23077 carrier ethernet-trends-challenges

Carrier Ethernet Strategies 2011 Slide 1

Premium Carrier Ethernet Services: Strategies for Cost-Reduction and Expansion Beyond the Metro

October 2011


Agenda

• Carrier Ethernet: Current Market Trends and Challenges

• Carrier Ethernet Deployment Strategies

• How RAD Addresses Market Challenges

• Conclusion


Carrier Ethernet –Current Market Trends and Challenges


1. Carrier Ethernet Beyond the Metro

• Ethernet services are now offered with a national and global reach, typically spanning multiple provider networks

• Requires effective service management tools for:– Uniform service attributes across the different networks

– Maintaining end-to-end SLAs with class of service (CoS) consistency

– Visibility

• Relevant standards are being developed by the MEF; Ethernet Exchanges available

• Evolving need for “wholesale demarcation” to terminate wholesale services and to separate wholesale and SP networks


2. Competition and Price Pressures

• Overall, higher adoption rate of Carrier Ethernet services increases competition– SPs need to differentiate offering

– Service price pressures in certain markets

• As a result, service providers need to lower TCO by driving down CapEx and OpEx– Network equipment vendors are

expected to assist


3. Network Convergence

• Save costs and simplify operations by using the same infrastructure for wholesale, business, mobile backhaul, and even cloud connectivity services– Tier 1 fixed-mobile operators or major

regional SPs with retail and wholesale networks

– Reduce complexity and TCO with unified purchasing, homologation, training, service production, OSS

• Multi-functional devices from a single vendor have become more attractive


4. Gaining Acceptance in New Territories

• Carrier Ethernet gaining popularity in new markets – Where EVPL offerings were not previously

considered

– First steps in moving from Best Effort broadband to Carrier Ethernet SLAs

• Primarily LATAM, Eastern Europe, some parts of APAC

• As competition grows, first carrier to offer premium services is likely to lead others

• Deployment strategies differ from those in mature markets


Carrier Ethernet Deployment Strategies


Carrier Ethernet Deployment Strategies: The CapEx/OpEx Divide

• Carrier Ethernet service deployment decisions made by SPs in mature markets are typically OpEx-driven – Sophisticated traffic management

capabilities are required for advanced, multi-CoS services and to maximize network utilization (oversubscription)

– Performance reporting is considered a must/premium by customer

– Ethernet access intelligence extended to the customer premises


Carrier Ethernet Deployment Strategies: The CapEx/OpEx Divide (Cont’)

• In APAC, CALA, Eastern Europe/Russia, where service providers are not yet SLA-driven, decisions are more CapEx-sensitive – Basic traffic management for limited

CoS levels offerings; carriers rely on fiber capacity to meet bandwidth requirements

– Performance reporting not a priority for customers/carriers, BUT:

Operations dept may require it

Regulator may require it (e.g. Russia)

– Ethernet access intelligence resides in POP/PE


How RAD Addresses Market Challenges


EtherAccess Portfolio

• A full selection of NTUs from a single-source supporting access speeds from 1 Mbps to 10 Gbps, and a carrier-class high capacity Ethernet aggregation platform

• Uniform Carrier Ethernet “look and feel” from the CPE to the PE – Common capabilities allow same service definition regardless of the

access technology

Packet SwitchedNetwork

GbE

SDH

STM-1/OC-3

10BT

100BT

EoPDH

n x EoPDHBonding

EoPDH10BTEthernet over PDH Ethernet over SDH/SONET

GbE

GbE

GbE

GbE

STM-1/OC-3

STM-4/OC-12

SDH/SONET

Ethernet over DSL

10/100BTn x EoCUBonding

10BTEoCUGbE

GbE100BT GbE

1000Sx

10GbE

GbE

Ethernet over Fiber

100/1000BT

– Same management, CLI and MIBs

– No issues of interoperability, configuration, OSS integration


Meeting Carrier Ethernet Challenges (1)

Challenge• Carrier Ethernet

extending from the Metro

Solution• Wholesale demarcation

• Seamless hand-off between wholesale and SP domains

• Complete visibility and control, CoS consistency across multiple access technologies and networks

• Service validation and turn-up with built-in test-head capabilities and enhanced loopback functionalities



Challenge:

• Increasing Competition

Solution:• Service differentiation

tools• Reduce carrier TCO

• Enable differentiation via premium services, coverage, vertical specialization, service turn up speed, connectivity options

• CapEx optimization:

- Cost-optimized design with an ASIC developed in-house

- Licensed-based port activation

- Multi-functional CPEs reduce number of devices

• OpEx optimization:

- Service lifecycle management and SLA testing capabilities reduce truck rolls

- Reduce inventory and minimize forklift upgrades with modular uplinks, UTP/SFP combo ports and multi-range power supplies



Challenge•Converged network

infrastructure

Solution•Support multiple

applications and topologies with a single platform

• Same platform can be deployed for business, wholesale and mobile services

• Common platform and management system simplifies production for operations and purchasing

• Support for TDM pseudowire

• Integral timing synchronization

• Same CPE can be deployed for fiber, PDH and DSL access



Challenge• Diverse requirements• The CapEx/OpEx divide

Solution• A choice of solutions

for various markets and customer needs

• For OpEx-sensitive markets:- Smart NTUs with best-of-breed Carrier Ethernet

capabilities to enable multi-CoS VAS with performance reporting and to drive down OpEx with fault management, testing and oversubscription

• For CapEx-driven deployments:- Smart aggregation to work opposite low-cost CPEs

• Seamless migration from basic to premium offerings


Conclusion (1)

Most notable trends today:• Extended reach and increasing competition present

Carrier Ethernet SPs with challenges concerning service management and visibility, differentiation, cost reduction, and network convergence

• Different deployment strategies dictate versatile solution alternatives with appropriate focus on CapEx/OpEx savings


Conclusion (2)

What RAD has to offer:• A comprehensive toolbox to support all

deployment scenarios, market segments, service requirements and access technologies

• No need to resort to “patched” solutions for different parts of the network or service, or when needs evolve

• Cost-optimized design

• Timing synchronization expertise

• Most powerful traffic management in a CPE device

• Established track record with leading operators around the globe


Thank You For Your Attention

www.rad.com

Visit www.ethernetaccess.com for more information

http://www.ethernetaccess.com/

23077 carrier ethernet-trends-challenges

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