mr. oliver andre the hidden costs and benefits of the telecommunications systems

Olivier ANDRE April 2012

The hidden costs and benefits of the telecommunications systems

COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.

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1. Alcatel-Lucent in brief

2. The right choices at the right time

3. The added value of your brand new network

4. Conclusion

AGENDA


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4. Conclusion

AGENDA

4


Alcatel-Lucent at a Glance

” Ben Verwaayen Chief Executive Officer

Broadband everywhere is speeding up life and

business. It takes no time to go from having a

new idea, to touching peoples lives. We must

innovate – and help our customers innovate – at

the speed of ideas.

“

• Headquarters: Paris, France

• Annual Revenues: approx. €16 billion

• Employees: 77,000 +

• 130 countries

FAST

FACTS

• R&D Budget: €2.5 billion

• Active Patents Held: 27,900

• Patents Awarded in 2010: 2,400

• Nobel Prizes Won: 7

“

REALIZING THE POTENTIAL OF A CONNECTED WORLD

COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED. COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.

CUSTOMERS WE SERVE

A leader in mobile, fixed, IP

and optics technologies, and

a pioneer in applications and

services, we offer complete

solutions that help service

providers and their customers

realize the potential of a

connected world.

We provide end-to-end

turnkey communications

integration that improve

quality of life through better

energy management, efficient

transportation and improved

government services.

We help our enterprise and government customers worldwide interconnect their networks, people, processes and knowledge to make money and save money.

SERVICE PROVIDERS STRATEGIC INDUSTRIES ENTERPRISES

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Urban Rail

Power Utilities Smart Grid

strategic Industries: 3 main focus areas S EGMENTS

Transportation

Focus sub-segments:

•Urban & Main Line Rail

•Highways

Key ALU solutions:

•Operational comms transfor-

mation

•Ground-to-Train Comms

• Integrated Control & Mgmt System

• Digital Signage

• Intelligent Transport Systems

Energy

Focus sub-segments:

•Power Utilities/Smart Grid

•Oil & Gas

Key ALU solutions:

•Operational comms transfor-

mation

•Grid automation

•Advanced Metering Infra.(AMI)

•Customer engagement

•Pipeline management

Public Sector

Focus sub-segments:

•Public Safety

•Defense

•State & Local Government

Key ALU solutions:

• First responder networks

•BB overlay services (LTE)

•Video protection

•Open community broadband

•Strategic backbone and rapidly

deployable networks

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Alcatel-Lucent is running effectively in more than 80 mission-critical railway networks around the world

