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1 Agenda FastWeb: the Company The Italian Broadband Operator Services and Network Implementation FastWeb s Services FastWeb s Network Infrastructure FastWeb s Service Implementation Paolo Tavazzani oice Services Manager 2 FastWeb eb: : The Competitive Advantage FastWeb s Market Positioning! Fiber-To To-The-Home... A single high-speed fiber connection for integrated voice, Internet and video services Future proof technology!... and integration of multimedia services over IP... Second generation Internet applications: not only text and images, but also high quality interactive video, telephony and data Customer segments Businesses s Network 2 Network 2 Network 1 Network 1 Network 3 Network 1 FastWeb s integrated IP network Different networks used by... Incumbents CLECs Cable Ts FastWeb Full replacement of the incumbent oice Data / Internet ideo Services 3 4

2 s Milestones FastWeb s Success Factors Success factors in s business model: s Foundation Oct 1999 First Business Jan 2000 Consumer Services Oct 2000 od Services Jan 2001 Countrywide Service Expansion May 2001 xdsl Service Jul 2001! Innovative, future-proof Network and IT technologies Integration of multimedia services over IP Strategic deployment of Fibre Optics Infrastructures Tactical use of xdsl connectivity Open Platforms for AS implementation Multicast Services Oct 2001 Internet PPU Jan 2002 oip Class5 Service Jun 2002 ideocom Service Nov 2002 od over ADSL Mar 2003 Multicast over ADSL Aug 2003! Creative and aggressive Marketing strategy Customized, comprehensive service offerings Any Service, Any Customer! One step ahead: : constant service innovation 5 6 Service Offering Service Offering! s Marketing strategy based onto Triple Play service bundles oice Internet ideo Low Usage level High! No single killer application: the real killer application is the Service Mix Functions! Combination of Flat Rate and Pay Per Use tariff plans for matching specific Customer needs 7 8

3 Agenda FastWeb: the Company FastWeb s Services FastWeb s Network Infrastructure FastWeb s Service Implementation 9 FastWeb s Innovative Services: s T FastWeb T! Unified interface for content in all formats:! Terrestrial broadcast: RAI, Mediaset,...! Satellite broadcast : CNN, Bloomberg,...! Pay-T/Pay T/Pay-per-iew: Sky! ideo-on on-demand: OnT, RAI Click! Integrated with ideorec and Electronic Program Guide ideo on Demand offer! First od licensing agreements with US major film studios:! 20th Century Fox! Universal Studios! DreamWorks! Over 3,000 titles (up over 30% from the end of the second quarter) 10 FastWeb s innovative services: ideorec! irtual CR service: allows clients to record favorite free-to to- air T programs (RAI, Mediaset,...) with no need for a CR or tape! Easy and convenient programming: just click on the desired show, directly on your T or on any PC with an Internet connection 11 FastWeb s Innovative Services: ideo Communication for Families! Service available through standard T and telephone appliances! Full interactivity and T quality! Functional with traditional ISDN video conferencing systems and with PC-based web- cameras! Option for privacy 12

4 FastWeb s innovative services: IP PNs and B2E! Installed IP PNs grew 85 (from 255 to 340) in 3Q 2002, confirming ng FastWeb s unique accelerated pace in this market segment! 10 Mb/s (scalable) bi-directional connection among different branches and from employees premises to the corporate LAN, on FastWeb network! Service quality and security guaranteed through MPLS technology and IPSec protocol IP PNs Branch 2 FastWeb s server farm Business-to-Employee (B2E) services Agenda FastWeb: the Company FastWeb s Services FastWeb s Network Infrastructure Branch 1 Big Internet Branch 3 FastWeb s Service Implementation Other networks FastWeb: IP General Architecture Mission! Supply FastWeb customers with the ability of accessing multimedia services, by integrating on a single IP broadband band transport infrastructure Internet Data oice ideo! To Business and Network Layers IP SDH DWDM Fiber Optic Network Services Broadband POTS Transport Dark Fiber 15 16

5 FastWeb: IP MAN: General Architecture! Architectural Principles: IP Network mapped onto an IP Over Fibre architecture (Packet over SONET, Gigabit Ethernet over fibre) MPLS-based IP for PN support Diffserv-based QOS control Topology optimization for delivering the highest control over Service Levels Introduction of redundancy levels for guaranteeing maximum Service continuity Hierarchical Network Architecture Metropolitan Area Networks (MAN s) Wide Area Network (WAN)! Connectivity: Meshed connectivity among Layer 1 POPs Connectivity based onto IP over Fibre (POS STM-16)! Connectivity between Layer 2 and Layer 1 POPs: Dual-Homing connections Connectivity based onto IP over Fibre (POS STM-16) MAN: General Architecture MAN: POP General Architecture 2@STM16 Layer 1 (Core)! POP architecture based onto a two-layer scheme: Layer Layer! Goals Reduce Change Management complexity Allow for the independent evolution of backbone and access technologies and architectures Layer 2 (Concentration) 19 20

