NGN Migration Strategy

HUAWEI TECHNOLOGIES CO., LTD.

NGN Migration Strategy

Dr Richard H Noyau

Principal Network Consultant

Business & Network Consulting

Huawei Technologies Co. Ltd


Contents

- FMC 2.0, the next game

- NGN Migration Strategy

- Deployment Strategy:

Consumer

Enterprise

- Migration Challenges:

Optical Network

IP Backbone

- Combining Fixed & Mobile Technology

- Examples

- Conclusions


Contents




Consumer

Enterprise


Optical Network

IP Backbone


- Examples

- Conclusions

Page 4 HUAWEI TECHNOLOGIES CO., LTD.

FMC 2.0 = FBB + MBB + Content

FBB

MBB

Content

+

Enable Broadband Monetization

Broadband + Content

Improve Customer Stickiness

MBB FBB

Accelerate Content Distribution

Content Broadband

Crossover is Happening, FMC2.0 is The Way Forward


Fusion: Improving Customer loyalty & Market Share

The launch of Telefonica's "Fusion" package offering combined Internet, television, mobile and fixed

lines services, had improved customer loyalty, helped take 600,000 mobile contracts from competitors

and boosted its broadband market share.

0.61M

0.0

1.1

1.7

2.2

2.6

12Q3 12Q4 13Q1 13Q2 13Q3

1.1M

FUSION

TV Fiber Mobile Landline

Imagenio 6HD Chs

100M

Call Free

1G Data

SMS Free

4G Ready Unlimited

+ + +

Fusion Sub Addition of TEF Spain(M)：

One Bill: 59.90€/Month

a family-centered service bundling

—— Luis Miguel Gilperez, president of Telefonica Spain

From www.reuters.com


The Next Game: FMC2.0

Now, you cannot, of course, talk about strategy and the future without talking about

convergence

…

—— Vittorio Colao , Vodafone Group CEO

Pan-European Unified Service Footprint

From VDF GROUP Analyst and Investor Conference Call

New players

in other countries

UK Germany

Spain

Italy Netherlands

Portugal South Africa

New Zealand

Ireland


Contents




Consumer

Enterprise


Optical Network

IP Backbone


- Examples

- Conclusions


“Faster” Fiber as FBB Last Mile Access

FTTD ONU

10G/40G PON

Mini OLT (2U)

Faster ROI

Reuse Resources (site/fiber)

BBU Cabinet

Faster Speed

250M~1G @ Any Media

Faster Deployment

Zero Site/power/home-entry

Splitter

Twisted pair

CAT5

Coax

Power line

WiFi

Metro

Ethernet

FTTD ONU

250M VDSL

G.fast


Microwave as FBB Last Mile Access

Fiber-like Experience Guaranteed bandwidth, Low latency

Easy Deployment Fiber/Cable-free, “0” configuration

E-Band / V-Band Microwave

1G… 5G… 20G… 100G

(bps)

Metro

Ethernet

FTTD ONU Twisted pair

CAT5

Coax

Power line

WiFi

FTTD ONU

250M VDSL

G.fast


SSP: Efficient FBB Service Provision with Limited Resource

1000人

3rd party EMS TMS

Highlights：

3 Months enable service auto-provision

Provision efficiency: 4000 user/day

Provision duration<2 days

Provision success rate>98%

1.5 years ahead of readiness

iBridge SSP (Smart Service Provider)

Web infrastructure Fast integration

Script-driven Fast customization development

Light-weight auto service activation

U2000

OSS

~ 200人

Provision efficiency

4000 user/day Provision duration

<2 days

Fixed operators

O&M Situation

Mobile operators

Solution HuNan Mobile

0

100

200

300

3 Months 9 Months 1.5 years 3 years

scheduled subscribers SSP makes more subscribers

2 M ready

1M

2M

3M 1 M more

How ?

