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Ndeh Ntomambang Ningo Department of Electrical and Telecommunication Engineering Ecole Nationale Supérieure Polytechnique University of Yaoundé I Yaoundé, Cameroon firstname.lastname@example.org Telecommunications Regulatory Board Cameroon
Next Generation Networks
Botswana Telecommunications Corporation Gaborone, Botswana, February 23 – 27, 2009
Next Generation Networks
Introduction and Background
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 nowcombined 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.
Background: Information Age
“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.
Background: Information Age
“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
Background: Information Age
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.
• Ascendancy of the Internet Protocol (IP) and service pull of the Internet. • Dominance of data (80/20 to 20/80 voice/data) 7 .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.
Background: New Communication Era 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 .
Background: New Communication Era 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 .
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. and affordability of IP led to its pervasiveness. 10 . With all application and networking developers having access to the same information regarding the IP protocol structure. 2005. IP is now everywhere.. research and development efforts become collaborative and self-perpetuating. Cisco Press. R. From a grass roots beginning.8-9.Background: New Communication Era 1. Next Generation Network Services. the open nature. The service-oriented nature of the connected Internet provided service pull. which rapidly led to IP's ubiquity. p. Because of these enablers and the Internet. flexibility.” Source: Wood. mutual development. and control that the Internet Protocol suite enjoys. Internet Protocol “Perhaps the most appealing benefit is the openness.
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 .Background: New Communication Era Key Technologies underpinning the new era 2.
Background: New Communication Era Key Technologies underpinning the new era 3. Wireless – – – – – – Untethered Enables mobility Increasing capacity Variety: WIMAX. WIFI Variety of uses Less civil engineering works 12 .
Background: New Communication Era Radical shift From Technology Push To Service Pull 13 .
Background: New Communication Era Service pull of the Internet “The Internet is a post office. R. Businesses use the Internet as a living brochure. a utility. The Internet is one definitive example of service pull. a filing cabinet.” Source: Wood. an order taker. a map. These embedded services save time and. pull users into digital commerce and entertainment. a newspaper. and an auto dealer. a mall. an investment broker. p. a sales and pricing catalog. a television. a real estate agent. a school. a ticket broker. and a global street address. a pharmacy. a radio. a distributor. a grocery store. a catalog. a doctor. a teacher. It's also a phone book. a market. a sales and customer service channel. a bookstore. and a community. a library.. an advertiser. a car salesman. a flower shop. and a delivery boy. Next Generation Network Services.8-9. 14 . a magazine. a digital neighborhood. therefore. a travel agency. a weather forecast. a bank. 2005. a banker. It's even a mailman. Cisco Press. a brokerage.
Background: Incumbent’s Challenges
“Today, traditional telecom operators are facing two life-anddeath 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.
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.”
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.
Background: Incumbent’s Challenge 1: Become more than an ISP
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.
Background: Incumbent’s Challenge 1: Become more than an ISP
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.
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)
West Sussex. P. Wiley. Next Generation Networks: Perspectives and Potentials. 2007 21 . J. and Salina..Background: Incumbent’s Challenge 2 Needs driven business model Souce: Salina. L.
and maintains the technology. • Operator buys. Vendor guides and masters the development of technology and the services arising from the technology. • Operator woes customers to buy whatever new services and devices from the technology.Background: Incumbent’s Challenge 2 Technology-driven Model Focus on the technology. • • • • 22 . Vendor of technology is driver. Operator is basically passive. introduces.
what service can be sold to the customer? 23 .Background: Incumbent’s Challenge Technology-driven Model Vendor Operator Customer For this model the fundamental issue is: Based on existing and future technology.
• Vendor must consistently attempt to understand operator’s need in order to produce innovative.Background: Incumbent’s Challenge 2 Customer-needs-driven Model • Technology is beyond the needs of customers. 24 . fast-tomarket. and cost-effective technology . • Operator must focus on the service valus to the customer. using them to guide business strategy • Operator must understand technology in order to make correct choices for infrastructure. • Operator preoccupied with customer’s needs.
Background: Incumbent’s Challenge 2 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 .
such as the public switched telephone network (PSTN) or the mobile telephone network. 2. rather than replacing the PSTN. However. operators typically built new networks for data. which they ran in parallel. As demand for data communications developed. called the overlay network. Historically. a packetswitched public data network (PSPDN). e. which was optimally designed to carry voice. incumbent operators typically operated one network. These new overlay networks were designed specifically to carry data traffic.How? 1.g. 26 . the incumbents adapted their networks to carry data traffic.
smaller economies of scale. operational inefficiencies. maintenance issues.) Consequence: The problem with this multi-network approach is that it has created a web of complexities and consequent management complexity. the number of networks multiplied gradually. IP. Frame Relay. X.25 etc. ISDN. 27 . As network technology continued to develop and client demands grew. PSTN. etc.How? 3. (ATM.
SO ? Next Generation Networks (Magic Wand ?) (Panacea ?) 28 .
it is all about deploying one network platform capable of supporting all traffic types while facilitating service innovation.SO ? Next Generation Networks aim to go back to the simplicity of one single network. 29 . simplifying the network and streamlining the support structure.
SO ? Proactivity Leapfrogging 30 .
SO ? Think Globally Reinvent Locally 31 .
integrated • no fundamental differences among data. voice. any network Module II : Convergence Module III : Next Generation Networks • 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 • now-combined. any device. and video communications • data accessible anywhere. Overlap. merger.Programme • now-combined. Overlap. merger. integrated 32 . anytime.
integrated Module V : Regulation 33 . any network • now-combined. Overlap. any device. merger. merger. Overlap.Programme Module IV : Migration • becoming more than an ISP • now-combined. becoming more than an ISP • data accessible anywhere. integrated • challenges. competition. anytime.
data accessible anywhere. anytime. any network Module VI : Standardisation 34 . Overlap. merger. integrated • becoming more than an ISP.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 • now-combined. any device.
Programme • still being worked out All aspects of NGN • Convergence • Next Generation Networks • Migration • Regulations • Standards 35 .
2009 Next Generation Networks Convergence Module IIa 36 . February 23 – 27. Botswana.Botswana Telecommunications Corporation Gaborone.
Consumer Vision To enrich life. consumers demand • Any service • Anytime • Anywhere • Any device • Any network • Any transport medium 37 .
38 . and maintain.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.
MMS. Creation of new services by using or combining dissimilar technologies (e.g. 39 . Single infrastructure supporting multiple services (fixed/mobile networks carrying voice. VoIP).Next Generation Networks: Convergence Perspectives 1. 2. SMS.). etc. data.
Reinvest resulting savings in the 40 . Reduce maintenance costs 5. Remove redundancies 2. Improve efficiency 3.Next Generation Networks: Convergence To a business model with a single transport infrastructure in order to: 1. Reduce support and management costs 6. Reduce capital costs 4.
which will generate revenue.Next Generation Networks: Convergence development and provision of new services. 8. 41 . Decrease time-to-market with new services. 7. Become more competitive against new and agile entrants with disruptive products.
and media (through digitisation) • Transmission of an increasing number of services and content over a common infrastructure. to create. via open interfaces.Next Generation Networks: Convergence • Network and IT come together. deliver. and support blended services over a common IP network. 42 . entertainmant. • “Convergence is the leveraging of common service enablers.” • The unification of the previously separate worlds of communication.
which allows the access to web-based applications. TV and computer). • Service convergence – stemming from network convergence and innovative handsets. 43 . the diffusion of high-speed broadband access. and the availability of multi-media communication and computing devices. and media.Next Generation Networks: Convergence What is convergence? The path towards convergence was led mainly by the increasing digitalisation of content. formerly operating in separate markets. • Industry/market convergence – brings together in the same field industries such as information technology. and the provision of traditional and new value-added services from a multiplicity of devices. the shift towards IP-based networks. 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. telecommunication.
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). storage. • Device convergence – most devices include today a microprocessor. and computer technologies. • Converged user experience: unique interface between end-users and telecommunications. 44 .Next Generation Networks: Convergence What is convergence? • Legislative. new media. input device and some kind of network connection – increasingly they provide multiple communication functions and applications. a screen.
computing. any transport medium Convergence Network: fixed/mobile Services Applications Network: voice/data Com. anytime. any devise. wireless. optics Customer/user demands: any service. any network. anywhere.Next Generation Networks: Convergence Technological developments: digitalisation. Tech./ Info. Tech. IP. Industrial/ Corporate Device User Experience Regulatory Billing 45 Business Models Markets .
