IP NGN Transformation for Service Providers in
Emerging Markets
by Ayush Sharma (Contributions: Harpreet Singh and Kunal B...
Most of Cisco’s SP large customers from
                                                                                  ...
typically any engineer’s choice for sim-
                                                                                 ...
•   Heterogeneous networks with multi
    vendor and protocol devices.

•   Currently there are plans to have differ-
    ...
with transition roadmap to comple-
                                                                                       ...
challenges mentioned above, but also
                                                                                     ...
Americas Headquarters                                  Asia Pacific Headquarters                               Europe Head...
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IP NGN Transformation for Service Providers in Emerging Markets

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This article covers the business drivers for IP NGN transformation, technological challenges faced by the carriers in India and emerging markets and how Cisco can transform their business through the SNO transformation model (Services, Network and Operations) especially in the context of outsourcing/Managed Services and BOT (Build, Operate and Transfer) business models.

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IP NGN Transformation for Service Providers in Emerging Markets

  1. 1. IP NGN Transformation for Service Providers in Emerging Markets by Ayush Sharma (Contributions: Harpreet Singh and Kunal Bhatia) Abstract ing and transforming the existing networks with minimal disruption to existing services • Migration of live services seamlessly This article covers the business drivers on the transformed network. and the need for faster service creation. for IP NGN transformation, technological challenges faced by the carriers in India In order to counter settle the incumbent • Relatively expensive IP enabled end and other emerging markets and how devices. players and meet market challenges, new Cisco can transform their business through the SNO transformation model (Services, entrants as well as existing telcos need to distinguish themselves by providing supe- • Price pressures in fiercely competitive and price sensitive markets like India Network and Operations) especially in the rior end user experience and value added and emerging markets. context of outsourcing/Managed Services services. This differentiation needs a shift and BOT (Build, Operate and Transfer) busi- in mindset, revamping of processes and In addition to the above, another key tech- ness models. transformation of their networks. nology challenge faced today is to migrate TDM based traditional voice as well as Introduction The landscape in these markets is chang- ing from separate Classical product and Mobile voice subscribers seamlessly over IP transport and at the same time take care The fixed-line, mobile and broadband mar- service delivery offerings to equipment of advanced technologies and service ket in India and emerging markets is under- vendors taking on SP business processes introduction at the access layer (Wi-Max, going changes at a fast pace. Traditionally, including headcount and priming multi- Wi-Fi, GPON etc.). the market has been dominated by legacy vendor integrated solution transformation. government sector operators. Private sec- tor Telecom companies have captured a This article focuses primarily on the trans- Drivers for formation piece. reasonable market share in Mobile Voice Transformation and Data, basic telephony, Broadband and MPLS based VPN services in recent Challenges • New Business Opportunities: Private Telcos are jumping on the G, VoIP and The key challenge for Service Providers is years. However, these operators are facing Wi-Max bandwagon as they see de- to keep the network capacity curve ahead an environment of reduced profits and regulation taking place in India, China of the projected market demand, while re- constrained capital budgets for new invest- and other emerging markets. Increase ducing both CAPEX and OPEX. This would ment particularly on the voice side. These in data based services is expected in improve profitability in this intensely com- operators are facing an environment of coming years. petitive market with little pricing power. It is reducing margins and increasing OPEX. In addition, there are challenges of integrat- commonly agreed that packet switching is the better strategic switching platform to • Converged IP Core transport: Con- solidation/Integration of their disparate address these requirements, but a consen- networks towards IP/MPLS based sus is lacking on its scale of use. transport core for superior control and opex reduction. Migration from TDM to Some of the key business and techno IP and Fixed Mobile Convergence are logical challenges identified for transfor- also motivating factors for the carriers mation are: to reduce opex further in the long run • Existing legacy network assets have and offer a variety of IP based value still not reached the depreciation pe- added services at the same time. riod originally planned and hence the crunch for new CAPEX to build • Outsourcing the network to Vendor: The primary driver is to overcome new networks. technology obsolescence and have • Defining and enabling new services/ the vendor share the technology risks. revenue streams. This also helps compensate for the dearth in IP skills in such companies IP NGN ARCHITECTURE THOUGHT LEADERSHIP JOURNAL - Q1 FY2010
