CONVERGENCE in ICT Fall semester 2006 NTNU Gennady Yanovsky

1. CONVERGENCE in ICT Fall semester 2006 NTNU Gennady Yanovsky SPb State University of Telecommunications St. Petersburg, Russia yanovsky@sut.ru

2. Course Outline Part 1. Evolution in ICT 1. 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 services 4. Convergence of fixed networks – Convergence of PSTN and Data Networks • Main protocols and building blocks for VoIP • QoS issues for VoIP

3. 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 IP 6. Next Generation Networks • Key drivers of NGN development • NGN architecture • Main NGN building blocks and protocols 7. 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

4. 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

5. 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.

6. Part 1. Evolution in ICT 1. General aspects of convergence in ICT A. 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

7. 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

8. Current scenario: services tied to specifictechnologies and networks

9. Future scenario: shift from multiple servicespecific networks to multiservice network

10. 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

11. 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

12. 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

13. TV sets PCs

14. B. What is convergence? (Cntd.) • 2. Extended approach • •The coming together of telecommunications, computing • and broadcasting into Information and Communications • Technologies (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 • ICTexpands the range and quality of services

15. 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

16. 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

17. C. Four aspects of Convergence in ICT • Terminal convergence • Access convergence • Network convergence • Services convergence

18. 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 devicesallows service providers to work with the devices with different technologies to offer new cost-effective services

19. 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

20. 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

21. 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

22. 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

23. 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)

24. E. General picture of convergence: Technological Sectors ITU

25. E. General picture of Convergence: Market Sectors ITU

26. 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 areassessmentof regulatory responsibilities at a national or international level. • Additional actions are required to ensure that the interestsof consumers and of users are respected.

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

28. 2.Globaltrends 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 - Photonics 2.3. Megatrends in ICT - Digitalization - Mobile communications - Grows of Internet - Convergence of services/networks/devices

29. 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

30. A. Steps of IC sector’s reform Market-based reforms on three ways Process’ steps Privatization Privatization and 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 Incumbents ICT sector’s reform New players Source: McKinsey

31. B. Significant impact on access infrastructureTeledensity growth: Change in teledensity* in different countries between 1996 and 2000 +54 No reform +53 +48 Privatization only Liberalization+ Privatization +26 GDP for each GoC +21 +20 +13 +5 +5 +3 Upper-high income developed countries Lower-high income developed countries Emerging countries Developing countries * Fixed plus mobile lines per 100 population - teledensity Source: ITU, EMC, WEFA, McKinsey

32. Internet user density Lowest in group Group median 54 Highest in group 27 Developed Lower income developed Emerging Developing +41 13 39 16 +31 8 39 17 +38 1 64 12 1 +63 C. Reform’s impact on the Internet penetration Early beginning of the liberalization • Access availability • Prices • Competition • Enabled lines • Choice of services • Interconnection • conditions Source: ITU, EMC, NielsenNet Ratings, World Economic Forum, McKinsey

33. 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

34. 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

35. 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

36. 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.

37. UMTS license costs per 2x5 MHz band (in million Euro) *Estimated Source: BITKOM; Basis: UMTS Forum

38. 3G Licenses: average cost/inhabitants

39. 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)

40. 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

41. 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 conceptof 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"

42. H. Motive forces of reform in IC sector (Cntd) 3. Digital divide Access to telephone, radio, TV, Internet, satellite Digital divide = Telecom divide (2000)

43. Digital divide, 2003

44. Digital divide, 2003 (Cntd)

46. Indicators describing a level of penetration of different IC services