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Providing Integrated Services
Over Copper & Cable
February, 2001
It’s About Time.
Overview
• Today’s Topic: Providing an
Integrated Services Package
Over Copper and Cable
• What’s Cool About
Integration
• Opportunity for Integrated
Services
• Implementing Services
• Strategic Considerations
What’s Cool About Integration
• Integration future proofs the SP’s
business
• Realizes the service providers’
dream: One connection; multiple
revenue streams
• Provides ARPU protection
• Keeps SP on favorable price and
margin curves
• Aids Customer Retention
Integrated Services Opportunity
• Voice
• Security:
– Firewall/Virus Protection
– Filtering
– VPN’s
• Messaging
– Translation
– Integrated
• Video
– Mail
– Conferencing
Opportunity Con’t
• Collaborative Work
– Virtual Meeting
– Shared Whiteboard
• Web Design/Web Hosting
• Caching/Peering
• ASP Services
• ECommerce
Opportunity
• Rough total for all these is in
Multiple Billions of Dollars
• Service integration assures
continued participation as
more and more of everyday
life migrates to networks.
Implementing Services
Voice CPE
Standard ADSL
ADSL with “derived” voice
 
Data:
Internet, etc.
ADSL Line
Data:
Internet, etc.
POTS
ADSL Line
POTS
–Up to 16 simultaneous voice channels on a single copper pair
–Soft provisioning of additional voice channels - no truck roll
–Integrated voice and data solution
–Focused on SME and high-end residential market
Voice “Bundles”
• SOHO and small businesses
– Package high speed data and multiple voice
lines
– PBX/Key systems attached to/integrated into
modem
– Small Centrex groups
• Residential
– Package of high speed data and multiple
voice lines
– Home working environment (PC, Phone, Fax)
– 2nd and 3rd line (pairgain)
• E.g. Install for 2nd line POTS and be data
ready
Voice Gateways
Service providers
End users
Access providers
PSTN
Service
management
Service
management
ASAM
GW
...
ADSL-NT
Isp’s
...
ATM or FR pipes
...
Corporates
Mini-RAM
IP-tunnels
Data backbone BAS
GW
ATM backbone
ATM edge
ASAM
...
ADSL-NT
Security:
DSL Access: PPPoX with L2TP tunneling
CoSine IPSX
CVR
DSLAM
DSL ATU-R
Shasta BSN
IPSec Tunnel
L2TP Tunnel
ATM
Core
ATM
Access
SP VR
LAC
DSL ATU-R
STM-1
LAC
PPPoX


LNS
L2TP Tunnels
IPSec Tunnels
Tunnels PPPoE and PPPoA sessions through to the correct CVR
One L2TP tunnel for each enterprise, with the ability for multiple PPP
sessions per tunnel
Leased Line Access: Direct
CoSine IPSX
CVR
Channelized T1
or fractional
service
CPE
Local
Access
IPSec Tunnel
ATM
Core
Metro
Loops
SP VR
CPE
Local
Access
Channelized DS3
PPP

IPSec Tunnels
Timeslot groups for each customer is mapped from the Channelized DS3
through to their respective C-VR.
IP Services with CoSine solution
• IPSec VPNs
• Managed Firewalls
• VPDN for secure dial
• Extranets
• Frame Relay Integration

Irrespective of method used, once the customer traffic
reaches their CVR, value add IP services such as VPNs,
Firewalls, NAT, Anti Virus, etc can be provisioned exactly the
same way for each subscriber
Putting It All Together
Trends: Business Users (1)
Decentralizing
Outsourcing
Intra-/Extranet
Supply Chain Integration
Revenues Managed Data
Services (UD$ billions)
'99
Access to
advanced services
for SME/SOHO
'00
'01 '02
ASP
8
7
6
5
4
3
2
1
0
'03 '04
VPN
Web Hosting
Roaming
Virtual
Office
Source: Asia/Pacific Telecom Network Services Market 1999-2004, IDC
Trends: Business Users (2)
Voice-Data
Convergence
More than 60% of APAC
companies are integrating
or will integrate data and
voice.
A large share of these companies will
use Voice over Packet to communicate
across the supply chain (suppliers,
customers and channels/resellers).
Source:WAN Manager Survey - Jul 2000, IDC
Business Services
End-user applications
Enterprise
Large Business
increasingly need more
network services
which can be provided
by network
operators
Switch/Router
VOICE VPN
PRI, Centrex, VoIP
Access
Node
DATA VPN
Internet, Intranet,
Security, Privacy, Management
Outsourced Firewall, Routing
E-Commerce, Co-working
Small Office
Home Office
Access
Node
WW Local connect (roaming)
Single Authentication
VPN, Security, Privacy
AAA, Billing
Policy, QOS, SLA
VoIP, Fax/IP, Transport
Access
Node
Mobile
Telecommuter
Residential Services
Content Application Provider End-user applications
Server farm
increasingly need more network services
which can be provided by network operators
Voice
POTS, ISDN, VoIP
Switch/Router
Dial up Internet
Always on Internet
Videoconference
Private
Residential
Web hosting,
E-mail, E-commerce
S&F Fax/IP,
Unified messaging
Audio/Video Streaming
Interactive Digital TV
Access
VPN, Security, Privacy
Node
AAA, Billing
PPP, tunneling
IP pool management
Remote Access Services
RT Fax/IP, VoIP, Transport
Strategic Considerations
• When ?
– Now
– Plan for Migration
• What is proper sequence ?
– Start with most likely to be broadly
adopted
– Build critical mass
– Differentiate to vertical need
– Take a prudent chance
Strategic Considerations
• Functionality at Edge or
Core?
– What works when your customers’ need
it
– What will continue to allow you to
differentiate
– What suits your organization’s skill set
Summary
• Integration can help future
proof an SP’s business
• Integration can begin today
• Take prudent risks to
differentiate toward your key
segments