  2. 2. Most of Cisco’s SP large customers from this region who want to become market leaders in IP based service offerings in India and rest of the world have • Considerable number of GSM, GPRS, 2G, G and CDMA mobile subscribers in India and SAARC region. (India Telecom Value Chain – Changing Structure and Composition) • Basic ISP services. • Basic telephony landline subscribers. • ADSL2 based Broadband subscribers. • SMB, Enterprise customers using MPLS based VPN services. • IPTV, Mobile TV, DTH, G, Wi-Fi, Wi-Max and Femto (pilot customers). For many SPs their IP/MPLS, CEN (Carrier (India Telecom Value Chain – Increasing relevance of data) Ethernet Network), RAN (Radio access net- work) and TDM based networks are run and and hence these providers are relying heavily on the vendor to plan, design Approach to managed by different groups. Each one is and operate their current networks and Transformation planning to consolidate their networks and build a unified Network Operations Centre take it to the next level. Service Providers’ expectations from Cisco to manage the IP based Super Core, ag- are merely not only to help them build or Furthermore, for better OPEX control, gregation and access networks. transform their network infrastructure but these service providers are looking to- also bring business relevance. This can be Their mantra today is that their customers wards equipment vendors to manage their achieved by working in partnership to help should experience a consistent quality of network on revenue shared basis and pro- them to launch new services quickly as experience across all IP based devices vide managed services to them as well as well as manage there network effectively. irrespective of the access media and their customers. By doing this, they will be networks. This echoes with Cisco’s “Experi- able to release the funds to venture in new Cisco has adopted a three tiered approach ence provider” vision for Service Providers business areas and grow their business for such customers. This three tiered mod- powered by IP NGN framework. early in the wake of fierce competition. el is explained below with by using one of the customer examples from this region. Opportunities Low per capita GDP forces ultra low ARPU in these regions. At the same time, market stage, demographics and technical prog- ress drives hyper growth. According to the recent IBSG analysis, this shapes up 14B USD product and services opportunities in Emerging countries’ market transitions in the following areas • Pervasive Mobile Broadband • Data Centre take-up • IP NGN transport and Carrier Ethernet transformations CISCO PUBLIC
  3. 3. typically any engineer’s choice for sim- plicity and better network operations. However if there is a common resource pool working on such projects then time to market could be an issue here. This is a Capex intensive approach and perhaps can cause disruption to mul- tiple businesses if migration/integration is not managed well. • Outside In: Build and/or expand wire line or wireless access media using ex- isting IP/TDM Core capacity and start “The Connected Life” vision from Cisco reflects the growing trend of “many ser- • Others: High Speed Internet-20MB, the Core convergence process when existing capacity becomes an issue. 80MB and 100MB, Data center vir- vices to many screens anytime anywhere.” It gives rise to skepticism and this ap- tualization, Cloud computing, Virtual This vision will enable these SP customers proach can be perceived as reactive to Contact center. to shift their discrete service model to a the technical folks but very pragmatic “multiple services, multiple devices with consistent experience model.” Network transformation: to the business folks in current market situations. For those large Service providers that Services transformation have diversified into Wireless and Wire • Divide and Transform: Based on the line business and maintain different kind immediate demands, perform transac- Although Cisco’s proposal to each of its SP of infrastructures (IP, MPLS, 2G, CEN, TDM tional network transformation in piece customers is customized, in general the and ATM networks), it becomes some- meals keeping the transformation point idea is to set up a framework to help them times challenging to draw boundaries and of arrival in mind. If there is too much launch new services rapidly and customize transformation roadmap to align with their delay reaching to the point of arrival existing services in residential, business market strategies and organizational struc- then the roadmap and philosophy can and mobile domains. tures. Although Cisco’s traditional model be distorted with the influence of new Here is an example snapshot