Presentation for Yonsei university

Emerging Services based-on Metro Optical Ethernet

07/27/2002

Jangwoo Son Netmanias.Com E-mail) son@netmanais.com PCS) 016-460-5747 URL) http://www.netmanias.com

Contents
Network Segmentation Emerging Service
Enterprise: Metro Optical Ethernet Service Residential: Video over IP Service

Metro Ethernet Service

Internet Access Service BoD Service Tiered Service IP VPN Service

Video over IP service

Ethernet VDSL

Summary

Emerging Service based-on Metro Ethernet

Emerging Service
Enterprise Market Metro Optical Ethernet Service 0) ; Internet, BoD 1) Enterprise; - Internet access service - VPN service - BoD service - QoS service Consumer Market Service Bundling = {Video + Internet} over Ethernet or DSL
CP
Enterprise (Large, SME) (Single, MTU) Enterprise Networking

Network Segmentation
Edge Access
CPE AN (MTU) SER (MPLS, IPsec) Optical Ethernet (EoDF) NG-SONET(EOS) RPR(EORPR) E-PON ATM TDM/SONET

Core Metro Distribution Core

EN CN SER Edge Router Optical Ethernet (EoDF) NG-SONET(EOS) RPR(EORPR) SONET ATM Metro DWDM(EODL) Core Router ATM Long-haul DWDM

BB

xDSL
Cable Modem

Residential

Optical Ethernet E-PON xDSL Cable Modem

MDU and Home Networking

Service Layer - Edge: Micro-flows, Subscriber aggregation & management, Service creation - Core: Macro-flows, Fast forwarding

Metro Ethernet Service

Router DSU/CSU Native Ethernet Interface Circuit Packet (Statistical Multiplexing) : Internet Access, LAN-to-LAN Interconnection, Metro Transport (Wholesale)

IDC
1GbE

ASP/DBSP/CSP, Internet Broadcasting Retail Center, Game portal service provider Wholesale Service To Other SP

Intellispace Urban Media

BLEC
1GbE

Carrier/ Wireless SP

1GbE

MTU IDC VLL

GbE Ring

Ethernet over DF Ethernet over RPR Ethernet over SONET Ethernet over DWDM POS

ISP ISP
Internet

MTU

Ethernet over DF Ethernet over RPR Ethernet over SONET Ethernet over DWDM POS

Internet access

Long-haul DWDM backbone

GbE Ring

Ethernet over DF Ethernet over RPR Ethernet over SONET Ethernet over DWDM POS

Retail service (to Enterprise) - 1M,2,3,10M,,100M,1000Mbps

LAN-to-LAN Interconnection

VPN Service
MTU
Metro Distribution Ethernet (L2/L3) Metro Core POS (L3)

Anywhere Remote Access (IPsec Client)

MTU

Internet

()

Internet access (BW on Demand)

WAN
Site-to-site VPN (BW on Demand)
MAN IP Routing Network
IP Routing Network (Metro/WAN) , MPLS Router H/W S/W VPN MAN WAN Router POS Metro Edge IPsec SCN (Service Creation Node) SCN Internet access traffic, VPN traffic VPN traffic, IPsec service module (Encryption) Internet traffic, NAT service module (IP ) . SCN node Ethernet aggregation Service Creation (IPSEC VPN, Internet access, NAT, Firewall, QoS) .

WAN

Video over IP Service

MDU OE-TP service
Broadcast HE
Cyber Apartment Access
Receivers/ Demods MPEG2 Encoders TV middleware Server live Video Transport Network (GbE, ATM, RPR) IP Encaps. (Video to IP) Terrestrial Video TN

VoD HE
Video / Control/EPG Servers VoD/NVoD iTV manager servers

PP/CP

CPE
100BaseTX

GbE-R

GbE-R
GbE

POP Internet

ES

ES

GbE

L3

GbE-R RPR (OC48) Ring

Internet Access Network (Ethernet, ATM, POS)

MDU VDSL-TP service

GbE

Broadcast TV traffic
VoD traffic Internet traffic

Ethernet over VDSL

CPE

VDSL DSLAM

Metro Ethernet Service

Router DSU/CSU Native Ethernet Interface Circuit Packet (Statistical Multiplexing) : Internet Access, LAN-to-LAN Interconnection, Metro Transport (Wholesale)

IDC
1GbE

ASP/DBSP/CSP, Internet Broadcasting Retail Center, Game portal service provider Wholesale Service To Other SP

Intellispace Urban Media

BLEC
1GbE

Carrier/ Wireless SP

1GbE

MTU IDC VLL

GbE Ring

Ethernet over DF Ethernet over RPR Ethernet over SONET Ethernet over DWDM POS

ISP ISP
Internet

MTU

Ethernet over DF Ethernet over RPR Ethernet over SONET Ethernet over DWDM POS

Internet access

Long-haul DWDM backbone

GbE Ring

Ethernet over DF Ethernet over RPR Ethernet over SONET Ethernet over DWDM POS

Retail service (to Enterprise) - 1M,2,3,10M,,100M,1000Mbps

LAN-to-LAN Interconnection

 Ethernet Service (2002.3)

