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An Introduction to NTT's NGN and New Services in Japan

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An Introduction to NTT's NGN and New Services in Japan An introduction to NTT’s NGN and new services in Japan MarchMarch 17,17, 20072007 TadanobuTadanobu OKADAOKADA AssociateAssociate SeniorSenior ViceVice President,President, ExecutiveExecutive DirectorDirector ofof InformatInformationion SharingSharing LaboratoryLaboratory Group,Group, NTTNTT © 2007 1 Outline 1.1. TheThe currentcurrent statusstatus andand futurefuture directiondirection ofof Japan’sJapan’s telecommunicationstelecommunications marketmarket 2. NTT’s plans for the deployment of its NGN 3. Conclusion © 2007 2 Measures taken to prolong the lifetime of NTT’s PSTN facilities • NTT’s PSTN consists of several thousand switches. • Although a then-state-of-art switching system (NS8000) was developed around 10 years ago, the rapid progress in technology since then has resulted in the discontinuation of production of some components used in the system. Currently, we are trying to prolong the lifetime of the switches by re-establishing sources for such components. Migration to more highly integrated LSI that operates with lower voltage power supply NTT Communications 1.8, 2.5V PS Several 0.25µm tens Transit Transit e 3.3V PS 0.35µm Other carriers Other carriers e switch switch r 0.5µm POI g POI e 5V PS 0.6µm d NW between prefectures e ion d 0.8µm u t in a t 1.0µm n co is 1.2µm D Several Transit NTT West NTT East Transit Integr switch switch hundreds 90 95 00 05 Year NW inside a prefecture NW inside a prefecture Several NS8000 thousands Local Local Local Local (developed around 10 years ago) switch switch switch switch © 2007 3 Maturing of IP telephony technology in Japan y IP telephony is spreading from business users (IP-PBX). Low rates (or free between specific points) offered by ISPs have increased the number of IP phone users in Japan to more than 13 million. y NTT already provides an IP phone service “Hikari Phone” using the ordinary telephone numbering plan. OCN.Phone ■ Increase of subscribers to IP 1 Free phone service 14 OCNOCN Affiliated ISP’s IP Affiliated ISP’s illions) 12 network IP phone m 2 Free (178ISPs) 10 *1 *2 Non-affiliated ISP’s 8 3 ¢7 / 3min IP phone le (12ISPs) ab rk 6 a th *2 em w PSTN phone R ro 4 ¢7 / 3 min 4 g *2 5 ¢9 / 3 min PSTN phone 2 ¢14 / min 0 6 Mobile phone Number of subscribers ( 2004 2005 2006 Int’l phone network 7 Discount rate Int’l phone *1: NTT Communications, Inc.: http://www.ocn.ne.jp/english/personal/option/voip/ *2: not changed by distance © 2007 4 Change in net increase of subscribers to broadband service • In the first quarter of 2005, the net increase in FTTH users exceeded that of ADSL users. In the second quarter of 2006, the number of ADSL users began to decrease. • In contrast, as anticipated by the u-Japan Plan, optical access is increasing rapidly. 1.6 Number ofsubscribers(millions) 1.4 7 1.2 6 1.0 5 ADSL 0.8 4 0.6 3 0.4 2 FTTH 0.2 1 0 0 Net increase in numbers (millions) -0.2 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2002 2003 2004 2005 2006 Source: Website of the Ministry of Internal Affairs and Communications © 2007 5 Decrease in revenues from both fixed-line and mobile phone services of NTT • The revenue from the fixed-line phone service has decreased considerably. • The revenue from the mobile phone service has also begun to decrease. 9.2 Fix-line-based operators （billion 8.8 -2.7 NTT East/West/Communications +0.4 US$） 6.5 6.9 ProfitProfit Profit +0.4 2.8 +530 2.6 1.8 2.0 （billion Mobile (NTT DoCoMo) +1.0 -0.2 -0.6 US$） 55 50.6 RevenueRevenue RevenueRevenue 49.4 48.0 50 47.2 45 42.1 40.1 40.4 39.7 40 35 2002 2003 2004 2005 2002 2003 2004 2005 © 2007 6 Hokkaido rticularly fierce in urban areas Aomori Akita Iwate Miyagi 7 Yamagata TT faces tough competition and is falling Fukushima Ibaraki Tochigi Gunma Saitama Chiba Tokyo Kanagawa Yamanashi © 2007 Nigata Toyama Ishikawa Gifu Nagano Shizuoka Aichi Fukui Mie Nara Kyoto Osaka Shiga Competition for share of FTTH (Asis paof March 2005) Wakayama Hyogo •NTT has over 50% shareFTTH in optical market accessin individual nationwide. prefectures However, in urban areas, Okayama where fibers can be installed efficiently, N Hiroshima behind in many prefectures. Tottori Shimane Yamaguchi Share of 100 Kagawa 90 Ehime NTT average 80 Tokushima Kochi 70 Fukuoka 60 Saga 50 Nagasaki Oita 40 Miyazaki 30 Kumamoto Kagoshima T’ hr (%) share NTT’s 20 10 Okinawa 0 What is expected in 2010 . Numerous and diverse devices and appliances will be connected to the network, which should inevitably increase the variety of services, the means whereby services are provided, and number of service providers. Domestic A variety of application services e-business & life market ApplicationApplicationApplicationApplicationApplication 54T yen (2005)Æ86T yen (2009) Platform market The future network needs a 2.4T yen (2005)Æ4T yen (2009) capacity of... Security market Future network Peta bits (1015) in 2015 1.2T yen (2005)Æ1.6T yen (2009) Exa bits (1018) in 2024 http://www.nri.co.jp/news/2005/050114.html Source: “R&D strategy for the 21st century network core technology”, Ministry of Internal Affairs and Communication 1.3B (2005) Æ1.8B subs (2010) Source: ITU statistics Internet New network appliances http://www.itu.int/ITUD/ict/statistics Fixed-line IP-TV Mobile access 2.0B (2005) 1.0B (2005) 5M (2005) Æ53M households Domestic applications Æ7.0B subs Æ2.5B subs 9. 