Download An introduction to NTT ’ s NGN and new services in Japan

International Telecommunication Union
An
’s NGN
NGN
Anintroduction
introduction to
to NTT
NTT’s
and
in Japan
Japan
and new
new services
services in
Naotaka MORITA
Vice Chairman of SG13, ITU-T
Senior Research Engineer, Supervisor
NTT Service Integration Labs.
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks"
Dar es Salaam, 3-5 October 2006
Outline
1. The current status and future direction of
Japan’s telecommunications market
2. The worldwide telecommunications market
and standardization activities
3. NTT’s plans for the deployment of its NGN
4. Future visions for the NGN
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks"
Dar es Salaam, 3-5 October 2006
2
Japan today in 2005 (as of September 2005)
ITEMS
NUMBER NOTE
Population
127.8 M 11/2005, 20% is older than 64.
Householders
50.4 M 03/2005
Fixed lines
59.6 M 03/2005
ISDN
8.0 M 10 M at peak in 2001
Mobile
91.8 M 03/2006, 79.8 M have internet access,
70% of total population
3G
PHS
W-CDMA
26.5 M DoCoMo & Vodafone
cdma2000
21.8 M au
4.7 M 03/2006, 6.7 M at peak in 1997
Broadband
DSL
Optical
VoIP
48.3 M 70% growth last year
24.2 M 06/2006, 40% of householders
14.5 M 06/2006, Saturated !!
6.3 M 06/2006, 0.85 M increase in Q2 of
2006, 84% coverage in 2004
8.3 M 0AB type has started.
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks"
Dar es Salaam, 3-5 October 2006
3
Measures taken to prolong the lifetime of NTT’s PSTN
facilities
••NTT’s
NTT’sPSTN
PSTNconsists
consistsof
ofseveral
severalthousand
thousandswitches.
switches.
••Although
Althoughaathen-state-of-art
then-state-of-artswitching
switchingsystem
system(NS8000)
(NS8000)was
wasdeveloped
developedaround
around10
10years
yearsago,
ago,
the
rapid
progress
in
technology
since
then
has
resulted
in
the
discontinuation
of
production
the rapid progress in technology since then has resulted in the discontinuation of production
of
ofsome
somecomponents
componentsused
usedin
inthe
thesystem.
system.Currently,
Currently,we
weare
aretrying
tryingto
toprolong
prolongthe
thelifetime
lifetimeof
ofthe
the
switches
by
re-establishing
sources
for
such
components.
switches by re-establishing sources for such components.
POI
Transit
switch
Transit
switch
Other carriers
POI
NW between prefectures
Several
hundreds
Transit
switch
NTT West
NW inside a prefecture
Several
thousands
Local
switch
Local
switch
NTT East
Transit
switch
0.35µm
0.5µm
3.3V PS
5V PS
0.6µm
0.8µm
1.0µm
1.2µm
90
nt
in
ue
d
Several
tens
Other carriers
Di
sc
o
NTT Communications
Integration degree
Migration to more highly integrated LSI that
operates with lower voltage power supply
1.8, 2.5V PS
0.25µm
95
00
Year
05
NW inside a prefecture
Local
switch
Local
switch
NS8000
(developed around 10 years ago)
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks"
Dar es Salaam, 3-5 October 2006
4
Maturing of IP telephony technology in Japan
yIP
yIPtelephony
telephonyis
isspreading
spreadingfrom
frombusiness
businessusers
users(IP-PBX).
(IP-PBX).Low
Lowrates
rates(or
(orfree
free
between
betweenspecific
specificpoints)
points) offered
offeredby
byISPs
ISPshave
haveincreased
increasedthe
thenumber
numberof
ofIP
IPphone
phone
users
usersin
inJapan
Japanto
tomore
morethan
than10
10million.
million.
yNTT
yNTTalready
alreadyprovides
providesan
anIP
IPphone
phoneservice
service“Hikari
“HikariPhone”
Phone”using
usingthe
theordinary
ordinary
telephone
telephonenumbering
numberingplan.
plan.
