ATM-SDH SYSTEM AND ITS MARKET POTENTIAL

BY

FARRUKH HASSAN

NPGIT&I, ISLAMABAD.
1/24/2014

BRIEF DESCRIPTION

-ATM-SDH (Asynchronous Transfer Mode - Synchronous Digital Hierarchy) system is basically meant for BroadBand (BB) Networks . -ATM switch is capable of handling different types of traffic at different flexible transmission rates. 1/24/2014

COTD.
-SDH provides a physical mean for transmitting large amount of data with flexible path management. Thus both ATM and SDH form a platform for broadband services.

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NEEDS AND EXPECTATIONS

The need of broadband networks is increasing due to requirement of large and high speed data transmission. To offer integrated solution for voice ,data and video on a single platform at national level.

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New Technologies Offering Better Quality

Bandwidth Efficiency

High

High

Low

64K PCM 32K ADPCM 16K LDCELP

Voice Quality

VoFR * 16K HCV 8K HCV

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Low

CONTD.
Rapidly increasing number of services the dynamic nature of market making the investment risky The deregulation process and convergence of different technologies

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OBJECTIVES SET:
Technical Aspects Technical and financial comparison among technically possible systems Feasibility for PTCL

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Methodology
Description of ATM,SDH,PDH,IP & VOIP transport interfaces. Comparison of different technical feature for broadband backbone solutions. Investment Appraisal method for different solutions (market risk,cost,flexibility,project synergy,etc.)
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 Key success factors (supplier credibility, innovation,lead time,market opportunities, service backup,market differentiation,etc.) proposed solution for PTCL.

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Packet N/Works:Virtual Circuits and Datagrams

Vitual Circuit Oriented
ATM,FR MPLS-specified to much extent by ITU,ITEF Traffic engg. feasible SLA (service level agreement) is feasible

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Contd.
Datagram
IP,Ethernet Traffic engineering not feasible SLA is not feasible

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CHOICE OF A BACKBONE BB NETWORK

Simple ATM-SDH system IP+ATM system (based on MPLS ,i.e.,multiprotocol label switching ),VC oriented Packet over Sonet/SDH (Datagram) DWDM(Dense wave division multiplexing)

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Proposed ATM-CORE BACKBONE

(OPTION) SAT E3 nE1's MULTI-SERVICE SWITCH LAHORE SAT E3 nE1's

MULTI-SERVICE STM-1 SWITCH ISLAMABAD nE1's FRE(Card) DXX

STM-1 SDH

MULTI-SERVICE SWITCH KARACHI nE1's

STM-1 SEA-ME-WE 3

FRE(Card) DXX

ISP

ISP

ISP

ISP

Existing Network Equipment

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Required Network Equipment

CHANGING TRENDS
View Until Early 1996:
IP IPX ATM FDDI PPP Ethernet SONET Point-TO-Point links

View in late 1996

IP IPX ATM FDDI PPP Ethernet SONET PPP Links

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ATM Evolution
voice ACCESS LAYER:(MULTISERVICE ACCESS) xDSL

Data Control

LOCAL SWITCHES: Moving to CALL SERVICES over MULTIPLE TRANSPORT TECHNOLOGY

ATM TDM

ATM

BACKBONES: Moving to ATM and to electronic integration ATM OVER OPTICAL FIBRE

SDH

ATM

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WDM

What is ATM?
ATM (Asynchronous Transfer Mode) is a standard based switching technology used to deliver multimedia services over broadband network. It uses fixed length cells consisting of 53 bytes, 5 of which are for the identification. Each cell contains a virtual path identification (VPI) and virtual circuit identification(VCI), within the transmission 1/24/2014 path.

Basic ATM Cell Structure

5 48 Bytes

Label

Data

12

16

12

Binary Elements

Virtual Path Indicator

Virtual Circuit Indicator

Binary Elements

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Data Type

Priority

Fault Control

Virtual Container and Virtual Path

Virtual Circuit 1 Switch Switch

Switched Network

Virtual Path

Cross Connect

Cross Connect

Cross Connected Network Base Path

Circuits

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Key Features of ATM

Setup of end data paths using standard signalling and ATM cells routing Segmentation of packets into cells and reassembly at her destination Statistical muxing and switching of cells Network congestion control Advanced traffic management control
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SONET/ SDH
SONET/SDH are standards for the transport of data over optical media between two fixed points Use 810 bytes frames as a container for the transport of data at speeds of upto OC192(9.6Gbps) Used for higher layer protocols such as ATM or PPP
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Synchronous Transport Module(STM) of SDH

Virtual Container Mixing within the STM 1 Frames Resulting Signals Tributary Signals

