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2773_EAN_wp_v4 10/11/03 9:34 Page 1 White paper Equal Access Networks for real broadband access 2773_EAN_wp_v4 10/11/03 9:34 Page 2 Contents 02 The importance of real broadband The importance of real broadband Metropolitan economies are important to the national 03 New opportunities for economy. To make a real contribution to national prosperity, service providers cities need to increase levels of economic growth and become 03 Benefits of an Ethernet-based more competitive. They must also improve the way they are infrastructure governed and managed. 04 Cisco’s ETTx solution Connecting real broadband to a city can change the way whole 06 Benefits of intelligent networks areas work, play and learn. That gives municipalities real 08 Infrastructure for Equal opportunities to deliver better service to tax payers, attract Access Networks more businesses to the area and improve overall prosperity 09 A complete provisioning and competitiveness. solution Metro Ethernet from Cisco is an ideal foundation for real 09 Supporting efficient broadband. Today, almost all network traffic begins and ends as network operation IP, and Ethernet and the Ethernet RJ-45 connector are seen as the 10 Real broadband – the prospects most important form of access to public networks. The Ethernet for residential subscribers to the x (ETTx) Solution is based on Metro Ethernet technology 11 Real broadband – the prospects and utilises IP to provide intelligent network functions. It represents for business subscribers a unified network infrastructure providing end-to-end delivery 12 Business models for of next-generation voice, video, storage and data services. implementing real broadband Equal Access Networks The availability of dark fibre and the economics of Ethernet in the local loop are radically changing access to metropolitan area 14 TV and video solutions networks. By developing Ethernet as the transport technology of 14 The service provider choice in the first mile, service providers can quickly build real business opportunity broadband networks that avoid the cost and complexity of 15 The role of the dark protocol conversion and unnecessary layers while leveraging fibre provider an installed base of 300 million low-cost Ethernet ports. 15 Emerging business models Cisco ETTx can accelerate the implementation of real broadband 16 Proving the business case by allowing service providers to exploit the use of existing 16 Why Cisco? rights of way and civil infrastructures through strategic partnerships with utilities, private companies, municipalities and other local stakeholders. 2 2773_EAN_wp_v4 10/11/03 9:34 Page 3 Equal Access Networks for real broadband access – white paper New opportunities for service providers maximise revenue, it is essential that subscribers can enjoy a Governments worldwide are making equal access mandatory "real broadband experience" where they can access all for broadband access providers. In existing deregulated available services and applications on demand, at any time markets, a number of agreements are already in place: from any connected content provider or ISP. • access-level agreements, with DSL unbundling and an Equal Access Networks support this with a wide range of obligation to provide a minimum number of leased lines to subscriber benefits: an alternate or second/third operator • ability to select the content provider or ISP of choice • interconnect-level agreements, with interconnection charges • service on demand and termination fees regulated country-by-country •broadband access with no or minimal delay for service • open access agreements for cable operators. activation Market and regulatory forces are driving service providers to •choice of services rather than one standard package open up their networks so that subscribers can specify their own choice of ISP or content provider. Although this trend • consolidated billing and service management. appears to open up networks to competitors, it actually helps service providers increase real broadband subscriber Benefits of an Ethernet-based infrastructure penetration and generate additional revenue. Bandwidth alone is becoming so heavily commoditised that margins are dwindling to near-zero. To differentiate themselves, The main source of revenue for real broadband service service providers must move higher up the value chain, open new providers is subscribers - residential or business customers. To revenue streams and leverage maximum value from their existing Benefits of an Ethernet based infrastructure Data Voice Video Storage VoIP IP Video iSCSI IP Network PBX Voice NTSC/PAL Fiber Channel Network Coax Network SAN 3 2773_EAN_wp_v4 10/11/03 9:35 Page 4 Equal Access Networks for real broadband access – white paper networks. Cisco ETTx offers a truly multi-dimensional opportunity As the industry's only fibre-based metropolitan broadband for service providers, delivering expanded customer bases, solution supporting standards-based voice, video, data and reduced customer churn and a diversity of new revenue streams. storage network architecture, Cisco ETTx provides a roadmap for combining business and technology strategies into a single The financial case for ETTx is compelling considering the low integrated model. cost of standards-based Ethernet ports and equipment. An Ethernet interface card can cost a much as 10 times less than A service provider operating a Cisco ETTx solution has the a SDH interface and can compete with the cost of deploying opportunity to offer other providers specific network facilities DSL. The simplicity of provisioning ETTx means that staffing with interconnection and provisioning capability. An ETTx and operating costs are also lowered - while revenue network allows the operator to open the network to multiple opportunities are greatly increased. ISPs, voice operators, video content providers and other providers, giving their subscribers the freedom to buy services Cisco ETTx installed directly over fibre enables service providers from a provider of their own choice. to offer customers a 10 or 100Mbps connection, far faster than other available broadband technologies and upgradeable to Cisco’s ETTx solution 1Gbps by simply changing the customer premise equipment. Cisco’s Metro Ethernet infrastructure provides a foundation for Used in conjunction with Internet Protocol (IP), ETTx gives integrated voice/video/data/storage solutions as well as MPLS network service providers a future proofed unified platform VPN-based services. on which they can deliver a rich mix of voice, video, storage Primary points of presence (PoPs) are installed in the metropolitan and Internet access services to both residential and business area network from which fibre is laid to secondary PoPs. More customers located in high-density buildings. This rich service fibre is then laid from the secondary PoP to an Ethernet/IP portfolio gives the service provider a strong competitive switch in the building itself, often in the basement of an office advantage. It allows the creation of service bundles based on or apartment block. "triple play" services which are not feasible over first-generation broadband technologies like ADSL. The fibre is usually laid using a ring-based topology to provide resilience. Robust Ethernet and Internet protocols and good •Voice traffic is becoming packets on an IP network using network design ensure that there is no noticeable interruption VoIP technology to voice calls or video sessions if a link is lost. • IP video is bringing video onto PCs and IP networks, with A fibre-based LAN is then laid within the building which video-on-demand, videoconferencing, company event terminates in a network socket in each office or home. Ethernet broadcasting and video surveillance now used by companies optical/electrical converters are installed directly onto this fibre. around the world Residential or business subscribers are provided with an IP home • TV broadcasts, video-on-demand and network video access gateway, an IP set-top box for the television, a network recording are also available to a growing number of card for their computer, connection cables and set-up instructions. residential customers in European cities The gateway is connected either to existing analogue telephone • New technologies like iSCSI are allowing IP networks to handsets for voice services, or to IP phones for advanced services. connect computer systems to storage systems located Currently, most subscribers are offered a connection with a anywhere in the world. speed of 10Mbps. 4 2773_EAN_wp_v4 10/11/03 9:35 Page 5 Equal Access Networks for real broadband access – white paper Service providers set up gateways to the incumbent of IP multicast technology, which allows multiple video streams telecommunications operator for interconnection of voice calls to be transmitted across the network. This allows delivery of and video gateways to video content providers or video servers hundreds of digital TV channels to thousands of subscribers for video-on-demand. Video delivery is achieved through the use without overloading the network. Structure of the inteligent network Primary and Secondary POPs Access Provider Edge STM16 STM16 Backbone Layer Intra-POP Layer E1, E3, Access STM1 Layer ONS15454 1 Gbps 100 Mbps Residential Ethernet Ethernet Concentration Layer 1 Gbps Ethernet Customer site A Customer site B Top/Medium Business Customers Residential Access Layer 5 2773_EAN_wp_v4 10/11/03 9:35 Page 6 Equal Access Networks for real broadband access – white paper Benefits of intelligent