11 Carrier Ethernet Wholesale Services & Interconnection
Trends 31 October 2011 Slide 2 2 Wholesale Ethernet Access Services
2 Speakers Tadashi Egami, Vice President of Wholesale Marketing,
MegaPath Wholesale Les Williams, Director of Ethernet Exchange
Services, Telx Ralph Santitoro, Director of Carrier Ethernet Market
Development, Fujitsu Moderator: Stan Hubbard, Senior Analyst &
Ethernet Expo Chair, Heavy Reading Slide 3 3 Wholesale Ethernet
Access Services 3 Topics MEF update & key industry initiatives
Wholesale market opportunity & business model evolution New
Ethernet access service type Wholesale perspective on provider
needs Provider interconnection Completing the picture with service
OAM Audience Q&A Slide 4 4 Wholesale Ethernet Access Services
Education Standards Compliance Accelerating the Global Adoption of
Carrier Ethernet Networks and Services MEF: Defining Body of
Carrier Ethernet 186 Member Companies 91 Service Providers Global
Representation Slide 5 5 Wholesale Ethernet Access Services 5 MEF
14 ATS MBH OAM Frame -work Service Attributes ENNI SOAM CARRIER
ETHERNET 31 Carrier Ethernet Specifications Service Defs MEF 9 ATS
Archi- tecture Cloud, Backhaul 2002 2003 2004 2005 2006 2007 2008
2009 2010 2011 2012 2013 On- Demand, Automation Slide 6 6 New
Services for Wholesale Access ENNI UNI Carrier Ethernet Access
Network Carrier Ethernet Service Provider Many New Projects
Including Carrier Ethernet for Mobile Backhaul Carrier Ethernet as
Ethernet Cloud Carrier Cloud Provider(s) Ethernet Cloud Carrier
Enterprise Cloud Consumers Secure, Deterministic QoS enabled Per
application SLA No regulatory issues IT Manageable Optimizing the
Backhaul Slide 7 7 Wholesale Ethernet Access Services 2010 2011
2012 2013 2014 CAGR Wholesale Ethernet Service Revenue 48.2% 38.4%
29.8% >1G 1G - 100M 100M - 10M Slide 8 8 Wholesale Ethernet
Access Services 8 1 st Audience Poll Question For service providers
on the webinar - Which services would you like to extend into new
markets during the next two years? (select all that apply) Ethernet
Private Lines (EPL) Ethernet Virtual Private Lines (EVPL) E-LAN
services IP services Cell Site Backhaul services Slide 9 9
Wholesale Ethernet Access Services Accelerated MEF 26
interconnection of autonomous Carrier Ethernet networks Business
Model for Wholesale Access: Before Market
ConditionChallengesImplementation PlatformInterconnection Options
Ubiquitous Carrier Ethernet Off-net connectivity Time-to-market
Disparate SLAs Case-by-case provider agreements Direct ENNIs MEF 26
- ENNI Standard Defined Emergence of Ethernet Exchanges profitable
& efficient scalability Standardized, streamlined delivery of
Carrier Ethernet services over multiple provider networks. Carrier
Ethernet services delivered to end-users connected at Off-Net
locations while supporting service attributes and SLAs SLAs mostly
limited to Network Service as ENNI to UNI remained undefined Slide
10 10 Wholesale Ethernet Access Services Business Model for
Wholesale Access: Today MEF E-Access Service Type Defined Standard
Certified ENNI to UNI Carrier Ethernet Delivery Established
industry standard for Deploying, buying and selling Ethernet Access
Services True end-to-end service experience (Class of Service,
Management & Protection) Retail Ethernet Provider able to offer
seamless end-to-end SLA Ethernet Exchanges taking a critical role
for efficient aggregation of wholesale access UNI Branch Office UNI
Ethernet Access Services ENNI Buying Providers On-Net Network
Enterprise HQ Enterprise mid size branch end-user UNI ENNI Ethernet
Access Services Long Haul UNI SOHO, telecommuter, end-user Cloud
ENNI Carrier Ethernet Exchange Slide 11 11 Wholesale Ethernet
Access Services Business Model for Wholesale Access: Emerging
Dynamic Wholesale Market Service Provider-to-Communications Service
Provider (non traditional Ethernet Network Provider) Carrier
Ethernet Exchanges playing lead broker in facilitating these
services today Business model still shaping up (private &
hybrid cloud demands) Large wholesale opportunity for E-Access
providers MEF actively reviewing the inner workings of these
engagements UNI Branch Office UNI Ethernet Access Services ENNI
Buyers Platform Network Enterprise HQ Enterprise mid size branch
end-user UNI ENNI Ethernet Access Services Long Haul UNI SOHO,
