VoIP, NGN and IMS in the Telco Market Leipzig, 26th of May 2009 Copyright © 2009 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. Agenda • Telco Market Overview • Voice Over IP • Next Generation Network • IP Multimedia Subsystem • Question & Answers Copyright © 2009 Accenture All Rights Reserved. 2 Markus Beckmann, Accenture Areas of Expertise Markus Beckmann Senior Manager Accenture Maximilianstraße 35 D–80539 München Personal Background Married, one child, living in Munich Education University Ulm: Electrical Engineering with focus on Information Technology, Communications Technology Diploma Dipl.-Ing. Elektrotechnik in September 2000 Professional Career With Accenture since November 2000 Munich office (before Frankfurt) Communications & High Tech Network Practice Functional Know-How Network Technology New Service Development NW Business Process Outsourcing Industry Skills Wireless Communication Wireline Communication Cable Service Provider Accenture Project Experience German Fix-Mobile Operator Project Manager for Fix-Mobile Network projects DSL Business Launch Technical Product Manager IT Requirement Mgmt & Functional Design Engineer HanseNet Alice DSL Business Launch in Germany Telecom Italia Pre-IMS Service Control Platform Development ish / KabelNRW Service Assurance for VoIP over HFC Agenda • Telco Market Overview • Voice Over IP • Next Generation Network • IP Multimedia Subsystem • Question & Answers Copyright © 2009 Accenture All Rights Reserved. 4 Sharp increase of IP traffic, which is forecasted to rise in Western Europe by 52% per annum, largely driven by video Western Europe IP traffic (Petabytes per month)(1) 8.000 7.000 Key Points 52% CAGR 2007 – 11 Mobile data 6.000 5.000 Consumer internet 4.000 3.000 2.000 Business IP traffic IP traffic growth will be driven primarily by Consumer IP Video (non-internet), which is forecast to grow at 97% CAGR 2007-11 i.e. almost doubling each year Consumer IP Video (non-internet). See note Mobile data is forecast to grow at 122% CAGR from 2007-11, but still is forecast to represent only 5% of total IP traffic in 2011 1.000 0 2005 2006 2007 2008 2009 2010 2011 Global Consumer Internet Traffic 2005–2011(1) (Terabytes per month) 39% CAGR A Standard webpage is about ~100kb data whereas a 10 minute Youtube clip is approx 5MB (3) 12,289,906 6,580,043 P2P 4,801,670 Gaming 3,257,572 2,153,473 1,564,822 Video Comms VoIP Internet Video to TV Internet Video to PC 2005 2006 2007 2008 Approx 8 hours of video are uploaded onto Youtube every minute (4) Web, e-mail, file transfer 8,783,840 Copyright © 2009 Accenture All Rights Reserved. Today, Youtube accounts for ~20% of all UK internet traffic (2) 2009 2010 Source: (1) Cisco Systems 2008 “The Exabyte Era”. “Consumer IP Video (noninternet)” refers to IP traffic generated by traditional commercial TV services e.g. IPTV, Digital Cable. This traffic remains within the footprint of a single service provider, so it is considered separately from general Internet traffic. (2) UK ISPs, BBC (3) Vodafone UK 2007 (4) AT&T April 2008 2011 Note: 1 Petabyte = 1000 Terabytes; 1 Terabyte = 1000 Gigabytes 5 Telcos continue to face cost pressure and relatively little progress has been made on reducing operating costs Total Revenues, Opex of ~40 European Mobile Operators Revenue, Opex (€bn) 160 140 120 100 80 Opex 64% of revenues Opex 61% of revenues Opex 60% of revenues 60 40 20 0 2002 Total Revenue Total OPEX Operators have kept opex at a similar proportion of revenues, despite lower top line prices i.e. cost reductions have not occurred 2003 2004 2005 2006 2007 2008E 2009E 2010E Key points Revenues are forecast to rise by ~4% CAGR 2002-2010E Opex is forecast to grow 5% CAGR 2002-10E Source: Merrill Lynch, 2007; Accenture Analysis 2008 Copyright © 2009 Accenture All Rights Reserved. 6 The Industry Restructure Wave introduces new technologies such as VoIP, NGN, IMS Situation Traffic Volume Operator Costs – current model The Perfect Storm Operator Revenues # Customers Data Dominates Operators are adopting flat rate pricing and much of the new service revenues are going to other players This is already an increasingly important issue in fixed networks and soon to be important in mobile Operator revenue & traffic decoupled Voice Dominates A “Perfect Storm” for operators, as revenue and cost lines take different trajectories The increasing popularity of video services is set to accelerate this e.g. Ofcom estimate £830m (> €1bn) additional UK investment required by ISPs to deal with demand caused by video services Technology improvements are lowering the cost per MB, but are being deployed slower than the traffic volumes are rising Time Copyright © 2009 Accenture All Rights Reserved. 7 Agenda • Telco Market Overview • Voice Over IP • Next Generation Network • IP Multimedia Subsystem • Question & Answers • Accenture Overview Copyright © 2009 Accenture All Rights Reserved. 