of the Tariff Group for Africa (TAF) (TAF) of the Tariff Group for - - PowerPoint PPT Presentation

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of the Tariff Group for Africa (TAF) (TAF) of the Tariff Group for - - PowerPoint PPT Presentation

ITU/BDT Regional ITU/BDT Regional Seminar Seminar on on Costs and Tariffs for Member Countries Costs and Tariffs for Member Countries of the Tariff Group for Africa (TAF) (TAF) of the Tariff Group for Africa Midrand, South Africa, , South


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SLIDE 1

June 2005

ITU/BDT Migration towards NGN - O.G.S.

  • slide 1

ITU/BDT ITU/BDT Regional Regional Seminar Seminar on

  • n

Costs and Tariffs for Member Countries Costs and Tariffs for Member Countries

  • f the Tariff Group for Africa
  • f the Tariff Group for Africa (TAF)

(TAF)

Midrand Midrand, South Africa, , South Africa, 28 June 28 June-

  • 1 July 2005

1 July 2005

Migration towards NGN

Oscar González Soto ITU Consultant Expert Strategic Planning and Assessment

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June 2005

ITU/BDT Migration towards NGN - O.G.S.

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Migration Migration towards towards NGN NGN Content Content

  • Key factors for the evolution towards NGN
  • Services and revenue motivations.
  • Network architecture consolidation at transit, local and access levels
  • Topology and migration
  • Network optimization based on planning methods and tools
  • Support to Network Design
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June 2005

ITU/BDT Migration towards NGN - O.G.S.

  • slide 3

Network Architecture Network Architecture towards towards NGN

NGN

Key Factors: Motivation Key Factors: Motivation

  • New services and revenue increase with multimedia services:
  • Compensate voice revenue reduction and increase BB related

business

  • Cost reductions by sharing network infrastructure and systems
  • Savings are a function of network scenario, equipment

modernization status and customers grow speed

  • Simplification of O&M, thus lowering OPEX
  • Integrated operation platforms, maintenance and training
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SLIDE 4

June 2005

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Network Architecture Network Architecture towards towards NGN NGN Key Factors: Issues to care Key Factors: Issues to care

  • Ensure service and business continuity for existing customers.
  • Introduction of new services based on profitability
  • Interworking with existing PSTN and other operator's networks
  • QoS for guaranteed services and critical business customers
  • Tariff principles as a function of market demand and consumption of

network resources (Backward Cost Assignment)

  • Universal Service Obligations for basic services and internet
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June 2005

ITU/BDT Migration towards NGN - O.G.S.

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Network Architecture Network Architecture towards towards NGN

NGN

Key Factors: Questions Key Factors: Questions

  • When to start network migration ?
  • Short term versus long term versus combined per network segment
  • Where to start ?
  • Access versus local versus transit versus applications
  • How to perform migration ?
  • Overlay versus substitution versus new sub-networks at growing areas
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SLIDE 6

June 2005

ITU/BDT Migration towards NGN - O.G.S.

  • slide 6

Network Architecture Network Architecture towards towards NGN

NGN

Key Factors: Country Status Key Factors: Country Status

  • Diversity of Geo-scenarios in customers density and development

level: homogeneous versus heterogeneous

  • Development level for accessibility, fixed services, mobile services

and video

  • Aging of installed equipment for Outside Plant, Transmission and

Switching

  • Competition level for fixed and mobile services
  • Regulatory status
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SLIDE 7

June 2005

ITU/BDT Migration towards NGN - O.G.S.

  • slide 7

Network Network Architecture towards Architecture towards NGN NGN Content Content

  • Key factors for the evolution towards NGN
  • Services and revenue motivations
  • Network architecture consolidation at transit, local and access levels
  • Topology and migration
  • Network optimization based on planning methods and tools
  • Support to Network Design
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SLIDE 8

June 2005

ITU/BDT Migration towards NGN - O.G.S.

  • slide 8

Network Architecture Network Architecture towards towards NGN

NGN

Architecture Consolidation: Topology Architecture Consolidation: Topology

Topological changes impact on infrastructure and are slower to implement than technology substitution

  • Less network nodes and links due to the higher capacity of systems

(one order of magnitude).

  • Same capilarity at access level due to identical customer location
  • Topological connectivity higher for high capacity nodes and paths for

security

  • High protection level and diversity paths/sources in all high capacity

systems, both at functional and physical levels

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June 2005

ITU/BDT Migration towards NGN - O.G.S.

  • slide 9

Network Architecture Network Architecture towards towards NGN

NGN

Architecture Consolidation: Topology Architecture Consolidation: Topology

What changes from current scenario towards target network ?

Other Networks

DLC

Control Transport/Media Distributed Switching

DSL Wireless gateway

Softswitch OSS Services Packet Network IP/MPLS/CAC

Access gateway Access gateway Access gateway Trunk gateway

SCP

TDM

POTS ISDN RSU LEX/TEX LEX PCM

Data ATM/IP

MUX/DSLAM

NMC

SS7

HDSL/XDSL

NAS

Mob

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ITU/BDT Migration towards NGN - O.G.S.