Category ELEC Telseon SP IA LL MT Network Architecture Ethernet over DF, DWDM IDC Carrier POP GbE Retail Ethernet SW + EoS over DWDM M,W LL , Retail MTU BW and Price 1Mbps,2,3,...,19,20,30,40,...100,150,200, 250,..., 1Gbps {$5,540/150Mbps + $800/2 Router port}/mon $1,000/100Mbps/Mon. $10,000/1Gbps/Mon. 1M~1Gbps, 1Mbps increment Riverstone Equipment Cogent Cisco ONS15454, 2948G-L3

Yipes Intellispace FiberCity Emerging Metro & Regional Carriers EPIK

Extreme, Juniper Riverstone

Chapter 11

M,W

Ethernet Wholesale (MAN, WAN) SE OED ptp Ethernet circuit

Redback SE OED

Looking Glass OnFiber Sphera

Full-Service CLEC

Time Warner Telecom XO

M,W
M,W

2,000 lit building in 44 metros EoS (ONS 15454) + DWDM (ONI 1500) 200+ customers in 63 metros EoDF EoS (ONS15454) 2,000 lit building in Canada 10Mbps: $700 per port, 100Mbps: $2,500 per port 1Gbps: $14,000 per port Cisco ONS15454, ONI1500

Group Telecom

Cisco ONS15454

Electric Lightwave Traditional IXC AT&T Sprint WorldCom M,W EoS N/A May 2002 EoDF, RPR Internet: 1,2,3,4,5,10,20,30,40,50,100,200,300,400,500,1000M Ethernet Private Line: 50M, 150M, 622M Enterprise Ethernet Metro: 10M, 100M Nortel BPS2000, PP8600, OPE3500 (RPR) Cisco ONS15454

Emerging IXC Broadwing Level3 GlobalCrossing Williams ILEC BellSouth

Phase1: EoS, Phase2: EoDWDM

Chapter 11 M April 2002 : Metro GbE Point-to-Point and Switched Gigabit Ethernet Service RPR . 10Mbps: $760/10Mbps/port(location)/month 100Mbps: $1,520/100Mbps/port(loc.)/month

BellCanada Qwest Verizon SBC

Nortel's 3500 (OPE/RPR)

GigaMAN service: Layer2 ptp or ptmp GbE circuit

Asia-Pacific carriers offering metro Ethernet services (06/2002)

Service Provider Telstra Uecomm China Unicom China Telecom China NetCom Hutchinson GlobalCrossing PCCW BSES Telecom NTT Country Australia Australia China China China Hong Kong Hong Kong India Japan Target customer Businesses Businesses Network deployment More than 100 customers in 1500 locations in 6 metro areas Four metro areas: Brisbane, Melbourne, Perth, Sydney Cisco Enterasys Nortel Extreme Luminous and Extreme Riverstone (undisclosed) Juniper Vendor

Businesses and data centers Transparent LAN services in 8 cities in Guangdong province Residences and businesses Residences and businesses Residences and businesses Businesses Residences Businesses Ethernet service in 4 provinces: Guangdong, Shandong, Hunan, and Jilin Ethernet service in 32 cities in northern China Ethernet services for 1 million customers in HongKong (projected) Ethernet trials (potentially 100 buildings) Ethernet to homes with 80,000 customers by end of 2002 (projected)

Three Metro Ethernet services from NTT East; Urban Extreme, Foundry, Appian Ether service from NTT West in limited metro markets Nortel

KDDI

Japan

Their own optical transport First deployment of RPR in Japan (mobile, residences, and businesses)

Japan Telecom
C&W IDC Crosswave Communication DACOM PowerComm AK Telecom Korea Telecom

Japan
Japan Japan Korea Korea Korea Korea

Businesses
Businesses Businesses Residences and businesses Wholesale Residences and businesses Residences

Metro Ethernet in its ODN initiative throughout Japan

Layer-2 VLAN services with RPR Metro Ethernet to business customers in Tokyo Ethernet to MDU/MTU building in Seoul (with availability to other regions in 2002) Wholesale Ethernet service in Seoul (starting in 2002) Optical Ethernet to backhaul wireless data services Project Ntopia: Ethernet to 80,000 homes and businesses

Riverstone
Nortel, Foundry Ciena and Fujitsu Riverstone Riverstone Extreme Riverstone

