Innovation Dynamics in the IP Environment

1. Innovation Dynamics in the IP Environment Dr. Abdelfattah ABUQAYYAS ICT/HRD Consultant

2. CONCERNS: 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 • Regulatory Challenges - VoIP, IPTV and Mobile TV • New business models • Direct implications for developing countries.

3. Introduction • The emergence of the new technologies has been driven by a combination of trends within technology, regulation and business models. • The major new trends have been within NGN, VoIP related to broadband Internet access, advanced wireless systems - including third-generation mobile (3G) and wireless LANs/ WiFi • NGN is the vision of telecom operators on how to stay competitive using IP based technology to deliver new applications combining voice and data and enable fixed-mobile convergence. • 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 • The user will have access to multimedia applications regardless of the device used or the type of network connected to. The change is clearly disruptive!!!

4. TECHNOLOGY MARKET POLICY Parameters Driving Changes Applications Regulation Services

5. Technological Trends

6. The Internet and the Internet Protocol (IP)Internet • The emergence of the Internet, is one of the most important changes in the ICT sector in recent times. • 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’ • There are a number of unsolved problems and challenges related to the ‘Internet of things’ which will be on the political agenda in the coming years.

7. Internet Services

8. The Internet and the Internet Protocol (IP)IP • Managed IP networks • When data is transported over an IP network, the content is sent in a consecutive flow of packets between the sender and receiver. • In managed IP networks the network access providers can control transmission properties within the boundaries of their own network, • IP version 6 (IPv6) • The current Internet Protocol, IPv4 has had a rapid growth. • The IPv4 address consists of 32 bits meaning that there are only about 4 billion addresses available, this is the main weakness of IOv4 • In the future development, where we are surrounded by the ‘Internet of Things’11, there will be an even greater need for IP addresses. • This has resulted in standardization of a new version of Internet Protocol, IPv6 to cope with the shortcomings of IPv4. • IPv6 extends the address room to128 bits, instead of 32 in IPv4, meaning that the number of IP addresses will not be any problem in the foreseeable future. • The other issues that are dealt with in IPv6 are the QoS and security issues.

9. NEXT GENERATION NETWORKS (NGN)Definitions • The NGN concept is mainly used in two ways: • A broad concept encompassing the whole development of new network technologies, new access infrastructures and even new services, and • A focused concept of specific network architecture and related equipments, with one common IP core network deployed for the entire legacy, current and future access networks. • ITU defines NGN as: • “A packet-based network able to provide telecommunication services and able to make use of multiple broadband, QoS-enabled transport technologies and in which service-related functions are independent from underlying transport related technologies. It enables unfettered access for users to networks and to competing service providers and/or services of their choice. It supports generalized mobility which will allow consistent and ubiquitous provision of services to users”

10. Next Generation Networks (NGN)Architecture • 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

11. Next Generation Networks (NGN)Challenges • There are a number of Issues and challenges connected to the overall organization of the NGN platforms • Which interconnection model will be used in the NGN? • the IP interconnection models like peering and transit, or • the PSTN interconnection and tariff regime be modified and used. • Does NGN a threat for the telecom incumbents ? • Does the other market players see the NGN as an opportunity? • Two main roles of the regulator regarding NGN : • To make sure that effective competition can take place • To make sure that the consumers and the level of services they receive is not affected in a negative way in this transition.

12. Next Generation Access Networks (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 • Bit stream 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

13. Next Generation Access Networks (NGAN)Wireless • WiFi • Unlicensed Industrial, Science and Medical (ISM) band (The IEEE 802.11b, g standards). 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 (IEEE802.16e). • Digital broadcast infrastructures • Not worldwide standards and different markets apply to different standards: European DAB &DVB, US ATSC or Japanese ISDB standards.

14. New/Future framework - Convergence • The traditional broadcasting and telecommunication industries have co-evolved with the developing Internet, but the technological development is making this current sectoral distinction un-sustainable. • Content and service provision has already taken place across the traditional sectoral boundaries for some time. • Different services can be carried on different infrastructures and the end users’ access equipment will be designed to communicate with different services. • This process of fusion of content, service, infrastructure and end user equipment is denoted as convergence

15. Convergence Convergence can be expressed as: “The ability of different network platforms to carry essentially similar kinds of services and the coming together of consumer devices such as the telephone, television and personal computer”. “Convergence is not just about technology, It is about services and about new ways of doing business and of interacting with society“.