2 Mbit/s

Optical Head Insertion of Plesiochronous Signals in the Virtual Containers

STM 1

34 Mbit/s

Backup Line for Transmission Security

Optical Head Visual Container 4 STM 1

STM 1

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Interface Degestion

Plesiochronous Digital Hierarchy(PDH)

PDH is the standard of transport of data over optical media by increasing the rate of tributary signal through multiplexing which are available at common transmission rates of 64, 2048, 8448,3436, 13900 Kbps, etc. ITU-T recommendation G.702 defines these rates The main operational fiber link in Pakistan.
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Internet Protocol and VoIP

IP is an encapsulation method that surrounds its payload, using a header structure prefixed to the payload used as a protocol for the internet. It is a datagram protocol in which individual packets are passed through the IP network on the best efforts bases. The delivery of voice (and other media types) , along with the information required to control the delivery of packets , across 1/24/2014 the network over IP is called VoIP.

OSI/ TCP-IP Comparison

Level 2

IEEE Level 2

Level3
Level 4

IP(ICMP,IGRP,ARP)
TCP/UDP

Level 5

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. Today, TCP/IP nets are already capable of converging voice and data to handle information , telephone call, videoconferencing, and interactive gaming, as well as streaming audio/video and multicast delivery. With continued improvements in the performance of internet protocols and the availability of higherspeed backbones and managed infrastructures, multimedia messaging, telemedicine, distance learning, and on-demand entertainment will become ubiquitously available via TCP/IP nets.
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 As the vehicle of choice for the convergence of . voice, video, and data traffic, IP will characterize the next generation of public networks. Some industry analysts predict that 99% of the worlds bandwidth capacity will be used for Internet traffic and all voice traffic will be carried over IP by2004. IP also provides seamless integration between wire line and wireless networks. Although there are other protocols that offer compelling advantages of their own--notably, Asynchronous Transfer Mode (ATM)--none is capable of matching IP in terms of economy, efficiency, and global reach. 1/24/2014

 It has been estimated by various industry analysts that AT&T for example, stands to lose between $620 million and $950 million in international calls to IP telephony by 2001 alone which would account for more than 4% of its total revnue. Several protocol standards exist-such as RSVP (Reservation Protocol) and RTP (Rapid Transfer Protocol)- but none is universally implemented, except on private intranets where an organization has more control of the routers and switches within its domain.
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 There are new proposals being considered, such as differentiated services (Diff-Serv) and simple . integrated media access (SIMA), which define IP classes of service (QoS,) but these are not likely to be agreed upon or widely deployed any time soon. IP provides near-universal connectivity at the lowest cost. ATM improves network performance by prioritizing traffic (even IP traffic) according to QoS parameters. SONET provides integral monitoring features that can be used to trigger automated link restoral functions without disrupting service.
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 Sensing that the networking landscape is about to change in a big way, AT&T, MCI WorldCom, and Sprint have all established high-speed internets. AT&T and British Telecom (BT) have even teamed up in a $10 billion. joint venture to build an intelligent, managed IP-based global network that will provide telephony, electronic commerce, call centers, and new Internet-based applications in support of international organizations and executives on the move. The two companies will spend another $1 billion in United States to acquire companies that offer products services that can be plugged into this new IP infrastructure. The long distance company is using TCIs cable lines to deliver high-speed internet, IP-telephone, and television services. Bell Atlantic is trying to establish a presence in the IP telephony market because it sees voice and data networks rapidly converging and expects
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Transporting IP Over ATM.

This involves mapping of IP data streams into ATM virtual circuits. Virtual circuit may be switched (SVCs) or permanent (PVCs) type. Two standard protocol are used for this purpose: Multi-protocol Over ATM (MPOA) and Multi-protocol Label Switching (MPLS).
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Transporting IP Over SDH.

Faster routers using the point-to-point protocol (PPP) are capable to transport IP traffic over SDH/SONET. The data streams are mapped into STS frames. Frames may travel at OC-3,CO-12 & OC48 rates. This technique is also wide spreading due to its simple configuration.
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Specifications/features for consideration.

Bandwidth Quality of service. (QoS) Resiliency Speed Scalability Port density Multi channel interface

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Contd.
Security Bandwidth management. Differentiated services Service level agreement (SLA)

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Benefits of ATM Over SDH.

ATM over SDH operates upto speed of 626 Mbps (OC-12) and presently even more. It provides QoS guarantees, making it suitable for voice and video. It can accommodate multiple services and protocols. For telco networks carrying thousands of voice conversation, its still the way to go.
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Basic TransportStructures
IP over ATM
IP FR SONET FIBRE ATM WDM PPP SONET FIBRE

Using MPLS protocol

IP MPLS FR ATM WDM

Using WDM to consolidate BW demand.

