Information and Communication Networks

Migration from TDM to NGN

Michael Sakharov April 27th, 2004

Migration from TDM to NGN Agenda

Market Trends and Needs TDM to NGN evolution SURPASS hiE 9200 SURPASS hiE deployment scenarios Conclusion

Information and Communication Networks

Market challenges
Early NGN promises
The 90s: Aggressive Growth
Market liberalization Explosion of Internet access High market capitalization Dot.com driven technical hype

Early promises of NGN: VoIP is the ultimate cost saver for long-distance and international calls Discard your old network and build a new all-IP network and you will be better off NGN promises in the past were:

Since Since 2001: 2001: Economic Economic Slow Slow Down Down
High debt levels Less-than-expected growth Market driven investments

Declining prices for long-distance calls dont leave much room for earnings

Since Since 2003: 2003: Maximizing Maximizing ROA ROA

NGN Realities today are:

Secure current investment Step- by-Step investment

NGN has to guarantee investment protection of existing infrastructure

Qualitative growth replaces quantitative growth!

Information and Communication Networks 3

NGN will take place

The value proposition of NGN
Self-managing Revenue -generating Demand-oriented

Networks
TDM Technology

Applications

Infrastructure

Revenues per Line

NGN IPTechnology TDM Technology

Costs per connection

OPEX per line

NGN IPTechnology

NGN IPTechnology

TDM Technology

Network size

Time

Time

Reduced number of managed nodes & self -routed IP backbone

Innovative applications through common IP denominator

Internet volumes and technological advancements reduce IP costs

Information and Communication Networks

NGN will take place

Drivers of NGN deployment

4,51 4,34 4,23 4,09 4,00 3,96 3,68

Operational cost Available Services from NGN equipment Scalability Ability to offer bundled services Cost per port Open / Standard based interfaces Allow 3rd party service creation

Most interviewees stated that

reduced operational cost is the most critical factor

Other main drivers for NGN

deployment are available new services and scalability

Source: Dittberner Research 2002 Range 1-5: 1=not important, 5= most important Information and Communication Networks 5

NGN will take place

A major number of carriers are issuing NGN tenders

Carriers believe in VoIP as the wave of the future:

Carrier already stopped investing in TDM Carrier issued RFI/RFP for NGN
18% 32%

A number of carriers have

already stopped investing into TDM
64% 80%

A major number of carriers

are planning to issue a RFI/RFP for NGN solutions
100%

0%

20%

40%

60%

80%

CLEC

ILEC

Source: Source: Dittberner Dittberner Research Research 2002 2002

Interview Interview with with 35 35 executives executives of of 22 22 American American and and European European telecommunication telecommunication operators operators

Information and Communication Networks

Migration from TDM to NGN Agenda

Market Trends and Needs TDM to NGN evolution SURPASS hiE 9200 SURPASS hiE deployment scenarios Conclusion

Information and Communication Networks

TDM to NGN evolution

Requirements for flexible and cost efficient NGN migration

Ideally the TDM to NGN migration should Support full legacy feature set Allow the introduction of new, revenue-generating services Yield low technology introduction costs Result in lower Operational Expenditures Increase Return on Assets

US$ per year

OPEX CAPEX Revenues

Your profit !

Legacy TDM network

After migration to NGN

* Total Cost of Ownership

TDM to NGN migration should focus on maximizing Return on Assets by reducing TCO* and increasing revenues
Figures based on business cases developed using Gartner Group methodology and research
Information and Communication Networks 8

TDM to NGN evolution path

Overview
TDMto toNGN NGN TDM EvolutionPaths Paths Evolution

Overlay Overlay Cap& &Grow Grow Cap TypicalDrivers Drivers Typical Newrevenue revenue New opportunities opportunities (independentof of (independent TDMnetwork) network) TDM

Migration Migration PartialSubstitution Substitution Partial TypicalDrivers Drivers Typical Networkcomplexity, complexity, Network equipment equipment obsolescence, obsolescence, demandfor for demand applications applications

TypicalDrivers Drivers Typical Trafficgrowth, growth, Traffic subscriberline line subscriber growth,demand demandfor for growth, applications applications

Information and Communication Networks

Next Generation Switching Market in figures

TDM and NGN World Switching Market
12 Market Size [billion Euro] 10 8 6 4 2 0 2003 2004 2005 2006 2007 2008

NGN for Overlay Scenarios Signaling Overlay Networks

NGN for Migration TDM Switching

* Source: Siemens Research, 06/2003

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Migration from TDM to NGN Agenda

Market Trends and Needs TDM to NGN evolution SURPASS hiE 9200 SURPASS hiE deployment scenarios Conclusion

Information and Communication Networks

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SURPASS hiE 9200 .the master of control !

