Improving Your Bottom Line with Cost-effective Access Solutions Presented by: Dario Zipris VP Sales...

The RegionalConference on Access

2007

Improving Your Bottom Line with Cost-effective Access Solutions

Presented by:

Dario Zipris

VP Sales

RAD Data Communications

Customers’ Event Crete, May 2007

Improving Your Bottom Line CE2007 Slide 2

Global Telecommunications Connections, 2004 – 2007

0

1000

2000

3000

4000

5000

Users (Millions)

2004 2005 2006 2007

Mobile PSTN Broadband VoIP

What to look at?Mobile and Ethernet/Broadband markets!

Source: Point Topic, 2007


Competitive Environment in the Mobile Operators

• All world regions have suffered declining ARPU in the first three quarters of 2006

• Mobile operators are looking for alternatives to compensate for the effect of declining revenues on their bottom line

• Mobile voice service is a saturated market where price wars are common

• New Mobile Virtual Network Operators (MVNOs) are competing for other operators’ customers

Source: Strategy Anlytics, Nov. 2006

0

5

10

15

20

25

30

35

40

45

50

N. AmericaAverage

CALAAverage

Asia-Pacific

Average

C/E EuropeAverage

W. EuropeAverage

MEAAverage

AR

PU

Q1-Q3 05

Q1-Q3 06

6%

9% 10%15%

16%

7%


More Revenues with Data Services?

• Generate new revenues by offering new mobile data services

• Data services are taking off in the market BUT:

• Revenue per data bit transported is lower than the revenue per voice bit

• Is the market ready to pay for the data services?

• The amount of traffic to transport in order to compensate for declining voice revenues is going to grow significantly

• The data services might saturate your voice network the core of your profit! And for very low income

Source: Strategy Anlytics, Nov. 2006

0

0,5

1

1,5

2

2,5

3

3,5

4

Mob

ile D

ata

AR

PU

Q1 05 Q2 05 Q3 05 Q4 05 Q1 06 Q2 06 Q3 06


Ethernet in EMEA Already an Interesting Revenue Stream

• Early rollouts dominated by Ethernet over fiber and ATM

• Eth-over-MPLS and Eth-over-SDH are the biggest opportunities

0.000

0.500

1.000

1.500

2.000

2.500

3.000

3.500

4.000

2004 2005 2006 2007 2008 2009 2010

Copper Access Ethernet over Fiber Ethernet over SDH

Ethernet over MPLS Ethernet over WDM

Rev

enu

es (

$ M

illio

n)


Market Players: Service Providers

Your Challenges• Low margins on traditional services

• Increased competition

Your Winning Strategy

• Protect your customer Base• Add new services on existing platforms •New revenue stream with new services

Your Possible Solutions• Ethernet services over any network

• Expand your metro as a nationwide service• Legacy & Voice traffic over any Platform


Market Players: Mobile Operators

Your Challenges• ARPU Decreasing

• Questionable ROI of data services


• Reduce your backhauling expenses with traffic aggregation

• 3G deployment: new revenue stream• Smooth migration to PSN

Your Possible Solutions• Deploy today a future proof Backhaul platform

• Voice Compression and Traffic optimization• Effective HSDPA Traffic handling


Market Players: Utilities and Transportation

Your Challenges• Old communications platforms

for today’s needs• Pressure to provide data and

entertainment services


• Modernization of data infrastructure• New services: Internet, information

boards, ticketing etc.• Internal corporate service

Your Possible Solutions• Leverage your existing infrastructures

• Multi-service Platforms: low and high bandwidth

service integration


Coping with your Challenges

Better utilization of your existing infrastructureOffering more attractive services

Improving your and your customer’s bottom line!