ATM SW ATM SW

8 x OC-3

WDM

WDM

8 x OC-3

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Benefits of Packet Over SDH/SONET

Now IP can operate at very high speed to provide QoS which was not possible three years before ago. This technique reduces the over head required for encapsulation of IP into ATM cells, thus increasing the bandwidth efficiency. The cost reduces due to elimination of ATM layer.
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Evolving asynchronous transfer mode ATM applications.

ATM offers the bandwidth and the flexibility you need to support a wide variety of applications. Some common applications for ATM are described below: LAN internetworking. Linking local area networks (LANs) so that they can share real time.

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Contd.
Data Warehousing. Storing data in a location where access to it is client/server based instead of terminal-tohost. Large database file transfers. Transmitting large amounts of information in the form of voice, video and data from one database to another.
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Contd.

Computer disaster recovery. Retrieving operational systems, especially the mainframe and data, after power outages or other disasters. Resource sharing. Enabling users on a LAN or wide area network (WAN) to use the same software peripherals information.
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Contd.
Shared workstation access. Accessing high-end engineering work from workstations in different locations. Supercomputer access. Accessing a high-speed computer which uses advanced technologies such as simplified instruction sets, wide data paths, and pipeline.
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Contd.
Multi-media Integrating information which is contained in multiple forms-voice, video,image,and text-into a single application or document. CAD/CAM Creating sophisticated designs much more quickly and with greater accuracy than they could by hand (CAD); allowing the control of manufacturing process by computer
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New Applications Require Higher BW

VDSL

EMail

ADSL

Chat -Box W/processing

WW W Browsing VR/ Applications

Telephony Radio CD Library

ISDN

High Quality Vide -o LantoLan

PSTN

Text

Image

Sound

Video

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Contd.
High Speed imaging. Transmitting of screens of data in an electronic format, such as photographs, xrays, and other visuals, at high speeds. Videoconferencing. Transmitting live action interactively between two or more sites; usually for meetings or seminars.
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The Increasing Access Rates Need BroadBand Infrastructures

DOWNLOAD TIME's
60

50

40
PRESENTATION GAME

MINUTES

30

20

10

0 PSTN ISDN ADSL

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Contd.
Call center. PBX voice calls. Other broadband services are also possible using such a multi-service and highly flexible (for traffic) backbone.

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The Increased Packetised Services Need New N/Works

Total Packetised Services Revenue ($M)
60000 40000 20000 0

1995

1997

1999

2001

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2003

Marketing Strategy.
Differentiated marketing Market segmentation. Positioning. Product life cycle. System attribute modeling.

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System-A S. Attributes Importance IP+ATM No Maximum Degree Partial 10 of utility Presence 1- BW 9 8 72 2- Scalability 8 7 56 3- QoS 10 10 100 4- Flexibility 8 6 48 5- Cost 7 5 35 6- Standardization 10 9 90 7- Suppliers Choice 6 6 36 8- SLA 8 7 56 9- Traffic Management 10 9 90 Total 583

System-B POS Degree Partial of utility Presence 9 81 7 56 8 80 6 48 7 49 5 50 4 24 5 40 7 70 498

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Different vendors solutions

About 90% of routers being used are from Cisco Different companies which offer broadband solutions use Ciscos routers These solutions are mostly ATM-based solutions How ever Cisco itself offer POS solution in addition to ATM-based solution
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Worldwide trend for BB infrastructure

Many early National Access Points (NAPs) are ATM-based infrastructures in major states of USA mostly used for research (supercomputers connectivity) Some telcos of Europe , Middle East and Far east are also deploying this type of BB network

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Contd.
At the same time some telcos like Sprint , Qwest, Uunet are deploying POS infrastructure using Ciscos 12000 series GSR routers over OC-12 O/F backbone GTE Internetworking is deploying the same one to operate over its nationwide mesh of OC-3 SONET circuits.

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The Existing Setup of PTCL & Need to up-grade it.

Presently frame relay (FR)services at rates of E1 are being provided alongwith legacy packet services. FR is low speed and replacement of legacy leased lines. Broadband applications with flexible switching possible through ATM only.

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Hyderabad

Rawalpindi

Peshawar

KM4,Lhr

KC4 =172.16.31.10 RAWALPINDI=172.16.255.10 QUETTA =172.16.31.18 LAHORE =172.16.255.18 HYDERABAD=172.16.31.65 PESHAWAR =172.16.255.25 MASK IP =255.255.255.252

