Carrier Ethernet Wholesale Services and Interconnect Trends

Report
Carrier Ethernet Wholesale
Services & Interconnection Trends
31 October 2011
1
Speakers
• Tadashi Egami, Vice President of Wholesale
Marketing, MegaPath Wholesale
• Les Williams, Director of Ethernet Exchange
Services, Telx
• Ralph Santitoro, Director of Carrier Ethernet
Market Development, Fujitsu
• Moderator: Stan Hubbard, Senior Analyst &
Ethernet Expo Chair, Heavy Reading
Wholesale Ethernet Access Services
2
Topics
• MEF update & key industry initiatives
• Wholesale market opportunity & business
model evolution
• New Ethernet access service type
• Wholesale perspective on provider needs
• Provider interconnection
• Completing the picture with service OAM
• Audience Q&A
Wholesale Ethernet Access Services
3
MEF: Defining Body of Carrier Ethernet
Accelerating the
Global Adoption of
Carrier Ethernet
Networks
and Services
Standards
Education
Compliance
• 186 Member Companies
• 91 Service Providers
• Global Representation
Wholesale Ethernet Access Services
4
31 Carrier Ethernet Specifications
CARRIER ETHERNET
CARRIER ETHERNET
CARRIER ETHERNET
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Service
Attributes
Architecture
Service
Defs
MEF 9
ATS
OAM
Frame
-work
MEF 14
ATS
Wholesale Ethernet Access Services
MBH
ENNI
Cloud,
Backhaul
SOAM
OnDemand,
Automation
5
Many New Projects Including
New Services for
Wholesale Access
UNI
ENNI
UNI
Carrier Ethernet
Service Provider
Carrier Ethernet as Ethernet Cloud
Carrier
Carrier Ethernet
Access Network
Secure,
Deterministic
QoS enabled
Per application SLA
No regulatory issues
IT Manageable
Ethernet
Cloud
Carrier
Cloud
Provider(s)
Enterprise
Cloud
Consumers
Carrier Ethernet for
Mobile Backhaul
Optimizing the
Backhaul
6
Wholesale Ethernet Service Revenue
2010
2011
2012
2013
2014 CAGR
48.2%
38.4%
29.8%
>1G
1G - 100M 100M - 10M
Wholesale Ethernet Access Services
7
1st Audience Poll Question
• For service providers on the webinar - Which
services would you like to extend into new
markets during the next two years? (select
all that apply)
–
–
–
–
–
Ethernet Private Lines (EPL)
Ethernet Virtual Private Lines (EVPL)
E-LAN services
IP services
Cell Site Backhaul services
Wholesale Ethernet Access Services
8
Business Model for Wholesale Access: Before
Market Condition
Challenges
Implementation Platform
Interconnection
Options
•





Ubiquitous Carrier
Ethernet
Off-net connectivity
Time-to-market
Disparate SLAs
Case-by-case provider
agreements
Direct ENNIs
MEF 26 - ENNI Standard Defined
Emergence of Ethernet Exchanges – profitable & efficient scalability
•
•
Standardized, streamlined delivery of Carrier Ethernet services over multiple provider networks.
Carrier Ethernet services delivered to end-users connected at Off-Net locations while supporting
service attributes and SLAs
•
SLAs mostly limited to Network Service as ENNI to UNI remained undefined
Accelerated MEF 26
interconnection of
autonomous Carrier
Ethernet networks
Wholesale Ethernet Access Services
9
Business Model for Wholesale Access: Today
MEF E-Access Service Type Defined
Standard Certified ENNI to UNI Carrier Ethernet Delivery
•
•
Established industry standard for Deploying, buying and selling Ethernet Access Services
• True end-to-end service experience (Class of Service, Management & Protection)
• Retail Ethernet Provider able to offer seamless end-to-end SLA
Ethernet Exchanges taking a critical role for efficient aggregation of wholesale access
Ethernet Access Services
Long Haul
ENNI
Cloud
Buying Providers’
On-Net Network
UNI
Carrier
Ethernet
Exchange
UNI
Enterprise
mid size branch
end-user
ENNI
UNI
Enterprise HQ
ENNI
UNI
Branch Office
SOHO,
telecommuter,
end-user
Ethernet Access Services
Wholesale Ethernet Access Services
10
Business Model for Wholesale Access: Emerging
Dynamic Wholesale Market
Service Provider-to-Communications Service Provider (non traditional Ethernet Network Provider)