of expected of splitting the network infrastructure into technologies and perhaps planning services from Transformed network: Access, Distribution/aggregation and Core folks within a SP’s organization. • Voice: Class5 Voice (VoIP), Class4 helps, yet it’s important to keep the busi- ness and organizational priorities in mind Our approach to each customer is dictated Voice, Business Voice, Voice over by their business and technical require- while working on such a roadmap. At the Broadband ments in general but the Outside In ap- very high level the Network transformation • Data: Enterprise VPN ( L-2 , L- ), Access piece was sub divided into the following proach has been very popular with Service Providers from this region. Some of the network backhauling (DSL/ WiMax / categories: technical challenges that were identified in Ethernet etc.), Consumer VPN, Whole- sale VPN • IP Super Core Network Transformation transformation are: • Mobile Data traffic: GPRS/EDGE/HSPA/ • Distribution /Aggregation Network • SPs that are in POTS should be able to Transformation continue using their existing services SGSN-GGSN, IT, Billing, OAMP • Video: IPTV/DTH, B2B Video con- • Access Transformation without any degradation or downtime. ferencing, Contribution and Primary After debating over the following three ap- • The transformation should be done in a phased manner in order to avoid any distribution (Studio to Studio , Content proaches in planning such a transformation service loss. owner to provider) activity • Mobility: 2G/G Mobile RAN Access/ • Inside out: (Build a robust Core first fol- • The services that are running in tradi- tional class 5 switches should also be Core Backhauling, Mobile voice ( R4 lowed by aggregation and access): This replicated to soft switch as well. and later release), Class4 Voice, Mobile approach works well sometimes for Phone as Wallet, Mobile office the Greenfield operators and would be IP NGN ARCHITECTURE THOUGHT LEADERSHIP JOURNAL - Q1 FY2010
  4. 4. • Heterogeneous networks with multi vendor and protocol devices. • Currently there are plans to have differ- ent last mile access transport mecha- nism such as Wi-Max, Fiber, design should be able to handle this seam- lessly with less impact. The network segment wise transformation approach is explained below: IP Super Core Network Transformation Cisco’s proposal here is to consolidate disparate networks into IP based NGN transport by creating a high bandwidth IPoDWDM super core and by pushing complexity at the edge through service separation mechanisms such as dedicated service Provider Edge routers or using Se- From a network perspective, if a new provide IP based backhauling services for cure domain routers in low density areas. service is required, then there is a need Mobility as well as act as a transport for R4, to simply define the service and provision SS7 while providing backend connections This fundamental concept of “simple core, the intelligent gateway function located at to infrastructure needed for the residential complex edge” has been incorporated the edge of the network. The interior of the triple play customers. into a number of functional enhancements network remains unchanged. For example, to the IP protocol suite introduced over the years including IP Security (IPsec), if a service provider wishes to support a Access Transformation VoIP service then all that is involved from Most of the SP customers in this region- Differentiated Services (Diffserv) and the network perspective is the deployment have access network predominantly com- Multiprotocol Label Switching (MPLS). of VoIP media gateways at the ingress and prising of two types of access transport Thus in the case of Service Providers, it is egress (to (de)packetize) the voice stream networks: possible to establish a single IP/MPLS core that provides a fast and efficient transport and a media gateway controller to assist in the call control signaling process. No • IP Based Carrier Ethernet: This network network. Rather than support multiple logi- today exists in major cities/regions changes are needed in the core. cal network infrastructures, this single core of India and Sri-lanka. At the time of network utilizes a uniform set of functional, Packet based MPLS has very tight integra- discussions and workshops with each protocol and operational disciplines. In ef- tion with IP and scales accordingly. It is of these customers, it is envisaged fect the complexity factor of the backbone also independent of the transmission over that this kind of infrastructure will be network is reduced from SP (N) to SP (1) which it operates, allowing providers to buy replicated into more metro cities. There given N number of different networks. the most cost effective transmission solu- are plans to build this kind of green field tion while still running the same services. network in 45 cities witn India. Furthermore, the all-important services are realized through specific per-service func- Aggregation/ • TDM based network: This network ex- tions located at the edge of the network ists in most of the regions today where inside intelligent gateways (Examples are Distribution Network SPs are offering landline voice (POTS) IP routers that classify, police and sched- ule traffic to support a Diffserv per-hop transformation services. Keeping in mind existing Carrier Ether- Besides the above mentioned network behavior or IP/PSTN media gateways that net Aggregation expansion plans, Cisco infrastructure, SP customers have the fol- transform a voice stream into packets and proposes to enhance the capacity of lowing additional components/segments vice-versa). the MPLS based aggregation rings and in their network CISCO PUBLIC