Etisalat

Quetta

BACKBONE ROUTER

RAWALPINDI=172 .16.7.10 MASK IP =255.255.255.252

SWITCH

RAW

RAC Router

SECONDAY DNS 203.135.28.243 255.255.255.240

IE0.RAC1.KMR.PTC.PK LAN IP =203.135.29.62 WAN IP= 203.135.29.65-124 IE0.RAC2.KMR.PTC.PK LAN IP =203.135.29.61 WAN IP= 203.135.29.129-188 IE0.RAC3.KMR.PTC.PK LAN IP =203.135.29.60 WAN IP= 203.135.29.193-242 IE0.RAC4.KMR.PTC.PK LAN IP =203.135.29.59 WAN IP= 203.135.30.1-60 IE0.RAC5.KMR.PTC.PK LAN IP =203.135.29.58 WAN IP= 203.135.30.65-124 IE0.RAC6.KMR.PTC.PK LAN IP =203.135.29.57 WAN IP= 203.135.30.129-188 IE0.RAC7.KMR.PTC.PK LAN IP =203.135.29.56 WAN IP= 203.135.30.193-242 IE0.RAC8.KMR.PTC.PK LAN IP =203.135.29.55 WAN IP= 203.135.31.1-60 IE0.RAC9.KMR.PTC.PK LAN IP =203.135.29.54 WAN IP= 203.135.31.65-124 IE0.RAC10.KMR.PTC.PK LAN IP =203.135.29.53 WAN IP= 203.135.31.129-188 IE0.RAC11.KMR.PTC.PK LAN IP =203.135.29.52 WAN IP= 203.135.31.193-242

IEO.RAC1.ABB.PTC.PK LAN IP=203.135.6.142 WAN IP=203.135.7.1-36 LAN MASK=255.255.255.240 WAN MASK=255.255.255.192

SWITCH FIREWALL 203.135.6.137 203.135.28.240 203.135.29.8 255.255.255.240 255.255.255.192 255.255.255.240

SWITCH

RADIUS SERVER 203.135.28.242 255.255.255.240

SWITCH 203.135.6.138 255.255.255.240

FTO HOSTING 203.135.28.244 255.255.255.240

LAN MASK=255.255.255.192 WAN MASK=255.255.255.192

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PAKNET KARACHI

PAKNET ABBOTABAD

BACKUP SERVER 203.135.28.245 255.255.255.240

Benefits of Combining FR, LL & ATM

By connecting a FR (frame relay) network to an ATM backbone,the user can benefit from low delays. User can have better control over cost of equipment FR and LL (leased line) streams can benefit from the fully provisioned QoS capabilities of ATM
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A Possible Advantage of ATM over Old Network

Supports 1/0 and 3/1 DACS Flat hierarchy to STM-1 and STM-4 Increased Efficiency More throughput ATM switching technology routing & signaling protocols Support TDM Test Access TDM E1 C P E E3 D A C S E3 3/1 DACS 3/3 DACS ATM DACS (DIGITAL ACCESS CROSSCONNECT SYSTEM)FUNCTIONS BENEFIT

3/1 DACS

3/3 DACS

S D H

STM 1

85

44

85

85

72

85

61

85

52

ATM

E 1 (64K) C P E ATM Switch STM 1

S D H

STM 1

9 85 85 85 9 85 65 Bandwidth Efficiency, Reduced Operations Costs

85

55

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Multi-protocol label switching (MPLS)

With MPLS , IP services can be delivered over a routed or multiservice switched network. N/work determines the packet routing and class of service(CoS) requirements by application. A label is assigned to each packet as per specific service attribute. Labels are removed when they exit the
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An Example of MPLS-Based Network

IP Packet Router A Node A

IP Packet Node B

Label IP Packet

IP Packet Router B Node C

Label IP Packet Node D

Label IP Packet Node E

IP Packet

Route

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Transmission and Interfaces

1-Synchronous Transmission. Synchronoch clock is derived from data streams to be multiplexed. SDH uses this principle. 2-Plesiochronous Transmission It relies on increasing rate of the tributary signal to be multiplexed to a rate that is synchronously derived from the new aggregate rate. 1/24/2014 .

Contd.
3-Asynchronous Transmission Places no implicit constraint at the rate structure of the data . Each block is preceeded by a header.

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PDH Interfaces
1- NNI (Network made interfaces) standardised by Recc. G. 703. 2- May be twisted pair/coaxial line /radio/optical fibre. 3- PDH primary path layer specified by G.704 for ISDN, etc.

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SDH Interfaces.
1-Mapping of synchronous/pseudosynch. Signals into SDH VCs (virtual containers). 2-Mapping nx64 Kb/s services. 3-Mapping of unsynchronized signals (PDH Signals)

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Use of PDH for the Transport of ATM & SDH Traffic

PTCLs PDH Optical fiber network can also be utilized for this BB network. SDH modem (Mapping recommendation G. 732) can be used for this purpose.

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Detailed Technical Comparison of ATM over SDH & PoS.

To meet with the capacity requirements and deliver services in cost effective and revenue generating manner we consider the end user requirements and service provided requirements before this analysis. 1- End user requirements. In order to understand the changing demands on the service providers network, it is first necessary to understand the enterprise and 1/24/2014 residential drivers for IP based services.

Contd.
The issues and challenges facing the enterprise include: Need to offer IP based subnets such as intranets and extranets in cost effective and secure manner. Need to do more with less demands is increasing but IT budgets are staying relatively constant. Need to reduce WAN capital and operating
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Contd.
Need for new private network alternatives that use the public internet infrastructure, but are secure and reliable (the industry buzz word for this is virtual private networks or VPNs). Need for deterministic service level agreements (SLAs) so that enterprise customers can be assured that service based on the providers network will be available 1/24/2014 when required.

Contd.
New multimedia application services (corporate and personal) Faster access to the corporate network.

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Contd.
2- Service Providers Requirements.
Provide more bandwidth at both the network, edge and the core. Sell bandwidth in varying increments at a market driven price. Scale the network in manageable way. Make the right technology decisions for the future. Work with todays equipment.
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Shift in Network Pattern

As the protocols shift, network usage pattern being turned upside down. Old rule was network traffic 80% local & 20% wide area. Today, worldwide ratio is about 50/50. It is expected for 80/20 rule to be returned but with 80% wide are a applications. This shift has impacted the existing SONET/SDH infrastructure. 1/24/2014

Contd.
So future plate-form of choice needs to maintain low latency and the resiliency of SONET/SDH. A proposed future multiservice core setup is given below :

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IP Network (S)

Edge Router

ATM Core
ATM

ATM

Core Router ATM Core

Edge Router

ATM Core

ATM Core
IP / ATM Cell Relay Frame Relay Leased Line

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Provisioning & Selling of Differentiated Services.

Traditional internet access services are based on selling best effort access for a fixed price. Service providers thus try to reduce cost by increasing margin. A new opportunity occurs by selling differentiated IP services to business customers who want to out sources their wide area networking business.
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Contd.
The focus is to provide secure, reliable private IP-based interconnection. Using an IP over ATM network, the service provider has an opportunity to sell differentiated IP VPN (virtual private network) services.

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Network Management
In IP Over ATM the focus of network management is to manage services rather than individual devices or point-to-point connections. To maintain the appropriate accounting an performance statistics that are vital for billing, general customer service and the monitoring of IP SLAs (service level agreements).
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Contd.
In IP/PPP over SDH/SONET point-to-point links individual routing devices are managed. IP traffic being routed as a connectionless services, causes individual data streams invisible to the network, difficult to monitor or to offer SLAs. However it is suitable for customers needing best effort services.
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Scaling
Data transport capacity is increased by scaling the ATM. ATM data streams are divisible via virtual ccts., so addition of new customers not necessarily requires the addition of new physical ports. In PoS router networks scaling is made by adding new routers for increasing its capacity
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Over Head Issues.

IP achieves about 80% of the available line rate over ATM. IP achieves about 95% of the available line rate over PPP/SDH/SONET.

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Multi-Service Networks.
ATM can easily handle different service like, FR, cell relay, circuit emulation, SMDS & various types of user traffic. Allows services providers to coexist. PoS is immature in this area or more precisely not standardised.

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Conclusion
Well known ATM is more standardized. ATM gives better network management. Cost of overhead issues and simplicity of the network are strong points of PoS. ATM provides differentiated IP VPN services to the business customers. Less risk involved as ATM is now a matured technology.
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Contd.
Better backup service, as many vendors are providing ATM based solutions. Study to be made on PoS and other emerging technologies and adopted as they become feasibile as per TPCL requirements. Until then ATM may be a preferred technology.

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Investment Appraisal
Measuring the financial value of an investment in a project. The monies need to be measured on the basis of todays value. Extending the traditional scope of Cost/Benefits Analysis (CBA) into a full investment appraisal (IA). IA considers the measurement of the intangible benefits also.
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Alternative uses of an investment.

The investment can be invested in a wide ,variable of ways. A would be investor needs to know the financial return of the project pampered with any other alternative investment. The fast changing Telecom Industry needs this aspect more consideration.

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The impact of risk and use of flexibility to off set the risk.
Risk is a cost on a new project. Flexibility can be used to off set a risk. Flexibility is a mechanism by which an alternative route to success can be obtained. Projects are not static and can be extended in a scale, functionality, etc.

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The measurement of the value of intangible benefits.

Intangible benefits make up an increasing proportion of the benefits to be gained by the systems. Then the intangibles can be fairly compared with the tangible costs and benefits and a single unit of measure be obtained for all the valuation of components of a project. The measurement of the value of the benefit to be gained from projects interacting with 1/24/2014 each other is called the project synergy.

Contd.
Valuing a project on an isolated standalone basis where project synergy occurs can lead to wrong results . The aim of investment decisions is to select those projects which maximize the both types of benefits. IA has proved be more difficult for IT than for many other types of investment. The benefits of IT (information technology) projects will continue to be increasingly 1/24/2014

The difficulty of putting boundaries around IT projects.