telecommuter, end-user Cloud ENNI Carrier Ethernet Exchange Cloud/
CSP Slide 12 12 Wholesale Ethernet Access Services MEF Retail
Ethernet Services UNI-to-UNIUNI-to-UNI MEF Ethernet Service Types
E-LAN Service Type Multipoint L2 VPNs Multicast networks
Alternative to hub & spoke E-Tree Service Type Rooted
multi-point L2 VPNs Broadcast networks Telemetry networks UNI
Multi-point to Multi-point EVC Multi-point to Multi-point EVC UNI
Point-to-Point EVC UNI E-Line Service Type Virtual Private Lines
(EVPL) Ethernet Private Lines (EPL) Ethernet Internet Access E-
Access Service Type* Access EPL Access EVPL Ethernet Access to IP
services ENNI UNI Point-to-Point E-Access Rooted Multipoint EVC
Ethernet Access Provider Ethernet or IP Service Provider New MEF
Wholesale Ethernet Services UNI-to-ENNIUNI-to-ENNI *Technical
Specifications targeted for ratification in 1/12. Slide 13 13
Wholesale Ethernet Access Services New MEF Ethernet Access Services
Establishes first industry* standard defining Ethernet Access
Services Standardizes first/last mile Ethernet access connections
Enables retail Ethernet service providers to reach off-net customer
locations Defines point-to-point, UNI-to-ENNI Ethernet Access
Services New MEF Certification accompanies new E-Access
specification Service Type Port-Based Service (at the UNI)
VLAN-Aware Service (at the UNI) E-Access Access EPL Ethernet
Private Line Access EVPL Ethernet Virtual Private Line End-User UNI
Ethernet Access Provider ENNI E-Access UNI Ethernet Service
Providers and Ethernet Exchanges Ethernet Virtual Connection (EVC)
End-User Slide 14 14 Wholesale Ethernet Access Services Internet
Access Service Example using Access EPLs ISP buys Access EPL 1 from
Wholesale Ethernet Access Provider To interconnect Subscriber A
Site UNI to ENNI Retail Provider buys Access EPL 2 from Ethernet
Access Provider To interconnect Subscriber B Site UNI to ENNI ISP
delivers Internet Access Service to Subscribers A and B E-NNI
Ethernet Access Provider Internet Service Provider UNI Subscriber A
Site ENNI Access EPL 1 Access EPL 2 Subscriber B Site Internet
E-Access services transparently supports IPv4 and IPv6 Slide 15 15
Wholesale Ethernet Access Services EVPL example connecting off-net
locations using Access EPLs Retail Provider buys Access EPL 1 from
Access Provider To interconnect Subscriber Site A UNI to ENNI
Retail Service Provider sells EVPL 1 to Subscriber To interconnect
Subscriber Sites A and C Retail Provider buys Access EPL 2 from
Access Provider To interconnect Subscriber Site B UNI to ENNI
Retail Service Provider sells EVPL 2 to Subscriber To interconnect
Subscriber Sites B and C E-NNI Ethernet Access Provider Retail
Service Provider UNI Subscriber Site C Subscriber Site A ENNI
Access EPL 1 Access EPL 2 EVPL 2 Subscriber Site B EVPL 1 Slide 16
16 Wholesale Ethernet Access Services EP-LAN service example
connecting off-net locations using Access EPLs from two different
Ethernet Access Providers Retail Provider buys Access EPL 1 from
Access Provider 1 To interconnect Subscriber Site A UNI to ENNI 1
Retail Provider buys Access EPL 2 from Access Provider 2 To
interconnect Subscriber Site B UNI to ENNI 2 Retail Service
Provider sells EP-LAN service to Subscriber To interconnect
Subscriber Sites A, B and C Ethernet Access Provider 1 Retail
Service Provider UNI Subscriber Site B Subscriber Site A E-NNI 1
Access EPL 1 Subscriber Site C P2P Access EPLs used to deliver a
Multipoint EP-LAN Service Ethernet Access Provider 2 E-NNI 2 UNI
Access EPL 2 EP-LAN Slide 17 17 Wholesale Ethernet Access Services
17 Wholesale Ethernet Access Services Wholesale Ethernet Access
Service Market Some things to consider Ethernet preferred
technology for inter-provider handoff Retail Providers wants Layer
2 handoff to wholesale access provider Even if Retail Provider is
delivering an IP service to its customers Ethernet services
delivered over different L1 networks SONET, T1s/T3s, Wavelengths,
OTN, copper pairs, fiber (IEEE 802.3) Need to unify Ethernet access
services over these different networks MEF Ethernet Access Services
achieve this Diverse usage of Ethernet Access Services Access to IP
Services Layer 2 site-to-site connectivity Residential broadband
backhaul to IP POP Cell site backhaul to mobile switching center
Broad usage of MEF E-Access services over a diverse set of access