  5. 5. with transition roadmap to comple- menting FTTx. Benefits: • Faster deployment and reach by using Wi-Max/Wi-Fi in smaller towns. • Reuse of TDM infrastructure from Met- ros to Cities. • Better Capex control and ROI by targeting more investment in SMB and Enterprise areas. Beyond Access Node (Towards Core) Recommendations: • Take the existing CEN to IP next gen- eration CEN level by introducing high availability and optimization methods. • Network base lining, standardizing the operational procedures and improved change control process validated through lab augmentation or pilot trials. • Shift from SDH to IPoDWDM w/ ROADMs in Metros to allow bandwidth scaling in line with the service/sub- scriber density projections at the edge • Distributed BRAS architecture • BRAS Network: Both Centralized CPE, Access Node and Access Media Recommendations • New Service introductions (HDTV, Telepresence, Cloud computing, Data and distributed BRAS model has been used by different SP customers. • Ethernet as UNI and NNI (Similar tech- centre and Contact centre virtualization, nologies) Content and IP RAN backhauling). • Last mile access nodes: Their • View access infrastructure from the Benefits: network comprises of wide variety of ac- cess nodes from multiple vendors in their long term perspective. Deploy Fibre where possible. P2P or Passive WDM. • New revenue streams through New network today. The node type varies from Services. MSANs/DSLAMs to DLCs. The new MSAN • Retain ADSL/2+ where in use today • KPI/IP SLA improvements. installations are IP ready/capable. until new fibre allows shortening of the • Improved Customer quality of experi- • Last mile Loop/Technology: Most loop. ence. of the residential customers use copper • Use VDSL2 technology with FTTC for • Predictable Network performance and media with ADSL2 technology to access HSI on copper. For new wireline SMB High speed internet and traditional voice users in Metros, FTTH, FTTC and FTTN quality. services. PRI, ISDN and Ethernet media are used for SMB and Enterprise customers. and appropriate HAG usage is recom- mended. • Faster time to market. It is known that a network cannot be trans- • For Enterprise users, CPE based point Operational formed without anticipating the services, to point high capability Ethernet model transformation: subscriber and infrastructure growth. Here is suggested. are some recommendations and benefits: • Use Wi-Max for low density new circles, IP NGN ARCHITECTURE THOUGHT LEADERSHIP JOURNAL - Q1 FY2010
  6. 6. challenges mentioned above, but also move from an EMS based approach to network centric approach and eventually to a service centric approach in phases. This is done through a series of transfor- mation steps including gaps in the three pillars of the NOC viz. people, processes and tools. Conclusion Cisco’s SNO approach is a top down ap- proach to transformation and takes a holistic view of all aspects of any SP business transformation. By starting from services transformation, the approach ensures that the business challenges are addressed in the first place and the business model and the strategic vision of the company is addressed before making any investments in the network or opera- To meet these SP business goals, reduce Three key environmental changes create tions. The network transformation step operational expenditure and improve three parallel NOC specific business driv- ensures that the network transformation efficiency thereby improving end to end ers that in turn drive three critical goals of aligns to the strategic vision as defined in Service level assurances, Cisco’s proposal NOC Transformations: the services transformation stage and the is to work with them and other third party Cisco’s NOC Transformation Methodolo- transformation is an evolutionary approach vendors to improvise on overall operational gies for these SP customers are designed to ensure that the existing revenue streams quality through processes, people and us- and implemented to not only address the are not compromised in the process of ing industry best practices. adding new ones. Finally the operations transformation ensures that the NOC is equipped to meet the challenges of a transformed network, and an end-to-end service view is taken rather than an ele- ment based approach. The operations transformation ensures an enhanced cus- tomer experience and reduced OPEX per unit of network/ service deployments. The SNO approach thus is a holistic approach to transformation starting from the point where it matters the most: strategy, and ending at where all SPs want to be: reduced costs and increased cus- tomer satisfaction.
