Tom VandeWater Regional Sales Director (510) Next Generation Switching Explored

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

Two non-connected “islands” Last mile is still analog/circuit (POTS, PRI, TDM) End-to-end connectivity requires Packet Class 5 switch IP TDM Class 4 Softswitch SS7/TDM POTS/TDM Legacy Class 5 IP PBX Enterprise IP LAN Last Mile SS7/TDM Backbone Packet Backbone The Result……

IP IAD Next Gen Class 5 IP Signaling & Media Gateways IP Enables end-to-end IP PSTN becomes legacy network Enterprise IP LAN Broadband Last Mile Packet Backbone IP PSTN Class 4 Softswitch Next Gen Class 5

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, voic , …) –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 , voic , 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

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

Case Study – New Knoxville: Voice Over Cable eMTA CMTS Gig-E IP / Cable PSTN SS7 TDM VP3500 Next Generation Class 5 Switch

Case Study – New Knoxville: Voice Over DSL/ATM DSLAM OC-3 IAD PSTN SS7 TDM DSL T1 ATM Switch VP3500 Next Generation Class 5 Switch

Case Study – New Knoxville: Total Network eMTA CMTS DLC DSLAM IAD POTS IP / Cable T1 DSL PSTN SS7 TDM ATM Switch OC-3 Gig-E GR-303 VP3500 Next Generation Class 5 Switch

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