ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks" Dar es Salaam, 3-5 October 2006
International Telecommunication Union
An introduction to NTT’s NGN and new services in Japan
An introduction to NTTAn introduction to NTT’’s NGN s NGN and new services in Japanand new services in Japan
Naotaka MORITAVice Chairman of SG13, ITU-T
Senior Research Engineer, SupervisorNTT Service Integration Labs.
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks" Dar es Salaam, 3-5 October 2006 2
1. The current status and future direction of Japan’s telecommunications market
2. The worldwide telecommunications market and standardization activities
3. NTT’s plans for the deployment of its NGN
4. Future visions for the NGN
Outline
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks" Dar es Salaam, 3-5 October 2006 3
Japan today in 2005 (as of September 2005)
NOTENUMBERITEMS
06/2006, 0.85 M increase in Q2 of 2006, 84% coverage in 2004
6.3 MOptical
DoCoMo & Vodafone26.5 MW-CDMA
au21.8 Mcdma2000
06/2006, Saturated !!14.5 MDSL
0AB type has started.8.3 MVoIP
06/2006, 40% of householders24.2 MBroadband
03/2006, 6.7 M at peak in 19974.7 MPHS
70% growth last year48.3 M3G
03/2006, 79.8 M have internet access,70% of total population
91.8 MMobile
10 M at peak in 2001 8.0 MISDN
03/200559.6 MFixed lines
03/200550.4 MHouseholders
11/2005, 20% is older than 64.127.8 MPopulation
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks" Dar es Salaam, 3-5 October 2006 4
NTT Communications
NTT West NTT East
• NTT’s PSTN consists of several thousand switches.• Although a then-state-of-art switching system (NS8000) was developed around 10 years ago,the rapid progress in technology since then has resulted in the discontinuation of production of some components used in the system. Currently, we are trying to prolong the lifetime of the switches by re-establishing sources for such components.
• NTT’s PSTN consists of several thousand switches.• Although a then-state-of-art switching system (NS8000) was developed around 10 years ago,the rapid progress in technology since then has resulted in the discontinuation of production of some components used in the system. Currently, we are trying to prolong the lifetime of the switches by re-establishing sources for such components.
NW inside a prefecture
NW between prefectures
Transit switch
Transitswitch
Transitswitch
NW inside a prefecture
Transitswitch
Localswitch
Local switch
Local switch
Localswitch
Other carriersPOI
Other carriersPOI
Several tens
Several hundreds
Several thousands
Inte
grat
ion
degr
ee
Year
1.2µm1.0µm
90 95 00
0.8µm0.6µm
0.5µm0.35µm
0.25µm
5V PS
3.3V PS
1.8, 2.5V PS
Migration to more highly integrated LSI that operates with lower voltage power supply
Discon
tinue
d
05
NS8000(developed around 10 years ago)
Measures taken to prolong the lifetime of NTT’s PSTN facilities
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks" Dar es Salaam, 3-5 October 2006 5
IP telephony is spreading from business users (IP-PBX). Low rates (or free between specific points) offered by ISPs have increased the number of IP phone users in Japan to more than 10 million.NTT already provides an IP phone service “Hikari Phone” using the ordinary telephone numbering plan.
IP telephony is spreading from business users (IP-PBX). Low rates (or free between specific points) offered by ISPs have increased the number of IP phone users in Japan to more than 10 million.NTT already provides an IP phone service “Hikari Phone” using the ordinary telephone numbering plan.
Increase of subscribers to IP phone service
8.305
11.46
5.276
0
2
4
6
8
10
12
14
Num
ber o
f sub
scrib
ers
Million
March 2005 March 2006March 2004
*Source: NTT Communications, Inc.: http://www.ocn.ne.jp/english/personal/option/voip/
1 Free
2 Free
3 8.4 yen/3 min
4
5
6
7Int’l phone network
Affiliated ISP’s IP network
Mobile phone network
OCNOCNAffiliated ISP’s IP phone
PSTN phone
PSTN phone
Mobile phone
Int’l phone
OCN.Phone
8.4 yen/3 min
11.3yen/3 min
(178ISPs)
(13ISPs)
*1: not changed by distance
*1 Non-affiliated ISP’sIP phone
Discount rate
*1
*1
Maturing of IP telephony technology in Japan
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks" Dar es Salaam, 3-5 October 2006 6
PSTN
• Time is ripe for an IP network to replace PSTN.• Migration to the IP network will reduce both capital and
operational expenditure.
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks" Dar es Salaam, 3-5 October 2006 7
●
●
●
●●
•The number of mobile phone subscribers has far exceeded the number of subscribers to fixed-line telephony.
•The number of Internet users continues to increase.
•The number of mobile phone subscribers has far exceeded the number of subscribers to fixed-line telephony.
•The number of Internet users continues to increase.
Sources: Ministry of Internal Affairs and Communications, Consortium for Promotion of Mobile Computing, InfoCom Research Inc., and others.
3/94 3/95 3/96 3/97 3/98 3/99 3/00 3/01 3/02 3/03 3/04 3/05
20
40
60
80
100
Fixed-line-phone users:58.79 million
Internet users: 106.24 million
Broadband users:19.49 million
120
Subs
crib
ers
[mill
ion]
IP phone users:8.3 million
Internet(Fixed line + mobile phone)
Mobile phone users: 91.48 million
Mobile phone
POTS + ISDN
Broadband (Optical, ADSL, etc.)
Paradigm shift of Japan’s telecommunications market
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks" Dar es Salaam, 3-5 October 2006 8
•The revenue from broadband business has been picking up.•It is necessary to grow broadband business into carriers’ main revenue source.•The revenue from broadband business has been picking up.•It is necessary to grow broadband business into carriers’ main revenue source.
Consolidated revenue of NTT Group
49
7
9
46
8
11
45
8
30
40
12
32
40
12
33
41
13
34
38
16
34
36
18
32
0
10
20
30
40
50
60
70
80
90
100
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
(Billion US$)
Revenue frombroadband market
Japan’s broadband market
(Source: EC Research Corp.)
:Business:Consumer
Year
Billion US$
2005
20
10
24
2006
15
2007
19
30
4040
2116
31
12
12
MobileInternet and data communicationFixed-line analog telephone (POTS)
Shift of NTT Group’s main revenue source to broadband services
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks" Dar es Salaam, 3-5 October 2006 9
0
1
2
3
4
Fixed linetelephone service
IP phone IP phone +supplementary
services
IP phone +supplementaryservices (future)
Nor
mal
ized
AR
PU
•There is a shift from low-price IP telephony, exploiting IP technology, to the provision of value-added services, such as video delivery and videophone, exploiting the availability of broadband access.
•The provision of value-added services is increasing ARPU.
•There is a shift from low-price IP telephony, exploiting IP technology, to the provision of value-added services, such as video delivery and videophone, exploiting the availability of broadband access.
•The provision of value-added services is increasing ARPU.
Basic ARPU
Added ARPU
*1
*1: Broadband access charge (including ISP charge)
Increase in ARPU of broadband services
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks" Dar es Salaam, 3-5 October 2006 10
Revenue source of telecom carriers
Carriers need to shift their main revenue source from the telephony service to broadband services.
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks" Dar es Salaam, 3-5 October 2006 11
The Japanese government’s “u-Japan” Plan proposes the full development of broadband infrastructure by installing optical fiber networks nationwide.The Japanese government’s “u-Japan” Plan proposes the full development of broadband infrastructure by installing optical fiber networks nationwide.
Source: Proposed status of broadband networks in 2010 Proposed on Aug. 11, 2006
1. 100% broadband networkThe projected status of a 100% broadband network, through which broadband services are made available to all communities, is as follows:
(1) Overall, a variety of wireline and wireless technologies will be seamlessly linked.
(2) In areas where cost-effective investment is difficult, broadband infrastructure will be built taking both investment efficiency and the needs of communities into account.