  7. 7. Americas Headquarters Asia Pacific Headquarters Europe Headquarters Cisco Systems, Inc. Cisco Systems (USA) Pte. Ltd. Cisco Systems International BV San Jose, CA Singapore Amsterdam, The Netherlands Cisco has more than 200 offices worldwide. Addresses, phone numbers, and fax numbers are listed on the Cisco Website at www.cisco.com/go/offices. CCDE, CCENT, CCSI, Cisco Eos, Cisco HealthPresence, the Cisco logo, Cisco Lumin, Cisco Nexus, Cisco Nurse Connect, Cisco Stackpower, Cisco StadiumVision, Cisco TelePresence, Cisco WebEx, DCE, and Welcome to the Human Network are trademarks; Changing the Way We Work, Live, Play, and Learn and Cisco Store are service marks; and Access Registrar, Aironet, AsyncOS, Bringing the Meeting To You, Catalyst, CCDA, CCDP, CCIE, CCIP, CCNA, CCNP, CCSP, CCVP, Cisco, the Cisco Certified Internetwork Expert logo, Cisco IOS, Cisco Press, Cisco Systems, Cisco Systems Capital, the Cisco Systems logo, Cisco Unity, Collaboration Without Limitation, EtherFast, EtherSwitch, Event Center, Fast Step, Follow Me Browsing, FormShare, GigaDrive, HomeLink, Internet Quotient, IOS, iPhone, iQuick Study, IronPort, the IronPort logo, LightStream, Linksys, MediaTone, MeetingPlace, MeetingPlace Chime Sound, MGX, Networkers, Networking Academy, Network Registrar, PCNow, PIX, PowerPanels, ProConnect, ScriptShare, SenderBase, SMARTnet, Spectrum Expert, StackWise, The Fastest Way to Increase Your Internet Quotient, TransPath, WebEx, and the WebEx logo are registered trademarks of Cisco Systems, Inc. and/or its affiliates in the United States and certain other countries. All other trademarks mentioned in this document or website are the property of their respective owners. The use of the word partner does not imply a partnership relationship between Cisco and any other company. (0903R) Americas Headquarters Asia Pacific Headquarters Europe Headquarters Cisco Systems, Inc. Cisco Systems (USA) Pte. Ltd. Cisco Systems International BV San Jose, CA Singapore Amsterdam, The Netherlands Cisco has more than 200 offices worldwide. Addresses, phone numbers, and fax numbers are listed on the Cisco Website at www.cisco.com/go/offices. CCDE, CCENT, CCSI, Cisco Eos, Cisco HealthPresence, the Cisco logo, Cisco Lumin, Cisco Nexus, Cisco Nurse Connect, Cisco Stackpower, Cisco StadiumVision, Cisco TelePresence, Cisco WebEx, DCE, and Welcome to the Human Network are trademarks; Changing the Way We Work, Live, Play, and Learn and Cisco Store are service marks; and Access Registrar, Aironet, AsyncOS, Bringing the Meeting To You, Catalyst, CCDA, CCDP, CCIE, CCIP, CCNA, CCNP, CCSP, CCVP, Cisco, the Cisco Certified Internetwork Expert logo, Cisco IOS, Cisco Press, Cisco Systems, Cisco Systems Capital, the Cisco Systems logo, Cisco Unity, Collaboration Without Limitation, EtherFast, EtherSwitch, Event Center, Fast Step, Follow Me Browsing, FormShare, GigaDrive, HomeLink, Internet Quotient, IOS, iPhone, iQuick Study, IronPort, the IronPort logo, LightStream, Linksys, MediaTone, MeetingPlace, MeetingPlace Chime Sound, MGX, Networkers, Networking Academy, Network Registrar, PCNow, PIX, PowerPanels, ProConnect, ScriptShare, SenderBase, SMARTnet, Spectrum Expert, StackWise, The Fastest Way to Increase Your Internet Quotient, TransPath, WebEx, and the WebEx logo are registered trademarks of Cisco Systems, Inc. and/or its affiliates in the United States and certain other countries. All other trademarks mentioned in this document or website are the property of their respective owners. The use of the word partner does not imply a partnership relationship between Cisco and any other company. (0903R)

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