Seoul. CONVERGENCE AND NEXT GENERATION NETWORKS. ISPs. Korea. • As a result. 2008 46 . rather than a revolution. This process has led to: . media content providers.Entry of new players into the market. including the manufacturer of terminal equipment.The necessity for traditional operators to co-operate with companies previously in other fields. etc. Source: OECD. 17-18 June.Increasing competition among players operating in different markets. OECD Ministerial meeting on the future of the Internet economy. but involves a wider range of activities at different levels. . software developers.Next Generation Networks: Convergence What is convergence? • The process towards convergence has been based on an evolution of technologies and business models. . convergence touches not only the telecommunication sector.
voice. video. c) firms d) devices 47 .Next Generation Networks: Convergence • 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.
triple play) 48 . new business models. common technology. new applications. or as services offered in packeges (e.Next Generation Networks: Convergence A tendency for different ICT domains to come together in several combinations through finding increasing synergy.g.
Next Generation Networks: Convergence
A process without a clearly defined end point.
Next Generation Networks: Convergence
• Driver of innovative services to market • Differentiation between traditional and nontraditional competitors • Demands new business models
Next Generation Networks: Convergence
• 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).
Next Generation Networks: Convergence
A key factor in the transformation to a new business model involving the convergence of IT and networks is the comprehensive reexamination of the organizational structure of the enterprise and its business practices in order to make whatever changes are necessary for a smooth transition.
Next Generation Networks: Convergence
Service A Service B Service C
Services A, B, C
IP platform (supporting QoS)
Network A Network B Network C
Next Generation Networks: Convergence
Businees Model Will Change
Next Generation Networks: Convergence Drivers 1) Technological drivers 2) Market drivers 55 .
Next Generation Networks: Convergence Technological Drivers Several Major technologies have impacted the information and communication markets : 1. IP Network 4. Computing 3. Ubiquitous wireless 6. Open network and IT platforms 56 . Digitisation 2. Multi-access innovative devices 7. Broadband everywhere 5.
Next Generation Networks: Convergence Technological Drivers • 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 .
For example. digital broadcasting. Consequence: data compression and resulting increase in the carrying capacity of transmission system.Next Generation Networks: Convergence Technological Drivers • Computing’s ever increasing power and lower prices. thereby freeing up more bandwidth and leading to introduction of other services by incumbents or new entrants. 58 .
Next Generation Networks: Convergence Technological Drivers • 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 .
Next Generation Networks: Convergence New network technologies Expansion of network capacity Development of wide range of services Network Convergence : transmission of different services on same network Service Convergence : conversion of different services into same format 60 .
Next Generation Networks: Convergence Market Drivers • Fueled by the technological drivers • Broadband • Investments in the development of services and applications and infrastructure. • Multiple play 61 .
Corporate convergence: mergers. 1 and 2 are technological while 3 is economic or business. and collaborations among different types of companies. 3. creating new entity which can offer multiple services and addressing different markets. Service convergence or “multiple play”: single network carries several services that required separate networks in the past. allowing a communication service to travel through any combination of networks. 62 . 2.Next Generation Networks: Convergence 1. Network convergence: several networks connecting to each other through a common standard. acquisitions.
Next Generation Networks: Convergence 63 .
Next Generation Networks: Convergence Multiple Play The use of a single communication network. 64 . and Internet. typically a telephone or cable network. video. for the provision of a combination of services such as voice. Multiple play is a subset and a consequence of convergence.
• Multifunction: support of multiple services by a single terminal. 65 . stored. • Multimedia: different content converted to digital form.Next Generation Networks: Convergence Features • Multiservice: multiple services previously supported or requiring new infrastructure are supported by a single infrastructure. transmitted. • Versatility: delivery of the same service or content by different infrastructure or media. processed.
Service providers can enter new sectors. Network integration permits mobility for consumers and expands coverage. cable. Communication companies offer telephony. and increase access to new ICT services.Next Generation Networks: Convergence Different Types of Convergence TYPE OF CONVERGENCE Service Examples Definition Use of networks to provide multiple services. broadcasting. and Internet services using telephone. or collaborate with firms in other sectors Internet. or fixed wireless networks. use their networks more efficiently. Corporate Firms in one sector acquire. and telecommunications firms partner. lower costs and tariffs. merge. or expand their range of services. Network Transport of a services over any combination of networks. Benefits . Mergers create opportunities for new services or markets. Reduced costs can lower tariffs. Internet telephony services like Skype carry voice telephony using the Internet and traditional networks. television. merge. and increase the coverage if 66 individual firms. offer discounts for bundles.
Smaller firms.. and less cultural and linguistic diversity. Policy Implications Risks Source: Singh. Subscribers could be Could lead to lower locked into one provider. investment in networks. might be pushed out of the market. Convergence changes the scope and boundaries of markets and alters entry barriers. Connecting different networks allows locationand network-independent services provision.Next Generation Networks: Convergence Different Types of Convergence TYPE OF CONVERGENCE Service Network Corporate Mergers could lead to less competition. and Raia. especially those without own broadband networks. Mergers create new business models. S. changing the dynamics of the sector. less diversity of media content. Nothing endures but change: Thinking strategically about ICT convergence 67 . market dominance. R. and alter the market structure.
Bottleneck Reduction of diversity Wider range of access devices Increase in reach of services Lower tariffs New economic .Next Generation Networks: Convergence Opportunities and Challenges of Convergence Opportunities Users Access to a great variety of services Operators Provision of wider range of services through same infrastructure Lower costs Higher revenues New customers New markets 68 Vendors Challenges Reduce or/and undermine competition Increased power of incumbents.
Next Generation Networks: Convergence Opportunities and challenges of convergence Opportunities Users opportunities to create services and applications Operators Reduced barriers to market entry New entrants competition lower prices increased service coverage economic growth Vendors Challenges Social development through access to wide variety of services 69 .
S. or directly invests.. Nothing endures but change: Thinking strategically about ICT convergence 70 . cultural. and Raia.Next Generation Networks: Convergence Government Responses to Convergence POLICY RESPONSES Resist Government believes that convergence may undermine social. R. Actions Source: Singh. Issues Government updates are handled on a case-by. and economic objectives. Perceptions Wait and Watch Government believes existing policy accommodates convergence.policy. or decides not to act. Government takes steps to prevent new services and providers from entering market. No policy changes. Enables Government believes that convergence can benefit the ICT sector and economy at large. political. industry responses. promotes case basis.
and reduced prices. but expose policy inconsistencies. and Raia. • Government faces increasing pressure to remove restrictions. Outcomes Source: Singh. Wait and Watch • Case-by-case decisions allow progress. Enables • The market evolves with new services and business models. • Government faces increasing pressure to revise policy. • Growth and innovation accelerate. R. S. but may still defeat restrictions. • Users lose potential benefits from innovation and cost reductions. • Growing uncertainty discourages investors and operators.Government Responses to Convergence POLICY RESPONSES Resist • New services cannot develop legally. • Users benefit from increased access and choice.. Nothing endures but change: Thinking strategically about ICT convergence 71 .
Next Generation Networks: Convergence 72 .
Next Generation Networks: Convergence 73 .
February 23 – 27.Botswana Telecommunications Corporation Gaborone. Botswana. 2009 Next Generation Networks Fixed-Mobile Convergence Module IIb 74 .
not technology Source: A. 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. Scrase.Next Generation Networks: Fixed-Mobile Convergence (FMC) Once upon a time. Fixed-mobile convergence.. • Fixed networks dominated.. 2005 75 .
Fixed-mobile convergence. Scrase.Next Generation Networks: 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 … Source: A. 2005 76 .
Next Generation Networks: Fixed-Mobile Convergence (FMC) • Cellular handsets are used for nontelecommunication services • Are personal communication devices • Are frequently used in fixed locations • Compete with fixed wireless access (FWA) 77 .
• Most countries (developed and developing) are seeing mobile use increasing even though penetration is already high. 2005 78 . • Internet penetra on is not that high but shows a rapidly growing trend. even though penetration rates are not that high. Scrase. Source: A. • Broadband deployment is in its infancy.Next Generation Networks: Fixed-Mobile Convergence (FMC) Technology Evolution • Many countries (developed and developing) are seeing fixed line use reducing. Fixed-mobile convergence.
ppt 79 . Fixed Mobile Broadband Source: FMC_London_NGN.Next Generation Networks: Fixed-Mobile Convergence (FMC) 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.
therefore.Next Generation Networks: Fixed-Mobile Convergence (FMC) 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 … . 2005 80 .. Industry must find a cheaper way to deliver telecommunication services • Mass markets / economies of scale can help achieve this goal. Scrase. Fixed-mobile convergence. Source: A.