SP
Completel

European carriers offering metro Ethernet services (06/2002) Country Target Network deployment Vendor
France Businesses

customer

FastWeb

Italy

Residences and SMB

WIND

Italy

Residences and businesses Service providers (Wholesale) Businesses

Telia

Sweden

13 Ethernet MAN in France, Germany and the U.K. Internet access service PTP and PTMP LAN-to-LAN interconnection (MANWAN ) . MAN (intraCity) Ethernet over dark fiber(VLAN) WAN (inter-City) MPLS . 10Mbps 1Gbps , site customer site BW . Ethernet to 50,000 customers in more than 35,000 buildings in Italy Last-mile Ethernet access 50,000 customer (HH, SMB) Internet, VoD flatrate VoIP . Milan, Genoa, Rome, Naples and Bologna 35,000(, ) . Limited metro Ethernet offering, mostly on a special-build situation (113 8.4M Internet customer) metro Ethernet L2 LAN-to-LAN interconnection. Metro Ethernet infra VPN, VoIP, Internet access . Ethernet service offered in Gothenburg and Lulea

Riverstone

Cisco Catalyst 3500/6500 Core: GSR

Extreme, Cisco * Luminous RPR trial Extreme (via Ericsson), Riverstone

Utfors

Sweden

Ethernet service to 23 cities in Scandinavia Utfors IP retail/wholesale carrier , , , 23 . Ethernet MPLS Internet access, VoIP, VPN. Ethernet access 2, 10, 100, 1000Mbps customer 22Mbps.

B2

Sweden

Neos

U.K.

Sprint Internation al BT Ignite

U.K.

Ethernet service to 220,000 customers in 40 cities in Sweden B2 residential customer Ethernet access 40 220K HH Gaming, Video, Internet access Ethernet . Service Ethernet service in 30 cities throughout the U.k. Providers and Internet access, private line, L2 VPN pure-play businesses Ethernet SP MAN(intra-city/metro), WAN (inter-city/metro) MPLS . 270 customers(100 carrier and 170 enterprise) 1000 . Global Ethernet trial offering to 7 of its POPs in London business

Residences

Extreme and Riverstone Utfors Metro access Extreme Riverstone Ethernet Switch/Router 802.1q VLAN tagging . Core Cisco MPLS GSR Traffic engineering Sycamore 16000 DWDM platform . Cisco Catalyst Ethernet Switch, GSR core router

Riverstone RS3000 MTU, Office park access platform metro and regional POP RS 8600/38000 . Cisco 10720 12000 . DPT (RPR) 10720 MTU POP, 12000 STM-16(Dark fiber) DPT . Undisclosed

U.K.

Businesses

Metro Ethernet LAN connectivity at 10, 100, 1000 Mbps

Market Estimation
North America (Source: RHK March 2002)
Internet access service Revenue via Ethernet
Internet Access Service Revenue via Ethernet [$B]

Metro LAN-to-LAN Interconnection Service Revenue via Ethernet [$B]

Metro LAN-to-LAN interconnection service revenue via Ethernet [$B]
0.7 0.6 0.5 0.4 0.3 0.2 0.1

Wholesale Metro Ethernet Transport Service Revenue [$B]

Wholesale Metro Ethernet Transport Service Revenue [$B]
1.20 1.00 0.80 0.60 0.40 0.20

2.5 2 1.5 1 0.5 0

ELEC IXC/CLEC ILEC

ELEC IXC/CLEC ILEC

ELEC IXC/CLEC ILEC

2001

2002

2003 Year

2004

2005

2006

2001

2002

2003
Year

2004

2005

2006

0.00

2001

2002

2003 Year

2004

2005

2006

2001 2002 2003 2004 2005 2006 ILEC ELEC Total 0.00 0.00 0.00 0.05 0.12 0.30 1.35 1.90 1.56 2.30 ILEC ELEC Total IXC/CLEC 0.14 0.24 0.54 0.88 0.18 0.27 0.59 1.00

2001 2002 2003 2004 2005 2006 0.05 0.09 0.17 0.25 0.32 0.43 0.10 0.15 ILEC ELEC Total IXC/CLEC 0.01 0.02 0.05 0.07

2001 2002 2003 2004 2005 2006 0.00 0.01 0.03 0.10 0.28 0.57 0.18 0.35 0.52 1.15 IXC/CLEC 0.01 0.03 0.08 0.04 0.07

0.04 0.03 0.05 0.07 0.09 0.10

0.00 0.01 0.02 0.02 0.03 0.04 0.06 0.12 0.24 0.34 0.45 0.62

0.03 0.03 0.04 0.06 0.07 0.06 0.15 0.34 0.70

Ethernet Service Revenue [$B]

4.50 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 2001 2002 2003 2004 2005 2006

Service Ethernet Service Revenue [$B]

4.50 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 2001 2002 2003 2004 2005 2006

ELEC IXC/CLEC ILEC

Wholesale LAN I/C Internet

Market Estimation
North America (Source: RHK March 2002)
Total Ethernet Port Shipment into Carrier Metro Network [Ports]
450,000 400,000

Metro Ethernet Ports by Paltform Type [Ports]

900,000 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0 2001 2002 2003 2004 2005 2006