NGN Management SURPASS Next Generation Management

NGN Control
NGN Control
Media Gateways Application/Video Servers

SURPASS Next Generation Switching

PSTN/ Mobile Network

NGN Core IP/Optical Backbone NGN Access

Media Gateway Access Gateway

SURPASS Next Generation Optics

Triple Play Voice, Video, Data

Multi-Service Access

CPE
PBX LAN

SURPASS Next Generation Access

Residential Customers Information and Communication Networks

Business Customers 12

SURPASS hiE 9200 100% TDM plus 100% IP

The worlds leading TDM switching system with all its interfaces, protocols and features

EWSD

SURPASS hiQ 9200

The carrier-grade platform for full-featured switching solutions in Next Generation Networks

SURPASS hiE 9200

TDM and Next Generation Switching The features of both platforms combined in one powerful solution
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Information and Communication Networks

SURPASS hiE 9200 .the center of NGN services and applications

IP IP applications applications

Freecall Button

Synchr . Web Surfing Confer

SURPASS hiE 9200

Legacy Legacy TDM TDM subscribers subscribers (business (business & & residential) residential)

TX TDM Transit Plane

TDM TDM Trunking Trunking

IP IP Trunking Trunking

IP-based IP-based business business & & residential residential subscribers subscribers
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SURPASS hiE 9200 Package Structure

TDM package
TDM Applications Applications IN (ISL, INAP) GeoCentrex TDM Call Center TDM Local Access Local Access (Class 5) TDM local exchange

IP package

+ + + +

IP Applications IP Centrex IP Call Center IN & ISL services for NGN Multimedia Applications IP Local Access IP Direct Access IP Converged Access IP Trunking IP Trunking

TDM Trunking Trunking (Class 4) TDM transit exchange

Platform

TDM Platform Numbering & Routing Charging Performance & Reliability SS7 signaling Lawful Interception
Information and Communication Networks

IP Platform Interworking to SIP domains IP Control Protocols

(MGCP, H.248, H.323, BICC)

SS7 over IP Lawful Interception in IP

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SURPASS hiE 9200 Overview

Access

SURPASS hiE 9200

Switching network Access & trunks . Access & trunks
NetManager

POTS& ISDN-BRI

TDM

SS#7

Switch ??? INAP

LNP SCP

ISDN-PRI

LTG Access gateway POTS & ISDN-BRI ACP

SN

LTG

IN

SS7 Processor IP call control

MCP

Common

Coordination Processor CP & MB

Open Service Platform

Trunk Gateway

Packet Manager
Access Gateway H.248
H.323(+)

MGCP

H.323 MGCP, H.248, ACP MGCP IP ????

H.323 H.323 IAD/CPG

H.323(+) ? MGCP

IP

????????? ??????

SIP domain MGCP SIP-NNI

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Migration from TDM to NGN Agenda

Market Trends and Needs TDM to NGN evolution SURPASS hiE 9200 SURPASS hiE deployment scenarios Conclusion

Information and Communication Networks

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SURPASS hiE deployment scenario hiE IP Local Access

IP Converged Access
ISDN SURPASS hiE 9200
NetManager
for common management

DLU DLU
POTS
PBX

V93

SS7/C AS
Switch SS7 STP

ISDN PRI R2
V5.2

Any Access

SURPASS hiG 1600

MGCP H.323 SIP-T

H.248 ACP

POTS/ISDN

ISDN
IP IP DLU DLU IP

IP Network

SURPASS hiG Media GW for Trunks

POTS
ISDN

IP Direct Access
IADs CPGs
PBX

POTS
xDSL

IP-IP GW SURPASS hiG 50 POTS ISDN IP PBXs IP Phones & Clients 18

SURPASS hiX 5500/5200

Data

PRI

Information and Communication Networks

SURPASS hiE deployment scenario hiE IP Trunking

NetManager

LNP SCP IN

SURPASS hiE 9200

INAP / TCA P

TX Transit Plane
BICC/S IP- T

r IP ove SS7

Local Switch

MG CP /M EG AC O

MG CP

hiR

SS7

STP

Trunk Gateway

SS7

controlled via MGCP or H.248

O AC EG /M CP MG

PSTN
IP Network SURPASS hiG Trunk Gateway SURPASS hiG Trunk Gateway

PSTN network

Mobile Network

Full IP based NGN capabilities for replacing/supplementing the existing TDM-based Class 4 transit layer.
Information and Communication Networks 19

SURPASS Applications
Ring Ring Back Back
Unified Unified Messaging Messaging
Video Video Conferencing Conferencing

Presence Presence

...
Applications Video Telephony Applications

...

