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Metro Edge Solution for Wireline Carriers

Lightpath Responds to Data Demands of Business Customers

CASE STUDY

New York-Based LEC Adds Flexibility and Efficiency to Deploy Highly Desired Managed Services with the Cisco ONS 15454 Multiservice Optical Platform

BACKGROUND

Since 1988, Error! Hyperlink reference not valid. vision has been to be the preferred provider of advanced telecommunications services to municipalities, educational institutions, healthcare organizations and businesses throughout the greater New York City Metropolitan Area. With the help of Cisco Systems®, Lightpath is realizing that vision as the fourth-largest local exchange carrier (LEC) in the state of New York, and the preferred provider of voice, data, and Internet services to more than 30,000 business accounts throughout Long Island, Westchester County, and New York City, Connecticut; and New Jersey. Lightpath achieved this success by providing a highly competitive offering of business and wholesale services delivered on its state-of-the-art `facilities-based' broadband and optical network.
To build its most significant asset, the Lightpath Optical Network, Lightpath worked with its parent company, Cablevision Systems Corporation, Inc., to invest more than $1 billion in network technology and infrastructure. The Lightpath Optical Network is a state-of-the-art, all-digital network that utilizes more than 2700 route miles of fiber optic cable-with more than 119,000 actual miles of actual fiber and direct fiber connections to more than 1600 commercial buildings. The Lightpath network core features six dense wavelength-division multiplexing (DWDM) rings overlayed by 450 Synchronous Optical Network (SONET) rings, supporting more than 1700 active network elements.
This combination of high-speed network technologies allows Lightpath to offer a complete portfolio of competitively priced voice, data and Internet services. It has led to significant business customer successes in a wide array of businesses-from small and midsize through Fortune 500 global enterprises. Lightpath currently delivers more than 140,000 access lines, 2,100 dedicated high-speed Internet circuits and 25,000 broadband connections to its business customers and was one of the first carriers in the New York City Metropolitan Area to deploy commercial packet-over-SONET, private-line services. Lightpath also serves as a "carrier's carrier," providing wholesale transport and access to major long distance and wireless carriers throughout the Tri-State area.
A primary component of the Lightpath Optical Network has been the Cisco® ONS 15454 Multiservice Provisioning Platform (MSPP). Lightpath was one of the first carriers to invest in the Cisco ONS 15454 in the late 1990s and today has more than 670 ONS 15454 platforms deployed across its network. The market introduction of the Cisco ONS 15454 defined the "next generation" in transport, because it was the first optical platform to converge traditional circuit voice and emerging packet-based services. By incorporating this efficiency, Lightpath has delivered all of its services over one converged network, dramatically improving operational efficiencies to deliver both time-division multiplexing (TDM) and IP solutions.
Lightpath continues to stay ahead of its competition and has begun a major strategic transformation of its network. With these changes, Lightpath can market advanced data services and continue to be a leader in the IP-centric evolution within its market. These changes will further the transformation from a TDM-services-only carrier to a multi-service provider capable of higher-value data services. The new state-of-the-art architecture will offer significantly more agility and adaptability, which will allow Lightpath to increase functionality in its core capacity and assets and enhance its ability to manage IP-centric traffic.
For customers, this transformation will allow for bandwidth on demand and optional customer-specified levels of quality options for network performance. For Lightpath, the transformation will allow the company to offer differentiated services that will generate new revenue streams through the delivery of a high-value service mix, including dedicated and virtual metro Ethernet, as well as TDM over IP (TDMoIP) and voice over IP (VoIP).
The Lightpath network evolution will continue to use the Cisco ONS 15454 MSPP, taking advantage of new product features to offer the broadest array of new IP-based services while still efficiently supporting traditional voice services over the existing network. Ultimately, the next-generation Lightpath Optical Network will enable the optional delivery of voice, video and data services over a converged network satisfying evolving market and client demands.

