Insights

Network Functions Virtualization: A New Model for Network Services

Fri 06 Feb 2015

Woman on a phone call, illustrating mobile connectivity and network virtualization.

NFV is a solution that will enable network infrastructures to absorb traffic growth and dynamically adapt to evolving and enriched services — all within a logic of flexibility and cost efficiency.

Simplifying infrastructures to reduce costs and improve service quality

The complexity caused by the proliferation of multiple network types — 2G, 3G, 4G, and soon 5G — as well as the expansion of frequency bands, forces operators to streamline and simplify infrastructures, both in the core and access networks. This simplification involves separating hardware infrastructure from software functions — this is Network Functions Virtualization (NFV).

In other words, software will now be able to run on standardized hardware, using a cloud-based approach with virtual machines. This reshapes the topology of networks in terms of data centers and points of presence, both for fixed and mobile networks. Operators will be able to push more services into the network closer to their customers, improving efficiency, as the network will dynamically reconfigure itself in the event of a failure. Operators will also be able to guarantee even higher availability rates than today.

Adopting a pragmatic approach

Network transformation occurs on multiple levels:

  • The migration to all-IP, currently underway, replaces old equipment with IP-based systems.
  • Virtualization, which began with IT systems and service platforms, is now expanding across all network functions — from the core to the access layer.
  • Since virtualization is tied to the arrival of LTE and LTE-A, it’s best to focus only on these new technologies and maintain 3G/3G+ infrastructures as-is.

Virtualization can also be driven by the goal of reducing OPEX, especially energy costs. It enables dynamic management of network consumption, user redirection to the most suitable technologies in their area (2G, 3G, 4G...), nighttime deactivation of parts of the network, and allocation of software resources to client groups as needed. When implemented correctly, networks will become more energy efficient and offer on-demand capacity, resulting in better service quality.

Mobile networks: the first to benefit from NFV

NFV plays a key role for three main reasons:

  1. Connecting a massive number of devices, as IoT growth raises scalability challenges that must be addressed.
  2. Managing low-bandwidth and low-energy-consumption devices, which require only internet access.
  3. Operating hybrid networks combining enterprise networks and consumer public networks. This also allows enterprise private network functions to be integrated directly. Additionally, distributed cloud models allow intelligence to be placed closer to devices — at home, at work, or on the move.

NFV deployment at Orange

Orange has begun the first phase of virtualizing its core network and service platforms, focusing on specialized capabilities. From an operational standpoint, new tools must be acquired or developed to leverage this solution effectively.

Procurement departments are impacted, as software and hardware acquisitions are now decoupled. This challenges existing supplier relationships and forces vendors to adopt new strategies — viewing NFV as both an opportunity and a threat.

The second phase will target the virtualization of the mobile access network. In this domain, radio software is still highly specialized. However, centralized RAN (C-RAN) is now being introduced. The goal is to manage the software of multiple radio sites from a single location. Orange is gradually enabling regional virtualizations, but this must be accompanied by a significant increase in access network capacity — aiming for up to 10 Gbps across its geographic zones.

A technological innovation vs. operational performance equation being tested

The innovation/economics equation applies to operational simplicity, reduced energy consumption, and improved time-to-market. Early feedback on service platform and core network virtualization is promising. Several operational tests have been conducted across Europe, with positive results.

The easiest functions to virtualize (e.g., security, firewall, client authentication, gateway) will be the first to transition during equipment refresh cycles. Procurement will shift to a virtualized model, replacing traditional methods.