NGN

Next Generation Networks
Botswana Telecommunications Corporation

Gaborone, Botswana, February 23 – 27, 2009
Dr. Ndeh Ntomambang Ningo

Department of Electrical and Telecommunication
Engineering
Ecole Nationale Supérieure Polytechnique
University of Yaoundé I
Yaoundé, Cameroon
nnningo@yahoo.com
Telecommunications Regulatory Board Cameroon
1
Module I
Introduction and Background
2
Background: Information Age
“1970s and 1980s saw a merger of the fields of computer
science and data communications that profoundly changed
the technology, products, and companies of the now-
combined computer-communications industry. Although the
consequences of this revolutionary merger are still being
worked out, it is safe to say that the revolution has occurred,
and any investigation of the field of data communications
must be made within this new context.
3
“The computer-communications revolution has produced
several remarkable facts:
1. There is no fundamental difference between data processing
(computers) and data communications (transmission and switching
equipment).
2. There are no fundamental differences among data, voice, and video
communications.
3. The lines between single-processor computer, multi-processor
computer, local network, metropolitan network, and long-haul
network have blurred.
4
“One effect of these trends has been a growing overlap of the
computer and communications industries, from component
fabrication to system integration.
Another result is the development of integrated systems that
transmit and process all types of data and information. Both the
technology and the technical-standards organizations are
driving toward a single public system that integrates all
communications and makes virtually all data and information
sources around the world easily and uniformly accessible.”
Source: Stallings, W., “Data and Computer Communications”,
3rd Ed., MacMillan, 1991, pp.1. Italics and red colour are mine
for emphasis
5
A remarkable outcome of the merger of
telecommunications and computing is what has
commonly been called the information age, based on
standards, pervasive, and affordable and characterised by
the phrase Information and Communication Technology
(ICT).
• Information Technology (IT) = the generation,
processing, storage, and output of data by computing.
• Communication Technology (CT) = the transmission of
data.
6
Background: New Communication Era
New era brought about by several technical and
economic events
• New understanding of the electromagnetic
spectrum: infinite rather than finite.
• Rising power of computers and computing.
• Ascendancy of the Internet Protocol (IP) and
service pull of the Internet.
• Dominance of data (80/20 to 20/80 voice/data)
7
Telecommunications has been undergoing
changes of historic proportions due to the
confluence of
• Internet technologies
• Deregulation
• Competition from new entrants
• Consumer demands for new services
8
Key Technologies underpinning the new era
1. Internet Protocol
– Free
– Everywhere
– Installed on computers with different operating systems
– Permits interoperability between these different computer systems
– Connectionless
– High reliability
– Scalable and extensible
– Open and mutual development
– Low business risk
– Built into mobile devices: mobile phones, pocket PC
– High service pull
9
1. Internet Protocol
“Perhaps the most appealing benefit is the openness, mutual development,
and control that the Internet Protocol suite enjoys. With all application and
networking developers having access to the same information regarding the
IP protocol structure, research and development efforts become
collaborative and self-perpetuating. From a grass roots beginning, the open
nature, flexibility, and affordability of IP led to its pervasiveness. The
pervasiveness and distributed architecture of IP across multiple computer
platforms positioned IP as the unifying protocol of choice for enterprises and
the connected Internet. The service-oriented nature of the connected
Internet provided service pull, which rapidly led to IP's ubiquity. Because of
these enablers and the Internet, IP is now everywhere.”
Source: Wood, R., Next Generation Network Services, Cisco Press, 2005, p.8-9.
10
2. Optical fibre/fibre optics
– Abundant raw material (sand to glass)
– High information carrying capacity: huge bandwidth
– Multiple wavelengths (lambdas) mean even greater
bandwidth
– Low interference
– Low error rates
– Low power requirement
– Light weight
11
3. Wireless
– Untethered
– Enables mobility
– Increasing capacity
– Variety: WIMAX, WIFI
– Variety of uses
– Less civil engineering works
12
Radical shift
From
Technology Push
To
Service Pull
13
Service pull of the Internet
“The Internet is a post office, a library, a bank, a brokerage, a pharmacy, a travel
agency, a school, a grocery store, a market, a flower shop, a bookstore, a mall, and an
auto dealer. It's also a phone book, a television, a radio, a newspaper, a magazine, a
catalog, a map, a weather forecast, a filing cabinet, a utility, a digital neighborhood,
and a community. It's even a mailman, a banker, a doctor, an investment broker, a real
estate agent, a teacher, a car salesman, a ticket broker, and a delivery boy. Businesses
use the Internet as a living brochure, a sales and pricing catalog, an advertiser, an
order taker, a distributor, a sales and customer service channel, and a global street
address. These embedded services save time and, therefore, pull users into digital
commerce and entertainment. The Internet is one definitive example of service pull.”
Source: Wood, R., Next Generation Network Services, Cisco Press, 2005, p.8-9.
14
Background: Incumbent’s
Challenges
“Today, traditional telecom operators are facing two life-and-
death challenges brought about by competition and technology:
• Challenge 1: Internet Service Providers (ISP) providing
communication services based on the Internet Protocol (IP)
are replacing traditional telecom services, not only at lower
costs but also with enhanced features and almost unlimited
potential.
• Challenge 2: Overwhelming technology development on the
one hand complicates the infrastructure investment decision
but on the other hand enables competition as more players
enter the telecom market.
15
Background: Incumbent’s
Challenges
“However, nothing will happen overnight. There are ways for
operators to survive these challenges:
Challenge 1 – the telecom operator should become more than
an ISP; and
Challenge 2 – the telecom operator should apply a model of
operation driven by the needs of customers.”
16
Background: Incumbent’s Challenge 1:
Become more than an ISP
An ISP is
• Agile: develops software-based communication
services which can be deployed rapidly on various
platforms and in various ways
Dependent: on the physical network infrastructure of
incumbent telecommunication operators for service
delivery, whose quality of service itncannot
guarantee because it has no control over
performance of the legacy operator’s network.
17
Incumbent telecommunication operator
• Has full control over the performance of its
network and thus over the QoS it can deliver.
• With this advantage, can eventually become
more than an ISP because the QoS of its
services is guaranteed.
18
Incumbent telecommunication operator
1. Be more innovative and aggressive than ISP in
creating and delivering IP-based services and
applications needed to satisfy customer demands.
2. Continuously master the performance of its
network in order guarantee the QoS required by
clients.
19
Background: Incumbent’s Challenge 2
Needs driven business model
• Today, technological developments often exceed
customer needs.
• But such developments expand the range of
opportunities for legacy operators while making
infrastructural investments more complicated and
also increse the opportunities for competitors.
• To retain and even increase customer base,
incumbent operators must change
business/operational model from technology-driven
to customer-needs-driven (service-driven)
20
Needs driven business model
Souce: Salina, J. L. and Salina, P., Next Generation Networks:

Perspectives and Potentials, Wiley, West Sussex, 2007
21
Technology-driven Model
• Focus on the technology.
• Vendor of technology is driver.
• Operator is basically passive.
• Vendor guides and masters the development of
technology and the services arising from the
technology.
• Operator buys, introduces, and maintains the
technology.
• Operator woes customers to buy whatever new
services and devices from the technology.
22
Background: Incumbent’s Challenge
Technology-driven Model
Vendor Operator Customer
For this model the fundamental issue is: Based

on existing and future technology, what service
can be sold to the customer?
23
Customer-needs-driven Model
• Technology is beyond the needs of customers.
• Operator must focus on the service valus to the
customer.
• Vendor must consistently attempt to understand
operator’s need in order to produce innovative, fast-to-
market, and cost-effective technology .
• Operator preoccupied with customer’s needs, using
them to guide business strategy
• Operator must understand technology in order to make
correct choices for infrastructure.
24
Customer-needs-driven Model
Vendor Operator Customer
In this model the basic issue is: what are the current
and future needs of customers? What technologies will
allow the operator to satisfy these needs?
25
How?
1. Historically, incumbent operators typically operated one
network, such as the public switched telephone network
(PSTN) or the mobile telephone network, which was
optimally designed to carry voice.
2. As demand for data communications developed, the
incumbents adapted their networks to carry data traffic.
However, rather than replacing the PSTN, operators typically
built new networks for data, called the overlay network,
which they ran in parallel. These new overlay networks were
designed specifically to carry data traffic, e.g. a packet-
switched public data network (PSPDN).
26
How?
3. As network technology continued to develop and client

demands grew, the number of networks multiplied gradually.
(ATM, IP, Frame Relay, ISDN, PSTN, X.25 etc.)
Consequence:
The problem with this multi-network approach is that it has

created a web of complexities and consequent management
complexity, operational inefficiencies, smaller economies of
scale, maintenance issues, etc.
27
SO ?

(Magic Wand ?)
(Panacea ?)
28
SO ?
Next Generation Networks aim to go back to the simplicity of
one single network; it is all about deploying one network
platform capable of supporting all traffic types while facilitating
service innovation, simplifying the network and streamlining the
support structure.
29
SO ?
Proactivity
Leapfrogging
30
SO ?
Think Globally
Reinvent Locally
31
Programme
• now-combined, merger, Overlap, integrated
• no fundamental differences among data, voice, and video
communications
• data accessible anywhere, anytime, any device, any network
Module II : Convergence
• any investigation of the field of data communications
must be made within this new context
• single public system that integrates all communications
and makes virtually all data and information sources
around the world easily and uniformly accessible
Module III : Next Generation Networks
32
Programme
• becoming more than an ISP
Module IV : Migration
• challenges, competition, becoming more than an ISP
• data accessible anywhere, anytime, any device, any network
Module V : Regulation
33
Programme
• technical-standards
• single public system that integrates all communications
and makes virtually all data and information sources
around the world easily and uniformly accessible
• becoming more than an ISP, data accessible anywhere,
anytime, any device, any network
Module VI : Standardisation
34
Programme
• still being worked out
All aspects of NGN

• Convergence
• Next Generation Networks
• Migration
• Regulations
• Standards
35
Module IIa
Convergence
36
Consumer Vision
To enrich life, consumers demand
• Any service
• Anytime
• Anywhere
• Any device
• Any network
• Any transport medium
37
Next Generation Networks: Convergence
From a business model characterised by vertical

integration (silos):
• For each new service a new network was built
which ran in parallel to existing ones offering
different services
• A set of complex and highly segmented
infrastructures that have many redundacies
and are expensive to run, manage, and
maintain.
38
Perspectives
1. Creation of new services by using or
combining dissimilar technologies (e.g. VoIP).
2. Single infrastructure supporting multiple
services (fixed/mobile networks carrying
voice, data, SMS,MMS, etc.).
39
To a business model with a single transport

infrastructure in order to:
1. Remove redundancies
2. Improve efficiency
3. Reduce capital costs
4. Reduce maintenance costs
5. Reduce support and management costs
6. Reinvest resulting savings in the
40
development and provision of new services,

which will generate revenue.
7. Decrease time-to-market with new services.
8. Become more competitive against new and
agile entrants with disruptive products.
41
• Network and IT come together.