IT often influences many areas of a business. IT often has a strategic and/or infrastructural element. This precise investment appraisal of IT has therefore proved to be difficult. The technology S-curves may predict about the life cycle of an existing and a new technology.
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A Possible Forecast for ATM AND PoS Systems

Technology maturity and Market position.

Maturity Phase for ATM-based Systems

Growing Phase for POS Systems

1994

1995 1996 1997 1998 1999 2000 2001 2002

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Contd.
May provide existing set of ideas in the beginning of the new technology for an exponential growth to occur. It cannot explain the rate of change of a technologys progress. But as an analogy it can be used for an intelligent guess at the rate of change. Anticipation and forecasting, but cannot be used to predict how that change may
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Use of experts in technology forecasting

Within R&D infrastructure, there exist experts (researchers) in science and engineering who create knowledge and invent and improve technologies. These experts can forecast about a new and immature technology.

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Delphi Technique
When used for forecasting, Delphi groups have attempted to predict what technologies may be choosed. However, technology forecasts by experts have been often turned out to be notoriously wrong, particularly about dates. What researchers really know , are: 1- a technological need,
1/24/2014

Contd.
2- Scientific theory underlying the technology. 3- Imaginative research approaches to attempt a technology. Identify future technological needs. Identify technology areas that require improved understanding. Proposed research directions to study these areas. 1/24/2014

Market Research.
The size of the market. The market share of the competitors. The growth rates past, present, and future.

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Preparing for the Future.

The issue of helping to prepare for the organizational and technological changes. Project success, therefore, should be considered as a dynamic concept in which both short-and-long term implications are considered.

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New Opportunities.
The dimension is focused on the somewhat longer range. Accessing customer satisfaction and loyalty. Willingness for additional purchases.

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Price Comparison.
Price are usually not disclosed by the companies. Average price comparison for a backbone network is described. PoS infrastructure is about 40% cheaper than the ATM-based infrastructure as ATM layer eliminates in PoS solution.

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 Given below is the ATM and IP prices report guide to GB(Gigabit)/TB(Terabit) core routers. These are average per port prices:
OC-3 POS OC-3 ATM OC-12 POS OC-12 ATM OC-48 POS OC-192 POS : $ 10,000 : $ 13,300 : $ 25,000 : $ 34,000 : $ 60,000 : $ 225,000

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Key success factors.

Identifying opportunities for making investment in projects pertinent to the objectives of a business.Monetary return is not the sole basis on which investment decision should be made. The objective of PTCL is to provide the latest telecom facilities at reasonable rate with quality standard of international level.
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Contd.
World telecos are proceeding in this direction. To be a successful organization PTCL, also , has to update its infrastructure.

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Competitive advantages for a Telco.

The price is lower The quality is higher. Availability is sooner, or more dependably just in time. Customer services is better. Awareness is greater. There are other social, psychological, and ideological reasons.
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Creating competitive advantage

Using the value-chain analysis. By placing greater or lesser emphasis on certain issues. By performing specific activities better. By managing linkages among activities beeter than competitors do.

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Other Key Success Factors

Segmentation of Operators Strategic Activities. Suppliers choice. Lead time

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Broadband Network Design

The design of a telecommunication network is not a simple task. A modern broadband network is generally more difficult than its predecessors. Many factors are involved in this regard, both technical and economical. Statistical analysis for the traffic is very important .
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Traffic Requirements and Major Equipment Requirement for NAP.

The proposed National Access Point (NAP) is the major breakthrough towards wide area networking in PTCL. The present and future forecasts for its traffic are given first. At present 22 2Mbit streams(E1s) have data circuits, I.e.,IPLCs(international private leased circuits). 12 E1s are for data and remaining for mixed voice and data.
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 STATUS OF IPLCs 2 MBIT STREAM (E1) AT ITMC KARACHI. S. Car- No.of E1s Tot- IP IPLC No. Rier E1 Mix al LC in Progress (Data)
1 2 3 4 5 6 MCI 5 Teleglobe 5 B.T. 1 Sprint AT&T 1/24/2014 Singapor 1 1 2 1 1 19 23 5 2 1 13 9 4 1 1 3

5 2 2 1 1

Table Contd.
7 Etisalat 8 Betalco 9 Malaysia 1 (512K) 10 Swizerland11 KDD TOTAL 12
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1 1 1 1 10

1 1 1
1 1 22

3 1 1
1 2 71

18

Loading and Forecast (64 Kbps Circuits) Year th 30 June INTL Circuit Switch ing 3,991 4,386 5,128 5,379 5,917 6,509 7,159 7,875 1/24/2014 International Private Leased Services (IPLS) Total

