1 © 2004 Cisco Systems, Inc. All rights reserved. IP NGN_DEC2004 CISCO AND THE SERVICE PROVIDER IP NGN JOURNEY— ENABLING THE TRANSITION FROM BASIC HIGHWAY TO VALUE-ADD, PERSONALIZED TOLLWAY David R. Evert Jun 22, 2005

222 © 2004 Cisco Systems, Inc. All rights reserved. IP NGN_DEC2004 State of the Industry Economic Drivers Prevailing; For Some, Survival at Stake HYPER-COMPETITION INCREASING Overlap of players increasing, not number of customers INCOME STATEMENTS ‘UNBALANCED’ Traditional revenue streams flat or down, not Opex BROADBAND PROMISE UNDERREALIZED Growth in demand for bandwidth, not yielding growth in revenue CUSTOMER EXPECTATIONS SOARING Want to pay less, not get less

333 © 2004 Cisco Systems, Inc. All rights reserved. IP NGN_DEC2004 Cisco Service Provider Vision CONSUMER SMALL/MEDIUM BUSINESS SP WHOLESALE ENTERPRISE VPNsINTERNETCONTENT VOICE & VIDEO MOBILITYTRANSPORT IP NEXT GENERATION NETWORK CONNECTING CUSTOMERS WITH SERVICES, SERVICES WITH NETWORKS, AND NETWORKS WITH EACH OTHER

444 © 2004 Cisco Systems, Inc. All rights reserved. IP NGN_DEC2004 IP-Based Next-Generation Networking Connecting Services with Networks and Networks with Each Other Beyond Voice, ALL SERVICES Beyond Voice, ALL SERVICES Beyond a Trend, A BUSINESS IMPERATIVE Beyond a Trend, A BUSINESS IMPERATIVE Beyond Core, NETWORK-WIDE Beyond Core, NETWORK-WIDE Beyond a Destination, A JOURNEY Beyond a Destination, A JOURNEY Beyond Access, BANDWIDTH THROUGHOUT Beyond Access, BANDWIDTH THROUGHOUT Beyond “For Just One Network”, TO CREATE ONE NETWORK Beyond “For Just One Network”, TO CREATE ONE NETWORK 444 © 2004 Cisco Systems, Inc. All rights reserved. IP NGN_DEC2004

555 © 2004 Cisco Systems, Inc. All rights reserved. IP NGN_DEC2004 Mobility of the Cellular Network Ubiquity/Reliability of the PSTN Bandwidth of an Optical Network Security of a Private Network Security of a Private Network Flexibility of Ethernet Content Richness of the Internet Video Delivery of Cable/Television Characteristics of an Ideal Network Fusing the Best of Today’s Networks and More IP NEXT GENERATION NETWORK 5 © 2004 Cisco Systems, Inc. All rights reserved. IP NGN_DEC2004

666 © 2004 Cisco Systems, Inc. All rights reserved. IP NGN_DEC2004 IP NGN Journey Requires Multiple Layers of Convergence APPLICATION CONVERGENCE SERVICE CONVERGENCE NETWORK CONVERGENCE MOBILE FR/ATM PSTN BROADBAND SERVICES OPTICAL HIGH-SPEED INTERNET Integration of New Innovative IP D/V/V Services over Broadband for Increased Revenue Service Continuity across Access for Customer Loyalty And Stickiness Eliminate Layers in the Network for Increased OPEX/CAPEX Efficiencies IP Next Generation Network 6 © 2004 Cisco Systems, Inc. All rights reserved. IP NGN_DEC2004

777 © 2004 Cisco Systems, Inc. All rights reserved. IP NGN_DEC2004 Highway to Value-Add, Personalized Tollway IP NGN Architecture Analogy APPLICATION LAYER SERVICE CONTROL LAYER OPERATIONAL LAYER INTELLIGENT TRANSPORTATION SECURE NETWORK LAYER HIGHWAYS RECREATION RESIDENTIAL BUSINESS TRAFFIC CONTROL Personalization Value-Add Means to Bill For End Customers: Converting Transport to Experiences For Service Providers: Converting Costs into Revenue For End Customers: Converting Transport to Experiences For Service Providers: Converting Costs into Revenue

888 © 2004 Cisco Systems, Inc. All rights reserved. IP NGN_DEC2004 INTELLIGENT NETWORKING Cisco IP NGN Architecture Achieving a Whole Greater Than the Sum of the Parts APPLICATION LAYER SERVICE CONTROL LAYER OPERATIONAL LAYER Open Framework for Enabling “Triple Play On The Move” (Data, Voice, Video, Mobility) Open Framework for Enabling “Triple Play On The Move” (Data, Voice, Video, Mobility) Service Exchange Intelligent Edge Intelligent Edge Customer Element Customer Element Multiservice Core Multiservice Core Access / Aggregation Transport SECURE NETWORK LAYER VoD / HDTV GAMING STORAGE COMM WEB SERVICES MOBILE APPS IP CONTACT CENTER