• “Convergence is the leveraging of common service
enablers, via open interfaces, to create, deliver, and
support blended services over a common IP network.”
• The unification of the previously separate worlds of
communication, entertainmant, and media (through
digitisation)
• Transmission of an increasing number of services and
content over a common infrastructure.
42
What is convergence?
The path towards convergence was led mainly by the increasing digitalisation of
content, the shift towards IP-based networks, the diffusion of high-speed
broadband access, and the availability of multi-media communication and
computing devices. Convergence is taking place at different levels:
• Network convergence – driven by the shift towards IP-based broadband
networks. It includes fixed-mobile convergence and ‘three-screen convergence’
(mobile, TV and computer).
• Service convergence – stemming from network convergence and innovative
handsets, which allows the access to web-based applications, and the provision of
traditional and new value-added services from a multiplicity of devices.
• Industry/market convergence – brings together in the same field industries such
as information technology, telecommunication, and media, formerly operating in
separate markets.
43
• Legislative, institutional and regulatory convergence – or at least co-operation –
taking place between broadcasting and telecommunication regulation. Policy
makers are considering converged regulation to address content or services
independently from the networks over which they are provided (technology
neutral regulation).
• Device convergence – most devices include today a microprocessor, a screen,
storage, input device and some kind of network connection – increasingly they
provide multiple communication functions and applications.
• Converged user experience: unique interface between end-users and
telecommunications, new media, and computer technologies.
44
Customer/user demands: any
Technological developments:
service, anytime, anywhere,
digitalisation, computing, IP,
any devise, any network, any
wireless, optics
transport medium
Convergence
Applications
fixed/mobile
Experience
Regulatory
voice/data
Services
Industrial/
Network:
Network:
Corporate
Com. Tech./
Info. Tech.
Billing
Business
Markets
User
Models
Device
45
• The process towards convergence has been based on an evolution of technologies
and business models, rather than a revolution. This process has led to:
- Entry of new players into the market.
- Increasing competition among players operating in different markets.
- The necessity for traditional operators to co-operate with companies previously
in other fields.
• As a result, convergence touches not only the telecommunication sector, but
involves a wider range of activities at different levels, including the manufacturer
of terminal equipment, software developers, media content providers, ISPs, etc.
Source: OECD, CONVERGENCE AND NEXT GENERATION NETWORKS, OECD Ministerial

meeting on the future of the Internet economy, Seoul, Korea, 17-18 June, 2008
46
• Broad term referring to the merging of

a) networks – merger of data and telephone
networks
b) services – use of the same medium or
network by multiple services such as data,
voice, video.
c) firms
d) devices
47
A tendency for different ICT domains to come

together in several combinations through
finding increasing synergy, new applications,
common technology, new business models, or
as services offered in packeges (e.g. triple play)
48
A process without a clearly defined end point.
49
• Driver of innovative services to market

• Differentiation between traditional and non-
traditional competitors
• Demands new business models
50
• Creation of new market paradigm (driving the

introduction of innovative products to market,
thereby creating new customer experience)
and business model (from segmented market
according to service to blended and
personalised services).
51
A key factor in the transformation to a new

business model involving the convergence of
IT and networks is the comprehensive re-
examination of the organizational structure of
the enterprise and its business practices in
order to make whatever changes are
necessary for a smooth transition.
52
Current Future
Service A Service B Service C Services A, B, C
IP platform
(supporting QoS)
Network A Network B Network C Backbone Networks

53
Businees Model Will Change
54
Drivers
1) Technological drivers
2) Market drivers
55
Technological Drivers
Several Major technologies have impacted
the information and communication
markets :
1. Digitisation
2. Computing
3. IP Network
4. Broadband everywhere
5. Ubiquitous wireless
6. Multi-access innovative devices
7. Open network and IT platforms
56
• Digitization – the representation of all data in
the same form, generally in the binary format
• Computing
a) reducing cost
b) reducing size
c) increasing power of computing devices
57
• Computing’s ever increasing power and lower
prices.
Consequence: data compression and resulting
increase in the carrying capacity of transmission
system, thereby freeing up more bandwidth and
leading to introduction of other services by
incumbents or new entrants. For example, digital
broadcasting.
58
• Internet Protocol (IP) – growth and universal
appeal
Consequence:
a) different devices and services
(applications) can use the same network
b) reduction of costs
c) ease of design and deployment of
devices and applications
59
Development of
New network Expansion of
wide range of
technologies network capacity
services
Network Service
Convergence : Convergence :
transmission of conversion of
different services different services
on same network into same format
60
Market Drivers
• Fueled by the technological drivers
• Broadband
• Investments in the development of services
and applications and infrastructure.
• Multiple play
61
1. Service convergence or “multiple play”: single network carries

several services that required separate networks in the past.
2. Network convergence: several networks connecting to each
other through a common standard, allowing a communication
service to travel through any combination of networks.
3. Corporate convergence: mergers, acquisitions, and
collaborations among different types of companies, creating
new entity which can offer multiple services and addressing
different markets.
1 and 2 are technological while 3 is economic or business.
62
63
Multiple Play
The use of a single communication network,
typically a telephone or cable network, for the
provision of a combination of services such as
voice, video, and Internet.
Multiple play is a subset and a consequence of

convergence.
64
Features
• Multiservice: multiple services previously
supported or requiring new infrastructure are
supported by a single infrastructure.
• Multifunction: support of multiple services by
a single terminal.
• Multimedia: different content converted to
digital form, processed, stored, transmitted.
• Versatility: delivery of the same service or
content by different infrastructure or media.
65
Different Types of Convergence
TYPE OF CONVERGENCE
Service Network Corporate
Use of networks to provide Transport of a services over Firms in one sector
Examples Definition
multiple services. any combination of acquire, merge, or

networks. collaborate with firms in
other sectors
Communication companies Internet telephony services Internet, broadcasting, and
offer telephony, television, like Skype carry voice telecommunications firms
and Internet services using telephony using the partner, merge, or expand
telephone, cable, or fixed Internet and traditional their range of services.
wireless networks. networks.
Service providers can enter Reduced costs can lower Mergers create
new sectors, use their tariffs. Network integration opportunities for new
Benefits
networks more efficiently, permits mobility for services or markets, lower

offer discounts for bundles, consumers and expands costs and tariffs, and
and increase access to new coverage. increase the coverage if
ICT services. individual firms. 66
Different Types of Convergence
TYPE OF CONVERGENCE
Service Network Corporate
Subscribers could be Could lead to lower Mergers could lead to less
locked into one provider. investment in networks. competition, market
Risks
Smaller firms, especially dominance, less diversity

those without own of media content, and less
broadband networks, cultural and linguistic
might be pushed out of the diversity.
market.
Convergence changes the Connecting different Mergers create new
Implications
scope and boundaries of networks allows location- business models, and alter
Policy
markets and alters entry and network-independent the market structure,

barriers. services provision. changing the dynamics of
the sector.
Source: Singh, R. and Raia, S., Nothing endures but change: Thinking
strategically about ICT convergence 67
Opportunities and Challenges of Convergence

Opportunities
Challenges
Users Operators Vendors
Access to a great variety of Provision of wider Reduce or/and
services range of services undermine
through same competition
infrastructure
Wider range of access Lower costs Increased power of
devices incumbents.
Increase in reach of Higher revenues Bottleneck
services
Lower tariffs New customers Reduction of
diversity
New economic New markets
68
Opportunities and challenges of convergence

Opportunities Challenges
Users Operators Vendors
opportunities to create Reduced barriers to
services and applications market entry New
entrants
competition
lower prices
increased service
coverage
economic growth
Social development
through access to wide
variety of services
69
Government Responses to Convergence
POLICY RESPONSES
Resist Wait and Watch Enables
Government believes Government believes Government believes
Perceptions
that convergence may existing policy that convergence can

undermine social, accommodates benefit the ICT sector
political, cultural, and convergence, or decides and economy at large.
economic objectives. not to act.
Government takes steps No policy changes. Issues Government updates
Actions
to prevent new services are handled on a case-by- policy, promotes

and providers from case basis. industry responses, or
entering market. directly invests.
strategically about ICT convergence
70
Government Responses to
Convergence
POLICY RESPONSES
Resist Wait and Watch Enables
• New services cannot • Case-by-case decisions • The market evolves
develop legally, but allow progress, but with new services and
may still defeat expose policy business models.
restrictions. inconsistencies. • Growth and innovation
Outcomes
• Users lose potential • Growing uncertainty accelerate.

benefits from discourages investors • Users benefit from
innovation and cost and operators. increased access and
reductions. • Government faces choice, and reduced
• Government faces increasing pressure to prices.
increasing pressure to revise policy.
remove restrictions.
strategically about ICT convergence
71
72
73
Module IIb
Fixed-Mobile Convergence
74
Next Generation Networks:
Fixed-Mobile Convergence (FMC)
Once upon a time...
• Fixed networks dominated, and “mobile” was
essentially concerned with access…
Now the world has changed …
• Mobile dominates …
• Mobile broadband rapidly becoming dominant …
• Innovative access mechanisms (wired and wireless)
have become significant …
• Customers are interested in services, not technology
Source: A. Scrase, Fixed-mobile convergence, 2005
75
Mobile-Fixed Convergence (FMC)
Since mobile dominating …
• … and being the focus of most technological and
commercial decisions in the industry…
• … the mobile platform is now the one on which the
world will converge
• The “fixed” telecom industry will need to adapt…
• … or die …
76
• Cellular handsets are used for non-
telecommunication services
• Are personal communication devices
• Are frequently used in fixed locations
• Compete with fixed wireless access (FWA)
77
Technology Evolution
• Many countries (developed and developing) are
seeing fixed line use reducing, even though
penetration rates are not that high.
• Most countries (developed and developing) are
seeing mobile use increasing even though
penetration is already high.
• Internet penetra on is not that high but shows a
rapidly growing trend.
• Broadband deployment is in its infancy.
Source: A. Scrase, Fixed-mobile convergence, 2005 78
Changing Telecoms Trends
• Fixed line usage is reducing dramatically for “classical”
services
• Mobile use is increasing steadily even though penetration is
already high.
• Broadband Internet deployment shows a rapid growth trend.
Fixed Mobile
Broadband
Source: FMC_London_NGN.ppt
79
Economic Evolution
• Even if customers have been willing to spend more
on communications, the increases are small and
certainly not in the fixed network
• Customer spending will not increase drama cally …
...therefore, Industry must find a cheaper way to
deliver telecommunication services
• Mass markets / economies of scale can help achieve
this goal.
80
If we stay with the present course…
• Fixed network revenues will decline year on year, and
investment for the future will be difficult
• Wireless access to fixed networks will only bring
short term alleviation
• Mobile network revenues will increase year on year
until saturation is reached

