Telecom Italia Lab

1. Enzo Garetti Maurizio Siviero Paolo Senesi Corrado Moiso Telecom Italia Lab Next Generation Services & Next Generation Networks - Soft Switching & Gateways 2nd May 2001

2. Content • 1 Presentation • Market Evolution • Next Generation Services • Soft Switching & Gateways • Next Generation Networks • 2 Annex • Market Evolution - Details • Next Generation Services - Details • Soft Switching & Gateways - Further details • Next Generation Networks – Details & Applications

3. Market Evolution • Europe (history): • Saturation of PSTN lines • Growth of mobile subscribers • Growth of data traffic • ISDN, PCs, Internet accesses • Telecommunication Services • Voice & Data Services • Fixed & Mobile Services • Networks & Equipment • Fixed & Mobile Switched Networks for Voice & Data • Switching & Networking Equipment • Europe (history): • Growth of the service market • Steady equipment market • 85% services, 15% equipment • Datamonitor forecasts: • Growth of data traffic • Pessimistic, optimistic, probable • Value of traffic • Voice very expensive, Data very cheap • Traffic revenues • Steady voice revenues, growth of Data revenues • Nokia forecasts - Growth of: • the global market • cellular subscribers • PCs connected to Internet • mobile accesses to Internet • Mobile Internet/Intranet services • OVUM forecasts: • Growth of NGN access lines • Steady fixed telephone lines • Dittberner (structural trends): • Partnerships, Acquisitions, Rationalisation • New Telecom Service Providers, Carriers’ Carriers, Consolidation • New Architectures, Optical Solutions, Multi-Service Systems

4. Next Generation Services • Evolution of Service Control: • Telephone Exchange • IN, AIN, Service Nodes • SS7 Signalling Network • New Services & Applications • IP – based packet networks • Converged Services: • Telecommunications & Internet • Voice & Data, Fixed & Mobile • Evolution towards the Information Society: • Exchange of messages (Anyhow, Anytime, Anywhere) • Exploiting any interaction mean (Sound, words, text, images) • Decoupling the user from the terminal and the connection used • Next Generation Services: • voice, data and multimedia traffic • Advanced management • High level of personalisation • Progressive integration of Telecommunication & IP functions • Integrated IP/Telecom Services • Networking of Servers • Diversification of the roles in the value chain: • Content • Application • Service • Caching • Intermediation • Network • Paradigm Shift: • Telephone approach – long term planning • Internet approach – try and error

5. Soft Switching & Gateways • Servers for IP Telephony: • H.323 standards • Gateways • Interworking with PSTN • Interworking with IP nodes & terminals • Gatekeeper (Softswitch) • Processing of call set-up information • Instructions for IP packet routing • RAS (Registration, Admission and Status) protocol (H.225) • Gatekeeper functions: • Address translation • Telephone numbers – IP addresses • Admission control • Other gatekeeper functions • Call control signalling • Call authorisation • Call management • Servers: • Directory services • Registration • Authorisation • Policy services • Feature Server: • Database look-up • SCP • SS7 and IP: • H.323, H.225, H.245 standards • Signalling translation within Gateway + Gatekeeper • SCP/SSP functions & Service Nodes • TCAP over IP

6. Legacy networks Intelligent Network Billing / E-Commerce AAA Mobile Network Residential / SOHO Unified-messaging Signalling Network Integrated Networks PSTN Edge Router Big Internet Line Gateway Trunking Gateway ATM Network Metropolitan Networks Transport Network (TN) Next Generation Networks Users of theplatform ASP User/Service Agent Directory Start-up / Incubator Policy Repository Application Servers Content Provider Call/Session Control Device Server Signalling Agent Corporate Clients Policy Decision Point Control Functionalities High Residential / SME Enabling Network Elements Users of the final service

7. Conclusion • Market Evolution: • Saturation of fixed lines • Data overcoming voice • Mobile overcoming fixed • Next Generation Services: • Evolution of Service Control • Converged Services, NGS • Integration of Telecommunication & IP functions & Services • Networking of Servers • Diversification of the roles • Paradigm Shift • Soft Switching & Gateways: • Servers for IP Telephony: • H.323 standards • Gateways • Gatekeeper (Softswitch) • SS7 and IP • Next Generation Networks: • Application Servers • Control Functionalities • Enabling Network Elements • Transport Network • Gateways to Legacy Networks