999 © 2004 Cisco Systems, Inc. All rights reserved. IP NGN_DEC2004 INTELLIGENT NETWORKING Application Convergence APPLICATION LAYER SERVICE CONTROL LAYER Open Framework for Enabling Triple Play On The Move (Data, Voice, Video, Mobility) Open Framework for Enabling Triple Play On The Move (Data, Voice, Video, Mobility) Service Exchange Intelligent Edge Intelligent Edge Customer Element Customer Element Multiservice Core Multiservice Core Access / Aggregation Transport SECURE NETWORK LAYER VoD / HDTV GAMING STORAGE COMM WEB SERVICES MOBILE APPS IP CONTACT CENTER

10 © 2004 Cisco Systems, Inc. All rights reserved. IP NGN_DEC2004 Device Functionality is Blurring... For Consumers and Businesses: Any Service, Any Device AT WORK, AT HOME, ON THE ROAD Video Conferencing Digital TV / VOD Digital TV / VOD VoIP High-Speed Internet /VPN PDA / Text / Instant Messaging Custom Ring Tones / MP3 Player Push-to-Talk / Intercom Push-to-Talk / Intercom VOICE DATA VIDEO

11 © 2004 Cisco Systems, Inc. All rights reserved. IP NGN_DEC2004 Creating a Multitude of New Service Opportunities… Example: Residential Broadband Services Integrated Networks, Content, and Entertainment Services to Move Up the Value Chain with the Customer Integrated Networks, Content, and Entertainment Services to Move Up the Value Chain with the Customer TELEWORKER/ HOME BUSINESS ~$70/MO TELEWORKER/ HOME BUSINESS ~$70/MO LOCAL AND LONG DISTANCE VOICE ~$40/MO LOCAL AND LONG DISTANCE VOICE ~$40/MO HOME NET ~$10/MO VIDEO AND xVOD ~$50/MO DIGITAL MUSIC ~$10/MO DIGITAL MUSIC ~$10/MO WIRELESS SECURITY ~$30/MO WIRELESS SECURITY ~$30/MO RESIDENTIAL BROADBAND ACCESS ~$30/MO RESIDENTIAL BROADBAND ACCESS ~$30/MO NETPVR ~$10/MO NETPVR ~$10/MO GAMING ~$7/MO

12 © 2004 Cisco Systems, Inc. All rights reserved. IP NGN_DEC2004 INTELLIGENT NETWORKING Service Convergence APPLICATION LAYER SERVICE CONTROL LAYER Open Framework for Enabling Triple Play On The Move (Data, Voice, Video, Mobility) Open Framework for Enabling Triple Play On The Move (Data, Voice, Video, Mobility) Service Exchange Intelligent Edge Intelligent Edge Customer Element Customer Element Multiservice Core Multiservice Core Access / Aggregation Transport SECURE NETWORK LAYER VoD / HDTV GAMING STORAGE COMM WEB SERVICES MOBILE APPS IP CONTACT CENTER

13 © 2004 Cisco Systems, Inc. All rights reserved. IP NGN_DEC2004 Service Exchange Framework Multimedia Service Control for Wireline/Wireless Convergence MOBILITY MANAGEMENT Device Roaming Service Mobility User Mobility MULTIDIMENSIONAL IDENTITY User / Device ID Location / Presence Service Registration Audit / Logging Assured Authentication DYNAMIC SESSION MANAGEMENT Call Control / Session Border Control Rich-Media Control Diff Bandwidth & QoS per Session Accounting / Billing POLICY MANAGEMENT Subscriber Policy Application/Chaining Per-Sub Service Service Invocation Service Exchange 13 © 2004 Cisco Systems, Inc. All rights reserved. IP NGN_DEC2004

14 © 2004 Cisco Systems, Inc. All rights reserved. IP NGN_DEC2004 Service Exchange Framework Multimedia Service Control for Wireline/Wireless Convergence MOBILITY MANAGEMENT Device Roaming Service Mobility User Mobility MULTIDIMENSIONAL IDENTITY User / Device ID Location / Presence Service Registration Audit / Logging Assured Authentication DYNAMIC SESSION MANAGEMENT Call Control / Session Border Controller Rich-Media Control Diff Bandwidth & QoS per Session Accounting / Billing POLICY MANAGEMENT Subscriber Policy Application/Chaining Per-Sub Service Service Invocation WHO? Who is the user? Devices Profile Location Presence Who is the user? Devices Profile Location Presence WHAT? What can the user do? Within what timeframe To what extent Under what rules What can the user do? Within what timeframe To what extent Under what rules HOW? How can I dynamically control resources? Interwork and provide rich media control Monitor and charge on a per service/per user basis Enable application awareness How can I dynamically control resources? Interwork and provide rich media control Monitor and charge on a per service/per user basis Enable application awareness WHERE? Where can the user roam? Track/recognize the devices across carriers Maintain the session across multiple networks Offer all services in all locations Where can the user roam? Track/recognize the devices across carriers Maintain the session across multiple networks Offer all services in all locations Service Exchange 14 © 2004 Cisco Systems, Inc. All rights reserved. IP NGN_DEC2004