81
Customer Expectation Evolution
• Today’s customers expect …
• Mobility
• Portability
• Convenience
• Value for money
• Access to their preferred facilities and services
irrespective of type of network and their
geographical location
Source: A. Scrase, Fixed-mobile convergence, 2005 82
Any Service, Anywhere, Anytime
• Converged Services: Voice, messaging,
presence, multimedia, VPN, corporate
applications
• Converged Devices: Phones, smartphones,
PDAs, laptops
83
Network convergence and customer expectations
• The customer is expecting one network and
being able to use it for voice and data-calls
with one device
• Wants to benefit from the advantages
offered by the different networks
84
Network convergence and customer expectations
• Doesn’t care which technology is used to deliver the
service, most important is the functionality and the pricing
of the service
– The price will distinguish the situation of being in
a ‘fixed environnement’ (eg at home), or in an
office situation with a requirement to be ‘on-the-
move’ (price premium)
– The customer also expects the network speed &
quality to be ‘everywhere’ & on the same level;
85
• For businesses with an increasingly mobile
workforce, creation of a unified workspace:
ü one number ring to all devices
üCall continuity across devices
üconsolidated fixed and mobile call history and
billing
• Boost employee productivity
86
For consumers
• connected life with continuity across devices
(e.g. watching movies, sports, news with
continuity across TV, mobile phone, PC)
87
General challenge to all service providers:
• Customers seek mobility
• Customers have more choices of access to
content in terms of technology and prices.
• Customers demand easy access and simple
interface, continuity of access and experience
across multiple networks.
88
Mobility is about
• A continuously connected life as one moves
• Choice and simplicity while continuously
connected
89
Challenge to fixed service provider (FSP):
Operate in a world of mobility
• VOIP
• Mobile phone substitution
• Decline in traditional voice revenues due to VOIP and
mobile phone substitution
• Mobile service providers (MSP) aggressively pursuing
fixed-line business with broadband wireless products
90
• No convergence, optimization of individual
applications for particular networks and
devices: voice on voice networks, data on data
networks, video on cable networks.
• Today’s networks carry converged services –
voice, data, video, content, and applications
• Users must switch between multiple networks
and devices.
91
These Trends are pushing for…
Fixed – Mobile Convergence (FMC)
the integration of mobile and fixed technologies
to enable the seamless distribution of services
over fixed and mobile broadband networks
Mobile – Fixed Convergence (FMC)
92
FMC is an emerging capability that provides
consumers continuity to access and use of
content, applications, or services using the
device of their choice.
93
• Mobile and fixed networks ‘get together’
• This development is coming mainly from the
fixed side as those networks get more and
more ‘mobile’
94
• Main challenge is to find a durable way to
connect these two different networks
while service levels are maintained and
transfer the network specific advantages to
the other network (e.g. fix numbers on mobile
networks, SMS and MMS-services on fixed
networks)
95
– FMC is the coming together of all networks,
content, applications, services, devices, and
management so that users can avoid manually
toggling between wireless and wireline divide.
– FMC reduces the number of user devices and
simplifies access to networks. It provides
easier access and simpler interface, providing
access continuity across networks.
96
What is FMC ?
• One phone number across wireline, WiFi
and wireless access
• Support for today’s Voice, SMS, Voicemail
services – and tomorrow’s multimedia services
•When indoors service provided over WiFi,
when in wide area service provided by Cellular
97
What is FMC ?
•Seamless mobility across domains
– Handoff and roaming
• Advanced calling features
– Call forward, call wait
– Multi-line calls
– Personal/Enterprise/Family feature
control
98
What is FMC ?
•Advanced multi-media features
– Video calling/conferencing
– Multi-party gaming
– Blending IM/voice/video/web
Source: A. Patel, Introduction to Fixed/Mobile

Convergence (FMC), 2006
99
100
To combat the challenges facing them, SPs must
expand their offerings to customers by including
multiple play such as triple play, quad play, quad
play plus, and double play.
• Triple play: bundled subscription to voice,
data, video (bandwidth intensive needing
fixed line)
• Quad play: bundled subscription to voice,
data, video, and mobile cellular services to
101
satisfy customer needs for mobility.
• Quad play plus: FMC voice with one-number
ring and call continuity across devices + FMC
video with programme continuity across
screens (TV, PC, mobile phone, etc.) + FMC
data connect with roaming across fixed, WiFi,
and cellular networks
102
Types of Multiplay
OFFERING SERVICES INCLUDED
Triple play Voice, video, broadband data connect
Quad Play Voice, video, broadband data connect, mobile cellular services
Quad Play Plus FMC Voice: one number ring and call continuity across devices
FMC Video: programme continuity across screens
FMC Data Connect:
Dual Play Fixed Mobile Substitution (FMS): replaces fixed voice with
unlicensed wireless and fixed broadband
Mobile Broadband Substitution (MBS): replaces fixed broadband
with 3G networks
103
FMC benefits
1. Offer multiple play services
2. Unprecedented flexibility to users who can
be reached at the same number on different
devices and can have their mobile calls
transparently handed off to free unlicensed
wireless (UW) network.
3. Cost reduction, quality improvement, and
new services.
104
NGN:Fixed-Mobile Convergence (FMC)
FMC benefits to service providers and end users
105
Impact of FMC on revenue opportunities
106
FMC strategic trends
1. Need for FMC will force heterogeneous
network operators to partner or expand their
capabilities. Fixed and cable operators will
add mobile services in order to compete with
integrated service providers. All service
providers will tend to support heterogeneous
fixed, unlicensed wireless (UW), and mobile
networks for voice, video, data, content,
applications, and niche apps like video. 107
2. Cable operators sell to companies to improve
employee productivity because:
ü unified communications
ü Seamless data access across multiple networks
ü Seamless use of applications across multiple
networks
ü Seamless video conferencing and voice sessions
Services requiring broadband available with
cable. 108
3. Video is key in triple and quad play since
many consumers consider video as must
have service at home.
109
Service providers strategies against competition
110
Impact on Developed Countries
• Clearly identified need to move towards Next
Generation Networks
• But, legacy investments must be protected….
• Large installed PSTN customer base will need
to be progressively migrated to broadband
access, using either fixed or mobile, or both
technologies.
111
Impact on Developed Countries
• Mature mobile population will evolve to high
speed technology for broadband access to
NGN platforms
112
Impact on Developing Countries
• Clearly identified need to move towards Next
Generation Networks
• Legacy investments are much less of an issue
• Industry can “leap frog” from outdated
technology to Next Generation Networks and
benefit from the experienced gained by early
adopters
113
Impact on Developing Countries
• Low fixed teledensities
• Arrival of mobile implies little prospect for
further investment in fixed networks
• Large fraction of the population have no
access to fixed or mobile telecommunications
• Therefore, FMC is misleading and/or irrelevent
114
Module III
Overview
115
NEXT GENERATION NETWORKS
• Background
• Definition of NGN
• Characteristics of NGNs
• Architechure of NGN
• Enabling technologies: IP, Wireless, Optics,
Ethernet
116
NEXT GENERATION NETWORKS:
Past and Present
In the Past and in the Present Somewhere:
• Tower (plethora) of information: voice, video, data
• Tower of networks: POTS, POTV,Cable, Data
• Tower of protocols: X25, frame relay, ATM, TCP/IP,
etc.
• Tower of devices: Fixed telephone, PC, laptop,
palmtop, Cellular telephone, PDA, Television, etc.
• Tower of bills: fixed telephone, cellular telephone,
Internet access, television
117
Past and Present
• Lack of continuity of service
• No seamless connection between networks
• Little mobility
• Too many devices
118
Past and Present
Vertically integrated networks: telephony (fixed
and mobile, Internet)
• Silos: each designed for a given service
• Very successful in their domains served
• Limited opportunities to offer new/enhanced
services
• Seek new business opportunities
Past and Present
Traditional architechure and business model
120
Next Generation Networks: Past and
Current Network Architechures
121
Next Generation Networks: Past and
Current Network Architechures
Silo: Each service or application has its own billing,
management, control, transport.
A situation in which different services were
provided by separate networks (mobile, fixed,
cable TV, Internet). Single purpose network.
One network one service separate access
device.
Result: multiplicity of same functionality for a single
operator with several specialised networks.
Wish List
• One network delivering all desired services
• Transparent hand off from one network to another
• Easy switching from one service to another even
across multiple networks
• mobility
• One bill for all services
123
Wish List in other words,
• Any service, anytime, anywhere, any network
• Perhaps, on one device or a minimum number
of devices.
124
Customer Needs
125
Operator Needs
126
Value to Service Providers
• Addition of new, advanced services to retain
customers and attract new ones
• Addition of network-based services to their
customer premises equipment-based services,
thereby increasing the potential for greater
profits.
127
• More efficiency and scalability, support of user
and service mobility, ease of providing customer
services such as billing, provisioning, etc.
• Build on core competences of traditional
transport services to cost effectively support new
services; eliminate the costs and inefficiencies of
service-specific, proprietary solutions; reduce
time to market and life-cycle costs of new
128
services; deployment of new services, thus
remaining competitive.
In sum, public carriers need NGNs to add value to
their current services.
129
Transition
Vertically integrated networks: telephony (fixed
and mobile, Internet)
• Must break through old operating boundaries,
initially pairing domains: telecomms, internet,
IT, broadcasting, media
• Develop common offerings between networks
Transition
Horizontal: A situation in which communication
services are accessed seamlessly
across different networks and
multiple platforms, sometimes in an
interactive way.
Multipurpose network. One network
many services.
Transition
Current Future
Service A Service B Service C Services A, B, C
IP platform
(supporting QoS)
Network A Network B Network C Backbone Networks

Transition
Businees Model Will Change
133
Transition: Long term objectives
• convergence of telecommunication and information
services infrastructures.
• Convergence of telecommunications and IT services and
applications.
• Support for old, new, and evolving business models,
including those that open the markets to new entrants.
• Support for multiservices that include real-time and data
services, either individually or in combinations that could
include multimedia services.
Vendor Needs
135
Converged User Experience
Today Tomorrow
BILLS
136
Today
Today’s network architechure presents an internetworking problem
137
Today
Todays Vertical Network Infrastructure makes efficient Communication
difficult
• Access specific terminals

• Access specific services
• Independent service
platforms
• Multiple customer
identifiers
• Separate billing and
accounting
138
Phases of facility development
• First, an opportunity for a new service is recognised but the existing
infrastructure is unable to support the service.
• Second, existing facilities are adapted to accommodate the new service.
• Finally, the proper support infrastructure for the new service is specified,
designed, and implemented.
There is no convergence in the first phase. In the second phase, there is some
degree of convergence. The third stage is concerned with creation of the
appropriate support for convergence.
The creation of the proper support for convergence has been encapsulated in
the concept of next generation networks.
The concept of a next generation network has been
introduced to take into consideration the new
realities in the telecommunications industry,
characterised by factors such as: competition
among operators due to ongoing deregulation of
markets, explosion of digital traffic – increasing use
of the Internet, increasing demand for new
multimedia services – increasing demand for
general mobility, convergence of networks and
services, etc.
A major goal of the NGN is to facilitate
convergence of networks and convergence of
services.
So what next?

