ITU-T Kaleidoscope 2010 Beyond the Internet? - Innovations for future networks and services

1. Standardisation from an industry perspective ITU-T Kaleidoscope 2010Beyond the Internet? - Innovations for future networks and services Mostafa Hashem Sherif, Ph. D. AT&T mhsherif@att.com

2. 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

3. Current ICT Landscape Content Manager ( Retailer , aggregator , etc .) End-user or Customer Content Provider Service Provider 2 Service Provider 1 Network Network Service Provider, (virtual network operators, ISPs Payment operator, etc.) Provider 1 Provider 2 Infrastructure Provider ( s )

4. B2B Applications Online Catalogs Supplier Orders Internal Servers Purchase order Common rules and interfaces Accounting Reception Receiving Payment Order Payment Secure Financial Network Buyer's Bank Supplier's Bank Pune, India, 13 – 15 Dec 2010: ITU-T Kaleidoscope 2010 – Beyond the Internet? Innovations for future networks and services 4

5. Standardisation Through Standards Development Organizations Standard Development Organization (Owner) Consumers (Developers) Sponsors Contributions End-users TechnicalCommittee (Producer) Embodiment of the standard (Product within a product) Delegates (Suppliers) Standard (Product) Pune, India, 13 – 15 Dec 2010: ITU-T Kaleidoscope 2010 – Beyond the Internet? Innovations for future networks and services 5

6. Actors in Standardisation • The actors: • manufacturers, service providers, content distributors, standardization bodies, governments • No end-users • Governments role • Funding • Taxation • Large orders • IPR rules

7. 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

8. 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

9. 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

10. Manufacturers vs. Service Providers Time Frames with the Same Technology Pune, India, 13 – 15 Dec 2010: ITU-T Kaleidoscope 2010 – Beyond the Internet? Innovations for future networks and services 10 10

11. Standards and Intellectual Property Rights (IPR) • 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

12. 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

13. 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

14. 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)

15. Standardisation of Technology Evolution New technology Technology transition Enabling standards Anticipatory standards Performance 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

16. Technology Innovations in Telecommunications Services Improved networking technologies + improved OSS + improved or new applications Disruptive networking technologies + new OSSs + M&Ps + new applications Platform Innovation Radical Innovation New Technology Technological discontinuity Incremental Innovation Architectural Innovation Existing Technology Sustaining networking technologies +improved OSS + new applications Existing Value Chain New Value Chain Mature networking Technology + improved M&Ps + new applications Sustaining innovations 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

17. Concerns and Objectives in Innovations Platform Innovation Radical Innovation New Technology Technological Discontinuity Incremental Innovation Architecture Innovation Existing Technology Existing Value Chain New Value Chain Disruptive Innovations Value Chain Discontinuity Sustaining Innovations Performance Improvement Risk Minimization Market building System Optimization Pune, India, 13 – 15 Dec 2010: ITU-T Kaleidoscope 2010 – Beyond the Internet? Innovations for future networks and services 18

18. Evolution of Ethernet as An Example Performance Improvement Risk Minimization Carrier Grade Ethernet Ethernet Bridges G.8010, Fault Management (G.8031, G.0832, Y.1731) Platform Innovation Radical Innovation Technological Discontinuity Incremental Innovation Architecture Innovation ITU-T SG 15 10 GHz Ethernet IEEE 802 Market building System Optimization 2.4 Mb/s, 10 Mb/s, 100 Mb/s, 1Gb/s, 10Gb/s 802.1Q (Q-in-Q), 802.1a (VLAN tag), 802.1Qay (MAC-in-MAC), etc Disruptive Innovations Value Chain Discontinuity Sustaining Innovations Pune, India, 13 – 15 Dec 2010: ITU-T Kaleidoscope 2010 – Beyond the Internet? Innovations for future networks and services 19

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

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

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)

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

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.