Next Generation Networks: Fixed-Mobile Convergence (FMC) If we stay with the present course… • Fixed network revenues will decline year on year. 2005 81 . Fixed-mobile convergence. Scrase. 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 Source: A.
Next Generation Networks: Fixed-Mobile Convergence (FMC) 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. Fixed-mobile convergence. 2005 • • • • • • 82 . Scrase.
laptops 83 . multimedia. Anywhere. messaging.Next Generation Networks: Fixed-Mobile Convergence (FMC) Any Service. corporate applications • Converged Devices: Phones. PDAs. Anytime • Converged Services: Voice. smartphones. VPN. presence.
Next Generation Networks: Fixed-Mobile Convergence (FMC) 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 .
Next Generation Networks: Fixed-Mobile Convergence (FMC) 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-themove’ (price premium) – The customer also expects the network speed & quality to be ‘everywhere’ & on the same level. 85 .
Next Generation Networks: Fixed-Mobile Convergence (FMC) • 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 .
news with continuity across TV. mobile phone.Next Generation Networks: Fixed-Mobile Convergence (FMC) For consumers • connected life with continuity across devices (e. watching movies.g. sports. PC) 87 .
continuity of access and experience across multiple networks.Next Generation Networks: Fixed-Mobile Convergence (FMC) 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. 88 .
Next Generation Networks: Fixed-Mobile Convergence (FMC) Mobility is about • A continuously connected life as one moves • Choice and simplicity while continuously connected 89 .
Next Generation Networks: Fixed-Mobile Convergence (FMC) 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 .
content. 91 . data. video on cable networks. video. data on data networks. • Today’s networks carry converged services – voice. and applications • Users must switch between multiple networks and devices.Next Generation Networks: Fixed-Mobile Convergence (FMC) • No convergence. optimization of individual applications for particular networks and devices: voice on voice networks.
ppt 92 .Next Generation Networks: Fixed-Mobile Convergence (FMC) 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) Source: FMC_London_NGN.
93 . or services using the device of their choice.Next Generation Networks: Fixed-Mobile Convergence (FMC) FMC is an emerging capability that provides consumers continuity to access and use of content. applications.
Next Generation Networks: Fixed-Mobile Convergence (FMC) • Mobile and fixed networks ‘get together’ • This development is coming mainly from the fixed side as those networks get more and more ‘mobile’ 94 .
SMS and MMS-services on fixed networks) 95 . fix numbers on mobile networks.Next Generation Networks: Fixed-Mobile Convergence (FMC) • 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.
96 . applications. and management so that users can avoid manually toggling between wireless and wireline divide.Next Generation Networks: Fixed-Mobile Convergence (FMC) – FMC is the coming together of all networks. devices. – FMC reduces the number of user devices and simplifies access to networks. content. It provides easier access and simpler interface. providing access continuity across networks. services.
Next Generation Networks: Fixed-Mobile Convergence (FMC) What is FMC ? • One phone number across wireline. WiFi and wireless access • Support for today’s Voice. SMS. when in wide area service provided by Cellular 97 . Voicemail services – and tomorrow’s multimedia services •When indoors service provided over WiFi.
call wait – Multi-line calls – Personal/Enterprise/Family feature control 98 .Next Generation Networks: Fixed-Mobile Convergence (FMC) What is FMC ? •Seamless mobility across domains – Handoff and roaming • Advanced calling features – Call forward.
Patel. Introduction to Fixed/Mobile Convergence (FMC). 2006 99 .Next Generation Networks: Fixed-Mobile Convergence (FMC) What is FMC ? •Advanced multi-media features – Video calling/conferencing – Multi-party gaming – Blending IM/voice/video/web Source: A.
Next Generation Networks: Fixed-Mobile Convergence (FMC) 100 .
and double play. and mobile cellular services to 101 . data. video (bandwidth intensive needing fixed line) • Quad play: bundled subscription to voice.Next Generation Networks: Fixed-Mobile Convergence (FMC) To combat the challenges facing them. data. SPs must expand their offerings to customers by including multiple play such as triple play. quad play plus. quad play. video. • Triple play: bundled subscription to voice.
mobile phone. etc. WiFi.Next Generation Networks: Fixed-Mobile Convergence (FMC) satisfy customer needs for mobility.) + FMC data connect with roaming across fixed. • Quad play plus: FMC voice with one-number ring and call continuity across devices + FMC video with programme continuity across screens (TV. PC. and cellular networks 102 .
video. video. mobile cellular services FMC Voice: one number ring and call continuity across devices FMC Video: programme continuity across screens FMC Data Connect: Fixed Mobile Substitution (FMS): replaces fixed voice with unlicensed wireless and fixed broadband Mobile Broadband Substitution (MBS): replaces fixed broadband with 3G networks Dual Play 103 . broadband data connect.Next Generation Networks: Fixed-Mobile Convergence (FMC) Types of Multiplay OFFERING Triple play Quad Play Quad Play Plus SERVICES INCLUDED Voice. broadband data connect Voice.
and new services. 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. quality improvement.Next Generation Networks: Fixed-Mobile Convergence (FMC) FMC benefits 1. 104 . Offer multiple play services 2. 3. Cost reduction.
FMC benefits to service providers and end users NGN:Fixed-Mobile Convergence (FMC) 105 .
NGN:Fixed-Mobile Convergence (FMC) Impact of FMC on revenue opportunities 106 .
Need for FMC will force heterogeneous network operators to partner or expand their capabilities. All service providers will tend to support heterogeneous fixed. data.Next Generation Networks: Fixed-Mobile Convergence (FMC) FMC strategic trends 1. video. Fixed and cable operators will add mobile services in order to compete with integrated service providers. applications. 107 . unlicensed wireless (UW). and mobile networks for voice. content. and niche apps like video.
108 .Next Generation Networks: Fixed-Mobile Convergence (FMC) FMC strategic trends 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.
109 .Next Generation Networks: Fixed-Mobile Convergence (FMC) FMC strategic trends 3. Video is key in triple and quad play since many consumers consider video as must have service at home.
NGN:Fixed-Mobile Convergence (FMC) Service providers strategies against competition 110 .
or both technologies. 111 . using either fixed or mobile. legacy investments must be protected….Next Generation Networks: Fixed-Mobile Convergence (FMC) Impact on Developed Countries • Clearly identified need to move towards Next Generation Networks • But. • Large installed PSTN customer base will need to be progressively migrated to broadband access.
Fixed-mobile convergence. 2005 112 .Next Generation Networks: Fixed-Mobile Convergence (FMC) Impact on Developed Countries • Mature mobile population will evolve to high speed technology for broadband access to NGN platforms Source: A. Scrase.
Next Generation Networks: Fixed-Mobile Convergence (FMC) 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 Source: A. 2005 113 . Scrase. Fixed-mobile convergence.
Next Generation Networks: Fixed-Mobile Convergence (FMC) 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 .
2009 Next Generation Networks Next Generation Networks Overview Module III 115 .Botswana Telecommunications Corporation Gaborone. Botswana. February 23 – 27.
NEXT GENERATION NETWORKS
• • • • • Background Definition of NGN Characteristics of NGNs Architechure of NGN Enabling technologies: IP, Wireless, Optics, Ethernet
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
NEXT GENERATION NETWORKS: Past and Present
• • • • Lack of continuity of service No seamless connection between networks Little mobility Too many devices
Next Generation Networks: 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
Next Generation Networks: Past and Present
Traditional architechure and business model
Next Generation Networks: Past and Current Network Architechures
. Internet). A situation in which different services were provided by separate networks (mobile. control. transport. cable TV. Result: multiplicity of same functionality for a single operator with several specialised networks. Single purpose network. One network one service separate access device. fixed. management.Next Generation Networks: Past and Current Network Architechures Silo: Each service or application has its own billing.
NEXT GENERATION 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 .
124 . anytime. any network • Perhaps. • Any service. anywhere.NEXT GENERATION NETWORKS Wish List in other words. on one device or a minimum number of devices.
Next Generation Networks: Customer Needs Source: FMC_London_NGN.ppt 125 .
ppt 126 .Next Generation Networks: Operator Needs Source: FMC_London_NGN.
thereby increasing the potential for greater profits. 127 . advanced services to retain customers and attract new ones • Addition of network-based services to their customer premises equipment-based services.Next Generation Networks Value to Service Providers • Addition of new.
proprietary solutions. reduce time to market and life-cycle costs of new 128 . etc. ease of providing customer services such as billing.Next Generation Networks Value to Service Providers • More efficiency and scalability. support of user and service mobility. provisioning. eliminate the costs and inefficiencies of service-specific. • Build on core competences of traditional transport services to cost effectively support new services.