8 Definition – Voice over IP (VoIP) Voice over Internet Protocol (VoIP) • VoIP is a general term for a family of transmission technologies for delivery of voice communications over IP networks such as the Internet or other packet-switched networks. • VoIP systems usually interface with the traditional public switched telephone network (PSTN) to allow for transparent phone communications worldwide. • VoIP systems employ session control protocols to control the set-up and tear-down of calls as well as audio codecs which encode speech allowing transmission over an IP network as digital audio via an audio stream. VoIP Packets Copyright © 2009 Accenture All Rights Reserved. IP Packet-Switched Network VoIP Packets 9 VoIP – Usage Cases (1/3) • VoIP on Application Level in Residential Scenario – VoIP is used by the end user, e.g. through Softphones (PC), Desk-/Hardphones (Grandstream, snom,…), or IADs (FritzBox, etc.). Connection to the Internet is via broadband ISP (DSL, Cable). – The VoIP Service can be offered by the broadband ISP or a Third Party Service Provider. The VoIP Service Provider usually inter-connects to the traditional telefone network (PSTN/PLMNs). – In a similar way this can be used by companies for telephone calls. This is usually combined with a PBX. vonage.com Copyright © 2009 Accenture All Rights Reserved. 10 VoIP – Usage Cases (2/3) • VoIP on Application Level in Business Scenario at Enterprises – VoIP is used by the end user, e.g. through Softphones (MS Office Communicator) or Deskphones (Cisco, Siemens,…), and is connected via IP PBX. – The VoIP traffic is routed on the enterprise's packet switched LAN. – The IP PBX is connected to the PSTN or an IP WAN (e.g. Internet). Copyright © 2009 Accenture All Rights Reserved. 11 VoIP – Usage Cases (3/3) • VoIP is used on the Backbone Transport level – VoIP is used by the operators for transport on the (long distance) Backbone. – While end user equipment is legacy (none IP) the VoIP is terminated within the operators Network. The “last mile” is done on legacy circuit switched access networks. – Common case for both fix and mobile operators. Copyright © 2009 Accenture All Rights Reserved. 12 Agenda • Telco Market Overview • Voice Over IP • Next Generation Network • IP Multimedia Subsystem • Question & Answers • Accenture Overview Copyright © 2009 Accenture All Rights Reserved. 13 Definition – Next Generation Network (NGN) Fundamental aspects characterize the NGN: • Packet-based transfer • Separation of control functions among bearer capabilities, call/session, and application/ service • Decoupling of service provision from network, and provision of open interfaces • Support for a wide range of services, applications and mechanisms based on service building blocks (including real time/ streaming/ non-real time services and multimedia) • Broadband capabilities with end-to-end QoS and transparency • Interworking with legacy networks via open interfaces • Generalized mobility, i.e. independency from type of access • Converged services between Fixed/Mobile • Independence of service-related functions from underlying transport technologies Copyright © 2009 Accenture All Rights Reserved. 14 Next Generation Network (NGN) Benefits Benefits to the Telco Industry One network, multiple access technology where fewer network elements: – Lower operating cost: space requirement, power consumption, maintenance staff and service windows are reduced. Training of staff becomes simplified. – Increase network reliability because of less equipment – Improve Operations (routing & translations, engineering & capacity planning), operational efficiency, flexibility and scalability Benefits to the Users – Simplified life style with single bill and account - Flexibility to use services without having to choose fixed line, mobile, BB or ISP suppliers – Single device in the future with consistent personalization – Consistent services across all types of access Copyright © 2009 Accenture All Rights Reserved. 15 VoIP and NGN Key Elements Softswitches • Softswitch is a generic term that refers to devices that perform call control and signaling functions in next-generation networks (NGNs) and, increasingly, IP multimedia subsystem (IMS) carrier network domains. • Softswitches are most often deployed in conjunction with media gateways as combined replacements for TDM-based central office switches. Media gateways (MGW) • Media gateways are a class of products generally used to perform basic IP/TDM conversion under the control of a softswitch or media gateway controller. • Softswitches typically control media gateways via device protocols such as Media Gateway Control Protocol (MGCP) or H.248, with the latter predominating in IMS environments. • Media gateway functionality is related to product scalability, which is characterized by the number of ports or subscribers supported. Copyright © 2009 Accenture All Rights Reserved. 16 NGN Network Architecture Legacy Copyright © 2009 Accenture All Rights Reserved. Next Generation 17 NGN Network Architecture – Target Architecture Copyright © 2009 Accenture All Rights Reserved. 18 NGN Layered Architecture Model Copyright © 2009 Accenture All Rights Reserved. 19 Agenda • Telco Market Overview • Voice Over IP • Next Generation Network • IP Multimedia Subsystem • Question & Answers • Accenture Overview Copyright © 2009 Accenture All Rights Reserved. 