Cisco and the Service Provider IP Next-Generation Networks (IP NGN) Journey

1. Cisco and the Service Provider IP Next-Generation Networks (IP NGN) Journey EE Day 2008 Dr. Hosein Badran Senior Consulting Engineer, MEA, Cisco WiMAX Ambassador hbadran@cisco.com

2. Agenda Service Provider Drivers IP NGN Overview Application Convergence Service Convergence Network Convergence Cisco IP NGN Leadership

3. Hyper-Competition Increasing Overlap of players increasing, not number of customers Income Statements “Unbalanced” Traditional revenue streams flat or down due to technology substitution, but not operating expenses Broadband Promise Under-Realized Growth in demand for bandwidth, not yielding growth in revenue Customer Expectations Soaring Want to pay less, not get less State of the IndustryEconomic Drivers Prevailing—For Some, Survival at Stake

4. To Address These and Other ChallengesService Providers are Driving Towards… Services Differentiation Loyalty Revenue Efficiencies OPEX CAPEX Profits Control Service Network Business IP Intelligence Flexibility Adaptability

5. Small/Medium Business SP Wholesale Consumer Enterprise VPNs Content Transport Mobility Internet Voice and Video Cisco Service Provider Vision Connecting Customers with Services, Services with Networks,and Networks with Each Other IP Next-Generation Network

6. Characteristics of an Ideal NetworkFusing the Best of Today’s Networks and More Video Delivery of Cable/Television Content Richness of the Internet Mobility of the Cellular Network IP Next-Generation Network Ubiquity/Reliability of the PSTN Flexibility of Ethernet Bandwidth of an Optical Network Security of a Private Network

7. IP NGN JourneyRequires Multiple Layers of Convergence Integration of New Innovative IP D/V/V Services over Broadband forIncreased Revenue Application Convergence Service Continuity across Access forCustomer Loyalty and Stickiness Common Subscriber Management ServiceConvergence Content Mobile, WLAN DSL, Cable, FTTH Mobile Eliminate Layers in the Network forIncreased OpEx/ CapEx Efficiencies FR / ATM Network Convergence IP Next-Generation Network PSTN Optical Broadband Services High-Speed Internet

8. Recreation Residential Business For End Customers: Converting Transport toExperiences Operational Layer For Service Providers: Converting Costs intoRevenue Services Traffic Control Personalization Value Add Means To Bill Highways Intelligent Networking Highway to Value-Add, Personalized TollwayIP NGN Architecture Analogy Application Layer Service Layer Network Layer

9. Operational Layer Intelligent Networking Cisco IP NGN ArchitectureAchieving a Whole Greater Than the Sum of the Parts Presence-Based Telephony IP Contact Center Tele- Presence Mobile Apps Collaboration Web Services Application Layer Open Framework for Enabling “Any Play” Delivery(Any service, to any device, to any location) Identity Policy Billing Self Service Cisco Service Exchange Framework Service Layer Mobility Customer Element Access/ Aggregation Intelligent Edge Multiservice Core Network Layer Transport

10. Operational Layer Parlay/BEEP/JAIN Resource Manager Intelligent Networking Cisco IP NGN Architecture: Functional BlocksIntelligent Networking Unifies the Layers for Greater Service Opportunities Presence Hosting Centrex Content Business Services IM Application Layer Conferencing Video Web Services Identity and Mobility Management Service Policy and Resource Management Session and Media Management Cisco Service Exchange Framework Service Layer Routing Security L2/L3 VPN Service Aware Network Layer Multicast Performance Interworking Resilience Availability QoS

11. Operational Layer Intelligent Networking Application Convergence Presence-Based Telephony IP Contact Center Tele- Presence Web Services Mobile Apps Collaboration Application Layer Open Framework for Enabling “Any Play” Delivery(Any service, to any device, to any location) Identity Policy Billing Self Service Cisco Service Exchange Framework Service Layer Mobility Customer Element Access/ Aggregation Intelligent Edge Multiservice Core Network Layer Transport

12. Custom Ring Tones / MP3 Player High-Speed Internet /VPN Text / Instant Messaging VoIP Push-to-Talk / Intercom Video Conferencing Digital TV / VOD PDA / Email Data Voice Video New Service Provider Offer:“Many Services to Many Screens” At Work, At Home, On The Move

13. Residential Broadband Access ~$30/Mo Gaming~$7/Mo Wireless Security ~$30/Mo Home Net~$10/Mo Local and Long Distance Voice ~$40/Mo Teleworker/ Home Business ~$70/Mo Digital Music ~$10/Mo Video and xVoD~$50/Mo NetPVR ~$10/Mo Enabled by a Cisco IP NGN Creating New ServicesResidential Broadband Portfolio Integrated Networks, Content, and Entertainment Services

