Albtelecom NGN network

• Network descriptions

• Network capabilities

• Broadband deployment and regulatory challenges

Presentation for Cullen International Forum 3:

Monitoring electronic communications and information society services in Enlargement

Countries

Albtelecom NGN network

• Albtelecom is the former incumbent operator in Albania providing fix telephony and broadband and

network services. Albtelecom principal shareholder Calik Holding.

• Eagle Mobile, until recently a 100% subsidiary of Albtelecom has undergone the acquisition process,

and now Albtelecom is provider of mobile network and services too.

• The ongoing investments for modernizing the network aim to expand the presence of Albtelecom

network coverage and services, to increase the quality of service and the variety of range of

products and services.

• The main investments are focused on substituting TDM technology with IP technology.

• Full implementation of NGN will be finalizes within first semester of 2013.

• Albtelecom ambition is to provide the platform for fully supporting with connectivity the growth needs

of Albanian economy.

Structure and topology of Albtelecom network

Core Network

Currently, Albtelecom services are still being offered based on both

TDM and IP technologies (up to now more than 90% of exiting

subscriber are transferred from TDM to IP network (NGN))

TDM Switching systems

There are 2 technologies for TDM systems which are being removed and

their services will be substituted from NGN (MSANs) and NGN (TMGW)

networks.

NGN Core

There are actually three NGN operating technologies supported from

world class equipment providers .

IP Core

All traffic (voice, data, video) is planned to be transported over IP core network.

Best technology is used for IP core part.

Internet service, and all transportation in IP level for broadband and voice

service are being offered through two main systems of access.

o DSLAMs

o MSANs

In the core part these services are supported from

o BRAS-es

o Internet Gateways (IGW)

o Internet Exchange Point (IXP)

VAS Platform

o This platforms enables value added services. Actually Number Portability

and Unified Message Service is already provided through this platform.

Transmission network

Deployment of transmission network with optical fiber will ensure increasing of

speed and capacity provided and quality of service for our subscribers.

The deployment of FO has made possible:

– Connecting of main cities of the country

– Implementation of back up rings to protect the FO

– Connecting of Albtelecom with neighbouring countries through terrestrial or

submarine ways

Important objective is also realizing of FTTx in the main cities.

The main problem for finalizing the huge project for optical fiber deployment

through all the country has been refusing for issuing of the respective legal

permits from local and central governmental authorities to operate with the work,

especially in national roads and urban areas.

Map of existing FO backbone

Total FO deployment 3,346 Km

Total FO backbone 2,125 Km

Total capacity from 4 up to 192

Total FO Investment 49,816,560 Euro

Total backbone FO investment 21,042,400 Euro

Total deployment of FO for 2011/2012 1,722 Km

Total Investment for FO for 2011/2012 9,737,773 Euro

Transmission of high capacity traffic (voice, traffic and data)

between city centers is realized through:

– Transmission systems over optical fiber based on DWDM

technology.

– SDH transmission systems.

– MW microwave transmission systems.

– The IP MW systems (hybrid one, up to 1.6Mb/s capacity).

IP/MPLS network

– Is supported by best world class providers

– The brand new IMPLS network deployed recently will transport

and collect the IP traffic from different levels of access nodes.

(IP/MPLS network topology is given below)

Transmission network (DWDM, SDH, MW)

MPLS Network Topology

Access Network • Access network consists of:

– DSLAM (total capacity of 90.000 ports, ZTE technology)

– MSAN (though which it can be provided POTS, ISDN,PRI, ADSL, SHDSL, VDSL, ZTE

(more than 80%), Huawei and NSN technologies)

• This access network offers high quality voice service and high speed internet up to

100 Mbs (based on VDSL technology)

• Currently, it is still going on the implementation of the MSAN-s all over the country.

At the end of the project, there will be at least 850 MSAN-s.

• Full deployment of MSAN shortens the distance to the subscriber and improves

bandwidth performance. The target for subscriber line is to be less than 1Km.

• Local network consist of copper lines terminating to MSAN and providing the

aforementioned services.

• Albtelecom aims at increasing the presence of FO even in the local network and

get use of GPON technology (under testing).