http://ico.ooopic.com/ajax/iconpng/?id=35481.png


Contents




Consumer

Enterprise


Optical Network

IP Backbone


- Examples

- Conclusions


Smart ONT: Exploring the Value of Future Digital Home

Smart ONT

Service

Enable Smart Home

Connection

Smart Service

Better Price & Experience

Bundled Package, Network Synergy

Natural Resource Advantages

Sales Channels, O&M Team, Call Center

Trusted and Reliable Image

Long-term business relationship than OTT

Smart service：OSGi/Andriod open platform for 3rd party service integration

Smart Home Connection: Seamless WiFi coverage

Smart O&M：Remote manage system, Mobile phone App

Smart O&M

(3rd party

APP)

E-Learning eSmartHealth

Home

Entertainment

Home

Monitoring

Home

Automation


vSTB: Innovate IPTV with Internet Openness

Function

Transfer

IPTV

vSTB

On IP Edge

OTT

TV

Thin STB

Tablet Smartphone

Middleware

Service Logic

DLNA server

Decoder

Browser

Headend: Zero Change

IPTV IPTV + OTT

Service: Shortened TTM

Decouple Service Software from STB

Lifecycle TCO Reduction

Simplified CPE, Centralized O&M, Lower OPEX

High Innovation Potential

Open Platform: IPTV Multi-screen/Roaming

http://en.wikipedia.org/wiki/File:Netflix_Logo.svg

http://en.wikipedia.org/wiki/File:YouTube_Logo.png


Contents




Consumer

Enterprise


Optical Network

IP Backbone


- Examples

- Conclusions


vEnterprise: Boost Enterprise Service Transformation

WoC DPI CGN IPSec Storage Computing Topology Bandwidth Policy

vTN Self Defined Tenant Network ,

Fast Deployment.

vDC Consolidate Distributed DC

Resources, Provide End to

End IaaS.

vAR One Stop Store - Unified

Services Package based on

SDN, Shorten TTM.

Service Network Cloud

DC 1 DC 2

VDC 1 VDC 3 VDC 2 VDC 4


Contents




Consumer

Enterprise


Optical Network

IP Backbone


- Examples

- Conclusions


Metro Optical Transport – “WDM to Edge”

8T over one pair fiber

Big bandwidth

80λ×100G

1/2U fit for outdoor cabinet

Mini size

Challenge of Mobile Operators migrating to FMC 2.0

One platform

One Transport Platform

Mobile + fixed broadband

+ Leased line service

Metro Core

Metro Aggr.

Metro Access

!

Bandwidth expansion

by fiber overlaying result

in fiber bottleneck

!

Little site space

for new fixed service !

Leased Line

Various of service

type from new fixed

service OLT

!


Huawei 400G Optical Solution Highlights

OTN based 400G

• Industry 1st Commercial

Terabit oDSP T-SDN Oriented

100G 400G 1T

One OTN Platform for 100G/400G/1T

• Compatible with 100G/400G/1T

• In house design • Open & Programmable

• Modulation format adjustable


Contents




Consumer

Enterprise


Optical Network

IP Backbone


- Examples

- Conclusions


13Gbps

720Mbps

364Mbps

Globe Data Traffic Monthly

Usage

Data Source：Huawei MA

MBB: 2x FBB: 18x

UMTS

LTE

2014 Global Digital Information

Created & Shared will be 9 times

than 2009

Ultra Broadband

• 400G/1T platform

• Flexible link resource

• Deployed on demand

Elastic Architecture

• Flatten network layer

• Smooth expansion

• For future 5~10 years

Is your IP backbone

network ready for

FMC2.0?

CONTENT:

6 Zettabytes

Challenges of IP Backbone in FMC2.0


Embracing Terabit Routing Era

9U LPUI-1T

24*40GE QSFP+

LPUI-1T

8*100GE CFP2

World 1st 1Tbps Routing Line Card World 1st 6.4Tbps Full-Gear Test

------Carsten Rossenhoevel, Managing

Director，EANTC

“…Huawei 400G has pass the

strict test based on service

provider network, provides high

performance with low power

consumption ..."