20 Definition – IP Multimedia Subsystem (IMS) IP Multimedia Subsystem (IMS): • IMS is a SIP-based core network architecture in which the transport, control, and services layers are disaggregated. • The intent is to allow service providers to rapidly and cost-effectively develop real-time multimedia applications and maintain clear control over services on their networks. • It is designed to be "access independent" and work in all major broadband environments. • In the pre-IMS world, services are specified and supported by a single logical node, performing specialized features for the service. • With the introduction of the IMS architecture, many functions can be reused for fast service creation and delivery. IMS services are hosted by Application Servers. • A single Application Server may host multiple services – for example, telephony and messaging. Collocation of multiple services has significant advantages, especially with regard to the loading of IMS core network nodes. Copyright © 2009 Accenture All Rights Reserved. 21 Agenda • Telco Market Overview • Voice Over IP • Next Generation Network • IP Multimedia Subsystem • Question & Answers • Accenture Overview Copyright © 2009 Accenture All Rights Reserved. 22 Q&A / Discussion Copyright © 2009 Accenture All Rights Reserved. 23 Agenda • Telco Market Overview • Voice Over IP • Next Generation Network • IP Multimedia Subsystem • Question & Answers • Accenture Overview Copyright © 2009 Accenture All Rights Reserved. 24 Accenture is a global company … Our services comprise management consulting, technology and outsourcing. 23,4 Facts • Founded in 1989 • Approx. 186.000 employees worldwide • More than 150 offices in 49 countries • 23.4 billion US$ revenue as of end of Aug. 2008 19,70 16,65 15,55 13,67 11,44 11,57 11,82 Clients • Top companies including 91 of the Fortune Global 100 and two-thirds of the Fortune Global 500 9,55 9,75 8,22 6,28 4,94 Cooperation • More than 100 alliances and partnerships with global market leaders (e.g. Microsoft, Oracle, SAP, Cisco, Alcatel-Lucent) 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Accenture revenues in US$ since 1996 Copyright © 2009 Accenture All Rights Reserved. 25 … and a strong local player Geographical Unit ASG • Austria (A) • Switzerland (S) • Germany (G) Employees • Over 5.000 Hamburg Berlin Düsseldorf Bonn Clients • Leaders in their industries Frankfurt Nürnberg Stuttgart München Wien Zürich Copyright © 2009 Accenture All Rights Reserved. 26 Accenture’s Network Practice has deep Communications and High Tech industry focus Accenture Network Practice provides consulting professionals delivering services and solutions to the local and worlds leading Telco clients. Comm. & High Tech Financial Services Public Service Products Resources Management Consulting System Integration & Technology Consulting Outsourcing Copyright © 2009 Accenture All Rights Reserved. 27 Accenture Network Practice key facts Accenture Network Practice key facts The Network Practice within Accenture provides best practices and expertise to the leading Telecom and Service Providers across the globe. Accenture Network Practice NON-EXHAUSTIVE Part of the Accenture Communications and High Tech operating group helps wireless, wireline and cable clients achieve high performance with: Over 3000 network consultants worldwide A truly global organization with long history and strong financial stability Network Innovation Centers (Sophia Antipolis, Rome, Dallas) Near-shore and off-shore delivery and outsourcing centers. Sample Clients Accenture Network Services and Solutions Are advanced, innovative, proven best practices and assets that allow introduction of new products and services and operational costs reduction Cover business and product development, network engineering aspects as well as telecom service design, delivery, integration and operations. Copyright © 2009 Accenture All Rights Reserved. 28 Campus Team Leipzig – Wer sind wir? Marko Kunze - Teamlead Campusteam Leipzig - VWL an der TU Chemnitz - bei Accenture seit 08.2007 Julia Bernhardt Silke von der Bruck - Ansprechpartner Prof. Alt - WiInf an der Uni Leipzig - bei Accenture seit 12.2006 - Organisation Stammtisch - WiMat an der Uni Leipzig - bei Accenture seit 04.2008 Christoph Kurz Knut Böhmchen - Ansprechpartner FSR WiWi, Workshop - WiInf an der TU Dresden - bei Accenture seit 11.2007 - Organisation WiWi - BWL an der Uni Leipzig - bei Accenture seit 09.2007 Jan Hellich - Ansprechpartner FSR Inf. - Inf. an der Uni Leipzig - bei Accenture seit 05.2008 Accenture Soft Skill Workshop Campus Team Leipzig Veranstaltungen Stammtisch Gastvorlesung Workshop Campus Challenge Veranstaltungen in Leipzig 28.5.2009 Stammtisch Mai Juni 26.5.2009 Gastvorlesung VoIP – Voice over IP Kontaktadresse für alle Veranstaltungen: marko.kunze@accenture.com 12.6.2009 Softskill Workshop Juli 8.6.2009 Gastvorlesung Elektronische Märkte Accenture and Campus Team contact information Visit the following links to gain more information about Accenture and Campus Team activities: http://www.entdecke-accenture.com http://careers3.accenture.com/ Careers/ASG/IhrEinstieg/Studenten/Veranstaltungen/ Campus Team contact: Marko Kunze marko.kunze@accenture.com Copyright © 2009 Accenture All Rights Reserved. 32