Colombo, Sri Lanka, 7-10 April 2009 Evolution of NGN infrastructure for Multi-media applications & FMC Ashwani Kumar Director, Sales Engg UTStarcom, India

Colombo, Sri Lanka, 7-10 April 2009

Evolution of NGN infrastructure for Multi-media applications & FMC

Ashwani KumarDirector, Sales Engg

UTStarcom, India

FORUM ON NEXT GENERATION STANDARDIZATION

(Colombo, Sri Lanka, 7-10 April 2009)


2

Agenda

Global Trends

NGN & Convergence

Converged Network Architecture

NGN Advanced Services ArchitectureSIP Based Multimedia SoftPhone

Unified Centrex

Continuity FMC Solution

Video Conferencing

Case Study- PSTN to NGN Migration


3

Global Trends

Technology TrendsNetworks are moving towards end-to-end IP to support faster and higher BW servicesConverged Transport to provide robust high BW link between application and userNew Wireless technologies are delivering service to remote regionsBroadband is replacing dial-up to provide high speed accessNGN Core being deployed to support multimedia servicesFixed Mobile Convergence promises seamless connectivity regardless of locationIPTV is enabling new multimedia applications over Broadband now

Market/Industry TrendsConvergence of communications & entertainment - Voice, Data, & VideoAggressive growth of broadband subscribers globallyIncreasing need for higher end-user bandwidth-for Multimedia ServicesTransition from network-centric single services to subscriber-centric offering

Services Value chainService Bundling - Basic Voice-driven to multimedia service-driven business model

Basic services- Voice, Internet accessValue Added services- VMS, SMS, UMS, CRBT, IM, Presence, LBSMultimedia Services – IPTV, IP Surveillance, Video Conferencing


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Convergencehappening everywhere &

traditionally isolated markets are overlapping

ConvergenceEntertainmentCommunication

InformationData Multi-Media

Voice

Telecom Internet

Broadcast

ComputerElectronicHome App.

Terminal

Convergence inTelecommunications

Network

Service

Terminal

•IP based•Heterogeneous environment•Ubiquitous

•Continuity of services & content•Broadband based•Supporting mobility

•Convergence faculty•Smart facility•User friendly interface

Industry/Service

Terminal

Network

Media


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NGN Concept

NGN is a concept for defining & deploying networks, which due to their formal separation into different layers & planes and use of open interfaces, offers service providers a platform which can evolve in a step-by-step manner to create, deploy & manage innovative services.

NG Architecture : Service oriented, layered (transport, control,

application)

NG Services : Converged (quad play- voice, data, video & mobility)

NG Access : High speed (Broadband) IP based connectivity

(ADSL,VDSL, WiMax, Cable TV, FTTH)

NG Transport : Ethernet, IP-MPLS, RPR, T-MPLS

NG Mobile : 3G+, 4G

NG Internet : IPv6

NG Interconnect : Capacity and Quality based

NG Licensing : Unified, Converged


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NGN Converged System Architecture

PSTN/PLMN &

IN(CAMEL)

PHSPBX

V5 AN

IP phone/IAD/IP TV Console

POTS/DSL

AMG iUMG SGW TMG WiMAXGateway Layer

Core Switch

Control Layer

Service Layer

NMS OSS

OSA Parlay Gateway

Parlay API based AS

SCP (IN&CAMEL)

VAS Servers

SLR (VLR/HLR) Pre-paid Server SoftSwitch Call Servers

Managed IP Network

3rd party AS

iMS CDMA2000IP AccessGW

ASN

BS

CPE

BSC

BTS

Unified Core Network Solution for all Voice Applications


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CS-P

SG

iUMG

SLR

M3UA M2UAIUA

H.248

NGN Advanced Service Architecture

PSTN/PLMN

Parlay Gateway

H.323 Network

IP-TK

CAP/INAP

SIP/SIP-T

SIP/SIP-T

ISUP/PRI

OSS

NMS

iNumber iSecretary VPN Video Conference ……

SIP AS

FMC Calling Card Video Call Voice Mail Instant Message …...

