Transcript Industry & Network Transformation Robert F. Balsamo Marketing Director

Industry & Network
Transformation
Robert F. Balsamo
Marketing Director
Calix
Petaluma, CA
[email protected]
Calix Confidential & Proprietary
IP: The Enabler of Dramatic Change
Profound industry ramifications
Elimination of service boundaries
Elimination of network boundaries
ANY SERVICE
New opportunities
Expand into incremental services
Create new business models
IP
PACKET
New threats
New competitors
Changing regulations
ANY MEDIA
Changing revenue models
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A Necessary Services Transformation
Beyond voice, video, and data…
The integration of INFORMATION, COMMUNICATION, &
ENTERTAINMENT (ICE) services at the consumer interface is
the next step…
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Impending Business Transformation
Service diversification
Interactive ICE products
Integrated value-added
services across products
portfolio
Differentiation that leverages
core competencies
New businesses
Enables high margin direct
marketing / advertising
Vehicle for access and
commerce to subscribers
Leverage position as the
gateway to subscribers
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Impending Business Transformation
Repositioning for increased
valuation
MSO’s have materially higher
“per-subscriber” market
valuations
~ 70% of MSO valuation based
on digital services
ICE providers should have a
valuation advantage (100%
digital)
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The Success Equation:
The Most Services at the Lowest Initial/Ongoing Cost
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Overarching Industry Transformation
Service transformation
Expand beyond voice and data
Integrated ICE services
Business transformation
Expand business orientation beyond communications
New lines of business, new paths to profits
Network transformation
Support compelling new services
 Increase competitiveness of basic broadband access
 Expand into innovative ICE services
Accelerate service innovation to maximize revenues
Improve operational efficiency to maximize profit
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Simplifying Network
Transformation
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Dimensions of Network Transformation
Physical network transformation
From ubiquitous narrowband to ubiquitous broadband
FTTP or DSL over reduced CSAs to support broadband requirements
Logical network transformation
From circuit to multimedia over packet
 POTS to VOIP is the next critical service conversion
Key to operational efficiency and services integration
Operational network transformation
IP based applications control and services integration
 Fixed-mobile convergence is driving an integration framework
Key to compelling services, accelerated services introduction and
operational efficiency
Balance commitment to legacy considerations
Develop a Strategic Transformation Vision… Simplicity & Savings!
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“Physical” Transformation Drivers
Changing services demand increased broadband capacity
IPTV – increased video stream counts, HDTV
HSD – Video and music downloads, gaming, video conferencing…
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Physical Network Transformation
Ubiquitous Broadband
Push fiber deeper to support increased capacity and services
FTTP – where economically viable
DSL with reduced loop length CSA designs, using FTTN overlay
CO, RT and FTTN (as close to sub as business case allows)
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Overlay DSL: Increased
Cost & Complexity
More cross connect
upgrades
Recurring truck rolls
Maintain parallel
networks
Lacks POTS to
VOIP plan
Avoids cross
connect upgrades
Eliminates truck
rolls
Retirement of legacy
POTS
Every line VOIP
configurable
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Physical Network Transformation
POTS Termination – Network Simplicity
Combo DSL and POTS enables unified services, remote node
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POTS to VOIP - Network Implications
VOIP is the final stage of circuit to packet transformation
Softswitch migration requires media gateway POTS-VOIP conversion
Enables Class 5 switch collapse, preserves lifeline voice infrastructure
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Physical Network Transformation
Network VOIP: Lower Cost, Lifeline
Complete the transformation of ICE services to packet
Simplified access network, Class 5 CO collapse
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Operational Network Transformation
Application Level Services Integration
IMS: founded in wireless, foundation for multimedia IP services
and applications management
Enabling a common operations model for fully integrated ICE services
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Looking Beyond DSL…
A converged model: All services enabled
 POTS, HIS, VoIP ready, IPTV ready
 Copper and fiber access optimized for all broadband
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Complete Network Transformation
All Packet, All Fiber – With Options
Phased or direct transformation flexibility
Freedom to manage investments and technology evolution
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Network Transformation Observations
Physical network transformation
FTTP where justifiable
Reduced CSAs with VDSL2 for non-FTTP markets
 CO, RT and nodal solutions – access continuum
Logical network transformation (VOIP)
Converged POTS & DSL cards – with VOIP conversion offer lowest
cost approach to both IPTV and VOIP
 Further simplifies the network
Operational network transformation
Seemingly independent wireless initiatives laying a foundation for
converged IP services management
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The Book On… Network Transformation
Thought leadership
Insight and perspective on key
emerging
market trends and opportunities
Network Transformation
The Book On Video
Solutions, not just products
Register for your copy at
http://book.calix.com
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The Power of Simplicity
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