Home Latin America 2002 Brazil Network Advances with Next Generation Tech

Brazil Network Advances with Next Generation Tech

by david.nunes
Christof WahlIssue:Latin America 2002
Article no.:3
Topic:Brazil Network Advances with Next Generation Tech
Author:Christof Wahl
Title:President
Organisation:Siemens ICN Wireline Communications
PDF size:20KB

About author

Not available

Article abstract

Brazil is evolving steadily despite the global telecom downturn, due largely to the government’s “information society” initiatives fostering Internet development and deployment of new services. Next Generation Network (NGN) technology and democratization of access is the key to solving some of Brazil’s most pressing social and economic problems. The transition to NGNs will benefit operators by reducing operating expenses and facilitating new revenue- generating services. Systems will be needed to optimize the use of existing infrastructure while the transition progresses.

Full Article

Brazil’s three main carriers have been stocking up on Next Generation Network (NGN) equipment. They intend to implement Virtual Trunking, Carrier Class Dial-in, Packet Local Switching, Voice over Broadband, Signaling Overlay Network. To some this might seem premature, but in fact it is precisely what is called for to stabilize what is evolving as a very lucrative telecoms market, second only to the US and Canada in the region. “Brazil is evolving very steadily in spite of a global telecom industry malaise.” Brazil is evolving very steadily in spite of a global telecom industry malaise. This is largely the result of government intervention comprising so-called “information society” initiatives that are supported by the various vendors and the telecoms ministry in Brazil. The initiatives include content programmes to foster the Internet development and user friendliness and the deployment of new services and the general digitalization of the entire network. Indeed, the percentage of digital lines is now higher than 95%. Licences recently obtained by carriers to operate in the Brazilian market include one for Telefonica, which obtained a licence to provide long- distance service in Brazil (DDD) beginning in July 2002. Permission to offer this service was granted to Telefonica contingent on the “universalization” goals set by the national telecommunications agency (ANATEL ). AT&T obtained a licence from ANATEL to provide domestic and international communications services in July 2002. AT&T was also licensed to provide public switched telephony service in Sao Paulo, Campinas, Rio, Belo Horzonte, Brasilia, Curitiba and Porto Alegre as of July 17, 2002. “Next Generation Network technology is vital in terms of the techno/social information evolution that Brazil is undergoing.” Brazil’s ILECs (incumbent local exchange carrier) now provide access to all social classes, but unfortunately, as in the worldwide telecoms industry, they are now contending with network overcapacity and bad debts. “Next Generation Network technology is vital in terms of the techno/social information evolution that Brazil is undergoing. The democratizing of access is the key to solving some of Brazil’s most entrenched economic problems, i.e. socio-economic gaps, “said Reynaldo Makoto Goto of Siemens. “By decreasing the hegemony of the ruling minority class on information, a major part of our society should participate in the new economy based on the knowledge.” By the same token, part of the government’s strategy in achieving this and similar goals was the creation of ANATEL in 1997, which coincided with the privatization process of the market. This year Brazil will pass a new market milestone, with regard to its liberalization of the telecommunications market. “Market liberalization has, and continues to present, new investment opportunities for the existing carriers as well foreign investors in the PSTN [public switched telephone network], “according to Mr. Goto. “Unfortunately, [creating] competition in the local call market is still big challenge for ANATEL .” Moreover, Amadeu de Paula Castro Neto, Interim Member of Anatel’s Board of Directors, and José Gonçalves Neto, Anatel’s General Manager, Competition and Universal Service believe a very the important step in the initiation of NGN deployment has already been undertaken. “A fund for universal telecoms services (FUST) was established. The fund, financed in part by a 1 per cent tax on the gross revenues of telecommunications service providers and a series of other sources defined by law, is charged with the task of financing the growth of telecommunications services that would not, otherwise, be economically or commercially viable. “FUST will provide resources for schools, public health facilities, small rural communities and, as well, a host of other points where telecommunications facilities can best serve the interests of society.” And thirdly, “regulations have been put in place to optimize the use of existing telecommunications services and networks, particularly the existing fixed-telephony system, for access to the Internet and other digital information backbones. “In this regard, the