Short Message MCN Location Service Mail Service C-Mode ……

mS

ervice

2G/3G Network

mSwitch Network

SIP/SIP-TCAP/INAP

ISUP/PRI

Core Switch Network

UT iSCPExternal SCP

Pre-paid Calling Card Toll Free

Standard IN/CAMEL ServicesIN

/C

AM

EL

SIP Network

H.323

VAS Server

HTTP/SNSP


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Advanced Multimedia Services

SmartPhone (UTSmart) SIP Based Multimedia SoftPhone

Unified Centrex

Continuity FMC (Fixed/Mobile Convergence) Solution

Conferencing- Voice, message, multimediaVideo Calling & Video Conferencing

iNumber- Find me Follow me

CRBT

Unified Messaging- Voice, Email, Fax, Video

Quadruple Play- Voice, Data, Video & Mobility

Voice over Broadband

Presence & IM

PSTN Emulation Services


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Smart Soft Phone

Support on Microsoft Windows 98/2000/XP

Embedded SIP soft phone for voice and video calls

Voice codec – G.711a, G.711u, G.729

Video codec – MPEG4, H.263

Phone address book

Friendly GUI for service activation and deactivation

Automatic update of call records for call history

Auto answer and voice message recording/replay

SMS support from/to NGN/PLMN/PSTN subscribers

Security with password protection (MD5)

Multiple call server configuration

Support of automatic upgrade from HTTP server


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Enterprise Access SolutionUnified Centrex

PSTN

PBX SHPRI

SoftSwitch1

05xxxx 06xxxx03xxxx 04xxxx

Centrex SZ Centrex HZCentrex BJ

SoftSwitch2 SoftSwitch3

IP Core ISUP

Provisoning Center

Parlay Gateway

Parlay API

iWAC AS

Centralized mService Center

Enterprise Access solution: Multi-Access based solution for Enterprise customers One System Virtually support multi Enterprise Users. Wide Area Centrex supports multi-site offices of one Enterprise Customer. Mixed Centrex Group (NGN user, PBX and mobile Centrex) [In Roadmap] IP Phone/PHS Phone (as well future’s other Wireless Access Terminals) Roaming among different office


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CALL FAILED

PLEASE TRY

AGAIN!

FMC-Business Drivers

Many households today have at least one cell phone.In these households estimated 60% of long distance calls and 36% of local calls take place on mobile phone at home (Yankee Group)

14% of users use cell phones as their primary line (Yankee Group)Additional 26% of users are ready to switch as in-building coverage improves

Over 50% of users place mobile calls when they are at home or office (Wireless Review)

WiFi exists or can be supported in both placesTraffic on mobile network has been increasing causing QoS problem and hence subscribers’ churnPressure to reduce tariff for voice services

“Fixed” broadband availability is growing at a rapid pace - double digits in most cases

VoBB provides new revenue stream for Service Provider, and also give a low cost alternative to carry mobile voice trafficLeverage low fixed line asset cost to support the mobile voice application

Users need to access services seamlessly regardless of their location, active device or the network access methodLower CAPEX, Lower OPEX, Higher coverage and quality


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Driving Forces

Consumers like mobile phones And all of them are not using just for mobility In >50% cases used for portability, not mobility.

Consumes demands low cost for voiceBroadband is getting widely deployed

Voice over broadband is not only new revenue stream for SP, but also the low cost alternative to carry mobile voice traffic

Leverage low fixed line asset cost to provide the mobile voice application

Lower CAPEX, Lower OPEX, Higher coverage and quality

=> Fix Mobility Convergence


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With FMC, users can access the best available service whether they have mobile coverage (e.g. GSM, CDMA),

Wi-Fi/fixed-line coverage (e.g. Wi-Fi SIP over broadband) or a combination of both.

