IP Video is a Strategic Priority for our customers
No question, Video services offer the most significant ARPU growth potential for our customers .
New revenue from new services
Customer loyalty through bundling
Long term growth potential from yet to be identified new services
Triple-Play Network Architecture: Basis for Business
3Play Requirements are also Business Requirements:
Q o S
BSA = Broadband Service Aggregator BSR = Broadband Service Router BSA BSA BSA IP BSA NGN Internet Video Network Management VPLS IP DSLAM 5750 SSC Subscriber Services Control BSR BSA = Broadband Service Aggregator BSR = Broadband Service Router BSA BSA BSA IP BSA NGN Internet Video Network Management VPLS IP DSLAM 5750 SSC Subscriber Services Control BSR BSA = Broadband Service Aggregator BSR = Broadband Service Router BSA BSA BSA IP BSA NGN Internet Video Network Management VPLS IP DSLAM 5750 SSC Subscriber Services Control BSR
Facilities are the Single Highest Services Cost! Costs mainly related to the Facilities: Mainly Access!
Convergence: New Scenario for Data Services
Data Services have been considered “Special”
Transport and Access overlay networks have been built
Economies of scale were often doubtful
Specialized A to Z organizations were created
3Play changes this landscape for the first time
Services developed for residential (Broadband) are also attractive for Business
There is a migration over time: low speed FR -> Broadband DSL, High Speed FR and ATM -> Ethernet Fibre links
Enterprises Have Targeted Ethernet RHK Enterprise Business Study (2005) Key Results: Why Choose Ethernet? The four most important decision factors are: WAN Bandwidth requirements continue to increase WAN Ethernet can help reduce IT costs End users are willing to increase WAN services spend IF total IT spend can be reduced WAN Ethernet is supporting enterprise-wide applications BANDWIDTH IS THE NAME OF THE GAME: this is the definite advantage of Ethernet!
World Wide Shift Towards Ethernet: Drives Carrier Revenues from traditional data services over separate infrastructures are eroding Service providers want to deliver a richer set of services and scalable bandwidth over more efficient network to maximize revenue and profit potential, and to ensure competitiveness Enterprises want to better control telecom expenditures and roll out new applications by leveraging more cost-effective communications technologies Enterprises want more flexible communications infrastructures to face uncertain market conditions HEAVY READING Carrier Ethernet Equipment Market Outlook August 2005
Putting it all together
There are many possible Business cases
Most important conditions influencing the business case are: