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New Optical Transport Network Strategies That Cut Costs
Operators can deliver higher-capacity services more quickly and simplify their network infrastructures while controlling CAPEX/OPEX costs


relocate Metro Hub Metro Aggregation Metro Network Metro Hub Core Gateway Regional Network

Internet Mobile VPN

Long Haul Network

Typically the network comprises three major segments: metro, regional and core or long-haul

Subscribers’ insatiable appetite for broadband services is prompting operators around the world to invest heavily in the network changes necessary to satisfy that demand. They are transitioning their services from SONET/SDH technology to Ethernet technology. To deliver multi-service offerings, wireless backhaul and business services, operators are deploying optical transport networks, which use Ethernet interfaces to transport IP traffic. They also are increasing capacity in their access networks to provide faster throughput rates, not only to deliver high-speed Internet connectivity but also to support newer, bandwidth-intensive technologies. These include high-definition video, 10 Gbps passive optical networks (PONs), high-speed downlink packet access-plus (HSDPA+) and long-term evolution (LTE). As operators strive to satisfy subscriber demand and deliver better quality of experience (QoE), they are looking for networking solutions that can help them control the costs associated with these improvements. In response to that requirement, a new network

design has emerged, one that leverages access growth rates and the latest innovations in transport networking to help operators achieve four critical objectives:
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reach more customers cost-effectively, offer more higher-capacity services, simplify their infrastructures and strengthen their profit margins.

Cost Trade-Offs in Today’s Transport Networks
In the past, operators have delivered most services at 2 Mbps (E1) access speeds. They have established several steps within their metro networks to groom and aggregate multiple E1 circuits into a transport wavelength. Operators typically have deployed STM-16 (2.4 Gbps) or STM-64 (10 Gbps) add/drop multiplexers (ADMs) to handle that traffic.

Metro Aggregation

Video Internet Mobile

Metro Hub

Core Gateway Metro Hub
Requires Transport All the Way from the Core


Enbles “local” Service of some traffic

Distributed Proposition

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Potential savings?

Aggregation routers close to the network edge can save costs

See for more information about Tellabs Solutions

See tellabs. are creating transport networks with dynamic optical networking capabilities and higher bit-rate transport. easily and cost-effectively. In addition. In addition.2 NEW OPTICAL TRANSPORT NETWORK STRATEGIES THAT CUT COSTS As operators have increased access speeds. this equipment obviously can handle some aggregation chores. efficient and reliable than before.000 kilometers or more before they require costly optical-electrical-optical (OEO) signal regeneration. operators are trying to determine if the distributed-router strategy still can reduce transport costs enough to justify the amount they spend on routers and caching devices. and given that a single wavelength can support throughput rates of 40 Gbps to 100 Gbps. These dynamic optical architectures make the transport network far more flexible. These technologies include reconfigurable optical add/drop multiplexers (ROADMs). This new approach to metro networking not only helps operators reduce OPEX and CAPEX costs. directionless and colorless optical architectures now enhance the ability of ROADMs to reduce CAPEX/OPEX and maximize the efficient use of network resources. Operators can manage large numbers of wavelengths more easily than before. operators have experienced a linear increase in their transport network costs. but also enables them to deliver higher-bandwidth services and cloud-based services more effectively. Further. For example. however. because many transport network devices feature integrated Layer 2 aggregation capabilities. in turn. direct interconnection of these routers and caching devices means they can share capacity for more information about Tellabs Solutions . troubleshoot and upgrade. the fact that wavelengths now can travel 2. “directionless” add/drop wavelengths at a node can go in any direction. In the wake of these advances. thereby enabling operators to reduce transport costs and offer new services quickly. This strategy is designed to have the aggregation routers handle some of the traffic locally. many operators have deployed aggregation routers closer to the network edge. When the demand for capacity approaches that amount. a single office today can require 10 Gbps capacity. Is Router Distribution Still a Cost-Effective Strategy? Recently. they can re-locate them at central gateway sites. Indeed. Operators can establish service at the edge and transport it directly to the central destination and core gateway sites. certain networking developments are causing operators to question whether this distributed-router strategy remains a cost-effective solution. making it even more attractive to operators. the operator can justify generating a wavelength. because operators today offer most services at 1 Gbps. In addition. Greater Flexibility New network design concepts. they have been forced to deploy overlay transport networks to support these faster throughput rates. and “colorless” add/drop ports are not wavelength specific—operators can connect any transponder to any physical port and tune any transponder to any wavelength. More Cost Savings. In an effort to control costs associated with the optical transport segment. enables the operator to use these resources more efficiently.000-plus kilometers with no need for costly signal regeneration obviously means they no longer have to stop at intermediate sites. the network can transport enough capacity to ensure its own literally unlimited growth. For example. various technologies have improved optical transport networks to the point that wavelengths can travel 2. the lowest latency and the lowest power consumption. operators can achieve tremendous OPEX savings. Optical technology offers a lower cost-per-bit transport solution The combination of all these factors means that operators no longer need to distribute their aggregation routers in the metro network. forward error correction (FEC) and coherent detection technology for higher-speed optics. Transport Network Evolution Affects Transport Economics With service speeds approaching multi-gigabit rates at the network edge. thereby eliminating the need to transport all the traffic back to the core gateways or central point-of-presence (POP) sites. with far fewer locations to maintain. Finally. made possible by evolving technology. optical technology offers the lowest cost-per-bit-transported. services merely passing through nodes incur almost no cost. Finally. Thirdly. they need only 10 services to cost-justify deploying a wavelength at the service edge. distance has ceased to be a factor when it comes to determining the optimal architecture for metro networks today. As a result. relative to other transport technologies. As the terms imply. some offices and/or sites can share 10 Gbps of capacity quite easily.