WiFi/GSMDual Mode

PHONES

MOBILENETWORK

IP COREMobile

Public802.11/WiFi

Home

802.11/WiFi

Office

IP CORE

PSTN/SS7NETWORK


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Continuity - Fixed Mobile Convergence

MOBILENETWORK

MSC

HLR /VLR

FIXED / WIRELINENETWORK

WiFi/GSM

Dual Mode Handset

WiFi/GSM

Dual Mode Handset

EXISTINGSOFTSWITCH

EXISTINGMEDIA GATEWAY

PSTN/PLMNNETWORK

SS7NETWORK

Inter-Roaming betweenWiFi domain and mobile network

• CS (Call Server)

• SG (Signaling Gateway)

• SLR (Subs Location Regiser)

• PSC (Processing Server for CDR)

MAP over SS7


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Solution fit for different Operators

MNO (e.g. Cingular, Sprint)Improve the mobile coverage with low cost WiFi- Residential / Enterprise / Public hotspotPartner with Cable/Fixed Op to offer total package- Triple or Quadra-play

NGN Operator (e.g. Vonage)Enhance their current offerings with mobile capabilityPartner with MNO as whole sell (MVNO) or roaming

Integrated Service Provider (e.g. Brazil Telecom)In-house Mobile and Fixed line operationFMC allows them to use fixed line infrastructure to offer mobile serviceThe combined infrastructure provides lower OPEX ratio comparing with pure MNO

Cable Operators (e.g. GCI, Comcast)Partner with MNO to offer FMCNatural extension from Triple-play to Quadra-play – Voice, Data, TV/Video, Mobile

FMC-Enabler (e.g. VeriSign)Host equipment and provide FMC backend capability to other NGN, MNO operatorsWork with multiple small/tier 2/3 operators – Don’t acquire FMC subs directly


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FMC Solution Advantage –Service Provider Perspective

Converged service infrastructure by consolidating the voice services between the fixed and mobile networks

Mobile coverage (GSM, CDMA) – Offering mobility, convenience and ubiquityWi-Fi SIP over broadband – Offer better quality, lower cost and feature rich capabilities

Enhancement of Service QualityStimulates the new service opportunities to increase ARPUCapability to quickly include value added services - VMS, SMS, CRBT, FMFM, Centrex..Provides the service differentiators and creates the service stickiness to lower the churn rate

Reduction in CAPEX/OPEXby offloading the traffic from cellular to WLAN and spending less on infrastructure buildout

Single set of user credentialsUsing GSM IMSI method authentication for both networks simplifying the user management

System Reliability and Scalability backed by Real DeploymentBased on the proven NGN (mSwitch) platform (and its IP core)The single mSwitch solution implementation serves over 2.1 m subscribers

Architecture compliant with 3G/IMSFuture-proof via open standards


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FMC Solution Advantage-User Perspective

FMC enable users to access their voice and data services transparently, regardless of their location, device, or network-access method‘One Number’ and ‘One Phone’ serviceWiFi SIP or GSM/CDMA coverage

The user will be able to initiate and terminate calls at any place

Seamless RoamingThe user will have non-interrupted call sessions when moving from one network to another

Uniform and consistent service accessibility & behavior independent of access

especially attractive for enterprise users to extend corporate VPN to cellular networks.

Reduced monthly charges & convenience of a single billSimplified and Unified service plans and payment schemes. A single always reachable phone number (Option for dual number)

Availability of new servicese.g. IM, Unified VM, SMS, Unified phone book, CRBT….