(3) Of these varieties of broadband service, super-high-speed broadband access, mostly based on FTTH, will cover 90% of households nationwide.
Promotion of optical access by u-Japan Strategy
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks" Dar es Salaam, 3-5 October 2006 12
Optical access is being promoted so aggressively on the basis of the u-Japan Plan that the yearly increase in the number of FTTH subscribers has already exceeded that of ADSL subscribers. The number of ADSL subscribers will soon cease to grow and gradually begin to fall.
Optical access is being promoted so aggressively on the basis of the u-Japan Plan that the yearly increase in the number of FTTH subscribers has already exceeded that of ADSL subscribers. The number of ADSL subscribers will soon cease to grow and gradually begin to fall.
*Source: Ministry of Internal Affairs and Communications
0
5
10
15
20
ADSL
FTTHCATV
3/2002 3/2003 3/2004 3/2005 3/2006 3/2007 3/2008
Subs
crib
ers
[mill
ions
] Official data* forecast
Dramatic increase in the number of FTTH subscribers in Japan
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks" Dar es Salaam, 3-5 October 2006 13
National policy of Japan
The spreading of optical access is a national policy. There are positive signs that optical access will indeed become widespread.
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks" Dar es Salaam, 3-5 October 2006 14
•Competition has intensified into a price war, bringing down the charges for ADSL and even FTTH dramatically.
•This has resulted in a significant reduction in telecom traffic revenue.
•Competition has intensified into a price war, bringing down the charges for ADSL and even FTTH dramatically.
•This has resulted in a significant reduction in telecom traffic revenue.
3000
7000
9000
13000
2001 2002 2003 2004 2005
△
△
△
△
□
□
□
5000□
□
□□
□
B-flet’s
Flet’s-ADSL
YenChange in monthly charge for broadband access (examples)
Basic type
New Family Type
Condo Type1.5M
1.5M Type
Hyper Family Type
2500 yen
4100 yen
90
30
50
USD
70
Rapid reduction in the charge for broadband access in Japan
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks" Dar es Salaam, 3-5 October 2006 15
•NTT will not only increase traffic revenue but also seek to generate non-traffic revenue.
•NTT already attempts to create new businesses in collaboration with a variety of players outside the telecom industry.
•NTT will not only increase traffic revenue but also seek to generate non-traffic revenue.
•NTT already attempts to create new businesses in collaboration with a variety of players outside the telecom industry.
Examples of Examples of FMCFMC in servicein service““OCNOCN .Phone.Phone”” service series using service series using FOMAFOMA N900iLN900iL
NTT DoCoMo(FOMA)
VoIP infrastructure
Internet
OCN
Mobile connection
ASP groupware
ASP groupware
Cordless IP phone using wireless LAN
Linkage by groupware
Use of OCN content
PC-FOMA videophone, videoconference
Secure access to enterprise network
Linkage with business applications
Branch Head Office Away from office
FOMA®N900iL
FOMA®M1000 PC FOMA®
N900iLFOMA®M1000 PC FOMA®
N900iLFOMA®M1000
Enterprise system
emailBusiness applications
Groupware
Data
...
CAFIS
Highly secure download of electronic value using mobile terminal
Mobile e-commerce
system centerE-money
E-ticket content
Internet
PDA Contactless smart card
Mobile packet access point
Download e-value
Use e-money
as SF Automatic gate at subway
station
Buy drinksusing
e-moneyVending machine
Pass through
admission gate using
e-ticket
Event hallConcert hall
Examples of eExamples of e--commerce in servicescommerce in servicesElectronic money service using mobile terminalsElectronic money service using mobile terminals
Use of electronic value using contactless smart card
$$
SF: Stored Fare
Creation of new business
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks" Dar es Salaam, 3-5 October 2006 16
Status of competition in Japan
Competition has intensified into a price war, making it necessary to create new markets that will generate revenue.
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks" Dar es Salaam, 3-5 October 2006 17
It is urgent for NTT to increase profit by increasing revenue in addition to reducing capital and operational expenditure.It is urgent for NTT to increase profit by increasing revenue in addition to reducing capital and operational expenditure.