ITU definition: ITU-T SG 13 Rec. Y.2001
– A NGN is a packet
packet--based network able to provide
telecommunication services and able to make use of multiple
broadband, QoS
broadband QoS--enabled transport technologies and in which
service--related functions are independent from underlying
service
transport--related technologies.
transport technologies
– It enables unfettered access for users to networks and to competing
service providers and/or services of their choice.
– It supports generalized mobility which will allow consistent and
ubiquitous provision of services to users.
Generalized mobility: The ability of the user or
other mobile entities to communicate and
access services irrespective of changes of the
location or technical environment.
Architechure
Source: Presentation for 22-12-2006- NGN meeting final.pdf
145
NGNs can also be defined in terms of their technical
characteristics. The key technical characteristics of NGNs are
that they provide:
- A single IP-based core network handling the full range of
telecommunication services;
- A single access platform supporting the full range of
access technologies and services;
- Distributed rather than centralized switching, routing and
network intelligence enabling remote access, control and
maintenance.
Next Generation Networks…
NGN characteristics
– Packet-based transfer
– Separation of control functions among bearer capabilities,
call/session, and application/service
– Decoupling of service provision from network, and provision of
open interfaces
– Support for a wide range of services, applications and
mechanisms based on service building blocks (including real
time/ streaming/ non-real time services and multi-media
services)
– Broadband capabilities with end-to-end QoS
– Interworking with legacy networks via open interfaces
– Generalized mobility
NGN characteristics
– Unrestricted access by users to different service providers
– Converged services between fixed/mobile networks
– Independence of service-related functions from underlying
transport technologies
– Support of multiple last mile technologies
– Open network based on standards
– Converged broadband network
– Ubiquitous network
– Distributed network intelligence
– Compliant with all regulatory requirements, such as emergence
communications, security, privacy, lawful interception, etc.
Observations
• The term Next Generation Network signifies a paradigm shift from circuit
switched to packet-switched networks technology and provision of services
by the use of Internet Protocol. Conversion from analogue to digital
technology by itself in the circuit switched network environment did not
signify a generational change in the network technology.
• A Next Generation Network is essentially an IP-based network that enables
any category of customers (residential, corporate or wholesale) to receive a
wide range of services (voice, video, data etc.) over the same network. IP
access is enabled across a wide range of broadband technologies, both
wireless (3G, WiFi, WiMax etc.) and wireline (copper DSL, cable, fibre,
power lines etc.).
Services
Video
Single Integrated Pipe High-Speed

Data
HFC (Cable) Network using DOCSIS transport

ATM or IP Over xDSL Lines
Voice/Fax
Fixed Wireless
“A network where all kinds of information (voice, fax, video, data) are
transported uniformly using packet-based transport and switching
media.”
150
Source: Cochinwala_Munir.ppt
The NGN Service and Application Model
VOICE
AUDIO
HIGH SPEED DATA
NEXT
GENERATION SINGLE INTEGRATED INFRASTRUCTURE
LOW SPEED DATA
NETWORK
VIDEO PROVIDER
TELEVISION
OTHER
151
Source: Cochinwala_Munir.ppt
Future
Convergence on an NGN Core Network
152
Future Network Architechures
153
The specification, design, and implementation of
a proper support for convergent services.
An evolving concept, a development towards

one or more future facilities dealing with and
characterised by convergence.
Key characteristics of NGNs are:
• Geographic transparency: boundaries are
disappearing and economic benefits
independent of service “density” must be
realized.
• Transport efficiencies: transport costs
(price/bit) are continuously declining, NGNs
must share these efficiencies – for both
bearer and signaling traffic.
Key characteristics of NGNs are:
• Internet technology economics: leverage services
and service delivery through the Internet, as well as
the “silicon economics” of Internet hardware
(servers, etc.) as memory and processor
price/performance improve.
• “Old World” to “New World” interoperability:
existing PSTN infrastructure, and its
associated investment must be fully utilized.
Consequence of NGN
• In NGN, the service layer is independent of the underlying network, and
thus a whole range of third-party service providers can offer services to
customers and the customer is not bound to take all services from only the
access provider. For example, an operator could use the same transport (IP)
network for its fixed voice, mobile telephony, broadband, and corporate
business services.
A buzzword used to sell new carrier networks
158
Drivers
• Reducing complexity of infrastructure by
establishing a single IP platform that is multi-
service and future proof
• New kind of services can be easily implemented
• Eliminating inefficient network components and
significant cost
• Reliability and performance can be equal to (or
better than) traditional networks
Source: Next Generation Networks NGN_2006.pdf
159
Drivers
Structural changes in telecommunication markets
due to
• Decrease in subscribers and revenue from the
PSTN
• Increased competition, privatisation
• Market deregulation, e.g. local loop deregulation
• Globalisation
160
Drivers
Changes in services and user needs
• Rapid diffusion of broadband Internet
• VoIP
• Cellular, 3G, WLAN, Wi-Fi
• Digital TV
161
Drivers
Technological evolution
• Creating innovative, interoperable, scalable
solutions under the IP environment
• IPv6
• Digitalisation
• CPU power and memory capacity, mass
storage
• Optics
162
Five Major technologies have impacted the
information and communication markets :
1.IP Network
2.Broadband everywhere
3.Ubiquitous wireless
4.Multi-access innovative devices
5.Open network and IT platforms
163
Drivers
• Costs (capital and operational)
• Price/performance
• Standards
• Speed of innovation and introduction of
services
Implications
• A possible consequence of new service-only operators directly
serving customers is that traditional network operators could
become pure access providers, such that all application services
(voice, video, broadband and data, etc.) are provided by third-
party service providers. This could change the business model
of the existing operators to the extent that, if not managed
carefully, it could prove to be highly disruptive.
Implications
• Another implication of NGN migration will be that the
interconnection regime also would need to change, with
traditional non-IP interconnection becoming increasingly more
expensive and less relevant. Service providers would need to
upgrade to NGN in step with the industry or they may face the
risk of lagging behind. Therefore, the migration to NGN offers
both a huge opportunity to operators, as well as posing some
serious risks. In this scenario, clear policy direction and
enabling regulation could help the industry both reap the
benefits of the migration of NGN and reduce their investment
and commercial risks.
Advantages
• NGNs essentially deliver convergence between the traditional
world of PSTN and the new world of data networks. From an
operator’s perspective, they provide a means of migrating
from the old world to the new world, delivering substantial
cost savings because of the economies of scope and
efficiencies inherent in a single converged network based on
IP.
• Firstly, across the world, existing network operators are facing
fierce competition in the market and they have to remain
competitive to survive. In order to achieve this, operators are
trying to build cost-effective businesses on the one hand and
create new business models and generate new revenue
Advantages
streams on the other hand. Operators are making the
convergence of fixed and mobile networks and the integration
of voice and non-voice services their goals because such an
approach would lower operational costs and allow greater
flexibilities for service innovation and increase their revenues.
• Secondly, the increasing service requirements from end-users
call for innovative applications and multimedia services,
flexibility of access to service, high-access bandwidth, high
quality of service etc.
Next Generation Advantages
Telco’s Advantages
• There are a number of reasons for legacy telecom companies
to move over to NGN, including:
– Existing PSTN equipment may be reaching the end of its
economical life, e.g. with ongoing maintenance support
being harder and more costly to obtain;
– Running a single converged network with common IP
platform (NGN), rather than multiple legacy networks, can
reduce operational costs;
– Innovative services can be developed to improve the
customer experience;
Telco’s Advantages
– New services can be brought to market faster and at lower
cost by using NGN.
– IP-based networks are likely to be simpler and easier to
operate and maintain than the existing legacy networks
– IP networks can provide operators with sufficient flexibility
in their cost base the possibility to reduce both operating
expenditures (Opex) and capital expenditure (Capex).
Consumers’ Advantages
• NGNs also have some important advantages for the
consumer:
- Continuity: Consumers will be able to continue to use
those PSTN services they are used to, with essentially no
change;
- Ease of migration: Consumers will be able to migrate
seamlessly to new services offered by the same operator;
- Single access for multiple services: This will be enabled by
the separation of the service layer from the network
layer;
Consumers’ Advantages
- Innovative new services: New services will have richer
functionality (e.g. personalized, location-aware), and
reduced time-to-market, since they exploit the
distributed intelligence inherent in an NGN;
- Empowerment: Consumers will have an increased
capability to configure and manage services to meet their
personal requirements.
Today Telco versus Internet
Telco Network Current Internet
Circuit switching 64 kbps Packet switching over diverse
transmission media
Well defined fixed and mobile Defined by protocols rather than by
architechure architechure
Designed for high reliability (five nines Best effort network, no QoS
99.999) and high quality of service (QoS)
Specified at national level extended to Specified at global level
global level
Main area for national regulation Open interfaces support rapid innovation
Dumb terminal, smart network Smart terminal, dumb network
173
• NGN provides the technical underpinning for
convergence, provides a single platform on
which the carriage of previously distinct
service types (video, voice, data) “converges”,
together with new and emerging services and
applications.
174
• Even though services converge at the level of
digital transmission, the separation of distinct
network layers (transport, control, service and
application functions) enables competition
and innovation at each horizontal level in the
NGN structure.
175
• NGNs can also create strong commercial
incentives for operators to bundle services,
thereby leveraging their market power across
these layers and possibly reducing
competition and innovation.
• This will need proper regulatory oversight to
prevent potential stifling of competition and
innovation and reduction of benefits to
customers and economic development.
176
• Better financial performance
– Revenue growth
– Margin protection
– Reduced OPEX and CAPEX
• Operational issues
– Obsolescence & modernization
– Reliability, resilience & quality
– Capacity & scalability
– Simpler and faster provision of service
• Competitive issues
– New service roll-out/substitution & service differentiation
– Market share growth & protection
– Convergence of voice, data and IT enables provision of new offerings
in packages
Repeated for emphasis
The specification, design, and implementation of
a proper support for convergent services.
An evolving concept, a development towards

one or more future facilities dealing with and
characterised by convergence.
Long term objectives
• convergence of telecommunication and information
services infrastructures.
• Convergence of telecommunications and IT services and
applications.
• Support for old, new, and evolving business models,
including those that open the markets to new entrants.
• Support for multiservices that include real-time and data
services, either individually or in combinations that could
include multimedia services.
• Far vision or near future?

