Trend and Challenges in Telecom

Convergence
Ten-lee Hwang
April, 2005
 Agenda

 Trend of Telecom Convergence

 Development in 3G, VOIP, and WLAN
 Challenges Posed to Service Operators

2
 Trend of Telecom Convergence
- Forces from computer and media industries

Telecom Industry (communication)

mobility
xDSL 3G/Wireless Internet
Wireline Wireless/Cellular
ISDN Intranet/Internet
PSTN PC-WAN Carrier class
PC-LAN
Computer Industry (computer) PC/Servers
desk top computing
main frames

electronic
Media Industry (content) publishing and
entertainment

3
 Trend of Telecom Convergence
- Starting from traditional telecom
Wireless
Satellite

Cordless

-
PSTN

Fixed
GSM Mobile ADSL, Cable Modem

Cable TV

AM/FM
Broadcast VHF/UHF
4
 Trend of Telecom Convergence
- Convergence in delivering network technologies
Convergence of new technologies offers opportunities and risks for
communication / content players.

Wireless WLAN operator

VoIP
GSM @ Home
Fixed Line operator
Voice Voice
Mobile

Fixed
Convergence

Data Data

Mobile operator

Broadcast
TV broadcast, Cable
channels, Radio broadcast 5
 Trend of Telecom Convergence
- Mobile evolution
Mobile technologies are rolling out 3G and HSDPA to provide a access
network with higher speeds.
Speed (bit/s)

10M
HSDPA High
quality video

3G/ 1M
WCDMA Medium
quality video

384 k
Mobile office
EDGE
Internet Graphics 115 k

GPRS
Internet Text
56 k
Voice
GSM 10 k
Messaging
SMS 1k 6
 Trend of Telecom Convergence
- Summary
Convergence of new technologies actually bring convergence to
services and contents

Wireless From fixed to

From mobile to wireless
wireless M-Taiwan

PC/WLAN

Celluar/Wifi handsets

ADSL
Voice Voice
Convergence
Mobile

Fixed
to services
and contents
Data Data

Mobile evolution from 2G to 3G

Cable modem/setup box
Contents

TV

3G Broadcast
From analog to digital,
7
e.g., DAB/DMB
 Agenda

• Trend of Telecom Convergence

• Development in 3G, VOIP, and WLAN
• Challenges Posed to Service Operators

8
 Development in 3G, VOIP, and WLAN
- 3G WCDMA/CDMA evolution
2002 2003 2004 2005 2006

WCDMA (UMTS) HSDPA

WCDMA
3GPP Release 99 Rel. 4 Rel. 5
1) As of Sep’04, 39 W-CDMA operators launched.
An additional 76 operators had either launched
pre-commercial W-CDMA networks or were in the
process of deploying their networks at the end of
the period.
2) 12 M sub worldwide and Japan,UK,Italy
dominate WCDMA uptake

1) Around 100 operators in 60 countries in six continents have

CDMA2000 1X launched CDMA2000 1X services.
CDMA 2)CDMA2000 1X reach 120M sub worldwide
3)Asia-Pacific continued to be the fast-growing w/89M users
and Japan & Korea remain the largest market.

CDMA2000 1XEV-DO Enhanced EV-DO

1) There’re 16 operators commercial launch

CDMA2000 1XEV-DO service.
2) 10 M sub worldwide 9
 Development in 3G, VOIP, and WLAN
- 3G lessons learnt
A few things have been important seeing the 3G launch….

• More and more countries and operators launched

3G as the technology and handsets become much
more ready, demonstrated in recent GSM events.

• Network readiness was found to be critical for 3G

take up.