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Structure Simplification

Network Architecture Network Architecture towards towards NGN NGN Architecture Consolidation: Topology Architecture Consolidation: Topology

TRANSIT NETWORK TRANSIT NETWORK NATIONAL LAYER NATIONAL LAYER REGIONAL LAYER REGIONAL LAYER

RU LAYER LEX LAYER Customers LAYER

Single-layered TRANSIT NETWORK Single-layered TRANSIT NETWORK NATIONAL/REGIONAL LAYER NATIONAL/REGIONAL LAYER

RU LAYER LEX/GW LAYER Customers LAYER

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SLIDE 11

June 2005

ITU/BDT Migration towards NGN - O.G.S.

  • slide 11

Network Architecture Network Architecture towards towards NGN

NGN

Architecture Consolidation: Access Architecture Consolidation: Access

Access dominated by physical infrastructure cost and deployment time

  • Quick deployment of DSL and Multimedia Services
  • FO closer to customer when implementing new outside plant or

renovating existing one

  • New Wireless technologies for low density customer scenarios
  • Shorter LL length than classical network to be prepared for high

bandwidth Multimedia services

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Network Architecture Network Architecture towards towards NGN NGN Architecture Consolidation: Architecture Consolidation: Wireline Wireline Access Access

Local: ~ 40 km Distribution: mean value ~1,7 km Drop: mean value ~300 m

Typical historical Access Network structure

SDF SDF SDF FDF

main cable

branching cables drop line MDF

. .

. .

NTBA LEX

LEX Local Exchange MDF Main Distribution Frame FDF Feeder Distribution Frame SDF Subscriber Distribution Frame SDF drop line

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Network Architecture Network Architecture towards towards NGN NGN Architecture Consolidation: Access evolution Architecture Consolidation: Access evolution

Typical Access Network evolution

Local: ~ 40 km Distribution: mean value ~1,7 km Drop: mean value ~300 m SDF SDF SDF DLC branching cables drop line Optical Interface

. . . .

. .

NTBA LEX/GW

LEX Local Exchange GW Gateway MDF Main Distribution Frame DLC Digital Loop Carrier SDF Subscriber Distribution Frame FO Fiber Optic DLC DLC drop line

. .

FO

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June 2005

ITU/BDT Migration towards NGN - O.G.S.

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Network Architecture Network Architecture towards towards NGN

NGN

Architecture Consolidation: Local Architecture Consolidation: Local

Dominated by functions migration investment and interoperability

  • Move from joint switching and control to separated control and media

GW

  • Introduce Multimedia Services at all areas
  • Optimize number, location of nodes and interfaces among existing and

new network

  • Requires longer time and higher investments due to variety of geo-

scenarios and geographical distribution

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June 2005

ITU/BDT Migration towards NGN - O.G.S.

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Network Architecture towards NGN Architecture Consolidation: Local Local

Access gateway

LEX Layer LEX Layer

Exchange A Packet mode network Trunking gateway IP links Exchange A subscriber “Growth” Trunking gateway Access gateway

TEX Layer TEX Layer Softwitches/ MGCs located in few sites

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June 2005

ITU/BDT Migration towards NGN - O.G.S.

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Network Architecture Network Architecture towards towards NGN

NGN

Architecture Consolidation: Core Architecture Consolidation: Core

Dominated by high capacity and protection level

  • Overlay deployment for full coverage in all regions
  • Quick deployment needed for homogeneous end to end connections
  • Strong requirements for high quality, protection, diversity paths and

survivability

  • Importance of the optimization for location and interconnection
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June 2005

ITU/BDT Migration towards NGN - O.G.S.

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Network Architecture Network Architecture towards towards NGN

NGN

Architecture Consolidation Architecture Consolidation: Core

: Core

Local Exchanges Remote Units

LEX Layer LEX Layer

Trunking gateway in each regional site

Packet mode network

IP links short distance

Regional Level Regional Level

Softwitches /MGCs in few sites

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June 2005

ITU/BDT Migration towards NGN - O.G.S.

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Network Architecture Network Architecture towards towards NGN

NGN

Architecture Consolidation Architecture Consolidation: Core

: Core

Local Exchanges Remote Units

LEX Layer LEX Layer

Trunking gateway in each local site

Packet mode network

IP links Long distance

Regional layer Regional layer

Softswitches/MGCs located in few sites

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June 2005

ITU/BDT Migration towards NGN - O.G.S.

  • slide 19

Network Architecture Network Architecture towards towards NGN

NGN

Architecture Consolidation: Combined Segments Architecture Consolidation: Combined Segments

Where to start and how to co-ordinate migration?

Network “consolidation”

Cost Optimisation of the network

  • Reducing nodes and increase their capacity
  • Deployment of ADSL and multiservice access

Network expansion

NGN solution :

  • Cap and Grow; this means keeping the existing PSTN network as it is, and grow

demand with NGN equipment

Network replacement

Replacement of out-phased (end of life) TDM equipment

  • gradual replacement : this means coexistence of the two technologies
  • full accelerated replacement with a short transition period

Need to optimize overall network evolution: technically and economically

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June 2005

ITU/BDT Migration towards NGN - O.G.S.

