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1© 2001, Cisco Systems, Inc. All rights reserved.
Deploying Residential SIPService over Broadband Access
Maurice Duault
© 2001, Cisco Systems, Inc. All rights reserved. 2© 2001, Cisco Systems, Inc. All rights reserved. 2© 2001, Cisco Systems, Inc. All rights reserved. 2
Agenda
• Environment
• Architecture
• Business Case
© 2001, Cisco Systems, Inc. All rights reserved. 3© 2001, Cisco Systems, Inc. All rights reserved. 3© 2001, Cisco Systems, Inc. All rights reserved. 3
Is SIP ready for residential service over broadband ?
STOCKHOLM, Sweden August 22, 2002 - Cisco Systems today announced that its technology will help enable the launch of a new residential telephone service by Bredbandsbolaget (B2), a next-generation Ethernet over fiber
broadband provider reaching 220 000 households, which will provide a real alternative to the public switched telephone network (PSTN)-based calls in the residential market. With this end-to-end residential voice service B2 will be offering a competitively priced, fully functional telephony service using Voice over IP (VoIP), to its existing customers, as well as to new customers outside its established ISP service. B2 has opted to deliver calls over its Metro Ethernet broadband network using Session Initiation Protocol (SIP), a flexible communications standard developed for the Internet and providing a simple, stable and cost-effective platform that can be used to integrate new services such as unified messaging in the future. video, which also makes it is ideal for the kinds of integrated services B2 is contemplating in the future."
http://newsroom.cisco.com/dlls/prod_082202.html
© 2001, Cisco Systems, Inc. All rights reserved. 4© 2001, Cisco Systems, Inc. All rights reserved. 4© 2001, Cisco Systems, Inc. All rights reserved. 4
Metro Ethernet technologies
7600/6500/4000
3550/4000
3550/4000
3550/4000
GE
10720/7600
12000
DPT/ RPR
SDH/WDM
ONS 15000
ONS 15000
© 2001, Cisco Systems, Inc. All rights reserved. 5© 2001, Cisco Systems, Inc. All rights reserved. 5© 2001, Cisco Systems, Inc. All rights reserved. 5
Metro market segmentation
Utilities, MunicipalitiesUtilities, Municipalities• Ducts Ducts • RelationshipsRelationships• Named accounts - SMBNamed accounts - SMB
• Existing Fiber Existing Fiber • In-building wiringIn-building wiring• Protect TOP 500, then expandProtect TOP 500, then expand
• TenantsTenants• Value of property increaseValue of property increaseReal Estate DevelopersReal Estate Developers
PTTsPTTs
CableCos and MSOCableCos and MSO
NSPsNSPs
• Access infrastructureAccess infrastructure• ConsumersConsumers
• Service FocusService Focus• Triple play: Video/Voice/DataTriple play: Video/Voice/Data
© 2001, Cisco Systems, Inc. All rights reserved. 6© 2001, Cisco Systems, Inc. All rights reserved. 6© 2001, Cisco Systems, Inc. All rights reserved. 6
Common requirements
IP Core
• Provide signaling and call control for VoIP services
• Provide carrier class gateways between TDM and VoIP
• Provide regulatory features
(country-dependent)
• Provide end user access interfaces (POTS,
PRI, IP Phones)
• Provide provisioned, managed and
networked services
• Provide enhanced service platforms(VXML, IVR, Presence, etc)
© 2001, Cisco Systems, Inc. All rights reserved. 7© 2001, Cisco Systems, Inc. All rights reserved. 7© 2001, Cisco Systems, Inc. All rights reserved. 7
Alternative Approaches
Inside-Out Approach
• Start with network core and build out to edge
• PSTN element replacement is the operative paradigm
• Capture the network, then the subscriber
• Endpoints are dumb
• Centralized call control
• PSTN-centric architecture
• Development focus on legacy integration
• Opex reduction-driven
Outside-In Approach
• Start with network edge and build in to core
• PSTN service substitution is the operative paradigm
• Capture the subscriber, then the network
• Endpoints are intelligent
• Distributed call control
• IP-centric architecture
• Development focus on new services
• Profitable revenue-driven
© 2001, Cisco Systems, Inc. All rights reserved. 8© 2001, Cisco Systems, Inc. All rights reserved. 8© 2001, Cisco Systems, Inc. All rights reserved. 8
Why SIP
• The distributed nature of SIP lowers the barrier to entry
• Standard
• Internet friendly
• Integration of data, voice, video, IM and presence applications
© 2001, Cisco Systems, Inc. All rights reserved. 9© 2001, Cisco Systems, Inc. All rights reserved. 9© 2001, Cisco Systems, Inc. All rights reserved. 9
Agenda
• Environment
• Architecture
• Business Case
© 2001, Cisco Systems, Inc. All rights reserved. 10© 2001, Cisco Systems, Inc. All rights reserved. 10© 2001, Cisco Systems, Inc. All rights reserved. 10
Reference Network ArchitectureDistributed switching
ASP
Internet
IP
Enterprise IP Tel
GK
MultiserviceVPN
H.323SIP
CarrierInfrastructure
Infrastructure
GK
GK
GK
LCRLILNPIN Billing
PGW
PSTN
PSTN Termination
SLT
MG
GSMUMTS
Mobile TerminationSLTPGW
MG
PGW
Residential VoIP over BB
IP
ProxyGK
MGC
