NGN for PSTN Transformation

Market Trends
In the current business environment, most operators are faced with the same problem: how to control costs and cap investment in TDM technology, whilst developing new services to attract and retain customers. Major Service Providers needs and requirements coming from the market are: Compensate for a stalled growth, and in same cases a reduction, of revenues coming from voice switched access. Solve the obsolescence problem, both for the transit level and the access level of the PSTN; in this way the operator can reduce its costs, coming both from the everyday operation of the network and the acquisition of TDM equipment for network maintenance/expansion. Launch innovative services in order to attract and/or retain customers; in this way a Service Provider can keep ahead of competition and generate new revenue streams. This evolution in the Service Providers networks leads to the so-called NGNs, Next Generation Networks. As shown in the adjacent chart, the NGN EMEA NGN Market Size total revenues are expected to grow 1 200 quickly and reach, in 2007, about 1.2 Source: Infonetics Research; November, 2004 Billion USD in EMEA; the main revenues 1 000 are subdivided into Softswitches (Class 4 and Class5) and Media Gateways, the 800 Class 4 So ftswitch former becoming the most important Class 5 So ftswitch 600 To tal So ftswitch revenue source this year, mainly thanks M edia Gateways to the deployment of Class 5 solutions To tal NGN 400 (N.B. in 2002 and 2003 revenue 200 subdivision between Class 4 and Class 5 is not available) [source: Infonetics 0 2002 2003 2004 2005 2006 2007 Research, 2004]. Cisco and Italtel have jointly developed the NGN (Next Generation Network) for PSTN Transformation solution; this provides an evolution path for traditional voice network providers. By bringing together voice and data on a single converged backbone and Cisco IP/MPLS and media gateway technology and Italtel i-SSW Softswitch, Service Providers are able to expand or rationalize and consolidate their existing TDM network and plan evolution towards innovative IP-based services. As the network migrates, the opportunities for new services include the integration of Enterprise Business IPCommunications a high growth market as well as residential VoIP telephony over broadband.

Million USD

NGN for PSTN Transformation Solution Description

The NGN for PSTN Transformation solution allows a Service Provider to migrate its TDM network to VoIP, both at transit level (Class 4) and at the access level (Class 5); moreover, its possible for a Service Provider to leave its PSTN as it is, and Alternatively Service Providers can exploit the VoIP technology only for network expansions seemslessly integrating existing TDM assets. In order to include access, edge, core and service layers, a complete NGN PSTN transformation, can be spread over several years.

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The architectural options are the following: NGN to the transit level (Class 4 TDM Replacement, point 1 in the adjacent diagram): Local Exchanges are left unchanged, while the Transit Layer is replaced with Italtel Softswitch and Cisco Media Gateways; the number of TDM Transit Switches and central office sites is reduced NGN to the access level (Class 5 TDM Replacement): replacement of Local Exchanges with V5.2/PRI multiplexers and Italtel Multiservice Gateway (point 2 in the adjacent diagram) or IP Access Gateway remotely controlled by Italtel i-SSW softswitch (point 3 in the adjacent diagram).
PSTN Feature Parity OPEX Reduction compared to TDM Support of IP based innovative services Synergy with Broadband Access deployment Address obsolescence problem No impact on end customers

i-SSW

Class 4 Expansion / Replacement

1

Local Exch.

IP MPLS Backbone

PSTN PLMN

Points of Interconnection
2 3

VoIP OLO

Broadband Access
VoIP & Innovative V5.2 PRI POTS ISDN

The solution is suitable for Services for Business and Voice Legacy Access Residential customers restructuring of legacy installations and obsolete multi-vendor networks, or for TDM Class 5 expansions to avoid investments in legacy TDM technology The key element in the architecture is the Italtel i-SSW Class Independent Softswitch (i.e. suitable for both Class 4 and Class 5 deployments). The Italtel softswitch delivers traditional Supplementary Telephony Services (STS) and Operator services (e.g. embedded functions for Lawful Interception, Number Portability, Voice VPN, CS/CPS, ) and allows the supply of a full set of interfaces towards traditional Intelligent Network platform. Softswitch is ready for the evolution towards innovative multimedia services (Broadband Telephony, Messaging, Video Telephony, etc.). Cisco IP/MPLS backbone support transport of Voice traffic guaranteeing carrier grade service availability leveraging QoS (Quality of Service) and MPLS Traffic Engineering techniques. This solution is also aimed at Mobile Operators that intend to migrate to a Multi-service IP Backbone for inter-MSC trunking, replacing (or expanding) their traditional TDM transit; ItaltelCisco architecture, that supports also Gateway MSC functions, is in field since 2002 under the name "Virtual Transit Network" (VTN) providing pure transport and absolute transparency.

