Technical Overview

NGN for PSTN Transformation

Market trends In the current business environment, most operators are faced with the same problem: how to control costs and cap investment in TDM technology, whilst developing new services to attract and retain customers. Major service providers’ needs and requirements coming from the market are:

• Compensate for a stalled growth, and in same cases a reduction, of revenues coming from voice switched access.

• Solve the obsolescence problem, both for the transit level and the access level of the PSTN; in this way the operator can reduce its costs, coming both from the everyday operation of the network and the acquisition of TDM equipment for network maintenance and expansion.

• Launch innovative services in order to attract and/or retain customers; in this way a service provider can keep ahead of competition and generate new revenue streams.

This evolution in the service providers’ networks leads to the so-called NGNs, Next Generation Networks, which pave the way for the adoption of VoIP (Voice over IP) technology both at core network and at subscriber level. As shown in the chart, the total number of Residential/SOHO VoIP users in EMEA and CALA is growing quickly and it is expected to exceed, in 2013, 85 Millions of users.

EMEA & CALA Residential/SOHO VoIP Users

0102030405060708090

2007 2008 2009 2010 2011 2012 2013

Mill

ions

of u

sers

EMEACALA

Source: Infonetics Research, March 2009

Cisco and Italtel have jointly developed the “NGN (Next Generation Network) for PSTN Transformation” solution; this provides an evolution path for traditional voice network providers. By bringing together voice and data on a single converged backbone, based on Cisco IP/MPLS and media gateway technology and Italtel i-SSW Softswitch, service providers are able to expand or rationalize and consolidate their existing TDM network and plan evolution towards innovative IP-based services. As the network migrates, the opportunities for new services include the integration of Enterprise Business IP Communications – a high growth market – as well as residential VoIP telephony over broadband.

NGN for PSTN Transformation Solution Description The NGN for PSTN Transformation solution allows a service provider to migrate its TDM network to VoIP, both at transit level (Class 4) and at the access level (Class 5); moreover, it’s possible for a service provider to leave its PSTN as it is and use VoIP technology only for network expansions, easily integrating existing TDM assets. In order to include access, edge, core and service layers, a complete NGN PSTN transformation can be spread over several years. The architectural options are the following:

• NGN to the transit level (Class 4 TDM Replacement, point 1 in the diagram): Local Exchanges are left unchanged, while the Transit Layer is replaced with Italtel Softswitch and Cisco Media Gateways; the number of TDM Transit Switches and central office sites is reduced

• NGN to the access level (Class 5 TDM Replacement), suitable for restructuring legacy installations and obsolete multi-vendor networks, or for TDM Class 5 expansions to avoid investments in legacy TDM technology. Two options are available:

1. replacement of Local Exchanges with V5.2 / PRI multiplexers collected by i-SSW remote PoPs (point 2 in the diagram)

2. replacement of Local Exchanges with IP Access Gateways controlled by Italtel i-SSW softswitch (point 3 in the diagram).

The key element in the architecture is the Italtel i-SSW Class Independent Softswitch (i.e. suitable for both Class 4 and Class 5 deployments). It delivers traditional Supplementary Telephony Services (STS) and Operator services (e.g. embedded functions for Lawful

Interception, Number Portability, Voice VPN, Carrier Selection and Pre-selection, etc.) and allows the supply of a full set of interfaces towards traditional Intelligent Network platforms. Moreover, the i-SSW is ready for the evolution towards innovative multimedia services (Broadband Telephony, Messaging, Video Telephony, etc.). The IP Access Gateway is an access solution for different implementations of Class 5 TDM migration to VoIP, which performs conversion of PSTN services to VoIP and implements standard media processing functions such as voice compression and packetization. The system operates under i-SSW control using standard MGCP, H.248 and SIP protocols and provides a complete set of narrowband and broadband access services (POTS, ISDN, leased lines, xDSL, Ethernet). Cisco Media Gateways can support Universal Port in order to deliver the so-called Internet Offloading application: it is the possibility to control a Media Gateway Port either as a modem or as a VoIP termination, on a call by call basis, in order to concentrate, gather and separate Internet dial-up access traffic at the origin closer point, avoiding congestion of the TDM transit network. Cisco IP/MPLS backbone supports transport of Voice traffic providing carrier grade service availability leveraging QoS (Quality of Service) and MPLS Traffic Engineering techniques. This solution is also aimed at Mobile Operators that intend to migrate to a Multi-service IP Backbone for inter-MSC trunking, replacing (or expanding) their traditional TDM transit; Italtel and Cisco architecture, that supports also Gateway MSC functions, is in field since 2002 under the name "Virtual Transit Network" (VTN) providing pure transport and absolute transparency. NGN for PSTN Transformation Solution Components

