A review of current trends and challenges in the Carrier Ethernet services market, various deployment strategies adopted by service providers and their effects on network access planning

1. Premium Carrier Ethernet
Services:
Strategies for Cost-Reduction and
Expansion Beyond the Metro
October 2011
Carrier Ethernet Strategies 2011 Slide 1

2. Agenda
• Carrier Ethernet: Current Market Trends and Challenges
• Carrier Ethernet Deployment Strategies
• How RAD Addresses Market Challenges
• Conclusion
Carrier Ethernet Strategies 2011 Slide 2

3. Carrier Ethernet –
Current Market Trends
and Challenges
Carrier Ethernet Strategies 2011 Slide 3

4. 1. Carrier Ethernet Beyond the Metro
• Ethernet services are now offered with a national and global
reach, typically spanning multiple provider networks
• Requires effective service management tools for:
– Uniform service attributes across the different networks
– Maintaining end-to-end SLAs with class of service (CoS) consistency
– Visibility
• Relevant standards are being developed
by the MEF; Ethernet Exchanges available
• Evolving need for “wholesale
demarcation” to terminate wholesale
services and to separate wholesale and
SP networks
Carrier Ethernet Strategies 2011 Slide 4

5. 2. Competition and Price Pressures
• Overall, higher adoption rate of Carrier
Ethernet services increases competition
– SPs need to differentiate offering
– Service price pressures in certain markets
• As a result, service providers need to
lower TCO by driving down CapEx and
OpEx
– Network equipment vendors are
expected to assist
Carrier Ethernet Strategies 2011 Slide 5

6. 3. Network Convergence
• Save costs and simplify operations by
using the same infrastructure for
wholesale, business, mobile backhaul,
and even cloud connectivity services
– Tier 1 fixed-mobile operators or major
regional SPs with retail and wholesale
networks
– Reduce complexity and TCO with unified
purchasing, homologation, training,
service production, OSS
• Multi-functional devices from a single
vendor have become more attractive
Carrier Ethernet Strategies 2011 Slide 6

7. 4. Gaining Acceptance in New Territories
• Carrier Ethernet gaining popularity in new
markets
– Where EVPL offerings were not previously
considered
– First steps in moving from Best Effort
broadband to Carrier Ethernet SLAs
• Primarily LATAM, Eastern Europe, some
parts of APAC
• As competition grows, first carrier to
offer premium services is likely to lead
others
• Deployment strategies differ from those
in mature markets
Carrier Ethernet Strategies 2011 Slide 7

8. Carrier Ethernet
Deployment Strategies
Carrier Ethernet Strategies 2011 Slide 8

9. Carrier Ethernet Deployment Strategies:
The CapEx/OpEx Divide
• Carrier Ethernet service deployment
decisions made by SPs in mature
markets are typically OpEx-driven
– Sophisticated traffic management
capabilities are required for advanced,
multi-CoS services and to maximize
network utilization (oversubscription)
– Performance reporting is considered a
must/premium by customer
– Ethernet access intelligence extended
to the customer premises
Carrier Ethernet Strategies 2011 Slide 9

10. Carrier Ethernet Deployment Strategies:
The CapEx/OpEx Divide (Cont’)
• In APAC, CALA, Eastern Europe/Russia,
where service providers are not yet
SLA-driven, decisions are more CapEx-
sensitive
– Basic traffic management for limited
CoS levels offerings; carriers rely on
fiber capacity to meet bandwidth
requirements
– Performance reporting not a priority
for customers/carriers, BUT:
Operations dept may require it
Regulator may require it (e.g. Russia)
– Ethernet access intelligence resides in
POP/PE
Carrier Ethernet Strategies 2011 Slide 10