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Smooth migration to NGN Smooth migration to NGN Network Architecture Network Architecture towards towards NGN

NGN

Architecture Consolidation: Combined Segments (I) Architecture Consolidation: Combined Segments (I)

Multiservice Node

Access Access Customers Customers Core Core

PSTN Class 4 Subscriber unit

RSP

DS

Data Mux

IN

Edge Edge

PSTN Class 5 SSP

International International Core Core

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June 2005

ITU/BDT Migration towards NGN - O.G.S.

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Network Architecture Network Architecture towards towards NGN

NGN

Architecture Consolidation: Combined Segments (II) Architecture Consolidation: Combined Segments (II)

Multiservice node

Access Access Customers Customers Core Core

Subscriber unit MM

NGCR

Optical

AGW

Softswitch

Associated TK GW

Edge Edge International International Core Core

NGER

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June 2005

ITU/BDT Migration towards NGN - O.G.S.

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Network Architecture Network Architecture towards towards NGN

NGN

Architecture Consolidation: Combined Segments Architecture Consolidation: Combined Segments

CAPEX

  • TDM and NGN CAPEX are

close

  • NGN CAPEX in the first

years driven by geographic coverage

  • Access systems represent a

large part of CAPEX – similar values in TDM and NGN

OPEX

  • OPEX in NGN trends to be

lower

  • Migration scenarios will have a

mix of TDM OPEX (installed base) and NGN OPEX (substitution and growth)

  • Significant impact of

manpower cost due to convergence in operations

Overall impact of evolution on network CAPEX and OPEX Key factors for the evaluation: Geo-scenarios, Network grow rates, Aging of equipment, New services

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June 2005

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  • slide 23

Network Architecture Network Architecture towards towards NGN

NGN

Architecture Consolidation: Scenario evaluation Architecture Consolidation: Scenario evaluation

  • Net Present Value (NPV) for the overall migration project is the

best global evaluator A large variety of country scenarios and transition strategies generate major differences in the economical results Planning to be performed per country and operator

NPV for C4 Scenario in alternative A

(25 000) (20 000) (15 000) (10 000) (5 000)

  • 5 000

10 000 15 000 20 000 2004 2005 2006 2007 2008 delta CAPEX Opex savings cumulated DCF

NPV for C5 Scenario in alternative B

(250 000) (200 000) (150 000) (100 000) (50 000)

  • 50 000

2004 2005 2006 2007 2008

delta CAPEX Opex savings cumulated DCF

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June 2005

ITU/BDT Migration towards NGN - O.G.S.

  • slide 24

Network Network Architecture towards Architecture towards NGN NGN Content Content

  • Key factors for the evolution towards NGN
  • Services and revenue motivations
  • Network architecture consolidation at transit, local and access levels
  • Topology and migration
  • Network optimization based on planning methods and tools
  • Support to Network Design
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June 2005

ITU/BDT Migration towards NGN - O.G.S.

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Network Architecture Network Architecture towards towards NGN

NGN

Support tools: Design and Optimization Support tools: Design and Optimization

Required functionality for Technical design tools

  • Service demands characterisation and traffics for VoIP and NGN multiservice flows
  • Conceptual Network Design and Capacity Planning
  • Comparison of different network structures
  • Routing flows for most typical cases including OSPF, shortest path, widest path and weighted cost

functions.

  • Optimizing locations and connections of network gateways
  • Cost, Performance and Reliability Analysis
  • Estimation of investment costs for the rollout and the extension of the investigated multi-service

network

  • Estimation of end-to-end delays
  • Technical Site and System Planning
  • Allocation of the IP or MPLS links
  • Formation of virtual networks
  • Routing over ATM links or PDH/SDH systems or tunneling via other IP links
  • Sub-networking and addressing
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June 2005

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Network Architecture Network Architecture towards towards NGN NGN Example of Design Example of Design Supporting tools Supporting tools

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June 2005

ITU/BDT Migration towards NGN - O.G.S.

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Network Architecture Network Architecture towards towards NGN NGN Example of Design Example of Design Supporting tools Supporting tools

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June 2005

ITU/BDT Migration towards NGN - O.G.S.

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Network Architecture Network Architecture towards towards NGN NGN Example of Design Example of Design Supporting tools Supporting tools

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June 2005

ITU/BDT Migration towards NGN - O.G.S.

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Network Architecture Network Architecture towards towards NGN NGN Example of Design Example of Design Supporting tools Supporting tools

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June 2005

ITU/BDT Migration towards NGN - O.G.S.

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Network Architecture Network Architecture towards towards NGN NGN Example of Design Example of Design Supporting tools Supporting tools

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June 2005

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Network Architecture Network Architecture towards towards NGN

NGN

Summary of Evolution Factors Summary of Evolution Factors

  • Ensure service continuity
  • Plan business and services first, later the network with

proven solutions.

  • Implement pilot cases before network migration
  • Differentiation to competitors on new services and quality