.gif)
NGN application servers
Paul Bassa picks his way through some of the ‘knowns’ and ‘unknowns’ of Next Generation Networks and suggests that service providers will need to employ insight and wisdom if they are to reap the rewards of IP migration
“As we know, there are known knowns. There are things we know we know. We also know there are known unknowns. That is to say, we know there are some things we do not know. But there are also unknown unknowns, the ones we don't know we don't know.”
Donald Rumsfeld, US Secretary of State for Defence, February 2002
Donald Rumsfeld may no longer be at the US Department of Defence but his 'Known Unknowns' theory – either a work of genius or pure nonsense, depending on your point of view – remains a lasting legacy. Thankfully, the migration of communications networks and services from 'legacy' or 'traditional' to 'next generation' networks (NGNs) has very little in common with the 'war on terror', but Rumsfeld's famous aphorism can be a useful way to describe just how much we truly know about the potential costs and benefits involved as we step into the brave new world of the NGN.
The 'known knowns'
The fundamental 'known known' of an NGN is that it supports a single signalling and transport architecture for multiple multimedia services, including voice and video, messaging and presence, integrated communications and IT applications. This is achieved by the SIP session control and RTP media transport. Also known is the ability to overlay that network with value-added applications that can be rapidly introduced (and removed if required) across any type of network, fixed, wireless or mobile.
These are known capabilities because IP networks and services are available now and because the standards and technology to support these additional features are already being developed and deployed. There may still be technical issues to resolve – either at the design or at the implementation and integration level – but the fundamentals are already in place.
The specific technical choices may vary depending on the network operator or service provider in question. Large European incumbents like BT, France Telecom, Telecom Italia and Norway's Telenor, for example, have committed to large-scale IMS network architectures. As the dominant fixed-line operators in their respective markets they face a number of challenges: reducing infrastructure costs, competing with the influx of new and agile competitors, countering fixed-mobile substitution with fixed-mobile convergence, and re-creating the themselves as content players, either as aggregators or ultimately as owners. The aim of the game here is long-term viability, not short-term returns.
Mid-tier operators, meanwhile, are likely to be more cautious on their commitment to major NGN and IMS investments, though equally keen to exploit the cost and revenue benefits of IP.
Local market conditions will determine their particular requirements, but a common factor behind mid-tier operators migrating to NGN is the declining revenues of voice minutes, which are quickly becoming a commodity thanks to VoIP. This threat, spearheaded by VoIP providers such Skype, may have once been limited to fixed-line but is quickly having a similar effect in mobile too.
Mobile operators are already tied to an existing separation between their circuit-switched and packet data access networks. The principle migration path is to follow the 3GPP route from R4 circuit-switched and packet data access, to R5 IMS, and ultimately to the all-IP R6 network. Mobile operators are trialling IMS networks, but there remains a short-term investment challenge between rolling out the new infrastructure and launching new self-contained services, such as mobile TV.
The smaller service providers will focus on their specific markets, such as prepaid or business services, and will look for immediate cost minimisation and immediate revenue returns. A single multiservice platform supporting PSTN and IP carrier interconnection with least-cost routing, service access, validation and control, real-time rating and charging, service creation and web-based customer self-care, provides the ideal basis on which to enter a market. Such a solution supports the SIP signalling and multimedia capabilities of NGNs, but also directly addresses the integration overheads of multi-vendor solutions.
The 'known unknowns'
While there is plenty that is understood about NGNs, there remains – in Rumsfeld-speak – a number of 'known unknowns.' These are mainly concerned with the uncertainty over precisely how the new technology will disrupt the status quo. There is a myriad of unanswered questions. Which services, applications and features will connect with users and generate the biggest returns? Which stakeholders in the value-chain stand to reap the greatest benefits? Will customers opt for service bundles or pick 'n' mix solutions? Which access technologies will come to dominate – cable, DSL or fibre, mobile or wireless? Only time will answer such questions, but it is useful to look closely at two of them: the uncertainties over service demand and the new service value chain.
Service demand is about delivering value. In the consumer market, for example, value is both personal and social: to teenagers, it's about being new and cool; to their parents it's about being simple and reliable. To deliver true value, therefore, you have to know your customers intimately and respond to their demands instantly.
The first requirement is pure marketing; the second requires the platform capability and business processes that can support, for example, a new feature success rate as low as 10 per cent. The costs of rolling out new services and features will include enabling the network capabilities, integrating operations and business support, promoting the services and acquiring the customers. By minimising the service implementation costs, including operations and business support, the operator is freed to do more than repackage existing services, and can directly address the uncertain demand for new services.
In regards to the value chain, different models may apply depending on the relative power of the content and network providers and on the accessibility of the target market to the content provider: a strong content provider may command premium value and so may opt to sell exclusive rights to a major service provider that wants to attract the maximum number of subscribers; other content providers may look to provide services directly; and others will want to buy into multiple channels (eg via a mobile content aggregator). Similarly, network services may be offered directly, via VNOs, or through sales and services channels. For example, a hosted business communications service, such as IP Centrex, may be offered via local partners that provide a range of IT and communications services to their customers. To maximise value from the relationship, those services partners may want to offer an own-branded service with their own pricing models. The network operator, therefore, must offer both the most appropriate service features for the end-users but also the management and charging flexibility for the channels.
The 'unknown unknowns'
There is almost nothing that can be said about 'unknown unknowns', other than the fact that their very existence suggests the expectation of change. It is likely that the recent revolution in communications and media technology will consolidate into a small number of new business models over the next few years. Operators expecting to exploit this change – at whatever level and position in the market – must be ready with a platform that enables rapid, low cost service rollout with well-targeted new features and services encompassing all types of network and multimedia. Whether this requires an IMS solution, an NGN or softswitch architecture, or a standalone IP platform, will depend on their role in the value chain and the range of services they intend to offer.
To cope with these 'unknown unknowns' service providers will need to demonstrate great responsiveness and the right of combination of intelligent insights and wise actions if they are to realise the true benefits of migrating to IP. It will not be as complex or exhausting as the 'war on terror', but it might seem like it at times.
Paul Bassa is Product Manager, Digitalk
Share this article with others
Post to del.icio.us
Printed from http://www.eurocomms.com/features/111518/NGN_application_servers.html
Comment on this article
Skip to comments
We encourage users to analyse, comment on and even challenge European Communications's articles, including the one above - 'NGN application servers'
User reviews and comments that include profanity or personal attacks or other inappropriate comments or material will be removed from the site.
Additionally, entries that are unsigned or contain "signatures" by someone other than the actual author will be removed. We will take steps to block users who violate any of our posting standards, terms of use or privacy policies or any other policies governing this site.