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Before we look at what a 'Next Generation Telco' does, let us have a look at the shortcomings of a traditional telco that are driving the migration to 'Next Generation Telco' practices.
 1. Maintain two different networks.
a circuit-switched network which is primarily for voice.
a packet-switching network which is primarily for data (usually an IP network). This is expensive as the two networks are usually run almost as two separate businesses, with two sets of associated overheads.
2. Long-Haul circuits for voice are usually over circuit-switched leased lines.
Long-Haul circuits for voice are usually over circuit-switched leased lines.
Because the packet bandwidth can be shared across multiple channels and can use varying degrees of compression dynamically resulting in a better bandwidth utilisation than circuit-switched which pre-allocates the bandwidth. This also allows packet-switched bandwidth to handle 'peaky' traffic better than circuit-switched.
In anticipation of a huge demand for IP (packet) bandwidth driven by the Internet .COM stockmarket mania, a massive amount of fibre was laid across all major long-haul routes. As we all know, the .COM bubble burst, and the expected demand for IP bandwidth never materialised. This left a state of supply far outstripping demand, with the inevitable drop in price for IP bandwidth.
IP bandwidth is technically easier to implement and uses cheaper equipment.
3. In traditional circuit-switched systems, most data services are implemented in the SS7 network.
TSS7 links use 64K E1/T1 channels or 56K V.35 channels. These relatively low bandwidth, but very expensive data links were never meant to carry high data volumes, just very short quick data messages for setting up and tearing down calls and for simple data transactions.
Mobile operators use the SS7 network extensively to operate GMS networks. The explosive growth of text messaging in GSM networks has caught the industry by surprise. The result is that very expensive SS7 links are having to be added to circuit-switched networks to handle the resulting massive increase in data bandwidth requirement. It would be much much cheaper to move the text messages on a packet network on long-haul routes.
4. Traditional switches are great at volume and reliability, but terrible at complex new services.
Newer circuit-switching switches have an IN architecture such that the control aspect of the switching can be provided by an external applications server, but most legacy systems have no choice but to add a more flexible PC based system to the traditional legacy switch to add new services. These are rarely standards compliant and often result in being locked in to the supplier. Also, there is wastage of resources like E1 ports as these have to be doubled up just to break out a channel from the main switch to the PC and then to bring it back into the switch again.
5. The traditional telco services have low barriers to entry.
This means that competition in these areas of service provision (voice, fax, internet, SMS) is intense and margins are lean. Given that many of the larger telcos have paid huge license fees for 3G spectrum licenses, this makes the problem of margins and new services for 2.5G and 3G mobile users even more acute.
Maintain multiple rate sheets for different customers and products
Integrated billing software for post-paid invoice production
1. All long-haul routes are IP packet based.
Single packet-switching network, no circuit-switching in the network, except when interfacing to legacy switches.
2. Interconnect with traditional circuit-switched telco's using voice-over-ip (VoIP) gateways.
These interface to E1/T1 circuits and convert the TDM voice streams into IP packets which are sent over the IP interface. They are controlled by a special type of IP server called a SoftSwitch which can be anywhere in the IP network.
3. SS7 links are transported over IP using SS7oIP protocol wherever possible.
Reason is that both are data networks but traditional networks carry the data over expensive circuit-switched bandwidth and the IP networks carry the data over cheaper packet-switched bandwidth.
3. SS7 links are transported over IP using SS7oIP protocol wherever possible.
Reason is that both are data networks but traditional networks carry the data over expensive circuit-switched bandwidth and the IP networks carry the data over cheaper packet-switched bandwidth.
4. Interconnect with packet-switched telco's using SoftSwitching.
Here, there is no need to co-locate equipment or put in any wires, so long as both interconnect parties are on the same IP network. The interconnect can be accomplished by just programming their respective SoftSwitches.
5. All switching is controlled by SoftSwitches.
MGCP protocol is used between the VoIP gateways and the SoftSwitches.
6. All application services are controlled by Application Servers.
These talk to the SoftSwitches using SIP protocol. As this is industry standard, 3rd parties can supply a range of application servers without any danger of vendor lock-in. Also, there is no wastage of resources as in adding a PC application engine to a traditional switch.
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