Launching an NGN commercial
service - NTT’s approach April 7, 2009
Tatsuro Murakami
NTT Information Sharing laboratory Group
(C)2009 NTT
Rapid growth
of Internet
IP network Broadband
demand
Pre-NGN
1999:
Started IP network
(pre-NGN)
80 million
60 million
PSTN
Telephone
Mobile phone
IP
（2000.3）
40 million
1999: Start IP network (pre-NGN)
for Internet access
Internet
(fixed networks +
mobile internet)
20 million
Broadband
(fiber optic +
DSL, etc.)
ISDN
3/94
3/95
3/96
3/97
3/98
3/99
3/00
3/01
3/02
3/03
(C)2009NTT
2
Rapid growth
of Internet
IP network Broadband
demand
Pre-NGN
1999:
Started IP network
(pre-NGN)
Promotion of
broadband
9M
fiber-optic
subscriber
base
2001
Started fiber-optic
access (pre-NGN)
ADSL (NTT)
PSTN
DSLAM
IP
FTTH (NTT)
Number of users (Million)
10.0
8.0
Expanding fiber-optic
subscriber base
6.0
4.0
2.0
4
05
Q2
05
Q4
06
Q2
06
Q4
07
Q2
07
Q4
04
Q
2
04
Q
4
03
Q
2
03
Q
4
02
Q
2
0.0
02
Q
2001: Start fiber-optic access service
(pre-NGN)
(C)2009NTT
3
Triple play
Development
service
of IP services
Rapid growth
of Internet
IP network Broadband
demand
Pre-NGN
1999:
Started IP network
(pre-NGN)
2001
Started fiber-optic
access (pre-NGN)
Promotion of
broadband
9M
fiber-optic
subscriber
base
2004
Started triple
play service
PSTN
DSLAM
IP
Expanding fiber-optic
subscriber base
2001: Start fiber-optic access service
(pre-NGN)
PSTN
DSLAM
IP
Developing triple
play service
2004: Started triple play (pre-NGN)
4
(C)2009NTT
Triple play
Development
service
of IP services
Rapid growth
of Internet
IP network Broadband
demand
Pre-NGN
1999:
Started IP network
(pre-NGN)
2001
Started fiber-optic
access (pre-NGN)
FLET’s
Promotion of
broadband
9M
fiber-optic
subscriber
base
2004
Started triple
play service
Service features
started 1999
– Users can access their contracted ISP
– Best-effort network service for internet access
– Fixed monthly charge
B-FLET’s
Variants (Peak rate: 100Mbps)
started 2001
– Business type (for large businesses)
– Basic type (for SOHO & heavy users)
– Condominium type (for mass market users)
– Hyper-Family/Premium type (for mass market users)
Services on B-FLET’s (Triple Play)
started 2004
– High Speed Internet access
– IPTV up to 32,000 VODs, 100 multicast channels, including HDTV
– RF video up to 300 channels, including HDTV
– POTS quality VoIP
5
(C)2009NTT
Triple play
Development
service
of IP services
Rapid growth
of Internet
IP network Broadband
demand
Pre-NGN
1999:
Started IP network
(pre-NGN)
2001
Started fiber-optic
access (pre-NGN)
(Yen)
Promotion of
broadband
9M
fiber-optic
subscriber
base
2004
Started triple
play service
ARPU of broadband services
6,000
5,000
5,370
5,607
estimate
FY 2007
FY 2008
5,120
4,800
4,000
FY 2005
FY 2006
6
(C)2009NTT
Triple play
Development
service
of IP services
Rapid growth
of Internet
Timing
IP network
Pre-NGN
1999:
Started IP network
(pre-NGN)
Broadband
demand
2001
Started fiber-optic
access (pre-NGN)
Promotion of
broadband
9M
fiber-optic
subscriber
base
2004
Started triple
play service
Timing of NGN launch….