IXC/ILEC-Driven

350,000 300,000 250,000

Ethernet Switching Optical Edge Device Metro DWDM

ELEC-Driven

200,000 150,000 100,000

Transition Period

50,000 0 2001 2002 2003 2004 2005 2006

2001 Worldwide Metro Ethernet equipment market share

Worldwide Metro Ethernet equipment market share by port shipments (2001)

Worldwide Metro Ethernet equipment market share by Revenue (2001)

Metro Ethernet service Network architecture , Ethernet Switch/Router Dark fiber (EoDF ), NG-SONET/SDH ADM(EoS) Metro DWDM/CWDM(EoDL) . Metro Ethernet service Ethernet Switch/Router Dark fiber EoDF . Metro DWDM Point-to-point Ethernet circuit . Data center Carrier POP . 2001 Ethernet Switching/Routing equipment $500M . Riverstone port shipment 38%, 41% 1 . Source: RHK, PSG_Focus_0602.pdf, 06/2002

Startup Ethernet SP: Telseon/Yipes.

MTU
LAN

Ethernet MAN access

Cat5 or fiber

IDC BLEC Intellispace Urban Media GateWay

10/100
LAN

Rate-limiting Packet classification 802.1p/q

Access (Ring)

ASP/DBSP/CSP, Internet Broadcasting Center, Game portal

MTU
LAN LAN

PSTN
Cat1/2/3 Ethernet over VDSL

Ethernet Aggregation
Metro Core Internet

LAN

Dark fiber Network Architecture & Service GSR 802.1p/q

MTU

LAN

10/100
LAN

Ethernet VPN
Access (star)

Backbone (Private)

MTU
LAN

MTU
LAN LAN

Retail service provider

100M
LAN

Cat1/2/3 Ethernet over VDSL

LAN

WorldCom
WorldCom Ethernet Services Metro Private Line Point to Point *** Metro Private Line Multi Point WAN Private Line Point to Point *** WAN Private Line Multi Point Metro Enterprise Ethernet Point to Point Metro Enterprise Ethernet Multi Point WAN Enterprise Ethernet Point to Point WAN Enterprise Ethernet Multi Point Internet Access Tiered *** Internet Access Burstable *** *** Defined and Deployed Internet access 1,2,3,4,5,10,20,30,40,50,100,200,300,400,500,1000Mbps

WorldCom EoRPR Network

Customer A Internet Router Aggregation POP OC192 Customer port mapped To 802.1q VLAN Tag 10/100 BPS2000 Ethernet -rate-limiting

OC48 RPR Ring (EoRPR) GbE

GbE
OPE

-policing 802.1q VLAN tag OC48 RPR Ring (EoRPR)

Aggregation POP

Mapped to RPR

OC48TN

OC48TN GbE

GbE

UUNET INTERNET GATEWAY ROUTER Juniper M40

PP8600 OC48TN

OC192

Internet
GbE Gigabit Trunk to Gateway Router From OC-48 OPE

OC192

OC48 RPR Ring (EoRPR) OC192 OC48TN OC48TN Aggregation POP

OC48TN OPE GbE Aggregation POP with Internet POP

OPE GbE

KORNET-Metro

AN EN

100M

CN

RS38K G G MTU
RAS ADSL DSLAM
DS3/ OC3 DS3/ OC3

RS38K BD GSR
POS OC12/48 POS OC12/48

Metro POP with Internet POP GSR

Internet IX

7500

FLC

FLC

ADM STM-4 (2.5G)

OC3

OC3/12

Long-haul DWDM backbone

SDH N

DSC (D/MUX)
E1

ADM

DSC (D/MUX)

CSU/DSU

AN EN

100M

CN

2 5

. G

RS38K G G MTU
RAS ADSL DSLAM
DS3/ OC3 DS3/ OC3

RS38K BD GSR
POS OC12/48 POS OC12/48

DWDM

7500

FLC

FLC

ADM
OC3

OC3/12

STM-4 (2.5G) ADM DSC (D/MUX)

CSU/DSU

DSC (D/MUX)

KORNET-Metro

Metro Edge
AN

IX

Internet

CO

Metro POP
MTU

Metro POP With Internet POP

CO
AN

Metro POP CO
POS OC48

POS OC48

GbE

Long-haul DWDM backbone

MTU

Customer

Metro Access

Metro Distribution

Metro Core

Function of Edge

Packet classification
User Application flows

Bi-directional Rate-Limiting/Shaping CoS marking (802.1q, TOS, Diff-Serv) Network-based VPN

Service Creation Edge Router (IP Service Switch) QoS

BOD VPN
(1) (2) (3) (4) (5) (6) (7) Internet Access Service: BOD Service Internet Access Service: BOD + Tiered Service Internet Access Service: BOD + Application-Aware Service Network-Based IP VPN Service: BOD Network-Based IP VPN Service: BOD + Tiered Service Network-Based IP VPN Service: BOD + ApplicationAware Service Integrated Service: Internet Access(1,2,3) and IP VPN(4,5,6) Existing IP Core Network