INAP

Corba

SURPASS hiE IP Applications

SIP

SIP Interworking

Switch based Applications

Information and Communication Networks

Switch based Applications

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10

EWSD migration to SURPASS hiE

TX
ISDN-PRI subscribers

Transit Plane

POTS & ISDN-BRI subscribers

EWSD

Local Switch

Information and Communication Networks

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EWSD migration to SURPASS hiE

Evolutionary steps into NGN with SURPASS hiE
SURPASS hiE 9200

TX Transit Plane

ISDN-PRI subscribers

POTS & ISDN-BRI subscribers

Upgrade of EWSD to SURPASS hiE 9200

with maximum investment protection
Local Switch

Information and Communication Networks

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EWSD migration to SURPASS hiE

Evolutionary steps into NGN with SURPASS hiE
SURPASS hiE 9200

TX Transit Plane

ISDN-PRI subscribers

Infrastructure-driven NGN solution

IP IP Trunking Trunking for for connections connections to to

POTS & ISDN-BRI subscribers Trunk Gateway

controlled via MGCP or H.248

n n n n

IP PBX subscribers, IP clients & phones

controlled via H.323(+)

the the transit transit plane plane other other local local switches, switches, making making the the transit transit plane plane obsolete obsolete

IP Network
IAD/CPG subscribers
controlled via H.323(+) or MGCP
SL e.g. D

IP IP Local Local Access Access solutions solutions to to

n n

n n

connect connect legacy legacy subscribers subscribers to to the the NGN NGN consolidate consolidate the the network network by by replacing replacing local local switches switches

POTS & ISDNI subscribers Access Gateway

Local Switch

controlled via ACP or H.248

Information and Communication Networks

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SURPASS hiE Any switch replacement

ISDN-PRI subscribers

Local Switch
Switch

POTS & ISDN-BRI subscribers

Transit Switch
Switch

Transit Switch
Switch

Local Switch
Switch

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12

SURPASS hiE Any switch replacement

SURPASS hiE 9200
ISDN-PRI subscribers

Local Switch
Switch

POTS & ISDN-BRI subscribers

IP PBX subscribers, IP clients & phones

controlled via H.323(+)

Local Switch
IP Network
Switch

IAD/CPG subscribers
controlled via H.323(+) or MGCP
DSL e.g.

Trunk Gateway
controlled via MGCP or H.248

Information and Communication Networks

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SURPASS hiE Any switch replacement

SURPASS hiE 9200
Access Gateway ISDN-PRI subscribers
controlled via ACP or H.248

Infrastructure-driven NGN solution

Full Full support support of of existing existing IP IP trunking trunking solution solution

POTS & ISDN-BRI subscribers

IP PBX subscribers, IP clients & phones

controlled via H.323(+)

Local Switch
IP Network
Switch

IP IP Local Local Access Access solutions solutions to to

n n

n n

IAD/CPG subscribers
controlled via H.323(+) or MGCP
DSL e.g.

connect connect legacy legacy subscribers subscribers to to the the NGN NGN consolidate consolidate the the network network by by replacing replacing local local switches switches

Trunk Gateway
controlled via MGCP or H.248

Information and Communication Networks

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Migration from TDM to NGN Agenda

Market Trends and Needs TDM to NGN evolution SURPASS hiE 9200 SURPASS hiE deployment scenarios Conclusion

Information and Communication Networks

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SURPASS hiE NGN & Migration Summary

SURPASS hiE 9200 is
the evolution of EWSD - the most successful TDM Switching System the migration switch for existing EWSD networks
with a step-by-step approach to full NGN

100% TDM

plus

100% IP

the leading-edge product to provide NGN

..................with the complete TDM feature set

the carrier grade solution for Trunking, Local Access and Applications
.on one platform for TDM and NGN

stands for maximum protection of TDM investments and short term RoI

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SURPASS hiE NGN & Migration Conclusion

The TheSiemens Siemensvision visionof ofthe thetelecommunication telecommunicationnetworks networks of the future of the futureis is.. ..

.. IP -based Next ..an anall allIPIP-based NextGeneration GenerationNetwork Network

SURPASS SURPASShiE hiE9200 9200paves pavesthe theroad roadto toget getthere there!!

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Thank you..

...for your attention!

Information and Communication Networks

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