11. How RAD Addresses
Market Challenges
Carrier Ethernet Strategies 2011 Slide 11

12. EtherAccess Portfolio
• A full selection of NTUs from a single-source supporting access
speeds from 1 Mbps to 10 Gbps, and a carrier-class high capacity
Ethernet aggregation platform
• Uniform Carrier Ethernet “look and feel” from the CPE to the PE
– Common capabilities allow same service definition regardless of the
access technology
– Same management, CLI and
MIBs Ethernet over PDH
10BT
Ethernet over SDH/SONET
EoPDH
– No issues of 10BT EoPDH
STM-1/OC-3
GbE
interoperability, n x EoPDH
Bonding SDH
GbE
SDH/SONET
GbE
100BT
configuration, OSS STM-1/OC-3
GbE
STM-4/OC-12
integration
GbE
100/1000BT n x EoCU
100BT 10GbE
Packet Switched GbE Bonding 10/100BT
GbE
Network
1000Sx GbE
GbE EoCU 10BT
Ethernet over Fiber Ethernet over DSL
Carrier Ethernet Strategies 2011 Slide 12

13. Meeting Carrier Ethernet Challenges (1)
Challenge • Seamless hand-off between wholesale and SP
• Carrier Ethernet domains
extending from the • Complete visibility and control, CoS consistency
Metro
across multiple access technologies and networks
• Service validation and turn-up with built-in test-
head capabilities and enhanced loopback
functionalities
Solution
• Wholesale demarcation
Carrier Ethernet Strategies 2011 Slide 13

14. Meeting Carrier Ethernet Challenges (2)
• Enable differentiation via premium services,
Challenge: coverage, vertical specialization, service turn up
speed, connectivity options
• Increasing
Competition • CapEx optimization:
- Cost-optimized design with an ASIC developed in-house
- Licensed-based port activation
- Multi-functional CPEs reduce number of devices
Solution: • OpEx optimization:
- Service lifecycle management and
• Service differentiation
SLA testing capabilities reduce truck
tools
rolls
• Reduce carrier TCO
- Reduce inventory and minimize
forklift upgrades with modular
uplinks, UTP/SFP combo ports and
multi-range power supplies
Carrier Ethernet Strategies 2011 Slide 14

15. Meeting Carrier Ethernet Challenges (3)
• Same platform can be deployed for business,
Challenge
wholesale and mobile services
• Converged network
infrastructure • Common platform and management system
simplifies production for operations and
purchasing
• Support for TDM pseudowire
• Integral timing synchronization
Solution • Same CPE can be deployed for fiber, PDH and DSL
• Support multiple access
applications and topologies
with a single platform
Carrier Ethernet Strategies 2011 Slide 15

16. Meeting Carrier Ethernet Challenges (4)
• For OpEx-sensitive markets:
Challenge
- Smart NTUs with best-of-breed Carrier Ethernet
• Diverse requirements capabilities to enable multi-CoS VAS with
• The CapEx/OpEx divide performance reporting and to drive down OpEx with
fault management, testing and oversubscription
• For CapEx-driven deployments:
- Smart aggregation to work opposite low-cost CPEs
Solution • Seamless migration from basic to premium
• A choice of solutions offerings
for various markets and
customer needs
Carrier Ethernet Strategies 2011 Slide 16

17. Conclusion (1)
Most notable trends today:
• Extended reach and increasing competition present
Carrier Ethernet SPs with challenges concerning
service management and visibility, differentiation,
cost reduction, and network convergence
• Different deployment strategies dictate versatile
solution alternatives with appropriate focus on
CapEx/OpEx savings
Carrier Ethernet Strategies 2011 Slide 17

18. Conclusion (2)
What RAD has to offer:
• A comprehensive toolbox to support all
deployment scenarios, market segments,
service requirements and access technologies
• No need to resort to “patched” solutions for
different parts of the network or service, or
when needs evolve
• Cost-optimized design
• Timing synchronization expertise
• Most powerful traffic management in a CPE
device
• Established track record with leading
operators around the globe
Carrier Ethernet Strategies 2011 Slide 18

19. Thank You
For Your
Attention
Visit www.ethernetaccess.com for more information
www.rad.com
Carrier Ethernet Strategies 2011 Slide 19