network technologies Slide 18 18 Wholesale Ethernet Access Services
Wholesale Ethernet Access Service Challenges Ethernet ENNI Ethernet
UNI Video Service Provicer Ethernet Service Provider IP/MPLS VPN
Provider Wireless Service Provider Cloud Service Provider Internet
Service Provider Retail Service Provider Customer Premises SONET
Ethernet rings DS-3s DS-1s SONET Ethernet PDH Access Network Copper
Access Network WDM Access Networks How do you deliver MEF E-Access
services over diverse access networks? Slide 19 19 Wholesale
Ethernet Access Services MEF-compliant E-Access Services over a
wide range of Layer 1 access networks SONET GbE/10GbE NxDS-3 NxDS-1
OC-n EoX Aggregation GbE/10GbE Retail Service Provider GbE PDH
Access Network EoSEoS EoCuEoCu EoPDHEoPDH EoFEoF ENNI Video Service
Provider Ethernet Exchange Provider IP/MPLS VPN Provider Ethernet
Exchange Provider Copper Access Network Access Network EoX Access
UNI IP DSLAM Internet Service Provider Customer Premises MSPP EoX
Gateway EoX Gateway enables MEF E-Access Services over diverse
Access Networks xDSL CPE EoPDH NID Ethernet NID Packet Optical
Networking Platform ENNI Ethernet Service Provider Wireless Service
Provider Cloud Service Provider Connect directly with Retail
Providers Connect indirectly to Retail Providers through Ethernet
Exchange EoPDH NID EoX Gateway EoX Gateway makes different Layer 1
access networks look like an Ethernet Access Network Ethernet in,
Ethernet out Slide 20 20 Wholesale Ethernet Access Services 20
Wholesale Ethernet Access Services 2 nd Audience Poll Question What
do you believe is the biggest challenge in introducing or selling
Ethernet services? (select one) Availability (lack of footprint)
Qualifying process for the service Installation turnaround Quality
of service Not enough service features Non-standard interconnects
Slide 21 21 Wholesale Ethernet Access Services Provider MP
Wholesale Perspective on Provider Needs Slide 22 22 Wholesale
Ethernet Access Services Access Large Business Devices Medium
Business Branch Offices Transitioning to Ethernet ATM NNI (DS3,
OC3) IP BACKHAUL/ L3 NNI (GigE) DSLAM ATM DSLAM Ethernet DSLAM IWG
ASBR PE EoC Retail Provider ATM Retail Provider Ethernet Retail
Provider MPLS Retail Provider IP MPLS MPLS ICI (GigE) Internet XDSL
EoDS0 EoDS3 T1/BT1 DS3 ENNI (GigE) X-changes Slide 23 23 Wholesale
Ethernet Access Services 23 Wholesale Ethernet Access Services
Nationwide EoC Capitalize on Demand Delivered Initial EoC Footprint
Build in Top Markets to Reach Additional 1.5 million businesses
Build Additional EoC COs to Reach Another 1 million businesses 100
COs in LA Traction with Wholesale partners in LA region Turn up
300+ COs in 2011 Key markets covered: East: New York, Washington
DC, Philadelphia, Baltimore, Boston West: San Fran, Seattle, San
Diego Mid-west/ Mountain: Chicago, Denver, Dallas, Phoenix
Southeast: Miami, Atlanta 250+ COs Ready for Service in 2012 Fill
out existing key markets +: Houston Austin Detroit Etc. Introduce
higher speeds (>20M) 2011 Build Out Top Markets 2012 Expand
Further 2010 Symmetric data rates of 2.0, 3.0, 5.0, 8.0, 10.0,
12.0, 15.0 and 20.0M GA Multiple Ethernet Class Of Service packages
Strong SLAs: latency, availability, packet delivery Compelling
price points Updated Sept, 2011 Slide 24 24 Slide 25 25 Wholesale
Ethernet Access Services 25 Wholesale Ethernet Access Services
Ethernet Exchange Fundamentals A Ethernet Exchange must facilitate
all 5 attributes of Carrier Ethernet Services must support
Translation of MEF EVPL, E-Line, E-LAN service types and profiles
with multiple CoS Scalability the key cost saving and revenue
growth driver behind the development of Carrier Ethernet Exchanges
Scalability Scalability. Must support and access millions of EVCs
and worldwide locations with scalable processes Quality of Service
Service Monitoring Must support enforceable, measurable, end-to-end
service (frame delay, delay variation, availability). Quality of
Service Service Monitoring Must support enforceable, measurable,
end-to-end service (frame delay, delay variation, availability).
Service Management Process Integration Must support normalized
process human and system for process transactions Reliability
Protection. Must provide protection: carrier class with
geographical diversity Slide 26 ENNI UNI Service Provider End User
Slide 27 27 Q&A