OCN.Phone
OCN
2
Free
Affiliated ISP’s IP
network
Free
8.4 yen/3 min
*1
4
Non-affiliated ISP’s
IP phone
(13ISPs)
PSTN phone
8.4 yen/3 min
*1
5
6
Million
14
(178ISPs)
*1
3
Increase of subscribers to IP phone service
Affiliated ISP’s
IP phone
11.3yen/3 min
Mobile phone network
PSTN phone
Mobile phone
Number of subscribers
1
12
11.46
10
8
8.305
6
4
5.276
2
0
March 2004
March 2005
March 2006
Int’l phone network
7
Discount rate
Int’l phone
*1: not changed by distance
*Source: NTT Communications, Inc.: http://www.ocn.ne.jp/english/personal/option/voip/
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks"
Dar es Salaam, 3-5 October 2006
5
PSTN
• Time is ripe for an IP network to replace PSTN.
• Migration to the IP network will reduce both capital and
operational expenditure.
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks"
Dar es Salaam, 3-5 October 2006
6
Paradigm shift of Japan’s telecommunications market
•The
•Thenumber
numberof
of mobile
mobilephone
phonesubscribers
subscribershas
hasfar
far exceeded
exceededthe
thenumber
numberof
of
subscribers
subscribersto
tofixed-line
fixed-linetelephony.
telephony.
•The
•Thenumber
numberof
of Internet
Internet users
userscontinues
continuesto
to increase.
increase.
Internet
(Fixed line + mobile phone)
Subscribers [million]
120
●
Internet users:
106.24 million
100
●
Mobile phone
Mobile phone users:
91.48 million
80
●
60
40
POTS + ISDN
Fixed-line-phone users:
58.79 million
Broadband
(Optical, ADSL, etc.)
●
20
●
3/94
3/95
3/96
3/97
3/98
3/99
3/00 3/01
3/02
3/03
3/04 3/05
Broadband users:
19.49 million
IP phone users:
8.3 million
Sources: Ministry of Internal Affairs and Communications, Consortium for Promotion of Mobile Computing,
InfoCom Research Inc., and others.
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks"
Dar es Salaam, 3-5 October 2006
7
Shift of NTT Group’s main revenue source to broadband
services
•The
•Therevenue
revenuefrom
frombroadband
broadbandbusiness
businesshas
hasbeen
beenpicking
pickingup.
up.
•It
•It is
isnecessary
necessaryto
togrow
growbroadband
broadbandbusiness
businessinto
intocarriers’
carriers’ main
mainrevenue
revenuesource.
source.
Japan’s broadband market
Billion US$
40
40
Consolidated revenue of NTT Group
(Billion US$)
70
30
9
7
34
34
32
32
33
12
12
13
16
18
20
40
40
41
38
36
10
0
:Consumer
:Business
15
19
2005 2006 2007 Year
(Source: EC Research Corp.)
11
8
8
40
49
21
16
12
12
80
30
24
10
90
50
30
20
100
60
31
46
45
Revenue from
broadband market
Mobile
Internet and data communication
Fixed-line analog telephone (POTS)
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks"
Dar es Salaam, 3-5 October 2006
8
Increase in ARPU of broadband services
•There
•Thereis
isaashift
shiftfrom
fromlow-price
low-priceIP
IPtelephony,
telephony,exploiting
exploitingIP
IPtechnology,
technology,to
tothe
the
provision
provisionof
ofvalue-added
value-addedservices,
services,such
suchas
asvideo
videodelivery
deliveryand
andvideophone,
videophone,
exploiting
the
availability
of
broadband
access.
exploiting the availability of broadband access.
•The
•Theprovision
provisionof
of value-added
value-added services
services is
is increasing
increasingARPU.
ARPU.
Normalized ARPU
4
3
Added ARPU
2
Basic ARPU
1
0
Fixed line
telephone service
IP phone *1
IP phone +
supplementary
services
IP phone +
supplementary
services (future)
*1: Broadband access charge (including ISP charge)
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks"
Dar es Salaam, 3-5 October 2006
9
Revenue source of telecom carriers
Carriers need to shift their main revenue source from
the telephony service to broadband services.
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks"
Dar es Salaam, 3-5 October 2006
10
Promotion of optical access by u-Japan Strategy
The
TheJapanese
Japanesegovernment’s
government’s “u-Japan”
“u-Japan” Plan
Plan proposes
proposes the
the full
full development
development of
of
broadband
broadbandinfrastructure
infrastructureby
byinstalling
installingoptical
opticalfiber
fibernetworks
networksnationwide.
nationwide.