CHALLENGE-GROWING DEMAND FOR ADVANCED DATA SERVICES

Lightpath is seeing demand changes in all of its business markets as the growth in data transport services quickly outpaces the use of traditional voice services.
"We recently saw data traffic surpass the 50 percent mark in terms of all traffic on our network," says Kevin Curran, senior vice president of product management and marketing at Lightpath. "This trend will only accelerate as we see increasing customer demand for Gigabit Ethernet and even early interest in 10 Gigabit Ethernet service. Businesses are also demanding virtual private networks and any-to-any services so that they can stay connected to all of their customers, vendors and partners. They want advanced data services like VoIP and the ability to flexibly add bandwidth on demand, instead of the traditional fixed-bandwidth contracts. In response, we are adapting our networks to provide higher-value data and IP-based services with this flexibility. With these changes, we expect to significantly increase the amount, diversity, and quality of services we can deploy over a given infrastructure, enabling us to better meet changing customer demands and increase our revenue."
Lightpath is not the only carrier experiencing these demands. "All carriers are offering Ethernet or will soon, because corporations are demanding it," said Michael Howard, principal analyst of Infonetics Research. "Service providers are beginning to shift their metro capital expenditures from legacy TDM to products based on IP and Ethernet, driven by increasing customer demands for metro Ethernet services."
While the original Lightpath Optical Network enabled the company to compete successfully in voice, data and Internet markets, it could only deliver traditional private-line data services that were consuming bandwidth and offering limited flexibility. For example, Lightpath's 10/100-Mbps Ethernet service, a premium point-to-point dedicated Ethernet Private Line (EPL) service, consumed significant bandwidth because it required both dedicated SONET working bandwidth as well as protection bandwidth for each circuit. The protection bandwidth had to be reserved in equal capacity to the service rate across all rings involved in the circuit path. The result was an obvious increase in cost of service delivery, with a corresponding reduction in the number of services Lightpath could support over its valuable optical resources. The net impact was higher costs per service with fewer revenue opportunities available per network element.
To ready its network for profitable delivery of highly desired services, Lightpath faced challenges on three fronts. First, it needed much higher bandwidth in its core, distribution and access rings. Second, it wanted to offer more flexible and enhanced data services. Third, it required a more efficient way to deliver data services.
To solve the network efficiency issues and offer the flexible, dedicated, virtual, and multipoint Ethernet solutions customers are demanding, Lightpath needed to manage ring capacity subscriptions effectively, while helping to assure safe and secure separation and segregation of client traffic. The solution required the ability to:
· Manage and control fluctuations in bandwidth demand
· Differentiate clients, circuits, and VLAN traffic, including class and quality of service

SOLUTION-CISCO ONS 15454 ML-SERIES LINE CARD

Upgrading bandwidth in its access networks was by far the easiest challenge to address, because this merely required an in-service card upgrade to the existing Cisco ONS 15454 installed base. The ONS 15454 is an extremely flexible platform that delivers Layer 1 TDM services, such as DS-1 and DS-3, as well as SONET services from OC-3 thru OC-192. "With the ONS 15454, in-service scaling of the network has been easy. It only requires a simple card insertion-we don't have to do forklift upgrades of the hardware," says Brian Fabiano, senior vice president, network services.
To support the move to offer more advanced data services, Lightpath is upgrading the network to support both the Layer 2 and Layer 3 intelligence needed to enable variable-rate data transport, and IP-centric applications. With the Cisco ONS 15454 ML-Series Line Card, Lightpath can provide the IP support that advanced data applications require. The ML-Series offers industry-leading performance for Ethernet and IP switching integrated into a SONET/SDH optical transport platform.
The need for more efficient delivery of data services remains the major challenge. Using the ML-Series card, Lightpath will have the option to offer traditional, dedicated point-to point Ethernet `pipes' or more flexible `virtual' bandwidth incremental services. With the ML-Series card's intelligence for managing traffic, as well as performing spatial reuse and virtual concatenation, Lightpath can dynamically bond or reallocate circuit bandwidth depending upon the application. The network essentially gains much more efficiency from the same amount of bandwidth, which translates into enriched revenue opportunities for Lightpath.
"Prior to the ML-Series card, we were just eating up bandwidth with data services. We couldn't define classes of service for private lines or fully optimize our network," says Fabiano. "Now, with the ML-Series card, we can provide virtual LAN any-to-any connectivity, as well as class and quality of service to our customers. This translates into more revenue, improved margins, and better return on investment for our existing SONET infrastructure."
Lightpath is not alone. Infonetics Research, a market research firm, found that nearly two-thirds of service providers plan to roll out quality of service (QoS)-based services over Ethernet by January 2005, including packetized voice, bandwidth on demand, and private lines, but they cited the problem of providing QoS over Ethernet services as the greatest challenge they face in doing so.
The ML-Series card's robust Cisco IOS® Software-based QoS more efficiently facilitates the transmission of packetized applications across an IP data network. For example, the ML-Series prioritizes traffic and performs application rate-limiting to minimize jitter and delay where low latency is a critical requirement, such as in VoIP applications.
The ML-Series card allows for flexible, granular service speeds, while also allowing Lightpath to carry multiple types of traffic over the same Ethernet transport plane. "This goes beyond our network efficiency gains," adds Curran. "Our customers are demanding these advanced data services. This will help them to connect all their locations at a reduced cost, yet with an increase in service functionality."
"We have built a robust physical network at Layers 1 and 2," says Fabiano. "Now, we're excited about doing some innovative and exciting things at Layer 3, enabling the efficient delivery of voice, video, and data over a single converged network fabric using transport strategies more suitable for IP traffic."
"Lightpath's ultimate vision," according to Curran, "is to create a flexible, scalable network that will allow our customers to simply plug phone jacks into a wall and go to the Lightpath.net portal to pick out the specific next-generation services that they require." Customers will also be able to use the Lightpath portal to change their service mix, review billing status and find answers to questions.