Next Generation Networks Value to Service Providers services. In sum. 129 . public carriers need NGNs to add value to their current services. thus remaining competitive. deployment of new services.
Internet) • Must break through old operating boundaries. media • Develop common offerings between networks . initially pairing domains: telecomms. broadcasting.Next Generation Networks Transition Vertically integrated networks: telephony (fixed and mobile. IT. internet.
sometimes in an interactive way. Multipurpose network. .Next Generation Networks Transition Horizontal: A situation in which communication services are accessed seamlessly across different networks and multiple platforms. One network many services.
C IP platform (supporting QoS) Network A Network B Network C Backbone Networks .Transition Service A Next Generation Networks Current Service B Service C Future Services A. B.
NEXT GENERATION NETWORKS Transition Businees Model Will Change 133 .
• Support for old. • Support for multiservices that include real-time and data services. including those that open the markets to new entrants. and evolving business models. new. .Next Generation Networks Transition: Long term objectives • convergence of telecommunication and information services infrastructures. either individually or in combinations that could include multimedia services. • Convergence of telecommunications and IT services and applications.
Next Generation Networks: Vendor Needs Source: FMC_London_NGN.ppt 135 .
ppt 136 .Next Generation Networks: Converged User Experience Today Tomorrow BILLS Source: FMC_London_NGN.
NEXT GENERATION NETWORKS Today Today’s network architechure presents an internetworking problem 137 .
NEXT GENERATION NETWORKS 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 .
The creation of the proper support for convergence has been encapsulated in the concept of next generation networks. The third stage is concerned with creation of the appropriate support for convergence. There is no convergence in the first phase. . • Second. designed. an opportunity for a new service is recognised but the existing infrastructure is unable to support the service. the proper support infrastructure for the new service is specified. there is some degree of convergence.Next Generation Networks Phases of facility development • First. • Finally. In the second phase. and implemented. existing facilities are adapted to accommodate the new service.
etc. . increasing demand for new multimedia services – increasing demand for general mobility. characterised by factors such as: competition among operators due to ongoing deregulation of markets. convergence of networks and services.Next Generation Networks The concept of a next generation network has been introduced to take into consideration the new realities in the telecommunications industry. explosion of digital traffic – increasing use of the Internet.
Next Generation Networks A major goal of the NGN is to facilitate convergence of networks and convergence of services. .
So what next? Next Generation Networks .
technologies – It enables unfettered access for users to networks and to competing service providers and/or services of their choice. . Y.Next Generation Networks ITU definition: ITU-T SG 13 Rec. – It supports generalized mobility which will allow consistent and ubiquitous provision of services to users.2001 – A NGN is a packet-based network able to provide packettelecommunication services and able to make use of multiple broadband. QoSbroadband QoS-enabled transport technologies and in which serviceservice-related functions are independent from underlying transporttransport-related technologies.
.Next Generation Networks 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.
Next Generation Networks Architechure Source: Presentation for 22-12-2006.NGN meeting final.pdf 145 .
The key technical characteristics of NGNs are that they provide: .Next Generation Networks NGNs can also be defined in terms of their technical characteristics. . routing and network intelligence enabling remote access. .A single IP-based core network handling the full range of telecommunication services.Distributed rather than centralized switching. .A single access platform supporting the full range of access technologies and services. control and maintenance.
and provision of open interfaces – Support for a wide range of services. call/session.Next Generation Networks… NGN characteristics – Packet-based transfer – Separation of control functions among bearer capabilities. 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 . and application/service – Decoupling of service provision from network.
security.Next Generation Networks… 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. lawful interception. privacy. etc. .
• A Next Generation Network is essentially an IP-based network that enables any category of customers (residential. WiMax etc. .).) over the same network.) and wireline (copper DSL. corporate or wholesale) to receive a wide range of services (voice. cable.Next Generation Networks 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. fibre. Conversion from analogue to digital technology by itself in the circuit switched network environment did not signify a generational change in the network technology. power lines etc. WiFi. video. both wireless (3G. IP access is enabled across a wide range of broadband technologies. data etc.
video.” Source: Cochinwala_Munir.Next Generation Networks Services Video Single Integrated Pipe HFC (Cable) Network using DOCSIS transport ATM or IP Over xDSL Lines Fixed Wireless High-Speed Data Voice/Fax “A network where all kinds of information (voice.ppt 150 . data) are transported uniformly using packet-based transport and switching media. fax.
Next Generation Networks The NGN Service and Application Model VOICE AUDIO HIGH SPEED DATA LOW SPEED DATA VIDEO TELEVISION OTHER NEXT GENERATION NETWORK PROVIDER SINGLE INTEGRATED INFRASTRUCTURE Source: Cochinwala_Munir.ppt 151 .
NEXT GENERATION NETWORKS: Future Convergence on an NGN Core Network 152 .
Next Generation Networks: Future Network Architechures 153 .
. design. An evolving concept. a development towards one or more future facilities dealing with and characterised by convergence. and implementation of a proper support for convergent services.Next Generation Networks The specification.
NGNs must share these efficiencies – for both bearer and signaling traffic.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. .
) as memory and processor price/performance improve. • “Old World” to “New World” interoperability: existing PSTN infrastructure. .Key characteristics of NGNs are: • Internet technology economics: leverage services and service delivery through the Internet. etc. and its associated investment must be fully utilized. as well as the “silicon economics” of Internet hardware (servers.
. an operator could use the same transport (IP) network for its fixed voice. For example. mobile telephony. 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. and corporate business services.Next Generation Networks Consequence of NGN • In NGN. broadband.
Next Generation Networks A buzzword used to sell new carrier networks 158 .
pdf 159 .Next Generation Networks Drivers • Reducing complexity of infrastructure by establishing a single IP platform that is multiservice 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.
e. local loop deregulation • Globalisation 160 . privatisation • Market deregulation.g.Next Generation Networks Drivers Structural changes in telecommunication markets due to • Decrease in subscribers and revenue from the PSTN • Increased competition.
WLAN.Next Generation Networks Drivers Changes in services and user needs • Rapid diffusion of broadband Internet • VoIP • Cellular. Wi-Fi • Digital TV 161 . 3G.
scalable solutions under the IP environment • IPv6 • Digitalisation • CPU power and memory capacity. mass storage • Optics 162 . interoperable.Next Generation Networks Drivers Technological evolution • Creating innovative.
Multi-access innovative devices 5.Broadband everywhere 3.Open network and IT platforms 163 .Ubiquitous wireless 4.Next Generation Networks Technological Drivers Five Major technologies have impacted the information and communication markets : 1.IP Network 2.
Next Generation Networks Drivers • • • • Costs (capital and operational) Price/performance Standards Speed of innovation and introduction of services .
) are provided by thirdparty service providers. . broadband and data. video. This could change the business model of the existing operators to the extent that. it could prove to be highly disruptive. etc. such that all application services (voice.Next Generation Networks Implications • A possible consequence of new service-only operators directly serving customers is that traditional network operators could become pure access providers. if not managed carefully.
the migration to NGN offers both a huge opportunity to operators. with traditional non-IP interconnection becoming increasingly more expensive and less relevant.Next Generation Networks Implications • Another implication of NGN migration will be that the interconnection regime also would need to change. as well as posing some serious risks. In this scenario. . Service providers would need to upgrade to NGN in step with the industry or they may face the risk of lagging behind. 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. Therefore.
across the world.Next Generation Networks Advantages • NGNs essentially deliver convergence between the traditional world of PSTN and the new world of data networks. they provide a means of migrating from the old world to the new world. existing network operators are facing fierce competition in the market and they have to remain competitive to survive. • Firstly. From an operator’s perspective. 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 . delivering substantial cost savings because of the economies of scope and efficiencies inherent in a single converged network based on IP.
Next Generation Networks Advantages streams on the other hand. the increasing service requirements from end-users call for innovative applications and multimedia services. • Secondly. flexibility of access to service. 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. high quality of service etc. . high-access bandwidth.
with ongoing maintenance support being harder and more costly to obtain. can reduce operational costs. e. – Innovative services can be developed to improve the customer experience.g. .Next Generation Advantages Telco’s Advantages • There are a number of reasons for legacy telecom companies to move over to NGN. rather than multiple legacy networks. – Running a single converged network with common IP platform (NGN). including: – Existing PSTN equipment may be reaching the end of its economical life.
. – 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).Next Generation Advantages Telco’s Advantages – New services can be brought to market faster and at lower cost by using NGN.