z Establishment of nationwide customer base (9M subscriber)
Solutions brought by NGN
Requirements
z Low cost structure
Converged network
z Reliability and traffic control
Carrier-grade IP network
z Start of triple play services
Solutions brought by NGN
Requirements
z New telephone service menu for IP era
Simulation base PSTN evolution
z Attractive network for content providers
QoS and Capacity
z Market expansion to new business areas
Open Interface
7
(C)2009NTT
Triple play
Development
service
of IP services
Rapid growth
of Internet
Timing
IP network
Pre-NGN
1999:
Started IP network
(pre-NGN)
Promotion of
broadband
Broadband
demand
2001
Started fiber-optic
access (pre-NGN)
9M
fiber-optic
subscriber
base
2004
Started triple
play service
Developing triple
play service
Field trial
PSTN
DSLAM
IP
2004: Started triple play (pre-NGN)
Timing
Significance of the field trials
•The starting point for collaboration with
service providers.
•Verification of the NGN implementation
8
(C)2009NTT
Field Trials of NTT’s NGN Dec. 2006 – Dec. 2007
Objectives : - Verification of the NGN implementation
- Creation of new business opportunity with ASPs
- Building consensus to use NGN as a communication
infrastructure of the future
Various services through tie-ups with IThome appliance manufacturers and ASPs
Osaka area
Open connectivity
functions
NGN
IP multicast
function
Security
functions
End-to-end
quality control
Tokyo area
Base station
IP telephony
FMC
Video
distribution
Internet
access
9
(C)2009NTT
Examples of services tested in the trial
■ NGN for Business
- High definition visual communication
- Wideband IP conference calls
- Enterprise-oriented network service
- Push to talk with multimedia over NGN, etc.
■ NGN for Life
- Broadcast retransmission over IP
- High-definition IPTV service
- IP high-definition videophone
-Wideband IP phone
-Ubiquitous network service for children’s safety, etc
■ NGN for Society
- Telepathology
- Home security and control
- Healthcare
- Gentle touch supervision by robot, etc.
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(C)2009NTT
Alternative ways of migration to the NGN
PSTN
PSTN
PSTN
Shift
(at customer’s will)）
NGN
Overlay with the PSTN
NGN
Provide new
service structure
Shift (at the provider’s will)
IP network
PSTN
Maintain existing services
Replacement of the PSTN
NGN
Add new services
11
(C)2009NTT
Alternative approaches to migrating telephony
Use of the IMS to build an IP network
and introduce broadband services
APL APL
Total NGN
IMS
One-step approach
PSTN
APL APL
FTTx
IMS
Switch
FTTx
AGCF
Two-step approach
Soft
Switch
AGW
DSL
APL APL
Soft
Switch
AGW
Use of softswitch to build an IP network
+ use of the IMS to introduce broadband services
IMS
MSAN
12
(C)2009NTT
Triple play
Development
Service
service
of IP services
creation
Rapid growth
of Internet
Timing
IPnetwork
Pre-NGN
1999:
Started IP network
(pre-NGN)
Broadband
demand
2001
Started fiber-optic
access (pre-NGN)
PSTN
NGN
Promotion of
broadband
2004
Started triple
play service
9M
Expansion of
fiber-optic area coverage
subscriber
base
2008
Started commercial
NGN
Start from triple play
with QoS and security
Maturity
of NGN
2010
To have 20M
Fiber-optic
subscribers
PSTN
NGN
DSLAM
DSLAM
IP
2008: NGN commercialization
IP
Small start and rapid
expansion of service
area coverage
2010: 20M fiber-optic service subscribers
z Small start
z Covering a wide area in short time frame
z Version up from pre-NGN
z Same categories of services = upward compatibility + QoS and security
z New services aimed towards new business areas
13
(C)2009NTT
Triple play
Development
service
of IP services
Rapid growth
of Internet
Timing
IP network Broadband
demand
Pre-NGN
1999:
Started IP network
(pre-NGN)
2001
Started fiber-optic
access (pre-NGN)
07
Ethernet
Service
Video
Distribution
IP broadcast
retransmission
VOD etc.