8. Annex • 1 Presentation • Market Evolution • Next Generation Services • Soft Switching & Gateways • Next Generation Networks • 2 Annex • Market Evolution - Details • Next Generation Services - Details • Soft Switching & Gateways – Further details • Next Generation Networks - Details

9. Market Evolution • Telecommunication Services • Voice & Data Services • Fixed & Mobile Services • Europe (history): • Saturation of PSTN lines • Growth of mobile subscribers • Growth of data traffic • ISDN, PCs, Internet accesses

10. Market Evolution • Networks & Equipment • Fixed & Mobile Switched Networks for Voice & Data • Switching & Networking Equipment • Europe (history): • Growth of the service market • Steady equipment market • 85% services, 15% equipment • OVUM forecasts: • Growth of NGN access lines • Steady fixed telephone lines Source: Ovum 1999

11. Rel. Bit Volume Traffic Projections for Voice & Data 250 Data (IP) 200 150 Voice 100 50 1997 1998 1999 2000 2001 Source: Multiple IXC Projections Market Evolution

12. Market Evolution

13. Market Evolution • Datamonitor forecasts: • Growth of data traffic • Pessimistic • Optimistic • Probable • Value of traffic • Voice very expensive ‘ • Data very cheap • Traffic revenues • Steady voice revenues • Growth of Data revenues Source: Datamonitor 2000 Source: Datamonitor 2000 Source: Datamonitor 2000

14. Market Evolution Source: Nokia 2000 • Nokia forecasts - Growth of: • the global market • cellular subscribers • PCs connected to Internet • mobile accesses to Internet • Mobile Internet/Intranet services Source: Nokia 2000

15. Market Evolution – Structural Trends • More Strategic Partnership: • Suppliers & Service Providers; Beta trials. • Less Reliance on Supplier Internal Resources for Development: • Acquisitions of “start-up” high technologyfirms • Move of Significant Vendors of PSTN Switching Equipment to Provide Packet Exchanges • New Telecom Service Providers: • Next Generation Systems for new entrants; gradual approach for incumbents • Telecom Operators Undergoing Supplier Rationalisation: • Reduce the number of suppliers; economies in Maintenance & Operation • New Major Operators are Introducing New Network Architectures • TDM, IP, ATM, DWDM; dedicated wavelength (or fibre) for different traffic • Optical Switching May Reduce Packet Switching Traffic Handling • Optical cross-connects • Carriers’ Carriers are Becoming a Significant Factor in Industry Structure • Bulk transmission; reducing costs • Consolidation of Major Service Providers • Bell Atlantic + Nynex + GTE, Vodaphone + Air Touch + Mannesmann Source: Dittberner Associates, Inc 2000

16. Next Generation Services • Converged Services: • Telecommunications & Internet • Voice & Data • Fixed & Mobile • Evolution of Service Control: • Telephone Exchange • Number translation • Switching & Routing • IN, AIN, Service Nodes • Database look-up • SSP & SCP • SS7 Signalling Network • New Services & Applications • IP – based packet networks • Control issues

17. Next Generation Services • Next Generation Services: • Combining voice, data and multimedia traffic • Advanced management • High level of personalisation • Evolution towards the Information Society: • Exchange of messages • Anyhow Anytime, Anywhere • Exploiting any interaction mean • Sound, words, text, images • Decoupling the user from the terminal and the connection used • Progressive integration: • Functions traditionally offered by the telephone network • Functions provided by IP networks • Networking of Servers • Convergence of IP & AIN capabilities • Integrated IP/Telecom Services • Existing (Internet Call Waiting, Click-to-dial, Web-based Customer Provision & Billing, Unified Messaging) • Advanced(Virtual Environment, Virtual Presence, Enhanced VPN) • IP Telephony (Existing offer, cost reduction claim, management & QoS issues • NGS business opportunities: • Rich, diversified and personalised service portfolio • New functions provided by NGN • Integration of IN & IP functions

18. Content Provider Network/ Intermediation Service Provider Application Provider Final Client ... Next Generation Services • Diversification of the roles in the value chain: • Application Service Provider • Content Provider • Caching Provider • Possibilities of intermediation among the upstream actors in the value chain and Service Provider/final client: • communication portal • new business opportunities with benefits for the final client: towards the free access to a bundle of services, with usage-based revenues (e-commerce, one-stop shopping, …)

19. Next Generation Services New approach for the launch of services • Classical telephonic approach: long-term planning Network Deployment Ideation Definition of requirements Design Trial 18 months Internet approach: trial and error A set of services is launched ... …some will succeed! Focus on single services not as eventual “killer applications”, but as a driver (requirements, functionalities) for an infrastructure devoted to improve the modalities of provision of the various services.