Service Creation Edge

SCER Concept
Bill

Optical Ethernet: BW Next: Service

1000,000won/10Mbps/month 500,000won/5Mbps/month Internet Access Service QoS service VPN service Firewall service

Before

SCER
At Edge

Service: Internet access BW: 5Mbps Price: 500,000 won/month

Bill

After

Service Creation: Intelligent Edge

VPN Approach

Classification(L2/L3/L4) Rate-limiting/shaping(Service + L2/L3/L4) Application-level QoS (802.1p, Diff-Serv, MPLS) VPN (VLAN, IPsec, MPLS) Firewall Service/Policy Provisioning SLA

Service1) Internet access - BW: 5Mbps - QoS: Best-effort Price: 500,000 won/month Service 2) VPN stream 1 - BW: 1Mbps - QoS: Gold - Encryption: IPsec Price: 200,000 won/month Service 3) VPN stream 2 - BW: 10Mbps - QoS: Best-effort - Encryption: IPsec Price: 300,000 won/month Total: 1,000,000 won/month

Legacy ISP: SCN(Ethernet aggregation+QOS+IPsec VPN) + IP Routed Core Startup: SCN(Ethernet aggregation + QOS+ MPLS VPN) + MPLS Core MSP: SCN(Ethernet aggregation + QOS+ VLAN VPN) + VLAN Core

Where is The Edge ?

Access Network: Packet Network (Shared access network)
AN

Edge Micro flows to Macro flows Customer Aggregation Service Creation Before Packet Network Flow Classification Customer Separation BW guarantee QoS/CoS Marking Network-Based VPN
GSR

100M

EN

CN

Edge of Metro Ethernet Access Network

RS38K G G MTU
RAS ADSL DSLAM
DS3/ OC3 DS3/ OC3

RS38K

BD

7500

FLC

FLC

ADM
OC3

OC3/12

Edge of TDM access Network

STM-4 (2.5G) ADM DSC (D/MUX)

CSU/DSU

DSC (D/MUX)

Access Network: TDM circuit (Dedicated BW, Guaranteed QoS)

Internet access service

Enterprise LAN
10/100

Global Internet

MTU
L2 AN SCER

IX KORNET SCER IDC/ASP DBSP/CSP

Enterprise

Game Bandwidth on demand 1) Rate-limiting/Shaping - Enterprise BW - 1kbps ( 2%) 2) Dynamic/Real-time Provisioning QoS - TCP (ftp): End-to-end flow control, Non-real-time, Packet loss (): Rate shaping - UDP (VoIP, Game): Real-time, game Loss : High delay priority

Game Portal

Video Headend

PSTN

Internet access service (1): BOD

Enterprise
Customer A Customer B

5M
10/100

Bandwidth on demand 1) Rate-limiting/Shaping () - Enterprise BW - 1Kbps (2%) 2) Dynamic/Real-time BW Provisioning ()

Global Internet

3M
IX
L2 AN SCER

MTU KORNET SCER Enterprise

IDC/ASP DBSP/CSP

Game
1 Gbps Uplink 100Mbps Customer link A A A Customer A

Game Portal

A
B B

Rate-Shaping

5Mbps

Video A Headend

Rate-Shaping

3Mbps Customer B

B PSTN

100Mbps Customer A link

Rate-Shaping
1 Gbps Uplink 100Mbps Customer link A A A Customer A

A
B B

Rate-Shaping

5Mbps

Video A Headend

Rate-Shaping

3Mbps Customer B

B PSTN

100Mbps Customer A link

Traffic Arrival Rate

Shaping (Delayed and Confirmed), not dropping! 5Mbps Traffic Service Rate Arrival Queued NWC service (shaping) 5Mbps

Internet access service (2): BOD+Tiered CoS

Enterprise
Customer A

5M+Gold
10/100

Diff-Serv enabled

Global Internet

3M+BE More guaranteed flow (Fast and Low loss)

MTU Customer B
L2 AN SCER

IX KORNET IDC/ASP DBSP/CSP

Enterprise

10M+Gold SCER 15M+BE Non-guaranteed flow (Slow and Medium loss)

1 Gbps Uplink

Game
100Mbps Customer A link Customer A 5Mbps: High-priority (Gold)

Game Portal

Video Headend

3Mbps: Low-priority (Silver) 100Mbps Customer A link Customer B

PSTN

Internet access service (3): Application flow BOD

Enterprise Global Internet
10/100

Diff-Serv enabled
IX

MTU
L2 AN SCER

KORNET SCER IDC/ASP DBSP/CSP

Enterprise

5/1M

Game
1 Gbps Uplink 100Mbps Customer link VoIP ftp ftp VoIP Mail Customer A 1Mbps (VoIP/Video): High-priority 5Mbps (Web, ftp, E-mail): Low-priority ftp ftp

Game Portal

ftp

Video Video VoIP VoIP Headend

ftp Mail

Video ftp

PSTN

Network-based IP VPN service

Site-to-site/Remote access service MAN/WAN/Global VPN service Site-to-site VPN: Any-to-any connectivity Service Creation: Edge No Change in existing IP core network One access line for Both Internet access and Private Network
HQ
203.3.3/24 201.22.3/24

