Trend and Challenges in Telecom Convergence Ten-lee Hwang April, 2005.

Trend and Challenges in Telecom Convergence

Ten-lee HwangApril, 2005

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AgendaAgenda

Trend of Telecom Convergence Development in 3G, VOIP, and WLAN Challenges Posed to Service

Operators

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Telecom Industry (communication)

main framesdesk top computing

PC-LAN

PC-WANIntranet/Internet

electronicpublishing andentertainment

Computer Industry (computer)

Media Industry (content)

Wireline

mobility

Wireless/Cellular

PSTN

ISDN

PC/Servers

3G/Wireless Internet

Carrier class

xDSL

Trend of Telecom ConvergenceTrend of Telecom Convergence- - Forces from computer and media industries

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Wireless

GSM

AM/FM

-

Fixed ADSL, Cable Modem

PSTN

Cable TV

Broadcast

Mobile

VHF/UHF

Satellite

Cordless

Trend of Telecom ConvergenceTrend of Telecom Convergence- - Starting from traditional telecom

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Fixed Line operator

Mobile operator

TV broadcast, Cable channels, Radio broadcast

WLAN operator

Convergence of new technologies offers opportunities and risks for communication / content players.

WirelessWireless

Mo

bile

Mo

bile F

ixedF

ixed

VoIPVoIP

GSM @ HomeGSM @ Home

BroadcastBroadcast

Voice

Data

Voice

Data

ConvergenceConvergence

Trend of Telecom ConvergenceTrend of Telecom Convergence - - Convergence in delivering network technologies

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HSDPA

3G/WCDMA

EDGE

GPRS

GSM

Speed (bit/s)

SMS

Voice

Internet Graphics

Internet Text

Medium quality video

Highquality video

Mobile office

10M

1M

384 k

115 k

56 k

10 k

1 k

Messaging

Mobile technologies are rolling out 3G and HSDPA to provide a access network with higher speeds.

Trend of Telecom ConvergenceTrend of Telecom Convergence- - Mobile evolution

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WirelessWireless

Mo

bile

Mo

bile F

ixedF

ixed

BroadcastBroadcast

Voice

Data

Voice

Data

Convergence to services

and contents

Convergence to services

and contents

Trend of Telecom ConvergenceTrend of Telecom Convergence- - Summary

TV

Cable modem/setup box

ADSL

M-Taiwan

PC/WLAN

Celluar/Wifi handsets

Contents

3G

Convergence of new technologies actually bring convergence to services and contents

From mobile to wireless

From fixed to wireless

From analog to digital, e.g., DAB/DMB

Mobile evolution from 2G to 3G

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AgendaAgenda

• Trend of Telecom Convergence• Development in 3G, VOIP, and WLAN• Challenges Posed to Service

Operators

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2002 2003 2004 2005 2006

WCDMWCDMAA

WCDMA (UMTS) HSDPA3GPP Release 99 Rel. 4 Rel. 5

1) As of Sep’04, 39 W-CDMA operators launched. An additional 76 operators had either launched pre-commercial W-CDMA networks or were in the process of deploying their networks at the end of the period.

2) 12 M sub worldwide and Japan,UK,Italy dominate WCDMA uptake

CDMACDMACDMA2000 1X

CDMA2000 1XEV-DO Enhanced EV-DO

1) Around 100 operators in 60 countries in six continents have launched CDMA2000 1X services.

2)CDMA2000 1X reach 120M sub worldwide

3)Asia-Pacific continued to be the fast-growing w/89M users and Japan & Korea remain the largest market.

1) There’re 16 operators commercial launch CDMA2000 1XEV-DO service.

2) 10 M sub worldwide

Development in 3G, VOIP, and WLAN - 3G WCDMA/CDMA evolution

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Development in 3G, VOIP, and WLAN - 3G lessons learnt

A few things have been important seeing the 3G launch….

• More and more countries and operators launched 3G as the technology and handsets become much more ready, demonstrated in recent GSM events.

• Network readiness was found to be critical for 3G take up.

• Services and pricing were also found important

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Today

• ZyXEL

• WellTech

• D-Link

• Yahoo

• e-Bay

• Pchome

• Skype

• Hinet

• Seednet

• NCIC

• CHT

• Nortel

• CISCO

• Alctel 99

• Multiservice switching

• IP PBX

• TDM • ATM Switch

• Media gateway

• I.E.