Single access for multiple services: This will be enabled by the separation of the service layer from the network layer. . with essentially no change.Next Generation Advantages 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. .Ease of migration: Consumers will be able to migrate seamlessly to new services offered by the same operator.
g. since they exploit the distributed intelligence inherent in an NGN.Innovative new services: New services will have richer functionality (e. location-aware). . and reduced time-to-market. .Next Generation Advantages Consumers’ Advantages . personalized.Empowerment: Consumers will have an increased capability to configure and manage services to meet their personal requirements.
no QoS Specified at global level Open interfaces support rapid innovation Smart terminal. dumb network 173 .999) and high quality of service (QoS) Specified at national level extended to global level Main area for national regulation Dumb terminal.NEXT GENERATION NETWORKS Today Telco versus Internet Telco Network Circuit switching 64 kbps Well defined fixed and mobile architechure Designed for high reliability (five nines 99. smart network Current Internet Packet switching over diverse transmission media Defined by protocols rather than by architechure Best effort network.
provides a single platform on which the carriage of previously distinct service types (video. voice. 174 . together with new and emerging services and applications.Next Generation Networks • NGN provides the technical underpinning for convergence. data) “converges”.
service and application functions) enables competition and innovation at each horizontal level in the NGN structure. the separation of distinct network layers (transport.Next Generation Networks • Even though services converge at the level of digital transmission. control. 175 .
thereby leveraging their market power across these layers and possibly reducing competition and innovation.Next Generation Networks • NGNs can also create strong commercial incentives for operators to bundle services. 176 . • This will need proper regulatory oversight to prevent potential stifling of competition and innovation and reduction of benefits to customers and economic development.
Next Generation Networks • 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 .
Next Generation Networks Repeated for emphasis .
a development towards one or more future facilities dealing with and characterised by convergence. . and implementation of a proper support for convergent services.Next Generation Networks The specification. An evolving concept. design.
• Support for multiservices that include real-time and data services. and evolving business models. including those that open the markets to new entrants.Next Generation Networks Long term objectives • convergence of telecommunication and information services infrastructures. new. . either individually or in combinations that could include multimedia services. • Support for old. • Convergence of telecommunications and IT services and applications.
Next Generation Networks • Far vision or near future? .
Next Generation Networks… • Different visions – Common goals – A broad concept • encompasses the whole development of new network technologies. current and future access networks • Standardization Process • Regulatory environenment . new access infrastructures. with one common IP core network deployed for all the legacy. new services… – Focused concept • Specific network architecture and related equipments.
where steering.g. management and service provision functions are independent from transport and access – Network layers should communicate through open interfaces enabling use of different equipment from diverse hardware producers • Multi-layer orientation • Open character 7 March 2006 Jaroslaw. data transmission networks. e. video services – NGN should enable provision of communication services regardless of place – Network should enable provision of diverse services that nowadays are provided thanks to different networks. fixed and mobile telecommunication networks – Network should integrate all existing communication networks – Networks should be multilayer.int 183 . voice services.Ponder@itu.NGN: What is different? • Multimedia • Generalized mobility • Convergence • Integration – NGN should enable provision of wide range of services including: data transmission.
February 23 – 27. Botswana.Botswana Telecommunications Corporation Gaborone. 2009 Next Generation Networks Migration Module IV 184 .
often built as an overlay on top of a fixed network. . • Cable network for television broadcasting. • Fixed network based on twisted copper pair for voice communication. and • Internet networks to provide services such as FTP. email.Next Generation Networks: Migration Current situation Several types of communication networks running in parallel. web browsing. • Mobile network originally designed for voice communication enhanced by mobility. etc. each designed for a specific service and offering optimum performance for its particular service.
Next Generation Networks: Migration Current situation With technological developments and competition. even if the changes are different from network to network and from service provider to service provider. the current situation is breaking up and is changing. • Each type of provider is working hard at enhancing its capacity and features in order to provide the services of the other providers. all the changes follow an identifiable trend: • Besides its native service. cable adding Internet. each type of legacy network is working hard to provide Internet services. ISP involved in telephony. including eventually advanced services like VoIP and IPTV. telecoms doing broadcasting. etc. wireless access and mobility. • The enhancements include greater bandwidth.. .
which will harmonise the current fragmented situation of networks and services.Next Generation Networks: Migration Current situation These changes are pointing towards network evolution (migration) towards NGN. • Use all existing transport networks to carry services. • Access to services and applications independent of the type of network. • Use of all existing access networks to provide seamless and pervasive resource availability. . and lead to better use of existing infrastructure and provide access to new access and core networking technologies.
What does the step accomplish? 2. What is the place of the step in the ultimate goal of NGN? . Each step must address the following questions: 1.Next Generation Networks: Migration 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.
. in addition to lower network procurement. fixed mobile converged [FMC] services etc. operations and maintenance costs. resulting in better reliability.Next Generation Networks: Migration Reasons • Migration to NGN reduces network and operational complexity. messaging.. • 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. etc. education. greater service bundling. better customer provisioning.
as well as possible access to new services. thus boosting revenues and profitability. On the one hand. traditional operators would see much greater efficiencies and lower costs. i. and on the other. service independence could create new category of operators. .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. e.Next Generation Networks: Migration Reasons • Migration to NGN could change the operator’s business models completely.e. niche service providers who are able to compete effectively with traditional network operators for minimal investment.
the migration to NGN offers both a huge opportunity to operators. Service providers would need to upgrade to NGN or face the risk of lagging behind. Therefore.Next Generation Networks: Migration Reasons With NGN migration the interconnection regime also would need to change. 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. with traditional non-IP interconnection becoming increasingly more expensive and less relevant. .
both at the access and core level. is being driven by various factors.e. voice.Next Generation Networks: Migration Drivers For wireline providers.. local governments and power companies – and their ability to 192 . the transition to NGN. video. and data services) – as well as pressure from other new market players such as alternative providers. • Competitive pressure from traditional cable television providers offering “triple play” (i.
• Expected cost savings associated with the economies of scope deriving from the integration of existing networks is a key driver for core NGN migration. investing in NGNs is expected to reduce the on-going operational cost of the copper local access networks since they allow for 193 . • From the access network perspective.Next Generation Networks: Migration Drivers offer television over Internet Protocol (IPTV) are pushing wireline providers towards NGN.
and thereby directly linking customer premises with the data switching capabilities higher up in the network architecture. particularly for the deployment of FTTx access infrastructures 194 . particularly in developed markets.Next Generation Networks: Migration Drivers eliminating local exchanges. has been a main driver for operators to upgrade existing networks and. • The consumers demand for an ever increasing “need for speed”.
Next Generation Networks: Migration Drivers • • • • • • Investment protection Operational and capital costs savings Carrier grade reliability Improved service creation capabilities Scalability Improved product selection/choices .
but • To capture higher value applications in a way that rebuilds profit for providers (incl.Next Generation Networks: Migration Drivers The telecommunication market needs a successful IP business model • Not to replace the Internet. carrier) 196 . but to supplement it • Not just to sell transport capacity.
Next Generation Networks: Migration 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 .
Next Generation Networks: Migration Steps for Migration One approach Progressive migration Versus Revolutionary 198 .
thereby sustaining long term profitability from current legacy and TDM services. Revenue generation from new triple play services. 3.Next Generation Networks: Migration Steps for Migration: One Approach • Progressive evolution (migration): adding of facility only as need arises 1. 2. Preserve revenue from legacy TDM services. Incremental CAPEX and OPEX with evolution. 199 .
Increase profitability 6. Fast time-to-market with any demanded services. 7.Next Generation Networks: Migration Steps for Migration 4. 5. Risk minimization through gradual rather revolutionary migration. Reduce overall OPEX through the use of a single converged network for old and new services. 200 .
Question: Given the current state of operator networks in your country. 2. 3. Potentially huge investment costs. Potential loss of customers and revenue. Potentially sharp CAPEX and OPEX. which approach is most appropriate? 201 . 1.Next Generation Networks: Migration Steps for Migration • Revolutionary evolution: tear up the legacy network completely and replace it with an NGN.
Network integration and service extension. IP-based service conversion and managed IP network development. 2. .Next Generation Networks: Migration Steps for Migration Example of Progressive Migration 1. Service convergence and access network development. 3.
Service convergence and access network development Service convergence means an existing network can provide customers with same service from different networks. . For example. Access technologies and delivered QoS may be different . on a mobile phone. TV service on a PC via PSTN. or on a TV set via cable.Next Generation Networks: Migration Steps for Migration Example of Progressive Migration 1.
Access network development would require • • • Increased access bandwidth. jitter.Next Generation Networks: Migration Steps for Migration Example of Progressive Migration 1. Support for portability and mobility . Reduced delay. delay. Service convergence will demand enhancements in the capabilities of access networks. Service convergence and access network development Each service has its QoS requirements such as bandwidth. data error rate.
