Business visions behind NGSON Global Standards Collaboration (GSC) 14 DOCUMENT #: GSC14-PLEN-022 FOR: Presentation SOURCE: CCSA AGENDA ITEM: Opening Plenary 6.9 CONTACT(S): Wang.xuemin@huawei.com Business visions behind NGSON CCSA-Huawei Technologies Co.,Ltd Page 1

Table of Contents Business Dilemmas Visions & Solutions Key technologies Conclusion Page 2

Problem of network operators More and more enriched services and content on the Telecom networks are forcing the bandwidth requirements to grow exponentially, the cost of operators to great increase. Even though more subscribers attracted by enriched services, the annually decreasing ARPU is causing operators’ margins to erode. Page 3

Business dilemmas behind Network operators Bandwidth requirement exploding ARPU decreased, revenue eroded Internet services – good QoE Minor income with heavy burden Voice is still major income source Challenged by VoIP with zero price Data services increasing dramatically Price competition will come soon Service & content providers Major income from advertisement No such thing called ARPU Internet services are popular All users are behind masks, hard to locate target customers proactively Vertical industries & companies Internet portal becomes necessity How about mission critical business? End users I love Internet !!! Sometimes QoS is a problem It’s dangerous if you are exposed Services and Advertisements are everywhere Becoming spam, but still hard to find out critical services in time Telecom services are stable Limited services, not attractive at all Too stiff, not adaptive Page 4

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Service & content providers Vertical industries & companies Visions Network operators Price competition will come soon Challenged by VoIP with zero price Minor income with heavy burden ARPU decreased, revenue eroded Vision-1 Increasing customer Loyalty, mitigation of price competition; Optimizing resources Service & content providers All users are behind masks, hard to locate target customers proactively No such thing called ARPU Vision-2 High accuracy advertisements: AdvertiService Vertical industries & companies It’s dangerous if you are exposed Sometimes QoS is a problem How about mission critical business? Vision-3 Telecom level support End users Limited services, not attractive at all Too stiff, not adaptive Becoming spam, but still hard to find out critical services in time Vision-4 Customer-centric service provision Page 6

Service & content providers Vertical industries & companies Solutions Network operators Vision-1 Increasing customer Loyalty, mitigation of price competition; Optimizing resources Solution-1 A service overlay network run by network operators, with context aware, dynamically adaptive and self-organizing capabilities Service & content providers Vision-2 High accuracy advertisements: AdvertiService Solution-2 Customer-centric service interaction Vertical industries & companies Vision-3 Telecom level support Solution-3 QoS/bandwidth/latency guaranteed & privacy protected on valuable services End users Vision-4 Customer-centric service provision Solution-4 User, service, network & device context aware Page 7

The NGSON PAR vs. the Solutions PAR Request Date: 14-Feb-2008 PAR Approval Date: 27-Mar-2008 PAR Expiration Date: 31-Dec-2012 Project Number: P1903 2.1 Title: Standard for a Next Generation Service Overlay Network Solution-1 Solution-4 5.2 Scope: This standard describes a framework of Internet Protocol(IP)-based service overlay networks and specifies context-aware, (e.g., such as required Quality of Service(QoS) level, type of service such as real-time vs. data, nature of data stream such as I-frame vs. B-frame, and type of terminal such as TV monitor vs. Personal Digital Assistant) dynamically adaptive (e.g., using locally derived information to discover, organize, and maintain traffic flows in the network within a local area network), and self-organizing networking capabilities (e.g., developing network structures based on the needs of the customers and the capabilities of existing network structures), including advanced routing and forwarding schemes, and that are independent of underlying transport networks. Vision-3 Solution-3 Vision-2 Solution-2 5.4 Purpose: The purpose of this standard is to enable network operators, service/content providers, and end-users to provide and consume collaborative services by the deployment of context-aware, dynamically adaptive, and self-organizing networking capabilities. 5.5 Need for the Project: The amount of services and applications and their interaction are increasing at an exponential rate. This standard is needed to provide a better, more efficient way of providing these services and applications by means of context-aware, dynamically adaptive, and self-organizing networking capabilities. Page 8

But, the NGSON is NOT … The NGSON is NOT expected to solve all problems by itself, but a fulcrum for network operators to solve some critical problems by means of: Interconnection of large number of existing & emerging services and enablers; Combination of advantages from both Telecom networks and Internet; Protection & utilization of user information already exists; Optimization of network resources in a smart way. Page 9

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Service layer evolution 1st gen.: Traditional Silo architecture 2nd gen.: Centralized SDP solution Next Generation Service Overlay Network Next gen.: Loosely coupled service network architecture Interconnect a large number of existing / emerging services / enablers Enhance reusability of services / enablers worldwide Cost-efficient creation of services Harmonize service / network operators, service providers worldwide … Page 11

Service router-centric Architecture … Service Overlay Network Transport Network Mobile Optical xDSL Self-organized networking Service virtualization and interaction Service & resource addressing Context-aware service routing Service charging Service router-centric Architecture Page 12

Technical requirements General functions Addressing Identifier Standard interfaces and protocols (2) User privacy (2) Interworking (2) Mobility Network related functions Support of network routing Self-organization (3) Adaptiveness Identity Resource virtualization (2) Resource scheduling OAM related functions Manageability FCAPS Service management Lifecycle management (2) Inter-provider service Open environment Service related functions Dynamic service routing (2) Service routing (2) QoS (3) Registration Registration and discovery Registration / de-registration (4) Service discovery (4) Directory (2) Negotiation Service composition (5) Billing of composite services Charging and billing Seamless mobility support Context awareness (9) Self-organizing (5) Adaptiveness Dynamic auto-configuration Security (3) Authentication (3) Service brokering Service coordination (3) Service collaboration Virtualization Page 13

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Conclusion For almost all players in ICT, there are some bothering dilemmas existing. IEEE NGSON is trying to solve these dilemmas through a service-overlay-network run by network operators, with context aware, dynamically adaptive and self-organizing capabilities. Under this scheme, large number of existing & emerging services and enablers will be interconnected, Telecom & Internet advantages will be combined, protection and utilization of user information will be balanced, and the network resources will be optimized in a smart way. The RD (requirement document) is going to be frozen soon, NGSON WG is willing to cooperate with ITU-T and other related SDOs. Your support and participate are appreciated. Page 15

Where to find NGSON Email exploder for people interested: stds-P1903@ieee.org For question (Chair of NGSON WG: Rick Townsend): ricktownsend@comcast.net Website: http://grouper.ieee.org/groups/ngson Page 16

Thank you! Page 17