7750 SR: YOUR

EDGE IN SERVICE
EVOLUTION
HOW TO DELIVER COMPELLING NEW
SERVICES BY OVERCOMING CHALLENGES
AT THE IP SERVICES EDGE
APPLICATION NOTE
TABLE OF CONTENTS
1 ABSTRACT / 1
2 SERVICE EVOLUTION DRIVERS & OPPORTUNITIES / 2
2.1 External innovation driving service evolution / 2
2.2 Residential service trends & opportunities / 2
2.3 Business service trends & opportunities / 3
2.4 Mobile service trends & opportunities / 3
3.1 Scale & performance / 4
3.2 Differentiation & service richness / 5
3.3 Operational complexity / 5
4 7750 SR: THE EDGE IN SERVICE EVOLUTION / 6
4.1 Higher performance / 6
4.2 More services / 6
4.3 Integrated intelligence / 7
4.4 Greater operational effciency / 7
5 7750 SR: IP EDGE EVOLUTION EXAMPLES / 9
5.1 Large Global Tier 1 Provider / 9
5.2 National Tier 1 Provider (EMEA) / 9
6 SUMMARY / 10
7750 SR: YOUR EDGE IN SERVICE EVOLUTION
ALCATEL-LUCENT APPLICATION NOTE
1
1 ABSTRACT
Driven by the latest innovations in internet-based services and multi-media enabled
TVs, PDAs and smartphones, consumers are once again fueling change in the network
services industry. Whether its mobile subscribers consuming more applications and
video content while on the road, residential customers demanding more personalized,
on-demand video services, or enterprises looking to fully leverage the effciencies of
cloud computing, service providers (SPs) are faced with both the challenge - and the
opportunity of evolving their services to meet the changing needs of their customers.
The opportunity is substantial. The market for public cloud-based services is expected
to reach $176.8 billion by 2015*. PayTV services have already reached $200 billion
annually and are experiencing healthy growth despite the recent economic downturn.
The extent to which SPs can transform these opportunities into new revenue streams will
often hinge on their ability to overcome the challenges at the IP edge of the networks
that stand in the way of service evolution. Maximum return mandates an IP edge with
the fexibility, scale and operational effciency to capitalize on new service opportunities
while keeping rising bandwidth costs under control.
Many SPs have embarked on their service evolution journey and are driving new revenue
in a proftable manner with the Alcatel-Lucent 7750 Service Router (SR) at the edge of
their IP network. The 7750 SR allows SPs to:
Diversify their network services portfolio with new or extended services
Deliver more bandwidth more effciently to meet growing demand
Distinguish their services from the competition
Drive operational effciency and OPEX reduction
Targeted to SP product marketing, network architecture and network operations execu-
tives, this document provides an overview of changing enterprise and consumer needs,
the new opportunities now open to SPs and the transformation challenges they face,
and how these challenges and opportunities are best addressed with an IP services edge
based on the 7750 SR.
*Source: Gartner, June 2011

7750 SR: YOUR EDGE IN SERVICE EVOLUTION
ALCATEL-LUCENT APPLICATION NOTE
2
2 SERVICE EVOLUTION DRIVERS &
OPPORTUNITIES
2.1 External innovation driving service evolution
When the frst network services were introduced decades ago, the innovation cycle was
driven by the service providers themselves they defned connectivity services, brought
them to market and added incremental enhancements along the way. In the past decade,
technology innovations outside the domain of the service provider - in internet-based
services and in personal computing devices have turned this model upside-down and
changed how subscribers view and consume connectivity services. To re-establish their
central role in the new network-based service value chain, SPs must evolve their services
to meet the changing needs of their customers as they embrace the best of what technol-
ogy innovation has to offer.
2.2 Residential service trends & opportunities
In the residential broadband services domain, the catalyst for service evolution is video,
which is set to permeate every aspect of a subscribers online experience. Driven by the
freedom and fexibility of video on demand (VoD) services delivered over-the-top (OTT),
the high quality viewing experience delivered by managed IPTV services, and an explo-
sion in consumer electronics devices (ie, tablets, internet-enabled TVs) that consume
content, subscribers are demanding a more fexible and personalized broadband experi-
ence, one in which they can consume any content on any device, anytime, anywhere.