• Internet

• SW download

• ADSL

• Cable Modem

00 01 02 03 04 05

• GPRS

• Portal Site

• Wireless

• VoIP Gateway

• IP Phone

• USB Phone

• H.323

• SIP

• VoIP Mobile(WLAN+GSM)

• VoWLAN

• PABX

• Switch

• Gatekeeper

From Napa consulting group’s From Napa consulting group’s research, research,

• 15% of all desktop phones 15% of all desktop phones shipped are new VoIP enabled in shipped are new VoIP enabled in Y2003.Y2003.

• 50% of all desktop phones 50% of all desktop phones deployed will be VoIP enabled in deployed will be VoIP enabled in Y2006.Y2006.

From Napa consulting group’s From Napa consulting group’s research, research,

• 15% of all desktop phones 15% of all desktop phones shipped are new VoIP enabled in shipped are new VoIP enabled in Y2003.Y2003.

• 50% of all desktop phones 50% of all desktop phones deployed will be VoIP enabled in deployed will be VoIP enabled in Y2006.Y2006.

Ne

two

rkT

ran

sp

ort

ISP

/IS

R

Va

lue

-ad

d

Se

rvic

e

Ap

pli

ca

tio

n

Po

rta

l &

Ch

an

ne

lD

ev

ice

• VoIP

Finally from

concept to reality

Development in 3G, VOIP, and WLAN - VOIP industry value chain

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Development in 3G, VOIP, and WLAN - Rapid growth of WLAN’s

1.United States17,291

9.Taiwan643

2.United Kingdom7,402

3.Germany4,009

4.France2,789 5.Japan

1,225

6.Italy7187.Spain

672

8.Canada654

10.Australia558

Top 10 CountriesTop 10 CountriesTop 10 CountriesTop 10 Countries

Source from www.jiwire.com, Oct. 2004

• There are total 57,627 hotspots at 42,803 locations in 75 countries.• Top 10 Cities are London (940), New York (725), Paris (692), Tokyo (472), Hong Kong (438), Singapore (365), Chicago (346), San Francisco (341), Berlin (298), and Kuala Lumpur(288). • Voice will be the next big thing to emerge in the hotspot market.

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Development in 3G, VOIP, and WLAN - M-Taiwan status

• Currently, total 19 wireless broadband application demo sites are sponsored by Industrial Development Bureau Ministry of Economic Affairs (MOEAIDB, 經濟部工業局 ).• M-City for Taipei and Kaohsiung were BOT wireless cases in M-Taiwan Plan.

BOT: Kaohsiung CityBOT: Kaohsiung City

50% City Sub, Y2005

90% City Area, End Y2005

台北市政府台南市政府台中市政府

國立歷史博物館台北縣政府彰化縣政府桃園縣政府屏東縣政府

國立歷史博物館台北縣政府新竹市政府台中市政府

玉山國家公園管理處雲林縣政府嘉義市政府高雄縣政府屏東縣政府花蓮縣政府宜蘭縣政府

國立傳統藝術中心金門縣政府

92年度(共8案)

93年度(共13案)

Wireless broadband applicationdemo sites sponsored byMOEAIDB

Demo sites sponsored by Demo sites sponsored by MOEAIDBMOEAIDBSource from www.moeaidb.gov.tw

To cover 800K home subscribers and 10K public subscribers

To start from transportation applications

MRT, Y2004

BOT: M-Taipei CityBOT: M-Taipei City

Ping-tung

Ch'ia-ai

Yun-lin

Hsin-chu

TaoyuanTaipei

I-lan

Hualien

Kaohsiung

Kinmen

T'ai-nan

Taichung

Chang-hua

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With convergence in mobile and wireless, customers can choose which technology to use to make voice calls.

IP world - WLAN

Cellular world

Cellular and WLAN compete for voice and data traffic

Development in 3G, VOIP, and WLAN - From mobile to wireless

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AgendaAgenda

• Trend of Telecom Convergence• Development in 3G, VOIP, and WLAN• Challenges Posed to Service

Operators

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WLANのｻｰﾋﾞｽ

OverseasOverseas

JapanJapan

One stop service ／ billing

EnterpriseDB

Fixed line broadband

IntranetTV

conference

TVPhone

Remote

accessbroadband email

WLAN serviceFOMA service

3G area： high mobility、 charge by usage

WLAN

3G

WLAN area： high speed、 flat rateWLAN area： high speed、 flat rate

Intranet

TV conferen

ce

TVPhone

Remote

accessbroadband

email

Future service image

Similar for T-Mobile and SK Telecom

Challenges Posed to Service Operators- Linking up celluar and WLAN

The incumbent has to continue listening customer needs even if the technologies are disruptive.

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Challenges Posed to Service Operators- Service operation requires is a process of improvement

Access network and technology alone cannot create satisfied customers – there are many things additional for network operations and service operations – will be a challenge to new entrants

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Thank You