• Different visions – Common goals
– A broad concept
• encompasses the whole development of new network
technologies, new access infrastructures, new services…
– Focused concept
• Specific network architecture and related equipments, with one
common IP core network deployed for all the legacy, current and
future access networks
• Standardization Process
• Regulatory environenment
NGN: What is different?
• Multimedia
– NGN should enable provision of wide range of services including: data transmission,
voice services, video services
• Generalized mobility
– NGN should enable provision of communication services regardless of place
• Convergence
– Network should enable provision of diverse services that nowadays are provided thanks
to different networks, e.g. data transmission networks, fixed and mobile
telecommunication networks
• Integration
– Network should integrate all existing communication networks
• Multi-layer orientation
– Networks should be multilayer, where steering, management and service provision
functions are independent from transport and access
• Open character
– Network layers should communicate through open interfaces enabling use of different
equipment from diverse hardware producers
7 March 2006 Jaroslaw.Ponder@itu.int 183

Module IV
Migration
184
Next Generation Networks: Migration
Current situation
Several types of communication networks running in
parallel, each designed for a specific service and offering
optimum performance for its particular service.
• Fixed network based on twisted copper pair for voice
communication;
• Mobile network originally designed for voice
communication enhanced by mobility;
• Cable network for television broadcasting; and
• Internet networks to provide services such as FTP, web
browsing, email, etc. often built as an overlay on top of
a fixed network.
Current situation
With technological developments and competition, the current
situation is breaking up and is changing, even if the changes are
different from network to network and from service provider to
service provider, all the changes follow an identifiable trend:
• Besides its native service, each type of legacy network is working
hard to provide Internet services, including eventually advanced
services like VoIP and IPTV;
• Each type of provider is working hard at enhancing its capacity and
features in order to provide the services of the other providers,
telecoms doing broadcasting, ISP involved in telephony, cable
adding Internet, etc.;
• The enhancements include greater bandwidth, wireless access and
mobility.
Current situation
These changes are pointing towards network evolution
(migration) towards NGN, which will harmonise the
current fragmented situation of networks and services,
and lead to better use of existing infrastructure and
provide access to new access and core networking
technologies.
• Access to services and applications independent of the
type of network;
• Use of all existing access networks to provide seamless
and pervasive resource availability;
• Use all existing transport networks to carry services.
Current situation
Complete network harmonisation is a long way
off and only operators and networks that follow
the right evolution steps will be successful and
survive. Each step must address the following
questions:
1. What does the step accomplish?
2. What is the place of the step in the ultimate
goal of NGN?
Reasons
• Migration to NGN reduces network and operational
complexity, resulting in better reliability, better customer
provisioning, greater service bundling, etc., in addition to
lower network procurement, operations and maintenance
costs.
• Service providers who do not migrate to NGNs thus face the
risk of becoming less competitive, as their costs would be
higher in comparison with an operator running a single
network, as well as not being able to commercially exploit
new emerging services (IPTV, messaging, education, fixed -
mobile converged [FMC] services etc.).
Reasons
• Migration to NGN could change the operator’s business models
completely. On the one hand, traditional operators would see
much greater efficiencies and lower costs, as well as possible
access to new services, thus boosting revenues and
profitability, and on the other, service independence could
create new category of operators, i.e. niche service providers
who are able to compete effectively with traditional network
operators for minimal investment, e.g. an IP telephony service
provider being able to provide all features of voice service
delivered by a traditional fixed operator by investing primarily
in only a server.
Reasons
With NGN migration the interconnection regime also
would need to change, with traditional non-IP
interconnection becoming increasingly more expensive
and less relevant. Service providers would need to
upgrade to NGN or face the risk of lagging behind.
Therefore, the migration to NGN offers both a huge
opportunity to operators, as well as posing some
serious risks. Clear policy direction and enabling
regulation could help the industry both reap the
benefits of the migration of NGN and reduce their
investment and commercial risks.
Drivers
For wireline providers, the transition to NGN,
both at the access and core level, is being driven
by various factors.
• Competitive pressure from traditional cable
television providers offering “triple play” (i.e.,
voice, video, and data services) – as well as
pressure from other new market players such
as alternative providers, local governments
and power companies – and their ability to
192
Drivers
offer television over Internet Protocol (IPTV)
are pushing wireline providers towards NGN.
• Expected cost savings associated with the
economies of scope deriving from the
integration of existing networks is a key driver
for core NGN migration.
• From the access network perspective,
investing in NGNs is expected to reduce the
on-going operational cost of the copper local
access networks since they allow for 193
Drivers
eliminating local exchanges, and thereby
directly linking customer premises with the
data switching capabilities higher up in the
network architecture.
• The consumers demand for an ever increasing
“need for speed”, particularly in developed
markets, has been a main driver for operators
to upgrade existing networks and, particularly
for the deployment of FTTx access
infrastructures 194
Drivers
• Investment protection
• Operational and capital costs savings
• Carrier grade reliability
• Improved service creation capabilities
• Scalability
• Improved product selection/choices
Drivers
The telecommunication market needs a
successful IP business model
• Not to replace the Internet, but to
supplement it
• Not just to sell transport capacity; but
• To capture higher value applications in a way
that rebuilds profit for providers (incl. carrier)
196
Approaches
There are different paths (not mutually
exclusive) by which “an NGN” could evolve:
• Interconnection of enterprise IP VPNs
• IP expansion of existing carrier networks
• New IP-based networks providing integrated
service
• Addition of QoS support to the existing public
Internet (carrier-grade IP)
197
Steps for Migration
One approach
Progressive migration
Versus
Revolutionary
198
Steps for Migration: One Approach
• Progressive evolution (migration): adding of
facility only as need arises
1. Preserve revenue from legacy TDM
services, thereby sustaining long term
profitability from current legacy and TDM
services.
2. Incremental CAPEX and OPEX with evolution.
3. Revenue generation from new triple play
services.
199
Steps for Migration
4. Fast time-to-market with any demanded
services.
5. Increase profitability
6. Reduce overall OPEX through the use of a
single converged network for old and new
services.
7. Risk minimization through gradual rather
revolutionary migration.
200
Steps for Migration
• Revolutionary evolution: tear up the legacy
network completely and replace it with an
NGN.
1. Potentially huge investment costs.
2. Potentially sharp CAPEX and OPEX.
3. Potential loss of customers and revenue.
Question: Given the current state of operator
networks in your country, which approach is
most appropriate?
201
Steps for Migration
Example of Progressive Migration
1. Service convergence and access network

development;
2. IP-based service conversion and managed IP
network development;
3. Network integration and service extension.
Steps for Migration

development
Service convergence means an existing network can
provide customers with same service from different
networks. For example, TV service on a PC via PSTN,
on a mobile phone, or on a TV set via cable. Access
technologies and delivered QoS may be different .
Steps for Migration
development
Each service has its QoS requirements such as bandwidth,
jitter, delay, data error rate. Service convergence will
demand enhancements in the capabilities of access
networks.
Access network development would require
• Increased access bandwidth;
• Reduced delay;
• Support for portability and mobility
Steps for Migration
network development.
IP-based service conversion will replace legacy
network services with IP-based ones,e.g., VoIP
for telephony. This decouples services from
underlying transport, allowing the
addition/removal of services without affecting
the underlying network or changes to the
underlying network without affecting services.
Steps for Migration
During conversion, new and enhanced features
could be added to the service.
Decoupling affects QoS and security which are built
into the legacy network. With decoupling, the
legacy network can now carry any service with
different QoS and security demands; the previous
legacy QoS and security are no longer applicable.
Steps for Migration
The decoupled network must be transformed
to provide different levels of these features
according to service demands.
Example: Using an appropriate adapter, a
laptop can access a TV programme via fixed,
mobile, or cable network.
Steps for Migration