Carrier Ethernet Exchanges playing lead broker in facilitating these services today
 Business model still shaping up (private & hybrid cloud demands)
 Large wholesale opportunity for E-Access providers
 MEF actively reviewing the inner workings of these engagements
Ethernet Access Services
Long Haul
ENNI
Cloud
UNI
Buyers Platform Carrier
Network
Ethernet
Exchange
UNI
Enterprise
mid size branch
end-user
ENNI
Cloud/
CSP
Enterprise HQ
UNI
ENNI
UNI
Branch Office
SOHO,
telecommuter,
end-user
Ethernet Access Services
Wholesale Ethernet Access Services
11
MEF Ethernet Service Types
E-Line Service Type
Point-to-Point EVC
UNI
• Virtual Private Lines (EVPL)
• Ethernet Private Lines (EPL)
• Ethernet Internet Access
MEF Retail
Ethernet Services
• UNI-to-UNI
UNI
Multi-point to
Multi-point EVC
E-LAN Service Type
UNI
• Multipoint L2 VPNs
• Multicast networks
• Alternative to hub & spoke
UNI
E-Tree Service Type
• Rooted multi-point L2 VPNs
• Broadcast networks
• Telemetry networks
New MEF Wholesale
Ethernet Services
• UNI-to-ENNI
E- Access Service Type*
UNI
UNI
Rooted Multipoint
EVC
UNI
UNI
Point-to-Point E-Access
UNI
ENNI
• Access EPL
Ethernet
Ethernet or IP
Service
Provider
Access Provider
• Access EVPL
• Ethernet Access to IP services
*Technical Specifications targeted for ratification in 1/12.
Wholesale Ethernet Access Services
12
New MEF Ethernet Access Services
• Establishes first industry* standard defining Ethernet Access Services
– Standardizes first/last mile Ethernet access connections
– Enables retail Ethernet service providers to reach off-net customer locations
• Defines point-to-point, UNI-to-ENNI Ethernet Access Services
• New MEF Certification accompanies new E-Access specification
Service Type
E-Access
Port-Based Service
VLAN-Aware Service
(at the UNI)
(at the UNI)
Access EPL
Access EVPL
Ethernet Private Line
Ethernet Virtual Private Line
Ethernet Access Provider
Ethernet Service
Providers and Ethernet
Exchanges
UNI
ENNI
End-User
UNI
End-User
E-Access
Ethernet Virtual Connection (EVC)
Wholesale Ethernet Access Services
13
Internet Access Service Example using Access EPLs
Ethernet
Access Provider
UNI
ENNI
E-NNI
Internet
Service Provider
Internet
Access EPL1
Subscriber A Site
UNI
Subscriber B Site
• ISP buys Access EPL1 from Wholesale Ethernet Access Provider
– To interconnect Subscriber A Site UNI to ENNI
• Retail Provider buys Access EPL2 from Ethernet Access Provider
– To interconnect Subscriber B Site UNI to ENNI
• ISP delivers Internet Access Service to Subscribers A and B
E-Access services transparently supports IPv4 and IPv6
Wholesale Ethernet Access Services
14
UNI
Ethernet
Access Provider
ENNI
E-NNI
Access EPL1
Retail
Service Provider
EVPL1
UNI
UNI
Subscriber Site C
Subscriber Site A
EVPL example connecting off-net locations using Access EPLs
Subscriber Site B
• Retail Provider buys Access EPL1 from Access Provider
– To interconnect Subscriber Site A UNI to ENNI
• Retail Service Provider sells EVPL1 to Subscriber
– To interconnect Subscriber Sites A and C
• Retail Provider buys Access EPL2 from Access Provider
– To interconnect Subscriber Site B UNI to ENNI
• Retail Service Provider sells EVPL2 to Subscriber
– To interconnect Subscriber Sites B and C
Wholesale Ethernet Access Services
15
Retail
Service Provider
Ethernet
UNI Access Provider
1
Access EPL1
Ethernet
Access Provider2 UNI
EP-LAN
E-NNI1
E-NNI2
UNI
Access EPL2
Subscriber
Site C
Subscriber Site B
Subscriber Site A
EP-LAN service example connecting off-net locations using
Access EPLs from two different Ethernet Access Providers
• Retail Provider buys Access EPL1 from Access Provider1
– To interconnect Subscriber Site A UNI to ENNI1
• Retail Provider buys Access EPL2 from Access Provider2
– To interconnect Subscriber Site B UNI to ENNI2
• Retail Service Provider sells EP-LAN service to Subscriber
– To interconnect Subscriber Sites A, B and C
P2P Access EPLs used to deliver a Multipoint EP-LAN Service
Wholesale Ethernet Access Services
16
Wholesale Ethernet Access Service Market
Some things to consider…
• Ethernet preferred technology for inter-provider handoff
– Retail Providers wants Layer 2 handoff to wholesale access provider
• Even if Retail Provider is delivering an IP service to its customers
• Ethernet services delivered over different L1 networks
– SONET, T1s/T3s, Wavelengths, OTN, copper pairs, fiber (IEEE 802.3)
– Need to unify Ethernet access services over these different networks
– MEF Ethernet Access Services achieve this
• Diverse usage of Ethernet Access Services
–
–
–
–
Access to IP Services
Layer 2 site-to-site connectivity
Residential broadband backhaul to IP POP
Cell site backhaul to mobile switching center
Broad usage of MEF E-Access services
over a diverse set of access network technologies
Wholesale Ethernet Access Services
17
Wholesale Ethernet Access Service Challenges
Customer
Premises
Retail
Service
Provider
Access Networks
Ethernet rings
Internet
Service
Provider
WDM
DS-1s
PDH
Access
Network
SONET
DS-3s
Copper
Access
Network
Ethernet
SONET
How do you deliver MEF E-Access
services over diverse access networks?
Wholesale Ethernet Access Services
Ethernet ENNI
Ethernet UNI
Ethernet
Video
Service
Provicer
IP/MPLS
VPN
Provider
Ethernet
Service
Provider
Wireless
Service
Provider
Cloud
Service
Provider
18
MEF-compliant E-Access Services over a wide range of
Layer 1 access networks
Customer UNI
Premises
EoX
Access
Ethernet NID
EoF
GbE/10GbE
GbE/10GbE
EoX
ENNI Retail
Service
Aggregation
Provider
EoX Gateway
Packet Optical
Networking
Platform
Access Network
EoX Gateway makes
EoPDH
NxDS-1
EoPDH
NID
different
Layer 1 access
PDH Access MSPP OC-n
Network
networks
look like an
EoPDH NID
NxDS-3
Ethernet
Access Network
EoX Gateway
EoCu
Ethernet in,
out
CopperEthernet
IP
Access
xDSL CPE
Network
Packet Optical
Networking
Platform
EoS
SONET
DSLAM GbE
Internet
Service
Provider
Video
Service
Provider
IP/MPLS
VPN
Provider
Ethernet
Exchange
Provider
Connect
directly with
Retail Providers
Connect indirectly
to Retail Providers
through Ethernet
Exchange
ENNI
Ethernet
Service
Provider
Ethernet
Exchange
Provider
Wireless
Service
Provider
Ethernet
Exchange
Provider
Cloud
Service
Provider
EoX Gateway enables MEF E-Access Services over diverse Access Networks
Wholesale Ethernet Access Services
19
2nd Audience Poll Question
• What do you believe is the biggest challenge
in introducing or selling Ethernet services?
(select one)
–
–
–
–
–
–
Availability (lack of footprint)
Qualifying process for the service
Installation turnaround
Quality of service
Not enough service features
Non-standard interconnects
Wholesale Ethernet Access Services
20
MP Wholesale Perspective on Provider Needs
• Footprint
• Comprehensive
access portfolio
Availability
Cost
Efficiency
• Upfront set-up
(e.g., backhaul
costs)
• Ongoing
operational costs
Provider
Technology
Operational
Excellence
• Performance
monitoring
• SLA support for
customers
• Equipment
selection
• Handoff options
• Key standards
Wholesale Ethernet Access Services
21
Transitioning to Ethernet
Internet
Large
Business
Retail Provider
ATM
XDSL
DSLAM
EoDS0
ATM
EoDS3
Medium
Business
T1/BT1
DS3
Branch
Offices
IP BACKHAUL/
L3 NNI
(GigE)
PE
DSLAM
IP
IWG
Ethernet
ASBR
PE
MPLS
EoC
Retail
Provider
IP
Retail
Provider
MPLS
DSLAM
X-changes
Devices
Retail
Provider
Ethernet
Access
Wholesale Ethernet Access Services
22
Nationwide EoC – Capitalize on Demand
2011 – Build Out Top
Markets
2010
2012 – Expand
Further
Delivered Initial
Build in Top Markets to Reach
Build Additional EoC COs to Reach
EoC Footprint
Additional 1.5 million businesses
Another 1 million businesses
•
100 COs in LA
•
Turn up 300+ COs in 2011
•
250+ COs Ready for Service in 2012
•
Traction with Wholesale
partners in LA region
•
Key markets covered:
•
Fill out existing key markets +:

East: New York, Washington DC,
Philadelphia, Baltimore, Boston

West: San Fran, Seattle, San Diego

Mid-west/ Mountain: Chicago,
Denver, Dallas, Phoenix

•

Houston

Austin

Detroit

Etc.
Introduce higher speeds (>20M)
Southeast: Miami, Atlanta
Updated Sept, 2011
 Symmetric data rates of 2.0, 3.0, 5.0, 8.0, 10.0, 12.0, 15.0 and 20.0M GA
 Multiple Ethernet Class Of Service packages
 Strong SLAs: latency, availability, packet delivery
 Compelling price points
Wholesale Ethernet Access Services
23
24
Ethernet Exchange Fundamentals
A Ethernet Exchange must facilitate all 5
attributes of Carrier Ethernet
Services – must support Translation of MEF EVPL, E-Line,
E-LAN service types and profiles with multiple CoS
Scalability – Scalability. Must support and access millions
of EVCs and worldwide locations with scalable processes
Quality of Service – Service Monitoring
Must support enforceable, measurable, end-to-end service
(frame delay, delay variation, availability).
Scalability – the key
cost saving and revenue
growth driver behind the
development of Carrier
Ethernet Exchanges
Service Management – Process Integration
Must support normalized process human and system for
process transactions
Reliability – Protection. Must provide protection: carrier
class with geographical diversity
Wholesale Ethernet Access Services
25
ENNI
UNI
End User
Service Provider
UNI
Service Provider
End User
Q&A
27

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