tendency has been to encourage the growth of ‘non-geographic area codes’, which cost the same to access no matter where in the country one dials from, and to promote rate models less susceptible to distance factors.” This is a very important factor in a country that is the most populous in the region and is only slightly smaller in area than the United States. NGNs “NGN development in Brazil is very important to foster new services that will generate revenue growth for carriers, reduce costs and optimize network infrastructure. In fact their survival in some cases depends on these factors,” according to Makoto Goto. The key for carriers is to launch new services yet reduce costs at the same time. Brazil is no different. In fact this rule of thumb may even be a bit more important in Brazil because it is in such a crucial stage in its development. “The new network structures reduce the number of network elements, lower the operating costs and open up new sources of revenue.” Two years after the introduction of the first IP (Internet Protocol) platforms for public networks, the picture that emerges is a positive one. The new network structures reduce the number of network elements, lower the operating costs and open up new sources of revenue. IP structures look significantly leaner than the typical TDM (time division multiplexing) networks. In a nutshell, they offer the dream figures of 80/60/20, that is to say 80 per cent fewer network elements, 60 per cent lower operating costs, and 20 per cent more sales. “A conventional TDM network consists of three hierarchical levels: local exchanges, regional exchanges, and transit exchanges.” The reduction in the number of network elements by up to 80 per cent may seem dramatic, but an example clearly shows how this slimming-down process is achieved. A conventional TDM network consists of three hierarchical levels: local exchanges, regional exchanges and transit exchanges. For a network with 50 million access lines and an average exchange size of 25,000 ports, this produces the impressive figure of 2,000 local exchanges. These are then typically aggregated into 250 regional exchanges and eventually 60 transit exchanges. To monitor and control its switching performance, each of these exchanges has its own control unit and a separate database for subscriber administration. By contrast, an IP-based voice network offering the same level of performance as the TDM network given in the example requires far fewer switching units because a ‘flat’ network topology is substituted for the hierarchical approach. Transit and regional exchanges are dispensed with entirely in this model. The local exchanges are replaced by what is known as an ‘access gateway’ which converts the voice traffic of the existing line units into IP-based voice packets and can typically control up to 400,000 ports. The TDM network described above could thus be set up with something like 125 access gateways. As well as the sharply reduced number of control units, the IP-based network solution also offers the option of a central database, which greatly simplifies the administration of subscriber access data. Just as impressive are the up to 40 per cent lower operating costs of IP networks compared to their TDM counterparts. These cost cuts are produced almost as a matter of course by the reduction in the number of network elements and the associated personnel costs. “Cost reduction is due to the fact that carriers are no longer administering two separate networks with differing infrastructures, but one integrated IP system.” The overall cost reduction is due to the fact that carriers are no longer administering two separate networks with differing infrastructures, but one integrated IP system. “The marketing of new multimedia applications which can be offered in addition to the standard portfolio allows sales to be increased by 20 per cent or more.” But falling costs are not the only benefit carriers can look forward to. The marketing of new multimedia applications which can be offered in addition to the standard portfolio allows sales to be increased by 20 per cent or more. Web conferencing or ‘Click to Phone’ applications are examples of such business options that will soon be the standard in Brazil. This strategy for NGN has several vital benefits for service providers as it improves operating results by reducing OPEX (operating expense) due to Network Convergence, introduces new revenue- generating services, increases ARPU and moves current networks gracefully into an all-IP world. It is the IP Network vision brought into a practical and implementable form. Conclusion As carriers look to evolve from their TDM voice networks to packet- based multimedia networks, solutions are going to be the necessary to help service providers facilitate this migration. “The transition to packet voice will not happen overnight. Carriers will require solutions that allow them to leverage their legacy infrastructure while transitioning to a new packet based infrastructure,” according to Telecommunications Industry Analysts, RHK.

Related Articles

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More