1. HUAWEI TECHNOLOGIES CO., LTD. HUAWEI TECHNOLOGIES Co., Ltd. www.huawei.com Page 1 Business visions behind NGSON Li Li (Thomas Lee) Vice Director, Industry Standards Department Email: thomaslee@huawei.comthomaslee@huawei.com May 15, 2009, Geneva, Switzerland IEEE NGSON & ITU-T SG13 Joint Workshop

2. Business visions behind NGSON Page 2 Business Dilemmas Visions & Solutions Key technologies Conclusion Table of Contents

3. Business visions behind NGSON Page 3 Problem of network operators More and more enriched services and content on the Telecom networks are forcing the bandwidth requirements to grow exponentially, the cost of operators to great increase. More and more enriched services and content on the Telecom networks are forcing the bandwidth requirements to grow exponentially, the cost of operators to great increase. Even though more subscribers attracted by enriched services, the annually decreasing ARPU is causing operators margins to erode. Even though more subscribers attracted by enriched services, the annually decreasing ARPU is causing operators margins to erode.

4. Business visions behind NGSON Page 4 Business dilemmas behind Limited services, not attractive at all Too stiff, not adaptive Telecom services are stable Becoming spam, but still hard to find out critical services in time Services and Advertisements are everywhere Its dangerous if you are exposed Sometimes QoS is a problem I love Internet !!! End users How about mission critical business? Internet portal becomes necessity Vertical industries & companies All users are behind masks, hard to locate target customers proactively Internet services are popular No such thing called ARPUMajor income from advertisement Service & content providers Price competition will come soonData services increasing dramatically Challenged by VoIP with zero priceVoice is still major income source Minor income with heavy burdenInternet services – good QoE ARPU decreased, revenue erodedBandwidth requirement exploding Network operators

5. Business visions behind NGSON Page 5 Business Dilemmas Visions & Solutions Key technologies Conclusion Table of Contents

6. Business visions behind NGSON Page 6 Price competition will come soon Challenged by VoIP with zero price Minor income with heavy burden ARPU decreased, revenue eroded Visions End users Vertical industries & companies Service & content providers Network operators All users are behind masks, hard to locate target customers proactively No such thing called ARPU Its dangerous if you are exposed Sometimes QoS is a problem How about mission critical business? Limited services, not attractive at all Too stiff, not adaptive Becoming spam, but still hard to find out critical services in time Vision-1 Increasing customer Royalty, mitigation of price competition; Optimizing resources Vision-2 High accuracy advertisements: AdvertiService Vision-3 Telecom level support Vision-4 Customer-centric service provision

7. Business visions behind NGSON Page 7 Solution-4 User, service, network & device context aware Solution-3 QoS/bandwidth/latency guaranteed & privacy protected on valuable services Solution-2 Customer-centric service interaction Solution-1 A service overlay network run by network operators, with context aware, dynamically adaptive and self-organizing capabilities Solutions End users Vertical industries & companies Service & content providers Network operators Vision-1 Increasing customer Royalty, mitigation of price competition; Optimizing resources Vision-2 High accuracy advertisements: AdvertiService Vision-3 Telecom level support Vision-4 Customer-centric service provision

8. Business visions behind NGSON Page 8 The NGSON PAR vs. the Solutions 5.2 Scope: This standard describes a framework of Internet Protocol(IP)-based service overlay networks and specifies context-aware, (e.g., such as required Quality of Service(QoS) level, type of service such as real-time vs. data, nature of data stream such as I-frame vs. B-frame, and type of terminal such as TV monitor vs. Personal Digital Assistant) dynamically adaptive (e.g., using locally derived information to discover, organize, and maintain traffic flows in the network within a local area network), and self-organizing networking capabilities (e.g., developing network structures based on the needs of the customers and the capabilities of existing network structures), including advanced routing and forwarding schemes, and that are independent of underlying transport networks. 5.4 Purpose: The purpose of this standard is to enable network operators, service/content providers, and end-users to provide and consume collaborative services by the deployment of context- aware, dynamically adaptive, and self-organizing networking capabilities. 5.5 Need for the Project: The amount of services and applications and their interaction are increasing at an exponential rate. This standard is needed to provide a better, more efficient way of providing these services and applications by means of context-aware, dynamically adaptive, and self-organizing networking capabilities. PAR Request Date: 14-Feb-2008PAR Approval Date: 27-Mar-2008 PAR Expiration Date: 31-Dec-2012Project Number: P1903 2.1 Title: Standard for a Next Generation Service Overlay Network Solution-1 Solution-4 Vision-3Solution-3Vision-2 Solution-2

9. Business visions behind NGSON Page 9 But, the NGSON is NOT … The NGSON is NOT expected to solve all problems by itself, but a fulcrum for network operators to solve some critical problems by means of: –Interconnection of large number of existing & emerging services and enablers; –Combination of advantages from both Telecom networks and Internet; –Protection & utilization of user information already exists; –Optimization of network resources in a smart way.

10. Business visions behind NGSON Page 10 Business Dilemmas Visions & Solutions Key technologies Conclusion Table of Contents

11. Business visions behind NGSON Page 11 Service layer evolution 1 st gen.: Traditional Silo architecture2 nd gen.: Centralized SDP solution Next gen.: Loosely coupled service network architecture Interconnect a large number of existing / emerging services / enablers Enhance reusability of services / enablers worldwide Cost-efficient creation of services Harmonize service / network operators, service providers worldwide … Next Generation Service Overlay Network

12. Business visions behind NGSON Page 12 Service router-centric Architecture …… Service Overlay Network Transport Network MobileOpticalxDSL Service router-centric Architecture Self-organized networking Service virtualization and interaction Service & resource addressing Context-aware service routing Service charging

13. Business visions behind NGSON Page 13 Technical requirements General functions 1.Addressing 2.Identifier 3.Standard interfaces and protocols (2) 4.User privacy (2) 5.Interworking (2) 6.Mobility Network related functions 1.Support of network routing 2.Self-organization (3) 3.Adaptiveness 4.Identity 5.Resource virtualization (2) 6.Resource scheduling OAM related functions 1.Manageability 2.FCAPS 3.Service management 4.Lifecycle management (2) 5.Inter-provider service 6.Open environment Service related functions 1.Dynamic service routing (2) 2.Service routing (2) 3.QoS (3) 4.Registration 5.Registration and discovery 6.Registration / de-registration (4) 7.Service discovery (4) 8.Directory (2) 9.Negotiation 10. Service composition (5) 11. Billing of composite services 12. Charging and billing 13.Seamless mobility support 14.Context awareness (9) 15.Self-organizing (5) 16.Adaptiveness 17.Dynamic auto-configuration 18.Security (3) 19.Authentication (3) 20.Service brokering 21.Service coordination (3) 22.Service collaboration 23.Virtualization

14. Business visions behind NGSON Page 14 Business Dilemmas Visions & Solutions Key technologies Conclusion Table of Contents

15. Business visions behind NGSON Page 15 Conclusion For almost all players in ICT, there are some bothering dilemmas existing. IEEE NGSON is trying to solve these dilemmas through a service- overlay-network run by network operators, with context aware, dynamically adaptive and self-organizing capabilities. Under this scheme, large number of existing & emerging services and enablers will be interconnected, Telecom & Internet advantages will be combined, protection and utilization of user information will be balanced, and the network resources will be optimized in a smart way. The RD (requirement document) is going to be frozen soon, NGSON WG is willing to cooperate with ITU-T and other related SDOs. Your support and participate are appreciated.

16. Business visions behind NGSON Page 16 Thank you!