Center for Information andCommunication Technologies

Technical University of Denmark

Innovation Dynamics in the IP Environment

The Future of Voice

ITU Workshop

Geneva, 15-16 January 2007Knud Erik Skouby

CICT, Danish Technical University (DTU) Skouby@cict.dtu.dk

Center for Information and

Communication TechnologiesTechnical University of Denmark

Innovation Economics: Changes and disruptions

The Internet & The Internet Protocol

Next Generation Networks

Convergence and Converged services

Conclusion

Overview

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Two overall effects:

Changes in Technology- Separation between network technology and services- Intelligence moved from the core to the edge of a

network - Scalability- Distributed design and decentralised control

Changes in products/ markets- access to multimedia applications regardless of the

device used or the type of network connected to

Disruption

Innovation in the IP Environment

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Technical University of Denmark

POLICY

MARKET

TECHNOLOGY

Parameters driving changes

Applications

Regulation Services

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Technological trends

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The Internet

In the beginning primarily used for- data services, E-mail and World Wide Web (WWW)

Today:- a variety of audio/video services like Internet radio

and TV, B-logs, computer games, etc

Future:- ‘Internet of things’: RFID and ‘sensor networks’

Internet Protocol (IP) design principles- Distributed design and decentralized control

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Internet services - Examples of Internet’s impacts on media servcies

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Next Generation Networks (NGN):A specific network architecture and related equipments, with one common IP core network deployed for the entire legacy. Relates to the transition of current dedicated voice (and radio/TV) networks to the IP based networks:- Next Generation Core Network (NGCN)

the new switching, gateways and transmission equipments in the core network, enabling several access networks to use the same core network

- Next Generation Access Network (NGAN)new access networks, as deployment of optical fibers, and the associated challenges

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NGAN: Fixed networks

Main access technologies are xDSL and cable modem. - Main development tendencies for these technologies:

Extension of coverage Increase in capacity per connection. UnbundlingBitstream access

Other technologies- FTTx

Capacity is almost a ‘non-issue’ but of course high capacity has high costIn the current provisions of FTTH from energy firms, figures of 2 – 10 Mbps and up to 100 Mbps can be identifiedThe main deployment of fibre is in the backbone network of the new/alternative broadband operators

- PLCAvailability of infrastructure in the households, No need for wireingHigh bandwidth: started around 1 Mbitps but know 45 Mbps modems are available

Source: TDC

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NGAN Technologies- Wireless

WiFi- Unlicensed Industrial, Science and Medical (ISM) band (The

IEEE 802.11b standard). Absence of licensing barriers, the simplicity of the technology and cost effectiveness

WiMAX- the IEEE802.16 standard for fixed wireless access; it is

expected to go mobile in 2008.

Digital broadcast infrastructures- Not worldwide standards and different markets apply to different

standards: European DAB &DVB, US ATSC or Japanese ISDB standards.

Center for Information andCommunication Technologies

Technical University of Denmark

Traditional/current framework-Silo based

Bro

ad

cas

t

Te

lec

om

Inte

rne

t

Terminal

Service

Network

Content• Different technologies, • Different sectors, • Different industries• Different markets• Different regulations

The Silo framework is based on:• Technology specific parameters• Regulatory parameters

Pre

ss m

ed

ia

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Technical University of Denmark

ContentProvision

ServiceProvision

Infra-structureProvision

End userequipmentProvision

BroadcastingTelecomIT

End User

New/Future framework-Convergence

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Convergence (II)

FTTH

DSL

Cable

Wireless

Single Play-2000

Dual Play2000-2004

Triple Play2005-

TVInternetTelephone

TVInternet

Telephone

TVInternet

Telephone

TVInternet

Telephone

Based on Henrik Clausen,IDC Telecom Conference 2006

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Communication TechnologiesTechnical University of Denmark

Convergence (III)

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VoIP Scenario

Calls from PSTN to IP & from IP to PSTN, using a gateway Characteristics:

•IP terminals are computers, mobile phones PDA’s and dedicated IP phones.•Calls can be placed both to and from a traditional PSTN telephone.•Advanced signaling systems are being used

Center for Information and

Communication TechnologiesTechnical University of Denmark

Vertical Separation of Networks and ServicesService and Network ConvergenceDeath of distance and cheaper bandwidthLow cost wireless access in rural areasChange of the fundamental cost structures and investment patterns in the ICT/ telecom sector Infrastructure as well as applications, services and content oriented technology are changed Market ConvergenceNew business modelsDirect implications for developing countries.

Conclusion: Impact on the Telecom Market