BO

Service Creation Edge

10/100

IP-PBX Intranet server

Existing IP Core Network

BO

192.172.3/24

10/100

Network-based IP VPN service

MTU
10/100

MTU
10/100

MAN IPsec VPN service (Encrypted)

L2 AN Metro Edge SCER

KORNET (Seoul)
SCER KORNET Private IP BB Backbone

L2 AN

SEU Internet

SEU

10/100

MTU
KORNET (Busan)
L2 AN

MTU

WAN IPsec VPN service (Encrypted)

SEU

IP VPN
MTU
Metro Distribution Ethernet (L2/L3) Metro Core POS (L3)

Anywhere Remote Access (IPsec Client)

MTU

Internet

SCER

()

Internet access (BW on Demand)

WAN
Site-to-site VPN (BW on Demand)
MAN IP Routing Network
IP Routing Network (Metro/WAN) , MPLS Router H/W S/W VPN MAN WAN Router POS

SCER

WAN

Metro Edge IPsec SCN (Service Creation Node) SCN Internet access traffic, VPN traffic VPN traffic, IPsec service module (Encryption) Internet traffic, NAT service module (IP ) . SCN node Ethernet aggregation Service Creation (IPSEC VPN, Internet access, NAT, Firewall, QoS) .

IPSS market forecast (In-Stat, May 2002)

In-Stat 2001 Worldwide IPSS $158 M . CPE VPN/Firewall (CP H/W, S/W) 2001 $3.2 B IPSS . 2002 28% $202M . Major IPSS Field test Startup . 2002 Network-based VPN service . VPN service , Customer CPE-based VPN IP VPN service outsourcing . Edge Router VPN edge router , Scalability, Performance IPSS Network-based VPN .

Forecast of IP Service Switch Worldwide Sales: 2002 2006 (US$ M, Manufacturer Sales)

Qwest
Qwest IPSS Network VPN . 1999 Network-based VPN service . (May 2002) Network-based VPN service IP service 2002 Q2 . Qwest network-based service (Capex) (Opex) CPE-based . Nortel Shasta Cosine IPSX Nortel Shasta . Qwest

Multi-vendor approach , , .
. Qwest Nortel Cosine IPsec , Customer . Qwest IPSS 4 Network-based services (IPSEC VPN, Firewall, NAT and Routing for Internet Access) . , Network-based VPN service (IPSEC) Site-to-site Remote access service . Customer site premise Router Router VPN traffic Internet traffic IPSS port . IPSS VPN traffic IPSec tunnel Internet traffic edge router nexthop

.
Qwest 4 Network-based service . Intrusion detection Virus protection . VPN service IPSec , VPN MPLS service IPSS . Qwest Network-based VPN service CPE-based managed IPSec VPN service . 10 Network-based VPN service . Qwest 30% . CPE-based VPN Customer . Customer Networkbased VPN service Local loop encrypted . CPE-based managed VPN . Qwest IPSS . Qwest IPSS Criteria : Service available, Scalability, Reliability, Manageability, Cost, Support after the sale Qwest Service management system Web-based Customer provisioning tool . Qwest Qwest Priority .

Network-based IP VPN service (1): Coverage

BO
201.22.3/24

HQ
203.3.3/24

10/100

3Mbps MAN IPsec VPN service (Site-to-site VPN) KORNET (Seoul)

IP-PBX Intranet server

10 Mbps

MTU SCER
L2 AN

SCER KORNET Private IP BB Backbone MTU

10/100

Encrypted IPsec Tunnel

Internet

KORNET (Busan) Remote access VPN

5Mbps WAN IPsec VPN service (Site-to-site VPN)

MTU

L2 AN

SCER

SEU

Network-based IP VPN service (2): Tiered

BO
201.22.3/24

HQ
203.3.3/24

10/100

3Mbps

IP-PBX Intranet server

MAN IPsec VPN service

MTU SCER
L2 AN

10 Mbps
KORNET (Seoul) SCER KORNET Private IP BB Backbone MTU

Encrypted IPsec Tunnel QoS: Gold

Internet

10/100

5Mbps KORNET (Busan) WAN IPsec VPN service

MTU

L2 AN

Remote access VPN

SCER

SEU

Network-based IP VPN service (3): application-aware

BO
201.22.3/24

MAN IPsec VPN service (Encrypted) VPN flow 1: BW=1Mbps, QoS=Gold Application: VoIP/Videoconferencing over VPN

HQ
203.3.3/24

10/100

IP-PBX Intranet server

MTU SCER
L2 AN

KORNET (Seoul) SCER VPN flow 2: BW=5Mbps, QoS=Best Effort Application: Intranet server access, FTP KORNET Private IP BB Backbone Internet MTU
10/100

MTU KORNET (Busan)

