network Architecture towards NGN Architecture Consolidation: Local Dominated by functions migration investment and interoperability • Move from joint switching and control to separated control and media GW • Introduce Multimedia Services at all areas • Optimize number, location of nodes and interfaces among existing and new network • Requires longer time and higher investments due to variety of geoscenarios and geographical distribution November 2005 ITU/BDT Network Architecture consolidation - O.G.S. Lecture - 1.3.5 - slide 17 Network Architecture towards NGN Architecture Consolidation: Local Softwitches/ MGCs located in few sites Packet mode network Trunking gateway TEX Layer Trunking gateway Access gateway IP links Access gateway LEX Layer Exchange A November 2005 ITU/BDT Network Architecture consolidation - O.G.S. Exchange A subscriber “Growth” Lecture - 1.3.5 - slide 18 Network Architecture towards NGN Architecture Consolidation: Core Dominated by high capacity and protection level • Overlay deployment for full coverage in all regions • Quick deployment needed for homogeneous end to end connections • Strong requirements for high quality, protection and survivability • Importance of the optimization for location and interconnection November 2005 ITU/BDT Network Architecture consolidation - O.G.S. Lecture - 1.3.5 - slide 19 Network Architecture towards NGN Architecture Consolidation: Core Softwitches /MGCs in few sites Trunking gateway in each regional site Regional Level IP links Packet mode network short distance LEX Layer Local Exchanges Remote Units November 2005 ITU/BDT Network Architecture consolidation - O.G.S. Lecture - 1.3.5 - slide 20 Network Architecture towards NGN Architecture Consolidation: Core Softswitches/MGCs located in few sites IP links Long distance Packet mode Regional layer network Trunking gateway in each local site Local Exchanges LEX Layer Remote Units November 2005 ITU/BDT Network Architecture consolidation - O.G.S. Lecture - 1.3.5 - slide 21 Network Architecture towards NGN Architecture Consolidation: Combined Segments Where to start and how to co-ordinate migration? Network “consolidation” Cost Optimisation of the network - Reducing nodes and increase their capacity - Deployment of ADSL and multiservice access Network expansion NGN solution : - Cap and Grow; this means keeping the existing PSTN network as it is, and grow demand with NGN equipment Network replacement Replacement of out-phased (end of life) TDM equipment - gradual replacement : this means coexistence of the two technologies - full accelerated replacement with a short transition period Need to optimize overall network evolution: technically and economically November 2005 ITU/BDT Network Architecture consolidation - O.G.S. Lecture - 1.3.5 - slide 22 Network Architecture towards NGN Smooth Smooth migration migration to NGN to NGN Architecture Consolidation: Combined Segments (I) RSP DS International Core IN Data Mux PSTN Class 4 SSP Core PSTN Class 5 Multiservice Node Subscriber unit Edge Access Customers November 2005 ITU/BDT Network Architecture consolidation - O.G.S. Lecture - 1.3.5 - slide 23 Network Architecture towards NGN Architecture Consolidation: Combined Segments (II) Softswitch Optical NGCR NGER International Core AGW Core Associated TK GW Multiservice node MM Subscriber unit Edge Access Customers November 2005 ITU/BDT Network Architecture consolidation - O.G.S. Lecture - 1.3.5 - slide 24 Network Architecture towards NGN Architecture Consolidation: Combined Segments Overall impact of evolution on network CAPEX and OPEX CAPEX OPEX • TDM and NGN CAPEX are close • OPEX in NGN trends to be lower • NGN CAPEX in the first years driven by geographic coverage • • Access systems represent a large part of CAPEX Migration scenarios will have a mix of TDM OPEX (installed base) and NGN OPEX (substitution and growth) • Significant impact of manpower cost due to convergence in operations – similar values in TDM and NGN Key factors for the evaluation: Geo-scenarios, Network grow rates, Aging of equipment, New services November 2005 ITU/BDT Network Architecture consolidation - O.G.S. Lecture - 1.3.5 - slide 25 Network Architecture towards NGN Cost drivers and trends • Network physical infrastructure as a