21st Century Network (21CN) FORUM ON NEXT GENERATION STANDARDIZATION, Colombo, Sri Lanka, 7-10 April 2009. Nigel K J Dye Director Business Development Global Telecom Markets BT Global Services Forward-looking statements – caution advised ● Certain statements in this presentation are forward-looking and are made in reliance on the safe harbour provisions of the US Private Securities Litigation Reform Act of 1995. These statements include, without limitation, those concerning: transformation of BT's networks, expected cost reductions and growing cash savings from 21CN; benefits to customers and industry of the 21CN programme, and convergence; anticipated investment in 21CN; and timescales for implementation of 21CN. ● Although BT believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. Because these statements involve risks and uncertainties, actual results may differ materially from those expressed or implied by these forward-looking statements. ● Factors that could cause differences between actual results and those implied by the forwardlooking statements include, but are not limited to: material adverse changes in economic and financial markets conditions in the markets served by BT; future regulatory actions and conditions in BT’s operating areas; technological innovations; developments in the convergence of technologies; the anticipated benefits and advantages of new technologies, products and services, including broadband, not being realised; and general financial market conditions affecting BT's performance. BT undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. ● Statements made in this presentation do not necessarily reflect the current strategy and policy of BT. This is an open conference where the individual presenter has been requested to provide personal views based on his experience some of which may not necessarily be from BT. © British Telecommunications plc 2009. All rights reserved. ITU CTO FORUM ON NGN Colombo, Sri Lanka, 7-10 April 2009. For Discussion purpose only AGENDA – 3 Threads 1 2 3 Why bother with NGN ? Scene setting, Challenges to consider ….: 21CN Overview: What is it ? How does it work ? What can you get ? 21CN How do we measure up ? Lessons Learned ITU CTO FORUM ON NGN Colombo, Sri Lanka, 7-10 April 2009. For Discussion purpose only Tying the Threads together Q+A Why NGN ? :Our Mutual concern the IP change on Operators…. Voice no longer a cash cow The barrier for new entrants is practically removed Price War, Regulation Bundling, Flat Rate…. The Traditional Business Model becomes increasingly dysfunctional Globalisation - Supply Chain - Demand chain Traditional markets New markets Digitisation - Media - Convergence The value proposition is clouded through disruption Virtualisation - Networks NGN - Grid / Cloud Computing - Geography Web 2.0 / SOA … Value But new value opportunities exist - Service Architectures What is a Telco ?? - Collaboration. Time Utility 0110.. 011001001 ‘Bit’ Pipe Provider SCALE ITU CTO FORUM ON NGN Colombo, Sri Lanka, 7-10 April 2009. For Discussion purpose only Vs. 21CN Next Generation Service Provider KNOWLEDGE What’s Driving NGN Transformation @BT ? The Need for a Better Cost Structure and Revenue Streams POTS is loosing significance Price convergence Need for Flexibility Service Portfolio ICTICT Revenue Services $ OPEX / CAPEX Regulation 21C N Invest to Grow Expenses Sustainability ( CO2 Energy ) Invest to Save Customer Base …. Time Be SMARTER than the competition…. ITU CTO FORUM ON NGN Colombo, Sri Lanka, 7-10 April 2009. For Discussion purpose only NGN is NOT only Technology In the past BT GS has followed a “traditional merchant” model Now we need to adapt our business model to become a “business operator” Innovation Integrated SOA Part of the Process ITU CTO FORUM ON NGN Colombo, Sri Lanka, 7-10 April 2009. For Discussion purpose only 21CN - Three Key Points We will empower the customer with control, choice and flexibility like never before and offer them communications from anywhere to any device We’ll make exciting new services available for customers faster than has been possible before We’re reducing our costs – we’ll make growing cash cost savings which are expected to amount to £1 billion per annum Speed to Market Customer Experience Customer experience and empowerme nt Cost Efficiency 21CN transformation 2006 Clearly separated architecture Converged architecture & services ITU CTO FORUM ON NGN Colombo, Sri Lanka, 7-10 April 2009. For Discussion purpose only 21CN –driving Where are the cost savings ? a radical simplification Multi-service access Copper Converged Core PSTN PSTN Class 5 Call Server K Stream Leased lines Copper DSL MSAN PDH access Fibre & Copper ATM IP-MPLS-WDM Content Fibre Wireless SDH VC-12 SDH access SDH VC-4 End User End User PDH access ~ 5.5k sites -5.5k sites ~ 2k sites WWW -100 sites PDH ~ 1k sites ITU CTO FORUM ON NGN Colombo, Sri Lanka, 7-10 April 2009. For Discussion purpose only ~ 400k sites ~ 100k sites ~ 15k sites IP ISP A global 21CN Open Layered platform for Open Innovation Communities Personalisation On-Demand Customer ‘stickiness' Self-Service Collaboration End customer created services New business models 3rd party services [SDK] BT services Common software building blocks Global network and computing Servers Storage ConceptLead-toto-market cash ITU CTO FORUM ON NGN Colombo, Sri Lanka, 7-10 April 2009. For Discussion purpose only Converged bandwidth Trouble-toresolve 21CN Service Creation Framework – Common Capabilities Applying the development approach from IT software industry to telecoms Creating series of reusable, common capabilities First 9 components launched 2004/5 17 new products or enhancements based on these components launched 2005/6 Increase automation and accelerate time to market for new services Help contribute cost reduction ITU CTO FORUM ON NGN