Innovation Dynamics in the IP Environment The Future of Voice ITU Workshop Geneva, 15-16 January 2007 Knud Erik Skouby CICT, Danish Technical University (DTU) Skouby@cict.dtu.dk Center for Information and Communication Technologies Technical University of Denmark Overview Innovation Economics: Changes and disruptions The Internet & The Internet Protocol Next Generation Networks Convergence and Converged services Conclusion Center for Information and Communication Technologies Technical University of Denmark Innovation in the IP Environment Two overall effects: Changes in Technology - Separation between network technology and services - Intelligence moved from the core to the edge of a network - Scalability - Distributed design and decentralised control Changes in products/ markets - access to multimedia applications regardless of the device used or the type of network connected to Disruption Center for Information and Communication Technologies Technical University of Denmark Parameters driving changes TECHNOLOGY Applications Regulation POLICY Services MARKET Center for Information and Communication Technologies Technical University of Denmark Technological trends Third wave Information Society technological trends ICT in Public sector ICT in private sector Second wave Applied technological trends in Tele- Datacoms IP Mobile NGAN Convergence & Converged services First wave Basic Technological trends Digitalization Computerisation Packet Switching Center for Information and Communication Technologies Technical University of Denmark The Internet In the beginning primarily used for - data services, E-mail and World Wide Web (WWW) Today: - a variety of audio/video services like Internet radio and TV, B-logs, computer games, etc Future: - ‘Internet of things’: RFID and ‘sensor networks’ Internet Protocol (IP) design principles - Distributed design and decentralized control Center for Information and Communication Technologies Technical University of Denmark Internet services - Examples of Internet’s impacts on media servcies Center for Information and Communication Technologies Technical University of Denmark Next Generation Networks (NGN): A specific network architecture and related equipments, with one common IP core network deployed for the entire legacy. Relates to the transition of current dedicated voice (and radio/TV) networks to the IP based networks: - Next Generation Core Network (NGCN) the new switching, gateways and transmission equipments in the core network, enabling several access networks to use the same core network - Next Generation Access Network (NGAN) new access networks, as deployment of optical fibers, and the associated challenges Center for Information and Communication Technologies Technical University of Denmark NGAN: Fixed networks Main access technologies are xDSL and cable modem. - Main development tendencies for these technologies: Extension of coverage Increase in capacity per connection. Unbundling Bitstream access Other technologies - FTTx Capacity is almost a ‘non-issue’ but of course high capacity has high cost In the current provisions of FTTH from energy firms, figures of 2 – 10 Mbps and up to 100 Mbps can be identified The main deployment of fibre is in the backbone network of the new/alternative broadband operators - PLC Availability of infrastructure in the households, No need for wireing High bandwidth: started around 1 Mbitps but know 45 Mbps modems are available Source: TDC Center for Information and Communication Technologies Technical University of Denmark NGAN Technologies - Wireless WiFi - Unlicensed Industrial, Science and Medical (ISM) band (The IEEE 802.11b standard). Absence of licensing barriers, the simplicity of the technology and cost effectiveness WiMAX - the IEEE802.16 standard for fixed wireless access; it is expected to go mobile in 2008. Digital broadcast infrastructures - Not worldwide standards and different markets apply to different standards: European DAB &DVB, US ATSC or Japanese ISDB standards. Center for Information and Communication Technologies Technical University of Denmark Traditional/current framework -Silo based Terminal The Silo framework is based on: Technology specific parameters Regulatory parameters Center for Information and Communication Technologies Technical University of Denmark Internet Network Telecom Service Press media Content Broadcast Different technologies, Different sectors, Different industries Different markets Different regulations New/Future framework -Convergence Center for Information and Communication Technologies Technical University of Denmark Convergence (II) Single Play Dual Play 2000-2004 -2000 2005- TV Internet Telephone FTTH DSL Cable Wireless Triple Play Internet TV TV Telephone Internet Telephone Internet TV Telephone Based on Henrik Clausen, IDC Telecom Conference 2006 Center for Information and Communication Technologies Technical University of Denmark Convergence (III) Center for Information and Communication Technologies Technical University of Denmark VoIP Scenario Calls from PSTN to IP & from IP to PSTN, using a gateway Characteristics: •IP terminals are computers, mobile phones PDA’s and dedicated IP phones. •Calls can be placed both to and from a traditional PSTN telephone. •Advanced signaling systems are being used Center for Information and Communication Technologies Technical University of Denmark Conclusion: Impact on the Telecom Market Vertical Separation of Networks and Services Service and Network Convergence Death of distance and cheaper bandwidth Low cost wireless access in rural areas Change of the fundamental cost structures and investment patterns in the ICT/ telecom sector Infrastructure as well as applications, services and content oriented technology are changed Market Convergence New business models Direct implications for developing countries. Center for Information and Communication Technologies Technical University of Denmark