Managed IP network development will
transform the best-effort IP network to one
that delivers required QoS, security, and
other features.
Steps for Migration
3. Network integration and service extension
Network integration will result in the
traditional fixed, mobile, and cable networks
being integrated to form a common transport
pool for creating end-to-end connections
with required QoS and security.
Service extension will enable the creation
and delivery of new services and applications
for the end user.
Steps for Migration
Progressive Migration
While it may be prudent to follow the steps

successively, it is not required that each step
must be implemented. A step could be skipped
as the situation dictates.
Steps for Migration
Step 1 Fixed: Access to the Internet and Converged
Internet/Telephony services
Step 2 Fixed: Network consolidation and
introduction of new multi-service access
nodes
Step 3 Fixed: Voice over Packet for Trunking
Step 4 Fixed: Voice over packet up to access level
Step 5 Fixed: Multimedia Services
Steps for Migration
Notice in the illustrations that illustrate the five
steps the key role of softswitches or gateways.
Softswitches transform signals from one format to
another between the sending and receiving
networks to permit communication.
Steps for Migration
Steps for Migration
Steps for Migration
Steps for Migration
Steps for Migration
NGN Transition – fixed telephony
218
Steps for Migration
Some critical problems of IP networks:
1. Insufficient IP addresses with IPv4; solved
with IPv6.
2. Longer call setup times.
3. Non-guaranteed end-to-end QoS.
4. Slow introduction of IPv6.
Steps for Migration
• Compared to many developed telecom markets, Sub-Saharan
countries have less network legacy products (limited
deployment of ATM, ISDN etc.). Various telecom service
providers, including incumbents, could be in the process of
finalizing their plans for deployment of NGN. This may be
implemented in a phased manner, starting with the core
network and then for access network and service provision.
Next Generation Networks: Migration in
developing countries
• Compared to more developed
telecommunication markets, service providers
in developing countries generally have less
baggage of legacy products in their core
networks (e.g., ISDN, IP, ATM, FR, and SHDS).
This makes it easier for them to migrate to all
IP-based systems, thus leapfrogging
technologies and going to core NGNs
straightaway.
221
• In the case of access networks, limited
deployment and penetration of copper
networks in particular, and the reduction of
the costs of fibre, can also facilitate
“greenfield” deployment of FTTx projects.
Thus, they also will be able to leapfrog
access technologies, where economically
viable, and go directly to NGN access
infrastructure.
222
In certain countries the lack of adoption or
implementation of complex access-based ex
ante regulations can be viewed as an
advantage as developing countries are
confronted with fewer regulatory burdens and
commitments to consider and/or maintain.
223
Other Considerations
For regulators, migration to the NGN world can
be characterized by the following elements:
• Traditional market boundaries have become
increasingly blurred in the presence of IP-
enabled services and fixed-mobile
convergence.
• Regulatory frameworks which generally were
designed for a traditional circuit switched
224
Other Considerations
environment may not be equipped to address
an IP-based environment where multiple
services can be offered over a single platform.
• Access providers and network operators must
make intensive investments in upgrading and
building new infrastructures and are looking
for regulatory certainty.
• New potentials for bottleneck structures and
market dominance in the telecommunications
industry can emerge
225
Role of the Regulator
With the emergence of NGNs, regulators are
faced with the issue of deciding whether to
implement an ex post regulatory model, or
maintain ex ante regulation.
Ex ante regulation refers to the process of
establishing specific rules and requirements to
prevent anti-competitive or otherwise
undesirable market activity by operators before
it occurs.
226
Ex post regulation, which relies primarily on
competition law, by contrast calls for
establishing few or no specific rules in advance,
but applying regulatory measures to remedy a
market failure or anti-competitive situation.
227
Regulatory Considerations
• It is necessary to initiate a process of consultation with
stakeholders on various regulatory issues so as to bring clarity.
• The overall approach should be such that the regulatory
issues do not hinder the deployment of new network
technologies, and at the same time new technologies should
not be able to exploit the regulatory advantages so as to
disturb the level playing field among service providers.
• The main regulatory issues involved are related to
interconnection, QoS, transition, emergency access, security
aspects, etc., which may need detailed ex-ante regulation.
Regulatory clarity on these issues can help reduce the
investment risk for operators.
Migration must be driven by basic principles

• Continuity of services offered to end-users
• Inter-working between new and old technologies
• Cost control of the migration process
Migration should above all be driven by economic
considerations
• Network consolidation and optimization and/or
New revenues driven from new services
Questions
What is the likely time frame for a country to
achieve complete migration to NGN core. In what
timeframe is the migration in other layers like
access and service layer likely to be achieved? What
could be the NGN migration time frames in urban
and rural areas?
Module V
Regulation
231
Regulation
V.1 Regulatory Issues and Challenges
V.2 Responses
V.3 Role of Regulator
V.4 Checklist
Regulation
V.1 Regulatory Issues and

Challenges
Next Generation Networks: Regulation
Regulatory Issues or Challenges
• Historically (traditionally), the central
objective of regulating the telecommunication
industry was to ensure the highest
performance possible of POTS in terms of
accessibility, affordability, and quality of
service (the five nines). In general, the
regulatory policy was aimed at a natural
monopoly
234
Regulatory Issues and Challenges
• Liberalization lead to diversity in the types of
services offered by competing companies and
accompanying regulatory bodies or the
formation of different components of the
regulatory structure to cater to each type of
service.
235
• With the development of new technologies
and the trend towards convergence of
technologies, services, and markets, current
regulatory schemes are under increasing
pressure to adapt.
Question: Is a converged regulatory structure
required to deal with these developments or
are current methods capable of dealing with
changes in their respective spheres?
236
Much of the debate about the regulation of next

generation access focuses on the question:
should other operators be allowed mandated
access to this infrastructure, and if so on what
terms?
237
Regulation Regulatory Issues and
Challenges
• How can the regulator ensure that efficient

incentives for investment in next generation
access infrastructure are not distorted, either
by existing regulation, regulatory uncertainty
or anti-competitive behaviour?
238
• NGN requires creation of incentives to invest (for both
new entrants and incumbents) because
– NGN is still seen as risky investment.
– Nowadays most investment will be done by
incumbents.
– Broadband policies facilitate migration to the Internet.
– NGN still requires high R&D expenditures that
nowadays are mostly covered by hardware vendors.
– Regulatory uncertainty negatively impacts NGN
expansion. Therefore,
– Regulations should encourage innovation and long-
term investment, and removing barriers to the
development of emerging markets, which will require
access to NGN services and systems, and
interconnection.
Challenges
• How can the regulator ensure the

continuation of competition after the
deployment of next generation access
infrastructure? What are the risks and
opportunities for competition arising from
next generation access?
240
• NGN strengthens competition, but….
Maintaining the open, fair and competitive market, both in
infrastructure and services and enabling the development of
nascent markets in competition require the regulator to
examine the following issues that related to fair competition
and a level playing field:
– NGN creates new entrance opportunities for operating
companies as well as newcomers
– NGN creates new markets and reinforce position of some
market players
– Significant market power approach and promotion of fair
competition; new definition of relevant markets
– Balance between ex-ante regulations and ex post remedies
– Effectiveness of self correcting forces in a competitive
marketplace
Challenges
These questions lead to a dilemma:
• Promotion of competition may reduce or
distort operators’ incentives to invest in NGAN
infrastructure.
• Or, permitting higher profits for operators’
investments through regulatory forbearance
may reduce competition.
242
• Key question concerns the effects of enduring
economic bottlenecks on competitive environment.
Economic bottleneck means “those parts of a
network where not only does one or more operator
have significant market power (SMP), but where
effective, sustainable competition is unlikely to
emerge in the medium term as a result of difficulties
for competitors to replicate access infrastructure.”
Source: OFCOM (2006), “Regulatory challenges posed by next
generation access networks”
243
To ensure competition and efficient investments incentives,
regulation should address two issues
1. Should regulation mandate access to next generation access
networks (NGAN) which are enduring economic bottlenecks
so as to promote competition? If so, what are the terms?
2. How are existing regulations affected by NGAN
deployments? Ex ante versus ex poste regulation.

244
As questions of public policy, two issues arise:
1. What are the social benefits that can arise from NGAN
deployments?
2. How can NGAN lead to an emerging digital divide and how
should regulations address it?

245
• Will market behaviour be sufficient to ensure competition

without the need for wholesale regulation?
• Do incumbents still have the means to consolidate their
market positions through vertical integration?
246
Central objective is the development of
regulation in an age of convergence. What are
the appropriate regulations and policies for
NGN increasingly based on convergence? Are
completely new regulations/policies required
or would it be sufficient to modify existing
ones for legacy systems?
247
Principle
• Neutrality
Rapid technological changes underscore the
need for policy and regulation to be based on
principles that support consumer interests,
such as competition policy, independent of
specific technical aspects of networks.
• Shift of competition from physical to
application/service layer.
248
Principles
• Technology and provider neutrality – to promote
investment and innovation
• Market driven, commercial imperative to drive investment
and technology decisions
• Light touch regulation: reduce barriers to entry
• Consistent and transparent regulation
• Regulation of non economic goals to be proportionate
• Reduced or no limits on foreign ownership
• No restriction on licences within technical or spectrum
constraints
• Withdraw from regulation at levels not required
249
Principles
• Develop varying regulatory solutions for different products
• Promote infrastructure investment
• Expand capacity for external connections (landing stations;
satellite etc)
• Removal of bottlenecks to access by end users to telecom
services
• Fair regulatory framework for interconnection
• Promote effective competition and protection of consumers
interests
• Comply with WTO non discrimination requirements
• Regulate to foster market growth to satisfy user needs
250
Objectives of regulations
1) Keep track of technologies
2) “Just in time” response by adjusting policies
and regulations
3) Provision of access to hitherto unserved
areas by taking advantage of technological
developments
4) Leverage communication technologies for
251
social and economic development and
competivity
• Forward-looking regulation to cover transition
from PSTN to IP
• Certainty for the market
• Clarity for operators / investors about
direction of future investment
252
• Focused regulation with effective sanctions to ensure
delivery; allowing for
– Deregulation where regulator is a substitute for
market competitiveness
– Support of competition to drive down prices for
consumers / businesses
– Ensuring strong communications sector able to
underpin competitiveness
– Supporting innovation and competitive new products
/ services (eg next generation broadband, IPTV, VOIP)
253
At the NGN core, key regulatory challenges revolve
around interconnection rather than access. The
two are interrelated, but they are not at all the
same. For purposes of this discussion,
• Interconnection can be viewed as the ability of
one network operator to enable its customers to
link to the customers of another network
operator.
Source: Marcus and Elixmann, Regulatory approaches to Next Generation
Networks (NGNs): An International Comparison
254
• Access can instead be viewed as the use by
one network operator of certain capabilities of
another network operator as a component of
the former’s service, and in support of the
former’s customers. In other words, with
access one operator effectively leases capacity
from another.
Source: Marcus and Elixmann, Regulatory approaches to Next
Generation Networks (NGNs): An International Comparison
255
Interconnection
• Regulations for traditional PSTN network and voice service
where charging was based on time and distance.
• With NGN’s separation of service/application and transport,
– Time and distance unimportant for cost of service
– Access and service not tied to a specific network
– Providers can offer services without owning access network
• Regulation needed for
– Any-to-any or end-to-end connection
– New charging rules under NGN
– Defining level of interconnection: access or service
– “equivalence of inputs”
• Consumer protection: NGN character requires
intensified efforts in field of consumer interests
protection
– Universal Service
• Access to the communications infrastructure or
provision of telephone services (mobile
telecommunications and broadband)
• Any location including access while on the
move or geographic restrictions
• Funding
– Consumer emergency calls
257
• Consumer protection: NGN character requires intensified
efforts in field of consumer interests protection
– Lawful intercept
– Quality of services
– Network resilience
– Authenticated caller or sender identification
– Disability assistance
– Data protection and privacy issues
• Promoting partnerships or strategic alliances.
• Different regulatory frameworks of ICT
applications/services.
258
Licensing
• Used for
– Controlling entry into the market
– Imposing regulatory obligations
– Ensuring implementation of policy objectives
• Technology neutral
• Allow for the provision of multi-services on the same platform.
• Must evolve with technologies and markets, otherwise
– Act as a barrier to market entry and, thus, impede competition
– Impede the deployment of new services
– Hinder technological development and creation of new services
– Bar the introduction of alternative services.
Numbering
• Initially developed for traditional voice telephony. With the coming
of convergence, IP-based NGN, review of regulations necessary.
Should number be assigned for VoIP?
– Assignn geographic numbers
– Assign special numbers that take into account the nomadic nature of
VoIP.
– ENUM
• Tackles the shift from PSTN to IP network
• Allows for number conversion from one system to the other
• Since NGN allows for fixed and mobile ubiquitous communication,
need for policies for
– Fixed to mobile convergence
– Number portability: ability to maintain same number when changing
service providers
• National Security and Critical Infrastructure