ADIF, Spain

AlpTransit, Gotthard, Switzerland

Arlanda Express, Sweden

ATM Milano Subway, Italy

Beijing MTR Construction, China

Beira Baxa Line Refer, Portugal

BLS Alptransit, Switzerland

Botniabanan, Sweden

Cairo Metro, Egypt

Canadian Pacific Railway, Canada

CFR, Romania

Changchun LRT, China

Changchun metro line Co., China

Czech Railways, Czech Republic

Chicago Transit Authority, USA

Copenhagen metro, Denmark

Corenet, Finland

Delhi Airport Metro express Private limited, India

Dehli Metro Rail Corp., India

Deutsche Bahn, Germany

Dubai LRT

Dublin LRT, Ireland

Eixo Norte, Portugal

Eurotunnel, France

Ferrocarril Surburban, Mexico

FGV, Spain

Guangzhou Metro, China

Hungarian State Railways, Hungary

Istanbul Metro, Turkey

Jernbaneverket, Norway

JSC TransTelecom, Kazakhstan

Kolejowe Zaklady Lacznosci, Poland

Manila Light Railway Transit, Philippines

Massachusetts Bay transportation Authority, US

MAV, Hungaria

Ministry of Railways, China

MPK, Poland

MPTE, UK

MTRC, Hong Kong

Network Rail, UK

New Jersey Transit Corporation, USA

Norfolk Southern Rail, US

NRIC, Bulgaria

NYC Transit, USA

OEBB Telecom Service GMbH, Austria

PKP, Poland

Railtel Corp., India

RATP, France

PKP, Poland

REFER Telecom, Portugal

REFER, Coino/ Pinhal Novo Line Portugal

S-Bahn, Germany

SBB, Switzerland

Seattle Monorail, USA

Seoul Metro, Korea

Shanghai Rail Transit, China

Shanghai Shengtong Line Development Co., China

Sintra Metro, Portugal

Shenzhen metro line Co. Ltd., China

Singapore Mass Rapid Transit

SNCB, Belgium

SNCF, France

SNCFT, Tunisia

South Korea LRT

St Petersburg Metro, Russia

Suzhou Metro, China

Swiss Federal Railways, Switzerland

Syntigo N. V., Belgium

Taiwan Railway Administration

Tanzania Railways Corporation

TCDD, Turkey

Tianjin Metro, China

Transnet Freight Rail, South Africa

Trafikverket (formerly Banverket), Sweden

Trenitalia, Italy

Wuhan Metro Corporation, China

Xi’an Metro, China

ZSR, Slovakia


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4. Conclusion

AGENDA

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Technology Adoption Curve – Intelligent Rail

Time

Innovators Early

Adopters Early Majority Late Majority Laggards

80 % Rail Systems Buyers Pragmatists:

Stick with Herd

Visionaries:

Get Ahead of

The Herd

Techies:

Try It!

Conservatives:

Hold On

Skeptics:

No Way!

SDH

IP/MPLS

100G Ethernet

DWDM

PDH

Optical

Switching

40G Ethernet

LTE

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Reality with legacy network today

Multiple networks to serve different applications

Operators have to maintain multiple networks in parallel

Duplicate hardware and physical infrastructure

Duplicate personnel and operation systems

High OPEX

Limited capability to support next generation application requirements

Limitation in bandwidth and expensive to scale

Limited flexibility for adapting to different network topology requirements

TDM based network are statically configured and suited for low bandwidth, low delay applications

Justification for continue investment in legacy network is weak

Obsolete hardware/software components

End user application moving towards IP/Ethernet based (e.g. IP based CCTV Camera)

Cost

of

Expansi

on

Services

TDM IP/MPLS Ethernet

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• Acquisition cost

• Operational Costs

Man hours & skills

Spares

• Obsolescence

• Expendability

What to take into account when comparing?

Legacy vs Up to Date (IP/MPLS)

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What happens in the wireless world? The convergence standard for all technologies

Deployed

Ramping

Future

Evolution path

4G ITU 100 Mb/s en mobilité et 1Gb/s en fixe

LTE R8/R9 FDD/TDD

W-CDMA HSPA+

EV-DO Rev A

LTE R10 FDD/TDD

GSM TDMA

CDMA 1X EV-DO Rev B

TD-SCDMA

W-CDMA HSPA

WiMAX 16e TDD

WiMAX 16d

WiMAX 16m FDD/TDD

P25 (US)

TETRA TETRA 2

GSM-R

?

?

Com

merc

ial ra

dio

te

chnolo

gie

s

Priva

te r

adio

te

chnolo

gie

s

1996

2006

2010

Communication Network Transformation

From: Separated service networks

Each service has its own network A mix of networking technologies

Optimization Simplification

To: Converged service network

All services in one network

Customer Benefit: Provides common communications foundation

for all rail applications to reduce CAPEX and OPEX

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BUT Alcatel-Lucent understands what makes the rail customers different

1. Life expectancy – “only change it when absolutely necessary”

considerably longer than a carrier, who would be typically driven to

upgrade to offer new services, reduce its operational expenditures,

derive new revenue streams… more about this later!

2. Standards – in addition to traditional telecoms standards, the Railway

has its own set of rules to ensure safety and interoperability, proving

compliance to these standards is a costly business

3. Environment – Physical and electrical (EMC) environments are far

worse than a more controlled carrier environment

4. Signalling Requirements – Every new type of signalling system

relies and interacts more and more with the communications backbone.

This is particularly true for radio based signalling

5. Control and supervision – as opposed to just sending voice and

data (being a pipe), the Railway must be in control of the system at all

time


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4. Conclusion

AGENDA

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When all put together...

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Let’s assume HappyRail Co has bought this!

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Now they Can -

LOWER OPEX / INCREASE REVENUE

INCREASE SAFETY/ SECURITY

IMPROVE PASSENGERS SATISFACTION

A. OPERATIONAL • Quantifiable financial benefits of deploying new approach

B. SAFETY / SECURITY • Difficult to quantify and produce business case but often required through legal requirements

C. PASSENGERS RELATED SERVICES • Applications used to retain existing customers • Applications used to gain new customers • Multi-Modal applications

• Look beyond the immediate savings brought by a converged network topology… • Enjoy the flexibility of remote network management through a visual interface… • Benefit from an all IP infrastructure…

But most of all they can unleash the real value through applications!


