International Telecommunication Union
NGN Business Models
Chae Sub Lee
Vice-Chairman of ITU-T SG13
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks"
Dar es Salaam, 3-5 October 2006
Contents
1. Why need Next Generation?
2. Key trends in Telecommunications
3. Impacts of NGN
4. NGN Configurations and Players
5. Utilization of NGN
6. Conclusion
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks"
Dar es Salaam, 3-5 October 2006
1. Why need Next Generation?
Success, Problems or Dilemmas?
ss
e
sin
Service based
Infrastructure
Monopolized
Communication era
Information
Society
(21C)
Off line
Life
Network based
Infrastructure
t
n
u
e
B
m
s irem
o
d
c
le nee equ
e
• T se r r e r
•U utu rs
•F the
•o
On line
Life
Competitive
ICT era
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks"
Dar es Salaam, 3-5 October 2006
s
1. Why need Next Generation?
Telecom Market Today
*Source : “Mobility and Fixed Mobile Convergence, John Visser, Nortel, ITU-T/ATIS NGN Workshop, Las Vegas, USA, March.2006
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks"
Dar es Salaam, 3-5 October 2006
1. Why need Next Generation?
What is keeping SP CEOs awake at night?
o Revenue is saturated or declining for most
o
o
o
o
core products
Competition is increasing in all markets
Google, Skype et al are creating a new
kind of competitive landscape Æ Venice
Project
Costs are too high
We need a solution NOW
*Source : “NGN: an answer to all end users’ problems?”, Chris Lewis, NGN Industry Event, London, UK 11.2005
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks"
Dar es Salaam, 3-5 October 2006
1. Why need Next Generation?
But even Mobile Business…
ARPU of SK Telecom in Korea
50
45
40
35
$
30
ARPU
25
Wireless
Internet
20
15
10
5
0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
Dec
Source:
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks"
Dar es Salaam, 3-5 October 2006
1. Why need Next Generation?
ARPU Analysis
o Analysis means
• Subscribers saturated in Korea
• ARPU increases little and slightly
• Voice revenue keeps stagnant
• Wireless data revenue has jumped three fold over
the past three years
• But ARPU doesn’t increase that much because of
price reduction
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks"
Dar es Salaam, 3-5 October 2006
1. Why need Next Generation?
No clear reason, but want…..
What is the main benefit of FMC for telecom service
providers?
Lower capex or opex
Lower cus tom er churn
Higher ARPU
Ability to expand into new m arket s egm ents
Don't know/not s ure
0
5
10
15
20
25
30
Pe rce ntage of re sponde nts
*Source : “NGN, IMS and FMC”, Graham Finie, NGN Industry Event, London, UK 11.2005
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks"
Dar es Salaam, 3-5 October 2006
35
1. Why need Next Generation?
Everybody needs next, so… NGN
N
G
N
Intelligent
Office
Integrated
Engineering
Moves, adds
and changes
*Source : “NGN: an answer to all end users’ problems?”,
Chris Lewis, NGN Industry Event, London, UK 11.2005
Mobile Workers
Teleworking
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks"
Dar es Salaam, 3-5 October 2006
2. Key trends in Telecommunications
Packet based Environments
Past : Seper. of Voice & Data Transp.
Circuit Switch.
Access Capa.
Circuit Switch.
Transp. Capa.
Packet Switch.
Transp. Capa.
Present : Sep. of V & D Access
Circuit Switch.
Access Capa.
Packet Switch.
Access Capa.
Circuit Switch.
Transp. Capa.
Packet Switch.
Transp. Capa.
xDSL / FTTx
Future : Integration of V & D Access and Transp.
Near Future : Integration of V & D Transport
Circuit Switch.
Access Capa.
Packet Switch.
Access Capa.
Circuit Switch.
Transp. Capa.
Packet Switch.
Transp. Capa.
Packet Switch.
Access Capa.
Packet Switch.
Transp. Capa.
VoIP / VToA
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks"
Dar es Salaam, 3-5 October 2006
2. Key trends in Telecommunications
Converged User Terminals
4G Mobile-phone/PDA
Phone
FAX
PC FAX
Data inc.