15 © 2004 Cisco Systems, Inc. All rights reserved. IP NGN_DEC2004 INTELLIGENT NETWORKING Network Convergence APPLICATION LAYER SERVICE CONTROL LAYER Open Framework for Enabling Triple Play On The Move (Data, Voice, Video, Mobility) Open Framework for Enabling Triple Play On The Move (Data, Voice, Video, Mobility) Service Exchange Intelligent Edge Intelligent Edge Customer Element Customer Element Multiservice Core Multiservice Core Access / Aggregation Transport SECURE NETWORK LAYER VoD / HDTV GAMING STORAGE COMM WEB SERVICES MOBILE APPS IP CONTACT CENTER 15 © 2004 Cisco Systems, Inc. All rights reserved. IP NGN_DEC2004

16 © 2004 Cisco Systems, Inc. All rights reserved. IP NGN_DEC2004 Access-Agnostic Convergence PSTN Internet / VPN TV / Video / ContentData Center Inter SP Working CUSTOMER ELEMENT CUSTOMER ELEMENT ACCESS / AGGREGATION INTELLIGENT IP / MPLS EDGE MULTISERVICE IP / MPLS CORE HOME NETWORKING HOT SPOT MOBILE Linksys ENTERPRISE/ BRANCH Cisco ISR SMALL/MEDIUM BUSINESS Hosted / Managed ISR / IPT Aironet UBR Cisco Cable/DSL Cisco ONS 153xx MSPP Cisco Catalyst & 7600 Metro Ethernet IP RAN / STP Wireless MGX 8800 AS5XXX FR / ATM / Media Gateway TDM / Ethernet Cisco ONS MSTP / MSPP Cisco ONS MSTP / MSPP Cisco Cisco Cisco 7x00 Cisco ONS MSPP Cisco ONS MSPP Cisco CRS-1 Inter- connect Transport Multiple Emerging Technologies Convergence

17 © 2004 Cisco Systems, Inc. All rights reserved. IP NGN_DEC2004 Cisco IP NGN Technology Spanning Secure Network Layer PSTN Internet / VPN TV / Video / ContentData Center Inter SP Working CUSTOMER ELEMENT CUSTOMER ELEMENT ACCESS / AGGREGATION INTELLIGENT IP / MPLS EDGE MULTISERVICE IP / MPLS CORE HOME NETWORKING HOT SPOT MOBILE Linksys ENTERPRISE/ BRANCH Cisco ISR SMALL/MEDIUM BUSINESS Hosted / Managed ISR / IPT Aironet UBR Cisco Cable/DSL Cisco ONS 153xx MSPP Cisco Catalyst & 7600 Metro Ethernet IP RAN / STP Wireless MGX 8800 AS5XXX FR / ATM / Media Gateway TDM / Ethernet Cisco ONS MSTP / MSPP Cisco ONS MSTP / MSPP Cisco Cisco Cisco 7x00 Cisco ONS MSPP Cisco ONS MSPP Cisco CRS-1 Inter- connect Transport QoS SECURITY QoS SECURITY

18 © 2004 Cisco Systems, Inc. All rights reserved. IP NGN_DEC2004 Cisco IP NGN Momentum Across Segments, Across Continents The All Digital NGN for Cable The All Digital NGN for Cable Core for IP NGN Enabling 3G Services PSTN Migration to IP NGN Broadband for Triple Play Largest MPLS/Metro E Deployment Biggest Broadband Metro E for Triple Play MS Edge+Core for IP NGN And more… Over 250 MPLS VPN networks in production Over 4 Million IP phones installed: Replacing 6000 TDM phones every day Over 14 Million VoIP gateway ports Over 10 Million cable VoD subscribers supported in U.S. alone Over 250 MPLS VPN networks in production Over 4 Million IP phones installed: Replacing 6000 TDM phones every day Over 14 Million VoIP gateway ports Over 10 Million cable VoD subscribers supported in U.S. alone

19 © 2004 Cisco Systems, Inc. All rights reserved. IP NGN_DEC2004 SPs are Driving Towards… EFFICIENCIES OPEX CAPEX PROFITS EFFICIENCIES OPEX CAPEX PROFITS SERVICES DIFFERENTIATION LOYALTY REVENUE SERVICES DIFFERENTIATION LOYALTY REVENUE IP INTELLIGENCE FLEXIBILITY ADAPTABILITY IP INTELLIGENCE FLEXIBILITY ADAPTABILITY CONTROL SERVICE NETWORK BUSINESS CONTROL SERVICE NETWORK BUSINESS

20 © 2004 Cisco Systems, Inc. All rights reserved. IP NGN_DEC2004