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Telekom Austria Technology Strategy Roadmap Future Universal Network (FUN). - confidential -. Helmut Leopold Mai 2nd, 2001. Goals for Telekom Austria Capabilities. Integrated Management Capabilities. Technological Capabilities. Design and build a platform to support new services
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Telekom Austria Technology Strategy RoadmapFuture Universal Network (FUN) - confidential - Helmut Leopold Mai 2nd, 2001
Goals for Telekom Austria Capabilities Integrated Management Capabilities Technological Capabilities • Design and build a platform to support new services • Flexibility to exploit value shifts • Improve cost efficiency to retain targeted margins even under price pressure • shift investments from PSTN to future save multiservice technology Process Capabilities • Improve ability to deliver services demanded by the market • Improve ability to support services and increase customer satisfaction, while decreasing churn Increasing competition and a value shift are driving Telekom Austria to make a strategic shift to become a multiservice provider Total Austrian Telecom Market 1)– 2000–2004 – Austrian Market Size – ATS Bn. – TA Market Share Key Trends 67 100 ValueAdded Services (Multimedia) • Value shift • Growth in value added data products and services • Fixed voice loses dominance as a share of total revenue • Increased competition potentially decreases TA‘s revenue growth Mobile FixedVoice Value-Added services including IP, data and multimedia products and services Mobile voice and data products and services Fixed voice products and services including voice value added services (1) Estimated figures based on European market data, aligned with Austrian market figures, TA market share excludes mobile revenues Source: IDC, OVUM, Goldman Sachs, www.aspnews.com, BA&H analysis
Introduction – Project Overview In more detail, the F.U.N. project ought to accomplish strategic and tactical goals in the technology and process area Future Universal Network Project Objectives Process Technology • Realise full revenue potential through better support of current products • Reduce cost to serve for current product base NetworkStatus (Tactical) • Realise greater revenue potential by enabling delivery of value added and multimedia services • Reduce capital & operational cost by consolidating network layers • Invest in flexible technology • Develop ability to deliver and manage services to meet future market demands Value Shift (Strategic)
The overall product and service portfolio reflects an increase in next generation products and services Information Sources for Products and Services Products and Services by Product Segment(1) -Beginning 2003- IP + VAS (Multimedia) 55 Current Product and Service Portfolio 140 Current Products 58 Transport 34 Voice + VAS (IN) 51 Research into New Products and Services Future Products(2) 82 (1) Products and services offered project based and mobile services are not included (2) Includes products and services categorized as under development, in preparation and in the future
Five key issues for the Future Universal Network (FUN) • Capacity in the access network (Access) • Transport capacity in the core network (Backbone) • Intelligent traffic control (Edge) • Voice Data Integration and migration • New Multimedia-Services (CPE and SW-Platforms)
Why ADSL ? (2)Market demand • Residential customer • Internet Access as the “initial application” ! • Always on ! • Flat rate tariff ! • Business customer • Cost effective alternative for traditional leased lines • uncontended connectivity (VPN) • higher bandwidth
