High Speed Internet Access Developments And VPNs “Building Profitable Internet Access Networks”

1. High Speed Internet AccessDevelopments And VPNs “Building Profitable Internet Access Networks” Sibel Serhan Ozcan Internet Access Alcatel Telecom

2. Presentation overview • Drivers for broadband Internet Access: • Market growth • Network overload • Applications • Services • Internet business approaches for network operators • Data in Access Networks • ATM, frame and IP level concentration to enable transparent VPNs for both ISPs and corporate clients 4th Internet Conference, Istanbul/ Sibel Serhan Ozcan

3. Internet boom *Constant Average Growth Ratio (CAGR) ‘96-2000 4th Internet Conference, Istanbul/ Sibel Serhan Ozcan

4. 2 PSTN/ISDN 3 1 Internet Data network Network congestion areas Transit exchange Local exchange Local exchange Local exchange Local exchange Analog Modem ISDN ISP POP Possible areas of congestion ISP: Internet Service Provider POP: Point Of Presence 4th Internet Conference, Istanbul/ Sibel Serhan Ozcan

5. RAN PRA PRA RAN xDSL Modem BB RAN RAN network positioning ISP RAN CO Data / InternetService Providers Data Backbone TE LE CO Telephone Network SAN LE RAN : Remote Access Node SAN : Subscriber Access Node LE : Local Exchange TE : Tandem/Trunk Exchange CO 4th Internet Conference, Istanbul/ Sibel Serhan Ozcan

6. Summary service requirements XXX: Crucial requirement XX: Very important requirementX: “Nice-to-have” requirement 4th Internet Conference, Istanbul/ Sibel Serhan Ozcan

7. Internet applications • Current applications continue to grow: • Promotional / business sites • Academic and government users • Adult content • E-mail • Chat and interest groups 4th Internet Conference, Istanbul/ Sibel Serhan Ozcan

8. Internet applications • New application drivers: • Always-on applications • Work-at-home • Entertainment • Voice over Internet • Video and audio streaming • Corporate users 4th Internet Conference, Istanbul/ Sibel Serhan Ozcan

9. New applications require higher bandwidth VDSL ADSL ISDN PSTN LAN-to-LAN High quality video CD Library VR applications Access Technology Wordprocessing, spreadsheets VOD, film library Video conferencing Radio WWW browsingPresentations E-mail, chat box Telephony Text Image Sound Video Application types TodayTomorrow Applications versus access (speed) technology 4th Internet Conference, Istanbul/ Sibel Serhan Ozcan

10. Bandwidth requirements • Early bandwidth requirements for high speed users: • Downstream: 500 kbit/s - 1 Mbit/s • Upstream: 200 - 500 kbit/s • “10 times the performance, at twice the price” • High concentration factors • Once the service takes-off and revenues are there, this requirement will rapidly evolve 4th Internet Conference, Istanbul/ Sibel Serhan Ozcan

11. Bandwidth requirementsExamples • Remote access to business: average presentation file size ‘95 ‘96 ‘97 200 Kbyte 460 Kbyte 2 Mbyte • Internet access: typical Microsoft game is 10 Mbyte • Downloadtimes: 4th Internet Conference, Istanbul/ Sibel Serhan Ozcan

12. Some misunderstandings... • There exist no broadband services • Backbone network will never cope with ADSL speeds • Servers will never cope with ADSL speeds • Technology for high speed Internet is available today 4th Internet Conference, Istanbul/ Sibel Serhan Ozcan

13. Positioning of applications / services from Network Operators towards Customers Very high revenue per user Very low revenue per user Revenueoperator Important revenues Highest total revenues Lowest chanceon high revenues Important revenues Nice to have >> Interested >> Very interested >> Fundamental need Customer needs 4th Internet Conference, Istanbul/ Sibel Serhan Ozcan

14. Revenue per user for operator Residential user needs Residential users services NotificationForwarding Videotelephony Kiosk access Filtering QOS:port availabilitybandwidth On-line registrationProfile / access mgt InteractiveVOD / IP Telephony over ISDN PC to Phone/FaxBrowse & Talk New (higher speed) apps over IP(radio, home shopping, etc.) Telephony over POTS Phone-Phone over IP - LD / LQ & LC Web surfing(e-mail, news, WWW) 4th Internet Conference, Istanbul/ Sibel Serhan Ozcan

15. IP@ATMADSL IP@ATM Revenue per user for operator Now Short Term (<1 year) Medium Term (>1 year) Residential user needs Residential users services Technology perspective Services resulting fromIN - TMN - SMC - RAN NotificationForwarding Videotelephony Kiosk access VPN Filtering QOS:port availabilitybandwidth On-line registrationProfile / access mgt InteractiveVOD / IP Telephony over ISDN VoIP PC to Phone/FaxBrowse & Talk New (higher speed) apps over IP(radio, home shopping, etc.) Telephony over POTS Phone-Phone over IP - LD / LQ & LC Web surfing(e-mail, news, WWW) 4th Internet Conference, Istanbul/ Sibel Serhan Ozcan

