1 / 25

Metro Ethernet Webinar

Hot topics. Why is there growing customer demand for ME services?What are the key factors for reducing costs, both CAPEX and OPEX, for service providers?Comparative cost benefits across Europe, North America and AsiaWhen will the cost benefits be realised? When is the best time to migrate to Met

laurent
Download Presentation

Metro Ethernet Webinar

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

    1. Metro Ethernet Webinar Welcome to ‘The Economics of Metro Ethernet’ When: Thursday 10 March 2004, starting at 4pm GMT / 11am EST / 8am PST To participate in this Webinar, call: +44 (0) 1452 542 300 (international) 0845 245 3471 (UK only). The conference code is: MEF-3

    2. Hot topics Why is there growing customer demand for ME services? What are the key factors for reducing costs, both CAPEX and OPEX, for service providers? Comparative cost benefits across Europe, North America and Asia When will the cost benefits be realised? When is the best time to migrate to Metro Ethernet from legacy services? How BT, NTT, Bell South, SBC, France Telecom and other top service providers are already reaping the benefits of Metro Ethernet. Point-to-point or multipoint links – where are the biggest savings? The future – can the business case for Metro Ethernet Services just keep improving?

    3. Panellists Brian Van Steen – Principal, PointEast Research Marc Rapoport – Senior Architect, Completel Europe David Ginsburg - Vice President of Marketing and Product Management, Riverstone Networks Peter Green – Broadband Optical Solutions Planning, Nortel Networks Gary Southwell – VP Marketing, Internet Photonics and the Metro Ethernet Forum Moderator: Manek Dubash, Contributing Editor

    4. Agenda

    5. Agenda

    6. The Capital and Operational Advantages of Metro Ethernet

    7. The Economics Of Ethernet The Metro Ethernet Forum’s mission is to drive the adoption of Ethernet services on a world-wide basis To do this: MEF undertook studies to attempt to quantify the real-life Capital and Operational Savings of Ethernet Real-world analysis, studying the application new technologies versus traditional in actual provider networks MEF’s unique perspective 63 Members comprised of Industry leading service providers providing business perspective and leading vendors providing technical solution perspective.

    8. The Studies Three MEF economic studies since 2002: Metro Ethernet Services for Enterprises (CapEx & OpEx) The Optical Ethernet MAN (SP CapEx & OpEx studies) Studies Were undertaken by the MEF in conjunction with: Network Strategy Partners PointEast Research

    9. Service Pricing Models

    10. Service Cost Savings

    11. Resulting New Service Cost Models

    12. Agenda

    13. The OpEx Advantages of Ethernet-based Services

    14. PointEast Research PointEast was founded in September 2000 Dedicated to providing technology and market intelligence to venture capitalists, startups and OEMs in the telecom market Scott Clavenna, San Francisco 12 years of market research in optical and telecom networks; founder of Pioneer Consulting 1997; founder of PointEast Research 2000 Brian Van Steen, Montreal Over 6 years of technology, market and financial analyses at PointEast Research, RHK and HSBC Securities

    15. 15 OpEx Study Summary A comparison of the network operations steps to deliver an Ethernet services versus traditional data services From time spent on each step to financial cost E-Line and E-LAN were compared with private line point-to-point and Frame Relay / ATM, respectively The study was conducted with the participation of 36 service providers in Europe and North America The results were quantified for Initial Provisioning, Bandwidth Changes, Service Additions, Site Additions and NOC Functions These results were used to populated a 3-year scenario analysis for a medium-sized metro market Ethernet-based services can reduce OpEx by an average of 23% US$1.8 million in OpEx savings over a 3-year period

    16. Key Points Ethernet-based services deliver OpEx savings for the various steps required to deliver a service to a customer OpEx savings of 23% translates into significant bottom line improvement OpEx represents the majority of service provider budgets Ethernet is still a new technology for service providers ? they are still on a learning curve The potential is that Ethernet-based OpEx savings will increase as the technology and services mature Ethernet still has to address various OA&M issues, where additional costs can occur Standards bodies are addressing these issues, and pending resolutions will resolve them

    17. OpEx Study Scope Spent over three months meeting with service providers: incumbents, competitors and wholesalers Spoke to a broad cross-section of service providers in Europe and North America Qualitative information added from discussions with additional service providers

    18. Service Provider Engagement Multiple meetings with these service providers Marketing: To understanding the service provider’s Ethernet business plan, the existing sales environment and the pricing market Technology Planning: Challenges experienced with building and maintaining an Ethernet-based network compared with legacy networks Network Operations: Data and cost gathering for initial circuit provisioning, moves / adds / changes, and ongoing circuit and network monitoring Development of a workflow model for Ethernet and traditional services delivery.

    19. OpEx Models Created

    20. A Metro Area Scenario Analysis The data from the models were fed into a metro service model: Government data used to create a model of a medium-sized metro area. 3-year study of the deployment of Ethernet-based services and traditional data services A metro area of ~ 1– 2 million people, ~ 50,000 – 80,000 business establishment, and ~ 45,000 buildings The model tracked the OpEx costs associated with the delivery of both types of services

    21. The Results

    22. Summary Ethernet-based services can have an immediate and continuous impact on a service provider’s financial results The CapEx and OpEx benefits of introducing Ethernet-based services are now understood for: Established service providers Competitive service providers Service providers that need to understand the OpEx impact on ROI can now model based on this study First definitive work published in the telecom industry The MEF will continue to help quantify and qualify the benefits of Ethernet as a service and transport technology

    23. Agenda

    24. Panellists Brian Van Steen – Principal, PointEast Research Marc Rapoport – Senior Architect, Completel Europe David Ginsburg - Vice President of Marketing and Product Management , Riverstone Networks Peter Green – Broadband Optical Solutions Planning, Nortel Networks Gary Southwell – VP Marketing, Internet Photonics and the Metro Ethernet Forum Moderator: Manek Dubash, Contributing Editor

    25. Agenda

    26. References Metro Ethernet Services – A Technical Overview http://www.metroethernetforum.org/metro-ethernet-services.pdf Metro Ethernet Networks – A Technical Overview http://www.metroethernetforum.org/meftechoverviewwhitepaper071102.pdf Metro Ethernet Case Studies http://www.metroethernetforum.org/ME_CaseStudies.htm Metro Ethernet Forum Frequently Asked Questions http://www.metroethernetforum.org/MEF_FAQ061702_Final.pdf Yankee Group’s Optical Ethernet report http://www.yankeegroup.com/public/home/research_showcase.jsp?ID=10480 An archive of this Webinar can be found at http://www.telecomtv.com/webinar/ethernet/

More Related