CONVERGENCE in ICT Fall semester 2006 NTNU Gennady Yanovsky

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CONVERGENCE in ICT

Fall semester 2006NTNU

Gennady Yanovsky

SPb State University of TelecommunicationsSt. Petersburg, Russia

[email protected]

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Course Outline

Part 1. Evolution in ICT1. General aspects of convergence in ICT

2. Global trends and underlying forces determining the progress on the world IC sector

3. Evolution of network technologies

Part 2. Converged networks and services4. Convergence of fixed networks – Convergence of PSTN and

Data Networks• Main protocols and building blocks for VoIP• QoS issues for VoIP

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Course Outline (Cntd.)

5. Convergence of fixed networks – Convergence of Internet and TV (TV over IP)

• Main protocols and building blocks for IPTV• QoS issues for multimedia traffic over IP6. Next Generation Networks• Key drivers of NGN development • NGN architecture • Main NGN building blocks and protocols7. Convergence of fixed and mobile networks based on IP

Multimedia Subsystem (IMS) paradigm• Key drivers of IMS development • Architecture IMS-3GPP, main protocols and building blocks• Architecture IMS-TISPAN• Main IMS applications

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References

 R. Koch, G. Yanovsky. Evolution and convergence in telecommunications. Lecture Notes, ICTP, Trieste, Italy, 2002

1. I. Faynberg, L. Gabuzda, H.-L. Lu. Converged Networks and services. Internetworking IP and PSTN. John Wiley and Sons, Inc., 2000.

2. S. Keshav. An engineering approach to computer networking: ATM networks, the Internet and telephone network. Addison-Wesley, 1997.

3. D. McDysan, D. Spohn. ATM – Theory and applications. McGraw-Hill, 1998.

4. E. Desurvire. Signaling principles, network protocols, and wireless systems. John Wiley and Sons, Inc., 2004

5. E. Desurvire. Broadband access, optical components and networks, and cryptography. John Wiley and Sons, Inc., 2004

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References (Cntd.)Quality of Service in converged networks

1. D. McDysan. QoS and traffic management in IP and ATM networks

2. M. Smirnov et all (Eds). Quality of future internet services. Lecture notes in computer science. Springer, 2003

F. Cairncross. The death of distance: how the communications revolution will change our lives. Oxford University Press, 1997.

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Part 1. Evolution in ICT

1. General aspects of convergence in ICTA. Information/Computers and Telecoms – two different worlds still exist?

B. What is convergence – possible definitions?

C. Four aspects of convergence in ICT

D. Main areas of convergence in ICT

E. General picture of convergence

F. Conclusion - Challenges in different areas

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1. General aspects of convergence in ICT

A. Information/Computers and Telecoms – two different worlds still exist?

Yesterday -• Different services - broadcasting, voice telephony, on-line/off-line computer services

• Different networks and platforms (technologies)

• Different terminals - TV sets, telephones, computers

• Different laws and different regulations, usually at national level

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Current scenario: services tied to specifictechnologies and networks

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Future scenario: shift from multiple servicespecific networks to multiservice network

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Nowadays -New key forces of Global ICT Evolution

• New regulations in IC sector• Digitalization of networks and devices• Huge unlimited network resources (capacity)• Grows of Internet• Wide expansion of wireless technologies

are transforming the way we communicate, and transforming the industry that delivers IC services

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Results of Global ICT Evolution:

# Different sectors, such as IT, telecommunications, media and entertainment are in CONVERGING - or have already CONVERGED

# Services CONVERGENCE is a merger of different applications and multiple traditional and new services bundled as a single option (Triple Play) - mix of voice, video and data (wireline and wireless, NB and BB) # Consumer devices’ CONVERGENCE for different services - telephony, TV or personal computing

#Telecom operators, media and IT companies are using the new technological and legislative possibilities to offer services outside their traditional business sectors, increasingly on an international or global scale

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B. What is convergence – possible definitions?

1. Simplified approach - combining of personal computers, telecommunications and TV into a user experience that is accessible to everyone.

