Building the Foundation for Next-Generation Networks

December 5, 2004

For decades, telecommunications meant one thing: the telephone. But the networks that were built for the phone are no longer adequate for all the communications options of the Information Age. As a result, telecommunications companies are migrating from managing and maintaining multiple networks for each service they offer to delivering all services on a single Internet Protocol (IP)-based network. But the journey is not easy. That is why Cisco Systems is developing the technology carriers need to create IP Next-Generation Networks (IP NGNs). These new networks allow telcos to offer a new array of profitable services while lowering their operational costs and boosting revenues.

News@Cisco spoke with Mike Volpi, senior vice president of Cisco's Routing Technology group, about how Cisco is creating the tools, equipment and technology to help telecommunications companies transform their networks for the Information Age.

What is an IP Next-Generation Network?

Mike Volpi: Though it's a mouthful, it is in essence a very simple concept. IP NGNs refer to the idea of one network that can not only cost-effectively deliver and manage all the voice, video and data communications options available today, but one that can also adapt and grow to handle any new communications options that will inevitably evolve. An IP Next-Generation Network harnesses all the attributes of IP technology and integrates them with routers and switches designed with the sophistication, robustness, flexibility and intelligence necessary for running the world's largest public telecommunications networks. The goals of telecommunications companies are the same as they are for other businesses. They want to reduce costs while increasing revenues. This, however, is particularly challenging for telcos these days because of their existing networks. The telecommunications business is radically changing. So our customers are looking for new networks that can help them meet their basic business goals while also making it as cost-effective as possible to transition their old network operations to a new network infrastructure. Cisco is addressing this customer need with IP NGN innovations so telecommunications companies can evolve both their networks and their businesses as the possibilities of the Information Age continue to unfold.

Why should telecommunications companies look to Cisco for help in building their next-generation networks?

Mike Volpi: It is clear that IP-based networks are the way of the telecommunications future. As a company, Cisco was founded on IP. In fact, we have it in our DNA so IP isn't something new for us as it is to some other major vendors. We have the most experience in deploying IP-based services and IP-based networks with more than 21 million routers installed worldwide. And we have the widest portfolio of equipment to address virtually any deployment goal. Just as importantly, we have the research and development resources to create the networking technologies our customers will need for the future. Over the past couple of years, have invested over $1.6 billion in R&D for improving IP networks. Such commitment is simply unmatched in the industry.

What are some of the specific steps Cisco has taken to develop IP NGNs?

Mike Volpi: Cisco is leading the industry in delivering innovative IP technology to drive network convergence and help customers significantly reduce infrastructure costs. First, we are developing the Service Exchange Framework. To achieve true service convergence, telecommunications companies must be able to operate, bill and manage a service over a range of access mediums. Cisco and partners are developing technology that allows telecommunications companies to exert more control over their network, from the policies that govern customer access and to the prioritization of applications that run across the network. As part of that effort, Cisco recently acquired P-Cube, a leading developer of IP service control platforms. Through the acquisition and additional engineering efforts, we have created the Cisco Service Control Engine (SCE) 1000 and the SCE 2000, our first components to the Service Exchange Framework. These are programmable hardware devices for application and user-level control, providing packet inspection and analysis of subscriber and application usage, as well as integration with operational and billing systems. These service controls let carriers manage new applications, provide subscriber and application-aware security, adjust pricing, offer application-level quality-of-service (QoS), and track transactions by content type and subscriber. As another component of the Service Exchange Framework, Cisco also acquired Dynamicsoft to help wireless and wire line telecommunication companies quickly develop and deploy "subscriber-aware" IP communications services using voice, video, messaging, and other capabilities.

We are also developing IP NGNs with our router expertise. Earlier this year we released the Cisco Carrier Routing System (CRS-1), the world's most advanced and powerful router system for IP communications. The Cisco CRS-1 is uniquely designed to deliver continuous system operation, service flexibility and extended system longevity. And this month we announced a new extension to the CRS-1 product family, a smaller version of the CRS-1, the Cisco CRS-1 8-Slot Single-Shelf System. This new version of the Cisco CRS-1 can help telecommunications companies scale their networks more incrementally, starting at 640 gigabits per second (Gbps) bandwidth capacity and up to 92 terabits per second (Tbps) capacity. Both versions of the CRS-1 provide continuous system operation during maintenance and upgrades. The modular design of its operating system, the Cisco IOS XR, provides fault containment and automatic fault recovery so that processes can be started, stopped and restarted without human intervention. Also, because of extremely advanced custom silicon microprocessor technology, the CRS-1 can separate traffic and network operations on a per service or per customer basis within the system.

How is the market responding to the development of the IP NGN?

Mike Volpi: We have been enjoying great success, since the industry realizes the value of IP-based networks and the need for a new network model. Telecommunications companies and research organizations worldwide are adopting our state-of-the-art CRS-1. Softbank BB Corp. (operators of Yahoo! BB in Japan), the National Institute of Informatics' SuperSINET research network in Japan, and the Pittsburgh Supercomputing Center have chosen the CRS-1 as a key component for building out their highly advanced IP network infrastructures. Also, fourteen major global telecommunications companies are now testing and field trialing the CRS-1. And China Telecom selected Cisco as its primary equipment provider for its business networking services. The network, known as CN2, will connect more than 200 cities and provide premium offerings to corporate customers throughout China. Cisco will also provide equipment for China Telecom's backbone network in six provinces. Over the past six months, China Telecom has awarded contracts to Cisco valued at more than $100 million. In addition to building and acquiring innovative technology to address IP NGNs, we're also partnering. Fujitsu, Japan's leading system integrator and one of the world's foremost suppliers of digital technology, joined Cisco earlier this month in a strategic alliance to sell our CRS-1, Catalyst 6000 and Catalyst 4000 routing and switching products.