Launch of Commercial Services
B-FLET’S
&
Hikari Denwa
services
Promotion of
broadband
2004
Started triple
play service
FY 2008
9M
Expansion of
fiber-optic area coverage
subscriber
base
2008
Started commercial
NGN
FY 2009
FY 2010
Launch in certain areas of Tokyo, Osaka and some more
Rollout in the 23 wards in Tokyo, the 06
area in Osaka, Yokohama, Kawasaki,
Chiba, and Saitama
Expansion in other
ordinance- designated cities
Expansion in entire
current fiber access area
by the end of FY 2010
Rollout in major cities including those
with prefectural government offices
Launch in certain areas of Tokyo and Osaka
Expansion in major cities nationwide
including ordinance-designated cities and
those with prefectural government offices
Tokyo and Osaka
Service rollout
according to user needs
Development in conjunction with NGN development & user needs
*2
Service offering in balance with NGN development
14
(C)2009NTT
Triple play
Development
Service
service
of IP services
creation
Rapid growth
of Internet
Timing
IP network Broadband
demand
Pre-NGN
1999:
Started IP network
(pre-NGN)
2001
Started fiber-optic
access (pre-NGN)
Category
Promotion of
broadband
9M
Expansion of
fiber-optic area coverage
subscriber
base
2004
Started triple
play service
2008
Started commercial
NGN
Network services on NGN
Existing IP network services
Fiber Access Service
-The same as the existing
-Single-dwelling for family (~100Mbps)
-Multi-dwelling for apartments (~100Mbps)
-Office use (~1Gbps)
IP telephony
(0AB-J)*2
-HIkari Denwa incl. both existing
quality and high quality New
-Business type is upcoming
-Video telephony incl. existing qualityNew
and two higher quality grades
-Hikari Denwa incl. office type
VPN service
-Center-end type, CUG type
-Guaranteed QoS is upcoming
-Office & Group access
Service for
content distribution
-The same as existing
- unicast/ multicast with secured
bandwidth
New
-FLET’S .Net EX/ v6 cast (unicast, multicast)
Ethernet service
- The same as existing and interprefectural
New
-Business Ethernet (intra-prefectural)
Video telephony
-Video telephony
15
(C)2009NTT
Triple play
Development
Service
service
of IP services
creation
Rapid growth
of Internet
Timing
IP network Broadband
demand
Pre-NGN
1999:
Started IP network
(pre-NGN)
2001
Started fiber-optic
access (pre-NGN)
Promotion of
broadband
2004
Started triple
play service
9M
Expansion of
fiber-optic area coverage
subscriber
base
2008
Started commercial
NGN
ISP/ ContensP/ ASP etc.
Collaborate
Incubation
Support
-Marketing
-Technology
consulting
-Leverage
R&D results
Collaborate
Next-Generation
Services
Joint-Development
Forum
Information &
Environment
-Seminars etc.
-Utilize Test Beds
-Exhibition Space
‘NOTE’
-Enhance SNI & UNI
Contribute Capital
as necessary
Service Creation & Commercialization
e.g. Telemedicine, Remote education, Telecommuting etc.
16
(C)2009NTT
Triple play
Development
Service
service
of IP services
creation
Rapid growth
of Internet
Timing
IPnetwork
Pre-NGN
1999:
Started IP network
(pre-NGN)
Broadband
demand
Promotion of
broadband
2001
Started fiber-optic
access (pre-NGN)
PSTN
NGN
2004
Started triple
play service
Systematic
Maturity
Completion
migration
of NGN
of NGN
9M
Expansion of
fiber-optic area coverage
subscriber
base
2008
Started commercial
NGN
to NGN
2010
To have 20M
Fiber-optic
subscribers
Systematic migration
from existing IP network
2012
Completion of
the migration
to NGN
NGN
PSTN
DSLAM
IP
2010: 20M fiber-optic service subscribers
DSLAM
IP
2012: Completion of the migration
from existing IP network to NGN
17
(C)2009NTT
Triple play
Development
Service
service
of IP services
creation
Rapid growth
of Internet
Systematic
Maturity
Completion
migration
of NGN
of NGN
Timing
1999:
Started IP network
(pre-NGN)
Broadband
demand
2001
Started fiber-optic
access (pre-NGN)
Promotion of
broadband
2004
Started triple
play service
9M
Expansion of
fiber-optic area coverage
subscriber
base
2008
Started commercial
NGN
E-mail Web TV (1seg) Multi-media
TV phone Camera Games
terminal
45M
Promotion of voice and IP infrastructure
En
dbro to-en
adb d IP
and
IP network
Pre-NGN
to NGN
2012
Completion of
the migration
to NGN
Start
LTE
2001
Start of 3G
z Deployment of both fixed and mobile full-IP network infrastructure will be in 2010
z This will be based on 3G infrastructure subscriber base started in 2001
z Mobile handsets have already become multi-media terminals using i-mode,
video phone, 1seg TV, etc.