14. Creating New IP-Based Services Business Portfolio Moving Up the Value Chain Managed Firewall ~$100/Mo/Site Metro Ethernet~$75/Mo/Site Content Distribution~$50/Mo/Site Managed IP Telephony ~$40/Mo/Site Remote Access ~$75/Mo/Site Managed Router Service~$250/Mo/Site Managed LAN Service~$13/Mo/Site IP/MPLS/VPN ~$150/Mo/Site Enabled by a Cisco IP NGN

15. Resilient Integrated Adaptive • Multilayer Security • High Availability • Scalable • Virtualized Services • Application Aware • Modular Approach • Service Control • Self-Provisioning • Self-Optimizing • Self-Defending Stringent Requirements on Infrastructure Intelligent Networking Enables Business Success

16. Operational Layer Intelligent Networking Service Convergence Presence-Based Telephony IP Contact Center Tele- Presence Web Services Mobile Apps Collaboration Application Layer Open Framework for Enabling “Any Play” Delivery(Any service, to any device, to any location) Identity Policy Billing Self Service Cisco Service Exchange Framework Service Layer Mobility Customer Element Access/ Aggregation Intelligent Edge Multiservice Core Network Layer Transport

17. At Work Enterprise Home At Home Hotel/ Airport DPT DIAL DSL CABLE Branch Office LR ETHERNET LR ETHERNET DWDM On the Move SONET METRO Mobile Wireless ASP Small Business PSTN Personalized “Any Play” ExperiencesProviding Means for Service Continuity, Customer Stickiness

18. Identity and Mobility Management • User / Device ID • Subscriber Awareness • Location / Presence • Service Registration • Audit / Logging • Assured Authentication • Device Roaming • Service Mobility • User Mobility Cisco Service Exchange Framework Service Policy and Resource Management Session and Media Management • Subscriber Policy • Application / Chaining • Per-Subscriber Service • Service Invocation • Call Control • Session Border Control • Rich-Media Control • Diff Bandwidth & QoS per Session • Accounting / Billing Service Exchange Framework Making “Any Play” Real

19. Identity and Mobility Management Who? Where? • User / Device ID • Subscriber Awareness • Location / Presence • Service Registration • Audit / Logging • Assured Authentication • Device Roaming • Service Mobility • User Mobility • Who is the user? • Device • Profile • Location • Presence • Where can the user roam? • Track/recognize the devices across carriers • Maintain the session across multiple networks • Offer all services in all locations Cisco Service Exchange Framework What? How? • What can the user do? • Within what timeframe • To what extent • Under what rules • How can resources be dynamically controlled? • Interwork and provide rich media control • Monitor and charge on a per-service, per-user basis • Enable application awareness Service Policy and Resource Management Session and Media Management • Subscriber Policy • Application / Chaining • Per-Subscriber Service • Service Invocation • Call Control • Session Border Control • Rich-Media Control • Diff Bandwidth & QoS per Session • Accounting / Billing Service Exchange Framework Making “Any Play” Real

20. Service Exchange Internet Barriers to Harnessing More Profit and Subscriber Loyalty: Service Exchange Enables: • Insufficient information yields an uncertain revenue model • Network congestion and contention for scarce bandwidth degrades subscriber experience, leading to increased churn • Application and subscriber-level control • Usage reporting and billing • Programmability for any current/future customer need • Mobility management Control: Turning an Uncontrolled Network … … Into a Controlled Network Cable POP OSS Billing NMS DSL POP Content Delivery Network Backbone Network Mobile POP )))))) Multimedia Servers )))))) Optical POP PSTN

21. Reduction of peer-to-peer traffic delivers: Improved performance and more bandwidth for interactive, billable apps Reduction of number of support calls with level of service complaints Actual Customer Data Reduced Transit Costs More BW for Interactive Apps = Improved Performance, Reduced Support and Churn Efficiencies: Reduced OpEx and CapEx Example: Application Traffic Optimization Video Web P2P

22. Cisco Service Exchange Framework Service Exchange FrameworkOpen Framework for ‘Any Play’ Delivery Session / Call Control BTS / PGW / SBCMGX 8880 Media Gateway Broadband AggregationBRAS / ISG Cisco 10000 / 7x00 / uBR Integrated Policy ControlCisco Service ControlCisco BB Policy Manager Security Services DDoS ProtectionCNS Access Registrar Cisco Partners Video Video & Multicast CACContent Delivery System Mobile IP Cisco Mobile Exchange • Supports both IMS and non-IMS apps • Enables fixed-mobile convergence • Better app, service, subscriber awareness • Protects branded services • Expedites speed to service • Open / standard interfaces

