increase profitability with carrier-grade ethernet access

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Increase Profitability with Carrier-grade Ethernet Access Presented by: Yacov Cazes Director Product Management & BD Customers’ Event Crete, May 2007

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Customers’ Event Crete, May 2007. Increase Profitability with Carrier-grade Ethernet Access. Presented by: Yacov Cazes Director Product Management & BD. Market Update. Expected Revenue Performance in 2006. Ethernet Access Devices Will Play A Key Role In Driving Growth. - PowerPoint PPT Presentation

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Page 1: Increase Profitability with Carrier-grade Ethernet Access

Increase Profitability with Carrier-grade Ethernet Access

Presented by:Yacov CazesDirector Product Management & BD

Customers’ EventCrete, May 2007

Page 2: Increase Profitability with Carrier-grade Ethernet Access

Ethernet Access CE 2007 Slide 2

Page 3: Increase Profitability with Carrier-grade Ethernet Access

Ethernet Access CE 2007 Slide 3

Expected Revenue Performance in 2006

48%

20%

33%

43%

40%

18%

36%

31%

33%

2%

81%

17%

1%

78%

21%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Perc

enta

ge

FrameRelay

TDMPrivateLines

ATM Ethernet IP VPN

Don't offer the service /unsure

Revenues are likely togrow

Revenues are likely todecline or stay flat

Source: Heavy Reading Global Carrier Ethernet Service Provider Survey, 2H 2006, 163 operators worldwide.

Ethernet AccessDevices WillPlay A Key

Role In DrivingGrowth

Page 4: Increase Profitability with Carrier-grade Ethernet Access

Ethernet Access CE 2007 Slide 4

A Variety of Ethernet Access Solutions

Page 5: Increase Profitability with Carrier-grade Ethernet Access

Ethernet Access CE 2007 Slide 5

Ethernet over a Variety of Access Technologies

• In order to be profitable Ethernet access technology should adjust to:• Available access to the customer site• Enterprise sizes and bandwidth requirements

A variety of Ethernet access solutions allow service providers to extend their reach to as many customers as possible

17%

34%

24%

33%

0%

5%

10%

15%

20%

25%

30%

35%

PON Fiber Copper (DSL) TDM

Current Deployment of Various Ethernet Access Devices

Source: Heavy Reading Global Carrier Ethernet Service Provider Survey, 2H 2006. 161 operators.

Page 6: Increase Profitability with Carrier-grade Ethernet Access

Ethernet Access CE 2007 Slide 6

“Ethernet over Anything, Anything over Ethernet”

Ethernet as a service:• Ethernet over fiber (Ethernet) – ETX• Ethernet over PDH access – RICi+Egate • Ethernet over SDH access – RIC-155/622, FCD-155/622• Ethernet over ATM access – ACE• Ethernet over Wireless - Airmux• Ethernet over DSL – LA

Ethernet as a transport:• TDM over Ethernet – IPmux/ACE• ATM over Ethernet – ACE

See new Ethernet web site http://www.ethernetaccess.com/

Page 7: Increase Profitability with Carrier-grade Ethernet Access

Ethernet Access CE 2007 Slide 7

Fiber Ethernet Access – Packet Switched Network

• Allow for fiber Ethernet in the local loop• Various connectivity scenarios depending on providers network,

access and interfaces to the customer• Various services can be connected at the customer end e.g.:

Internet, Storage, TLS, as well as residential triple play

Packet SwitchedNetwork

Eth/IP/MPLS

PE

PE

100Fx

EthernetAggregator

Customer PremisesCPE ETX

GbE

GbEPE

GbE

Provider’s Node

EthernetAggregator

Provider’s Node

Provider’s Node

10/100BT

100Fx

TransceiverRack

Customer PremisesCPE ETX

10/100BT

Customer PremisesCPEETX

10/100/1000BT

Page 8: Increase Profitability with Carrier-grade Ethernet Access

Ethernet Access CE 2007 Slide 8

Fiber Ethernet Access – NG SDH/Sonet Network

• Ethernet access link to SDH/Sonet Network using the Ethernet tributaries of the NG ADM