Protection
– Network attack mitigation
– Public safety emergency and law enforcement
assistance
– Priority access during or after disasters
– Service restoration
– Analysis and reporting of network metrics and
outages
Jaroslaw.Ponder@itu.int
Regulatory Consideration for NGN Migration
Licensing Consider appropriate regime for classes and types of licences and licensing
criteria, where licensing is required. There is a shift away from service and
technology specific licensing towards horizontal licensing.
Numbering To ensure access to numbering resources and ensure that numbering, naming
and/or addressing schemes encompass legacy, transitional and NGN services
and associated directory services.
Interconnection Regulatory considerations include whether new interconnection models may
be required; the impact of IP based networks and traffic on current
interconnection arrangements; ensuring no discriminatory access behaviour;
defining the parameters of interconnection in a multi-service environment and
whether there will still be a need for mandated wholesale interconnection
regimes, as well as a revision of the charging principles.
Standards and Regulatory considerations include mandating standards and interoperability
Interoperability between operators and new entrants to ensure no delays in the introduction of
new services and providers in retail markets and to coordinate standardization
activity where no specific body has been established.
Source: Cohen, T., Next Generation Networks (NGN) Regulation Overview, ITU Global Symposium for Regulators, 5-7 Feb.,
Cohen_NGN_Overview_Final.2007pdf
Regulatory Consideration for NGN Migration
Spectrum The main regulatory consideration is ensuring equitable access to spectrum
required by new NGN operators and services and ensuring that competition is not
hampered through legacy spectrum assignments to incumbent operators for the
provision of fixed, fixed-mobile and mobile services.
Universal Service Affordability and accessibility are key policy goals that should not be abandoned
or altered in a NGN environment. There is ongoing relevance to the universal
service obligations and levies for NGN migration, whilst these are not onerous on
operators such that they compromise in infrastructure development. Regulatory
questions include whether VoIP providers should contribute to a universal service
fund; how to structure universal service contributions and to which technology or
service these should attach.
Consumer Issues that require attention include but are not limited to, quality of service;
Protection priority access to emergency services; the provision of location information; rights
and presence management, number portability, operators’ liability; privacy and
security. Regulators around the world have started industry wide consultations of
the consumer aspects of NGN migration to ensure that consumers are in no way
adversely affected.
Source: Cohen, T., Next Generation Networks (NGN) Regulation Overview, ITU Global Symposium for Regulators, 5-7 Feb.,
Cohen_NGN_Overview_Final.2007pdf
Voice over Internet Protocol (VoIP)
• Should VoIP be regulated?
• With the growth of voice on IP networks and the
attendant decline of voice revenues of incumbent
providers, legacy providers are migrating to NGN
to augment their revenues. VoIP would therefore
seem to need specific regulations. Clarity on the
VoIP regulatory framework is necessary: Is VoIP a
public telecoms services like POTS or simply one
of the services of the Internet?
Examples of regulatory impediments to multiple play
Impediment Implication
Restrictions on new entry
Internet service provider with its own network The regulatory environment prevents networks
authorized to provide Internet service but from delivering all their capability to customers. The
prohibited from providing voice service (VoIP). financial viability of network investment is
damaged, and deployment of services restricted.
An incumbent telephone company invests in a high The regulatory environment has delayed
speed broadband network, but faces delays in obtaining implementation of expanded service or service
authorization to provide video content services such as choice to customers, and damaged the
cable TV or IPTV service. attractiveness of network investment.
Examples of regulatory impediments to multiple play
Impediment Implication
Non level playing field
An incumbent telephone company may have regulatory The regulatory environment is not providing a
obligations such as local loop unbundling, payment to technology neutral level playing field. As a result,
universal service funds, or price control that do not customer choices are distorted and there is a loss of
apply to cable TV operators, or re-sellers, providing the economic efficiency.
same or similar services.
An incumbent telephone company may have better The regulatory environment is not providing a
access to public rights-of-way than cable TV operators. technology neutral level playing field.
Radio spectrum is available at a nominal price to some As convergence progresses, with more video
users (such as broadcasters) but is only available to content distributed over mobile or broadband
others at commercial prices that reflect scarcity value wireless access networks, the need to progress
(such as cellular mobile or broadband wireless access all commercial users towards a common system of
operators). economic pricing for spectrum becomes more
important.
Overall policy challenges
• Ensuring proportionality of regulation including
forbearance.
• Ensuring a technologically neutral regulatory
framework, allowing the players freedom of choice.
• Finding the optimal balance in spectrum
management. NGN attaches great importance to
wireless technologies. The optimal spectrum
management should become objective of all
regulators
267
In summary, regulation is concerned with
• Competition
• Investment in infrastructure
• Innovation
• Public needs
• Socio-economic aspects
• What are the regulatory intentions in your
country?
• What should be regulated? Technologies,
services, operations.
• Given that Sub-Saharan Africa is not overly
burdened by a large variety of services and
network types, is this a regulatory advantage?
269
Regulation
V.2 Some Responses

Some responses
• Forbearance or equality of service: In the debate
about regulating NGAN turns around two choices:
1. Forbearance – the removal of any requirement that
owners of NGAN provide access to other operators.
2. Equality of access – in providing access to other
operators, owners of bottleneck infrastructure must
offer exactly the same wholesale products, under
exactly the same conditions, as they provided to
themselves or their divisions.
271
Some responses
• Forbearance or equality of service: Suppose
some operators NGAN are likely to be
enduring economic bottlenecks, should
regulations require them to provide wholesale
access to other operators on the basis of
equality of access? Or should the regulator
show forbearance from mandating such
provision at least for a given period of time?
272
Some responses
Forbearance
• Permanent Forbearance: access by other
operators to enduring economic bottlenecks is
not required in the future.
• Time-limited forbearance: access by other
operators to enduring economic bottlenecks is
not required for a pre-defined period of time.
273
Some responses
Type of Advantages Disadvantages
Forbearance
Permanent Avoids reduction 1. Limits competition to owners of NGAN.
in investment due 2. Limited or no deployment of new NGAN by new
to fear of risk of entrants due to high costs.
open competition. 3. Distortion of market.
- forbearance in absence of competition,
monopoly-like returns on investments.
- forbearance on new technology deployments
lead to inefficient and rapid technological
investments made to avoid regulated ones.
- forbearance on specific technology lead to
inefficient selection of NGA solutions
- forbearance on competition lead to loss of
consumer benefits (choise, lower prices, rapid
innovation.
274
Some responses
Type of Advantages Disadvantages
Forbearance
Time limited Provide monopoly 1. Uncertainty about NGA investments which may
rents as incentives take longer to recover than the forbearance
to owners of period.
bottlenecks for a 2. Competitors may be adversely affected for a
limited period. long time after the forbearance period (new
services introduced during forbearance, time
and cost for bottleneck owner to offer services
on the basis of equality of access).
275
Some responses
Forbearance is appropriate when there is
widespread and effective competition in the
provision of end-to-end NGAN.
276
Some responses
With the emergence of NGNs, regulators are
faced with the issue of deciding whether to
implement an ex post regulatory model, or
maintain ex ante regulation.
Ex ante (before the fact) regulation refers to the
process of establishing specific rules and
requirements to prevent anti-competitive or
otherwise undesirable market activity by
operators before it occurs.
277
Some responses
Ex poste (after the fact) regulation, which relies
primarily on competition law, by contrast calls
for establishing few or no specific rules in
advance, but applying regulatory measures to
remedy a market failure or anti-competitive
situation.
278
Some responses
Regulator’s Decision Tree
NGN Deployment
Ex Post Ex Ante
Regulation Regulation
Mandated
Permanent
Access
Forbearance
Obligations
Phase out of
Time-limited
existing ex ante
Forbearance
obligations
Some responses
Ex ante and ex post checklist
1. Is there sufficient inter-modal competition?
If significant prospects exist for wide scale,
competing end-to-end access infrastructure
deployments that will provide competitive
constraints to incumbent operators’ ability
to leverage any position of market power,
then forbearance from regulating NGNs can
be seriously considered.
280
Some responses
2. If so, is a phased-out policy needed to
transition from an ex ante to an ex post
regulatory environment?
If sufficient competition is determined to
exist, then ex post regulations could be
used to maintain a competitive market
situation. Some ex ante regulations can
then be phased out.
281
Some responses
3. Is time-limited forbearance or a regulatory
holiday necessary?
Depends on the market conditions.
4. Does a bottleneck situation need to be
addressed?
If so, it may be necessary to employ the
equivalence of inputs to prevent the
foreclosure of competition.
282
Some responses
Equivalence of inputs means that wholesale
products sold by the bottleneck operator
must be identical to those it sells to its
competitiors.
283
Some responses
Regulatory Approaches
• There are a number of possible approaches to be considered
for the issue of NGN regulation.
• One possible route is a multi-stage process that builds on
previous stages. For example, one could start by building
national awareness amongst the stakeholders, say, through
formal consultation.
• The next stage could possibly be for the regulator to take a
lead in building industry consensus on what policy (timetable,
competition, interconnection principles etc.) the industry
would like best to meet their objectives and reduce risk.
Some responses
Regulators across the world believe that this step is best taken
after sufficient momentum is built and should not be hurried
through.
• The final stage could be specific regulation. It is given to
understand that detailed regulation is desirable, but it can be
implemented in steps, e.g. specific interconnection products,
QoS regulation, cost-based access charges etc.
Migration
V.3 Role of the Regulator