1. 100% broadband network
The projected status of a 100% broadband network, through which
broadband services are made available to all communities, is as follows:
(1) Overall, a variety of wireline and wireless technologies will be
seamlessly linked.
(2) In areas where cost-effective investment is difficult, broadband
infrastructure will be built taking both investment efficiency and the needs
of communities into account.
(3) Of these varieties of broadband service, super-high-speed broadband
access, mostly based on FTTH, will cover 90% of households nationwide.
Source: Proposed status of broadband networks in 2010
Proposed on Aug. 11, 2006
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks"
Dar es Salaam, 3-5 October 2006
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Dramatic increase in the number of FTTH subscribers in Japan
Subscribers [millions]
Optical
Opticalaccess
accessis
isbeing
beingpromoted
promotedso
soaggressively
aggressivelyon
onthe
thebasis
basisof
of the
theu-Japan
u-JapanPlan
Plan
that
the
yearly
increase
in
the
number
of
FTTH
subscribers
has
already
exceeded
that the yearly increase in the number of FTTH subscribers has already exceeded
that
thatof
ofADSL
ADSLsubscribers.
subscribers.The
Thenumber
numberof
ofADSL
ADSLsubscribers
subscriberswill
willsoon
sooncease
ceaseto
to
grow
growand
andgradually
graduallybegin
beginto
tofall.
fall.
20
Official data* forecast
15
ADSL
10
5
CATV
FTTH
0
3/2002
3/2003
3/2004
3/2005
3/2006
3/2007
3/2008
*Source: Ministry of Internal Affairs and Communications
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks"
Dar es Salaam, 3-5 October 2006
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National policy of Japan
The spreading of optical access is a national policy. There
are positive signs that optical access will indeed become
widespread.
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks"
Dar es Salaam, 3-5 October 2006
13
Rapid reduction in the charge for broadband access in Japan
•Competition
•Competitionhas
hasintensified
intensified into
intoaaprice
pricewar,
war,bringing
bringingdown
downthe
thecharges
chargesfor
forADSL
ADSL
and
andeven
evenFTTH
FTTHdramatically.
dramatically.
•This
has
resulted
•This has resultedin
in aasignificant
significantreduction
reductionin
intelecom
telecomtraffic
trafficrevenue.
revenue.
Change in monthly charge for broadband access (examples)
Yen
USD
13000 □
Basic type
□
9000
B-flet’s
90
70
7000
□
New Family Type
5000
△
□
1.5M
△
3000
□
△
Condo Type
2002
2003
50
30
□
△ 1.5M Type
Flet’s-ADSL
2001
Hyper Family Type
□
4100 yen
□
2500 yen
2004
2005
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks"
Dar es Salaam, 3-5 October 2006
14
Creation of new business
•NTT
•NTTwill
willnot
notonly
onlyincrease
increasetraffic
trafficrevenue
revenuebut
butalso
alsoseek
seekto
togenerate
generatenon-traffic
non-traffic
revenue.
revenue.
•NTT
•NTTalready
alreadyattempts
attemptsto
tocreate
createnew
new businesses
businessesin
incollaboration
collaborationwith
withaavariety
varietyof
of
players
outside
the
telecom
industry.
players outside the telecom industry.
Examples of FMC in service
“OCN .Phone”
.Phone” service series using FOMA N900iL
ASP
ASP
groupware
groupware
Internet
Highly secure download of electronic value using mobile terminal
Linkage by groupware
VoIP infrastructure
Cordless IP phone
using wireless LAN
Mobile connection
OCN
Use of OCN
content
Examples of ee-commerce in services
Electronic money service using mobile terminals
NTT DoCoMo
(FOMA)
Mobile
e-commerce
system center
PDA
Contactless
smart card
Internet
Download
e-value
E-money
PC-FOMA videophone,
videoconference
Secure access to
enterprise network
$
$
CAFIS
E-ticket
content
Mobile packet
access point
Linkage with business
applications
Use of electronic value using contactless smart card
Branch
Head Office
Enterprise
system
Away
from office
Use
e-money
as SF
email
Business applications
Groupware
..
.
Automatic gate
at subway
station
Buy drinks
using
e-money
Vending
machine
Pass
through
admission
gate using
e-ticket
Event hall
Concert hall
Data
FOMA® FOMA®
N900iL M1000
PC
FOMA® FOMA®
N900iL M1000
PC
FOMA® FOMA®
N900iL M1000
SF: Stored Fare
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks"
Dar es Salaam, 3-5 October 2006
15
Status of competition in Japan
Competition has intensified into a price war, making
it necessary to create new markets that will generate
revenue.