NG ADM

FE GE

NG ADM

GEFE

NG ADM

NG ADM

SDH/SONETNetwork

Customer PremisesCPE ETX

Customer PremisesCPE ETX

Customer PremisesCPEETX

Customer PremisesCPEETX

Page 9: Increase Profitability with Carrier-grade Ethernet Access

Ethernet Access CE 2007 Slide 9

IP DSLAM

SHDSL

4 x SHSDLbonding

IP DSLAMLA

LAN

LA

LANEthernet

Ethernet

SHDSLSite A

Site B

DSL – LAN Services Using SHDSL Access

BRAS

• Symmetric SHDSL aimed mainly for business customers LAN over PSN (Packet Switched Network) when using DSLAM with IP uplink

• Access rates: from 2.3 Mbps (1 pair) to 9.2 Mbps (4 pairs bonded) 10/100BaseT service port

• Common services: Transparent LAN Services (TLS) and Internet • Point-to-point and point-to-multipoint connectivity

Ethernet

WWW

EthernetPacket SwitchedNetwork

Eth/IP/MPLS LA

LANEthernet

Site C

Page 10: Increase Profitability with Carrier-grade Ethernet Access

Ethernet Access CE 2007 Slide 10

PDH Access – Ethernet Service over Leased Lines

• Providing Ethernet services based on another provider’s leased lines – out-of-region or out-of-franchise (US)

• Rate versatility – from E1/T1 to to STM-4/OC-12• Bonding solution – 4/8/16 x E1/T1 to bridge the bandwidth

gap between E1/T1 and E3/T3

POP

PSN Eth/IP/MPLS

Customer Premises

RIC

ETH EgateSDH/

SONET

n x E1/T1bonding

Ch STM-1/OC-3

Co-location

Access Provider Network Service Provider Network

Service Provider

Transport Provider

GERIC

E1/T1ETH

Page 11: Increase Profitability with Carrier-grade Ethernet Access

Ethernet Access CE 2007 Slide 11

n x E1/T1

Wimax

Ethernet

POP 2

TDM Access – Service Backhauling over Sonet/SDH

• Backhauling of DSL and Wimax based services over Sonet/SDH network where there is no reachability to the Packet Switched Network

• Different services (LAN connectivity, Internet) can be provided with different QoS

• Specific traffic flows from a specific remote DSLAM are isolated from other DSLAM using VLAN Bridging and Split Horizon

IP DSLAM

POPGateway STM-1/

OC-3GbE

POP 1

Ethernetn x E1/T1

Subscribers

xDSL

IP DSLAM

SubscribersxDSL

InternetEthernet

PSN

SDH/SONET

Page 12: Increase Profitability with Carrier-grade Ethernet Access

Ethernet Access CE 2007 Slide 14

RAD Among the Leaders in Ethernet Access

• Carrier Ethernet World Congress, Madrid, September 2006 - Demonstrating Ethernet service over various access technologies including Ethernet OAM and Uplink redundancy

Page 13: Increase Profitability with Carrier-grade Ethernet Access

Ethernet Access CE 2007 Slide 15

Page 14: Increase Profitability with Carrier-grade Ethernet Access

Ethernet Access CE 2007 Slide 16

Smart Demarcation Concept – Generation of Profit from a Low-Price Service

• Minimizing Opex - Low price points of Ethernet service require very stringent control of the Opex

• Truck roll is not affordable at SME service prices• End-to-end fault monitoring and diagnostics reduce operational costs

• Generating new revenues by providing end-to-end SLA based servicesSmart Ethernet demarcation allows End-to-end service control and SLA verification

27%

33%

43%

44%

67%

69%

0% 10% 20% 30% 40% 50% 60% 70%

Security

Define Ethernet services(e.g E-Line, E-LAN)