© 2001, Cisco Systems, Inc. All rights reserved. 11© 2001, Cisco Systems, Inc. All rights reserved. 11© 2001, Cisco Systems, Inc. All rights reserved. 11
Ethernet Access• Ring Topology• Star Topology
GSR
Operations and Management
NMS Performance, Fault,
Provisioning Servers
BILL
Care
AAA
Video/Voice Services• Cisco Call Control• Partner Call Control • Video Content PSTN
ETTx Network Architecture
End CustomerDeployments
CPECPE
PBX
VoIP GW
ITS SMB Residential - MDU
V
V V
CPE
STBSTB
IP Core
6500 2950/35504000
GKGK
App Svr
AAA
SS7
VideoContent
PGW GK
GK
CSPS
SVR
BTS
© 2001, Cisco Systems, Inc. All rights reserved. 12© 2001, Cisco Systems, Inc. All rights reserved. 12© 2001, Cisco Systems, Inc. All rights reserved. 12
SIP Residential configuration
Reference Transport Infrastructure
IP Network
PSTN
Broadband Network
ATA VoIP GWsRTP/voice
VoIP Network
InfrastructureZoneResidential Zone
VoIPInfrastructure
AnalogPhones
PGW2200
SIP
CSPSSIP
PSTN
SLT SS7 STP
IMT
MGCPIPPhones
SoftPhones
V V
© 2001, Cisco Systems, Inc. All rights reserved. 13© 2001, Cisco Systems, Inc. All rights reserved. 13© 2001, Cisco Systems, Inc. All rights reserved. 13
Example of SIP Residential Services
Basic Calling
Voice, Fax
Network provided announcements
Access control
Line Features
Call forward unconditional *
Call forward on busy *
Call forward on no answer *
Calling Line ID Presentation *
Calling Line ID Restriction *
Call by call selection of CLIP/CLIR *
Redial on busy *
Last missed call automatic
dialling *
Blocking call to GSM / Int #
Call Waiting *
3 Party Calling *
Call Hold *
Emergency Call #
Local Number Portability #
* Implemented by the CPE
# Implemented by the PGW2200
© 2001, Cisco Systems, Inc. All rights reserved. 14© 2001, Cisco Systems, Inc. All rights reserved. 14© 2001, Cisco Systems, Inc. All rights reserved. 14
Cisco Analog Telephony Adaptor(ATA)
• Integrates analog telephones and fax machines into a VoIP network
• Supports call waiting and call forwarding(unconditional, no answer & busy)
• Provides ability to select CLIP or CLIR on a per-call basis
• Registers with SIP Registrar server
• Supports DHCP, TFTP, DNS, NTP, HTTP Digest
• Provides 2 RJ-11 ports and 1-2 10/100 MB Ethernet ports
Cisco ATA 186 Cisco ATA 188
© 2001, Cisco Systems, Inc. All rights reserved. 15© 2001, Cisco Systems, Inc. All rights reserved. 15© 2001, Cisco Systems, Inc. All rights reserved. 15
Auto-provision Residential - VxML
• Plug in Phone to ATA
• Plug in ATA
• DHCP/BootP Default config
• Pickup phone, config will only dial VxML application
• Enter your details
• Choose phone number
• Told to power cycle ATA
• ATA is now provisionedIP QoS
CarrierCarrier
VxML on GatewaysVxML on Gateways
Auto-Provisioning Script
© 2001, Cisco Systems, Inc. All rights reserved. 16© 2001, Cisco Systems, Inc. All rights reserved. 16© 2001, Cisco Systems, Inc. All rights reserved. 16
Cisco SIP Proxy Server(CSPS)
• Provides call processing functionality via Redirect or Proxy server
• Manages end point registrations via Registrar server
• Provides availability and scalability via ‘farming’
• Lots of external interfaces:
Enum: Phone number to URL translation
LRQ: Integration with H.323 networks
RADIUS: Authentication and Accounting
• Supports DNS, NTP, HTTP Basic/Digest, IPSec, UDP/TCP, RADIUS
• RFC 2543 compliant
• Operates on Linux and Solaris platforms
© 2001, Cisco Systems, Inc. All rights reserved. 17© 2001, Cisco Systems, Inc. All rights reserved. 17© 2001, Cisco Systems, Inc. All rights reserved. 17
Cisco PGW 2200 PSTN Gateway
• Provides the bridge between legacy PSTN networks and packet networks
• Supports 600 DPC, 6 OPC, 192 signalling links, 256 MG
• Manages billing for off-net calls, local number portability and emergency numbers
• Provides called/calling party analysis, black/white list screening, routing algorithms, number normalization and many other features
• Supports SS7, SIP, H.323, MGCP, DTMF Relay, DNS
• RFC 2543 compliant
• Operates on Solaris platforms
© 2001, Cisco Systems, Inc. All rights reserved. 18© 2001, Cisco Systems, Inc. All rights reserved. 18© 2001, Cisco Systems, Inc. All rights reserved. 18
Cisco Media Gateways
• Provides the bridge between legacy PSTN networks and packet networks
• Supports VXML-based IVR for subscriber provisioning (development of scripts is responsibility of customer)
• Supports SIP, H.323, MGCP, DTMF Relay, T.38 Fax, DNS SRV
• Supports digital (T1/E1 PRI, T1 CAS, E1 R2) & analog (E&M, FXO, FXS) PSTN interfaces
• RFC 2543 compliant
• Includes 827- 4v, 2600, 3600, 3700, 5350, 5400, 5850, 7200, uBR925, CVA 122 platorms
© 2001, Cisco Systems, Inc. All rights reserved. 19© 2001, Cisco Systems, Inc. All rights reserved. 19© 2001, Cisco Systems, Inc. All rights reserved. 19
Agenda
• Environment
• Architecture
• Business Case
© 2001, Cisco Systems, Inc. All rights reserved. 20© 2001, Cisco Systems, Inc. All rights reserved. 20© 2001, Cisco Systems, Inc. All rights reserved. 20
5 2484
157224 250 262 271 274 283
Revenues
ETTx Business Case: Summary of Key Financials….
