Providing Integrated Services Over Copper & Cable

1. Providing Integrated Services Over Copper & Cable February, 2001 It’s About Time.

2. 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

3. 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

4. Integrated Services Opportunity • Voice • Security: • Firewall/Virus Protection • Filtering • VPN’s • Messaging • Translation • Integrated • Video • Mail • Conferencing

5. Opportunity Con’t • Collaborative Work • Virtual Meeting • Shared Whiteboard • Web Design/Web Hosting • Caching/Peering • ASP Services • ECommerce

6. 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.

7. Implementing Services

8. Standard ADSL ADSL with “derived” voice   Data:Internet, etc. ADSL Line ADSL Line Data:Internet, etc. POTS POTS 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

9. 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

10. GW ATM backbone PSTN GW Voice Gateways Service providers End users Access providers Servicemanagement Servicemanagement ASAM ... ADSL-NT Isp’s ... ATM or FR pipes Mini-RAM IP-tunnels ... Corporates Data backbone BAS ATM edge ASAM ADSL-NT ...

11. Security: DSL Access: PPPoX with L2TP tunneling CoSine IPSX CVR DSLAM DSL ATU-R Shasta BSN IPSec Tunnel L2TP Tunnel ATM Core ATM Access SP VR LAC DSL ATU-R STM-1 LAC LNS PPPoX L2TP Tunnels IPSec Tunnels • 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

12. Leased Line Access: Direct CoSine IPSX CVR Channelized T1 or fractional service CPE Local Access IPSec Tunnel ATM Core Metro Loops SP VR Local Access CPE Channelized DS3 PPP IPSec Tunnels • Timeslot groups for each customer is mapped from the Channelized DS3 through to their respective C-VR.

13. 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

14. Putting It All Together

15. ASP VPN Web Hosting Roaming Virtual Office Trends: Business Users (1) Decentralizing Outsourcing Intra-/Extranet Supply Chain Integration Access to advanced services for SME/SOHO Source: Asia/Pacific Telecom Network Services Market 1999-2004, IDC

16. Trends: Business Users (2) Voice-Data Convergence More than 60% of APAC companiesare integrating or will integratedata and voice. A large share of these companies will use Voice over Packet tocommunicate across the supply chain(suppliers, customers and channels/resellers). Source:WAN Manager Survey - Jul 2000, IDC

17. Business Services End-user applications increasingly need more network services which can be provided by network operators Enterprise Large Business VOICE VPN PRI, Centrex, VoIP DATA VPN Internet, Intranet, Security, Privacy, Management Outsourced Firewall, Routing E-Commerce, Co-working Access Node Small Office Home Office Access Node Switch/Router WW Local connect (roaming) Single Authentication VPN, Security, Privacy AAA, Billing Policy, QOS, SLA VoIP, Fax/IP, Transport Mobile Telecommuter Access Node

18. End-user applications increasingly need more network services which can be provided by network operators Residential Services Content Application Provider Server farm Voice POTS, ISDN, VoIP Dial up Internet Always on Internet Videoconference Switch/Router Private Residential Web hosting, E-mail, E-commerce S&F Fax/IP, Unified messaging Audio/Video StreamingInteractive Digital TV Access Node VPN, Security, Privacy AAA, Billing PPP, tunneling IP pool management Remote Access Services RT Fax/IP, VoIP, Transport

19. 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

20. 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

21. Summary • Integration can help future proof an SP’s business • Integration can begin today • Take prudent risks to differentiate toward your key segments