While fat rate usage caps can be effective in minimizing the impact of surging OTT VoD
bandwidth on the network, SPs can thrive in the video-dominated era of high bandwidth
services by enriching their current lineup of voice, High-speed Internet (HSI) and linear
IPTV services with (see Figure 1):
VoD services with guaranteed QoS levels
Enhanced linear TV services with high video quality and fast channel change capability
HSI plans with application-aware metering capability to personalize the service
experience,
Application-aware zero rating and usage based billing to monetize OTT traffc and
ensure fair share use
Wi-Fi access that seamlessly extends the home connectivity experience out into the
community and beyond
Figure 1: Residential service opportunities
ENHANCED VIDEO SERVICES
Highest quality IPTV
Distributed content caching for
highest VoD quality and scale
NEW APPLICATION SERVICES
High performance gaming,
personal video conferencing,
many more
LOCATION FREEDOM (Wi-Fi)
Home experience at Wi-Fi
hot spot
Wholesale excess capacity
to mobile networks
METERING AND FAIR SHARE USE
Business intelligence gathering
Application-aware metering
Personalized plans
OTT MONETIZATION
OTT application zero rating
HTTP error redirection
Residential
broadband
network
SUBSCRIBERS
7750 SR: YOUR EDGE IN SERVICE EVOLUTION
ALCATEL-LUCENT APPLICATION NOTE
3
2.3 BUSINESS SERVICE TRENDS &
OPPORTUNITIES
In business services, the catalyst is cloud computing, storage and applications. Enterprise
demands for increased fexibility and operational effciency have spawned whole
new industries around areas including application hosting and software-as-a-service.
However, issues such as loss of visibility and control, and lingering concerns over the
security and performance of cloud-based applications are dampening enterprise adoption
of these services. At the same time, margins in traditional connectivity services such as
VPNs and business internet are shrinking as universal availability transforms them into
a commodity.
SPs can thrive in this new cloud-dominated era of business services by leveraging their
strengths in building highly reliable networks to become the go-to-choice for enterprises
headed to the cloud. They can evolve their business service portfolios to include (see
fgure 2):
Cloud Access VPNs and Business Internet services that restore application visibility
and control to enterprise IT managers
Network-based Distributed Denial of Service (DDoS) mitigation services that eliminate
potential threats before they can impact enterprise customers and the cloud data
centers they rely on
End to-end SLAs that guarantee performance for applications hosted in the SP data
center and delivered by the SP network
Rapid service provisioning for cloud VPN access
Figure 2: Business service opportunities

2.4 Mobile service trends & opportunities
In mobile, a new generation of smartphones and portable computing devices is rapidly
changing the previously predictable networks of mobile providers. As bandwidth utiliza-
tion and related signalization surges, wider spectral bands used in LTE are bringing
bandwidth effciencies, but they do not replace lost voice and SMS revenues, or provide
Enterprise
data center
Cloud
data center
End-to-end hosted
application SLAs
External threat
mitigation services
VPN and cloud
application monitoring
and control services
Enterprise
SOHO
Enterprise
branch
Internet
DDoS
Cloud optimized
business Internet
Cloud optimized
IP VPN
Cloud optimized
Ethernet VPN
Data center
7750 SR: YOUR EDGE IN SERVICE EVOLUTION
ALCATEL-LUCENT APPLICATION NOTE
4
a way to monetize the ever increasing fow of traffc. SPs can increase ARPU and service
proftability through (see fgure 3):
Personalized, application-aware service plans that allow subscribers to make the best
of available bandwidth while monetizing OTT traffc
Value-added video distribution capabilities such as adaptive, high-quality streaming
enabled by integrated service intelligence
Higher capacity mobile packet core that can accommodate more subscribers and
bandwidth more effciently
Wi-Fi access networks that move traffc off the radio network to provide a seamless
higher-bandwidth connectivity experience

Figure 3: Mobile service opportunities
3 SERVICE EVOLUTION CHALLENGES
Many of the challenges SPs must overcome to ensure successful service evolution are
centered at the point in the network where service policies are implemented at the IP
edge. Chief among these are scale and performance, enabling differentiation and service
richness, and reducing high operational complexity
and cost.
3.1 Scale & performance
The surging tide of bandwidth has surpassed the performance capabilities of legacy edge
routers. Centralized packet processing architectures are buckling under the load, and
technology limitations in commercial or off-the-shelf routing silicon are forcing provid-
ers to trade off raw capacity for feature processing. Surging bandwidth is also creating
bottlenecks at centralized IP edge routers, limiting service availability and scale.
In residential, video transport costs are escalating with the proliferation of per-subscriber
video on demand sessions. Each session must traverse the entire network to reach the
initiating subscriber, consuming bandwidth along the way, and creating congestion at
performance-limited IP edge routers. Centralized content injection and edge routers
designed for yesterdays internet speeds no longer make economic sense.