Operational expenditure
Capital expenditure*
* Including investments in working capital** WACC = 12%; Corporate tax rate = 35%; Perpetuity growth (after 15 years) = 2%
Source:ETTx model
2002 03 04 05 06 07 08
Free cash flow
Financing need: ~ 188Cash-flow positive Yr 6
NPV** ~ 184
09 10 11
2002 03 04 05 06 07 08 09 10 11
”
-10 -24-62
-106-144 -157 -161 -164 -163 -166
-29 -48 -54 -44-13
34 47 54 59 62
-21 -43 -64 -77 -75-37 -29 -27 -24 -23
Other Model Conclusions:-Most business cases can be shown profitable (EBITDA Positive) within 24 to 36 months-Healthy blend of business (SMB) and residential customers contributes to optimal business case-Business case improves with delivery of voice or voice/video services
EXISTING ATTACKER“FULL BLOWN ETTx
© 2001, Cisco Systems, Inc. All rights reserved. 21© 2001, Cisco Systems, Inc. All rights reserved. 21© 2001, Cisco Systems, Inc. All rights reserved. 2117
Only data Data/voice Data/voice/video
Services offered
To
p 2
5%
To
p 5
0%
10
0%
Co
vera
ge
of
cit
y (s
urf
ac
e)
Very effective to bundle voice and data while full triple play becomes less important at small coverageUSD Millions; Percent
EXISTINGATTACKER
RESIDENTIAL &BUSINESS
NPV* = 103 NPV* = 165 NPV* = 184
IRR = 18% IRR = 22% IRR = 22%
CF positive = 2007 CF positive = 2007 CF positive = 2007
Financing = 193 Financing = 164 Financing = 188
NPV* = 93 NPV* = 148 NPV* = 158
IRR = 19% IRR = 23% IRR = 22%
CF positive = 2006 CF positive = 2006 CF positive = 2006
Financing = 156 Financing = 134 Financing = 158
NPV* = 77 NPV* = 121 NPV* = 124
IRR = 19% IRR = 24% IRR = 23%
CF positive = 2006 CF positive = 2005 CF positive = 2005
Financing = 101 Financing = 85 Financing = 102
© 2001, Cisco Systems, Inc. All rights reserved. 22© 2001, Cisco Systems, Inc. All rights reserved. 22© 2001, Cisco Systems, Inc. All rights reserved. 22
Residential VoIP value propositionfor the Service Provider
• Bundle voice with data or video services over broadband access.
• Reduce churn with service bundling
• No need to deploy Class 5 TDM switches
• Drive broadband growth
• Integrate provisioning of voice, data or voice services
• Provide the same voice services over any broadband access technologies.
• Capitalize on a single VoIP infrastructure for residential, and business services.
© 2001, Cisco Systems, Inc. All rights reserved. 23© 2001, Cisco Systems, Inc. All rights reserved. 23© 2001, Cisco Systems, Inc. All rights reserved. 23
Residential VoIP value propositionfor the customer
• Fewer boxes at home
• Additional voice lines
• New telephony experience (XML applications, addition of video)
• Mobility
• Single bill for voice, video and data
• Cost savings specifically for on-net calls (depending on SP charging structure adopted).
© 2001, Cisco Systems, Inc. All rights reserved. 24© 2001, Cisco Systems, Inc. All rights reserved. 24© 2001, Cisco Systems, Inc. All rights reserved. 24
Conclusions
• SIP is ready for deployment
• Broadband access business case is improved with VoIP services
• VoIP infrastructure is available for residential and business voice services over broadband access
25© 1999, Cisco Systems, Inc.