16. Voice over Internet Protocol (VoIP) • VoIP is the process of breaking up audio or video into small chunks, transmitting those chunks over an IP network, and reassembling those chunks at the far end so that two people can communicate using audio and video. • Using VoIP technology and the general Internet as backbone, new providers can offer competitive prices, particularly for long distance and for international calls. • The main signaling standards in VoIP are H323 and SIP, • H323 - is an ITU-T umbrella standard released in 1996 which consists of signaling and transport and coding protocols. H323 can be used for pure VoIP applications. • SIP - stands for Session Initiation Protocol. It is an application-layer control protocol that has been developed and designed within the IETF. It is an end-to-end -oriented signaling protocol

17. VoIP Deployment Scenarios • VoIP deployment scenarios • between two Computers or other IP terminals. • from IP to PSTN, using a gateway. • from PSTN to IP, using a gateway. • IP terminals are computers, mobile phones PDA’s and dedicated IP phones. • Advanced signaling systems are being used

18. VoIP Regulation - Remarks for discussion • In an industry that globally is moving toward deregulation and in an area as grey as VoIP - is it voice or data? - the reactions are likely to be mixed. • Internet should not be regulated. • Internet telephony is different than traditional telephony, but it is still a public service!!!! • in the interests of the protection of the consumers and consumer rights we found it necessary to implement minimum regulation. • Internet-to-internet calls should not be regulated – de facto!!! • It does not make sense to regulate arriving VoIP calls to certain number, but regulating VoIP calls originating from that number is the issue • Regulation should concentrate on the two-directional services • Numbers, security, quality of service, call emergency numbers, consumer protection and might be billing are among the hot regulatory issues .

19. IPTV • IPTV started by offering different services using streaming TV over the Internet and Internet TV’ channels, • Three observations are important in this development: • IP platforms, especially broadband platforms, are becoming a competing infrastructure for delivering of TV services. • The consumers must have IP set-top boxes that convert the IPTV to regular TV and send it to the TV • This model is used on many broadband platforms, mainly as a part of ‘triple play’ services. • IP platforms are changing ‘broadcast’ in a fundamental way from a broadcast service to an on demand service. • In IPTV provision, the not on live content can be put on a server so that users can use them when they want • The content providers can bypass service providers and directly offer services to the end consumers.

20. IPTV and Mobile TV Regulatory ChallengesWhat is IPTV and Mobile TV?

21. IPTV and Mobile TV Regulatory Challenges Classification of IPTV and Mobile TV

22. IPTV and Mobile TV Regulatory Challenges What Licensing Requirements are Imposed on IPTV and Mobile TV? Does the regulatory framework require such services to be subject to licensing? • Different approaches • License requirement may vary based on service being offered (e.g., live television or video-on-demand) • Licensing IPTV as a pay television service (e.g., Hong Kong) • Creating a new category of licenses for such services (e.g., South Korea, Pakistan) • Requiring a provider to obtain broadcasting and telecom licenses(e.g., Pakistan, Hong Kong SAR, Singapore) • Allowing provision of IPTV or mobile TV if operator already holds carrier license

23. IPTV and Mobile TV Regulatory Challenges Does the Legal and Institutional Framework Facilitate the Deployment of these Services? • Are there market entry barriers on incumbent telecom providers that impede their ability to provide video services (e.g., cross-ownership and joint provision restrictions)? • Does it make sense to apply existing regulations, such as access obligations, to incumbent providers? • Are there foreign ownership restrictions that impede investment in such services (e.g., different foreign ownership caps on telecommunications companies versus broadcasters)? • Should all content regulations applicable to broadcasters be imposed on such providers? • Are providers under the jurisdiction of different government authorities and subject to different requirements?

24. Innovation Dynamics in the IP Environment THANK YOU Dr. Abdelfattah ABUQAYYAS ICT/HRD Consultant