z LTE will drive end-to-end IP broadband communications.
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(C)2009NTT
Questions for launching the NGN
There are two questions regarding the launch of the NGN
• Chicken or egg?
Which comes first? (or, Highway or sports car?)
NTT may appear to be looking at infrastructure alone.
However, NTT’s approach is based on synchronizing
development of services and infrastructure
• From where do subscribers migrate ?
What is the subscriber base ?
BT:
Migrate from PSTN
Europe: Migrate from GSM world
NTT: Migrate from IP broadband
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(C)2009NTT
NTT’s approach is based on synchronizing
development of services and infrastructure
Triple play
Development
Service
service
of IP services
creation
IPnetwork
Pre-NGN
1999:
Started IP network
(pre-NGN)
Broadband
demand
2001
Started fiber-optic
access (pre-NGN)
Promotion of
broadband
2004
Started triple
play service
9M
Expansion of
fiber-optic area coverage
subscriber
base
2008
Started commercial
NGN
E-mail Web TV (1seg) Multi-media
TV phone Camera Games
terminal
45M
Promotion of voice and IP infrastructure
2001
Start of 3G
Systematic
Maturity
Completion
migration
of NGN
of NGN
En
dbro to-en
adb d IP
and
Rapid growth
of Internet
to NGN
2012
Completion of
the migration
to NGN
Start
LTE
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(C)2009NTT
NTT subscriber base and revenue source will be
migrated to NGN from IP broadband
Triple play
Development
Service
service
Revenue
source
of IP services
creation
pre-NGN
pre-NGN
IPnetwork
Promotion of
Pre-NGN
1999:
Started IP network
(pre-NGN)
Broadband
demand
2001
Started fiber-optic
access (pre-NGN)
9M
Expansion of
fiber-optic
Customer-base
area coverage
broadband
subscriber
base
2004
Started triple
play service
NGN
2008
Started commercial
NGN
Systematic
Maturity
Completion
migration
of NGN
of NGN
En
d-t
bro o-en
adb d IP
and
Rapid growth
of Internet
NGN
to NGN
2012
Completion of
the migration
to NGN
E-mail Web TV (1seg)
Multi-media
Revenue
source
TV phone Camera Game
Start
terminal
IP broadband
LTE
45M
byof3G
Promotion
voice and IP infrastructure
Customer-base
2001
Start of 3G
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(C)2009NTT
Summary
NTT’s history and plan for the NGN
z Since NTT first provided an IP network service for Internet
access, NTT has promoted optical access and triple play
services.
z To meet its timetable to get a 9M optical access subscriber
base and establish revenue source from triple play, NTT has
just started NGN commercial service.
z The NGN started in limited areas such as Tokyo and Osaka
as an upgrade of the existing IP network service.
z The NGN will cover a wide area in short time frame and
create new services aimed at new business areas.
NTT’s approach to launching the NGN
z NTT’s approach is based on synchronizing the development
of services and infrastructure.
z NTT’s subscriber base and revenue source will be migrated
from IP broadband to the NGN
22
(C)2009NTT
Thank you
23
(C)2009NTT