1st Application Smart Infrastructure

• SBB aims to achieve cost savings of up to 15% from more efficient technologies

by 2017-2018 using M2M solutions

• Energy / Electrification / Smart Grid concept

• Condition based maintenance,

Limited track possession, etc…

Capacity

Carbon

Cost

Customers

Business Impact

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Intelligent Infrastructure - Wide ranging usage

LEVEL CROSSING MONITORING

CIVIL STRUCTURES MONITORING

POINTS MONITORING

INTEGRATED CONTROL AND MANAGEMENT SYSTEM

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So how does it help the business?

• “Predict and Prevent” Maintenance

• Improved first time fix

• Arrive at site with information = the

right people, right equipment

• Fewer fault callouts and reduced “no

fault found”

• Develop asset performance knowledge

over time

• Reduce expenditure for us

• Reduce train delay for our

customers

Source :


2nd Application Smart Rolling Stock

• Remote Monitoring of Rolling Stock assets

• More efficient maintenance – less downtime

• Condition based maintenance

• Infrastructure monitoring in real time

• Energy efficiency

• Potential saving of 20% delay minutes

Capacity

Carbon

Cost

Customers

Business Impact


3rd Application Security concerns

• Live Video Streaming from moving trains or live access to DVR recorded images after an incident

• Level Crossing remote surveillance for Driver or control centre

• Single Driver Operation in Urban Rail environment

Capacity

Carbon

Cost

Customers

Business Impact

• On-board video-surveillance

LTE enabling high quality live video transmissions

1. Detection

2. Dispatch

3. Response


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4. Conclusion

AGENDA

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Conclusion Timely Decisions and Unforeseen Benefits

2 | Given the evolution pace of the Telco industry, not is not the right time to be shy and overly conservative.

5 | A number of benefits can be extracted from a modern comms network through innovative applications

3 | Clear financial benefits can be extracted from making the right technological decisions

4 | Whether wireline or wireless, an all IP infrastructure makes life easier to add extra systems to serve new applications

1 | Alcatel-Lucent understands what serving the rail customers means and has done so for more than 75 years

6 | Telecommunications are the highest growth area in the Rail Market!

www.alcatel-lucent.com


Challenges

Fully Automated Driverless Railway System Solution

High RAMS required Communications Package Solution

Solution

Full communications package

Full On board communication system for driverless train operation

Data transmission network for CBTC Signaling system

Benefits

Complete end-to-end communications.

Integration with signaling system for driverless train operation

Carrier grade infrastructure to ensure RAMS requirement

Complete on board comm. Standard Package

Case studies Macau LRT (Light Rapid Transit) Project


Sweden’s transportation agency is responsible for rail, road, maritime and air transportation systems.

Challenges

Complex network

No support for new services

End of life for older products

Need to reduce OPEX

Solution

Upgrade to single rail communications system

Converged IP/MPLS infrastructure

All IP 10-gigabit national network

Common management platform

Benefits

Simplified network operation - single easy to use interface.

Able to safely migrate all traffic from multiple legacy networks

Carrier grade Ethernet exceeded ITU-T standards

New revenue generating opportunities

Case studies Swedish Transport Administration

http://www.trafikverket.se/


Connecting Delhi’s Indira Ghandi International Airport to the Delhi central train-station.

Challenges

Reduce travel time downtown-airport to 20 minutes

Premium passenger experience

Solution

Full communications package

SDH + Ethernet core network

Complete turnkey - voice, data, tunnel, CCTV, displays, emergency services comms.

Benefits

Complete end-to-end communications.

Integration with signaling to announce train arrivals

Carrier grade infrastructure to ensure reliability

Complete passenger information for both trains and flights

Case studies Delhi Airport Metro Express (DAMEPL)

mr. oliver andre the hidden costs and benefits of the telecommunications systems

Business

spain dehli metro rail

poland sintra metro

switzerland guangzhou

south changchun metro

chinadenmark xian metro

shanghai rail transit

uk shenzhen metro line

france st petersburg