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks"
Dar es Salaam, 3-5 October 2006
16
NTT’s actions to deal with the competition
ItIt is
isurgent
urgentfor
forNTT
NTTto
toincrease
increaseprofit
profitby
byincreasing
increasingrevenue
revenuein
inaddition
additionto
to reducing
reducing
capital
capitaland
andoperational
operationalexpenditure.
expenditure.
z Promote broadband & ubiquitous
services like FMC and triple play
> Revenue shift from telephony
Revenue from
telephony
Revenue from
Broadband
and
ubiquitous
services
Cost
z Establish service delivery platform
for new seamless businesses
> Expand telecom market
z Migrate telephone network to IP
> Reduce capital and
operational expenditure
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks"
Dar es Salaam, 3-5 October 2006
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1. The current status and future direction of
Japan’s telecommunications market
2. The worldwide telecommunications market
and standardization activities
3. NTT’s plans for the deployment of its NGN
4. Future visions for the NGN
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks"
Dar es Salaam, 3-5 October 2006
18
Roles of carriers and vendors and their collaboration
Technologies
Technologiesare
arebeing
beingstudied,
studied,with
withcarriers
carrierspresenting
presentingrequirements
requirementsand
andvendors
vendors
proposing
proposingsolutions.
solutions.Standards
Standardsorganizations
organizationsprovide
providethe
thefora
forafor
forsuch
suchdiscussions.
discussions.
Discuss
Discuss Network
Network
Architecture
Architecture with
with carriers
carriers
and
and propose
propose solutions
solutions to
to
meet
meet the
the requirements.
requirements.
Present
Present requirements
requirements for
for
network
network components
components by
by
defining
defining Network
Network
Architecture
Architecture
Requirements
Carriers
Solutions
Vendors
Protocol
Architecture
SNI
Testing of interoperability
ITU-T, ETSI/TISPAN, ATIS, IETF, 3GPP, OMA, MSF, etc.
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks"
Dar es Salaam, 3-5 October 2006
19
Future direction sought by all carriers
The
Theexternal
externalenvironment
environmentof
of carriers
carriersworldwide
worldwidehas
haschanged
changedfrom
fromone
onewhere
wherethe
the
telephone
telephonenetwork
networkwas
wasthe
themain
mainnational
nationalinfrastructure.
infrastructure.All
Allcarriers
carriersare
arestriving
strivingto
to
face
facethis
thischallenge
challengeby
byrestructuring
restructuring and
and transforming
transforming themselves
themselves into
into carriers
carriers fit
fit
for
forthe
thenew
newage.
age.
Be versatile as a service providing company
Technical
innovation
Changes in
lifestyle
Provide FMC and triple play services:
to meet customer’s demand,
extending mobile and Internet features.
FMC: Fixed-Mobile Convergence
Carriers
Restructuring
Collaborate with other business areas:
e-commerce, banking, physical
distribution, home appliances, etc.
Changes in telecom policy
National
infrastructure
based on POTS
Competition
Reduce capital and operational expenditure:
by leveraging IP-technology to achieve
a competitive price
Save cost as a facility operating company
Telecom carriers should meet the requirements of the new age by building the NGN
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks"
Dar es Salaam, 3-5 October 2006
20
1. The current status and future direction of
Japan’s telecommunications market
2. The worldwide telecommunications market
and standardization activities
3. NTT’s plans for the deployment of its NGN
4. Future visions for the NGN
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks"
Dar es Salaam, 3-5 October 2006
21
Approach to NGN
Build
Build NGN
NGN that
that is
is of
of high
high quality,
quality, flexible
flexible and
and secure
secure
Smooth migration from
existing fixed-line to IP
telephony, and from copper to
optical access
Develop and spread
broadband and ubiquitous
services that allow fixedmobile convergence (FMC)
Open network that
allows collaboration
with other carriers and
xSPs
Expand business
opportunities by exploiting
broadband and ubiquitous
services
xSP:
Provide new
business
opportunities
Strengthen competitive edge and financial base,
and contribute to achievement of u-Japan
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks"
Dar es Salaam, 3-5 October 2006
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Major targets of NTT’s NGN by 2010
•Migrate
•Migrate30
30million
millioncustomers
customersto
tooptical
opticalfiber
fiberaccess
accessand
andnext-generation
next-generationnetwork
network
services
services
•Increase
•Increaseannual
annualsales
salesof
ofsolutions
solutionsand
andnon-traffic
non-trafficbusinesses
businessesby
byUS$
US$55billion
billion
•Maintain
•Maintainthe
thesame
samelevel
levelof
ofequipment
equipmentinvestment
investmentfor
forfixed-line
fixed-linecommunications
communications
operations
operations(cumulative
(cumulativetotal,
total,2006-2010:
2006-2010:US$
US$50
50billion)
billion)
•Reduce
•Reduceannual
annualcosts
costsfor
forPSTN
PSTNoperation
operationby
byUS$
US$88billion.
