It’s About Time.

Providing Integrated Services Over Copper & Cable

February, 2001

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

– 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

POTS

Data:Internet, etc.

Standard ADSL

ADSL Line

ADSL with “derived” voice

POTSData:Internet, etc.

ADSL Line

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

ADSL-NT

ASAM

Mini-RAM

...

ADSL-NT...

ASAM

Service providers Access providers End users

Servicemanagement

Servicemanagement

...

ATM backbone

...

Data backbone ATM edgeCorporates

Isp’s

BAS

ATM or FR pipes

IP-tunnels

PSTN

GW

GW

Security: DSL Access: PPPoX with L2TP tunneling

DSL ATU-R

DSLAM

DSL ATU-R

Shasta BSN

L2TP Tunnels

LAC LNS

ATM Access

ATM Core

SP VR

CVR

CoSine IPSX

IPSec TunnelL2TP Tunnel

IPSec TunnelsPPPoX

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

LAC

STM-1

Leased Line Access: Direct

CPE

CPE

Metro Loops

ATM Core

SP VR

CVR

CoSine IPSX

IPSec Tunnel

IPSec TunnelsPPP

Local Access

Local Access

Channelized T1 or fractional

service

Channelized DS3

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)

'99'00

'01 '02 '03 '04012345678

Revenues Managed Data Services (UD$ billions)DecentralizingDecentralizing

OutsourcingOutsourcingIntra-/ExtranetSupply Chain Supply Chain IntegrationIntegration

Access to Access to advanced services advanced services

for SME/SOHO for SME/SOHO

VPNVPN

VirtualOfficeVirtualOffice

ASPASP

RoamingRoaming

Web HostingWeb Hosting

Source: Asia/Pacific Telecom Network Services Market 1999-2004, IDC

Voice-Data Voice-Data ConvergencConvergenc

ee

Trends: Business Users (2)

More than 60% of APAC companies are

integrating or will integrate data and

voice.

More than 60% of APAC companies are

integrating or will integrate data and

voice.

A large share of these companies will use Voice over Packet to

communicate across the supply chain (suppliers, customers and

channels/resellers).

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

AccessNode

AccessNode

AccessNode

EnterpriseLarge Business

Small OfficeHome Office

MobileTelecommuter

Switch/Router

End-user applications

WW Local connect (roaming)Single Authentication

VOICE VPNPRI, Centrex, VoIP

DATA VPNInternet, Intranet, Security, Privacy, ManagementOutsourced Firewall, RoutingE-Commerce, Co-working

increasingly need more network

services

VPN, Security, PrivacyAAA, Billing

Policy, QOS, SLAVoIP, Fax/IP, Transport

which can be provided by

network operators

Residential Services

Switch/Router

AccessNode

PrivateResidential

Content Application ProviderServer farm

VoicePOTS, ISDN, VoIP

Dial up InternetAlways on Internet

Videoconference

Web hosting, E-mail, E-commerce

S&F Fax/IP, Unified messaging

Audio/Video StreamingInteractive Digital TV

End-user applications

increasingly need more network services

VPN, Security, PrivacyAAA, Billing

PPP, tunnelingIP pool management

Remote Access ServicesRT Fax/IP, VoIP, Transport

which can be provided by network operators

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