Market Players: Utilities and Transportation

Your Challenges• Old communications platforms

for today’s needs• Pressure to provide data and

entertainment services


• Modernization of data infrastructure• New services: Internet, information

boards, ticketing etc.• Internal corporate service

• Utelco

Your Possible Solutions• Leverage your existing infrastructures

• Multi-service Platforms: low and high bandwidth

service integration


Power Substations Connectivity over Legacy

• Multi service applications connectivity over SDH

STM-4

STM-1

SCADASCADASCADA

SCADA

Control Center

SCADA

Copper

ADMADM

ADM

ADMADM

ADM

ADM

E1 E1

120 X E&M

n x E1 n x E1

OP-XLE1

n x E1n x E1F.O

n x E1


Highways and Railways over NGN

• Legacy traffic control system and voice over MPLS rings

UK Highway Rumanian Railways

Korean Subways

UK Highway Rumanian Railways

Korean Subways

MP

ETH

GBE GBE GBE

ETH

Fast Ethernet Resilient Ring Over MPLS

Regional Control Center

MP

ETH

Data Voice

ETH

MP

ETH

Data Voice

ETH

Modems

MP

ETHETH

GBE

Israel Railways


China Light & Power

Shell Nigeria

GASPromRussia

Surgutneftegas Russia

Russia

ShanghaiSubway

CPTM-Brazil

Rome Station

Ofotbanen Norway

Corporate Networks Successes

EDF France

Israel Railways


Service Providers

Your Challenges• Low margins on traditional services

• Increased competition


• Protect your customer Base• Offer new services on existing platforms

• New services: new revenue stream

Your Possible Solutions• Ethernet services over any network

• Expand your metro as a nationwide service• Voice over any Platform


Packet SwitchedNetwork

Eth/IP/MPLS

Metro Ethernet Access

EdgeDevice

Customer Premises

ETXUTPGE/FE

FOGE/FE

Customer PremisesEdge Device

GE/FE

FOGE/FE

ETX CPE

Gmux-2000

Ethernet

E1PBX

LANIPmux-11/14

Customer Premises

FE

GE

STM-1E1/E3

PSTN

CPE

No 1 in deployedTDMoIP lines

No 1 in deployedTDMoIP lines

• Smart CPE enlarges your service portfolio, additional revenues• Pseudowire technologies for legacy service emulation• Corporate voice savings

Short List

21 Century

Short List

21 Century


Customer Premises

CPEFE

Ethernet over Existing SDH Infrastructure


Eth/IP/MPLS

SDH/SONETNetwork ADM

ADM10/100BaseT

Customer Premises

10/100BaseT

NGADM

FECPE

FE

CPEGE/FECustomer Premises

Customer Premises

GE

NG ADM

EgateGE/FE

STM-1/E1

E1/T1RIC

RIC

n x E1/T1

IP-DSLAM

Customer Premises

n x E1

MP-4100MP-4100

ETXFiber

ETX

ETX


Metro Expansion over SDHEvolutionary Multi-service Solution

Gmux-2000

GE

STM-1E1/E3

GE/FE

STM-1/E1

Egate

Your Benefits

• From City to Nationwide coverage

• Wide Service portfolio

• Intelligent CPE: Revenue increased by SLA differentiation

• Better utilization of existing resources

Advantages of RAD’s Solution

• Money saving SDH concentrator

• Single supplier of Voice and Ethernet Services

TDMoIP Voice to the PSTN Network


Eth/IP/MPLS

EdgeDevice

GE/FEFO

GE/FE

Edge Device

GE/FE

FOGE/FE

ETX CPE

Ethernet

E1PBX

LANFE

CPE ETX

IPmux

SDH/SonetNetwork

ADM ADM

ADM

ADM

ADM

10/100BaseT

n x E1/T1

RIC

STM-1

FCD-155LAN

n x E1/T1

RIC

10/100BaseT

IP-DSLAM

E3/T3

Edge Device

Edge Device


10/100BT

n x EoCUBonding

GbE

LA10BT

BranchDSLAM

EoCU

LADSLAM

Branch

GbE

Adding Ethernet Access Solution

• Extending the reach of the provider’s network over a variety of access technologies

• Consistent Ethernet service across different access technologies

Headquarters

ETX1000Sx GbE

ETX100Fx/GbE

GbE

Metro Ethernet

10BT

Branch

Service ProviderPacket Switched

Network

RIC

RIC

SDH

RIC

GbE

STM-1/OC-3

10BT

100BT

EoPDH

n x EoPDHBonding

Branch

Branch

EoPDH

Egate

Branch

RIC10BT


Ethernet over SDH Successes

Alternative/City Carriers:

Nepal Telecom

Incumbent Carriers:


IPVgateCPE

PBX

Customer Premises

Back-office Provider’s Site

LAN

Tel Lines (POTS, ISDN, E1)

End-to-End VoIP Solutionsin one week!!

• Integrated VoIP Access System

• Time to Service = 1 Week !

• Low initial investment

• Unique Quality of Service

RADview-SC/IPVManagement & Monitoring database

Smart CPESmart CPE

IPVgateP Gateway

IPVswitchClass5 SoftSwitch

ADSL

IP Phone or SIP client

PSTN or Cellular

IPNetwork

IPVsuite


Service Provider’s Business Model – Simple and Clear

Potential CustomersAverage Customer Profile

Year1 Year2 Year3 Year4 Employees 810,000 100 300 300 100 Minutes/Day/Employee 25

lines (in avr.) 2.5Monthly Operation Cost:Installation cost € 80 per customer

Tech support salary € 2,000 Person per 500 Subscribers

Manager salary € 3,000 Manager per 8 Technicians

Overhead Expenses 30%Additional expenses € 10,000 (e.g. network cost, COO)

Service Monthly Tariffs: Fee Margin ServiceAvr. Call rates: Usage%

Capital Investment: Minute rate (Average) € 0.03 60%VoIP GW € 10,000 4x E1

LEAD TelcoSuite (cluster) € 60,000 H/W+SW Monthly fees:LEAD Telco License/Subscriber € 60 per customer Basic line € 9 100%IPCenter (CPE) € 400 Average DDI, MSN (/10 numbers) € 10 20%Additional Network Equipment € 7,000 CLID € 2 90%