6 MAN: POP General Architecture MAN: General Architecture Links Links STM16 STM16 Router GE Router Layer Layer GE Router Switch Switch Switch Mini Concentration Layer Layer 1 Gbps Ethernet 1 Gbps Ethernet Customer Site MetroEthernet Or SDH Link STM4 /Small Business xdsl /Small Business Top/Medium Business Milan: FTTH Network Milan: FTTH Network 23 24

7 Customer HAG: Home Gateway Fibre Uplink Business HAG: the same platform for all services Network HAG LAN from FastWeb Web.DD (PCs, STB, printer) Technical room To the IP switch PABX Router POTS (oip codec) To the nearest IP over xdsl WAN: General Architecture IP FastWeb POP BBRAS Adavantages of FW Architecture! oice and data use the same network: no additional voice equipment required! Higher bandwidth and end-to to-end control of the network (higher QoS)! Same CPE as FTTx network (HAG)! Scalability: future easy upgrade FastWeb configuration Fiber link DSLAM Incumbent Central Office FastWeb DSLAM Traditional configuration Data ONU 27 Splitter oice Copper Copper oice, Data & ideo HAG Splitter DSL Modem! Over 5,600 km of local access infrastructure in key urban areas! Milan! Turin! Genoa! Rome! Naples! Bologna! Padoa! enice! Bari! 3,800 km of LD ducts! DWDM technology 28 TO MI R PD E RE BO BO GE GR RM RM CA NA NA BA

8 Agenda FastWeb s IP Data Services Customer C FastWeb: the Company Customer A Site 2 Big Internet FastWeb s Services Customer B FastWeb s Network Infrastructure FastWeb s Service Implementation Customer A Site 1 Intranet Internet Extranet Customer D Customer A Site oice services: : challenges FastWeb s oice support strategy! oice services are still the benchmark! are pleased with multimedia services, but basic telephony services are expected to be delivered with 100% availability Toll quality! is committed at delivering at least the same quality as the incumbent s traditional POTS service! Telephony services implemented by overlaying an H.323 Infrastructure onto the IP-based transport! H.323 Infrastructure including Gateways Routers (Business ) Home Gateways ( ) Gatekeepers Softswitches SCP Unified Messaging platform 31 32

9 s oip Architecture FastWeb s H.323 oip Services EDGE ZONE SOFTSWITCH ZONE ACCESS ZONE CPE ZONE Rome GTWY DGK ISUP GTWY IP BACKBONE ACCESS GK GTWY PSTN/PLMN Milan H.323 SCP ccs IP SOFTSWITCH GTWY DGK ACCESS GK ISUP GTWY Genoa H.323 Softswitch! Call Control: Routed Mode Gatekeeper! Basic Telephony Services! Supplementary Services CLIP/CLIR Call barring Call forwarding unconditional Call forwarding on busy Call forwarding on no reply Call Hold Call Waiting Additional Call Offering! CDR Generation! Lawful Interception H.323 SCP! IN Services 800 Services PN Services oice Services oice Services Gateways SoftSwitch "On Net Traffic "Off Net Traffic PSTN/PLMN CCS PSTN/PLMN CCS TDM Switch TDM Switch Gatekeepers 35 36

10 Class 5 SoftSwitch oip Services: Codecs! Standard! Bit rate (kbps)! MOS! Complexity! Typical delay (msec( msec) G ,3 1 0,125 G ,0 10 0,125 G ,0 50 0,625!Distributed architecture!h.323 signalling!55 nines reliability!5,000,000 Calls/day!Customer Self-Provisioning G.729A G ,3/5,3 4,0 3, , ideo over IP services ideo over IP services! Based onto multiple video distribution policies ideo on Demand Services (Unicast( Unicast) Broadcast ideo Services (Multicast)! od and Broadcast ideo Services based onto MPEG2 over IP streams! Each stream requires 4 Mbps on average! Service elements ideo Servers Registration and validation of Customer accesses and service requests ideo Pumps Providing video streams towards client stations ideo Station Client device with extended service access and stream management capabilities 39 40

11 ideo over IP services: : od ideo over IP services: : Broadcast ideo ideo Pumps ideo Server ideo Request ideo Pumps ideo Server ideo Output Mini Mini Mini Mini ideo Request ideo over IP services: : Broadcast ideo ideo Pumps ideo Server ideo Request Mini Mini ideo Output 43

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