• Services and pricing were also found important

10
 Development in 3G, VOIP, and WLAN
- VOIP industry value chain
• ZyXEL
Device
• IP Phone
• WellTech • USB Phone • VoIP
Mobile(WLAN
• D-Link
• VoIP Gateway +GSM)
Channel
Portal &

• Yahoo
• e-Bay • Portal Site
Application
Value-add

• Pchome • I.E. • VoIP

Service

• Skype • Internet
• GPRS
• SW download From Napa consulting group’s
research,
• VoWLAN
ISP/ISR

• Hinet
• 15% of all desktop phones
• Seednet
• ADSL • Wireless
shipped are new VoIP enabled in
Y2003.
• Cable Modem
Transport

• 50% of all desktop phones

• NCIC deployed will be VoIP enabled in
• CHT Y2006.
• ATM Switch • H.323
• TDM
gateway • SIP
• Gatekeeper
• Media
• Nortel
Network

• PABX • Multiservice switching

• CISCO • Switch • IP PBX
• Alctel
99 00 01 02 03 04 05 11

Today
 Development in 3G, VOIP, and WLAN
- Rapid growth of WLAN’s
• There are total 57,627 hotspots at 42,803 locations in 75 countries.
• Top 10 Cities are London (940), New York (725), Paris (692), Tokyo (472), Hong
Kong (438), Singapore (365), Chicago (346), San Francisco (341), Berlin (298),
and Kuala Lumpur(288).
• Voice will be the next big thing to emerge in the hotspot market.
Top 10 Countries

2.United Kingdom
7,402 8.Canada
654
4.France
2,789 5.Japan
3.Germany 1,225 1.United States
4,009 17,291

9.Taiwan
6.Italy
7.Spain 643
718
672
10.Australia
558

12
Source from www.jiwire.com, Oct. 2004
 Development in 3G, VOIP, and WLAN
- M-Taiwan status
• Currently, total 19 wireless broadband application demo sites are sponsored by
Industrial Development Bureau Ministry of Economic Affairs (MOEAIDB, 經濟部工業局).
• M-City for Taipei and Kaohsiung were BOT wireless cases in M-Taiwan Plan.
Wireless broadband application
demo sites sponsored by BOT: M-Taipei City
MOEAIDB  50% City
台北市政府 Sub, Y2005  MRT, Y2004
Taipei
台南市政府
台中市政府
Taoyuan
92年度 國立歷史博物館 Kinmen
(共8案) 台北縣政府  90% City
Hsin-chu I-lan Area, End
彰化縣政府
桃園縣政府 Taichung Y2005
屏東縣政府
國立歷史博物館 Chang-hua Hualien
台北縣政府  To cover 800K home subscribers
新竹市政府 Yun-lin and 10K public subscribers
台中市政府 BOT: Kaohsiung City
玉山國家公園管理處 Ch'ia-ai
雲林縣政府
93年 度 T'ai-nan
嘉義市政府
(共 13案 )
高雄縣政府
屏東縣政府 Kaohsiung
花蓮縣政府
宜蘭縣政府 Ping-tung
國立傳統藝術中心
金門縣政府 Demo sites sponsored by
Source from www.moeaidb.gov.tw MOEAIDB To start from transportation applications 13
 Development in 3G, VOIP, and WLAN
- From mobile to wireless

With convergence in mobile and wireless, customers can choose which

technology to use to make voice calls.

IP world
- WLAN

Cellular
world

Cellular and WLAN compete for voice and data traffic 14

 Agenda

• Trend of Telecom Convergence

• Development in 3G, VOIP, and WLAN
• Challenges Posed to Service Operators

15
 Challenges Posed to Service Operators
- Linking up celluar and WLAN
The incumbent has to continue listening customer needs even if the
technologies are disruptive.
Future service image
Japan
Similar for T-Mobile and SK
Telecom
One stop service／ billing

Enterprise
DB

Remote TV TV Overseas
broadband Intranet email
access conference Phone

WLANのｻｰﾋﾞｽ
FOMA service 3G area：high mobility、charge by usage
WLAN service
WLAN area：high speed、flat rate
Remote
broadband
access

Intranet email
Fixed line broadband 3G
TV TV
WLAN conference Phone

16
 Challenges Posed to Service Operators
- Service operation requires is a process of improvement
Access network and technology alone cannot create satisfied customers
– there are many things additional for network operations and service
operations – will be a challenge to new entrants

17
Thank You

18