Call Divert € 3 40%VoiceMail (per line) € 4 30%

Service Revenues per Customer per Month Encrypted calls € 20 5%Service Revenue € 177 VPN (data) € 90 15%Service cost € 53Gross Margin € 124 Installation Fee € 20

TotalInstallations Rate per Month

-€ 300

-€ 250

-€ 200

-€ 150

-€ 100

-€ 50

€ 0

€ 50

€ 100

0 2 4 6 8 10 12 14

PBT - year1

Cash Balance - year1

Invest-As-You-Charge Economics


Mobile Operators

Your Challenges• ARPU Decreasing

• Questionable ROI of data services


• Reduce your backhauling expenses with traffic aggregation

• 3G deployment: new revenue stream• Smooth migration to PSN

Your Possible Solutions• A single backhauling platform: Legacy and PSN

• Voice Compression and Traffic optimization• Effective HSDPA Traffic Handling


2G BTS 3G Node-B

E1 IMA

DSLBonding n x DSL

Traditional Backhaul Networks

STM-1ATM

BSC/RNC Site

E1s TDM

Ch. STM-1

3G Node-B

LA-110

LA-110SHDSL

ADSL

VoiceE1 UNI

HSDPA

2G -BTSn x E1TDM

n x E1 (IMA)STM-1

3GNode-B

n x E1 ATMIMA

ACE

MultiserviceAggregation

n x E1 IMASTM-1


ACE

Over 3 years with RAD 2.5/3G DSL Backhauling

Over 3 years with RAD 2.5/3G DSL Backhauling

Backhauling services offered by

FT Global based on RAD



Radio Sites

TDM/ATM

2G BTS3G Node-B

ATMDSLAM

DSLLA-110

SDH / ATM AccessNetwork


2G BTS3G Node-B

3G Node-B

2G -BTS

Radio Sites

n x E1TDM

NGN Backhaul Networks

• Allows additional Opex cost reduction (10:1 ratio)• Complete portfolio – including DSL-based PW devices • Smooth migration to PSN

3GNode-B

n x E1 ATMIMA

E1 IMA

DSLBonding n X DSL

STM-1ATM

BSC/RNC Site

E1s TDM

Ch. STM-1

LA-110

LA-110SHDSL

ADSL

VoiceE1 UNI

HSDPA

ACE



ACE





TDM/ATM

2G BTS3G Node-B

IPDSLAM

PSNAccessNetwork

DSLLA-110

Emulated TDM or ATM Service

FE/GbE

FE/GbE


Effective Handling of HSDPA Traffic

3G RNC

ATMTransportNetwork

HSDPA STM-1 FE ADSL2+

3G NodeB

GE

IP DSLAM

STM-1/ATM

HSDPA n x E1 ATM FE ADSL2+

3000 NodeB’s for HSDPA Over ADSL

3000 NodeB’s for HSDPA Over ADSL

Up to 4 x E1 ATM ADSL2+

HSDPA Traffic

3G NodeB

RFQ Stage:

RAD is Awarded HSDPA Hybrid Global Tender

RAD is Awarded HSDPA Hybrid Global Tender

PSN

ACE-3402/3600

LA-130

ACE-3100

ACE-3200

3G NodeB


Slashing Your Opex

GSM BaseStations BSC

Vmux Vmux

E1s

GSM A-bis Optimization

A-bisOptimizatio

nTDM/IPTransportNetwork

16-to-1 E1 Compression

E1s

E1s

STM-1

Gmux-2000

STM-1

Gmux-2000

MSC

MSC

MSC/BSC

Vmux-2100 E1s

MSC Site

MSC Site

Remote MSC Site

Voice Trunking

Voice Trunking

Voice Trunking

E1s

TDMNetwork

ROI:2 to 8 Months


Utilities & TransportationYour Possible Solutions

Ideas to Improve Your Bottom Line – Day 1

Migration to All-IP NetworksMigration to All-IP Networks

Personal Meetings & Product ShowcasePersonal Meetings & Product Showcase

• Leverage your existing infrastructures• Multi-service Platforms: low and high

bandwidth service integration

Mobile & Service ProvidersYour Possible Solutions

Mobile & Service ProvidersYour Possible Solutions

• Ethernet services over any network• Ethernet services over any network

• A single backhauling platform: Legacy and PSN•Voice Compression and Traffic optimization

• Effective HSDPA traffic handling

• A single backhauling platform: Legacy and PSN•Voice Compression and Traffic optimization

• Effective HSDPA traffic handling


Ideas to Improve Your Bottom Line – Day 2

Service Providers

Your Possible Solutions

Service Providers

Your Possible Solutions

SummarySummary

• Leverage your SDH platform to provide new services• Expand your Metro/Ethernet as a nationwide service

• Legacy & Voice over any Platform


Improving your Competitiveness

• Better utilization of your existing infrastructure

• Offering more attractive services

• Evolutionary NG implementation

Improving your bottom line!

The RegionalConference on Access

2007

thank you

www.rad.com

Enjoy the conference!

Dario Zipris

VP Sales

Improving Your Bottom Line with Cost-effective Access Solutions Presented by: Dario Zipris VP Sales...

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