NGNs – Network Nirvana? David Goldie, Chairman Opal, the B2B division of The TalkTalk Group, brings the UK’s largest Next Generation Network to over 400 business partners. Slide 2 This document is uncontrolled if printed or saved to a non-authorised site. What makes us different? Our network We own the most connected Next Generation Network (NGN) in the UK Our scale Over 4 million broadband lines Over 300,000 UK business sites Our commitment to Channel Partners Opal combined with Tiscali Business Services lead the market in NGN based voice and data services for partners and resellers Slide 3 This document is uncontrolled if printed or saved to a non-authorised site. Is the NGN a “network nirvana”? A National NGN, operated efficiently, is the enabler of fundamental structural change in the telecoms market. Slide 4 This document is uncontrolled if printed or saved to a non-authorised site. What is an NGN? Unified multi-service QOS enabled network End to end IP Separation of conveyance from network intelligence and applications NGN means you can build new services without changing network infrastructure NGN accelerates innovation NGN has lower operating cost than legacy networks Slide 5 This document is uncontrolled if printed or saved to a non-authorised site. Applications Network Intelligence Conveyance Spend on network services is changing Overall spend on network services is declining UK fixed network spend Decline in PSTN telephony will accelerate Growth Areas Ethernet & IP networking VOIP Internet-related services (including data centre) All Driven by NGN Availability Slide 6 This document is uncontrolled if printed or saved to a non-authorised site. Source: Gartner 2008 Managed services and apps drive growth UK business managed services spend Value migrates to managed services and applications where value-add is more sustainable Slide 7 This document is uncontrolled if printed or saved to a non-authorised site. Source: Forrester 2008 Ethernet over NGN is the BIG STORY? Ethernet is the established standard for network interconnectivity, at work and in the home It’s a disruptive technology, replacing Frame Relay ATM, E1, Token ring etc. This is another telecoms inflection point (connectivity) It can be delivered across NGNs with little incremental capex It’s not distant dependant and it’s scalable It’s end to end standards based, meaning compatibility Slide 8 This document is uncontrolled if printed or saved to a non-authorised site. Ethernet growth in higher speeds UK Ethernet connections Growth in Ethernet connections are fuelled by demand for higher speeds and by leased line substitution Slide 9 This document is uncontrolled if printed or saved to a non-authorised site. Source: Ovum 2009 Not all NGNs are created equal It’s a scale game – why? ADSL service quality is a function of distance from customer premises to the network. Ethernet fibre costs are a function of distance from customer premises to the network. The success of TalkTalk means that we have: A deeply built access network - 1,695 exchanges High capacity core and transit network to the edge – with massive unused capacity Slide 10 This document is uncontrolled if printed or saved to a non-authorised site. It’s all about scale… Opal Network Currently has 1750 NGN enabled Exchanges This is 3 times as many as BT This is twice as many as C&W The Network currently carries 1.5 Billion minutes of VOIP traffic per month. There are 4 Million data customers generating 150 Giga bits per second of public internet IP traffic Slide 11 This document is uncontrolled if printed or saved to a non-authorised site. Index DWDM Nodes (Optical connectors) Core Network 800Gb 400Gb 10Gb Collector Nodes Unbundled Exchanges Covers over 80% of businesses – 2.1 million business premises Commitment to increase to 2,000 exchanges for both MPF and SMPF by end 2010 85% coverage of businesses Ethernet termination at 1,300 exchanges in 2010 Fig 3 This document is uncontrolled if printed or saved to a non-authorised site. Opal’s Ethernet access – simple, low pricing Opal annual rental BT annual rental Product (using local access solution) (Assumed local access solution) Opal discount from BTW’s published pricing 10Mbps to IPVPN £6,000 £6,355 - £10,876* 13.5% - 49.4% 100Mbps to IPVPN £12,000 £11,982 - £22,745* 20.7% - 58.2% *BT Wholesale pricing will be dependent upon the number of connections on the Hub that must be purchased as part of the BT Wholesale solution and the associated discount Slide 13 This document is uncontrolled if printed or saved to a non-authorised site. Other national NGNs BT 21CN Very good for people in South Wales BT has to run 16 parallel legacy networks due to the complexity and cost of migration to 21CN – a sub-optimal outcome in terms of efficiency and multiple-service delivery Long way behind original schedule C&W Lack the scale to justify density of POPs, 802 vs Opal’s 1750* Slide 14 This document is uncontrolled if printed or saved to a non-authorised site. Opal’s comprehensive NGN suite ADSL MPF line rental & calls Managed Service and L2TP QOS including prioritised B2B & Voice packets Carrier Ethernet *NEW* UK’s Leading Voice Application Suite Supported by dedicated UK based business support specialists Award winning - Cisco Customer Service Excellence Award 2009 Slide 15 This document is uncontrolled if printed or saved to a non-authorised site. NGN based services – challenge or opportunity? Voice specialists ISPs, systems integrators & VARs Managed MPF ADSL SIP trunks over ADSL Ethernet replacement of ISDN 30 Inbound voice applications MPF / SMPF ADSL Managed internet and L2TP service IP-VPN Ethernet access Opal offer training and assistance in the transition to data services for all partners Supported by dedicated UK based business support specialists Slide 16 This document is uncontrolled if printed or saved to a non-authorised site. Its only Nirvana if you choose the right partner to take you from TDM to NGN! We have one of the best account management support infrastructures and support networks in the industry including: Three tier account management Accredited workshop training On site support for go-live Plus ongoing support from Provisioning team Service relationship managers In-life support team Reseller & technical support Incident management Billing support Slide 17 This document is uncontrolled if printed or saved to a non-authorised site. Over 15 years Over 800 supporting the needs of our partners professionals with award-winning passion for serving Conclusion TalkTalk Group will continue to invest in the UK’s largest NGN Opal are committed to market leadership in Ethernet access products Voice as an application over NGN based ADSL and Ethernet is the future We are totally committed to the Partner Channel Slide 18 This document is uncontrolled if printed or saved to a non-authorised site. Thank you Slide 19 This document is uncontrolled if printed or saved to a non-authorised site.