16. Revenue per user for operator Corporate and Service Provider needs Enterprises and Service Provider services Kiosk Access& Invoicing Invoicing QOS:bandwidthaccess ports Data Integrity& Confidentiality High SpeedAccess & Switching(E3/T3, STM-1) AAA Services AAA ProxyServices Filtering Medium SpeedAccess & Switching(T1/E1, n*64) Access Coverage:geographical distributionaccess types 4th Internet Conference, Istanbul/ Sibel Serhan Ozcan

17. IP@ATM IP@ATMxDSL Revenue per user for operator xDSLATMISDNGPRSCableModem Now Short Term (<1 year) Medium Term (>1 year) Corporate and Service Provider needs Enterprises and Service Provider servicesTechnology perspective VPN Kiosk Access& Invoicing Invoicing QOS:bandwidthaccess ports Data Integrity& Confidentiality High SpeedAccess & Switching(E3/T3, STM-1) AAA Services AAA ProxyServices Filtering Medium SpeedAccess & Switching(T1/E1, n*64) Access Coverage:geographical distributionaccess types 4th Internet Conference, Istanbul/ Sibel Serhan Ozcan

18. Impact on the telco network • Studies on current telco networks warn for potential congestion • Main reason: long holding times of Internet calls • Today, already in countries without timed telephone billing for local calls (US, Australia, etc.) • Tomorrow, all over the world? 4th Internet Conference, Istanbul/ Sibel Serhan Ozcan

19. Presentation overview • Drivers for broadband Internet Access: • Market growth • Network overload • Applications • Services • Internet business approaches for network operators • Data in Access Networks • ATM, frame and IP level concentration to enable transparent VPNs for both ISPs and corporate clients 4th Internet Conference, Istanbul/ Sibel Serhan Ozcan

20. Content Providers ISP / OSP(AOL, Compuserve, T-On-Line, WANADOO, Havas-On-Line) IAP TELCO (Incumbent, New Operators) USERS Data Networks (FR, ATM, IP) POP POP InternetTomorrow POP: -Remote Access -Routing -Mail/News/... -AAA GSTN (PSTN, ISDN, Mobile) SOHOs NetworkAccessPoint(NAP) Access (Wireline, Wireless,ADSL, WW) Residentials InternetToday POP: -Remote Access -AAA gateway Transport (SDH,PDH) The Internet spreads out Professionals 4th Internet Conference, Istanbul/ Sibel Serhan Ozcan

21. Business case for Network Operator“Acting as ISP” Main POP Remote Access Network To other ISPs SMC RAN Router Data Backbone RAN RAN External Servers • ISP SMC: • Authentication • Authorization • Accounting SMC: Service Management & Customer Care CentreRAN: Remote Access Node RANs in distributed (remote) POPs 4th Internet Conference, Istanbul/ Sibel Serhan Ozcan

22. Business case for Network Operator“Concentrating traffic for ISP” ISP PROXY IAP SMC ISP Dial-in users Proxy SMC RAN Remote Access Network Data Backbone RAN Routing RAN RAN • Proxy SMC: • Identify ISP destination SMC • Protocol translation towards SMC • IP pool management • RAN port management • ISP accounting • ISP SMC: • Authentication • Authorization • Accounting 4th Internet Conference, Istanbul/ Sibel Serhan Ozcan

23. Business case for Network Operator“Concentrating traffic for ISP” ISP PROXY IAP SMC ISP Dial-in users SMC RAN Remote Access Network Data Backbone RAN Routing RAN RAN ISP Transparent Pipe SMC • Local Telco SMC: • Identify destination tunnel • RAN port management • ISP accounting Data Backbone RAN To other ISP Routing RAN • ISP SMC: • Authentication • Authorization • Accounting ISP dial-in users 4th Internet Conference, Istanbul/ Sibel Serhan Ozcan

24. Business case for Network Operator“Outsourcing for the corporate”Providing access to “Intranets” • Extended ISP SMC: • Full AAA functions • VPN capabilitywith remote control • Remote VPN terminal: • Access to VPN view ontelco SMC for AAA functions IAP RAN Data Backbone Home Worker Main Office RAN RAN Corporate Intranet SOHO FW Data Backbone Remote Office Applications FW : Firewalls FW 4th Internet Conference, Istanbul/ Sibel Serhan Ozcan

25. Presentation overview • Drivers for broadband Internet Access: • Market growth • Network overload • Applications • Services • Internet business approaches for network operators • Data in Access Networks • ATM, frame and IP level concentration to enable transparent VPNs for both ISPs and corporate clients 4th Internet Conference, Istanbul/ Sibel Serhan Ozcan