Market study:• U.S. - 50% of homes have computers with modems - 100% of homes have a TV set• Among TV users - high popularity of the Internet, video-on-demand, and greater interaction with content

BUT - Diffidence about buying and using a personal computer

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TVs

Are not very interactive

PCs

Are highly interactive, tends to be more text-oriented

Oriented primarily toward entertainment and news

Oriented in terms of purpose and content toward business and education applications

Displays are large Displays are smaller

Are easy to operate, requiring almost no education to use

Can be very challenging to use and usually require formal education or a certain personal learning

TV sets PCs

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B. What is convergence? (Cntd.)

2. Extended approach•The coming together of telecommunications, computingand broadcasting into Information and CommunicationsTechnologies (ICT)

•Within telecom - the convergence of voice&data, fixed&mobile networks/services, public&corporative networks

•ICT uses:- Single technology to transmit voice, data and video- Single carrier/provider for voice, data and video

•ICT expands the range and quality of services

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B. What is convergence? (Cntd.)

Definition 1. Green Paper on the Convergence of the

Telecommunications Media and Information Technology Sectors (European Commission, Brussels, December 3, 1997)

CONVERGENCE is • Possibility of various networks platforms to provide practically the same set of services or • Unification of user’s devices, such as telephone, PC and TV set in the form of a single terminal

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B. What is convergence? (Cntd.)

Definition 2. www.itvdictionary.com

(1) The coming together and integration of two or more technologies.  Digital television, computers and telephony being combined is an example of convergence

(2) The combining and presenting of different media (multimedia) into a single delivery system. The Internet is an example of convergence

(3) A color TV's three primary colored pictures need to precisely overlap (converge) to make one multicolored picture

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C. Four aspects of Convergence in ICT

• Terminal convergence

• Access convergence

• Network convergence

• Services convergence

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C. Four aspects of Convergence in ICT (Cntd.)

1. Terminal convergence – the possibility to treat with voice, data and video on a common terminal device, such as a PC, phone or TV set

• PC-to-PC “phone calls” • IP phones that use Ethernet connections• Desktop phone turns into a computing device• Unified communications for person-to-person communications• Web on TV set

Convergence of devices allows service providers to work with the devices with different technologies to offer new cost-effective services

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C. Four aspects of Convergence in ICT (Cntd.)

2. Access convergence – the using of different access technologies like DSL, cable modems, PON/AON, wireless technologies in the access segment to provide multiservice access to new services and apps

• Copper cable (twisted pair) - xDSL• Coax cable – cable modems• Fiber optic cable – PON/AON• Wide range of wireless technologies

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C. Four aspects of Convergence in ICT (Cntd)

3. Network convergence - the integration of voice, data and video networks' transport and signaling infrastructures in a single unified networking system, often referred to as a "multiservice network“

• IP as common transport platform• SIP as common signaling protocol• IP Multimedia Subsystem (IMS) as an emerging

architecture of converged fixed and mobile networks

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C. Four aspects of Convergence in ICT (Cntd)

4. Services convergence - the merger of applications and multiple services bundled as a single option.

• Voice, video and data services (Multimedia communications) – VoIP, Unified messaging, Videoconferencing

• Converged of mobile and fixed services

Target of convergence in ICT – is a creation of cost-effective, unified network infrastructure to design, deploy, manage and support

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D. Main areas of convergence in ICT

# Voice and data services

# Mobile and fixed services

# Multimedia communications

Examples of new convergent services include:• VoIP• Internet services delivered to TV sets via systems like Web TV • E-mail and World Wide Web access via mobile telephones • Mobile Internet

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Results – differences are disappeared

• Data and Voice Services - from separate voice and data services to multimedia applications (IP-Telephony, Web Contact Centers)

• Fixed and Mobile Networks and Services - from separate ones to

the single infrastructure (CAMEL, VHE, IMS)

• Public and Corporate Networks – from dedicated networks to

open networks

• Phone, TV and Computer Terminals – from separate devices to

combined multimedia terminals

• Broadcasting services – from broadcasting services to Web-

based TV services (IATV, VoD, WebTV)

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E. General picture of convergence:

Technological Sectors

ITU

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E. General picture of Convergence: Market Sectors

ITU

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F. Conclusion - Challenges in different areas

Regulations•Legislative and regulative docs in the telecommunications, media and IT sectors in national and international legislation should be adapted to the convergence process.