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FMC Value Proposition

Value Consumers Enterprises

Price √ Reduce/Simplify monthly bill√ Free WiFi Calling

√ Consolidate/Reduce service plans for better volume

√ Route calls free via PBX/VPN

Convenience √ Simplified service plan√ Same number everywhere

√ Single always-on number√ Same phonebook everywhere

Quality √ No more missed calls when out of range√ No more garbled or dropped calls inside buildings

Advanced Features

√ IM everywhere√ Instant conferencing√ Fast music downloads

√ Mobile desktop√ Abbreviated dialing everywhere√ Fast file transfer everywhere

Service providers can now:• Reduce churn by providing single number NGN & wireless service to customers• Increase stickiness through advanced services• Generate new revenue through supporting roaming agreements• Future-proof via open standards• Maintain a single cost-optimized network infrastructure


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No Impact to Existing Networks

To Existing NGN Networks:A functional module addition to the existing SoftSwitch and backend application

Able to use the existing NGN for call processing and routingNormal NGN users are still served by existing infrastructure

Zero impact of the FS additionAll (home/visiting) FMC users will be served by the FMC-FS

Registration, authentication, roaming, call processing, handoverFMC-FS requires access to FMC user profile data

HSS (Home Subscriber Server) model of IMS

To Existing GSM Networks:GSM Homed FMC users appear to be regular GSM usersNGN Homed FMC users appear to be visiting GSM usersFMC-FS uses standard roaming Interface to the GSM Network


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Video Conference Service

CS-P

ISUP

mSwitch Domain 1

SIP SLR

Parlay API

Conference AS

CS-P

mSwitch Domain 2

SIP SLR


iAN8000 iAN8000

Video Conference Service: Multiple types of conference Multiple conference reservation methods Automatic notification to conference

participants Rich set of conference management and

control functions

ISUP

Parlay Gateway

PSTN/PLMNPSTN/PLMN


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PSTN to NGN Migration Case StudyBackground

A leading tier 1 carrier in PhilippineOwning 2m fixed & 22m GSM mobile customers as of Q2 2006

A public company listed in NYSETotal market cap of US$7.8B as of Sept 2006Total revenue US$2.5B in last 4 quartersEBITDA US$1.6B in last 4 quartersOperating margin 37%

A fast growing service provider in Asia Provides fixed line, GSM mobile and broadband data service to both residential and enterprise customers

Problem StatementHow to sustain and grow the fixed line service?

Lots of population without telephone serviceLots of business users demand more service

How to increase the ARPU leveraging NGN/IMS?IPTV? FMC? Triple-play? Quadrupled-Play?

How to lower the OPEX?Real estate expense in the big metropolitan area?Power consumption?Human resource required for operation?

How to manage EOL/EOS of the aged TDM switches?The cost of maintaining is unbalance with the cost of buying new


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UTStarcom SolutionPSTN Emulation Subsystem – PES

Provide services to green-field customersReplace the existing TDM switch – total 7 models in place

mSwitch as the core SoftSwitch + Gateways + Backend office applications

iAN8000 as the accessCombination of DSL, DLC and VoIP AG

Foundation for FMC and IPTV in the future

Phase 1: Started with 150K NGN lines capacityNetwork installation and migration planning for 3 monthsFirst TDM switch replacement/migration in March 2006 Adding customer via both old switch migration and green field expansion

Service extension to CentrexTargeting under served enterprise customers

Phase 2: Network expansion to total of 500K NGN linesContract signed in later 2006Network fully deployed

Phase 3: Planning for total of 1.5M NGN lines in 2008 Total 5m NGN lines planned in next 3 – 5 years150+ CO sites replaced by 3 NGN SS sites


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Migration Benefits

CAPEX SavingsCentral Office (CO) consolidationSimpler network with fewer types and pieces of equipment

OPEX Cost Savings- 80%Operation and Maintenance cost reduction

Reduced power consumption- 94% (Reduced air-conditioning requirements)Faster provisioning of services

Floor Space Savings- 92%Reduced space requirementsConsolidation of cabinet areas

Improvement in “time-to-market” for new services- 90%Faster introduction of new services Increase in Revenues

EOL managementEnd of support to critical TDM components- High cost of vendor supportStop manufacturing of componentsSalvage components to support in-house repair of modules when they run out of spares.