1996 1997 1998 1999 2000 2001 2002 2003

10 17 5 10 10 10 10

Data 4 7 12 54 76 106 148 207

40% 40% 40% 40%

ISP 17 43 117 199 398 796 1194 1791

100% 100% 50% 50%

S/Ware 0 0 4 25 50 90 153 230

100% 80% 70% 50%

4,012 4,436 5,261 5,667 6,441 7,500 8,653 10,103

Proposed streams for Interconnection of NAPs

The transmission requirements of NAP are summarized below : Between MSW KR &IBA Between MSW KR &LHR Between MSW IBA &LHR Between MSW KR &ITMC KR Between MSW IBA &ITMC IBA : : : : : Two E3s One E3 One E3 Three E3s Two E3s

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Contd.
As city of Lahore is not directly connected with SDH optical fibre , so one of the proposal is to make NAPs at first stage in Karachi and Islamabad and extended afterwards. So one possible configuration is given below :

1/24/2014

NWTWORK MANAGEMENT Control RSCP

Routing Service Control Point

DS3 or multiple of 2Mbps streams either on FR or TDM

5 X 2MB

5 X 2MB

DS3/Multi-E1 (TDM/FR)

DACS

ATM
ISLAMABAD

ATM
KARACHI

CPE 1/24/2014 ISP Router

Core IP / ATM RFC 1483 IP / FR RFC 1490

CPE ISP Router

To Utilize O/Fiber Backbones

Mutually independent network evolution Old layer network carried over new layer network. New layer network carried over old layer network.

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Existing and New Proposed O/Fiber Connectivity

Proposed 34 MB Link Between ITMC Islamabad and ITMC Karachi Incorporating Multiservice ATM Switch

ATM Switch

ATM Switch

High Capacity MUX

High Capacity Multiplexer

Existing Access Nodes (Karachi)

Existing Nodes (Islamabad)

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Sample Equipment at one Station

S. No 1 (i) Item Description Backbone Edge Router (completely mirrored system & interfaces) Minimum 4 processors, expandable to 12 Minimum 512 MB RAM Redundant auto-switching, auto-sensing power supplies Soloist functionality for OSPF/BGP, Firewall Internal Firewall (within router software or as add-on) with Packet Filtering and Stateful Inspection functionality as per technical specifications, manageable from a central location STM-1 (OC-3) 155 Mbps interface E3 34 Mbps interface Extra Soloist Processor with 64MB RAM for BGP processing 10/100 Mbps LAN interfaces Gigabit Ethernet interface (1000 base SX) Firewall server (Unix based) Minimum 2 processors (400 Mhz RISC based) Minimum 512 MB RAM, 60 GB Storage, 2 Gigabit Ethernet Interface Cards, Firewall software with Stateful inspection, screening and policy based filtering capabilities as per technical specifications Gigabit Ethernet Switch, 16 1000 base SX Gigabit Ethernet ports (Expandable to 48 ports) 48 10/100 base T Fast Ethernet Ports Layer 3 switching functionality Redundant power supplies Control Redundancy Network Management System -mirrored (as per technical specifications) Service Level Management 2500 user license Policy Based Networking Application for 25,000 IPS AND 2,500 devices including DHCP and DNS servers 1/24/2014 Qty 1 1

(ii) (iii) (iv) (v) (vi) 2

4 2 1 4 2 1

Market Potential in Pakistan

Pakistan being a populous country with large number of all size business units has much potential for broadband services if properly marketed. As shown in traffic forecasts in chapter 7 , if we get connected the ISPs, software exporters and point-to-point Multinationals/ Data operators to our National Access Point (NAP) , a lot of revenue can be earned.
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Contd.
Moreover , this is the matter of competative edge which is going to be crucial after deregulation in year 2002. In view of IT revolution and growing need in the country it becomes necessary to have a broadband connectivity at national backbone level.

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The Demand for VPNs.

The demand for VPN services is growing at an unprecedented rate globally. Thats because VPNs offer a scalable, reliable and predictable way to connect geographically dispersed users-a tremendous benefit for enterprise customers. The services provider VPN market is wroth over U.S. $ 200 million today.
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Contd
Scalable routing services. Easy access to network resources Guaranteed traffic delivery. Differentiated quality of service options. End-to-End, flexible provisioning. Centralized network management Partitioned management views.