Business networks have similar issues as enterprise adoption of video communications
and cloud-based client/server applications are taxing PE routers and limiting the cycles
available for new services.
In mobile, the introduction of LTE and small cell radio infrastructure and Wi-Fi offoad
NEW REVENUES
Personalized service
packaging
Next-generation digital
media distribution
MONETIZATION
Application/user aware
metering and charging
Per event/session/
application charging
Wi-Fi AND CELLULAR
Secure and trusted
connectivity across Wi-Fi
and cellular with seamless
broadband experience
LTE AND SMALL CELL
Increased bandwidth
capacity and coverage
to satisfy subscribers
Internet and
other networks
Mobile service
packet core
Wi-Fi 4G/LTE
small cell
7750 SR: YOUR EDGE IN SERVICE EVOLUTION
ALCATEL-LUCENT APPLICATION NOTE
5
techniques are resulting in higher bandwidth utilization, and a much higher traffc
burden at the mobile packet core (MPC). Performance is also an issue: as more
internet-capable devices, from tables to smart-phones, tap into the mobile network, the
performance burden on the MPC which is responsible for processing their mobile IP
connections also increases.
3.2 Differentiation & service richness
The most effective way for SPs to achieve sustainable differentiation for their services
whether its enhancing VPNs to resolve cloud migration issues, or providing a higher
quality video experience is to add high touch packet processing capability in the data
path. Traditional edge routers often lack this capability outright, or they lack the perfor-
mance and scale to support large-scale or high bandwidth deployments. To compensate,
some SPs have deployed specialized appliances at the edge of their network and in CPE
locations. While this approach allows for some differentiation, it requires SPs to deploy
and maintain multiple platforms and hundreds of additional nodes and linkages. This
greatly increases operational complexity while reducing service scale and reliability.
Feature consistency across a diverse set of platforms is diffcult to achieve, limiting an
SPs ability to differentiate where it matters most in providing a consistent quality of
experience to customers that consume multiple services.
3.3 Operational complexity
Traditional IP edge routers were single-purpose devices targeted for specifc mobile,
residential or business services. This fragmented approach to product development has
resulted in a similarly fragmented IP edge infrastructure. It is not uncommon to have
separate edge routers for IPTV services, HSI services, Ethernet VPNs, IP VPNs and busi-
ness internet services - all confgured as overlays over the same aggregation and access
networks. Mobile networks are also commonly fragmented, with a separate mobile
packet cores to aggregate 2G, 3G, LTE and Wi-Fi access networks and to offer IP-based
services.
The operational impact of this siloed approach to service deployment is massive. SPs
must deal with the operational complexity of maintaining multiple service networks,
certifying and maintaining multiple router operating systems, and providing their custom-
ers with a consistent experience across all their disparate service offerings. Delivery of
new services and enhancements to existing services, is a slow, complex affair. Service
integration and blending such as providing IPTV content through an HSI service is
diffcult to achieve as, as is network capacity planning across services based on sub-
scriber requirements.
The rapid growth of internet-ready personal computing and M2M devices has trans-
formed IPv6 migration from a future consideration to a pressing reality for both business
and consumer networks. SPs must grapple with the operational complexity of how to
grow the network when there are no new public IPv4 addresses available, and how
to transition to IPv6 while maintaining IPv4 continuity for applications, networks and
services that may not be ready to make the change. IPv6 migration is also compounding
scale and performance issues by adding yet another processing hurdle for legacy edge
routers already straining under the load.
7750 SR: YOUR EDGE IN SERVICE EVOLUTION
ALCATEL-LUCENT APPLICATION NOTE
6
4 7750 SR: THE EDGE IN SERVICE EVOLUTION
Overcoming service evolution challenges requires a new generation of IP router at the
services edge, the Alcatel-Lucent 7750 Service Router (SR). The 7750 SR provides SPs with:
Higher performance to deliver more bandwidth, more effciently
More services supported concurrently on a single to enable portfolio diversifcation
Integrated network, service and application intelligence to distinguish services from
the competition
Greater operational effciency to drive OPEX reduction
4.1 Higher performance
Powered by the industrys fastest network silicon the FP3 400Gb/s network processor-
the 7750 SR delivers more bandwidth, to more subscribers, more effciently. The 7750 SR
enables high density 10GE/40GE/100GE networking, a path to 400Gb/s networking in the
future, and the ability to scale performance and services concurrently with no compromise.