23. Cisco Service Control EngineOverlaying Intelligence and Application Level Control Programmable Element Enabling: Delivering: • Stateful deep packet inspection • Wire-speed analysis and control • Subscriber and application awareness • Integration with OSS and BSS systems • Granular usage analysis • Application-level traffic optimization • Service-level security • Tiered services and access control • Content charging • ‘Any Play for Experiences’ service enablement on a converged network Cost Management, Revenue Creation, and Extensibility Cisco Service Control Engine 1000/2000

24. Cisco Call Session Control Platform Delivering Rich Multimedia SIP-Based Communications • Advanced Applications • Developer Program • Gaming • Buddy Finder Application Servers e.g., Voice Services, 3rd Party Call Control Presence Server Real-Time Subscriber Status • Dispatch • Desktop PTT • Fleet Management • Customer Service PSTNPLMN Cisco Service Engine Data, Routing, Service Integration Cisco Call Session Control Platform • Portals • Push-to-Portal • Content Location and Delivery • Information Alerts Other Carrier Cisco Name Resolution Server Inter-Domain Routing Cisco Edge Proxy Access Management • Presence • Presence-Enabled Buddy List • Presence-Enabled Call Routing Enterprise 3G Data Cable/ DSL • Basic Calling • One-to-One Calls • Group Calls • Buddy Lists • Voice and Video WiFi Value Increases as Features are Added to the Base Functionality

25. Cisco Call Session Control Platform CustomersCustomer Examples Network Service PCS Ready Link (POC) Nationwide “Push-to-Talk” Walkie Talkie-like Service U.S. First Nationwide Push-to-Talk Service in Mexico (called RadioUnefon) Mobile Telephony Mexico Integrated VoIP(Local & Long Distance) The world’s first 100% IP local phone network U.S.

26. IP NGN Video Networking Leadership Cisco Video Networking • Optimize investments with industry first asymmetric nxGE video networking • Asymmetric EtherChannel • Unidirectional link routing • Integrated 1GE, 10GE optics • Unmatched video to network linkage for better customer experience • Enhanced multicast for better channel switching time • IGMP v2 to v3 mapping for security, scalability, flexibility, simplicity NGDigital Video ControlPlane Video Services Digital Broadcast Video Intelligence GigE Switching GigE Cntrl OptimizedGigE GigE Transport Integrated Optics Cisco 7600/Catalyst:Intelligent Video Edge

27. neuf telecom, France National Metro Network, more than 50% nationwide coverage NeufTV and CanalSAT offer digital quality TV over DSL QoS-enabled, intelligent video distribution Unmatched Cisco IP GigE Video Experience STB FT PoP Catalyst 3550 Regional IP Metro Ethernet Next-Gen DSLAM STB National Metro IP / 10G Ethernet Core Cisco 7600 • 10M+ VoD Subscribers Hong Kong Broadband

28. Operational Layer Intelligent Networking Network Convergence Presence-Based Telephony IP Contact Center Tele- Presence Web Services Mobile Apps Collaboration Application Layer Open Framework for Enabling “Any Play” Delivery(Any service, to any device, to any location) Identity Policy Billing Self Service Cisco Service Exchange Framework Service Layer Mobility Customer Element Access/ Aggregation Intelligent Edge Multiservice Core Network Layer Transport

29. “20 Years of Innovation” Technology Strategy Smarter Faster Lasting Products  Systems  Solutions

30. Inter- connect TV / Video / Content Data Center Inter SP Working Internet/ VPN PSTN Access/ Aggregation Intelligent Edge Multiservice Core Cisco uBR Cisco 10000 Cable / DSL Cisco 12000 Cisco 12000 Cisco MGX Cisco AS5XXX Frame Relay / ATMMedia Gateway Cisco CRS-1 Cisco 10000 Cisco Catalsyt Cisco 7600 Cisco ONS 153xx Cisco 7x00 Metro Ethernet IP RAN / STP Transport Cisco ONS 15454 MSTP / MSPP Cisco ONS 15600 MSPP Wireless Cisco IP NGN Technology Spanning Secure Network Layer Customer Element Home Networking Linksys / Scientific Atlanta Small/Medium Business QoS Security Multicast Hosted / Managed ISR / IPT Enterprise/ Branch Cisco ISR Hot Spot Aironet Mobile

31. Inter- connect TV / Video / Content Data Center Inter SP Working Internet/ VPN PSTN Intelligent Edge Cisco 12000 Multiple Emerging Technologies Cisco 10000 Convergence Cisco 7x00 Cisco ONS 15454 MSTP / MSPP Access-Agnostic Convergence Customer Element Access/ Aggregation Multiservice Core Home Networking Cisco uBR Cisco 10000 Linksys / Scientific Atlanta Cable / DSL Small/Medium Business Cisco MGX Cisco AS5XXX Hosted / Managed ISR / IPT Enterprise/ Branch Frame Relay / ATMMedia Gateway Cisco CRS-1 Convergence Cisco ISR Cisco Catalsyt Cisco 7600 Cisco ONS 153xx Hot Spot Metro Ethernet Aironet Mobile IP RAN / STP Transport Cisco ONS 15600 MSPP Wireless

