18281_Ethernet_WAN_an_tcm228-182401635.pdf

APPLICATION NOTE

Improving Time to Market and Return on

Investment with Ethernet WAN Services Delivery

Leveraging Multiservice IP Networks to Enhance

the Value and Velocity of Ethernet WAN Service Offerings

Table of Contents

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Making a Successful Migration to Ethernet: Focus on Service Value . . 2

Ethernet Service Value: Migration from MAN to WAN . . . . . . . . . . . . 3

Service-Enabling Technologies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

All Ethernet Access . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Ethernet Access and ATM Access (Fiber, DSL, etc.) . . . . . . . . . . . . . . . . . . . . . 6

Ethernet and Frame Relay Access . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Enhanced Ethernet WAN Service Example:

“Ethernet-Enabled” Frame Relay . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Why Alcatel? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Improving Time to Market and Return on Investment with Ethernet WAN Services Delivery

Introduction

Over the past several years, Ethernet has increased in popularity

as a service in the metro, due to its perceived operational

simplicity and low cost per bit. Enterprise information tech-

nology (IT) departments have extensive experience with and

knowledge of the Ethernet protocol and its attributes, having

deployed it as a LAN technology for more than 25 years.

7750 Service Router (SR) can be deployed. By combining

all products, service providers obtain complete Ethernet

coverage across their networks with the added ease of end-to-

end management by the Alcatel 5620 Management portfolio.

This application note describes how a multiservice IP infra-

structure and its customer attachments can be leveraged to

obtain a competitive advantage in the delivery of Ethernet

services. This element of the Alcatel Ethernet WAN Services

solution enables incumbents to enter the Ethernet market

quickly with a service spanning a wide geographic area.

It adheres to the multiservice business case that aligns

incremental revenue generation with incremental investment.

It includes Ethernet service interworking with established

private data services. Interworking ensures that revenues

and proﬁts generated from wide area data services — now

including Ethernet — continue to grow by helping service

providers control the rate and timing of service migration.

Finally, by offering a high value migration service, service

providers allow enterprise customers to exploit the

advantages of Ethernet within existing frame relay VPN

services, thereby reducing customer churn.

Competitive local exchange carriers (CLECs) in particular

have capitalized on the enterprise’s perception of Ethernet

and deployed products from traditional LAN equipment

vendors in dense metro areas. Although this approach has

allowed carriers to offer their customers high bandwidth

(1 Mb/s to 1 Gb/s) connections at a much lower price than

established carrier services, these services have typically

been best effort due to platform limitations.

Early deployments of metro solutions have had to contend with

limitations in operations, administration and maintenance

(OA&M) capabilities, network availability and resiliency, and

service management. Incumbent service providers who sought

to compete with CLECs realized that this model for metro

service delivery could neither scale to the level they needed

nor deliver the platform robustness they required.

Figure 1 - Alcatel Platforms Deployed for End-to-End Ethernet

Coverage

To address the challenge of carrier gradeness in Ethernet

products and services, the industry has developed new stan-

dards and technologies. Alcatel has implemented these in an

Ethernet WAN Services solution optimized for high value

Ethernet VPN service delivery. The solution offers ﬂexible

network implementations to achieve the unique business

objectives of each carrier. For example, in geographical

regions where slow growth and overall small penetration is

expected, the solution allows service providers to leverage

their existing Alcatel multiservice networks to offer Ethernet

connectivity. This includes the Alcatel 7470 Multiservice

Platform (MSP) and the Alcatel 7670 Edge Services Extender

(ESE), both supporting 10/100 Ethernet connectivity. It also

includes the Alcatel 7670 Routing Switch Platform (RSP), a

multiservice IP platform supporting Gigabit Ethernet (GigE)

connectivity over IP/multiprotocol label switching (MPLS) and

asynchronous transfer mode (ATM) networks. In geographical

regions where dense Ethernet penetration is expected, the

Alcatel 7450 Ethernet Service Switch (ESS) and the Alcatel

5620 Management Portfolio

10/100/

1000

10/100/

1000

10/100/

1000

GigE

7670 RSP/

7670 ESE

7450 ESS

7670 RSP

Multiservice

7470 MSP

10/100

ALCATEL 1 >

Improving Time to Market and Return on Investment with Ethernet WAN Services Delivery

FROM MULTISERVICE WAN TO MULTISERVICE IP

“In 2004, frame relay and ATM will generate more than $25 billion in revenue for service providers worldwide. In the broad market for private

WAN data services, FR/ATM represents Tier 1 carriers’ largest and most proﬁtable revenue stream.” — (The Yankee Group, August 2004)

There is no question the continued support

of existing data services is an essential part

of any successful service evolution strategy;

however, while existing data services deliver

the bulk of today’s service revenues, carriers

are planning for tomorrow, and the future is

all about IP and Ethernet.

new IP and Ethernet services and what should

be utilized to support continuous demand

for existing services. The traditional approach

of deploying new network overlays for new

services leads to over-investment and redundant

operational costs. Solving these business and

networking issues are the basis of multiservice

IP, the Alcatel solution that enables a staged

migration of existing multiservice WANs to

MPLS. By leveraging their intrinsic value,

service providers create a converged

network that:

• Allows IP and Layer 2 services to

co-exist and interwork effectively

• Expands existing service range and

competitiveness and improve bottom

line contribution

• Scales to support a range of customer/

network sizes

• Improves utilization of existing assets

without building more overlays

At the heart of Alcatel’s multiservice IP value

proposition is this: improve time to market

and return on investment by leveraging the

existing multiservice infrastructure to offer new

IP and Ethernet services without compromising

existing Layer 2 business. The proven and

carrier grade Alcatel 7670 RSP and the

Alcatel 5620 Network Manager (NM)

provide the underlying network elements to

deliver multiple new and existing services

reliably and concurrently.