VoIP for telephony.e. IP-based service conversion will replace legacy network services with IP-based ones. IP-based service conversion and managed IP network development.g.Next Generation Networks: Migration Steps for Migration Example of Progressive Migration 2. 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..
. During conversion. With decoupling. IP-based service conversion and managed IP network development.Next Generation Networks: Migration Steps for Migration Example of Progressive Migration 2. the legacy network can now carry any service with different QoS and security demands. the previous legacy QoS and security are no longer applicable. Decoupling affects QoS and security which are built into the legacy network. new and enhanced features could be added to the service.
Next Generation Networks: Migration Steps for Migration Example of Progressive Migration 2. . The decoupled network must be transformed to provide different levels of these features according to service demands. IP-based service conversion and managed IP network development. a laptop can access a TV programme via fixed. Example: Using an appropriate adapter. mobile. or cable network.
Next Generation Networks: Migration Steps for Migration
Example of Progressive Migration 2. IP-based service conversion and managed IP network development. Managed IP network development will transform the best-effort IP network to one that delivers required QoS, security, and other features.
Next Generation Networks: Migration Steps for Migration
Example of Progressive 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.
Next Generation Networks: Migration 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.
Next Generation Networks: Migration 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
Next Generation Networks: Migration 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.
Next Generation Networks: Migration Steps for Migration
Next Generation Networks: Migration Steps for Migration .
Next Generation Networks: Migration Steps for Migration .
Next Generation Networks: Migration Steps for Migration .
Next Generation Networks: Migration Steps for Migration .
Next Generation Networks: Migration NGN Transition – fixed telephony 218 .
Non-guaranteed end-to-end QoS. 4. Slow introduction of IPv6. 2. .Next Generation Networks: Migration Steps for Migration Some critical problems of IP networks: 1. 3. Longer call setup times. Insufficient IP addresses with IPv4. solved with IPv6.
could be in the process of finalizing their plans for deployment of NGN.Next Generation Networks: Migration Steps for Migration • Compared to many developed telecom markets.). Various telecom service providers. Sub-Saharan countries have less network legacy products (limited deployment of ATM. including incumbents. starting with the core network and then for access network and service provision. ISDN etc. . This may be implemented in a phased manner.
ISDN.. thus leapfrogging technologies and going to core NGNs straightaway. and SHDS). 221 .Next Generation Networks: Migration in developing countries • Compared to more developed telecommunication markets. FR. This makes it easier for them to migrate to all IP-based systems.g. IP. ATM. service providers in developing countries generally have less baggage of legacy products in their core networks (e.
Thus. limited deployment and penetration of copper networks in particular. they also will be able to leapfrog access technologies. and the reduction of the costs of fibre. where economically viable. 222 . can also facilitate “greenfield” deployment of FTTx projects.Next Generation Networks: Migration in developing countries • In the case of access networks. and go directly to NGN access infrastructure.
223 .Next Generation Networks: Migration in developing countries 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.
migration to the NGN world can be characterized by the following elements: • Traditional market boundaries have become increasingly blurred in the presence of IPenabled services and fixed-mobile convergence. • Regulatory frameworks which generally were designed for a traditional circuit switched 224 .Next Generation Networks: Migration Other Considerations For regulators.
• Access providers and network operators must make intensive investments in upgrading and building new infrastructures and are looking for regulatory certainty.environment may not be equipped to address an IP-based environment where multiple services can be offered over a single platform. • New potentials for bottleneck structures and market dominance in the telecommunications industry can emerge 225 Next Generation Networks: Migration Other Considerations .
Next Generation Networks: Migration 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. 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. or maintain ex ante regulation. 226 .
but applying regulatory measures to remedy a market failure or anti-competitive situation.Next Generation Networks: Migration Role of the Regulator Ex post regulation. which relies primarily on competition law. 227 . by contrast calls for establishing few or no specific rules in advance.
Regulatory clarity on these issues can help reduce the investment risk for operators. . emergency access. 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. QoS. security aspects.. which may need detailed ex-ante regulation. etc. • The main regulatory issues involved are related to interconnection.Next Generation Networks: Migration 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. transition.
Next Generation Networks: Migration 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 .
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? .Next Generation Networks: Migration Questions What is the likely time frame for a country to achieve complete migration to NGN core.
February 23 – 27. Botswana.Botswana Telecommunications Corporation Gaborone. 2009 Next Generation Networks Regulation Module V 231 .
2 Responses V.Regulation V.4 Checklist .1 Regulatory Issues and Challenges V.3 Role of Regulator V.
Next Generation Networks: Regulation V.1 Regulatory Issues and Challenges .
the regulatory policy was aimed at a natural monopoly 234 . affordability. and quality of service (the five nines).Next Generation Networks: Regulation Regulatory Issues or Challenges • Historically (traditionally). In general. the central objective of regulating the telecommunication industry was to ensure the highest performance possible of POTS in terms of accessibility.
Next Generation Networks: Regulation 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 .
current regulatory schemes are under increasing pressure to adapt. and markets.Next Generation Networks: Regulation Regulatory Issues and Challenges • With the development of new technologies and the trend towards convergence of technologies. 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 . services.
Next Generation Networks: Regulation Regulatory Issues and Challenges 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 .
Next Generation Networks: Regulation Regulatory Issues and Challenges • How can the regulator ensure that efficient incentives for investment in next generation access infrastructure are not distorted. regulatory uncertainty or anti-competitive behaviour? 238 . either by existing regulation.
which will require access to NGN services and systems. and interconnection. . – NGN still requires high R&D expenditures that nowadays are mostly covered by hardware vendors. Therefore.Next Generation Networks: Regulation Regulatory Issues or Challenges • NGN requires creation of incentives to invest (for both new entrants and incumbents) because – NGN is still seen as risky investment. and removing barriers to the development of emerging markets. – Broadband policies facilitate migration to the Internet. – Regulations should encourage innovation and longterm investment. – Regulatory uncertainty negatively impacts NGN expansion. – Nowadays most investment will be done by incumbents.
Next Generation Networks: Regulation Regulatory Issues and 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 .
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. but….Next Generation Networks: Regulation Regulatory Issues or Challenges • NGN strengthens competition. new definition of relevant markets – Balance between ex-ante regulations and ex post remedies – Effectiveness of self correcting forces in a competitive marketplace .
• Or. permitting higher profits for operators’ investments through regulatory forbearance may reduce competition.Next Generation Networks: Regulation Regulatory Issues and Challenges These questions lead to a dilemma: • Promotion of competition may reduce or distort operators’ incentives to invest in NGAN infrastructure. 242 .
sustainable competition is unlikely to emerge in the medium term as a result of difficulties for competitors to replicate access infrastructure. Economic bottleneck means “those parts of a network where not only does one or more operator have significant market power (SMP). but where effective. “Regulatory challenges posed by next generation access networks” 243 .Next Generation Networks: Regulation Regulatory Issues and Challenges • Key question concerns the effects of enduring economic bottlenecks on competitive environment.” Source: OFCOM (2006).
Should regulation mandate access to next generation access networks (NGAN) which are enduring economic bottlenecks so as to promote competition? If so.Next Generation Networks: Regulation Regulatory Issues and Challenges To ensure competition and efficient investments incentives. what are the terms? 2. regulation should address two issues 1. Source: OFCOM (2006). How are existing regulations affected by NGAN deployments? Ex ante versus ex poste regulation. “Regulatory challenges posed by next generation access networks” 244 .
“Regulatory challenges posed by next generation access networks” 245 .Next Generation Networks: Regulation Regulatory Issues and Challenges As questions of public policy. two issues arise: 1. How can NGAN lead to an emerging digital divide and how should regulations address it? Source: OFCOM (2006). What are the social benefits that can arise from NGAN deployments? 2.
Next Generation Networks: Regulation Regulatory Issues and Challenges • 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 .
Next Generation Networks: Regulation Regulatory Issues and Challenges 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 .
Next Generation Networks: Regulation Regulatory Issues and Challenges Principle • Neutrality Rapid technological changes underscore the need for policy and regulation to be based on principles that support consumer interests. • Shift of competition from physical to application/service layer. such as competition policy. independent of specific technical aspects of networks. 248 .
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 .Next Generation Networks: Regulation Regulatory Issues and Challenges Principles • Technology and provider neutrality – to promote investment and innovation • Market driven.
Next Generation Networks: Regulation Regulatory Issues and Challenges 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 .
Next Generation Networks: Regulation Regulatory Issues and Challenges 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 .
Next Generation Networks: Regulation Regulatory Issues and Challenges Objectives of regulations 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 .