Everything
• Real Time DATA
• Non-Real Time DATA
PC
TV
PC TV
Multimedia PC
(Desk Top / Lap Top)
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks"
Dar es Salaam, 3-5 October 2006
2. Key trends in Telecommunications
Competition in Enterprises
Program
Provider Role
Information Service Provider Role
End User
Role
Information
Service
Brokerage
Information
Service
Provision
Contents
Provider Role
Information
Information
Information
Brokerage
Provision
Ownership
Vendor Role
Terminal
Equipment
Supply
Service
Infra.
Communication
& Networking
of Information
Application
Creation
Support
Telecommunication
Service Provision
Information Processing
& Storage service
Provision
Telecommunication Infrastructure
Computer Infrastructure
Information
Creation
Support
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks"
Dar es Salaam, 3-5 October 2006
3. Impacts of NGN
NGN in 4 words…
• by Fixed
• by Mobile
• by Wireless
NGN == Broadband
Broadband Managed
Managed IP
IP Network
Network
NGN
•
•
•
•
for Services
for Businesses
for Players
for Users
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks"
Dar es Salaam, 3-5 October 2006
3. Impacts of NGN
Key Principles of NGN
z Open architecture: open to support service creation,
service updating, and incorporation of service logic
provision by third parties and also support “Distributed
control” as well as enhanced security and protection.
z Independent provisioning: service provision process should
be separated from network operation by using distributed,
open control mechanism to promote competition.
z Multiplicity: The NGN functional architecture shall offer
the configuration flexibility needed to support multiple
access technologies.
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks"
Dar es Salaam, 3-5 October 2006
3. Impacts of NGN
Competition and Collaboration
Pre-NGN
Video
Services
(TV, movie,
etc)
Telephone
Services
Data
Services
(WWW,
e-mail, etc)
Video
Services
Network
Telephone
Services
Network
Data
Services
Network
New PolicyyRegulation
Environment (Horizontal)
New Business
Environment (Compositional)
Service-based Pol./Reg.
Voice Internet Video
MM
Access Network
Provider Domain
Pol.
Reg.
ANP 1 (DSL)
Service/Application
Provider Domain
SP1SP2SP3
SPm
ANP 2 (DSL)
IP (Future Packet ?) Platform
Pol. X
Reg. x
xDSL/Optic based Fixed-Mobile
ANP 3 (Opt)
User
ANP N (Cable)
Resource-based Pol./Reg.
CNP
1
CNP
2
CNP
3
Core Network
Provider Domain
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks"
Dar es Salaam, 3-5 October 2006
3. Impacts of NGN
Driving Forces from NGN
z Support of New Value Added Services
- Saturation of both Fixed and Mobile telephone services
- Need of Integrated (Fixed+Wireless) and Convergence (Telecom+Broad.)
z Support of New Service Paradigm
- Increase of Service requirements (Flex. of Access, Diversity of Service etc.)