Colombo, Sri Lanka, 7-10 April 2009. For Discussion purpose only We are changing … how we build products ….. Consumer Business Carrier Corporates Customers Common customer experience by segment Common terms & conditions by segment Common commercial policies by segment Switching Trunk Access Multiple stove-piped products Overlap and duplication Hosted Applications (Many) Core IP Infrastructure CPE Multi-Service Access Public Voice Broad 2G Private Legacy -band Mobile Circuits WAN Customer Premises Equipment/Edge Applications …. And the infrastructure to support them MPLS Class of Service (CoS) Enabling Converged Networks Voice/IP Telephony Applications Application Bandwidth Availability IP Video Applications Voice Video Application Prioritization Enables Dynamic Bandwidth Sharing Data Applications (i.e. SAP) D1 Data Applications (i.e. E-mail) D2 Data Applications (i.e. Internet) D3 Data Applications ITU CTO FORUM ON NGN Colombo, Sri Lanka, 7-10 April 2009. For Discussion purpose only D4 Multi Media All IP Bandwidth is available to data classes Data IP Bandwidth 21CN Application Intelligence Controlling Network Resources Intelligent Infrastructure ITU CTO FORUM ON NGN Colombo, Sri Lanka, 7-10 April 2009. For Discussion purpose only 21CN Next generation broadband Exchanges Homes/Businesses Copper Copper Up to 24Mbit/s Fibre to the cabinet Up to 40Mbit/s Fibre Copper with improved upstream rates Cabinet Fibre to the premise Up to 100Mbit/s + Fibre with improved upstream rates Mobile Mobile Up to 7.2Mbit/s ITU CTO FORUM ON NGN Colombo, Sri Lanka, 7-10 April 2009. For Discussion purpose only Mobile Mobile Network 21CN Enabling business agility with Etherflow The next generation of Ethernet services Benefits of Etherflow - Flexible and scalable - High throughput and low latency - Supports multiple topologies - Maintain end-to-end control of IP - Support for non-IP applications - High degree of user control - Reduce total cost of ownership A wide range of features in one single product, enabling customers to choose and create their own solution ITU CTO FORUM ON NGN Colombo, Sri Lanka, 7-10 April 2009. For Discussion purpose only 21CN Virtual Data Centre Scalable and sustainable data centre solutions Customer Portal Customer controls environment automatically (applications & security, provisioning) A new concept in data centre services Reliance on the physical hardware is removed and replaced with emphasis on service Services include virtual servers, virtual infrastructure, flexible networks and storage shared across multiple locations with security separation maintained ITU CTO FORUM ON NGN Colombo, Sri Lanka, 7-10 April 2009. For Discussion purpose only 21CN - Progress to date BT’s 21CN UK core infrastructure is 100% complete BT’s 21CN global platform is 100% complete End users receiving next generation services including Wholesale Broadband Connect and Ethernet ▬ Next generation broadband introduced in April 2008 from exchanges serving over one million homes - rollout continues ▬ 21CN Ethernet available to ~20% of UK business market – rollout continues ▬ BT Fusion, Next Generation Contact Centre, Unified Communications + Collaboration, First end users receiving ‘super-fast broadband’ over access fibre Substantial cost savings already achieved with further to come Sustainability – Conferencing alone saves £ 230m and 97,000 tonnes of CO2 ITU CTO FORUM ON NGN Colombo, Sri Lanka, 7-10 April 2009. For Discussion purpose only 21CN - Some Lessons Learned Test and trial – the key to successful deployment The world’s most advanced integrated, multi-vendor testing capability available to the whole industry We’re integrating 30 completely new major network elements from 9 world class vendors in our labs – this is £75m of equipment for testing purposes alone A rigorous testing programme is underway. This includes: ▬ Voice transformation trial ▬ Strategic solution lab testing, Technology proving ▬ Exchange migration process testing ▬ Integrated system and process testing ▬ End-to-end testing involving a range of communications providers and customer equipment compatibility testing PLANNING & IMPLEMENTATION: ▬ Develop an “learning” team that is focused on NGN ▬ Be prepared to plan and re-plan the NGN ▬ Keep revisiting the business case to keep it on track ▬ Get an excellent view of inventory ▬ Understand how costs are allocated in the process early on ITU CTO FORUM ON NGN Colombo, Sri Lanka, 7-10 April 2009. For Discussion purpose only 21CN into the future – business process utility Guaranteeing the performance of application centric infrastructure Monitor and manage business policy thresholds Deliver infrastructure against contracted SLA’s Provide real-time management information Infrastruture As a Service Software As a Service ITU CTO FORUM ON NGN Colombo, Sri Lanka, 7-10 April 2009. For Discussion purpose only Bus. Process As a Service Tying the threads together .. 1 Telco’s all have major challenges ahead, NGN, when used “smartly” is now becoming a “must have” Telco’s can access new value streams, increase efficiency and better serve their customers 2 Building “open” platforms has many benefits … The open platform is based on standards NGN is not only technology, the business model is an important end point of the NGN. The Service Layer is where our customers see Value, Consequently NGOSS is essential 3 The NGN future is a wide range of Services based on converged technology and business models Customer Interface ( Flexible) – Speed to Market Price (best of breed) based on improved efficiency and a lower cost base ITU CTO FORUM ON NGN Colombo, Sri Lanka, 7-10 April 2009. For Discussion purpose only Thank you for your time and Attention ………and good luck! Lets Talk …. .. nigel.dye@bt.com +49 176 10730765 ITU CTO FORUM ON NGN Colombo, Sri Lanka, 7-10 April 2009. For Discussion purpose only