D2T4S3_Jim_Hennessey

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					Providing Integrated Services
        Over Copper & Cable
                 February, 2001

                It’s About Time.
Overview

• Today’s Topic: Providing an
  Integrated Services Package
  Over Copper and Cable
• What’s Cool About
  Integration
• Opportunity for Integrated
  Services
• Implementing Services
• Strategic Considerations
What’s Cool About Integration

• Integration future proofs the SP’s
  business
• Realizes the service providers’
  dream: One connection; multiple
  revenue streams
• Provides ARPU protection
• Keeps SP on favorable price and
  margin curves
• Aids Customer Retention
Integrated Services Opportunity

• Voice
• Security:
  – Firewall/Virus Protection
  – Filtering
  – VPN’s
• Messaging
  – Translation
  – Integrated
• Video
  – Mail
  – Conferencing
Opportunity Con’t

• Collaborative Work
  – Virtual Meeting
  – Shared Whiteboard
• Web Design/Web Hosting
• Caching/Peering
• ASP Services
• ECommerce
Opportunity

• Rough total for all these is in
  Multiple Billions of Dollars
• Service integration assures
  continued participation as
  more and more of everyday
  life migrates to networks.
Implementing Services
                            Voice CPE


                                                ADSL with “derived” voice
                        Standard ADSL

                                               



    Data:
Internet, etc.




                                                 Data:         POTS     ADSL Line
                                ADSL Line    Internet, etc.
                 POTS

                 –Up to 16 simultaneous voice channels on a single copper pair
                 –Soft provisioning of additional voice channels - no truck roll
                 –Integrated voice and data solution
                 –Focused on SME and high-end residential market
Voice “Bundles”

• SOHO and small businesses
  – Package high speed data and multiple voice
    lines
  – PBX/Key systems attached to/integrated into
    modem
  – Small Centrex groups
• Residential
  – Package of high speed data and multiple
    voice lines
  – Home working environment (PC, Phone, Fax)
  – 2nd and 3rd line (pairgain)
     • E.g. Install for 2nd line POTS and be data
       ready
                         Voice Gateways


Service providers                 Access providers               End users

               PSTN


          Service          Service            ASAM
        management       management
                                              GW         ...
                                                                       ADSL-NT
Isp’s                                                           ...
                        ATM or FR pipes
                                                          Mini-RAM
                         IP-tunnels
         ...
Corporates            Data backbone BAS       ATM edge   ASAM

                                GW                                     ADSL-NT
                                                                 ...
                               ATM backbone
                     Security:                     DSL Access: PPPoX with L2TP tunneling


                                                               CoSine IPSX

                                                           CVR


            DSLAM


DSL ATU-R
                     Shasta BSN
                                                                             IPSec Tunnel
                                        L2TP Tunnel
                                                                                             ATM
                                    ATM                                                      Core
                                   Access
                                                                    SP VR
                          LAC
DSL ATU-R
                                                 STM-1




                            LAC                          LNS

            PPPoX                 L2TP Tunnels                                   IPSec Tunnels


   Tunnels PPPoE and PPPoA sessions through to the correct CVR
   One L2TP tunnel for each enterprise, with the ability for multiple PPP
    sessions per tunnel
                           Leased Line Access: Direct
                                                              CoSine IPSX

                                                            CVR


               Channelized T1
                or fractional
                  service
CPE
            Local
           Access                                                           IPSec Tunnel


                                  Metro                                                     ATM
                                  Loops                                                     Core
                                                                   SP VR


CPE         Local
                                          Channelized DS3
           Access



                                PPP                                             IPSec Tunnels



     Timeslot groups for each customer is mapped from the Channelized DS3
      through to their respective C-VR.
      IP Services with CoSine solution


• IPSec VPNs
• Managed Firewalls
• VPDN for secure dial
• Extranets
• Frame Relay Integration
   Irrespective of method used, once the customer traffic
    reaches their CVR, value add IP services such as VPNs,
    Firewalls, NAT, Anti Virus, etc can be provisioned exactly the
    same way for each subscriber
Putting It All Together
      Trends: Business Users (1)
                                          Revenues Managed Data
                                           Services (UD$ billions)
    Decentralizing                                                             8
                                                                               7
                                                                               6
     Outsourcing                                                               5
                                                                               4
    Intra-/Extranet                                                            3
                                                                              2
Supply Chain Integration                                                      1
                                                                              0
                                                                        '03 '04
                                                        '01 '02
                                                '00
                                       '99


                                        ASP                           VPN
      Access to
 advanced services                           Web Hosting
   for SME/SOHO                                                     Virtual
                                   Roaming
                                                                    Office
                     Source: Asia/Pacific Telecom Network Services Market 1999-2004, IDC
    Trends: Business Users (2)

                         More than 60% of APAC
 Voice-Data            companies are integrating
                        or will integrate data and
Convergence                        voice.


    A large share of these companies will
   use Voice over Packet to communicate
    across the supply chain (suppliers,
     customers and channels/resellers).


                        Source:WAN Manager Survey - Jul 2000, IDC
                            Business Services

End-user applications                               Enterprise
increasingly need more                            Large Business
     network services
which can be provided                                 Access
                            VOICE VPN                  Node                       Small Office
       by network           PRI, Centrex, VoIP
        operators
                                                                                  Home Office
                            DATA VPN
                            Internet, Intranet,
                                                                         Access
                            Security, Privacy, Management                 Node
            Switch/Router   Outsourced Firewall, Routing
                            E-Commerce, Co-working

                                                                  WW Local connect (roaming)
                                                                  Single Authentication
     VPN, Security, Privacy
           AAA, Billing
       Policy, QOS, SLA
     VoIP, Fax/IP, Transport
                                                         Access
                                                          Node
                                                                                      Mobile
                                                                                  Telecommuter
                                Residential Services

Content Application Provider End-user applications
        Server farm    increasingly need more network services
                                                                                    Voice
                                  which can be provided by network operators
                                                                                    POTS, ISDN, VoIP
                            Switch/Router
                                                                                    Dial up Internet
                                                                                    Always on Internet

                                                                                    Videoconference




   Web hosting,
                                                                                            Private
   E-mail, E-commerce                                                                      Residential
                                                                               Access
   S&F Fax/IP,                                            VPN, Security, Privacy
                                                                             Node
   Unified messaging                                           AAA, Billing
                                                              PPP, tunneling
   Audio/Video Streaming                                   IP pool management
   Interactive Digital TV
                                                         Remote Access Services
                                                         RT Fax/IP, VoIP, Transport
Strategic Considerations

• When ?
  – Now
  – Plan for Migration
• What is proper sequence ?
  – Start with most likely to be broadly
    adopted
  – Build critical mass
  – Differentiate to vertical need
  – Take a prudent chance
Strategic Considerations

• Functionality at Edge or
  Core?
  – What works when your customers’ need
    it
  – What will continue to allow you to
    differentiate
  – What suits your organization’s skill set
Summary

• Integration can help future
  proof an SP’s business
• Integration can begin today
• Take prudent risks to
  differentiate toward your key
  segments

				
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