Narrowband & IP Strategy

Steve Wickenden & Dave Hughes

12 November 1999

Objectives

Explain issues for UK in current deployment of Narrowband Networks

• Describe NB capacity demand and supply

• Identify drivers for change

• Provide an overview of BT’s 2 year plan

Inform OPF of our Dial IP proposals

• Provide an overview of Products and Pricing

• Provide an overview of deployment plans

Narrowband Core Network Topology

795 DLEs

74 DMSUs(71 Sys X & 3 NGS)

33 DJSUs/WATs(32 Sys X & 1 NGS)

DLE DLE

WAT/DJSU

DMSU DMSU DMSU

DLE

BT Plans to increase Narrowband Capacity

• Next Generation Switch

• Wide Area Tandems

• DLE Tandems

• Virtual Switch Location

Next Generation SwitchReplace System X DMSU/DJSU/WATs in fully interconnected single tier network.

• First switch operational 9/99

• 3 switches now operational

• 6 switches operational 11/99

• 11 switches operational 3/00

• 39 switches operational 3/01

Wide Area Tandems

• 16 operational at 10/99

Provide access to/from directly connected BT Local Exchanges

DLE TandemsProvide access to/from directly connected BT Local Exchanges

• First switch operational 4/00• 80 switches operational 9/00

Virtual Switch Locations

POC

BT Switch A

BT Switch B

OperatorNetwork

Standard Interconnect Link

Temporary Extension Circuit

Operators will interconnect temporarily with a switch other than that requested - switch B rather than switch A

• BT meets costs of extending the Operators interconnect link to the offered switch

• BT meets costs of connecting Operators to requested switch when this is replaced by NGS

BT Narrowband Demand Drivers

• Future demand is not “more of the same”

• PSTN future demand mix will be increasingly dominated by interconnect calls

• Interconnect demand is being dominated by Internet calls

Core Network “In Use” Capacity Growth

0

10000

20000

30000

40000

50000

60000

70000

80000

90000

100000

Aug-9

8

Sep-9

8

Oct-98

Nov-9

8

Dec-9

8

Jan-

99

Feb-9

9

Mar

-99

Apr-9

9

May

-99

Jun-

99

Jul-9

9

Aug-9

9

Sep-9

9

Oct-99

Nov-9

9

Dec-9

9

Jan-

00

Feb-0

0

Mar

-00

Apr-0

0

May

-00

Jun-

00

Jul-0

0

Aug-0

0

2Mbits

BT to BT OLO Internet Other OLO

OLO Forecasts of Interconnect Capacity for Internet Calls

0

5000

10000

15000

20000

25000

30000

Dec-98 Mar-99 Jun-99 Sep-99 Dec-99 Mar-00 Jun-00 Sep-00

2 m

bit

s

06/98 Forecast 10/98 Forecast 03/99 Forecast

06/99 Forecast 09/99 Forecast 09/00 Projected Outturn

Narrowband Switch Limitations

• Not appropriate for long duration calls

• Inefficient transport for IP calls

• Higher unit costs compared to equivalent IP technology

• Narrowband solution may not deliver the optimum consumer prices

Summary 1. BT’s plans will meet immediate demands on the narrowband network

2. Calls to the internet are driving the expansion of the BT and Operator Narrowband networks

3. Narrowband switches are not the best technology to use for volume growth of Dial IP traffic

4. The Internet explosion could drive IP investment to support Broadband Britain