First things first, I would suggest the
Communication Service Provider (CSP) should critically analyze the book
value of the existing legacy system, spare capacity availability, vendor
support availability, Next Generation Network (NGN)/Ethernet transport
feature availability, upgrade costs and operational costs like space and
power. As long as the existing system addresses the requirement cost
effectively in short term and mid term, I would suggest that the CSP
continue with the legacy system with a clear replacement/migration plan
for long term.
I'll now list 2 important highlights below to show you why I would replace an existing legacy (ex:- SDH) network with a Carrier Ethernet (CE) network.
(1) *Native* support of cost effective and ubiquitous Ethernet interface/service/transport
As you know the current and future traffic on CSPs are more towards IP/Ethernet and this requires that CSP
1. provide "Ethernet interfaces" to customers,
2. transport/provide "Ethernet Services" like MEF E-LINE, E-LAN, E-TREE and E-Access,
3. build "Ethernet based transport networks" like Carrier/Metro Ethernet MANs/WANs.
If you are to transport Ethernet over SDH, you require EoSDH capabilities on your SDH platforms. On the other hand, for you to transport TDM over Ethernet, you require Circuit Emulation Service over Packet Switched Networks (CESoPSN)/Structure Agnostic Transport over Packet (SAToP). Since the trend is now to move from legacy (TDM) to NGN (IP/Ethernet), you will see more IP/Ethernet than TDM in the future. So it's logical to have CE with TDMoEthernet, rather than having SDH with EoSDH. Finally all will converge to CE.
(2) Vendor support
As these trends happen in the CSP ecosystem (CSPs, OEMs, SDOs etc.), the vendors are also discontinuing legacy systems and move to NGN based technologies like CE. This will make the cost of legacy systems high and cost of NGN systems low due to the economies of scale. This will also made the support (AMC- Annual Maintenance Contract) charges for legacy systems be also high.
I'll now list 2 important highlights below to show you why I would replace an existing legacy (ex:- SDH) network with a Carrier Ethernet (CE) network.
(1) *Native* support of cost effective and ubiquitous Ethernet interface/service/transport
As you know the current and future traffic on CSPs are more towards IP/Ethernet and this requires that CSP
1. provide "Ethernet interfaces" to customers,
2. transport/provide "Ethernet Services" like MEF E-LINE, E-LAN, E-TREE and E-Access,
3. build "Ethernet based transport networks" like Carrier/Metro Ethernet MANs/WANs.
If you are to transport Ethernet over SDH, you require EoSDH capabilities on your SDH platforms. On the other hand, for you to transport TDM over Ethernet, you require Circuit Emulation Service over Packet Switched Networks (CESoPSN)/Structure Agnostic Transport over Packet (SAToP). Since the trend is now to move from legacy (TDM) to NGN (IP/Ethernet), you will see more IP/Ethernet than TDM in the future. So it's logical to have CE with TDMoEthernet, rather than having SDH with EoSDH. Finally all will converge to CE.
(2) Vendor support
As these trends happen in the CSP ecosystem (CSPs, OEMs, SDOs etc.), the vendors are also discontinuing legacy systems and move to NGN based technologies like CE. This will make the cost of legacy systems high and cost of NGN systems low due to the economies of scale. This will also made the support (AMC- Annual Maintenance Contract) charges for legacy systems be also high.
But, according to countries regulator [3], as at March 2012, the number of fixed lines in Sri Lanka (including CDMA) is 3.6 million. However, we need to keep in mind that big corporates use hundreds of lines per location. Therefore, we cannot use 3.6 million for the calculation.
The point however is, 78% of the households/population are rural. To reach this we have to go with wireless. This is quite evident from the figures in [3], where the mobile penetration is 91% while the fixed line penetration is 18% (approx.). This 18% is actually the saturated figure of urban and sub-urban. But when the rural areas develop (when the demand and affordability increases) the 18% will increase as explained in my previous post. In [3], the Internet penetration is also high with mobile (if calculated, 4% approx.), whereas for fixed it's only 2%, if calculated. Obviously the BB is also will follow the same percentages.
On the other hand, the 78% includes large number of Small and Medium Enterprises (SMEs), which are the main contributors to the country’s economy. For them to grow and the country to grow, the SMEs need Information Communication Technology (ICT) facilities. So the operators and the country have a great challenge to provide them the required services. Operators need to invest cautiously making sure they get positive Return-On-Investment (ROI) at the same time increase the footprint of their service coverage.
[1] http://www.statistics.gov.lk/
[2] 202.11.2.113/SEBM/ronso/no3_4/aruna.pdf
[3] http://www.trc.gov.lk/images/docs/statis_March_2012.doc