Loopback testing

Ethernet servicesadministration

Link integrity testing

verify end-to-end-SLAs

Most Important Uses for Ethernet Demarcations

Source: Light Reading Webinar Survey, September 2006

Page 15: Increase Profitability with Carrier-grade Ethernet Access

Ethernet Access CE 2007 Slide 17

Intelligent Ethernet Demarcation Concept

• Carrier owned, customer located equipment • Clear demarcation between provider’s and Customer’s networks – quickly

determine responsibility of service affecting problems• End-to-end OAM – allow for end-to-end fault management and performance

monitoring• Traffic management starting at customer premises – essential for guaranteeing

end-to-end SLA• Extensive fault monitoring and diagnostics tools – Opex minimization• Available for all previously mentioned access technologies

Provider’s Network

Edge Device

Customer Premises POP

End-to-end traffic management and service control

10/100BTGbE

EthernetUNI

CustomerEquipment Demarcation Device

Provider’s NetworkCustomer’s Network

Page 16: Increase Profitability with Carrier-grade Ethernet Access

Ethernet Access CE 2007 Slide 18

Fault Monitoring and SLA Verification

• End-to-end service monitoring • Trap is sent upon failure at service level

• End-to-end SLA measurements: Frame Delay, Frame Delay Variation, Frame Loss and Availability• Collecting SLA statistics• Trap is sent once SLA is below defined SLA objective

• Can be done when customers are connected over different access technologies at each endEthernet OAM are essential for end-to-end service control and SLA monitoring

Customer Premises

Smart NTUCPE

Operator AOperator B

End-to-end OAM(802.1ag/ Y.1731)

Link OAM(802.3ah)

Customer Premises

Smart NTU CPE

Page 17: Increase Profitability with Carrier-grade Ethernet Access

Ethernet Access CE 2007 Slide 19

Traffic Management from Customer Premises

• Starting traffic management at start of service point allows for end-to-end rather than edge-to-edge QoS

• Traffic classification and prioritization - to ensure that in case of congestion highest priority service will always be served first

• Traffic is classified and mapped to the appropriate priority queues• Bandwidth Control - Guarantees the user does not exceed contractual rate

Traffic management starting at the demarcation point is important to guarantee end-to-end SLA

Customer Premises

Smart NTUCPEPSN

ETH/IP/MPLS

End-to-end QoS

Edge-to-Edge QoS

Customer Premises

Smart NTU CPEEdge

DeviceEdge

Device

Page 18: Increase Profitability with Carrier-grade Ethernet Access

Ethernet Access CE 2007 Slide 20

Fault Monitoring and Diagnostics

• Intrusive and non-intrusive Loopbacks• Dying gasp - Send a trap to management system upon power failure at

customer premises• Fault propagation• Extensive statistics and indications at Ethernet and service levels• Traps and Alarms• Distance to copper link fault• Ping and Trace-route

Proactive fault monitoring and diagnostics allow for saving truck rolls and disputes over the source of the problem, resulting in Opex minimization

Page 19: Increase Profitability with Carrier-grade Ethernet Access

Ethernet Access CE 2007 Slide 21

Smart NTU Helps Increase Service Profitability

Revenue enhancing features• Multi service support: TLS, Internet, VoIP, TDM, and more

• Guarantee service priority• OAM based End-to-end traffic measurement and SLA visibility –

Allow for providing new SLA based services• Redundancy support for high availability customer requirementsOpex saving features• Plug and play installation and automatic configuration from central

site• Proactive service monitoring – save truck roll and disputes• Extensive statistics and diagnostics – quick service provisioning and

troubleshooting

Page 20: Increase Profitability with Carrier-grade Ethernet Access

Ethernet Access CE 2007 Slide 22

Summary

• RAD’s variety of Ethernet access solutions increase service providers revenues by extending their Ethernet service reach to more potential customers

• RAD’s NTUs allow service providers to generate new revenues from SLA based Ethernet services, using NTUs end-to-end traffic management and SLA monitoring

• RAD’s NTUs provide service control which is essential for minimizing Opex

Page 21: Increase Profitability with Carrier-grade Ethernet Access

your attentionwww.rad.com

Thank you for