IPTV. VOIP) 253 .Next Generation Networks: Regulation Regulatory Issues and Challenges Objectives of regulations • 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.
Next Generation Networks: Regulation Regulatory Issues and Challenges At the NGN core. • Interconnection can be viewed as the ability of one network operator to enable its customers to link to the customers of another network operator. but they are not at all the same. The two are interrelated. key regulatory challenges revolve around interconnection rather than access. Source: Marcus and Elixmann. Regulatory approaches to Next Generation Networks (NGNs): An International Comparison 254 . For purposes of this discussion.
In other words. with access one operator effectively leases capacity from another. Source: Marcus and Elixmann.Next Generation Networks: Regulation Regulatory Issues and Challenges • 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. Regulatory approaches to Next Generation Networks (NGNs): An International Comparison 255 .
Next Generation Networks: Regulation Regulatory Issues or Challenges Interconnection • Regulations for traditional PSTN network and voice service where charging was based on time and distance. – 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 – – – – Any-to-any or end-to-end connection New charging rules under NGN Defining level of interconnection: access or service “equivalence of inputs” • Regulation needed for . • With NGN’s separation of service/application and transport.
Next Generation Networks: Regulation Regulatory Issues or Challenges • 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 .
Next Generation Networks: Regulation Regulatory Issues or Challenges • 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 .
• Must evolve with technologies and markets. thus. . impede competition Impede the deployment of new services Hinder technological development and creation of new services Bar the introduction of alternative services. otherwise – – – – Act as a barrier to market entry and.Next Generation Networks: Regulation Regulatory Issues or Challenges 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.
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.Next Generation Networks: Regulation Regulatory Issues or Challenges Numbering • Initially developed for traditional voice telephony. With the coming of convergence. need for policies for – Fixed to mobile convergence – Number portability: ability to maintain same number when changing service providers . IP-based NGN. – 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.
int .Next Generation Networks: Regulation Regulatory Issues or Challenges • 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.
as well as a revision of the charging principles. Cohen_NGN_Overview_Final.Next Generation Networks: Regulation Regulatory Issues or Challenges Regulatory Consideration for NGN Migration Licensing Consider appropriate regime for classes and types of licences and licensing criteria. There is a shift away from service and technology specific licensing towards horizontal licensing. naming and/or addressing schemes encompass legacy.2007pdf . Numbering Interconnection Standards and Interoperability Source: Cohen. transitional and NGN services and associated directory services. Regulatory considerations include whether new interconnection models may be required.. Next Generation Networks (NGN) Regulation Overview. where licensing is required. 5-7 Feb. T.. the impact of IP based networks and traffic on current interconnection arrangements. Regulatory considerations include mandating standards and 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. defining the parameters of interconnection in a multi-service environment and whether there will still be a need for mandated wholesale interconnection regimes. ensuring no discriminatory access behaviour. ITU Global Symposium for Regulators. To ensure access to numbering resources and ensure that numbering.
Affordability and accessibility are key policy goals that should not be abandoned or altered in a NGN environment.. number portability. Cohen_NGN_Overview_Final. T. 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. quality of service. Issues that require attention include but are not limited to. Regulatory questions include whether VoIP providers should contribute to a universal service fund.. rights and presence management.2007pdf . fixed-mobile and mobile services. There is ongoing relevance to the universal service obligations and levies for NGN migration. priority access to emergency services. privacy and security.Next Generation Networks: Regulation Regulatory Issues or Challenges 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. Next Generation Networks (NGN) Regulation Overview. ITU Global Symposium for Regulators. Universal Service Consumer Protection Source: Cohen. operators’ liability. how to structure universal service contributions and to which technology or service these should attach. whilst these are not onerous on operators such that they compromise in infrastructure development. the provision of location information. 5-7 Feb.
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? . legacy providers are migrating to NGN to augment their revenues.Next Generation Networks: Regulation Regulatory Issues or Challenges 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.
Implication . An incumbent telephone company invests in a high speed broadband network. The financial viability of network investment is damaged. but faces delays in obtaining authorization to provide video content services such as cable TV or IPTV service. and damaged the attractiveness of network investment. The regulatory environment has delayed implementation of expanded service or service choice to customers. The regulatory environment prevents networks from delivering all their capability to customers.Next Generation Networks: Regulation Regulatory Issues or Challenges Examples of regulatory impediments to multiple play Impediment Restrictions on new entry Internet service provider with its own network authorized to provide Internet service but prohibited from providing voice service (VoIP). and deployment of services restricted.
Radio spectrum is available at a nominal price to some users (such as broadcasters) but is only available to others at commercial prices that reflect scarcity value (such as cellular mobile or broadband wireless access operators). The regulatory environment is not providing a technology neutral level playing field.Next Generation Networks: Regulation Regulatory Issues or Challenges Examples of regulatory impediments to multiple play Impediment Non level playing field An incumbent telephone company may have regulatory obligations such as local loop unbundling. The regulatory environment is not providing a technology neutral level playing field. or re-sellers. or price control that do not apply to cable TV operators. with more video content distributed over mobile or broadband wireless access networks. providing the same or similar services. As a result. As convergence progresses. Implication . payment to universal service funds. the need to progress all commercial users towards a common system of economic pricing for spectrum becomes more important. customer choices are distorted and there is a loss of economic efficiency. An incumbent telephone company may have better access to public rights-of-way than cable TV operators.
The optimal spectrum management should become objective of all regulators 267 .Next Generation Networks: Regulation Regulatory Issues or Challenges Overall policy challenges • Ensuring proportionality of regulation including forbearance. • Finding the optimal balance in spectrum management. • Ensuring a technologically neutral regulatory framework. allowing the players freedom of choice. NGN attaches great importance to wireless technologies.
Next Generation Networks: Regulation Regulatory Issues or Challenges In summary. regulation is concerned with • Competition • Investment in infrastructure • Innovation • Public needs • Socio-economic aspects .
services.Next Generation Networks: Regulation Regulatory Issues and Challenges • What are the regulatory intentions in your country? • What should be regulated? Technologies. is this a regulatory advantage? 269 . operations. • Given that Sub-Saharan Africa is not overly burdened by a large variety of services and network types.
2 Some Responses .Next Generation Networks: Regulation V.
Equality of access – in providing access to other operators. Forbearance – the removal of any requirement that owners of NGAN provide access to other operators. under exactly the same conditions.Next Generation Networks: Regulation Some responses • Forbearance or equality of service: In the debate about regulating NGAN turns around two choices: 1. owners of bottleneck infrastructure must offer exactly the same wholesale products. as they provided to themselves or their divisions. 2. 271 .
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 .Next Generation Networks: Regulation Some responses • Forbearance or equality of service: Suppose some operators NGAN are likely to be enduring economic bottlenecks.
Next Generation Networks: Regulation 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 .
3.Next Generation Networks: Regulation Some responses Type of Forbearance Permanent Advantages Disadvantages Avoids reduction 1. Limited or no deployment of new NGAN by new to fear of risk of entrants due to high costs.forbearance in absence of competition. rapid innovation.forbearance on specific technology lead to inefficient selection of NGA solutions . in investment due 2. 274 . lower prices. Limits competition to owners of NGAN. .forbearance on competition lead to loss of consumer benefits (choise. Distortion of market. .forbearance on new technology deployments lead to inefficient and rapid technological investments made to avoid regulated ones. monopoly-like returns on investments. open competition. .
Next Generation Networks: Regulation Some responses Type of Forbearance Advantages Disadvantages Time limited Provide monopoly 1. time and cost for bottleneck owner to offer services on the basis of equality of access). 275 . bottlenecks for a 2. long time after the forbearance period (new services introduced during forbearance. Uncertainty about NGA investments which may rents as incentives take longer to recover than the forbearance to owners of period. Competitors may be adversely affected for a limited period.
276 .Next Generation Networks: Regulation Some responses Forbearance is appropriate when there is widespread and effective competition in the provision of end-to-end NGAN.
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. regulators are faced with the issue of deciding whether to implement an ex post regulatory model. 277 .Next Generation Networks: Regulation Some responses With the emergence of NGNs.
which relies primarily on competition law.Next Generation Networks: Regulation Some responses Ex poste (after the fact) regulation. by contrast calls for establishing few or no specific rules in advance. 278 . but applying regulatory measures to remedy a market failure or anti-competitive situation.
Next Generation Networks: Regulation Some responses Regulator’s Decision Tree NGN Deployment Ex Post Regulation Permanent Forbearance Mandated Access Obligations Ex Ante Regulation Time-limited Forbearance Phase out of existing ex ante obligations .