function of location and density (costs proportion around 70% in the access segment) • Volume of customers per category • Bandwidth demand per origin/destination • Packet processing rates for control related functions • Variety of applications/services and related platforms • Content storage and location within the network • Leasing of physical or communication resources Fundamental importance of economies of scale by volume and convergence at network resources, service platforms and OSS November 2005 ITU/BDT Network Architecture consolidation - O.G.S. Lecture - 1.3.5 - slide 26 Network Architecture towards NGN Architecture Consolidation: Scenario evaluation • Net Present Value (NPV) for the overall migration project is the best global evaluator NPV for C4 Scenario in alternative A NPV for C5 Scenario in alternative B 50 000 20 000 15 000 - 10 000 (5 000) 2004 2005 2006 2007 2008 (50 000) 5 000 2004 2005 2006 2007 2008 delta CAPEX Opex savings cumulated DCF (10 000) delta CAPEX Opex savings cumulated DCF (100 000) (150 000) (15 000) (200 000) (20 000) (25 000) (250 000) A large variety of country scenarios and transition strategies generate major differences in the economical results Planning to be performed per country and operator November 2005 ITU/BDT Network Architecture consolidation - O.G.S. Lecture - 1.3.5 - slide 27 Network Architecture towards NGN Content • Key factors for the evolution towards NGN • Services and revenue motivations. Requirements • Network architecture consolidation at transit, local and access levels • Topology and migration • Network optimization based on planning methods and tools • Support to Network Design November 2005 ITU/BDT Network Architecture consolidation - O.G.S. Lecture - 1.3.5 - slide 28 Network Architecture towards NGN Support tools: Design and Optimization (I) Required functionality for Technical design tools • Service demands characterization and traffics for VoIP and NGN multiservice flows • Conceptual Network Design and Capacity Planning • • Comparison of different network structures Routing flows for most typical cases including OSPF, shortest path, widest path and weighted cost functions. • Optimizing locations and connections of network gateways • Cost, Performance and Reliability Analysis • Estimation of investment costs for the rollout and the extension of the investigated multi-service network November 2005 ITU/BDT Network Architecture consolidation - O.G.S. Lecture - 1.3.5 - slide 29 Network Architecture towards NGN Support tools: Design and Optimization (II) Required functionality for Technical design tools • Estimation of end-to-end delays • Technical Site and System Planning • Allocation of the IP or MPLS links • Formation of virtual networks • Routing over ATM links or PDH/SDH systems or tunneling via other IP links • Sub-networking and addressing • Configuring the network elements (IP router) November 2005 ITU/BDT Network Architecture consolidation - O.G.S. Lecture - 1.3.5 - slide 30 Network Architecture towards NGN Support tools: Design and Optimization November 2005 ITU/BDT Network Architecture consolidation - O.G.S. Lecture - 1.3.5 - slide 31 Network Architecture towards NGN Support tools: Design and Optimization November 2005 ITU/BDT Network Architecture consolidation - O.G.S. Lecture - 1.3.5 - slide 32 Network Architecture towards NGN Support tools: Design and Optimization November 2005 ITU/BDT Network Architecture consolidation - O.G.S. Lecture - 1.3.5 - slide 33 Network Architecture towards NGN Support tools: Design and Optimization November 2005 ITU/BDT Network Architecture consolidation - O.G.S. Lecture - 1.3.5 - slide 34 Network Architecture towards NGN Support tools: Design and Optimization November 2005 ITU/BDT Network Architecture consolidation - O.G.S. Lecture - 1.3.5 - slide 35 Network Architecture towards NGN Summary of Key Factors • Plan business and services first, later the network with proven solutions. • Implement pilot cases before network migration due to the many new technical issues • Differentiation to competitors on new services and quality • Design financial performance with best business practices: compare and optimize NPV. November 2005 ITU/BDT Network Architecture consolidation - O.G.S. Lecture - 1.3.5 - slide 36