• Call-control and signalling device: Italtel i-SSW Class Independent Softswitch • Voice trunking gateways: Cisco AS5xxx and MGX 88xx Series carrier voice

gateways • Access devices: IP Access Gateways and traditional (V5.2) Access Gateways • Other peripheral components: application servers, announcement and media

servers, billing devices and route servers • Management layer, with the element managers and the high level OSS for Billing,

Service Assurance, Fault Management, Performance Management, etc. The picture shows a Cisco and Italtel node that can be deployed at the service provider sites for PSTN Transformation. It is composed of Italtel Softswitch (i-SSW, upper part) and of Cisco Media Gateway (MGX 8xxx series, lower part). When fully equipped, a node made of a single i-SSW supports:

• Up to 1,000,000 total subscribers • Up to 300,000 trunks • Up to 10,000,000 BHCA (Busy Hour Call Attempts)

lling

Cisco and Italtel Professional Services can support service providers in designing, implementing the NGN Solution as well as integrating it with Carrier Provisioning and Billing system.

• Up to 2,048 SS7 destinations and 1,024 SS7 signalinks

NGN for PSTN Transformation Solution Value Proposition The NGN for PSthat intend to replace or expand

TN Transformation solution provides valuable benefits to service providers their PSTNs with VoIP technology:

• Significant operational expenditure (OpEx) savings, arising from the following two circumstances:

o Replacement of a traditional or obsolescent technology with a new one, with more compact and less consuming equipment, allowing for a reduction in the number of nodes, use of open interfaces, etc.

o Adoption of IP, allowing reduction in transmission and bandwidth requirements, easier and more economic network management, etc.

• Capital expenditure (CapEx) savings coming from the capping of investments in TDM switch and network technology, from the reduced cost of IP technology, from the sharing of backbone resources between voice, data, etc. Additional savings can come from its high scalability.

• Segue to new IP services—The NGN for PSTN Transformation solution can be a foundation for the Integrated Networked Business Voice Solution using Cisco Unified CallManager, or the Residential Voice over Broadband solution to deploy IP-based voice services for the consumer market.

• Synergy with broadband access deployment—Support of multiservice access gateways to packetize voice at the edge of the IP backbone with minimum customer impact or cost, suitable for mass broadband deployment.

Cisco and Italtel Value The Cisco and Italtel alliance takes advantage of the complementary nature of the two companies: Italtel is market leader for softswitch technology and has a valuable and unique experience in VoIP, while Cisco is market leader in IP networking and IP

munications. In this way, Cisco industry-leading IP infrastructure equipment is ted

ComcompleCisco and ascalable andand cominteroperagra sCishas beleveraThe objective of this Itele mprovidserviceIn proand todeploy argest VoIP backbones in

e world that transports all Italian long distance PSTN traffic, thus allowing significant OPEX/CAPEX savings since 2002. This ac ievement is the result of combining Cisco Media Gateway platforms with Italtel softswitch technologies along with voice and signalling expertise, an effort backed up by rigorous network design and solid solution testing and tuning. In particular, as far as the PSTN Transformation solution is concerned, the Italtel main references are Telecom Italia in Italy, TP (Telekomunikacja Polska) in Poland, Orange in Spain, Hansenet and Freenet in Germany and France Telecom in France.

by Italtel state-of-the-art softswitch platform. It ltel are uniquely positioned to help deploy voice services in a cost-effective,

reliable manner over a converged IP network. Their continued participation mitment to standardization organizations has contributed to greater bility, as well as more mature and robust architectures aimed at fulfilling carrier

provider’s requirements. de erviceco’s and Italtel’s accumulated experience with these deployments and best practices

en used to refine both product and solution designs. This enables operators to ge their experience and achieve solid results in a shorter time frame.

taltel and Cisco proposal is to tailor a solution with a cost-effective co munications infrastructure, fully scalable and flexible, to meet the current service

ers’ requirements, while open to a step by step introduction of new value-added s, based on IP. ticular, Italtel and Cisco have been deploying par VoIP infrastructures for service

viders since 2001, so that operators worldwide have been able to both cut their costs offer innovative services to their customers. For example, Italtel and Cisco joint ment has enabled Telecom Italia to implement one of the l

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Contacts For more information on how Cisco and Italtel can help you achieve success, contact info@italtel-cisco.com and visit www.italtel-cisco.com

May 2009