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Blueprint of One Real CO Space Reduction

19 x 11 =209ft2

6 x 4 =24 ft2

48 x 29 =1392 ft2

6 x 34 =204 ft2

Total Space= 1392+209+24= 1625 ft2

Total Saving in One CO =1421 ft2


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Greatest Experience: Cut-Over Procedure

IP, NGN, and PSTN inter-connect infrastructure configured and tested

AGs installed, wired on MDF, configured, and qualified

Migration of Digital Loop Carriers Retrofitting the access gateways in existing DLC cabinet

Consolidation of cabinet areas

Sample subscriber data populated, provision ADSL Sub

Number migration set up and tested for lines and trunks

Bulk sub data migrated and tested again for all features and billing

MDF- isolation pin switched so that sub lines are switched from legacy switch to AGs (a couple of minutes)

PSTN tandem switches re-route traffic from legacy switch to NGN C4 (1 minute)


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Thank You

This presentation is provided by UTStarcom for planning purposes only. Changes in market conditions and/or other changes in circumstances, can affect the assumptions upon which this presentation was based or otherwise impact the contents of this presentation and therefore such contents cannot be guaranteed and are subject to change at any time without notice. Nothing contained in this presentation shall be deemed to create, modify or supplement any commitments or warranty made by the company, whether expressed, implied or statutory, in connection with the products, technology and/or services referenced herein.*Some features may require addition development and may not be ready for immediate implementation.


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iNumber – Find Me Follow Me

CS-P

ISUP

mSwitch Domain 1

SIP SLR

Provisoning Center

PSTN/PLMN

Parlay Gateway

Parlay API

iNumber App.

CS-P

mSwitch Domain 2

SIP SLR


iAN8000 iAN8000

iNumber is UTStarcom solution name for Find-Me-Follow-Me service

Subscriber registers one number as a master number

Then associates other numbers to the master number- home, office ...

Whenever the master number is called, the system will ring sequentially all the numbers

Flexible number bundling among SIP user, PSTN POTS, PLMN MSISDN etc.

Dial one number to reach all the bundled number

Support sequential and simultaneous ringing options

Activated/deactivated through web/IVR


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CRBT

OSSNMS

CS-P/iUMG #1

TS

(SLR, PSC) PSTNPSTN

NGNAccess

NGNAccess

UT CRBT Suite

CRBT media library

User web portal/OSS

CRBT media/signaling

serverNFS 1

4

2

5

3


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Sri Lanka ScenarioPopulation– 20 million Tele density ~ 50%.

* Based on forecast provided by Infonetics Research in Nov 2007

NGN market in Asia provides a potential for a cumulative operator capex opportunity of approx. $3.9B* over 2007-2010 and $0.9B* in 2008

Competition remains intense but rational. Strict profitability focus in Operators.All Operators considering NGN deployment and have issued RFP/Tenders

Service provider

Type of services

Subscribers

SLT Wire line, CDMA PSTN – 1.35m CDMA ~ 700k

Dialog GSM, CDM 5 m

Suntel WLL 700k

Lankabel WLL 1m

Mobitel (SLT GSM) GSM, HSPA 1.5m

Tigo GSM 800k

Hutch GSM 700k


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NGN Market Drivers

TDM switches facing EOL or reaching capacity saturation

Explosive growth in Internet traffic

Intense competitionTelco vs. Cable vs. Satellite vs. Wireless vs. NGN

Need for Improved Business ModelOPEX savings and top-line revenue growth

Need for Service Differentiation

Ease in offering new services (VoIP, IPTV, FMC)

Time-to-market and ability to provision services quicker

Integration of network resulting in huge network cost savings

Documents

Colombo, Sri Lanka, 7-10 April 2009 Evolution of NGN infrastructure for Multi-media applications & FMC Ashwani Kumar Director, Sales Engg UTStarcom, India