ITU-T Kaleidoscope 2010 Beyond the Internet? - Innovations for future networks and services Standardisation from an industry perspective Mostafa Hashem Sherif, Ph. D. AT&T mhsherif@att.com Pune, India, 13 – 15 December 2010 Standardisation in Telecommunication Services Telecommunication services Infrastructure + operations support systems + content Network externalities and common rules Telecommunications vs. computer networking Standards change and evolve Is standardisation money well spent? Pune, India, 13 – 15 Dec 2010: ITU-T Kaleidoscope 2010 – Beyond the Internet? Innovations for future networks and services 2 Current ICT Landscape Content Manager (Retailer ,aggregator , etc.) End-user or Customer Content Provider Service Provider 2 Service Provider 1 Network Network Provider 1 Provider 2 Service Provider, (virtual network operators, ISPs Payment operator, etc.) Infrastructure Provider (s) Pune, India, 13 – 15 Dec 2010: ITU-T Kaleidoscope 2010 – Beyond the Internet? Innovations for future networks and services 3 B2B Applications Online Catalogs Orders Supplier Internal Servers Purchase order Common rules and interfaces Accounting Reception Receiving Payment Order Payment Secure Financial Network Buyer's Supplier's Bank Bank Pune, India, 13 – 15 Dec 2010: ITU-T Kaleidoscope 2010 – Beyond the Internet? Innovations for future networks and services 4 Standardisation Through Standards Development Organizations Standard Development Organization (Owner) Consumers (Developers) Sponsors Contributions Delegates (Suppliers) End-users Technical Committee (Producer) Standard Embodiment of the standard (Product within a product) (Product) Pune, India, 13 – 15 Dec 2010: ITU-T Kaleidoscope 2010 – Beyond the Internet? Innovations for future networks and services 5 Actors in Standardisation The actors: manufacturers, service providers, content distributors, standardization bodies, governments No end-users Governments role Funding Taxation Large orders IPR rules Pune, India, 13 – 15 Dec 2010: ITU-T Kaleidoscope 2010 – Beyond the Internet? Innovations for future networks and services 6 Highlights of the ICT Standardisation Process Distributed process Many interfaces and many stakeholders None has direct control over the standardization process Those who make standards are anonymous and do not answer for the long-term effect of their technical choices Difference in perspective between each stakeholder, particularly in time Pune, India, 13 – 15 Dec 2010: ITU-T Kaleidoscope 2010 – Beyond the Internet? Innovations for future networks and services 7 Standards Development Organisations Owners but not producers of standards Assist in standards production and distribution (and promotion?) New waves of SDOs Efficiency vs. Group think Temporary structures => Long-term maintenance of the specifications Pune, India, 13 – 15 Dec 2010: ITU-T Kaleidoscope 2010 – Beyond the Internet? Innovations for future networks and services 8 Role of Manufacturers vs. Operators Until deregulation (until 1980s’) Tight coupling between an operator and a preferred manufacturer Operators lead standardization After deregulation (1990’s onwards) Manufacturers lead standardization More entrants and proposals Example: GSM vs. 3G (UMTS) Multiplication of claims Fragmentation of property rights Pune, India, 13 – 15 Dec 2010: ITU-T Kaleidoscope 2010 – Beyond the Internet? Innovations for future networks and services 9 Manufacturers vs. Service Providers Time Frames with the Same Technology Services 4 -10 years Equipment Time Pune, India, 13 – 15 Dec 2010: ITU-T Kaleidoscope 2010 – Beyond the Internet? Innovations for future networks and services 10 Standards and Intellectual Property Rights (IPR) Feature Standards IPRs Knowledge Shared across supply chain Interoperability Restricted Goal Monetization For complicated systems: many patents and many holders Conflicts and market forces GNU License and Open Source Pune, India, 13 – 15 Dec 2010: ITU-T Kaleidoscope 2010 – Beyond the Internet? Innovations for future networks and services 11 IPR Issues Most SDO allow patented or patentable technologies Holder of IPR is in a controlling position Old culture: Reasonable and non-discriminatory licensing – 1956 Consent Degree of the US Dept. of Justice vs. the Bell System New culture The patent holder is not necessarily the inventor (“patent trolls”) Submarine patents Legal cases can last for years Pune, India, 13 – 15 Dec 2010: ITU-T Kaleidoscope 2010 – Beyond the Internet? Innovations for future networks and services 12 Examples of Patent Pools ITU-T G.711.1 ITU-T G.729 IEEE 802.11 MPEG AAC (Advanced Audio Coding) MPEG-2 AAC (ISO/IEV 13818-7) AVC/H.264 Pune, India, 13 – 15 Dec 2010: ITU-T Kaleidoscope 2010 – Beyond the Internet? Innovations for future networks and services 13 Example of IPR Wars VESA VL-bus technologies Rambus (1999-2008 law suite) GSM (Motorola) TETRA (DVSI) WCDMA (Ericsson vs. Qualcom => EU vs. USA) H.264 (Qualcomm