Assumptions

Telecom is an incumbent operator and fixed line of

telecom is fully TDM based
New Tel and Norm Cell are new operators and their
networks are fully IP based
NewTel and Normcell connects to the Telecom through
LMGs at their premises as regulator at presents allow only
TDM based Interconnection in a mixed IP/TDM scenario.
Even though Regulator allows IP to IP interconnection,
there is no fall back rates and New Tel and Norm Cell are
negotiating to arrive at a mutually acceptable rates. New
Tel and Norm cell are therefore presently connects each
other through LMGs
Newtel and Normcell has approached regulator for having
a sunset date for TDM interconnections

Regulator has actively considered the case for

IP interconnection and decided that
31.12.2017 as the sunset date for TDM
interconnection. Any interconnection
including existing after that date shall be on IP
( ie LMGs is to be provided by TDM sides)
Infrastructure sharing is allowed (including
core networks)

Telecom Network
Telecom has analysed the situation and realised that
they need to shift to NGN to enable them to provide
new services as well as provision of IP based
interconnection before sunset date .
As there are 4 million subscribers they decided that
they will be migrating in two phases.
During First phase Softswitch based C4 Migration for
converting all the Trunks to IP which will facilitate the
regulatory order on interconnection
During Second phase lasting 2 years 1.5 m customers
in each year will be migrated to NGN
The 5 zone at present used by the Telecom will be
modified into two zones facilitating the IP Migration

During the first phase 12 soft switches will

be deployed for 5 lakh line C4
Connectivity ( Each Soft switch will be of
40 K capacity ; )

Mobile Network is fully IP based and can be

connected to MPLS which is planned for the IP
traffic
The Core will be having Edge routers in 19
locations where Major transmission
centers/Nodes are already existing.
First phase is expected to complete in 1.5
years

Softswitch (SS)
Trunk Media gateway (TMG)
Announcement Server (AS)
NMS/eMS
Billing server

During Second phase IMS based solution will

be deployed
As there are two zones, 2+2 configuration of
Core is planned
All the Mobile networks are already connected
to MPLS networks in Phase 1 itself

New Tel & Norm Cell operators

Both the operators are new players and both of them

have IP based network
Since new tel is is a newcomer with only 1million
Subscriber , it was not profitable to make MPLS
exclusively by them.
While launching they interacted with both the other
operators and decided to share the core MPLS network
of Normcell( As they see that telcom is a competitor )
Normcells MPLS is able to cater for around 7 million
subscribers
Both the operators are actively persuing the regulator
to have IP interconnection as they can avoid installing
TMGs for interconnection

Costing model
Lack of accounts for a top down model
No history of costs have only vendors
prices and just-built network cost data
Operational costs are still uncertain but exist
Considering above a bottom up LRIC Model is
recommended

Costing Model
Application servers
Service Specific Costs
Allocate costs to services based on key cost
drivers (e.g. minutes for voice or Mbit/s )
NGN core
Costs Shared : variable costs allocated on
capacity.
Access Network:
Cost allocated based on the Services used in
the Access network where ever possible

Telecom has launched 3 services after phase 2

completion.
Before the national launch, a pilot launching
in one area has been done and the usage of
core has been analysed
Service

Usage of Core in %

Service 1

10%

Service 2

40%

Service 3

50%

Total Project Cost : 540 Crores

Core including incremental cost in MPLS : 400 Crores
Application Servers : 10 +15 +25 = 50
Access Cost : 90 Crores (40 crores Identifiable to separate
Services and 50 Crores shared cost)
Applicati
on

Core(Tot
al cost
400 Cr)

Access
(Separat
e)

Access
Total
Shared(5
0 Crores)

Service 1

10

40

Service 2

15

160

10

20

205

Service 3

25

200

25

25

275

60