•Convergence require a reassessment of regulatory responsibilities at a national or international level.

•Additional actions are required to ensure that the interests of consumers and of users are respected.

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F. Conclusion - Challenges in different areas (Cntd)

Technologies•What research and development projects should be launched, what types of products should be developed in the light of convergence, to the issue of completing the transition from separate to converged services/networks/devices?

•What should be the objectives of standardization in the light of convergence?

MarketWill the convergence phenomenon require adaptation of existing approaches or new business models to be applied to issues of market entry, licensing, customers’ behavior, pricing?

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2.Global trends and underlying forces determining the progress on the world IC sector

2.1. Reforms of IC sector - evolution of legislation and regulations 2.2. Motive technological forces shaping evolution processes

in ICT - Microprocessors - Photonics2.3. Megatrends in ICT - Digitalization - Mobile communications - Grows of Internet - Convergence of services/networks/devices

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2.1. Reforms of IC sector - evolution of legislation and regulations

• Liberalization• Privatization

# Liberalization (in general) - weakening or total rejection of state control over all types of economic activities and commercial parameters

# Liberalization in telecom sector - the transition from a monopoly market structure to a competitive environment and resulted in tectonic shifts in telecommunications industry

# 15 years ago the majority of telecommunications companies in the world were under strong state control.

# Second half of 90s – beginning of liberalization in telecom sector of European countries, accompanied by privatization

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A. Steps of IC sector’s reformProcess’ steps

Privatization

Privatizationand liberalization

Liberalization

Implications

• Government sells all or part of its shares (either private or public IPO)

• Provision of incentives to investors

• ___________________________________________

• Combination of both approaches to increase efficiency of incumbent and to introduce competition

• ___________________________________________

• Allowance of competitors into the market

• Incumbent remains owned by government but are submitted to competition

ICT sector’s reform

Incumbents

New players

Source: McKinsey

Market-based reforms onthree ways

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B. Significant impact on access infrastructureTeledensity growth: Change in teledensity* in different countries

between 1996 and 2000

Upper-high income developed countries

Lower-high income developedcountries

Emerging countries

Developing countries

+54

+21

+48

+53

+13

+20

+26

+3+5 +5

No reform

Privatization only

Liberalization+Privatization

* Fixed plus mobile lines per 100 population - teledensity

Source: ITU, EMC, WEFA, McKinsey

GDP for each GoC

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C. Reform’s impact on the Internet penetration

• Access availability• Prices• Competition• Enabled lines• Choice of services• Interconnection conditions

Internet user density

Developed

Lower income developed

Emerging

Developing

54

27

13

39

16

8

39

17

1

64

12

1 +63

+38

+31

+41

Lowest in group

Group median

Highest in group

Source: ITU, EMC, NielsenNet Ratings, World Economic Forum, McKinsey

Early beginning of the liberalization

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B. Significant impact on access infrastructure (Cntd)

• Developing and power countries – great difference in results

• Countries that have pursued privatization or liberalization have had much higher growth rates in teledensity in comparison with countries without reforms

• Countries that have pursued full reform – privatization plus liberalization have much more increases

• Most of this growth was concentrated in mobile access

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D. Reform’s levers:

• Access availability

• Degree of price competition

• Choice of services

• Interconnection regime for Internet and data services

• Percent of fixed and mobile access lines enabled for Internet use

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E. Interact with other ICT market’s dimensions

• Tariff policy Examples: # US – selection of fees’ options for local calls - no data interconnection fees

# In most countries dial-up Internet is metered and surfers pay per minute

Flat rate Internet users have been more likely to adopt broadband technologies • The importance of these details will keep ICT sector’ reform in a central role in the future

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F. Some critical issues of IC sector’s reform

• Government aggressively tries to use a reform to get huge revenue – shares’ and licenses’ overcharges

Example: 3G Licenses

In Germany were sold 6 licenses for a total of 50 billion Euro (2001)

The total worldwide market volume for mobile networks of 50 to 55 billion Euro in 2002 and 2003.