Competition is demanding service innovation

with new IP virtual private network (IP-VPN),

Etherent, voice over IP (VoIP) and multimedia

services. To meet the market demand for these

new services, service providers have made

the strategic decision to migrate their wide

area networks toward a converged, MPLS-

based network. Choosing a migration path,

however, must be done with care. For example,

carriers must decide what network will support

Making a Successful Migration

to Ethernet: Focus on Service Value

The successful migration to Ethernet depends on more than

carrier grade features. For example, Ethernet requires ﬁber

for connectivity between customer premises equipment (CPE)

and the service provider’s point of presence (PoP). While ﬁber

installation continues at a rapid pace, availability of ﬁber in

the access infrastructure is not ubiquitous. Many enterprise

customers have sites that are located outside the ﬁber reach.

As a result, they access carrier services over copper loops via

frame relay, ATM, time division multiplexing (TDM), digital

subscriber line (DSL) and other technologies. Furthermore,

some enterprise sites do not require the higher bandwidth

capabilities that Ethernet provides. Even if bandwidth require-

ments to these sites increase, Ethernet may not be the most

economical access technology to meet the demand as the

beneﬁts of changing may not offset the cost of new CPE,

installation and temporary business disruption.

Thus for the foreseeable future, it is reasonable to think

that many of the service provider’s enterprise customers

will choose to maintain their existing services, increasing

access rates within the given service as required. This is a

reasonable assumption given the carrier business imperative

to manage revenue cannibalization and the desire to maintain

balanced tarifﬁng between emerging and established services.

Nevertheless, Ethernet technologies and product implementa-

tions have become more carrier grade, enabling service

providers not only to deploy larger metro networks, but also

to enhance their value by interconnecting them across the

wide area network. Incumbent carriers are ideally positioned

to offer intermetro services — called Ethernet WAN services

— because they can leverage their in-place, fully operational

multiservice WANs to provide connectivity. In addition, by

interconnecting the metro aggregation network with a multi-

service IP network, carriers are in a position to manage

cannibalization by offering enhanced service value to new

> 2 ALCATEL

Improving Time to Market and Return on Investment with Ethernet WAN Services Delivery

and existing enterprise customers. Speciﬁcally, service

interworking allows both Ethernet and existing multiservice

IP-attached customers to access the same virtual private

network (VPN) service. Ethernet joins frame relay as another

access option to Layer 2 VPNs, in this case for sites that need

high capacity access and easy bandwidth selection.

They have the same basic characteristics as their intrametro

counterparts, but leverage carrier-grade WAN technologies

and SLAs to provide intercity/interstate connectivity. Further-

more, internetwork connectivity, in the form of service and

network interworking, enables Ethernet and established

business private data networking services (e.g., frame relay,

cell relay, TDM, DSL) to become part of the same Layer 2

VPN service.

Ethernet Service Value:

Migration from MAN to WAN

Initially, metro Ethernet networks were suitable for best-effort

delivery only, restricting the service offering to dedicated

Internet access (DIA). Intrametro point-to-point services

followed, providing dedicated point-to-point connectivity

between two sites within the metro. Internet access could be

supported over the same Ethernet port via a separate virtual

LAN (VLAN) ID. As platforms evolved and interoperability

increased, service providers became more comfortable

deploying a switched (multipoint-to-multipoint) intrametro

service based on the bridging capabilities of metro equipment.

This service interconnected multiple intracity locations in a

dedicated Layer 2 VPN.

Figure 2 - Ethernet Services in the Metropolitan Area Network (MAN)

Internet

Gateway

Router

CPE

Metro

Figure 2 illustrates DIA, intrametro point-to-point and

intrametro multipoint-to-multipoint connectivity.

CPE

Today, metro technology has evolved to enable expansion of

Ethernet service reach beyond the MAN and across the WAN.

Ethernet WAN Services include point-to-point (“Virtual Leased

Line”) or multipoint (“Virtual Private LAN Service”) services.

Virtual Private LAN

Ethernet DIA

Intrametro

Point-to-Point

CPE

ETHERNET SERVICES INNOVATION

One of the most active areas of innovation

in telecommunications over the last several

years has been the development of new

solutions for delivering VPN services over

MPLS technology. This includes virtual private

LAN service (VPLS) and virtual leased lines

(VLLs), both MPLS-based VPN technologies

optimized to deliver multipoint and point-to-

point Layer 2 VPNs with Ethernet access

respectively.

interconnects a customer’s sites, as if they

were connected to the same LAN. A full

mesh of MPLS label switched paths (LSPs) is

established between the provider edge (PE)

devices within the service provider’s network,

carrying the pseudowires that interconnect

the VPLS service instances on each of the

PE devices. Once a VPLS service has been

conﬁgured, trafﬁc can be sent over the

service as in a standard LAN environment —

broadcast, multicast and unknown media

access control (MAC) address trafﬁc is

simply ﬂooded on every pseudowire

associated with the VPLS service. Because it

uses MPLS, the service is highly scalable for

intermetro applications across the wide area.

With VLLs, a point-to-point connection is

established between two sites, allowing the

transfer of Ethernet service frames between

them across the service provider’s network.

Ethernet VLL service over MPLS is analogous

to a frame relay permanent virtual circuit

(PVC) service between two sites.

With VPLS, a Layer 2 VPN can be built

over a service provider’s network that

ALCATEL 3 >

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