Infrastructure sharing in NGN network

• Bit stream broadband access

Albtelecom is obliged from NRA (AKEP) to provide bit stream access in four different

levels of the network. The operators shall share Albtelecom infrastructure or get use

of the backhaul network depending on the level of accessing the network hierarchy.

• LLU access services

Albtelecom is obliged from NRA (AKEP) to provide LLU access services. In the NGA

deployment, infrastructure sharing currently consist of accessing in the sub loop of

copper line from MSAN to the subscriber

• Internet Exchange Point

It is a physical infrastructure though which national ISPs may exchange IP traffic

locally

• De-commission of interconnection points

Due to obligation from NRA to offer access and interconnection, Albtelecom has

actually finalized passing of all operators from TDM switches to new IP network soft

switch and TMGW based on ZTE technology.

NGN Expectations post-implementation

Full implementation of NGA on (first semester) 2013 will give Albtelecom

the guaranty:

• to offer higher bandwidths to clients (as a result of shorter copper local

loops and new technology using).

• to offer shorter provisioning times (in days), and fewer provisioning

errors, for double and triple-play service customers:

– it is quicker and easier to provide a double or triple-play customer

on an MSAN than it is to provide that customer using a separate

voice switch and DSLAM.

• to improve the quality of the local loops (by making them shorter).

• Better network performance in terms of QoS.

• Allow for more concentration on the Mobile 3G and LTE deployments.

Albtelecom costs on the Implementation

of NGN network

• Analysing the cost of its products, due to the NGA implementation and the trends of

traffic downward for 2012, the costs are increased comparing with 2011 year on per

minute basis, while access cost has been reduced.

• On Fixed networks is characteristic that even the volumes are decreasing, the

number of assets cannot be reduced as service has to be provided in the same

number of places.

• The solution and the attention of Albtelecom is to enlarge its presence in the market

in order to compensate the traffic decreases by a surge in data usage, particularly

internet access.

• Decrease of retail prices not always good for the health of industry and provision of

services.

ALBTELECOM cost findings

considering NGN network

Product 2011 Actual 2011 considering NGN

Voice Services ALL/minute ALL/minute

Wholesale PSTN Termination local 1.45 1.87

Wholesale PSTN Termination regional 2.36 3.20

Wholesale PSTN Termination Inter- regional 3.85 5.11

Wholesale PSTN Origination local 1.46 1.88

Wholesale PSTN Origination regional 3.03 3.87

Wholesale PSTN Origination Inter regional 4.36 5.62

Wholesale PSTN Transit single tandem 2.59 3.43

Wholesale PSTN Transit double tandem 4.15 5.41

Access Services ALL/month ALL/month

Retail access subscription/installation fee 1,264 1,050

Note: Albtelecom Cost model was developed by AETHA Consulting LTD

• Most of the costs will go to voice, due to the average speed of 2 Mbps chosen by most subscribers in 2011. As ADSL speeds

increase in the future a larger proportion of costs will be allocated to these services.

• The costs per minute are now higher but they will decrease if the ADSL speeds increase; however more importantly, the

access deficit is reduced.

2012 Estimate 2012 estimate inc.NGN

ALL/minute ALL/minute

1.83 2.29

2.80 3.71

4.31 5.68

1.60 2.05

3.27 4.18

4.68 6.04

2.81 3.72

4.47 5.83

ALL/month ALL/month

1,050 1050

• Albtelecom NGN network is a robust network able to provide full range of NGN

services.

• Current and future market needs can be fulfilled with maximum efficiency.

• Internet speeds up to 100 Mbit/s are offered to individual subscribers.

• Bandwidth hungry subscribers can be served with FFTX technology

• Combination of fixed and mobile access technologies will allow for faster penetration

increase.

• More support is needed to facilitate investment and avoid unnecessary infrastructure

duplication.

• Promotion of ICT services is crucial for demand take-up.

• Enation of Regulatory obligations should be proportional, reflect country

characteristics and situation and not risk to compromise or give confusing investment

opportunities

Concluding Notes

FALEMINDERIT!

TEŞEKKÜRLER!

THANK YOU!

Ilir Zela

Albtelecom

Address: Autostrada Tirane-Durres, Km 7,

Kashar, Tirana, Albania

Phone: 042290101

E-mail: Ilir.Zela@albtelecom.al