vs. Broadcom) Pune, India, 13 – 15 Dec 2010: ITU-T Kaleidoscope 2010 – Beyond the Internet? Innovations for future networks and services 14 Standardisation of Technology Evolution New technology Performance Technology transition Anticipatory standards Enabling standards Responsive standards Existing technology Time Pune, India, 13 – 15 Dec 2010: ITU-T Kaleidoscope 2010 – Beyond the Internet? Innovations for future networks and services 15 Technology Innovations in Telecommunications Services Improved networking technologies + improved OSS + improved or new applications New Technology Platform Radical Innovation Innovation Disruptive networking technologies + new OSSs + M&Ps + new applications Technological discontinuity Existing Technology Incremental Architectural Innovation Innovation Mature networking Existing Technology + improved Value Chain M&Ps + new Sustaining applications innovations New Value Chain Sustaining networking technologies +improved OSS + new applications Disruptive innovations Value chain discontinuity Pune, India, 13 – 15 Dec 2010: ITU-T Kaleidoscope 2010 – Beyond the Internet? Innovations for future networks and services 17 Concerns and Objectives in Innovations Performance Improvement New Technology Risk Minimization Platform Innovation Radical Innovation Technological Discontinuity Existing Technology System Optimizatio n Incremental Architecture Innovation Innovation Market building Existing Value Chain Sustaining Innovations New Value Chain Value Chain Discontinuity Disruptive Innovations Pune, India, 13 – 15 Dec 2010: ITU-T Kaleidoscope 2010 – Beyond the Internet? Innovations for future networks and services 18 Evolution of Ethernet as An Example Performance Improvement Carrier Grade Ethernet Ethernet Bridges G.8010, Fault Management (G.8031, G.0832, Y.1731) Risk Minimization Platform Innovation Radical Innovation Technological Discontinuity ITU-T SG 15 10 GHz Ethernet System Optimization Incremental Architecture Innovation Innovation IEEE 802 2.4 Mb/s, 10 Mb/s, 100 Mb/s, 1Gb/s, 10Gb/s Sustaining Innovations Market building 802.1Q (Q-in-Q), 802.1a (VLAN tag), 802.1Qay (MAC-in-MAC), etc Value Chain Discontinuity Disruptive Innovations Pune, India, 13 – 15 Dec 2010: ITU-T Kaleidoscope 2010 – Beyond the Internet? Innovations for future networks and services 19 Some Rules of Thumbs (1) Architectural innovations Likelihood of no standards or standard wars increases Platform innovations Technology competition Radical innovations are the riskiest Anticipatory standardisation is very risky Pune, India, 13 – 15 Dec 2010: ITU-T Kaleidoscope 2010 – Beyond the Internet? Innovations for future networks and services 20 Some Rule of Thumbs (2) Risk management anticipatory standards /radical innovations Marketing tool enabling standards/architectural innovations Scale and performance improvement enabling standards/platform innovations Cost reduction responsive standards/incremental innovations Pune, India, 13 – 15 Dec 2010: ITU-T Kaleidoscope 2010 – Beyond the Internet? Innovations for future networks and services 21 Is Standardisation Worth the Effort? Not all innovations are the same Not all standardisations should be the same The scope of the standard should depend on The phase in the technology life Nature of the standard (component vs. technology) Pune, India, 13 – 15 Dec 2010: ITU-T Kaleidoscope 2010 – Beyond the Internet? Innovations for future networks and services 22 Some Major Problems in the Current Environment Lack of quality measures for standards Lack of accountability IPR abuses Pune, India, 13 – 15 Dec 2010: ITU-T Kaleidoscope 2010 – Beyond the Internet? Innovations for future networks and services 23 Additional Readings T. M. Egyedi and M. H. Sherif, "Standards’ dynamics through an innovation lens: Next generation Ethernet networks, ” IEEE Communications Magazine, Vol. 48, No. 10, October 2010, pp. 166–172 (updated version of the paper presented in the ITU Kaleidoscope 2008 Conference). M. H. Sherif and D. Seo, "Government role in information and communications technology innovation", Proceedings of ITU-T Kaleidoscope: Innovations for Digital Inclusion, Mar del Plata, Argentina, 31 August – 1 September 2009, S7.1, available at http://www.itu.int/publ/T-PROC-KALEI-2009/en. M. H. Sherif, K. Jakobs, and T. M. Egyedi, "Standards of quality and quality of standards for telecommunications and information technologies," pp. 427–447 in Challenges in the Management of New Technologies, M. Hörlesberger, M. El-Nawawi and T. Khalil, edts., World Scientific Publishing Co., Singapore, 2007 (Updated from the Proceedings of the 14th International Conference on Management of Technology, Vienna, Austria, May 22-26, 2005). M. H. Sherif, "Standards for networked equipment and services," in The Encyclopedia of Life Support Systems, 2007. M. H. Sherif, Managing Projects in Telecommunication Services, John Wiley & Sons, 2006, Chapter 2. 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