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1© 2005 Cisco Systems, Inc. All rights reserved.Next Generation NetworksFrancisco Fuentes

NEXT GENERATION NETWORKS

EC WORKSHOP

22 JUNE 2005

FRANCISCO FUENTES

TECHNOLOGY STRATEGY

CISCO SYSTEMS

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INFRASTRUCTURE EVOLUTION

DESCRIPTION 1

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Infrastructure EvolutionIt is a Multilayer TransformationIt is a Multilayer Transformation

• NGN is a term used for networks that used technologies (in most of the cases IP) allowing to achieve convergence in order to carry voice, video and data over the same infrastructure rather than separate networks (core centric definition)

• This transformation will reach out/impact many layers of the infrastructure and not just the core

• This transformation will follow an evolutionary approach toward support of “mass customised” services and beyond

• The starting driver may differ from one operator to another

Existing Network End of Life

OPEX reduction

Innovative Services Creation

Faster Time to Market

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Infrastructure Evolution Multilayer - Reach and ScopeMultilayer - Reach and Scope

• Next Generation Core is delivered by the means of changing the equipment for transmission and switching

Converged Network

• When it is touching the access it is referenced as Next Generation Access

Higher bandwidth, Greater symmetry, Lower contention, Supporting higher peaks

• Next Generation Service Platform is the platform controlling the services

The provision and programmability of services

• Together NGC, NGA and NGSP will create the NGN Framework of the future.

• The Implementation sequence varies in terms of rational, span, benefits and time period

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Infrastructure Evolution Characteristics and FeaturesCharacteristics and Features

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INFRASTRUCTURE EVOLUTION

ECONOMICAL DRIVERS 2

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Drivers for the Evolution

Source: Ovum

TraditionalTraditional

Revenuesp/min

Costsp/min

Time

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Profitability EquationFixed Cost ReductionFixed Cost Reduction

• CAPEXReduction/elimination of network layers (e.g. SDH, ATM)

Network consolidation

Use of standards for NGN networking equipment

Efficiency gain with IP

• Network maintenance, outsourcing costs

Fewer network elements

Fewer Interfaces

Large savings in network maintenance.

• Other operating costsProperty (Footprint reduction)

Power costs,

IT costs.

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Profitability EquationFixed Cost Reduction - ExampleFixed Cost Reduction - Example

Source: Cisco, Italtel Source: Ovum

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Profitability EquationRevenues GrowthRevenues Growth

Source: Goldman Sachs, 2005 Source: Gartner, 2004

Source: Ovum ,2003Source: RHK, 2004

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Profitability EquationRevenues Growth - ExampleRevenues Growth - Example

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INFRASTRUCTURE EVOLUTION

TECHNOLOGY ENABLERS 3

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INTELLIGENT INFORMATION NETWORK

Architecture

GAMING DATACENTER

PRESENCE-BASED

TELEPHONYWEB

SERVICESMOBILE

APPS

IPCONTACT CENTER

IntelligentEdge

CustomerElement

MultiserviceCore

Access / Aggregation

Framework for User andApplication-Based Control(Data, Voice, Video, Mobility)

Service Exchange

AP

PL

ICA

TIO

N

CO

NV

ER

GE

NC

E

SE

RV

ICE

C

ON

TR

OL

C

ON

VE

RG

EN

CE

NE

TW

OR

K

CO

NV

ER

GE

NC

E

O P

E R

A T

I O

N A

L

L A

Y E

R

TransportTransport

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Innovation at the Application Layer

VOICE DATAVIDEO

Push-to-Talk Video-Based Security

Presence-Based Communication

Video-on-Demand

Mobile Enterprise

Multi-Player Gaming

Video Telephony

TV / Web Integration

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Service Control for Convergence

151515© 2004 Cisco Systems, Inc. All rights reserved.

SERVICE EXCHANGE

HOW?WHERE?

WHO? WHAT?

IDENTITY MANAGEMENTUser / Device IDLocation / PresenceService RegistrationAudit / LoggingAssured Authentication

MOBILITY MANAGEMENTDevice RoamingService MobilityUser Mobility

DYNAMIC SESSION MANAGEMENTSession Initiation & Call Control Rich-Media ControlBandwidth & QoS per Session Accounting / Billing

POLICY MANAGEMENTSubscriber PolicyApplication PolicyPer-Sub Service

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Network Convergence

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Standardized and Interoperable Solutions

• IETF, ITU developing standards protocols and standard Interfaces

SIP,

QoS,

MPLS,

MPLS-TE

• ETSI work on NGN architecture

TISPAN

• 3GPP

IMS

• ITU and IETF join work on NGN

At different layers

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INFRASTRUCTURE EVOLUTION

CONCLUSIONS 4

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ConclusionsTransformation beyond the CoreTransformation beyond the Core

Beyond Voice,

ALL SERVICES

Beyond a Trend,

A BUSINESS IMPERATIVE

Beyond Core,

NETWORK-WIDE

Beyond a Destination,

A JOURNEY

Beyond Access,

BANDWIDTH THROUGHOUT

Beyond “For Just One Network”,

TO CREATE ONE NETWORK

191919© 2004 Cisco Systems, Inc. All rights reserved.0904_CISCO NGN

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ConclusionsEvolution Addressing the SP Business ModelEvolution Addressing the SP Business Model

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ConclusionsNo One Single Approach nor ReachNo One Single Approach nor Reach

Source: CSFB, 2005

22© 2005 Cisco Systems, Inc. All rights reserved.