RESULTS--MOVING UP THE VALUE CHAIN

Lightpath, which once competed mainly on price, will use the power of its network to move up the value chain.
"Under the old business model, our salespeople took the telecommunications bills of potential clients and pinpointed the areas in which Lightpath could save them money on a similar-service to similar-service basis," adds Curran. "Under our new model, Lightpath's teams can offer a more diverse telecommunications portfolio that competes on quality and breadth of services, as well as a suite of complimentary service features that empower customers to define and customize solutions based on their specific needs. The ultimate goal is to have our customers view telecom not as a cost center, but as a distinct, competitive advantage in the way they conduct business."

THE EVOLUTION OF ETHERNET SERVICES OVER SONET/SDH

SONET and SDH networks are a mainstay for wide-area and metropolitan-area communications worldwide. Deployed in the 1980s, they were designed specifically to manage TDM characteristics associated with voice- and connection-oriented point-to-point, or highly delay-sensitive point-to-network traffic. IP data traffic, on the other hand, has somewhat different characteristics. Most notably, data traffic is "burst" oriented and considered nondeterministic, because of its unpredictable traffic patterns. Because of this bursty nature, data services are more efficiently delivered using a different strategy than traditional voice services. Networks can transport data traffic more efficiently using virtual, private, or shared services offering a constant rate of speed as well as a peak rate of speed. Typically, the constant requirements are only 35 percent of the peak requirements. So without shared bandwidth (fixed rate data service), typically more than 65 percent of the bandwidth is not used the majority of time.

FIXED-SIZE DATA NETWORKS-ETHERNET PRIVATE LINE

Today, one of the most common Ethernet services offered over SONET/SDH networks is Ethernet Private Line (EPL). Because it operates much like a dedicated private voice line, it features a fixed-in-size, point-to-point and exclusive connection that cannot be shared. This results in the inefficient use of SONET and SDH networks for the delivery of data services.
For example, if an enterprise customer has five downtown locations it wishes to interconnect and provide Internet access using a 100-Mbps EPL service. Under most existing deployments, each location would require a dedicated OC-3 circuit consuming 155 Mbps of bandwidth over a SONET network. An additional 155 Mbps per location is required for protection bandwidth. Therefore, using a traditional SONET EPL solution, these five circuits will consume aggregate ring capacity totaling 1.5 Gbps of bandwidth to deliver the requested 100-Mbps service.
Now if the customer wanted to deploy an advanced data application over this network, it would not be possible because most advanced data applications require features such as QoS, which most EPL services do not support. EPL typically does not support bandwidth on demand or the ability to share one service between all locations, using oversubscription for efficiency.
These scenarios suggest it is time to rethink how we deploy Ethernet over SONET-based networks.

RESILIENT PACKET RING

To overcome these limitations and efficiently and effectively carry data traffic on SONET networks, industry groups and carriers are turning to an evolving IP Transport standard called Resilient Packet Ring (RPR). In fact, a standards based RPR movement is currently being driven by the IEEE 802.17 working group. RPR enables the efficient transport of IP traffic through statistical multiplexing and spatial reuse of core capacity.
RPR can operate over multiple physical media, including SONET and SDH, enabling the efficient transport of data traffic. By using statistical multiplexing and spatial reuse of idle transport capacity, RPR allows for the optimization of virtual tributary and synchronous transport signal (STS) frame capacity up to 100 percent of the available payload in bandwidth assignable to a particular frame. RPR helps ensure that all customers have secure separation, as well as reliable segregation of all IP traffic, even where sub-multiplexed VLAN tags are transported on the same physical circuit paths. RPR uses Layer 3 features such as QoS to prioritize data traffic. Now the customer can choose from differing classes of service ranging from best effort through guaranteed circuit availability. For the service provider, this means the ability to offer differentiated services including "Platinum" services for jitter- and latency-sensitive applications, such as VoIP, or "Silver" and "Bronze" services to meet specific customer needs and requirements.

EFFICIENT DELIVERY OF MULTIPOINT DATA TRAFFIC-CISCO ONS 15454 ML-SERIES LINE CARD

By offering statistical multiplexing and QoS features, in conjunction with RPR, the Cisco ONS 15454 ML-Series Line Card facilitates the efficient and effective delivery of multipoint data traffic over highly resilient SONET networks. Now the features required to support the advanced data service demanded by business customers are readily available to service providers.
Using the previous example, with the ML-Series card, the business customer can interconnect all five of its locations via a single 100-Mbps shared ring. In addition, the service provider can offer service-level agreements (SLA) for peak rates and committed rates to meet the specific requirements of each location within that customer network. This offers significant advantages to the service provider because the service uses only 100 Mbps of bandwidth resources to deliver the service. The customer gains an economic advantage, because the multipoint service would typically cost less than the five private-line point-to-point services otherwise required. Furthermore, customers can deploy advanced data applications and now have the flexibility to immediately add bandwidth and features to their services on demand.
The Cisco ONS 15454 ML-Series Line Card's advanced set of QoS features, statistical multiplexing, and robust support for RPR allows flexibility in service choices and the efficient use of network resources so that the customer and the provider can use their resources competitively.