Transition from PSTN to NGN: Possible Scenarios ITU-D Regional Development Forum for the EUR and CIS Region NGN and Broadband, Opportunities and Challenges Chisinau, Moldova, 24 – 26 August 2009 NGN – Next Generation Network ITU-T Recommendation Y.2001: The NGN (Next Generation Network) is conceived as a concrete implementation of the GII (Global Information Infrastructure) NGN is a packet-based network able to provide telecommunication services and able to make use of multiple broadband, QoS-enabled transport technologies and in which service-related functions are independent from underlying transport related technologies. It enables unfettered access for users to networks and to competing service providers and/or services of their choice. It supports generalized mobility which will allow consistent and ubiquitous provision of services to users. 1 Incentives of transition to NGN (1) Historical aspects of the telecom market evolution Voice services were a “milking cow" for the telecom Operators in XX century. In XXI century situation changes, although voice services remain important source of revenue. Source: B. Jacobs. Economics of NGN deployment scenarios: discussions of migration strategies for voice carriers. – www.ieee.org. How much is subscriber eager to pay for broadband access in Russia, per month: $10 – 31,2%; $20 – 43,8%; $30 – 12,5%; $40 – 6,2%; $50 – 6,2%; >$50 – 0%. Source: Inform Courier Sviaz, October 2008 (in Russian). Incentives of transition to NGN (2) Economical aspects of the telecommunication Operator’s service Type of Operator’s costs Today Change Tomorrow Capital investments share 35% 1,25 43,75% Operational costs share 65% 0,5 32,5% Total volume of costs 100% – 76,25% Source: P.K. Edholm. Networks transformation: correlation of the resources limitation and system complexity. – Mobile telecommunications, 2005, №8. 2 Incentives of transition to NGN (3) Aspects of the traffic change Incentives of transition to NGN (4) Aspects of the equipment aging in the telecommunication networks 3 Incentives of transition to NGN (5) Aspects of integration and convergence Specifics of the access networks modernization Changes in the access network xDSL Tone frequency channel (two-wire circuit) . . . FTTx BWA Broadband paths Tone frequency channel (single-wire circuit) Time XX century XXI century 4 Statement of the transition to NGN problem (1) PSTN Operators should find viable strategy of the transition to NGN, which provides protection of investments in circuitswitched technology. Source: B. Jacobs. Economics of NGN deployment scenarios: discussions of migration strategies for voice carriers. – www.ieee.org. It is necessary to combine PSTN’s quality of service and IP technologies’ economical efficiency! Statement of the transition to NGN problem (2) 5 Quality of service indices for the NGN In the table below QoS indices for six classes are given. These values are defined for the following indices: IPTD – IP packet transfer delay, IPDV – IP packet delay variation, IPLR – IP packet loss rate, IPER – IP packet error rate. Source: ITU-T Recommendation Y.1541. QoS class IPTD IPDV IPLR IPER 0 100 ms 50 ms 10-3 10-4 1 400 ms 50 ms 10-3 2 100 ms U 10-3 3 400 ms U 10-3 4 1s U 10-3 5 U U U U IPDV definition F(t) - distribution function of the packets delay 1,0 ∆=0.001 IPDV = TMAX − TMIN Time 0 TMIN TMAX 6 QoS aspect: time irreversibility Speech quality impairment compensation in CS networks: Elaboration of the speech signal processing algorithms; Signal amplification (when necessary). Speech quality impairment compensation in IP networks under condition of the excessive packet exchange delay: Impossible in principle!!! QoS aspects: ISO model (1) 7 QoS aspects: ISO model (2) Z – normalized quantity of the IP packet mean delay between UNIs, T – propagation time between UNIs, N – acceptable number of NGN domains between two terminals: Z −T N≤ X + Y Modernization principles of the PSTN as a whole 8 Scenarios and variants of the transition to NGN Pragmatic approach towards NGN construction Initial stage − t0 : K j (t0 ) << M j (t0 ); time t1 : K j (t1 ) < M j (t1 ); dismantling CO (time t2 ) : K j (t2 ) = M j (t2 ) + K j (t2 ). 9 Two variants of the transition to NGN MSAN1 MSAN1 V5.2 V5.2 CO1 MSAN2 CO1 CO2 CO2 MSAN2 V5.2 V5.2 CO3 CO3 V5.2 V5.2 MSAN3 MSAN3 MSAN21 MSAN1 ADSL R1 VDSL R2 MSAN22 MSAN2 MSAN11 MSAN23 MSAN24 MSAN3 a) Variant of the NGN construction without change of the existing network MSAN25 Served area of the dismantled CO3 b) Variant of the NGN construction with changes according to preconceived plan Modernization of the urban network with transit exchanges (1) 10 Modernization of the urban network with transit exchanges (2) MSAN11 (61) IP network with QoS MSAN13 (21) MSAN22 R1 MSAN12 (62) MSAN23 R2 R6 MSAN24 MSAN25 MSAN63 R5 R3 MSAN31 MSAN51 MSAN32 MSAN52 R4 MSAN33 MSAN53 MSAN34 MSAN35 MSAN54 CR2 CR1 MSAN55 MSAN56 Modernization of the urban network with transit exchanges (3) 11 Modernization of the urban network with transit exchanges (4) IP network with QoS MSAN11 R2 MSAN22 R1 MSAN12 TX1o MSAN23 R5 R3 IP-PBX1 MSAN52 TX2o IP-PBX2 MSAN24 MSAN53 TX1i MSAN25 TX2i IP-PBX3 CO13 CR2 CO23 Toll exchange Modernization of the urban network with transit exchanges (5) MSAN11 (61) IP network with QoS MSAN13 (21) MSAN22 R1 MSAN12 (62) MSAN23 R2 R6 IP-PBX1 MSAN24 MSAN25 MSAN63 R5 R3 MSAN51 MSAN33 MSAN52 IP-PBX2 MSAN31 R4 MSAN32 IP-PBX3 MSAN53 MSAN34 MSAN35 MSAN54 CR2 CR1 MSAN55 MSAN56 12 Risk estimation for PSTN Operator Development of the PSTN without transition to NGN Construction of the NGN as overlaid network Pragmatic approach towards NGN construction Mean value Variation coefficient Mean value Variation coefficient Mean value Variation coefficient 0.81 0.25 0.40 0.59 0.35 0.69 Poll results acquired by means of Delphi method Economics and risks: typical NPV curves NPV (Net present value) RIII RII Payback period RI Time TI TII TMAX TIII II tI III IMAX tII Event “X” IIII tIII 13 Transition from PSTN to NGN: Possible Scenarios Thank you! Nikolay Sokolov, Saint-Petersburg e-mail: sokolov@niits.ru 14