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Innovation Dynamics in the IP Environment

Innovation Dynamics in the IP Environment. The Future of Voice ITU Workshop Geneva, 15-16 January 2007 Knud Erik Skouby CICT, Danish Technical University (DTU) Skouby@cict.dtu.dk. Overview. Innovation Economics: Changes and disruptions The Internet & The Internet Protocol

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Innovation Dynamics in the IP Environment

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  1. Innovation Dynamics in the IP Environment The Future of Voice ITU Workshop Geneva, 15-16 January 2007 Knud Erik Skouby CICT, Danish Technical University (DTU) Skouby@cict.dtu.dk

  2. Overview • Innovation Economics: Changes and disruptions • The Internet & The Internet Protocol • Next Generation Networks • Convergence and Converged services • Conclusion

  3. Innovation in the IP Environment Two overall effects: • 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 • Changes in products/ markets • access to multimedia applications regardless of the device used or the type of network connected to • Disruption

  4. TECHNOLOGY MARKET POLICY Parameters driving changes Applications Regulation Services

  5. Technological trends

  6. The Internet • 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’ • Internet Protocol (IP) design principles • Distributed design and decentralized control

  7. Internet services - Examples of Internet’s impacts on media servcies

  8. Next Generation Networks (NGN): • 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

  9. 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 • Bitstream 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 Source: TDC

  10. NGAN Technologies- Wireless • WiFi • Unlicensed Industrial, Science and Medical (ISM) band (The IEEE 802.11b standard). 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. • Digital broadcast infrastructures • Not worldwide standards and different markets apply to different standards: European DAB &DVB, US ATSC or Japanese ISDB standards.

  11. Different technologies, • Different sectors, • Different industries • Different markets • Different regulations • The Silo framework is based on: • Technology specific parameters • Regulatory parameters Content Traditional/current framework-Silo based Service Broadcast Telecom Internet Press media Network Terminal

  12. End user equipment Provision Infra-structure Provision Service Provision Content Provision End User Broadcasting Telecom IT New/Future framework-Convergence

  13. Convergence (II) • Single Play • -2000 • Dual Play • 2000-2004 • Triple Play • 2005- • TV • FTTH • Internet • Telephone • TV • DSL • Internet • Telephone • TV • Cable • Internet • Telephone • TV • Wireless • Internet • Telephone Based on Henrik Clausen,IDC Telecom Conference 2006

  14. Convergence (III)

  15. VoIP Scenario • Calls from PSTN to IP & from IP to PSTN, using a gateway • Characteristics: • IP terminals are computers, mobile phones PDA’s and dedicated IP phones. • Calls can be placed both to and from a traditional PSTN telephone. • Advanced signaling systems are being used

  16. Conclusion: 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 • New business models • Direct implications for developing countries.

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