Tuesday, June 8, 2004

BT Sees Majority of PSTN Services on IP by 2008

BT outlined a five-year timetable for migrating its circuit-based voice services to IP. The mass migration of customers from PSTN to IP will begin in 2006 and, by 2008, BT expects a majority of the transformation will be completed. BT's 21CN initiative aims to migrate the company's existing multiple, service specific networks to a single converged multi-service IP based network. It includes work towards increasing the bandwidth of services provided over the copper access network as well as the trials of FTTP.



Key elements of BT's 21st century network (21CN) initiative include:

  • Over the next five years 21CN will transform BT's business and its cost base, removing duplication across the current multiple service specific networks and creating a single multi-service network. The first stage of the migration will involve the bypass of the core PSTN network link between two major network nodes at Cambridge and Woolwich. An extension is planned later to Faraday exchange in London.


  • An initial 1,000 customers served by local exchanges connected to Cambridge and Woolwich will trial end to end voice and data services over the core IP network link. From October 2004, BT will divert voice calls between these network nodes to the 21CN specific IP network. Calls will be carried using IP. The switch-over will be seamless from the customer's perspective and service quality will be "the same or better than on the PSTN."


  • The next stage of this pilot involves the installation of new equipment at 18 exchanges in South East London, Kent and East Anglia - which are connected to the network nodes in Cambridge and Woolwich. This equipment, known as multi service access nodes (MSANs), will carry voice and data services onto the core IP based network, initially for 1,000 customers by January 2005.

  • Total capital spend on 21CN transformation will be within the previously announced BT capital expenditure envelope of £3 billion per annum. From this year about two thirds of the annual spend is directed to 21CN and other new and intermediate technologies and this proportion is expected to increase.


  • BT expects the converged network will deliver cash savings of £1 billion per annum by 2008/9.


  • BT is committed to making broadband available from exchanges serving 99.6% of the population by summer 2005.


BT has selected the following companies to support the PSTN to IP pilot:

  • Marconi is supplying core network Softswitches and multi-service access nodes (MSANs) for voice services.

  • Alcatel is providing IP Ethernet switching equipment.

  • Siemens is supplying metro media gateways and Juniper core and edge routers.


BT is formally launching the procurement process to select long term suppliers for 21CN, which may not necessarily be those involved in the trials and early implementation stages. Contracts for the main rollout phases will be awarded following a formal competitive tendering process that will be concluded by the end of 2004.



BT is also launching a 21CN FTTP trial that will reach up to 1,500 homes and businesses at Martlesham Heath, Suffolk; at Kents Hill, the Bolbeck Park and Walnut Tree developments in Milton Keynes; and at the Waterfront Studios business centre, at Silvertown in London's Docklands. BT is looking at FTTP especially for new build and greenfield site developments. The trial will begin in October 2004 and run through September 2005.



ECI is supporting the FTTP trials by supplying optical network units for use at customer premises and optical line termination equipment at the exchange. http://www.btplc.com
  • In May, BT announced "Project Bluephone" -which targets handset convergence. Project Bluephone would remove the need to own more than one phone, as customers would be able to use a single device that can switch seamlessly between networks, giving more convenience, a better service with more guaranteed coverage and lower overall costs. Whenever customers are within reach of a BT wireless access point in their home or office, they will be able to connect at the best available speed and quality, through the BT network. If they move out of coverage range, they will seamlessly link to a partner's cellular GSM or 3G network for voice and data, giving them the best available connection wherever they are. Project Bluephone has undergone successful trials with 50 users over the past two months. A 'soft launch' involving more than 1,000 users is planned for this summer, with a full launch later this year. Alcatel has been selected as prime contractor for Bluephone. It is working with Ericsson, Motorola, Norwood Systems, IVT, Inventel and MBT on the project.


  • In April 2004, BT awarded a EUR 30 million contract Alcatel for an service delivery platform that enables advanced IP services and supports existing Number Translation and Network based Call Centre services. The contract, which is part of BT's 21st Century Network (21CN) strategy, covers the Alcatel 8690 Open Services Platform (OSP). Alcatel is working with Sun Microsystems and Ulticom to supply the IT platforms and signaling software, respectively.