L2 AN

SCER

SEU

Edge Node Architecture

Scheduler High Priority Traffic Metering Marking Traffic Metering Marking Traffic Metering Marking Traffic Metering Marking Encryption /Tunnel RT lookup ACL/FW /MFPC ACL/FW /MFPC Queue mgt Queue mgt Queue mgt Flow queue Flow queue Flow queue Rate_f1 f1

100M subscriber link

RT lookup ACL/FW /MFPC f2 f3

Rate_f3

Rate_f5

f4

Encryption /Tunnel

RT lookup

Queue mgt

Flow queue

Rate_f7

GbE uplink

Static Priority Low Priority Traffic Metering Marking Traffic Metering Marking Traffic Metering Marking Traffic Metering Marking Encryption /Tunnel Encryption /Tunnel RT lookup ACL/FW /MFPC ACL/FW /MFPC Queue mgt Queue mgt Queue mgt Queue mgt Flow queue Flow queue Flow queue Flow queue Rate_f2

f5

100M subscriber link

RT lookup ACL/FW /MFPC f6 f7

Rate_f4

Rate_f6

f8 1. Customer identify

Rate_f8

RT lookup

2. Filtering {srcIP, dstIP,srcPort, dstPort}: deny or permit

- MAC Filtering
- ICMP Filtering 3. Traffic Classification {L3/L4}: VPN/Internet, flow 4. Traffic Metering 5. Marking (Diff-Serv) 6. IF VPN traffic - SPD (Security Policy Database) - SAD (Security Association Database)

Bundled Service
Bundled service (Triple play service): Bundled service , Telco, MSO, DBS SP .

DBS SP
2,000 1,800 1,600
Subscribers []

1,400 1,200 1,000 800 600 400 200 116.9 - 10 1995 227.3 35 1996 HSD Primestar 330 104 1997 194 1998 Year 445.8 341 1999 526 667.9 1070 954.4

DirecTV
683

Echostar
2000 2001.12

DBS

broadcast video service All-digital broadcast TV

service/highest picture quality 200+ digital channels/several HDTV channels Content includes local programming/no sports blackouts Extensive NVOD movie offerings

MSO
Cable passes 97% of the 105 M homes in US Take-rate for basic broadcast TV is 68% MSOs have been aggressively consolidating
Comcast/AT&T BB @ 22 M subscribers AOL/Time-Warner @ 13 M subscribers Charter @ 7 M subscribers Cox @ 6 M subscribers

MSOs spent $50 B upgrading networks since 1996

Increases network bandwidth to 750 MHz Adds 200+ digital channels to 80 channel analog offering Drives fiber to down to 500 homes (as few as 150 homes) Enables two-way capability for Internet access & telephony

MSO

Internet

Access: Cable Modem leads ADSL 70% to 30% Now providing voice to 1.5% of homes Standards: Helping enable data & voice

Telephony: CableLabs

Video/Data/Voice triple play: Full-Service Bundle

Minimizes broadcast video churn (~30%/year) => huge savings for operator Also, minimizes billing & operations expense

Example Full-Service Bundle

Anticipated Monthly Revenue Service
Basic Broadcast TV Premium Subscription Channels Internet To TV Personal Video Recorder Video On Demand High Speed Internet Access Local Telephony Long Distance Telephony Per Service $25-35 $12 $10-$20 $8-$10 $38-85 Per Category Per Customer

$5
$25-50 $10-30 $20-30 $30-60 $25-50

$80-150

40% of households somewhat/very interested in FS bundles MSOs expect ~$100/m from bundled customer May ultimately trigger permanent disconnect of Telco

Telcos missing link : Video Service PC

DSL modem
Home Gateway (STB, PVR, VoIP)

TV

Home Gateway (STB, PVR, VoIP)

Ethernet

MDU Video Service Network Architecture

Broadcast HE Cyber Apartment Access
Receivers/ Demods
MPEG2 Encoders TV middleware Server live Video Transport Network (GbE, ATM, RPR)

VoD HE
Video / Control/EPG Servers VoD/NVoD iTV manager servers

PP/CP
IP Encaps. (Video to IP)
Terrestrial Video TN

CPE
100BaseTX

GbE-R

GbE-R
GbE

POP Internet

ES

ES

GbE

L3

GbE-R RPR (OC48) Ring

Internet Access Network (Ethernet, ATM, POS)

Apartment
GbE Broadcast TV traffic
Ethernet over VDSL

CPE

VoD traffic Internet traffic

VDSL DSLAM

Where is the Video Delivery $ Today?