26. W W Data Networking explosion10% growth a month What Access is for telephony... Access Access End User Public Telecom Operator End User Access Is Remote Access becoming for data networking Remote Access L2/3 Data Network ISP’s, corporates modem RAN PSTN, L2 data, ADSL , GSM, ISDN, HFC, .. Access Service Providers Access Provider

27. Vision 2000 • Internet is a disruptive technology: • compare to Mainframe -> Mini -> PC evolution • Data will become dominant: • no supplier or operator has won yet • large growth still allows everybody to succeed: “everybody is under attack and liable to loose” • however, those who do not follow the fundamental changes, will be out in 3-5 years from now (cfr. mainframe / mini suppliers) • Speed at which data will take over, determines this industry transition

28. SDH PSTN ISDN ATM FR Ethernet IP as internetworking layerand interface to applications IP unifying layer for data oriented applications Data oriented Applications IP L3 L2 L1

29. Drivers for the “data future” • Corporate users drive the market: • IT applications --> on Internet platforms • also non-data-telecom apps (fax, voice) --> data environment • major impact on 50% of international voice traffic • business telephony --> data (Internet) based to: • integrate services: application sharing • save cost: currently large arbitrage • Growth in the residential area will strengthen this • Are (data) networks ready to cope with this? • high value market • high volume market

30. The “data future” Evolve from Switched environment OR Routed environment towards an integrated L2 / L3 network architecture: “The new data-based architecture” ISP ISP Router withintegratedaccess PSTN Switch ADSL, WLLAccess Users Users Corp Corp

31. W W The new data-based architecture Remote Access L2/3 Data Network ISP’s, corporates modem RAN PSTN, L2 data, ADSL , GSM, ISDN, HFC, .. Access Service Providers Access Provider QOS High-Speed L2/L3 Switch L2/L3 VPN QOS Forwarding L2 QOSAccess

32. Why L3 needed? L1/L2 technologies such as • ADSL access • FITL access • Wireless access • ISDN switching • ATM switching • … have limited added value

33. Why L3 needed? L3 services such as • high speed Internet access to allow residential users to connect to their familiar ISP • virtual Intranets address individual enterprises with their corporate users • virtual Extranets address groups of enterprises • … are easier to sell to end-customers andhave more value

34. Why keeping L2 and L3 separated? • Build the most cost effective L2 access in every individual situation: • ISDN, WLL, ADSL, cable modem, satellite will all co-exist since all position the best in a certain environment • provide L2 QOS aware data concentration to optimize transmission cost • “simple functions” provide the most cost effective implementation • Guarantee very high availability, i.e. stability is prime: “once it works, don’t touch” • no frequent upgrades • simple functions to have fewest possible problems • straightforward L2 system with QOS based data concentration

35. Why keeping L2 and L3 separated? • Build a common L3 function manageable by one group / division who sells this to end-users (residential, business): • offer same, value added functions for all access mechanisms • high computational environment --> use adequate L2/L3 devices • provide reliability by duplication: hardware, system, etc. • continuous evolution of functions: regular upgrades • L3 differentiates the services of the operator

36. Why keeping L2 and L3 separated? • Operator organizational aspects: • different access systems are served in different divisions • one division can supply the same L3 services to all customers, independent of (access and other) technologies used • operational management will be logically split: • L2 needs an extensive infrastructure provisioning management • L3 needs a business / service provisioning management

37. A S A M W W A S A M W W Remote Access networking modelATM (L2) connectivity Service Providers Access Provider End User AAA server ... ... ANT ATM backbone mini-RAM ISP’s RAN ... ... Corporates ... ANT mini-RAM AAA: Authentication, Authorization & Accounting L2 network L3 network

38. A S A M W W PPP over ATM MAC, IPover ATM A S A M W W Remote Access networking modelATM (L2) connectivity Service Providers Access Provider End User AAA server ... ... ANT ATM backbone mini-RAM ISP’s RAN ... ... Corporates ... ANT mini-RAM AAA: Authentication, Authorization & Accounting L2 network L3 network

39. A S A M ... W ... W ANT mini-RAM W W L2 network L2/L3 network Remote Access networking modelL2-L3 connectivity - Model A Service Providers Access Provider End User Service Management AAA server Proxy ATMNetwork ISP’s VC-pipes DataNetwork ... BB-RAN (DANA) IP-tunnels Corporates RAN

40. Service Authentication and Authorization Accounting VPN basedconcentration A S A M MAC, PPP, IPover ATM ... Session handling Network Adaptation W ... W ANT IP overdata mini-RAM Network Adaptation Data handling Line TransmissionEquipment Integration Network Adaptation W W L2 network L2/L3 network Remote Access networking modelL2-L3 connectivity - Model A Service Providers Access Provider End User Service Management AAA server Proxy ATMNetwork ISP’s VC-pipes DataNetwork ... BB-RAN (DANA) IP-tunnels Corporates RAN