20. Soft Switching & Gateways • Servers for IP Telephony: • H.323 standards • Gateways • Interworking with PSTN • Interworking with IP nodes & terminals • Gatekeeper (Softswitch) • Processing of call set-up information • Instructions for IP packet routing • RAS (Registration, Admission and Status) protocol (H.225) • Gatekeeper functions: • Address translation • Telephone numbers – IP addresses • Admission control • Gatekeeper discovery • Endpoint registration • Endpoint location • Other gatekeeper functions • Call control signalling • Call authorisation • Call management Source: Dittberner Associates, Inc 2000

21. Soft Switching & Gateways • Gatekeeper components: • Gatekeeper Manager • H.225.0 RAS • H.225.0 Call Signalling • H.225.0 Control Signalling • Billing Services • Directory Services • Security Services • Policy/Call Management • Transport Protocols & Network Interface • Servers: • Directory database server • Registration database server • Authorisation database server • H.225 RAS server • Policy server • SS7 and IP: • H.323, H.225, H.245 standards • Signalling translation within Gateway + Gatekeeper • SCP/SSP functions & Service Nodes • TCAP over IP • Feature Server: • Database look-up • SCP Source: Dittberner Associates, Inc 2000

22. Next Generation Networks • Concept of Carrier-Class and SLA Management: • evolution of the Carrier-Class concept; • mechanisms to support SLA differentiation/control/management. • Policy-based Networks to support network-based services: • QoS control within the network; • provisioning/customer service management. • Control Aspects: • Modalities for call/session acceptance & control within multi-service networks; • Evolution of the SoftSwitch to support innovative/integratedservices • New terminals/CPE/CLE: • Control modalities; • manageability, remote maintainability; • new characterisation modalities

23. NGN - High Performance Data Networks Data Network Architecture Enterprises ACCESS Server Server CORE ROUTING & SWITCHING EDGE ROUTING • Performance • Capacity • Scalability • Dependability • Congestion control • Packet classification • Access control • Resource management • Security/filtering • Traffic data collection • Profiles/service policy • Very high performance • Simplified functionalities • Fault tolerance • Rich, flexible and evolvable functionalities • Support to the service policies of the operator • Management support Consumers

24. NGN - New Telephony Solutions for New Telephony • Voice as a component of a more articulated service • Network-based services • Infrastructural innovations for a simplicity & flexibility in the service provision • time-to-market reduction, opening towards third parties, ... • Results towards different clients • ILEC, Vendors, Corporate, ISP, CLEC, ... • coherence with the new business models • brokering/retailing/reselling, services towards the other actors of the value chain • interworking issues with the existing situation • TECHNOLOGIES • Architectures • Control/management • Interworking • Terminals/CPE • SERVICES • voice-based • enabling platform • TEST BEDS • focus on services

25. Control Platform PSTN xDSL ! R Broadband Voice Access Network Gateway ! R DSLAM IP BackBone NGN - New Telephony Solutions for New Telephony • Network Architecture • Interworking Systems • for voice (Media Gateway) • for the signalling (Signalling Gateway) • Signalling protocols & systems • Control Systems • calls • networks/services resources • Management aspects • Voice Quality

26. NGN - IP Networking • Content delivery suites • Application hosting • VAS (e. g. fax server) • Networking policies • Performance monitoring • SLA management Management Services Proxy Cache Directory & Location Netw. policy Value Added Networking Services VAS AAA Server User profile Internet core • Network efficiency • Good peering/transit policy • Advanced networking services Internet backbone Corporate & business • Number of users • Click rate • Economies of scale • Low cost solutions Internet access • Turn-key solutions • Vertical integration • CNM solutions • Design consulting

27. NGN - Enterprise Internet Solutions • Design & integration of complete solutions: • Data Intranet, IP VPN, Voice-data integrated solutions (VoATM, VoIP) • video communication solutions & multicast audio-video solutions over Intranet • Support to operation: • re-dimensioning, management, monitoring INTERNET SOHO IP network services ATM/FR network services Remote Site PSTN/ISDN/PLMN Mobile User Headquarter New solutions for corporate networks