Next Generation Switching Explored

Tom VandeWater Regional Sales Director (510) 748-8239

Agenda

• Introductions • Where the industry is today • Defining “Next Generation Switching” • Next Generation Switching – Elements – Requirements • Emerging services • Case study and conclusion

Introductions - MetaSwitch

• Tom VandeWater – Regional Sales Director – Based in Alameda, California • MetaSwitch – a division of Data Connection – Leading independent provider of networking and IP applications technology • Customers include SBC, Verizon, BT, Cisco, Lucent, Nortel, … – Stability • Consistently profitable since 1981 • Privately-owned and self-funded • 275 employees in US and UK • MetaSwitch VP3500 Next Generation Class 5 Switch – Proven, deployed solution for legacy and broadband voice

IP Telephony – The First Wave

• Offload of long-distance traffic on IP backbones – Packet-based Class 4 switches – Relatively simple, proven, reliable technology – “Infinite bandwidth” backbone solves quality issues – Business justification in toll bypass • Enterprise voice networks – IP phones / IP Centrex – Drivers • Reduced enterprise management costs • Advanced features

The Result……

• Two non-connected “islands” • Last mile is still analog/circuit (POTS, PRI, TDM) • End-to-end connectivity requires Packet Class 5 switch

IP IP PBX POTS/TDM Legacy Class 5 TDM SS7/TDM Class 4 Softswitch IP Enterprise IP LAN Last Mile SS7/TDM Backbone Packet Backbone

Next Gen Class 5

• Enables end-to-end IP

PSTN

• PSTN becomes legacy network

Signaling & Media Gateways IP IP IP IP Class 4 Softswitch IP IAD Next Gen Class 5 Enterprise IP LAN Broadband Last Mile Packet Backbone IP

Next Gen Class 5 Switches Today

• Service providers announcing true Class 5 replacements • Growth in VoIP over Cable • Successful CLECs deploying next-gen switches to provide a competitive advantage • Service providers bundling voice and data services with next-gen switches

What Is a Next Generation Switch?

• Next generation ARCHITECTURE – Broadband interfaces – ATM and/or IP – “Softswitch” or “Hard switch” models • Distributed Softswitch + Media Gateway for larger networks • One-box “hard switch” easier to deploy for smaller carriers • Next generation SERVICES – Enabled by convergence of Web, Internet and Voice technologies – Advanced voice services to IP phones – Integration of web for phone control, messaging, conferencing

What Is a Next Generation Switch?

• Migration from today’s network – PSTN levels of reliability – software is now critical component – Traditional services (CLASS, Centrex, 1-800, voicemail, …) – Legacy TDM interfaces (SS7, MF, GR-303, T1, …) – Ability to “cap and grow” (SS7 F-links, LNP, tools, …) • Next generation management – Point-and-click GUIs replace hard-to-use command line interface • Let’s identify the next-gen switching elements….

• • •

Next Gen Class 5 Switch Elements (1)

Call Agent – Maintains call state and implements call service logic, e.g., for CLASS services – Often referred to as the “softswitch” Media Server – Provides media services under CA control (e.g., MGCP) e.g., announcements, mixing, transcoding, tone detection/generation, IVR, fax, voice activity detection Application Server – Provides service logic for applications such as voice mail and conferencing – Uses Call Agent to control resources on media gateways

• • •

Next Gen Class 5 Switch Elements (2)

Signaling Gateway – Interface between IP and SS7 networks – Has protocol interface into Call Agent (e.g., SS7 over IP) Trunk Gateway – Transcodes packet voice to/from TDM network – Device controlled by Call Agent (e.g., via MGCP / H.248) Packet Access Gateway – Often omitted – but key distinguishing feature of carrier-class VoIP solutions – Main function is to protect core network elements from misuse (e.g., specifying “voice QoS” on data packets) – Also provides for lawful interception, 3-way calling, etc.

• •

Requirements For A Next Gen Class 5

Provide equivalent function to existing switches – Reliability – Subscriber services – Regulatory and carrier requirements – Interoperation with legacy POTS/TDM world – Back-office integration Enable seamless migration to “New world” paradigm – Service creation environment – Open protocols for multi-vendor interworking – Distributed architecture – Packet interfaces (VoIP, VoATM) • Access – Voice over Broadband • Backbone trunking

Next Generation Services

• IP Centrex – Managed IP phone service for small businesses – Rapid expected take-up (see chart) • Web Conferencing – Whiteboarding, collaboration, online presentations – Significant enhancement to voice call – Market: $288M (2001)  $1.3bn (2005) * • Unified Messaging – Combine email, voicemail, fax in one inbox – Market: $1.15bn (2001)  $3bn (2005) * • Web self-care – Enable subscribers to configure their own services – “Find-me / follow-me” – easy-select call forwarding (*) source: Telecommunications Industry Association 2003 Market Review

Example – Subscriber Self-Care

Example – Subscriber Self-Care

• Ease of use – Configure lists of numbers (e.g., for selective call forwarding) on a Web interface vs. laborious DTMF menus – Increased customer satisfaction • Increased revenue and reduced costs – Lower the threshold for activating new services – Fewer customer support operators to manually provision services • Branding and loyalty – Integration with existing Web portal and other Web-based services – Requires secure, flexible Web applications architecture • Separate user interface logic (and look/feel) from the switch

Case Study – New Knoxville Telephone

• Founded 1905 • Small independent service provider in rural Ohio – Incumbent telco (New Knoxville Telephone) – Cable TV division (NKTELCO Cable) – CLEC division (GoldStar Communications) • Seeking to – Replace existing end-of-life Class 5 switch – Rationalize and upgrade network – Expand business and ward off competitors – Exploit cable and DSL networks for out-of-region expansion –

“After evaluating a number of Class 5 'alternatives', we identified the MetaSwitch VP3500 as the only true Next Generation Class 5 Switch capable of supporting our legacy POTS customers while leveraging the VoIP potential of our installed cable network.”

– Preston Meyer, General Manager

Case Study – New Knoxville: Steps to Next Gen

• Using Next Gen Class 5 switch to thwart competition and increase revenues – More cost-effective service delivery – Out of region expansion • Exploit existing cable TV network • Use range of available broadband technologies in other areas • Service offerings: – VoIP over cable – VoATM over T1 / ADSL – GR-303 for TDM voice • Combining TDM and Broadband Voice with a hybrid MetaSwitch to target new services –

“We were impressed by how easy it was to install the switch and by MetaSwitch's exemplary customer support .”

– Preston Meyer, General Manager

Case Study – New Knoxville: Analog POTS

PSTN SS7 TDM GR-303 VP3500 Next Generation Class 5 Switch DLC

Case Study – New Knoxville: Voice Over Cable

PSTN SS7 TDM VP3500 Next Generation Class 5 Switch CMTS IP / Cable eMTA

Case Study – New Knoxville: Voice Over DSL/ATM

PSTN SS7 TDM VP3500 Next Generation Class 5 Switch ATM Switch T1 IAD DSLAM DSL IAD

Case Study – New Knoxville: Total Network

IP / Cable CMTS eMTA PSTN SS7 TDM VP3500 Next Generation Class 5 Switch ATM Switch DLC POTS T1 DSL DSLAM IAD IAD

Conclusion

• “Next Generation” Switches vary in focus, e.g.

– Replicate legacy switch in smaller form-factor – Add voice switching function to edge router – Softswitch application with third-party media gateways • Key characteristics to look for – Traditional services and interfaces – Next generation architecture – Next generation services – Smooth migration from legacy to next generation network • The technology is real and proven