Innovations in power consumption allow FP3-based routing platforms to consume 50%
less power per bit transported, enabling additional operational savings and service eff-
ciency. IPv6 and IPv4 can be run concurrently, at line rate, providing maximum fexibility
for IPv6 migration.
4.2 More services
Unlike single-purpose edge routers, the 7750 SR contains the industrys most comprehen-
sive set of IP-based services across the residential, business and mobile domains (see fgure
4). Services are based on the 7750 SRs feature-rich and highly robust software, the service
routing operating system (SR OS). SR OS allows SPs to diversify their network services
portfolio by layering new services on one common IP platform, eliminating the operational
complexity of overlay networks. New services can be introduced quickly to leverage new
opportunities and generate new revenue streams.

Figure 4: Service opportunities with the 7750 SR and SR OS.
Mobile Gateway
Mobile Backhaul Router
Wireless LAN Gateway (Wi-Fi)
IPsec Security Gateway
Broadband Network Gateway (BNG)
Wireless LAN Gateway (Wi-Fi)
Video Router/Content Caching
IPv6 Transition
Layer 2 Provider Edge (PE) Router/
Ethernet Services Edge
Layer 3 Provider Edge (PE) Router/
Multiservice Edge
7750 SR
RESIDENTIAL
E
N
T
E
R
P
R
I
S
E
M
O
B
IL
E
7750 SR: YOUR EDGE IN SERVICE EVOLUTION
ALCATEL-LUCENT APPLICATION NOTE
7
4.3 Integrated intelligence
Service providers looking for a future-proof approach to differentiate their services can
leverage the 7705 SRs multi-service integrated service adapter (MS-ISA) to introduce
high touch processing to the common edge platform (see fgure 5). MS-ISA application
and subscriber aware monitoring and control capabilities allow residential and mobile
providers to create personalized service plans that are optimized for individual consumer
needs. IPTV services can be revitalized to stand apart from the competition via fast chan-
nel change, or higher quality video delivery. Mobile video sessions can be intercepted to
support automatic transcoding via specialized appliances, or to provide upgraded quality
of service. For differentiated business services, MS-ISA allows enterprise customers to
monitor and control their cloud and enterprise applications, without the expense of a
large-scale appliance rollout. New revenue streams in secure network and cloud services
are enabled by adding DDoS protection capability to any service, at any point in the IP
network.
Figure 5: Service differentiation with the MS-ISA
4.4 Greater operational effciency
The ability to drive operational savings is built into all aspects of the 7750 SR network.
A common management platform for services, network elements and applications
allows SPs to reduce service provisioning times by up to 97% and virtually eliminates
provisioning errors during reconfguration. Integration of new services into IT and OSS/
BSS systems is greatly simplifed, accelerating time-to-market for new services. Integrated
service intelligence enables additional operational savings by allowing SPs to optimize
their networks through application-level trend analysis, or by extending IPv4 address
continuity through carrier-grade NAT translation. A recent study by Bell Labs identifed
multiple operational benefts obtainable via the convergence capabilities of 7750 SR,
including streamlined sparing, training, repairs, and OSS integration. Integration of
business and residential services on a common IP services edge resulted in 60% OPEX
savings (see fgure 6).
Industrys fastest channel change
Retransmit on error for high QoE
PerfectStream video conditioning
Video quality monitoring
Content caching/delivery*
VIDEO
Application-to-subscriber monitoring
and control
Metering and fair share usage
Service personalization and
consistency
Application-aware business services
APPLICATION ASSURANCE
Carrier grade NAT
Multiple tunneling and IPv6
migration capabilities
*Future capability
IPv6 MIGRATION
Distributed Denial of Service
(DDoS) attack mitigation
IP Sec
SECURITY SERVICES
7750 SR: YOUR EDGE IN SERVICE EVOLUTION
ALCATEL-LUCENT APPLICATION NOTE
8
Figure 6: OPEX savings via residential and business service convergence on the 7750 SR
(Source: Alcatel-Lucent)
The ability to distribute service intelligence - such as application monitoring, policy
enforcement, and caching right to the edge of the network provides the highest quality
of service for customers, and the greatest operational savings for carriers. In a distrib-
uted architecture, subscriber management, content caches and high touch processing
capabilities move to the edge of the network, closer to the customer. By distributing
service intelligence to the edge, SPs can provision more bandwidth and fewer subscribers
per GE port to accommodate the growth of video and other high bandwidth services.