Several options for regulators dealing with the
migration to NGNs:
1. Extending existing regulations/policies to
NGNs, or
2. Permanent forbearance from broadening
current regulations/policies to NGNs.
3. Transition to ex ante regulation through time-
limited use of forbearance
287
Several options for regulators dealing with the
migration to NGNs:
4. Transition to ex poste regulation through
phasing out of regulatory obligations.
288
Note
• Choice of option depends on the specific
conditions of a country;
• Necessity to assure regulatory certainty for
incumbent and competitive/alternative
providers of services;
• Necessity to assure innovation while ensuring
competition.
289
• The regulator does/does not have a
responsibility to provide incentives to
operators to make particular investments. A
thorny issue. What should be the role of the
regulator?
Source: OFCOM (2006), NGA
290
There are a number of possible approaches to be considered for
the issue of NGN regulation.
• One possible route is a multi-stage process that builds on
previous stages. For example, one could start by building
national awareness amongst the stakeholders, say, through
formal consultation.
• The next stage could possibly be for the regulator to take a
lead in building industry consensus on what policy (timetable,
competition, interconnection principles etc.) the industry
would like best to meet their objectives and reduce risk.
Regulators across the world believe that this step is best taken
after sufficient momentum is built and should not be hurried
through.
• The final stage could be specific regulation. It is given to
understand that detailed regulation is desirable, but it can be
implemented in steps, e.g. specific interconnection products,
QoS regulation, cost-based access charges etc.
Regulation
V.4 Regulatory Check List

Regulatory Check List
1. Does the regulatory framework present any
market entry barriers? Does it support full
competition in the market and service
providers to offer multiple services? Are
there any services (e.g., subscription
television) restricted to a number of service
providers?
294
2. Does the current licensing framework
facilitate the provision of different services
different platforms (i.e., technology
neutrality)?
3. Are VoIP and other IP-based services
allowed? If so, are they regulated in equal
conditions as traditional services or does IP-
specific regulation exist?
295
4. What are the regulatory policies for these
new technologies and services with regard to
numbering, spectrum, interconnection,
universal service, and rights of ways and
shared deployment?
5. Does the regulatory framework promote
diversification of access networks?
296
6. Are institutional and structural changes of
the regulatory authority required to address
an NGN environment?
7. Does the regulatory framework encourage
and facilitate public (municipal) initiatives?
297
Checklist of Issues for Regulators to Consider
with Regard to Convergence
• Does the regulatory framework facilitate the provision of
different services over different platforms (e.g., technology
neutrality)?
• Does the regulatory framework support full competition?
• Does the regulatory framework allow service providers to
offer multiple services?
• What are the regulatory policies for these new technologies
and services with regard to numbering, spectrum, universal
service, and interconnection?
Checklist of Issues for Regulators to Consider
with Regard to Convergence
• Does the country’s legal framework contain the necessary
legislation to support an ICT
environment (e.g., intellectual property laws, computer crime,
electronic transactions, data
privacy and security)?
• How much turn-around time and process is required for the
country's legal framework to
respond to future changes in the sector?
Recommendations
• If they have not already done so, regulators and policy-makers can begin to consider
the processes required to address IP based and full NGN transition. This may include
research, training, consultations with the industry and the public.
• For those markets that have not reached mature levels of competition, regulators
and policy makers can explore measures to facilitate competition and promote
efficiency in telecoms operations to facilitate growth and bring about improvements
in roll-out and services. For example, unbundling the local loop to avoid duplication
in the access network.
• Regulators can encourage a competitive market based outcomes rather than
regulatory intervention, which should be used to pre-empt and address market
failure.
• Universal access policies will remain vital. However, strategies to achieve these need
to move away from protection of existing networks to more competitive strategies
where pent up demand can be met more efficiently by the market and obligations
to address market failure spread among all players.
300
Recommendations
• Policy-makers and regulators, rather than promoting certain technologies through
technology and service-specific licensing, can explore a move towards unified and
technology neutral licensing.
• Consumer education and participation is critical and it is the regulators
responsibility, in consultation with operators to educate consumers on benefits and
risks of new services and technologies. This could be effectively communicated to
consumers and enforced for operators through the publication of guidelines or
codes of good practice.
• Voice communications are starting to migrate away from the PSTN and the
migration onto the Internet will gather pace. Regulators need to ensure that the
consumer focused and regulatory issues are addressed in advance.
• Policy should encourage the continued operation and maintenance of legacy circuit
switched PSTN until users are successfully migrated to new networks and services.
• Policy should create reasonable certainty for the industry and investment.
301
Recommendations
• Where industry self regulation is feasible, the regulator may consider the establishment
of a self-regulatory body representative of all stakeholders in a convergent industry,
particularly in relation to development of standards.
• Where content concerns emerge, (e.g. advertising, objectionable content, fraudulent
behaviour, etc) policy makers should consider appropriate content protection rules and
institutions to enforce them depending on the particular circumstances and context in
that particular country. Many of these are effectively managed through industry self
regulation and codes of conduct.
• Where relevant, regulators should be ready to accelerate the type approval process for
NGN devices and rapid deployment. A memorandum of understanding may be helpful,
as is the case with regard to GSM.
• Policy makers should address the issues of security and access to emergency services
for consumers.
• A roadmap should be developed to revisit laws and regulations (specifically addressing
interconnection and access issues) on an ongoing basis to ensure their suitability for
sound NGN development.
302
• Absolute independence of regulatory bodies is
neither possible nor desirable.
• A regulator should not set and implement its
own agenda.
• “Independent” regulators are expected to be
subject to government oversight and a system
of checks and balances.
• Effective regulation that supports sustainable
investment requires some independence of the
regulator from political influences, especially on a day-
to-day or decision-by-decision basis.
• The body must be an impartial, transparent, objective,
non-political enforcer of government-determined
policies by means set out in controlling statutes of the
regulator, free of transitory political influences.
• The regulator should also be independent from the
industry that supplies ICT services.
• The regulator should implement the policy of the
government and only make decisions that are within
its legal authority.
• However, regulators need insulation from political
intervention, so that the regulatory process is not
politicized, its decisions are not discredited, and the
policy of the government is implemented.
Independence safeguards
• providing the regulator with a distinct statutory
authority, free of ministerial control;
• prescribing well-defined professional criteria for
appointments;
• involving both the executive and the legislative
branches of government in the appointment process;
• appointing regulators (the Director General or
Board/Commission members) for a fixed period and
prohibiting their removal (subject to formal review),
except for clearly defined due cause;
• where a collegiate (Board/Commission) structure has
been chosen, staggering the terms of members so
that they can be replaced only gradually by each
successive government;
• providing the agency with a reliable and adequate
source of funding. Optimally, charges for specific
services or levies on the sector can be used to fund
the regulator to insulate it from political interference
through the budget process;
• exempting the regulator from civil service salary
limits to attract and retain the best qualified staff and
to ensure adequate good governance incentives; and
• prohibiting the executive from overturning the
agency’s decisions, except through carefully designed
channels such as new legislation or appeals to the
courts based on existing law.
Module VI
Standardization
309
Standardization
As a evolving technology, work on standards
continues in many areas, including
• Architechure
• Protocols
• End-to-end quality of services
• Service platforms
• Network management
• Lawful interception
310
Standardization
As a evolving technology, work on standards
continues in many areas, including
• security (privacy, authentication,
authorisation)
• Accounting
• Inter-network interconnection and operation
311
Standardization
Standardisation work is being undertaken by
Several international bodies
• IETF
• ITU-T
• ETSI (TISPAN)
• TIA
• ATIS
312
Standardization
Besides some big market players try to set
industry standards
• Microsoft
• CISCO
• Intel
• Juniper
often by means of industry consortia often by
means of industry consortia (Infranet Initiative,
TCA, Liberty Alliance, …..)
313
Standardization
Are we involved in the development of
standards?
Should we be involved?

NGN

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Next Generation Networks

Botswana Telecommunications Corporation

Dr. Ndeh Ntomambang Ningo

Souce: Salina, J. L. and Salina, P., Next Generation Networks:

Vendor Operator Customer

For this model the fundamental issue is: Based

Vendor Operator Customer

3. As network technology continued to develop and client

The problem with this multi-network approach is that it has

Next Generation Networks

All aspects of NGN

From a business model characterised by vertical

To a business model with a single transport

development and provision of new services,

• Network and IT come together.

Source: OECD, CONVERGENCE AND NEXT GENERATION NETWORKS, OECD Ministerial

• Broad term referring to the merging of

A tendency for different ICT domains to come

A process without a clearly defined end point.

• Driver of innovative services to market

• Creation of new market paradigm (driving the

A key factor in the transformation to a new

Service A Service B Service C Services A, B, C

Network A Network B Network C Backbone Networks

Businees Model Will Change

1. Service convergence or “multiple play”: single network carries

1 and 2 are technological while 3 is economic or business.

Multiple play is a subset and a consequence of

multiple services. any combination of acquire, merge, or

networks more efficiently, permits mobility for services or markets, lower

Smaller firms, especially dominance, less diversity

markets and alters entry and network-independent the market structure,

Opportunities and Challenges of Convergence

Opportunities and challenges of convergence

that convergence may existing policy that convergence can

to prevent new services are handled on a case-by- policy, promotes

• Users lose potential • Growing uncertainty accelerate.

Source: A. Scrase, Fixed-mobile convergence, 2005

Source: A. Scrase, Fixed-mobile convergence, 2005

Mobile – Fixed Convergence (FMC)

Source: A. Patel, Introduction to Fixed/Mobile

Source: A. Scrase, Fixed-mobile convergence, 2005

Service A Service B Service C Services A, B, C

Network A Network B Network C Backbone Networks

• Access specific terminals

Next Generation Networks

Source: Presentation for 22-12-2006- NGN meeting final.pdf

Single Integrated Pipe High-Speed

HFC (Cable) Network using DOCSIS transport

An evolving concept, a development towards

Source: Next Generation Networks NGN_2006.pdf

An evolving concept, a development towards

• Far vision or near future?

7 March 2006 Jaroslaw.Ponder@itu.int 183

1. Service convergence and access network

1. Service convergence and access network

2. IP-based service conversion and managed IP

While it may be prudent to follow the steps

Migration must be driven by basic principles

V.1 Regulatory Issues and

Much of the debate about the regulation of next

• How can the regulator ensure that efficient

• How can the regulator ensure the