5M (2005) (2010) (2010) (2010) Source: RNCOS Æ15M units (2010) Source: ITU statistics Source: ITU statistics http://www.rncos.com/Report/I http://www.nri.co.jp/news/2005/050114.ht http://www.itu.int/ITUD/ict/statistics http://www.itu.int/ITUD/ict/statistics M063.htm ml © 2007 8 Future direction of NTT as a telecom carrier It is urgent for NTT to increase profit by increasing revenue in addition to reducing capital and operational expenditure. z Promote broadband & ubiquitous services like FMC and triple play >Revenue shift from telephony Revenue from z Establish service delivery platform telephony Revenue for new seamless businesses from >Expand telecom market Broadband and ubiquitous services Cost z Migrate telephone network to IP >Reduce capital and operational expenditure © 2007 9 Key technology for revenue shift (GE-PON) © 2007 10 Triple play on a single fiber - already commercially available - Broadcasting companies VOD Internet Telephone II SS PP Telephone Broadcast networknetwork Broadcast High-speed IPIP Videos Internet IP phone Programs networknetwork OpticalOptical fiberfiber :: SimultaneousSimultaneous transmissiontransmission ofof broadcastbroadcast programsprograms andand IPIP datadata IPIP phonephone :: High-qualityHigh-quality videophonevideophone TVTV Telephone :: High-qualityHigh-quality brbroadcastoadcast andand videovideo distridistributibutionon TV InternetInternet : Stable and high throughput PC : Stable and high throughput environmentenvironment © 2007 11 Features of NTT’s GE-PON system - Fine-tuned bandwidth control for each user AA peakpeak speedspeed ofof 100M100M bpsbps bidirectionalbidirectional transmissiontransmission forfor eacheach customercustomer isis possiblepossible underunder lowlow traffictraffic loads,loads, withwith IEEEIEEE 802.3ah802.3ah interfaceinterface conditions.conditions. InIn thethe eventevent ofof heavyheavy traffic,traffic, thethe operatoroperator cancan controlcontrol thethe minimumminimum bandwidthbandwidth allocatedallocated toto eacheach ONUONU (this(this enhancesenhances thethe functionalityfunctionality ofof IEEEIEEE 802.3ah).802.3ah). ForFor example,example, ifif 3232 usersusers shareshare thethe bandwidthbandwidth equally,equally, thethe operatoroperator cancan guaranteeguarantee atat leastleast 30M30M bpsbps forfor eacheach customer.customer. ONU-1 Downstream ONU-2 Upstream ONU OLT ONU-3 Max: 100M bps/ONU Optical splitter ONU-4 （Max: 32 branches） © 2007 12 1.1. TheThe currentcurrent statusstatus andand futurefuture directiondirection ofof Japan’sJapan’s telecommunicationstelecommunications marketmarket 2. NTT’s plans for the deployment of its NGN 3. Conclusion © 2007 13 Approach to NGN BuildBuild NGNNGN thatthat isis ofof highhigh quality,quality, flexibleflexible andand securesecure Develop and spread Open network that broadband and ubiquitous allows collaboration services that allow fixed- with other carriers and mobile convergence (FMC) xSPs Smooth migration from Expand business xSP: existing fixed-line to IP opportunities by exploiting Provide new telephony, and from copper to broadband and ubiquitous business optical access services opportunities StrengthenStrengthen competitivecompetitive edgeedge andand financialfinancial base,base, andand contributecontribute toto achievementachievement ofof u-Japanu-Japan © 2007 14 Basic concept of NTT’s NGN Community, ASPs and various e-commerce service players Network Broadcast, interface Lifestyle support, content providers home appliance disclosure,to enable various service players Open network interface to provide a IP-based network enabling wide array of provision of seamless fixed applications on IMS the NGN and mobile services NGNNGN Safe, secure, and convenient network equipped with features of both the existing fixed-line Home Office, network telephone and IP networks hotspot, etc. IMS:IMS: IPIP MultimedMultimediaia SubsySubsystemstem © 2007 15 Roadmap to building NTT’s NGN Fiscal year 2006 2007 2008– STEP 1 Steps in Provide optical access to 30M introducing users (End of fiscal 2010) the NGN Field trials STEP 2 STEP 3 Construct Construct transit network access networks Seamless integration Core network with mobile network -deploy core nodes -deploy optical wavelength deploy
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