Class 5 Expansion / Replacement

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NGN for PSTN Transformation Solution Components

Call-control and signalling device: Italtel i-SSW Class Independent Softswitch Voice trunking gateways: Cisco AS5xxx and MGX 88xx Series carrier voice gateways Access devices: IP Access Gateways and traditional (V5.2) Access Gateways Other peripheral components: application servers, announcement and media servers, billing devices and route servers Management layer, with the element managers and the high level OSS for Billing, Service Assurance, Fault Management, Performance Management, etc. The adjacent picture shows a Cisco Italtel node that can be deployed at the Service Provider sites for PSTN Transformation. It is composed of Italtel Softswitch (i-SSW, upper part) and of Cisco Media Gateway (MGX 8XXX series, lower part). When fully equipped, a node made of a single i-SSW supports: Up to 1,000,000 total subscribers Up to 10,000,000 BHCA (Busy Hour Call Attempts) Up to 2,048 SS7 destinations and 1,024 SS7 signalling links Cisco and Italtel Professional Services can support Service Providers in designing, implementing the NGN Solution as well as integrating it with Carrier Provisioning and Billing system.

NGN for PSTN Transformation Solution Value Proposition

The main benefits of this solution for a Service Provider are: Operational Expenditure savings (up to 70%), mainly coming from two considerations: o Replacement of a traditional/obsolescent technology with a new one (reduction in number of nodes, compact and less expensive equipment, use of open interfaces, etc.) o Adoption of IP protocol (reduction in transmission and bandwidth requirements, easier and more economic network management, etc.) Capital Expenditure savings: capping of investment in TDM switch and network technology, reduced costs of IP technology, high scalability, sharing backbone resources between voice and data, etc. Open to new IP services: NGN solution can be foundation for the Cisco-Italtel IN-BVS Business Voice Solution leveraging Cisco Call Manager as well for the Cisco-Italtel Residential Voice over Broadband solution to deploy VoIP based primary line replacement for the consumer market. Use of open standards technology (such as H.248 and MGCP) and deployment of Media Gateway resources: evolution towards innovative IP services, like residential telephony over broadband, unified messaging and business voice services Synergy with broadband access deployment: support of Multiservice Access Gateways (xDSL plus POTS/ISDN line cards) to packetize voice at the edge of the IP backbone with minimum customer impact or cost (suitable for mass broadband deployment)

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Cisco Italtel Value

Cisco and Italtel alliance takes advantage of the complementary nature of the two companies: Italtel is market leader in softswitches and has a valuable and unique experience in VoIP, while Cisco is market leader in IP networking and IP Communications. In this way, Ciscos industryleading IP infrastructure equipment is completed by Italtels state-of-the-art Softswitch (i-SSW). Cisco and Italtel are uniquely positioned to help deploy voice services in a cost-effective, scalable and reliable manner over a converged IP network. Their continued participation in and commitment to standardization efforts has contributed to better interoperability, as well as more mature and more robust solutions which benefit both service providers and consumers. Cisco and Italtel accumulated experience with these deployments and best practices have been used to refine both product and solution designs. This enables operators to leverage their experience and achieve solid results in a shorter time frame. The objective of this Italtel and Cisco proposal is to tailor a solution with a cost-effective telecommunications infrastructure, fully scalable and flexible, to meet the current Service Providers requirements, while open to a step by step introduction of new value-added services, based on IP. In particular, Italtel and Cisco have been deploying VoIP infrastructures for Service Providers for more than four years, so that operators worldwide have been able both to cut their costs and to offer innovative services to their customers. For example, Italtel and Cisco joint deployment has enabled Telecom Italia to implement one of the largest VoIP backbone in the world that transports all Italian long distance PSTN traffic, thus allowing significant OPEX/CAPEX savings since 2002. This achievement is the result of combining Cisco Media Gateway platforms with Italtel softswitch technologies along with voice and signalling expertise, an effort backed up by rigorous networks design and solid solution testing and tuning. Nowadays, Italtel platforms are successfully deployed in production networks handling over 33,800 Million minutes/month of live traffic (over 406 Billion Minutes/Year), with about 4 million ports controlled by i-SSW. A list of 25 different customers have selected the Cisco and Italtel joint solutions in 15 different countries. In particular, as far as the PSTN Transformation solution is concerned, the Italtel main references are Telecom Italia in Italy and Freenet.de and Hansenet in Germany.

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