23077 carrier ethernet-trends-challenges
DESCRIPTION
A review of current trends and challenges in the Carrier Ethernet services market, various deployment strategies adopted by service providers and their effects on network access planningTRANSCRIPT
Carrier Ethernet Strategies 2011 Slide 1
Premium Carrier Ethernet Services: Strategies for Cost-Reduction and Expansion Beyond the Metro
October 2011
Carrier Ethernet Strategies 2011 Slide 2
Agenda
• Carrier Ethernet: Current Market Trends and Challenges
• Carrier Ethernet Deployment Strategies
• How RAD Addresses Market Challenges
• Conclusion
Carrier Ethernet Strategies 2011 Slide 3
Carrier Ethernet –Current Market Trends and Challenges
Carrier Ethernet Strategies 2011 Slide 4
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
Carrier Ethernet Strategies 2011 Slide 5
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
Carrier Ethernet Strategies 2011 Slide 6
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
Carrier Ethernet Strategies 2011 Slide 7
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 Strategies 2011 Slide 8
Carrier Ethernet Deployment Strategies
Carrier Ethernet Strategies 2011 Slide 9
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 Strategies 2011 Slide 10
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
Carrier Ethernet Strategies 2011 Slide 11
How RAD Addresses Market Challenges
Carrier Ethernet Strategies 2011 Slide 12
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
Carrier Ethernet Strategies 2011 Slide 13
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
Carrier Ethernet Strategies 2011 Slide 14
Meeting Carrier Ethernet Challenges (2)
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
Carrier Ethernet Strategies 2011 Slide 15
Meeting Carrier Ethernet Challenges (3)
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
Carrier Ethernet Strategies 2011 Slide 16
Meeting Carrier Ethernet Challenges (4)
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
Carrier Ethernet Strategies 2011 Slide 17
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
Carrier Ethernet Strategies 2011 Slide 18
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
Carrier Ethernet Strategies 2011 Slide 19
Thank You For Your Attention
www.rad.com
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