billion.
Non-traffic businesses
Solutions
Present
2010
Costs for the fixed-line
communications business
Reduce annual costs
by US$ 8 billion
by 2010
Billion US$
Investment in equipment
Sales increase
Increase annual sales
by US$ 5 billion
by 2010
Equipment investment for fixed
communications operations
9
9.4
8
About equal to the present level
Optical fiber access/
Next-generation network
Cumulative total:
US$ 50 billion
Existing fixed-line
telephone network
2002
2003
2004
2010
Costs for fixed-line
communications business
Sales of solutions and nontraffic businesses using the
next-generation network
Present
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks"
Dar es Salaam, 3-5 October 2006
2010
23
Basic concept of NTT’s NGN
Community,
e-commerce
ASPs and various
service players
Broadcast,
content providers
Lifestyle support,
home appliance
manufacture
SNI
IP-based network enabling
provision of seamless fixed
and mobile services
Home
network
SDP
IMS
Safe, secure, and convenient
network equipped with features
of both the existing fixed-line
telephone and IP networks
Disclose
Service Node
Interface (SNI)
to enable
various service
players to
provide a wide
array of
applications on
the NGN
NGN
Office,
hotspot, etc.
SDP: Service Delivery Platform
IMS: IP Multimedia Subsystem
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks"
Dar es Salaam, 3-5 October 2006
24
Roadmap to building NTT’s NGN
Fiscal year
Steps in
introducing
the NGN
2006
2007
2008–
STEP 1
Provide optical access to 30M
users (End of fiscal 2010)
STEP 2
Field trials
STEP 3
Core network
Construct
transit network
Construct
access networks
-deploy core nodes
-deploy optical wavelength
transmission equipment
Seamless integration
with mobile network
deploy edge nodes
Deploy service control functions
Service
control
functions
IMS deployment
(conforming to ITU standards)
Service
development
Trial services
<For limited
regions and users>
Full-scale development
of next-generation
services
•Broadband Internet access
•IP telephony
•Multicast transmission for video distribution
•Bi-directional video (data) communication
•Ethernet services, etc.
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks"
Dar es Salaam, 3-5 October 2006
25
Overview of Field Trials of NTT’s NGN
•Trial period: One year from Dec. 2006
•Areas: Tokyo and its surroundings and Osaka
Various services through tie-ups with IThome appliance manufacturers and ASPs
Open connectivity functions
IP multicast
function
NGN
Security
functions
End-to-end
quality control
Base station
IP telephony
FMC
Video
distribution
Internet
access
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks"
Dar es Salaam, 3-5 October 2006
26
1. The current status and future direction of
Japan’s telecommunications market
2. The worldwide telecommunications market
and standardization activities
3. NTT’s plans for the deployment of its NGN
4. Future visions for the NGN
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks"
Dar es Salaam, 3-5 October 2006
27
New activities for the NGN
Upgrade the fixed-line telephone network to an IP telephone
network by applying the latest broadband IP technology
- Provide broadband and IP telephony services at attractive prices
- Reduce capital and operational expenditure
Deploy new broadband services
- Provide seamless services, such as triple play and FMC
services
- Create non-traffic services
Create new markets by collaborating with various service
players on the network
- Disclose Service Node Interfaces
- Provide the Service Delivery Platform, to promote collaboration.
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks"
Dar es Salaam, 3-5 October 2006
28
Conclusion
As one of the first carriers in the world
to implement an NGN,
NTT will be happy to share with other
countries our experiences and
expertise of NGN trials and deployment.
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks"
Dar es Salaam, 3-5 October 2006
29