Broadcast TV vs Voice, HS Internet access & other video
Cable VoD (projected in four years) $2

VCR/DVD Rentals Cable & Satellite PPV

$10 $1 $1.2 $2.3 Year-end 2001

Telco HS Internet Access Cable HS Internet Access

RBOC - Residential Voice $9 Satellite - Subscription Broadcast TV Cable - Subscription Broadcast TV

$77

$31

$0

$10

$20 $30 $40 $50 $60 Annual Revenues ($B/year)

$70

$80

Total Broadcast TV Revenue = ~$40 B Average Broadcast TV Spending per Household = ~$32/m

VoD over IP service revenue forecast (2002-2006)

Geographic Summary Of Subscribers - VOD Over IP Networks (thousands of total participants using VOD-over-IP Networks)

Geographic Summary Of Dollar Value - VOD Over IP Networks (Annual dollar value $ millions (US) geographic summary of dollar value of VOD-over-IP Networks) VOD over IP over DSL or Cable modem service , CATV VoD . 2006 , VoD over IP total participants 17.3M Service revenue $1.89B ( MDU/Home, DSL/Cable modem .) VoD over IP Contents Adult. 2002 Worldwide consumer VoD over IP service revenue $460M , 98% Adult contents service . VoD contents Family-oriented VoD Content Service 2004 Family-oriented VoD Content Service SVoD PPV participant Adult contents service user , 2006 Adult service . 2006 Worldwide consumer 40% High-speed Internet access connection VoD over IP service . Source: Consumer Oriented Video-On-Demand Via IP Networks, In-Stat, May 2002

Network Element Requirements

Segment Requirement B-TV Headend CP/PP MPEG2/4 encoding IP IP encapsulation . VoD Headend
B-TV packet TN QoS marking (Diff-serv, 802.1p) . VoD server stream cost $ . VoD packet TN Access Network QoS marking (Diff-serv, 802.1p) . VCR-like VoD control . : VoD , NVoD Key: Big BW, Cost, QoS, Multicasting, Resiliency VoD Local CO VoD server Metro distribution/core . , Local CO Title 50 Local CO Centralized VoD HE . VoD . B-TV , Broadcast TN . 100(@4.2Mbps) , 420Mbps . VTN IAN : Video (CoS) . Video session BW ftp (fair-share) session BW . Transport network Video BWprovisioning scheduling . [ TN, AN, MDU .] CO MDU Fiber, GbE, RPR Access Node: MDU-TP MDU uplink 1 Gbps . BTV(100CH@4.2Mbps) 420Mbps, VoD(50CH@4.2Mbps) 210Mbps, NVoD (5CH@4.2Mbps) 21Mbps 651Mbps. 1Gbps Uplink . Video Strict delay-priority CoS . Resiliency 2 GbE uplink port RPR . BW QoS Security IP Fast Channel switching (IP multicasting (IGMP)) BW QoS Security IP Fast Channel switching (IP multicasting (IGMP)) VCR-like VoD control Fast channel switching EPG/iTV One STB, two CH or one STB, one CH , , End-to-end visibility and control

Transport Network

Access Network

MDU: Ethernet Network MDU: DSL Network

CPE/STB

Management/

Reference Lucent: IP2000 Nortel Alcatel Invia

Assumption discussion
Market MDU Market size: 100,000 HH ( 200,000HH /) MDU density: 1,000 HH/MDU , , Services Broadcast TV: 100 CHs (@4.2Mbps), : 25,000 VoD: 50 titles at local CO. 1000?, 4 NVoD(SVoD): 5 CHs(HBO, SpiceTV. @4.2Mbps) Internet: 30,000 Phone Service V+I V+I + SVoD V+I + B-TV V+I + SVoD +B-TV VoD participants

VoD HE Cyber Apartment(MDU) Access Metro Distribution VoD HE

servers CPE
100BaseTX

Service Provider Expense

100 CHs ?/

Broadcast HE VoD HE Metro Core

Receivers/ Demods MPEG2 Encoders

PP/CP
IP Encaps. (Video to IP)

VoD/NVoD servers

TV middleware Server

GbE-R

live

Terrestrial Video TN

GbE-R
GbE
GbE

VoD HE
RPR (OC48) Ring GbE-R

GbE-R

VoD HE

POP Internet

ES

ES

L3

Cyber Apartment(MDU)

GbE-R CPE
100BaseTX

(1) Integrated Network: {Video Transport + Internet Access} Network MD: GbE/RPR(2.5G), MC: 10GbE/RPR(10G)/DWDM
GbE

ES

ES

L3

SP own fiber

(2) Separated Network: Video Transport Network, Internet Access Network VTN: MD: , MC: IAN: MD:, MC:

Lucent: Video over DSL Solution

Summary
Metro Optical Ethernet (EoDF, EoS, EoRPR, EoDWDM) Metro access Metro Core , Emerging Service
Enterprise: BoD, QoS, VPN Residential: Video over IP Enough Fiber Infra Office Building Residential Access Network (DSL, CM) Internet User Residential BB Internet access

Korea

SP Vendor .

VoD NVoD Broadcast TV PPV

Enterprise BB Internet access BW on Demand VPN Tiered Service

Broadband Infra Metro Ethernet ADSL/VDSL

Thank You
Jangwoo Son Netmanias.Com E-mail) son@netmanais.com PCS) 016-460-5747 URL) http://www.netmanias.com