ADSL locations 1999 1. Quartal 2000 4. Quartal 2000 2. Quartal 2000 Lilienfeld Wr.Neustadt Mattersburg Schwarzsach Wörgl Innsbruck Igls Inzing Zirl Feldbach ADSL Infrastructure Rollout in Austria Gmünd Waidhofen/Th 100.000 Lines installed Horn Zwettl Zwettl Zwettl Mistelbach Hollabrunn Krems Technical problems: 2% > 3km LEX Radius: 2% not in the ADSL Rollout: 3% Market coverage: > 75% Korneuburg Krems Stockerau Pregarten Gänserndorf Gallneukirchen Tulln Stockerau Nord Tulln Kleinmünchen Kleinmünchen Kleinmünchen Linz Linz Linz Leonfelden Leonfelden Leonfelden Ybbs Fadingerstraße Fadingerstraße Fadingerstraße Melk Klosterneuburg Linz Linz Linz Grünstraße Grünstraße Grünstraße Ybbs Pressbaum St. Pölten St. Pölten Langenzersdorf Haydnstraße Haydnstraße Haydnstraße Pressbaum Neulengbach St. Pölten Wien Wien Böheimkirchen Purkersdorf Amstetten West Puchenau Traun Fischamend Haid Enns Süd Ried Traun Brunn/Geb Ost Wr.Neudorf Breitenfurth St.Valentin St.Valentin Laxenburg Laakirchen Mödling Wilhelmsburg Bruck/L Wels Scheibbs Baden Steyr- Traiskirchen Neudorf Miesenbach Wegscheid Grünmark Miesenbach Bad Vöslau Waidhofen/Y Vöcklabruck Steyr- Oberwaltersdorf Neusiedl/S Tabor Pottendorf Timelkam Leobersdorf Lamprechtshausen Elixhausen Leobersdorf Henndorf Timelkam Ebenfurth Ebenfurth Gutenstein Felixdorf Piesting Eugendorf Seewalchen Alpenstraße Alpenstraße Gutenstein Piesting Eisenstadt Fuggerstraße Fuggerstraße Itzling Itzling Salzburg Moosstrasse Moosstrasse Paris-Lodron Paris-Lodron Ebensee Ebensee Lehen Lehen Großgmain St.Gilgen Residenz Grödig Bregenz Mitte01 Hörbranz Wals Wals Kufstein Neunkirchen Bregenz Mitte02 Oberpullendorf Grödig Mürzzugschlag Schendligen01 Fußach Kirchbichl Ellmau Schendligen02 Hallein Reutte Liezen Bruck a.d. Mur St. Johann Egg Höchst Leoben Lustenau Söll Kundl Dornbirn Bischofshofen Altach Mäder Leoben-Mitte Brixlegg Kitzbühel Hohenems Ehrwald Koblach Weiler Jenbach Kirchberg Götzis Götzis Hall in Tirol Leoben-West St. Johann Hötting Pinkafeld Pinkafeld Telfs Röthis Röthis Wild Schönau Pöllau im Pongau Wattens Klaus Leoben-Ost Zwischenwasser Fügen Sulz Sulz Westendorf Knittelfeld Fügen Weiz Rankweil Alpbach Kematen Imst Imst Zell am See Schwarzach Semriach Übersaxen Feldkirch Kolsass Schwaz Rum Murau Oberwart Judenburg Hartberg Bludenz Thüringen Tamsweg Kaltenbach St.Anton Landeck Frastanz Nüziders Mittersill Pradl Zell Gratkorn Bad Hofgastein Bad Hofgastein Innsbruck Mitte Nenzing Seefeld Stegersbach Axams Lorüns St.Anton Gleisdorf Völs Fulpmes Ischgl Ischgl Fürstenfeld Satteins Bärnbach Stallehr Bürs Matrei Serfaus Serfaus Köflach Mayrhofen Bad Gastein Bürser Berg Güssing Silbertal Graz Graz Graz Studenzen Neustift Vandans Stainach Tschagguns Schruns Voitsberg Jennersdorf Dobl St.Veit Matrei Hausmannstätten Feldkirchen Lienz Kalsdorf Feistritz Kalsdorf Feistritz Deutschlandsberg Völkermarkt Klagenfurt Nord Bad Radkersburg Leibnitz Hermagor Klagenfurt West Villach Klagenfurt Villach Villach-Mitte Velden Velden Klagenfurt SüdOst Villach-West Villach-Ost Villach-Süd Ferlach
US households DSL Market EvolutionService Adoption Rate DSL services are expected to continue currently observed super fast market adoption. ADSL is forecasted to be responsible for most of the growth.
Telekom Austria achieved a great success in ADSL penetration so far .... Number of ADSL subscribers – pro 1000 PSTN lines – 4. QUARTAL 2000 Quelle: European Competitive Telecommunications Association, Januar 2001 (Quellendaten 3.Q 2000)
TA´s optical High performance backbopne - DWDM Network • Western Ring • St.Johann – Innsbruck – Dornbirn – Feldkirch – Innsbruck - Bischofshofen • Eastern Ring (H1) • Salzburg – Linz – St.Pölten – Wien Schiller • Wien Arsenal – Eisenstadt – Graz • Graz - Klagenfurt - St Johann/B´Hofen - Salzburg • separated parallel Ring (for 1:1 protection !) • slightly different structure for ORF WDM network (1 WL) • max. capacity per WDM relation: 320 Gbit/s max. capacity, per fibre link (1st Ring.) 640 Gbit/s max network capacity (2nd ring - protection !) 32 WL Linz 32 WL Wien St.Pölten 32 WL Eisenstdt Wr. Neustadt Salzburg 32 WL 32 WL 32 WL 32 WL St Johann 32 WL 31 WL Innsbruck 32 WL Feldkirch 32 WL 32 WL 32 WL B‘Hof Graz Klagenfurt
limited CAPEX and Opex Innovation-investment capacity investments Optimisation investments New Framework: Investment-Mix and “Shareholder Value” Investment Mix Gewinn Gewinn Budget Maintain ongoing business Enable new business Market growth
