MEF-LR-CE-Wholesale-Services-and-Interconnection-Trends-Webinar_FINAL (1)

11

Carrier Ethernet Wholesale Services & Interconnection Trends

31 October 2011

2Wholesale Ethernet Access Services 2Wholesale Ethernet Access Services

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


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

4Wholesale Ethernet Access Services

EducationStandards 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

5Wholesale Ethernet Access Services 5

MEF 14ATS

MBH

OAMFrame-work

ServiceAttributes

ENNI

SOAM

StandardizedCARRIER

ETHERNET

InterconnectedCARRIER

ETHERNET

AssuredCARRIER

ETHERNET

31 Carrier Ethernet Specifications

ServiceDefs

MEF 9ATS

Archi-tecture

Cloud,Backhaul

Some Key Specifications

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

On-Demand,

Automation

6

New Services for Wholesale Access

ENNIUNI

UNI Carrier Ethernet Access Network

Carrier Ethernet Service Provider

Many New Projects Including

Carrier Ethernet for Mobile BackhaulMEF on the Go

mobile app!

Carrier Ethernet as Ethernet Cloud Carrier

Cloud Provider(s)

Ethernet

Cloud Carrier

Enterprise Cloud

Consumers

Secure, DeterministicQoS enabled

Per application SLA No regulatory issues

IT Manageable

Optimizing the Backhaul


2010 2011 2012 2013 2014 CAGR

Wholesale Ethernet Service Revenue

48.2%38.4%

29.8%

>1G 1G - 100M 100M - 10M


1st 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


Accelerated MEF 26 interconnection of autonomous Carrier Ethernet networks

Business Model for Wholesale Access: Before

Market Condition Challenges Implementation Platform Interconnection Options

• Ubiquitous Carrier Ethernet

Off-net connectivity Time-to-market Disparate SLAs

Case-by-case provider agreements

Direct ENNIs

MEF 26 - ENNI Standard DefinedEmergence 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


Business Model for Wholesale Access: Today

MEF E-Access Service Type DefinedStandard 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 OfficeUNI

Ethernet Access Services

ENNI

Buying Providers’ On-Net Network

Enterprise HQ

Enterprise mid size branch end-user

UNI

ENNI

Ethernet Access ServicesLong Haul

UNI

SOHO, telecommuter, end-user

Cloud

ENNI

Carrier Ethernet Exchange


Business Model for Wholesale Access: Emerging

Dynamic Wholesale MarketService 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 OfficeUNI

Ethernet Access Services

ENNI

Buyers Platform Network

Enterprise HQ

Enterprise mid size branch end-user

UNI

ENNI

Ethernet Access ServicesLong Haul

UNI

SOHO, telecommuter, end-user

Cloud

ENNI

Carrier Ethernet Exchange

Cloud/CSP


MEF Retail Ethernet Services• UNI-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

UNI

UNI

UNI

Multi-point to Multi-point EVC

UNI UNI

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

ENNIUNI

Point-to-Point E-Access

Rooted Multipoint EVC

Ethernet Access Provider

Ethernet or IP Service Provider

New MEF Wholesale Ethernet Services• UNI-to-ENNI

*Technical Specifications targeted for ratification in 1/12.


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 EPLEthernet Private Line

Access EVPLEthernet Virtual Private Line

End-UserUNI


ENNI

E-Access

UNIEthernet Service Providers and Ethernet

Exchanges

Ethernet Virtual Connection (EVC)

End-User


Internet Access Service Example using Access EPLs

• ISP buys Access EPL1 from Wholesale Ethernet Access Provider– To interconnect Subscriber A Site UNI to ENNI

• Retail Provider buys Access EPL2 from Ethernet Access Provider– To interconnect Subscriber B Site UNI to ENNI

• ISP delivers Internet Access Service to Subscribers A and B

E-NNI


Internet Service ProviderUNI

UNISubscriber A Site

ENNI

Access EPL1

Access EPL 2

Subscriber B Site

Internet

E-Access services transparently supports IPv4 and IPv6


EVPL example connecting off-net locations using Access EPLs

• Retail Provider buys Access EPL1 from Access Provider– To interconnect Subscriber Site A UNI to ENNI

• Retail Service Provider sells EVPL1 to Subscriber– To interconnect Subscriber Sites A and C