Revenue from Broadband
and ubiquitous
services
Revenue fromtelephony
Promote broadband & ubiquitous services like FMC and triple play> Revenue shift from telephony
Establish service delivery platform for new seamless businesses> Expand telecom market
Cost Migrate telephone network to IP> Reduce capital and
operational expenditure
NTT’s actions to deal with the competition
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks" Dar es Salaam, 3-5 October 2006 18
1. The current status and future direction of Japan’s telecommunications market
2. The worldwide telecommunications market and standardization activities
3. NTT’s plans for the deployment of its NGN
4. Future visions for the NGN
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks" Dar es Salaam, 3-5 October 2006 19
Technologies are being studied, with carriers presenting requirements and vendors proposing solutions. Standards organizations provide the fora for such discussions.Technologies are being studied, with carriers presenting requirements and vendors proposing solutions. Standards organizations provide the fora for such discussions.
ITUITU--T, ETSI/TISPAN, ATIS, IETF, 3GPP, OMA, MSF, etc.T, ETSI/TISPAN, ATIS, IETF, 3GPP, OMA, MSF, etc.
ArchitectureProtocol
SNI Testing of interoperability
Present requirements for network components by defining Network Architecture
Present requirements for network components by defining Network Architecture
Discuss Network Architecture with carriers and propose solutions to meet the requirements.
Discuss Network Architecture with carriers and propose solutions to meet the requirements.
Requirements Solutions
CarriersCarriers VendorsVendors
Roles of carriers and vendors and their collaboration
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks" Dar es Salaam, 3-5 October 2006 20
Telecom carriers should meet the requirements of the new age by building the NGN
The external environment of carriers worldwide has changed from one where the telephone network was the main national infrastructure. All carriers are striving to face this challenge by restructuring and transforming themselves into carriers fit for the new age.
The external environment of carriers worldwide has changed from one where the telephone network was the main national infrastructure. All carriers are striving to face this challenge by restructuring and transforming themselves into carriers fit for the new age.
Provide FMC and triple play services:to meet customer’s demand,extending mobile and Internet features.
Reduce capital and operational expenditure:by leveraging IP-technology to achieve a competitive price
Collaborate with other business areas:e-commerce, banking, physical distribution, home appliances, etc.
FMC: Fixed-Mobile Convergence
Be versatile as a service providing company
Save cost as a facility operating company
Technical innovation Changes in
lifestyle
Changes in telecom policy
Competition
Restructuring
National infrastructure
based on POTS
CarriersCarriers
Future direction sought by all carriers
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks" Dar es Salaam, 3-5 October 2006 21
1. The current status and future direction of Japan’s telecommunications market
2. The worldwide telecommunications market and standardization activities
3. NTT’s plans for the deployment of its NGN
4. Future visions for the NGN
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks" Dar es Salaam, 3-5 October 2006 22
Strengthen competitive edge and financial base, and contribute to achievement of u-Japan
Strengthen competitive edge and financial base, and contribute to achievement of u-Japan
Smooth migration from existing fixed-line to IPtelephony, and from copper to optical access
Develop and spreadbroadband and ubiquitous services that allow fixed-mobile convergence (FMC)
Expand business opportunities by exploiting broadband and ubiquitous services
xSP:Provide new business opportunities
Open network that allows collaboration with other carriers and xSPs
Build NGN that is of high quality, flexible and secureBuild NGN that is of high quality, flexible and secure
Approach to NGN
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks" Dar es Salaam, 3-5 October 2006 23
•Migrate 30 million customers to optical fiber access and next-generation network services
•Increase annual sales of solutions and non-traffic businesses by US$ 5 billion•Maintain the same level of equipment investment for fixed-line communications operations (cumulative total, 2006-2010: US$ 50 billion)
•Reduce annual costs for PSTN operation by US$ 8 billion.