SDH We propose to deploy an IP-MPLS Network over three evolution stages Stage 12001 Stage 22002 Stage 32005 Today • Upgrade SDH & ATM core • Build out DWDM • Construct umbrella NMS • Migrate voice transport to ATM in the core • Deploy MPLS in core IP network • Migrate TDM dial up traffic • Migrate voice transport to IP • Reduce ATM in the core • Integrate intelligent OSS Main Actions Core Edge Access Core Edge Access Core Edge Access Core Edge Access TDM TDM TDM TDM Multiservice (IP/ATM-MPLS IP-MPLS Multiservice (IP/ATM-MPLS IP IP IP TDM ATM ATM ATM ATM ATM ATM ATM SDH SDH SDH SDH OTH** DWDM DWDM * * ADSL xDSL DWDM xDSL xDSL Copper Copper Fibre Fibre Copper Fibre Copper Fibre OSS * = Metro-DWDM ** = OTH - Optical Transport Hierarchy
Three next steps for the Future Universal Network (FUN) • Intelligent traffic control • cost efficient network operations and extension • lower OPEX • Voice Data Integration and migration • Investment protection ! • Service Convergence • secure networks
The main focus of interest has changed... 1990 1997 1999 2001 Enable Market Next Generation Access Technology Mass roll-out Critical Success Factors - DMT(ANSI T1.413) - ATM (QoS, MUX) - G.DMT, G.Lite, G.HS - Service delivery models (DSLF) - Network architectures - PPPoX - BRAS - 1st carrier class eqt - 1st network roll-outs (US) - Carrier class: - Manageability - Ease of provisioning - Investment protection - Fulfillment (Time to market) - Convergence - VoDSL - Business access - Streaming Video - ... Today’s challenges
Capture CPE legacy non-intrusively PSTN Service Interworking End-to-end service provisiong ....Key enablers - critical success factor Integrated e2e view: Agility (MACs), LL emulation, upselling, SLA Virtual routing VPNs MSP VPN ... IP/ATM edge L2TP, MPLS,... ... ADSL BRAS RSP DSLAM ASP & industry vertical
Streamlining operations...... cost efficient provisioning processes ? Tomorrow Yesterday Today Provisioning Technology - BRAS user driven - Edge manually - Access manually - BRAS user driven - Edge flow-through - Access flow-through Service-levelspecification - Back end skill required - OPEX/Line Engineer Mainstream Integration in Business Process None: operational overlay Conceptual integration Full blend into OSS - CRM - Workflow - workforce scheduling - line ordering / testing - proactive helpdesk / SLA mgt
New service offerings ... High end service „Video streaming“
Multimedia Fieldtrial Network Architecture I-plus Encoder Receiver nCube1 SGI SGI Encoder Receiver nCube2 WM Encoder Receiver HP Real Ser. Encoder Receiver Encoder Encoder Encoder Encoder Encoder Encoder WM Standort Klagenfurt IP Core Netz STM16 CS 7206 Core Router Core Router Core Router Core Router Core Router Core Router Real Server Server-LAN ADSL-LAN Switch Switch Switch Switch Switch Switch Switch Switch Switch ATM Proxy Proxy Proxy BRAS BRAS BRAS BRAS BRAS BRAS BRAS Proxy Proxy Proxy Cache Flow Real Server CacheFlow M-RAS M-RAS M-RAS ADSL Modem OES PC TV TV TV OES OES DSLAM DSLAM DSLAM DSLAM DSLAM DSLAM DSLAM DSLAM DSLAM DSLAM DSLAM DSLAM Graz Server-LAN Linz Standort Wien Standort Feldkirch CS 7206 CS 7206 MM-LAN Server-LAN ADSL-LAN MM-LAN Server-LAN ADSL-LAN ATM ATM Set Top Box
Financial Evaluation – Multimedia The video service offering enhances the stickiness of the ADSL offer – break-even is expected by the end of 2003 Product Cost and Revenues for the Video Service Offering conceptual Comments • The video platform offers 5 services • Video on-demand • Cinema on-demand • Audio on-demand • Near video on-demand • Live video streaming • In the network, bandwidth upgrades and the installation of video servers are required • Revenues were estimated based on competing offers • Subscribers were estimated as share of ADSL subscribers (maximum share 20%) Revenue, Cost in MATS Subscriber ‘000s Revenue Cost Subscriber Note: Cost equals allocated OpEx and Depreciation – See appendix for details.
OES Switch Remote Switch Remote Switch ... ... Kleine Unternehmen Große Unternehmen Privatkunden „All IP“ Multiservicenetz der TA (2005) Internet UMTS WWW GSM “All IP” Multiservicenetz (IP/ATM/MPLS) Backbone Optical Transmission and Switching (OTH) PSTN Access Leased Lines xDSL Integrated access
....the main focus for the next step .... .... technology may make something possible, the applications could make it happen, but, usability and affordability will make it a success !