• Retail Provider buys Access EPL2 from Access Provider– To interconnect Subscriber Site B UNI to ENNI

• Retail Service Provider sells EVPL2 to Subscriber– To interconnect Subscriber Sites B and C

E-NNI


Retail Service Provider

UNI

UNI

UNI

Su

bscrib

er Site CS

ub

scri

ber

Sit

e A

ENNI

Access EPL1

Access EPL 2EVPL2

Subscriber Site B

EVPL1


EP-LAN service example connecting off-net locations using Access EPLs from two different Ethernet Access Providers

• Retail Provider buys Access EPL1 from Access Provider1

– To interconnect Subscriber Site A UNI to ENNI1

• Retail Provider buys Access EPL2 from Access Provider2

– To interconnect Subscriber Site B UNI to ENNI2

• Retail Service Provider sells EP-LAN service to Subscriber– To interconnect Subscriber Sites A, B and C

Ethernet Access Provider1

Retail Service ProviderUNI UNI

Subscriber Site BSubs

crib

er S

ite A

E-NNI1

Access EPL1

Subscriber Site C

P2P Access EPLs used to deliver a Multipoint EP-LAN Service

Ethernet Access Provider2

E-NNI2

UNI

Access EPL2

EP-LAN


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


Wholesale Ethernet Access Service Challenges

Eth

ern

et E

NN

I

Eth

ern

et U

NI Video

Service Provicer

Ethernet Service Provider

IP/MPLS VPN

Provider

Wireless Service Provider

Cloud Service Provider

Internet Service Provider


Customer Premises

SONET

Ethernet rings

DS-3s

DS-1s

SONET

Ethernet

Ethernet

PDH Access

Network

Copper Access

Network

WDM

Access Networks

How do you deliver MEF E-Access services over diverse access networks?


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


GbE

PDH Access Network

EoS

EoCu

EoPDH

EoFENNI

Video Service

Provider

Ethernet Exchange Provider

IP/MPLS VPN

Provider



Copper Access

Network

Access NetworkEoX Access

UNI

IP DSLAM

Internet Service

Provider

Customer Premises

MSPP

Eo

X G

atew

ay

EoX Gateway enables MEF E-Access Services over diverse Access Networks

xDSL CPE

EoPDH NID

Ethernet NID

Packet Optical Networking

Platform

Packet Optical Networking

Platform

ENNIEthernet Service

Provider

Wireless Service

Provider

Cloud Service

Provider

Connect directly with

Retail Providers

Connect indirectly to Retail Providers through Ethernet

ExchangeEoPDH NID

Eo

X G

atew

ay

EoX Gateway makes different Layer 1 access

networks look like an Ethernet Access Network

Ethernet in, Ethernet out


2nd 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


• Footprint• Comprehensive

access portfolio

•Upfront set-up (e.g., backhaul costs)

•Ongoing operational costs

• Performance monitoring

• SLA support for customers

• Equipment selection

• Handoff options

• Key standards

AvailabilityCost

Efficiency

Operational Excellence

Technology

Provider

MP Wholesale Perspective on Provider Needs


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

PE

EoC

Retail Provider ATM

Retail ProviderEthernet

Retail Provider

MPLS

Retail Provider

IP

IP

MPLS

MPLS ICI (GigE)

Internet

XDSL

EoDS0

EoDS3

T1/BT1

DS3

ENNI(GigE)

X-changes


Nationwide EoC – Capitalize on Demand

Delivered Initial EoC Footprint

Build in Top Markets to ReachAdditional 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

2424


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 MonitoringMust support enforceable, measurable, end-to-end service (frame delay, delay variation, availability).

Service Management – Process IntegrationMust support normalized process human and system for process transactions

Reliability – Protection. Must provide protection: carrier class with geographical diversity

ENNIUNI UNI

Service Provider Service ProviderEnd User End User

OAM – COMPLETING THE PICTUREMEF Related Specs include:MEF 17 Service OAM Framework and RequirementsMEF 30 Service OAM Fault Management Implementation AgreementMEF 31 Service OAM Fault Management Definition of Managed Objects

2727

Q&A

Documents

MEF-LR-CE-Wholesale-Services-and-Interconnection-Trends-Webinar_FINAL (1)