NTT s challenge: create new business on the NGN

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1 NTT s challenge: create new business on the NGN Takashi HANAZAWA Senior Vice President Senior Executive Director, Research and Development Planning Department NIPPON TELEGRAPH AND TELEPHONE CORPORATION 2007/9/6Geneva, 10 September

2 (1) Penetration of optical access in Japan Optical access is being promoted so aggressively that the number of FTTH subscribers is growing rapidly and the number of DSL subscribers has now gradually begun to fall. 20 Subscribers (millions) CATV (Internet users) DSL FTTH Official data* forecast 0 3/2002 3/2003 3/2004 3/2005 3/2006 3/2007 3/2008 1

3 (2) Basic concept of NTT s next-generation network (NGN) NTT s NGN is based on IMS architecture in accordance with the NGN recommendations being developed in ITU-T. NTT is building the NGN with optical access networks. Layer structure of NGN SNI Applications / management Broadcasting, video delivery Portal Personal, etc. Information searching, sharing Application service platform Service control The interfaces to the application layer has been disclosed, to enable a variety of application to be provided Core network Edge node Access network Core node Managed network that provides for QoS and security UNI Wireless WiFi Information appliances Optical fiber PC HGW STB TV Optical access networks for fixed line 2

4 (3) Open network The NTT Group cannot by itself make the most effective use of the NGN. Open interconnection and Collaboration Application server (VoD, IP broadcast, applications, etc.) SNI NGN NNI [Interactive comm.] [Unicast comm.] [Ethernet comm.] Next-generation IP network Other carriers (including NTT regional carriers) (*Note) ISP UNI UNI PSTN/mobile carriers (via PSTNs of NTT regional carriers) User of IP communication User of Ethernet *Note: Interface specs that are the same as those for the current interconnections with ISPs 3

5 (4) Roadmap Fiscal year Steps in introducing the NGN STEP 1 Field trials STEP 2 Provide optical access to 30M users (End of fiscal 2010) STEP 3 Core network Construct transit network - deploy core nodes - deploy optical wavelength transmission equipment Construct access networks deploy edge nodes Seamless integration with mobile network Service control functions Deploy service control functions IMS deployment (conforming to ITU standards) Service development Trial <For limited regions and users> Full-scale development of next-generation Broadband Internet access IP telephony Multicast transmission for video distribution Bi-directional video (data) communication Ethernet, etc. 4

6 (5) Change in revenue structure Revenue from traditional networks, such as the PSTN, is falling. This fall has not yet been made up for by revenue from broadband businesses. It is necessary to change the revenue structure by expanding revenue from Broadband provided on the NGN. (Billion US$) Consolidated revenue of NTT Group Mobile Voice Related Services IP/Packet Communication Services Fixed Voice Related Services Revenue from broadband market 5

7 (6) Business models for exploiting the NGN It is important to provide an application service platform that allows many service s, including not only the NTT Group but also small / medium s, to provide, securely and efficiently, application that are appropriate for specific business models (B to C/B, B to B to C/B, etc.). Service provided by NTT Group Services provided by other service s Model B(NTT) to C(consumer) B(NTT) to B(enterprise) NTT/ Other NTT/ Other B( Platform B( ) to Platform ) toother service B( ) to B( Other service B( ) toother service ) to C(consumer) C(consumer) B(enterprise) Other service B( ) to B(enterprise) End user C C C B B B C C C B B B C C C B B B Service Other service Other service Other service Other service Structure Platform NTT Group NTT Group NTT Group/ Other Platform Provider NTT Group/ Other Platform Provider Application service platform SNI Network NGN 6

8 (7) Priority business areas The application we will emphasize are that are related to for security in daily life, business and content. General trends Priority application Rise in interest in security Daily life-related Use of ICT to boost business productivity Business-related Shift to digital content Content-related 7

9 (8) Daily life-related (for home use) Provide home control/monitoring through collaboration between information appliances and the NGN to increase the security and real-time processing capabilities of various applications, thus adding value to home appliances and allowing service s to expand their businesses. B Other service Provide service to users C User Value added by NGN B NTT: platform Video camera TV [Examples] Gas companies Security firms Household equipment manufacturers, etc. Encryption, etc. Authentication NGN Home Controller(*) Video recorder Monitoring camera Audio equipment * OSGi compliant 8

10 (9) Business-related The NGN makes it possible to build secure and high-quality enterprise information systems. Life-size images give a sense of face-to-face communication. High-quality images increase the sense of reality NGN High-definition videoconference High-definition videoconference room This videoconference, with 3 displays, was achieved using the NGN-guaranteed 15Mbps service. 9

11 (10) Content-related The transition to digital information and content is increasing the opportunities to expand video-related business. 1. Digital video content eliminates the distinction between telecommunication and broadcasting. 2. The emergence of posting-type video sharing sites is expanding the opportunities for video-based businesses. 3. Marketing using metadata and secondary use of content has commenced. 4. Searching and navigation of video are emerging as business tools. 5. Everyday scenes on the street will be turned into content. 6. Video content can be selected and provided according to context. 10

12 (11) Concluding remarks NTT s challenge: create new business on the NGN The NTT Group will collaborate with partners in different industries to seek to create new business opportunities using the NGN. Note: This presentation reflects the personal views of the presenter and is not necessarily expressing NTT s official position. 11

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