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."