280 .Next Generation Networks: Regulation 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.
Next Generation Networks: Regulation Some responses Ex ante and ex post checklist 2. Some ex ante regulations can then be phased out. 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. If so. then ex post regulations could be used to maintain a competitive market situation. 281 .
Does a bottleneck situation need to be addressed? If so. 4. 282 .Next Generation Networks: Regulation Some responses Ex ante and ex post checklist 3. it may be necessary to employ the equivalence of inputs to prevent the foreclosure of competition. Is time-limited forbearance or a regulatory holiday necessary? Depends on the market conditions.
283 .Next Generation Networks: Regulation Some responses Ex ante and ex post checklist Equivalence of inputs means that wholesale products sold by the bottleneck operator must be identical to those it sells to its competitiors.
. • One possible route is a multi-stage process that builds on previous stages. For example. • The next stage could possibly be for the regulator to take a lead in building industry consensus on what policy (timetable. competition.Next Generation Networks: Regulation Some responses Regulatory Approaches • There are a number of possible approaches to be considered for the issue of NGN regulation. through formal consultation. say. one could start by building national awareness amongst the stakeholders.) the industry would like best to meet their objectives and reduce risk. interconnection principles etc.
• The final stage could be specific regulation.Next Generation Networks: Regulation Some responses Regulatory Approaches Regulators across the world believe that this step is best taken after sufficient momentum is built and should not be hurried through.g. but it can be implemented in steps. QoS regulation. specific interconnection products. e. cost-based access charges etc. It is given to understand that detailed regulation is desirable. .
3 Role of the Regulator .Next Generation Networks: Migration V.
Extending existing regulations/policies to NGNs. Permanent forbearance from broadening current regulations/policies to NGNs. 3. Transition to ex ante regulation through timelimited use of forbearance 287 .Next Generation Networks: Migration Role of the Regulator Several options for regulators dealing with the migration to NGNs: 1. or 2.
Transition to ex poste regulation through phasing out of regulatory obligations. 288 .Next Generation Networks: Migration Role of the Regulator Several options for regulators dealing with the migration to NGNs: 4.
• Necessity to assure regulatory certainty for incumbent and competitive/alternative providers of services.Next Generation Networks: Migration Role of the Regulator Note • Choice of option depends on the specific conditions of a country. 289 . • Necessity to assure innovation while ensuring competition.
What should be the role of the regulator? Source: OFCOM (2006).Next Generation Networks: Migration Role of the Regulator • The regulator does/does not have a responsibility to provide incentives to operators to make particular investments. NGA 290 . A thorny issue.
say.Next Generation Networks: Migration Role of the Regulator Regulatory Approaches There are a number of possible approaches to be considered for the issue of NGN regulation. one could start by building national awareness amongst the stakeholders. interconnection principles etc. • The next stage could possibly be for the regulator to take a lead in building industry consensus on what policy (timetable. • One possible route is a multi-stage process that builds on previous stages. .) the industry would like best to meet their objectives and reduce risk. through formal consultation. For example. competition.
• The final stage could be specific regulation. . specific interconnection products.g. QoS regulation. but it can be implemented in steps. cost-based access charges etc.Next Generation Networks: Migration Role of the Regulator Regulatory Approaches Regulators across the world believe that this step is best taken after sufficient momentum is built and should not be hurried through. It is given to understand that detailed regulation is desirable. e.
Next Generation Networks: Regulation V.4 Regulatory Check List .
subscription television) restricted to a number of service providers? 294 ..g.Next Generation Networks: Regulation 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.
Does the current licensing framework facilitate the provision of different services different platforms (i. are they regulated in equal conditions as traditional services or does IPspecific regulation exist? 295 .e.Next Generation Networks: Regulation Regulatory Check List 2. Are VoIP and other IP-based services allowed? If so. technology neutrality)? 3..
What are the regulatory policies for these new technologies and services with regard to numbering. interconnection.Next Generation Networks: Regulation Regulatory Check List 4. and rights of ways and shared deployment? 5. universal service. Does the regulatory framework promote diversification of access networks? 296 . spectrum.
Are institutional and structural changes of the regulatory authority required to address an NGN environment? 7.Next Generation Networks: Regulation Regulatory Check List 6. Does the regulatory framework encourage and facilitate public (municipal) initiatives? 297 .
.g.Next Generation Networks: Regulation Regulatory Check List 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. 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. and interconnection? . universal service.
intellectual property laws.g.Next Generation Networks: Regulation Regulatory Check List 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. 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? . electronic transactions. computer crime..
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. regulators and policy-makers can begin to consider the processes required to address IP based and full NGN transition. • For those markets that have not reached mature levels of competition. However. • Regulators can encourage a competitive market based outcomes rather than regulatory intervention. consultations with the industry and the public. 300 . • Universal access policies will remain vital. 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. This may include research. For example.Next Generation Networks: Regulation Regulatory Check List Recommendations • If they have not already done so. unbundling the local loop to avoid duplication in the access network. which should be used to pre-empt and address market failure. training.
301 . • Policy should create reasonable certainty for the industry and investment. • Policy should encourage the continued operation and maintenance of legacy circuit switched PSTN until users are successfully migrated to new networks and services. • Consumer education and participation is critical and it is the regulators responsibility. • Voice communications are starting to migrate away from the PSTN and the migration onto the Internet will gather pace. can explore a move towards unified and technology neutral licensing.Next Generation Networks: Regulation Regulatory Check List Recommendations • Policy-makers and regulators. 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. rather than promoting certain technologies through technology and service-specific licensing. Regulators need to ensure that the consumer focused and regulatory issues are addressed in advance.
302 . fraudulent behaviour. • Policy makers should address the issues of security and access to emergency services for consumers.g. 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. (e. the regulator may consider the establishment of a self-regulatory body representative of all stakeholders in a convergent industry. as is the case with regard to GSM. advertising. particularly in relation to development of standards.Next Generation Networks: Regulation Regulatory Check List Recommendations • Where industry self regulation is feasible. • Where relevant. regulators should be ready to accelerate the type approval process for NGN devices and rapid deployment. • 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. objectionable content. A memorandum of understanding may be helpful. • Where content concerns emerge.
. • A regulator should not set and implement its own agenda.Next Generation Networks: Regulation Regulatory Check List • Absolute independence of regulatory bodies is neither possible nor desirable. • “Independent” regulators are expected to be subject to government oversight and a system of checks and balances.
• The body must be an impartial. objective. non-political enforcer of government-determined policies by means set out in controlling statutes of the regulator.Next Generation Networks: Regulation Regulatory Check List • Effective regulation that supports sustainable investment requires some independence of the regulator from political influences. free of transitory political influences. transparent. especially on a dayto-day or decision-by-decision basis. . • The regulator should also be independent from the industry that supplies ICT services.
its decisions are not discredited. and the policy of the government is implemented. so that the regulatory process is not politicized. regulators need insulation from political intervention. .Next Generation Networks: Regulation Regulatory Check List • The regulator should implement the policy of the government and only make decisions that are within its legal authority. • However.
• prescribing well-defined professional criteria for appointments. except for clearly defined due cause. • involving both the executive and the legislative branches of government in the appointment process. . free of ministerial control.Next Generation Networks: Regulation Regulatory Check List Independence safeguards • providing the regulator with a distinct statutory authority. • appointing regulators (the Director General or Board/Commission members) for a fixed period and prohibiting their removal (subject to formal review).
. staggering the terms of members so that they can be replaced only gradually by each successive government. Optimally.Next Generation Networks: Regulation Regulatory Check List Independence safeguards • where a collegiate (Board/Commission) structure has been chosen. • providing the agency with a reliable and adequate source of funding. 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.
. except through carefully designed channels such as new legislation or appeals to the courts based on existing law.Next Generation Networks: Regulation Regulatory Check List Independence safeguards • 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.
February 23 – 27. Botswana.Botswana Telecommunications Corporation Gaborone. 2009 Next Generation Networks Standardization Module VI 309 .
Next Generation Networks Standardization As a evolving technology. including • Architechure • Protocols • End-to-end quality of services • Service platforms • Network management • Lawful interception 310 . work on standards continues in many areas.
authentication. authorisation) • Accounting • Inter-network interconnection and operation 311 . work on standards continues in many areas.Next Generation Networks Standardization As a evolving technology. including • security (privacy.
Next Generation Networks Standardization Standardisation work is being undertaken by Several international bodies • IETF • ITU-T • ETSI (TISPAN) • TIA • ATIS 312 .
) 313 Next Generation Networks Standardization . Liberty Alliance. …..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.
Next Generation Networks Standardization Are we involved in the development of standards? Should we be involved? .
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