41. VPN basedconcentration A S A M PPPover ATM Session handling Network Adaptation W W Service Authentication and Authorization Accounting Session handling Network Adaptation Line TransmissionEquipment Integration Network Adaptation PPP throughtunnel W W L2 network L2/L3 network Remote Access networking modelL2-L3 connectivity - Model B Service Providers Access Provider End User Service Management ... ATMNetwork ... ANT mini-RAM ISP’s VC-pipes DataNetwork ... BB-RAN (DANA) IP-tunnels Corporates AAAserver RAN

42. Wireless MSAN Cable modem A S A M W W PSTN(modem) RAN W W LEX (ISDN) PSTN/ISDN L2-L3 networking modelHeterogeneous access networks Service Providers Access Provider End User Service Management AAA server ... ... ANT mini-RAM DataNetwork ISP’s VC-pipes DataNetwork ... BB-RAN (DANA) IP-tunnels Corporates One single interfaceindependently of all access technologies served AAAserver RAN L2 network L2/L3 network

43. L2-L3 networking model VPN logical connectivity • Virtual Private Networking (VPN) allows to build separated logical networks optimized to individual customer groups • serve many customer groups on one physical network • resell physical infrastructure to many customer groups • The L2-L3 VPN network allows the operator to implement for the different VPN customers: • different QOS levels between and within the logical network • individualized IP routing: e.g. to allow overlapping proprietary routing addresses • private Ethernet (bridged) networks • users, services and tariffs per customer group • different accounting per customer group

44. A S A M ... W ... W ANT mini-RAM W W L2-L3 networking modelVPN logical connectivity Service Providers Access Provider End User Wireless MSAN Service Management Cable modem AAA server ISP’s DataNetwork ... PSTN (RAN) BB-RAN (DANA) VC-pipes Corporates IP-tunnels LEX (ISDN) AAAserver PSTN/ISDN RAN L2 network L2/L3 network

45. Remote Access L2-L3 networking modelSummary The L2-L3 network model offers key advantages: • a widely acceptable business model providing equal access for all parties --> win-win for all, i.e. network operator, ISP, enterprises • a low-cost network through easy provisioning and scalability: cost effective long-term operations --> “zero provisioning objective” Internet access solution • a differentiated solution: • QOS Service levels: key to differentiation • VPN services: key to profitability

46. The New Internetworking Coms Environment Convert technologies into services: Enhanced access:ADSL, FC, WLL, Satellite, ... Remote PSTN access (modem, ISDN, V.110) Voice BB RAN VoiceGway Service Mgt. Gatekeeper VoIPservices Remote accessservices High-speed Internetaccess services 4th Internet Conference, Istanbul/ Sibel Serhan Ozcan

47. Presentation overview • Drivers for broadband Internet Access: • Market growth • Network overload • Applications • Services • Internet business approaches for network operators • Data in Access Networks • ATM, frame and IP level concentration to enable transparent VPNs for both ISPs and corporate clients 4th Internet Conference, Istanbul/ Sibel Serhan Ozcan

48. Network architecture overviewand IP awareness NetworkAccessPoints (NAP) Intelligent Network TMN PDH, SDH Network Residential Remoteworkers Remoteoffices PSTN, ISDN Network Data Network X.25, FR, ATM Internet Access Network ISPs: Applications (Mail, News, Web) Caching Access Network IP Routed Network xDSL Access Network To data network Mobile (GSM, GPRS) Network Content Providers Enterprises Access Routers IP awareness:Full >> Some >> None 4th Internet Conference, Istanbul/ Sibel Serhan Ozcan

49. Universal Access POP Mega RAS POP Direct Access POP ADSL POP Cable Modem POP Universal Access POP Mega RAS POP Direct Access POP ADSL POP Cable Modem POP Universal Access POP Residential NMC SMC Narrowbandaccess PSTN ISDN GSM ISP services Core Data Network Dataswitching SOHO Core ATM Backbone Network Remote Office Fixed line & Data Network Main Office SP, CP Core IP Network SOHO ADSL Access Network PDH / SDH Network Broadbandaccess Datarouting Data transport CATV Access Network Residential International Connections 4th Internet Conference, Istanbul/ Sibel Serhan Ozcan

50. Network Management The Management Environment Customer Care & Network Trouble Mgt. Other (ISP) Service Management Fault Correlation Performance & Capacity Management Service Management Proxy Mgt. VPN Mgt. Umbrella Mgt. Network View Service Pack. Billing & Accounting. Network ElementManagement Networks User and Service Mgt. RAN Conf. & Fault Mgt. Radius SNMP NB - BBR A N Money generation Cost saving 4th Internet Conference, Istanbul/ Sibel Serhan Ozcan