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VPN services and Architectures Service Architecture Technologies ---------------------------------------------------------------------------------------------------------------------------------------Access VPN Client Initiated L2F/L2TP,IPSec,Dial,ISDN,DSL,Mobile IP,Cable NAS-Initiated --------------------------------------------------------------------------------------------------------------------------------------Internet and extranet VPN IP tunnel GRE,IPSec, Mobile IP --------------------------------------------------------------------------------------------------------------------------------------Virtual Circuit Frame Relay, ATM --------------------------------------------------------------------------------------------------------------------------------------MPLS IP,IP+ATM

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Virtual Private Networks(VPN) More Suitable on Broadband Networks

PUBLIC N/WORK
IBMAS/4 0 0

Internet

VPN

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Contd
VPN solutions that use the Internet cannot meet all of these criteria. As the Internet is a best effort medium. A position to support mission critical business applications is required. VPN services, such as frame relay, are also unable all of these requirement.
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New World
IP+ATM solutions offer service providers a single, multiservice network infrastructure that reliably carries todays revenue sources while delivering a long-term growth opportunity. IP+ATM reduces the cost of providing traditional services by integrating networks.

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Contd.
Incumbent service providers can leverage existing business relationship and network connections to provide an easy on ramp for new IP service. In mobile systems, third generation (3G) system may also require a broadband connectivity.

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Mobile Connectivity to ATM-based Multiservice Switch

Network Management

Mac Classic

BTS

BTS

M/ Ser vic e Sw .

M/ Ser vic e Sw .

PST N

BTS

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Tremendous Increase in Data Requires New Switching Setup

Growth - Voice vs Data
Percent WAN Traffic (Relative to 1996)

300 200 100 0

96 98 19 19 20 00

data voice

Series1 Series2

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Voice Over IP.

The appeal of voice over IP has its capability to facilitate voice and data convergence at the application layer. Applications layer visibility for voice enables service providers to create services such as call center management, where the voice call and data must be matched and delivered to the same destination at precisely the same time.
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Contd.
IP VPNs : where unique global identified ATM switches forward these flows over virtual circuits within the delay and discard parameters for voice traffic.

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Network Commerce
The internet dramatically changed the way we obtain, search for, and use information. It is also dramatically changing daily business processes. Network commerce, which encompasses applications ranging from retail.

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The Marketplace
140 120 100 Subscribe rs Million 80 60 40 20 0 Series2 Series1

Internet residential

Online Services

Source: Dataquest
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Internet Business

Remote Access

Internet Users Growing Demands Need New Strategies

IN 1998 100 MILLION INTERNET USERS WORLDWIDE Other 1% ISDN 6%
her MILLION INTERNET USERS WORLDWIDE IN 2002 Ot 320 2% Cable Modems 8% xDSL 9% ISDN 17% Analog Modems 64%

Analog Modems 93%

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US $ Billion

E-Commerce : The Killer Application

1200 1000 800 600 400 200

Exponential growth of ECommerce

1998

1999

2000

20001

2002

2003

E-Commerce Market Perspective Worldwide

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Proposed Solution for PTCL

ATM is presently offering the most high speed cloud services. It is very stable in present multiservice environment. A managed ATM backbone serves a lot of special propose nets. If data is enough, the IP is a good choice. A lot of issues to do with segregating multiple client traffic of PoS. 1/24/2014

Contd.
A secure overlay is more likely possible through ATM. The comparative complex network with higher cost of ATM network gives advantage to PoS solution. But still the Bandwidth on demand, QoS and SLA is more promissing through ATM. WDM is seriously expensive and immature.
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Contd.
Mostly network access points (NAPs) are ATM based in the world. For international connectivity which is expected to be implemented soon , ATM may be a better choice. As the process of implementation of ATM based NAP is in early stages of tendering in PTCL, there is need to thoroughly study the more new technologies.
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Contd.
The NAP should have the compatibility and preferably the capability of offering new PoS services when required. Even WDM (wave division multiplexing) should be studied and its feasibility be prepared till 2002. There is severe need of making a study group consisting of persons from planning, system engineering and experts of data 1/24/2014 networking.

Contd.
They should give good solution in view of the technologies which are still immature and have potential to change the broadband networking. The timely decision with timely implementation is very crucial. Consultants may also be engaged if required. Decreasing cost of packet switching
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Contd.
telephony is of special consideration. The above mentioned threats to PTCL revenue of international calls can be dealt with such a data backbone. Blocking in IP telephony may be short term solution but implementation of above discussed backbone is likely to provide long term solution with better customer care.
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Contd.
PTCL has 0ptical fiber back bones of PDH and SDH. Presently the proposed backbone should run over SDH to avoid unnecessary complication. SEA-ME-WE-3 (the international O/Fiber backbone) is also connected with PTCL backbone and international connectivity thus becomes more easy.
1/24/2014

Contd.
But one of the most important aspect in this regard is the Human Resources Management (HRM), as the ATM based multiservice points involve much technicalities and it would not be easy to manage such a new and difficult technology without proper training and the retention of trained staff after their training and experience.
1/24/2014

Contd.
One of the most important issue is the timely implementation of this backbone which may be upto the beginning of year 2001. Thus adopting such a solution PTCL may face the current challenges of modern wide area networks.

1/24/2014