The license fee in Germany - 558 Euro/inhabitant (Auctions) At Norway only 10 Euro per/inhabitant (Contest)Such a low investment on the other hand will make an operator profitable in a short time.

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*Estimated

Source: BITKOM; Basis: UMTS Forum

UMTS license costs per 2x5 MHz band (in million Euro)

4270

3543

1224

619419

272 23866 33 12

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3G Licenses: average cost/inhabitants

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G. Reform of IC sector: demands for regulation authorities• Promote access - fixed and wireless - not hinder it

• Promote broadband technologies - fixed or wireless

• Invest through governmental institutions in modern technologies (e.g. e-government)

• Propel reliable tax conditions

• Negotiate at least comparable conditions between the countries

• Self-regulation of the market price (regulated by market, not by governmental institutions)

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H. Motive forces of reform in IC sector

1. Technological progress – • growing productivity of microprocessors

• progress in fiber optic communications systems

• highly effective methods of compression and transportation of information

• Networks with unlimited resources

• Variety of services

• Decrease of communications services costs

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H. Motive forces of reform in IC sector (Cntd)

2. Globalization – different forms of activities, which were previously carried out at local or regional levels are presently being carried out in a continental and world scale

• Old concept of globalization – physical exports of goods

• The new dimension in globalization today – telecommunications, entertainment, media and world financial markets on a global scale

• The key technologies in today’s world of global media and finance is ICT technologies with the need for global standards and access to technology.

•Globe becomes "global village"

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3. Digital divideAccess to telephone, radio, TV, Internet, satellite

Digital divide = Telecom divide (2000)

H. Motive forces of reform in IC sector (Cntd)

43Digital divide, 2003

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Digital divide, 2003 (Cntd)

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Table 1. World Data Profile Indicators 1999 2002 2003 Fixed lines and mobile telephones (per 1,000 people) 234.2 363.8 405.7 Personal computers (per 1,000 people) 69.1 100.8 .. Internet users (per 1,000 people) 58.7 130.9 149.9 Population, total, billion 6.0 6.2 6.3 GNI per capita, Atlas method (current US$) 5,060.0 5,130.0 5,510.0 Table 2. Data profile for group of countries with high income Indicators 1999 2002 2003 Fixed lines and mobile telephones (per 1,000 people) 960.3 1,249.7 1,267.5 Personal computers (per 1,000 people) 341.6 466.5 .. Internet users (per 1,000 people) 186.8 364.2 376.8 Population, total, billion 0.948 0.967 0.972 GNI per capita, Atlas method (current US$) 25,910.0 26,570.0 28,600.0 Table 3. Data profile for group of countries with low income Indicators 1999 2002 2003 Fixed lines and mobile telephones (per 1,000 people) 20.4 39.4 55.7 Personal computers (per 1,000 people) 3.6 6.9 .. Internet users (per 1,000 people) 1.5 8.1 16.2 Population, total, billion 2.1 2.3 2.3 GNI per capita, Atlas method (current US$) 380.0 400.0 440.0 Table 4. Data profile for group of least developed countries Indicators 1999 2002 2003 Fixed lines and mobile telephones (per 1,000 people) 6.3 17.7 24.2 Personal computers (per 1,000 people) 2.1 4.2 .. Internet users (per 1,000 people) 2.0 4.0 13.5 Population, total, billion 0.619 0.660 0.675 GNI per capita, Atlas method (current US$) 280.0 290.0 310.0

Indicators describing a level of penetration of different IC services