•Migrate 30 million customers to optical fiber access and next-generation network services
•Increase annual sales of solutions and non-traffic businesses by US$ 5 billion•Maintain the same level of equipment investment for fixed-line communications operations (cumulative total, 2006-2010: US$ 50 billion)
•Reduce annual costs for PSTN operation by US$ 8 billion.
Sales of solutions and non-traffic businesses using the next-generation network
Equipment investment for fixed communications operations
Costs for the fixed-line communications business
Sale
s in
crea
se
Present 2010
Solutions
Non-traffic businesses
Increase annual sales by US$ 5 billion
by 2010
Inve
stm
ent i
n eq
uipm
ent
2002 2003 2004
Billion US$
89
9.4 About equal to the present level
Optical fiber access/Next-generation network
Existing fixed-line telephone network
2010
Cumulative total:US$ 50 billion
Cos
ts fo
r fix
ed-li
ne
com
mun
icat
ions
bus
ines
s
Present 2010
Reduce annual costs by US$ 8 billion
by 2010
Major targets of NTT’s NGN by 2010
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks" Dar es Salaam, 3-5 October 2006 24
NGNNGN
Community,e-commerce
Lifestyle support,home appliance
manufacture
Broadcast, content providers
SNI
ASPs and various service players
Safe, secure, and convenientnetwork equipped with features
of both the existing fixed-line telephone and IP networks
Disclose Service Node Interface (SNI)
to enable various service
players to provide a wide
array of applications on
the NGN
SDP: Service Delivery PlatformIMS: IP Multimedia Subsystem
IMSIMSSDPSDPIP-based network enabling
provision of seamless fixed and mobile services
Office, hotspot, etc.
Home network
Basic concept of NTT’s NGN
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks" Dar es Salaam, 3-5 October 2006 25
Fiscal year
Steps in introducingthe NGN
Core network
Service controlfunctions
Servicedevelopment
2006 2007 2008–
Field trialsField trials
ConstructConstructaccess networksaccess networks Seamless integration Seamless integration
with mobile networkwith mobile network
Deploy service control functionsDeploy service control functions
Trial servicesTrial services<For limited<For limitedregions and users>regions and users>
STEP 1
STEP 2
STEP 3
Provide optical access to 30M Provide optical access to 30M users (End of fiscal 2010)users (End of fiscal 2010)
Construct Construct transit networktransit network
•Broadband Internet access•IP telephony•Multicast transmission for video distribution•Bi-directional video (data) communication•Ethernet services, etc.
FullFull--scale development scale development of nextof next--generation generation servicesservices
IMS deployment(conforming to ITU standards)
-deploy core nodes-deploy optical wavelength
transmission equipmentdeploy edge nodes
Roadmap to building NTT’s NGN
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks" Dar es Salaam, 3-5 October 2006 26
•Trial period: One year from Dec. 2006•Areas: Tokyo and its surroundings and Osaka
Base station
End-to-end quality controlSecurity
functions
IP multicast function
FMC
Internet access
IP telephony
NGN
Open connectivity functions
Various services through tie-ups with IT-home appliance manufacturers and ASPs
Video distribution
Overview of Field Trials of NTT’s NGN
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks" Dar es Salaam, 3-5 October 2006 27
1. The current status and future direction of Japan’s telecommunications market
2. The worldwide telecommunications market and standardization activities
3. NTT’s plans for the deployment of its NGN
4. Future visions for the NGN
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks" Dar es Salaam, 3-5 October 2006 28
- Provide broadband and IP telephony services at attractive prices- Reduce capital and operational expenditure
- Provide seamless services, such as triple play and FMC services- Create non-traffic services
- Disclose Service Node Interfaces- Provide the Service Delivery Platform, to promote collaboration.
Create new markets by collaborating with various service players on the network
Deploy new broadband services
Upgrade the fixed-line telephone network to an IP telephone network by applying the latest broadband IP technology
New activities for the NGN
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks" Dar es Salaam, 3-5 October 2006 29
Conclusion
As one of the first carriers in the world
to implement an NGN,
NTT will be happy to share with other
countries our experiences and
expertise of NGN trials and deployment.