32. Cisco IP Next Generation NetworksIP Forms the Foundation for True Mobility for WiMAX Subscriber Radio Networks Mobile Service Exchange Multiservice IP/MPLS Core Internal Services and Operations External Services Packet Gateways IP Anchor Point IP Service Control Persistent Roaming Across Wireless Access Networks Subscriber-Differentiated IP Service Delivery Corporate VPNs UMTS / HSPA Roaming Exchanges News Portals GGSN Location Services Broadcast VoD CDMA IP Transfer Point Mobile IP Home Agent Music VoIP PDSN ASN-GW Wireless Mesh Internet WiMAX Wireless LAN Controller Billing WiFi DNS Service Control AAA Session Border Controller Subscriber Profiles Policies Content Services Gateway Signaling Networks Application Partners IP Media Partners Logging

33. Customer Element / Business CPEEvolution of Cisco Integrated Services Router (ISR) ISR Introduced 1M Sold 2M Sold Integrated Security • DMVPN • Incident Control System • SSL VPN • AIM VPN-SSL • Group Encrypted VPN • Cisco Security Manager • NAC • Secure Device Manager Unified Communications • Secure Voice • Multi-language voicemail • SIP Phone Support • Voice XML • Integrated Messaging • Integrated Video • QCT 3.0 • SIP Trunk Support Application Aware Networking • WAFS • Network Analysis Module • AON on ISR • WAAS • NAM Integrated Communications • Linux Services Engine • Unified WLAN switching, 802.11a/b/g • Integrated switching with PoE, StackWise stacking • G.SHDSL • Satellite Module • DOCSIS Cable 2004 2005 2006 2007

34. Concurrent Wire-Speed Services Cisco’s New Integrated Services Routers Embedded Security and Voice in Branch and Small Office Routers Performance with Services Integrated Services Routers Embedded Security, Integrated with Voice 5X Service Density, 10X Performance, 4X Memory Compatibility with Existing Router Modules Network Availability and Resilience

35. Customer Element Evolution of the Home Network: Separate to Converged

36. Accelerating VoIP Migration Leading Cisco CPE Solutions Drive Voice Growth Relationships with leading VoIP providers: • Linksys achieves 1,000,000+ VoIP ports in six months (as of March 2005) • Includes analog telephone adaptors and VoIP routers • Fastest selling technology and product line in Linksys history • Integrated series router (ISR) ramps quickly—on track for $1B annual run rate (as of February 2005) • 20% of ISR sales volume attributed to voice solutions • 40% of ISR sales volume attributed to security solutions Cisco ISR

37. Core/EdgeEvolution Blurring Boundaries Intelligent Edge • Virtualization • Service flexibility • Scalability • Continuous operation • Management • Investment protection • Security L2 VPN L3 VPN IP/MPLS Core Metro Ethernet Firewall VoIP Video FR/ATM/LL One Network, Many Services

38. What Is IPoDWDM? • IPoDWDM is a new network model which integrates the Transponder within the Router Blade • This reduces both Cap as well as OP Ex while increasing network scalability, flexibility and time to market • Integration of the DWDM transponder onto the Router blade allows for a robust, intelligent network

39. IP-over-DWDM Converged NGN Transport • Packet layer convergence to IP/MPLS has delivered CapEx & OpEx savings in core networks • WDM layer convergence has enabled CapEx & OpEx savings in multi-service metro networks • Significant additional CapEx/OpEx saving can be delivered by converging the IP and optical layers! Video Voice Data IP / MPLS SAN TDM Other l services DWDM

40. Why IPoDWDM Traditional Model: External Transponder OC768-SR OC768-SR 40G DWDM 40G DWDM Transponder Transponder TX RX TX RX TX RX TX RX TX RX TX RX 1 2 3 4 5 6 Next Gen.: IPoDWDM OC768-ITU OC768-ITU 40G DWDM 40G DWDM TX RX TX RX 1 2

41. Increased Performance 4x increase in throughput for existing 10G DWDM systems Lower CapEx 50% optics reduction Lower OpEx Fewer shelves (space, cooling, power, management), fewer interconnects Enhanced resiliency Fewer devices, fewer active components, fewer interconnects Transponder Integrated into CRS-1 CRS-1 ROADM DWDM I/F Why IPoDWDM Performance, CapEx, OpEx Before CRS-1 Transponder ROADM

42. IPoDWDM Consolidation ROADM Core Services Edge Access / Aggregation IP NGN POP Consolidation Layered IP POP ROADM Transponder Core Peering Distribution Services Edge Access / Aggregation Capex/Opex reduction, Increased Service Flexibility