Thinking long term,
managing short term
Strategies Seminar
Technology Update
Scott Smith, GVNW
March 21, 2013
www.gvnw.com
Thinking long term,
managing short term
Technology Topics
• Network Trends
– What are customers asking for now?
– What will customers be asking for in the
future?
– What will the FCC require you to provide to
retain support?
• What should your network evolution plan
strive for?
• How u goin 2 pay 4 it?
www.gvnw.com
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Thinking long term,
managing short term
Network Trends
• What will users pay for?
• Customers do not care how they are connected,
but want to always be connected
– Could be DSL, FTTH, Cable, LTE, 3G, Wifi etc
• Customers want all their devices connected
– Smartphones, tablets, laptops, TV’s, OTT devices,
automobiles, medical devices, home monitoring
www.gvnw.com
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Thinking long term,
managing short term
NTCA’s New Edge 3/18/13
• Nielsen data released last week reveals
that five-million households have replaced
TVs with tablets, computers and other
devices. This represents a two-million
household increase since 2007…
• Content and the ability to bend time are
attractions to online streaming or
downloads…
www.gvnw.com
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Thinking long term,
managing short term
Network Trends
• Interconnectability will need to be easy,
transparent and cost effective
– Devices need to select best connection methods
without user intervention
• Devices will need to talk across platforms
– Landline, cell phone, PC, laptop, tablet etc.
www.gvnw.com
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Thinking long term,
managing short term
NY Times 3/20/13--Home Automation
• According to the Remodeling Futures program, as of
2011, nearly half of all United States home improvement
spending came from homeowners over 55.
• “If Grandma has a system where she can see who is at
the front door via video, can unlock the front door
remotely, can control her heating, cooling, window
shades and lighting from a tablet, that is an enormous
step for safety and independence”
www.gvnw.com
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Thinking long term,
managing short term
Applications are cross-platform
enabled
• Apps are available on many platforms:
– Facebook, Mapping, social media, news,
email, iTunes…
– The “Cloud” is enabling the sharing of data
and applications across multiple platforms
– Devices run most all these apps
• Devices will need to be enabled via lowest cost
access medium the user has available
www.gvnw.com
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Thinking long term,
managing short term
Carrier Value Add
• Your biggest value-add is your access options
– Google, the cloud, Facebook, Skype, IP Voice, Netflix, all need
your pipe to work
– Fatter pipe requirements are a continuing must have as end user
habits and expectations change
•
•
•
•
Netflix, OTT video
Video conferencing
Web browsing
Multiple devices within the home all required bandwidth (tablets,
smartphones, wifi, TV’s, home monitoring..)
Your pipe is the highway all these devices travel most on!
www.gvnw.com
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Thinking long term,
managing short term
Network
Commonalities/Realities
• End users will always want more bandwidth as their user
habits change
• Internet Protocol (IP) is the underlying/common thread to
all current and future business models
• TDM is going to die
• IMS (IP Multimedia Subsystem) Platforms and soft
switch capabilities allow carriers to provide most IP
based services using a single platform
www.gvnw.com
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Thinking long term,
managing short term
Migrating to IP-Based Network
• TDM is going to die.
– FCC has a working group set up to study how to endof-life the TDM network
– All major carriers have indicated a future away from
TDM based networks
– Ethernet has been shown to cost a fraction of what
TDM costs today for a given amount of bandwidth
– Ethernet is based on IP, so it has some natural
synergies
www.gvnw.com
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Thinking long term,
managing short term
Migrating to IP-Based Network
– IP Voice services are the direction most large carriers
are heading
• Single IP network can handle both voice and data needs. No
need for a separate TDM network
• QoS can be introduced to handle voice clarity
• VoLTE will further drive the nail into the TDM based voice
coffin
• IP Based platforms enable cross device access
and applications to be enabled, opening service
opportunities
www.gvnw.com
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Thinking long term,
managing short term
Migrating to IP Based Networks with fat pipe
capabilities– Some issues
• Can be a gargantuan task of not only moving from
current infrastructure to one requiring fatter pipes, but
also upgrading to an IP based platform as well
(especially for IP voice and away from TDM based voice)
• Current recovery mechanisms do not incent RLEC to
move to IP -much of your funding is based on TDM
technology requirements
• FCC Orders are unclear about what they will pay for
beyond 4/1Mbps requirements for the last mile
• Regulated vs Non-regulated services are still
ambiguous. Does VoIP stay a regulated services, or
does it become an information service?
www.gvnw.com
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Thinking long term,
managing short term
Migrating to IP Based Networks with fat pipe
capabilities– Some issues
• ILEC’s have obligations to legacy rules
• Current FCC rules are circuit switch based – will they
strap us with unfunded mandates? Regulations should
be on service delivery, not the technology it is delivered
on
• Still limited DSL Only (Naked DSL) tariffs or offerings
• No IP-IP Interconnection Rules – Bill and Keep is what
the FCC would love
• Do you have a financial incentive today to stay with
TDM?
• Middle mile recovery still undecided
www.gvnw.com
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Thinking long term,
managing short term
Network Recommendations
• You must be able to provide at least 4/1Mbps if
a customer reasonably asks for it
• Any new planning should focus on IP based
platforms
• Sharing platforms with “like” companies can
have some real advantages (sharing in IMS
platform, or soft switch can reduce costs)
www.gvnw.com
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Thinking long term,
managing short term
Network Recommendations
• The robustness of your pipe is your biggest
value add. Any “other” business offering
legitimacy will need to be business modeled on
a carrier by carrier basis
• Competition is not standing still. You will not be
able to capture all users in your area, so plan
accordingly
• 5 Year plans should include plans to migrate
from TDM to IP Based platforms
www.gvnw.com
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