3 NEW OPTICAL TRANSPORT NETWORK STRATEGIES THAT CUT COSTS Video relocate Metro Hub Metro Aggregation Metro Network Metro Hub Core Gateway Regional Network Internet Mobile VPN Long Haul Network 1000km Lower cost per bit transport Decrease rack space Lower power consumption Simplify network infrastructure Make a more efficient use of resources Reduce CAPEX and OPEX Costs can be reduced while offering new revenue-generating services Optical networking’s restoration capabilities strengthen network reliability. in terms of both actual deployment of the network and support of restoration capabilities. For example. operators can create services to be “always on” and to “survive” multiple fiber failures. Optical networking’s meshed topologies increase flexibility even more. Optical networking meshed topologies increase flexibility and restoration capabilities See tellabs. As a result. operators can ensure service availability which exceeds 99.9999 percent for more information about Tellabs Solutions .

Equally important.S. promise or legal obligation to deliver any material. Middle East & Africa Tellabs Abbey Place 24–28 Easton Street High Wycombe. or its affiliates in the United States and/or in other countries: TELLABS®. If you have a question about Tellabs solutions. Integrated Layer 2 hub grooming with statistical-gain multiplexing will help to preserve ports on routers and enable vastly improved efficiency and utilization of router ports. the new network design is based on the following concepts: n Dynamic optical networking centralizes critical resources and thereby reduces total costs. more streamlined approach to network design basically enable operators to build transport networks that are faster. It is intended to outline Tellabs’ general product direction. IL 60563 U. Bucks HP11 1NT United Kingdom +44 871 574 7000 Fax: +44 871 574 7151 Latin America & Caribbean Tellabs Rua James Joule No. 92 EDIFÍCIO PLAZA I São Paulo – SP 04576-080 Brasil +55 11 3572 6200 Fax: +55 11 3572 6225 The following trademarks and service marks are owned by Tellabs Operations. TELLABS and T symbol®. products. more flexible and more reliable than © 2012 Tellabs. please email ask@tellabs.. operators can grow their customer base cost-effectively. These statements are for discussion purposes only. and SMARTCORE®. code. n n n n Advanced technologies that enable a simpler. guarantees or warranties. release and timing of any material.4 NEW OPTICAL TRANSPORT NETWORK STRATEGIES THAT CUT COSTS A Transport Network Designed to Deliver Long-Term Success To sum up. The information contained herein is not a commitment. offer higher-capacity services more quickly and simplify their network infrastructures—all the while controlling their CAPEX/OPEX and increasing their profit margins. code. All rights for more information on how Tellabs Packet Optical solutions are helping operators advance their transport networks. Actual results may differ materially.2499E Rev. T symbol® .tellabs. Next Step: Visit www. A 5/12 . are subject to change and are not to be construed as instructions. Inc. 74. feature or functionality described herein remains at Tellabs’ sole discretion. The development. feature or functionality. +1 630 798 8800 Fax: +1 630 798 2000 Asia Pacific Tellabs 3 Anson Road #14–01 Springleaf Tower Singapore 079909 Republic of Singapore +65 6215 6411 Fax: +65 6215 6422 Europe. product specifications. Statements herein may contain projections or other forward-looking statements regarding future events. features. As a result.A. this new network design decouples high-bit-rate services from revenue. technology and resulting commercial or technological benefits and advantages. Smaller cores allow operators to deploy a transparent mesh transport network between core nodes. Operators can integrate Layer 2 edge grooming in the transport network. North America Tellabs 1415 West Diehl Road Naperville. Express optical transport from the edge to the core reduces router transit traffic—and associated costs and latency.