- Increase of High Quality services (Beyond QoS over the Internet)
z Continue growing energy for IT Business
- Preparation of New Revenue Stream based on IT Business
- Development of new high-tech and market
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks"
Dar es Salaam, 3-5 October 2006
4. NGN configuration and players
Overview on NGN configuration
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks"
Dar es Salaam, 3-5 October 2006
4. NGN configuration and players
Horizontal view of NGN configuration
Internet
Services
Operator A
Internet
Non-SIP
Services
Operator B
Core Network
Laptop
Access
Network
IP Connectivity
Access Network
IMS
Services
Core Transport
Network
Internet
Services
Core Network
Firewall
Transit
Network
Transit
Network
IMS
Services
Core Transport
Network
Access
Network
IP Connectivity
Access Network
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks"
Dar es Salaam, 3-5 October 2006
4. NGN configuration and players
Basic NGN Roles and Players
value added
service provider
customer
retailing
service provider
user
wholesale
service provider
technical relation and reference point
commercial relation
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks"
Dar es Salaam, 3-5 October 2006
4. NGN configuration and players
NGN roles: First level of specialization
retail
retail
service
service provider
provider
value
value added
added
service
provider
service provider
user
user
core
core
service
service provider
provider
access
access transport
transport
provider
provider
transit
transit transport
transport
provider
provider
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks"
Dar es Salaam, 3-5 October 2006
4. NGN configuration and players
NGN roles: Second level of specialization
retail
retail
service
service provider
provider
integrating
integrating
service
service provider
provider
value
value added
added
service
provider
service provider
user
user
service
service control
control
provider
provider
access
access transport
transport
provider
provider
core
core transport
transport
provider
provider
transit
transit transport
transport
provider
provider
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks"
Dar es Salaam, 3-5 October 2006
5. Utilization of NGN
NGN; a Convergence Platform
z Combination IP with Broadband accelerating intrinsic convergence
• Service convergence: Web based service provisioning
• Network convergence: IP over any broadband transport networks
z Advanced Mobile and Wireless technology initiate business
convergence such as Fixed-Mobile convergence
z Broadband Fixed, Wireless and Mobile technology boost another
business convergence, called “Multiple Play: Tele-Broadcasting”
TeleBroadcasting
FMC
NGN
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks"
Dar es Salaam, 3-5 October 2006
5. Utilization of NGN
NGN; Enablers for Convergence
Business/Application oriented projects
Limited
Services
BE IP
Limited BB
FMC
N
G
N
•Simple linkage btw layers
•Simple business relationships
•Simple players
RFID
IPTV
Others
Managed IP
Converged Broadband
•Simple linkage btw layers with dynamics
•Diverse and Flexible business relationships
•Diverse business models and players
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks"
Dar es Salaam, 3-5 October 2006
5. Utilization of NGN
NGN as an Infrastructure for IPTV
TV
QoS, Traffic control, Security,
X-casting, Accounting etc.
IP
802.xx
Access
Cable
Domain 1
IntServ
Domain 2 Domain 3
DiffServ
MPLS-TE
Domain 4
Over-Prov
xDSL
Multi-Service Packet Transport
NGN
2G/3G
Wireless
Integrated QoS, Traffic control,
Security, Multi services etc.
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks"
Dar es Salaam, 3-5 October 2006
5. Global Standards Activities
Next Direction of Global Standardization
Construction for Business/Application
(Project oriented approach)
FMC
Implementable Standards
- For Converged Infrastructure
- For Migration
RFID
IPTV
Others
Managed IP
Converged Broadband
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks"
Dar es Salaam, 3-5 October 2006
5. Utilization of NGN
Use model of NGN
VoIP
Messaging
N-IDs
IPTV
Others
QoS, Security, Media Handling etc
NGN
Fixed-BB-AN*
Wireless-BB-AN
Mobile-BB-AN
Broadband Core-T
Broadband Core-T
IntCon.
R-BCS-BB-AN**
* Include cable based Broadband Access Network technology
** means radio based broadcasting transport capabilities include satellite means
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks"
Dar es Salaam, 3-5 October 2006
6. Conclusion
Infrastructure vs. Services/Applications
• Each infras. for
each Serv./Appl.
• Interworking was
a big issue
• No interoperability
Æ ISDN as a dream
• Fixed/Mobile
Infra for each F/M
Serv./Appl.
• Interconnection
was a big issue
Æ Forgot ISDN
• IP infra for
Internet Serv/
Applications
• QoS, Security
are big issue
• Integrated infras.
for most of
Serv./Appl.
• FMC, Tele-Broad.
• Premium/Managed
BB IP based Network
• Reg/Policy become
issue
Æ ISDN become real
Time
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks"
Dar es Salaam, 3-5 October 2006
6. Conclusion
NGN : Nothing new, but upgrading, adding Value
Up-grading
Current
Infrastructure
Adding
Value
Current Generation-Beach
Next Generation-Water Park
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks"
Dar es Salaam, 3-5 October 2006
Thank you for
your attention !!!
ITU-T/ITU-D Workshop "Standardization and Development of Next Generation Networks"
Dar es Salaam, 3-5 October 2006