Leading

Communication

Solution Vendor

Authoritative

Third Party

Testing Institution

Outstanding

Communication Test

Solution Provider

9U


* Estimated data based on specific network

Network Design and Configuration

Simplified, Fast Service Deployment

CO as Boards of BNG, Managed

Network Element Reduce 80%*

Virtualized CO Simplify Metro Network

Virtualized

BNG

AGG

CO

3 layers to 1

NE40E-M2 NE40E-X2/X1

NE40E-X8/X16

Smart CO

BNG


Contents




Consumer

Enterprise


Optical Network

IP Backbone


- Examples

- Conclusions


Technology Combination Creates Differentiation

HAAP

Bonding Node Bonding

LTE Tunnel

DSL Tunnel

eNodeB

DSLAM

EPC

BNG

Home

Work

Mobile

Fast Time to Market Higher Bandwidth Higher Reliability

SIM card speed (Hours)

VS.

Fixed line engineering

(Months)

LTE & DSL Bonding

(60M UL/160M DL)

VS.

Pure PON (100M), Cable (150M)

Dual plane protection

VS.

Single plane protection

Hybrid Access


Contents




Consumer

Enterprise


Optical Network

IP Backbone


- Examples

- Conclusions


Mobile Service Operator: KDDI „au Smart Value‟

Success in Both Markets „au Smart Value‟: Family-Centric + Show Money

Source: KDDI company websites

au Smart Value user,

36% of new Smartphone subs.

5.40M

FTTH user

48% of new FTTH subs.

3.05M

Reduction in FTTH subs.

acquisition costs per unit

33%

FTTH companies

5

CATV companies

99

Nationwide

household coverage

80%


Integrated Service Provider: China Telecom „0123‟

Successful Attack, Even in Mobile Market “0123” : Family-Based Bundled Plans

Free IPTV service

One fixed broadband

Two mobile phones

Three mobile phone numbers

0

1

3

2

Source: China Telecom/China Mobile company websites

48.9%

45.1% 44.8%

2011 2012 2013.6

-4.1%

91

126

161

175

2010 2011 2012 2013.6

+84M

Strong subs. Growth

CTC: Mobile Subs. (Million) CMCC: Market Share

Declining market share


17%

2013.04

2013.10

2M BT sport channel subs.

2x Net adds of BB subs.

2013.11

Broadband & TV revenue

A Win-Win-Win Achievement

x% Price of Televised football rights Hottest sport matches

BT Sport: Premium Content Boosts Broadband


China Telecom: OTT Engagement Monetizes Broadband

3.5M$ Revenue Sharing

A Win-Win-Win Achievement

4x More Paying Customer Crazily Fast Download Speed

20x

Thunder

Network Capability

Download Resource

Basic

BW

B X ellerated asic

End User

Telco

Ordinary VIP

Open Capability Share Revenue

Instant speeding Extra Payment

… OTT


Contents




Consumer

Enterprise


Optical Network

IP Backbone


- Examples

- Conclusions


3 KSFs for Mobile Operators‟ Moving to Fixed

A Clear Goal

Reduce churn rate

New Revenue Source

MBB & FBB Synergy

Suitable Entering Strategy

Wholesale

Acquisition

Self-Built Network

Latecomers Advantage

Leverage Existing Resources

Not Do Service Like ILEC

Self-Built

Before Now

Conclusions

• Content and unified services will drive NGN migration

strategy

• Networks will need to carry large increase of data

• Challenges in Optical and IP networks

• New centralised and edge solutions required by networks

Thank you www.huawei.com

Copyright©2014 Huawei Technologies Co., Ltd. All Rights Reserved.

The information in this document may contain predictive statements including, without limitation, statements

regarding the future financial and operating results, future product portfolio, new technology, etc. There are a

number of factors that could cause actual results and developments to differ materially from those expressed or

implied in the predictive statements. Therefore, such information is provided for reference purpose only and

constitutes neither an offer nor an acceptance. Huawei may change the information at any time without notice.


Documents

NGN Migration Strategy