Video on demand sessions are initiated closer to the subscriber and no longer traverse
the entire IP network (see fgure 7). This has the dual beneft of enabling long term scale
and lower cost per bit for video transport. Since VoD content delivered by the SP has a
much shorter distance to travel vs content from internet-based OTT vendors, SPs can also
offer signifcantly higher service quality and performance vs OTT offerings.
Figure 7: Long term scale & lower bandwidth costs with a distributed eBNG architecture and on-net CDN
New NMS/CLI intro/integration
Fault and performance management
NMS
Total operational expenses
OPEX SAVINGS
CUMULATIVE - 5 YEAR CONVERGED RESIDENTIAL, BUSINESS, MBH EDGE
Router SW upgrades
NMS/CLI recertication
Power
Training
Router installation and conguration
Space lease
Separate edge NWs
New router introduction
7750 SR fully converged edge
External
CDN or
transparent
cache
Internet
Video
servers
SUBSCRIBER IP SERVICES EDGE
Content partner
origin servers
Wi-Fi
access
Fixed
access
eBNG
Peer
caches
7750 SR: YOUR EDGE IN SERVICE EVOLUTION
ALCATEL-LUCENT APPLICATION NOTE
9
5 7750 SR: IP EDGE EVOLUTION EXAMPLES
5.1 Large Global Tier 1 Provider
A large global tier 1 provider selected the 7750 SR to provide the fexibility, scale and
operational effciency they required to remain at the cutting edge of service innovation as
they converged multiple networks into one (see fgure 8). The 7750 SR supports Ethernet
VPN, IP VPN and residential services on a common platform to maximize operational
savings and enable a consistent customer experience across services. Distribution of the
subscriber management and business VPN functions closer to their customers allows the
provider to increase operational savings while enabling even greater fexibility and scale.
Figure 8: Enabling service innovation fexibility via the convergence of multiple service networks into one.
5.2 National Tier 1 Provider (EMEA)
A national tier 1 provider selected the 7750 SR to drive the strategic transformation of
their network to support concurrent delivery of multiple IP-based services, including
new HD video services, to mobile and residential customers (see fgure 9). Key require-
ments included line rate IPV6 support to 100Gb/s, and high availability service delivery
platform that would allow them to offer always-on services. The ability to integrate
mobile backhaul of cell site routers de-risked the service transformation process as
mobile backhaul became just another IP service on a common IP service platform.
Figure 9: Concurrent delivery of new bandwidth-intensive service to mobile and residential customers
Retail
Residential
and business
Wholesale
7750 SR 7750 SR 7750 SR
Core
nodes
Metro
nodes
Tier 1
exchange nodes
5620 SAM
IP services
Competitors
IP services
Business
Residential
Access
Access
7750 SR
MSE
and BNG
Aggregation
Core
7750 SR
Cell site
router
Mobile switching
center
Video ofce
and data center
RNC
www.alcatel-lucent.com Alcatel, Lucent, Alcatel-Lucent and the Alcatel-Lucent logo are trademarks of
Alcatel-Lucent. All other trademarks are the property of their respective owners. The information presented
is subject to change without notice. Alcatel-Lucent assumes no responsibility for inaccuracies contained herein.
Copyright 2012 Alcatel-Lucent. All rights reserved. XXXXXXXXXXXXXX (February)
7750 SR
DIVERSIFY AND DISTINGUISH SERVICES WITHOUT ADDING A NEW OVERLAY NETWORK
DELIVER BANDWIDTH EFFICIENTLY AND DRIVE OPERATIONAL SAVINGS
RESIDENTIAL
E
N
T
E
R
P
R
I
S
E
M
O
B
IL
E
PERFORMANCE
SERVICES
INTELLIGENCE
EFFICIENCY
6 SUMMARY
Whether its video consumption from any device anywhere, or the operational fexibility
of cloud computing, subscribers want to beneft from the latest innovations in network
and computing technology. Satisfying their needs means making changes at the IP
services edge to reduce the operational complexity that slows service introduction and
increases OPEX, and to eliminate issues of scale and limited performance. The 7750 SR is
uniquely qualifed enable this transformation by providing (see fgure 10):
The industrys fastest network silicon the FP3 400Gb/s network processor to
deliver more performance and more bandwidth, to more subscribers, more effciently
The industrys most comprehensive set of IP-based services - across residential,
business and mobile domains - to diversify SP service portfolios
The integrated intelligence to distinguish services from the competition
Operational effciencies at every level including integrated service/element/
application management and a common service platform to drive OPEX reduction
Figure 10: The 7750 SR is uniquely qualifed to evolve residential, business and mobile services.